St. Helena City Council
May 9, 2023

RECOMMENDED ACTION
Based on the information presented, staff recommends City Council deny the appeal for penalties incurred during the Phase II emegency.

ATTACHMENTS
Attachment 1 - 012423 Staff Report Hoff Appeal
Attachment 2 - 012623 Email
Attachment 3 - Address Change
Attachment 4 - Billing Statements
Attachment 5 - Historical Use 2600 Spring Mtn Rd
Attachment 6 - 2600 Spring Mountain Road
Attachment 7 - Resolution - Water Penalty Appeal Duane and Susan Hoff Attachment 8 - Exception Permit - Completed
Attachment 9 - 04.28.23 Letter to City Council from the Hoff's Attachment 10 - Resolution - Water Penalty Appeal Duane and Susan Hoff Agenda Item #11.1.

Report to the City Council
Regular City Council - 24 Jan 2023
Agenda Section: NEW BUSINESS
Subject: Water Penalty Appeal - Duane and Susan Hoff
CEQA
Determination:

Not a CEQA project
Prepared By: April Mitts, Assistant City Manager
Reviewed By: April Mitts, Assistant City Manager
Approved By: Anil Comelo, City Manager

BACKGROUND
On October 27, 2020, the City Council established Phase II Water Regulations and, in accordance with the St. Helena Municipal Code (SHMC), established the Water Advisory Board. In June 2021, the City began charging penalties for water use which exceeded allocations as determined by the SHMC.

The City of St. Helena is committed to preventing water waste but also understands that, infrequently, a water leak may occur. When a water leak does occur, customers can request a credit to their utility bill for a portion of the excess water in accordance with PFI-0005 Leak Adjustment Policy. This policy provides relief to St. Helena water customers who have had a leak that is not due to negligent or willful acts. Under the current Leak Adjustment Policy, leak adjustments are not granted if the City is in a Phase I or higher water emergency or subject to water use limitations by the State of California. However, recognizing the City’s conservation efforts as well as the authority granted under P-FI0005 for Leak Adjustment appeals, any request for a leak adjustment during a Phase II or Phase III emergency are being evaluated by the City Manager.

In addition to the ability to qualify for a leak adjustment, the City recognized that during a Phase II or Phase III water emergency, penalties may have been incurred as a result of a leak. On July 27, 2021, the City Council adopted a resolution designating that the Water Advisory Board can hear/make a determination for reduction of penalties for those customers who receive a penalty as a result of a water leak.

Agenda Item #11.1.

On August 6, 2021, the Water Advisory Board adopted policy - P-FI-0022 Leak Adjustment Policy – Phase II and Phase III Water Penalties and the applicable Application Form, to assist those customers who incurred penalties as a result of a water leak.

Per the established policy, the following criteria must be met:

1. The customer must have not received a leak letter for 2 or more consecutive months or can demonstrate there is a good faith effort to actively locate and fix leaks.

2. All leak(s) must be beyond the control of the owner, agents, tenants, contractors, or anyone occupying the property or using the property that could have reasonably foreseen such a possible leak.

3. The leak(s) cannot be the result of negligent, willful nor neglectful behavior.

4. Proof that the repairs were completed must be included with all requests for a penalty leak adjustment. Examples include a copy of the plumber’s invoice or hardware store receipts showing items purchased or proof provided by the City that water use had returned to normal levels during subsequent months.

Over the course of several months, the Water Advisory Board considered penalty leak adjustment amounts on a case-by-case basis.

DISCUSSION
Duane and Susan Hoff have filed a request for fee waiver for penalties incurred on their water account in June, July, and August 2021 totalling $251,379.28 (Attachment 1). The penalties imposed were not the result of a leak; therefore, the request for fee waiver does not fall under the authority of the Water Advisory Board (WAB) and the amount exceeds the authority granted to the City Manager; therefore, it is being presented to the City Council for consideration.

The customer has submitted the following statement as their appeal:
“Our penalty waiver request was submitted as a result of the penalty forgiveness program that was approved by the city on 7/27/21, which stipulates that a customer can have penalties forgiven if they do not exceed their allocation in August, September, October, and November of 2021. Once the program was approved, notices (dated 8/11/21) were mailed and received on 8/23/21. Upon receipt, we drastically reduced our water usage and strictly adhered to our allocations for September - November with no overages during those periods.

Given that notice of the forgiveness program was not received until 8/23/21, we were given no opportunity to adjust water usage in August for full compliance with the program guidelines. As a result, we are requesting that the water penalties be fully waived for our adherence to the forgiveness program during September – November (and subsequent months)”
Agenda Item #11.1.

Tables 1 through 4 provides additional information for Council Consideration.

Table 1: Dates Specific Notices were Mailed to Utility Customers (Attachments 2-7) Type of Notice* Date Mailed by City
(through Moonlight)
Attachment 2 - Letter to Residents re: Phase II Emergency, household allocation, household survey January 21, 2021 Attachment 3 - Notice of Customer Allocation, Typical Use for June vs. Allocation for June, and Penalty Structure (Specific to Customer)
May 21, 2021
Attachment 4 - June Monthly Allocation Update - Over
Allocation for June and Notification of Penalty Forgiveness Program (Specific to Customer)
July 15, 2021
Attachment 5 - May and June Account Statement - Includes a Special Message regarding the Penalty Forgivenss Program (Specific to Customer)
July 15, 2021
Attachment 6 - July Monthly Allocation Update - Over
Allocation for July and Notification of Penalty Forgiveness Program (Specific to Customer)
August 11, 2021
Attachment 7 - August Montly Allocation Update - Over
Allocation for August (Specific to Customer) September 15, 2021 Attachment 8 - Notice of Water Usage Penalty Assessment - Did not qualify for Penalty Foregiveness Program (Specific to Customer)
Estimated date
mailed:

December 23, 2021
* Please note this is not an exhaustive list of customer outreach, but a list of specific letters sent regarding allocations and penalties.

Table 2: Current Allocation - based on a 30-day Month
Gallons HCF
Number in Household 2 3,900
Outdoor Summer Allocation 2,500
Additonal Exception (large lot) 8,000
TOTAL ALLOCATION 14,400 19.25
Table 3: Penalties Imposed
Month Amount Penalty Waiver
Request
Over Allocation
HCF
Over
Allocation
Gallons
June 68,205.48 68,205.48 305.75 228,716
July 122,041.90 122,041.90 515.75 385,807
August 61,131.90 61,131.90 271.75 203,283
TOTALS 251,379.28 251,379.28 1,093.25 817,806
Agenda Item #11.1.

Table 4: Historical Monthly Use
Jan Feb March April May June July Aug Sept Oct Nov Dec
2022 4 7 10 6 25 4 14 15 11 9 6 9
2021* 98 300 133 571 154 325 535 291 15 13 11 10
2020 33 40 53 47 57 69 75 478 495 496 119 127
2019 29 29 38 156 75 151 86 199 107 118 57 30
Penalties were incurred in June, July, and August 2021.

Duane and Susan Hoff are requesting to have 100% of the penalties waived totaling $251,379.28.

FISCAL IMPACT
Dependent on City Council direction.

RECOMMENDED ACTION
Discuss and make a determination on penalty appeal. Council may consider the following three options:

1. Approve the appeal in its entirety for an amount of $251,379.28

2. Grant a portion of the appeal for an amount determined by City Council

3. Deny the appeal in its entirety

ATTACHMENTS
Attachment 1 - Hoff Leak Appeal
Attachment 2 - Letter for Residential Customers 012121
Attachment 3 - Notice of Allocations and Penalty Structure 052121 Attachment 4 - Hoff July 2021 Billing Statement
Attachment 5 - Monthly Allocation Update - June Penalties Assessed Attachment 6 - Monthly Allocation Update - July Penalties Assessed Attachment 7 - Montly Allocation Update - August Penalties Attachment 8 - Notice of Water Useage Penalty Assesement did not meet requirements of Penalty Forgivenss Program 122121
Attachment 9 - Resolution - Water Penalty Appeal Duane and Susan Hoff Agenda Item #11.1.

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Agenda Item #11.1.

City of St. Helena
“We will conduct city affairs on behalf of our citizens using an open and creative process.”
City of St. Helena  1572 Railroad Avenue, St. Helena, CA 94574 Website: www.cityofsthelena.org
January 21, 2021
The City of St. Helena is currently experiencing a Phase II Water Emergency which limits customer water usage. With the proactive conservation actions of our water customers, we can reduce the potential imbalance between water supply and demand.

Under the Phase II emergency, the residential customer’s water allocation is based number of persons in a household and allocates 65 gallons per day per person (1,950 gallons per month based on a 30-day month). This equates to approximately 2.6 units per person per month.

To determine the correct allocation per household, the City has included the attached information for your review and response by February 15, 2021. Please complete the online Household Survey as soon as possible at:
http://www.cityofsthelena.org/watersurvey or return by mail/drop off at Interim City Hall, located at 1572 Railroad Avenue, St. Helena, CA 94574.

Please note that if the City does not receive a response, your water allocation will assume there are two persons in your household.

We invite you to contact City staff if you have a question at (707) 968-2745 or by email at [email protected].

Thank you in advance for your conservation efforts as we work together to maintain this critical resource!
Sincerely,
Mark T. Prestwich
City Manager
Agenda Item #11.1.

A Phase II Water Emergency began on October 27, 2020. To comply with the Phase II Water Emergency, the City is asking for your help by completing the quick survey below. Alternatively, the survey can be completed at: https://www.cityofsthelena.org/watersurvey.

The City is requesting that all responses to this survey are received by March 15, 2021. Any responses not received will assume 2 persons per household.

St. Helena Phase II Water Emergency Household Survey
Surveys can be returned via
the following methods:
email: [email protected]
or
Mail to: City Hall
Attn: Water Department
1572 Railroad Avenue
St. Helena, CA 94574
Survey Due By:
03/15/2021
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968‐2745
May 21, 2021
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis MN, 55416

Account number: 006087-000 Service Address: 2600 Spring Mtn Rd

Dear Hoff Duane & Susan,
Like many California communities, St. Helena is facing a water crisis. Lack of rain and use of water from Bell Canyon Reservoir to fight last year’s wildfires has contributed to this worsening emergency.

As we did last year during wildfire season and throughout COVID-19, we must pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase III.

Doing Your Part
 Starting today, and through the remainder of the water crisis, we are calling on customers to use water efficiently and keep their residential indoor water use below 65 gallons per person per day.
 During the summer period, residential customers must also limit outdoor irrigation to no more than 2,500 gallons per month. Known as an “allocation,” some residential customers prefer to think of the 2,500 gallons per month as a monthly water budget for discretionary outdoor watering.

Penalties for Inefficient Water Use, Effective June 1, 2021 In recognition of the dire situation, City Council recently adopted a penalty structure for customers who exceed their property’s monthly water allocation. These penalties are designed to minimize the impact on those bills that exceed the allocation by a little bit, while sending a strong message to unusually heavy water users.

Exceed Monthly Water
Allocation By
Penalty per Hundred Cubic
Feet (748 Gallons)
$ per Gallon
Exceeded
Less than 25%
(up to 24.999%) $10.00 $0.013
25-50% (25-49.999%) $25.00 $0.033
50-100% (50-99.999%) $100.00 $0.134
Greater than 100% $250.00 $0.334
For Perspective
As a point of comparison, below is the water consumption we recorded on your account in the same month in 2019 (due to COVID, 2020 use was not used).

June 2019 water use: 75.00 units, or 56108.00 gallons.

June 2021 Summer Monthly Allocation: 9.35 units, or 6995.00 gallons.

We’re in This Together!
The enclosed fact sheet provides more information and provides helpful tips on indoor and outdoor water conservation. Thank you for your work to help us get through this difficult time together as a community. As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
8/20/2021
7/15/2021
5/1/2021 to 6/30/2021
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 4/29/2021 8485 5/26/2021 8639 154
007055774 5/26/2021 8639 6/28/2021 8964 325

SPECIAL MESSAGE CURRENT CHARGES
If your bill includes penalties, please note that the penalty amount on your bill represents 25% of your total June
Penalty. The remaining 75% of your penalty has been
temporarily suspended and can be forgiven or become
payable pursuant to the City Council's Penalty Forgiveness Program. For additional information please contact the St.

Helena Finance Division at (707) 968-2745. Information
pertaining to the Penalty Forgiveness Program is available at www.cityofsthelena.org/utility-billing.

Water Base Fee 1.5" Residential 418.50
Water Use @ $7.44 3,563.76
June Excess Penalty 19,240.98
TOTAL CURRENT CHARGES 23,223.24

BILL SUMMARY
Previous Balance 5,128.26
Thank you for your payment. -10,256.52
Adjustments 5,128.26
Additional Billing 19,240.98
Current Charges 3,982.26
TOTAL AMOUNT DUE 23,223.24
0 200
400
600
800
1000

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Water Use in HCF
Prior Usage Current Usage

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT AUTO PAY *U000608700023223.24*

AMOUNT DUE

AMOUNT ENCLOSED

TOTAL AMOUNT DUE BY
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
7/15/2021
8/20/2021
5/1/2021 to 6/30/2021
8/20/2021 23,223.24
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
July 15, 2021
Duane & Susan Hoff
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Dear Duane & Susan Hoff,
MONTHLY ALLOCATION UPDATE – OVER ALLOCATION
Like many California communities, St. Helena is facing a water crisis. Lack of rain and use of water from Bell Canyon Reservoir to fight last year’s wildfires has contributed to this worsening emergency.

This letter is being provided as a monthly update for your actual water use.

Actual Water Use Update
Your June 2021 water allocation was: 9.350 units, or 6,994 gallons.

The meter read for June reflects the following use 324.360 units, or 242,637 gallons.

Penalties
In recognition of the dire situation, City Council adopted a penalty structure for customers who exceed their property’s monthly water allocation. These penalties are designed to minimize the impact on those bills that exceed the allocation by a little bit, while sending a strong message to unusually heavy water users. Given this is the first-time penalties have been imposed, on July 13, 2021, City Council adopted a program to suspend 75% of the penalties for overuse in June 2021 and to suspend 50% of the penalties for overuse in July 2021 with the ability for customers to have 100% of the penalties forgiven if allocation targets are met, see enclosure for additional information. Below is a summary of the penalties that will be assessed on your water utility account.

Because you exceeded your June 2021 water allocation by: 315.010 units, or 235,643 gallons you are being assessed a penalty in the amount of $19,240.98. This penalty amount represents 25% of the total penalty amount of: $76,963.90. This penalty will be added to your bi-monthly utility bill.

Continuing Water Conservation
It is not too late to start conserving water! As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! As we did last year during wildfire season and throughout COVID-19, we must pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase III.

Learn More
For more information and tips for how you can do your part to help our community navigate through the current drought, visit www.cityofsthelena.org!
Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
July 15, 2021
Duane & Susan Hoff
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Estimado Duane & Susan Hoff,
ASIGNACION MENSUAL ACTUALIZADA – SOBRE ASIGNACIÓN
Como muchos Californianos, St. Helena se enfrenta a una crisis de agua. La falta de lluvia y el uso de agua del embalse de Bell Canyon para combatir los incendios forestales del año pasado ha contribuido a empeorar esta emergencia. Esta carta se proporsinara como una actualizacion mensual para su uso actual del agua.

Actualización real del uso del agua
Su asignación de agua en el mes de junio 2021 fue: 9.350 unidades, o 6,994 galones.

El medidor de agua para el mes de junio refleja el siguiente uso de 324.360 unidades o 242,637 galones.

Penalidades
En reconocimiento de la grave situación, el Concejo Municipal adoptó una estructur para los clientes que excedan la asignación mensual de agua de su propiedad. Estas penalidades están diseñadas para minimizar el impacto en aquellas facturas que exceden la asignación por un poco, al tiempo que envía un mensaje contundente a los usuarios de agua inusualmente pesada. Dado que es la primera vez que las penalidades han sido impuestas, en Julio 13, 2021, el Consejo Municipal adopto un programa para suspender 75% de las penalidades por el sobreuso en Junio 2021 y para suspender 50% de las penalidades de sobreuso en Julio 2021 con la abilidad de que los clientes tengan 100% de las penalidades perdonadas si se cumplen las metas de asignaciones, vea el folleto para mas informacion. Abajo hay un resumen de las penalidades que seran evaluadas en su cuenta de agua.

Debido a que excediste tu asignación de agua junio 2021 por: 315.010 unidades, o 235,643 galones, se le aplicara una penalidad por la cantidad de $19,240.98. Esta cantidad representa 25% de la penalidad total de: $76,963.90. Esta penalidad se agregará a su factura de servicios públicos bimestral.

Conservación continua del agua
¡No es demasiado tarde para empezar a conservar el agua! Como lo hemos hecho en el pasado, no tenemos ninguna duda de que nuestros amigos y vecinos de St. Helena saldrán de esta crisis más fuertes y resistentes que nunca. Como hicimos el año pasado durante la temporada de incendios forestales y durante todo el COVID-19, debemos unirnos como comunidad para superar esta sequía.

Si no lo hacemos, es inevitable que nos veremos obligados a pasar de las restricciones de agua de la Fase II en vigor a las restricciones más estrictas necesarias de la Fase III.

Aprende más
Para obtener más información y consejos sobre cómo puede hacer su parte para ayudar a nuestra comunidad a navegar a través de la sequía actual, visite www.cityofsthelena.org! ¿Tiene Preguntas?
Comuníquese con el personal de la Ciudad al (707) 968-2745 o por correo electrónico al [email protected].

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
August 11, 2021
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Dear Hoff Duane & Susan,
MONTHLY ALLOCATION UPDATE – NOTICE OF WATER PENALTY
Like many California communities, St. Helena is facing a critical water crisis. Lack of rain and use of water from Bell Canyon Reservoir to fight last year’s wildfires has contributed to this worsening emergency. This letter is being provided as a monthly update for your actual water use and notice that your water usage in June 2021 has resulted in a penalty.

Actual Water Use Update
Your July 2021 water allocation was: 8.500 units, or 6,358 gallons. The meter read for July reflects the following use 535.030 units, or 400,229 gallons.

Penalties
In recognition of the dire situation, City Council adopted a penalty structure for customers who exceed their property’s monthly water allocation. These penalties are designed to minimize the impact on those bills that exceed the allocation by a little bit, while sending a strong message to unusually heavy water users. Given this is the first-time penalties have been imposed, on July 13, 2021, City Council adopted a program to suspend 75% of the penalties for overuse in June 2021 and to suspend 50% of the penalties for overuse in July 2021 with the ability for customers to have 100% of the penalties forgiven if allocation targets are met, in the months of August, September, October, and November 2021 (see enclosure for additional information). Below is a summary of the penalties that will be assessed on your water utility account.

Because you exceeded your July 2021 water allocation by: 526.530 units, or 393,871 gallons you are being assessed a penalty in the amount of $65,003.40. This penalty amount represents 50% of the total penalty amount of: $130,006.80. This penalty will be added to your bi-monthly utility bill.

Continuing Water Conservation
It is not too late to start conserving water! As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! As we did last year during wildfire season and throughout COVID-19, we must pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase III.

Learn More
For more information and tips for how you can do your part to help our community navigate through the current drought, visit www.cityofsthelena.org!
Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
August 11, 2021
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Estimado Hoff Duane & Susan,
ASIGNACION MENSUAL ACTUALIZADA – AVISO DE PENALIDAD DE AGUA Como muchos Californianos, St. Helena se enfrenta a una crisis de agua crítica. La falta de lluvia y el uso de agua del embalse de Bell Canyon para combatir los incendios forestales del año pasado ha contribuido a empeorar esta emergencia. Esta carta se proporciona como una actualizacion mensual para su uso actual del agua y aviso que su uso de agua en junio del 2021 ha resultado en una penalidad.

Actualización real del uso del agua
Su asignación de agua en el mes de julio 2021 fue: 8.500 unidades, o 6,358 galones. El medidor de agua para el mes de julio refleja el siguiente uso de 535.030 unidades o 400,229 galones.

Penalidades
En reconocimiento de la grave situación, el Concejo Municipal adoptó una estructur para los clientes que excedan la asignación mensual de agua de su propiedad. Estas penalidades están diseñadas para minimizar el impacto en aquellas facturas que exceden la asignación por un poco, al tiempo que envía un mensaje contundente a los usuarios de agua inusualmente pesada. Dado que es la primera vez que las penalidades han sido impuestas, en Julio 13, 2021, el Consejo Municipal adopto un programa para suspender 75% de las penalidades por el sobreuso en Junio 2021 y para suspender 50% de las penalidades de sobreuso en Julio 2021 con la abilidad de que los clientes tengan 100% de las penalidades perdonadas si se cumplen las metas de asignaciones en los meses de agosto, septiembre, octubre y noviembre de 2021 (consulte el folleto para obtener información adicional).

Abajo hay un resumen de las penalidades que seran evaluadas en su cuenta de agua.

Debido a que excediste tu asignación de agua julio 2021 por: 526.530 unidades, o 393,871 galones, se le aplicara una penalidad por la cantidad de $65,003.40. Esta cantidad representa 50% de la penalidad total de: $130,006.80. Esta penalidad se agregará a su factura de servicios públicos bimestral.

Conservación continua del agua
¡No es demasiado tarde para empezar a conservar el agua! Como lo hemos hecho en el pasado, no tenemos ninguna duda de que nuestros amigos y vecinos de St. Helena saldrán de esta crisis más fuertes y resistentes que nunca. Como hicimos el año pasado durante la temporada de incendios forestales y durante todo el COVID-19, debemos unirnos como comunidad para superar esta sequía.

Si no lo hacemos, es inevitable que nos veremos obligados a pasar de las restricciones de agua de la Fase II en vigor a las restricciones más estrictas necesarias de la Fase III.

Aprende más
Para obtener más información y consejos sobre cómo puede hacer su parte para ayudar a nuestra comunidad a navegar a través de la sequía actual, visite www.cityofsthelena.org! ¿Tiene Preguntas?
Comuníquese con el personal de la Ciudad al (707) 968-2745 o por correo electrónico al [email protected].

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
September 15, 2021
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Dear Hoff Duane & Susan,
MONTHLY ALLOCATION UPDATE – NOTICE OF WATER PENALTY
Like many California communities, St. Helena is facing a critical water crisis. Lack of rain and use of water from Bell Canyon Reservoir to fight last year’s wildfires has contributed to this worsening emergency. This letter is being provided as a monthly update for your actual water use and notice that your water usage in August 2021 has resulted in a penalty.

Actual Water Use Update
Your August 2021 water allocation was: 16.520 units, or 12,358 gallons. The meter read for August reflects the following use 291.390 units, or 217,974 gallons.

Penalties
In recognition of the dire situation, City Council adopted a penalty structure for customers who exceed their property’s monthly water allocation. These penalties are designed to minimize the impact on those bills that exceed the allocation by a little bit, while sending a strong message to unusually heavy water users. Given this is the first-time penalties have been imposed, on July 13, 2021, City Council adopted a program to suspend 75% of the penalties for overuse in June 2021 and to suspend 50% of the penalties for overuse in July 2021 with the ability for customers to have 100% of the penalties forgiven if allocation targets are met, in the months of August, September, October, and November 2021 (see enclosure for additional information). Below is a summary of the penalties that will be assessed on your water utility account.

Because you exceeded your August 2021 water allocation by: 274.870 units, or 205,616 gallons you are being assessed a penalty in the amount of $65,558.05. This penalty amount represents 50% of the total penalty amount of: $65,558.05. This penalty will be added to your bi-monthly utility bill.

Continuing Water Conservation
It is not too late to start conserving water! As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! As we did last year during wildfire season and throughout COVID-19, we must pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase III.

Learn More
For more information and tips for how you can do your part to help our community navigate through the current drought, visit www.cityofsthelena.org!
Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
September 15, 2021
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Estimado Hoff Duane & Susan,
ASIGNACION MENSUAL ACTUALIZADA – AVISO DE PENALIDAD DE AGUA Como muchos Californianos, St. Helena se enfrenta a una crisis de agua crítica. La falta de lluvia y el uso de agua del embalse de Bell Canyon para combatir los incendios forestales del año pasado ha contribuido a empeorar esta emergencia. Esta carta se proporciona como una actualizacion mensual para su uso actual del agua y aviso que su uso de agua en agosto del 2021 ha resultado en una penalidad.

Actualización real del uso del agua
Su asignación de agua en el mes de agosto 2021 fue: 16.520 unidades, o 12,358 galones. El medidor de agua para el mes de agosto refleja el siguiente uso de 291.390 unidades o 217,974 galones.

Penalidades
En reconocimiento de la grave situación, el Concejo Municipal adoptó una estructur para los clientes que excedan la asignación mensual de agua de su propiedad. Estas penalidades están diseñadas para minimizar el impacto en aquellas facturas que exceden la asignación por un poco, al tiempo que envía un mensaje contundente a los usuarios de agua inusualmente pesada. Dado que es la primera vez que las penalidades han sido impuestas, en Julio 13, 2021, el Consejo Municipal adopto un programa para suspender 75% de las penalidades por el sobreuso en Junio 2021 y para suspender 50% de las penalidades de sobreuso en Julio 2021 con la abilidad de que los clientes tengan 100% de las penalidades perdonadas si se cumplen las metas de asignaciones en los meses de agosto, septiembre, octubre y noviembre de 2021 (consulte el folleto para obtener información adicional).

Abajo hay un resumen de las penalidades que seran evaluadas en su cuenta de agua.

Debido a que excediste tu asignación de agua agosto 2021 por: 274.870 unidades, o 205,616 galones, se le aplicara una penalidad por la cantidad de $65,558.05. Esta cantidad representa 50% de la penalidad total de: $65,558.05. Esta penalidad se agregará a su factura de servicios públicos bimestral.

Conservación continua del agua
¡No es demasiado tarde para empezar a conservar el agua! Como lo hemos hecho en el pasado, no tenemos ninguna duda de que nuestros amigos y vecinos de St. Helena saldrán de esta crisis más fuertes y resistentes que nunca. Como hicimos el año pasado durante la temporada de incendios forestales y durante todo el COVID-19, debemos unirnos como comunidad para superar esta sequía.

Si no lo hacemos, es inevitable que nos veremos obligados a pasar de las restricciones de agua de la Fase II en vigor a las restricciones más estrictas necesarias de la Fase III.

Aprende más
Para obtener más información y consejos sobre cómo puede hacer su parte para ayudar a nuestra comunidad a navegar a través de la sequía actual, visite www.cityofsthelena.org! ¿Tiene Preguntas?
Comuníquese con el personal de la Ciudad al (707) 968-2745 o por correo electrónico al [email protected].

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Dear Hoff Duane & Susan,
SUBJECT: NOTICE OF WATER USAGE PENALTY ASSESSMENT
On July 12, 2021, the St. Helena City Council adopted a penalty forgiveness program. This program provided customers the opportunity to eliminate 100% of their existing June and/or July water usage penalties if their water usage during the months of August, September, October, and November fell below monthly allocations. Customers were required to meet their water allocation target in all four months for the penalties to be forgiven. If a customer did not keep usage below their water allocation target during the four designated months, then any suspended amount would become due and payable to the City.

