The Work Completion Date is established as August 31, 2019. The Recipient shall deliver any request for extension of the Work Completion date no less than 90 days prior to the Work Completion Date. The Division will not unreasonably deny such a timely request, but the Division may deny requests received after this time.
A.2 Purpose.
This grant is for the benefit of the Recipient. This grant is for the benefit of the Technical Assistance Recipient identified in the Work Plan or Work Plans. Its purpose is for the provision of technical assistance to small disadvantaged communities to develop, fund, and implement their capital improvement projects.
A.3 Scope of Work.
The Recipient agrees to do the following:
The Division accepts requests for technical assistance on a continuous basis. The Division may refer eligible assistance requests (ARs) to the Recipient. After accepting an AR, the Recipient will determine what specific assistance it plans to provide and will submit a technical assistance Work Plan with estimated deliverables and due dates for Division approval. The technical assistance proposed in a given Work Plan shall be consistent with the general technical assistance tasks outlined below, and the grantee shall implement technical assistance consistent with Division-approved work plans, or amendments thereto, including timely submittal of deliverables within the approved Work Plan budget. Each approved Work Plan shall constitute an amendment to this Agreement and must be signed and dated by the Deputy Director of the Division or designee and the Authorized Representative, Project Director, or designee to be effective.
(a) Scoping: The purpose of this task is to define the project and prepare a work plan. (1) Characterize challenges and potential solutions
(2) Conduct kickoff meeting to discuss path forward
(3) Prepare project work plan
(b) Pre-Planning: The purpose of this task is to determine whether to consolidate or improve the water and/or wastewater system(s).
(1) Conduct Community Outreach
a. Prepare/implement outreach strategy
b. Assess community interest in the project
c. Conduct/document community meetings
d. Prepare/distribute communication materials
e. Conduct pre-project socio-economic assessment to establish baseline (2) Conduct a Median Household Income (MHI) Survey
APPROVED
Packet Pg. 461 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) (3) Evaluate Consolidation Feasibility
a. Identify potential facilities within a five-mile radius b. Initiate contact with candidate facility owners
c. Conduct cost-benefit analysis of consolidation construction University Enterprises, Inc.
Agreement No. D1612806
d. Evaluate organizatfon of restructured water and/or wastewater system(s) e. Prepare preliminary agreements to participate in facility consolidation f. Evaluate and document Local Agency Formation Commission (LAFCO) requirements g. Evaluate governance options
h. Facilitate decision-making process
i. Prepare consolidation commitments (e.g. board resolution) j. Assist with formation of new entity
(4) Conduct Technical, Managerial, and Financial Assessment and Assistance a. Evaluate whether water quality meets regulatory limits (either through review of existing data or through sampling and analysis')
b. Develop or update policy manual
c. Develop or update financial policy
d. Develop or update budget and projects/capital improvement and asset management plans
e. Develop or update operations and maintenance plans
f. Determine scope and budget for planning
g. Assist in preparing Drinking Water State Revolving Fund (DWSRF) and/or Clean Water State Revolving Fund (CWSRF) planning financing application h. Provide grant/funding administration
i. Assist in procurement of professional services
(c) Planning: The purpose of this task is to conduct or review studies and prepare or review conceptual, pre-, and final designs for the water and/or wastewater system improvements. (1) Conduct Community Outreach
a. Implement outreach strategy
b. Conduct/document community meetings
c. Prepare/distribute communication materials
APPROVED
Packet Pg. 462 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
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(2) Conduct Detailed Evaluation of Drinking Water Source, and Treatment and Distribution Systems
a. Water quality (raw supply and distribution system)
i. Conduct hydrogeologic and geotechnical evaluations, as appropriate b. Capacity (supply, treatment and storage)
i. Conduct hydrogeologic and geotechnical evaluations, as appropriate c. Leak detection and water audits
d. Condition assessment/expected facility life
e. Energy use/efficiency
(3) Identify Needed Water System Improvements
a. Additional source water (surface, ground or recycled) b. Facilities needing retrofitting (source, treatment, storage, distribution) c. Facilities needing replacement (source, treatment, storage, distribution) d. New facilities (source, treatment, storage, distribution) e. Identify and evaluate alternative solutions - consider non-cost and cost benefits and recommend solution(s)
(4) Conduct a Detailed Evaluation of Wastewater System
a. Wastewater quality (pre- and posHreafrnent)
b. Capacity (collection, treatment and disposal)
i. Conduct hydrogeologic and geotechnical evaluations, as appropriate c. Septic to sewer conversions
d. Leak detection
e. Condition assessment/expected facility life
f. Energy use/efficiency
(5) Identify Needed Wastewater System Improvements
a. Facilities needing retrofitting (collection, treatment and disposal) b. Facilities needing replacement (collection, treatment and disposal) c. New facilities (collection, treatment and disposal)
APPROVED
Packet Pg. 463 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
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d. Identify and evaluate alternative solutions - consider non-cost and cost benefits and recommend solution
(6) Provide Environmental Services
a. Identify strategy to meet environmental requirements (e.g. CEQA, other) b. Prepare permit applications and reports (e.g. domestic water supply permit, Report of Waste Discharge, etc.)
(7) Provide Design or Design Review Services
a. Conceptual (10%) design, cost estimate, and delivery method (e.g. conventional or design/build) for selected solution
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Water distribution
iv. Wastewater collection
V. Wastewater treatment
vi. Effluent disposal
b. Pilot studies
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Wastewater treatment
iv. Effluent disposal
c. Preliminary (30%) design (including engineer's estimate and supporting drawings, as appropriate) ·
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Water distribution
iv. Wastewater collection
V. Wastewater treatment
vi. Effluent disposal
d. Detailed (100%) design (including detailed engineer's estimate and plans and specifications, as appropriate)
APPROVED
Packet Pg. 464 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) (8)
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Water distribution
iv. Wastewater collection
v. Wastewater treatment
vi. Effluent disposal
Provide Management Support
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a. Prepare Request for Proposal (RFP) for detailed designer(s) or contractor(s) (depending on delivery method)
b. Provide support during bidding
i. Answer questions during the bid period and prepare addenda ii. Evaluate bids and make recommendation to award
c. Conduct rate study
d. Support Proposition 218 compliance
e. Prepare relevant service, management, operating, or joint powers agreement(s) f. Prepare consolidation agreement(s)
g. Assist in preparing a DWSRF or CWSRF construction funding application h. Prepare resolutions, certifications, and legal opinions (d) Construction: The purpose of this task is to oversee construction and commissioning of water system improvements. ·
(1) Conduct Community Outreach
a. Implement outreach strategy
b. Conduct/document community meetings
c. Prepare/distribute communication materials
d. Prepare post-project socio-economic assessment
(2) Provide Technical Support
a. Conduct periodic inspections
b. Answer contractor requests for information
c. Review contractor construction schedule
APPROVED
Packet Pg. 465 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) d. Review equipment technical submittals
e. Prepare construction change orders
f. Review contractor pay requests and receive certified payrolls g. Receive certifications of proper installation
h. Review materials and performance testing
i. Schedule operator training by contractor
j. Monitor facility start-up
University Enterprises, Inc.
Agreement No. D1612806
k. Coordinate completion of record drawings for facilities and locations (3) Provide Managerial Support
a. Update operations and maintenance documentation, as appropriate b. Provide training
c. Perform contract closeout
d. Manage warranty services
e. Prepare emergency response plan
(4) Provide Financial Management Support
a. Assist in funding administration
Related technical assistance tasks not specifically listed above, but consistent with the general scope and types of technical assistance described above may be included in a technical assistance Work Plan subject to Division approval.
A.4 Reporting.
(a) Progress Reports. The Recipient shall submit quarterly progress reports to the Grant Manager within thirty (30) days following the end of the calendar quarter (March, June, September, and December). Progress Reports shall provide a brief description of activities that have occurred, milestones achieved, monitoring results (if applicable), and any problems encountered in the performance of the work under this Agreement during the applicable reporting period. Reporting shall be required even if no grant related activities occurred during the reporting period. The Recipient shall document all activities and expenditures in progress reports, including work performed by contractors. Progress reports must be signed by the Authorized Representative, Project Director, or designee.
(b) As Needed Information or Reports. The Recipient agrees to provide expeditiously, during the term of this Agreement, such reports, data, and information as may be reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the state or federal government.
APPROVED
Packet Pg. 466 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. 01612806
(c) Final Project Summary. At the conclusion of the Project, the Recipient must submit a draft Final Project Summary to the Grant Manager for review and approval. The draft Final Project Summary shall contain a brief summary of the Project, including accomplishments, before and after pictures, as appropriate. The draft Final Project Summary shall be in a format provided by the Grant Manager. Following comments from the Grant Manager, the Recipient shall submit the revised Final Project Summary for review and approval and shall upload an electronic copy of the final Project Summary to the FAAST system.
APPROVED
Packet Pg. 467 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) B.1 Project Funding.
EXHIBIT B - FUNDING PROVISIONS
University Enterprises, Inc.
Agreement No. D1612806
Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds as a grant in the amount of up to seven million and no cents ($7,000,000).
B.2 Estimated Reasonable Project Cost.
The estimated reasonable cost of the total Project is seven million and no cents ($7,000,000).
B.3 Funding Dates.
(a) The Eligible Start Date is September 1, 2016. Otherwise eligible costs incurred prior to this date will not be reimbursed, unless otherwise specified in Exhibit D. (b) The Final Disbursement Request Date is November 30, 2019. The Deputy Director of the Division may extend this date for good cause. Extensions may require an amendment to this Agreement.
All disbursement requests must be submitted to the Division such that they are received prior to this date. Late disbursement requests will not be honored and remaining amounts will be deobligated.
(c) The term of this agreement is from the Start Date on the cover page of this Agreement to the End Date of August 31, 2055.
B.4 Budget Summary.
LINE ITEM PROJECT FUNDS TOTAL COSTS (GRANT)
Personnel/Specific Staff $1,422,997 $1,422,997
Expenses and Suoolies $78,127 $78,127
Soecial Punoose Eauioment />5,000\ $0 $0
Travel $117,864 $117,864
Professional and Consultant Services $4,100,000 $4,100,000 Indirect Costs $1,281,012 $1,281,012
TOTAL $7,000,000 $7,000,000
B.5 Budget Flexibility.
(a) Subject to the prior review and approval of the Grant Manager, adjustments between existing line item(s) may be used to defray allowable direct costs up to fifteen percent (15%) of the total amount, including any amendment(s) thereto. Line item adjustments in excess of fifteen percent (15%) require an Agreement amendment.
(b) The Recipient may submit a request for an adjustment in writing to the Grant Manager. Such adjustment may not increase or decrease the total grant amount. The Recipient shall submit a copy of the original Agreement Budget sheet refiecting \he requested changes and shall note proposed changes by striking out the original amount(s) followed with proposed change(s) in bold and underlined. Budget adjustments deleting a budget line item or adding a new budget line item shall require a formal amendment. The Division may also propose budget adjustments. (c) The sum of adjusted line items shall not exceed the total budget amount.
APPROVED
Packet Pg. 468 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) B.6 Disbursement of Project Funds; Availability of Project Funds.
University Enterprises, Inc.
Agreement No. D1612806
(a) The State Water Board's obligation to disburse Project Funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason, including but not limited to failure of the State government to appropriate funds necessary for disbursement of Project Funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement. Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other recipient. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding. If this Agreement's funding for any fiscal year is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an amendment to the Recipient to reflect the reduced amount.
(b) Except as may be otherwise provided in this Agreement, disbursement of Project Funds will be made as follows:
(1) Upon execution and delivery of this Agreement, the Recipient may request disbursement for eligible Project Costs as specified in this Exhibitfrom the Project Funds through submission to the State Water Board of disbursement requests using the disbursement request form provided by the Grant Manager.
(2) Disbursement requests shall contain the following information:
a. The date of the request;
b. The time period covered by the request, i.e., the term "from" and "to"; c. The total amount requested;
d. Documentation of match
e. Original signature and date (in ink) of Recipient's Authorized Representative; and, f. The Final Disbursement Request shall be clearly marked "FINAL DISBURSEMENT REQUEST" and shall be submitted NO LATER THAN .
November 30, 2019.
(3) Requests must be itemized based on the line items specified in the budget in this Exhibit.
Requests must be signed by the Authorized Representative, Project Director, or designee and must be addressed to the Grant Manager as set forth in the Party Contacts section of this Agreement. Requests for disbursement submitted in any other format than the one provided by the State Water Board will cause a request for disbursement to be disputed. In the event of such a dispute, the Grant Manager will notify the Recipient. Payment will not be made until the dispute is resolved and a corrected request submitted. The Grant Manager has the responsibility for approving requests for disbursement. Requests must be complete and executed by the Recipient. Project Costs incurred prior to the Eligible Start Date of this Agreement will not be funded.
(4) Project Funds must be requested at least quarterly, not more than monthly, for eligible costs incurred during the reporting period of the corresponding Progress Report, describing the activities and expenditures for which the disbursement is being requested.
APPROVED
Packet Pg. 469 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. 01612806
(5) The Recipient agrees that it will not request disbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of disbursement request.
Supporting documentation (e.g., receipts) must be submitted with each disbursement request. Disbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed disbursement request.
(6) The Recipient may request reimbursement for actual (not budgeted) indirect costs. This may include reasonable cost of items necessary for the implementation and management of the Project, such as: rent, utilities (gas electric, water, sewer trash, internet, etc.), janitorial services, reasonable maintenance and repairs, pest control, landscaping, equipment (workstation, fax machines, computers, printers, copiers, postage machines, servers, data storage), office supplies (paper clips, staples, paper, etc.), printing, shipping, shredding, postage, courier service; telephone, document storage, insurance (general liability, professional liability, workers compensation (if not already reflected as part of fringe), and support staff (such as procurement services, accounting, information technology, human resources, training and staff development).
Any costs ineligible for reimbursement through this Agreement should be excluded prior to requesting reimbursement. Examples of ineligible costs include: p.atents or copyrights, bank fees or service charges, taxes, licenses, interest, existing indebtedness, amortization, depreciation, losses, damages or settlements, fines or penalties, fees related to incorporation, co.sts related to establishment or reorganization, insurance deductibles, lobbying, legal defense or prosecution costs, litigation, advertising, contributions to other nonprofits or events, public relations, marketing, employee appreciation, scholarships or tuition fees, employee relocation, conference attendance, subscriptions or publication fees, membership dues, entertainment, meals, refreshments, alcoholic beverages decorations, childcare or stipends for meeting participants, profit or markup by the grantee, contractor or subcontractor markup fees, auto insurance (state mileage rates already include compensation for such costs), travel costs non consis.tent with State travel policies, miscellaneous costs, contingencies, other costs deemed by Grant Manager to be unreasonable, excessive, inappropriate or not related to the purposes of the grant.
It is the Recipient's responsibility to verify that ineligible costs are not claimed, and to maintain backup documentation and source documents to support indirect cost accounting. All such documentation must be available in the case of an audit. No costs invoiced as part of indirect costs should be included elsewhere as a direct cost Fringe should be included in personnel.
(7) The Recipient will not seek reimbursement of any Project Costs that have been reimbursed from other funding sources.
(8) Recipient shall spend Project Funds within 30 days of receipt. Any interest earned on Project Funds shall be reported to the State Water Board and will either be required to be returned to the State Water Board or deducted from future disbursements. In the event that the Recipient fails to disburse Project Funds to contractors or vendors within thirty (30) days from receipt of the funds, the Recipient shall immediately return such funds to the State Water Board. Interest shall accrue on such funds from the date of disbursement through the date of mailing of funds to the State Water Board .. If the Recipient held such funds in interest-bearing accounts, any interest earned on the funds shall also be due to the State Water Board.
APPROVED
Packet Pg. 470 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. D1612806
Page18of28
(9) Recipient shall request its final disbursement no later than the Final Disbursement Request Date specified herein unless prior approval is granted by the Division. If the Recipient fails to do so, then the undisbursed balance of this Agreement will be deobligated. (1 O)The Recipient agrees that it will not request a disbursement unless that cost is allowable, reasonable, and allocable.
(11 )Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner that is in violation of or in conflict with federal or state laws, policies, or regulations.
(12)The Recipient agrees that it shall not be entitled to interest earned on undisbursed Project Funds.
(13)Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at http://www.calhr.ca.gov/employees/Paqes/travel-reimbursements.aspx. Reimbursement will be at the State travel and per diem amounts that are current as of the date costs are incurred by the Recipient. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the Grant Manager. (14)The Recipient must include any other documents or requests required or allowed under this· Agreement.
S.7 Withholding of Disbursements and Material Violations. (a) Notwithstanding any other provision of this Agreement, the Recipient agrees that the State Water Board may retain an amount equal to ten percent (10%) of the Project Funds until Project Completion. Any retained amounts due to the Recipient will be promptly disbursed to the Recipient, without interest, up·on Project Completion.
(b) The State Water Board may withhold all or any portion of the funds provided for by this Agreement in the event that:
(1) The Recipient has materially violated, or threatens to materially violate, any term, provision, condition, or commitment of this Agreement; or
(2) The Recipient fails to maintain reasonable progress toward Project Completion.
B.8 Remaining Balance.
In the event the Recipient does not request all of the funds encumbered under this Agreement, any remaining funds revert to the State.
B.9 Fraud and Misuse of Public Funds.
All requests for disbursement submitted shall be accurate and signed under penalty of perjury. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The· Recipient shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Recipient is seeking reimbursement shall no; be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of Project Funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder. Additionally, the Deputy Director of the Division may request
APPROVED
Packet Pg. 471 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. 01612806
an audit and refer the matter to the Attorney General's Office or the appropriate district attorney's office for criminal prosecution or the imposition of civil liability. (Civ. Code,§§ 1572-1573; Pen. Code,§§ 470, 489-490.)
APPROVED
Packet Pg. 472 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR)
EXHIBIT C - STANDARD TERMS AND CONDITIONS
C.1 Accounting and Auditing Standards.
University Enterprises, Inc.
Agreement No. 01612806
The Recipient must maintain Project accounts according to GAAP. The Recipient shall maintain GAAPcompliant Project accounts, including GAAP requirements relating to the reporting of infrastructure assets.
· C.2 Amendment.
No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral or written understanding or agreement not incorporated in this Agreement is binding on any of the parties.
C.3 Assignability.
This Agreement is not assignable by the Recipient, either in whole or in part.
C.4 Audit.
(a) The Division, at its option, may call for an audit of financial information relative to the Planning, where the Division determines that an audit is desirable to assure program integrity or where such an audit becomes necessary because of state or federal requirements. Where such an audit is called for, the audit shall be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient. The audit shall be in the form required by the Division. (b) Audit disallowances will be returned to the State Water Board. Failure to comply with audit disallowance provisions shall disqualify the Recipient from participating in State Water Board funding programs.
C.5 [Reserved]
C.6 Claims.
Any claim_ of the Recipient is limited to the rights, remedies, and claims procedures provided to the Recipient under this Agreement.
C.7 Competitive Bidding
Recipient shall adhere to any applicable state or local ordinance for competitive bidding and applicable labor laws.
If Recipient is a private entity, any construction contracts related in any way to the Planning shall be let by competitive bid procedures that ensure award of such contracts to the lowest responsible bidders.
Recipient shall not award a construction contract until a summary of bids and identification of the selected lowest responsible bidder is submitted to and approved in writing by the Division. Recipient must provide a full explanation if Recipient is proposing to award a construction contract to anyone other than the lowest responsible bidder.
C.8 Compliance with Law, Regulations, etc.
The Recipient agrees that it will, at all times, comply with and require its contractor and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements.
Without limitation of the foregoing, the Recipient agrees that, to the extent applicable, the Recipient will:
APPROVED
Packet Pg. 473 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) (a) Comply with the State Water Board's Policy;
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(b) Comply with and require compliance with the list of state laws (cross-cutters) in Section C-31 of this Agreement.
C.9 Conflict of Interest.
The Recipient certifies that its owners, officers, directors, agents, representatives, and employees are in compliance, and shall remain compliant through Project Completion, with applicable state and federal conflict of interest laws, including but not limited to laws related to conflict of interest laws related to contracting and procurement.
C.1 O Damages for Breach Affecting Tax-Exempt Status or Federal Compliance.
In the event that any breach of any of the provisions of this Agreement by the Recipient shall result in the loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, including bonds issued on behalf of the State Water Board, or if such breach shall result in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government by reason of any arbitrage profits, the Recipient shall 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. In the event that any breach of any of the provisions of this Agreement by the Recipient shall result in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach shall result in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient shall 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.
C.11 Disputes.
(a) The Recipient may 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.
(b) This clause 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.
(c) Recipient shall continue with the responsibilities under this Agreement during any dispute.
C.12 Financial Management System and Standards.
The Recipient agrees to 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 or state government and tracking of Project Funds to a level of expenditure adequate to establish that such funds have not been used in violation of federal or state law or the terms of this Agreement.
APPROVED
Packet Pg. 474 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) C.13 Governing Law.
University Enterprises, Inc.
Agreement No. 01612806
This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
C.14 Income Restrictions.
The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient under this Agreement shall be paid by the Recipient to the State, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State under this Agreement.
C.15 Indemnification and State Reviews.
The parties agree that review or approval of Project documents by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the Recipient of its responsibility to engage in proper planning. To the extent permitted by la'i'/, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board, and its officers, employees, and agents (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the trans.actions contemplated by this Agreement. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of this Agreement and the discharge of the Recipient's Obligation hereunder.
C.16 Independent Actor.
The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.
C.17 Integration.
This Agreement is the complete and final Agreement between the parties.
C.18 Non-Discrimination Clause.
(a) During the performance of this Agreement, Recipient and its contractors and subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual
APPROVED
Packet Pg. 475 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. D1612806
orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status. (b) The Recipient, its contractors, and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.
(c) The Recipient, its contractors, and subcontractors shall comply with the provisions of th_e Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov.
Code, §12990, subds. (a)-(f) et seq.; Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. (d) The Recipient, its contractors, and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
(e) The Recipient shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement.
C.19 No Third Party Rights.
The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this Agreeme~t, or of any duty, covenant, obligation, or undertaking established herein.
C.20 [Reserved]
C.21 Other Assistance.
If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient shall immediately notify the Grant Manager.
C.22 Permits, Contracting, Disqualification.
The Recipient shall comply in all material respects with all applicable federal, state and local laws, rules and regulations. Recipient shall procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work.
For any work related to this Agreement, the Recipient shall not contract with any individual or organization on the State Water Board's List of Disqualified Businesses and Persons that is identified as 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 funding under this Agreement is authorized. The State Water Board's List of Disqualified Businesses and Persons is located at http://www.waterboards.ca.gov/water issues/programs/ustcf/dbp.shtml.
C.23 Public Records.
The Recipient acknowledges that, except for a subset of information regarding archaeological records, the Project records and locations are public records, including but not limited to all of the submissions accompanying the application, all of the documents incorporated by reference into this Agreement, and all reports, disbursement requests, and supporting documentation submitted hereunder.
APPROVED
Packet Pg. 476 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) C.24 Prevailing Wages.
University Enterprises, Inc.
Agreement No. 01612806
The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. The Recipient shall monitor all agreements subject to reimbursement from this Agreementto ensure that the prevailing wage provisions of the State Labor Code are being met.
C.25 Professionals.
The Recipient agrees that only professionals with valid licenses in the State of California will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, or design, or other word requiring interpretation and proper application of engineering or geologic sciences shall be prepared by or under the direction of persons registered to practice in California. All technical reports must contain the statement of the qualifications of the responsible registered professional(s). Technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.
Any contractors, outside associates, or consultants required by the Recipient in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, if any, or as are specifically accepted in writing by the Grant Manager during the performance of this Agreement.
C.26 Public Funding.
This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances.
C.27 Recipient's Responsibility for Work.
The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for any and all disputes arising out of its contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.
C.28 Records.
Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the Recipient agrees to:
(a) Establish an official file for the Project which shall adequately document all significant actions relative to the Project;
(b) Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all assistance funds received under this Agreement; (c) Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to assistance funds disbursed under this Agreement;
(d) Establish an accounting system which will accurately depict final total costs of the Project, including both direct and indirect costs;
APPROVED
Packet Pg. 477 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. 01612806
(e) Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and
(f) If Force Account is used by the Recipient for the Project, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee. ·
(g) Maintain separate books, records and other material relative to the Project. (h) Retain such books, records, and other material for itself and for each contractor or subcontractor who performed work on this Project for a minimum of thirty-six (36) years after Work Completion.
The Recipient shall require that such books, records, and other material be subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the Bureau of State Audits, the Internal Revenue Service, the Governor, or any authorized representatives of the aforementioned, and shall allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar right regarding audit, interviews, and records retention in any subcontract related to the performance of this Agreement. The provisions of this section shall survive the term of this Agreement.
C.29 Related Litigation.
A Recipient is prohibited from using funds from any disbursement under this Agreement to pay costs associated with any litigation the Recipient pursues. Regardless of whether the Project or any eventual construction project is the subject of litigation, the Recipient agrees to complete the Project funded by the Agreement or to repay all Project Funds plus interest to the State Water Board.
C.30 Rights in Data.
The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request.
C.31 State Cross-Cutter Compliance.
Recipient represents and certifies that, to the extent applicable, it is in compliance with the following conditions precedent and agrees that it will continue to maintain compliance during the term of this Agreement:
(a) State Water Board's Drought Emergency Water Conservation regulations. Title 23, article 22.5 of the California Code of Regulations. The Recipient will include a discussion of its implementation in Progress Reports submitted pursuant to this Agreement. (b) California Environmental Quality Act (CEQA). Implementation and construction activities must comply with CEQA and potentially other environmental review requirements, including the National Environmental Policy Act (NEPA). Proceeding with work subject to CEQA and/or NEPA without environmental clearance by the State Water Board shall constitute a breach of a material provision of this Agreement. I/Technical Assistance work implemented per this Agreement will include ground disturbing activities (such as test wells, boreholes) implemented for the purposes
APPROVED
Packet Pg. 478 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. D1612806
of information collection, and proposed in an area(s) with potential for environmental impacts (including riparian habitat, wetland, endangered species habitat or sensitive cultural resources areas), the Recipient shall notify the Grant Manager of the nature and scope of such work and receive approval to proceed prior to commencing ground disturbing activities. (c) Water Code section 5103, subdivision (e)(2)(A). If Recipient is a water diverter, Recipient must maintain compliance by submitting monthly diversion reports to the Division of Water Rights of the State Water Resources Control Board.
(d) Labor Code sections 1725.5 and 1771.1. To bid for public works contracts, Recipient acknowledges that Recipient and Recipient's subcontractors must register with the Department of Industrial Relations.
(e) Water Code sections 526 and 527. If Recipient is an urban water supplier as defined by Water Code, it shall have complied and maintain compliance with sections 526 and 527 of the Water Code relating to installation of meters and volumetric charging. (f) Urban Water Management Planning Act 0fvater Code, § 1061 O et seq.). If Recipient is an "urban water supplier" as defined by Water Code section 10617, the Recipient certifies that it has submitted an Urban Water Management Plan that has been deemed complete by the Department of Water Resources and is in compliance with that plan. This shall constitute a condition precedent to this Agreement.
(g) Urban Water Demand Management Water Code section 10631.5, subdivision (a)(1 ). If Recipient is an "urban water supplier" as defined by Water Code section 10617, Recipient certifies that it is implementing water demand management measures approved by the Department of Water Resources.
(h) Delta Plan Consistency Findings. Water Code section 85225 and California Code of Regulations, title 23, section 5002. If Recipient is a state or local public agency and the proposed action is covered by the Delta Plan, Recipient will submit a certification of project consistency with the Delta Plan to the Delta Stewardship Council prior to undertaking the implementation/construction project associated with this Project.
(i) Agricultural Water Management Plan Consistency. A Recipient that is an agricultural water supplier as defined by section 10608.12 of the Water Code must comply with the Agricultural Water Management Planning Act. 0fvat. Code, § 10800 et seq.) U) Charter City Project Labor Requirements. Labor Code section 1782 and Public Contract Code section 2503:
(1) Prevailing Wage
Where Recipient is a charter city or a joint powers authority that includes a charter city, Recipient certifies that no charter provision nor ordinance authorizes a construction project contractor not to comply with Labor Code's prevailing wage rate requirements, nor, within the prior two years (starting from January 1, 2015 or after) has the city awarded a public works contract without requiring the contractor to comply with such wage rate requirements according to Labor Code section 1782. (2) Labor Agreements
Where Recipient is a charter city or a Joint powers authority that includes a charter city, Recipient certifies that no charter provision, initiative, or ordinance limits or constrains the
APPROVED
Packet Pg. 479 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
Agreement No. 01612806
city's authority or discretion to adopt, require, or utilize project labor agreements that include all the taxpayer protection antidiscrimination provisions of Public Contract Code section 2500 in construction projects, and that Recipient is accordingly eligible for state funding or financial assistance pursuant to Public Contract Code section 2503.
C.32 State Water Board Action; Costs and Attorney Fees.
The Recipient agrees that any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the State Water Board as a result of breach of this Agreement by the Recipient, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.
C.33 Termination; Immediate Acceleration; Interest.
(a) This Agreement may be terminated at any time prior to the End Date set forth on the cover and in Exhibit B, at the option of the State Water Board, upon violation by the Recipient of any material provision of this Agreement after such violation has been called to the attention of the Recipient and after failure of the Recipient to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the Division. (b). In the event of such termination, the Recipient agrees, upon demand, to immediately repay to the State Water Board an amount equal to Project Funds disbursed hereunder, accrued interest, penalty assessments, and Additional Payments. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the Recipient to the date all monies due have been received by the State Water Board.
C.34 Timeliness.
Time is of the essence in this Agreement.
C.35 Unenforceable Provision.
In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.
C.36 Venue.
The State Water Board and the Recipient hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.
C.37 Waiver and Rights of the State Water Board.
Any waiver of rights by the State Water Board with respect to a default or other matter arising under the Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter.
Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any other rights and remedies provided by law.
APPROVED
Packet Pg. 480 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR)
EXHIBIT D - SPECIAL CONDITIONS
Recipient acknowledges and agrees to the following special conditions:
None
University Enterprises, Inc.
Agreement No. D1612806
APPROVED
Packet Pg. 481 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) June 13, 2019
University Enterprises, Inc
Attn: Monica Kauppinen, Director
6000 J Street, Bookstore Building, Suite 3400
Sacramento, CA 95819
Agreement Number: D16-12806
Enclosed is your amended Funding Agreement for your approval and signature. This Agreement cannot be considered binding by either party until executed by the State Water Resources Control Board (“State Water Board”).
If in agreement with all terms and conditions of the Agreement, please have the Authorized Representative, as noted in the executed resolution, sign and return two (2) signature pages no later than thirty (30) calendar days from the date of this letter to:
US Mail Overnight Mail
Koreenia Lazo Koreenia Lazo
State Water Resources Control Board State Water Resources Control Board Division of Financial Assistance Division of Financial Assistance P.O. Box 944212 1001 I Street, 16th Floor
Sacramento, CA 94244-2120 Sacramento, CA 95814
Ms. Lazo may be contacted at (916) 319-0807 or [email protected] Once the Agreement is signed by both parties, we will forward an executed copy to you for your entity’s records.
Enclosures
APPROVED
Packet Pg. 482 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) PROPOSITION 1
TECHNICAL ASSISTANCE
UNIVERSITY ENTERPRISES, INC.
AND
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD
TECHNICAL ASSISTANCE GRANT
DRINKING WATER AND WASTEWATER TECHNICAL ASSISTANCE AND OUTREACH CALSTARS AGREEMENT No. D1612806
FI$CAL AGREEMENT NO. SWRCB0000000000D161280600
AMENDMENT NO. 1
AMOUNT: $7,000,000
ELIGIBLE START DATE: September 1, 2016
WORK COMPLETION DATE: August 31, 2019June 30, 2021
FINAL DISBURSEMENT REQUEST DATE: November 30, 2019September 30, 2021 RECORDS RETENTION TERM END DATE: August 31, 2055June 30, 2057 This Agreement executed by the State Water Board on October 26, 2016, is hereby amended and restated, to revise the Exhibits A & B (deletions shown as stricken and revisions in bold and underlined). Except as noted herein all other terms and conditions shall remain the same. Please note, page numbers may have changed.
APPROVED
Packet Pg. 483 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
WHEREAS,
1. The State Water Board is authorized to provide funding under this Agreement pursuant to the following:
• Proposition 1 Small Community Grants and Drinking Water - Section 79720-79725 of the Water Code (Prop 1)
2. The State Water Board determines eligibility for financial assistance, determines a reasonable schedule for providing financial assistance, establishes compliance with the Prop 1, and establishes the terms and conditions of a funding agreement.
3. The Recipient has applied to the State Water Board for funding for the Project described in Exhibit A of this Agreement and the State Water Board has selected the application for funding through a competitive process.
4. The State Water Board proposes to assist in funding the costs of the Project, and the Recipient desires to participate as a recipient of financial assistance from the State Water Board, upon the terms and conditions set forth in this Agreement, all pursuant to Prop 1; NOW, THEREFORE, in consideration of the premises, mutual representations, covenants and agreements in this Agreement, the State Water Board and the Recipient, each binding itself, its successors and assigns, do mutually promise, covenant, and agree as follows:
1. Definitions.
Unless otherwise specified, each capitalized term used in this Agreement has the following meaning:
"Agreement" means this Grant, including all exhibits and attachments hereto. "Authorized Representative" means the duly appointed representative of the Recipient as set forth in the certified original of the Recipient’s authorizing resolution that designates the authorized representative by title.
“Days” means calendar days unless otherwise expressly indicated. “Disbursement Period” means the period during which Project Funds may be disbursed. "Division" means the Division of Financial Assistance of the State Water Board or any other segment of the State Water Board authorized to administer the funding program(s) set forth in Section 1. “Eligible Start Date” means the date set forth in Exhibit B, establishing the date on or after which Project Costs may be incurred and eligible for reimbursement hereunder. “Final Disbursement Request Date” means the date established in Exhibit B, after which date, no further Project Funds disbursements may be requested.
"Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year. "Force Account" means the use of the Recipient's own employees or resources for the Project.
APPROVED
Packet Pg. 484 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
“GAAP” means generally accepted accounting principles, as issued by the Governmental Accounting Standards Board.
“Grant Manager” means the person designated by the State Water Board to manage performance of the Agreement. The Grant Manager is set forth in Section 2 of this agreement. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the Project (i.e., costs that are not directly related to the Project).
“Party Contact” means, for the Recipient, the Authorized Representative of the Recipient or any designee of the Authorized Representative, and, for the State Water Board, the Grant Manager, or the Program Analyst.
“Policy” means the Proposition 1 Technical Assistance Funding Plan, as amended from time to time. “Project” means the Project as described in Exhibit A and in the documents incorporated by reference. “Project Completion" means, as determined by the Division, that the Project is complete to the reasonable satisfaction of the Division and is the last date on which Project Costs may be incurred. Work occurring after Project Completion is not eligible for reimbursement under this Agreement. "Project Costs" means the incurred costs of the Recipient which are eligible under this Agreement, which are allowable costs as defined under the Policy, and which are reasonable, necessary and allocable by the Recipient to the Project under GAAP.
“Project Director” means an employee of the Recipient designated by the Authorized Representative to be responsible for the overall management of the administrative and technical aspects of the executed Agreement. The Project Director is set forth in Section 2 of this Agreement. “Project Funds” means funds disbursed by the State Water Board to the Recipient for purposes of this Agreement.
“Recipient” means University Enterprises, Inc.
“Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water Quality Control Board.
“State” means State of California.
“State Water Board” means the State Water Resources Control Board, an administrative and regulatory agency of the State of California.
“Technical Assistance Recipient” means the small disadvantaged community or communities identified in the Work Plan(s).
“Work Completion” means the Recipient’s submittal of all work set forth under Exhibit A for review and approval by the Division. The Division may require corrective work to be performed prior to Project Completion.
“Work Completion Date” means the date set forth in Exhibit A that is the last date on which all work or submittals in Exhibit A must be achieved.
APPROVED
Packet Pg. 485 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
“Year” means calendar year unless otherwise expressly indicated.
2. Party Contacts.
The Party Contacts during the term of this Agreement are:
State Water Board Recipient
Section: Office of Sustainable Water Solutions
Name: Diana Conkle
Nabiul Afrooz, Grant Manager
Name: Monica Kauppinen, Project Director
Address: 1001 I street Address: 6000 J Street,
Bookstore Building, Suite 3400
City, State, Zip: Sacramento, CA, 95814 City, State, Zip: Sacramento, CA, 95819-6111 Phone: (916) 341-5660 323-9322 Phone: (916) 278-7380
Fax: (916) 341-5707 Fax: (916) 278-4886
Email: [email protected]
[email protected]
Email: [email protected]
The Recipient may change its Project Director upon written notice to the Grant Manager, which notice shall be accompanied by authorization from the Recipient’s Authorized Representative. The State Water Board will notify the Project Director of any changes to its Party Contacts.
3. Exhibits and Appendices Incorporated.
The following exhibits and appendices to this Agreement, including any amendments and supplements hereto, are hereby incorporated herein and made a part of this Agreement:
EXHIBIT A – SCOPE OF WORK
EXHIBIT B – FUNDING PROVISIONS
EXHIBIT C – STANDARD TERMS AND CONDITIONS
EXHIBIT D – SPECIAL CONDITIONS
4. Recipient Representations and Commitments.
The Recipient represents, warrants, and commits to the following as of the date signed by the Recipient and continuing thereafter for the term of the Agreement:
(a) General Commitments. The Recipient accepts and agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and commitments made by the Recipient in its application, accompanying documents, and communications filed in support of its request for financial assistance and throughout the term of this Agreement. (b) Authorization and Validity. The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized. This Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.
(c) No Violations. 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
APPROVED
Packet Pg. 486 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
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Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
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 first page hereof. (d) No Litigation. There are no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which affect the financial condition or operations of the Recipient and/or the Project. (e) Solvency. None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. As of the date set forth on the first page hereof, Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. Recipient is able to pay its debts as they become due.
(f) Legal Status and Eligibility. Recipient is duly organized and existing and in good standing under the laws of the State of California, and will remain so during the term of this Agreement.
Recipient shall at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. Recipient shall maintain its eligibility for funding under this Agreement for the term of this Agreement.
(g) Good Standing. The Recipient is currently in compliance with the state requirements set forth in Exhibit C. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with previous state audit disallowances.
(h) Insurance. Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example, but not necessarily limited to, General Liability, Automobile Liability, Worker’s Compensation and Employer’s Liability, Professional Liability.
5. Project Completion.
The Recipient shall expeditiously proceed with and complete the Project in accordance with this Agreement.
6. Notice.
(a) The Recipient shall notify the Division in writing within five (5) working days of the occurrence of the following:
(1) Bankruptcy, insolvency, receivership or similar event of the Recipient; (2) Actions taken pursuant to state law in anticipation of filing for bankruptcy; (b) The Recipient shall notify the Division within 10 working days of the following:
(1) Any litigation pending or threatened against Recipient regarding its continued existence, consideration of dissolution, or disincorporation;
(c) The Recipient shall notify the Division promptly of the following:
(1) Any proposed change in scope of the Project. Most changes will require an amendment to this Agreement;
(2) Cessation of work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more;
APPROVED
Packet Pg. 487 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
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Amendment No. 1
(3) Any circumstance, combination of circumstances, or condition, which is expected to or does delay Work Completion for a period of ninety (90) days or more beyond the estimated date previously provided to the Division;
(4) Any monitoring activities such that the State Water Board and/or Regional Water Quality Control Board staff may observe and document such activities; (5) 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; or (6) Work Completion, and Project Completion.
7. No Obligation of the State; State Budget Act Contingency.
Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the State and any such obligation shall be payable solely out of the moneys appropriated by the State Legislature to the State Water Board from the special fund associated with this Agreement.
If the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any payments under this Agreement. In this event, the State shall have no liability to pay any funds whatsoever to Recipient or to furnish any other considerations under this Agreement and Recipient shall not be obligated to perform any provisions of this Agreement. Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for payment over any other recipient.
If this Agreement’s funding for any Fiscal Year is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an Agreement amendment to the Recipient to reflect the reduced amount.
APPROVED
Packet Pg. 488 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
IN WITNESS WHEREOF, this AgreementAmendment has been executed by the parties hereto.
UNIVERSITY ENTERPRISES, INC.:
By: ____________________________________
Name: Monica Kauppinen
Title: Director
Sponsored Programs Administration
Date: __________________________________
STATE WATER RESOURCES CONTROL BOARD:
By: ____________________________________
Name: Leslie Laudon
Title: Deputy Director
Division of Financial Assistance
Date: __________________________________
APPROVED
Packet Pg. 489 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT A – SCOPE OF WORK
A.1 Completion Dates.
The Work Completion Date is established as August 31, 2019June 30, 2021. The Recipient shall deliver any request for extension of the Work Completion date no less than 90 days prior to the Work Completion Date. The Division will not unreasonably deny such a timely request, but the Division may deny requests received after this time.
A.2 Purpose.
This grant is for the benefit of the Recipient. This grant is for the benefit of the Technical Assistance Recipient identified in the Work Plan or Work Plans. Its purpose is for the provision of technical assistance to small disadvantaged communities to develop, fund, and implement their capital improvement projects.
A.3 Scope of Work.
The Recipient agrees to do the following:
The Division accepts requests for technical assistance on a continuous basis. The Division may refer eligible assistance requests (ARs) to the Recipient. After accepting an AR, the Recipient will determine what specific assistance it plans to provide and will submit a technical assistance Work Plan with estimated deliverables and due dates for Division approval. The technical assistance proposed in a given Work Plan shall be consistent with the general technical assistance tasks outlined below, and the grantee shall implement technical assistance consistent with Division-approved work plans, or amendments thereto, including timely submittal of deliverables within the approved Work Plan budget. Each approved Work Plan shall constitute an amendment to this Agreement and must be signed and dated by the Deputy Director of the Division or designee and the Authorized Representative, Project Director, or designee to be effective.
(a) Scoping: The purpose of this task is to define the project and prepare a work plan. (1) Characterize challenges and potential solutions
(2) Conduct kickoff meeting to discuss path forward
(3) Prepare project work plan
(b) Pre-Planning: The purpose of this task is to determine whether to consolidate or improve the water and/or wastewater system(s).
(1) Conduct Community Outreach
a. Prepare/implement outreach strategy
b. Assess community interest in the project
c. Conduct/document community meetings
d. Prepare/distribute communication materials
e. Conduct pre-project socio-economic assessment to establish baseline
APPROVED
Packet Pg. 490 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
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Amendment No. 1
EXHIBIT A – SCOPE OF WORK
(2) Conduct a Median Household Income (MHI) Survey
(3) Evaluate Consolidation Feasibility
a. Identify potential facilities within a five-mile radius b. Initiate contact with candidate facility owners
c. Conduct cost-benefit analysis of consolidation construction
d. Evaluate organization of restructured water and/or wastewater system(s) e. Prepare preliminary agreements to participate in facility consolidation f. Evaluate and document Local Agency Formation Commission (LAFCO) requirements g. Evaluate governance options
h. Facilitate decision-making process
i. Prepare consolidation commitments (e.g. board resolution) j. Assist with formation of new entity
(4) Conduct Technical, Managerial, and Financial Assessment and Assistance a. Evaluate whether water quality meets regulatory limits (either through review of existing data or through sampling and analysis)
b. Develop or update policy manual
c. Develop or update financial policy
d. Develop or update budget and projects/capital improvement and asset management plans
e. Develop or update operations and maintenance plans
f. Determine scope and budget for planning
g. Assist in preparing Drinking Water State Revolving Fund (DWSRF) and/or Clean Water State Revolving Fund (CWSRF) planning financing application
h. Provide grant/funding administration
i. Assist in procurement of professional services
(c) Planning: The purpose of this task is to conduct or review studies and prepare or review conceptual, pre-, and final designs for the water and/or wastewater system improvements.
APPROVED
Packet Pg. 491 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT A – SCOPE OF WORK
(1) Conduct Community Outreach
a. Implement outreach strategy
b. Conduct/document community meetings
c. Prepare/distribute communication materials
(2) Conduct Detailed Evaluation of Drinking Water Source, and Treatment and Distribution Systems
a. Water quality (raw supply and distribution system)
i. Conduct hydrogeologic and geotechnical evaluations, as appropriate b. Capacity (supply, treatment and storage)
i. Conduct hydrogeologic and geotechnical evaluations, as appropriate c. Leak detection and water audits
d. Condition assessment/expected facility life
e. Energy use/efficiency
(3) Identify Needed Water System Improvements
a. Additional source water (surface, ground or recycled)
b. Facilities needing retrofitting (source, treatment, storage, distribution) c. Facilities needing replacement (source, treatment, storage, distribution) d. New facilities (source, treatment, storage, distribution)
e. Identify and evaluate alternative solutions – consider non-cost and cost benefits and recommend solution(s)
(4) Conduct a Detailed Evaluation of Wastewater System
a. Wastewater quality (pre- and post-treatment)
b. Capacity (collection, treatment and disposal)
i. Conduct hydrogeologic and geotechnical evaluations, as appropriate c. Septic to sewer conversions
d. Leak detection
e. Condition assessment/expected facility life
APPROVED
Packet Pg. 492 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT A – SCOPE OF WORK
f. Energy use/efficiency
(5) Identify Needed Wastewater System Improvements
a. Facilities needing retrofitting (collection, treatment and disposal) b. Facilities needing replacement (collection, treatment and disposal) c. New facilities (collection, treatment and disposal)
d. Identify and evaluate alternative solutions – consider non-cost and cost benefits and recommend solution
(6) Provide Environmental Services
a. Identify strategy to meet environmental requirements (e.g. CEQA, other) b. Prepare permit applications and reports (e.g. domestic water supply permit, Report of Waste Discharge, etc.)
(7) Provide Design or Design Review Services
a. Conceptual (10%) design, cost estimate, and delivery method (e.g. conventional or design/build) for selected solution
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Water distribution
iv. Wastewater collection
v. Wastewater treatment
vi. Effluent disposal
b. Pilot studies
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Wastewater treatment
iv. Effluent disposal
c. Preliminary (30%) design (including engineer’s estimate and supporting drawings, as appropriate)
i. Water supply (e.g. wells or other)
APPROVED
Packet Pg. 493 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT A – SCOPE OF WORK
ii. Water treatment
iii. Water distribution
iv. Wastewater collection
v. Wastewater treatment
vi. Effluent disposal
d. Detailed (100%) design (including detailed engineer’s estimate and plans and specifications, as appropriate)
i. Water supply (e.g. wells or other)
ii. Water treatment
iii. Water distribution
iv. Wastewater collection
v. Wastewater treatment
vi. Effluent disposal
(8) Provide Management Support
a. Prepare Request for Proposal (RFP) for detailed designer(s) or contractor(s) (depending on delivery method)
b. Provide support during bidding
i. Answer questions during the bid period and prepare addenda ii. Evaluate bids and make recommendation to award
c. Conduct rate study
d. Support Proposition 218 compliance
e. Prepare relevant service, management, operating, or joint powers agreement(s) f. Prepare consolidation agreement(s)
g. Assist in preparing a DWSRF or CWSRF construction funding application h. Prepare resolutions, certifications, and legal opinions (d) Construction: The purpose of this task is to oversee construction and commissioning of water system improvements.
APPROVED
Packet Pg. 494 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT A – SCOPE OF WORK
(1) Conduct Community Outreach
a. Implement outreach strategy
b. Conduct/document community meetings
c. Prepare/distribute communication materials
d. Prepare post-project socio-economic assessment
(2) Provide Technical Support
a. Conduct periodic inspections
b. Answer contractor requests for information
c. Review contractor construction schedule
d. Review equipment technical submittals
e. Prepare construction change orders
f. Review contractor pay requests and receive certified payrolls
g. Receive certifications of proper installation
h. Review materials and performance testing
i. Schedule operator training by contractor
j. Monitor facility start-up
k. Coordinate completion of record drawings for facilities and locations (3) Provide Managerial Support
a. Update operations and maintenance documentation, as appropriate b. Provide training
c. Perform contract closeout
d. Manage warranty services
e. Prepare emergency response plan
(4) Provide Financial Management Support
a. Assist in funding administration
APPROVED
Packet Pg. 495 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT A – SCOPE OF WORK
Related technical assistance tasks not specifically listed above, but consistent with the general scope and types of technical assistance described above may be included in a technical assistance Work Plan subject to Division approval.
A.4 Reporting.
(a) Progress Reports. The Recipient shall submit quarterly progress reports to the Grant Manager within thirty (30) days following the end of the calendar quarter (March, June, September, and December). Progress Reports shall provide a brief description of activities that have occurred, milestones achieved, monitoring results (if applicable), and any problems encountered in the performance of the work under this Agreement during the applicable reporting period. Reporting shall be required even if no grant related activities occurred during the reporting period. The Recipient shall document all activities and expenditures in progress reports, including work performed by contractors. Progress reports must be signed by the Authorized Representative, Project Director, or designee.
(b) As Needed Information or Reports. The Recipient agrees to provide expeditiously, during the term of this Agreement, such reports, data, and information as may be reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the state or federal government. (c) Final Project Summary. At the conclusion of the Project, the Recipient must submit a draft Final Project Summary to the Grant Manager for review and approval. The draft Final Project Summary shall contain a brief summary of the Project, including accomplishments, before and after pictures, as appropriate. The draft Final Project Summary shall be in a format provided by the Grant Manager. Following comments from the Grant Manager, the Recipient shall submit the revised Final Project Summary for review and approval and shall upload an electronic copy of the final Project Summary to the FAAST system.
APPROVED
Packet Pg. 496 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT B – FUNDING PROVISIONS
B.1 Project Funding.
Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds as a grant in the amount of up to seven million and no cents ($7,000,000).
B.2 Estimated Reasonable Project Cost.
The estimated reasonable cost of the total Project is seven million and no cents ($7,000,000).
B.3 Funding Dates.
(a) The Eligible Start Date is September 1, 2016. Otherwise eligible costs incurred prior to this date will not be reimbursed, unless otherwise specified in Exhibit D. (b) The Final Disbursement Request Date is November 30, 2019September 30, 2021. The Deputy Director of the Division may extend this date for good cause. Extensions may require an amendment to this Agreement. All disbursement requests must be submitted to the Division such that they are received prior to this date. Late disbursement requests will not be honored and remaining amounts will be deobligated.
(c) The term of this agreement is from the Start Date on the cover page of this Agreement to the End Date of August 31, 2055June 30, 2057.
B.4 Budget Summary.
LINE ITEM PROJECT FUNDS
(GRANT) TOTAL COSTS
Personnel/Specific Staff $1,422,997 $1,422,997
Expenses and Supplies $78,127 $78,127
Special Purpose Equipment (>5,000) $0 $0
Travel $117,864 $117,864
Professional and Consultant Services $4,100,000 $4,100,000 Indirect Costs $1,281,012 $1,281,012
TOTAL $7,000,000 $7,000,000
B.5 Budget Flexibility.
(a) Subject to the prior review and approval of the Grant Manager, adjustments between existing line item(s) may be used to defray allowable direct costs up to fifteen percent (15%) of the total amount, including any amendment(s) thereto. Line item adjustments in excess of fifteen percent (15%) require an Agreement amendment.
(b) The Recipient may submit a request for an adjustment in writing to the Grant Manager. Such adjustment may not increase or decrease the total grant amount. The Recipient shall submit a copy of the original Agreement Budget sheet reflecting the requested changes and shall note proposed changes by striking out the original amount(s) followed with proposed change(s) in bold and underlined. Budget adjustments deleting a budget line item or adding a new budget line item shall require a formal amendment. The Division may also propose budget adjustments. (c) The sum of adjusted line items shall not exceed the total budget amount.
APPROVED
Packet Pg. 497 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT B – FUNDING PROVISIONS
B.6 Disbursement of Project Funds; Availability of Project Funds. (a) The State Water Board's obligation to disburse Project Funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason, including but not limited to failure of the State government to appropriate funds necessary for disbursement of Project Funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement. Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other recipient. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding. If this Agreement’s funding for any fiscal year is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an amendment to the Recipient to reflect the reduced amount.
(b) Except as may be otherwise provided in this Agreement, disbursement of Project Funds will be made as follows:
(1) Upon execution and delivery of this Agreement, the Recipient may request disbursement for eligible Project Costs as specified in this Exhibit from the Project Funds through submission to the State Water Board of disbursement requests using the disbursement request form provided by the Grant Manager.
(2) Disbursement requests shall contain the following information:
a. The date of the request;
b. The time period covered by the request, i.e., the term “from” and “to”; c. The total amount requested;
d. Documentation of match
e. Original signature and date (in ink) of Recipient’s Authorized Representative; and, f. The Final Disbursement Request shall be clearly marked “FINAL DISBURSEMENT REQUEST” and shall be submitted NO LATER THAN
November 30, 2019September 30, 2021.
(3) Requests must be itemized based on the line items specified in the budget in this Exhibit.
Requests must be signed by the Authorized Representative, Project Director, or designee and must be addressed to the Grant Manager as set forth in the Party Contacts section of this Agreement. Requests for disbursement submitted in any other format than the one provided by the State Water Board will cause a request for disbursement to be disputed. In the event of such a dispute, the Grant Manager will notify the Recipient. Payment will not be made until the dispute is resolved and a corrected request submitted. The Grant Manager has the responsibility for approving requests for disbursement. Requests must be complete and executed by the Recipient. Project Costs incurred prior to the Eligible Start Date of this Agreement will not be funded.
APPROVED
Packet Pg. 498 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT B – FUNDING PROVISIONS
(4) Project Funds must be requested at least quarterly, not more than monthly, for eligible costs incurred during the reporting period of the corresponding Progress Report, describing the activities and expenditures for which the disbursement is being requested. (5) The Recipient agrees that it will not request disbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of disbursement request.
Supporting documentation (e.g., receipts) must be submitted with each disbursement request. Disbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed disbursement request.
(6) The Recipient may request reimbursement for actual (not budgeted) indirect costs. This may include reasonable cost of items necessary for the implementation and management of the Project, such as: rent, utilities (gas electric, water, sewer trash, internet, etc.), janitorial services, reasonable maintenance and repairs, pest control, landscaping, equipment (workstation, fax machines, computers, printers, copiers, postage machines, servers, data storage), office supplies (paper clips, staples, paper, etc.), printing, shipping, shredding, postage, courier service, telephone, document storage, insurance (general liability, professional liability, workers compensation (if not already reflected as part of fringe), and support staff (such as procurement services, accounting, information technology, human resources, training and staff development).
Any costs ineligible for reimbursement through this Agreement should be excluded prior to requesting reimbursement. Examples of ineligible costs include: patents or copyrights, bank fees or service charges, taxes, licenses, interest, existing indebtedness, amortization, depreciation, losses, damages or settlements, fines or penalties, fees related to incorporation, costs related to establishment or reorganization, insurance deductibles, lobbying, legal defense or prosecution costs, litigation, advertising, contributions to other nonprofits or events, public relations, marketing, employee appreciation, scholarships or tuition fees, employee relocation, conference attendance, subscriptions or publication fees, membership dues, entertainment, meals, refreshments, alcoholic beverages decorations, childcare or stipends for meeting participants, profit or markup by the grantee, contractor or subcontractor markup fees, auto insurance (state mileage rates already include compensation for such costs), travel costs non consistent with State travel policies, miscellaneous costs, contingencies, other costs deemed by Grant Manager to be unreasonable, excessive, inappropriate or not related to the purposes of the grant.
It is the Recipient’s responsibility to verify that ineligible costs are not claimed, and to maintain backup documentation and source documents to support indirect cost accounting. All such documentation must be available in the case of an audit. No costs invoiced as part of indirect costs should be included elsewhere as a direct cost. Fringe should be included in personnel.
(7) The Recipient will not seek reimbursement of any Project Costs that have been reimbursed from other funding sources.
(8) Recipient shall spend Project Funds within 30 days of receipt. Any interest earned on Project Funds shall be reported to the State Water Board and will either be required to be returned to the State Water Board or deducted from future disbursements. In the event that the Recipient fails to disburse Project Funds to contractors or vendors within thirty (30) days from
APPROVED
Packet Pg. 499 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT B – FUNDING PROVISIONS
(9) receipt of the funds, the Recipient shall immediately return such funds to the State Water Board. Interest shall accrue on such funds from the date of disbursement through the date of mailing of funds to the State Water Board. If the Recipient held such funds in interest-bearing accounts, any interest earned on the funds shall also be due to the State Water Board. (10)Recipient shall request its final disbursement no later than the Final Disbursement Request Date specified herein unless prior approval is granted by the Division. If the Recipient fails to do so, then the undisbursed balance of this Agreement will be deobligated. (11)The Recipient agrees that it will not request a disbursement unless that cost is allowable, reasonable, and allocable.
(12)Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner that is in violation of or in conflict with federal or state laws, policies, or regulations.
(13)The Recipient agrees that it shall not be entitled to interest earned on undisbursed Project Funds.
(14)Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel and per diem amounts that are current as of the date costs are incurred by the Recipient. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the Grant Manager. (15)The Recipient must include any other documents or requests required or allowed under this Agreement.
B.7 Withholding of Disbursements and Material Violations. (a) Notwithstanding any other provision of this Agreement, the Recipient agrees that the State Water Board may retain an amount equal to ten percent (10%) of the Project Funds until Project Completion. Any retained amounts due to the Recipient will be promptly disbursed to the Recipient, without interest, upon Project Completion.
(b) The State Water Board may withhold all or any portion of the funds provided for by this Agreement in the event that:
(1) The Recipient has materially violated, or threatens to materially violate, any term, provision, condition, or commitment of this Agreement; or
(2) The Recipient fails to maintain reasonable progress toward Project Completion.
B.8 Remaining Balance.
In the event the Recipient does not request all of the funds encumbered under this Agreement, any remaining funds revert to the State.
APPROVED
Packet Pg. 500 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT B – FUNDING PROVISIONS
B.9 Fraud and Misuse of Public Funds.
All requests for disbursement submitted shall be accurate and signed under penalty of perjury. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Recipient shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Recipient is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of Project Funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder. Additionally, the Deputy Director of the Division may request an audit and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen. Code, §§ 470, 489-490.)
APPROVED
Packet Pg. 501 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
C.1 Accounting and Auditing Standards.
The Recipient must maintain Project accounts according to GAAP. The Recipient shall maintain GAAPcompliant Project accounts, including GAAP requirements relating to the reporting of infrastructure assets.
C.2 Amendment.
No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral or written understanding or agreement not incorporated in this Agreement is binding on any of the parties.
C.3 Assignability.
This Agreement is not assignable by the Recipient, either in whole or in part.
C.4 Audit.
(a) The Division, at its option, may call for an audit of financial information relative to the Planning, where the Division determines that an audit is desirable to assure program integrity or where such an audit becomes necessary because of state or federal requirements. Where such an audit is called for, the audit shall be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient. The audit shall be in the form required by the Division. (b) Audit disallowances will be returned to the State Water Board. Failure to comply with audit disallowance provisions shall disqualify the Recipient from participating in State Water Board funding programs.
C.5 [Reserved]
C.6 Claims.
Any claim of the Recipient is limited to the rights, remedies, and claims procedures provided to the Recipient under this Agreement.
C.7 Competitive Bidding
Recipient shall adhere to any applicable state or local ordinance for competitive bidding and applicable labor laws.
If Recipient is a private entity, any construction contracts related in any way to the Planning shall be let by competitive bid procedures that ensure award of such contracts to the lowest responsible bidders.
Recipient shall not award a construction contract until a summary of bids and identification of the selected lowest responsible bidder is submitted to and approved in writing by the Division. Recipient must provide a full explanation if Recipient is proposing to award a construction contract to anyone other than the lowest responsible bidder.
C.8 Compliance with Law, Regulations, etc.
The Recipient agrees that it will, at all times, comply with and require its contractor and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements.
Without limitation of the foregoing, the Recipient agrees that, to the extent applicable, the Recipient will:
APPROVED
Packet Pg. 502 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
(a) Comply with the State Water Board's Policy;
(b) Comply with and require compliance with the list of state laws (cross-cutters) in Section C-31 of this Agreement.
C.9 Conflict of Interest.
The Recipient certifies that its owners, officers, directors, agents, representatives, and employees are in compliance, and shall remain compliant through Project Completion, with applicable state and federal conflict of interest laws, including but not limited to laws related to conflict of interest laws related to contracting and procurement.
C.10 Damages for Breach Affecting Tax-Exempt Status or Federal Compliance.
In the event that any breach of any of the provisions of this Agreement by the Recipient shall result in the loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, including bonds issued on behalf of the State Water Board, or if such breach shall result in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government by reason of any arbitrage profits, the Recipient shall 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. In the event that any breach of any of the provisions of this Agreement by the Recipient shall result in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach shall result in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient shall 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.
C.11 Disputes.
(a) The Recipient may 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.
(b) This clause 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.
(c) Recipient shall continue with the responsibilities under this Agreement during any dispute.
C.12 Financial Management System and Standards.
The Recipient agrees to 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 or state government and tracking of Project Funds to a level
APPROVED
Packet Pg. 503 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
of expenditure adequate to establish that such funds have not been used in violation of federal or state law or the terms of this Agreement.
C.13 Governing Law.
This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
C.14 Income Restrictions.
The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient under this Agreement shall be paid by the Recipient to the State, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State under this Agreement.
C.15 Indemnification and State Reviews.
The parties agree that review or approval of Project documents by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the Recipient of its responsibility to engage in proper planning. To the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board, and its officers, employees, and agents (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of this Agreement and the discharge of the Recipient's Obligation hereunder.
C.16 Independent Actor.
The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.
APPROVED
Packet Pg. 504 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
C.17 Integration.
This Agreement is the complete and final Agreement between the parties.
C.18 Non-Discrimination Clause.
(a) During the performance of this Agreement, Recipient and its contractors and subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status. (b) The Recipient, its contractors, and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.
(c) The Recipient, its contractors, and subcontractors shall comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov.
Code, §12990, subds. (a)-(f) et seq.; Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. (d) The Recipient, its contractors, and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
(e) The Recipient shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement.
C.19 No Third Party Rights.
The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or of any duty, covenant, obligation, or undertaking established herein.
C.20 [Reserved]
C.21 Other Assistance.
If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient shall immediately notify the Grant Manager.
C.22 Permits, Contracting, Disqualification.
The Recipient shall comply in all material respects with all applicable federal, state and local laws, rules and regulations. Recipient shall procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work.
For any work related to this Agreement, the Recipient shall not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed,
APPROVED
Packet Pg. 505 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
funded, or administered by the State Water Board program for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified Businesses and Persons is located at http://www.waterboards.ca.gov/water_issues/programs/ustcf/dbp.shtml.
C.23 Public Records.
The Recipient acknowledges that, except for a subset of information regarding archaeological records, the Project records and locations are public records, including but not limited to all of the submissions accompanying the application, all of the documents incorporated by reference into this Agreement, and all reports, disbursement requests, and supporting documentation submitted hereunder.
C.24 Prevailing Wages.
The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. The Recipient shall monitor all agreements subject to reimbursement from this Agreement to ensure that the prevailing wage provisions of the State Labor Code are being met.
C.25 Professionals.
The Recipient agrees that only professionals with valid licenses in the State of California will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, or design, or other word requiring interpretation and proper application of engineering or geologic sciences shall be prepared by or under the direction of persons registered to practice in California. All technical reports must contain the statement of the qualifications of the responsible registered professional(s). Technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.
Any contractors, outside associates, or consultants required by the Recipient in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, if any, or as are specifically accepted in writing by the Grant Manager during the performance of this Agreement.
