Salinas City Council
July 1, 2025

DONNA SEGURA, DIRECTOR
JULY 1, 2025
Recommended Motion
A motion to approve resolutions approving the Engineer’s Reports, confirming the diagrams and levy amounts, and authorizing the levy and collection of annual assessments for Fiscal Year 2024-25 for the landscape maintenance assessment districts, and approving General Fund transfers to cover the parks and open space maintenance costs associated with the special benefits received by parcels outside the LMAD’s boundaries.

Executive Summary
The City Council’s approval is needed to process the annual levy of assessments within the city’s six lighting and landscaping districts Fiscal Year 2025/26 in compliance with the procedures of CA Streets and Highways Code Sections 22620-22641.

Background
The City has established six Landscape Maintenance Assessment Districts (the “LMADs”), governed by Article II, Chapter 21C of the City of Salinas Municipal Code and the Landscaping and Lighting Act of 1972. The LMADs fund the following.

ASSESSMENT RATES

THANK YOU
PRESENTED BY Donna Segura
Harris & Associates,
Inc.
www.WeAreHarris.com
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-247, Version: 1
Vacation of Right-of-Way and Dedication of Right-of-Way at the Intermodal Transportation Center (ITC) and Acceptance of Completed Salinas Rail Kick-Start Package 1 Improvements for the Monterey County Rail Extension Project
Approve a Resolution vacating former alignment of Station Place right-of-way, Railroad Avenue and related access, roadway and pedestrian access, access and utilities, and water line easements, and a 25-foot-wide alley; and Renaming Railroad Avenue to Station Place; and dedicating right-of-way for new “Station Place” and extension of Lincoln Avenue; and dedicating water line easements; and Accepting the Monterey County Rail Extension Project Salinas Rail Kick-Start Package 1 completed improvements for maintenance and responsibility.

City of Salinas Page 1 of 1 Printed on 6/26/2025
powered by Legistar™
Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: JULY 1, 2025
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: ADRIANA ROBLES, CITY ENGINEER

MARIA CONTRERAS, MANAGEMENT ANALYST
TITLE: VACATION OF RIGHT-OF-WAY AND DEDICATION OF RIGHTOF-WAY AT THE INTERMODAL TRANSPORTATION CENTER (ITC) AND ACCEPTANCE OF COMPLETED SALINAS RAIL
KICK-START PACKAGE 1 IMPROVEMENTS FOR THE
MONTEREY COUNTY RAIL EXTENSION PROJECT.

RECOMMENDED MOTION:

A motion to approve a Resolution:

1. Vacating former alignment of Station Place right-of-way, Railroad Avenue and related access easement, roadway and pedestrian access easement, access and utilities easement, and water line easement, and a 25-foot-wide alley, as shown on sheet 2 of Exhibit B; and

2. Renaming Railroad Avenue to Station Place; and

3. Dedicating right-of-way for new “Station Place”, as shown on sheet 3 of Exhibit B; and

4. Dedicating right-of-way for the extension of Lincoln Avenue, as shown on sheet 3 of Exhibit B; and

5. Dedicating water line easements 1 through 5, as shown on sheet 4 of Exhibit B; and

6. Accepting the Monterey County Rail Extension Project Salinas Rail Kick-Start Package 1 completed improvements for maintenance and responsibility.

EXECUTIVE SUMMARY:

In August 2022, the City Council authorized a Transfer Agreement of the Intermodal Transportation Center (ITC) property and completed Salinas Rail Kick-Start Package 1 improvements between the City of Salinas and TAMC, and in December 2022, the City took ownership of said property by way of nine (9) quitclaim deeds. Staff proposes to merge and subdivide the multiple parcels of the ITC property via a Parcel Map, formalizing the developed site into Parcels 1, 2, and 3, and concurrently formalizing the street vacation of the former alignment of Station Place right-of-way, portions of Railroad Avenue right-of-way, a 25-foot-wide alley, related public access and utility easements, including the dedication of the extension of Lincoln Avenue and dedication of right-of-way for new Station Place, and dedication of water line easements 1 through 5. In addition, the completed Salinas Rail Kick-Start Package 1 improvements Page | 2
for the Monterey County Rail Extension Project need to be accepted for maintenance and responsibility by the City.

BACKGROUND:

The City of Salinas Intermodal Transportation Center (ITC) is located northwest at the intersection of North Main Street and West Market Street (also designated State Route 183 on both streets). In 1998, the City of Salinas acquired the Salinas Amtrak Train Station and surrounding property through the former Redevelopment Agency. In February 2017, the City of Salinas and the Transportation Agency for Monterey County (TAMC) entered into a Memorandum of Understanding (“MOU”) regarding the redevelopment of the area surrounding the Salinas Train Station at the Intermodal Transportation Center (ITC) into a transit facility to accommodate new commuter passenger rail services outside the region in support of the Monterey County Rail Extension Project (the ”Project”), Resolution No. 21119 (Attachment 1).

The MOU outlined several capital improvement activities and responsibilities between the two agencies and identified TAMC as the leading agency for the development of the Project, including funding, planning, applicable state and federal environmental review, design, right-of-way acquisition, and construction of the Project. The Salinas Rail Kick-Start Package 1 improvements are the first phase of the Monterey County Rail Extension Project and included demolition of the former Station Place street, adjacent buildings, sidewalks and parking lots; construction of two parking lots to accommodate new commuter passenger rail services (totaling 287 parking stalls); construction of the extension of Lincoln Avenue across West Market Street (State Route 183) providing signalized access from West Market Street to the ITC; construction of a bus turnaround facility with 5 bus bays, passenger drop-off and loading zone; installation of drought resistant landscaping, stormwater retention facilities, bicycle lanes, and bicycle parking (EXHIBIT A).

These improvements were completed on March 4, 2021, received construction completion approval by the TAMC Board on December 21, 2021, and were transferred to the City in August 2022 via a Transfer Agreement between the City of Salinas and TAMC by way of nine (9) quitclaim deeds, Resolution No. 22451 (Attachment 2).

Following the transfer of the ITC property and the completed Salinas Rail Kick-Start Package 1 improvements, the City took ownership of all ITC property in December 2022. As there are multiple lots of record involved with the ITC property, a lot merger and re-subdivision Parcel Map (the “Parcel Map”) has been prepared combining the effected multiple lots of record and resubdividing the area into Parcels 1, 2, and 3 to better represent the developed site (Exhibit B).

However, the City must vacate all abandoned rights-of-way as well as accept the dedicated rightsof-way for the proposed subdivision of land to be allowed.

Vacation of Rights-of-Way:

The rights-of-way to be vacated are as follows:
 25-foot-wide alley (right-of-way to be vacated).
 Railroad Avenue and related access easement, roadway and pedestrian access easement, access and utilities easement, and water line easement (right-of-way to be vacated).  Station Place (former right-of-way alignment) (right-of-way to be vacated).

Page | 3
Vacation and Dedication of Rights-of-Way:

The rights-of-way to be dedicated are as follows:
 Lincoln Avenue (right-of-way to be dedicated).
 Station Place (new right-of-way alignment to be dedicated).

The rights-of-way to be vacated and/or dedicated at the ITC are surrounded by the Union Pacific Railroad and Industrial-General Commercial (IGC) development to the north, West Market Street (a public street also designated as State Route 183), and Commercial and Residential / Mixed Use (MX) to the south, North Main Street (a public street also designated State Route 183) and Bataan Memorial Park (a public park) to the east, and Commercial/Commercial Retail to the west.

Pursuant to California Government Code Section 65402(a), the Community Development Department’s Current Planning Division has reviewed the proposed vacation of rights-of-way and dedication of rights-of-way at the ITC and determined that the proposed street vacation and dedication of rights-of-way conforms with the City’s 2002 General Plan Land Use and Circulation Map as the Circulation Master Plan (Figure C-5) as this does not show the affected streets to be vacated and dedicated. Additionally, access to the ITC was previously via West Market Street and Station Place. Following completion of the Salinas Rail Kick-Start Package 1 improvements, the ITC is now accessed via West Market Street and the Lincoln Avenue extension, currently identified as a 93-foot-wide Public Utility Easement (PUE). Said PUE was accepted by the City Council through Resolution No. 21579 on March 19, 2019 (Attachment 3), pursuant to the MOU between the City of Salinas and TAMC.

Subsequently, the City relocated all existing public sanitary sewer and storm drain infrastructure within the new easement area which became the extension of Lincoln Avenue. On June 23, 2020, the relocated sanitary and storm drain improvements were accepted for maintenance and responsibility via Resolution No. 21879 (Attachment 4). All other public utility services were also relocated within the Lincoln Avenue extension and dedicated new Station Place rights-of-way. A public utility easement (PUE No. 2) has been created together with new water line easements no. 1 and no. 2 on the proposed Parcel 1 and new water line easements no. 3, no. 4, and no. 5 on Parcel

3. No action has been taken to vacate the previous street alignment of Station Place, Railroad Avenue and related access easement, roadway and pedestrian access easement, access and utilities easement, and water line easement, nor to accept the extension of Lincoln Avenue and the new Station Place rights-of-way into the City’s roadway system. Staff is requesting that City Council approve the right-of-way vacations and dedications as shown on the Parcel Map.

Staff has also examined the acceptance of the interest in the vacated land by the City of Salinas and has determined that the property meets the definition of Exempt Surplus Land in accordance with California Government Code Sections 54221(f)(1)(E), 54221(f)(1)(I), and 54221(f)(1)(J) as the Salinas Rail Kick-Start Package 1 improvements required significant financial resources to construct and TAMC secured its funding through a Traffic Congestion Relief Fund (TCR) from the California Department of Transportation (Caltrans) and other funding for the Monterey County Rail Extension Project. Hence, the California Transportation Commission (CTC) must approve any transfer of the subject property, and the City agreed to abide by the terms of the grant Master Agreement, provided as Exhibit D to the Transfer Agreement in Attachment 2. Under strict reading Page | 4
of the terms of the grant Master Agreement any development on the Property other than what was contemplated under the grant (i.e. commuter parking) would be prohibited unless the grant funds used to acquire and improve the Property are repaid to Caltrans.

Renaming Railroad Avenue to Station Place
On March 10, 2025, the street naming committee considered the renaming of a new right-of-way alignment (formerly Railroad Avenue) to Station Place. In accordance Chapter 30, Article VIII of the Municipal Code, and to avoid duplication or similar sound names and eliminating situations where there are several names for the same street, the abandonment of the former alignment of Station Place and new alignment over portions of the abandoned right-of-way, formerly Railroad Avenue, do not create a conflict with the proposed new right-of-way dedication of Station Place.

Although an official street naming committee does not exist, an ad hoc committee meeting comprised of the Director of Community Development, the Director of Public Works, the Police Chief, the Fire Chief and City Engineer, was convened to review the request to rename the proposed dedicated right-of-way. The ad hoc committee, in consultation with the Postmaster and the Monterey County Emergency Dispatch, unanimously approved the naming of Station Place over the new dedicated right-of-way.

In summary, the proposed lot merger and subdivision Parcel Map would formalize the effect of previous actions taken by the City for the completion of the Salinas Rail Kick-Start Package 1 improvements for the Monterey County Rail Extension Project at the Intermodal Transportation Center (ITC). The vacation of rights-of-way, including dedication of Lincoln Avenue (extension) and new dedication of right-of-way for Station Place, will enable the creation of Parcel 1, Parcel 2, and Parcel 3 through the lot merger and re-subdivision parcel map.

The Salinas Rail Kick-Start Package 1 improvements at the ITC, including related property, were transferred to the City in August 2022 via a Transfer Agreement between the City of Salinas and TAMC, and the City has undertaken the maintenance responsibility of said completed improvements over the past +/-3 years. However, said improvements have not been accepted for maintenance and responsibility by the City Council.

Public Notices
Notices of the proposed vacation and dedication of right of way were posted in accordance with California Government Codes 8320 and 8323 at the site and in the Monterey County Weekly.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed actions are not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activities in question may have a significant effect on the environment, the activities are not subject to CEQA. Because the proposed actions and this matter have no potential to cause any effect on the environment, or Page | 5
because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
“No”.

STRATEGIC PLAN INITIATIVE:

Completion of the Salinas Rail Kick Start Package 1 improvements has furthered City Council’s 2022-2025 Strategic Goal of Economic Development promoting Salinas as a desired destination for business and the proposed actions formalize the effect of previous actions taken by the City.

DEPARTMENTAL COORDINATION:

Public Works, together with Community Development, Administration, and Legal Department staff coordinated on this item, as well as included communication with TAMC.

FISCAL AND SUSTAINABILITY IMPACT:

The proposed actions have no direct impact on the General Fund. The fiscal and sustainability impacts were covered with the acquisition of the ITC property in August 2022. Furthermore, the landscaping completed as part of the Salinas Rail Kick-Start Package 1 improvements have been included as part of the Public Works Department’s ongoing maintenance operations over the past four years.

Landscape maintenance of the ITC was originally added to the Downtown Parking District Lot Maintenance agreement in 2022 via Agreement Amendment 1. In 2023, all landscape maintenance efforts of the Downtown Parking District have shifted to the Citywide Landscaping Services for Greenbelts, Medians and Roundabouts agreement via Contract Change Order 1.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)

N/A N/A N/A N/A N/A N/A N/A
Resolution
Exhibit A – Salinas Rail Kick-Start Package 1 (ITC Improvements) Exhibit B – ITC Lot Merger and Re-subdivision Parcel Map Attachment 1 – Resolution 21119
Attachment 2 – Resolution 22451
Attachment 3 – Resolution 21579
Page | 6
Attachment 4 – Resolution 21879
Page | 1
RESOLUTION NO. (N.C.S.)

A RESOLUTION APPROVING VACATION OF RIGHT-OF-WAY AND DEDICATION

OF RIGHT-OF-WAY AT THE INTERMODAL TRANSPORTATION CENTER (ITC) AND ACCEPTING THE COMPLETED SALINAS RAIL KICK-START PACKAGE 1

IMPROVEMENTS FOR MAINTENANCE AND RESPONSIBILITY
WHEREAS, on October 2, 2007, the City Council approved Resolution No. 19336, supporting the Rail Service Extension Project from the Bay Area to Monterey County; and WHEREAS, on February 7, 2017, the City Council approved Resolution No. 21119, and entered into a Memorandum of Understanding (MOU) with Transportation Agency of Monterey County (TAMC) outlining the understanding of partner agencies regarding the redevelopment of the area surrounding the Salinas Train Station at the Intermodal Transportation Center (ITC) into a transit facility to accommodate new commuter passenger rail services outside the region in support of the Monterey County Rail Extension Project (the ”Project”); and WHEREAS, the MOU outlined several capital improvement activities and responsibilities between the two agencies and identified TAMC as the leading agency for the development of the Project, including funding, planning, applicable state and federal environmental review, design, right-of-way acquisition, and construction of the Project; and WHEREAS, The Salinas Rail Kick-Start Package 1 improvements are the first phase of the Monterey County Rail Extension Project and included demolition of the former Station Place street improvements and adjacent buildings and parking lots; construction of two parking lots to accommodate new commuter passenger rail services (totaling 287 parking stalls); construction of the extension of Lincoln Avenue across West Market Street (State Route 183) providing signalized access from West Market Street to the ITC; construction of a bus turnaround facility with 5 bus bays, passenger drop-off and loading zones; and installation of drought resistant landscaping, stormwater retention facilities, bicycle lanes, and bicycle parking; and WHEREAS, the Salinas Rail Kick-Start Package 1 improvements required the abandonment of the former Station Place improvements, prompting the relocation of existing public utilities at the ITC site, and construction of the Lincoln Avenue extension; and WHEREAS, on March 19, 2019, City Council approved Resolution No. 21579 accepting a Public Utility Easement (PUE) for the relocation of the existing public utilities at the Intermodal Transportation Center; and
WHEREAS, on April 30, 2019, City Council approved Resolution No. 21598 awarding a construction contract for the Salinas ITC Sewer and Storm Pipeline Relocation Project, which included the abandonment of existing sanitary sewer and storm drain pipelines, installation of new sanitary sewer and storm drain pipelines, and installation of manholes and catch basins; and WHEREAS, on June 23, 2020, City Council approved Resolution No. 21879 accepting the relocated ITC Sewer and Storm Drain Pipeline Improvements for maintenance and Page | 2
responsibility; and
WHEREAS, the Salinas Rail Kick-Start Package 1 improvements were completed in March 2021 and received construction completion approval by the TAMC Board on December 21, 2021; and
WHEREAS, On August 9, 2022, City Council approved Resolution No. 22451 authorizing a Transfer Agreement accepting the ITC Property and Package 1 improvements on behalf of the City by way of nine (9) quitclaim deeds; and, WHEREAS, the City agreed to take ownership of the ITC property consistent with the terms of the MOU, and subject to the requirements of Caltrans Master Agreement No. 64A0078 A02, which governs the state funding sources used to acquire property and complete the Salinas Rail Kick-Start Package 1 improvements; and
WHEREAS, the Salinas Rail Kick-Start Package 1 improvements have not been accepted for maintenance and responsibility by the City; and
WHEREAS, the completed Salinas Rail Kick-Start Package 1 improvements included the abandonment of the former Station Place right-of-way, portions of Railroad Avenue and related access easement, roadway and pedestrian access easement, access and utilities easement, and water line easement, and a 25-foot-wide alley, as shown on sheet 2 of the Parcel Map, including the creation of new public utility easements throughout the ITC site; and WHEREAS, California Streets and Highways Code Sections 8300 – 8363 permit a local government to vacate existing rights-of-way and/or easements, subject to the requirements of those Sections; and
WHEREAS, the City of Salinas has dedicated within its boundaries a right-of-way for a public street, known as Station Place, and Railroad Avenue; and WHEREAS, California Streets and Highways Code Section 8340 requires that an easement be reserved to maintain access to preexisting public utilities located within a right-ofway to be vacated; and WHEREAS, the reservation of those easements must be included in the Resolution vacating the right-of-way; and
WHEREAS, the City of Salinas is the owner of all real property adjacent to Station Place, and Railroad Avenue, currently serving the First Mayor’s House, Railroad Museum, Amtrak, Greyhound, and the Salinas California Welcome Center, and a 287-stall public parking area; and WHEREAS, the City desires to vacate all abandoned former street and public rights-ofway involved in the development of the Salinas Rail Kick-Start Package 1 improvements; and WHEREAS, the City desires to dedicate an approximately 93-foot-wide right-of-way for Page | 3
the extension of Lincoln Avenue into the City’s street system; and WHEREAS, the Parcel Map formalizesthe renaming of the former Railroad Avenue rightof-way to Station Place in accordance with Chapter 30, Article VIII of the Municipal Code; and WHEREAS, the City desires to subdivide the ITC property combining the effected multiple lots of record and re-subdividing the area into Parcels 1, 2, and 3 to better represent the developed site; and
WHEREAS, the Parcel Map also denotes the dedication of water line easements 1 through 5; and
WHEREAS, Station Place and Railroad Avenue are not identified in the General Plan and do not provide network benefits to the City’s street network; and WHEREAS, an ad hoc Street Naming Committee met on March 10, 2025 and unanimously approved and recommends renaming Railroad Avenue to Station Place; and WHEREAS The City of Salinas has determined that the proposed actions are not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activities in question may have a significant effect on the environment, the activities are not subject to CEQA. Because the proposed actions and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council finds that the rights-of-way for public streets and public easements listed and identified on sheets 1 and 2 of the Parcel Map are unnecessary for present or prospective use and hereby vacates the right-of-way identified; and
BE IT FURTHER RESOLVED that the City of Salinas, as the sole adjacent property owner, accepts ownership of the land vacated through this action, and authorizes the Mayor to sign the lot merger and re-subdivision Parcel Map; and
BE IT FURTHER RESOLVED that the City Council finds that the land to be vacated is Exempt Surplus Land as it consists of a former street, right-of-way, or easement, being conveyed to an owner of the adjacent property, as defined in Government Code Section 54221(f)(1)(E), and Government Code Sections 54221(f)(1)(I) and 54221(f)(J) for surplus land that is subject to a valid legal restriction that is not imposed by the local agency and that makes housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition of the site due to Traffic Page | 4
Congestion Relief Fund (TCR) funding for the Salinas Rail Kick-Start Package 1 improvements ; and
BE IT FURTHER RESOLVED that the City Council directs City Staff to take the necessary actions to consolidate the City-owned properties adjoining the vacated right-of-way to create three (3) separate lots of record for the site; and BE IT FURTHER RESOLVED that the City Council vacates the former alignment of Station Place right-of-way, Railroad Avenue and related access easement, roadway and pedestrian access easement, access and utilities easement, and water line easement, and a 25-foot-wide alley, as shown on sheet 2 of Exhibit B; and
BE IT FURTHER RESOLVED that the City Council renames Railroad Avenue to Station Place and directs staff to remove “Railroad Avenue” from the City’s street network; and BE IT FURTHER RESOLVED that the City Council dedicates right-of-way for Station Place and the Lincoln Avenue extension, as shown on sheet 3 of Exhibit B; and BE IT FURTHER RESOLVED that the City Council dedicates water line easements 1 through 5, as shown on sheet 4 of Exhibit B; and
BE IT FURTHER RESOLVED that the City Council accepts the Monterey County Rail Extension Project Salinas Rail Kick-Start Package 1 completed improvements for maintenance and responsibility; and
BE IT FURTHER RESOLVED that the City Clerk shall cause a certified copy of this resolution, attested by her under seal, to be recorded without acknowledgment, or further proof in the office of the County Recorder.

PASSED AND APPROVED this 1
st day of July 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
Page | 5
ATTEST:
_________________________
Patricia M. Barajas, City Clerk

PROJECT LOCATION SALINAS ITC SANITARY SEWER AND STORM DRAIN PIPELINE RELOCATION CIP NO. 9006 & 9007

EXHIBIT A - BEFORE IMAGE

RAILROAD AVENUE

EXHIBIT A - AFTER IMAGE

EXHIBIT A

RESOLUTION NO. 21119 ( N.C. S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL APPROVING A MEMORANDUM OF

UNDERSTANDING AMONG THE CITY OF SALINAS, THE TRANSPORTATION AGENCY

FOR MONTEREY COUNTY ( TAMC), AND MONTEREY- SALINAS TRANSIT DISTRICT

MST), REGARDING THE SALINAS INTERMODAL TRANSPORTATION CENTER (ITC) WHEREAS, on October 2, 2007, the Salinas City Council adopted Resolution Number 19336, supporting the Rail Service Extension Project to Monterey County; and WHEREAS, on July 7, 2015, the Salinas City Council received an update on the said project including the introduction ofthe Kick Start phase and the Council re -affirmed its support for the project; and
WHEREAS, the Kick Start project is at 75% of its design phase with construction anticipated to begin in 2018; and
WHEREAS, the partnering agencies of the City of Salinas, TAMC and MST have worked in collaboration to develop a Memorandum of Understanding ( MOU) regarding the Salinas ITC, which outlines the understanding of partner agencies regarding the project; the roles and responsibilities of partners; and the disposition of property after the Kick Start Project is completed.

NOW THEREFORE, BE IT RESOLVED THAT COUNCIL OF THE CITY OF SALINAS HEREBY approves said MOU in support of completing the Kick Start phase ofthe Rail Service Extension Project to Monterey County.

PASSED AND APPROVED this 7th day of February 2017, by the following vote:

AYES: Councilmembers: Barrera, Craig, Davis, De La Rosa, McShane, Villegas and Mayor Gunter NOES: None
ABSENT: None
ABSTAIN: None
PROVED:

Mayor
ATTEST:

MEMORANDUM OF UNDERSTANDING
AMONG

THE TRANSPORTATION AGENCY FOR MONTEREY COUNTY,

THE CITY OF SALINAS,
AND

MONTEREY- SALINAS TRANSIT DISTRICT,

REGARDING THE SALINAS INTERMODAL TRANSPORTATION CENTER
Effective Date: February 7, 2017
This Memorandum of Understanding ( MOU) is among the Transportation Agency for Monterey County ( TAMC), the City of Salinas ( City), and Monterey -Salinas Transit District ( MST), hereafter referred to as " Parties", regarding the Salinas Intermodal Transportation Center ( ITC) Project (" Project').

WHEREAS, the Parties have a cooperative working relationship as members of the Steering Committee for planning, development, and implementation ofimprovements to and expansion of the Salinas ITC; and
WHEREAS, through previous transportation planning studies, TAMC and the State of California determined that they needed to invest in a system ofpremium transit services that could better compete with traveling by automobile and attract new riders from the automotive modes of travel in order to provide additional transportation capacity in the Highway 101 Corridor, thereby reducing congestion, improving air quality, and saving energy in the Monterey Bay Area and San Francisco Bay Area; and
WHEREAS, the Governor and the Legislature expressed their support and endorsement ofthis Project by providing funding for the Rail Extension to Salinas and Monterey County from the Traffic Congestion Relief Act of 2000, the Proposition 116 Rail Bond and the Public Transportation Account; and
WHEREAS, the former Salinas Redevelopment Agency and the City of Salinas acquired the Salinas Amtrak Train Station and surrounding property in 1998, established the ITC, and have made significant improvements to access, landscaping, lighting and parking facilities since that time; and
WHEREAS, the Transportation Concept Report for U.S. Route 101, prepared by Caltrans District 5, dated October 1, 2001 ( updated December 22, 2014), identified the Rail Extension to Monterey County project as being an integral element for managing travel demand in the Highway 101 Corridor; and
WHEREAS, Caltrans included the project as an " Interregional Transportation Priority" for the Central Coast in the 2015 Interregional Transportation Strategic Plan; and P +{ Ford YroUrnmlRad S LdR' r!S' R. dIL Fi 1 L ' SIOrA Salr rrsilT' LIC) C WOU Salina, IT( Fspmrsion FiNAL_ DRdFT. docs Page I
WHEREAS, AMBAG adopted the Rail Extension to Monterey County project as an element of the regional Sustainable Communities Strategy, known as the " Moving Forward 2035 Monterey Bay" plan, on June 11, 2014; and
WHEREAS, MST adopted a resolution supporting the Rail Extension to Monterey County Project on December 13, 2004 ( reaffirmed June 8, 2015); and WHEREAS, TAMC, as the Lead Agency under the California Environmental Quality Act CEQA), certified the final Environmental Impact Report ( EIR) on August 23, 2006, and adopted an Addendum to the EIR on August 28, 2013, which EIR and Addendum to the EIR contemplate the actions described herein; and
WHEREAS, the California Transportation Commission, as a responsible agency, approved TAMC' s Final EIR on September 7, 2006; and
WHEREAS, in order to provide safe, efficient and effective transportation alternatives to the automobile, TAMC adopted a resolution endorsing the Extension of Rail Service into Monterey County ( formerly known as the " Caltrain Extension to Monterey County Project"), with stations in Salinas, Pajaro and Castroville as the Locally Preferred Alternative for the Highway 101 corridor on January 31, 2007; and
WHEREAS, the City of Salinas recognized the benefit and importance to the City of implementing new passenger rail service by adopting a resolution supporting the Rail Extension to Monterey County Project on October 2, 2007 ( reaffirmed July 7, 2015); and WHEREAS, the Capitol Corridor Joint Powers Authority (CCJPA) and TAMC jointly adopted Principles of Agreement for the extension of Capitol Corridor trains to Salinas in February 2013; and
WHEREAS, it is recognized that, with respect to some ofthe provisions set forth herein, numerous actions must be taken pursuant to federal, state and local laws and regulations before such policies can be implemented; and
NOW, THEREFORE, the Parties hereby agree as follows:

Proiect Features and Limits

1. The Parties agree to collaborate on the continued development of the Project located in downtown Salinas along the Union Pacific Railroad Coast Main Line Track at Milepost MP) 114.94, generally bordered by West Market Street ( Route 183) to the south, North Main Street to the east, the railroad tracks to the north, and Villa Street to the west. Local access roadways include Station Place, Lincoln Avenue, Palmetto Street, Happ Place, Vale Street, and New Street. ( See Exhibit A, site map)

2. The Parties agree that the Project is intended to facilitate transportation uses, potentially including, but not limited to: Amtrak intercity passenger trains, commuter rail trains,

Agenda Item: 3. 2 Web Attachment
recreational trains, MST local and regional buses, paratransit vehicles and bus rapid transit vehicles, intercity bus services, and transit supportive land uses, which may include housing.

3. The Parties agree that the full buildout of the Project, as described in the EIR and EIR Addendum, includes, but is not limited to, the following capital improvement projects:
a. Surface parking;
b. Bicycle lockers, bicycle racks and/ or a bicycle station; c. Reconstruction of a portion of the existing passenger loading platform and the addition of a second platform;
d. Platform shelters, canopies, lighting, furniture and fixtures, information displays and landscaping;
e. Modification and/ or addition of site access and circulation roadways; f. Traffic signalization, signing, and striping;
g. Construction of a transit exchange with passenger waiting and operations support facilities;
h. Construction/ relocation of track, turnouts, track removals, and railroad signaling, as may be required;
i. Construction of intercity bus loading berths;
j. Site drainage, lighting and landscaping;
k. Stormwater facilities per City of Salinas National Pollutant Discharge Elimination System ( NPDES) Permit;

1. Real property acquisition;
m. Building demolition;
n. Train layover yard, including crew base and train servicing support facilities; and o. Adaptive reuse of a freight building.

4. The Parties agree that the " Kick -Start" first phase of the Project may defer some of the items listed under Paragraph 3, based on funding constraints, until additional funding may be secured, such as rail platform canopies and bus operations support facilities. The Parties agree to the scope, character and layout of the Kick -Start first phase of the Project, as defined by the 75% Design Plans dated March 22, 2016 (Exhibit B).

5. The Parties agree to the scope, character and layout of the full buildout of the Project as defined by the 60% Design Plans dated September 21, 2016 ( Exhibit Q.

6. The Parties agree that the precise limits, locations and/ or alignments of Project features may be adjusted to accommodate design refinements, specifically:
a. Right- of-way limits;
b. Utilities and subsurface constraints, if any;
c. Americans with Disability Act requirements; and
d. Environmental impact mitigation, as may be required.

7. The Parties agree that the existing traffic signalized intersection of West Market Street ( State Route [ SR] 183) and Lincoln Avenue is intended to be modified to add a north leg extension

11. lVor6 Prouranr; RarLS:- iLI:VAS RAIL F,'XIh %'SIOpt' SalinoSlllC WUi :, tOL Salinas ll'C L: cpansimi FINAL DRAFTdoa. A

Agenda Item: 3. 2 Web Attachment
to this intersection as depicted on Exhibit B, and as approved by Caltrans. The Parties additionally agree that West Market Street ( SR 183) access to/from Station Place is intended to be converted into a limited access driveway. The Parties agree that the Project shall include pedestrian safety improvements at the intersection of West Market Street ( SR 183) and North Main Street/ Salinas Street, and that these improvements are important whether included as part of the first phase or a future phase ofthe project, or whether constructed separately.

Design Standards and Coordination

8. The Parties agree that a Project Development Team, consisting of MOU Parties and California Department of Transportation ( Caltrans) District 5, will be the vehicle for design coordination.

9. The Parties agree to collect input from Caltrans, Union Pacific, Amtrak, Capitol Corridor Joint Powers Authority, California Public Utilities Commission, Salinas Historic Resources Board, the Oldtown Salinas Association, the First Mayor's House, Greyhound, and ITC neighboring businesses, residents, property owners, and the general public and to reflect this input, consistent with the design framework described herein.

10. The Parties agree that the design of the Project shall be consistent with the most recent edition ofthe following documents, as appropriate:
a. MST' s Designingfor Transit Design Standards
b. Amtrak' s Standard Stations Program
c. Greyhound Bus Slip Layout and Bus Turning Dimensions d. City of Salinas Standard Specifications Design Standards and Standard Plans and Stormwater Development Standards
e. Caltrans Highway Design Manual
f. California Manual on Uniform Traffic Control Devices

11. The Parties agree that the selection of station fixtures, furnishings and finishes will be generally consistent with TAMC' s inventory of Commuter Rail Station Features, most recent edition.

Station Funding, Operation and Maintenance

12. The Parties agree that the Project is a cooperative venture ofthe City of Salinas, TAMC, and MST.

13. Parties agree to define the lead agencies as follows:
a. TAMC shall be the lead agency for project development, which includes the funding, planning, any further state and applicable federal environmental review, design, right-ofway acquisition, and construction of the intercity/ intercounty and local transport related elements of the Project (e.g., items identified in Paragraph 3, ( a)-( n)).

ISR.i1LPtIt: 0/01 , 7IIHa, W 1101 llt)t, . S Irnrlc// /;, pun:; iun /( 1' I1. U! tU7rfocz

Agenda Item: 3. 2 Web Attachment
b. The City of Salinas shall be the lead agency for funding and renovating, as needed, the existing Amtrak Station building, the freight building identified in Paragraph 3( o), the First Mayor' s House and the Railway Express Agency building within the Salinas ITC. c. The Parties agree that each Party shall be responsible for the maintenance and security of their property within the area of the Project, according to the land ownership as specified in Paragraph 14 below.
d. The Parties anticipate that separate instruments will govern the operations and maintenance of the Project.

14. The Parties agree to the right- of-way concepts described in the Project Study Report, Property Acquisition and Disposition Plan, dated October 2005, and Parties agree to coordinate in order to accomplish the right- of-way ownership reflected in the exhibits to this agreement: Exhibit D: " Salinas Commuter Rail Station and Layover Facility Existing Right Of Way Map" and Exhibit E: " Salinas Commuter Rail Station and Layover Facility Proposed Right OfWay Map". TAMC may consider use of the real property acquisition process in full compliance with all applicable laws. However, nothing in this MOU commits TAMC to acquire any specific parcels or to use the power of eminent domain. Specifically:
a. Lincoln Avenue: IfTAMC decides to acquire property for the Kick -Start phase of the project, TAMC shall convey to the City of Salinas approximately 1. 27 acres ofright-ofway (ROW) from private parties upon construction ofthe extension of Lincoln Avenue into the ITC. Of this ROW, approximately 0. 53 acres is intended to be used for Lincoln Avenue and 0. 59 acres for replacement parking. The Lincoln Avenue extension is needed to provide traffic signalized access to the transit exchange. ( Land Owner: City of Salinas) b. Transit Exchange: The City of Salinas intends to provide approximately 0. 97 acres of ROW for the construction of a transit exchange at the ITC. This exchange will displace the ITC's existing off-street parking supply. The City of Salinas will dedicate an easement for access to the transit exchange. ( Land Owner: City of Salinas) c. Parking: IfTAMC decides to acquire property, it shall convey to the City approximately

1. 05 acres ofprivate land to replace the off-street parking supply displaced by the transit exchange. ( Land Owner: City of Salinas)
d. Railroad Avenue: Railroad Avenue runs between Station Place and Palmetto Street in front of the Amtrak Station and freight buildings. TAMC intends to reconfigure the use of this ROW for the Kick -Start phase of the Project to serve bus operations and ITC traffic circulation movements. ( Land Owner: City of Salinas) e. Buildings and Platform: The ITC includes a passenger station building, freight building, and a Railroad Express Agency (REA) building. These buildings and an adjacent First Mayor' s House ( also known as the Harvey -Baker House) all rest on property owned by the City of Salinas. The City of Salinas shall retain the responsibility for maintaining and P. lVorkPro,oramRaiIS-ILLV" ISRAILEXIE, VS10ASalinas 'I]CAIOL11OU Salinasil(' Lspansion HNAL DRAFIdoc_ ePage 5 Agenda Item: 3. 2 Web Attachment
making improvements to these buildings. The City of Salinas intends to dedicate to TAMC an easement for the purpose of improving an operating rail platform. (Land Owner: City of Salinas)
f. Union Pacific: The Union Pacific Railroad owns the ROW adjacent to its Coast Main Line Track for a distance of 25 feet from the track centerline, in the direction of the Amtrak Station building. In both the Kick -Start phase and at full buildout of the Project, the Amtrak train boarding platform, the proposed dual use ofAmtrak platform, the dedicated use of a second passenger rail platform, as well as a portion of the layover facility, rest on these UPRR lands. ( Land Owner: Union Pacific Railroad) g. Layover Facility: TAMC intends to consider acquiring approximately 6. 1 acres of privately owned land, located immediately west of the freight building, for a new platform, a Layover Facility yard and lead track ( Land Owner: Transportation Agency for Monterey County)
h. Station Place: IfTAMC utilizes the land acquisition process and after such process has been completed, the City of Salinas intends to abandon Station Place and the alley behind 20 West Market Street, at which time these public right- of-ways will revert to the adjacent property owner, which will be the City of Salinas, to be converted into parking for the ITC, in the Kick -Start phase. ( Land Owner: City of Salinas) i. New Street: If TAMC utilizes the land acquisition process and after such process has been completed, the City of Salinas intends to abandon the portion ofNew Street within the layover facility area, at which time this public right-of-way will revert to the adjacent property owner, TAMC, to be used as parking or an access road, in the full buildout project. ( Land Owner: Transportation Agency for Monterey County)

15. The Parties agree that MST intends to provide connecting bus service for trains at the ITC.

MST, in its sole discretion, shall schedule bus service according to demand.

16. The Parties agree that the Project shall include all mitigations identified or to be identified through CEQA and any applicable NEPA environmental documents, per the adopted Mitigation Monitoring and Reporting Program and each Party shall cooperate in achieving this goal.

17. Parties agree that the City shall authorize TAMC to effect necessary utility relocations in accordance with the City's utility franchise agreement with utility owners.

18. Parties agree that off -site improvements shall be limited to Project mitigations identified for the intersection of Market Street ( SR 183) and Lincoln Avenue and its approaches, as described in the EIR and Addendum to the EIR, and as depicted on Exhibit B; and utility connections as may be required. Parties agree that TAMC will be the lead agency to apply for encroachment permits for Project work to be performed on the State- owned right- of-way.

P: [ orl, IN', IS Rill. l. r/ 1. V' 10, xzlbra, M 110, ; VOL 1ttGnr., ( l l_c; Pasinn 1 1: 1'. il. OR fi, / .

19. Parties agree that the Project will not be assessed impact fees or exactions as a condition of permit approvals for the Project. The Project will be subject to standard City of Salinas water/ fire line connections fees, building permits, and plan check fees.

20. Parties agree that Project implementation is contingent on funding availability.

General Provisions

21. This MOU shall be governed by and interpreted under the laws of the State of California.

22. This MOU may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Memorandum.

23. Any individual executing this MOU on behalf of a party represents and warrants hereby that he or she has the requisite authority to enter into this MOU on behalf of such party and bind the party to the terms and conditions of this MOU.

24. If any of the provisions contained in the MOU are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. If a part of this MOU is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this MOU is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

25. Parties agree that any work within the State right-of-way will require an encroachment permit issued from Caltrans. Detailed information such as complete drawings, biological and cultural resource findings, hydraulic calculations, environmental reports, traffic study, etc., may need to be submitted as part of the encroachment permit process.

26. This MOU is effective on February 7, 2017, and shall remain in force until December 31, 2025, unless extended or sooner terminated by mutual consent ofthe Parties. The period of performance may be extended or shortened by written agreement of the Parties. Any Party hereto may terminate this MOU at any time by giving 180 days written notice to the other Parties as specified in Paragraph 31.

27. This MOU, together with the documents referenced herein, including the Project EIR and Addendum to the EIR, constitutes the entire agreement and understanding between the Parties and their successor agencies, and supersedes any prior or contemporaneous agreement, or understandings, if any, with regard to the purposes of this MOU. Any changes or modifications shall be accomplished by a written amendment to this MOU executed by the duly authorized representatives of the Parties.

28. In the event of a dispute arising out ofthe performance of this MOU, each of the Parties shall send a written notice of dispute to the other Parties. Within fifteen working days of receipt of such notice, the notified Party shall respond and agree to a meeting for the purpose of negotiating a settlement or procedure for settlement of the dispute.

P: Y1' orl: Pm,,rani Rail SALIAAS RAIL 117PNSI(? N S'alinas, IIC 1I0C-''. VOL Salinas ITC Expansion PIVAL_ DR IET docx

29. The Parties shall defend, indemnify and hold each other and their respective officers, employees, and agents harmless from and against any and all liability, loss, expense, including reasonable attorney' s fees, or claims for injury or damages arising out of the performance of this MOU, but only in proportion to and to the extent such liability, loss, expense, attorney' s fees, or claims for injury or damages are caused by or result from the negligent acts or omissions or willful misconduct of their respective officers, agents, or employees.

30. Each Party to this Memorandum shall maintain books, accounts, records and data related to this Memorandum in accordance with federal and/ or state requirements and shall maintain those books, accounts, records and data for three ( 3) years after termination of this Memorandum. For the duration ofthis Memorandum, and for a period of three ( 3) years thereafter, each Party' s representatives and representatives ofthe California Department of Transportation, the Auditor General of the State of California shall have the right to examine these books, accounts, records, data and other information relevant to this Memorandum for the purpose of auditing and verifying statements, invoices, bills and revenues pursuant to this Memorandum.

31. Any notice to be given to the parties hereunder shall be addressed as follows (until notice of a different address is given to the parties):
a. TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Executive Director
55 B Plaza Circle
Salinas, CA 93901
b. CITY OF SALINAS
City Manager
200 Lincoln Avenue
Salinas, CA 93901
with a copy to the Public Works Director)
c. MONTEREY- SALINAS TRANSIT
General Manager/ CEO
One Ryan Ranch Road
Monterey, CA 93940- 5795
Attachments
Exhibit A: Site Map
Exhibit B: Kick -Start first phase ofthe Project, dated March 22, 2016 Exhibit C: Full buildout station design, dated September 21, 2016 Exhibit D: Salinas Commuter Rail Station and Layover Facility Existing Right Of Way Map Exhibit E: Salinas Commuter Rail Station and Layover Facility Proposed Right OfWay Map P:• Work PrograniTa& SALINAS RAIL E.17TA-SIONI SalinasVTC iiIOLILitiOU_ Salinas ITC E,cpnns ion_ FI.V4L_ DRAFT floor

Agenda Item: 3. 2 Web Attachment
IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding as set forth below:

Transportation Agency for Monterey County (TAMC)
TAMt Counsel
City of Salinas
qMay Approved as to Form:

PW /
ity Attorney
Monterey -Salinas Transit ( MST)
Board hair
as to Form:

MS
I '' e 11
Date
3//
Date
Date
Date
Date
3 9
Date
P: 116brk h-ograniSaiASALLVAS RAIL EXTEYSIONISalinaslITC AIOU1, IIOU_ Salinas ITC Expansion_ FINAL_ DRAFT. docs

Agenda Item: 3. 2 Web Attachment
Exhibit A: Site Map
PA-Vork ProgranilRail! SALI AS RAIL E.\ TENSIONISalinasdTC rWOtAiIOU_ Salinas ITC E.rpansion_ FINAL DRAFT. docs

TAMC SPOR1-
AGENCY
P
MON—

EYCOUNTY
55- B
Plaza
Circle
Salinas,
CA
93901
F2
PLAN SCALE:
1"=
60'
S.

PATEL
DAM 3/
22/
16 Exhibit
B:

Kick -
Start
first
phase
of
the
Project
TO
SAN
LUIS

OBISPO ---

CONFORM
T04XISTING
Mill
STA
6049+

00. 02 (
ML7) _ ..... I
MP
1_
14,
6Q_— --
O -
TRK
004
INO
m`.

TRK
003
yl
60' 0
30'
60'
120'

GRAPHIC
SCALE
PLANS

PRINTED
AT
11'
x17"
ARE ..

