Agenda packet — Healdsburg City Council, October 6, 2025 (part 2 of 4)

Introduction
In 2018, the Wastewater Division of the Municipal Utilities Department completed an overall survey of the wastewater collection system satellite lift stations. The following is a current assessment of each lift station, condition, equipment identification, and recommended maintenance for each site.

Project Description
This report includes current information including the following:
• Overview schematic of lift station zones
• photos of each lift station
• documentation of wet wells
• pumps
• additional equipment pertinent to the function of each site Item 6.f
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Overall Lift Station Map
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Lift Stations
Heron Lift Station

Control Panel: C-Moore Micro Operator Interface. Direct Logic DL-06 Programmable Logic Controller
Power: 3 phase, with connection for mobile generator in the event of a utility power outage
Lid: aluminum and in good condition
Pumps: #1 - Flygt 3127, 10 HP, 230V, 3~, 1750 RPM, 488 impeller #2 - Flygt 3127, 10 HP, 230V, 3~, 1750 RPM, 488 impeller

Spare pumps: 2, shared with Chablis, stored in Pump Shop at the WRF Item 6.f
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Bypass: 3” pump capability with cam-lock fittings
Chains: stainless steel and in good condition
Guide Bars: galvanized and in good condition
Safety Grate: aluminum and in good condition
Hooks: stainless steel and in good condition
Floats: redundant with transducer; pump start, pump stop, and high level alarm Pumping Levels: high 6.5’, low 0.5’
Transducer: PTX 1290 Series (GE) 0-15 psi
Communications: Radio to SCADA via Substation, Sunset Tank, and WRF • High and low level alarms
• Utility power failure alarm
• Communication failure alarm
Maximum Capacity: 6,388 gallons
Wet well capacity: diameter 8.0’ x depth 17.0’
Customer connections: 212 residential units, 1 other (non-residential) unit Note: Heron Lift Station collects wastewater from other lift stations and residential units as noted on the overall lift station map.
• Orchard Lift Station 173 residential units, 2 other (non-residential) units • Orangewood Lift Station 118 residential units, 1 other (non-residential) unit • Hidden Acres region 18 residential units
• Sunset region 65 residential units
Total of 586 residential units and 4 other (non-residential) units Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Orchard Lift Station

Control Panel: C-Moore Micro Operator Interface. Direct Logic DL-06 Programmable Logic Controller. Schneider Electric Phase Converter Variable Frequency Drives Power: 1 phase, with connection for mobile generator in the event of a utility power outage
Lid: iron and in good condition
Pumps: #1 - Flygt 3102, 5 HP, 230V, 3~, 3450 RPM, 434 impeller #2 - Flygt 3102, 5 HP, 230V, 3~, 3450 RPM, 434 impeller Spare pumps: 2, shared with Kinley & Kennedy, stored in Pump Shop at the WRF Item 6.f
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Orangewood Lift Station

Control Panel: C-Moore Micro Operator Interface. Direct Logic DL-06 Programmable Logic Controller
Power: 1 phase, with connection for mobile generator in the event of a utility power outage
Lid: aluminum and in good condition
Pumps: #1 - Flygt 3102, 3.9 HP, 230V, 1~, 1750 RPM, 434 impeller #2 - Flygt 3102, 3.9 HP, 230V, 1~, 1750 RPM, 434 impeller Spare pumps: 2, stored in Pump Shop at the WRF
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Bypass: 3” pump capability with cam-lock fittings
Chains: stainless steel and in good condition
Guide Bars: galvanized and in good condition
Safety Grate: epoxy coated steel and in good condition
Hooks: stainless and in good condition
Floats: high level pump start and high-high level alarm Pumping Levels: high 5.5’, low 0.5’
Transducer: PTX 1290 Series (GE) 0-15 psi
Communications: Radio to SCADA via Sunset Tank and WRF
• High and low level alarms
• Utility power failure alarm
• Communication failure alarm
Maximum Capacity: 1,908 gallons
Wet well capacity: diameter 5.0’ x depth 13.0’
Customer connections: 118 residential units, 1 other (non-residential) unit Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Kennedy Lift Station

Control Panel: C-Moore Micro Operator Interface. Direct Logic DL-06 Programmable Logic Controller
Power: 3 phase, with connection for mobile generator in the event of a utility power outage
Lid: aluminum and in good condition
Pumps: #1 - Flygt 3102, 5 HP, 230V, 3~, 3450 RPM, 434 impeller #2 - Flygt 3102, 5 HP, 230V, 3~, 3450 RPM, 434 impeller Spare pumps: 2, shared with Kinley & Orchard, stored in Pump Shop at the WRF Item 6.f
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Kinley Lift Station

Control Panel: C-Moore Micro Operator Interface. Direct Logic DL-06 Programmable Logic Controller
Power: 3 phase, with connection for mobile generator in the event of a utility power outage
Lid: aluminum and in good condition
Pumps: #1 - Flygt 3102, 5 HP, 230V, 3~, 3450 RPM, 434 impeller #2 - Flygt 3102, 5 HP, 230V, 3~, 3450 RPM, 434 impeller Spare pumps: 2, shared with Kennedy & Orchard, stored in Pump Shop at the WRF Item 6.f
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Bypass: 3” pump capability with cam-lock fittings
Chains: stainless steel and in good condition
Guide Bars: galvanized and in good condition
Safety Grate: epoxy coated steel and in good condition
Hooks: stainless steel and in good condition
Floats: high level pump start and high-high level alarm Pumping Levels: high 5.5’, low 0.5’
Transducer: PTX 1290 Series (GE) 0-15 psi
Communications: Radio to SCADA via Corporation Yard and WRF • High and low level alarms
• Utility power failure alarm
• Communication failure alarm
Maximum Capacity: 2,936 gallons
Wet well capacity: diameter 5.0’ x depth 20.0’
Customer connections: 0 residential units, 9 other (non-residential) units Note: Kinley Lift Station collects wastewater from Hendricks Lift Station and the City of Healdsburg Corporation Yard.

Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Chablis Lift Station

Control Panel: C-Moore Micro Operator Interface. Direct Logic DL-06 Programmable Logic Controller
Power: 3 phase, with connection for mobile generator in the event of a utility power outage
Lid: iron and in good condition
Pumps: #1 - Flygt 3127, 10 HP, 230V, 3~, 1750 RPM, 488 impeller #2 - Flygt 3127, 10 HP, 230V, 3~, 1750 RPM, 488 impeller Spare pumps: 2, shared with Heron, stored in Pump Shop at the WRF Item 6.f
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Moore Lift Station

History: Moore Lift Station has been abandoned with the installation of 735’ of new 8” PVC gravity sewer main connected to the North St. sewer trunk.

Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Hendricks Lift Station

Control Panel: Internally designed and fabricated. Direct Logic DL-05 Programmable Logic Controller
Power: 1 phase, with connection for mobile generator in the event of a utility power outage. This station is connected to PG&E, not City Electric.

Lid: Cast iron manhole cover and in good condition
Pumps: #1 - Goulds 2 HP, 230V, 1~, HS2012BHF
#2 - Peabody Barnes 3/4 Hp, 1~
Spare pumps: 1, shared with Dry Creek, Corporation Yard, & Giorgi Park, stored in Pump Shop at the WRF
Bypass: None
Chains: None (universal coupling connection)
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Guide Bars: None (universal coupling connection)
Safety Grate: None (manhole cover)
Hooks: None
Floats: pump start, pump stop, and high level alarm
Pumping Levels: high 5.5’, low 1.0’
Transducer: None
Communications: Radio to SCADA via Corporation Yard and WRF • High and low level alarms
• Utility power failure alarm
• Communication failure alarm
Maximum Capacity: 544 gallons
Wet well capacity: wide 3.0’ x depth 8.0’
Customer connections: 3 residential units, 1 other (non-residential) units Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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The following lift stations are all located at the City of Healdsburg Corporation Yard property:
▪ Dry Creek Lift Station (formerly Operations Building) ▪ Corporation Yard Lift Station
▪ Animal Shelter Lift Station (abandoned)
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Dry Creek Lift Station (formerly PW O&M Building)

Control Panel: Sunbelt Power Controls
Power: 3 phase, connected to permanently installed back-up generator at Dry Creek Drinking Water Production Facility in the event of a utility power outage Lid: iron and in good condition
Pumps: unknown
Spare pumps: 1, shared with Hendricks, Corporation Yard, & Giorgi Park, stored in Pump Shop at the WRF
Bypass: None
Chains: steel and in decent condition
Guide Bars: galvanized and in decent condition
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Safety Grate: None
Hooks: None
Floats: pump start, pump stop, and high level alarm
Pumping Levels: high 4.0’, low 1.0’
Transducer: none
Communications: Hardwired to SCADA via Dry Creek Wellfield, then radio to WRF • High and low level alarms
• Utility power failure alarm
• Communication failure alarm
Maximum Capacity: 752 gallons
Wet well capacity: diameter 4.0’ x depth 8.0’
Customer connections: 0 residential units, 1 other (non-residential) unit Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Corporation Yard Lift Station

Control Panel: Peabody Barnes
Power: 1 phase, connected to permanently installed back-up generator at Corporation Yard in the event of a utility power outage
Lid: cast iron manhole cover
Pump: Goulds 2 HP, 230V, 1~, HS2012BHF
Spare pumps: 1, shared with Dry Creek, Hendricks, & Giorgi Park, stored in Pump Shop at the WRF
Bypass: None
Chain: new stainless steel
Guide Bars: none
Safety Grate: none
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Hooks: none
Float: pump start, pump stop, and high level alarm
Pumping Levels: high 4.5’, low 3.0’
Transducer: none
Communications: Hardwired to SCADA via Corporation Yard, then radio to WRF • High and low level alarms
• Utility power failure alarm
• Communication failure alarm
Maximum Capacity: 881 gallons
Wet well capacity: diameter 5.0’ x depth 6.0’
Customer connections: 0 residential units, 1 other (non-residential) unit Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Animal Shelter Lift Station

History: Abandoned with demolition of old Animal Shelter.

Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Giorgi Park Lift Station

Control Panel: Orenco
Power: 1 phase, no connection for mobile generator
Lid: fiberglass, and in good condition
Pump: Goulds 2 HP, 230V, 1~, HS2012BHF
Spare pumps: 1, shared with Dry Creek, Hendricks, & Corporation Yard, stored in Pump Shop at the WRF
Bypass: None
Chain: new stainless steel
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Guide Bars: none
Safety Grate: none
Hooks: none
Float: pump start, pump stop, and high level alarm
Pumping Levels: high 4.5’, low 3.0’
Transducer: none
Communications: Radio to SCADA via Gauntlett Reservoir and WRF • High and low level alarms
• Communication failure alarm
Maximum Capacity: 220 gallons
Wet well capacity: diameter 2.5’ x depth 6.0’
Customer connections: 0 residential units, 1 other (non-residential) unit Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
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Magnolia Lift Station

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Pumps: #1 - Fairbanks Morse B5414, 60 HP, 460V, 3~, 1200 RPM, 15.25 impeller #2 - Fairbanks Morse B5414, 60 HP, 460V, 3~, 1200 RPM, 15.25 impeller #3 - Pentair Fairbanks D5434WD, 60 HP, 460V, 3~, 1200 RPM #4 - Wilo Emu FA20.54E, 56 HP, 460V, 3~, 1200 RPM
Chains: none required
Guide Bars: none required
Safety Grate: aluminum throughout the wet well and in poor condition Hooks: none required
Float: high level alarm
Transducer: PTX 1290 Series (GE) 0-15 psi
Pumping Levels: lead pump set point – 7’, lag start 7.5’, lag-2 start 8’, lag-3 start 8.5’ Communications: Radio to SCADA via WRF
Customer connections: All City of Healdsburg wastewater flows through this station; WRF influent pump station
Records: Annual logbook, weekly rounds sheets, ER Portal equipment maintenance software, As-builts
Flows at 60 Hz (maximum speed) and 7’ NPSH:
• pump #1: 1950 GPM
• pump #2: 1970 GPM
• pump #3: 2050 GPM
• pump #4: 1950 GPM
• all 4 pumps running simultaneously: 5300 GPM
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Generator: Peterson Power Systems / CAT
Model # SR4
Serial # 6DA01962
3 Phase
500 kva
603 hp
1800 rpm
1,000 gallon fuel tank (will run approximately 40 hours/tank) 60 hz
Communications: Radio to SCADA via WRF

Auxiliary 6” Pump: Power Prime Pump
Perkins diesel engine
Model # DV150
Serial # 453019
38 hp
2,250 gpm
160 gallon fuel tank (will run approximately 24 hours/tank) Communications: none
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Summary and Recommendations
Heron Lift Station – Usable condition, recently replaced force mains, recommend rehabilitation to eliminate massive root intrusion, or potential future station relocation to Badger Park.

Orchard Lift Station – Good condition, recently replaced pumps controlled by new VFDs, recommend rehabilitation of very heavy traffic-rated wet well lid.

Orangewood Lift Station - Good condition, no recommendations at this time.

Kennedy Lift Station – Good condition, no recommendations at this time.

Kinley Lift Station - Good condition, no recommendations at this time.

Chablis Lift Station - Good condition, no recommendations at this time.

Hendricks Lift Station – Poor condition, recommend rehabilitation or abandonment in favor of gravity main solution.

Dry Creek Lift Station (formerly Operations Building) - Good condition, recommend replacement of uni-strut and pipe anchorage hardware due to heavy deterioration.

Corporation Yard Lift Station – Very poor condition, only one installed pump, heavy wetwell and piping deterioration, recommend complete station rehabilitation.

Giorgi Park Lift Station - Good condition, no recommendations at this time.

Magnolia Lift Station – Good condition, recently completed replacement of pump #3 and ventilation system, recommend replacement of deteriorated & unstable safety grating in wet well.

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± Legend
Pipe CCTV Status
CCTV Inspection Completed
CCTV Inspection Not Required
2021 CCTV Inspection Year
2020 CCTV Inspection Year
0 1,500 3,000
Feet
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±
Legend
Pipe CCTV Status
CCTV Inspection Completed
CCTV Inspection Not Required
2021 CCTV Inspection Year
2020 CCTV Inspection Year
0 1,500 3,000
Feet
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Diameter
[inches]
Not Required
[LF]
Completed
[LF]
2020
[LF]
2021
[LF]
UNK 167 18 1,279 257
4 0 0 0 213
6 15,604 39,344 51,891 43,941
8 31,700 4,901 6,486 15,332
10 2,809 3,904 7,495 875
12 5,435 1,879 2,029 5,146
15 3,960 0 0 1,899
16 0 0 0 1,617
18 3,972 0 51 1,054
21 5,442 0 0 0
24 2,937 0 0 2,281
30 202 0 0 0
33 6,087 0 0 0
36 918 0 0 0
CCTV Category
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Manhole Observation Form
City of Healdsburg
Public Works Department
CDC #
GIS Electronically Filed
Manhole Observation Form
City of Healdsburg
Public Works Department
CDC #
GIS Electronically Filed
Please send completed form to Joshua Damron
Please send completed form to Joshua Damron Updated 4/2011 Tommy\users\public works\Shared\Forms and Templates\Manhole Observation Form 2011.pdf Employee Name: Date:

Intersection or Nearest Address:
/ / MH ID # (See Zone Map):

Nearest Cross Street:

Roots Present? Y N Visible Ground Water Infiltration? Y N Grease build up? Y N Solids build up? Y N Please add any comments here or on reverse side.

Manhole Conditions:

Employee Name: Date:

Intersection or Nearest Address:
/ / MH ID # (See Zone Map):

Nearest Cross Street:

Vent Holes in Lid/Cover? Y N Rim & Cover Fit? Y N Rim & Cover Secured? Y N Concrete Cone? Y N Concrete Barrel Section? Y N Concrete Base? Y N

Is base configured correctly for flow? Y N If structure is not concrete then what material? __________________ Manhole Structure:

Roots Present? Y N Visible Ground Water Infiltration? Y N Grease build up? Y N Solids build up? Y N Please add any comments here or on reverse side.

Manhole Conditions:

Vent Holes in Lid/Cover? Y N Rim & Cover Fit? Y N Rim & Cover Secured? Y N Concrete Cone? Y N Concrete Barrel Section? Y N Concrete Base? Y N

Is base configured correctly for flow? Y N If structure is not concrete then what material? __________________ Manhole Structure:

SSMH / SDMH

SSMH / SDMH
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4888-6324-5708 v1

CITY OF HEALDSBURG
ORDINANCE NO. 1240

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG ADOPTING WATER AND
WASTEWATER RATES FOR FISCAL YEARS 2024-25, 2025-
26, AND 2026-27
WHEREAS, Healdsburg Municipal Code Section 13.20.180 and 13.20.130 authorize the City Council to set and impose rates, by resolution, for water and wastewater services rendered by the City of Healdsburg (“City”); and
WHEREAS, the City Council may adopt any fee or charge by ordinance if it is permitted to adopt the fee or charge by resolution; and
WHEREAS, the water and wastewater services rates currently applied to City customers were last updated by Resolution No. 96-2022 adopted by City Council on June 21, 2022; and WHEREAS, the City hired Raftelis, Inc (“Raftelis”) to review the City’s water and wastewater rates to determine whether they adequately recover ongoing costs to provide these services and support needed capital improvements; and
WHEREAS, Raftelis submitted a Water and Wastewater Cost of Service and Rate Design, dated March 22, 2024 (“Rate Study”), which recommends revised water and wastewater rate schedules for Fiscal Years 2024-25, 2025-26, and 2026-27. The Rate Study is attached hereto as Exhibit A and hereby incorporated by reference; and
WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Rate Study and the Staff Report and attachments thereto:
(1) Revenues derived from the proposed rates will not exceed the costs required to provide water and wastewater service, respectively.
(2) Revenues derived from the proposed water and wastewater rates will not be used for any purpose other than that for which they were imposed. (3) The amount of the rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportionate cost of the service attributable to the parcel. (4) The rates are imposed for a service or services that are actually used by, or immediately available to, the owner of the property in question.
(5) The rates are not being imposed for, nor will they contribute to, general government services; and
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Ordinance No. 1240

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WHEREAS, pursuant to the provisions of Article XIII D, Section 6, of the California Constitution (“Proposition 218”), prior to extending, imposing or increasing water and wastewater rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to water and wastewater rates together with an explanation of:
(1) the amount of the proposed rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by a majority of the parcels subject to the modified rates (“majority protest”); and WHEREAS, notice of the public hearing to consider proposed adjustments to the water and wastewater rates was mailed to property owners of record and customers of record in accordance with Proposition 218; and
WHEREAS, on May 6, 2024, the City Council conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist; and
WHEREAS, the Rate Study recommends transitioning the existing capital reserve policy to a rate stabilization policy, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing the capital reserve to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates; and WHEREAS, the mailed notice of public hearing included a statement that there is a 120- day statute of limitations for challenging the water and wastewater rates should the proposed water or wastewater rates be adopted; and
WHEREAS, the water and wastewater rates are “exempt charges,” within the meaning of Section 1 of Article XIII C of the California Constitution and the proposed Taxpayer Protection and Government Accountability Act (Initiative No. 21-0042) because they are charges that are imposed in accordance with and subject to Article XIII D of the California Constitution; and

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF HEALDSBURG DOES ORDAIN AS FOLLOWS:

Section 1. The above recitals are true and correct, and incorporated herein by reference and each is relied upon independently by the City Council for its adoption of the Ordinance.

Section 2. The City Council finds that the adoption of this Ordinance is not considered a project under Public Resources Code Section 21065 and California Environmental Quality Act (“CEQA”) Guidelines Section 15378 because the Ordinance does not have the potential for Item 6.f
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Ordinance No. 1240

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resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, as the Ordinance creates government funding mechanisms which do not involve any commitment to any specific project. The Ordinance is also exempt from CEQA as there is no possibility for causing a significant effect on the environment, per CEQA Guideline Section 15061(b)(3). No specific water or wastewater projects are associated with this Ordinance. The Ordinance is policy-oriented and would create a funding mechanism for the development of future water or wastewater facilities. When and if specific water or wastewater projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA and City practice.

Section 3. The procedures followed and the water and wastewater rates referenced herein are in compliance with the California Constitution Article XIII D and Government Code section 53755.

Section 4. The City Council adopts the water and wastewater rate schedules in Exhibit B attached hereto and incorporated herein by this reference. These rates shall supersede previously adopted water and wastewater rates, with the exception of previously adopted Water Shortage Rate Surcharges.

Section 5. The City Council approves and adopts the Rate Study attached hereto as Exhibit A, which sets forth the basis for the water and wastewater rates.

Section 6. The water and wastewater rates, set forth in Exhibit B, may be amended from time to time by ordinance or resolution of the City Council.

Section 7. The City Council approves and adopts a reserve target for both the Water and Wastewater enterprises at the amount of revenue needed to sustain a 90-day operating reserve plus an additional one-million dollars, for each enterprise, to be used as a rate stabilization reserve.

Section 8. If any provision, section, paragraph, sentence or word of this Ordinance, or the application thereof to any person or circumstance, is rendered or declared invalid by any court of competent jurisdiction, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance, and their application to other persons or circumstances, shall not be affected thereby and shall remain in full force and effect and, to that end, the provisions of this Ordinance are severable.

Section 9. This Ordinance shall become effective thirty days after the date of its adoption.

Section 10. The City Clerk is directed to cause this Ordinance to be published in the manner required by law.

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Ordinance No. 1240

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I, RAINA ALLAN, City Clerk of the City of Healdsburg, do hereby certify that the foregoing is a full, true, and correct copy of Ordinance No. 1240 passed and adopted by the Healdsburg City Council on the 20th day ofMay 2024.

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Water and Wastewater Cost of Service
and Rate Design Study
City of
Healdsburg
Study Report // March 22, 2024
Corrected May 14, 2024
EXHIBIT A – RATE STUDY Item 6.f
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2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY March 22, 2024
Mr. Terry Crowley
Public Works Director
City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
Subject: Water and Wastewater Rate Study
Dear Mr. Crowley,
Raftelis is pleased to provide this Water and Wastewater Rate Study to the City of Healdsburg. The overall purpose of the study was to develop three years of proposed rates for the City’s Water and Wastewater Enterprises for implementation in Fiscal Year (FY) 2024-25 through FY 2026-27. The proposed utility rates were developed following industry standard rate methodologies and in conjunction with the City’s legal counsel to ensure that rates are fair, cost-justified, and aligned with the requirements of California’s Proposition 218.

The primary objectives of the study were to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record This Report outlines the study background, results, and recommendations related to the development of utility financial plans, cost of service analyses, and proposed rates. It has been a pleasure working with you and we thank you and other City staff for the support provided to Raftelis during this study.

Sincerely,
Kevin Kostiuk
Senior Manager
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Table of Contents

1. EXECUTIVE SUMMARY................................................................................................................... 1

1.1. Study Overview ................................................................................................................................. 1

1.2. Rate Study Process ........................................................................................................................... 1

1.3. Proposed Water Financial Plan ......................................................................................................... 2

1.4. Proposed Water Rates ...................................................................................................................... 7

1.5. Water Bill Impacts ............................................................................................................................ 10

1.6. Proposed Wastewater Financial Plan ............................................................................................. 10

1.7. Proposed Wastewater Rates ........................................................................................................... 15

1.8. Wastewater Bill Impacts .................................................................................................................. 17

2. INTRODUCTION ............................................................................................................................. 18

2.1. Agency Overview ............................................................................................................................. 18

2.2. Study Overview ............................................................................................................................... 18

3. LEGAL REQUIREMENTS AND RATE SETTING METHODOLOGY ............................................ 20

3.1. Legal Requirements ........................................................................................................................ 20

3.2. Rate-Setting Methodology ............................................................................................................... 20

4. WATER RATE STUDY ................................................................................................................... 22

4.1. Key Inputs and Assumptions ........................................................................................................... 22

4.1.1. Current Water Rates ........................................................................................................................ 22

4.1.2. Water Enterprise Financial Assumptions ........................................................................................ 23

4.1.3. Projected Water Service Connections ............................................................................................ 24

4.1.4. Projected Water Sales ..................................................................................................................... 25

4.2. Water Financial Plan ....................................................................................................................... 25

4.2.1. Water Enterprise Revenue under Current Rates ............................................................................ 25

4.2.2. Water Enterprise Operations & Maintenance Expenses ................................................................ 26

4.2.3. Water Enterprise Debt ..................................................................................................................... 27

4.2.4. Water Enterprise Capital Improvement Program ............................................................................ 27

4.2.5. Water Enterprise Financial Policies ................................................................................................ 29

4.2.6. Status Quo Water Financial Plan .................................................................................................... 31

4.2.7. Proposed Water Financial Plan ....................................................................................................... 32

4.3. Proposed Water Rate Structure Modifications ................................................................................ 38

4.4. Water Cost of Service Analysis ....................................................................................................... 39

4.4.1. Methodology .................................................................................................................................... 39

4.4.2. Water Rate Revenue Requirement ................................................................................................. 40

4.4.3. Water System Peaking Factors ....................................................................................................... 41 Item 6.f
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2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY

4.4.4. Functionalization and Allocation of Expenses ................................................................................. 42

4.4.5. Water Enterprise O&M Expense Allocation .................................................................................... 44

4.4.6. Water Enterprise Capital Allocation ................................................................................................ 45

4.4.7. Peaking Units of Service ................................................................................................................. 47

4.4.8. Development of unit costs ............................................................................................................... 49

4.4.9. Water Cost Allocation to Customer Classes ................................................................................... 50

4.5. Proposed Water Rates .................................................................................................................... 51

4.5.1. Water Service Charges (Test Year FY 2024-25) ............................................................................ 51

4.5.2. Water Volume Rates (Test Year) .................................................................................................... 52

5. WASTEWATER RATE STUDY ...................................................................................................... 56

5.1. Key Inputs and Assumptions ........................................................................................................... 56

5.1.1. Current Wastewater Rates .............................................................................................................. 57

5.1.2. Wastewater Enterprise Financial Assumptions ............................................................................... 57

5.1.3. Projected Wastewater Billing Units of Service ................................................................................ 58

5.2. Wastewater Financial Plan .............................................................................................................. 59

5.2.1. Wastewater Enterprise Revenue under Current Rates .................................................................. 59

5.2.2. Wastewater Enterprise Operations & Maintenance Expenses ....................................................... 60

5.2.3. Wastewater Enterprise Debt ........................................................................................................... 61

5.2.4. Wastewater Enterprise Capital Improvement Plan ......................................................................... 61

5.2.5. Wastewater Enterprise Financial Policies ....................................................................................... 63

5.2.6. Status Quo Wastewater Financial Plan ........................................................................................... 64

5.2.7. Proposed Wastewater Financial Plan ............................................................................................. 66

5.3. Wastewater Cost-of-Service Analysis ............................................................................................. 71

5.3.1. Methodology .................................................................................................................................... 71

5.3.2. Wastewater Rate Revenue Requirement ........................................................................................ 72

5.3.3. Functionalization and Allocation of Expenses ................................................................................. 73

5.3.4. Wastewater Enterprise O&M Expense Allocation ........................................................................... 74

5.3.5. Wastewater Enterprise Capital Allocation ....................................................................................... 75

5.3.6. ALLOCation of revenue requirement to cost components .............................................................. 76

5.3.7. Plant Mass Balance Analysis .......................................................................................................... 77

5.3.8. Wastewater Unit Costs .................................................................................................................... 78

5.3.9. Wastewater Cost Allocation to Customer Classes .......................................................................... 79

5.4. Proposed Wastewater Rates ........................................................................................................... 80

5.4.1. Proposed Wastewater Rates (Test Year) ....................................................................................... 80

6. CUSTOMER BILL IMPACTS .......................................................................................................... 83