June and July penalties incurred were temporarily suspended as follows:

Month Description Penalty
Charge
Penalty
Temporarily
Suspended
Example
June
2021
Customer will be charged 25% of
their assessed penalty for being over
their allocation.
25% 75%
If a customer’s penalty
is $100, they will only
be charged $25
July
2021
Customer will be charged 50% of
their assessed penalty for being over
their allocation.
50% 50%
If a customer’s penalty
is $100, they will only
be charged $50
During the month(s) of August, your water use exceeded your monthly allocation. Therefore, the temporarily suspended penalty(s) will be applied to your account:

Month Previously Billed
Penalty Suspended Penalty Billed Total Penalty Billed
June 2021 $17,051.37 $51,154.11 $68,205.48
July 2021 $61,020.95 $61,020.95 $122,041.90
The Water Advisory Board has developed criteria for consideration of penalty waivers. Customers can learn more about this potential option by visiting: https://www.cityofsthelena.org/wateremergency/page/leak-adjustments-during-water-emergency.

Account number:
006087-000
Service Address:
2600 Spring Mtn Rd
Agenda Item #11.1.

Continuing Water Conservation to Avoid Additional Penalties As a community, it is still important to continue water conservation. This will help retain the water supply as well as help you avoid any further penalties. We invite you to contact the City’s Environmental Services Technician at (707) 312-1372 to assist you with water conservation strategies. As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! It is important that we pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase III.

Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Agenda Item #11.1.

CITY OF ST. HELENA
RESOLUTION NO. 2023-
Resolution of the City Council of the City of St. Helena Making Findings and Determinations Regarding the
Water Penalty Appeal of Duane and Susan Hoff
WHEREAS, On October 27, 2020, the City Council established Phase II Water Regulations and, in accordance with the St. Helena Municipal Code (SHMC), established the Water Advisory Board; and
WHEREAS, In June 2021, the City began charging penalties for water use which exceeded allocations as determined by the SHMC; and
WHEREAS, the City recognized that during a Phase II or Phase III water emergency, penalties may have been incurred as a result of a leak. On July 27, 2021, the City Council adopted a resolution designating that the Water Advisory Board can hear/make a determination for reduction of penalties for those customers who receive a penalty as a result of a water leak; and
WHEREAS, Duane and Susan Hoff have filed a request for fee waiver for the penalties incurred on their water account in June, July, and August 2021 totaling $251,379.28. The penalties imposed were not the result of a leak; therefore, the request for fee waiver does not fall under the authority of the Water Advisory Board (WAB) and the amount exceeds the authority granted to the City Manager; therefore, it is being presented to the City Council for consideration; and WHEREAS, the City Council has reviewed the penalty appeal for Duane and Susan Hoff and has made the determination as noted below.

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. HELENA AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council has considered the circumstances of the appeal.

SECTION 3. The City Council has determined the following:
_____ Deny the appeal in its entirety
_____ Approve the appeal in its entirety for an amount of $251,379.28 Agenda Item #11.1.

_____ Grant a portion of the appeal for an amount of $__________ Approved at a Regular Meeting of the St. Helena City Council on January 24, 2023, by the following vote:

Mayor Paul Dohring: _____
Vice Mayor Eric Hall: _____
Council Member Anna Chouteau: _____
Council Member Lester Hardy: _____
Council Member Billy Summers: _____
APPROVED: ATTEST:
______________________ ________________________
Paul Dohring, Mayor Cindy Tzafopoulos, City Clerk
Agenda Item #11.1.

From: April Mitts
To: Bryan Rohde
Cc: Martin Beltran; Mandy Kellogg; Alex Radunz
Subject: RE: [External] Request for Fee Waiver
Date: Thursday, January 26, 2023 10:26:00 AM
Attachments: image002.png
Hi Bryan,
I hope you are doing well. I wanted to provide you with an update of the appeal hearing from this past Tuesday (1/24). The City’s records indicate the water connection on the property is for residential and the allocation is based off of residential use. However, at the meeting Mr. Proctor mentioned there are other uses on the property. Because of this the Council voted to continue the item to give staff an opportunity to gather additional information regarding water use on the property and the current calculated allocation.

Thank you and I will keep you posted and let you know if I need additional information from your end.

April Mitts
Assistant City Manager
1572 Railroad Avenue
St. Helena, CA 94574
707.968.2751
[email protected]
From: Bryan Rohde <[email protected]>
Sent: Monday, December 12, 2022 2:06 PM
To: April Mitts <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi April,
That’s correct. Please see below for the earlier communication:

Thanks,
Bryan
Bryan Rohde | Senior Financial Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 | MOBILE 507.858.5599
From: April Mitts <[email protected]>
Sent: Monday, December 12, 2022 12:06 PM
To: Bryan Rohde <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz Agenda Item #11.1.

<[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi Bryan,
I believe you sent another email (and I can’t find it) confirming that you would like this item to be heard by the Council on 1/24/23, is that correct and that a representative will be there to be able to provide any context and/or answer any questions the Council may have in the appeal.

Thank you for your time and patience and I look forward to hearing back from you.

April Mitts
Assistant City Manager
1572 Railroad Avenue
St. Helena, CA 94574
707.968.2751
[email protected]
From: Bryan Rohde <[email protected]>
Sent: Monday, December 5, 2022 1:41 PM
To: April Mitts <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Thanks April. I will discuss internally and reach back out.

Bryan Rohde | Senior Financial Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 | MOBILE 507.858.5599
From: April Mitts <[email protected]>
Sent: Monday, December 5, 2022 1:39 PM
To: Bryan Rohde <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi Bryan,
Thank you for reaching out. I had it on my list to follow-up with you today. I have not had confirmation for the other 3 that were scheduled for next week. I do have one scheduled for the second meeting in January (January 24th), so if that meeting works better I can easily have your appeal heard on that day.

Just let me know.

Thanks.

April Mitts
Assistant City Manager
1572 Railroad Avenue
St. Helena, CA 94574
707.968.2751
[email protected]
From: Bryan Rohde <[email protected]>
Sent: Monday, December 5, 2022 11:34 AM
Agenda Item #11.1.

To: April Mitts <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi April,
Will other appeals be brought forward to the City Council Meeting on 1/10 or is ours the only one on the docket? It may be difficult for in-person attendance, but don’t want that to interfere with our ability to have the penalty forgiven.

Thanks for reaching out,
Bryan
Bryan Rohde | Senior Financial Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 | MOBILE 507.858.5599
From: April Mitts <[email protected]>
Sent: Tuesday, November 29, 2022 5:01 PM
To: Bryan Rohde <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi Bryan,
I wanted to reach out to you regarding your pending Penalty Appeal. Initially this was scheduled to be heard by the City Council on 12/13/22; however, this item is going to be pushed out to January 10, 2023.

Please note the Council meeting start at 6:00 p.m. and are in-person here in St. Helena.

Please let me know if you are able to be at the meeting on this date, if not, we can look at the January 24th meeting.

Thank you and I look forward to hearing from you and I am sorry for any inconvenience this may cause.

April Mitts
Assistant City Manager
1572 Railroad Avenue
St. Helena, CA 94574
707.968.2751
[email protected]
From: April Mitts
Sent: Tuesday, November 1, 2022 3:12 PM
To: 'Bryan Rohde' <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi Bryan,
Thank you for your email – I have put this information in your file for the report.

April Mitts
Assistant City Manager
1572 Railroad Avenue
Agenda Item #11.1.

St. Helena, CA 94574
707.968.2751
[email protected]
From: Bryan Rohde <[email protected]>
Sent: Tuesday, November 1, 2022 2:42 PM
To: April Mitts <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi April,
We would like the following added to the report that is being brought to council. “Our penalty waiver request was submitted as a result of the penalty forgiveness program that was approved by the city on 7/27/21, which stipulates that a customer can have penalties forgiven if they do not exceed their allocation in August, September, October, and November of 2021. Once the program was approved, notices (dated 8/11/21) were mailed and received on 8/23/21. Upon receipt, we drastically reduced our water usage and strictly adhered to our allocations for September - November with no overages during those periods.

Given that notice of the forgiveness program was not received until 8/23/21, we were given no opportunity to adjust water usage in August for full compliance with the program guidelines. As a result, we are requesting that the water penalties be fully waived for our adherence to the forgiveness program during September – November (and subsequent months)” Please let us know if you have any questions.

Thanks,
Bryan
Bryan Rohde | Senior Financial Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 | MOBILE 507.858.5599
From: April Mitts <[email protected]>
Sent: Wednesday, October 26, 2022 3:50 PM
To: Bryan Rohde <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Hi Bryan,
I apologize, I thought I had responded to your email. Yes, we do advise that customers who are filing the appeals are at the meeting so Council can direct any questions directly to them. I will utilize the information already provided in the staff report for the appeal as well as any pertinent, historical use information. If there is anything specific you would like staff to add to the report, please notify both myself and Martin Beltran.

I hope that helps and please do not hesitate to reach out with any questions.

April Mitts
Assistant City Manager
1572 Railroad Avenue
St. Helena, CA 94574
707.968.2751
[email protected]
Agenda Item #11.1.

From: Bryan Rohde <[email protected]>
Sent: Wednesday, October 26, 2022 1:20 PM
To: April Mitts <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: [External] Request for Fee Waiver
Good afternoon April,
Checking back on this email chain for your input. Appreciate your help, Bryan
Bryan Rohde | Senior Financial Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 | MOBILE 507.858.5599
From: Bryan Rohde
Sent: Monday, October 17, 2022 4:50 PM
To: April Mitts <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]>; Alex Radunz <[email protected]>
Subject: RE: Request for Fee Waiver
Hi April,
Thank you for the email below. Glad to see a timeline has been sent for this to be brought to council. Are you advising residents to attend the meeting? What time of additional information would be necessary to bring forward? Thanks again,
Bryan
Bryan Rohde | Senior Financial Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 | MOBILE 507.858.5599
From: April Mitts <[email protected]>
Sent: Thursday, October 13, 2022 7:34 PM
To: Bryan Rohde <[email protected]>
Cc: Martin Beltran <[email protected]>; Mandy Kellogg <[email protected]> Subject: Request for Fee Waiver
Hi Bryan,
First, let me say thank you for your patience as the City reviews all of the penalty appeals. Because your request to appeal the penalties it outside the purview of the Water Advisory Board and Administrative approval (which is solely related to leaks), staff will need to bring this appeal to the City Council for consideration.

We are looking to bring this item to Council on December 13, 2022. Please note the Council meeting start at 6:00 p.m. and are inperson here in St. Helena. Please let me know if you are able to be at the meeting on this date to provide additional information to the Council, if necessary.

Thank you and I look forward to hearing from you.

April Mitts
Assistant City Manager
1572 Railroad Avenue
Agenda Item #11.1.

St. Helena, CA 94574
707.968.2751
[email protected]
Agenda Item #11.1.

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Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
6600 France Ave South STE 550
Minneapolis, MN 55435
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
4/17/2023
3/15/2023
1/1/2023 to 2/28/2023
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 12/28/2022 9959 1/25/2023 9965 6
007055774 1/25/2023 9965 3/1/2023 9973 8

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 96.18
TOTAL CURRENT CHARGES 547.46
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit: https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 251,945.01
Thank you for your payment. -565.73
Adjustments -11.40
Additional Billing 0.00
Current Charges 547.46
TOTAL AMOUNT DUE 251,915.34
0 100
200
300
400
500
600

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 4/17/2023

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000251915.34*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
6600 France Ave South STE 550
Minneapolis, MN 55435
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
3/15/2023
4/17/2023
1/1/2023 to 2/28/2023
251,915.34
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
2/21/2023
1/17/2023
11/1/2022 to 12/31/2022
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 11/28/2022 9950 12/28/2022 9959 9
007055774 10/27/2022 9944 11/28/2022 9950 6

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 114.45
TOTAL CURRENT CHARGES 565.73
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit: https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 251,983.16
Thank you for your payment. -603.88
Adjustments 0.00
Additional Billing 0.00
Current Charges 565.73
TOTAL AMOUNT DUE 251,945.01
0 100
200
300
400
500
600

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 2/21/2023

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000251945.01*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
1/17/2023
2/21/2023
11/1/2022 to 12/31/2022
251,945.01
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
12/19/2022
11/16/2022
9/1/2022 to 10/31/2022
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 8/26/2022 9924 9/28/2022 9935 11
007055774 9/28/2022 9935 10/27/2022 9944 9

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 152.60
TOTAL CURRENT CHARGES 603.88
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit: https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 252,051.83
Thank you for your payment. -672.55
Adjustments 0.00
Additional Billing 0.00
Current Charges 603.88
TOTAL AMOUNT DUE 251,983.16
0 100
200
300
400
500
600

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 12/19/2022

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000251983.16*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
11/16/2022
12/19/2022
9/1/2022 to 10/31/2022
251,983.16
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
10/15/2022
9/15/2022
7/1/2022 to 8/31/2022
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 6/28/2022 9895 7/27/2022 9909 14
007055774 7/27/2022 9909 8/26/2022 9924 15

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 221.27
TOTAL CURRENT CHARGES 672.55
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit:
https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 252,051.83
Thank you for your payment. -672.55
Adjustments 0.00
Additional Billing 0.00
Current Charges 672.55
TOTAL AMOUNT DUE 252,051.83
0 200
400
600
800
1000

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 10/15/2022

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000252051.83*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
9/15/2022
10/15/2022
7/1/2022 to 8/31/2022
252,051.83
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
8/19/2022
7/18/2022
5/1/2022 to 6/30/2022
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 5/25/2022 9891 6/28/2022 9895 4
007055774 4/27/2022 9866 5/25/2022 9891 25

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 221.27
TOTAL CURRENT CHARGES 672.55
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit:
https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 251,940.48
Thank you for your payment. -561.20
Adjustments 0.00
Additional Billing 0.00
Current Charges 672.55
TOTAL AMOUNT DUE 252,051.83
0 200
400
600
800
1000

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 8/19/2022

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000252051.83*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
7/18/2022
8/19/2022
5/1/2022 to 6/30/2022
252,051.83
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
6/20/2022
5/15/2022
3/1/2022 to 4/30/2022
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 2/24/2022 9850 3/28/2022 9860 10
007055774 3/28/2022 9860 4/27/2022 9866 6

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 109.92
TOTAL CURRENT CHARGES 561.20
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit:
https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 251,906.13
Thank you for your payment. -526.85
Adjustments 0.00
Additional Billing 0.00
Current Charges 561.20
TOTAL AMOUNT DUE 251,940.48
0 200
400
600
800
1000

JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 6/20/2022

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000251940.48*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
5/15/2022
6/20/2022
3/1/2022 to 4/30/2022
251,940.48
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
4/15/2022
3/16/2022
1/1/2022 to 2/28/2022
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 1/27/2022 9843 2/24/2022 9850 7
007055774 12/28/2021 9839 1/27/2022 9843 4

CURRENT CHARGES
Water Base Fee 1.5" Residential 451.28
Water Use 75.57
TOTAL CURRENT CHARGES 526.85
The City of St. Helena remains in Phase I water emergency.

For information regarding the Phase I regulations, please visit:
https://www.cityofsthelena.org/water-emergency.

To sign up for our Online Services or Autopay, please view the back of your statement for instructions. If you have any questions regarding your water bill please contact us at (707) 968-2745.

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 252,599.25
Thank you for your payment. -1,219.97
Adjustments 0.00
Additional Billing 0.00
Current Charges 526.85
TOTAL AMOUNT DUE 251,906.13
0 200
400
600
800
1000

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Water Use in HCF
Prior Usage Current Usage
TOTAL AMOUNT DUE BY 4/15/2022

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000251906.13*

AMOUNT DUE

AMOUNT ENCLOSED
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
3/16/2022
4/15/2022
1/1/2022 to 2/28/2022
251,906.13
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
2/21/2022
1/20/2022
11/1/2021 to 12/31/2021
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 11/29/2021 9829 12/28/2021 9839 10
007055774 10/27/2021 9818 11/29/2021 9829 11

CURRENT CHARGES
Water Base Fee 1.5" Residential 447.51
Water Use @ $6.87 145.64
Suspend June Pen 51,154.11
Suspend July Pen 61,020.95
TOTAL CURRENT CHARGES 112,768.21
If your bill includes penalties, please note the newly assessed penalty amount on your bill represents November penalties related water use over allocated amounts and the suspended 75% penalty for June and 50% penalty for July. Penalties were not assessed for the month of December. For additional
information please contact the St. Helena Finance Division at (707) 968-2745.

For information regarding the water emergency please visit:
https://www.cityofsthelena.org/wateremergency/page/water-em ergency

SPECIAL MESSAGE

BILL SUMMARY
Previous Balance 139,831.04
Payments Received 0.00
Adjustments 0.00
Additional Billing 112,175.06
Current Charges 593.15
TOTAL AMOUNT DUE 252,599.25
0 200
400
600
800
1000

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
Water Use in HCF
Prior Usage Current Usage

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000252599.25*

AMOUNT DUE

AMOUNT ENCLOSED

TOTAL AMOUNT DUE BY
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
1/20/2022
2/21/2022
11/1/2021 to 12/31/2021
2/21/2022 252,599.25
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
12/20/2021
11/19/2021
9/1/2021 to 10/31/2021
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 8/27/2021 9790 9/28/2021 9805 15
007055774 9/28/2021 9805 10/27/2021 9818 13

SPECIAL MESSAGE CURRENT CHARGES
If your bill includes penalties, please note that the newly assessed penalty amount on your bill represents
September and October penalties related water use over
allocated amounts. For additional information please contact the St. Helena Finance Division at (707) 968-2745.

For information regarding the water emergency please visit:
https://www.cityofsthelena.org/wateremergency/page/wateremergency Water Base Fee 1.5" Residential 418.50
Water Use @ $7.44 208.32
TOTAL CURRENT CHARGES 626.82

BILL SUMMARY
Previous Balance 152,053.43
Thank you for your payment. -6,563.94
Adjustments -6,285.27
Additional Billing 0.00
Current Charges 626.82
TOTAL AMOUNT DUE 139,831.04
0 200
400
600
800
1000

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV
Water Use in HCF
Prior Usage Current Usage

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT
*U0006087000139831.04*

AMOUNT DUE

AMOUNT ENCLOSED

TOTAL AMOUNT DUE BY
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
11/19/2021
12/20/2021
9/1/2021 to 10/31/2021
12/20/2021 139,831.04
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
10/25/2021
9/24/2021
7/1/2021 to 8/31/2021
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 6/28/2021 8964 7/28/2021 9499 535
007055774 7/28/2021 9499 8/27/2021 9790 291

SPECIAL MESSAGE CURRENT CHARGES
If your bill includes penalties, please note that the penalty amount on your bill represents 50% of your total July
Penalty and 100% of your August Penalty. The remaining
50% of your July penalty has been temporarily suspended and can be forgiven or become payable pursuant to the City Council's Penalty Forgiveness Program.

For additional information please contact the St. Helena Finance Division at (707) 968-2745. Information pertaining to the Penalty Forgiveness Program is available at
www.cityofsthelena.org/utility-billing.

Water Base Fee 1.5" Residential 418.50
Water Use @ $7.44 6,145.44
July 50% Excess Pen 65,003.40
Aug Excess Penalty 64,673.05
TOTAL CURRENT CHARGES 136,240.39

BILL SUMMARY
Previous Balance 23,223.24
Thank you for your payment. -3,982.26
Adjustments -3,427.94
Additional Billing 129,676.45
Current Charges 6,563.94
TOTAL AMOUNT DUE 152,053.43
0 200
400
600
800
1000

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Water Use in HCF
Prior Usage Current Usage

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT AUTO PAY *U0006087000152053.43*

AMOUNT DUE

AMOUNT ENCLOSED

TOTAL AMOUNT DUE BY
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
9/24/2021
10/25/2021
7/1/2021 to 8/31/2021
10/25/2021 152,053.43
Agenda Item #11.1.

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
Account
Statement

ACCOUNT INFORMATION
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

METER READING
(707) 968-2745
8/20/2021
7/15/2021
5/1/2021 to 6/30/2021
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Previous Reading Current Reading
Serial No Date Reading Date Reading Cons
007055774 4/29/2021 8485 5/26/2021 8639 154
007055774 5/26/2021 8639 6/28/2021 8964 325

SPECIAL MESSAGE CURRENT CHARGES
If your bill includes penalties, please note that the penalty amount on your bill represents 25% of your total June
Penalty. The remaining 75% of your penalty has been
temporarily suspended and can be forgiven or become
payable pursuant to the City Council's Penalty Forgiveness Program. For additional information please contact the St.

Helena Finance Division at (707) 968-2745. Information
pertaining to the Penalty Forgiveness Program is available at www.cityofsthelena.org/utility-billing.

Water Base Fee 1.5" Residential 418.50
Water Use @ $7.44 3,563.76
June Excess Penalty 19,240.98
TOTAL CURRENT CHARGES 23,223.24

BILL SUMMARY
Previous Balance 5,128.26
Thank you for your payment. -10,256.52
Adjustments 5,128.26
Additional Billing 19,240.98
Current Charges 3,982.26
TOTAL AMOUNT DUE 23,223.24
0 200
400
600
800
1000

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Water Use in HCF
Prior Usage Current Usage

PLEASE RETURN THIS PORTION ALONG WITH YOUR PAYMENT AUTO PAY *U000608700023223.24*

AMOUNT DUE

AMOUNT ENCLOSED

TOTAL AMOUNT DUE BY
REMIT PAYMENT TO:

Coupon
Payment

ACCOUNT INFORMATION
PLEASE MAKE CHECK PAYABLE TO:

ACCOUNT: 006087-000
SERVICE ADDRESS: 2600 Spring Mtn Rd
SERVICE PERIOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
3033 Excelsior Blvd. Ste. 525
Minneapolis, MN 55416
City of St. Helena
PO BOX 1290
Suisun City, CA 94585-1290
CITY OF ST. HELENA
7/15/2021
8/20/2021
5/1/2021 to 6/30/2021
8/20/2021 23,223.24
Agenda Item #11.1.

Utility Billing
Hoff Duane Susan 006087-000 - 2600 Spring Mtn Rd
User: AprilM
Printed: 3/19/2023 2:42:16 PM
Account Number Read Date Reading Consumption Reading Period/Year New Billed Estimated Order Ratchet Consumption 006087-000 3/1/2023 9973 8 03/2023 False True False 0 0.00000 006087-000 1/25/2023 9965 6 01/2023 False True False 0 0.00000 006087-000 12/28/2022 9959 9 12/2022 False True False 0 0.00000 006087-000 11/28/2022 9950 6 11/2022 False True False 0 0.00000 006087-000 10/27/2022 9944 9 10/2022 False True False 0 0.00000 006087-000 9/28/2022 9935 11 09/2022 False True False 0 0.00000 006087-000 8/26/2022 9924 15 08/2022 False True False 0 0.00000 006087-000 7/27/2022 9909 14 07/2022 False True False 0 0.00000 006087-000 6/28/2022 9895 4 06/2022 False True False 0 0.00000 006087-000 5/25/2022 9891 25 05/2022 False True False 0 0.00000 006087-000 4/27/2022 9866 6 04/2022 False True False 0 0.00000 006087-000 3/28/2022 9860 10 03/2022 False True False 0 0.00000 006087-000 2/24/2022 9850 7 02/2022 False True False 0 0.00000 006087-000 1/27/2022 9843 4 01/2022 False True False 0 0.00000 006087-000 12/28/2021 9839 10 12/2021 False True False 0 0.00000 006087-000 11/29/2021 9829 11 11/2021 False True False 0 0.00000 006087-000 10/27/2021 9818 13 10/2021 False True False 0 0.00000 006087-000 9/28/2021 9805 15 09/2021 False True False 0 0.00000 006087-000 8/27/2021 9790 291 08/2021 False True False 0 0.00000 006087-000 7/28/2021 9499 535 07/2021 False True False 0 0.00000 006087-000 6/28/2021 8964 325 06/2021 False True False 0 0.00000 006087-000 5/26/2021 8639 154 05/2021 False True False 0 0.00000 006087-000 4/29/2021 8485 571 04/2021 False True False 0 0.00000 006087-000 3/29/2021 7914 133 03/2021 False True False 0 0.00000 006087-000 3/9/2021 7781 300 03/2021 False True False 0 0.00000 006087-000 1/29/2021 7481 98 01/2021 False True False 0 0.00000 006087-000 12/30/2020 7383 127 12/2020 False True False 0 0.00000 006087-000 11/19/2020 7256 119 11/2020 False True False 0 0.00000 006087-000 10/30/2020 7137 991 10/2020 False True False 0 0.00000 006087-000 8/27/2020 6146 478 08/2020 False True False 0 0.00000 006087-000 7/30/2020 5668 75 07/2020 False True False 0 0.00000 006087-000 6/30/2020 5593 69 06/2020 False True False 0 0.00000 006087-000 6/1/2020 5524 57 05/2020 False True False 0 0.00000 Utility Billing - Hoff Duane Susan 006087-000 - 2600 Spring Mtn Rd (3/19/2023) Page 1 of 5

Agenda Item #11.1.

Account Number Read Date Reading Consumption Reading Period/Year New Billed Estimated Order Ratchet Consumption 006087-000 4/30/2020 5467 47 04/2020 False True False 0 0.00000 006087-000 4/1/2020 5420 53 04/2020 False True False 0 0.00000 006087-000 2/28/2020 5367 40 02/2020 False True False 0 0.00000 006087-000 1/31/2020 5327 33 01/2020 False True False 0 0.00000 006087-000 12/31/2019 5294 30 12/2019 False True False 0 0.00000 006087-000 12/9/2019 5264 57 12/2019 False True False 0 0.00000 006087-000 11/7/2019 5207 118 11/2019 False True False 0 0.00000 006087-000 10/8/2019 5089 107 10/2019 False True False 0 0.00000 006087-000 9/6/2019 4982 199 09/2019 False True False 0 0.00000 006087-000 8/8/2019 4783 86 08/2019 False True False 0 0.00000 006087-000 7/8/2019 4697 151 07/2019 False True False 0 0.00000 006087-000 6/7/2019 4546 75 06/2019 False True False 0 0.00000 006087-000 5/10/2019 4471 156 05/2019 False True False 0 0.00000 006087-000 4/8/2019 4315 38 04/2019 False True False 0 0.00000 006087-000 3/8/2019 4277 29 03/2019 False True False 0 0.00000 006087-000 2/7/2019 4248 29 02/2019 False True False 0 0.00000 006087-000 1/8/2019 4219 28 01/2019 False True False 0 0.00000 006087-000 12/7/2018 4191 54 12/2018 False True False 0 0.00000 006087-000 11/7/2018 4137 0 11/2018 False True False 0 0.00000 006087-000 11/5/2018 4137 11 11/2018 False True False 0 0.00000 006087-000 10/29/2018 4126 63 10/2018 False True False 0 0.00000 006087-000 10/8/2018 4063 80 10/2018 False True False 0 0.00000 006087-000 9/7/2018 3983 53 09/2018 False True False 0 0.00000 006087-000 8/8/2018 3930 38 08/2018 False True False 0 0.00000 006087-000 7/9/2018 3892 38 07/2018 False True False 0 0.00000 006087-000 6/7/2018 3854 24 06/2018 False True False 0 0.00000 006087-000 5/8/2018 3830 21 05/2018 False True False 0 0.00000 006087-000 4/9/2018 3809 29 04/2018 False True False 0 0.00000 006087-000 3/8/2018 3780 22 03/2018 False True False 0 0.00000 006087-000 2/8/2018 3758 33 02/2018 False True False 0 0.00000 006087-000 1/8/2018 3725 78 01/2018 False True False 0 0.00000 006087-000 12/8/2017 3647 46 12/2017 False True False 0 0.00000 006087-000 11/8/2017 3601 126 11/2017 False True False 0 0.00000 006087-000 9/8/2017 3475 566 09/2017 False True False 0 0.00000 006087-000 8/8/2017 2909 829 08/2017 False True False 0 0.00000 006087-000 7/7/2017 2080 733 07/2017 False True False 0 0.00000 006087-000 6/8/2017 1347 549 06/2017 False True False 0 0.00000 006087-000 5/8/2017 798 233 05/2017 False True False 0 0.00000 006087-000 4/7/2017 565 201 04/2017 False True False 0 0.00000 006087-000 3/8/2017 364 61 03/2017 False True False 0 0.00000 006087-000 2/8/2017 303 82 02/2017 False True False 0 0.00000 006087-000 1/10/2017 221 2 01/2017 False True False 0 0.00000 006087-000 12/9/2016 219 43 12/2016 False True False 0 0.00000 Utility Billing - Hoff Duane Susan 006087-000 - 2600 Spring Mtn Rd (3/19/2023) Page 2 of 5

Agenda Item #11.1.