REDUCED
PLANS;
USE

GRAPHIC
SCALE

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION
PROJECT.

SALINAS

COMMUTER
RAIL
STATION `°""°°`
W.
6503.
2-
02 LAYOVER

FACILITY
to

OVERALL
SITE
PLAN

LAYOVER
YARD
2C101
SHEET 1
OF
3 xQ
xxx
I _.//
L --
eiAN — --- ----- IV
TD
si
LUI$
OBISPO
C
a
xK
DOW
Oxx
O1 ° 1
UNION

PACIFIC

RAILROAD,
COAST

SUBDIVISION - V

OON - - -
tt1
ILLIV1
ZI

AMERICAN Z
JI
SUPPLY
I
J
AREHO
3 i _
E
RO
I .

I
t
I
na
i
a
E
7 I
Ir
I
iiv
II
II
e
SCALE:
1'-
60'
60' 0
30•
60•
120'
u

GRAPHIC
SCALE
a
PLANS

PRINTED
AT
11-
xIr
ARE

REDUCED
PLANS;
USE

GRAPHIC
SCALE
Am
sue " ° E

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT R
TAMC
S.

PATEL
1-=
60• P
1eAVQ
J. G

SALINAS

COMMUTER
RAIL
STATION `
8012-
ft 02
MaEYCOUNW '"'"'"
a""
CA
90 J.

GREEN CRA"
o
N0
S—
TA—
AGENCY 9zs9,
a2
dl:

LAYOVER FACILITY
55-
B
Plaza Circle
S.

PATEL OVERALL
SITE
PLAN

PARKING
AND

PLATFORM
2C102 b
Salinas,
CA
93901 DAM. s
rr
N. 3/
22/
16 SHEET 2
OF 3
x
xxx
TO 4
21 ,
E)
TRK
oodE)
TRK
003
WW
TAMC
s
aoo
TFOR
W.
1-
DeA
CA

90.59fi
MONTEREv
couNttY
92W
2e925914500
55- B
Plaza
Circle
Salinas,
CA
93901
FRorEo
G1E S.

PATEL
60, 0
30'
60'
120'

GRAPHIC
SCALE
PLANS

PRINTED
AT
II -
XI
7-
ARE

REDUCED
PLANS;
USE

GRAPHIC
SCALE

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT
I'=
6o'

SALINAS

COMMUTER
RAIL
STATION `
ap"`
r011
6803.
2-
02 LAYOVER

FACILITY
DUNara

OVERALL
SITE
PLAN

PARKING
AND

PLATFORM
IC101
SHEET 3
OF 3xa
xx,
Exhibit
C:

Full
buildout
station
design,
dated
September
21,
2016

TAMC TRANSPORTATION
AGENCY

FORMONTEREY
COUNtt
55- B
Plaza
Circle
Salinas,
CA
93901
1111101 ' 0P*"
Avenue
Suits 4ftlpeek.

CAN4
92W9
25 PLAN SCALE:
1e60'
S.

PATEL
11-
WC
M.

SIEGEL HEG2Q S.

PATEL
wh: 9/
21/
16 TO
SAN
LUIS
OBISPO
E),
TRK
004
nl
E)
TRK
003
II
E)
TRK
001 N
WIWN
600
30 60
120'

GRAPHIC
SCALE
PLANS

PRINTED
AT
11'
X17'
ARE

REDUCED
PLANS;
USE

GRAPHIC
SCALE

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT

0. SALINAS

COMMUTER
RAIL

STATION
6603.
2-
01 LAYOVER

FACILITY
9MIMp
Ia

OVERALL
SITE
PLAN

LAYOVER
YARD
2C101
SHEET 1
OF 3
X ,
XXX
H
I
TAMC
OOPnrgle
Aven e
5I.

SPORTATION
AGENCY

FORMONTEREY
COUNTY
ftlC—
k,
CAWN
92S9J0. 2
55- B
Plaza
Circle
Salinas,
CA
93901
PLAN SCALE:
1 `-
60'
TO
Ski '
PO
60' 0
30'
60'
120'

GRAPHIC
SCALE
PLANS

PRINTED
AT
11'
X1r
ARE

REDUCED
PLANS;
USE

GRAPHIC
SCALE
S. P
ATEL

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT
D.

SALINAS
CO
LITER
RAIL
STATION `
owwM61 w
M.

SIEGEL
68012-
02 m=
k &

LAYOVER

FACILITY
KU
S.

PATEL

OVERALL
SITE
PLAN

PARKING
AND

PLATFORM
2C102
DAM
WE9/
gEET
21/
16 SHEET 2
OF 3
or
XX
T0
NICE)
TRK
OOd
E)
TRK.
003

1. UN U irm— fa
U 7l
PLAN SCALE:
1'=
60'
600
30 60
120'

GRAPHIC
SCALE
PLANS

PRINTED
AT
11"
X17"
ARE

REDUCED
PLANS:

USE

GRAPHIC
SCALE
Rv
uam
S°°
AP°

TAMC TPANS
T`nNAGENGY

FORMONTEREY
COUNTY
55- B
Plaza
Circle
Salinas,
CA93901
e
wm1~,
a,
cn9asss
92W4-
250D
Z
S.

PATEL

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT
60'
M
SIEGEL
SAUNAS

COMMUTER
RAIL

STATION

LAYOVER

FACILITY

OVERALL
SITE
PLAN

PARKING
AND

PLATFORM
SHEET 3
OF 3
6603,
22-
012p
E
ocava S.

PATEL
GRA'
MNG
NP.
1 C -
101
y
9/
21/
16 REV, x
xxx t
AppWAD
E
R
LEGEND

DESCRIPTION
TOTAL

AREA ACRES)

PRIVATE (
TO

BEACQUIRED)

8. 642

PRIVATE (
NOT
PART
OF

STATION

EXPANSION)
CITY
OF

SALINAS
PUBLIC
ROW

2. 17t
CITY
OF

SALINAS

6. 27f
1TRFr1NCAM5POON Y
MNREYCOUNtt
55- B CircleN
Plaza
Salinas,
CA
93901
Si.
400
p4PC0A
9596
9-
979500

AFPDMD E
60'
0 30'
60'
120'
ommmmmij

GRAPHIC
SCALE
PLAN
PUNS

PRINTED
AT
II*
X17`
ARE

REDUCED
PUNS;
USE

GRAPHIC
SCALE
SCALE:
1"=
60'
S.

PATEL

MONTEREY COUNTY

COMMUTER
RAIL

EXTENSION
PROJECT.

SAUNAS C
UTER
RAIL

STATION
J.

GREEN.
2'
02 c.

G.

D: &

LAYOVER

FACILITY
DW* M
pu
S.

PATEL
EX001
Wu

EXISTING
RIGHTOFWAY >
NE,"
9/
16/
16 SHEET 1
OF 3x
xxx
f
L ----
i':

L---
f6—
smuuifDE.

Spo -
AL
ILI
00I
in
xi
UNION
PAcil

RAILROAD,
COAST ii
1MOUNAR1
TO
PROJECT 1
60'
0 30'
60'
120' J

GRAPHIC

SCALE P
LA
PLANS

PRINTED
AT1Iif
17"
ARE
PLAN
SCALE: 1"=
60'

REDUCED
PLANS;
USE

GRAPHIC
SCALE
ah
TAMC
mArvsvor+rnnory
AeErvcr
FOn
morvlEaEv courvtt
55-
B
Plaza Circle
Salinas,
CA
93901
sW.
4W
Sulte
40D
WI,,
tk,
92I9
2e
CA94596
S.

PA
S.

PATEL MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT
1"=
60' z
GREEN

SALINAS C
UTER
RAIL

STATION

LAYOVER

FACILITY

EXISTING
RIGHTOFWAY
SHEET
2 OF 3
W.
0 jclaft S. PATEL
1 EX002
NM.
9/ 16/
16m
xa
xxx
srxwao
LTO—
SAN—
JOSE , \
TO
SAN
LUIS
085P0 ,

FROMMOL
pDPa
ECT
Lou
UNION

PACIFIC

RAILROAD,
COAST

SUBDIVISIONLE
nmllJflJlim
vmn
ivr
mnm
airi
amn sminnn
m...
n.:..,.......... -
rE
I
EN"« S\
o,re
erss
PLA SCALE:
1'=
60'
60' 0
30'
60 120'

GRAPHIC
SCALE
XI7-
ARE

REDUCEED
ANS;PLLNS DAT I
USE

GRAPHIC C
SCALE 9
9ry
w¢ W
eue
av
o[
sav9oN TA
1/
Y
10 arnnorv- E—
roa
m0
TEaEv couHn
55-
B
Plaza Circle
Salinas,
CA
93901
oc
eAw
b00°
warm Creek.

CA9 %
925972&
W
OESN M
S.

PATEL

MONTEREY COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT
1•=
60Bd
oFwft J.

GREEN SALINAS C
UTER
RAIL

STATION

LAYOVER

FACILITY

EXISTING
RIGHT—
OF—
WAY
SHEET 3
OF 3a
rxao:
o:

S.

PATEL
ow*"
I@
EX003
Vm
ovE,
9/
16/
16 za
xxx Y

gib
SANdo ------- I
To
SIN
Lul

BISPC --

I -- - ---
J --"' -
in
60'
0 30'
60'
120'

GRAPHIC
SCALE
PLAN
PLANS

PRINTED
AT1
1'x1r
ARE
SCALE:
1"=
60'

REDUCED
PLANS;
USE

GRAPHIC
SCALE
Env
DAIS
er
sue
AEw
ExwpEnn
OESOWM
IE:

TAMC

MONTEREY
COUNTY

COMMUTER
RAIL

EXTENSION

PROJECT
Ioo
fiinp e
roe" e
S.

PATEL
1"=
60'
nuRsroRrnnaR
ACERcr
d
C—
k,
CA90.
59E
J.

GREEN SAUNAS C
UTER
RAIL

STATION
6W^
02 FORM—
EY
COU—
9259]
4250D ,®, &

LAYOVER

FACILITY
DW*"
no:
55-
B
Plaza Circle
S.

PATEL
ITC

PROPOSED
RIGHTOFWAY
ULT002
Salinas,
CA
93901 Dm.
scn
pa
MwEo+
En
9/
16/
16 SHEET 2
OF 3x
xxx

Page | 1
RESOLUTION NO. 21579 (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL APPROVING A PUBLIC

UTILITY EASEMENT FOR THE INTERMODAL TRANSPORTATION CENTER (ITC) WHEREAS, on October 2, 2007, the Salinas City Council adopted Resolution Number 19336, supporting the Rail Service Extension Project from the Bay Area to Monterey County; and WHEREAS, on July 7, 2015, the Salinas City Council received an update on said project including the introduction of the “Kick Start” Phases 1 and 2, (Phase 1 being the development of the City’s ITC, and Phase 2 being the development of the layover station west of the ITC), and reaffirmed its support for the project; and
WHEREAS, on February 7, 2017, the City Council adopted Resolution 2119, and entered into a Memorandum of Understanding (MOU) with Transportation Agency of Monterey County (TAMC) and Monterey Salinas Transit (MST) which outlines the understanding of partner agencies regarding the project, the roles and responsibilities of each agency, and the disposition of properties after the Kick Start project is completed; and WHEREAS, in January 2019, Phase 1 of the Kick Start project design was competed and submitted to Cal Trans for review, and work began to relocate the utilities; and WHEREAS, the utilities currently located at various locations around the train station and in Station Place will be abandoned except one required for a fire hydrant, and all others will be recollocated using a joint trench in the new Right-Of-Way that is the extension of Lincoln Avenue; and
WHEREAS, the relocation of the utilities to the new ROW requires that TAMC grant to the City a Public Utility Easement (PUE), as drafted in the attachment to this Resolution, on the portion of those properties for Cal Water to locate a fire hydrant, and ROW within the new Lincoln Avenue Extension.

NOW THEREFORE BE IT RESOLVED that the Salinas City Council hereby finds and determines that the above recitals and accompanying staff report are true and correct and have served as the basis, in part, for the actions of the City Council set forth below.

BE IT FURTHER RESOLVED that the Salinas City Council agrees that accepting this PUE is consistent with the roles identified in the MOU, is in the best interest of the City and the Kick Start project, and approves the attached Grant Deed and PUE as presented.

PASSED AND APPROVED this 19th day of March 2019, by the following vote:

AYES: Councilmembers: Barrera, Cromeenes, Davis, De La Rosa, McShane, Villegas and Mayor Gunter
DocuSign Envelope ID: 9E5B55DF-81FB-4950-930A-75617EDC94A6 Page | 2
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
________________________
Joe Gunter, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
ATTACHED: Grant Deed and PUE
DocuSign Envelope ID: 9E5B55DF-81FB-4950-930A-75617EDC94A6 RESOLUTION NO. 21879 (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL ACCEPTING THE SALINAS ITC SEWER AND STORM PIPELINE RELOCATION PROJECT, CIP 9006, FOR

MAINTENENACE AND RESPONSIBILITY
WHEREAS, On April 16, 2019, the City Council awarded the Salinas ITC Sewer and Storm Pipeline Relocation Project, CIP 9006, to Monterey Peninsula Engineering; and WHEREAS, the project, in general, called for abandonment of existing sanitary sewer and storm drain pipes, installation of new sanitary sewer and storm drain pipes, and installation of manholes and catch basins; and
WHEREAS, the City of Salinas determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15301, Class 2 (c)) because the project replaced parts of existing utility systems with negligible or no expansion of capacity; and WHEREAS, the project was completed in January of 2020 and met construction methods and project plans and specification requirements.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council accept this project for maintenance and responsibility.

PASSED AND APPROVED this 23rd day of June 2020, by the following vote:

AYES: Councilmembers: Barrera, Cromeenes, Davis, De La Rosa, McShane, Villegas and Mayor Gunter
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
_________________
Joe Gunter, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
DocuSign Envelope ID: FEAFF22E-97E3-4633-99AB-39A3FDD36A6B City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#25-256, Version: 1
Sanitary Sewer Rate Increases
Approve a Resolution directing staff to distribute Proposition 218 Public Hearing Notices for proposed sanitary sewer rate increases based on the updated Sewer Rate Study and revised Sewer Rate Schedule with the public hearing to be held on September 23, 2025.

City of Salinas Page 1 of 1 Printed on 6/26/2025
powered by Legistar™
Page | 1

CITY OF SALINAS

CITY COUNCIL STAFF REPORT
DATE: JULY 1, 2025
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR

SELINA ANDREWS, FINANCE DIRECTOR
BY: ADRIANA ROBLES, CITY ENGINEER
TITLE: SANITARY SEWER RATE INCREASE
RECOMMENDED MOTION:

A motion to approve a Resolution directing staff to distribute Proposition 218 Public Hearing Notices for proposed sanitary sewer rate increases based on the updated Sewer Rate Study and revised Sewer Rate Schedule with the public hearing to be held on September 23, 2025.

EXECUTIVE SUMMARY:

On April 22, 2025, City Council approved a resolution accepting a Sewer Rate Study, approving Sewer Rate Schedule and setting the public hearing date for a sewer rate increase for June 17, 2025. Following distribution of the public hearing notices, some discrepancies were identified in the rate schedule. On June 17, 2025 staff presented a staff report identifying the discrepancies.

This staff report provides the updated Sewer Rate Study and Sewer Rate Schedule and public hearing notices to be distributed in accordance with Proposition 218. The public hearing is proposed to be scheduled for the September 23, 2025, City Council meeting.

BACKGROUND:

The City of Salinas owns and operates a municipal sanitary sewer system (“sewer system”) that services residents and businesses within its service area. The sanitary sewer system has a service area of approximately 12,430 acres, with over 280 miles of gravity sewer mains and eleven (11) lift stations1that convey sewage flows to the Regional Wastewater Treatment Plant, operated by Monterey One Water (“M1W”). M1W collects fees for the treatment of the sanitary sewage and their fees are adjusted annually. M1W fees are separate from the rates collected for the City through M1W. M1W currently collects $50.95 for their wastewater treatment and $5.45 for the City of Salinas’ sanitary sewer rate.

In 2011, a Sanitary Sewer Master Plan was developed and the following year, a rate study was prepared that increased sewer rates to $5.45 per month for residential users or equivalent dwelling unit (EDU). Sewer rates are used by the City of Salinas to provide the service required to maintain the City’s sanitary sewer system (pipes, manholes, lift stations, and equipment). Sewer rates fund the entirety of the wastewater enterprise fund. The wastewater enterprise fund pays for the sanitary

1 Lift Station. In sanitary sewer systems, lift stations pump sewage from lower elevations to higher elevations.

Page | 2
sewer system, staff, supplies, electricity and everything needed to keep the sanitary sewer system within the City of Salinas operational. The City’s sanitary sewer rate has not changed since 2012.

Over several years, the wastewater enterprise fund has had a funding shortfall. This has meant that necessary infrastructure repairs and upgrades have not been financially possible, leading to system failures and costly emergency repairs. Investment is required to meet regulatory mandates and to prevent additional untreated sewage discharges.

In February 2021, staff retained Wallace Group to update the Sanitary Sewer Master Plan (Resolution No. 22051). The Sanitary Sewer Master Plan Update (SSMP) included document review, data collection, field surveys, comprehensive lift station assessment, in-line sewer flow monitoring, wastewater flow projections, development and calibration of a hydraulic sewer model to identify collection system deficiencies for existing, and future build-out conditions and development of a Sanitary Sewer Capital Improvement Program.

On May 2, 2023, through Resolution No. 22648, City Council adopted the Salinas Sanitary Sewer Master Plan Update. The SSMP identified existing hydraulic deficiencies, operation and maintenance repairs, and lift station upgrades required to keep the existing sanitary sewer system operational. The SSMP estimates sewage flows at 10.46 million gallons per day from the existing sanitary sewer system. Required maintenance repairs and existing hydraulic deficiencies were ranked based on priority. Costs for maintenance repairs and fixing existing hydraulic deficiencies are funded by the City’s rate payer fees. The SSMP estimates an additional 2.33 million gallons per day of sewage flows from the North of Boronda Future Growth Area (FGA) will be added to the existing system at build-out conditions. This will require upsizing the existing system to meet the additional demand. Costs to upsize the sewer system are the developers’ responsibility. Several sanitary sewer mains require both repairs and upsizing to meet the anticipated future conditions.

In these cases, the cost responsibilities are shared between the rate payers and the developers at varying percentages depending on the condition of the sewer system.

On September 24, 2024, City Council approved an amendment to the sanitary sewer impact fee (Resolution No. 23100). Impact fees are paid by developers to offset the impacts from development to the existing system. A nexus study prepared by Wallace’s consultant, DTA, provided the justification for the adjustment to the impact fee to ensure that developers were covering the full cost of their fair share responsibilities to upsize sanitary sewer mains as identified in SSMP.

On April 23, 2024, an amendment to Wallace Group’s contract was approved by City Council (Resolution No. 22947) allowing for the commencement of a sewer rate study (“Study”). Wallace Group partnered with DTA to evaluate potential rate structures and provide recommendations on how to address funding gaps for sanitary sewer system repairs, upgrades and future needs.

The City’s current sanitary sewer rate of $5.45 per residential unit or equivalent dwelling unit (EDU) is intended to cover the City’s annual operation and maintenance (O&M) costs, as well as servicing existing debt obligations, but it does not. The City’s sanitary sewer enterprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $335,000 for FY 2024-25 and will not meet the required 125% debt service coverage requirement on the existing bonds. In addition, the current budget does not include capital improvements required for system replacements and upgrades. The Study estimates a total of $114.8 million is required to make the necessary high priority improvements to the sewer system over the next ten Page | 3
years. The Study incorporated the revenue requirements and calculated the new sewer rates in compliance with Proposition 218 requirements. An increase to $16.35 per EDU per month with a 2% annual escalation rate is recommended for the next five years (See Sewer Study, Attachment 1).

The financial model2, prepared by DTA, looks at the financial needs to keep the system operational (repairs, staffing and equipment) along with capital improvements outlined in the SSMP and debt obligations. Bonding is anticipated during years 2, 5, and 8 of the ten-year study period totaling $77.6 million of bond proceeds to be used along with the estimated $37.1 million of rate fees to cover the required $114.8 million for capital improvement projects.

As indicated at the March 11, 2025, City Council meeting and preceding Finance Committee meeting, the City recently received a credit rating downgrade for its outstanding sanitary sewer system revenue debt. The downgrade was a function of decreasing financial health of the sanitary sewer enterprise fund primarily because of revenue increases not keeping up with the operating costs of the sewer collection system. Without increased sewer service rates, the City will not be able to fund scheduled repairs, identified capital improvement projects or meet the outstanding bond debt service covenants after FY 2024-25. If this happens, this may result in the bonds being called which may require the City having to pay off the remaining balance of $12,180,000.

Past Actions
On March 11, 2025, the City Council, adhering to the recommendation of the Finance Committee, accepted the findings of the Study and recommended an increase to the sewer rate to $16.35 with a 2% annual escalation rate.

On April 8, 2025, staff presented the draft Study and Rate Schedule to the Finance Committee.

The Finance Committee unanimously recommended approval of the Study and Rate Schedule by the City Council.

On April 22, 2025 the City Council approved a resolution accepting the Sewer Rate Study and approving the Rate Schedule and directed staff to distribute Public Notices for the public hearing set for June 17, 2025. Following distribution of the public hearing notices, inaccuracies were identified in some rates and rate categories.

On June 17, 2025 staff identified the inaccuracies in the Rate Schedule to the City Council and set a new date to present the updated Sewer Rate Study and Rate Schedule. At that same meeting, the City Council approved a resolution establishing the procedures the City will follow for considering and responding to “objections” to the proposed rates in accordance with new law known as AB 2257 (Government Code sections 53759.1 and 53759.2). These procedures are in addition to the requirements under Proposition 218 for the City to also consider “protests” to the proposed rates.

Rate Study & Rate Schedule Changes
The primary changesrequired to be made to Rate Study and the Rate Schedule included identifying certain rate users as “special users” and changing the monthly rate for those users to be flow based consistent with the Monterey One Water (“M1W”) 2021 Wastewater Treatment Rate Update to

2 A financial model is a tool that is used to forecast future financial performance.

Page | 4
2017 Comprehensive Rate & Fee Study (see Attachment 4). M1W identifies “special user” as any establishment, which cannot be classified in any other category, based on individual flow and strength characteristics.

It is important to recognize the distinction between “special users” and all other users of the City’s sewer services. The City’s Sewer Rate Study follows M1W’s analysis of the estimated impacts from a range of user categories for residential and non-residential users of sewer services. Since each user category is assigned a different number of EDUs per Unit, based on the corresponding different level of estimated impacts for each Unit of use (based on the estimated flow of wastewater through the City’s sewer system), and the rate is based on those estimated impacts (EDUs), that analysis represents a reasonable estimate of those impacts and the rate calculation. It is only for the limited number of unique “special users,” for which the impacts on the sewer system vary widely, that M1W calculates impacts based on a measured strength and flow of wastewater and a formula to compare it to the estimated strength and flow of all other user categories. Therefore, the City matches the analysis used by M1W, and only special users are proposed to be charged a rate based on the amount of flow measured by M1W.

Residential Categories
M1W classifies all residential categories as dwelling units and each dwelling unit is charged based on a fixed monthly rate. M1W estimates residential wastewater flow per dwelling unit to be 150 gallons per day. As indicated previously, one EDU represents the wastewater demand of a typical residential dwelling unit. Given M1W’s use of estimated flow to calculate sewer rates for residential customers, it would not be feasible for the City to establish a different method of analyzing individual residential wastewater flows, nor would it be feasible for the City to conduct its own sewage billing, both of which would be required if specific residential unit types are to have differing sewer rates.

Residential Low Income Sewer Service Assistance Program The FY 2025-2026 budget allocated $150,000 from the General Fund for a sewer assistance program. A draft outline of the proposed assistance program was presented to City Council at its April 22, 2025 meeting. Staff is working on the specifics of the proposed program and will provide them to City Council in a future meeting by public hearing date.

Proposition 218 and AB 2257
Proposition 218 requires a public hearing to be held for the proposed rate increase. Upon receiving direction from City Council at this July 1 meeting, the Anticipated Schedule, set forth below, summarizes the actions previously taken for this matter as well as the planned actions leading to an updated public hearing notice to be mailed on July 11, 2025, for a public hearing proposed to be held on September 23, 2025, City Council meeting.

As noted above, at the public hearing, the City Council will consider any written objections that are received by the City Clerk by August 25 (45 days after the public hearing notice) in accordance with AB 2257. Under this process, property owners have the right to submit a written objection identifying a substantive reason the proposed rates do not comply with Proposition 218, and for each timely written objection, City staff will prepare a substantive written response. All written Page | 5
objections and responses will be presented to City Council for consideration prior to taking action on the proposed rates.

This public hearing will also allow rate payers who oppose the rate increase to submit a written “protest” under Proposition 218. If rate payers representing less than 50% of the parcels served by the City’s sewer system submit written protests, then the City Council will be authorized to approve the proposed sewer rate increases to take effect on October 1, 2025 (See Public Hearing Notice, Attachment 3).

Anticipated Schedule
March 4 Finance Committee - Presentation of rate analysis findings March 11 City Council – Presentation of rate analysis findings April 8 Finance Committee – Recommend approval of Rate Study and Rate Schedule April 22 City Council – Request approval of the Rate Study and Rate Schedule, authorization to initiate notices, set hearing date, and protest process as required by Proposition 218
April 25 Notices to property owners mailed (45 days prior to hearing) Informational notices to residents
June 17 City Council – Public hearing and sewer rate adoption [continued to July 1] July 1 City Council – Request approval of the updated Rate Study and Rate Schedule, authorization to initiate notices, set hearing date, and protest process as required by Proposition 218
July 11 Revised Notices to property owners mailed (45 days prior to hearing) August 25 Deadline for City to receive written objections from property owners under AB 2257
September 23 City Council – Public hearing and sewer rate adoption October 1 New rates effective
Rate Assistance Program
Also as directed, staff has been working on setting up a rate assistance program and the recently approved FY 2025-26 City Budget includes $150,000 to stand up the program. As this Prop 218 process moves forward, staff will bring back the rate assistance program for consideration and approval.

CEQA CONSIDERATION:

Not a Project. City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to Sections 15378 and 15061(b)(3).

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No
Page | 6
Page | 7
STRATEGIC PLAN INITIATIVE:

Updating sewer rates is consistent with the Council values of Fiscal Responsibility, Service and Responsiveness and Council Goals and Strategies of Economic Development, Housing, Infrastructure, and Public Safety by investing in existing facilities and infrastructure and by providing adequate funding for improvement needed to allow for growth.

DEPARTMENTAL COORDINATION:

Public Works staff have consulted with other firms including DTA as sewer rate consultant, Wallace Group as facilities engineer, and NHA Advisors as municipal advisor. Public Works has worked closely with the Finance Department through review of the financial model.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct fiscal impact associated with accepting the updated Sewer Rate Study, approving the revised Sewer Rate Schedule, and directing staff to distribute Proposition 218 Public Hearing Notices for proposed sanitary sewer rate increases.

Imposing and updating sewer service rates allows the City to be fiscally responsible and sustainable while addressing immediate critical infrastructure and future growth needs.

ATTACHMENTS:

Resolution
Attachment 1 – Sewer Rate Study
Attachment 2 – Sewer Rate Schedule
Attachment 3 - Public Hearing Notice
Attachment 4 – Monterey One Water 2021 Wastewater Treatment Rate Update to 2017 Comprehensive Rate & Fee Study
Page | 1
RESOLUTION NO. (N.C.S.)

SANITARY SEWER RATE INCREASE
WHEREAS, the City of Salinas owns and operates a municipal sanitary sewer system (“sewer system”) that services residents and businesses within its service area of approximately 12,430 acres, with over 280 miles of gravity sewer mains and eleven (11) lift stations that convey sewage flows to the Regional Wastewater Treatment Plant, operated by Monterey One Water (M1W); and
WHEREAS, M1W collects fees for the treatment of sanitary sewage. M1W fees are adjusted annually and are separate from the rates collected for the City through M1W. Sewer rates are used by the City of Salinas to provide the service required to maintain the City’s sanitary sewer system (pipes, manholes, lift stations, and equipment). Sewer rates fund the entirety of the wastewater enterprise fund. The wastewater enterprise fund pays for the sanitary sewer system, staff, supplies, electricity and everything needed to keep the sanitary sewer system within the City of Salinas operational; and
WHEREAS, in 2011, a Sanitary Sewer Master Plan was developed and the following year, a rate study was prepared that increased sewer rates to $5.45 per month for residential users or equivalent dwelling unit (EDU); and
WHEREAS, the City’s sanitary sewer rate has not changed since 2012; and WHEREAS, over several years, the wastewater enterprise fund has had a funding shortfall.

This has meant that necessary infrastructure repairs and upgrades have not been financially possible, leading to system failures and costly emergency repairs. Investment is required to meet regulatory mandates and to prevent additional untreated sewage discharges; and WHEREAS, on May 2, 2023, through Resolution No. 22648, City Council adopted the Salinas Sanitary Sewer Master Plan Update (“SSMP”). The SSMP identified existing hydraulic deficiencies, operation and maintenance repairs, and lift station upgrades required to keep the existing sanitary sewer system operational and prioritized capital improvement projects of said repairs and upgrades; and
WHEREAS, on April 23, 2024, an amendment to Wallace Group’s contract was approved by City Council (Resolution No. 22947) allowing for the commencement of a sewer rate study (“Study”) to evaluate potential rate structures and provide recommendations on how to address funding gaps for sanitary sewer system repairs, upgrades and future needs; and WHEREAS, on April 22, 2025 City Council approved a resolution accepting the Sewer Rate Study and approving the Rate Schedule and directed staff to distribute Public Notices for the public hearing set for June 17, 2025; and
WHEREAS, following distribution of the public hearing notices, inaccuracies were identified in some rates and rate categories; and
Page | 2
WHEREAS, on June 17, 2025 staff identified the inaccuracies in the Rate Schedule to the City Council and set a new date to present the updated Sewer Rate Study and Rate Schedule; and WHEREAS, at the same June 17, 2025 meeting, the City Council approved a resolution establishing the procedures the City will follow for considering and responding to “objections” to the proposed rates in accordance with AB 2257 (Government Code sections 53759.1 and 53759.2) in addition to the requirements under Proposition 218; and WHEREAS, the consultant has completed updating the Sewer Rate Study (“Study”) and revising the Rate Schedule; and
WHEREAS, the Study estimates a total of $114.8 million is required to make the necessary high priority improvements to the sewer system over the next ten years; and WHEREAS, the Study incorporated the revenue requirements and calculated the new sewer rates in compliance with Proposition 218 requirements. An increase to $16.35 per EDU per month with an annual 2% annual escalation rate for the next five years is recommended; and WHEREAS, the updated Study identifies certain commercial and industrial users as “special users” following M1W’s analysis which distinguishes these users based on individual flow and strength characteristics; and
WHEREAS, given M1W’s use of estimated flow to calculate sewer rates for residential customers, it would not be feasible for the City to establish a different method of analyzing individual residential wastewater flows, now would it be feasible for the City to conduct its own sewage billing, which would be required if specific residential unit types are to have differing sewer rates; and
WHEREAS, City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to Sections 15378 and 15061(b)(3).

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council directs staff to distribute Proposition 218 Public Hearing Notices for proposed sanitary sewer rate increases based on the updated Sewer Rate Study and revised Rate Schedule with the public hearing to be held on September 23, 2025.

PASSED AND APPROVED this 1
st day of July, 2025, by the following vote:

AYES:

NOES:

ABSENT:

Page | 3
ABSTAIN:

APPROVED:
_______________________
Dennis Donohue, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Irvine | San Jose | San Francisco | Riverside
Dallas | Houston | Raleigh | Tampa
www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds

CITY OF SALINAS

SEWER RATE STUDY
June 24, 2025
www.FinanceDTA.com
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612

CITY OF SALINAS

SEWER RATE STUDY
Prepared for:

City of Salinas
200 Lincoln Avenue
Salinas, CA 93901
TABLE

OF CONTENTS

SECTION PAGE
I EXECUTIVE SUMMARY ............................................ 1 II INTRODUCTION ..................................................... 3 A Purpose .................................................................. 3 B Proposition 218 .................................................... 3 C Approach ............................................................... 5 D Current Sewer System ........................................ 5 E Sewer Master Plan Update and CIP ................. 5
F Rate Study Organization .................................... 6 III REVENUE REQUIREMENTS ................................... 7 A Operations and Maintenance ........................... 7 B Capital Expenditures ........................................... 7 C Debt Service .......................................................... 8 D Reserve Requirements ........................................ 9 IV SEWER RATE ANALYSIS ....................................... 10 A Current Rate Structure ..................................... 10 B Proposed Rate Structure .................................. 10 C Equivalent Dwelling Units ............................... 10 D Model Considerations ....................................... 10 V IMPLEMENTATION OF RATES ........................... 12 VI CONCLUSION ........................................................ 13

APPENDICES

APPENDIX A SEWER RATE MODEL

APPENDIX B RATE MODEL ASSUMPTIONS

APPENDIX C HIGH PRIORITY PROJECT COST TABLES

APPENDIX D EDU SUMMARY
APPENDIX E 1O-YEAR RATE SUMMARY BY LAND USE
1 SECTION I

EXECUTIVE SUMMARY

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com

I EXECUTIVE SUMMARY
The City of Salinas (the “City”) Wastewater Division of the Public Works Department, hereinafter referred to as the “Sewer Department,” owns and operates a municipal sanitary sewer system made up of over 280 miles of gravity sewer mains, 11 lift stations and hundreds of manholes which collects wastewater generated within the City as well as certain areas outside of the City and transports it to an independent agency, Monterey One Water (“M1W”) for treatment and disposal. The City and M1W impose separate wastewater rates for their services and this study looks only at the City’s own wastewater collection charges. M1W, the regional treatment system, is a separate governmental entity that sets its own rates which apply to the City and other regional participants including the Cities of Pacific Grove, Del Rey Oaks, Seaside, Sand City, Fort Ord, Marina, Castroville, Monterey, Moss Landing, and some unincorporated areas in northern Monterey County. The regional treatment rates levied by M1W are not a part of this study.

In 2011, a sewer rate study was prepared that increased sewer rates to $5.45 per month for residential users or equivalent dwelling unit (“EDU”). The sewer rate has not changed since 2012. Over a number of years, the sewer enterprise fund, which funds ongoing maintenance of the sewer system has had a funding shortfall. This has meant that necessary infrastructure repairs and upgrades have not been financially possible, leading to system failures and costly emergency repairs. Investment is required to meet State mandates and to prevent additional untreated sewage discharges as occurred in April 2022 which led to a Notice of Violation and fine from the Regional Board.

In 2024, DTA was engaged by the City to evaluate potential rate structures and provide recommendations on how best to address funding gaps for sewer infrastructure upgrades and long-term sewer system needs. DTA prepared various sewer rate scenarios based on the costs provided by City staff for operation and maintenance costs and debt service, plus required capital improvements for improvements needed over the 10-year study period.

The City’s current sewer rate of $5.45 per residential user or EDU is intended to cover the City’s annual operation and maintenance (“O&M”) costs, as well as servicing existing debt obligations, but currently experiences a shortfall. The City’s sewer enterprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $400,000 for FY 2024-25 and will not meet the required 125% debt service coverage requirement on the existing bonds. In addition, the current budget does not include capital improvements required for system replacements and upgrades.

The City has identified key infrastructure costs of approximately $114.8 million (escalated value) of capital improvement projects over a ten-year period to upgrade the system to maintain current levels of service. The study herein incorporates the revenue requirements and calculates new sewer rates in compliance with Proposition 218 requirements. 2 SECTION I

EXECUTIVE SUMMARY

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
As described in this study, the rates are proposed to be increased and phased in over a five (5) year period as shown in Table 1 below. In order to fully fund the costs as described in this study, the sewer rates will need to continue to increase beyond the five (5) year period.

Table 1: Proposed Rate per EDU

Fiscal Year 25/26 26/27 27/28 28/29 29/30
Rate per
EDU per
month
$16.35 $16.68 $17.01 $17.35 $17.70

Based on the proposed sewer rates presented herein, a single-family customer (i.e., one EDU) would see their monthly sewer rate increase from the current $5.45 to $16.35 in the first year (a 200% increase) and increase to $17.70 by the end of the five-year period. The sewer rate per month for other land use classes will be based on the applicable EDU factor as shown in Appendix D herein. The sewer rates by land use category for the full ten-year study period is included in Appendix E herein.

The new sewer rates presented in this study were based on the best information available at the time. Regular updates of the financing and rate projections should be performed as accurate and more complete information becomes available. 3 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com

II INTRODUCTION
The City Sewer Department owns and operates a municipal sanitary sewer system made up of over 280 miles of gravity sewer mains, 11 lift stations and hundreds of manholes which collects wastewater generated within the City as well as certain areas outside of the City and transports it to an independent agency, M1W for treatment and disposal. The City and M1W impose separate wastewater rates for their services and this study looks only at the City’s own wastewater collection charges. M1W, the regional treatment system, is a separate governmental entity that sets its own rates which apply to the City and other regional participants including the Cities of Pacific Grove, Del Rey Oaks, Seaside, Sand City, Fort Ord, Marina, Castroville, Monterey, Moss Landing, and some unincorporated areas in northern Monterey County. The regional treatment rates levied by M1W are not a part of this study.

The City has engaged DTA to prepare an updated rate study to analyze the current revenue requirements of the Sewer Department and develop a rate structure that will result in sufficient stable revenues to pay for O&M, annual debt service requirements, capital improvements and replacement, as well as fund an operating reserve.

In November 2011, the City approved an updated rate study which increased sewer rates from $4.46 per EDU per month to $5.45 per EDU per month effective February 1, 2012.

Although the City Council adopted the General Plan in 2002, the 2011 rate study did not incorporate capital improvement projects to address upsizing for future conditions.

The City’s current sewer rate of $5.45 per residential user or equivalent dwelling unit (EDU) is intended to cover the City’s annual O&M costs, as well as servicing existing debt obligations, but is currently experiencing a shortfall. The City’s sewer enterprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $400,000 for FY 2024-25 and will not meet the required 125% debt service coverage requirement on the existing bonds. In addition, as mentioned above, the current budget does not include capital improvements required for system replacements and upgrades.

A. Purpose
The purpose of this study is to present an updated sewer rate that is in compliance with Proposition 218 requirements as described further in Section II.B below while fully funding revenue requirements for the sewer system as outlined in Section III below.

All numbers used in this sewer rate study were either a) provided by the City or Sewer Department, ii) assumed and agreed upon with the City or Sewer Department, or iii) calculated by DTA using data provided and/or agreed to by the City or Sewer Department.

B. Proposition 218
Ongoing fees for sewer service are commonly called rates. These sewer rates must be supported by a cost-of-service study, or rate study, showing the revenue requirement will be met through the collection of sewer rates as well as a method of reasonably 4 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
apportioning the costs of service to the various customer classes. Sewer rates for ongoing sewer service have a direct relationship to land ownership, hence are considered property-related fees subject to the limitations of Article XIII D, Section 6 of the California Constitution (“Proposition 218”).

In November 1996, the California voters approved Proposition 218, the “Right to Vote on Taxes Act”, which added Article XIII D to the California Constitution. Proposition 218 imposes certain requirements relative to the imposition of certain assessments, fees and charges by local agencies, including the following:

Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service;
Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed; The amount of fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to that parcel; and
No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question.

The rate structure recommended in this study will meet all of the limitations of Proposition 218 in both revenue requirements and proportionality.

In addition, before a local agency can levy new or increased sewer rates, the following procedures are required pursuant to Proposition 218:

Preparation of a rate justification study, prepared by a qualified individual or firm, and the study must justify the proposed rate increase.

The record owner of each parcel subject to the proposed increase must be provided with a written notice of the proposed increase. As industry practice, DTA will also coordinate with the City to mail such notices to the billing address of the sewer customer.

Notice to the record owner must specify the time, date, and location of the public hearing at which the proposed increased fee will be considered. Such notice will also be sent to the billing address of the sewer customer as mentioned above.

A public hearing shall be conducted, held not less than 45 days after mailing the notice, to consider protests to the proposed increased fee.

The increased fee can be approved if a majority of the property owners do not file written protests against the proposed increase. 5 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
C. Approach
The methodology used in this study to determine proposed rate structures will follow the guidelines provided in AWWA, Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices (M1 Manual) as they may apply to sewer collection services.

These guidelines were incorporated in the development of a cost-of-service analysis and a rate model that is used to evaluate Sewer Department specific conditions, criteria, and goals.

D. Current Sewer System
The City of Salinas owns and operates a municipal sanitary sewer collection system (“Sewer System”) that services residents and businesses within its service area. The Sewer System has a service area of approximately 12,430 acres, with over 280 miles of gravity sewer mains and 11 lift stations that convey sewage flows to the Regional Wastewater Treatment Plant, operated by M1W.

E. Sewer Master Plan Update and CIP
On May 2, 2023, through Resolution No. 22648, City Council adopted the Salinas Sanitary Sewer Master Plan Update (“SSMP”). The SSMP identified existing hydraulic deficiencies, operation and maintenance repairs, and lift station upgrades required to keep the existing sanitary sewer system operational. The SSMP estimates sewage flows at 10.46 million gallons per day from the existing sanitary sewer system. Required maintenance repairs and existing hydraulic deficiencies were ranked based on priority. Costs for maintenance repairs and to fix existing hydraulic deficiencies are the sole responsibility of the City rate payers.

The SSMP developed a Sanitary Sewer Capital Improvement Program (“CIP”) that identified capital improvement projects to address both the existing maintenance repairs and deficiencies and upsizing for future conditions. Capital improvement projects were ranked based on priority. Ranking for existing system capital improvement projects was based on the following criteria to prioritize them: impacts to water bodies, design standards, maintenance requirements, impact to the community and proximity to a monitoring manholes. For lift stations, the criteria used to prioritize them were:
impacts to water bodies, inspection frequency, pumping capacity deficiency, peak hour emergency response time, bypass requirement, generator requirement, control or electronic update requirement, and impacts to the community. Possible impacts from future development were also analyzed for maintenance and lift station projects. Future capital improvement projects required exclusively to upsize the sewer system to accommodate future development were not ranked in the SSMP as these improvements must be coordinated and timed with development.

As mentioned earlier, the City’s current sewer rate does not fund capital improvements required for system replacements and upgrades. Of the facilities and costs identified in the CIP, the City has identified only the highest priority projects (“High Priority Projects”) 6 SECTION II

INTRODUCTION

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
that would need to be funded from future rate revenue.

F. Rate Study Organization
In order to fully fund the necessary revenue requirements as identified in the following sections of the rate study, the City’s sewer rates must be increased.

Below is a description of the remaining sections of the rate study:

Section III: Revenue Requirements – This section describes the cost categories that the sewer rate revenue and other revenue sources will need to fund including, operations and maintenance costs (“O&M”), capital expenditures, debt service, and contributions to the operating reserve.

Section IV: Sewer Rate Analysis – This section describes the proposed rates to be charged to sewer customers in the City and the calculations used in determining a sewer rate structure that can fully fund the revenue requirements described in Section III.

Section V: Implementation of Rates – This section includes the proposed updated sewer rates for the various land uses over the next five years.