6.1. Combined Water & Wastewater Monthly Bill Impacts, SFR ........................................................... 83 Item 6.f
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List of Tables
Table 1-1: Proposed Water Revenue Adjustments ...................................................................................................... 2 Table 1-2: Current and Proposed Water Use Rate Structures ..................................................................................... 8 Table 1-3: Proposed Three-Year Water Rates Schedule ............................................................................................. 9 Table 1-4: Proposed Wastewater Revenue Adjustments ........................................................................................... 11 Table 1-5: Proposed Three-Year Wastewater Rate Schedule ................................................................................... 16 Table 4-1: Current Water Rates Schedule .................................................................................................................. 23 Table 4-2: Water Enterprise Inflationary Assumptions ............................................................................................... 24 Table 4-3: Current Metered Water Connections ......................................................................................................... 24 Table 4-4: Projected Water Demand .......................................................................................................................... 25 Table 4-5: Projected Revenue from Existing Rates .................................................................................................... 25 Table 4-6: Other Water Enterprise Revenues ............................................................................................................ 26 Table 4-7: Summary of Projected Water Enterprise Revenues (Current Rates) ........................................................ 26 Table 4-8: Projected Water Enterprise O&M Expenses ............................................................................................. 27 Table 4-9: Water Enterprise Debt Service .................................................................................................................. 27 Table 4-10: Water Enterprise Five-Year Capital Improvement Plan .......................................................................... 28 Table 4-11: Water Enterprise Capital Improvement Plan, by Funding Source ........................................................... 29 Table 4-12: Water Enterprise Financial Policies ......................................................................................................... 30 Table 4-13: Projected Water Enterprise Reserve Targets .......................................................................................... 30 Table 4-14: Water Enterprise Cash Flow – Status Quo Financial Plan ...................................................................... 31 Table 4-15: Water Enterprise Pro Forma - Status Quo Financial Plan....................................................................... 32 Table 4-16: Proposed Water Enterprise Revenue Adjustments ................................................................................. 33 Table 4-17: Water Enterprise Cash Flow – Proposed Financial Plan ........................................................................ 33 Table 4-18: Water Enterprise Pro Forma - Proposed Financial Plan ......................................................................... 34 Table 4-19: Proposed Water Rate Structure Changes ............................................................................................... 39 Table 4-20: Projected Water Use by Class and Tier – Test Year ............................................................................... 39 Table 4-21: Water Enterprise Rate Revenue Requirement (Test Year) ..................................................................... 41 Table 4-22: Water System Peaking Factors and Allocations ..................................................................................... 42 Table 4-23: Allocation of Functional Categories to Water Cost Causation Components ........................................... 43 Table 4-24: Water Enterprise O&M Expenses by Functional Category ..................................................................... 44 Table 4-25: Allocation of Water Enterprise O&M Expenses to Cost Causation Components ................................... 44 Table 4-26: Summary of Water Enterprise Capital Assets by Functional Category ................................................... 45 Table 4-27: Allocation of Functionalized Water Capital Assets to Cost Causation Components ............................... 45 Table 4-28: Peaking Units of Service by Customer Class .......................................................................................... 47 Table 4-29: Fireflow Analysis ...................................................................................................................................... 48 Table 4-30: Allocation of Peaking Units to Fire Protection ......................................................................................... 48 Table 4-31: Summary of Total Customer Demand Peaking Units .............................................................................. 48 Table 4-32: Allocation of Revenue Requirement to Cost Components ...................................................................... 49 Table 4-33: Derivation of Cost-of-Service Unit Rates ................................................................................................. 49 Table 4-34: Recovery of Cost Causation Components by Charge Type ................................................................... 50 Table 4-35: Cost to Serve by Water Customer Class ................................................................................................. 50 Table 4-36: Equivalent Water Meters (Test Year) ...................................................................................................... 51 Table 4-37: Water Service Charge Calculation (Test Year) ....................................................................................... 52 Table 4-38: Water Service Charges Calculation (Test Year) ..................................................................................... 52 Table 4-39: Calculation of Supply Rates by Customer Class and Tier....................................................................... 52 Table 4-40: Calculation of Base Delivery Rate ........................................................................................................... 53 Table 4-41: Calculation of Peaking Unit Rates ........................................................................................................... 53 Table 4-42: Calculation of Conservation Unit Rates ................................................................................................... 54 Table 4-43: Water Use Rates Calculation (Test Year) ............................................................................................... 54 Item 6.f
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2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY Table 4-44: Proposed Three-Year Water Rates Schedule ......................................................................................... 55 Table 5-1: Current Wastewater Rates Schedule ........................................................................................................ 57 Table 5-2: Wastewater Enterprise Inflationary Assumptions ...................................................................................... 58 Table 5-3: Current Wastewater Enterprise Connections ............................................................................................ 58 Table 5-4: Estimated Non-Residential Wastewater Flows (hcf), Existing Rate Structure .......................................... 59 Table 5-5: Projected Rate Revenues with Current Wastewater Rates ...................................................................... 59 Table 5-6: Other Wastewater Enterprise Revenues ................................................................................................... 60 Table 5-7: Projected Wastewater Enterprise Revenues Under Current Rates .......................................................... 60 Table 5-8: Projected Wastewater Enterprise O&M Expenses .................................................................................... 60 Table 5-9: Wastewater Enterprise Debt Service......................................................................................................... 61 Table 5-10: Wastewater Enterprise Capital Improvement Plan .................................................................................. 62 Table 5-11: Wastewater Enterprise Capital Improvement Plan, by Funding Source ................................................. 63 Table 5-12: Wastewater Enterprise Financial Policies ............................................................................................... 64 Table 5-13: Projected Wastewater Enterprise Reserve Targets ................................................................................ 64 Table 5-14: Wastewater Cash Flow – Status Quo Financial Plan .............................................................................. 65 Table 5-15: Wastewater Enterprise Pro Forma – Status Quo Financial Plan ............................................................ 66 Table 5-16: Proposed Wastewater Enterprise Revenue Adjustments ....................................................................... 66 Table 5-17: Wastewater Cash Flow – Proposed Financial Plan ................................................................................ 67 Table 5-18: Wastewater Enterprise Pro Forma – Proposed Financial Plan ............................................................... 68 Table 5-19: Wastewater Rate Revenue Requirement (Test Year) ............................................................................. 72 Table 5-20: Allocation of Functional Categories to Wastewater Cost Causation Components ................................. 74 Table 5-21: Wastewater Enterprise O&M Expenses – Allocation to Cost Causation Components ........................... 74 Table 5-22: Wastewater Enterprise Capital Assets by Functional Category .............................................................. 75 Table 5-23: Functionalized Wastewater Capital Assets Allocation to Cost Causation Components ......................... 75 Table 5-24: Allocation of Test Year Revenue Requirement to Cost Causation Components .................................... 76 Table 5-25: Mass Balance Analysis ............................................................................................................................ 77 Table 5-26: Wastewater Unit Costs Calculation (Test Year) ...................................................................................... 78 Table 5-27: Wastewater Cost Allocation to Customer Classes (Test Year) ............................................................... 79 Table 5-28: Proposed Wastewater Rate Calculation (Test Year) ............................................................................... 81 Table 5-29: Proposed Three-Year Wastewater Rates Schedule ............................................................................... 82 Table 6-1: FY 2023-24 Single Family Residential Bill Impacts (7 HCF water, 4 HCF AWC) ..................................... 83 Item 6.f
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List of Figures
Figure 1-1: Water Enterprise Capital Improvement Plan .............................................................................................. 4 Figure 1-2: Water Enterprise Financial Plan - Proposed vs. Status Quo ..................................................................... 5 Figure 1-3: Water Enterprise Projected Ending Cash Balances ................................................................................... 6 Figure 1-4: Water Enterprise Projected Debt Coverage ............................................................................................... 7 Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2024-25) ....................................................... 10 Figure 1-6: Wastewater Enterprise Capital Improvement Plan .................................................................................. 12 Figure 1-7: Wastewater Enterprise Financial Plan - Proposed vs. Status Quo .......................................................... 13 Figure 1-8: Wastewater Enterprise Projected Ending Cash Balances ....................................................................... 14 Figure 1-9: Wastewater Enterprise Projected Debt Coverage ................................................................................... 15 Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2024-25) ........................................... 17 Figure 11: Historical Annual Water Usage (Acre Feet) .............................................................................................. 19 Figure 4-1: Water Enterprise Capital Improvement Plan ............................................................................................ 29 Figure 4-2: Proposed Water Financial Plan – Projected Debt Coverage ................................................................... 35 Figure 4-3: Proposed Water Financial Plan – Projected Ending Cash Balances ....................................................... 36 Figure 4-4: Proposed vs. Status Quo Water Financial Plan ....................................................................................... 37 Figure 5-1: Wastewater Enterprise Capital Improvement Plan .................................................................................. 63 Figure 5-2: Proposed Wastewater Financial Plan – Projected Debt Coverage .......................................................... 69 Figure 5-3: Proposed Wastewater Financial Plan – Projected Ending Cash Balances ............................................. 70 Figure 5-4: Proposed vs. Status Quo Wastewater Enterprise Financial Plan ............................................................ 71 Item 6.f
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2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY List of Abbreviations
AF: Acre-feet
AFY: Acre-feet per year
AWWA: American Water Works Association
BOD: Biological Oxygen Demand
CIP: Capital Improvement Plan
City: City of Healdsburg
COS: Cost of Service
CPI: Consumer Price Index
CY: Calendar Yar
FY: Fiscal year
GPCD: Gallons per capita per day
GPM: Gallons per minute
HCF: One hundred cubic feet
K: Thousand
Lbs: Pounds
M: Million
Manual M1: American Water Works Association’s Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition
Max Day: Maximum day water demand
Max Hour: Maximum hour water demand
MG: Million gallons
Mg/L: Milligrams per Liter
MGD: Million gallons per day
NPDES Permit: National Pollutant Discharge Elimination System Permit O&M: Operations and maintenance
PPM: Parts per million
R&R: Repair and replacement
RCLD: Replacement cost less depreciation
SS: Suspended Solids
Study Period: the rate-setting period of this study which extends through fiscal year 2027-28 WEF: Water Environment Federation
WWTP: Wastewater treatment plant
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 1

1.Executive Summary

1.1.Study Overview
Public water and wastewater utilities in California typically perform a Cost-of-Service analysis every three to five years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

The City of Healdsburg last conducted a water and wastewater cost of service study in 2022, which established proposed rates over a five-year period. However, the study did not anticipate recent historic inflation and the significant and sustained water conservation seen through the end of 2022 and into 2023. The City of Healdsburg (City) engaged Raftelis to conduct a water and wastewater cost of service study to develop a long-range financial plan and establish a proposed three-year schedule of water and wastewater rates through FY 2026-27. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing, and absent a majority protest by parcels served by the City. Proposition 218 requires that the City customers mail a public hearing notice detailing proposed rate changes no fewer than 45 days before the public hearing.

The major objectives of this study are to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record

1.2.Rate Study Process
This study was conducted using industry-standard principles outlined by the American Water Works Association’s (AWWA) Manual M1 and the Water Environment Federation’s (WEF) Financing and Charges for Wastewater Systems. The overall process outlined below applies to the development of both water and wastewater rates.

1. Financial Plan: Develop cash flow projections for the Water and Wastewater Enterprise to determine the amount of revenue required from water and wastewater rates.

2. Cost of Service Analysis: Allocate costs to system components and then to various customer classes based on the costs incurred and user characteristics of each.

3. Rate Design: Develop rates that generate sufficient revenues based on the results of the financial plan and cost of service analyses and that communicate the policy preferences of the agency, maintaining that rates are cost-justified.

4. Administrative Record Preparation: Develop an administrative record (Study report) to document the results of the rate study.

5. Rate Adoption: Proposed rates may be adopted by City Council only after holding a public hearing in accordance with the procedural requirements of Proposition 218.

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1.3.Proposed Water Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing water rates adequately fund the Water Enterprise’s various expenses over a long-range planning period. Annual projections of revenues, O&M costs, debt service payments, and capital expenditures through FY 2032-33 were developed with City staff. Raftelis projects that with no rate increases over the five-year study period, the Water Enterprise’s reserves will quickly turn negative and fail to meet minimum debt coverage requirements in all years. This analysis demonstrates a clear need for revenue adjustments (i.e. gross water rate revenue increases relative to existing rate revenues). Raftelis worked with City staff to develop the following proposed revenue adjustments over the five-year study period, with proposed rates for adoption for the first three years only (see Table 1-1).

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. As a result, the proposed financial plan fully funds the operating reserve, but it does not fully fund the rate stabilization reserve. When the City undertakes the next rate study, it is recommended that the City consider fully funding the rate stabilization reserve in the financial plan.

Table 1-1: Proposed Water Revenue Adjustments

PROPOSED INCREASE FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 21.0% 20.0% 13.0% 12.0% 12.0%
Key factors influencing the need for proposed revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, and water supply. » Reduction in baseline water demand: Following two multi-year droughts and associated mandatory conservation and messaging, the City has continued to experience lower overall water consumption relative to historical demands. While conservation is necessary in ensuring reliable long-term water supplies, utility costs must be recovered and reduced water demands generally mean increased rate pressure.
» Planned capital expenditures: Adjusted for inflation, the Water Enterprise has over $28 M in planned CIP in the next five years. Many projects in the long-term capital plan have been deferred in prior studies due to financial constraints. Continued deferral will challenge overall system reliability and cause larger future rate increases. The City’s utilities have a combined 120 miles of utility pipeline, and a third of those pipes are over 50 years old, resulting in an average of two water service repairs per week. Rate revenues need to be sufficient to execute these projects with cash, future external borrowing (debt proceeds), or a combination of the two. Additionally, the City is facing increasing regulatory mandates to improve water filtration. These mandates include filtering for cryptosporidium and the potential treatment of Per- and Polyfluorinated Substances (PFAS) which requires additional CIP investment. » Cash reserves: Utilities must have sufficient cash on hand to provide for working capital (paying routine expenses), to mitigate fluctuations in costs, and to mitigate risk, whether from seasonality of revenues and Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 3 expenses or the risk that comes with providing services that rely on extensive and specialized infrastructure. Recent inflationary pressure coupled with declines in water sales revenues has resulted in a drawdown of operating reserves. Revenue adjustments will help to ensure that the Water Enterprise can maintain minimum operating reserve policy targets to provide sufficient cash flow and mitigate system risk.
» Debt Coverage: The Water Enterprise fund has debt service coverage requirements as a condition of past external borrowing. Proposed rates ensure the Water Enterprise can achieve coverage on existing debt and have sufficient capacity to qualify for future credit extensions.

In this Study, wastewater rates are proposed for adoption for the first three fiscal years (FY25-FY27) only.

However, Raftelis developed a long-range financial plan to project revenues and expenses over a 10-year period (current fiscal year through FY 2033). For planning purposes and to provide full transparency on the trajectory of future revenue increases, the following figures present 10 years of projections. In addition to the three years of proposed changes and two years of potential future changes (five years total) shown in Table 1-4, an additional four years of future projected increases for wastewater are required to fully recover projected operating and capital costs, maintain debt service coverage above minimum, and maintain operating cash reserves above minimum levels during the 10 year financial planning period. Specifically, these outer year future increases are 5% in FY 2030 and 3.5% in FY 2031-2033. These projections will be revisited as part of future rate studies and are subject to change based on new information, changes in revenues and expenses, City policies, and regulatory requirements.

However, if the predicted future rate increases are not adopted and timely implemented, then cash flows will likely be less than currently depicted.

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Figure 1-1 shows the proposed CIP financing plan over the long-range planning period. The City intends to fund future CIP costs through a combination of cash and future debt proceeds. Future debt proceeds are for planning purposes only and would only be required if the City is required to expend funds on a series of projects related to PFAS.

Figure 1-1: Water Enterprise Capital Improvement Plan
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 5 Figure 1-2 shows the proposed versus status quo Water Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively.

Revenue requirements including O&M expenses, debt service, and cash reserve funding (including for CIP) are represented by the various stacked bars. Revenue adjustments (i.e., gross rate revenue increases) are required to generate additional revenue to fully recover O&M expenses, CIP expenditures, debt service payments, and reserve funding over the study period.

Figure 1-2: Water Enterprise Financial Plan - Proposed vs. Status Quo Item 6.f
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Figure 1-3 shows the Water Enterprise’s projected fiscal year-end cash balance under the proposed financial plan.

The light blue bars indicate the ending balance on June 30 of each year. The minimum operating reserve target is represented by the orange line. The minimum operating reserve is 90 days of operating expenses (including O&M and debt service). The proposed revenue increases shown in Table 1-1 will allow the City to increase operating reserve funding beginning in FY 2024-25, such that the City’s operating reserve funding will meet its minimum reserve requirement throughout the long-range planning period.

Figure 1-3: Water Enterprise Projected Ending Cash Balances Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 7 Figure 1-4 shows projected debt coverage (blue line) relative to the debt coverage minimum requirement (gray line) over the planning period. Debt coverage will increase significantly with the proposed revenue increases shown in Table 1-1. The proposed rate increases will allow the City to meet its minimum debt coverage requirement throughout the study period while planning to borrow for future projects. Failure to meet minimum debt service coverage minimums could result in a downgrade of credit rating, higher costs of future borrowing, or even denial of credit.

Figure 1-4: Water Enterprise Projected Debt Coverage

1.4.Proposed Water Rates
The City of Healdsburg’s existing water rate structure consists of fixed Water Service Charges (based on meter size or dwelling units) and variable Water Volume Rates (per hundred cubic feet [HCF] of water delivered). Raftelis worked closely with City staff and the City’s legal counsel to evaluate potential changes to the existing water rate structure. The following changes are proposed:
» Water Use Rates
o Residential Tiered Water Rates: The Study recommends that the City introduce a three-tiered rate structure for Residential water customers including Single-Family Residential (SFR) and Multi-Family Residential (MFR). MFR customers will receive tier allotments for each dwelling unit served. Tier 1 is defined as the first 5 units of water (HCF) per monthly billing period, reflecting average winter usage (January -March) for a SFR customer rounded up to the nearest whole number. Tier 2 encompasses usage greater than 5 and up to and including 10 HCF, Item 6.f
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representing summer peak (75th percentile in the July – September periods) demands of SFR customers rounded up to the nearest whole number. Tier 3 comprises of all units of water usage exceeding 10 HCF. Residential users are a homogenous customer class with similar indoor needs for health and sanitation, similar outdoor irrigation needs, and similar seasonality in these demand patterns. It is therefore appropriate to tier this class of customers. The proposed monthly allotments for residential customers are shown below in Table 1-2 and reflect actual demand patterns of City water users. Note that non-residential customers will maintain a uniform rate structure.
o All Other Classes: The Study recommends that all other customer classes maintain a uniform rate structure, however, going forward each class will have a distinct uniform rate based on their specific demand characteristics. The new rates by customer class include those customers designated as Commercial, Industrial, and Landscape Irrigation. Non-residential classes have highly varying demand patterns within each class based on the type of business, seasonality, and/or transient effects. Peaking costs, also referred to as extra capacity costs, are costs associated with higher demand patterns. These costs are allocated to each customer class based on their specific class demand patterns and calculating peaking. For this reason, uniform rates are proposed for each of the non-residential classes.
» Monthly Service Charges: The Study recommends harmonizing the fixed service charges across user classes. This change will align Residential customers with a metered connection of a specific size with Non-Residential customers with the same size meter. The proposed structure relies on meter size alone to distinguish the “class” of customer. This change acknowledges that meter capacity, not customer classification, reflects the best estimate of the costs imposed by a user on the water system that are recovered through fixed charges.

Table 1-2: Current and Proposed Water Use Rate Structures Description Current Structure Proposed Structure
Residential (SFR/MFR)
Tier 1 Uniform Water Use Rate
(All Classes)
0-5 HCF
Tier 2 Uniform Water Use Rate
(All Classes)
6-10 HCF
Tier 3 Uniform Water Use Rate
(All Classes)
>10 HCF
Non-Residential Classes
Commercial Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
Industrial Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
Landscape Irrigation Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 9 Table 1-3 the shows the three years of proposed Water Service Charges and Water Volume Rates (through FY 2026-27). All charges and tier allotments are shown in monthly terms and all rates are rounded up to the nearest penny. All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are assumed to be implemented at the beginning of each fiscal year and in effect on or after July 1.

Table 1-3: Proposed Three-Year Water Rates Schedule
Description Current FY 2025 FY 2026 FY 2027
Residential Fixed Monthly Service Charge
Single Family $28.61 By Meter Size By Meter Size By Meter Size Single Family + ADU (per DU) $21.84 By Meter Size By Meter Size By Meter Size Multi-Family (Per DU) $17.01 By Meter Size By Meter Size By Meter Size Fixed Monthly Service Charges
Up to 1" $45.26 $41.34 $49.61 $56.06
1 1/2" $86.90 $77.94 $93.53 $105.69
2" $136.86 $121.86 $146.24 $165.26
3" $253.46 $238.98 $286.78 $324.07
4" $419.91 $370.75 $444.90 $502.74
6" $1,127.75 $736.76 $884.12 $999.06
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48 $6.48 $7.78 $8.80
Tier 2 (6-10 HCF) $6.48 $8.41 $10.10 $11.42
Tier 3 >10 HCF $6.48 $10.80 $12.96 $14.65
Non-Residential Classes
Commercial $6.48 $7.61 $9.14 $10.33
Industrial $6.48 $9.49 $11.39 $12.88
Landscape $6.48 $11.06 $13.28 $15.01
Riverview HOA1 $1.59 $1.93 $2.32 $2.63
1 Only the volumetric rate is applicable to Riverview HOA under the terms of the 1997 order of condemnation. HOA Riverview pays a fixed monthly service charge by meter size that increases based schedule.

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1.5. Water Bill Impacts
Figure 1-5 shows sample monthly water bills for single family residential customers at varying levels of water use under both current and proposed FY 2024-25 rates. Note that actual bill impacts will vary based on individual water use; however, the values shown below are based on low, high, and typical volumes for single family residential customers in the City of Healdsburg.

Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2024-25)

1.6.Proposed Wastewater Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing wastewater rates adequately fund the Wastewater Enterprise’s various expenses over the long-range planning period. Annual projections of revenues, O&M expenses, debt service payments, and capital expenditures through FY 2032-33 were developed with City staff. Raftelis projects that with no rate increases the Wastewater Enterprise’s reserves will quickly become negative and fail to meet minimum debt coverage. This demonstrates a clear need for revenue adjustments (i.e. gross wastewater rate revenue increases relative to existing rate revenues). Raftelis worked with City staff to develop the following proposed revenue adjustments over the five-year study period, with proposed rates for adoption for the first three years only (see Table 1-4).

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. As a result, the proposed financial plan fully funds the operating reserve, but it does not fully Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 11 fund the rate stabilization reserve. When the City undertakes the next rate study, it is recommended that the City consider fully funding the rate stabilization reserve in the financial plan.

Table 1-4: Proposed Wastewater Revenue Adjustments

PROPOSED INCREASES FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 18.0% 18.0% 15.0% 9.0% 5.0%
Key factors influencing the need for proposed Wastewater Enterprise revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, chemicals, and treatment costs among others. » Planned capital expenditures: Adjusted for inflation, the Wastewater Enterprise has over $15 M in CIP in the next five years. As with the Water Enterprise, many projects in the long-term capital plan have been deferred in prior studies due to financial constraints. Continued deferral will challenge overall system reliability and cause larger future rate increases. The City’s utilities have a combined 120 miles of utility pipeline, and a third of those pipes are over 50 years old. Rate revenues need to be sufficient to execute these projects and . for planning purposes, all Wastewater Enterprise projects in this study are assumed to be cash funded.
» Cash reserves: Utilities must have sufficient cash on hand to provide for working capital (paying routine expenses), to mitigate fluctuations in costs, and to mitigate risk whether from seasonality of revenues and expenses or the risk that comes with providing services that rely on extensive and specialized infrastructure. Recent inflationary pressure on both operating and capital costs has resulted in a drawdown of operating reserves. Revenue adjustments will help to ensure that the Wastewater Enterprise can maintain minimum operating reserve policy targets to provide sufficient cash flow and mitigate system risk.
» Debt Coverage: The utility has debt obligations which require a minimum coverage policy. With the added revenues from proposed rate increases, the Enterprise will have sufficient funds to meet debt coverage requirements.

In this Study, wastewater rates are proposed for adoption for the first three fiscal years (FY25-FY27) only.

However, Raftelis developed a long-range financial plan to project revenues and expenses over a 10-year period (current fiscal year through FY 2033). For planning purposes and to provide full transparency on the trajectory of future revenue increases, the following figures present 10 years of projections. In addition to the three years of proposed changes and two years of future changes (five years total) shown in Table 1-4, an additional four years of future projected increases for wastewater are required to fully recover projected operating and capital costs, maintain debt service coverage above minimum, and maintain cash reserves above minimum levels during the 10 year financial planning period. Specifically, these outer year future increases are 5% in FY 2030 and 3.5% in FY 2031-2033. These projections will be revisited as part of future rate studies and are subject to change based on new information, changes in revenues and expenses, City policies, and regulatory requirements. However, if the predicted future rate increases are not adopted and timely implemented, then cash flows will likely be less than currently depicted.

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Figure 1-6 shows the proposed CIP financing plan over the study period. Primary wastewater CIP projects include lift station replacements and relocations as well as extensive sewer line replacement. The City plans to finance its wastewater CIP projects through cash.

Figure 1-6: Wastewater Enterprise Capital Improvement Plan Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 13 Figure 1-7 shows the proposed versus status quo Wastewater Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively.

Revenue adjustments (i.e., gross rate revenue increases) are required to generate additional revenue to fully recover O&M expenses, CIP project costs, debt service payments, and reserve funding over the long-term planning period.

Figure 1-7: Wastewater Enterprise Financial Plan - Proposed vs. Status Quo Item 6.f
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Figure 1-8 shows the Wastewater Enterprise’s projected fiscal year-end cash balance under the proposed financial plan. The light blue bars indicate the ending balance on June 30 of each year. The minimum operating reserve target is represented by the orange line. The minimum operating reserve is 90 days of operating expenses (including O&M and debt service). The proposed wastewater revenue increases shown in Table 1-4 will allow the City to increase operating reserve funding beginning in FY 2024-25, such that the City’s operating reserve funding will meet its minimum reserve requirement throughout the long-range planning period.

Figure 1-8: Wastewater Enterprise Projected Ending Cash Balances Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 15 Figure 1-9 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. The wastewater utility is projected to meet debt coverage requirements and does not intend to issue debt throughout the long-range planning period.

Figure 1-9: Wastewater Enterprise Projected Debt Coverage

1.7.Proposed Wastewater Rates
The City of Healdsburg’s current fixed wastewater rate structure consists of Fixed Service Charges per dwelling unit for residential customers, and charges by meter size for non-residential customers. All customers are also charged a per unit (HCF) charge based on estimated wastewater flows and the strength of the flows. Residential customers’ variable charge units are based on their average winter consumption (AWC) whereas Non-Residential customers are charged per billed unit of water.

Proposed rate structure modifications include:
» Retire the SFR + ADU Fixed Charge: any SFR customer with two or more dwelling units per parcel will be treated as a MFR customer and subject to the multifamily charge. » Non-Residential Meter-Based Fixed Charges: This study maintains the existing non-residential fixed charge structure by meter size, however, the ratios between the meter sizes are proposed to use calculated flow ratios rather than hydraulic capacity ratios. Raftelis used City of Healdsburg sewer user billing data to Item 6.f
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calculate average flow per billing period at each meter size. This approach is more representative of wastewater generation by meter size versus ratios which reflect potential water demand by meter size.

Proposed wastewater rates reflect the revenue adjustments in Table 1-4, the updated wastewater cost of service analysis, and rate modifications discussed immediately above.

Table 1-5 shows proposed wastewater rates through FY 2026-27. All Fixed Charges shown are monthly and all volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are rounded up to the nearest penny. All rates are assumed to be implemented at the beginning of each fiscal year on July 1.

Table 1-5: Proposed Three-Year Wastewater Rate Schedule Description Current FY 2025 FY 2026 FY 2027
Residential Service Charges ($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67 $51.33 $60.57 $69.66 SFR + ADU $31.95 N/A N/A N/A
Multi-Family Residential (MFR) $37.80 $36.94 $43.60 $50.14 Flat Rate (Sewer Only SFR) $104.01 $110.18 $130.02 $149.53 Non Residential Service Charges ($/Month/Meter)
Up to 1" $75.75 $83.88 $98.99 $113.84
1 1/2" $148.49 $243.37 $287.18 $330.26
2" $235.77 $396.68 $468.09 $538.31
3" $439.44 $1,279.52 $1,509.84 $1,736.32
4" $730.39 $1,405.05 $1,657.97 $1,906.67
6" $1,966.94 $1,405.05 $1,657.97 $1,906.67
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47 $14.71 $17.37 $19.98
Non Residential
Low Strength $10.31 $11.43 $13.49 $15.52
Medium Strength $15.09 $15.21 $17.95 $20.65
High Strength $22.08 $21.08 $24.88 $28.62
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1.8. Wastewater Bill Impacts
Figure 1-10 shows sample monthly wastewater bills for SFR customers at varying levels of AWC under both current rates and proposed FY 2024-25 rates. The average AWC for a residence in Healdsburg is approximately 4 HCF per month.

Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2024-25) Item 6.f
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2.Introduction

2.1.Agency Overview
The City of Healdsburg (City), situated 70 miles north of San Francisco on Highway 101 within Sonoma County, boasts a population of around 11,183 residents. The city lies at the meeting point of three valleys: Russian River, Dry Creek, and Alexander Valleys. The City provides water and wastewater services to the City’s residents and businesses, providing services to around 4,700 accounts. The City’s drinking-water is sourced from three well fields: tow located along the Russian River and one located on Dry Creek. The potable water distribution system comprises three pressure zones supplied by six storage reservoirs. Meanwhile, the wastewater collection system consists of an underground network of pipelines that gather and transport raw wastewater from individual user connections to the city's tertiary-level treatment plant, known as the City of Healdsburg's Wastewater Treatment, Reclamation, and Disposal Facility (WWTF). At this facility, all wastewater is treated to meet Title 22 recycled water standards before being discharged into a former gravel extraction pit, Basalt Point, where it percolates into the underlying groundwater basin, ultimately connecting to the Russian River.

2.2. Study Overview
Public water and wastewater utilities in California typically perform a Cost-of-Service analysis every three to five years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

The City of Healdsburg last conducted a water and wastewater cost of service study in 2022, which established proposed rates over a five-year period. However, the study did not anticipate recent historic inflation and the significant and sustained water conservation seen through the end of 2022 and into 2023. The City of Healdsburg (City) engaged Raftelis to conduct a water and wastewater cost of service study to develop a long-range financial plan and establish a proposed three-year schedule of water and wastewater rates through FY 2026-27. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing, and absent a majority protest by parcels served by the City. Proposition 218 requires that the City mail a public hearing notice detailing proposed rate changes no fewer than 45 days before the public hearing.

Study Objectives
The major objectives of this study are to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves.
» Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 19 Key Changes Since Prior Rate Study
Reduction in baseline water demand: One significant development affecting water demand is the enduring drought conditions in California, which have led to permanent reductions in baseline water consumption across the state. Specifically, the City has experienced a notable decrease of approximately 20% from historical average usage levels. Furthermore, since the last rate study, there has been a consistent decline in both per capita and per connection demands compared to historical baselines. As depicted in Figure 11, the annual water demand for the City exceeded 600 million gallons per year from 2017 to 2020 and has not rebounded over the past three years.

Figure 11: Historical Annual Water Usage (Million Gallons) Cost inflation: The City’s water and wastewater operations are impacted by increasing costs and shocks in system inputs like chemicals and labor. Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, and water supply. Overall, utility operating costs far outpace general inflation rates.
» Capital Expenditures: Many projects in the long-term Capital Improvement Program (CIP) previously included in the prior rate studies were deferred due to financial constraints.. Additionally, the City is facing increasing regulatory mandates to improve water filtration. These mandates include filtering for cryptosporidium and the potential treatment of Per- and Polyfluorinated Substances (PFAS) which requires additional CIP investment. Total CIP deferred projects total roughly $8.1 million excluding the possible cost of PFAS treatment.

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3.Legal Requirements and
Rate Setting Methodology

3.1.Legal Requirements
California Constitution - Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water and wastewater service are as follows:

1. A property-related charge (which include water or wastewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of the property.

5. No fee or charge may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

As stated in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition (Manual M1), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Raftelis follows industry standard rate setting methodologies set forth by the AWWA’s Manual M1 to ensure the water cost of service analysis presented in this study meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services on a parcel basis. The methodology in the Manual M1 is a nationally recognized industry ratemaking standard which courts have recognized as consistent with Proposition 218. Similarly, the wastewater cost of service presented in this study was conducted in accordance with principles established by the Water Environment Federation (WEF) and described in Financing and Charges for Wastewater Systems.

3.2.Rate-Setting Methodology
This study was conducted using industry-standard principles outlined by the AWWA’s Manual M1 and WEF’s Financing and Charges for Wastewater Systems. The process and approach Raftelis utilized in the study to determine rates is informed by the City’s policy objectives, the current system of rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plans, cost of service analyses, and rate design process follows five key steps, outlined below, to determine proposed rates that fulfill the City’s objectives, meet industry standards, and align with state law. The overall process outlined below applies to the Cost-of-Service analyses for both water and wastewater.

1. Financial Plan: The first study step is to develop a multi-year financial plan that projects the Water and Wastewater Enterprises’ revenues, expenses, capital project financing, annual debt service, and reserve Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 21 funding. The financial plan is used to determine revenue adjustments needed to recover adequate revenues to fully recover system costs.

2. Revenue Requirement Determination: After completing the financial plan, the rate-making process begins with the determination of the revenue requirement for the test year, also known as the Cost-of Service year.

The test year for this study is FY 2022-23. The revenue requirement should sufficiently fund the Water and Wastewater Enterprises’ operating costs, annual debt service (including coverage requirements), capital expenditures, and reserve funding needs.

3. Cost-of-Service Analysis: The annual cost of providing water or wastewater service (i.e. the revenue requirement) is then distributed to customer classes commensurate with their use of and burden on the system. A Cost-of-Service analysis involves the following steps:
» Functionalize costs – the different components of the revenue requirement are categorized into functions such as supply, transmission, storage, customer service, etc. (for water) and collection, treatment, customer, etc. (for wastewater)
» Allocate to cost causation components – the functionalized costs are then allocated to cost causation components such as supply, base delivery, peaking, etc. (for water) and flow, strength, etc. (for wastewater)
» Develop unit costs – unit costs for each cost causation component are determined using units of service
» Distribute cost components – the cost components are allocated to each customer class or tier using the unit costs in proportion to their demand and burden on the system.

A water cost of service analysis considers both the average water demand and peak demand. Peaking, or extra-capacity, costs are incurred during periods of peak consumption, most often coinciding with summer water use. There are additional capacity-related costs associated with designing, constructing, operating, maintaining, and replacing facilities to meet peak demand. Patterns of use impose additional costs on a water utility and are used to determine the cost burden on peaking-related facilities. Similarly, a wastewater cost of service analysis considers the amount of wastewater treatment plant influent contributed by each customer class to account for customer differences in the quantity and strength of wastewater discharges.

4. Rate Design: After allocating the revenue requirement to each customer class, the rate design and calculation process can begin. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should also support and optimize the City’s policy objectives.

5. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop the administrative record in conjunction with the rate adoption process. This report serves as the administrative record for this study. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.

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4.Water Rate Study

4.1.Key Inputs and Assumptions
Raftelis developed a water rate model to project financial calculations over the next ten fiscal years with projections shown in this report through the five-year rate-setting period of FY 2028-29 (i.e. the “study period”). While the study period consists of five years, the City is only considering three years of proposed rates for adoption at this time. The City’s fiscal year spans from July 1 through June 30. Projections in future years were generally made based on actual data for FY 2021-22 or FY 2022-23, or the adopted budget for FY 2023-24 using key assumptions outlined below. Assumptions were discussed with, and reviewed by, City of Healdsburg Public Works and Finance staff to ensure that the City water system’s unique characteristics are accurately accounted for. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

4.1.1.CURRENT WATER RATES
Table 4-1 shows the rates currently in effect from July 1, 2023, which were developed during the prior rate study in 2022. Customers are currently billed monthly for two primary charges: 1) Water Service Charges and 2) Water Volume Rates per hundred cubic feet (HCF)2 of water delivered. The Water Service Charge is a fixed monthly charge that varies based on meter size for non-residential customers, and per dwelling unit (DU) for residential customers. All customer classes are subject to a uniform Water Volume Rate. 2 One HCF equals approximately 748 gallons.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 23 Table 4-1: Current Water Rates Schedule
Description FY 2024
Residential Fixed Monthly Service Charge
Single Family $28.61
Single Family + ADU (per DU) $21.84
Multi-Family (Per DU) $17.01
Fixed Monthly Service Charges
Up to 1" $45.26
1 1/2" $86.90
2" $136.86
3" $253.46.
4" $419.91
6" $1,127.75
8" $1,502.45
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48
Tier 2 (6-10 HCF) $6.48
Tier 3 >10 HCF $6.48
Non-Residential Classes
Commercial $6.48
Industrial $6.48
Landscape $6.48
Riverview HOA1 $1.59

4.1.2.WATER ENTERPRISE FINANCIAL ASSUMPTIONS
Inflationary assumptions shown in Table 4-2 are used to escalate projected operations and maintenance (O&M) expenses beyond FY 2023-24. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI). Specifically, increases in salaries and cost-of-living adjustments (COLA) match the annual percentage changes in wages and salaries reported by the CPI. At the direction of city staff, adjustments for salary/employee benefits and electricity costs have been made. Electricity cost adjustments directly reflect the estimated rate increases provided by the city's electric suppliers. Utility costs have been updated to mirror the changes in fuel and utilities prices from October 2022 to October 2023, as indicated by the CPI. Capital expenses have been adjusted based on the three-year average from the Engineering News-Record (ENR).