Account Number Read Date Reading Consumption Reading Period/Year New Billed Estimated Order Ratchet Consumption 006087-000 11/8/2016 176 111 11/2016 False True False 0 0.00000 006087-000 10/7/2016 65 36 10/2016 False True False 0 0.00000 006087-000 9/8/2016 29 0 09/2016 False True False 0 0.00000 006087-000 8/8/2016 29 4 08/2016 False True False 0 0.00000 006087-000 7/8/2016 25 0 07/2016 False True False 0 0.00000 006087-000 6/8/2016 25 0 06/2016 False True False 0 0.00000 006087-000 5/9/2016 25 0 05/2016 False True False 0 0.00000 006087-000 4/8/2016 25 0 04/2016 False True False 0 0.00000 006087-000 3/8/2016 25 0 03/2016 False True False 0 0.00000 006087-000 2/8/2016 25 0 02/2016 False True False 0 0.00000 006087-000 1/8/2016 25 0 01/2016 False True False 0 0.00000 006087-000 12/8/2015 25 0 12/2015 False True False 0 0.00000 006087-000 11/9/2015 25 0 11/2015 False True False 0 0.00000 006087-000 10/8/2015 25 0 10/2015 False True False 0 0.00000 006087-000 9/8/2015 25 0 09/2015 False True False 0 0.00000 006087-000 8/7/2015 25 0 08/2015 False True False 0 0.00000 006087-000 7/8/2015 25 0 07/2015 False True False 0 0.00000 006087-000 6/8/2015 25 0 06/2015 False True False 0 0.00000 006087-000 5/8/2015 25 0 05/2015 False True False 0 0.00000 006087-000 4/9/2015 25 0 04/2015 False True False 0 0.00000 006087-000 3/9/2015 25 0 03/2015 False True False 0 0.00000 006087-000 2/9/2015 25 0 02/2015 False True False 0 0.00000 006087-000 1/8/2015 25 0 01/2015 False True False 0 0.00000 006087-000 12/8/2014 25 0 12/2014 False True False 0 0.00000 006087-000 11/7/2014 25 0 11/2014 False True False 0 0.00000 006087-000 10/8/2014 25 0 10/2014 False True False 0 0.00000 006087-000 9/8/2014 25 0 09/2014 False True False 0 0.00000 006087-000 8/8/2014 25 0 08/2014 False True False 0 0.00000 006087-000 7/8/2014 25 0 07/2014 False True False 0 0.00000 006087-000 6/9/2014 25 0 06/2014 False True False 0 0.00000 006087-000 5/8/2014 25 1 05/2014 False True False 0 0.00000 006087-000 4/7/2014 24 0 04/2014 False True False 0 0.00000 006087-000 3/7/2014 24 0 03/2014 False True False 0 0.00000 006087-000 2/21/2014 24 0 02/2014 False True False 0 0.00000 006087-000 2/7/2014 24 0 02/2014 False True False 0 0.00000 006087-000 1/9/2014 24 0 01/2014 False True False 0 0.00000 006087-000 12/9/2013 24 0 12/2013 False True False 0 0.00000 006087-000 11/8/2013 24 0 11/2013 False True False 0 0.00000 006087-000 10/8/2013 24 0 10/2013 False True False 0 0.00000 006087-000 9/9/2013 24 0 09/2013 False True False 0 0.00000 006087-000 8/8/2013 24 0 08/2013 False True False 0 0.00000 006087-000 7/8/2013 24 0 07/2013 False True False 0 0.00000 006087-000 6/7/2013 24 0 06/2013 False True False 0 0.00000 Utility Billing - Hoff Duane Susan 006087-000 - 2600 Spring Mtn Rd (3/19/2023) Page 3 of 5

Agenda Item #11.1.

Account Number Read Date Reading Consumption Reading Period/Year New Billed Estimated Order Ratchet Consumption 006087-000 5/8/2013 24 0 05/2013 False True False 0 0.00000 006087-000 4/8/2013 24 0 04/2013 False True False 0 0.00000 006087-000 3/8/2013 24 0 03/2013 False True False 0 0.00000 006087-000 2/8/2013 24 0 02/2013 False True False 0 0.00000 006087-000 1/8/2013 24 0 01/2013 False True False 0 0.00000 006087-000 12/7/2012 24 0 12/2012 False True False 0 0.00000 006087-000 11/8/2012 24 0 11/2012 False True False 0 0.00000 006087-000 10/8/2012 24 0 10/2012 False True False 0 0.00000 006087-000 9/7/2012 24 0 09/2012 False True False 0 0.00000 006087-000 8/8/2012 24 0 08/2012 False True False 0 0.00000 006087-000 7/9/2012 24 0 07/2012 False True False 0 0.00000 006087-000 6/8/2012 24 0 06/2012 False True False 0 0.00000 006087-000 5/8/2012 24 0 05/2012 False True False 0 0.00000 006087-000 4/9/2012 24 0 04/2012 False True False 0 0.00000 006087-000 3/8/2012 24 0 03/2012 False True False 0 0.00000 006087-000 2/8/2012 24 0 02/2012 False True False 0 0.00000 006087-000 1/9/2012 24 0 01/2012 False True False 0 0.00000 006087-000 12/8/2011 24 1 12/2011 False True False 0 0.00000 006087-000 11/8/2011 23 4 11/2011 False True False 0 0.00000 006087-000 10/7/2011 19 14 10/2011 False True False 0 0.00000 006087-000 9/8/2011 5 0 09/2011 False True False 0 0.00000 006087-000 8/8/2011 5 0 08/2011 False True False 0 0.00000 006087-000 7/7/2011 5 0 07/2011 False True False 0 0.00000 006087-000 6/8/2011 5 0 06/2011 False True False 0 0.00000 006087-000 5/6/2011 5 0 05/2011 False True False 0 0.00000 006087-000 4/7/2011 5 0 04/2011 False True False 0 0.00000 006087-000 3/8/2011 5 0 03/2011 False True False 0 0.00000 006087-000 2/8/2011 5 0 02/2011 False True False 0 0.00000 006087-000 1/7/2011 5 0 01/2011 False True False 0 0.00000 006087-000 12/8/2010 5 0 12/2010 False True False 0 0.00000 006087-000 11/8/2010 5 0 11/2010 False True False 0 0.00000 006087-000 10/8/2010 5 0 10/2010 False True False 0 0.00000 006087-000 9/9/2010 5 0 09/2010 False True False 0 0.00000 006087-000 8/9/2010 5 0 08/2010 False True False 0 0.00000 006087-000 7/8/2010 5 0 07/2010 False True False 0 0.00000 006087-000 6/8/2010 5 0 06/2010 False True False 0 0.00000 006087-000 5/10/2010 5 0 05/2010 False True False 0 0.00000 006087-000 4/8/2010 5 0 04/2010 False True False 0 0.00000 006087-000 3/8/2010 5 0 03/2010 False True False 0 0.00000 006087-000 2/5/2010 5 0 02/2010 False True False 0 0.00000 006087-000 1/7/2010 5 0 01/2010 False True False 0 0.00000 006087-000 12/8/2009 5 0 12/2009 False True False 0 0.00000 006087-000 11/9/2009 5 0 11/2009 False True False 0 0.00000 Utility Billing - Hoff Duane Susan 006087-000 - 2600 Spring Mtn Rd (3/19/2023) Page 4 of 5

Agenda Item #11.1.

Account Number Read Date Reading Consumption Reading Period/Year New Billed Estimated Order Ratchet Consumption 006087-000 10/8/2009 5 0 10/2009 False True False 0 0.00000 006087-000 9/10/2009 5 0 09/2009 False True False 0 0.00000 006087-000 8/11/2009 5 0 08/2009 False True False 0 0.00000 006087-000 6/8/2009 5 5 06/2009 False True False 0 0.00000 006087-000 5/7/2009 0 0 05/2009 False True False 0 0.00000 006087-000 4/7/2009 0 0 04/2009 False True False 0 0.00000 006087-000 3/9/2009 0 0 03/2009 False True False 0 0.00000 006087-000 2/9/2009 0 0 02/2009 False True False 0 0.00000 006087-000 12/9/2008 0 0 12/2008 False True False 0 0.00000 006087-000 10/6/2008 0 0 10/2008 False True False 0 0.00000 006087-000 2/11/2008 0 89 02/2008 False True False 0 0.00000 006087-000 8/13/2004 0 0 08/2004 False True False 0 0.00000 Utility Billing - Hoff Duane Susan 006087-000 - 2600 Spring Mtn Rd (3/19/2023) Page 5 of 5

Agenda Item #11.1.

From: April Mitts
To: April Mitts
Subject: 2600 Spring Mountain
Date: Sunday, March 19, 2023 2:24:31 PM
Attachments: image001.png
From: Mandy Kellogg <[email protected]>
Sent: Tuesday, January 24, 2023 8:09 PM
To: April Mitts <[email protected]>; Cindy Tzafopoulos <[email protected]> Cc: Joseph Leach <[email protected]>
Subject: 2600 Spring Mountain
Found this letter in PW files:

Thanks,
Mandy Kellogg
Administrative Services Director
City of St. Helena
1572 Railroad Avenue St. Helena, CA 94574
(707) 968-2649 office | (707) 312-1260 mobile | (707) 963-7966 fax Agenda Item #11.1.

Agenda Item #11.1.

CITY OF ST. HELENA
RESOLUTION NO. 2023-
Resolution of the City Council of the City of St. Helena Making Findings and Determinations Regarding the
Water Penalty Appeal of Duane and Susan Hoff
WHEREAS, On October 27, 2020, the City Council established Phase II Water Regulations and, in accordance with the St. Helena Municipal Code (SHMC), established the Water Advisory Board; and
WHEREAS, In June 2021, the City began charging penalties for water use which exceeded allocations as determined by the SHMC; and
WHEREAS, the City recognized that during a Phase II or Phase III water emergency, penalties may have been incurred as a result of a leak. On July 27, 2021, the City Council adopted a resolution designating that the Water Advisory Board can hear/make a determination for reduction of penalties for those customers who receive a penalty as a result of a water leak; and
WHEREAS, Duane and Susan Hoff have filed a request for fee waiver for the penalties incurred on their water account in June, July, and August 2021 totaling $251,379.28. The penalties imposed were not the result of a leak; therefore, the request for fee waiver does not fall under the authority of the Water Advisory Board (WAB) and the amount exceeds the authority granted to the City Manager; therefore, it is being presented to the City Council for consideration; and WHEREAS, the City Council has reviewed the penalty appeal for Duane and Susan Hoff and has made the determination as noted below.

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. HELENA AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council has considered the circumstances of the appeal.

SECTION 3. The City Council has determined to deny the appeal in its entirety.

Approved at a Regular Meeting of the St. Helena City Council on May 9, 2023, by the following vote:

Agenda Item #11.1.

Mayor Paul Dohring: _____
Vice Mayor Eric Hall: _____
Council Member Anna Chouteau: _____
Council Member Lester Hardy: _____
Council Member Billy Summers: _____
APPROVED: ATTEST:
______________________ ________________________
Paul Jaminson Dohring, Mayor Cindy Tzafopoulos, City Clerk Agenda Item #11.1.

Updated 06/04/2021
Water Exception Permit Form

PROPERTY & BILLING INFORMATION
Date Applying Customer or Company Name
Account Number Phone Number Email Address
Mailing Address City State Zip Code
TYPE OF EXCEPTION REQUEST – CHECK ALL THAT APPLY
Allocation based on previous water use - it can be demonstrated that water conservation measures beyond those required in Chapter 13.12 were in place prior to the preceding nonshortage year. An additional quantity of water may be allocated to recognize the higher efficiency in place prior to the water emergency condition.

Allocation based on previous water use – it can be demonstrated that efficient and essential water uses are not represented in average water use.

Irrigation – Non-residential customers with irrigation and domestic use provided by the same water meter may receive an additional landscape allocation of up to 70 gallons (Phase II) per day per 1,000 square feet of landscaped area during April through October by documenting the landscaped square footage served by city water.

Single-family residential - parcels exceeding seven thousand (7,000) square feet in area, the quantity of up to twenty (20) gallons per day for each one thousand (1,000) square feet that the property area exceeds seven thousand (7,000) square feet for the purpose of maintaining mature landscape or orchard plants.

For medical conditions of a resident, a quantity as required to maintain health standards.

Additional Amount Requested (if known): Check One: ____ HCF -or- _____ Gallons Additional supporting information/considerations (please attach any additional supporting documentation):

DATE SUBMITTED:

RECEIVED BY:

Agenda Item #11.1.

PLEASE READ A~D SIGN THE FOLLOWING STATEMENTS AS ACKNOWLEDGED

AND REQU IRED BY THIS AGREEMENT
If this condition is granted, I agree to:

Submit a request in writing to the Director of Public Works; Adhere to all specific requirements contained within the exception; and Any other specified conditions as determined by the City of St Helena or Water Advisory Board By signing below, applicant acknowledges and consents to the Water Advisory Board's review and use of applicant's customer records for the purpose of malting a decision related to the permit application, and nderstands that such information, including historical water use, may be discussed and disclosed at a public meeting City of St. Helena: Public Works
1572 Railroad Avenue
St. Helena, CA 94574
Water use exception is hereby: pproved
Website: www.cityofstheleua.org/Phaseii
Phone: 707-968-2746

STAFF USE ONLY
enied
Details of exception granted, including additional allocation:

If denied, reason for denial:

Approved by (check one): Public Works Director Water Advisory Board Updated 06/04/2021
Agenda Item #11.1.

TO THE ST. HELENA CITY COUNCIL:

My wife and I have lived in St. Helena full time since 2007. Both of my kids graduated from St.

Helena High. Our family sponsors scholarships for 2 high school kids each year that follow them throughout 4 years of college. I chaired the bond initiative to build the career technical and agricultural buildings at the high school and to replace the 40-year-old temporary buildings of the middle school. I’ve bought more Future Farmers of America Auction pigs, goats, sheep, and turkeys than you can fit in a dozen freezers.

St. Helena is our home. But our home is also inextricably linked to our vineyard, our winery, and our business, Fantesca.

The drought during 2021 caused our well to start throwing a lot of sand, which clogged the filters and despite cleaning 3 times a day, caused the irrigation tanks to critically fall behind in watering the vineyard. While we now understand that a notice of the fine system had been sent to our office in Minnesota, word of that didn’t reach us until the June water invoice was received in early August. In the meantime, we faced a critical need to water the vineyard or lose the crop. We chose to save the crop.

The previous year, when the 2020 fires started burning our property, my son, son in law, and myself decided to stay and do anything we could to save Fantesca. While fighting the fire on our property, we noticed the fire had jumped to the tree line shared between our neighbor’s property and ours. We called to report the spreading fire and St. Helena and Cal Fire responded and saved our neighbor’s house. When this water crisis emerged, that neighbor allowed us to run pipe from his well to our tanks in appreciation of our efforts, but it took several weeks to get that work scheduled and completed. In that time, we continued to use city water to sustain the crop.

By the end of August, we were compliant with the watering restrictions in place.

Our intention in telling you these events is to make 3 things clear. 1) We are not some faceless company, we are members of this community 2) We didn’t use this water out of vanity for a rose garden, we made a decision to save a crop.
3) We quickly sought out an alternative source of water and implemented a solution to reduce our use.

The city council’s stated intent in adopting the penalty program wasn’t to punish citizens but to modify behavior. We modified our behavior and have been in compliance for 19 consecutive months since becoming aware of the limits. I hope the council will take a common sense approach to the timeline, how quickly we acted, and what our motivations and intent were.

Thank you,

DUANE AND SUSAN HOFF
Agenda Item #11.1.

CITY OF ST. HELENA
RESOLUTION NO. 2023-
Resolution of the City Council of the City of St. Helena Making Findings and Determinations Regarding the
Water Penalty Appeal of Duane and Susan Hoff
WHEREAS, On October 27, 2020, the City Council established Phase II Water Regulations and, in accordance with the St. Helena Municipal Code (SHMC), established the Water Advisory Board; and
WHEREAS, In June 2021, the City began charging penalties for water use which exceeded allocations as determined by the SHMC; and
WHEREAS, the City recognized that during a Phase II or Phase III water emergency, penalties may have been incurred as a result of a leak. On July 27, 2021, the City Council adopted a resolution designating that the Water Advisory Board can hear/make a determination for reduction of penalties for those customers who receive a penalty as a result of a water leak; and
WHEREAS, Duane and Susan Hoff have filed a request for fee waiver for the penalties incurred on their water account in June, July, and August 2021 totaling $251,379.28. The penalties imposed were not the result of a leak; therefore, the request for fee waiver does not fall under the authority of the Water Advisory Board (WAB) and the amount exceeds the authority granted to the City Manager; therefore, it is being presented to the City Council for consideration; and WHEREAS, the City Council has reviewed the penalty appeal for Duane and Susan Hoff and has made the determination as noted below.

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. HELENA AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council has considered the circumstances of the appeal.

SECTION 3. The City Council has determined the following:
_____ Deny the appeal in its entirety
_____ Approve the appeal in its entirety for an amount of $251,379.28 Agenda Item #11.1.

_____ Grant a portion of the appeal for an amount of $__________ Approved at a Regular Meeting of the St. Helena City Council on May 9, 2023, by the following vote:

Mayor Paul Dohring: _____
Vice Mayor Eric Hall: _____
Council Member Anna Chouteau: _____
Council Member Lester Hardy: _____
Council Member Billy Summers: _____
APPROVED: ATTEST:
______________________ ________________________
Paul Jaminson Dohring, Mayor Cindy Tzafopoulos, City Clerk Agenda Item #11.1.

May 5, 2023
By Electronic Mail
Mayor Paul Dohring
Members of the St. Helena City Council
City of St. Helena
1088 College Avenue
St. Helena, CA 94574
Re: Duane and Susan Hoff Water Penalties
2600 Spring Mountain Road
Dear Mayor Dohring and Councilmembers:

I am writing on behalf of Duane and Susan Hoff to request relief from $250,000 in penalties which the City imposed on them for excessive water use in August 2021.

I

BACKGROUND
In 2004, the Hoffs purchased a 53-acre parcel at 2920 Spring Mountain Road and founded Fantesca Winery. They have lived in St. Helena permanently since 2007 and are active members of the community. Their children graduated from St. Helena High School. They sponsor two four-year college scholarships for St. Helena High students. Duane is active in Future Farmers of America and chaired the bond initiative to build and replace buildings at the high school and middle school.

During the 2021 drought, the well that serves the Hoffs’ 10-acre vineyard failed. Despite a concerted effort to prolong its life, the well could no longer irrigate the vineyard. Immediate action was needed to save the crop. The Hoffs therefore used City water to irrigate the vineyard in June, July and August 2021, far exceeding their allotment under the City’s Phase II water regulations. The Hoffs made that decision under duress since the only alternative was to lose the entire harvest.

At the time, the Hoffs were only vaguely aware of their Phase II water allotment and the penalties for exceeding it. Although the City mailed notice of the program to the Hoffs in May 2021, the Hoffs did not become aware of it until they received an e-mailed copy of the notice on August 19. The notice attached to the City’s e-mail (Exhibit D) was directed to an outdated BLOCK~BLOCK

ATTORNEYS
1109 JEFFERSON STREET, NAPA, CA 94559 • 707.251.9871 • BLOCKANDBLOCKLLP.COM • [email protected] Agenda Item #11.1.

St. Helena City Council
May 5, 2023
Page Two
address.
1 If the City mailed notice in May 2021 to the Hoffs’ old address, as the letter indicates, it violated the Water Department’s own notice requirements. 2 In July 2021, after hearing a report on the onerous penalties payable for the previous month, the City Council enacted a penalty forgiveness program. The program, adopted on July 27, provided that penalties would be forgiven if a customer stayed within his or her water allotment in August, September, October and November 2021. Compliance in all four months was required to qualify for penalty relief.

The Hoffs first learned that they were being penalized in their June water bill, which was sent in July and received in Minneapolis on August 3 (Exhibit A). The bill noted the existence of a penalty forgiveness program and advised customers to contact the City for details. On August 4, the Hoffs began reaching out to the City to learn how to obtain penalty relief. They tried to make contact on August 4, 9 and 16 but received no response (Exhibit B).

The Hoffs never received notice of the June penalty other than the fine print in their June water bill. By letter dated August 11, received on or about August 23, the Hoffs were notified that they were being penalized for excessive water use in July (Exhibit D). That letter advised them, for the first time, that their penalties would be forgiven if they conformed to their water allotment for four consecutive months beginning in August.

Note the irony. In order to qualify for relief under a program adopted July 27, the Hoffs had to begin curtailing their water use four days later. They were advised again the letter they received on August 23 that they qualified for penalty relief only if they complied with their water allotment in August. Compliance was impossible by then. In fact, it was already too late when the Hoffs received their June water bill on August 3 because of the time required to connect their vineyard to a neighbor’s well, as described below.

On August 19, the City finally responded to the inquiries about penalty forgiveness initiated by the Hoffs on August 4 (Exhibit C). The Finance Department informed them that penalties would be forgiven if they stayed within their water allotment beginning in August. Again, note the irony. The Hoffs were informed in late August that, to have their penalties forgiven, they 1 Accounting and other administrative support functions for the winery are centralized in Minneapolis, Minnesota, where a family office known as Olympus Ventures serves various businesses in which the Hoffs have an interest. In 2019, Olympus notified the City that it had changed addresses from 3033 Excelsior Boulevard to 6600 France Avenue South, after which it began to receive water bills at the new address. For reasons which are unclear, the City continued to mail other communications to Excelsior Boulevard. In February 2023, the City contacted Olympus to verify the correct mailing address but, astoundingly, still had the old address on file (Exhibit I). 2 “Notices from the city to any consumer will be given in writing, either delivered to the consumer or mailed or emailed to his or her last known address or contact, except that where conditions warrant or in any emergency the city may give verbal notice by telephone or in person” (SHMC § 13.04.120(A)).

Agenda Item #11.1.

St. Helena City Council
May 5, 2023
Page Three
needed to drastically reduce their water use beginning that same month. From the very beginning, the penalty forgiveness program was effectively closed to them.

II

GAPS IN THE STAFF REPORT
The staff report paints an incomplete and misleading picture of events. We know, for example, that the Hoffs notified the City of their change of address because, by July 2021, the City was sending water bills to their new address (Exhibit A). The August 2021 penalty notice also contains the new address (Exhibit E). Yet the same penalty notice and the water bills appended to the staff report (pages 1308 and 1322-1332 of the agenda packet, respectively) show the old address, which the City says it did not correct until this past February (page 1321 of the agenda packet).

It is incumbent on the City to explain why it had two addresses in its system and why it continued to use both of them. Specifically, why did penalty forgiveness notices continue to be sent to the old address long after the City had the new one? The confusion over addresses created by the City supports the Hoffs’ claim that they did not receive timely notice of the penalty forgiveness program. The staff report is silent on this issue.

We also know that the Hoffs first learned of the penalty forgiveness program from their June water bill (Exhibit A), which they received on August 3. The next day, August 4, the Hoffs began asking the City how to qualify for penalty forgiveness (Exhibit B) but the City did not respond until August 19 (Exhibit C), by which time it was too late.

The staff report does not provide the Council with the August e-mail exchange, which supports the Hoffs’ claim that they were excluded from the penalty forgiveness program from the start.

Staff also fails to provide Council with the Hoffs’ August 24 e-mail to the City which further corroborates their version of event. The staff report glosses over these important facts.

These omissions create a false impression that goes to the heart of this case. The material supplied by staff suggests that the City diligently tried to communicate with the Hoffs but that the Hoffs did not respond. That is the opposite of what happened. It was the Hoffs who diligently tried to communicate with the City and the City who did not respond until it was too late.

III

GROUNDS FOR PENALTY RELIEF
A. Fundamental Fairness
The City should forgive the Hoffs water penalty as a matter of fundamental fairness. The Hoffs never had an opportunity to qualify for relief because they were informed of the penalty forgiveness program too late to reduce their water use in August.

Agenda Item #11.1.

St. Helena City Council
May 5, 2023
Page Four
A fair penalty forgiveness program must give everyone who is eligible an opportunity to qualify.

The City Council made clear in adopting the program that its purpose was not to punish people but to get them to change their behavior. The program serves no purpose if otherwise eligible participants are disqualified from the start.

Depriving participants of a chance to qualify for penalty relief raises serious due process questions. Under the state and federal constitutions, notice “is required before property interests are disturbed, before assessments are made, before penalties are assessed. Notice is required in a myriad of situations where a penalty or forfeiture might be suffered for mere failure to act.” (Lambert v. People of the State of California (1957) 355 U.S. 225, 228.) The City’s untimely notice to the Hoffs is tantamount to no notice at all.

B. Improper Grounds
There is another legal infirmity in the way penalties were imposed. Staff has clearly stated that the Hoffs’ penalties were based not only on excessive water use but on their unauthorized use of water for a non-residential purpose (Exhibit G).

The Hoffs did not know that City water on their property was limited to residential use, and their confusion is understandable. In November 2021, the City approved an increase in the Hoffs’ water allotment based on the Fantesca tasting room, a non-residential use, after encouraging the Hoffs to apply for an exception permit (Exhibit J, Exhibit K). Later, staff compounded the confusion by responding to the Hoffs’ question about the residential use restriction by citing a Municipal Code provision which says nothing of the sort (Exhibit H).

A punitive statute or ordinance must clearly apprise interested parties of what conduct is prohibited. A penalty may not be imposed for conduct which is not identified in the statute as grounds for punishment. (See People v. Jefferson (2016) 248 Cal.App.4th 660, 663.) This is a fundamental tenet of our legal system.

In this case, the City imposed penalties on the Hoffs, at least in part, based on their non-residential use of water. Yet the City repeatedly refers to its penalty program as “volumetric,” i.e., based on the amount of water used, not the nature of the use. Nowhere does the program identify non-residential water use as grounds for imposing a penalty. The Hoff penalties are therefore tainted, and legally invalid, because they were imposed on an improper basis.

C. Remedial Purpose
Imposing penalties on the Hoffs is inconsistent with the purpose of the penalty forgiveness program, which was intended to be remedial not punitive. The penalties are part of a behavior modification program, which in this case clearly worked. As soon as the Hoffs learned that they needed to reduce their water use to qualify for penalty relief, they took immediate and successful steps to do so.

Agenda Item #11.1.

St. Helena City Council
May 5, 2023
Page Five
Specifically, the Hoffs reached agreement with a neighbor to tap into the neighbor’s well. The neighbor agreed out of gratitude for the Hoffs’ help in saving his house from the 2020 fires. It took several weeks, however, to lay the pipe and complete the connection before the well could serve the Hoff vineyard.