C.26 Public Funding.
This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances.
C.27 Recipient’s Responsibility for Work.
The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for any and all disputes arising out of its contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.
APPROVED
Packet Pg. 506 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
C.28 Records.
Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the Recipient agrees to:
(a) Establish an official file for the Project which shall adequately document all significant actions relative to the Project;
(b) Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all assistance funds received under this Agreement; (c) Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to assistance funds disbursed under this Agreement;
(d) Establish an accounting system which will accurately depict final total costs of the Project, including both direct and indirect costs;
(e) Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and
(f) If Force Account is used by the Recipient for the Project, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee.
(g) Maintain separate books, records and other material relative to the Project. (h) Retain such books, records, and other material for itself and for each contractor or subcontractor who performed work on this Project for a minimum of thirty-six (36) years after Work Completion.
The Recipient shall require that such books, records, and other material be subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the Bureau of State Audits, the Internal Revenue Service, the Governor, or any authorized representatives of the aforementioned, and shall allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar right regarding audit, interviews, and records retention in any subcontract related to the performance of this Agreement. The provisions of this section shall survive the term of this Agreement.
C.29 Related Litigation.
A Recipient is prohibited from using funds from any disbursement under this Agreement to pay costs associated with any litigation the Recipient pursues. Regardless of whether the Project or any eventual construction project is the subject of litigation, the Recipient agrees to complete the Project funded by the Agreement or to repay all Project Funds plus interest to the State Water Board.
C.30 Rights in Data.
The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce,
APPROVED
Packet Pg. 507 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request.
C.31 State Cross-Cutter Compliance.
Recipient represents and certifies that, to the extent applicable, it is in compliance with the following conditions precedent and agrees that it will continue to maintain compliance during the term of this Agreement:
(a) State Water Board’s Drought Emergency Water Conservation regulations. Title 23, article 22.5 of the California Code of Regulations. The Recipient will include a discussion of its implementation in Progress Reports submitted pursuant to this Agreement. (b) California Environmental Quality Act (CEQA). Implementation and construction activities must comply with CEQA and potentially other environmental review requirements, including the National Environmental Policy Act (NEPA). Proceeding with work subject to CEQA and/or NEPA without environmental clearance by the State Water Board shall constitute a breach of a material provision of this Agreement. If Technical Assistance work implemented per this Agreement will include ground disturbing activities (such as test wells, boreholes) implemented for the purposes of information collection, and proposed in an area(s) with potential for environmental impacts (including riparian habitat, wetland, endangered species habitat or sensitive cultural resources areas), the Recipient shall notify the Grant Manager of the nature and scope of such work and receive approval to proceed prior to commencing ground disturbing activities. (c) Water Code section 5103, subdivision (e)(2)(A). If Recipient is a water diverter, Recipient must maintain compliance by submitting monthly diversion reports to the Division of Water Rights of the State Water Resources Control Board.
(d) Labor Code sections 1725.5 and 1771.1. To bid for public works contracts, Recipient acknowledges that Recipient and Recipient’s subcontractors must register with the Department of Industrial Relations.
(e) Water Code sections 526 and 527. If Recipient is an urban water supplier as defined by Water Code, it shall have complied and maintain compliance with sections 526 and 527 of the Water Code relating to installation of meters and volumetric charging. (f) Urban Water Management Planning Act (Water Code, § 10610 et seq.). If Recipient is an “urban water supplier” as defined by Water Code section 10617, the Recipient certifies that it has submitted an Urban Water Management Plan that has been deemed complete by the Department of Water Resources and is in compliance with that plan. This shall constitute a condition precedent to this Agreement.
(g) Urban Water Demand Management Water Code section 10631.5, subdivision (a)(1). If Recipient is an “urban water supplier” as defined by Water Code section 10617, Recipient certifies that it is implementing water demand management measures approved by the Department of Water Resources.
APPROVED
Packet Pg. 508 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
(h) Delta Plan Consistency Findings. Water Code section 85225 and California Code of Regulations, title 23, section 5002. If Recipient is a state or local public agency and the proposed action is covered by the Delta Plan, Recipient will submit a certification of project consistency with the Delta Plan to the Delta Stewardship Council prior to undertaking the implementation/construction project associated with this Project.
(i) Agricultural Water Management Plan Consistency. A Recipient that is an agricultural water supplier as defined by section 10608.12 of the Water Code must comply with the Agricultural Water Management Planning Act. (Wat. Code, § 10800 et seq.) (j) Charter City Project Labor Requirements. Labor Code section 1782 and Public Contract Code section 2503:
(1) Prevailing Wage
Where Recipient is a charter city or a joint powers authority that includes a charter city, Recipient certifies that no charter provision nor ordinance authorizes a construction project contractor not to comply with Labor Code’s prevailing wage rate requirements, nor, within the prior two years (starting from January 1, 2015 or after) has the city awarded a public works contract without requiring the contractor to comply with such wage rate requirements according to Labor Code section 1782. (2) Labor Agreements
Where Recipient is a charter city or a joint powers authority that includes a charter city, Recipient certifies that no charter provision, initiative, or ordinance limits or constrains the city’s authority or discretion to adopt, require, or utilize project labor agreements that include all the taxpayer protection antidiscrimination provisions of Public Contract Code section 2500 in construction projects, and that Recipient is accordingly eligible for state funding or financial assistance pursuant to Public Contract Code section 2503.
C.32 State Water Board Action; Costs and Attorney Fees.
The Recipient agrees that any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the State Water Board as a result of breach of this Agreement by the Recipient, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.
C.33 Termination; Immediate Acceleration; Interest.
(a) This Agreement may be terminated at any time prior to the End Date set forth on the cover and in Exhibit B, at the option of the State Water Board, upon violation by the Recipient of any material provision of this Agreement after such violation has been called to the attention of the Recipient and after failure of the Recipient to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the Division.
APPROVED
Packet Pg. 509 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT C – STANDARD TERMS AND CONDITIONS
(b) In the event of such termination, the Recipient agrees, upon demand, to immediately repay to the State Water Board an amount equal to Project Funds disbursed hereunder, accrued interest, penalty assessments, and Additional Payments. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the Recipient to the date all monies due have been received by the State Water Board.
C.34 Timeliness.
Time is of the essence in this Agreement.
C.35 Unenforceable Provision.
In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.
C.36 Venue.
The State Water Board and the Recipient hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.
C.37 Waiver and Rights of the State Water Board.
Any waiver of rights by the State Water Board with respect to a default or other matter arising under the Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter.
Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any other rights and remedies provided by law.
APPROVED
Packet Pg. 510 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR) University Enterprises, Inc.
CalStars Agreement No. D1612806
Fi$Cal Agreement No. SWRCB0000000000D161280600
Amendment No. 1
EXHIBIT D — SPECIAL CONDITIONS
Recipient acknowledges and agrees to the following special conditions:
None
APPROVED
Packet Pg. 511 Attachment: Previous Staff Report (4.11(b)--Consolidation & Water Service Agreement Between CRCMWC and COR)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the sole source purchase of all Department Variable Frequency Drives and find that the name of Yaskawa Variable Frequency Drives in the specifications for Public Works projects is authorized by Public Contract Code Section 3400(c)(2) in order to match other products in use by the City of Redding Public Works Department.
Fiscal Impact
Typically, the cost of variable frequency devices (VFDs) range between $10,000 and $20,000 each. The purchase of VFDs is done on an as needed basis. Funds are budgeted in Public Work’s Water and Wastewater Utility’s capital and operation and maintenance (O&M) budgets.
Alternative Action
The City Council may choose not to make a finding to sole source all VFDs to Yaskawa. The City of Redding (City) would continue the current practice of using a variety of brands, requiring additional inventory and training for each brand.
Background/Analysis
A VFD is a motor drive system that controls the speed and torque of a mechanical device (pumps) by varying the frequency of the input electricity. VFDs are used extensively throughout the City at its water and wastewater treatment plants, pump stations, wells, and lift stations. The Water Utility alone currently has 33 Yaskawa VFDs installed at the various sites. In the past, the City has replaced older electrical drive units/VFDs with newer style Yaskawa drives. Public Works Utilities is requesting to standardize this brand because of its durability in industrial environments, longevity of current Yaskawa VFDs, compatibility with existing equipment, and readily available local support. Currently, the utilities have various older Motortronics, GE, and MEETING DATE: November 7, 2023
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Make a Finding to Sole Source Variable Frequency Drives to Yaskawa Chuck Aukland, Public
Works Director
Packet Pg. 512
Report to Redding City Council November 1, 2023
Re: 4.11(c)--Authorize the Sole Source of Variable Frequency Drives to Yaskawa for Public Works Page 2
Fuji drives that have had compatibility issues with existing equipment such as communication problems with Programable Logic Controllers.
In accordance with Public Contract Code Section 3400(c)(2)., the Council may make a finding for a material, product, or service by specific brand or trade name in order to match other products in use within the City’s water and wastewater system. In addition, Section 4.20.080 A.6 of the Redding Municipal Code provides a provision to dispense with bidding when the equipment to be purchased represents best value to the City taking into consideration values other than solely price. Such findings would allow the benefits described above to be realized.
Environmental Review
This activity is not a project as defined by the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 513
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the sole source procurement of two Stratus Fault Tolerant server systems in an amount not to exceed $250,000 for the City of Redding Water Utility.
Fiscal Impact
There is adequate funding appropriated in the Fiscal Year 2023-24 Water Utility budget for the $250,000 purchase of the proposed equipment.
Alternative Action
The City Council (Council) may choose not to authorize the purchase of server systems directly from Stratus and instead request quotes and award the various items through the standard competitive procurement process. This alternative may result in multiple manufacturers that are not compatible with the necessary equipment for the City of Redding’s (City) water system network design. The Council may also provide alternative direction to staff.
Background/Analysis
In August 2023, the City’s Water Utility contracted with TJC/JEGO Systems, communications consultants, to standardize and redesign the network/communication systems installed over the last 30 years. The existing computer servers are more than 10 years old, have become unreliable, and reached the end of their reliable useful life. The current network system allows water treatment facilities, water storage reservoirs, groundwater wells, pump stations, and more to communicate via various types of radio telemetry and wide-area network systems. The scope of work included evaluating the existing Supervisory Control and Data Acquisition (SCADA) compute and storage infrastructure and consider the long-term future of the systems dependent on this infrastructure.
MEETING DATE: November 7, 2023
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(d)--Authorize Sole-Source Purchase of Stratus Servers for the Public Works Department
Chuck Aukland, Public
Works Director
Packet Pg. 514
Report to Redding City Council October 31, 2023
Re: 4.11(d)--Authorize Sole-Source Purchase of Stratus Servers Page 2 The water network design plan provided by TJCAA/JEGO Systems specifically recommends Stratus Fault Tolerant (Stratus) servers due to their industry-leading quality, product availability, existing equipment compatibility, and support capabilities. The attached SCADA Infrastructure Compute and Storage Specification recommendation by TJC/JEGO Systems details the server recommendation and includes all the information a vendor will need to prepare a quote. The City will procure quotes from three vendors using this specification.
The suggested specification is for one server to be located at each of the City’s water treatment plants for a total of two Stratus servers. Each server system is estimated to cost roughly $100,000 to $125,000.
Environmental Review
On December 6, 2022, Council found the Water Utility Network and Communication System Project to be exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 (a & b) – Existing Facilities. No further action is required.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^SCADA Infrastructure Specifications
Previous Staff Report
Packet Pg. 515
City of Redding SCADA Infrastructure Compute & Storage Specification TJC| JEGO Systems August 24, 2023 Page [1]
-
SCADA Infrastructure
Compute & Storage Specification
For Water Supply, Treatment, & Distribution Systems
Prepared by:
Stephen Goldsworth, CISSP
TJC | JEGO Systems
Prepared for:
City of Redding
Attn: Jim Lewis, Electrical Technician Supervisor – Public Works August 24, 2023
Packet Pg. 516 Attachment: ^SCADA Infrastructure Specifications (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) City of Redding SCADA Infrastructure Compute & Storage Specification TJC| JEGO Systems August 24, 2023 Page [2]
1 City of Redding SCADA Compute & Storage Infrastructure
1.1 Compute and Storage Recommendation Basis
TJC and JEGO Systems evaluated the existing SCADA infrastructure and considered the long-term future of the systems dependent on this infrastructure in developing this recommendation. The recommendation is for two faulttolerant (FT) server system(s) to host new and existing computers as virtual machines (VMs) that comprise the water supply, treatment, and distribution SCADA Systems. This specification is for a quantity of (2) two fault-tolerant (FT) servers to form (2) two independent systems. One system is to be located at Foothills WTP (System 1) and one at Buckeye WTP (System 2), each consisting of (1) FT server with (2) two CRUs 1 (duplex hardware). Stratus ftServer
Model 4920 is the recommended solution for the City's SCADA infrastructure. This recommendation is based on several factors that include critical operational technology (OT) system availability of 99.999%+ realized on the installed base, ease of maintenance by OT staff, 24x7 ongoing support, and the long-term support of this equipment by the manufacturer, which will extend the lifecycle of this hardware refresh to 15+ years.
1.1.1 Availability Factor
Stratus FT servers are designed to handle hardware problems automatically, with no application restart or data loss.
Lockstep technology uses replicated fault-tolerant hardware components that simultaneously process instructions.
In Stratus chipsets, hardware logic provides the lockstep architecture's error detection, fault isolation, and synchronization logic. Errors are detected and isolated to the component level, and the system itself then notifies of any problems so that corrective action can be initiated. Stratus systems are also built to withstand unpredictable transient errors that lead to downtime or cause silent data corruption on conventional systems and clusters. In the event of a component malfunction, the redundant component acts as an active spare that continues normal operation, thus averting system downtime. While other servers may offer duplicated power supplies, fans, and disk drives, only Stratus protects core system components, including motherboards, processors, memory, I/O buses, and I/O adapters. This equipment also provides an OPC connector for health notifications directly on SCADA screens, enhancing monitoring and early detection of issues.
1.1.2 Maintenance & Support Factor
Stratus systems combine platform innovations with a support model explicitly designed for critical infrastructure.
The Stratus Customer Assistance Center provides 24/7 essential support to ensure continuous operation. In the event of component failure, a replacement component is shipped from Stratus for next-day arrival. Hot-pluggable components are easy to replace by users without tools, entering keyboard commands, or a visit from a field engineer. Once the replacement part is inserted, it is automatically integrated into the running system. Throughout this process, your system and applications will continue running normally. Stratus has provided platform support for 15+ years and has been installed in critical infrastructure environments that are 30+ years old and continued to be supported by Stratus. Although comprised of duplex hardware, Stratus hardware is licensed as a single system, further reducing software costs and simplifying updates and maintenance activities. Stratus provides onsite installation as a standard offering and training on the new infrastructure.
1.2 Planned VM Inventory/Resources for Systems 1 and 2
1.2.1 System 1: Foothills Water Treatment Plant SCADA Infrastructure VM Application/Function vCPU vMem (GB) vDisk (GB)
1 Windows Domain Controller 1 4 60
2 Ignition (medium) project: 10,000 tags / 20 concurrent clients 4 4 400 3 Historian (medium) 500 - 2,500 tags SQL Based 4 8 300 4 (Existing P2V) FWTP1 (GE SCADA, Win911 Server lives at Foothill) 2 8 300 1 CRU: Customer Replaceable Units; (2) two CRU in each FT server Packet Pg. 517 Attachment: ^SCADA Infrastructure Specifications (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) City of Redding SCADA Infrastructure Compute & Storage Specification TJC| JEGO Systems August 24, 2023 Page [3]
VM Application/Function vCPU vMem (GB) vDisk (GB)
5 (Existing P2V) Historian 1 (GE Historian Server lives at Foothill) 2 20 1500 6 (Existing P2V) ETSHOP (SCADA Development Server, GE, Ignition, Reporting, Etc; lives at Foothill) 2 16 1000 7 (Existing P2V) REDW1 (Server for 'What's Up' and WIN911 Mobile App, Interface to the Business Network; lives at Foothill) 2 16 60 8 Veeam or Replication Server Appliance 2 8 500
9 VCenter Appliance 2 8 500
10 Windows Domain Controller 1 4 60
11 Ignition (medium) project: 10,000 tags / 20 concurrent clients 4 4 400 12 (Existing P2V) FWTP2 (GE SCADA, Win911 Server lives at Foothill) 2 8 300 13 (Existing P2V) Historian 2 (Wonderware Historian Server lives at Foothill) 2 8 250
1.2.2 System 2: Buckeye Water Treatment Plant SCADA Infrastructure VM Application/Function vCPU vMem (GB) vDisk (GB)
1 Windows Domain Controller 1 4 60
2 Ignition (medium) project: 10,000 tags / 20 concurrent clients 4 4 400 3 Historian (medium) 500 - 2,500 tags SQL Based 4 8 300 4 (Existing P2V) BWTP1 (GE SCADA Server lives at Buckeye) 2 8 300 5 Veeam or Replication Server Appliance 2 8 500
6 VCenter Appliance 2 8 500
7 Windows Domain Controller 1 4 60
8 Ignition (medium) project: 10,000 tags / 20 concurrent clients 4 4 400 9 (Existing P2V) BWTP2 (GE SCADA Server lives at Buckeye) 2 8 300
1.3 Hardware & Software Specifications
Stratus Build Summary
Quantity of (2) fault-tolerant, duplex hardware servers (Stratus ftServer 4920), each with the following features:
• 2-socket, 2.4 GHz 10-core processor; Intel Hyperthreading Technology enabled. (40 vCPU) [2 processors per CRU] • 128GB Memory [128GB each CRU]
• 2 800GB SSD [1 each CRU]
• 8 1.6TB NVMe [4 each CRU]
• 8 Logical 1Gb RJ45 Network Ports [4 per CRU]
• 4 Logical 10Gb SFP+ Network Ports [2 per CRU]
• VMware Essentials
• Customer-supplied VM OS
• Stratus Field Engineering Installation - Onsite Training • Partner Relocation Service - Install at SI re-verification at Customer Site (3 Months Staging) • 3 Years prepay EPS Support
Processors
Processor(s) 2 x IntelXeon Silver 4210R processor 2.4 Ghz (40 vCPU) [2 processors per CRU] Intel Hyper-threaded Cores 10 per processor[20 per CRU] Threads 20 per processor[40 per CRU]
Memory
Minimum Usable Memory 128 GB DDR4
I/O Subsystem
Integrated PCIe adapter slots 4 PCIe 3 x8
Additional PCIe adapter slots 4 PCIe 3 x8
Storage Subsystem
Internalsystemdrives 2 800GB SSD [1 each CRU]
8 1.6TB NVMe [4 each CRU]
Minimum Raw Storage 6TB
RAID levels 1, 5, 6, 10
Embedded I/O Manageability
Baseboard management controller Standard
Virtual Technician Module (VTM) Standard
Graphics adapter 1 VGA port per system
PCI Adapters
1 Gb dual-port Ethernet 8 Logical 1Gb RJ45 Network Ports[4 per CRU] 10 Gb dual-port Ethernet (copper) 4 Logical 10Gb SFP+ Network Ports [2 per CRU] Serviceability
Hot-swappable components CPU / I/O module, disks
Operating System
VMware vSphere Essentials
Virtual Machine (VM) Operating Systems Customer-supplied VM OS2 2 MS Windows [2022] Data Center to be supplied separately along with software outside of the infrastructure scope.
Packet Pg. 518 Attachment: ^SCADA Infrastructure Specifications (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) City of Redding SCADA Infrastructure Compute & Storage Specification TJC| JEGO Systems August 24, 2023 Page [4]
Manufacturer Installation, Training, & Support
Field Engineering Onsite Installation & Training
System Integrator (SI) Engineering Partner Relocation Service - Install at SI re-verification at Customer Site Staging Support (for SI) 3 Months
Customer Extended Platform (EPS) Support
3 Years prepay EPS Support:
Uptime assurance software upgrades
Software support response (critical): < 2 hours 24/7/365, Hardware support response (critical): < 2 hours 24/7/365 Initial incident response: 24/7/365, Advanced parts exchange/parts repair: Next business day Longterm Support
Platform Support (Hardware) Minimum platform support for 15+ years Installed Product Base
Uptime Availability on Installed Base Proven Uptime 99.999%+ Operational Technology (OT) Install Base Documented OT Customer Installed Base Fault Tolerance Technology
Hardware Fault Tolerance (FT) Each Server must provide local computing, storage, and networking Fault Tolerance (FT) Workload SupportIndependence Each Server CRU shall be capable of supporting the total system workload while its partner CRU is out of service.
1.4 General Requirements
1.4.1 Embedded monitoring and diagnostics
The system must provide a web-accessible diagnostic platform capable of self-monitoring and providing detailed information on the system, including alerts and component failures. The diagnostic report should be detailed enough to identify the specific failed component or service by non-technical operations staff. As an option, the system shall be capable of automatically initiating the next-day delivery of correct repair parts without impacting operations.
1.4.2 Hot-swappable servers
Hot-swappable servers (CRUs) that comprise the computer and storage system must be capable of easy replacement live without any preliminary steps or intervention, without any special tools, and while applications continue to run.
1.4.3 Fault-tolerant (FT) technology
Fault-tolerant (FT) technology must be a hardware-based solution for computing and storage. System availability promised by the manufacturer must be at least five nines uptime (99.999%) or better for the compute and storage system.
1.4.4 Internal Disk Storage
Storage shall be built using multiple hot-swappable SSDs in a redundant array (RAID). RAID configuration options must tolerate multiple drive failures. The Server shall accommodate a minimum of eight hard drives.
1.4.5 Power
Redundant power supplies with separate power cords. Power supplies must operate from 120 VAC.
1.4.6 Startup Assistance
An option for startup service shall consist of onsite setup, configuration, and technical training including, but not limited to, the following tasks are required: Unpacking all system components, hardware module setup, base operating system installation, network configuration, internal data disk setup, and the testing of individual components. Following setup, test the system to ensure the system and software function correctly. Provide a written report documenting the testing results, the initial configuration of the system, and any reference documentation.
Packet Pg. 519 Attachment: ^SCADA Infrastructure Specifications (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) GI " Y F
CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: December 6, 2022 FROM: Chuck Aukland, Public ITEM NO. 4. 11( a) Works Director
APPROVED BY***
n ..._
s. N,.
ukl n l, H' ciblic Wc aks L' reGt ' t/? 1/ 242? ry ip} in, C"i ana 1 L,' 2/ 242? [email protected]. ca.us btippin@cityofredding. org
SUBJECT: 4. 11( a)-- Authorize Sole- Source Purchase of Network Equipment for the Public Works De artment
Recommendation
Authorize the following actions relative to sole- source procurement of equipment for the City of Redding Water Utility:
1) Approve networking equipment from Cisco and Palo A1to in an amount not to exceed 450, 000 for Fiscal Year 2022- 23 to include system routers, ethernet switches, firewalls, and other network equipment and their associated licensing software and support service; and
2) Find that the action is exempt from review under the California Environmental Quality Act Guidelines, per Section 15301 — Existing Facilities.
Fiscal Impact
There are adequate funds in the Fiscal Year 2022- 23 Water Utility budget for the $ 450, 000 purchase of eguipment. Funding this purchase will not impact other activities.
Alternative Action
The City Council ( Council) may choose not to authorize the purchase of network equipment directly from Cisco and Palo Alto and instead request quotes and award the various items through the standard competitive procurement process. This alternative may result in multiple manufacturers that are not compatible with the necessary equipment for the City' s water system network design nor meet the City of Redding' s ( City) Information Technology ( IT) Department' s standard requirements to properly function with existing equipment. The Council may also provide alternative direction to staff.
Packet Pg. 520 Attachment: Previous Staff Report (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) Report to Redding City Council November29, 2022
Re: 4.11( a)-- Authorize Sole-Source Purchase ofNetwork Ec uipment Page 2 Background/Analysis
In March 2021, the City' s Water Utility contracted with communications consultants, TJCAA/ JEGO Systems, to standardize and redesign the network/ communication systems installed over the last 30 years. The current network system allows water treatment facilities, water storage reservoirs, groundwater wells, pump stations, and more to communicate via various types of radio telemetry and wide area network systems. The scope of work included evaluating the existing communications/ networking system, identifying vulnerabilities, and recommending equipment to get to an acceptable level of cybersecurity protection. The redesign identified many obsolete products such as the cellular based Cradlepoint network that is past its useful end- of-life. Other potential cybersecurity risks were identified and new equipment is needed to resolve these issues.
In 2020, the Water Utility also performed a risk and resilience assessment ( RRA), per the United States Environmental Protection Agency' s America' s Water Infrastructure Act — Section 2013.
Cybersecurity objectives identi ed in the RRA were designed into the new communication/networking system and will be implemented with this well-organized, reliable, and efficient communication system using the latest proven equipment, methods, and technologies.
The City' s IT Department was consulted to identify the most reliable and supported network equipment needed for the system including routers, ethernet switches, firewalls, and their associated licensing software and support services. The City uses a cooperative procurement method through the National Association of State Procurement Officials which would result in the purchase of these products at the lowest cost. The Cisco and Palo Alto products are a standard product offering that is used and integrated within the City' s existing network system platform. IT staff are trained and certified to operate Cisco products. The water network design plan provided by TJCAA/ JEGO Systems specifically recommends Cisco and Palo A1to due to their industry- leading quality and product availability. Based on previous experience, the consultant does not recommend building a network with an assortment of manufacturers that are not compatible with the network design strategy nor meet the IT Department' s existing networking platform.
Environmental Review
Staff has reviewed the project and determined that the project is exempt from review under the California Environmental Quality Act Guidelines, per Section 15301 — Existing Facilities. Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing public structures, equipment, and facilities. The existing network and communication system will be replaced to meet modern security and efficiency standards. The project will not result in expansion of use, as the project does not include the construction of new facilities. The action area does not have significant values for wildlife habitat or other environmental resources and the project has no potential to have a significant effect on the environment.
Packet Pg. 521 Attachment: Previous Staff Report (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) Report to Redding City Council November29, 2022
Re: 4.11( a)-- Authorize Sole-Source Purchase ofNetwork Ec uipment Page 3 Council Priority/ City Manage Goals
Public Safety — " Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." Government of the
21st
Century — ` Be relevant and proactive to the
opportunities and challenges of today' s residents and workforce. Anticipate the future to make better decisions today."
Attachments
Notice of Exeinption
Packet Pg. 522 Attachment: Previous Staff Report (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers) lYQTIGE OF `XE PTION
Tv; Office ofPlanning and Research F1toM: City af Redding 1400 Tenth Street, Room I21 Public Works Department
Sacramento, GA 95814 777 Cypress Avenue
Redding, CA 96001
Shasta County C1erk
County of Shasta
P. O: Box 990880, 1643 Market Street
Redding, CA 96099- 0880
Proaect Title; Water Utilit Network and Communications S stem Proiect J.4:#2209- 51 Project Location— Specific: Various Water Utilitv faeilities Project Location— Cityt Reddin Project Location- County: Shasta Description of' rajecta The Citv of Redding Water Utiti will replace the existin network and communicatrons svstem with a new quipment and svstem that will provide efficient and reiiable camrnanicatlon usin; modern technolo, y The existin svstem wrll be replaced with a new network includin ethernet core switches ports routers software mountin clip, and licensin;. Work mav require the removal and ret laeement of equipment and cabling electrical madifications and renlacement or reconnection of associated equipment. All work will be conducted on Ci propertv Name af Public Agency Approving Project: City of Reddin Name of Persan or Agency Carrying Out Praject: Rvan Bailey, Assistant Public Works Director Exempt Status: ( check one)
Ministerial [ Section 21Q80( b}( 1); 15268]
D clared Emergancy[ Section 21Q80( b)( 3); 15269( a)]
Q Emergency Pro ect[ Section 21080( b)( 4); 15269( b) j tatutory Exemptions. State cade number:
Common Sense Exemption( This project does not fall within an exempt class, but it can be seen with certainty that there is na possibility that the activity may have a significant effect on the enuironment( 14 CCR 15061[ b][ 3]). 0 Categorical Exemption. State type- and section number; Section 15301( a& b. Existin Facilities Na exceptions apply that would bar the use af a categorical xemption{ Pl D 21 U84 and 14 CCR 1 S3Q0.2).
Reasans why project is exempta Class 1 exemptians include the operation, repair maintenance or minar alteration of existin public structures, equipment and facilities. The existing network and communicatian svstem will be replaeed to meet modem security and efficiency standards. The proiact will nat result in expansion of use as the project does not include the construction of new facilities. The action area does not have si nzfcant vatues for wildlife habitat or other enviranmental resources and the proiect has nta potential ta have a si nificant effect on the environment Lead Agency Contact Person; Amber Kelley Telephone: 530. 225. 4046 IfI+iied by Applicant:
l. Attach certified document of exemption finding.
2. Has a notica of exemption been filed by the public agency approving the pro ect`?a Yes o No Sxgnature: Date: 1'` c C t c i
Titles Envir nrnental Cam iiance na er
O Signed by Lead Agency Date received far filing at OPR.
Signed by Applicant
i?OA i OG rev. 6/ 3??
Packet Pg. 523 Attachment: Previous Staff Report (4.11(d)--Authorize Sole-Source Purchase of Stratus Servers)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving an amended Appendix A (Designated Positions) to the City of Redding’s Conflict of Interest Code, Redding Municipal Code Chapter 2.90 (Conflict of Interest for designated positions of the City), in compliance with the California Fair Political Practices Commission biennial review requirements.
Fiscal Impact
There is no fiscal impact to the General Fund resulting from this action to comply with California Fair Political Practices Commission regulations.
Alternative Action
The City Council (Council) could choose to amend Appendix A and/or B in a different manner; or decline to adopt the Resolution and provide direction to staff.
Background/Analysis
Redding Municipal Code Chapter 2.90 – Conflict of Interest for Designated Positions of the City lists designated positions within City of Redding (City) departments and agencies, boards, commissions, and committees that make or participate in the making of governmental decisions.
Government Code Section 87302 requires that employees in positions involved in making (and/or those who participate in making) decisions that may have a material effect on personal financial interest shall file applicable Statement(s) of Economic Interests. The Political Reform Act requires every local agency to review its conflict of interest code biennially to determine whether the code is accurate or if an amendment is necessary.
On June 18, 2022, the Council directed staff to review the City’s Conflict of Interest Code and file a Biennial Report regarding the review, including any necessary revisions. Based on this MEETING DATE: November 7, 2023
ITEM NO. 4.12(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.12(a)--Resolution amending the City of Redding's Conflict of Interest Code.
Sharlene Tipton, City Clerk
Packet Pg. 524
Report to Redding City Council October 30, 2023
Re: 4.12(a)--Resolution amending City's Conflict of Interest Code Page 2 review, it is recommended that the Conflict of Interest Code Appendix A, the list of designated positions, be amended. The last biennial review was in 2018. All City Directors have reviewed and approved the designations for their respective departments.
The City Clerk and City Attorney have completed a biennial review, and recommend that the attached resolution be adopted amending Appendix A to the Conflict of Interest Code to accurately reflect designated positions within the City’s jurisdiction. There are no changes to Appendix B at this time.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• This is a routine operational item.
Attachments
^Resolution
^Appendix A - Designated Positions
^Appendix A - strikeout version Designated Positions
^Appendix B - 2023 Final Version
^Exhibit A - Summary of Amendments
Packet Pg. 525
RESOLUTION NO. 2023-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND ADOPTING AN AMENDED “APPENDIX A” TO THE
CONFLICT OF INTEREST CODE FOR DESIGNATED POSITIONS OF
THE CITY AND THE AGENCIES AND ENTITIES FOR WHICH THE
CITY SERVES AS CODE REVIEWING BODY, PURSUANT TO THE
POLITICAL REFORM ACT OF 1974
WHEREAS, the Legislature of the State of California enacted the Political Reform Act of 1974, Government Code Section 8100, et seq. (the “Act”), which contains provisions relating to conflicts of interest which potentially affect all officers, employees and consultants of the City of Redding (the “City”), and which requires all public agencies to adopt and promulgate a conflict of interest code; and
WHEREAS, the City Council adopted a Conflict of Interest Code (the “Code”), which was last amended on September 18, 2018, in compliance with the Act; and WHEREAS, subsequent changed circumstances within the City have made it advisable and necessary to amend and update the Appendix to the City’s Code pursuant to Sections 87306 and 87307 of the Act; and
WHEREAS, the potential penalties for violation of the provisions of the Act are substantial and may include criminal and civil liability, as well as equitable relief which could result in the City being restrained or prevented from acting in cases where the provisions of the Act may have been violated; and
WHEREAS, Ordinance No. 2426, adopted on December 16, 2008, ordained that Redding Municipal Code Title 2, Chapter 2.90 - Conflict of Interest for Designated Positions of the City, Section 2.90.020, Appendix A and Appendix B, be periodically updated by resolution of the City Council and shall constitute the Conflict Interest Code of the City and for each agency for which the City serves as the Code Reviewing Body; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council that “Appendix A” of the City’s Conflict of Interest Code be amended, as attached and made a part hereof by reference, to accurately reflect designated positions and disclosure categories within the City’s jurisdiction.
Packet Pg. 526 Attachment: ^Resolution (4.12(a)--Resolution amending City's Conflict of Interest Code) I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 7th day of November, 2023, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
________________________________
MICHAEL DACQUISTO, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ________________________________ SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney Packet Pg. 527 Attachment: ^Resolution (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Disclosure Category
City Attorney
134 Assistant City Attorney II 1
135 Assistant City Attorney I 1
151 Deputy City Attorney 1
090 Risk Manager 1
City Clerk
096 City Clerk 1
098 Administrator of the Office of the City Clerk 1
109 Reprographics Manager 2,3,4
187 Assistant City Clerk 1
231/232 Management Analyst I/II 1
City Manager
012 Assistant City Manager 1
018 Deputy City Manager 1
075 Airports Manager 1
138 Planning Manager/Community Development Manager 1
175 Management Assistant to City Manager 1
202 Transit Manager 2,3,4,6,7
209 Assistant Airports Manager 2,3,4
231/232 Management Analyst I/II 2,3,4,6,7
City Treasurer/Finance
60 Finance Officer 1
64 Director of Finance 1
099 Administrator of the Office of the City Treasurer 1 166 Purchasing Officer 1
188 Deputy City Treasurer 1
231/232 Management Analyst I/II 1
238 Buyer 2,3,4
239 Senior Buyer 2,3,4
Community Services
050 Assistant Director of Community Services 1
051 Communications Manager 5
052 Director of Community Services 1
092 Parks & Facilities Manager 1
146 Senior Project Coordinator - Community Services 5
160 Facility Supervisor 5
165 Parks Superintendent 5
169 Recreation Superintendent 5
Development Services
043 Director of Development Services 1
071 Asst Director of Development Services/Building Official 1 119 Senior Planner 1
138 Planning Manager/Community Development Manager 1
211 Code Enforcement Supervisor 1
222 Development Services Supervisor 1
Job Code / Position / Title
Packet Pg. 528 Attachment: ^Appendix A - Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Electric Utility
030 Director of Electric Utility 1
031 Assistant Director-Electric Utility 1
041 Electric Program Supervisor - Meter Shop 2,3,4,6
054 Cyber Security Officer 1
058 Electric Program Supervisor - Operational Technology 2,3,4,6 059 Electric Program Supervisor - Power Production 2,3,4,6 061 Electric Manager - Energy Management 1
062 Electric Program Supervisor - Transmission & Distribution 2,3,4,6 063 Electric Manager - Customer Services and Metering 1 066 Compliance Officer 1
067 Electric Manager - Technology 1
068 Operations/Compliance Engineer 2,3,4,6
069 Electric Manager-Financial 1
076 Electric Manager-Power Production 1
077 Electric Manager-Line 1
078 Electric Program Supervisor-Line 2,3,4,6
080 Electric Program Supervisor-Substations 2,3,4,6
081 Electric Manager 1
082 Electric Program Supervisor 2,3,4,6
083 Electric Manager - Engineering 1
084 Electric Manager - Operations 1
086 Electric Manager-Resources 1
087 Electrical Engineering Supervisor 2,3,4,6
088 Electric Program Supervisor-Energy Management 2,3,4,6 089 Electric Program Supervisor-Service Planning 2,3,4,6 116 Electric Utility Resource Planner 2
120 Safety and Environmental Compliance Coordinator 2
155 Electric Utility Senior Project Engineer 2,3,4,6
181 Senior Electric Utility Distribution Planner/System Inspector
2,3,4,6
195 Electric Utility Associate Resource Planner 2
267 Electric Utility Analyst - Risk and Pricing 2
266 Electric Utility Analyst - Power Settlements 2
260 Electric Utility Senior Resource Planner 2
273 Electric Program Supervisor - Vegetation
Management
2,3,4,6
274 Electric Program Supervisor - Customer Programs 2,3,4,6 275 Electric Program Superivsor - Customer Service 2,3,4,6 276 Electric Program Supervisor - Compliance 2,3,4,6
277 Electric Program Supervisor - Settlements 2,3,4,6
278 Electric Program Supervisor - Financial Services 2,3,4,6 308 Electric Utility Senior System Operator - Power 2
311 Electric Utility System Operator-Power 2
Fire
040 Fire Chief 1
042 Deputy Fire Chief 1
126 Battalion Chief/Division Chief 1
133 Battalion Chief-Shift 2,3
164 Assistant Fire Marshal 1
Packet Pg. 529 Attachment: ^Appendix A - Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Information Technology
054 Cyber Security Officer 1
094 Director of Information Technology/Chief Information Officer 1 176 Information Technology Supervisor 1
182 Geographic Information Systems Manager 1
230 Senior Project Coordinator 1
Personnel
056 Senior Personnel Analyst 1
065 Personnel Director 1
090 Risk Manager 1
095 Personnel Manager 1
215 Personnel Analyst II/Volunteer Coordinator 1
Police
035 Chief of Police 1
114 Police Captain 2
Public Works
020 Director of Public Works 1
072 Environmental Compliance Manager 3,4,6
074 Construction Manager 3,4,6
093 Deputy Director of Public Works 1
106 Assistant Director of Public Works 1
124 Senior Civil Engineer 3,4,6
125 Street Maintenance Superintendent 1
130 Fleet Manager 2
167 Safety Specialist 3,4,6
216 City Surveyor 1
226 Assistant Project Coordinator - Technical 1
231/232 Management Analyst I/II 1
252 Municipal Utility Manager-Water/Wastewater System 2 252 Municipal Utility Manager-Solid Waste 2
City Agencies Assigned Disclosure
Category per Agency's
Adopted Code
Redding Area Bus Authority (RABA)
011 City Manager 1
012 Assistant City Manager 1
064 Director of Finance 1
099 City Treasurer 1
202 Transit Manager 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Capital Services Corporation (RCSC)
011 City Manager 1
064 Director of Finance 1
Board Members 1
* Consultants 1
General Counsel 1
Packet Pg. 530 Attachment: ^Appendix A - Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Redding Housing Authority (RHA)
011 City Manager 1
012 Assistant City Manager 1
138 Planning/Community Development Manager 1
064 Director of Finance 1
099 City Treasurer 1
103 Housing Manager 2,3,4,6,7
173 Housing Program Supervisor 2,3,4,6,7
210 Senior Housing Specialist 2,3,4,6
231/232 Management Analyst I/II 2,3,4,6
Commissioners 1
* Consultants 1
General Counsel 1
Housing Administrator (City Manager Designee) 1
Redding Joint Powers Financing Authority (RJPFA)
011 City Manager 1
064 Director of Finance 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Municipal Library Board
052 Director of Community Services 1
064 Director of Finance 1
Board of Trustees Member(s) 1
* Consultant-Library Systems & Services, LLC (LLSI) 1
Executive Director 1
General Counsel 1
City of Redding as Successor Agency to the Redding Redevelopment Agency 011 City Manager 1
012 Assistant City Manager 1
064 Director of Finance 1
099 City Treasurer 1
Agency Member(s) 1
General Counsel 1
City Boards/Commissions/Committees
Member-Administrative Hearings Board 1
Member-Board of Administrative Review 3,4,6
Member-Community Development Advisory Committee 1
Member-Community Services Advisory Commission 5
Member-Shasta Public Library Citizens Advisory Committee 8 Member-Building Code Board of Appeals 3,4,6
Consultants*
William Avery Associates 1
Library Systems & Services, LLC (LSSI) 1
George Hills Company, Inc. & Local Representative 1
*Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the Conflict of Interest Code, subject to the following limitations:
The City Manager, or designee, may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope, and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The determination of the City Manager, or designee, is a public record and shall be retained for public inspection in the same manner and locations as this Conflict of Interest Code.
Packet Pg. 531 Attachment: ^Appendix A - Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Disclosure Category
City Attorney
134 Assistant City Attorney II 1
135 Assistant City Attorney I 1
151 Deputy City Attorney 1
090 Risk Manager 1
City Clerk
096 City Clerk 1
098 Administrator of the Office of the City Clerk 1
109 Reprographics Manager 2,3,4
187 Assistant City Clerk 1
231/232 Management Analyst I/II 1
City Manager
012 Assistant City Manager 1
018 Deputy City Manager 1
075 Airports Manager 1
138 Planning/Community Development Manager 1
166 Purchasing Officer 1
175 Management Assistant to City Manager 1
202 Transit Manager 2,3,4,6,7
209 Assistant Airports Manager 2,3,4
238 Buyer 2,3,4
239 Senior Buyer 2,3,4
231/232 Management Analyst I/II 2,3,4,6,7
City Treasurer/Finance
60 Finance Officer 1
64 Director of Finance 1
099 Administrator of the Office of the City Treasurer 1 105 Assistant Finance Officer 1
152 Financial Management Specialist 1
166 Purchasing Officer 1
188 Deputy City Treasurer 1
231/232 Management Analyst I/II 1
238 Buyer 2,3,4
239 Senior Buyer 2,3,4
Community Services
050 Assistant Director of Community Services 1
051 Communications Manager 5
052 Director of Community Services 1
092 Parks & Facilities Manager 1
146 Senior Project Coordinator - Community Services 5
160 Facility Supervisor 5
165 Parks Superintendent 5
169 Recreation Superintendent 5
Development Services
043 Director of Development Services 1
071 Asst Director of Development Services/Building Official 1 119 Senior Planner 1
138 Planning Manager/Community Development Manager 1
211 Code Enforcement Supervisor 1
222 Development Services Supervisor 1
Job Code / Position / Title
Packet Pg. 532 Attachment: ^Appendix A - strikeout version Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Electric Utility
030 Director of Electric Utility 1
031 Assistant Director-Electric Utility 1
041 Electric Program Supervisor - Meter Shop 2,3,4,6
054 Cyber Security Officer 1
058 Electric Program Supervisor - Operational
Technology
2,3,4,6
059 Electric Program Supervisor - Power Production 2,3,4,6 061 Electric Manager - Energy Management 1
062 Electric Program Supervisor - Transmission &
Distribution
2,3,4,6
063 Electric Manager - Customer Services and Metering 1 066 Compliance Officer 1
067 Electric Manager - Technology 1
068 Operations/Compliance Engineer 2,3,4,6
069 Electric Manager-Financial 1
076 Electric Manager-Power Production 1
077 Electric Manager-Line 1
078 Electric Program Supervisor-Line 2,3,4,6
080 Electric Program Supervisor-Substations 2,3,4,6
081 Electric Manager 1
082 Electric Program Supervisor 2,3,4,6
083 Electric Manager - Engineering (E&O) 1
084 Electric Manager-Engineering Operations 1
086 Electric Manager-Resources 1
087 Senior Electrical Engineer Electrical Engineering
Supervisor
2,3,4,6
088 Electric Program Supervisor-Energy Management 2,3,4,6 089 Electric Program Supervisor-Service Planning 2,3,4,6 116 Electric Utility Resource Planner 2
118 Associate Civil Engineer 3,4,6
120 Safety and Environmental Compliance Coordinator 2
137 Energy Trader 2
155 Electric Utility Project Coordinator Electric Utility Senior Project Engineer
2,3,4,6
181 Senior Distribution Planner Senior Electric Utility Distribution Planner/System Inspector
2,3,4,6
192 Electric Utility Operational Technology Engineer 1,2 195 Electric Utility Associate Resource Planner 2
254 Power Pre-scheduler 2
267 Electric Utility Analyst - Risk and Pricing 2
266 Electric Utility Analyst - Power Settlements 2
260 Electric Utility Senior Resource Planner 2
273 Electric Program Supervisor - Vegetation
Management
2,3,4,6
274 Electric Program Supervisor - Customer Programs 2,3,4,6 275 Electric Program Superivsor - Customer Service 2,3,4,6 276 Electric Program Supervisor - Compliance 2,3,4,6
277 Electric Program Supervisor - Settlements 2,3,4,6
278 Electric Program Supervisor - Financial Services 2,3,4,6 308 Electric Utility Senior System Operator - Power 2
311 Electric Utility System Operator-Power 2
Packet Pg. 533 Attachment: ^Appendix A - strikeout version Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Fire
040 Fire Chief 1
042 Deputy Fire Chief 1
126 Battalion Chief/Division Chief 1
133 Battalion Chief-Shift 2,3
164 Assistant Fire Marshal 1
Information Technology
054 Cyber Security Officer 1
094 Director of Information Technology/Chief Information Officer 1 176 Information Technology Supervisor 1
182 Geographic Information Systems Manager 1
230 Senior Project Coordinator 1
Personnel
056 Senior Personnel Analyst 1
065 Director of Personnel Personnel Director 1
090 Risk Manager 1
095 Personnel Manager 1
215 Personnel Analyst II/Volunteer Coordinator 1
241 Office Services Supervisor 1
Police
035 Chief of Police 1
114 Police Captain 2
Public Works
020 Director of Public Works 1
072 Environmental Compliance Manager 3,4,6
074 Construction Manager 3,4,6
075 Airports Manager 1
093 Deputy Director of Public Works 1
106 Assistant Director of Public Works 1
124 Project Coordinator Senior Civil Engineer 3,4,6
125 Street Maintenance Superintendent 1
130 Fleet Manager 2
167 Safety Specialist 3,4,6
209 Assistant Airports Manager 2,3,4
216 City Surveyor 1
226 Assistant Project Coordinator - Technical 1
231/232 Management Analyst I/II 1
252 Municipal Utility Manager-Water/Wastewater System 2 252 Municipal Utility Manager-Solid Waste 2
Packet Pg. 534 Attachment: ^Appendix A - strikeout version Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
City Agencies
Assigned Disclosure
Category per Agency's
Adopted Code
Redding Area Bus Authority (RABA)
011 City Manager 1
012 Assistant City Manager 1
020 Director of Public Works 1
064 Director of Finance 1
099 City Treasurer 1
106 Assistant Director of Public Works 1
202 Transit Manager 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Capital Services Corporation (RCSC)
011 City Manager 1
064 Director of Finance 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Housing Authority (RHA)
011 City Manager 1
012 Assistant City Manager 1
064 Director of Finance 1
099 City Treasurer 1
103 Housing Manager 2,3,4,6,7
138 Planning/Community Development Manager 1
173 Housing Program Supervisor 2,3,4,6,7
210 Senior Housing Specialist 2,3,4,6
231/232 Management Analyst I/II 2,3,4,6
Commissioners 1
* Consultants 1
General Counsel 1
Housing Administrator (City Manager Designee) 1
Redding Joint Powers Financing Authority (RJPFA)
011 City Manager 1
064 Director of Finance 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Municipal Library Board
052 Director of Community Services 1
064 Director of Finance 1
Board of Trustees Member(s) 1
* Consultant-Library Systems & Services, LLC (LLSI) 1
Executive Director 1
General Counsel 1
Packet Pg. 535 Attachment: ^Appendix A - strikeout version Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code) Appendix A
DESIGNATED POSITIONS
City of Redding - 2023
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
City Agencies
Assigned Disclosure
Category per Agency's
Adopted Code
City of Redding as Successor Agency to the Redding Redevelopment Agency 011 City Manager 1
012 Assistant City Manager 1
064 Director of Finance 1
099 City Treasurer 1
Agency Member(s) 1
General Counsel 1
City Boards/Commissions/Committees
Member-Administrative Hearings Board 1
Member-Board of Administrative Review 3,4,6
Member-Community Development Advisory Committee 1
Member-Community Services Advisory Commission 5
Member-Shasta Public Library Citizens Advisory Committee 8 Member-Building Code Board of Appeals 3,4,6
Consultants*
William Avery Associates 1
Library Systems & Services, LLC (LSSI) 1
George Hills Company, Inc. & Local Representative 1
*Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the Conflict of Interest Code, subject to the following limitations:
The City Manager or his designee may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope, and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The determination of the City Manager or his designee is a public record and shall be retained for public inspection in the same manner and locations as this Conflict of Interest Code.
Packet Pg. 536 Attachment: ^Appendix A - strikeout version Designated Positions [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code)
APPENDIX B
LIST OF DISCLOSURE CATEGORIES SPECIFICATION SHEET
REPORTABLE INVESTMENTS, INTERESTS IN REAL PROPERTY AND INCOME
CONFLICT OF INTEREST CODE
FOR THE CITY OF REDDING AND RELATED AGENCIES
Disclosure Category
1 All investments and business positions in business entities, sources of income, and interests in real property in the City of Redding or property located within a two-mile radius of any property owned or used by the City of Redding or it’s related agencies, whether in the City or not.
2 Investments and business positions in business entities, and sources of income from entities providing supplies, services, equipment, or machinery of the type used by the designated employee's unit.
3 Investments and business positions in business entities, and income from sources engaged in construction, building, or material supply.
4 Investments and business positions in, and income from sources engaged in, the construction of public works projects.
5 All reportable interests in real property located in the City and located within or outside the City if within a two-mile radius of any open space or park property owned or used by the City. All reportable business positions, investments, or income for any person, firm or entity which supplies goods or services to the Community Services Department of the City of Redding, including businesses with leaseholds in City parks, construction firms, recreational equipment supplyfirms, financial institutions, aquatic equipment or supply firms or landscape design or maintenance businesses. 6 All real property, all investment in, all business positions in, or income from construction firms, building supply firms, engineering firms, architecture firms and financial institutions.
7 Investments and business positions in business entities, and sources of income from entities involved in any business relationship with any entity having a history of making applications before the board or commission which the designated position serves on.
8 Investments and business positions in business entities, and sources of income from entities providing supplies, services, equipment or machinery of the type used by the Redding Main Library, the Burney Branch Library or the Anderson Branch Library.
Packet Pg. 537 Attachment: ^Appendix B - 2023 Final Version (4.12(a)--Resolution amending City's Conflict of Interest Code)
ASSIGNED
TITLE JOB DISCLOSURE
CITY DEPT/COMMISSION/AGENCY CHANGE ADDITION DELETION CODE POSITION TITLE CATEGORY City Clerk
x 231/232 Management Analyst I/II 1
City Manager
x 75 Airports Manager 1
x 138 Planning/Community Development Manager 1
x 166 Purchasing Officer 1
x 175 Management Assistant to City Manager 1
x 202 Transit Manager 2,3,4,6,7
x 209 Assistant Airports Manager 2,3,4
x 238 Buyer 2,3,4
x 239 Senior Buyer 2,3,4
x 231/232 Management Analyst I/II 2,3,4,6,7
City Treasurer/Finance
x 105 Assistant Finance Officer 1
x 152 Financial Management Specialist 1
x 166 Purchasing Officer 1
x 231/232 Management Analyst I/II 1
x 238 Buyer 2,3,4
x 239 Senior Buyer 2,3,4
Community Services
x 50 Assistant Director of Community Services 1
x 51 Communications Manager 5
x 146 Senior Project Coordinator - Community Services 5 x 169 Recreation Superintendent 5
Electric Utility
x 41 Electric Program Supervisor - Meter Shop 2,3,4,6
x 54 Cyber Security Officer 1
x 58 Electric Program Supervisor - Operational Technology 2,3,4,6 x 59 Electric Program Supervisor - Power Production 2,3,4,6 x 61 Electric Manager - Energy Management 1
x 62 Electric Program Supervisor - Transmission & Distribution 2,3,4,6 x 63 Electric Manager - Customer Services and Metering 1 x 66 Compliance Officer 1
x 67 Electric Manager - Technology 1
x 68 Operations/Compliance Engineer 2,3,4,6
x 83 Electric Manager - Engineering 1
x 84 Electric Manager - Operations 1
x 87 Electrical Engineering Superivisor 2,3,4,6
x 118 Associate Civil Engineer 3,4,6
x 137 Energy Trader 2
x 155 Electric Utility Senior Project Engineer 2,3,4,6
x 181 Senior Electric Utility Distribution Planner/System Inspector 2,3,4,6 x 195 Electric Utility Associate Resource Planner 2
x 254 Power Pre-scheduler 2
x 267 Electric Utility Analyst - Risk and Pricing 2
x 266 Electric Utility Analyst - Power Settlements 2
x 260 Electric Utility Senior Resource Planner 2
x 273 Electric Program Supervisor - Vegetation Management 2,3,4,6 x 274 Electric Program Supervisor - Customer Programs 2,3,4,6 x 275 Electric Program Supervisor - Customer Service 2,3,4,6 x 276 Electric Program Supervisor - Compliance 2,3,4,6
x 277 Electric Program Supervisor - Settlements 2,3,4,6 x 278 Electric Program Supervisor - Financial Services 2,3,4,6 Information Technology
x 94 Director of Information Technology/Chief Information Officer 1 x 176 Information Technology Supervisor 1
x 182 Geographic Information Systems Manager 1
x 230 Senior Project Coordinator 1
Personnel
x 65 Personnel Director 1
x 95 Personnel Manager 1
x 241 Office Services Supervisor 1
Public Works
x 74 Construction Manager 3,4,6
x 75 Airports Manager 1
x 124 Senior Civil Engineer 3,4,6
x 167 Safety Specialist 3,4,6
x 209 Assistant Airports Manager 2,3,4
x 226 Assistant Project Coordinator - Technical 1
x 231/232 Management Analyst I/II 1
Redding Area Bus Authority (RABA)
x 12 Assistant City Manager 1
x 20 Director of Public Works 1
x 106 Assistant Director of Public Works 1
x 202 Transit Manager 1
Redding Housing Authority (RHA)
x 12 Assistant City Manager 1
x 138 Planning/Community Development Manager 1
x 231 Management Analyst I 2,3,4,6,7
Building Code Board of Appeals
x Board Members 3,4,6
PROPOSED CHANGES TO CONFLICT OF INTEREST CODE APPENDIX A CITY OF REDDING DESIGNATED POSITIONS - 2023
EXHIBIT A
Packet Pg. 538 Attachment: ^Exhibit A - Summary of Amendments [Revision 2] (4.12(a)--Resolution amending City's Conflict of Interest Code)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Conduct a Public Hearing and, upon conclusion, if no majority protest exists, adopt three Resolutions implementing increased Water, Wastewater, and Solid Waste Utility rates and a new commercial source-separated food waste collection rate for the Solid Waste Utility, all to be effective January 1, 2024.
Fiscal Impact
Without the implementation of the proposed rates, critical infrastructure projects needed to operate the utilities will be deferred and/or service levels will be reduced.
Alternative Action
The City Council (Council) has the following alternatives:
(1) Approve Water, Wastewater, and Solid Waste Utility rate increases less than what is proposed by staff. If this alternative is selected, staff would proceed with adjusting the capital project list along with expenditure and revenue projections for the Fiscal Year 2023-24 Adopted Budget. A resolution related to each Utility’s rates would be brought back at a subsequent Council meeting for the Council to consider; (2) If it appears the majority protest standard (50 percent plus one) may be met, set a time and place for the City of Redding (City) Clerk to tabulate the protest notices and return to the Council at its next regular meeting on November 21, 2023, with the results; (3) Decline to open the public hearing and provide direction to staff. If a new public hearing were to be set, the public hearing would need to be noticed providing a minimum 45-day notification period; or
(4) Do not approve any rate increases at this time and maintain the current rate structure. If this alternative is selected, staff would proceed with adjusting the planned expenditure and revenue projections to ensure solvency. This alternative would significantly impact planned capital project implementation and/or service levels for water and wastewater MEETING DATE: November 7, 2023
ITEM NO. 6.1
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 6.1--Public Hearing to consider adopting Resolutions (3) regarding implementing increased Water, Wastewater, and Solid Waste Utility Rates.
Chuck Aukland, Public
Works Director
Packet Pg. 539
Report to Redding City Council November 2, 2023
Re: 6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates Page 2 utilities likely resulting in an increase in pipe failures leading to water quality issues, increased costs for maintenance and repair work, decrease in routine maintenance, and regulatory fines and penalties. The Solid Waste Utility would need to consider reduced service levels and frequency of collection, elimination of programs such as Household Hazardous Waste, elimination of the community work program support, and regulatory fines and penalties. Larger rate increases would need to be considered by future Council’s to implement the deferred capital programs.
Background/Analysis
At the September 5, 2023, Council meeting, a Public Hearing for the proposed increases of Water, Wastewater, and Solid Waste Utility rates and a new Solid Waste rate for commercial source-separated food waste collection, was set for the November 7, 2023, regular meeting of the Council. Attached is a copy of the report to Council providing background information in support of the increases. The Rate Study prepared by NBS Consultants as well as additional information has been posted throughout the notification process at www.reddingutilities.com.
The amounts shown in the table below are the proposed monthly increases for a typical singlefamily residence who demands an average of 2,100 cubic feet of water and uses a 96-gallon waste receptacle for each year of the proposed program, which would become effective on or about January 1, 2024.
UTILITY 2024* 2025* 2026* 2027*
Solid Waste 15%
$4.29
8%
$2.61
8%
$2.82
6%
$2.28
Wastewater 5%
$3.21
5%
$3.37
4%
$2.83
4%
$2.94
Water 12% / 18%**
$9.33
6.5%
$4.35
6.5%
$4.68
6.5%
$5.02
TOTAL $16.83 $10.33 $10.33 $10.24
*Monthly increase for typical single-family home using 96-gallon solid waste service and 2,100 cubic feet of water per month. **Monthly increase for the fixed meter charge is 12% and the increase for the variable/commodity charge is 18% for a single-family home.
In addition, and in accordance with the mandates of Senate Bill 1383, the City must now collect source-separated food waste and divert it from landfill application. It will be disposed through composting, off-site hauling or processed through the wastewater treatment plant. As such, a new rate for commercial food waste collection is needed to recover the cost of these services. The proposed new rate by number of collections per week is shown in the table below.
Monthly Commercial Food Waste Rates by Number of Collections Per Week Container Type 1 2 3 4 5 6
45-Gal Container $29.91 $59.82 $89.72 $119.63 $149.54 $179.45 64-Gal Container $33.49 $66.98 $100.46 $133.95 $167.44 $200.93 1-Yard Container $187.74 $374.22 $560.71 $747.19 $933.67 $1,120.15 2-Yard Container $314.10 $625.95 $937.81 $1,249.67 $1,561.52 $1,873.38 Packet Pg. 540
Report to Redding City Council November 2, 2023
Re: 6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates Page 3 The proposed rates were developed through a deliberate and detailed process to analyze future system needs, customer demands and regulatory challenges. The process included preparation of a Rate Study by NBS Consultants and six separate meetings with over 10 hours of input from a six-member Citizens Advisory Group. The proposed rates will position each utility to effectively and efficiently meet system needs with increased revenue needed to:
• Keep pace with inflation and avoid future rate shock; • Meet critical aging infrastructure repair and replacement capital needs; • Position the utilities to meet expanding environmental and regulatory mandates; and • Meet debt service obligations from past upgrades to treatment facilities.
A more detailed presentation of the needs of each utility, cost of service and proposed rate structure was provided to the Council at its regular meeting on September 5, 2023. The staff report and slide presentation are attached for additional context and information.
As the Council is aware, prior to the consideration of property-based utility rate adjustments, Article 13D of the California Constitution requires those affected property owners receiving any one of the utility services to be notified at least 45 days in advance of the Public Hearing and be provided an opportunity to protest the adjustments. In addition to this requirement, the City also affords any utility customer the same opportunity to submit a protest. Accordingly, following the September 5, 2023, Council meeting, 51,686 notices of public hearing/protest forms were mailed to affected property owners and utility customers.
Following the close of the public hearing, should it be readily apparent that the City did not receive protests from the majority (50 percent plus one) of the affected parcels, the Council may adopt new rate schedules as proposed in the attached resolutions. Alternatively, if it is not readily apparent that no majority protest exists, the Council may direct staff to commence the process of tabulating the ballots and setting the time and place for such tabulation. This process will be open to the public and staff will return with the results at the next scheduled meeting of the Council.
The number utilized in determining whether protests were lodged by 50 percent plus one of the affected parcels, in accordance with Article 13D of the California Constitution, is not based on the number of mailed notices, but the actual number of affected parcels. The following is the breakdown of affected parcels by utility: Water – 27,113; Wastewater – 27,305; and Solid Waste – 29,421. Should the City receive a protest notice from a property owner and/or a utility customer on a particular affected parcel for one or more of the utility rate increases then that affected parcel will be counted as a protest for the increase proposed. Should the number of protests for a given utility rate increase exceed 50 percent plus one of the affected parcels, then the Council cannot increase the proposed rate for that utility.
The rate setting process was very transparent and afforded many opportunities for public awareness and involvement. In addition to the Citizens Advisory Group input, the proposed rates were vetted through an advertised and open public meeting, several interviews with local media, Council reports and presentations, social media and website publication of informational materials, and the aforementioned Protest Notice mailings located at www.reddingutilties.com.
Environmental Review
Fiscal activity is not a project as defined by the California Environmental Quality Act, and no further action is required.
Packet Pg. 541
Report to Redding City Council November 2, 2023
Re: 6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates Page 4 Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all Funds.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Reso Water Utility Rates 2023
^Water - EXHIBIT A
^Reso WW Utility Rates 2023
^Wastewater - EXHIBIT A
^Reso Solid Waste Utility Rates 2023
^Solid Waste - EXHIBIT A
Previous Staff Report
2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Cost of Service Rate Study Sept '23
Packet Pg. 542
RESOLUTION NO. 2023-___
A RESOLUTION OF THE CITY OF REDDING ADOPTING A WATER
UTILITY RATE SCHEDULE
WHEREAS, the City Council desires to adopt a Water Utility Rate Schedule to incorporate adjustments to the property based and related service rates; and WHEREAS, the City has identified the parcels upon which the Water Utility rates are proposed for imposition as required by Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the City has calculated, by means of a study entitled City of Redding Water, Wastewater and Solid Waste Utility Rate Study Final Report, by NBS Consultants and dated September 2023, incorporated herein by this reference, the amount of fee charge proposed to be imposed upon each parcel as required by Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the City has provided written notice by mail 45 days prior to conducting a public hearing to consider the proposed fee or charge to each customer and the recorded owner of each identified parcel upon which the fee or charge is proposed for imposition, as required by Government Code Section 53755(a)(1) and Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the notice to customers and owners of record contained all of the following: (1) the amount of the fee or charge proposed to be imposed upon each parcel; (2) the basis on which the amount of the proposed fee or charge was calculated; (3) the reason for the fee or charge, and (4) the date, time, and location of a public hearing on the proposed fee or charge as required by Cal.
Const. Art. XIIID, Section 6(a)(1); and
WHEREAS, pursuant to Cal. Const. Art. XIIID, Section 6(a)(2), at a duly noticed public hearing held on November 7, 2023, the City Council considered all written protests against the rates and has determined that the rates proposed in the Water Utility Rate Schedule, attached and incorporated herein as Exhibit A, have not been protested by a majority of owners of the identified parcels;
NOW THEREFORE, BE IT RESOLVED that, pursuant to Cal Const. Art. XIIID, Section 6(b), the City Council of the City of Redding hereby finds as follows:
1. The revenues to be derived from the rates set forth in the Water Utility Rate Schedule (Exhibit A) do not exceed the funds required to provide utility service.