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Table 4-2: Water Enterprise Inflationary Assumptions
Inflationary Categories FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Expenses
General Cost Inflation 3.7% 3.7% 3.7% 3.7% 3.7%
Salary / COLA 4.5% 4.5% 4.5% 4.5% 4.5%
Salary / Employee Benefits 7.0% 7.0% 7.0% 7.0% 7.0%
Utilities 5.2% 5.2% 5.2% 5.2% 5.2%
Capital 5.9% 5.9% 5.9% 5.9% 3.5%
Electricity 14.0% 8.0% 7.0% 5.0% 5.0%

4.1.3.PROJECTED WATER SERVICE CONNECTIONS
City staff provided Raftelis with the number of water meters by size for FY 2022-23. The City anticipates negligible growth for the foreseeable future, as the service area is mostly built-out and will not see significant increases in the number of meters for future years. As such, Raftelis used the current actual meter counts – shown below in Table 4-3 for all future years in the study.

Table 4-3: Current Metered Water Connections
Description
Current
Metered
Connections
Meter Sizes – Non Residential
1" 4,460
1 1/2" 132
2" 157
3" 26
4" 21
6" 0
8" 0
Total 4,796
Residential Monthly Meter Charge ADU’s
Single Family 3,856
Single Family + ADU (per DU) 490
Multi-Family (per DU) 1,094
Total 5,440
[1] Riverview HOA, Fitch Mtn. CSA, and reclaimed metered water are excluded from the cost of service because these rates are set by contract.

The rate revenues associated with these customers are used to offset the revenue requirement.

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4.1.4.PROJECTED WATER SALES
City staff provided Raftelis with total annual water use data by customer class for FY 2022-23. The City does not expect an increase in water use, and with the trend of conservation in the prior years it was decided to keep water use constant over the study period. Total water use is shown in hundred cubic feet (hcf), which is the billing unit.

Excluded from water usage shown below is reclaimed water, water sold to the Fitch Mountain Service Area, and Riverview HOA irrigation water. This excluded usage is provided under contract and not subject to the proposed rates within this study.

Table 4-4: Projected Water Demand Description Actual
FY 2023
Single Family 297,304
Multifamily 44,590
Commercial 122,377
Industrial 13,035
Landscape 42,040
Total 519,346

4.2.Water Financial Plan
Section 4.2 details the development of a proposed Water Enterprise financial plan for City of Healdsburg over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding through FY 2028-29. The overall purpose of the financial plan is to determine annual water rate revenues required to achieve sufficient cash flow, execute the capital program, maintain adequate reserves, and meet debt coverage requirements.

4.2.1.WATER ENTERPRISE REVENUE UNDER CURRENT RATES
The Water Enterprise’s revenue sources consist of water rates, miscellaneous fees, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current water rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any water rate increases. This status quo scenario provides a baseline from which Raftelis evaluates the need for revenue adjustments (i.e. gross rate revenue increases).

Projected Water Rate Revenues
Raftelis projected annual water rate revenues from Water Service Charges and Water Volume Rates over the study period based on current FY 2023-24 water rates. Per City direction, Raftelis projected rate revenues for future years using no account growth and constant water demand (as described above in Table 1-3 and Table 4-4). The resulting projected revenues under existing rates are shown below in Table 4-5.

Table 4-5: Projected Revenue from Existing Rates
Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Water Rate Revenues
Fixed $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 Variable $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 Total $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 Item 6.f
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Other Water Enterprise Revenues
Table 4-6 shows all other Water Enterprise revenues. All FY 2021-22 to FY 2023-24 other revenues are based on the City’s actual and budgeted revenues and those are kept constant throughout the forecasted study period with the exception of non-recurring transfer in FY 2023-24. Interest revenue is estimated in the financial plan model beginning in FY 2024-25 based on projected fund balances and the assumed interest rate.

Table 4-6: Other Water Enterprise Revenues
Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Water - Other Revenues
Interest Income $30,797 $26,967 $39,121 $36,903 $34,081 $34,921 Other Revenues $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Transfers In $422,161 $0 $0 $0 $0 $0
Total $462,958 $36,967 $49,121 $46,903 $44,081 $44,921
Summary of Projected Water Enterprise Revenues
Table 4-7 shows a summary of all projected Water Enterprise revenues under current rates over the study period.

This includes all projected revenues shown in Table 4-5 and Table 4-6. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 4-7: Summary of Projected Water Enterprise Revenues (Current Rates) Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Water Revenues
Water Sales Revenue $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 Fixed Charge Revenue $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 Interest Income $30,797 $26,967 $39,121 $36,903 $34,081 $34,921 Riverview HOA and Reclaimed
Revenue $142,781 $172,765 $207,318 $234,270 $262,382 $293,868 Other Revenue $432,161 $10,000 $10,000 $10,000 $10,000 $10,000 Total $6,270,254 $5,874,247 $5,920,954 $5,945,687 $5,970,978 $6,003,304

4.2.2.WATER ENTERPRISE OPERATIONS & MAINTENANCE EXPENSES Table 4-8 shows a summary of all Water Enterprise O&M expenses over the study period. Raftelis worked closely with City staff to determine reasonable inflationary assumptions that were then used to project O&M expenses through FY 2028-29. O&M expenses are projected to increase by approximately 5 percent per year on average over the study period – excluding the change from FY2023-24 to FY 2024-25 which is due to onetime expenses being removed. All O&M expense projections were provided by City in current dollars and adjusted by Raftelis for estimated future inflation.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 27 Table 4-8: Projected Water Enterprise O&M Expenses
O&M Expenses Budgeted
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Supply $760,318 $794,533 $830,287 $867,649 $906,694 $947,495 Reservoir $319,038 $341,371 $365,266 $390,835 $418,194 $447,467 Treatment $276,396 $288,196 $300,538 $313,449 $326,959 $341,098 Storage $239,936 $248,862 $258,119 $267,721 $277,681 $288,010 Distribution $130,253 $135,098 $140,124 $145,337 $150,743 $156,351 Fire $1,028,402 $1,077,081 $1,128,119 $1,181,633 $1,237,748 $1,296,593 Meters $453,957 $485,734 $519,735 $556,117 $595,045 $636,698 Customer $35,725 $37,291 $38,927 $40,634 $42,417 $44,279 Conservation $384,583 $398,971 $413,901 $429,392 $445,466 $462,145 General $1,668,899 $1,440,816 $1,511,069 $1,582,026 $1,736,804 $1,810,877 Total O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013

4.2.3.WATER ENTERPRISE DEBT
Table 4-9 shows the Water Enterprise’s projected debt service obligations over the study period. Existing debt service consists of the City’s 2005 and 2014 debt service. Proposed Water Enterprise debt service associated with future capital project costs are also shown beginning in FY 2029. Note that proposed debt service terms (inflation, loan duration, issuance cost) represent preliminary projections based on the best information available at the time of this study.

Table 4-9: Water Enterprise Debt Service
Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Existing Debt Service
Series 2005 D CSCDA
Revenue Bond $206,850 $204,475 $206,725 $208,475 $200,294 $202,200 Series 2014 Water
Refunding Bond $739,539 $575,420 $577,790 $423,547 $317,097 $315,411 Subtotal $946,389 $779,894 $784,515 $632,022 $517,391 $517,611 Proposed Debt Service
2027 Proposed Bonds $0 $0 $0 $0 $0 $758,333
Subtotal $0 $0 $0 $0 $0 $758,333
Total $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944

4.2.4.WATER ENTERPRISE CAPITAL IMPROVEMENT PROGRAM
Table 4-10 shows the City’s planned capital improvement program (CIP) for the Water Enterprise, amounting to approximately $28.2M over the five-year study period. No estimates were provided for FY 2023-24. The values shown are based on the most recently prepared multi-year CIP. To reduce immediate financial needs and financial impacts the CIP defers several infrastructure replacement projects for portions of the utility pipeline beyond their useful life. The plan further prioritizes the infrastructure rehabilitation and water treatment at the Dry Creek well Item 6.f
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field while deferring the water treatment of the Fitch well field. The City will discontinue use of the Fitch well field in FY 25-26 and will retain sufficient water supply to serve the Utility from the other remaining well fields. The deferral of these projects will not impact the immediate service provided by the Utility. Significant CIP expenditures are anticipated to continue over the next ten years, highlighting the need to maintain adequate reserves for future cash funded, and debt funded, CIP. Capacity-related project costs are not included in the CIP and revenue associated with capital recover fees are excluded from the revenue requirement.

Table 4-10: Water Enterprise Five-Year Capital Improvement Plan Project Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Cryptosporidium treatment At Fitch WTP $0 $0 $0 $0 $1,223,732 $0 Dry Creek WTP Upgrades - Cryptosporidium $0 $896,737 $0 $0 $0 $0 Dry Creek WTP Upgrades - Pumping and Clear well Improvements $0 $0 $0 $1,477,457 $0 $0 Dry Creek Wells Capacity Improvements $0 $0 $0 $0 $0 $1,456,416 Gauntlett WTP Membranes Replacement $0 $0 $0 $301,662 $319,376 $330,555 ASR Wells $0 $0 $0 $0 $0 $0
Fitch Treatment Building Modernization $0 $0 $0 $0 $0 $631,981 PFAS - Gauntlett $0 $0 $0 $0 $247,510 $4,057,160
PFAS - Fitch $0 $0 $0 $0 $262,587 $4,304,231
PFAS - Dry creek $0 $0 $0 $0 $255,049 $4,179,395
Dry Creek Chlorinator $0 $0 $0 $118,671 $0 $0
Fitch Chlorinator $0 $102,696 $0 $0 $0 $0
Gauntlett Reservoir Liner Replacement $0 $0 $0 $658,625 $0 $0 Passalacqua Pumps Rehab $0 $0 $0 $0 $0 $0
G2 Well Flow Meter $0 $0 $0 $100,871 $0 $0
PRV - North street $0 $0 $0 $0 $16,333 $0
PRV Villa Chanticleer $0 $0 $0 $0 $0 $16,905
PRV Latimer $0 $0 $0 $0 $0 $16,905
PRV Grant Street $0 $0 $0 $0 $0 $0
PRV Larkspur $0 $0 $0 $0 $0 $0
PRV Hidden Acres $0 $0 $0 $0 $16,333 $0
WTP Compressor #1 Replacement $0 $0 $0 $26,820 $0 $0
Water Treatment plant SCADA Computer $0 $7,411 $0 $0 $0 $0 Reconstruct Corp Yard Lift Station $0 $0 $0 $60,399 $0 $0 Gauntlett Well Field Pipeline Rehab/Replacement $0 $0 $0 $0 $273,895 $642,384 Fitch Well Field Pipeline Rehab/Replacement $0 $0 $0 $0 $591,763 $0 McDonough Water Transmission Main Replacement $0 $0 $0 $0 $182,052 $2,063,690 Brown Street Sewer & Water Replacement $0 $0 $1,330,576 $0 $0 $0 Reed Court & Bianca Lane Sewer & Water Replacement $0 $0 $0 $0 $0 $146,552 University Street Sewer & Water Replacement $0 $0 $128,258 $1,352,929 $0 $0 Healdsburg Ave Utility Replacement $0 $397,727 $0 $0 $0 $0 University Street Sewer and Water Replacement (North Street to Mason St) $0 $0 $0 $0 $0 $0 Johnson Street Sewer and Water $0 $0 $0 $0 $0 $0
Ongoing R&R $0 $0 $0 $0 $0 $0
Total CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $17,846,173 Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 29 Table 4-11 shows the funding plan for Water Enterprise CIP projects over the study period. As shown below, the City plans to fund its CIP projects through a combination of debt and cash-funding over the study period. Figure 4-1 shows a summary of total Water Enterprise CIP expenditures by funding source through FY 2028-29.

Table 4-11: Water Enterprise Capital Improvement Plan, by Funding Source Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Capital Improvement Plan
Rate Funded (PAYGO) $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 Debt Funded $0 $0 $0 $0 $0 $13,000,000
Total $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $17,846,173 Figure 4-1: Water Enterprise Capital Improvement Plan

4.2.5.WATER ENTERPRISE FINANCIAL POLICIES
Required Debt Coverage
The Water Enterprise is required to meet debt service coverage requirements on its outstanding water revenue bonds. Failure to meet debt service coverage results in a technical default, which without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance, or even denial of credit. The required debt coverage ratio is 1.20, meaning that the Water Enterprise’s net operating revenues (i.e. total revenues less operating expenses) must amount to at least 1.20 times the amount of annual debt service.

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Reserve Targets
Adequate cash reserves are required to meet operating, capital, and debt service requirements. The current operating reserve target is equal to 25% percent of annual O&M expenses. Raftelis recommends the City shift the reserve policy outlined in the previous study of establishing a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing them to support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. Furthermore, when the City undertakes the next rate studies and adopts the next rate plan, it’s recommended that the City consider funding an additional one-million-dollar rate stabilization reserve, which can be used to address major equipment failures and natural disasters. The change will mitigate otherwise higher rate increases over the study period.

Table 4-12 summarizes the Water Enterprise’s key financial policies relevant to this rate study. Table 4-13 shows projected operating and capital reserve targets over the study period based on the policies outlined above.

Table 4-12: Water Enterprise Financial Policies
Financial Policy Target/Requirement
Debt Coverage
Target Debt Coverage Ratio 1.20
Reserve Targets
Operating Reserve Target 25% of annual O&M expenses
Rate Stabilization Target $1,000,000
Total Reserve Target 25% of annual O&M expenses + $1 million Table 4-13: Projected Water Enterprise Reserve Targets
Reserve Target FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Operating Reserve $1,324,377 $1,311,988 $1,376,521 $1,443,698 $1,534,437 $1,607,753 Rate Stabilization $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Total Reserve Target $2,324,377 $2,311,988 $2,376,521 $2,443,698 $2,534,437 $2,607,753 Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 31

4.2.6.STATUS QUO WATER FINANCIAL PLAN
To evaluate the need for revenue adjustments (i.e. increases to gross rate revenues), Raftelis first developed a status quo financial plan. The status quo financial plan assumes that current rates remain unchanged over the study period. Table 4-14 combines projected water rate revenues (from Table 4-5), O&M expenses (from Table 4-8), and debt service (from Table 4-9) to generate operating cash flow projections under the status quo. In the absence of any revenue adjustments, the Water Enterprise will fail to generate sufficient revenue to recover O&M expenses and debt service, and net cash generation becomes increasingly negative in subsequent years.

Table 4-14: Water Enterprise Cash Flow – Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Water Rate Revenue under Current Rates
2 Water Rates Subject to
Revenue Adjustments $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 3 Non-Rate Revenues3$605,739 $209,732 $256,440 $281,173 $306,463 $338,789 4 Total Revenues $6,270,254 $5,874,247 $5,920,954 $5,945,687 $5,970,978 $6,003,304 5 6 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 7 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 8 Rate-Funded CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 9 Total Expenses $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 24 25 Net Cash Flow4$26,358 ($1,558,171) ($1,828,479) ($4,558,561) ($4,072,793) ($6,549,826) 3 Includes miscellaneous revenues and interest income. Note that grant and loan revenue and the capital projects associated with them are excluded in this cashflow on both the revenue and expense side of the calculation. 4 Equal to [Line 18 – Line 23].

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Table 4-15 shows projected reserve balances and debt coverage under the status quo financial plan for the entire Water Enterprise. Sources of funds include both rate revenues and non-rate revenues, but do not include revenues from projected rate increases. Use of funds include O&M expenses (from Table 4-8), debt service (from Table 4-9), and CIP expenditures (from Table 4-11). The FY 2023-24 beginning balance reflects actual Water Enterprise reserve balances as of July 1, 2023. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 4-13.

Under the status-quo financial plan, reserves are projected to fall below target by the end of FY 2024-25. Debt coverage is projected to fall well below the required ratio in all years following FY 2024-25. The status quo financial plan is insufficient to meet the Water Enterprise’s financial needs over the study period. This demonstrates a clear need for revenue adjustments over the study period to increase rate revenues and ensure financial sustainability.

Table 4-15: Water Enterprise Pro Forma - Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Projected Beginning
Balance $2,055,607 $2,081,965 $523,793 ($1,304,685) ($5,863,246) ($9,936,039) 2 3 Source of Funds
4 Status Quo Rate Revenues $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 5 Other Revenues $605,739 $209,732 $256,440 $281,173 $306,463 $338,789 9 Total Source of Funds $6,270,254 $5,874,247 $5,920,954 $5,945,687 $5,970,978 $6,003,304 10 11 Use of Funds
12 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 13 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 14 Rate-Funded CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 15 Total Use of Funds $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 16 17 Net Cashflow $26,358 ($1,558,171) ($1,828,479) ($4,558,561) ($4,072,793) ($6,549,826) 18 19 Projected Ending Balance5$2,081,965 $523,793 ($1,304,685) ($5,863,246) ($9,936,039) (16,485,866) 20 Operating Reserve Target $1,324,377 $1,311,988 $1,376,521 $1,443,698 $1,534,437 $1,607,753 21 22 Debt Coverage
23 Projected Debt Coverage6 1.03 0.80 0.53 0.27 (0.32) (0.34) 24 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20

4.2.7.PROPOSED WATER FINANCIAL PLAN
The Water Enterprise must increase its revenues from water rates over the study period to adequately fund its operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding. Raftelis worked closely with City staff to identify financial plan options for the City Council’s consideration. The selected option of proposed annual revenue adjustments are shown in Table 4-16. Revenue adjustments represent annual percent increases in total rate revenue relative to rate revenue generated by the prior year’s water rates. The proposed first-rate increase implementation date is July 1, 2024.
5 Equal to [Line 1 + Line 17]
6 Equal to [(Line 9 – Line 12) ÷ Line 13]
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 33 Table 4-16: Proposed Water Enterprise Revenue Adjustments

PROPOSED INCREASE FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 21.0% 20.0% 13.0% 12.0% 12.0%
Table 4-17 combines projected rate and miscellaneous revenues (from Table 4-7), O&M expenses (from Table 4-8), and debt service (from Table 4-9) to generate operating cash flow projections under the proposed financial plan. By implementing the proposed revenue adjustments, we project that Water Enterprise will maintain sufficient operating cash flow through the end of the study period.

Table 4-17: Water Enterprise Cash Flow – Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Water Rate Revenue under Current Rates
2 Water Rates Subject to
Revenue Adjustments $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 3 Non-Rate Revenues7$605,739 $209,732 $256,440 $281,173 $306,463 $338,789 4 Revenue Adjustments
5 Fiscal Year
6 FY 2025 21.00% $1,189,548 $1,189,548 $1,189,548 $1,189,548 $1,189,548 7 FY 2026 20.00% $1,370,813 $1,370,813 $1,370,813 $1,370,813 8 FY 2027 13.00% $1,069,234 $1,069,234 $1,069,234
9 FY 2028 12.00% $1,115,293 $1,115,293
10 FY 2029 12.00% $1,249,128
11 Total Adjustments $0 $1,189,548 $2,560,361 $3,629,595 $4,744,888 $5,994,016 12 13 Total Revenues $6,270,254 $7,063,795 $8,481,315 $9,575,282 $10,715,866 $11,997,320 14 15 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 16 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 17 Rate-Funded CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 18 Total Expenses $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 19 20 Net Cash Flow8$26,358 ($368,623) $731,882 ($928,967) $672,095 ($555,811) Table 4-18 shows projected reserve balances and debt coverage under the proposed financial plan for the entire Water Enterprise. Sources of funds include status quo revenues (from Table 4-7), revenue adjustments (from Table 4-17), and miscellaneous revenues. Use of funds include O&M expenses (from Table 4-8), debt service (from Table 4-9), and rate-funded CIP expenditures (from Table 4-11). The 2024 beginning balances reflects actual Water Enterprise reserve balances as of July 1, 2023. All ending balance and debt coverage figures are projected values.

Target reserve balances shown are from Table 4-13. Under the proposed financial plan, reserve balances and debt coverage are projected to achieve target policies over the rate-setting period. 7 Includes miscellaneous revenues, interest income, and loan/grant revenues. 8 Equal to [Line 13 – Line 18].

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Table 4-18: Water Enterprise Pro Forma - Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Beginning Balance $2,055,607 $2,081,965 $1,713,342 $2,445,224 $1,516,257 $2,188,352 2 3 Source of Funds
4 Rate Revenues (including
adjustments) $5,664,515 $6,854,063 $8,224,875 $9,294,109 $10,409,402 $11,658,531 5 Other Revenues $605,739 $209,732 $256,440 $281,173 $306,463 $338,789 9 Total Source of Funds $6,270,254 $7,063,795 $8,481,315 $9,575,282 $10,715,866 $11,997,320 10 11 Use of Funds
12 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 13 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 14 Capital Improvement Plan
Expenditures $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 15 Total Use of Funds $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 16 17 Ending Balance9
$2,081,965 $1,713,342 $2,445,224 $1,516,257 $2,188,352 $1,632,541 18 Operating Reserve Target $1,324,377 $1,311,988 $1,376,521 $1,443,698 $1,534,437 $1,607,753 19 20
21 Debt Coverage
22 Projected Debt Coverage10 1.03 2.33 3.79 6.01 8.85 4.36 23 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20 Figure 4-2 shows projected debt coverage (blue line) relative to the debt coverage requirement (grey line) all years after the initial rate-setting year (FY 2024-25). The City will begin meeting its debt coverage requirement of 1.20 in FY 2025 and remain above the minimum coverage requirement for the remainder of the study period. 9 Equal to [Line 1 + Line 9 – Line 15].
10 Equal to [(Line 9 – Line 12) / Line 13].

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 35 Figure 4-2: Proposed Water Financial Plan – Projected Debt Coverage Item 6.f
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Figure 4-3 shows the Water Enterprise’s projected ending balances under the proposed financial plan. The light blue bars indicate the ending balance. The minimum reserve targets (based on the policies described above in Table 4-12) are shown by the orange line The Water Enterprise is projected to meet cash reserves over the study period and any additional reserves are used to offset capital expenses in the future years. The Water Enterprise’s reserves are projected to achieve the minimum goal target amount with the proposed and planned rate increases.

Figure 4-3: Proposed Water Financial Plan – Projected Ending Cash Balances Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 37 Figure 4-4 shows the proposed versus status quo operating financial plan. Revenues under the status quo and proposed financial plans are represented by the blue and blacklines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

Figure 4-4: Proposed vs. Status Quo Water Financial Plan Item 6.f
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4.3.Proposed Water Rate Structure Modifications
Raftelis worked closely with City staff to evaluate potential changes to the existing water rate structure. All proposed water rates presented in subsequent sections incorporate the following recommended revisions to the existing water rate structure.
o Residential Tiered Water Rates: The Study recommends that the City introduce a three-tiered rate structure for Residential water customers including Single-Family Residential (SFR) and Multi-Family Residential (MFR). MFR customers will receive tier allotments for each dwelling unit served. Tier 1 is defined as the first 5 units of water (HCF) per monthly billing period, reflecting average winter usage (January -March) for SFR customer rounded up to the nearest whole number. Tier 2 encompasses usage greater than 5 units and up to and including 10 HCF, representing summer peak (75th percentile in the July – September periods) demands of SFR customers rounded up to the nearest whole number. Tier 3 comprises all units of water usage exceeding 10 HCF. Residential users are a homogenous customer class with similar indoor needs for health and sanitation, similar outdoor irrigation needs, and similar seasonality in these demand patterns. It is therefore appropriate to tier this class of customers. The proposed monthly allotments for residential customers are shown below in Table 1-2 and reflect actual demand patterns of City water users. Note that non-residential customers will maintain a uniform rate structure.
o All Other Classes: The Study recommends that all other customer classes maintain a uniform rate structure, however, going forward each class will have a distinct uniform rate based on their specific demand characteristics. The new rates by customer class include those customers designated as Commercial, Industrial, and Landscape Irrigation. Non-residential classes have highly varying demand patterns within each class based on the type of business, seasonality, and/or transient effects. Peaking costs, also referred to as extra capacity costs, are costs associated with higher demand patterns. These costs are allocated to each customer class based on their specific class demand patterns and calculating peaking. For this reason, uniform rates are proposed for each of the non-residential classes.
» Monthly Service Charges: The Study recommends harmonizing the fixed service charges across user classes. This change will align Residential customers with a metered connection of a specific size with Non-Residential customers with the same size meter. The proposed structure relies on meter size alone to distinguish the “class” of customer. This change acknowledges that meter capacity, not customer classification, reflects the best estimate of the costs imposed by a user on the water system that are recovered through fixed charges.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 39 Table 4-19: Proposed Water Rate Structure Changes
Description Current Structure Proposed Structure
Residential (SFR/MFR)
Tier 1 Uniform Water Use
Rate (All Classes)
0-5 HCF
Tier 2 Uniform Water Use
Rate (All Classes)
6-10 HCF
Tier 3 Uniform Water Use
Rate (All Classes)
>10 HCF
Non-Residential Classes
Commercial Uniform Water Use
Rate (All Classes)
Uniform Water Use
Rate, by Class
Industrial Uniform Water Use
Rate (All Classes)
Uniform Water Use
Rate, by Class
Landscape Irrigation Uniform Water Use
Rate (All Classes)
Uniform Water Use
Rate, by Class
Table 4-20 shows estimated water use by tier under the proposed two-tier rate structure. All projections are based on detailed account-level analysis of FY 2022-23 actual water use. Raftelis projects that approximately 64% of all residential water use will fall within Tier 1 under the proposed three-tier residential rate structure.

Table 4-20: Projected Water Use by Class and Tier – Test Year Description
Projected
FY 2024-25
Water Use
(hcf)
Residential
Tier 1 217,661
Tier 2 62,452
Tier 3 61,781
Subtotal 341,894
Commercial 122,377
Industrial 13,035
Landscape 42,040
Total 519,346

4.4.Water Cost of Service Analysis
This section details the Cost-of-Service (COS) analysis performed for the Water Enterprise. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the water system. This provides the basis for the development of proposed water rates through FY 2028-29.

4.4.1.METHODOLOGY
The first step in a COS analysis is to determine the revenue required from water rates. The total revenue requirement results from the financial plan in Section 4.2. The framework and methodology utilized to develop the COS analysis Item 6.f
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and to apportion the revenue requirement to each customer class and tier is informed by the processes outlined in the AWWA’s Manual M1.

COS analyses are tailored to meet the specific needs of each water system. However, there are four distinct steps in every COS analysis to recover costs from customers in an accurate, equitable, and defensible manner:

1. Cost functionalization: O&M expenses and capital assets are categorized by their function in the system.

Sample functions may include water supply, treatment, distribution, transmission, customer service, etc.

2. Cost causation component allocation: Functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include water supply, base delivery, extra-capacity, meters, and customer, among others. The revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Unit cost development: The revenue requirement for each cost causation component is divided by the appropriate units of service to determine the unit cost of each.

4. Revenue requirement distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component to customer classes based on each customer class’s individual service units.

This method of functionalizing costs is consistent with the AWWA’s Manual M1 and is widely used in the water industry to perform COS analyses.

4.4.2.WATER RATE REVENUE REQUIREMENT
Table 4-21 shows the rate revenue requirement for FY 2024-25 (referred to throughout as the “test year”). The revenue requirement is divided into operating and capital categories (Columns C and D), which are later allocated based on either O&M expenses or capital assets. The revenue requirements (Lines 2-8) are equal to FY 2024-25 operating expenses, rate-funded CIP, and debt service costs. The revenue offsets (Lines 11-16) include miscellaneous rate revenue not subject to revenue adjustments, grants, and income from loans. These revenues are applied as offsets to the final rate revenue requirement. The reserve transfer adjustment (Line 19) is equal to FY 2024-25 negative net operating cash flow and represents the additional rate revenue required to offset reserve spending in the test year. All values are from the proposed financial plan operating cash flow (Table 4-17). Note that, because there is no adjustment in the test year (FY 2024-25), there is also no adjustment for a mid-year increase. Rate adjustments will instead begin after the test year, in FY 2024-25. The final rate revenue requirement (Line 24) is calculated as follows:

Total revenue required from rates (Line 24) = Revenue requirements (Line 8) - Revenue offsets (Line 16) - Adjustments (Line 21) Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 41 Table 4-21: Water Enterprise Rate Revenue Requirement (Test Year) [A] [B] [C] [D] [F]
Line Description
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Total
1 Revenue Requirements
2 O&M Expenses $5,247,953 $0 $5,247,953
6 Debt Service $0 $779,894 $779,894
7 Capital Expenditures - PAYGO $0 $1,404,571 $1,404,571 8 Total Revenue Requirements $5,247,953 $2,184,465 $7,432,418 9 10 Less Revenue Offsets
11 Miscellaneous Revenues -$182,765 $0 -$182,765
12 Interest Income – General -$26,967 $0 -$26,967
13 Total Revenue Offsets -$209,732 $0 -$209,732
14 15 Less Adjustments -$368,623 $0 -$368,623
16 Adjustment for Cash Balance $0 $0 $0
17 Adjustment for Mid-Year Increase
18 Total Adjustments -$368,623 $0 -$368,623
19 20 Total Revenue Requirement Without Offsets $5,247,953 $2,184,465 $7,432,418 21 Total Revenue Requirement $4,669,598 $2,184,465 $6,854,063

4.4.3.WATER SYSTEM PEAKING FACTORS
A significant portion of the costs of the water system are based on the peaking characteristics of the different customer classes. A water system is designed to meet different requirements, including average water demands, extracapacity/peak demands, and fire flow requirements. Peaking costs are divided into maximum day (Max Day) and maximum hour (Max Hour) demand. The Max Day demand is the maximum amount of water used in a single day over a full year. The Max Hour demand is the maximum use in an hour on the Max Day. For example, storage and treatment components of the water system are designed to handle Max Day requirements while the distribution system is designed for Max Hour demands.

Table 4-22 shows system-wide peaking factors for the City’s water system, which are used to derive the cost component allocation bases for Base Delivery, Max Day, and Max Hour costs. Base Delivery use is considered average daily demand over one year, which has been normalized to a factor of 1.00 (Column C, Line 1). The Max Day peaking factor (Column C, Line 2) indicates that the Max Day demand is 1.90 times greater than the average daily demand. Similarly, the Max Hour peaking factor (Column C, Line 3) shows that the Max Hour demand is

3.20 times greater than average demand. The allocation bases (Columns D-F) are calculated using the equations outlined below. Columns are represented in these equations as letters, and lines are represented as numbers. For example, Column D, Line 2 is shown as D2.

