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pond. Weeds may be removed mechanically using long reach excavators, aquamogs, or other mechanical method. Any mechanical method used shall be scheduled in advance, and the equipment self-inspected after use to prevent the transport of invasive species offsite. Removal of weeds from the backwash pond shall be done twice per year.
All material generated during operations may be disposed onsite or removed from the site by the end of the workday. Disposal of removed plant materials, especially diseased or infested specimens, shall be off-site and performed in accordance with all applicable laws, codes, and regulations.
3.3 Elderberry Trees and Bushes.
The application of weed spray shall not cause harm to existing trees, bushes, or other desirable plantings. Extreme caution shall be used when spraying around existing Elderberry trees or bushes. The Contractor is expected to provide the highest level of quality in maintenance compatible with standard horticultural practices and modern techniques accepted by the industry.
3.4 Integrated Pest Management.
To the greatest extent practicable, the City expects the Contractor to use Integrated Pest Management practices, principals, and concepts and least toxic methods of pest control to achieve the expected/specified results. The Contractor is encouraged to consult the University of California Agriculture and Natural Resources Statewide Integrated Pest Management Program at www.ipm.ucdavis.edu to determine the most effective and least toxic methods of pest control.
The Contractor shall comply with all applicable County, State or Federal regulations regarding pesticides, herbicides, and fertilizers. Contractor shall analyze plant problems and apply correct types and rates of fertilizers, insecticides, fungicides, and herbicides.
Any insecticides, pesticides, herbicides, fungicides, and/or fertilizers used shall be applied in accordance with manufacturer's instructions.
Contractor shall advise the City in writing prior to the application of any insecticides, pesticides, herbicides, fungicides, and/or fertilizers. Contractor shall provide the City with Safety Data Sheets (SDS) for all insecticides, pesticides, herbicides, fungicides, and/or fertilizers proposed for use prior to their actual use. The Contractor shall provide a sitespecific schedule showing where, when and what insecticides, pesticides, herbicides, fungicides, and/or fertilizers will be applied at least five (5) working days prior to application. Contractor is solely responsible for any damages due to contractor's application or misapplication of insecticides, pesticides, herbicides, fungicides, and/or fertilizers.
At least three days prior to a proposed application of a pesticide, a notice shall be posted on City property. The notice shall be conspicuously posted in one or more regular locations at the site of the application. It shall be 8 1/2" by 11" and specify the pest, Contract with Chem-Weed LLC for Pond Weed Maintenance
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manner of application, proposed date of application, the time, and location. It shall contain the brand and common name of the pesticide and list the acute effects. The notice shall remain posted for three days after the application.
Pest management schedules, applications, public posting, and Safety Data Sheets (SDS) shall be discussed and reported with the Project Manager.
4. Major Deliverables.
4.1 By the fifth of January of each year, Contractor shall provide a written report of Integrated Pest Management practices, principals, and concepts and least toxic methods of pest control used during the previous 12 months (January 1-December 31).
4.2 The Contractor shall provide the City with Safety Data Sheets (SDS) for all insecticides, pesticides, herbicides, fungicides, and/or fertilizers proposed for use prior to their actual use.
4.3 The Contractor shall provide a site-specific schedule showing where, when and what insecticides, pesticides, herbicides, fungicides, and/or fertilizers will be applied at least five (5) working days prior to application.
5. Notices.
Pursuant to Exhibit C – General Terms and Conditions, Paragraph 15 – Notices, the mailing address for all required notices is as follows:
Contractor: Chem-Weed LLC City: City of Stockton
Attn: Art Prudhel Attn: City Manager
P.O. Box 862 425 N. El Dorado Street
Thornton, CA 95686 Stockton, CA 95202
Contract with Chem-Weed LLC for Pond Weed Maintenance
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1 Exhibit B:
Insurance Requirements
(Pond Weed Maintenance)
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (nonowned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
(Not required if contractor provides written verification it has no employees)
4. Pollution Liability applicable to the work being performed, to include non-aerial spraying of pesticides and herbicides, etc., with a limit no less than $2,000,000 per claim or occurrence and $2,000,000 aggregate per policy period of one year.
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Stockton requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
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2 Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.
Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.
Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton.
Waiver of Subrogation
Contractor hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any Contract with Chem-Weed LLC for Pond Weed Maintenance
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3 endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Stockton has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton. The CGL and any policies, including Excess liability policies, may not be subject to a self-insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City of Stockton. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City of Stockton may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City of Stockton reserves the right to obtain a copy of any policies and endorsements for verification.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Stockton.
Claims Made Policies (Professional & Pollution only)
If any of the required policies provide claims-made coverage:
1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claimsmade policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
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4 Verification of Coverage
Contractor shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City of Stockton before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City of Stockton is an additional insured on insurance required from subcontractors.
Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
Special Risks or Circumstances
City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Certificate Holder Address
The address for mailing certificates, endorsements and notices shall be:
City of Stockton
Its Officers, Officials, Employees, and Volunteers
400 E Main Street, 3rd Floor – HR
Stockton, CA 95202
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EXHIBIT C
GENERAL TERMS AND CONDITIONS
1. Goods, Equipment and Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in Exhibit A of the Agreement. Contractor shall provide said services at the time, place and in the manner specified in Exhibit A of the Agreement.
2. City Assistance, Facilities, Equipment and Clerical Support. Except as set forth in Exhibit A, Contractor shall, at its sole cost and expense, furnish and maintain all facilities and equipment that may be required for furnishing services pursuant to this Agreement. If applicable, City shall furnish to Contractor only the facilities and equipment listed in Exhibit A to the Agreement.
3. Compensation. City shall pay Contractor for services rendered pursuant to this Agreement as described more particularly in Exhibit A and Exhibit E to the Agreement.
3.1 Invoices submitted by Contractor to City must contain a brief description of work performed, time spent and City reference number. Within thirty (30) days of receipt of Contractor’s invoice, City will review invoice, and if acceptable make payment on approved invoice.
3.2 Upon completion of work and acceptance by City, Contractor shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.
4. Sufficiency of Contractor’s Work. All Contractor services, work, and deliverables shall be performed in a good and workmanlike manner with due diligence in accordance with the degree of skill normally exercised by similar contractors supplying services and work of a similar nature, and in conformance with applicable laws, codes and professional standards. Contractor’s work shall be adequate and sufficient to meet the purposes of this Agreement.
5. Ownership of Work. All reports, work product, all other documents completed or partially completed by Contractor or its approved subcontractors, in performance of this Agreement, and if applicable, drawings, designs, and plan review comments shall become the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Contractor and its approved subcontractors agree to execute any additional documents that may be necessary to evidence such assignment. All materials shall be delivered to the City upon completion or termination of the work under Contract with Chem-Weed LLC for Pond Weed Maintenance
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this Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Contractor shall replace them at its own expense. Contractor and its approved subcontractors shall keep materials confidential. Materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.
6. Timeliness. Time is of the essence in this Agreement. Further, Contractor acknowledges that the failure of Contractor to comply with the time limits described in Exhibit A and Exhibit F may result in economic or other losses to the City.
7. Changes. Both parties to this Agreement understand that it may become desirable or necessary during the term of this Agreement for City to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with City and the change and cost shall be memorialized in a written amendment to the original contract prior to the performance of the additional work. Until the amendment is so executed, City will not be responsible to pay any charges Contractor may incur in performing such additional services, and Contractor shall not be required to perform any such additional services.
8. Amendment. No variation of the terms of this Agreement shall be valid unless an amendment is made in writing and signed by both parties.
9. Contractor’s Status.
9.1 In performing the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and Contractor shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Contractor are its agents and employees and are not agents or employees of City.
Contractor by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of City. Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City. No agent, officer or employee of the City is to be considered an employee of the Contractor. It is understood by both Contractor and City that this Agreement shall not be construed or considered under any circumstances to create an employer-employee relationship or a joint venture.
9.2 Contractor shall determine the method, details and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to City's control with respect to the physical action or activities of Contractor in fulfillment of this Agreement.
Contractor has control over the manner and means of performing the services under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement.
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9.3 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment or requirements of law shall be determined by the Contractor.
9.4 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement.
10. Subcontractor.
10.1 Subcontractors shall not be recognized as having any direct or contractual relationship with City. Contractor shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Agreement. Subcontractors will be provided with a copy of the Agreement and be bound by its terms. Contractor is responsible to City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.
10.2 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment including hours, wages working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by Contractor.
10.3 It is further understood and agreed that all Subcontractors must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Subcontractor’s personnel.
11. Termination.
11.1 Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received.
11.2 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party, at that party’s option, may terminate this Agreement by giving written notification to the other party.
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11.3 Funding- Non-Appropriation. It is mutually understood between the Parties that payment to the Contractor for performance shall be dependent upon the availability of appropriations by the City Council for the purposes of this Agreement. No legal liability on the part of the City for any payment may arise under this Agreement until funds are made available and until the Contractor has received funding availability, which will be confirmed in writing. If funding for any fiscal year is reduced or deleted, or if the City loses funding for any reason, the City, in its sole discretion, shall have the option to either (a) cause this Agreement to be canceled or terminated pursuant to applicable provisions of the Agreement; or (b) offer to amend the Agreement to reflect the reduced funding for this Agreement.
12. Non-Assignability. The Contractor shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing.
Contractor shall be solely responsible for reimbursing subcontractors.
13. Indemnity and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.
14. Insurance. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit B to this Agreement and shall otherwise comply with the other provisions of Exhibit B to this Agreement.
15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed in Exhibit A to this Agreement.
16. Conformance to Applicable Laws. Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.
Contract with Chem-Weed LLC for Pond Weed Maintenance
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5 (Rev. 10.30.18; Mod 05.08.23 RM; Mod 03.27.24 RM)
17. Licenses, Certifications and Permits. Prior to the City’s execution of this Agreement and prior to the Contractor’s engaging in any operation or activity set forth in this Agreement, Contractor shall obtain a City of Stockton business license, which must be kept in effect during the term of this Agreement. Contractor covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement. Such licenses, certificates and permits shall be maintained in full force and effect during the term of this Agreement.
18. Records and Audits. Contractor shall maintain all records regarding this Agreement and the services performed for a period of three (3) years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit. To the extent Contractor renders services on a time and materials basis, Contractor shall maintain complete and accurate accounting records, in a form prescribed by City or, if not prescribed by City, in accordance with generally accepted accounting principles, such records to include, but not be limited to, payroll records, attendance cards, time sheets, and job summaries.
19. Confidentiality. Contractor shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.
20. Conflicts of Interest. Contractor covenants that other than this Agreement, Contractor has no financial interest with any official, employee or other representative of the City. Contractor and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner of degree by the performance of Contractor’s services under this Agreement. If such an interest arises, Contractor shall immediately notify the City.
21. Waiver. In the event either City or Contractor at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation. No payment, partial payment, acceptance, or partial acceptance by City shall operate as a waiver on the part of City of any of its rights under this Agreement.
22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.
23. No Personal Liability. No official or employee of City shall be personally liable to Contractor in the event of any default or breach by the City or for any amount due Contractor.
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6 (Rev. 10.30.18; Mod 05.08.23 RM; Mod 03.27.24 RM)
24. Severability. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or city statue, ordinance or regulation the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.
25. Non-Discrimination. During the performance of this Agreement, Contractor and its officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any federal, state, or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religion, color, national origin, ancestry, physical or mental disability, medical condition (including genetic characteristics), marital status, age, political affiliation, gender identity, gender expression, sex or sexual orientation, family and medical care leave, pregnancy leave, or disability leave. Contractor and its officers, employees, agents, representative or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non-discrimination and equal opportunity, including without limitation the City’s nondiscrimination policy; the Fair Employment and Housing Act (Government Code sections 12990 (et seq.); California Labor Code sections 1101, 1102 and 1102.1; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulation or Code of Federal Regulations. Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” (42 USC Section 2000d). http://www.dol.gov/oasam/regs/statutes/titlevi.htm. The City requires compliance with the requirements of Title VI in all of its programs and activities regardless of funding source.
26. Force Majeure. Neither party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power or other acts or causes reasonably beyond the control of that party. The party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event, and to use diligent efforts to re-commence performance as promptly as commercially practicable.
27. Taxes and Charges. Contractor shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of the Contractor’s business.
28. Cumulative Rights. Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies to which may be legally entitled.
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29. Advice of Attorney. Each party warrants and represents that in executing this Agreement, it has received independent legal advice from its attorneys or the opportunity to seek such advice.
30. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.
31. Entire Agreement, Integration, and Modification.
31.1 This Agreement represents the entire integrated agreement between Contractor and the City; supersedes all prior negotiations, representations, or agreements, either written or oral between the parties and may be amended only by a written Amendment signed by the Contractor and City Manager.
31.2 All Exhibits to this Agreement and this Agreement are intended to be construed as a single document.
32. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
33. Authority. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.
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EXHIBIT D
GOODS AND SERVICES TERMS AND CONDITIONS
1. Definitions. The following words and phrases have the following meanings for purposes of this Agreement:
1.1 "Services" means, collectively, the services, duties and responsibilities described in Exhibit A of this Agreement and any and all work necessary to complete them or carry them out fully and to the standard of performance required in this Agreement.
1.2 “Deliverable” means quantifiable goods or services that will be provided upon completion of a project. A deliverable is any tangible material, work or thing delivered by one party to the other, including associated technical documentation. A deliverable can be tangible or intangible parts of the development process, and often are specified functions or characteristics of the project.
2. General. The following terms and conditions are applicable for the purchase of goods and services only. The special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions (“GTC”) Exhibit C, and all other Exhibits identified in the Standard Agreement.
2.1 Where any portion of the GTC is in conflict to or at variance with any provisions of the Special Conditions of the Agreement, then unless a different intention stated, the provision(s) of the Special Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the Special Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.
2.2 In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both shall remain in effect. The Special Conditions shall relate to a particular project and be peculiar to that project but shall not weaken the character or intent of the GTC.
3. Time for Performance.
3.1 Contractor shall perform the services according to the schedule contained in Exhibit F.
3.1 Timeliness of Performance i) Contractor shall provide the Services, and Deliverables within the term and within the time limits required under this Agreement, pursuant to the provisions of Exhibit A and Exhibit F. ii) Neither Contractor nor Contractor’s agents, employees nor subcontractors are entitled to any damages from the City, nor is any party entitled to be reimbursed by the City, for damages, charges or other losses or expenses incurred by Contractor by reason of delays or hindrances in the performance of the Services, whether or not caused by the City.
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4. Standard of Performance
In addition to Exhibit C, Section 4 and 17, Contractor agrees as follows:
4.1 Contractor’s Services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Contractor’s profession currently practicing under similar conditions. Contractor shall comply with the profession’s standard of performance, applicable laws, regulations, and industry standards. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. If Contractor is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Contractor shall maintain that license, certification, registration, or other similar requirement throughout the term of this Agreement.
4.2 Contractor acknowledges that it is entrusted with or has access to valuable and confidential information and records of the City and with respect to that information, Contractor agrees to be held to the standard of care of a fiduciary. Contractor shall assure that all services that require the exercise of professional skills or judgment are accomplished by professionals qualified and competent in the applicable discipline and appropriately licensed, if required by law. Contractor must provide copies of any such licenses. Contractor remains responsible for the professional and technical accuracy of all Services or Deliverables furnished, whether by Contractor or its subcontractors or others on its behalf. All Deliverables must be prepared in a form and content satisfactory to the Using Agency and delivered in a timely manner consistent with the requirements of this Agreement.
4.3 If Contractor fails to comply with the foregoing standards, Contractor must perform again, at its own expense, all Services required to be re-performed as a direct or indirect result of that failure. Any review, approval, acceptance, or payment for any of the Services by the City does not relieve Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Deliverables. This provision in no way limits the City’s rights against Contractor either under this Agreement, at law or in equity.
5. Compensation
5.1 In addition to Section 3 Compensation in Exhibit C – GTC, the Contractor shall be compensated for the services provided under this Agreement as follows:
5.1.1 Contractor shall be compensated for services rendered and accepted under this Agreement and shall be paid monthly, in arrears on a not to exceed basis, based upon the rates set forth in Exhibit E attached hereto and made a part of this Agreement. Contractor may vary the compensation for each task in Exhibit E provided Contract with Chem-Weed LLC for Pond Weed Maintenance
EXHIBIT 2
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that the total project compensation listed in Exhibit E and the Standard Agreement is not exceeded.
6. Reports and Information
Contractor shall at such times and in such forms as the City may require furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters are covered by this Agreement as specified in Exhibit A and Exhibit E.
7. Findings Confidential
All the reports, information, data, et cetera, prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the City. Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is required by applicable law or by proper legal or governmental authority, is already rightfully in the Contractor’s possession without obligation of confidentiality, is independently developed by Contractor outside the scope of this Agreement or is rightfully obtained from third parties. Contractor shall give City prompt notice of any such legal or governmental demand and reasonably cooperate with City in any effort to seek a protective order or otherwise to contest such required disclosure.
8. Right of Inspection
All Deliverables furnished by Contractor must be as specified in Exhibit A and will be subject to inspection and approval of City after delivery. City reserves the right to reject and return, at the risk and expense of Contractor, the portion of any Deliverable which may be defective or fail to comply with specifications in Exhibit A without invalidating the remainder of the Deliverables. If rejected, Deliverable will be held for disposition at the expense and risk of Contractor. Payment for Deliverable prior to inspection shall not constitute acceptance of the Deliverable.
9. Warranty
Contractor warrants that (i) any Deliverable created or performed by Contractor for City under this Agreement will conform to specifications, drawings or samples furnished by City to Contractor for a minimum period of one year, and (ii) any standard Deliverable sold by Contractor to other customers besides City will meet or exceed any of the standards for such types of product in industry, any express or implied warranty stated or advertised by Contractor or the actual manufacturer of such Deliverable, or any warranties implied by law. Contractor’s warranty shall survive delivery of Deliverable and shall not be deemed waived by City’s failure to discover defects, acceptance of the Deliverable, or payment, therefore.
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10. Ownership
Contractor shall have title to and bear the risk of any loss or damage to the Deliverable until the Deliverable is delivered and accepted by City in conformity with this Agreement. Upon delivery and acceptance, Deliverable delivered by Contractor shall become the exclusive property of City. The ownership rights described herein shall include, but not be limited to, the right to copy, publish, display, transfer, or otherwise use the Deliverable. All artwork, patterns, dies, models, samples, materials, drawings, specifications, technical material, advertising material and any other personal property furnished by City to Contractor, or specifically paid for by City for use in performance of the Agreement, shall be and remain the property of City and said property shall be used only for Deliverables benefiting City. Contractor shall return to City or shall dispose of this property only according to City’s instruction.
11. Applicable Laws
Under guidelines specified in 29 CFR 1910.1200 (f) and (g) City requests that Contractor label applicable Deliverables accordingly and provide associated Safety Data Sheets (“SDS”) to City.
Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.
12. Prevailing Wage
It shall be the responsibility of the Contractor to comply, when applicable, with the prevailing wage rates in accordance with the State of California Department of Industrial Relations. It shall further be the responsibility of the Contractor to monitor the prevailing wage rates as established by the California Department of Industrial Relations for any increase in rates during the term of this Agreement and adjust wage rates accordingly.
CONTRACTOR REGISTRATION REQUIREMENTS- Pursuant to Labor Code Section 1771.1(a): A Contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. It is not a violation of this section for an unregistered Contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the Contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
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No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5. Department of Industrial Relations- Contractor Registration information and web link: https://www.dir.ca.gov/public-works/publicworks.html. In compliance with Senate Bill 854 and the California Labor Code, all Bidders shall include with their Bid proof of registration from the Department of Industrial Relations (DIR) that includes the contractor’s Legal Name, Registration Number, License Type/Number, Registration Date and Expiration Date, for every contractor and subcontractor, regardless of tier.
This project may be subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractors must submit their certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit, as well as the City of Stockton.
13. Shipping Terms
City shipment terms are F.O.B. Destination, Freight Prepaid and Added unless otherwise specified in the Agreement. Contractor shall observe shipping instructions and, unless otherwise stated in the instructions, shall ship Deliverables in the safest and most economical manner necessary to meet the delivery date specified in the Agreement.
Contractor shall provide an itemized packing list showing the Agreement number with the shipment. Contractor shall include the Agreement number on all packages, boxes, invoices, and shipping documents. Contractor shall label all individual boxes with stock number and quantity and items with different stock numbers shall be boxed separately.
City reserves the right to refuse, at Contractor’s expense, any shipments not containing the Agreement number or stock numbers as required under this section.
14. Deliveries
TIME IS OF THE ESSENCE IN THE PERFORMANCE OF ANY ORDER. If Deliverable is not provided or performed within the times specified in the Agreement, City may cancel the Agreement and hold Contractor liable for damages incurred due to the untimely delivery including, but not limited to, the additional costs resultant from City procuring substitute Deliverables elsewhere.
15. Price and Quantities
Prices and quantities set forth in this Agreement may not be altered by Contractor without the prior written authorization of City, with the exception that quantities of custom paper or printed Deliverables, chemicals, or fuel may deviate from those in the Agreement by the lesser of standard industry practices.
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1 EXHIBIT E
COMPENSATION SCHEDULE
The Contractor shall be compensated for the services identified in Exhibit A, Exhibit C, and Exhibit D to this Agreement as follows:
1. Project Price
1.1 The maximum the Contractor shall be paid on this Agreement is $1,059,884.81 (hereafter the “not to exceed” amount). The “not to exceed” amount includes all payments to be made pursuant to this Agreement, including City approved reimbursable expenses, if any. Nothing in this Agreement requires the City to pay for work that does not meet the Standard of Performance identified in Exhibit D section 4 or other requirements of this Agreement.
1.2 The Contractor shall be entitled to receive payments for its work performed pursuant to the Agreement. The City will pay Contractor based on invoices for acceptable work performed and approved until the “not to exceed” amount is reached. Per the bid documents, the Contractor will receive a 3% increase effective July 1 of each year beginning in the second year.
Bid
Item
Area Description Initial
Clean-up
Cost
(if applicable)
Total Proposed
Annual
Maintenance
Cost
(Year 1)
A South side of Ponds 1-3 $3,220.00 $21,336.00
B West side of Pond 3 $1,035.00 $6,858.00
C North side of Ponds 2-3 $1,840.00 $12,192.00
D North and Northeast side of Pond 1 $2,300.00 $15,240.00 E Six feet east of the perimeter road, westward to the
top of the farthest shoulder of Pond 1 levee
$460.00 $3,048.00
F West side of the wetlands to the inside toe of the
wetlands levee
$920.00 $6,096.00
G Perimeter fence on the south side of the road, north
to 6 feet north of the road.
$2,173.50 $14,401.80
H South side of the channel to the north side of the
channel.
$345.00 $2,286.00
I Perimeter of the backwash lagoon down to the
waterline and annual removal of all floating material.
$115.00 $762.00
I Twice annual cleanup of all floating material in the
backwash lagoon
$- $90,000.00
J Pipe storage area within Area E $1,725.00 $11,430.00
K John Turk Road (between pond 1 and pond 2) $1,035.00 $6,858.00 L Access road between pond 2 and pond 3. $920.00 $6,096.00 "Total Items A Through J $16,088.50 $196,603.80
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2 2. Task Price. Below is the price for the services if additional service is necessary, or if a service is not performed per specification, these values will be used to determine the compensation for additional service or deduction for service not performed as described in Exhibit A of this Agreement.
Task Description Cost per Service
1 Spray Application $230.00 / Acre
2 Debris Removal $127.00 / Acre
3 Weekly Inspection $500.00 / Week
4 Mechanical Weed Removal - Equipment $23,600.00 / Event 5 Mechanical Weed Removal – Crew $14,400.00 / Event
6 Debris Removal $6,800.00 / Event
3. Invoice to Address. Each invoice submitted shall identify the specific task(s) listed in Exhibit A and this Exhibit, and the completed work product/deliverable for the agreed upon price listed in this Exhibit. Invoices shall be submitted to the below address:
City of Stockton Municipal Utilities Department
Attention: Program Manager III - Wastewater
2500 Navy Drive
Stockton, CA 95206
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City of Stockton
Legislation Text
File #: 24-0755, Version: 1
ADOPT A RESOLUTION TO APPROVE FINDINGS AND AWARD A THREE-YEAR AGREEMENT
WITH CONSTELLATION NEWENERGY - GAS DIVISION LLC FOR THE PURCHASE OF
NATURAL GAS
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize the City Manager to execute a three-year agreement with Constellation NewEnergy - Gas Division LLC to purchase natural gas.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
Summary
The School Project for Utility Rate Reduction (SPURR) is a Joint Powers Authority (JPA) established to increase the purchasing power of public agencies to reduce costs of natural gas supplied to those agencies. For over 15 years, the City has participated in SPURR to reduce the overall cost of natural gas purchased by the Municipal Utilities Department (MUD) to produce electric power at the Regional Wastewater Control Facility’s (RWCF) Cogeneration Facility. This facility can generate enough electricity to meet nearly half of the daily power demand.
On October 19, 2023, SPURR gave notice that the JPA would no longer provide natural gas commodity retail services. SPURR would instead use a competitive solicitation process to source retail service providers to their participants for consistency with their other programs. In the summer of 2023, SPURR conducted a Request for Qualifications and Proposals (RFQP) for core (small usage) accounts. The RFQP for non-core (large usage) accounts was conducted in the spring of 2024. As a result of this RFQP, Constellation NewEnergy - Gas Division LLC (Constellation) was recommended on May 10, 2024.
Staff recommend entering into a three-year agreement with Constellation for the purchase of natural gas at MUD. The agreement includes several documents for execution: a Master Retail Natural Gas Supply Agreement (Exhibit 1 to the Resolution), three (3) PG&E enrollment forms listing Constellation as our noncore provider (Exhibit 2 to the Resolution), and a Natural Gas Intelligence (NGI) Index indicative transaction confirmation for the period of the agreement (Exhibit 3 to the Resolution).
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DISCUSSION
Background
In 2006, the City Council approved Resolution 06-0320 authorizing natural gas purchases through the SPURR Program, a Joint Powers Authority established to increase the purchasing power of public agencies to reduce costs of natural gas. The City has participated in SPURR, which on average has reduced the overall cost of natural gas purchased by about 20 percent for use at the Regional Wastewater Control Facility’s (RWCF) Cogeneration Facility.
Over the past five years, MUD Wastewater Division has spent the following amounts on natural gas including the required Pacific Gas and Electric transportation charge:
Fiscal Year SPURR
2020 $32,652
2021 $12,714
2022 $82,229
2023 $345,704
2024 $131,440
The year-to-year variations in natural gas purchased from Pacific Gas and Electric was dependent on the amount of anerobic digester gas generated and used during the year.
On October 19, 2023, SPURR notified staff that they would no longer provide natural gas commodity retail services. To align with their other programs, SPURR would instead use a competitive solicitation process to source retail service providers to their participants. In the summer of 2023, SPURR conducted a Request for Qualifications and Proposals (RFQP) for core (small usage) accounts. The RFQP for non-core (large usage) accounts was conducted in the spring of 2024. As a result of this RFQP, Constellation was recommended on May 10, 2024.
Present Situation
Over the past three years, the RWCF used between 95,000 to 150,000 therms (thm) of natural gas per year. This amount is more than in prior years when the usage averaged 75,000 per month. By purchasing natural gas from Constellation, the City will realize cost savings since the rates are expected to remain stable and there is no surcharge or tariff.
To transfer purchasing authority to Constellation as the noncore natural gas provider, several documents need to be executed. These documents include a Master Retail Natural Gas Supply Agreement, three (3) PG&E enrollment forms listing Constellation as our noncore provider, and a Natural Gas Intelligence (NGI) Index indicative transaction confirmation for the period of the agreement. To continue receiving a discounted price on natural gas purchases, staff recommends entering into a three-year agreement with Constellation NewEnergy-Gas Division LLC.
SPURR will continue to conduct RFQPs for natural gas service providers to source retail service providers for their program participants.
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Findings
Stockton Municipal Code Section 3.68.070 provides an exception to the competitive bidding requirements when the City Council approves findings that support and justify the purchase through a cooperative purchasing agreement.
Proposed findings to support this purchase are:
1. SPURR conducted public solicitation for a Request for Qualification and Proposals to determine who to recommend as a provider to their participants.
2. Procurement staff reviewed the RFQP and determined it meets the City’s purchasing requirements.
3. Constellation natural gas customers are offered several pricing plans including a balanced portfolio, which is similar to the terms that were offered by SPURR, a joint powers authority that conducts complex procurements for schools, colleges, and other public agencies.
4. The purchase of natural gas through Pacific Gas and Electric (PG&E) involves volatile pricing scenarios.
5. By purchasing natural gas through Constellation, the City will realize a stable price.
FINANCIAL SUMMARY
The charges for natural gas are paid for by the City and charged to Wastewater Treatment Plant Natural Gas account in the same manner as charges for other PG&E utility services.
There is no impact to the General Fund, or any other unrestricted funds, from this action.
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Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION APPROVING FINDINGS AND EXECUTING A CONTRACT
AGREEMENT WITH CONSTELLATION NEWENERGY – GAS DIVISION LLC FOR
THE PURCHASE OF NATURAL GAS
In 2006, the City Council approved Resolution 06-0320 to switch to the SPURR Program for natural gas purchases. SPURR is a Joint Powers Authority established to increase the purchasing power of public agencies to reduce costs of natural gas supplied to those agencies. For over 15 years, the City has participated in SPURR to reduce the overall cost of natural gas purchased by MUD to produce electric power at the Regional Wastewater Control Facility’s (RWCF) Cogeneration Facility; and On October 19, 2023, SPURR notified staff that they would no longer provide natural gas commodity retail services. to align with other programs offered by SPURR, the JPA would instead use a competitive solicitation process to source retail service providers to their participants. In the summer of 2023, SPURR conducted a Request for Qualifications and Proposals (RFQP) for core (small usage) accounts. The RFQP for noncore (large usage) accounts was conducted in the spring of 2024. As a result of this RFQP, Constellation NewEnergy – Gas Division LLC (Constellation) was recommended on May 10, 2024; and
Over the past three years, the RWCF used 95,000 to 150,000 therms of natural gas per year. This amount is less than in prior years when the usage averaged 75,000 per month. By purchasing natural gas from Constellation, the City will realize cost savings since the rates are expected to remain stable and there is no surcharge or tariff; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council approves findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process for the purchase through a cooperative purchasing agreement:
a. SPURR conducted public solicitation for a Request for Qualification and Proposals to determine who to recommend as a provider to their participants. b. Procurement staff reviewed the RFQP and determined it meets the City’s purchasing requirements.
c. Constellation natural gas customers are offered several pricing plans including a balanced portfolio, which is similar to the terms that were offered by SPURR, a joint powers authority that conducts complex procurements for schools, colleges, and other public agencies.
d. The purchase of natural gas through Pacific Gas and Electric (PG&E) involves volatile pricing scenarios.
e. By purchasing natural gas through Constellation, the City will realize a stable price.
2. The City Manager is hereby authorized to execute a three-year agreement with Constellation NewEnergy – Gas Division LLC and is also directed to execute all other applicable agreements the same, copies of which are attached as Exhibits 1, 2, & 3 and incorporated by this reference.
3. The City Manager or designee is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED August 20, 2024 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
JRS | Non-Standard: SPURR Participant Language | CONFIDENTIAL | CNEG53308 Page - 1 - | Version 12.1.20 ©2020 Constellation NewEnergy – Gas Division, LLC. All rights reserved.
MASTER RETAIL NATURAL GAS SUPPLY AGREEMENT
This Master Retail Natural Gas Supply Agreement (“Master Agreement”) is entered into as of June 13, 2024 (“Effective Date”) by and between City of Stockton (“Customer”) and Constellation NewEnergy – Gas Division, LLC (“CNEG”). CNEG and Customer are sometimes referred to individually as a “Party” and collectively as the “Parties.” This Master Agreement sets forth the general terms and conditions governing transactions for the purchase and sale of natural gas and related products and services (each a “Transaction”) to one or more of Customer’s accounts or facilities (each a “Facility”) as agreed to from time to time. Each Transaction may be evidenced by a transaction confirmation (each a “TC”). The Parties may further agree to implement certain strategies or related services, the specifics of which will be set forth in a rider executed by the Parties (each a “Rider”). Each TC and Rider shall constitute part of and shall be subject to this Master Agreement. This Master Agreement and each TC and Rider shall constitute a single integrated agreement between the Parties (collectively referred to as the “Agreement”). In the event of a conflict between (i) a TC, (ii) a Rider, (iii) the terms and conditions of this Master Agreement, and (iv) any oral agreement of the Parties as to a Transaction, the terms shall govern in the priority listed in this sentence.
The Parties intend that they are legally bound by the terms of each Transaction from the moment each Party agrees to those terms, whether (i) via electronic transmission, (ii) written record, or (iii) orally. Nothing in this Agreement obligates either Party to enter into a Transaction at any time. Any applicable requirement that a Transaction be “in writing” and “signed” shall be deemed to have been satisfied by this Master Agreement, by the Parties’ signatures below and their express agreement to these procedures. CNEG shall have the exclusive right to confirm any Transaction by sending Customer a written TC, substantially in the form attached hereto as Exhibit A or otherwise, by facsimile, e-mail or other means. Notwithstanding any provision to the contrary in this Master Agreement, failure to send a TC shall not invalidate a Transaction agreed to by the Parties. If CNEG sends a TC and Customer fails to object in writing to any term in the TC within two (2) Business Days, the TC shall constitute the definitive written expression of the Transaction. “Business Day” means any day except a Saturday, Sunday, or a Federal Reserve Bank holiday and shall open at 8:00 a.m. and close at 5:00 p.m. Eastern Prevailing Time.