Section VI: Conclusion – This section includes the overall conclusions. 7 SECTION III

RATE REVENUE

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com

III REVENUE REQUIREMENTS
The Revenue Requirements, or cost categories, that rate revenue and other revenue sources will need to pay for include, operations and maintenance costs (“O&M”), capital expenditures, debt service, and contributions to an operating reserve. These cost categories are described in greater detail below.

A. Operations and Maintenance
The Sewer Department’s O&M costs include salaries and benefits, supplies and materials, outside services, and other charges as identified on pages 379 and 383 of the City’s fiscal year 24/25 Operating Budget, adopted by Resolution No. 22979. The O&M cost projections use the baseline costs from the City’s adopted operating budget for fiscal year 24/25, as shown in the section, “Enterprise Operations, 5442 Sanitary Sewer Division.” The City’s costs are escalated by a factor of 7.5% annually as a reasonable estimate of future costs based on several factors identified by the City including labor costs, contributions for pension liabilities, and utility costs (i.e., electricity for pump stations, etc.) which are escalating at much higher rates than inflation.

B. Capital Expenditures
Capital costs are based on Tables 7-4, 7-5, and 7-6 of the Sanitary Sewer Master Plan Update dated May 2023, approved by Resolution No. 22648. Of the total capital costs, the City identified certain High Priority Projects as shown in Appendix C to be funded by the proposed sewer rate. The total cost of the sewer system capital upgrades assigned to existing development, adjusted for inflation, is equal to approximately $114.8 million. The listing of capital improvement projects are divided into three categories; i) Maintenance and repairs to the existing sewer system; ii) Sewer upsizing costs allocated to existing development; and iii) Lift Stations. Maintenance and repair projects address hydraulic and maintenance deficiencies of the existing sewer system.

These improvements were identified as pipelines without the required velocities, with sags or failures, or with blockages that constrain flows. In addition, sewer upsizing projects will correct existing capacity deficiencies to upsize pipelines to allow sewers to flow more efficiently. Lift station projects will address upgrades to outdated systems and will provide uniformity and redundancy to the overall system. These High Priority Projects are described in further detail below:

B.1. Existing Sewer Collection
The SSMP identified thirty-one (31) sewer collection system projects and eleven (11) lift station projects that have hydraulic deficiencies and maintenance concerns under existing conditions. The Wallace Group recommended that these projects be completed over a five to 15-year period. The City then adjusted the timing of the expenditures to more closely match the City’s capacity to implement the appropriate level of projects on an annual basis. The City identified thirteen (13) projects from the 8 SECTION III

RATE REVENUE

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
list of projects identified in the SSMP that would be expected to be implemented within the next ten years. The total costs for these projects, adjusted for inflation at 3% per annum, is $70.7 million. See Table C-1 in Appendix C herein for project costs and timeline, adjusted for 3% inflation.

B.2. Sewer Upsizing
The SSMP identified nine (9) projects that will need existing sewer lines to be upsized due to existing deficiencies and the need to provide additional capacity for new development. Wallace Group provided allocations of costs to new and existing development based on existing and future flow and pipe sizes. The City then provided updated cost projections and project timing for seven of the nine projects listed in the SSMP. The total projected costs for these projects, adjusted for inflation at 3% per annum, is estimated to be $20.6 million as shown in Table C-2 in Appendix C herein.

B.3 Lift Stations
The City owns and operates eleven (11) sewer lift stations throughout the City and also maintains one lift station funded through an existing assessment district. All lift stations are integral with the City’s sewer collection system. The SSMP evaluated each of the lift stations and force mains for hydraulic performance and emergency response times in the event of sanitary sewer overflow conditions. The SSMP provided present value costs for the lift station upgrades recommended by the analysis. The City provided the timing and costs for seven (7) of the eleven lift stations mentioned in the SSMP that are expected to be completed within the next seven (7) years. The total projected costs for these projects, adjusted for inflation at 3% per annum, is estimated to be $23.5 million as shown in Table C-3 in Appendix C herein.

B.4 Total Costs for High Priority Projects
Table 2 below is a summary of the total costs for the High Priority Projects as described above, adjusted for inflation, used for setting the updated sewer rates. Table C-4 in Appendix C herein summarizes the total costs by year.

Table 2
Costs for High Priority Projects
Description Cost
Sewer Collection $70.7 million
Sewer Upsizing $20.6 million
Lift Stations $23.5 million
Total $114.8 million
9 SECTION III

RATE REVENUE

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
C. Debt Service
Debt service includes the annual principal and interest payments on bonds issued by the City whose proceeds are used to pay for capital improvements to the City-wide sewer system. The debt service for both existing bonds issued and bonds that are proposed to be issued in the future are intended to be paid for from rate revenue.

Existing Debt Service - The existing annual bond debt service to be paid by sewer rates consist of annual principal and interest payments for Wastewater Revenue Refunding Bonds Series 2020A. First issued in 2020, the annual debt service on these bonds is indicated in the rate model herein over the next ten (10) years.

Proposed Debt Service – The timing of capital improvements and the acceptable levels of pay-as-you-go financing of such improvements suggest that funding a portion of the capital improvements by debt in the form of revenue bonds would not only reduce the annual revenue requirement of the capital facilities program, but also reduce the annual sewer rates required to cover the costs of operations and maintenance, reserves and total debt service as compared to a complete pay-as-yougo alternative.

The timing of issuance and the amounts of the bonds are dependent upon the timing and costs of the capital projects in accordance with the goals of the City, as identified in Section B above. For purposes of this analysis, three separate bond issuances were considered, issued in years 2, 5 and 8 during the ten (10) year study period. Please refer to Appendix B for additional bond assumptions.

D. O&M Reserve Requirements
Starting in fiscal year 26/27 of this study, it is assumed that 50% of the total annual operating expenses (i.e., 180 days of operating reserves which is based on industry practice for similar utilities) from the net operating income after debt service will be transferred to a newly established operating reserve fund. The City expects to adopt a formal reserve policy following the adoption of this rate study. 10 SECTION IV

SEWER RATE ANALYSIS

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com

IV SEWER RATE ANALYSIS
A. Current Rate Structure
The City currently funds the majority of its operational and capital improvement costs through sewer rate revenue. For reference, M1W is the sewer treatment provider in northern Monterey County. M1W is responsible for the treatment of wastewater while the City is responsible for collecting and transporting wastewater to M1W. This shared responsibility is reflected on the monthly bill to property owners.

The City’s current sewer rates included on the monthly bills sent by M1W are charged on a per EDU basis. The current Fiscal Year 24/25 sewer rate is equal to $5.45 per EDU per month. For Fiscal Year 24/25, the activities of which consisted of routine operation and maintenance as well as debt service payments on existing bonds, the revenues were less than the expenditures. The deficit in expenses versus revenues demonstrates that the current rates are not sufficient to maintain the existing system.

B. Proposed Rate Structure
The proposed rate structure utilizes both pay-as-you-go rate collections as well as bond issuances to fund the annual O&M costs and a minimum level of capital facilities.

Projections under this rate structure suggest that the City will have sufficient reserves to continue meeting debt service and capital needs by the end of FY 2034-35. Please see below for a summary of the findings:
 Year 1 Monthly Rate per EDU (2025) - $16.35
 Sewer Rate escalates annually by 2%
 Estimated Year 10 Capital Replacement Fund Balance: $7.5 million  Estimated Total Facilities Funded through Bonds and Pay-Go: $114.8 million C. Equivalent Dwelling Units
As mentioned earlier, this study uses an EDU methodology to allocate costs to the various land uses for the City’s billing purposes. The flow per land use unit is divided by the flow per single family land use unit to determine the flow relative to a single family unit (EDU per Billing Unit). Note that the flow per land use unit factors are averages provided by M1W. The number of customer connections and the flow per connection for each land use as of July 2024 was provided to the City by M1W. The total City-wide EDUs were then determined by multiplying the EDU per Billing Unit by the number of connections for that land use category. Since the City’s sewer infrastructure consists of City-wide collection and not treatment, the EDUs are based only on flow. The tabulation for total City-wide EDUs (61,745) is shown in Appendix D.

For the purposes of projecting growth in EDUs over the ten-year study period, a 1% 11 SECTION IV

SEWER RATE ANALYSIS

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com
per year growth factor is assumed.

D. Model Considerations
It is evident that there are many combinations of assumptions that affect the determination of a rate structure calculation that can potentially meet the revenue requirements on an annual basis. Factors including inflation, annual rate escalations, debt service and customer growth play into the determination of such a rate structure.

12 SECTION V

IMPLEMENTATION OF RATES
City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com

V IMPLEMENTATION OF RATES
As described in this study, the rates are proposed to be increased and phased in over a five (5) year period as shown in Table 3 below. In order to fully fund the costs as described in this study, the sewer rates will need to continue to increase beyond the five (5) year period.

Rates for all land uses will see a 200% increase in year 1 and an annual increase of 2% each year thereafter during the five (5) year period. The annual increase is necessary in order to fully fund all revenue requirements.

Table 3: Proposed Rate per EDU per month
Fiscal Year 25/26 26/27 27/28 28/29 29/30
Rate per
EDU per
month
$16.35 $16.68 $17.01 $17.35 $17.70

It is strongly suggested that in Year 5 (FY 2029-30), the City review their annual operation and maintenance costs, capital facilities costs and timing, demographics information, as well as the various modelling assumptions and update the sewer rates, if needed.

The full 10-year rate model is included in Appendix A herein. The sewer rates by land use category for the 10-year study period is included in Appendix E herein. 13 SECTION VI

CONCLUSION

City of Salinas June 24, 2025
Sewer Rate Study
www.FinanceDTA.com

VI CONCLUSION
The final sewer rates contained in this study are a result of an extensive public process with input received from City staff and the City Council and are based on the best information available at the time. Regular review and evaluation of the financing and rate projections should be performed as accurate and more complete information becomes available. The rates should be reviewed annually to take into account the results of local project construction bids, actual O&M and capital facilities costs, actual financing received for the projects, and adjustment to the rates may be considered, as necessary.

The new sewer rates, as shown in Table 3 herein, are designed to produce revenues to fund operations and maintenance, new capital improvement projects, debt service and an operating reserve over the next five years.

Based on the new sewer rates presented herein, a single-family customer would see their monthly sewer rate increase from the current $5.45 to $16.35 in the first year (a 200% increase), and increase to $17.70 by the end of the five-year period.

It is strongly suggested that in Year 5 (FY 2029-30), the City review their annual operation and maintenance costs, capital facilities costs and timing, demographics information, as well as the various modelling assumptions and update the sewer rates, if needed.

APPENDIX A
City of Salinas
Sewer Rate Study

SEWER RATE MODEL
Study Year Number Current
Budget1 1 2 3 4 5 6 7 8 9 10
Calendar Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Rate ($ per EDU -Monthly) $ 5.45 $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 $ 18.05 $ 18.41 $ 18.78 $ 19.16 $ 19.54 200.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% EDUs 61,745 61,745 62,362 62,986 63,616 64,252 64,895 65,544 66,199 66,861 67,530 Operations
Operating Revenue
City of Salinas Rate Revenue $ 4,038,123 $ 12,114,370 $ 12,480,224 $ 12,857,127 $ 13,245,412 $ 13,645,424 $ 14,057,516 $ 14,482,053 $ 14,919,411 $ 15,369,977 $ 15,834,150 Investment Interest
Net Income Carry Forward from Prior Year 0 0 0 0 0 0 0 0 0 0 0 Inspection Fees
Total Operating Revenue 4,038,123 $ $ 12,114,370 $ 12,480,224 $ 12,857,127 $ 13,245,412 $ 13,645,424 $ 14,057,516 $ 14,482,053 $ 14,919,411 $ 15,369,977 $ 15,834,150 $ 139,005,663 Operational Expenses
Salaries and Benefits $ 1,954,090 $ 2,100,647 $ 2,258,195 $ 2,427,560 $ 2,609,627 $ 2,805,349 $ 3,015,750 $ 3,241,931 $ 3,485,076 $ 3,746,457 $ 4,027,441 Supplies and Materials $ 241,000 $ 259,075 $ 278,506 $ 299,394 $ 321,848 $ 345,987 $ 371,936 $ 399,831 $ 429,818 $ 462,055 $ 496,709 Outside Services $ 388,000 $ 417,100 $ 448,383 $ 482,011 $ 518,162 $ 557,024 $ 598,801 $ 643,711 $ 691,989 $ 743,889 $ 799,680 Other Charges $ 397,500 $ 427,313 $ 459,361 $ 493,813 $ 530,849 $ 570,663 $ 613,462 $ 659,472 $ 708,932 $ 762,102 $ 819,260 NPDES Allocation $ 536,920 $ 577,189 $ 620,478 $ 667,014 $ 717,040 $ 770,818 $ 828,629 $ 890,777 $ 957,585 $ 1,029,404 $ 1,106,609 Total Operational Expenses $ 3,517,510 $ 3,781,323 $ 4,064,922 $ 4,369,792 $ 4,697,526 $ 5,049,841 $ 5,428,579 $ 5,835,722 $ 6,273,401 $ 6,743,906 $ 7,249,699 $ 53,494,711 Net Operating Income before Debt Service $ 520,613 $ 8,333,047 $ 8,415,302 $ 8,487,335 $ 8,547,886 $ 8,595,583 $ 8,628,937 $ 8,646,331 $ 8,646,009 $ 8,626,071 $ 8,584,451 $ 85,510,952 Debt Service
Current Debt Service $ 856,080 $ 865,385 $ 863,002 $ 859,384 $ 863,658 $ 862,054 $ 864,951 $ 861,608 $ 862,093 $ 856,582 $ 860,170 $ 8,618,887 First Issuance $ - $ 2,780,298 - $ $ 2,780,298 $ 2,780,298 $ 2,780,298 $ 2,780,298 $ 2,780,298 $ 2,780,298 $ 2,780,298 Second Issuance $ - $ - $ - $ - $ - $ 981,951 $ 981,951 $ 981,951 $ 981,951 $ 981,951 Third Issuance $ - $ - $ - $ - $ - $ - $ - $ - $ 1,850,063 $ 1,850,063 Total Debt Service 856,080 $ $ 865,385 $ 863,002 $ 3,639,683 $ 3,643,957 $ 3,642,353 $ 4,627,201 $ 4,623,858 $ 4,624,342 $ 6,468,895 $ 6,472,483 Debt Service Ratio (1.25 Minimum) 0.61 9.63 9.75 2.33 2.35 2.36 1.86 1.87 1.87 1.33 1.33 Net Operating Income After Debt Service $ (335,467) $ 7,467,662 $ 7,552,300 $ 4,847,653 $ 4,903,930 $ 4,953,231 $ 4,001,736 $ 4,022,473 $ 4,021,667 $ 2,157,176 $ 2,111,968 $ 46,039,796 .

Transfer to Operating Reserve $ (2,032,461) $ (152,435) $ (82,569) $ (127,785) $ (139,775) $ (149,526) $ (160,677) $ (172,742) $ (185,699) Transfer to Capital Replacement Program $ (7,467,662) $ (5,519,839) $ (4,695,218) $ (4,821,361) $ (4,825,446) $ (3,861,961) $ (3,872,947) $ (3,860,990) $ (1,984,434) $ (1,926,270) $ (42,836,128) Net Year End Balance in Operating Account $ - $ - $ 0 $ - $ 0 $ - $ - $ - $ - $ - Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Operating Reserve Fund Balance
Carry Forward from Prior Year $ - $ 2,032,461 - $ $ 2,032,461 $ 2,225,545 $ 2,352,625 $ 2,527,462 $ 2,717,786 $ 2,921,667 $ 3,140,778 $ 3,376,335 Maintain 50% of Annual Operational Expenses (180 days) $ 152,435 $ 82,569 $ 127,785 $ 139,775 $ 149,526 $ 160,677 $ 172,742 $ 185,699 Interest Earnings on Fund Balance $ 40,649 $ 44,511 $ 47,052 $ 50,549 $ 54,356 $ 58,433 $ 62,816 $ 67,527 Less: Transfer Interest Earnings to Capital Fund $ - $ - $ - $ - $ - $ - $ - $ - Less: Outlay $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Year End Balance $ 2,032,461 - $ $ 2,225,545 $ 2,352,625 $ 2,527,462 $ 2,717,786 $ 2,921,667 $ 3,140,778 $ 3,376,335 $ 3,629,561 Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Capital Replacement Fund Balances
Carry Forward from Prior Year 0 $ 1,304,540 - $ $ 31,924,450 $ 16,395,620 $ 50,605 $ 8,561,773 $ 3,340,430 $ 52,842 $ 19,213,479 $ 11,385,420 Transfer In from Operating Account 0 7,467,662 $ $ 5,519,839 $ 4,695,218 $ 4,821,361 $ 4,825,446 $ 3,861,961 $ 3,872,947 $ 3,860,990 $ 1,984,434 $ 1,926,270 $ 42,836,128 Interest Earnings on Fund Balance 0 $ 26,091 $ 638,489 $ 327,912 $ 1,012 $ 171,235 $ 66,809 $ 1,057 $ 384,270 $ 227,708 $ 1,844,583 Interest Earnings from Operating Reserve $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Bond Issuance $ 38,463,802 - $ $ - $ 13,584,724 - $ $ - $ 25,594,537 - $ $ - $ - Less: Capital Outlay for Projects $ - $ 6,163,122 $ 13,389,822 $ 20,862,537 $ 21,494,288 $ 9,900,014 $ 9,254,539 $ 7,227,344 $ 10,295,947 $ 10,196,763 $ 6,037,883 $ 114,822,258 Year End Balance $ - $ 1,304,540 $ 31,924,450 $ 16,395,620 $ 50,605 $ 8,561,773 $ 3,340,430 $ 52,842 $ 19,213,479 $ 11,385,420 $ 7,501,515 Notes:

1. The current monthly rate per EDU of $5.45 is insufficient to meet operating expenses and debt service requirements.

5.00% 5.00% 5.00%
30 30 30

3.50% 3.50% 3.50%

0.00% 0.00% 0.00%

6.51% 6.51% 6.51%
$42,740,000 $15,095,000 $28,440,000
Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 $ 2,780,298 $ 981,951 $ 1,850,063
BOND PROCEEDS $ 38,463,802 BOND PROCEEDS $ 13,584,724 BOND PROCEEDS $ 25,594,537 2 5 8
Assumptions: Criteria:

O&M Inflation Factor = 7.5% 1. Minimal year end balance at 10th year Total CIP Bond Proceeds PayGo Annual Rate Escalation= 2% 2. CIP funded through 31% rates and 69% bonds $ 114,822,258 $ 77,643,062 $ 37,179,196 Annual EDU Growth Rate= 1% 3. Bonds Issued in Years 2,5 and 8 100.00% 67.62% 32.38% Minimum Debt Service Ratio= 1.25% 4. CIP based on costs and timeline provided by Wallace and adjusted by City Rate Stabilization Fund not required 5. Transfer to O&M reserve fund based on 50% of annual operating expenses CIP Allocation

ANNUAL PAYMENT ANNUAL PAYMENT ANNUAL PAYMENT

ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR

RESERVE FUND RESERVE FUND RESERVE FUND

BOND AMOUNT BOND AMOUNT BOND AMOUNT
COST OF ISSUANCE (%) COST OF ISSUANCE (%) COST OF ISSUANCE (%)

BOND PREMIUM BOND PREMIUM BOND PREMIUM

AVERAGE COUPON AVERAGE COUPON AVERAGE COUPON

BOND TERM (YEARS) BOND TERM (YEARS) BOND TERM (YEARS)
City of Salinas - Sewer Rates/Max Bonding Capacity with minimum 125% coverage (32% PayGo with 68% Bonds) Calendar Years 2025-2034
Totals
Years 1-10
Totals

FIRST ISSUANACE SECOND ISSUANACE THIRD ISSUANACE

APPENDIX B
City of Salinas
Sewer Rate Study

RATE MODEL

ASSUMPTIONS

The rate model included in Appendix A herein was designed to allow for sufficient sewer rate revenues to pay for operations and maintenance, annual debt service requirements, capital improvements and replacement, as well as fund an operating reserve. The assumptions used in this model include the following:
 Key assumptions related to the rate model are listed below:

The number of customers, and the corresponding EDUs, is provided by M1W.

Positive net operating income after debt service (i.e., net operating income is rate revenue less O&M and debt service)
O&M and capital improvement projects and costs were provided by the City.

Fund O&M reserve fund equal to 50% of the total annual operating expenses Positive net operating income after debt service in any given year will be transferred to the Capital Replacement Fund
The beginning Capital Replacement Fund balance is $0 (i.e., Capital Replacement Fund consists of net operating income deposited to fund plus interest earnings plus bond proceeds less costs for capital facilities) Capital Replacement Fund expenditures over 10 years will be in accordance with the timeline provided by City
 Key assumptions related to inflation and rate escalation are listed below:

7.5% Estimated Annual O&M Cost Inflation

3.0% Estimated Annual Capital Facilities Cost Inflation

2.0% Estimated Annual Rate Escalation

2.0% Estimated Investment Return on Reserve Balances

1.0% Annual Development Growth: The City and Wallace Group expects a modest increase in the number of EDUs over the next decade as the population grows.
 Key assumptions related to the bonds are listed below:

Bonds to be issued in Years 2, 5, and 8
Bond interest rate is equal to 5.00%
Construction proceeds equal to 90% of the bond issue amount Bond Term of 30 years
Minimum 125% debt service coverage
Please note that all numbers used in this sewer rate study were either i) provided by the City or their consultants, ii) assumed and agreed upon with the City, or iii) calculated by DTA using data provided and/or agreed to by the City or their consultants.

APPENDIX C
City of Salinas
Sewer Rate Study

HIGH PRIORITY PROJECT

COST TABLES
Table C-1
Sewer Collection System Repair, Rehabilitation and Replacement 0 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026 2027 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 1 Cesar Chavez Park 300,000 - 4,164,681 4,289,622 4,418,310 - - - - - - - - - - - 2 Upper Carr Lake Repairs 1,157,205 - - - - - - - - - - 3 Upstream TP2 Diversion - - 66,837 - - - - - - - - 4 Northridge Mall 300,000 - 2,453,872 - - - - - - - - 5 East Market and Upstream of Lake Street - 309,000 - 1,648,511 - - - - - - - 6 Louise and Van Buren Street Repair - - - - - - - 365,887 - - - 7 West Market at Davis Overcrossing - - - - - - - - - - - 8 Cherokee Drive - 309,000 - 2,533,429 - - - - - - - 9 Malarin St and Wilgart Way Repairs - - - - - - - - - - - 10 Romie Lane Repairs and Reconfig Analysis - - - - - 119,405 - - 134,392 - 11 King Street Repairs - - - - 225,102 - 717,591 - - - - 12 Del Monte and Mae Repairs - - - - - - - - 654,866 - 674,512 13 Riker Street Repairs - - - - - - - - - 15,052 - 14 West Market Street Repairs - - 863,929 889,847 15 Joohnson Place Repairs - - - - - - - - - - - 16 N Main St Hwy 101 Underpass Bunkder Repair - - - - - - - - - - - 17 Donner Way - - - 204,496 - - - - - 18 San Miguel Ave Repair - - - - - - - - - - - 19 Noice Dr/ Tyler Street - - - - - - 358,216 - 5,485,237 - - 20 Natividad Rd - - - - - - - - - - - CIPs 21 thru 27 - - - - - - - - - - CCTV Sewers 1,120,150 - 1,153,755 1,188,367 1,224,018 1,260,739 1,298,561 1,337,518 1,377,643 1,418,973 1,461,542 CCTV Inspection Program 153,897 158,514 163,269 168,167 173,212 178,409 183,761 189,274 194,952 200,801 CIPP Line Sewers 2,060,000 - 2,060,000 2,121,800 2,185,454 2,251,018 2,318,548 2,388,105 2,459,748 2,533,540 2,609,546 Full Replacement Sewers - - - - - - - - - - - Root Removal 41,200 - 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 52,191 Sewer Manhole Replacement - - - - - - - - - - - Sewer Manhole Lining - - - - - - - - - - - total 0 5,132,452 10,650,022 12,054,271 8,244,155 3,955,091 4,559,479 4,434,766 9,926,985 5,716,931 6,037,883 Cumulative $ 5,132,452 - $ $ 15,782,474 $ 27,836,745 $ 36,080,900 $ 40,035,991 $ 44,595,471 $ 49,030,237 $ 58,957,222 $ 64,674,152 $ 70,712,035 Project
Number ………………………….…………Project.Year………
………………….…….…...Fiscal.Year..Project
Name…………………...…
Table C-2
Sewer Collection System Upsizing
0 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 1 San Juan Grade 309,000 - 1,257,827 1,295,562 - - - - - - 2 North Davis Road 257,500 - 2,548,268 2,624,716 2,703,458 - - - - - 3 West Laurel Drive - - - - - - - - - - 4 Victor Street - - - - - - - - - - 5 Freedom Parkway - - 237,122 - - - - - - - 6 Natividad Creek Park 250,000 1,967,300 - - - - - - - - 7 East Alisal Street - 265,225 - 1,695,912 - - - - - - 8 Abbot Street 380,670 - - - - - - - - - 9 South Sanborn Road - - - - - - 368,962 - 4,479,832 - Totals $ 630,670 $ 2,533,800 $ 4,071,320 $ 5,853,312 $ 2,703,458 $ - $ 368,962 - $ $ 4,479,832 $ - Cumulative $ 630,670 - $ $ 3,164,470 $ 7,235,790 $ 13,089,103 $ 15,792,560 $ 15,792,560 $ 15,792,560 $ 16,161,523 $ 20,641,355 $ 20,641,355 Project
Number ………………………….…………Project.Year………
………………….…….…...Fiscal.Year..Project
Name…………………...…
Table C-3
Sewer Lift Stations
0 1 2 3 4 5 6 7
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 1 Lake Street Lift Station 400,000 4,524,765 - 4,660,508 - - - 2 Santa Rita Lift Station 206,000 - 2,736,313 - - - - 3 Spicer Lift Station - 212,180 - 3,241,465 - - - 4 Mill Lake Lift Station - - - - 4,463,205 - - 5 Carpenter Hall Lift Station - - - - 231,855 - 1,430,923 6 De Ls Torre Lift Station - - - - - 24,315 - 7 Vista Nueva Lift Station - - - - - - - 8 Harkins Road Lift Stataion - - - - - - - 9 Las Casitas Lift Station - - - - - - - 10 TP 2 Lift Station - - - - - - - 11 Airport Lift Station - - - - - 1,337,339 - total $ 400,000 - $ $ 206,000 $ 4,736,945 $ 7,396,821 $ 3,241,465 $ 4,695,060 $ 2,792,577 Cumulative $ 400,000 - $ $ 606,000 $ 5,342,945 $ 12,739,766 $ 15,981,231 $ 20,676,291 $ 23,468,869 Project
Number ………………………….…………Project.Year………
………………….…….…...Fiscal.Year..Project
Name…………………...…
Table C-4
Total Costs for High Priority Projects by Year

Description 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 FY 2034-35 Sewer Collection $5,132,452 $10,650,022 $12,054,271 $8,244,155 $3,955,091 $4,559,479 $4,434,766 $9,926,985 $5,716,931 $6,037,883 Sewer Upsizing $630,670 $2,533,800 $4,071,320 $5,853,312 $2,703,458 $0 $0 $368,962 $4,479,832 $0 Lift Stations $400,000 $206,000 $4,736,945 $7,396,821 $3,241,465 $4,695,060 $2,792,577 $0 $0 $0 Total $6,163,122 $13,389,822 $20,862,536 $21,494,288 $9,900,014 $9,254,539 $7,227,343 $10,295,947 $10,196,763 $6,037,883 Cumulative $6,163,122 $19,552,944 $40,415,481 $61,909,769 $71,809,783 $81,064,322 $88,291,666 $98,587,613 $108,784,376 $114,822,258

APPENDIX D
City of Salinas
Sewer Rate Study

EDU SUMMARY
City Code Description Billing Units Flow per
Unit
EDU per
Billing
Unit
EDUs
001 Business/Government (for every 10 employees) 3,809 0.78 117 2,971 102 Residence 23,311 1.00 150 23,311 105 Multi Residence - Apts 17,630 1.00 150 17,630 107 Condominium 2,438 1.00 150 2,438 109 Retirement Complex 136 1.00 150 136
221 Hotel/Motel 1,896 0.44 66 834
231 Supermarket 34 4.25 638 145
241 Medical 323 1.04 156 336
242 Dental 114 1.43 215 163
243 Rest Home/ Convalescent 950 0.29 43 272
244 Surgery Center/ General Hospital 11 1.71 256 19
245 Animal Hospital 292 6 1.95 12
261 Restaurant - 1 Meal 389 0.04 6 16
262 Restaurant - 2 Meals. 4,422 0.06 9 265
263 Restaurant - 3 Meals. 1,761 0.11 17 200
264 Restaurant w/ Bar 737 0.11 17 84
265 Bar 3,372 1.69 254 5,710
266 Night Club 760 2 5.07 10
267 Take-Out Small 180 1.89 283 340
268 Take-Out Medium 39 4.65 697 181
269 Take-Out Large 1,270 20 8.47 169
270 Bakery 54 1.53 230 83
281 Theater 377 4 2.51 10
282 Bowling Center 1,146 2 7.64 15
283 Gym - 500 Members 117 8 0.78 6
285 Gym - 1500 Members 351 1 2.34 2
286 Gym - 2000 Members 468 1 3.12 3
292 School - Pre Grade 6 22,272 0.01 2 297
293 School - Grade 7 -College 18,493 0.03 4 493
294 School - Boarding 2,688 0.27 40 717
295 Instructional Facility 117 7 0.78 5
296 Church - Small 51 0.78 117 40
297 Church - Large 30 1.56 234 47
301 Photo Developer 11 0.78 117 9
311 Laboratory - 10 employees 21 0.78 117 16
331 Garage Repair 134 0.75 112 100
332 Garage 11-20 employees 112 3 0.75 2
341 Paint Shop - 10 employees 61 0.78 117 48
342 Paint Shop - 20 employees 234 5 1.56 8
351 * Industrial Laundry 76,885 2 512.57 1,025
352 * Commercial Laundry 1,845 1 12.30 12
353 Dry Cleaner 386 5 2.57 13
354 Laundromat 1,162 0.68 102 790
366 * Car Wash 2,424 17 16.16 275
367 * Truck/ Bus Wash 1,538 4 10.25 41
401 * Special User 9,611 23 64.07 1,474
403 * Chemical Pesticides 2,768 1 18.45 18
405 * Water Softener 18,299 1 121.99 122
406 * Food Processor 9,611 6 64.07 384
407 * Rec/Sports Facility 2,307 4 15.38 62
408 * Inedible Renderer 49,206 1 328.04 328
410 * Groundwater Discharger 4,357 2 29.05 58
Totals 61,745
* Land use category is classified as a special user for purposes of charging the sewer rate.

APPENDIX E
City of Salinas
Sewer Rate Study

FIVE-YEAR RATE SUMMARY

BY LAND USE
City Code Description (other than Special Users) Units FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 001 Business/Government Location/Each Business ($ for every 10 employees) $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 102 Residence Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 105 Multi Residence - Apts Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 107 Condominium Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 109 Retirement Complex Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 221 Hotel/Motel Each Room $ 7.19 $ 7.34 $ 7.48 $ 7.63 $ 7.79 222 Bed & Breakfast Each Room $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 231 Supermarket Location $ 69.54 $ 70.93 $ 72.35 $ 73.80 $ 75.27 241 Medical Each Licensed Physician $ 17.00 $ 17.34 $ 17.69 $ 18.04 $ 18.41 242 Dental Each Licensed Dentist $ 23.44 $ 23.90 $ 24.38 $ 24.87 $ 25.37 243 Rest Home/ Convalescent Each Bed of Licensed Capacity $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 244 Surgery Center/ General Hospital Each Bed of Licensed Capacity $ 27.90 $ 28.46 $ 29.03 $ 29.61 $ 30.20 245 Animal Hospital Location/Each Licensed Business $ 31.83 $ 32.46 $ 33.11 $ 33.78 $ 34.45 261 Restaurant - 1 Meal Each Restaurant Seat $ 0.65 $ 0.67 $ 0.68 $ 0.69 $ 0.71 262 Restaurant - 2 Meals Each Restaurant Seat $ 0.98 $ 1.00 $ 1.02 $ 1.04 $ 1.06 263 Restaurant - 3 Meals Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 264 Restaurant w/ Bar Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 265 Bar Location/Each Business $ 27.69 $ 28.24 $ 28.80 $ 29.38 $ 29.97 266 Night Club Location/Each Business $ 82.84 $ 84.50 $ 86.19 $ 87.91 $ 89.67 267 Take-Out Small 1 Cash Register or Checkout Line $ 30.85 $ 31.46 $ 32.09 $ 32.74 $ 33.39 268 Take-Out Medium 2 or 3 Cash Registers or Checkout Lines $ 75.97 $ 77.49 $ 79.04 $ 80.62 $ 82.24 269 Take-Out Large 4 or More Cash Registers or Checkout Lines $ 138.43 $ 141.20 $ 144.02 $ 146.90 $ 149.84 270 Bakery Location/Each Business $ 25.07 $ 25.57 $ 26.08 $ 26.60 $ 27.14 281 Theater Per Screen @ Each Location $ 41.09 $ 41.91 $ 42.75 $ 43.61 $ 44.48 282 Bowling Center Location/Each Business $ 124.91 $ 127.41 $ 129.96 $ 132.56 $ 135.21 283 Gym - 500 Members $ for every 500 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 292 School - Pre Grade 6 School Population $ 0.22 $ 0.22 $ 0.23 $ 0.23 $ 0.24 293 School - Grade 7 -College School Population $ 0.44 $ 0.44 $ 0.45 $ 0.46 $ 0.47 294 School - Boarding School Population $ 4.36 $ 4.45 $ 4.54 $ 4.63 $ 4.72 295 Instructional Facility Location/Each Business $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 296 Church - Small (1-100 Members) Per 100 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 297 Church - Large (> 100 Members) Per 100 members $ 25.51 $ 26.02 $ 26.54 $ 27.07 $ 27.61 301 Photo Developer / Printer $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 311 Laboratory - 10 employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 331 Garage Repair $ for every 10 employees $ 12.21 $ 12.45 $ 12.70 $ 12.96 $ 13.21 341 Paint Shop - 10 employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 353 Dry Cleaner Location/Each Business $ 42.07 $ 42.92 $ 43.77 $ 44.65 $ 45.54 354 Laundromat Each Washing Machine $ 11.12 $ 11.34 $ 11.57 $ 11.80 $ 12.03 Sewer Rate per EDU per Month
City Code Description (Special Users) * Units FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 351 Industrial Laundry Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 352 Commercial Laundry Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 366 Car Wash Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 367 Truck/ Bus Wash Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 401 Special User Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 403 Chemical Pesticides Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 405 Water Softener Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 406 Food Processor Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 407 Rec/Sports Facility Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 408 Inedible Renderer Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 410 Groundwater Discharger Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 * There may be other special user categories in the future as designated by M1W which would also be charged at the sewer rate shown in the table above.

Sewer Rate per Month
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
www.FinanceDTA.com
City Code Description (other than Special Users) Units FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 001 Business/Government Location/Each Business ($ for every 10 employees) $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 102 Residence Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 105 Multi Residence - Apts Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 107 Condominium Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 109 Retirement Complex Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 221 Hotel/Motel Each Room $ 7.19 $ 7.34 $ 7.48 $ 7.63 $ 7.79 222 Bed & Breakfast Each Room $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 231 Supermarket Location $ 69.54 $ 70.93 $ 72.35 $ 73.80 $ 75.27 241 Medical Each Licensed Physician $ 17.00 $ 17.34 $ 17.69 $ 18.04 $ 18.41 242 Dental Each Licensed Dentist $ 23.44 $ 23.90 $ 24.38 $ 24.87 $ 25.37 243 Rest Home/ Convalescent Each Bed of Licensed Capacity $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 244 Surgery Center/ General Hospital Each Bed of Licensed Capacity $ 27.90 $ 28.46 $ 29.03 $ 29.61 $ 30.20 245 Animal Hospital Location/Each Licensed Business $ 31.83 $ 32.46 $ 33.11 $ 33.78 $ 34.45 261 Restaurant - 1 Meal Each Restaurant Seat $ 0.65 $ 0.67 $ 0.68 $ 0.69 $ 0.71 262 Restaurant - 2 Meals Each Restaurant Seat $ 0.98 $ 1.00 $ 1.02 $ 1.04 $ 1.06 263 Restaurant - 3 Meals Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 264 Restaurant w/ Bar Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 265 Bar Location/Each Business $ 27.69 $ 28.24 $ 28.80 $ 29.38 $ 29.97 266 Night Club Location/Each Business $ 82.84 $ 84.50 $ 86.19 $ 87.91 $ 89.67 267 Take-Out Small 1 Cash Register or Checkout Line $ 30.85 $ 31.46 $ 32.09 $ 32.74 $ 33.39 268 Take-Out Medium 2 or 3 Cash Registers or Checkout Lines $ 75.97 $ 77.49 $ 79.04 $ 80.62 $ 82.24 269 Take-Out Large 4 or More Cash Registers or Checkout Lines $ 138.43 $ 141.20 $ 144.02 $ 146.90 $ 149.84 270 Bakery Location/Each Business $ 25.07 $ 25.57 $ 26.08 $ 26.60 $ 27.14 281 Theater Per Screen @ Each Location $ 41.09 $ 41.91 $ 42.75 $ 43.61 $ 44.48 282 Bowling Center Location/Each Business $ 124.91 $ 127.41 $ 129.96 $ 132.56 $ 135.21 283 Gym - 500 Members $ for every 500 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 292 School - Pre Grade 6 School Population $ 0.22 $ 0.22 $ 0.23 $ 0.23 $ 0.24 293 School - Grade 7 -College School Population $ 0.44 $ 0.44 $ 0.45 $ 0.46 $ 0.47 294 School - Boarding School Population $ 4.36 $ 4.45 $ 4.54 $ 4.63 $ 4.72 295 Instructional Facility Location/Each Business $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 296 Church - Small (1-100 Members) Per 100 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 297 Church - Large (> 100 Members) Per 100 members $ 25.51 $ 26.02 $ 26.54 $ 27.07 $ 27.61 301 Photo Developer / Printer $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 311 Laboratory - 10 employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 331 Garage Repair $ for every 10 employees $ 12.21 $ 12.45 $ 12.70 $ 12.96 $ 13.21 341 Paint Shop - 10 employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 353 Dry Cleaner Location/Each Business $ 42.07 $ 42.92 $ 43.77 $ 44.65 $ 45.54 354 Laundromat Each Washing Machine $ 11.12 $ 11.34 $ 11.57 $ 11.80 $ 12.03 Sewer Rate per EDU per Month
Sewer Rate Schedule
City Code Description (Special Users) * Units FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 351 Industrial Laundry Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 352 Commercial Laundry Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 366 Car Wash Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 367 Truck/ Bus Wash Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 401 Special User Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 403 Chemical Pesticides Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 405 Water Softener Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 406 Food Processor Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 407 Rec/Sports Facility Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 408 Inedible Renderer Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 410 Groundwater Discharger Based on actual flow GPD x sewer rate for applicable year $ 0.109 $ 0.111 $ 0.113 $ 0.116 $ 0.118 * There may be other special user categories in the future as designated by M1W which would also be charged at the sewer rate shown in the table above.

Sewer Rate per Month
Sewer Rate Schedule: Special Users
Notice of Public Hearing to Consider Proposed Sanitary Sewer Rate Adoption
Tuesday, September 23, 2025, at 4:00 p.m.

City Hall Rotunda at 200 Lincoln Ave, Salinas, CA 93901 In person or on Zoom.

NOTICE TO PROPERTY OWNERS AND RATEPAYERS
The City of Salinas (City) hereby notifies property owners and ratepayers of the proposed adjustments to sewer rates, and their right to object, protest, or provide comments to the City.

This Notice is provided in accordance with California Constitution Article XIII D, Section 6 (Proposition 218). The Salinas City Council will consider the proposed rate adjustment at a Public Hearing at 4:00 p.m., Tuesday, September 23, 2025, in the City Hall Rotunda at 200 Lincoln Ave, Salinas, CA 93901.

Hearing impaired or TTY/TDD text telephone users may contact the City by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers’ CRS telephone number.

All those interested are invited to appear at the time and place of the Public Hearing on September 23, 2025, to give oral or written comments regarding the proposed rate adjustments. The City Council will hear and consider oral testimony and written materials submitted regarding proposed rate adjustments at the Public Hearing. The City Council has the authority to adjust the proposed sewer rate changes in response to oral testimony and written materials submitted for consideration, provided any adjustments cannot increase rates beyond those proposed in this Notice.

If adopted by City Council, the proposed sewer rates described in this Notice will become effective on October 1, 2025, with annual adjustments each July 1st through 2029. The City will provide notice of any authorized annual adjustment to rates, not less than 30 days before the effective date of the adjustment, per Government Code Section 53756.

MaintainingSalinas’ SanitarySewerSystem
The City of Salinas must continually invest in its sanitary sewer system to maintain safe and reliable service. The City’s source of revenue to cover the cost of providing those sewer services is through sewer rates, with every dollar from those rates going toward the operation, maintenance, repair, and improvement of the sewer system. Periodic evaluations and adjustments to the rates are necessary to address infrastructure needs, inflation and regulatory mandates. Responsible financial planning and appropriate funding are essential to maintaining and improving our sewer system.

The City’s Maintenance Division maintains approximately 280 miles of gravity pipelines in the sanitary sewer collection system and 11 sanitary sewer lift stations. The sewer system plays a vital role in safeguarding water quality and public health. The sewer system consists of underground pipes, manholes, lift stations, and other infrastructure that transport sewage from homes, businesses, and industries to the regional wastewater treatment plant, where it is treated and safely released back into the environment.

R E V E N U E S A RE R E Q U I R E D TO M A I N T A I N A ND R E P A I R T HE

S A N I T A R Y S E W E R S Y S T E M
To ensure adequate revenue for maintaining, operating and improving the sanitary sewer system, the City commissioned a Rate Study. The Rate Study documents support for the proposed rates for each customer category, the basis upon which the rates were calculated, and the reasons for the rates to cover the cost of providing sewer services. The study estimates a total of $114.8 million is required to fund capital improvements. Funds will be provided through increased sewer rates and bonds.

The Rate Study is available online at https://www.cityofsalinas.org/YourGovernment/Departments/Public-Works/Sanitary-Rate-Study-2025.