2. The revenues to be derived from the rates set forth in the Water Utility Rate Schedule (Exhibit A) shall not be used for any purpose other than that for which the fee was imposed.
3. The amount of the rates set forth in the Water Utility Rate Schedule (Exhibit A) do not exceed the proportional cost of the service attributable to the parcel.
4. The rates set forth in the Water Utility Rate Schedule (Exhibit A) are used by, or immediately available to, the record owner of the property.
BE IT FURTHER RESOLVED that the service rates set forth in the Water Utility Rate Schedule (Exhibit A) are hereby adopted and shall take effect beginning January 1, 2024.
Packet Pg. 543 Attachment: ^Reso Water Utility Rates 2023 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 7 th day of November, 2023, by the
following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVED:
SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney Packet Pg. 544 Attachment: ^Reso Water Utility Rates 2023 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
EXHIBIT A
CITY OF REDDING
WATER DIVISION
2024 2025 2026 2027
Fixed Service Charge - Based on Meter Size
Monthly Fixed Service Charge - Standard Meters:
*SFR 5/8 and 3/4 inch $27.91 $29.72 $31.66 $33.71
3/4 inch $39.41 $41.97 $44.70 $47.60
1 inch $62.38 $66.44 $70.76 $75.36
1.5 inch $119.82 $127.61 $135.91 $144.74
2 inch $188.75 $201.02 $214.08 $228.00
3 inch $372.55 $396.77 $422.56 $450.03
4 inch $579.33 $616.99 $657.10 $699.81
6 inch $1,153.72 $1,228.72 $1,308.58 $1,393.64
8 inch $1,842.99 $1,962.79 $2,090.37 $2,226.24
10 inch $4,829.82 $5,143.76 $5,478.10 $5,834.18
Commodity Charges for All Water Consumed per CCF
Uniform Rate $1.88 $2.00 $2.13 $2.27
* Single Family Residents (SFR)
CCF = Hundred Cubic Feet (748 gallons)
Packet Pg. 545 Attachment: ^Water - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) RESOLUTION NO. 2023-___
A RESOLUTION OF THE CITY OF REDDING ADOPTING A
WASTEWATER UTILITY RATE SCHEDULE
WHEREAS, the City Council desires to adopt a Wastewater Utility Rate Schedule to incorporate adjustments to the property based and related service rates; and WHEREAS, the City has identified the parcels upon which the Wastewater Utility rates are proposed for imposition as required by Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the City has calculated, by means of a study entitled City of Redding Water, Wastewater and Solid Waste Utility Rate Study Final Report, by NBS Consultants and dated September 2023, incorporated herein by this reference, the amount of fee charge proposed to be imposed upon each parcel as required by Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the City has provided written notice by mail 45 days prior to conducting a public hearing to consider the proposed fee or charge to each customer and the recorded owner of each identified parcel upon which the fee or charge is proposed for imposition, as required by Government Code Section 53755(a)(1) and Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the notice to customers and owners of record contained all of the following: (1) the amount of the fee or charge proposed to be imposed upon each parcel; (2) the basis on which the amount of the proposed fee or charge was calculated; (3) the reason for the fee or charge, and (4) the date, time, and location of a public hearing on the proposed fee or charge as required by Cal.
Const. Art. XIIID, Section 6(a)(1); and
WHEREAS, pursuant to Cal. Const. Art. XIIID, Section 6(a)(2), at a duly noticed public hearing held on November 7, 2023, the City Council considered all written protests against the rates and has determined that the rates proposed in the Wastewater Utility Rate Schedule, attached and incorporated herein as Exhibit A, have not been protested by a majority of owners of the identified parcels;
NOW THEREFORE, BE IT RESOLVED that, pursuant to Cal Const. Art. XIIID, Section 6(b), the City Council of the City of Redding hereby finds as follows:
1. The revenues to be derived from the rates set forth in the Wastewater Utility Rate Schedule (Exhibit A) do not exceed the funds required to provide utility service.
2. The revenues to be derived from the rates set forth in the Wastewater Utility Rate Schedule (Exhibit A) shall not be used for any purpose other than that for which the fee was imposed.
3. The amount of the rates set forth in the Wastewater Utility Rate Schedule (Exhibit A) do not exceed the proportional cost of the service attributable to the parcel.
4. The rates set forth in the Wastewater Utility Rate Schedule (Exhibit A) are used by, or immediately available to, the record owner of the property.
BE IT FURTHER RESOLVED that the service rates set forth in the Wastewater Utility Rate Schedule (Exhibit A) are hereby adopted and shall take effect beginning January 1, 2024.
Packet Pg. 546 Attachment: ^Reso WW Utility Rates 2023 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 7 th day of November, 2023, by the
following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVED:
SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney Packet Pg. 547 Attachment: ^Reso WW Utility Rates 2023 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
EXHIBIT A
CITY OF REDDING
WASTEWATER DIVISION
2024 2025 2026 2027
Monthly Service Charges:
Single Family Dwelling ($/residence) $67.38 $70.75 $73.58 $76.52 Multi Family Dwelling ($/unit) $49.86 $52.35 $54.44 $56.62 Standard Commercial billed monthly ($/CCF) $6.92 $7.27 $7.56 $7.86 Standard Commercial calculated annually ($/# HE)1 $67.38 $70.75 $73.58 $76.52 Commercial Food Preparation billed monthly ($/CCF) $13.84 $14.54 $15.12 $15.72 Commercial Food Preparation calculated annually ($/# HE) $134.76 $141.50 $147.16 $153.04 HE = Household Equivalent
CCF = Hundred Cubic Feet (748 gallons)
1. Includes Industrial, other and unknown customers
Packet Pg. 548 Attachment: ^Wastewater - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility RESOLUTION NO. 2023-___
A RESOLUTION OF THE CITY OF REDDING ADOPTING A SOLID
WASTE UTILITY RATE SCHEDULE
WHEREAS, the City Council desires to adopt a Solid Waste Utility Rate Schedule to incorporate adjustments to the property based and related service rates; and WHEREAS, the City has identified the parcels upon which the Solid Waste Utility rates are proposed for imposition as required by Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the City has calculated, by means of a study entitled City of Redding Water, Wastewater and Solid Waste Utility Rate Study Final Report, by NBS Consultants and dated September 2023, incorporated herein by this reference, the amount of fee charge proposed to be imposed upon each parcel as required by Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the City has provided written notice by mail 45 days prior to conducting a public hearing to consider the proposed fee or charge to each customer and the recorded owner of each identified parcel upon which the fee or charge is proposed for imposition, as required by Government Code Section 53755(a)(1) and Cal. Const. Art. XIIID, Section 6(a)(1); and WHEREAS, the notice to customers and owners of record contained all of the following: (1) the amount of the fee or charge proposed to be imposed upon each parcel; (2) the basis on which the amount of the proposed fee or charge was calculated; (3) the reason for the fee or charge, and (4) the date, time, and location of a public hearing on the proposed fee or charge as required by Cal.
Const. Art. XIIID, Section 6(a)(1); and
WHEREAS, pursuant to Cal. Const. Art. XIIID, Section 6(a)(2), at a duly noticed public hearing held on November 7, 2023, the City Council considered all written protests against the rates and has determined that the rates proposed in the Solid Waste Utility Rate Schedule, attached and incorporated herein as Exhibit A, have not been protested by a majority of owners of the identified parcels;
NOW THEREFORE, BE IT RESOLVED that, pursuant to Cal Const. Art. XIIID, Section 6(b), the City Council of the City of Redding hereby finds as follows:
1. The revenues to be derived from the rates set forth in the Solid Waste Utility Rate Schedule (Exhibit A) do not exceed the funds required to provide utility service.
2. The revenues to be derived from the rates set forth in the Solid Waste Utility Rate Schedule (Exhibit A) shall not be used for any purpose other than that for which the fee was imposed.
3. The amount of the rates set forth in the Solid Waste Utility Rate Schedule (Exhibit A) do not exceed the proportional cost of the service attributable to the parcel.
4. The rates set forth in the Solid Waste Utility Rate Schedule (Exhibit A) are used by, or immediately available to, the record owner of the property.
BE IT FURTHER RESOLVED that the service rates set forth in the Solid Waste Utility Rate Schedule (Exhibit A) are hereby adopted and shall take effect beginning January 1, 2024.
Packet Pg. 549 Attachment: ^Reso Solid Waste Utility Rates 2023 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 7 th day of November, 2023, by the
following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVED:
SHARLENE TIPTON, City Clerk BARRY E. DeWALT, City Attorney Packet Pg. 550 Attachment: ^Reso Solid Waste Utility Rates 2023 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
EXHIBIT A
CITY OF REDDING
SOLID WASTE DIVISION
Residential Rates
2024 2025 2026 2027
Residential Wheeled Cart Monthly Rate 1 45-Gal Container $25.90 $27.97 $30.21 $32.02 64-Gal Container $28.34 $30.61 $33.06 $35.04 96-Gal Container $32.59 $35.20 $38.02 $40.30 Additional Green Waste Container $4.60 $4.97 $5.37 $5.69 Landfill Monitoring $0.22 $0.22 $0.22 $0.22 Automated Cart Special Collection Rate (per cart) 45-gallon Same Day (50% of monthly fee) $12.95 $13.99 $15.10 $16.01 Not Same Day (65% of monthly fee) $16.83 $18.18 $19.64 $20.81 64-gallon Same Day (50% of monthly fee) $14.17 $15.30 $16.53 $17.52 Not Same Day (65% of monthly fee) $18.42 $19.90 $21.49 $22.78 96-gallon Same Day (50% of monthly fee) $16.30 $17.60 $19.01 $20.15 Not Same Day (65% of monthly fee) $21.19 $22.88 $24.71 $26.19 1. Residential Service includes trash, recycling, and green waste containers.
Packet Pg. 551
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility
CITY OF REDDING
SOLID WASTE DIVISION
Commercial Food Waste Rates
Monthly Rates by Number of Pickups Per Week Container Type 1 2 3 4 5 6 45-Gal Container $29.91 $59.82 $89.72 $119.63 $149.54 $179.45 64-Gal Container $33.49 $66.98 $100.46 $133.95 $167.44 $200.93 1-Yard Container $187.74 $374.22 $560.71 $747.19 $933.67 $1,120.15 2-Yard Container $314.10 $625.95 $937.81 $1,249.67 $1,561.52 $1,873.38 Packet Pg. 552
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility
SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX
1.0 Yard $ 183.56 92.20 $ 274.91 $ 366.27 $ 457.63 $ 548.99 $ 1.0 Yard $ 198.24 99.57 $ 296.91 $ 395.58 $ 494.24 $ 592.91 $ Landfill Monitoring (1.36%) 2.50 1.25 3.74 4.98 6.22 7.47 Landfill Monitoring (1.36%) 2.70 1.35 4.04 5.38 6.72 8.06Monthly Charge $ 186.05 93.45 $ 278.65 $ 371.25 $ 463.86 $ 556.46 $ Monthly Charge $ 200.94 100.93 $ 300.95 $ 400.96 $ 500.96 $ 600.97 $
1.5 Yard $ 218.39 109.82 $ 326.96 $ 435.52 $ 544.09 $ 652.66 $ 1.5 Yard $ 235.86 118.61 $ 353.11 $ 470.36 $ 587.62 $ 704.87 $ Landfill Monitoring (1.36%) 2.97 1.49 4.45 5.92 7.40 8.88 Landfill Monitoring (1.36%) 3.21 1.61 4.80 6.40 7.99 9.59Monthly Charge $ 221.36 111.32 $ 331.40 $ 441.45 $ 551.49 $ 661.53 $ Monthly Charge $ 239.07 120.22 $ 357.92 $ 476.76 $ 595.61 $ 714.45 $
2.0 Yard $ 253.22 127.45 $ 379.00 $ 504.77 $ 630.55 $ 756.32 $ 2.0 Yard $ 273.48 137.65 $ 409.32 $ 545.15 $ 680.99 $ 816.83 $ Landfill Monitoring (1.36%) 3.44 1.73 5.15 6.86 8.58 10.29 Landfill Monitoring (1.36%) 3.72 1.87 5.57 7.41 9.26 11.11Monthly Charge $ 256.67 129.18 $ 384.15 $ 511.64 $ 639.12 $ 766.61 $ Monthly Charge $ 277.20 139.52 $ 414.89 $ 552.57 $ 690.25 $ 827.93 $
3.0 Yard $ 322.89 162.70 $ 483.08 $ 643.27 $ 803.46 $ 963.65 $ 3.0 Yard $ 348.72 175.72 $ 521.73 $ 694.73 $ 867.74 $ 1,040.74 $ Landfill Monitoring (1.36%) 4.39 2.21 6.57 8.75 10.93 13.11 Landfill Monitoring (1.36%) 4.74 2.39 7.10 9.45 11.80 14.15Monthly Charge $ 327.28 164.92 $ 489.65 $ 652.02 $ 814.39 $ 976.75 $ Monthly Charge $ 353.47 178.11 $ 528.82 $ 704.18 $ 879.54 $ 1,054.89 $
4.0 Yard $ 392.56 197.96 $ 587.17 $ 781.77 $ 976.37 $ 1,170.98 $ 4.0 Yard $ 423.97 213.79 $ 634.14 $ 844.31 $ 1,054.48 $ 1,264.66 $ Landfill Monitoring (1.36%) 5.34 2.69 7.99 10.63 13.28 15.93 Landfill Monitoring (1.36%) 5.77 2.91 8.62 11.48 14.34 17.20Monthly Charge $ 397.90 200.65 $ 595.15 $ 792.40 $ 989.65 $ 1,186.90 $ Monthly Charge $ 429.73 216.70 $ 642.76 $ 855.79 $ 1,068.82 $ 1,281.86 $
6.0 Yard $ 531.90 268.47 $ 795.33 $ 1,058.77 $ 1,322.20 $ 1,585.64 $ 6.0 Yard $ 574.45 289.94 $ 858.96 $ 1,143.47 $ 1,427.98 $ 1,712.49 $ Landfill Monitoring (1.36%) 7.23 3.65 10.82 14.40 17.98 21.56 Landfill Monitoring (1.36%) 7.81 3.94 11.68 15.55 19.42 23.29Monthly Charge $ 539.13 272.12 $ 806.15 $ 1,073.17 $ 1,340.18 $ 1,607.20 $ Monthly Charge $ 582.26 293.89 $ 870.64 $ 1,159.02 $ 1,447.40 $ 1,735.78 $
8.0 Yard $ 671.24 338.97 $ 1,003.50 $ 1,335.76 $ 1,668.03 $ 2,000.29 $ 8.0 Yard $ 724.94 366.09 $ 1,083.78 $ 1,442.63 $ 1,801.47 $ 2,160.32 $ Landfill Monitoring (1.36%) 9.13 4.61 13.65 18.17 22.69 27.20 Landfill Monitoring (1.36%) 9.86 4.98 14.74 19.62 24.50 29.38Monthly Charge $ 680.37 343.58 $ 1,017.15 $ 1,353.93 $ 1,690.71 $ 2,027.50 $ Monthly Charge $ 734.79 371.07 $ 1,098.52 $ 1,462.25 $ 1,825.97 $ 2,189.70 $ Special Collection Fees :
25% above weekly rate (monthly rate/4.33) Rate
L/F Monitoring
(1.36%) Total
Special Collection Fees :
25% above weekly rate (monthly rate/4.33) Rate
L/F Monitoring
(1.36%) Total
1.0 Yard Non-compacted 26.60 $ 0.36 $ 26.97 1.0 Yard Non-compacted 28.72 $ 0.39 $ 29.12
1.5 Yard Non-compacted 31.68 $ 0.43 $ 32.11 1.5 Yard Non-compacted 34.21 $ 0.47 $ 34.68
2.0 Yard Non-compacted 36.76 $ 0.50 $ 37.26 2.0 Yard Non-compacted 39.71 $ 0.54 $ 40.25
3.0 Yard Non-compacted 46.93 $ 0.64 $ 47.57 3.0 Yard Non-compacted 50.69 $ 0.69 $ 51.38
4.0 Yard Non-compacted 57.10 $ 0.78 $ 57.88 4.0 Yard Non-compacted 61.67 $ 0.84 $ 62.51
6.0 Yard Non-compacted 77.44 $ 1.05 $ 78.50 6.0 Yard Non-compacted 83.64 $ 1.14 $ 84.77
8.0 Yard Non-compacted 97.78 $ 1.33 $ 99.10 8.0 Yard Non-compacted 105.60 $ 1.44 $ 107.03 Landfill Monitoring fee is calculated at 1.36% on the total solid waste charge. Landfill Monitoring fee is calculated at 1.36% on the total solid waste charge.
CITY OF REDDING CITY OF REDDING
2024 2025
Commercial Container Rates Commercial Container Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
Packet Pg. 553
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility
SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX
1.0 Yard $ 214.10 107.54 $ 320.66 $ 427.22 $ 533.78 $ 640.34 $ 1.0 Yard $ 226.95 113.99 $ 339.90 $ 452.85 $ 565.81 $ 678.76 $ Landfill Monitoring (1.36%) 2.91 1.46 4.36 5.81 7.26 8.71 Landfill Monitoring (1.36%) 3.09 1.55 4.62 6.16 7.70 9.23Monthly Charge $ 217.01 109.00 $ 325.02 $ 433.03 $ 541.04 $ 649.05 $ Monthly Charge $ 230.03 115.54 $ 344.52 $ 459.01 $ 573.50 $ 687.99 $
1.5 Yard $ 254.73 128.10 $ 381.36 $ 507.99 $ 634.63 $ 761.26 $ 1.5 Yard $ 270.01 135.78 $ 404.24 $ 538.47 $ 672.70 $ 806.93 $ Landfill Monitoring (1.36%) 3.46 1.74 5.19 6.91 8.63 10.35 Landfill Monitoring (1.36%) 3.67 1.85 5.50 7.32 9.15 10.97Monthly Charge $ 258.19 129.84 $ 386.55 $ 514.90 $ 643.26 $ 771.61 $ Monthly Charge $ 273.69 137.63 $ 409.74 $ 545.80 $ 681.85 $ 817.91 $
2.0 Yard $ 295.36 148.66 $ 442.06 $ 588.77 $ 735.47 $ 882.17 $ 2.0 Yard $ 313.08 157.58 $ 468.59 $ 624.09 $ 779.60 $ 935.10 $ Landfill Monitoring (1.36%) 4.02 2.02 6.01 8.01 10.00 12.00 Landfill Monitoring (1.36%) 4.26 2.14 6.37 8.49 10.60 12.72Monthly Charge $ 299.38 150.68 $ 448.08 $ 596.77 $ 745.47 $ 894.17 $ Monthly Charge $ 317.34 159.72 $ 474.96 $ 632.58 $ 790.20 $ 947.82 $
3.0 Yard $ 376.62 189.78 $ 563.47 $ 750.31 $ 937.16 $ 1,124.00 $ 3.0 Yard $ 399.22 201.17 $ 597.28 $ 795.33 $ 993.38 $ 1,191.44 $ Landfill Monitoring (1.36%) 5.12 2.58 7.66 10.20 12.75 15.29 Landfill Monitoring (1.36%) 5.43 2.74 8.12 10.82 13.51 16.20Monthly Charge $ 381.74 192.36 $ 571.13 $ 760.52 $ 949.90 $ 1,139.29 $ Monthly Charge $ 404.65 203.90 $ 605.40 $ 806.15 $ 1,006.90 $ 1,207.64 $
4.0 Yard $ 457.88 230.90 $ 684.87 $ 911.86 $ 1,138.84 $ 1,365.83 $ 4.0 Yard $ 485.36 244.75 $ 725.96 $ 966.57 $ 1,207.17 $ 1,447.78 $ Landfill Monitoring (1.36%) 6.23 3.14 9.31 12.40 15.49 18.58 Landfill Monitoring (1.36%) 6.60 3.33 9.87 13.15 16.42 19.69Monthly Charge $ 464.11 234.04 $ 694.18 $ 924.26 $ 1,154.33 $ 1,384.40 $ Monthly Charge $ 491.96 248.08 $ 735.84 $ 979.71 $ 1,223.59 $ 1,467.47 $
6.0 Yard $ 620.41 313.14 $ 927.68 $ 1,234.95 $ 1,542.22 $ 1,849.48 $ 6.0 Yard $ 657.63 331.93 $ 983.34 $ 1,309.04 $ 1,634.75 $ 1,960.45 $ Landfill Monitoring (1.36%) 8.44 4.26 12.62 16.80 20.97 25.15 Landfill Monitoring (1.36%) 8.94 4.51 13.37 17.80 22.23 26.66Monthly Charge $ 628.85 317.40 $ 940.29 $ 1,251.74 $ 1,563.19 $ 1,874.64 $ Monthly Charge $ 666.58 336.44 $ 996.71 $ 1,326.85 $ 1,656.98 $ 1,987.12 $
8.0 Yard $ 782.93 395.38 $ 1,170.48 $ 1,558.04 $ 1,945.59 $ 2,333.14 $ 8.0 Yard $ 829.91 419.10 $ 1,240.71 $ 1,651.52 $ 2,062.32 $ 2,473.13 $ Landfill Monitoring (1.36%) 10.65 5.38 15.92 21.19 26.46 31.73 Landfill Monitoring (1.36%) 11.29 5.70 16.87 22.46 28.05 33.63Monthly Charge $ 793.58 400.75 $ 1,186.40 $ 1,579.23 $ 1,972.05 $ 2,364.87 $ Monthly Charge $ 841.19 424.80 $ 1,257.59 $ 1,673.98 $ 2,090.37 $ 2,506.76 $ Special Collection Fees :
25% above weekly rate (monthly rate/4.33) Rate
L/F Monitoring
(1.36%) Total
Special Collection Fees :
25% above weekly rate (monthly rate/4.33) Rate
L/F Monitoring
(1.36%) Total
1.0 Yard Non-compacted 31.02 $ 0.42 $ 31.45 1.0 Yard Non-compacted 32.88 $ 0.45 $ 33.34
1.5 Yard Non-compacted 36.95 $ 0.50 $ 37.45 1.5 Yard Non-compacted 39.17 $ 0.53 $ 39.70
2.0 Yard Non-compacted 42.88 $ 0.58 $ 43.47 2.0 Yard Non-compacted 45.46 $ 0.62 $ 46.07
3.0 Yard Non-compacted 54.74 $ 0.74 $ 55.49 3.0 Yard Non-compacted 58.03 $ 0.79 $ 58.82
4.0 Yard Non-compacted 66.61 $ 0.91 $ 67.51 4.0 Yard Non-compacted 70.60 $ 0.96 $ 71.56
6.0 Yard Non-compacted 90.33 $ 1.23 $ 91.56 6.0 Yard Non-compacted 95.75 $ 1.30 $ 97.05
8.0 Yard Non-compacted 114.05 $ 1.55 $ 115.59 8.0 Yard Non-compacted 120.89 $ 1.64 $ 122.53Landfill Monitoring fee is calculated at 1.36% on the total solid waste charge. Landfill Monitoring fee is calculated at 1.36% on the total solid waste charge.
CITY OF REDDING CITY OF REDDING
2026 2027
Commercial Container Rates Commercial Container Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
Packet Pg. 554
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility
SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX
2.0 Yard $ 414.66 208.17 $ 621.15 $ 827.64 $ 1,034.13 $ 1,240.62 $ 2.0 Yard $ 447.83 224.82 $ 670.84 $ 893.85 $ 1,116.86 $ 1,339.87 $ Landfill Monitoring (1.36%) 5.64 2.83 8.45 11.26 14.06 16.87 Landfill Monitoring (1.36%) 6.09 3.06 9.12 12.16 15.19 18.22Monthly Charge $ 420.30 211.00 $ 629.60 $ 838.89 $ 1,048.19 $ 1,257.49 $ Monthly Charge $ 453.92 227.88 $ 679.96 $ 906.01 $ 1,132.05 $ 1,358.09 $
3.0 Yard $ 565.04 283.78 $ 846.31 $ 1,127.57 $ 1,408.83 $ 1,690.10 $ 3.0 Yard $ 610.25 306.48 $ 914.01 $ 1,217.78 $ 1,521.54 $ 1,825.30 $ Landfill Monitoring (1.36%) 7.68 3.86 11.51 15.33 19.16 22.99 Landfill Monitoring (1.36%) 8.30 4.17 12.43 16.56 20.69 24.82Monthly Charge $ 572.73 287.64 $ 857.82 $ 1,142.90 $ 1,427.99 $ 1,713.08 $ Monthly Charge $ 618.55 310.65 $ 926.44 $ 1,234.34 $ 1,542.23 $ 1,850.13 $
4.0 Yard $ 715.43 359.39 $ 1,071.46 $ 1,427.50 $ 1,783.54 $ 2,139.57 $ 4.0 Yard $ 772.66 388.14 $ 1,157.18 $ 1,541.70 $ 1,926.22 $ 2,310.74 $ Landfill Monitoring (1.36%) 9.73 4.89 14.57 19.41 24.26 29.10 Landfill Monitoring (1.36%) 10.51 5.28 15.74 20.97 26.20 31.43Monthly Charge $ 725.16 364.28 $ 1,086.04 $ 1,446.92 $ 1,807.79 $ 2,168.67 $ Monthly Charge $ 783.17 393.42 $ 1,172.92 $ 1,562.67 $ 1,952.42 $ 2,342.17 $
5.0 Yard* $ 865.81 435.00 $ 1,296.62 $ 1,727.43 $ 2,158.24 $ 2,589.05 $ 5.0 Yard* $ 935.08 469.80 $ 1,400.35 $ 1,865.63 $ 2,330.90 $ 2,796.18 $ Landfill Monitoring (1.36%) 11.78 5.92 17.63 23.49 29.35 35.21 Landfill Monitoring (1.36%) 12.72 6.39 19.04 25.37 31.70 38.03Monthly Charge $ 877.59 440.92 $ 1,314.26 $ 1,750.93 $ 2,187.60 $ 2,624.26 $ Monthly Charge $ 947.80 476.19 $ 1,419.40 $ 1,891.00 $ 2,362.60 $ 2,834.21 $
6.0 Yard $ 1,016.20 510.61 $ 1,521.78 $ 2,027.36 $ 2,532.95 $ 3,038.53 $ 6.0 Yard $ 1,097.49 551.46 $ 1,643.52 $ 2,189.55 $ 2,735.58 $ 3,281.61 $ Landfill Monitoring (1.36%) 13.82 6.94 20.70 27.57 34.45 41.32 Landfill Monitoring (1.36%) 14.93 7.50 22.35 29.78 37.20 44.63Monthly Charge $ 1,030.02 517.56 $ 1,542.48 $ 2,054.94 $ 2,567.40 $ 3,079.86 $ Monthly Charge $ 1,112.42 558.96 $ 1,665.88 $ 2,219.33 $ 2,772.79 $ 3,326.24 $
8.0 Yard* $ 1,316.97 661.84 $ 1,972.10 $ 2,627.23 $ 3,282.36 $ 3,937.49 $ 8.0 Yard $ 1,422.33 714.79 $ 2,129.87 $ 2,837.41 $ 3,544.95 $ 4,252.49 $ Landfill Monitoring (1.36%) 17.91 9.00 26.82 35.73 44.64 53.55 Landfill Monitoring (1.36%) 19.34 9.72 28.97 38.59 48.21 57.83Monthly Charge $ 1,334.88 670.84 $ 1,998.92 $ 2,662.96 $ 3,327.00 $ 3,991.04 $ Monthly Charge $ 1,441.67 724.51 $ 2,158.83 $ 2,875.99 $ 3,593.16 $ 4,310.32 $ Special Collection Fees Rate
L/F Monitoring
(1.36%) Total Special Collection Fees Rate
L/F Monitoring
(1.36%) Total
2.0 Yard Compactor 60.05 $ 0.82 $ 60.86 2.0 Yard Compactor 64.85 $ 0.88 $ 65.73
3.0 Yard Compactor 81.86 $ 1.11 $ 82.97 3.0 Yard Compactor 88.41 $ 1.20 $ 89.61
4.0 Yard Compactor 103.67 $ 1.41 $ 105.08 4.0 Yard Compactor 111.96 $ 1.52 $ 113.495.0 Yard Compactor 125.48 $ 1.71 $ 127.19 5.0 Yard Compactor 135.52 $ 1.84 $ 137.366.0 Yard Compactor 147.29 $ 2.00 $ 149.30 6.0 Yard Compactor 159.08 $ 2.16 $ 161.247.0 Yard Compactor 169.10 $ 2.30 $ 171.40 7.0 Yard Compactor 182.63 $ 2.48 $ 185.128.0 Yard Compactor 190.91 $ 2.60 $ 193.51 8.0 Yard Compactor 206.19 $ 2.80 $ 208.99Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge.* The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes * The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes Monthly compactor rates are calculated by multiplying single collection rate (special collection fee) by number of collections per week and then multiplying by 4.33) Monthly compactor rates are calculated by multiplying single collection rate (special collection fee) by number of collections per week and then multiplying by 4.33) Special collection fees are calculated at 63% higher than the weekly rate for uncompacted front-load containers to reflect the heavier weight. (The weekly rate is calculated by dividing the monthly rate by 4.33) Special collection fees are calculated at 63% higher than the weekly rate for uncompacted front-load containers to reflect the heavier weight. (The weekly rate is calculated by dividing the monthly rate by 4.33) 2024 2025
Front Load Compactor Rates Front Load Compactor Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
CITY OF REDDING CITY OF REDDING
Packet Pg. 555
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility
SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX SIZE / COLLECTIONS PER WEEK ONE TWO THREE FOUR FIVE SIX
2.0 Yard $ 483.66 242.81 $ 724.51 $ 965.36 $ 1,206.21 $ 1,447.06 $ 2.0 Yard $ 512.68 257.37 $ 767.98 $ 1,023.28 $ 1,278.58 $ 1,533.88 $ Landfill Monitoring (1.36%) 6.58 3.30 9.85 13.13 16.40 19.68 Landfill Monitoring (1.36%) 6.97 3.50 10.44 13.92 17.39 20.86Monthly Charge $ 490.23 246.11 $ 734.36 $ 978.49 $ 1,222.61 $ 1,466.74 $ Monthly Charge $ 519.65 260.88 $ 778.42 $ 1,037.20 $ 1,295.97 $ 1,554.74 $
3.0 Yard $ 659.07 331.00 $ 987.13 $ 1,315.20 $ 1,643.26 $ 1,971.33 $ 3.0 Yard $ 698.61 350.86 $ 1,046.36 $ 1,394.11 $ 1,741.86 $ 2,089.61 $ Landfill Monitoring (1.36%) 8.96 4.50 13.42 17.89 22.35 26.81 Landfill Monitoring (1.36%) 9.50 4.77 14.23 18.96 23.69 28.42Monthly Charge $ 668.03 335.50 $ 1,000.56 $ 1,333.08 $ 1,665.61 $ 1,998.14 $ Monthly Charge $ 708.11 355.63 $ 1,060.59 $ 1,413.07 $ 1,765.55 $ 2,118.03 $
4.0 Yard $ 834.48 419.19 $ 1,249.76 $ 1,665.04 $ 2,080.32 $ 2,495.60 $ 4.0 Yard $ 884.54 444.35 $ 1,324.74 $ 1,764.94 $ 2,205.14 $ 2,645.34 $ Landfill Monitoring (1.36%) 11.35 5.70 17.00 22.64 28.29 33.94 Landfill Monitoring (1.36%) 12.03 6.04 18.02 24.00 29.99 35.98Monthly Charge $ 845.82 424.89 $ 1,266.75 $ 1,687.68 $ 2,108.61 $ 2,529.54 $ Monthly Charge $ 896.57 450.39 $ 1,342.76 $ 1,788.94 $ 2,235.13 $ 2,681.31 $
5.0 Yard* $ 1,009.88 507.39 $ 1,512.38 $ 2,014.88 $ 2,517.37 $ 3,019.87 $ 5.0 Yard* $ 1,070.48 537.83 $ 1,603.12 $ 2,135.77 $ 2,668.42 $ 3,201.06 $ Landfill Monitoring (1.36%) 13.73 6.90 20.57 27.40 34.24 41.07 Landfill Monitoring (1.36%) 14.56 7.31 21.80 29.05 36.29 43.53Monthly Charge $ 1,023.62 514.29 $ 1,532.95 $ 2,042.28 $ 2,551.61 $ 3,060.94 $ Monthly Charge $ 1,085.04 545.15 $ 1,624.93 $ 2,164.82 $ 2,704.71 $ 3,244.60 $
6.0 Yard $ 1,185.29 595.58 $ 1,775.01 $ 2,364.72 $ 2,954.43 $ 3,544.14 $ 6.0 Yard $ 1,256.41 631.32 $ 1,881.51 $ 2,506.60 $ 3,131.70 $ 3,756.79 $ Landfill Monitoring (1.36%) 16.12 8.10 24.14 32.16 40.18 48.20 Landfill Monitoring (1.36%) 17.09 8.59 25.59 34.09 42.59 51.09Monthly Charge $ 1,201.41 603.68 $ 1,799.15 $ 2,396.88 $ 2,994.61 $ 3,592.34 $ Monthly Charge $ 1,273.50 639.90 $ 1,907.09 $ 2,540.69 $ 3,174.29 $ 3,807.88 $
8.0 Yard* $ 1,536.11 771.97 $ 2,300.26 $ 3,064.40 $ 3,828.54 $ 4,592.69 $ 8.0 Yard* $ 1,628.28 818.29 $ 2,438.27 $ 3,248.26 $ 4,058.25 $ 4,868.25 $ Landfill Monitoring (1.36%) 20.89 10.50 31.28 41.68 52.07 62.46 Landfill Monitoring (1.36%) 22.14 11.13 33.16 44.18 55.19 66.21Monthly Charge $ 1,557.00 782.47 $ 2,331.54 $ 3,106.07 $ 3,880.61 $ 4,655.15 $ Monthly Charge $ 1,650.42 829.42 $ 2,471.43 $ 3,292.44 $ 4,113.45 $ 4,934.45 $ Special Collection Fees Rate
L/F Monitoring
(1.36%) Total Special Collection Fees Rate
L/F Monitoring
(1.36%) Total
2.0 Yard Compactor 70.04 $ 0.95 $ 70.99 2.0 Yard Compactor 74.24 $ 1.01 $ 75.25
3.0 Yard Compactor 95.48 $ 1.30 $ 96.78 3.0 Yard Compactor 101.21 $ 1.38 $ 102.59
4.0 Yard Compactor 120.92 $ 1.64 $ 122.57 4.0 Yard Compactor 128.18 $ 1.74 $ 129.925.0 Yard Compactor 146.36 $ 1.99 $ 148.35 5.0 Yard Compactor 155.14 $ 2.11 $ 157.256.0 Yard Compactor 171.80 $ 2.34 $ 174.14 6.0 Yard Compactor 182.11 $ 2.48 $ 184.597.0 Yard Compactor 197.24 $ 2.68 $ 199.93 7.0 Yard Compactor 209.08 $ 2.84 $ 211.928.0 Yard Compactor 222.68 $ 3.03 $ 225.71 8.0 Yard Compactor 236.04 $ 3.21 $ 239.25Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge.* The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes * The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes Monthly compactor rates are calculated by multiplying single collection rate (special collection fee) by number of collections per week and then multiplying by 4.33) Monthly compactor rates are calculated by multiplying single collection rate (special collection fee) by number of collections per week and then multiplying by 4.33) Special collection fees are calculated at 63% higher than the weekly rate for uncompacted front-load containers to reflect the heavier weight. (The weekly rate is calculated by dividing the monthly rate by 4.33) Special collection fees are calculated at 63% higher than the weekly rate for uncompacted front-load containers to reflect the heavier weight. (The weekly rate is calculated by dividing the monthly rate by 4.33) 2026 2027
Front Load Compactor Rates Front Load Compactor Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
CITY OF REDDING CITY OF REDDING
Packet Pg. 556
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Roll Off Size: Roll Off Size:
10 Cubic Yards $357.94 2.50 Tons $ 82.50/Ton 10 Cubic Yards $ 386.58 2.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.87 Landfill Monitoring Fee (1.36%) 5.26 $ 362.81 $ 391.83
15 Cubic Yards* $ 422.92 2.75 Tons $ 82.50/Ton 15 Cubic Yards* $ 456.75 2.75 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 5.75 Landfill Monitoring Fee (1.36%) 6.21 $ 428.67 $ 462.97
20 Cubic Yards $487.90 3.50 Tons $ 82.50/Ton 20 Cubic Yards $ 526.93 3.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 6.64 Landfill Monitoring Fee (1.36%) 7.17 $ 494.54 $ 534.10
25 Cubic Yards $552.88 4.00 Tons $ 82.50/Ton 25 Cubic Yards $ 597.11 4.00 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 7.52 Landfill Monitoring Fee (1.36%) 8.12 $ 560.40 $ 605.23
30 Cubic Yards $617.87 4.50 Tons $ 82.50/Ton 30 Cubic Yards $ 667.30 4.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 8.40 Landfill Monitoring Fee (1.36%) 9.08 $ 626.27 $ 676.37
35 Cubic Yards* $ 682.85 5.00 Tons $ 82.50/Ton 35 Cubic Yards* $ 737.48 5.00 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 9.29 Landfill Monitoring Fee (1.36%) 10.03 $ 692.14 $ 747.51
37 Cubic Yards $708.84 5.25 Tons $ 82.50/Ton 37 Cubic Yards $ 765.55 5.25 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 9.64 Landfill Monitoring Fee (1.36%) 10.41 $ 718.48 $ 775.96
40 Cubic Yards $747.83 5.50 Tons $ 82.50/Ton 40 Cubic Yards $ 807.66 5.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 10.17 Landfill Monitoring Fee (1.36%) 10.98 $ 758.00 $ 818.64
Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. * The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes * The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes Overweight
Fee:
Unable to Collect Fee: An additional fee of $ 81.00 shall be charged if by reason of inaccessibility, the trash compactor cannot be collected, and an additional collection trip is necessary.
Unable to Collect Fee: An additional fee of $ 82.50 shall be charged if by reason of inaccessibility, the trash compactor cannot be collected, and an additional collection trip is necessary. 2024 2025
Rate Per Pull: Weight Limit:
Overweight
Fee: Rate Per Pull: Weight Limit:
Roll Off Compactor Rates Roll Off Compactor Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
CITY OF REDDING CITY OF REDDING
Packet Pg. 557
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Roll Off Size: Roll Off Size:
10 Cubic Yards $ 417.50 2.50 Tons $ 82.50/Ton 10 Cubic Yards $ 442.55 2.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 5.68 Landfill Monitoring Fee (1.36%) 6.02 $ 423.18 $ 448.57
15 Cubic Yards* $ 493.29 2.75 Tons $ 82.50/Ton 15 Cubic Yards* $ 522.89 2.75 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 6.71 Landfill Monitoring Fee (1.36%) 7.11 $ 500.00 $ 530.00
20 Cubic Yards $ 569.09 3.50 Tons $ 82.50/Ton 20 Cubic Yards $ 603.23 3.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 7.74 Landfill Monitoring Fee (1.36%) 8.20 $ 576.83 $ 611.44
25 Cubic Yards $ 644.88 4.00 Tons $ 82.50/Ton 25 Cubic Yards $ 683.57 4.00 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 8.77 Landfill Monitoring Fee (1.36%) 9.30 $ 653.65 $ 692.87
30 Cubic Yards $ 720.68 4.50 Tons $ 82.50/Ton 30 Cubic Yards $ 763.92 4.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 9.80 Landfill Monitoring Fee (1.36%) 10.39 $ 730.48 $ 774.31
35 Cubic Yards* $ 796.48 5.00 Tons $ 82.50/Ton 35 Cubic Yards* $ 844.26 5.00 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 10.83 Landfill Monitoring Fee (1.36%) 11.48 $ 807.31 $ 855.75
37 Cubic Yards $ 826.79 5.25 Tons $ 82.50/Ton 37 Cubic Yards $ 876.40 5.25 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 11.24 Landfill Monitoring Fee (1.36%) 11.92 $ 838.04 $ 888.32
40 Cubic Yards $ 872.27 5.50 Tons $ 82.50/Ton 40 Cubic Yards $ 924.61 5.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 11.86 Landfill Monitoring Fee (1.36%) 12.57 $ 884.13 $ 937.18
Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. * The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes * The City has no accounts for this size, so rates are interpolated based on larger and smaller compactor sizes Unable to Collect Fee: An additional fee of $ 82.50 shall be charged if by reason of inaccessibility, the trash compactor cannot be collected, and an additional collection trip is necessary.
Unable to Collect Fee: An additional fee of $ 82.50 shall be charged if by reason of inaccessibility, the trash compactor cannot be collected, and an additional collection trip is necessary. 2026 2027
Rate Per Pull: Weight Limit:
Overweight
Fee: Rate Per Pull: Weight Limit:
Overweight
Fee:
Roll Off Compactor Rates Roll Off Compactor Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
CITY OF REDDING CITY OF REDDING
Packet Pg. 558
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Roll Off Size: Roll Off Size:
10 Cubic Yards $271.30 19.38 $ 1.50 Tons $ 82.50/Ton 10 Cubic Yards $ 20.93 293.00 $ 1.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 3.69 0.26 Landfill Monitoring Fee (1.36%) 3.98 0.28 $ 19.64 274.99 $ $ 21.21 296.99 $
16 Cubic Yards $ 21.24 297.29 $ 1.75 Tons $ 82.50/Ton 16 Cubic Yards $ 22.93 321.08 $ 1.75 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.04 0.29 Landfill Monitoring Fee (1.36%) 4.37 0.31 $ 21.52 301.34 $ $ 23.25 325.44 $
20 Cubic Yards $314.62 22.47 $ 2.50 Tons $ 82.50/Ton 20 Cubic Yards $ 24.27 339.79 $ 2.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.28 0.31 Landfill Monitoring Fee (1.36%) 4.62 0.33 $ 22.78 318.90 $ $ 24.60 344.41 $
25 Cubic Yards $336.28 24.02 $ 3.00 Tons $ 82.50/Ton 25 Cubic Yards $ 25.94 363.18 $ 3.00 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.57 0.33 Landfill Monitoring Fee (1.36%) 4.94 0.35 $ 24.35 340.85 $ $ 26.29 368.12 $
30 Cubic Yards $357.94 25.57 $ 3.50 Tons $ 82.50/Ton 30 Cubic Yards $ 27.61 386.58 $ 3.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.87 0.35 Landfill Monitoring Fee (1.36%) 5.26 0.38 $ 25.92 362.81 $ $ 28.00 391.83 $
40 Cubic Yards $401.26 28.66 $ 4.50 Tons $ 82.50/Ton 40 Cubic Yards $ 30.95 433.36 $ 4.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 5.46 0.39 Landfill Monitoring Fee (1.36%) 5.89 0.42 $ 29.06 406.72 $ $ 31.39 439.25 $
Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. (Temporary Boxes Must Be Pulled Every 14 Days) (Temporary Boxes Must Be Pulled Every 14 Days) (Permanent Boxes Must Be Pulled Every 30 Days) (Permanent Boxes Must Be Pulled Every 30 Days) Extended Time:
(Rate/ Day
Over 14 Days) Weight Limit:
Overweight
Fee:
Rate Per 14
Days or Per
Pull:
Extended Time:
(Rate/ Day
Over 14 Days) Weight Limit:
Overweight
Fee:
Rate Per 14
Days or Per
Pull:
Unable to Collect Fee: An additional fee of $ 81.00 shall be charged if by reason of inaccessibility or over filling, the roll off box cannot be collected, and an additional collection trip is necessary.
Unable to Collect Fee: An additional fee of $ 81.00 shall be charged if by reason of inaccessibility or over filling, the roll off box cannot be collected, and an additional collection trip is necessary. 2024 2025
Roll Off Rates Roll Off Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
CITY OF REDDING CITY OF REDDING
Packet Pg. 559
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Roll Off Size: Roll Off Size:
10 Cubic Yards $ 22.60 316.44 $ 1.50 Tons $ 82.50/Ton 10 Cubic Yards $ 23.96 335.43 $ 1.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.30 0.31 Landfill Monitoring Fee (1.36%) 4.56 0.33 $ 22.91 320.75 $ $ 24.29 339.99 $
16 Cubic Yards $ 24.77 346.76 $ 1.75 Tons $ 82.50/Ton 16 Cubic Yards $ 26.25 367.57 $ 1.75 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.72 0.34 Landfill Monitoring Fee (1.36%) 5.00 0.36 $ 25.11 351.48 $ $ 26.61 372.57 $
20 Cubic Yards $ 26.21 366.97 $ 2.50 Tons $ 82.50/Ton 20 Cubic Yards $ 27.79 388.99 $ 2.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 4.99 0.36 Landfill Monitoring Fee (1.36%) 5.29 0.38 $ 26.57 371.96 $ $ 28.16 394.28 $
25 Cubic Yards $ 28.02 392.24 $ 3.00 Tons $ 82.50/Ton 25 Cubic Yards $ 29.70 415.77 $ 3.00 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 5.33 0.38 Landfill Monitoring Fee (1.36%) 5.65 0.40 $ 28.40 397.57 $ $ 30.10 421.43 $
30 Cubic Yards $ 29.82 417.50 $ 3.50 Tons $ 82.50/Ton 30 Cubic Yards $ 31.61 442.55 $ 3.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 5.68 0.41 Landfill Monitoring Fee (1.36%) 6.02 0.43 $ 30.24 423.18 $ $ 32.05 448.57 $
40 Cubic Yards $ 33.43 468.03 $ 4.50 Tons $ 82.50/Ton 40 Cubic Yards $ 35.44 496.11 $ 4.50 Tons $ 82.50/Ton Landfill Monitoring Fee (1.36%) 6.37 0.45 Landfill Monitoring Fee (1.36%) 6.75 0.48 $ 33.90 474.39 $ $ 35.93 502.86 $
Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. Landfill Monitoring fees are calculated at 1.36% on the total solid waste charge. (Temporary Boxes Must Be Pulled Every 14 Days) (Temporary Boxes Must Be Pulled Every 14 Days) (Permanent Boxes Must Be Pulled Every 30 Days) (Permanent Boxes Must Be Pulled Every 30 Days) Unable to Collect Fee: An additional fee of $ 81.00 shall be charged if by reason of inaccessibility or over filling, the roll off box cannot be collected, and an additional collection trip is necessary.
Overweight
Fee:
Rate Per 14
Days or Per
Pull:
Extended Time:
(Rate/ Day
Over 14 Days) Weight Limit:
Overweight
Fee:
Rate Per 14
Days or Per
Pull:
Extended Time:
(Rate/ Day
Over 14 Days) Weight Limit:
Unable to Collect Fee: An additional fee of $ 81.00 shall be charged if by reason of inaccessibility or over filling, the roll off box cannot be collected, and an additional collection trip is necessary. 2026 2027
Roll Off Rates Roll Off Rates
SOLID WASTE DIVISION SOLID WASTE DIVISION
CITY OF REDDING CITY OF REDDING
Packet Pg. 560
Attachment: ^Solid Waste - EXHIBIT A (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the following regarding proposed service rates for the City of Redding Solid Waste, Water, and Wastewater Utilities:
(1) Approve the Protest Notice format;
(2) Approve adding a new rate for the Solid Waste Utility for commercial source-separated food waste collection; and
(3) Approve setting a Public Hearing on November 7, 2023, 6:00 p.m., in the City Council Chambers, 777 Cypress Avenue, Redding, California, to consider the four-year package of rates for Solid Waste, Water, and Wastewater Utilities proposed for implementation on or about January 1, 2024.
Fiscal Impact
The proposed new monthly service rate and annual utility rate increases for Solid Waste, Water and Wastewater over the next four years are provided in the Background below. For comparison purposes, a typical single-family residential customer uses a yearly average of 2,100 cubic feet of water per month, is connected to the City’s sewer system, and utilizes a single 96-gallon refuse cart. On or about January 1, 2024, the total impact for the typical household will be approximately $16.83 per month. For years two, three and four, annually, service rates would increase by approximately $10 per month for a total increase above current rates of $47.73 per month in year four.
The rate package for Solid Waste includes the addition of a new rate proposed for the collection of commercial source-separate food waste to support the implementation of a new service for businesses subject to the food waste diversion requirements of Senate Bill 1383.
Utility customer revenue may not be used for other general government purposes.
MEETING DATE: September 5, 2023
ITEM NO. 9.11(e)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.11(e)--Consider setting a Public Hearing regarding a four-year service rate package for the City of Redding Solid Waste, Water, and Wastewater Utilities.
Chuck Aukland, Public
Works Director
Packet Pg. 561 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Report to Redding City Council August 30, 2023
Re: 9.11(e)--Set Public Hearing regarding four-year rate increases for Solid Waste and Utilities Page 2
Alternative Action
Alternatives for the Council to consider are:
1. Modify and approve the protest notice thereby adjusting the proposed rate increases (up or down) and set the public hearing for November 7, 2023. The implication of this alternative is that staff will, to the extent practical, adjust utility expenses (capital project schedules and programs) to match revenues. If proposed rates are adjusted downward the ability to properly maintain the utility systems may be compromised; or
2. The Council may decline to set a public hearing at this time and direct staff to come back at a later date to show additional justification for any rate adjustments. The implication of this alternative is that the Council determines no rate adjustments are necessary at this time but would consider adjustments at a later date.
Background/Analysis
Rate Update Process. The City of Redding (City) retained NBS Consultants to undertake the necessary cost-of-service studies and utility-rate analyses used to prepare a new service rate for the implementation of commercial source-separated food waste collection and rate adjustment recommendations for the Solid Waste, Wastewater, and Water Utilities. The recommended rates take into consideration the maintenance and operation of each utility, such as purchasing raw water, electricity, supplies, rehabilitation and replacement of equipment and infrastructure, personnel costs, and regulatory compliance.
As part of the update process, staff asked a number of citizens to sit as an "advisory group" (AG) to assist staff and the consultant. Public Works often uses AGs to ensure staff understands the impacts of decisions on various utility and infrastructure users in the community. The AG for this effort was composed of the following individuals who are utility rate customers through their home and/or business in Redding:
• Cindy Fisher – Vice President of Cornerstone Community Bank; • Trisha Funk – Financial Counselor and Advisor;
• Larry Olmstead – President & CEO of United Way of Northern California; • Cameron Tiraterra – Restaurant Owner;
• Janice Cunningham – Real Estate Consultant; and
• Sami Kader – Business Owner/Consulting (Civil) Engineer.
The focus of the AG was to ensure that the methodology used in the analyses was appropriate, function as a "sounding board" regarding options to modify the rate structures, and provide personal input on the reasonableness of the rates and fees. The AG met six times between May and August 2023, and provided extremely valuable input regarding financial stability, capital improvement program time frames, potential adjustments to the rate structures, and a host of other items.
Packet Pg. 562 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Report to Redding City Council August 30, 2023
Re: 9.11(e)--Set Public Hearing regarding four-year rate increases for Solid Waste and Utilities Page 3
Recent Rate Adjustments. The City Council last considered water, wastewater, and solid waste rate adjustments during a public hearing in February, 2020. At that time, the Council approved increases for the three Utilities as follows:
UTILITY 2020* 2021* 2022* 2023*
Solid Waste 3%
$0.89
3%
$0.78
3%
$0.80
3%
$0.82
Wastewater 4%
$2.19
4%
$2.28
4%
$2.37
4%
$2.47
Water 4%
$0.60
4%
$2.11
4%
$2.18
4%
$2.22
TOTAL $3.68 $5.17 $5.35 $5.51
*Monthly increase for typical single-family home using 96-gallon solid waste service and 2,100 cubic feet of water per month.
In order to maintain adequate financial operating reserves and relative rate stability through time, it is appropriate that the Council consider adopting Water, Wastewater, and Solid Waste (collectively referred to as Utilities) rate adjustments incrementally to avoid potential future "rate shock," while maintaining the financial integrity of the City's Utilities.
Proposed Rate Increases. The following table shows the proposed four years of rate increases for the Utilities. The amounts shown are the proposed monthly increases for a typical singlefamily residence for each year of the program, which would become effective on or about January 1, 2024.
UTILITY 2024* 2025* 2026* 2027*
Solid Waste 15%
$4.29
8%
$2.61
8%
$2.82
6%
$2.28
Wastewater 5%
$3.21
5%
$3.37
4%
$2.83
4%
$2.94
Water 12% /
18%**
$9.33
6.5%
$4.35
6.5%
$4.68
6.5%
$5.02
TOTAL $16.83 $10.33 $10.33 $10.24
*Monthly increase for typical single-family home using 96-gallon solid waste service and 2,100 cubic feet of water per month. **Monthly increase for the fixed meter charge is 12% and the increase for the variable/commodity charge is 18% for a single-family home Need for Rate Increases. The City provides various Utility services for its citizens and some select areas outside the City. The day-to-day operations of each utility are funded through monthly service rates and are not supported by property taxes or sales taxes paid by residents.
The City's utility operations must be financially self-sufficient and fiscally responsible, and must provide reliable services to prevent impacts to customers as a result of deferred maintenance or lack of system capacity. While the Water, Wastewater and Solid Waste Utilities have been Packet Pg. 563 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Report to Redding City Council August 30, 2023
Re: 9.11(e)--Set Public Hearing regarding four-year rate increases for Solid Waste and Utilities Page 4
highly successful in containing costs, there are ongoing fiscal challenges that must be addressed, including:
• Expanding environmental and regulatory mandates associated with water quality, waste diversion (increased recycling), air quality, endangered-species protection, and more; • Increasing fuel, energy, chemical, material, equipment, and labor costs in all utilities exacerbated by the recent inflationary pressure nationwide; • Needed upgrades to Foothill Treatment Plant, new source water wells and replacement of Pump Station No. 1 in the Water Utility;
• Critical aging pipe-replacement needs in the Water distribution and Wastewater collection systems;
• Meeting debt service associated with the critical past upgrades to the Clear Creek Wastewater Treatment Plant and the Stillwater Wastewater Treatment Plant; and • Needed upgrades and expansion of the City of Redding Transfer and Recycling Facility.
These challenges place continuous upward pressure on rates, and they will continue to do so into the foreseeable future for the Utilities. By proactively anticipating these future needs, the City and its Utilities strive to prevent dramatic and unanticipated increases in rates and disruption to services and maintain a reasonable level of operating funds using the lowest responsible rates.
However, with unanticipated increased inflationary pressure, major capital requirements and new regulatory requirements, particularly in the Water and Solid Waste Utilities, there is a need to reset rates higher than typical before they stabilize into modest annual adjustments.
Because each Utility is fundamentally different, detailed information and the recommended rates are summarized for each Utility in Attachments B, C, and D.
Public Participation in Rate Setting Process. To ensure public participation in the rate-setting process and implement the requirements of Proposition 218, a Notice of Public Hearing and Protest Procedures (Notice) will be mailed to every property owner as well as each Water, Wastewater, and Solid Waste Utility customer in the City/service area receiving one or more of these services in accordance with Resolution 2019-93 adopted on September 17, 2019. The notice will be mailed a minimum of forty-five days prior to the date of the public hearing. This will involve noticing to over 32,000 utility account holders and parcel owners within the City and another 1,000 outside the City. If the total protest forms representing a simple majority (50 percent plus one) of the properties are returned against the proposed rate adjustments, the Council will not be able to enact any rate increases.
In order to reduce costs, the proposal is to consolidate the hearings and notices for the Water, Wastewater and Solid Waste Utilities into one combined notice and hearing, and establish rate adjustments for a four-year period. Additional notification of the public hearing and proposed rate increases will include postings on the City's website and social media outlets, and coverage in the newspaper and other local media sources. Staff hosted a public informational workshop in the City’s Community Room on August 31, 2023.
Packet Pg. 564 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Report to Redding City Council August 30, 2023
Re: 9.11(e)--Set Public Hearing regarding four-year rate increases for Solid Waste and Utilities Page 5
Environmental Review
This activity is not a project as defined by the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^2023 Prop 218 Notice
^2023 Solid Waste System Overview and Proposed Rates
^2023 Wastewater System Overview and Proposed Rates
^2023 Water System Overview and Proposed Rates
^Resolution 2019-93 Procedures for Protest Hearings
Packet Pg. 565 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) This notice explains proposed Water, Wastewater, and Solid Waste Utility service rate increases for City of Redding customers. The proposed rate increases will only apply to utilities provided by the City, not services provided by other entities, such as the Bella Vista Water District or Centerville Community Services District. Please review your City utility bill to determine services received.
What Do Water, Wastewater, and Solid Waste Rates Fund? The City provides water, wastewater (sewer), and solid waste (refuse and recycling) services to residential and commercial customers in the Redding area. These Municipal Utilities are not-for-profit and are operated to be financially self-sufficient. Monthly rates paid by customers are the primary source of revenue. Utility rates are calculated to cover the costs for the maintenance and operation of each Utility, such as purchasing raw water, electricity, supplies, rehabilitation and replacement of equipment/infrastructure, employee costs, and regulatory compliance. Ratepayer revenue is not used for other general government purposes. For more information about water and wastewater rates and services, please call (530) 224-6068, and for solid waste rates and services, please call (530) 224-6201. Visit www.reddingutilities.com for additional information, including City Council reports, utility master plans, and other related materials.
Why are rate increases being proposed? An increase in the rates is necessary in order to cover increased costs associated with operating and maintaining the City’s water, wastewater, and solid waste systems. Specifically, the unexpected and significant inflationary cost increases of energy, fuel, chemicals, rehabilitation/replacement of equipment, employee costs, and California State regulatory compliance mandates. Funding is also needed to replace significant portions of the City’s aging water and sewer infrastructure network. This is necessary if the City is to continue to provide reliable service to its customers and comply with the requirements of various regulatory agencies including the replacement of the City’s main water pump station built over 85 years ago, miles of pipeline replacement, and installation of a biosolids processing system to divert organic material from the landfill to comply with California Senate Bill 1383. A new commercial rate for businesses is being introduced to provide hauling and disposal services for source separated food waste; a new requirement imposed by the State of California through passage of Senate Bill 1383. If approved, the proposed rate increases will become effective January 1, 2024.
Utility rate increases are subject to Proposition 218 requirements approved by California voters in 1996. The City must: (1) inform property owners of the new rates and proposed rate increase(s), (2) clearly demonstrate the basis on which the rates are calculated, and (3) hold a public hearing at least 45 days after public notification. If written protests are received representing a majority of properties receiving the utility service, the proposed rate increase(s) will not be imposed. If a sufficient number of protests are not received, the rate increases may be approved by the CityCouncil.
NOTICEISHEREBYGIVENthattheCity ofReddingwillhold a publichearing onTuesday,November 7, 2023, at 6 p.m., in the City Council Chambers at 777 Cypress Avenue, Redding, California, to consider adoption of new rates and proposed increases to existing rates for Water, Wastewater, and Solid Waste Utility services.
Reasons for the proposed rates are described in more detail below. For additional information, please visit the City of Redding Utility website at:www.reddingutilities.com.
Notice of Public Hearing
On Proposed Rate Increases for
Water, Wastewater, and Solid Waste Utilities
Packet Pg. 566 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) The property owner and the utility account holder (ratepayer) subject to the proposed rate changes may submit a protest against any or all of the proposed rate changes by filing a written protest with the City Clerk at or before the time set for the public hearing.
Please be advised: (1) More than one notice may be sent for a single property because the City sends notices to both property owners and ratepayers. (2) Property owners may receive more than one copy of this notice if they own multiple properties and/or have multiple City of Redding utility accounts. (3) While the City may receive multiple protests for a given property, only one protest can be counted for each property. (4) Not all utility services apply to each property, for example, some residents receive water from other providers. (5) A Public Hearing and Majority Protest is not an election, there are no “yes” and “no” votes.
If you object to the proposed increase in utility rates for a property you own and/or a utility service you receive, you may submit a written protest against any or all of the proposed rate increases by providing the following information: (1) the property address and/or Shasta County Assessor’s Parcel Number where the service is received; (2) the utility account holder or property owner’s printed name and signature; and (3) listing the proposed utility increase(s) being protested. Then place your written protest notice in an envelope and submit to the City of Redding-City Clerk, 3rd floor, at 777 Cypress Avenue, Redding, California via one of the following methods: (1) U.S. mail, (2) hand-deliver to the City Clerk’s Office, or (3) in person prior to the close of the public hearing. In order for the written protest to be counted as a valid protest, it must contain all the information noted above and be received (not postmarked) by the City Clerk no later than the end of the public hearing noticed above on November 7, 2023.
Please be advised, if the proposed utility rates do not pass, services may be scaled back or modified accordingly to continue operations and comply with regulatory requirements.
If you are satisfied with the level of utility services provided and do not object to the proposed rate increases to fund the operation, maintenance, and replacement costs relating to providing Water, Wastewater, and Solid Waste utilities services, you do not need to take any action.
You may prepare a written protest as instructed above or use this form to protest the proposed utility rate increases.
I, ___________________________________, protest the proposed rate increase(s) for the following utilities:
(Print first and last name, must be legible)
_______________________________________________________________________________________ (Print Water, Wastewater, and/or Solid Waste)
Property Address or Assessor’s Parcel Number: ______________________________________________ (Please Print legibly)
Please sign here: __________________________________________ If you wish to use this form as your written protest, fill out and hand deliver or mail in a stamped envelope to:
City of Redding, City Clerk, 777 Cypress Avenue, Redding, CA, 96001 Packet Pg. 567 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Proposed rates for Solid Waste services:
The proposed single-family residential rates for the various size solid waste carts are depicted in Table 1.
Proposed new rates for collection of source-separated food waste from commercial customers are depicted in Table 2. In addition to the rate tables shown below, commercial accounts have a recommended increase of same percentages shown in Table 1 for each fiscal year. Because of the diverse nature of commercial collection, such as varying number of pickup days per week, size of containers, etc., it is not practical to list all charges and estimated rate changes for this Utility in this rate hearing notice. However, those charges are listed online at www.reddingutilities.com and are available by calling customer service at (530) 224-6201.
TABLE 1 – Proposed Rates for Residential Solid Waste Services 2024 2025 2026 2027
Annual Rate increases as shown in Financial Plan: 15.00% 8.00% 8.00% 6.00% Residential Wheeled Cart Monthly Rate 1
45-Gal Container $25.30 $25.90 $27.97 $30.21 $32.02
64-Gal Container $26.45 $28.34 $30.61 $33.06 $35.04
96-Gal Container $28.30 $32.59 $35.20 $38.02 $40.30
Additional Green Waste Container $4.00 $4.60 $4.97 $5.37 $5.69 Landfill Monitoring
SOLID WASTE RATE SCHEDULE Current Rates
(2023)
($0.22/month - no increases)
Proposed Rates
1. Residential Service includes trash, recycling, and green waste containers.
New Proposed Rates for Commercial Solid Waste Food Waste Services A new commercial rate for businesses is being introduced to provide hauling and disposal services for source separated food waste; a new requirement imposed by the State of California through passage of Senate Bill 1383.
If approved, the proposed rate increases will become effective January 1, 2024. This portion of the proposed increase does not apply to residential customers.
TABLE 2 – New Proposed Rates for Commercial Solid Waste Food Waste Services Container Type 1 2 3 4 5 6
45-Gal Container $29.91 $59.82 $89.72 $119.63 $149.54 $179.45 64-Gal Container $33.49 $66.98 $100.46 $133.95 $167.44 $200.93 1-Yard Container $187.74 $374.22 $560.71 $747.19 $933.67 $1,120.15 2-Yard Container $314.10 $625.95 $937.81 $1,249.67 $1,561.52 $1,873.38 Proposed Commercial Rates
Monthly Rates by Number of Pickups Per Week 2024 Food Waste Rate Schedule Packet Pg. 568 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Proposed rates for Water and Wastewater services:
Water and wastewater rates vary by size of water meter and type of wastewater effluent (i.e., rates are higher for restaurants and similar “high-strength” users). The complete schedule of rate increases under consideration is shown in Tables 3 and 4.