1. CNEG and Customer Obligations.
Natural Gas Supply. CNEG shall sell and supply, and Customer shall purchase and receive, the Contract Quantity for each Facility identified in a TC or Rider. “Contract Quantity” means the quantity of gas to be delivered and received pursuant to a TC. Such deliveries and receipts of natural gas shall be on a Firm, Secondary Firm or Interruptible basis, or otherwise as described in a TC. “Firm” means deliveries and receipts may not be interrupted without liability except for reasons of Force Majeure. “Secondary Firm” means deliveries and receipts will be on a commercially reasonable efforts basis up to Customer’s maximum daily quantity and performance may be interrupted without liability to the extent that one or more of the following conditions are present: (i) Force Majeure; (ii) curtailment by the local distribution company owning and/or controlling and maintaining the distribution system required for delivery of gas to the Facility(ies) (the “Utility”); (iii) curtailment of supply by a natural gas supplier; (iv) curtailment of storage by a storage provider; (v) curtailment of transportation by a gas gathering or pipeline company, or Utility (each a “Transporter”), transporting gas for CNEG or Customer downstream or upstream of the Delivery Point(s), including, but not limited to, transportation between secondary firm points; (vi) recall of transportation capacity release by its releaser; or (vii) curtailment of gas production behind a specific meter. “Interruptible” means deliveries and receipts may be interrupted at any time for any reason except for Customer’s obligation to take and pay for gas it nominates and CNEG’s obligation to honor the price set forth in the TC.
The terms of any Transaction between CNEG and Customer shall be as set forth on the applicable TC, but CNEG will procure gas from its suppliers on terms CNEG deems appropriate. CNEG holds title to the gas and has the sole responsibility to deliver, or cause to be delivered, the natural gas to the applicable Delivery Point. Title shall pass to Customer at the Delivery Point and Customer shall have the sole responsibility for transporting the gas from the Delivery Point. “Delivery Point” means the city gate interconnection between the Utility and the upstream Transporter or such other delivery point(s) as are agreed in a TC. However, to the extent that Customer owned transportation capacity is used to deliver natural gas to the Customer, the Delivery Point shall be the receipt point of such capacity.
Failure to Deliver or Receive. The sole and exclusive remedy of the Parties in the event of a breach of an obligation to deliver or receive gas shall be the following: (a) If CNEG fails to deliver gas (other than Interruptible) for a reason other than Customer’s breach, CNEG shall pay Customer the “Replacement Cost,” which is the amount Customer actually pays to replace the undelivered Contract Quantity less the amount Customer would have paid under this Agreement for such Contract Quantity. (b) If Customer fails to receive gas (other than Interruptible) for a reason other than CNEG’s breach, Customer shall pay CNEG the “Revenue Loss,” which is the amount that CNEG would have received for the sale of the unreceived Contract Quantity pursuant to this Agreement less (i) the amount actually received by CNEG in an alternate sale, plus any incremental costs, or (ii) if no alternate sale takes place, the amount CNEG would have received by reselling such Contract Quantity at spot market prices at or near the Delivery Point(s), as determined by CNEG in a commercially reasonable manner.
CNEG and Customer shall exercise commercially reasonable efforts to mitigate any Revenue Loss or Replacement Cost, respectively. If the calculation of the Replacement Cost or Revenue Loss results in a negative number, then the amount shall be deemed to equal zero.
Nominations. The Parties shall coordinate nomination activities, giving sufficient time to meet the deadlines of the affected Transporter(s). If Customer or the Utility fails to provide CNEG with a usage nomination for any month in a timely manner, CNEG (i) may establish a nomination for such month in a commercially reasonable manner based on Customer’s historical usage data available to CNEG, and (ii) shall have the right to use and rely on such nomination unless notified otherwise by Customer or the Utility. If a Party becomes aware that actual deliveries are greater or lesser than the quantity of gas confirmed by a Transporter for movement, transportation or management, the Party shall promptly notify the other Party. Usage nominations may be made orally, in writing, by facsimile or by electronic means.
Imbalances. The Parties shall use commercially reasonable efforts to avoid imposition of any fees, penalties, cash-outs, costs or charges (in cash or in kind) assessed by a Transporter for failure to satisfy balancing and/or nomination requirements (“Imbalance Charges”). If either Party receives an invoice from a Transporter that includes Imbalance Charges, the Parties shall determine the validity and cause of such Imbalance Charges. The Party causing the imposition of the Imbalance Charges will be responsible to pay such Imbalance Charges.
Transporter Restrictions. If either Party receives an operational flow order or any other usage or operating instructions, restrictions or similar notice (each an “OFO”) from a Transporter requiring action to be taken in connection with the flow and/or consumption of gas covered by this Agreement, such party will use commercially reasonable efforts to notify the other party of such event in a timely manner. Such notice may be given by electronic means. Each Party will take all commercially reasonable actions required by the OFO within the time prescribed. If OFO penalties, charges, fees, costs or expenses result from the actions or inactions of one Party, then such Party shall be solely responsible for any such penalties, charges, fees, costs or expenses. Both parties agree that OFOs may require one or both parties to buy or sell gas quantities in the then-current market conditions, which may be appreciably higher or lower than the original pricing. If CNEG is responsible EXHIBIT 1
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2. Term of Master Agreement. The term of this Master Agreement will commence on the Effective Date and, unless terminated earlier as provided in this Master Agreement, will continue until terminated by either Party upon thirty (30) days prior written notice to the other Party; provided any TC or Rider will continue to be governed by this Master Agreement until the TC or Rider has been separately terminated or expired.
Term of TC. Each TC or Rider shall set forth the applicable “Delivery Period” or term during which deliveries of natural gas are to be made and/or services are to be provided. CNEG shall not be liable for any failure to enroll or drop a Facility by any applicable start and end date(s) set forth in the TC or Rider due to circumstances beyond its control.
3. Information and Authorization. Customer hereby authorizes CNEG to take such actions CNEG deems necessary to enroll each Facility with the Utility and to be served by CNEG and to otherwise meet CNEG’s obligations under the Agreement, including executing on Customer’s behalf any documents necessary to effectuate any Facility enrollment or election, undertaking the management of any storage or transportation capacity allocated to Customer by the Utility or other transporters, disposing of storage balances, adding or deleting Facility(ies) as necessary, receiving usage nominations from the Utility relating to Customer’s natural gas requirements, and other similar documents.
Customer’s signature on this Master Agreement constitutes Customer’s written authorization for CNEG to obtain from time to time from the applicable Utility all current and historical natural gas billing, usage data and other related information. Customer shall take any actions, execute any documents and shall provide to CNEG any information as CNEG may reasonably require.
4. Billing and Payment.
Billing. Customer will be billed for natural gas usage and related products and services supplied under the Agreement in one of the following ways based on availability and eligibility of each Facility, which may change from time to time: (a) Dual Billing: Customer will receive two invoices, one from CNEG for the natural gas supply and one from the Utility for the amounts payable by Customer for services provided by the Utility (“Delivery Charges”); (b) CNEG Consolidated Billing: Customer will receive one invoice from CNEG that includes both the natural gas supply charges and the Delivery Charges. In the case of CNEG Consolidated Billing, Customer agrees that (i) Customer remains exclusively liable to the Utility for all Delivery Charges, (ii) CNEG has no obligation to review Delivery Charges for accuracy, (iii) should Customer dispute Delivery Charges, that is a matter for Customer and the Utility to resolve without any involvement or obligation on the part of CNEG, and (iv) CNEG may withhold any payments due to the Utility if Customer fails to pay CNEG invoices in accordance with this Master Agreement.
Taxes. Customer shall pay all federal, state, municipal and local taxes, duties, fees, levies, premiums or other charges imposed by any governmental authority, directly or indirectly, on or with respect to the natural gas and related products and services provided under the Agreement, including without limitation any production, severance or ad valorem taxes, and including any taxes enacted after the Effective Date (collectively, “Taxes”). The term “Taxes” shall include any amounts imposed on Customer directly or on CNEG in its function as Customer’s supplier, and that are associated with the supply of gas to Customer (in which case the Customer shall be responsible to reimburse CNEG for such amounts). IF CUSTOMER IS EXEMPT FROM ANY TAXES, CUSTOMER SHALL PROVIDE CNEG WITH ANY STATE AND/OR LOCAL EXEMPTION CERTIFICATE OR APPLICABLE DOCUMENTATION PRIOR TO THE ISSUE DATE OF CUSTOMER’S FIRST INVOICE. All Taxes invoiced to Customer under this Agreement will be included on the invoice or in the applicable fixed price as allowed by Law.
Estimates. CNEG’s ability to invoice Customer is dependent on the Transporter’s ability to furnish CNEG with all necessary information, including Customer’s metered usage. When there is a delay in receiving information from the Transporter, CNEG will, to the extent necessary, estimate charges and credits for a billing period and reconcile such estimates against actual charges and credits in a future invoice(s). Each invoice is also subject to adjustment for errors in arithmetic, computation, meter readings or other errors. Interest shall not accrue on such adjustments.
Payment. All amounts set forth in an invoice are payable to the Party issuing the invoice and will include, in addition to the natural gas supply charges, Delivery Charges, and Taxes, all other amounts related to the purchase and delivery of natural gas. CNEG’s invoices will be sent to Customer in accordance with CNEG’s normal billing cycle, as adjusted from time to time. CNEG’s invoices are due and payable 25 days after the date of invoice, or such other date as set forth in a Rider (the “Payment Date”) without offset or reduction of any kind, to the address set forth on the invoice. Invoices not paid on or before the Payment Date will accrue interest daily on outstanding amounts from the Payment Date until paid in full, at the lesser of 1.5% per month or the highest rate permitted by law.
Pricing Structures. “Contract Price” means the price for gas as set forth in the applicable TC or Rider. To the extent (a) there are beginning of the month nominated volumes where the price is not fixed, (b) a Facility requires additional natural gas quantities in excess of the nominated or fixed quantities set forth in a TC or Rider, or (c) a Facility continues to receive natural gas from CNEG beyond the Delivery Period (where such deliveries will be considered month to month), all such natural gas will be priced at Market Price unless otherwise set forth in a TC or Rider. “Market Price” means a price comprised of (i) the spot commodity cost of gas as determined by CNEG in its reasonable discretion, (ii) all related interstate and intrastate pipeline charges required to deliver gas to the Delivery Point, and (iii) a reasonable market based margin. Market Price does not include any applicable Utility charges, including but not limited to Utility or pipeline balancing charges, unless otherwise agreed upon.
Market Disruption. If the Contract Price is based in whole or in part upon a specified index and a Market Disruption Event occurs on a day on which the relevant source published or was to publish the relevant price, then the Parties shall negotiate in good faith to agree on an alternative method of determining the Contract Price. A “Market Disruption Event” is any one of the following: (a) failure of the specified index to announce or publish information necessary for determining the Contract Price; (b) the failure of trading to commence or the permanent discontinuation or material suspension of trading in the relevant options contract or commodity on the exchange or market acting as the specified index; (c) the temporary or permanent discontinuance or unavailability of the index; (d) the temporary or permanent closing of any exchange acting as the specified index; or (e) a material change in the formula for or the method of determining the relevant price component.
Price Locks. Unless otherwise set forth in a TC or a Rider, Customer can request to lock in the commodity price for any month(s) at any time during the Delivery Period, prior to 12:00 p.m. EST/EDT on the final day of NYMEX last day settlement for each applicable delivery month.
Commodity purchase/sale prices exclude pipeline and Utility distribution charges. Customer also has the right to lock basis at a fixed price and at predetermined volumes. Basis includes interstate and intrastate pipeline transportation but does not include the commodity cost or the Delivery Charges.
EXHIBIT 1
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5. Adequate Assurance. If CNEG has reasonable grounds: (i) to believe that Customer’s creditworthiness has become unsatisfactory; or (ii) for insecurity with respect to Customer’s performance under the Agreement, CNEG may demand, in writing, adequate assurance of future performance from Customer in a form, in an amount, from an issuer, and for a term, all as reasonably satisfactory to CNEG (“Adequate Assurance”). To satisfy a demand, Customer shall provide Adequate Assurance to CNEG within three (3) Business Days of the date of the written demand. If at any time CNEG requires Customer to prepay for gas, then (i) CNEG shall be under no obligation to deliver gas if Customer fails to pay any prepayment by its due date, and (ii) in the event the aggregate cost of any quantities of gas required by Customer in a month in excess of the scheduled nominated quantities exceeds $15,000.00, Customer shall pay CNEG the aggregate cost of such quantities within three (3) Business Days of CNEG’s request for payment.
6. Event of Default. An "Event of Default" means any one of the following: (a) Customer’s failure to make, when due, any payment required under the Agreement if not paid within five (5) Business Days (or such longer period required by applicable law) following written notice to Customer that a payment is past due; (b) any representation or warranty made by a Party in the Agreement is false or misleading in any material respect when made or ceases to remain true in all material respects during the term of the Agreement, if not cured within five (5) Business Days after written notice from the other Party; (c) Customer fails to provide the Adequate Assurance as provided in this Agreement; (d) the failure by a Party to perform any material obligation set forth in this Agreement (other than the events that are otherwise specifically covered as a separate Event of Default hereunder or a failure to deliver or receive gas) which is not cured within five (5) Business Days after receipt of written notice thereof; or (e) a Party: (i) makes an assignment or any general arrangement for the benefit of creditors; (ii) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed for it or any substantial portion of its property or assets (iii) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar law for the protection of creditors, or has such petition filed against it; (iv) otherwise becomes bankrupt or insolvent (however evidenced); (v) is unable to pay its debts as they fall due; or (vi) is dissolved (other than pursuant to a consolidation, amalgamation or merger).
7. Remedies Upon Event of Default. If an Event of Default occurs with respect to a Party (the “Defaulting Party”), the other Party (the “NonDefaulting Party”) may, in its discretion, at any time, (i) withhold any payments or suspend any deliveries hereunder and/or (ii) terminate the Agreement in whole or solely with respect to those Facility(ies) adversely affected by such Event of Default, upon written notice to the Defaulting Party setting forth the effective date of termination (the “Early Termination Date”). The Early Termination Date for any Facility located in New Jersey shall be no less than thirty (30) calendar days from the date of written notice of termination. Further, if Customer is the Defaulting Party, then CNEG may, without waiving any rights or remedies it may have, to the extent applicable, remove Customer from CNEG’s managed balancing and/or storage pools and/or apply any storage balance at prevailing market prices as an offset against the amount owed to CNEG by Customer. If this Agreement is terminated, the Non-Defaulting Party will in good faith calculate a termination payment as set forth below and the owing Party shall pay such amount within three (3) Business Days of receipt of notice of the amount due.
The Parties acknowledge and agree that any termination payment under the Agreement constitutes a reasonable approximation of harm or loss, and is not a penalty or punitive in any respect. The remedies under this Section 7 are the sole and exclusive remedies of the NonDefaulting Party with respect to the occurrence of any Event of Default.
As of the Early Termination Date, the Non-Defaulting Party shall determine: (i) the difference between the Contract Value and the Market Value, such that the difference shall be due to the Customer if the Market Value exceeds the Contract Value and to CNEG if the opposite is the case; (ii) the Non-Defaulting Party’s Costs; and (iii) the amount owed (whether or not then due) by each Party with respect to all gas delivered and received. The Non-Defaulting Party shall net or aggregate, as appropriate, any and all amounts owing between the Parties under this Section, so that all such amounts are netted or aggregated to a single liquidated amount payable by one Party to the other. “Costs” means, with respect to the Non-Defaulting Party, brokerage fees, commissions and other similar transaction costs and expenses reasonably incurred by such Party as a result of the Event of Default. The “Contract Value” shall be the Contract Price multiplied by the amount of gas, as determined by the Non-Defaulting Party, that would have been delivered under each terminated Rider or TC, had it not been terminated early (the “Terminated Volumes”). The “Market Value” shall be the amount, as of the Early Termination Date, a third party would pay for the Terminated Volumes at the Delivery Point(s) at current market prices. The Non-Defaulting Party may determine the Market Value of a terminated transaction by reference to information either available to it internally or supplied by one or more third parties including, without limitation, any or all of the settlement prices of NYMEX gas futures contracts, quotations from leading dealers, energy swap agreements or physical gas trading markets, similar sales or purchases, and any other bona fide offers from either third parties or affiliates of the Party, all as commercially available to the Party and adjusted for the length of the term and differences in transportation costs and other factors, as the Party reasonably determines. The Non-Defaulting Party shall not be required to enter into a replacement transaction in order to determine or be entitled to a termination payment.
8. Change in Law. CNEG may pass through or allocate, as the case may be, to Customer any increase or decrease in CNEG’s costs related to the natural gas and related products and services sold to Customer that results from the implementation of new, or changes (including changes to transportation rates) to existing, Laws, or other requirements or changes in administration or interpretation of Laws or other requirements. “Law” means any law, rule, regulation, ordinance, statute, judicial decision, administrative order, Transporter business practices or protocol, Transporter tariff, or rule of any commission or agency with federal jurisdiction or jurisdiction in the state in which the Facility(ies) is located. Such adjusted amounts will be included in subsequent invoices to Customer.
9. Representations and Warranties. Each Party warrants and represents to the other (now and deemed repeated by each Party on each date on which a TC or Rider is executed or deemed accepted) that: (i) it is duly organized, validly operating and in good standing under the laws of the jurisdiction of its formation; (ii) it is authorized and qualified to do business in the jurisdictions necessary to perform under the Agreement; (iii) execution, delivery and performance of the Agreement are duly authorized and do not violate any governing documents or any of its contracts or any applicable Law; (iv) there is no material event(s) or agreement(s) which would impair that Party’s right, authority or ability to execute the Agreement and otherwise perform under the Agreement; and (v) it has the knowledge and experience to evaluate the merits and risks associated with the Agreement.
Furthermore, Customer warrants, represents and covenants that: (i) the data given and representations made concerning its Facility(ies) are true and correct; (ii) it is entering into this Agreement to purchase its natural gas requirements only and not for speculative or resale purposes; and that the natural gas purchased under this Agreement will be consumed at the Facility(ies); (iii) it is the party of record of the Facility(ies), or if it is not the party of record, it has the authority to enter into and bind its principal to the Agreement; (iv) if any Transaction hereunder gives Customer the right to adjust the Contract Quantity, or to require CNEG to provide some other quantity of gas, Customer’s election to exercise such right is based predominantly on supply and demand factors related to Customer’s business; and (v) if Customer is a Governmental Entity, it will not claim immunity on grounds of sovereignty or similar grounds from enforcement of the Agreement. If it is a Governmental Entity, Customer covenants to obtain all necessary budgetary approvals, appropriations and funding for all of its obligations under this EXHIBIT 1
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Agreement, the failure of which shall not be an excuse for Governmental Entity’s performance or failure to perform hereunder and upon request will provide proof of such authority. “Governmental Entity” means a municipality, county, governmental board, governmental department, commission, agency, bureau, administrative body, joint action agency, court or other similar political subdivision (including public school districts or special purpose district or authority), or public entity or instrumentality of the United States or one state.
10. Force Majeure. Notwithstanding any other provision of this Agreement, where a Party is unable to carry out any obligation under the Agreement due to a Force Majeure event (other than a payment obligation, which will not be excused for Force Majeure), the Agreement will remain in effect but such obligation will be suspended for the period necessary as a result of the Force Majeure, provided that: (i) the Claiming Party gives the other Party, as soon as possible, written notice describing the particulars of the Force Majeure; (ii) the suspension of performance is of no greater scope and of no longer duration than is required by the Force Majeure; and (iii) the Claiming Party uses commercially reasonable efforts to remedy its inability to perform. “Force Majeure” means an event that is not within the reasonable control of the Party claiming Force Majeure (“Claiming Party”), and that by the exercise of due diligence, the Claiming Party is unable to overcome the event in a commercially reasonable manner, and such event will not be deemed a breach or default under the Agreement. Force Majeure includes, but is not limited to, acts of God; fire; war; terrorism; flood; earthquake; civil disturbance; sabotage; facility failure; strike; curtailment, disruption or interruption of supply by a supplier or distribution or transportation by a Transporter (including without limitation as the result of an OFO); declaration of emergency by a Transporter(s); regulatory, administrative, or legislative action, or action or restraint by court order or governmental authority; or any act or omission of a third party not under the control of the Claiming Party (including without limitation the Utility).
11. Indemnification. Before title passes to Customer at the Delivery Point CNEG shall, and after title passes at the Delivery Point Customer shall, defend, indemnify and hold harmless the other Party and all its affiliates, and all of their respective officers, directors, shareholders, associates, employees, agents, representatives, successors and assigns, from and against all claims, losses, expenses (including reasonable attorneys’ fees and court costs), damages, demands, judgments, causes of action or suits of any kind, including but not limited to, claims for personal injury, death, or property damage, to the extent arising out of or related to this Agreement (“Claims”).
12. LIMITATION OF LIABILITY. NOTWITHSTANDING ANY OTHER PROVISION OF THE AGREEMENT TO THE CONTRARY, THE ENTIRE
LIABILITY OF EACH PARTY FOR ANY AND ALL CLAIMS WILL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY, SUBJECT IN ALL
CASES TO AN AFFIRMATIVE OBLIGATION ON THE PART OF EACH PARTY TO MITIGATE ITS DAMAGES, AND NEITHER PARTY WILL
BE LIABLE FOR ANY CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES, INCLUDING, WITHOUT
LIMITATION, LOST OPPORTUNITIES OR LOST PROFITS NOT CONTEMPLATED BY THE TERMINATION CALCULATION IN SECTION 7 ABOVE. Customer acknowledges and agrees that the Utility is exclusively responsible for the gas distribution and delivery system, that CNEG has no independent control over the Utility’s systems and will have no liability for any of the Utility’s acts or omissions.
13. DISCLAIMER. CUSTOMER ACKNOWLEDGES AND AGREES THAT NO WARRANTY, DUTY, OR REMEDY, WHETHER EXPRESSED,
IMPLIED, OR STATUTORY, IS GIVEN OR INTENDED TO ARISE OUT OF THIS AGREEMENT EXCEPT AS OTHERWISE EXPRESSLY
STATED HEREIN, AND CNEG SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.
14. Waiver and Severability. Failure to provide notice of, or object to, any default under this Agreement will not operate or be construed as a waiver of any future default, whether like or different in character. If any portion of this Agreement, or application thereof to any person or circumstance, is held legally invalid, the remainder will not be affected and will be valid and enforced to the fullest extent permitted by law and equity, and there will be deemed substituted for the invalid provisions such provisions as will most nearly carry out the mutual intent of the Parties as expressed in this Agreement to the fullest extent permitted by applicable Law; provided, however, that this severability provision will not be applicable if any provision of Sections 6 and 7 of this Master Agreement (or any definition or provision in this Agreement to the extent it relates to, or is used in connection with, such sections) is held invalid or unenforceable.
15. Assignment. Customer may assign all its rights and obligations under this Agreement; provided (a) it gives CNEG forty-five (45) days prior written notice of its intent to do so; (b) the assignee satisfies in full CNEG’s credit requirements; (c) the assignee assumes in writing all of Customer’s obligations under the Agreement; and (d) Customer continues to be liable for performance, including payment for goods and services received, prior to the assignment date. CNEG may assign, sell, pledge, transfer, or encumber any of its rights and obligations under this Agreement or the accounts, revenues, or proceeds hereof to: (a) a bank, insurer or other financial institution; or (b) any person or entity (i) succeeding to all or substantially all of CNEG’s assets or business or the division or region of CNEG to which this Agreement relates or (ii) into which CNEG is merged or otherwise combined or reorganized; provided (with respect to this clause (b)) the succeeding entity agrees to be bound to the Agreement; or (c) any affiliate of CNEG.
16. Confidentiality. Each Party agrees to keep all terms and provisions of this Agreement and all communication provided in connection with this Agreement, including the pricing offered to Customer, confidential to the extent not otherwise publicly available and not to disclose them to any third parties without the prior written consent of the other Party, except as necessary to perform its obligations under this Agreement or as otherwise required by Law. Each Party may disclose such information to its affiliates and to its affiliates’ employees, agents, advisors, and on a need to know basis, to its independent contractors, provided each such recipient agrees to hold such information in the strictest confidence. CNEG may disclose information respecting Customer to third parties that are representing Customer in the purchase of gas or related services. Furthermore, CNEG may make such other disclosures to third parties of information, including aggregate consumption data, provided they are in a manner that cannot be reasonably expected to specifically identify Customer. If disclosure of confidential information is sought through a court, or a state or federal regulatory agency or other legal compulsion, the Party receiving such request will notify the other Party immediately to afford it the opportunity to oppose such disclosure via a protective order or other relief as may be available and will provide reasonable support.
17. Choice of Law, Venue, Attorney Fees and Expenses. This Agreement will be governed and interpreted in accordance with the laws of the State of California, without giving effect to conflict of law principles. TO THE EXTENT ALLOWED BY APPLICABLE LAW, EACH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY OR TO
INITIATE OR BECOME A PARTY TO ANY CLASS ACTION CLAIMS IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. If either Party pursues court action to enforce its rights under this Agreement, the non-prevailing Party shall promptly reimburse the prevailing Party for all its reasonable attorney fees, expenses and costs.
18. Miscellaneous. The Agreement embodies the Parties’ entire agreement and understanding and may not be contradicted by any prior or contemporaneous oral or written agreement. Notwithstanding any provision to the contrary in a prior agreement, the Parties agree that this Master Agreement shall supersede and replace all prior written and oral agreements or arrangements between the Parties with respect to the EXHIBIT 1
JRS | Non-Standard: SPURR Participant Language | CONFIDENTIAL | CNEG53308 Page - 5 - | Version 12.1.20 ©2020 Constellation NewEnergy – Gas Division, LLC. All rights reserved. purchase and sale of gas and related services and that all transactions under any such prior agreement(s) are, as of the Effective Date, now governed solely by the terms of this Master Agreement and shall be Transactions hereunder and a part of the single integrated agreement between the Parties. A facsimile or e-mailed copy of either Party’s signature will be considered an original for all purposes under this Agreement, and each Party will provide its original signature upon request. No purchase order, or any amendment or edit to this Agreement, will be valid or given any effect unless signed by both Parties or expressly contained in a TC deemed accepted pursuant to the procedures set forth herein. The applicable provisions of this Agreement will continue in effect after termination or expiration hereof to the extent necessary, including but not limited to providing for final billing, billing adjustments and payments, limitations of liability, the forum and manner of dispute resolution, and with respect to any indemnification obligations under the Agreement. The section headings used in this Master Agreement are for reference purposes only and will in no way affect the meaning of the provisions of the Master Agreement. The Parties acknowledge that any document generated by the Parties with respect to this Agreement, including this Agreement, may be imaged and stored electronically and such imaged documents may be introduced as evidence in any proceeding as if such were original business records and neither Party shall contest their admissibility as evidence in any proceeding. The rights, powers, remedies and privileges provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by Law. CNEG shall have the right to set-off and net against any amounts owed to it under the Agreement, including without limitation any early termination payment, any amounts owed by CNEG to Customer under the Agreement or any other agreement between the Parties, including without limitation any Adequate Assurance. Except for Section 11 above, no third party will have any rights under this Agreement whatsoever and Customer will be fully responsible for any compensation owing any third party representing Customer in connection with this Agreement and will indemnify, defend and hold harmless CNEG from all related Claims. To the extent Customer is represented by a broker, agent, association or other third party (collectively, “Broker”), Customer acknowledges and understands that: (i) CNEG may be making a payment to Broker in connection with Broker’s efforts to facilitate Customer and CNEG entering into a Transaction; (ii) unless otherwise noted, the Contract Price reflects the fee, if any, paid to Broker, and (iii) Broker is acting on Customer’s behalf as Customer’s representative and is not a representative or agent of CNEG. Customer further authorizes CNEG to utilize Customer’s name for publicity and marketing purposes.
19. Affirmation; Acknowledgements. Customer affirms that it has read this Agreement in its entirety and it agrees to the terms and conditions contained herein. Any ambiguity or question of intent or interpretation under this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring either Party by virtue of the authorship of any of the provisions of this Agreement. The Parties acknowledge and agree that: (i) CNEG is an independent contractor under this Agreement and except as otherwise explicitly provided in this Agreement, neither Party has the authority to execute documents that purport to bind the other, and nothing in this Agreement will be construed to constitute a joint venture, fiduciary relationship, partnership or other joint undertaking; (ii) TCs and Riders entered into hereunder will constitute “forward contracts” and/or “swap agreements” under the U.S. Bankruptcy Code, as amended, the rights of the Parties under Section 7 above will constitute contractual rights to liquidate them, and the Parties are entities entitled to the rights and protections afforded to “forward contracts” and “swap agreements” by the U.S. Bankruptcy Code; (iii) CNEG is not Customer’s consultant or advisor for any purpose including advice regarding the value or advisability of trading in “commodity interests” as defined in the Commodity Exchange Act, 7 U.S.C. §§ 1-25, et seq., as amended (the “CEA”), including futures contracts and commodity options or any other activity which would cause CNEG or any of its affiliates to be considered a commodity trading advisor under the CEA; (iv) each Party is an “eligible contract participant” as that term is defined in the CEA; and (v) Customer is making its own decisions based solely upon its own analysis and the advice of its own advisors, if any.
20. Notices. To be effective, all notices, including termination notices, must be in writing delivered by hand, by certified mail return receipt requested, by first class mail, or express carrier or emailed to the addresses provided in this Agreement. CNEG shall send invoices and TCs to the notice address provided herein unless otherwise directed by Customer. Notice by hand delivery shall be effective on the date it is delivered. Notice by certified mail, return receipt requested, by first class mail, express carrier, or email shall be effective on the date that mail is delivered or its delivery is attempted. A Party may change its address by providing notice of change in accordance herewith or by other means agreed by the Parties.
21. SPURR Participation. The School Project for Utility Rate Reduction (“SPURR”) has made an award to CNEG pursuant to a competitive solicitation and Customer is contracting with CNEG on account of that award. SPURR is authorized to receive detailed usage, account, invoicing, copies of the Agreement and related transaction documents, and payment information from CNEG, including reports referenced in the competitive solicitation and any information provided by the Utility to CNEG related to Customer’s accounts. Customer shall determine for itself the suitability of any rate plan offered by CNEG for Customer’s needs. Prices offered to Customer will be inclusive of a SPURR administrative fee payable by CNEG to SPURR for each MMBtu of gas sold by CNEG to Customer, including extensions or renewals while Customer is affiliated with SPURR. Customer shall notify CNEG should Customer decide to discontinue its affiliation with SPURR.
CNEG Notice Information
9400 Bunsen Parkway, Suite 100
Louisville, KY 40220
Attention: Contracts Administration
Phone: (502) 426-4500
Facsimile: (502) 214-6381
Email: #[email protected]
Customer Notice Information
Legal Notice Information
Attention: Kathryn Garcia
Title: Program Manager III - Wastewater
Address: 2500 Navy Drive, Stockton, CA 95206
Phone: 209-937-8232 Facsimile: 209-871-7735
Email: [email protected]
For Invoices (if different from Notice Information)
Attention: Accounts Payable Vendor Self-Service
Title:
Address: 425 North El Dorado Street, Stockton, CA 95202 Phone: (209) 937-8357 Facsimile:
Email: [email protected]
For Transaction Confirmations (if different from Notice Information) Attention: Kathryn Garcia
Title: Program Manager III - Wastewater
Address: 2500 Navy Drive, Stockton, CA 95206
Phone: 209-937-8232 Facsimile: 209-871-7735
Email: [email protected]
(SIGNATURES FOLLOW ON NEXT PAGE)
EXHIBIT 1
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IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS DOCUMENT THROUGH THEIR DULY AUTHORIZED REPRESENTATIVES.
CNEG Sign: ______________ _______________
Print Name: Amanda Stewart
Print Title: Vice President - Retail Ops
CUSTOMER Sign: _______________
Print Name:
Print Title:
*CustomerSignerTitle1
*CustomerSignature1
*CustomerSignerName1
EXHIBIT 1
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EXHIBIT A – FORM OF TRANSACTION CONFIRMATION*
*The actual Transaction Confirmation entered into between Customer and CNEG may differ from this form to reflect state regulatory and other local requirements and terms applicable to the Facility. This Form of Transaction Confirmation is for illustrative purposes only and CNEG reserves the right to alter its form of Transaction Confirmation at any time.
This Transaction Confirmation is delivered pursuant to and in accordance with a Master Retail Natural Gas Supply Agreement effective __________________, 20__ (the “Master Agreement”), by and between Constellation NewEnergy – Gas Division, LLC (“CNEG”) and ______________ (“Customer”), and is subject to and made part of the terms and conditions of such Master Agreement. Capitalized terms used herein but not defined will have the meanings ascribed to them in the Master Agreement.
Trade Date:
Buyer:
Seller:
Facility Name:
Delivery Period:
Nature of Parties’ Obligation:
Deal Type:
Contract Quantity/Price:
Month/Yr Contract Quantity (in MMBtu) Contract Price
US$ Rounded to four decimal places
Plus applicable taxes
Incremental Pricing:
Delivery Point(s):
Utility:
Default Service: To the extent a Facility continues to receive gas from CNEG beyond the Delivery Period, all such gas will be considered month to month purchases and will be priced at the Market Price.
Special Provisions:
This Transaction Confirmation documents an agreement previously reached by authorized representatives of the Parties.
Unless disputed by Customer in writing within two (2) business days of Constellation’s execution date, or such time frame as specified in the Master Agreement, it is binding and shall be deemed accepted.
CONSTELLATION NEWENERGY – GAS DIVISION, LLC CUSTOMER
By: By: SAMPLE
Name: Name: NOT FOR EXECUTION
Title Title
Date: Date:
EXHIBIT 1
NONCORE BALANCING AGGREGATION AGREEMENT
EXHIBIT A
CUSTOMER BALANCING AGENT SERVICE AUTHORIZATION
Automated Document – Preliminary Statement Part A Page 1 of 2 Form No. 79-869-A
Advice-3343-G/4141-E
November 2012
1. Customer requests gas balancing services from Pacific Gas and Electric Company (PG&E) and authorizes the Party listed below to act as Customer’s Balancing Agent for the purpose of acting on behalf of Customer in complying with all applicable PG&E tariffs, and administering, managing, and complying with all applicable balancing, capacity allocation and constraint obligations, rights, noncompliance charges, cash-out payments, and credits related to Customer’s PG&E account as specified in this Exhibit A.