PROPOSED SEWER RATE INCREASES
The City is proposing five years of sewer rate increases, as set forth in Table 1 and Table 2:

Table 1: Proposed Sewer Rate per EDU per Month
City
Code Description Units
Sewer Rate per EDU per Month
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
001 Business/Government Location/Each Business ($ for
every 10 employees) $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 102 Residence Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 105 Multi Residence - Apts Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 107 Condominium Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 109 Retirement Complex Each Living Unit $ 16.35 $ 16.68 $ 17.01 $ 17.35 $ 17.70 221 Hotel/Motel Each Room $ 7.19 $ 7.34 $ 7.48 $ 7.63 $ 7.79 222 Bed & Breakfast Each Room $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 231 Supermarket Location $ 69.54 $ 70.93 $ 72.35 $ 73.80 $ 75.27 241 Medical Each Licensed Physician $ 17.00 $ 17.34 $ 17.69 $ 18.04 $ 18.41 242 Dental Each Licensed Dentist $ 23.44 $ 23.90 $ 24.38 $ 24.87 $ 25.37 243 Rest Home/ Convalescent Each Bed of Licensed Capacity $ 4.69 $ 4.78 $ 4.88 $ 4.97 $ 5.07 244 Surgery Center/ General
Hospital Each Bed of Licensed Capacity $ 27.90 $ 28.46 $ 29.03 $ 29.61 $ 30.20 245 Animal Hospital Location/Each Licensed
Business $ 31.83 $ 32.46 $ 33.11 $ 33.78 $ 34.45
261 Restaurant - 1 Meal Each Restaurant Seat $ 0.65 $ 0.67 $ 0.68 $ 0.69 $ 0.71 262 Restaurant - 2 Meals Each Restaurant Seat $ 0.98 $ 1.00 $ 1.02 $ 1.04 $ 1.06 263 Restaurant - 3 Meals Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 264 Restaurant w/ Bar Each Restaurant Seat $ 1.85 $ 1.89 $ 1.93 $ 1.97 $ 2.01 265 Bar Location/Each Business $ 27.69 $ 28.24 $ 28.80 $ 29.38 $ 29.97 266 Night Club Location/Each Business $ 82.84 $ 84.50 $ 86.19 $ 87.91 $ 89.67 267 Take-Out Small 1 Cash Register or Checkout
Line $ 30.85 $ 31.46 $ 32.09 $ 32.74 $ 33.39
268 Take-Out Medium 2 or 3 Cash Registers or
Checkout Lines $ 75.97 $ 77.49 $ 79.04 $ 80.62 $ 82.24
269 Take-Out Large 4 or More Cash Registers or
Checkout Lines
$
138.43
$
141.20
$
144.02
$
146.90
$
149.84
270 Bakery Location/Each Business $ 25.07 $ 25.57 $ 26.08 $ 26.60 $ 27.14 281 Theater Per Screen @ Each Location $ 41.09 $ 41.91 $ 42.75 $ 43.61 $ 44.48 City
Code Description Units
Sewer Rate per EDU per Month
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
282 Bowling Center Location/Each Business $
124.91
$
127.41
$
129.96
$
132.56
$
135.21
283 Gym - 500 Members $ for every 500 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 292 School - Pre Grade 6 School Population $ 0.22 $ 0.22 $ 0.23 $ 0.23 $ 0.24 293 School - Grade 7 -College School Population $ 0.44 $ 0.44 $ 0.45 $ 0.46 $ 0.47 294 School - Boarding School Population $ 4.36 $ 4.45 $ 4.54 $ 4.63 $ 4.72 295 Instructional Facility Location/Each Business $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 296 Church - Small (1-100
Members) Per 100 members $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 297 Church - Large (> 100
Members) Per 100 members $ 25.51 $ 26.02 $ 26.54 $ 27.07 $ 27.61 301 Photo Developer / Printer $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 311 Laboratory - 10
employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 331 Garage Repair $ for every 10 employees $ 12.21 $ 12.45 $ 12.70 $ 12.96 $ 13.21 341 Paint Shop – 10
employees $ for every 10 employees $ 12.75 $ 13.01 $ 13.27 $ 13.53 $ 13.80 353 Dry Cleaner Location/Each Business $ 42.07 $ 42.92 $ 43.77 $ 44.65 $ 45.54 354 Laundromat Each Washing Machine $ 11.12 $ 11.34 $ 11.57 $ 11.80 $ 12.03 Table 2: Proposed Sewer Rate per EDU per Month for Special Users City
Code Description Units
Sewer Rate per EDU per Month
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
351 Industrial Laundry Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
352 Commercial Laundry Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
366 Car Wash Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
367 Truck/Bus Was Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
401 Special User Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
403 Chemical Pesticides Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
405 Water Softener Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
406 Food Processor Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
407 Rec/Sports Facility Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
408 Inedible Renderer Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118
410 Groundwater Discharger Based on Flow (GPD x Sewer
Rate) $0.109 $0.111 $0.113 $0.116 $0.118

SUBMITTING A PROTEST OR AN OBJECTION
A property owner has a right to submit to the City a written protest or a written objection to the proposed adjustment to sewer rates based on laws that are commonly referred to as “Proposition 218” (including California Constitution Article XIII D, Section 6; implementing legislation at Government Code sections 53750 through 53759.2, and judicial decisions interpreting those laws). The proposed increases in sewer rates are considered fees for “property-related services” under those laws.

HOW TO SUBMIT A WRITTEN PROTEST
Any property owner or rate-paying tenant has the right to protest the proposed sewer rates. The protest must be in writing, it must include the property service address and/or the assessor’s parcel number, the eligible individual’s name (property owner or tenant), a statement to the effect of “I protest the proposed sewer rate adjustments,” and an original signature. Written protests must only be submitted to the City by mail or personal delivery to: City of Salinas, City Clerk, 200 Lincoln Ave. Salinas, CA 93901. Telephone, e-mail, and fax protests will not be accepted.

All protests must be received by the City Council in writing before the conclusion of the Public Hearing. Any protest received after the conclusion of the Public Hearing will not be accepted or considered. Any oral comments will not be counted as a protest. Only one written protest per affected property will be counted.

At the conclusion of the Public Hearing, the City Council will consider adopting the proposed rates and charges only if the City does not receive a “majority protest.” There is a “majority protest” if the City receives timely written protests from property owners or ratepayers representing a majority (50% +1) of the properties served by the City. If there is a majority protest, the City is prohibited by law from approving the updated sewer rates at that time.

EXHAUSTION OF ADMINISTRATIVE REMEDIES – HOW TO SUBMIT A WRITTEN

OBJECTION
Any property owner or rate-paying tenant has the right to submit a written objection to the proposed sewer rates. In order for a written objection to be timely and effective, it must comply with all of the following requirements:
 Written objections must be in writing and mailed or hand delivered to the City at:

City of Salinas, City Clerk, 200 Lincoln Ave, Salinas CA, 93901.  The City Clerk must receive the written objections by no later than September 23, 2025, at 4:00 p.m.
 Written objections must include the following information:
o Objectors name, parcel number and/or service address. o A statement that the communication constitutes a written objection to the City’s proposed sewer rates.
o A description of the substance of the objection, with sufficient specificity to allow the City to respond in writing. The objection must state the specific grounds for concerns with the proposed sewer rates, and why they do not comply with Proposition 218 or other relevant law. The objection should include the desired resolution or outcome.

A statement that the proposed sewer rates violate Proposition 218 without an explanation as to the basis of the claim are not sufficient to constitute a timely written objection.

At the Public Hearing, after considering all timely written objections and written responses prepared by City staff, the City Council will determine whether clarifications or further review or reduction or abandonment of the proposed sewer rates is warranted.

Limitations for Challenging Proposed Rates
You are hereby notified that, in order to file a judicial action or legal proceeding to challenge the proposed rates described in this Notice, you must file a timely written legal objection, and you must commence the action or proceeding within 120 days of the City’s approval of the rates.

Failure to submit a timely written legal objection bars any right to challenge the proposed rates through a judicial action or legal proceeding. (Government Code Section 53759.1(b).) There is a 120-day statute of limitations for judicially challenging the rates set forth in this Notice that runs from the date of the City action to approve the rates, and any legal action is limited to the issues raised in a timely legal objection. (Government Code Section 53759.) FOR MORE I N F O R M AT I O N :

Visit: https://www.cityofsalinas.org/Your-Government/Departments/Public-Works/Sanitary-RateStudy-2024; or call (831) 758-7241; or email [email protected].

Monterey One Water
2021
Wastewater Treatment Rate Update
to 2017
Comprehensive Rate & Fee Study
Background
During Fiscal Year 2016-17, Monterey One Water (“M1W”), which was then known as the Monterey Regional Water Pollution Control Agency, engaged Bartel Wells Associates (“BWA”) to undertake a comprehensive analysis of M1W’s revenues and budget to make recommendations regarding M1W’s wastewater treatment rates and all of M1W’s other rates and charges. As part of its work, BWA delivered to M1W a detailed report entitled “Monterey Regional Water Pollution Control Agency, Comprehensive Rate & Fee Study” (the “BWA Study”).

In 2017, M1W adopted a three-year schedule (FY 2017-18 through 2019-20) of wastewater treatment rates that was based on the analysis and recommendations in the BWA Study. For FY 2020-21, which began during the height of the COVID-19 pandemic, rather than proposing a multi-year rate schedule, M1W adopted a one-time rate increase that was based on BWA’s work.

The purpose of this Update is to recommend a five-year schedule of wastewater treatment rates proposed to begin July 1, 2021, that will meet M1W’s current projections of the expenses necessary to provide wastewater treatment services, as well as build operating and capital reserves that meet the reserve policies adopted by the M1W Board. Because much of M1W’s infrastructure is aging, M1W has adopted a 10-year Capital Improvement Plan that is designed to replace and improve much of M1W’s infrastructure so that M1W can continue to provide reliable, high-quality, and environmentally sensitive wastewater treatment services to its existing customers. M1W intends to undertake its capital improvement projects on a pay-as-you-go basis, and make at most limited use of the new debt. Therefore, the, the expense budgets described in this Update for each year include debt service payable during that year on outstanding debt, as well as current expenses for capital improvement projects.

Methodology
This Update was prepared by M1W staff.

The BWA Study, which is not even five years old, contained BWA’s expert analysis regarding the proportional burden different types of users and system use put on the M1W system. That analysis and the resulting calculations are unlikely to change significantly over a few years, and it would be unnecessary and prohibitively expensive to redo this analysis every time M1W considers rate increases.

Therefore, this update limits itself to setting forth budget projections for each of the next five fiscal years, determining the total wastewater treatment rate revenue necessary each year to cover the costs of providing wastewater treatment services, determining the percentage increase in revenue between prior year wastewater treatment rate revenue and the revenue requirement for that year, and then increasing, each wastewater rates by that percentage. In that way, the proportionality of the rates for different users types is maintained, and the rates will continue to meet the requirements of Article XIII D, Section 6(b) of the California Constitution. This update incorporates the BWA Study.

M1W’s wastewater treatment rates fund the costs of the services used by the customers who are charged these rates. The rates do not fund costs associated with the Castroville Seawater Intrusion Project or the Pure Water Monterey Groundwater Replenishment Project, which are projects that produce usable water that is sold to customers.

Budget
The following is a cash flow and expenses analysis that projects the wastewater treatment rates necessary to fund wastewater treatment expenses over the next five fiscal years:

Increase in Revenue Requirement
The following shows the percentage increase in wastewater treatment rate revenue that is necessary to meet the expenses each year of providing wastewater treatment services to customers who are subject to wastewater treatment rates:

Projected Rate Revenue Increases
Fiscal Year 21-22 22-23 23-24 25-26 26-27
Projected Rate Increases 46.84% 19.69% 9.62% 7.72% 6.87% Proposed Rates
The table on the next page shows the rate schedule for the wastewater treatment rate that is proposed for each of the next five fiscal years. Each year’s proposed rates are calculated by increasing the prior year’s rates by the percentage shown in the revenue requirement table.

Wastewater Fund Five Year Projections
Projected Projected Projected Projected Projected
with with with with with
Proposed Proposed Proposed Proposed Proposed
Actual Projected Increase Increase Increase Increase Increase 19-20 20-21 21-22 22-23 23-24 24-25 25-26
Wastewater Treatment Charges 28,952,230 31,786,190 42,626,771 50,943,683 55,661,367 59,811,390 63,788,768 Military Wastewater Charges 380,778 383,155 383,155 383,155 383,155 383,155 383,155 Other Fees 1,108,872 1,049,438 1,081,000 1,113,000 1,146,000 1,180,000 1,215,000 Other Revenues 4,110,229 4,812,632 2,399,126 2,838,000 2,838,000 2,838,000 2,838,000 Total Projected Wastewater Revenues 34,552,137 38,031,443 46,490,100 55,277,888 60,028,574 64,212,600 68,224,981 Prefunding PERS Obligation - - 400,000 400,000 400,000 400,000 400,000 Administration 6,041,569 6,410,850 7,521,518 8,311,277 9,183,961 10,148,277 11,213,846 Plant Operations 17,308,734 20,955,111 23,908,716 26,735,131 29,762,320 32,887,364 36,340,537 Debt Service 2,095,514 2,129,507 2,129,507 2,129,507 2,129,507 2,129,507 2,129,507 10 Year CIP 5,706,755 4,780,000 4,065,000 14,185,000 16,280,000 13,551,000 14,530,000 Total Projected Expenses 31,152,572 34,275,468 38,024,741 51,760,915 57,755,788 59,116,148 64,613,890 Total Projected Additions to Reserves 3,399,565 3,755,975 8,465,359 3,516,973 2,272,786 5,096,452 3,611,091 Ending Reserves 10,307,144 14,063,119 22,528,478 26,045,451 28,318,237 33,414,689 37,025,780 Operating Reserves 6,307,144 8,063,119 9,361,778 12,878,751 15,151,537 20,247,989 23,859,080 % of Debt / Operating Budget 25% 27% 28% 35% 37% 45% 50% Capital Reserves 4,000,000 6,000,000 13,166,700 13,166,700 13,166,700 13,166,700 13,166,700 % of Ten Year CIP 3% 5% 10% 10% 10% 10% 10%
Monterey One Water
Adopted Sewer Service Charges and Rates - Appendix A
Code Category
Avg. Flow
(gpd)
BOD
(mg/l)
SS
(mg/l)
Monthly Rate
FY 19-20
Proposed
Monthly Rate
Effective 8/6/21
Proposed
Monthly Rate
Effective 7/1/22
Proposed
Monthly Rate
Effective 7/1/23
Proposed
Monthly Rate
Effective 7/1/24
Proposed
Monthly Rate
Effective 7/1/25 Billing Unit
245 Animal Hospital 292 250 100 40.70 53.10 63.10 73.10 84.65 Location/each business 89.75 341-346 Auto/Paint/Body Shops and Stores 117 150 150 15.45 20.15 23.95 27.75 32.15 Every 10 employees 34.10 270 Bakery 230 1000 600 63.35 82.60 98.10 113.60 131.55 Location / each business 139.45 265 Bar 254 200 200 36.20 47.20 56.05 64.95 75.25 Location / each business 79.80 222 Bed & Breakfast Inn - Per Unit 43 310 120 6.35 8.30 9.90 11.50 13.35 Each room 14.15 282 Bowling Center 1146 150 150 151.15 197.05 234.00 270.95 313.80 Location / each business 332.60 211 Business - Vacant 117 150 150 9.25 12.10 14.40 16.70 19.35 Location / each business 20.55 001-099 Business/Government 117 150 150 15.45 20.15 23.95 27.75 32.15 Every 10 employees 34.10 296 Church 1-100 Members 117 150 150 15.45 20.15 23.95 27.75 32.15 Location / each business 34.10 297 Church Over 100 Members 117 150 150 30.90 40.30 47.90 55.50 64.30 Location / each business 68.20 205 Demolished 117 150 150 - - - - - Each living unit - 242 Dental Office (Per Dentist) 215 130 80 26.50 34.55 41.05 47.55 55.10 Each 58.45 licensed dentist 353 Dry Cleaner 386 150 150 50.90 66.35 78.80 91.25 105.70 Location / each business 112.05 244 General Hospital - (per Bed) 256 250 100 35.70 46.55 55.30 64.05 74.20 Each 78.65 bed of licensed capacity 283-289 Gym 117 150 150 15.45 20.15 23.95 27.75 32.15 Every 500 members 34.10 295 Instructional Facility (per student) 117 150 150 15.45 20.15 23.95 27.75 32.15 Each 34.10 business 311-312 Laboratory 117 150 150 15.45 20.15 23.95 27.75 32.15 Every 10 employees 34.10 354 Laundromat (per washing machine) 102 150 110 13.05 17.05 20.25 23.45 27.20 Each 28.85 washing machine 241 Medical Office - (per physician) 156 130 80 19.20 25.05 29.75 34.45 39.90 Each 42.30 Licensed Physician 416 Mobile Washers (Annual) 34 20 150 40.70 53.10 63.10 73.10 84.65 Each business 89.75 290 Mortuary 310 800 800 83.60 109.00 129.45 149.90 173.60 Location / each business 184.00 221 Motel / Hotel - (per room) 66 310 120 9.80 12.80 15.20 17.60 20.40 Each 21.65 room 266 Nightclub 760 200 200 108.30 141.20 167.70 194.20 224.90 Location / each business 238.40 301 Photo Developer 117 150 150 15.45 20.15 23.95 27.75 32.15 Location / each business 34.10 321-326 Printer 117 150 150 15.45 20.15 23.95 27.75 32.15 Every 10 employees 34.10 101,106 Residential - Vacant 117 150 150 14.75 19.25 22.90 26.55 30.75 Each living unit 32.60 102,105,107,109 Residential/Apartments/Condos (per unit) 150 300 300 24.55 32.00 38.00 44.00 50.95 Each 54.00 living unit 243 Rest Home/Convalescent - (per bed) 43 250 100 6.00 7.85 9.35 10.85 12.60 Each 13.40 bed of licensed capacity 261 Restaurant (1 meal/day per seat) 6 1000 600 1.65 2.15 2.60 3.05 3.55 Each 3.80 restaurant seat 262 Restaurant (2 meals/day per seat) 9 1000 600 2.45 3.20 3.80 4.40 5.10 Each 5.45 restaurant seat 263 Restaurant (3 meals/day per seat) 17 1000 600 4.65 6.10 7.25 8.40 9.75 Each 10.35 restaurant seat 264 Restaurant with Bar (per seat) 17 1000 600 4.65 6.10 7.25 8.40 9.75 Each 10.35 restaurant seat 107,109 Retirement Community 50 300 300 24.55 32.00 38.00 44.00 50.95 Each living unit 54.00 291 School (Minimum) 117 150 150 15.45 20.15 23.95 27.75 32.15 Each business 34.10 292 School (Grades 0-6) (per student) 2 130 100 0.25 0.33 0.40 0.47 0.55 Sch 0.59 ool Population 293 School (Grades 7-College) (per student) 4 130 100 0.50 0.66 0.79 0.92 1.07 Sch 1.14 ool Population 294 School (Boarding) (per student) 40 233 165 5.70 7.45 8.85 10.25 11.90 Sch 12.65 ool Population 331-332 Service Station/Garage (per 10 employees) 112 180 280 16.50 21.55 25.60 29.65 34.35 Every 10 empl 36.40 oyees 231 Supermarkets 638 800 800 172.15 224.40 266.50 308.60 357.40 Location 378.80 267 Takeout Food - Small 283 500 300 53.10 69.25 82.25 95.25 110.30 1 cash register / checkout line 116.90 268 Takeout Food – Medium 697 500 300 130.85 170.60 202.60 234.60 271.70 2-3 cash registers / checkout lines 288.00 269 Takeout Food – Large 1270 500 300 238.40 310.75 369.05 427.35 494.90 4 or more cash registers / checkout lines 524.55 281 Theater (per screen) 377 150 150 49.75 64.85 77.05 89.25 103.35 Per screen 109.55 at each location Special User Charge Formula Accounts
351 Laundry: Industrial Usage * * Based on "Special User Charge Formula" * 352 Laundry: Commercial Usage 450 240 Based on "Special User Charge Formula" * 366 Car Wash Usage 20 150 Based on "Special User Charge Formula" * 361 Major Hotel Usage 500 600 Based on "Special User Charge Formula" * 367 Truck Wash Usage 180 270 Based on "Special User Charge Formula" * 401 Misc. Special User Usage * * Based on "Special User Charge Formula" * 402 Plastics Usage * * Based on "Special User Charge Formula" * 403 Chemicals Usage * * Based on "Special User Charge Formula" * 404 Etching Usage * * Based on "Special User Charge Formula" * 405 Water Softener Usage * * Based on "Special User Charge Formula" * 406 Food Processing Usage * * Based on "Special User Charge Formula" * 407 Rec/Sports Center Usage 150 150 Based on "Special User Charge Formula" * 408 Inedible Render Usage * * Based on "Special User Charge Formula" * 409 Electronics Usage * * Based on "Special User Charge Formula" * 410 Groundwater Usage * * Based on "Special User Charge Formula" * Note: The above rates do not include additional collection/conveyance fees assessed by the member entities * These are set through samples taken by Source Control.

Wastewater Strength
Special User Formulas
In addition, the special charge formulas for the special users mentioned on the schedule of fees for each of the five years are as follows:

PROPOSED SPECIAL USER FORMULA: Effective August 5, 2021 K = (1,564,293.45 x V) + (1877.05 x V x B) + (1442.65 x V x S) PROPOSED SPECIAL USER FORMULA: Effective July 1, 2022
K = (1,857,598.47x V) + (2,229.00 x V x B) + (1,713.15 x V x S) PROPOSED SPECIAL USER FORMULA: Effective July 1, 2023
K = (2,150,913.27 x V) + (2,580.96 x V x B) + (1983.66 x V x S) PROPOSED SPECIAL USER FORMULA: Effective July 1, 2024
K = (2,490,757.57 x V) + (2,988.75 x V x B) + (2297.08 x V x S) PROPOSED SPECIAL USER FORMULA: Effective July 1, 2025
K = (2,639,953,95 x V) + (3,167.78 x V x B) + (2,434.68 x V x S) Whereas for all formulas:

K = Annual User Charge for Each User
V = Average Daily Sewage Flow in Million Gallons per Day (MGD) B = Average Sewage BOD Concentration in mg/l
S = Average Sewage SS Concentration in mg/l
May 30, 2017
Pollution Control Agency
Monterey Regional Water
Comprehensive Rate & Fee Study
May 30, 2017
Monterey Regional Water Pollution Control Agency
5 Harris Court, Building D
Monterey, CA 93940
Attn:   Tori Hannah, Chief Financial Officer
Re:  Comprehensive Rate & Fee Study
Bartle Wells Associates is pleased to submit the attached Comprehensive Rate & Fee Study.

The study develops long‐term financial projections, calculates wastewater rates designed to fund operating and capital needs over the next three years, and includes updates to MRWPCA’s Capacity Charges and Additional Fees and Charges.  Recommended rates, fees and charges were developed with substantial input from MRWPCA and are designed to reflect the cost of providing service, comply with legal requirements, and be fair and equitable to all customers.

I enjoyed working with MRWPCA on this assignment and appreciate the ongoing collaboration, assistance, and input received throughout the project.  Please contact me anytime if you have questions about the recommendations presented in this report or any related issues.

Sincerely,
BARTLE WELLS ASSOCIATES
Alex Handlers, CIPMA
Principal/Vice‐President
1889 Alcatraz Avenue
Berkeley, CA 94703
Tel: 510 653 3399
www.bartlewells.com
BARTLE WELLS ASSOCIATES   MRWPCA Comprehensive Rate & Fee Study TABLE OF CONTENTS
1 Background & Summary of Recommendation ................................................ 1

1.1 Background ...................................................................................................................... 1

1.2 Wastewater System Overview ......................................................................................... 1

1.3 Study Objectives .............................................................................................................. 2

1.4 Process ............................................................................................................................. 3

1.5 Summary of Recommendations ...................................................................................... 3 2 Wastewater Financial Plan & Rate Study ........................................................ 7

2.1 Historical Rates ................................................................................................................ 7

2.2 Sewer Rate Surveys ........................................................................................................ 11

2.3 Constitutional Rate Requirements................................................................................. 13

2.4 Rate‐Setting Methodology ............................................................................................. 13

2.5 Sewer Financial Overview & Financial Challenges ......................................................... 15

2.6 Financial Challenges / Key Drivers of Rate Increases .................................................... 15

2.6.1 Capital Improvements / Aging Infrastructure ..................................................... 15

2.6.2 Increased Operating Costs .................................................................................. 16

2.7 10‐Year Cash Flow Projections ....................................................................................... 17

2.8 Debt Service Coverage Projections ................................................................................ 19

2.9 Rate Revenue Increases ................................................................................................. 21

2.10 Sewer Rate Increase Alternatives .................................................................................. 21

2.11 Cost Recovery Allocations .............................................................................................. 21

2.12 Unit Cost Derivation ....................................................................................................... 22

2.13 Proposed Wastewater Treatment Rates ....................................................................... 23

2.14 Rate Impacts .................................................................................................................. 25 3 Capacity Charge Update ............................................................................... 27

3.1 Capacity Charges ............................................................................................................ 27

3.2 Capacity Charge Surveys ................................................................................................ 28

3.3 Government Code .......................................................................................................... 30

3.4 Fee Methodology: Average Cost Approach ................................................................... 30

3.5 Cost Recovery Allocation ............................................................................................... 31

3.6 Unit Rate Derivation & Capacity Charge per EDU ......................................................... 33

3.7 Capacity Charge Ordinance:  Purpose of Charge ........................................................... 36

3.8 Capacity Charge Credits for Redevelopment ................................................................. 36

3.9 Future Fee Adjustments & Updates .............................................................................. 36 4 Additional Fee & Charge Update .................................................................. 37

4.1 Additional Fees & Charges ............................................................................................. 37

4.2 Legal Requirements ....................................................................................................... 37

4.3 Fee Update Methodology .............................................................................................. 38

4.4 Updated Fee Recommendations ................................................................................... 39

4.5 Future Fee Adjustments & Updates .............................................................................. 39 BARTLE WELLS ASSOCIATES   MRWPCA Comprehensive Rate & Fee Study LIST OF TABLES
Table 1 – Accounts & Monthly Rates ............................................................................................ 10 Table 2 ‐ 10‐Year Cash Flow Projections ....................................................................................... 18 Table 3 ‐ 10‐Year Debt Service Coverage Projections ................................................................... 20 Table 4 – Projected Rate Revenue Increases ................................................................................ 21 Table 5 – Cost Allocations ............................................................................................................. 22 Table 6 – Projected Rate Revenue Increases ................................................................................ 22 Table 7 – Unit Rates for Wastewater Flow & Strength ................................................................. 23 Table 8 – Proposed Wastewater Treatment Rates ....................................................................... 24 Table 9 – Residential Rate Impact................................................................................................. 26 Table 10 – Costs Allocation of Facilities & Assets ......................................................................... 32 Table 11 – Capacity Charge Components ..................................................................................... 33 Table 12 – Capacity Charge per EDU ............................................................................................ 34 Table 13 – Proposed Capacity Charges ......................................................................................... 35 Table 14 – Updated Fees & Charges ............................................................................................. 40 LIST OF FIGURES
Figure 1 – Historical Monthly Residential Charges ......................................................................... 7 Figure 2 – Historical Monthly Residential Charges vs. Inflation ..................................................... 8 Figure 3 – Regional Sewer Rate Survey......................................................................................... 11 Figure 4 – Benchmark Agency Sewer Rate Survey ....................................................................... 12 Figure 5 –Projected Revenues & Expenses ................................................................................... 19 Figure 6 – Historical & Projected Sewer Charges ......................................................................... 25 Figure 7 – Historical Capacity Charges per EDU............................................................................ 27 Figure 8 – Regional Sewer Capacity Charge Survey ...................................................................... 28 Figure 9 –Sewer Capacity Charge Survey of Benchmark Agencies ............................................... 29

APPENDICES
Appendix A – MRWPCA Financial Plan & Rate Study Tables
Appendix B – Capacity Charge Update Tables
Appendix C – Interruptible Rate Update Tables
Appendix D – Additional Fee & Charge Updates – Tables & Worksheets BARTLE WELLS ASSOCIATES   1
MRWPCA Comprehensive Rate & Fee Study
1 BACKGROUND & SUMMARY OF RECOMMENDATION

1.1 Background
The  Monterey  Regional  Water  Pollution
Control Agency (MRWPCA or Agency) is a
Joint  Powers  Authority  that  provides
wastewater  conveyance,  treatment  and
effluent disposal services to a population
of  roughly  250,000  and  businesses  in
northern  Monterey  County.    Member
agencies include  the Cities of Monterey,
Pacific Grove, Seaside, Sand City, Salinas,
Del  Rey  Oaks,  and  the  Marina  Coast
Water  District,  Fort  Ord  Military
Reservation,  Castroville  Community
Services  District,  Moss  Landing  County
Sanitation District, Boronda County Sanitation District, and the County of Monterey.  MRWPCA was originally formed in 1972 and expanded in subsequent years as additional agencies joined.  MRWPCA is  governed  by  an  11‐member  Board  of  Directors  with  one  Director  representing  each  member agency.

1.2 Wastewater System Overview
MRWPCA  owns  and  operates  a  regional  wastewater  treatment  plant  with  treatment  capacity  of approximately  29.6 million gallons  per  day  (average  dry weather  flow), a  60‐inch  diameter  outfall pipeline extending 2 miles into the Monterey Bay, 25 wastewater pump stations, 35 pressure‐vacuum stations, and approximately 30 miles of pipelines that convey wastewater from each of the member agencies to the regional treatment plant, and water recycling facilities.  Each of the agencies operates its own local wastewater collection system.

MRWPCA’s aging wastewater conveyance and treatment facilities are in need of a substantial amount of  capital  improvements  to  address  current  deficiencies  and  rehabilitate  and  replace  aging infrastructure.  A 10‐year capital improvement program developed by  the MRWPCA’s Engineering Services Department identifies over $92 million of capital improvements with future funding needs averaging approximately $10 million per year.  MRWPCA is currently working with an engineering consulting firm on a comprehensive evaluation of its wastewater conveyance system to identify and prioritize  capital  improvements,  and  plans  on  subsequently  conducting  a  similar  analysis  for  the wastewater  treatment  plant.    These  studies  may  identify  additional  infrastructure  improvement needs.

BARTLE WELLS ASSOCIATES 2
MRWPCA Comprehensive Rate & Fee Study
MRWPCA is a leader in water recycling.  MRWPCA participates in a partnership with Monterey County Water Resources Agency to provide recycled water  for agricultural purposes and to help minimize groundwater  overdraft  and  seawater  intrusion  into  underground  aquifers.    Roughly  60%  of MRWPCA’s treated wastewater effluent is currently recycled each year.  Additionally, MRWPCA is in the process of moving forward with Pure Water Monterey, an advanced water recycling project being developed  in  partnership  with  the  Monterey  Peninsula  Water  Management  District  and  other regional agencies.  Pure Water Monterey will provide highly‐treated recycled water for irrigation and groundwater replenishment to augment regional water supplies and provide a sustainable solution for  the  region’s  water  supply  challenges.   With  Pure Water Monterey, MRWPCA  anticipates  that approaching 100% of its treated wastewater will be recycled for beneficial purposes.

1.3 Study Objectives
In 2016, MRWPCA retained Bartle Wells Associates (BWA) to develop a comprehensive rate and fee study.  Key goals and objectives of the study include:

Wastewater Financial Plan & Rate Study
 Develop a 10‐year financial plan to identify future revenue requirements, evaluate financial scenarios, and determine rate increases needed to fund MRWPCA’s operating and capital programs while maintaining long‐term financial stability.  Develop wastewater treatment rates that:
o Recover the costs of providing service,
o Are fair and equitable to all customer classes,
o Comply with the legal requirements of the California Constitution, Article 13D, Section 6 (established by Proposition 218) and other California law; o Provide adequate funding for projected capital improvement needs, o Maintain a prudent level of fund reserves.
 Aim for steady, gradual annual rate increases, to the extent possible, to help minimize the annual impact on customers and mitigate the need for larger, periodic rate spikes.

Capacity Charge Update
 Review current capacity charges and evaluate approaches for developing updated charges.  Develop updated capacity charges designed to:
o Recover the cost of wastewater system infrastructure and assets benefitting new development,
o Are consistent with industry standards and practices, and o Comply with Government Code 66013.

BARTLE WELLS ASSOCIATES 3
MRWPCA Comprehensive Rate & Fee Study
Additional Fee & Charge Update
 Review and update MRWPCA’s additional fees and charges to reflect the current cost of providing service for each type of fee or charge and comply with Proposition 26.  Work with MRWPCA to identify the staffing needs, time, and materials associated with each type of fee.  Evaluate overhead allocation alternatives, calculate billable rates for staff time including salary and benefits, and calculate appropriate levels of facility cost recovery when applicable.

This report summarizes key findings and recommendations.  Final recommendations were developed with substantial input from MRWPCA staff and input from the Budget/Personnel Committee (BPC) and Board of Directors.

1.4 Process
BWA worked closely with MRWPCA during development of the financial plan and rate study, capacity charge update, and fee update.  In addition to a number of meetings and phone conferences with staff, the process included a number of public meetings with the BPC and Board to review findings, discuss  draft  recommendations and alternatives, and  receive input  from  Board Members and  the community.  A schedule of public meetings is listed below:

1.5 Summary of Recommendations
The tables on the following pages show recommended rates, capacity charges, and additional fees and charges.  To keep future charges aligned with the costs of providing service, capacity charges can be adjusted annually by the change in the Engineering News‐Record (ENR) Construction Cost Index, a widely‐used measure of construction cost inflation; and Additional Fees & Charges can be adjusted annually by the Consumer Price Index (CPI).

Date  Meeting Purpose
January 13  BPC Meeting Study introduction; present preliminary findings January 30  Board Meeting Study introduction; present preliminary findings February 10  BPC Meeting Receive preliminary input on rates & finances February 27  Board Meeting Review draft financial & rate scenarios & receive input March 10  BPC Meeting Receive additional input on rates March 27  Board Meeting Present final rate recommendations April 7  BPC Meeting Review preliminary updates of capacity charges & interruptible rates April 24  Board Meeting Review draft recommendations for capacity charges & interruptible rates May 12  BPC Meeting Review preliminary update of additional fees & charges May 22  Board Meeting Review draft recommendations for update of additional fees & charges June 5  Board Meeting Hold Proposition 218 Public Hearing for proposed rate increases; Consider adoption of proposed rates, capacity charges, & fee updates BARTLE WELLS ASSOCIATES   4
MRWPCA Comprehensive Rate & Fee Study
Average Current
User Category Flow BOD SS Monthly July 1 July 1 July 1 Billing Unit (gpd) (mg/l) (mg/l) Rate 2017 2018 2019

RESIDENTIAL
B. 102/105
107/109 Residential 150 300 300 $15.85 $17.40 $19.15 $21.05 Each living unit

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 117 150 150 $10.75 $11.50 $12.35 $13.25 Location/each business C. 102 Transient Occupancy (Resid) 150 300 300 15.85 17.40 19.15 21.05 Each living unit D. 221 Hotel/Motel 66 310 120 6.70 7.20 7.80 8.40 Each room E. 222 Bed & Breakfast Inn 43 310 120 4.45 4.75 5.10 5.45 Each room F. 231 Supermarket 638 800 800 107.00 119.10 132.60 147.60 Location G. 241 Medical Office 156 130 80 13.75 14.60 15.50 16.45 Each licensed physician H. 242 Dental Office 215 130 80 18.80 20.00 21.30 22.70 Each licensed dentist I. 243 Rest Home/Convalescent 43 250 100 4.20 4.50 4.80 5.15 Each bed of licensed capacity J. 244 General Hospital 256 250 100 24.70 26.50 28.50 30.60 Each bed of licensed capacity K. 245 Animal Hospi tal 292 250 100 28.55 30.50 32.65 34.90 Location/each business L. 261 Restaurant–One Meal 6 1000 600 1.05 1.15 1.30 1.40 Each restaurant seat 262 Restaurant–Two Meals 9 1000 600 1.55 1.70 1.90 2.10 Each restaurant seat 263 Restaurant–Three Meals 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat M. 264 Restaurant w/Bar 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat N. 265 Bar 254 200 200 24.60 26.60 28.70 31.05 Location/each business O. 266 Nightclub 760 200 200 73.05 79.15 85.75 92.85 Location/each business P. 267 Takeout Food–Small 283 500 300 35.65 38.70 41.95 45.55 Location/each business 268 Takeout Food–Medium 697 500 300 87.20 94.85 103.15 112.20 Location/each business 269 Takeout Food–Large 1,270 500 300 159.00 172.90 188.00 204.40 Location/each business Q. 270 Bakery 230 1000 600 41.20 45.15 49.50 54.30 Location/each business R. 281 Theater 377 150 150 33.85 36.55 39.50 42.65 Per screen at each location S. 282 Bowling Center 1,146 150 150 103.00 111.20 120.05 129.60 Location/each business T. 290 Mortuary 310 800 800 52.25 58.05 64.55 71.70 Location/each business U. 291 School (Minimum) 117 150 150 10.75 11.50 12.35 13.25 Each business 292 School (Grades 0‐6) 2 130 100 0.13 0.15 0.18 0.21 School population 293 School (Grade 7‐College) 4 130 100 0.28 0.32 0.37 0.43 School population 294 Boarding School 40 233 165 3.25 3.75 4.30 4.90 School population V. 331 Service Station/Repair 112 180 280 11.20 12.10 13.10 14.15 Location/each business 332 Svc Station/Repair (11‐20) 112 180 280 11.20 12.10 13.10 14.15 Location/each business W. 353 Dry Cleaners 386 150 150 35.05 37.70 40.55 43.65 Location/each business X. 354 Laundromats 102 150 110 9.00 9.70 10.40 11.20 Each washing machine CC. 101 Vacant Residence ‐‐‐ ‐‐‐ ‐‐‐ 9.15 10.45 11.50 12.65 Each living unit 211 Vacant Business ‐‐‐ ‐‐‐ ‐‐‐ 7.90 6.90 7.40 7.95 Each location/each business 416 Mobile Washers (per year) 34 20 150 25.00 29.40 34.60 40.70 Each mobile washer per year SPECIAL USER CHARGE FORMULA ACCOUNTS
Y. 351 Laundry: Industrial Usage Sample Sample
352 Laundry: Commercial Usage 450 240
Z. 366 Car Wash Usage 20 150
AA. 361 Major Hotel Usage 500 600
BB. 367 Truck Wash Usage 180 270
407 Rec/Sports Center Usage 150 150
401‐410 Other Usage Sample Sample
SPECIAL USER CHARGE FORMULA RATES
Flow Charge $687,000 $786,093 $899,480 $1,029,221 $ per mgd BOD Charge 815 936 1,075 1,235 $ per mgd x BOD strength SS Charge  337 476 672 950 $ per mgd x SS strength
Fixed Charge 2.84 ‐‐‐  ‐‐‐  ‐‐‐
SPECIAL USER CHARGE FORMULA
Charge = (Flow Charge x V) + (BOD Charge x V x B) + (SS Charge x V x S) Where:  V = Average Daily Sewage Flow in Million Gallons per Day (mgd) B = Average Sewage Biological Oxygen Demand (BOD) Concentration in mg/l C = Average Sewage Suspended Solids (SS) Concentration in mg/l "Special User" means any establishment, which cannot be classi fied in any other category, based on individual flow and strength characteristics. The special user charge is determined based on applying the formula shown below.  Actual water usage is ordinarily the basis for the special user's average daily  flow.

Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Proposed MRWPCA Wastewater Treatment Rates
Wastewater Strength Monthly Rate per Unit Effective
BARTLE WELLS ASSOCIATES 5
MRWPCA Comprehensive Rate & Fee Study
EDUs Capacity
Customer Class Flow/Unit Flow BOD SS Strength Flow Factor x Charge gpd Factor1 mg/l mg/l Factor2 Strength Factor per Unit

RESIDENTIAL
102/105
107/109 Residential Each living unit 150 1.00 300 300 1.00 1.000 $3,389.13

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government Location/each business 117 0.78 150 150 0.79 0.613 2,076.75 D. 221 Hotel/Motel Each room 66 0.44 310 120 0.86 0.380 1,287.00 E. 222 Bed & Breakfast Inn Each room 43 0.29 310 120 0.86 0.247 838.50 F. 231 Supermarket Location 638 4.25 800 800 1.71 7.293 24,717.09 G. 241 Medical Office Each licensed physician 156 1.04 130 80 0.72 0.746 2,527.96 H. 242 Dental Office Each licensed dentist 215 1.43 130 80 0.72 1.028 3,484.05 I. 243 Rest Home/Convalescent Each bed of licensed capacity 43 0.29 250 100 0.81 0.232 786.11 J. 244 General Hospital Each bed of licensed capacity 256 1.71 250 100 0.81 1.381 4,680.12 K. 245 Animal Hospital Location/each business 292 1.95 250 100 0.81 1.575 5,338.26 L. 261 Restaurant–One Meal Each restaurant seat 6 0.04 1,000 600 1.68 0.067 228.04 262 Restaurant–Two Meals Each restaurant seat 9 0.06 1,000 600 1.68 0.101 342.06 263 Restaurant–Three Meals Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 M. 264 Restaurant w/Bar Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 N. 265 Bar Location/each business 254 1.69 200 200 0.86 1.451 4,918.64 O. 266 Nightclub Location/each business 760 5.07 200 200 0.86 4.342 14,717.20 P. 267 Takeout Food–Small Location/each business 283 1.89 500 300 1.13 2.126 7,204.09 268 Takeout Food–Medium Location/each business 697 4.65 500 300 1.13 5.235 17,742.92 269 Takeout Food–Large Location/each business 1,270 8.47 500 300 1.13 9.539 32,329.29 Q. 270 Bakery Location/each business 230 1.53 1,000 600 1.68 2.579 8,741.49 R. 281 Theater Per screen at each location 377 2.51 150 150 0.79 1.974 6,691.75 S. 282 Bowling Center Location/each business 1,146 7.64 150 150 0.79 6.002 20,341.50 T. 290 Mortuary Location/each business 310 2.07 800 800 1.71 3.544 12,009.87 U. 291 School (Minimum) Each business 117 0.78 150 150 0.79 0.613 2,076.75 292 School (0‐6) School population 2 0.01 130 100 0.73 0.010 33.13 293 School (7‐College) School population 4 0.03 130 100 0.73 0.020 66.26 294 Boarding School School population 40 0.27 233 165 0.85 0.227 768.30 V. 331 Service Station/Repair Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 332 Service Station/Repair (11‐20) Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 W. 353 Dry Cleaners Location/each business 386 2.57 150 150 0.79 2.022 6,851.50 X. 354 Laundromats Each washing machine 102 0.68 150 110 0.75 0.513 1,737.12 Mobile washers 34 0.23 20 150 0.70 0.159 540.25
SPECIAL USERS (Billed Individually)
Separate Billed Industrial/Commercial
Flow ($ per gpd) 1,935.73
BOD ($ per lb / year) 643.94
SS ($ per lb / year) 809.46
1 Flow Factor =  Wastewater Flow in gallons per day (gpd) / 150 2 Strength Factor =  0.5712  +  [0.1900 x BOD strength / 300]  +  [0.2388 x SS strength / 300] With BOD and SS strengths in milligrams per liter (mg/l) Proposed Capacity Charges
Wastewater Flow Wastewater Strength
BARTLE WELLS ASSOCIATES   6
MRWPCA Comprehensive Rate & Fee Study
Fee Description Current Fees Updated Fees
Interruptible Rates
Agricultural Wash Water  $203.83 / Acre foot $242.40  / Acre Foot Blanco Drain $76.34 / Acre foot $94.22  / Acre Foot
Reclamation Ditch  $94.02 / Acre foot $96.58  / Acre Foot Salinas Storm Water  $70.78 / Acre foot $91.26  / Acre Foot Lake El Estero $70.57 / Acre foot $90.88  / Acre Foot
Pond Water (Ag Wash & Stormwater) n/a $95.88  / Acre Foot Tembladero Slough n/a $112.63  / Acre Foot
Fee for Outside Services Cost of service Cost of service Salinas Pond
(User fees are assessed by the City of Salinas)
Cost of service Cost of service
Return Item Fee  $10 / $15 $27.40
+ bank return item fee (currently $17)
Lien Filing Fee  30 $30 per lien
Service Charge Billing Fee: Member Agencies $0.20 per account $0.44 per bill Service Charge Billing Ree: Monterey County $0.93 per account $1.23 per bill Lift Station Maintenance Cost of service Cost of service Industrial Discharge Permit Non‐Compliance Fee  Cost of service Cost of service Liquid Waste Discharge Fees
Liquid Waste (Septage) $0.04 / gallon $0.085 / gallon
Grease $0.11 / gallon $0.11 / gallon
Biocell $0.11 / gallon $0.07 / gallon
Special $0.11 / gallon $0.05 / gallon
Annual Source Control Permit & Inspection Fees Current Classes & Permit Fees ORIU Class A:  $25 $1,865
SIU Class C:  $600 $4,125
CIU $4,125
Annual Liquid Waste Hauler Permit Fee $100 $200
Liquid Waste Deposit $1,000 $1,000 minimum
With discretion to set a higher deposit, such as
for larger customers or accts with delinquencies
Brine (1)
Brine w/Chemicals $0.05 / gallon
All Other Brine Varies from $0.025 to $0.11 $0.035 / gallon Additional fees to the standard fees listed above may apply on a cost of service basis when additional services are provided, such as for dealing with issues, violations, and non‐compliance.
1 Some brine costs are based on an Agreement between MRWPCA and other entities.

