Agenda packet — Porterville City Council, November 21, 2023 (part 2 of 3)

Exhibit D
reasonable expenses of management and repair and all other expenses necessary to maintain and preserve the System in good repair and working order, and including all reasonable and necessary administrative costs of the Recipient that are charged directly or apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if any), the cost of permits, licenses, and charges to operate the System and insurance premiums; but excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and amortization of intangibles. • “Reimbursement Request” means the Recipient’s request for Project Funds from the State Water Board as set forth in Exhibit B.
• "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including all rates, fees, and charges (including connection fees and charges) as received by the Recipient for the services of the System, and all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, and any refundable deposits made to establish credit, and advances or contributions in aid of construction.
• “System” means all drinking water collection, transport, treatment, storage, and delivery facilities, including land and easements thereof, owned by the City of Porterville, or its successor agency, and all other properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be a part of the System, together with all additions, betterments, extensions, or improvements to such facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed. • “Useful Life” means the economically useful life of the Project beginning at Project Completion and is set forth in Exhibit A.

3. Acknowledgements.

The Recipient must include the following acknowledgement in any document, written report, or brochure to be shared with the general public prepared in whole or in part pursuant to this Agreement:
“Funding for this project has been provided in full or in part under the Drinking Water State Revolving Fund, which may include capitalization funding from the United States Environmental Protection Agency through an agreement with the State Water Resources Control Board. The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use.”

4. Rates and Charges. The Recipient must, to the extent permitted by law, fix, prescribe and collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory and which will be sufficient to generate Revenues in the amounts necessary to cover Operations and Maintenance Costs, and must ensure that Net Revenues are in an amount necessary to meet its obligations under this Agreement. The Recipient may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will at all times be sufficient to meet the requirements of this section.

5. [RESERVED]

6. [RESERVED].

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D

7. Environmental/Technical Special Conditions
Technical:

1. The Recipient shall submit its professional engineering services contract to the Division prior to disbursement of funds for costs incurred under such contract.

2. The Recipient shall not solicit bids, award a contract, or commence construction activities until final plans and specifications are approved by the Division of Drinking Water Tulare District Office Engineer and the Project Manager.

3. The Recipient must submit final consolidation agreements with Akin WC and Central MWC, in a form satisfactory to the Division, and receive written approval from the Project Manager to proceed before Project Funds may be disbursed for any Project Costs under the Agreement.

4. Upon completion of the Project the Recipient shall submit a water supply permit amendment request for review to the Division of Drinking Water Tulare District Office.

Environmental:

1. The documents identified below are incorporated by reference and the Recipient shall comply with the conditions and recommendations therein:
a. The Mitigation Monitoring and Reporting Program adopted by the State Water Board on June 16, 2016 for the Project. The Recipient shall implement all mitigation measures therein. b. The letter dated February 12, 2020, from Patricia Cole of the United States Fish and Wildlife Service, San Joaquin Valley Division to Douglas E. Eberhardt of the United States Environmental Protection Agency, including, but not limited to, the following:
i. Implement Avoidance and Minimization Measures and Best Management Practices prior to and during construction activities to minimize and avoid effects to the San Joaquin kit fox.
c. The Mitigation Monitoring and Reporting Program adopted by the City of Porterville on April 21, 2020 for the Central Mutual Water Company Consolidation Project. The Recipient shall implement all mitigation measures therein.

2. In the Recipient’s Quarterly Reports submitted pursuant to this Agreement, the Recipient shall include a discussion of the status of its compliance with environmental measures identified in this Exhibit D, with separate sections clearly labeled and titled, discussing the status of Recipient’s compliance.

3. In the Recipient’s Project Completion Report submitted pursuant to this Agreement, the Recipient shall include a discussion of its compliance with environmental measures identified in this Exhibit D, with separate sections clearly labeled and titled, discussing the status of Recipient’s compliance.

8. [RESERVED].

9. Appointment of Receiver/Custodian. Upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the State Water Board under this Agreement, the State Water Board may make application for the appointment of a receiver or custodian of the Revenues, pending such proceeding, with such power as the court making such appointment may confer.

10. [RESERVED].

11. Damages for Breach of Federal Conditions. In the event that any breach of any of the provisions of this Agreement by the Recipient results in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D

12. [RESERVED].

13. Operation and Maintenance. The Recipient shall sufficiently and properly staff, operate, and maintain the facility and structures constructed or improved as part of the project throughout the term of this Agreement, consistent with the purposes of this Agreement. The Recipient assumes all operations and maintenance costs of the facilities and structures; the State Water Board shall not be liable for any cost of such maintenance, management or operation.

14. Insurance. The Recipient will procure and maintain or cause to be maintained insurance on the System and Project with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks (including damage to or destruction of the System or Project) as are usually covered in connection with systems similar to the System or Project. Such insurance may be maintained by a self-insurance plan so long as such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk management program. In the event of any damage to or destruction of the System or Project caused by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System or Project. The Recipient must begin such reconstruction, repair or replacement as expeditiously as possible, and must pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same must be completed and the System and Project must be free and clear of all claims and liens. Recipient agrees that for any policy of insurance concerning or covering the construction of the Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be issued showing the State Water Board, its officers, agents, employees, and servants as additional insured; and must provide the Division with a copy of all such certificates prior to the commencement of construction of the Project.

15. Notice Events. Upon the occurrence of any of the following events, the Recipient must notify the Division’s Deputy Director and Party Contacts by phone and email within the time specified below:
a. The Recipient must notify the Division within 24 hours by phone at (916) 327-9978 and by email to [email protected] of any discovery of any potential tribal cultural resource and/or archaeological or historical resource. Should a potential tribal cultural resource and/or archaeological or historical resource be discovered during construction or Project implementation, the Recipient must ensure that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the Division has determined what actions should be taken to protect and preserve the resource. The Recipient must implement appropriate actions as directed by the Division.
b. The Recipient must notify the Division promptly of the occurrence of any of the following events:
i. Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in anticipation of any of the foregoing;
ii. Change of ownership of the Project (no change of ownership may occur without written consent of the Division);
iii. Loss, theft, damage, or impairment to Project;
iv. Events of Default, except as otherwise set forth in this section; City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
v. A proceeding or action by a public entity to acquire the Project by power of eminent domain.
vi. Any litigation pending or threatened with respect to the Project or the Recipient’s technical, managerial or financial capacity or the Recipient’s continued existence; vii. Consideration of dissolution, or disincorporation; viii. Enforcement actions by or brought on behalf of the State Water Board or Regional Water Board.
ix. The discovery of a false statement of fact or representation made in this Agreement or in the application to the Division for this funding, or in any certification, report, or request for reimbursement made pursuant to this Agreement, by the Recipient, its employees, agents, or contractors;
x. Any substantial change in scope of the Project. The Recipient must undertake no substantial change in the scope of the Project until prompt written notice of the proposed change has been provided to the Division and the Division has given written approval for the change;
xi. Any circumstance, combination of circumstances, or condition, which is expected to or does delay Completion of Construction for a period of ninety (90) days or more; xii. Any Project monitoring, demonstration, or other implementation activities required in this Agreement;
xiii. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by state representatives with at least ten (10) working days’ notice to the Division; xiv. Any event requiring notice to the Division pursuant to any other provision of this Agreement.
xv. Completion of work on the Project.
xvi. The Recipient must promptly notify the Division and Party Contacts of cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more;
xvii. The Recipient must promptly notify the Division and Party Contacts of the discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. Should a federally protected species be unexpectedly encountered during implementation of the Project, the Recipient agrees to promptly notify the Division. This notification is in addition to the Recipient’s obligations under the federal Endangered Species Act;
xviii. The Recipient must promptly notify the Division and Party Contacts of Completion of Construction, and Project Completion;
xix. The Recipient must promptly notify the Division and Party Contacts of the award of the prime construction contract for the Project; and the Recipient must promptly notify the Division and Party Contacts of Initiation of construction of the Project.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
xx. The occurrence of a material breach or event of default under any Recipient obligation that results in the acceleration of principal or interest or otherwise requires immediate prepayment, repurchase or redemption.
xxi. [RESERVED].

16. Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project. The Recipient agrees that, except as provided in this Agreement, it will not abandon, substantially discontinue use of, lease, sell, transfer ownership of, or dispose of all or a significant part or portion of the Project during the Useful Life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all disbursed Project Funds or all or any portion of all remaining funds covered by this Agreement together with accrued interest and any penalty assessments that may be due.

17. State Cross-Cutters. Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following for the term of the Agreement:
a) The California Environmental Quality Act (CEQA), as set forth in Public Resources Code 21000 et seq. and in the CEQA Guidelines at Title 14, Division 6, Chapter 3, Section 15000 et seq. b) Water Conservation requirements, including regulations in Division 3 of Title 23 of the California Code of Regulations.
c) Monthly Water Diversion Reporting requirements, including requirements set forth in Water Code section 5103.
d) Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in Sections 1725.5 and 1771.1 of the Labor Code. e) Volumetric Pricing & Water Meters requirements, including the requirements of Water Code sections 526 and 527.
f) Urban Water Management Plan requirements, including the Urban Water Management Planning Act (Water Code, § 10610 et seq.).
g) Urban Water Demand Management requirements, including the requirements of Section 10608.56 of the Water Code.
h) Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002. i) Agricultural Water Management Plan Consistency requirements, including the requirements of Water Code section 10852.
j) Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.
k) The Recipient agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with directives or orders issued pursuant to Division 7 of the Water Code.

18. Financial Management Systems. The Recipient must comply with federal standards for financial management systems. The Recipient agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit preparation of reports required by the federal government and tracking of Project funds to a level of expenditure adequate to establish that such funds have not been City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
used in violation of federal or state law or the terms of this Agreement. To the extent applicable, the Recipient is bound by, and must comply with, the provisions and requirements of the federal Single Audit Act of 1984 and 2 CFR Part 200, subpart F, and updates or revisions, thereto.

19. Access and Inspection. In addition to the obligations set forth in section 2 of the General Terms and Conditions incorporated in Exhibit C of this Agreement, the Recipient must ensure that the United States Environmental Protection Agency, the Office of Inspector General, any member of Congress, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during the term of the Agreement.

20. Fraud, Waste, and Abuse. The Recipient shall prevent fraud, waste, and the abuse of Project Funds, and shall cooperate in any investigation of such activities that are suspected in connection with this Agreement. The Recipient understands that discovery of any evidence of misrepresentation or fraud related to reimbursement requests, invoices, proof of payment of invoices, or other supporting information, including but not limited to double or multiple billing for time, services, or any other eligible cost, may result in referral to the Attorney General’s Office or the applicable District Attorney’s Office for appropriate action. The Recipient further understands that any suspected occurrences of false claims, misrepresentation, fraud, forgery, theft or any other misuse of Project Funds may result in withholding of reimbursements and/or the termination of this Agreement requiring the immediate repayment of all funds disbursed hereunder.

21. Disputes. The Recipient must continue with the responsibilities under this Agreement during any dispute.

The Recipient may, in writing, appeal a staff decision within 30 days to the Deputy Director of the Division or designee, for a final Division decision. The Recipient may appeal a final Division decision to the State Water Board within 30 days. The Office of the Chief Counsel of the State Water Board will prepare a summary of the dispute and make recommendations relative to its final resolution, which will be provided to the State Water Board’s Executive Director and each State Water Board Member. Upon the motion of any State Water Board Member, the State Water Board will review and resolve the dispute in the manner determined by the State Water Board. Should the State Water Board determine not to review the final Division decision, this decision will represent a final agency action on the dispute. This provision does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.

This section relating to disputes does not establish an exclusive procedure for resolving claims within the meaning of Government Code sections 930 and 930.4.

22. Additional Representations and Warranties. The Recipient makes the following representations and warranties:
a. [RESERVED].
b. The Recipient has not made any untrue statement of a material fact in its application for this financial assistance, or omitted to state in its application, a material fact that makes the statements in its application not misleading.
c. The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.
d. The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date set forth on the first page hereof, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date set forth on the Cover Page.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
e. Except as set forth in this paragraph, there are, as of the date of execution of this Agreement by the Recipient, no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which materially affect the financial condition or operations of the Recipient, the Revenues, and/or the Project.
f. There are no proceedings, actions, or offers by a public entity to acquire by purchase or the power of eminent domain any of the real or personal property related to or necessary for the Project.
g. The Recipient is duly organized and existing and in good standing under the laws of the State of California. Recipient must at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with state or federal audit disallowances. h. Any financial statements or other financial documentation of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements or other financial documentation: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements or other financial documentation, there has been no material adverse change in the financial condition of the Recipient, nor have any assets or properties reflected on such financial statements or other financial documentation been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Recipient and approved in writing by the State Water Board.
i. The Recipient is current in its continuing disclosure obligations associated with its material debt, if any.
j. The Recipient has no conflicting or material obligations, except as set forth in this paragraph. k. The Recipient legally possesses all real property rights necessary for the purposes of this Agreement, not subject to third party revocation, which rights extend at least to the Records Retention End Date of this Agreement, except as set forth in this paragraph. l. The Recipient and its principals, to the best of the Recipient’s knowledge and belief, are not presently debarred, suspended, proposed for debarment, declared ineligible, or otherwise excluded from participation in any work overseen, directed, funded, or administered by the State Water Board program for which this grant funding is authorized; nor have they engaged or permitted the performance of services covered by this Agreement from parties that are debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this grant funding is authorized.
m. The Recipient possesses all water rights necessary for this Project.

23. Federal SRF Requirements. The Recipient acknowledges, warrants compliance with, and covenants to continuing compliance with the following federal terms and conditions for the Useful Life of the Project:
a. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient shall not purchase “iron and steel products” produced outside of the United States on this Project. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
Recipient hereby certifies that all “iron and steel products” used in the Project were or will be produced in the United States. For purposes of this section, the term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other elements.
b. The Recipient must include in full the Wage Rate Requirements (Davis-Bacon) language incorporated by reference in Section 2 of this Agreement in all construction contracts and subcontracts.
c. The Recipient shall notify the State Water Board and the USEPA contact of public or media events publicizing the accomplishment of significant events related to this Project and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days’ notice.
d. The Recipient shall comply with applicable EPA general terms and conditions found at http://www.epa.gov/ogd.
e. No Recipient may receive funding under this Agreement unless it has provided its DUNS number to the State Water Board.
f. [RESERVED]
g. The Recipient represents and warrants that it and its principals are not excluded or disqualified from participating in this transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the Code of Federal Regulations (2 CFR). If the Recipient is excluded after execution of this Agreement, the Recipient shall notify the Division within ten (10) days and shall inform the Division of the Recipient’s exclusion in any request for amendment of this Agreement. The Recipient shall comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such compliance is a condition precedent to the State Water Board’s performance of its obligations under this Agreement. When entering into a covered transaction as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR.
h. To the extent applicable, the Recipient shall disclose to the State Water Board any potential conflict of interest consistent with USEPA’s Final Financial Assistance Conflict of Interest Policy at https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy. A conflict of interest may result in disallowance of costs.
i. USEPA and the State Water Board have the right to reproduce, publish, use and authorize others to reproduce, publish and use copyrighted works or other data developed under this assistance agreement.
j. Where an invention is made with Project Funds, USEPA and the State Water Board retain the right to a worldwide, nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention owned by the Recipient. The Recipient must utilize the Interagency Edison extramural invention reporting system at http://iEdison.gov and shall notify the Division when an invention report, patent report, or utilization report is filed.

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
k. The Recipient agrees that any reports, documents, publications or other materials developed for public distribution supported by this Agreement shall contain the Disclosure statement set forth in Exhibit A.
l. The Recipient acknowledges that it is encouraged to follow guidelines established under Section 508 of the Rehabilitation Act, codified at 36 CFR Part 1194, with respect to enabling individuals with disabilities to participate in its programs supported by this Project. m. The Recipient, its employees, contractors and subcontractors and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, or use forced labor in the performance of this Agreement. The Recipient must include this provision in its contracts and subcontracts under this Agreement. The Recipient must inform the State Water Board immediately of any information regarding a violation of the foregoing. The Recipient understands that failure to comply with this provision may subject the State Water Board to loss of federal funds. The Recipient agrees to compensate the State Water Board for any such funds lost due to its failure to comply with this condition, or the failure of its contractors or subcontractors to comply with this condition. The State Water Board may unilaterally terminate this Agreement if the Recipient that is a private entity is determined to have violated the foregoing.
n. The Recipient certifies to the best of its knowledge and belief that:
i. No federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. ii. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with this Agreement, the Recipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, and notify the State Water Board.
iii. The Recipient shall require this certification from all parties to any contract or agreement that the Recipient enters into and under which the Recipient incurs costs for which it seeks disbursements under this Agreement.
o. The Recipient must comply with the following federal non-discrimination requirements:
i. Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, and national origin, including limited English proficiency (LEP). ii. Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons with disabilities.
iii. The Age Discrimination Act of 1975, which prohibits age discrimination. iv. Section 13 of the Federal Water Pollution Control Act Amendments of 1972, which prohibits discrimination on the basis of sex.
v. 40 CFR Part 7, as it relates to the foregoing.
vi. Executive Order 13798, including, to the greatest extent practicable and to the extent permitted by law, the requirement to respect and protect the freedom of persons and organizations to engage in political and religious speech vii. All applicable federal civil rights regulations, including statutory and national policy requirements (2 CFR section 200.300).

City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
p. Executive Order No. 11246. The Recipient shall include in its contracts and subcontracts related to the Project the following provisions:
"During the performance of this contract, the contractor agrees as follows:"(a) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.
"(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin. "(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
"(d) The contractor will comply with all provisions of Executive Order No. 11246 of Sept. 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. "(e) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
"(f) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of Sept 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. "(g) The contractor will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of Sept. 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, That in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States."
City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
q. The Recipient agrees to comply with the requirements of USEPA’s Program for Utilization of Small, Minority and Women’s Business Enterprises as set forth in this Agreement. r. Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans; 42 USC § 7606; 33 USC § 1368. Except where the purpose of this Agreement is to remedy the cause of the violation, the Recipient may not procure goods, services, or materials from suppliers excluded under the federal System for Award Management: http://www.sam.gov/ . s. Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended; 42 USC §§4601-4655. The Recipient must comply with the Act’s implementing regulations at 49 CFR 24.101 through 24.105.
t. The Recipient agrees that if its network or information system is connected to USEPA networks to transfer data using systems other than the Environmental Information Exchange Network or USEPA’s Central Data Exchange, it will ensure that any connections are secure. u. All geospatial data created pursuant to this Agreement that is submitted to the State Water Board for use by USEPA or that is submitted directly to USEPA must be consistent with Federal Geographic Data Committee endorsed standards. Information on these standards may be found at www.fgdc.gov.
v. If the Recipient is a water system that serves 500 or fewer persons, the Recipient represents that it has considered publicly-owned wells as an alternative drinking water supply. w. The Recipient represents that it is not a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and it is not a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24 months. x. The Recipient agrees to immediately notify the Project Manager in writing about any allegation of research misconduct involving research activities that are supported in whole or in part with EPA funds under this Project, including fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results, or ordering, advising, or suggesting that subordinates engage in research misconduct.
y. The Recipient agrees to comply with, and require all contractors and subcontractors to comply with, EPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epa-scientificintegrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.
z. The Recipient shall not suppress, alter, or otherwise impede the timely release of scientific findings or conclusions; intimidate or coerce scientists to alter scientific data, findings, or professional opinions or exert non-scientific influence on scientific advisory boards; knowingly misrepresent, exaggerate, or downplay areas of scientific uncertainty; or otherwise violate the EPA’s Scientific Integrity Policy. The Recipient must refrain from acts of research misconduct, including publication or reporting, as described in EPA’s Policy and Procedures for Addressing Research Misconduct, Section 9.C, and must ensure scientific findings are generated and City of Porterville
Project No.: 5410010-018C/ 5400655-001C
Agreement No.: SWRCB0000000000D2002017

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Exhibit D
disseminated in a timely and transparent manner, including scientific research performed by contractors and subcontractors.
aa. The Recipient agrees to comply with the Animal Welfare Act of 1966 (7 USC 2131-2156).

Recipient also agrees to abide by the “U.S. Government Principles for the Utilization and Care of Vertebrate Animals used in Testing, Research, and Training,” available at http://grants.nih.gov/grants/olaw/references/phspol.htm#USGovPrinciples. bb. The Recipient certifies that no Project Funds will be used on:
i. Video surveillance or telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities), telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
ii. Telecommunications or video surveillance services produced by such entities; iii. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country; or
iv. Other telecommunications or video surveillance services or equipment in violation of 2 CFR 200.216.

Item No.

14. CITY COUNCIL AGENDA – NOVEMBER 21, 2023
SUBJECT: Public Hearing and Consideration of Establishing New City Sewer Rates SOURCE: Public Works
COMMENT: At its meeting on September 19, 2023, the City Council approved setting of a Public Hearing for November 21, 2023, to conduct a protest hearing and consider a Sewer Rate increase. In accordance with Proposition 218 legal requirements, the City must provide, at minimum, a 45-day notice for a protest hearing on proposed fee increases. To comply with Proposition 218 legal requirements, the City mailed the record owner of the property subject to the proposed rates or the tenant directly liable for the payment of sewer service fees a Notice of Public Hearing on September 29, 2023. On October 6, 2023, an amended Notice of Public Hearing was mailed which included the 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the effective date or the date of adoption, whichever is later.

Written protests may be submitted by mail to the City Clerk, City of Porterville, 291 North Main Street, Porterville, CA 93257, or in person at the Public Hearing, as long as they are received prior to the conclusion of public testimony at the Public Hearing. Please identify on the front of the envelope "Sewer Rate Protest" for any protest, whether mailed or submitted in person to the City Clerk. Protests submitted verbally, or by e-mail, facsimile, or other electronic means will not be accepted.

Each protest must (1) be in writing; (2) state opposition to the proposed sewer rate increase; (3) provide the location of the owner's identified parcel (by assessor's parcel number or street address); and (4) include the original signature of the property owner or customer of record submitting the protest.

Only one written protest per parcel will be counted.

Item No.

14. At the conclusion of the Public Hearing, the City Council will consider adopting the proposed sewer rate increases, which are outlined on the reverse side of the notice. If, at the close of the Public Hearing, written protests against the proposed sewer rate increases are submitted by a majority of record owners of affected parcels and customers of record (50% plus one), the City will not approve the proposed sewer rates. If, at the close of the Public Hearing, written protests against the proposed sewer rate increases do not present a majority of record owners of affected parcels and customers of record, the City Council will be authorized to impose rate increases up to the amounts proposed. If adopted, new sewer rates will be effective January 1, 2024." Pursuant to California Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the date of adoption."
Carollo Engineers completed a Sewer Rate Study in May 2023. The Sewer Rate Study's objective was to ensure that sewer revenues cover the cost of services, meet the debt coverage and reserve requirements, and provide revenue for capital improvements to the City's sanitary sewer system. In the Sewer Rate Study, Carollo Engineers projected a substantial revenue shortfall as revenue under existing rates is insufficient. To address the revenue shortfall, a rate increase is required to: (1) adequately cover operating and capital costs, debt payments, and debt service coverage; (2) adequately fund the sewer system so it can be operated safely and provide residents and businesses with clean, safe and reliable sewer service; (3) provide timely maintenance of existing facilities; and (4) upgrade the City's wastewater treatment facility to meet Title 22 disinfected tertiary recycled water standard to comply with sustainability efforts.

During the Council's Study Session on August 29, 2023, staff and Carollo Engineers presented the Sewer Rate Study, outlining the three alternative sewer rate increases, which provide adequate revenue to address annual debt service coverage issues and provide the City with the financial capacity to address future operation and capital costs. The proposed sewer rates include two classes: (1) Residential Customer Class and (2) Non-Residential Customer Class, with a variable water consumption-based usage charge.

The Council's preferred alternative was Alternative 3, Residential Consolidation Sewer Rates. Under this alternative, single-family, multi-family, and trailer parks fall under the Residential Customer Class and represent a consolidation of sewer rates with a uniform monthly rate for all residential customers. Under the consolidated residential rate increase, a single-family bill would increase from $26.87 to $29.55 and a typical multi-family/ trailer park bill would increase from $25.52 to $29.55 on January 1, 2024. The consolidated residential rates will increase on July 1, 2024 to $39.10; on July 1, 2025 to $42.40; on July 1, 2026 to $46.00 and on July 1, 2027 to $49.90, after which time no further automatic adjustments would take place without a new notice and hearing pursuant to Proposition 218.

Item No.

14. The Non-Residential Customer Class represents all non-residential customers and is based on variable water consumption and concentration. The variable sewer use charge is the rate the City charges per unit of water consumption (one unit of water equates to 748 gallons or 100 cubic feet). The variable charge will be different from one bill to another, depending on customer class and water consumption.

RECOMMENDATION: That the City Council:

1. Conduct a Public Hearing to consider the adoption of increases to the rates for sewer service;

2. Receive any additional written protests;

3. Direct the City Clerk to tally the protests and report the total; and

4. Consider approval of the attached draft Resolution, if the tally does not exceed a majority protest as determined by the City Clerk.

ATTACHMENTS: 1. Draft Resolution

2. Proposition 218 Notice of Public Hearing On Proposed Increases To Sewer Rates

3. Sewer Utility Rate Study
Appropriated/Funded:

Review By:

Department Director:

Michael Knight, Public Works Director
Final Approver: John Lollis, City Manager

Page 1 of 2 ends

RESOLUTION NO. ___-2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE

CONCERNING INCREASING SEWER RATES THROUGH AND INCLUDING FISCAL YEARS 2023/2004 THROUGH 2027/2028
WHEREAS: The City of Porterville, through Municipal Code Chapter 25, is empowered to provide Residential, Commercial and Industrial customers with Sewer collection and wastewater treatment services; and
WHEREAS: By Chapter 25, the City Council of the City of Porterville may establish rates necessary to operate said Sewer collection and treatment services. The charges by the City for its Sewer collection and treatment are to be collected monthly by the finance department for the use and benefit of the City and shall be fixed by resolution of the City Council; and WHEREAS, the City performed a Sewer Rate Study completed by Carollo Engineers in 2023. The “Study” determined that current Sewer rates are insufficient to support current and future operations. Carollo Engineers recommended adopting a rate structure modification as well as a plan of annual rate adjustments for Fiscal Year (“FY”) 2023/2024 through FY 2026/2027 that are sufficient for the immediate and future operating needs of the Sewer collection and wastewater treatment system; and
WHEREAS, the Study demonstrates a need to increase the Sewer rates as follows:

RESIDENTIAL RATES EXISTING RATES 2023/24 2024/25 2025/26 2026/27 2027/28 Single Family Resiential - per unit $26.87 $29.55 $39.10 $42.40 $46.00 $49.90 Multi Family Residential-per unit $25.52 $29.95 $39.10 $42.40 $46.00 $49.90 Trailer Park - per space $25.52 $29.55 $39.10 $42.40 $46.00 $49.90

COMMERCIAL RATES
per hcf EXISTING RATES 2023/24 2024/25 2025/26 2026/27 2027/28 Car Wash, Laundry, Packing House $0.96 $2.66 $3.52 $3.82 $4.14 $4.50 Bars, Hotels w/o Dining $1.22 $3.43 $4.54 $4.93 $5.34 $5.80 Stores, Offices, Markets $1.04 $2.90 $3.83 $4.16 $4.51 $4.90 Hospital, Rest Homes $1.09 $3.08 $4.07 $4.42 $4.80 $5.20 Multi-units with Cons $1.19 $3.37 $4.46 $4.84 $5.25 $5.70 Mortuaries $1.95 $9.81 $13.00 $14.10 $15.30 $16.60
Service Stations and Auto Repairs $1.36 $3.80 $5.04 $5.47 $5.93 $6.43 Restaurants $2.97 $8.63 $11.44 $12.41 $13.46 $14.61
Churches $0.42 $2.90 $3.83 $4.16 $4.51 $4.90
Schools $0.30 $2.51 $3.32 $3.60 $3.91 $4.24
City of Porterville $0.83 $2.90 $3.83 $4.16 $4.51 $4.90 State Hospital $1.09 $3.08 $4.07 $4.42 $4.80 $5.20
Industrial - per hcf $0.93 $2.60 $3.44 $3.74 $4.05 $4.40 Septic Tanks - per 1,000 gallons $22.70 $130.50 $172.90 $187.60 $203.55 $220.85

PROPOSED RATE INCREASE

PROPOSED RATE INCREASE
Resolution No. ___-2023

Page 2 of 2 ends

NOW, THEREFORE, BE IT RESOLVED: That the City Council of the City of Porterville does hereby approve an increase in sewer rates as proposed. The following rates shall be implemented as the rates of sewer pursuant to Chapter 25–15 for all Sewer bills generated after January 1, 2024.

PASSED, APPROVED AND ADOPTED this 21st day of November, 2023. ____________________________________
Martha Flores, Mayor
ATTEST:

John D. Lollis, City Clerk
By: __________________________________
Patrice Hildreth, Chief Deputy City Clerk
*** Modificado el 2 de octubre de 2023 ***Amended October 2, 2023 SUS DERECHOS: Si usted es el propietario del registro de una propiedad sujeta a las tarifas propuestas o un inquilino directamente responsable por el pago de los cargos por servicio de drenaje sanitario (es decir, un cliente de registro), puede presentar una protesta por escrito en contra de los cambios propuestos en las tarifas. Sólo una protesta escrita por parcela será contada. Protestas escritas pueden ser enviadas por correo al secretario municipal de la ciudad de Porterville, ubicado en 291 N. Main Street, Porterville, CA 93257, o en persona en la audiencia pública, siempre y cuando se hayan recibido antes de la conclusión del testimonio público en la audiencia pública. Por favor identifique en el frente del sobre "Sewer Rate Protest" por cualquier protesta, ya sea por correo o entregarse personalmente al secretario municipal. Las protestas presentadas verbalmente, o por correo electrónico, fax o cualquier otro medio electrónico no serán aceptadas. Para obtener más información acerca de este aviso, por favor llame a la ciudad al (559) 782-7514. De conformidad con la sección 53759 del Código de Gobierno de California, existe un plazo de prescripción de 120 días para impugnar cualquier tarifa o cargo nuevo, aumentado o ampliado a partir de la fecha de adopción.

PROPOSICIÓN 218 AVISO DE AUDIENCIA PÚBLICA SOBRE AUMENTOS PROPUESTOS EN TARIFAS

DE DRENAJE SANITARIO
SE NOTIFICA que la ciudad de Porterville llevará acabo una audiencia pública el 21 de noviembre de 2023 a las 6:30 pm en la cámara del consejo municipal, ubicada en 291 North Main Street, Porterville, CA 93257, para considerar la adopción de los aumentos a las tarifas de sus cargos por servicio de drenaje sanitario. El propósito de la audiencia pública es para tomar los comentarios escritos y orales y considerar todas las reclamaciones por escrito en contra de los aumentos de tarifas propuestos. Las reclamaciones por escrito deben ser presentadas con el secretario municipal de la ciudad de Porterville.

YOUR RIGHTS: If you are the record owner of a property subject to the proposed rates or a tenant directly liable for the payment of sewer service fees (i.e., a customer of record), you may submit a written protest against the proposed rate changes. Only one written protest per parcel will be counted. Written protests may be submitted by mail to the City Clerk, City of Porterville, 291 North Main Street, Porterville, CA 93257, or in person at the public hearing, so long as they are received prior to the conclusion of public testimony at the public hearing. Please identify on the front of the envelope “Sewer Rate Protest” for any protest, whether mailed or submitted in person to the City Clerk. Protests submitted verbally, or by email, facsimile, or other electronic means will not be accepted.

Each protest must (1) be in writing; (2) state opposition to the proposed sewer rate increase; (3) provide the location of the owner’s identified parcel (by assessor’s parcel number or street address); and (4) include the original signature of the property owner or customer of record submitting the protest. Only one written protest per parcel will be counted.

At the conclusion of the public hearing, the City Council will consider adopting the proposed rate increases, which are outlined on the reverse side of this notice. If, at the close of the public hearing, written protests against the proposed sewer rate increases are submitted by a majority of record owners of affected parcels and customers of record (50% plus one), the City Council will not approve the proposed sewer rates. If, at the close of the public hearing, written protests against the proposed rate increases do not present a majority of record owners of affected parcels and customers of record, the City Council will be authorized to impose rate increases up to the amounts proposed. If adopted, new sewer rates will be effective January 1, 2024. Pursuant to California Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the date of adoption.

THE NEED FOR SEWER RATE INCREASES: The City makes every effort to provide its customers with sewer service in the most efficient and cost-effective manner possible. The City continuously evaluates operational costs and utilization of the assets it holds, it must also keep pace with inflation, maintain and upgrade aging infrastructure, and other cost increases.