2. This Exhibit A, when executed, appoints the Balancing Agent to act on Customer’s behalf, and is attached to and made part of the Noncore Balancing Aggregation Agreement (NBAA) executed by Balancing Agent and PG&E. This Exhibit A shall apply the provisions of the NBAA to Customer’s account, in aggregation with other Customers for whom Balancing Agent acts under this NBAA.
3. This Exhibit A shall be effective the first calendar day of the month following receipt by PG&E unless a later date beginning on the first calendar day of the month is specified herein. This Exhibit A will continue on a month-to-month basis unless canceled by PG&E as specified in gas Rule 25, or until the effective date of an Exhibit B to the NBAA, submitted to PG&E and executed by Customer or Balancing Agent.
4. Communications will be sent to the addresses listed under the Communications section of the NBAA.
The addresses listed in the NBAA do not replace the current billing address on the Customer’s PG&E account.
5. Under this Exhibit and NBAA, the Customer authorizes PG&E to release to Balancing Agent by written or electronic transfer, the current and historical gas usage information for PG&E accounts referenced in this Exhibit. The Customer agrees to release, hold harmless, and indemnify PG&E from any liability, claims, demands, causes of action, damages, or expenses resulting from any unauthorized use of this information.
6. The Customer requests that Balancing Agent provide services on behalf of Customer for the following PG&E gas account pursuant to the NBAA. Customer acknowledges that Balancing Agent may also provide such services for other Customers under separate NBAAs.
7. To terminate this Exhibit A, an Exhibit B must be executed and submitted to PG&E by either, but not necessarily both, the Customer or Balancing Agent. Customer and Balancing Agent agree that upon termination of this Exhibit A, they shall be responsible for resolving between themselves any outstanding disputes related to the service and obligations set forth or referenced in the Exhibit A and the NBAA. Once termination is effective, the Customer shall assume all responsibility for all service and for all obligations arising under gas rate Schedule G-BAL, gas Rule 14, and other applicable PG&E gas tariffs.
EXHIBIT 2
NONCORE BALANCING AGGREGATION AGREEMENT
EXHIBIT A
CUSTOMER BALANCING AGENT SERVICE AUTHORIZATION
Automated Document – Preliminary Statement Part A Page 2 of 2 Form No. 79-869-A
Advice-3343-G/4141-E
November 2012
This Exhibit A shall be effective the first calendar day of ______________________ (Month/Year)
CUSTOMER
Customer Name: _____________________________________________________ Signature: _____________________________________________________ Printed Name: _____________________________________________________ Transportation ID Number: _____________________________________________________ Service Address: _____________________________________________________ Date: _____________________________________________________ Telephone Number: _____________________________________________________
BALANCING AGENT
Company Name: _____________________________________________________ Marketer ID: _____________________________________________________ Signature: _____________________________________________________ Printed Name: _____________________________________________________ Date: _____________________________________________________ Telephone Number: _____________________________________________________ Please return this authorization to PG&E via the facsimile number or e-mail listed below:
Attention: California Gas Transmission, Contract Administration Fax Number: (925) 244-3544
e-mail: [email protected]
EXHIBIT 2
10/2024
City of Stockton
0984137
2500 Navy Drive Stockton, CA 95206
(209) 937-8700
Constellation NewEnergy - Gas Division, LLC
0049
Kari Crawford
(779) 231-5433
121&25(%$/$1&,1*$**5(*$7,21$*5((0(17
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EXHIBIT 2
0932
09/2024
City of Stockton
0984137
2500 Navy Drive Stockton, CA 95206
(209) 937-8700
U 39 San Francisco, California
Revised Cal. P.U.C. Sheet No. 36844-G
Cancelling Revised Cal. P.U.C. Sheet No. 34427-G
Gas Sample Form No. 79-1026 Sheet 1
Authorization to Revise Nominating Marketer on Exhibits C and D of Form 79-756--Natural Gas Service Agreement
Advice 4350-G Issued by Submitted February 4, 2021
Decision Robert S. Kenney Effective February 4, 2021
Vice President, Regulatory Affairs Resolution
Please Refer to Attached
Sample Form
EXHIBIT 2
AUTHORIZATION TO REVISE NOMINATING
MARKETER ON EXHIBITS C AND D OF
FORM 79-756--NATURAL GAS SERVICE AGREEMENT*
† Information collected on this form is used in accordance with PG&E’s Privacy Policy. Page 1 of 2 The Privacy Policy is available at pge.com/privacy. Form No. 79-1026 Advice 4350-G/6050-E
*Automated Documents, Preliminary Statement, Part A February 2021 (Customer Name)
1 (Service Address and City)1
Transportation ID Number1:
Effective Date of Revisions for Exhibits C and D
Requests will take effect as soon as they are received and processed by PG&E unless a later date is indicated. Requested effective date:
Addition or Revision of Nominating Marketer on Exhibit C Please ADDor REVISE2 (Check one) this Nominating Marketer information on Exhibit C:
Nominating Marketer Name: Marketer ID #:
Address/City/State/Zip:
Contact Name:
Phone #: Fax #:
E-Mail Address3:
First Name Last Name E-Mail Address
Customer can check one or more of the boxes below to indicate the appropriate authorization:
This Nominating Marketer cannot have access to gas metering data. This Nominating Marketer cannot view the contract quantities indicated in Exhibit B. Customer authorizes this Nominating Marketer to execute monthly imbalance trades, as specified in Schedule G-BAL.4
Deletions: All previous Nominating Marketers will be deleted from Exhibits C and D unless box is checked below.
Do not delete previous Nominating Marketer(s) specified below:
Marketer Company Name: Marketer ID #:
Marketer Company Name: Marketer ID #:
* This agreement at all times shall be subject to such modifications as the California Public Utilities Commission may direct from time to time in the exercise of its jurisdiction. 1 Use the same Customer Name, Address and Transportation ID Number as shown on the first page of the NGSA. 2 Customer's signature is not required to revise Nominating Marketer's address, contact name, phone, facsimile or e-mail address. Current Authorized Nominating Marketer may sign for these types of revisions. Customer's signature is required to add or delete a Nominating Marketer. 3 E-mail Address will only be used on Exhibit D for OFO/EFO Notices. 4 Only one Nominating Marketer can be granted authority to trade imbalances. Unless Customer has executed Exhibit A of Noncore Balancing Aggregation Agreement Form 79-869 with a Nominating Marketer or other third-party service provider, Customer remains responsible for any and all charges associated with Schedule G-BAL and Rule 14.
City of Stockton 2500 Navy Drive Stockton, CA 95206
0984137
EXHIBIT 2
X
Constellation NewEnergy - Gas Division, LLC 0049
9400 Bunsen Parkway, Suite 100, Louisville, KY 40220
(502) 426-8800
X
AUTHORIZATION TO REVISE NOMINATING
MARKETER ON EXHIBITS C AND D OF
FORM 79-756--NATURAL GAS SERVICE AGREEMENT*
*Automated Documents, Preliminary Statement, Part A Page 2 of 2 Form No. 79-1026
Advice 4350-G/6050-E
February 2021
Transportation ID Number:
Addition or Revision of Nominating Marketer on Exhibit D Please choose one of the following three options. If no options are checked and the Nominating Marketer is authorized to trade imbalances, an imbalance statement will be sent to the address listed on page one of this form.
Add the following address to Exhibit D (write "Same as above" on Company Name line if information is the same as Exhibit C).
Revise the current address on Exhibit D.
Do not send bill copies, imbalance statements or OFO/EFO Notices to the Nominating Marketer.
Company Name:
Address/City/State/Zip:
Contact Name:
Phone #: Fax:
Send copies of these documents/notices to the Company address listed above: (Check one or more)
PG&E Gas Transportation Bills PG&E Imbalance Statement EFO/OFO Notices
Customer Signature
By signing below, Customer2 authorizes PG&E to make the modifications to the Nominating Marketer on the Natural Gas Service Agreement, Exhibits C and D as specified above.
Customer Signature:
Print Name:
Company:
Date:
Please return this authorization to PG&E via facsimile to:
Attention: PG&E Tariff Interpretation
Facsimile Number: (415) 973-7043
0984137
EXHIBIT 2
X
Same As Above
X
X
X
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.
**DRAFT**
Transaction Confirmation
This Transaction Confirmation is delivered pursuant to and in accordance with a gas supply agreement ("Gas Supply Agreement"), effective TBD, by and between Constellation NewEnergy-Gas Division, LLC ("Constellation") and City of Stockton ("Customer"), and is subject to and made part of the terms and conditions of such Gas Supply Agreement.
Special Condition: This Transaction Confirmation is not effective and binding upon the parties hereto unless signed by both parties.
Trade Date: TBD
Buyer: City of Stockton
Seller: Constellation NewEnergy - Gas Division, LLC (CNEGAS) Facility Name: City Of Stockton
Delivery Period: 10/1/2024 - 9/30/2027 (inclusive)
Nature of Obligation: Firm - "Firm" means deliveries and receipts may not be interrupted without liability except for reasons of Force Majeure regardless of the capacity type Constellation uses to receive such gas.
Deal Type: Physical Index
Index Price: To be based on Natural Gas Intelligence's ("NGI") Bidweek Survey, under the column heading "AVG" on the first business day of each month during the calculation period for PG&E Citygate.
Year 2024 Year 2025 Year 2026 Year 2027
Contract
Month
Fixed Amount
(MMBtu)
Price Fixed Amount
(MMBtu)
Price Fixed Amount
(MMBtu)
Price Fixed Amount
(MMBtu)
Price
January 1,542.0 $0.26240 1,542.0 $0.26240 1,542.0 $0.26240 February 1,125.0 $0.26240 1,125.0 $0.26240 1,125.0 $0.26240 March 1,491.0 $0.26240 1,491.0 $0.26240 1,491.0 $0.26240 April 773.0 $0.26240 773.0 $0.26240 773.0 $0.26240
May 272.0 $0.26240 272.0 $0.26240 272.0 $0.26240
June 199.0 $0.26240 199.0 $0.26240 199.0 $0.26240
July 219.0 $0.26240 219.0 $0.26240 219.0 $0.26240
August 185.0 $0.26240 185.0 $0.26240 185.0 $0.26240
September 170.0 $0.26240 170.0 $0.26240 170.0 $0.26240
October 170.0 $0.26240 170.0 $0.26240 170.0 $0.26240
November 174.0 $0.26240 174.0 $0.26240 174.0 $0.26240
December 933.0 $0.26240 933.0 $0.26240 933.0 $0.26240
US$ Rounded to five decimal places
Plus applicable taxes
Account Manager: Hughes, Jennifer L DEAL NO. TBD
(270) 316-2691
[email protected]
EXHIBIT 3
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.
Buyer acknowledges and understands that, in connection with this transaction, Seller may be paying a fee to a third party. The fee, if any, would be included in Buyer's price and would be charged by a broker/agent representing Buyer, a broker/agent representing Seller, or an association/referrer who helped facilitate this transaction.
Incremental Pricing: For all additional quantities required by Customer, in excess of the fixed quantities listed herein in combination with any other nominated quantities, or for gas quantities bought back from Customer by Constellation due to Customer’s requirements being less than the total nominated volumes each month, the price for such additional purchases or buybacks shall be based on the then current market price, as determined by Constellation in its reasonable discretion.
If Constellation and Customer have previously entered into any commodity transaction(s) for the Facility (the "Previous Transaction") that overlap one or more of the delivery months covered in this Transaction Confirmation (the "Overlapping Month(s)"), the incremental gas pricing in this Transaction Confirmation shall apply to the Overlapping Months instead of any conflicting incremental gas pricing associated with the Previous Transaction.
Alternative Pricing Mechanism: The above described index pricing may be amended by a mutually agreed to fixed, NYMEX based, price arrangement at any time during the Delivery Period herein. Upon expiration of such a fixed price arrangement before the end of the Delivery Period, the pricing mechanism shall return to the index pricing of the Delivery Period herein.
NYMEX Trigger Rights: Customer has the right to trigger the NYMEX price for any month(s) at any time during the Delivery Period, prior to 12:00 p.m. EST/EDT on the final day of NYMEX settlement for each applicable month.
Pipeline: PG&E
Delivery Point(s): PG&E-CITYGATE
Utility: PG&E
LDC Account No(s): 6512160005
Seller's planned billing method for this facility is to bill Buyer based on: Actual Consumption Change In Law: Constellation may pass through or allocate, as the case may be, to Customer any increase or decrease in Constellation’s costs related to the natural gas and related products and services sold to Customer that results from the implementation of new, or changes (including changes to transportation rates) to existing, Laws, or other requirements or changes in administration or interpretation of Laws or other requirements. “Law” means any law, rule, regulation, ordinance, statute, judicial decision, administrative order, pipeline or utility business practices or protocol, pipeline or utility tariff, or rule of any commission or agency with federal jurisdiction or jurisdiction in the state in which the facility is located. Such adjusted amounts will be included in subsequent invoices to Customer.
Default Service : Should Constellation continue to deliver to Customer beyond the term of this Transaction Confirmation, said deliveries will be made for successive 1 month terms (each an "Extension Term"), until terminated by either party by giving written notice of termination not less than 30 days prior to the expiration of the then-current Extension Term. The price for gas delivered during the Extension Term(s) will be based on market prices as determined by Constellation. Unless otherwise provided by Customer, Constellation will determine Customer's monthly nomination in a commercially reasonable manner based upon Customer's historical usage data.
EXHIBIT 3
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.
(SIGNATURE BLOCKS FOLLOW ON NEXT PAGE)
EXHIBIT 3
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.
Please return via the DocuSign E-Signature process.
Constellation NewEnergy-Gas Division, LLC City of Stockton By: By:
*CustomerSignature1
Name: Amanda Stewart Name: *CustomerSignerName1
Title: Vice President- Retail Ops Title: *CustomerSignerTitle1 Date: Date: *CustomerSignedDate1
Customer ID RG-44573882
Contract No.
Deal No. TBD
EXHIBIT 3
City of Stockton
Legislation Text
File #: 24-0741, Version: 1
ADOPT A RESOLUTION TO AUTHORIZE A PUBLIC HEARING TO CONSIDER ADJUSTMENTS IN THE CITY’S WASTEWATER RATES AND CHARGES AND AUTHORIZING AND DIRECTING
THE CITY MANAGER TO MAIL A NOTICE OF THE PUBLIC HEARING TO CONSIDER THE
PROPOSED ADJUSTMENTS
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize a public hearing to be held in the future to consider adjustments in the City’s wastewater rates and charges; and
2. Authorize and direct the City Manager to mail a notice of the future public hearing to all City of Stockton Wastewater Utility customers and the record owners of property upon which the rates and charges are proposed. The public hearing shall be held at least 45 days after the notice of the public hearing has been mailed.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Summary
The City of Stockton Municipal Utilities Department (MUD) includes the Water, Wastewater and Stormwater enterprise funds. Periodic wastewater utility rate studies are required by law and necessary to maintain a sound fiscal base to operate and maintain the utility.
The proposed actions will approve the recommendations of the Water Advisory Group and Council Water Committee to initiate the notice and public hearing proceedings required under California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218 and referred to herein as “Article XIII D”) for the consideration of the proposed wastewater rates and charges. These actions will notify wastewater customers and affected property owners of the proposed rate adjustments and provide instructions to submit written protests to the proposed rates and charges prior to the close of the public hearing. A public meeting will be held within the 45-day period following the mailing of the notice of public hearing to provide information regarding the proposed rate adjustments. The meeting will be recorded and available on the City’s website.
Notices will be mailed to customers directly responsible for payment of wastewater utility charges and the record owners of property upon which the rates and charges are proposed within the City’s wastewater service area. Although both billed customers and record owners will be notified, only one protest per parcel will be counted. If fewer than fifty percent plus one of the customers of record or record owners submit written protests to the proposed rate increases prior to the close of the public City of Stockton Page 1 of 5 Printed on 8/16/2024
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File #: 24-0741, Version: 1
hearing, the City Council will be asked to authorize the wastewater rate adjustments at the public hearing, currently anticipated to be held on or about October 22, 2024.
DISCUSSION
Background
It is best practice to perform rate evaluations every five years including the preparation of rate studies to maintain a sound fiscal basis to operate and maintain the utility. The last wastewater utility rate study was completed in 2019 and included the adoption of phased rate adjustments over a five-year period. The most recent wastewater rate adjustment went into effect on July 1, 2023.
Approved by Resolution 2019-05-22-1506, the 2019 wastewater utility rate adjustments included funding for the Regional Wastewater Control Facility (RWCF) Plant Modifications Project (Project).
The City was awarded $108 million from the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA), $46.8 million from the Clean Water Act State Revolving Fund (SRF), and $9.5 million from Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002.
This funding reduced or eliminated the need to issue bonds to fund the Project. The main goal for the Project was to meet new nitrate and nitrite discharge limits imposed by the State. The construction of the new treatment processes is nearly complete, and the RWCF was able to meet the new limits by the June 2024 deadline. Construction of the remaining building elements is scheduled for completion in early 2025. A rate study, and proposed rate increases, are authorized to include adjustments for up to five years. It is prudent financial planning to revisit rate studies every five years to accurately reflect changes in cost-of-service, capital improvement projects, and customer impacts.
Present Situation
Following the Request for Proposals and selection process, a professional services contract with HDR Engineering, Inc. (HDR) was approved by the City Council on August 22, 2023, by Resolution 2023-08-22-1214. HDR was tasked to evaluate the Wastewater Utility’s revenue requirements, prepare a cost-of-service analysis, and design rates that are equitably and proportionately distributed among all customer classes and customers within each class. Customer classes include residential (including single family), multi-family, apartments, commercial, institutional, and industrial. Customers include those located within the City limits and Non-City customers include those within unincorporated pockets.
The Draft Wastewater Rate Study (Attachment A), dated July 2024, exclusively evaluated potential adjustments to the rates of the wastewater service charges; connections fees were not a part of this study.
To determine the appropriate level of revenue for the utility, HDR conducted a maintenance and operations evaluation from FY 2024-25 through FY 2028-29. Three interrelated analyses were used to address the adequacy and equity of the proposed utility rates including:
· The revenue requirement analysis, which compares the revenues to the expenses of the utility to determine the overall rate adjustment required.
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File #: 24-0741, Version: 1
· The cost-of-service analysis, which allocates the revenue requirement of the utility to the various customer classes of service in a fair and equitable manner. · The rate design analysis, which considers both the level and structure of the rate design to collect the necessary amount of revenue.
Based on the analyses, the proposed wastewater rates have been developed to meet the legal requirements of the California Constitution Article XIII D, Section 6 (Article XIII D), commonly referred to as Proposition 218. A key component of Article XIII D requires that the wastewater rates may not exceed the cost of providing wastewater service.
Likewise, Article XIII D determines that the amount of the wastewater service charge levied upon any parcel or person shall not exceed the proportional cost of the service attributable to the parcel. The revenue requirements for the wastewater utility are allocated to the different customer classes based on the respective volume and strength of sewer discharge produced, and customer group. The rate design reflects the revenue requirement findings, meets the City’s goals and objectives, is cost-based and equitably and proportionately distributed among all the customer classes.
On August 7, 2024, and August 8, 2024, the Draft Wastewater Rate Study (Attachment A) and proposed rate adjustments were presented to the Water Advisory Group and Council Water Committee, respectively. Following the Water Advisory Group’s recommendation, the Council Water Committee approved forwarding the proposed wastewater rate adjustments to the City Council for consideration and to proceed with the Article XIII D notice and Public Hearing process.
The City of Stockton will conduct a public information session in September 2024 to provide information to community members regarding the proposed rate increases and the Article XIII D process. This session will be recorded and posted on the City’s website.
By approving the resolution, the City Council will approve the Council Water Committee recommendation to hold a public hearing to consider the proposed wastewater rates and charges and authorize and direct the City Manager to issue a notice of the future public hearing to all City of Stockton Wastewater Utility customers, and the record owners of property upon which the proposed rates and charges are recommended. The Public Hearing shall be held at least 45 days after the notice of the public hearing is mailed. Staff anticipates that the Public Hearing will be held during the City Council meeting on or about October 22, 2024.
The proposed wastewater rates and charges for each customer class and the effective dates are shown in the tables below. The proposed rates for Non-City customers reflect the proportional use of the wastewater system by parcels outside City limits as determined by an agreement between the City and the San Joaquin County.
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File #: 24-0741, Version: 1
Summary of Proposed Monthly Residential Wastewater Rates Present
Rates
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Residential Charge (Per
Dwelling Unit)
Single-Family & Condo (City) $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Single-Family & Condo (NonCity)$50.77 $52.30 $54.39 $56.57 $58.83 $61.18 Multi-Family (City) $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Multi-Family (Non-City) $47.05 $47.42 $49.32 $51.29 $53.34 $55.47 Apartments (City) $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Apartments (Non-City) $41.75 $41.75 $43.42 $45.16 $46.97 $48.85 Summary of Proposed Monthly Commercial/Institutional Wastewater Rates Present
Rates
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Consumption Charges ($/CCF1
)
Com/Inst - Low-strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81 Com/Inst - Med-strength $2.70 $2.75 $2.86 $2.97 $3.09 $3.21 Com/Inst - High-strength $4.54 $4.42 $4.60 $4.78 $4.97 $5.17 Schools ($/ADA2) $1.30 $1.29 $1.34 $1.39 $1.45 $1.51
Fixed Monthly Charge (City) $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Fixed Monthly Charge (NonCity)$23.56 $23.63 $24.58 $25.56 $26.58 $27.64 1CCF = one hundred cubic feet 2ADA = average daily attendance Summary of Proposed Monthly Industrial Wastewater Rates Present
Rates
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Industrial Charges
Fixed Monthly Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Admin / Stand-by Charge
Industrial - Flow ($/MG1) $864.80 $945.76 $983.59 $1,022.93 $1,063.85 $1,106.40 Industrial - BOD ($/Klbs2) $140.13 $153.25 $159.38 $165.76 $172.39 $179.29 Industrial - SS ($/Klbs) $102.88 $112.51 $117.01 $121.69 $126.56 $131.62 Consumption Charges
Industrial - Flow ($/MG) $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 Industrial - BOD ($/Klbs) $52.14 $57.02 $59.30 $61.67 $64.14 $66.71 Industrial - SS ($/Klbs) $83.45 $91.26 $94.91 $98.71 $102.66 $106.77 1MG = million gallons 2Klbs = one thousand pounds
City of Stockton Page 4 of 5 Printed on 8/16/2024
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File #: 24-0741, Version: 1
FINANCIAL SUMMARY
There are sufficient funds available in the Wastewater Utility - Outreach Division’s accounts for postage, special services and reprographics for the related printing and postage fees to mail the notice of public hearing.
This action has no impact on the General Fund or any other unrestricted funds.
Attachment A - Draft Wastewater Rate Study Report
City of Stockton Page 5 of 5 Printed on 8/16/2024
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City of Stockton
Municipal Utilities Department
Comprehensive Wastewater
Rate Study
August 2024
Draft Report
ATTACHMENT A
hdrinc.com
2365 Iron Point Road, Suite 300, Folsom, CA US 95630-8709 (916) 817-4700
August 12, 2024
Ms. Deedee Antypas
Deputy Director of Wastewater Operations
City of Stockton Municipal Utilities Department
2500 Navy Drive
Stockton, CA 95206
Subject: Wastewater Draft Rate Study Report
Dear Ms. Antypas:
HDR Engineering, Inc. (HDR) is pleased to present to the City of Stockton Municipal Utilities Department (Department) the draft report for the comprehensive wastewater rate study (Study).
The Department’s comprehensive study was developed to provide cost-based rates that generate sufficient revenue to fund the operation and maintenance and capital needs of the wastewater utility. More specifically, the study was designed to develop proportional rates for the Department’s customers and specific rate schedules. This report outlines the overall approach used to achieve these objectives, along with our findings, conclusions, and recommendations.
The costs associated with providing wastewater services to the Department’s customers has been developed based on Department specific information and is included within the development of the proposed rates. The Study was developed utilizing industry recognized generally accepted rate setting principles and methodologies as outlined in the Water Environment Federation’s Financing Charges for Wastewater Systems Manual of Practice No. 27 tailored to the Department’s specific wastewater system and customer characteristics. This report provides the basis for developing and implementing wastewater rates which are costbased, proportional, and defensible for the Department’s customers.
We appreciate the assistance provided by the Department’s project team in the development of the Study. More importantly, HDR appreciates the opportunity to provide these technical and professional services to the City of Stockton Municipal Utilities Department.
Sincerely yours,
HDR Engineering, Inc.
Shawn Koorn
Associate Vice President
ATTACHMENT A
Table of Contents i
City of Stockton – Comprehensive Wastewater Rate Study
Executive Summary 1
Introduction ........................................................................................................................ 1 Overview of the Rate Study Process .................................................................................... 1 Key Wastewater Rate Study Results .................................................................................... 2 Summary of the Wastewater Revenue Requirement Analysis ............................................. 2 Summary of the Wastewater Cost of Service Analysis ......................................................... 6 Summary of the Wastewater Rate Designs .......................................................................... 7 1 Introduction and Overview 10
1.1 Introduction ............................................................................................................ 10
1.2 Goals and Objectives .............................................................................................. 10
1.3 Overview of the Rate Study Process ........................................................................ 10
1.4 Organization of the Study ....................................................................................... 11
1.5 Summary ................................................................................................................ 12 2 Overview of Rate Setting Principles 13
2.1 Introduction ............................................................................................................ 13
2.2 Generally Accepted Rate Setting Principles ............................................................. 13
2.3 Determining the Revenue Requirement .................................................................. 13
2.4 Analyzing Cost of Service ........................................................................................ 14
2.5 Designing Utility Rates ............................................................................................ 15
2.6 Economic Theory and Rate Setting .......................................................................... 15
2.7 Summary ................................................................................................................ 15 3 Wastewater Revenue Requirement 16
3.1 Introduction ............................................................................................................ 16
3.2 Determining the Revenue Requirement .................................................................. 16
3.2.1 Establishing a Time Frame and Approach ................................................... 16
3.2.2 Projecting Rate and Other Miscellaneous Revenues .................................. 17
3.2.3 Projecting Operation and Maintenance Expenses ...................................... 18
3.2.4 Projecting Capital Funding Needs............................................................... 19
3.2.5 Projection of Debt Service.......................................................................... 21
3.2.6 Reserve Funding ........................................................................................ 21
3.2.7 Summary of the Wastewater Revenue Requirement ................................. 21 Table of Contents
ATTACHMENT A
Table of Contents ii
City of Stockton – Comprehensive Wastewater Rate Study
3.3 Consultant’s Conclusions ........................................................................................ 23
3.4 Summary ................................................................................................................ 24 4 Wastewater Cost of Service 25
4.1 Introduction ............................................................................................................ 25
4.1.1 Objectives of a Cost of Service Analysis ...................................................... 25
4.2 Determining the Customer Classes of Service ......................................................... 25
4.3 General Cost of Service Procedures ........................................................................ 26
4.3.1 Functionalization of Costs .......................................................................... 26
4.3.2 Allocation of Costs ..................................................................................... 27
4.3.3 Development of Distribution Factors ......................................................... 27
4.4 Summary of the Wastewater Cost of Service Analysis ............................................. 29
4.5 Consultant’s Conclusions and Recommendations ................................................... 36
4.6 Summary ................................................................................................................ 36 5 Wastewater Rate Design Analysis 37
5.1 Introduction ............................................................................................................ 37
5.2 Rate Design Criteria and Considerations ................................................................. 37
5.3 Development of Cost-Based Wastewater Rates ...................................................... 37
5.4 Overview of the Proposed Rate Adjustments .......................................................... 38
5.5 Overview of the Current Wastewater Rate Structure .............................................. 41
5.6 Summary of the Wastewater Rates ......................................................................... 41
5.7 Summary of the Wastewater Rate Design ............................................................... 43 Technical Appendix – Wastewater 44
ATTACHMENT A
Executive Summary 1
City of Stockton – Comprehensive Wastewater Rate Study
Executive Summary
Introduction
HDR Engineering, Inc. (HDR) was retained by the City of Stockton Municipal Utilities Department (Department) to conduct a comprehensive wastewater rate study (Study). The main objectives of the Study were to:
Develop a projection of wastewater revenues to support the Department’s operating and capital costs
Proportionately distribute the costs of providing wastewater service to the customers receiving service
Propose cost-based and proportional wastewater rates for a multi-year time period that are in compliance with State law
The Department owns, operates, and maintains the wastewater system, which provides services to customers within the City of Stockton and the surrounding area. The costs associated with providing wastewater service to the Department’s customers have been based on the information developed and provided by City staff and are the basis for the proposed rates.
Overview of the Rate Study Process
A comprehensive rate study uses three interrelated analyses to address the adequacy and proportionality of a utility’s rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES - 1.
Figure ES – 1
Overview of the Comprehensive Wastewater Rate Analysis
Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses
to determine the overall revenue
adjustment required
Distributes the revenue requirement to
the customer classes of service in a
proportional manner
Considers both the level and
structure of the rate design to collect
the target level of revenues
ATTACHMENT A
Executive Summary 2
City of Stockton – Comprehensive Wastewater Rate Study
The above framework was utilized in the development of the Study for reviewing and evaluating the Department’s wastewater rates.
Key Wastewater Rate Study Results
The Study technical analysis was developed based on the operating and maintenance (O&M) and capital costs necessary to provide wastewater services to the Department’s customers. The wastewater analysis resulted in the following findings, conclusions, and recommendations. A revenue requirement analysis was developed for the projected time period of FY 2023-24 through FY 2032-33 for the wastewater utility.
The Department’s FY 2023-24 and FY 2024-25 wastewater utility adopted budgets were used as the starting point of the analysis.
Operation and maintenance (O&M) expenses are projected to increase at inflationary levels with no assumed changes to levels of service or anticipated extraordinary expenses. A cost of service analysis was developed to review the equity of the existing rates and to proportionately distribute the revenue requirement between the identified wastewater customer classes of service and customers within each class. The results of the cost of service analyses provided the unit costs (i.e., cost basis) which were used to establish the proposed wastewater rates for each customer class of service. Previous droughts and State mandated water consumption reductions, along with the number of customers by customer class, have impacted customer water consumption levels since the prior study, which in turn has changed the discharge patterns of the Department’s customers and, therefore, the volume related revenues and treatment expenses for the wastewater utility.
The Study has developed proposed rates for the FY 2024-25 – FY 2028-29 time period for each customer class of service.
The proposed wastewater revenue adjustments average 4.0%, annually, from FY 2024-25 through FY 2028-29.
Summary of the Wastewater Revenue Requirement Analysis
The Department’s wastewater utility revenue requirement analysis is the first analytical step in the comprehensive rate study process. The revenue requirement analysis determines the adequacy of the current wastewater rates to fund current and future costs related to both O&M and capital needs. From this comparison, a determination can be made as to the overall level of wastewater rate revenue adjustments needed to provide adequate and prudent funding for the wastewater utility.
For the Study, the revenue requirement was developed for the budgeted years FY 2023-24 and FY 2024-25 and a projected time period (FY 2025-26 – FY 2032-33). As a practical matter, a multiyear time frame is recommended in an attempt to identify major expenses that may be on the horizon. By anticipating future financial requirements, the Department may begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.
ATTACHMENT A
Executive Summary 3
City of Stockton – Comprehensive Wastewater Rate Study
While a long-term time period (i.e., 10-years) was developed, the focus of the Study was on the next five-year rate setting period of FY 2024-25 – FY 2028-29.
The revenue requirement analysis was developed using the “cash basis” approach. The cash basis approach is an industry standard approach and one of the most commonly used approaches by municipal utilities to set their revenue requirement. Under this approach, the revenues of the utility must be sufficient to recover all cash needs, including O&M expenses, transfer payments, annual debt service payments, and capital projects funded through rates (rate funded capital).
The primary financial inputs in the development of the revenue requirement were the Department’s FY 2023-24 and FY 2024-25 budget documents, historical billed customer and consumption data, and the Department’s wastewater capital improvement plan. Budgeted O&M expenses were projected using inflationary factors for the Department’s various expenses to provide wastewater collection, conveyance, treatment, and disposal services over the projected time period. These inflationary factors were based on historical Department specific increases in costs and planned changes based on City of Stockton planning and financial projection studies and analyses.
The proper and adequate funding of capital projects is important to help minimize rate increases over time. General financial guidelines state that, at a minimum, a utility should fund an amount equal to, or greater than, the annual depreciation expense through rates. The annual depreciation expense reflects the current investment in plant facilities in service being depreciated or “losing” their useful life. This portion of plant investment needs to be replaced to maintain the existing level of infrastructure (and service levels). However, it must be kept in mind that, in theory, the annual depreciation expense reflects an investment in infrastructure that was placed in service an average of 15 years ago, assuming a 30-year useful, depreciable, life. Simply funding an amount equal to the annual depreciation expense will not be sufficient to fund the replacement of an existing or depreciated facility. Therefore, consideration should be given to funding within rates some amount greater than the annual depreciation expense for renewals and replacements.
As a part of this Study, the Department made a concerted effort to increase the overall level of “pay-as-you-go” (rate) funding as part of the Department’s capital improvement plan to maintain the wastewater system (e.g., renewal and replacement needs). Provided below in Table ES - 1 is a summary of the capital funding analysis. This shows the annual level of capital projects identified by the Department, the other funding sources (available reserves), and the amount of rate funded capital over the five-year rate setting period. A more detailed discussion of the capital funding plan is included in Section 3.5 of this report.