TABLE 3 – Proposed Rates for Water Services
2024 2025 2026 2027
12%/18%* 6.50% 6.50% 6.50%
Fixed Service Charge - Based on Meter Size
* SFR 5/8 and 3/4 inch $24.92 $27.92 $29.73 $31.67 $33.73 3/4 inch $33.30 $39.41 $41.97 $44.70 $47.60
1 inch $50.08 $62.38 $66.44 $70.76 $75.36
1.5 inch $92.01 $119.82 $127.61 $135.91 $144.74
2 inch $142.32 $188.75 $201.02 $214.08 $228.00
3 inch $276.50 $372.55 $396.77 $422.56 $450.03
4 inch $427.45 $579.33 $616.99 $657.10 $699.81
6 inch $846.76 $1,153.72 $1,228.72 $1,308.58 $1,393.64
8 inch $1,349.93 $1,842.99 $1,962.79 $2,090.37 $2,226.24 10 inch N/A $4,829.82 $5,143.76 $5,478.10 $5,834.18
Commodity Charges for All Water Consumed per CCF
Uniform Rate $1.59 $1.88 $2.00 $2.13 $2.27
* Single Family Residents (SFR) Meters are 12% Increase, Commodity Charge is 18% Increase.
Larger Meter Fixed Charges Percent Increases Vary.
CCF = Hundred Cubic Feet (748 gallons)
Monthly Fixed Service Charge - Standard Meters:
Current Recommended Rates
Rates
Proposed Annual Rate Increases
Water Rate Schedule
TABLE 4 – Proposed Rates for Wastewater Services
2024 2025 2026 2027
Proposed Annual Rate increases : 5.00% 5.00% 4.00% 4.00% Monthly Service Charges:
Single Family Dwelling ($/residence) $64.17 $67.38 $70.75 $73.58 $76.52 Multi Family Dwelling ($/unit) $47.49 $49.86 $52.35 $54.44 $56.62 Standard Commercial billed monthly ($/ccf) $6.59 $6.92 $7.27 $7.56 $7.86 Standard Commercial calculated annually ($/# HE) 2 $64.17 $67.38 $70.75 $73.58 $76.52 Commercial Food Preparation billed monthly ($/ccf) $13.20 $13.86 $14.55 $15.13 $15.74 Commercial Food Preparation calculated annually ($/# HE) $128.36 $134.78 $141.52 $147.18 $153.07
SEWER RATE SCHEDULE
Current
Rates
Proposed Rates
HE = Household Equivalent
Packet Pg. 569 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Exhibit B
Solid Waste Overview
The City of Redding collects refuse and recycling, produces recycled product, transports to the landfill, and buries waste for over 30,000 residential and commercial customers. In terms of tonnage of material handled, the Solid Waste Utility handled the following volumes in Fiscal Year 2022-2023.
Activity Weight 2022-2023
Waste collected 67,171
Self-haul waste 24,702
Household Hazardous 283
Recyclables 12,918
Green waste 17,125
Other waste-sweeping 1,131
Total Tons 123,330
The City also operates the Richard W. Curry West Central Landfill (West Central Landfill) for Shasta County and buried a total of 164,053 tons of waste from both jurisdictions. To help meet diversion requirements, the City operates a Household Hazardous Waste Facility, compost operation, vehicle tire recycling, mixed recyclables collection operation, green-waste collection operation, recycling drop-off center, reuse facility, used motor oil and filter recycling program, and mattress recycling program; pulls recyclables off the floor of the Transfer Station; and operates an appliance program for residents. The Solid Waste Utility is experiencing increased operating costs associated with state regulations related to: (1) stormwater pollution prevention, (2) commercial and multi-family recycling, (3) air quality regulations related to diesel emissions, and (4) mandatory organics recycling and diversion.
Existing Rates
Because it serves a wide variety of customers, the Utility has 19 different service rates for different types and sizes of containers and the number of pickups per week. Built into these service rates are the costs of operation of the particular service and the shared cost of operation of other services, such as street sweeping, litter abatement and shopping cart removal, street maintenance (as a result of heavy truck use), storm drain waste disposal, and charges from other agencies or departments.
These costs of operation vary by size of container, type of container, and frequency of collections (in terms of the volume of material handled, the residential and nonresidential sectors are about equal). To keep rates as low as possible and provide beneficial programs, the e-waste diversion and household hazardous waste programs receive funds from a supplemental charge to users of the West Central Landfill.
Also included within the Solid Waste Utility rate is a Benton Landfill monitoring charge. This is a state requirement mandating funds to monitor and maintain the closed and inactive City owned landfill. The monitoring surcharges that affect all customers are not proposed to be changed.
Proposed Rates
The attached 10-Year Financial Plan (Figure SW-1) summarizes the current Solid Waste Utility budget and projects what the expenditures and revenues will be over the next 10 years. The Plan Packet Pg. 570 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) also shows the recommended increases necessary for the next four years and possible increases for the remaining six years of the 10-year projection. The public hearing will only address the rates for the first four years of the 10-Year Financial Plan.
The following table shows the existing rate and what is proposed for a typical single-family home:
Cost Increases and Programs
Tipping-fee (landfill charge) increases, truck and equipment costs, fuel costs to operate vehicles and equipment, planned transfer station facility expansion and maintenance projects, charge for street maintenance, customer service costs, labor and contract costs, health and maintenance costs, increased recycling programs and monitoring, and other charges have all increased for the Utility.
The net effect is that the Utility increase rates over the next four years to cover projected cost increases, and prevent a rapid reduction of the reserve and its depletion. The proposed rates will allow the reserve to be maintained at a level that declines sharply in the beginning but then meets or exceeds 90 days cash on hand for the remainder of the Plan. The effects of Assembly Bill 1826 (a bill that is a mandate to divert organics), Assembly Bill 341 (a bill to increase diversion from 50 percent to 75 percent by increasing the focus on commercial and multi-family dwellings) and Senate Bill 1383 (a bill to reduce disposal of organics in landfills including source separated food waste and increase edible food recovery) have resulted in upward cost pressure. Additionally, a new commercial fee is proposed in order to address the costs associated with fully implementing a new program that meets the regulatory requirements of collecting source separated food waste and diverting it form landfills.
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Annual Rate increases as shown in Financial Plan: 15.00% 8.00% 8.00% 6.00% 4.00% Residential Wheeled Cart Monthly Rate 1
45-Gal Container $25.30 $25.90 $27.97 $30.21 $32.02 $33.30 64-Gal Container $26.45 $28.34 $30.61 $33.06 $35.04 $36.44 96-Gal Container $28.30 $32.59 $35.20 $38.02 $40.30 $41.91 Additional Green Waste Container $4.00 $4.60 $4.97 $5.37 $5.69 $5.91 Landfill Monitoring
SOLID WASTE RATE SCHEDULE Current
Rates (22/23)
Proposed Rates
($0.22/month - no increases)
Summary of 2023/24 Commercial CONTAINERS (Scheduled & Unscheduled):
1 2 3 4 5 6
Commercial Bin 1.0 $92.20 $183.56 $274.91 $366.27 $457.63 $548.99 Adjustments for Foodwaste Collection
Adjusted 1 CY Rates for Foodwaste Collection: $187.74 $374.22 $560.71 $747.19 $933.67 $1,120.15 % Increase over Non-Foodwaste 103.6% 103.9% 104.0% 104.0% 104.0% 104.0% Front Load Compactor 2.0 $208.17 $414.66 $621.15 $827.64 $1,034.13 $1,240.62 Adjustments for Foodwaste Collection
Adjusted 2 CY Rates for Foodwaste Collection: $314.10 $625.95 $937.81 $1,249.67 $1,561.52 $1,873.38 % Increase over Non-Foodwaste 50.9% 51.0% 51.0% 51.0% 51.0% 51.0% Container Type 1
Size
(CY)
Monthly Rates for 2 CY Foodwaste by No. of Pickups Per Week Summary of 2023/24 48- and 65-gal. Carts for Foodwaste:
Foodwaste 48-Gal. Cart $25.90 $29.91 $59.82 $89.72 $119.63 $149.54 $179.45 Foodwaste 65-Gal. Cart $28.34 $33.49 $66.98 $100.46 $133.95 $167.44 $200.93 Monthly Rates for 48- and 65-Gal. Foodwaste Carts
by No. of Pickups Per Week
Container Type 1 1 2 3 4 6
Proposed
Resid. Rate
5 Packet Pg. 571 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) The Utility expects to expand some current programs and investigate the addition of new programs during the next several years. However, the Utility will need to increase public education, continue to improve route efficiency, add equipment and resources to meet mandatory diversion requirements, and monitor staffing levels in order to facilitate daily routes and collections. The Utility uses revenues from the sale of recyclables to offset a portion of the cost of collection and diversion of recyclables and organics from the landfill. The State has continued to increase emphasis on recycling and mandate the implementation of organics diversion programs as part of the plan to reduce greenhouse gas emissions.
Attachments:
Figure SW-1 Proposed Ten-Year Financial Plan with recommended rates Packet Pg. 572 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Figure SW
-1
Budget
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 Sources of Solid Waste Funds
Rate Revenues:
Residential Rate Revenue 9,942,670 $ 10,011,595 $ 10,081,039 $ 10,148,617 $ 10,216,299 $ 10,282,633 $ 10,348,034 $ 10,412,088 $ 10,475,313 $ 10,537,087 $ 10,598,239 $ Commercial Rate Revenue 7,691,470 7,744,789 7,798,510 7,850,787 7,903,144 7,954,459 8,005,052 8,054,603 8,103,513 8,151,300 8,198,606 Roll-Off Rate Revenue 2,633,490 2,651,746 2,670,139 2,688,039 2,705,965 2,723,535 2,740,858 2,757,824 2,774,570 2,790,932 2,807,129 Non-Rate Revenues:
Transfer Station Gate Fees 2,385,000 2,761,764 3,003,394 3,265,409 3,484,417 3,647,323 3,817,342 3,994,610 4,179,621 4,330,397 4,486,194 Recycling Materials Revenues 992,901 999,784 1,006,719 1,013,468 1,020,227 1,026,851 1,033,382 1,039,779 1,046,092 1,052,261 1,058,368 Misc. Other Revenues2 163,600 182,010 193,892 206,754 217,538 225,608 234,018 242,775 251,903 259,373 267,084 Total Sources of Funds 23,809,131 $ 24,351,689 $ 24,753,693 $ 25,173,073 $ 25,547,590 $ 25,860,409 $ 26,178,687 $ 26,501,679 $ 26,831,013 $ 27,121,350 $ 27,415,620 $ Uses of Solid Waste Funds
Operating Expenses:
Solid Waste Administration 3,536,040 $ 3,657,090 $ 3,504,070 $ 3,623,001 $ 3,746,262 $ 3,874,052 $ 4,006,513 $ 4,143,816 $ 4,286,081 $ 4,433,548 $ 4,586,410 $ Residential Collection Expenses 3,509,660 3,992,580 4,088,820 4,220,440 4,356,330 4,496,650 4,641,560 4,791,240 4,945,850 5,105,560 5,270,580 Commercial Collection Expenses 3,388,110 3,684,650 4,047,680 4,180,860 4,318,430 4,460,570 4,607,420 4,759,190 4,916,010 5,078,090 5,245,600 Roll-Off Collection Expenses 1,528,340 1,645,300 1,721,680 1,703,400 1,761,580 1,821,790 1,884,060 1,948,520 2,015,200 2,084,220 2,155,670 Resource Recovery Expenses 5,928,560 7,711,910 8,003,440 8,258,820 8,590,070 8,935,300 9,295,100 9,670,150 10,061,100 10,468,680 10,893,630 Transfer Station Expenses 4,149,480 4,452,820 4,703,820 4,251,956 4,375,517 4,503,758 4,636,839 4,774,930 4,940,410 5,111,780 5,289,270 Hazardous Household Waste Expenses 751,240 814,100 909,000 836,480 869,710 904,360 940,410 977,940 1,017,040 1,057,770 1,100,110 Street Sweeping Expenses 1,387,470 1,498,310 1,782,480 1,759,870 1,841,400 1,929,600 1,946,540 1,977,470 1,912,420 1,945,420 1,979,540 Subtotal: Operating Expenses 24,178,900 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 29,859,299 $ 30,926,080 $ 31,958,442 $ 33,043,256 $ 34,094,111 $ 35,285,068 $ 36,520,810 $ Other Expenditures:
Future Debt Service - - - - 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Future Expansion Projects - - - - - - 3,000,000 3,000,000 Rate-Funded Capital Expenses 3 1,658,350 - - - - - - - - - - Subtotal: Other Expenditures 1,658,350 $ - $ - $ - $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 5,000,000 $ 5,000,000 $ Total Uses of Solid Waste Funds 25,837,250 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 31,859,299 $ 32,926,080 $ 33,958,442 $ 35,043,256 $ 36,094,111 $ 40,285,068 $ 41,520,810 $ plus: Revenue from Rate Increases - 1,530,610 4,973,025 7,061,865 8,785,023 10,034,172 11,345,671 12,721,517 14,164,851 15,320,214 16,519,517 Annual Surplus/(Deficit) After Rate Increases ($2,028,119) ($1,574,462) $965,728 $3,400,111 $2,473,315 $2,968,501 $3,565,915 $4,179,940 $4,901,753 $2,156,495 $2,414,327 Net Revenue Req't. (Total Uses less Non-Rate Revenue) 11,970,789 $ 23,513,202 $ 24,556,985 $ 24,349,197 $ 27,137,117 $ 28,026,298 $ 28,873,700 $ 29,766,092 $ 30,616,494 $ 34,643,037 $ 35,709,164 $ Total Rate Revenue After Rate Increases 20,267,630 $ 21,938,741 $ 25,522,713 $ 27,749,308 $ 29,610,432 $ 30,994,799 $ 32,439,615 $ 33,946,032 $ 35,518,247 $ 36,799,532 $ 38,123,491 $ Projected Annual Rate Increase 4 0.00% 15.00% 8.00% 8.00% 6.00% 4.00% 4.00% 4.00% 4.00% 3.00% 3.00%Cumulative Increase from Annual Rate Increases 0.00% 15.00% 24.20% 34.14% 42.18% 47.87% 53.79% 59.94% 66.34% 71.33% 76.47% RATE REVENUE REQUIREMENTS SUMMARY 1
Projected
Packet Pg. 573 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Exhibit C
Wastewater Utility Overview
The Wastewater Utility funds and operates two regional wastewater treatment plants. It also manages over 442 miles of sewer collection line and 18 lift stations serving approximately 39,380 connections. The utility’s rates do not fund maintenance of lateral lines from the sewer line to a building. The wastewater treatment plants process the wastewater and discharge to the Sacramento River. Of the wastewater collected and treated by the utility, about 70 percent is from residential customers and 30 percent is from nonresidential or commercial customers.
Peak hydraulic loads for the Wastewater Utility are just the opposite of those of the Water Utility due to the intrusion of storm water into the sewer system. The terms for this are inflow and infiltration (I&I) and there is an ongoing effort of the utility to reduce the flow due to this. For illustrative purposes, in the summer, peak dry weather flows to the two treatment plants are about 10 million gallons per day (MGD) in a normal year. In the winter, peak wet weather flows can reach 50 MGD or a five-fold increase. In order to prevent overflows into the river, the utility must be able to process these flows.
Like the other utilities, the Wastewater Utility has been affected by cost increases for continued environmental and regulatory mandates, materials and chemicals, fuel, salaries, health and retirement costs, and capital construction. These pressures are projected to continue into the foreseeable future.
One of the key challenges for the wastewater system is I&I. As the physical integrity of a sewer system deteriorates over time, I&I increases. The resulting hydraulic loads reduce available capacity, increase treatment costs, and increase the likelihood of sanitary sewer overflows (SSO’s).
Some of the City’s sewer lines are more than 100 years old. The Capital Improvement Plan for the next ten years includes a significant pipe replacement program, pipe and manhole rehabilitation projects, and storm drain improvements.
Another significant challenge for the wastewater utility is the regulatory driven requirements dealing with the diversion of organics from landfill disposal. Currently, biosolids from both treatment plants are disposed of at the West Central Landfill. California Senate Bill 1383 has strict requirements regarding the disposal of organic material, which is requiring the Solid Waste utility to find a diversion program for food waste. These additions have driven the adoption of new technologies and other biosolid management practices. One such project is the new Pyrolysis process at the Clear Creek plant, which is currently under construction. Moving forward with the reception of food waste at the wastewater plant will require the expansion of the Pyrolysis system to accept additional biosolids loading.
The Clear Creek Wastewater Treatment Plant was built in 1966 and expanded in 1979 to treat a peak wet weather flow of 16.2 MGD. In 2014, an $83 million rehabilitation and expansion project was completed that increased the peak wet weather capacity to 40 MGD. The Stillwater Wastewater Treatment Plant was put into operation in 1991 to treat a peak flow of 8.7 MGD. A $13 million rehabilitation and expansion project was also completed in 2014 that increased the peak wet weather capacity to 14.4 MGD. The majority of the funding for the plant rehabilitations and expansions was from low-interest loans from the State. Both projects were funded by a combination of connection fees paid by new development and monthly rates.
The table below shows planned capital projects of more than $500,000 planned in the next five years for the Wastewater Utility along with the projected cost and the source of funding. “Rates” Packet Pg. 574 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) represent the portion of funding from monthly sewer rates. “Fees” are revenue from the connection fees paid by new development.
Wastewater Utility Capital Improvements 2024-2030
Capital Projects Cost Funding Source
Inflow and Infiltration Reduction $10,260,823 Rates 100% West Side Interceptor Phase III $10,000,000 Fees 100%
6-8" Line Repair/Replacement $24,250,881 Rates 100%
Lift Station Improvements $1,812,000 Rates 100%
Miscellaneous Treatment Plant Improvements $2,725,000 Rates 100% Magnolia Sewer Phase II $7,000,000 Rates 100%
Lake Redding Interceptor I $4,975,000 Rates 91% and Fees 9% Biosolids Pyrolysis $19,000,000 Rates 100%
Mercury Drive Sewer $1,450,000 Rates 100%
Clear Creek Wastewater Treatment Plant $4,079,146 Rates 100% Stillwater Wastewater Treatment Plant $2,719,524 Rates 100% Sludge Lagoons & Drying Beds $8,500,000 Rates 100%
Buenaventura Sewer $5,200,000 Rates 91% and Fees 9%
Sulphur Creek $2,931,430 Fees 100%
Clear Creek Pond Upgrades $3,413,095 Rates 75% and Fees 25% Rates fund a significant portion of the costs associated with maintaining the sanitary sewer system.
Whether or not the City will be able to accomplish all of these projects depends on the number of new connections, rates, and the actual construction costs. If an identified capital improvement cannot be funded, it will be deferred until funding is available and will then compete with other new needs.
Proposed Rates
Wastewater rates are predicated on the expense to maintain and expand the system needed to collect, transport, and treat wastewater. The flow produced by a typical single-family residence is expressed as a “household equivalent” (HE) and is the basis for rate charges. For example, a single-family household is expressed as one HE, and one HE is equivalent to 240 gallons per day of wastewater. An apartment is slightly less, and commercial, industrial, and public uses are calculated based on the number of household equivalents they generate each day. Industrial users have not only the volume of discharge calculated, but the strength of that discharge as well. Some commercial customers also have a rate that reflects the strength of discharge. The strength of the wastewater is measured as the amount of solids and organics in the wastewater. For example, typical food preparation facilities (restaurants) will discharge higher strength wastewater than a retail store.
Packet Pg. 575 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) The following table shows the recommended rate increases for all customer classes:
Comparison of Existing to Proposed Rates
HE=Household Equivalent
The attached Ten-Year Financial Plan, Figure WW-1, summarizes the current Wastewater Utility budget and future expenditures and revenues with the recommended increases. The public hearing only addresses the rates for the first four years of the Ten-Year Financial Plan.
It is the recommendation of the Wastewater Utility that the proposed rate increases are approved to fund the ongoing maintenance and upkeep of the sanitary sewer system for the benefit of citizens of the City of Redding.
Attachments:
Figure WW-1 Proposed Ten-Year Financial Plan with recommended rates 2024 2025 2026 2027
Proposed Annual Rate increases : 5.00% 5.00% 4.00% 4.00% Monthly Service Charges:
Single Family Dwelling ($/residence) $64.17 $67.38 $70.75 $73.58 $76.52 Multi Family Dwelling ($/unit) $47.49 $49.86 $52.35 $54.44 $56.62 Standard Commercial billed monthly ($/ccf) $6.59 $6.92 $7.27 $7.56 $7.86 Standard Commercial calculated annually ($/# HE) $64.17 $67.38 $70.75 $73.58 $76.52 Commercial Food Preparation billed monthly ($/ccf) $13.20 $13.86 $14.55 $15.13 $15.74 Commercial Food Preparation calculated annually ($/# HE) $128.36 $134.78 $141.52 $147.18 $153.07
SEWER RATE SCHEDULE
Current
Rates
Proposed Rates
Packet Pg. 576 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Figure WW-1
Budget Budget
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 Sources of Wastewater Funds
Rate Revenue Under Prevailing Rates 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ Non-Rate Revenues 78,537 78,357 81,842 85,499 89,335 93,359 97,582 102,012 106,660 111,538 116,657 122,029 Interest Earnings (in O&M, Capital and Debt reserves)2 479,699 - - - - - - - - - - - Total Sources of Funds 34,618,762 $ 34,138,883 $ 34,142,368 $ 34,146,025 $ 34,149,861 $ 34,153,885 $ 34,158,108 $ 34,162,538 $ 34,167,186 $ 34,172,064 $ 34,177,183 $ 34,182,555 $ Uses of Wastewater Funds
Operating Expenses (Divisions less Interdepart. Charges):
WW - Industrial Pretreatment (Division 870) 835,347 $ 938,850 $ 988,253 $ 1,037,665 $ 1,089,548 $ 1,144,026 $ 1,201,227 $ 1,261,288 $ 1,324,353 $ 1,390,571 $ 1,460,099 $ 1,533,104 $ WW - System-Administration (Division 871) 586,049 $ 593,790 $ 618,836 $ 649,778 $ 682,267 $ 716,380 $ 752,199 $ 789,809 $ 829,299 $ 870,764 $ 914,303 $ 960,018 $ WW - Stillwater Treatment Plant (Division 872) 2,366,627 $ 2,478,850 $ 2,575,743 $ 2,704,530 $ 2,839,756 $ 2,981,744 $ 3,130,831 $ 3,287,373 $ 3,451,741 $ 3,624,328 $ 3,805,545 $ 3,995,822 $ WW - Collection Systems (Division 874) 2,559,357 $ 2,740,780 $ 2,858,444 $ 3,001,366 $ 3,151,435 $ 3,309,006 $ 3,474,457 $ 3,648,179 $ 3,830,588 $ 4,022,118 $ 4,223,224 $ 4,434,385 $ WW - Clear Creek Treatment Plant (Division 875) 3,706,410 $ 3,764,390 $ 3,831,825 $ 3,986,916 $ 4,148,681 $ 4,317,423 $ 4,493,457 $ 4,677,114 $ 4,868,740 $ 5,068,698 $ 5,277,367 $ 5,495,146 $ Interdepartmental Charges 6,048,612 $ 6,852,280 $ 7,194,894 $ 7,554,639 $ 7,932,371 $ 8,328,989 $ 8,745,439 $ 9,182,711 $ 9,641,846 $ 10,123,938 $ 10,630,135 $ 11,161,642 $ Subtotal: Operating Expenses 16,102,402 $ 17,368,940 $ 18,067,994 $ 18,934,893 $ 19,844,058 $ 20,797,568 $ 21,797,609 $ 22,846,474 $ 23,946,568 $ 25,100,417 $ 26,310,673 $ 27,580,117 $ Other Expenditures:
Existing Debt Service (funded by rates)3 10,173,269 $ 7,290,393 $ 6,171,887 $ 6,172,887 $ 6,174,637 $ 6,171,637 $ 6,173,637 $ 5,899,897 $ 5,583,637 $ 3,239,750 $ 3,051,250 $ 2,490,250 $ New Debt Service (to be funded by rates) - - - - - - - - - - - - Rate-Funded Capital Expenses 22,745,832 13,422,336 8,397,640 13,932,691 9,603,251 11,779,649 11,345,220 13,418,858 17,658,450 21,262,825 24,357,673 20,147,007 Subtotal: Other Expenditures 32,919,101 $ 20,712,728 $ 14,569,527 $ 20,105,577 $ 15,777,888 $ 17,951,285 $ 17,518,857 $ 19,318,755 $ 23,242,087 $ 24,502,575 $ 27,408,923 $ 22,637,257 $ Total Uses of Wastewater Funds 49,021,504 $ 38,081,668 $ 32,637,521 $ 39,040,471 $ 35,621,945 $ 38,748,853 $ 39,316,466 $ 42,165,228 $ 47,188,655 $ 49,602,993 $ 53,719,596 $ 50,217,374 $ plus: Revenue from Rate Increases - 851,513 3,491,204 4,993,273 6,555,425 8,180,063 9,869,687 11,626,895 13,454,392 15,354,989 17,331,609 19,387,295 Annual Surplus/(Deficit) (14,402,742) $ (3,091,272) $ 4,996,051 $ 98,827 $ 5,083,341 $ 3,585,095 $ 4,711,328 $ 3,624,205 $ 432,924 $ (75,939) $ (2,210,804) $ 3,352,476 $ Net Revenue Req't. (Total Uses less Non-Rate Revenue) 48,463,268 $ 38,003,311 $ 32,555,679 $ 38,954,972 $ 35,532,610 $ 38,655,494 $ 39,218,884 $ 42,063,216 $ 47,081,994 $ 49,491,454 $ 53,602,939 $ 50,095,345 $ Total Rate Revenue After Rate Increases 34,060,526 $ 34,912,039 $ 37,551,730 $ 39,053,799 $ 40,615,951 $ 42,240,589 $ 43,930,213 $ 45,687,421 $ 47,514,918 $ 49,415,515 $ 51,392,135 $ 53,447,821 $ Projected Annual Rate Increase 0.0% 5.00% 5.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Cumulative Increase from Annual Rate Increases 0.00% 5.00% 10.25% 14.66% 19.25% 24.02% 28.98% 34.14% 39.50% 45.08% 50.88% 56.92% Coverage After Rate Increase (0.42) 0.58 1.81 1.02 1.82 1.58 1.76 1.61 1.08 0.98 0.28 2.35
1. Revenue and expenses are per the City's Proforma (Source file: Redding_WW proforma Budget Version 2023 - FINAL VERSIONv.xlsx2. Refers to the City's budget for interest earnings in FY 2022/23. For all future years, interest earnings are calculated here based on the City's Pooled Cash Interest Rate. Source file: REDDING_ Pooled Cash Interest Rate Dec 2018.xlsx .3. Debt service that cannot be fully paid through the Impact Fee Reserve Fund has been added to Debt Service to be funded by rates.
RATE REVENUE REQUIREMENTS SUMMARY1 Projected
Packet Pg. 577 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Exhibit D
Water Utility Overview
The City of Redding Water Utility provides water service to more than 88,000 people in what the United States Bureau of Reclamation (Reclamation) recognizes as the Redding Water Service Area. This approved service area includes nearly all of the incorporated area of the City of Redding and a small area of the County in northwest of Redding. It does not include portions of northeast Redding served by the Bella Vista Water District and the southwest served by Centerville Community Service District. The annual demand of nearly 25,000-acre feet of water is largely met from the 27,000 plus acre feet of historic and post Shasta Dam water contracts. This surface water comes from Whiskeytown Reservoir via the Spring Creek conduit and the Sacramento River via Pump Station No. 1 (PS-1) located along the south side of the Sacramento River Trail. In addition, the City utilizes and has the capacity to draw nearly 11,000 acre-feet of groundwater from 17 wells located in the Enterprise area and southwest portions of town.
Water System Infrastructure
The infrastructure required to meet the demands can be divided into two key areas including:
Treatment - The City’s water treatment infrastructure consists of the Foothill Water Treatment Plant, Buckeye Water Treatment Plant, 17 wells located in the Enterprise and Cascade areas and the supporting facilities. The Foothill Treatment Plant is the system’s workhorse treating 40 percent of the City’s water which is pumped from PS-1 located along the Sacramento River. The Buckeye Treatment Plant, which is located west of Keswick Lake along the Spring Creek Conduit, meets approximately 30 percent of the water demand for the City. The 17 Enterprise and Cascade wells meet the remaining 30 percent of Redding’s water demand.
Distribution - Following treatment, the City’s water is stored in 12 reservoirs throughout Redding and supplied to the utility’s customers through over 560 miles of water main and 30,500 service connections. In addition, there are 11 booster pumps located throughout the city to maintain water pressure within the various pressure zones.
The 2023 Water Master Plan presents a review of the City’s water system and provides planning direction for the system through 2045, including water demand forecasts, required water supply, and recommended capital improvements to needed to maintain and grow the system.
Water System Preservation Needs
Much of the existing water system infrastructure is dated and in need of preservation efforts to continue meeting Redding water demands. Key areas of need are summarized as follows:
• Treatment - following are key water treatment preservation-related facility’s needs:
• Foothill Water Treatment Plant - The Foothill Treatment Plant was initially constructed in 1920, went through a significant upgrade in 1979 that added additional capacity, and has had several smaller upgrades since to meet growing population and regulatory standards. In 2011, PACE Engineering prepared a Facilities Plan that provided a number of preservation related recommendations including a new control building and replacement of the supervisory control and data acquisition (SCADA) Packet Pg. 578 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) systems to better automate and ensure continued plant operation, electrical system upgrade, construction of a second clarifier to allow for adequate storage, replacement of the aging flocculator basins, and other various piping upgrades. The total cost of remaining preservation related improvements is estimated at $16 million by 2035. • Enterprise Wells - The Enterprise wells in particular have identified concerns with arsenic at two wells and iron/manganese at several other wells. It is recommended that wells with high arsenic levels remain offline as the resolution of the arsenic issues is substantial and water supply needs for the City can be met without these wells producing water. It is recommended, based on continued community interest in resolving the iron/manganese issue, that well head treatment at EW12, the highest producing well, be implemented to blend and dilute constituent levels to below their respective MCLs. It is also noted that the utility has made relatively significant operational changes with very positive results that have minimized the concerns including implementation of a more aggressive water main flushing program as well as “pushing” treated water from the Buckeye Treatment plant to east Redding allowing reduced water use from iron/manganese problematic wells.
• Pump Station No. 1 - PS-1 was constructed in 1937 on the south side of the Sacramento River Trail just upstream of the Diestelhorst Bridge. The intake is influenced dramatically by river elevation levels dictated by downstream Anderson Cottonwood Irrigation District’s diversion program. It has been a target of concern with the National Oceanic and Atmosphere Administration (NOAA) Fisheries due to potential pump impacts on salmon migration in the Sacramento River. Jacobs Engineering updated the feasibility study in 2022 and has begun the environmental clearance and engineering design process for a new pump station at a location upriver. Construction of a new pump station upstream is estimated at $40 million within the next 6 years. • Distribution - following are key preservation recommendations concerning water distribution related facilities:
• Storage – Additional storage is necessary under existing conditions in the Hill 900 and Buckeye Pressure Zones to meet standard storage criteria for the combination of Equalization, Fire Service, and Emergency Storage. New 2.0MG and 2.0MG storage facilities are recommended to address the current conditions and provide for ultimate build-out and replacement of aging facilities. Additional pump station upgradesto meet ultimate build-out demands in the Buckeye and Cascade Pressure Zones, and replacement of older reservoirs is also identified.
• Pipe Replacement - As noted above, the City has over 560 miles of water main with much of it cast iron or steel, typically 50 to 80 years old. In addition, the city has grown to where demands are being met in some of the pipes by increasing velocities which shorten the life of the pipe. Water pipe failures have become relatively common as highlighted by several failures of water lines in the last ten years. It is recommended to expand the City’s pipe replacement program to meet pipe age, material, and existing capacity issues at between $5 and $20 million per year over the next 10 years.
Water System Future Growth Needs
The City of Redding’s water demands will continue to increase as the population in Redding Packet Pg. 579 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) grows. Growth rates, developed by Itron Inc. for the Redding Electric Utility, project growth rates at 0.7 percent thru 2027. Other factors that may affect water demand include State water conservation mandates and California Green Building Code requirements. The master plan analysis reviewed projected needs in the Short Term (five-year outlook), a 10- and 20-year outlook, and Ultimate Build Out (50 to 70 years). Following are highlights of the projected water infrastructure projected needs:
• Treatment - No additional growth-related capacity needs are identified in the City’s treatment facilities over the next 10 years. It is expected that two additional wells will need to be added to the system, or two wells rehabilitated and reactivated, in the next 10 years to meet projected demands.
• Distribution - Additional water main capacity will be needed to distribute water to areas of Redding where growth is being considered and capacity is not available or old, high velocity mains need replacement and larger pipes are recommended to meet additional demands. Additional water main capacity to meet east Redding demands for Buckeye water is currently under construction with a new 24” water main in Lake Boulevard.
The table below shows planned capital projects of more than $1,000,000 for the Water Utility for the next five years, along with the projected cost and the source of funding. “Rates” represent the portion of funding from monthly water rates. “Fees” are revenue from the connection fees paid by new development:
Water Utility Capital Improvement Projects 2024-2030
Capital Projects Cost Funding Source
Water Main Replacement $36,000,000 Rates 100%
Pump Station No. 1 Relocation $40,000,000 Rates 100%
Foothill WTP Control Building & SCADA $5,000,000 Rates 100% Buckeye Reservoir Booster Pump Station $1,500,000 Rates 100% Cypress Booster Pump Station $5,000,000 Rates 100%
S. Bonnyview & Railroad Pump Station Upgrades $2,000,000 Rates 100% Ranchettes 12” Water Main $1,500,000 Rates 100%
Buckeye Reservoir - New 2MG $5,000,000 Rates 100%
Hill 900 Reservoir Rehab and New 2MG $6,000,000 Rates 100% New Enterprise Well $4,300,000 Rates 100%
Rates fund a significant portion of the costs associated with maintaining the water system. Whether or not the City will be able to accomplish all of these projects depends on the number of new connections, rates, and the actual construction costs. If an identified capital improvement cannot be funded, it will be deferred until funding is available and will then compete with other new needs.
Packet Pg. 580 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Proposed Rates
Water rates are predicated on the expense to maintain and expand the system needed to treat, pump, transport, and distribute water. The proposed water rate schedule includes a fixed meter charge to cover the majority of the cost of delivering water to the customer, as well as a variable (commodity) charge based on the actual amount of water consumed. Water consumption is measured in units of one hundred cubic feet (ccf), which is equal to 748 gallons. The following table shows the recommended rate increases for all customer classes:
Comparison of Existing to Proposed Rates
A typical single-family residence, using 21 ccf per month, would be as follows:
Schedule Existing 2024 2025 2026 2027
Fixed Meter Charge +
21 ccf Commodity
Charge
$58.31 $67.39 $71.72 $76.39 $81.38
The attached Ten-Year Financial Plan, Figure W-1 summarizes the current Water Utility budget and future expenditures and revenues with the recommended increases. The public hearing only addresses the rates for the first four years of the Ten-Year Financial Plan. As discussed earlier in this report, the recommended rate increases affect both the service and the commodity charge.
It is the recommendation of the Water Utility that the proposed rate increases are approved to fund the ongoing maintenance and upkeep of the water system for the benefit of citizens of the City of Redding.
Attachments:
Figure W-1 Proposed Ten-Year Financial Plan with recommended rates Proposed - Rate Design (40% Fixed / 60% Variable)
2024 2025 2026 2027
12%/18%* 6.50% 6.50% 6.50%
Fixed Service Charge
5/8 inch $24.92 $27.91 $29.72 $31.66 $33.71
3/4 inch $33.30 $39.41 $41.97 $44.70 $47.61
1 inch $50.08 $62.42 $66.48 $70.80 $75.40
1.5 inch $92.01 $119.93 $127.73 $136.03 $144.87
2 inch $142.32 $188.95 $201.23 $214.31 $228.24
3 inch $276.50 $372.99 $397.24 $423.06 $450.56
4 inch $427.45 $580.04 $617.75 $657.90 $700.66
6 inch $846.76 $1,155.18 $1,230.27 $1,310.23 $1,395.40
8 inch $1,349.93 $1,845.35 $1,965.29 $2,093.04 $2,229.08 10 inch N/A $4,836.06 $5,150.41 $5,485.18 $5,841.72
Commodity Charges for All Water Consumed
Uniform Rate $1.59 $1.88 $2.00 $2.13 $2.27
* Single Family Residents (SFR) 5/8" Meters are 12% Increase, Commodity Charge is 18% Increase.
Larger Meter Fixed Charges Percent Increases Vary.
Monthly Fixed Service Charge - Standard Meters:
Current Recommended Rates
Rates
Projected Increase in Rate Revenue per Financial Plan:
Water Rate Schedule
Packet Pg. 581 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Figure W-1
Actuals 2 Budget
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 Sources of Water Funds
Rate Revenue Under Prevailing Rates 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ Non-Rate Revenue 462,610 413,460 422,222 433,290 444,674 456,374 468,402 480,766 493,479 506,548 519,988 533,805 Interest Earnings 3 - - 585,903 450,983 404,016 351,247 296,817 174,458 136,437 182,449 249,035 153,732 Total Sources of Funds 28,990,270 $ 28,941,120 $ 29,535,785 $ 29,411,933 $ 29,376,350 $ 29,335,281 $ 29,292,879 $ 29,182,885 $ 29,157,576 $ 29,216,657 $ 29,296,683 $ 29,215,197 $ Uses of Water Funds
Operating Expenses:
WTR - GENERAL & ADMIN (Division 861) 5,985,490 $ 2,960,880 $ 3,081,358 $ 3,206,830 $ 3,337,508 $ 3,473,610 $ 3,615,367 $ 3,763,018 $ 3,916,812 $ 4,077,009 $ 4,243,880 $ 4,417,708 $ WTR - PRODUCTION (Division 862) - 1,770,000 1,790,000 988,374 1,017,617 1,047,726 1,078,725 1,110,641 1,143,502 1,177,335 1,212,169 1,248,034 WATER TREATMENT (Division 863) 7,843,000 8,156,726 8,458,108 8,771,312 9,096,827 9,435,167 9,786,866 10,302,484 10,690,102 11,093,204 11,512,444 WTR - DISTRIBUTION (Division 864) 7,117,590 8,048,500 8,376,744 8,730,130 9,098,809 9,483,458 9,884,785 10,303,528 10,740,461 11,196,391 11,672,163 12,168,659 Subtotal: Operating Expenses 13,103,080 $ 20,622,380 $ 21,404,828 $ 21,383,442 $ 22,225,245 $ 23,101,621 $ 24,014,044 $ 24,964,054 $ 26,103,258 $ 27,140,836 $ 28,221,415 $ 29,346,845 $ Other Expenditures:
Existing Debt Service 733,200 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Future Debt Service (SRF Loan) - - - 2,016,471 2,016,471 2,016,471 2,016,471 2,016,471 2,016,471 2,016,471 2,016,471 2,016,471 Rate-Funded Capital Expenses 15,744,888 - 7,200,000 8,200,000 9,200,000 7,930,387 11,965,719 19,531,752 15,165,375 15,247,226 27,314,713 16,005,566 Subtotal: Other Expenditures 16,478,088 $ - $ 7,200,000 $ 10,216,471 $ 11,216,471 $ 9,946,858 $ 13,982,191 $ 21,548,223 $ 17,181,846 $ 17,263,697 $ 29,331,184 $ 18,022,038 $ Total Uses of Water Funds 29,581,168 $ 20,622,380 $ 28,604,828 $ 31,599,913 $ 33,441,716 $ 33,048,478 $ 37,996,234 $ 46,512,277 $ 43,285,105 $ 44,404,533 $ 57,552,600 $ 47,368,882 $ Increase/Decrease to Reserves (Before Rate Increases) 14,298,890 $ 8,318,740 $ 930,957 $ (2,187,980) $ (4,065,366) $ (3,713,197) $ (8,703,355) $ (17,329,392) $ (14,127,529) $ (15,187,876) $ (28,255,917) $ (18,153,685) $ Plus: Revenue from Rate Increases 4 - 927,149 3,842,823 5,974,339 8,259,402 10,155,065 12,157,021 14,270,269 16,501,150 18,854,765 21,338,781 23,958,097Increase/Decrease to Reserves (After Rate Increases) (590,898) $ 9,245,889 $ 4,773,780 $ 3,786,359 $ 4,194,036 $ 6,441,868 $ 3,453,665 $ (3,059,124) $ 2,373,622 $ 3,666,889 $ (6,917,136) $ 5,804,412 $ Net Revenue Req't. (Total Uses less Non-Rate Revenue) 29,118,558 $ 20,208,920 $ 27,596,703 $ 30,715,640 $ 32,593,026 $ 32,240,857 $ 37,231,015 $ 45,857,052 $ 42,655,189 $ 43,715,536 $ 56,783,577 $ 46,681,345 $ Total Rate Revenue After Rate Increases 28,527,660 $ 29,454,809 $ 32,370,483 $ 34,501,999 $ 36,787,062 $ 38,682,725 $ 40,684,681 $ 42,797,929 $ 45,028,810 $ 47,382,425 $ 49,866,441 $ 52,485,757 $ Projected Annual Rate Revenue Increase 0.00% 12%/18%* 6.50% 6.50% 6.50% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Cumulative Increase from Annual Revenue Increases 0.00% 12%/18% 13.42% 20.79% 28.65% 35.08% 41.83% 48.92% 56.37% 64.19% 72.40% 81.02% Debt Coverage Without Rate Increase 5 21.66 N/A N/A 3.98 3.54 3.09 2.61 2.09 1.51 1.02 0.53 (0.06)Debt Coverage With Rate Increase 5 21.66 N/A N/A 6.94 7.64 8.12 8.64 9.16 9.69 10.37 11.11 11.81 * Single Family Residents (SFR) 5/8" fixed meter charge is 12% and all variable rates are 18%. Larger meter fixed charges percent increases vary.
RATE REVENUE REQUIREMENTS SUMMARY 1 Projected Projected (4-Year Rate Period) Packet Pg. 582 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 583 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 584 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 585 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 586 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 587 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 588 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 589 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Packet Pg. 590 Attachment: Previous Staff Report (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) 2023 Proposed Solid Waste, Wastewater,
and Water Utility Rate Updates
SEPTEMBER 2023
Packet Pg. 591 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Rate Update Working Team
Public Works Staff
Consultant –
Public Works Utilities Rate Advisory Group Support
• Janice Cunningham – Real-Estate Consultant
• Cindy Fisher – VP Cornerstone Bank
• Trisha Funk – Financial Advisor
• Sami Kader – Business Owner/Professional Engineer
• Larry Olmstead – President & CEO of United Way of Northern California • Cameron Tiraterra – Business/Restaurant Owner
Packet Pg. 592 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Rate Update Process
Master Plans, Utility Budgets and 10-Year Financial Plans - Cost of Service Analysis and Draft Rate Models
Advisory Group Meetings
• Six meetings – Utility Overview, Rates 101, Cost of Service Analysis reviews, Financial Plans, Input and Recommendations
Website, News and Social Media Posts
Open House – August 31, 2023
Packet Pg. 593 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Utility Rate Study
Packet Pg. 594 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Demand in the City
Fiscal Year 2022-23
33,530 Customer Accounts – 93% total residential: single and multi-family accounts Annual Waste Wheeler Pickups
Over 1.5 million grey (garbage) can pickups per year
Total over 3 million cans annually including Green Waste & Recycling Total Waste Collected: 93,004 Tons plus 31,335 Tons of Recyclables (Diversion) Annual commercial pickups drop boxes/containers: 193,000 1,534 Curb miles of street sweeping (832 commercial miles and 702 residential miles)
Number of vehicles entering facility: 121,600
Packet Pg. 595 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Historical Solid Waste Service Demands
Packet Pg. 596 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Operational Staff
93 Employees (includes West Central Landfill) 1 Deputy Director 2 Public Works Supervisors 5 Administrative Staff 11 Customer Service Representatives/Clerks 60 Collection Drivers 5 Mechanics (inc. Building & Facility and Equipment) 4 Hazardous Waste Specialists 5 Heavy Equipment Operators Packet Pg. 597 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Operational Fleet
Fleet Vehicles (104 pieces) 38 Collection Vehicles 20 Residential 9 Commercial 4 Roll Off 5 Transfer trucks and 5 trailers 23 Administrative and support vehicles 15 Pieces of “Yellow” Iron Grinder, Trommel, Shredder 26 Pieces at West Central Packet Pg. 598 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Financial Overview
2022-23
Revenue - $24.4 Million
Rate Revenue - $19.9 Million
Fee Revenue (transfer station fees, etc.)
- $2.9 Million
Other Revenue (recycling, compost
sales, etc.) - $1.6 Million
Expense - $26.8 Million
Capital
Improvement
$1.2 Million
Equipment $1.9
Million
Billing, Building
Maint, IT, Fleet,
ILMS, GIS,City
Support, ET
$5.9 Million
O&M Equipment,
Materials, Supplies
$8.1 Million
Personnel and
Benefits
$9.6 Million
Packet Pg. 599 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Rate Pressures
Regulatory Requirements
SB 1383 - Methane Gas Reduction
AB 341 & 1594 – Mandatory Commercial Organics Recycling Trash Amendment
Residential Growth
Approx. 1,000 new homes constructed past 5 years
17% increase (14,754 tons) of trash hauled to landfill over last 5 years Facility Growth
Transfer Station facility upgrades and expansion
Packet Pg. 600 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Proposed Rates
2024 2025 2026 2027
Proposed Annual Rate increases: 15.00% 8.00% 8.00% 6.00% Residential Wheeled Cart Monthly Rate 1
45-Gal Container $25.30 $25.90 $27.97 $30.21 $32.02
64-Gal Container $26.45 $28.34 $30.61 $33.06 $35.04
96-Gal Container $28.30 $32.59 $35.20 $38.02 $40.30
Additional Green Waste Container $4.00 $4.60 $4.97 $5.37 $5.69 Landfill Monitoring
SOLID WASTE RATE SCHEDULE Current Rates
(2023)
Proposed Rates
($0.22/month - no increases)
1. Res i denti a l Servi ce i ncl udes tra s h, recycl i ng, a nd green wa s te conta i ners .
Packet Pg. 601 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Proposed Rates
Cost of Service Based – Number of Lifts/Volume/Container Commercial – Between 11 and 13 percent increase the first year 13 container types (Front Load Compacters and Commercial Containers) – Pickup Options
Roll-Off – 12.2 percent increase the first year
Packet Pg. 602 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Proposed NEW Rates
Container Type 1 2 3 4 5 6
45-Gal Container $29.91 $59.82 $89.72 $119.63 $149.54 $179.45 64-Gal Container $33.49 $66.98 $100.46 $133.95 $167.44 $200.93 1-Yard Container $187.74 $374.22 $560.71 $747.19 $933.67 $1,120.15 2-Yard Container $314.10 $625.95 $937.81 $1,249.67 $1,561.52 $1,873.38 2024 Food Waste Rate Schedule Proposed Commercial Rates Monthly Rates by Number of Pickups Per Week
Packet Pg. 603 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Revenue Requirements
Packet Pg. 604 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Key Drivers to Increase
Keep up with Inflation
Regulatory Impacts
Increased services
Residential growth
Contract labor increases
Facility Expansion (Capital)
Packet Pg. 605 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste Nor Cal Comparison
Packet Pg. 606 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Solid Waste 10 City Comparison
Packet Pg. 607 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Utility Rate Study
Packet Pg. 608 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Utility Demand
Wastewater Service Area
Demand Expressed as Household Equivalents (HEs) HE = 240 Gallons per day Redding Service Area – 43,324 HEs 54% Single Family 21% Multiple Family 25% Commercial/Industrial/Public Facility Packet Pg. 609 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Collection and
Treatment System
Collection System
39,382 Connections – 92 Percent Residential
442 miles of pipe and 18 lift stations
Pretreatment Program – Food service, industrial, commercial, vehicle cleaning Treatment
Clear Creek Wastewater Treatment Plant – 9.4 MGD (dry) to 40 MGD (wet) Stillwater Wastewater Treatment Plant – 3.6 MGD (dry) to 14.4 MGD (wet) Packet Pg. 610 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Utility Staffing
Collection System
Supervisor, 15 collection maintenance staff, 2 temporary positions Lift Stations, Pipe Viewing, Cleaning, Construction-Repairs Two Treatment Plants
2 Supervisors, 12 operators, 3 laboratory technicians, 3 electrical technicians, 3 facility mechanics, 1 maintenance worker
Wastewater Utility Manager
Industrial Waste Pretreatment
Supervisor, 3 industrial waste analysts
Wastewater Compliance
1 Compliance coordinator
Packet Pg. 611 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Utility System Needs
Collection System
Pipe replacement - $68 million (2024-2029)
Magnolia Area (phase 2 & 3) - $15 million
Westside Interceptor - $10 million
Treatment Plants
Biosolids (SB 1383)
SWWTP Facultative Sludge Lagoons - $8 million
CCWWTP Pyrolysis (phase 2, 3 & 4) - $19 million
Packet Pg. 612 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Financial Overview
2022-23
Revenue - $35 Million
Rate Revenue - $33 Million
Fee Revenue - $1.7 Million
Interest - $700,000
Expense - $32 Million
System
Improvement
$10 Million
Long-term
Construction Loans
$4.3 Million Billing, Building
Maint, IT, Fleet,
ILMS, GIS,City
Support, ET
$6.7 Million
O&M
Equipment,
Chemicals,
Testing,
Vehicles
$4.7 Million
Personnel and
Benefits
$6.2 Million
Packet Pg. 613 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Utility Rate Pressures
Regulatory
Biosolids Handling (SB 1383)
Third Party Lawsuits (CSPA, River Watch)
Maintenance levels (pipe viewing, cleaning, repairs)
PFAS Monitoring (future treatment?)
Land Use – 60 square miles, 90,000 population
Large collection system (442 miles of pipe, 18 lift stations) Two treatment plants
Aging system (dating back to 1800s)
Packet Pg. 614 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Proposed Rates
2024 2025 2026 2027
Proposed Annual Rate increases : 5.00% 5.00% 4.00% 4.00% Monthly Service Charges:
Single Family Dwelling ($/residence) $64.17 $67.38 $70.75 $73.58 $76.52 Multi Family Dwelling ($/unit) $47.49 $49.86 $52.35 $54.44 $56.62 Standard Commercial billed monthly ($/ccf) $6.59 $6.92 $7.27 $7.56 $7.86 Standard Commercial calculated annually ($/# HE) $64.17 $67.38 $70.75 $73.58 $76.52 Commercial Food Preparation billed monthly ($/ccf) $13.20 $13.86 $14.55 $15.13 $15.74 Commercial Food Preparation calculated annually ($/# HE) $128.36 $134.78 $141.52 $147.18 $153.07
SEWER RATE SCHEDULE
Current
Rates
Proposed Rates
Packet Pg. 615 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Revenue Requirements
Packet Pg. 616 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Key Drivers to Increase
Keep up with Inflation
Regulatory Impacts (Biosolids)
Maintain Collection System – Pipe Replacement
Meet Debt Service on Treatment Plant Upgrades
Packet Pg. 617 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater Nor Cal Rate Comparisons
Packet Pg. 618 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Wastewater 10-City Rate Comparisons
Packet Pg. 619 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility Rate Study
Packet Pg. 620 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility Demand
Water Service Area ~30,000 Customers City Limits +/- Water Supply (~41,000 acre feet) Sac River – 21,000 AF Spring Creek Conduit (Whiskeytown) – 6,140 AF ACID Contract – 4,000 AF 17 Wells - ~10,000 AF Water Use (~23,700 acre feet*) Sac River – 10,100 AF Spring Creek Conduit (Whiskeytown) – 6,100 AF
ACID Contract – 500 AF
17 Wells - 7,000 AF * Varies Packet Pg. 621 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility Historical Demand
Packet Pg. 622 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility Historical Demand
Packet Pg. 623 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Treatment and
Distribution System
Treatment Foothill Water Treatment Plant
– 42%
Buckeye Water Treatment Plant – 27%
17 Groundwater Wells – 31%
11 Pump Stations and 12 Reservoirs
Distribution System 560 miles of water main 30,600 service connections 4,500 fire hydrants 14,000 valves 3,500 back flow assemblies Packet Pg. 624 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility Staffing
Distribution System Supervisor, 17 water distribution staff, 4 temporary positions
Treatment System Supervisor, 8 operators, 2 electrical technicians, 1 facility mechanic, 1 maintenance worker, and 1
temporary maintenance worker
Water Utility Manager
Water Conservation and Compliance 1 Water Conservation Specialist Packet Pg. 625 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Financial Overview
2022-23
Revenue - $31 Million
Rate Revenue - $29 Million
Fee Revenue - $1.5 Million
Interest - $274,000
Expense - $37 Million*
* Expenses exceed Revenue due to
Reserve Funded Capital Expenses System
Improvement
$16.7 Million
Billing, Building
Maint, IT, Fleet,
ILMS, GIS,City
Support, ET
$7.1 Million
O&M
Equipment,
Chemicals,
Testing,
Vehicles
$7.8 Million
Personnel and Benefits
$5.7 Million
Packet Pg. 626 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility System Needs
Distribution System Pipe replacement
- $41 million (2024-2029)
Athens Ave. Area Watermain Replacement - $5 million
North/Willis/Magnolia Area Watermain Replacement- $5 million Treatment System Pump House 1 - $40 million Buckeye Water Treatment Plant Electrical/Control Upgrades - $1 million Foothill Water Treatment Plant New Control Building - $5 million Replace Pump Station 2 - $3 million Cypress Booster Pump Station - $5 million Packet Pg. 627 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility System Needs
Aging pipe replacement program
recommendation per Master Plan
Packet Pg. 628 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Utility System Needs
Water Main Breaks by Pipe Material
2012 through 2022 (430+)
Packet Pg. 629 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Proposed Rates
2024 2025 2026 2027
12%/18%* 6.50% 6.50% 6.50%
Fixed Service Charge - Based on Meter Size
* SFR 5/8 and 3/4 inch $24.92 $27.92 $29.73 $31.67 $33.73 3/4 inch $33.30 $39.41 $41.97 $44.70 $47.60
1 inch $50.08 $62.38 $66.44 $70.76 $75.36
1.5 inch $92.01 $119.82 $127.61 $135.91 $144.74
2 inch $142.32 $188.75 $201.02 $214.08 $228.00
3 inch $276.50 $372.55 $396.77 $422.56 $450.03
4 inch $427.45 $579.33 $616.99 $657.10 $699.81
6 inch $846.76 $1,153.72 $1,228.72 $1,308.58 $1,393.64
8 inch $1,349.93 $1,842.99 $1,962.79 $2,090.37 $2,226.24 10 inch N/A $4,829.82 $5,143.76 $5,478.10 $5,834.18
Commodity Charges for All Water Consumed per CCF
Uniform Rate $1.59 $1.88 $2.00 $2.13 $2.27
* Single Family Residents (SFR) Meters are 12% Increase, Commodity Charge is 18% Increase.
Larger Meter Fixed Charges Percent Increases Vary.
CCF = Hundred Cubic Feet (748 gallons)
Current Recommended Rates
Rates
Projected Increase in Rate Revenue per Financial Plan:
Water Rate Schedule
Monthly Fixed Service Charge - Standard Meters:
Packet Pg. 630 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Revenue Requirements
Packet Pg. 631 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Revenue Requirements
Pump House 1 Project
Packet Pg. 632 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Key Drivers to Increase
Keep up with Inflation
Maintain Distribution System – Pipe Replacement Program Treatment Plant Upgrades
Pump House 1 Replacement
Regulatory Impacts
SB 606 & AB 1668 – Urban Water Use Targets/Conservation PFAS & Unregulated Contaminate Monitoring Rule (UCMR) Testing Packet Pg. 633 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Water Bill Comparison
Packet Pg. 634 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Nor Cal Rate Comparisons
Packet Pg. 635 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 10 -City Rate Comparisons
Packet Pg. 636 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Combined Utility Comparisons
Solid Waste, Water, Wastewater
Packet Pg. 637 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Nor Cal Rate Comparisons
Packet Pg. 638 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 10 -City Rate Comparisons
Packet Pg. 639 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 Next Steps
Council Action
Approve Proposition 218 Notification of Rate Increases (Protest Notices) Set Public Hearing for November 7, 2023
Mailing of Notices
Hold Public Hearing and Tally Protests (November 7, 2023) Packet Pg. 640 Attachment: 2023 Proposed Solid Waste, Wastewater, and WW Council Presentation 9-5-23 nbsgov.com
Water, Wastewater and Solid Waste Utility Rate Study
Final Report
September 2023
Packet Pg. 641 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
TABLE OF CONTENTS
1. Introduction ...................................................................................................................1
1.1 Purpose......................................................................................................................1
1.2 Overview of the Study...............................................................................................1
2. Water Rate Study ...........................................................................................................5
2.1 Key Water Rate Study Issues.....................................................................................5
2.2 Financial Plan.............................................................................................................5
2.3 Cost-of-Service Analysis ............................................................................................8
2.4 Characteristics of Water Customers by Customer Class...........................................9
2.5 Rate Design Analysis................................................................................................11
2.6 Proposed Water Rates ............................................................................................13
2.7 Comparison of Current and Proposed Water Bills..................................................13
3. Wastewater Rate Study ................................................................................................ 17
3.1 Key Wastewater Rate Study Issues.........................................................................17
3.2 Financial Plan...........................................................................................................17
3.3 Cost-of-Service Analysis ..........................................................................................19
3.4 Rate Design Analysis................................................................................................19
3.5 Proposed Wastewater Rates...................................................................................19
3.6 Comparison of Current and Proposed Wastewater Bills ........................................20
4. Solid Waste Rate Study................................................................................................. 24
4.1 Key Solid Waste Rate Study Issues..........................................................................24
4.2 Financial Plan...........................................................................................................24
4.3 Cost-of-Service Analysis ..........................................................................................25
4.4 Rate Design Analysis................................................................................................28 Packet Pg. 642 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
5. Recommendations and Next Steps ......................................................................................36
5.1 Consultant Recommendations................................................................................36
5.2 Next steps................................................................................................................36
5.3 NBS’ Principal Assumptions and Considerations....................................................36 Technical Appendices...................................................................................................................37 Utility Nexus for Storm Drain Maintenance Funding………………………………………………………..38 Appendix A. Water Rate Study Tables and Figures................................................................38 Appendix B. Wastewater Rate Study Tables and Figures ......................................................39 Appendix C. Solid Waste Rate Study Tables and Figures.......................................................40 Packet Pg. 643 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
TABLE OF FIGURES
Figure 1. Primary Components of a Rate Study ..........................................................................................1 Figure 2. Summary of Water Revenue Requirements .................................................................................7 Figure 3. Summary of Primary Water Reserve Funds..................................................................................7 Figure 4. Allocation Percentages of Revenue Requirements........................................................................9 Figure 5. Allocated Net Revenue Requirements .........................................................................................9 Figure 6. Water Consumption by Customer Class.......................................................................................9 Figure 7. Peaking Factors by Customer Class............................................................................................10 Figure 8. Number of Meters by Customer Class........................................................................................11 Figure 9. Hydraulic Capacity Factors........................................................................................................11 Figure 10. Calculation of Fixed Service Charges........................................................................................12 Figure 11. Uniform Tier Rates for CY 2024 ...............................................................................................12 Figure 12. Current and Proposed Water Rates.........................................................................................13 Figure 13. Monthly Water Bill Comparison for Residential Customers .......................................................14 Figure 14. Monthly Water Bill Comparison for Commercial Customers......................................................14 Figure 15. Residential Water Bills – 4-Years .............................................................................................15 Figure 16. Residential Bills Comparison for Similar Communities...............................................................16 Figure 17. Summary of Wastewater Revenue Requirements.....................................................................18 Figure 18. Summary of Wastewater Reserve Funds..................................................................................18 Figure 19. Current vs. Proposed Wastewater Rates..................................................................................20 Figure 20. Single-Family Residential Wastewater Bill Comparison .............................................................20 Figure 21. Multi-Family Residential Wastewater Bill Comparison..............................................................21 Figure 22. Commercial Wastewater Bill Comparison ................................................................................21 Figure 23. Commercial Food Prep Wastewater Bill Comparison ................................................................22 Figure 24. Regional Wastewater Bill Comparison .....................................................................................23 Figure 25. Summary of Solid Waste Revenue Requirements .....................................................................25 Figure 26. Summary of Solid Waste Reserve Funds...................................................................................25 Figure 27. Development of the Solid Waste Tonnage Allocation Factors....................................................26 Figure 28. Development of the Accounts/Pickups Per Week Allocation Factors..........................................26 Figure 29. Development of the Combined Allocation Factors....................................................................27 Figure 30. Allocation of Revenue Requirements by Customer Class...........................................................27 Figure 31. Summary of Revenue Requirements by Customer Class............................................................28 Figure 32. Summary of Current vs. Proposed Revenue Requirements by Customer Class............................28 Figure 33. Summary of Proposed Residential Container Rates ..................................................................29 Figure 34. Current and Proposed Solid Waste Rates – Residential Customers ............................................30 Figure 35. Monthly Single-Family Solid Waste Bill Comparison with Other Communities............................30 Figure 36. Summary of Calculated Unit Costs for Commercial Services......................................................32 Figure 37. Summary of Commercial Service Rates....................................................................................33 Figure 38. Summary of Roll-Off Service Costs...........................................................................................34 Figure 39. Summary of Roll-Off Service Rates...........................................................................................34 Figure 40. Monthly Rates for 1 and 2 CY Food Waste by No. of Pickups Per Week......................................35 Figure 41. Monthly Rates for 48 and 65 Gallon Food Waste by No. of Pickups Per Week ............................35 Packet Pg. 644 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 1
1. Introduction
1.1 Purpose
The City of Redding (City) retained NBS to conduct a comprehensive update of the utility rate studies for its water, wastewater and solid waste enterprise funds. The City’s primary objectives for this study included meeting projected revenue requirements, addressing the rising costs of providing services, adequately funding capital improvements and increased operating costs, and complying with the legal requirements of Proposition 218 (Prop 218) (i.e., California Constitution Article XIII D, Section 6). The City’s broader objectives in this study also included maintaining reasonable reserve fund levels and ensuring continued revenue stability.
The rates resulting from this study were developed in a manner that is consistent with industry standard cost-of-service principles and the City’s historical approach to rate design. In addition to documenting the rate study methodology, this report is provided with the intent to assist the City in its continuing effort to maintain transparent communications with the residents and community it serves.
In developing new rates for the City’s enterprise funds, NBS worked cooperatively with City staff in selecting appropriate rate alternatives that address the City’s goals and objectives. Based on input provided by City staff, NBS proposes the rates summarized in this report. The City Council (Council) has the final authority regarding the adoption of the proposed rates and whether to proceed with the Prop 218 approval process.
1.2 Overview of the Study
Comprehensive rate studies, such as this one, typically include three components: (1) preparation of a financial plan that identifies the net revenue requirements for the utility; (2) analysis of the cost to serve each customer class, and (3) the rate structure design. These steps are shown in Figure 1.
Figure 1. Primary Components of a Rate Study
1 FINANCIAL
PLAN 2
COST-OFSERVICE
ANALYSIS
3 RATE DESIGN
ANALYSIS
Compares current sources and
uses of funds and determines the
revenue needed from rates and
projects rate adjustments.
