City of Pacifica – Wastewater Rate Study Page 1
DATE: January 26th, 2022
TO: Lisa Petersen, Director of Public Works
FROM: Douglas Dove, President
Michael DeGroot, Financial Analyst
SUBJECT: Wastewater Rate Study
MEMORANDUM
Introduction
Bartle Wells Associates (BWA) has been retained by the City of Pacifica to evaluate the City’s current wastewater rates and make recommendations on rate increases. At a public hearing, on May 8, 2017, the City adopted 5 years of rate increases from FY 2017/18 through 2021/22. The City now wants to update its wastewater rates for the next five years to reflect current costs of service.
Current Wastewater Rates
Pacifica’s adopted wastewater rates are listed in Table 1. Rates have been implemented as adopted and the final increase was implemented July 1st, 2021.
BWA recommends continuing the current billing practices. Generally, the water consumption estimate for a user is the user’s total water consumption for the six (6) bi-monthly water billing periods ending with the billing period for February of the calendar year during which the charges will be levied. This twelve (12) month period is known as the “billing year.” The method for estimating water consumption for single-family and multi-family residences is to multiply total water consumption during the billing year by 90% (0.90). 10% of usage is estimated to be used for irrigation based on an analysis of billing data and BWA’s experience with coastal community’s water usage.
The City’s minimum charge is based on 48 units and is applied to the lowest user through the median user, who consumes 48 units per year. The minimum charge is designed to recover a minimum of 60% of projected sewer revenues before factoring in usage. The minimum charge reflects the cost profile of the sewer enterprise, which is heavily fixed regardless of wastewater flows.
Any nonresidential user with substantial irrigation requirements may be able to apply to have his or her flow estimate recalculated based on criterion in City Municipal Code Section 6-6.407. 2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
ATTACHMENT 7
City of Pacifica – Wastewater Rate Study Page 2
Applications submitted will be subject to the procedures and requirements set forth in the City’s Municipal Code. If a user has more than one water meter at a service location, and one or more of those meters measures only water used for landscaping purposes, the meter usage for landscaping purposes will be excluded.
Schools with mixed water use (drinking water and irrigation) may apply to have their flow estimate calculated as six (6) times the average consumption of the following bimonthly periods: (i) March and April, (ii) May and June, (iii) ½ billed during November and December, and (iv) January and February.
Operations and Maintenance Expenses
Table 2 shows the projected operations and maintenance expenses for the City’s WWTP and collection system. BWA projects that operations and maintenance expenses will increase 3% per year from the City’s FY 2022/23 budget.
Outstanding Debt Service
The City had four outstanding debt obligations as of January 1st, 2021, as shown in Table 3.
Importantly, one of the debt issuances was recently paid off, and one of the City’s debts will be paid off within the rate study projection period: the 1997 State of California Water Resource Control Board Loan final payment was July 2021, and the 2014 Wastewater Revenue Refunding Bonds final payment is in 2026. The payoff of these loans will free up $1.8 MM to $2 MM of cash flow for future debt service or to cash fund capital projects.
Loan Balances as of January 1st, 2021:
• 1997 State of California Water Resource Control Board Loan: $2.1 MM principal outstanding (paid off July 1st, 2021)
• 2012 Loan and Installment Agreement: $4.3MM principal outstanding • 2014 Wastewater Revenue Refunding Bonds: $6.7 MM principal outstanding • 2017 Wastewater Revenue Bond: $22.1 MM principal outstanding Capital Improvement Program
The City’s wastewater capital program is shown in Table 4. Total planned capital projects in the rate period amount to $125 MM, with $47.2 MM in collection system capital, $37.8 MM in WWTP capital projects, and $40 MM for the Beach Blvd Infrastructure Resiliency Project. The capital program averages $11.4 MM per year with the largest annual capital expenditure at $20.9 MM in FY 2026/27.
Financial Projections
Table 5 shows the wastewater cashflow projection from FY 2021/22 to FY 2031/32. BWA projects that rate increases of 3.5% per year are required each year for the next 5 years (FY City of Pacifica – Wastewater Rate Study Page 3
2022/23 to FY 2026/27) to meet the City’s wastewater expenses. Projections include 0.5% growth estimated based on projected development.
BWA projects a loan of $31.6 MM is required in FY 2022/23 to fund the capital program. An additional $52.4 MM is estimated to be required in FY 2026/27 for three years of capital, primarily to fund the Beach Boulevard Infrastructure Resiliency Project & Other Coastal Projects (total est. project cost is $40 MM over four years, beginning in FY 2026/27.) For projection purposes, the loan terms are estimated at 4% interest, over 30 years, with 1.5% issuance fees.
The financial projections are designed to meet a minimum operating reserve target of 90 days with at least 1.25x debt service coverage (calculated as net revenues / annual debt service). The City is projected to have very strong debt service coverage of at least 1.43x throughout the projection period. These financial targets are based on industry standard metrics to obtain a high credit rating and qualify for debt financing.