ATTACHMENT A
Executive Summary 4
City of Stockton – Comprehensive Wastewater Rate Study
Table ES – 1
Summary of the Wastewater Annual Rate Funded Capital ($000) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Total Capital
Improvement Projects $15,000 $20,579 $35,416 $37,900 $35,000 $19,500 Less: Other Funding 0 4,579 18,416 19,900 16,500 0
Total Rate Funded
Capital $15,000 $16,000 $17,000 $18,000 $18,500 $19,500 As a point of reference, the Department’s annual depreciation expense is approximately $12.9 million (FY 2022-23). The Study has placed the Department’s rate funding for capital improvements at $15.0 million and increases annually over the Study time period to prudently fund capital renewal and replacement needs. In developing this funding plan, HDR and the Department have attempted to minimize rate impacts while funding the necessary capital improvement plan projects of the Department. HDR has worked with the Department’s financial staff and external financial advisors to develop the proposed financing plan. It is important to note that HDR is not acting in a municipal advisory role to the Department.
Given a projection of O&M and capital expenses, a summary of the wastewater revenue requirement analysis was developed. Provided below in Table ES - 2 is a summary of the revenue requirement analysis for the Department’s wastewater utility.
ATTACHMENT A
Executive Summary 5
City of Stockton – Comprehensive Wastewater Rate Study
Table ES - 2
Summary of the Wastewater Revenue Requirement Analysis ($000) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Revenues
Rate Revenues $90,747 $91,655 $92,571 $93,497 $94,432 $95,376 Other Revenues 2,615 2,669 2,566 2,538 2,287 1,975
Total Revenues $93,362 $94,324 $95,137 $96,035 $96,719 $97,352 Expenses
O&M Expenses $72,510 $77,803 $80,837 $83,945 $87,123 $90,434 Rate Funded Capital 15,000 16,000 17,000 18,000 18,500 19,500 Net Annual Debt Service 5,687 7,502 7,683 7,684 7,686 7,688 To / (From) Reserves 166 (4,843) (2,830) (1,919) (550) 393 Total Expenses $93,362 $96,462 $102,691 $107,709 $112,759 $118,015 Bal./(Def.) of Funds $0 ($2,139) ($7,554) ($11,674) ($16,040) ($20,664) Bal. as a % of Rate Rev. 0.0% 2.3% 8.2% 12.5% 17.0% 21.7% Proposed Revenue
Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Add’l Rev. from Adjustment $0 $2,139 $7,554 $11,674 $16,040 $20,664 Total Bal./(Def.) of Funds $0 $0 $0 $0 $0 $0
As can be seen, the revenue requirement has summed the O&M expense, rate funded capital, net debt service, and reserve funding. The total revenue requirement is then compared to the total sources of funds, which include the rate revenues, at present rate levels, and other miscellaneous revenues. From this comparison, a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the current level of rate revenues to determine the level of adjustment needed to meet the revenue requirement. It is important to note that the “Bal. / (Def.) of Funds” row is cumulative. That is, any adjustments in the initial years will reduce the deficiency in the later years. Over this Study time period, the total deficiency of rate revenue is 21.7%. As a point of reference, the revenue adjustment for FY 2024- 25, if adopted by the City Council, would be implemented in December 2024 for the remainder of FY 2024-25.
Based on the revenue requirement analysis developed herein, HDR has concluded that the Department will need to adjust the level of wastewater revenues received over the next five fiscal years (FY 2024-25 – FY 2028-29). HDR has reached this conclusion for the following reasons:
Adjustments are necessary to fund the Department’s capital needs, of which is driven by completing the RWCF Modification Project upgrades, annual system renewal and replacement needs, and major projects like the Fourteen Mile Slough Sanitary Pump Station Rebuild and Westside Interceptor Parallel Force Main projects. Adjustments are necessary to maintain prudent funding of annual inflationary increases to O&M expenses to maintain wastewater services for the Department’s customers.
ATTACHMENT A
Executive Summary 6
City of Stockton – Comprehensive Wastewater Rate Study
The proposed adjustments maintain the Department’s strong financial health (e.g., debt service coverage ratios) and provide long-term, sustainable funding levels for the Department.
In reaching this conclusion, HDR would recommend that the Department adopt the proposed revenue adjustments for FY 2024-25 through FY 2028-29 to provide sufficient funding for the O&M and capital improvement needs over the Study time period. A more detailed discussion of the development of the revenue requirement is provided in Section 3 of this report.
Summary of the Wastewater Cost of Service Analysis
A cost of service analysis determines the proportional distribution of the revenue requirement to the identified customer classes of service to establish the proposed wastewater rates. The objective of the cost of service analysis is different from determining the revenue requirement.
Whereas the revenue requirement analysis determines the utility’s overall revenue needs, the cost of service analysis determines the proportional distribution of the revenue requirement to establish proposed rates for the proposed time period. In this case, the revenue requirement for FY 2024-25, the first year of the proposed rate transition plan, was used for establishing the cost of service analysis.
In summary form, the cost of service analysis began by functionalizing the revenue requirement for the wastewater system. As explained in more detail later in this report, the functionalized revenue requirement is then allocated to the appropriate cost component(s). The individual functional allocated totals are proportionately distributed to the identified customer classes of service based on each customer class’s use of or demand placed on the system. The Department’s customer classes are based on the current rate schedules which reflects the different types of customers served. This includes single family and condos, multi-family, apartments, commercial, and industrial customers. The distributed expenses for each customer class were then aggregated to determine each customer class’s overall revenue responsibility. Table ES - 3 provides the summary of the cost of service analysis completed for the Department’s wastewater utility customers.
ATTACHMENT A
Executive Summary 7
City of Stockton – Comprehensive Wastewater Rate Study
Table ES - 3
Summary of the Wastewater Cost of Service Analysis ($000) Class of Service
Current
Rate Revenues
Distributed
Costs
$
Difference
%
Difference
Single Family & Condo $57,144 $58,836 ($1,691) 3.0%
Multi-Family 5,496 5,539 (43) 0.8%
Apartments 16,548 16,553 (4) 0.0%
Com / Inst
Low Strength $372 $394 ($21) 5.7%
Medium Strength 4,807 4,837 (30) 0.6%
High Strength 1,895 1,833 62 -3.3%
Schools 933 926 7 -0.7%
Industrial 4,459 4,876 (417) 9.4%
Total $91,655 $93,793 ($2,139) 2.3%
The results of the cost of service analysis indicate cost differences between the customer classes of service. Given the requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218), the results of the wastewater cost of service analysis are used to establish the proposed rates. As noted in the cost of service chapter of this report, the implementation of cost of service adjustments will impact the overall customer bill and revenue generation for the wastewater utility. These results are driven by the Department’s system and customers characteristics, which have changed since the prior study. Given the development of the cost of service analysis, HDR would recommend the implementation of the proposed wastewater rates based on the Study results. A detailed discussion of the development of the cost of service analysis is provided in Section 4 of this report.
Summary of the Wastewater Rate Designs
The final step of the comprehensive rate study process is the design of the wastewater rates to collect the desired levels of revenue, based on the results of the revenue requirement and cost of service analyses. The revenue requirement analysis provided a set of recommendations related to annual revenue adjustments, while incorporating the cost of service results and implementing interclass adjustments to reflect the proportionality of each customer class of service.
The Department currently has a rate structure for each of the customer classes of service. For residential customers, which includes Single-Family, Condominiums, Multi-Family, and Apartments, a monthly flat rate is charged on a per living unit basis. It is important to understand that each customer class has a separate rate given different customer characteristics, such as assumed volume contributions, as outlined in the cost of service analysis. Within the Commercial/Institutional customer class, there are four subclasses of customers, based on the type of activity and the strength of wastewater they discharge into the Department’s wastewater
ATTACHMENT A
Executive Summary 8
City of Stockton – Comprehensive Wastewater Rate Study
system. These customers are charged a monthly fixed charge as well as a consumption charge based on the estimated discharge of wastewater in hundred cubic feet (CCF) and the strength of the customer’s discharges, which are classified as low, medium, or high. Schools are charged a fixed charge as well as a variable charge based on their projected average daily attendance.
Finally, Industrial customers are charged on a fixed and consumption-based approach, including a charge based on the actual strength of the wastewater discharged to the Department’s system.
Given the results of the revenue requirement and cost of service analyses, proposed rates have been developed that reflect the proportional distribution of the costs of providing wastewater service to the different customer classes of service. It is important to note that the structure of the proposed rates have not changed, and it is not recommended to do so at this time. Therefore, only the level of rates has been adjusted in order to meet the revenue requirement of the Department’s wastewater utility. Furthermore, the rates for FY 2024-25 are based on the unit costs developed in the cost of service analysis. The proposed wastewater rates, thereafter, are increased by the annual revenue requirement adjustment.
Provided in Table ES – 4 is a summary of the current and proposed rates for the Residential customer class. Notably, the proposed Non-City customer rates are based on the agreements between the County and the City and reflect the proportional use of the Department’s wastewater system. Due to these agreements and that the cost of service unit costs are blended rates, the differential between the City and Non-City customer rates will not match the average unit costs exactly. The rate design reflects the agreement and calculation of the proposed rates for City and Non-City customers.
Table ES – 4
Summary of the Present and Proposed Residential Wastewater Rates ($/Living Unit)
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
ATTACHMENT A
Executive Summary 9
City of Stockton – Comprehensive Wastewater Rate Study
Provided in Table ES - 5 is a summary of the current and proposed Commercial rates, which also include City and Non-City rates as mentioned previously.
Table ES – 5
Summary of the Present and Proposed Commercial/Institutional Wastewater Rates
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Base Charge ($/Account)
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge ($/CCF)
Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81
Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21
High Strength 4.54 4.42 4.60 4.78 4.97 5.17
Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
Similar to how the Residential and Commercial customer class rates were developed, the Industrial rates were increased according to the results of the cost of service analysis. Table ES – 6 below shows a summary of the present and proposed Industrial rates.
Table ES – 6
Summary of the Present and Proposed Industrial Wastewater Rates Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Admin / Stand-by Charge
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow - $ / mg 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40 BOD - $ / 1,000 lbs 140.13 153.25 159.38 165.76 172.39 179.29 SS - $ / 1,000 lbs 102.88 112.51 117.01 121.69 126.56 131.62 Consumption Charge
Flow - $ / mg $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 BOD - $ / 1,000 lbs 52.14 57.02 59.30 61.67 64.14 66.71 SS - $ / 1,000 lbs 83.45 91.26 94.91 98.71 102.66 106.77 The development of the rate designs is outlined in detail in Section 5 of this report.
ATTACHMENT A
Introduction and Overview 10
City of Stockton – Comprehensive Wastewater Rate Study
1 Introduction and Overview
1.1 Introduction
HDR was retained by the City of Stockton Municipal Utilities Department to conduct a comprehensive wastewater rate study. The objective of the Study was to review the Department’s operating and capital costs to develop a financial plan for the wastewater utility on a standalone basis as well as cost-based rates that comply with State law. The Study reviewed the adequacy of the existing wastewater rates and provides the framework, cost basis, and proportionality for the proposed wastewater rates.
The Department owns and operates the wastewater system in Stockton, California and includes the collection, conveyance, treatment, and disposal of wastewater generated by properties within the city and certain properties in unincorporated areas of the County. The costs associated with providing wastewater services to customers have been developed based on financial and operating data provided by the Department and included within the development of the Study.
1.2 Goals and Objectives
The Department had a number of key objectives in developing the wastewater rate study. These key objectives provided a framework for policy decisions in the analyses that followed. The key objectives were:
Develop the Study in a manner that is consistent with the principles and methodologies established by the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Sewer Systems (WEF MOP #27).
In financial planning and establishing the Department’s rates, review and utilize best industry practices, while recognizing and acknowledging the specific and unique characteristics of the Department’s wastewater system and customers. Review the Department’s rates utilizing “generally accepted” rate making (cost of service) methodologies to determine the adequacy of the utility rates. Meet the Department’s financial planning criteria and goals, such as debt service coverage ratios, adequate funding of capital infrastructure replacement, and maintenance of adequate and prudent reserve levels.
Develop a financial plan which adequately supports the wastewater utility’s funding requirements, while attempting to minimize overall impacts to rates. Provide rates designed to meet the intent and requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218).
1.3 Overview of the Rate Study Process
User rates must be set at a level where a utility’s O&M and capital expenses are met with the revenues received from customers. This is an important point, as failure to achieve this objective may lead to insufficient funds to maintain system integrity. To evaluate the adequacy of the
ATTACHMENT A
Introduction and Overview 11
City of Stockton – Comprehensive Wastewater Rate Study
existing wastewater rates, a comprehensive rate study is often performed. A comprehensive rate study consists of three interrelated analyses. Figure 1 - 1 provides an overview of these analyses.
Figure 1 – 1
Overview of the Comprehensive Wastewater Rate Analyses
The above framework for reviewing and evaluating rates was utilized for the development of the Study. As noted, the wastewater utility was reviewed on a stand-alone basis – that is, no funding from other Department or City funds was assumed – to determine the level of adequate funding needs from the utility’s rate revenues.
1.4 Organization of the Study
This report is organized in a sequential manner that first provides an overview of utility rate setting principles, followed by sections that detail the specific steps used to review and develop the Department’s proposed wastewater rates. The following sections comprise the Department’s wastewater rate study report:
Section 2 – Overview of Rate Setting Principles
Section 3 – Wastewater Revenue Requirement Analysis
Section 4 – Wastewater Cost of Service Analysis
Section 5 – Wastewater Rate Design Analysis
Technical Appendices are attached at the end of this report, which detail the technical analyses that were undertaken in the preparation of the Study.
Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses
to determine the overall rate
adjustments required
Distributes the revenue requirement to
the identified customer classes of service
in a proportional manner
Considers both the level and
structure of the rate design to collect
the target level of revenues
ATTACHMENT A
Introduction and Overview 12
City of Stockton – Comprehensive Wastewater Rate Study
1.5 Summary
This report will review the comprehensive wastewater rate study prepared for the Department.
This report has been prepared utilizing generally accepted and industry standard rate setting techniques, the Department’s specific and unique system and customer characteristics, while taking into consideration legal requirements for establishing rates pursuant to the California Constitution.
ATTACHMENT A
Overview of Rate Setting Principles 13
City of Stockton – Comprehensive Wastewater Rate Study
2 Overview of Rate Setting Principles
2.1 Introduction
This section of the report provides background information about the wastewater rate setting process, including descriptions of generally accepted principles, types of utilities and methods of determining a revenue requirement, cost of service, and rate design. This information is useful for gaining a better understanding of the details presented in Sections 3 through 5 of this report.
2.2 Generally Accepted Rate Setting Principles
As a practical matter, all utilities should consider setting their rates around some generally accepted or global principles and guidelines. Utility rates must be cost-based, proportional, and set at a level that meets the utility’s full revenue requirement. As a result of setting these proportional, cost-based rates, utility rates can also be:
Easy to understand and administer
Designed to conform to “generally accepted” rate setting techniques Stable in their ability to provide adequate revenues for meeting the utility’s financial, O&M, and regulatory requirements
Established at a level that is stable from year-to-year from a customer’s perspective
2.3 Determining the Revenue Requirement
Most public utilities use the “cash basis” approach for establishing their revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and the calculation is easy to understand. A public utility totals its cash expenditures for a period of time to determine its required revenues. The revenue requirement for a public utility is usually comprised of the following costs or expenses:
Total Operating Expenses: This includes a utility’s operation and maintenance (O&M) expenses, plus applicable taxes or transfer payments. O&M expenses include the materials, electricity, labor, supplies, etc., needed to keep the utility functioning.
Total Capital Expenses: Capital expenses are calculated by adding debt service payments (principal and interest) to capital replacements financed with rate revenues. In lieu of including capital replacements financed with rate revenues, a utility sometimes includes annual depreciation expense to stabilize the annual revenue requirement.
Under the cash basis approach, the sum of the total O&M expenses plus the total capital expenses equals the utility’s revenue requirement during any selected period of time (historical or projected).
Note that the two portions of the capital expense component (debt service and rate funded capital) are necessary under the cash basis approach as utilities generally cannot finance all of their capital facilities with long-term debt. At the same time, it is often difficult to pay for capital
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Overview of Rate Setting Principles 14
City of Stockton – Comprehensive Wastewater Rate Study
expenditures on a “pay-as-you-go” basis given that some major capital projects may have significant rate impacts on a utility, even when financed with long-term debt. Many utilities have found that some combination of pay-as-you-go funding and long-term financing will often lead to the minimization of rate increases over time.
Public utilities typically use the cash basis1 approach to establish their revenue requirements. An exception can occur if a public utility provides service to a large wholesale or contract customer.
In this situation, a public utility may use the “utility basis” approach (see Table 2 - 1) regarding earning a fair return on its investment.
Table 2 – 1
Cash Basis versus Utility Basis Comparison
Cash Basis Utility Basis (Accrual)
+ O&M Expenses + O&M Expenses
+ Taxes / Transfer Payments + Taxes/Transfer Payments
+
Capital Improv. Funded From Rates
;ш Depreciation Expense) + Depreciation Expense
+ Debt Service (Principal + Interest) + Return on Investment = Total Revenue Requirement = Total Revenue Requirement
2.4 Analyzing Cost of Service
After the total revenue requirement is determined, it is proportionately distributed to the users of the service (i.e., customer classes/rate schedules). The distribution of costs, as analyzed through a cost of service analysis, reflects the cost relationships for providing wastewater services. A cost of service analysis requires three analytical steps:
1. Costs are functionalized or grouped into the different cost categories related to providing service. For a wastewater utility, this typically includes collection/conveyance, pumping, and treatment. This step is largely accomplished by the utility’s accounting system (chart of accounts).
2. The functionalized costs are then allocated to specific cost components. Allocation refers to the arrangement of the functionalized data into the appropriate cost component(s).
For example, sewer costs are typically allocated as volume, strength, and customerrelated costs. 1 “Cash basis” as used in the context of rate setting is not the same as the terminology used for accounting purposes and the recognition of revenues and expenses. As used for rate setting, “cash basis” simply refers to the specific cost components to be included within the revenue requirement analysis.
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Overview of Rate Setting Principles 15
City of Stockton – Comprehensive Wastewater Rate Study
3. Once the costs are allocated to the appropriate cost component(s), each cost component is then proportionally distributed to the customer classes of service (e.g., residential, commercial, industrial). The distribution is based on each customer class’s relative or proportional contribution to the cost component. For example, customer-related costs are distributed to each class of service based on the total number of customers in each class of service. Once costs are distributed, the total amount of revenues needed from each customer class of service, to achieve cost-based rates, can be determined.
2.5 Designing Utility Rates
Rates that meet the utility’s objectives are designed based on both the revenue requirement and cost of service analyses. This approach results in rates that are strictly cost-based. While ratesetting can consider factors such as ability to pay, continuity of past rate philosophy, economic development, ease of administration, and customer understanding may be taken into consideration, such factors are incidental to cost-based, proportional rates. The proposed rates must take into consideration each customer class’s proportionate share of costs distributed through the cost of service analysis to meet the requirements of the California Constitution.
2.6 Economic Theory and Rate Setting
One of the major justifications for a comprehensive rate study is founded in economic theory. Economic theory suggests that the price of a commodity must roughly equal its cost if parity among customers is to be maintained. This statement’s implications on utility rate designs are significant. For example, a wastewater utility incurs additional costs to treat high strength wastewater. It follows that the customers who create and discharge high strength wastewater into the system create additional operating costs and therefore, should pay for the costs associated with treating higher strength waste and any other maintenance costs associated with their discharges. When costing and pricing techniques are refined, consumers have a more accurate understanding of the service costs to collect and treat wastewater. This price-equals-cost concept provides the basis for the subsequent analysis and comments.
2.7 Summary
This section of the report has provided a brief introduction to the general principles, techniques, and approaches used to develop cost-based wastewater rates. These principles and techniques are the basis for the Department’s comprehensive rate study explained in this report. “Economic theory suggests
that the price of a
commodity must roughly
equal its cost if equity
among customers is to be
maintained.”
ATTACHMENT A
Wastewater Revenue Requirement 16
City of Stockton – Comprehensive Wastewater Rate Study
3 Wastewater Revenue Requirement
3.1 Introduction
This section of the report details the development of the revenue requirement analysis for the Department’s Study. The revenue requirement analysis is the first analytical step in the comprehensive rate study process. From this analysis, a determination can be made as to the overall level of rate revenue adjustments needed to provide adequate and prudent funding for both O&M and capital needs of the utility. The primary objective of the Study was to develop cost-based and proportional rates that comply with the California Constitution, while attempting to minimize the impacts to the utility’s customers. This analysis, the revenue requirement analysis, provides the cost basis for the development of the proposed wastewater rates.
3.2 Determining the Revenue Requirement
In developing the Department’s wastewater revenue requirement for the Study period, the objective is that the utility must financially “stand on its own” and be properly funded. That is, no rate revenues are transferred from other Department funds or the other City funds to support the wastewater utility. As a result, the revenue requirement analysis assumes the full and proper funding needed to operate and maintain the wastewater system on a financially sound and prudent basis for the long-term.
3.2.1 Establishing a Time Frame and Approach
To begin calculating the revenue requirement for the Department’s wastewater utility, a time frame was established for the analysis (i.e., the Study period). The most recent budget years (FY 2023-24 and FY 2024-25) plus an 8-year review period (FY 2025-26 – FY 2032-33) was determined to be an appropriate amount of time for the revenue requirement analysis projected time period.
The revenue requirement was based on the Department’s adopted wastewater budgets for FY 2023-24 and FY 2024-25, which were then projected over a multi-year period based on historical escalation factors. Reviewing a multi-year time period is recommended as it attempts to identify any major expenses that may be on the horizon. By anticipating future financial requirements, the Department can begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.
The second step in determining the revenue requirement was to determine the basis for accumulating costs. As discussed in Section 2 of this report, the revenue requirement analysis was developed using the “cash basis” approach. The cash basis approach is the most commonly used methodology by municipal utilities to set their revenue requirement. This is also the methodology that the Department has historically used to establish its wastewater revenue requirement. Table 3 - 1 provides a summary of the “cash basis” approach and the cost components used to develop the Department’s wastewater revenue requirement.
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City of Stockton – Comprehensive Wastewater Rate Study
Table 3 – 1
Overview of the Department’s “Cash Basis” Revenue Requirement + Wastewater Operation and Maintenance Expenses
+ Transfers
+ Rate Funded Capital
+ Debt Service (Principal + Interest) – Existing and Future ± Reserve Funding________________________________
= Total Wastewater Revenue Requirement
о Miscellaneous Revenues__________________________
= Net Revenue Requirement (Balance Required from Rates) Given a time period around which to develop the revenue requirement and a method to accumulate the costs, the focus shifts to the development and projection of the revenues and expenses of the Department’s wastewater utility.
The primary financial inputs in the development of the revenue requirement were the Department’s adopted FY 2023-24 and FY 2024-25 budget documents, recent 12-months of customer billing data, historical financial reports, and the Department’s capital improvement plan (CIP). Presented below is a detailed discussion of the steps and key assumptions contained in the development of the projections of the Department’s wastewater revenue requirement analysis.
3.2.2 Projecting Rate and Other Miscellaneous Revenues
The first step in developing a projection of the wastewater rate revenues, at present rate levels, was to determine the projected billing units (fixed and if applicable, variable/volumetric charges) for each customer group. The billing units for each customer group were based on the most recent 12-month period of July
2022 to June 2023 to determine
the current customer discharge
characteristics. These billing units
were then multiplied by the
applicable current wastewater
rates. This method of
independently calculating
revenues links the projected
revenues used within the analysis
to the projected billing units. It
also helps to confirm that the
billing units used within the Study
are reasonable for purposes of
projecting future revenues,
ATTACHMENT A
Wastewater Revenue Requirement 18
City of Stockton – Comprehensive Wastewater Rate Study
distributing costs and ultimately, establishing proposed rates. The rate revenues are also shown in Exhibit 3 under “Rate Revenues” for FY 2023-24.
Based on the Departments current rate schedules, the majority of the rate revenues are derived from single family and condominium customers. The Department also serves a variety of multifamily and non-residential customers. In total, and at currently adopted rate levels, the Department’s wastewater system is projected to receive approximately $90.7 million in rate revenue in FY 2023-24. Based on current City planning documents, the Study has assumed a conservative level of customer account growth of 1.0% / year. By FY 2032-33, the rate revenues - assuming no rate adjustments - are projected to be approximately $99.2 million. The detailed calculation of the revenues at present rates is included in Exhibit 6 of the Technical Appendix.
In addition to rate revenues, the Department also receives other miscellaneous revenues. These are revenues related to fats, oils, and grease (FOG) inspections, interest income, late charges, etc. In total, the Department is projected to average approximately $2.3 million annually in miscellaneous revenues over the projected time period.
On a combined basis, taking into account rate revenues and miscellaneous revenues, the Department’s wastewater utility has total projected revenues of approximately $93.4 million in FY 2023-24, increasing to approximately $101.6 million by FY 2032-33 as a result of estimated growth as noted above. The assumptions used for projecting growth and increases in miscellaneous revenues can be found in Exhibit 2 of the Technical Appendix. Furthermore, the projection of rate and miscellaneous revenues can be found in Exhibit 3 of the Technical Appendix.
3.2.3 Projecting Operation and Maintenance Expenses
Operation and maintenance (O&M) expenses are incurred by the Department to maintain the wastewater collection, conveyance, treatment, and disposal system at a consistent service level.
The starting point of the projection of O&M expenses was the Department’s adopted FY 2023- 24 and FY 2024-25 budgets. Budgeted O&M expenses were projected over the Study time period based on historical inflationary factors. These factors took into consideration the Department’s historical cost increases and projected increases. The factors ranged from 3.0% to 9.0% annually for the various types of expenses (e.g., labor, benefits, materials & supplies). Several specific costs were adjusted based on known increases and provided by the City’s financial team. These were items related to CalPERS and other benefit related costs. In total, O&M expenses were projected to increase at an annual inflation rate of approximately 3.7% over the Study time period. As a note, this is consistent with annual changes in wastewater O&M costs over the past several years.
The total operation and maintenance expenses budgeted for the wastewater utility are budgeted to be approximately $72.5 million in FY 2023-24. Over the five-year rate setting period, the total O&M expenses are projected to increase to approximately $90.4 million by FY 2028-29. A summary of the O&M expenses is shown as a line item in Table 3 – 3.
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Wastewater Revenue Requirement 19
City of Stockton – Comprehensive Wastewater Rate Study
3.2.4 Projecting Capital Funding Needs
A key component in the development of the wastewater revenue requirement is to properly and adequately fund capital improvement needs in the near and long term. One of the major issues facing many utilities across the U.S. is the amount of deferred capital projects and the funding pressure from regulatory-related improvements. The proper and adequate funding of capital projects is an important issue for all wastewater utilities and is not just a local issue or concern of the Department. To accomplish this, the Department has adopted a capital improvement plan (CIP) to address both the short and long-term needs of the wastewater utility. The Department’s CIP outlines the infrastructure improvements necessary to provide wastewater service to existing and future wastewater customers.
In general, there are three types of capital projects that the Department may need to fund. These include the following types:
Renewal and replacement projects
Growth/capacity expansion projects
Regulatory-related projects
A renewal and replacement project is essentially a project to maintain the existing system that is in place today. Existing facilities become worn out, obsolete, etc. The Department should continuously be making investments to maintain the integrity of its facilities with renewal and replacement projects to ensure continued, uninterrupted wastewater service. Growth or capacity expansion projects are related to providing service to new customers. This may be through expansion of the existing system or construction of new facilities to provide service to customers within the Department’s service area. Additionally, certain projects may be a function of a regulatory requirement in which the Federal or State government mandates the need for an improvement to the system to meet regulatory standards. Understanding these different types of capital projects is important because it may help to explain why costs are increasing and as a result, the cost drivers for any needed rate adjustment.
The way in which projects are funded may vary by the type of capital project. For example, renewal and replacement projects should be funded through annual rates on a “pay-as-you-go basis”. In contrast to this, growth or capacity expansion projects may be funded through the collection of connection fees (i.e., growth-related charges) in which new development pays a proportional share of the cost of improvements required as a result of their connection (impact).
Finally, regulatory projects may be funded by a variety of different means, which may include one or more sources such as rates, long-term debt, grants, etc.
While the above discussion appears to neatly divide capital projects into three clearly defined categories, the reality of working with specific capital projects may be more complex. For example, a pump may be replaced, but while being replaced, it is up sized to accommodate the need for greater capacity. There are many projects that share these “joint” characteristics. At the same time, projects may not be “replacement” related, but rather “improvement” related.
Provided below in Table 3 - 2 is a summary of the wastewater capital funding analysis.
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Wastewater Revenue Requirement 20
City of Stockton – Comprehensive Wastewater Rate Study
Table 3 – 2
Summary of the Wastewater Capital Improvements ($000) 1 FY 2023-
24 FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Total RWCF Upgrades $4,850 $2,447 $3,475 $2,750 $250 $0 Total Pipe Projects 2,364 17,382 10,335 15,350 15,750 16,150 Total Pump Station Rehabilitation 5,100 750 21,606 19,800 19,000 0 Future Unidentified Capital Improv. 2,686 0 0 0 0 3,350 Transfer to Long-Term Debt Proceeds 0 0 0 0 0 0
Total CIP $15,000 $20,579 $35,416 $37,900 $35,000 $19,500 Less: Other Funding Sources
Operating Fund - Sewer (431) $0 $280 $2,087 $10,000 $10,000 $0 Connection Fee Fund - Sewer (434) 0 0 0 0 0 0
Capital Fund - Sewer 0 0 11,700 9,900 6,500 0
Long-Term Debt Proceeds Fund 0 4,299 4,628 0 0 0
Assumed Future SRF Loan 0 0 0 0 0 0
Assumed Revenue Bonds 0 0 0 0 0 0
Revenue Bonds 0 0 0 0 0 0
Total Other Funding Sources $0 $4,579 $18,416 $19,900 $16,500 $0 Rate Funded Capital $15,000 $16,000 $17,000 $18,000 $18,500 $19,500
1. CIP inflated by Department
A key component of this capital funding plan was to complete the RWCF Modification project as well as other rehabilitation and replacement upgrades. As shown in Table 3 -2, the funding of capital is provided through annual rate levels (“Rate Funded Capital”) and available reserves. In this way, no additional long-term debt is issued to fund the CIP during the Study period and the CIP is funded on a pay-as-you-go approach.
While the total amount of a project may vary from year to year, the wastewater capital funding plan has attempted to provide a consistent funding source for the replacement of deteriorating system assets. In this case, the wastewater utility’s rates will annually fund an amount of $15.0 million in FY 2023-24. As a point of reference, the Department’s annual depreciation expense was approximately $12.9 million in FY 2022-23. A desirable funding target for rate funded CIP is an amount equal to or greater than annual depreciation expense in order to approximately keep up with the rate of deterioration of the system assets. To continue this trend, the Department is committed to making an effort to increase this component and the rate funded capital is projected to increase annually to $19.5 million by FY 2028-29.
It is important to understand that the depreciation expense is not the same as the replacement cost. Thus, funding an amount which exceeds the depreciation expense is both prudent and appropriate. As noted, to help establish a prudent level of annual replacement funding through rates, HDR worked with Department staff to develop a funding plan for the CIP. In developing
ATTACHMENT A
Wastewater Revenue Requirement 21
City of Stockton – Comprehensive Wastewater Rate Study
this financial plan, HDR and the Department have attempted to minimize rate impacts while funding the planned capital projects of the Department.
3.2.5 Projection of Debt Service
The Department currently has three outstanding long-term debt issuances. In total, annual debt service payments will be approximately $7.8 million in FY 2023-24. It should be noted that a component of one of the issuances, the 2014 Revenue Bond, was used to expand the Department’s wastewater system for new customer growth. Given this, annual connection charge revenues are used to fund a portion of this annual debt service payment. The remaining annual debt service payment is funded through annual rate revenues. One of the recent debt issuances was issued for the RWCF upgrades and other system improvements that are being completed during this Study time period. The total annual debt service is funded through, and supported by, annual rate revenues. No new additional debt has been assumed for the purposes of the Study.
It is important to note that HDR is not advising the Department on the terms of any long-term debt issuances but rather identifying the overall funding needs. The Department is working with an independent financial advisor as well as City financial staff, to develop the overall financing plan to fund the capital improvement projects identified in the Study. Given this, HDR is not acting in a municipal advisor role to the Department for the issuance of any long-term borrowing.
3.2.6 Reserve Funding
The final component of the revenue requirement analysis is reserve funding. This can be described as additional transfers of revenue to reserve funds to maintain prudent ending fund balances or for future funding of specific or unanticipated projects. Additionally, any balance of funds after the expenses are paid is transferred to the operating fund to maintain minimum fund balances. The Department has a reserve policy in place to maintain six months of operating expenses in reserves, which is equal to approximately $36.3 million for FY 2023-24. The Study was developed to meet this target minimum over the review period (FY 2024-25 – FY 2028-29).
The Department also established a rate stabilization fund with the purpose of lessening the impacts to rate payers should additional expenses be incurred that could significantly increase rates as a result. As will be shown, even with the recommended rate adjustments, reserves are being used annually through the Study time period to smooth the overall rate revenue increases.
During the Study time period, reserve levels are being decreased and end slightly below minimum targets. However, it is important to note that the Department has $30 million in prior capital project appropriations that are not included in reserve balances for the purposes of the Study as these funds have been “set aside” to fund prior identified projects.
3.2.7 Summary of the Wastewater Revenue Requirement
Given the above projections of revenues and expenses, a summary of the wastewater revenue requirement analysis can be developed. In developing the revenue requirement analysis, consideration was given to the financial planning considerations of the Department. In particular, emphasis was placed on attempting to minimize rates, yet still have adequate funds to support the operational activities and funding of capital projects throughout the Study time period.