Note:  Cost of service includes billable wages and benefits, overhead, materials, vehicle usage, mileage, lab fees, on‐call costs, and other costs directly or indirectly incurred for providing the service for which a fee is charged.

Standard fees and charges are shown above.  Different fees or charges may be levied on case‐by‐case basis to better reflect the actual cost for providing a service, as determined by MRWPCA.

Updated Additional Fees & Charges
BARTLE WELLS ASSOCIATES 7
MRWPCA Comprehensive Rate & Fee Study
2 WASTEWATER FINANCIAL PLAN & RATE STUDY

2.1 Historical Rates
MRWPCA has provided good financial stewardship by gradually raising sewer rates in 9 of the past 10 years to keep rates in line with escalating costs of providing service and maintain financial stability.

The following chart shows a long‐term history of monthly residential wastewater treatment charges.

MRWPCA did not adjust rates for over 10 years from 1992/93 to 2003/04 and subsequently began adopting small, gradual rate increases most years including each of the past 7 years.  Since 1992, rates have risen at an average rate of approximately 2.2%.  Since 2003/04, rates have risen by an average of approximately 4.2% per year.

Figure 1 – Historical Monthly Residential Charges
BARTLE WELLS ASSOCIATES   8
MRWPCA Comprehensive Rate & Fee Study
The  following  chart  compares MRWPCA’s  historical  residential  rates  to  two measures  of  inflation including  a)  the  Consumer  Price  Index  (CPI),  US  City  Average  for  Urban  Consumers,  and  b)  the Engineering  News‐Record  Construction  Cost  Index  (20‐Cities  Average),  a  widely‐used  measure  of construction cost inflation.  Cost inflation  for utility agencies  tends  to be higher  than CPI as utility agencies expenses are labor and capital intensive.

Figure 2 – Historical Monthly Residential Charges vs. Inflation

BARTLE WELLS ASSOCIATES   9
MRWPCA Comprehensive Rate & Fee Study
The table on the following page shows a breakdown of accounts by customer class along with rates from the past 3 years.  MRWPCA levies fixed monthly charges that vary by customer type.  Residential customers are billed per dwelling unit.  Charges for commercial and institutional customers vary by type of business, and major industrial customers are billed on an individual basis based on wastewater flow and strength.

MRWPCA bills most customers on a monthly basis for wastewater treatment services via a combined bill that also includes the local wastewater collection system charges levied by its member agencies.

Revenues collected on behalf of member agencies are maintained in a separate account and passed through to each member agency.

BARTLE WELLS ASSOCIATES   10
MRWPCA Comprehensive Rate & Fee Study
Table 1 – Accounts & Monthly Rates
Accounts Billing
Customer Class (Est) Units 2014/15 2015/16 2016/17

RESIDENTIAL
102/105
107/109 Residential 51,778 86,971 Each living unit $14.85 $15.35 $15.85 SUBTOTAL 51,778 86,971

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 6,100 8,348 Location/each business 10.05 10.40 10.75 D. 221 Hotel/Motel 156 6,402 Each room 6.30 6.50 6.70
E. 222 Bed & Breakfast Inn 13 201 Each room 4.15 4.30 4.45 F. 231 Supermarket 53 53 Location 100.00 104.00 107.00
G. 241 Medical Office 660 660 Each licensed physician 12.85 13.30 13.75 H. 242 Dental Office 231 231 Each licensed dentist 17.60 18.20 18.80 I. 243 Rest Home/Convalescent 46 1,852 Each bed of licensed capacity 3.90 4.05 4.20 J. 244 General Hospital 55 Each bed of licensed capacity 23.15 23.95 24.70 K. 245 Animal Hospital 20 20 Location/each business 26.70 27.65 28.55 L. 261 Restaurant–One Meal 37 2,237 Each restaurant seat 0.95 1.00 1.05 262 Restaurant–Two Meals 203 12,183 Each restaurant seat 1.45 1.50 1.55 263 Restaurant–Three Meals 48 3,366 Each restaurant seat 2.80 2.90 3.00 M. 264 Restaurant w/Bar 80 11,895 Each restaurant seat 2.80 2.90 3.00 N. 265 Bar 37 37 Location/each business 23.05 23.85 24.60 O. 266 Nightclub 22 Location/each business 68.40 70.80 73.05 P. 267 Takeout Food–Small 308 308 Location/each business 33.40 34.55 35.65 268 Takeout Food–Medium 62 62 Location/each business 81.65 84.50 87.20 269 Takeout Food–Large 30 30 Location/each business 149.00 154.00 159.00 Q. 270 Bakery 98 98 Location/each business 38.55 39.90 41.20 R. 281 Theater 11 56 Per screen at each location 31.70 32.80 33.85 S. 282 Bowling Center 22 Location/each business 97.00 100.00 103.00 T. 290 Mortuary 77 Location/each business 48.95 50.65 52.25 U. 291 School (Minimum) 121 121 Each business 10.05 10.40 10.75 292 School (0‐6) 72 30,446 School population 0.13 0.13 0.13 293 School (7‐College) 42 30,016 School population 0.26 0.27 0.28 294 Boarding School 7 1,387 School population 3.05 3.15 3.25 V. 331 Service Station/Repair 236 236 Location/each business 10.50 10.85 11.20 332 Service Station/Repair (11‐20) 44 Location/each business 10.50 10.85 11.20 W. 353 Dry Cleaners 18 18 Location/each business 32.80 33.95 35.05 X. 354 Laundromats 17 1,888 Each washing machine 8.40 8.70 9.00 SUBTOTAL 8,726
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm 120 120
Special Unit Rates
Flow ($ per mgd) 644,000 666,000 687,000
BOD ($ per BOD x mgd) 763 789 815
SS ($ per SS x mgd) 315 326 337
Cust Svc ($ per account) 2.66 2.75 2.84
SUBTOTAL 120 120
TOTAL ACCOUNTS 60,624
Historical Rates Effective
BARTLE WELLS ASSOCIATES   11
MRWPCA Comprehensive Rate & Fee Study

2.2 Sewer Rate Surveys
The following chart shows a survey of regional sewer rates.  Rates for MRWPCA member agencies include  two  components  as  shown  on  the  charge,  including  a) MRWPCA’s  wastewater  treatment charge plus b) each agency’s local charge for wastewater collection.

Figure 3 – Regional Sewer Rate Survey
The chart on the following page shows a survey of monthly residential sewer rates for a number of larger benchmark agencies in California.  For agencies with multiple service area areas, the survey shows the mid‐point rate (half way between the lowest and highest rate) as a representation of each agency’s rates.

BARTLE WELLS ASSOCIATES   12
MRWPCA Comprehensive Rate & Fee Study
Figure 4 – Benchmark Agency Sewer Rate Survey
MRWPCA member agency sewer rates are in the low to middle range compared to the other regional and benchmark agencies. Rates can vary widely from agency to agency due to a wide range of factors.

With  the  proposed  rate increases, MRWPCA member agency  rates are expected  to  remain in  the lower to middle range in future years.  Many of the other agencies on the surveys are also anticipating sewer rate increases in upcoming years.

BARTLE WELLS ASSOCIATES   13
MRWPCA Comprehensive Rate & Fee Study

2.3 Constitutional Rate Requirements
The wastewater treatment rates developed in this study were designed to comply with provisions of Article 13D, Section 6 of the California Constitution, established by Proposition 218.  In accordance with  these  requirements,  the  proposed  rates are  designed  to a) not exceed  the  cost  of  providing service, b) recover revenues in proportion to the cost for serving each customer.

Proposition  218 was adopted  by  California voters in  1996 and added Articles  13C and  13D  to  the California Constitution.  Article 13D, Section 6 governs property‐related charges, which the California Supreme Court subsequently ruled includes ongoing utility system charges such as water, sewer, and garbage  rates.    Article  13D,  Section  6  establishes  a)  procedural  requirements  for  imposing  or increasing property‐related charges, and b) substantive requirements for those charges.  Article 13D also  requires voter approval  for  new  or increased  property‐related  charges  but exempts  rates  for water,  sewer,  and  garbage  service  from  this  voting  requirement  if  the  rates  comply  with  the substantive and procedural requirements established by Proposition 218.

The  substantive  requirements  of Article  13D, Section  6  require MRWPCA’s wastewater  treatment rates to meet the following conditions:
1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service.
2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No  fee  or  charge may  be  imposed  for  a  service  unless  that  service  is  actually  used  by,  or immediately available to, the owner of the property in question. 5) No  fee or charge may be imposed  for general governmental services, such as police or  fire services, where the service is available to the public at large in substantially the same manner as it is to property owners.

2.4 Rate‐Setting Methodology
The rates developed in this report use a straightforward methodology to develop rates that reflect the cost of providing service and fairly apportion costs to each customer.  The general methodology used in this study is summarized on the diagram on the following page.

BARTLE WELLS ASSOCIATES   14
MRWPCA Comprehensive Rate & Fee Study
Revenue Requirements
Determine future funding
requirements from rates
Cost Allocation
Equitably apportion costs
to rate components
Rate Design
Develop rates that
recover revenues in
proportion to the cost
of providing service
Identify near‐term &
long‐term operating and
capital funding needs
Evaluate financing
alternatives for capital
improvements
Establish fund reserve
targets for financial
planning
Develop financial
projections and evaluate
financial & rate scenarios
Identify number of
accounts/billing units;
estimate wastewater
flow & strength by
customer class
Allocate costs for
recovery from
wastewater flow and
strength (BOD & SS)
Develop underlying unit
costs for wastewater
flow and strength
Apply unit costs to the
wastewater flow and
strength characteristics
of each customer class
Review existing rate
structure
Evaluate rate structure
alternatives or
modifications
Develop rates that
recover costs
apportioned to each
customer class
Phase in rate increases
over time, to the extent
possible, to help
minimize annual impacts
Cost of Service Rate‐Setting Methodology
BARTLE WELLS ASSOCIATES   15
MRWPCA Comprehensive Rate & Fee Study

2.5 Sewer Financial Overview & Financial Challenges
Bartle  Wells  Associates  conducted  an  independent  evaluation  of  MRWPCA  finances.    Key observations include:
 MRWPCA’s wastewater utility is a self‐supporting enterprise funded primarily from wastewater service charges and other fees for service.  The Agency does not receive property taxes.  As such, rates and fees need to be set at levels adequate to support the costs of providing service.  MRWPCA has provided good financial stewardship by adopting small annual sewer rate increases in 9 of the past 10 years to keep rates aligned with escalating costs of service.  MRWPCA’s fund reserves are on the low side based on standard financial metrics and compared to  other  benchmark  agencies.    However,  the  wastewater  enterprise  anticipates  receiving reimbursement  from an anticipated Clean Water State Revolving Fund Loan  for prior expenses incurred  for Pure Water Monterey.  This  reimbursement is  roughly estimated at $4 million  for financial planning purposes and is expected to restore available fund reserves/working capital to a prudent minimal level.
 MRWPCA capital improvement expenditures have averaged about $4.3 million over the 5 prior fiscal  years  (2011/12  –  2015/16)  including  about  $3.8  million  per  year  of  infrastructure improvements and  $500,000 of annual  funding  for capital equipment.  Current  rates generate roughly $4.0 million per year for capital needs.  However, MRWPCA’s facilities are aging and will require substantial increased investment for repair, maintenance, rehabilitation and replacement in upcoming years as described below.
 MRWPCA  has  a  relatively  low  level  of  outstanding  wastewater  debt  and  does  not  anticipate issuing additional debt for wastewater system capital improvements in the foreseeable future.

2.6 Financial Challenges / Key Drivers of Rate Increases Going forward, MRWPCA is facing a number of financial challenges that will require rate increases in upcoming years.  Key drivers of rate increases include:

2.6.1 Capital Improvements / Aging Infrastructure
MRWPCA’s  wastewater  system  faces  a  substantial  amount  of  capital  improvements  needed  to address  current  deficiencies  and  rehabilitate  and  replace  aging  infrastructure.    The  wastewater treatment plant is now 27 years old and MRWPCA’s pump stations are substantially older.  A 10‐year capital  improvement  program  developed  by  MRWPCA’s  Engineering  Department  identifies  over $92 million  of  infrastructure  funding  needs  with  future  improvements  averaging  approximately $10 million  per  year.    Additional  capital  funding  needs  may  be  identified  by  a  comprehensive BARTLE WELLS ASSOCIATES   16
MRWPCA Comprehensive Rate & Fee Study
evaluation of MRWPCA’s conveyance system that is currently underway, and a subsequent planned evaluation of the wastewater treatment plant.

MRWPCA plans to fund its wastewater system capital improvement needs on a pay‐as‐you‐go basis, without reliance on debt financing.  The proposed rate increases over the next 3 years will gradually phase‐in  increases  in  annual  funding  for  capital  improvements  from  the  current  level  of approximately $4 million, generated by current rates, to almost $8 million per year when the rate increases are  fully phased‐in.  The proposed  rate increases over  the next  3 years are gradual and significant  steps in  the  right direction, however,  the  financial projections indicated additional  rate increases will be needed in future years to continue the phase‐in of capital funding to required levels.

2.6.2 Increased Operating Costs
MRWPCA also faces annual increases in operating costs due to inflation – including rising costs for utilities, staffing, insurance, supplies, etc. – and other factors.  Cost inflation for wastewater utility agencies  has  historically  been  higher  than  the  Consumer  Price  Index  (CPI).    MRWPCA  may  face additional funding needs in future years for maintenance of the wastewater treatment plant, which is now 27 years old, and conveyance system, which is even older.

MRWPCA is also facing increases in annual funding requirements for the California Public Employee Retirement System (PERS).  Based on information provided by PERS, annual payments are projected to  roughly  triple  over  the  next  6 years  from approximately  $800,000  per year in  2016/17  to  over $2.3 million  by  2022/23,  largely  due  to  a  reduction  in  the  projected  earnings  rate  of  future investments.

BARTLE WELLS ASSOCIATES   17
MRWPCA Comprehensive Rate & Fee Study

2.7 10‐Year Cash Flow Projections
BWA  developed  10‐year  cash  flow  projections  to  identify  annual revenue  requirements,  evaluate financial scenarios, and determine future rate increases.  The table on the next page shows 10‐year wastewater cash flow projections. The projections incorporate the latest information available as well as a number of reasonable and slightly conservative assumptions.  Key assumptions include:
 Operating and maintenance costs are based on the 2016/17 budget and generally escalate at the annual rate of 4.0% to account for future cost inflation.  Growth from new development and/or redevelopment is projected at the equivalent of 150 new single family homes per year for financial planning purposes.  Capital improvement funding phases in corresponding with projected rate increases to levels that support MRWPCA’s future annual CIP funding needs.  The projections assume capital projects are funded on a pay‐as‐you‐go basis with no debt financing.  The  projections  include  costs  for  new  approved  staff  positions  for  public  relations  and administrative assistant.
 The  projections  account  for  future  anticipated  changes  in  operating  costs  and  revenue reimbursements related to Pure Water Monterey.
 Other revenues and expenses are projected as shown on the table.  The projections include a minimum  fund  reserve  target  for  financial planning purposes set at 25%  (3 months) of operating and maintenance expenses, plus $2 million for emergency CIP funding.  The total minimum  fund reserve target escalated over time  from roughly $6.7 million in the current  fiscal year 2016/17 to $8.2 million in 5 years.

BARTLE WELLS ASSOCIATES   18
MRWPCA Comprehensive Rate & Fee Study
Table 2 ‐ 10‐Year Cash Flow Projections

Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Rate Adjustment % 3.26% 10.0% 10.0% 10.0% 8.0% 8.0% 8.0% 2.0% 2.0% 2.0% 2.0% Projected Monthly Residential Charge $15.85 $17.42 $19.15 $21.06 $22.74 $24.56 $26.52 $27.05 $27.59 $28.14 $28.70Rate Adjustment $ (to Residential Charge) $0.50 $1.57 $1.73 $1.91 $1.68 $1.82 $1.96 $0.53 $0.54 $0.55 $0.56Residential Billing Equivalents 111,761 111,961 112,111 112,261 112,411 112,561 112,711 112,861 113,011 113,111 113,211Growth (Residential Equivalents) 200 150 150 150 150 150 150 150 100 100 100 Interest Earnings Rate 0.7% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Capacity Charge per Residential Equivalent +2% $3,506 $3,389 $3,457 $3,526 $3,597 $3,669 $3,742 $3,817 $3,893 $3,971 $4,050 Beginning Unrestricted Fund Reserves $3,690,000 $6,845,000 $6,833,000 $6,784,000 $6,797,000 $6,897,000 $7,219,000 $7,595,000 $7,965,000 $8,197,000 $8,421,000REVENUESWastewater Treatment Charges ‐  21,257,000 23,447,000 25,821,000 28,444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000Military Wastewater Charges ‐  374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000Liquid Waste & Grease Haulers 2% 630,000 643,000 656,000 669,000 682,000 696,000 710,000 724,000 738,000 753,000 768,000Brine 0% 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000Interruptible Rates (ra te may cha nge ) 0% 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 User Penalties/Lien Penals & Trans 0% 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000NSD Agency Billing Fees 0% 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000Fee for Services ‐ Outside Entities 2% 189,000 193,000 197,000 201,000 205,000 209,000 213,000 217,000 221,000 225,000 230,000Lift Station Maintenance 2% 150,000 153,000 156,000 159,000 162,000 165,000 168,000 171,000 174,000 177,000 181,000WRA Reclamation Indirect Charges 4% 426,000 443,000 461,000 479,000 498,000 518,000 539,000 561,000 583,000 606,000 630,000Pure Water Monterey Indirect Charges 4% 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 410,000Interest Earnings ‐  30,000 68,000 68,000 68,000 68,000 69,000 72,000 76,000 80,000 82,000 84,000Capacity Charges ‐  700,000 508,000 519,000 529,000 540,000 550,000 561,000 573,000 389,000 397,000 405,000Miscellaneous Income 0% 181,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Revenues 24,996,000 27,038,000 29,761,000 32,444,000 34,825,000 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000SRF Reimbursement to WW 4,000,000EXPENSESOperating & Maintenance Salaries & Benefits 4% 11,158,000 11,604,000 12,068,000 12,551,000 13,053,000 13,575,000 14,118,000 14,683,000 15,270,000 15,881,000 16,516,000CalPERS Payments ‐  790,000 947,000 1,219,000 1,516,000 1,809,000 2,109,000 2,369,000 2,464,000 2,563,000 2,666,000 2,773,000Less Sals/Bens Charged to WRA & CIP 4% (1,361,000) (1,415,000) (1,472,000) (1,351,000) (1,405,000) (1,461,000) (1,519,000) (1,580,000) (1,643,000) (1,709,000) (1,777,000)New Positions: Adm As s t/Public Outrea ch 4% 0 208,000 216,000 225,000 234,000 243,000 253,000 263,000 274,000 285,000 296,000 New Positions: Back from GWR 4% 0 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 Professional/Contract Svcs/Op Supplie 4% 1,778,000 1,849,000 1,923,000 2,000,000 2,080,000 2,163,000 2,250,000 2,340,000 2,434,000 2,531,000 2,632,000Chemicals 4% 1,454,000 1,512,000 1,572,000 1,635,000 1,700,000 1,768,000 1,839,000 1,913,000 1,990,000 2,070,000 2,153,000Utilities 4% 2,274,000 2,365,000 2,460,000 2,558,000 2,660,000 2,766,000 2,877,000 2,992,000 3,112,000 3,236,000 3,365,000 Maintenance & Repairs 4% 1,213,000 1,262,000 1,312,000 1,364,000 1,419,000 1,476,000 1,535,000 1,596,000 1,660,000 1,726,000 1,795,000Office Expense/Info Systems/Other 4% 1,092,000 1,136,000 1,181,000 1,228,000 1,277,000 1,328,000 1,381,000 1,436,000 1,493,000 1,553,000 1,615,000Major O&M 4% 460,000 500,000 520,000 541,000 563,000 586,000 609,000 633,000 658,000 684,000 711,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000Debt Service 2006 Wastewater Rev Bonds 127,000 1,024,000 0 0 00000002012 Wastewater Rev Refi Bonds 811,000 843,000 871,000 905,000 941,000 974,000 1,009,000 1,047,000 1,086,000 1,125,000 0 2013 Pension Obligation Bonds 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 0 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 2,251,000 2,182,000 2,096,000 2,034,000 2,077,000 2,130,000 2,166,000 2,153,000 2,140,000 2,153,000 0 Capital Improvements
Capital Improvement Projects 3% 2,710,000 4,400,000 6,200,000 7,300,000 8,400,000 9,500,000 11,000,000 10,800,000 10,500,000 10,200,000 11,500,000CIP Carry‐Forward & GWR Contribution 1,522,000 0 0 0 0 0 0 0 0 0 0Capitalized Equipment 3% 500,000 500,000 515,000 530,000 546,000 562,000 579,000 596,000 614,000 632,000 651,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 4,732,000 4,900,000 6,715,000 7,830,000 8,946,000 10,062,000 11,579,000 11,396,000 11,114,000 10,832,000 12,151,000Total Expenses 25,841,000 27,050,000 29,810,000 32,431,000 34,725,000 37,069,000 39,794,000 40,639,000 41,429,000 42,287,000 42,624,000Revenues Less Expenses 3,155,000 (12,000) (49,000) 13,000 100,000 322,000 376,000 370,000 232,000 224,000 756,000Ending Fund Reserves/Working Capital 6,845,000 6,833,000 6,784,000 6,797,000 6,897,000 7,219,000 7,595,000 7,965,000 8,197,000 8,421,000 9,177,000Fund Rsrv Target (25% O&M +$2M CIP) 6,710,000 6,990,000 7,250,000 7,640,000 7,930,000 8,220,000 8,510,000 8,770,000 9,040,000 9,330,000 9,620,000 Debt Service Coverage: Wastewater Only 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐ Debt Service Coverage: All Debt 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37 MRWPCA Wastewater Cash Flow Projections
BARTLE WELLS ASSOCIATES   19
MRWPCA Comprehensive Rate & Fee Study
The chart below graphically shows a 10‐year breakdown of projected expenses and revenues.

Figure 5 –Projected Revenues & Expenses

2.8 Debt Service Coverage Projections
The table on the next page shows 10‐year debt service coverage projections for debt secured by the wastewater agency, the Water Reclamation Authority, and Pure Water Monterey.  As required by the State  Revolving  Fund  (SRF)  Financing  Program,  MRWPCA’s  SRF  loan  for  financing  Pure  Water Monterey facilities is secured by net revenues from Pure Water Monterey and MRWPCA’s wastewater system.

BARTLE WELLS ASSOCIATES   20
MRWPCA Comprehensive Rate & Fee Study
Table 3 ‐ 10‐Year Debt Service Coverage Projections
Esc
% 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 REVENUESWastewater Revenues  Wastewater Treatment Charges 21,257,000 23,447,000 25,821,000 28,444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000  Other Wastewater Revenues 3,739,000 3,591,000 3,940,000 4,000,000 4,062,000 4,127,000 4,196,000 4,269,000 4,147,000 4,217,000 4,291,000  Subtotal  24,996,000 27,038,000 29,761,000 32,444,000 34,825,000 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000Reclamation Reimbursements  Operating Reimbursements 4,365,000 4,496,000 4,631,000 4,770,000 4,913,000 5,060,000 5,212,000 5,368,000 5,529,000 5,695,000 5,866,000  Debt Service Reimbursements 1,767,000 1,752,000 1,105,000 1,090,000 1,075,000 1,060,000 1,045,000 1,030,000 1,015,000 1,000,000 985,000  Subtotal  6,132,000 6,248,000 5,736,000 5,860,000 5,988,000 6,120,000 6,257,000 6,398,000 6,544,000 6,695,000 6,851,000Pure Water Monterey Revenues  Water Sales (Cal‐Am) 2% ‐  ‐  6,020,000 6,140,000 6,263,000 6,388,000 6,516,000 6,646,000 6,779,000 6,915,000 7,053,000 Other Revenues 2% ‐  ‐  1,368,000 1,395,000 1,423,000 1,451,000 1,480,000 1,510,000 1,540,000 1,571,000 1,602,000 Subtotal  ‐  ‐  7,388,000 7,535,000 7,686,000 7,839,000 7,996,000 8,156,000 8,319,000 8,486,000 8,655,000 Total Revenues 31,128,000 33,286,000 42,885,000 45,839,000 48,499,000 51,350,000 54,423,000 55,563,000 56,524,000 57,692,000 58,886,000OPERATING EXPENSES  Wastewater O&M 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000  Reclamation O&M 3% 4,365,000 4,496,000 4,631,000 4,770,000 4,913,000 5,060,000 5,212,000 5,368,000 5,529,000 5,695,000 5,866,000  Pure Water Monterey O&M 1.5% ‐  ‐  3,400,000 3,451,000 3,503,000 3,556,000 3,609,000 3,663,000 3,718,000 3,774,000 3,831,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Operating Expenses 23,223,000 24,464,000 29,030,000 30,788,000 32,118,000 33,493,000 34,870,000 36,121,000 37,422,000 38,771,000 40,170,000 NET REVENUES 7,905,000 8,822,000 13,855,000 15,051,000 16,381,000 17,857,000 19,553,000 19,442,000 19,102,000 18,921,000 18,716,000DEBT SERVICE  2006 Bonds (MRWPCA) 127,000 1,024,000 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐ 2012 Bonds (MRWPCA) 811,000 843,000 871,000 905,000 941,000 974,000 1,009,000 1,047,000 1,086,000 1,125,000 ‐ 2013 Bonds (MRWPCA) 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 ‐ Future Bonds/Loans (MRWPCA) 00000000000
1999 SRF Loan (SVRP) 632,000 632,000 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐ 2003 USBR Loan (SVRP) 1,135,000 1,120,000 1,105,000 1,090,000 1,075,000 1,060,000 1,045,000 1,030,000 1,015,000 1,000,000 985,000  2017 SRF Loan (PWM) ‐  ‐  3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 Line of Credit Payments (PWM) 30,000 100,000 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Debt Service 4,048,000 4,034,000 6,501,000 6,424,000 6,452,000 6,490,000 6,511,000 6,483,000 6,455,000 6,453,000 4,285,000DEBT SERVICE COVERAGE  Wastewater Agency 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐ Water Reclamation Authority 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00  Pure Water Monterey ‐  ‐  1.21 1.24 1.27 1.30 1.33 1.36 1.39 1.43 1.46 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Debt Service Coverage 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37 REMAINING NET REVENUES  Wastewater Agency 3,887,000 4,888,000 6,666,000 7,843,000 9,046,000 10,384,000 11,955,000 11,766,000 11,346,000 11,056,000 12,907,000 Water Reclamation Authority 00000000000
Pure Water Monterey (30,000) (100,000) 688,000 784,000 883,000 983,000 1,087,000 1,193,000 1,301,000 1,412,000 1,524,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Remaining Net Revenues 3,857,000 4,788,000 7,354,000 8,627,000 9,929,000 11,367,000 13,042,000 12,959,000 12,647,000 12,468,000 14,431,000 MRWPCA Debt Service Coverage Projections
BARTLE WELLS ASSOCIATES   21
MRWPCA Comprehensive Rate & Fee Study

2.9 Rate Revenue Increases
The cash flow projections indicate the need for rate increases over the next 3 years and beyond in order to fund MRWPCA’s future revenue requirements and maintain financial stability.  The proposed increases are  designed  to increase  revenues  from  rates  by  10% each year  for  the  next  3 years as shown on the table below.  However, while the overall level of increase is projected at 10% each year, the impacts  to  the  rates  for each customer class may vary as  the proposed  rates also account  for adjustments due to updated cost allocations and a realignment of rates with the cost of service.

Table 4 – Projected Rate Revenue Increases
In future years, MRWPCA can re‐evaluate its finances and revenue requirements and adjust rates as needed based on future updated projections.  While MRWPCA always has the flexibility to implement rate adjustments that are lower than adopted pursuant to the Proposition 218 process, future rates cannot exceed adopted increases without going through the Proposition 218 process again.  As such, rates adopted pursuant to Proposition 218 are essentially future rate caps.

2.10 Sewer Rate Increase Alternatives
As part of the rate study process, BWA worked with MRWPCA to evaluate a number of financial and rate scenarios, including scenarios with both lower and higher levels of rate increases.  Lower levels of rate increases would have generated inadequate funding or required debt financing to help fund capital improvement needs, and would have resulted in the need for higher rate increases after the next 3 years.  Higher levels of rate increases would have phased‐in additional capital funding quicker, and  would  have  resulted  in  the  need  for  lower  future  rate  increases.    Ultimately,  MRWPCA  is proposing to move forward with a balanced approach that attempts to minimize the near‐term and long‐term  impact  on  ratepayers  while  prudently  phasing  in  higher  levels  funding  for  capital improvement needs.

2.11 Cost Recovery Allocations
BWA worked closely with MRWPCA staff to develop rates that equitably apportion costs to each of the Agency’s customer classes.  Costs were allocated to wastewater flow, BOD and SS for purposes of developing  underlying  rates  for  each  of  these  parameters  that  are  subsequently  applied  to  the wastewater flow and strength characteristics of each customer class to determine a rate that reflects the costs of providing service to each customer class.   For development of rates, costs were allocated for fiscal year 2019/20, the third and final year of the proposed rate increases. 2017/18 2018/19 2019/20
Projected Rate Increases 10% 10% 10%
BARTLE WELLS ASSOCIATES   22
MRWPCA Comprehensive Rate & Fee Study
 Future  anticipated  increases  in  CalPERS  contribution  requirements  are  allocated  to  each department based on each department’s share of budgeted CalPERS funding requirements.  Operating and maintenance expenses and capital improvement program costs are allocated for recovery from wastewater flow, BOD and SS based on input from MRWPCA’s Engineering Department.  These allocations reflect engineering estimates of the share of costs related to wastewater  flow  and  strength  for  each  expense  item.    For  example,  costs  for  MRWPCA’s conveyance  system  are  predominantly  allocated  to  wastewater  flow,  while  costs  for  the wastewater treatment plant are allocated to mix of flow, BOD and SS based on a reasonable estimate of the share of costs associated with each parameter.  For purposes of rate recovery, net costs are allocated for recovery as follows:

Table 5 – Cost Allocations

2.12 Unit Cost Derivation
Unit costs for wastewater flow, BOD and SS were developed based on a) the total amount of costs allocated  to  each  parameter,  divided  by  b)  the  estimated  billable  volume  of  wastewater  flow  or pounds of BOD and SS generated by MRWPCA’s customer base.  These unit costs are then applied to the wastewater flow and strength characteristics of each customer class.  Wastewater flow per residential dwelling unit has declined over the past decade, including a significant  decrease  in  recent  years  as  customers  have  cut  back  water  use,  and correspondingly sewer discharge, in response to California’s recent drought.  As flows have decreased,  wastewater  strength  concentrations  have  increased.    Residential  wastewater discharge is estimated as follows:

Table 6 – Projected Rate Revenue Increases
 Flows from commercial and institutional customers were estimated at 80% of historical flow factors to account for reductions in water use and wastewater discharge over the past 5‐10 years as customers  have  reduced water and  sewer  use  due  to  conservation and improved efficiency.

Cust Svc/Accts Flow BOD SS

3.27% 57.84% 22.49% 16.40%
Flow (gpd) BOD (mg/l) SS (mg/l)
Prior Estimates 189 265 265
Updated Estimates 150 300 300
BARTLE WELLS ASSOCIATES   23
MRWPCA Comprehensive Rate & Fee Study
 Wastewater flow and strength loading from major industrial customers was estimated based on  metered  flow  from  calendar  year  2016  and  estimated  wastewater  strength  for  each customer based on industry type or actual wastewater sampling data.

The following table shows the derivation of underlying unit rates for fiscal year 2019/20, which are subsequently applied to the wastewater flow and strength characteristics of each customer class to derive rates that reflect the cost of providing service to each type of customer.  These unit rates are designed  to  support  the  revenue  requirements  for  2019/20 as  determined  based  on  the  financial projections.  Unit rates are calculated by dividing the costs allocated to wastewater flow, BOD, SS, and customer service by the volume of annual billable flow, BOD and SS.

Table 7 – Unit Rates for Wastewater Flow & Strength

2.13 Proposed Wastewater Treatment Rates
The table on the next page shows estimated wastewater flows and loadings for each customer class along  with  proposed  rates  for  the  next  3  fiscal  years.    To  help  minimize  the  annual  impact  on ratepayers and facilitate a gradual transition, rates are phased in over 3 years from current levels to rates derived for 2019/20.

Cust Svc/Accts Flow BOD SS Total
2019/20 Rate Recovery $930,241 $16,452,983 $6,397,224 $4,663,553 $28,444,000

3.27% 57.84% 22.49% 16.40% 100.00%
Billing Units for Cost Recovery
Residential 13,045,650 13,045,650 11,913,679 11,913,679 Commercial 2,771,609 2,771,609 2,796,949 1,845,673
Special Users 1,004,928 1,004,928 996,986 1,130,695
Growth (Res Equivs) 67,500 67,500 56,506 56,506 __________ __________ __________ __________ Total 16,889,687 16,889,687 15,764,121 14,946,554
gpd  gpd  lbs  lbs
Cost per Unit $0.0551 $0.9741 $0.4058 $0.3120
per gpd per gpd  per lb  per lb
Cost per Unit for Special User Formula
Included> $1,029,221 $1,235 $950
per mgd per BOD x mgd  per SS x mgd
BARTLE WELLS ASSOCIATES   24
MRWPCA Comprehensive Rate & Fee Study
Table 8 – Proposed Wastewater Treatment Rates
BARTLE WELLS ASSOCIATES   25
MRWPCA Comprehensive Rate & Fee Study

2.14 Rate Impacts
With MRWPCA’s proposed wastewater treatment rate increases, the total sewer service charges of MRWPCA member agencies are projected to remain in the lower to middle range compared to other regional agencies.

The following chart shows historical and projected monthly residential wastewater treatment rates.

From  a  long‐term  perspective,  residential  rates  with  the  full  3‐year  phase‐in  of  proposed  rate increases will equal the 1992 rate adjusted at the annual rate of 3.1%.

Figure 6 – Historical & Projected Sewer Charges

BARTLE WELLS ASSOCIATES   26
MRWPCA Comprehensive Rate & Fee Study
The dollar impact of the proposed rate increases on residential customers is summarized below.  With full implementation of proposed rate increases over the next 3 years, residential rates will increase by a total of $5.20 per month.

Table 9 – Residential Rate Impact
MRWPCA’s  proposed  rate  increases  only  apply  to  a  portion  of  the  total  combined  sewer  service charge for each member agency.  Currently, MRWPCA’s charges account for anywhere from about 35% of total sewer charges (for Pacific Grove and Fort Ord) to as high as 75% of the total charge in Salinas (which has the lowest regional rates for wastewater collection based on the survey).

Current 2017/18 2018/19 2019/20
Monthly Residential Rate $15.85 $17.40 $19.15 $21.05
Increase 1.55 1.75 1.90
BARTLE WELLS ASSOCIATES   27
MRWPCA Comprehensive Rate & Fee Study
3 CAPACITY CHARGE UPDATE

3.1 Capacity Charges
MRWPCA levies capacity charges on new or expanded connections to MRWPCA’s wastewater system.

Capacity  charges are levied as a  condition  of  development  or  change in  use, and are  designed  to recover the cost of capacity in infrastructure and assets benefitting new development.  MRWPCA’s capacity charges have not been independently reviewed or updated in many years.  Since the early 2000s, MRWPCA has adjusted its capacity charges most years by the change in the Engineering News‐ Record (ENR) Construction Cost Index, a widely‐used measure of construction cost inflation.

The  following  chart  shows  a  history  of  MRWPCA’s  capacity  charges  per  Equivalent  Dwelling  Unit (EDU).  One EDU represents the wastewater demand of a typical residential dwelling unit.  MRWPCA’s current capacity charge of $3,505 per EDU is equivalent to the charge per EDU levied in 1992 adjusted by roughly 2.8% per year for the past 25 years.  This level of escalation falls between CPI and the ENR Construction Cost Index.

Figure 7 – Historical Capacity Charges per EDU
BARTLE WELLS ASSOCIATES   28
MRWPCA Comprehensive Rate & Fee Study

3.2 Capacity Charge Surveys
The following chart shows a survey of regional sewer capacity charges.  Charges for agencies served by MRWPCA include both MRWPCA’s capacity charge for wastewater treatment facilities as well as each member agency’s capacity charge for local wastewater collection facilities.

Figure 8 – Regional Sewer Capacity Charge Survey

BARTLE WELLS ASSOCIATES   29
MRWPCA Comprehensive Rate & Fee Study
The following chart shows a survey of residential sewer capacity charges of a number of MRWPCA benchmark agencies.  A midpoint or average charge is shown for agencies with multiple service areas to provide an overall estimate of the charge for a typical new home.

Figure 9 –Sewer Capacity Charge Survey of Benchmark Agencies

BARTLE WELLS ASSOCIATES   30
MRWPCA Comprehensive Rate & Fee Study

3.3 Government Code
Development impact fees are governed by California Government Code Section 66000 et. seq This section of the Code was initially established by Assembly Bill 1600 (AB 1600) and is commonly referred to as the Mitigation Fee Act.  Pursuant to the Code, a development impact fee is not a tax or special assessment, but is instead voluntary charge levied  to defray  the cost of public  facilities needed  to serve a new development.

Section 66013 of the Code specifically governs water and wastewater capacity charges.  This section of the Code defines a “capacity charge” to mean “a charge for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged.”  The Code distinguishes “capacity  charges”  from  “connection  fees”  which  are  defined  as  fees  for  the  physical  facilities necessary to make a water or sewer connection, such as costs related to installation of meters and pipelines from a new building to a water or sewer main.

According  to  the  Section  66013,  a  water  or  wastewater  capacity  charge  “shall  not  exceed  the estimated reasonable cost of providing  the service  for which  the  fee or charge is imposed” unless approved by a two‐thirds vote.  Section 66013 does not detail any specific methodology for calculating capacity charges.

Section 66016 of the Code identifies the procedural requirements for adopting or increasing water and wastewater capacity charges and Section 66022 summarizes the general process by which the charges can be legally challenged

3.4 Fee Methodology: Average Cost Approach
Based on evaluation of alternatives, BWA recommends use of an average cost approach to calculate updated capacity charges.  Under this approach, new connections buy in for a proportionate share of capacity needs in existing and planned wastewater conveyance and treatment facilities and assets.

The  charges  are  calculated  based  on  the  total  cost  of  facilities  including  planned  upgrades  and expansions,  divided  by  the  total  service  capacity  of  MRWPCA’s  facilities  with  completion  of  the improvements.  The average cost approach is a widely used and accepted approach for calculating capacity charges, particularly for service areas that are largely built out but require some additional infrastructure improvements to meet the demands of anticipated growth or redevelopment.

BARTLE WELLS ASSOCIATES   31
MRWPCA Comprehensive Rate & Fee Study
The general methodology used to calculate updated water and sewer capacity charges is summarized below.

There are a number of widely‐used methods for valuing infrastructure and assets for cost recovery.

The capacity charges calculated in this report are designed to recover the estimated replacement cost of existing MRWPCA facilities as estimated based on acquisition cost escalated into current dollars (as of January 2017) based on the change in the ENR Construction Cost Index.

3.5 Cost Recovery Allocation
BWA worked with staff from MRWPCA’s Engineering Department to allocate costs for recovery from capacity charge components for wastewater flow and strength, as measured by BOD and SS.  Costs of existing wastewater system facilities were first broken down into various functional components.  Subsequently, costs for each component were allocated for recovery from flow, BOD and SS based on input from MRWPCA staff.

Capacity Charge Methodology
Step 1 ‐ Determine Cost of Facilities & Assets for Fee Recovery Determine the recoverable cost of facilities and assets benefiting new development to be recovered by the capacity charge.

Step 2 ‐ Identify Capacity of Facilities
Identify the corresponding capacity of facilities and assets identified in Step 1; capacity may be limited by the amount of development facilities can serve without substantial additional expansion or improvements.

Step 3 ‐ Calculate Cost per Unit of Capacity
Calculate the cost per unit of capacity by dividing the costs identified for fee recovery in Step 1 by the capacity of those facilities identified in Step 2.

Step  4 ‐ Apply Cost per Unit to the Capacity Needs of Customer Classes Apply the unit cost for capacity to the infrastructure capacity needs for each customer class to determine an equitable capacity charge per new connection.

BARTLE WELLS ASSOCIATES   32
MRWPCA Comprehensive Rate & Fee Study
 Capital  improvement  program  costs  were  first  allocated  to  a)  rehab  &  replacement,  and b) upgrade  &  expansion.    Costs  allocated  to  upgrade  and  expansion  were  subsequently allocated for cost recovery from flow, BOD and SS based on input from MRWPCA staff.  Costs allocated to rehab & replacement were excluded  from  fee recovery to ensure the updated capacity charge does not double‐count by including both an asset as well as its replacement.  Costs included for fee recovery are adjusted to a) include prior interest payments and issuance costs incurred for debt used to finance MRWPCA facilities, and b) exclude outstanding debt principal.  This ensures that the updated charge recovers financing costs incurred for funding facilities but excludes unpaid principal, which represents costs of existing facilities that have not yet been funded.
 The updated fee calculation also includes a buy‐in for unrestricted operating fund reserves to ensure new connection buy‐in on parity with existing customers.

As shown on the following table, $470 million of costs are identified for recovery from the updated capacity charges.

Table 10 – Costs Allocation of Facilities & Assets
Flow BOD SS
Existing Wastewater System Assets (Jan‐2017 Cost)
Acquisition Cost Adjusted by ENR Construction Cost Index $444,074,555 49.3% 23.2% 27.5% 100.0% Allocation $218,839,512 $102,909,796 $122,325,247 $444,074,555 10‐Year Capital Improvement Projects (Current $)
Upgrades/Expansions 15,760,000
Rehab/Replacement Excluded
Subtotal 15,760,000 53.4% 18.1% 28.5% 100.0%
Allocation 8,420,000 2,853,250 4,486,750 15,760,000
Additional Capital Improvements Needed to Serve Growth Excluded Debt Adjustment (Excludes Pension Obligation Bonds)
Plus Prior Interest Pymts & Issuance Costs Through 06/30/17 18,897,937 Less Outstanding Principal as of 06/30/17 (12,439,840)
Net Debt Adjustment 6,458,097 49.3% 23.2% 27.5% 100.0%
Allocation 3,182,544 1,496,599 1,778,954 6,458,097
Unrestricted Operating Fund Reserves 06/30/16 3,690,569 50.0% 25.0% 25.0% 100.0% Allocation 1,845,285 922,642 922,642 3,690,569
Total 469,983,221 232,287,340 108,182,287 129,513,594 469,983,221 % of Total 49.4% 23.0% 27.6% 100.0%
Cost Allocation
BARTLE WELLS ASSOCIATES   33
MRWPCA Comprehensive Rate & Fee Study

3.6 Unit Rate Derivation & Capacity Charge per EDU
The  costs  allocated  to  flow,  BOD  and  SS  in  the  prior  table, are  subsequently  divided  by  the  total capacity of each fee component resulting in unit cost for flow, BOD and SS.