Chart A shows a graphical presentation of the 10-year financial projections.
Rate Survey
Chart B shows a regional sewer rate survey for FY 2021/22. The surveyed average monthly sewer bill for a single family home using 5 hcf per month is $96.70. The City’s sewer rates compare favorably with regional agencies and are in the average range at $94.07.
Wastewater Strength Factors
Table 6 shows the derivation of the wastewater strength factors. Based on a detailed review of wastewater enterprise costs, system costs are allocated 44% to flow, 28% to biological oxygen demand (BOD) and 28% total suspended solids (TSS). BWA uses this formula to calculate the strength factors for each customer class based on their estimated wastewater strength characteristics in milligrams per liter (mg/l).
Proposed Rate Schedule
Table 7 shows the proposed wastewater rate schedule for the next 5 years (FY 2022/23 to FY 2026/27).
City of Pacifica – Wastewater Rate Study Page 4
Table 1
City of Pacifica
Adopted Annual Wastewater Rates 2017/18 - 2021/22
Rate Increase % 8% 8% 8% 7% 7%
$/hcf 2017/18 2018/19 2019/20 2020/21 2021/22
Residential [1] $13.04476 $14.08834 $15.21541 $16.43264 $17.58293 $18.81373 Commercial [2] $13.04476 $14.08834 $15.21541 $16.43264 $17.58293 $18.81373 Minimum Charge $626.14 $676.24 $730.34 $788.76 $843.98 $903.06 Commerical Strength Factors
Car Washes 0.9
Cleaners 1.2
Laundromats 0.75
Restaurants with grease traps 1.6
Restaurants without grease traps 1.8
Gymnasiums 0.9
All other commercial use 1.0
2 - units calculated using total annual water use multiplied by strength factor 1 - units calculated using total annual use multiplied by 0.9 City of Pacifica – Wastewater Rate Study Page 5
Table 2
City of Pacifica
Expense Detail - Operations and Maintenance
EXPENSE FY 2021-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FUND 18 BUDGET PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Operations & Maintenance
18.940741.51200 Salaries - Regular $ 1,197,627 $ 1,408,556 3.0% $1,450,813 $1,494,337 $1,539,167 $1,585,342 $1,632,902 $1,681,889 $1,732,346 $1,784,317 $1,837,846
18.940741.51200.0275 Salaries - Regular
COVID $ 68,000 $ 68,000 3.0% $70,040 $72,141 $74,305 $76,535 $78,831 $81,196 $83,631 $86,140 $88,725
18.940741.51300 Salaries - Part-time $ 80,000 $ 80,000 3.0% $82,400 $84,872 $87,418 $90,041 $92,742 $95,524 $98,390 $101,342 $104,382
18.940741.51400 Salaries - Overtime $ 80,000 $ 80,000 3.0% $82,400 $84,872 $87,418 $90,041 $92,742 $95,524 $98,390 $101,342 $104,382
18.940741.51500 Retirement $ 289,913 $ 298,611 3.0% $307,569 $316,796 $326,300 $336,089 $346,172 $356,557 $367,254 $378,271 $389,619
18.940741.51500.0275 Retirement COVID $ 17,452 $ 17,452 3.0% $17,976 $18,515 $19,070 $19,642 $20,232 $20,839 $21,464 $22,108 $22,771
18.940741.51600 Benefits $ 295,968 $ 304,847 3.0% $313,993 $323,413 $333,115 $343,108 $353,402 $364,004 $374,924 $386,172 $397,757
18.940741.51600.0275 Benefits COVID $ 17,816 $ 18,351 3.0% $18,901 $19,468 $20,052 $20,654 $21,274 $21,912 $22,569 $23,246 $23,944
18.940741.51606 Shoe Allowance $ 2,600 $ 3,000 3.0% $3,090 $3,183 $3,278 $3,377 $3,478 $3,582 $3,690 $3,800 $3,914
18.940741.51608 Car Allowance $ 4,000 $ 4,000 3.0% $4,120 $4,244 $4,371 $4,502 $4,637 $4,776 $4,919 $5,067 $5,219
18.940741.51700 Conferences &
Training $ 14,000 $ 14,000 3.0% $14,420 $14,853 $15,298 $15,757 $16,230 $16,717 $17,218 $17,735 $18,267
18.940741.52102 Utility - PG&E $ 1,400,000 $ 1,500,000 3.0% $1,545,000 $1,591,350 $1,639,091 $1,688,263 $1,738,911 $1,791,078 $1,844,811 $1,900,155 $1,957,160
18.940741.52103 Utility - Water $ 78,000 $ 80,000 3.0% $82,400 $84,872 $87,418 $90,041 $92,742 $95,524 $98,390 $101,342 $104,382
18.940741.52104 Insurance $ 104,000 $ 107,120 3.0% $110,334 $113,644 $117,053 $120,565 $124,181 $127,907 $131,744 $135,696 $139,767
18.940741.52105 Telephone $ 34,000 $ 34,000 3.0% $35,020 $36,071 $37,153 $38,267 $39,415 $40,598 $41,816 $43,070 $44,362
18.940741.52220 Tax Collection
Expenses $ 78,000 $ 80,340 3.0% $82,750 $85,233 $87,790 $90,423 $93,136 $95,930 $98,808 $101,772 $104,825
18.940741.52300 Departmental Expense $ 38,000 $ 38,000 3.0% $39,140 $40,314 $41,524 $42,769 $44,052 $45,374 $46,735 $48,137 $49,581