Once that connection was established, the Hoffs stayed within their water allotment for the rest of the forgiveness period and up to the present. Here are the figures:

Month Allotment Usage
June 22,220 243,100
July 19,900 400,229
August 19,900 217,682
September 17,980 11,220
October 16,820 9,724
November 19,720 8,228
The penalty forgiveness program got the Hoffs to reduce their water use quickly, drastically and permanently. It achieved its purpose. Leaving these onerous penalties in place would serve no purpose except to punish Duane and Susan, who acted in good faith and continue to make a major contribution to the community.

Punishment is always inappropriate where, as here, it is unnecessary and clearly directed at the wrong people. Its only consequence in such circumstances will be to create ill will and divide a community that prides itself on fairness and inclusion.

IV

CONCLUSION
The Hoffs did not use City water to irrigate their daisies. They watered grapevines to preserve their livelihood and save their crop. Perhaps, in hindsight, they should have approached their neighbor sooner about using his well but hindsight, as we all know, is 20:20. As soon as the Hoffs realized their dilemma, they acted swiftly, responsibly and successfully to reduce their water use.

We ask Members of the Council to treat Duane and Susan Hoff as Members would want to be treated on similar facts. The Hoffs deserve penalty relief.

Sincerely,
Kevin P. Block
~>
Agenda Item #11.1.

EXHIBIT A
Agenda Item #11.1.

1572 Railroad Avenue
St. Helena, CA 94574
water@cityof'sthelena.org
(707) 968-2745
Account
ACCOUNT:

SERVICE ADDRESS:

SERVICE PERIOD:
11 l'/' (I ? , BILLING DATE:
202,
008087-000
2600 Spring Min Rd
5/1/2021 to 6/30/2021
7/15/2021
45'2' 1 ......... .... MIXED AADC 970
I, •I 11II •,II,,• I I•,, 11 1 •"I•, 11111h•11111 I' 111 1! 1 I• 11,. hll1ul I

DUANE & SUSAN HOFF
6600 FRANCE AVE S STE 550
MINNEAPOLIS, MN 55435-1810
If your bill includss penalties, please note that the penalty emou~t on you_r bill represe_("!tl; 25.% of yo1;1r total June Penalty. The remaining 75% of your penalty hes bean
temporarily suspended and can be forgiven or become
payable pursuant to the Ctty Council's Penalty Forgiveness Program. For additional information please contact the St.

Helene Finance Division el (707) 988-2745. Information
pertaining to the Penalty Forgiveness Program le avallable at www.cilyofsthelena.org/uUllty-bllllng.
400
?OU
Payment
Coupon
FEB IWI AP!\ WAY .IJH JUL
~ffllntUNge

PLBASE RETIJRN TJUS PORTION ALONG WITH YOUR PAYMENT
PLBASE MA.KB CHECK PAYABLE TO:

CITY OF ST. HELENA
ACCOUNT:

SERVICE ADDRESS:

SERVICE PERJOD:

BILLING DATE:

DUE DATE:

DUANE & SUSAN HOFF
6600 FRANCE AVE S STE 550
MINNEAPOLIS, MN 55435-1810
006087~00
2600 Spring Min Rd
5/1/2021 to 6/30/2021
7/15/2021
8120/2021
DUE DATE:

Serial No
007055774
007055774
Previous RNdlng CurNnt Reading
Ollt8 Reading Oabl Reading
4129/2021 8485 5128/2021 8639
5128/2021 8639 8/28/2021 8964
Water Base Fee 1.5~ Resldential
1/(a~~ Use @ $.?_.44 ..

June Excess Penalty

TOTAL CURRENT CHARGES
Prsvlous Balance
Thank you for your payment.

Adjustments
Additional Bllllng
CurTBnt Cherg89
8120/2021
Cons
154
325
418.50
3,563.76
19,240.98
23,223.24
6,128.28
-10,258.52
6,128.28
19,240.98
3,982.28
TOTAL AMOUNT DUE 23,223.24

TOTAL AMOUNT DUE BY
City of St. Helena
PO BOX 1290
8/20/2021
Suisun City, CA 94685-1290
11111111111111111111111ml lllll 111111111111111111111111 1111 23,223.24
Agenda Item #11.1.

EXHIBIT B
Agenda Item #11.1.

From: Rita Penniston <[email protected]>
Sent: Monday, August 16, 2021 5:09 AM
To: Water <[email protected]>
Subject: FW: [External] City of St. Helena billing inquiry, 3rd request Please will you respond to our questions below?
From: Rita Penniston
Sent: Monday, August 9, 202110:01 AM
To: [email protected]
Subject: FW: City of St. Helena billing inquiry, 2nd request From: Rita Penniston
Sent: Wednesday, August 4, 2021 2:45 PM
To: [email protected]
Subject: FW: FW: City of St. Helena!
Hello,
Please will you provide us witi-1 some additional clarification about ti-le attached billing? My Accounting partner has listed three bullets below and from your answers we can better communicate with the Hoffs regarding the penalty.

Thanks very much!
Best Regards,
Rita
Rita Penniston I Staff Accountant
� Olympus Ventures LLC
6600 France Ave So, Suite 550, Minneapolis, MN 55435
OFFICE 952.324.8938 I , .. 952-324-8957
rlt;,[email protected]
CONFIDENTIALITY NOTICE: Information, material and/or documents contained in this message are privileged, confidential and/or proprietary in nature and are intended only for the use of the individual or entity named herein as recipient. If the reader of this message is not the intended recipient, you are hereby notified that dissemination, distribution or copy of this email is strictly prohibited. If you have received this email in error, please reply to the sender at the above email address by clicking your reply button. If you do not fully receive or cannot read or open any document, please contact the sender immediately. Thank you.

From: Bryan Rohde <[email protected]>
Sent: Wednesday, August 4, 2021 2:31 PM
To: Rita Penniston <[email protected]>; Jack Mcleod <jmc:[email protected]> Subject: FW: FW: City of St. Helena I
Hey Rita,
could you give the city a call and ask a few questions? I mainly want to understand:
• How's the penalty calculated and what's the threshold? • Are there any options for the penalty to be waived? i.e. we were not aware that this would be assessed. • How long does the city plan to continue assessing these type of penalties? Thanks,
Bryan Rohde I Financial Accountant
� Olympus Ventures LLC
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 I MOBILE 507.858,5599
&QCZU .,,
,-.--.. tL«',•
Agenda Item #11.1.

EXHIBIT C
Agenda Item #11.1.

From: Water <[email protected]>
Sent: Thursday, August 19, 2021 3:39 PM
To: Rita Penniston <[email protected]>; Water <[email protected]> Subject: RE: [External] City of St. Helena billing inquiry, 3rd request Good Afternoon Rita,
I apologize for the delay in responding to your request. All residents were sent a letter at the end of May informing them of their allocation during Phase II of the drought emergency declared by the City. Their current allocation is based on 2 full time residents living at the property.

The only options to have the penalties reduced or waived are below:

1. if a leak occurred on the property, the customer can file an appeal for a leak adjustment and penalty waiver

2. if the property is over 7,000 square feet, the customer can file for an exception permit that allows additional allocation for outdoor irrigation.

3. If customer's stay within their allocation August through November, there penalties will be waived.

Since the penalties are based on the City being in a Phase II drought emergency, we cannot determine when will change.

Please let me know if you have any 4 uestions or need additional assistance.

Jenn Weeks
Finance Department
Senior Accounting Technician
City of St. Helena
1572 Railroad Ave.

St. Helena, CA 94574
Office: 707-968-2753 Cell: 707-312-1339 Fax: 707-963-7966 Agenda Item #11.1.

City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968Ͳ2745
May 21, 2021
Hoff Duane & Susan
3033 Excelsior Blvd. Ste. 525
Minneapolis MN, 55416
Account number: 006087-000 Service Address: 2600 Spring Mtn Rd Dear Hoff Duane & Susan,
Like many California communities, St. Helena is facing a water crisis. Lack of rain and use of water from Bell Canyon Reservoir to fight last year’s wildfires has contributed to this worsening emergency.

As we did last year during wildfire season and throughout COVID-19, we must pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase III.

Doing Your Part
x Starting today, and through the remainder of the water crisis, we are calling on customers to use water efficiently and keep their residential indoor water use below 65 gallons per person per day.
x During the summer period, residential customers must also limit outdoor irrigation to no more than 2,500 gallons per month. Known as an “allocation,” some residential customers prefer to think of the 2,500 gallons per month as a monthly water budget for discretionary outdoor watering.

Penalties for Inefficient Water Use, Effective June 1, 2021 In recognition of the dire situation, City Council recently adopted a penalty structure for customers who exceed their property’s monthly water allocation. These penalties are designed to minimize the impact on those bills that exceed the allocation by a little bit, while sending a strong message to unusually heavy water users.

Exceed Monthly Water
Allocation By
Penalty per Hundred Cubic
Feet (748 Gallons)
$ per Gallon
Exceeded
Less than 25%
(up to 24.999%) $10.00 $0.013
25-50% (25-49.999%) $25.00 $0.033
50-100% (50-99.999%) $100.00 $0.134
Greater than 100% $250.00 $0.334
For Perspective
As a point of comparison, below is the water consumption we recorded on your account in the same month in 2019 (due to COVID, 2020 use was not used).

June 2019 water use: 75.00 units, or 56108.00 gallons.

June 2021 Summer Monthly Allocation: 9.35 units, or 6995.00 gallons.

We’re in This Together!
The enclosed fact sheet provides more information and provides helpful tips on indoor and outdoor water conservation. Thank you for your work to help us get through this difficult time together as a community. As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Agenda Item #11.1.

EXHIBIT D
Agenda Item #11.1.

�
"'"(�
• , . .. l � �
-s-,:-� �
· hE���
August 11, 2021
070901000055'2'1-•'•"""'MIXED MDC 970

HOFF DUANE & SUSAN
6600 FRANCE AVES STE 550
MINNEAPOLIS, MN 55435-1810
l1ll11+1
1 •1•·1•11
1llh1l11l111
••"11•1
1 1
•111•11111
1 •
1 1••11
1 111
1 Dear Hoff Duane & Susan,
Account number:
006087-000
City of St. Helena
Utility Billing Department
1572 Railroad Avenue
St. Helena CA 94574
(707) 968-2745
Service Address:
2600 Spring Mtn Rd

MONTHLY ALLOCATION UPDATE - NOTICE OF WATER PENAL TY
Like many California communities, St. Helena is facing a critical water crisis. Lack of rain and use of water from Bell Canyon Reservoir to fight last year's wildfires has contributed to this worsening emergency. This letter is being provided as a monthly update for your actual water use and notice that your water usage in June 2021 has resulted in a penalty.

Actual Water Use Update
Your July 2021 water allocation was: 8.500 units, or 6,358 gallons. The meter read for July reflects the following use 535.030 units, or 400,229 gallons.

Penalties
In recognition of the dire situation, City Council adopted a penalty structure for customers who exceed their property's monthly water allocation. These penalties are designed to minimize the impact on those bills that exceed the allocation by a little bit, while sending a strong message to unusually heavy water users. Given this is the first-time penalties have been imposed, on July 13, 2021, City Council adopted a program to suspend 75% of the penalties for overuse in June 2021 and to suspend 50% of the penalties for overuse in July 2021 with the ability for customers to have 100% of the penalties forgiven if allocation targets are met, in the months of August, September, October, and November 2021 (see enclosure for additional information). Below is a summary of the penalties that will be assessed on your water utility account.

Because you exceeded your July 2021 water allocation by: 526.530 units, or 393,871 gallons you are being assessed a penalty in the amount of $65,003.40. This penalty amount represents 50% of the total penalty amount of: $130,006.80. This penalty wilt be added to your bi-monthly utility bill.

Continuing Water Conservation
It is not too late to start conserving water! As we have in the past, we have no doubt our friends and neighbors in St. Helena will emerge from this crisis stronger and more resilient than ever! As we did last year during wildfire season and throughout COVID-19, we must pull together as a community to weather this worsening drought. If we do not, it is inevitable that we will be forced to move from Phase II water restrictions currently in place to the more painful restrictions necessary in Phase Ill.

Learn More
For more information and tips for how you can do your part to help our community navigate through the current drought, visit www.cityofsthelena.org!
Questions or Concerns?
Contact City staff at (707) 968-2745 or by email at [email protected].

Agenda Item #11.1.

EXHIBIT E
Agenda Item #11.1.

Bryan Rohde
From:

Sent:

To:

Cc:

Subject:

Attachments:

Good morning Jenn,
Bryan Rohde
Tuesday, August 24, 2021 7:53 AM
[email protected]
Rita Penniston; Jack McLeod
RE: [External] City of St. Helena billing inquiry, 3rd request 051921 - Phase II Penalty Letter - Hoff.pdf; City of St. Helena 07 .15.21.pdf Thank you for this information. The June invoice (received on August 2nd) was our first time learning of the declared water emergency and the implications for usage. Please note that t he original notice from May was sent to an outdated mailing address, so it was never received.

Given the options below, can you provide guidance on the exception permit? We will want to apply for an additional allocation for outdoor irrigation. Also, it appears that these penalties can be forgiven if the customer stays within their allocation for August - November. We wou ld like to comply with this option for a waiver of penalty; however, we are 75% through August and have just learned about this option . Is there leniency for the penalties to be waived if we limit water usage for Septem ber - November?
We really appreciate your help, and look forward to working with you towards resolution in the near future.

Thanks,
Bryan Rohde I Senior Financial Accountant
~ Olympus Ventures LLC
6600 France Avenue S., Su it e 550, Minneapolis, MN 55435 OFFICE 952.324.8914 I MOBILE 507.858.5599
Agenda Item #11.1.

EXHIBIT F
Agenda Item #11.1.

'Iv Request for Fee Waiver
DATE SUBMITTED _____ _
RECEIVED ev: ______ _
PllOPERH & Bil.I.ING INH>Ri\L\TION
Date Applying: Type of Fee Requesting lo be Waived Fee Already Assessed:
12/15/2021 Water penalties □ No ~ Yes Date: 08 /31 /2021 ------ CuslOIIICf or Company Name: Daytime Phone Numbor Olher Phone Number Duane and Susan Hoff 952-324-8914 507-858-5599
Mailing Address City Sllllc I ZipCodc
6600 France Ave S. Suite 550 Minneapolis MN 55435
Email
[email protected]

EXPLANATION OF REQUEST FOR WAIVER
Describe why you feel foes should be waived 3nd/or refunded: (A113.ch supponing docum~-nlation) We are requesting full waiver of water penalties assessed to 2600 Spring Mountain Rd during June • August 2021. The total assessed penalties are: $251,379.28.

This waiver request is being submitted as a result of the penalty forgiveness program that was approved by the city on 7/27/21, which stipulates that a customer can have penalties forgiven if they do not exceed their allocation in August, September, October, and November. Once the program was approved, notices (dated 8/11 /21) were mailed and received on 8/23/21. Upon receipt, we drastically reduced our water usage and strictly adhered to our allocations for September - November with no overages during those periods.

Given that notice of the forgiveness program was not received until 8/23/21, we were given no opportunity to adjust water usage in August for full compliance with the program guidelines. As a result, we are requesting that the water penalties be fully waived for our adherence to the forgiveness program during September- November.

PLEASE READ 1..~ SIGN THE FOLLOWING STATEMENTS

AS ACKNOWLEDGED AND REQUIRED BY THIS AGREEMENT
I am requesting a waiver under Ordinance 2018-1 adopted by lhe City of SL Helena. By signing this form [ certify the information provided Is accurate and true, and agree lo comply wilh all requirements as set forth in lhe policy. I certify that I have read, wtderstand wid agree to the tenns and conditions of a waived penalty and/or fee identified below. • Customers must submit a request in writing to the City Clerk. • Customers must submit the request within 30 days from the date if the penalty and/or fee has already been assessed. • Ally waived penalties and/or fees alreay paid by the customer will be reversed from lhe customer's accoUlll and/or rcfwded to the customer in lhe same mann.er in as the original payment • I am ewan: all decisions by the City M_!magtr · c final. There arc no appeals.

City of St. Helena: City Clerk
I 480 Main Street
St. Helena, CA 95404
Email: [email protected].!,
Website: \ vw.cilyofsLhelena.orl!l\\'ater
Phone:707-968-2640
Updalcd 07/11/2018
Agenda Item #11.1.

EXHIBIT G
Agenda Item #11.1.

From: April Mitts <[email protected]>
Sent: Thursday, March 161 2023 7:34 PM
To: Bryan Rohde <[email protected]>
Cc: Cindy Tzafopoulos <[email protected]> Subject: Penalty Appeal
Hi Bryan,
I wanted to follow up with you on bringing the appeal for fee waiver back to the City Council for consideration. I am planning on bringing this back to Council on 3/28/23 for Council consideration. After further analysis by staff, the only approved use of City water on this property is-for residential purposes, so the penalty amount Incurred will not change .

When this is brought back to Council, I will include the additional information provided by Mr. Proctor on 1/24/23 and Council can then make a determination on the appeal for waiver of penalties.

Please let me know if 3/28/23 will work for your clients and if you have any questions. If that date does not work, please reach out to City Clerk, Cindy Tzafopoulos (cc'd here) no later than Tuesday, March 21, 2023 so we can remove the item from the Agenda. I am on vacation next week and wanted to provide you with an alternate contact.

Thank you.

April Mitts
Assistant City Manager
1088 College Avenue
St. Helena, CA 94574
Agenda Item #11.1.

EXHIBIT H
Agenda Item #11.1.

From: April Mitts <[email protected]>
Sent: Wednesday, April S, 2023 4:42 PM
To: Bryan Rohde <[email protected]>
Subject: St. Helena Municipal Code
Hi Bryan,
It was great talking to you today. Per your request, here is the section of the municipal code we briefly discussed earlier:
https://www.codepublishing.com/CA/St Hele na/tt !/StHe lena 13/StHelena 1304.htmllt13 .04.040

1. Section 13.04.050.H. - Outside City Limit Water Connections Please let me know if you have any questions.

April Mitts
Assistant City Manager
1088 College Avenue
St. Helena, CA 94574
707 .968.2751
[email protected]
1 Agenda Item #11.1.

EXHIBIT I
Agenda Item #11.1.

From: Eric Raushel <[email protected]>
Sent: Monday, February 13, 2023 3:18 PM
To: Bryan Rohde <[email protected]>
Subject: City of St. Helena Address Confirmation Phone Call Hello Bryan,
As we discussed earlier, the City of St. Helena called the main office phone number for Olympus Ventures requesting that we confirm the current billing address for Duane & Susan Hoff. They said the current address they had was 3033 Excelsior (the old office). I gave them our updated address of 6600 France and that was all they needed. Please let me know if there is anything else I can do to assist. Thanks!
Eric Raushel | Senior Real Estate Accountant
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8907| MOBILE 218.839.0825
~ Olympus Ventures LLC
Agenda Item #11.1.

EXHIBIT J
Agenda Item #11.1.

Updated 06/04/2021
Water Exception Permit Form

PROPERTY & BILLING INFORMATION
Date Applying Customer or Company Name
Account Number Phone Number Email Address
Mailing Address City State Zip Code
TYPE OF EXCEPTION REQUEST – CHECK ALL THAT APPLY
Allocation based on previous water use - it can be demonstrated that water conservation measures beyond those required in Chapter 13.12 were in place prior to the preceding nonshortage year. An additional quantity of water may be allocated to recognize the higher efficiency in place prior to the water emergency condition.

Allocation based on previous water use – it can be demonstrated that efficient and essential water uses are not represented in average water use.

Irrigation – Non-residential customers with irrigation and domestic use provided by the same water meter may receive an additional landscape allocation of up to 70 gallons (Phase II) per day per 1,000 square feet of landscaped area during April through October by documenting the landscaped square footage served by city water.

Single-family residential - parcels exceeding seven thousand (7,000) square feet in area, the quantity of up to twenty (20) gallons per day for each one thousand (1,000) square feet that the property area exceeds seven thousand (7,000) square feet for the purpose of maintaining mature landscape or orchard plants.

For medical conditions of a resident, a quantity as required to maintain health standards.

Additional Amount Requested (if known): Check One: ____ HCF -or- _____ Gallons Additional supporting information/considerations (please attach any additional supporting documentation):

DATE SUBMITTED: RECEIVED BY:
10/5/21 Duane and Susan Hoff
006087-000 952-324-8914 [email protected]
6600 France Ave S., Suite 550 Minneapolis MN 55435
□
[Z]
□
□
200 per day ✓
Property at address 2600 Spring Mountain has a tasting room on the property. Therefore, we are requesting 200 gallons per day for purpose of this tasting room.

Agenda Item #11.1.

PLEASE READ AND SIGi\ TIIE FOLLOWING STATE1\l£i\TS AS ACl(NOWLEDGED .\'.\D R[QlllRED B\' nus AGREE:\IE:\T
If this condition is grant.ed, I agree to:
• Submit a request io writing to the Director of Public Works; • Adhere to all specific requirements contained within the exception; and • /\Jly other specified conditions as detennined by the City of St. Heleoo or Water Advisory Board • By signing below, opplicant acknowledges and consents to the Water Advisory Board's review and use of applicant's customer records for the purpose of mok.ing a decision related to the pennit opplication, and ndurSlnnds that such infonnation, including historicnl water use. may be discussed d disclosed at a public meeting City of St Helena: Public Works
1572 Railroad Avenue
St. Helena, CA 94574
Water use exception is hereby:! ~pprovedf
Email: [email protected]
Website: www.cityofsthclcna.org/Phaseii
Phone:707-968-2746

STAFF USE ONLY
pcnied
Details of exception granted, including additional allocation:

If denied, reason for denial:

Approved by (check one): I I 11 Public Works Director II 11 Water Advisory Board Upd;itcd 06/04/2021
Agenda Item #11.1.

EXHIBIT K
Agenda Item #11.1.

Bryan Rohde
From:

Sent:

To:

Cc:

Subject:

Thanks Martin!
Bryan Rohde
Tuesday, November 2, 2021 12:40 PM
Martin Beltran
Mandy Kelloqq; Jack McLeod; Nicolas Diaz Larranaqa
RE: [External] Water Exception Permit - Duane & Susan Hoff Bryan Rohde I Senior Financial Accountant
(i} Ofympus Ventures LLC
6600 France Avenue S., Suite 550, Minneapolis, MN 55435 OFFICE 952.324.8914 I MOBILE 507.858.5599
From: Martin Beltran <[email protected]>
Sent: Monday, November 1, 20215:37 PM
To: Bryan Rohde <[email protected]>
Cc: Mandy Kellogg <[email protected]>; Jack McLeod <[email protected]>; Nicolas Diaz Larranaga <[email protected]>
Subject: RE: [External] Water Exception Permit - Duane & Susan Hoff Hi Bryan,
Thank you for submitting the complete exception req uest. The water exception permit request for the tasting room was approved. You will be receiving 200 gallons per day as an additiona l allotment which is an approximately 8.56 HCF (units) per a 30 day month. The breakdown of the additiona l allotment is included in the attachment. The additional allotment will be added retroactive to June 1st, and if there have been any penalties assessed, we will be completing any applicable adjustments.

Thank you,
Martin Beltran
Public Works Management Analyst
City of St. Helena
1572 Railroad Avenue
St. Helena, CA 94574
Office: 707-968-2746 Fax: 707-963-7966
ri
Agenda Item #11.1.

Report to the City Council
Regular City Council - 09 May 2023
Agenda Section: OLD BUSINESS
Subject: Presentation of the Water and Wastewater Rate Study Final Report and requesting authorization to proceed with the Proposition 218 noticing requirements.

CEQA
Determination:

Not a CEQA project
Prepared By: Mandy Kellogg, Administrative Services Director Reviewed By: April Mitts, Assistant City Manager
Approved By: Anil Comelo, City Manager

BACKGROUND
The purpose of a Water and Wastewater Rate Study ("rate study") is to determine the level of funding required over the next five years to ensure that each utility is meeting financial obligations for ongoing operations and maintenance, debt service, and capital improvements while maintaining prudent reserves. Updating the water and wastewater rates to keep up with the rising costs of providing safe and high-quality drinking water and wastewater services is a key component of maintaining the financial viability of the utilities, including maintaining healthy fund balances/reserves for emergencies and applicable bond covenants, debt coverage ratios for bond covenants, and strong credit ratings. Updates to the rate study are also necessary to fund investments in infrastructure maintenance and improvements which are mandated or otherwise necessary for safe and efficient operation of the utilities.

California's Proposition 218 requires that rates be equitably apportioned and proportional to the cost of providing services. The rate study conducts a cost-of-service analysis, which evaluates the cost of providing water and wastewater and allocates those costs to rate structure components to ensure the proposed rates are aligned with the costs to provide service and that all customer classes are subject to the equitable cost recovery whether they are located inside or outside of City limits.

Agenda Item #11.2.

On March 25, 2022, the City Council approved a resolution authorizing the City Manager to execute a Professional Services Agreement with Raftelis Financial Consultants to provide services associated with a Water and Wastewater Rate Study based on their experience as one of the largest firms in California, and the country, specializing in financial, rate, and management consulting for water, wastewater, and stormwater utilities. In addition, Raftelis has assisted numerous agencies in California implementing conservation-based rate structures, with special consideration for climate variation, cyclical drought conditions, and long-term passive conservation.

The City's key objective of the current rate study is to minimize the growth of the rates while ensuring that sufficient funds are generated to provide for a stable and wellfunctioning water and wastewater system. To ensure that this objective is achieved, the City engaged a Water and Wastewater Rate Study Advisory Committee to collaborate in the following:
• Reviewing and confirming financing assumptions and options presented by staff and the consultant for CIP projects in the first five years of the Rate Study, giving due consideration to project prioritization (immediate need, and estimated cost) and the proper balance of using cash versus debt.
• Reviewing and confirming significant financial assumptions in the Study, such as reserves, adequacy of sinking funds, and designated and undesignated fund balances in accordance with generally accepted municipal financial principles. • Review findings and recommendations to ensure equitable allocation of costs related to industrial, commercial, and residential users, rate models, and recommend appropriate rates and changes with consideration given to location, setting, special demands or unique conditions.

The Water & Wastewater Rate Study Advisory Committee participated in a total of eleven meetings to review materials related to the rate study and make recommendations to City Council regarding key components of the study.

DISCUSSION
The overall rate study process outlined below is utilized in the development of both water and wastewater rates.

1. Financial Plan: Develop cash flow projections for the Water and Wastewater Enterprise to determine the amount of revenue required from water and wastewater rates to fully recover the costs of providing service.

2. Cost of Service Analysis: Allocate total costs to system components, and then to various user classes, based on unique characteristics.

3. Rate Design: Develop rates to different customers classes and sub-classes, based on cost of service, that generate sufficient revenues to recover costs, and communicate policy preferences of the agency.

Agenda Item #11.2.

4. Administrative Record Preparation: Develop an administrative record (this study report) to document the underlying inputs, assumptions, analyses, and results of the rate study.

5. Rate Adoption: Proposed rates may be adopted by City Council only after holding a public hearing in accordance with Proposition 218 requirements.