The Max Day allocations are calculated as follows:
» Base Delivery: C1 / C2 x 100% = D2
» Max Day: (C2 - C1) / C2 x 100% = E2
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The Max Hour allocations are calculated as follows:
» Base Delivery: C1 / C3 x 100% = D3
» Max Day: (C2 - C1) / C3 x 100% = E3
» Max Hour: (C3 - C2) / C3 x 100% = F3
Table 4-22: Water System Peaking Factors and Allocations [A] [B] [C] [D] [E] [F] [G]
Line Description Factor11 Base Max Day Max Hour Total
1 Base 1.00 100% 0% 0% 100%
2 Max Day 1.90 53% 47% 0% 100%
3 Max Hour 3.20 31% 28% 41% 100%
4 Average Max Day/Max Hour 42% 38% 20% 100%

4.4.4.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES
After determining the revenue requirement and systemwide peaking allocation basis, the next step of the water COS analysis is to allocate O&M expenses and capital assets to the following functional categories:
» Water Supply: costs associated with the utilities supply of water » Treatment: costs associated with treating water to drinking water standards » Storage: costs related to water storage tanks and reservoirs » Distribution: costs related to delivering water to customers through pipelines from storage facilities to the metered connection
» Fire Protection: costs attributable to fireflow sizing for fire protection » Meters: costs of meter maintenance, servicing, and repair » Customer: costs of meter reading, billing, and other customer service functions » Conservation: costs associated with water conservation, outreach, and efficiency programs » General: operating costs not directly attributable to the above functions are allocated based on the overall cost functionalization
The functionalization of costs allows for the allocation of costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include:
» Water Supply: directly associated with the Water Supply functional category » Base Delivery: costs associated with providing water under average water demand conditions » Peaking (Max Day and Max Hour): extra-capacity costs associated with providing water during peak demand conditions
» Fire Protection: costs associated with providing fire flow capacity for fire protection » Meters: directly associated with the Meters functional category » Customer: directly associated with the Customer functional category » Conservation: directly associated with the Conservation functional category » General: directly associated with the General/Admin functional category » Revenue Offsets: miscellaneous revenues applied as offsets to the rate revenue requirement 11 Max Day and Max Hour assumptions were developed from the City’s most recent master plan, which was completed in 2016 and summarized peak data from 2010 to 2014. 5-year average peaks were used for this study.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 43 Table 4-23 shows the basis for allocating each functional category to the various cost causation components. This provides the basis for allocating O&M and capital expenses in the following subsections. Most functional categories are allocated entirely to the corresponding cost causation component. The allocation basis for functional categories not allocated entirely to a single cost causation component is as follows:
» Functional categories allocated based on Max Day demand: Storage, treatment, and transmission infrastructure is designed to accommodate maximum day water demand. Therefore, all Storage, Treatment, Storage/Treatment, and Transmission costs are allocated to the Base Delivery and Max Day cost causation components based on the Max Day allocation from Table 4-22. » Functional categories allocated based on Max Hour demand: Distribution infrastructure is designed to accommodate maximum hour water demand, therefore all Distribution costs are allocated to the Base Delivery, Max Day, and Max Hour cost causation components based on the Max Hour allocation from Table 4-22.

Table 4-23: Allocation of Functional Categories to Water Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Line Functional
Category Base Max Day
Max
Hour Supply Conservation Meters Customer General Total
1 Water Supply 0% 0% 0% 100% 0% 0% 0% 0% 100%
2 Treatment 53% 47% 0% 0% 0% 0% 0% 0% 100%
3 Storage 53% 47% 0% 0% 0% 0% 0% 0% 100%
4 Distribution 31% 28% 41% 0% 0% 0% 0% 0% 100%
5 Fire12 42% 38% 20% 0% 0% 0% 0% 0% 100%
6 Meters 0% 0% 0% 0% 0% 100% 0% 0% 100%
7 Customer 0% 0% 0% 0% 0% 0% 100% 0% 100%
8 Conservation 0% 0% 0% 0% 100% 0% 0% 0% 100%
9 General 0% 0% 0% 0% 0% 0% 0% 100% 100%
12 Fire expenses are reallocated from max day and max hour to meter for public fire protection based on system capacity required for fire vs customer demand.

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4.4.5.WATER ENTERPRISE O&M EXPENSE ALLOCATION
The next step of the COS analysis is to develop an allocation basis for the operating revenue requirement based on the functionalization of the Water Enterprise’s O&M expenses. Raftelis worked with City staff to assign O&M expenses, by line item, to the most closely associated functional category. Table 4-24 shows a summary of FY 2024- 25 O&M expenses by functional category. This intermediate step is necessary to allocate total O&M expenses to individual cost causation components.

Table 4-24: Water Enterprise O&M Expenses by Functional Category [A] [B] [C] [D]
Line Functional Category FY 2024-25
O&M Expenses Percent of Total
1 Water Supply $436,652 8.3%
2 Treatment $2,142,743 40.8%
3 Storage $108,073 2.1%
4 Distribution $1,398,346 26.6%
5 Meters $345,839 6.6%
6 Customer $286,181 5.5%
7 Conservation $31,116 0.6%
8 General $499,003 9.5%
9 Total O&M Expenses $5,247,953 100%
Table 4-25 shows the allocation of FY 2024-25 O&M expenses by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-J) to the various cost causation components were determined in Table 4-23. Total O&M expenses associated with each functional category (Column K) were determined in Table 4-24. The total dollar amount allocated to each cost causation component (Line 9) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

Table 4-25: Allocation of Water Enterprise O&M Expenses to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Line Functional
Category Base Max
Day
Max
Hour Supply Conservation Meters Customer General Total
O&M
1 Water
Supply $0 $0 $0 $436,652 $0 $0 $0 $0 $436,652
2 Treatment $1,127,759 $1,014,983 $0 $0 $0 $0 $0 $0 $2,142,743 3 Storage $56,881 $51,192 $0 $0 $0 $0 $0 $0 $108,073
4 Distribution $436,983 $393,285 $568,078 $0 $0 $0 $0 $0 $1,398,346 5 Meters $0 $0 $0 $0 $0 $345,839 $0 $0 $345,839
6 Customer $0 $0 $0 $0 $0 $0 $286,181 $0 $286,181
7 Conservation $0 $0 $0 $0 $31,116 $0 $0 $0 $31,116
8 General $0 $0 $0 $0 $0 $0 $0 $499,003 $499,003
9 Total O&M $1,621,623 $1,459,461 $568,078 $436,652 $31,116 $345,839 $286,181 $499,003 $5,247,953 10 11 O&M
Allocation 30.9% 27.8% 10.8% 8.3% 0.6% 6.6% 5.5% 9.5% 100% Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 45

4.4.6.WATER ENTERPRISE CAPITAL ALLOCATION
Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. Use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall water asset base, however, is considerably stable in the long-term, and therefore is more representative of long-term capital investment in the City’s water system. Thus, functionalized capital assets are used to allocate capital costs.

City staff provided Raftelis with a detailed capitalized asset database that included the original cost of each individual asset. Raftelis calculated the replacement cost less depreciation (RCLD) of each asset based on net book value using the Engineering News-Record’s 20-City Average Cost Construction Index (CCI) to account for capital cost inflation. As part of the capital asset analysis and with assistance from City staff, Raftelis assigned each individual asset to a functional category. Total water asset value (RCLD) by functional category is shown in Table 4-26. Percentages are rounded to the nearest one-tenth of one percent.

Table 4-26: Summary of Water Enterprise Capital Assets by Functional Category [A] [B] [C] [D]
Line Functional Category Asset Value
(RCLD) Percent of Total
1 Water Supply $0 0%
2 Treatment $6,600,000 31%
3 Storage $900,000 4%
4 Distribution $9,535,414 44%
5 Fire $4,407,417 21%
6 Meters $11,648 0%
7 Customer $0 0%
8 Conservation $0 0%
9 General $0 0%
10 Customer $0 0%
11 Total Asset Value (RCLD) $21,454,479 100%
Table 4-27 shows the allocation of capital assets by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-J) to the various cost causation components was determined in Table 4-23. Total asset value associated with each functional category (Column K) was determined in Table 4-26. The total dollar amount allocated to each cost causation component (Line 10) is determined by multiplying the total asset value associated with each functional category by the corresponding percentage allocation and summing across all functional categories. This is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 4-25 (described in detail in Section 4.4.5). The initial capital allocation percentages (Line 12) represent the proportion of total capital assets allocated to each cost causation component (Line 10). The total capital revenue requirement (Column K, Line 14) equals the capital revenue requirement from Table 4-21, Column D, Line 21.

Table 4-27: Allocation of Functionalized Water Capital Assets to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Line Functional
Category Base Max
Day
Max
Hour Supply Conservation Meters Customer General Asset
Value
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(RCLD)
1 Supply $0 $0 $0 $0 $0 $0 $0 $0 $0
2 Treatment $3,473,684 $3,126,316 $0 $0 $0 $0 $0 $0 $6,600,000 3 Storage $473,684 $426,316 $0 $0 $0 $0 $0 $0 $900,000
4 Distribution $2,979,817 $2,681,835 $3,873,762 $0 $0 $0 $0 $0 $9,535,414 5 Fire $1,848,505 $1,663,655 $895,257 $0 $0 $0 $0 $0 $4,407,417 6 Meters $0 $0 $0 $0 $0 $11,648 $0 $0 $11,648
7 Customer $0 $0 $0 $0 $0 $0 $0 $0 $0
8 Conservation $0 $0 $0 $0 $0 $0 $0 $0 $0
9 General $0 $0 $0 $0 $0 $0 $0 $0 $0
10 Total Assets $8,775,691 $7,898,122 $4,769,019 $0 $0 $11,648 $0 $0 $21,454,479 11 12 Capital
Allocation 40.9% 36.8% 22.2% 0.0% 0.0% 0.1% 0.0% 0.0% 100.0% 13 14
Capital
Revenue
Requirement $893,529 $804,176 $485,575 $0 $0 $1,186 $0 $0 $2,184,465 Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 47

4.4.7.PEAKING UNITS OF SERVICE
Peaking units of service are developed to calculate unit peaking costs (Max Day and Max Hour) for each customer class and tier and provide a basis to reallocate the extra-capacity costs of Fire Protection in subsequent steps of the COS analysis. Fire protection, like hydrants, contribute to system capacity-related costs (i.e. peaking costs), and therefore are reallocated a portion of Max Day and Max Hour costs.

Table 4-28 shows the calculation of peaking units of service for non-fire related water service. These calculations attribute peaking costs to specific customer classes based on actual water use patterns. Raftelis estimates Max Day (Column E) and Max Hour (Column H) factors based on actual FY 2022-23 water use and system-wide peaking factors (from Table 4-22). The Max Day factor is derived using the max month factor calculated from the customer billing data. Utilizing the actual water use data, organized by billing period, and accounting for use by class and tier, Raftelis derives a ratio of maximum period to average period. This ratio becomes the proxy for the max day factor.

The Max Hour factor is the max day ratio multiplied proportionally by the ratio of system max hour to max day.

Projected FY 2022-23 water use in Column C (from Table 4-4) is divided by 365 days to determine average daily water use (Column D). Average daily use in Column D is then multiplied by the Max Day factor (Column E) to determine Max Day demand (Column F). Max Day requirements (Column G) are determined by subtracting average daily water use (Column D) from Max Day demand (Column F). Max Hour requirements (Column J) are similarly calculated. Max Hour demand (Column I) equals average daily water use (Column D) multiplied by the Max Hour factor (Column H). Max Hour requirements (Column J) equal Max Hour demand (Column I) less Max Day demand (Column F).

Table 4-28: Peaking Units of Service by Customer Class
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J]
Line Customer
Class
Annual
Water
Use
(hcf)
Average
Daily
Water
Use (hcf)
Max
Day
Factor
Max Day
Demand
(hcf/day)
Max Day
Requirements
(hcf/day)
Max
Hour
Factor
Max
Hour
Demand
(hcf/day)
Max
Hour
Requirements
(hcf/day)
1 Residential
2 Tier 1 217,661 596 1.12 669 72 1.89 1,126 457
3 Tier 2 62,452 171 1.53 261 90 2.57 440 179
3 Tier 3 61,781 169 1.97 333 164 3.31 561 228
4 Subtotal 341,894 937 1.35 1,263 326 2.27 2,127 864
5 6 Non-Residential
7 Commercial 122,377 335 1.35 452 117 2.27 761 309
8 Industrial 13,035 36 1.74 62 27 2.94 105 43
9 Landscape 42,040 115 2.08 239 124 3.50 403 164
10 Total 519,346 1,423 2,016 593 3,396 1,380
Table 4-29 shows the methodology13 used to calculate peaking units of service associated with fire protection based on a hypothetical fire duration and flow rate in gallons per minute (gpm):

Max Day Requirements (HCF/day) = Duration of Fire (hrs) × Water Use Rate (gpm) × 60 mins/hr ÷ 748.05 gallons/HCF Max Hour Requirements (HCF/day) = [Water Use Rate (gpm) × 60 mins/hr × 24 hrs/day ÷ 748.05 gallons/HCF] – Max Day Requirements (HCF/day)
13 Per the AWWA Manual M1.

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Table 4-29: Fireflow Analysis
[A] [B] [C]
Line Description Value
1 Duration of Fire (Hours) 2.0
2 Water Use Rate (gallons per minute) 1,500
3 Max Day Requirements (HCF/Day) 241
4 Max Hour Requirements (HCF/Day) 2,647
Table 4-30 shows the distribution of Fire Protection Max Day and Max Hour requirements (from Table 4-29) to customer Max Day and Max Hour requirements (Table 4-28) to determine the proportion of system capacity reserved for fire protection.

Table 4-30: Allocation of Peaking Units to Fire Protection [A] [B] [C] [D]
Line Description Max Day Max Hour
1 Fire Protection Capacity Requirements 241 2,647
2 Customer Demand Capacity Requirements 593 1,380
4 Total Capacity Requirements 834 4,027
5 6 Proportion of System Capacity
Fire Protection Capacity 28.9% 65.7%
Customer Demand Capacity 71.1% 34.3%
6 Total 100.0% 100.0%
Peaking units of service (from Table 4-28 and Table 4-30) are summarized below in Table 4-31. The percentage of Max Day and Max Hour Requirements attributed to each customer class is shown in Columns D and F respectively.

Table 4-31: Summary of Total Customer Demand Peaking Units [A] [B] [C] [D] [E] [F]
Line Customer Class
Max Day
Requirements
(HCF/Day)
% of Max Day
Requirements
Max Hour
Requirements
(HCF/Day)
% of Max Hour
Requirements
1 SFR
2 Tier 1 72 9% 457 11%
3 Tier 2 90 11% 179 4%
4 Tier 3 164 20% 228 6%
5 Subtotal 326 39% 864 21%
6 7 Non-Residential
8 Commercial 117 14% 309 8%
9 Industrial 27 3% 43 1%
10 Landscape 124 15% 164 4%
11 Fire Capacity 241 29% 2,647 66%
12 Total 593 100% 1,380 100%
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 49

4.4.8. DEVELOPMENT OF UNIT COSTS
The next step in the COS is to allocate total revenue requirement costs to cost components using the allocation methods developed above in Table 4-23,
Table 4-25, and Table 4-27. These costs include FY 2024-25 operating expenses, capital expenditures, and revenue offsets (including miscellaneous revenues, and loan/grant revenues for FY 2024-25). The total revenue requirement (including operating expenses, capital expenses, and revenue offset) is distributed to cost causation components based on the allocation percentages described above.

Table 4-32: Allocation of Revenue Requirement to Cost Components [A] [B] [C] [D]
Line Description Test Year Revenue
Requirement Allocation Basis
1 Operating Expenses $4,669,598 O&M (see
Table 4-25)
2 Capital Expenses $2,184,465 Capital allocation (see Table 4-27) 3 Total Revenue Requirement $6,854,063
he allocations above provide the basis for the adjusted COS shown below in line 1 of the table. These costs are then divided by relevant units of service (total water use, max day/hour use, equivalent meters, or annualized bills) to produce the unit cost shown below in line 6. In the next section, these unit costs are applied to customer classes based on each classes’ respective units of service.

Table 4-33: Derivation of Cost-of-Service Unit Rates
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L]
Lin
e
Descriptio
n
Base Max
Day
Max
Hour Supply Conservation Meters Customer
Fire General Total
1 Total
Adjusted
COS
$2,498,279 $959,798 $217,831 $415,443 $29,605 $2,460,826 $272,280 $014 $015 $6,854,063 2 3 Units of
Service 519,346 593 1,380 519,346 519,346 67,234 57,552 0 57,552 4 Units hcf hcf hcf/day hcf/day hcf equivale
nt meters
annuali
zed bills
Fire
Capacity
annualiz
ed bills
5 6 Unit Cost $4.81 $1,617.6
4 $157.91 $0.80 $0.06 $36.60 $4.73 $0.00 $0.00
7 Units $/hcf $/hcf $/hcf/d
ay
$/hcf/d
ay
$/private
fire lines
$/equiva
lent
meters
$/annu
alized
bills
$
hcf/day
$/annual
ized bills
14 Public fire costs are reallocated to the meter component and recovered from the meter service charges, by meter size. 15 Per industry standard, general costs are reallocated proportionally to the other cost components.

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4.4.9.WATER COST ALLOCATION TO CUSTOMER CLASSES
The final cost of service allocation determines how much revenue must be recovered from the City’s water rates and charges. Each cost causation component is recovered by either a fixed charge (in monthly terms) or volumetric rate (per hcf). Table 4-34 details which cost components are recovered by which type of rate.

Table 4-34: Recovery of Cost Causation Components by Charge Type [A] [B] [C]
Line Cost Causation
Component Associated Charge
1 Water Supply Volumetric Rates
2 Base Delivery Volumetric Rates
3 Max Day Fixed & Volumetric Rates
4 Max Hour Fixed & Volumetric Rates
5 Fire Fixed Charges
6 Meter Fixed Charges
7 Customer Fixed Charges
8 Conservation Volumetric Charges
9 General Reallocated Pro Rata
Table 4-35 shows the projected COS values by customer class and tier. These values are developed by taking the units of service for each customer class (equivalent meters, customer bills, annual average demand, and max day/max hour demands by customer class) and multiplying by the unit rates derived in Table 4-33. These provide the basis for the total cost-to-serve each class, which are then used to develop fixed and variable rates for each customer class/tier in later sections. Note that the total cost to serve in Line 10, Column M is equal to the total revenue requirement derived for FY 2023-24 in Table 4-21.

Table 4-35: Cost to Serve by Water Customer Class
[A] [B] [C] [D] [E] [F] [G] [I] [J] [M]
Lin
e
Description Base Max Day Max
Hour Supply Conservation Meters Customer
Total
1 SFR $1,934,648 $234,129 $2,168,777
2 Tier 1 $1,047,044 $116,820 $72,230 $174,115 $12,407 $1,422,617 3 Tier 2 $300,421 $146,022 $28,239 $49,958 $3,560 $528,199 4 Tier 3 $297,193 $264,828 $35,975 $49,421 $3,522 $650,939 5 Subtotal $1,644,658 $527,671 $136,444 $273,493 $19,489 $1,934,648 $234,129 $4,770,532 6 7 Commercial $588,686 $188,528 $48,815 $97,894 $6,976 $373,244 $28,216 $1,332,359 8 Industrial $62,704 $43,012 $6,731 $10,427 $743 $40,847 $2,157 $166,621 9 Landscape $202,231 $200,588 $25,841 $33,629 $2,396 $112,087 $7,778 $584,550 10 Total $2,498,279 $959,798 $217,831 $415,443 $29,605 $2,460,826 $272,28 0 $6,854,06
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 51

4.5.Proposed Water Rates
Section 4.5 shows detailed calculations of proposed water rates through FY 2028-29. All proposed rates are first calculated directly from the results of the COS analysis (in Section 4.4) for FY 2024-25 (i.e. the “test year”). All FY 2024-25 “COS” rates and charges shown represent intermediate, revenue neutral results of the rate design process.

FY 2022-24 “COS” rates and charges must be calculated to provide a basis for proposed rates for FY 2024-25 through FY 2028-29 which rely on the results of the financial plan.

4.5.1.WATER SERVICE CHARGES (TEST YEAR FY 2024-25)
Table 4-36 shows the calculation of equivalent meters, which is necessary to differentiate Water Service Charges by meter size. Meter capacity ratios (Column D) are first calculated by dividing meter capacity (Column C) by 50 gallons per minute (gpm). Meter capacity ratios (Column D) are then multiplied by the number of water meters at each meter size in Column E to determine equivalent meters (Column F). Equivalent meters in this study are based on AWWA-rated hydraulic capacities16 and are calculated to represent the potential demand on the water system relative to a base meter size.

Table 4-36: Equivalent Water Meters (Test Year)
[A] [B] [C] [D] [E] [F]
Line Meter Size Meter Capacity
(gpm)
Meter Capacity
Ratio
Number of
Meters
Number of
Equivalent Meters
1 3/4-inch water meter 30 1.00 0 0
2 1-inch water meter 50 1.00 4,460 4,460
3 1.5-inch water meter 100 2.00 132 264
4 2-inch water meter 160 3.20 157 502
5 3-inch water meter 320 6.40 26 166
6 4-inch water meter 500 10.00 21 210
7 6-inch water meter 1000 20.00 0 0
9 Total 4,796 5,603
Water Service Charges are designed to recover costs associated with the Customer and Meters cost causation components. Table 4-37 shows the calculation of unit charges for the Customer and Meters cost causation components by dividing the total revenue requirement associated with each cost causation component (from Table 4-32) by the number of billing units.

Customer unit charges are calculated per customer bill. Meter unit charges are calculated per equivalent meter.

Equivalent meters are used to allocate meter-related costs appropriately and equitably. Larger meters impose larger demand, are more expensive to install, maintain, and replace than smaller meters, and have greater capacity potential within the water system. The resulting unit costs are shown below. 16 From the AWWA’s Manual of Water Supply Practices M22: Sizing Water Service Lines and Meters (Third Edition).

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Table 4-37: Water Service Charge Calculation (Test Year) Description Customer Meters
COS Allocation $272,280 $2,460,826
Billing Units 57,552 Bills 67,234 Annual Equivalent
Meters
Unit Charge (per Month) $4.73 per Bill $36.60 per Equivalent Meter Table 4-38 shows the detailed calculation of monthly Water Service Charges for the test year based on Customer and Meters unit charges. Customer costs do not vary by meter size. Therefore, the Customer unit rate is applied uniformly to all Water Service Charges (Column F). Because Meters costs vary by meter size based on hydraulic capacity, AWWA capacity ratios in Column C (from Table 4-36) are used to differentiate Meters unit charges by meter size.

The Meters charges (Column D) are calculated by multiplying the Meters unit charge (from Table 4-37) by the AWWA capacity ratio (Column C). COS monthly Water Service Charges (Column G) equal the sum of Columns D-F, and are compared to current FY 2022-23 charges in Columns I and J.

Table 4-38: Water Service Charges Calculation (Test Year) [A] [B] [C] [D] [F] [G] [H] [I] [J]
Line Meter
Size
Meter
Capacity
Ratio
Meter Customer
COS
Monthly
Charge
Current
Monthly
Charge
Difference
($) Difference (%)
1 3/4" 1.00 $36.60 $4.73 $41.34 $45.26 -$3.92 -9%
2 1" 1.00 $36.60 $4.73 $41.34 $45.26 -$3.92 -9%
3 1 1/2" 2.00 $73.20 $4.73 $77.94 $86.90 -$8.96 -10%
4 2" 3.20 $117.12 $4.73 $121.86 $136.86 -$15.00 -11%
5 3" 6.40 $234.25 $4.73 $238.98 $253.46 -$14.48 -6%
6 4" 10.00 $366.01 $4.73 $370.75 $419.91 -$49.16 -12%
7 6" 20.00 $732.02 $4.73 $736.76 $1,127.75 -$390.99 -35%

4.5.2.WATER VOLUME RATES (TEST YEAR)
Water Volume Rates are designed to recover the portion of the rate revenue requirement allocated to the following cost causation components: Water Supply, Base Delivery, Peaking (Max Day and Max Hour), and Conservation.

Supply rates are applied uniformly to all customer classes as the rates cover the cost of water supply. This rate is calculated by taking the total adjusted COS value for Base (shown in Table 4-33 above) and dividing by the total number of billing units (in hcf).

Table 4-39: Calculation of Supply Rates by Customer Class and Tier Description Base
Delivery
COS Allocation $415,443
Billing Units (HCF) 519,346
Unit Rate ($ / HCF) $0.80
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 53 Base Delivery Unit Rate
Base Delivery unit rates are applied uniformly to all customer classes and tiers as these are costs incurred to provide water service during average daily demand conditions. This rate is calculated by taking the total adjusted COS value for Base (shown in Table 4-33 above) and dividing by the total number of billing units (in hcf). Table 4-40 shows the calculation of Base Delivery unit rates.

Table 4-40: Calculation of Base Delivery Rate
Description Base Delivery
COS Allocation $2,498,279
Billing Units (HCF) 519,346
Unit Rate ($ / HCF) $4.81
Peaking Unit Rate
Peaking unit rates vary by customer class and tier based on peak water use characteristics. The allocation of these costs is based on the COS allocation of Max Day and Max Hour factors by customer class and tier, developed earlier in Table 4-35. The individual class/tier peaking rates are developed by taking the total allocation for Max Day and Max Hour by customer class and tier (Column C) and dividing by the total water use in each tier/class (Column B). Table 4-41 shows this calculation and the resulting rates (Column D).

Table 4-41: Calculation of Peaking Unit Rates
[A] [B] [C] [D]
Description Water Use
(hcf)
Capacity
Costs (Max
Day + Max
Hour)
Unit Rate ($/hcf)
SFR
Tier 1 217,661 $189,051 $0.87
Tier 2 62,452 $174,261 $2.79
Tier 3 61,781 $300,803 $4.87
Commercial 122,377 $237,344 $1.94
Industrial 13,035 $49,743 $3.82
Landscape 42,040 $226,429 $5.39
Total 519,346 $1,177,630
Conservation Unit Rate
Conservation costs are the costs associated with customer outreach, messaging, and direct conservation programs The total COS costs for conservation, by customer class (from Table 4-35) is divided by the total demands for each tier to determine a per HCF rate. Conservation costs are first allocated to both rate classes and then differentiated by residential tier. Because conservation efforts are aimed at curtailing high volume water use, the costs of SFR conservation are allocated entirely to Tier 3. Non-Residential’s share of conservation is recovered uniformly over Item 6.f
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every unit of water since this class has a uniform rate structure; the conservation calculation is simply the total cost divided by the total water use for that class. Table 4-42 shows the calculation of conservation rates.

Table 4-42: Calculation of Conservation Unit Rates
Description
Water
Demand
(hcf)
Conservation
Costs Unit Rate ($/hcf)
SFR
Tier 1 217,661 $0 $0.00
Tier 2 62,452 $0 $0.00
Tier 3 61,781 $19,489 $0.32
Non-Residential
Commercial 122,377 $6,976 $0.06
Industrial 13,035 $743 $0.06
Landscape 42,040 $2,396 $0.06
Total 519,346 $29,605
Water Volume Rate Calculation (Test Year)
Table 4-43 shows the calculation of Water Volume Rates for the test year. The final rate is summing the individual class/tier rates for each component developed above (water supply, base, peaking, and conservation). No revenue adjustments are incorporated into the COS rates shown, which are designed to collect the same amount of revenue as current water rates. The relevant tables for the calculation of each component are shown below:
» Water Supply Unit Rates (from Table 4-39)
» Base Delivery Unit Rates (from Table 4-40)
» Peaking Unit Rates (from Table 4-41)
» Conservation Unit Rates (from Table 4-42)
Table 4-43: Water Use Rates Calculation (Test Year)
[A
] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Li
ne
Customer
Class
By
Class/
Tier
(HCF)
Water
Suppl
y Unit
Rate
Base
Cost
Unit
Rate
Peaki
ng
Unit
Rate
Conser
vation
Unit
Rate
Proposed
COS
Rate
($/hcf)
Current
Rate
($/hcf)
Differenc
e ($)
Differenc
e (%)
1 SFR
2 Tier 1 217,661 $0.80 $4.81 $0.87 $0.00 $6.48 $6.48 $0.00 0.0% 3 Tier 2 62,452 $0.80 $4.81 $2.79 $0.00 $8.41 $6.48 $1.93 29.8% 4 Tier 3 61,781 $0.80 $4.81 $4.87 $0.32 $10.80 $6.48 $4.32 66.7% 5 6 Commercia
l 122,377 $0.80 $4.81 $1.94 $0.06 $7.61 $6.48 $1.13 17.4% 7 Industrial 13,035 $0.80 $4.81 $3.82 $0.06 $9.49 $6.48 $3.01 46.5% 8 Landscape 42,040 $0.80 $4.81 $5.39 $0.06 $11.06 $6.48 $4.58 70.7% Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 55 Proposed Five-Year Rates Schedule
Table 4-44 shows the proposed three-year schedule of water rates for implementation July1, 2024 through July 2026. July 2024 rates are calculated by taking the final proposed rate in Table 4-43 and multiplying by the proposed revenue adjustment shown in Table 4-16. The rates for the remaining years of the study are calculated by multiplying each year’s rate by the proposed adjustment shown for that year in Table 4-16.

Table 4-44: Proposed Three-Year Water Rates Schedule
Description Current FY 2025 FY 2026 FY 2027
Residential Fixed Monthly Service Charge
Single Family $28.61 By Meter Size By Meter Size By Meter Size Single Family + ADU (per DU) $21.84 By Meter Size By Meter Size By Meter Size Multi-Family (Per DU) $17.01 By Meter Size By Meter Size By Meter Size Fixed Monthly Service Charges
Up to 1" $45.26 $41.34 $49.61 $56.06
1 1/2" $86.90 $77.94 $93.53 $105.69
2" $136.86 $121.86 $146.24 $165.26
3" $253.46 $238.98 $286.78 $324.07
4" $419.91 $370.75 $444.90 $502.74
6" $1,127.75 $736.76 $884.12 $999.06
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48 $6.48 $7.78 $8.80
Tier 2 (6-10 HCF) $6.48 $8.41 $10.10 $11.42
Tier 3 >10 HCF $6.48 $10.80 $12.96 $14.65
Non-Residential Classes
Commercial $6.48 $7.61 $9.14 $10.33
Industrial $6.48 $9.49 $11.39 $12.88
Landscape $6.48 $11.06 $13.28 $15.01
Riverview HOA17 $1.59 $1.93 $2.32 $2.63
17 Only the volumetric rate applicable to Riverview HOA under the terms of the 1997 order of condemnation. HOA Riverview pays a fixed monthly service charge by meter size that increases based schedule.

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5.Wastewater Rate Study

5.1.Key Inputs and Assumptions
Raftelis developed a wastewater rate model to project financial calculations over the next ten fiscal years with projections shown in this report through the five-year rate-setting period of FY 2028-29 (i.e. the “study period”).

While the study period consists of five years, the proposed rates for adoption are for only the first three years only.

The City’s fiscal year spans from July 1 through June 30. Projections in future years were informed by actual data for FY 2021-22 or FY 2022-23, or the adopted budget for FY 2023-24 using key assumptions outlined below.

Assumptions were discussed with, and reviewed by, City of Healdsburg Public Works and Finance staff to ensure that the City wastewater system’s unique characteristics are accurately accounted for. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 57

5.1.1.CURRENT WASTEWATER RATES
Table 5-1 shows the wastewater rates currently in effect in FY 2023-24, which were developed during the prior rate study in 2022. Rates and charges vary by customer class. Residential customers are subject to a monthly Fixed Charge per dwelling unit and a variable flow charge per Average Winter Consumption (AWC) over January to April, with highest month usage being omitted; non-residential customers are subject to a fixed charge by meter size and a variable Flow Charge based on actual water use and strength category for each billing period. All current charges are shown on a monthly basis.

Table 5-1: Current Wastewater Rates Schedule
Description FY 2024
Residential Service Charges
($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67
SFR + ADU $31.95
Multi-Family Residential (MFR) $37.80
Flat Rate (Sewer Only SFR) $104.01
Non Residential Service Charges
($/Month/Meter)
5/8" $75.75
1" $75.75
1 1/2" $148.49
2" $235.77
3" $439.44
4" $730.39
6" $1,966.94
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47
Non Residential
Low Strength $10.31
Medium Strength $15.09
High Strength $22.08

5.1.2.WASTEWATER ENTERPRISE FINANCIAL ASSUMPTIONS
Inflationary assumptions shown in Table 5-2 are used to escalate projected non-rate revenues and operations and maintenance (O&M) expenses beyond FY 2023-24. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI). Specifically, increases in salaries and cost-of-living adjustments (COLA) match the annual percentage changes in wages and salaries reported by the CPI. At the direction of city staff, adjustments for salary/employee benefits and electricity costs have been made. Electricity cost adjustments directly reflect the estimated rate increases provided by the city's electric suppliers. Utility costs have been updated to mirror the changes in fuel and utilities prices from October 2022 to October 2023, as indicated by the CPI. Capital expenses have been adjusted based on the three-year average from the Engineering News-Record (ENR). All inflationary assumptions are consistent with inflationary assumptions used in the water rate study.