Proportionally allocates revenue
requirements to the customer
classes in compliance with industry
standards and State Law.
Considers the rate structure that
best meets the City’s need to collect
rate revenue from various types of
customers.
These three study components are intended to follow industry standards and reflect the fundamental principles of cost-of-service rate making embodied in the American Water Works Association’s (AWWA) Packet Pg. 645 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 2
Principles of Water Rates, Fees, and Charges,
1 also referred to as Manual M1, and the Water Environment Federation’s Financing and Charges for Wastewater Systems (Manual of Practice No. 27).2 Rate studies also address requirements under Prop 218 that rates not exceed the cost of providing the service and are proportionate to the cost of providing service for all customers. The three steps shown in Figure 1 also represent the order in which they were performed in this study. In summary, NBS projected revenues and expenditures, developed net revenue requirements, performed cost-of-service rate analyses, and developed new water, wastewater and solid waste rates for the City using this approach.
The City provided NBS with the data necessary to conduct the study, including historical, current, and projected revenues and expenditures, number of customer accounts, and water consumption data along with other operational and capital cost information.
The following sections in this report present an overview of the methodologies, assumptions, and data used along with the financial plans and rates developed. Detailed tables and figures documenting the development of the proposed rates are provided in the Appendices.
FINANCIAL PLAN
As a part of the rate study, NBS projected revenues and expenditures on a cash-basis for the next 10 years for each of the utilities. The amount of rate revenue required from rates includes maintaining reserves at recommended levels and is known as the net revenue requirement. If current rate revenue falls short of the net revenue requirement, rate adjustments – or more accurately, adjustments in the total revenue collected from rates are needed. An overview of the methodologies, assumptions, and data used in developing the financial plans and proposed rates are outlined in this report. 3 COST-OF-SERVICE ANALYSIS
The basic purpose of the cost-of-service analysis (COSA) is to fairly and equitably allocate costs to customer classes. The cost-of-service analysis consists of two basic components: (1) the classification of expenses, and (2) the allocation of costs to customer classes. For example, a key task in the “classification” of the water revenue requirements divides costs into the following categories:
• Commodity-related costs
• Capacity-related costs
• Customer service-related costs
For the sewer utility, the normal classification of sewer revenue requirements uses the following categories:
• Flow-Related Costs
• Strength- Related Costs:
o Biochemical Oxygen Demand (BOD) and
o Total Suspended Solids (TSS)
• Customer-Related Costs
1 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, Manual M1, American Water Works Association (AWWA), 7
th Edition, 2017.
2 Financing and Charges for Wastewater Systems, Manual of Practice No. 27, Water Environment Federation, 4th Edition, 2018. 3 The complete financial plans are available in the Appendices.
Packet Pg. 646 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 3
For the solid waste utility, the normal classification of sewer revenue requirements uses the following categories:
• Residential-Related costs
• Commercial-Related costs
• Roll-Off-Related costs
• Street Sweeping costs
Further details are discussed below and documented in the Appendices.
RATE DESIGN ANALYSIS
During the rate design phase of the study, NBS and City staff worked together to develop rate alternatives that would meet the City’s objectives. It is important for the City to send proper price signals to its customers about the actual cost of providing service. This objective is typically addressed through both the magnitude of the rate adjustments and the rate structure design. In other words, both the amount of revenue collected and the way in which the revenue is collected from customers are important.
Several criteria are typically considered in setting rates and developing sound rate structures. The fundamentals of this process have been well documented in rate-setting manuals, such as AWWA’s Manual M1 and the Principles of Public Utility Rates,
4 which outlines pricing policies, theories, and economic concepts along with various rate designs. The following are some of the attributes of a sound rate structure:
• Rates should be easy to understand from the customer’s perspective. • Rates should be easy to administer from the utility’s perspective. • Rates should be equitable and non-discriminating (i.e., cost-based). • Rates should promote the efficient allocation of the resource. • There should be continuity in the rate making philosophy over time. • Rates should address other utility policies (e.g., conservation and economic development). • Rates should provide month-to-month and year-to-year revenue stability.
RATE STRUCTURE TERMINOLOGY
NBS and City staff considered basic rate design criteria as a part of their review of the rate structure alternatives. One of the most fundamental points in considering rate structures is the relationship between fixed and variable costs. Fixed costs, such as debt service and personnel costs, typically do not vary with the amount of water consumed. In contrast, variable costs, such as the cost of purchased water, chemicals, and electricity, tend to change with the quantity of water sold. Most water and sewer rate structures contain a fixed, or minimum, charge in combination with a volumetric charge, whereas solid waste rates are typically 100 percent fixed.
Fixed Charges – Fixed charges can be called base charges, minimum monthly charges, customer charges, fixed meter charges, etc. Fixed charges for water utilities typically increase by meter size. For example, a customer with a 2-inch meter has a fixed meter charge that is more than five times greater than the typical 4 James C. Bonbright, Albert L. Danielsen, and David R. Kamerschen, Principles of Public Utility Rates, Arlington, VA: Public Utilities Report, Inc., Second Edition, 1988, pp. 383-384.
Packet Pg. 647 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 4
residential customer based on the safe operating capacity of the meter.5Since a large portion of utility costs are typically related to meeting fixed capacity requirements, individual capacity demands are important component in establishing equitable rates for customers.
Variable (Consumption-Based) Charges – In contrast to fixed charges, variable costs, such as purchased water, the cost of electricity used in pumping water, and chemicals for treatment, tend to change with the quantity of water produced or wastewater treated. For a water utility, variable charges are calculated based on a metered consumption per unit price (e.g., per 100 cubic feet, or HCF).
Uniform (Single-Tier) Water Rates – There are significant variations in the basic philosophy of variable charge rate structure alternatives. Under a uniform (single tier) rate structure, the cost per unit does not change with consumption and, therefore, provides a simple and straightforward approach from the customer’s perspective and in terms of the City’s rate administration.
Tiered Water Rates – The 2015 San Juan Capistrano court decision held that water agencies charging tiered rates must demonstrate that they are proportionate to the agency’s costs to serving tiered customers, meaning that they must ensure that tiers are based on appropriately allocated costs.
KEY FINANCIAL ASSUMPTIONS
The following is a summary of the key financial assumptions and capital and operational funding targets used in the analyses and reflect input from City staff.
Funding Capital Projects – The capital improvement costs will be funded with a combination of cash in reserves and the additional revenue generated from the proposed rate increases. The capital projects listed in the financial plan are from the City’s capital improvement program. The analyses assume:
• Capital costs attributable to existing customers are funded using rate revenue and/or reserves. • Capital costs attributable to growth are funded by revenue from the impact fee reserves.
Reserve Targets – The water, wastewater, and solid waste each maintains reserves for operations, capital, and other specific needs, with details for each utility covered in their respective sections of this report.
Inflation and Growth Projections – Assumptions about inflation affecting future revenues and expenses for the study period included the following inflation factors:
• Customer growth is estimated at 0.69% per year.
• Construction Cost Index (CCI) is calculated at 3.42% per year. • Consumer Price Index is calculated at 2.96% per year. • Personnel cost inflation is set at 5.00% annually.
These inflation factors are based on long-term trends; therefore, the City should periodically re-examine these factors to assess the impacts on utility costs and whether projected rate increases will be sufficient for the remainder of the rate adoption period.
Storm Drain Maintenance Funding – Each utility also funds a small share of storm drain maintenance costs.
A description of the cost allocation to each utility is provided in the first page of the Technical Appendices. 5 AWWA, Manual M1, 7th Edition, 2017, pp. 151-152.
Packet Pg. 648 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 5
2. Water Rate Study
2.1 Key Water Rate Study Issues
Some of the specific objectives undertaken in the City’s water rate analysis were:
• Generating sufficient revenue to meet anticipated operating and maintenance costs and fund necessary capital improvement projects for the next four years. • Continuing with a rate design that promotes revenue stability. • Verifying the cost-of-service linkage between the current rate structure and the proposed water rates.
• Maintaining adequate reserve levels to ensure continuity in operations. • Complying with the legal requirements of Prop 218 to ensure the cost of providing service is properly allocated amongst user classifications.
The fixed and volume-based charges were calculated based on the net revenue requirements, number of customer accounts, water consumption and estimated water discharge, and other relevant data provided by the City. As requested by City staff, NBS developed various water rate alternatives that relied on industry standards and cost-of-service principles. The rate alternative ultimately implemented will be the decision of the City Council. The basic components included in this analysis were:
Developing Cost Allocations – The water revenue requirements were “functionalized” into three categories: (1) commodity (or volume-based) costs; (2) fixed capacity costs; and (3) customer service costs.
These functionalized costs were then allocated to customer classes based on various factors, such as water consumption, peaking factors, and number of accounts by meter size.
Determining Revenue Requirements by Customer Class – The total revenue collected from each customer class was determined using the functional costs and allocation factors. For example, volume-related costs are allocated based on the water consumption of each customer class, while customer costs are allocated based on the number of meters. Once the costs are allocated and the net revenue requirements for each customer class are determined, collecting the revenue requirements from each customer class is done in the rate design.
Evaluating Rate Design (What Costs are Included in Fixed vs. Variable Charges) – The revenue requirements for each customer class are collected through a combination of fixed monthly service charges and volumetric rates. Based on direction from City staff, the rates proposed in this report will collect 40% of the rate revenue from the fixed charge and 60% from the variable charges.
2.2 Financial Plan
It is important for municipal utilities to not only collect sufficient revenues every year, but to also maintain reasonable reserves to handle emergencies, fund working capital, maintain a good credit rating, and generally follow sound financial management practices. Rate adjustments are governed by the need to meet operating and capital costs as well as maintain reasonable reserve levels. The current state of the City’s water utility, regarding these objectives, is as follows:
Packet Pg. 649 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 6
Meeting Net Revenue Requirements: For CY 2024 through CY 2027, the projected net revenue requirement (i.e., total annual expenses plus debt service and rate-funded capital costs, less non-rate revenues) for the water system increases from $20.2 million to $32.6 million annually. If no rate increases are implemented, the City is projected to run a $5.0 million deficit in CY 2026 and a $9.8 million deficit in CY 2027.
Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies, such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and unexpected emergencies.
The City’s existing water utility reserves are healthy, and the challenge is to meet future revenue requirements and still maintain adequate reserves. NBS together with City staff have chosen to set the following reserve targets:
• Operating Reserve equal to 33.3% of the Utility’s budgeted annual operating expenses. This reserve target is equal to a 4-month (or 120-day) cash cushion for normal operations. For CY 2024, the operating reserve is estimated to be $6.9 million. This reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures, including fluctuations due to weather patterns, natural billing cycle cash flows, variability in volume-based rates, and changes in the age of receivables. • Capital Rehabilitation and Replacement Reserve equal to 5% minimum of total expenses, which in CY 2024 is approximately $4.9 million. If ratepayers can generate revenues at this level and pace, the City will have reserved a partial cash resource that can be applied toward future capital replacement and rehabilitation needs.
• Pump House 1 Reserve will continue to receive 6% of all fixed and commodity rate revenue which will be used to fund capital improvements related to Pump House 1. This 6% is the City’s established approach to funding the Pump House 1 Reserve. • Debt Reserve is not a requirement of the 2013 Revenue Bonds or the new State Revolving Fund (SRF) loan and, therefore, the City need not hold any reserves for outstanding debt.
Funding Capital Improvement Projects: The City must fund necessary capital improvements to maintain current service levels. City staff has identified roughly $105 million in expected capital expenditures over the next four years (CY 2024 through CY 2027) which is an average of $26.4 million in capital expenditures annually. This rate study assumes the City will be issuing $30 million in revenue bonds in CY 2025. Proceeds from these revenue bonds along with the recommended rate increases, enable the City to fund these capital expenditures without exhausting the existing reserves, although reserves will decrease significantly over the next four years, they are projected to end at about the target reserve level.
Inflation and Growth Projections: Cost inflation and growth assumptions are necessary to project future revenues and expenses for the study period. Customer growth is expected to be nearly 0.69% annually. This factor was used in the analysis for rate revenues while inflation factors, including the Consumer Price Index,6 were used in projecting expenses.
6 Consumer Price Index for all urban consumers in the San Francisco area. Source: Website: https://www.bls.gov/cpi/.
Packet Pg. 650 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 7
Debt Service Coverage Ratios: The City is not required by its bond covenant to maintain a debt service coverage ratio for the outstanding 2013 Revenue Bonds. This analysis assumes that the City will be issuing $30 million in new debt to fund capital projects. However, whether new debt will be needed will depend on the actual delivery of capital projects (i.e., the timing and costs). If new revenue bonds are necessary, the estimated minimum debt service coverage ratio is 1.25.
Figure 2 summarizes the sources and uses of funds, net revenue requirements, and the annual percent adjustments in total rate revenue recommended for the next four years.
Figure 2. Summary of Water Revenue Requirements
Figure 3 summarizes the projected reserve fund balances and reserve targets for the City’s unrestricted funds. A detailed version of the proposed four-year financial plan is included in Appendix A. Water Rate Study Tables and Figures. The tables in the appendix include the revenue requirement, reserve funds, revenue sources, capital improvement costs, and the proposed rate adjustments needed to meet the City’s funding requirements.
Figure 3. Summary of Primary Water Reserve Funds
Actuals
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Sources of Water Funds
Rate Revenue Under Prevailing Rates $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 Other Operating Revenue 462,610 413,460 422,222 433,290 444,674 Interest Earnings - - 585,903 450,983 404,016
Total Sources of Funds $ 28,990,270 $ 28,941,120 $ 29,535,785 $ 29,411,933 $ 29,376,350 Uses of Water Funds
Operating Expenses $ 13,103,080 $ 20,622,380 $ 21,404,828 $ 21,383,442 $ 22,225,245 Debt Service 733,200 - - 2,016,471 2,016,471
Rate-Funded Capital Expenses 15,744,888 - 7,200,000 8,200,000 9,200,000 Total Use of Funds $ 29,581,168 $ 20,622,380 $ 28,604,828 $ 31,599,913 $ 33,441,716 Surplus (Deficiency) before Rate Increase $ (590,898) $ 8,318,740 $ 930,957 $ (2,187,980) $ (4,065,366) Additional Revenue from Rate Increases - 927,149 3,842,823 5,974,339 8,259,402 Surplus (Deficiency) after Rate Increase $ (590,898) $ 9,245,889 $ 4,773,780 $ 3,786,359 $ 4,194,036 Projected Annual Rate Increase 0.00% 6.50% 6.50% 6.50% 6.50% Cumulative Rate Increases 0.00% 6.50% 13.42% 20.79% 28.65% Net Revenue Requirement 1$ 29,118,558 $ 20,208,920 $ 27,596,703 $ 30,715,640 $ 32,593,026 Total Rate Revenue (Current & Add'l.) $ 28,527,660 $ 29,454,809 $ 32,370,483 $ 34,501,999 $ 36,787,062 Debt Coverage With Rate Increase 21.7 N/A N/A 6.9 7.6
1. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amounted needed from water rates Summary of Sources and Uses of Funds and
Net Revenue Requirements
Projected Actuals
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Operating Reserve
Ending Balance $ 3,275,770 $ 6,870,000 $ 7,130,000 $ 7,130,000 $ 7,410,000 Recommended Minimum Target 3,275,770 6,870,000 7,130,000 7,130,000 7,410,000 Capital Rehabilitation & Replacement Reserve
Ending Balance $ 31,912,592 $ 18,876,975 $ 12,900,348 $ 12,735,635 $ 11,924,666 Recommended Minimum Target 4,260,000 4,860,000 5,720,000 6,760,000 7,850,000 Total Ending Balance $ 35,188,362 $ 25,746,975 $ 20,030,348 $ 19,865,635 $ 19,334,666 Total Recommended Minimum Target $ 7,535,770 $ 11,730,000 $ 12,850,000 $ 13,890,000 $ 15,260,000 Ending Reserve Fund Balances and
Recommended Reserve Targets
Projected
Packet Pg. 651 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 8
2.3 Cost-of-Service Analysis
Once the net revenue requirements are determined, the cost-of-service analysis (COSA) proportionately distributes the revenue requirements to each of the customer classes. The COSA consists of two major components: (1) the classification of expenses, and (2) the allocation of costs to each customer class. Costs are classified according to the function they serve. All costs in the City’s budget are allocated to each component of the rate structure in proportion to the level of service required by customers.
The level of service is related to the volume and strength of the water treated, infrastructure capacity, and customer service. These costs are based on allocation factors, such as water consumption, number of meters, and customer class.
FUNCTIONALIZATION AND CLASSIFICATION OF COSTS
Most costs are not typically allocated just to fixed or variable categories but rather allocated to multiple functions of water service. The functionalization and classification process provides the basis for allocating costs to various customer classes based on the cost causation (classification) components described below:
• Commodity-related costs are costs associated with the change in the volume of water produced and delivered. These commonly include the costs of energy related to pumping for transmission and distribution, source of supply, and water quality testing. • Capacity-related costs are costs associated with sizing facilities to meet the maximum, or peak, demand. This includes both operating costs and capital infrastructure costs incurred to accommodate peak system capacity events.
• Customer-related costs are costs associated with having a customer connected to the water system, such as meter reading, postage, billing, and other administrative duties.
The City’s budgeted costs were reviewed and allocated to these cost causation components which are used as the basis for establishing new water rates and translated into fixed and variable charges. Tables in the Appendices show how the City’s expenses were classified and allocated to each cost causation component.
FIXED AND VARIABLE COSTS
Ideally, utilities should recover all fixed costs from fixed charges and all variable costs from volumetric charges. When this is the case, fluctuations in water sales revenues would be directly offset by reductions or increases in variable expenses, which provides greater revenue stability for the utility. However, other factors are often considered when designing water rates, such as community values, water conservation goals, ease of understanding, and ease of administration.7 NBS functionalized the City’s costs into categories that represent fixed and variable costs, resulting in a cost distribution that is approximately 55% fixed and 45% variable (i.e., volumetric). However, the City’s current rates collect revenue from customers in proportions of approximately 40% fixed and 60% variable. City staff agrees with NBS that the current rate design is the preferred rate alternative; it provides continuity for the City’s rate design while also encouraging water conservation. Therefore, the proposed new rates are based on these 40% fixed and 60% variable allocations.
7 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, (M1), AWWA, 7th Edition, 2017, pp. 6 and 96.
Packet Pg. 652 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 9
Figure 4 summarizes how costs are allocated to each cost component and used to establish new water rates. Figure 5 shows the resulting cost allocation to each cost classification component.
Figure 4. Allocation Percentages of Revenue Requirements Figure 5. Allocated Net Revenue Requirements
2.4 Characteristics of Water Customers by Customer Class Customer classes are typically determined by grouping customers with similar demand characteristics into categories that reflect the cost differentials to serve each type of customer. Customer classes are most often identified as single-family, multi-family, commercial, landscape, etc., and the City follows this common methodology. The rates proposed in this report follow a similar structure where the fixed charges within each customer class vary by meter size while all customers are charged a uniform volumetric rate.
The amount of consumption, the peaking factors, and the number of meters by size are used to allocate costs to customer classes. Commodity-related costs are costs associated with the total annual consumption of water by customer class. Figure 6 below summarizes the most recent consumption data by customer class and represents the expected percent of consumption over the four-year rate period.
Fixed Costs
Capacity-Related Costs Fixed 10,451,641 34.4%
Customer-Related Costs Fixed 1,701,142 5.6%
Total Fixed Costs 12,152,783 40.0%
Variable Costs
Commodity-Related Costs Variable $ 18,229,175 60.0%
Net Revenue Requirement $ 30,381,958 100%
Classification Component's
Proposed - Rate Design
(40% Fixed / 60% Variable)
Adjusted Net Revenue
Requirements
Fixed and
Variable Cost
Allocations
CY 2024
Proposed - Rate Design (40% Fixed / 60% Variable) CY 2024 Single Family 58.7% $10,701,426 61.9% $6,464,933 81.2% $1,381,012 $ 18,547,372 61.0% Multi-Family 10.5% 1,921,156 8.3% 871,475 7.4% 125,153 2,917,784 9.6% Commercial 16.0% 2,919,878 13.6% 1,424,491 8.0% 136,357 4,480,726 14.7% Industrial 5.3% 964,350 7.2% 752,531 1.1% 19,521 1,736,402 5.7% Institutional 9.4% 1,722,365 9.0% 938,211 2.3% 39,099 2,699,675 8.9% Total 100.0% $18,229,175 100.0% $10,451,641 100.0% $1,701,142 $ 30,381,958 100.0% Rate Revenue % of Revenue
Rate Revenue
Customer
Related Costs
Customer Class
Commodity-Related Costs
Commodity
Factor Alloc.
Commodity
Factor Costs
Capacity-Related Costs Customer-Related Costs
Capacity Factor
Alloc. %
Capacity
Related Costs
Customer
Factor Alloc. %
Packet Pg. 653 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 10
Figure 6. Water Consumption by Customer Class
Figure 7 shows the peaking factors for each customer class. A “peaking factor” is the relationship between the average use by meter size to its peak use.
Figure 7. Peaking Factors by Customer Class
System infrastructure costs are typically incurred for the purpose of accommodating peak system capacity events and are generally allocated to meter sizes according to their contribution to peak capacity events.
These peaking factors are used to allocate the capacity-related costs to each customer class.
Figure 8 shows the number of meters for each customer class. The percentage of total customers by customer class is then used to develop the customer allocation factors to allocate customer costs. Customer costs are those costs associated with having customers connected to the water system and include costs related to general administration and billing costs.
Meter Size
Water
Consumption
FY 2022/23
(ccf) 1
Adjustment to
Annual
Consumption
Adjusted
Annual
Consumption
Variable Cost
Allocations (% of
Total Volume)
Single Family 5,695,743 0.00% 5,695,743 58.7%
Multi-Family 1,022,519 0.00% 1,022,519 10.5%
Commercial 1,554,080 0.00% 1,554,080 16.0%
Industrial 513,267 0.00% 513,267 5.3%
Institutional 916,714 0.00% 916,714 9.4%
Total 9,702,323 9,702,323 100.0%
Projected Consumption 2 10,070,954
Hydrant 0 0% 0 N/A
Grand Total 9,702,323 9,702,323
1. Consumption from 2022-2023 Report, Fiscal Year Usage by Class, from Ryan Bailey, 7-21-23.: 21.2022_Revenue_nbs.xlsx
May and June 2023 data from Water Revenue and Meter Count, Revenue Period 202305 and Revenue Period 202306, 7-25-23.
2. City's projected consumption. Source file: Water Proforma for NBS.xlsx.
Development of the BASE COMMODITY (VOLUMETRIC) Allocation Factor Meter Size '22/23 Average
Mo. Use (ccf)
'22/23 Peak Mo.
Use (ccf) 1
Peak Month
Factor 1
Capacity Factor
Alloc. %
Single Family 415,219 768,175 1.85 61.9%
Multi-Family 76,772 103,550 1.35 8.3%
Commercial 115,180 169,261 1.47 13.6%
Industrial 40,358 89,417 2.22 7.2%
Institutional 68,586 111,480 1.63 9.0%
Total 716,114 1,241,883 1.73 100.0%
Hydrant
Grand Total 716,114 1,241,883
1. From 2022-2023 Report, Fiscal Year Usage by Class, from Ryan Bailey, 7-21-23.: 21.2022_Revenue_nbs.xlsx Development of the PEAK CAPACITY (MAX MONTH) Allocation Factors Packet Pg. 654 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 11
Figure 8. Number of Meters by Customer Class
2.5 Rate Design Analysis
Evaluating the water rate structure includes reviewing rate-design objectives and policies, including continuity of rate design, revenue stability, equity among customers, and water conservation. NBS discussed the 40%/60% (preferred) and 42%/58% rate designs with City staff over the course of this study.
Ultimately, City staff selected the 40%/60% rate alternative, as it maintains continuity with the City’s existing rate structure. The following section describes how the proposed water rates were determined.
DEVELOPMENT OF PROPOSED RATES
Fixed Service Charges
The fixed meter charge recognizes that the water utility incurs fixed costs regardless of whether customers use water. Fixed charges vary based on meter sizes because larger meters have higher capacity demands and reflect their potential to use more of the system’s capacity. The potential capacity demands (peaking) is proportional to the maximum hydraulic flow through each meter size based on the hydraulic capacity ratios established by AWWA.
8 The AWWA capacity ratios used for this report are shown in Figure 9.
Figure 9. Hydraulic Capacity Factors
8 AWWA, 7th Edition, 2017, p. 386. Water Meters – Selection, Installation, Testing and Maintenance, Manual M6, AWWA, 5th Edition, 2012, pp. 63-65.
Meter Size
No. of Active
Meters (June '23)1 Percent of Total
Single Family 23,912 81.2%
Multi-Family 2,167 7.4%
Commercial 2,361 8.0%
Industrial 338 1.1%
Institutional 677 2.3%
Total 29,455 100.0%
Hydrant 0
Grand Total 29,455
1. Number of meters and customer class as of May '23.
From Source file: 21.2022_Revenue_nbs.xlsx
Development of the CUSTOMER Allocation Factor
3/4 inch 30 1.00
1 inch 50 1.67
1 1/2 inch 100 3.33
2 inch 160 5.33
3 inch 320 10.67
4 inch 500 16.67
6 inch 1,000 33.33
8 inch 1,600 53.33
10 inch 4,200 140.00
1. Per AWWA M-1, Table B-1.
Compound Class I Meters
Turbine Class II Meters
Meter Capacity
(gpm)1
Displacement Meters
Meter Size Equivalency
to 1-inch
Standard Meters
Packet Pg. 655 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 12
The actual number of meters by size is multiplied by the corresponding capacity ratios to calculate “equivalent” meters. The number of equivalent meters is used as a proxy for the potential demand that each customer can place on the water system.
Using the costs allocated to each customer class from Figure 5, Figure 10 shows the calculation of the fixed monthly service charges for all customer classes based on meter size. As previously mentioned, the customer service charge is calculated by dividing the customer service-related costs by the total number of meters, whereas the fixed capacity charge is calculated by dividing the capacity-related costs by the total number of equivalent meters for each meter size.
Figure 10. Calculation of Fixed Service Charges
Volumetric Rates
Currently, the City uses a uniform, or single tier, volumetric rate structure for all customers and the proposed rates maintain this existing structure. Figure 11 shows the calculation of the uniform tier rate per unit of water for all customers.
Figure 11. Uniform Tier Rates for CY 2024
/ 58% Variable) Proposed - Rate Design (40% Fixed / 60% Variable) 5/8 inch 3/4 inch 1 inch 1.5 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Single Family 23,294 - 508 4 4 - - - - - 23,810
Multi-Family 1,093 455 405 81 103 11 1 6 - - 2,155
Commercial 1,041 306 425 184 269 82 10 1 - - 2,318
Industrial 184 66 64 24 43 1 1 1 - - 384
Institutional - - - - - - - - 4 1 5
Total Meters/Accounts 25,612 827 1,402 293 419 94 12 8 4 1 28,672 Hydraulic Capacity Factor 2 1.00 1.50 2.50 5.00 8.00 16.00 25.00 50.00 80.00 210.00 Total Equivalent Meters 25,612 1,241 3,505 1,465 3,352 1,504 300 400 320 210 37,909 Monthly Fixed Service Charges
Customer Costs ($/Acct/mo.) 3 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 Capacity Costs ($/Acct/mo.) 4 $22.98 $34.46 $57.44 $114.88 $183.80 $367.61 $574.39 $1,148.78 $1,838.05 $4,824.87 Total Monthly Meter Charge $27.92 $39.41 $62.38 $119.82 $188.75 $372.55 $579.33 $1,153.72 $1,842.99 $4,829.82 Annual Fixed Costs Allocated to Monthly Meter Charges
Customer Costs $ 1,701,142
Capacity Costs & Fire Costs $10,451,641
Total Fixed Meter Costs $ 12,152,783
Annual Revenue from Monthly Meter Charges
Customer Charges $ 1,519,589 $ 49,067 $ 83,182 $ 17,384 $ 24,860 $ 5,577 $ 712 $ 475 $ 237 $ 59 $ 1,701,142 Capacity Charges 7,061,409 342,015 966,353 403,911 924,170 414,663 82,712 110,283 88,226 57,898 10,451,641 Total Revenue from Monthly Meter Charges $ 8,580,998 $ 391,081 $ 1,049,535 $ 421,295 $ 949,030 $ 420,241 $ 83,424 $ 110,757 $ 88,464 $ 57,958 $ 12,152,783
1. Number of meters by size and class are from the City of Redding utility billing system. Source: 21.2022_Revenue_nbs.xlsx
2. Source: AWWA Manual M1, "Principles of Water Rates, Fees and Charges", Table VI.2-5. Assumes displacement meters for 5/8 through 2 inch meters, Compound 3 - 8 inch meters, Turbine for 10 & 12 inch, unless noted otherwise.
3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers.
4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter.
Number of Meters
by Class and Size 1
June 2018 - May 2019 Total
Proposed - Rate Design (40% Fixed / 60% Variable)
Rate Structure Type
Number of
Meters 1
Water
Consumption 2
(ccf/yr.)
Target Rev.
Req't from Vol.
Charges
Uniform
Commodity
Rates ($/ccf)
Proposed Rate
Structure
Single Family 23,912 5,695,743 $ 10,701,426 $1.88 Uniform Multi-Family 2,167 1,022,519 1,921,156 $1.88 Uniform
Commercial 2,361 1,554,080 2,919,878 $1.88 Uniform
Industrial 338 513,267 964,350 $1.88 Uniform
Institutional 677 916,714 1,722,365 $1.88 Uniform
Uniform Commodity Rate ($/ccf) 29,455 9,702,323 $ 18,229,175 $1.88 Uniform
1. Meter count and customer class from source file 21.2022_Revenue_nbs.xlsx
2. Monthly consumption rate by customer type and meter size. Adjusted to match City's projection.
Packet Pg. 656 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 13
2.6 Proposed Water Rates
The City’s previous rate study was completed in 2018. Since then, the underlying cost factors (e.g., consumption by class, number of meters, peaking factors) have changed. The cost-of-service analysis by nature “re-balances” how costs are allocated between customer classes and, as a result, there are uneven adjustments in the first year of the four-year rate adoption period. In contrast, in the subsequent three years of the rate planning period, proposed charges are simply adjusted by the proposed adjustment in total rate revenue needed to meet projected revenue requirements.
Figure 12 shows the current and proposed water rates for CY 2024 through CY 2027 for each customer class and meter size. Projected rates for each calendar year9reflect adjustments based on the cost-of-service analysis, the 40% fixed/60% variable rate design structure, and the recommended percent increases in rate revenue planned for each year. More detailed tables on the development of the proposed water rates are documented in Appendix A. Water Rate Study Tables and Figures.
Figure 12. Current and Proposed Water Rates
2.7 Comparison of Current and Proposed Water Bills
Figure 13 and Figure 14 compare a range of monthly water bills under the current and proposed water rates for residential and commercial customers. These monthly bills are based on typical meter sizes and highlight the average consumption levels for each customer. 9 All rate adjustments are scheduled to be effective on January 1, 2024.
Proposed - Rate Design (40% Fixed / 60% Variable)
2024 2025 2026 2027
12%/18%* 6.50% 6.50% 6.50%
Fixed Service Charge - Based on Meter Size
Monthly Fixed Service Charge - Standard Meters:
* SFR 5/8 and 3/4 inch $24.92 $27.92 $29.73 $31.67 $33.73 3/4 inch $33.30 $39.41 $41.97 $44.70 $47.60
1 inch $50.08 $62.38 $66.44 $70.76 $75.36
1.5 inch $92.01 $119.82 $127.61 $135.91 $144.74
2 inch $142.32 $188.75 $201.02 $214.08 $228.00
3 inch $276.50 $372.55 $396.77 $422.56 $450.03
4 inch $427.45 $579.33 $616.99 $657.10 $699.81
6 inch $846.76 $1,153.72 $1,228.72 $1,308.58 $1,393.64
8 inch $1,349.93 $1,842.99 $1,962.79 $2,090.37 $2,226.24 10 inch N/A $4,829.82 $5,143.76 $5,478.10 $5,834.18
Commodity Charges for All Water Consumed per CCF
Uniform Rate $1.59 $1.88 $2.00 $2.13 $2.27
* Single Family Residents (SFR) Meters are 12% Increase, Commodity Charge is 18% Increase.
Larger Meter Fixed Charges Percent Increases Vary.
CCF = Hundred Cubic Feet (748 gallons)
Current Recommended Rates
Rates
Proposed Annual Rate Increases
Water Rate Schedule
Packet Pg. 657 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 14
Figure 13. Monthly Water Bill Comparison for Residential Customers Figure 14. Monthly Water Bill Comparison for Commercial Customers Packet Pg. 658 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 15
Figure 15 compares the single-family bills for the four-year rate adoption period assuming average consumption levels.
Figure 15. Residential Water Bills – 4-Years
Figure 16 presents a comparison of residential water rates for similar communities.
Packet Pg. 659 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 16
Figure 16. Residential Bills Comparison for Similar Communities Packet Pg. 660 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 17
3. Wastewater Rate Study
3.1 Key Wastewater Rate Study Issues
Similar to the water utility rate analysis, the City’s wastewater rate analysis was undertaken with a few specific objectives, including:
• Ensuring equity among customer classes by collecting rate revenue through the cost-of-service process based on both fixed monthly charges and volumetric rates. • Maintaining adequate reserve levels to ensure continuity in operations. • Ensuring adequate funding for the utility’s capital projects, due to the level of capital investment planned over the next four years.
• Complying with Prop 218 requirements to ensure costs are properly allocated between user classifications.
3.2 Financial Plan
Like the water utility, it is important for the wastewater utility to ensure rates provide sufficient funding to cover operating and maintenance costs, planned capital expenditures, and maintain reasonable reserves.
The wastewater utility’s rate increases are governed by these needs, and the current state of the City’s wastewater utility is as follows:
Meeting Net Revenue Requirements: For CY 2024 through CY 2027, the projected net revenue requirements (that is, total operating expenses plus rate-funded capital costs less non-rate revenues) for the City averages approximately $37.0 million annually. If no rate increases are implemented, the City is projected to run annual deficits every year, the largest being $5.8 million in CY 2026. Additionally, the utility would struggle to meet its debt service coverage requirements.
Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and emergencies. The reserve funds for the wastewater utility are considered unrestricted reserves and consist of the following:
• Operating Reserve equal to 25% of the Utility’s annual operating expenses. This reserve target is equal to a 3-month (or 90-day) cash cushion for normal operations. An operating reserve is intended to promote financial viability in the event of any short-term fluctuation in revenues and/or expenditures.
• Capital Reserve equal to 8% of the Utility’s annual operating expenses plus $1.0 million capital. • Debt Reserve equal to the existing SRF loan payments which have been factored into this analysis. Even though the Utility is not legally obligated to maintain a specific reserve balance for the outstanding loans, the City considers it prudent practice to do so in order to ensure the Utility’s ability to make its annual debt service payments.
Maintaining Adequate Bond Coverage: The City is required by the rate covenants of the 2020 Wastewater System Refunding Revenue Bonds to maintain a minimum debt service coverage ratio of 1.25. Maintaining a Packet Pg. 661 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 18
coverage ratio higher than 1.25 strengthens the City’s credit rating, which helps lower interest rates for debt-funded capital projects and can reduce annual debt service payments, although the wastewater utility is not anticipating issuing any new debt at this time. With the recommended rate increases, the City is projected to meet the debt coverage requirement for two of the four-year rate adoption period ending in CY 2027; coverage will be below the target in the other two years due to capital project costs. If necessary, these lower than targeted coverage ratios could be increased to meet the 1.25 target by using more reserves to fund capital project.
The recommended rate revenue increases are 5% annually in the first two years (CY 2024 and CY 2025) and 4% annually in years three and four (CY 2026 and CY 2027) of the four-year rate adoption period. Figure 17 summarizes the sources and uses of funds, net revenue requirements, and the recommended annual increases in wastewater rate revenue proposed for the next four years. Figure 18 summarizes the projected reserve fund balances and reserve targets for the wastewater utility’s unrestricted funds.
Figure 17. Summary of Wastewater Revenue Requirements
Figure 18. Summary of Wastewater Reserve Funds
Budget
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Sources of Sewer Funds
Rate Revenue Under Prevailing Rates $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 Non-Rate Revenues 78,537 78,357 81,842 85,499 89,335
Interest Earnings 479,699 - - - -
Total Sources of Funds $ 34,618,762 $ 34,138,883 $ 34,142,368 $ 34,146,025 $ 34,149,861 Uses of Sewer Funds
Operating Expenses $ 16,102,402 $ 17,368,940 $ 18,067,994 $ 18,934,893 $ 19,844,058 Debt Service 10,173,269 7,290,393 6,171,887 6,172,887 6,174,637 Rate-Funded Capital Expenses 22,745,832 13,424,361 10,399,666 14,837,497 9,605,279 Total Use of Funds $ 49,021,504 $ 38,083,693 $ 34,639,547 $ 39,945,277 $ 35,623,973 Surplus (Deficiency) before Rate Increase$ (14,402,742) $ (3,944,810) $ (497,179) $ (5,799,252) $ (1,474,112) Additional Revenue from Rate Increases $ - $ 1,703,026 $ 3,491,204 $ 4,993,273 $ 6,555,425 Total Rate Revenue After Rate Increases $ 34,060,526 $ 35,763,552 $ 37,551,730 $ 39,053,799 $ 40,615,951 Surplus (Deficiency) after Rate Increase $ (14,402,742) $ (2,241,784) $ 2,994,025 $ (805,979) $ 5,081,313 Projected Annual Rate Increase 0.00% 5.00% 5.00% 4.00% 4.00% Cumulative Rate Increases 0.00% 5.00% 10.25% 14.66% 19.25% Net Revenue Requirement 1$ 48,463,268 $ 38,005,336 $ 34,557,705 $ 39,859,778 $ 35,534,638
1. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from sewer rates.
Summary of Sources and Uses of Funds
and Net Revenue Requirements
Projected Budget
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Operating Reserve
Beginning Balance $ 22,230,006 $ 4,342,000 $ 948,703 $ 3,682,728 $ 2,576,749 Recommended Minimum Target 4,026,000 4,342,000 4,517,000 4,734,000 4,961,000 Capital Rehab & Replacement Reserve (Rates)
Beginning Balance $ 17,000,000 $ 9,805,264 $ 5,200,000 $ 2,850,000 $ 2,850,000 Recommended Minimum Target 4,840,000 5,200,000 5,700,000 5,900,000 6,100,000 Debt Reserve
Beginning Balance $ 3,931,611 $ 3,931,611 $ 3,931,611 $ 3,931,611 $ 3,931,611 Recommended Minimum Target 4,058,000 4,058,000 4,058,000 4,058,000 4,058,000 Total Beginning Balance $ 43,161,617 $ 18,078,875 $ 10,080,314 $ 10,464,339 $ 9,358,360 Total Recommended Minimum Target $ 12,924,000 $ 13,600,000 $ 14,275,000 $ 14,692,000 $ 15,119,000 Beginning Reserve Fund Balances and
Recommended Reserve Targets
Projected
Packet Pg. 662 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 19
A more detailed version of the utility’s proposed four-year financial plan is included in Appendix B. The appendix tables include revenue requirements, reserve funds, revenue sources, proposed rate increases, and the City’s capital improvement program.
3.3 Cost-of-Service Analysis
Due to the limitations of the wastewater utility billing system, the detailed customer data linking water use to individual wastewater customer accounts is not available. The issue with the wastewater billing system data is the reason why a full cost-of-service analysis has never been performed. As a result, NBS reviewed and evaluated the Utility’s revenue requirements and current rate design from a broader perspective. In NBS’ opinion, absent of the detailed customer data, the City’s current rate design is reasonably fair and equitable, and we and the City staff are not aware of any apparent inequities that would necessitate a more detailed analysis.
In light of these factors, City staff has determined that across-the-board adjustments to current rates are acceptable, with the provision that the City will work on acquiring the necessary billing data so that a more detailed cost-of-service analysis can be performed in the future.
3.4 Rate Design Analysis
Currently, the City’s wastewater rates consist of a fixed monthly charge per residence for single-family dwellings and a fixed monthly charge per unit for multi-family dwellings. Standard commercial and commercial food preparation customers are billed in two different ways; standard commercial customers are charged either a volumetric ($/CCF) rate based on water consumption or a fixed charge per month based on the number of equivalent housing units per location/account. The commercial food preparation rate is twice the residential and commercial rates to account for the higher conveyance and treatment costs associated with higher biochemical oxygen demand (BOD), total suspended solids (TSS), and oil and grease from food preparation effluent.
As mentioned earlier, the City decided to continue using the current rate structure. The proposed rates reflect the necessary increases in rate revenue each year.
3.5 Proposed Wastewater Rates
The proposed wastewater rates are similar to existing rates in terms of the rate design and rate methodology. Figure 19 compares the current and proposed rates for CY 2024 through CY 2027 by customer class. The projected rates for future years are strictly tied to annual rate increase in an “acrossthe-board” adjustment. More detailed tables on the development of the proposed rates are documented in Appendix B.
Packet Pg. 663 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 20
Figure 19. Current vs. Proposed Wastewater Rates
3.6 Comparison of Current and Proposed Wastewater Bills The following figures compare monthly wastewater bills under current and proposed rates for various customers over the four-year rate period. These bill comparisons are calculated at typical levels of consumption. The last figure presents a comparison of residential sewer rates for similar communities.
Figure 20. Single-Family Residential Wastewater Bill Comparison CY 2024 CY 2025 CY 2026 CY 2027
Annual Rate increases as shown in Financial Plan: 5.00% 5.00% 4.00% 4.00% Monthly Service Charges:
Single Family Dwelling ($/residence) $64.17 $67.38 $70.75 $73.58 $76.52 Multi Family Dwelling ($/unit) $47.49 $49.86 $52.35 $54.44 $56.62 Standard Commercial billed monthly ($/ccf) $6.59 $6.92 $7.27 $7.56 $7.86 Standard Commercial calculated annually ($/# HE) 2 $64.17 $67.38 $70.75 $73.58 $76.52 Commercial Food Preparation billed monthly ($/ccf) $13.20 $13.86 $14.55 $15.13 $15.74 Commercial Food Preparation calculated annually ($/# HE) $128.36 $134.78 $141.52 $147.18 $153.07
1. Current rates are from source file: REDDING_Wastewater Fee Schedule.pdf .
2. Includes Industrial, Other and Unknown customers.
Proposed Rates
SEWER RATE SCHEDULE
Current
Rates 1
Packet Pg. 664 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 21
Figure 21. Multi-Family Residential Wastewater Bill Comparison Figure 22. Commercial Wastewater Bill Comparison
Packet Pg. 665 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 22
Figure 23. Commercial Food Prep Wastewater Bill Comparison Packet Pg. 666 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study
– City of Redding
Prepared by NBS– September 2023 23
Figure 24. Regional Wastewater Bill Comparison
Packet Pg. 667 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 24
4. Solid Waste Rate Study
4.1 Key Solid Waste Rate Study Issues
The City’s solid waste rate analysis was undertaken with a few specific objectives, including:
• Ensuring rates adequately considered new costs related to new programs:
o Senate Bill 1383 requirements for additional recycling programs and related costs were particularly challenging in terms of keeping rate increases as low as possible. o The solid waste utility is also facing significant capital project and equipment costs. • Maintaining adequate reserve levels to ensure continuity in operations. • Ensuring adequate funding for the utility’s capital projects, due to the level of capital investment planned over the next four years.
• Complying with Prop 218 requirements to ensure costs are properly allocated between user classifications.
4.2 Financial Plan
Like the water and wastewater utilities, it is important for the solid waste utility to ensure rates provide sufficient funding to cover operating and maintenance costs, planned capital expenditures, and maintain reasonable reserves. The solid waste utility’s rate increases are governed by these needs, and the current state of the City’s solid waste utility is as follows:
Meeting Net Revenue Requirements: For CY 2024 through CY 2027, the projected net revenue requirements (that is, total operating expenses plus rate-funded capital costs less non-rate revenues) for the City increases from approximately $23.5 million to $27.1 million annually. If no rate increases are implemented, the City is projected to run an annual deficit of approximately $6.9 million beginning in CY 2024 and increasing to $10.8 million by CY 2027.
Maintaining Reserve Funds: Reserve funds provide a basis for a utility to cope with fiscal emergencies such as revenue shortfalls, asset failure, and natural disasters, among other events. Reserve policies provide guidelines for sound financial management, with an overall long-range perspective to maintain financial solvency and mitigate financial risks associated with revenue instability, volatile capital costs, and emergencies. The reserve funds for the wastewater utility are considered unrestricted reserves and consist of the following:
• Operating Reserve target reserves is equal to 25 percent of the Utility’s budgeted annual operating expenses less utility expenses, tipping fees, and administration costs. This reserve target is equal to a 3-month (or 90-day) cash cushion for normal operations. • Capital Reserve target equals the average capital project cost over the next four years, which is about $1.46 million.
• Rolling Stock Reserve equal to the average annual rolling stock replacement costs of approximately $1.5 million for the next four years.
The recommended rate revenue increases are 15% in CY 2024, 8% in CY 2025, 8% in CY 2026, and 6% in CY 2027. Figure 25 summarizes the sources and uses of funds, net revenue requirements, and the Packet Pg. 668 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 25
recommended annual increases in solid waste rate revenue proposed for the next four years. Figure 26 summarizes the projected reserve fund balances and reserve targets for the solid waste utility’s unrestricted funds.
Figure 25. Summary of Solid Waste Revenue Requirements
Figure 26. Summary of Solid Waste Reserve Funds
A more detailed version of the utility’s proposed four-year financial plan is included in Appendix C. The appendix tables include revenue requirements, reserve funds, revenue sources, proposed rate increases, and the City’s capital improvement program.
4.3 Cost-of-Service Analysis
Once the net revenue requirements are determined, the cost-of-service analysis (COSA) proportionately distributes the revenue requirements to each of the customer classes. The COSA consists of the classification of expenses and then the allocation of those expenses to customer classes based on allocation Budget
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Sources of Solid Waste Funds
Rate Revenue Under Prevailing Rates $ 9,942,670 $ 10,011,595 $ 10,081,039 $ 10,148,617 $ 10,216,299 Fee Revenue 7,691,470 7,744,789 7,798,510 7,850,787 7,903,144 Other Revenue 2,633,490 2,651,746 2,670,139 2,688,039 2,705,965 Interest Earnings 163,600 182,010 193,892 206,754 217,538 Total Sources of Funds $ 20,431,230 $ 20,590,141 $ 20,743,580 $ 20,894,197 $ 21,042,946 Uses of Solid Waste Funds
Operating Expenses $ 24,178,900 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 29,859,299 Debt Service - - - - 2,000,000
Rate-Funded Capital Expenses 1,658,350 - - - -
Total Uses of Funds $ 25,837,250 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 31,859,299 Surplus (Deficiency) before Rate Increase $ (5,406,020) $ (6,866,619) $ (8,017,410) $ (7,940,631) $(10,816,352) Additional Revenue from Rate Increases $ - $ 1,530,610 $ 4,973,025 $ 7,061,865 $ 8,785,023 Surplus (Deficiency) after Rate Increase $ (5,406,020) $ (5,336,009) $ (3,044,385) $ (878,765) $ (2,031,329) Projected Annual Rate Increase 0.00% 15.00% 8.00% 8.00% 6.00% Cumulative Rate Increases 0.00% 15.00% 24.20% 34.14% 42.18% Net Revenue Requirement 1
$ 11,970,789 $ 23,513,202 $ 24,556,985 $ 24,349,197 $ 27,137,117 Total Rate Revenue After Rate Increases $ 20,267,630 $ 21,938,741 $ 25,522,713 $ 27,749,308 $ 29,610,432
1. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from solid waste rates.
Summary of Sources and Uses of Funds and
Net Revenue Requirements
Projected Budget
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Operating Reserve
Ending Balance $ 4,057,000 $ 782,538 $ 498,266 $ 2,148,378 $ 2,921,693 Recommended Minimum Target 4,057,000 4,840,000 5,188,000 5,284,000 5,487,000 Capital Rehab & Replacement Reserve
Ending Balance $ 6,545,575 $ 4,345,575 $ 2,203,575 $ 3,253,575 $ 3,694,575 Recommended Minimum Target 1,460,000 1,460,000 1,460,000 1,460,000 1,460,000 Rolling Stock Reserve
Ending Balance $ 504,355 $ 1,104,355 $ 1,227,395 $ 1,161,995 $ 1,535,295 Recommended Minimum Target 1 504,355 1,104,355 1,227,395 1,161,995 1,535,295 Total Ending Balance $ 11,106,930 $ 6,232,469 $ 3,929,237 $ 6,563,948 $ 8,151,563 Total Recommended Minimum Target $ 6,021,355 $ 7,404,355 $ 7,875,395 $ 7,905,995 $ 8,482,295
1. The Rolling Stock Reserve receives annual transfers-in to meet expenditures, so the ending balance is the target reserve.
Ending Reserve Fund Balances and
Recommended Reserve Targets
Projected
Packet Pg. 669 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 26
factors, which are determined by the fixed and variable costs associated with the level of service provided to the customer. The level of service refers to the number and size of containers, the number of pickups per week, and the tonnage of waste collected. Ultimately, a COSA is intended to result in rates that are proportional to the cost of providing service to each customer class.
CUSTOMER CLASSES AND ALLOCATION FACTORS
The solid waste cost-of-service analysis is significantly different than the cost-of-service analysis for the water and wastewater utilities. Specific allocation factors for each customer class (i.e., number and size of containers, pickups per week, and waste tonnages) determine how costs are divided into various types of service (e.g., residential, commercial, and roll-offs). A detailed allocation of costs was prepared based on input from City staff and a thorough review of collection, disposal, and transfer station operations.
Figure 27 shows the development of the solid waste tonnage allocation factors by customer class.
Figure 27. Development of the Solid Waste Tonnage Allocation Factors Figure 28 summarizes the development of the solid waste accounts/pickups per week allocation factors.
Figure 28. Development of the Accounts/Pickups Per Week Allocation Factors Since some of the solid waste operating costs are not easily allocated to the various types of services, the average tonnage and the number of accounts/pickups were used to develop combined allocation factors.
Figure 29 summarizes the combined allocation factors.
Solid Waste Tonnage Allocation Factors:
Avg. 2020-22
Tonnage
Tonnage
Allocation
Factors
(% of Total)
Residential 32,271 44.3%
Commercial 29,197 40.1%
Roll Off 10,382 14.2%
Street Sweeper 1
1,034 1.4%
Total 72,885 100.0%
1. Adjusted to account for Greenwaste (City Trucks YW to Compost) at the TS from Residential yardwaste collection. TS greenwaste % allocated to Residential Carts: 75.0% Customer Class
Solid Waste - Accounts / Pickups Per Week Allocation Factors:
Type of Account/Service # of Accounts (or
Unsch. Lifts)
% of Total
Accounts/
Pickups
Resid. Carts (Includes Comm. Carts) 28,109 79.7%
Commercial (Compactor & Container Accts) 5,114 14.5%
Drop Boxes (No. of Unscheduled Pickups) 2,044 5.8%
Total 35,267 100%
Data is from source file: June 2022 Waste Wheeler Revenue.pdf and June 2022 Fixed Charge Report with notes.pdf .
Packet Pg. 670 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 27
Figure 29. Development of the Combined Allocation Factors
CLASSIFICATION AND ALLOCATION OF COSTS
Figure 30 summarizes the allocation of the net revenue requirements to each cost causation component for the proposed rates.
Figure 30. Allocation of Revenue Requirements by Customer Class The total revenue requirements for each customer class were calculated using the allocation factors and target revenue requirements. Figure 31 summarizes these calculations and indicates that, overall, 47% of the rate revenue should be collected from residential customers, 43% from commercial customers, and 10% from roll-off customers. As noted previously, as a result of the cost-of-service analysis, adjustments were made to both the amount of revenue required and the individual rates based on the level of service.
Figure 32 provides a comparison of the revenue currently collected by customer class and the costs allocated to each customer class under the proposed rates. As this figure shows, residential customers now pay a slightly smaller percentage of the total revenue requirements, commercial customers pay a larger percentage under the proposed rates, and drop boxes pay less than their current revenue requirement.
Customer Class
Tonnage
Allocation
Factor
Accounts /
Pickups
Allocation Factor
Combined
Allocation
Factor 1
Residential 44.3% 79.7% 56.0%
Commercial 40.1% 14.5% 32.0%
Roll Off 14.2% 5.8% 11.0%
Street Sweeper21.4% N.A. 1.0%
Total 100.0% 100.0% 100.0%
1. This is the weighted average of the Tonnage (2/3) and Accounts/pickups (1/3) factors.
2. Reallocated to Residential, Commercial, and Roll-off customer classes.
Summary of Solid Waste Cost Allocations
Acct. Budget Category Residential Commercial Roll-Off Transfer Station 550 Admin.
551 Residential Collection Customers served
552 Commercial Collection Customers served
553 Roll-Off Collection Customers served
556 Resource Recovery Avg. of Resid/Comm Accts. & Recycling tons 557 Transfer Station Annual T.S. Tonnage
558 Household Hazardous Waste 6,886 Resid. vs. 186 Comm. HHW customers 5 559 Street Sweeping Miles of Streets Swept (46 Res./54 Comm.) Less Non-Rate Rev. Allocated As All Operating Costs
Basis for Allocation
Avg. % of Tonnage & No. of Accounts
Packet Pg. 671 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 28
Figure 31. Summary of Revenue Requirements by Customer Class Figure 32. Summary of Current vs. Proposed Revenue Requirements by Customer Class
4.4 Rate Design Analysis
Residential Container Rates – Based on the revenue requirements by customer class (see Figure 31), rate design analysis determines the individual rates within each customer class. Figure 33 below summarizes the calculations and basis for residential container rates. This includes various adjustments, such as the inclusion of revenue from a second green waste cart.
Figure 33 also shows the residential programs costs, including the costs for recycling (resource recovery) and the household hazardous waste program, and how these costs were allocated to each container size.
The recommended residential solid waste rates are provided in Figure 34. A comparison of the typical single-family monthly solid waste bill with that of other communities is provided in Figure 35.
Summary of Solid Waste Cost Allocations to Customer Classes Acct. Budget Category* Residential Commercial Drop Box Total 550 Solid Waste Administration 1 $ 2,127,364 $ 1,226,079 $ 414,470 $ 3,767,913 551 Residential Collection (less Waste Wheelers) 4,022,561 - - 4,022,561 Customer class served 551 Residential Waste Wheelers 103,614 - - 103,614 Container Cost Allocation %'s 552 Commercial Collection 2 - 3,636,479 - 3,636,479 Customer class served 552 Commercial Container Costs - 90,662 90,662 181,324 50/50 between commercial & roll-offs 3 553 Roll-Off Collection - - 1,692,883 1,692,883 Customer class served 556 Resource Recovery4 $3,015,226 $3,762,683 124,352 6,902,261 Avg. of Resid/Comm Accts. & Recycling tons 556 Resource Recovery (Waste Wheeler Costs) 207,227 - - 207,227 100% included in Resid. COS 557 Transfer Station 5 1,836,157 2,257,898 490,066 4,584,120 Annual T.S. Tonnage (Incl. Street Sweeping costs) 558 Hhld Hazardous Waste6 816,395 25,249 - 841,644 6,886 Resid. vs. 186 Comm. HHW customers 559 Street Sweeping 635,678 759,713 155,043 1,550,434 Miles of Streets Swept Rate-Funded Capital - - - - Allocated As All Operating Costs Less Non-Rate Rev. (1,823,583) (1,678,210) (519,317) (4,021,110) Various - Changes by type of revenue 10,940,639 10,080,553 2,448,159 23,469,351
47% 43% 10% 100% $ 23,469,351 Target Rev. (Func. & Alloc.) Previous Rate Study: 52% 38% 10% 100%
Basis for Allocation
Total Adjusted to meet Target Rate Revenue
Avg. % of Tonnage & No. of Accounts
% of Total
Summary of Current vs. Proposed Rate Revenue
Current vs. Proposed Budget Residential Commercial Drop Box Total Current Rates (CY 2023 Budget) $ 10,371,755 $ 7,384,630 $ 2,651,746 $ 20,408,131 Proposed Rates (CY 2024) $ 10,940,639 $ 10,080,553 $ 2,448,159 $ 23,469,351 Percent Change 5.5% 36.5% -7.7% 15.0%
Current Rates - % of Total 51% 36% 13% 100%
Proposed Rates - % of Total 47% 43% 10% 100%
Packet Pg. 672 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study
– City of Redding
Prepared by NBS– September 2023 29
Figure 33. Summary of Proposed Residential Container Rates 45-Gal Carts 64-Gal Carts 96-Gal Carts
Residential Account Data
No. of Carts 2 (Includes Comm. Carts)
Standard Service (All Carts) 1,285 4,318 22,506 28,109
No. of "Equivalent Carts" (Volume Adj.) 3 604 2,893 22,506 26,003 Residential Program Costs
Admin. Costs $97,266 $326,803 $1,703,295 $2,127,364
Residential Collection5 138,585 531,770 3,352,206 4,022,561 50% waste volume by cart size & 50% No. of Accounts Residential Waste Wheelers 4,164 13,991 85,459 103,614 Container Cost Allocation %'s Resource Recovery 137,861 463,195 2,414,171 3,015,226 Proportional to number of total carts.
Resource Recovery (Waste Wheeler4 ) 8,328 27,981 170,918 207,227 Proportional to current container costs. (Table 30) Transfer Station 42,566 203,401 1,590,190 1,836,157 Annual T.S. Tonnage (Incl. Street Sweeping costs) HHW Program 37,327 125,413 653,654 816,395 Cost are same regardless of size container.
Street Sweeping 29,064 97,652 508,962 635,678 Cost are same regardless of size container.
Rate-Funded Capital - - - - Cost are same regardless of size container. less Non-Rate Rev. Credits (83,377) (280,136) (1,460,069) (1,823,583) Total Annual Costs $411,784 $1,510,070 $9,018,786 $10,940,639 less 2nd GW Cart Revenue 6($12,345) ($41,477) ($216,178) ($270,000) Net Resid. Rate Rev. (w/o 2nd GW Cart Rev.) $399,439 $1,468,593 $8,802,608 $10,670,639 Proposed New Rates7 $25.90 $28.34 $32.59 $31.63 (Avg.)
Change vs. Current Rate $0.60 $1.89 $4.29
Current Rates $25.30 $26.45 $28.30
1. Includes both residential and commercial cans (carts).
2. Source file: City's Waste Wheeler Revenue Report. Note: Additional Carts are no longer offered.
3. Assumes a 45-gal. cart is 47% of a 96-gal cart and a 64-gal. cart is 67% of a 96-gal cart.
4. Budgeted cost for "Waste Wheelers."
5. Total Residential Collection budget less the cost of containers, disposal, and NCC changes.
6. Assumes the City continues charging for the second green waste cart at $4.50/month instead of $4.00/month and the current number of GW carts is estimated at 5,000.
Revenue is allocated to residential carts based on total carts in each size.
7. These proposed rates better reflect the volume differences in the 45-, 64-, and 96-gallon cart sizes and better incentivizes waste reduction.
Residential Containers 1 Total
(or average) Allocation Basis
Calculation of Residential Service Charges (Includes Commercial Carts, but not Containers) Proportional to number of total carts.
45-gal. = 47% of 96-gal., 64-gal = 67% of 96-gal.
Allocated by number of Accounts
From Waste Wheeler Rev. Report (Standard Service Carts
adjusted to better match '22/23 rate revenue)
Packet Pg. 673 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 30
Figure 34. Current and Proposed Solid Waste Rates – Residential Customers Figure 35. Monthly Single-Family Solid Waste Bill Comparison with Other Communities CY 2024 CY 2025 CY 2026 CY 2027
Annual Rate increases as shown in Financial Plan: 15.00% 8.00% 8.00% 6.00% Residential Wheeled Cart Monthly Rate 1
45-Gal Container $25.30 $25.90 $27.97 $30.21 $32.02
64-Gal Container $26.45 $28.34 $30.61 $33.06 $35.04
96-Gal Container $28.30 $32.59 $35.20 $38.02 $40.30
Additional Green Waste Container $4.00 $4.60 $4.97 $5.37 $5.69 Landfill Monitoring
Automated Cart Special Collection Rate (per cart)
45-gallon
Same Day (50% of monthly fee) $12.65 $12.95 $13.99 $15.10 $16.01 Not Same Day (65% of monthly fee) $16.45 $16.83 $18.18 $19.64 $20.81 64-gallon
Same Day (50% of monthly fee) $13.22 $14.17 $15.30 $16.53 $17.52 Not Same Day (65% of monthly fee) $17.19 $18.42 $19.90 $21.49 $22.78 96-gallon
Same Day (50% of monthly fee) $14.15 $16.30 $17.60 $19.01 $20.15 Not Same Day (65% of monthly fee) $18.40 $21.19 $22.88 $24.71 $26.19
1. Residential Service includes trash, recycling, and green waste containers.
SOLID WASTE RATE SCHEDULE Current Rates
(2023)
($0.22/month - no increases)
Proposed Rates
Packet Pg. 674 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 31
Commercial Container Rates – Calculating commercial container rates involves first determining the costof-service for specific service components, such as costs per container lift, costs per cubic yard of waste collected, and costs for the containers themselves. Figure 36 summarizes these unit costs which are then used to allocate the commercial revenue requirements to each level of service (i.e., size of container and number of pickups per week).
Packet Pg. 675 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 32
Figure 36. Summary of Calculated Unit Costs for Commercial Services Proposed commercial container and front load compactor rates are summarized in Figure 37. A detailed comparison of the current and proposed rates indicates that costs are not equally distributed among individual services. As a result, some types of services increased more than the average while others actually decreased. The complete schedule for commercial bins and compactors is provided in the Appendix.
Calculation of Commercial Service Charges 1
Commercial Account Data & Program Costs
Solid Waste Admin. Costs $ 1,226,079 197,116 Total Lifts/Yr. $6.22/Lift Commercial Collection 2
Cost of Disposal 1,305,533 765,278 CY/Year $1.71/CY
Cost of Collection 4 2,330,946 197,116 Total Lifts/Yr. $11.83/Lift Total Comm. Collection 3,636,479 N.A. N.A. N.A.
Cost of Containers 3 ($/yr.) 90,662 2,652 No. of Cont. $34.19/Cont./Yr Resource Recovery 3,762,683 197,116 Total Lifts/Yr. $19.09/Lift Allocated T.S. Costs 2,257,898 765,278 CY/Year $2.95/CY HHW Program 25,249 197,116 Total Lifts/Yr. $0.13/Lift
Street Sweeping 759,713 197,116 Total Lifts/Yr. $3.85/Lift Rate-Funded Capital - 197,116 Total Lifts/Yr. $0.00/Lift less Non-Rate Rev. Credits (1,678,210) 197,116 Total Lifts/Yr. ($8.51)/Lift less Comm. Organics Rev. Credit (1,400,000) 197,116 Total Lifts/Yr. ($7.10)/Lift Add-back (NCC Surcharges) 5$ 386
Total Annual Costs 6$ 8,680,939
Total Lift Costs in $/Lift $25.50/Lift
Total Disposal Costs in $/CY $4.66/CY
Total Container Costs in $/Container $34.19/Cont./Yr
1. Includes only commercial containers that are charged fees; excludes recycling services.
2. Includes additional carts and assumes a 64-gal. cart is 67% of a 96-gal cart.
3. Costs are those budgeted for "Sanitation Containers." Commercial and Roll-offs split this cost per City staff.
4. Total Commercial Collection budget for Carts (vs. Compactors/Containers) less the cost of containers and disposal.
5. Non-Curbside Collection (NCC) surcharge revenue is assumed to be about the same and is deducted from the Cost of Collection revenue requirement and added back here.