18.940741.52300.0275 Departmental Expense
COVID $ 3,000 $ 3,000 3.0% $3,090 $3,183 $3,278 $3,377 $3,478 $3,582 $3,690 $3,800 $3,914
18.940741.52325 Operating Software $ 22,000 $ 23,000 3.0% $23,690 $24,401 $25,133 $25,887 $26,663 $27,463 $28,287 $29,136 $30,010
18.940741.52340 WWTP Operations
Supplies $ 60,000 $ 60,000 3.0% $61,800 $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286
18.940741.52340.0275 WWTP Operations
Supplies COVID $ 7,000 $ 7,000 3.0% $7,210 $7,426 $7,649 $7,879 $8,115 $8,358 $8,609 $8,867 $9,133
18.940741.52341 WWTP UV Supplies &
Services $ 100,000 $ 130,000 3.0% $133,900 $137,917 $142,055 $146,316 $150,706 $155,227 $159,884 $164,680 $169,621
18.940741.52342 WWTP Chemical
Expense $ 275,000 $ 280,000 3.0% $288,400 $297,052 $305,964 $315,142 $324,597 $334,335 $344,365 $354,696 $365,336
18.940741.52343 WWTP Laboratory
Supplies & Services $ 120,000 $ 100,000 3.0% $103,000 $106,090 $109,273 $112,551 $115,927 $119,405 $122,987 $126,677 $130,477
18.940741.52344 WWTP Sludge
Removal $ 140,000 $ 120,000 3.0% $123,600 $127,308 $131,127 $135,061 $139,113 $143,286 $147,585 $152,012 $156,573
18.940741.52400 Maintenance - Office
Equip $ 5,000 $ 5,000 3.0% $5,150 $5,305 $5,464 $5,628 $5,796 $5,970 $6,149 $6,334 $6,524
18.940741.52401 Maintenance - ATAD $ 30,000 $ 20,000 3.0% $20,600 $21,218 $21,855 $22,510 $23,185 $23,881 $24,597 $25,335 $26,095
18.940741.52402 Maintenance -
Biosolids $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52403 Maintenance -
Generator $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52404 Maintenance - Grit $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52405 Maintenance -
Instrument $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52406 Maintenance -Sand
Filter $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52407 Maintenance - SBR $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52408 Maintenance - SCADA $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52409 Maintenance - Solar
System $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52450 Maintenance -
Landscaping $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940741.52491 Maintenance - Biofilter $ 30,000 $ 30,000 3.0% $30,900 $31,827 $32,782 $33,765 $34,778 $35,822 $36,896 $38,003 $39,143
18.940741.52499 Maintenance -
Centrifuge $ 15,000 $ 15,000 3.0% $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572
18.940741.52500 Maintenance - Field
Equip $ 15,000 $ 15,000 3.0% $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572
18.940741.52501 Annual Motor Pool Exp $ 40,000 $ 40,000 3.0% $41,200 $42,436 $43,709 $45,020 $46,371 $47,762 $49,195 $50,671 $52,191
18.940741.52502 Annual
Depr/Replacement $ 17,000 $ 17,000 3.0% $17,510 $18,035 $18,576 $19,134 $19,708 $20,299 $20,908 $21,535 $22,181
18.940741.52700 Rentals & Lease Exp $ 20,000 $ 20,000 3.0% $20,600 $21,218 $21,855 $22,510 $23,185 $23,881 $24,597 $25,335 $26,095
18.940741.52800 Contractual Services $ 60,000 $ 60,000 3.0% $61,800 $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286
18.940741.52800.0275 Contractual Services
COVID $ 1,000 $ 1,000 3.0% $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305
18.940741.52818 SWRCB Permitting
Fees $ 60,000 $ 60,000 3.0% $61,800 $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286
18.940741.52828 Contractual - Legal
Services $ 190,000 $ 100,000 3.0% $103,000 $106,090 $109,273 $112,551 $115,927 $119,405 $122,987 $126,677 $130,477
18.940741.53781 Ins. Premi - Liab/Prop $ 707,000 $ 728,210 3.0% $750,056 $772,558 $795,735 $819,607 $844,195 $869,521 $895,606 $922,475 $950,149
18.940741.53782 Employment Risk Ins. $ 14,000 $ 14,000 3.0% $14,420 $14,853 $15,298 $15,757 $16,230 $16,717 $17,218 $17,735 $18,267
18.940741.53785 Administrative
Services $ 1,019,979 $ 1,000,000 3.0% $1,030,000 $1,060,900 $1,092,727 $1,125,509 $1,159,274 $1,194,052 $1,229,874 $1,266,770 $1,304,773
18.940741.55130 Capital Outlay -
Mach/Equip $ 30,000 $ 30,000 3.0% $30,900 $31,827 $32,782 $33,765 $34,778 $35,822 $36,896 $38,003 $39,143
18.940741.59155 Fines & Penalties $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048 TOTAL
OPERATIONS &
MAINTENANCE EXP.