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Table 5-2: Wastewater Enterprise Inflationary Assumptions Inflationary Categories FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Expenses
General Cost Inflation 3.7% 3.7% 3.7% 3.7% 3.7%
Salary / COLA 4.5% 4.5% 4.5% 4.5% 4.5%
Salary / Employee Benefits 7% 7% 7% 7% 7%
Utilities 5.2% 5.2% 5.2% 5.2% 5.2%
Capital 5.9% 5.9% 5.9% 5.9% 5.9%
Electricity 14.0% 8.0% 7.0% 5.0% 5.0%

5.1.3.PROJECTED WASTEWATER BILLING UNITS OF SERVICE
City staff provided Raftelis with wastewater billing data to gather customer counts and usage per class and meter size. Similar to the water utility, the City's wastewater utility isn't expecting an increase in accounts. This, coupled with a strong emphasis on water conservation, resulted in overall usage and revenues remaining stable. Therefore, for the study period, Raftelis didn't project any growth in accounts but relied on current estimates of actual meter counts for all future years.

Table 5-3 displays the current values for wastewater meters. To ensure conservative rate revenue projections and align with water demand projections, no additional demand factor was applied to billed wastewater flows. All billing units provided below are based on the current wastewater rate structure.

Table 5-3: Current Wastewater Enterprise Connections
Description Current Number
of Meters
Residential (Dwelling Units)
Single Family Residential (SFR) 3,774
SFR + ADU 316
Multi-Family Residential (MFR) 811
Subtotal - Residential 4,901
Non-Residential Accounts
Low Strength 369
Medium Strength 97
High Strength 75
Subtotal – Non-Residential 541
Total Dwelling Units & Accounts 5,442
Table 5-4 shows the projected wastewater flows for the City’s customers over the study period. Note that, because the City assumed constant water demand, all flows remain constant throughout the study period. As such, only FY 2022-23 actual flows are shown and are the estimate for future years`; all other years in the study (through FY 2032-33) are equivalent to those shown in Table 5-4 below. All flows are shown in hundred cubic feet (hcf).

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 59 Table 5-4: Estimated Non-Residential Wastewater Flows (hcf), Existing Rate Structure Description Projected
FY 2025
Residential
Single Family Residential (SFR) 156,948
SFR + ADU 9,256
Multi-Family Residential (MFR) 25,760
Subtotal – Residential 191,964
Non-Residential
Low Strength 68,244
Medium Strength 27,349
High Strength 39,944
Subtotal – Non-Residential 135,537
Total Flows 327,501

5.2.Wastewater Financial Plan
Section 5.2 details the development of a proposed Wastewater Enterprise financial plan over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding through FY 2028-29. The overall purpose of the financial plan is to determine annual wastewater rate revenues required to achieve sufficient cash flow, maintain adequate reserves, and meet debt coverage requirements.

5.2.1.WASTEWATER ENTERPRISE REVENUE UNDER CURRENT RATES The Wastewater Enterprise’s revenue sources consist of wastewater rates, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current FY 2023-24 wastewater rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any wastewater rate increases. This status quo scenario provides a baseline from which Raftelis evaluated the need for revenue adjustments (i.e. gross rate revenue increases).

Table 5-5: Projected Rate Revenues with Current Wastewater Rates Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Wastewater Rate Revenues
Variable $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 Fixed $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 Total $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 Other Wastewater Enterprise Revenues
Table 5-6 shows all other Wastewater Enterprise revenues. All FY 2023-24 other revenues are based on the City’s FY 2023-24 adopted budget which includes non-recurring transfers and a one-time adjustment to account for available capital funding. Projected future miscellaneous revenues represent scheduled loan repayments.. Interest revenue is estimated in the financial plan model beginning in FY 2024-25 based on projected fund balances and the assumed interest rate.

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Table 5-6: Other Wastewater Enterprise Revenues
Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Wastewater - Other Revenues
Miscellaneous Revenues $1,070,403 $123,313 $123,313 $123,313 $123,313 $123,313 Interest Income $37,810 $40,159 $44,829 $39,427 $38,969 $39,409 Total $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 Summary of Projected Wastewater Enterprise Revenues
Table 5-7 shows a summary of all projected Wastewater Enterprise revenues under current rates over the study period. This includes all projected revenues shown in Table 5-5 and Table 5-6. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 5-7: Projected Wastewater Enterprise Revenues Under Current Rates Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Wastewater Revenues
Variable Revenues $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 Fixed Revenues $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 Miscellaneous Revenues $1,070,403 $123,313 $123,313 $123,313 $123,313 $123,313 Interest Income $37,810 $40,159 $44,829 $39,427 $38,969 $39,409 Total $8,745,011 $7,800,270 $7,804,940 $7,799,538 $7,799,080 $7,799,520

5.2.2.WASTEWATER ENTERPRISE OPERATIONS & MAINTENANCE EXPENSES Table 5-8 shows a summary of all Wastewater Enterprise O&M expenses over the study period. O&M expenditures include the cost of operating and maintaining wastewater collection, treatment, and disposal facilities.

O&M expenses also include the costs of providing technical services such as laboratory services and other administrative costs of the wastewater system. These costs are a normal obligation of the system and are met from operating revenues as they are incurred. The projection indicates that operation and maintenance (O&M) expenses will rise by an average of 5% each year throughout the study period. However, there is an exception between 2024 and 2025, when costs are expected to decrease. This decrease is attributed to several one-time expenses, including legal services, and equipment repairs that were funded by non-recurring transfers in the 2024 budget but will not continue into subsequent years. The City provided Raftelis with projected actuals for FY 2022-23 and budgeted values for FY 2023-24. Raftelis then used the inflation factors shown above in Table 5-2 to escalate O&M costs in the out years.

Table 5-8: Projected Wastewater Enterprise O&M Expenses O&M Expenses Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Collection $2,187,114 $2,310,089 $2,415,419 $2,524,975 $2,637,152 $2,761,448 Treatment $3,550,677 $3,407,584 $3,582,147 $3,760,612 $3,935,847 $4,119,726 Customer $215,468 $225,246 $235,497 $246,245 $257,516 $269,337 General $812,296 $776,103 $812,145 $849,976 $889,691 $931,390 Total O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 61

5.2.3.WASTEWATER ENTERPRISE DEBT
Table 5-9 shows the Wastewater Enterprise’s projected debt service obligations over the study period. Existing debt service consists of the City’s Series 2015 In July 2015, the City issued the 2015 Wastewater Revenue Refunding Bonds, which defeased the remaining Sewer Bonds of the 2005 CSDA Bonds of $2,440,000. The 2005 CSDA Sewer Bonds are considered to be defeased and the liability has been removed from long-term debt. The wastewater utility received a $425,000 loan from the general fund to be paid back over the next 4 years which is considered O&M in the budget. The City does not plan to issue new debt for its wastewater enterprise during the study period.

Table 5-9: Wastewater Enterprise Debt Service
Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Existing Debt Service
Series 2015 Revenue
Refunding Bond $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 Subtotal $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 Proposed Debt Service
New Debt $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0
Total $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416

5.2.4.WASTEWATER ENTERPRISE CAPITAL IMPROVEMENT PLAN
Table 5-10 shows the City’s capital improvement plan (CIP) for the Wastewater Enterprise over the study period.

The values shown are based on the most recently prepared multi-year CIP. . To reduce immediate financial needs and financial impacts the CIP defers several infrastructure replacement projects for portions of the utility pipeline beyond their useful life and several rehabilitation projects for aging lift stations. The deferral of these projects will not impact the immediate service provided by the Utility, but it will continue to challenge overall system reliability in the long-term. Significant CIP expenditures are anticipated to continue over the next ten years, with approximately $3.7M in capital spending per year for the duration of the ten-year planning period. This highlights the need to maintain adequate reserves to fund substantial CIP projects beyond FY 2028-29. Capacity-related project costs are not included in the CIP and revenue associated with capital recover fees are excluded from the revenue requirement.

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Table 5-10: Wastewater Enterprise Capital Improvement Plan Project Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Orchard Lift Station Rehabilitation $0 $0 $277,981 $0 $0 $0 Heron Lift Station Relocation $0 $0 $0 $0 $1,706,188 $0 Magnolia LS Structure Rehabilitation $0 $0 $216,332 $0 $0 $0 Hendricks Lift Station / Westside Road Gravity Sewer $0 $0 $0 $0 $0 $1,557,636 Spare centrifuge rotating assembly $0 $0 $183,826 $0 $0 $0 Pond 1 Liner Repairs $0 $80,463 $0 $0 $0 $0
Membrane Feed Pumps $0 $0 $95,276 $0 $0 $123,706
Storm Drain Pumps $0 $0 $0 $0 $75,384 $0
Plant Drain Pumps $0 $0 $0 $0 $77,897 $0
WRF membrane replacement $0 $281,620 $0 $0 $0 $0
Reconstruct Corp Yard Lift Station $0 $0 $0 $0 $63,946 $0 WRF Fence / Trees $0 $0 $0 $0 $97,999 $0
WRF Compressors $0 $29,644 $32,506 $0 $0 $0
A-Basin Diffusers Replacement $0 $0 $68,374 $0 $0 $0
Air actuators for Filtration gallery 10-inch valves $0 $0 $0 $0 $0 $17,292 Air actuators for Filtration gallery 14-inch valves $0 $0 $0 $0 $0 $21,283 Mixers $0 $0 $0 $0 $0 $0
Magnolia Pump Station Pump 1 Replacement $0 $0 $0 $0 $131,922 $0 Wastewater and Programming Computer $0 $7,411 $0 $0 $0 $0 Boeger Pump Rehab $0 $0 $0 $0 $18,846 $19,953
UV Wiper hydraulic Hoses $0 $0 $0 $31,391 $0 $0
Inflow and Infiltration Investigation $0 $0 $0 $0 $332,945 $0 Drainage Improvements at Industrial Group Building $0 $0 $0 $0 $37,692 $0 McDonough Water Transmission Main Replacement $0 $0 $0 $0 $45,513 $527,747 Brown Street Sewer & Water Replacement $0 $0 $1,330,576 $0 $0 $0 Reed Court & Bianca Lane Sewer & Water Replacement $0 $0 $0 $0 $0 $107,079 University Street Sewer & Water Replacement $0 $0 $128,258 $1,352,929 $0 $0 Healdsburg Ave Sewer Replacement $0 $0 $0 $2,007,053 $0 $0 Healdsburg Ave Utility Replacement $0 $760,956 $0 $0 $0 $0 Ongoing R&R $0 $0 $0 $0 $0 $1,995,264
Inflow and Infiltration Repairs $0 $0 $0 $0 $1,256,398 $0 Total CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 Item 6.f
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 63 Table 5-11 shows the assumed funding sources for Wastewater Enterprise CIP projects over the five-year study period. The City plans to fund its capital expenditures through rates (e.g., PAYGO). The rate study does not project the need for additional debt issuances for the study period; as such, the capital funding plan for the Wastewater Enterprise assumes cash-funding for the duration of the study period. Figure 5-11 shows a summary of total Wastewater Enterprise CIP expenditures by funding source through FY 2032-33.

Table 5-11: Wastewater Enterprise Capital Improvement Plan, by Funding Source Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Rate Funded $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 Bond Funded $0 $0 $0 $0 $0
Grant Funded $0 $0 $0 $0 $0
Total $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 Figure 5-1: Wastewater Enterprise Capital Improvement Plan

5.2.5.WASTEWATER ENTERPRISE FINANCIAL POLICIES
Required Debt Coverage
The Wastewater Enterprise is required to meet debt service coverage requirements on its outstanding wastewater revenue bonds. Failure to meet debt service coverage results in a technical default, which, without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance or even denial of credit. This is consistent with the requirements for the City’s Water Item 6.f
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Enterprise. The required debt coverage ratio is 1.20, meaning that the Wastewater Enterprise’s net operating revenues (i.e. total revenues less operating expenses) must amount to at least 1.20 times the amount of annual debt service.

Reserve Targets
Adequate cash reserves are required to meet operating, capital, and debt service requirements. The current operating reserve target is equal to 25% percent of annual O&M expenses. Raftelis recommends the City shift the reserve policy outlined in the previous study of establishing a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing them to support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. Furthermore, when the City undertakes the next rate studies and adopts the next rate plan, it’s recommended that the City consider funding an additional one-million-dollar rate stabilization reserve, which can be used to address major equipment failures and natural disasters. The change will mitigate otherwise higher rate increases over the study period.

Table 5-12: Wastewater Enterprise Financial Policies
Financial Policy Target/Requirement
Debt Coverage
Target Debt Coverage Ratio 1.20
Reserve Targets
Operating Reserve Target 25% of annual O&M expenses
Rate Stabilization Target $1 Million
Total Reserve Target 25% of annual O&M expenses + $1 million Table 5-13: Projected Wastewater Enterprise Reserve Targets Reserve Target FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Operating Reserve $1,691,389 $1,679,756 $1,761,302 $1,845,452 $1,930,051 $2,020,475 Rate Stabilization
Reserve $1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Reserve
Target $2,691,389 $2,679,756 $2,761,302 $2,845,452 $2,930,051 $3,020,475

5.2.6.STATUS QUO WASTEWATER FINANCIAL PLAN
To evaluate the need for revenue adjustments (i.e. increases to gross rate revenues), Raftelis first developed a status quo financial plan. The status quo financial plan assumes that current FY 2023-24 rates remain unchanged over the study period. Table 5-14 combines projected revenues (from Table 5-7), O&M expenses (from Table 5-8), and debt service (from Table 5-9) to generate operating cash flow projections under the status quo. In the absence of any revenue adjustments, the Wastewater Operating Fund will fail to generate sufficient revenue to recover O&M expenses and debt service over the study period.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 65 Table 5-14: Wastewater Cash Flow – Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Rate Revenue under Current Rates
2 Wastewater Rates
Subject to Revenue
Adjustments
$7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 3 Non-Rate revenues 18 $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 4 Total Revenues $8,745,011 $7,800,270 $7,804,940 $7,799,538 $7,799,080 $7,799,520 5 6 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 7 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 8 Rate-Funded CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 9 Total Expenses $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 10 11 Net Cash Flow19 $188,105 ($1,873,597) ($3,364,648) ($4,769,394) ($5,560,780) ($6,445,757 )
Table 5-15 shows projected reserve balances and debt coverage under the status quo financial plan for the entire Wastewater Enterprise. Sources of funds include both rate and non-rate revenues but exclude revenues from rate increases. Use of funds include O&M expenses (from Table 5-8), debt service (from Table 5-9), and CIP expenditures (from Table 5-11). The FY 2023-24 beginning balance reflects actual Wastewater Enterprise reserve balances as of July 1, 2023. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 5-13.
18 Includes miscellaneous revenues and interest income. 19 Equal to [Line 4 – Line 9].

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Table 5-15: Wastewater Enterprise Pro Forma – Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Projected Beginning
Balance $2,758,739 $2,946,844 $1,073,248 ($2,291,400) ($7,060,794) ($12,621,574) 2 3 Source of Funds
4 Status Quo Rate Revenues $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 5 Other Revenues $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 9 Total Source of Funds $8,745,011 $7,800,270 $7,804,940 $7,799,538 $7,799,080 $7,799,520 10 11 Use of Funds
12 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 13 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 14 Rate-Funded CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 15 Total Use of Funds $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 16 17 Net Cashflow $188,105 ($1,873,597) ($3,364,648) ($4,769,394) ($5,560,780) ($6,445,757) 18 19 Projected Ending
Balance20 $2,946,844 $1,073,248 ($2,291,400) ($7,060,794) ($12,621,574) ($19,067,331) 20 Operating Reserve Target $2,691,388 $2,679,755 $2,761,302 $2,845,452 $2,930,051 $3,020,475 22 23 Debt Coverage
24 Projected Debt Coverage21

1.11 0.60

0.42 0.23

0.04 (0.16)
25 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20

5.2.7.PROPOSED WASTEWATER FINANCIAL PLAN
Wastewater Enterprise must increase its revenues from wastewater rates over the study period to adequately fund its operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding. Raftelis worked closely with City staff to identify financial plan options for the Board’s consideration. The selected option of proposed annual revenue adjustments is shown in Table 5-16. Revenue adjustments represent annual percentage increases in total rate revenue relative to rate revenue generated by the prior year’s wastewater rates.

Table 5-16: Proposed Wastewater Enterprise Revenue Adjustments Proposed Future Increases
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 18.0% 18.0% 15.0% 9.0% 5.0%
Table 5-17 combines projected wastewater rate and non-rate revenues (from Table 5-7), O&M expenses (from Table 5-8), and debt service (from Table 5-9) to generate operating cash flow projections under the proposed financial plan. By implementing the proposed revenue adjustments, we project that the Wastewater Operating Fund will maintain sufficient operating cash flow through the end of the study period. 20 Equal to [Line 1 + Line 17]
21 Equal to [(Line 9 – Line 12) ÷ Line 13]
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 67 Table 5-17: Wastewater Cash Flow – Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Rate Revenue under Current Rates
2 Wastewater Rates
Subject to Revenue
Adjustments
$7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 3 Non-Rate Revenues22 $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 4 Revenue Adjustments
5 Fiscal
Year
Rev.

Adj.
6 FY 2025 18.00% $1,374,624 $1,374,624 $1,374,624 $1,374,624 $1,374,624 7 FY 2026 18.00% $1,622,056 $1,622,056 $1,622,056 $1,622,056 8 FY 2027 15.00% $1,595,022 $1,595,022 $1,595,022
9 FY 2028 9.00% $1,100,565 $1,100,565
10 FY 2029 5.00% $666,453
11 Total Adjustments $0 $1,374,624 $2,996,679 $4,591,701 $5,692,266 $6,358,719 12 13 Total Revenues $8,745,011 $9,174,893 $10,801,620 $12,391,239 $13,491,346 $14,158,239 14 15 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 16 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 17 Rate-Funded CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 18 Total Expenses $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 19 20 Net Operating Cash
Flow23 $188,105 ($498,973) ($367,968) ($177,693) $131,486 ($87,038) Table 5-18 shows projected reserve balances and debt coverage under the proposed financial plan for the entire Wastewater Enterprise. Sources of funds include revenues (from Table 5-7), revenue adjustments (from Table 5-17), use of funds include O&M expenses (from Table 5-8), debt service (from Table 5-9), and CIP expenditures (from Table 5-11). The FY 2023-24 beginning balance reflects actual Wastewater Enterprise reserve balances as July 1, 2023. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 5-13. Under the proposed financial plan, reserve balances and debt coverage are projected to achieve target policies in all years of the rate-setting period. 22 Includes miscellaneous revenues, interest income, and loan/grant revenues. 23 Equal to [Line 13 – Line 18].

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Table 5-18: Wastewater Enterprise Pro Forma – Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Beginning Balance $2,758,739 $2,946,844 $2,447,871 $2,079,903 $1,902,210 $2,033,696 2 3 Source of Funds
4 Rate Revenues (including
adjustments) $7,636,798 $9,011,421 $10,633,477 $12,228,499 $13,329,064 $13,995,517 5 Other Revenues $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 9 Total Source of Funds $8,745,011 $9,174,893 $10,801,620 $12,391,239 $13,491,346 $14,158,239 10 11 Use of Funds
12 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 13 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 14 Capital Improvement Plan
Expenditures $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 15 Total Use of Funds $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 16 17 Ending Balance24 $2,946,844 $2,447,871 $2,079,903 $1,902,210 $2,033,696 $1,946,658 18 Operating Reserve Target $2,691,388 $2,679,755 $2,761,302 $2,845,452 $2,930,051 $3,020,475 19 20 Debt Coverage
23 Projected Debt Coverage25

1.11 1.37

2.10 2.79

3.22 3.39
24 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20 24 Equal to [Line 1 + Line 9 – Line 15].
25 Equal to [(Line 9 – Line 12) / Line 13].

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 69 Figure 5-2 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. As shown below, debt coverage remains far above the requirement throughout the study period due to the minimal amount of existing debt and absence of future debt issuances for this study.

Figure 5-2: Proposed Wastewater Financial Plan – Projected Debt Coverage Figure 5-3 shows the Wastewater Enterprise’s projected ending balance under the proposed financial plan. The light blue bars indicate the ending balance. Minimum targets (based on the policies described in Table 5-12) are shown by the orange line and red line.

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Figure 5-3: Proposed Wastewater Financial Plan – Projected Ending Cash Balances Figure 5-4 shows the proposed versus status quo operating financial plan. Revenues under the status quo and proposed financial plans are represented by the blue and black lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 71 Figure 5-4: Proposed vs. Status Quo Wastewater Enterprise Financial Plan

5.3.Wastewater Cost-of-Service Analysis
Section 5.3 details the Cost-of-Service (COS) analysis performed for the Wastewater Enterprise for FY 2024-25. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the wastewater system. This provides the basis for the development of proposed wastewater rates through FY 2028-29.

5.3.1.METHODOLOGY
The first step in a COS analysis is to determine the revenue required from wastewater rates. The total revenue requirement results from the wastewater financial plan in Section 5.2. The methodology to develop the COS analysis and to apportion the revenue requirement to user classes is informed by the WEF’s Manual of Practice (MOP) No. 27 Financing and Charges for Wastewater Systems. COS analyses are tailored to meet the specific needs of each wastewater system. However, there are distinct steps in every COS analysis to recover costs from customers in an accurate, equitable, and defensible manner:

1. Cost Functionalization: O&M expenses and capital assets are categorized by their function in the wastewater system. Sample functions may include collection, treatment, and customer service, among others.

2. Cost Causation Component Allocation: Functionalized costs are then allocated to cost causation components based on their burden on the wastewater system. The cost causation components include flow, biological oxygen demand (BOD), and suspended solids (SS), among other specific cost components. The Item 6.f
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revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Mass Balance Analysis: The flow and strength (BOD and SS) of wastewater treatment plant (WWTP) influent is attributed to each customer class based on water use data and estimated wastewater generation and strength assumptions that vary by user classification. However, due to the unique characteristics of pipelines and treatment facilities, this analysis may not always yield precise service units by class but can confirm the total volume of treated wastewater. In this study, Raftelis relied on industry standard strength and average plant strength data.

4. Revenue Requirement Distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component unit cost to customer classes based on each customer class’s individual burden on the wastewater system.

5.3.2.WASTEWATER RATE REVENUE REQUIREMENT
Table 5-19 shows the calculation of the wastewater rate revenue requirement for FY 2024-25 (also referred to as the test year). The revenue requirement is split into operating and capital categories (Columns C-D), which are later allocated based on O&M expenses and capital assets. The revenue requirements (Lines 2-4) include FY 2024-25 O&M expenses, debt service, and capital projects. The revenue offsets (Lines 8-10) include all non-rate revenues.

These revenues are applied as offsets to the final rate revenue requirement. The adjustment for cash balance (Line 14) is equal to FY 2024-25 negative net operating cash flow under the proposed financial plan, and accounts for the drawdown of operating reserves in FY 2024-25. All values are from the proposed wastewater financial plan operating cash flow (Table 5-17). The final rate revenue requirement (Line 19) is calculated as follows:

Total revenue required from rates (Line 19) = Revenue requirements (Line 5) - Revenue offsets (Line 11) - Adjustments (Line 16) Table 5-19: Wastewater Rate Revenue Requirement (Test Year) [A] [B] [C] [D] [E]
Line Description
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Total
1 Revenue Requirements
2 O&M Expenses $6,719,022 $6,719,022
3 Debt Service $1,794,750 $1,794,750
4 Capital Expenditures – PAYGO $1,160,094 $1,160,094
5 Total Revenue Requirements $6,719,022 $2,954,844 $9,673,867 6 7 Less: Revenue Offsets
8 Miscellaneous Revenues $123,313 $123,313
9 Interest Income $40,159 $40,159
10 Total Revenue Offsets $163,472 $0 $163,472
11 12 Less: Adjustments
13 Adjustment for Cash Balance $498,973 $498,973
14 Adjustment for Mid-Year Increase $0 $0
15 Total Adjustments $0 $498,973 $498,973
16 17 Total Revenue Requirement w/o Offsets $6,719,022 $2,455,871 $9,174,893 18 Total - Revenue Requirement $6,555,550 $2,455,871 $9,011,421 Item 6.f
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5.3.3.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES
After determining the revenue requirement, the next step of the wastewater COS analysis is to allocate O&M expenses and capital assets to the following functional categories:
» Collection: costs associated with the collection and transport of wastewater discharges from customers to the wastewater treatment plant
» Treatment: costs associated with the treatment and disposal of wastewater from customers » Customer: costs of billing, revenue collections, and other customer services functions » General: costs for general administration and operational expenses or any other costs that do not clearly relate to another functional category (i.e. indirect costs) The functionalization of costs allows for the allocation of costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include:
» Flow: costs associated with the volume of wastewater generated, collected, and treated » BOD/SS: costs associated with the strength of wastewater treated and disposed of in terms of the following parameters: suspended solids (SS) and biochemical oxygen demand (BOD) » Customer: costs of billing, revenue collections, and other customer services functions » General: costs for general administration and operational expenses or any other costs that do not clearly relate to another functional category (i.e. indirect costs) Item 6.f
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5.3.4.WASTEWATER ENTERPRISE O&M EXPENSE ALLOCATION
Table 5-20 shows the basis for allocating each functional category to the various cost causation components. This provides the basis for allocating O&M and capital expenses in the following subsections.

The collection costs are directly assigned to the flow category. General costs are initially allocated to a general category, which is later redistributed based on overall allocations. Treatment costs are allocated in three ways: 52% to flow, 31% to biological oxygen demand, and 17% to suspended solids. This allocation reflects the treatment plant reclaimed system for flow and the pounds of effluent treated.

Table 5-20: Allocation of Functional Categories to Wastewater Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H]
Line Functional
Category Flow
Biological
Oxygen
Demand
Suspended
Solids General Billing Total
1 Collection 100% 0% 0% 0% 0% 100%
2 Treatment 52% 31% 17% 0% 0% 100%
3 Customer 0% 0% 0% 0% 100% 100%
4 General 0% 0% 0% 100% 0% 100%
The next step of the COS analysis is to develop an allocation basis for the operating revenue requirement based on the functionalization of the Wastewater Enterprise’s O&M expenses. Table 5-21 shows the allocation of FY 2024- 25 O&M expenses by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-H) to the various cost causation components was determined in Table 5-20. The total dollar amount allocated to each cost causation component (Line 5) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

Table 5-21: Wastewater Enterprise O&M Expenses – Allocation to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H]
Line Functional
Category Flow BOD SS General Billing FY 2024-25 O&M
1 Collection $2,310,089 $0 $0 $0 $0 $2,310,089
2 Treatment $1,771,944 $1,056,351 $579,289 $0 $0 $3,407,584 3 Customer $0 $0 $0 $0 $225,246 $225,246
4 General $0 $0 $0 $776,103 $0 $776,103
5 Total O&M $4,082,033 $1,056,351 $579,289 $776,103 $225,246 $6,719,022 6 7 O&M Allocation 60% 16% 9% 12% 3% 100%
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5.3.5.WASTEWATER ENTERPRISE CAPITAL ALLOCATION
Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. Use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall wastewater asset base, however, is considerably stable in the long-term, and therefore is more representative of long-term capital investment in the City’s wastewater system.

Thus, functionalized capital assets are used to allocate capital costs.

City staff provided Raftelis with a detailed asset listing that included the original cost of each individual wastewater asset. Raftelis calculated the replacement cost less depreciation (RCLD) of each asset based on net book value using the Engineering News-Record’s 20-City Average Cost Construction Index (CCI) to account for capital cost inflation. RCLD is the most common valuation method for deriving functional values for a utility system as it is the best point in time estimate of a system for a cost of service analysis. As infrastructure is reinvested in over time, the asset base will change, with changes accounted for in subsequent cost of service analyses. As part of the capital asset analysis, Raftelis assigned each individual asset to a functional category with the assistance of City staff. Total wastewater asset value (RCLD) by functional category is shown in Table 5-22. Percentages are rounded to the nearest one-tenth of one percent.

Table 5-22: Wastewater Enterprise Capital Assets by Functional Category [A] [B] [C] [D]
Line Functional Category Asset Value
(RCLD) Percent of Total
1 Collection $9,664,590 22.2%
2 Lift Stations $270,000 0.6%
3 Treatment $32,200,000 73.9%
4 Customer $0 0.0%
5 General $1,434,416 3.3%
6 Total Asset Value (RCLD) $43,569,006 100.0%
Table 5-23 shows the allocation of capital assets by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-H) to the various cost causation components was determined in Table 5-20. Total capital assets associated with each functional category (Column I) were determined in Table 5-22. The total dollar amount allocated to each cost causation component (Line 6) is determined by multiplying the total asset value associated with each functional category by the corresponding percentage allocation and summing across all functional categories. This is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 5-21. The initial capital line allocation percentages (line 8) represent the proportion of total capital assets allocated to each cost causation component (line 6). The total capital revenue requirement (Column I, line 11) equals the capital revenue requirement from Table 5-19 (Column D, line 18).

Table 5-23: Functionalized Wastewater Capital Assets Allocation to Cost Causation Components [A] [B] [C] [D] [E] [G] [H] [I]
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Line Functional Category Flow
Biological
Oxygen
Demand
Suspended
Solids General Billing Asset Value (RCLD)
1 Collection $9,664,590 $0 $0 $0 $0 $9,664,590
2 Lift Stations $270,000 $0 $0 $0 $0 $270,000
3 Treatment $16,744,000 $9,982,000 $5,474,000 $0 $0 $32,200,000 4 Customer $0 $0 $0 $0 $0 $0
5 General $0 $0 $0 $1,434,416 $0 $1,434,416
6 Total Assets $26,678,590 $9,982,000 $5,474,000 $1,434,416 $0 $43,569,006 7 Total Assets – General
Reallocated $27,586,827 $10,321,824 $5,660,355 $0 $0 $43,569,006 8 Capital Allocation before
General Reallocation 61.23% 22.91% 12.56% 3.29% 0.00% 100% 9 Final Capital Allocation 63.32% 23.69% 12.99% 0.00% 0.00% 100% 10 11 Capital Revenue
Requirement $1,554,997 $581,814 $319,059 $0 $0 $2,455,871

5.3.6.ALLOCATION OF REVENUE REQUIREMENT TO COST COMPONENTS Utilizing the cost allocations developed above in Table 5-20, Table 5-21, and Table 5-23, we can now allocate the operating, capital, and revenue offset portions of the revenue requirement to the various cost components. As with Water Enterprise COS, we allocate the revenue offset (non-rate revenues) according to the capital allocation for interest income; and the operating allocation for miscellaneous revenues.

The resulting distributions of costs are listed below in Table 5-24. Note that the total revenue requirement in Line 4, Column G, is equal to the total revenue requirement developed in Table 5-19.

Table 5-24: Allocation of Test Year Revenue Requirement to Cost Causation Components [A] [B] [C] [D] [E] [F] [H] [G]
Line Description Flow BOD SS Customer Bills FY 2024-25 Rev. Req. 1 Operating
Expenses $4,504,989 $1,162,870 $637,703 $0 $249,988 $6,555,550 2 Capital
Expenses $1,554,997 $581,814 $319,059 $0 $0 $2,455,871
3 Total $6,059,986 $1,744,684 $956,762 $0 $249,988 $9,011,421 Item 6.f
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5.3.7.PLANT MASS BALANCE ANALYSIS
The next step of the wastewater COS analysis is to attribute flow and strength loadings entering the City’s wastewater treatment plant to various user classifications. This is necessary to allocate the Flow, Biological Oxygen Demand, and Suspended Solids cost causation components to each customer class for recovery by the proposed wastewater rates.

Table 5-25 shows Raftelis’ mass balance analysis of the City’s wastewater treatment plant based on plant influent data for FY 2021-22. The result is attribution of flow and strength loadings to each customer class. Key inputs and assumptions include:
» Estimated total FY 2022-23 wastewater flows entering the wastewater treatment plant » Estimated strength concentration for BOD and SS based on previous wastewater rate analyses, SWRCB guidelines, and adjustments to better match actual treatment plant flows and loadings. » FY 2022-23 water use associated with non-residential wastewater customers (from City billing data) » Estimated return-to-sewer factors for non-residential classes based on an analysis of monthly metered water use.
» Residential class wastewater generation is aligned with average plant influent strength.