This cost is not included when calculating commercial rates.
6. This does not reconcile with the summary of costs due to adjustments for container costs which are split between comm. & roll-offs.
Applies to each lift, regardless of container size.
Applies to each lift, regardless of container size.
Proportional to number of "Equivalent Carts."
Applies to each lift, regardless of container size.
This cost will be adjusted to reflect differences in container sizes.
Applies to each lift, regardless of container size.
Applies to each lift, regardless of container size.
Applies to each lift, regardless of container size.
Costs will be adjusted to account for size.
Applies to each lift, regardless of container size.
This cost will be adjusted to reflect differences in container sizes.
Proportional to CY/Year.
Cost Categories
Commercial
Containers 1
No. of
Units
Type of
Unit
Allocation Basis
Applies to each lift, regardless of container size.
Per-Unit
Cost
Packet Pg. 676 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 33
Figure 37. Summary of Commercial Service Rates
Figure 38 summarizes the roll-off costs by budget category, including adjustments for other revenues collected outside the monthly service charges or per pickup charges. These were the adjustments deducted from the rate revenues.
Roll-off services are primarily provided on an “as-needed,” or unscheduled basis, and consist of two basic types of containers: (1) Roll-off Compactors, and (2) Roll-off Containers (i.e., non-compactor bins). Figure 39 summarizes the costs allocated to each type of container and each size of container, resulting in a rate per lift (or pickup).
Summary of 2019/20 Commercial CONTAINERS (Scheduled & Unscheduled):
1 2 3 4 5 6
1.0 0 0 $16.42 $4.66 $10.06 $26.60 $92.20 $183.56 $274.91 $366.27 $457.63 $548.99
1.5 366 20,124 $18.07 $4.66 $15.09 $31.68 $109.82 $218.39 $326.96 $435.52 $544.09 $652.66
2.0 557 32,432 $19.71 $4.66 $20.12 $36.76 $127.45 $253.22 $379.00 $504.77 $630.55 $756.32
3.0 538 36,608 $22.99 $4.66 $30.19 $46.93 $162.70 $322.89 $483.08 $643.27 $803.46 $963.65
4.0 755 61,776 $26.28 $4.66 $40.25 $57.10 $197.96 $392.56 $587.17 $781.77 $976.37 $1,170.98
6.0 331 33,904 $32.85 $4.66 $60.37 $77.44 $268.47 $531.90 $795.33 $1,058.77 $1,322.20 $1,585.64
8.0 76 9,308 $39.42 $4.66 $80.50 $97.78 $338.97 $671.24 $1,003.50 $1,335.76 $1,668.03 $2,000.29 Total 2,623 194,152
2.0 6 728 $19.71 $4.66 $20.12 $60.05 $208.17 $414.66 $621.15 $827.64 $1,034.13 $1,240.62
3.0 7 676 $22.99 $4.66 $30.19 $81.86 $283.78 $565.04 $846.31 $1,127.57 $1,408.83 $1,690.10
4.0 5 520 $26.28 $4.66 $40.25 $103.67 $359.39 $715.43 $1,071.46 $1,427.50 $1,783.54 $2,139.57
5.0 0 0 $29.56 $4.66 $50.31 $125.48 $435.00 $865.81 $1,296.62 $1,727.43 $2,158.24 $2,589.05
6.0 11 1,040 $32.85 $4.66 $60.37 $147.29 $510.61 $1,016.20 $1,521.78 $2,027.36 $2,532.95 $3,038.53
8.0 0 0 $39.42 $4.66 $80.50 $190.91 $661.84 $1,316.97 $1,972.10 $2,627.23 $3,282.36 $3,937.49 Total 29 2,964
Grand Total - Commercial 2,652 197,116
1. Data is from the Solid Waste Fixed Charge Summary Report for June 2022 provided City Staff. Source file: June 2022 Fixed Charge Report with notes.pdf .
2. This is the adjusted cost per lift and assumes that 50% of cost/lift is related to container volume (it reflects higher cost of handling and fewer pickups per collection vehicle).
3. Includes a 25% surcharge for intermittent service (vs. scheduled).
4. Rates are determined using lift costs (times the number of lifts), disposal costs (times the amount of disposal per container), and container costs (adjusted to account for size of container).
Also, compactor rates were adjusted to reflect the higher disposal tonnages that result from compaction vs. loose-fill waste in non-compactor containers.
Costs
Per CY
Collected
Total No.
(excl.
Unsched.)
Total
Lifts/yr. Costs per Lift 2
Front Load
Compactors
Unsched.
Rates 3
Monthly Rates - By Container Size & Pickups Per Week Container 4 Cost
($/yr.)
Commercial
Containers
Container Type 1 Size
(CY)
Packet Pg. 677 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study
– City of Redding
Prepared by NBS– September 2023 34
Figure 38. Summary of Roll-Off Service Costs
Figure 39. Summary of Roll-Off Service Rates
Summary of Solid Waste Cost Allocations to Customer Classes Acct. Budget Category Roll-Off Costs 1
Tonnage Rev.
Adjustment 2
Recy. Hauling
$ Adj. 3 Adjusted Cost 4
550 Solid Waste Administration $ 414,470 $ (164,090) $ - $ 250,381 Avg. % of Tonnage & No. of Accounts 551 Residential Collection $ - $ - $ - $ - Customer class served 552 Commercial Collection $ - $ - $ - $ - Customer class served 553 Roll-Off Collection $ 1,692,883 $ (670,215) ($31,526) $ 991,141 Customer class served 552 Commercial Container Costs $ 90,662 $ (35,893) $ - $ 54,769 50/50 between commercial & roll-offs 556 Resource Recovery $ 124,352 $ (49,231) $ - $ 75,121 Avg. of Resid/Comm Accts. & Recycling tons 557 Transfer Station $ 490,066 $ (194,018) $ - $ 296,048 Annual T.S. Tonnage (Incl. Street Sweeping costs) 558 Hhld Hazardous Waste $ - $ - $ - $ - 6,886 Resid. vs. 186 Comm. HHW customers 559 Street Sweeping $ 155,043 $ (61,382) $ - $ 93,661 Miles of Streets Swept 559 Rate-Funded Capital $ - $ - $ - $ - Allocated As All Operating Costs Less Non-Rate Rev. $ (519,317) $ - $ - $ (519,317) Various - Changes by type of revenue $ 2,448,159 $ (1,174,829) $ (31,526) $ 1,241,804
1. From Summary of Solid Waste Cost Allocations to Customer Classes, without adjustments for tonnage revenues.
2. The City collects additional revenue from Roll-Off services for tonnages over the weight limits, estimated costs are $1,174,829 This revenue is deducted equally from revenue requirements of other cost categories to calculate fixed charges.
3. Deduction for hauling fee revenue for recycled roll-offs.
4. Roll-Off Costs less Adjustments.
Basis for Allocation
Total
Lifts/Yr. Lifts/Yr. Total CY/Yr. Total CY/Yr. Lifts/Yr.
10.0 12 360 $1,615 $6,394 $1,203 $1,442 ($3,350) $7,305 12.2% $401.46
20.0 36 2,160 $4,846 $19,183 $7,220 $4,327 ($10,051) $25,525 12.2% $547.22
25.0 48 3,600 $6,461 $25,578 $12,033 $5,769 ($13,402) $36,439 12.2% $620.11
30.0 132 11,880 $17,769 $70,339 $39,708 $15,865 ($36,855) $106,827 12.2% $693.00
37.0 12 1,332 $1,615 $6,394 $4,452 $1,442 ($3,350) $10,554 12.2% $795.03
40.0 264 31,680 $35,538 $140,678 $105,889 $31,730 ($73,710) $240,125 12.2% $838.76 Total - Compactors 504 51,012 $67,845 $268,567 $170,505 $60,575 ($140,718) $426,775
10.0 12 120 $1,615 $6,394 $401 $1,442 ($3,350) $6,503 12.2% $304.29
20.0 468 9,360 $62,999 $249,384 $31,285 $56,248 ($130,667) $269,250 12.2% $352.88
30.0 696 20,880 $93,691 $370,879 $69,790 $83,651 ($194,325) $423,686 12.2% $401.46
40.0 180 7,200 $24,230 $95,917 $24,065.68 $21,634 ($50,257) $115,590 12.2% $450.05 Total - Roll-Offs 1,356 37,560 $182,536 $722,574 $125,543 $162,976 ($378,599) $815,029 Unit Costs Applied to Rates $134.61/Lift $532.87/Lift $3.34/CY $120.19/Lift ($279.20)/Lift Total Roll-offs and Compactors 1,860 88,572 $250,381 $991,141 $296,048 $ 223,551 ($519,317) $1,241,804 Target Revenue $250,381 $991,141 $296,048 $ 223,551 ($519,317) $1,241,804 Less Non-Rate
Rev.
Summary of 2022 ROLL-OFFS (Compactors, Roll-offs, Unscheduled):
Roll-off
Compactors
Not Recycle
Size Total
Lifts/yr.
Total Vol.
(CY/yr.) Type (All are Unscheduled)
Cost Allocation Basis
Admin. Roll-Off
Collection
Transfer
Station All Other Costs1
Rate
Adjustment
(Same as Front
Load
Compactors)
Total Annual
Costs
Rate 2(Current
Rates plus Rate
Adjustment)
($/lift)
Roll-offs
Not Recycle Packet Pg. 678 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 35
Commercial Organics Rates – The City is implementing a new commercial organics program, like many other California communities, and needs separate disposal rates for commercial organics due to new State requirements on how it is handled and disposed. Based on the cost information provided by the City, these rates were calculated using the following components: (1) commercial collection costs per lift, and; (2) disposal costs per cubic yard, with adjustments made for the higher densities of commercial food waste vs. trash or general municipal solid waste. The new rates for commercial organics are shown in Figure 40 and Figure 41.
Figure 40. Monthly Rates for 1 and 2 CY Food Waste by No. of Pickups Per Week Figure 41. Monthly Rates for 48 and 65 Gallon Food Waste by No. of Pickups Per Week Summary of 2023/24 48- and 65-gal. Carts for Foodwaste Collection:
Foodwaste 48-Gal. Cart $25.90 $2.80 $1.04 $0.17 $37.39 $29.91 15.5% $59.82 $89.72 $119.63 $149.54 $179.45 Foodwaste 65-Gal. Cart $28.34 $3.79 $1.18 $0.17 $41.86 $33.49 18.2% $66.98 $100.46 $133.95 $167.44 $200.93 6 % Increase
vs. SFR
Proposed
Resid. Rate
Add'l.
Disposal Cost
Container Cost
($/week) Container Type 4 5
1 Unsched. Rates
3 Add'l. Costs
Per CY
2 3
Monthly Rates for 48- and 65-Gal. Foodwaste Carts
by No. of Pickups Per Week
1 Packet Pg. 679 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 36
5. Recommendations and Next Steps
5.1 Consultant Recommendations
NBS recommends the City take the following actions:
• Approve and Accept this Study: NBS recommends the City Council formally approve and adopt this Study and its recommendations, including the documentation of rate calculations included in the appendices, and proceed with the next steps outlined below to implement the proposed rates. This will provide documentation of the rate study analyses and the basis for analyzing potential changes to future rates.
• Implement Recommended Levels of Rate Increases and Proposed Rates: Based on successfully meeting the Prop 218 procedural requirements, the City should proceed with implementing the four-year schedule of proposed rates and rate increases previously shown in Figure 12, Figure 19, Figure 34, Figure 37, Figures 39-41, and the additional solid waste commercial rate schedules included in the Appendices. This will help ensure the continued financial health of City’s utilities.
5.2 Next steps
Annually Review Rates and Revenue – Any time an agency adopts new utility rates or rate structures, those new rates should be closely monitored over the next several years to ensure the revenue generated is sufficient to meet the annual revenue requirements. Many of the solid waste programs are still being developed and costs may change as they are rolled out over the next year or two. Changing economic and water consumption patterns also underscore the need for this review, as well as potential and unseen changing revenue requirements — particularly those related to environmental regulations that can significantly affect capital improvements and repair and replacement costs.
Note: The attached Technical Appendices provide more detailed information on the analysis of the financial plan, revenue requirements, cost-of-service, and the rate design analyses that have been summarized in this report.
5.3 NBS’ Principal Assumptions and Considerations
In preparing this report and the opinions and recommendations included herein, NBS has relied on several principal assumptions and considerations regarding financial matters, conditions, and events that may occur in the future. This information and these assumptions, including the City’s budgets, capital improvement costs, customer accounts and consumption, and information from City staff were provided by sources we believe to be reliable, although NBS has not independently verified this data.
While we believe NBS’ use of such information and assumptions is reasonable for the purpose of this report and its recommendations, some assumptions will invariably not materialize as stated herein and may vary significantly due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary from those projected to the extent that actual future conditions differ from those assumed by us or provided to us by others.
Packet Pg. 680 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 37
Technical Appendices
These Appendices contain:
• Funding for Storm Drain Maintenance
• Appendix A: Water Rate Study Tables and Figures
• Appendix B: Wastewater Rate Study Tables and Figures
• Appendix C: Solid Waste Rate Study Tables and Figures Utility Nexus for Storm Drain Maintenance Funding
Each utility is allocated a small portion of the storm drain maintenance costs based on the following basis:
• Wastewater: Inflow and infiltration into the sewer causes the system to convey water beyond its capacity leading to the potential for overflows, subsequent discharges to waterways and potentially fines and enforcement options. Keeping the storm drain system free of debris and in good working order prevents flooding of the streets thereby reducing inflow of water into the sewer through manholes leading to capacity issues.
• Solid Waste: Much of the debris that enters the storm drain system is trash, leaves and other yard or tree waste. This material should be captured in bins, dumpsters and roll offs to be buried or recycled. This debris gets into the storm drain system and causes backups and deterioration of the system. The storm drain crews clean and dispose of the debris which would otherwise be collected by the Solid Waste Utility.
• Water: Storm drains collect rain and other surface water that ultimately gets discharged into local waterways and either replenishes the aquifers or drains to the River. Aquifers are used as a source of drinking water through wells and as is the River through Pump House 1. In addition, overspray from sprinklers in the summertime reacts with the summer sun and produces algae in gutters and storm drain facilities. It also leads to unseasonal growth in channels, culverts and debris collection areas. These facilities need to be cleaned by storm drain crews.
Funding Proportion:
Proportion of Maintenance Operations funded by Storm Drain Utility: 65% Proportion of Maintenance Operations funded by other Utilities: 35% • Allocation to Wastewater = 55% of 35% = 19.25%
• Allocation to Solid Waste = 25% of 35% = 8.75%
• Allocation to Water = 20% of 35% = 7.0%
Packet Pg. 681 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 38
Appendix A. Water Rate Study Tables and Figures
Packet Pg. 682 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates)
CITY OF REDDING
WATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Actuals 2
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Sources of Water Funds
Rate Revenue Under Prevailing Rates $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660 $ 28,527,660NonRate Revenue 462,610 413,460 422,222 433,290 444,674Interest Earnings 3 585,903 450,983 404,016 Total Sources of Funds $ 28,990,270 $ 28,941,120 $ 29,535,785 $ 29,411,933 $ 29,376,350 Uses of Water Funds
Operating Expenses:
WTR GENERAL & ADMIN (Division 861) 5,985,490 $ 2,960,880 $ 3,081,358 $ 3,206,830 $ 3,337,508 $ WTR PRODUCTION (Division 862) 1,770,000 1,790,000 988,374 1,017,617WATER TREATMENT (Division 863) 8,156,726 7,843,000 8,458,108 8,771,312WTR DISTRIBUTION (Division 864) 7,117,590 8,048,500 8,376,744 8,730,130 9,098,809 Subtotal: Operating Expenses $ 20,622,380 13,103,080 $ 21,404,828 $ 21,383,442 $ 22,225,245 $ Other Expenditures:
Existing Debt Service $ 733,200 $ $ $ $ Future Debt Service (SRF Loan) 2,016,471 2,016,471RateFunded Capital Expenses 15,744,888 7,200,000 8,200,000 9,200,000 Subtotal: Other Expenditures $ 16,478,088 $ 7,200,000 $ 10,216,471 $ 11,216,471 $ Total Uses of Water Funds $ 29,581,168 $ 20,622,380 $ 28,604,828 $ 31,599,913 $ 33,441,716Increase/Decrease to Reserves (Before Rate Increases) $ 14,298,890 $ 930,957 8,318,740 $ (2,187,980) $ (4,065,366) $ Plus: Revenue from Rate Increases 4 927,149 3,842,823 5,974,339 8,259,402Increase/Decrease to Reserves (After Rate Increases) (590,898) $ 9,245,889 $ 4,773,780 $ 3,786,359 $ 4,194,036 $ Net Revenue Req't. (Total Uses less NonRate Revenue) $ 20,208,920 29,118,558 $ 27,596,703 $ 30,715,640 $ 32,593,026 $ Total Rate Revenue After Rate Increases $ 29,454,809 28,527,660 $ 32,370,483 $ 34,501,999 $ 36,787,062 $ Projected Annual Rate Revenue Increase 0.00% 12%/18%* 6.50% 6.50% 6.50%Cumulative Increase from Annual Revenue Increases 0.00% 12%/18% 13.42% 20.79% 28.65%Debt Coverage Without Rate Increase 5 21.66 N/A N/A 3.98 3.54Debt Coverage With Rate Increase 5 21.66 N/A N/A 6.94 7.64 * Single Family Residents (SFR) 5/8" fixed meter charge is 12% and all variable rates are 18%. Larger meter fixed charges percent increases vary. 2 Financial Plan Alternatives CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 1 Minimal Rate Increases 0.00% 5.00% 6.00% 7.00% 7.00%2 Approximate Inflation Rate 0.00% 6.50% 6.50% 6.50% 6.50%3 Moderate Rate Increases 0.00% 8.00% 8.00% 8.00% 8.00% 100% CIP Funding ($30M SRF Loan)
Projected (4Year Rate Period)
RATE REVENUE REQUIREMENTS SUMMARY 1
Insert policy choice in box to right, based on options listed below CIP Fundng Policy Choice Selected:
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 683 Financial Plan, 1 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 2 : RESERVE FUND SUMMARY Actuals
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Total Beginning Cash 1 $ 49,647,074UnRestricted Reserves:Operating ReserveBeginning Reserve Balance 2 $ 30,934,931 $ 6,870,000 3,275,770 $ 7,130,000 $ 7,130,000 $ Plus: Net Cash Flow (After Rate Increases) (590,898) 9,245,889 4,773,780 3,786,359 4,194,036Plus: Expected Savings @ 1.5% Pers/O&M 89,782 70,963 73,070 62,928 65,327Plus: Expected Savings @ 3% Capital 494,547 580,152 867,943 696,309 751,247 Less: Transfer Out to Pump House 1 Fund3Less: Transfer Out to Rolling Stock Reserve $ $ $ $ $ Less: Transfer Out to Capital Replacement Reserve (2 (6,302,774) 7,652,592) (5,454,793) (4,545,597) (4,730,611) Ending Operating Reserve Balance $ 6,870,000 3,275,770 $ 7,130,000 $ 7,130,000 $ 7,410,000 $ Target Ending Balance, 120 days Operating Expenses 4 $ 6,870,000 3,275,770 $ 7,130,000 $ 7,130,000 $ 7,410,000 $ Capital Rehabilitation & Replacement ReserveBeginning Reserve Balance $ 5,000,000 $ 18,876,975 31,912,592 $ 12,900,348 $ 12,735,635 $ Plus: Grant Proceeds Plus: Transfer of Operating Reserve Surplus 27,652,5 6,302,774 92 5,454,793 4,545,597 4,730,611Less: Use of Reserves for Capital Projects (740,000) (19,338,391) (11,431,421) (4,710,309) (5,541,580) Ending Capital R&R Reserve Balance $ 18,876,975 31,912,592 $ 12,900,348 $ 12,735,635 $ 11,924,666 $ Target Ending Balance, 5% Minimum of Assets 5 $ 4,860,000 4,260,000 $ 5,720,000 $ 6,760,000 $ 7,850,000 $ Target Ending Balance, 10% of Assets 5 $ 9,730,000 8,510,000 $ 11,440,000 $ 13,510,000 $ 15,710,000 $ $ 25,746,975 35,188,362 $ 20,030,348 $ 19,865,635 $ 19,334,666 $ Minimum Target Ending Balance $ 11,730,000 7,535,770 $ 12,850,000 $ 13,890,000 $ 15,260,000 $ Preferred Target Ending Balance $ 16,600,000 11,785,770 $ 18,570,000 $ 20,640,000 $ 23,120,000 $ Ending Surplus/(Deficit) vs. Minimum Reserve Targets 27,652,592 $ 14,016,975 $ 7,180,347 $ 5,975,635 $ 4,074,666 $ Days Cash on Hand 929 456 342 310 292
Rolling Stock Reserve (919370)Beginning Reserve Balance6 $ 236,242 $ 142,202 139,985 $ 144,455 $ 146,743 $ Plus: Sale of Rolling Stock (100,000) Plus: Transfer of Operating Reserve Surplus Plus: Interest Earnings 2,218 3,743 2,253 2,288 2,325Less: Use of Reserves for Vehicle Purchase Ending Rolling Stock Reserve Balance $ 142,202 139,985 $ 144,455 $ 146,743 $ 149,068 $ Target Ending Balance 7 $ 520,000 500,000 $ 540,000 $ 560,000 $ 580,000 $ Pump House 1 ReserveBeginning Reserve Balance8 $ 11,237,362 $ 11,237,362 11,237,362 $ 8,437,362 $ 5,637,362 $ Plus: Transfer of 6% rate revenue Less: Use of Reserves for Capital Purchase (2,800,000) (2,800,000) (2,800,000) Ending Pump House 1 Reserve Balance $ 11,237,362 11,237,362 $ 8,437,362 $ 5,637,362 $ 2,837,362 $ Target Ending Balance 9 $ $ $ $ $ Ending Balance O&M and Cap R&R Reserves
SUMMARY OF CASH ACTIVITY Projected (4Year Rate Period) Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 684 Financial Plan, 2 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 3 : RESERVE FUND SUMMARY, cont.
Actuals
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Restricted Reserves:Capacity Fee ReserveBeginning Reserve Balance 10 $ 2,238,539 $ 113,779 2,185,556 $ 52,440 $ 51,066 $ Plus: Capacity Fee Revenue 1,562,110 1,499,320 1,572,945 1,583,489 1,594,050Plus: Interest Earnings 44,977 29,513 61,264 66,264 71,869 Less: Use of Reserves for Capital Projects (1,630,73 (3,792,643) 8) (1,747,989) (1,702,193) (1,716,985)Plus: Expected Savings @3% Capital 48,922 113,779 52,440 51,066 51,510 Ending Capacity Fee Fund Balance 2,185,556 $ 113,779 $ 52,440 $ 51,066 $ 51,510 $ Annual Interest Earnings Rate 11 1.58% 1.58% 1.58% 1.58% 1.58%
1. Beginning cash balance is per FY 2021/22 ACFR. Source file: ACFR Final at 12292022/pdf, page 44..2. Beginning Operating Reserve balance for FY 2022/23 is the total beginning cash net of cash allocated to reserved funds via proforma.
Source file: REDDING_Water Proforma Working Version 2023 FINAL VERSION.xlsx.
3. 6% of all rate revenue is allocated to the Pump House 1 reserve until FY 2029/30 when project is completed.4. The City maintains 90 days or 25% of Operating Expenses as an Operating reserve. 5. The City has a 5% minimum reserve requirement and a 15% preferred reserve requirement for Capital Rehabilitation and Replacement.6. Beginning Rolling Stock Reserve balance for FY 2022/23 is per water proforma.
City policy is to transfer 6% of rate revenue to the Pump House 1 reserve fund. Source file: REDDING_Water Proforma Working Version 2023 FINAL VERSION.xlsx.
7. Target balance for the rolling stock reserve is set equal to $500K.8. Beginning Pump House 1 Reserve balance for FY 2022/23 is per water proforma.
Source file: REDDING_Water Proforma Working Version 2023 FINAL VERSION.xlsx.
9. Target balance for Pump House 1 Reserve is zero. 10. Beginning Capacity Fee Reserve balance for FY 2022/23 is per water proforma.
Source file: REDDING_Water Proforma Working Version 2023 FINAL VERSION.xlsx.
11. Interest earning rate based on the City's Pooled Cash Interest Rate.
Source file: REDDING_Water Proforma Working Version 2023 FINAL VERSION.xlsx.
SUMMARY OF CASH ACTIVITY Projected (4Year Rate Period) Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 685 Financial Plan, 3 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYRate Adjustment Charts and Report TablesCHART 1 $0
$5,000,000
$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,000 2024 2025 2026 2027
Fiscal Year Ending June 30
Water Revenue Requirements vs.
Revenue Under Existing and Increased Rates
Reserve Funded Capital ExpensesRate Funded Capital ExpensesDebt ServiceO&M ExpensesRevenues under Existing RatesRevenues under Increased Rates Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Charts and Tables, 4 of 37
Packet Pg. 686
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYRate Adjustment Charts and Report TablesCHART 2 $35.19 Mil.
$25.75 Mil.
$20.03 Mil. $19.87 Mil.
$
$5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2024 2025 2026 2027
Fiscal Year Ending June 30
Water Utility Ending Cash Balances vs.
Recommended Reserve Targets
Ending O&M & Cap./R&R BalanceMinimum Target Reserve BalancePreferred Target Reserve Balance Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Charts and Tables, 5 of 37
Packet Pg. 687
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYRate Adjustment Charts and Report TablesCHART 3
6.50% 6.50% 6.50% 6.50%
0%1%2%3%4%5%6%7%
2024 2025 2026 2027
Fiscal Year Ending June 30
Projected Increases to Rate Revenue
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Charts and Tables, 6 of 37
Packet Pg. 688
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYRate Adjustment Charts and Report Tables 456
342
310
292
50 100 150 200 250 300 350 400 450 500
2024 2025 2026 2027
Calendar Year
Number of Days Cash on Hand
Days Cash on Hand120 Day Operating Reserve Target150Days Cash on Hand Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Charts and Tables, 7 of 37
Packet Pg. 689
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYRate Adjustment Charts and Report TablesCHART 4 $23.13 Mil.
$30.68 Mil.
$24.91 Mil.
$26.76 Mil.
$. Mil.
$5. Mil.
$10. Mil.$15. Mil.$20. Mil.$25. Mil.$30. Mil.$35. Mil.
2024 2025 2026 2027
Calendar Year
Annual Capital Improvement Program Expenditures
Years 2024 2027
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Charts and Tables, 8 of 37
Packet Pg. 690
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 1
WATER RATE STUDYOperating Revenue and ExpensesTABLE 4 : REVENUE FORECAST 1SOURCES OF REVENUE: Water Division Basis CY 2024 CY 2025 CY 2026 CY 2027Operating RevenueResidential Revenue 1 $ 19,737,310 $ 19,874,214 $ 20,007,441 $ 20,140,871Commercial Revenue 1 8,790,350 8,851,323 8,910,657 8,970,083Damaged Meter Charges 1 MeteredIn City (Backflow) 1 117,960 118,778 119,574 120,372Bad Debt Writeoff 1 (56,150) (56,539) (56,918) (57,298)Fire Service 3 75,190 77,415 79,705 82,063Fire Hydrant Rental 3 70,000 70,000 72,071 74,203OffSite Charges 3 Service & Meter Install 3 29,000 29,858 30,741 31,651Paving Cut Fees 3 Misc Operating Revenues 3 Real Estate Rentals 3 157,740 162,407 167,212 172,160Sale of Property 3 2,950 3,037 3,127 3,220Misc. Revenue 3 16,770 17,266 17,777 18,303NonOperating RevenueInterest Income 2 See FPCapacity Fee Revenue 3 1 1,562,110 1,572,945 1,583,489 1,594,050 TOTAL: REVENUE $ 30,503,230 $ 30,720,704 $ 30,934,877 $ 31,149,678 TABLE 5 : REVENUE FORECAST SUMMARYREVENUE SUMMARY CY 2024 CY 2025 CY 2026 CY 2027Rate Revenue $ 28,527,660 $ 28,725,537 $ 28,918,098 $ 29,110,954NonRate Revenue 413,460 422,222 433,290 444,674Interest Income 3 Capacity Fee Revenue 1,562,110 1,572,945 1,583,489 1,594,050 TOTAL: REVENUE $ 30,503,230 $ 30,720,704 $ 30,934,877 $ 31,149,678 Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Exhibit 1 (O&M), 9 of 37 Packet Pg. 691 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 1
WATER RATE STUDYOperating Revenue and ExpensesTABLE 6 : OPERATING EXPENSE FORECAST 1WTR GENERAL & ADMIN (Division 861) Basis CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 584,740 $ 613,977 $ 644,676 $ 676,910Operating & Materials 3Prof Servcs/Consult 3 105,000 $ 108,107 111,305 114,598Specialized Srvcs/ Tech 3 5,000 $ 5,148 5,300 5,457Vehicle Fuel & Lubricant 3 1,000 $ 1,030 1,060 1,091Bank Service Fee 3 15,000 $ 15,444 15,901 16,371Communication Expense 3 4,500 $ 4,633 4,770 4,911Operating Material/ Supp 3 4,000 $ 4,118 4,240 4,366Small Equipment/Furniture 3 $ Advertisement/ Promotion 3 750 $ 772 795 819Water Use Efficiency 3 50,000 $ 51,479 53,002 54,571Books/ Dues/ Subscriptions 3 70,000 $ 72,071 74,203 76,399Civic Center Rent 3 57,000 $ 58,686 60,423 62,211Travel Expense 3 5,000 $ 5,148 5,300 5,457Employee Training 3 6,000 $ 6,178 6,360 6,548Safety Meetings/ Training 3 500 $ 515 530 546Computer Hardware <$5,000 3 $ Fiscal/ Paying Agent Fees 3 1,000 $ 1,030 1,060 1,091Cost Allocate Plan Reimbursement 4 $ Cost Allocation Reimb 4 $ Interdepartmental Charges 4 2,051,390 $ 2,133,022 2,217,903 2,306,161SUBTOTAL: GENERAL & ADMIN $ 2,960,880 $ 3,081,358 $ 3,206,830 $ 3,337,508TABLE 7 : OPERATING EXPENSE FORECAST, cont. 1WTR PRODUCTION (Division 862) Basis CY 2024 CY 2025 CY 2026 CY 2027Operating & Materials 3Purchased Water Rdg 3 $ 115,000 $ 115,000 $ 118,403 $ 121,906Purchased Water Buckeye 3 200,000 200,000 205,917 212,010Purchased Water Bella V 3 Purchased Water McConnell 3 500,000 500,000 100,000 102,959Purchased Water SDPUD 3 30,000 30,000 30,888 31,801Purchased Water Acid 3 480,000 500,000 75,000 77,219CVP Improvement Act Fee 3 225,000 225,000 231,657 238,511Wapa Foregone Power 3 220,000 220,000 226,509 233,211SUBTOTAL: PRODUCTION $ 1,770,000 $ 1,790,000 $ 988,374 $ 1,017,617 Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Exhibit 1 (O&M), 10 of 37 Packet Pg. 692 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 1
WATER RATE STUDYOperating Revenue and ExpensesTABLE 8 : OPERATING EXPENSE FORECAST, cont. 1WATER TREATMENT (Division 863) Basis CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 2,352,160 $ 2,469,768 $ 2,593,256 $ 2,722,919Operating & Materials 3Prof Servcs/Consult 3 130,000 50,000 51,479 53,002Vehicle Fuel & Lubricant 3 32,000 34,000 35,006 36,042Utility Expense 3 2,700,000 2,800,000 2,882,844 2,968,140CA/ Fed Regulatory Costs 3 100,000 110,000 113,255 116,605Communication Expense 3 22,000 22,000 22,651 23,321Operating Material/ Supp 3 1,100,000 1,200,000 1,235,505 1,272,060Water Treatment Chemical 3 350,000 375,000 386,095 397,519Software 3 30,000 32,000 32,947 33,922Land Rights So Pacific 3 5,700 5,700 5,869 6,042Rent Land 3 80,000 81,000 83,397 85,864Travel Expense 3 3,500 3,500 3,604 3,710Employee Training 3 15,000 15,000 15,444 15,901Safety Meetings/ Training 3 15,000 15,000 15,444 15,901OneTime Carry Over Costs 3 Interdepartmental Charges 4 907,640 943,758 981,314 1,020,364SUBTOTAL: WATER TREATMENT $ 7,843,000 $ 8,156,726 $ 8,458,108 $ 8,771,312 Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Exhibit 1 (O&M), 11 of 37 Packet Pg. 693 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 1
WATER RATE STUDYOperating Revenue and ExpensesTABLE 9 : OPERATING EXPENSE FORECAST, cont. 1WTR DISTRIBUTION (Division 864) Basis CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 2,914,470 $ 3,060,194 $ 3,213,203 $ 3,373,863Operating & Materials 3Specialized Srvcs/ Tech 3 300,000 300,000 308,876 318,015Vehicle Fuel & Lubricant 3 90,000 94,000 96,781 99,645Utility Expense 3 22,000 24,000 24,710 25,441Communication Expense 3 16,000 16,000 16,473 16,961Operating Material/ Supp 3 600,000 615,000 633,196 651,931Small Equip/ Furniture 3 Software 3 15,000 15,000 15,444 15,901Books/ Dues/ Subscriptions 3 2,000 2,000 2,059 2,120Maint Material/Supply 3 Property Tax 3 210 215 221 228Travel Expense 3 5,000 5,000 5,148 5,300Employee Training 3 15,000 15,000 15,444 15,901Safety Meetings/ Training 3 10,000 10,000 10,296 10,600Computer Hardware <$5,000 3 Cost Allocate Plan ReimbursementCost Allocation Reimb 4 Cost Allocation Streets 4 Prepared by NBS www.nbsgov.com | Tollfree: 800.676.7516 Exhibit 1 (O&M), 12 of 37 Packet Pg. 694 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 1
WATER RATE STUDYOperating Revenue and ExpensesTABLE 10 : OPERATING EXPENSE FORECAST, cont. 1WTR DISTRIBUTION (Division 864) Basis CY 2024 CY 2025 CY 2026 CY 2027Interdepartmental Charges 4 4,058,820 4,220,335 4,388,277 4,562,903Fix Chg Bldg Maintenance 4 Fix Chg Utility Customer 4 Fix Chg Utility Field Op 4 Fix Chg Fleet Maint 4 Fix Chg Records Mgmt 4 Fix Chg Communication 4 Fix Chg Volunteer Serv 4 Fix Chg Employer Service 4 Et/ USA Locate 4 Storm Drain Allocation 4 SUBTOTAL: DISTRIBUTION $ 8,048,500 $ 8,376,744 $ 8,730,130 $ 9,098,809 GRAND TOTAL: OPERATING EXPENSE FORECAST$ 20,622,380 $ 21,404,828 $ 21,383,442 $ 22,225,245 Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Exhibit 1 (O&M), 13 of 37 Packet Pg. 695 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 1
WATER RATE STUDYOperating Revenue and ExpensesTABLE 11 : FORECASTING ASSUMPTIONSECONOMIC VARIABLES 4 Basis CY 2024 CY 2025 CY 2026 CY 2027Customer Growth 5 1 0.69% 0.69% 0.67% 0.67%CCI 10 Year Average 2 3.42% 3.42% 3.42% 3.42%CPI 10 Year Average 3 2.96% 2.96% 2.96% 2.96%Blended 4 3.98% 3.98% 3.98% 3.98%Personnel 5 5.00% 5.00% 5.00% 5.00%Other 6 0.00% 0.00% 0.00% 0.00%No Escalation 13 0.00% 0.00% 0.00% 0.00%
1. The FY 2012/23 revenues and expenses are per the City's source file:
Copy of Water Proforma Working Version 2023 Corrected 042823.xlsx
2. Interest income is calculated in the Financial Plan and excluded from this table.3. Connection fees, excluding interest, for 20182030 provided by the City.
Source file: Copy of Water Proforma Working Version 2023 Corrected 042823.xlsx , Rev tab.
4. Inflation factors per proforma. Source file:
Copy of Water Proforma Working Version 2023 Corrected 042823.xlsx , Assumptions tab.
5. Customer growth rate was provided by the City through FY 2030/31.
Source file: Copy of Water Proforma Working Version 2023 Corrected 042823.xlsx, Population Project tab.
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Exhibit 1 (O&M), 14 of 37 Packet Pg. 696 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 2
WATER RATE STUDYCapital Improvement Plan ExpendituresPreliminary Draft Do Not Cite or DistributeTABLE 12 : CAPITAL FUNDING SUMMARYCAPITAL FUNDING FORECAST Budget CY 2024 CY 2025 CY 2026 CY 2027 FY 2027/28
Grants $ $ $ $ $ Use of Capacity Fee Reserves 3,792,643 1,747,989 1,702,193 1,716,985 1,733,651 SRF Loan Funding 7,500,000 7,500,000 7,500,000 7,500,000Use of Future Revenue Bond Proceeds Use Pump House 1 Reserves 2,800,000 2,800,000 2,800,000 2,800,000Use of Capital Rehabilitation and Replacement Reserve 19,338,391 11,431,421 4,710,309 5,541,580 7,930,387Rate Revenue 7,200,000 8,200,000 9,200,000 7,930,387 Total Sources of Capital Funds $ 23,131,034 $ 30,679,409 $ 24,912,502 $ 26,758,564 $ 27,894,424 Uses of Capital Funds:
Estimated Pump House 1 Expenditures $ $ 10,000,000 $ 11,000,000 $ 12,000,000 $ 13,000,000Total Other Project Costs $ 23,131,034 $ 20,679,409 $ 13,912,502 $ 14,758,564 $ 14,894,424Total CIP Costs $ 23,131,034 $ 30,679,409 $ 24,912,502 $ 26,758,564 $ 27,894,424Capital Funding Surplus (Deficiency) $ $ $ $ $ SRF Loan Funding $ $ 30,000,000 $ $ Future Revenue Bond Proceeds $ $ $ $ $ CAPITAL IMPROVEMENT PROGRAM FUNDING OPTIONS 1 100% CIP Funding ($40M SRF Loan) Reserve Fund. CIP $48,952,0872 100% CIP Funding ($30M SRF Loan) RateFunded CIP $32,530,3873 100% CIP Funding (No SRF Loan)4 50% Other CIP Funding (No SRF Loan) 2 Projected (4Year Rate Period)
Funding Sources:
Financial Plan Option Selected on Financial Plan Worksheet:
CIP Fundng Policy Choice
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 697 Exhibit 2 (CIP), 15 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Exhibit 2
WATER RATE STUDYCapital Improvement Plan ExpendituresPreliminary Draft Do Not Cite or DistributeCAPITAL IMPROVEMENT PROGRAMTABLE 13 : CAPITAL IMPROVEMENT PROGRAM COSTS (in CurrentYear Dollars ) 1 2024 2025 2026 2027 2028
Storm Drain Allocation $ 133,500 $ 138,060 $ 142,777 $ 147,654 $ 152,698Structures and Improvements 296,044 19,210 19,866 20,545 21,247Well Pumping Equipment 154,800 32,220 33,321 34,459 35,636Pump Station Equipment 555,777 231,920 239,843 248,036 256,509Pump House No. 1 Improvements 246,369 62,480 64,614 66,821 69,104Pump House 1 Replacement Environmental 1,081,259Transmission and Distribution Mains 224,178 38,660 39,981 41,346 42,759Services 34,810 9,660 9,990 10,331 10,684Meters 463,910 496,220 350,000 361,956 374,321Hydrants 7,250 7,500 7,756 8,021 8,295Buckeye Hydrants 10,920 2,420 2,503 2,588 2,677Land AcquAdmin 276,840 74,990 77,552 80,201 82,941Magnolia Area Improvements 340,165Electrical Control System Upgrade 334,304 83,740 86,601 89,559 92,618Project Coordination 62,473 62,490 64,625 66,833 69,116Water Line Replacement 6,300,000 6,000,000 9,000,000 7,000,000Bechelli ReplacementLake Blvd Keskwick to Masonic 1,117,053HMGP FWTP Generator 1,066,300HMGP PH1 GeneratorHMGB BWTP SolidsMasonic to Hilltop 80,698Athens Area WM Replacement 38,040 5,000,0002023 WM Replacement 3,502,028NWA WM Replacement 4,793Cascade Racquet Club 27,649MS4 System Maintenance 130,510Well Redevelopment 226,778 142,210 142,210Well Upgrades 331,410 74,740 77,293 79,934 82,664Wellhead Treatment EW12 7,726,347Master Water Plan Update 54,800 56,670 25,000 25,854 26,737SubTotal: Capital Improvement Program Costs $ 18,529,004 $ 12,833,190 $ 7,241,720 $ 10,426,349 $ 8,328,006 Project Description
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 698 Exhibit 2 (CIP), 16 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Exhibit 2
WATER RATE STUDYCapital Improvement Plan ExpendituresPreliminary Draft Do Not Cite or DistributeTABLE 14 : CAPITAL IMPROVEMENT PROGRAM COSTS, cont. (in CurrentYear Dollars ) 1 2024 2025 2026 2027 2028
Foothill Upgrades $ 941,235 $ 4,097,830 $ 250,000 $ 258,540 $ 267,372Foothill Control BuildingCypress Pump Station R&R 3,011,606 2,335,000Buckeye Treatment Plant 984,100 134,470 139,064 143,814 148,727Old Alturas WideningDiestelhorst to DowntownBechelli ATP 82,035Hill 900 Resv. New 2.0 MG Reservoir & Rehab of Ex. Conc Res. RS02 205,150 2,000,000Enterprise Reservoir Repairs 100,000Reservoir Maintenance 1,475,000 500,000 500,000AHSC State Dri Loop Grant 50,000Old Alturas Bridge ImprovementsPC Equipment 76,370 16,500 16,500Software 14,420Equipment 25,00016" Twin View B8V24 to Oasis Cntr 5630'24" Lake Oasis to Northpoint 9090'Foothill WTP Floc Basins & PH2Hill 900 24" WM to Placer 2,000,000Ranchettes 12" WM 1,500,000Well Upgrades OrthopolyphosphateReplace RoofsStillwater WellFig Tree Well Pump Station 3 & Pump Station 4 1,000,000Linden Pump Station Railroad Booster Pump Station 500,000S Bonnyview Pump Station Upgrades 1,300,000Palisades PRV1 & PRV2 UpgradesBuckeye Reservoir Booster Pump Station 1,500,000Buckeye 2MG ReservoirStillwater BP WMRailroad 20" WM (Canyon Hollow Bridge Replacement)Cascade NEW 12" WM 1,400,000Benton 16" WM 500,000West/Court 12" WMFuture Projects SubTotal: Capital Improvement Program Costs $ 3,928,311 $ 7,243,906 $ 6,265,564 $ 3,902,354 $ 6,132,599Total: Capital Improvement Program Costs $ 22,457,315 $ 20,077,097 $ 13,507,284 $ 14,328,703 $ 14,460,605
1. CIP expenses found in source file: Redding_Water Proforma Working Version 2023 FINAL VERSION.xlsx, Capital Project tab.
Project Description
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 699 Exhibit 2 (CIP), 17 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Exhibit 2
WATER RATE STUDYCapital Improvement Plan ExpendituresPreliminary Draft Do Not Cite or DistributeTABLE 15 : CAPITAL IMPROVEMENT PROGRAM COSTS (in FutureYear Dollars ) 1 2024 2025 2026 2027 2028
Storm Drain Allocation $ 137,505 $ 142,202 $ 147,060 $ 152,084 $ 157,279Structures and Improvements 304,925 19,786 20,462 21,161 21,884Well Pumping Equipment 159,444 33,187 34,320 35,493 36,705Pump Station Equipment 572,450 238,878 247,038 255,477 264,204Pump House No. 1 Improvements 253,760 64,354 66,552 68,826 71,177Pump House 1 Replacement Environmental 1,113,697 10,000,000 11,000,000 12,000,000 13,000,000Transmission and Distribution Mains 230,903 39,820 41,180 42,587 44,042Services 35,854 9,950 10,290 10,641 11,005Meters 477,827 511,107 360,500 372,815 385,551Hydrants 7,468 7,725 7,989 8,262 8,544Buckeye Hydrants 11,248 2,493 2,578 2,666 2,757Land Acqu Admin 285,145 77,240 79,878 82,607 85,429Magnolia Area Improvements 350,370 Electrical Control System Upgrade 344,333 86,252 89,199 92,246 95,397Project Coordination 64,347 64,365 66,564 68,838 71,189Water Line Replacement 6,489,000 6,180,000 9,270,000 7,210,000Bechelli Replacement Lake Blvd Keskwick to Masonic 1,150,565 HMGP FWTP Generator 1,098,289 HMGP PH1 Generator HMGB BWTP Solids Masonic to Hilltop 83,119 Athens Area WM Replacement 39,181 5,150,000 2023 WM Replacement 3,607,089 NWA WM Replacement 4,936 Cascade Racquet Club 28,478 MS4 System Maintenance 134,425 Well Redevelopment 233,581 146,476 146,476 Well Upgrades 341,352 76,982 79,612 82,332 85,144Wellhead Treatment EW12 7,958,137 Master Water Plan Update 56,444 58,370 25,750 26,630 27,539SubTotal: Capital Improvement Program Costs $ 19,084,874 $ 23,218,186 $ 18,458,972 $ 22,739,139 $ 21,577,846 Project Description
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 700 Exhibit 2 (CIP), 18 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Exhibit 2
WATER RATE STUDYCapital Improvement Plan ExpendituresPreliminary Draft Do Not Cite or DistributeTABLE 16 : CAPITAL IMPROVEMENT PROGRAM COSTS, cont. (in FutureYear Dollars ) 1 2024 2025 2026 2027 2028
Foothill Upgrades $ 969,472 $ 4,220,765 $ 257,500 $ 266,296 $ 275,393Foothill Control Building Cypress Pump Station R&R 3,101,954 2,405,050 Buckeye Treatment Plant 1,013,623 138,504 143,236 148,129 153,189Old Alturas Widening Diestelhorst to Downtown Bechelli ATP 84,496 Hill 900 Resv. New 2.0 MG Reservoir & Rehab of Ex. Conc Res. RS02 211,305 2,060,000Enterprise Reservoir Repairs 103,000 Reservoir Maintenance 1,519,250 515,000 515,000AHSC State Dri Loop Grant 51,500 Old Alturas Bridge Improvements PC Equipment 78,661 16,995 16,995Software 14,853 Equipment 25,750 16" Twin View B8V24 to Oasis Cntr 5630' 24" Lake Oasis to Northpoint 9090' Foothill WTP Floc Basins & PH2 Hill 900 24" WM to Placer 2,060,000 Ranchettes 12" WM 1,545,000 Well Upgrades Orthopolyphosphate Replace Roofs Stillwater Well Fig Tree Well Pump Station 3 & Pump Station 4 1,030,000 Linden Pump Station Railroad Booster Pump Station 515,000 S Bonnyview Pump Station Upgrades 1,339,000Palisades PRV1 & PRV2 Upgrades Buckeye Reservoir Booster Pump Station 1,545,000 Buckeye 2MG Reservoir Stillwater BP WM Railroad 20" WM (Canyon Hollow Bridge Replacement) Cascade NEW 12" WM 1,442,000Benton 16" WM 515,000West/Court 12" WM Future Projects 2 SubTotal: Capital Improvement Program Costs $ 4,046,160 $ 7,461,223 $ 6,453,531 $ 4,019,425 $ 6,316,577Total: Capital Improvement Program Costs $ 23,131,034 $ 30,679,409 $ 24,912,502 $ 26,758,564 $ 27,894,424
1. CIP expenses found in source file: Redding_Water Proforma Working Version 2023 FINAL VERSION.xlsx, Capital Project tab.2. Future projects, beyond the initial 5year planning period are estimated at the average of previous 5year CIP.
FORECASTING ASSUMPTIONS
2024 2025 2026 2027 2028
3.00% 3.00% 3.00% 3.00% 3.00%
Cumulative Construction Cost Multiplier from 2023 1.00 1.00 1.00 1.00 1.00
1. The annual Construction Cost Inflation percentage is the 10 year average change in the Construction Cost Index for 20122023. Source: Engineering News Record website (http://enr.construction.com).
Annual Construction Cost Inflation, Per Engineering News Record 1Project DescriptionEconomic Variables Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Packet Pg. 701 Exhibit 2 (CIP), 19 of 37 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Exhibit 3
WATER RATE STUDYDebt ServiceTABLE 17 : SUMMARY OF EXISTING DEBT OBLIGATIONSEXISTING DEBT OBLIGATIONS ActualsAnnual Repayment Schedules: CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Water Share Refunding Revenue Bonds, 2013 Series 1 Principal Payment 2 $ 705,000 $ $ $ $ Interest Payment 28,200 Subtotal: Annual Debt Service $ 733,200 $ $ $ $ Coverage Requirement ($Amnt above annual payment) $ $ $ $ $ Reserve Requirement (total fund balance) 4 $ $ $ $ $ Grand Total: Existing Annual Debt Service $ 733,200 $ $ $ $ Principal Amount $30,000,000Principal Payment $ $ $ $ 1,116,471 $ 1,149,965Interest Payment $ $ $ $ 900,000 $ 866,506 Subtotal: Annual Debt Service $0 $0 $0 $ 2,016,471 $ 2,016,471 Coverage Requirement ($Amnt above annual payment) (7)$ $ $ $ $ Reserve Requirement (total fund balance) (7) $ $ $ $ $ Water Revenue Refinance Bonds 2015 $47,740,000 (8)Principal Payment (9) $ $ $ $ $ Interest Payment $ $ $ $ $ Subtotal: Annual Debt Service $ $ $ $ $ Coverage Requirement ($Amnt above annual payment) (10) $ $ $ $ $ Reserve Requirement (total fund balance) (11) $ $ $ $ $ Debt Service Allocated to Rate Revenue $ 355,895 $ $ $ $ Debt Service Allocated to Wastewater Utility $ 377,305 $ $ $ $ Grand Total: Existing Annual Coverage Requirement $ $ $ $ $ Grand Total: Existing Debt Reserve Target $ $ $ $ $ 1. Official Statement describes the bond was used to refund 2003A Water Certificates & 2002 Wastewater Certificates. Source file: 2013 Wtr_WW Scanned pgs of Official Statement.pdf Source file: 2013 Wtr_WW Scanned pgs of Official Statement.pdf
2. Full Debt Service Schedule from Official Statement. Water's share developed as net of Wastewater payment. Service, page 1 .
Revenue bonds, page 5 and Wastewater Debt. Source files: Water & Wastewater 2013 Refunding New SRF Loan Funding
Projected (4Year Rate Period)
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Exhibit 3 (Debt), 20 of 37 Packet Pg. 702 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 4
WATER RATE STUDYProjected Water Rates Under Existing Rate ScheduleTABLE 18 :
Water Rate Schedule Current Rate 1
Monthly Per Unit Rate By Meter Size
5/8" $24.923/4" $33.301" $50.081 1/2" $92.012" $142.323" $276.504" $427.456" $846.768" $1,349.9310" N/A12" Commodity Charge 2
Uniform Rate All Customers $1.590
1. Rates are effective rates as of July 2, 2022, source: Reso 2020015 Water Utility Rate Schedule.pdf.2. Rates are per ccf which is 748 gallons. **No Fire Meters or Rates
NBS - Local Government SolutionsWeb: www.nbsgov.com Toll-Free:800.676.7516 Exhibit 4 (Current Rates), 21 of 37
Packet Pg. 703
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisTABLE 19 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSISClassification of Expenses Volumetric CY 2024 COM CAP CA COM CAP CA
WTR GENERAL & ADMIN (Division 861)
Personnel $ 584,740 $ 116,948 $ 348,856 $ 118,936 20% 60% 20%Full Time Regular $ $ $ $ 50% 43% 7%Part Time Temporary 50% 43% 7%Accrued Pay Vacation 50% 43% 7%Vacation Pay Back 50% 43% 7%Workers Comp Ins 50% 43% 7%Group Ins Program 50% 43% 7%Public Agency Ret Sys 50% 43% 7%Retirement Program 50% 43% 7%Medicare 50% 43% 7%Ent Anderson Groundwater NEW 50% 43% 7%Water Utility NEW 50% 43% 7%Storm Drainage Utility NEW 50% 43% 7%Electric Resources NEW 50% 43% 7%City Attorney 50% 43% 7%Planning 50% 43% 7%PW/Engr & Administration NEW 50% 43% 7%Street Division NEW 50% 43% 7%Water Utility NEW 50% 43% 7%Solid Waste Collect NEW 50% 43% 7%Misc Pay Adjustment 50% 43% 7% Budget Categories
Total Revenue
Requirements Commodity Capacity
Fixed
Customer
Basis of Classification
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 22 of 37 Packet Pg. 704 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisOperating & MaterialsProf Servcs/Consult 105,000 52,500 45,150 7,350 50% 43% 7%Specialized Srvcs/ Tech 5,000 2,500 2,150 350 50% 43% 7%Vehicle Fuel & Lubricant 1,000 500 430 70 50% 43% 7%Bank Service Fee 15,000 7,500 6,450 1,050 50% 43% 7%Communication Expense 4,500 2,250 1,935 315 50% 43% 7%Operating Material/ Supp 4,000 2,000 1,720 280 50% 43% 7%Small Equipment/Furniture NEW 50% 43% 7%Advertisement/ Promotion 750 375 323 53 50% 43% 7%Water Use Efficiency 50,000 25,000 21,500 3,500 50% 43% 7%Books/ Dues/ Subscriptions 70,000 35,000 30,100 4,900 50% 43% 7%Civic Center Rent 57,000 28,500 24,510 3,990 50% 43% 7%Travel Expense 5,000 2,500 2,150 350 50% 43% 7%Employee Training 6,000 3,000 2,580 420 50% 43% 7%Safety Meetings/ Training 500 250 215 35 50% 43% 7%Computer Hardware <$5,000 NEW 50% 43% 7%Fiscal/ Paying Agent Fees 1,000 500 430 70 50% 43% 7%Cost Allocate Plan Reimbursement 50% 43% 7%Cost Allocation Reimb 50% 43% 7%Interdepartmental Charges 2,051,390 1,025,695 879,657 146,038 50% 43% 7%Fix Chg Bldg Maintenance 10% 83% 7%Fix Chg Information Syst 10% 83% 7%Fix Chg Print Shop 10% 83% 7%Fix Chg Fleet Maint 10% 83% 7%Fix Chg Risk Mgmt 10% 83% 7%Fix Chg Records Mgmt 10% 83% 7%Fix Chg Communication 10% 83% 7%Fix Chg Permit Trkg Sftw 10% 83% 7%Fix Reimb Public Wks Adm 10% 83% 7%Fix Reimb NDPES 10% 83% 7%Fix Chg GIS 10% 83% 7%Fix Chg Volunteer Serv 10% 83% 7%Fix Chg Employer Service 10% 83% 7%Fix Chg Legal Serv 10% 83% 7%O/H Admin Charge 10% 86% 4%Var Chg Mail 10% 86% 4% SUBTOTAL: GENERAL & ADMIN $ 2,960,880 $ 1,305,018 $ 1,368,155 $ 287,707 44.1% 46.2% 9.7% Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 23 of 37 Packet Pg. 705 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisTABLE 20 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.Classification of Expenses Volumetric CY 2024 COM CAP CA COM CAP CA
WTR PRODUCTION (Division 862)
Operating & Materials $ $ $ $ 50% 50% 0%Purchased Water Rdg $ 115,000 $ 113,850 $ 1,150 $ 99% 1% 0%Purchased Water Buckeye 200,000 198,000 2,000 99% 1% 0%Purchased Water Bella V 99% 1% 0%Purchased Water Bella V 500,000 495,000 5,000 99% 1% 0%Purchased Water SDPUD 30,000 29,700 300 99% 1% 0%Purchased Water Acid 480,000 475,200 4,800 99% 1% 0%CVP Improvement Act Fee 225,000 222,750 2,250 99% 1% 0%Wapa Foregone Power 220,000 217,800 2,200 99% 1% 0% SUBTOTAL: PRODUCTION $ 1,770,000 $ 1,752,300 $ 17,700 $ 99.0% 1.0% 0.0% Fixed
Total Revenue Basis of Classification
Requirements Commodity Capacity Customer Budget Categories Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 24 of 37 Packet Pg. 706 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisTABLE 21 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.Classification of Expenses Volumetric CY 2024 COM CAP CA COM CAP CA
WATER TREATMENT (Division 863)
Personnel $ 2,352,160 $ 1,176,080 $ 1,167,847 $ 8,233 50% 50% 0%Full Time Regular $ $ $ $ 50% 50% 0%Full Time Temporary 50% 50% 0%Part time Temporary 50% 50% 0%Overtime 50% 50% 0%Accrued Pay Vacation NEW 50% 50% 0%Misc Pay Adjustment 50% 50% 0%Vacation Pay Back 50% 50% 0%Worker's Comp Ins 50% 50% 0%Group Ins Program 50% 50% 0%Public Agency Ret Sys 50% 50% 0%Retirement Program 50% 50% 0%Social Security 50% 50% 0%Medicare 50% 50% 0%Unemployment 50% 50% 0%PW/ENGR & Administration NEW 50% 50% 0%Water Utility NEW 50% 50% 0%PW/ENGR & Administration 50% 50% 0%Street Divisions 50% 50% 0%Parks NEW 50% 50% 0%Water Utility 50% 50% 0%Wastewater Utility NEW 50% 50% 0%Building Maintenance NEW 50% 50% 0%Operating & Materials 50% 50% 0%Vehicle Fuel & Lubricant 130,000 65,000 64,545 455 50% 50% 0%Vehicle Fuel & Lubricant 32,000 16,000 15,888 112 50% 50% 0%Utility Expense 2,700,000 1,350,000 1,340,550 9,450 50% 50% 0%CA/ Fed Regulatory Costs 100,000 50,000 49,650 350 50% 50% 0%Communication Expense 22,000 11,000 10,923 77 50% 50% 0%Operating Material/ Supp 1,100,000 550,000 546,150 3,850 50% 50% 0%Water Treatment Chemical 350,000 175,000 173,775 1,225 50% 50% 0%Software NEW 30,000 15,000 14,895 105 50% 50% 0%Land Rights So Pacific 5,700 2,850 2,830 20 50% 50% 0%Rent Land 80,000 40,000 39,720 280 50% 50% 0%Travel Expense 3,500 1,750 1,738 12 50% 50% 0%Employee Training 15,000 7,500 7,448 53 50% 50% 0%Safety Meetings/ Training 15,000 7,500 7,448 53 50% 50% 0%OneTime Carry Over Costs 50% 50% 0%Interdepartmental Charges 907,640 453,820 450,643 3,177 50% 50% 0%Fix Chg Fleet Maint 50% 50% 0%Fix Chg Records Mgmt 50% 50% 0%Fix Chg Volunteer Serv 50% 50% 0%Fix Chg Employer Service 50% 50% 0%Et/ USA Locate 50% 50% 0% SUBTOTAL: WATER TREATMENT $ 7,843,000 $ 3,921,500 $ 3,894,050 $ 27,451 50.0% 49.7% 0.4% Fixed
Basis of Classification
Capacity Customer Total Revenue Requirements Commodity Budget Categories Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 25 of 37 Packet Pg. 707 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisTABLE 22 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.Classification of Expenses Volumetric CY 2024 COM CAP CA COM CAP CA
WTR DISTRIBUTION (Division 864)
Personnel $ 2,914,470 $ 1,457,235 $ 1,447,034 $ 10,201 50% 50% 0%Full Time Regular $ $ $ $ 10% 90% 0%Full Time Temporary 10% 90% 0%Overtime 10% 90% 0%Accrued Pay Vacation 10% 90% 0%Misc Pay Adjustment 10% 90% 0%Accrued Pay Sick Leave NEW 10% 90% 0%Vacation Pay Back 10% 90% 0%Accrued Pay Deferred Time NEW 10% 90% 0%Accrued PayComp Time 10% 90% 0%Worker's Comp Ins 10% 90% 0%Group Ins Program 10% 90% 0%Public Agency Ret Sys 10% 90% 0%Retirement Program 10% 90% 0%Social Security 10% 90% 0%Medicare 10% 90% 0%Unemployment Ins NEW 10% 90% 0%ElectricProduction NEW 10% 90% 0%Streets Gen & Admin NEW 10% 90% 0%ElectricResources NEW 10% 90% 0%Water Utility NEW 10% 90% 0%Wastewater Utility NEW 10% 90% 0%RMU Admin NEW 10% 90% 0%E/T USA Locate NEW 10% 90% 0%Storm Drainage Utility 10% 90% 0%Finance 10% 90% 0%PW/Engr & Administration 10% 90% 0%Streets Division 10% 90% 0%Wastewater Utility 10% 90% 0%Fleet Management NEW 10% 90% 0%Building Maintenance NEW 10% 90% 0% Basis of Classification
Capacity Customer
Fixed
Commodity Total Revenue Budget Categories Requirements
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 26 of 37 Packet Pg. 708 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisOperating & Materials 50% 50% 0%Specialized Srvcs/ Tech 300,000 150,000 148,950 1,050 50% 50% 0%Vehicle Fuel & Lubricant 90,000 45,000 44,685 315 50% 50% 0%Utility Expense 22,000 11,000 10,923 77 50% 50% 0%Communication Expense 16,000 8,000 7,944 56 50% 50% 0%Operating Material/ Supp 600,000 300,000 297,900 2,100 50% 50% 0%Small Equip/ Furniture 50% 50% 0%Software 15,000 7,500 7,448 53 50% 50% 0%Books/ Dues/ Subscriptions 2,000 1,000 993 7 50% 50% 0%Maint Material/Supply 50% 50% 0%Property Tax 210 105 104 1 50% 50% 0%Travel Expense 5,000 2,500 2,483 18 50% 50% 0%Employee Training 15,000 7,500 7,448 53 50% 50% 0%Safety Meetings/ Training 10,000 5,000 4,965 35 50% 50% 0%Computer Hardware <$5,000 NEW 50% 50% 0%Cost Allocate Plan Reimbursement 50% 50% 0%Cost Allocation Reimb 50% 50% 0%Cost Allocation Streets 50% 50% 0%Interdepartmental Charges 4,058,820 405,882 2,827,374 825,564 10% 70% 20%Fix Chg Bldg Maintenance 10% 90% 0%Fix Chg Utility Customer 0% 80% 20%Fix Chg Utility Field Op 0% 80% 20%Fix Chg Fleet Maint 10% 90% 0%Fix Chg Records Mgmt 10% 90% 0%Fix Chg Communication 10% 90% 0%Fix Chg Volunteer Serv 10% 90% 0%Fix Chg Employer Service 10% 90% 0%Et/ USA Locate 10% 90% 0%Storm Drain Allocation NEW 10% 90% 0% SUBTOTAL: DISTRIBUTION $ 8,048,500 $ 2,400,722 $ 4,808,250 $ 839,528 29.8% 59.7% 10.4% Total: Water Fund Expenses Operations $ 20,622,380 $ 9,379,540 $ 10,088,155 $ 1,154,685 45.5% 48.9% 5.6% Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 27 of 37 Packet Pg. 709 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYCost of Service AnalysisTABLE 23 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.Classification of Expenses Volumetric CY 2024 COM CAP CA COM CAP CA
Debt Service Payments
Water Share Refunding Revenue Bonds, 2013 Series $ $ $ $ 0% 100% 0% Capital Expenditures
Rate Funded Capital Expenses $ $ $ $ 0% 100% 0% TOTAL REVENUE REQUIREMENTS $ 20,622,380 $ 9,379,540 $ 10,088,155 $ 1,154,685 45% 49% 6%Less: NonRate Revenues Residential RevenueCommercial RevenueMeteredIn City (117,960) (53,651) (57,704) (6,605) 45% 49% 6%Fire Service (75,190) (34,198) (36,782) (4,210) 45% 49% 6%Fire Hydrant Rental (70,000) (31,838) (34,243) (3,919) 45% 49% 6%Service & Meter Install (29,000) (13,190) (14,186) (1,624) 45% 49% 6%Misc Operating Revenues 45% 49% 6%Real Estate Rentals (157,740) (71,744) (77,164) (8,832) 45% 49% 6%Sale of Property (2,950) (1,342) (1,443) (165) 45% 49% 6%NonOperating Revenue 45% 49% 6%Interest Income 45% 49% 6%Connection Fee RevenueBad Debt Writeoff (16,770) (7,627) (8,204) (939) 45% 49% 5.6% NET REVENUE REQUIREMENTS $ 20,152,770 $ 9,165,950 $ 9,858,428 $ 1,128,391 Allocation of Revenue Requirements 100.0% 45.5% 48.9% 5.6% $ (56,150)
TABLE 24 : ADJUSTMENTS TO CLASSIFICATION OF EXPENSESClassification of ExpensesAdjustments to Classification of ExpensesAdjustment for Current Rate Level: Total COM CAP CA Target Rate Rev. After Rate Increases** $ 30,381,958Projected Rate Revenue at Current Rates 28,527,660Rate Increase (FY 2019/20) 6.5%Adjusted Net Revenue Req'ts $ 30,381,958 $ 13,818,424 $ 14,862,392 $ 1,701,142
45.5% 48.9% 5.6%
45.5%54.5%
TABLE 25 : CURRENT RATE DESIGN NET REVENUE REQUIREMENTS RateDesign Adjustments to Fixed/Variable % 100% 60.0% 34.4% 5.6%RateDesign Adjustments to Fixed/Variable ($) $ 30,381,958 $ 18,229,175 $ 10,451,641 $ 1,701,142 60%40%
Total Rate Revenue
Requirements FY
Basis of Classification
Capacity Customer
Fixed
CommodityCommodity
Related Costs
Capacity Related
Costs
Customer Related
Costs
Total Revenue
Budget Categories Requirements
Proposed Rate Design
(40% Fixed / 60% Variable)
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Funct. & Classification, 28 of 37 Packet Pg. 710 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYWater Cost of Service AnalysisTABLE 26 : DEVELOPMENT OF THE BASE COMMODITY ALLOCATION FACTOR Meter Size
Water
Consumption
FY 2022/23
(ccf) 1
Adjustment to
Annual
Consumption
Adjusted
Annual
Consumption
Variable Cost
Allocations (% of
Total Volume)
Single Family 5,695,743 0.00% 5,695,743 58.7%MultiFamily 1,022,519 0.00% 1,022,519 10.5%Commercial 1,554,080 0.00% 1,554,080 16.0%Industrial 513,267 0.00% 513,267 5.3%Institutional 916,714 0.00% 916,714 9.4%Total 9,702,323 9,702,323 100.0% Projected Consumption 2 10,070,954
Hydrant 0 0% 0 N/AGrand Total 9,702,323 9,702,323
1. Consumption from 20222023 Report, Fiscal Year Usage by Class, from Ryan Bailey, 72123.: 21.2022_Revenue_nbs.xlsxMay and June 2023 data from Water Revenue and Meter Count, Revenue Period 202305 and Revenue Period 202306, 72523.