Due to the lack of a rate increase in the past 17 years the City’s Field Services /Sewer Division is projecting a substantial revenue shortfall as revenue under existing rates is insufficient. To address the revenue shortfall a rate increase is required to: (1) adequately cover operating and capital costs, debt payments, and debt service coverage; (2) adequately fund the sewer system so it can be operated safely and provide residents and businesses with clean, safe and reliable sewer service; (3) provide timely maintenance of existing facilities; and (4) upgrade the City's wastewater treatment facility to meet Title 22 disinfected tertiary recycled water standards to comply with sustainability efforts.

PROPOSED ANNUAL RATE INCREASES & BILL IMPACT: The proposed sewer rates include two classes: (1) Residential Customer Class and (2) Non-Residential Customer Class, a variable water consumption-based usage charge.

The Residential Customer Class represents a consolidation of sewer rates with a uniform rate for all residential customers.

Under the consolidated residential rate increase a single-family bill would increase from $26.87 to $29.55 and a typical Multi-family/Trailer Park bill would increase from $25.52 to $29.55 on January 1, 2024. The consolidated residential rates will increase on July 1, 2024 to $39.10; on July 1, 2025 to $42.40; on July 1, 2026 to $46.00 and on July 1, 2027 to $49.90, after which time no further automatic adjustments would take place absent of a new notice and hearing pursuant to Proposition 218.

The Non-Residential Customer Class represents all non-residential customers and is based on variable water usage. The variable sewer use charge is the rate the City charges per unit of water consumption (one unit of water equals 748 gallons or 100 cubic feet). The variable charge will be different from one bill to another, depending on customer class and on water consumption. The proposed rate increase for each class and service are as follows:

PROPOSITION 218 NOTICE OF PUBLIC HEARING ON PROPOSED INCREASES TO SEWER RATES NOTICE IS HEREBY GIVEN that the City of Porterville will hold a Public Hearing on November 21, 2023, at 6:30 pm in the City Council Chambers, located at 291 North Main Street, Porterville, CA 93257, to consider the adoption of increases to the rates for its sewer service fees. The purpose of the public hearing is to take written and oral comments and consider all written protests against the proposed rate increases. Written protests must be filed with the City of Porterville City Clerk.

PROPOSED RATE INCREASE

PROPOSED RATE INCREASE
City of Porterville
Sewer Utility Rate Study
FINAL | December 2022
SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
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Contents

1.0 Introduction 1

1.1 City of Porterville Service Area Overview 1

1.2 Study Background 1

1.2.1 Purpose and Key Drivers 1

1.3 Rate Development Process Overview 2

1.3.1 Step-By-Step Rate Development Approach 2

2.0 Revenue Requirements Analysis 4

2.1 Revenue Requirements Prior to Rate Increases 4

2.1.1 Expenditures 4

2.1.2 Revenues 5

2.2 Cash Flow Test 6

2.3 Debt Service Coverage Test 6

2.3.1 Capital Planning and Reserves 6

2.4 Revenue Requirements with Recommended Rate Increase 8

3.0 Cost of Service 9

3.1 Functional Cost Allocation 9

3.2 Customer Class Allocation 10

4.0 Rate Design Analysis 13

4.1 Alternative 1: Existing Sewer Rate Structure 13

4.1.1 Residential Sewer Rates 13

4.1.2 Non-Residential Sewer Rates 13

4.2 Alternative 2: Cost of Service-Based Sewer Rates 14

4.3 Alternative 3: Residential Consolidation-Based Sewer Rates 15

5.0 Customer Bill Impacts 17

5.1 Single Family Residential 17

5.2 Multi- Family Residential and Trailer Parks 19

5.3 Commercial 21

6.0 Findings and Recommendations 22

6.1 Revenue Requirements 22

6.2 Alternative 2 – Cost of Service Based Sewer Rates 22 SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
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Appendices
Appendix A Revenue Requirements, Cost of Service Analysis, & Rate Design Schedules Tables
Table 1 Operating Expenditure Forecast ($ thousands) 4
Table 2 Non-Operating Expenditure Forecast ($ thousands) 5 Table 3 Capital Expenditure Forecast ($ thousands) 5
Table 4 Revenue Forecast Prior to Rates and Fees Increase ($ thousands) 5 Table 5 Cash Flow Test Prior to Rates and Fees Increase ($ thousands) 6 Table 6 Debt Coverage Test Prior to Rates and Fees Increase ($ thousands) 6 Table 7 Sewer Operating Fund Revenue Forecast Prior to Rates and Fees Increase ($ thousands) 7 Table 8 WWTFR Revenue Forecast Prior to Rates and Fees Increase ($ thousands) 7 Table 9 SRF Revenue Forecast Prior to Rates and Fees Increase ($ thousands) 7 Table 10 Reserves Target Test ($ thousands) 8
Table 11 Cash Flow with Recommended Revenue ($ thousands) 8 Table 12 Cost Allocation Percentage Bases 9
Table 13 Cost Allocation Results ($ thousands) 10
Table 14 Functional Cost Allocations throughout the Rate-Setting Period ($ thousands) 10 Table 15 Accounts, Flow, BOD, and TSS by Class 11
Table 16 Total Cost Allocation by Class for FY 2024 Test Year 12 Table 17 Alternative 1 – Existing and Proposed Residential Sewer Rates 13 Table 18 Alternative 1 – Existing and Proposed Non-Residential Sewer Rates 14 Table 19 Alternative 2 – Existing and Proposed Residential Sewer Rates 14 Table 20 Alternative 2 – Existing and Proposed Non-Residential Sewer Rates – per HCF 15 Table 21 Alternative 3 – Existing and Proposed Residential Sewer Rates 15 Table 22 Alternative 3 – Existing and Proposed Non-Residential Sewer Rates 16 SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
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Figures
Figure 1 Overview of Rate-Setting Process 2
Figure 2 Alternative 1 Single Family Residential Monthly Bill 17 Figure 3 Alternative 2 Single Family Residential Monthly Bill 17 Figure 4 Alternative 3 Single Family Residential Monthly Bill 18 Figure 5 Single Family Residential Monthly Bill Comparison 18 Figure 6 Alternative 1 Multifamily and Trailer Park Monthly Bill 19 Figure 7 Alternative 2 Multifamily and Trailer Park Monthly Bill 19 Figure 8 Alternative 3 Multifamily and Trailer Park Monthly Bill 20 Figure 9 Multifamily and Trailer Park Monthly Bill Comparison 20 Figure 10 Commercial Restaurant Monthly Sewer Bill (Assumes 15 HCF) 21 SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
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Abbreviations
BOD biological oxygen demand
Carollo Carollo Engineers, Inc.

CIP Capital Improvement Program
City City of Porterville
FYE fiscal year ending
HCF hundred cubic feet
lbs/day pounds per day
MG million gallons
mg/L milligrams per liter
mgd million gallons per day
O&M Operations and Maintenance
RCNLD Replacement Cost New Less Depreciation
SRF Sewer Revolving Fund
Study 2022 Sewer Utility Rate Study
TSS Total Suspended Solids
WEF Water Environment Federation
WWTF Wastewater Treatment Facility
WWTFR Wastewater Treatment Facility Capital Fund
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1.0 Introduction

1.1 City of Porterville Service Area Overview
The City of Porterville (City) provides wastewater services for all residential, commercial, and industrial discharges within the city. East Porterville’s sanitary sewer service is managed by the Porter Vista Public Utilities District but treated at the City’s wastewater treatment facility (WWTF). The City owns and maintains approximately 2,278 manholes, 24 lift stations, 9,980 feet of force mains, and over 48 miles of gravity sewer pipes to receive, treat, and dispose of approximately 4.69 million gallons per day (mgd) of wastewater. The WWTF has significantly expanded its capacity over time with an original capacity of

1.8 mgd in 1954 to its current capacity, since 1994, of 8.0 mgd. However, a discharge order restricts the monthly average daily discharge to 5.3 mgd. Treated effluent is pumped through a 4.5-mile pipeline to the southwest area of town where it is applied to effluent irrigation areas or percolated into the ground via percolation basins during winter months.

1.2 Study Background

1.2.1 Purpose and Key Drivers
The City retained Carollo Engineers, Inc., (Carollo), an independent rate consultant, to conduct a Sewer Utility Rate Study (Study) for the City’s sewer rates for residential, commercial, industrial, and septic waste haulers. This Study is driven largely by the need for an updated analysis with sewer rates based on currently relevant assumptions, allocations, revenues, expenses, and capital improvements. The City’s last sewer utility rate study was conducted in 2003 with the intent of establishing and implementing rates that would sufficiently recover annual wastewater operations for the first time, as the City was drawing down its operating and capital fund reserves and introduced a new structure that provided improved rate equity among customer classes. The analysis resulted in recommending significant rate increases, phased in over a three-year period, including a 30-year debt financing plan which the City is currently repaying.

Significant upcoming capital costs are also driving the reason for this Study. The sewer infrastructure and WWTF capital improvement programs (CIP) will incur much of its costs earlier in the study period (FY 2024 and FY 2025), while the lift station upgrade and digester improvements are notable exceptions that will remain annual expenses throughout the study period (FY 2031). For purposes of this Study, the City has identified capital projects totaling nearly $123 million over the duration of the study period (FY 2021 to FY 2031), which will be recovered through a combination of proceeds from previous debt issuances, developer fees, and rates/cash reserves. While the City is not planning to finance these projects with additional debt issuances, it does have existing debt obligations that will continue to be paid through FY 2049. Lastly, the City was aware of local septic haulers becoming a larger portion of their flows and strengths due to the City’s significantly lower rate charged per thousand gallons when compared to that of neighboring utilities.

Therefore, the City sought to appropriately increase their septic rates to those more in alignment and commensurate with the actual costs the City incurs to treat their flows and strengths.

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1.3 Rate Development Process Overview

1.3.1 Step-By-Step Rate Development Approach
Carollo used an industry standard step-by-step
approach when reviewing the City’s sewer rates.

This approach is consistent with industry standards
established within the Water Environment
Federation’s (WEF) Manual of Practice No. 27
Financing and Charges for Wastewater Systems.

This step-by-step approach is summarized and
outlined in Figure 1.

1.3.1.1 Revenue Requirements Overview
The revenue requirements analysis tests the
utility’s fiscal health. It compares the City’s
forecasted revenues to its forecasted operations
and maintenance (O&M) expenses, capital
improvement costs, debt service, and reserve
policies to determine the adequacy of the existing
rates to recover costs. If the City falls short of any
of these benchmarks, then rate revenue likely
needs adjustments.

Cash Flow Test
Carollo compiled the City's FY 2021 expenses
(budgeted) as the base year for O&M expenses.

Carollo also collected information related to current cash and restricted/unrestricted fund balances and internal and external policies, and all other future operating and non-operating revenues and expenditures.

With these cost drivers established, a cash flow sufficiency test is typically used to define the annual revenues necessary in the event net cash flow at the end of each FY is negative.

Debt Coverage Test
Debt coverage is the amount of annual revenue, in excess of annual operating expenses and annual debt service, that the City must generate. This is represented as a percentage of the annual debt service and is typically outlined in the official statement for each debt issuance. The City’s current annual debt coverage ratio minimum is 125 percent of annual debt service.

Reserve Funds Test
The reserve funds test reviews end of fiscal year reserve balances compared with City reserve policies. This analysis reviewed the projected reserve balances at the end of the fiscal year compared with these policy targets.

1.3.1.2 Cost of Service Overview
The goal of the cost of service evaluation is to identify an equitable and fair nexus between the costs incurred by the City and the rates assessed to each customer.

Carollo reviewed historical customer billing data to confirm the number of units connected to the system, cost drivers, and cost allocations. Carollo then identified how fixed costs versus variable costs align to functional categories.

Revenue Requirement Analysis
City budget and funding goals outline the
needed rate revenue.

Cost of Service Analysis
Revenue Requirements are assigned to
functional categories on a linebyline basis.

Functional Costs are allocated to cost
components based on engineering standards.

Cost Categories are furhter allocated to each
customer class based on demand profiles.

Rate Design Analysis
The results of the customer class allocation
form the basis of the rate design.

Figure 1 Overview of Rate-Setting Process
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For the City, costs are primarily related to flow in million gallons (MG) and discharge/strength characteristics such as biological oxygen demand (BOD) and total suspended solids (TSS). The cost of service analysis takes the projected revenues from the previous step and allocates them to flow, BOD, TSS, and customer service functions based on the baseline system profile. These functionalized costs are allocated to each customer class in accordance with system flows and discharge/strength characteristics.

1.3.1.3 Rate Design Analysis
The Rate Design Analysis ties together the preceding steps into a final rate charged to each customer class.

The rates calculated in this step incorporate the projected revenue requirements and the cost of service allocations into a fair and equitable cost recovery mechanism.

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2.0 Revenue Requirements Analysis
The revenue requirements analysis has two main purposes – it serves as a means of evaluating each cost center’s fiscal health and adequacy of current rate levels; and it sets the basis for near- and long-term rate planning.

There are three tests utilized to define the recommended annual revenues necessary:
• Cash Flow Sufficiency Test – The cash flow test defines the amount of annual revenues that must be generated to meet annual expenditure obligations of the utility. • Debt Service Coverage Test – Debt service coverage refers to the collection of revenues to meet all operating expenses and debt service obligations plus an additional multiple of that debt service. The City has a legally required minimum debt service coverage ratio of 1.25x which was used as the basis for this financial analysis. While a higher debt service coverage ratio can be more prudent and signal creditworthiness, it would likely be infeasible to incorporate an unnecessarily high ratio during other significant rate adjustment requirements. • Reserve Test – End of year reserve balances for each of the City’s unrestricted reserve(s) should meet minimum target balances.

If revenues fail only one of these tests, then that respective shortfall sets the revenue increase. If multiple tests are failed, the greatest shortfall defines the required revenue increase.

Data was provided by City staff based on current projections for operating and non-operating expenditures, CIP, debt service, as well as baseline revenues. The City also provided baseline reserve balances and restricted fund targets.

2.1 Revenue Requirements Prior to Rate Increases

2.1.1 Expenditures
Table 1 and Table 2 summarize the City’s operating and non-operating expenditures forecasted during the rate-setting period (FY 2024 to FY 2028), respectively. Table 3 summarizes the City’s capital expenditures.

Operating expenses are escalated by 3.0 percent annually while capital costs were provided by City staff and represent escalated dollars for their respective years.

Table 1 Operating Expenditure Forecast ($ thousands)
Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Sewer Operating System $1,496 $1,541 $1,587 $1,635 $1,684 Water Conservation Plant 3,305 3,405 3,507 3,612 3,720
Industrial Pre-Treatment 162 166 171 176 182
Laboratory 521 537 553 570 587
Stormwater O&M 281 290 298 307 317
Total Operating Expenses $5,765 $5,938 $6,116 $6,300 $6,489 Note:
(1) Totals may not tie due to rounding.

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Table 2 Non-Operating Expenditure Forecast ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Interfund Transfers $600 $600 $600 $600 $600
Debt Service 4,592 7,000 6,999 6,997 7,000
Rate Funded Capital (PAYGO) - - 1,460 2,772 1,329
Total Non-Operating
Expenses $5,192 $7,600 $9,059 $10,370 $8,929
Note:
(1) Totals may not tie due to rounding.

Table 3 Capital Expenditure Forecast ($ thousands)
Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Sewer Replacement $85 $- $- $- $-
Island Annexation 3,050 2,580 2,420 – –
Other Sewer Infrastructure 80 174 230 88 91
WWTF 32,187 31,090 1,093 1,596 99
Master Plans 207 214 221 229 237
Stormwater 1,545 1,591 1,639 1,688 1,739
Total Capital Expenses $37,154 $35,649 $5,603 $3,601 $2,166 Note:
(1) Totals may not tie due to rounding.

2.1.2 Revenues
Table 4 summarizes the City’s forecasted revenues during the rate-setting period assuming no revenue increases to Charges for Service.

Table 4 Revenue Forecast Prior to Rates and Fees Increase ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Charges for Services:

Sewer Service Charges $7,167 $7,167 $7,167 $7,167 $7,167 Porter Vista Revenue Offset 200 200 200 200 200
Other Revenues:

Property Tax Assessments 187 188 189 190 191
Interest on Investments 41 42 42 42 43
Rent of Land – Agricultural 123 127 131 134 138
Sewer Dumping Charges 51 51 51 52 52
Lab Service Charges 381 383 384 386 388
Other Service Charges 5 5 5 5 5
Penalties 82 84 87 90 92
Other Revenues 5 6 6 6 6
Revenues Pre-Increase $8,242 $8,252 $8,262 $8,272 $8,283 Note:
(1) Totals may not tie due to rounding.

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2.2 Cash Flow Test
Table 5 summarizes the City’s forecasted revenues during the rate-setting period, assuming no revenue increases. The City is projected to have a cash flow deficit beginning in FY 2024.

Table 5 Cash Flow Test Prior to Rates and Fees Increase ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Total Revenues $8,242 $8,252 $8,262 $8,272 $8,283
Total Operating Expenses 5,765 5,938 6,116 6,300 6,489
Debt Service 4,592 7,000 6,999 6,997 7,000
Interfund Transfers 600 600 600 600 600
Rate Funded Capital (PAYGO) – – 1,460 2,772 1,329
Total Policy Expenditures 234 597 360 652 1,237
Cash Flow Pre-Increase $(2,949) $(5,883) $(7,273) $(9,049) $(8,372) Note:
(1) Totals may not tie due to rounding.

2.3 Debt Service Coverage Test
Table 6 summarizes the debt service coverage test forecast for the rate-setting period. Debt service coverage is calculated as the ratio of the City’s net income to its annual debt service. Without rate increases, the City is projected to fall below its required debt service coverage ratio of 125 percent (1.25x) in FY 2024 and beyond.

Table 6 Debt Coverage Test Prior to Rates and Fees Increase ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Total Revenues $8,242 $8,252 $8,262 $8,272 $8,283
Sewer Expenses 5,765 5,938 6,116 6,300 6,489
Debt Service 4,592 7,000 6,999 6,997 7,000
Debt Coverage (1.25x) 1,148 1,750 1,750 1,749 1,750
Coverage Ratio Pre-Increase 0.54x 0.33x 0.31x 0.28x 0.26x Note:
(1) Totals may not tie due to rounding.

2.3.1 Capital Planning and Reserves
The projected reserve balances for the Sewer Operating Fund, Wastewater Treatment Facility Capital Fund (WWTFR), and Sewer Revolving Fund (SRF) are presented in Table 7 through Table 9, respectively.

Beginning reserve fund balances for FY 2024 and current targets were provided by City staff. The City is projected to meet its reserve policy targets in 2028, as shown in Table 10.

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Table 7 Sewer Operating Fund Revenue Forecast Prior to Rates and Fees Increase ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Beginning Balance $1,188 $867 $1,148 $901 $363
Addition to Meet Min. Balance 234 597 360 652 1,237
Cash Flows (555) (316) (607) (1,190) 782
Ending Balance Prior to
Transfers
867 1,148 901 363 2,381
Transfers From/(To) WWTFR – – – – (102)
Ending Balance $867 $1,148 $901 $363 $2,279
Minimum Target $1,422 $1,464 $1,508 $1,553 $1,600
Notes:
(1) Totals may not tie due to rounding.
(2) City’s minimum reserve balance is 90 days of operating expenses.

Table 8 WWTFR Revenue Forecast Prior to Rates and Fees Increase ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Beginning Balance $728 $1,884 $1,629 $728 $728
Transfer from Sewer Operating
Fund
300 300 300 300 300
Less: Use of Funds (300) (1,457) (1,202) (300) (300)
Ending Balance Prior to
Transfers
1,884 1,629 728 728 728
Transfers From/(To) Operating – – – – 102
Ending Balance $1,884 $1,629 $728 $728 $830
Minimum Target $428 $428 $428 $428 $428
Notes:
(1) Totals may not tie due to rounding.
(2) City’s minimum reserve balance is 1.0% of replacement cost new less depreciation (RCNLD).

Table 9 SRF Revenue Forecast Prior to Rates and Fees Increase ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Beginning Balance $4,254 $1,800 $1,800 $1,800 $1,800
Transfer from Sewer Operating
Fund
300 300 300 300 300
Less: Use of Funds (2,754) (300) (300) (300) (300)
Ending Balance Prior to
Transfers
1,800 1,800 1,800 1,800 1,800
Transfers From/(To) WWTFR – – – – 94
Ending Balance $1,800 $1,800 $1,800 $1,800 $1,894
Minimum Target $1,500 $1,500 $1,500 $1,500 $1,500
Notes:
(1) Totals may not tie due to rounding.
(2) City’s minimum reserve balance is 90 days of operating expenses.

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Table 10 Reserves Target Test ($ thousands)
Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Ending Operating Fund Balance $867 $1,148 $901 $363 $2,279 Days of O&M Expenditures 55 days 71 days 54 days 22 days 129 days Operating Revenue Balance
Above/(Under) Target $(555) $(316) $(607) $(1,190) $679

2.4 Revenue Requirements with Recommended Rate Increase Based on the projected deficits in the debt service coverage test presented in Table 6, Carollo recommends annual revenue increases of 32.5 percent from FY 2024 to FY 2025 and 8.5 percent annual revenue increases from FY 2026 to FY 2028. 3.0 percent annual revenue increases are recommended throughout the remainder of the study period. The revenue plan shown in Table 11 is projected to generate sufficient revenues to meet all three financial tests and provide adequate financial capacity for unexpected future cashflow events.

Table 11 Cash Flow with Recommended Revenue ($ thousands) Description FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Revenue Increase 32.5% 32.5% 8.5% 8.5% 8.5%
Baseline Rate Revenue 7,367 7,367 7,367 7,367 7,367
Revenue from Increase 2,394 5,567 6,666 7,859 9,153
Non-Operating Revenue 875 885 895 905 916
Less: Rate Increase Delay – – – – –
Less: Expenditures (11,191) (14,135) (15,535) (17,322) (16,655) Cash Flow After Increases $(555) $(316) $(607) $(1,190) $782 SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
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3.0 Cost of Service
The cost-of-service portion of the rate analysis creates an equitable and fair basis for collecting rates from each customer class. This analysis initially allocates costs to functional categories based on how the City’s system is designed and operated. These functional category costs are then allocated to each customer class based on how they use the system, as measured by the units for each functional category. For instance, customer classes with higher overall flow will be assigned a greater share of costs incurred to convey and treat that volume of flow. Classes with higher BOD or TSS concentrations in their wastewater discharge will be allocated a greater share of costs to handle and treat these constituents.

The functional cost allocation takes these projected revenue requirements and allocates them to individual functional costs related to the City’s collection, treatment, and administrative processes. Each of the City’s expenses are allocated based on the respective function it serves. In the City’s case, these functions are flow, BOD, and TSS.

The customer class allocation takes these functional costs and further assigns them to each class based on their typical usage of the system. Classes that generate more flow or have more accounts are assigned a greater share of flow or customer service-related costs, respectively. Finally, rate design calculates a rate for each class based on the total allocated costs and the units for cost recovery.

3.1 Functional Cost Allocation
The City’s last rate study, completed in 2003, developed cost allocation factors to recover previously excluded operational costs. The approach used in that study is maintained here because the City’s cost driver categories are largely unchanged, however since the number of capital costs have increased significantly, the focus for this step was how to best allocate each to flow, BOD, and TSS.

Table 12 outlines the City’s three cost allocation categories. Given a lack of available information to determine otherwise and to keep the calculations straightforward and replicable, individual capital costs are allocated in full, half, or equally divided in thirds across the three functions. The total allocation split for capital costs is the quotient of the summed allocated cost divided by total capital cost. Existing debt service and fixed assets are both allocated in nearly equal thirds while O&M expenses are half allocated to flow with the remaining 50 percent split equally among both BOD and TSS. Similar to the capital cost calculation, the total functional allocation percentages are the quotient of the allocated amounts divided by the total estimated costs.

Table 12 Cost Allocation Percentage Bases
Allocation Items Flow BOD TSS
Operating Expenses 50.0% 25.0% 25.0%
Existing Debt Service 34.0% 33.0% 33.0%
Capital Costs 27.7% 36.2% 36.2%
Fixed Assets 34.0% 33.0% 33.0%
Total 35.0% 32.5% 32.5%
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As shown in Table 12, the City’s total costs are almost evenly split between flow (35.0 percent), followed by BOD and TSS (both at 32.5 percent). The functional allocation uses the full study period (FY 2022 to FY 2031) rather than the five-year rate-setting period so that rates continue recovering these anticipated costs, regardless of the particular year in which they were incurred. Results of the cost allocation are shown in Table 13.

Table 13 Cost Allocation Results ($ thousands)
Expenditure Items Flow BOD TSS
Operating Expenses $31,148 $15,574 $15,574
Existing Debt Service 20,551 19,947 19,947
Capital Costs 32,467 42,398 42,398
Fixed Assets 5,982 5,806 5,806
Total $90,148 $83,725 $83,725
Annual revenue requirements, including their allocations by functional category for the duration of the rate-setting period, are shown in Table 14.

Table 14 Functional Cost Allocations throughout the Rate-Setting Period ($ thousands) Functional Categories Allocation FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Flow 35.0% $ 3,323 $ 4,404 $ 4,778 $ 5,184 $ 5,625
BOD 32.5% 3,087 4,090 4,437 4,815 5,224
TSS 32.5% 3,087 4,090 4,437 4,815 5,224
Total Revenue
Requirement $9,499 $12,585 $13,655 $14,815 $16,074

3.2 Customer Class Allocation
The annual allocated revenue requirements are allocated to each customer class based on the number of units of service that each customer class has for a particular category. That calculation starts by measuring the units of service for each class. The total number of accounts, annual flow, and annual BOD and TSS loadings are shown in Table 15. This table also shows the percent of the total for each class for each particular constituent.

City staff provided Carollo with customer billing data which included the number of accounts, dwelling units, and flow (mgd) for use in development of the cost-of-service analysis as well as development of revenue under existing rates. The cost-of-service analysis determines each class’s proportional contribution (through each of the three cost allocation categories; Flow, BOD, and TSS) based on billing data supplied by City staff.

Due to limited current class-specific strength data (milligrams per liter [mg/L] for BOD and TSS), Carollo maintained the existing assumed strengths used in the previous 2003 study. Those strengths are then converted into pounds per day (lbs/day) by multiplying each customer class’s flow by their respective strengths (mg/L) times 8.34 pounds per gallon. These resulting pounds, by customer class, are then divided by total contributed pounds to arrive at respective allocation percentages by customer class. The most notable change since the previous study is that flows from each customer class have markedly increased while septic waste haulers have significantly increased their flows and as a result their contaminant contributions.

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Table 15 Accounts, Flow, BOD, and TSS by Class
Customer Classes Accounts Dwelling
Units
Flow BOD TSS
mgd % mg/L lbs % mg/L lbs %
Residential
Single Family Residential 11,804 39,779 3.0153 57.3% 250 6,287 56.6% 175 4,401 49.1% Multi-Family Residential 656 7,675 1.0669 20.3% 250 2,224 20.0% 175 1,557 17.4% Trailer Park – Spaces 263 1,178 0.1638 3.1% 250 341 3.1% 175 239 2.7% Commercial
Car Wash, Laundry, Packing
House 23 0.0278 0.5% 100 23 0.2% 150 35 0.4%
Bars, Hotels w/o Dining 13 0.0164 0.3% 200 27 0.2% 200 27 0.3% Stores, Offices, Markets 695 0.6105 11.6% 150 764 6.9% 150 764 8.5% Hospital, Rest Homes 27 0.0202 0.4% 250 42 0.4% 100 17 0.2% Multi-Unit with Cons 4 0.0013 0.0% 250 3 0.0% 150 2 0.0% Mortuaries 2 0.0025 0.0% 800 17 0.2% 800 17 0.2%
Service Stations and
Auto Repairs 63 0.0695 1.3% 180 104 0.9% 280 162 1.8%
Restaurants 98 0.0834 1.6% 800 557 5.0% 600 417 4.7%
Churches 61 0.0746 1.4% 150 93 0.8% 150 93 1.0%
Schools 51 0.0518 1.0% 130 56 0.5% 100 43 0.5%
City of Porterville 23 0.0215 0.4% 150 27 0.2% 150 27 0.3% State Hospital 1 0.0013 0.0% 250 3 0.0% 100 1 0.0%
Industrial 15 0.0215 0.4% 150 27 0.2% 100 18 0.2%
Septic Tanks 7 0.0114 0.2% 0 512 4.6% 12,000 1,139 12.7% Totals 13,806 48,633 5.2597 11,108 8,959
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Each of the functional categories are allocated to each customer class by multiplying the annual revenue requirements for a FY 2024 test year in Table 14 by their respective allocation percentages in Table 15. This step is repeated for each of the three constituents (Flow, BOD, TSS) thereby determining each customer class’s respective FY 2024 Test Year revenue requirement, by constituent, in Table 16.

Table 16 Total Cost Allocation by Class for FY 2024 Test Year Customer Classes Flow BOD TSS Total Rev Req
Residential
Single Family Residential $1,905,248 $1,746,947 $1,516,201 $5,168,396 Multi-Family Residential 674,105 618,096 536,455 1,828,656 Trailer Park – Spaces 103,484 94,886 82,353 280,722
Commercial
Car Wash, Laundry, Packing House $17,572 $6,445 $11,986 $36,002 Bars, Hotels w/o Dining 10,383 7,616 9,443 27,443
Stores, Offices, Markets 385,775 212,234 263,144 861,153 Hospital, Rest Homes 12,779 11,718 5,811 30,308
Multi-Unit with Cons 799 732 545 2,076
Mortuaries 1,597 4,687 5,811 12,096
Service Stations and Auto Repairs 43,929 29,001 55,934 128,864 Restaurants 52,715 154,671 143,830 351,216
Churches 47,124 25,925 32,144 105,193
Schools 32,747 15,614 14,892 63,252
City of Porterville 13,578 7,470 9,262 30,310
State Hospital 799 732 363 1,894
Industrial 13,578 7,470 6,175 27,222
Septic Tanks 7,188 142,368 392,264 541,820
Total $3,323,400 $3,086,611 $3,086,611 $9,496,622
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4.0 Rate Design Analysis
The rate design analysis ties together the prior two steps (revenue requirement analysis and cost of service analysis) into fair and equitable rates assessed to each customer. The allocated costs shown in Table 16 outline the costs to be recovered from each customer class. Rate design then calculates an appropriate unit cost for each customer class. The City requested Carollo calculate rates under three rate structures. The first alternative maintains the existing rate structure, which charges multifamily residential and trailer park customers 95 percent of the single family residential rate. The second rate structure recovers class cost of service revenue requirements. The third alternative categorizes all residential customers as one residential customer class.

4.1 Alternative 1: Existing Sewer Rate Structure

4.1.1 Residential Sewer Rates
Residential (Single Family, Multifamily, and Trailer Park) customers are currently charged a flat monthly rate for wastewater services regardless of the amount of flows contributed to the WWTP. Alternative 1 maintains the existing rate structure and recovers the total residential class’s proportionate costs. Table 17 illustrates rates for each of the residential customer classes throughout the rate-setting period.

Table 17 Alternative 1 – Existing and Proposed Residential Sewer Rates Residential
Customer Classes
FYE 2023
(Existing) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 5-Year
Cumulative
Increase
Single Family
Residential –
Per Unit
$26.87 $30.20 $39.95 $43.35 $47.00 $51.00 89.8%
Multifamily
Residential –
Per Unit

25.52 28.69 37.96 41.18 44.65 48.45 89.9%
Trailer Park –
Per Space 25.52 28.69 37.96 41.18 44.65 48.45 89.9%

4.1.2 Non-Residential Sewer Rates
Non-Residential (Commercial, Industrial, and Septic Tank Haulers) customers are currently charged a volumetric rate that recovers their total cost of service. Non-Residential sewer rates are calculated by dividing the cost per customer class by the amount of respective flow. Existing and Alternative 1 Non-Residential rates, throughout the rate-setting period, are shown in Table 18.

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Table 18 Alternative 1 – Existing and Proposed Non-Residential Sewer Rates Non-Residential
Customer Classes
FYE 2023
(Existing) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 5-Year
Cumulative
Increase
Car Wash,
Laundry, Packing
House
$0.96 $2.66 $3.52 $3.82 $4.14 $4.50 368.8%
Bars, Hotels w/o
Dining 1.22 3.43 4.54 4.93 5.34 5.80 375.4%
Stores, Offices,
Markets 1.04 2.90 3.83 4.16 4.51 4.90 371.2%
Hospital, Rest
Homes 1.09 3.08 4.07 4.42 4.80 5.20 377.1%
Multi-Unit with
Cons. 1.19 3.37 4.46 4.84 5.25 5.70 379.0%
Mortuaries 1.95 9.81 13.00 14.10 15.30 16.60 751.3%
Service Stations
and Auto Repairs 1.36 3.80 5.04 5.47 5.93 6.43 372.8%
Restaurants 2.97 8.63 11.44 12.41 13.46 14.61 391.9%
Churches 0.42 2.90 3.83 4.16 4.51 4.90 1,066.7%
Schools 0.30 2.51 3.32 3.60 3.91 4.24 1,313.3%
City of Porterville 0.83 2.90 3.83 4.16 4.51 4.90 490.4% State Hospital 1.09 3.08 4.07 4.42 4.80 5.20 377.1%
Industrial – per hcf 0.93 2.60 3.44 3.74 4.05 4.40 373.1% Septic Tanks – per
1,000 gallons 22.70 130.50 172.90 187.60 203.55 220.85 872.9%

4.2 Alternative 2: Cost of Service-Based Sewer Rates
Alternative 2 of this Study represents cost of service-based sewer rates. These cost-based sewer rates align with California’s Proposition 218 guidelines. Alternative 2 existing and proposed Residential and Non-Residential rates are shown in Table 19 and Table 20, respectively. Please note that Non-Residential sewer rates under Alternative 2 remain constant with those rates presented under Alternative 1.