In collaboration with the appointed members of the Water and Wastewater Advisory committee, Raftelis presented several recommendations pertaining to the Financial Plan, Cost of Service Analysis, and Rate Design to City Council on March 14, 2023, included here: March 14, 2023 Presentation of Water and Wastewater Rate Study Recommendations. City Council approved the recommendations, which are included in the Water and Wastewater Rate Study Final Report (Attachment A) as follows:

Water Rate Study
Raftelis developed a water rate model to project financial calculations over the next ten fiscal years with projections shown in the Final Report through the five-year rate-setting period of FY 2027-28. This included inflationary assumptions, water connection growth projections, and projected water sales. In addition, a Water Enterprise Capital Improvement Plan was developed identifying $35.86 million in water improvement projects to be rate funded with future cash and revenue bond proceeds, which is shown in Table 4-14: Water Capital Improvement Plan (page 43) in the Final Report. The proposed capital project funding is as follows:

Description FY
2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Go-Bond
Funded $ - $302,400 $315,706 $327,702 $338,189 $349,011 Rate
Funded $ - $ - $ - $ - $ - $726,366
Bond
Funded $ - $3,019,940 $7,160,513 $11,502,580 $9,885,943 $1,931,474 Total
Funded
CIP
$ - $3,321,890 $7,476,219 $11,830,282 $10,224,132 $3,006,851 In order to generate adequate revenue over the rate study period to fund the operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding, the following water revenue adjustments are being proposed:

Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Effective
Month
Sept. 1,
2023 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 Revenue
Adjustments 28% 8% 8% 8% 8%
Agenda Item #11.2.

A cost-of-service analysis was conducted by Raftelis to allocate the revenue requirements to the different customer classes. In addition, Raftelis worked closely with City staff, the Water and Wastewater Rate Study Advisory Committee, and the City Council to evaluate potential changes to the existing rate structure, which included variable rate tiers and tier allotments. The proposed three-tier structure is defined by water source of supply from low cost to high-cost water. The sources in order of tiers are:
• Tier 1: Bell Canyon Surface Water
• Tier 2: Stonebridge Wells Groundwater
• Tier 3: Purchased Water from the City of Napa
The allotment in each tier represents the average available volume of water, per connection (or residential dwelling unit where master-metered), in normal supply conditions and are proposed as follows:

Tier 1 0 - 11 HCF*
Tier 2 12 - 15 HCF*
Tier 3 16+ HCF*
*One Hundred Cubic Feet (HCF) = 748.05 gallons
The proposed Five-Year Water Rate Schedule on Table 4-49 (page 85) of the Final Report shows rates for FY 2024 through FY 2028 and incorporates the recommendation for a tiered billing structure. Below shows Single Family Residential estimated bill impacts for FY 2024:

Water Shortage Surcharges
Water shortage rates are designed to recover net revenue shortfalls during periods of reduced water sales due to mandatory water conservation. Raftelis analyzed the potential loss in revenue that would be incurred based on projected water use reduction in response to water restrictions during drought periods. Table 4-52 (page 87) in the Final Agenda Item #11.2.

Report shows the proposed five-year schedule of the Water Shortage Surcharges for FY 2024 through FY 2028.

Wastewater Rate Study
Raftelis developed a water rate model to project financial calculations over the next ten fiscal years with projections shown in the Final Report through the five-year rate-setting period of FY 2027-28. This included inflationary assumptions and wastewater connection growth projections. In addition, a Wastewater Enterprise Capital Improvement Plan was developed identifying $16.30 million in water improvement projects to be rate funded with future cash and revenue bond proceeds, which is shown in Table 5-11: Wastewater Capital Improvement Plan (page 100) in the Final Report. The proposed capital project funding is as follows:

Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Go-Bond
Funded $ - $493,500 $1,563,181 $930,766 $291,218 $300,537 Bond
Funded $ - $2,462,040 $537,960 $ - $ - $ -
Rate
Funded
$
5,699,800 $ - $278,271 $892,762 $1,432,136 $1,417,372
Total
Funded
CIP
$5,699,800 $2,955,540 $2,379,412 $1,823,527 $1,723,354 $1,717,909 In order to generate adequate revenue over the rate study period to fund the operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding, the following wastewater revenue adjustments are being proposed:

Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Effective
Month
Sept. 1,
2023 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 Revenue
Adjustments 50% 4% 4% 4% 4%
Raftelis performed a cost-of-service analysis for the Wastewater Enterprise, which is used to allocate the overall rate revenue requirement to customer classes based on their proportion of burden on the wastewater system. In addition, flow and strength loadings of the City's wastewater treatment plant is attributed to various user classifications.

The proposed Five-Year Wastewater Rate Schedule on Tables 5-35, 5-36, and 5-37 (pages 126 - 127) of the Final Report shows rates for FY 2024 through FY 2028. Below shows Single Family Residential estimated bill impacts for FY 2024:

Agenda Item #11.2.

Next Steps
Proposition 218 outlines several noticing requirements related to the next steps in implementing the proposed rates. The City is required to mail information regarding the proposed rates to every property owner. With approval of the City Council, staff will mail the Proposition 218 Notice (Attachment B) to each property owner by May 12, 2023 to comply with the noticing requirement. In addition, the City must hold a Public Hearing at least 45 days after the mailing of the Notice. At this time, residents will have the opportunity to protest the proposed rates. If a majority of affected property owners or ratepayers protest the increase before the conclusion of a required public hearing, the City is prohibited by law from increasing the water and wastewater rates.

The timeline for the outstanding tasks to complete the rate study is as follows:

Task Description Date
Customer Noticing Mail Proposition 218
Notices May 9, 2023
City Council - Public
Hearing
First Reading Approving
Rates June 27, 2023
City Council - Public
Hearing
Second Reading and
Adoption of Rates July 25, 2023
Customer Outreach
Customer Education,
Conservation, and
Compliance
May - August 2023
Agenda Item #11.2.

Rate Implementation Effective Date of New
Rates September 1, 2023

FISCAL IMPACT
There is no Fiscal Year 2022-23 impact associated with this report.

RECOMMENDED ACTION
Receive the Water and Wastewater Rate Study Final Report and Authorize staff to proceed with the Proposition 218 noticing requirements.

ATTACHMENTS
Attachment A - St. Helena Water and Wastewater Final Report Attachment B - StHelena-Prop-218-Notice-English
Attachment B - St. Helena-Prop-218-Notice- Spanish
Agenda Item #11.2.

CITY OF ST. HELENA
Water and Wastewater
Cost of Service and
Rate Study
FINAL REPORT / APRIL 20, 2023
Agenda Item #11.2.

Agenda Item #11.2.

445 S. Figueroa St, Suite 1925, Los Angeles, CA 90071
www.raftelis.com
April 20, 2023
Ms. Mandy Kellogg
Administrative Services Director
City of St. Helena
1088 College Avenue
St. Helena, CA 94574
Subject: Water and Wastewater Cost of Service and Rate Design Study Dear Ms. Kellogg,
Raftelis is pleased to provide this Water and Wastewater Cost of Service and Rate Design Study Report to the City of St. Helena. The purpose of the study was to develop a proposed five-year schedule of water and wastewater rates for Fiscal Year (FY) 2023-24 through FY 2027-28 that are cost-justified, consider the community’s values, based on industry standard rate setting frameworks, and align with the substantive requirements of California’s Proposition 218.

The primary objectives of the study included:
» Development of a ten-year financial plan for the City’s Water and Wastewater Enterprises to ensure financial sufficiency, meet operating costs, fund long-term capital needs, and maintain prudent reserves » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers
» Design drought surcharge rates for times of declared water shortages » Develop five years of water and wastewater rates for adoption This report details results and recommendations related to the development of the proposed financial plans, cost of service analyses, and proposed rate calculations. It has been a pleasure working with you and we thank you, City staff, the Rate Study Advisory Committee, City Council, and members of the community for the support provided to Raftelis during this study.

Sincerely,
Kevin Kostiuk
Senior Manager
Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report Contents

1. Executive Summary ................................................................... 12

1.1. Study Overview ........................................................................................................... 12

1.2. Rate Study Process .................................................................................................... 12

1.3. Proposed Water Financial Plan .................................................................................. 13

1.4. Proposed Water Rates ................................................................................................ 17

1.5. Proposed Water Shortage Surcharges...................................................................... 19

1.6. Proposed Wastewater Financial Plan ........................................................................ 20

1.7. Proposed Wastewater Rates ...................................................................................... 24

2. Introduction ................................................................................ 27

2.1. Agency Overview ........................................................................................................ 27

2.2. Study Overview ........................................................................................................... 27

3. Legal Requirements and Rate Setting Methodology ................ 30

3.1. Legal Requirements .................................................................................................... 30

3.2. Rate-Setting Methodology .......................................................................................... 31

4. Water Rate Study ....................................................................... 33

4.1. Key Inputs and Assumptions ..................................................................................... 33

4.1.1. Current Water Rates ........................................................................................................ 33

4.1.2. Water Enterprise Financial Assumptions ......................................................................... 35

4.1.3. Projected Water Service Connections ............................................................................. 35

4.1.4. Projected Water Sales ..................................................................................................... 36

4.2. Financial Plan .............................................................................................................. 37

4.2.1. Water Enterprise Revenue Under Current Rates ............................................................ 37

4.2.2. Water Operations & Maintenance Expenses ................................................................... 41

4.2.3. Water Debt ....................................................................................................................... 41

4.2.4. Water Enterprise Capital Improvement Plan .................................................................... 42

4.2.5. Water Financial Policies................................................................................................... 45

4.2.6. Status Quo Water Financial Plan ..................................................................................... 45

4.2.7. Proposed Water Financial Plan ....................................................................................... 48

4.3. Water Cost of Service Analysis ................................................................................. 53

4.3.1. Methodology .................................................................................................................... 53 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report

4.3.2. Water Rate Revenue Requirement .................................................................................. 53

4.3.3. Water System Peaking Factors ....................................................................................... 54

4.3.4. Functionalization and Allocation of Expenses .................................................................. 55

4.3.5. Water O&M Expense Allocation ....................................................................................... 58

4.3.6. Water Capital Allocation .................................................................................................. 61

4.3.7. Water Non-Rate Revenue (Revenue Offset) Allocation ................................................... 64

4.3.8. Preliminary Water Cost of Service Allocation .................................................................. 66

1.2.9. Allocation of Fire Protection Costs ................................................................................... 67

4.3.9. Peaking Units of Service .................................................................................................. 70

4.3.10. Adjusted Water Cost of Service .......................................................................... 72

4.3.11. Cost of Service Reallocation ............................................................................... 74

4.3.12. Unit Cost Calculation .......................................................................................... 76

4.3.13. Water Cost Allocation to Rate Components ....................................................... 77

4.4. Proposed Water Rates ................................................................................................ 79

4.4.1. Proposed Rate Structure Modification ............................................................................. 79

4.4.2. Water Service Charges (Test Year FY 2023-24) ............................................................. 79

4.4.3. Fire Line Service Charges (Test Year FY 2024) .............................................................. 81

4.4.4. Water Volume Rates (Test Year FY 2023-24) ................................................................. 83

4.5. Proposed Water Shortage Surcharges...................................................................... 85

4.5.1. Calculation of Proposed Water Shortage Surcharges ..................................................... 85

5. Wastewater Rate Study ............................................................. 90

5.1. Key Inputs and Assumptions ..................................................................................... 90

5.1.1. Current Wastewater Rates............................................................................................... 90

5.1.2. Wastewater Enterprise Financial Assumptions ................................................................ 91

5.1.3. Projected Wastewater Billing Units of Service ................................................................. 93

5.2. Wastewater Financial Plan ......................................................................................... 95

5.2.1. Wastewater Enterprise Revenue under Current Rates .................................................... 95

5.2.2. Wastewater Operations & Maintenance Expenses .......................................................... 98

5.2.3. Wastewater Debt ............................................................................................................. 98

5.2.4. Wastewater Enterprise Capital Improvement Plan ........................................................ 100 Wastewater Enterprise Financial Policies ................................................................................ 102

5.2.5. Status Quo Wastewater Financial Plan ......................................................................... 102

5.2.6. Proposed Wastewater Financial Plan ............................................................................ 106 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report

5.3. Wastewater Cost of Service Analysis ..................................................................... 111

5.3.1. Methodology .................................................................................................................. 111

5.3.2. Wastewater Rate Revenue Requirement ...................................................................... 111

5.3.3. Functionalization and Allocation of Expenses ................................................................ 112

5.3.4. Wastewater Enterprise O&M Expense Allocation .......................................................... 113

5.3.5. Wastewater Enterprise Capital Allocation ...................................................................... 114

5.3.6. Wastewater Cost of Service Allocation .......................................................................... 115

5.3.7. Mass Balance Analysis .................................................................................................. 117

5.3.8. Wastewater Unit Costs .................................................................................................. 119

5.3.9. Wastewater Cost Allocation to Customer Classes ......................................................... 119

5.3.10. Wastewater Revenue Recovery within Customer Classes ............................... 121

5.4. Proposed Wastewater Rates .................................................................................... 125

5.4.1. Proposed Wastewater Rates (Test Year FY 2023-24) .................................................. 125

6. Customer Bill Impacts.............................................................. 128

6.1. Bi-Monthly Water Bill Impacts .................................................................................. 128

6.2. Bi-Monthly Wastewater Bill Impacts ........................................................................ 128 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report Tables
Table 1-1: Proposed Water Revenue Adjustments ................................................................................... 13 Table 1-2: Proposed Changes to Tiers and Tier Allotments ..................................................................... 18 Table 1-3: Proposed Five-Year Water Rate Schedule – Base Rates ....................................................... 18 Table 1-4: Proposed Five-Year Schedule of Water Shortage Surcharges ............................................... 19 Table 1-5: Proposed Wastewater Revenue Adjustments ......................................................................... 20 Table 1-6: Proposed Five-Year Wastewater Rate Schedule .................................................................... 25 Table 4-1: Current Water Rates ................................................................................................................ 34 Table 4-2: Current Tier Allotments for Water Volume Rates ..................................................................... 34 Table 4-3: Water Inflationary Assumptions ............................................................................................... 35 Table 4-4: Projected New Water Connection Growth ............................................................................... 36 Table 4-5: Count of Water Connections .................................................................................................... 36 Table 4-6: Projected Water Use Under Existing Rate Structure ............................................................... 37 Table 4-7: Projected Fixed Charge Revenue from Existing Rates ............................................................ 38 Table 4-8: Projected Commodity Charge Revenues Under Current Water Rates .................................... 39 Table 4-9: Projected Raw Water Rate Revenues ..................................................................................... 39 Table 4-10: Other Water Enterprise Revenues ......................................................................................... 40 Table 4-11: Summary of Projected Water Enterprise Revenues Under Current Rates ............................ 40 Table 4-12: Projected Water Enterprise O&M Expenses .......................................................................... 41 Table 4-13: Water Debt Service ................................................................................................................ 41 Table 4-14: Water Capital Improvement Plan ........................................................................................... 43 Table 4-15: Water Capital Improvement Plan Proposed Funding ............................................................. 44 Table 4-16: Projected Water Reserve Targets .......................................................................................... 45 Table 4-17: Water Operating Cash Flow (Fund 561)– Status Quo Financial Plan ................................... 46 Table 4-18: Status Quo Water Financial Plan Pro Forma (Funds 561, 763, 764) .................................... 47 Table 4-19: Proposed Water Revenue Adjustments ................................................................................. 48 Table 4-20: Water Operating Cash Flow (Fund 561) – Proposed Financial Plan ..................................... 49 Table 4-21: FY 2023-24 Water Rate Revenue Requirement .................................................................... 54 Table 4-22: Water System Peaking Factor Allocations ............................................................................. 55 Table 4-23: Allocation of Functional Categories to Water Cost Causation Components .......................... 57 Table 4-24: Summary of Water O&M Expenses by Functional Category ................................................. 58 Table 4-25: Allocation of Water O&M Expenses to Cost Causation Components .................................... 60 Table 4-26: Summary of Water Enterprise Capital Assets by Functional Category .................................. 61 Table 4-27: Allocation of Functionalized Water Capital Assets to Cost Causation Components .............. 63 Table 4-28: Allocation of Revenue Offsets to Cost Causation Components ............................................. 65 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report Table 4-29: Preliminary Water Cost of Service Allocation (FY 2024) ....................................................... 67 Table 4-30: Private Fire Line Equivalent Fire Demand ............................................................................. 69 Table 4-31: Public Fire Hydrant Equivalent Fire Demand ......................................................................... 69 Table 4-32: Fire Protection Allocation Basis ............................................................................................. 69 Table 4-33: Peaking Units of Service ........................................................................................................ 71 Table 4-34: Peaking Units for Fire Protection ........................................................................................... 72 Table 4-35: Adjusted Cost of Service Allocation (Test Year FY 2024) ..................................................... 74 Table 4-36: Reallocation of Cost of Service by Cost Causation Component ............................................ 75 Table 4-37: Units of Service – Equivalent Meters ..................................................................................... 76 Table 4-38: Unit Cost of Service by Cost Causation Component ............................................................. 76 Table 4-39: Recovery of Cost Causation Components by Charge Type .................................................. 77 Table 4-40: Cost to Serve by Water Customer Class ............................................................................... 78 Table 4-41: Proposed Changes to Tiers and Tier Allotments ................................................................... 79 Table 4-42: Water Service Charge Calculation (Test Year FY 2024) ....................................................... 80 Table 4-43: Bi-Monthly Water Service Charges (Test Year FY 2024) ...................................................... 80 Table 4-44: Fire Line Service Charge Unit Charge Calculation (Test Year FY 2024) ............................... 82 Table 4-45: Fire Line Service Charge Unit Charge Calculation (Test Year FY 2024) ............................... 82 Table 4-46: Water Supply Unit Rate ......................................................................................................... 83 Table 4-47: Conservation Unit Rate .......................................................................................................... 83 Table 4-48: Water Volume Rates Calculation (Test Year FY 2023-24) .................................................... 84 Table 4-49: Proposed Five-Year Water Rate Schedule ............................................................................ 85 Table 4-50: Projected Water Use Reduction by Water Shortage Stage (FY 2023-24) ............................. 86 Table 4-51: Calculation of Water Shortage Surcharges (Test Year FY 2023-24) ..................................... 86 Table 4-52: Calculated Water Shortage Phase Rates per HCF (Test Year FY 2024) .............................. 87 Table 4-53: Proposed Five-Year Schedule of Water Shortage Surcharges ............................................. 88 Table 5-1: Current Wastewater Rate Schedule ........................................................................................ 91 Table 5-2: Wastewater Inflationary Assumptions ...................................................................................... 92 Table 5-3: Projected New Wastewater Connection Growth ...................................................................... 93 Table 5-4: Projected Wastewater Demand Factors .................................................................................. 93 Table 5-5: Projected Wastewater Billing Units Under Existing Rate Structure ......................................... 94 Table 5-6: Projected Rate Revenues under Current Wastewater Rates .................................................. 96 Table 5-7: Other Wastewater Revenues ................................................................................................... 97 Table 5-8: Summary of Projected Wastewater Revenues Under Current Rates ...................................... 97 Table 5-9: Projected Wastewater O&M Expenses .................................................................................... 98 Table 5-10: Wastewater Debt Service ...................................................................................................... 99 Table 5-11: Wastewater Capital Improvement Plan ................................................................................ 100 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report Table 5-12: Wastewater Capital Improvement Plan Proposed Funding ................................................. 101 Table 5-13: Wastewater Reserve Targets .............................................................................................. 102 Table 5-14: Wastewater Operating Cash Flow (Fund 571) – Status Quo Financial Plan ....................... 103 Table 5-15: Status Quo Water Financial Plan Pro Forma (Funds 561, 763, 764) .................................. 105 Table 5-16: Proposed Wastewater Revenue Adjustments ..................................................................... 106 Table 5-17: Wastewater Operating Cash Flow (Fund 571) – Proposed Financial Plan .......................... 107 Table 5-18: FY 2024 Wastewater Rate Revenue Requirement .............................................................. 112 Table 5-19: Allocation of Functional Categories to Wastewater Cost Causation Components .............. 113 Table 5-20: Summary of Wastewater O&M Expenses by Functional Category ...................................... 113 Table 5-21: Allocation of Wastewater O&M Expenses to Cost Causation Components ........................ 114 Table 5-22: Summary of Wastewater Capital Assets by Functional Category ........................................ 114 Table 5-23: Allocation of Functionalized Wastewater Capital Assets to Cost Causation Components .. 115 Table 5-24: Wastewater Cost of Service Allocation (Test Year FY 2023-24) ......................................... 117 Table 5-25: FY 2021-22 Mass Balance Analysis .................................................................................... 118 Table 5-26: Wastewater Unit Costs (Test Year FY 2024) ....................................................................... 119 Table 5-27: Wastewater Cost Allocation to Customer Classes (Test Year FY 2023-24) ........................ 120 Table 5-28: Cost of Service Recovery – SFR Fixed & Variable .............................................................. 121 Table 5-29: Cost of Service Recovery – MFR Fixed & Variable ............................................................. 122 Table 5-30: Cost of Service Recovery – Non-Residential Fixed & Variable ........................................... 122 Table 5-31: Average Winter Consumption Costs – Residential .............................................................. 123 Table 5-32: Non-Residential Service Charge.......................................................................................... 123 Table 5-33: Non-Residential Flow Rate Calculation ............................................................................... 124 Table 5-34: Wastewater Cost of Service, by User Class ........................................................................ 124 Table 5-35: Proposed Residential Wastewater Rate Calculation (Test Year FY 2024) .......................... 126 Table 5-36: Proposed Non-Residential Fixed Wastewater Rate Calculation (Test Year FY 2024) ........ 126 Table 5-37: Proposed Non-Residential Variable Wastewater Rate Calculation (Test Year FY 2024) .... 127 Figures
Figure 1-1: Water Capital Improvement Plan ............................................................................................ 14 Figure 1-2: Proposed vs. Status Quo Water Financial Plan ...................................................................... 15 Figure 1-3: Proposed Water Financial Plan – Projected Ending Balances ............................................... 16 Figure 1-4: Proposed Water Financial Plan - Debt Coverage ................................................................... 17 Figure 1-5: Single Family Residential Bi-Monthly Water Bill Impacts (FY 2024) ...................................... 20 Figure 1-6: Wastewater Capital Improvement Plan .................................................................................. 21 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report Figure 1-7: Proposed vs. Status Quo Wastewater Financial Plan ............................................................ 22 Figure 1-8: Proposed Wastewater Financial Plan – Projected Ending Balances ...................................... 23 Figure 1-9: Proposed Wastewater Financial Plan - Debt Coverage ......................................................... 24 Figure 1-10: Single Family Residential Bi-Monthly Wastewater Bill Impacts ............................................ 26 Figure 4-1: Water Capital Improvement Plan ............................................................................................ 44 Figure 4-2: Proposed Water Financial Plan - Debt Coverage ................................................................... 50 Figure 4-3: Proposed Water Financial Plan – Projected Ending Balances ............................................... 51 Figure 4-4: Proposed vs. Status Quo Water Financial Plan ...................................................................... 52 Figure 5-1: Wastewater Capital Improvement Plan ................................................................................ 101 Figure 5-2: Proposed Wastewater Financial Plan - Debt Coverage ....................................................... 108 Figure 5-3: Proposed Wastewater Financial Plan – Projected Ending Balances .................................... 109 Figure 5-4: Proposed vs. Status Quo Wastewater Financial Plan .......................................................... 110 Figure 2-1: Single Family Residential Bi-Monthly Water Bill Impacts (FY 2024) .................................... 128 Figure 2-2: Single Family Residential Bi-Monthly Wastewater Bill Impacts (FY 2024) ........................... 129 Appendices
Appendix A: Water Proposed Financial Plan 10-Year Pro Forma Appendix B: Wastewater Proposed Financial Plan 10-Year Pro Forma Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report

THIS PAGE INTENTIONALLY LEFT BLANK
Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 12

1. Executive Summary

1.1. Study Overview
Public water and wastewater utilities in California typically perform a cost of service analysis every five to ten years to ensure that customers are appropriately charged for service commensurate with the cost to provide service. The City of St. Helena (City) last conducted a water and wastewater cost of service study in 2016, which established proposed rates over a five-year period through Fiscal Year (FY) 2021-22. The City engaged Raftelis to conduct an updated water and wastewater cost of service study to establish an additional five-year schedule of water and wastewater rates. Proposed rates cannot be implemented until formally adopted by City Council after a public hearing, and absent a majority protest by parcels served by the City’s water and wastewater system. Proposition 218 requires that City customers be postmarked a notice of the proposed rates and their rights to protest no fewer than 45 days before the public hearing.

The major objectives of this study are to:
» Develop a ten-year financial plan that sufficiently funds the City’s water and wastewater operations and maintenance (O&M) expenses, debt service payments, and capital expenditures, while adequately funding reserves and achieving debt coverage requirements
» Conduct cost of service analyses that establish a nexus between the cost to serve water and wastewater customers and the rates charged, per Proposition 218 and industry standards » Review the City’s existing water and wastewater rate structures and recommend changes and rate alternatives to ensure that proposed rates achieve the financial and policy objectives of the agency to the greatest degree possible
» Develop a five-year schedule of water and wastewater rates that are fair, cost-justified, provide full revenue recovery, and align with Proposition 218
» Develop a five-year schedule of drought surcharge rates that consider the City’s Water Emergency Plan

1.2. Rate Study Process
This study was conducted using industry-standard principles outlined by the American Water Works Association’s Manual M1 and the Water Environment Federation’s Financing and Charges for Wastewater Systems. The overall process outlined below applies to the development of both water and wastewater rates.

1. Financial Plan: Develop cash flow projections for the Water and Wastewater Enterprise to determine the amount of revenue required from water and wastewater rates to fully recover the costs of providing service.

2. Cost of Service Analysis: Allocate total costs to system components, and then to various user classes, based on unique characteristics.

3. Rate Design: Develop rates to different customers classes and sub-classes, based on cost of service, that generate sufficient revenues to recover costs, and communicate policy preferences of the agency.

4. Administrative Record Preparation: Develop an administrative record (this study report) to document the underlying inputs, assumptions, analyses, and results of the rate study.

5. Rate Adoption: Proposed rates may be adopted by City Council only after holding a public hearing in accordance with Proposition 218 requirements.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 13

1.3. Proposed Water Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing water rates adequately fund the Water Enterprise’s various expenses over a ten-year planning period. Annual projections of revenues, O&M expenses, debt service payments, and capital expenditures through FY 2031-32 were developed with City staff. Raftelis projects that with no rate increases over the study period, the Water Enterprise’s reserves will fall below the target reserve policy and fail to meet minimum debt coverage in all years of the study period. Without revenue adjustments, fund balances are negative in every year of the study period and decrease greatly over time due to O&M and capital expenses. The exercise demonstrates a clear need for revenue adjustments (i.e. gross water rate revenue increases relative to existing rate revenues). Raftelis worked with City staff and the Water and Wastewater Rate Study Advisory Committee (RSAC) to develop the following proposed revenue adjustments over the five-year study period (see Table 1-1).

Table 1-1: Proposed Water Revenue Adjustments

A B C D E F
Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Effective Month Sept.1
1, 2023 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 2 Revenue Adjustments 28% 8% 8% 8% 8%
Key factors influencing the need for proposed revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to inflationary pressures. » Reduction in baseline water demand: Water sales are significantly lower relative to pre-drought years, resulting in lower baseline variable water rate revenues. » Planned capital expenditures: CIP project expenditures through FY 2031-32, including substantial repair and replacement (R&R) capital projects, total approximately $6.7M per year on average.

Figure 1-1 shows the proposed CIP financing plan over the study period. CIP is assumed to be funded by a mix of revenue bonds and rate revenue. The use of debt allows for lower rate increases over the long-term by financing significant capital reinvestment and repaying over a long time horizon. 1 Due to the implementation schedule, if adopted new rates will become effective September 1, 2023. However, all financial plan outputs in this report represent the full fiscal year (July 1 start).