$ 6,880,356 $ 7,114,487 $ 7,327,922 $ 7,547,759 $ 7,774,192 $ 8,007,418 $ 8,247,640 $ 8,495,070 $ 8,749,922 $ 9,012,419 $ 9,282,792 Escalation %
projected
City of Pacifica – Wastewater Rate Study Page 6
FY 2021-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FUND 18 BUDGET PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Collection Systems Maintenance
18.940742.51200 Salaries - Regular $ 1,697,450 $ 1,923,373 3.0% $1,981,074 $2,040,507 $2,101,722 $2,164,773 $2,229,717 $2,296,608 $2,365,506 $2,436,472 $2,509,566
18.940742.51300 Salaries - Part-time $ 5,000 $ 15,000 3.0% $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572
18.940742.51400 Salaries - Overtime $ 80,000 $ 82,400 3.0% $84,872 $87,418 $90,041 $92,742 $95,524 $98,390 $101,342 $104,382 $107,513
18.940742.51500 Retirement $ 42,377 $ 43,648 3.0% $44,957 $46,306 $47,695 $49,126 $50,600 $52,118 $53,681 $55,292 $56,951
18.940742.51600 Benefits $ 517,986 $ 533,526 3.0% $549,532 $566,018 $582,998 $600,488 $618,503 $637,058 $656,169 $675,855 $696,130
18.940742.51606 Shoe Allowance $ 3,600 $ 3,600 3.0% $3,708 $3,819 $3,934 $4,052 $4,173 $4,299 $4,428 $4,560 $4,697
18.940742.51608 Car Allowance $ 4,000 $ 4,000 3.0% $4,120 $4,244 $4,371 $4,502 $4,637 $4,776 $4,919 $5,067 $5,219
18.940742.51700 Conferences &
Training $ 17,000 $ 17,000 3.0% $17,510 $18,035 $18,576 $19,134 $19,708 $20,299 $20,908 $21,535 $22,181
18.940742.52103 Utility - Water $ 500 $ 500 3.0% $515 $530 $546 $563 $580 $597 $615 $633 $652
18.940742.52105 Telephone $ 11,000 $ 11,000 3.0% $11,330 $11,670 $12,020 $12,381 $12,752 $13,135 $13,529 $13,934 $14,353
18.940742.52300 Departmental Expense
$ 23,000 $ 23,000 3.0% $23,690 $24,401 $25,133 $25,887 $26,663 $27,463 $28,287 $29,136 $30,010
18.940742.52300.0275 Departmental Expense
COVID $ 1,000 $ 1,000 3.0% $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305
18.940742.52325 Operating Software $ 5,000 $ 5,000 3.0% $5,150 $5,305 $5,464 $5,628 $5,796 $5,970 $6,149 $6,334 $6,524
18.940742.52340 WWTP Operations
Supplies $ 98,000 $ 98,000 3.0% $100,940 $103,968 $107,087 $110,300 $113,609 $117,017 $120,528 $124,143 $127,868
18.940742.52340.0275 WWTP Operations
Supplies COVID $ 7,000 $ 7,000 3.0% $7,210 $7,426 $7,649 $7,879 $8,115 $8,358 $8,609 $8,867 $9,133
18.940742.52342 WWTP Chemical
Expense $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940742.52485 Maintenance - CMMS $ 32,600 $ 32,600 3.0% $33,578 $34,585 $35,623 $36,692 $37,792 $38,926 $40,094 $41,297 $42,536
18.940742.52490.0000.00
0 Maintenance -
Easement $ 10,000 $ 10,000 3.0% $10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048
18.940742.52492.0000.00
0 Maintenance - Anza
PS $ 5,000 $ 5,000 3.0% $5,150 $5,305 $5,464 $5,628 $5,796 $5,970 $6,149 $6,334 $6,524
18.940742.52493.0000.00
0 Maintenance - Brighton
PS $ 5,000 $ 5,000 3.0% $5,150 $5,305 $5,464 $5,628 $5,796 $5,970 $6,149 $6,334 $6,524
18.940742.52494.0000.00
0 Maintenance - Linda
Mar PS $ 21,000 $ 21,000 3.0% $21,630 $22,279 $22,947 $23,636 $24,345 $25,075 $25,827 $26,602 $27,400
18.940742.52495.0000.00
0 Maintenance -
Rockaway PS $ 12,000 $ 12,000 3.0% $12,360 $12,731 $13,113 $13,506 $13,911 $14,329 $14,758 $15,201 $15,657
18.940742.52496.0000.00
0 Maintenance - Sharp
Park PS $ 11,000 $ 11,000 3.0% $11,330 $11,670 $12,020 $12,381 $12,752 $13,135 $13,529 $13,934 $14,353
18.940742.52497.0000.00
0 Maintenance - Skyridge
PS $ 5,300 $ 5,300 3.0% $5,459 $5,623 $5,791 $5,965 $6,144 $6,328 $6,518 $6,714 $6,915
18.940742.52498.0000.00
0 Maintenance -CCTV $ 10,600 $ 10,600 3.0% $10,918 $11,246 $11,583 $11,930 $12,288 $12,657 $13,037 $13,428 $13,831
18.940742.52499.0000.00
0 Maintenance - Root