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Wastewater Revenue Requirement 22
City of Stockton – Comprehensive Wastewater Rate Study
Presented below in Table 3 - 3 is a summary of the Department’s projected wastewater revenue requirement. Detailed exhibits of this analysis can be found in the Technical Appendix (Exhibits 1 – 6).
Table 3 - 3
Summary of the Wastewater Revenue Requirement Analysis ($000) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Revenues
Rate Revenues $90,747 $91,655 $92,571 $93,497 $94,432 $95,376 Other Revenues 2,615 2,669 2,566 2,538 2,287 1,975
Total Revenues $93,362 $94,324 $95,137 $96,035 $96,719 $97,352 Expenses
O&M Expenses $72,510 $77,803 $80,837 $83,945 $87,123 $90,434 Rate Funded Capital 15,000 16,000 17,000 18,000 18,500 19,500 Net Annual Debt Service 5,687 7,502 7,683 7,684 7,686 7,688 To / (From) Reserves 166 (4,843) (2,830) (1,919) (550) 393 Total Expenses $93,362 $96,462 $102,691 $107,709 $112,759 $118,015 Bal./(Def.) of Funds $0 ($2,139) ($7,554) ($11,674) ($16,040) ($20,664) Bal. as a % of Rate Rev. 0.0% 2.3% 8.2% 12.5% 17.0% 21.7% Proposed Revenue
Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Add’l Rev. from Adjustment $0 $2,139 $7,554 $11,674 $16,040 $20,664 Total Bal./(Def.) of Funds $0 $0 $0 $0 $0 $0
As can be seen, the revenue requirement has summed the O&M, annual rate funded capital, net annual debt service, and reserve funding components. The total revenue requirement is then compared to the total revenues which include both rate revenues – at current rate levels – and other revenues.
From this comparison, a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the projected revenues from current rates to determine the level of rate adjustment needed to meet the revenue requirement. It is important to note the “Bal. / (Def.) of Funds” row is cumulative. That is, any adjustments in the initial years will reduce the deficiency in later years. Over the Study time period, the total deficiency in revenues is 21.7%. As shown, it is important to note that reserves are being used in FY 2024-25 through FY 2027-28 to maintain the rate revenue adjustments at 4%.
The revenue requirement in Table 3 - 3 has been developed to meet the financial planning objectives of the Department. More specifically, the Department desires to adequately and prudently fund its wastewater operating and capital needs. In doing so, rate revenue adjustments should avoid large adjustments in any single year. Table 3 - 3 has also included a set of proposed rate revenue adjustments (blue highlighted band) which are sufficient to meet the total revenue
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Wastewater Revenue Requirement 23
City of Stockton – Comprehensive Wastewater Rate Study
requirement over the projected time period. The proposed revenue adjustments are a function of assumed inflation over the time period, coupled with the need to increase capital improvement funding from rates (renewal and replacement funding), meet minimum reserve levels, fund annual debt service payments, and meet legally required debt service coverage ratios. Provided in Table 3 - 4 is a summary of the debt service coverage ratios (without connection fees) before and after the proposed rate adjustments. As a note, the minimum target debt service coverage ratio is 1.00.
Table 3 - 4
Summary of the Annual Debt Service Coverage Ratios
FY 2023-
24 FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Debt Service Coverage –
Before Rate Adjustment 2.68 1.72 1.46 1.24 0.98 0.71
Debt Service Coverage –
After Rate Adjustment 2.68 1.94 2.23 2.43 2.62 2.82
As can be seen in Table 3 - 4, with the proposed revenue adjustments, the Department exceeds the annual debt service coverage ratios. However, if wastewater revenue adjustments are not implemented, the Department will not have sufficient funding to prudently operate and maintain the wastewater system, or more importantly, meet annual debt service coverage requirements.
Over the five-year rate setting period, annual deficiencies range from $2.1 million to $20.7 million. It is important to note that the overall revenue adjustments may not reflect the final rate adjustments, or bill impacts, seen by the Department’s customers as the cost of service analysis will proportionally distribute the revenue requirement between the identified customer classes.
The overall revenue adjustment reflects the needed revenues for the system as a whole. The more detailed revenue requirement analysis is included in Exhibit 3 of the Technical Appendix.
3.3 Consultant’s Conclusions
Based on the revenue requirement analysis developed herein, HDR has recommended that the Department increase wastewater revenues over the next five-year period (FY 2024-25 – FY 2028- 29) by 4.0%, annually. HDR has reached this conclusion for the following reasons:
Revenue adjustments are necessary to fund the Department’s CIP needs, which are driven by the funding of replacement capital projects as well as completing the RWCF Modification Project.
Revenue adjustments are necessary to fund the Department’s annual debt service payments. Absent the proposed revenue adjustments, the Department will be unable to pay annual debt service or comply with the obligations of its outstanding debt.
The revenue adjustments are necessary in order to cover the annual inflationary costs related to the O&M expenses of the wastewater utility.
The proposed revenue adjustments maintain the Department’s strong financial health and provide long-term sustainable funding levels for the Department.
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City of Stockton – Comprehensive Wastewater Rate Study
In reaching this conclusion, HDR would recommend that the Department adopt the proposed revenue adjustments in order to provide sufficient funding for annual O&M and capital improvement projects over the next five-year period.
3.4 Summary
This section of the report has provided a discussion of the Department’s wastewater revenue requirement analysis. The revenue requirement analysis developed a revenue transition plan to support the Department’s O&M and capital needs. The next section will discuss the cost of service analysis developed for the Department’s wastewater utility.
ATTACHMENT A
Wastewater Cost of Service 25
City of Stockton – Comprehensive Wastewater Rate Study
4 Wastewater Cost of Service
4.1 Introduction
In the previous section, the revenue requirement analysis focused on the total sources and applications of the revenues required to adequately fund the Department’s wastewater utility.
This section will provide an overview of the cost of service analysis developed for the Department’s wastewater utility.
The wastewater cost of service analysis provides the proportional distribution of the total revenue requirement between the identified customer classes of service (e.g., Single Family and Condominiums, Multi-Family, Apartments, Commercial/Institutional, and Industrial) to meet the requirements of Proposition 218. The previously developed revenue requirement was utilized in the development of the cost of service analysis.
4.1.1 Objectives of a Cost of Service Analysis
There are two primary objectives in conducting a wastewater cost of service analysis:
Distribute the Department’s revenue requirement among the customer classes of service Derive average unit costs for subsequent rate designs by customer class of service The primary objective of the cost of service analysis is the proportional collection of the revenue requirement from the Department’s customer classes of service. The second rationale for conducting a cost of service analysis is to allow for the development of proposed rates that properly reflect the costs incurred by the Department and the impacts customers place on the wastewater system. For example, a wastewater utility typically incurs costs related to flow (wastewater volumes), strength (constituents in the wastewater), and customer cost components (billings and collections). Each of these types of costs may be collected in a slightly different manner to allow for the development of rates that collect costs in the same manner as they are incurred.
4.2 Determining the Customer Classes of Service
The first step in a cost of service analysis is to determine the customer classes of service. Based on the current rates, the classes of service used within the cost of service analysis are:
Single Family and Condominiums
Multi-Family
Apartments
Commercial/Institutional – Low Strength
Commercial/Institutional – Med Strength
Commercial/Institutional – High Strength
Schools
Industrial
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Wastewater Cost of Service 26
City of Stockton – Comprehensive Wastewater Rate Study
In determining classes of service for cost of service purposes, the objective is to group customers together into similar or homogeneous groups based upon facility requirements
and/or flow characteristics. HDR reviewed the current
customer characteristics and facility requirements to
determine the classes of service. In reviewing the customer classes of service, it was noted that the current groupings reflect the differences between customer types and are
consistent with typical industry practices. For example, the Department differentiates between the various residential customers (e.g., single-family, multi-family) and commercial customers (e.g., low strength, medium strength, high
strength), which reflects the differences in customer
characteristics, the impacts on the system, and system
requirements. These differences revolve around assumed
wastewater flow and/or strength as well as in administrational effort for serving different customers which all become the foundation for developing the unique customer classes of service. Provided in the following discussion is a more detailed review of the differences between the customer classes of service.
4.3 General Cost of Service
Procedures
In order to determine the cost to serve each customer class of service on the Department’s wastewater system, a cost of service analysis is conducted. A cost of service analysis utilizes a three-step approach to review costs, which is outlined in the Water Environment Federation Manual of Practice No. 27
(WEF MOP #27). These steps take the form of
functionalization, allocation, and distribution. Provided below is a detailed discussion of the wastewater cost of service Study conducted for the Department, and the specific steps taken within the analysis.
4.3.1 Functionalization of Costs
The first analytical step in the cost of service process is called functionalization. Functionalization is the arrangement of expenses and asset (plant) data by major operating functions (e.g., collection, pumping, treatment). Within this Study, the majority of the costs were functionalized by the Department’s records. For those that were not, HDR worked with Department staff to review and functionalize the costs.
Terminology of a Wastewater
Cost of Service Analysis
Functionalization – The
arrangement of the cost data by
functional category (e.g., collection,
pumping, treatment).
Allocation – The assignment of
functionalized costs to cost
components (e.g., volume,
strength, and customer related).
Distribution – Distributing the
allocated costs to each class of
service based upon each class’s
proportional contribution to that
specific cost component.
Volume Costs – Costs that are
allocated as volume related vary
with the total flow of wastewater
(e.g., power for pumping).
Strength Costs – Costs allocated as
strength related refer to the
wastewater treatment function.
Typically, strength-related costs are
further defined as carbonaceous
biochemical oxygen demand
(CBOD) and suspended solids (SS).
Different types of customers may
have high wastewater strength
characteristics, which costs more to
treat. Treatment facilities are
designed and sized around meeting
these treatment demands.
Customer Costs – Costs allocated as
customer related vary with the
number of customers on the
wastewater system (e.g., billing,
collecting and accounting costs).
Direct Assignment – Costs that can
be clearly identified as belonging to
a specific customer group or group
of customers.
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City of Stockton – Comprehensive Wastewater Rate Study
4.3.2 Allocation of Costs
The second analytical task performed in a wastewater cost of service analysis is the allocation of the costs. Allocation determines why the expenses were incurred or what type of need is being met. The following cost allocators were used to develop the Study:
Volume Related Costs: Volume related costs are those costs which tend to vary with the total quantity of wastewater collected and treated.
Strength Related Costs: Strength related costs are those costs associated with the additional handling and treatment of high “strength” wastewater. Strength is typically measured in carbonaceous biochemical oxygen demand2 (CBOD) and suspended solids3 (SS). Increased levels of CBOD or SS generally equate to increased treatment costs for most wastewater systems.
Customer Related Costs: Customer related costs vary with the addition or deletion of a customer or is a cost which is a function of the number of customers served. Customer related costs typically include the costs of billing, collecting, and accounting.
Revenue Related Costs: Some costs associated with the utility may vary with the amount of revenue received by the utility. An example of a revenue related cost would be a utility tax, which is based on gross utility revenue.
The basis, or methodology, for the allocation process is outlined in the WEF MOP #27. The methodology provided in the manual was then applied to the Department’s specific circumstances, customers, costs, and operations to develop the appropriate allocation approach.
4.3.3 Development of Distribution Factors
Once the allocation process is complete and the customer groups have been defined, the various allocated costs are distributed to each customer class of service. The Department’s allocated costs were proportionally distributed to the customer classes of service using the following distribution factors.
Volume Distribution Factor: Volume related costs are generally distributed on the basis of contributions to wastewater flows. Wastewater flows are not typically metered and so often, a surrogate must be used in order to estimate a customer class’s contribution. For residential customers (Single-Family and Condominiums, Multi-Family, and Apartments), the Department’s planning documents estimate water consumption to be approximately 112 gallons per person per day (GPD) and three people per household. In addition, there are also assumptions made on the return factor (or how much of the water consumed by a certain customer class is returned to the wastewater system as sewer flow) for each customer class. This figure was taken from the Department’s planning documents. Due to past drought and conservation efforts, the flow estimates were then adjusted down to reflect the fact that the winter water usage is less than the average monthly water use 2 CBOD is the amount of dissolved oxygen that must be present in water in order for microorganisms to decompose the organic carbon in the wastewater.
3 SS is the entire amount of organic and inorganic particles dispersed in wastewater.
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and that a portion of the residential water usage during these months is not returned to the wastewater system. Billed wastewater flow – which is based on water usage - was used for commercial (low, medium, high) as well as industrial customers. The commercial and industrial customers’ flows were also adjusted based on the fact that although to a lesser level, the average monthly usage includes some outdoor watering. For schools, which are billed on an average attendance rate, the volume assumptions were based on the equivalent volumes for schools based on standard engineering design manuals. The calculation of the volume distribution factor is shown in Exhibit 7 of the Technical Appendix.
Strength Distribution Factor: Strength related costs are allocated between CBOD and SS.
These costs are distributed to each of the classes of service based upon the assumed domestic strength level of 275 milligrams per liter (mg/l) for CBOD and SS at 390 mg/l.
Commercial low strength was set equal to domestic levels while the commercial medium and high strength customers were adjusted (increased) to reflect the higher strength wastewater discharged to the Department’s wastewater system. Industrial customers have a much higher strength wastewater that is discharged to the City’s wastewater system. For the Study, it was assumed that the CBOD and SS strengths were 525 mg/l and 625 mg/l, respectively to reflect the higher strength levels of these customers. The strength levels in total, for each customer class of service, were utilized to calculate the CBOD and SS pounds removed based on the actual pounds removed at the wastewater treatment plant over a 12-month period as provided in Department wastewater treatment plant reports. Exhibit 8 in the Technical Appendix provides the calculation of the strength distribution factor.
Customer Distribution Factor: Customer costs within the cost of service analysis are distributed to the various customer classes of service based upon their respective number of customer accounts. Two types of customer distribution factors were developed ൞ actual and weighted. The actual customer distribution factor assumes that there is no disproportionate cost associated with serving a customer (e.g., postage for bills is the same regardless of the size or usage of the customer). In contrast, a weighted customer distribution factor assumes that there is some disproportionality associated with serving different types of customers and attempts to estimate the level of difference in serving the customers. It is important to note that this Study assumes no weighting for differences between customers. Exhibit 9 of the Technical Appendix provides the calculation of the customer distribution factor.
Revenue Related Distribution Factor: The revenue related distribution factor was developed from the projected rate revenues for FY 2024-25 for each customer class of service as developed in Exhibit 3. A summary of the revenue distribution factor is provided in Exhibit 10 of the Technical Appendix.
The development of the distribution factors is based on generally accepted principles as outlined in the WEF MOP #27.
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4.4 Summary of the Wastewater Cost of Service Analysis
In summary form, the cost of service analysis began by functionalizing the Department’s facility asset records and O&M expenses. The functionalized facility and expense accounts were then allocated to the appropriate cost component(s) based on generally accepted methods and the Department’s specific system operations and costs. Provided below is a summary of the allocation of the Department’s FY 2024-25 test period revenue requirement using the methodology outlined in the WEF MOP #27 as well as the Department’s specific facility requirements and operations. Provided in Exhibits 11 and 12 of the Technical Appendix is a detailed summary of the allocation of the Department’s infrastructure and revenue requirement.
The allocation of the individual line items of the revenue requirement are summed to develop the results in Table 4 – 1.
Table 4 – 1
Summary of the Allocation of the FY 2024-25 Revenue Requirement ($000’s) Total Volume CBOD SS Customer
Revenue
Related
Direct
Assignment
$93,793 $23,540 $14,034 $14,731 $41,488 $0 $0
As shown in Table 4 – 1, the total revenue requirement for FY 2024-25 has been allocated to the appropriate cost components based on generally accepted methodologies. Next, the individual allocation totals were then distributed proportionally to the identified customer groups based on the appropriate distribution factors.
For example, volume-related costs were distributed based on each customer class’s proportional share of total wastewater contributions. Provided in Table 4 - 2 is a summary of the volume distribution factor and distribution of the volume related costs.
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Table 4 – 2
Summary of the Volume Distribution Factor and
Distribution of Volume Related Costs
% of Total
Volume
Costs
Annual
Flow (CCF)
# of
Customers
Unit Cost
($ / CCF)
Unit Cost
($ / Cust)
Residential
Single Family & Condo 62.5% $14,711,197 85,480 $14.34
Multi-Family 5.4% $1,276,103 8,763 12.14
Apartments 13.6% $3,200,444 30,219 8.83
Total Residential 81.5% $19,187,743 124,462
Com / Inst
Low Strength 0.7% $154,008 136,240 $1.13
Medium Strength 6.6% 1,565,357 1,375,032 1.14
High Strength 2.4% 569,356 381,904 1.49
Schools1 1.8% 422,275 57,886 0.61
Total Com / Inst 11.5% $2,710,996 1,951,062
Industrial 7.0% $1,641,573 1,129,479 $1.45
Total 100.0% $23,540,312 3,080,541
1 - Schools are on an average daily attendance (ADA) basis A similar approach is used to distribute the strength related costs, both CBOD and SS. Provided in Tables 4 - 3 and 4 - 4 are the strength distribution factors and distribution of strength related costs.
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Table 4 – 3
Summary of the CBOD Distribution Factor and Distribution CBOD Related Costs % of Total
CBOD
Costs
Annual
Flow (CCF)
# of
Customers
Unit Cost
($ / CCF)
Unit Cost
($ / Cust)
Residential
Single Family & Condo 56.5% $7,930,152 85,480 $7.73
Multi-Family 4.9% 687,890 8,763 6.54
Apartments 12.3% 1,725,217 30,219 4.76
Total Residential 73.7% $10,343,259 124,462
Com / Inst
U Low Strength 0.6% $83,019 136,240 $0.61
Medium Strength 7.9% 1,104,630 1,375,032 0.80
High Strength 4.2% 585,928 381,904 1.53
Schools1 1.6% 227,630 57,886 0.33
Total Com / Inst 14.3% $2,001,206 1,951,062
Industrial 12.0% $1,689,352 1,129,479 $1.50
Total 100.0% $14,033,818 3,080,541
1 - Schools are on an average daily attendance (ADA) basis Table 4 – 4
Summary of the SS Distribution Factor and Distribution SS Related Costs % of Total
SS
Costs
Annual
flow (CCF)
# of
Customers
Unit Cost
($ / CCF)
Unit Cost
($ / Cust)
Residential
Single Family & Condo 58.3% $8,594,773 85,480 $8.38
Multi-Family 5.1% 745,542 8,763 7.09
Apartments 12.7% 1,869,806 30,219 5.16
Total Residential 76.1% $11,210,121 124,462
Com / Inst
Low Strength 0.6% $89,977 136,240 $0.66
Medium Strength 7.6% 1,113,855 1,375,032 0.81
High Strength 3.6% 533,072 381,904 1.40
Schools1 1.7% 246,707 57,886 0.36
Total Com / Inst 13.5% $1,983,611 1,951,062
Industrial 10.4% $1,536,958 1,129,479 $1.36
Total 100.0% $14,730,690 3,080,541
1 - Schools are on an average daily attendance (ADA) basis
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Finally, customer related costs are distributed based on the customer distribution factors.
Provided in Table 4 - 5 is a summary of the distributed customer costs.
Table 4 – 5
Summary of the Customer Distribution Factor and Distributed Customer Related Costs
Customer Related
Costs Customers Total ($ / Customer)
Residential
Single Family & Condo $27,599,576 85,480 $26.91
Multi-Family 2,829,376 8,763 26.91
Apartments 9,757,036 30,219 26.91
Total Residential $40,185,988 124,462
Com / Inst
Low Strength $66,513 206 $26.91
Medium Strength 1,052,993 3,261 26.91
High Strength 144,883 449 26.91
Schools 29,705 92 26.91
Total Com / Inst $1,294,093 4,008
Industrial $8,341 26 $26.91
Total $41,488,422 128,496
The total costs allocated to each cost component as outlined above were proportionally distributed between the customer classes using the previously mentioned distribution factors.
Provided below in Table 4 - 6 is a summary of the total distribution of costs, by cost component, to the customer classes of service.
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Table 4 – 6
Summary of the Distribution of the FY 2024-25 Revenue Requirement by Customer Class ($000’s) Residential Commercial / Institutional
Single Family
& Condos
MultiFamily Apartments Low
Strength
Medium
Strength
High
Strength Schools Industrial Total
Volume $14,711 $1,276 $3,200 $154 $1,565 $569 $422 $1,642 $23,540 BOD 7,930 688 1,725 83 1,105 586 228 1,689 14,034
TSS 8,595 746 1,870 90 1,114 533 247 1,537 14,731
Customer 27,600 2,829 9,757 67 1,053 145 30 8 41,488
RR / DA 0 0 0 0 0 0 0 0 0
Total $58,836 $5,539 $16,553 $394 $4,837 $1,833 $926 $4,876 $93,793
ATTACHMENT A
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City of Stockton – Comprehensive Wastewater Rate Study
The distributed expenses for each customer class were then aggregated to determine each customer class’s overall revenue responsibility. Using the rate revenues from Section 3.2.2 plus a year of assumed customer growth as well as the allocated costs from Table 4 - 6, Table 4 - 7 summarizes the cost of service analysis.
Table 4 - 7
Summary of the FY 2024-25 Wastewater Cost of Service Analysis ($000) Class of Service
Current
Rate Revenues
Distributed
Costs
$
Difference
%
Difference
Single Family & Condo $57,144 $58,836 ($1,691) 3.0%
Multi-Family 5,496 5,539 (43) 0.8%
Apartments 16,548 16,553 (4) 0.0%
Com / Inst
Low Strength $372 $394 ($21) 5.7%
Medium Strength 4,807 4,837 (30) 0.6%
High Strength 1,895 1,833 62 -3.3%
Schools 933 926 7 -0.7%
Industrial 4,459 4,876 (417) 9.4%
Total $91,655 $93,793 ($2,139) 2.3%
The results of the cost of service analysis indicate cost differences between the customer classes of service. When reviewing the results of the cost of service analysis, it is important to understand that the results will not be “exact” each time the Department updates its cost of service analysis.
This is due to changing customer characteristics, external impacts such as drought conditions, and other changes in how the Department incurs costs. However, the analysis above provides the best evidence supporting how to allocate costs on a go-forward basis, and reasonably predicts how customers cause the City to incur cost.
The allocated and distributed costs for each customer class of service are used to develop the proposed rates for the test period, which in this case is FY 2024-25. The total costs are divided by the billing units (e.g., number of customers, water consumption) to develop average unit costs, which are the basis for the rate designs. Provided in Table 4 – 8 is a summary of the unit costs, which are based on the proposed rate structure for each customer class of service. The proposed rate structure for the residential customers is a flat monthly rate per living unit. As a result, the total distributed costs for each residential customer class (single-family and condominiums, multi-family, and apartments) are divided by the number of living units. This results in the proposed rates for residential customers. For commercial / institutional customers, the customer related costs are divided by the number of accounts while the volume and strength costs are divided by the total billed water consumption. This results in a monthly fixed charge and variable charge per hundred cubic feet (CCF) of water consumption, which is the basis for the billing of the rate structure. The development of the cost of service and unit costs are provided in Exhibits 14 and 15 of the Technical Appendix.
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Table 4 – 8
Summary of the FY 2024-25 Wastewater Average Unit Costs Residential Commercial / Institutional
Single Family
& Condos Multi-Family Apartments Low Strength
Medium
Strength High Strength Schools Industrial
Variable
($/CCF) $0.00 $0.00 $0.00 $2.40 $2.75 $4.42 $1.29 $4.31 Fixed
($/Dwelling
Unit or
$/Account $57.36 $52.67 $45.65 $26.91 $26.91 $26.91 $26.91 $26.91
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4.5 Consultant’s Conclusions and Recommendations
HDR is recommending that the Department implement the cost of service adjustments and realign the rate structures, at this time. This realignment is a natural progression in designing rates as the results of the calculation may change between analyses based on consumption habits, the manner in which costs are incurred, system design or operation, etc. Given this, the proposed rates reflect the results of the current cost of service analysis.
Some of the variables that are impacting the cost distributions are the trend of declining per capita water consumption for residential customers, past drought conditions in California, changes in industrial customers, and other customer class characteristics. These conditions certainly have an impact on consumptive use and cost distributions and may not reflect future winter water consumption patterns, which are used to establish the basis for distributing costs for wastewater related services over the next five-year period. However, customer consumption patterns generally do not return to “typical” levels in the short-term. Given this, the results of the cost of service will provide the Department with cost-based and proportional rates that reflect current customer characteristics. It should also be noted that a cost of service analysis reflects a single point in time. It is recommended that the Department closely follow the results of subsequent cost of service analyses in order to gauge the effects of these outside forces.
4.6 Summary
This section of the Study has provided a summary of the cost of service analysis developed for the Department. This analysis was prepared using generally accepted cost of service techniques and principles. The next section of the report will review the present and proposed wastewater rates for the Department.
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5 Wastewater Rate Design Analysis
5.1 Introduction
The final step of the Department’s comprehensive wastewater rate study is the design of rates to collect the desired levels of revenues, based on the results of the revenue requirement and cost of service analyses. In reviewing the Department’s rates, consideration is given to the level of the rates and the structure of the rates as developed in the prior two analyses.
5.2 Rate Design Criteria and Considerations
Rates must be set in accordance with Proposition 218, and in a manner that proportionally allocates the utility’s cost of service to each parcel through their respective rates. A utility may consider additional criteria, provided they do not result in rates that are not based on the proportional cost of service. Some of these rate design criteria are listed below:
Rates which are easy to understand from the customer’s perspective Rates which are easy for the utility to administer
Consideration of the customer’s ability to pay
Continuity, over time, of the rate making philosophy
Policy considerations (encourage efficient use, economic development, etc.) Provide revenue stability from month to month and year to year Promote efficient allocation of the resource
Non-discriminatory (cost-based)
Compliant with State law
The Department may consider various cost-based rate structures that have incidental benefits of sending proper price signals as to what their usage or volumetric contributions are costing. This goal may be approached through rate level and structure, provided the resulting rates reflect the proportional cost of service. When developing the proposed rate designs, all the above-listed criteria were taken into consideration. However, it should be noted that it is difficult, if not impossible, to design a rate that meets all the goals and objectives listed above. In designing rates, there are always trade-offs between these goals and objectives.
5.3 Development of Cost-Based Wastewater Rates
Calculating cost-based and proportional rates is of paramount importance in developing the proposed wastewater rates. While always a key consideration in developing rates, meeting the legal requirements and documenting the steps taken to meet said requirements has been in the forefront with the recent legal challenges in the State of California on utility rates. Given this, the Department’s proposed wastewater rates have been developed to meet the legal requirements of California Constitution Article XIII D, Section 6 (Article XIII D). A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionately allocated among the various customer classes of service and the customers within each class.
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HDR would point out that there is no single methodology for equitably assigning costs to the various customer groups. The Water Environment Federation Manual of Practice #27 (WEF MOP #27) provides various methodologies which may be used to establish cost-based rates. Article XIII D is not prescriptive and does not provide a specific methodology for establishing rates. Given that, HDR developed the Department’s proposed wastewater rates based on generally accepted rate setting methodologies to meet the requirements of Article XIII D.
HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following:
The revenue derived from wastewater rates does not exceed the funds required to provide the property related service (i.e., wastewater service). The proposed rates are designed to collect the overall revenue requirement of the Department’s wastewater system.
The revenues derived from wastewater rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the Department’s wastewater rates are used exclusively to operate, maintain and fund the Department’s wastewater system.
The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel. Section 4 of the Study focused exclusively on the issue of proportional assignment of costs to customer classes of service. The proposed rates have appropriately grouped customers into customer classes of service (residential, commercial/institutional, industrial) that reflect the varying consumption patterns and system requirements (i.e., the benefits they receive from and burdens they place on the system) of each customer class of service. The grouping of customers and rates into these classes of service creates the equity and fairness expected under Proposition 218 by having differing rates by customer classes of service which reflect both the level of revenue to be collected by the utility and the manner in which these costs are incurred and equitably assigned to customer classes of service and customers within each class of service based upon their proportional impacts.
5.4 Overview of the Proposed Rate Adjustments
As outlined in the revenue requirement analysis, the overall revenue adjustment for the Department’s wastewater utility is 4.0% annually for FY 2024-25 through FY 2028-29. This provides the overall revenue needs of the wastewater utility. Next, the cost of service analysis proportionately distributed the revenue requirement to the customer classes of service. Given the results of these analyses, the overall rate adjustment for each customer class of service can be developed. Provided below in Table 5 – 1 is a summary of the FY 2024-25 revenue adjustments for each customer class of service based on the overall system revenue needs and cost of service results. Important to note is that due to the implementation period of FY 2024-25 rates, assuming mid fiscal year (December 2024), the total system adjustment reflects collecting less revenue in FY 2024-25, which in turn impacts the results of the cost of service analysis. These cost of service
ATTACHMENT A
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results will be the basis for developing the proposed rates, and subsequent revenues for each customer class of service.
ATTACHMENT A
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Table 5 – 1
Summary of the Wastewater FY 2024-25 Revenue Adjustments by Class of Service Residential Commercial / Institutional
Total
System
Single Family
& Condos Multi-Family Apartments Low Strength
Medium
Strength High Strength Schools Industrial
2.3% 3.0% 0.8% 0.0% 5.7% 0.6% -3.3% -0.7% 9.4%
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5.5 Overview of the Current Wastewater Rate Structure
The Department currently has a rate structure for each of the customer classes of service. For Single Family and Condominiums, Multi-Family, and Apartments customers, they are charged a flat monthly charge. There is also a City customer and Non-City customer rate for the fixed charge where the Non-City customers have a discount based on contractual agreements as the Non-City customers get a credit for the collection system that they do not benefit from. Although there is no water consumption related charge, the development of the volume allocation factor (described in Section 4) uses winter water use estimations where the total is tied to influent metered data in order to validate flow assumptions. A flat monthly charge is the most common structure used for residential wastewater customers.
Commercial/Institutional has a similar structure to Residential customers relating to the fixed charge. All sub-classes – low, medium, high strength, and schools – pay the same flat fixed charge.
As noted above, there is a discount for non-city customers for the collection system that they do not benefit from based on existing contractual agreements with these customers. The Commercial/Institutional rate structure also includes a volume charge, by sub-class, for all billed water consumption. The volume charge is based on the strength of the wastewater to reflect the increased costs of treatment associated with higher strength wastewater.
The industrial rate structure is more complex than the Residential and Commercial/Institutional rate structures. Like the other customer classes, there is a flat charge for all customers.
Additionally, the Industrial class rate has two main components, the stand-by charges to represent the capacity requirements of the customer and the O&M charges based on the actual usage. Each major component is comprised of a flow charge on a per million-gallon (mg) basis and strength charges for BOD and TSS charged on a per 1,000 pound basis.
5.6 Summary of the Wastewater Rates
Section 5.7 provided a summary of the Department’s current wastewater rate structures. In discussion with Department staff and reviewing industry standard approaches, no changes to the rate structures of any of the customer classes are proposed at this time. Provided in the following tables are the proposed rate structures for each customer class of service. These proposed rates reflect the cost-based and proportional distribution of the costs of providing service. Important to note is that the rates for FY 2024-25 are based on the average unit costs developed in the cost of service analysis. The rates thereafter are increased by the annual system revenue adjustment.
However, it should be noted that the unit costs provided in Table 4 - 8 are the average unit costs, which include both City and Non-City customers. Therefore, with the credit included for non-city customers, the Non-City rate is slightly lower than the average unit costs, and City customer rates are slightly higher.
Table 5 – 2 provides a summary of the current and proposed residential wastewater rates.
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Table 5 – 2
Summary of the Present and Proposed Residential Wastewater Rates ($/Living Unit)
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
Provided in Table 5 - 3 is a summary of the current and proposed Commercial/Institutional rates.
The rate structure includes a monthly fixed charge for City and Non-City customers and a consumption charge based on the customer’s classification between low, medium, or high strength or schools.
Table 5 – 3
Summary of the Present and Proposed Commercial/Institutional Wastewater Rates
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Base Charge ($/Account)
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge ($/CCF)
Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81
Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21
High Strength 4.54 4.42 4.60 4.78 4.97 5.17
Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
The Industrial rates were increased according to the results of the cost of service analysis. Table 5 – 4 below shows a summary of the present and proposed Industrial rates.
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Table 5 – 4
Summary of the Present and Proposed Industrial Wastewater Rates Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Admin / Stand-by Charge
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow - $ / mg 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40 BOD - $ / 1,000 lbs 140.13 153.25 159.38 165.76 172.39 179.29 SS - $ / 1,000 lbs 102.88 112.51 117.01 121.69 126.56 131.62 Consumption Charge
Flow - $ / mg $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 BOD - $ / 1,000 lbs 52.14 57.02 59.30 61.67 64.14 66.71 SS - $ / 1,000 lbs 83.45 91.26 94.91 98.71 102.66 106.77
5.7 Summary of the Wastewater Rate Design
The Department’s present wastewater rate structures are contemporary in design and reflect the rate structures used by other similar utilities in California, both locally and statewide. Based on the Department’s system and customer characteristics, the proposed wastewater rates appropriately reflect the cost to provide service and are proportionally distributed between the customer classes of service. Full and complete technical appendices of the development of the comprehensive wastewater rate study and the proposed revenue adjustments can be found in the technical appendices of this report.