Table 19 Alternative 2 – Existing and Proposed Residential Sewer Rates Residential
Customer Classes
FYE 2023
(Existing) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 5-Year
Cumulative
Increase
Single Family
Residential $26.87 $36.50 $48.35 $52.50 $56.95 $61.80 130.0% Multifamily
Residential 25.52 19.90 26.35 28.55 31.00 33.65 31.9%
Trailer Park 25.52 19.90 26.35 28.55 31.00 33.65 31.9%
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Table 20 Alternative 2 – Existing and Proposed Non-Residential Sewer Rates – per HCF Non-Residential
Customer Classes
FYE 2023
(Existing) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 5-Year
Cumulative
Increase
Car Wash, Laundry,
Packing House $0.96 $2.66 $3.52 $3.82 $4.14 $4.50 368.8% Bars, Hotels w/o
Dining 1.22 3.43 4.54 4.93 5.34 5.80 375.4%
Stores, Offices,
Markets 1.04 2.90 3.83 4.16 4.51 4.90 371.2%
Hospital, Rest
Homes 1.09 3.08 4.07 4.42 4.80 5.20 377.1%
Multi-Unit with Cons. 1.19 3.37 4.46 4.84 5.25 5.70 379.0% Mortuaries 1.95 9.81 13.00 14.10 15.30 16.60 751.3%
Service Stations and
Auto Repairs 1.36 3.80 5.04 5.47 5.93 6.43 372.8%
Restaurants 2.97 8.63 11.44 12.41 13.46 14.61 391.9%
Churches 0.42 2.90 3.83 4.16 4.51 4.90 1,066.7%
Schools 0.30 2.51 3.32 3.60 3.91 4.24 1,313.3%
City of Porterville 0.83 2.90 3.83 4.16 4.51 4.90 490.4% State Hospital 1.09 3.08 4.07 4.42 4.80 5.20 377.1%
Industrial – per hcf 0.93 2.60 3.44 3.74 4.05 4.40 373.1% Septic Tanks – per
1,000 gallons 22.70 130.50 172.90 187.60 203.55 220.85 872.9%

4.3 Alternative 3: Residential Consolidation-Based Sewer Rates Alternative 3 of this Study represents sewer rates with a uniform residential rate. Alternative 3 existing and proposed Residential and Non-Residential rates are shown in Table 21 and Table 22, respectively. Please note that Non-Residential sewer rates under Alternative 3 remain constant with those sewer rates presented under Alternatives 1 and 2.

Table 21 Alternative 3 – Existing and Proposed Residential Sewer Rates Residential
Customer Classes
FYE 2023
(Existing) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 5-Year
Cumulative
Increase
Single Family
Residential $26.87 $29.55 $39.10 $42.40 $46.00 $49.90 85.7% Multifamily
Residential 25.52 29.55 39.10 42.40 46.00 49.90 95.5%
Trailer Park 25.52 29.55 39.10 42.40 46.00 49.90 95.5%
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Table 22 Alternative 3 – Existing and Proposed Non-Residential Sewer Rates Non-Residential –
per hcf
Customer Classes
FYE 2023
(Existing) FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 5-Year
Cumulative
Increase
Car Wash, Laundry,
Packing House $0.96 $2.66 $3.52 $3.82 $4.14 $4.50 368.8% Bars, Hotels w/o
Dining 1.22 3.43 4.54 4.93 5.34 5.80 375.4%
Stores, Offices,
Markets 1.04 2.90 3.83 4.16 4.51 4.90 371.2%
Hospital, Rest
Homes 1.09 3.08 4.07 4.42 4.80 5.20 377.1%
Multi-Unit with
Cons. 1.19 3.37 4.46 4.84 5.25 5.70 379.0%
Mortuaries 1.95 9.81 13.00 14.10 15.30 16.60 751.3%
Service Stations and
Auto Repairs 1.36 3.80 5.04 5.47 5.93 6.43 372.8%
Restaurants 2.97 8.63 11.44 12.41 13.46 14.61 391.9%
Churches 0.42 2.90 3.83 4.16 4.51 4.90 1,066.7%
Schools 0.30 2.51 3.32 3.60 3.91 4.24 1,313.3%
City of Porterville 0.83 2.90 3.83 4.16 4.51 4.90 490.4% State Hospital 1.09 3.08 4.07 4.42 4.80 5.20 377.1%
Industrial – per hcf 0.93 2.60 3.44 3.74 4.05 4.40 373.1% Septic Tanks – per
1,000 gallons 22.70 130.50 172.90 187.60 203.55 220.85 872.9% SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
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5.0 Customer Bill Impacts
The following graphs depict the monthly bill for each residential customer class under Alternatives 1, 2, and

3. Additionally, the monthly bill for restaurants is highlighted as an example under the commercial classes.

5.1 Single Family Residential
Figure 2 through Figure 4 illustrate the bill impact under each rate structure alternative for Single Family Residential customers. Both alternatives assess this charge on a per unit basis regardless of contributed flows. Figure 5 compares the single-family residential bill under each alternative.

Figure 2 Alternative 1 Single Family Residential Monthly Bill Figure 3 Alternative 2 Single Family Residential Monthly Bill SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
FINAL | MAY 2023 | 18
Figure 4 Alternative 3 Single Family Residential Monthly Bill Figure 5 Single Family Residential Monthly Bill Comparison $26.87
$29.55
$39.10
$42.40
$46.00
$49.90
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Exis�ng 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 ALTERNATIVE 3 - SFR MONTHLY SEWER BILL
SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
FINAL | MAY 2023 | 19

5.2 Multi- Family Residential and Trailer Parks
Figures 6 through Figure 8 illustrate bill impacts under each rate structure alternative for multifamily residential and trailer park customers.

Similar to single family residential, this charge is assessed on a per unit or per space basis, respectively, for multifamily residential and trailer park customers. Figure 9 compares the bill impacts under the three alternatives.

Figure 6 Alternative 1 Multifamily and Trailer Park Monthly Bill Figure 7 Alternative 2 Multifamily and Trailer Park Monthly Bill SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
FINAL | MAY 2023 | 20
Figure 8 Alternative 3 Multifamily and Trailer Park Monthly Bill Figure 9 Multifamily and Trailer Park Monthly Bill Comparison $25.52
$29.55
$39.10
$42.40
$46.00
$49.90
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Exis�ng 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 ALTERNATIVE 3 - MFR & TRAILER PARK MONTHLY SEWER BILL
$25.52
$28.69
$37.96
$41.18
$44.65
$48.45
$25.52
$19.90
$26.35 $28.55 $31.00
$33.65
$25.52
$29.55
$39.10
$42.40
$46.00
$49.90
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028

MFR & TRAILER PARK MONTHLY SEWER BILL
Alt. 1, 2, and 3
Alt 1 Monthly Bill Alt 2 Monthly Bill Alt. 3 Monthly Bill SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
FINAL | MAY 2023 | 21

5.3 Commercial
Strictly for illustration purposes, Carollo reviewed the bill impact based on a hypothetical commercial customer classified under “Restaurants” and assumed a monthly flow of 15 hundred cubic feet (HCF), as shown in Figure 10. Unlike residential customers, commercial class customers are billed volumetrically per HCF, with the sole exception of septic tank haulers who are assessed on a per thousand-gallon basis.

Figure 10 Commercial Restaurant Monthly Sewer Bill (Assumes 15 HCF) $44.55
$129.45
$171.60
$186.15
$201.90
$219.15
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028

COMMERCIAL RESTAURANT MONTHLY SEWER BILL
SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
FINAL | MAY 2023 | 22

6.0 Findings and Recommendations
Based on the data, assumptions, and approaches detailed in the previous sections, Carollo recommends the following:

6.1 Revenue Requirements
Revenue under existing rates is insufficient to cover operating and capital costs, debt payments, and debt service coverage throughout the study period (FY 2021 – FY 2031). As such, Carollo recommends the City increases wastewater rate revenue by 32.5 percent annually starting in FY 2024 and continuing through FY 2025, then reduce the rate revenue increase to 8.5 percent annually from FY 2026 through FY 2028, and lastly implement 3.0 percent annual rate revenue increases throughout the remainder of the study period (through FY 2031). These annual rate revenue increases will provide adequate revenue to address annual debt service coverage issues in the later years of the rate-setting period while also providing the City with future financial capacity to address unexpected operational and capital costs.

6.2 Alternative 2 – Cost of Service Based Sewer Rates
Carollo recommends the cost of service-based sewer rates presented under Alternative 2 for all customer classes as shown in Table 23 and Table 24. These rates ensure each customer class pays their fair and proportionate share of costs. These rates are supported by the cost-of-service analysis and further adhere to California State legal requirements, including Proposition 218.

SEWER UTILITY RATE STUDY | CITY OF PORTERVILLE
FINAL | MAY 2023
Appendix A

REVENUE REQUIREMENTS, COST OF SERVICE

ANALYSIS, & RATE DESIGN SCHEDULES
City of Porterville
2020 Sewer Rate Study
Assumptions
Escalator Constant Meter Size MEUs Months % of Revenue % of Sales Operations 3.0% 5/8" 1 July 100% 8.3%Labor 3.0% 3/4" 1.5 August 92% 8.3% Energy 3.0% 1" 2 September 83% 8.3%
Chemicals 3.0% 1.5" 4.5 October 75% 8.3%Construction / Capital 3.0% 2" 6.5 November 67% 8.3%Water Cost 3.0% 3" 14 December 58% 8.3% Account Growth 0.5% 4" 24.5 January 50% 8.3%Metered Water Demand 0.5% 6" 53.5 February 42% 8.3% No Increase 0.0% 8" 91.5 March 33% 8.3%Inflation + Growth 3.5% 10" 137.5 April 25% 8.3% Metered Demand + Growth 1.0% 12" 201.5 May 17% 8.3%
Fire Demand 0.0% June 8% 8.3%Interest 1.0%Utilities + Delivered Water Demand 3.5% Capacity Maintenance 2.4% Future Debt Issue Term 20 years Developer Fees 1.0% Future Debt Interest Rate 4.25%
Property Taxes 1% Future Issue Cost 1.5%
One time revenue ‐100%
One time expense ‐100%
Current Debt DSCR 1.25x
Operating Fund Target 90 days
City of Porterville
2020 Sewer Rate Study
Revenue Requirement
Budget Forecasted ‐‐>
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Cash Flow Test
Operating Revenues
Charges for Services 7,367,262 $ $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 Total Operating Revenues 7,367,262 $ $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 Non‐Operating Revenues
Other Revenues $ 846,596 $ 855,844 $ 865,284 $ 874,923 $ 884,765 $ 894,816 $ 905,082 $ 915,569 Total Non‐Operating Revenues 846,596 $ $ 855,844 $ 865,284 $ 874,923 $ 884,765 $ 894,816 $ 905,082 $ 915,569 Total Revenues 8,213,858 $ $ 8,223,105 $ 8,232,546 $ 8,242,185 $ 8,252,027 $ 8,262,078 $ 8,272,344 $ 8,282,831 Operating Expenses
Total Sewer Operating System 1,368,902 $ $ 1,409,969 $ 1,452,268 $ 1,495,836 $ 1,540,711 $ 1,586,933 $ 1,634,541 $ 1,683,577 Total Water Conservation Plant 3,024,857 3,115,603 3,209,071 3,305,343 3,404,503 3,506,638 3,611,837 3,720,193 Total Industrial Pre‐Treatment 148,001 152,378 156,886 161,530 166,313 171,239 176,313 181,540 Total Laboratory 477,075 491,387 506,129 521,313 536,952 553,061 569,652 586,742 Total Stormwater O&M ‐ 265,115 273,068 281,261 289,698 298,389 307,341 316,561 Total Operating Expenses 5,018,835 $ $ 5,434,452 $ 5,597,423 $ 5,765,282 $ 5,938,178 $ 6,116,260 $ 6,299,685 $ 6,488,612 Non‐Operating Expenses
Total Interfund Transfers 600,000 $ $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 Debt Service 2,231,098 2,209,113 2,187,309 4,592,148 6,999,501 6,998,695 6,997,275 7,000,322 Rate Funded Capital (PAYGO) $                       ‐ ‐ $                        ‐ $                        ‐ $                      ‐ $ $ 1,460,483 $ 2,772,404 $ 1,329,036 Total Non‐Operating Expenses 2,831,098 $ $ 2,809,113 $ 2,787,309 $ 5,192,148 $ 7,599,501 $ 9,059,178 $ 10,369,679 $ 8,929,358 $ 363,924 $ (20,460) $ (152,186) $ (2,715,246) $ (5,285,653) $ (5,452,878) $ (5,624,616) $ (5,806,104) Policy Expenditures
Additional Expenditures $                        ‐ ‐ $                        ‐ $                        ‐ $                      ‐ $                      ‐ $                      ‐ $                      ‐ $ Additions to Meet Minimum Fund Balances $                       ‐ ‐ $ $ 40,185 $ 233,760 $ 597,278 $ 359,955 $ 652,253 $ 1,236,717 Total Policy Expenditures $                       ‐ ‐ $ $ 40,185 $ 233,760 $ 597,278 $ 359,955 $ 652,253 $ 1,236,717 Additional Expenditures OVERRIDE
Additions to Meet Minimum Fund Balances OVERRIDE
Total Expenses 7,849,933 $ $ 8,243,565 $ 8,424,916 $ 11,191,191 $ 14,134,957 $ 15,535,393 $ 17,321,618 $ 16,654,688 Cash Flow Surplus / (Deficit) 363,924 $ $ (20,460) $ (192,370) $ (2,949,006) $ (5,882,931) $ (7,273,315) $ (9,049,274) $ (8,371,857) City of Porterville
2020 Sewer Rate Study
Revenue Requirement
Budget Forecasted ‐‐>
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Reserves Target Test
Ending Operating Fund Balance 1,363,038 $ $ 1,340,002 $ 1,187,816 $ 866,930 $ 1,148,164 $ 901,094 $ 363,215 $ 2,278,975 Days of O&M Expenditures 100 days 90 days 78 days 55 days 71 days 54 days 22 days 129 days Operating Reserve Balance Above / (Under) Target 125,517 $            ‐ $ $ (192,370) $ (554,646) $ (316,044) $ (607,025) $ (1,190,132) $ 679,043 Debt Coverge Test
Revenues
Sewer Sales 7,367,262 $ $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 Total Non‐Operating Revenues 846,596 855,844 865,284 874,923 884,765 894,816 905,082 915,569 Total Revenues 8,213,858 $ $ 8,223,105 $ 8,232,546 $ 8,242,185 $ 8,252,027 $ 8,262,078 $ 8,272,344 $ 8,282,831 Expenses
Sewer Expenses 5,018,835 $ $ 5,434,452 $ 5,597,423 $ 5,765,282 $ 5,938,178 $ 6,116,260 $ 6,299,685 $ 6,488,612 Debt Service 2,231,098 2,209,113 2,187,309 4,592,148 6,999,501 6,998,695 6,997,275 7,000,322 Debt Coverage 1.25x 557,775 552,278 546,827 1,148,037 1,749,875 1,749,674 1,749,319 1,750,081 Total Expenses 7,807,708 $ $ 8,195,843 $ 8,331,559 $ 11,505,468 $ 14,687,555 $ 14,864,629 $ 15,046,279 $ 15,239,015 Current Debt DSCR (Before Rate Adjustment) 1.43x 1.26x 1.20x 0.54x 0.33x 0.31x 0.28x 0.26x Debt Coverage Surplus / (Deficit) 406,150 $ $ 27,262 $ (99,013) $ (3,263,283) $ (6,435,528) $ (6,602,551) $ (6,773,935) $ (6,956,185) Revenue Requirement
Revenue Surplus/(Shortfalls) 363,924 $ $ (20,460) $ (192,370) $ (3,263,283) $ (6,435,528) $ (7,273,315) $ (9,049,274) $ (8,371,857) Surplus Cash Flow Driven Cash Flow Driven Coverage Driven Coverage Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven Revenue Increase Month July July July July July July July Calculated Rate Increase 0.3% 2.7% 44.3% 87.4% 98.8% 122.9% 113.7%Rate Increase Override 0.0% 0.0% 32.5% 32.5% 8.5% 8.5% 8.5%Utilized Rate Increase 0.0% 0.0% 32.5% 32.5% 8.5% 8.5% 8.5% Cumulative Rate Increase 0.0% 0.0% 32.5% 75.6% 90.5% 106.7% 124.2% City of Porterville
2020 Sewer Rate Study
Revenue Requirement
Budget Forecasted ‐‐>
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Resulting Cash Flows
Rate Revenues before Rate Increase 7,367,262 $ $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 Rate Revenues from Rate Increase ‐                            ‐ ‐ 2,394,360 5,566,887 6,666,290 7,859,141 9,153,386 NON‐Operating Revenues 846,596 855,844 865,284 874,923 884,765 894,816 905,082 915,569 Less: Rate Increase Delay ‐                            ‐ ‐                            ‐                         ‐                         ‐                         ‐                         ‐ Less: Expenditures (7,849,933) (8,243,565) (8,424,916) (11,191,191) (14,134,957) (15,535,393) (17,321,618) (16,654,688) Resulting Cash Flow 363,924 $ $ (20,460) $ (192,370) $ (554,646) $ (316,044) $ (607,025) $ (1,190,132) $ 781,528 Rate Revenue Requirement 7,367,262 $ $ 7,367,262 $ 7,367,262 $ 9,761,622 $ 12,934,148 $ 14,033,551 $ 15,226,403 $ 16,520,647 DSCR (after increase) 1.81x 1.65x 1.60x 1.25x 1.25x 1.39x 1.53x 1.69x City of Porterville
2020 Sewer Rate Study
Operations & Maintenance Expenses
Budget Forecasted ‐‐>
Growth Factor FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Revenue & Expenses Summary
Revenues
Charges for Services 6,310,583 $ $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 Other Revenues 894,691 846,596 855,844 865,284 874,923 884,765 894,816 905,082 915,569 Total Revenues 7,205,274 $ $ 8,213,858 $ 8,223,105 $ 8,232,546 $ 8,242,185 $ 8,252,027 $ 8,262,078 $ 8,272,344 $ 8,282,831

TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
Expenses
Total Sewer Operating System 1,182,784 $ $ 1,368,902 $ 1,409,969 $ 1,452,268 $ 1,495,836 $ 1,540,711 $ 1,586,933 $ 1,634,541 $ 1,683,577 Total Water Conservation Plant 2,690,166 3,024,857 3,115,603 3,209,071 3,305,343 3,404,503 3,506,638 3,611,837 3,720,193 Total Industrial Pre‐Treatment 111,897 148,001 152,378 156,886 161,530 166,313 171,239 176,313 181,540 Total Laboratory 390,367 477,075 491,387 506,129 521,313 536,952 553,061 569,652 586,742 Total Interfund Transfers (726,678) 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 Total Stormwater O&M ‐ ‐ 265,115 273,068 281,261 289,698 298,389 307,341 316,561 Total Expenses 3,648,536 $ $ 5,618,835 $ 6,034,452 $ 6,197,423 $ 6,365,282 $ 6,538,178 $ 6,716,260 $ 6,899,685 $ 7,088,612

TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
Revenues
Charges for Services * assuming no rate increase and the same number of units and usage 4871 Sewer Service Charges [ calculated ] $ 6,310,583 $ 7,167,210 $ 7,167,210 $ 7,167,210 $ 7,167,210 $ 7,167,210 $ 7,167,210 $ 7,167,210 $ 7,167,210 Porter Vista Revenue Offset $ 200,052 $ 200,052 $ 200,052 $ 200,052 $ 200,052 $ 200,052 $ 200,052 $ 200,052 Charges for Services 6,310,583 $ $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 $ 7,367,262 Other Revenues
4005 Property Tax Assessments Account Growth 182,459 $ $ 184,000 $ 184,920 $ 185,845 $ 186,774 $ 187,708 $ 188,646 $ 189,589 $ 190,537 4601 Interest on Investments Interest 65,049 40,000 40,400 40,804 41,212 41,624 42,040 42,461 42,885 4606 Rent of Land ‐ Agricultural Operations 112,596 112,596 115,974 119,453 123,037 126,728 130,530 134,446 138,479 4872 Sewer Dumping Charges Metered Water Demand 50,430 50,000 50,250 50,501 50,754 51,008 51,263 51,519 51,776 4875 Lab Service Charges Metered Water Demand 397,935 375,000 376,875 378,759 380,653 382,556 384,469 386,392 388,324 4899 Other Service Charges Metered Water Demand 4,678 5,000 5,025 5,050 5,075 5,101 5,126 5,152 5,178 4998 Penalties Operations 72,817 75,000 77,250 79,568 81,955 84,413 86,946 89,554 92,241 4999 Other Revenues Operations 8,727 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 Other Revenues $ 894,691 $ 846,596 $ 855,844 $ 865,284 $ 874,923 $ 884,765 $ 894,816 $ 905,082 $ 915,569 Total Revenues 7,205,274 $ $ 8,213,858 $ 8,223,105 $ 8,232,546 $ 8,242,185 $ 8,252,027 $ 8,262,078 $ 8,272,344 $ 8,282,831 0% 14% 0% 0% 0% 0% 0% 0% 0%
City of Porterville
2020 Sewer Rate Study
Operations & Maintenance Expenses
Budget Forecasted ‐‐>
Growth Factor FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Expenses
Sewer Operating System
Personnel Services
5030‐060‐010 Salaries, Regular Labor 176,270 $ $ 275,560 $ 283,827 $ 292,342 $ 301,112 $ 310,145 $ 319,450 $ 329,033 $ 338,904 5030‐060‐020 Salaries, Part‐time Labor ‐ 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 5030‐060‐030 Salaries, Overtime Labor 8,932 9,000 9,270 9,548 9,835 10,130 10,433 10,746 11,069 5030‐060‐090 Benefits Labor 98,782 140,990 145,220 149,576 154,064 158,685 163,446 168,349 173,400 Total Personnel Services 283,984 $ $ 431,550 $ 444,497 $ 457,831 $ 471,566 $ 485,713 $ 500,285 $ 515,293 $ 530,752 Maintenance
5030‐060‐110 Vehicle Mantenance Operations 148,149 $ $ 150,000 $ 154,500 $ 159,135 $ 163,909 $ 168,826 $ 173,891 $ 179,108 $ 184,481 5030‐060‐120 Building/Grounds Maintenance Operations 19,061 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5030‐060‐140 Computer Equipment Maintenance Operations 6,661 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 5030‐060‐190 Other Equipment Maintenance Operations 25,924 31,000 31,930 32,888 33,875 34,891 35,937 37,016 38,126 Total Maintenance 199,795 $ $ 190,000 $ 195,700 $ 201,571 $ 207,618 $ 213,847 $ 220,262 $ 226,870 $ 233,676 Services
5030‐060‐220 Printing/Copying Operations 8,279 $ $ 8,300 $ 8,549 $ 8,805 $ 9,070 $ 9,342 $ 9,622 $ 9,911 $ 10,208 5030‐060‐230 Professional/Temp Service Operations 4,862 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 5030‐060‐260 Rent of Property & Equipment Operations 707 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 5030‐060‐280 Administrative Expense Operations 128,610 131,500 135,445 139,508 143,694 148,004 152,445 157,018 161,728 Total Services 142,458 $ $ 156,800 $ 161,504 $ 166,349 $ 171,340 $ 176,480 $ 181,774 $ 187,227 $ 192,844 Supplies & Materials
5030‐060‐320 Office/Computer Supplies Operations 2,215 $ $ 3,000 $ 3,090 $ 3,183 $ 3,278 $ 3,377 $ 3,478 $ 3,582 $ 3,690 5030‐060‐340 Maintenance and Repair Material Operations 34,537 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 5030‐060‐350 Tools/Equipment Operations 2,592 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 Total Supplies & Materials 39,344 $ $ 50,500 $ 52,015 $ 53,575 $ 55,183 $ 56,838 $ 58,543 $ 60,300 $ 62,109 Other Operating Costs
5030‐060‐410 Meeting Expense Operations 383 $                   ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ 5030‐060‐420 Utilities Operations 68,888 69,875 71,971 74,130 76,354 78,645 81,004 83,434 85,937 5030‐060‐430 Uniform Allowance Operations 1,238 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 5030‐060‐440 Training Expense Operations 341 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 5030‐060‐450 Publication and Dues Operations 410 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 5030‐060‐460 Postage Operations 31,220 32,050 33,012 34,002 35,022 36,073 37,155 38,269 39,417 Total Other Operating Costs 102,480 $ $ 108,925 $ 112,193 $ 115,559 $ 119,025 $ 122,596 $ 126,274 $ 130,062 $ 133,964 Risk Management Expenses
5030‐060‐520 Insurance, Liability Operations 26,400 $ $ 26,400 $ 27,192 $ 28,008 $ 28,848 $ 29,713 $ 30,605 $ 31,523 $ 32,469 Total Risk Management Expenses 26,400 $ $ 26,400 $ 27,192 $ 28,008 $ 28,848 $ 29,713 $ 30,605 $ 31,523 $ 32,469 Other Expenses
5030‐060‐660 Other Expense Operations 2,160 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 5030‐060‐670 Franchise Fee Operations 332,727 332,727 342,709 352,990 363,580 374,487 385,722 397,293 409,212 Total Other Expenses 334,887 $ $ 344,727 $ 355,069 $ 365,721 $ 376,693 $ 387,993 $ 399,633 $ 411,622 $ 423,971 City of Porterville
2020 Sewer Rate Study
Operations & Maintenance Expenses
Budget Forecasted ‐‐>
Growth Factor FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Capital Outlay
5030‐060‐730 Other Machinery/Equipment Construction / Capital 53,436 $ $ 60,000 $ 61,800 $ 63,654 $ 65,564 $ 67,531 $ 69,556 $ 71,643 $ 73,792 Total Capital Outlay 53,436 $ $ 60,000 $ 61,800 $ 63,654 $ 65,564 $ 67,531 $ 69,556 $ 71,643 $ 73,792 Total Sewer Operating System 1,182,784 $ $ 1,368,902 $ 1,409,969 $ 1,452,268 $ 1,495,836 $ 1,540,711 $ 1,586,933 $ 1,634,541 $ 1,683,577 6% 16% 3% 3% 3% 3% 3% 3% 3%
Water Conservation Plant
Personnel Services
5030‐065‐010 Salaries, Regular Labor 451,815 $ $ 537,103 $ 553,216 $ 569,813 $ 586,907 $ 604,514 $ 622,650 $ 641,329 $ 660,569 5030‐065‐030 Salaries, Overtime Labor 20,637 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,5975030‐065‐090 Benefits Labor 264,961 313,914 323,331 333,031 343,022 353,313 363,912 374,830 386,075 Total Personnel Services 737,413 $ $ 871,017 $ 897,148 $ 924,062 $ 951,784 $ 980,337 $ 1,009,747 $ 1,040,040 $ 1,071,241 Maintenance
5030‐065‐110 Vehicle Mantenance Operations 102,834 $ $ 112,000 $ 115,360 $ 118,821 $ 122,385 $ 126,057 $ 129,839 $ 133,734 $ 137,746 5030‐065‐120 Building/Grounds Maintenance Operations 13,801 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 5030‐065‐140 Computer Equipment Maintenance Operations 12,468 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 5030‐065‐190 Other Equipment Maintenance Operations 53,444 19,000 19,570 20,157 20,762 21,385 22,026 22,687 23,368 Total Maintenance 182,547 $ $ 161,000 $ 165,830 $ 170,805 $ 175,929 $ 181,207 $ 186,643 $ 192,242 $ 198,010 Services
5030‐065‐220 Printing/Copying Operations 661 $ $ 700 $ 721 $ 743 $ 765 $ 788 $ 811 $ 836 $ 861 5030‐065‐230 Professional/Temp Service Operations 383,749 500,000 515,000 530,450 546,364 562,754 579,637 597,026 614,937 5030‐065‐260 Rent of Property & Equipment Operations 29,039 35,000 36,050 37,132 38,245 39,393 40,575 41,792 43,046 5030‐065‐280 Administrative Expense Operations 524,654 525,000 540,750 556,973 573,682 590,892 608,619 626,877 645,684 Total Services 938,103 $ $ 1,060,700 $ 1,092,521 $ 1,125,297 $ 1,159,056 $ 1,193,827 $ 1,229,642 $ 1,266,531 $ 1,304,527 Supplies & Materials
5030‐065‐320 Office/Computer Supplies Operations 2,635 $ $ 5,000 $ 5,150 $ 5,305 $ 5,464 $ 5,628 $ 5,796 $ 5,970 $ 6,149 5030‐065‐330 Janitorial Supplies Operations                       ‐ ‐                       ‐ ‐                       ‐                       ‐                       ‐                       ‐                       ‐ 5030‐065‐340 Maintenance and Repair Material Operations 112,745 152,000 156,560 161,257 166,095 171,077 176,210 181,496 186,941 5030‐065‐350 Tools/Equipment Operations 5,202 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 Total Supplies & Materials 120,582 $ $ 162,000 $ 166,860 $ 171,866 $ 177,022 $ 182,332 $ 187,802 $ 193,436 $ 199,240 Other Operating Costs
5030‐065‐410 Meeting Expense Operations 297 $                   ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ 5030‐065‐420 Utilities Operations 449,359 451,640 465,189 479,145 493,519 508,325 523,575 539,282 555,460 5030‐065‐430 Uniform Allowance Operations 4,888 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 5030‐065‐440 Training Expense Operations 1,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 5030‐065‐450 Publication and Dues Operations 2,709 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 5030‐065‐460 Postage Operations 12 500 515 530 546 563 580 597 615 5030‐065‐490 Special Consumables Operations 161,011 187,000 192,610 198,388 204,340 210,470 216,784 223,288 229,986 Total Other Operating Costs 619,276 $ $ 655,140 $ 674,794 $ 695,038 $ 715,889 $ 737,366 $ 759,487 $ 782,271 $ 805,740 Risk Management Expenses
5030‐065‐520 Insurance, Liability Operations $                    ‐ ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ Total Risk Management Expenses $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ City of Porterville
2020 Sewer Rate Study
Operations & Maintenance Expenses
Budget Forecasted ‐‐>
Growth Factor FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Other Expenses
5030‐065‐660 Other Expense Operations 93 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 Total Other Expenses 93 $ $ 20,000 $ 20,600 $ 21,218 $ 21,855 $ 22,510 $ 23,185 $ 23,881 $ 24,597 Capital Outlay
5030‐065‐730 Other Machinery/Equipment Construction / Capital 92,152 $ $ 95,000 $ 97,850 $ 100,786 $ 103,809 $ 106,923 $ 110,131 $ 113,435 $ 116,838 Total Capital Outlay 92,152 $ $ 95,000 $ 97,850 $ 100,786 $ 103,809 $ 106,923 $ 110,131 $ 113,435 $ 116,838 Total Water Conservation Plant 2,690,166 $ $ 3,024,857 $ 3,115,603 $ 3,209,071 $ 3,305,343 $ 3,404,503 $ 3,506,638 $ 3,611,837 $ 3,720,193 4% 12% 3% 3% 3% 3% 3% 3% 3%
Industrial Pre‐Treatment
Personnel Services
5030‐066‐010 Salaries, Regular Labor 33,567 $ $ 46,538 $ 47,934 $ 49,372 $ 50,853 $ 52,379 $ 53,950 $ 55,569 $ 57,236 5030‐066‐090 Benefits Labor 15,884 23,263 23,961 24,680 25,420 26,183 26,968 27,777 28,611 Total Personnel Services 49,451 $ $ 69,801 $ 71,895 $ 74,052 $ 76,273 $ 78,562 $ 80,918 $ 83,346 $ 85,846 Maintenance
5030‐066‐110 Vehicle Mantenance Operations 8,991 $ $ 9,000 $ 9,270 $ 9,548 $ 9,835 $ 10,130 $ 10,433 $ 10,746 $ 11,069 5030‐066‐120 Building/Grounds Maintenance Operations 35,880 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 5030‐066‐190 Other Equipment Maintenance Operations ‐ 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 Total Maintenance 44,871 $ $ 51,000 $ 52,530 $ 54,106 $ 55,729 $ 57,401 $ 59,123 $ 60,897 $ 62,724 Services
5030‐066‐230 Professional/Temp Service Operations 13,136 $ $ 20,000 $ 20,600 $ 21,218 $ 21,855 $ 22,510 $ 23,185 $ 23,881 $ 24,597 Total Services 13,136 $ $ 20,000 $ 20,600 $ 21,218 $ 21,855 $ 22,510 $ 23,185 $ 23,881 $ 24,597 Supplies & Materials
5030‐066‐320 Office/Computer Supplies Operations $                    ‐ ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ 5030‐066‐340 Maintenance and Repair Material Operations 658 500 515 530 546 563 580 597 615 5030‐066‐350 Tools/Equipment Operations ‐ 300 309 318 328 338 348 358 369 Total Supplies & Materials 658 $ $ 800 $ 824 $ 849 $ 874 $ 900 $ 927 $ 955 $ 984 Other Operating Costs
5030‐066‐420 Utilities Operations 1,592 $ $ 1,600 $ 1,648 $ 1,697 $ 1,748 $ 1,801 $ 1,855 $ 1,910 $ 1,968 5030‐066‐430 Uniform Allowance Operations ‐ 50 52 53 55 56 58 60 61 5030‐066‐440 Training Expense Operations ‐ 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 5030‐066‐450 Publication and Dues Operations 89 150 155 159 164 169 174 179 184 Total Other Operating Costs 1,681 $ $ 3,300 $ 3,399 $ 3,501 $ 3,606 $ 3,714 $ 3,826 $ 3,940 $ 4,059 Risk Management Expenses
5030‐066‐520 Insurance, Liability Operations 2,100 $ $ 2,100 $ 2,163 $ 2,228 $ 2,295 $ 2,364 $ 2,434 $ 2,508 $ 2,583 Total Risk Management Expenses 2,100 $ $ 2,100 $ 2,100 $ 2,100 $ 2,100 $ 2,100 $ 2,100 $ 2,100 $ 2,100 Other Expenses
5030‐066‐660 Other Expense Operations $ ‐ $ 1,000 $ 1,030 $ 1,061 $ 1,093 $ 1,126 $ 1,159 $ 1,194 $ 1,230 Total Other Expenses $ ‐ $ 1,000 $ 1,030 $ 1,061 $ 1,093 $ 1,126 $ 1,159 $ 1,194 $ 1,230 City of Porterville
2020 Sewer Rate Study
Operations & Maintenance Expenses
Budget Forecasted ‐‐>
Growth Factor FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Capital Outlay
5030‐066‐730 Other Machinery/Equipment Operations $                    ‐ ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ Total Capital Outlay $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ Total Industrial Pre‐Treatment 111,897 $ $ 148,001 $ 152,378 $ 156,886 $ 161,530 $ 166,313 $ 171,239 $ 176,313 $ 181,540 70% 32% 3% 3% 3% 3% 3% 3% 3%
Laboratory
Personnel Services
5030‐068‐010 Salaries, Regular Labor 166,865 $ $ 205,852 $ 212,028 $ 218,388 $ 224,940 $ 231,688 $ 238,639 $ 245,798 $ 253,172 5030‐068‐030 Salaries, Overtime Labor 1,336 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 5030‐068‐090 Benefits Labor 86,201 108,603 111,861 115,217 118,673 122,234 125,901 129,678 133,568 Total Personnel Services 254,402 $ $ 315,855 $ 325,331 $ 335,091 $ 345,143 $ 355,498 $ 366,163 $ 377,147 $ 388,462 Maintenance
5030‐068‐110 Vehicle Mantenance Operations $                    ‐ ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ 5030‐068‐120 Building/Grounds Maintenance Operations 5,580 6,350 6,541 6,737 6,939 7,147 7,361 7,582 7,810 5030‐068‐190 Other Equipment Maintenance Operations 25,320 35,320 36,380 37,471 38,595 39,753 40,946 42,174 43,439 Total Maintenance 30,900 $ $ 41,670 $ 42,920 $ 44,208 $ 45,534 $ 46,900 $ 48,307 $ 49,756 $ 51,249 Services
5030‐068‐220 Printing/Copying Operations 256 $ $ 300 $ 309 $ 318 $ 328 $ 338 $ 348 $ 358 $ 369 5030‐068‐230 Professional/Temp Service Operations 17,111 17,000 17,510 18,035 18,576 19,134 19,708 20,299 20,908 5030‐068‐260 Rent of Property & Equipment Operations 3,231 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 Total Services 20,598 $ $ 21,300 $ 21,939 $ 22,597 $ 23,275 $ 23,973 $ 24,693 $ 25,433 $ 26,196 Supplies & Materials
5030‐068‐320 Office/Computer Supplies Operations 2,031 $ $ 2,100 $ 2,163 $ 2,228 $ 2,295 $ 2,364 $ 2,434 $ 2,508 $ 2,583 5030‐068‐330 Janitorial Supplies Operations                       ‐ ‐                       ‐ ‐                       ‐                       ‐                       ‐                       ‐                       ‐ 5030‐068‐340 Maintenance and Repair Material Operations 138 200 206 212 219 225 232 239 246 5030‐068‐350 Tools/Equipment Operations ‐ 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 Total Supplies & Materials 2,169 $ $ 3,800 $ 3,914 $ 4,031 $ 4,152 $ 4,277 $ 4,405 $ 4,537 $ 4,674 Other Operating Costs
5030‐068‐420 Utilities Operations 18,017 $ $ 19,000 $ 19,570 $ 20,157 $ 20,762 $ 21,385 $ 22,026 $ 22,687 $ 23,368 5030‐068‐430 Uniform Allowance Operations 416 600 618 637 656 675 696 716 738 5030‐068‐440 Training Expense Operations ‐ 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 5030‐068‐450 Publication and Dues Operations 1,304 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 5030‐068‐460 Postage Operations 137 250 258 265 273 281 290 299 307 5030‐068‐490 Special Consumables Operations 55,436 63,000 64,890 66,837 68,842 70,907 73,034 75,225 77,482 Total Other Operating Costs 75,310 $ $ 86,750 $ 89,353 $ 92,033 $ 94,794 $ 97,638 $ 100,567 $ 103,584 $ 106,692 Risk Management Expenses
5030‐068‐520 Insurance, Liability Operations 4,200 $ $ 4,200 $ 4,326 $ 4,456 $ 4,589 $ 4,727 $ 4,869 $ 5,015 $ 5,165 Total Risk Management Expenses 4,200 $ $ 4,200 $ 4,326 $ 4,456 $ 4,589 $ 4,727 $ 4,869 $ 5,015 $ 5,165 City of Porterville
2020 Sewer Rate Study
Operations & Maintenance Expenses
Budget Forecasted ‐‐>
Growth Factor FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Other Expenses
5030‐068‐660 Other Expense Operations 546 $ $ 1,000 $ 1,030 $ 1,061 $ 1,093 $ 1,126 $ 1,159 $ 1,194 $ 1,230 Total Other Expenses 546 $ $ 1,000 $ 1,030 $ 1,061 $ 1,093 $ 1,126 $ 1,159 $ 1,194 $ 1,230 Capital Outlay
5030‐068‐730 Other Machinery/Equipment Operations 2,242 $ $ 2,500 $ 2,575 $ 2,652 $ 2,732 $ 2,814 $ 2,898 $ 2,985 $ 3,075 Total Capital Outlay 2,242 $ $ 2,500 $ 2,575 $ 2,652 $ 2,732 $ 2,814 $ 2,898 $ 2,985 $ 3,075 Total Laboratory 390,367 $ $ 477,075 $ 491,387 $ 506,129 $ 521,313 $ 536,952 $ 553,061 $ 569,652 $ 586,742 ‐1% 22% 3% 3% 3% 3% 3% 3% 3%
Interfund Transfers
4210 Transfers from Other Funds No Increase 3,892 $                ‐ $ $                    ‐ ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $ 4210 Transfers to Other Funds No Increase (730,570) 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 Total Interfund Transfers (726,678) $ $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 Stormwater O&M
TBD Stormwater Operation & Maintenance Operations 265,115 $ $ 273,068 $ 281,261 $ 289,698 $ 298,389 $ 307,341 $ 316,561 Total Stormwater O&M $                    ‐ ‐ $ $ 265,115 $ 273,068 $ 281,261 $ 289,698 $ 298,389 $ 307,341 $ 316,561 Total Expenses 3,648,536 $ $ 5,618,835 $ 6,034,452 $ 6,197,423 $ 6,365,282 $ 6,538,178 $ 6,716,260 $ 6,899,685 $ 7,088,612 70% 54% 7% 3% 3% 3% 3% 3% 3%
City of Porterville
2020 Sewer Rate Study
Reserves & CIP Funding Plan
Projected Forecasted ‐‐>
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Capital Funding Summary
Capital Funding Needs
SRF $ 207,000 $ 121,000 $ 195,438 $ 164,954 $ 82,553 $ 85,236 $ 88,006 $ 90,866 Sewer Bond Refi ‐ 2,955,000 3,050,000 3,050,000 2,580,000              ‐ 2,420,000                          ‐ Developer Fees 321,198 554,223 200,000 207,000 214,000 221,000 229,000 237,000 Unfunded ‐ 4,388,000 5,746,000 3,045,000 2,682,350 2,783,642 3,188,263 1,738,911 WWTFR 5,085,261 1,261,928 84,590 30,687,340 30,090,178 93,109 96,135 99,259 Capital Funding Needs 5,613,459 $ $ 9,280,151 $ 9,276,028 $ 37,154,294 $ 35,649,081 $ 5,602,987 $ 3,601,404 $ 2,166,036 Capital Funding Sources
Grants $                       ‐ ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Sewer Bond Refi ‐ 2,955,000 3,050,000 3,050,000 2,580,000              ‐ 2,420,000                          ‐ Developer Fees 321,198 554,223 200,000 207,000 214,000 221,000 229,000 237,000 Impact Fees                          ‐ ‐                          ‐                          ‐                          ‐                          ‐                          ‐                          ‐ Initial use of Capital Reserve (WWTFR) 5,085,261
Initial use of Sewer Revolving Fund 207,000
Additional use of Capital Reserve (WWTFR) ‐ 5,770,928 3,102,590 300,000 1,456,585 1,201,504 300,000 300,000 Additional use of Sewer Revolving Fund                          ‐ ‐ 2,923,438 2,753,879 300,000 300,000 300,000 300,000Use of Bond Proceeds                          ‐ ‐                          ‐ 30,843,415            ‐ 31,098,496                          ‐                          ‐ Rate Funded (PAYGO)                          ‐ ‐                          ‐                          ‐                          ‐ 1,460,483 2,772,404 1,329,036 Total Capital Funding Sources 5,613,459 $ $ 9,280,151 $ 9,276,028 $ 37,154,294 $ 35,649,081 $ 5,602,987 $ 3,601,404 $ 2,166,036

TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
Reserves Summary
Sewer Operating Fund 2,382,042 $ $ 1,363,038 $ 1,340,002 $ 1,187,816 $ 866,930 $ 1,148,164 $ 901,094 $ 363,215 $ 2,278,975 Wastewater Treatment Facility Capital Fund (WWTFR) 7,436,799 8,998,727 3,530,376 727,786 1,884,371 1,629,290 727,786 727,786 830,271Sewer Revolving Fund (SRF) 6,153,740 6,574,740 6,877,317 4,253,879 1,800,000 1,800,000 1,800,000 1,800,000 1,893,819 Ending Balance ‐ All Funds 15,972,581 $ $ 16,936,505 $ 11,747,695 $ 6,169,481 $ 4,551,301 $ 4,577,454 $ 3,428,880 $ 2,891,001 $ 5,003,065 Interest Earnings $ ‐ $ 164,545 $ 143,421 $ 89,586 $ 53,604 $ 45,644 $ 40,032 $ 31,599 $ 39,470 Fund Assumptions
Interest Earnings 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%Minimum Target ‐ Sewer Operating Fund 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days Maximum Target ‐ Sewer Operating Fund 180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days Minimum Target ‐ WWTF Capital Fund 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD 1.0% RCNLD Maximum Target ‐ WWTF Capital Fund 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD 2.0% RCNLD Minimum Target ‐ Sewer Revolving Fund (SRF) 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days Maximum Target ‐ Sewer Revolving Fund (SRF) 180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days 180 days City of Porterville
2020 Sewer Rate Study
Reserves & CIP Funding Plan
Projected Forecasted ‐‐>
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Sewer Operating Fund
Beginning Balance 2,362,470 $ $ 2,382,042 $ 1,363,038 $ 1,340,002 $ 1,187,816 $ 866,930 $ 1,148,164 $ 901,094 $ 363,215 Addition to meet min. balance                          ‐ ‐                          ‐ 40,185 233,760 597,278 359,955 652,253 1,236,717 Cash Flows 1,610,244 363,924 (20,460) (192,370) (554,646) (316,044) (607,025) (1,190,132) 781,528 Ending Balance Prior to Year End Transfers 3,972,714 $ $ 2,745,966 $ 1,342,579 $ 1,187,816 $ 866,930 $ 1,148,164 $ 901,094 $ 363,215 $ 2,381,460 Year End Transfers
Transfers From/(To) WWTFR (1,261,928)                     ‐ (2,577)                          ‐                          ‐                          ‐                          ‐ (102,485) Transfers From/(To) SRF (121,000)
Ending Balance $ 2,382,042 $ 1,363,038 $ 1,340,002 $ 1,187,816 $ 866,930 $ 1,148,164 $ 901,094 $ 363,215 $ 2,278,975 Days of O&M Expenditures 199 days 100 days 90 days 78 days 55 days 71 days 54 days 22 days 129 days Minimum Target 1,078,820 $ $ 1,237,521 $ 1,340,002 $ 1,380,186 $ 1,421,576 $ 1,464,208 $ 1,508,119 $ 1,553,347 $ 1,599,932 Maximum Target 2,157,640 $ $ 2,475,042 $ 2,680,004 $ 2,760,373 $ 2,843,153 $ 2,928,416 $ 3,016,238 $ 3,106,694 $ 3,199,864 Interest Earnings 18,725 $ $ 13,515 $ 12,639 $ 10,274 $ 10,075 $ 10,246 $ 6,322 $ 13,211 Wastewater Treatment Facility Capital Fund (WWTFR)
Beginning Balance 6,048,218 $ $ 7,436,799 $ 8,998,727 $ 3,530,376 $ 727,786 $ 1,884,371 $ 1,629,290 $ 727,786 $ 727,786 Unused Bond Proceeds                          ‐ ‐                          ‐ 1,156,585                 ‐ 901,504                          ‐                          ‐ Transfer From Sewer Operating Fund 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Less: Use of Funds                          ‐ ‐ (5,770,928) (3,102,590) (300,000) (1,456,585) (1,201,504) (300,000) (300,000) Ending Balance Prior to Year End Transfers 6,048,218 $ $ 7,736,799 $ 3,527,799 $ 727,786 $ 1,884,371 $ 1,629,290 $ 727,786 $ 727,786 $ 727,786 Year End Transfers
Transfer (To)/From Operating (Year End) $ 1,261,928 $                   ‐ 2,577 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ $ 102,485 Ending Balance $ 7,436,799 $ 8,998,727 $ 3,530,376 $ 727,786 $ 1,884,371 $ 1,629,290 $ 727,786 $ 727,786 $ 830,271 Minimum Target 427,786 $ $ 427,786 $ 427,786 $ 427,786 $ 427,786 $ 427,786 $ 427,786 $ 427,786 $ 427,786 Maximum Target 855,572 $ $ 855,572 $ 855,572 $ 855,572 $ 855,572 $ 855,572 $ 855,572 $ 855,572 $ 855,572 Interest Earnings 82,178 $ $ 62,646 $ 21,291 $ 13,061 $ 17,568 $ 11,785 $ 7,278 $ 7,790 Sewer Revolving Fund (SRF)
Beginning Balance 5,749,619 $ $ 6,153,740 $ 6,574,740 $ 6,877,317 $ 4,253,879 $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,800,000 Transfer From Sewer Operating Fund 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Less: Use of Funds                          ‐ ‐                          ‐ (2,923,438) (2,753,879) (300,000) (300,000) (300,000) (300,000) Ending Balance Prior to Year End Transfers 5,749,619 $ $ 6,453,740 $ 6,874,740 $ 4,253,879 $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,800,000 Year End Transfers
Transfers From/(To) Operating Reserve $ 121,000 $                   ‐ 2,577 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ $ 93,819 Ending Balance $ 6,153,740 $ 6,574,740 $ 6,877,317 $ 4,253,879 $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,893,819 Minimum Target 1,500,000 $ $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Maximum Target
Interest Earnings 63,642 $ $ 67,260 $ 55,656 $ 30,269 $ 18,000 $ 18,000 $ 18,000 $ 18,469 City of Porterville
2020 Sewer Rate Study
Debt Service
FYE 2020 FYE 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Debt Service Summary
Current Debt
Principal Payment 724,000 $ $ 919,000 $ 1,028,000 $ 1,138,000 $ 1,176,000 $ 1,221,000 $ 1,265,000 $ 1,310,000 $ 1,360,000 Interest Payment 1,222,494 1,312,098 1,181,113 1,049,309 1,009,114 964,432 919,626 873,206 826,253 Total Current Debt Service 1,946,494 $ $ 2,231,098 $ 2,209,113 $ 2,187,309 $ 2,185,114 $ 2,185,432 $ 2,184,626 $ 2,183,206 $ 2,186,253 Future Debt
Principal Payment $                 ‐ ‐ $                 ‐ $                 ‐ $ $ 1,047,035 $ 2,138,568 $ 2,229,458 $ 2,324,210 $ 2,422,988 Interest Payment                    ‐ ‐                    ‐                    ‐ 1,360,000 2,675,501 2,584,612 2,489,860 2,391,081 Total Future Debt Service $                 ‐ ‐ $                 ‐ $                 ‐ $ $ 2,407,035 $ 4,814,069 $ 4,814,069 $ 4,814,069 $ 4,814,069 All Debt
Principal Payment 724,000 $ $ 919,000 $ 1,028,000 $ 1,138,000 $ 2,223,035 $ 3,359,568 $ 3,494,458 $ 3,634,210 $ 3,782,988 Interest Payment 1,222,494 1,312,098 1,181,113 1,049,309 2,369,114 3,639,933 3,504,238 3,363,066 3,217,334 Total Debt Service 1,946,494 $ $ 2,231,098 $ 2,209,113 $ 2,187,309 $ 4,592,148 $ 6,999,501 $ 6,998,695 $ 6,997,275 $ 7,000,322 Current Debt Service
2018 Installment Sale Agreement (Refunding 2011 A Revenue Bond) Principal Payment $ 514,000 $ 699,000 $ 798,000 $ 898,000 $ 926,000 $ 961,000 $ 995,000 $ 1,030,000 $ 1,065,000 Interest Payment 866,571 836,698 714,513 591,909 561,314 526,632 492,226 456,606 420,853 Total Debt Service 1,380,571 $ $ 1,535,698 $ 1,512,513 $ 1,489,909 $ 1,487,314 $ 1,487,632 $ 1,487,226 $ 1,486,606 $ 1,485,853 2019 Sewer Revenue Certificates of Particpation (2019 Financing Project) Principal Payment $ 210,000 $ 220,000 $ 230,000 $ 240,000 $ 250,000 $ 260,000 $ 270,000 $ 280,000 $ 295,000 Interest Payment 355,923 475,400 466,600 457,400 447,800 437,800 427,400 416,600 405,400 Total Debt Service 565,923 $ $ 695,400 $ 696,600 $ 697,400 $ 697,800 $ 697,800 $ 697,400 $ 696,600 $ 700,400 City of Porterville
2020 Sewer Rate Study
Debt Service
FYE 2020 FYE 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Future Revenue Bond Issuance
Debt Issuance Input $                 ‐ ‐ $                 ‐ $                 ‐ $ $ 32,000,000 $     ‐ 32,000,000 $                   ‐ $                   ‐ $ 2020 Issue 12345 6 7 89
Principal Payment 20 years $                 ‐ ‐ $                 ‐ $                 ‐ $                 ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ Interest Payment 4.25%                    ‐ ‐                    ‐                    ‐                    ‐                    ‐                       ‐                       ‐                       ‐ Total Debt Service $                 ‐ ‐ $                 ‐ $                 ‐ $                 ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ 2021 Issue 1234 5 6 7 8
Principal Payment 20 years $                 ‐ ‐ $                 ‐ $                 ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ Interest Payment 4.25%                    ‐ ‐                    ‐                    ‐                    ‐                       ‐                       ‐                       ‐ Total Debt Service $                 ‐ ‐ $                 ‐ $                 ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ 2022 Issue 123 4 5 6 7
Principal Payment 20 years $                 ‐ ‐ $                 ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ Interest Payment 4.25%                    ‐ ‐                    ‐                    ‐                       ‐                       ‐                       ‐ Total Debt Service $                 ‐ ‐ $                 ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ 2023 Issue 12 3 4 5 6
Principal Payment 20 years $                 ‐ ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ Interest Payment 4.25%                    ‐ ‐                    ‐                       ‐                       ‐                       ‐ Total Debt Service $                 ‐ ‐ $                 ‐ $                   ‐ $                   ‐ $                   ‐ $ 2024 Issue 12345
Principal Payment 20 years $ 1,047,035 $ 1,091,534 $ 1,137,924 $ 1,186,286 $ 1,236,703 Interest Payment 4.25% 1,360,000 1,315,501 1,269,111 1,220,749 1,170,332 Total Debt Service $ 2,407,035 $ 2,407,035 $ 2,407,035 $ 2,407,035 $ 2,407,035 2025 Issue 1234
Principal Payment 20 years $ 1,047,035 $ 1,091,534 $ 1,137,924 $ 1,186,286Interest Payment 4.25% 1,360,000 1,315,501 1,269,111 1,220,749 Total Debt Service $ 2,407,035 $ 2,407,035 $ 2,407,035 $ 2,407,035 City of Porterville
2020 Sewer Rate Study
Capital Improvement Plan
Project Description Funding Source FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 All Sewer CIP by Funding Source
SRF $ 1,225,740 $ 207,000 $ 121,000 $ 195,438 $ 164,954 $ 82,553 $ 85,236 $ 88,006 $ 90,866 Sewer Bond Refi 14,055,000 ‐ 2,955,000 3,050,000 3,050,000 2,580,000               ‐ 2,420,000                           ‐ Developer Fees 2,681,421 321,198 554,223 200,000 207,000 214,000 221,000 229,000 237,000 Unfunded 37,208,055 ‐ 4,388,000 5,746,000 3,045,000 2,682,350 2,783,642 3,188,263 1,738,911 WWTFR 67,706,101 5,085,261 1,261,928 84,590 30,687,340 30,090,178 93,109 96,135 99,259 Total All Sewer CIP by Funding Source 122,876,317 $ $ 5,613,459 $ 9,280,151 $ 9,276,028 $ 37,154,294 $ 35,649,081 $ 5,602,987 $ 3,601,404 $ 2,166,036 Sewer Infastructure CIP
Sewer Replacement Program
Phase III ‐ Putnam/RR to Plano SRF $ 107,000
Phase IV ‐ Baker/Murry SRF 46,000Phase V ‐ Murry/Harrison to Putnam SRF 118,000Phase VI ‐ Roche/Alley/Henrahan SRF 85,000 Total Sewer Replacement Program 107,000 $ $ 46,000 $ 118,000 $                 ‐ 85,000 $                       ‐ $                       ‐ $                       ‐ $ Island Annexation Sewer Projects
*Area 1 (456A & 457) Poplar/Brown/Wisconsin/Jaye St Sewer Bond Refi $ 1,200,000 *Area 5 (456B & 456C) Olive/Center/Cloverleaf/Jaye St Sewer Bond Refi 1,755,000 >Annexation 474 ‐ Beverly Grand Area Boyles/Beverly/Prospect/Maston Sts Sewer Bond Refi 1,500,000 >Annexation 475 ‐ Westfield/Jaye Area Villa/Woods/Jaye/Mulberry Sewer Bond Refi 1,550,000 >Annexation 476 ‐ Akin/Ponca Area Yates/Worth/3rd/4th/Lincoln/Gibbons Sewer Bond Refi 3,050,000 >Annexation 478 ‐ Cobb/Dogwood Areas Cobb/Dogwood/Elderwood/Putnam Sewer Bond Refi 2,580,000 >Annexation 479 ‐ Roby Island Area Atkins/Lucy/Waukesha/Maston/Cobb/ S Sewer Bond Refi 2,420,000 Total Island Annexation Sewer Projects $ ‐ $ 2,955,000 $ 3,050,000 $ 3,050,000 $ 2,580,000 $           ‐ 2,420,000 $                       ‐ $ Other Projects
Lift Station Upgrade SRF $ 100,000 $ 75,000 $ 77,438 $ 79,954 $ 82,553 $ 85,236 $ 88,006 $ 90,866 Main St. @ SR 190 Casing (Poplar conn) Unfunded 58,853
Main St. @ SR 190 Vandalia Ave Pipe (Poplar conn) Unfunded 85,698Mathew St Capacity Analysis ‐ Lift St. No. 11 Mulberry to Henderson Developer Fees 15,000 Mulberry (Los Robles east) Unfunded 91,000
Newcomb ‐ Henderson south to Grand Ave. ‐ Pipe Unfunded 396,000Hwy 190 ‐ Jaye St. to E. St. ‐ Pipe Unfunded 352,000Hwy 190 ‐ E. St. to Main St. ‐ Pipe Unfunded 151,000 Vandalia Ave. ‐ Main St. to Plano St. ‐ Pipe Developer Fees 361,000 Total Other Projects $ 115,000 $ 939,000 $ 473,438 $ 79,954 $ 173,553 $ 229,787 $ 88,006 $ 90,866 Sewer Infastructure CIP by Funding Source
SRF $ 207,000 $ 121,000 $ 195,438 $ 164,954 $ 82,553 $ 85,236 $ 88,006 $ 90,866 Sewer Bond Refi ‐ 2,955,000 3,050,000 3,050,000 2,580,000               ‐ 2,420,000                           ‐ Developer Fees 15,000                  ‐ 361,000                           ‐                           ‐                           ‐                           ‐                           ‐ Unfunded ‐ 503,000                  ‐ 396,000 91,000                  ‐ 144,551                           ‐ Total Sewer Infastructure CIP 222,000 $ $ 3,940,000 $ 3,641,438 $ 3,214,954 $ 2,753,553 $ 2,649,787 $ 88,006 $ 90,866

TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
City of Porterville
2020 Sewer Rate Study
Capital Improvement Plan
Project Description Funding Source FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Wastewater Treatment Facility CIP
Other Projects
Blower Building Floor Coating/Noise Attenuation WWTFR $ 125,000 Canopy for dewatering equipment WWTFR 24,928
Digester #2 and #3 Repairs, incl wastegas flare replacement and piping WWTFR 2,477,475 Digester Cleaning/Coating/Equipment Replacement WWTFR 79,349 81,928 84,590 87,340 90,178 93,109 96,135 99,259 Effluent Outfall Pump Replacement WWTFR 600,000
Emergency Generator for WWTF (200kW) WWTFR 150,000
Manhole 10A Inspection/Repair WWTFR 99,760
Reclamation Area Pipeline Installation WWTFR 100,000
Septic Station Retrofit WWTFR 70,000
Sludge/Grit Staging Area WWTFR 300,000
Sludge Line ‐ Westwood Bridge over Tule River WWTFR 30,000 WAS Pump Replacement WWTFR 300,000
Wastewater Needs Assessment and Master Plan WWTFR 38,828 Total Other Projects $ 3,765,340 $ 111,928 $ 84,590 $ 687,340 $ 90,178 $ 93,109 $ 96,135 $ 99,259 Digester #1 and #4 Repairs
Digester Design WWTFR $ 325,000
Digester Construction Unfunded 1,500,000
Total Digester #1 and #4 Repairs 325,000 $ $           ‐ 1,500,000 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Odor Control Project ‐ Phase 2
Odor Control Design WWTFR $ 250,000
Odor ControlConstruction Unfunded 1,750,000
Total Odor Control Project ‐ Phase 2 $ ‐ $ 250,000 $           ‐ 1,750,000 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Office Building Repair
Office Building ‐ Design WWTFR $ 200,000
Office Building ‐ Relocation to temp structure WWTFR 50,000 Office Building ‐ Remediation and Demolition WWTFR 100,000Office Building ‐ Construction WWTFR 700,000 Total Office Building Repair $ 350,000 $               ‐ 700,000 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Plant #2 Evaluation & Repairs
Plant #2 ‐ Evaluation WWTFR $ 25,000
Plant #2 ‐ Design WWTFR 125,000Plant #2 ‐ Construction Unfunded 400,000 Total Plant #2 Evaluation & Repairs 150,000 $ $               ‐ 400,000 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ Plant #1 Evaluation & Repairs
Plant #1 ‐ Evaluation Unfunded $ 25,000Plant #1 ‐ Design incl re‐asphalt Unfunded $ 125,000 Plant #1 ‐ Construction incl asphalt repairs Unfunded 600,000 Total Plant #1 Evaluation & Repairs $ ‐ $ 150,000 $               ‐ 600,000 $                       ‐ $                       ‐ $                       ‐ $                       ‐ $ City of Porterville
2020 Sewer Rate Study
Capital Improvement Plan
Project Description Funding Source FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Tertiary Treatment
Tertiary Treatment ‐ CEQA WWTFR $ 269,921
Tertiary Treatment ‐ Property Acquisition WWTFR $ 200,000 Tertiary Treatment ‐ Design Unfunded 585,000 1,500,000 1,500,000 1,000,000 Tertiary Treatment ‐ Nitrification/De‐nitrification Project ‐ Consultant Service WWTFR 200,000 30,000,000 30,000,000 Tertiary Treatment ‐ Nitrification/De‐nitrification Project ‐ Construction UnfundedTertiary Treatment ‐ Construction / Sludge bed Relocation Unfunded 1,000,000 1,500,000 Total Tertiary Treatment $ 469,921 $ 785,000 $ 1,500,000 $ 31,500,000 $ 31,000,000 $ 1,000,000 $           ‐ 1,500,000 $ Wastewater Treatment Facility CIP by Funding Source
WWTFR $ 5,060,261 $ 1,261,928 $ 84,590 $ 30,687,340 $ 30,090,178 $ 93,109 $ 96,135 $ 99,259 Unfunded ‐ 2,635,000 3,850,000 1,500,000 1,000,000 1,000,000               ‐ 1,500,000 Total Wastewater Treatment Facility CIP 5,060,261 $ $ 3,896,928 $ 3,934,590 $ 32,187,340 $ 31,090,178 $ 1,093,109 $ 1,596,135 $ 99,259

TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
Master Plans
MASTER PLANS ‐ Sewer Master Plan Payback Developer Fees $ 187,141 $ 193,223 $ 200,000 $ 207,000 $ 214,000 $ 221,000 $ 229,000 $ 237,000 MASTER PLANS ‐ Master Plan Update Developer Fees 71,533 MASTER PLANS ‐ Comprehensive Impact Fee Study Developer Fees 47,524MASTER PLANS ‐ Comprehensive Impact Fee Study WWTFR 25,000 Total Master Plans 331,198 $ $ 193,223 $ 200,000 $ 207,000 $ 214,000 $ 221,000 $ 229,000 $ 237,000 Stormwater Capital Projects
STORMWATER ‐ Programmed Capital Project Budget Unfunded $ ‐ $ 1,250,000 $ 1,500,000 $ 1,545,000 $ 1,591,350 $ 1,639,091 $ 1,688,263 $ 1,738,911 Total Stormwater Capital Projects $ ‐ $ 1,250,000 $ 1,500,000 $ 1,545,000 $ 1,591,350 $ 1,639,091 $ 1,688,263 $ 1,738,911 City of Porterville
2020 Sewer Rate Study
Capital Improvement Plan
Asset # Description Acq date ENR‐CCI Total Life Acqusition Cost Salvage Value Other Period
Accumulated
Depreciation
Current Period
Depreciation Net Value TrendedDepreciation
Replacement Cost
New Less
Deprecition (RCNLD)
Assets Summary Total Sewer System $ ‐ 41,605,682 $ $ 5,994,939 $ 11,599,242 $ 24,011,502 $ 57,970,875 $ 42,778,613 2602 Grit Collector Rehab 6/30/1999 1.92 240 $ ‐ 31,775 $ $ 3,177 $ ‐ 28,597 $ $ ‐ 60,937 $ 5695 Chlorine Building 6/30/1999 1.92 600 ‐ 279,583 11,183 75,488 192,912 166,215 369,961 6545 1998 Ford F‐150 Pickup 2/10/1998 1.96 60 ‐ 15,890 10,593 ‐ 5,297 ‐ 31,189 6896‐1 2003Freightliner 5‐7 Ton Dump Truck 7/1/2014 1.18 84 ‐ 63,044 ‐ ‐ 63,044 ‐ 74,702 6935‐1 ISO Model 6700FR Refrigerated Composite Sa 9/22/1999 1.92 60 ‐ 13,007 4,553 ‐ 8,455 ‐ 24,945 6939‐1 Repair 125hp Effluent Pump 11/9/1999 1.92 60 ‐ 15,193 5,064 ‐ 10,129 ‐ 29,137 6940‐1 Digester waste Gas Burner 6/1/2000 1.87 60 ‐ 3,629 786 ‐ 2,843 ‐ 6,778 6983 Effluent Flow meter 24" 150 psi Outfall Line 6/9/2000 1.87 60 ‐ 2,955 640 ‐ 2,315 ‐ 5,519 7046 Land‐ Newcomb/Morton 7/1/1953 19.37 ‐ ‐ 22,000 ‐ ‐ ‐ 22,000 426,058 7047 Land‐ Newcomb/Morton 7/2/1953 19.37 ‐ ‐ 22,000 ‐ ‐ ‐ 22,000 426,058 7048 Land‐ Newcomb/Morton 7/3/1953 19.37 ‐ ‐ 22,000 ‐ ‐ ‐ 22,000 426,058 7049 Land‐ Newcomb/Morton 7/4/1953 19.37 ‐ ‐ 22,000 ‐ ‐ ‐ 22,000 426,058 7050 Land‐ Prospect/Morton 7/5/1953 19.37 ‐ ‐ 5,500 ‐ ‐ ‐ 5,500 106,515 7144 Gantry Crane 9/6/2000 1.87 60 ‐ 1,483 247 ‐ 1,236 ‐ 2,769 7188 Land‐ Underhill Property 12261 Road 216 11/3/2000 1.87 ‐ ‐ 748,877 ‐ ‐ ‐ 748,877 1,398,775 7191 Storage Building 6/30/2001 1.83 480 ‐ 19,696 ‐ 8,863 10,833 16,259 19,873 7360 169 Acres land‐ Nuckols Property (302‐010‐0‐0 6/30/2003 1.74 ‐ ‐ 1,144,912 ‐ ‐ ‐ 1,144,912 1,987,097 7365 Cast Iron Case Pump 10/24/2002 1.78 120 ‐ 9,799 ‐ ‐ 9,799 ‐ 17,416 7369 Percolation Pond on the Underhill Property (8 6/30/2003 1.74 ‐ ‐ 376,541 ‐ ‐ ‐ 376,541 653,521 7369‐1 Percolation Pond on the Underhill Property (FY 6/30/2004 1.63 ‐ ‐ 34,746 ‐ ‐ ‐ 34,746 56,744 7371 Monitoring Well FY2003 #89‐9674 6/30/2003 1.74 600 ‐ 128,288 ‐ 41,052 87,236 71,249 151,407 7450 Effluent Manhole‐ Teapot Dome (89‐9695) 6/30/2004 1.63 480 ‐ 24,724 ‐ 9,272 15,453 15,142 25,236 7483 Land‐ Hunsaker Property (163.4 acres for Perc 10/8/2004 1.63 ‐ ‐ 743,829 ‐ ‐ ‐ 743,829 1,214,775 7513 Upgrade SCADA 6/30/2006 1.50 60 ‐ 43,927 ‐ ‐ 43,927 ‐ 65,849 7514 Sludge Drying Beds Expansion 6/30/2006 1.50 600 ‐ 863,485 ‐ 224,506 638,979 336,549 957,872 7581 2008 Ford F150 4x2 Regular Cab Shortbed Pick 4/17/2008 1.40 60 ‐ 14,178 ‐ ‐ 14,178 ‐ 19,823 7605 2008 Ford F350 with 12' Flatbed and Crane (EQ 5/2/2008 1.40 84 ‐ 33,744 ‐ ‐ 33,744 ‐ 47,179 7616 Waukesha Model#VGS11GSID Standby Engine 11/28/2007 1.46 120 ‐ 282,788 ‐ ‐ 282,788 ‐ 412,236 7668 Rotary Screw Air Compressor and Refrigerated 6/30/2009 1.36 120 ‐ 17,318 ‐ ‐ 17,318 ‐ 23,481 7669 Rotary Screw Air Compressor and Refrigerated 6/30/2009 1.36 120 ‐ 17,318 ‐ ‐ 17,318 ‐ 23,481 7670 Orival Electric Filter with 500micron Screen an 7/30/2008 1.40 120 ‐ 8,911 ‐ ‐ 8,911 ‐ 12,459 7671 Air Conditioning Unit for Headworks Building 7/1/2008 1.40 120 ‐ 7,152 ‐ ‐ 7,152 ‐ 9,999 7672 Air Conditioning Unit for Outfall Building 7/1/2008 1.40 120 ‐ 7,152 ‐ ‐ 7,152 ‐ 9,999 7702 Reclamation Road 216 Pipeline and Weir 6/30/2010 1.32 480 ‐ 161,723 ‐ 36,387 125,336 48,025 165,422 7739 2011Kawasaki KAF400ABFL Mule Off‐Road EQ 4/13/2011 1.28 60 ‐ 9,394 ‐ ‐ 9,394 ‐ 12,035 7746 5 Ton 14Seer Trane HVAC ‐ WWTF Control Bui 5/31/2011 1.28 120 ‐ 13,000 ‐ 10,508 2,492 13,462 3,192 7747 5 Ton 14Seer Trane HVAC ‐ WWTF Control Bui 5/31/2011 1.28 120 ‐ 13,000 ‐ 10,508 2,492 13,462 3,192 7748 3 1/2 Ton 14 Seer Trane HVAC ‐ WWTF Sludge 5/31/2011 1.28 120 ‐ 5,400 ‐ 4,365 1,035 5,592 1,326 7749 150 hp Turbine Pump with 150' Column (Recla 1/30/2011 1.28 120 ‐ 23,157 ‐ 19,491 3,667 24,970 4,697 7847 12' Henke Blade & JRB Hyd Coupler for WWTF 6/14/2013 1.22 60 ‐ 28,643 ‐ ‐ 28,643 ‐ 34,861 8044 2018 Peterbilt 348 Dump Truck EQ36879 11/28/2017 1.08 120 ‐ 134,593 ‐ 21,310 113,282 23,062 122,595 8046 Sewage Plant 7/1/1953 19.37 600 ‐ 858,755 825,020 ‐ 33,735 ‐ 16,630,897 8057 Super Shredder SS6‐8000 Lower walks in‐line M 1/16/2018 1.05 60 ‐ 17,239 ‐ 5,172 12,067 5,432 12,676 8066 2018 Ford F250 4x2 Crew Cab Pickup Truck EQ 3/14/2018 1.05 60 ‐ 28,508 ‐ 7,602 20,906 7,986 21,960 8099 Triple Seal System Submersible Mixer XRW 30 11/12/2018 1.05 60 ‐ 7,376 ‐ 984 6,393 1,033 6,715 8114 John Deere TE 4x2 Electric Utility Vehicle EQ#6 4/15/2019 1.03 60 ‐ 14,632 ‐ 732 13,900 754 14,317 8122 World Lift WRTD60 Forklift EQ#6882 4/30/2019 1.03 120 ‐ 49,795 ‐ 830 48,965 855 50,434 8137 2019 John Deere 624L Wheel loader EQ#6884 6/27/2019 1.03 84 ‐ 201,464 ‐ ‐ ‐ 201,464 207,508 8139 Boiler Trerice ‐ 3 way Valve Model # 940E‐25K 6/28/2019 1.03 60 ‐ 10,054 ‐ ‐ ‐ 10,054 10,356 8257 Effluent Outfall System 1/1/1986 2.71 360 ‐ 118,275 60,897 ‐ 57,378 ‐ 319,983 8258 Monitoring Wells 7/1/1986 2.71 360 ‐ 3,265 1,629 ‐ 1,636 ‐ 8,833 8277 Outfall To Drying Creek 6/1/1989 2.52 600 ‐ 419,182 101,303 150,905 166,974 635,017 420,411 8281 Industrial Monitoring Manholes 6/1/1989 2.52 600 ‐ 20,625 4,984 7,425 8,216 31,243 20,686 8285 Replace RAS Motor and Drive 6/1/1989 2.52 120 ‐ 13,615 ‐ 13,615 ‐ ‐ 34,281 89‐9623 WWTF Bar Screen and Auger Conveyor 10/31/2010 1.32 480 ‐ 408,681 ‐ 88,072 320,609 116,240 423,149 89‐9636 WWTF Biological Odor Control System 10/16/2018 1.05 240 ‐ 1,255,346 ‐ 47,075 1,208,270 49,449 1,269,194 89‐9642 6 Inch Transfer Line From Digester 1 to Digeste 9/30/2013 1.22 240 ‐ 128,159 ‐ 36,846 91,313 44,846 111,138 89‐9650‐ WWTF Telemetry and SCADA Hardware System 6/5/2015 1.16 120 ‐ 194,295 ‐ 79,337 114,958 91,863 133,107 89‐9658 Digester Mixing Pump and Valves 4/9/2016 1.12 120 ‐ 51,514 ‐ 16,742 34,772 18,817 39,082 89‐9659 Influent Pump Station, 4 Flygt Pumps, and VFD 4/30/2014 1.18 300 ‐ 928,900 ‐ 191,972 736,927 227,469 873,189 89‐9675 Reclamation Area Monitor Well 1/31/2011 1.28 480 ‐ 28,621 ‐ 6,023 22,599 7,716 28,952 89‐9683‐ DAFT ‐ Chain, Drive, and Flights 8/28/2014 1.18 240 ‐ 109,761 ‐ 26,526 83,236 31,430 98,626 89‐9694 WWTF Operations Building Reroof With Polyu 6/30/2011 1.28 240 ‐ 67,377 ‐ 26,951 40,426 34,528 51,791 9015‐10 Land ‐ Grand Ave (APN#251‐350‐016) 6/30/2019 1.03 ‐ ‐ 301,285 ‐ ‐ ‐ 301,285 310,324 9064 Sewer Lift Station /wt cons plt 7/1/1972 6.63 600 ‐ 15,000 8,687 5,411 902 93,446 5,981 9087 Sewage Plant Addition 6/1/1979 3.87 600 ‐ 5,078,995 2,234,488 1,833,697 1,010,810 15,741,386 3,911,218 9088 Sewer Plant Piping 6/1/1981 3.29 600 ‐ 14,809 5,923 5,345 3,541 37,039 11,639 9089 Sewage Plant Expansion 6/1/1981 3.29 600 ‐ 41,736 15,690 15,624 10,423 102,929 34,260 9090 Sewage Plant Expansion 6/1/1983 2.86 600 ‐ 4,080 1,469 1,472 1,139 8,405 3,255 9091 Sewage Plant Expansion 6/1/1987 2.64 600 ‐ 1,893,126 529,991 683,001 680,134 3,198,978 1,793,690 9338 Plant Expansion 6/30/1988 2.57 600 ‐ 51,387 13,360 18,500 19,527 81,921 50,210 9602 Sewer Equipment, Miscellaneous Capital Repa 6/30/1992 2.33 120 ‐ 59,895 53,408 ‐ 6,487 ‐ 139,612 9606‐1 WWTF Grit System Towers and Barscreens 6/30/2009 1.36 600 ‐ 1,002,893 ‐ 200,579 802,314 271,958 1,087,831 9607 Sludge Bed Expansion ‐ Airport 3/31/1997 1.99 360 ‐ 261,266 37,013 156,760 67,494 386,473 134,614 9608 Sewer Manhole, Olive/Wisconsin 6/30/1997 1.99 600 ‐ 1,752 140 631 981 1,537 1,957 9608‐09 Effluent Pipeline & Land Leveling at Reclamati 6/30/2009 1.36 600 ‐ 1,036,610 ‐ 207,322 829,288 281,100 1,124,404 9630 Sludge Pond Paving 6/30/1989 2.52 240 ‐ 37,973 20,324 ‐ 17,649 ‐ 95,609 9631 WWTF Flow meter Rehabilitation 6/30/1993 2.23 240 ‐ 4,951 1,980 ‐ 2,970 ‐ 11,041 9635 Digester Rehabilitation 6/30/1991 2.40 480 ‐ 34,987 8,747 15,744 10,496 58,858 25,225 9638 Lift Station Pump Replacement 6/30/1990 2.46 240 ‐ 36,503 20,077 ‐ 16,426 ‐ 89,637 9639‐1 WWTF Huber Screw Press Sludge Dewatering 6/30/2017 1.08 480 ‐ 4,754,075 ‐ 237,704 4,516,371 257,245 4,887,659 9646 Outfall Pump Drive 6/30/1991 2.40 120 ‐ 14,567 ‐ 14,567 ‐ ‐ 35,008 9648 WWTF Expansion Design 6/30/1994 2.15 240 ‐ 1,227,609 429,663 ‐ 797,945 ‐ 2,637,673 9655 Temporary Sludge Beds 6/30/1993 2.23 60 ‐ 85,604 ‐ 85,604 ‐ ‐ 190,920 9666‐1 Franklin Miller Spirallift Washer Grinder Comp 11/29/2017 1.08 120 ‐ 229,669 ‐ 36,364 193,304 39,354 209,196 9673‐1 Cleaver Brooks Fire tube Boiler Model #CFC‐70 2/16/2018 1.05 120 ‐ 82,790 ‐ 11,728 71,061 12,320 74,644 9673‐2 Cleaver Brooks Fire tube Boiler Model #CFC‐70 2/16/2018 1.05 120 ‐ 82,790 ‐ 11,728 71,061 12,320 74,644 9676 Monitoring Wells 7/1/1995 2.12 600 ‐ 156,904 23,013 54,954 78,937 165,593 167,653 9696 WWTF Expansion From 4MGD to 8MGD 3/31/1996 2.07 600 ‐ 13,487,974 1,416,237 4,855,671 7,216,066 12,967,642 14,919,759 9813 Digester Repair 6/30/2000 1.87 480 ‐ 123,961 3,099 55,782 65,080 109,980 121,558 9814 Digester Repair 6/30/2000 1.87 480 ‐ 1,086,358 27,159 488,861 570,338 963,838 1,065,294 9815 Hydrogen Sulfide Removal System 6/30/2000 1.87 480 ‐ 24,344 609 10,955 12,780 21,599 23,871 City of Porterville
2020 Sewer Rate Study
Usage Forecast
3‐yr average
CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 CY 2022 CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 Retail Usage Summary
Single Family Residential 2,362,076 2,544,313 1,974,167 2,443,120 2,455,336 2,467,613 2,479,951 2,492,350 2,504,812 2,517,336 2,529,923 2,542,573 Multi‐Family Residential 503,318 484,304 405,241 490,570 493,023 495,488 497,966 500,455 502,958 505,472 508,000 510,540 Commercial/Institutional 570,647 606,507 511,233 596,534 599,517 602,514 605,527 608,555 611,597 614,655 617,729 620,817 Industrial 22,068 21,077 12,372 20,730 20,834 20,938 21,043 21,148 21,253 21,360 21,467 21,574 Landscape Irrigation 241,303 279,744 230,431 264,361 265,683 267,012 268,347 269,688 271,037 272,392 273,754 275,123 Other 165,205 180,099 154,814 174,392 175,264 176,140 177,021 177,906 178,796 179,690 180,588 181,491 Total Retail Usage Summary 3,864,617 4,116,044 3,288,258 3,989,708 4,009,657 4,029,705 4,049,854 4,070,103 4,090,453 4,110,906 4,131,460 4,152,117

0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
Single Family Residential
January 104,360 163,949 72,299 134,155 134,825 135,499 136,177 136,858 137,542 138,230 138,921 139,616 February 96,186 126,931 94,284 111,559 112,116 112,677 113,240 113,806 114,375 114,947 115,522 116,100 March 126,077 129,327 56,319 127,702 128,341 128,982 129,627 130,275 130,927 131,581 132,239 132,900 April 178,891 128,599 54,666 153,745 154,514 155,286 156,063 156,843 157,627 158,415 159,207 160,004 May 223,134 232,216 28,462 227,675 228,813 229,957 231,107 232,263 233,424 234,591 235,764 236,943 June 226,588 281,732 207,213 238,511 239,704 240,902 242,107 243,317 244,534 245,756 246,985 248,220 July 277,166 264,395 270,913 270,825 272,179 273,540 274,907 276,282 277,663 279,052 280,447 281,849 August 275,233 349,428 343,943 322,868 324,482 326,105 327,735 329,374 331,021 332,676 334,339 336,011 September 262,691 274,181 295,157 277,343 278,730 280,123 281,524 282,932 284,346 285,768 287,197 288,633 October 229,824 219,989 232,436 227,416 228,553 229,696 230,845 231,999 233,159 234,325 235,496 236,674 November 215,867 231,877 172,573 206,772 207,806 208,845 209,889 210,939 211,994 213,054 214,119 215,189 December 146,059 141,689 145,902 144,550 145,273 145,999 146,729 147,463 148,200 148,941 149,686 150,434 Total Single Family Residential 2,362,076 2,544,313 1,974,167 2,443,120 2,455,336 2,467,613 2,479,951 2,492,350 2,504,812 2,517,336 2,529,923 2,542,573 Multi‐Family Residential
January 30,905 39,700 26,296 35,303 35,479 35,656 35,835 36,014 36,194 36,375 36,557 36,740 February 30,425 30,437 30,619 30,431 30,583 30,736 30,890 31,044 31,199 31,355 31,512 31,670 March 37,344 31,693 19,066 34,519 34,691 34,865 35,039 35,214 35,390 35,567 35,745 35,924 April 43,309 30,310 17,684 36,810 36,994 37,179 37,364 37,551 37,739 37,928 38,117 38,308 May 46,269 41,871 8,619 44,070 44,290 44,512 44,734 44,958 45,183 45,409 45,636 45,864 June 43,072 47,888 38,790 43,250 43,466 43,684 43,902 44,122 44,342 44,564 44,787 45,011 July 48,970 41,754 41,582 44,102 44,323 44,544 44,767 44,991 45,216 45,442 45,669 45,897 August 47,067 53,884 54,651 51,867 52,127 52,387 52,649 52,912 53,177 53,443 53,710 53,979 September 50,331 46,727 48,850 48,636 48,879 49,124 49,369 49,616 49,864 50,113 50,364 50,616 October 43,521 40,209 43,386 42,372 42,584 42,797 43,011 43,226 43,442 43,659 43,877 44,097 November 46,164 45,564 40,935 44,221 44,442 44,664 44,888 45,112 45,338 45,564 45,792 46,021 December 35,941 34,267 34,763 34,990 35,165 35,341 35,518 35,695 35,874 36,053 36,234 36,415 Total Multi‐Family Residential 503,318 484,304 405,241 490,570 493,023 495,488 497,966 500,455 502,958 505,472 508,000 510,540 Commercial/InstitutionalJanuary 31,288 42,385 27,333 36,837 37,021 37,206 37,392 37,579 37,767 37,956 38,145 38,336 February 32,707 37,287 35,638 34,997 35,172 35,348 35,525 35,702 35,881 36,060 36,240 36,422 March 42,149 36,840 21,482 39,495 39,692 39,890 40,090 40,290 40,492 40,694 40,898 41,102 April 47,645 38,652 19,332 43,149 43,364 43,581 43,799 44,018 44,238 44,459 44,682 44,905 May 51,331 55,719 3,001 53,525 53,793 54,062 54,332 54,604 54,877 55,151 55,427 55,704 June 47,919 58,907 52,303 53,043 53,308 53,575 53,843 54,112 54,382 54,654 54,928 55,202 July 52,405 50,231 53,566 52,067 52,328 52,589 52,852 53,117 53,382 53,649 53,917 54,187 August 53,170 72,589 73,512 66,424 66,756 67,090 67,425 67,762 68,101 68,441 68,784 69,128 September 57,967 61,162 69,296 62,808 63,122 63,438 63,755 64,074 64,394 64,716 65,040 65,365 October 55,398 54,983 55,513 55,298 55,574 55,852 56,132 56,412 56,694 56,978 57,263 57,549 November 57,959 60,523 59,036 59,173 59,469 59,766 60,065 60,365 60,667 60,970 61,275 61,581 City of Porterville
2020 Sewer Rate Study
Usage Forecast
3‐yr average
CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 CY 2022 CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 December 40,709 37,229 41,221 39,720 39,918 40,118 40,318 40,520 40,723 40,926 41,131 41,337 Total Commercial/Institutional 570,647 606,507 511,233 596,534 599,517 602,514 605,527 608,555 611,597 614,655 617,729 620,817 IndustrialJanuary 1,140 1,519 700 1,330 1,336 1,343 1,350 1,356 1,363 1,370 1,377 1,384 February 1,271 1,363 944 1,317 1,324 1,330 1,337 1,344 1,350 1,357 1,364 1,371 March 2,065 1,634 6 1,850 1,859 1,868 1,877 1,887 1,896 1,906 1,915 1,925 April 1,482 1,484 20 1,483 1,490 1,498 1,505 1,513 1,520 1,528 1,536 1,543 May 2,681 2,053 3 2,367 2,379 2,391 2,403 2,415 2,427 2,439 2,451 2,463 June 1,753 1,949 1,370 1,691 1,699 1,708 1,716 1,725 1,733 1,742 1,751 1,759 July 1,416 2,027 1,846 1,763 1,772 1,781 1,790 1,799 1,808 1,817 1,826 1,835 August 2,528 2,505 2,634 2,556 2,568 2,581 2,594 2,607 2,620 2,633 2,646 2,660 September 1,833 1,814 1,448 1,698 1,707 1,715 1,724 1,733 1,741 1,750 1,759 1,767 October 2,100 1,819 1,346 1,755 1,764 1,773 1,781 1,790 1,799 1,808 1,817 1,826 November 2,348 1,825 1,177 1,783 1,792 1,801 1,810 1,819 1,828 1,838 1,847 1,856 December 1,451 1,085 878 1,138 1,144 1,149 1,155 1,161 1,167 1,173 1,178 1,184 Total Industrial 22,068 21,077 12,372 20,730 20,834 20,938 21,043 21,148 21,253 21,360 21,467 21,574 Landscape IrrigationJanuary 3,907 11,024 2,441 7,466 7,503 7,540 7,578 7,616 7,654 7,692 7,731 7,769 February 2,821 8,051 3,927 5,436 5,463 5,490 5,518 5,546 5,573 5,601 5,629 5,657 March 3,712 10,898 959 7,305 7,342 7,378 7,415 7,452 7,489 7,527 7,565 7,602 April 14,739 8,463 1,587 11,601 11,659 11,717 11,776 11,835 11,894 11,953 12,013 12,073 May 19,707 22,096 2,189 20,902 21,006 21,111 21,217 21,323 21,429 21,536 21,644 21,752 June 21,709 33,341 23,247 26,099 26,229 26,361 26,492 26,625 26,758 26,892 27,026 27,161 July 34,450 32,246 29,950 32,215 32,376 32,538 32,701 32,864 33,029 33,194 33,360 33,527 August 31,840 41,229 46,287 39,785 39,984 40,184 40,385 40,587 40,790 40,994 41,199 41,405 September 32,614 36,851 43,555 37,673 37,862 38,051 38,241 38,432 38,625 38,818 39,012 39,207 October 30,724 30,584 36,965 32,758 32,921 33,086 33,251 33,418 33,585 33,753 33,922 34,091 November 30,561 31,425 23,349 28,445 28,587 28,730 28,874 29,018 29,163 29,309 29,456 29,603 December 14,519 13,536 15,975 14,677 14,750 14,824 14,898 14,972 15,047 15,123 15,198 15,274 Total Landscape Irrigation 241,303 279,744 230,431 264,361 265,683 267,012 268,347 269,688 271,037 272,392 273,754 275,123 OtherJanuary 954 3,678 924 2,316 2,328 2,339 2,351 2,363 2,374 2,386 2,398 2,410 February 979 2,709 1,352 1,844 1,853 1,862 1,872 1,881 1,891 1,900 1,910 1,919 March 1,593 2,972 359 2,283 2,294 2,305 2,317 2,328 2,340 2,352 2,364 2,375 April 5,225 3,205 1,095 4,215 4,236 4,257 4,279 4,300 4,321 4,343 4,365 4,387 May 16,940 15,728 203 16,334 16,416 16,498 16,580 16,663 16,746 16,830 16,914 16,999 June 21,425 23,528 19,888 21,614 21,722 21,830 21,939 22,049 22,159 22,270 22,382 22,493 July 25,099 25,788 25,741 25,543 25,670 25,799 25,928 26,057 26,188 26,319 26,450 26,582 August 27,152 32,166 30,578 29,965 30,115 30,266 30,417 30,569 30,722 30,876 31,030 31,185 September 23,881 26,932 27,644 26,152 26,283 26,415 26,547 26,679 26,813 26,947 27,082 27,217 October 18,071 21,069 22,189 20,443 20,545 20,648 20,751 20,855 20,959 21,064 21,169 21,275 November 19,717 16,272 14,553 16,847 16,932 17,016 17,101 17,187 17,273 17,359 17,446 17,533 December 4,169 6,052 10,288 6,836 6,871 6,905 6,939 6,974 7,009 7,044 7,079 7,115 Total Other 165,205 180,099 154,814 174,392 175,264 176,140 177,021 177,906 178,796 179,690 180,588 181,491 City of Porterville
2020 Sewer Rate Study
Capital Costs Allocation
Estimated ALLOCATION PERCENTAGES ALLOCATION AMOUNTS
Costs Flow BOD TSS Flow BOD TSS
CAPITAL COSTS ALLOCATIONPhase III ‐ Putnam/RR to Plano $0 100% $0 $0 $0 Phase IV ‐ Baker/Murry 46,000 100% 46,000 0 0Phase V ‐ Murry/Harrison to Putnam 118,000 100% 118,000 0 0 Phase VI ‐ Roche/Alley/Henrahan 85,000 100% 85,000 0 0
*Area 1 (456A & 457) Poplar/Brown/Wisconsin/Jaye St 1,200,000 100% 1,200,000 0 0 *Area 5 (456B & 456C) Olive/Center/Cloverleaf/Jaye St 1,755,000 100% 1,755,000 0 0>Annexation 474 ‐ Beverly Grand Area Boyles/Beverly/Prospect/Maston Sts 1,500,000 100% 1,500,000 0 0 >Annexation 475 ‐ Westfield/Jaye Area Villa/Woods/Jaye/Mulberry 1,550,000 100% 1,550,000 0 0 >Annexation 476 ‐ Akin/Ponca Area Yates/Worth/3rd/4th/Lincoln/Gibbons 3,050,000 100% 3,050,000 0 0 >Annexation 478 ‐ Cobb/Dogwood Areas Cobb/Dogwood/Elderwood/Putnam/Thurman/Harrison 2,580,000 100% 2,580,000 0 0 >Annexation 479 ‐ Roby Island Area Atkins/Lucy/Waukesha/Maston/Cobb/ Slaughter/Roby 2,420,000 100% 2,420,000 0 0 Lift Station Upgrade 769,740 100% 769,740 0 0
Main St. @ SR 190 Casing (Poplar conn) 58,853 100% 58,853 0 0 Main St. @ SR 190 Vandalia Ave Pipe (Poplar conn) 85,698 100% 85,698 0 0 Mathew St Capacity Analysis ‐ Lift St. No. 11 Mulberry to Henderson 0 100% 0 00 Mulberry (Los Robles east) 91,000 100% 91,000 0 0
Newcomb ‐ Henderson south to Grand Ave. ‐ Pipe 396,000 100% 396,000 0 0 Hwy 190 ‐ Jaye St. to E. St. ‐ Pipe 352,000 100% 352,000 0 0 Hwy 190 ‐ E. St. to Main St. ‐ Pipe 151,000 100% 151,000 0 0 Vandalia Ave. ‐ Main St. to Plano St. ‐ Pipe 361,000 100% 361,000 0 0 Blower Building Floor Coating/Noise Attenuation 0 50% 50% 0 00 Canopy for dewatering equipment 0 50% 50% 0 00Digester #2 and #3 Repairs, incl wastegas flare replacement and piping 0 50% 50% 0 00Digester Cleaning/Coating/Equipment Replacement 840,840 50% 50% 0 420,420 420,420Effluent Outfall Pump Replacement 600,000 50% 50% 0 300,000 300,000 Emergency Generator for WWTF (200kW) 0 50% 50% 0 00Manhole 10A Inspection/Repair 0 50% 50% 0 00Reclamation Area Pipeline Installation 0 100% 0 00 Septic Station Retrofit 0 50% 50% 0 00
Sludge/Grit Staging Area 0 50% 50% 0 00
Sludge Line ‐ Westwood Bridge over Tule River 30,000 50% 50% 0 15,000 15,000 WAS Pump Replacement 0 50% 50% 0 00
Wastewater Needs Assessment and Master Plan 0 34% 33% 33% 0 00 Digester #1 and #4 Repairs 0 50% 50% 0 00
Digester Design 0 50% 50% 0 00Digester Construction 1,500,000 50% 50% 0 750,000 750,000 Odor Control Project ‐ Phase 2 0 50% 50% 0 00
Odor Control Design 250,000 50% 50% 0 125,000 125,000
Odor ControlConstruction 1,750,000 50% 50% 0 875,000 875,000Office Building ‐ Design 0 34% 33% 33% 0 00 Office Building ‐ Relocation to temp structure 0 34% 33% 33% 0 00 Office Building ‐ Remediation and Demolition 0 34% 33% 33% 0 00 Office Building ‐ Construction 700,000 34% 33% 33% 238,000 231,000 231,000 Plant #2 Evaluation & Repairs 0 34% 33% 33% 0 00
Plant #2 ‐ Evaluation 0 34% 33% 33% 0 00
Plant #2 ‐ Design 0 34% 33% 33% 0 00
Plant #2 ‐ Construction 400,000 34% 33% 33% 136,000 132,000 132,000 Plant #1 ‐ Evaluation 25,000 34% 33% 33% 8,500 8,250 8,250 Plant #1 ‐ Design incl re‐asphalt 125,000 34% 33% 33% 42,500 41,250 41,250 Plant #1 ‐ Construction incl asphalt repairs 600,000 34% 33% 33% 204,000 198,000 198,000 Tertiary Treatment ‐ Design 4,585,000 50% 50% 0 2,292,500 2,292,500 Tertiary Treatment ‐ Nitrification/De‐nitrification Project ‐ Consultant Services ‐ Plant Expansion 60,200,000 50% 50% 0 30,100,000 30,100,000 City of Porterville
2020 Sewer Rate Study
Capital Costs Allocation
Estimated ALLOCATION PERCENTAGES ALLOCATION AMOUNTS
Costs Flow BOD TSS Flow BOD TSS
Tertiary Treatment ‐ Nitrification/De‐nitrification Project ‐ Construction 0 50% 50% 0 00 Tertiary Treatment ‐ Construction / Sludge bed Relocation 12,500,000 50% 50% 0 6,250,000 6,250,000 MASTER PLANS ‐ Sewer Master Plan Payback 1,999,223 34% 33% 33% 679,736 659,744 659,744 MASTER PLANS ‐ Master Plan Update 0 34% 33% 33% 0 00
MASTER PLANS ‐ Comprehensive Impact Fee Study 0 34% 33% 33% 0 00 MASTER PLANS ‐ Comprehensive Impact Fee Study 0 34% 33% 33% 0 00 STORMWATER ‐ Programmed Capital Project Budget 14,588,504 100% 14,588,504 0 0TOTAL $117,262,858 27.7% 36.2% 36.2% $32,466,531 $42,398,164 $42,398,164OVERALL COST ALLOCATION 2021/22 through 2030/31 Expenses
O&M $62,296,828 50% 25% 25% 31,148,414 15,574,207 15,574,207 Existing ‐ Debt Service 60,445,012 34% 33% 33% 20,551,304 19,946,854 19,946,854 Capital Costs 117,262,858 28% 36% 36% 32,466,531 42,398,164 42,398,164 Fixed Assets ‐ WWTP $17,594,180 34% 33% 33% 5,982,021 5,806,079 5,806,079 TOTAL $257,598,878 35.0% 32.5% 32.5% 90,148,270 83,725,304 83,725,304 City of Porterville
2020 Sewer Rate Study
Capital Costs Allocation
Customer Dwelling Flow BOD TSS BOD TSS Usage
Classification Accounts Units MGD mg/L mg/L lb/Day lb/Day (HCF/Mo)

RESIDENTIAL CUSTOMER CLASSES
Single Family Residential ‐ Units 11,804 39,779 3.0153 250 175 6,287 4,401 120,934 Multifamily Residential ‐ Units 656 7,675 1.0669 250 175 2,224 1,557 42,788 Trailer Park ‐ Spaces 263 1,178 0.1638 250 175 341 239 6,569 48,633