Table 5-25: Mass Balance Analysis
[B] [C] [D] [E] [F] [G] [H]
Description Flow
(HCF)
BOD
(mg/L)
SS
(mg/L)
Flow
(MG)26 BOD (lbs)27 SS (lbs)
Total Plant
Influent 535,925 508 299 401 1,699,409 1,000,485
Net influent 353,711 608 399 265 1,585,656 886,732
Non-Residential Influent
Low 61,420 240 200 46 92,017 76,681
Medium 24,614 500 400 18 76,825 61,640
High 35,950 1,000 600 27 224,413 134,648
Total NonResidential
Influent
121,984
1,740 1,200 91
393,255 272,789
Net Residential
Flow 231,727 508 299 173 734,911 432,556
SFR 156,948 508 299 142 600,857 353,654
MFR 35,016 508 299 32 134,055 78,902
26 Conversion factor: one (1) hundred cubic feet = 0.000748 million gallons. 27 Conversion factor: one (1) milligram per liter = 8.35 pounds per million gallons.

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5.3.8.WASTEWATER UNIT COSTS
The next step of the wastewater COS analysis is to develop unit costs for each cost causation component. This is necessary to allocate the revenue requirement to each customer class in subsequent steps of the COS analysis.

Table 5-26 shows the calculation of unit costs (Line 6). This is developed by taking the total COS allocation for each cost component (Line 1) and dividing by the corresponding total units of service for flow, BOD, SS, customer, and bills shown in Line 3. The resulting unit rates may then be applied to customer classes based on the number of units in each respective class. Flow is recovered across all units of wastewater. BOD and SS unit rates are derived by dividing across the total estimated BOD and SS in pounds per year. Customer costs are divided by the total number of equivalent meters, and billing cost are divided by the number of bills Table 5-26: Wastewater Unit Costs Calculation (Test Year) [A] [B] [C] [D] [E] [F] [H] [G]
Line Description Flow BOD SS Customer Bills
Test Year
Revenue
Requirement
1 Total COS $6,059,986 $1,744,684 $956,762 $0 $249,988 $9,011,421 2 3 Total Units
of Service 313,948 1,128,166 705,345 5,775 53,712
4 Units hcf/yr lb/yr lb/yr equivalent
meters
annualized
bills
5 6 Unit Cost $19.30 $1.55 $1.36 $0.00 $4.65
7 Units hcf lb lb per bill Per bill
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5.3.9.WASTEWATER COST ALLOCATION TO CUSTOMER CLASSES
Table 5-27 shows the allocation of the rate revenue requirement, by cost causation component, to each customer class based on the unit rates developed above in Table 5-26. The units of service shown for each customer class for the Flow, Biological Oxygen Demand, and Suspended Solids (Columns C-E) were previously determined as part of the mass balance analysis (see Table 5-25). The unit rate for each of these components is multiplied by the corresponding number of flow/BOD/SS units determined in Table 5-25 for each class to calculate the total cost for that component, by customer class. The number of equivalent meters per class is multiplied by the unit rate for each Customer to determine the total cost component. Similarly, the total number of bills (e.g., number of accounts multiplied by the number of bills per year) for each class is multiplied by the unit rate for Billing to determine the total cost component for Billing, for each class. This allows for the development of customer-specific COS allocations, as shown below in Table 5-27. Note again that the total amount of revenue to be recovered (the last line of Column H) is the same as the total revenue requirement originally developed in Table 5-19.

Table 5-27: Wastewater Cost Allocation to Customer Classes (Test Year) [A] [B] [C] [D] [E] [F] [G] [H]
Line Customer Class Flow BOD SS Customer Billing Total
1 Residential $3,705,388 $1,136,524 $586,739 $0 $219,773 $5,648,424 2 Single Family $3,029,491 $929,212 $479,712 $0 $210,781 $4,649,196 3 Multifamily
Residential $675,897 $207,312 $107,027 $0 $8,992 $999,228 5 6 Non-Residential $2,354,598 $608,160 $370,023 $0 $30,215 $3,362,997 7 Low Strength $1,185,561 $142,303 $104,014 $0 $20,609 $1,452,486 8 Medium Strength $475,112 $118,808 $83,367 $0 $5,418 $682,704 9 High Strength $693,925 $347,050 $182,642 $0 $4,189 $1,227,806 10 Total $6,059,986 $1,744,684 $956,762 $0 $249,988 $9,011,421 Item 6.f
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5.4.Proposed Wastewater Rates
Section 5.4 shows detailed calculations of proposed wastewater rates through FY 2026-27. The City of Healdsburg’s current fixed wastewater rate structure consists of Fixed Service Charges per dwelling unit for residential customers, and charges by meter size for non-residential customers. All customers are also charged a per unit (HCF) charge based on estimated wastewater flows and the strength of the flows. Residential customers’ variable charge units are based on their average winter consumption (AWC) whereas Non-Residential customers are charged per billed unit of water.

Proposed rate structure modifications include:
» Retire the SFR + ADU Fixed Charge: any SFR customer with two or more dwelling units per parcel will be treated as a MFR customer and subject to the multifamily charge. » Non-Residential Meter-Based Fixed Charges: This study maintains the existing non-residential fixed charge structure by meter size, however, the ratios between the meter sizes are proposed to use calculated flow ratios rather than hydraulic capacity ratios. Raftelis used City of Healdsburg sewer user billing data to calculate average flow per billing period at each meter size. This approach is more representative of wastewater generation by meter size versus ratios which reflect potential water demand by meter size.

Proposed wastewater rates reflect the revenue adjustments and the updated wastewater cost of service analysis, and rate modifications. All Fixed Charges shown are monthly and all volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are rounded up to the nearest penny. All rates are assumed to be implemented at the beginning of each fiscal year on July 1.

5.4.1.PROPOSED WASTEWATER RATES (TEST YEAR)
Table 5-28 shows the calculation of COS wastewater rates for the test year. The revenue requirement associated with each charge Column C was determined from customer class cost allocations in Table 5-27.

The Cost-of-Service analysis identifies the total amount to be recovered from each customer class. The city enlisted Raftelis to evaluate the existing rate structures and propose any modifications that better align with the City's policy objectives. Currently, the city's rate structure recovers 45% of wastewater costs from fixed service charges, with the remaining 55% recovered from volumetric charges based on water use and wastewater generation. This cost recovery share is to ensure an adequate amount of revenue comes from fixed sources to guard against revenue insufficiency. The proposed cost of service analysis maintains this 45/55 split of fixed and variable rate revenue while better harmonizing the degree of fixed revenue between Residential and Non-Residential users.

Currently, the City's Wastewater Enterprise recovers 54% of Residential costs from fixed dwelling unit charges and 29% of Non-Residential costs from fixed meter-based charges. In order to promote fairness in cost recovery across classes while maintaining revenue stability, the proposed rate structures recover the following share of each class's cost of service:
» 50% of Residential costs are recovered through fixed, dwelling unit-based charges. The remaining 50% of the costs to serve Residential users are recovered from the wastewater flow rate, based on each connection's average winter consumption (AWC).
» 39% of Non-Residential costs are recovered through fixed, meter-based charges. The remaining 61% of the costs to serve Non-Residential users are recovered from the wastewater flow rates, based on actual metered water use, and the relative strength (i.e., Low, Medium, or High) of the wastewater generated. NonResidential users pay different wastewater usage rates based on the strength of the wastewater generated.

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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 81 fixed revenue recovery promotes revenue stability while moving towards the same share of fixed/variable cost recovery as Residential users.

These varying rates reasonably recover costs from customers in a manner consistent with how costs are incurred by the wastewater system in collecting, treating, and disposing of wastewater. Overall, the City will maintain the same level of fixed cost recovery which, in conjunction with proposed rate revenue increases, will provide the city with adequate revenues to fully recover projected operational and capital expenditures.

Table 5-28: Proposed Wastewater Rate Calculation (Test Year) [A] [B] [C] [D] [E] [F] [G] [H] [I] [J]
Line Description
Fixed
COS
Costs28
Variable
COS
Costs29
DU/
Acct30
Units
(HCF)
Adjusted
Fixed
COS
Costs
Adjusted
Variable
COS
Costs
Fixed
Charg
e
Volume
Charge
(per hcf)
1 Residential
2 Single
Family $210,781 $4,438,415 3,774 156,948 $2,324,598 $2,324,598 $51.33 $14.71 3 Multifamily $8,992 $990,236 1,227 35,016 $499,614 $499,614 $36.94 $14.71 5 6 Non-Residential
7 Low $20,609 $1,431,877 369 68,244 $672,667 $779,819
Per
Meter
Size
$11.43
8 Medium $5,418 $677,286 97 27,349 $266,729 $415,975
Per
Meter
Size
$15.21
9 High $4,189 $1,223,617 75 39,944 $385,848 $841,958
Per
Meter
Size $21.08
Table 5-29 shows the proposed three-year schedule of wastewater rates for implementation July 2024 through July 2026. All proposed rates in subsequent years are then increased by the proposed revenue adjustments from Table 5-16. All proposed rates are rounded up to the nearest whole cent. 28 Includes customer component costs only.
29 Includes all other cost components (flow, BOD, SS, and Recycled – Treatment). 30 Dwelling Units (DU) applies to residential and Account apply to non-residential Item 6.f
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82 CITY OF HEALDSBURG
Table 5-29: Proposed Three-Year Wastewater Rates Schedule Description Current FY 2025 FY 2026 FY 2027
Residential Service Charges ($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67 $51.33 $60.57 $69.66 SFR + ADU $31.95 N/A N/A N/A
Multi-Family Residential (MFR) $37.80 $36.94 $43.60 $50.14 Flat Rate (Sewer Only SFR) $104.01 $110.18 $130.02 $149.53 Non Residential Service Charges ($/Month/Meter)
Up to 1" $75.75 $83.88 $98.99 $113.84
1 1/2" $148.49 $243.37 $287.18 $330.26
2" $235.77 $396.68 $468.09 $538.31
3" $439.44 $1,279.52 $1,509.84 $1,736.32
4" $730.39 $1,405.05 $1,657.97 $1,906.67
6" $1,966.94 $1,405.05 $1,657.97 $1,906.67
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47 $14.71 $17.37 $19.98
Non Residential
Low Strength $10.31 $11.43 $13.49 $15.52
Medium Strength $15.09 $15.21 $17.95 $20.65
High Strength $22.08 $21.08 $24.88 $28.62
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2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 83

6.Customer Bill Impacts

6.1. Combined Water & Wastewater Monthly Bill Impacts,
SFR
Table 6-1 shows the combined monthly bill impacts for a Single Family Residential customer using 7 hcf of water and an Average Winter Consumption of 4 hcf under current versus proposed rates. This usage level was determined using actual billing data for single family residential customers in FY 2022-23. This impact includes the changes proposed for both water and wastewater, so the total dollar difference is the entire change for a customer receiving both water and wastewater service from the City.

Table 6-1: FY 2023-24 Single Family Residential Bill Impacts (7 HCF water, 4 HCF AWC) Customer Class Proposed
July 2024 Bill Current Bill Difference ($)
Difference
(%)
Single Family Residential $200.73 $166.52 $34.21 21%
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EXHIBIT B – WATER AND WASTEWATER USAGE FEES ORDINANCE
WATER RATES:

A. For the purposes of this imposition of the water rate schedule for Fiscal Years (FY) 2024- 2025, 2025-2026, and 2026-2027, the term:
1) “City Customer” shall mean any person, corporation, or other entity that receives City water services, regardless of whether City water services are provided to property within the City, or property outside the boundaries of the City. 2) “Single Family Residential” (SFR) means a single dwelling per parcel with sleeping and cooking facilities and intended for domestic use and in which the occupants live as a single housekeeping unit that is not part of a Multiple Dwelling. 3) “Multi-Family Residential” (MFR) means two or more residential dwelling units per parcel with sleeping and cooking facilities and intended for domestic use. 4) “Commercial” water service means any water service to a non-residential building or purpose, other than irrigation, with annual usage characteristics consistent with typical commercial use within the City of Healdsburg.
5) “Industrial” water service means any water service to a non-residential building or purpose, other than irrigation, that is classified as an irrigation use within the City’s billing system. Industrial customers generally have high annual peaking factors and significant average monthly water usage.
6) “Irrigation” water service means any dedicated water service that provides potable water solely for irrigation purposes, where none of the water consumed returns to the City’s sewer system.

B. Monthly Service Charges and Per Unit water rates are set as follows.

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Fixed Monthly Service Charges July 1, 2024 July 1, 2025 July 1, 2026 Up to 1-inch $41.34 $49.61 $56.06
1 ½-inch $77.94 $93.53 $105.69
2-inch $121.86 $146.24 $165.26
3-inch $238.98 $286.78 $324.07
4-inch $370.75 $444.90 $502.74
6-inch $736.76 $884.12 $999.06
Residential Usage Charge $/HCF
(SFR & MFR)
July 1, 2024 July 1, 2025 July 1, 2026
Tier-1 (0 to 5 HCF) $6.48 $7.78 $8.80
Tier-2 (over 5 up to 10 HCF) $8.41 $10.10 $11.42
Tier-3 (usage over 10 HCF) $10.80 $12.96 $14.65
Non-Residential Usage Charge by Classes
($/HCF)
July 1, 2024 July 1, 2025 July 1, 2026
Commercial $7.61 $9.14 $10.33
Industrial $9.49 $11.39 $12.88
Landscape $11.06 $13.28 $15.01
Riverview HOA $1.93 $2.32 $2.63
1) All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). 2) Tier-1 residential usage is up to the first 5 hundred cubic feet (HCF) of water per monthly billing period.
3) Tier-2 residential usage encompasses usage greater than 5 and up to and including 10 HCF per monthly billing period.
4) Tier-3 residential usage comprises all units of water usage exceeding 10 HCF per monthly billing period.
5) Tier usage allocations will be assigned based on the number of residential dwelling units served per metered water service connection. For example, a single water meter serving 4 dwelling units will be allocated four times the Tier-1 usage, then four times the Tier-2 usage, with all usage exceeding the Tier-1 and Tier-2 allocations billed at the Tier-3 rate. 6) The volumetric use charge applicable to Riverview HOA’s irrigation services is per terms of the 1997 order of condemnation.
7) At the conclusion of each calendar year, the City will re-evaluate usage patterns for nonresidential customers and re-assign annually, as necessary, customer classifications between commercial and industrial water services. The City’s Finance Director may adjust customer classifications to maintain accuracy in customer class assignments. The Finance Director’s determination in response to a reclassification request is final.

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WASTEWATER RATES:

A. For the purposes of this imposition of the wastewater rate schedule for Fiscal Years (FY) 2024-2025, 2025-2026, and 2026-2027, the term:
1) “City Customer” shall mean any person, corporation, or other entity that receives City wastewater services, regardless of whether City wastewater services are provided to property within the City, or property outside the boundaries of the City. 2) “Single Family Residential” means a single dwelling per parcel with sleeping and cooking facilities and intended for domestic use and in which the occupants live as a single housekeeping unit that is not part of a Multiple Dwelling. 3) “Multi-Family Residential” means two or more residential dwelling units per parcel with sleeping and cooking facilities and intended for domestic use. 4) “Average Winter Consumption” (AWC) or “Residential Seasonal Sewer Average” (SSA) is the 3-month average of residential metered water usage during the January, February, March, and April billing periods, with the highest of the four-month usage being omitted. This average will be calculated in May of each year and establish the yearlong wastewater usage for residential services.

B. Monthly Service Charges and per hundred cubic feet (HCF) of usage are set as follows.

Fixed Monthly Service Charges July 1, 2024 July 1, 2025 July 1, 2026 Single Family Residential (SFR) $51.33 $60.57 $69.66
Multi-Family Residential (MFR) $36.94 $43.60 $50.14
Flat Rate (sewer only SFR) $110.18 $130.02 $149.53
Non-Residential Service Charge
($/Month/Service)
July 1, 2024 July 1, 2025 July 1, 2026
Up to 1-inch $83.88 $98.99 $113.84
1½-inch $243.37 $287.18 $330.26
2-inch $396.68 $468.09 $538.31
3-inch $1,279.52 $1,509.84 $1,736.32
4-inch $1,405.05 $1,657.97 $1,906.67
6-inch $1,405.05 $1,657.97 $1,906.67
Wastewater Use Charges $/HCF July 1, 2024 July 1, 2025 July 1, 2026 Residential Usage Charge (SFR & MFR) $14.71 $17.37 $19.98 Non-Residential $/HCF
Low Strength $11.43 $13.49 $15.52
Medium Strength $15.21 $17.95 $20.65
High Strength $21.08 $24.88 $28.62
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1) All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). 2) All residential use charges are based upon their average winter consumption as calculated each May.
3) All non-residential use charges, where there is no dedicated wastewater flow meter, are based upon billed unit of water within the same monthly billing period. 4) Residential Flat Rate fees apply, per dwelling unit, to dwellings connected to the City’s sewer system without a City metered water service.
5) Non-Residential customers taking City wastewater services but not metered City water service will be assigned monthly fixed charges and usage fees based upon similar businesses.

C. Classification of Low, Medium, and High Strength Non-Residential Customers is per the table below.

Use Type Low Medium High
Auto repair / Service X
Bakery (production) X
Bar / Tavern / Cocktail Lounge (with prepackaged foods and snacks only)
X
Bar / Tavern / Cocktail Lounge (with food preparation or commercial kitchen)
X
Barber / Beauty salon X
Brewery, Distillery, and Beverage Production X
Coffee Shop (with prepackaged foods and snacks only) X
Cannabis Retail Dispensary (no production or processing) X Cannabis and CBD Processing X
Car wash X
Ceramics manufacturing X
Church / Lodge (no food preparation or commercial kitchen) X Church / Lodge (with food preparation or commercial kitchen) X Commercial kitchen (Including schools, catering, grange, meeting hall)
X
Community facility (without food preparation or commercial kitchen)
X
Community facility (with food preparation or commercial kitchen) X Creamery (production) X
Daycare Facility X
Food Manufacturing X
Gas station (no food preparation, snack bar, or commercial kitchen)
X
Gas station (with food preparation/snack bar) X
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Gas Station (with commercial kitchen or restaurant) X
Grocery (without food preparation or commercial kitchen) X Grocery (with food preparation or commercial kitchen) X Health club / Spa (no food preparation or commercial kitchen) X Health club / Spa (with food preparation/snack bar) X
Hospital / Residential care facility (no food preparation or commercial kitchen)
X
Hospital / Residential care facility (with food preparation or commercial kitchen)
X
Hotel / Motel (with food preparation, commercial kitchen, or restaurant)
X
Hotel / Motel / Residential visitor lodging (no restaurant or commercial kitchen)
X
Ice cream / Frozen yogurt X
Laundromat / Dry cleaners X
Medical / Dental office X
Mortuary X
Movie theater (without food preparation or commercial kitchen) X Movie theater (with food preparation or commercial kitchen) X Office X
Park X
Print Shop X
Restaurant/Café X
Retail X
School (no commercial kitchen) X
School (with food preparation or commercial kitchen) X
Warehouse (dry storage) X
Wine tasting (with prepackaged foods and snacks only) X Wine tasting (with food preparation or commercial kitchen) X Winery (production) X
1) For business with wastewater discharges that do not fit within the generalized categories above, have significant pre-treatment of wastewater, or have routine and validated measurements of total suspended solids (TSS) and biochemical oxygen demand (BOD) the City Engineer will assign a wastewater strength classification with the issuance of an industrial discharge permit.

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Spill Emergency Response
Plan
Prepared by David Patzer, DKF Solutions Group
(707) 373-9709 [email protected]
Copyright © 2004-2019 DKF Solutions Group, LLC. All rights reserved. 2023 City of Healdsburg Edits
Effective Date:

Revised Date:

Approved by:

Signature:

Date:

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SERP Page 1
Sanitary Sewer Spill Emergency Response Plan (SERP)

1. Purpose

2. Policy

3. Definitions as used in this SERP

4. Regulatory Requirements for SERP Element of SSMP

5. Goals

6. Sanitary Sewer Spill (Spill) Detection and Notification

7. Spill Response Procedures

8. Recovery and Cleanup

9. Water Quality

10. Sewer Backup Into/Onto Private Property Claims Handling Policy

11. Notification, Reporting, Monitoring and Recordkeeping Requirements

12. Post Spill Event Debriefing

13. Failure Analysis Investigation

14. Spill Response Training

15. High Priority Assets

16. Authority

17. Appendices
Appendix A: Sewer Spill Reference Guide Pamphlet: Your Responsibilities as a Private Property Owner Appendix B: Door Hanger
Appendix C: Sanitary Sewer Spill/Backup Response Workbook Instructions......................................................................................................Workbook Cover Tab 1: Regulatory Reporting
o Regulatory Reporting Guide .................................................................. A-1 o Regulatory Reporting Contacts and Authorization.................................... -2 o Regulatory Reporting Checklist ................................................................ -3 Tab 2: Flowchart.......................................................................................................B-1 Tab 3: Sanitary Sewer Spill Report ……..................................................................C-1 Tab 4: Volume Estimation
o Volume Estimation Computations and Examples .................................. D-1 o Eyeball Estimation Method ....................................................................... -2 o Duration and Flow Rate Comparison Method........................................... -3 o Area/Volume Method ................................................................................ -4 o Drawing Worksheet................................................................................... -5 Tab 5: Backup Forms
o Backup Forms Checklist ......................................................................... E-1 o CIRA Instructions for Handling Claims ….................................................... -2 o First Responder Form ................................................................................ -3 o Declination of Cleaning Services ............................................................... -4 o Customer Information Letter ...................................................................... -5 o Your Responsibilities as a Private Property Owner .................................. -6 Tab 5: Failure Analysis ..............................................................................................F-1 City of Healdsburg: Spill Emergency Response Plan
Table of Contents
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Sanitary Sewer Spill Emergency Response Plan

1. Purpose
The purpose of the City of Healdsburg’s Spill Emergency Response Plan (SERP) is to support an orderly and effective response to Sanitary Sewer Spills (Spills). The SERP provides guidelines for City personnel to follow in responding to, cleaning up, and reporting Spills that may occur within the City’s service area. This SERP satisfies the SWRCB Statewide General Waste Discharge Requirements (GWDR), which require wastewater collection agencies to have a Spill Emergency Response Plan.

2. Policy
The City’s employees are required to report all sanitary sewer spills found and to take the appropriate action to secure the sanitary sewer spill area, properly report to the appropriate regulatory agencies, relieve the cause of the spill, and ensure that the affected area is cleaned as soon as possible to minimize health hazards to the public and protect the environment. The City’s goal is to respond to sewer system spills as soon as possible following notification. The City will follow reporting procedures in regards to sewer spills as set forth by the North Coast Regional Water Quality Control Board (NCRWQCB) and the California State Water Resources Control Board (SWRCB).

3. Definitions as Used in This SERP
CALIFORNIA INTEGRATED WATER QUALITY SYSTEM (CIWQS): Refers to the State Water Resources Control Board online electronic reporting system that is used to report Spills, certify completion of the SSMP, and provide information on the sanitary sewer system.

FOG – Fats, Oils, and Grease: Refers to fats, oils, and grease typically associated with food preparation and cooking activities that can cause blockages in the sanitary sewer system.

LEGALLY RESPONSIBLE OFFICIAL (LRO): Refers to an individual who has the authority to certify reports and other actions that are submitted through CIWQS.

MAINLINE SEWER: Refers to City wastewater collection system piping that is not a private lateral connection to a user.

MAINTENANCE HOLE OR MANHOLE: Refers to an engineered structure that is intended to provide access to a sanitary sewer for maintenance and inspection.

NOTIFICATION OF A Spill: Refers to the time at which the City becomes aware of a Spill event through observation or notification by the public or other source.

NUISANCE - California Water Code section 13050, subdivision (m), defines nuisance as anything that meets all of the following requirements:
a. Is injurious to health, or is indecent or offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property. b. Affects at the same time an entire community or neighborhood, or any considerable number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal. c. Occurs during, or as a result of, the treatment or disposal of wastes.

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PREVENTATIVE MAINTENANCE: Refers to maintenance activities intended to prevent failures of the wastewater collection system facilities (e.g. cleaning, CCTV, inspection).

PRIVATE LATERAL SEWAGE DISCHARGES – Sewage overflow discharges that are caused by blockages or other problems within a privately-owned lateral.

SANITARY SEWER Spill (Spill or Spill) - Any overflow, spill, release, discharge or diversion of untreated or partially treated wastewater from a sanitary sewer system. Spills include:
(i) Overflows or releases of untreated or partially treated wastewater that reach waters of the State; (ii) Overflows or releases of untreated or partially treated wastewater that do not reach waters of the State; and
(iii) Wastewater backups into buildings and on private property that are caused by blockages or flow conditions within the publicly owned portion of a sanitary sewer system.

Spills that include multiple appearance points resulting from a single cause will be considered one Spill for documentation and reporting purposes in CIWQS.

NOTE: Wastewater backups into buildings caused by a blockage or other malfunction of a building lateral that is privately owned are not Spills.

Spill Categories:

Category 1: Discharges of untreated or partially treated wastewater of any volume resulting from an enrollee’s sanitary sewer system failure or flow condition that:
• Reach surface water or surface water body that contains no flow or volume of water, or
• Reach a Municipal Separate Storm Sewer System (MS4) and are not fully captured and returned to the sanitary sewer system or not otherwise captured and disposed of properly. Any volume of wastewater not recovered from the MS4 is considered to have reached surface water unless the storm drain system discharges to a dedicated storm water or groundwater infiltration basin (e.g., infiltration pit, percolation pond).

A spill from a City-owned and/or operated lateral that discharges to a surface water is a Category 1 spill.

Category 2: Discharge of untreated or partially treated wastewater 1,000 gallons or greater resulting from a sanitary sewer system failure or flow condition that :
• Does not reach surface water or surface water body that contains no flow or volume of water
• The entire Spill discharged to the storm drain system was fully recovered and disposed of properly.

A spill of 1,000 gallons or greater that spills out of a lateral and is caused by a failure or blockage in the sanitary sewer system, is a Category 2 spill.

Category 3: Discharge of untreated or partially treated wastewater greater than 50 gallons and less than 1,000 gallons resulting from a sanitary sewer system failure or flow condition that either:
• Does not reach surface water, a drainage channel, or an MS4, or • The entire Spill discharged to the storm drain system was fully recovered and disposed of properly.

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by a failure or blockage in the sanitary sewer system, is a Category 3 spill.

Category 4: Discharge of untreated or partially treated wastewater less than 50 gallons resulting from a sanitary sewer system failure or flow condition that either:
• Does not reach surface water, a drainage channel, or an MS4, or • The entire Spill discharged to the storm drain system was fully recovered and disposed of properly.

A spill of less than 50 gallons that spills out of a lateral and is caused by a failure or blockage in the sanitary sewer system, is a Category 4 spill.

SANITARY SEWER SYSTEM: Any publicly-owned system of pipes, pump stations, sewer lines, or other conveyances, upstream of a wastewater treatment plant headworks used to collect and convey wastewater to the publicly owned treatment facility. Temporary storage and conveyance facilities (such as vaults, temporary piping, construction trenches, wet wells, impoundments, tanks, etc.) are considered to be part of the sanitary sewer system, and discharges into these temporary storage facilities are not considered to be Spills.

SENSITIVE AREA: Refers to areas where a Spill could result in a fish kill or pose an imminent or substantial danger to human health (e.g. parks, aquatic habitats, etc.) SEWER SERVICE LATERAL: Refers to the piping that conveys sewage from the building to the City’s wastewater collection system.

UNTREATED OR PARTIALLY TREATED WASTEWATER: Any volume of waste discharged from the sanitary sewer system upstream of a wastewater treatment plant headworks.

WATERS OF THE STATE: Waters of the State means any surface water, including saline waters, within the boundaries of California. In case of a sewage spill, storm drains are considered to be waters of the State unless the sewage is completely contained and returned to the wastewater collection system and that portion of the storm drain is cleaned.

4. State Regulatory Requirements for Element 6, Spill Emergency Response Plan
GWDR Requirement
The collection system agency shall develop and implement a spill emergency response plan that identifies measures to protect public health and the environment. At a minimum, this plan must include the following:
(a) Proper notification procedures so that the primary responders and regulatory agencies are informed of all Spills in a timely manner;
(b) A program to ensure appropriate response to all Spills; (c) Procedures to ensure prompt notification to appropriate regulatory agencies and other potentially affected entities (e.g. health agencies, regional water boards, water suppliers, etc.) of all Spills that potentially affect public health or reach the waters of the State in accordance with the Monitoring and Reporting Program (MRP). All Spills shall be reported in accordance with this MRP, the California Water Code, other State Law, and other applicable Regional Water Board Waste Discharge Requirements or National Pollutant Discharge Elimination System (NPDES) permit requirements. The Sewer System Management Plan should identify the officials who will receive immediate notification; (d) Procedures to ensure that appropriate staff and contractor personnel are aware of and follow the Spill Emergency Response Plan and are appropriately trained;
(e) Procedures to address emergency operations, such as traffic and crowd control and other necessary response activities; and
(f) A program to ensure that all reasonable steps are taken to contain untreated wastewater and prevent discharge of untreated wastewater to Waters of the State and minimize or correct any adverse impact on the environment resulting from the Spills, including such accelerated or additional monitoring as may be necessary to determine the nature and impact of the discharge. (g) Procedures to remove sewage from drainage conveyance system.

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(h) Procedures to clean the spill area and drainage conveyance system in a manner that does not inadvertently impact beneficial uses in the receiving waters. (i) Lists of technologies, practices, equipment, and interagency coordination to expedite spill containment and recovery.
(j) Procedures to implement pre-planned coordination and collaboration with storm drain agencies and other utility agencies/departments prior, during, and after a spill even. (k) Processes to conduct post-spill assessments of spill response activities. (l) Requirements for documenting and reporting spill events. (m)A requirement to annually review and assess effectiveness of the Spill Emergency Response Plan, and update the Plan as needed.

The Sewer System Management Plan and critical supporting documents are available to the public at www.healdsburg.gov.

5. Goals
The City’s goals with respect to responding to Spills are:
• Work safely;
• Respond quickly to minimize the volume of the Spill;
• Eliminate the cause of the Spill;
• Prevent sewage system overflows or leaks from entering the storm drain system or receiving waters to the maximum extent practicable;
• Contain the spilled wastewater to the extent feasible; • Minimize public contact with the spilled wastewater;
• Mitigate the impact of the Spill;
• Meet the regulatory reporting requirements;
• Evaluate the causes of failure related to certain Spills; and • Revise response procedures resulting from the debrief and failure analysis of certain Spills.

6. Spill Detection and Notification
The processes that are employed to notify the City of the occurrence of a Spill include: observation by the public, receipt of an alarm, or observation by City staff during the normal course of their work.

The City operates 11 wastewater lift stations. In the event of any pump failure, the high-level sensor activates the SCADA alarm system and the City is contacted. To prevent overflow, wastewater from the wet well can either be pumped into a vacuum truck for disposal to a nearby sanitary sewer manhole, or bypassed around the station into the sanitary sewer system.

6.1 PUBLIC OBSERVATION
Public observation is the most common way that the City is notified of blockages and spills. Contact numbers and information for reporting sewer spills and backups are in the phone book and on the City’s website www.healdsburg.gov. The City’s telephone number (Dispatch) for reporting sewer problems is (707) 431-7000. Or 855-755-6586.

Normal Work Hours
When a report of a sewer spill or backup is made during normal work hours, Dispatch answers the call. Dispatch contacts the Utility Maintenance Superintendent or designee, who will dispatch a Public Works Crew.

After Hours
After hours service calls are answered by Dispatch, which will notify the On-Call Employee.

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When calls are received, either during normal work hours or after hours, dispatch will collect the following information:
• Time and date of call
• Specific location of potential problem
• Nature of call
• In case of Spill, estimated start time of overflow
• Caller’s name and telephone number
• Caller’s observation (e.g., odor, duration, location on property, known impacts, indication if surface water impacted, appearance at cleanout or manhole) • Other relevant information
If the overflow/backup is not in the service area the customer is given the contact information for the responsible agency and the agency is notified.

If the overflow/backup is in the City’s service area, a Public Works Crew is dispatched and instructed to complete the Sanitary Sewer Spill/Backup Response Workbook.

6.2 CITY STAFF OBSERVATION
City staff conducts periodic inspections of its sewer system facilities as part of their routine activities. Any problems noted with the sewer system facilities are reported to appropriate City staff who, in turn, respond to emergency situations. Work orders are issued to correct non-emergency conditions.

6.3 CONTRACTOR OBSERVATION
The following procedures are to be followed in the event that a contractor/plumber causes or witnesses a Sanitary Sewer Spill. If the contractor/plumber causes or witnesses a Spill they should:

1. Immediately notify the City and Dispatch.

2. Protect storm drains.

3. Protect the public.

4. Provide Information to the City Public Works Crew such as start time, appearance point, suspected cause, weather conditions, etc.