ATTACHMENT A
Technical Appendix
City of Stockton – Comprehensive Wastewater Rate Study
Technical Appendix – Wastewater
ATTACHMENT A
City of Stockton
Wastewater Rate Study
Proforma Analysis
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Revenue
Rate Revenue $90,747,163 $91,654,635 $92,571,181 $93,496,893 $94,431,862 $95,376,180 $96,329,942 $97,293,241 $98,266,174 $99,248,836 Add'l Revenue After Rate Adj. 0 2,138,608 7,553,808 11,674,396 16,040,060 20,663,526 25,558,166 30,738,027 36,217,870 42,013,204 Other Revenues 2,615,296 2,669,108 2,565,533 2,538,151 2,287,009 1,975,389 2,000,521 2,063,306 2,167,865 2,315,536 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Revenue $93,362,459 $96,462,351 $102,690,523 $107,709,440 $112,758,930 $118,015,095 $123,888,629 $130,094,575 $136,651,909 $143,577,577 Expenses
O&M Expenses
Utility Billing $3,292,987 $3,558,330 $3,689,193 $3,822,386 $3,957,183 $4,097,448 $4,241,957 $4,392,385 $4,549,031 $4,712,213 Administration 4,762,007 4,919,704 5,101,436 5,288,087 5,481,819 5,683,229 5,869,798 6,063,146 6,263,567 6,471,371 Engineering Services 2,215,365 2,498,910 2,597,212 2,696,554 2,799,983 2,908,089 3,018,817 3,134,591 3,255,694 3,382,430 Treatment Operations 29,082,614 33,142,717 34,449,461 35,799,351 37,180,655 38,618,910 40,003,521 41,442,341 42,937,747 44,492,232 Sanitary Sewer Collections 13,919,131 14,452,656 14,999,362 15,555,647 16,129,041 16,725,967 17,305,387 17,907,687 18,533,960 19,185,360 Laboratory 1,887,873 1,636,495 1,699,320 1,763,131 1,828,920 1,897,521 1,965,899 2,037,162 2,111,461 2,188,954 Other Support Services 1,019,410 1,318,244 1,370,670 1,423,385 1,478,521 1,536,213 1,596,607 1,659,856 1,726,126 1,795,593 Environmental Control 1,531,841 1,595,443 1,656,900 1,719,086 1,783,407 1,850,508 1,918,409 1,989,239 2,063,151 2,140,312 Treatment Plant Maintenance 7,522,387 6,924,699 7,198,563 7,476,067 7,751,825 8,039,100 8,326,311 8,625,352 8,936,814 9,261,319 Sanitary Pump Stations 5,902,415 6,080,631 6,336,403 6,598,788 6,866,088 7,145,468 7,434,257 7,736,160 8,051,851 8,382,047 Regulatory Compliance 152,339 240,524 249,741 259,044 268,739 278,865 289,446 300,507 312,075 324,178 Safety Services 545,197 520,738 539,955 559,581 578,962 599,096 619,486 640,665 662,669 685,536 SCADA Services 487,653 719,437 746,422 773,947 801,027 829,186 857,983 887,933 919,090 951,516 Outreach & Training Services 188,771 194,865 202,150 209,603 216,765 224,200 231,789 239,670 247,855 256,358 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total O & M Expenses $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419 Taxes
Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419 Funds Available for Debt Service $20,852,469 $18,658,958 $21,853,736 $23,764,783 $25,635,997 $27,581,295 $30,208,961 $33,037,880 $36,080,817 $39,348,157 Plus Connection Fees 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Funds Available for Debt Service $23,646,784 $21,453,273 $24,648,051 $26,559,098 $28,430,312 $30,375,610 $33,003,276 $35,832,195 $38,875,132 $42,142,472 Debt Service
Wastewater Revenue Refunding Bonds, 2014 Revenue Bond $6,486,375 $6,698,250 $6,692,375 $6,693,250 $6,695,000 $6,696,875 $6,693,250 $0 $0 $0 Regional Wastewater Facility Modification - N18126CA WIFIA Loan 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 5,588,884 5,588,573 5,588,259 Regional Wastewater Control Facilities (SRF) 0 1,603,318 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 Assumed Future SRF Loan 0 0 0 0 0 0 0 0 0 0
Asssumed Revenue Bond 0 0 0 0 0 0 0 0 0 0
Additional Revenue Bond 0 0 0 0 0 0 0 0 0 0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Debt Service $7,782,375 $9,597,568 $9,779,115 $9,779,990 $9,781,740 $9,783,615 $9,779,990 $7,379,624 $7,379,313 $7,378,999 Total Expenses $80,292,365 $87,400,961 $90,615,902 $93,724,647 $96,904,673 $100,217,415 $103,459,658 $104,436,319 $107,950,404 $111,608,418 Funds Available for Other Uses $13,070,094 $9,061,390 $12,074,621 $13,984,793 $15,854,257 $17,797,680 $20,428,971 $25,658,256 $28,701,504 $31,969,159 DSC Ratio (No Connection Fees) 2.68 1.94 2.23 2.43 2.62 2.82 3.09 4.48 4.89 5.33 DSC Ratio (With Connection Fees) 3.04 2.24 2.52 2.72 2.91 3.10 3.37 4.86 5.27 5.71 DSC Ratio (With Conn Fee & Rate Stabilization) 4.73 3.62 3.90 4.11 4.31 4.52 4.81 6.77 7.20 7.67 Ending Reserve Fund Balances
Operating Cash - 431 $39,624,380 $34,501,767 $29,584,641 $17,665,170 $7,115,164 $7,508,580 $9,533,287 $13,691,543 $19,893,047 $28,362,206 Capital Project Fund 39,316,723 61,518,390 50,492,074 41,146,495 35,090,460 35,441,365 35,795,778 36,153,736 36,515,273 36,880,426 Long-Term Debt Proceeds Fund 8,927,426 4,628,267 (0) (0) (0) (0) (0) (0) (0) (0) Connection Fee Fund - 434 6,206,899 6,971,039 7,742,821 8,522,321 9,309,616 10,104,784 10,907,903 13,825,269 16,771,808 19,747,813 Rate Stablization Fund 13,328,208 13,461,490 13,596,105 13,732,066 13,869,387 14,008,081 14,148,161 14,289,643 14,432,539 14,576,865 ---------------- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Ending Reserve Fund Balances $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 $99,567,310 Budget
DRAFT ATTACHMENT A
Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Revenues
Rate Revenues $90,747,163 $91,654,635 $92,571,181 $93,496,893 $94,431,862 $95,376,180 $96,329,942 $97,293,241 $98,266,174 $99,248,836 Miscellaneous Revenues 2,615,296 2,669,108 2,565,533 2,538,151 2,287,009 1,975,389 2,000,521 2,063,306 2,167,865 2,315,536 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Revenues $93,362,459 $94,323,743 $95,136,714 $96,035,044 $96,718,870 $97,351,569 $98,330,463 $99,356,548 $100,434,038 $101,564,372 Expenses
Utility Billing $3,292,987 $3,558,330 $3,689,193 $3,822,386 $3,957,183 $4,097,448 $4,241,957 $4,392,385 $4,549,031 $4,712,213 Administration 4,762,007 4,919,704 5,101,436 5,288,087 5,481,819 5,683,229 5,869,798 6,063,146 6,263,567 6,471,371 Engineering Services 2,215,365 2,498,910 2,597,212 2,696,554 2,799,983 2,908,089 3,018,817 3,134,591 3,255,694 3,382,430 Treatment Operations 29,082,614 33,142,717 34,449,461 35,799,351 37,180,655 38,618,910 40,003,521 41,442,341 42,937,747 44,492,232 Sanitary Sewer Collections 13,919,131 14,452,656 14,999,362 15,555,647 16,129,041 16,725,967 17,305,387 17,907,687 18,533,960 19,185,360 Laboratory 1,887,873 1,636,495 1,699,320 1,763,131 1,828,920 1,897,521 1,965,899 2,037,162 2,111,461 2,188,954 Other Support Services 1,019,410 1,318,244 1,370,670 1,423,385 1,478,521 1,536,213 1,596,607 1,659,856 1,726,126 1,795,593 Environmental Control 1,531,841 1,595,443 1,656,900 1,719,086 1,783,407 1,850,508 1,918,409 1,989,239 2,063,151 2,140,312 Treatment Plant Maintenance 7,522,387 6,924,699 7,198,563 7,476,067 7,751,825 8,039,100 8,326,311 8,625,352 8,936,814 9,261,319 Sanitary Pump Stations 5,902,415 6,080,631 6,336,403 6,598,788 6,866,088 7,145,468 7,434,257 7,736,160 8,051,851 8,382,047 Regulatory Compliance 152,339 240,524 249,741 259,044 268,739 278,865 289,446 300,507 312,075 324,178 Safety Services 545,197 520,738 539,955 559,581 578,962 599,096 619,486 640,665 662,669 685,536 SCADA Services 487,653 719,437 746,422 773,947 801,027 829,186 857,983 887,933 919,090 951,516 Outreach & Training Services 188,771 194,865 202,150 209,603 216,765 224,200 231,789 239,670 247,855 256,358 Total O&M Expenses $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419 Taxes & Transfers 0 0 0 0 0 0 0 0 0 0
Rate Funded Capital 15,000,000 16,000,000 17,000,000 18,000,000 18,500,000 19,500,000 20,500,000 21,500,000 22,500,000 23,500,000 Net Debt Service 5,686,639 7,501,832 7,683,379 7,684,254 7,686,004 7,687,879 7,684,254 7,379,624 7,379,313 7,378,999 To / (From) Reserves 165,830 (4,842,874) (2,829,643) (1,919,471) (550,007) 393,416 2,024,707 4,158,256 6,201,504 8,469,159 Total Revenue Requirement $93,362,459 $96,462,351 $102,690,523 $107,709,440 $112,758,930 $118,015,095 $123,888,629 $130,094,575 $136,651,909 $143,577,577 Bal /(Def) of Funds $0 ($2,138,608) ($7,553,808) ($11,674,396) ($16,040,060) ($20,663,526) ($25,558,166) ($30,738,027) ($36,217,870) ($42,013,204) Proposed Rate Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Add'l Revenue with Rate Adj $0 $2,138,608 $7,553,808 $11,674,396 $16,040,060 $20,663,526 $25,558,166 $30,738,027 $36,217,870 $42,013,204 Bal / (Def) After Rate Adj $0 $0 ($0) ($0) $0 $0 $0 $0 $0 $0 Average Residential Customer Bill
Customer Bill on Proposed Adj. $55.68 $57.91 $60.22 $62.63 $65.14 $67.74 $70.45 $73.27 $76.20 $79.25 Bill Difference - Monthly 2.23 2.32 2.41 2.51 2.61 2.71 2.82 2.93 3.05 Cumulative Bill Difference 2.23 4.54 6.95 9.46 12.06 14.77 17.59 20.52 23.57 Debt Service Coverage Ratio (all debt) - No Connection Fees Before Rate Adjustment 2.68 1.72 1.46 1.24 0.98 0.71 0.48 0.31 0.00 0.00 After Proposed Rate Adjustment 2.68 1.94 2.23 2.43 2.62 2.82 3.09 4.48 4.89 5.33 Debt Service Coverage Ratio (all debt) - Plus Connection Fees Before Rate Adjustment 3.04 2.01 1.75 1.52 1.27 0.99 0.76 0.69 0.36 0.02 After Proposed Rate Adjustment 3.04 2.24 2.52 2.72 2.91 3.10 3.37 4.86 5.27 5.71 Ending Fund Balance $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 $99,567,310 Target Minimum - 6 mo. of O&M $36,254,995 $38,901,696 $40,418,393 $41,972,328 $43,561,467 $45,216,900 $46,839,834 $48,528,347 $50,285,546 $52,114,710 Budget
City of Stockton
Summary of the Revenue Requirement
Exhibit 1
Wastewater Rate Study
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Escalation Factors
Exhibit 2
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Revenues
As Customer Growth Customer Growth Calculated 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% As Flat Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% As Misc / Other Revenues Misc / Other Revenues Budget 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Expenses
As Labor Labor Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office As Benefits - Medical Benefits - Medical Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office As Benefits - Retirement Benefits - Retirement Budget Budget 7.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Provided by Budget Office As Benefits - Other Benefits - Other Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office As Professional Services Professional Services Budget Budget 3.5% 3.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% As Materials & Supplies Materials & Supplies Budget Budget 3.5% 3.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% As Equipment Equipment Budget Budget 4.0% 4.0% 4.0% 4.0% 3.0% 3.0% 3.0% 3.0% As Chemicals Chemicals Budget Budget 4.0% 4.0% 4.0% 4.0% 3.0% 3.0% 3.0% 3.0% As Electricity Electricity Budget Budget 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% As Utilities Utilities Budget Budget 4.0% 4.0% 4.0% 4.0% 3.5% 3.5% 3.5% 3.5% As Insurance Insurance Budget Budget 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% Provided by Budget Office As Miscellaneous Miscellaneous Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% As Average O&M Average O&M N/A 7.3% 3.9% 3.8% 3.8% 3.8% 3.6% 3.6% 3.6% 3.6% Interest 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% New Debt Service Assumptions
Revenue Bond
Term in Years 30 30 30 30 30 30 30 30 30 30
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Low Interest Loan
Term in Years 30 30 30 30 30 30 30 30 30 30
Rate 0.9% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7%
Projected
Notes
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 1 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Revenues
Rate Revenues
Residential
Single Family & CondoSingle Family & Condo $56,578,505 $57,144,290 $57,715,733 $58,292,890 $58,875,819 $59,464,577 $60,059,223 $60,659,815 $61,266,414 $61,879,078 As Customer Growth Multi-Family 5,441,560 5,495,976 5,550,936 5,606,445 5,662,509 5,719,134 5,776,326 5,834,089 5,892,430 5,951,354 As Customer Growth Apartments 16,384,198 16,548,040 16,713,520 16,880,656 17,049,462 17,219,957 17,392,156 17,566,078 17,741,739 17,919,156 As Customer Growth Commercial/Institutional
Low Strength $368,738 $372,425 $376,149 $379,911 $383,710 $387,547 $391,423 $395,337 $399,290 $403,283 As Customer Growth Medium Strength Medium Strength 4,759,241 4,806,833 4,854,902 4,903,451 4,952,485 5,002,010 5,052,030 5,102,551 5,153,576 5,205,112 As Customer Growth High Strength 1,876,559 1,895,325 1,914,278 1,933,421 1,952,755 1,972,283 1,992,005 2,011,925 2,032,045 2,052,365 As Customer Growth Schools 923,703 932,940 942,270 951,692 961,209 970,821 980,529 990,335 1,000,238 1,010,240 As Customer Growth Industrial 4,414,659 4,458,805 4,503,393 4,548,427 4,593,911 4,639,851 4,686,249 4,733,112 4,780,443 4,828,247 As Customer Growth ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Rate RevenuesTotal Rate Revenues $90,747,163 $91,654,635 $92,571,181 $93,496,893 $94,431,862 $95,376,180 $96,329,942 $97,293,241 $98,266,174 $99,248,836 Other Revenues
Fats, Oils, Grease Inspection Fats, Oils, Grease Inspection $44,091 $44,311 $44,533 $44,756 $44,979 $45,204 $45,430 $45,658 $45,886 $46,115 As Misc / Other Revenues Interest Income Interest Income 790,829 843,714 739,207 710,888 458,803 146,237 170,419 232,248 335,846 482,553 Calculated on Reserves Service Penalties Service Penalties 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 As Flat Lien Admin Fees Lien Admin Fees 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 As Flat Pre-Treatment Violations Pre-Treatment Violations 60,291 60,291 60,291 60,291 60,291 60,291 60,291 60,291 60,291 60,291 As Flat Returned Check FeesReturned Check Fees 1,000 1,005 1,010 1,015 1,020 1,025 1,030 1,036 1,041 1,046 As Misc / Other Revenues Other Revenue Other Revenue 45,000 45,225 45,451 45,678 45,907 46,136 46,367 46,599 46,832 47,066 As Misc / Other Revenues Program Revenue Program Revenue 2,500 2,513 2,525 2,538 2,550 2,563 2,576 2,589 2,602 2,615 As Misc / Other Revenues Refunds and Reimbursements Refunds and Reimbursements 30,000 30,150 30,301 30,452 30,605 30,758 30,911 31,066 31,221 31,377 As Misc / Other Revenues Mapping Fee 6,410 6,442 6,474 6,507 6,539 6,572 6,605 6,638 6,671 6,704 As Misc / Other Revenues Permit Center Operations Permit Center Operations 46,511 46,744 46,977 47,212 47,448 47,685 47,924 48,164 48,404 48,646 As Misc / Other Revenues Plan Check Fees Plan Check Fees 10,000 10,050 10,100 10,151 10,202 10,253 10,304 10,355 10,407 10,459 As Misc / Other Revenues Wastewater HaulerWastewater Hauler 0 0 0 0 0 0 0 0 0 0 As Misc / Other Revenues ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Other Revenues Total Other Revenues 2,615,296 $2,669,108 $2,565,533 $2,538,151 $2,287,009 $1,975,389 $2,000,521 $2,063,306 $2,167,865 $2,315,536 Total Revenues $93,362,459 $94,323,743 $95,136,714 $96,035,044 $96,718,870 $97,351,569 $98,330,463 $99,356,548 $100,434,038 $101,564,372 Projected
Notes
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 2 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Expenses
Utility Billing
Employee Services
Utility BillingSalaries - Regular Salaries - Regular $970,566 $1,050,049 $1,081,550 $1,113,997 $1,147,417 $1,181,839 $1,217,295 $1,253,813 $1,291,428 $1,330,171 As Labor Utility BillingSalaries - Part Time/Temp Salaries - Part Time/Temp 57,240 21,036 21,667 22,317 22,987 23,676 24,386 25,118 25,872 26,648 As Labor Utility BillingRegular Overtime Regular Overtime 20,828 21,036 21,667 22,317 22,987 23,676 24,386 25,118 25,872 26,648 As Labor Utility BillingEmployee Separation Pay Employee Separation Pay 11,781 12,978 13,367 13,768 14,181 14,607 15,045 15,496 15,961 16,440 As Labor Utility BillingAdditional Pay Additional Pay 2,170 0 0 0 0 0 0 0 0 0 As Labor Utility BillingRetirement Retirement 249,409 304,138 325,428 344,953 365,651 387,590 410,845 435,496 461,625 489,323 As Benefits - Retirement Utility BillingMedicareMedicare 14,891 16,359 16,850 17,355 17,876 18,412 18,965 19,534 20,120 20,723 As Benefits - Medical Utility BillingHealth/Dental/Vision Health/Dental/Vision 214,356 266,112 274,095 282,318 290,788 299,511 308,497 317,752 327,284 337,103 As Benefits - Medical Utility BillingL/T Disability Insurance L/T Disability Insurance 4,077 6,618 6,817 7,021 7,232 7,449 7,672 7,902 8,139 8,383 As Benefits - Other Utility BillingLife Insurance Life Insurance 971 968 997 1,027 1,058 1,089 1,122 1,156 1,191 1,226 As Benefits - Other Utility BillingWorkers Compensation Workers Compensation 28,976 33,979 34,998 36,048 37,130 38,244 39,391 40,573 41,790 43,044 As Benefits - Other Utility BillingUnemployment Insurance Unemployment Insurance 1,519 1,166 1,201 1,237 1,274 1,312 1,352 1,392 1,434 1,477 As Benefits - Other Utility BillingCell Phone Allowance Cell Phone Allowance 1,203 1,407 1,449 1,493 1,537 1,584 1,631 1,680 1,730 1,782 As Miscellaneous Utility BillingRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Utility BillingVacation Sell Back Vacation Sell Back 0 2,141 2,205 2,271 2,340 2,410 2,482 2,556 2,633 2,712 As Labor ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Employee Services Total Employee Services $1,577,987 $1,737,987 $1,802,292 $1,866,124 $1,932,456 $2,001,399 $2,073,069 $2,147,586 $2,225,079 $2,305,680 Other Services
Utility BillingContractual Employees Contractual Employees $25,000 $25,250 $26,134 $27,048 $27,860 $28,696 $29,557 $30,443 $31,357 $32,297 As Professional Services Utility BillingMaint. & Repair Services Maint. & Repair Services 6,104 6,165 6,381 6,604 6,802 7,006 7,216 7,433 7,656 7,886 As Materials & Supplies Utility BillingDuplication/Copy Costs Duplication/Copy Costs 12,600 12,726 13,171 13,632 14,041 14,463 14,897 15,343 15,804 16,278 As Materials & Supplies Utility BillingInsurance Premiums Insurance Premiums 93,511 115,394 125,779 137,100 149,439 162,888 177,548 193,527 210,945 229,930 As Insurance Utility BillingAutomotive Equip Rental Automotive Equip Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Utility BillingComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 108,027 110,187 114,594 119,178 123,945 128,903 132,770 136,753 140,856 145,082 As Equipment Utility BillingTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Utility BillingPublicity & Advertising Publicity & Advertising 2,375 2,398 2,482 2,569 2,646 2,725 2,807 2,891 2,978 3,067 As Materials & Supplies Utility BillingPrinting & Mapping Printing & Mapping 74,145 86,577 89,607 92,743 95,526 98,392 101,343 104,384 107,515 110,741 As Materials & Supplies Utility BillingPostage/Mailing Services Postage/Mailing Services 464,265 470,321 486,782 503,820 518,934 534,502 550,537 567,053 584,065 601,587 As Materials & Supplies Utility BillingProcessing Fees Processing Fees 85,448 88,327 91,418 94,618 97,457 100,380 103,392 106,493 109,688 112,979 As Materials & Supplies Utility BillingComputer/Programming Svcs Computer/Programming Svcs 1,650 3,333 3,450 3,570 3,678 3,788 3,901 4,019 4,139 4,263 As Professional Services Utility BillingOther Services Other Services 700,000 707,000 728,210 750,056 772,558 795,735 819,607 844,195 869,521 895,606 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Other Services Total Other Services $1,573,125 $1,627,678 $1,688,009 $1,750,939 $1,812,885 $1,877,478 $1,943,575 $2,012,535 $2,084,523 $2,159,716 Materials & Supplies
Utility BillingMaterials and Supplies Materials and Supplies $20,000 $20,200 $20,907 $21,639 $22,288 $22,957 $23,645 $24,355 $25,085 $25,838 As Materials & Supplies Utility BillingComputer Software Computer Software 1,500 1,611 1,675 1,742 1,812 1,885 1,941 1,999 2,059 2,121 As Equipment Utility BillingFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 21,941 30,705 31,933 33,210 34,539 35,920 37,178 38,479 39,826 41,219 As Utilities ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Materials & Supplies Total Materials & Supplies $43,441 $52,516 $54,516 $56,592 $58,639 $60,762 $62,764 $64,833 $66,970 $69,178 Other Expenses
Utility BillingTrainingTraining $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Utility BillingMeetings & Travel Meetings & Travel 1,500 1,515 1,568 1,623 1,672 1,722 1,773 1,827 1,881 1,938 As Materials & Supplies Utility BillingMemberships Memberships 600 606 627 649 669 689 709 731 753 775 As Materials & Supplies Utility BillingCar Mileage Reimbursement Car Mileage Reimbursement 600 606 627 649 669 689 709 731 753 775 As Materials & Supplies Utility BillingCollection Costs Collection Costs 45,579 46,035 47,416 48,839 50,304 51,813 53,367 54,968 56,617 58,316 As Miscellaneous Utility BillingTelephone Telephone 900 909 945 983 1,023 1,063 1,101 1,139 1,179 1,220 As Utilities Utility BillingTraining Services Training Services 9,000 9,090 9,363 9,644 9,933 10,231 10,538 10,854 11,180 11,515 As Labor Utility BillingSettlement Payments Settlement Payments 40,255 81,388 83,830 86,345 88,935 91,603 94,351 97,182 100,097 103,100 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Other Expenses Total Other Expenses $98,434 $140,149 $144,376 $148,731 $153,203 $157,809 $162,549 $167,431 $172,459 $177,639 Total Utility Billing Expenses $3,292,987 $3,558,330 $3,689,193 $3,822,386 $3,957,183 $4,097,448 $4,241,957 $4,392,385 $4,549,031 $4,712,213
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 3 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Administration
Employee Services
AdministrationSalaries - Regular Salaries - Regular $798,465 $793,842 $817,657 $842,187 $867,453 $893,476 $920,280 $947,889 $976,326 $1,005,615 As Labor AdministrationSalaries - Part Time/Temp Salaries - Part Time/Temp 6,300 0 0 0 0 0 0 0 0 0 As Labor AdministrationRegular Overtime Regular Overtime 12,600 31,500 32,445 33,418 34,421 35,454 36,517 37,613 38,741 39,903 As Labor AdministrationEmployee Separation Pay Employee Separation Pay 9,694 9,811 10,105 10,408 10,721 11,042 11,374 11,715 12,066 12,428 As Labor AdministrationAdditional Pay Additional Pay 767 4,289 4,418 4,550 4,687 4,827 4,972 5,121 5,275 5,433 As Labor AdministrationRetirement Retirement 204,923 227,067 242,962 257,539 272,992 289,371 306,734 325,138 344,646 365,325 As Benefits - Retirement AdministrationMedicare Medicare 11,064 12,227 12,594 12,972 13,361 13,762 14,174 14,600 15,038 15,489 As Benefits - Medical AdministrationHealth/Dental/Vision Health/Dental/Vision 119,811 137,592 141,720 145,971 150,350 154,861 159,507 164,292 169,221 174,297 As Benefits - Medical AdministrationL/T Disability Insurance L/T Disability Insurance 3,215 5,018 5,169 5,324 5,483 5,648 5,817 5,992 6,172 6,357 As Benefits - Other AdministrationLife Insurance Life Insurance 537 529 545 561 578 595 613 632 651 670 As Benefits - Other AdministrationWorkers Compensation Workers Compensation 21,489 24,161 24,886 25,632 26,401 27,193 28,009 28,849 29,715 30,606 As Benefits - Other AdministrationUnemployment Insurance Unemployment Insurance 1,160 861 887 913 941 969 998 1,028 1,059 1,091 As Benefits - Other AdministrationCell Phone Allowance Cell Phone Allowance 2,646 2,079 2,141 2,206 2,272 2,340 2,410 2,482 2,557 2,634 As Miscellaneous AdministrationRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Employee Services Total Employee Services $1,192,671 $1,248,976 $1,295,528 $1,341,683 $1,389,659 $1,439,539 $1,491,406 $1,545,350 $1,601,465 $1,659,848 Administration
Other Services
AdministrationTelephone Telephone $12,285 $12,663 $13,170 $13,696 $14,244 $14,814 $15,332 $15,869 $16,424 $16,999 As Utilities AdministrationComputer/Tech/Operation Support Computer/Tech/Operation Support 103,422 53,574 55,717 57,946 60,263 62,674 64,554 66,491 68,486 70,540 As Equipment AdministrationRadio Equipment Rental Radio Equipment Rental 1,596 1,649 1,715 1,784 1,855 1,929 1,987 2,047 2,108 2,171 As Equipment AdministrationOther Rentals Other Rentals 1,728,615 1,846,980 1,920,859 1,997,694 2,077,601 2,160,705 2,225,527 2,292,292 2,361,061 2,431,893 As Equipment AdministrationTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies AdministrationWaterWater 567 0 0 0 0 0 0 0 0 0 As Utilities AdministrationStorm Water Storm Water 0 0 0 0 0 0 0 0 0 0 As Utilities AdministrationMaint. & Repair Services Maint. & Repair Services 5,670 6,300 6,521 6,749 6,951 7,160 7,375 7,596 7,824 8,058 As Materials & Supplies AdministrationUniform/Laundry Services Uniform/Laundry Services 1,890 1,890 1,956 2,025 2,085 2,148 2,212 2,279 2,347 2,417 As Materials & Supplies AdministrationDuplication/Copy Costs Duplication/Copy Costs 1,890 630 652 675 695 716 737 760 782 806 As Materials & Supplies AdministrationInsurance Premiums Insurance Premiums 73,587 86,390 94,165 102,640 111,878 121,947 132,922 144,885 157,924 172,137 As Insurance AdministrationAutomotive Equip Rental Automotive Equip Rental 0 14,158 14,724 15,313 15,925 16,562 17,059 17,571 18,098 18,641 As Equipment AdministrationPublicity & Advertising Publicity & Advertising 630 945 978 1,012 1,043 1,074 1,106 1,139 1,174 1,209 As Materials & Supplies AdministrationPostage/Mailing Services Postage/Mailing Services 0 63 65 67 70 72 74 76 78 81 As Materials & Supplies AdministrationProcessing Fees Processing Fees 0 7,500 7,763 8,034 8,275 8,523 8,779 9,043 9,314 9,593 As Materials & Supplies AdministrationLegal Services Legal Services 0 0 0 0 0 0 0 0 0 0 As Labor AdministrationTraining Services Training Services 6,300 9,450 9,734 10,026 10,326 10,636 10,955 11,284 11,622 11,971 As Labor AdministrationProf & Special Services Prof & Special Services 88,200 87,255 89,873 92,569 95,346 98,206 101,152 104,187 107,313 110,532 As Labor AdministrationOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor AdministrationTesting and Analysis Services Testing and Analysis Services 315 315 324 334 344 355 365 376 387 399 As Labor AdministrationRecoverable Legal Expense Recoverable Legal Expense 9,450 31,500 32,445 33,418 34,421 35,454 36,517 37,613 38,741 39,903 As Labor Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Other Services Total Other Services $2,034,417 $2,161,262 $2,250,660 $2,343,981 $2,441,323 $2,542,974 $2,626,654 $2,713,506 $2,803,683 $2,897,352 Administration
Materials & Supplies
AdministrationMaterials and Supplies Materials and Supplies $12,600 $18,900 $19,562 $20,246 $20,854 $21,479 $22,124 $22,787 $23,471 $24,175 As Materials & Supplies AdministrationComputer Software Computer Software 12,600 0 0 0 0 0 0 0 0 0 As Materials & Supplies AdministrationFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 920 0 0 0 0 0 0 0 0 0 As Utilities AdministrationNon-Capital Assets Non-Capital Assets 25,200 15,750 16,301 16,872 17,378 17,899 18,436 18,989 19,559 20,146 As Materials & Supplies Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Materials & Supplies Total Materials & Supplies $51,320 $34,650 $35,863 $37,118 $38,231 $39,378 $40,560 $41,777 $43,030 $44,321 Administration
Other Expenses
AdministrationTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor AdministrationMeetings & Travel Meetings & Travel 630 630 652 675 695 716 737 760 782 806 As Materials & Supplies AdministrationMemberships Memberships 756 756 782 810 834 859 885 911 939 967 As Materials & Supplies AdministrationIndirect Cost Allocation Indirect Cost Allocation 1,413,232 1,413,232 1,455,629 1,499,298 1,544,277 1,590,605 1,638,323 1,687,473 1,738,097 1,790,240 As Miscellaneous AdministrationCar Mileage Reimbursement Car Mileage Reimbursement 1,260 630 652 675 695 716 737 760 782 806 As Materials & Supplies AdministrationSettlement Payments Settlement Payments 29,921 28,068 28,910 29,777 30,671 31,591 32,539 33,515 34,520 35,556 As Miscellaneous AdministrationVehicle Acquisition Vehicle Acquisition 31,500 31,500 32,760 34,070 35,433 36,851 37,956 39,095 40,268 41,476 As Equipment AdministrationEquipment Acquisition Equipment Acquisition 6,300 0 0 0 0 0 0 0 0 0 As Equipment Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Other Expenses Total Other Expenses $1,483,599 $1,474,816 $1,519,386 $1,565,305 $1,612,605 $1,661,338 $1,711,178 $1,762,513 $1,815,388 $1,869,850 Administration
Total Administration $4,762,007 $4,919,704 $5,101,436 $5,288,087 $5,481,819 $5,683,229 $5,869,798 $6,063,146 $6,263,567 $6,471,371
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 4 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Engineering Services
Employee Services
Engineering ServicesSalaries - Regular Salaries - Regular $1,174,474 $1,183,613 $1,219,121 $1,255,695 $1,293,366 $1,332,167 $1,372,132 $1,413,296 $1,455,695 $1,499,366 As Labor Engineering ServicesEmployee Separation Pay Employee Separation Pay 14,115 14,628 15,067 15,519 15,984 16,464 16,958 17,467 17,991 18,530 As Labor Engineering ServicesRetirement Retirement 302,663 338,273 361,952 383,669 406,689 431,091 456,956 484,374 513,436 544,242 As Benefits - Retirement Engineering ServicesMedicare Medicare 16,907 17,519 18,045 18,586 19,143 19,718 20,309 20,919 21,546 22,193 As Benefits - Medical Engineering ServicesHealth/Dental/Vision Health/Dental/Vision 147,386 171,360 176,501 181,796 187,250 192,867 198,653 204,613 210,751 217,074 As Benefits - Medical Engineering ServicesL/T Disability Insurance L/T Disability Insurance 4,933 7,455 7,679 7,909 8,146 8,391 8,642 8,902 9,169 9,444 As Benefits - Other Engineering ServicesLife Insurance Life Insurance 722 680 700 721 743 765 788 812 836 861 As Benefits - Other Engineering ServicesWorkers Compensation Workers Compensation 39,861 27,177 27,992 28,832 29,697 30,588 31,506 32,451 33,424 34,427 As Benefits - Other Engineering ServicesCell Phone Allowance Cell Phone Allowance 3,045 1,680 1,730 1,782 1,836 1,891 1,948 2,006 2,066 2,128 As Miscellaneous Engineering ServicesRegular Overtime Regular Overtime 4,486 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 As Labor Engineering ServicesAdditional Pay Additional Pay 5,959 5,390 5,552 5,718 5,890 6,066 6,248 6,436 6,629 6,828 As Labor Engineering ServicesUnemployment Insurance Unemployment Insurance 1,663 1,214 1,250 1,288 1,327 1,366 1,407 1,450 1,493 1,538 As Benefits - Other Engineering ServicesRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Engineering ServicesVacation Sell Back Vacation Sell Back 0 2,414 2,486 2,561 2,638 2,717 2,798 2,882 2,969 3,058 As Labor ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Employee Services Total Employee Services $1,716,214 $1,774,903 $1,841,681 $1,907,790 $1,976,534 $2,048,030 $2,122,404 $2,199,785 $2,280,310 $2,364,122 Engineering Services
Other Services