COMMERCIAL CUSTOMER CLASSES
Car Wash, Laundry, Packing House 23 0.0278 100 150 23 35 1,115Bars, Hotels w/o Dining 13 0.0164 200 200 27 27 659Stores, Offices, Markets 695 0.6105 150 150 764 764 24,487Hospital, Rest Homes 27 0.0202 250 100 42 17 811 Multi‐Unit with Cons 4 0.0013 250 150 3 2 51Mortuaries 2 0.0025 800 800 17 17 101 Service Stations and Auto Repairs 63 0.0695 180 280 104 162 2,788Restaurants 98 0.0834 800 600 557 417 3,346Churches 61 0.0746 150 150 93 93 2,991Schools 51 0.0518 130 100 56 43 2,079City of Porterville 23 0.0215 150 150 27 27 862 State Hospital 1 0.0013 250 100 3 1 51PVPUD 1 2,544Industrial 15 0.0215 150 100 27 18 862Septic Tanks 7 0.0114 5,400 12,000 512 1,139 456 TOTALS 13,807 51,177 5.2597 11,108 8,959 210,950
City of Porterville
2020 Sewer Rate Study
Capital Costs Allocation
Customer Dwelling COST ALLOCATION Total Revenue Projected Projected Monthly Classification Accounts Units Flow BOD TSS Requirement Annual Water Use (HCF) Rates ($/HCF) Flat Rate

RESIDENTIAL CUSTOMER CLASSES
Single Family Residential ‐ per unit 11,804 39,779 $1,905,248 $1,746,947 $1,516,201 $5,168,396 1,471,362 $3.51 $36.50Multifamily Residential ‐ per unit 656 7,675 674,105 618,096 536,455 1,828,656 520,590 3.51 19.90Trailer Park ‐ per space 263 1,178 103,484 94,886 82,353 280,722 79,917 3.51 19.90COMMERCIAL CUSTOMER CLASSESCar Wash, Laundry, Packing House 23 $17,572 $6,445 $11,986 $36,002 13,570 $2.66 Bars, Hotels w/o Dining 13 10,383 7,616 9,443 27,443 8,019 3.43 Stores, Offices, Markets 695 385,775 212,234 263,144 861,153 297,922 2.90 Hospital, Rest Homes 27 12,779 11,718 5,811 30,308 9,869 3.08 Multi‐Unit with Cons 4 799 732 545 2,076 617 3.37Mortuaries 2 1,597 4,687 5,811 12,096 1,234 9.81Service Stations and Auto Repairs 63 43,929 29,001 55,934 128,864 33,925 3.80 Restaurants 98 52,715 154,671 143,830 351,216 40,710 8.63 Churches 61 47,124 25,925 32,144 105,193 36,392 2.90Schools 51 32,747 15,614 14,892 63,252 25,289 2.51City of Porterville 23 13,578 7,470 9,262 30,310 10,486 2.90 State Hospital 1 799 732 363 1,894 617 3.08Industrial ‐ per hcf 15 13,578 7,470 6,175 27,222 10,486 2.60Septic Tanks ‐ per 1,000 gallons 7 7,188 142,368 392,264 541,820 5,551 97.61 130.49 4,152
TOTALS 13,806 48,633 $3,323,400 $3,086,611 $3,086,611 $9,496,622 2,566,555Allocation percentages 35.0% 32.5% 32.5%Annual cost requirements $3,323,400 $3,086,611 $3,086,611 $9,496,622 City of Porterville
2020 Sewer Rate Study
Capital Costs Allocation
Customer Revenue Under 2028 Test Year
Classification Existing Rates Cost of Service Change

RESIDENTIAL CUSTOMER CLASSES
Single Family Residential ‐ per unit $3,806,082 $8,753,846 130.0% Multifamily Residential ‐ per unit 2,350,453 3,099,246 31.9% Trailer Park ‐ per space 360,824 475,773 31.9%RESIDENTIAL SUBTOTAL $6,517,359 $12,328,865 89.2%COMMERCIAL CUSTOMER CLASSES Car Wash, Laundry, Packing House $13,027 $61,065 368.8% Bars, Hotels w/o Dining 9,783 46,508 375.4%
Stores, Offices, Markets 309,839 1,459,818 371.2%
Hospital, Rest Homes 10,757 51,319 377.1%
Multi‐Unit with Cons 734 3,516 379.0%Mortuaries 2,406 20,478 751.3%Service Stations and Auto Repairs 46,138 218,137 372.8% Restaurants 120,908 594,771 391.9%Churches 15,285 178,321 1066.7%Schools 7,587 107,227 1,313.3% City of Porterville 8,703 51,381 490.4%
State Hospital 672 3,207 377.1%COMMERCIAL SUBTOTAL $545,839 $2,795,749 412.2%Industrial ‐ per hcf $9,752 $46,138 373.1%Septic Tanks ‐ per 1,000 gallons $94,260 $917,058 872.9%Porter Vista $200,052 $448,488 124.2% TOTALS $7,367,262 $16,536,299 124.4%
City of Porterville
2020 Sewer Rate Study
Rate Design: Alternative 1 Rates ‐ Existing Rate Structure Description Existing Rates 2023/24 2024/25 2025/26 2026/27 2027/2028 5‐Year
Cumulative
Increase
Revenue Increase 32.5% 32.5% 8.5% 8.5% 8.5% 124.2%RESIDENTIAL Single Family Residential ‐ per unit $26.87 $30.20 $39.95 $43.35 $47.00 $51.00 89.8% Multifamily Residential ‐ per unit 25.52 28.69 37.96 41.18 44.65 48.45 89.9% Trailer Park ‐ per space 25.52 28.69 37.96 41.18 44.65 48.45 89.9% COMMERCIAL ‐ per hcf
Car Wash, Laundry, Packing House $0.96 $2.66 $3.52 $3.82 $4.14 $4.50 368.8%Bars, Hotels w/o Dining 1.22 3.43 4.54 4.93 5.34 5.80 375.4% Stores, Offices, Markets 1.04 2.90 3.83 4.16 4.51 4.90 371.2%Hospital, Rest Homes 1.09 3.08 4.07 4.42 4.80 5.20 377.1%Multi‐Unit with Cons 1.19 3.37 4.46 4.84 5.25 5.70 379.0%Mortuaries 1.95 9.81 13.00 14.10 15.30 16.60 751.3% Service Stations and Auto Repairs 1.36 3.80 5.04 5.47 5.93 6.43 372.8% Restaurants 2.97 8.63 11.44 12.41 13.46 14.61 391.9%
Churches 0.42 2.90 3.83 4.16 4.51 4.90 1,066.7%
Schools 0.30 2.51 3.32 3.60 3.91 4.24 1,313.3%
City of Porterville 0.83 2.90 3.83 4.16 4.51 4.90 490.4%State Hospital 1.09 3.08 4.07 4.42 4.80 5.20 377.1% Industrial ‐ per hcf $0.93 $2.60 $3.44 $3.74 $4.05 $4.40 373.1% Septic Tanks ‐ per 1,000 gallons $22.70 $130.50 $172.90 $187.60 $203.55 $220.85 872.9% REVENUE RECOVERED FROM RATES $7,167,210 $9,548,698 $12,632,662 $13,707,949 $14,863,322 $16,130,383 ACTUAL COST OF SERVICE $9,496,622 $12,583,023 $13,652,580 $14,813,050 $16,072,159 VARIANCE ‐ $ $52,077 $49,639 $55,369 $50,272 $58,224
VARIANCE ‐ % 0.5% 0.4% 0.4% 0.3% 0.4%
City of Porterville
2020 Sewer Rate Study
Rate Design: Alternative 2 Rates ‐ Cost of Service
Description Existing Rates 2023/24 2024/25 2025/26 2026/27 2027/2028 5‐Year
Cumulative
Increase
Revenue Increase 32.5% 32.5% 8.5% 8.5% 8.5% 124.2%RESIDENTIAL Single Family Residential ‐ per unit $26.87 $36.50 $48.35 $52.50 $56.95 $61.80 130.0% Multifamily Residential ‐ per unit 25.52 19.90 26.35 28.55 31.00 33.65 31.9% Trailer Park ‐ per space 25.52 19.90 26.35 28.55 31.00 33.65 31.9% COMMERCIAL ‐ per hcf
Car Wash, Laundry, Packing House $0.96 $2.66 $3.52 $3.82 $4.14 $4.50 368.8%Bars, Hotels w/o Dining 1.22 3.43 4.54 4.93 5.34 5.80 375.4% Stores, Offices, Markets 1.04 2.90 3.83 4.16 4.51 4.90 371.2%Hospital, Rest Homes 1.09 3.08 4.07 4.42 4.80 5.20 377.1%Multi‐Unit with Cons 1.19 3.37 4.46 4.84 5.25 5.70 379.0%Mortuaries 1.95 9.81 13.00 14.10 15.30 16.60 751.3% Service Stations and Auto Repairs 1.36 3.80 5.04 5.47 5.93 6.43 372.8% Restaurants 2.97 8.63 11.44 12.41 13.46 14.61 391.9%
Churches 0.42 2.90 3.83 4.16 4.51 4.90 1,066.7%
Schools 0.30 2.51 3.32 3.60 3.91 4.24 1,313.3%
City of Porterville 0.83 2.90 3.83 4.16 4.51 4.90 490.4%State Hospital 1.09 3.08 4.07 4.42 4.80 5.20 377.1% Industrial ‐ per hcf $0.93 $2.60 $3.44 $3.74 $4.05 $4.40 373.1% Septic Tanks ‐ per 1,000 gallons $22.70 $130.50 $172.90 $187.60 $203.55 $220.85 872.9% REVENUE RECOVERED FROM RATES $7,167,210 $9,507,220 $12,589,044 $13,662,201 $14,822,526 $16,087,810 ACTUAL COST OF SERVICE $9,496,622 $12,583,023 $13,652,580 $14,813,050 $16,072,159 VARIANCE ‐ $ $10,598 $6,021 $9,621 $9,476 $15,651
VARIANCE ‐ % 0.1% 0.0% 0.1% 0.1% 0.1%
City of Porterville
2020 Sewer Rate Study
Rate Design: Alternative 3 Rates ‐ Residential Consolidation Description Existing Rates 2023/24 2024/25 2025/26 2026/27 2027/2028 5‐Year
Cumulative
Increase
Revenue Increase 32.5% 32.5% 8.5% 8.5% 8.5% 124.2%RESIDENTIAL Single Family Residential ‐ per unit $26.87 $29.55 $39.10 $42.40 $46.00 $49.90 85.7% Multifamily Residential ‐ per unit 25.52 29.55 39.10 42.40 46.00 49.90 95.5% Trailer Park ‐ per space 25.52 29.55 39.10 42.40 46.00 49.90 95.5% COMMERCIAL ‐ per hcf
Car Wash, Laundry, Packing House $0.96 $2.66 $3.52 $3.82 $4.14 $4.50 368.8%Bars, Hotels w/o Dining 1.22 3.43 4.54 4.93 5.34 5.80 375.4% Stores, Offices, Markets 1.04 2.90 3.83 4.16 4.51 4.90 371.2%Hospital, Rest Homes 1.09 3.08 4.07 4.42 4.80 5.20 377.1%Multi‐Unit with Cons 1.19 3.37 4.46 4.84 5.25 5.70 379.0%Mortuaries 1.95 9.81 13.00 14.10 15.30 16.60 751.3% Service Stations and Auto Repairs 1.36 3.80 5.04 5.47 5.93 6.43 372.8% Restaurants 2.97 8.63 11.44 12.41 13.46 14.61 391.9%
Churches 0.42 2.90 3.83 4.16 4.51 4.90 1,066.7%
Schools 0.30 2.51 3.32 3.60 3.91 4.24 1,313.3%
City of Porterville 0.83 2.90 3.83 4.16 4.51 4.90 490.4%State Hospital 1.09 3.08 4.07 4.42 4.80 5.20 377.1% Industrial ‐ per hcf $0.93 $2.60 $3.44 $3.74 $4.05 $4.40 335.5% Septic Tanks ‐ per 1,000 gallons $22.70 $130.50 $172.90 $187.60 $203.55 $220.85 796.7% REVENUE RECOVERED FROM RATES $7,167,210 $9,547,994 $12,633,376 $13,702,998 $14,865,100 $16,128,620 ACTUAL COST OF SERVICE $9,496,622 $12,583,023 $13,652,580 $14,813,050 $16,072,159 VARIANCE ‐ $ $51,373 $50,353 $50,418 $52,050 $56,461
VARIANCE ‐ % 0.5% 0.4% 0.4% 0.4% 0.4%
Item No.

15. CITY COUNCIL AGENDA – NOVEMBER 21, 2023
SUBJECT: Public Hearing and Consideration of Establishing New Solid Waste Rates SOURCE: Public Works
COMMENT: At its meeting on September 19, 2023, the City Council approved setting a Public Hearing for November 21, 2023, to conduct a protest hearing and consider a Solid Waste rate increase. In accordance with Proposition 218 legal requirements, the City must provide, at minimum, a 45-day notice for a protest hearing on proposed fee increases. To comply with Proposition 218 legal requirements, the City mailed the record owner of the property subject to the proposed rates or the tenant directly liable for the payment of Solid Waste service fees a Notice of Public Hearing on September 29, 2023. On October 6, 2023, an amended Notice of Public Hearing was mailed, which included the 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the effective date or the date of adoption, whichever is later.

Written protests may be submitted by mail to the City Clerk, City of Porterville, 291 North Main Street, Porterville, CA 93257, or in person at the Public Hearing, as long as they are received prior to the conclusion of public testimony at the Public Hearing. Please identify on the front of the envelope "Solid Waste Rate Protest" for any protest, whether mailed or submitted in person to the City Clerk. Protests submitted verbally or by e-mail, facsimile, or other electronic means will not be accepted.

Each protest must (1) be in writing; (2) state opposition to the proposed Solid Waste rate increase; (3) provide the location of the owner's identified parcel (by assessor's parcel number or street address); and (4) include the original signature of the property owner or customer of record submitting the protest.

Only one written protest per parcel will be counted.

Item No.

15. At the conclusion of the Public Hearing, the Council will consider adopting the proposed Solid Waste rate increases, which are outlined on the reverse side of the Notice. If, at the close of the Public Hearing, written protests against the proposed Solid Waste rate increases are submitted by a majority of record owners of affected parcels and customers of record (50% plus one), the Council cannot approve the proposed Solid Waste rates. If, at the close of the Public Hearing, written protests against the proposed Solid Waste rate increases do not present a majority of record owners of affected parcels and customers of record, the Council is authorized to impose rate increases up to the amounts proposed.

If adopted, new Solid Waste rates will be effective January 1, 2024." Pursuant to California Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the date of adoption."
The City is committed to providing high-quality, reliable solid waste service at the lowest possible rate for its residents. The City’s residential rates, which are among the lowest, if not the lowest, in the region have not increased since 2006.

Since that time, costs have increased significantly due to both inflation and the need for the City to respond to new solid waste management regulations, including but not limited to AB 341 (mandatory commercial recycling), AB 1826 (mandatory commercial organic recycling) and SB 1383 (which establishes more comprehensive mandatory residential and commercial recycling and organics recovery). It is critically important for the City to continually maintain, repair, and improve the assets it holds and keep pace with ever-increasing operating costs and regulations.

The City’s Public Works Department/Refuse Division is projecting a substantial revenue shortfall resulting from the lack of rate increases over the past seventeen (17) years and the reduction in recycling revenue due to international countries restricting the receipt of materials (e.g. China's 2018 "National Sword"). To address that revenue shortfall, a rate increase is necessary. In addition, the City needs to replace a significant number of its refuse vehicles, upgrade its recyclable materials and green waste transfer stations, and make improvements to both its administrative and maintenance facilities.

Furthermore, the City needs to initiate residential organic collection services to all residential accounts, commercial accounts, and organic waste collection services, with a comprehensive review of all accounts. This will require additional vehicles and drivers, as well as administrative and analytical support staff to manage the City’s compliance with SB 1383 and support the operation of City Solid Waste services that are in line with industry standards for safety, customer service, operational compliance, and operational performance.

During its Study Session on August 29, 2023, it was the Council’s recommendation for a fifty percent (50%) initial rate increase effective January 1, 2024, followed by a five percent (5%) rate increase on July 1, 2024, and a five percent (5%) increase in each of the following three fiscal years, resulting Item No.

15. in a five year cumulative rate increase of eighty-two percent (82%). After the five years, no further automatic adjustments would take place without a new notice and hearing pursuant to Proposition 218.

RECOMMENDATION: That the City Council:

1. Conduct a Public Hearing to consider the adoption of an increase in solid waste rates for services;

2. Receive any additional written protests;

3. Direct the City Clerk to tally the protests and report the total; and

4. Consider approval of the attached draft Resolution if the tally does not exceed a majority protest as determined by the City Clerk.

ATTACHMENTS: 1. Draft Resolution

2. Proposition 218 Notice of Public Hearing Increases To Solid Waste Rates

3. Solid Waste Rate Study and Financial Plan

4. Solid Waste Rate Scenarios
Appropriated/Funded:

Review By:

Department Director:

Michael Knight, Public Works Director
Final Approver: John Lollis, City Manager

Page 1 of 3 ends

RESOLUTION NO. ___-2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTERVILLE

CONCERNING SOLID WASTE USER FEE INCREASES THROUGH AND
INCLUDING FISCAL YEARS 2023/24 THROUGH 2027/28
WHEREAS: The City of Porterville, through Municipal Code Chapter 25, is empowered to provide Residential and Commercial Solid Waste collection service; and WHEREAS: By Chapter 25, the City Council of the City of Porterville may establish rates necessary to operate said Solid Waste collection. The charges by the City for its Solid Waste collection are to be collected monthly by the finance department for the use and benefit of the City and shall be fixed by resolution of the City Council; and WHEREAS, the City performed a Solid Waste Study Review completed by R3 Consulting Group in 2023 the “Study” determined that current Solid Waste rates are insufficient to support current and future operations. R3 Consulting Group recommended the adoption of rate structure modifications as well as a plan of annual rate adjustments for Fiscal Year (“FY”) 2023/224 through FY 2027/28 that are sufficient for the immediate and future operating needs of the Solid Waste collection; and
WHEREAS, the Study determined the need for an annual Solid Waste rate increase of fifty percent (50%) for FY 2023/24, followed by four (4) subsequent annual rate increases of five percent (5%) for FY 2024/25, 2025/26, 2026/27 and 2027/28, for all residential, commercial and miscellaneous rates. Proposed rates are as follows:

Page 2 of 3 ends

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Commercial Bin Service per Empty 1 Current Rates 50% 5% 5% 5% 5% 2 Yd Bin
Trash $49.60 $74.40 $78.12 $82.03 $86.13 $90.43
Recycling $37.20 $55.80 $58.59 $61.52 $64.60 $67.83
Organics $37.20 $55.80 $58.59 $61.52 $64.60 $67.83
3 Yd Bin
Trash $74.40 $111.60 $117.18 $123.04 $129.19 $135.65
Recycling $55.80 $83.70 $87.89 $92.28 $96.89 $101.74
Organics $55.80 $83.70 $87.89 $92.28 $96.89 $101.74
4 Yd Bin
Trash $99.20 $148.80 $156.24 $164.05 $172.25 $180.87
Recycling $74.40 $111.60 $117.18 $123.04 $129.19 $135.65 Organics $74.40 $111.60 $117.18 $123.04 $129.19 $135.65 6 Yd Bin
Trash $148.80 $223.20 $234.36 $246.08 $258.38 $271.30
Recycling $111.60 $167.40 $175.77 $184.56 $193.79 $203.48 Organics $111.60 $167.40 $175.77 $184.56 $193.79 $203.48 1 Commercial Recycle and Organic Service is required unless an approved waiver is on file with the City FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Temp Bin Rentals Current Rates 50% 5% 5% 5% 5%
3 Yard Bin
Deposit $32.10 $48.15 $50.56 $53.09 $55.74 $58.53
Empty Fee $32.10 $48.15 $50.56 $53.09 $55.74 $58.53
Monthly Rental Fee No Fee $22.47 $23.59 $24.77 $26.01 $27.31 4 Yard Bin
Deposit $42.80 $64.20 $67.41 $70.78 $74.32 $78.04
Empty Fee $42.80 $64.20 $67.41 $70.78 $74.32 $78.04
Monthly Rental Fee No Fee $29.96 $31.46 $33.03 $34.68 $36.42 10/15 Roll off
Deposit $200.00 $300.00 $315.00 $330.75 $347.29 $364.65 Empty Fee Plus Tonnage Fee 2 $162.00 $243.00 $255.15 $267.91 $281.30 $295.37 Monthly Rental Fee No Fee $113.40 $119.07 $125.02 $131.27 $137.84 30 Yard Roll off
Deposit $200.00 $300.00 $315.00 $330.75 $347.29 $364.65 Empty Fee Plus Tonnage Fee 2 $162.00 $243.00 $255.15 $267.91 $281.30 $295.37 Monthly Rental Fee No Fee $113.40 $119.07 $125.02 $131.27 $137.84 2 Landfill fees are set by County and subject to change. Current rates are: General trash $28/ton, C&D $39/ton Green waste $29/ton
Proposed Rate Adjustment per Fiscal Year (FY)
Proposed Rate Adjustment per Fiscal Year (FY)
Resolution No. __-2023

Page 3 of 3 ends

NOW, THEREFORE, BE IT RESOLVED: That the City Council of the City of Porterville does hereby approve an increase in Solid Waste fees as proposed. The following rates shall be implemented as the rates of Solid Waste pursuant to Chapter 25–15 for all Solid Waste bills generated after January 1, 2024.

PASSED, APPROVED AND ADOPTED this 21st day of November, 2023. ____________________________________
Martha Flores, Mayor
ATTEST:

John D. Lollis, City Clerk
By: __________________________________
Patrice Hildreth, Chief Deputy City Clerk
Miscellaneous Rates
Customer Type
All
All
All
All
Commercial
Commercial
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Recycling Collection
Residential
Residential
Residential
Residential
Residential
Residential
Residential
Residential
Residential
3 Service approval provided at the discretion of the Public Works Director Description of Service Current Rate Proposed Rate
Special Pickup of Large/Bulky Items $55 per hour + Landfill Fee $88 per hour + Landfill Fee Inaccessable Fee - Roll-off $162.00 $175.00
Inaccessable Fee - Bin $15.00 $70.00
Service Charge - No activity- Bin/Roll-off $30.00 $60.00 Stand-by Time - Roll-off $55 per hour $60 per hour
Same day service Roll-off $45.00 $88.00
Steam Clean Bins $55.00 $93.00
Lock Installation/Repair $55.00 $153.00
Same Day Service of Bin $17.00 $86.00
Stand-by Time - Bin $55 per hour $86 per hour
Return Trip Fee - Bin $15.00 $43.00
Green Waste/Organics Contamination Fee No Fee $43.00
Recycling Contamination Fee No Fee $43.00
Recycling Hauler Permit Fee $25.00 $25.00
Steam Clean Cans $20.00 $63.00
Green Waste/Organics Contamination Fee $5 per occurance $43.00 Recycling Contamination Fee No Fee $43.00
Small vehicle service over 100' on Private Road No Fee $52.00 Customer Assist 3 No Fee $29.00
Customer Assist over 100' No Fee $43.00
Temp Bin/Roll-off Rental Period 3 Months 1 Month
Special Pickup/Return Trip Fee $10.00 $43.00
Can Replacement $11.00 $79.00
*** Modificado el 2 de octubre de 2023 ***Amended October 2, 2023 SUS DERECHOS: Si usted es el propietario del registro de una propiedad sujeta a las tarifas propuestas o un inquilino directamente responsable por el pago de los cargos por servicio de residuos sólidos (es decir, un cliente de registro), puede presentar una protesta por escrito en contra de los cambios propuestos en las tarifas. Sólo una protesta escrita por parcela será contada. Protestas escritas pueden ser enviadas por correo al secretario municipal de la ciudad de Porterville, ubicado en 291 N. Main Street, Porterville, CA 93257, o en persona en la audiencia pública, siempre y cuando se hayan recibido antes de la conclusión del testimonio público en la audiencia pública. Por favor identifique en el frente del sobre "Solid Waste Rate Protest" por cualquier protesta, ya sea por correo o entregarse personalmente al secretario municipal. Las protestas presentadas verbalmente, o por correo electrónico, fax o cualquier otro medio electrónico no serán aceptadas. Para obtener más información acerca de este aviso, por favor llame a la ciudad al (559) 782-7514. De conformidad con la sección 53759 del Código de Gobierno de California, existe un plazo de prescripción de 120 días para impugnar cualquier tarifa o cargo nuevo, aumentado o ampliado a partir de la fecha de adopción.

PROPOSICIÓN 218 AVISO DE AUDIENCIA PÚBLICA SOBRE AUMENTOS PROPUESTOS EN TARIFAS DE RESIDUO SÓLIDOS
SE NOTIFICA que la ciudad de Porterville llevará acabo una audiencia pública el 21 de noviembre de 2023, a las 6:30 pm en la cámara del consejo municipal, ubicada en 291 North Main Street, Porterville, CA 93257, para considerar la adopción de los aumentos a las tarifas de sus cargos por servicio de agua. El propósito de la audiencia pública es para tomar los comentarios escritos y orales y considerar todas las reclamaciones por escrito en contra de los aumentos de tarifas propuestos. Las reclamaciones por escrito deben ser presentadas con el secretario municipal de la ciudad de Porterville.

YOUR RIGHTS: If you are the record owner of a property subject to the proposed rates or a tenant directly liable for the payment of solid waste service fees (i.e., a customer of record), you may submit a written protest against the proposed rate changes. Only one written protest per parcel will be counted. Written protests may be submitted by mail to the City Clerk, City of Porterville, 291 North Main Street, Porterville, CA 93257, or in person at the public hearing, so long as they are received prior to the conclusion of public testimony at the public hearing. Please identify on the front of the envelope “Solid Waste Rate Protest” for any protest, whether mailed or submitted in person to the City Clerk. Protests submitted verbally, or by e-mail, facsimile, or other electronic means will not be accepted.

Each protest must (1) be in writing; (2) state opposition to the proposed solid waste rate increase; (3) provide the location of the owner’s identified parcel (by assessor’s parcel number or street address); and (4) include the original signature of the property owner or customer of record submitting the protest. Only one written protest per parcel will be counted. At the conclusion of the public hearing, the City Council will consider adopting the proposed rate increases, which are outlined on the reverse side of this notice. If, at the close of the public hearing, written protests against the proposed solid waste rate increases are submitted by a majority of record owners of affected parcels and customers of record (50% plus one), the City Council will not approve the proposed solid waste rates. If, at the close of the public hearing, written protests against the proposed rate increases do not present a majority of record owners of affected parcels and customers of record, the City Council will be authorized to impose rate increases up to the amounts proposed. If adopted, new solid waste rates will be effective January 1, 2024. Pursuant to California Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the date of adoption.

THE NEED FOR SOLID WASTE RATE INCREASES: The City of Porterville is committed to providing high quality, reliable solid waste service at the lowest possible rates for its citizens. The City’s residential rates, which are among the lowest if not the lowest in the region, have not been increased since 2006. Since that time costs have increased significantly due to both inflation and the need for the City to respond to new solid waste management regulations, including but not limited to AB 341 (mandatory commercial recycling), AB 1826 (mandatory commercial organics recycling) and SB 1383 (which establishes more comprehensive mandatory residential and commercial recycling and organics recovery). It is critically important for the City to continually maintain, repair, and improve the assets it holds and keep pace with ever increasing operating costs and regulations.

The City’s Field Services/Refuse Division is projecting a substantial revenue shortfall, resulting from the lack of a rate increases over the past 17 years. To address that shortfall a rate increase is required. In addition, the City needs to replace a significant number of its refuse vehicles, upgrade its recyclable materials and green waste transfer stations, and make improvements to both its administrative and maintenance facilities. Furthermore, the City needs to roll-out residential organic collection services to all residential accounts, commercial accounts and organics waste collection services, with a comprehensive review of all accounts. This will require additional vehicles and drivers, as well as administrative and analytical support staff to manage the City’s compliance with SB 1383, and support the operation of City solid waste services that are in line with industry standards for safety, customer service, operational compliance, and operational performance.

PROPOSED POTENTIAL FUTURE ANNUAL FIXED RATE INCREASE: City Council’s recommendation of a 50% initial rate increase effective January 1, 2024 followed by a 5% rate increases on July 1, 2024 and a 5% increase each of the following three (3) fiscal years will result in a five (5) year cumulative rate increase of 82%. After which time no further automatic adjustments would take place absent a new notice and hearing pursuant to Proposition 218.

BILL IMPACT: A typical single-family home subscribing to 95-gallon weekly solid waste, 95-gallon green waste, and 65-gallon recycling service will see its monthly bill increase from $17.85 to $26.78. Single-family, Multi-family and Commercial rates will vary depending on subscribed service. The proposed rates for each class and service are as follows:

PROPOSITION 218 NOTICE OF PUBLIC HEARING ON PROPOSED INCREASES TO SOLID WASTE RATES
NOTICE IS HEREBY GIVEN that the City of Porterville will hold a Public Hearing on November 21, 2023, at 6:30 pm in the City Council Chambers, located at 291 North Main Street, Porterville, CA 93257, to consider the adoption of increases to the rates for its solid waste service fees. The purpose of the public hearing is to take written and oral comments and consider all written protests against the proposed rate increases. Written protests must be filed with the City of Porterville City Clerk.

