City of Salinas Industrial RatesPublic Hearing
Brian Frus, Senior Civil Engineer, Public Works Department April 4, 2023 City of Salinas IWTF Improvement Project
City of Salinas IWTF Improvement Project
The City’s Industrial Wastewater System Provides Regional and Recycled Water Benefits Serves 23 existing industrial customers
Existing Infrastructure connects to M1W plant for regional reuse 2 Salinas Industrial Waste Treatment Facility (IWTF)
Treatment Plant No 1. Site (TP1)
M1W Regional Treatment Plant (RTP)
Conveys flows from TP1 and IWTF to the RTP
Stormwater capture and conveyance
Required Near-Term Improvementsto Meet Goals and Objectives Provide reliability and redundancy to treat industrial wastewater and convey to end users, including:
Replace aged and unusable equipment
Provide redundant equipment and backup power supplies
Add reliability and capacity to transfer wastewater to the IWTF and then treated water to M1W for reuse Increase IWTF treatment capacity from 4 to 5.5 million gallons per day (mgd) Improve control of the facilities and ability transfer wastewater for maintenance of system Add energy and operational efficiency features to the IWTF
Near-Term Collection System Improvements - Airport Lift Station Increase firm capacity:
4 mgd to 6 mgd peak flow
To adequately serve industrial users
5 New pipeline to P3 PS all along existing road with turnouts and transfer structures/pump stations Coffer dam and gate
Electrical improvements on berm of aeration lagoon, including backup generators New aerators in lagoon
Pond 3 PS – new pumps
Near-Term IWTF Improvements
How do we pay for these improvements? Rates and Fees….
Voted on by users per California Prop 218 Process
Not Subject to Vote in the Prop 218 Process
Rate Study Process
Cost-of-Service Analysis Results
8 Rate Components
Monthly Service Fee
Fixed charge per account
Flow
MG of average monthly flow
BOD
Pounds of monthly BOD
CURRENT RATE COMPONENTS
Reservation Capacity Fee
Monthly charge per MG of capacity allotment
Monthly Service Fee
Fixed charge per account
Flow
MG of average monthly flow
BOD
Pounds of monthly BOD
NEW RATE COMPONENTS
Industrial Wastewater 5-Year Rate Schedule
Description
Current
FY 2024*
FY 2025
FY 2026
FY 2027
FY 2028
Rate Increase
22.0%
22.0%
2.0%
2.0%
2.0%
Monthly Service Charge
Per Account
$415
$ 263
$ 321
$ 327
$ 334
$ 341
Per Reserved Capacity (MG)
-
$ 91
$ 111
$ 113
$ 115
$ 117
Volumetric Rates
Flow (average MG per mo.)
$ 1,036
$ 1,389
$ 1,695
$ 1,729
$ 1,764
$ 1,799
BOD (average pounds per mo.)
$ 0.28
$ 0.29
$ 0.35
$ 0.36
$ 0.37
$ 0.38
*Bill impacts will be variable per industry due to rate structure change and cost-of-service analysis results.
Why Rate Increases are Needed
The industrial system is already overallocated
Improvements will pay for consistent service to existing and new users Rates have not been raised in over 10-years
Inflation and cost to maintain the industrial system have risen