Engineering ServicesTelephone Telephone $699 $2,800 $2,912 $3,028 $3,150 $3,276 $3,390 $3,509 $3,632 $3,759 As Utilities Engineering ServicesMaintenance & Repair Services Maintenance & Repair Services 2,800 0 0 0 0 0 0 0 0 0 As Labor Engineering ServicesDuplication/Copy Costs Duplication/Copy Costs 1,400 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 As Miscellaneous Engineering ServicesInsurance Premiums Insurance Premiums 106,849 124,341 135,532 147,730 161,025 175,517 191,314 208,532 227,300 247,757 As Insurance Engineering ServicesAutomotive Equipment Rental Automotive Equipment Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Engineering ServicesComputer/Tech/Operation Support Computer/Tech/Operation Support 136,641 120,658 125,484 130,504 135,724 141,153 145,387 149,749 154,241 158,869 As Equipment Engineering ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Engineering ServicesPublicity & Advertising Publicity & Advertising 3,500 2,100 2,174 2,250 2,317 2,387 2,458 2,532 2,608 2,686 As Materials & Supplies Engineering ServicesPrinting & Mapping Printing & Mapping 35,000 38,500 39,848 41,242 42,479 43,754 45,066 46,418 47,811 49,245 As Materials & Supplies Engineering ServicesPostage/Mailing Services Postage/Mailing Services 350 350 361 371 382 394 406 418 430 443 As Labor Engineering ServicesProcessing Fees Processing Fees 753 770 797 825 850 875 901 928 956 985 As Materials & Supplies Engineering ServicesUniform/Laundry Services Uniform/Laundry Services 474 560 580 600 618 636 656 675 695 716 As Materials & Supplies Engineering ServicesOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Engineering ServicesTesting and Analysis Services Testing and Analysis Services 560 0 0 0 0 0 0 0 0 0 As Labor Engineering ServicesProfessional and Special Services Professional and Special Services 35,000 280,000 288,400 297,052 305,964 315,142 324,597 334,335 344,365 354,696 As Labor Engineering ServicesRadio Equipment Rental Radio Equipment Rental 1,397 960 994 1,028 1,059 1,091 1,124 1,157 1,192 1,228 As Materials & Supplies Engineering Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Other Services Total Other Services $325,423 $572,439 $598,522 $626,115 $655,098 $685,801 $716,922 $749,926 $784,953 $822,158 Engineering Services
Materials & Supplies
Engineering ServicesMaterials & Supplies Materials & Supplies $7,000 $10,500 $10,868 $11,248 $11,585 $11,933 $12,291 $12,660 $13,039 $13,431 As Materials & Supplies Engineering ServicesComputer Software Computer Software 35,490 14,000 14,560 15,142 15,748 16,378 16,869 17,375 17,897 18,434 As Equipment Engineering ServicesSubscription - Periodical Subscription - Periodical 35 350 362 375 386 398 410 422 435 448 As Materials & Supplies Engineering ServicesFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 2,925 832 866 900 936 974 1,008 1,043 1,079 1,117 As Utilities Engineering ServicesLibrary Materials Library Materials 8,652 3,500 3,623 3,749 3,862 3,978 4,097 4,220 4,346 4,477 As Materials & Supplies Engineering ServicesNon-Capital Assets Non-Capital Assets 31,500 10,500 10,868 11,248 11,585 11,933 12,291 12,660 13,039 13,431 As Materials & Supplies Engineering Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Materials & Supplies Total Materials & Supplies $85,602 $39,682 $41,145 $42,663 $44,103 $45,593 $46,965 $48,379 $49,836 $51,336 Engineering Services
Other Expenses
Engineering ServicesTraining Training $7,350 $7,000 $7,210 $7,426 $7,649 $7,879 $8,115 $8,358 $8,609 $8,867 As Labor Engineering ServicesMeetings & Travel Meetings & Travel 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Engineering ServicesMemberships Memberships 1,960 1,750 1,811 1,875 1,931 1,989 2,048 2,110 2,173 2,238 As Materials & Supplies Engineering ServicesCar Mileage Reimbursement Car Mileage Reimbursement 70 70 72 75 77 80 82 84 87 90 As Materials & Supplies Engineering ServicesVehicle Acquisition Vehicle Acquisition 35,000 61,250 63,700 66,248 68,898 71,654 73,803 76,018 78,298 80,647 As Equipment Engineering ServicesSettlement Payments Settlement Payments 43,746 41,816 43,070 44,363 45,693 47,064 48,476 49,930 51,428 52,971 As Miscellaneous Engineering Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Other Expenses Total Other Expenses $88,126 $111,886 $115,864 $119,987 $124,249 $128,665 $132,525 $136,501 $140,596 $144,814 Engineering Services
Total Engineering Services $2,215,365 $2,498,910 $2,597,212 $2,696,554 $2,799,983 $2,908,089 $3,018,817 $3,134,591 $3,255,694 $3,382,430
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 5 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Treatment Operations
Employee Services
Treatment OperationsSalaries - Regular Salaries - Regular $2,493,076 $2,411,498 $2,483,843 $2,558,358 $2,635,109 $2,714,162 $2,795,587 $2,879,455 $2,965,838 $3,054,814 As Labor Treatment OperationsSalaries Part Time - Temp Salaries Part Time - Temp 48,000 48,000 49,440 50,923 52,451 54,024 55,645 57,315 59,034 60,805 As Labor Treatment OperationsRegular Overtime Regular Overtime 426,000 450,000 463,500 477,405 491,727 506,479 521,673 537,324 553,443 570,047 As Labor Treatment OperationsStand By Time (Call Back) Stand By Time (Call Back) 20,040 20,040 20,641 21,260 21,898 22,555 23,232 23,929 24,647 25,386 As Labor Treatment OperationsHoliday Pay Holiday Pay 90,000 93,000 95,790 98,664 101,624 104,672 107,812 111,047 114,378 117,810 As Labor Treatment OperationsEmployee Separation Pay Employee Separation Pay 27,724 29,804 30,698 31,619 32,568 33,545 34,551 35,588 36,655 37,755 As Labor Treatment OperationsAdditional Pay Additional Pay 5,941 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201 As Labor Treatment OperationsRetirement Retirement 641,359 716,498 766,653 812,652 861,411 913,096 967,882 1,025,954 1,087,512 1,152,762 As Benefits - Retirement Treatment OperationsDeferred Compensation Deferred Compensation 114,487 110,020 117,721 124,785 132,272 140,208 148,621 157,538 166,990 177,009 As Benefits - Retirement Treatment OperationsMedicare Medicare 44,047 44,041 45,362 46,723 48,125 49,569 51,056 52,587 54,165 55,790 As Benefits - Medical Treatment OperationsHealth/Dental/Vision Health/Dental/Vision 413,632 494,760 509,603 524,891 540,638 556,857 573,562 590,769 608,492 626,747 As Benefits - Medical Treatment OperationsL/T Disability Insurance L/T Disability Insurance 10,470 15,212 15,668 16,138 16,623 17,121 17,635 18,164 18,709 19,270 As Benefits - Other Treatment OperationsLife Insurance Life Insurance 2,182 2,110 2,173 2,238 2,306 2,375 2,446 2,519 2,595 2,673 As Benefits - Other Treatment OperationsWorkers Compensation Workers Compensation 231,486 159,989 164,789 169,732 174,824 180,069 185,471 191,035 196,766 202,669 As Benefits - Other Treatment OperationsUnemployment Insurance Unemployment Insurance 4,665 3,276 3,374 3,476 3,580 3,687 3,798 3,912 4,029 4,150 As Benefits - Other Treatment OperationsCell Phone Allowance Cell Phone Allowance 3,360 3,660 3,770 3,883 3,999 4,119 4,243 4,370 4,501 4,636 As Miscellaneous Treatment OperationsVacation Sell Back Vacation Sell Back 0 1,619 1,668 1,718 1,769 1,822 1,877 1,933 1,991 2,051 As Labor Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Employee Services Total Employee Services $4,576,469 $4,615,527 $4,787,054 $4,957,196 $5,134,035 $5,317,867 $5,509,002 $5,707,767 $5,914,505 $6,129,575 Treatment Operations
Other Services
Treatment OperationsElectricity Electricity $6,000,000 $6,245,288 $6,557,552 $6,885,430 $7,229,702 $7,591,187 $7,970,746 $8,369,283 $8,787,747 $9,227,135 As Electricity Treatment OperationsGas Gas 390,000 417,360 434,054 451,417 469,473 488,252 505,341 523,028 541,334 560,281 As Utilities Treatment OperationsWater Water 450,000 475,000 494,000 513,760 534,310 555,683 575,132 595,261 616,095 637,659 As Utilities Treatment OperationsTelephone Telephone 63,300 69,000 71,760 74,630 77,616 80,720 83,545 86,470 89,496 92,628 As Utilities Treatment OperationsStormwater Stormwater 31,000 31,000 32,240 33,530 34,871 36,266 37,535 38,849 40,208 41,616 As Utilities Treatment OperationsMaintenance & Repair Services Maintenance & Repair Services 1,158,500 2,000,000 2,070,000 2,142,450 2,206,724 2,272,925 2,341,113 2,411,346 2,483,687 2,558,197 As Materials & Supplies Treatment OperationsUniform/Laundry Services Uniform/Laundry Services 16,000 50,000 51,750 53,561 55,168 56,823 58,528 60,284 62,092 63,955 As Materials & Supplies Treatment OperationsDuplication/Copy Costs Duplication/Copy Costs 2,000 2,000 2,070 2,142 2,207 2,273 2,341 2,411 2,484 2,558 As Materials & Supplies Treatment OperationsInsurance Premiums Insurance Premiums 268,794 304,092 331,460 361,292 393,808 429,251 467,883 509,993 555,892 605,922 As Insurance Treatment OperationsAutomotive Equipment Rental Automotive Equipment Rental 45,690 47,480 49,379 51,354 53,408 55,544 57,211 58,927 60,695 62,516 As Equipment Treatment OperationsComputer/Tech/Operation Support Computer/Tech/Operation Support 100,602 108,357 112,149 116,075 119,557 123,144 126,838 130,643 134,562 138,599 As Materials & Supplies Treatment OperationsRadio Equipment Rental Radio Equipment Rental 25,935 26,624 27,556 28,520 29,376 30,257 31,165 32,100 33,063 34,055 As Materials & Supplies Treatment OperationsOther Rentals Other Rentals 6,600 100,000 103,500 107,123 110,336 113,646 117,056 120,567 124,184 127,910 As Materials & Supplies Treatment OperationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Treatment OperationsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment OperationsPublicity & Advertising Publicity & Advertising 3,500 1,200 1,242 1,285 1,324 1,364 1,405 1,447 1,490 1,535 As Materials & Supplies Treatment OperationsPostage/Mailing Services Postage/Mailing Services 500 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment OperationsProcessing Fees Processing Fees 667,000 708,000 732,780 758,427 781,180 804,616 828,754 853,617 879,225 905,602 As Materials & Supplies Treatment OperationsTesting & Analysis Services Testing & Analysis Services 2,500 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 As Labor Treatment OperationsTraining Services Training Services 53,500 51,000 52,530 54,106 55,729 57,401 59,123 60,897 62,724 64,605 As Labor Treatment OperationsProfessional & Special Services Professional & Special Services 4,382,163 6,741,450 6,943,694 7,152,004 7,366,564 7,587,561 7,815,188 8,049,644 8,291,133 8,539,867 As Labor Treatment OperationsOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Treatment OperationsLegal Services Legal Services 15,000 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Labor Treatment OperationsBuilding Repairs/Maint Building Repairs/Maint 2,000 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment OperationsSecurity & Alarm Services Security & Alarm Services 86,400 86,400 89,424 92,554 95,330 98,190 101,136 104,170 107,295 110,514 As Professional Services Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Other Services Total Other Services $13,770,984 $17,507,251 $18,201,433 $18,925,284 $19,663,676 $20,433,505 $21,229,894 $22,060,286 $22,926,298 $23,829,631 Treatment Operations
Materials & Supplies
Treatment OperationsMaterials & Supplies Materials & Supplies $250,000 $250,000 $258,750 $267,806 $275,840 $284,116 $292,639 $301,418 $310,461 $319,775 As Materials & Supplies Treatment OperationsComputer Software Computer Software 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment OperationsSubscription-Periodical Subscription-Periodical 500 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment OperationsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 41,380 33,588 34,764 35,981 37,060 38,172 39,317 40,497 41,712 42,963 As Materials & Supplies Treatment OperationsChemicals Chemicals 8,200,000 8,500,000 8,840,000 9,193,600 9,561,344 9,943,798 10,242,112 10,549,375 10,865,856 11,191,832 As Chemicals Treatment OperationsLibrary Materials Library Materials 5,000 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment OperationsNon-Capital Assets Non-Capital Assets 975,000 1,015,000 1,050,525 1,087,293 1,119,912 1,153,510 1,188,115 1,223,758 1,260,471 1,298,285 As Materials & Supplies Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Materials & Supplies Total Materials & Supplies $9,472,880 $9,800,088 $10,185,592 $10,586,287 $10,995,812 $11,421,300 $11,763,939 $12,116,857 $12,480,363 $12,854,773
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 6 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Other Expenses
Treatment OperationsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Treatment OperationsMeetings & Travel Meetings & Travel 1,180 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment OperationsMemberships Memberships 150,000 150,000 155,250 160,684 165,504 170,469 175,583 180,851 186,277 191,865 As Materials & Supplies Treatment OperationsTaxes Taxes 60,000 65,750 68,051 70,433 72,546 74,722 76,964 79,273 81,651 84,101 As Materials & Supplies Treatment OperationsRetirement Expense Retirement Expense 289,303 289,303 309,554 328,127 347,815 368,684 390,805 414,253 439,109 465,455 As Benefits - Retirement Treatment OperationsCar Mileage Reimbursement Car Mileage Reimbursement 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment OperationsSettlement Payments Settlement Payments 85,798 85,298 87,857 90,493 93,207 96,004 98,884 101,850 104,906 108,053 As Miscellaneous Treatment OperationsVehicle Acquisition Vehicle Acquisition 105,000 282,500 293,800 305,552 317,774 330,485 340,400 350,612 361,130 371,964 As Equipment Treatment OperationsEquipment Acquisition Equipment Acquisition 570,000 345,000 358,800 373,152 388,078 403,601 415,709 428,181 441,026 454,257 As Equipment Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Other Expenses Total Other Expenses $1,262,281 $1,219,851 $1,275,382 $1,330,583 $1,387,132 $1,446,239 $1,500,686 $1,557,431 $1,616,582 $1,678,252 Treatment Operations
Total Treatment Operations $29,082,614 $33,142,717 $34,449,461 $35,799,351 $37,180,655 $38,618,910 $40,003,521 $41,442,341 $42,937,747 $44,492,232 Treatment Operations
Sanitary Sewer Collections
Employee Services
Sanitary Sewer CollectionsSalaries - Regular Salaries - Regular $2,912,056 $2,999,402 $3,089,384 $3,182,066 $3,277,528 $3,375,853 $3,477,129 $3,581,443 $3,688,886 $3,799,553 As Labor Sanitary Sewer CollectionsSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 0 0 As Labor Sanitary Sewer CollectionsRegular Overtime Regular Overtime 150,000 150,000 154,500 159,135 163,909 168,826 173,891 179,108 184,481 190,016 As Labor Sanitary Sewer CollectionsStand By Time Stand By Time 40,000 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Labor Sanitary Sewer CollectionsHoliday Pay Holiday Pay 6,500 6,500 6,695 6,896 7,103 7,316 7,535 7,761 7,994 8,234 As Labor Sanitary Sewer CollectionsEmployee Separation Pay Employee Separation Pay 34,355 37,070 38,182 39,328 40,507 41,723 42,974 44,264 45,591 46,959 As Labor Sanitary Sewer CollectionsAdditional Pay Additional Pay 38,194 34,925 35,973 37,052 38,163 39,308 40,488 41,702 42,953 44,242 As Labor Sanitary Sewer CollectionsRetirement Retirement 748,013 858,100 918,167 973,257 1,031,652 1,093,552 1,159,165 1,228,715 1,302,437 1,380,584 As Benefits - Retirement Sanitary Sewer CollectionsDeferred Compensation Deferred Compensation 143,382 148,674 159,081 168,626 178,744 189,468 200,836 212,887 225,660 239,199 As Benefits - Retirement Sanitary Sewer CollectionsMedicare Medicare 44,831 46,864 48,270 49,718 51,210 52,746 54,328 55,958 57,637 59,366 As Benefits - Medical Sanitary Sewer CollectionsHealth/Dental/Vision Health/Dental/Vision 571,886 1,182,907 1,218,394 1,254,946 1,292,594 1,331,372 1,371,313 1,412,453 1,454,826 1,498,471 As Benefits - Medical Sanitary Sewer CollectionsL/T Disability Insurance L/T Disability Insurance 12,231 19,138 19,712 20,304 20,913 21,540 22,186 22,852 23,537 24,243 As Benefits - Other Sanitary Sewer CollectionsLife Insurance Life Insurance 3,007 2,987 3,077 3,169 3,264 3,362 3,463 3,567 3,674 3,784 As Benefits - Other Sanitary Sewer CollectionsWorkers Compensation Workers Compensation 285,343 210,825 217,150 223,664 230,374 237,285 244,404 251,736 259,288 267,067 As Benefits - Other Sanitary Sewer CollectionsUnemployment Insurance Unemployment Insurance 4,532 3,310 3,409 3,512 3,617 3,725 3,837 3,952 4,071 4,193 As Benefits - Other Sanitary Sewer CollectionsCell Phone Allowance Cell Phone Allowance 5,970 2,190 2,256 2,323 2,393 2,465 2,539 2,615 2,693 2,774 As Miscellaneous Sanitary Sewer CollectionsVacation Sell Back Vacation Sell Back 0 6,116 6,299 6,488 6,683 6,884 7,090 7,303 7,522 7,748 As Labor Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Employee Services Total Employee Services $5,000,300 $5,749,008 $5,961,749 $6,172,919 $6,392,363 $6,620,446 $6,857,550 $7,104,076 $7,360,447 $7,627,103 Sanitary Sewer Collections
Other Services
Sanitary Sewer CollectionsTelephone Telephone $8,000 $8,000 $8,320 $8,653 $8,999 $9,359 $9,686 $10,025 $10,376 $10,740 As Utilities Sanitary Sewer CollectionsMaintenance & Repair Services Maintenance & Repair Services 2,815,000 2,528,000 2,603,840 2,681,955 2,762,414 2,845,286 2,930,645 3,018,564 3,109,121 3,202,395 As Labor Sanitary Sewer CollectionsUniform/Laundry Services Uniform/Laundry Services 22,000 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 As Labor Sanitary Sewer CollectionsDuplication/Copy Costs Duplication/Copy Costs 2,500 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Miscellaneous Sanitary Sewer CollectionsInsurance Premiums Insurance Premiums 281,180 330,821 360,595 393,048 428,423 466,981 509,009 554,820 604,754 659,182 As Insurance Sanitary Sewer CollectionsAutomotive Equipment Rental Automotive Equipment Rental 305,670 443,366 461,101 479,545 498,726 518,675 534,236 550,263 566,771 583,774 As Equipment Sanitary Sewer CollectionsComputer/Tech/Operation Support Computer/Tech/Operation Support 157,534 165,931 172,568 179,471 186,650 194,116 199,939 205,937 212,116 218,479 As Equipment Sanitary Sewer CollectionsRadio Equipment Rental Radio Equipment Rental 53,845 55,261 57,471 59,770 62,161 64,648 66,587 68,585 70,642 72,761 As Equipment Sanitary Sewer CollectionsOther Rentals Other Rentals 35,000 35,000 36,400 37,856 39,370 40,945 42,173 43,439 44,742 46,084 As Equipment Sanitary Sewer CollectionsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Sewer CollectionsPublicity & Advertising Publicity & Advertising 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Miscellaneous Sanitary Sewer CollectionsPostage/Mailing Services Postage/Mailing Services 6,000 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 As Labor Sanitary Sewer CollectionsProcessing Fees Processing Fees 98,000 118,000 121,540 125,186 128,942 132,810 136,794 140,898 145,125 149,479 As Miscellaneous Sanitary Sewer CollectionsTesting & Analysis Services Testing & Analysis Services 1,500 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 As Labor Sanitary Sewer CollectionsTraining Services Training Services 40,000 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Labor Sanitary Sewer CollectionsProfessional & Special Services Professional & Special Services 247,163 535,000 551,050 567,582 584,609 602,147 620,212 638,818 657,983 677,722 As Labor Sanitary Sewer CollectionsOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Sanitary Sewer CollectionsElectricity Electricity 1,000 1,000 1,050 1,103 1,158 1,216 1,276 1,340 1,407 1,477 As Electricity Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Other Services Total Other Services $4,075,392 $4,314,879 $4,471,270 $4,634,424 $4,804,714 $4,982,543 $5,160,109 $5,345,527 $5,539,259 $5,741,802
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 7 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Materials & Supplies
Sanitary Sewer CollectionsMaterials & Supplies Materials & Supplies $400,000 $625,000 $646,875 $669,516 $689,601 $710,289 $731,598 $753,546 $776,152 $799,437 As Materials & Supplies Sanitary Sewer CollectionsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 270,001 185,621 192,118 198,842 204,807 210,951 217,280 223,798 230,512 237,428 As Materials & Supplies Sanitary Sewer CollectionsChemicals Chemicals 1,500,000 1,500,000 1,560,000 1,622,400 1,687,296 1,754,788 1,807,431 1,861,654 1,917,504 1,975,029 As Chemicals Sanitary Sewer CollectionsComputer Software Computer Software 7,000 7,000 7,245 7,499 7,724 7,955 8,194 8,440 8,693 8,954 As Materials & Supplies Sanitary Sewer CollectionsNon-Capital Assets Non-Capital Assets 150,000 250,000 258,750 267,806 275,840 284,116 292,639 301,418 310,461 319,775 As Materials & Supplies Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Materials & Supplies Total Materials & Supplies $2,327,001 $2,567,621 $2,664,988 $2,766,062 $2,865,268 $2,968,099 $3,057,142 $3,148,856 $3,243,322 $3,340,622 Sanitary Sewer Collections
Other Expenses
Sanitary Sewer CollectionsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Sanitary Sewer CollectionsMeetings & Travel Meetings & Travel 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Miscellaneous Sanitary Sewer CollectionsMemberships Memberships 30,000 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 As Miscellaneous Sanitary Sewer CollectionsRetirement Expense Retirement Expense 289,303 289,303 309,554 328,127 347,815 368,684 390,805 414,253 439,109 465,455 As Benefits - Retirement Sanitary Sewer CollectionsVehicle Acquisition Vehicle Acquisition 2,090,000 1,400,000 1,456,000 1,514,240 1,574,810 1,637,802 1,686,936 1,737,544 1,789,670 1,843,361 As Equipment Sanitary Sewer CollectionsEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Sewer CollectionsSettlement Payments Settlement Payments 106,135 105,845 109,020 112,291 115,660 119,129 122,703 126,384 130,176 134,081 As Miscellaneous Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Other Expenses Total Other Expenses $2,516,438 $1,821,148 $1,901,355 $1,982,242 $2,066,695 $2,154,879 $2,230,586 $2,309,227 $2,390,932 $2,475,833 Sanitary Sewer Collections
Total Sanitary Sewer Collections $13,919,131 $14,452,656 $14,999,362 $15,555,647 $16,129,041 $16,725,967 $17,305,387 $17,907,687 $18,533,960 $19,185,360 Sanitary Sewer Collections
Laboratory
Employee Services
LaboratorySalaries - Regular Salaries - Regular $516,156 $520,429 $536,042 $552,123 $568,687 $585,747 $603,320 $621,419 $640,062 $659,264 As Labor LaboratorySalaries Part Time - Temp Salaries Part Time - Temp 40,500 40,500 41,715 42,966 44,255 45,583 46,951 48,359 49,810 51,304 As Labor LaboratoryRegular Overtime Regular Overtime 3,600 3,600 3,708 3,819 3,934 4,052 4,173 4,299 4,428 4,560 As Labor LaboratoryHoliday Pay Holiday Pay 3,450 3,450 3,554 3,660 3,770 3,883 3,999 4,119 4,243 4,370 As Labor LaboratoryAdditional Pay Additional Pay 900 900 927 955 983 1,013 1,043 1,075 1,107 1,140 As Labor LaboratoryRetirement Retirement 132,698 149,300 159,751 169,336 179,496 190,266 201,682 213,783 226,610 240,206 As Benefits - Retirement LaboratoryDeferred Compensation Deferred Compensation 25,975 21,013 22,484 23,833 25,263 26,779 28,385 30,089 31,894 33,807 As Benefits - Retirement LaboratoryMedicareMedicare 8,042 8,242 8,489 8,744 9,006 9,276 9,555 9,841 10,137 10,441 As Benefits - Medical LaboratoryHealth/Dental/Vision Health/Dental/Vision 90,673 112,140 115,504 118,969 122,538 126,215 130,001 133,901 137,918 142,056 As Benefits - Medical LaboratoryL/T Disability Insurance L/T Disability Insurance 2,168 3,278 3,376 3,478 3,582 3,689 3,800 3,914 4,032 4,152 As Benefits - Other LaboratoryLife Insurance Life Insurance 474 475 489 504 519 535 551 567 584 602 As Benefits - Other LaboratoryWorkers Compensation Workers Compensation 17,030 12,785 13,169 13,564 13,971 14,390 14,821 15,266 15,724 16,196 As Benefits - Other LaboratoryUnemployment Insurance Unemployment Insurance 820 589 607 625 644 663 683 703 724 746 As Benefits - Other LaboratoryCell Phone Allowance Cell Phone Allowance 1,215 540 556 573 590 608 626 645 664 684 As Miscellaneous LaboratoryRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement LaboratoryEmployee Separation Pay Employee Separation Pay 4,960 6,432 6,625 6,824 7,028 7,239 7,456 7,680 7,911 8,148 As Labor LaboratoryVacation Sell Back Vacation Sell Back 0 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 As Labor ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Employee Services Total Employee Services $848,661 $884,734 $918,089 $951,098 $985,426 $1,021,132 $1,058,277 $1,096,927 $1,137,151 $1,179,021 Other Services
LaboratoryTelephoneTelephone $3,150 $1,875 $1,950 $2,028 $2,109 $2,193 $2,270 $2,350 $2,432 $2,517 As Utilities LaboratoryMaintenance & Repair Services Maintenance & Repair Services 75,938 63,000 64,890 66,837 68,842 70,907 73,034 75,225 77,482 79,807 As Labor LaboratoryUniform/Laundry Services Uniform/Laundry Services 3,750 6,375 6,566 6,763 6,966 7,175 7,390 7,612 7,840 8,076 As Labor LaboratoryDuplication/Copy Costs Duplication/Copy Costs 375 375 388 402 414 426 439 452 466 480 As Materials & Supplies LaboratoryInsurance Premiums Insurance Premiums 50,270 58,031 63,254 68,947 75,152 81,915 89,288 97,324 106,083 115,630 As Insurance LaboratoryAutomotive Equipment Rental Automotive Equipment Rental 0 15,997 16,637 17,302 17,994 18,714 19,276 19,854 20,450 21,063 As Equipment LaboratoryComputer/Tech/Operation Support Computer/Tech/Operation Support 32,716 39,293 40,865 42,499 44,199 45,967 47,346 48,767 50,230 51,737 As Equipment LaboratoryRadio Equipment Rental Radio Equipment Rental 499 1,543 1,605 1,669 1,736 1,805 1,859 1,915 1,972 2,032 As Equipment LaboratoryTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment LaboratoryPublicity & Advertising Publicity & Advertising 1,200 1,200 1,236 1,273 1,311 1,351 1,391 1,433 1,476 1,520 As Miscellaneous LaboratoryPostage/Mailing Services Postage/Mailing Services 225 225 232 239 246 253 261 269 277 285 As Miscellaneous LaboratoryProcessing Fees Processing Fees 46,500 42,375 43,646 44,956 46,304 47,693 49,124 50,598 52,116 53,679 As Miscellaneous LaboratoryTesting & Analysis Services Testing & Analysis Services 750 750 773 796 820 844 869 896 922 950 As Labor LaboratoryTraining Services Training Services 22,238 11,250 11,588 11,935 12,293 12,662 13,042 13,433 13,836 14,251 As Labor LaboratoryProfessional & Special Services Professional & Special Services 48,863 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 As Labor LaboratoryOther Services Othr Services 0 0 0 0 0 0 0 0 0 0 As Labor LaboratoryLaboratory Service Laboratory Service 142,050 104,625 107,764 110,997 114,327 117,756 121,289 124,928 128,676 132,536 As Labor LaboratoryBuilding Repairs/Maint Building Repairs/Maint 1,875 1,875 1,941 2,009 2,069 2,131 2,195 2,261 2,328 2,398 As Materials & Supplies ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Other Services Total Other Services $430,399 $378,789 $394,233 $410,477 $427,563 $445,560 $463,852 $483,137 $503,482 $524,964
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 8 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Materials & Supplies
LaboratoryMaterials & Supplies Materials & Supplies $139,875 $127,125 $131,574 $136,179 $140,265 $144,473 $148,807 $153,271 $157,869 $162,605 As Materials & Supplies LaboratoryComputer Software Computer Software 6,375 118,875 123,630 128,575 133,718 139,067 143,239 147,536 151,962 156,521 As Equipment LaboratoryFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 1,646 2,625 2,730 2,839 2,953 3,071 3,179 3,290 3,405 3,524 As Utilities LaboratoryChemicalsChemicals 75,000 75,000 78,000 81,120 84,365 87,739 90,372 93,083 95,875 98,751 As Chemicals LaboratoryLibrary Materials Library Materials 450 750 776 803 828 852 878 904 931 959 As Materials & Supplies LaboratoryNon-Capital Assets Non-Capital Assets 7,500 7,500 7,763 8,034 8,275 8,523 8,779 9,043 9,314 9,593 As Materials & Supplies ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Materials & Supplies Total Materials & Supplies $230,846 $331,875 $344,473 $357,552 $370,404 $383,726 $395,253 $407,127 $419,357 $431,955 Other Expenses
LaboratoryMemberships Memberships $2,513 $2,513 $2,588 $2,666 $2,746 $2,828 $2,913 $3,001 $3,091 $3,183 As Miscellaneous LaboratoryMeetings & Travel Meetings & Travel 1,613 1,500 1,553 1,607 1,655 1,705 1,756 1,809 1,863 1,919 As Materials & Supplies LaboratoryTraining Training 0 0 0 0 0 0 0 0 0 0 As Labor LaboratoryVehicle Acquisition Vehicle Acquisition 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies LaboratoryEquipment Acquisition Equipment Acquisition 358,500 18,750 19,500 20,280 21,091 21,935 22,593 23,271 23,969 24,688 As Equipment LaboratorySettlement Payments Settlement Payments 15,341 18,334 18,884 19,451 20,034 20,635 21,254 21,892 22,549 23,225 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Other Expenses Total Other Expenses $377,967 $41,097 $42,525 $44,003 $45,526 $47,103 $48,516 $49,972 $51,471 $53,015 Total Laboratory $1,887,873 $1,636,495 $1,699,320 $1,763,131 $1,828,920 $1,897,521 $1,965,899 $2,037,162 $2,111,461 $2,188,954 Other Support Services
Employee Services
Other Support ServicesSalaries - Regular Salaries - Regular $614,960 $707,156 $728,371 $750,222 $772,728 $795,910 $819,788 $844,381 $869,713 $895,804 As Labor Other Support ServicesSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 0 0 As Labor Other Support ServicesRegular Overtime Regular Overtime 0 0 0 0 0 0 0 0 0 0 As Labor Other Support ServicesEmployee Separation Pay Employee Separation Pay 7,563 8,740 9,002 9,272 9,550 9,837 10,132 10,436 10,749 11,072 As Labor Other Support ServicesAdditional Pay Additional Pay 214 0 0 0 0 0 0 0 0 0 As Labor Other Support ServicesRetirement Retirement 157,731 202,116 216,264 229,240 242,994 257,574 273,028 289,410 306,775 325,181 As Benefits - Retirement Other Support ServicesDeferred Compensation Deferred Compensation 9,737 10,280 11,000 11,660 12,359 13,101 13,887 14,720 15,603 16,539 As Benefits - Retirement Other Support ServicesMedicare Medicare 8,830 9,725 10,017 10,317 10,627 10,946 11,274 11,612 11,961 12,319 As Benefits - Medical Other Support ServicesHealth/Dental/Vision Health/Dental/Vision 84,357 118,742 122,304 125,973 129,753 133,645 137,655 141,784 146,038 150,419 As Benefits - Medical Other Support ServicesL/T Disability Insurance L/T Disability Insurance 2,583 4,478 4,612 4,751 4,893 5,040 5,191 5,347 5,507 5,673 As Benefits - Other Other Support ServicesLife Insurance Life Insurance 407 462 476 490 505 520 536 552 568 585 As Benefits - Other Other Support ServicesWorkers Compensation Workers Compensation 19,097 23,032 23,723 24,435 25,168 25,923 26,700 27,501 28,326 29,176 As Benefits - Other Other Support ServicesUnemployment Insurance Unemployment Insurance 864 713 734 756 779 802 827 851 877 903 As Benefits - Other Other Support ServicesCell Phone Allowance Cell Phone Allowance 3,897 4,431 4,564 4,701 4,842 4,987 5,137 5,291 5,450 5,613 As Miscellaneous Other Support ServicesVacation Sell Back Vacation Sell Back 0 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 1,827 As Labor Other Support Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Other Support ServicesTotal Employee Services Total Employee Services $910,240 $1,091,317 $1,132,552 $1,173,347 $1,215,774 $1,259,908 $1,305,826 $1,353,608 $1,403,340 $1,455,111 Other Support Services
Other Services
Other Support ServicesInsurance Premiums Insurance Premiums $55,433 $73,048 $79,622 $86,788 $94,599 $103,113 $112,393 $122,509 $133,535 $145,553 As Insurance Other Support ServicesProf & Special Services Prof & Special Services 30,410 128,895 132,762 136,745 140,847 145,072 149,425 153,907 158,525 163,280 As Labor Other Support Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Other Support ServicesTotal Other Services Total Other Services $85,843 $201,943 DRAFT