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Residential Rates Current Rates 50% 5% 5% 5% 5%
95 Black/65 Blue $16.44 $24.66 $25.89 $27.19 $28.55 $29.97 65 Black/65 Blue $15.91 $23.87 $25.06 $26.31 $27.63 $29.01 35 Black/65 Blue $12.35 $18.53 $19.45 $20.42 $21.45 $22.52 95 Black/65 Blue w/65 Green $17.62 $26.43 $27.75 $29.14 $30.60 $32.13 65 Black/65 Blue w/65 Green $17.09 $25.64 $26.92 $28.26 $29.68 $31.16 35 Black/65 Blue w/65 Green $13.53 $20.30 $21.31 $22.38 $23.49 $24.67 95 Black/65 Blue w/95 Green $17.85 $26.78 $28.11 $29.52 $31.00 $32.55 65 Black/65 Blue w/95 Green $17.32 $25.98 $27.28 $28.64 $30.08 $31.58 35 Black/65 Blue w/95 Green $13.76 $20.64 $21.67 $22.76 $23.89 $25.09 Additional Black $10.00 $15.00 $15.75 $16.54 $17.36 $18.23 Additional Green $6.25 $9.38 $9.84 $10.34 $10.85 $11.40 Additional Blue $6.25 $9.38 $9.84 $10.34 $10.85 $11.40
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Commercial Bin Service per Empty 1 Current Rates 50% 5% 5% 5% 5% 2 Yd Bin
Trash $49.60 $74.40 $78.12 $82.03 $86.13 $90.43
Recycling $37.20 $55.80 $58.59 $61.52 $64.60 $67.83
Organics $37.20 $55.80 $58.59 $61.52 $64.60 $67.83
3 Yard Bin
Trash $74.40 $111.60 $117.18 $123.04 $129.19 $135.65
Recycling $55.80 $83.70 $87.89 $92.28 $96.89 $101.74
Organics $55.80 $83.70 $87.89 $92.28 $96.89 $101.74
4 Yard Bin
Trash $99.20 $148.80 $156.24 $164.05 $172.25 $180.87
Recycling $74.40 $111.60 $117.18 $123.04 $129.19 $135.65 Organics $74.40 $111.60 $117.18 $123.04 $129.19 $135.65 6 Yard Bin
Trash $148.80 $223.20 $234.36 $246.08 $258.38 $271.30
Recycling $111.60 $167.40 $175.77 $184.56 $193.79 $203.48 Organics $111.60 $167.40 $175.77 $184.56 $193.79 $203.48 Commercial Can Rates 2
95 Black/65 Blue w/95 Green 2 $17.85 $34.81 $36.55 $38.38 $40.30 $42.31 Additional Black 2 $10.00 $19.50 $20.48 $21.50 $22.57 $23.70 Additional Green 2 $6.25 $12.19 $12.80 $13.44 $14.11 $14.82 Additional Blue 2 $6.25 $12.19 $12.80 $13.44 $14.11 $14.82 1 Commercial Recycle and Organic Service is required unless an approved waiver is on file with the City 2 Service approval provided at the discretion of the Public Works Director FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Temp Bin Rentals Current Rates 50% 5% 5% 5% 5%
3 Yard Bin
Deposit $32.10 $48.15 $50.56 $53.09 $55.74 $58.53
Empty Fee $32.10 $48.15 $50.56 $53.09 $55.74 $58.53
Monthly Rental Fee - No Service No Fee $24.08 $25.28 $26.55 $27.88 $29.27 4 Yard Bin
Deposit $42.80 $64.20 $67.41 $70.78 $74.32 $78.04
Empty Fee $42.80 $64.20 $67.41 $70.78 $74.32 $78.04
Monthly Rental Fee - No Service No Fee $32.10 $33.71 $35.39 $37.16 $39.02 10/15 Yard Roll off
Deposit $200.00 $300.00 $315.00 $330.75 $347.29 $364.65 Empty Fee Plus Tonnage Fee 3 $162.00 $243.00 $255.15 $267.91 $281.30 $295.37 Monthly Rental Fee - No Service No Fee $121.50 $127.58 $133.95 $140.65 $147.68 30 Yard Roll off
Deposit $200.00 $300.00 $315.00 $330.75 $347.29 $364.65 Empty Fee Plus Tonnage Fee 3 $162.00 $243.00 $255.15 $267.91 $281.30 $295.37 Monthly Rental Fee - No Service No Fee $121.50 $127.58 $133.95 $140.65 $147.68 3 Landfill fees are set by County and subject to change. Current rates are: General trash $28/ton, C&D $39/ton Green waste $29/ton
Proposed Rate Adjustment per Fiscal Year (FY)
Proposed Rate Adjustment per Fiscal Year (FY)
Proposed Rate Adjustment per Fiscal Year (FY)
Miscellaneous Rates
Customer Type
All
All
All
Commercial
Commercial
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Commercial/Multi-Family
Recycling Collection
Residential
Residential
Residential
Residential
Residential
Residential
Residential
Residential
Residential
4 Service approval provided at the discretion of the Public Works Director Temp Bin/Roll-off Rental Period 3 Months 1 Month
Special Pickup/Return Trip Fee $10.00 $43.00
Can Replacement $11.00 $79.00
Customer Assist 4 No Fee $29.00
Customer Assist over 100' No Fee $43.00
Recycling Contamination Fee No Fee $43.00
Small vehicle service over 100' on Private Road No Fee $52.00 Steam Clean Cans $20.00 $63.00
Green Waste/Organics Contamination Fee $5 per occurance $43.00 Recycling Contamination Fee No Fee $43.00
Recycling Hauler Permit Fee $25.00 $25.00
Return Trip Fee - Bin $15.00 $43.00
Green Waste/Organics Contamination Fee No Fee $43.00
Same Day Service of Bin $17.00 $86.00
Stand-by Time - Bin $55 per hour $86 per hour
Steam Clean Bins $55.00 $93.00
Lock Installation/Repair $55.00 $153.00
$55 per hour $60 per hour
Same day service Roll-off $45.00 $88.00
Description of Service Current Rate Proposed Rate
Special Pickup of Large/Bulky Items $55 per hour + Landfill Fee $88 per hour + Landfill Fee Inaccessable Fee - Roll-off $162.00 $175.00
Inaccessable Fee - Bin $15.00 $70.00
Stand-by Time - Roll-off

SUBMITTED TO:

City of Porterville, CA
February 18, 2023
Final Report:

Solid Waste Rate Study and Financial Plan
Pages Printed on 100% Post-Consumer Recycled Content Paper

Table of
Contents
City of Porterville, CA | SOLID WASTE RATE STUDY AND FINANCIAL PLAN| Final Report TOC - i
Table of Contents
1 Introduction .................................................................................. 1 2 Objectives ............................................ ……………………………………….1 3 Summary Findings ......................................................................... 2 4 Related Issues ............................................................................... 2 Solid Waste Collection System Operational Review ............................ 2 Privatization / Outsourcing Analysis .................................................... 4 Recommended Approach Going Forward ........................................... 5 5 Detailed Findings ................................. ……………………………………….5 6 Rate Model Design .. ……………………………………………………………………9
7 Rate Adjustment Scenarios ......................................................... 11 8 Rate Survey ................................................................................. 12 Tables
1 High Level Cost Estimates - Operational Improvements ................................. 8 2 High Level Cost Estimates - SB 1383 Compliance ............................................ 9 3 Summary Rate Adjustment Scenarios ........................................................... 12 4 Residential Rate Survey 50% Rate Increase ................................................... 13 Attachments
1 Scenario #1 - No Rate Adjustment
2 Scenario #2 - 7/1/23 50% + 5% annually thereafter
3 Scenario #3 - 7/1/23 30% + 7/1/24 25% + 5% annually thereafter 4 Scenario #4 - 7/1/23 25% + 7/1/24 25% + 7/1/25 10% + 5% annually thereafter
5 Commercial Rate Survey 50% Rate Increase
Table of
Contents
City of Porterville, CA | SOLID WASTE RATE STUDY AND FINANCIAL PLAN| Final Report TOC - ii
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Rate Study
and Financial
Plan
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1 Introduction
R3 Consulting Group (R3) was initially engaged by the City of Porterville (City) to conduct a Solid Waste Study that involved the following major tasks:

1. Solid Waste Collection System Operational Review - Evaluating how the Field Services Division (Division) currently provides solid waste services, and making recommendations for improving the overall performance of the City’s municipal solid waste management system;

2. Technology Review - Assessing a range of technologies for potential use by the Division, including: RFID tags; smartphone mobile applications; and upgraded field communications systems;

3. Rate Study and Financial Plan - Developing an Excel-based Rate Model / Financial Plan to be used to project the Division’s costs over a 10 year planning period accounting for, among other things, timely vehicle replacement and other future capital costs;

4. Jurisdictional Rate Survey - Comparing the City’s solid waste rates to those of other cities in the greater San Joaquin Valley;

5. Solid Waste Vehicle Impact Fee – Quantifying a fee that could be charged to the Division for that portion of the City’s street maintenance costs associated with damage caused by the Division’s solid waste vehicles; and

6. Proposition 218 Hearing - Supporting the City’s compliance with Proposition 218 requirements.

The work scope was subsequently amended to include:

7. SB 1383 Compliance Services - Assisting the City with various tasks in support of its compliance with SB 1383, which becomes effective January 1, 2022; and

8. Privatization / Outsourcing Analysis - Evaluating the potential for privatizing the City’s municipal solid waste collection operations.

This document focuses on the Task 3 - Rate Study and Financial Plan and Task 4 - Jurisdictional Survey tasks. Project Objectives are provided, followed by our Summary Findings, Related Issues, Detailed Findings, a description of the Rate Model Design, Rate Adjustment Scenarios, and the results of the Jurisdictional Rate Survey. We have also included in Section 3 Related Issues, a summary of the Task 1 - Solid Waste Collection System Operational Review and Task 8 - Privatization / Outsourcing Analysis preliminary findings. Those findings are presented to help frame and inform the Financial Plan findings and the various rate adjustment scenarios that are presented.
2 Project Objectives
 Develop an Excel-based Rate Model to project Division costs over a ten (10) year planning period, and use that Rate Model to develop a 5-Year rate adjustment plan Rate Study
and Financial
Plan
City of Porterville, CA | SOLID WASTE RATE STUDY AND FINANCIAL PLAN| Final Report

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that provides sufficient revenues to cover required capital and operating costs, while maintaining sufficient financial reserves (i.e., Financial Plan); and  Conduct a Rate Survey up to ten (10) municipalities within the greater San Joaquin Valley region to be used as a comparative benchmark for existing rates and proposed rates developed from the rate study.
3 Summary Findings
The City’s solid waste rates have not been increased since 2006 and are among the lowest if not the lowest in the region. Those rates however are not sufficient to support the Division’s current operations as a budget shortfall of approximately $145,000 (2%) is projected for fiscal year (FY) 22-23. In addition, significant additional revenues are needed to:
 Replace vehicles that are old and past their planned replacement date;  Fund capital improvement costs for the Division’s recycling and green waste transfer stations, and administration and maintenance facilities;  Improve the Division’s operations and supporting resources to bring them in line with industry standards;
 Comply with SB 1383; and
 Maintain prudent operating reserves.

To meet those financial needs, a rate increase on the order of 50% is projected to be required.

Even with such a large increase, the City’s residential rate would still be lower than the average rate of the various jurisdictions in the region that were included in the Section 8 - Rate Survey.

Section 7 of this report provides various rate adjustment scenarios for the City’s consideration. 4 Related Issues
R3 has completed the Task 1 - Solid Waste Collection System Operational Review and Task 8 - Privatization / Outsourcing Analysis for the City. The findings from those two tasks are provided below. The findings of the Solid Waste Collection System Operational Review impact the Division’s expenses and, as such, the Rate Study and Financial Plan rate modeling and rate adjustment scenarios. It is therefore important to understand those impacts. The findings of the Privatization / Outsourcing Analysis do not directly impact the current rate modeling and rate adjustment scenarios but do provide information about that option for the City’s consideration.

4.1 Solid Waste Collection System Operational Review
Overall Assessment of Performance
The Division is doing a good job with available resources however, those resources are not adequate to support an operation that is in line with industry standards for safety, customer service, and operational performance. Staff appear to be dedicated and qualified but significant advancements in the industry over the past 20 years covering all aspects of collection operations have largely not been incorporated into the Division’s operations. If the Rate Study
and Financial
Plan
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Division is to operate to industry standards, not only is a significant investment needed, but there needs to be a complete systematic revamping of how the Division’s operations and services are structured, operated, and managed. That includes perhaps most notably establishing clear objective performance standards, providing regular associated operational and safety training, and the daily collection and analysis of key operational data to support effective and efficient operations and continuous improvement.

Outsourcing Impact - Many of the Division’s collection vehicles are old and need to be replaced. Their purchase should be made according to the Division’s vehicle replacement schedule and not be delayed. Should the City subsequently decide to outsource its operations, all of the Division’s vehicles and equipment, and any remaining capital debt could be required to be assumed by the selected private operator.

SB 1383 Required Programs
To comply with SB 1383, the Division needs to expand its current commercial recycling and organics collection services to most if not all commercial accounts. It also needs to provide for the collection of residential food waste and other organics through its current residential yard waste collection program. In addition, the City needs to establish a residential and commercial SB 1383 inspection and enforcement program, develop a commercial edible food recovery program, and track and report required information to CalRecycle, among other things. All of which requires additional funding.

Outsourcing Impact - If the City outsourced municipal operations, many but not all of the City’s SB 1383 requirements and responsibilities could be transferred to the franchised hauler, although the City would retain responsibility for ensuring regulatory compliance.

Same Day Residential Collection Services
The Division provides weekly collection of residential trash, recyclables, and green waste Monday through Friday. The City is divided into four (4) zones with collection services for each of the three commodities scheduled for different days within each collection zone. Under this type of “districted” system routes are distributed throughout the City on any given day.

The industry standard is to provide all residential collection services on the same day, with routes typically “sweeping” across the service area over the course of one week. That type of collection system structure is the most common and has a number of benefits. Those benefits include allowing for more efficient route supervision, and route support to cover open routes or assist with heavy workloads as all routes are in the same area each day. Some residents may also find that placing all carts out for service on the same day is preferrable to having to place separate carts out for service on three separate days. Neighborhood esthetics may also improve as the presence of carts and associated truck traffic is limited to one day per week.

As part of our review, R3 was asked to assess the potential for switching from the current multiple day collection service to same day residential service. Division management reported that it is not opposed to switching to same day service but highlighted related issues and concerns, including that on street parking and tight cul-de-sacs may make it difficult for all three (3) carts to be positioned so that the collection vehicles can access the carts.

Management considers switching to single day service to be a significant operational challenge, which it is, and management is appropriately cautious. With that said, same day service appears feasible based on our high level review. It may however require a separate Rate Study
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route for hard to service accounts (e.g., those in tight cul-de-sacs) and will require sufficient planning, public education and outreach. A complete system reroute will also require electronic account mapping capacity, and dedicated staff and/or consultant resources.

Outsourcing Impact - If the City decided to outsource its operations, it could require the selected contractor to provide same day service and manage the transition process from the current districted system.

4.2 Privatization / Outsourcing Analysis
 Municipal Versus Outsourced Operations in California - Of the more than 500 incorporated cities and counties in California the vast majority contract with the private sector for some or all solid waste management services through exclusive and/or nonexclusive franchise systems. There are currently less than 50 municipal operated solid waste management collection systems in the State, with many/most of those operations in the Central Valley.
 Advantages/Responsibilities of Municipal Operations - Perhaps the greatest advantage of municipal operations is the direct control that the jurisdiction has over its solid waste management system. With that total control, however, also comes the jurisdiction’s total responsibility for the safety of those operations, and the operational, financial, and regulatory compliance aspects of those operations.
 Challenges/Disadvantages of Municipal Operations - One of the greatest challenges / disadvantages of municipal operations, as compared to private sector services, is the lack of economies of scale and supporting corporate resources. Municipal operations also typically lack direct control over key fundamental support services, including vehicle maintenance, customer service, and billing. Additionally, City Council goals and objectives (e.g., minimize rate impacts to residents) may not always align with the operational and financial needs of solid waste management operations, which are ever increasing in large part due to unfunded state mandates.
 Required Franchise Fee If Operations are Outsourced - Should the City decide to outsource operations not all related costs would go away, including staffing to manage the private operator’s performance and other contract requirements. Those costs that would remain with the City are projected to be on the order of $750,000 annually. That does not include any Division pension or other liabilities that would remain with the City. To fund those costs it is expected that the City would establish a franchise fee. Franchise fees on the order of 10% (or more) of gross revenues are common in the industry. As a point of reference, at projected annual revenues on the order of $10 million a 10% franchise fee would generate $1 million annually, enough to cover the projected costs that would remain with a little left over.
 Value of City’s Solid Waste Collection System to the Private Sector - The City’s solid waste collection system (franchise) is a valuable commodity. Over a 10-year term, total revenues are expected to be on the order of $100 million and more than double that over a 20-year term.
 Outsourcing Case Studies - Two outsourced municipal collection operations that we are aware of, in the City of Hemet in 2011, and the City of San Bernardino in 2016, both resulted in significant revenue to each city with no initial rate increase. Should the City Rate Study
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decide to outsource its operations, it could require certain payments from the private sector operator, in addition to franchise fees, provided those payments were legally defendable. Increased payments to the City would translate into increased rates for the private hauler.
 Benefits of Outsourcing - In addition to any potential financial benefits, benefits of outsourcing include the ability to place many of the responsibilities for complying with AB 341, AB 1826 and SB 1383 on the contracted hauler. Outsourcing also removes any additional pension liability the City might incur with continued municipal operations.  Outsourcing Impact on Displaced Employees - Consideration of outsourcing needs to consider the impact on Division staff that would be displaced. If the City were to outsource its operations, we recommend that it require the selected contractor to offer employment to all qualified displaced City employees, provide medical and dental coverage, provide a matching 401K retirement program, maintain the former City employees’ seniority levels, and honor all existing prescheduled vacation time. The City might also consider requiring a transition payment or bonus to displaced employees similar to the transition payments the cities of Hemet and San Bernardino received for their displaced employees when they outsourced municipal services.
 Outsourcing Financial Goals - Should the City decide to outsource operations, a minimum City objective could be the ability to cover all City solid waste management costs, including contract management, and any associated pension or other liabilities through franchised hauler payments to the City without raising rates. To the extent that additional legally defendable City revenues (contractor fee payments) could be generated without raising rates, the financial benefit of outsourcing would improve.

4.3 Recommended Approach Going Forward
From an operational and financial position we suggest that the City move forward as if it will continue to provide municipal services, which it will at least for a year or more even if it should decide to outsource services. Much of what the City puts into the Division’s operations going forward will transfer to a private operator if those operations were outsourced. The private operator can be required to purchase all of the City’s vehicles, equipment, and other specified assets, and offer employment to all qualified displaced Division employees. To a large degree outsourcing simply changes who is responsible for providing and managing collection services; shifting that responsibility from the City to the private hauler. Many other system components, including drivers, route supervisors, vehicles and rates may change very little. 5 Detailed Findings

1. Solid Waste Fund - The City’s solid waste fund is a self-sustaining Enterprise Fund that was established to account for revenues and expenditures associated with the City’s solid waste management system, street sweeping, graffiti removal, and household hazardous waste. The FY 22-23 budgeted expenses are $6.70 million.

The Solid Waste Fund has an operating reserve, which contains the unrestricted fund balance. As a general rule of thumb, an operating reserve of 15% - 25% is a common target operating reserve fund balance, providing a "rainy day savings account" for unexpected Rate Study
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cash flow shortages, expense or unforeseen liabilities. The Division has fiscal year ending (FYE) 22-23 projected operating reserves of approximately $711,000, or roughly 11% of annual operating expenses, versus a proposed target of 15% - 25%.

In addition, the Solid Waste Fund has two separate reserve funds:

Note: The Division has established a Solid Waste Capital Reserve Fund for funding capital projects as well as equipment replacement. The total available balance for that fund at the beginning of FY 22-23 was approximately $6.7 million. For purposes of tracking capital project expenses separate from equipment replacement expenses we have established a separate Solid Waste Equipment Replacement Fund and assigned $4.0 million of the total $6.7 million beginning FY 22-23 reserve to that Solid Waste Equipment Replacement Fund, with the remaining $2.6 million assigned to the Capital Reserve Fund. a. Solid Waste Capital Reserve Fund - The City established the Solid Waste Capital Reserve Fund in FY 01-02 as a reserve for capital expansion. The FY 22-23 budget provides funding in the amount of $760,000 for the following projects:
 Corporation yard parking lot rehabilitation - $60,000  Transfer station concrete pad (green waste) - $250,000  Transfer station cover - $150,000
 Transfer station scales - $300,000
Additional the Rate Model accounts for expenses of $200,000 annually, starting in FY 23-24 to support further improvements to the recycling and green waste transfer stations.

The Rate Model also provides an additional $200,000 in annual funding starting in FY 23-24 to fund the following capital expenses:
 Office expansion - $1,000,000
 Maintenance facility expansion - $1,000,000
The following one-time expenses totaling $495,000 for FY 23-24 are also included in the Rate Model:
 Customer relations management (CRM) system - $400,000  Safety program development / implementation - $50,000  Recovered organic material product procurement program development costs - $25,000
 Edible food recovery program implementation costs - $20,000 b. Solid Waste Equipment Replacement Reserve Fund - The Division’s Equipment Replacement Reserve Fund is used to fund the purchase of collection vehicles and other equipment. The Fund had a FYE 21-22 balance of $4.0 million. That balance is projected to decrease to $2.8 million at the end of this FY (22-23) as a result of the planned purchase of three (3) residential side loaders and two (2) commercial Rate Study
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front loaders. All of the vehicles planned to be replaced this FY are old and past their scheduled replacement date.

The Equipment reserve Fund is budgeted to receive $833,000 in revenue from Interdepartmental Service Charges in FY 22-23. A similar level of ongoing funding is assumed over the 10-year planning period, with 3.0% annual adjustments for inflation. Vehicle replacement costs are projected to average approximately $1.1 million annually over the 10-year planning period, and cart and container replacement costs are projected to average approximately $400,000 annually.

2. Franchise Fees / Street Maintenance Fees - The Solid Waste Fund is charged “franchise fees” that are used to fund street maintenance costs associated with the impact of solid waste vehicles on the City’s streets. For FY 22-23 the total budgeted Franchise Fee expense is approximately $336,000.

3. Overall Assessment - The City’s Solid Waste Fund has not had a rate increase since 2006 and it is in need of significant additional revenues to:
 Replace many of its existing vehicles over the next 5 years at an average annual cost of $1.5 million;
 Secure additional management and operational staff and other resources needed to bring its operations in line with industry standards (estimated at $548,000 annually) (see #5 below); and
 Take actions necessary to comply with SB 1383, which became effective on January 1, 2022 (estimated at $1.2 million annually) (see #6 below).

A rate increase on the order of 50% would bring FY 22-23 projected revenues in line with expenses (i.e., eliminate the current $145,000 FY 22-23 projected shortfall), and assuming 5% annual rate increases thereafter, meet projected Solid Waste Fund capital and operating needs over the next five years. This would increase the monthly residential rate by $8.93, from $17.85 to $26.78. Section 7 below provides a discussion of various Rate Adjustment Scenarios.

4. The City’s Rate are Among the Lowest in the Region - While significant rate increases are projected to be required to address the above financial requirements, the City’s current residential rates are among the lowest, if not the lowest in the region. The City’s current commercial rates also generally compare favorably to other rates in the region. Even with a 50% rate increase the City’s residential and commercial rates would be well within the range of rates in the region. See Section 8 - Jurisdictional Rate Survey below for a more detailed comparison of the City’s residential and commercial rates to those of other jurisdictions in the region.

5. Additional Staffing, Vehicles and Other Resources Needed to Support Operations that are Consistent with the Industry Standard - Table 1 provides a projection of one-time and ongoing annual City costs for the additional resources recommended to support operations that are in line with industry standards for safety, customer service, and operational performance. As shown, one-time costs are projected at $450,000, with ongoing annual costs at $548,000 annually (8% of current expenses).

6. The City’s Rates Have Not Increased Since 2006 - Since that time the consumer price index Rate Study
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(West Urban) has increased 51% and the Water Sewer Trash index, which arguable is more representative of the change in solid waste related costs than the CPI, has doubled (i.e., increased 100%).

7. The Solid Waste Division will Have Additional New Expenses Related to SB 1383 Compliance - Table 2 provides a projection of one-time and ongoing annual City costs required to comply with SB 1383. As shown, one-time costs are projected at $45,000, with ongoing annual costs at $1.2 million annually (18% of current expenses).

8. Commercial Organic Material Collection Rates - The City currently sets its commercial organic rates the same as its commercial recycling rates. Under SB 1383 we suggest the City review both its commercial recycling and organic rates and consider setting “bundled” solid waste rates that include a minimum level for both recycling (e.g., 95-gallons) and organic (e.g., 65-gallon) service. We also recommend that the City review the rates for recycling and organic services in excess of any such minimum levels with consideration for the cost of those additional service levels.

9. Cost of Service Rates - The City’s residential and commercial solid waste collection systems are expected to change significantly over the next several years as the City implements required programs and services necessary for it to comply with SB 1383. Once those systems have stabilized the City may want to update its Rate Model, and at the same time conduct a cost of service rate analysis. A cost of service analysis would separately identify the costs and revenues associated with residential, commercial, roll-off and street sweeping services. Based on that information, the City could establish residential, commercial, and roll-off “cost of service” rates that reflect the actual cost of those services, without any surpluses or subsidies among the different services, should it wish to do so.

Table 1
One-Time Ongoing
One (1) Supervisor $80,000
One (1) Route (Truck-Driver-O&M) $150,000
Overtime Savings -$42,000
One (1) Data Analyst $90,000
Develop/Implement Safety Program $50,000 $50,000
Customer Database Software/Program $400,000 $120,000
Operational Consulting Services $100,000
Totals $450,000 $548,000
FY 22-23 Expenses $6,700,000
% of Expenses 8%
High-Level Cost Estimates - Operational Improvement
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Table 2
6 Rate Model Design
The “Rate Model” that was developed is designed to project revenues and expenses for the Division over a 10-year planning period. The Rate Model consists of the following work sheets, which are described in more detail below:

1. Rate Model Summary (RM 1)

2. Revenues (RM 2)

3. Expenses (RM 3)

4. Capital Reserve Fund (RM 4)

5. Equipment Replacement Fund (RM 5)
Rate Model Summary (RM 1)
Rate Model Summary (RM 1) is used to input all revenue and expense annual percentage adjustments in the Rate Model and provides key summary financial data over the planning period. The upper portion is the Summary Results area which provides a summary of critical financial data based on the established revenue and expense adjustments, or as may otherwise be adjusted (overridden) on (RM 2) and (RM 3). The lower portions are the Revenue One-Time Ongoing
Organics Processing $520,000
Procurement Requirements $25,000 $56,000
SB 1383 Program Coordinator $95,000
One (1) Code Enforcement Officer $83,000
One (1) Organics Route (truck-driver-O&M) $150,000
One (1) Recycling Route (truck-driver-O&M) $150,000
Organics Processing $52,000
Edible Food Waste Recovery $20,000 $100,000
One (1) Code Enforcement Officer covered above
Totals $45,000 $1,206,000
FY 22-23 Expenses $6,700,000
% of Expenses 18%
High-Level Cost Estimates - SB 1383 Compliance
Required Resource
Cost
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Adjustments area (including rate revenue and non-rate revenue) and Expense Adjustments area. All revenue and expense adjustments should be entered in these applicable sections.

Revenues (RM 2)
This worksheet provides the Division’s FY 22-22 revenues, and projects those revenues out over the planning period based on the percentage adjustments listed on (RM 1), or as overridden on this sheet.

The Division’s budget includes both rate revenues (i.e., revenues from charges to customers for solid waste, recycling and organic collection services), and non-rate revenues.

Rate revenues are billed, tracked, and reported for each of the Division’s 3 major lines of business:

1. Residential Refuse Charges

2. Commercial Refuse Charges

3. Roll-Off Refuse Charges
Non-rate revenues include Recycling Revenues (recyclable material sales revenue), State Grants, Interest on Investments and Penalties.

Expenses (RM 3)
This worksheet provides the Division’s FY 22-23 expenses, and projects those expenses out over the planning period based on the expense percentage adjustments listed on (RM 1), or as overridden on this sheet.
(RM 3) mirrors the structure of the Division’s budget, which tracks and projects expenses for each of the following six (6) operations:

1. Refuse Collection and Disposal (residential, commercial, roll-off solid waste collection)

2. Green Waste

3. Street Sweeping

4. Curbside Recyclables Collection (residential recycling)

5. Recyclable Waste (commercial recycling)

6. Graffiti Removal (currently contracted to a non-profit) (RM 3) is supported by the following two (2) worksheets:
 3A - Ops Improvement Costs - Recommended expenses to support operations that are in line with industry standards; and
 3B - SB 1383 Compliance Costs - Projected expenses related to SB 1383 compliance requirements.

Capital Reserve Fund (RM 4)
As discussed above, the City established the Solid Waste Capital Reserve Fund in FY 01-02 as a reserve for capital expansion. Revenues flowing into the Capital Reserve Fund are shown along with planned expenses, and the associated fiscal year beginning and ending reserve balance. (RM 4) provides for transfers (funding) from the Solid Waste Fund to support the identified capital costs (Row 14).

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Equipment Replacement Fund (RM 5)
The Division’s Equipment Replacement Reserve Fund is used to fund collection vehicles and other equipment, including residential and commercial cart and container replacements.

Revenues flowing into the Equipment Replacement Fund are shown along with planned expenses, and the associated fiscal year beginning and ending reserve balance. (RM 5) provides for:
 Interdepartmental Service Charges (Row 12, which come from the Solid Waste Fund as currently budgeted; and
 Additional transfers (funding) from the Solid Waste Fund to support the identified capital costs (Row 15.

This worksheet is supported by RM 5A - Equipment Replacement Schedule, which provides the equipment replacement schedule that drives the required vehicle expenses. 7 Rate Adjustment Scenarios
The Division is faced with a number of significant challenges that require financial support and a significant rate increase is required to support the Division’s necessary capital and operating expenses. For planning purposes we prepared the following five year rate adjustment scenarios for the City’s consideration:
 Scenario 1- No rate adjustment (Attachment 1);
 Scenario 2 – A 50% rate increase effective July 1, 2023 followed by 5% rate increases each of the next four (4) years through FY 27-28 (Attachment 2);  Scenario 3 – 30% rate increase effective July 1, 2023 followed by a 25% rate increase on July 1, 2024, followed by 5% rate increases each of the following three (3) years through FY 27-28 (Attachment 3); and
 Scenario 4 - 25% rate increase effective July 1, 2023 followed by a 25% rate increase on July 1, 2024, followed by 10% rate increase on July 1, 2025, followed by 5% rate increases each of the following two years (2) years through FY 27-28 (Attachment 4).

Each of the above rate adjustment scenarios results in projected operating reserves equivalent to 18% or more of operating reserves at the end of FY 27-28. However, lowering the initial July 1, 2023 rate adjustment under Scenarios 3 and Scenario 4 would result in negative operating reserves in FY 23-24. With that said, in both of those cases the Division’s other reserve fund balances (Capital Reserve Fund and Equipment Replacement Fund) are projected to sufficient to cover those revenue shortfalls, if needed.

Table 3 provides a summary of each of the four (4) rate adjustment scenarios showing the associated FYE operating reserve balances, FYE balance of the other reserve funds (Capital Reserve and Equipment Replacement Reserve), and the associated residential rate.

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Table 3
8 Rate Survey
The City has not increased rates since July 1, 2006. Table 4 below provide a comparison of the City’s residential rates to the surveyed jurisdictions, assuming a 50% rate increase effective July 1, 2023 (Scenario 1). As shown, the City’s current residential rates are the lowest of the jurisdictions surveyed. Even with a 50% July 1, 2023 rate increase, the City’s monthly residential rate would still more than $1.00 per month (4%) less than the average rate of the jurisdictions surveyed.

Note: it is expected that some if not many of the rates for the other jurisdictions shown in Table 4 will need to be increased to provide funding for SB 1383 requirements, which would make the City’s rates more favorable in comparison.

Attachment 6 provides a comparison of the City’s commercial rates to those of the jurisdictions surveyed based on a 50% rate increase. As shown, the City’s current commercial trash, recycling, and organics rates are significantly lower than the average rate of the surveyed jurisdictions. With a 50% rate increase the City’s commercial trash rates for the identified service levels range from 32% lower to 1% higher than the average, the commercial recycling FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
FYE Operating Reserves 710,905 $ (2,323,011) $ $ (5,796,390) $ (9,731,206) $ (14,150,530) $ (19,078,588) FYE Other Reserves 4,667,941 $ $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate 17.85 $ $ 17.85 $ 17.85 $ 17.85 $ 17.85 $ 17.85 Average Regional Rate 27.81 $
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 50.0% 5.0% 5.0% 5.0% 5.0% 82%
FYE Operating Reserves 710,905 $ $ 944,274 $ 1,228,273 $ 1,565,432 $ 1,958,410 $ 2,409,998 Percent of Expenditures 11% 10% 12% 15% 18% 21%
FYE Other Reserves 4,667,941 $ $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate 17.85 $ $ 26.78 $ 28.11 $ 29.52 $ 31.00 $ 32.55 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 30.0% 25.0% 5.0% 5.0% 5.0% 88%
FYE Operating Reserves $ 710,905 $ (362,640) $ 248,087 $ 928,311 $ 1,681,508 $ 2,511,325 Percent of Expenditures 11% -4% 2% 9% 15% 22%
FYE Other Reserves 4,667,941 $ $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate 17.85 $ $ 23.21 $ 29.01 $ 30.46 $ 31.98 $ 33.58 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 25.0% 25.0% 10.0% 5.0% 5.0% 89%
FYE Operating Reserves 710,905 $ $ (689,368) $ (487,052) $ 274,854 $ 1,113,817 $ 2,033,688 Percent of Expenditures 11% -7% -5% 3% 10% 18%
FYE Other Reserves 4,667,941 $ $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate 17.85 $ $ 22.31 $ 27.89 $ 30.68 $ 32.21 $ 33.82 Cumulative
Rate Increase
Cumulative
Rate Increase
Cumulative
Rate Increase
Cumulative
Rate Increase
Scenario 1
Scenario 3
Scenario 4
Scenario 2
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rate ranges from the same as the average (0% difference) to 28% higher than the average, and the commercial organics rates range from 33% lower to 4% higher than the average.

Table 4
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/Porterville - Operations Review and Rate Model - 120035/Task 5 - Financial Model/FY 22-23 Financial Model/Report/City of Porterville - FINANCIAL PLAN 021823.docx Jurisdiction County Population Hauler Effective Date Curbside Recycling Green Waste
Monthly
Rate
(1)
Porterville Tulare 59,655 Municipal 7/1/2006 Weekly Weekly 17.85 $ Exeter Tulare 11,030 Mid-Valley 1/1/2020 Weekly Weekly 21.26 $ Farmersville Tulare 11,399 Mid-Valley 2020 Weekly Weekly 22.63 $ Madera Madera 65,415 Mid Valley 7/1/2013 Weekly Weekly 23.22 $ Visalia Tulare 138,649 Municipal 7/2/2013 Weekly Weekly 23.85 $ Woodlake Tulare 7,773 Mid-Valley 1/1/2019 Weekly Weekly 24.45 $ Hanford Kings 59,349 Municipal 7/1/2018 Weekly Weekly 25.20 $ Tulare Tulare 67,834 Municipal 7/1/2021 Bi-Weekly Bi-Weekly 25.53 $ Fresno Fresno 545,769 Municipal 7/1/2021 Weekly Weekly 25.35 $ Bakersfield Kern 392,756 Municipal 7/1/2016 Weekly Weekly 25.49 $ Lindsay Tulare 13,154 Mid-Valley 7/1/2020 Weekly Weekly 25.79 $ Chowchilla Madera 18,196 Mid Valley 7/1/2020 Weekly Weekly 26.63 $ Sanger Fresno 27,185 Mid Valley 2011-2012 Weekly Weekly 27.57 $ Coalinga Fresno 17,199 Mid Valley 7/1/2019 Weekly Weekly 28.01 $ Wasco Kern 27,193 Municipal 1/1/2016 Not Provided Weekly 28.12 $ Selma Fresno 24,436 WMI 2013-2014 Weekly Weekly 28.60 $ Dinuba Tulare 25,994 Pena 7/1/2018 Weekly Weekly 29.53 $ Clovis Fresno 119,175 Allied 7/1/2020 Weekly Weekly 35.17 $ Reedley Fresno 25,917 Municipal 4/1/2020 Weekly Weekly 37.89 $ Merced Merced 88,120 Municipal 7/1/2020 Weekly Weekly 44.49 $ $ 27.83
$ 17.85
$ (9.98)
-56%
Porterville SB 1383 Rate @ 50.0% $ 26.78
$ (1.06)
-4%
Porterville SB 1383 Rate vs. Average Rate
(1) The City's month rate incluces street sweeping. Some of the comparative rates incude and others do not include
street sweeping.

