6/15/2023
1 RiversideCA.gov1
RiversideCA.gov
WATER UTILITYFIVE-YEAR RATE PLAN PROPOSALCity CouncilJune 27, 2023Public Utilities Department RiversideCA.gov2
PROPOSED RESIDENTIAL 5 YEAR WATER RATE PLANWATER: $0.15 Per Day ELECTRIC: $0.21 Per Day REFUSE: + $0.09 Per Day $0.45 Per Dayor$13.50 Per Month Average rate increase per year for 5 years
6/15/2023
2 RiversideCA.gov3
PROPOSED RATESIn year 1, the rate increase will amount to an additional $4.07 per month for the average residential customer or the Price ofOne and a Half Cups of Coffee
RiversideCA.gov4
WATER RATE PLAN COMPARISONAverage Residential Monthly Bill at 21 CCF Per Month – Year OneRPURPU RATES REMAIN LOWRPU = 66K Service Connections 6/15/2023
3 RiversideCA.gov5
OVERVIEW OF WATER
100%of the City’s potable (drinking) water has been supplied from local groundwater sources since 200966KService ConnectionsCurrent Rate Plan Expires 6/30/2023 Established1913Highest State operational classification rating due to size and complexity Riverside Public UtilitiesWestern Municipal Water DistrictEastern Municipal Water District RiversideCA.gov6
OVERVIEW OF WATERMaintain826 MilesWater Distribution Pipeline Expected Useful Life: 35-40 yearsAverage age of system: 47 years35%are over 50 years old 1-50 Years Old (57%)50-80 Years Old (35%)80+ Years Old (8%) 6/15/2023
4 RiversideCA.gov7
WATER RELIABILITYTypes of Leaks 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Main Leaks122 112 96 114 125 107 116 131 81 126 102Service Leaks1,102 1,105 1,025 1,014 1,029 1,117 1,199 1,221 1,158 1,130 1,172RPU responded to an average of 3.6 leaks per day over the last ten years.
RiversideCA.gov8
WATER SUPPLY-GROUNDWATER BASINSRPU produces water from fourgroundwater basins adjacentto the Santa Ana River•San Bernardino (Bunker Hill)•Rialto-Colton•Riverside North•Riverside South
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5 RiversideCA.gov9
RPU team members work 24/7 to keep the water flowingRPU: ALL DAY EVERY DAY RiversideCA.gov10
WATER SUPPLY-FACILITIES
Pressure Stations60Water Treatment Facilities6Reservoirs1650Domestic Wells 6/15/2023
6 RiversideCA.gov11
WATER SUPPLY-FACILITIES34 Milesof Supply Pipeline
System “Arteries”(16-72 inches)98 Milesof Transmission Pipeline826 Milesof Distribution Pipeline RiversideCA.gov12
GROUND WATER SUPPLY CHALLENGES Sustainability Challenges to Riverside Requiring Vital SolutionsCity of Riverside GrowthWater RightsClimate ChangeGroundwater Conditions2040 Potable & Recycled Water DemandWater Quality Regulation Changes
6/15/2023
7 RiversideCA.gov13
Water Wheeling & Surplus Water Sales•Sale of surplus water supply and delivery to neighboring water utilities•$4.5 to $6.0 million in annual revenue Payments for Water Clean Up Costs•Treatment plants and operational costs currently paid by Lockheed Martin CorporationWHAT’S BEEN DONE TO KEEP RATES LOW RiversideCA.gov14
HISTORY OF WATER RATESWater Rate Increase11/1/200910.00%11/1/201010.00%7/1/20110%7/1/20120%7/1/20130%7/1/20140%7/1/20150%7/1/20160%7/1/20170%No Rate Increases from 2011 - 2017 6/15/2023
8 RiversideCA.gov15
HISTORY OF WATER RATESWater Rate Increase7/1/20184.50%7/1/20195.75%7/1/20205.75%7/1/20215.75%7/1/20226.50%Current Rate Plan Expires 6/30/2023 RiversideCA.gov16
THE WHY0.010.020.030.040.050.060.070.02011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023RPU Water Rate Increases vs CPI (Water & Sewerage Index)Cumulative Rate IncreaseCumulative Increase in Water CPI 6/15/2023
9 RiversideCA.gov17
Increased construction/equipment costsThe State of California drought messaging and increased Citywide water efficiency have decreased water revenue without decreasing operational costs2011 – 2017 there were no rate increases resulting in a Water Fund Balance that doesn’t meet the minimum reserve levels set by City Council without the line of credit.THE WHY RiversideCA.gov18
THE WHY($40)($20)$0$20$40$60$80FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028MillionsUndesignated Reserves WITHOUTRate IncreasesUndesignated Cash BalanceLine of CreditGeneral Fund SubsidyMin Target 6/15/2023
10 RiversideCA.gov19
90.2%9.3%0.5%WATER CUSTOMER COUNTSResidential - 59,876Commercial/ Industrial- 6,153Other - 343Total Customer Count - 66,37262.8%33.8%3.4%WATER YTD ACTUAL REVENUESResidential - $45,784Commercial/Industrial - $24,635Other - $2,446(In Thousands)Total Water Revenues - $72,865WATER CUSTOMER STATISTICSNote: As of June 30, 2022; Commercial includes Landscape and City Interruptible. Other includes Agriculture, Recycled, Hydrants, Fire and Temp.