Foaming $ 20,000 $ 20,000 3.0% $20,600 $21,218 $21,855 $22,510 $23,185 $23,881 $24,597 $25,335 $26,095
18.940742.52501 Annual Motor Pool Exp $ 284,473 $ 280,000 3.0% $288,400 $297,052 $305,964 $315,142 $324,597 $334,335 $344,365 $354,696 $365,336
18.940742.52502 Annual Motor Pool
Depr/Replacement $ - $ - 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0
18.940742.52700 Rentals & Lease Exp $ 5,300 $ 5,300 3.0% $5,459 $5,623 $5,791 $5,965 $6,144 $6,328 $6,518 $6,714 $6,915
18.940742.52800 Contractual Services $ 60,000 $ 61,800 3.0% $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286 $80,635
18.940742.52800.0275 Contractual Services
COVID $ 1,000 $ 1,000 3.0% $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305
18.940742.55130 Capital Outlay -
Mach/Equip $ 60,000 $ 60,000 3.0% $61,800 $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286 TOTAL
COLLECTION
SYSTEM MAIN EXP.
$ 3,066,186 $ 3,318,647 $ 3,418,206 $ 3,520,752 $ 3,626,375 $ 3,735,166 $ 3,847,221 $ 3,962,638 $ 4,081,517 $ 4,203,962 $ 4,330,081 projected
Escalation %
City of Pacifica – Wastewater Rate Study Page 7
Table 3
City of Pacifica
Debt Service
Debt Service
Loan Source 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2012 Loan and Installment Agreement WW Charge Fund $447,334 $447,161 $446,983 $446,798 $446,607 $446,408 $446,203 $446,031 1997 State of California Water Resource
Control Board Loan WW Charge Fund 2,065,919 2,065,919 2,065,919 2,065,919 2014 Wastewater Revenue Refunding
Bonds WW Charge Fund 337,000 337,000 337,000 337,000 1,819,000 1,816,125 1,814,375 1,808,625 2017 Wastewater Revenue Bonds
WW Charge Fund 1,061,600 1,061,600 1,061,600 1,061,600 1,670,975 1,668,975 1,670,350 1,669,975 Total Debt Service $3,911,853 $3,911,680 $3,911,502 $3,911,317 $3,936,582 $3,931,508 $3,930,928 $3,924,631 total payment (pricipal + interest)
City of Pacifica – Wastewater Rate Study Page 8
TABLE 4 - CAPITAL IMPROVEMENT PROJECTS (COST IN THOUSAND DOLLARS) PROJECT 21 -22 22 -23 23 -24 24 -25 25 -26 26 -27 27 -28 28 -29 29 -30 30 -31 31 -32 TOTALS
COLLECTION SYSTEMS
Linda Mar Pump Station Upgrade $ 1,475 $ 590 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,065 Linda Mar Pump Station - Bar Screen Rebuild $ - $ 150 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150 Linda Mar Pump Station - New Washer/Compactor $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 160 $ 160 Rockaway PS Upgrade (Formerly Rockaway PS Upgrade FY 20-21) $ 100 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100 Rockaway PS - Bar Screen Rebuild $ - $ 150 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150 Sharp Park Pump Station Facility Improvements Project $ 500 $ 1,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000 Sharp Park Pump Station Bar Screen Rebuild $ - $ 250 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 250 Sharp Park Pump Station - New Washer/Compactor $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 160 $ 160 Anza Pump Station Rebuild $ 1,000 $ 1,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000 Sewer System Master Plan Update Phase 2 $ 20 $ - $ - $ - $ - $ - $ 90 $ - $ - $ - $ - $ 110 Collection System Projects $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,100 Lateral Grant Assistance $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 1,100 Relocation of Sewer Mainline at SF RV Park $ - $ - $ 200 $ 2,400 $ 1,200 $ - $ - $ - $ - $ - $ - $ 3,800 Collection System R&R Project Lower Linda Mar 1 $ - $ - $ 492 $ 2,786 $ - $ - $ - $ - $ - $ - $ - $ 3,278 Collection System R&R Project Lower Linda Mar 2 $ - $ - $ - $ 492 $ 2,786 $ - $ - $ - $ - $ - $ - $ 3,278 Collection System R&R Project Lower Linda Mar 3 $ - $ - $ - $ - $ 492 $ 2,786 $ - $ - $ - $ - $ - $ 