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 14 Figure 1-1: Water Capital Improvement Plan
Figure 1-2 shows the proposed versus status quo Water Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and light blue solid lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP are represented by the various stacked bars. Revenue adjustments are required to generate additional revenue to recover O&M expenses and debt service payments over the study period while maintaining minimum debt coverage and reserve targets.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 15 Figure 1-2: Proposed vs. Status Quo Water Financial Plan Figure 1-3 shows the Water Enterprise’s projected fiscal year-end balance under the proposed financial plan.

The light blue bars indicate the projected ending balance on June 30 of each year. The existing reserve targets are represented by the solid blue and yellow lines. The Water Enterprise is projected to increase its reserves through the study period. With the proposed rate increases and future debt issuances, the Water Enterprise’s reserves are projected to achieve the existing reserve policy target at the end of the rate-setting period.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 16 Figure 1-3: Proposed Water Financial Plan – Projected Ending Balances Figure 1-4 shows projected debt coverage (dark blue line) relative to the debt coverage requirement (gray line) over the study period. Debt coverage is expected to decline in FY 2025-26 due to new debt issuances to finance capital project costs. This demonstrates the need for revenue adjustments early in the study period to ensure sufficient debt capacity with which to finance planned capital. Failure to meet debt service coverage results in a technical default, which without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance, or a denial of credit.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 17 Figure 1-4: Proposed Water Financial Plan – Projected Debt Coverage

1.4. Proposed Water Rates
The City’s existing water rate structure consists of fixed Water Service Charges (based on meter size), fixed Fireline Service Charges (based on fireline size), and variable Water Volume Rates (per hundred cubic feet [HCF] of water delivered). Raftelis worked closely with City staff and the RSAC to evaluate alternatives to the existing water rate structure. The following changes are proposed:
» Variable Rate Tiers: The study proposes a single volumetric rate structure for all customer classes from a single, seasonal uniform rate for all classes. Current and proposed bi-monthly tier definitions (volume allotted in each tier) are shown below in Table 1-2. The current bi-monthly structure reflects the City’s existing rate structure, which has been in effect since January 2020.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 18 Table 1-2: Proposed Changes to Tiers and Tier Allotments A B C
Line
Commodity Rates
($/HCF) Current Proposed
1 Tier 1 Off-Peak (Nov-Apr)
Peak (May-Oct)
0-11 HCF
2 Tier 2 12-15 HCF
3 Tier 3 >16 HCF
Table 1-3 shows proposed Water Service Charges, Fire Line Service Charges, and Volumetric Rates through FY 2027-28. All fixed charges are shown bi-monthly. Proposed Water Volumetric tiers are bi-monthly.

Proposed rates reflect base (non-shortage) conditions and new baseline supply and demand conditions.

Table 1-3: Proposed Five-Year Water Rate Schedule – Base Condition Rates

A B C D E F G
Line Description Current
Proposed
FY 2024
Proposed
FY 2025
Proposed
FY 2026
Proposed
FY 2027
Proposed
FY 2028
1 Bi-Monthly Fixed
Charges
2 Meter Size
3 5/8" $139.78 $135.50 $146.34 $158.05 $170.70 $184.36
4 3/4" $139.78 $135.50 $146.34 $158.05 $170.70 $184.36
5 SFR 1" $139.78 $135.50 $146.34 $158.05 $170.70 $184.36 6 1" $256.44 $288.70 $311.80 $336.75 $363.69 $392.79
7 1 1/2" $451.28 $544.05 $587.58 $634.59 $685.36 $740.19 8 2" $648.00 $850.46 $918.50 $991.98 $1,071.34 $1,157.05 9 3" $1,309.44 $1,820.76 $1,966.43 $2,123.75 $2,293.65 $2,477.15 10 4" $2,023.96 $3,250.68 $3,510.74 $3,791.60 $4,094.93 $4,422.53 11 6" $3,963.26 $7,182.95 $7,757.59 $8,378.20 $9,048.46 $9,772.34 12 13 Fireline Size
14 4" $26.66 $116.78 $126.13 $136.23 $147.13 $158.91
15 6" $77.46 $285.71 $308.57 $333.26 $359.93 $388.73
16 8" $165.06 $586.82 $633.77 $684.48 $739.24 $798.38
17 18 Volumetric Charges
19 All Classes
20 Tier 1 $6.50 $5.99 $6.47 $6.99 $7.55 $8.16
21 Tier 2 $7.23 $12.06 $13.03 $14.08 $15.21 $16.43
22 Tier 3 $12.91 $13.95 $15.07 $16.28 $17.59
Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 19

1.5. Proposed Water Shortage Surcharges
With the prior rate study, the City established a schedule of volumetric Water Shortage Surcharges during declared water emergencies. This is necessary to recover revenue shortfalls resulting from reduced water sales in times of shortage. Water shortage stages are currently declared based on criteria outlined in the City’s Water Emergency Plan with surcharge rates implemented in all phases of shortage (Phase I-III).

Raftelis recommends that the City update the existing Water Shortage Surcharges. The current system of Water Shortage Rates utilize a single uniform surcharge that does not vary by volume of use or shortage phase. Raftelis recommends that the City maintain the Water Shortage Surcharges as a tool during water emergencies. However, we recommend that the City update the methodology to align with the proposed water rate structure, as well as the projected revenue shortfall and severity of shortage at each stage. This update aligns with the water cost of service analysis which is explained in later sections of this report. The proposed Water Shortage Surcharges maintain the same three-tier structure and the same allotments in shortage and non-shortage conditions.

Table 1-4 shows proposed Water Shortage Surcharges for all water shortage stages from FY 2024 through FY 2028.

Table 1-4: Proposed Five-Year Schedule of Water Shortage Surcharges

A B C D
Line Drought Rates Phase I Phase II Phase III
1 FY 2024
2 Tier 1 $0.89 $2.99 $5.97
3 Tier 2 $1.79 $6.01 $12.02
4 Tier 3 $1.92 $6.43 $12.87
5 6 FY 2025
7 Tier 1 $0.97 $3.23 $6.45
8 Tier 2 $1.94 $6.50 $12.99
9 Tier 3 $2.08 $6.95 $13.90
10 11 FY 2026
12 Tier 1 $1.05 $3.49 $6.97
13 Tier 2 $2.10 $7.02 $14.03
14 Tier 3 $2.25 $7.51 $15.02
15 16 FY 2027
17 Tier 1 $1.14 $3.77 $7.53
18 Tier 2 $2.27 $7.59 $15.16
19 Tier 3 $2.43 $8.12 $16.23
20 21 FY 2028
22 Tier 1 $1.24 $4.08 $8.14
23 Tier 2 $2.46 $8.20 $16.38
24 Tier 3 $2.63 $8.77 $17.53
Figure 1-5 shows a sample bi-monthly water bill for a typical Single Family Residential (SFR) customer with a 5/8 inch water meter at varying levels of water use under both current rates and proposed FY 2023-24 rates.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 20 Figure 1-5: Single Family Residential Bi-Monthly Water Bill Impacts (FY 2024)

1.6. Proposed Wastewater Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing wastewater rates adequately fund the Wastewater Enterprise’s various expenses over the financial planning period. Projected operating and capital costs are accounted for in the financial plan analysis. Raftelis projects that with no rate increases over the five-year study period, the Wastewater Enterprise’s reserves will fall below the existing reserve policy and fail to meet its debt coverage requirement in each year of the study period. This demonstrates a need for revenue adjustments for the Wastewater Enterprise.

Raftelis worked with City staff and the RSAC to develop the following schedule of proposed revenue adjustments over the five-year study period (see Table 1-5).

Table 1-5: Proposed Wastewater Revenue Adjustments

A B C D E F
Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Effective Month Sept. 1, 2023 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 2 Revenue Adjustments 50% 4% 4% 4% 4%
Key factors influencing the need for proposed Wastewater Enterprise revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to inflationary pressures and the cost of staffing treatment facilities.
» Planned capital expenditures: CIP projects through FY 2027-28, including substantial repair and replacement (R&R) capital projects, total approximately $1.1M per year on average. » Reserve replenishment: the Wastewater Enterprise has reduced cash reserves during the past several fiscal years due to unforeseen operating costs as well as the completion of a significant capital project, which upgrades the wastewater treatment facilities.

Figure 1-6 shows the proposed CIP financing plan over the study period. CIP is assumed to be funded by a mix of revenue bonds, proceeds from the 2022 Measure H General Obligation (GO) bonds, cash reserves from future rate revenues.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 21 Figure 1-6: Wastewater Capital Improvement Plan
Figure 1-7 shows the proposed versus status quo Wastewater Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and light blue solid lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments and new debt issues are required to generate sufficient revenue to cover future O&M expenses, debt service payments, and cash reserves over the study period.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 22 Figure 1-7: Proposed vs. Status Quo Wastewater Financial Plan Figure 1-8 shows the Wastewater Enterprise’s projected fiscal year-end balance under the proposed financial plan. The light blue bars indicate the ending balance on June 30 of each fiscal year. The existing reserve targets are represented by the solid blue and yellow lines. The Wastewater Enterprise is projected to utilize its reserves during the study period to fund capital improvements and O&M costs. At the end of the financial planning horizon, the Wastewater Enterprise’s reserves are projected to meet the existing reserve policy target with the proposed rate increases and debt issuances.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 23 Figure 1-8: Proposed Wastewater Financial Plan – Projected Ending Balances Figure 1-9 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. Fluctuations in debt coverage over the study period are largely due to new debt service assumed to finance anticipated CIP project costs. Debt coverage remains above the requirement throughout the study period.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 24 Figure 1-9: Proposed Wastewater Financial Plan – Projected Debt Coverage

1.7. Proposed Wastewater Rates
The City’s wastewater rate structure consists of Fixed Service Charges and Variable Flow Charges for all customer classes. Residential customers are charged a base rate (Fixed Service Charge) and a volumetric rate (Variable Flow Charge) based on average winter consumption (AWC). Commercial customers are charged a Fixed Service Charge based on the size of the meter serving the connection and Variable Flow Charges based on billed water use. Multi-Family Residential (MFR) customers which include Multi-Dwelling apartments, condos, and mobile home parks, are charged base rates as commercial customers (by meter size) and volumetric flow rates as residential customers (AWC). Raftelis worked with City staff and the RSAC to evaluate any changes to the existing wastewater rate structure. The result of the evaluation maintains the current wastewater rate structure. Table 1-6 shows proposed wastewater rates through FY 2027-28.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 25 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 25 Table 1-6: Proposed Five-Year Wastewater Rate Schedule

A B C D E F G
Line Bi-Monthly Base Charges
Current Rates
Proposed FY
2024
Proposed FY
2025
Proposed FY
2026
Proposed FY
2027
Proposed FY
2028
1 Residential
2 Base Charge $127.35 $179.26 $186.44 $193.90 $201.66 $209.73 3 Use Charge (AWC) $5.58 $9.89 $10.29 $10.71 $11.14 $11.59 4 5 Non-Residential 6 Base Charge 7 5/8" $176.68 $250.51 $260.54 $270.97 $281.81 $293.09 8 1" $441.72 $567.57 $590.28 $613.90 $638.46 $664.00 9 1.5" $883.42 $1,096.00 $1,139.84 $1,185.44 $1,232.86 $1,282.18 10 2" $1,413.48 $1,730.12 $1,799.33 $1,871.31 $1,946.17 $2,024.02 11 3" $2,826.98 $3,738.16 $3,887.69 $4,043.20 $4,204.93 $4,373.13 12 4" $4,417.14 $6,697.37 $6,965.27 $7,243.89 $7,533.65 $7,835.00 13 6" $8,834.28 $14,835.22 $15,428.63 $16,045.78 $16,687.62 $17,355.13 14 15 Use Charge (per HCF) 16 Car Wash $3.86 $6.73 $7.00 $7.28 $7.58 $7.89 17 Religious Places/Community Centers $4.29 $7.28 $7.58 $7.89 $8.21 $8.54 18 Commercial $5.07 $8.42 $8.76 $9.12 $9.49 $9.87 19 Groceries and Mortuaries $13.62 $20.65 $21.48 $22.34 $23.24 $24.17 20 Laundry $4.42 $7.46 $7.76 $8.08 $8.41 $8.75 21 Mixed Retail $8.52 $13.50 $14.04 $14.61 $15.20 $15.81 22 Lodging with Food $10.22 $15.83 $16.47 $17.13 $17.82 $18.54 23 Lodging without Food $5.54 $9.00 $9.36 $9.74 $10.13 $10.54 24 Restaurant $13.50 $20.30 $21.12 $21.97 $22.85 $23.77 25 Napa Valley College $4.22 $7.18 $7.47 $7.77 $8.09 $8.42 26 Service Station $5.83 $9.55 $9.94 $10.34 $10.76 $11.20 27 Winery Pre-Treated $5.39 $8.87 $9.23 $9.60 $9.99 $10.39 28 Winery Non-Treated $23.75 $34.27 $35.65 $37.08 $38.57 $40.12

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 26 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 26 Figure 1-10 shows sample bi-monthly wastewater bills for SFR customers at varying levels of AWC under both current rates and proposed FY 2023-24 rates. Note that actual SFR customer impacts in FY 2023-24 may vary based on each customer’s water use characteristics during winter months versus individual months. The average AWC amongst City SFR wastewater customers is approximately 8 HCF of AWC.

Figure 1-10: Single Family Residential Bi-Monthly Wastewater Bill Impacts Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 27 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 27

2. Introduction

2.1. Agency Overview
The City of St. Helena’s (City) water and wastewater department provides water and wastewater service to a population of roughly 6,000 people through about 2,600 metered water connections and approximately 1,700 sewer connections. All of the City’s Wastewater customers are located within city limits.; however, the water system extends beyond City limits into areas that include Meadowood Napa Valley Resort, as well as the area between Chaix Lane and Zinfandel Lane along Main Street.

The water system consists of roughly 47 miles of active water distribution pipelines up to 24 inches in diameter, three main supply sources (Louis Stralla Water Treatment Plant (WTP), Stonebridge wells, and an interconnection with the City of Napa), five pressure zones, and six booster pump stations. The wastewater system consists of approximately 24 miles of active gravity sewer pipelines and two lift stations that flow to the Wastewater Treatment and Reclamation Plant (WWTRP).

2.2. Study Overview
Water and wastewater utilities in California typically perform a cost of service analysis every five to ten years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

The City last conducted a water and wastewater cost of service study in 2016, which established proposed rates over a five-year period through Fiscal Year (FY) 2021-22, which included updated drought rates to establish water shortage rates to recover sufficient rate revenue during periods of drought or other water supply shortages.

The City engaged Raftelis in 2021 to conduct a water and wastewater cost of service study to establish a proposed five-year schedule of water and wastewater rates through FY 2027-28. The results of the study are documented within this report. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing. Proposition 218 requires that The City Water customers must be mailed a public hearing notice detailing any proposed rate changes no fewer than 45 days before the public hearing.

The notice includes a customer’s right to protest the rate proposal.

Study Objectives
The major objectives of this study are to:
» Develop a ten-year financial plan that sufficiently funds the City’s water and wastewater operations and maintenance (O&M) expenses, debt service payments, and capital expenditures, while adequately funding reserves and achieving debt coverage requirements.
» Conduct cost of service analyses that establish a nexus between the cost to serve water and wastewater customers and the rates charged, per Proposition 218 and industry standards. » Review the City’s existing water and wastewater rate structures and recommend changes and rate alternatives to ensure that proposed rates achieve the financial and policy objectives of the agency to the greatest degree possible.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 28 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 28 » Develop a five-year schedule of water and wastewater rates that are fair, cost-justified, provide full revenue recovery, and align with Proposition 218.
» Develop a five-year schedule of drought surcharge rates that consider the City’s Water Emergency Plan.

Key Changes Since the Prior Rate Studies
Water Enterprise
Reduction in baseline water demand: Since the prior cost of service study was conducted in 2016, The City’s water supplies and demands have undergone substantial changes. The prior rate study assumed baseline water demand of approximately 1,500 acre-feet per year (AFY). Historical demands, prior to the 2016 study were even higher. Since 2016 the City had actively sought conservation from customers during a multi-year water shortage emergency and implemented water allocations, through the declaration of the Phase II Water Emergency, for the first time in calendar year 2021. Total water demand in FY 2021-22 was approximately 30 percent lower than in FY 2018-19. After analyses of historical data and significant discussion with City staff and the RSAC, baseline water demand for this study is assumed at approximately 1,300 AFY. The City collects approximately 60 percent of its water rate revenues through Water Volume Rates charged per unit of water delivered and 35 percent of its wastewater rate revenues through Flow Charges based on water use.

Reductions in baseline water demands results in fewer units of water with which to recover the total costs of the utility. Proposed water and wastewater rates are designed to reflect new normal water demands.

Capital Reinvestment: The City’s water utility has many CIPs that are necessary to maintain a high level of service, meet all regulatory requirements, ensure the availability and reliability of both local and imported water supplies, and prevent emergencies from infrastructure failure. Raftelis and the RSAC worked closely with the City’s Public Works department to incorporate the capital program into the rate study and execute these projects over the next ten or more years. Historically the City’s water utility has executed on average $1 million in capital projects each year. In this study the utility aims to execute over $6 million in annual capital projects.

Reserve Funding: Cash reserves mitigate risk, provide for working capital, can improve future borrowing terms, and ensure reliable service if an emergency were to occur on the system. Reserves have been utilized over the past several years to offset unexpected operating costs and mitigate the impacts of drought and reduced revenues. Replenishing reserves to adopted levels over the long-term is an added cost to the system.

Wastewater Enterprise
Operating Costs: Just like the Water utility, the wastewater enterprise has experienced increased costs due to inflation as well as unexpected operating costs in staffing the WWTP on a temporary, contractor basis. These increases reduce net cash to reserves and net operating revenues to achieve debt coverage (or conversely reducing future debt capacity).

Capital Projects and Cash Reserve Balance: Wastewater Treatment Plant Phase I Upgrades to produce recycled water is well over the original budget. With proceeds from the USDA loan finite, the difference, approximately $3 million, reduces the utility’s cash balance. Construction cost inflation (CCI) and supply chain disruptions experienced in FY 2021 and 2022 makes recent projects more expensive in absolute dollars, relative to their budgeted values.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 29 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 29 Reduction in Rate Revenue Base: In this study, assumed wastewater flows from the City’s largest wastewater connection is reduced by greater than 95% from the prior rate study. This is due to wastewater being captured and treated onsite. Additional other changes and updates to the wastewater connection and flow generation assumptions results in adjustments to the revenue generated with existing rates.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 30 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 30

3. Legal Requirements and
Rate Setting Methodology

3.1. Legal Requirements
California Constitution – Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water and wastewater service are as follows:

1. A property-related charge (which includes water or wastewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of the property.

5. A written notice of the proposed charge shall be mailed to both the customer of record and owner of record of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.

As stated in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges:

Manual of Water Supply Practices – M1 Seventh Edition (Manual M1), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Raftelis follows industry standard rate setting methodologies set forth by the AWWA’s Manual M1 to ensure the water cost of service analysis presented in this study meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services on a parcel basis. The methodology in the Manual M1 is a nationally recognized industry ratemaking standard which courts have recognized as consistent with Proposition 218. Similarly, the wastewater cost of service presented in this study was conducted in accordance with principles established by the Water Environment Federation (WEF) and described in Financing and Charges for Wastewater Systems.

California Constitution Article X, Section 2
California Constitution Article X, Section 2 mandates that water resources be put to beneficial use and that the waste or unreasonable use of water be prevented. Section 106 of the Water Code declares that the highest priority use of water is for domestic purposes, with Non-Residential Irrigation the next highest priority. Thus, management of water resources is part of the property-related service provided by public water suppliers to ensure the resource is available over time. The City is proposing to implement inclining tiered (also known as inclining block) water rates to incentivize residential customers to conserve water. The inclining tiered rates must be based on the proportionate costs incurred to provide water to customers to achieve compliance with Proposition 218. “Inclining” tiered rate structures (which are synonymous with “increasing” tier rate Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 31 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 31 structures and “tiered” rates), when properly designed, allow a water utility to send conservation price signals to customers. Due to heightened interest in water conservation and efficiency of water use, tiered water rates have gained widespread use, especially in relatively water-scarce regions like California. Tiered rates meet the requirements of Proposition 218 as long as they reasonably reflect the proportionate cost of providing service for each tier.

3.2. Rate-Setting Methodology
This study was conducted using industry-standard principles outlined by the AWWA’s Manual M1 and WEF’s Financing and Charges for Wastewater Systems. The process and approach Raftelis utilized in the study to determine rates is informed by The City Water’s policy objectives, the current system of rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plans, cost of service analyses, and rate design process follows five key steps, outlined below, to determine proposed rates that fulfill The City Water’s objectives, meet industry standards, and comply with relevant regulations. The overall process outlined below applies to the cost of service analyses for both water and wastewater.

1. Financial Plan: The first study step is to develop a multi-year financial plan that projects the Water and Wastewater Enterprises’ revenues, expenses, capital project financing, annual debt service, and reserve funding. The financial plan is used to determine revenue adjustments needed to recover adequate revenues to fund expenses and reserves.

2. Revenue Requirement Determination: After completing the financial plan, the rate-making process begins with the determination of the revenue requirement for the test year, also known as the cost-of service year. The test year for this study is FY 2023-24. The revenue requirement should sufficiently fund the Water and Wastewater Enterprises’ operating costs, annual debt service (including coverage requirements), capital expenditures, and reserve funding needs.

3. Cost of Service Analysis: The annual cost of providing water or wastewater service (i.e., the revenue requirement) is then distributed to customer classes commensurate with their use of and burden on the system. A cost of service analysis involves the following steps:
» Functionalize costs – the different components of the revenue requirement are categorized into functions such as supply, transmission, storage, customer service, etc. (for water) and collection, treatment, customer, etc. (for wastewater).
» Allocate to cost causation components – the functionalized costs are then allocated to cost causation components such as supply, base delivery, peaking, etc. (for water) and flow, strength, etc. (for wastewater).
» Develop unit costs – unit costs for each cost causation component are determined using units of service. » Distribute cost components – the cost components are allocated to each customer class and tier using the unit costs in proportion to their demand and burden on the system.

A water cost of service analysis considers both the average water demand and peak demand. Peaking, or extracapacity, costs are incurred during periods of peak consumption, most often coinciding with summer water use. There are additional capacity-related costs associated with designing, constructing, operating, maintaining, and replacing facilities to meet peak demand. Patterns of use impose additional costs on a water utility and are used to determine the cost burden on peaking-related facilities. Similarly, a wastewater cost of service analysis considers the amount of wastewater treatment plant influent contributed by each customer class in order to account for customer differences in the quantity and strength of wastewater discharges.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 32 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 32

4. Rate Design: After allocating the revenue requirement to each customer class, the rate design and calculation process can begin. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should support and optimize the City Water’s Policy Objectives. Rates also act as a public information tool in communicating policy objectives to customers. This process also includes a bill impact analysis.

5. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop the administrative record in conjunction with the rate adoption process. This report serves as the administrative record for this study. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions:
maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 33 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 33

4. Water Rate Study

4.1. Key Inputs and Assumptions
Raftelis developed a water rate model in Microsoft Excel to project financial calculations over the next ten fiscal years with projections shown in this report through the five-year rate-setting period of FY 2027-28 (i.e., the “study period”). The City’s fiscal year spans from July 1 through June 30. Projections in future years were generally made based on actual or estimated data for FY 2021-22 and/or budgeted data for FY 2022-23 using key assumptions outlined below. Assumptions were discussed with, and reviewed by, City staff to ensure that the City water system’s unique characteristics are accurately accounted for. Model inputs and assumptions which underly the long-range financial plan were discussed at length with the RSAC over multiple meetings. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

4.1.1. Current Water Rates
Table 4-1 shows the rates currently in effect in FY 2022-23, which were developed during the prior rate study in 2016. Customers are currently billed bi-monthly for two primary charges: 1) Water Service Charges and 2) Water Volume Rates per hundred cubic feet (HCF)2
of water delivered. The Water Service Charge is a fixed bimonthly charge that varies based on meter size. Additionally, customers with private fire lines are subject to a fixed bi-monthly Fire Line Service Charge. All customer classes are charged a fixed charge based on meter size that is billed bi-monthly. All customer classes are also charged a Water Volume Rate (volumetric charge) per HCF that is based on a peak or off peak and drought or non-drought basis. 2 One HCF equals approximately 748 gallons.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 34 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 34 Table 4-1: Current Water Rates
A B
Line Description Current
1 Fixed Charges
2 Meter Size
3 5/8" $139.78
4 3/4" $139.78
5 SFR 1" $139.78
6 1" $256.44
7 1 1/2" $451.28
8 2" $648.00
9 3" $1,309.44
10 4" $2,023.96
11 6" $3,963.26
12 13 Fireline Size
14 4" & smaller $26.66
15 6" $77.46
16 8" $165.06
17 18 Volumetric Charges
19 All Classes
20 Treated Variable Charge (Non-Drought)
21 Off-Peak $6.50
22 Peak $7.23
23 24 Treated Variable Charge (Drought)
25 Off-Peak $6.87
26 Peak $7.63
Uniform current peak and off-peak tiers are defined below in Table 4-2.

Table 4-2: Current Structure for Water Volume Rates
A B
Line Water Customer Tiers All Customer Classes
1 Peak May - October
2 Off Peak November – April
Some water utilities include elevation electricity surcharges for customer parcels in elevated zones, but only if warranted by the water system’s design, if the costs applicable to the elevated zones can feasibly be calculated and assigned with relative certainty and consistent with cost of service principles, and if the relative differential costs are not outweighed by the administrative costs of evaluating and administering the elevation surcharge. Most utilities in California do not have these surcharges due to their complexity. City Water’s existing water rate structure does not include electricity surcharges for the City Water’s elevated distribution zones and we do not recommend that they be added for this study period. Raftelis reviewed the issue with Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 35 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 35 City staff, the RSAC, and City Council and confirmed that the amount of revenue that would be recovered through elevation surcharges is immaterial to water rates, while significantly impacting a subset of customers and creating more administration for the City enterprise.

4.1.2. Water Enterprise Financial Assumptions
Inflationary assumptions shown in Table 4-3 are used to escalate projected non-rate revenues and operations and maintenance (O&M) expenses beyond FY 2022-23. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI), with an expectation that inflation remains elevated through FY 2026. Similarly, capital inflation is based on the long-term average of the Engineering News-Record’s (ENR) Construction Cost Index (CCI). The capital inflation factor is used to adjust uninflated capital project cost estimates provided to Raftelis by City staff. Salary and benefit inflationary increases were provided by the City Water and Finance staff, as water utility personnel cost increases are typically agency-specific. The purchased water factor reflects a known escalator within the City’s water supply agreement with the City of Napa. All other O&M expense inflationary assumptions were developed by Raftelis based on professional judgement, experience with similar agencies, and after discussions with City staff and the RSAC.