Table 11 – Capacity Charge Components

Flow BOD SS
Cost Recovery
Existing Wastewater System Assets $218,839,512 $102,909,796 $122,325,247 10‐Year Capital Improvement Projects (Current $) 8,420,000 2,853,250 4,486,750 Debt Adjustment (Excludes Pension Obligation Bonds) 3,182,544 1,496,599 1,778,954 Unrestricted Operating Fund Reserves 06/30/16 1,845,285 922,642 922,642 ____________  ____________  __________ Total 232,287,340 108,182,287 129,513,594
Projected Service Capacity of Customer Base                                420 18.0                            400 mgd mg/l mg/l
Wastewater Loadings                  18,000,000             23,013,396             21,917,520 gpd  lbs / year lbs / year
Unit Charges $12.90 $4.70 $5.91
per gpd per lb / year per lb / year
BARTLE WELLS ASSOCIATES   34
MRWPCA Comprehensive Rate & Fee Study
These unit costs are applied to the wastewater system capacity requirement of an EDU resulting in an  updated  capacity  charge  of  approximately  $3,389  per  EDU.    This  charge  is  slightly  lower  than MRWPCA’s current charge of about $3,505 per EDU.

Table 12 – Capacity Charge per EDU
The table on the following page shows updated capacity charges for all customer classes.  Capacity charges for major new industrial connections are calculated on a case‐by‐case basis according to the estimated wastewater flow and strength of each connection.

Flow BOD SS TOTAL
Capacity Charge per Unit $12.9049 $4.70 $5.91
per gpd per lbs / year per lbs / year
CAPACITY CHARGE PER EDU
Residential Flow & Strength               150                       300                       300 gpd  mg/l mg/l
Residential Wastewater Loadings 150                                      137                       137 gpd  lbs / year lbs / year
Capacity Charge per EDU $1,935.73 $643.94 $809.46 $3,389.13 % of Capacity Charge per EDU 57.12% 19.00% 23.88%
BARTLE WELLS ASSOCIATES   35
MRWPCA Comprehensive Rate & Fee Study
Table 13 – Proposed Capacity Charges
EDUs Capacity
Customer Class Flow/Unit Flow BOD SS Strength Flow Factor x Charge gpd Factor1 mg/l mg/l Factor2 Strength Factor per Unit

RESIDENTIAL
102/105
107/109 Residential Each living unit 150 1.00 300 300 1.00 1.000 $3,389.13

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government Location/each business 117 0.78 150 150 0.79 0.613 2,076.75 D. 221 Hotel/Motel Each room 66 0.44 310 120 0.86 0.380 1,287.00 E. 222 Bed & Breakfast Inn Each room 43 0.29 310 120 0.86 0.247 838.50 F. 231 Supermarket Location 638 4.25 800 800 1.71 7.293 24,717.09 G. 241 Medical Office Each licensed physician 156 1.04 130 80 0.72 0.746 2,527.96 H. 242 Dental Office Each licensed dentist 215 1.43 130 80 0.72 1.028 3,484.05 I. 243 Rest Home/Convalescent Each bed of licensed capacity 43 0.29 250 100 0.81 0.232 786.11 J. 244 General Hospital Each bed of licensed capacity 256 1.71 250 100 0.81 1.381 4,680.12 K. 245 Animal Hospital Location/each business 292 1.95 250 100 0.81 1.575 5,338.26 L. 261 Restaurant–One Meal Each restaurant seat 6 0.04 1,000 600 1.68 0.067 228.04 262 Restaurant–Two Meals Each restaurant seat 9 0.06 1,000 600 1.68 0.101 342.06 263 Restaurant–Three Meals Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 M. 264 Restaurant w/Bar Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 N. 265 Bar Location/each business 254 1.69 200 200 0.86 1.451 4,918.64 O. 266 Nightclub Location/each business 760 5.07 200 200 0.86 4.342 14,717.20 P. 267 Takeout Food–Small Location/each business 283 1.89 500 300 1.13 2.126 7,204.09 268 Takeout Food–Medium Location/each business 697 4.65 500 300 1.13 5.235 17,742.92 269 Takeout Food–Large Location/each business 1,270 8.47 500 300 1.13 9.539 32,329.29 Q. 270 Bakery Location/each business 230 1.53 1,000 600 1.68 2.579 8,741.49 R. 281 Theater Per screen at each location 377 2.51 150 150 0.79 1.974 6,691.75 S. 282 Bowling Center Location/each business 1,146 7.64 150 150 0.79 6.002 20,341.50 T. 290 Mortuary Location/each business 310 2.07 800 800 1.71 3.544 12,009.87 U. 291 School (Minimum) Each business 117 0.78 150 150 0.79 0.613 2,076.75 292 School (0‐6) School population 2 0.01 130 100 0.73 0.010 33.13 293 School (7‐College) School population 4 0.03 130 100 0.73 0.020 66.26 294 Boarding School School population 40 0.27 233 165 0.85 0.227 768.30 V. 331 Service Station/Repair Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 332 Service Station/Repair (11‐20) Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 W. 353 Dry Cleaners Location/each business 386 2.57 150 150 0.79 2.022 6,851.50 X. 354 Laundromats Each washing machine 102 0.68 150 110 0.75 0.513 1,737.12 Mobile washers 34 0.23 20 150 0.70 0.159 540.25
SPECIAL USERS (Billed Individually)
Separate Billed Industrial/Commercial
Flow ($ per gpd) 1,935.73
BOD ($ per lb / year) 643.94
SS ($ per lb / year) 809.46
1 Flow Factor =  Wastewater Flow in gallons per day (gpd) / 150 2 Strength Factor =  0.5712  +  [0.1900 x BOD strength / 300]  +  [0.2388 x SS strength / 300] With BOD and SS strengths in milligrams per liter (mg/l) Proposed Capacity Charges
Wastewater Flow Wastewater Strength
BARTLE WELLS ASSOCIATES   36
MRWPCA Comprehensive Rate & Fee Study

3.7 Capacity Charge Ordinance:  Purpose of Charge
Pursuant to Government Code, revenues derived from MRWPCA’s capacity charges can only be used for the purpose for which the charges are collected.  In order to maximize flexibility for use of capacity charge revenues, BWA recommends that the ordinance or resolution adopting the updated charges broadly define the purpose of the capacity charge.

3.8 Capacity Charge Credits for Redevelopment
Capacity charges for redevelopment projects and/or expansions should be based on the incremental demand generated from each project.  Under this approach, future redevelopment projects would get credited for the capacity purchased by the prior development.

3.9 Future Fee Adjustments & Updates
In future years, BWA recommends that MRWPCA continue to adjust its capacity charges annually by the change in the ENR Construction Cost Index to keep the charges aligned with future construction cost  inflation.   The  capacity  charge  ordinance  or  resolution  should allow  for  implementation  of  a multi‐year  adjustment  if  MRWPCA  ever  opts  to  temporarily  defer  any  annual  adjustments.

Additionally, BWA  recommends  that capacity charges be independently  reviewed and/or updated approximately once every three to five years.

BARTLE WELLS ASSOCIATES   37
MRWPCA Comprehensive Rate & Fee Study
4 ADDITIONAL FEE & CHARGE UPDATE

4.1 Additional Fees & Charges
In addition to rates and capacity charges, MRWPCA levies a number of additional fees and charges to help recover the cost of providing various services.  Some of these  fees have not been updated in many years while others have been periodically adjusted, but have not been recently reviewed or recalculated.  Many of MRWPCA’s additional fees no longer reflect the cost of providing service.

BWA worked with MRWPCA to develop updated fees and charges designed to reflect the current cost of providing service for which each fee is levied.  Updated fee recommendations were developed with substantial input from MRWPCA staff.

4.2 Legal Requirements
Fees and charges levied by state and local governmental agencies must meet  the requirements of Proposition 26, a Constitutional Amendment that was narrowly approved by California voters on the November 2010 ballot.  Proposition 26 redefines fees and charges levied by local agencies as “taxes”, which are subject to voter approval.  However, Proposition 26 included seven exceptions under which local fees are not considered taxes and are therefore not subject to voter approval.  All of the fees imposed by the District meet one or more of these criteria to be exempted from voter approval as a tax.  These exceptions include:
 A  fee  that is imposed  for a  special  benefit  or  privilege  provided  to an individual,  does  not exceed the reasonable cost of service, and does not provide broad, general benefits to others in the community;
 A fee imposed for a specific government service or product provided directly to the person paying the fee, that does not exceed the reasonable cost of providing service;  A charge imposed for reasonable regulatory costs (i.e. licenses, audits, inspections, permits) that does not exceed the reasonable cost of service;
 Rental or lease fees charged for the use of or entrance to governmental property;  Fines or penalties imposed for violations of the law;  A  charge  imposed as a  condition  of  property  development  (such  charges are  governed  by California Government Code Section 66000 et. seq. with Water and Sewer Capacity Charges governed specifically by Section 66013);
 Assessments and property‐related fees imposed under the provisions of Proposition 218, such as the District’s water and sewer service charges.

BARTLE WELLS ASSOCIATES   38
MRWPCA Comprehensive Rate & Fee Study

4.3 Fee Update Methodology
Updated fees and charges were developed based on a detailed evaluation of the amount of staff time and  materials  required  to  provide  each  type  of  service.    Most  of  the  updated  fees  include  cost recovery for:
 Staff Time & Billable Rates – MRWPCA staff identified the staff positions and amount of time required  for  providing  each  type  of  service.  Billable  rates  per  position  includes  a  fully‐ burdened hourly rate that includes cost recovery for salary and benefits for each position.  In cases where MRWPCA employs multiple people for the same position, the average rate per position was used in the fee update.
 Overhead Allocation – MRWPCA provides a number of administrative and internal support services  through  various  departments  (e.g.  Administration,  Human  Resources,  Finance, Information  Technology,  etc.)    BWA  worked  with MRWPCA  staff  to  evaluate  a  number  of alternative  approaches  for  allocating  these  internal  overhead  costs.    The  updated  fees calculated in this report incorporate a conservative overhead allocation of 16.9% based on the overhead  departments  share  of  total  budgeted  expenses.    The  allocation  excludes  cost recovery for expenses incurred on behalf of the Water Reclamation Authority or other entities.  Materials/Vehicles/Other  Costs  –  A  number  of  fees  include  recovery  for  external  costs incurred for providing each type of service such as materials, vehicles, equipment, printing, postage, and/or fees charged by other entities.  The updated fees include cost recovery for these expenses, without markup.
 Facility  Cost  Recovery  –  Some  fees  include  a  component  for  facility  cost  recovery.    For example, fees for liquid waste haulers include cost recovery for the share of specific facilities required for receiving and processing septage, grease, brine and other types of hauled waste.

These customers were not required to pay capacity charges to buy‐in to MRWPCA facilities.

When applicable,  facility cost  recovery is based on  the current  (ENR‐adjusted) cost  for  the share  of  each  type  of  facility  identified  by  MRWPCA  staff  as  required  for  providing  each service.

Some fees were updated based on an alternative approach including:
 Interruptible  Rates  –  MRWPCA  provides  conveyance  and  treatment  for  various  types  of source waters (e.g. Ag Wash).  This service is mutually beneficial to both MRWPCA and the source water dischargers.  The dischargers benefit via a cost‐effective means for disposal and treatment, while MRWPCA benefits  from access  to additional water supply  for Pure Water Monterey.  These interruptible rates are calculated to recover the marginal (or incremental) BARTLE WELLS ASSOCIATES 39
MRWPCA Comprehensive Rate & Fee Study
cost of collection and treatment of various source waters, essentially a break‐even rate  for MRWPCA.
 Cost of Service Fees ‐ For some fees, the cost of providing service can vary widely each time the  service is provided  (e.g. Lift Station Maintenance).  These  fees do not have a  standard charge and are instead billed on a cost‐of‐service basis each time the service is provided.  For these  types  of  fees,  MRWPCA  tracks  staff  time  and  expenses  incurred  to  ensure  the  fee accurately recovers the cost of service to each customer.

4.4 Updated Fee Recommendations
The  table  on  the  following  page  shows a  schedule  of  current and  updates  fees and  charges.  The proposed fees represent standard fees that would apply in most situations.  In situations requiring additional staff time and costs, MRWPCA should reserve the right to collect additional fees to reflect the actual cost of service on a time and materials basis.

4.5 Future Fee Adjustments & Updates
In future years, BWA recommends that MRWPCA adjust its additional fees and charges annually by the change in the CPI to keep the fees aligned with future cost inflation.  The ordinance or resolution should allow  for implementation  of a multi‐year adjustment if MRWPCA ever  opts  to  temporarily defer any annual adjustments.  Additionally, BWA recommends that MRWPCA’s additional fees and charged be independently reviewed and/or updated approximately once every three to five years.

However, MRWPCA can revise specific fees on a case‐by‐case in between comprehensive fee updates basis when warranted.

BARTLE WELLS ASSOCIATES   40
MRWPCA Comprehensive Rate & Fee Study
Table 14 – Updated Fees & Charges
Fee Description Current Fees Updated Fees
Interruptible Rates
Agricultural Wash Water  $203.83 / Acre foot $242.40  / Acre Foot Blanco Drain $76.34 / Acre foot $94.22  / Acre Foot
Reclamation Ditch  $94.02 / Acre foot $96.58  / Acre Foot Salinas Storm Water  $70.78 / Acre foot $91.26  / Acre Foot Lake El Estero $70.57 / Acre foot $90.88  / Acre Foot
Pond Water (Ag Wash & Stormwater) n/a $95.88  / Acre Foot Tembladero Slough n/a $112.63  / Acre Foot
Fee for Outside Services Cost of service Cost of service Salinas Pond
(User fees are assessed by the City of Salinas)
Cost of service Cost of service
Return Item Fee  $10 / $15 $27.40
+ bank return item fee (currently $17)
Lien Filing Fee  30 $30 per lien
Service Charge Billing Fee: Member Agencies $0.20 per account $0.44 per bill Service Charge Billing Ree: Monterey County $0.93 per account $1.23 per bill Lift Station Maintenance Cost of service Cost of service Industrial Discharge Permit Non‐Compliance Fee  Cost of service Cost of service Liquid Waste Discharge Fees
Liquid Waste (Septage) $0.04 / gallon $0.085 / gallon
Grease $0.11 / gallon $0.11 / gallon
Biocell $0.11 / gallon $0.07 / gallon
Special $0.11 / gallon $0.05 / gallon
Annual Source Control Permit & Inspection Fees Current Classes & Permit Fees ORIU Class A:  $25 $1,865
SIU Class C:  $600 $4,125
CIU $4,125
Annual Liquid Waste Hauler Permit Fee $100 $200
Liquid Waste Deposit $1,000 $1,000 minimum
With discretion to set a higher deposit, such as
for larger customers or accts with delinquencies
Brine (1)
Brine w/Chemicals $0.05 / gallon
All Other Brine Varies from $0.025 to $0.11 $0.035 / gallon Additional fees to the standard fees listed above may apply on a cost of service basis when additional services are provided, such as for dealing with issues, violations, and non‐compliance.
1 Some brine costs are based on an Agreement between MRWPCA and other entities.

Note:  Cost of service includes billable wages and benefits, overhead, materials, vehicle usage, mileage, lab fees, on‐call costs, and other costs directly or indirectly incurred for providing the service for which a fee is charged.

Standard fees and charges are shown above.  Different fees or charges may be levied on case‐by‐case basis to better reflect the actual cost for providing a service, as determined by MRWPCA.

Updated Additional Fees & Charges
APPENDIX A
MRWPCA Financial Plan & Rate Study Tables
Pollution Control Agency
Monterey Regional Water
MRWPCA Financial Plan
& Rate Study Tables
Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Rate Adjustment % 3.26% 10.0% 10.0% 10.0% 8.0% 8.0% 8.0% 2.0% 2.0% 2.0% 2.0% Projected Monthly Residential Charge $15.85 $17.42 $19.15 $21.06 $22.74 $24.56 $26.52 $27.05 $27.59 $28.14 $28.70 Rate Adjustment $ (to Residential Charge) $0.50 $1.57 $1.73 $1.91 $1.68 $1.82 $1.96 $0.53 $0.54 $0.55 $0.56 Residential Billing Equivalents 111,761 111,961 112,111 112,261 112,411 112,561 112,711 112,861 113,011 113,111 113,211Growth (Residential Equivalents) 200 150 150 150 150 150 150 150 100 100 100 Interest Earnings Rate 0.7% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Capacity Charge per Residential Equivalent +2% $3,506 $3,389 $3,457 $3,526 $3,597 $3,669 $3,742 $3,817 $3,893 $3,971 $4,050 Beginning Unrestricted Fund Reserves $3,690,000 $6,845,000 $6,833,000 $6,784,000 $6,797,000 $6,897,000 $7,219,000 $7,595,000 $7,965,000 $8,197,000 $8,421,000 REVENUESWastewater Treatment Charges ‐  21,257,000 23,447,000 25,821,000 28,444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000 Military Wastewater Charges ‐  374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000Liquid Waste & Grease Haulers 2% 630,000 643,000 656,000 669,000 682,000 696,000 710,000 724,000 738,000 753,000 768,000Brine 0% 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000 183,000Interruptible Rates (rate may change) 0% 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 User Penalties/Lien Penals & Trans 0% 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000NSD Agency Billing Fees 0% 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 86,000 Fee for Services ‐ Outside Entities 2% 189,000 193,000 197,000 201,000 205,000 209,000 213,000 217,000 221,000 225,000 230,000Lift Station Maintenance 2% 150,000 153,000 156,000 159,000 162,000 165,000 168,000 171,000 174,000 177,000 181,000WRA Reclamation Indirect Charges 4% 426,000 443,000 461,000 479,000 498,000 518,000 539,000 561,000 583,000 606,000 630,000Pure Water Monterey Indirect Charges 4% 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 410,000 Interest Earnings ‐  30,000 68,000 68,000 68,000 68,000 69,000 72,000 76,000 80,000 82,000 84,000Capacity Charges ‐  700,000 508,000 519,000 529,000 540,000 550,000 561,000 573,000 389,000 397,000 405,000Miscellaneous Income 0% 181,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Revenues 24,996,000 27,038,000 29,761,000 32,444,000 34,825,000 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000SRF Reimbursement to WW 4,000,000EXPENSESOperating & MaintenanceSalaries & Benefits 4% 11,158,000 11,604,000 12,068,000 12,551,000 13,053,000 13,575,000 14,118,000 14,683,000 15,270,000 15,881,000 16,516,000 CalPERS Payments ‐  790,000 947,000 1,219,000 1,516,000 1,809,000 2,109,000 2,369,000 2,464,000 2,563,000 2,666,000 2,773,000Less Sals/Bens Charged to WRA & CIP 4% (1,361,000) (1,415,000) (1,472,000) (1,351,000) (1,405,000) (1,461,000) (1,519,000) (1,580,000) (1,643,000) (1,709,000) (1,777,000)New Positions: Adm Asst/Public Outreach 4% 0 208,000 216,000 225,000 234,000 243,000 253,000 263,000 274,000 285,000 296,000 New Positions: Back from GWR 4% 0 0 0 300,000 312,000 324,000 337,000 350,000 364,000 379,000 394,000 Professional/Contract Svcs/Op Supplies 4% 1,778,000 1,849,000 1,923,000 2,000,000 2,080,000 2,163,000 2,250,000 2,340,000 2,434,000 2,531,000 2,632,000Chemicals 4% 1,454,000 1,512,000 1,572,000 1,635,000 1,700,000 1,768,000 1,839,000 1,913,000 1,990,000 2,070,000 2,153,000 Utilities 4% 2,274,000 2,365,000 2,460,000 2,558,000 2,660,000 2,766,000 2,877,000 2,992,000 3,112,000 3,236,000 3,365,000 Maintenance & Repairs 4% 1,213,000 1,262,000 1,312,000 1,364,000 1,419,000 1,476,000 1,535,000 1,596,000 1,660,000 1,726,000 1,795,000Office Expense/Info Systems/Other 4% 1,092,000 1,136,000 1,181,000 1,228,000 1,277,000 1,328,000 1,381,000 1,436,000 1,493,000 1,553,000 1,615,000Major O&M 4% 460,000 500,000 520,000 541,000 563,000 586,000 609,000 633,000 658,000 684,000 711,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000Debt Service 2006 Wastewater Rev Bonds 127,000 1,024,000 0 0 0 0 0 0 0 0 0 2012 Wastewater Rev Refi Bonds 811,000 843,000 871,000 905,000 941,000 974,000 1,009,000 1,047,000 1,086,000 1,125,000 0 2013 Pension Obligation Bonds 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 0 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 2,251,000 2,182,000 2,096,000 2,034,000 2,077,000 2,130,000 2,166,000 2,153,000 2,140,000 2,153,000 0Capital ImprovementsCapital Improvement Projects 3% 2,710,000 4,400,000 6,200,000 7,300,000 8,400,000 9,500,000 11,000,000 10,800,000 10,500,000 10,200,000 11,500,000CIP Carry‐Forward & GWR Contribution 1,522,000 0 0 0 0 0 0 0 0 0 0 Capitalized Equipment 3% 500,000 500,000 515,000 530,000 546,000 562,000 579,000 596,000 614,000 632,000 651,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Subtotal 4,732,000 4,900,000 6,715,000 7,830,000 8,946,000 10,062,000 11,579,000 11,396,000 11,114,000 10,832,000 12,151,000Total Expenses 25,841,000 27,050,000 29,810,000 32,431,000 34,725,000 37,069,000 39,794,000 40,639,000 41,429,000 42,287,000 42,624,000Revenues Less Expenses 3,155,000 (12,000) (49,000) 13,000 100,000 322,000 376,000 370,000 232,000 224,000 756,000Ending Fund Reserves/Working Capital 6,845,000 6,833,000 6,784,000 6,797,000 6,897,000 7,219,000 7,595,000 7,965,000 8,197,000 8,421,000 9,177,000 Fund Rsrv Target (25% O&M +$2M CIP) 6,710,000 6,990,000 7,250,000 7,640,000 7,930,000 8,220,000 8,510,000 8,770,000 9,040,000 9,330,000 9,620,000 Debt Service Coverage: Wastewater Only 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐ Debt Service Coverage: All Debt 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37 Table 1 ‐ MRWPCA Wastewater Cash Flow Projections
A-1
Esc % 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 REVENUESWastewater Revenues
Wastewater Treatment Charges 21,257,000 23,447,000 25,821,000 28,444,000 30,763,000 33,264,000 35,974,000 36,740,000 37,514,000 38,294,000 39,089,000  Other Wastewater Revenues 3,739,000 3,591,000 3,940,000 4,000,000 4,062,000 4,127,000 4,196,000 4,269,000 4,147,000 4,217,000 4,291,000  Subtotal  24,996,000 27,038,000 29,761,000 32,444,000 34,825,000 37,391,000 40,170,000 41,009,000 41,661,000 42,511,000 43,380,000Reclamation Reimbursements  Operating Reimbursements 4,365,000 4,496,000 4,631,000 4,770,000 4,913,000 5,060,000 5,212,000 5,368,000 5,529,000 5,695,000 5,866,000 Debt Service Reimbursements 1,767,000 1,752,000 1,105,000 1,090,000 1,075,000 1,060,000 1,045,000 1,030,000 1,015,000 1,000,000 985,000 Subtotal  6,132,000 6,248,000 5,736,000 5,860,000 5,988,000 6,120,000 6,257,000 6,398,000 6,544,000 6,695,000 6,851,000Pure Water Monterey Revenues  Water Sales (Cal‐Am) 2% ‐  ‐  6,020,000 6,140,000 6,263,000 6,388,000 6,516,000 6,646,000 6,779,000 6,915,000 7,053,000 Other Revenues 2% ‐  ‐  1,368,000 1,395,000 1,423,000 1,451,000 1,480,000 1,510,000 1,540,000 1,571,000 1,602,000 Subtotal  ‐  ‐  7,388,000 7,535,000 7,686,000 7,839,000 7,996,000 8,156,000 8,319,000 8,486,000 8,655,000Total Revenues 31,128,000 33,286,000 42,885,000 45,839,000 48,499,000 51,350,000 54,423,000 55,563,000 56,524,000 57,692,000 58,886,000 OPERATING EXPENSES
Wastewater O&M 18,858,000 19,968,000 20,999,000 22,567,000 23,702,000 24,877,000 26,049,000 27,090,000 28,175,000 29,302,000 30,473,000 Reclamation O&M 3% 4,365,000 4,496,000 4,631,000 4,770,000 4,913,000 5,060,000 5,212,000 5,368,000 5,529,000 5,695,000 5,866,000 Pure Water Monterey O&M 1.5% ‐  ‐  3,400,000 3,451,000 3,503,000 3,556,000 3,609,000 3,663,000 3,718,000 3,774,000 3,831,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Operating Expenses 23,223,000 24,464,000 29,030,000 30,788,000 32,118,000 33,493,000 34,870,000 36,121,000 37,422,000 38,771,000 40,170,000 NET REVENUES 7,905,000 8,822,000 13,855,000 15,051,000 16,381,000 17,857,000 19,553,000 19,442,000 19,102,000 18,921,000 18,716,000DEBT SERVICE 2006 Bonds (MRWPCA) 127,000 1,024,000 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐ 2012 Bonds (MRWPCA) 811,000 843,000 871,000 905,000 941,000 974,000 1,009,000 1,047,000 1,086,000 1,125,000 ‐ 2013 Bonds (MRWPCA) 1,313,000 315,000 1,225,000 1,129,000 1,136,000 1,156,000 1,157,000 1,106,000 1,054,000 1,028,000 ‐ Future Bonds/Loans (MRWPCA) 00000000000
1999 SRF Loan (SVRP) 632,000 632,000 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐ 2003 USBR Loan (SVRP) 1,135,000 1,120,000 1,105,000 1,090,000 1,075,000 1,060,000 1,045,000 1,030,000 1,015,000 1,000,000 985,000 2017 SRF Loan (PWM) ‐  ‐  3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000  Line of Credit Payments (PWM) 30,000 100,000 ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  ‐  __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Debt Service 4,048,000 4,034,000 6,501,000 6,424,000 6,452,000 6,490,000 6,511,000 6,483,000 6,455,000 6,453,000 4,285,000 DEBT SERVICE COVERAGE
Wastewater Agency 2.73 3.24 4.18 4.86 5.36 5.88 6.52 6.46 6.30 6.14 ‐   Water Reclamation Authority 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00  Pure Water Monterey ‐  ‐  1.21 1.24 1.27 1.30 1.33 1.36 1.39 1.43 1.46 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Debt Service Coverage 1.95 2.19 2.13 2.34 2.54 2.75 3.00 3.00 2.96 2.93 4.37REMAINING NET REVENUES Wastewater Agency 3,887,000 4,888,000 6,666,000 7,843,000 9,046,000 10,384,000 11,955,000 11,766,000 11,346,000 11,056,000 12,907,000 Water Reclamation Authority 00000000000
Pure Water Monterey (30,000) (100,000) 688,000 784,000 883,000 983,000 1,087,000 1,193,000 1,301,000 1,412,000 1,524,000 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Total Remaining Net Revenues 3,857,000 4,788,000 7,354,000 8,627,000 9,929,000 11,367,000 13,042,000 12,959,000 12,647,000 12,468,000 14,431,000 Table 2 ‐ MRWPCA Debt Service Coverage Projections
A-2
Table 3
MRWPCAWastewater Accounts & Loadings
Accounts Billing Flow Flow BOD SS BOD SS
Customer Class (est) Units Units Historical Updated gpd mgd mg/l mg/l lbs lbs RESIDENTIAL 80%
102 Residential 51,778 86,971 189 150 13,045,650 13.05 300 300 11,913,679 11,913,679 Vacant/Minimum Chg 7.7 6.1
COMMERCIAL 80%
001 Business 6,100 8,348 Location/each business 146 117 976,716 0.98 150 150 445,983 445,983 221 Hotel/Motel 156 6,402 Each room 82 66 422,532 0.42 310 120 398,731 154,348222 Bed & Breakfast 13 201 Each room 54 43 8,643 0.01 310 120 8,156 3,157 231 Supermarket 53 53 Location 797 638 33,814 0.03 800 800 82,347 82,347241 Medical office 660 660 Each licensed physician 195 156 102,960 0.10 130 80 40,745 25,074242 Dental Office 231 231 Each licensed dentist 269 215 49,665 0.05 130 80 19,654 12,095243 Rest Home 46 1,852 Each bed of licensed capacity 54 43 79,636 0.08 250 100 60,605 24,242244 Hospital 5 5 Each bed of licensed capacity 320 256 1,280 0.00 250 100 974 390245 Animal Hospital 20 20 Location/each business 365 292 5,840 0.01 250 100 4,444 1,778261 Restaurant 1 meals 37 2,237 Each restaurant seat 7 6 13,422 0.01 1000 600 40,858 24,515 262 Restaurant 2 meals 203 12,183 Each restaurant seat 11 9 109,647 0.11 1000 600 333,776 200,266 263 Restaurant 3 meals 48 3,366 Each restaurant seat 21 17 57,222 0.06 1000 600 174,189 104,514 264 Restaurant w/bar 80 11,895 Each restaurant seat 21 17 202,215 0.20 1000 600 615,563 369,338 265 Bar 37 37 Location/each business 317 254 9,398 0.01 200 200 5,722 5,722266 Night Club 2 2 Location/each business 950 760 1,520 0.00 200 200 925 925267 Take‐Out small 308 308 Location/each business 354 283 87,164 0.09 500 300 132,668 79,601268 Take‐Out medium 62 62 Location/each business 871 697 43,214 0.04 500 300 65,774 39,464 269 Take‐Out large 30 30 Location/each business 1,588 1,270 38,100 0.04 500 300 57,990 34,794270 Bakery 98 98 Location/each business 287 230 22,540 0.02 1000 600 68,614 41,168281 Theatre 11 56 Per screen at each location 471 377 21,112 0.02 150 150 9,640 9,640282 Bowling Center 2 2 Location/each business 1,433 1,146 2,292 0.00 150 150 1,047 1,047 290 Mortuary 7 7 Location/each business 387 310 2,170 0.00 800 800 5,285 5,285 School, Minimum 121 121 Location/each business 146 117 14,157 0.01 150 150 6,464 6,464 292 School K‐5 72 30,446 School population 2 2 60,892 0.06 130 100 24,097 18,536 293 School 6‐college 42 30,016 School population 4 4 120,064 0.12 130 100 47,513 36,549294 Boarding School 7 1,387 School population 40 40 55,480 0.06 233 165 39,351 27,866 331 Garage Repair 236 236 Location/each business 140 112 26,432 0.03 180 280 14,483 22,529 332 Garage Repair (11‐20) 4 4 Location/each business 140 112 448 0.00 180 280 245 382353 Dry Cleaners 18 18 Location/each business 483 386 6,948 0.01 150 150 3,173 3,173 354 Laundromat 17 1,888 Each washing machine 127 102 192,576 0.19 150 110 87,933 64,484211 Vacant/Minimum Chg 853 Location/each business Subtotal Commercial 8,756 2,771,609 2.77 332 219 2,796,949 1,845,673 TOTAL 15,817,259 15.82 306 286 14,710,628 13,759,352
Flow per Unit (gpd)
A-3
Table 4
MRWPCA
Special Wastewater Users & Loadings (Billed Individually)

BOD SS BOD SS
Customer Class Account Accts gpd mgd  mg/l mg/l lbs lbs Special Commercial & Industrial Users
Chevron Ground Water 410 001683013/03‐12087 1                 0.0001 0 0 146 0 0 Community Hospital 401 008132011/03‐7346 1 21,589           0.0216 250 100 16,430 6,572 CSUMB 401 031101001/13‐322 1 59,643           0.0596 233 165 42,303 29,957 Del Monte Meat Company 406 033281024/12‐4304 1 3,224             0.0032 800 800 7,851 7,851 Fairgrounds 407 013221001/03‐9325 1 5,603             0.0056 233 165 3,974 2,814 Golds Gym 407 013312008/03‐9871 1 1,925             0.0019 150 150 879 879 Hospice House 401 001771041/03‐585 1 3,065             0.0031 250 100 2,333 933 In N Out  011401023/10‐001545 1 5,995             0.0060 0 0 In Shape Fitness 013161028/03‐009173 1 5,609             0.0056 150 150 2,561 2,561 Lula Chocolate 259031018/03‐010823 1 343                0.0003 0 0 Marina Civic Center 407 032311002/12‐1627 1                 0.0004 150 150 414 189 189 Meadowbrook 407 012414040/10‐4929 1 598                0.0006 150 150 273 273 Monterey Airport 401 013221020/03‐10915 1 14,717           0.0147 336 251 15,053 11,245 Monterey Aquarium 407 001011001/03‐11814 1 18,150           0.0182 211 198 11,658 10,940 Monterey Aquarium 407 001011001/03‐11815 1 11,036           0.0110 150 150 5,039 5,039 Monterey Aquarium 407 001011001/3‐12110 1                 0.0006 0 0 579 0 0 Monterey Aquarium 032421012/12‐4605 1                 0.0003 0 0 273 0 0 Monterey Conference Cntr 401 001567016/03‐4136 1 3,513             0.0035 1000 600 10,694 6,416 Monterey Fish ‐ Wharf 406 001702001/03‐10703 1 1,039             0.0010 1884 212 5,959 671 Monterey Pen Dialysis 401 013191018/3‐9300 1 5,679             0.0057 130 80 2,247 1,383 Monterey Peninsula Surgery 259‐222‐007/03‐12349 1 2,247             0.0022 0 0 Monterey Salinas Transit 367 259011067/03‐8174 1 968                 0.0010 180 270 530 796 Monterey Sports Cntr 407 001707005/3‐5324 1 11,501          0.0115 150 150 5,252 5,252 Monterey Youth Center 407 001994001/03‐7304 1 713                 0.0007 150 150 326 326 National Custom Packing 406 133491034/99‐1435 1 8,534            0.0085 1371 1901 35,616 49,385 Ocean Mist Farms 406 030301009/99‐1619 1 45,148           0.0451 30 249 4,123 34,221 Oldemeyer Center 407 012371058/10‐4498 1 2,054             0.0021 150 150 938 938 Pattulo Swim Center 407 012381018/10‐4507 1 3,219             0.0032 150 150 1,470 1,470 Petsmart 401 011011045/11‐877 1 1,469             0.0015 150 150 671 671 Rayne Monterey 012182005/10‐002795 1 1,121             0.0011 0 0 0 Sea Harvest 406 133241018/98‐1278 1 1,631             0.0016 1884 212 9,354 1,053 Steinbeck Plaza 401 001023017/3‐11813 1 222                 0.0002 0 0 0 0 YMCA 407 001728003/03‐5517 1 203                 0.0002 150 150 93 93 A‐1 Moving 401 177141063/15‐13344 1 1,571             0.0016 0 0 0 0 Boys And Girls Club 407 003231002/5‐16756 1 2,162             0.0022 130 100 856 658 Bread Box Rec Center 407 004611004/5‐16577 1 234                 0.0002 150 150 107 107 Broadway Bingo 407 003631027/5‐12344 1 761                 0.0008 150 150 347 347 Cammachos Food Processing 406 177141071/15‐10286 1 300                0.0003 2231 1453 2,037 1,327 Coca‐Cola 410 002155025/05‐16573 1 1,856             0.0019 0 1624 0 9,175 Culligan 405 002061027/5‐16578 1 14,572           0.0146 3 55 133 2,440 Davita Corp 261716015/15017238 1 6,454             0.0065 130 80 2,554 1,572 Dayton Street Cooling 401 177141059/15‐017947 1 146                 0.0001 0 0 0 0 Easton 401 177181023/15‐15998 1 500                 0.0005 30 249 46 379 Go Kids Inc 407 003861014/5‐10234 1 1,138             0.0011 150 150 520 520 Golds Gym 153621005/15‐17592 1 1,207             0.0012 150 150 551 551 Hartnell College 401 002281099/05‐1838 1 12,778           0.0128 130 100 5,057 3,890 Hibino Farms 406 003161018/05‐6740 1 2,073             0.0021 143 324 902 2,045 Jack & The Bean Stalk Tofu 003171025/05‐16846 1 251                 0.0003 0 0 0 0 Jack & The Bean Stalk Sprout 003171025/05‐16851 1 9,414             0.0094 0 0 0 0 In‐N‐Out Burger 401 003‐092‐002/05‐6384 1 5,435             0.0054 500 300 8,272 4,963 In Shape Fitness 401 261711032/15‐006462 1 7,413             0.0074 150 150 3,385 3,385 Natividad 401 003851018/05‐10222 1 64,933           0.0649 250 100 49,416 19,766 NH3 410 002751009/05‐5462 1 5,641             0.0056 0 0 0 0 Petsmart 401 261‐146‐004/15‐15048 1 1,261             0.0013 150 150 576 576 Flow
A-4
Table 4
MRWPCA
Special Wastewater Users & Loadings (Billed Individually)

BOD SS BOD SS
Customer Class Account Accts gpd mgd  mg/l mg/l lbs lbs Flow
Pilot Center 401 003461010/5‐16680 1 15,360           0.0154 150 150 7,014 7,014 Quinn Company 367 002‐952‐001/5‐16649 1 3,030             0.0030 180 270 1,660 2,490 Rodeo Grounds 407 003‐231‐002/05‐16651 1 2,567             0.0026 150 150 1,172 1,172 Salinas Airport 401 003863036/05‐10248 1 4,171             0.0042 483 326 6,133 4,139 Salinas Tallow 408 003011045/05‐6082 1 8,282             0.0083 3186 341 80,323 8,597 Salinas Valley Aquatics 407 002231002/05‐16650 1 5,921             0.0059 150 150 2,704 2,704 Salinas Valley Cooling 410 003461006/05‐16684 1 6,415             0.0064 47 51 918 996 Salinas Valley Dialysis 401 016233001/15‐9193 1 6,204             0.0062 130 80 2,455 1,511 Salinas Valley Memorial 401 002711002/05‐5323 1 48,295          0.0483 250 100 36,754 14,701 Semco 401 177191010/15‐12969 1 2,873             0.0029 47 71 411 621 Shell (GW) 401 003084040/05‐16748 1                 ‐       0 0 ‐ 0 0 Soilserv 403 002821009/05‐5520 1 6,394             0.0064 36 44 701 856 Sabor Farms LLC 406 003581013/05‐016958 1 33,546           0.0335 438 2523 44,727 257,642 Tosca 177181001/15‐10919 1 10,309           0.0103 0 0
Valley Weigh & Wash 367 003591019/5‐16702 1 4,915             0.0049 180 270 2,693 4,040 West Valley 367 261031014/15‐10465 1                 0.0001 180 270 146 80 120 Western Farm Service 410 003471030/05‐16239 1                 0.0001 0 0 120 0 0 Ymca 407 002401014/05‐2836 1 5,829             0.0058 56 51 994 905 Arco Car Wash 366 253331019/15‐14229 1 3,605             0.0036 20 150 219 1,646 Arco Car Wash/Work St 366 003461014/05‐16774 1 5,763             0.0058 20 150 351 2,631 Castroville 366 030253006/99‐954 1                 0.0009 20 150 867 53 396 Circle K (Alco) 153481021/15‐11680 1 2,248             0.0022 20 150 137 1,026 Chevron 366 032171009/12‐861 1 5,445             0.0054 20 150 332 2,486 Chevron/Salinas 366 253062002/15‐835 1 7,675             0.0077 20 150 467 3,505 Chevron 366 261145043/15‐12795 1 10,312           0.0103 20 150 628 4,709 Del Rey Car Wash 366 012471017/09‐833 1 3,207             0.0032 20 150 195 1,464 Ebbs 366 013171008/03‐9177 1 1,257             0.0013 20 150 77 574 El Estero 366 001733008/03‐5592 1 6,327             0.0063 20 150 385 2,889 King Klean 366 003381006/05‐15925 1 1,664             0.0017 20 150 101 760 Marina Car Wash 366 032312033/12‐1654 1 1,008             0.0010 20 150 61 460 Oasis Car Wash 366 030166001/99‐1438 1                 0.0002 20 150 168 10 77 Oil Can Henry'S 366 261711065/15‐10898 1 1,892             0.0019 20 150 115 864 Salinas Car Wash 366 003143011/05‐6608 1 4,358            0.0044 20 150 265 1,990 Shell ‐ Marina 032421001/12‐002524 1 2,003             0.0020 20 150 122 915 Shell ‐ Salinas (E) 366 004611017/05‐14363 1 2,646             0.0026 20 150 161 1,208 Shell ‐ Salinas (S) 366 207101026/15‐11874 1 4,950             0.0050 20 150 301 2,260 Shell ‐ Salinas (N) 366 211232023/15‐11632 1 4,111             0.0041 20 150 250 1,877 Shell ‐ Salinas N Main 003201013/05‐016972 1 1,780             0.0018 20 150 108 813 Shell ‐ Seaside 366 011561026/10‐2031 1 5,387             0.0054 20 150 328 2,460 Sofa Spray 366 003041031/05‐6167 1 1,533             0.0015 20 150 93 700 Soft Spray 366 003891019/05‐10409 1 2,284             0.0023 20 150 139 1,043 Splash Car Wash 366 002‐761012/05‐5484 1 12,649           0.0126 20 50 770 1,925 Star 366 004601031/05‐14295 1 1,670             0.0017 20 150 102 763 35 Cents 366 011555003/10‐1967 1 1,848             0.0018 20 150 113 844 Ultra 366 011011038/11‐893 1 2,627             0.0026 20 150 160 1,200 Villa Hand Car Wash 366 207091018/15‐326 1 4,439             0.0044 20 150 270 2,027 Asilomar 361 006601001/04‐4256 1 20,319           0.0203 500 600 30,927 37,112 Bay Park 361 001761050/03‐5890 1 6,901             0.0069 500 600 10,504 12,604 Casa Munras 361 001681038/03‐5090 1 13,696           0.0137 500 600 20,846 25,015 Clement The 001‐012‐017/03‐00071 1 24,032          0.0240 500 600 36,578 43,893 Embassy Suites 361 011401031/10‐7343 1 32,646           0.0326 500 600 49,689 59,627 Hilton Inn 361 001781021/03‐6042 1 21,176           0.0212 500 600 32,231 38,677 Hyatt Del Monte 361 013211015/03‐9313 1 17,240          0.0172 500 600 26,240 31,488 Monterey Beach Hotel 361 011422017/03‐7445 1 26,330           0.0263 500 600 40,076 48,091 Monterey Marriott 361 001384003/03‐3245 1 18,912           0.0189 489 487 28,152 28,037 A-5
Table 4
MRWPCA
Special Wastewater Users & Loadings (Billed Individually)

BOD SS BOD SS
Customer Class Account Accts gpd mgd  mg/l mg/l lbs lbs Flow
Monterey Plaza 361 001031011/03‐272 1 33,733           0.0337 500 600 51,343 61,612 Portola Plaza 361 001567019/03‐4139 1 40,339           0.0403 500 600 61,398 73,678 Del Mar French 351 001704002/03‐5309 1 6,853             0.0069 133 143 2,775 2,983 Mission Linen 351 002051002/05‐104 1 57,836           0.0578 713 365 125,530 64,261 Mission Uniform 351 003083017/05‐6355 1 27,616           0.0276 207 177 17,402 14,880 Di Maggio'S Classic 006234008/04001621 1 1,329             0.0013 0 0 Economy 352 011011029/11‐839 1 1,141             0.0011 450 240 1,563 834 Ideal  352 002914005/05‐5761 1                 0.0008 450 240 1,067 569 779 Market 352 002164008/05‐826 1                 0.0010 450 240 1,364 728 996 Quality Drive Thru 352 207101038/15‐335 1 1,017            0.0010 450 240 1,393 743 Vapor  352 001852016/3‐6591 1 1,667             0.0017 450 240 2,284 1,218 Total 120 1,004,928     1.0049 326 370 996,986 1,130,695 Source:  Flow data from calendary year 2016.