3,278 Collection System R&R Project Fremont, Linda Mar Blvd & Catalina Ave $ - $ - $ - $ - $ - $ 210 $ 1,190 $ - $ - $ - $ - $ 1,400 Collection System R&R Project Vallemar 1 $ - $ - $ - $ - $ - $ - $ 557 $ 3,152 $ - $ - $ - $ 3,709 Collection System R&R Project Vallemar 2 $ - $ - $ - $ - $ - $ - $ - $ 557 $ 3,152 $ - $ - $ 3,709 Collection System R&R Project Vallemar 3 $ - $ - $ - $ - $ - $ - $ - $ - $ 557 $ 3,152 $ - $ 3,709 Collection System R&R Project Vallemar 4 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 557 $ 3,152 $ 3,709 Collection System R&R Project Fairway Park 1 & 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 990 $ 990 Rockaway Beach Ave (San Sewer) 1&2 $ - $ - $ 506 $ 2,863 $ 506 $ 2,863 $ - $ - $ - $ - $ - $ 6,738 Forcemain Condition Assessment $ - $ - $ - $ 75 $ - $ - $ - $ - $ - $ - $ - $ 75 Linda Mar Pump Station Jockey Pump Upgrade $ - $ 50 $ 150 $ - $ - $ - $ - $ - $ - $ - $ - $ 200 Collection System Projects $ 3,295 $ 3,890 $ 1,548 $ 8,816 $ 5,184 $ 6,059 $ 2,037 $ 3,909 $ 3,909 $ 3,909 $ 4,662 $ 47,218 Total Collection System Projects FY 2022-27
Total Collection System Projects FY 2027-32
CAPITAL IMPROVEMENT PROJECTS (COST IN THOUSAND DOLLARS) PROJECT 21 -22 22 -23 23 -24 24 -25 25 -26 26 -27 27 -28 28 -29 29 -30 30 -31 31 -32 TOTALS
WASTEWATER TREATMENT PLANT
Digesters - ATAD Modification Phase 3 $ 175 $ 150 $ - $ - $ 100 $ - $ - $ 100 $ - $ - $ 100 $ 625 CCWRP Pump Replacement $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 550 CCWRP Centrifuges $ 25 $ 50 $ - $ - $ - $ 250 $ - $ - $ - $ 250 $ - $ 575 CCWRP SCADA and PLC Upgrade $ 200 $ 400 $ 400 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,000 Calera Creek and Wetlands Maintenance $ 75 $ - $ 30 $ - $ 30 $ - $ - $ 30 $ - $ 30 $ - $ 195 CCWRP Parking Lot Restoration $ - $ - $ - $ - $ 100 $ - $ - $ - $ - $ - $ - $ 100 CCWRP Roof Improvements $ - $ 200 $ - $ - $ - $ - $ - $ - $ - $ - $ 200 CCWRP Laboratory Room Improvement $ 25 $ - $ - $ - $ 25 $ - $ - $ - $ - $ 25 $ - $ 75 CCWRP Security & Gate System $ 70 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 70 CCWRP Blower Replacement $ 30 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 530 San Pedro Creek & Pacifica State Beach TMDL, BMP, Monitoring Plan $ 10 $ 10 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 20 CCWRP Arc Flash Hazard Analysis $ 65 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 65 CCWRP R&R Project $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 550 CCWRP R&R Project - Transformer Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - CCWRP R&R Project - Grit Classifier Upgrade $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - CCWRP R&R Project - Sand Filter Upgrade $ 170 $ 150 $ - $ - $ 750 $ 750 $ - $ - $ - $ - $ - $ 1,820 Ultraviolet Disinfection System Upgrade $ 122 $ 3,760 $ 2,980 $ 4,570 $ - $ - $ - $ - $ - $ - $ - $ 11,432 CCWRP Photovoltaic System Improvement Project $ 280 $ 100 $ 1,100 $ - $ - $ - $ - $ - $ - $ - $ 1,480 CCWRP Process Optimization Projects $ 50 $ 100 $ - $ - $ 100 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 550 Sewer Rate Study for FY 2022-2027 $ 20 $ - $ - $ - $ - $ 50 $ 20 $ - $ - $ - $ 50 $ 140 CCWRP R&R Project - Drain Pump Station Piping Replacement $ 40 $ 100 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 140 CCWRP R&R Project - Plant Effluent Pipe Line Spot Repair $ 100 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100 CCWRP Electrical Condition Assessment and Improvements $ 50 $ 100 $ 1,100 $ 1,150 $ - $ - $ - $ - $ - $ - $ - $ 2,400 CCWRP Environmental Compliance Project $ 50 $ - $ - $ - $ 50 $ - $ - $ - $ 50 $ - $ - $ 150 CCWRP Admin Building Elevator Assessement $ 40 $ - $ - $ - $ - $ 100 $ - $ - $ - $ - $ - $ 140 CCWRP Headworks Feasibility and Improvements $ 50 $ 100 $ 300 $ - $ 1,500 $ 3,500 $ 5,000 $ - $ - $ - $ - $ 10,450 CCWRP Vehicle Storage and Office Facility $ 17 $ - $ - $ - $ - $ - $ - $ - $ 400 $ 4,000 $ - $ 4,417 CCWRP Projects $ 1,764 $ 5,170 $ 5,160 $ 6,970 $ 2,805 $ 4,850 $ 5,220 $ 330 $ 650 $ 4,505 $ 350 $ 37,774 Total Wastewater Treatment Plant Projects FY 2022-27