2. City's projected consumption. Source file: Water Proforma for NBS.xlsx.
Commodity Related Costs: These costs are associated with the total consumption (flow) of water over a specified period of time (e.g. annual).TABLE 27 : DEVELOPMENT OF THE PEAK CAPACITY ALLOCATION FACTORS Meter Size '22/23 Average Mo. Use (ccf) '22/23 Peak Mo. Use (ccf) 1 Peak Month Factor 1 Capacity Factor Alloc. % Single Family 415,219 768,175 1.85 61.9%MultiFamily 76,772 103,550 1.35 8.3%Commercial 115,180 169,261 1.47 13.6%Industrial 40,358 89,417 2.22 7.2%Institutional 68,586 111,480 1.63 9.0% Total 716,114 1,241,883 1.73 100.0%
Hydrant
Grand Total 716,114 1,241,883
1. From 20222023 Report, Fiscal Year Usage by Class, from Ryan Bailey, 72123.: 21.2022_Revenue_nbs.xlsx Capacity Related Costs: Costs associated with the maximum demand required at one point in time or the maximum size of facilities required to meet this demand.
Development of the BASE COMMODITY (VOLUMETRIC) Allocation Factor Development of the PEAK CAPACITY (MAX MONTH) Allocation Factors Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Allocation Factors, 29 of 37 Packet Pg. 711 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYWater Cost of Service AnalysisTABLE 28 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTORS Meter Size
No. of Active
Meters (June '23)1 Percent of Total
Single Family 23,912 81.2%MultiFamily 2,167 7.4%Commercial 2,361 8.0%Industrial 338 1.1%Institutional 677 2.3%Total 29,455 100.0% Hydrant 0
Grand Total 29,455
1. Number of meters and customer class as of May '23.
From Source file: 21.2022_Revenue_nbs.xlsx
May and June 2023 data from Water Revenue and Meter Count.
Customer Related Costs: Costs associated with having a customer on the water system. These costs vary with the addition or deletion of customers on the system. Examples: Meterreading, Postage and billing.
Development of the CUSTOMER Allocation Factor
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Allocation Factors, 30 of 37 Packet Pg. 712 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid TABLE 29 : ALLOCATION OF COMMODITY, CAPACITY & CUSTOMER COSTS CY 2024 Proposed Rate Design (40% Fixed / 60% Variable)
5/8 inch 3/4 inch 1 inch 1.5 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch Single Family 23,294 508 4 4 23,810MultiFamily 1,093 455 405 81 103 11 1 6 2,155Commercial 1,041 306 425 184 269 82 10 1 2,318Industrial 184 66 64 24 43 1 1 1 384Institutional 4 1 5Total Meters/Accounts 25,612 827 1,402 293 419 94 12 8 4 1 28,672Hydraulic Capacity Factor 2 1.00 1.50 2.50 5.00 8.00 16.00 25.00 50.00 80.00 210.00Total Equivalent Meters 25,612 1,241 3,505 1,465 3,352 1,504 300 400 320 210 37,909 Monthly Fixed Service Charges Customer Costs ($/Acct/mo.) 3 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 $4.94 Capacity Costs ($/Acct/mo.) 4 $22.98 $34.46 $57.44 $114.88 $183.80 $367.61 $574.39 $1,148.78 $1,838.05 $4,824.87 Total Monthly Meter Charge $27.92 $39.41 $62.38 $119.82 $188.75 $372.55 $579.33 $1,153.72 $1,842.99 $4,829.82 Annual Fixed Costs Allocated to Monthly Meter Charges
Customer Costs $ 1,701,142 Capacity Costs & Fire Costs $10,451,641 Total Fixed Meter Costs $ 12,152,783
Annual Revenue from Monthly Meter Charges
Customer Charges $ 1,519,589 $ 49,067 $ 83,182 $ 17,384 $ 24,860 $ 5,577 $ 712 $ 475 $ 237 $ 59 $ 1,701,142Capacity Charges 7,061,409 342,015 966,353 403,911 924,170 414,663 82,712 110,283 88,226 57,898 10,451,641Total Revenue from Monthly Meter Charges $ 8,580,998 $ 391,081 $ 1,049,535 $ 421,295 $ 949,030 $ 420,241 $ 83,424 $ 110,757 $ 88,464 $ 57,958 $ 12,152,783
1. Number of meters by size and class are from the City of Redding utility billing system. Source: 21.2022_Revenue_nbs.xlsx2. Source: AWWA Manual M1, "Principles of Water Rates, Fees and Charges", Table VI.25. Assumes displacement meters for 5/8 through 2 inch meters, Compound 3 8 inch meters, Turbine for 10 & 12 inch, unless noted otherwise.3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers.4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter.
Number of Meters
by Class and Size 1
June 2018 May 2019 Total
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Proposed Fixed Charges, 31 of 37 Packet Pg. 713 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYWater Cost of Service Analysis/Rate DesignTABLE 30 : PROPOSED VOLUMETRIC CHARGESProposed Rate Design (42% Fixed / 58% Variable) Rate Structure Type
Number of
Meters 1
Water
Consumption 2
(ccf/yr.)
Target Rev.
Req't from Vol.
Charges
Uniform
Commodity
Rates ($/ccf)
Proposed Rate
Structure
Single Family 23,912 5,695,743 $ 10,394,645 $1.82 UniformMultiFamily 2,167 1,022,519 $ 1,866,082 $1.82 UniformCommercial 2,361 1,554,080 $ 2,836,172 $1.82 UniformIndustrial 338 513,267 $ 936,705 $1.82 UniformInstitutional 677 916,714 $ 1,672,989 $1.82 Uniform Uniform Commodity Rate ($/ccf) 29,455 9,702,323 $ 17,706,593 $1.82 Uniform
1. Meter count and customer class from source file 21.2022_Revenue_nbs.xlsx2. Monthly consumption rate by customer type and meter size. Adjusted to match City's projection.
TABLE 31 : PROPOSED VOLUMETRIC CHARGESProposed Rate Design (40% Fixed / 60% Variable) Rate Structure Type
Number of
Meters 1
Water
Consumption 2
(ccf/yr.)
Target Rev.
Req't from Vol.
Charges
Uniform
Commodity
Rates ($/ccf)
Proposed Rate
Structure
Single Family 23,912 5,695,743 $ 10,701,426 $1.88 UniformMultiFamily 2,167 1,022,519 1,921,156 $1.88 UniformCommercial 2,361 1,554,080 2,919,878 $1.88 UniformIndustrial 338 513,267 964,350 $1.88 UniformInstitutional 677 916,714 1,722,365 $1.88 Uniform Uniform Commodity Rate ($/ccf) 29,455 9,702,323 18,229 $ $1.88 Uniform ,175
1. Meter count and customer class from source file 21.2022_Revenue_nbs.xlsx2. Monthly consumption rate by customer type and meter size. Adjusted to match City's projection.
TABLE 32 : HYDRANT CONSTRUCTION WATER RATE ALL ALTERNATIVES Hydrant Construction Water Rate All Alternatives CY 2024 CY 2025 CY 2026 CY 2027 Use of Water Funds $ 20,622,380 $ 28,604,828 $ 31,599,913 $ 33,441,716Use of Reserves for Capital Projects 19,338,391 11,431,421 4,710,309 5,541,580Total Cost $ 39,960,771 $ 40,036,248 $ 36,310,222 $ 38,983,296Total Expected Consumption 9,702,323 9,767,362 9,832,501 9,896,344Hydrant Rate $4.119 $4.099 $3.693 $3.939 Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Proposed Volume Charges, 32 of 37 Packet Pg. 714 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WATER RATE STUDYWater Cost of Service Analysis/Rate DesignTABLE 35 : CURRENT VS. RECOMMENDED WATER RATESProposed Rate Design (40% Fixed / 60% Variable) 2024 2025 2026 2027
12%/18%* 6.50% 6.50% 6.50%
Fixed Service Charge Based on Meter SizeMonthly Fixed Service Charge Standard Meters:
* SFR 5/8 and 3/4 inch $24.92 $27.92 $29.73 $31.67 $33.733/4 inch $33.30 $39.41 $41.97 $44.70 $47.601 inch $50.08 $62.38 $66.44 $70.76 $75.361.5 inch $92.01 $119.82 $127.61 $135.91 $144.742 inch $142.32 $188.75 $201.02 $214.08 $228.003 inch $276.50 $372.55 $396.77 $422.56 $450.034 inch $427.45 $579.33 $616.99 $657.10 $699.816 inch $846.76 $1,153.72 $1,228.72 $1,308.58 $1,393.648 inch $1,349.93 $1,842.99 $1,962.79 $2,090.37 $2,226.2410 inch N/A $4,829.82 $5,143.76 $5,478.10 $5,834.18 Commodity Charges for All Water Consumed per CCF
Uniform Rate $1.59 $1.88 $2.00 $2.13 $2.27
* Single Family Residents (SFR) Meters are 12% Increase, Commodity Charge is 18% Increase. Larger Meter Fixed Charges Percent Increases Vary.CCF = Hundred Cubic Feet (748 gallons) Current Recommended Rates
Rates
Proposed Annual Rate Increases
Water Rate Schedule
Prepared by NBSwww.nbsgov.com | Tollfree: 800.676.7516 Current & Proposed Rates, 33 of 37 Packet Pg. 715 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | Tollfree: 800.676.7516 SFR Bill Comp 4 yr, Page 34 of Pages $0
$10$20$30$40$50$60$70$80$90
$100$110
2024 2025 2026 2027
Monthly Water Consumption (CCF)
SingleFamily Water Bill Comparison Current vs. Proposed Rates (5/8" Meter, Average Consumption of 17.3 CCF/mo.)
SFR Bill Current RatesSFR Bill Proposed (40% Fixed) Packet Pg. 716
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | Tollfree: 800.676.7516 SFR Bill Comp, Page 35 of Pages $0
$10$20$30$40$50$60$70$80$90
$100$110$120$130$140
6 8.4 15.0 17.4 27 29.6 45
Monthly Water Consumption (CCF)
Residential Water Bill Comparison
Current vs. Proposed CY 2024 Rates (5/8" Meter)
SFR Bill Current RatesSFR Bill Proposed (40% Fixed) Average SUMMER
Monthly Bill
(29.6 CCF)
Average WINTER
Monthly Bill
(8.4 CCF)
Average
ANNUAL
Monthly Bill
(17.3 CCF)
Packet Pg. 717
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | Tollfree: 800.676.7516 MFR Bill Comp, Page 36 of Pages $0
$10$20$30$40$50$60$70$80$90
5 9 12.5 14.4 18 19.9 25 30
Monthly Water Consumption (CCF)
MultiFamily Water Bill Comparison
Current vs. Proposed Rates (5/8" Meter)
MFR Bill Current RatesMFR Bill Proposed (42% Fixed)MFR Bill Proposed (40% Fixed) Average
SUMMER
Monthly Bill
(19.9 CCF)
Average WINTER
Monthly Bill
(12.5 CCF)
Average
ANNUAL
Monthly Bill
(14.5 CCF)
Packet Pg. 718
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | Tollfree: 800.676.7516 Comm Bill Comp, Page 37 of Pages $0
$10$20$30$40$50$60$70$80$90
$100$110$120
5 10 15.5 18 18.8 25 29.8 35
Monthly Water Consumption (CCF)
Commercial Water Bill Comparison
Current vs. Proposed Rates (5/8" Meter)
Comm. Bill Current RatesComm. Bill Proposed (40% Fixed) Average
SUMMER
Monthly Bill
(29.8 CCF)
Average WINTER
Monthly Bill
(15.5 CCF)
Average
ANNUAL
Monthly Bill
(18.8 CCF)
Packet Pg. 719
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 39
Appendix B. Wastewater Rate Study Tables and Figures
Packet Pg. 720 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Financial Plan and Reserve Fund Summary WASTEWATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Budget
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Sources of Wastewater Funds
Rate Revenue Under Prevailing Rates $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526 $ 34,060,526NonRate Revenues 78,537 78,357 81,842 85,499 89,335Interest Earnings (in O&M, Capital and Debt reserves)2 479,699 Total Sources of Funds $ 34,618,762 $ 34,138,883 $ 34,142,368 $ 34,146,025 $ 34,149,861 Uses of Wastewater Funds
Operating Expenses (Divisions less Interdepart. Charges ):
WW Industrial Pretreatment (Division 870) $ 835,347 $ 938,850 $ 988,253 $ 1,037,665 $ 1,089,548WW SystemAdministration (Division 871) $ 586,049 $ 593,790 $ 618,836 $ 649,778 $ 682,267WW Stillwater Treatment Plant (Division 872) $ 2,366,627 $ 2,478,850 $ 2,575,743 $ 2,704,530 $ 2,839,756WW Collection Systems (Division 874) $ 2,559,357 $ 2,740,780 $ 2,858,444 $ 3,001,366 $ 3,151,435WW Clear Creek Treatment Plant (Division 875) $ 3,706,410 $ 3,764,390 $ 3,831,825 $ 3,986,916 $ 4,148,681Interdepartmental Charges $ 6,852,280 6,048,612 $ 7,194,894 $ 7,554,639 $ 7,932,371 $ Subtotal: Operating Expenses $ 16,102,402 $ 17,368,940 $ 18,067,994 $ 18,934,893 $ 19,844,058 Other Expenditures:
Existing Debt Service (funded by rates)3 $ 7,290,393 10,173,269 $ 6,171,887 $ 6,172,887 $ 6,174,637 $ New Debt Service (to be funded by rates) RateFunded Capital Expenses 22,745,832 13,424,361 10,399,666 14,837,497 9,605,279Subtotal: Other Expenditures $ 32,919,101 $ 20,714,753 $ 16,571,553 $ 21,010,384 $ 15,779,916 Total Uses of Wastewater Funds $ 49,021,504 $ 38,083,693 $ 34,639,547 $ 39,945,277 $ 35,623,973 plus: Revenue from Rate Increases 851,513 3,491,204 4,993,273 6,555,425 Annual Surplus/(Deficit) $ (14,402,742) $ (3,093,297) $ 2,994,025 $ (805,979) $ 5,081,313 Net Revenue Req't. (Total Uses less NonRate Revenue) $ 48,463,268 $ 38,005,336 $ 34,557,705 $ 39,859,778 $ 35,534,638Total Rate Revenue After Rate Increases $ 34,060,526 $ 34,912,039 $ 37,551,730 $ 39,053,799 $ 40,615,951Projected Annual Rate Increase 0.0% 5.00% 5.00% 4.00% 4.00%Cumulative Increase from Annual Rate Increases 0.00% 5.00% 10.25% 14.66% 19.25%Coverage After Rate Increase (0.42) 0.58 1.49 0.87 1.82
1. Revenue and expenses are per the City's Proforma (Source file: Redding_ WW proforma Budget Version 2023 FINAL VERSIONv.xlsx2. Refers to the City's budget for interest earnings in FY 2022/23. For all future years, interest earnings are calculated here based on the City's Pooled Cash Interest Rate. Source file: REDDING_ Pooled Cash Interest Rate Dec 2018.xlsx.
3. Debt service that cannot be fully paid through the Impact Fee Reserve Fund has been added to Debt Service to be funded by rates.
Selection of Financial Plan Alternative (Select rate option below) 2 Financial Plan Alternatives CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 1 Low Rate Increases 0.00% 3.00% 3.00% 3.00% 3.00%2 Approximate Inflation Rate 0.00% 5.00% 5.00% 4.00% 4.00%3 Moderate Rate Increases 0.00% 6.00% 6.00% 4.00% 4.00%4 Custom Rate Increases 0.00% 7.00% 7.00% 3.00% 3.00% Projected (4Year Rate Period) RATE REVENUE REQUIREMENTS SUMMARY1 Insert policy choice in box to right, based on options listed below Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 721 Financial Plan, 1 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Financial Plan and Reserve Fund Summary WASTEWATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 2 : RESERVE FUND SUMMARY Budget
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Total Beginning Cash 1 $40,317,991
Wastewater O&M Reserve Fund
Beginning Reserve Balance 2 $22,230,006 $ 948,703 4,342,000 $ 3,682,728 $ 2,576,749 $ Plus: Net Cash Flow (After Rate Increases) (14,402,742) (3,093,297) 2,994,025 (805,979) 5,081,313Less: Transfer to Rolling Stock (300,000) (300,000) (260,000) (300,000) (450,000)Less: Transfers Out to the Capital Reserve (3,185,264) (2,009,062) Ending O&M Reserve Balance $ 4,342,000 $ 948,703 $ 3,682,728 $ 2,576,749 $ 5,199,000Target Ending Balance (90 days of O&M) $ 4,026,000 $ 4,342,000 $ 4,517,000 $ 4,734,000 $ 4,961,000 Wastewater Capital R&R Reserve Fund (Rates)
Beginning Reserve Balance $ 17,000,000 $ 9,805,264 $ 5,200,000 $ 2,850,000 $ 2,850,000Plus: Grant Revenue Plus: Transfer of Operating Reserve Surplus 3,185,264 2,009,062Less: Capital Projects Funded (10,380,000) (4,605,264) (2,350,000) Ending Capital Repair & Replacement Fund Balance $ 9,805,264 $ 5,200,000 $ 2,850,000 $ 2,850,000 $ 4,859,062Target Ending Balance (3% of Net Assets) 4 $ 5,200,000 4,840,000 $ 5,700,000 $ 5,900,000 $ 6,100,000 $ Rolling Stock Reserve Fund
Beginning Reserve Balance 1 $ 281,212 $ 634,089 520,592 $ 300,884 $ 244,651 $ Plus: Interest Earnings 6 4,455 8,247 10,045 4,767 3,876Plus: Transfer In from Operations $ 300,000 $ 300,000 $ 260,000 $ 300,000 $ 450,000Plus: Sale of Rolling Stock (5% of Expenses) $ 3,425 $ 10,250 $ 31,750 $ 19,000 $ 3,500Less: Rolling Stock Expenses $ (68,500) $ (205,000) $ (635,000) $ (380,000) $ (70,000) Ending Rolling Stock Fund Balance $ 520,592 $ 634,089 $ 300,884 $ 244,651 $ 632,027 $ 272,000 272,000 $ 272,000 $ 272,000 $ 272,000 $
Ending Balance All Reserves $ 14,667,856 $ 6,782,792 $ 6,833,612 $ 5,671,400 $ 10,690,088Recommended Target Ending Balance All Reserves $ 9,138,000 $ 9,814,000 $ 10,489,000 $ 10,906,000 $ 11,333,000Ending Surplus/(Deficit) Compared to Reserve Targets $ 5,529,856 $ (3,031,208) $ (3,655,388) $ (5,234,600) $ (642,912)Days Cash on Hand 110 66 73 52 110 Projected (4Year Rate Period) SUMMARY OF RESERVE FUND ACTIVITY Target Ending Balance (Avg. of '22/23 '26/27 R.S. Expenses) Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 722 Financial Plan, 2 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Financial Plan and Reserve Fund Summary WASTEWATER RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 3 : RESERVE FUND SUMMARY, cont.Restricted Reserves CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Beginning Reserve Balance 1 $ 1,087,985 $ 2,232,323 $ 3,987,979 $ 1,782,980 $ 554,600 Plus: Interest Earnings 5 17,236 35,364 63,177 28,246 8,786Plus: Impact Fee Revenue 1,600,000 1,720,292 1,731,824 1,743,374 1,754,693Less: Use of Reserves for Capital Projects (Future Needs) (472,898) (4,000,000) (3,000,000) (2,318,079) Ending Impact Fee Fund Balance $ 2,232,323 $ 3,987,979 $ 1,782,980 $ 554,600 $ Debt Reserve FundBeginning Reserve Balance 1 $ 3,931,611 $ 3,931,611 3,931,611 $ 3,931,611 $ 3,931,611 $ Less: Transfer of Surplus to Operating Reserve Ending Debt Reserve Balance $ 3,931,611 $ 3,931,611 $ 3,931,611 $ 3,931,611 $ 3,931,611 Target Ending Balance $ 4,058,000 $ 4,058,000 $ 4,058,000 $ 4,058,000 $ 4,058,000 Annual Interest Earnings Rate 5 1.58% 1.58% 1.58% 1.58% 1.58%
1. Beginning cash balance for FY 2022/23 is per the City's proforma. Source file: Redding_WW proforma Budget Version 2023 FINAL VERSIONb.xlsx2. The total beginning cash balance for the Operating Reserve is calculated as the total amount of unrestricted cash as of June 30, 2022 less the beginning balances of the following funds:
Capital R&R, Rolling Stock and Impact Fee Reserves.
3. Expected savings do not represent actual revenue, but rather anticipated savings based on historical differences between budgeted expenses and actual expenses. Expected savings amounts are from the City's proforma.
Source file: REDDING_WW Proforma Budget Version 2023 FINAL VERSIONb.xlsx
4. NBS is recommending 3% of net assets for capital reserve fund.5. Interest earnings rate is based on the City's Pooled Cash Interest Rate. Source file: December 2018_Int Earning.pdf .
Wastewater System Capacity Fee Fund
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 723 Financial Plan, 3 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts & Tables
WASTEWATER RATE STUDYRate Adjustment Charts Recommended RatesChart 1 $0 mil.
$10 mil.$20 mil.$30 mil.$40 mil.$50 mil.$60 mil.
2024 2025 2026 2027
Fiscal Year Ending June 30
Wastewater Revenue Under Existing and Proposed Rates
and Annual Revenue Requirements by Type
RateFunded Capital ExpensesDebt ServiceOperating ExpensesRate Revenue Under Prevailing RatesTotal Rate Revenue After Rate Increases Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 724 Charts & Tables, 4 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts & Tables
WASTEWATER RATE STUDYRate Adjustment Charts Recommended RatesChart 2 $0 mil.$2 mil.$4 mil.$6 mil.$8 mil.
$10 mil.$12 mil.$14 mil.$16 mil.
2024 2025 2026 2027
Calendar Year
Ending Cash Balance vs. Recommended Reserve Targets
Total Unrestricted ReservesRecommended Target Reserve Balance Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 725 Charts & Tables, 5 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts & Tables
WASTEWATER RATE STUDYRate Adjustment Charts Recommended RatesChart 3
5.0% 5.0%
4.0% 4.0%
0.0%1.0%2.0%3.0%4.0%5.0%6.0%
2024 2025 2026 2027
Calendar Year
Projected Annual Rate Increases
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 726 Charts & Tables, 6 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts & Tables
WASTEWATER RATE STUDYRate Adjustment Charts Recommended RatesChart 4 110
66 73
52 0
20406080
100120140160
2024 2025 2026 2027
Fiscal Year Ending June 30
Number of Days Cash on Hand
Days Cash on Hand90 Day Operating Reserve150 Days Cash on Hand Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 727 Charts & Tables, 7 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts & Tables
WASTEWATER RATE STUDYRate Adjustment Charts Recommended RatesChart 5 $33.6 Mil.
$18.03 Mil.
$16.75 Mil. $17.84 Mil.
$13.21 Mil.
$. Mil.
$5. Mil.
$10. Mil.$15. Mil.$20. Mil.$25. Mil.$30. Mil.$35. Mil.$40. Mil. 2024 2025 2026 2027
Calendar Year
Annual Sewer Capital Expenditures
CY 2024 CY 2027
$6 M CIP Shifted from
'2025 to '2026
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 728 Charts & Tables, 8 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 4 : REVENUE FORECAST 1 4% 1% 1% 1%Wastewater System Adm Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Operating RevenueWastewater Service Charges 1 $ 34,060,526 $ 35,306,210 $ 35,542,885 $ 35,779,922 $ 36,012,240Pretreatment Fees 1 2,190 2,250 2,265 2,280 2,295Sewer Tap Fees 1 5,220 5,370 5,406 5,442 5,477Bad Debt Writeoff 1 (67,780) (68,250) (68,707) (69,166) (69,615)NonOperating RevenueMisc Rev 87116900 5 55,787 55,787 58,576 61,505 64,580Misc Rev 87119100 1,820 1,030 1,030 1,030 1,030Real Estate Rental 5 12,520 12,890 13,535 14,212 14,922Loan repayment Airports Clover Crk Asses 7 Miscellaneous Revenue 6 1,000 1,030 1,030 1,030 1,030Interest Revenue See FP 479,699 197,500Connection Fee Revenue 1 1,600,000 1,720,292 1,731,824 1,743,374 1,754,693 Total Revenue $ 36,150,982 $ 37,234,110 $ 37,287,843 $ 37,539,629 $ 37,786,653 TABLE 5 : REVENUE FORECAST SUMMARYWastewater Rate Revenue $ 34,060,526 $ 35,306,210 $ 35,542,885 $ 35,779,922 $ 36,012,240All Other NonRate Revenue 78,537 78,357 81,842 85,499 89,335Interest Revenue 479,699 197,500 Connection Fee Revenue 1,600,000 1,720,292 1,731,824 1,743,374 1,754,693 Total Revenue $ 36,218,762 $ 37,302,359 $ 37,356,551 $ 37,608,794 $ 37,856,268 Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 9 of 27 Packet Pg. 729 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 6 : OPERATING EXPENSE FORECASTWW Industrial Pretreatment (Division 870) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 668,777 $ 744,050 $ 781,253 $ 820,315 $ 861,331Operating & MaterialsVAR CHG PRINT SHOP 5 1,000 1,000 1,000 1,050 1,103VAR CHG REPRODUCTION 5 1,000 1,000 1,000 1,050 1,103VAR CHG MAIL 5 200 200 200 210 221Specialized Srvcs/ Tech 5 50,000 75,000 85,000 89,250 93,713Vehicle Fuel & Lubricant 5 4,500 5,000 6,000 6,300 6,615Wastewater Maint/Repair 5 5,000 15,000 15,000 15,750 16,538Communication Expense 5 2,000 2,000 2,000 2,100 2,205Communication Expense 5 Operating Material/ Supp 5 15,000 15,000 15,000 15,750 16,538Software 5 22,470 15,000 16,000 16,800 17,640Advertisement/ Promotion 5 50,000 50,000 50,000 52,500 55,125Books/ Dues/ Subscriptions 5 2,000 2,000 2,000 2,100 2,205Travel Expense 5 5,000 5,000 5,000 5,250 5,513Certification 5 1,400 1,600 1,800 1,890 1,985Employee Training 5 5,000 5,000 5,000 5,250 5,513Safety Meetings/ Training 5 2,000 2,000 2,000 2,100 2,205Interdepartmental Charges 5 139,624 194,710 204,446 214,668 225,401Subtotal: Industrial Pretreatment Expenses $ 974,971 $ 1,133,560 $ 1,192,698 $ 1,252,333 $ 1,314,950 Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 10 of 27 Packet Pg. 730 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 7 : OPERATING EXPENSE FORECAST, cont.WW SystemAdministration (Division 871) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 482,429 $ 485,920 $ 510,216 $ 535,727 $ 562,513Operating & MaterialsProf Servcs/Consult 5 30,000 30,000 30,000 31,500 33,075Vehicle Fuel & Lubricant 5 400 1,000 1,000 1,050 1,103Bank Service Fees 5 15,000 15,250 15,500 16,275 17,089Communication Expense 5 2,000 2,000 2,000 2,100 2,205Operating Material/ Supp 5 5,000 5,000 5,500 5,775 6,064Small Equipment/Furniture 5 1,400 1,500 1,500 1,575 1,654Books/ Dues/ Subscriptions 5 2,000 2,000 2,000 2,100 2,205Property Taxes 5 500 500 500 525 551Civic Center Rent 5 37,620 37,620 37,620 39,501 41,476Travel Expense 5 5,000 5,000 5,000 5,250 5,513Employee Training 5 3,000 3,000 3,000 3,150 3,308Safety Meetings/ Training 5 500 1,000 1,000 1,050 1,103Fiscal/ Paying Agent Fees 5 1,200 4,000 4,000 4,200 4,410Interdepartmental Charges 5 3,179,645 3,686,480 3,870,804 4,064,344 4,267,561Subtotal: System Administration Expenses $ 3,765,694 $ 4,280,270 $ 4,489,640 $ 4,714,122 $ 4,949,828 Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 11 of 27 Packet Pg. 731 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 8 : OPERATING EXPENSE FORECAST, cont.WW Stillwater Treatment Plant (Division 872) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 1,000,787 $ 1,075,850 $ 1,129,643 $ 1,186,125 $ 1,245,431Operating & MaterialsProf Servcs/Consult 5 100,000 50,000 50,000 52,500 55,125Specialized Srvcs/ Tech 5 73,830 25,000 25,000 26,250 27,563Vehicle Fuel & Lubricant 5 5,500 12,000 12,000 12,600 13,230Wastewater Maint/Repair 5 77,500 80,000 82,000 86,100 90,405Utility Expense 5 670,750 670,000 690,100 724,605 760,835Communication Expense 5 9,060 10,000 10,000 10,500 11,025Operating Material/ Supp 5 275,000 390,000 400,000 420,000 441,000Software 5 14,700 10,000 12,000 12,600 13,230Permit Fees 5 30,000 30,000 34,000 35,700 37,485Books/ Dues/ Subscriptions 5 1,500 1,500 1,500 1,575 1,654Maint Material/Supply 5 92,500 110,000 115,000 120,750 126,788Travel Expense 5 1,500 1,500 1,500 1,575 1,654Certification 5 500 3,000 3,000 3,150 3,308Employee Training 5 9,500 5,000 5,000 5,250 5,513Safety Meetings/ Training 5 4,000 5,000 5,000 5,250 5,513Interdepartmental Charges 5 568,791 581,320 610,386 640,905 672,951Subtotal: Stillwater Treatment Plant Expenses $ 2,935,417 $ 3,060,170 $ 3,186,129 $ 3,345,435 $ 3,512,707 Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 12 of 27 Packet Pg. 732 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 9 : OPERATING EXPENSE FORECAST, cont.WW Collection Systems (Division 874) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel 5 $ 1,902,907 $ 2,063,280 $ 2,166,444 $ 2,274,766 $ 2,388,505Operating & MaterialsProf Servcs/Consult 5 5,000 5,000 5,000 5,250 5,513Specialized Srvcs/ Tech 5 25,000 44,000 46,000 48,300 50,715Vehicle Fuel & Lubricant 5 55,000 65,000 67,000 70,350 73,868Pump Maint/Repair 5 22,000 30,000 30,000 31,500 33,075Utility Expense 5 204,000 185,000 190,000 199,500 209,475Communication Expense 5 12,100 10,000 10,000 10,500 11,025Operating Material/ Supp 5 214,000 230,000 235,000 246,750 259,088Small Equip/Furniture 5 100 Software 5 36,750 28,000 28,500 29,925 31,421Pretreatment Chemicals 5 45,000 45,000 45,000 47,250 49,613Books/ Dues/ Subscriptions 5 4,500 5,500 5,500 5,775 6,064Travel Expense 5 6,000 5,000 5,000 5,250 5,513Employee Training 5 12,000 10,000 10,000 10,500 11,025Safety Meetings/ Training 5 15,000 15,000 15,000 15,750 16,538Interdepartmental Charges 5 1,282,992 1,453,450 1,526,123 1,602,429 1,682,550Subtotal: Collection Systems Expenses $ 3,842,349 $ 4,194,230 $ 4,384,567 $ 4,603,795 $ 4,833,985 Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 13 of 27 Packet Pg. 733 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesTABLE 10 : OPERATING EXPENSE FORECAST, cont.WW Clear Creek Treatment Plant (Division 875) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel 3 $ 1,564,610 $ 1,736,740 $ 1,788,125 $ 1,841,031 $ 1,895,502Operating & MaterialsProf Servcs/Consult 5 60,000 60,000 60,000 63,000 66,150Specialized Srvcs/ Tech 5 145,000 150,000 150,000 157,500 165,375Vehicle Fuel & Lubricant 5 10,200 13,000 14,000 14,700 15,435Wastewater Maint/Repair 5 200,000 205,000 210,000 220,500 231,525Utility Expense 5 943,500 875,000 875,000 918,750 964,688Communication Expense 5 7,000 7,500 7,500 7,875 8,269Postage/Mailing Expense 5 100 100 150 158 165Operating Material/ Supp 5 520,200 540,000 545,000 572,250 600,863Small Equip/Furniture 5 2,500 2,500 2,500 2,625 2,756Software 5 108,150 15,000 15,000 15,750 16,538Permit Fees 5 85,000 85,000 90,000 94,500 99,225Books/ Dues/ Subscriptions 5 5,000 5,000 5,000 5,250 5,513Maint Material/Supply 5 30,600 45,000 45,000 47,250 49,613Property Taxes 5 50 50 50 53 55Travel Expense 5 2,500 2,500 2,500 2,625 2,756Employee Training 5 12,000 12,000 12,000 12,600 13,230Safety Meetings/ Training 5 10,000 10,000 10,000 10,500 11,025Interdepartmental Charges 5 877,560 936,320 983,136 1,032,293 1,083,907Subtotal: Clear Creek Treatment Plant Expenses $ 4,583,970 $ 4,700,710 $ 4,814,961 $ 5,019,209 $ 5,232,589 Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 14 of 27 Packet Pg. 734 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 1
WASTEWATER RATE STUDYOperating Revenue and ExpensesECONOMIC VARIABLES 4 Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Customer Growth 5 1 0.69% 0.69% 0.67% 0.67% 0.65%CCI 10 Year Average 2 3.42% 3.42% 3.42% 3.42% 3.42%CPI 10 Year Average 3 2.96% 2.96% 2.96% 2.96% 2.96%Blended 4 3.98% 3.98% 3.98% 3.98% 3.98%Personnel 5 5.00% 5.00% 5.00% 5.00% 5.00%Other 6 0.00% 0.00% 0.00% 0.00% 0.00%No Escalation 7 0.00% 0.00% 0.00% 0.00% 0.00% Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 1 (O&M), 15 of 27 Packet Pg. 735 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresTABLE 11 : SOURCES AND USES OF CAPITAL FUNDS `CAPITAL FUNDING FORECAST Budget CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Grant $ $ $ $ $ Use of System Capacity Fees1 472,898 $4,000,000 $3,000,000 $2,318,079Use of Capital R&R Reserves 10,380,000 4,605,264 2,350,000 Rate Revenue 22,745,832 13,424,361 10,399,666 14,837,497 9,605,279Grand Total: Capital Funding Sources $ 33,598,730 $18,029,625 $16,749,666 $17,837,497 $ 11,923,358 Uses of Capital Funds
Adjustments to CIP Spending $ $ $ (6,000,000) $ 6,000,000 $ Total CIP Projects Expenditures $ 33,600,754 $ 18,029,625 $ 16,749,666 $ 17,837,497 $ 11,923,358Total Uses of Capital Funds $ 33,600,754 $18,029,625 $16,749,666 $17,837,497 $ 11,923,358 Surplus/(Deficiency of Funding for CIP) 2 $ (2,024) $ $ $ $ 1. CIP expenses source file: CIP 202227 Final Draft.pdf for wastewater and WW proforma Budget Version 2023 FINAL VERSIONb.xls CIP funding from system capacity fees, Capital Improvement Plan, 202223 to 202728, Page B15: FY 2024/25 FY 2025/26 $4,000,000 $3,000,000
Funding Sources for Projects:
Projected (4Year Rate Period)
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 736 Exhibit 2 (CIP), 16 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresCAPITAL IMPROVEMENT PROGRAMTABLE 12 : CAPITAL IMPROVEMENT PROGRAM COSTS (in FutureYear Dollars ) 1Project Description 2024 2025 2026 2027 2028COLLECTION SYSTEM (Division 877):
Storm Drain Allocation $ 349,410 $ 360,960 $ 373,290 $ 386,050 $ 399,240Structures and Improvements 980,420 115,000 118,210 122,250 126,430Misc repair and replace 5Land AcquisitionInfiltration and Inflow Control 1,260,820 1,000,000 1,000,000 1,000,000 1,000,000Private Lateral ProgramDeerfield Pipelining / Mistletoe ReplaceCantor Ct Syphon Replacement 27,372System Maintenance (Storm Drain) 63,1402018 Storm Drain2019 Storm DrainVictoire WayHartnell SDLift Station Improvements 710,750 287,330 295,350 305,440 315,880Layton Lift StationLocust Lift Station 79,690Westside Lift StationHollow Lane SD 66,680Carr Fire Sewer LateralChurn Creek LS 49,710Westside Interceptor Phase III 2,000,000 8,000,000Master Plan Update 132,520 81,000 83,260 86,110 89,06068" Line Repair/Replacement 2,415,000 4,000,000 5,000,000 3,000,000 3,000,000San Francisco Replacement (Mesa $)Lake Redding Interceptor I 5,252,460Lake Redding Interceptor II 1,250,000Hill Street RepairHilltop Dr Lining Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 737 Exhibit 2 (CIP), 17 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresTABLE 13 : CAPITAL IMPROVEMENT PROGRAM COSTS (in FutureYear Dollars) 1Project Description 2024 2025 2026 2027 2028COLLECTION SYSTEM (Division 877):
School Street/EnterpriseBoneset/Manz/BechelliGarden Tract 658,300Grove StArroyo ManorHallmark/RedbudSt Nicholas AccessMiddleton Canby BypassBenton Tract LiningWoodacre Dr Replacement 1,165,820Patterson CtCumberland Sewer 100,000Oasis Road 100,000Bechelli Ln ReplacementBunker StreetMagnolia Area Improvements 6,252,970Magnolia Area Phase II/Tehama SewerMagnums Lining (NEW) 396,900Churn Creek SewerMaraglia Sewer 206,770Wooded Acre Sewer 6,690Hollow Ln Pipe ReplacementTrinity Street Sewer 3,400,000Placer Airpark to BostonBoulder Creek Interceptor Phase II Boulder Creek Interceptor Phase IIIOld Alturas RoadBechelli ATP 423,000Downtown Street CirculationBlock 7 919,170Old Alturas Bridge Improvements 10,000Loma Street AlleyHartnell LSNorth Market LSWest Side LSPC Computer Equipment 31,990 10,930 11,240 11,630 12,030Safety Equipment 44,070 45,500 46,770 48,370 50,030Other Equipment (sewer tv inspect, etc.) 42,500 16,360 16,820 17,400 18,000Future Projects 2 1. CIP expenses found in source file: WW proforma Budget Version 2023 FINAL VERSIONb.xls, Capital tab
2. Future projects, beyond 2033 are estimated based on the average of capital projects Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 738 Exhibit 2 (CIP), 18 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 2
WASTEWATER RATE STUDYCapital Improvement Plan ExpendituresTABLE 14 : CAPITAL IMPROVEMENT PROGRAM COSTS (in FutureYear Dollars ) 1Project Description 2024 2025 2026 2027 2028TREATMENT PLANT IMPROVEMENTS (Division 878) Structures and Improvements $ 286,850 $ 228,570 $ 234,950 $ 242,980 $ 251,290Food Waste Bio/Gas 100,000Administration 200,000 37,000 38,040 39,340 40,690Project Coordination 153,320 95,110 97,770 101,110 104,570CCWWTP Maintenance 1,000,000 650,000 668,140 690,970 714,580Solids Handling Facilities SWWWTP Maintenance 909,620 430,000 442,000 457,100 472,720Electrical Upgrade 5,000UV Disinfection EquipmentBiosolids Master Plan (NEW)Biofilter Maintenance 83,950Biosolids Pyrolysis I/II 8,015,280 2,000,000 5,250,000Biosolids Pyrolysis III/IV 4,000,000Filter MaintenanceSludge Lagoons 203,803 8,500,000Clarifier Rehab 20,000Generator Pad 455,000Dechlorination 175,000Screening Clear Creek 500 1,000,000Clear Creek WWTP LeveeStillwater WWTPClear Creek WWTP Pond UpgradesOffice EquipPC Computer Equipment 93,680 32,840 33,760 34,920 36,120Safety Equipment 103,030 37,000 38,040 39,340 40,690Future Projects 2 SubTotal: CIP Costs (FutureYear Dollars) $ 11,705,033 $12,110,520 $ 7,802,700 $ 1,605,760 $ 5,660,660Total: CIP Costs (FutureYear Dollars) $ 33,600,754 $18,029,625 $22,749,666 $11,837,497 $ 11,923,358
1. CIP expenses found in source file: WW proforma Budget Version 2023 FINAL VERSIONb.xls, Capital tab2. Future projects, beyond 2033 are estimated based on the average of capital projects Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 739 Exhibit 2 (CIP), 19 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 3
WASTEWATER RATE STUDYDebt ServiceTABLE 15 : EXISTING DEBT OBLIGATIONSEXISTING DEBT OBLIGATIONS Budget CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
2020 Wastewater System Refunding Revenue Bonds1
Principal Payment $ 1,465,000 $ 4,570,000 $ 3,680,000 $ 3,865,000 $ 4,060,000Interest Payment 2,153,000 134,850 1,924,500 1,740,500 1,547,250 Subtotal: Annual Debt Service $ 1,599,850 $ 6,723,000 $ 5,604,500 $ 5,605,500 $ 5,607,250 Debt Service Paid by Rates $ 1,599,850 $ 6,723,000 $ 5,604,500 $ 5,605,500 $ 5,607,250Debt Service Paid by Impact Fees $ $ $ $ $ Coverage Requirement (% above annual payment) 1 25% 25% 0% 0% 0%Reserve Requirement (total fund balance)2 $ $ $ $ $ 2013 California SWRCB Revolving Fund Loans3Total Principal Payment $ 6,598,920 $ 462,068 $ 474,075 $ 486,401 $ 499,048Total Interest Payment 1,660,160 Total Service Charge 105,325 314,340 93,311 80,985 68,339 Subtotal: Annual Debt Service $ 8,573,419 $ 567,393 $ 567,387 $ 567,387 $ 567,387 Coverage Requirement (% above annual payment)4 0% 0% 0% 0% 0%Reserve Requirement (total fund balance)5 $ 4,057,969 $ 4,057,969 $ 4,057,969 $ 4,057,969 $ 4,057,969Grand Total: Existing Annual Debt Service $ 10,173,269 $ 7,290,393 $ 6,171,887 $ 6,172,887 $ 6,174,637Grand Total: Existing Debt Reserve Target $ 4,057,969 $ 4,057,969 $ 4,057,969 $ 4,057,969 $ 4,057,969
1. The debt coverage requirement for this bond issue is 25% above the annual debt service payment plus 100% of any policy costs due to the insurer.
For purposes of this analysis, NBS assumes that nothing is owed to the insurer. Source file: 2020 Wastewater Refund SWRCB 05. Official Statement.pdf
2. There is no reserve requirement for this bond issue per the Official Statement.3. Source file: REDDING_Wastewater Debt Service.pdf.4. NBS assumes that there is no coverage requirement for these debt issues. 5. NBS assumes that there is no reserve requirement for these debt issues.
Annual Repayment Schedules:
Projected (4Year Rate Period)
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 3 (Debt), 20 of 27 Packet Pg. 740 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING EXHIBIT 4
Wastewater Rate Study Existing Sewer Rate Schedule
TABLE 16 : SEWER RATE SCHEDULE
Monthly Service Charges:
Single Family Dwelling ($/residence) $ 64.17Multi Family Dwelling ($/unit) 47.49Standard Commercial billed monthly ($/ccf) 6.59Standard Commercial calculated annually ($/# HE) 64.17Commercial Food Preparation billed monthly ($/ccf) 13.20Commercial Food Preparation calculated annually ($/# HE) 128.36
1. Current rates are from source file: Reso 2020016 Wastewater Utility Rate Schedule.pdf 2. Includes Industrial, Other and Unknown customers.
SEWER RATE SCHEDULE1 Current Rates
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Exhibit 4 (Rates), 21 of 27 Packet Pg. 741 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
WASTEWATER RATE STUDYCurrent and Proposed RatesTABLE 17 : SEWER RATE SCHEDULE Rate Alt. Selected: Approximate Inflation Rate CY 2024 CY 2025 CY 2026 CY 2027
Annual Rate increases as shown in Financial Plan: 5.00% 5.00% 4.00% 4.00% Monthly Service Charges:
Single Family Dwelling ($/residence) $64.17 $67.38 $70.75 $73.58 $76.52 Multi Family Dwelling ($/unit) $47.49 $49.86 $52.35 $54.44 $56.62Standard Commercial billed monthly ($/ccf) $6.59 $6.92 $7.27 $7.56 $7.86Standard Commercial calculated annually ($/# HE) 2 $64.17 $67.38 $70.75 $73.58 $76.52 Commercial Food Preparation billed monthly ($/ccf) $13.20 $13.86 $14.55 $15.13 $15.74Commercial Food Preparation calculated annually ($/# HE) $128.36 $134.78 $141.52 $147.18 $153.07
1. Current rates are from source file: REDDING_Wastewater Fee Schedule.pdf.2. Includes Industrial, Other and Unknown customers.
TABLE 18 : ESTIMATED ANNUAL REVENUE BY CUSTOMER CLASS Rate Alt. Selected: Approximate Inflation RateRevenue Check (Annual, $ per number of Housing Equivalents, exclude revenue generated from volumetric charges):
CY 2024 CY 2025 CY 2026 CY 2027
5.00% 5.00% 4.00% 4.00%
SingleFamily Residential 24,043 HEUs $ 18,514,072 $ 19,575,052 $ 20,691,879 $ 21,663,069 $ 22,674,927MultiFamily Residential 1 12,740 Units 7,260,271 7,675,470 8,112,803 8,492,960 8,890,406Standard Commercial billed monthly ($/ccf) 11,137 ccf/yr. 73,392 77,602 82,074 85,917 89,906Standard Commercial calculated annually ($/# HE) 2 6,775 HEUs 5,217,044 5,516,016 5,830,724 6,104,394 6,389,523Commercial Food Preparation billed monthly ($/ccf) 8,022 ccf/yr. 105,886 111,951 118,312 123,849 129,679Commercial Food Preparation calculated annually ($/# HE) 1,058 HEUs 1,629,381 1,722,743 1,821,019 1,906,479 1,995,649 Total 63,774 $ 32,800,046 $ 34,678,833 $ 36,656,810 $ 38,376,668 $ 40,170,090Projected Rate Revenue Fin. Plan $ 34,912,039 $ 37,551,730 $ 39,053,799 $ 40,615,951
1. MultiFamily Residential billed by number of housing units, not accounts.2. Billed at the Standard Commercial ($/# HE) CY 2024 CY 2025 CY 2026 CY 2027
SingleFamily Residential 24,043 24,210 24,372 24,535 24,694MultiFamily Residential 1 12,740 12,828 12,914 13,000 13,085Standard Commercial billed monthly ($/ccf) 11,137 11,214 11,289 11,365 11,438Standard Commercial calculated annually ($/# HE) 2 6,775 6,822 6,868 6,914 6,958Commercial Food Preparation billed monthly ($/ccf) 8,022 8,077 8,131 8,186 8,239Commercial Food Preparation calculated annually ($/# HE) 1,058 1,065 1,072 1,079 1,086 Customer Classes
No. of HEUs
or Units
(CY 2022)
Projected No. of Units Including Customer Growth
Estimated
Revenue at
Current Rates
Proposed Rates
Proposed Rates SEWER RATE SCHEDULE Current
Rates 1
No. of HEUs
or Units
(CY 2022)
Customer Classes
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Current and Proposed Rates, 22 of 27 Packet Pg. 742 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
Wastewater Rate Study Bill Comparison Calculations
TABLE 19 : SEWER RATE SCHEDULE
Current
Rates
CY 2024 CY 2025 CY 2026 CY 2027
Annual Rate increases as shown in Financial Plan: 5.00% 5.00% 4.00% 4.00% Monthly Service Charges:
Single Family Dwelling ($/residence) $64.17 $67.38 $70.75 $73.58 $76.52MultiFamily Dwelling ($/unit) $47.49 $49.86 $52.35 $54.44 $56.62Standard Commercial billed monthly ($/ccf) $6.59 $6.92 $7.27 $7.56 $7.86Standard Commercial calculated annually ($/# HE)* $64.17 $67.38 $70.75 $73.58 $76.52Commercial Food Preparation billed monthly ($/ccf) $13.20 $13.86 $14.55 $15.13 $15.74Commercial Food Preparation calculated annually ($/# HE) $128.36 $134.78 $141.52 $147.18 $153.07 * Includes Industrial, Other and Unknown customers.
SEWER RATE SCHEDULE
Prepared by NBSwww.nbsgov.com | TollFree:800.676.7516 Packet Pg. 743 Bill Comps, 23 of 27 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | TollFree: 800.676.7516 SFR Bill Comp, Page 24 of 27 $64.17
$67.38
$70.75 $73.58
$76.52
5.00% 5.00% 4.00% 4.00%
$0
$10$20$30$40$50$60$70$80$90
Current
Rates
CY 2024 CY 2025 CY 2026 CY 2027
Single Family Residential Sewer Bill Comparison
Current vs. Proposed Rates ($ per Residence)
Annual Rate
increases as
shown in
Financial Plan:
Packet Pg. 744
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | TollFree: 800.676.7516 MFR Bill Comp, Page 25 of 27 $47.49
$49.86
$52.35
$54.44
$56.62
5.00% 5.00% 4.00% 4.00%
$0
$10$20$30$40$50$60
Current
Rates
CY 2024 CY 2025 CY 2026 CY 2027
MultiFamily Residential Sewer Bill Comparison
Current vs. Proposed Rates ($ per Unit)
Annual Rate
increases as
shown in Financial
Plan:
Packet Pg. 745
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | TollFree: 800.676.7516 Comm Bill Comp, Page 26 of 27 $64.17
$67.38
$70.75 $73.58 $76.52
5.00% 5.00% 4.00% 4.00%
$0
$10$20$30$40$50$60$70$80$90
Current
Rates
CY 2024 CY 2025 CY 2026 CY 2027
Commercial Sewer Bill Comparison
Current vs. Proposed Rates ($ per Housing Equivalent)
Annual Rate
increases as
shown in
Financial Plan:
Packet Pg. 746
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Prepared by NBS
www.nbsgov.com | TollFree: 800.676.7516 Comm Food Bill Comp, Page 27 of 27 $128.36
$134.78
$141.52 $147.18
$153.07
5.00% 5.00% 4.00% 4.00%
$0
$20$40$60$80
$100$120$140$160$180
Current
Rates
CY 2024 CY 2025 CY 2026 CY 2027
Commercial Food Prep Sewer Bill Comparison
Current vs. Proposed Rates ($ per Housing Equivalent)
Annual Rate
increases as
shown in
Financial Plan:
Packet Pg. 747
Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Water, Wastewater and Solid Waste Utility Rate Study – City of Redding Prepared by NBS – September 2023 40
Appendix C. Solid Waste Rate Study Tables and Figures
Packet Pg. 748 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid Waste Utility Rates) CITY OF REDDING Financial Plan and Reserve Summary
SOLID WASTE RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Actuals Budget
CY 2022 CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Sources of Solid Waste Funds
Rate Revenues:Residential Rate Revenue $ 9,526,630 $ 9,942,670 $ 10,011,595 $ 10,081,039 $ 10,148,617 $ 10,216,299Commercial Rate Revenue 6,921,770 7,691,470 7,744,789 7,798,510 7,850,787 7,903,144RollOff Rate Revenue 1,982,570 2,633,490 2,651,746 2,670,139 2,688,039 2,705,965NonRate Revenues:Transfer Station Gate Fees 2,117,360 2,385,000 2,761,764 3,003,394 3,265,409 3,484,417Recycling Materials Revenues 1,572,330 992,901 999,784 1,006,719 1,013,468 1,020,227Misc. Other Revenues2 143,490 163,600 182,010 193,892 206,754 217,538 Total Sources of Funds $ 22,264,150 $ 23,809,131 $ 24,351,689 $ 24,753,693 $ 25,173,073 $ 25,547,590 Uses of Solid Waste Funds
Operating Expenses:
Solid Waste Administration $ 2,868,580 $ 3,536,040 $ 3,657,090 $ 3,504,070 $ 3,623,001 $ 3,746,262Residential Collection Expenses 3,436,180 3,509,660 3,992,580 4,088,820 4,220,440 4,356,330Commercial Collection Expenses 3,591,910 3,388,110 3,684,650 4,047,680 4,180,860 4,318,430RollOff Collection Expenses 1,168,510 1,528,340 1,645,300 1,721,680 1,703,400 1,761,580Resource Recovery Expenses 5,440,740 5,928,560 7,711,910 8,003,440 8,258,820 8,590,070Transfer Station Expenses 2,898,000 4,149,480 4,452,820 4,703,820 4,251,956 4,375,517Hazardous Household Waste Expenses 554,640 751,240 814,100 909,000 836,480 869,710Street Sweeping Expenses 1,387,470 1,250,550 1,498,310 1,782,480 1,759,870 1,841,400Subtotal: Operating Expenses $ 21,209,110 $ 24,178,900 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 29,859,299 Other Expenditures:
Future Debt Service 2,000,000Facility Expansion ProjectsRateFunded Capital Expenses 3 1,658,350 Subtotal: Other Expenditures $ $ 1,658,350 $ $ $ $ 2,000,000 Total Uses of Solid Waste Funds $ 21,209,110 $ 25,837,250 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 31,859,299 plus: Revenue from Rate Increases 1,530,610 4,973,025 7,061,865 8,785,023 Annual Surplus/(Deficit) After Rate Increases $1,055,040 ($2,028,119) ($1,574,462) $965,728 $3,400,111 $2,473,315 Net Revenue Req't. (Total Uses less NonRate Revenu$ 11,970,789 e) 8,471,590 $ 23,513,202 $ 24,556,985 $ 24,349,197 $ 27,137,117 $ Total Rate Revenue After Rate Increases 9,526,630 $ 20,267,630 $ 21,938,741 $ 25,522,713 $ 27,749,308 $ 29,610,432 $ Projected Annual Rate Increase 4 0.00% 0.00% 15.00% 8.00% 8.00% 6.00% Cumulative Increase from Annual Rate Increases 0.00% 0.00% 15.00% 24.20% 34.14% 42.18%
1. Revenues and expenses for FY 2021/22 through FY 2028/29 are per source file: REDDING_SW 10 Year Plan FY 1921 061819.xlsx .2. Beginning in FY 2023/24, interest earnings are calculated in this exhibit based on projected pooled cash earnings shown in the Reserve Fund Summary table.3. These are the only capital expenditures funded directly with rate revenue. Rolling stock expenditures are shown in the Rolling Stock Reserve Fund.4. Rate increases apply to both solid waste rates and fees, and are selected in the Financial Plan Alternatives.
Composite Inflationary Rate (all Operating Expenses): 13.6% 4.8% 0.3% 3.6% % Rate Increse per $100,000 Add'l O&M Cost 0.36% 0.35% 0.35% 0.33% $ Rate Increase in SFR Rate per $100,000 Add'l O&M Cost $0.12 $0.12 $0.12 $0.12 RATE REVENUE REQUIREMENTS SUMMARY 1 Projected (4Year Rate Period) Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 749 Financial Plan, 1 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Financial Plan and Reserve Summary
SOLID WASTE RATE STUDYFinancial Plan and Reserve ProjectionsTABLE 2 : RESERVE FUND SUMMARY Actuals Budget
CY 2022 CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Total Beginning Cash 1 $ 16,125,449 15,439,788 $
Solid Waste O&M Reserve Fund
Beginning Reserve Balance 2 $ 13,365,654 $ 4,057,000 12,820,694 $ 782,538 $ 498,266 $ 2,148,378 $ Plus: Net Cash Flow (After Rate Increases) 1,055,040 (2,028,119) (1,574,462) 965,728 3,400,111 2,473,315Less: Transfer to Rolling Stock 3 (1,500,000) (1,600,000) (1,700,000) (1,250,000) (1,750,000) (1,700,000)Net: Transfers To the Capital R&R Reserve 4 (5,235,575) Ending O&M Reserve Balance $12,820,694 $4,057,000 $782,538 $498,266 $2,148,378 $2,921,693Target Ending Balance (90 Days of Operating Expenses) $ 4,057,000 3,575,000 $ 4,840,000 $ 5,188,000 $ 5,284,000 $ 5,487,000 $ Solid Waste Capital R&R Reserve Fund
Beginning Reserve Balance 6 $ 1,310,000 $ 6,545,575 1,310,000 $ 4,345,575 $ 2,203,575 $ 3,253,575 $ Plus: Net Debt Proceeds 1,050,000 441,000Net: Transfer From/(To) the Operating Reserve 5,235,575 Less: Use of Reserves for Capital Projects and Equipment (2,200,000) (2,142,000) Ending Repair & Replacement Balance $ 1,310,000 $ 6,545,575 $ 4,345,575 $ 2,203,575 $ 3,253,575 $ 3,694,575Target Ending Balance (50% of Avg. CIP thru '27/28) 7 $ 1,460,000 1,460,000 $ 1,460,000 $ 1,460,000 $ 1,460,000 $ 1,460,000 $ Days Cash on Hand 168 83 50 84 100Ending Balance O&M and R&R Reserves $ (1,600,000) $ 10,602,575 $ 5,128,114 $ 2,701,842 $ 5,401,953 $ 6,616,268Recom. Target Ending Balance O&M and R&R Reserves$ 5,035,000 $ 5,517,000 $ 6,300,000 $ 6,648,000 $ 6,744,000 $ 6,947,000Ending vs. Target Annual Surplus/(Deficit) $7,495,694 $4,089,930 ($1,767,531) ($3,968,763) ($1,930,052) ($495,437) Solid Waste Rolling Stock Fund
Beginning Reserve Balance 8 $ 980,275 764,134 $ 504,355 $ 1,104,355 $ 1,227,395 $ 1,161,995 $ Plus: Transfers in from Operating Reserve 2,001,715 1,500,000 1,700,000 1,250,000 1,750,000 1,700,000Plus: Interest & Sale of R.S. 7,906 25,000 50,000 50,000 50,000 50,000Less: Use of Reserves for Rolling Stock (1,793,480) (2,000,920) (1,150,000) (1,176,960) (1,865,400) (1,376,700)Ending Rolling Stock Fund Balance $ 980,275 $ 504,355 $ 1,104,355 $ 1,227,395 $ 1,161,995 $ 1,535,295Target Ending Balance 1,600,000 1,500,000 1,700,000 1,250,000 1,750,000 1,700,000Ending Balance All Reserves $ 14,130,694 $ 11,106,930 $ 6,232,469 $ 3,929,237 $ 6,563,948 $ 8,151,563Recom. Target Ending Balance w/ Rolling Stock $ 6,635,000 $ 7,017,000 $ 8,000,000 $ 7,898,000 $ 8,494,000 $ 8,647,000 Annual Interest Earnings Rate 9 1.58% 1.58% 1.58% 1.58% 1.58% 1.58%
1. Unrestricted s of June 30, 2022 cash a. Source file: REDDING_SW 10 Year Plan FY 1921.xlsx .2. Beginning O&M Reserve Balance for FY 2018/19 is net of total beginning cash allocated to reserved funds.3. Transfer from the O&M Reserve Fund to Rolling Stock is per City staff estimates. Source file: REDDING_SW 10 Year Plan FY 1921.xlsx .4. Transfers to the Capital R&R Reserve Fund are per the City's 10Year Financial Plan. NBS assumes that the City will be transferring a minimum of $300K per year in order to meet the reserve target for future years beyond FY 2028/29.5. The O&M Reserve Fund is based on 90days of operating costs less utility and administration expenses.6. The beginning Capital R&R Reserve Fund balance is per City Staff estimates. Source file: REDDING_SW 10 Year Plan FY 1921.xlsx , CAP PLAN tab.7. The City maintains 7% of net assets for the Capital R&R Reserve Fund based on an average 15year expected life of assets.8. The beginning reserve balance for the Rolling Stock Fund is per City Staff estimates. Source file: REDDING_SW 10 Year Plan FY 1921.xlsx , Rolling Stock tab.9. The interest earning rate is based on the City's Pooled Cash Interest Rate. Source file: December 2018_Int Earning.pdf .
SUMMARY OF RESERVE FUND ACTIVITY Projected (4Year Rate Period) Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 750 Financial Plan, 2 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts and Report Tables
SOLID WASTE RATE STUDYRate Adjustment Charts and Report TablesCHART 1 $0 mil.$5 mil.
$10 mil.$15 mil.$20 mil.$25 mil.$30 mil.$35 mil.