Table 4-3: Water Inflationary Assumptions

A B C D E F
Line Inflationary Categories FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Revenue Inflation
2 Miscellaneous Revenues 0.0% 0.0% 0.0% 0.0% 0.0%
3 Reserve Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0%
4 5 Expense Inflation
6 General 5.0% 4.2% 3.5% 2.8% 2.8%
7 Salary 7.0% 7.0% 5.0% 5.0% 5.0%
8 Benefits 6.0% 6.0% 6.0% 6.0% 6.0%
9 Supplies 5.0% 4.2% 3.5% 2.8% 2.8%
10 Utilities 5.0% 5.0% 5.0% 5.0% 5.0%
11 Purchased Water 6.6% 6.6% 3.0% 3.0% 3.0%
12 Capital 5.0% 4.4% 3.8% 3.2% 3.2%

4.1.3. Projected Water Service Connections
Water connection growth projections are necessary to estimate water demand and rate revenues over the study period. Raftelis relied on information within the City’s General Plan and projected housing units over the longterm. An assumption of 10 SFR units and 8 MFR dwelling units per year is translated into percentages relative to the existing connection base. Growth assumptions in Table 4-4 are applied to the respective customer connection types to project the number of water meters and fire lines in each year over the study period (Table 4-5).

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 36 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 36 Table 4-4: Projected New Water Connection Growth

A B C D E F G
Line Account Growth FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 SFR 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
2 MFR 0.9% 0.9% 0.9% 0.9% 0.9% 0.9%
3 Commercial 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
4 Industrial 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
5 Landscape 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
6 Raw 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
7 Fire 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Table 4-5: Count of Water Connections

A B C D E F G H
Line
Description Actual FY
2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
1 Number of
Water Meters
2 5/8" 2,002 2,011 2,020 2,029 2,038 2,047 2,056
3 3/4" 35 35 35 35 36 36 36
4 SFR 1" 261 262 263 265 266 267 269
5 1" 123 123 124 124 125 125 126
6 1 1/2" 70 70 71 71 71 71 72
7 2" 63 63 63 63 64 64 64
8 3" 8 8 8 8 8 8 8
9 4" 11 11 11 11 11 11 11
10 6" 13 13 13 13 13 13 13
11 8" 0 0 0 0 0 0 0
12 Total 2,586 2,597 2,608 2,620 2,631 2,642 2,654
13 14
Number of
Fire Lines
15 4" 57 57 57 57 57 57 57
16 6" 29 29 29 29 29 29 29
17 8" 15 15 15 15 15 15 15
18 Total 101 101 101 101 101 101 101

4.1.4. Projected Water Sales
City staff provided Raftelis with total annual water use data by customer class for FY 2018-19 through FY 2021-

22. Raftelis worked closely with City staff and the RSAC to develop water use projections over the study period.

Water demand projections depend on two key assumptions: new connection growth and water demand per connection. Beginning in FY 2023, annual water use is projected at the customer class level by increasing prior year water use based on both assumed connection growth and water demand per connection. Table 4-6 shows projected water use by customer class over the study period based on the current water rate structure. Line 1 shows the water use demand factor used to increase, decrease, or maintain water usage projections from the previous year. An analysis of historical water demand was conducted to help inform new baseline water Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 37 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 37 demand expectations for normal conditions. Historically, per capita water demands were higher and in the past 10 years the City has experienced two multi-year droughts, Covid-19 disruptions, major wildfires, and a local water emergency in which water allocations were implemented for the first time. Raftelis relied on FY 2019 as the last “normal” condition year and blended historical demands, recently witnessed rebounds in demands, and conservative projections to arrive at the baseline demand of 1,300 AFY. For context, the prior rate study baseline water demand was estimated at 1,500 AFY while the lowest level of demand in FY 2022 was around 1,000 AFY.

Table 4-6: Projected Water Use Under Existing Rate Structure – Baseline Demand Conditions

A B C D E F G H
Line Description
Actual
FY 2022
Estimated
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
1 Demand
Factor
Actual
Demand
Estimated
Demand 115% 100% 100% 100% 100%
2 3 Total Usage
4 SFR 165,016 189,768 219,274 220,319 221,369 222,424 223,484 5 MFR 58,803 67,623 78,431 79,100 79,775 80,456 81,143
6 Commercial 100,020 115,023 132,276 132,276 132,276 132,276 132,276 7 Industrial 88,441 101,707 116,963 116,963 116,963 116,963 116,963 8 Fire 184 212 243 243 243 243 243
9 Landscape 9,264 10,654 12,252 12,252 12,252 12,252 12,252 10 Raw 4,379 5,036 5,791 5,791 5,791 5,791 5,791
11 Total Usage
(HCF) 426,107 490,023 565,230 566,945 568,670 570,406 572,153 12 Total Usage
(AF) 978 1,125 1,298 1,302 1,305 1,309 1,313

4.2. Financial Plan
Section 4.2 details the development of the proposed Water Enterprise financial plan for the City over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding FY 2032. For formatting purposes, most tables in this section are shown through FY 2028, the end of the five-year rate setting period. The overall purpose of the financial plan is to determine annual water rate revenues required to achieve sufficient cash flow, maintain adequate reserves, and meet debt coverage requirements in every year of the plan.

4.2.1. Water Enterprise Revenue Under Current Rates
The Water Enterprise’s revenue sources consist of water rates, miscellaneous fees, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current FY 2021-22 water rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any water rate increases. This status quo scenario provides a baseline from which Raftelis evaluates the need for revenue adjustments (i.e., gross rate revenue increases).

4.2.1.1. Calculated Water Rate Revenues
Raftelis projects annual water rate revenues from Water Service Charges, Fire Line Service Charges, and Water Volume Rates over the study period based on current FY 2022 water rates (from Table 4-1), projected number Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 38 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 38 of water meters/private fire lines (from Table 4-5), and projected annual water use (from Table 4-6). Table 4-7 shows projected Water Service Charge and Fire Line Service Charge revenues under current rates over the study period, calculated as follows:

Fixed Charge Revenue = [ FY 2021-22 bi-monthly charge] × [Number of connections] × [6 Bills per year] Table 4-7: Projected Fixed Charge Revenue from Existing Rates

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Water Meters
2 5/8" $1,686,496 $1,693,992 $1,701,525 $1,709,097 $1,716,706 $1,724,354 3 3/4" $29,458 $29,564 $29,669 $29,776 $29,883 $29,990
4 SFR 1" $219,939 $220,987 $222,040 $223,098 $224,162 $225,230 5 1" $189,896 $190,545 $191,200 $191,860 $192,526 $193,197 6 1 1/2" $190,227 $190,921 $191,621 $192,325 $193,036 $193,751 7 2" $245,490 $246,041 $246,596 $247,155 $247,718 $248,285 8 3" $62,987 $63,123 $63,259 $63,397 $63,535 $63,675
9 4" $133,743 $133,906 $134,069 $134,234 $134,401 $134,568 10 6" $309,654 $310,177 $310,704 $311,236 $311,771 $312,311 11 8" $0 $0 $0 $0 $0 $0
12 Total $3,067,890 $3,079,254 $3,090,683 $3,102,177 $3,113,736 $3,125,361 13 14 Fire Lines
15 4" $9,118 $9,118 $9,118 $9,118 $9,118 $9,118
16 6" $13,478 $13,478 $13,478 $13,478 $13,478 $13,478
17 8" $14,855 $14,855 $14,855 $14,855 $14,855 $14,855
18 Total $37,451 $37,451 $37,451 $37,451 $37,451 $37,451 19 20 Total $3,105,341 $3,116,705 $3,128,134 $3,139,628 $3,151,187 $3,162,812 Table 4-8 shows projected Water Volume rate revenue, by class under current rates over the study period, calculated as follows:

Water Volume Rate Revenue = [ FY 2022 rate per HCF] × [Annual Water Use in HCF] Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 39 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 39 Table 4-8: Projected Commodity Charge Revenues Under Current Water Rates

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 SFR $1,400,713 $1,618,497 $1,626,210 $1,633,961 $1,641,748 $1,649,572 2 MFR $494,742 $573,810 $578,707 $583,647 $588,629 $593,653 3 Commercial $842,801 $969,221 $969,221 $969,221 $969,221 $969,221 4 Industrial $743,835 $855,411 $855,411 $855,411 $855,411 $855,411 5 Fire $1,536 $1,766 $1,766 $1,766 $1,766 $1,766
6 Landscape $79,493 $91,416 $91,416 $91,416 $91,416 $91,416 7 Total $3,563,120 $4,110,121 $4,122,732 $4,135,422 $4,148,191 $4,161,040 Table 4-9 shows additional miscellaneous rate revenue projections associated with raw water customers. Raw water contract rates are outside of the scope of this rate study and are therefore not included with other rate revenues.

Table 4-9: Projected Raw Water Rate Revenues

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 NA NVC Irrigation In Field $804.75 $851.00 $897.25 $943.50 $989.75 $1,036.00 2 2805 Spring Mtn Rd $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 3 ELM. Pumphouse $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
4 NA Stonebridge Irrigation Pope Street $2,998.02 $3,170.32 $3,342.62 $3,514.92 $3,687.22 $3,859.52 5 Elmhurst Pump Station $0.13 $0.14 $0.14 $0.14 $0.15 $0.15 6 NA Wappo Park $7.83 $9.34 $10.82 $12.39 $14.07 $15.85 7 Total Raw Commodity Revenue $3,811 $4,031 $4,251 $4,471 $4,691 $4,912

4.2.1.2. Other Water Revenues
Table 4-10 shows all other Water revenues. All FY 2023 other revenues are based on the City’s FY 2023 budget and escalated annually by the miscellaneous inflation rate (from Table 4-3). Interest revenue is estimated in the financial plan model beginning in FY 2024 based on projected fund balances and the assumed interest rate (from Table 4-3).

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 40 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 40 Table 4-10: Other Water Enterprise Revenues

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Other Operating Revenue
2 Engineering Fees $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 3 Raw Water Permit Fees $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 4 Backflow Testing & Insp Fees $150 $150 $150 $150 $150 $150 5 Other Revenue $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 6 Finance Charges $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 7 Water Meter Install Fee $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 8 CARE Program ($27,000) $0 $0 $0 $0 $0
9 10 Non-Operating Revenues
11 Investment Earnings $50,000 $25,358 $42,293 $57,362 $71,696 $92,637 12 13 Water Impact Fee Revenues
14 Investment Earnings $1,779 $2,115 $2,455 $2,798 $3,145 $3,495 15 Other Revenue $18,164 $18,164 $18,164 $18,164 $18,164 $18,164 16 Water Impact Fees $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 17 18 Total Other Revenue $92,093 $94,787 $112,062 $127,474 $142,155 $163,446

4.2.1.3. Summary of Projected Water Revenues
Table 4-11 shows a summary of all projected Water revenues under current rates over the study period. This includes all projected revenues shown in Table 4-7 through Table 4-10. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 4-11: Summary of Projected Water Enterprise Revenues Under Current Rates

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Fixed Revenue $3,105,341 $3,116,705 $3,128,134 $3,139,628 $3,151,187 $3,162,812 2 Commodity
Revenue $3,563,120 $4,110,121 $4,122,732 $4,135,422 $4,148,191 $4,161,040 3 Misc Revenue $3,811 $4,031 $4,251 $4,471 $4,691 $4,912 4 Other Revenue $92,093 $94,787 $112,062 $127,474 $142,155 $163,446 5 Total Revenue $6,764,364 $7,325,644 $7,367,180 $7,406,995 $7,446,225 $7,492,209 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 41 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 41

4.2.2. Water Operations & Maintenance Expenses
City staff provided the adopted Water Enterprise O&M expense budget for FY 2023 as well as estimates on any temporary/one-time expenses. Raftelis adjusts future year estimates using inflationary factors (from Table 4-3).

Table 4-12 shows a summary of all Water Enterprise O&M expenses over the rate-setting period.

Table 4-12: Projected Water Enterprise O&M Expenses

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Operating Expenses
2 Non Departmental $260,342 $276,476 $293,569 $310,377 $328,112 $346,871 3 Council $21,927 $23,270 $24,695 $26,145 $27,682 $29,309 4 Administration $299,603 $319,487 $340,621 $358,514 $377,285 $397,052 5 Finance $593,299 $630,162 $668,011 $700,425 $733,195 $767,596 6 Attorney $159,500 $170,665 $182,612 $191,742 $201,329 $211,396 7 Public Works
8 Administration $857,395 $912,977 $971,107 $1,019,525 $1,069,365 $1,121,735 9 Public Buildings $31,400 $33,018 $34,477 $35,725 $36,788 $37,885 10 Street Maintenance $33,400 $35,070 $36,543 $37,822 $38,881 $39,970 11 Water Distribution $844,304 $914,912 $966,784 $1,013,053 $1,059,504 $1,108,237 12 Water Treatment $2,468,107 $2,934,965 $3,118,131 $3,232,809 $3,348,704 $3,469,096 13 Temp/Part Time $1,614,000 $0 $0 $0 $0 $0
14 Total $7,183,277 $6,251,002 $6,636,549 $6,926,137 $7,220,845 $7,529,145

4.2.3. Water Debt
Table 4-13 shows the projected debt service obligations for Water over the study period. Existing debt service consists of the 2012B Installment Agreement and Loan Agreement (Direct Borrowing). Proposed Water Enterprise debt service is also shown. Note that proposed debt service represents preliminary projections for planning purposes based on the proposed financial plan and best information available at the time of this study.

The timing, magnitude, or financing assumptions are for planning purposes only and should not be construed as municipal advice.

Table 4-13: Water Debt Service

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Existing Debt Service
2 2012B Installment Agreement - Water $410,517 $410,361 $409,969 $412,552 $409,617 $410,009 3 Loan Agreement (Direct Borrowing) $540,160 $541,053 $541,178 $540,305 $538,551 $541,432 4 5 Proposed Debt Service $0 $613,350 $613,350 $1,956,877 $1,956,877 $1,956,877 6 7 Total Debt Service $950,677 $1,564,764 $1,564,497 $2,909,734 $2,905,045 $2,908,318 Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 42 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 42

4.2.4. Water Enterprise Capital Improvement Plan
Table 4-14 shows the City’s planned capital improvement plan (CIP) for the Water utility. All values account for assumed CCI. Significant projects include Napa Intertie pipeline and pump station projects, the Bell Canyon Intake Tower replacement, and Water Treatment Plant Transmission Main replacement. With the exception of the Water Main Annual Replacement Program Allowance funded with GO Bond proceeds, all other projects are assumed to be rate funded with future cash and revenue bond proceeds.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 43 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 43 Table 4-14: Water Capital Improvement Plan

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 W-109 Bell Canyon Intake Tower Replacement $0 $0 $361,004 $3,372,495 $0 $0 2 W-80 Dwyer Road Booster Pump Station $0 $0 $986,580 $0 $0 $0 3 W18-113 SCADA Improvements - Offsite Communications $0 $0 $175,392 $364,114 $375,765 $0 4 W-86 Spring Mountain Pressure Zone Improvements (Holmes Tank Upgrade) $0 $0 $0 $346,470 $1,609,005 $1,660,493 5 PWTM-1 Napa Intertie Pipeline Replacement (Breeze Inactive) $0 $0 $1,252,957 $2,601,138 $2,684,374 $0 6 Smart Water Meters $0 $0 $431,903 $896,630 $925,322 $0 7 W21-01 Kearney & Andrea Water Main Replacement $0 $919,490 $0 $0 $0 $0 8 W-101 Rehabilitate Tank 2 at Lower Reservoir $0 $987,000 $0 $0 $0 $0 9 W18-111 WTP Condition Assessment $0 $210,000 $0 $0 $0 $0 10 Napa Intertie Pump Station Replacement (Construction) $0 $0 $0 $227,571 $117,427 $605,922 11 Napa Intertie Pump Station Replacement (DESIGN) $0 $420,000 $2,082,780 $0 $0 $0 12 Water Treatment Plant (Water Treatment Plant Rehabilitation) $0 $0 $0 $0 $0 $0 13 PWTM-2 Water Treatment Plant Transmission Main Replacement $0 $0 $1,743,835 $3,620,201 $3,736,048 $0 14 W18-118 Water Main Annual Replacement Program Allowance $0 $302,400 $315,706 $327,702 $338,189 $349,011 15 PWRR-1 Yr 6-10 - Water Main Annual Replacement Program allowance (not funded by GO Bond) $0 $0 $0 $0 $0 $0 16 PWRR-1 Future Allowance for Pipeline R/R (Years11-15) $0 $0 $0 $0 $0 $0 17 PFAS Sampling Project $0 $26,250 $0 $0 $0 $0 18 Disinfection By Products Project $0 $52,500 $0 $0 $379,288 $391,425 19 Risk and Resilience Assessment Report dated January 2022 - Additional recommended items $0 $78,750 $82,215 $0 $0 $0 20 Cyber-Security Implementation $0 $26,250 $27,405 $0 $0 $0 21 Asset Management Program Development $0 $0 $0 $56,893 $0 $0 22 Asset Management Software Assessment & Optimization planning $0 $0 $0 $17,068 $0 $0 23 CMMS Purchase & Setup $0 $0 $0 $0 $58,713 $0 24 ArCommercialIS Purchase & Setup $0 $36,750 $16,443 $0 $0 $0 25 Allocated RW CIP $0 $262,500 $0 $0 $0 $0 26 Total CIP $0 $3,321,890 $7,476,219 $11,830,282 $10,224,132 $3,006,851

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 44 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 44 Table 4-15 shows the assumed funding sources for Water CIP projects over the study period. Proposed debt proceeds are assumed to fund most of the Water CIP projects over the planning period to minimize increases to rates. All remaining CIP not funded by existing/remaining bond proceeds, or future revenue bonds, is assumed to be funded by cash reserves generated from rates (i.e. pay-as-you-go funding). Figure 4-1 shows a summary of total Water Enterprise CIP expenditures by funding source over the study period.

Table 4-15: Water Capital Improvement Plan Proposed Funding

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Go-Bond Funded $0 $302,400 $315,706 $327,702 $338,189 $349,011 2 Rate Funded $0 $0 $0 $0 $0 $726,366
3 Bond Funded $0 $3,019,490 $7,160,513 $11,502,580 $9,885,943 $1,931,474 4 Total Funded CIP $0 $3,321,890 $7,476,219 $11,830,282 $10,224,132 $3,006,851 Figure 4-1: Water Capital Improvement Plan
Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 45 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 45

4.2.5. Water Financial Policies
Required Debt Coverage
The Water utility is required to meet debt service coverage requirements on its outstanding water revenue bonds. The required minimum debt coverage ratio is 1.20, meaning that the utility’s net operating revenues (i.e. total operating revenues less operating expenses) must achieve at least 1.20 times the amount of annual debt service. Failure to meet debt service coverage results in a technical default, which without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance, or even denial of credit.

Reserve Targets
Adequate cash reserves are required to meet operating, capital, and debt service requirements. Operating reserves provide funds to meet ongoing cash flow requirements related to operating expenses. The current reserve target is equal to 14 months of annual operating expenses (which includes both O&M and debt service), and the minimum reserve target is equal to 10 months of annual O&M expenses. Table 4-16 shows projected operating and capital reserve targets over the study period based on the policies outlined above. No changes are proposed to the City’s existing wastewater reserve policies.

Table 4-16: Projected Water Reserve Targets

A B C D E F G
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Reserve – 14 Months $9,489,613 $9,118,393 $9,567,887 $11,475,183 $11,813,539 $12,177,040 2 Reserve – 10 Months $6,778,295 $6,513,138 $6,834,205 $8,196,559 $8,438,242 $8,697,886

4.2.6. Status Quo Water Financial Plan
Raftelis develops a status quo (i.e., current rate revenues) financial plan to evaluate the need for future revenue adjustments (i.e. increases to gross rate revenues). The status quo financial plan assumes that current FY 2023 rates remain unchanged over the study period.

Table 4-17 combines projected Fund 561 revenues (from Table 4-11), O&M expenses (from Table 4-12), and debt service (from Table 4-13) to generate operating cash flow projections under the status quo. In the absence of any revenue adjustments, the Water Operating Fund (Fund 561) will fail to generate sufficient revenue to recover O&M expenses and debt service, and net cash generation becomes increasingly negative in subsequent years.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 46 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 46 Table 4-17: Water Operating Cash Flow (Fund 561)– Status Quo Financial Plan A
B
C
D
E
F
G
H
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Revenues
2 Revenue from Existing Rates $6,672,271 $7,230,857 $7,255,117 $7,279,521 $7,304,070 $7,328,764 3 4 Revenue Adjustments Adjustment
5 FY 2023 0.0% $0 $0 $0 $0 $0 $0 6 FY 2024 0.0% $0 $0 $0 $0 $0 7 FY 2025 0.0% $0 $0 $0 $0 8 FY 2026 0.0% $0 $0 $0 9 FY 2027 0.0% $0 $0 10 FY 2028 0.0% $0 11 Revenue Adjustment Totals $0 $0 $0 $0 $0 $0 12 Total Revenues from Rates $6,672,271 $7,230,857 $7,255,117 $7,279,521 $7,304,070 $7,328,764 13 Other Operating Revenue $7,150 $34,150 $34,150 $34,150 $34,150 $34,150 14 Investment Income $50,000 $15,234 $8,074 $0 $0 $0 15 Total - Revenues $6,729,421 $7,280,241 $7,297,341 $7,313,671 $7,338,220 $7,362,914 16 17 Operating Expenses 18 Operating Expenses $5,569,277 $6,251,002 $6,636,549 $6,926,137 $7,220,845 $7,529,145 19 One Time Expenses $1,614,000 $0 $0 $0 $0 $0 20 Total - Operating Expenses $7,183,277 $6,251,002 $6,636,549 $6,926,137 $7,220,845 $7,529,145 21 22 Net Revenue -$453,856 $1,029,239 $660,792 $387,534 $117,374 -$166,231 23 24 Existing Debt Service $950,677 $951,414 $951,147 $952,857 $948,168 $951,441 25 Proposed Debt Service $0 $613,350 $613,350 $1,956,877 $1,956,877 $1,956,877 26 Annual Debt Service $950,677 $1,564,764 $1,564,497 $2,909,734 $2,905,045 $2,908,318 27 28 Net Cash After Debt Service -$1,404,533 -$535,524 -$903,704 -$2,522,200 -$2,787,671 -$3,074,549 29 30 Debt Service Coverage
31 Calculated Coverage -0.48 0.66 0.42 0.13 0.04 -0.06 32 Target Coverage 1.20 1.20 1.20 1.20 1.20 1.20

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 47 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 47 Table 4-18 shows projected reserve balances and debt coverage under the status quo financial plan for the entire Water utility, including both the Water Operating Fund (Fund 561), Water Capital Project Fund (Fund 763), and the Water Impact Fund (764). Sources of funds include rate and non-rate revenues (from Table 4-11) as well as debt proceeds. Use of funds include O&M expenses (from Table 4-12), debt service (from Table 4-13), and CIP expenditures (from Table 4-15). All ending balance and debt coverage figures are projected values.

Target reserve balances shown are from Table 4-16.

Under the status-quo financial plan, reserves are projected to fall below the minimum target every year of the study period. Debt coverage is projected to fall well below the required ratio in all years. The status quo financial plan is insufficient to meet the Water utility’s financial needs over the study period. This demonstrates a clear need for revenue adjustments over the study period to increase rate revenues and ensure financial sustainability.

Table 4-18: Status Quo Water Financial Plan Pro Forma (Funds 561, 763, 764)

A B C D E F
Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Beginning Balances $2,102,348 $1,600,808 $731,426 ($1,756,107) ($4,508,765) 2 3 Source of Funds
4 Revenue from Existing Rates $7,230,857 $7,255,117 $7,279,521 $7,304,070 $7,328,764 5 Total Revenue Adjustments $0 $0 $0 $0 $0
6 Other Operating Revenue $34,150 $34,150 $34,150 $34,150 $34,150 7 Investment Income $15,234 $8,074 $0 $0 $0
8 Water Capital Revenues $0 $0 $0 $0 $0
9 Water Impact Fee Revenues $35,279 $35,619 $35,962 $36,309 $36,659 10 Bond Proceeds CIP Funding $3,019,490 $7,160,513 $11,502,580 $9,885,943 $1,931,474 11 SRF Proceeds $0 $0 $0 $0 $0
12 Go Bond Proceeds $302,400 $315,706 $327,702 $338,189 $349,011 13 Interfund CIP Funding $0 $0 $0 $0 $0
14 General Fund Loan (+Funds/-Payment) $0 $0 $0 $0 $0
15 Total Source of Funds $10,637,411 $14,809,179 $19,179,915 $17,598,661 $9,680,057 16 17 Use of Funds
18 Operating Expenses $6,251,002 $6,636,549 $6,926,137 $7,220,845 $7,529,145 19 One Time Expenses $0 $0 $0 $0 $0
20 Water Impact Fund Expenses $1,296 $1,296 $1,296 $1,296 $1,296 21 Rate Funded $0 $0 $0 $0 $726,366
22 Bond Funded $3,019,490 $7,160,513 $11,502,580 $9,885,943 $1,931,474 23 Interfund Loan Funded $0 $0 $0 $0 $0
24 Existing Debt Service $951,414 $951,147 $952,857 $948,168 $951,441 25 Proposed Debt Service $613,350 $613,350 $1,956,877 $1,956,877 $1,956,877 26 Water Capital Expenses $0 $0 $0 $0 $0
27 SRF CIP $0 $0 $0 $0 $0
28 GO Bond $302,400 $315,706 $327,702 $338,189 $349,011 29 Total Use of Funds $11,138,951 $15,678,560 $21,667,449 $20,351,318 $13,445,610 30 31 Ending Balance $1,600,808 $731,426 ($1,756,107) ($4,508,765) ($8,274,318) Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 48 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 48

4.2.7. Proposed Water Financial Plan
The Water utility must increase its revenues from water rates over the study period to adequately fund its operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding. Raftelis worked closely with City staff and the RSAC over nearly a dozen public meetings to identify financial plan options for consideration. The selected financial plan and annual revenue adjustments are shown in Table 4-19. Revenue adjustments represent annual percent increases to total rate revenue relative to rate revenue generated by the prior year’s water rates.

Table 4-19: Proposed Water Revenue Adjustments

A B C D E F
Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Effective Month July 1, 2023 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 2 Revenue Adjustments 28% 8% 8% 8% 8%
Table 4-20 combines projected Fund 561 revenues (from Table 4-11), O&M expenses (from Table 4-12), and debt service (from Table 4-13) to generate operating cash flow projections under the proposed financial plan.