Total Wastewater Treatment Plant Projects FY 2027-32
Collection System and Wastewater Treatment Plant Projects $ 5,059 $ 9,060 $ 6,708 $ 15,786 $ 7,989 $ 10,909 $ 7,257 $ 4,239 $ 4,559 $ 8,414 $ 5,012 $ 84,992 lection System and Wastewater Treatment Plant Projects FY 2022-27 lection System and Wastewater Treatment Plant Projects FY 2027-32
CAPITAL IMPROVEMENT PROJECTS (COST IN THOUSAND DOLLARS) PROJECT 21 -22 22 -23 23 -24 24 -25 25 -26 26 -27 27 -28 28 -29 29 -30 30 -31 31 -32 TOTALS OTHER
540 Crespi Drive Tree Replacement $ 10 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 10 Beach Blvd Infrastructure Resilency Project $ - $ - $ - $ - $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ - $ - $ 40,000 Other Wastewater Projects $ 10 $ - $ - $ - $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ - $ - $ 40,010 Total Wastewater Other Projects FY 2022-27
Total Wastewater Other Projects FY 2027-32
$ 10,000
$ 30,000
$ 25,497
$ 18,426
$ 24,955
$ 11,055
$ 50,452
$ 29,481
City of Pacifica – Wastewater Rate Study Page 9
Table 5
City of Pacifica
Wastewater Cashflow Projection
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Beginning Fund Balance
Unrestricted Charge Fund $6,359,443 $10,415,877 $47,292,020 $50,009,416 $52,868,979 $56,194,679 $112,480,186 $115,526,298 $119,102,026 $123,229,422 $127,936,777 Unrestricted Construction Fund $777,246 -$4,291,755 -$13,351,755 -$20,059,755 -$35,845,755 -$43,834,755 -$64,743,755 -$82,000,755 -$96,239,755 -$110,798,755 -$119,212,755 Total Unrestricted Funds $7,136,688 $6,124,122 $33,940,265 $29,949,662 $17,023,225 $12,359,924 $47,736,431 $33,525,544 $22,862,272 $12,430,668 $8,724,023 % Rate Revenue Increase 7.0% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% % Capacity Fee Revenue Increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% % Growth 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
REVENUE
Charge Fund Revenue
Investment Earnings
Sewer Service Charges 17,514,293 18,217,930 18,949,835 19,711,145 20,503,040 21,326,750 22,183,552 23,074,776 24,001,805 24,966,078 25,969,090 New Loan 1 (4%, 30 Yrs, 1.5% Fees) 31,554,000
New Loan 2 (4%, 30 Yrs, 1.5% Fees) 52,405,000
Miscellaneous Income1 2,000,000
Pension Obligation Bond Repayment 400,000 400,000 297,339 Total Charge Fund Revenue $17,914,293 $52,171,930 $19,247,174 $19,711,145 $20,503,040 $73,731,750 $22,183,552 $23,074,776 $24,001,805 $24,966,078 $25,969,090 TOTAL REVENUE $17,914,293 $52,171,930 $19,247,174 $19,711,145 $20,503,040 $73,731,750 $22,183,552 $23,074,776 $24,001,805 $24,966,078 $25,969,090
EXPENSES
Charge Fund Expenses
Operations and Maintenance $6,880,356 $7,114,487 $7,327,922 $7,547,759 $7,774,192 $8,007,418 $8,247,640 $8,495,070 $8,749,922 $9,012,419 $9,282,792 Collection System Maintenance 3,066,186 3,318,647 3,418,206 3,520,752 3,626,375 3,735,166 3,847,221 3,962,638 4,081,517 4,203,962 4,330,081 New Loan 1 Debt Service 0 926,071 1,852,143 1,852,143 1,852,143 1,852,143 1,852,143 1,852,143 1,852,143 1,852,143 1,852,143 New Loan 2 Debt Service 0 0 1,538,023 3,076,045 3,076,045 3,076,045 3,076,045 3,076,045 State Loan 2,065,919 0 0 0 0 0 0 0 0 0 0