2024 2025 2026 2027
Calendar Year
Solid Waste Revenue Requirements vs.
Revenue Under Existing and Recommended Rate Increases
Rolling Stock PurchasesRateFunded Capital ExpendituresDebt ServiceO&M ExpensesRevenues under Existing RatesRevenues under Increased Rates Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 751 Charts & Tables, 3 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts and Report Tables
SOLID WASTE RATE STUDYRate Adjustment Charts and Report TablesCHART 2 $10.60 mil.
$5.13 mil.
$2.70 mil.
$5.40 mil.
$0$2$4$6$8
$10$12
2024 2025 2026 2027
Calendar Year
Ending Cash Balance vs. Recommended Reserve Targets
Ending Reserves (Operating & Capital)Target Reserves (Operating & Capital) Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 752 Charts & Tables, 4 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts and Report Tables
SOLID WASTE RATE STUDYRate Adjustment Charts and Report TablesCHART 3 $23.7 mil. $24.7 mil. $24.6 mil. $25.4 mil.
$26.6 mil. $27.8 mil. $28.6 mil.
$29.9 mil. $30.7 mil.
$33.2 mil.
$0 mil.$5 mil.
$10 mil.$15 mil.$20 mil.$25 mil.$30 mil.$35 mil.
2023 2024 2025 2026 2027
Calendar Year
Comparison of Total Uses of Funds 2020 Rate Study vs. CY 2024 2020 Rate StudyFY'23/24
Total Use of Funds =
Expenses, RateFunded
CIP and Rolling Stock
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 753 Charts & Tables, 5 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts and Report Tables
SOLID WASTE RATE STUDYRate Adjustment Charts and Report TablesCHART 4 168
83 50
84 0
20406080
100120140160180
2024 2025 2026 2027
Fiscal Year Ending June 30
Solid Waste Utility Number of Days Cash on Hand
Days Cash on Hand90 Day Operating Reserve Target150Days Cash on Hand Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 754 Charts & Tables, 6 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Charts and Report Tables
SOLID WASTE RATE STUDYRate Adjustment Charts and Report TablesCHART 5
15.00%
8.00% 8.00%
6.00%
0%1%2%3%4%5%6%7%8%9%
10%11%12%13%14%15%16%
2024 2025 2026 2027
Fiscal Year Ending June 30
Projected Solid Waste Rate Increases
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 755 Charts & Tables, 7 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 3 : SOLID WASTE UTILITY REVENUE FORECAST 1, 2Solid Waste Utility Operating Revenue Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Rate Revenue Residential (Inflated at Growth Rate After '24) 1 $ 9,942,670 $ 10,011,595 $ 10,081,039 $ 10,148,617 $ 10,216,299Commercial Cans (Inflated at Growth Rate After '24) 1 357,680 360,160 $ 362,658 $ 365,089 $ 367,524 Commercial Containers (Inflated at Growth Rate After '24) 1 7,333,790 7,384,630 $ 7,435,852 $ 7,485,698 $ 7,535,621 Special Pickups 1 18,280 18,407 18,534 18,659 18,783Rolloff (Inflated at Growth Rate After '24) 1 2,633,490 2,651,746 $ 2,670,139 $ 2,688,039 $ 2,705,965 Fee Revenue
Co Reimb Ewaste 8 27,330 31,647 34,416 37,419 39,928Vol Drop Off 8 87,900 101,786 110,691 120,348 128,419Gate Revenue 3 8 2,385,000 2,761,764 3,003,394 3,265,409 3,484,417 Other Revenue
Real Estate Rental Direct 1,880 1,880 1,880 1,880 1,880Sale of Property 1 Bad Debt Writeoff 1 (25,000) (25,173) (25,348) (25,518) (25,688)Misc. Operating Rev. 1 36,530 36,783 37,038 37,287 37,535Cardboard 1 165,000 166,144 167,296 168,418 169,541White Paper 1 96,500 97,169 97,843 98,499 99,156Glass 1 19,970 20,108 20,248 20,384 20,520Curbside Recycling 1 123,500 124,356 125,219 126,058 126,899Multi Family Recycling 1 21,400 21,548 21,698 21,843 21,989Commercial Recycling 1 1,220 1,228 1,237 1,245 1,254Special Handle Metal 1 58,370 58,775 59,182 59,579 59,976Electronic Recycling 1 153,280 154,343 155,413 156,455 157,498Other Recycling Revenue 1 36,140 36,391 36,643 36,889 37,135Misc. Revenue 1 10,300 10,371 10,443 10,513 10,583Misc. Revenue 1 100 101 101 102 103Bad Debt Writeoff 1 (509) (512) (516) (519) (523)Co Reimb HHW 1 283,700 285,667 287,648 289,576 291,508Freon Recycling 1 Battery Recycling 1 10,920 10,996 11,072 11,146 11,221Vol Drop Off 1 13,010 13,100 13,191 13,279 13,368St. Cleaning Contract 7 16,680 16,680 16,680 16,680 16,680Investment Income O&M 7 100,000 $ 23,909,131 $ 24,351,689 $ 24,753,693 $ 25,173,073 $ 25,547,590 TABLE 4 : REVENUE FORECAST SUMMARY
$ 20,285,910 $ 20,426,538 $ 20,568,223 $ 20,706,101 $ 20,844,191 2,500,230 2,895,197 3,148,501 3,423,175 3,652,7651,022,991 1,029,954 1,036,970 1,043,797 1,050,634 100,000 $ 23,909,131 $ 24,351,689 $ 24,753,693 $ 25,173,073 $ 25,547,590 Total Operating Revenue
Rate RevenueFee RevenueOther RevenueInvestment Income
Total Revenue
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 756 Exhibit 1 (O&M), 8 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 5 : SOLID WASTE UTILITY EXPENSE FORECAST 1Solid Waste Administration Expenses Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular (Includes 1 Add'l FTE/Food Waste) 3 $ 939,000 $ 1,030,540 $ 1,096,610 $ 1,134,990 $ 1,174,710Overtime * 3 $ 5,000 $ 9,000 $ 9,450 9,780 10,120Accrued Pay Vacation 3Misc Pay Adjustment 3 $ 1,200 $ 7,600 $ 7,600 7,870 8,150Accrued Pay Sick Leave 3 Vacation Pay Back * 3 $ 15,000 $ 15,000 $ 15,750 16,301 16,872 Personnel Indirect
Worker's Comp Ins 3 18,850 20,590 21,640 22,400 23,180Group Ins Program 3 308,230 283,370 295,260 305,590 316,290Public Agency Retirement 3 244,620 392,600 204,820 211,990 219,410Retirement Program 3 314,120 299,620 334,630 346,340 358,460Medicare 3 13,620 14,950 15,900 16,460 17,040 Other Personnel Costs
Cross charges to and from other divisions 3 (480,250) (660,500) (693,000) (717,260) (742,360) Interdepartmental Costs
Cost Allocation Reimb * 7 181,030 201,380 207,420 207,420 207,420Fix Chg Bldg Maintenance 5 94,450 110,250 113,430 117,400 121,510Fix Chg Utility Customer 4 5 1,094,170 1,159,290 1,140,830 1,180,760 1,222,090Fix Chg Info Sys 5 145,120 110,780 85,950 88,960 92,070Fix Chg Print Shop 5 24,020 34,040 30,550 31,620 32,730Fix Chg Fleet Maint 5 7,950 14,640 14,890 15,410 15,950Fix Chg Risk Mgmt 5 47,060 46,810 48,480 50,180 51,940Fix Chg Records Mgmt 5 30,620 5,130 4,420 4,570 4,730Fix Chg Communication 5 3,780 8,760 8,910 9,220 9,540Fix Chg Permit Trkg Soft 5 6,100 Fix Reimb Public Wks Admin 5 114,750 182,010 156,520 162,000 167,670Fix Chg Volunteer Serv 5 1,990 2,110 1,950 2,020 2,090Fix Chg Employer Serv 5 12,750 14,920 12,580 13,020 13,480Fix Chg C/M/Public Rel 5 27,820 20,590 21,300 22,050 22,820O/H Admin 5 90,910 35,520 37,310 38,620 39,970ET/USA Locate 5 22,400 67,610 75,490 78,130 80,860Var Chg Mail 2 6,000 6,000 6,000 6,300 6,620 Other Costs
Prof Srvcs/Consult * 2 65,860 30,000 30,900 32,450 34,070Specialized Services * 2 3,500 4,200 4,320 4,540 4,770Vehicle Fuel & Lubricant * 2 7,000 8,750 9,000 9,450 9,920Office Equip Maint/Repair 2 Utility Expense 5 2 88,000 100,000 103,000 108,150 113,560Communication Expense 2 12,000 9,000 9,000 9,450 9,920Printing Repro Outside * 2 Operating Material/Supplies * 2 15,000 18,000 18,500 19,430 20,400Books Dues/Subscriptions * 2 1,200 1,200 1,200 1,260 1,320Property Taxes * 2 4,340 4,500 4,630 4,860 5,100Civic Center Rent * 2 26,830 26,830 26,830 28,170 29,580Travel Expense * 2 7,000 7,000 7,000 7,350 7,720Certification 2 Training 2 7,000 7,000 7,000 7,350 7,720Safety Training (Angela) * 2 3,000 3,000 3,000 3,150 3,310PC Computer Equipment 2 5,000 5,000 5,000 5,250 5,510SWIP Admin Office 2 Computer Software 2 Total: Solid Waste Administration Expenses $ 3,536,040 $ 3,657,090 $ 3,504,070 $ 3,623,001 $ 3,746,262 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 757 Exhibit 1 (O&M), 9 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 6 : SOLID WASTE UTILITY EXPENSE FORECAST 1Residential Collection Expenses (Division 551) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular * 3 $ 622,380 844,470 890,530 $ 921,700 $ 953,960Comp Time 3 Overtime * 3 30,000 45,000 47,250 48,900 50,610Accrued Pay 3 Vacation Pay Back 3 4,000 4,500 4,730 4,900 5,070 Personnel Indirect
Worker's Comp Insurance 3 65,860 89,370 94,240 97,540 100,950Group Ins Program 3 297,430 297,600 313,610 324,590 335,950Public Agency Retirement 3 41,680 118,310 62,960 65,160 67,440Retirement Program 3 208,990 249,220 275,460 285,100 295,080Medicare 3 9,030 12,250 12,920 13,370 13,840Unemployment Insurance 3 Other Personnel CostsCross charges to and from other divisions 3 4,890 3,520 6,070 5,230 4,360 Interdepartmental Charges
Cost Allocation Reimb 5 48,540 42,870 44,160 45,710 47,310Fix Chg Print Shop 6 590 640 660 680Fix Chg Fleet Maintenance 6 529,210 642,990 653,860 670,210 686,970Fix Chg Risk Management 6 30 10,630 11,660 11,950 12,250Fix Chg Communication 6 7,210 14,390 14,630 15,000 15,380Fix Chg GIS 6 9,710 6,240 10,360 10,620 10,890Fix Chg Volunteer Service 6 1,840 2,270 2,100 2,150 2,200Fix Chg Employer Service 6 11,770 16,070 13,550 13,890 14,240Fix Chg C/M/Public Rel 6 5,600 6,700 6,950 7,120 7,300ET/USA Locate 6 7,470 1,590 2,600 2,670 2,740Storm Drain 6 126,520 119,500 123,040 126,120 129,270 Other Costs
Specialized Services 2 5,500 5,500 5,500 5,780 6,070Vehicle Fuel & Lubricant * 2 249,500 251,000 258,500 271,430 285,000Work Equip Maint/Repair (Lids) * 2 15,000 20,000 20,000 21,000 22,050Utility Expense 5 4 1,100,000 1,080,000 1,100,000 1,130,460 1,161,580Operating Materials 2 10,000 8,000 8,500 8,930 9,380Waste Wheelers 2 97,500 100,000 105,000 110,250 115,760 Total: Residential Collection Expenses $ 3,509,660 $ 3,992,580 $ 4,088,820 $ 4,220,440 $ 4,356,330 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 758 Exhibit 1 (O&M), 10 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 7 : SOLID WASTE UTILITY EXPENSE FORECAST 1Commercial Collection Expenses (Division 552) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular * 3 $ 446,440 588,140 747,300 $ 773,460 $ 800,530Comp Time * 3 Overtime * 3 32,000 50,000 52,500 54,340 56,240Accrued Pay 3 81,000 106,500 110,230 114,090Vacation Pay Back 3 5,000 5,000 5,250 5,430 5,620 Personnel Indirect
Worker's Comp Ins 3 47,250 62,240 79,080 81,850 84,710Group Ins Program 3 140,990 169,730 218,570 226,220 234,140Public Agency Retirement 3 91,500 130,140 69,250 71,670 74,180Retirement Program 3 148,840 172,920 231,270 239,360 247,740Medicare 3 6,480 8,530 10,840 11,220 11,610 Other Personnel Costs
Cross charges to and from other divisions 3 (8,090) 47,900 51,300 53,100 54,960 Interdepartmental Costs
Cost Allocation Reimb 5 60,460 59,880 61,680 63,840 66,070Fix Chg Fleet Maintenance 6 588,450 582,740 592,600 607,420 622,610Fix Chg Risk Mgmt 6 19,800 36,660 40,100 41,100 42,130Fix Chg Communication 6 6,730 13,140 13,360 13,690 14,030Fix Chg Volunteer Serv 6 1,380 1,780 1,650 1,690 1,730Fix Chg Employer Service 6 8,830 12,620 10,650 10,920 11,190Fix Chg Legal Service 6 Fix Chg C/M Public Rel 6 4,550 5,330 5,530 5,670 5,810 Other Costs
Specialized Services 2 6,500 6,900 7,050 7,400 7,770Vehicle Fuel & Lubricant 2 200,000 233,000 239,000 250,950 263,500Work Equip Maint/Repair 2 25,000 25,000 25,000 26,250 27,560Utility Expense 5, 6 4 1,260,000 1,260,000 1,260,000 1,294,890 1,330,540Operating Material / Supplies * 2 35,000 38,000 39,200 41,160 43,220Sanitation Containers 2 180,000 175,000 180,000 189,000 198,450 Total: Commercial Collection Expenses $ 3,388,110 $ 3,684,650 $ 4,047,680 $ 4,180,860 $ 4,318,430 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 759 Exhibit 1 (O&M), 11 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 8 : SOLID WASTE UTILITY EXPENSE FORECAST 1RollOff Collection Expenses (Division 553) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular 3 $ 177,950 206,820 217,160 $ 224,760 $ 232,630Comp Time 3 Overtime * 3 18,000 30,000 31,500 32,600 33,740Accrued Pay Vacation 3 48,000 74,500Misc Pay Adjustment 3 7,290 9,390 9,810 10,150 10,510Vacation Pay Back 3 4,000 4,000 4,200 4,350 4,500 Personnel Indirect
Worker's Comp Ins 3 18,830 21,890 22,980 23,780 24,610Group Ins Program 3 71,850 68,020 71,640 74,150 76,750Public Agency Retirement 3 48,030 89,590 47,680 49,350 51,080Retirement Program 3 58,960 59,330 65,370 67,660 70,030Medicare 3 2,580 3,000 3,150 3,260 3,370 Other Personnel Costs
Cross charges to and from other divisions 3 163,250 166,200 173,800 179,880 186,180 Interdepartmental Costs
Cost Allocation Reimb 5 13,230 14,400 14,830 15,350 15,890Fix Charge Fleet Maint 6 154,580 165,530 168,330 172,540 176,850Fix Chg Risk Mgmt 6 Fix Chg Communication 6 2,890 5,630 5,730 5,870 6,020Fix Chg Volunteer Service 6 310 490 450 460 470Fix Chg. Employer Service 6 1,960 3,440 2,900 2,970 3,040Fix Chg. C/M/Public Rel 6 1,620 2,070 2,150 2,200 2,260 Other Costs
Vehicle Fuel & Lubricant * 2 124,400 158,000 163,000 171,150 179,710Work Equip Maint/Repair 2 11,860 8,000 8,000 8,400 8,820Utility Expense 5 4 509,250 525,000 525,000 539,540 554,390Operating Material/Supplies 2 4,500 4,500 4,500 4,730 4,970Drop Boxes 2 85,000 100,000 105,000 110,250 115,760 Total: RollOff Collection Expenses $ 1,528,340 $ 1,645,300 $ 1,721,680 $ 1,703,400 $ 1,761,580 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 760 Exhibit 1 (O&M), 12 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 9 : SOLID WASTE UTILITY EXPENSE FORECAST 1Resource Recovery Expenses (Division 556) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular 3 $ 1,148,910 1,428,770 1,573,020 $ 1,628,080 $ 1,685,060Full Time Temporary 3 16,000 18,510 18,510 19,160 19,830Comp Time 3 Overtime 3 75,000 100,000 105,000 108,680 112,480Accrued Pay Vacation 3 48,000 62,500Shift Differential 3 7,290 9,450 9,870 10,220 10,580Vacation Pay Back 3 15,000 20,000 21,000 21,740 22,500Accrued Pay/Comp Time 3 Personnel IndirectWorker's Comp Ins 3 123,280 153,160 168,420 174,310 180,410Group Ins Program 3 443,780 426,200 469,020 485,440 502,430Public Agency Retirement 3 155,520 289,690 154,480 159,890 165,490Retirement Program 3 382,030 415,400 480,400 497,210 514,610Social Security 3 Medicare 3 16,910 20,980 23,080 23,890 24,730 Other Personnel Costs
Cross charges to and from other divisions 3 (21,630) 50,000 52,500 54,330 56,220 Interdepartmental Costs
Cost Allocation Reimb 5 67,950 72,640 74,820 77,440 80,150Fix Chg Print Shop 5 540 590 640 660 680Fix Chg Fleet Mgmt 6 697,470 1,020,220 1,037,480 1,063,420 1,090,010Fix Chg Communication 5 9,140 11,890 12,090 12,510 12,950Fix Chg Volunteer Service 5 3,220 3,570 3,310 3,430 3,550Fix Chg Employer Service 5 20,600 25,250 21,290 22,040 22,810Fix Chg C/M/Public Rel 5 10,540 10,990 11,410 11,810 12,220Var Chg Mail 6 1,000 1,000 1,000 1,030 1,060 Other Costs
Specialized Srvcs/Tech 2 947,520 1,850,000 1,850,000 1,942,500 2,039,630Vehicle Fuel & Lubricant 2 463,900 590,000 605,000 635,250 667,010Work Equip Maint/Repair 2 120,750 135,000 150,000 157,500 165,380Tipping Fees (WCLF) 5 4 151,650 135,000 141,000 144,900 148,890Utility Expense (Litter Abatement) 5 4 101,070 90,000 94,000 96,600 99,260Communication Expense 2 1,000 1,000 1,000 1,050 1,100Communication Expense 2 Operating Material/Supply * 2 90,600 130,000 140,000 147,000 154,350Permit Fees 2 Advertising/Promotion * 2 50,000 50,000 50,000 52,500 55,130Books/Dues/Subscriptions 2 400 400 400 420 440Travel Expense 2 2,000 2,000 2,000 2,100 2,210Equipment Rental 2 12,140 10,000 10,000 10,500 11,030Litter Abatement 2 534,280 435,000 445,000 467,250 490,610Community Special Event * 2 5,200 5,200 5,200 5,460 5,730Drop Box 2 Waste Wheelers 2 227,500 200,000 210,000 220,500 231,530 Total: Resource Recovery Expenses $ 5,928,560 $ 7,711,910 $ 8,003,440 $ 8,258,820 $ 8,590,070 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 761 Exhibit 1 (O&M), 13 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 10 : SOLID WASTE UTILITY EXPENSE FORECAST 1Transfer Station Expenses (Division 557) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular * 3 $ 656,980 $ 754,040 $ 872,580 $ 903,120 $ 934,730Full Time Temporary 3 Part Time Permanent 3 Comp Time 3 Overtime 3 80,000 100,000 105,000 108,680 112,480Accrued Pay Vacation 3 69,000 51,700Misc Pay Adjustment 3 3,330 3,470 3,590 3,720Accrued Pay 3 Vacation Pay Back * 3 5,000 8,000 8,400 8,690 8,990 Personnel Indirect
Worker's Comp Ins 3 45,650 53,440 63,880 66,120 68,430Group Ins Program 3 268,860 279,820 313,160 324,120 335,460Public Agency Retirement 3 117,250 171,470 90,990 94,170 97,470Retirement Program 3 219,810 219,340 265,450 274,740 284,360Social Security 3 Medicare 3 9,530 10,940 12,660 13,100 13,560Unemployment Ins 3 Temp Employee Service * 3 Other Personnel CostsCross charges to and from other divisions 3 220,380 330,000 346,500 358,630 371,180 Interdepartmental Costs
Cost Allocation Reimb 5 43,330 39,130 40,300 41,710 43,170Fix Chg Information Systems 6 40,190 30,770 23,880 24,480 25,090Fix Chg Print Shop 6 1,590 1,560 1,600 1,640Fix Chg Fleet Maintenance 6 395,960 400,880 407,660 417,850 428,300Fix Chg Risk Mgmt 6 80 19,370 19,760 20,250 20,760Fix Chg Communication 6 1,440 3,130 3,180 3,260 3,340Fix Chg Reimb NDPES 6 89,420 99,270 104,290 106,900 109,570Fix Chg Volunteer Serv 6 1,990 2,270 2,100 2,150 2,200Fix Chg Employer Service 6 12,750 16,070 13,550 13,890 14,240Fix Chg C/M/Public Rel 6 6,640 7,710 8,000 8,200 8,410 Other Costs
Prof Srvcs/Consult * 2 15,000 15,000 15,500 16,280 17,090Specialized Srvcs/Tech * 2 25,000 25,000 25,000 26,250 27,560Vehicle Fuel & Lubricant 2 350,850 351,000 352,000 369,600 388,080Bank Fees * 2 28,080 29,000 29,000 30,450 31,970Work Equip Maint/Repair 2 119,600 100,000 105,000 110,250 115,760Utility Expense 5 4 1,248,000 1,305,000 1,340,000 822,226 822,227Communications Expense 2 550 550 550 580 610Communications Expense 2 Operating Materials * 2 52,000 60,000 62,000 65,100 68,360Adjustments A/P 2 Permit Fees 2 2,000 2,500 2,500 2,630 2,760Advertising/Promo 2 2,500 2,500 2,500 2,630 2,760Equipment Rental 2 12,140 5,000 5,000 5,250 5,510Computer Hardware under $5000 1,500 1,500 1,500Radios Under $5,000 * 2 8,000 5,200 5,200 5,460 5,730Fiscal/Paying Agent Fees 2 Total: Transfer Station Expenses $ 4,149,480 $ 4,452,820 $ 4,703,820 $ 4,251,956 $ 4,375,517 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 762 Exhibit 1 (O&M), 14 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 11 : SOLID WASTE UTILITY EXPENSE FORECAST 1Hazardous Household Waste Expenses (Division 558) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular 3 $ 258,430 $ 304,990 $ 326,630 $ 338,060 $ 349,890Full Time Temporary 3 16,480 18,510 18,510 19,160 19,830Comp Time 3 Overtime * 3 5,000 8,000 8,400 8,690 8,990Accrued Pay Vacation 3 44,000 104,500Misc Pay Adjustment 3 Vacation Pay Back 3 2,000 5,000 5,250 5,430 5,620 Personnel Indirect
Worker's Comp Ins 3 3,580 4,110 4,270 4,420 4,570Group Ins Program 3 80,510 75,690 79,800 82,590 85,480Public Agency Retirement 3 54,620 106,020 56,420 58,390 60,430Retirement Program 3 86,110 88,370 99,340 102,820 106,420Social Security 3 1,030 1,150 1,150 1,190 1,230Medicare 3 3,990 4,700 5,010 5,190 5,370 Other Personnel Costs
Cross charges to and from other divisions 3 (86,940) (86,000) (90,300) (93,470) (96,750) Interdepartmental Costs
Cost Allocation Reimb 5 4,780 6,390 6,580 6,810 7,050Fix Chg Information System 5 5,450 3,870 3,000 3,110 3,220Fix Chg Print Shop 5 590 640 660 680Fix Chg Fleet Maintenance 5 1,330 2,250 2,290 2,370 2,450Fix Chg Risk Mgmt 5 13,080 13,580 14,060 14,550Fix Chg Communication 5 1,920 3,130 3,180 3,290 3,410Fix Chg Volunteer Service 5 460 650 600 620 640Fix Chg Employer Service 5 2,950 4,590 3,870 4,010 4,150Fix Chg C/M/Public Rel 5 1,590 1,810 1,880 1,950 2,020Var Chg Mail 5 100 100 100 100 100 Other Costs
Specialized Srvcs/Tech * 2 205,910 190,000 195,700 205,490 215,760Vehicle Fuel & Lubricant * 2 400 400 400 420 440Communication Expense 2 1,200 1,200 1,200 1,260 1,320Communication Expense 2 Operating Materials/Supplies * 2 40,420 38,000 39,500 41,480 43,550Permit Fees 2 Advertising/Promotion 2 6,720 6,500 6,500 6,830 7,170Books/Dues/Subscriptions * 2 1,000 1,000 1,000 1,050 1,100Insurance Expense 2 Travel Expense 2 4,200 5,000 5,000 5,250 5,510Certification * 2 4,000 5,000 5,000 5,250 5,510 Total: Hazardous Household Waste Expenses $ 751,240 $ 814,100 $ 909,000 $ 836,480 $ 869,710 Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 763 Exhibit 1 (O&M), 15 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 12 : SOLID WASTE UTILITY EXPENSE FORECAST 1Street Sweeping Expenses (Division 559) Basis CY 2023 CY 2024 CY 2025 CY 2026 CY 2027Personnel Direct Full Time Regular 3 $ 109,870 $ 128,880 $ 135,330 $ 140,070 $ 144,970Comp Time 3 Overtime * 3 4,000 6,500 6,830 7,070 7,320Accrued Pay Vacation 3 83,500Accrued Pay 3 Personnel IndirectWorker's Comp Ins 3 11,630 13,640 14,320 14,820 15,340Group Ins Program 3 51,560 49,090 51,690 53,500 55,370Public Agency Retirement 3 43,480 81,100 43,160 44,670 46,230Retirement Program 3 35,960 36,120 39,840 41,230 42,670Medicare 3 1,600 1,870 1,970 2,040 2,110 Other Personnel Costs
Cross charges to and from other divisions 3 22,270 19,400 20,300 21,010 21,750 Interdepartmental Costs
Cost Alloc Reimb 5 11,200 14,380 14,810 15,330 15,870Cost Alloc Streets 7 818,770 888,360 918,570 918,570 918,570Fix Chg Fleet Maintenance 6 165,770 149,200 151,730 155,520 159,410Fix Chg Risk Management 6 Fix Chg Records Mgmt 5 1,730 Fix Chg Volunteer Services 6 310 320 300 310 320Fix Chg Employer Srvc 5 1,960 2,300 1,940 2,010 2,080Fix Chg C/M/Public Rel 5 1,610 1,950 2,020 2,090 2,160Fix Chg Storm Drain 5 56,970 119,640 181,330 Other Costs
Specialized Srvcs/Tech 2 Vehicle Fuel & Lubricant * 2 57,750 59,000 60,500 62,620 64,810Utility Expense 5 4 46,800 45,000 46,500 48,130 49,810Operating Materials/Supplies * 2 1,200 1,200 1,200 1,240 1,280Storm Drain Trash Capture Devices 2 131,000 110,000 110,000 $ 1,387,470 $ 1,498,310 $ 1,782,480 $ 1,759,870 $ 1,841,400$ 24,178,900 $ 27,456,760 $ 28,760,990 $ 28,834,827 $ 29,859,299 Total: Solid Waste Street Sweeping ExpensesGRAND TOTAL: OPERATING EXPENSE FORECAST Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 764 Exhibit 1 (O&M), 16 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYOperating Revenue and ExpensesTABLE 13 : FORECASTING ASSUMPTIONSEconomic Variables CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 1 Customer Growth 6 1 0.32% 0.69% 0.69% 0.67% 0.67%2 General Cost Inflation 7 2 0.00% 5.00% 5.00% 5.00% 5.00%3 Personnel Cost Inflation 8 3 0.00% 3.50% 3.50% 3.50% 3.50%4 Utility Inflation 9 4 0.00% 3.46% 2.78% 2.77% 2.75%5 Fixed Charges 5 0.00% 3.50% 3.50% 3.50% 3.50%6 Other Fixed Charges 6 0.00% 2.50% 2.50% 2.50% 2.50%7 Other 7 0.00% 0.00% 0.00% 0.00% 0.00%8 Fee Revenue 10 8 0.00% 15.80% 8.75% 8.72% 6.71%
1. FY 2021/22 budgeted revenue is from source file: REDDING_SW 10 Year Plan FY 1921 061819.xlsx . Revenues and expenses have been inflated at the allocated base rate for all years unless denoted by a (*) which means a future cost has been changed per the source file.2. Available cash balances, investment income, and transfers are excluded in the revenue forecast and are handled in the Financial Plan section of this model.3. Gate revenue is at the Transfer Station. Once the rates are approved, they are entered into the Master Fee Schedule and rounded down to the nearest dollar.4. The Fixed Charge Utility Customer is a cross charge from the Electric Utility for the billing process and call center.5. The Utility Expense is for tipping fees and utilities (e.g., lights, gas, water, etc.).6. Customer growth is set to the same rate used in the Financial Plans for the Water and Sewer Utilities. 7. General cost inflation is difficult to project based on recent inflation rates of approximately 8%. NBS assumes 5% in a reasonable projection.'8. Personnel cost inflation is assumed to be 3.5% per year per City Staff projections.9. The utility inflation factor is based on the annual tonnage multiplied by the tipping fee. Tipping fees are determined annually by the WCLF Budget.10. Fee Revenue is inflated by customer growth rates.
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 765 Exhibit 1 (O&M), 17 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCapital Improvement Plan ExpendituresTABLE 14 : SOURCES AND USES OF CAPITAL FUNDSCAPITAL FUNDING FORECAST Budget CY 2023 CY 2024 CY 2025 CY 2026 CY 2027
Grant $ $ $ $ $ Revenue Bond 1,050,000 441,000Capital R&R Reserve 2,200,000 2,142,000 Rate Revenue 1,658,350 Grand Total: Capital Funding Sources $ 1,658,350 $ 2,200,000 $ 2,142,000 $ 1,050,000 $ 441,000 Uses of Capital Funds:
Effective Annual Funding of Capital Expenditures $ 1,658,350 $ 2,200,000 $ 2,142,000 $ 1,050,000 $ 441,000Capital Funding Surplus (Deficiency) $ $ $ $ $ CAPITAL IMPROVEMENT PROGRAM TABLE 15 : CAPITAL IMPROVEMENT PROGRAM COSTS (in CurrentYear Dollars ) 1 2024 2025 2026 2027 2028
Transfer Station Tipping Floor $ 600,000Transfer Station Facility Resurface Asphalt 250,000 350,000Slurry Seal 102,000 75,000Crane Repairs 97,000 90,000 95,000Lift Station Retrofit 732,350Organics Recycling Pilot Program 250,000Administrative Office Remodel 117,000Solid Waste Investment Plan 50,000Transfer Station Facility Master Plan 60,000Materials Recovery Facility Expansion 1,600,000 1,600,000Transfer Station Expansion 1,000,000Marshalling Room Remodel 250,000 Total: Current Cost Estimate Per Year $ 1,658,350 $ 2,200,000 $ 2,040,000 $ 1,000,000 $ 420,000 TABLE 16 : CAPITAL IMPROVEMENT PROGRAM COSTS (in FutureYear Dollars ) 1 2024 2025 2026 2027 2028
Transfer Station Tipping Floor $ $ 600,000 $ $ $ Transfer Station Facility Resurface Asphalt 250,000 367,500 Slurry Seal 102,000 78,750Crane Repairs 97,000 94,500 99,750Lift Station Retrofit 732,350 Organics Recycling Pilot Program 250,000 Administrative Office Remodel 117,000 Solid Waste Investment Plan 50,000 Transfer Station Facility Master Plan 60,000 Materials Recovery Facility Expansion 1,600,000 1,680,000 Transfer Station Expansion 1,050,000 Marshalling Room Remodel 262,500 Total: Future Cost Estimate Per Year $ 1,658,350 $ 2,200,000 $ 2,142,000 $ 1,050,000 $ 441,000
1. CIP expenses are from source file: CIP 202227 Final Draft. Inflation is factored into Client provided data.2. Future projects beyond 2027 are estimated based on the average of ratefunded capital projects in FY 2023/24 FY 2028/29.
Funding Sources:
Projected (4Year Rate Period)
Solid Waste Division Capital Investment Plan 1Solid Waste Division Capital Investment Plan Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Packet Pg. 766 Exhibit 2 (CIP), 18 of 49 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 3
SOLID WASTE RATE STUDYDebt ServiceNEW DEBT FINANCING ASSUMPTIONSLongTerm Debt Terms Revenue Bonds Issuance Cost 2.00%Annual Interest Cost (%) 6.50%Term 30Debt Reserve Funded? YesCoverage Requirement (% above annual pmt) 25%
NEW DEBT OBLIGATIONS
Revenue Bond Repayment Schedules 2023 2024 2025 2026 2027 Principal Payment $ $ $ $ $ 322,026Interest Payment 1,677,974 Annual Revenue Bond Debt Service $ $ $ $ 2,000,000 $ Prepared by NBSwww.nbsgov.com | TollFree: 800.676.7516 Exhibit 3 (Debt), Page 19 of 49 Packet Pg. 767 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid CITY OF REDDING Exhibit 3
SOLID WASTE RATE STUDYDebt ServiceNEW DEBT FINANCING ASSUMPTIONSLongTerm Debt Terms Revenue Bonds Issuance Cost 2.00%Annual Interest Cost (%) 6.50%Term 30Debt Reserve Funded? YesCoverage Requirement (% above annual pmt)25%
NEW DEBT OBLIGATIONS
Revenue Bond Repayment Schedules 2023 2024 2025 2026 2027 2028 2029 Principal Payment $ $ $ $ 814,976 $ 867,949 $ 924,366 $ 984,450Interest Payment 4,575,572 4,522,599 4,466,182 4,406,098 Annual Revenue Bond Debt Service $ $ $ 5,390,548 $ 5,390,548 $ 5,390,548 $ 5,390,548 $ Prepared by NBSwww.nbsgov.com | TollFree: 800.676.7516 Exh 3B Debt Org.Coll., Page 20 of 49 Packet Pg. 768 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 17 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Solid Waste AdministrationPersonnel Direct $ 3,454,970 Full Time Regular (Includes 1 Add'l FTE/Food Waste) $ 1,030,540 $ 577,102 $ 329,773 $ 113,359 $ 10,305 56% 32% 11% 1%Overtime * $ 9,000 5,040 2,880 990 90 56% 32% 11% 1%Accrued Pay Vacation $ 56% 32% 11% 1%Misc Pay Adjustment $ 7,600 4,256 2,432 836 76 56% 32% 11% 1%Vacation Pay Back * $ 15,000 8,400 4,800 1,650 150 56% 32% 11% 1% Personnel Indirect
Worker's Comp Ins 20,590 11,530 6,589 2,265 206 56% 32% 11% 1%Group Ins Program 283,370 158,687 90,678 31,171 2,834 56% 32% 11% 1%Public Agency Retirement 392,600 219,856 125,632 43,186 3,926 56% 32% 11% 1%Retirement Program 299,620 167,787 95,878 32,958 2,996 56% 32% 11% 1%Medicare 14,950 8,372 4,784 1,645 149 56% 32% 11% 1% Other Personnel Costs
Cross charges to and from other divisions (660,500) (369,880) (211,360) (72,655) (6,605) 56% 32% 11% 1% Interdepartmental Costs
Cost Allocation Reimb * 201,380 112,773 64,442 22,152 2,014 56% 32% 11% 1%Fix Chg Bldg Maintenance 110,250 61,740 35,280 12,128 1,102 56% 32% 11% 1%Fix Chg Utility Customer 1,159,290 649,202 370,973 127,522 11,593 56% 32% 11% 1%Fix Chg Info Sys 110,780 62,037 35,450 12,186 1,108 56% 32% 11% 1%Fix Chg Print Shop 34,040 19,062 10,893 3,744 340 56% 32% 11% 1%Fix Chg Fleet Maint 14,640 8,198 4,685 1,610 146 56% 32% 11% 1%Fix Chg Risk Mgmt 46,810 26,214 14,979 5,149 468 56% 32% 11% 1%Fix Chg Records Mgmt 5,130 2,873 1,642 564 51 56% 32% 11% 1%Fix Chg Communication 8,760 4,906 2,803 964 88 56% 32% 11% 1%Fix Chg Permit Trkg Soft 56% 32% 11% 1%Fix Reimb Public Wks Admin 182,010 101,926 58,243 20,021 1,820 56% 32% 11% 1%Fix Chg Volunteer Serv 2,110 1,182 675 232 21 56% 32% 11% 1%Fix Chg Employer Serv 14,920 8,355 4,774 1,641 149 56% 32% 11% 1%O/H Admin 35,520 19,891 11,366 3,907 355 56% 32% 11% 1%ET/USA Locate 67,610 37,862 21,635 7,437 676 56% 32% 11% 1%Var Chg Mail 6,000 3,360 1,920 660 60 56% 32% 11% 1% Other Costs
Prof Srvcs/Consult * 30,000 16,800 9,600 3,300 300 56% 32% 11% 1%Specialized Services * 4,200 2,352 1,344 462 42 56% 32% 11% 1%Vehicle Fuel & Lubricant * 8,750 4,900 2,800 963 87 56% 32% 11% 1% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 21 of 49 Packet Pg. 769 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 17 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS, cont.
CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Solid Waste Administration, cont.
Utility Expense 100,000 56,000 32,000 11,000 1,000 56% 32% 11% 1%Communication Expense 9,000 5,040 2,880 990 90 56% 32% 11% 1%Operating Material/Supplies * 18,000 10,080 5,760 1,980 180 56% 32% 11% 1%Books Dues/Subscriptions * 1,200 672 384 132 12 56% 32% 11% 1%Property Taxes * 4,500 2,520 1,440 495 45 56% 32% 11% 1%Civic Center Rent * 26,830 15,025 8,586 2,951 268 56% 32% 11% 1%Travel Expense * 7,000 3,920 2,240 770 70 56% 32% 11% 1%Training 7,000 3,920 2,240 770 70 56% 32% 11% 1%Safety Training (Angela) * 3,000 1,680 960 330 30 56% 32% 11% 1%PC Computer Equipment 5,000 2,800 1,600 550 50 56% 32% 11% 1%SWIP Admin Office 56% 32% 11% 1%Computer Software 56% 32% 11% 1% Total: Solid Waste Administration Expenses $ 3,636,500 $ 2,036,440 $ 1,163,680 $ 400,015 $ 36,365 56.0% 32.0% 11.0% 1.0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 22 of 49 Packet Pg. 770 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 18 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Residential Collection ExpensesPersonnel Direct
Full Time Regular * $ 844,470 $ 844,470 $ $ $ 100% 0% 0% 0%Overtime * 45,000 45,000 100% 0% 0% 0%Accrued Pay 100% 0% 0% 0%Vacation Pay Back 4,500 4,500 100% 0% 0% 0% Personnel Indirect
Worker's Comp Insurance 89,370 89,370 100% 0% 0% 0%Group Ins Program 297,600 297,600 100% 0% 0% 0%Public Agency Retirement 118,310 118,310 100% 0% 0% 0%Retirement Program 249,220 249,220 100% 0% 0% 0%Medicare 12,250 12,250 100% 0% 0% 0% Other Personnel Costs
Cross charges to and from other divisions 3,520 3,520 100% 0% 0% 0% Interdepartmental Charges
Cost Allocation Reimb 42,870 42,870 100% 0% 0% 0%Fix Chg Fleet Maintenance 642,990 642,990 100% 0% 0% 0%Fix Chg Communication 14,390 14,390 100% 0% 0% 0%Fix Chg GIS 6,240 6,240 100% 0% 0% 0%Fix Chg Volunteer Service 2,270 2,270 100% 0% 0% 0%Fix Chg Employer Service 16,070 16,070 100% 0% 0% 0%ET/USA Locate 1,590 1,590 100% 0% 0% 0%Storm Drain 119,500 119,500 100% 0% 0% 0% Other Costs
Specialized Services 5,500 5,500 100% 0% 0% 0%Vehicle Fuel & Lubricant * 251,000 251,000 100% 0% 0% 0%Work Equip Maint/Repair (Lids) * 20,000 20,000 100% 0% 0% 0%Utility Expense 1,080,000 1,080,000 100% 0% 0% 0%Operating Materials 8,000 8,000 100% 0% 0% 0%Waste Wheelers 100,000 100,000 100% 0% 0% 0% Total: Residential Collection Expenses $ 3,985,880 $ 3,985,880 $ $ $ 100% 0% 0% 0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 23 of 49 Packet Pg. 771 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 19 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Commercial Collection ExpensesPersonnel Direct
Full Time Regular * $ 588,140 $ $ 588,140 $ $ 0% 100% 0% 0%Overtime * 50,000 50,000 0% 100% 0% 0%Accrued Pay 0% 100% 0% 0%Vacation Pay Back 5,000 5,000 0% 100% 0% 0% Personnel Indirect
Worker's Comp Ins 62,240 62,240 0% 100% 0% 0%Group Ins Program 169,730 169,730 0% 100% 0% 0%Public Agency Retirement 130,140 130,140 0% 100% 0% 0%Retirement Program 172,920 172,920 0% 100% 0% 0%Medicare 8,530 8,530 0% 100% 0% 0% Other Personnel Costs
Cross charges to and from other divisions 47,900 47,900 0% 100% 0% 0% Interdepartmental Costs
Cost Allocation Reimb 59,880 59,880 0% 100% 0% 0%Fix Chg Fleet Maintenance 582,740 582,740 0% 100% 0% 0%Fix Chg Communication 13,140 13,140 0% 100% 0% 0%Fix Chg Volunteer Serv 1,780 1,780 0% 100% 0% 0%Fix Chg Employer Service 12,620 12,620 0% 100% 0% 0%Fix Chg C/M Public Rel 5,330 5,330 0% 100% 0% 0% Other Costs
Specialized Services 6,900 6,900 0% 100% 0% 0%Vehicle Fuel & Lubricant 233,000 233,000 0% 100% 0% 0%Work Equip Maint/Repair 25,000 25,000 0% 100% 0% 0%Utility Expense 1,260,000 1,260,000 0% 100% 0% 0%Operating Material / Supplies * 38,000 38,000 0% 100% 0% 0%Sanitation Containers 175,000 175,000 0% 100% 0% 0% Total: Commercial Collection Expenses $ 3,684,650 $ $ 3,684,650 $ $ 0% 100% 0% 0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 24 of 49 Packet Pg. 772 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 20 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping RollOff Collection ExpensesPersonnel Direct
Full Time Regular $ 206,820 $ $ $ 206,820 $ 0% 0% 100% 0%Overtime * 30,000 30,000 0% 0% 100% 0%Vacation Pay Back 4,000 4,000 0% 0% 100% 0% Personnel Indirect
Worker's Comp Ins 21,890 21,890 0% 0% 100% 0%Group Ins Program 68,020 68,020 0% 0% 100% 0%Public Agency Retirement 89,590 89,590 0% 0% 100% 0%Retirement Program 59,330 59,330 0% 0% 100% 0%Medicare 3,000 3,000 0% 0% 100% 0% Other Personnel Costs
Cross charges to and from other divisions 166,200 166,200 0% 0% 100% 0% Interdepartmental Costs
Cost Allocation Reimb 14,400 14,400 0% 0% 100% 0%Fix Charge Fleet Maint 165,530 165,530 0% 0% 100% 0%Fix Chg Communication 5,630 5,630 0% 0% 100% 0%Fix Chg Volunteer Service 490 490 0% 0% 100% 0%Fix Chg. Employer Service 3,440 3,440 0% 0% 100% 0% Other Costs
Vehicle Fuel & Lubricant * 158,000 158,000 0% 0% 100% 0%Work Equip Maint/Repair 8,000 8,000 0% 0% 100% 0%Utility Expense 525,000 525,000 0% 0% 100% 0%Operating Material/Supplies 4,500 4,500 0% 0% 100% 0% Total: RollOff Collection Expenses $ 1,633,840 $ $ $ 1,633,840 $ 0% 0% 100% 0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 25 of 49 Packet Pg. 773 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 21 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Resource Recovery ExpensesPersonnel Direct
Full Time Regular $ 1,428,770 $ 800,111 $ 457,206 $ 157,165 $ 56% 32% 11% 0%Full Time Temporary 18,510 10,551 5,923 2,036 57% 32% 11% 0%Overtime 100,000 57,000 32,000 11,000 57% 32% 11% 0%Vacation Pay Back 20,000 11,400 6,400 2,200 57% 32% 11% 0% Personnel Indirect
Worker's Comp Ins 153,160 87,301 49,011 16,848 57% 32% 11% 0%Group Ins Program 426,200 242,934 136,384 46,882 57% 32% 11% 0%Public Agency Retirement 289,690 165,123 92,701 31,866 57% 32% 11% 0%Retirement Program 415,400 236,778 132,928 45,694 57% 32% 11% 0%Social Security 57% 32% 11% 0%Medicare 20,980 11,959 6,714 2,308 57% 32% 11% 0% Other Personnel Costs
Cross charges to and from other divisions 50,000 28,500 16,000 5,500 57% 32% 11% 0% Interdepartmental Costs
Cost Allocation Reimb 72,640 41,405 23,245 7,990 57% 32% 11% 0%Fix Chg Print Shop 590 336 189 65 57% 32% 11% 0%Fix Chg Fleet Mgmt 1,020,220 581,525 326,470 112,224 57% 32% 11% 0%Fix Chg Communication 11,890 6,777 3,805 1,308 57% 32% 11% 0%Fix Chg Volunteer Service 3,570 2,035 1,142 393 57% 32% 11% 0%Fix Chg Employer Service 25,250 14,393 8,080 2,778 57% 32% 11% 0%Var Chg Mail 1,000 570 320 110 57% 32% 11% 0% Other Costs
Specialized Srvcs/Tech 1,850,000 1,054,500 592,000 203,500 57% 32% 11% 0%Vehicle Fuel & Lubricant 590,000 336,300 188,800 64,900 57% 32% 11% 0%Work Equip Maint/Repair 135,000 76,950 43,200 14,850 57% 32% 11% 0%Tipping Fees (WCLF) 135,000 76,950 43,200 14,850 57% 32% 11% 0%Utility Expense (Litter Abatement) 90,000 51,300 28,800 9,900 57% 32% 11% 0%Communication Expense 1,000 570 320 110 57% 32% 11% 0%Operating Material/Supply * 130,000 74,100 41,600 14,300 57% 32% 11% 0%Advertising/Promotion * 50,000 28,500 16,000 5,500 57% 32% 11% 0%Books/Dues/Subscriptions 400 228 128 44 57% 32% 11% 0%Equipment Rental 10,000 5,700 3,200 1,100 57% 32% 11% 0%Litter Abatement 435,000 247,950 139,200 47,850 57% 32% 11% 0%Community Special Event * 5,200 2,964 1,664 572 57% 32% 11% 0%Waste Wheelers 200,000 200,000 100% 0% 0% 0% Total: Resource Recovery Expenses $ 7,700,920 $ 4,461,237 $ 2,400,294 $ 825,101 $ 58% 31% 11% 0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 26 of 49 Packet Pg. 774 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 22 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Transfer Station ExpensesPersonnel Direct 202022 3Yr Avg T.S Tonnages: 40.1% 49.3% 10.7% 0.0% Full Time Regular * $ 754,040 $ 302,029 $ 371,401 $ 80,611 $ 40.1% 49.3% 10.7% 0.0%Overtime 100,000 40,055 49,255 10,691 40.1% 49.3% 10.7% 0.0%Accrued Pay 40.1% 49.3% 10.7% 0.0%Vacation Pay Back * 8,000 3,204 3,940 855 40.1% 49.3% 10.7% 0.0% Personnel Indirect
Worker's Comp Ins 53,440 21,405 26,322 5,713 40.1% 49.3% 10.7% 0.0%Group Ins Program 279,820 112,081 137,825 29,914 40.1% 49.3% 10.7% 0.0%Public Agency Retirement 171,470 68,682 84,457 18,331 40.1% 49.3% 10.7% 0.0%Retirement Program 219,340 87,856 108,035 23,449 40.1% 49.3% 10.7% 0.0%Medicare 10,940 4,382 5,388 1,170 40.1% 49.3% 10.7% 0.0%Temp Employee Service * 40.1% 49.3% 10.7% 0.0% Other Personnel Costs
Cross charges to and from other divisions 330,000 132,181 162,541 35,279 40.1% 49.3% 10.7% 0.0% Interdepartmental Costs
Cost Allocation Reimb 39,130 15,673 19,273 4,183 40.1% 49.3% 10.7% 0.0%Fix Chg Information Systems 30,770 12,325 15,156 3,289 40.1% 49.3% 10.7% 0.0%Fix Chg Fleet Maintenance 400,880 160,571 197,452 42,856 40.1% 49.3% 10.7% 0.0%Fix Chg Communication 3,130 1,254 1,542 335 40.1% 49.3% 10.7% 0.0%Fix Chg Reimb NDPES 99,270 39,762 48,895 10,612 40.1% 49.3% 10.7% 0.0%Fix Chg Volunteer Serv 2,270 909 1,118 243 40.1% 49.3% 10.7% 0.0%Fix Chg Employer Service 16,070 6,437 7,915 1,718 40.1% 49.3% 10.7% 0.0% Other Costs
Prof Srvcs/Consult * 15,000 6,008 7,388 1,604 40.1% 49.3% 10.7% 0.0%Specialized Srvcs/Tech * 25,000 10,014 12,314 2,673 40.1% 49.3% 10.7% 0.0%Vehicle Fuel & Lubricant 351,000 140,592 172,884 37,524 40.1% 49.3% 10.7% 0.0%Bank Fees * 29,000 11,616 14,284 3,100 40.1% 49.3% 10.7% 0.0%Work Equip Maint/Repair 100,000 40,055 49,255 10,691 40.1% 49.3% 10.7% 0.0%Utility Expense 1,305,000 522,714 642,775 139,511 40.1% 49.3% 10.7% 0.0%Communications Expense 550 220 271 59 40.1% 49.3% 10.7% 0.0%Operating Materials * 60,000 24,033 29,553 6,414 40.1% 49.3% 10.7% 0.0%Permit Fees 2,500 1,001 1,231 267 40.1% 49.3% 10.7% 0.0%Advertising/Promo 2,500 1,001 1,231 267 40.1% 49.3% 10.7% 0.0%Equipment Rental 5,000 2,003 2,463 535 40.1% 49.3% 10.7% 0.0%Radios Under $5,000 * 5,200 2,083 2,561 556 40.1% 49.3% 10.7% 0.0% Total: Transfer Station Expenses $ 4,424,240 $ 1,772,117 $ 2,179,149 $ 472,974 $ 40.1% 49.3% 10.7% 0.0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 27 of 49 Packet Pg. 775 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 23 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Hazardous Household Waste ExpensesPersonnel Direct
Full Time Regular $ 304,990 $ 304,990 $ $ $ 100% 0% 0% 0%Full Time Temporary 18,510 18,510 100% 0% 0% 0%Overtime * 8,000 8,000 100% 0% 0% 0%Vacation Pay Back 5,000 5,000 100% 0% 0% 0% Personnel Indirect
Worker's Comp Ins 4,110 4,110 100% 0% 0% 0%Group Ins Program 75,690 75,690 100% 0% 0% 0%Public Agency Retirement 106,020 106,020 100% 0% 0% 0%Retirement Program 88,370 88,370 100% 0% 0% 0%Social Security 1,150 1,150 100% 0% 0% 0%Medicare 4,700 4,700 100% 0% 0% 0% Other Personnel Costs
Cross charges to and from other divisions (86,000) (86,000) 100% 0% 0% 0% Interdepartmental Costs
Cost Allocation Reimb 6,390 6,390 100% 0% 0% 0%Fix Chg Information System 3,870 3,870 100% 0% 0% 0%Fix Chg Fleet Maintenance 2,250 2,250 100% 0% 0% 0%Fix Chg Communication 3,130 3,130 100% 0% 0% 0%Fix Chg Volunteer Service 650 650 100% 0% 0% 0%Fix Chg Employer Service 4,590 4,590 100% 0% 0% 0%Var Chg Mail 100 100 100% 0% 0% 0% Other Costs
Specialized Srvcs/Tech * 190,000 190,000 100% 0% 0% 0%Vehicle Fuel & Lubricant * 400 400 100% 0% 0% 0%Communication Expense 1,200 1,200 100% 0% 0% 0%Operating Materials/Supplies * 38,000 38,000 100% 0% 0% 0%Advertising/Promotion 6,500 6,500 100% 0% 0% 0%Books/Dues/Subscriptions * 1,000 1,000 100% 0% 0% 0%Travel Expense 5,000 5,000 100% 0% 0% 0%Certification * 5,000 5,000 100% 0% 0% 0% Total: Hazardous Household Waste Expenses $ 812,290 $ 812,290 $ $ $ 100% 0% 0% 0% Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 28 of 49 Packet Pg. 776 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 24 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Street Sweeping ExpensesPersonnel Direct
Full Time Regular $ 128,880 $ 52,841 $ 63,151 $ 12,888 $ 41% 49% 10% 0%Overtime * 6,500 2,665 3,185 650 41% 49% 10% 0% Personnel Indirect
Worker's Comp Ins 13,640 5,592 6,684 1,364 41% 49% 10% 0%Group Ins Program 49,090 20,127 24,054 4,909 41% 49% 10% 0%Public Agency Retirement 81,100 33,251 39,739 8,110 41% 49% 10% 0%Retirement Program 36,120 14,809 17,699 3,612 41% 49% 10% 0%Medicare 1,870 767 916 187 41% 49% 10% 0% Other Personnel Costs
Cross charges to and from other divisions 19,400 7,954 9,506 1,940 41% 49% 10% 0% Interdepartmental Costs
Cost Alloc Reimb 14,380 5,896 7,046 1,438 41% 49% 10% 0%Cost Alloc Streets 888,360 364,228 435,296 88,836 41% 49% 10% 0%Fix Chg Fleet Maintenance 149,200 61,172 73,108 14,920 41% 49% 10% 0%Fix Chg Records Mgmt 41% 49% 10% 0%Fix Chg Volunteer Services 320 131 157 32 41% 49% 10% 0%Fix Chg Employer Srvc 2,300 943 1,127 230 41% 49% 10% 0% Other Costs
Vehicle Fuel & Lubricant * 59,000 24,190 28,910 5,900 41% 49% 10% 0%Utility Expense 45,000 18,450 22,050 4,500 41% 49% 10% 0%Operating Materials/Supplies * 1,200 492 588 120 41% 49% 10% 0% Total: Solid Waste Roads & Sweeping Expenses $ 1,496,360 $ 613,508 $ 733,216 $ 149,636 $ 41% 49% 10% 0% Grand Total: Operating Expenses 27,374,680 $ 13,681,471 $ 10,160,990 $ 3,481,566 $ 36,365 $ 50.0% 37.1% 12.7% 0.1%Classification of Expenses Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 29 of 49 Packet Pg. 777 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 25 : CLASSIFICATION OF EXPENSES FOR COST OF SERVICE ANALYSIS CY 2024
Total Revenue
Requirements Residential Commercial RollOff Street Sweeping Other Expenses
Debt Service Payments $ $ $ $ $ 50.0% 37.1% 12.7% 0.1%RateFunded Rolling Stock & Capital Expenditures $ $ $ $ $ 44.3% 40.1% 14.2% 0.1%TOTAL REVENUE REQUIREMENTS $ 27,374,680 $ 13,681,471 $10,160,990 $ 3,481,566 $ 36,365 50.0% 37.1% 12.7% 0.1% Less: NonRate RevenuesFee Revenue
Special Pickups $ (18,407) $ (9,233) $ (6,833) $ (2,341) $ 50.2% 37.1% 12.7% 0.0%Co Reimb Ewaste $ (31,647) $ (15,817) $ (11,747) $ (4,025) $ (42) 50.0% 37.1% 12.7% 0.1%Vol Drop Off (101,786) (40,770) (50,134) (10,881) 40.1% 49.3% 10.7% 0.0%Gate Revenue (2,761,764) (1,025,226) (1,248,402) (443,909) 37.1% 45.2% 16.1% 0.0% Other Revenue
Real Estate Rental (1,880) (943) (698) (239) 50.2% 37.1% 12.7% 0.0%Sale of Property 50.2% 37.1% 12.7% 0.0%Bad Debt Writeoff 25,173 25,173 100.0% 0.0% 0.0% 0.0%Misc. Operating Rev. (36,783) (18,450) (13,654) (4,679) 50.2% 37.1% 12.7% 0.0%Cardboard (166,144) (16,614) (149,529) 10.0% 90.0% 0.0% 0.0%White Paper (97,169) (97,169) 100.0% 0.0% 0.0% 0.0%Glass (20,108) (20,108) 100.0% 0.0% 0.0% 0.0%Curbside Recycling (124,356) (124,356) 100.0% 0.0% 0.0% 0.0%Multi Family Recycling (21,548) (21,548) 0.0% 100.0% 0.0% 0.0%Commercial Recycling (1,228) (1,228) 0.0% 100.0% 0.0% 0.0%Special Handle Metal (58,775) (29,481) (21,817) (7,476) 50.2% 37.1% 12.7% 0.0%Electronic Recycling (154,343) (77,418) (57,292) (19,632) 50.2% 37.1% 12.7% 0.0%Other Recycling Revenue (36,391) (18,253) (13,508) (4,629) 50.2% 37.1% 12.7% 0.0%Misc. Revenue (10,371) (5,202) (3,850) (1,319) 50.2% 37.1% 12.7% 0.0%Misc. Revenue (101) (51) (37) (13) 50.2% 37.1% 12.7% 0.0%Bad Debt Writeoff 512 257 190 65 50.2% 37.1% 12.7% 0.0%Co Reimb HHW (285,667) (277,950) (7,716) 97.3% 2.7% 0.0% 0.0%Battery Recycling (10,996) (5,515) (4,082) (1,399) 50.2% 37.1% 12.7% 0.0%Vol Drop Off (13,100) (5,247) (6,452) (1,400) 40.1% 49.3% 10.7% 0.0%St. Cleaning Contract (16,680) (6,839) (8,173) (1,668) 41.0% 49.0% 10.0% 0.0%Investment Income O&M 50.2% 37.1% 12.7% 0.0% Total: NonRate Revenue $ (3,943,558) $ (1,759,982) $ (1,619,679) $ (501,205) $ (42) 44.6% 41.1% 12.7% 0.0% NET REVENUE REQUIREMENTS $ 23,431,122 $ 11,921,490 $ 8,541,311 $ 2,980,361 $ 36,323 Allocation of Revenue Requirements 100% 51% 36% 13% 0%
Classification of Expenses
Budget Categories Residential Commercial RollOff Street Sweeping Basis of Classification
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 30 of 49 Packet Pg. 778 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Functionalization and ClassificationTABLE 26 : ADJUSTMENT TO CLASSIFICATION OF EXPENSESAdjustment for Current Rate Level: Total Residential Commercial RollOff Street Sweeping FY 2023/24 Target Rate Rev. After Rate Increases $ 23,469,351Current Level of Rate Revenue 20,408,131FY 2023/24 Projected Rate Increase 15.0%Adjusted Net Revenue Req'ts $ 23,469,351 $ 11,940,940 $ 8,555,246 $ 2,985,224 $ 36,382 Percent of Revenue 51% 36% 13% 0%
1. This was adjusted to reflect the full rate increase vs. revenue from delayed effective date of Jan. 1, 2020 for rate increases.
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Funct. & Classification, 31 of 49 Packet Pg. 779 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid
CITY OF REDDING
SOLID WASTE RATE STUDYCost of Service Analysis Allocation FactorsTABLE 27 : TONNAGE ALLOCATION FACTORSSolid Waste Tonnage Allocation Factors:
Avg. 202022
Tonnage
Tonnage
Allocation Factors
(% of Total)
2020 Study % from 2020 Study
Residential 32,271 44.3% 32,508 44.2%Commercial 29,197 40.1% 30,522 41.5%Roll Off 10,382 14.2% 9,414 12.8%Street Sweeper 1 1,034 1.4% 1,138 1.5%Total 72,885 100.0% 73,581 100.0%
1. Adjusted to account for Greenwaste (City Trucks YW to Compost) at the TS from Residential yardwaste collection. TS greenwaste % allocated to Residential Carts: 75.0% TABLE 28 : ACCOUNTS / PICKUPS PER WEEK ALLOCATION FACTORSSolid Waste Accounts / Pickups Per Week Allocation Factors:
Type of Account/Service # of Accounts (or Unsch. Lifts) % of Total Accounts/ Pickups 2020 Study % Change from 2020 Study Resid. Carts (Includes Comm. Carts) 28,109 79.7% 28,625 82.9%Commercial (Compactor & Container Accts) 5,114 14.5% 4,541 13.1%Drop Boxes (No. of Unscheduled Pickups) 2,044 5.8% 1,368 4.0%Total 35,267 100% 34,534 100% Data is from source file: June 2022 Waste Wheeler Revenue.pdf and June 2022 Fixed Charge Report with notes.pdf .
TABLE 29 : TONNAGE & ACCOUNTS / PICKUPS PER WEEK COMBINED ALLOCATION FACTORS (based on data above) Customer Class
Tonnage
Allocation
Factor
Accounts /
Pickups Allocation
Factor
Combined
Allocation
Factor 1
Residential 44.3% 79.7% 56.0%Commercial 40.1% 14.5% 32.0%Roll Off 14.2% 5.8% 11.0%Street Sweeper2 1.4% N.A. 1.0%Total 100.0% 100.0% 100.0%
1. This is the weighted average of the Tonnage (2/3) and Accounts/pickups (1/3) factors.2. Reallocated to Residential, Commercial, and Rolloff customer classes.
Customer Class
Prepared by NBSwww.nbsgov.com | TollFree: 8006767516 Allocation Factors, 32 of 49 Packet Pg. 780 Attachment: Cost of Service Rate Study Sept '23 (6.1--Public Hearing re: Water, Wastewater and Solid TABLE 30 : Residential Allocation Percentages
Customer Class/Type Size Units Cost/Unit Estimated Replacement Costs 45 gal. 1,285 $61.52 $79,06664 gal. 4,318 $61.52 $265,65296 gal. 22,506 $72.10 $1,622,693 Subtotal $1,967,410.98
Customer Class/Type Size Units CY/Unit/Week Estimated Annual Volume (CY/Yr.) 45 gal. 1,285 0.223 14,89064 gal. 4,318 0.317 71,15296 gal. 22,506 0.475 556,263 Subtotal 642,305
Customer Class/Type Size Units % of Carts by Size
45 gal. 1,285 4.6%64 gal. 4,318 15.4%96 gal. 22,506 80.1% Subtotal 28,109 100.0%
Organics 48 gal. $60.10 $0
64 gal. $67.01 $0
2 CY $1,477.76 $0
Subtotal $0.00
Commercial Containers 1.5 CY Replaced by 2 CY N.A.
2 CY $1,104.12 $03 CY $1,227.46 $04 CY $1,554.42 $06 CY $2,024.43 $08 CY $2,439.08 $0 Subtotal $0.00
Roll Off/Drop Boxes 10 CY $6,355.19 $0
20 CY $7,528.50 $030 CY $9,657.66 $040 CY $10,499.64 $0 Subtotal $0.00
Total 0.0% 112,438 $44,193.52 $1,967,410.98