By implementing the proposed revenue adjustments, we project that the Water Fund (Fund 561) will maintain sufficient operating cash flow and debt coverage through the study period. Appendix A shows the proposed 10-year pro forma for the entire Water utility, including both the Water Fund (Fund 561), Water Capital Project Fund (Fund 763), and the Water Impact Fund (764). Under the proposed financial plan, reserve balances and debt coverage are projected to achieve target policies and minimum requirements in all years of the rate-setting period.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 49 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 49 Table 4-20: Water Operating Cash Flow (Fund 561) – Proposed Financial Plan

A B C D E F G H
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Revenues
2 Revenue from Existing Rates $6,672,271 $7,230,857 $7,255,117 $7,279,521 $7,304,070 $7,328,764 3 4 Revenue Adjustments Adjustment 5 FY 2023 0.0% $0 $0 $0 $0 $0 $0 6 FY 2024 28.0% $2,024,640 $2,031,433 $2,038,266 $2,045,139 $2,052,054 7 FY 2025 8.0% $742,924 $745,423 $747,937 $750,465
8 FY 2026 8.0% $805,057 $807,772 $810,503
9 FY 2027 8.0% $872,393 $875,343
10 FY 2028 8.0% $945,370
11 Revenue Adjustment Totals $0 $2,024,640 $2,774,357 $3,588,746 $4,473,241 $5,433,735 12 Total Revenues from Rates $6,672,271 $9,255,497 $10,029,474 $10,868,267 $11,777,311 $12,762,498 13 Other Operating Revenue $7,150 $34,150 $34,150 $34,150 $34,150 $34,150 14 Investment Income $50,000 $25,358 $42,293 $57,362 $71,696 $92,637 15 Total – Revenues $6,729,421 $9,315,004 $10,105,917 $10,959,779 $11,883,157 $12,889,285 16 17 Operating Expenses 18 Operating Expenses $5,569,277 $6,251,002 $6,636,549 $6,926,137 $7,220,845 $7,529,145 19 One Time Expenses $1,614,000 $0 $0 $0 $0 $0 20 Total - Operating Expenses $7,183,277 $6,251,002 $6,636,549 $6,926,137 $7,220,845 $7,529,145 21 22 Net Revenue -$453,856 $3,064,002 $3,469,368 $4,033,642 $4,662,312 $5,360,140 23 24 Existing Debt Service $950,677 $951,414 $951,147 $952,857 $948,168 $951,441 25 Proposed Debt Service $0 $613,350 $613,350 $1,956,877 $1,956,877 $1,956,877 26 Annual Debt Service $950,677 $1,564,764 $1,564,497 $2,909,734 $2,905,045 $2,908,318 27 28 Net Cash After Debt Service -$1,404,533 $1,499,239 $1,904,872 $1,123,908 $1,757,267 $2,451,822 29 30 Debt Service Coverage 31 Calculated Coverage -0.48 1.96 2.22 1.39 1.60 1.84 32 Target Coverage 1.20 1.20 1.20 1.20 1.20 1.20

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 50 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 50 Figure 4-2 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. Debt coverage is expected to drop in FY 2025-26 and FY 2028-29 due to additional bond issuances, before increasing in future years.

Figure 4-2: Proposed Water Financial Plan – Projected Debt Coverage Figure 4-3 shows the Water utility’s projected ending balance under the proposed financial plan. The light blue bars indicate the ending balance. The total reserve target is represented by the blue line and the reserve target minimum is represented by the yellow line. The Water enterprise is projected to build up cash reserves through the planning period. By the end of the planning period, the Water utility’s reserves are projected to achieve the adopted reserve policy target.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 51 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 51 Figure 4-3: Proposed Water Financial Plan – Projected Ending Balances Figure 4-4 shows the proposed versus status quo operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the planning period.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 52 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 52 Figure 4-4: Proposed vs. Status Quo Water Financial Plan Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 53 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 53

4.3. Water Cost of Service Analysis
Section 4.3 details the cost of service (COS) analysis performed for the Water utility for FY 2024. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use and burden on the water system. This provides the basis for the development of proposed water rates through FY 2028.

4.3.1. Methodology
The first step in a COS analysis is to determine the revenue required from water rates. The total revenue requirement results from the financial plans. The framework and methodology utilized to develop the COS analysis and to apportion the revenue requirement to each customer class and tier is informed by the processes outlined in the AWWA’s Manual M1.

COS analyses are tailored to meet the specific needs of each water system. However, there are four distinct steps in every COS analysis to recover costs from customers in an accurate and fair manner:

1. Cost functionalization: O&M expenses and capital assets are categorized by their function in the system. Sample functions may include water supply, treatment, distribution, transmission, customer service, etc.

2. Cost causation component allocation: Functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include water supply, base delivery, extra-capacity, meters, and customer, among others. The revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Unit cost development: The revenue requirement for each cost causation component is divided by the appropriate units of service to determine the unit cost of each.

4. Revenue requirement distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component to customer classes based on each customer class’s individual service units.

This method of functionalizing costs is consistent with the AWWA’s Manual M1 and is widely used in the water industry to inform COS analyses.

4.3.2. Water Rate Revenue Requirement
Table 4-21 shows the rate revenue requirement for FY 2024 (also referred to as the test year). The revenue requirement is split into operating and capital (Columns C and D), which are later allocated based on either O&M expenses or capital asset valuation. The revenue requirements (Lines 2-6) are equal to FY 2024 operating expenses plus debt service. The revenue offsets (Lines 10-12) include miscellaneous rate revenue not subject to revenue adjustments and all Fund 561 non-rate revenues. These revenues are applied as offsets to the final rate revenue requirement. The adjustment for cash balance (Line 16) is equal to FY 2024 negative net operating cash flow and represents the additional rate revenue required to replenish cash reserves in FY 2024. All values are from the proposed water financial plan operating cash flow (Table 4-20). The final rate revenue requirement (Line 20) is calculated as follows:

Total revenue required from rates (Line 20) = Revenue requirements (Line 7) - Revenue offsets (Line 13) - Adjustments (Line 18)
Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 54 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 54 Table 4-21: FY 2023-24 Water Rate Revenue Requirement

A B C D
Line Description Operating Capital Total
1 Revenue Requirement
2 Operating Expenses $6,251,002 $0 $6,251,002
3 One Time Expenses $0 $0 $0
4 Existing Debt Service $0 $951,414 $951,414
5 Proposed Debt Service $0 $613,350 $613,350
6 Water Capital Expenses $0 $0 $0
7 Total $6,251,002 $1,564,764 $7,815,765
8 9 Revenue Offsets
10 Other Operating Revenue $34,150 $0 $34,150
11 Investment Income $25,358 $0 $25,358
12 Water Capital Revenues $0 $0 $0
13 Total Revenue Offsets $59,508 $0 $59,508
14 15 Adjustments
16 Adjustment for Cash Balance $0 ($1,499,239) ($1,499,239) 17 Adjustment for Mid-Year Increase $0 $0 $0
18 Total - Adjustments $0 ($1,499,239) ($1,499,239)
19 20 Total Revenue Requirement $6,191,494 $3,064,002 $9,255,497

4.3.3. Water System Peaking Factors
A significant portion of the costs of any water system are based on the peaking characteristics of customers plus fireflow capacity. A water system is designed to meet different requirements, including average demands extra-capacity (“peak demands”) demands, and capacity for firefighting. Peaking costs are divided into maximum day (Max Day) and maximum hour (Max Hour). The Max Day demand is the maximum volume of water used in a single day over a full year. The Max Hour demand is the maximum use in an hour on the Max Day. For example, storage and treatment components of the water system are designed to handle Max Day requirements while the distribution system is designed for Max Hour demands.

Table 4-22 shows system-wide peaking factors for the City’s water system, which are used to derive the cost component allocation bases for Base Delivery, Max Day, and Max Hour costs. Base Delivery use is considered average daily demand over one year, which has been normalized to a factor of 1.00 (Column C, Line 1). The Max Day peaking factor (Column C, Line 2) indicates that the Max Day demand is 1.82 times greater than the average daily demand. Similarly, the Max Hour peaking factor (Column C, Line 3) shows that the Max Hour demand is 2.91 times greater than average demand. The allocation bases (Columns D-F) are calculated using the equations outlined below. Columns are represented in these equations as letters, and lines are represented as numbers. For example, Column D, Line 2 is shown as D2.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 55 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 55 The Max Day allocations are calculated as follows:
» Base Delivery: C1 / C2 x 100% = D2
» Max Day: (C2 - C1) / C2 x 100% = E2
The Max Hour allocations are calculated as follows:
» Base Delivery: C1 / C3 x 100% = D3
» Max Day: (C2 - C1) / C3 x 100% = E3
» Max Hour: (C3 - C2) / C3 x 100% = F3
Table 4-22: Water System Peaking Factor Allocations

A B C D E F
Line Description
Peaking
Factors Base Max Day Max Hour Total
1 Base 1.00 100.0% 0.0% 0.0% 100.0%
2 Max Day 1.82 54.9% 45.1% 0.0% 100.0%
3 Max Hour 2.91 34.4% 28.2% 37.5% 100.0%

4.3.4. Functionalization and Allocation of Expenses
After determining the revenue requirement and systemwide peaking allocation basis, the next step of the water COS analysis is to allocate O&M expenses and capital assets to the following functional categories:
» Water Supply: costs related to producing and/or purchasing water supply » Pumping: costs related to the electrical cost of moving water through the system » Storage: costs related to water storage tanks and reservoirs » Treatment: costs associated with treating water to drinking water standards » Transmission: costs associated with transmitting through larger pipes from treatment facilities and interconnections to storage facilities
» Distribution: costs related to delivering water to customers from storage facilities to the meter » Conservation: costs associated with water conservation, outreach, and efficiency programs » Billing and Customer Service: costs of meter reading, billing, and other customer service functions » Meters: costs of meter maintenance and meter servicing » Fire Protection: costs directly attributable to private fire protection » General/Admin: costs associated with general administration of the Water Enterprise (i.e. indirect costs) » General and Conservation: costs within the City’s budget organization that are associated in part with water conservation, outreach, and efficiency programs and in part general in nature (and therefore allocated based on the overall allocation of general costs
» Revenue Offset: miscellaneous revenue that can be used to offset costs The functionalization of costs allows for the allocation of costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include:
» Water Supply: directly associated with the Water Supply functional category » Base Delivery: costs associated with providing water during average water demand conditions Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 56 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 56 » Peaking (Max Day and Max Hour): extra-capacity costs associated with providing water during peak demand conditions
» Conservation: directly associated with the Conservation functional category » Customer: directly associated with the Customer functional category » Meters: directly associated with the Meters functional category » Fire Protection: costs associated with fire protection » General: directly associated with the General/Admin functional category » Revenue Offsets: miscellaneous revenues applied as offsets to the rate revenue requirement Table 4-23 shows the basis for allocating each functional category to the various cost causation components.

This provides the basis for allocating O&M and capital expenses in the following subsections. Most functional categories are allocated entirely to the corresponding cost causation component. The allocation basis for functional categories not allocated entirely to a single cost causation component is as follows:
» Functional categories allocated based on Max Day demand: Storage, treatment, and transmission infrastructure is designed to accommodate maximum day water demands, plus fireflow. Therefore, all storage, treatment, and transmission costs are allocated to the Base Delivery and Max Day cost causation components based on the Max Day allocation from Table 4-22. » Functional categories allocated based on Max Hour demand: Distribution infrastructure is designed to accommodate maximum hour water demands, plus fireflow. Therefore, all distribution costs are allocated to the Base Delivery, Max Day, and Max Hour cost causation components based on the Max Hour allocation from Table 4-22.
» Conservation and General Operating: Conservation costs are co-mingled within specific operating budget line items. Raftelis worked with City staff to accurately allocate direct conservation costs and indirect general/administrative costs within these cost centers.

Water Supply: The City has three sources of water supply. All costs related to producing, pumping, and/or purchasing water from these sources is allocated to the supply cost component. Further in the COS these sources are differentiated and form the basis for the water use rates.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 57 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 57 Table 4-23: Allocation of Functional Categories to Water Cost Causation Components

A B C D E F G H I J K L
Line Functions Supply Base Max Day Max Hour Fire Meters Customer General Conser- vation Revenue Offset Total
1 Supply 100% 100%
2 Pumping 100% 100% 3 Storage 55% 45% 0% 100%
4 Treatment 55% 45% 0% 100% 5 Transmission 55% 45% 0% 100% 6 Distribution 34% 28% 37% 100% 7 Fire 100% 100% 8 Meter Service 100% 100% 9 Billing & CS 100% 100%
10 General & Admin 100% 100%
11 Conservation 100% 100% 12 Conservation/General 75% 25% 100% 13 Revenue Offset 100% 100%

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 58 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 58

4.3.5. Water O&M Expense Allocation
The next step of the COS analysis is to develop an allocation basis for the operating revenue requirement based on the functionalization of the Water O&M expenses. Raftelis worked with City staff to allocate O&M expenses, by line item, to the most closely associated functional category. Table 4-24 shows a summary of FY 2024 O&M expenses by functional category. This intermediate step is necessary to allocate total O&M expenses to individual cost causation components.

Table 4-24: Summary of Water O&M Expenses by Functional Category A B C
Line Function
FY 2024 O&M
Expenses Percent of Total
1 Supply $1,820,121 29.1%
2 Pumping $158,055 2.5%
3 Storage $0 0.0%
4 Treatment $1,145,451 18.3%
5 Transmission $0 0.0%
6 Distribution $702,100 11.2%
7 Fire $0 0.0%
8 Meter Service $24,150 0.4%
9 Billing & CS $397,919 6.4%
10 General & Admin $1,591,517 25.5%
11 Conservation $31,500 0.5%
12 Conservation and General $380,188 6.1%
13 Revenue Offset $0 0.0%
14 Total $6,251,002 100.0%
Table 4-25 shows the allocation of FY 2024 O&M expenses by functional category to each cost causation component. The allocation of each functional category (Columns B-K) to the various cost causation components was determined in Table 4-23. Total O&M expenses associated with each functional category (Column L) was determined in Table 4-24. The total dollar amount allocated to each cost causation component (Line 14) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

For example, 100 percent (Column B, Line 1) of Water Supply costs (Column L, Line 1) are allocated to the Water Supply cost causation factor total (Column B, Line 14).

Table 4-25 shows the allocation of FY 2024 O&M expenses by functional category to each cost causation component. The allocation of each functional category (Columns B-K) to the various cost causation components was determined in Table 4-23. Total O&M expenses associated with each functional category (Column L) was determined in Table 4-24. The total dollar amount allocated to each cost causation component (Line 14) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

For example, 100 percent (Column B, Line 1) of Water Supply costs (Column L, Line 1) are allocated to the Water Supply cost causation factor total (Column B, Line 14). The same calculation is performed for the remaining functional categories. The subtotals in Lines 1-13 are summed to determine the total dollar amount Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 59 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 59 allocated to the Water Supply cost causation factor (Column B, Line 14). The same calculations are repeated for the remaining cost causation components (Columns C-K) to determine the allocation of O&M expenses to each cost causation component (Line 14). The total operating revenue requirement (Column L, Line 14) equals the operating revenue requirement from Table 4-21, Column B, Line 21. The O&M allocation percentages (Line 16) represent the proportion of total O&M expenses allocated to each cost causation component (Line 14).

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 60 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 60 Table 4-25: Allocation of Water O&M Expenses to Cost Causation Components

A B C D E F G H I J K L
Line Function Supply Base Max Day Max Hour Fire Meters Customer General Conservation Revenue Offset Total
1 Supply $1,820,121 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,820,121 2 Pumping $158,055 $0 $0 $0 $0 $0 $0 $0 $0 $0 $158,055 3 Storage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 4 Treatment $0 $629,369 $516,083 $0 $0 $0 $0 $0 $0 $0 $1,145,451 5 Transmission $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 6 Distribution $0 $241,271 $197,843 $262,986 $0 $0 $0 $0 $0 $0 $702,100 7 Fire $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 8 Meter Service $0 $0 $0 $0 $0 $24,150 $0 $0 $0 $0 $24,150 9 Billing & CS $0 $0 $0 $0 $0 $0 $397,919 $0 $0 $0 $397,919 10 General & Admin $0 $0 $0 $0 $0 $0 $0 $1,591,517 $0 $0 $1,591,517 11 Conservation $0 $0 $0 $0 $0 $0 $0 $0 $31,500 $0 $31,500 12 Conservation and General $0 $0 $0 $0 $0 $0 $0 $285,089 $95,099 $0 $380,188 13 Revenue Offset $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 14 Total $1,978,176 $870,640 $713,925 $262,986 $0 $24,150 $397,919 $1,876,606 $126,599 $0 $6,251,002 15 % Allocation 31.6% 13.9% 11.4% 4.2% 0.0% 0.4% 6.4% 30.0% 2.0% 0.0% 100.0% 16 % Allocation - G&A Proportionally Allocated 45.2% 19.9% 16.3% 6.0% 0.0% 0.6% 9.1% 0.0% 2.9% 0.0% 100.0%

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 61 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 61

4.3.6. Water Capital Allocation
Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. Use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall water asset base however is considerably stable in the long-term, and therefore is more representative of long-term capital investment in the City’s Water’s water system. Thus, functionalized capital assets are used to allocate capital costs.

City staff provided Raftelis with a detailed asset listing that included the original cost of each individual asset.

Raftelis calculated the replacement cost less depreciation (RCLD) of each asset based on net book value using the Engineering News-Record’s (ENR) 20-City Average Cost Construction Index (CCI) for San Francisco to account for capital cost inflation. As part of the capital asset analysis, Raftelis assigned each individual asset to a functional category with the assistance of City staff. Total water asset value (RCLD) by functional category is shown in Table 4-26. Percentages are rounded to the nearest one-hundredth of one percent.

Table 4-26: Summary of Water Enterprise Capital Assets by Functional Category A B C
Line Function Asset Value (RCLD) Percent of Total
1 Supply $2,482,145 12.07%
2 Pumping $0 0.00%
3 Storage $11,136,052 54.16%
4 Treatment $4,412,655 21.46%
5 Transmission $0 0.00%
6 Distribution $2,482,890 12.08%
7 Fire $3,279 0.02%
8 Meter Service $1,834 0.01%
9 Billing & CS $0 0.00%
10 General & Admin $42,789 0.21%
11 Conservation and General $0 0.00%
12 Total $20,561,644 100.00%
Table 4-27 shows the allocation of capital assets by functional category to each cost causation component.

The percentage allocation of each functional category (Columns C-K) to the various cost causation components was determined in Table 4-23. Total asset value associated with each functional category (Column L) was determined in Table 4-26. The total dollar amount allocated to each cost causation component (Line 12) is determined by multiplying the total asset value associated with each functional category by the corresponding percentage allocation and summing across all functional categories. This is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 4-25. The final capital allocation percentages (Line 14) represent the proportion of total capital assets allocated to each cost causation component (Line 12).

The capital allocation percentages (Line 14) are used to allocate the total capital revenue requirement. The total capital revenue requirement (Column L, Line 17) equals the capital revenue requirement from Table Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 62 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 62 4-21, Column D, Line 15. This total is allocated to each cost causation component (Columns C-K, Line 17) based on the final capital allocation percentages (Columns C-K, Line 14).

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 63 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 63 Table 4-27: Allocation of Functionalized Water Capital Assets to Cost Causation Components

A B C D E F G H I J K L
Line Function Supply Base Max Day Max Hour Fire Meters Customer General Conservation Revenue Offset Total
1 Supply $2,482,145 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,482,145 2 Pumping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 3 Storage $0 $6,118,710 $5,017,342 $0 $0 $0 $0 $0 $0 $0 $11,136,052
4 Treatment $0 $2,424,536 $1,988,119 $0 $0 $0 $0 $0 $0 $0 $4,412,655 5 Transmission $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 6 Distribution $0 $853,227 $699,646 $930,017 $0 $0 $0 $0 $0 $0 $2,482,890 7 Fire $0 $0 $0 $0 $3,279 $0 $0 $0 $0 $0 $3,279 8 Meter Service $0 $0 $0 $0 $0 $1,834 $0 $0 $0 $0 $1,834 9 Billing & CS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 10 General & Admin $0 $0 $0 $0 $0 $0 $0 $42,789 $0 $0 $42,789 11 Conservation and General $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 12 Total $2,482,145 $9,396,472 $7,705,107 $930,017 $3,279 $1,834 $0 $42,789 $0 $0 $20,561,644
13 % Allocation 12.1% 45.7% 37.5% 4.5% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 100.0% 14 % Allocation - G&A Proportionally Allocated 12.1% 45.8% 37.6% 4.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 64 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 64

4.3.7. Water Non-Rate Revenue (Revenue Offset) Allocation Table 4-28 shows the allocation of non-rate revenue to each cost causation component. Other operating revenue (Column L, Line 1) is allocated using the operating allocation proportions from Table 4-25, Line 16.

Investment Income and Water Capital Revenues (Column L, Lines 2-3) are allocated using the asset allocation proportions from Table 4-27, Line 14. The total dollar amount allocated to each cost causation component (Line 4) is determined by multiplying the total revenue offset by the corresponding percentage allocation and summing across all functional categories.

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 65 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 65 Table 4-28: Allocation of Revenue Offsets to Cost Causation Components

A B C D E F G H I J K L
Line Revenue Offset Function Supply Base
Max Day
Max Hour Fire Meters Customer General Conservation Total 1 Other Operating Revenue Operating $15,443 $6,797 $5,573 $2,053 $0 $189 $3,106 $0 $988 $34,150 2 Investment Income Capital $3,067 $11,612 $9,522 $1,149 $4 $2 $0 $0 $0 $25,358 3 Water Capital Revenues Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 4 Total $18,511 $18,409 $15,096 $3,202 $4 $191 $3,106 $0 $988 $59,508

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 66 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 66

4.3.8. Preliminary Water Cost of Service Allocation
Table 4-29 shows the preliminary allocation of the total FY 2023-24 rate revenue requirement to the various cost causation components. The preliminary COS allocations (Column F) are subject to further adjustments based on additional reallocations developed in the following subsections. The results shown in Table 4-29 are calculated as follows based on intermediate results developed in the preceding subsections:

1. Operating Revenue Requirement (Column B): The total operating revenue requirement consists solely of the Water Enterprise’s O&M expenses. The allocation of the total operating revenue requirement to each cost causation component was previously determined in Table 4-25, Columns B-K, Line 16.

2. Capital Revenue Requirement (Column C): The total capital revenue requirement consists of debt service and reserve funding for future CIP. The allocation of the total capital revenue requirement to each cost causation component was previously determined in Table 4-27, Columns B-K, Line 14.

3. Revenue Offsets (Column D): The total revenue offset consists of non-rate revenue including other operating revenue, investment income, and water capital revenues. The allocation of the revenue offsets to each cost causation component was previously determined in Table 4-28, Columns B-K, Line 4.

4. Reallocation of General Costs (Column E): The total General cost allocation equals the operating revenue requirement (Column B, Line 8) and capital revenue requirement (Column C, Line 8) allocated to the General cost causation component. The total General revenue requirement is fully reallocated to all other cost causation components on a pro rata basis3 (Column E, Lines 2-9) excluding the Water
Supply cost causation component since most of the Water Supply costs are simply purchased water costs. Note that the reallocation results in a shifting of costs between cost causation components but does not change the total rate revenue requirement.

5. Preliminary Cost of Service Allocation (Column F): The preliminary COS allocation to each cost causation component (Column F, Lines 1-9) equals the sum of Columns B-E. Note that the total COS allocation (Column F, Line 10) equals the total FY 2024 rate revenue requirement (from Table 4-21, Column D, Line 20).
3 The operating (Column C) and capital (Column D) revenue requirements are summed for each cost causation component shown in Lines 2-8. The percentage of the sum falling within each cost causation component (Lines 2-8) is multiplied by total reallocated General costs (Column F, Line 9) to determine the share of General costs reallocated to each cost causation component (Column F, Lines 2-8).

Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 67 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 67 Table 4-29: Preliminary Water Cost of Service Allocation (FY 2024)

A B C D E F
Line
Cost
Causation
Component
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Revenue
Offsets
Reallocation
of General
Costs
Preliminary
COS
Allocation
1 Supply $1,978,176 $369,878 ($18,511) $0 $2,329,543
2 Base $870,640 $1,400,219 ($18,409) $841,037 $3,093,487 3 Max Day $713,925 $1,148,180 ($15,096) $689,650 $2,536,660 4 Max Hour $262,986 $138,587 ($3,202) $148,746 $547,117 5 Fire $0 $489 ($4) $181 $665
6 Meters $24,150 $273 ($191) $9,048 $33,281
7 Customer $397,919 $0 ($3,106) $147,418 $542,231
8 General $1,876,606 $6,376 $0 ($1,882,982) $0
9 Conservation $126,599 $0 ($988) $46,902 $172,513
10 Total $6,251,002 $3,064,002 ($59,508) $0 $9,255,497

1.2.9. Allocation of Fire Protection Costs
Water systems provide two types of fire protection: fire flows for fire protection from fire hydrants for firefighting; and fire flows from fire lines for private structures with fire suppression sprinkler systems. In 2020, Senate Bill No. 1386 was enacted into California law, and it added Section 53750.5 to the part of the California Government Code known as the Proposition 218 Omnibus Implementation Act, and it reads as follows:
(a) The Legislature finds and declares all of the following:
(1) Fire service is a different and distinct service from water service, which is one of several other propertyrelated services that aids in the provision of fire service provided to properties. (2) Hydrants are part of the system of public improvements described in subdivision (n) of Section 53750. (3) Hydrants are generally designed, installed, and used to provide an immediately available water service to aid in extinguishing fires that threaten property served by a water service provider, and are generally not designed or installed to provide water service to aid in extinguishing fires that threaten property not served by a water service provider or wildfires. Hydrants are also used by a water service provider for water system operations and maintenance.
(4) Hydrants are generally located in proximity to properties served by a water service provider to facilitate water service to those properties. Hydrants and the water distributed through them have a direct relationship to property ownership because hydrants are generally sized based upon property use and then are installed when parcels are developed or connected to a water system. (5) Hydrants and the water distributed through them are not available to the public at large in substantially the same manner as they are to property owners served by a water service provider because hydrants are designed, installed, and used to serve properties receiving water service, and the public at large does not generally have access to water through those hydrants. Incidental or other de minimis use of hydrants and the Agenda Item #11.2.

City of St. Helena / Water and Wastewater / Cost of Service and Rate Study Report 68 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 68 water distributed through them for other purposes does not change their essential character as a propertyrelated service. (6) Hydrants and the water distributed through them are part of the property-related water service provided to all property owners served by a water service provider. Through hydrants, water is immediately available to those properties to aid in extinguishing a fire that directly threatens them. The cost associated with this aspect of water service is proportionately allocable among properties that may receive a reasonably similar level of service from the immediate availability of water to aid in extinguishing fires that directly or indirectly threaten those properties.
(7) Property-related water service costs may include, but are not limited to, any costs associated with constructing, maintaining, repairing, upgrading, and replacing hydrants, and costs associated with obtaining, treating, and distributing adequate volumes of water to meet the water demands of properties served by the water service provider, including water supplied for firefighting purposes. The fees or charges related to those costs are imposed upon a parcel or person as an incident of property ownership. (b) The fees or charges for property-related water service imposed or increased pursuant to Section 6 of Article XIII D of the California Constitution may include the costs to construct, maintain, repair, or replace hydrants as needed or consistent with applicable fire codes and industry standards, and may include the cost of water distributed through hydrants. In addition to any other method consistent with Section 6 of Article XIII D of the California Constitution, fees or charges for the aspects of water service related to hydrants and the water distributed through them may be fixed and collected as a separate fee or charge, or included in the other water rates and charges fixed and collected by a public agency, as provided for in Section 53069.9 of the Government Code.
(c) For the purpose of this section, “hydrants” means all hydrants and other infrastructure used to distribute water that aids in the protection of property from fire, and all related or appurtenant infrastructure and facilities owned by a water service provider necessary or convenient for distributing water that aids in the protection of property from fire, including adequately sized and pressurized lines, pumps, and all appurtenances, but does not include privately owned hydrants or other private fire response related infrastructure.
(d) This section is declaratory of existing law.

This provision is declarative of existing law, and clarifies that the costs of water service chargeable to property owners include the cost of infrastructure, such as fire hydrants, that provide fire protection for nearby properties.

Raftelis confirmed with City staff that this provision is consistent with the City’s operations and use of fire hydrants.

Raftelis performed a fire demand analysis to determine the share of Fire Protection costs allocated to fire hydrants (hydrant fire flow) and private fire lines (private fire). The City provided Raftelis with a count of fire hydrants connected to its water system. The projected number of private fire lines in FY 2024 was previously shown in Table 4-5.

Agenda Item #11.2.