5. Direct ALL media and public relations requests to the City Public Information Officer.

6.4 NO OBSERVATION
If there are no witnesses or no call was received for a Spill, the Public Works Crew will contact nearby residences or business owners in the vicinity of the Spill, in an attempt to obtain information that brackets a given start time that the Spill began. This information will be collected and placed with records for the specific Spill.

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7. Spill Response Procedures

7.1 Sewer Spill/Backup Response Summary
The City will respond to Spills as soon as feasible following notification of an overflow/backup or unauthorized discharge.

If it is not possible that the overflow/backup is due to a failure in the City-owned/maintained sewer lines, the Public Works Crew performs the following:
• Follows the instructions in the Sanitary Sewer Spill/Backup Response Workbook. • If the customer is not home the Public Works Crew completes the Door Hanger and leaves it on the customer’s door.
• If the customer is home the Public Works Crew:
o Explains that the blockage is in the customer’s lateral and the City does not have legal authority to maintain or perform work on privately owned laterals. o Recommends to the customer that they hire a contractor to clear their line. o Gives the customer the Sewer Spill Reference Guide pamphlet.

If it is possible that the overflow/backup is due to a failure in the City-owned/maintained sewer lines the Collections Crew and Utilities Crew:
• Follow the instructions in the Sanitary Sewer Spill/Backup Response Workbook. • Notify Water/Wastewater Operations Superintendent of the incident. • Relieves blockage and clean impacted areas.
• Forwards the completed Sanitary Sewer Spill/Backup Response Workbook to the Water/Wastewater Operations Superintendent.

The Water/Wastewater Operations Superintendent performs required regulatory reporting in accordance with the Sanitary Sewer Spill/Backup Response Workbook’s Regulatory Reporting section.

If the overflow has impacted private property, the Public Works Crew:
• Follows the instructions in the Sanitary Sewer Spill/Backup Response Workbook. • Provides the customer with forms and information as indicated in the Sanitary Sewer Spill/Backup Response Workbook.
• Forwards the completed Sanitary Sewer Spill/Backup Response Workbook to the Utility Maintenance Superintendent.

The Utility Maintenance Superintendent:
• Reviews incident reports, claim form and other incident information and forwards, as appropriate, to:

George Hills Co / CIRA
[email protected]
With a cc to: Kin Ong, [email protected]
Amy Northam, [email protected]
Erike Young, [email protected]
• Communicates with claimant as appropriate.

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• Communicates with George Hills Co / CIRA to adjust and administer the claim to closure.

7.2 First Responder Priorities
The first responder’s priorities support the City’s goals when responding to Spills including:
• To follow safe work practices.
• To respond promptly with the appropriate and necessary equipment. • To contain the spill wherever feasible.
• To restore the flow as soon as practicable.
• To minimize public access to and/or contact with the spilled sewage. • To promptly notify the Water/Wastewater Operations Superintendent in event of any Spill. • To return the recovered sewage to the sewer system or transport to treatment plant. • To restore the area to its original condition (or as close as possible).

7.3 Safety
The first responder is responsible for following safety procedures at all times. Special safety precautions must be observed when performing sewer work. There may be times when City personnel responding to a sewer system event are not familiar with potential safety hazards peculiar to sewer work. In such cases it is appropriate to take the time to discuss safety issues, consider the order of work, and check safety equipment before starting the job.

7.4 Initial Response
The first responder must respond to the reporting party/problem site and visually check for potential sewer stoppages or overflows.

The first responder will:
• Note arrival time at the site of the overflow/backup. • Verify the existence of a public sewer system spill or backup. • Take photos of overflowing manhole(s)/cleanout(s).
• Determine if the overflow or blockage is from a public or private sewer. • Identify and assess the affected area and extent of spill. • Estimate volume of spill
• Contact caller if time permits.
• If the spill is large or in a sensitive area, document conditions upon arrival with photographs. Decide whether to proceed with clearing the blockage to restore the flow or to initiate containment measures. The guidance for this decision is:
o Small spills (i.e., spills that are easily contained) – proceed with clearing the blockage. o Moderate or large spill where containment is anticipated to be simple – proceed with the containment measures.
o Moderate or large spills where containment is anticipated to be difficult – proceed with clearing the blockage; however, whenever deemed necessary, call for additional assistance and implement containment measures.

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7.5 Equipment
This section provides a list of specialized equipment that is required to support this Spill Emergency Response Plan.
• Closed Circuit Television (CCTV) Inspection Unit – A CCTV Inspection Unit is required to determine the cause for all Spills from gravity sewers. • Camera -- A digital or disposable camera is required to record the conditions upon arrival, during clean up, and upon departure.
• Emergency Response Trucks -- A utility body pickup truck, or open bed is required to store and transport the equipment needed to effectively respond to sewer emergencies. The equipment and tools will include containment and clean up materials.
• Portable Generators, Portable Pumps, Piping, and Hoses – Equipment used to bypass pump, divert, or power equipment to mitigate a Spill.
• Combination Sewer Cleaning Trucks -- Combination high velocity sewer cleaning trucks with vacuum tanks are required to clear blockages in gravity sewers, vacuum spilled sewage, and wash down the impacted area following the Spill event.
• Air plugs, sandbags and plastic mats
• Spill Sampling Kits
• Portable Lights
Standard operating procedures for equipment that may be necessary in the event of a sanitary sewer overflow or backup can be found in the Corp Yard.

7.6 Initiate Spill Containment Measures
The first responder will attempt to contain as much of the spilled sewage as possible using the following steps:
• Determine the immediate destination of the overflowing sewage. • Plug storm drains using air plugs, sandbags, and/or plastic mats to contain the spill, whenever appropriate. If spilled sewage has made contact with the storm drainage system, attempt to contain the spilled sewage by plugging downstream storm drainage facilities. • Contain/direct the spilled sewage using dike/dam or sandbags. • Pump around the blockage/pipe failure.

For procedures refer to the Sanitary Sewer Spill/Backup Response Workbook.

7.7 Restore Flow
Using the appropriate cleaning equipment, set up downstream of the blockage and hydro-clean upstream from a clear manhole. Attempt to remove the blockage from the system and observe the flows to ensure that the blockage does not reoccur downstream. If the blockage cannot be cleared within a reasonable time from arrival, or sewer requires construction repairs to restore flow, then initiate containment and/or bypass pumping. If other assistance is required, immediately contact the Water/Wastewater Operations Superintendent. For procedures refer to the Sanitary Sewer Spill/Backup Response Workbook.

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8. Recovery and Cleanup
The recovery and cleanup phase begins immediately after the flow has been restored and the spilled sewage has been contained to the extent possible. The Spill recovery and cleanup procedures are:

8.1 Estimate the Flow and Volume of Spilled Sewage
To estimate the flow rate, crew members will use the SSCSC Manhole Overflow Gauge if the same style of manhole cover is observed overflowing. A variety of approaches exist for estimating the volume of a sanitary sewer spill. Crew members should use the method most appropriate to the sewer overflow in question and reference the Sanitary Sewer Spill/Backup Response Workbook which provides three (3) methods:
• Eyeball Estimation Method
• Duration and Flow Rate Calculation Method
• Area/Volume Method
In addition, wherever and whenever possible, document the estimate using photos and/or video of the Spill site before and during the recovery operation.

8.2 Recovery of Spilled Sewage
Vacuum up and/or pump the spilled sewage and rinse water and discharge it back into the sanitary sewer system.

8.3 Clean-up and Disinfection
Clean up and disinfection procedures will be implemented to reduce the potential for human health issues and adverse environmental impacts that are associated with a Spill event. The procedures described are for dry weather conditions and will be modified as required for wet weather conditions. Where cleanup is beyond the capabilities of City staff, a cleanup contractor will be used.

Private Property
City crews are responsible for the cleanup when the property damage is minor in nature and is outside of private building dwellings, such as in front, side and backyards, easements, etc. In all other cases, affected property owners can call a water damage restoration contractor to complete the cleanup and restoration. If the overflow into property is the definite cause of City system failure, the property owner can call out a water damage restoration contractor to complete the cleanup and restoration. In both cases, property owners may pick up City claim forms from the City Clerk's office.

Hard Surface Areas
Collect all signs of sewage solids and sewage-related material either by protected hand or with the use of rakes and brooms. Wash down the affected area with clean water and/or deozyme or similar non-toxic biodegradable surface disinfectant until the water runs clear. The flushing volume will be approximately three times the estimated volume of the spill. Take reasonable steps to contain and vacuum up the wastewater. Allow area to dry. Repeat the process if additional cleaning is required.

Landscaped and Unimproved Natural Vegetation
Collect all signs of sewage solids and sewage-related material either by protected hand or with the use of rakes and brooms. Wash down the affected area with clean water until the water runs clear. The flushing volume will be approximately three times the estimated volume of the spill.

Either contain or vacuum up the wash water so that none is released. Allow the area to dry.

Repeat the process if additional cleaning is required.

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Natural Waterways
The Department of Fish and Wildlife will be notified by CalOES for Spills greater than or equal to 1,000 gallons.

Wet Weather Modifications
Omit flushing and sampling during heavy storm events (i.e., sheet of rainwater across paved surfaces) with heavy runoff where flushing is not required and sampling would not provide meaningful results.

In the event that an overflow occurs at night, the location will be inspected first thing the following day.

The field crew will look for any signs of sewage solids and sewage-related material that may warrant additional cleanup activities.

8.4 Public Notification
Signs will be posted and barricades put in place to keep vehicles and pedestrians away from contact with spilled sewage. County Environmental Health instructions and directions regarding placement and language of public warnings will be followed. Additionally, the Water/Wastewater Operations Superintendent will use their best judgment regarding supplemental sign placement in order to protect the public and local environment. Signs will not be removed until directed by County Environmental Health, the Water/Wastewater Operations Superintendent or designee.

Creeks, streams and beaches that have been contaminated as a result of a Spill will be posted at visible access locations until the risk of contamination has subsided to acceptable background bacteria levels.

The area and warning signs, once posted, will be checked every day to ensure that they are still in place.

Photographs of sign placement will be taken.

When contact with the local media is deemed necessary by regulating agencies, the Public Information Officer or their designee will provide the media with all relevant information.

9. Water Quality

9.1 Waters of the State
The following Waters of the State are in the City of Healdsburg’s service area:
• Russian River
• Foss Creek
• Dry Creek
• West Slough
• Norton Slough

9.2 Water Quality Sampling and Testing
Water quality sampling and testing will be performed for Category 1 Spills of 50,000 gallons or greater to determine the extent and impact of the Spill. The water quality sampling procedures must be implemented within 48 hours and include the following:
• The first responders or designated staff will collect samples as soon as possible after the discovery and mitigation of the Spill event.
• The water quality samples will be collected from upstream of the spill, from the spill area, and Item 6.f
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downstream of the spill in flowing water (e.g. creeks). The water quality samples will be collected near the point of entry of the spilled sewage.
• The samples shall then be brought to the Water Reclamation Facility.

9.3 Water Quality Monitoring Plan
The State Spill Monitoring and Reporting Program will be implemented immediately upon discovery of any Category 1 Spill of 50,000 gallons or greater in order to assess impacts from Spills to surface waters.

The Spill Water Quality Monitoring Program will:

1. Contain protocols for water quality monitoring.

2. Account for spill travel time in the surface water and scenarios where monitoring may not be possible (e.g. safety, legal right to access, etc.)

3. Require water quality analyses for ammonia and bacterial indicators to be performed by an accredited or certified laboratory.

4. Require monitoring instruments and devices used to implement the Spill Water Quality Monitoring Program to be properly maintained and calibrated, including any records to document maintenance and calibration, as necessary, to ensure their continued accuracy.

5. Within 18 hours of the City becoming aware of the Spill, require water quality sampling for fecal coliform, E. Coli, and ammonia.

6. Observe proper chain of custody procedures.

7. If the City’s current standard operating procedures (SOP’s) cannot fully mitigate a Spill and if it is determined that the Spill may pose an imminent and substantial endangerment to public health or the environment, the City shall consult a qualified biologist, health care specialist or equivalent professional to assist.

9.4 Spill Technical Report
The City will submit a Spill Technical Report to the CIWQS Online Spill Database within 45 calendar days of the Spill end date for any Category 1 Spill of 50,000 gallons or greater. The Water/Wastewater Operations Superintendent will supervise the preparation of this report and will certify this report. This report, which does not preclude the Water Boards from requiring more detailed analyses if requested, shall include at a minimum, the following:

Causes and Circumstances of the Spill:
• Complete and detailed explanation of how and when the Spill was discovered. • Diagram showing the Spill failure point, appearance point(s), and final destination(s). • Detailed description of the methodology employed and available data used to calculate the volume of the Spill and, if applicable, the Spill volume recovered. • Detailed description of the cause(s) of the Spill.
• Copies of original field crew records used to document the Spill. • Historical maintenance records for the failure location.

City’s Response to Spill:
• Chronological narrative description of all actions taken by the City to terminate the spill. • Explanation of how the SSMP Spill Emergency Response Plan was implemented to respond to and mitigate the Spill.
• Final corrective action(s) completed and/or planned to be completed, including a schedule for actions not yet completed.

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Water Quality Monitoring:
• Description of all water quality sampling activities conducted including analytical results and evaluation of the results.
• Detailed location map illustrating all water quality sampling points.

10. Sewer Backup Into/Onto Private Property Claims Handling Policy It is the policy of the City that a claims form shall be offered to anyone wishing to file a claim. The following procedures will be observed for all sewer overflows/backups into/onto private property:

City staff will offer a City claim form irrespective of fault whenever it is possible that the sanitary sewer backup may have resulted from an apparent blockage in the City-owned sewer lines or whenever a City customer requests a claim form. The claim may later be rejected if subsequent investigations into the cause of the loss indicate the City was not at fault.
• It is the responsibility of the Utilities Crew to gather information regarding the incident and notify the Water/Wastewater Operations Superintendent or his/her designee. • It is the responsibility of the City Clerk or his/her designee to review all claims and to oversee the adjustment and administration of the claim to closure.

11. Notification, Reporting, Monitoring and Recordkeeping Requirements In accordance with the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (Spill GWDRs), the City of Healdsburg maintains records for each sanitary sewer overflow. Records include:
• Documentation of response steps and/or remedial actions • Photographic evidence to document the extent of the Spill, field crew response operations, and site conditions after field crew Spill response operations have been completed. The date, time, location, and direction of photographs taken will be documented.
• Documentation of how any estimations of the volume of discharged and/or recovered volumes were calculated including all assumptions made.
• Regulator required notifications are outlined in Section 11.1 on the following page.

11.1 Regulator Required Notifications

ELEMENT REQUIREMENT METHOD
NOTIFICATION Within two hours of becoming aware of any
Category 1 Spill greater than or equal to 1,000
gallons discharged to surface water or spilled in a
location where it probably will be discharged to
surface water, the City will notify the California
Office of Emergency Services (CalOES) and obtain
a notification control number.

Call Cal OES at:
(800) 852-7550
REPORTING • Category 1 Spill: The City will submit draft report within three business days of becoming
aware of the Spill and certify within 15 calendar
days of Spill end date.
• Category 2 Spill: The City will submit draft
report within 3 business days of becoming
aware of the Spill and certify within 15 calendar
days of the Spill end date.
• Category 3 Spill: The City will submit certified
report within 30 calendar days of the end of
month in which Spill the occurred.
• Category 4 Spill: The City will report and
certify the estimated total spill volume exiting
the sanitary sewer system, and the total
number of all Category 4 spills to the online
CIWQS Sanitary Sewer System Database,
within 30 calendar days after the end of the
month in which the spills occurred.
• Spill Technical Report: The City will submit
within 45 calendar days after the end date of
any Category 1 Spill in which 50,000 gallons or
greater are spilled to surface waters. Annually
upload and certify a report, in an appropriate
digital format, of all recordkeeping of spills to
the online CIWQS Sanitary Sewer System
Database, by February 1st after the end of the
calendar year in which the spills occurred.
• “No Spill” Certification: The City will certify that
no Spills occurred within 30 calendar days of
the end of the month or, if reporting quarterly,
the quarter in which no Spills occurred.
• Collection System Annual Report (previously
referred to as the Collection System
Questionnaire): The City will update and
certify every 12 months. update their
previous year’s Annual Report, by April 1
for each calendar year (January 1 through
December 31).

Enter data into the CIWQS Online
Spill Database1
(http://ciwqs.waterboards.ca.gov/)
certified by the Legally
Responsible Official(s) 2
.

All information required by
CIWQS will be captured in the
Sanitary Sewer Spill Report.

Certified Spill reports may be
updated by amending the report
or adding an attachment to the
Spill report within 90 calendar
days after the Spill end date.

After 90 days, the State Spill
Program Manager must be
contacted to request to amend a
Spill report along with a
justification for why the additional
information was not available prior
to the end of the 90 days.

WATER

QUALITY

MONITORING
The City will conduct water quality sampling within
18 hours after initial Spill notification for Category 1 Spills in which 50,000 gallons or greater are spilled
to surface waters.

Water quality results will be
uploaded into CIWQS for
Category 1 Spills in which 50,000
gallons or greater are spilled to
surface waters.

KEEPING
The City will maintain the following records:
• Spill event records.
• Records documenting Sanitary Sewer
Management Plan (SSMP) implementation and
changes/updates to the SSMP.
• Records to document Water Quality Monitoring
for Spills of 50,000 gallons or greater spilled to
surface waters.
• Collection system telemetry records if relied upon
to document and/or estimate Spill Volume.

Self-maintained records shall be
available during inspections or
upon request. Records shall be
maintained for a minimum of five
(5) years.
1 In the event that the CIWQS online Spill database is not available, the Water/Wastewater Operations Superintendent will notify SWRCB by phone and will fax or e-mail all required information to the RWQCB office at (510) 622-2460 in accordance with the time schedules identified above. In such an event, the City will submit the appropriate reports using the CIWQS online Spill database when the database becomes available. A copy of all documents that certify the submittal in fulfillment of this section shall be retained in the Spill file. 2 The City always has at least one LRO. Any change in the LRO(s) including deactivation or a change to contact information, will be submitted to the SWRCB within 30 days of the change by calling (866) 792-4977 or emailing [email protected].

For reporting purposes, if one Spill event of whatever category results in multiple appearance points in a sewer system, a single Spill report is required in CIWQS that includes the GPS coordinates for the location of the Spill appearance point closest to the failure point, blockage or location of the flow condition that cause the Spill, and descriptions of the locations of all other discharge points associated with the single Spill event.

11.2 Complaint Records
The City maintains records of all complaints received whether or not they result in sanitary sewer overflows. These complaint records include:
• Date, time, and method of notification
• Date and time the complainant or informant first noticed the Spill or occurrence related to the call • Narrative description describing the complaint
• A statement from the complainant or informant, if they know, of whether or not the potential Spill may have reached waters of the state
• Name, address, and contact telephone number of the complainant or informant reporting the potential Spill (if not reported anonymously)
• Follow-up return contact information for each complaint received (if not reported anonymously) • Final resolution of the complaint with the original complainant • Work service request information used to document all feasible and remedial actions taken All complaint records will be maintained for a minimum of five years whether or not they result in a Spill.

Spill records are maintained in the Collections System office.

12. Post Spill Event Debriefing
Every Spill event is an opportunity to evaluate the City response and reporting procedures. Each overflow event is unique, with its own elements and challenges including volume, cause, location, terrain, climate, and other Item 6.f
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parameters.

As soon as possible after Category 1 and Category 2 Spill events all of the participants, from the person who received the call to the last person to leave the site, will meet to review the procedures used and to discuss what worked and where improvements could be made in preventing or responding to and mitigating future Spill events. The results of the debriefing will be documented and tracked to ensure the action items are completed as scheduled.

13. Failure Analysis Investigation
The objective of the failure analysis investigation is to determine the “cause” of the Spill and to identify corrective action(s) needed that will reduce or eliminate future potential for the Spill to recur or for other Spills to occur.

The investigation will include reviewing all relevant data to determine appropriate corrective action(s) for the line segment. The investigation will include:

Reviewing and completing the Sanitary Sewer Spill Report and any other documents related to the incident • Reviewing the incident timeline and other documentation regarding the incident • Reviewing communications with the reporting party and witness • Reviewing volume estimate, volume recovered estimate, volume estimation assumptions and associated drawings
• Reviewing available photographs
• Interviewing staff that responded to the spill
• Reviewing past maintenance records
• Reviewing past CCTV records,
• Conducting a CCTV inspection to determine the condition of all line segments immediately following the Spill and reviewing the video and logs,
• Reviewing any Fats, Oils, and Grease (FOG) related information or results • Post Spill debrief records
• Interviews with the public at the Spill location
The product of the failure analysis investigation will be the determination of the root cause and the identification and scheduling of the corrective actions. The Collection System Failure Analysis Form (in Sanitary Sewer Spill/Backup Response Workbook) will be used to document the investigation.

14. Spill Response Training
This section provides information on the training that is required to support this Spill Emergency Response Plan.

14.1 Initial and Annual Refresher Training
All City personnel who may have a role in responding to, reporting, and/or mitigating a sewer system overflow will receive training on the contents of this SERP. All new employees will receive training before they are placed in a position where they may have to respond. Current employees will receive annual refresher training on this plan and the procedures to be followed. The City will document all training.

Affected employees will receive annual training on the following topics by knowledgeable trainers:
• The City’s Spill Emergency Response Plan and Sanitary Sewer Management Plan • Sanitary Sewer Spill Volume Estimation Techniques
• Researching and documenting Sanitary Sewer Overflow Start Times • Impacted Surface Waters: Response Procedures
• State Water Resources Control Board Employee Knowledge Expectations • Employee Core Competency Evaluations on Sanitary Sewer Operations Item 6.f
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• Water Quality Sampling Plan
The City will verify that annual safety training requirements are current for each employee, and that employees are competent in the performance of all core competencies. This will be verified through electronic testing, interviews and observations. The City will address, through additional training/instruction, any identified gaps in required core competencies.

Through SWRCB Employee Knowledge Expectations training the employee will be able to answer the following:

1. Please briefly describe your name and job title.

2. Please describe for us approximately when you started in this field and how long you have worked for your agency.

3. Please expand on your current position duties and role in responding in the field to any Spill complaints.

4. Please describe your SOPs used to respond/mitigate Spills when they occur.

5. Describe any training your agency provides or sends you to for conducting spill volume estimates.

6. We are interested in learning more about how your historical Spill response activities have worked in the field. We understand from discussions with management earlier that you use the SERP from the SSMP. Please elaborate on how you implement and utilize the procedures in the plan.

7. Historically, before any recent changes, can you please walk us through how you would typically receive and respond to any Spill complaints in the field?

8. Can you tell us who is responsible for estimating Spill volumes discharged? If it is you, please describe how you go about estimating the Spill volume that you record on the work order/service request forms?

9. What other information do you collect or record other than what is written on the work order form?

10. Describe if and when you ever talk with people that call in Spills (either onsite or via telephone) to further check out when the Spill might have occurred based on what they or others know? If you do this, can you tell us where this information is recorded?

11. We understand you may be instructed to take pictures of some sewer spills/backups into structures. Other than these Spills, when else would you typically take any pictures of a Spill?

12. Please walk us through anything else you’d like to add to help us better understand how your field crews respond and mitigate Spill complaints.

14.2 Spill Response Drills
Periodic training drills or field exercises will be held to ensure that employees are up to date on these procedures, equipment is in working order, and the required materials are readily available. The training drills will cover scenarios typically observed during sewer related emergencies (e.g. mainline blockage, mainline failure, and lateral blockage). The results and the observations during the drills will be recorded and action items will be tracked to ensure completion.

14.3 Spill Training Record Keeping
Records will be kept of all training that is provided in support of this plan. The records for all scheduled training courses and for each spill emergency response training event and will include date, time, place, content, name of trainer(s), and names and titles of attendees.

14.4 Contractors Working On City Sewer Facilities
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All construction contractors working on City sewer facilities will be required to develop a project- specific SERP, will provide project personnel with training regarding the content of the contractor’s SERP and their role in the event of a Spill, and to follow that SERP in the event that they cause or observe a Spill.

Emergency response procedures shall be discussed at project pre-construction meetings, regular project meetings and after any contractor involved incidents.

All service contractors will be provided, and required to observe contractor procedures.

16. Authority
This SERP is written in accordance with the following:
• Current City of Healdsburg Sewer Lateral Ordinance
• Health & Safety Code Sections 5410-5416
• CA Water Code Section 13271
• Fish & Wildlife Code Sections 5650-5656
• State Water Resources Control Board Order No. 2006-0003-DWQ • State Water Resources Control Board Order No. WQ 2013-0058-EXEC effective September 9, 2013

17. Appendices
• Appendix A: Sewer Spill Reference Guide Pamphlet: Your Responsibilities as a Private Property Owner • Appendix B: Door Hanger
• Appendix C: Sanitary Sewer Spill/Backup Response Workbook Item 6.f
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Appendix A:

Sewer Spill Reference Guide Pamphlet: Your Responsibilities as a Private Property Owner Item 6.f
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Item 6.f
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How
a Sewer System Works
A property owner's sewer pipes are called
service laterals and are connected to larger
local main and regional trunk lines.

Service laterals run from the connection at the
home to the connection with the public sewer.

These laterals are the responsibility of the
property owner and must be maintained by the
property owner.

Is my home required to have a
backflow prevention device?
Section 710.1 of the Uniform Plumbing Code
(U.P.C.) states: “Drainage piping serving fixtures
which have flood level rims located below the
elevation of the next upstream manhole cover or
private sewer serving such drainage piping shall
be protected from backflow of sewage by
installing an approved type of backwater valve.”
The intent of Section 710.1 is to protect the
building interior from mainline sewer overflows
or surcharges.

Additionally, U.P.C. 710.6 states: “Backwater
valves shall be located where they will be
accessible for inspection and repair at all times
and, unless continuously exposed, shall be
enclosed in a masonry pit fitted with an
adequately sized removable cover.”
Sewer Spill
Reference Guide
Your Responsibilities as a
Private Property Owner
City of Healdsburg
550 Westside Road
Healdsburg CA 95448
(707) 431-7000
Copyright © 2004-2019
DKF Solutions Group
All rights reserved.

If you have a sewage spill from your private
sewer line that impacts storm drains,
waterways or public property, contact:

City of Healdsburg’s 24-Hour Utility Dispatch
(707) 431-7000 or (855) 755-6586
Discharge of untreated or partially treated
sewage is prohibited by law. If you would like
more information on this prohibition, please
contact any of the following:

Sonoma County Environmental Health
(707) 565-6565
California Health and Safety Code, Sections 5410-5416
requires: • No person shall discharge raw or treated sewage or other waste in a manner that results in
contamination, pollution, or a nuisance.
• Any person who causes or permits a sewage
discharge to any state waters: o Must immediately notify the local health agency of the discharge.
o Shall reimburse the local health agency for services
that protect the public’s health and safety.
o Who fails to provide the required notice to the
local health agency is guilty of a misdemeanor and
shall be punished by a fine (between $500–$1,000)
and/or imprisonment for less than one year.

North Coast Regional Water Quality Control
Board: (707) 576-2220
Requires the prevention, mitigation, response to, and
reporting of sewage spills.

California Governor’sOffice of Emergency
Services (CalOES): (800) 852-7550
California Water Code, Article 4, Chapter 4, Sections
13268-13271 & California Code of Regulations, Title 23, Division 3, Chapter 9.2, Article 2, Sections 2250-2260
require: • Any person who causes or permits sewage in excess of 1,000 gallons to be discharged to state waters shall immediately notify the Office of Emergency Services.
• Any person who fails to provide the notice required
by this section is guilty of a misdemeanor and shall be punished by a fine (less than $20,000) and/or
imprisonment for not more than one year.

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How do sewage spills happen?
Sewage spills occur when the wastewater in underground
pipes overflows through a manhole, cleanout, or broken
pipe. Most spills are relatively small and can be stopped and cleaned up quickly, but left unattended they can cause health hazards, damage to homes and businesses, and
threaten the environment, local waterways, and beaches.

Common causes of sewage spills
• Grease build-up
• Tree roots
• Broken/cracked pipes
• Missing or broken cleanout caps
• Undersized sewers
• Groundwater/rainwater entering the sewer system
through pipe defects and illegal connections
Prevent most sewage backups with a Backflow
Prevention Device
This type of device can help prevent sewage backups into homes and businesses. If you don’t already have a
Backflow Prevention Device, contact a professional
plumber or contractor to install one as soon as possible.

Protect the environment!
If you let sewage from your property discharge to a gutter or storm drain, you may be subject to penalties and/or outof-pocket costs for clean-up and enforcement efforts. A property owner may be charged for costs incurred by
agencies responding to spills from private properties.

What to look for:

Sewage spills can be a very noticeable gushing of water from a manhole or a slow water leak that may take time to be noticed. Don’t dismiss unaccounted-for wet areas. Look for:
• Drain backups inside the building.
• Wet ground and/or water leaking around manhole lids
onto your street.
• Leaking water from cleanouts or outside drains
• Unusual odorous wet areas: sidewalks, external walls, ground/landscape around a building.

The following are indicators of a possible obstruction in your sewer line:
• Water comes up in floor drains, showers or toilets.
• Toilets, showers or floor drains below ground level drain very slowly.

What to do if there is a spill:

Immediately notify the City of Healdsburg. Our crews
locate the blockage and determine if it is in the public sewer; if it is the crew removes the blockage and arranges for cleanup.

If the backup is in your private internal plumbing or in the private service laterals, you are required to immediately:
• Control and minimize the spill by shutting off or not using the water
• Keep sewage out of the storm drain system using
sandbags, dirt and/or plastic sheeting
• Call a plumbing professional to clear blockages and make repairs as needed. Look in the yellow pages under
“Plumbing Drain & Sewer Cleaning” or “Sewer
Contractors.”
• Always notify your sewer/public works department or
public sewer district of sewage spills.

Spill cleanup inside the home:

For large clean ups, a professional cleaning firm should be contacted to clean up impacted areas. If you hire a
contractor, it is recommended to get estimates from more than one company. Sometimes, homeowner’s insurance
will pay for the necessary cleaning due to sewer backups.

Not all policies have this coverage, so check with your agent.

If you decide to clean up a small spill inside your home, protect yourself from contamination by observing the
following safety measures. Those persons whose
resistance to infection is compromised should not attempt this type of clean up.

Other Tips:
• Keep children and pets out of the affected area until cleanup has been completed.
• Turn off heating/air conditioning systems
• Wear rubber boots, rubber gloves, and goggles during
cleanup of the affected area.
• Discard items that cannot be washed and disinfected
(such as: mattresses, rugs, cosmetics, baby toys, etc.) • Remove and discard drywall and insulation that has
been contaminated with sewage or flood waters.
• Thoroughly clean all hard surfaces (such as flooring, concrete, molding, wood and metal furniture,
countertops, appliances, sinks and other plumbing
fixtures) with hot water and laundry or dish detergent. • Help the drying process with fans, air conditioning units, and dehumidifiers.
• After completing cleanup, wash your hands with soap
and water. Use water that has been boiled for 1 minute
(allow the water to cool before washing your hands) OR
use water that has been disinfected (solution of 1/8
teaspoon of household bleach per 1 gallon of water). Let it stand for 30 min. If water is cloudy, use ¼ teaspoon of household bleach per 1 gallon of water.
• Wash clothes worn during cleanup in hot water and
detergent(wash apartfrom uncontaminated clothes).
• Wash clothes contaminated with sewage in hot water
and detergent. Consider using a Laundromat until your
onsite wastewater system has been professionally
inspected and serviced.
• Seek immediate attention if you become injured or ill.

Spill cleanup outside the home:
• Keep children and pets out of the affected area until cleanup has been completed.
• Wear rubber boots, rubber gloves, and goggles during
cleanup of affected area.
• Clean up sewage solids (fecal material) and place in
properly functioning toilet or double bag and place in
garbage container.
• On hard surfaces areas such as asphalt or concrete, it is safe to use a 2% bleach solution, or ½ cup of bleach to 5 gallons of water, but don’t allow it to reach a storm drain as the bleach can harm the environment.
• After cleanup, wash hands with soap and water. Use
water that has been boiled for 1 minute (allow to cool
before washing your hands) OR use water that has been
disinfected (solution of 1/8 teaspoon of household
bleach per 1 gallon of water). Let it stand for 30 min. If water is cloudy, use ¼ teaspoon of household bleach per 1 gallon of water.
• Wash clothes worn during cleanup in hot water and
detergent(wash apartfrom uncontaminated clothes).
• Wash clothes contaminated with sewage in hot water
and detergent. Consider using a Laundromat until your
onsite wastewater system has been professionally
inspected and serviced.
• Seek immediate attention if you become injured/ill.