A-6
Table 5
MRWPCA
Projected Expenses by Department
Cost Budget
Department Escalation 2016/17 2017/18  2018/19  2019/20 Operating & Maintenance
10 Administration 4% $1,188,000 $1,236,000 $1,285,000 $1,336,000 New: Admin Asst/Public Outreach 4% 0 208,000 216,000 225,000 New Positions: Back from GWR 4% 0 0 0 70,000
11 Human Resources 4% 412,000 428,000 445,000 463,000
12 Customer Service 4% 909,000 945,000 983,000 1,022,000 13 Finance 4% 1,046,000 1,088,000 1,132,000 1,177,000
14 Engineering  Services 4% 990,000 1,030,000 1,071,000 1,114,000 New Positions: Back from GWR 4% 0 0 0 230,000
Reduction in Sal/Bens from WRA 0 0 0 180,000
15 Information Services 4% 423,000 440,000 458,000 476,000 16 Safety 4% 305,000 317,000 330,000 343,000
20 Boad of Directors 4% 56,000 58,000 60,000 62,000
25 Environmental Services 4% 1,223,000 1,272,000 1,323,000 1,376,000 30 RTP Administration 4% 388,000 404,000 420,000 437,000 32 Field Maintenance 4% 3,295,000 3,427,000 3,564,000 3,707,000 35 Plant Maintenance 4% 2,292,000 2,384,000 2,479,000 2,578,000 37 Cogen 4% 1,029,000 1,070,000 1,113,000 1,158,000
39 Utilities 4% 848,000 882,000 917,000 954,000
40 Operations 4% 3,994,000 4,154,000 4,320,000 4,493,000 Add'l CalPERS Payments 0 125,000 363,000 625,000
Major O&M 4% __________ 460,000 __________ 500,000 520,000 541,000 __________ __________ Subtotal 18,858,000 19,968,000 20,999,000 22,567,000
Debt Service
2006 Wastewater Rev Bonds 127,000 1,024,000 0 0
2012 Wastewater Rev Refi Bonds 811,000 843,000 871,000 905,000 2013 Pension Obligation Bonds 1,313,000 315,000 1,225,000 1,129,000 __________ __________ __________ __________ Subtotal 2,251,000 2,182,000 2,096,000 2,034,000
Capital Improvements
Capital Improvement Projects 4,232,000 4,400,000 6,200,000 7,300,000 Capitalized Equipment 500,000 500,000 515,000 530,000 __________ __________ __________ __________ Subtotal 4,732,000 4,900,000 6,715,000 7,830,000
Total Expenses 25,841,000 27,050,000 29,810,000 32,431,000 Projected Expenses
A-7
Table 6
MRWPCA
Allocation of CalPERS Contributions by Department
Budget % of
2016/17 Total 2017/18  2018/19  2019/20
Add'l CalPERS Funding Needs 125,000 363,000 625,000
Allocation of CalPERS Contribution by Department
10 Administration 35,800 4.8% 6,062 17,605 30,312
11 Human Resources 17,200 2.3% 2,913 8,458 14,563
12 Customer Service 43,800 5.9% 7,417 21,539 37,085
13 Finance 51,200 6.9% 8,670 25,178 43,351
14 Engineering  Services 76,200 10.3% 12,904 37,472 64,518 15 Information Services 13,400 1.8% 2,269 6,590 11,346
16 Safety 12,800 1.7% 2,168 6,295 10,838
20 Boad of Directors 0 0.0% 0 0 0
25 Environmental Services 73,300 9.9% 12,413 36,046 62,063 30 RTP Administration 18,800 2.5% 3,184 9,245 15,918
32 Field Maintenance 36,800 5.0% 6,232 18,097 31,158
35 Plant Maintenance 109,500 14.8% 18,543 53,848 92,713 37 Cogen 22,400 3.0% 3,793 11,015 18,966
39 Utilities 36,400 4.9% 6,164 17,900 30,820
40 Operations 190,563 25.8% 32,270 93,712 161,349
Total 738,163 100.0% 125,000 363,000 625,000
Allocation of CalPERS Increase
A-8
Table 7
MRWPCA
Operating Expense Allocation by Department
Projected Additional Total
2019/20 CalPERS 2019/20
Expenses Contribution Expenses
Operating & Maintenance Expenses by Department
Administration $1,336,000 $30,000 $1,366,000
New: Admin Asst/Public Outreach 225,000 0 225,000
New Positions: Back from GWR 70,000 0 70,000
Human Resources 463,000 15,000 478,000
Customer Service 1,022,000 37,000 1,059,000
Finance 1,177,000 43,000 1,220,000
Engineering  Services 1,114,000 65,000 1,179,000
New Positions: Back from GWR 230,000 0 230,000
Reduction in Sal/Bens from WRA 180,000 0 180,000
Information Services 476,000 11,000 487,000
Safety 343,000 11,000 354,000
Boad of Directors 62,000 0 62,000
Environmental Services 1,376,000 62,000 1,438,000
RTP Administration 437,000 16,000 453,000
Field Maintenance 3,707,000 31,000 3,738,000
Plant Maintenance 2,578,000 93,000 2,671,000
Cogen 1,158,000 19,000 1,177,000
Utilities 954,000 31,000 985,000
Operations 4,493,000 161,000 4,654,000
Major O&M 541,000 0 541,000 __________ __________ __________ Total 21,942,000 625,000 22,567,000
A-9
Table 8
MRWPCA
Cost Allocation 2019/20
Dept Title 2019/20  Cust Svc Flow BOD SS Cust Svc Flow BOD SS Operating & Maintenance
Administration $1,366,000 0% 60% 20% 20% $0 $819,600 $273,200 $273,200 New: Admin Asst/Public Outreach 225,000 0% 60% 20% 20% 0 135,000 45,000 45,000 New Positions: Back from GWR 70,000 0% 60% 20% 20% 0 42,000 14,000 14,000 Human Resources 478,000 5% 60% 15% 20% 23,900 286,800 71,700 95,600 Customer Service 1,059,000 100% 0% 0% 0% 1,059,000000
Finance 1,220,000 5% 60% 15% 20% 61,000 732,000 183,000 244,000 Engineering  Services 1,179,000 0% 53% 34% 13% 0 624,870 400,860 153,270 New Positions: Back from GWR 230,000 0% 53% 34% 13% 0 121,900 78,200 29,900 Reduction in Sal/Bens from WRA 180,000 0% 40% 30% 30% 0 72,000 54,000 54,000 Information Services 487,000 5% 35% 30% 30% 24,350 170,450 146,100 146,100 Safety 354,000 0% 40% 30% 30% 0 141,600 106,200 106,200 Boad of Directors 62,000 0% 60% 20% 20% 0 37,200 12,400 12,400 Environmental Services 1,438,000 0% 10% 40% 50% 0 143,800 575,200 719,000 RTP Administration 453,000 0% 60% 20% 20% 0 271,800 90,600 90,600 Field Maintenance 3,738,000 0% 100% 0% 0% 0 3,738,000 0 0 Plant Maintenance 2,671,000 0% 55% 25% 20% 0 1,469,050 667,750 534,200 Cogen (net allocation) 1,177,000 0% 50% 25% 25% 0 588,500 294,250 294,250 Utilities 985,000 0% 40% 25% 35% 0 394,000 246,250 344,750 Operations 4,654,000 0% 55% 25% 20% 0 2,559,700 1,163,500 930,800 Major O&M _________ 541,000_ ____0% 50% 25% 25% 0 270,500 135,250 135,250 _ _____ _____ _____ __________ __________ __________ __________ Subtotal 22,567,000 5.2% 55.9% 20.2% 18.7% 1,168,250 12,618,770 4,557,460 4,222,520 Debt Service
2006 Wastewater Rev Bonds 0 0% 60% 25% 15% 0 0 0 0
2012 Wastewater Rev Refi Bonds 905,000 0% 60% 25% 15% 0 543,000 226,250 135,750 2013 Pension Obligation Bonds _________ 1,129,000_ ____5% 55% 20% 20% 56,450 620,950 225,800 225,800 _ _____ _____ _____ __________ __________ __________ __________ Subtotal 2,034,000 2.8% 57.2% 22.2% 17.8% 56,450 1,163,950 452,050 361,550 Capital Improvements
Capital Improvement Projects 7,300,000 0% 53% 34% 13% 0 3,869,000 2,482,000 949,000 Capitalized Equipment _________ 530,000_ ____0% 88% 5% 7% _ _____ _____ _____ __________0 466,400 26,500 37,100 __________ __________ __________ Subtotal 7,830,000 0.0% 55.4% 32.0% 12.6% 0 4,335,400 2,508,500 986,100 Total Expenses 32,431,000 3.8% 55.9% 23.2% 17.2% 1,224,700 18,118,120 7,518,010 5,570,170 Revenue Offsets
Liquid Waste & Grease Haulers 669,000 0% 5% 75% 20% 0 33,450 501,750 133,800 Military Wastewater 374,000 0% 50% 20% 30% 0 187,000 74,800 112,200 Brine 183,000 0% 100% 0% 0% 0 183,000 0 0
Interruptible Rates  365,000 0% 50% 20% 30% 0 182,500 73,000 109,500 User Penalties/Lien Penals & Trans 425,000 0% 50% 25% 25% 0 212,500 106,250 106,250 NSD Agency Billing Fees 86,000 100% 0% 0% 0% 86,000000
Fee for Services ‐ Outside Entities 201,000 100% 0% 0% 0% 201,000000 Lift Station Maintenance 159,000 5% 95% 0% 0% 7,950 151,050 0 0 WRA Reclamation Indirect Charges 479,000 0% 50% 20% 30% 0 239,500 95,800 143,700 Pure Water Monterey Indirect Charges 312,000 0% 50% 20% 30% 0 156,000 62,400 93,600 Interest 68,000 0% 60% 20% 20% 0 40,800 13,600 13,600
Capacity Charges 529,000 0% 40% 30% 30% 0 211,600 158,700 158,700 Miscellaneous Income __________ 150,000 0% 50% 25% 25% _____ _____ _____ _____ __________0 75,000 37,500 37,500 __________ __________ __________ Total 4,000,000 7.4% 41.8% 28.1% 22.7% 294,950 1,672,400 1,123,800 908,850 Total Expenses 32,431,000 3.8% 55.9% 23.2% 17.2% 1,224,700 18,118,120 7,518,010 5,570,170 Revenue Offsets (4,000,000) 7.4% 41.8% 28.1% 22.7% (294,950) (1,672,400) (1,123,800) (908,850) Fund Reserve/Contingency _________ 13,000 3.8% 55.9% 23.2% 17.2% 491 7,263 3,014 2 _ _____ _____ _____ _____ __________ __________ __________ _________ ,233_ Total 28,444,000 3.3% 57.8% 22.5% 16.4% 930,241 16,452,983 6,397,224 4,663,553 Cost Allocation % Cost Allocation $
Table 9
MRWPCA
Cost Allocation 2019/20
Cust Svc/Accts Flow BOD SS Total
2019/20 Rate Recovery $930,241 $16,452,983 $6,397,224 $4,663,553 $28,444,000

3.27% 57.84% 22.49% 16.40% 100.00%
Billing Units for Cost Recovery
Residential 13,045,650 13,045,650 11,913,679 11,913,679 Commercial 2,771,609 2,771,609 2,796,949 1,845,673
Special Users 1,004,928 1,004,928 996,986 1,130,695
Growth (Res Equivs) 67,500 67,500 56,506 56,506 __________ __________ __________ __________ Total 16,889,687 16,889,687 15,764,121 14,946,554
gpd  gpd  lbs  lbs
Cost per Unit $0.0551 $0.9741 $0.4058 $0.3120
per gpd per gpd  per lb  per lb
Cost per Unit for Special User Formula
Included> $1,029,221 $1,235 $950
per mgd per BOD x mgd  per SS x mgd
Table 10 ‐ Rate Deriviation 2019/20
Accounts Billing Flow/Unit BOD SS Flow BOD SS
Customer Class (Est) Units gpd mg/l mg/l gpd lbs lbs

RESIDENTIAL
102/105107/109 Residential (with Growth) 52,228 87,421 Each living unit 150 300 300 13,045,650 137 137 SUBTOTAL 52,228 87,421 13,045,650 11,913,679 11,913,679

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 6,100 8,348 Location/each business 117 150 150 976,716 53 53 D. 221 Hotel/Motel 156 6,402 Each room 66 310 120 422,532 62 24 E. 222 Bed & Breakfast Inn 13 201 Each room 43 310 120 8,643 41 16 F. 231 Supermarket 53 53 Location 638 800 800 33,814 1,554 1,554 G. 241 Medical Office 660 660 Each licensed physician 156 130 80 102,960 62 38 H. 242 Dental Office 231 231 Each licensed dentist 215 130 80 49,665 85 52 I. 243 Rest Home/Convalescent 46 1,852 Each bed of licensed capacity 43 250 100 79,636 33 13 J. 244 General Hospital 55 Each bed of licensed capacity 256 250 100 1,280 195 78 K. 245 Animal Hospital 20 20 Location/each business 292 250 100 5,840 222 89 L. 261 Restaurant–One Meal 37 2,237 Each restaurant seat 6 1,000 600 13,422 18 11 262 Restaurant–Two Meals 203 12,183 Each restaurant seat 9 1,000 600 109,647 27 16263 Restaurant–Three Meals 48 3,366 Each restaurant seat 17 1,000 600 57,222 52 31 M. 264 Restaurant w/Bar 80 11,895 Each restaurant seat 17 1,000 600 202,215 52 31 N. 265 Bar 37 37 Location/each business 254 200 200 9,398 155 155 O. 266 Nightclub 22 Location/each business 760 200 200 1,520 463 463 P. 267 Takeout Food–Small 308 308 Location/each business 283 500 300 87,164 431 258 268 Takeout Food–Medium 62 62 Location/each business 697 500 300 43,214 1,061 637 269 Takeout Food–Large 30 30 Location/each business 1,270 500 300 38,100 1,933 1,160 Q. 270 Bakery 98 98 Location/each business 230 1,000 600 22,540 700 420 R. 281 Theater 11 56 Per screen at each location 377 150 150 21,112 172 172 S. 282 Bowling Center 22 Location/each business 1,146 150 150 2,292 523 523 T. 290 Mortuary 77 Location/each business 310 800 800 2,170 755 755 U. 291 School (Minimum) 121 121 Each business 117 150 150 14,157 53 53 292 School (0‐6) 72 30,446 School population 2 130 100 60,892 1 1293 School (7‐College) 42 30,016 School population 4 130 100 120,064 2 1294 Boarding School 7 1,387 School population 40 233 165 55,480 28 20 V. 331 Service Station/Repair 236 236 Location/each business 112 180 280 26,432 61 95 332 Service Station/Repair (11‐20) 44 Location/each business 112 180 280 448 61 95 W. 353 Dry Cleaners 18 18 Location/each business 386 150 150 6,948 176 176 X. 354 Laundromats 17 1,888 Each washing machine 102 150 110 192,576 47 34 Mobile washers Mobile washers 34 20 150 34 2 16
SUBTOTAL 8,726 332 219 2,771,609 2,796,949 1,845,673
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm 120 120 2,753 326 370 1,004,928 996,986 1,130,695 Special Unit Rates     Flow ($ per mgd) 1.005     BOD ($ per BOD x mgd) 326     SS ($ per SS x mgd) 370     Cust Svc ($ per account) SUBTOTAL 120 120 329 326 370 1,004,928 996,986 1,130,695 TOTAL 61,074 16,822,187 15,707,614 14,890,048
Table 10 ‐ Rate Deriviation 2019/20
Customer ClassRESIDENTIAL
102/105107/109 Residential (with Growth)

SUBTOTAL

COMMERCIAL/INSTITUTIONAL
A. 001 Business/GovernmentD. 221 Hotel/Motel
E. 222 Bed & Breakfast Inn
F. 231 Supermarket
G. 241 Medical Office
H. 242 Dental Office
I. 243 Rest Home/Convalescent
J. 244 General Hospital
K. 245 Animal Hospital
L. 261 Restaurant–One Meal
262 Restaurant–Two Meals263 Restaurant–Three Meals
M. 264 Restaurant w/Bar
N. 265 Bar
O. 266 Nightclub
P. 267 Takeout Food–Small
268 Takeout Food–Medium269 Takeout Food–Large
Q. 270 Bakery
R. 281 Theater
S. 282 Bowling CenterT. 290 Mortuary
U. 291 School (Minimum)
292 School (0‐6)293 School (7‐College)294 Boarding School V. 331 Service Station/Repair
332 Service Station/Repair (11‐20)
W. 353 Dry Cleaners
X. 354 Laundromats
Mobile washers

SUBTOTAL
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm  Special Unit Rates     Flow ($ per mgd)     BOD ($ per BOD x mgd)     SS ($ per SS x mgd)     Cust Svc ($ per account)

SUBTOTAL
TOTAL
Flow BOD SS Cust Svc Projected
$0.9741 $0.4058 $0.3120 $0.0551 Annual Monthly 2019/20
per gpd  per lb  per lb  per gpd Charge Charge Revenues $146.12 $55.59 $42.74 $8.27 $252.71 $21.06 $22,093,035
12,707,768 4,834,571 3,717,068 718,815 22,091,940 1,840,995 22,093,035 113.97 21.68 16.67 6.45 158.76 13.23 1,325,328

64.29 25.27 7.52 3.64 100.72 8.39 644,55341.89 16.47 4.90 2.37 65.62 5.47 13,194 621.48 630.49 484.76 35.15 1,771.88 147.66 93,912151.96 25.05 11.85 8.60 197.46 16.45 130,284209.43 34.53 16.34 11.85 272.14 22.68 62,869

41.89 13.28 4.08 2.37 61.62 5.13 114,009
249.37 79.06 24.31 14.11 366.85 30.57 1,834284.44 90.18 27.73 16.09 418.44 34.87 8,369

5.84 7.41 3.42 0.33 17.01 1.42 38,118

8.77 11.12 5.13 0.50 25.51 2.13 311,397

16.56 21.00 9.69 0.94 48.18 4.02 162,37616.56 21.00 9.69 0.94 48.18 4.02 573,815 247.42 62.75 48.25 14.00 372.42 31.03 13,777740.32 187.76 144.36 41.88 1,114.32 92.86 2,229275.67 174.79 80.63 15.59 546.69 45.56 168,390678.95 430.50 198.59 38.40 1,346.45 112.20 83,477 1,237.11 784.41 361.86 69.98 2,453.36 204.45 73,602
224.04 284.12 131.07 12.67 651.90 54.33 63,892367.24 69.86 53.71 20.77 511.57 42.63 28,647 1,116.32 212.35 163.26 63.14 1,555.07 129.59 3,110
301.97 306.35 235.54 17.08 860.95 71.75 6,027113.97 21.68 16.67 6.45 158.76 13.23 19,210

1.95 0.32 0.19 0.11 2.57 0.21 76,7243.90 0.64 0.38 0.22 5.14 0.43 154,883

38.96 11.51 6.27 2.20 58.95 4.91 81,722
109.10 24.90 29.78 6.17 169.96 14.16 40,101109.10 24.90 29.78 6.17 169.96 14.16 680376.00 71.52 54.99 21.27 523.79 43.65 9,428

99.36 18.90 10.66 5.62 134.53 11.21 253,97433.12 0.84 4.84 1.87 40.68 2,699,824 1,135,002 575,850 152,716 4,563,392 380,282.68 4,559,931 978,900 404,577 352,777 4,614 1,740,869 145,072 1,740,869 978,900 404,577 352,777 1,740,869 varies  1,740,869
28,396,201 varies  28,393,835
Projected 2019/20 Charges
Table 11 ‐ Projected Rates
Accounts Billing
Customer Class (Est) Units Current July 1 July 1 July 1 Rates 2017 2018 2019 $ Annual %

RESIDENTIAL
102/105107/109 Residential (with Growth) 52,228 87,421 Each living unit $15.85 $17.42 $19.15 $21.06 $5.21 9.9% SUBTOTAL 52,228 87,421 1.57 1.73 1.91

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 6,100 8,348 Location/each business 10.75 11.52 12.35 13.23 2.48 7.2% D. 221 Hotel/Motel 156 6,402 Each room 6.70 7.22 7.78 8.39 1.69 7.8% E. 222 Bed & Breakfast Inn 13 201 Each room 4.45 4.77 5.11 5.47 1.02 7.1%F. 231 Supermarket 53 53 Location 107.00 119.13 132.63 147.66 40.66 11.3% G. 241 Medical Office 660 660 Each licensed physician 13.75 14.60 15.50 16.45 2.70 6.2%H. 242 Dental Office 231 231 Each licensed dentist 18.80 20.01 21.30 22.68 3.88 6.5% I. 243 Rest Home/Convalescent 46 1,852 Each bed of licensed capa 4.20 4.49 4.80 5.13 0.93 6.9% J. 244 General Hospital 55 Each bed of licensed capa 24.70 26.52 28.47 30.57 5.87 7.4% K. 245 Animal Hospital 20 20 Location/each business 28.55 30.52 32.62 34.87 6.32 6.9% L. 261 Restaurant–One Meal 37 2,237 Each restaurant seat 1.05 1.16 1.28 1.42 0.37 10.6% 262 Restaurant–Two Meals 203 12,183 Each restaurant seat 1.55 1.72 1.91 2.13 0.58 11.2% 263 Restaurant–Three Meals 48 3,366 Each restaurant seat 3.00 3.31 3.65 4.02 1.02 10.2% M. 264 Restaurant w/Bar 80 11,895 Each restaurant seat 3.00 3.31 3.65 4.02 1.02 10.2% N. 265 Bar 37 37 Location/each business 24.60 26.58 28.72 31.03 6.43 8.0%O. 266 Nightclub 22 Location/each business 73.05 79.13 85.72 92.86 19.81 8.3% P. 267 Takeout Food–Small 308 308 Location/each business 35.65 38.69 41.99 45.56 9.91 8.5% 268 Takeout Food–Medium 62 62 Location/each business 87.20 94.84 103.15 112.20 25.00 8.8%269 Takeout Food–Large 30 30 Location/each business 159.00 172.90 188.01 204.45 45.45 8.7% Q. 270 Bakery 98 98 Location/each business 41.20 45.18 49.54 54.33 13.13 9.7% R. 281 Theater 11 56 Per screen at each locatio 33.85 36.55 39.47 42.63 8.78 8.0% S. 282 Bowling Center 22 Location/each business 103.00 111.19 120.04 129.59 26.59 8.0% T. 290 Mortuary 77 Location/each business 52.25 58.08 64.56 71.75 19.50 11.2% U. 291 School (Minimum) 121 121 Each business 10.75 11.52 12.35 13.23 2.48 7.2% 292 School (0‐6) 72 30,446 School population 0.13 0.15 0.18 0.21 0.08 17.3%293 School (7‐College) 42 30,016 School population 0.28 0.32 0.37 0.43 0.15 15.4%294 Boarding School 7 1,387 School population 3.25 3.73 4.28 4.91 1.66 14.7% V. 331 Service Station/Repair 236 236 Location/each business 11.20 12.11 13.09 14.16 2.96 8.1% 332 Service Station/Repair (11‐20) 44 Location/each business 11.20 12.11 13.09 14.16 2.96 8.1% W. 353 Dry Cleaners 18 18 Location/each business 35.05 37.71 40.57 43.65 8.60 7.6% X. 354 Laundromats 17 1,888 Each washing machine 9.00 9.68 10.42 11.21 2.21 7.6% 416 Mobile Washers Each mobile washer/year 25.00 29.40 34.58 40.68 15.68 17.6% SUBTOTAL 8,726
SPECIAL USERS (Billed Individually)
Separate Billed Ind/Comm 120 120
Special User Unit Rates     Flow ($ per mgd) 687,000 786,093 899,480 1,029,221 342,221 14.4% BOD ($ per BOD x mgd) 815 936 1,075 1,235 420 14.9%     SS ($ per SS x mgd) 337 476 672 950 613 41.3%     Cust Svc ($ per account) 2.84 SUBTOTAL 120 120
TOTAL 61,074
Proposed Rates Effective
3‐Year Rate Increase
With Equal % Increases
Table 12 ‐ Projected Rates (Rounded)
Average Current
User Category Flow BOD SS Monthly July 1 July 1 July 1 Billing Unit (gpd) (mg/l) (mg/l) Rate 2017 2018 2019

RESIDENTIAL
B. 102/105
107/109 Residential 150 300 300 $15.85 $17.40 $19.15 $21.05 Each living unit

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government 117 150 150 $10.75 $11.50 $12.35 $13.25 Location/each business C. 102 Transient Occupancy (Resid) 150 300 300 15.85 17.40 19.15 21.05 Each living unit D. 221 Hotel/Motel 66 310 120 6.70 7.20 7.80 8.40 Each room E. 222 Bed & Breakfast Inn 43 310 120 4.45 4.75 5.10 5.45 Each room F. 231 Supermarket 638 800 800 107.00 119.10 132.60 147.60 Location G. 241 Medical Office 156 130 80 13.75 14.60 15.50 16.45 Each licensed physician H. 242 Dental Office 215 130 80 18.80 20.00 21.30 22.70 Each licensed dentist I. 243 Rest Home/Convalescent 43 250 100 4.20 4.50 4.80 5.15 Each bed of licensed capacity J. 244 General Hospital 256 250 100 24.70 26.50 28.50 30.60 Each bed of licensed capacity K. 245 Animal Hospital 292 250 100 28.55 30.50 32.65 34.90 Location/each business L. 261 Restaurant–One Meal 6 1000 600 1.05 1.15 1.30 1.40 Each restaurant seat 262 Restaurant–Two Meals 9 1000 600 1.55 1.70 1.90 2.10 Each restaurant seat 263 Restaurant–Three Meals 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat M. 264 Restaurant w/Bar 17 1000 600 3.00 3.30 3.65 4.00 Each restaurant seat N. 265 Bar 254 200 200 24.60 26.60 28.70 31.05 Location/each business O. 266 Nightclub 760 200 200 73.05 79.15 85.75 92.85 Location/each business P. 267 Takeout Food–Small 283 500 300 35.65 38.70 41.95 45.55 Location/each business 268 Takeout Food–Medium 697 500 300 87.20 94.85 103.15 112.20 Location/each business 269 Takeout Food–Large 1,270 500 300 159.00 172.90 188.00 204.40 Location/each business Q. 270 Bakery 230 1000 600 41.20 45.15 49.50 54.30 Location/each business R. 281 Theater 377 150 150 33.85 36.55 39.50 42.65 Per screen at each location S. 282 Bowling Center 1,146 150 150 103.00 111.20 120.05 129.60 Location/each business T. 290 Mortuary 310 800 800 52.25 58.05 64.55 71.70 Location/each business U. 291 School (Minimum) 117 150 150 10.75 11.50 12.35 13.25 Each business 292 School (Grades 0‐6) 2 130 100 0.13 0.15 0.18 0.21 School population 293 School (Grade 7‐College) 4 130 100 0.28 0.32 0.37 0.43 School population 294 Boarding School 40 233 165 3.25 3.75 4.30 4.90 School population V. 331 Service Station/Repair 112 180 280 11.20 12.10 13.10 14.15 Location/each business 332 Svc Station/Repair (11‐20) 112 180 280 11.20 12.10 13.10 14.15 Location/each business W. 353 Dry Cleaners 386 150 150 35.05 37.70 40.55 43.65 Location/each business X. 354 Laundromats 102 150 110 9.00 9.70 10.40 11.20 Each washing machine CC. 101 Vacant Residence ‐‐‐ ‐‐‐ ‐‐‐ 9.15 10.45 11.50 12.65 Each living unit 211 Vacant Business ‐‐‐ ‐‐‐ ‐‐‐ 7.90 6.90 7.40 7.95 Each location/each business 416 Mobile Washers (per year) 34 20 150 25.00 29.40 34.60 40.70 Each mobile washer per year SPECIAL USER CHARGE FORMULA ACCOUNTS
Y. 351 Laundry: Industrial Usage Sample Sample
352 Laundry: Commercial Usage 450 240
Z. 366 Car Wash Usage 20 150
AA. 361 Major Hotel Usage 500 600
BB. 367 Truck Wash Usage 180 270
407 Rec/Sports Center Usage 150 150
401‐410 Other Usage Sample Sample
SPECIAL USER CHARGE FORMULA RATES
Flow Charge $687,000 $786,093 $899,480 $1,029,221 $ per mgd BOD Charge 815 936 1,075 1,235 $ per mgd x BOD strength SS Charge  337 476 672 950 $ per mgd x SS strength
Fixed Charge 2.84 ‐‐‐  ‐‐‐  ‐‐‐
SPECIAL USER CHARGE FORMULA
Charge = (Flow Charge x V) + (BOD Charge x V x B) + (SS Charge x V x S) Where:  V = Average Daily Sewage Flow in Million Gallons per Day (mgd) B = Average Sewage Biological Oxygen Demand (BOD) Concentration in mg/l C = Average Sewage Suspended Solids (SS) Concentration in mg/l Based on "Special User Charge Formula" *
Proposed MRWPCA Wastewater Treatment Rates
Wastewater Strength Monthly Rate per Unit Effective
"Special User" means any establishment, which cannot be classified in any other category, based on individual flow and strength characteristics. The special user charge is determined based on applying the formula shown below.  Actual water usage is ordinarily the basis for the special user's average daily  flow.

Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Based on "Special User Charge Formula" *
Average Annual CIP Next 9 years $9,989,292
Table 13MRWPCA10‐Year Capital Improvement Program
Project Description Process Area Current $ 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 TotalEnergy Management Study RTP $400,000  $0  $0  $424,360  $0  $0  $0  $0  $0  $0  $0  $424,360 Master Plan‐ RTP RTP 600,000  0  600,000  0  0  0  0  0  0  0  0  600,000 Master Plan‐ Cogen RTP 250,000  0  250,000  0  0  0  0  0  0  0  0  250,000 Master Plan‐ Pump Stations & Conveyance System Pump Stations 750,000  750,000  0  0  0  0  0  0  0  0  0  750,000 3rd Screw and cover for screws Screwpress 1,250,000  0  0  0  0  0  0  0  1,537,342  0  0  1,537,342 Food Waste & FOG Facility Digesters tbd 0  0  0  0  0  0  0  0  0  0  0 Odor Scrubbers Sta 15 & 13 750,000  0  750,000  0  0  0  0  0  0  0  0  750,000 Low Pressure Gas System Digester Gas 650,000  0  0  0  710,273  0  0  0  0  0  0  710,273 Liquid Waste Automated Check In Liquid Waste 100,000  0  0  106,090  0  0  0  0  0  0  0  106,090 ‐ GIS General‐ SCADA 50,000  50,000  0  0  0  0  0  0  0  0  0  50,000 ‐ Ops Logging Software (Proj #26) General‐ SCADA 50,000  0  50,000  0  0  0  0  0  0  0  0  50,000 ‐ Online O&M Ph 3 of 3 (Proj 30) General‐ SCADA 75,000  75,000  0  0  0  0  0  0  0  0  0  75,000 ‐ Pump Station Uniform Asset Tagging Project (Proj #4) General‐ SCADA 100,000  0  100,000  0  0  0  0  0  0  0  0  100,000 Scrubber Retrofit to Bioscrubber Thickeners 125,000  0  0  0  136,591  0  0  0  0  0  0  136,591 Headworks Screenings Compactor and Bin Cover Headworks 210,000  0  0  222,789  0  0  0  0  0  0  0  222,789 RTP Screwpress Manhole for Process Control Monitoring Screwpress 150,000  0  0  159,135  0  0  0  0  0  0  0  159,135 Biosolids Storage Hopper Screwpress 800,000  0  0  0  874,182  0  0  0  0  0  0  874,182 Reeside PS Flow Meter Sta 7 25,000  0  0  26,523  0  0  0  0  0  0  0  26,523 Backup Generator Harris Court 30,000  0  0  31,827  0  0  0  0  0  0  0  31,827 Salinas Pump Station PLC Upgrades (Construction) SAPS 200,000  200,000  0  0  0  0  0  0  0  0  0  200,000 ‐ CMMS Implementation (Proj #27) General‐ SCADA 400,000  200,000  200,000  0  0  0  0  0  0  0  0  400,000 Moss Landing Pump Station Upgrades MLPS 800,000  50,000  750,000  0  0  0  0  0  0  0  0  800,000 Station Valve Replacement and Additions Sta 13 600,000  600,000  0  0  0  0  0  0  0  0  0  600,000 Monterey PS Drives (Design) MOPS 1,050,000  250,000  800,000  0  0  0  0  0  0  0  0  1,050,000 Land Outfall Permanent Stabilization  Outfall 1,560,000  60,000  1,500,000  0  0  0  0  0  0  0  0  1,560,000 Trickling Filter Area Rehab (Design) Trickling Filter 1,850,000  350,000  1,500,000  0  0  0  0  0  0  0  0  1,850,000 Plant Electrical Distribution‐ transfer switch, generators Cogen/RTP 5,267,184  0  0  424,360  5,318,503  0  0  0  0  0  0  5,742,863 Primary Clarifier 5 Influent gates and actuators Primary 5 150,000  0  0  159,135  0  0  0  0  0  0  0  159,135 Primary 5 Sludge Lines Cleanouts Primary 5 125,000  125,000  0  0  0  0  0  0  0  0  0  125,000 Access Ramp Rehab, Liner Repair Storm Pond 340,000  0  0  360,706  0  0  0  0  0  0  0  360,706 Headworks Bypass Upgrades Headworks 200,000  0  0  212,180  0  0  0  0  0  0  0  212,180 FOPS Pump Replacement (Low Flow) FOPS 870,000  0  0  922,983  0  0  0  0  0  0  0  922,983 SEPS Pump Replacement SEPS 1,000,000  0  0  0  0  0  0  1,194,052  0  0  0  1,194,052 Grit Removal‐ stop logs Grit Removal 350,000  0  0  371,315  0  0  0  0  0  0  0  371,315 FOPS Backup Controls FOPS 50,000  0  50,000  0  0  0  0  0  0  0  0  50,000 CAPS/FOPS Door Replacement  CAPS/FOPS 100,000  0  0  106,090  0  0  0  0  0  0  0  106,090 Pavement Rehab‐ whole facility + repairs at lagoons General 275,000  0  0  291,748  0  0  0  0  0  0  0  291,748 Station Valve Replacement and Additions Sta 15 500,000  0  500,000  0  0  0  0  0  0  0  0  500,000 ‐ Control Room Remodel (Proj #8) General ‐ SCADA 120,000  0  120,000  0  0  0  0  0  0  0  0  120,000 Trickling Filter Odor Scrubber Demo Trickling Filter 50,000  0  50,000  0  0  0  0  0  0  0  0  50,000 Marina Drives MAPS 130,000  0  0  137,917  0  0  0  0  0  0  0  137,917 Ceiling Cogen Bldg 100,000  0  0  106,090  0  0  0  0  0  0  0  106,090 Seaside Pump Station Electrical Upgrades SEPS 2,000,000  0  0  0  2,185,454  0  0  0  0  0  0  2,185,454 Fort Ord Pump Station Electrical Upgrades FOPS 2,000,000  0  0  2,121,800  0  0  0  0  0  0  0  2,121,800 DAFT Center Column & VFD Thickeners 200,000  0  200,000  0  0  0  0  0  0  0  0  200,000 Headworks Influent Sluice Gate Actuators & Gates Headworks 60,000 0  60,000  0  0  0  0  0  0  0  0  60,000 Projected Cost with 3% Cost Escalation
A-16
Average Annual CIP Next 9 years $9,989,292
Table 13MRWPCA10‐Year Capital Improvement Program
Project Description Process Area Current $ 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total Projected Cost with 3% Cost Escalation
SEPS Concrete Corrosion Rehab SEPS 225,000  0  0  0  245,864  0  0  0  0  0  0  245,864 Headworks Area Rehab‐ Electrical Headworks 1,000,000  0  0  1,060,900  0  0  0  0  0  0  0  1,060,900 Digester Area Rehab‐ Electrical & Digester #1 Rehab Digesters 750,000  0  0  795,675  0  0  0  0  0  0  0  795,675 FOPS Roof Replacement FOPS 50,000  0  50,000  0  0  0  0  0  0  0  0  50,000 Primary Clarifiers‐ scum pumps Primaries 152,000  0  0  161,257  0  0  0  0  0  0  0  161,257 Cogen Compressor Cogen 1,000,000  0  0  0  0  0  0  1,194,052  0  0  0  1,194,052 Coral St Dry Side Pump Replacement  Sta 15 100,000  0  100,000  0  0  0  0  0  0  0  0  100,000 Marina Pump Station‐ Generator with AST & UST Removal MAPS 255,000  0  0  0  0  287,005  0  0  0  0  0  287,005 Relocation of Station 15 Sta 15 24,000,000  0  0  0  0  0  0  0  9,838,991  10,134,161  10,438,185  30,411,337 Mixed Liquor Distribution Structure Gates and Valves Secondaries 119,000  0  0  0  130,035  0  0  0  0  0  0  130,035 Monterey PS Pumps MOPS 1,500,000  0  0  0  0  1,688,263  0  0  0  0  0  1,688,263 Seismic Upgrades RTP 475,000  0  200,000  291,748  0  0  0  0  0  0  0  491,748 Headworks Grit Bin Drain Headworks 50,000  0  50,000  0  0  0  0  0  0  0  0  50,000 Class C Pump Station Redesign Class C PS 2,000,000  0  2,000,000  0  0  0  0  0  0  0  0  2,000,000 Trickling Filter Mechanisms & Domes #1 & 2 Trickling Filter 6,620,000  0  0  0  0  7,450,868  0  0  0  0  0  7,450,868 Trickling Filter Mechanisms & Domes #3 & 4 Trickling Filter 6,620,000  0  0  0  0  0  0  7,904,626  0  0  0  7,904,626 Trickling Filter Mechanisms & Domes #5 & 6 Trickling Filter 6,620,000  0  0  0  0  0  7,674,394  0  0  0  0  7,674,394 Liquid Waste Facility Upgrades (design) Liquid Waste 250,000  0  0  265,225  0  0  0  0  0  0  0  265,225 Lighting Retrofit Harris Court 50,000  0  0  53,045  0  0  0  0  0  0  0  53,045 Trickling Filter Influent and Effluent Gates Trickling Filter 1,250,000  0  0  0  0  0  1,449,093  0  0  0  0  1,449,093 furnishings, carpet Harris Court 125,000  0  0  132,613  0  0  0  0  0  0  0  132,613 Carpets, Lab Layout, furnishings RTP Admin 250,000  0  0  265,225  0  0  0  0  0  0  0  265,225 Belt Press Building Replacement Belt Press 80,000  0  0  84,872  0  0  0  0  0  0  0  84,872 Shop Upgrades Maint Bldg 100,000  0  0  106,090  0  0  0  0  0  0  0  106,090 Primary Launders Concrete Repairs Primaries 150,000  0  150,000  0  0  0  0  0  0  0  0  150,000 Digesters Concrete Repairs Digesters 80,000  0  80,000  0  0  0  0  0  0  0  0  80,000 Total 80,583,184  2,710,000  10,110,000  9,401,696  9,600,900  9,426,136  9,123,487  10,292,731  11,376,333  10,134,161  10,438,185  92,613,630 A-17
APPENDIX B
Capacity Charge Update Tables
Monterey Regional Water
Pollution Control Agency
Capacity Charge Update
Table 1
MRWPCA Capacity Charge Update
Fixed Asset Cost Allocation
ENR‐Adjusted
Location 1 Location 2 Cost Basis  Admin/Gen'l Flow BOD SS Total Admin/Gen'l Flow BOD SS Total Administration 90 8,456,404 100% 0% 0% 0% 100% 8,456,404 0 0 0 8,456,404 Pump Stations 1 ‐ 30 133,934,531 0% 100% 0% 0% 100% 0 133,934,531 0 0 133,934,531 Regional Treatment Plant 80
Control Room 80009 3,117 5% 35% 25% 35% 100% 156 1,091 779 1,091 3,117 Administration 80010 5,534,145 85% 5% 5% 5% 100% 4,704,024 276,707 276,707 276,707 5,534,145 New RTP Admin Bldg 80011 6,097,478 25% 40% 10% 25% 100% 1,524,370 2,438,991 609,748 1,524,370 6,097,478 Lab 80012 446,472 5% 0% 60% 35% 100% 22,324 0 267,883 156,265 446,472 RTP Main Phone Room 80013 79,819 25% 25% 25% 25% 100% 19,955 19,955 19,955 19,955 79,819 RTP Lunch Room 80015 438,350 25% 25% 25% 25% 100% 109,588 109,588 109,588 109,588 438,350 Maintenance 80020 3,485,285 5% 45% 20% 30% 100% 174,264 1,568,378 697,057 1,045,585 3,485,285 Modular Office Trailer 80025 29,166 25% 25% 25% 25% 100% 7,292 7,292 7,292 7,292 29,166 Old Vehicle Storage/Auto Shop 80030 1,447,010 5% 30% 25% 40% 100% 72,351 434,103 361,753 578,804 1,447,010 Cogen Building 80039 734,150 5% 0% 40% 55% 100% 36,708 0 293,660 403,783 734,150 Power Generation 80040 17,359,905 5% 0% 40% 55% 100% 867,995 0 6,943,962 9,547,948 17,359,905 Fire Pump Building (near Cogen) 80041 3,298 70% 0% 15% 15% 100% 2,309 0 495 495 3,298 Chemical 80050 3,148,813 0% 5% 5% 90% 100% 0 157,441 157,441 2,833,932 3,148,813 GWR Demonstration Facility 80051 360,254 100% 0% 0% 0% 100% 360,254 0 0 0 360,254 Trickling Filter Pump Station 80060 7,464,020 0% 0% 100% 0% 100% 0 0 7,464,020 0 7,464,020 Trickling Filter Electrical Building 80061 53,118 0% 0% 100% 0% 100% 0 0 53,118 0 53,118 Digester Control Building 80070 7,689,281 0% 0% 10% 90% 100% 0 0 768,928 6,920,353 7,689,281 Digester Electrical Building 80071 333,945 0% 0% 10% 90% 100% 0 0 33,395 300,551 333,945 Digesters 80072 499,703 0% 0% 10% 90% 100% 0 0 49,970 449,733 499,703 Brine Pond 80075 237,260 0% 100% 0% 0% 100% 0 237,260 0 0 237,260 Headworks Electrical 80080 872,478 5% 15% 15% 65% 100% 43,624 130,872 130,872 567,111 872,478 Bioflocculation Area 80089 6,043 0% 0% 55% 45% 100% 0 0 3,324 2,719 6,043 Bioflocculation Blower 80090 3,712,457 0% 0% 55% 45% 100% 0 0 2,041,851 1,670,606 3,712,457 Headworks 80100 11,850,924 0% 50% 5% 45% 100% 0 5,925,462 592,546 5,332,916 11,850,924 Headworks Bypass 80101 1,092,489 0% 100% 0% 0% 100% 0 1,092,489 0 0 1,092,489 Primary Clarifiers Pump Pit 80110 383,725 0% 0% 20% 80% 100% 0 0 76,745 306,980 383,725 Primary Clarifier #1 80111 1,858,135 0% 0% 20% 80% 100% 0 0 371,627 1,486,508 1,858,135 Primary Clarifier #2 80112 1,824,069 0% 0% 20% 80% 100% 0 0 364,814 1,459,255 1,824,069 Primary Clarifier #3 80113 1,709,912 0% 0% 20% 80% 100% 0 0 341,982 1,367,930 1,709,912 Primary Clarifier #4 80114 1,715,313 0% 0% 20% 80% 100% 0 0 343,063 1,372,250 1,715,313 Primary Clarifier #5 80115 2,075,643 0% 0% 20% 80% 100% 0 0 415,129 1,660,514 2,075,643 Scum Hopper/Dewater 80116 144,307 0% 0% 0% 100% 100% 0 0 0 144,307 144,307 Belt Press Building 80117 76,341 0% 34% 33% 33% 100% 0 25,956 25,193 25,193 76,341 Screw Press Building 80118 7,284,139 0% 0% 10% 90% 100% 0 0 728,414 6,555,725 7,284,139 SCADA 80119 4,849 15% 45% 20% 20% 100% 727 2,182 970 970 4,849 Primary Sludge Pump Station 80120 6,005,167 0% 0% 20% 80% 100% 0 0 1,201,033 4,804,134 6,005,167 Class C Water Pump Station 80121 40,889 0% 0% 34% 66% 100% 0 0 13,902 26,987 40,889 Trickling Filter Tower 1,2,3 80131 12,982,198 0% 0% 100% 0% 100% 0 0 12,982,198 0 12,982,198 Trickling Filter Tower 4,5,6 80132 12,901,979 0% 0% 100% 0% 100% 0 0 12,901,979 0 12,901,979 Secondary Clarifiers Pump Pit 80140 13,139 0% 0% 34% 66% 100% 0 0 4,467 8,672 13,139 Secondary Clarifier #1 80141 1,513,320 0% 5% 35% 60% 100% 0 75,666 529,662 907,992 1,513,320 Secondary Clarifier #2 80142 1,513,320 0% 5% 35% 60% 100% 0 75,666 529,662 907,992 1,513,320 Secondary Clarifier #3 80143 1,521,404 0% 5% 35% 60% 100% 0 76,070 532,491 912,842 1,521,404 Secondary Clarifier #4 80144 1,513,318 0% 5% 35% 60% 100% 0 75,666 529,661 907,991 1,513,318 Secondary Clarifier #5 80145 1,513,318 0% 5% 35% 60% 100% 0 75,666 529,661 907,991 1,513,318 Secondary Clarifier #6 80146 1,498,178 0% 5% 35% 60% 100% 0 74,909 524,362 898,907 1,498,178 Secondary Flow Distribution 80150 6,136,395 0% 50% 15% 35% 100% 0 3,068,197 920,459 2,147,738 6,136,395 Secondary Effluent Rapid Mix 80160 1,287,188 0% 80% 10% 10% 100% 0 1,029,750 128,719 128,719 1,287,188 CL2 Injection Water Pump Station 80170 825,908 0% 0% 50% 50% 100% 0 0 412,954 412,954 825,908 Outfall Junction 80180 2,081 0% 100% 0% 0% 100% 0 2,081 0 0 2,081 Recycle Sump #2 ‐ East 80191 231,095 0% 10% 20% 70% 100% 0 23,110 46,219 161,767 231,095 Recycle Sump #2 ‐ West 80192 236,197 0% 20% 40% 40% 100% 0 47,239 94,479 94,479 236,197 Daft Area 80200 29,468 0% 5% 40% 55% 100% 0 1,473 11,787 16,207 29,468 Gravity Thickener/Daft #2 80201 1,823,920 0% 5% 30% 65% 100% 0 91,196 547,176 1,185,548 1,823,920 Daft Thickener #3 80202 1,928,605 0% 5% 55% 40% 100% 0 96,430 1,060,733 771,442 1,928,605 Anaerobic Digester #1 80203 398,556 0% 5% 40% 55% 100% 0 19,928 159,422 219,206 398,556 Anaerobic Digester #2 80211 2,828,177 0% 5% 40% 55% 100% 0 141,409 1,131,271 1,555,498 2,828,177 Anaerobic Digester #3 80212 3,865,511 0% 5% 40% 55% 100% 0 193,276 1,546,204 2,126,031 3,865,511 Anaerobic Digester #4 80213 4,200,937 0% 5% 40% 55% 100% 0 210,047 1,680,375 2,310,515 4,200,937 Anaerobic Digester #1 80214 2,848,188 0% 5% 40% 55% 100% 0 142,409 1,139,275 1,566,504 2,848,188 Sludge Lagoons 80220 2,682,387 0% 0% 40% 60% 100% 0 0 1,072,955 1,609,432 2,682,387 Drying Beds 80221 11,276,083 0% 0% 40% 60% 100% 0 0 4,510,433 6,765,650 11,276,083 Odor Control Systems 80230 1,422,209 10% 0% 80% 10% 100% 142,221 0 1,137,767 142,221 1,422,209 Chlorine Contact Tank 80240 00000
Bioflocculation Basin #1 80251 3,017,877 5% 10% 45% 40% 100% 150,894 301,788 1,358,045 1,207,151 3,017,877 Bioflocculation Basin #2 80252 3,017,877 5% 10% 45% 40% 100% 150,894 301,788 1,358,045 1,207,151 3,017,877 Bioflocculation Basin #3 80253 3,017,872 5% 10% 45% 40% 100% 150,894 301,787 1,358,043 1,207,149 3,017,872 Influent Junction 80260 84,222 0% 100% 0% 0% 100% 0 84,222 0 0 84,222 Thickened Sludge Pump Station 80280 2,972,791 0% 5% 40% 55% 100% 0 148,640 1,189,117 1,635,035 2,972,791 Storm Retention Pond 80290 596,683 0% 100% 0% 0% 100% 0 596,683 0 0 596,683 Low Pressure Gas Storage Tank 80301 66,922 0% 0% 45% 55% 100% 0 0 30,115 36,807 66,922 High Pressure Gas Storage Tank 80302 674,853 0% 0% 45% 55% 100% 0 0 303,684 371,169 674,853 Truck Scale 80310 12,439 0% 40% 25% 35% 100% 0 4,975 3,110 4,353 12,439 Liquid Waste Receiving 80315 257,760 0% 40% 25% 35% 100% 0 103,104 64,440 90,216 257,760 Primary Influent Structure 80320 5,386,560 0% 40% 25% 35% 100% 0 2,154,624 1,346,640 1,885,296 5,386,560 New Veh Steel ‐ OPS Storage 80330 630,253 5% 30% 25% 40% 100% 31,513 189,076 157,563 252,101 630,253 Gasoline Fuel Tank/Pump Dispenser 80340 605,019 0% 80% 10% 10% 100% 0 484,015 60,502 60,502 605,019 Diesel Fuel Tank/Pump Dispenser 80341 174,406 15% 50% 15% 20% 100% 26,161 87,203 26,161 34,881 174,406 Waste Gas Burner 80350 40,445 0% 5% 45% 50% 100% 0 2,022 18,200 20,223 40,445 Site Throughout 80990 97,798,661 0% 40% 25% 35% 100% 0 39,119,464 24,449,665 34,229,531 97,798,661 Other Treatment Plant Assets 7,019,518 0% 40% 25% 35% 100% 0 2,807,807 1,754,880 2,456,831 7,019,518 Outfall Diffuser Port Works 80999 2,335,831 0% 100% 0% 0% 100% 0 2,335,831 0 0 2,335,831 ____________ _______ _______ _______ _______ _______ ____________ ____________ ____________ ____________ ____________ Subtotal 300,804,539 2.9% 22.3% 34.2% 40.7% 100% 8,598,513 66,970,982 102,909,796 122,325,247 300,804,539 Portible Equipment 888 879,082 0.0% 100.0% 0.0% 0.0% 100.0% 0 879,082 0 0 879,082 Total 444,074,555 3.8% 45.4% 23.2% 27.5% 100.0% 17,054,917 201,784,594 102,909,796 122,325,247 444,074,555 Facility Cost Allocation % Facility Cost Allocation %
B-1
Table 2
MRWPCA Capacity Charge Update10‐Year CIP Cost Allocation 10‐Year CIP
Project Description Process Area
FY17‐26
(Current $)
Rehab &
Replacement
Upgrade &
Expansion
Rehab &
Replacement
Upgrade &
Expansion
Energy Management Study RTP $400,000  0% 100% $0  $400,000 Master Plan‐ RTP RTP 600,000  0% 100% 0  600,000 Master Plan‐ Cogen RTP 250,000  0% 100% 0  250,000 Master Plan‐ Pump Stations & Conveyance System Pump Stations 750,000  0% 100% 0  750,000 3rd Screw and cover for screws Screwpress 1,250,000  0% 100% 0  1,250,000 Food Waste & FOG Facility Digesters 0  0% 100% 0  0 Odor Scrubbers Sta 15 & 13 750,000  0% 100% 0  750,000 Low Pressure Gas System Digester Gas 650,000  0% 100% 0  650,000 Liquid Waste Automated Check In Liquid Waste 100,000  0% 100% 0  100,000 ‐ GIS General‐ SCADA 50,000  0% 100% 0  50,000 ‐ Ops Logging Software (Proj #26) General‐ SCADA 50,000  0% 100% 0  50,000 ‐ Online O&M Ph 3 of 3 (Proj 30) General‐ SCADA 75,000  0% 100% 0  75,000 ‐ Pump Station Uniform Asset Tagging Project (Proj #4) General‐ SCADA 100,000  0% 100% 0  100,000 Scrubber Retrofit to Bioscrubber Thickeners 125,000  0% 100% 0  125,000 Headworks Screenings Compactor and Bin Cover Headworks 210,000  0% 100% 0  210,000 RTP Screwpress Manhole for Process Control Monitoring Screwpress 150,000  0% 100% 0  150,000 Biosolids Storage Hopper Screwpress 800,000  0% 100% 0  800,000 Reeside PS Flow Meter Sta 7 25,000  0% 100% 0  25,000
Backup Generator Harris Court 30,000  0% 100% 0  30,000 Salinas Pump Station PLC Upgrades (Construction) SAPS 200,000  0% 100% 0  200,000 ‐ CMMS Implementation (Proj #27) General‐ SCADA 400,000  0% 100% 0  400,000 Moss Landing Pump Station Upgrades MLPS 800,000  0% 100% 0  800,000 Station Valve Replacement and Additions Sta 13 600,000  40% 60% 240,000  360,000 Monterey PS Drives (Design) MOPS 1,050,000  100% 0% 1,050,000  0 Land Outfall Permanent Stabilization  Outfall 1 560,000  0% , 100% 0  1,560,000 Trickling Filter Area Rehab (Design) Trickling Filter 1,850,000  100% 0% 1,850,000  0 Plant Electrical Distribution‐ transfer switch, generators Cogen/RTP 5,267,184  100% 0% 5,267,184  0 Primary Clarifier 5 Influent gates and actuators Primary 5 150,000  100% 0% 150,000  0 Primary 5 Sludge Lines Cleanouts Primary 5 125,000  0% 100% 0  125,000 Access Ramp Rehab, Liner Repair Storm Pond 340,000  100% 0% 340,000  0 Cost Allocation % Cost Allocation $
B-2
Table 2
MRWPCA Capacity Charge Update10‐Year CIP Cost Allocation 10‐Year CIP
Project Description Process Area
FY17‐26
(Current $)
Rehab &
Replacement
Upgrade &
Expansion
Rehab &
Replacement
Upgrade &
Expansion
Cost Allocation % Cost Allocation $
Headworks Bypass Upgrades Headworks 200,000  0% 100% 0  200,000 FOPS Pump Replacement (Low Flow) FOPS 870,000  100% 0% 870,000  0 SEPS Pump Replacement SEPS 1,000,000  100% 0% 1,000,000  0 Grit Removal‐ stop logs Grit Removal 350,000  100% 0% 350,000  0 FOPS Backup Controls FOPS 50,000  0% 100% 0  50,000 CAPS/FOPS Door Replacement CAPS/FOPS 100,000  100% 0% 100,000  0 Pavement Rehab‐ whole facility + repairs at lagoons General 275,000  100% 0% 275,000  0 Station Valve Replacement and Additions Sta 15 500,000  40% 60% 200,000  300,000 ‐ Control Room Remodel (Proj #8) General ‐ SCADA 120,000  0% 100% 0  120,000 Trickling Filter Odor Scrubber Demo Trickling Filter 50,000  0% 100% 0  50,000 Marina Drives MAPS 130,000  100% 0% 130,000  0 Ceiling Cogen Bldg 100,000  100% 0% 100,000  0 Seaside Pump Station Electrical Upgrades SEPS 2,000,000  50% 50% 1,000,000  1,000,000 Fort Ord Pump Station Electrical Upgrades FOPS 2,000,000  50% 50% 1,000,000  1,000,000 DAFT Center Column & VFD Thickeners 200,000  50% 50% 100,000  100,000 Headworks Influent Sluice Gate Actuators & Gates Headworks 60,000  100% 0% 60,000  0 SEPS Concrete Corrosion Rehab SEPS 225,000  100% 0% 225,000  0 Headworks Area Rehab‐ Electrical Headworks 1,000,000  100% 0% 1,000,000  0 Digester Area Rehab‐ Electrical & Digester #1 Rehab Digesters 750,000  100% 0% 750,000  0 FOPS Roof Replacement FOPS 50,000  100% 0% 50,000  0 Primary Clarifiers‐ scum pumps Primaries 152,000  100% 0% 152,000  0 Cogen Compressor Cogen 1,000,000  100% 0% 1,000,000  0 Coral St Dry Side Pump Replacement  Sta 15 100,000  100% 0% 100,000  0 Marina Pump Station‐ Generator with AST & UST Removal MAPS 255,000  0% 100% 0  255,000 Relocation of Station 15 Sta 15 24,000,000  100% 0% 24,000,000  0 Mixed Liquor Distribution Structure Gates and Valves Secondaries 119,000  100% 0% 119,000  0 Monterey PS Pumps MOPS 1,500,000  100% 0% 1,500,000  0 Seismic Upgrades RTP 475,000  0% 100% 0  475,000 Headworks Grit Bin Drain Headworks 50,000  100% 0% 50,000  0 Class C Pump Station Redesign Class C PS 2,000,000  0% 100% 0  2,000,000 B-3
Table 2
MRWPCA Capacity Charge Update10‐Year CIP Cost Allocation 10‐Year CIP
Project Description Process Area
FY17‐26
(Current $)
Rehab &
Replacement
Upgrade &
Expansion
Rehab &
Replacement
Upgrade &
Expansion
Cost Allocation % Cost Allocation $
Trickling Filter Mechanisms & Domes #1 & 2 Trickling Filter 6,620,000  100% 0% 6,620,000  0 Trickling Filter Mechanisms & Domes #3 & 4 Trickling Filter 6,620,000  100% 0% 6,620,000  0 Trickling Filter Mechanisms & Domes #5 & 6 Trickling Filter 6,620,000  100% 0% 6,620,000  0 Liquid Waste Facility Upgrades (design) Liquid Waste 250,000  0% 100% 0  250,000 Lighting Retrofit Harris Court 50,000  0% 100% 0  50,000 Trickling Filter Influent and Effluent Gates Trickling Filter 1,250,000  100% 0% 1,250,000  0 furnishings, carpet Harris Court 125,000  100% 0% 125,000  0 Carpets, Lab Layout, furnishings RTP Admin 250,000  100% 0% 250,000  0 Belt Press Building Replacement Belt Press 80,000  100% 0% 80,000  0 Shop Upgrades Maint Bldg 100,000  0% 100% 0  100,000 Primary Launders Concrete Repairs Primaries 150,000  100% 0% 150,000  0 Digesters Concrete Repairs Digesters 80,000  100% 0% 80,000  0 Total 80,583,184  80.4% 19.6% 64,823,184  15,760,000 Cost allocation by MRWPCA Engineering Supervisor.

B-4
Table 3
MRWPCA Capacity Charge Update10‐Year CIP Cost Allocation 10‐Year CIP Cost Allocation
Project Description Process Area
FY17‐26
(Current $)
To Upgrade &
Expansion Flow BOD SS Flow BOD SS
Energy Management Study RTP $400,000  $400,000  0% 35% 65% $0  $140,000  $260,000 Master Plan‐ RTP RTP 600,000  600,000  50% 20% 30% 300,000  120,000  180,000 Master Plan‐ Cogen RTP 250,000  250,000  0% 35% 65% 0  87,500  162,500 Master Plan‐ Pump Stations & Conveyance System Pump Stations 750,000  750,000  100% 0% 0% 750,000  0  0 3rd Screw and cover for screws Screwpress 1,250,000  1,250,000  0% 0% 100% 0  0  1,250,000 Food Waste & FOG Facility Digesters tbd 0  0% 100% 0% 0  0  0 Odor Scrubbers Sta 15 & 13 750,000  750,000  0% 100% 0% 0  750,000  0 Low Pressure Gas System Digester Gas 650,000  650,000  0% 100% 0% 0  650,000  0 Liquid Waste Automated Check In Liquid Waste 100,000  100,000  5% 75% 20% 5,000  75,000  20,000 ‐ GIS General‐ SCADA 50,000  50,000  50% 20% 30% 25,000  10,000  15,000 ‐ Ops Logging Software (Proj #26) General‐ SCADA 50,000  50,000  50% 20% 30% 25,000  10,000  15,000 ‐ Online O&M Ph 3 of 3 (Proj 30) General‐ SCADA 75,000  75,000  50% 20% 30% 37,500  15,000  22,500 ‐ Pump Station Uniform Asset Tagging Project (Proj #4) General‐ SCADA 100,000  100,000  100% 0% 0% 100,000  0  0 Scrubber Retrofit to Bioscrubber Thickeners 125,000  125,000  0% 0% 100% 0  0  125,000 Headworks Screenings Compactor and Bin Cover Headworks 210,000  210,000  50% 20% 30% 105,000  42,000  63,000 RTP Screwpress Manhole for Process Control Monitoring Screwpress 150,000  150,000  0% 0% 100% 0  0  150,000 Biosolids Storage Hopper Screwpress 800,000  800,000  0% 0% 100% 0  0  800,000 Reeside PS Flow Meter Sta 7 25,000  25,000  100% 0% 0% 25,000  0  0 Backup Generator Harris Court 30,000  30,000  60% 15% 25% 18,000  4,500  7,500 Salinas Pump Station PLC Upgrades (Construction) SAPS 200,000  200,000  100% 0% 0% 200,000  0  0 ‐ CMMS Implementation (Proj #27) General‐ SCADA 400,000  400,000  60% 15% 25% 240,000  60,000  100,000 Moss Landing Pump Station Upgrades MLPS 800,000  800,000  100% 0% 0% 800,000  0  0 Station Valve Replacement and Additions Sta 13 600,000  360,000  100% 0% 0% 360,000  0  0 Monterey PS Drives (Design) MOPS 1,050,000  0  100% 0% 0% 0  0  0 Land Outfall Permanent Stabilization  Outfall 1,560,000  1,560,000  100% 0% 0% 1,560,000  0  0 Trickling Filter Area Rehab (Design) Trickling Filter 1,850,000  0  0% 100% 0% 0  0  0 Plant Electrical Distribution‐ transfer switch, generators Cogen/RTP 5,267,184  0  0% 35% 65% 0  0  0 Primary Clarifier 5 Influent gates and actuators Primary 5 150,000  0  0% 0% 100% 0  0  0 Primary 5 Sludge Lines Cleanouts Primary 5 125,000  125,000  0% 0% 100% 0  0  125,000 Access Ramp Rehab, Liner Repair Storm Pond 340,000  0  50% 20% 30% 0  0  0 Headworks Bypass Upgrades Headworks 200,000  200,000  50% 20% 30% 100,000  40,000  60,000 FOPS Pump Replacement (Low Flow) FOPS 870,000  0  100% 0% 0% 0  0  0 SEPS Pump Replacement SEPS 1,000,000  0  100% 0% 0% 0  0  0 Grit Removal‐ stop logs Grit Removal 350,000  0  100% 0% 0% 0  0  0 FOPS Backup Controls FOPS 50,000  50,000  100% 0% 0% 50,000  0  0 CAPS/FOPS Door Replacement  CAPS/FOPS 100,000  0  100% 0% 0% 0  0  0 Pavement Rehab‐ whole facility + repairs at lagoons General 275,000  0  50% 20% 30% 0  0  0 Station Valve Replacement and Additions Sta 15 500,000  300,000  100% 0% 0% 300,000  0  0 Cost Allocation % Cost Allocation $
B-5
Table 3
MRWPCA Capacity Charge Update10‐Year CIP Cost Allocation 10‐Year CIP Cost Allocation
Project Description Process Area
FY17‐26
(Current $)
To Upgrade &
Expansion Flow BOD SS Flow BOD SS
Cost Allocation % Cost Allocation $
‐ Control Room Remodel (Proj #8) General ‐ SCADA 120,000  120,000  60% 15% 25% 72,000  18,000  30,000 Trickling Filter Odor Scrubber Demo Trickling Filter 50,000  50,000  0% 100% 0% 0  50,000  0 Marina Drives MAPS 130,000  0  100% 0% 0% 0  0  0
Ceiling Cogen Bldg 100,000  0  0% 35% 65% 0  0  0
Seaside Pump Station Electrical Upgrades SEPS 2,000,000  1,000,000  100% 0% 0% 1,000,000  0  0 Fort Ord Pump Station Electrical Upgrades FOPS 2,000,000  1,000,000  100% 0% 0% 1,000,000  0  0 DAFT Center Column & VFD Thickeners 200,000  100,000  0% 0% 100% 0  0  100,000 Headworks Influent Sluice Gate Actuators & Gates Headworks 60,000 0  100% 0% 0% 0  0  0 SEPS Concrete Corrosion Rehab SEPS 225,000  0  100% 0% 0% 0  0  0 Headworks Area Rehab‐ Electrical Headworks 1,000,000  0  100% 0% 0% 0  0  0 Digester Area Rehab‐ Electrical & Digester #1 Rehab Digesters 750,000  0  0% 0% 100% 0  0  0 FOPS Roof Replacement FOPS 50,000  0  100% 0% 0% 0  0  0 Primary Clarifiers‐ scum pumps Primaries 152,000  0  0% 50% 50% 0  0  0 Cogen Compressor Cogen 1,000,000  0  0% 35% 65% 0  0  0 Coral St Dry Side Pump Replacement  Sta 15 100,000  0  100% 0% 0% 0  0  0 Marina Pump Station‐ Generator with AST & UST Removal MAPS 255,000  255,000  100% 0% 0% 255,000  0  0 Relocation of Station 15 Sta 15 24,000,000  0  100% 0% 0% 0  0  0 Mixed Liquor Distribution Structure Gates and Valves Secondaries 119,000  0  100% 0% 0% 0  0  0 Monterey PS Pumps MOPS 1,500,000  0  100% 0% 0% 0  0  0 Seismic Upgrades RTP 475,000  475,000  0% 35% 65% 0  166,250  308,750 Headworks Grit Bin Drain Headworks 50,000  0  50% 20% 30% 0  0  0 Class C Pump Station Redesign Class C PS 2,000,000  2,000,000  50% 20% 30% 1,000,000  400,000  600,000 Trickling Filter Mechanisms & Domes #1 & 2 Trickling Filter 6,620,000  0  0% 100% 0% 0  0  0 Trickling Filter Mechanisms & Domes #3 & 4 Trickling Filter 6,620,000  0  0% 100% 0% 0  0  0 Trickling Filter Mechanisms & Domes #5 & 6 Trickling Filter 6,620,000  0  0% 100% 0% 0  0  0 Liquid Waste Facility Upgrades (design) Liquid Waste 250,000  250,000  5% 75% 20% 12,500  187,500  50,000 Lighting Retrofit Harris Court 50,000  50,000  60% 15% 25% 30,000  7,500  12,500 Trickling Filter Influent and Effluent Gates Trickling Filter 1,250,000  0  0% 50% 50% 0  0  0 furnishings, carpet Harris Court 125,000  0  60% 15% 25% 0  0  0 Carpets, Lab Layout, furnishings RTP Admin 250,000  0  50% 20% 30% 0  0  0 Belt Press Building Replacement Belt Press 80,000  0  0% 0% 100% 0  0  0 Shop Upgrades Maint Bldg 100,000  100,000  50% 20% 30% 50,000  20,000  30,000 Primary Launders Concrete Repairs Primaries 150,000  0  0% 100% 0% 0  0  0 Digesters Concrete Repairs Digesters 80,000  0  0% 0% 100% 0  0  0 Total 80,583,184  15,760,000  53.4% 18.1% 28.5% 8,420,000  2,853,250  4,486,750 Cost allocation by MRWPCA Principal Engineer.

B-6
Table 4
MRWPCA Capacity Charge Update
Wastewater Costs Recovery
Flow BOD SS
Existing Wastewater System Assets (Jan‐2017 Cost)
Acquisition Cost Adjusted by ENR Construction Cost Index $444,074,555 49.3% 23.2% 27.5% 100.0% Allocation $218,839,512 $102,909,796 $122,325,247 $444,074,555 10‐Year Capital Improvement Projects (Current $)
Upgrades/Expansions 15,760,000
Rehab/Replacement Excluded
Subtotal 15,760,000 53.4% 18.1% 28.5% 100.0%
Allocation 8,420,000 2,853,250 4,486,750 15,760,000
Additional Capital Improvements Needed to Serve Growth Excluded Debt Adjustment (Excludes Pension Obligation Bonds)
Plus Prior Interest Pymts & Issuance Costs Through 06/30/17 18,897,937 Less Outstanding Principal as of 06/30/17 (12,439,840)
Net Debt Adjustment 6,458,097 49.3% 23.2% 27.5% 100.0%
Allocation 3,182,544 1,496,599 1,778,954 6,458,097
Unrestricted Operating Fund Reserves 06/30/16 3,690,569 50.0% 25.0% 25.0% 100.0% Allocation 1,845,285 922,642 922,642 3,690,569
Total 469,983,221 232,287,340 108,182,287 129,513,594 469,983,221 % of Total 49.4% 23.0% 27.6% 100.0%
Cost Allocation
B-7
Table 5
MRWPCA Capacity Charge Update
Wastewater Capacity Charge Calculation
Flow BOD SS
Cost Recovery
Existing Wastewater System Assets $218,839,512 $102,909,796 $122,325,247 10‐Year Capital Improvement Projects (Current $) 8,420,000 2,853,250 4,486,750 Debt Adjustment (Excludes Pension Obligation Bonds) 3,182,544 1,496,599 1,778,954 Unrestricted Operating Fund Reserves 06/30/16 1,845,285 922,642 922,642 ____________  ____________  __________ Total 232,287,340 108,182,287 129,513,594
Projected Service Capacity of Customer Base                             420 18.0                          400 mgd mg/l mg/l
Wastewater Loadings                23, 18,000,000            21, 013,396             917,520 gpd  lbs / year lbs / year
Unit Charges $12.90 $4.70 $5.91
per gpd per lb / year per lb / year
B-8
Table 6
MRWPCA Capacity Charge Update
Capacity Charge per EDU
Flow BOD SS TOTAL
Capacity Charge per Unit $12.9049 $4.70 $5.91
per gpd per lbs / year per lbs / year
CAPACITY CHARGE PER EDU
Residential Flow & Strength 150                                     300                       300 gpd  mg/l mg/l
Residential Wastewater Loadings 150                                  137                      137 gpd  lbs / year lbs / year
Capacity Charge per EDU $1,935.73 $643.94 $809.46 $3,389.13 % of Capacity Charge per EDU 57.12% 19.00% 23.88%
B-9
Table 7
MRWPCA Capacity Charge Update Flow BOD SS
Wastewater Capacity Charge Calculation 57.12% 19.00% 23.88% EDUs Capacity
Customer Class Flow/Unit Flow BOD SS Strength Flow Factor x Charge gpd Factor1 mg/l mg/l Factor2 Strength Factor per Unit

RESIDENTIAL
102/105
107/109 Residential Each living unit 150 1.00 300 300 1.00 1.000 $3,389.13

COMMERCIAL/INSTITUTIONAL
A. 001 Business/Government Location/each business 117 0.78 150 150 0.79 0.613 2,076.75 D. 221 Hotel/Motel Each room 66 0.44 310 120 0.86 0.380 1,287.00 E. 222 Bed & Breakfast Inn Each room 43 0.29 310 120 0.86 0.247 838.50 F. 231 Supermarket Location 638 4.25 800 800 1.71 7.293 24,717.09 G. 241 Medical Office Each licensed physician 156 1.04 130 80 0.72 0.746 2,527.96 H. 242 Dental Office Each licensed dentist 215 1.43 130 80 0.72 1.028 3,484.05 I. 243 Rest Home/Convalescent Each bed of licensed capacity 43 0.29 250 100 0.81 0.232 786.11 J. 244 General Hospital Each bed of licensed capacity 256 1.71 250 100 0.81 1.381 4,680.12 K. 245 Animal Hospital Location/each business 292 1.95 250 100 0.81 1.575 5,338.26 L. 261 Restaurant–One Meal Each restaurant seat 6 0.04 1,000 600 1.68 0.067 228.04 262 Restaurant–Two Meals Each restaurant seat 9 0.06 1,000 600 1.68 0.101 342.06 263 Restaurant–Three Meals Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 M. 264 Restaurant w/Bar Each restaurant seat 17 0.11 1,000 600 1.68 0.191 646.11 N. 265 Bar Location/each business 254 1.69 200 200 0.86 1.451 4,918.64 O. 266 Nightclub Location/each business 760 5.07 200 200 0.86 4.342 14,717.20 P. 267 Takeout Food–Small Location/each business 283 1.89 500 300 1.13 2.126 7,204.09 268 Takeout Food–Medium Location/each business 697 4.65 500 300 1.13 5.235 17,742.92 269 Takeout Food–Large Location/each business 1,270 8.47 500 300 1.13 9.539 32,329.29 Q. 270 Bakery Location/each business 230 1.53 1,000 600 1.68 2.579 8,741.49 R. 281 Theater Per screen at each location 377 2.51 150 150 0.79 1.974 6,691.75 S. 282 Bowling Center Location/each business 1,146 7.64 150 150 0.79 6.002 20,341.50 T. 290 Mortuary Location/each business 310 2.07 800 800 1.71 3.544 12,009.87 U. 291 School (Minimum) Each business 117 0.78 150 150 0.79 0.613 2,076.75 292 School (0‐6) School population 2 0.01 130 100 0.73 0.010 33.13 293 School (7‐College) School population 4 0.03 130 100 0.73 0.020 66.26 294 Boarding School School population 40 0.27 233 165 0.85 0.227 768.30 V. 331 Service Station/Repair Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 332 Service Station/Repair (11‐20) Location/each business 112 0.75 180 280 0.91 0.678 2,297.94 W. 353 Dry Cleaners Location/each business 386 2.57 150 150 0.79 2.022 6,851.50 X. 354 Laundromats Each washing machine 102 0.68 150 110 0.75 0.513 1,737.12 Mobile washers 34 0.23 20 150 0.70 0.159 540.25
SPECIAL USERS (Billed Individually)
Separate Billed Industrial/Commercial
Flow ($ per gpd) 1,935.73
BOD ($ per lb / year) 643.94
SS ($ per lb / year) 809.46
2 Strength Factor =  0.5712  +  [0.1900 x BOD strength / 300]  +  [0.2388 x SS strength / 300] With BOD and SS strengths in milligrams per liter (mg/l) Cost Recovery % per EDU
Wastewater Flow Wastewater Strength
1 Flow Factor =  Wastewater Flow in gallons per day (gpd) / 150 B-10
Table 8
MRWPCA Capacity Charge Update
Historical Influent Wastewater Loadings
2013 2014 2015 2016 3‐Year Avg
INFLUENT FLOW (MGD)
January 18.1 16.8 16.5 16.9
February 17.4 17.3 16.3 16.9
March 17.3 17.0 16.4 17.5
April 18.0 20.2 17.8 18.8
May 18.1 20.5 18.9 19.4
June 18.2 20.5 18.9 19.6
July 18.4 20.8 19.0 19.4
August 18.6 20.6 18.6 19.9
September 18.6 20.3 18.6 19.4
October 17.8 20.3 18.6 18.6
November 17.7 19.2 16.2 16.7
December 17.0 18.8 15.6 16.3
AVERAGE 17.9 19.4 17.6 18.3 18.42
Without Ag Wash 17.5 17.8 16.2 17.1 17.03
With Ag Wash 18.2 20.5 18.6 19.3 19.46
BIOLOGICAL OXYGEN DEMAND
January 326 362 419 319
February 305 341 391 356
March 277 366 372 348
April 348 342 390 372
May 367 370 393 356
June 347 362 383 387
July 342 380 383 422
August 353 362 436 479
September 377 372 394 428
October 338 411 393 358
November 345 397 391 355 Weighted
December 336 327 391 366 Average
AVERAGE 338 366 395 379 379
Without Ag Wash 318 359 393 341 364
With Ag Wash 353 371 396 407 391
BOD CONVERSION   BOD = 1.622 x (CBOD‐104.65) (based on MRWPCA sampling data) Without Ag Wash 346 413 468 383 420
With Ag Wash 403 432 473 491 465
TOTAL SUSPENDED SOLIDS (TSS)
January 391 421 470 364
February 393 416 426 377
March 416 420 393 372
April 417 393 359 393
May 424 419 337 371
June 398 406 350 400
July 406 417 364 461
August 422 390 389 451
September 401 398 394 423
October 417 381 361 393
November 406 394 375 375 Weighted
December 380 421 385 372 Average
AVERAGE 406 406 384 396 396
Without Ag Wash 397 414 410 371 398
With Ag Wash 412 401 365 413 393
CBOD Concentrations
B-11
Table A Excludes Water Reclamation Assets
MRWPCA Capacity Charge Update
Wastewater Fixed Asset Cost Basis Engineering News‐Record Construction Cost Index (20‐Cities Avg), January 2017 10531.68 ENR‐Adjusted
Asset # Description Location 1 Location 2 Acquisition
Year
Original Cost Original Cost
(w/ Adjustments)
Accumulated
Depreciation
Depreciated
Cost Basis
ENR‐CCI for
Acquisition Year
Original Cost
(w/ Adjustments)
00343 BUILDING, PUMP STATON NO. 23, 23 2301 1983 0000 4066 0 00344 TRANSITION STRUCTURE 3 23 2301 1983 20,349 20,349 16,617 3,732 4066 52,708 00345 TRANSITION STRUCTURE 1 23 2301 1983 28,020 28,020 22,881 5,139 4066 72,577 00346 TRANSITION STRUCTURE 2 23 2301 1983 24,191 24,191 19,755 4,436 4066 62,659 00347 BUILDING 23 2301 1983 1,710,195 1,710,195 1,396,567 313,628 4066 4,429,716 00348 BUILDING 23 2301 1983 8,708 8,708 7,111 1,597 4066 22,555 00349 36" X 86' 23 2301 1983 47,445 47,445 38,744 8,701 4066 122,891 00350 24" X 111' 23 2301 1983 35,260 35,260 28,794 6,466 4066 91,330 00351 27" VCP X 40' 23 2301 1983 21,968 21,968 17,939 4,029 4066 56,901 00352 BUILDING 23 2301 1983 31,757 31,757 25,933 5,824 4066 82,256 00353 BUILDING 23 2301 1983 544 544 444 100 4066 1,409
00354 BUILDING 23 2301 1983 15,196 15,196 12,409 2,787 4066 39,360 00355 BUILDING 23 2301 1983 923 923 754 169 4066 2,391
00356 18" X 54' 23 2301 1983 15,564 15,564 12,710 2,854 4066 40,314 00357 8" X 240' 23 2301 1983 18,277 18,277 14,925 3,352 4066 47,341 00358 BUILDING 23 2301 1983 1,742 1,742 1,423 319 4066 4,512 00359 36" X 60' 23 2301 1983 33,044 33,044 26,984 6,060 4066 85,590 00360 PROPERTY IMPROVEMENT 23 2301 1983 3,458 3,458 2,824 634 4066 8,957 00361 CRANE, 2M801, 7 1/2 HP, 5 TON 23 2301 1983 37,130 37,130 30,321 6,809 4066 96,173 00362 INTERCOM SYSTEM 23 2301 1983 5,937 5,937 4,848 1,089 4066 15,378 00363 1 TON CAPACITY 23 2301 1983 14,401 14,401 11,760 2,641 4066 37,301 00364 PROPERTY IMPROVEMENT 23 2301 1983 693 693 566 127 4066 1,795 00365 PROPERTY IMPROVEMENT 23 2301 1983 2,769 2,769 2,261 508 4066 7,172 00366 PROPERTY IMPROVEMENT 23 2301 1983 6,883 6,883 5,621 1,262 4066 17,828 00367 PROPERTY IMPROVEMENT 23 2301 1983 3,161 3,161 2,581 580 4066 8,188 00368 2" GSP 23 2301 1983 8,549 8,549 6,981 1,568 4066 22,143 00369 PROPERTY IMPROVEMENT 23 2301 1983 923 923 754 169 4066 2,391 00370 FENCING, APPROX. 390 LIN. FT 23 2399 1983 0000 4066 0 00371 PROPERTY IMPROVEMENT, 7' HIGH 23 2399 1983 5,997 5,997 4,897 1,100 4066 15,533 00372 BUILDING, PUMP STATION NO. 24, 23 2401 1984 0000 4146 0 00373 BUILDING 24 2401 1983 33,036 33,036 26,978 6,058 4066 85,569 00374 BUILDING 24 2401 1983 1,750,056 1,750,056 1,429,118 320,938 4066 4,532,964 00375 BUILDING 24 2401 1983 8,940 8,940 7,301 1,639 4066 23,156 00376 BUILDING 24 2401 1983 543 543 443 100 4066 1,406
00377 48" RCP W/ PVC LNG 24 2401 1983 14,350 14,350 11,718 2,632 4066 37,169 00378 PRESSURE MANHOLE, 24" 24 2401 1983 17,266 17,266 14,100 3,166 4066 44,722 00379 BUILDING 24 2401 1983 923 923 754 169 4066 2,391
00380 BUILDING 24 2401 1983 21,753 21,753 17,764 3,989 4066 56,344 00381 BUILDING 24 2401 1983 43,983 43,983 35,917 8,066 4066 113,924 00382 BUILDING 24 2401 1983 190,504 190,504 155,568 34,936 4066 493,440 00383 BUILDING 24 2401 1983 34,536 34,536 28,203 6,333 4066 89,455 00384 PROPERTY IMPROVEMENT 24 2401 1983 8,549 8,549 6,981 1,568 4066 22,143 00385 PROPERTY IMPROVEMENT 24 2401 1983 3,360 3,360 2,744 616 4066 8,703 00386 PROPERTY IMPROVEMENT 24 2401 1983 923 923 754 169 4066 2,391 00387 PROPERTY IMPROVEMENT 24 2401 1983 9,454 9,454 7,720 1,734 4066 24,488 00388 PROPERTY IMPROVEMENT 24 2401 1983 55,602 55,602 45,405 10,197 4066 144,019 00389 PROPERTY IMPROVEMENT 24 2401 1983 1,516 1,516 1,238 278 4066 3,927 00390 PROPERTY IMPROVEMENT 24 2401 1983 3,464 3,464 2,829 635 4066 8,972 00391 FENCING, APPROX. 625 LIN. FT. 24 2499 1983 0000 4066 0 00392 REDWOOD PICKET 24 2499 1983 8,229 8,229 8,229 0 4066 21,315 00420 BUILDING, PUMP STATION NO. 26, 26 2601 1985 0000 4195 0 00421 BUILDING 26 2601 1985 126,970 126,970 97,072 29,898 4195 318,762 00423 SPRINKLER CONTROLLER, RC7A/B192346 26 2601 1985 251 251 187 64 4195 630 00424 LOUVER ACTIVATOR, MA 418‐002 26 2601 1985 502 502 384 118 4195 1,260 00425 BUILDING, PUMP STATION NO. 27, 27 2701 1983 0000 4066 0 00427 BUILDING 27 2701 1983 20,757 20,757 16,950 3,807 4066 53,764 00428 BUILDING 27 2701 1983 923 923 754 169 4066 2,391
00429 BUILDING 27 2701 1983 1,767,194 1,767,194 1,443,114 324,080 4066 4,577,354 00430 BUILDING 27 2701 1983 8,017 8,017 6,547 1,470 4066 20,765 00431 BUILDING 27 2701 1983 540 540 441 99 4066 1,399
00432 36" X 440' 27 2701 1983 30,461 30,461 24,875 5,586 4066 78,900 00433 24" X 65' 27 2701 1983 3,323 3,323 2,714 609 4066 8,607 00434 BUILDING 27 2701 1983 7,384 7,384 6,030 1,354 4066 19,126 00435 BUILDING 27 2701 1983 111,997 111,997 91,458 20,539 4066 290,093 00436 BUILDING 27 2701 1983 3,850 3,850 3,144 706 4066 9,972 00437 BUILDING 27 2701 1983 2,769 2,769 2,261 508 4066 7,172 00438 16" X 40' 27 2701 1983 1,384 1,384 1,130 254 4066 3,585 00439 48" X 120' 27 2701 1983 11,630 11,630 9,497 2,133 4066 30,124 00440 30" X 650' 27 2701 1983 38,235 38,235 31,223 7,012 4066 99,036 00441 2" GSP 27 2701 1983 8,549 8,549 6,981 1,568 4066 22,143 00442 PROPERTY IMPROVEMENT 27 2701 1983 3,093 3,093 2,526 567 4066 8,011 00443 PROPERTY IMPROVEMENT 27 2701 1983 2,507 2,507 2,047 460 4066 6,494 00444 PROPERTY IMPROVEMENT 27 2701 1983 923 923 754 169 4066 2,391 00445 PROPERTY IMPROVEMENT 27 2701 1983 9,527 9,527 7,780 1,747 4066 24,677 00446 PROPERTY IMPROVEMENT 27 2701 1983 24,877 24,877 20,315 4,562 4066 64,436 00447 PROPERTY IMPROVEMENT 27 2701 1983 1,550 1,550 1,266 284 4066 4,015 00451 CRANE, 4M801, 7 1/2 HP, 5 TON 27 2701 1983 32,704 32,704 26,707 5,997 4066 84,709 00452 120 V. TIME CLOCK/BLDG EXTERIOR 27 2701 1983 502 502 410 92 4066 1,300 00453 CRANE, 4M801 27 2701 1983 502 502 410 92 4066 1,300 00454 INTERCOM SYSTEM 27 2701 1983 2,585 2,585 2,111 474 4066 6,696 00455 2 TON CAPACITY 27 2701 1983 12,638 12,638 10,320 2,318 4066 32,735