Sewer Loan 446,798 446,607 446,408 446,203 446,031 445,769 445,540 445,303 445,057 444,803 444,540 2014 Refunding Bond 337,000 1,819,000 1,816,124 1,814,375 1,808,625 199,875 0 0 0 0 0 2017 Refunding Bond 1,061,600 1,670,975 1,668,975 1,670,350 1,669,975 1,667,850 1,668,850 1,667,850 1,669,725 1,669,350 1,671,600 Total Charge Fund $13,857,859 $15,295,787 $16,529,778 $16,851,582 $17,177,340 $17,446,243 $19,137,439 $19,499,048 $19,874,409 $20,258,723 $20,657,201 Construction Fund
Capital Project2 $5,069,000 $9,060,000 $6,708,000 $15,786,000 $7,989,000 $20,909,000 $17,257,000 $14,239,000 $14,559,000 $8,414,000 $5,012,000 Total Construction Fund $5,069,000 $9,060,000 $6,708,000 $15,786,000 $7,989,000 $20,909,000 $17,257,000 $14,239,000 $14,559,000 $8,414,000 $5,012,000 TOTAL EXPENSES $18,926,859 $24,355,787 $23,237,778 $32,637,582 $25,166,340 $38,355,243 $36,394,439 $33,738,048 $34,433,409 $28,672,723 $25,669,201 Net Revenue
Charge Fund $4,056,434 $36,876,143 $2,717,396 $2,859,563 $3,325,700 $56,285,507 $3,046,113 $3,575,728 $4,127,396 $4,707,355 $5,311,889 Construction Fund -$5,069,000 -$9,060,000 -$6,708,000 -$15,786,000 -$7,989,000 -$20,909,000 -$17,257,000 -$14,239,000 -$14,559,000 -$8,414,000 -$5,012,000 Total Net Revenue -$1,012,566 $27,816,143 -$3,990,604 -$12,926,437 -$4,663,300 $35,376,507 -$14,210,887 -$10,663,272 -$10,431,604 -$3,706,645 $299,889 Ending Fund Balance
Unrestricted Operating Fund $10,415,877 $47,292,020 $50,009,416 $52,868,979 $56,194,679 $112,480,186 $115,526,298 $119,102,026 $123,229,422 $127,936,777 $133,248,666 Unrestricted Capital Fund -$4,291,755 -$13,351,755 -$20,059,755 -$35,845,755 -$43,834,755 -$64,743,755 -$82,000,755 -$96,239,755 -$110,798,755 -$119,212,755 -$124,224,755 Total Unrestricted Funds $6,124,122 $33,940,265 $29,949,662 $17,023,225 $12,359,924 $47,736,431 $33,525,544 $22,862,272 $12,430,668 $8,724,023 $9,023,912 Total Unrestricted Fund Target
(90 Days Charge Fund Expenses) $3,417,006 $3,771,564 $4,075,836 $4,155,185 $4,235,509 $4,301,813 $4,718,821 $4,807,984 $4,900,539 $4,995,301 $5,093,556 # Days Funded 161 810 661 369 263 999 639 428 228 157 159 Debt Service Coverage (Min 1.25x) 2.04 2.09 1.47 1.49 1.58 1.68 1.43 1.51 1.59 1.67 1.75 Target Met yes yes yes yes yes yes yes yes yes yes yes
1 - $2 MM Anza pump station insurance reimbursement
2 - Total Short and Long Term Capital Improvement Plan. Includes General Fund Transfers projected
City of Pacifica – Wastewater Rate Study Page 10
City of Pacifica – Wastewater Rate Study Page 11
Table 6
City of Pacifica
Wastewater Strength Factors
Customer Class Strength Factor (Rounded)
Residential BOD SS
Single Family 175 175 1.0
Multi Family 175 175 1.0
Commercial
Car Washes 30 230 0.9
Cleaners 300 160 1.2
Laundromats 100 95 0.75
Restaurants with grease traps 440 265 1.6
Restaurants without grease traps 550 300 1.8
Gymnasiums 150 150 0.9
Other commercial use 175 175 1.0
Formula:
Strength Factor = 44%+(28%*BOD(MG/L)/175+28%*TSS(MG/L)/175) Estimated Strength (mg/l)
City of Pacifica – Wastewater Rate Study Page 12
Table 7
City of Pacifica
Proposed Annual Wastewater Rates 2022/23 - 2026/27
Current
2022-23 2023-24 2024-25 2025-26 2026-27
Percent Increase 3.5% 3.5% 3.5% 3.5% 3.5%
Residential [1] $18.81373 $19.47221 $20.15374 $20.85912 $21.58919 $22.34481 Commercial [2] $18.81373 $19.47221 $20.15374 $20.85912 $21.58919 $22.34481 Minimum Charge $903.06 $934.67 $967.38 $1,001.24 $1,036.28 $1,072.55 2 - units calculated using total annual water use multiplied by strength factor Commerical Strength Factors
Car Washes 0.9
Cleaners 1.2
Laundromats 0.75
Restaurants with grease traps 1.6
Restaurants without grease traps 1.8
Gymnasiums 0.9
All other commercial use 1.0
1 - units calculated using total annual use multiplied by 0.9 Maximum Proposed Rate
City of Pacifica – Wastewater Rate Study Page 13