CAUTION!
When trying to locate a sewer problem,
never open manholes or other public
sewer structures. Only our crews are
allowed to open & inspectthese structures.

Call for assistance: (707) 431-7000
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Appendix B:

Door Hanger
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City of Healdsburg City of Healdsburg
On (date) , at (location) On (date) , at (location)
, ,
we responded to a reported blockage of the
sanitary sewer service to your property.

We discovered a blockage in:
 The sanitary sewer main and cleared the line
 Your sanitary sewer lateral, which is your
responsibility to maintain.

If you require assistance to clear your portion of
the lateral you can search for “Sewer Contractors”
or “Plumbing Drains & Sewer Cleaning”. If you
plan to hire a contractor, we recommend getting
estimates from more than one company.

City representative notes:
we responded to a reported blockage of the
sanitary sewer service to your property.

We discovered a blockage in:
 The sanitary sewer main and cleared the line
 Your sanitary sewer lateral, which is your
responsibility to maintain.

City representative notes:

City representative: City representative:

For questions or comments, please call
City of Healdsburg
(707) 431-7000
For questions or comments, please call
City of Healdsburg
(707) 431-7000
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Appendix C:

Sanitary Sewer Spill/Backup Response Workbook
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© 2004-2019 DKF Solutions Group, LLC. All rights reserved. 2023 City of Healdsburg Edits
City of Healdsburg Spill Emergency Response Plan
 If this is a Category 1 Spill greater than or equal to 1,000 gallons, immediately contact CALOES at (800) 852-7550 within 2 hours.
 Referto the Regulatory Reporting Guide for additionalreporting requirements.  If there is a backup into a residence or business contact Amy Northam at CIRA:

Amy Northam, [email protected]
 For Restoration/Remediation contact one of the following if instructed to do so by George Hills Co./CIRA:
• Sierra Pacific Loss Management:
o Main Line - (800) 413-2999/707.252.5525
o Doug Thompson – 707.592.9918
o [email protected]
• PLEASE NOTE: THAT SIERRA PACIFIC LOSS MANAGEMENT WILL HANDLE MOST, IF NOT ALL, OF THE CLAIM IF CONTACTED IMMEDIATELY.

If attempts to contact Sierra Pacific are unsuccessful, please contact George Hills staff directly. They have emergency 24/7 numbers and will answer and respond.
• George Hills Staff:
o Dana Calkins: (916) 333-0575
o Parmit Randhawa: (510) 375-1141
o Craig Nunn: (916) 378-5772 (Arcata, Eureka, Fortuna & Ft. Bragg) o Edie Yamamura: (707) 602-3149
 For Documentation/Reporting: Water/Wastewater Operations Superintendent or designee (707) 431-3369
 To have watersamples analyzed:

Water Reclamation Facility Laboratory, 340 Foreman Lane, Healdsburg Don’tforgetto
take photos!
 For any media inquiries/requests: Public Information Officer (707) 431-3317 Sanitary Sewer Spill/Backup Response Workbook
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Public Works Crew and Utilities Crew:
 Follow the instructions on the Spill/Backup Response
Flowchart and complete forms in this workbook as indicated.

Note: refer to the color code key on the first page of the flowchart to determine the actions to be taken by each crew.  Complete the chain of custody record (to the right) and deliver this workbook to the Water/Wastewater Operations
Superintendent.

Print Name:

Initial:

Date:

Time:

Water/Wastewater Operations Superintendent or designee:
 Review the Spill Event Checklist and the forms in this booklet. Contact the Public Works Crew and/or Utilities Crew for additional information if necessary.
 If there is a backup into a home or business, send
documentation to City Clerk
 Complete the Collection System Failure Analysis Form.  Enter data into CIWQS.
 Complete the Chain of Custody record (right) and file this booklet
Print Name:

Initial:

Date:

Time:

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© 2004-2019 DKF Solutions Group, LLC. All rights reserved. 2023 City of Healdsburg Edits
City of Healdsburg Spill Emergency Response Plan
Spill Event Checklist
Date of Spill: Spill Location/Name:

CIWQS Event ID #: Category?  1  2  3  4 OES#:_______ Property Damage?  Yes  No Service Request #:
 Effort made to contain and return a portion/all to
the sanitary sewer
 Pictures/video taken of overflow
 Pictures taken of affected/unaffected area
 If property damage, start that process
 Pictures taken of containment efforts
 If Cat 1 > 1000 gals:

OES Control #
 Impacted waters identified?
 No impacted waters?
 Spill Report Form Complete (includes fields for
all required fields in CIWQS, and a sketch of
Spill)
 Volume Estimation Worksheet(s) done
 Start Time Determination Form done
 Initial review of forms is complete (ensure
consistency with dates, times, volumes, and
other data)
 Review of photos and videos (label/date)
 Start Folder for all documentation for this Spill
event. Put everything in it (SR, Field Reports,
Worksheets/Forms, follow-up work orders, notes,
pics, drawings, etc. CIWQS print outs and
emails)
 Failure Analysis
o TV to determine cause
o Review Asset History
 Determine next steps to prevent recurrence
 Document findings and next steps on Spill
Report
 Submit Draft in CIWQS w/in 3 business days (for
Categories 1 and 2 only)
 Print CIWQS Draft hard copy and email
 Review CIWQS, Spill Report, Worksheets, CMMS,
and any other documentation to ensure data is
consistent (e.g. dates, times, volumes, cause,
follow-up action, etc.
 Attach photos, forms etc. to CIWQS
 Submit Ready to Certify in CIWQS (with sufficient
time for LRO review)
 Print CIWQS Ready to Certify and email
 Hand folder to LRO
 LRO review folder and CIWQS verify accurate and
consistent data
 Certify in CIWQS (within 15 calendar days for
Categories 1 & 2, 30 days after the month for
Category 3)
 Print Certified CIWQS and email
 Any changes? Change in CIWQS and hard copies
and explain changes, print our current version
 Move completed folder to Spill Binder
 For 50, 000 gallons or larger
□ Follow Water Quality Monitoring and
Sampling procedures
□ Map of where samples were taken
□ Sampling results
□ Write Technical Report
□ Attach to CIWQS
□ Add to Spill Folder/Binder
□ If any changes are made to SSMP
□ Update SSMP and link on CIWQS to SSMP
□ Add change to SSMP Change Log
□ If change is substantive, re-certify SSMP
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INSERT TAB:

Regulatory Reporting
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© 2004-2019 DKF Solutions Group, LLC. All rights reserved. 2023 City of Healdsburg Edits
Regulatory Reporting Guide A-1
Deadline Category 1
Spill
Category 2
Spill
Category 3
Spill
Category 4
Spill
2 hours after
awareness of
Spill
• If the spill is
greater than or
equal to 1,000
gallons, call
CalOES.
• Notify
downstream
agencies as
appropriate:
o Town of
Windsor
o Sonoma Water
- -
As soon as possible If Spill impacts private property that may be a failure of the sewer main and/or if a claim for damages may be submitted against the City, notify the Claims Office. 18 Hours after
awareness of Spill If 50,000 gal or
more were not
recovered,
begin water
quality
sampling.
- -
3 Business Days
after awareness of
Spill
Submit Draft Spill
Report in the CIWQS
database.

Submit Draft Spill
Report in the CIWQS
database.
-
15 Days after
response
conclusion
Certify Spill Report in
CIWQS database..

Certify Spill Report in
the CIWQS database.
-
30 Days after
end of calendar
month in which
Spill occurred
- -
Certify Spill Report in
CIWQS..

Certify Spill Report in
CIWQS
45 days after Spill
end date If 50,000 gal or more
were not recovered,
submit Spill Technical
Report in CIWQS.
- -
90 Days after
response conclusion Submit amended Spill
Report I CIWQS
Submit amended Spill
Report
Submit amended Spill
Report in CIWQS
Upload and certify a
report, in an
acceptable digital
format, of all
Category 4 spills to
the online CIWQS
Sanitary Sewer
System Database, by
February 1st after
the end of the
calendar year in
which the spills
occur.

Note: For reporting purposes, if one Spill event results in multiple appearance points, complete one Spill report in the CIWQS Spill Item 6.f
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Online Database, and report the location of the Spill failure point, blockage or location of the flow condition that caused the Spill, including all the discharge points associated with the Spill event.

Category Definition
1 Discharges of untreated or partially treated wastewater of any volume resulting from an enrollee’s sanitary sewer system failure or flow condition that:
• Reach surface water and/or reach a drainage channel (with or without water in it) tributary to a surface water; or
• Reach a Municipal Separate Storm Sewer System (MS4) and are not fully captured and returned to the sanitary sewer system or not otherwise captured and disposed of properly. Any volume of wastewater not recovered from the MS4 is considered to have reached surface water unless the storm drain system discharges to a dedicated storm water or groundwater infiltration basin (e.g., infiltration pit, percolation pond).
2 Discharges of untreated or partially treated wastewater of 1,000 gallons or greater resulting from an enrollee’s sanitary sewer system failure or flow condition that do not reach surface water, a drainage channel, or a MS4 unless the entire Spill discharged to the storm drain system is fully recovered and disposed of properly. 3 Discharges of untreated or partially treated wastewater of 50 to less than 1,000 gallons resulting from an enrollee’s sanitary sewer system failure or flow condition that do not reach surface water, a drainage channel, or a MS4 unless the entire Spill discharged to the storm drain system is fully recovered and disposed of properly.
4 Discharges of untreated or partially treated wastewater of less than 50 gallons resulting from an enrollee’s sanitary sewer system failure or flow condition that do not reach surface water, a drainage channel, or a MS4 unless the entire Spill discharged to the storm drain system is fully recovered and disposed of properly.

Private
Lateral
Sewage
Discharge
(PLSD)
Discharges of untreated or partially treated wastewater resulting from blockages or other problems within a privately-owned sewer lateral connected to the enrollee’s sanitary sewer system or from other private sewer assets. PLSDs that the enrollee becomes aware of may be voluntarily reported to the California Integrated Water Quality System (CIWQS) Online Spill Database.

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City of Healdsburg Spill Emergency Response Plan
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Regulatory Reporting Contacts and Authorization A-2
Authorized Personnel:

The following are authorized to perform regulatory reporting of Spills:
• Public Works Crew
• Utilities Crew
The City’s Legally Responsible Officials (LROs) are authorized to electronically sign and certify Spill reports in CIWQS. The LROs are:

Title Contact
Water/Wastewater Operations Superintendent (707) 431-3369 Wastewater Operations Foreman (707) 431-3346
Utility Director (707) 431-3340
Reporting Contacts:

Contact Telephone/Email
CAL OES (800) 852-7550
City Clerk (707) 431-3317
North Coast Regional Water Quality Control Board (707) 576-2220 Town of Windsor, Water Operations (707) 838-5309
Sonoma Water, Operations Hotline (707) 523-1070
State Water Resources Control Board Armando Martinez 916) 341-5586 [email protected]
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Regulatory Reporting Checklist A-3

NOTIFICATIONS
CAL OES (800) 852-7550
Notification Date/Time:

Name of Who You Spoke To:

OES Control Number:

Town of Windsor (707) 838-5309
Notification Date/Time:

Name of Who You Spoke To:

Left Message: 
Sonoma Water (707) 523-1070
Notification Date/Time:

Name of Who You Spoke To:

Left Message: 
City Clerk (707) 431-3317
Notification Date/Time:

Name of Who You Spoke To:

Flowchart
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City of Healdsburg Spill Emergency Response Plan
Spill/Backup Response Flowchart B-1: Page 1
© 2004-2019 DKF Solutions Group All rights reserved.
2023 City of Healdsburg Edits
Color Code
Key
Utilities
Crew
Public
Works Crew
Start Here
Does the
Spill/backup appear
to be due to a problem
in the Cityowned/maintained
sewer line?
NO
YES
Document the service call according to City procedures.

STOP. Do not continue to PAGE 2
This is a Private Lateral Sewage Discharge (PLSD)
Notify the property owner that the blockage is in their lateral and that the City does not have legal authority to maintain or perform work on privately-owned laterals.

Give customer the “Your Responsibilities as a Private Property Owner” pages.

Recommend to customer they hire a contractor to clear their line.

If customer is not home:

Complete Door Hanger and leave on customer’s door.

Leave a message on the customer’s voicemail.

If the property owner is unable or unwilling to address the cause of the overflow, immediately contact your supervisor and discuss whether Code Enforcement, the County Department of
Environmental Health or Regional Water Quality Control Board should be notified.

If you are directed to break the stoppage and clean up the PLSD, Be sure to document City staff time and equipment used for potential billing purposes, and take pictures.

BEGIN DIVERSION AND CONTAINMENT, AS NECESSARY
DIVERT AWAY FROM SENSITIVE AREAS:

Cover unplugged storm drains w/mats, or use dirt/other material to divert sewage away from sensitive areas (e.g., schools, playgrounds, intersections, etc.) ENSURE PUBLIC CONTACT DOES NOT OCCUR. Use cones/barricades to isolate area.

CONTAIN Spill & RETURN TO SYSTEM, IF POSSIBLE:

Plug storm drain catch basins or use rubber mats to cover basin inlet and divert flow to catch basin
Build/excavate a berm to channel flow to downstream sanitary sewer manhole (barricade manhole if left open)
Use bypass pumps to pump around blockage until it can be removed Divert to low area of ground where it can be collected later PHOTOGRAPH HOW THE Spill WAS DIVERTED/CONTAINED, AS APPROPRIATE Contact Utilities Crew for reporting assistance.

Document arrival time.

Consider the need to call out additional staff,
contractor or mutual aid assistance.

If it is possible that this is a Category 1 Spill
greater than or equal to 1,000 gallons,
immediately make the 2-hour notification to
CalOES.

Go to
PAGE 2
ADDRESS CAUSE OF Spill/BACKUP ASAP
For pump station related Spill/Backups refer to that station’s Emergency Response Plan.

For Spill/Backups not related to a pump station, relieve the stoppage. Note the distance from the manhole and catch/remove debris that could cause another stoppage. After flow has returned to normal, clean the pipe thoroughly.

Photograph staff activities while clearing the blockage, as appropriate.

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Spill/Backup Response Flowchart B-1: Page 2
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Go to
PAGE 3
Continue from
PAGE 1
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Spill/Backup Response Flowchart B-1: Page 3
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Color Code Key
Did this
Spill cause a NO
sewer backup impacting
private property?
YES

DOCUMENTATION AND VOLUME ESTIMATION

1. Complete the Spill Report

2. In the Start Time Determination section for the Spill Report remember that the Spill was probably occurring for a period of time before it was reported.

3. Estimate and document Spill volume using two or more of the worksheets provided in the Spill/Backup Response Workbook.

REGULATORY REPORTING:

Make notifications indicated in the Regulatory Guide.

1. Follow the routing instructions indicated on the front of this workbook.

2. Include any photos and/or notes related to this event.

Does the
customer want
cleaning service?
YES

3. Document the service call according to City procedures NO

1. If the Livability Assessment on the First Responder form indicates a need for temporary relocation George Hills Co./CIRA and/or the restoration/remediation firm will make the arrangements.

2. If the resident declines to temporarily relocate, note that on the First Responder Form.

3. Give the Information for the Customer letter to the customer.

Photograph the
backwater prevention
device or cleanout if
you can locate one on
the affected building

1. Complete the First Responder Form.

2. Contact George Hills Co./CIRA
• Dana Calkins: (916) 333-0575
• Parmit Randhawa: (510) 375-1141
Craig Nunn: (916) 378-5772 (Arcata,
Eureka, Fortuna & Ft. Bragg)
• Edie Yamamura: (707) 602-3149
Continue from
PAGE 2 Public
Works Crew
Utilities
Crew

1. Complete the Cleaning Declination form.

2. Ask for permission to photograph the affected area,
or ask the customer to take photos. If they decline,
note on the First Responder form.

3. Take a photo of the form to document what was given
to the customer.

4. Give the form to the Customer.

1. George Hills Co./CIRA will contact a
restoration/remediation firm. If you are instructed to
do so, contact one of the firms on the front cover of
this workbook.

2. Wait for restoration team to arrive, if possible.

3. Clean/disinfect any overflow outside of the building.

Note: DO NOT allow any disinfectants to escape to
storm drains.

Spill Report
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City of Healdsburg Spill Emergency Response Plan
Sanitary Sewer Spill Field Report C-1: Page 1
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PHYSICAL LOCATION DETAILS
Spill location name
Latitude of spill location
Longitude of spill location
County
Regional Water Quality Control Board
VOLUMES BY DESTINATION Volume Spilled
(Gallons)
Volume
Recovered
(Gallons)

2.a/2.b Estimated spill volume that reached a
separate storm drain that flows to a surface body of
water? (If not all recovered, this is a Category 1)

2.c/2d Estimated spill volume that directly reached
a drainage channel that flows to a surface water
body?
(Any volume spilled is a Category 1)

2.e/2.f Estimated spill volume discharged directly to
a surface water body? (Any volume spilled is a
Category 1)

2.g/2.h Estimated spill volume discharged to land?
(Includes discharges directly to land, and
discharges to a storm drain system or drainage
channel that flows to a storm water
infiltration/retention structure, field, or other nonsurface water location. Also, includes backups to building structures).

Volume Spilled Volume
Recovered
Total Volume Spilled
(Verify this matches the table in between

2.h and 3 in CIWQS)
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Sanitary Sewer Spill Field Report C-1: Page 2
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DATE/TIME DETERMINATIONS

DATE TIME
Start of Spill (Use Start Time Determination/Notes
Below)
Agency Notified
Collection System Operator Dispatched
Collection System Operator Arrived
End of Spill
End of Spill Response
Start Time Determination/Notes
Caller Interview: Where did you see sewage spill from?
Don’tforgetto
take photos!
 Manhole  Inside Building  Vent/Clean Out  Catch Basin  Wet Well/Lift Station  Other:

Comments:

Last Time Caller Observed NO Spill occurring: AM / PM Date / / Comments:

If the volume of the Spill and rate of flow are known, divide volume by rate of flow to get duration of Spill event.

Gallons ÷ GPM = Minutes (Spill Duration).

Subtract the Duration from the Spill End Date/Time to establish the Spill Start Date/Time.

Other Efforts to Determine Start Time:

Other Comments Regarding Spill Start Time:

Estimated Spill Start Time: AM / PM Date: / /
Spill End Time: AM / PM Date: / /
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Sanitary Sewer Spill Field Report C-1: Page 3
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Spill FIELD REPORT
Spill location description:

Number of appearance points:

Spill appearance points: (Circle all that apply) Backflow Prevention Device Force Main Gravity Mainline Inside Building/Structure Lateral Clean Out (Private / Public) Lower Lateral (Private / Public) Manhole Pump Station Upper Lateral (Private / Public) Other Sewer System Structure
Spill appearance point explanation. (Enter information here if “Other” or multiple appearance points were selected):

Final spill destination: (Circle all that apply) Final spill destination. (Circle all that apply).

Beach Building/Structure Combined Storm Drain Drainage Channel Other (Specify Below) Paved Surface Separate Storm Drain Street/Curb and Gutter Surface Water Unpaved Surface
Explanation of final spill destination. (Enter information if “Other” was selected.

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Sanitary Sewer Spill Field Report C-1: Page 4
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Spill FIELD REPORT
Spill cause: (Circle One)
Air Relief Valve (ARV)/Blow Off Valve (BOV) Failure
Construction Diversion Failure
CS Maintenance Caused Spill/Damage
Damage by Others Not Related to CS Construction/Maintenance (Specify Below) Debris from Construction
Debris from Lateral
Debris-General
Debris-Rags
Debris Wipes/Non-Dispersible
Flow Exceeded Capacity (Separate CS Only)
Grease Deposition (FOG)
Inappropriate Discharge to CS
Natural Disaster
Operator Error
Other (Specify Below)
Pipe Structural Problem/Failure
Pipe Structural Problem/Failure – Installation
Pump Station Failure – Controls
Pump Station Failure – Mechanical
Pump Station Failure – Power
Rainfall Exceeded Design, I and I (Separate CS Only)
Root Intrusion
Siphon Failure
Surcharged Pipe (Combined CS Only)
Vandalism
Spill cause explanation: (Required if Spill Cause is “Other”) Item 6.f
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Spill FIELD REPORT
Where did failure occur?
Air Relief Valve (ARV)/Blow Off Valve (BOV) Failure Force Main Gravity Mainline Lower Lateral (Public) Manhole Other (Specify Below) Pump Station Failure – Controls Pump Station Failure – Mechanical Pump Station Failure – Power Siphon Upper Lateral (Public)
Explanation of where failure occurred: (Required if Where Failure Occurred is “Other”) Was spill associated with a storm event? YES NO
Diameter of sewer pipe at the point of blockage or failure: inches Material of sewer pipe at the point of blockage or failure:

Estimated age of sewer asset at the point of blockage or failure (if applicable): years
Spill Response Activities. (Circle all that apply) Cleaned-Up Mitigated Effects of Spill Contained All or Portion of Spill Other (Specify Below) Restored Flow Returned All Spoil to Sanitary Sewer System Property Owner Notified Other Enforcement Agency Notified
Explanation of spill response activities: (Required if spill response activities is “Other”):

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City of Healdsburg Spill Emergency Response Plan
Sanitary Sewer Spill Field Report C-1: Page 6
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Spill FIELD REPORT
Spill corrective action taken: (Circle all that apply)
Added Sewer to Preventive Maintenance Program
Adjusted Schedule/Method of Preventive Maintenance
Enforcement Action Against FOG Source
Inspected Sewer Using CCTV to Determine Cause
Other (Specify Below)
Plan Rehabilitation or Replacement of Sewer
Repaired Facilities or Replaced Defect
Explanation of corrective action taken: (Required if spill corrective action is “Other”) Is there an ongoing investigation? YES NO
Health warnings posted? YES NO
Did spill result in beach closure? YES NO
Name of Impacted Beach(es): (Enter N/A if none)
Name of impacted surface waters:

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Sanitary Sewer Spill Field Report C-1: Page 7
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Spill FIELD REPORT
Water quality samples analyzed for: (Circle all that apply) Biological Indicator(s) – Specify Below
Other Chemical Indicators(s) – Specify Below
No Water Quality Samples Taken
Not Applicable to the Spill
Other (Specify Below)
Explanation of water quality samples analyzed for: (Required if water quality samples analyzed for is "Other chemical indicator(s)", "Biological indicator(s)", or "Other") Water quality sample results reported to: (Circle all that apply) County Health Agency Regional Water Quality Control Board Other (Specify below) No Water Quality Samples Taken Not Applicable to this Spill Explanation of water quality sample results reported to: (Required if water quality sample results reported to is “Other”)
Method and explanation of volume estimation methods used: (Circle all that apply) Eyeball Estimate Measured Volume Duration and Flow Rate Other (Explain):

Volume Estimation
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City of Healdsburg Spill Emergency Response Plan
Volume Estimation Computations & Examples D-1: Page 1
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Miscellaneous Computations & Examples
To convert inches to feet Divide the inches by 12 or use the chart on the right.

Example 1: 27" ÷ 12 = 2.25'
Example 2: 1¾" = ?'
1" (0.08') + ¾" (0.06') = 0.14'
(NOTE: for the purposes
of this worksheet, the
unit of measurement will
be in feet for formula
examples)
Volume of one cubic foot 7.48 gallons of liquid
Area: Square/rectangle: Area = Length x Width
Circle: Area = π x r2
(where π ≈ 3.14 and r = radius = ½ diameter)
Triangle: Area = ½ (Base x Height)
Two-dimensional
measurement
represented in square
feet (SQ/FT or ft2)
Volume: Rectangle/square footprint:Volume = Length x Width x Depth Circle footprint (cylinder): Volume = π x r2 x Depth
(where π ≈ 3.14 and r = radius = ½ diameter)
Triangle footprint: Volume = ½ (Base x Height) x Depth
Three-dimensional
measurement
represented in cubic feet
(CU/FT or ft3)
Depth:

Wet Stain on Concrete or
asphalt surface
If the depth is not measurable because it is only a wet stain, use the following estimated depths: Depth of a wet stain on concrete surface: 0.0026' (1/32") Depth of a wet stain on asphalt surface: 0.0013' (1/64") These were determined to be a reasonable depth to use on the respective surfaces through a process of trial and error. One gallon of water was poured onto both asphalt and concrete surfaces. Once the area was determined as accurately as possible, different depths were used to determine the volume of the wetted footprint until the formula produced a result that (closely) matched the one gallon spilled. This process was repeated several times.

Depth:

Contained or “Ponded”
sewage
Measure actual depth of standing sewage whenever
possible. When depth varies, measure several representative sample points and determine the average. Use that number in your formula to determine volume.

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Volume Estimation Computations & Examples D-1: Page 2
Miscellaneous Computations & Examples (continued)
Area/Volume of a Rectangle or Square
Formula: Length x Width x Depth = Volume in cubic feet
25' X 12' X 0.14' = 42 Cubic Feet
Length Width Depth Volume
Multiply the volume by 7.48 gallons to determine the volume in gallons:
42 ft3. X 7.48 = 314.16 gallons
Volume gal/ft3 Volume
Area/Volume of a Right Triangle
Formula: Base x Height x Depth = Volume in cubic feet
45' X 10' X 0.5 X 0.05' x 7.48 = 84.15 gallons
Base Height Depth gal/ft3 Volume
Area/Volume of a Circle
Formula: π x r2 x 0.785 x Depth = Volume in cubic feet
The diameter is a straight line passing from side to side through the center of a circle.

13.5' X 13.5' X 3.14 X 0.03' x 7.48 = 128.42 gallons
Radius Radius π Depth gal/ft3 Volume
For isosceles triangles
(two sides are equal lengths),
break it down into two right triangles
and compute area as you would for
the right triangle.
12'
Depth = 1 ¾"
25'
10'
Depth = 5/8"
45'
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Volume Estimation: Eyeball Estimation Method (for ≤100 gallons) D-2 STEP 1: Position yourself so that you have a vantage point where you can see the entire Spill.

STEP 2: Imagine one or more buckets or barrels of water tipped over. Depending on the size of the Spill, select a bucket or barrel size as a frame of reference. It may be necessary to use more than one bucket/barrel size.

STEP 3: Estimate how many of each size bucket or barrel it would take to make an equivalent spill. Enter those numbers in Column A of the row in the table below that corresponds to the bucket/barrel sizes you are using as a frame of reference.

STEP 4: Multiply the number in Column A by the multiplier in Column B. Enter the result in Column C.

A B C
Size of bucket(s) or
barrel(s)
How many
of this size? Multiplier Estimated SpillVolume (gallons) 1 gallon water jug x 1 gallons
5 gallon bucket x 5 gallons
32 gallon trash can x 32 gallons
55 gallon drum x 55 gallons
Other: gallons x gallons
Estimated Total Spill Volume:

STEP 5: Is rainfall a factor in the Spill? ☐Yes ☐No
If yes, what volume of the observed spill volume do you estimate is rainfall? gallons If yes, describe how you determined the amount of rainfall in the observed spill? STEP 6: Calculate the estimated Spill volume by subtracting the rainfall from the Spill volume:
gallons − gallons = gallons
Estimated Spill Volume Rainfall Total Estimated Spill Volume Item 6.f
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Volume Estimation: Duration and Flow Rate Comparison Method D-3 Compare the Spill to reference images below to estimate flow rate of the current overflow. NOTE: If the manhole cover in your picture has vent holes or more than one pry hole, do not use these pictures for comparison.

Describe which reference photo(s) were used and any additional factors that influenced applying the reference photo data to the actual Spill:
5 gpm 25 gpm 50 gpm 100 gpm
Near View
Far View
150 gpm 200 gpm 300 gpm 400 gpm
Near View
Far View
SSCSC Manhole Overflow Gauge: CWEA Southern Section Collections Systems Committee Overflow Simulation courtesy of Eastern Municipal Water District Flow Rate Based on Photo Comparison: gallons per minute (gpm) Start Date and Time 1.

End Date and Time 2.

Spill Event Total Time Elapsed
(subtract Line 1 from Line 2. Show in minutes.)

3. Average Flow Rate GPM
(Account for diurnal flow pattern)

4. Total Volume Estimated Using Duration
and Flow Method (Line 3 x Line 4)

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Volume Estimation: Area/Volume Method D-4: Page 1
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Spill Date: Location:

STEP 1: Describe spill area surface:  Asphalt  Concrete  Dirt  Landscape  Inside Building
 Other:

STEP 2: Draw/sketch the outline (footprint) of the spill. Then break the footprint down into recognizable shapes. See example below.

Sketch the outline of the spill (black line)
Break the sketch down into recognizable shapes (circles, squares, etc.) as well as you can.

Determine the volume of each shape. (note: in this example, after the volume of the circle is determined, multiply it by approximately 65% so that the overlap area won’t be counted twice.

If the spill is of varying depths, take several measurements at different depths and find the average. If the spill affects a dry unimproved area such as a field or dirt parking lot, determine the area of the wetted ground in the same manner as you would on a hard surface. Using a round-point shovel, dig down into the soil until you find dry soil. Do this in several locations within the wetted area and measure the depth of the wet soil. Average the measurement/thickness of the wet soil and determine the average depth of the wet soil. 2"

1.5"

1.25"
3"
5"

1.25"
Example (right): 2" + 1.5" + 1.25" + 3" + 5" + 1.25" = 14.0”

14.0" ÷ 6 measurements = 2.33"
Average Depth = 2.33" (0.194’)
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Volume Estimation: Area/Volume Method D-4: Page 2
STEP 3: Calculate the area of the footprint by completing the table below for each shape in Step 2.

If two shapes overlap, select one of the two shapes and estimate the percentage of that shape that does not overlap. Enter that percentage in the % Not Overlapping column. This will ensure that the overlap area is only counted once. Refer to the example on the previous page.

Rectangles Length X Width X % Not Overlapping* = Area
ft X ft X % = ft2
ft X ft X % = ft2
ft X ft X % = ft2
Triangles Base X Height Multiplier X % Not Overlapping* = Area ft X ft ÷ 2 X % = ft2
ft X ft ÷ 2 X % = ft2
ft X ft ÷ 2 X % = ft2
Circles π X Radius X Radius X % Not Overlapping* = Area

3.14 X ft X ft X % = ft2

3.14 X ft X ft X % = ft2
Total Spill Area (sum of all three tables above): ft2
STEP 4: Measure the depth of the spill.

If spill is of varying depths, take several measurements at different depths and find the average. inches ÷ = inches ÷ 12 = feet
sum of measurements # of measurements average depth in inches average depth in feet of ponded sewage
STEP 5: Calculate spill volume of ponded sewage in cubic feet by multiplying the Total Spill Area in Step 3 by the average depth calculated in Step 4.

Convert from cubic feet to gallons by multiplying by 7.48. ft2 x ft = ft3 x 7.48 gal = gallons
spill area (Step 3) average depth (Step 4) spill volume in feet Total estimated volume Item 6.f
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Drawing Worksheet D-5
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INSERT TAB:

Backup Forms
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City of Healdsburg Spill Emergency Response Plan
Backup Forms Checklist (Backup Only) E-1
Complete this form only if there is a backup into a residence or business.

Instructions:

1. Follow instructions on the Spill/Backup Response Flowchart.

2. Refer to CIRA Instructions for Handling General Liability Claims as necessary.

3. Complete forms as indicated.

4. For customer forms, tear form out of this workbook and hand to customer. Take photo of each form before giving it to the customer for documentation. Do not give the customer the First Responder Form.

5. Check each item that was provided to the customer.

6. Have customer sign below.

Forms/Documents:
 Form E-4: Declination of Cleaning Services
 Form E-5: Customer Information Letter
 Form E-6: Your Responsibilities as a Private Property Owner Forms Provided to:

Customer Name
Customer Signature
Date
Check here if customer declines to sign: 
Forms Provided by:

Employee Name Initial
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Page 6 of 4 ends

Healdsburg City CouncilOctober 6, 2025

Healdsburg City Council
October 6, 2025