Porterville Rate vs. Average
Average
Porterville Rate
1 2
3 4
5 6
7 8
9 10
11 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51

B C D E F G H I J K L
CITY OF PORTERVILLE Prepared by R3 Consulting Group
SOLID WASTE RATE MODEL Rate Model Summary (RM 1)
1 2 3 4 5 6 7 8 9 10
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

SUMMARY RESULTS
Budget (City
Data)
Projected Projected Projected Projected Projected Projected Projected Projected Projected Revenue 6,555,353 $ 6,555,353 $ 6,555,353 $ 6,555,353 $ 6,555,353 $ 6,555,353 $ 6,882,082 $ 7,225,146 $ 7,585,365 $ 7,963,594 $ Expenditures 6,700,256 $ 9,589,269 $ 10,028,732 $ 10,490,169 $ 10,974,677 $ 11,483,411 $ 11,517,582 $ 12,078,461 $ 12,667,384 $ 13,285,753 $ Overall Surplus/(Shortfall) (144,903) $ (3,033,916) $ (3,473,379) $ (3,934,816) $ (4,419,324) $ (4,928,058) $ (4,635,500) $ (4,853,314) $ (5,082,019) $ (5,322,159) $ as % of Total Expenditures -2% -32% -35% -38% -40% -43% -40% -40% -40% -40% Current Residential Rate = $17.85 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 Monthly Residential Rate 17.85 $ 17.85 $ 17.85 $ 17.85 $ 17.85 $ 17.85 $ 18.74 $ 19.68 $ 20.66 $ 21.70 $ Change $ - $ - $ - $ - $ - $ - $ 0.89 $ 0.94 $ 0.98 $ 1.03 $ Cumulative Change % 0% 0% 0% 0% 0% 0% 5% 10% 16% 22%
Annual Change % 0% 0% 0% 0% 0% 0% 5% 5% 5% 5%
Operating Reserve
Beginning of FY (July 1) 855,808 $ 710,905 $ (2,323,011) $ (5,796,390) $ (9,731,206) $ (14,150,530) $ (19,078,588) $ (23,714,089) $ (28,567,403) $ (33,649,422) $ End of FY (June 30) 710,905 $ (2,323,011) $ (5,796,390) $ (9,731,206) $ (14,150,530) $ (19,078,588) $ (23,714,089) $ (28,567,403) $ (33,649,422) $ (38,971,582) $ % of Expenditures 11% -24% -58% -93% -129% -166% -206% -237% -266% -293% Months of Expenditures 1.3 -2.9 -6.9 -11.1 -15.5 -19.9 -24.7 -28.4 -31.9 -35.2 Other Reserve Fund FYE Balances 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 Capital Reserve Fund (FYE) 1,904,193 $ 1,309,193 $ 1,203,193 $ 1,091,013 $ 972,468 $ 847,366 $ 715,511 $ 576,701 $ 430,726 $ 277,372 $ Equipment Replacement Fund (FYE) 2,763,748 $ 569,068 $ (115,102) $ (179,162) $ (851,035) $ 180,847 $ 460,023 $ (174,831) $ 121,348 $ 719,985 $ Total (FYE) 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 $ 1,175,534 $ 401,870 $ 552,073 $ 997,357 $

REVENUE AND EXPENSE ADJUSTMENTS
RATE ADJUSTMENT TIMING INPUTS 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 Rate Adjustment Effective Date July 1st July 1st July 1st July 1st July 1st July 1st July 1st July 1st July 1st July 1st Note: All fiscal years begin July 1st, and the default rate adjustment date is July 1st. Any later rate adjustment date will result in decreased rate revenues for the projected fiscal year.

RATE/REVENUE ADJUSTMENT INPUTS 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 Revenue Category Note: These percentages may be overridden for specific expenditure line items on page RM2.

Fees & Grants 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Use of Money & Property 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Residential Rates - Rate Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% Commercial Rates - Rate Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% Roll-Off Rates - Rate Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% Recycling Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers from Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers to Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual Overall Revenue Adjustment 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% User-Overridden Revenue Adjustments on RM2? None None None None None None None None None User-Overridden Projected Revenue on RM2? Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1

SUMMARY RESULTS
Budget (City
Data)
Projected Projected Projected Projected Projected Projected Projected Projected Projected Revenue 6,555,353 $ 9,822,638 $ 10,312,731 $ 10,827,328 $ 11,367,655 $ 11,934,999 $ 12,530,710 $ 13,156,206 $ 13,812,977 $ 14,502,587 $ Expenditures 6,700,256 $ 9,589,269 $ 10,028,732 $ 10,490,169 $ 10,974,677 $ 11,483,411 $ 11,517,582 $ 12,078,461 $ 12,667,384 $ 13,285,753 $ Overall Surplus/(Shortfall) (144,903) $ 233,369 $ 283,999 $ 337,159 $ 392,978 $ 451,588 $ 1,013,128 $ 1,077,745 $ 1,145,593 $ 1,216,834 $ as % of Total Expenditures -2% 2% 3% 3% 4% 4% 9% 9% 9% 9% Current Residential Rate = $17.85 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 Monthly Residential Rate 17.85 $ 26.78 $ 28.11 $ 29.52 $ 31.00 $ 32.55 $ 34.17 $ 35.88 $ 37.68 $ 39.56 $ Change $ - $ 8.93 $ 1.34 $ 1.41 $ 1.48 $ 1.55 $ 1.63 $ 1.71 $ 1.79 $ 1.88 $ Cumulative Change % 0% 50% 58% 65% 74% 82% 91% 101% 111% 122% Annual Change % 0% 50% 5% 5% 5% 5% 5% 5% 5% 5%
Operating Reserve
Beginning of FY (July 1) 855,808 $ 710,905 $ 944,274 $ 1,228,273 $ 1,565,432 $ 1,958,410 $ 2,409,998 $ 3,423,126 $ 4,500,871 $ 5,646,465 $ End of FY (June 30) 710,905 $ 944,274 $ 1,228,273 $ 1,565,432 $ 1,958,410 $ 2,409,998 $ 3,423,126 $ 4,500,871 $ 5,646,465 $ 6,863,299 $ % of Expenditures 11% 10% 12% 15% 18% 21% 30% 37% 45% 52% Months of Expenditures 1.3 1.2 1.5 1.8 2.1 2.5 3.6 4.5 5.3 6.2 Other Reserve Fund FYE Balances 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 Capital Reserve Fund (FYE) 1,904,193 $ 1,309,193 $ 1,203,193 $ 1,091,013 $ 972,468 $ 847,366 $ 715,511 $ 576,701 $ 430,726 $ 277,372 $ Equipment Replacement Fund (FYE) 2,763,748 $ 569,068 $ (115,102) $ (179,162) $ (851,035) $ 180,847 $ 460,023 $ (174,831) $ 121,348 $ 719,985 $ Total (FYE) 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 $ 1,175,534 $ 401,870 $ 552,073 $ 997,357 $

Fees & Grants 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Use of Money & Property 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Residential Rates - Rate Revenue 0.0% 50.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Commercial Rates - Rate Revenue 0.0% 50.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Roll-Off Rates - Rate Revenue 0.0% 50.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Recycling Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers from Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers to Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual Overall Revenue Adjustment 49.8% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% User-Overridden Revenue Adjustments on RM2? None None None None None None None None None User-Overridden Projected Revenue on RM2? Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1

SUMMARY RESULTS
Budget (City
Data)
Projected Projected Projected Projected Projected Projected Projected Projected Projected Revenue 6,555,353 $ 8,515,724 $ 10,639,459 $ 11,170,393 $ 11,727,874 $ 12,313,228 $ 12,927,850 $ 13,573,204 $ 14,250,825 $ 14,962,327 $ Expenditures 6,700,256 $ 9,589,269 $ 10,028,732 $ 10,490,169 $ 10,974,677 $ 11,483,411 $ 11,517,582 $ 12,078,461 $ 12,667,384 $ 13,285,753 $ Overall Surplus/(Shortfall) (144,903) $ (1,073,545) $ 610,727 $ 680,224 $ 753,196 $ 829,817 $ 1,410,269 $ 1,494,743 $ 1,583,441 $ 1,676,574 $ as % of Total Expenditures -2% -11% 6% 6% 7% 7% 12% 12% 13% 13% Current Residential Rate = $17.85 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 Monthly Residential Rate 17.85 $ 23.21 $ 29.01 $ 30.46 $ 31.98 $ 33.58 $ 35.26 $ 37.02 $ 38.87 $ 40.81 $ Change $ - $ 5.36 $ 5.80 $ 1.45 $ 1.52 $ 1.60 $ 1.68 $ 1.76 $ 1.85 $ 1.94 $ Cumulative Change % 0% 30% 63% 71% 79% 88% 98% 107% 118% 129% Annual Change % 0% 30% 25% 5% 5% 5% 5% 5% 5% 5%
Operating Reserve
Beginning of FY (July 1) 855,808 $ 710,905 $ (362,640) $ 248,087 $ 928,311 $ 1,681,508 $ 2,511,325 $ 3,921,593 $ 5,416,336 $ 6,999,777 $ End of FY (June 30) 710,905 $ (362,640) $ 248,087 $ 928,311 $ 1,681,508 $ 2,511,325 $ 3,921,593 $ 5,416,336 $ 6,999,777 $ 8,676,351 $ % of Expenditures 11% -4% 2% 9% 15% 22% 34% 45% 55% 65% Months of Expenditures 1.3 -0.5 0.3 1.1 1.8 2.6 4.1 5.4 6.6 7.8 Other Reserve Fund FYE Balances 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 Capital Reserve Fund (FYE) 1,904,193 $ 1,309,193 $ 1,203,193 $ 1,091,013 $ 972,468 $ 847,366 $ 715,511 $ 576,701 $ 430,726 $ 277,372 $ Equipment Replacement Fund (FYE) 2,763,748 $ 569,068 $ (115,102) $ (179,162) $ (851,035) $ 180,847 $ 460,023 $ (174,831) $ 121,348 $ 719,985 $ Total (FYE) 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 $ 1,175,534 $ 401,870 $ 552,073 $ 997,357 $

Fees & Grants 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Use of Money & Property 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Residential Rates - Rate Revenue 0.0% 30.0% 25.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Commercial Rates - Rate Revenue 0.0% 30.0% 25.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Roll-Off Rates - Rate Revenue 0.0% 30.0% 25.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Recycling Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers from Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers to Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual Overall Revenue Adjustment 29.9% 24.9% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% User-Overridden Revenue Adjustments on RM2? None None None None None None None None None User-Overridden Projected Revenue on RM2? Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1

SUMMARY RESULTS
Budget (City
Data)
Projected Projected Projected Projected Projected Projected Projected Projected Projected Revenue 6,555,353 $ 8,188,996 $ 10,231,049 $ 11,252,075 $ 11,813,640 $ 12,403,283 $ 13,022,408 $ 13,672,489 $ 14,355,074 $ 15,071,789 $ Expenditures 6,700,256 $ 9,589,269 $ 10,028,732 $ 10,490,169 $ 10,974,677 $ 11,483,411 $ 11,517,582 $ 12,078,461 $ 12,667,384 $ 13,285,753 $ Overall Surplus/(Shortfall) (144,903) $ (1,400,273) $ 202,316 $ 761,906 $ 838,963 $ 919,871 $ 1,504,826 $ 1,594,028 $ 1,687,690 $ 1,786,036 $ as % of Total Expenditures -2% -15% 2% 7% 8% 8% 13% 13% 13% 13% Current Residential Rate = $17.85 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 Monthly Residential Rate 17.85 $ 22.31 $ 27.89 $ 30.68 $ 32.21 $ 33.82 $ 35.52 $ 37.29 $ 39.16 $ 41.11 $ Change $ - $ 4.46 $ 5.58 $ 2.79 $ 1.53 $ 1.61 $ 1.69 $ 1.78 $ 1.86 $ 1.96 $ Cumulative Change % 0% 25% 56% 72% 80% 89% 99% 109% 119% 130% Annual Change % 0% 25% 25% 10% 5% 5% 5% 5% 5% 5%
Operating Reserve
Beginning of FY (July 1) 855,808 $ 710,905 $ (689,368) $ (487,052) $ 274,854 $ 1,113,817 $ 2,033,688 $ 3,538,514 $ 5,132,542 $ 6,820,233 $ End of FY (June 30) 710,905 $ (689,368) $ (487,052) $ 274,854 $ 1,113,817 $ 2,033,688 $ 3,538,514 $ 5,132,542 $ 6,820,233 $ 8,606,268 $ % of Expenditures 11% -7% -5% 3% 10% 18% 31% 42% 54% 65% Months of Expenditures 1.3 -0.9 -0.6 0.3 1.2 2.1 3.7 5.1 6.5 7.8 Other Reserve Fund FYE Balances 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 Capital Reserve Fund (FYE) 1,904,193 $ 1,309,193 $ 1,203,193 $ 1,091,013 $ 972,468 $ 847,366 $ 715,511 $ 576,701 $ 430,726 $ 277,372 $ Equipment Replacement Fund (FYE) 2,763,748 $ 569,068 $ (115,102) $ (179,162) $ (851,035) $ 180,847 $ 460,023 $ (174,831) $ 121,348 $ 719,985 $ Total (FYE) 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 $ 1,175,534 $ 401,870 $ 552,073 $ 997,357 $

Fees & Grants 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Use of Money & Property 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Residential Rates - Rate Revenue 0.0% 25.0% 25.0% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Commercial Rates - Rate Revenue 0.0% 25.0% 25.0% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Roll-Off Rates - Rate Revenue 0.0% 25.0% 25.0% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Recycling Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers from Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfers to Other Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Actual Overall Revenue Adjustment 24.9% 24.9% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% User-Overridden Revenue Adjustments on RM2? None None None None None None None None None User-Overridden Projected Revenue on RM2? Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1 Yes, 1

CELL DATA SOURCES
User Input Calculated Surplus
Calculated Value Calculated Shortfall
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/Porterville - Operations Review and Rate Model - 120035/Task 5 - Financial Model/FY 22-23 Financial Model/Porterville FY 22-23 Rate Model 020723.xlsx / RM #1 - Porterville Summary 2/7/2023
Attachment 4
2 3
4 5
6 8
9 10
11 12
13 14
15 16
17 18
19 20
22 23
24 25
26 27
28 29
34 35
36 B C D E F G H I J K L N O P Q R
Service Level Rate Service Level Rate Service Level Rate Service Level Rate Hanford Kings 53,032 Municipal 7/1/2018 Separate Rate 67.60 $ 3yd - 1x 70.90 $ 2yd - 1x 67.60 $ 135.20 $ 3yd - 2x 141.80 $ 2yd - 2x 135.20 $ Madera Madera 18,196 Mid Valley 2013 Separate Rate 52.11 $ 2yd - 1x 31.22 $ not offered not offered 102.40 $ 2yd - 2x 55.98 $ not offered not offered Sanger Fresno 27,185 Mid Valley 2010 Separate Rate 248.49 $ not offered not offered not offered not offered not offered Porterville Tulare 59,655 Municipal 5/1/2009 Separate Rate 49.60 $ 2yd - 1x 37.20 $ 2yd - 1x 37.20 $ 99.20 $ 2yd - 2x 74.40 $ 2yd - 2x 74.40 $ Fresno Fresno 545,769 Allied-Mid Val 7/1/2020 Separate Rate 79.18 $ 2yd - 1x 26.89 $ 2yd - 1x 48.32 $ 158.31 $ 2yd - 2x 53.70 $ 2yd - 2x 96.60 $ Visalia Tulare 138,649 Municipal 2013 Separate Rate 67.45 $ 2yd - 1x 39.05 $ 2yd - 1x 60.15 $ 124.20 $ 2yd - 2x 67.40 $ 2yd - 2x 109.60 $ Chowchilla Madera 392,756 Mid Valley 7/1/2020 Separate Rate 83.98 $ 2yd - 1x 35.07 $ 2yd - 1x 59.62 $ 161.73 $ 2yd - 2x 63.13 $ 2yd - 2x 107.32 $ Tulare Tulare 67,834 Municipal 7/1/2020 Yes 119.43 $ 240.70 $ Reedley Fresno 25,917 Municipal 7/1/2020 Separate Rate 122.85 $ 3yd - 1x 66.19 $ 96-gal - 1x 11.37 $ 204.71 $ 3yd - 2x 90.26 $ 96-gal - 1x 11.37 $ Dinuba Tulare 25,994 Pena 2/1/2020 Yes 127.42 $ 228.16 $ Lindsay Tulare 13,154 Mid Valley 10/1/2019 Separate Rate 82.33 $ 2yd - 1x 52.11 $ 2yd - 1x 79.30 $ 143.93 $ 2yd - 1x 52.11 $ 2yd - 2x 143.96 $ Bakersfield Kern 392,756 Municipal 2020-2021 Yes 138.52 $ 3yd - 1x 88.06 $ 3yd - 1x 119.17 $ 201.13 $ 3yd - 2x 192.74 $ 3yd - 2x 254.95 $ Woodlake Tulare 7,773 Mid-Valley 1/1/2019 Separate Rate 96.97 $ 2yd - 1x 78.29 $ 2yd - 1x 85.00 $ 165.37 $ 2yd - 1x 78.29 $ 2yd - 1x 85.00 $ Merced Merced 65,415 Municipal 7/1/2020 Separate Rate 122.28 $ 2yd - 1x 106.39 $ 2yd - 1x 130.49 $ 225.16 $ 2yd - 2x 194.72 $ 2yd - 2x 240.90 $ Coalinga Fresno 17,199 Mid Valley 7/1/2019 Separate Rate 168.91 $ 2yd - 1x 38.51 $ 2yd - 1x 79.21 $ $ 168.91 2yd - 2x $ 71.51 2yd - 2x $ 148.53 Average 98.47 $ 55.82 $ 74.02 $ 168.51 $ 94.67 $ 133.34 $ Porterville Rate 49.60 $ 37.20 $ 37.20 $ 99.20 $ 74.40 $ 74.40 $ $ (48.87) $ (18.62) $ (69.31) $ (20.27)
-99% -50% -70% -27%

50.0% Increase 74.40 $ 55.80 $ 55.80 $ 148.80 $ 111.60 $ 111.60 $ (24.07) $ (0.02) $ (18.22) $ (19.71) $ 16.93 $ (21.74) $ -32% 0% -33% -13% 15% -19%
Porterville SB 1383 Rates vs. Average Rates
Porterville Rate
vs. Average
Porterville SB 1383 Rates @
bundled with garbage not offered bundled with garbage not offered bundled with garbage N/A bundled with garbage N/A
Recycling Fee = $1.70 per unit Recycling Fee = $1.70 per unit Organics Recycling
1x / week 2x / week
Current Rates
2 yard
Jurisdiction County Population Hauler
Effective
Date
Recycling
Included in
"Current Rates"
Trash
Recycling Organics
Trash
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/Porterville - Operations Review and Rate Model - 120035/Task 5.3 - Rate Survey/KD Final Porterville - Rate Survey 101921.xlsx / Com-Report Table 50% Attachment 5
2 3
4 5
6 8
9 10
11 12
13 14
15 16
17 18
19 20
22 23
24 25
26 27
28 29
34 35
36 B C D E F G
Hanford Kings 53,032 Municipal 7/1/2018 Separate Rate
Madera Madera 18,196 Mid Valley 2013 Separate Rate
Sanger Fresno 27,185 Mid Valley 2010 Separate Rate
Porterville Tulare 59,655 Municipal 5/1/2009 Separate Rate Fresno Fresno 545,769 Allied-Mid Val 7/1/2020 Separate Rate Visalia Tulare 138,649 Municipal 2013 Separate Rate
Chowchilla Madera 392,756 Mid Valley 7/1/2020 Separate Rate Tulare Tulare 67,834 Municipal 7/1/2020 Yes
Reedley Fresno 25,917 Municipal 7/1/2020 Separate Rate
Dinuba Tulare 25,994 Pena 2/1/2020 Yes
Lindsay Tulare 13,154 Mid Valley 10/1/2019 Separate Rate Bakersfield Kern 392,756 Municipal 2020-2021 Yes
Woodlake Tulare 7,773 Mid-Valley 1/1/2019 Separate Rate Merced Merced 65,415 Municipal 7/1/2020 Separate Rate
Coalinga Fresno 17,199 Mid Valley 7/1/2019 Separate Rate Average
Porterville Rate

50.0% Increase
Porterville SB 1383 Rates vs. Average Rates
Porterville Rate
vs. Average
Porterville SB 1383 Rates @
Jurisdiction County Population Hauler
Effective
Date
Recycling
Included in
"Current Rates"

T U V W X Z AA AB AC AD
Service Level Rate Service Level Rate Service Level Rate Service Level Rate

94.50 $ 3yd - 1x 70.90 $ 2yd - 1x 135.20 $ 189.00 $ 3yd - 2x 141.80 $ 2yd - 2x 135.20 $

65.84 $ 3yd - 1x 41.89 $ not offered not offered 130.34 $ 3yd - 2x 72.72 $ not offered not offered not offered not offered not offered not offered not offered not offered not offered not offered not offered not offered

74.40 $ 3 yd - 1x 55.80 $ 3 yd - 1x 55.80 $ 148.80 $ 3yd - 2x 111.60 $ 3yd - 2x 111.60 $ 117.02 $ 3yd - 1x 39.48 $ 3yd - 1x 71.03 $ 232.12 $ 3yd - 2x 78.08 $ 3yd - 2x 140.47 $

83.00 $ 3yd - 1x 47.40 $ 3yd - 1x 72.05 $ 154.10 $ 3yd - 2x 82.90 $ 3yd - 2x 132.20 $ 107.52 $ 3yd - 1x 44.69 $ 3yd - 1x 75.97 $ 211.92 $ 3yd - 2x 80.44 $ 3yd - 2x 136.75 $ 153.34 $ 308.61 $
178.34 $ 313.89 $
114.27 $ 3yd - 1x 72.33 $ 2yd - 1x 79.30 $ 198.97 $ 3yd - 2x 121.39 $ 2yd - 2x 143.96 $ 172.26 $ 3yd - 1x 88.06 $ 3yd - 1x 119.17 $ 253.53 $ 3yd - 2x 192.74 $ 3yd - 2x 254.95 $ $135.42 3yd - 1x 109.60 $ 2yd - 1x 85.00 $ 231.02 $ 3yd - 1x 109.60 $ 2yd - 1x 85.00 $ 133.28 $ 3yd - 1x 115.84 $ 3yd - 1x 142.30 $ 247.20 $ 3yd - 2x 213.63 $ 3yd - 2x 264.54 $ $ 253.04 3yd - 1x $ 60.51 2yd - 1x $ 79.21 253.04 $ 3yd - 2x 121.02 $ 2yd - 2x $ 148.53 129.40 $ 67.86 $ 95.47 $ 220.96 $ 120.54 $ 160.18 $

74.40 $ 55.80 $ 55.80 $ 148.80 $ 111.60 $ 111.60 $
$ (55.00) $ (12.06) $ (72.16) $ (8.94) $ (48.58)
-74% -22% -48% -8% -44%
111.60 $ 83.70 $ 83.70 $ 223.20 $ 167.40 $ 167.40 $
(17.80) $ 15.84 $ (11.77) $ 2.24 $ 46.86 $ 7.22 $
-16% 19% -14% 1% 28% 4%
bundled with garbage not offered
bundled with garbage N/A
not offered not offered
bundled with garbage not offered
bundled with garbage N/A
Trash
Recycling Organics
Trash
Recycling Organics
1x / week 2x / week
Current Ratess
3 yard
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/Porterville - Operations Review and Rate Model - 120035/Task 5.3 - Rate Survey/KD Final Porterville - Rate Survey 101921.xlsx / Com-Report Table 50% Attachment 5
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
FYE Operating Reserves $ 710,905 $ (2,323,011) $ (5,796,390) $ (9,731,206) $ (14,150,530) $ (19,078,588) Percent of Expenditures 10% -29% -65% -103% -143% -179% FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 17.85 $ 17.85 $ 17.85 $ 17.85 $ 17.85 Average Regional Rate $ 27.81
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 50.0% 5.0% 5.0% 5.0% 5.0% 82%
FYE Operating Reserves $ 710,905 $ 944,274 $ 1,228,273 $ 1,565,432 $ 1,958,410 $ 2,409,998 Percent of Expenditures 11% 10% 12% 15% 18% 21%
FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 26.78 $ 28.11 $ 29.52 $ 31.00 $ 32.55 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 30.0% 25.0% 5.0% 5.0% 5.0% 88%
FYE Operating Reserves $ 710,905 $ (362,640) $ 248,087 $ 928,311 $ 1,681,508 $ 2,511,325 Percent of Expenditures 11% -4% 2% 9% 15% 22%
FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 23.21 $ 29.01 $ 30.46 $ 31.98 $ 33.58 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 25.0% 25.0% 10.0% 5.0% 5.0% 89%
FYE Operating Reserves $ 710,905 $ (689,368) $ (487,052) $ 274,854 $ 1,113,817 $ 2,033,688 Percent of Expenditures 11% -7% -5% 3% 10% 18%
FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 22.31 $ 27.89 $ 30.68 $ 32.21 $ 33.82 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 56.0% 5.0% 5.0% 5.0% 5.0% 90%
FYE Operating Reserves $ 710,905 $ 1,336,348 $ 2,032,025 $ 2,801,446 $ 3,648,299 $ 4,576,455 Percent of Expenditures 11% 14% 20% 27% 33% 40%
FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 27.85 $ 29.24 $ 30.70 $ 32.24 $ 33.85 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 56.0% 0.0% 5.0% 5.0% 5.0% 81%
FYE Operating Reserves $ 710,905 $ 1,336,348 $ 1,522,328 $ 1,756,568 $ 2,041,481 $ 2,379,600 Percent of Expenditures 11% 14% 15% 17% 19% 21%
FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 27.85 $ 27.85 $ 29.24 $ 30.70 $ 32.24 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Rate Adjustment 0.0% 56.0% 0.0% 0.0% 0.0% 0.0% 56%
FYE Operating Reserves $ 710,905 $ 1,336,348 $ 1,522,328 $ 1,246,872 $ 486,907 $ (781,792) Percent of Expenditures 11% 14% 15% 12% 4% -7%
FYE Other Reserves $ 4,667,941 $ 1,878,261 $ 1,088,091 $ 911,851 $ 121,433 $ 1,028,213 Residential Rate $ 17.85 $ 27.85 $ 27.85 $ 27.85 $ 27.85 $ 27.85 Scenario 7 Cumulative Rate
Increase
Scenario 1 Cumulative Rate
Increase
Scenario 2 Cumulative Rate
Increase
Scenario 3 Cumulative Rate
Increase
Scenario 4 Cumulative Rate
Increase
Scenario 5 Cumulative Rate
Increase
Scenario 6 Cumulative Rate
Increase
Item No.

16. CITY COUNCIL AGENDA – NOVEMBER 21, 2023
SUBJECT: Public Hearing and Consideration of Establishing Recycled Water and Meter Rates
SOURCE: Public Works
COMMENT: At its meeting on September 19, 2023, the City Council approved setting a Public Hearing for November 21, 2023, to conduct a protest hearing and consider establishing Recycled Water and Meter Rate increases. In accordance with Proposition 218 legal requirements, the City must provide, at minimum, a 45-day notice for a protest hearing on proposed fee increases. To comply with Proposition 218 legal requirements, the City mailed the record owner of the property subject to the proposed rates or the tenant directly liable for the payment of Recycled Water and Meter rate fees a Notice of Public Hearing on September 29, 2023. On October 6, 2023, an amended Notice of Public Hearing was mailed, which included the 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the effective date or the date of adoption, whichever is later.

The City published a Notice of Public Hearing in the Porterville Recorder on October 28, 2023, and November 10, 2023. In addition, the Notice of Public Hearing was uploaded to the City website on October 17, 2023. The Notice of Public Hearing provided the record owner of the property subject to proposed rates or tenant directly liable for payment with instructions on how to file a protest against the proposed Recycled Water and Meter rate increases as follows:
"YOUR RIGHTS: If you are the record owner of a property subject to the proposed rates or a tenant directly liable for the payment of water service fees (i.e., a customer of record), you may submit a written protest against the proposed recycled water and meter rate. Only one written protest per parcel will be counted. Written protests may be submitted by mail to the City Clerk, City of Porterville, 291 North Main Street, Porterville, CA 93257, or in person at the public hearing, so long as they are received prior to the conclusion of public testimony at the public hearing. Please identify on the front of the envelope "Water Rate Protest" for any protest, whether mailed or submitted in person to the City Clerk. Please indicate your name and either the address(es) or water/sewer account number(s) of your property or properties. Protests submitted verbally, by e-mail, facsimile, or other electronic means will not be accepted.

Item No.

16. Each protest must (1) be in writing; (2) state opposition to the proposed recycled water rate; (3) provide the location of the owner's identified parcel (by assessor's parcel number or street address); and (4) include the original signature of the property owner or customer of record submitting the protest.

Only one written protest per parcel will be counted.

At the conclusion of the public hearing, the City Council will consider adopting the proposed water rate outlined on the reverse side of this notice. If, at the close of the public hearing, written protests against the proposed water rate are submitted by a majority of record owners of affected parcels and customers of record (50% plus one), the City will not approve the proposed water rates. If, at the close of the public hearing, written protests against the proposed rate increases do not present a majority of record owners of affected parcels and customers of record, the City Council will be authorized to impose the proposed rate up to the amounts proposed. If adopted, the new recycled water rate will be effective January 1, 2024." Pursuant to California Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge from the date of adoption." The City completed a Recycled Water Feasibility Study in October 2019. Its primary objective was to identify and analyze opportunities for supplying recycled water in and around the city of Porterville. The City is near completion of its .308 Million Gallon-a-day (MGD) Tertiary Water Treatment Facility, which is scheduled for operation by the end of calendar year 2023.

Implementing recycled water will enable the City to offset potable water use, thereby enhancing local sustainability and drought impact resiliency to customers for irrigation and industrial uses. The City makes every effort to provide its customers with water in the most efficient and cost-effective manner possible. The City continuously evaluates operational costs and utilization of assets to maintain infrastructure efficiencies and improve water supply distribution. Tertiary treatment of the City's wastewater effluent to recycled water will be crucial in augmenting or offsetting potable water supplies. The implementation of recycled water requires the proposed recycled water pricing mechanism and rate structure to recover the cost of production, distribution, and maintenance of recycled water.

The City's recycled water rate revenue will fund the costs of providing recycled water service. Therefore, recycled water rates must be set at sufficient levels to recover the cost of treatment, operation, maintenance, and capital improvement.

Recycled water rates comprise three parts: recycled water consumption fees, recycled water meter service fees, and recycled water backflow device fees.

PROPOSED RATES FOR 2024: Recycled water usage revenues pay for the costs of delivering recycled water and are based on the quantity of recycled water consumed as measured by the water meter. The proposed water rates include (1) a monthly meter charge and (2) a water consumption use charge.

The meter charge is a fixed amount calculated to recover a portion of the City's Item No.

16. fixed costs of operating and maintaining the recycled water system. It is established on the basis of the size of the water meter serving the property. The fixed meter charge is due regardless of the quantity of water consumed. The water use charge is the rate the City charges per unit of water consumed (one unit of water equates to 748 gallons or 100 cubic feet). The charge will differ from one bill to another, depending on the water consumed and meter size. The Council will consider a recycled water rate structure of $1.91 per unit for irrigation and industrial uses. In addition to consumption, a proportional rate structure by meter size is also being considered for all new meter ranges not previously covered by existing service fees. Recycled water service fees, based on meter size, pay for fixed costs of providing service and do not vary with the quantity of water purchased.

RECOMMENDATION: That the City Council:

1. Conduct a Public Hearing to consider the adoption of recycled water and meter rates;

2. Receive any additional written protests;

3. Direct the City Clerk to tally the protests and report the total; and

4. Consider approval of the attached draft Resolution, if the tally does not exceed a majority protest as determined by the City Clerk.

ATTACHMENTS: 1. Draft Resolution

2. Proposition 218 Notice of Public Hearing On Proposed New Recycled Water And Meter Rates
Appropriated/Funded:

Review By:

Department Director:

Michael Knight, Public Works Director
Final Approver: John Lollis, City Manager

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Porterville City CouncilNovember 21, 2023

Porterville City Council
November 21, 2023