RiversideCA.gov20
PROPOSED WATER 5-YEAR RATE PLANCustomer Class Customers Year 1% IncreaseYear 2% IncreaseYear 3% IncreaseYear 4% IncreaseYear 5% IncreaseSingle Family Residential (3 tiers per class)58,731 5.7% 6.6% 6.6% 6.7% 6.6%Multi Family Residential (2 tiers per class)1,145 4.6% 6.6% 6.6% 6.7% 6.6%Commercial/ Industrial5,137 8.6% 6.0% 6.1% 6.3% 6.0%Landscape500 13.6% 5.9% 5.8% 6.1% 5.8%City Interruptible/ Recycled530 5.8% 6.3% 6.0% 5.8% 6.3%Agriculture (up to 3 tiers per class)224 1.8% 6.4% 6.5% 6.4% 6.5%Riverside Water Co. Irrigators (3 tiers per class)24 19.3% 7.1% 7.0% 7.2% 6.9%Temporary Service72 12.0% 7.0% 6.9% 7.1% 7.0% 6/15/2023
11 RiversideCA.gov21
PROPOSED WATER 5-YEAR RATE PLANSingle Family Customer Class ExamplesAvg CCFUsage(Tier 1 and Tier 2)Year 1% IncreaseAverage Years 2-5% IncreaseResidential - Low User 10 3.8% 6.7%Residential – Typical 21 7.0% 6.6%Residential - High User 26 7.1% 6.6%$0.15Average Cost Per Day over 5 years at 21 CCF $4.07Average Monthly increase year 1 at 21 CCF
RiversideCA.gov22
PROPOSED WATER 5-YEAR RATE PLANCustomer ClassAvg CCFUsage (Tier 1)Year 1% IncreaseAverage Years 2-5% IncreaseCommercial/ Industrial Example37 8.5% 6.1%$0.26Average Cost Per Dayover 5 years $9.02Average monthly increase year 1
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12 RiversideCA.gov23
THE WHY($40)($20)$0$20$40$60$80FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028MillionsUndesignated Reserves WITHOUTRate IncreasesUndesignated Cash BalanceLine of CreditGeneral Fund SubsidyMin Target RiversideCA.gov24
THE WHY$0$20$40$60$80FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028MillionsUndesignated Reserves WITHProposed 5-Year Rate PlanUndesignated Cash BalanceLine of CreditMin Target 6/15/2023
13 RiversideCA.gov25
WATER RATE PLAN COMPARISONAverage Residential Monthly Bill at 21 CCF Per Month – Year OneRPURPU RATES REMAIN LOWRPU = 66K Service Connections RiversideCA.gov26
Income qualification based on 250% of the Federal poverty income guideline and the number of people in the household.LOW INCOME PROGRAMS - WATER$3.25Current Monthly Water SHARE Credit$4.25Projected future Monthly Water SHARE Credit2,144Residential Water Customers Assisted (01/2023)Established1989 Sharing Households Assist Riverside’s Energy (SHARE) Program 6/15/2023
14 RiversideCA.gov27
WATER EFFICIENCY PROGRAMS
Turf ReplacementHigh Efficiency Clothes Washers
Rotating Sprinkler Nozzles
Premium High Efficiency ToiletsWeather Based Irrigation ControllersAdditional Information on Programs & Rebates available at:RiversidePublicUtilities.com/Rebates RiversideCA.gov28
$15.5M ($8.5 existing appropriation, $7.0 additional appropriation)Diversifies Riverside’s water supply portfolio options while securing additional perpetual water rights. Ensures water supply reliability for current and future demand. Future Proofing EXPAND WATER SUPPLY PORTFOLIO Seven Oaks Dam Enhanced Recharge
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15 RiversideCA.gov29
$12M ProjectCreates a regional recycled water pipeline to deliver recycled water to irrigation customers and improves select tributariesEXPANDED WATER SUPPLY PORTFOLIORiverside Habitat Parks & Water Project West Branch Habitat Conservation Plan Tributaries Restoration$0.75M ProjectAdds resiliency to local water supplies through sustainable and environmentally ethical efforts, working to revitalize the Santa Ana River.
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40WHAT’S NEXTBoard ofPublic UtilitiesJune 12, 2023City CouncilJune 27, 2023Mail Notice of Public HearingJuly 2023Board of Public Utilities Public Hearing and Rate ConsiderationAugust 14 or 28, 2023City Council Public Hearing and Rate Consideration September 19, 2023 6/15/2023
16 RiversideCA.gov31
RECOMMENDATIONSThat the City Council:1. Conceptually approve the water utility five-year rate plan proposal; and2. Direct the City Manager to prepare all documents necessary for public noticing of the rate proposal, to update proposed rate schedules to reflect changes due to the rate proposal, and to update any other documents necessary for the public hearing to be held before the City Council on September 19, 2023, with new rates effective October 1, 2023.