$212,384 $223,533 $235,446 $248,186 $261,818 $276,416 $292,059 $308,833
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 9 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Materials & Supplies
Other Support ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Other Support ServicesSettlement Payments Settlement Payments 23,327 24,984 25,734 26,506 27,301 28,120 28,963 29,832 30,727 31,649 As Miscellaneous Other Support Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Other Support ServicesTotal Materials & Supplies Total Materials & Supplies $23,327 $24,984 $25,734 $26,506 $27,301 $28,120 $28,963 $29,832 $30,727 $31,649 Other Support Services
Total Other Support Services $1,019,410 $1,318,244 $1,370,670 $1,423,385 $1,478,521 $1,536,213 $1,596,607 $1,659,856 $1,726,126 $1,795,593 Environmental Control
Employee Services
Environmental ControlSalaries - Regular Salaries - Regular $475,475 $475,417 $489,680 $504,370 $519,501 $535,086 $551,139 $567,673 $584,703 $602,244 As Labor Environmental ControlRegular Overtime Regular Overtime 29,892 29,892 30,789 31,712 32,664 33,644 34,653 35,693 36,763 37,866 As Labor Environmental ControlStand By Time Stand By Time 23,505 42,342 43,613 44,921 46,269 47,657 49,086 50,559 52,076 53,638 As Labor Environmental ControlEmployee Separation Pay Employee Separation Pay 5,714 5,876 6,052 6,234 6,421 6,613 6,812 7,016 7,227 7,444 As Labor Environmental ControlAdditional Pay Additional Pay 13,749 13,992 14,412 14,844 15,289 15,748 16,221 16,707 17,208 17,725 As Labor Environmental ControlRetirement Retirement 125,597 140,027 149,829 158,819 168,348 178,449 189,156 200,505 212,535 225,287 As Benefits - Retirement Environmental ControlDeferred Compensation Deferred Compensation 21,966 21,772 23,296 24,694 26,175 27,746 29,411 31,175 33,046 35,029 As Benefits - Retirement Environmental ControlMedicare Medicare 8,105 8,541 8,797 9,061 9,333 9,613 9,901 10,198 10,504 10,819 As Benefits - Medical Environmental ControlHealth/Dental/Vision Health/Dental/Vision 79,874 114,913 118,360 121,911 125,569 129,336 133,216 137,212 141,328 145,568 As Benefits - Medical Environmental ControlL/T Disability Insurance L/T Disability Insurance 1,997 3,033 3,124 3,218 3,314 3,414 3,516 3,622 3,730 3,842 As Benefits - Other Environmental ControlLife Insurance Life Insurance 413 412 424 437 450 464 478 492 507 522 As Benefits - Other Environmental ControlWorkers Compensation Workers Compensation 16,655 14,998 15,448 15,911 16,389 16,880 17,387 17,908 18,446 18,999 As Benefits - Other Environmental ControlUnemployment Insurance Unemployment Insurance 833 621 640 659 679 699 720 742 764 787 As Benefits - Other Environmental ControlCell Phone Allowance Cell Phone Allowance 978 690 711 732 754 777 800 824 849 874 As Miscellaneous Environmental ControlRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Environmental ControlHoliday Pay Holiday Pay 2,068 2,162 2,227 2,294 2,362 2,433 2,506 2,582 2,659 2,739 As Labor Environmental ControlPart-Time Salaries Part-Time Salaries 23,500 23,500 24,205 24,931 25,679 26,449 27,243 28,060 28,902 29,769 As Labor Environmental ControlPart-Time Salaries (2) Part-Time Salaries (2) 0 15,400 15,862 16,338 16,828 17,333 17,853 18,388 18,940 19,508 As Labor Environmental ControlVacation Sell Back Vacation Sell Back 0 969 998 1,028 1,059 1,091 1,123 1,157 1,192 1,228 As Labor Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Employee Services Total Employee Services $830,321 $914,557 $948,466 $982,114 $1,017,082 $1,053,431 $1,091,219 $1,130,513 $1,171,379 $1,213,888 Environmental Control
Other Services
Environmental ControlTelephone Telephone $9,400 $6,599 $6,863 $7,137 $7,423 $7,720 $7,990 $8,269 $8,559 $8,858 As Utilities Environmental ControlMaintenance & Repair Services Maintenance & Repair Services 13,818 9,118 9,437 9,767 10,060 10,362 10,673 10,993 11,323 11,663 As Materials & Supplies Environmental ControlUniform/Laundry Services Uniform/Laundry Services 3,384 3,948 4,086 4,229 4,356 4,487 4,621 4,760 4,903 5,050 As Materials & Supplies Environmental ControlDuplication/Copy Costs Duplication/Copy Costs 2,820 2,350 2,432 2,517 2,593 2,671 2,751 2,833 2,918 3,006 As Materials & Supplies Environmental ControlInsurance Premiums Insurance Premiums 49,387 58,687 63,969 69,726 76,001 82,841 90,297 98,424 107,282 116,938 As Insurance Environmental ControlAutomotive Equipment Rental Automotive Equipment Rental 0 20,821 21,654 22,521 23,421 24,358 25,089 25,842 26,617 27,415 As Equipment Environmental ControlComputer/Tech/Operation Support Computer/Tech/Operation Support 72,478 73,028 75,949 78,987 82,147 85,432 87,995 90,635 93,354 96,155 As Equipment Environmental ControlRadio Equipment Rental Radio Equipment Rental 3,662 2,223 2,312 2,404 2,501 2,601 2,679 2,759 2,842 2,927 As Equipment Environmental ControlPublicity & Advertising Publicity & Advertising 1,410 1,410 1,459 1,510 1,556 1,602 1,650 1,700 1,751 1,804 As Materials & Supplies Environmental ControlPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Environmental ControlPostage/Mailing Services Postage/Mailing Services 2,350 2,350 2,432 2,517 2,593 2,671 2,751 2,833 2,918 3,006 As Materials & Supplies Environmental ControlProcessing Fees Processing Fees 1,692 1,692 1,751 1,813 1,867 1,923 1,981 2,040 2,101 2,164 As Materials & Supplies Environmental ControlTesting & Analysis Services Testing & Analysis Services 705 705 726 748 770 793 817 842 867 893 As Labor Environmental ControlTraining Services Training Services 15,510 15,510 15,975 16,455 16,948 17,457 17,980 18,520 19,075 19,648 As Labor Environmental ControlProfessional & Special Services Professional & Special Services 200,947 177,397 182,719 188,200 193,846 199,662 205,652 211,821 218,176 224,721 As Labor Environmental ControlOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Environmental ControlLaboratory Services Laboratory Services 94,000 94,000 96,820 99,725 102,716 105,798 108,972 112,241 115,608 119,076 As Labor Environmental ControlSecurity & Alarm Services Security & Alarm Services 1,880 1,410 1,459 1,510 1,556 1,602 1,650 1,700 1,751 1,804 As Professional Services Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Other Services Total Other Services $473,443 $471,248 DRAFT
$490,045 $509,767 $530,354 $551,980 $573,549 $596,213 $620,046 $645,127
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 10 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Materials & Supplies
Environmental ControlMaterials & Supplies Materials & Supplies $28,200 $18,800 $19,458 $20,139 $20,743 $21,365 $22,006 $22,667 $23,347 $24,047 As Materials & Supplies Environmental ControlComputer Software Computer Software 94,000 36,660 37,943 39,271 40,449 41,663 42,913 44,200 45,526 46,892 As Materials & Supplies Environmental ControlFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 9,731 10,707 11,082 11,470 11,814 12,168 12,533 12,909 13,297 13,696 As Materials & Supplies Environmental ControlLibrary Materials Library Materials 1,880 1,880 1,946 2,014 2,074 2,137 2,201 2,267 2,335 2,405 As Materials & Supplies Environmental ControlNon-Capital Assets Non-Capital Assets 4,700 8,460 8,756 9,063 9,334 9,614 9,903 10,200 10,506 10,821 As Materials & Supplies Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Materials & Supplies Total Materials & Supplies $138,511 $76,507 $79,185 $81,956 $84,415 $86,948 $89,556 $92,243 $95,010 $97,860 Environmental Control
Other Expenses
Environmental ControlTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Environmental ControlMeetings & Travel Meetings & Travel 564 564 584 604 622 641 660 680 700 721 As Materials & Supplies Environmental ControlMemberships Memberships 1,692 2,021 2,092 2,165 2,230 2,297 2,366 2,437 2,510 2,585 As Materials & Supplies Environmental ControlRetirement Expense Retirement Expense 31,156 31,156 33,337 35,337 37,457 39,705 42,087 44,612 47,289 50,126 As Benefits - Retirement Environmental ControlVehicle Acquisition Vehicle Acquisition 38,000 82,156 85,442 88,860 92,414 96,111 98,994 101,964 105,023 108,174 As Equipment Environmental ControlSettlement Payments Settlement Payments 18,154 17,233 17,750 18,282 18,831 19,396 19,978 20,577 21,194 21,830 As Miscellaneous Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Other Expenses Total Other Expenses $89,566 $133,130 $139,205 $145,249 $151,555 $158,149 $164,085 $170,270 $176,717 $183,437 Environmental Control
Total Environmental Control $1,531,841 $1,595,443 $1,656,900 $1,719,086 $1,783,407 $1,850,508 $1,918,409 $1,989,239 $2,063,151 $2,140,312 Treatment Plant Maintenance
Employee Services
Treatment Plant MaintenanceSalaries - Regular Salaries - Regular $1,631,681 $1,640,625 $1,689,844 $1,740,539 $1,792,755 $1,846,538 $1,901,934 $1,958,992 $2,017,762 $2,078,295 As Labor Treatment Plant MaintenanceRegular Overtime Regular Overtime 50,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 As Labor Treatment Plant MaintenanceStand By Time (Call Back) Stand By Time (Call Back) 21,000 30,100 31,003 31,933 32,891 33,878 34,894 35,941 37,019 38,130 As Labor Treatment Plant MaintenanceHoliday Pay Holiday Pay 1,200 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 As Labor Treatment Plant MaintenanceEmployee Separation Pay Employee Separation Pay 19,609 20,276 20,884 21,511 22,156 22,821 23,505 24,211 24,937 25,685 As Labor Treatment Plant MaintenanceAdditional Pay Additional Pay 11,364 7,739 7,971 8,210 8,457 8,710 8,972 9,241 9,518 9,804 As Labor Treatment Plant MaintenanceRetirement Retirement 420,029 476,406 509,754 540,340 572,760 607,126 643,553 682,166 723,096 766,482 As Benefits - Retirement Treatment Plant MaintenanceDeferred Compensation Deferred Compensation 87,204 88,387 94,574 100,249 106,263 112,639 119,398 126,561 134,155 142,204 As Benefits - Retirement Treatment Plant MaintenanceMedicare Medicare 24,449 25,193 25,949 26,727 27,529 28,355 29,206 30,082 30,984 31,914 As Benefits - Medical Treatment Plant MaintenanceHealth/Dental/Vision Health/Dental/Vision 267,605 330,812 340,736 350,958 361,487 372,332 383,502 395,007 406,857 419,063 As Benefits - Medical Treatment Plant MaintenanceL-T Disability Insurance L-T Disability Insurance 6,852 10,431 10,744 11,066 11,398 11,740 12,092 12,455 12,829 13,214 As Benefits - Other Treatment Plant MaintenanceLife Insurance Life Insurance 1,417 1,418 1,461 1,504 1,549 1,596 1,644 1,693 1,744 1,796 As Benefits - Other Treatment Plant MaintenanceWorkers' Compensation Workers' Compensation 168,446 121,256 124,894 128,640 132,500 136,475 140,569 144,786 149,130 153,603 As Benefits - Other Treatment Plant MaintenanceUnemployment Insurance Unemployment Insurance 2,445 1,769 1,822 1,877 1,933 1,991 2,051 2,112 2,176 2,241 As Benefits - Other Treatment Plant MaintenanceCell Phone Allowance Cell Phone Allowance 6,390 3,300 3,399 3,501 3,606 3,714 3,826 3,940 4,059 4,180 As Miscellaneous Treatment Plant MaintenanceVacation Sell Back Vacation Sell Back 0 4,918 5,066 5,218 5,374 5,535 5,701 5,872 6,049 6,230 As Labor Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Employee Services Total Employee Services $2,719,691 $2,824,630 $2,931,961 $3,038,049 $3,148,408 $3,263,231 $3,382,721 $3,507,091 $3,636,566 $3,771,381 Treatment Plant Maintenance
Other Services
Treatment Plant MaintenanceTelephone Telephone $11,000 $11,000 $11,385 $11,783 $12,137 $12,501 $12,876 $13,262 $13,660 $14,070 As Materials & Supplies Treatment Plant MaintenanceMaint & Repair Services Maint & Repair Services 948,000 700,000 724,500 749,858 772,353 795,524 819,390 843,971 869,290 895,369 As Materials & Supplies Treatment Plant MaintenanceUniform/Laundry Services Uniform/Laundry Services 18,000 21,000 21,735 22,496 23,171 23,866 24,582 25,319 26,079 26,861 As Materials & Supplies Treatment Plant MaintenanceDuplicating/Copy Costs Duplicating/Copy Costs 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment Plant MaintenanceInsurance Premiums Insurance Premiums 153,929 178,117 194,148 211,621 230,667 251,427 274,055 298,720 325,605 354,909 As Insurance Treatment Plant MaintenanceAutomotive Equip Rental Automotive Equip Rental 193,623 165,254 171,864 178,738 185,888 193,324 199,123 205,097 211,250 217,587 As Equipment Treatment Plant MaintenanceComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 149,125 152,370 158,465 164,803 171,396 178,251 183,599 189,107 194,780 200,623 As Equipment Treatment Plant MaintenanceRadio Equipment Rental Radio Equipment Rental 34,551 40,688 42,316 44,008 45,768 47,599 49,027 50,498 52,013 53,573 As Equipment Treatment Plant MaintenanceOther Rentals Other Rentals 5,000 5,000 5,200 5,408 5,624 5,849 6,025 6,206 6,392 6,583 As Equipment Treatment Plant MaintenanceTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment Plant MaintenancePublicity & Advertising Publicity & Advertising 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment Plant MaintenancePostage/Mailing Services Postage/Mailing Services 1,200 2,500 2,588 2,678 2,758 2,841 2,926 3,014 3,105 3,198 As Materials & Supplies Treatment Plant MaintenanceLegal Services Legal Services 0 0 0 0 0 0 0 0 0 0 As Labor Treatment Plant MaintenanceEngineering Services Engineering Services 20,000 0 0 0 0 0 0 0 0 0 As Labor Treatment Plant MaintenanceTesting & Analysis Services Testing & Analysis Services 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Labor Treatment Plant MaintenanceProf & Special Services Prof & Special Services 131,600 37,000 38,110 39,253 40,431 41,644 42,893 44,180 45,505 46,870 As Labor Treatment Plant MaintenanceOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Treatment Plant MaintenanceBuilding Repairs/Maint Building Repairs/Maint 13,000 15,000 15,525 16,068 16,550 17,047 17,558 18,085 18,628 19,186 As Materials & Supplies Treatment Plant MaintenanceProcessing Fees Processing Fees 500 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment Plant MaintenanceVacation Sell Back (2) Vacation Sell Back (2) 0 3,346 3,446 3,550 3,656 3,766 3,879 3,995 4,115 4,239 As Labor Treatment Plant MaintenanceBuildings and Structures Buildings and Structures 0 250,000 258,750 267,806 275,840 284,116 292,639 301,418 310,461 319,775 As Materials & Supplies Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Other Services Total Other Services $1,682,528 $1,584,775 $1,651,648 $1,721,810 $1,790,091 $1,861,721 $1,932,658 $2,007,081 $2,085,217 $2,167,310
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 11 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Materials & Supplies
Treatment Plant MaintenanceMaterials & Supplies Materials & Supplies $600,000 $900,000 $931,500 $964,103 $993,026 $1,022,816 $1,053,501 $1,085,106 $1,117,659 $1,151,189 As Materials & Supplies Treatment Plant MaintenanceFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 168,664 106,078 109,791 113,634 117,043 120,554 124,170 127,896 131,732 135,684 As Materials & Supplies Treatment Plant MaintenanceNon-Capital Assets (2) Non-Capital Assets (2) 700,000 525,000 543,375 562,393 579,265 596,643 614,542 632,978 651,968 671,527 As Materials & Supplies Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Materials & Supplies Total Materials & Supplies $1,468,664 $1,531,078 $1,584,666 $1,640,129 $1,689,333 $1,740,013 $1,792,213 $1,845,980 $1,901,359 $1,958,400 Other Expenses
Treatment Plant MaintenanceTraining Training $10,000 $5,000 $5,150 $5,305 $5,464 $5,628 $5,796 $5,970 $6,149 $6,334 As Labor Treatment Plant MaintenanceMeetings & Travel Meetings & Travel 1,000 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment Plant MaintenanceRetirement Expense Retirement Expense 244,795 244,795 261,931 277,646 294,305 311,964 330,681 350,522 371,554 393,847 As Benefits - Retirement Treatment Plant MaintenanceVehicle Acquisition Vehicle Acquisition 160,000 265,000 275,600 286,624 298,089 310,013 319,313 328,892 338,759 348,922 As Equipment Treatment Plant MaintenanceEquipment Acquisition Equipment Acquisition 625,000 110,102 114,507 119,087 123,850 128,804 132,668 136,648 140,748 144,970 As Equipment Treatment Plant MaintenanceCapital Maintenance Capital Maintenance 550,000 300,000 312,000 324,480 337,459 350,958 361,486 372,331 383,501 395,006 As Equipment Treatment Plant MaintenanceSettlement Payments Settlement Payments 60,709 58,819 60,584 62,401 64,273 66,201 68,187 70,233 72,340 74,510 As Miscellaneous Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Other Expenses Total Other Expenses $1,651,504 $984,216 $1,030,288 $1,076,079 $1,123,992 $1,174,135 $1,218,718 $1,265,200 $1,313,672 $1,364,228 Other Support Services
Total Treatment Plant Maintenance $7,522,387 $6,924,699 $7,198,563 $7,476,067 $7,751,825 $8,039,100 $8,326,311 $8,625,352 $8,936,814 $9,261,319 Sanitary Pump Stations
Employee Services
Sanitary Pump StationsSalaries - Regular Salaries - Regular $1,141,367 $1,481,488 $1,525,933 $1,571,711 $1,618,862 $1,667,428 $1,717,451 $1,768,974 $1,822,043 $1,876,705 As Labor Sanitary Pump StationsRegular Overtime Regular Overtime 50,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 As Labor Sanitary Pump StationsStand By Time (Call Back) Stand By Time (Call Back) 17,000 22,600 23,278 23,976 24,696 25,436 26,200 26,986 27,795 28,629 As Labor Sanitary Pump StationsHoliday Pay Holiday Pay 500 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Labor Sanitary Pump StationsEmployee Separation Pay Employee Separation Pay 13,127 18,310 18,859 19,425 20,008 20,608 21,226 21,863 22,519 23,195 As Labor Sanitary Pump StationsAdditional Pay Additional Pay 14,097 8,674 8,934 9,202 9,478 9,763 10,056 10,357 10,668 10,988 As Labor Sanitary Pump StationsRetirement Retirement 294,940 424,024 453,706 480,928 509,784 540,371 572,793 607,161 643,590 682,206 As Benefits - Retirement Sanitary Pump StationsDeferred Compensation Deferred Compensation 60,236 79,193 84,737 89,821 95,210 100,923 106,978 113,397 120,200 127,412 As Benefits - Retirement Sanitary Pump StationsMedicare Medicare 17,604 22,690 23,371 24,072 24,794 25,538 26,304 27,093 27,906 28,743 As Benefits - Medical Sanitary Pump StationsHealth/Dental/Vision Health/Dental/Vision 197,242 271,111 279,244 287,622 296,250 305,138 314,292 323,721 333,432 343,435 As Benefits - Medical Sanitary Pump StationsL-T Disability Insurance L-T Disability Insurance 4,793 9,375 9,656 9,946 10,244 10,552 10,868 11,194 11,530 11,876 As Benefits - Other Sanitary Pump StationsLife Insurance Life Insurance 1,044 1,155 1,190 1,225 1,262 1,300 1,339 1,379 1,421 1,463 As Benefits - Other Sanitary Pump StationsWorkers' Compensation Workers' Compensation 117,570 108,927 112,195 115,561 119,027 122,598 126,276 130,065 133,966 137,985 As Benefits - Other Sanitary Pump StationsUnemployment Insurance Unemployment Insurance 1,750 1,592 1,640 1,689 1,740 1,792 1,846 1,901 1,958 2,017 As Benefits - Other Sanitary Pump StationsCell Phone Allowance Cell Phone Allowance 6,234 2,448 2,521 2,597 2,675 2,755 2,838 2,923 3,011 3,101 As Benefits - Other Sanitary Pump StationsVacation Sell Back Vacation Sell Back 0 3,021 3,112 3,205 3,301 3,400 3,502 3,607 3,715 3,827 As Labor Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Employee Services Total Employee Services $1,937,504 $2,515,608 $2,611,205 $2,705,694 $2,803,988 $2,906,257 $3,012,684 $3,123,457 $3,238,778 $3,358,855
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 12 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Other Services
Sanitary Pump StationsElectricity Electricity $1,620,000 $1,692,000 $1,776,600 $1,865,430 $1,958,702 $2,056,637 $2,159,468 $2,267,442 $2,380,814 $2,499,855 As Electricity Sanitary Pump StationsGas Ga 20,000 16,920 17,597 18,301 19,033 19,794 20,487 21,204 21,946 22,714 As Utilities Sanitary Pump StationsWater Water 75,000 50,000 52,000 54,080 56,243 58,493 60,540 62,659 64,852 67,122 As Utilities Sanitary Pump StationsTelephone Telephone 12,500 12,500 13,000 13,520 14,061 14,623 15,135 15,665 16,213 16,780 As Utilities Sanitary Pump StationsStorm Water Storm Water 3,000 3,000 3,120 3,245 3,375 3,510 3,632 3,760 3,891 4,027 As Utilities Sanitary Pump StationsMaint. & Repair Services Maint. & Repair Services 275,000 400,000 414,000 428,490 441,345 454,585 468,223 482,269 496,737 511,639 As Materials & Supplies Sanitary Pump StationsDuplication/Copy Costs Duplication/Copy Costs 200 200 207 214 221 227 234 241 248 256 As Materials & Supplies Sanitary Pump StationsInsurance Premiums Insurance Premiums 109,460 160,244 174,666 190,386 207,521 226,197 246,555 268,745 292,932 319,296 As Insurance Sanitary Pump StationsAutomotive Equip Rental Automotive Equip Rental 73,450 89,576 93,159 96,886 100,761 104,791 107,935 111,173 114,508 117,944 As Equipment Sanitary Pump StationsComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsRadio Equipment Rental Radio Equipment Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Sanitary Pump StationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Sanitary Pump StationsPostage/Mailing Services Postage/Mailing Services 1,000 2,500 2,588 2,678 2,758 2,841 2,926 3,014 3,105 3,198 As Materials & Supplies Sanitary Pump StationsProcessing Fees Processing Fees 1,000 8,000 8,280 8,570 8,827 9,092 9,364 9,645 9,935 10,233 As Materials & Supplies Sanitary Pump StationsTesting & Analysis Servcs Testing & Analysis Servcs 500 500 515 530 546 563 580 597 615 633 As Labor Sanitary Pump StationsEngineering Services Engineering Services 20,000 0 0 0 0 0 0 0 0 0 As Labor Sanitary Pump StationsProf & Special Services Prof & Special Services 21,500 24,000 24,720 25,462 26,225 27,012 27,823 28,657 29,517 30,402 As Labor Sanitary Pump StationsPublicity & Advertising Publicity & Advertising 1,000 500 518 536 552 568 585 603 621 640 As Materials & Supplies Sanitary Pump StationsUniform/Laundry Services Uniform/Laundry Services 7,000 15,500 16,043 16,604 17,102 17,615 18,144 18,688 19,249 19,826 As Materials & Supplies Sanitary Pump StationsTelephone Rental Telephone Rental 58,915 58,538 60,587 62,707 64,589 66,526 68,522 70,578 72,695 74,876 As Materials & Supplies Sanitary Pump StationsBuilding Repairs/Maint Building Repairs/Maint 17,000 15,000 15,525 16,068 16,550 17,047 17,558 18,085 18,628 19,186 As Materials & Supplies Sanitary Pump StationsRent Rent 1,500 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 As Miscellaneous Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Other Services Total Other Services $2,318,025 $2,550,478 $2,674,668 $2,805,298 $2,940,049 $3,081,810 $3,229,451 $3,384,816 $3,548,351 $3,720,528 Materials & Supplies
Sanitary Pump StationsMaterials & Supplies Materials & Supplies $341,617 $301,164 $311,705 $322,614 $332,293 $342,262 $352,529 $363,105 $373,998 $385,218 As Materials & Supplies Sanitary Pump StationsFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 0 0 0 0 0 0 0 0 0 0 As Utilities Sanitary Pump StationsNon-Capital Assets Non-Capital Assets 416,000 500,000 517,500 535,613 551,681 568,231 585,278 602,837 620,922 639,549 As Materials & Supplies Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Materials & Supplies Total Materials & Supplies $757,617 $801,164 $829,205 $858,227 $883,974 $910,493 $937,808 $965,942 $994,920 $1,024,768 Sanitary Pump Stations
Other Expenses
Sanitary Pump StationsTraining Training $10,000 $2,500 $2,575 $2,652 $2,732 $2,814 $2,898 $2,985 $3,075 $3,167 As Labor Sanitary Pump StationsTaxes Taxes 8,500 8,500 8,798 9,105 9,379 9,660 9,950 10,248 10,556 10,872 As Materials & Supplies Sanitary Pump StationsVehicle Acquisition Vehicle Acquisition 0 75,000 78,000 81,120 84,365 87,739 90,372 93,083 95,875 98,751 As Equipment Sanitary Pump StationsEquipment Acquisition Equipment Acquisition 830,000 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsSettlement Payments Settlement Payments 40,769 52,381 53,952 55,571 57,238 58,955 60,724 62,546 64,422 66,355 As Miscellaneous Sanitary Pump StationsCapital Maintenance Capital Maintenance 0 75,000 78,000 81,120 84,365 87,739 90,372 93,083 95,875 98,751 As Equipment Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Other Expenses Total Other Expenses $889,269 $213,381 $221,325 $229,569 $238,078 $246,908 $254,315 $261,944 $269,803 $277,897 Sanitary Pump Stations
Total Sanitary Pump Stations $5,902,415 $6,080,631
DRAFT
$6,336,403 $6,598,788 $6,866,088 $7,145,468 $7,434,257 $7,736,160 $8,051,851 $8,382,047
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 13 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Regulatory Compliance
Employee Services
Regulatory ComplianceSummary Account Summary Account $85,509 $112,903 $116,290 $119,779 $123,372 $127,073 $130,886 $134,812 $138,856 $143,022 As Miscellaneous Regulatory ComplianceRetirement Retirement 21,955 32,120 34,368 36,431 38,616 40,933 43,389 45,993 48,752 51,677 As Benefits - Retirement Regulatory ComplianceDeferred Compensation Deferred Compensation 4,703 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Regulatory ComplianceMedicare/Social Security Medicare/Social Security 1,246 1,637 1,686 1,737 1,789 1,842 1,898 1,955 2,013 2,074 As Benefits - Medical Regulatory ComplianceHealth/Dental/Vision Health/Dental/Vision 7,471 13,440 13,843 14,258 14,686 15,127 15,581 16,048 16,530 17,025 As Benefits - Medical Regulatory ComplianceL/T Disability Insurance L/T Disability Insurance 359 712 733 755 778 801 825 850 876 902 As Benefits - Other Regulatory ComplianceLife Insurance Life Insurance 40 57 59 60 62 64 66 68 70 72 As Benefits - Other Regulatory ComplianceWorker's Compensation Worker's Compensation 3,030 2,506 2,581 2,659 2,738 2,821 2,905 2,992 3,082 3,175 As Benefits - Other Regulatory ComplianceUnemployment Insurance Unemployment Insurance 120 113 116 120 123 127 131 135 139 143 As Benefits - Other Regulatory ComplianceAllowances Allowances 330 0 0 0 0 0 0 0 0 0 As Miscellaneous Regulatory ComplianceInsurance Premiums Insurance Premiums 7,726 11,629 12,676 13,816 15,060 16,415 17,893 19,503 21,258 23,172 As Insurance Regulatory Compliance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Regulatory ComplianceTotal Employee Services Total Employee Services $132,489 $175,117 $182,353 $189,615 $197,226 $205,204 $213,573 $222,356 $231,577 $241,262 Other Services
Regulatory ComplianceProcessing Fees Processing Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Regulatory ComplianceProf & Special Services Prof & Special Services 16,000 58,000 59,740 61,532 63,378 65,280 67,238 69,255 71,333 73,473 As Labor Regulatory ComplianceMaterials and Supplies Materials and Supplies 3,300 3,300 3,416 3,535 3,641 3,750 3,863 3,979 4,098 4,221 As Materials & Supplies Regulatory ComplianceTraining Training 550 550 567 583 601 619 638 657 676 697 As Labor Regulatory ComplianceSummary Account (2) Summary Account (2) 0 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 As Miscellaneous Regulatory ComplianceDeferred Compensation (2) Deferred Compensation (2) 0 9 10 10 11 11 12 13 14 14 As Benefits - Retirement Regulatory ComplianceDeferred Compensation (3) Deferred Compensation (3) 0 48 51 54 58 61 65 69 73 77 As Benefits - Retirement Regulatory Compliance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Regulatory ComplianceTotal Other Services Total Other Services $19,850 $65,407 $67,388 $69,429 $71,513 $73,661 $75,873 $78,151 $80,498 $82,916 Total Regulatory Compliance $152,339 $240,524 $249,741 $259,044 $268,739 $278,865 $289,446 $300,507 $312,075 $324,178 Safety Services
Employee Services
Safety ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Safety ServicesRegular Overtime Regular Overtime 1,500 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesRetirement Retirement 31,293 33,657 36,013 38,174 40,464 42,892 45,466 48,194 51,085 54,150 As Benefits - Retirement Safety ServicesDeferred Compensation Deferred Compensation 2,294 2,392 2,559 2,713 2,876 3,048 3,231 3,425 3,631 3,848 As Benefits - Retirement Safety ServicesMedicare Medicare 1,751 1,722 1,774 1,827 1,882 1,938 1,996 2,056 2,118 2,181 As Benefits - Medical Safety ServicesHealth/Dental/Vision Health/Dental/Vision 17,659 21,001 21,631 22,280 22,948 23,637 24,346 25,076 25,829 26,603 As Benefits - Medical Safety ServicesL/T Disability Insurance L/T Disability Insurance 510 742 764 787 811 835 860 886 913 940 As Benefits - Other Safety ServicesLife Insurance Life Insurance 91 87 90 92 95 98 101 104 107 110 As Benefits - Other Safety ServicesWorkers Compensation Workers Compensation 3,285 3,664 3,774 3,887 4,004 4,124 4,248 4,375 4,506 4,641 As Benefits - Other Safety ServicesUnemployment Insurance Unemployment Insurance 174 118 122 125 129 133 137 141 145 149 As Benefits - Other Safety ServicesCell Phone Allowance Cell Phone Allowance 645 600 618 637 656 675 696 716 738 760 As Miscellaneous Safety ServicesSummary Account Summary Account 121,341 117,704 121,235 124,872 128,618 132,477 136,451 140,545 144,761 149,104 As Miscellaneous Safety ServicesEmployee Separation Pay Employee Separation Pay 1,458 1,455 1,499 1,544 1,590 1,638 1,687 1,737 1,789 1,843 As Labor Safety ServicesAdditional Pay Additional Pay 600 600 618 637 656 675 696 716 738 760 As Labor Safety ServicesVacation Sell Back Vacation Sell Back 0 240 247 255 262 270 278 287 295 304 As Labor Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Employee Services Total Employee Services $182,601 $183,982 DRAFT
$190,943 $197,829 $204,990 $212,440 $220,192 $228,258 $236,655 $245,396
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 14 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Other Services
Safety ServicesMaint. & Repair Services Maint. & Repair Services $1,000 $1,500 $1,553 $1,607 $1,655 $1,705 $1,756 $1,809 $1,863 $1,919 As Materials & Supplies Safety ServicesUniform/Laundry Services Uniform/Laundry Services 1,750 200 207 214 221 227 234 241 248 256 As Materials & Supplies Safety ServicesDuplication/Copy Costs Duplication/Copy Costs 1,750 1,750 1,811 1,875 1,931 1,989 2,048 2,110 2,173 2,238 As Materials & Supplies Safety ServicesInsurance Premiums Insurance Premiums 11,146 12,258 13,361 14,564 15,874 17,303 18,860 20,558 22,408 24,425 As Insurance Safety ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 21,886 44,004 45,764 47,595 49,499 51,478 53,023 54,613 56,252 57,939 As Equipment Safety ServicesRadio Equipment Rental Radio Equipment Rental 1,599 1,309 1,361 1,416 1,472 1,531 1,577 1,625 1,673 1,724 As Equipment Safety ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Safety ServicesPostage/Mailing Services Postage/Mailing Services 175 175 181 187 193 199 205 211 217 224 As Materials & Supplies Safety ServicesTraining Services Training Services 0 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesSummary Account (2) Summary Account (2) 82,869 50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339 As Miscellaneous Safety ServicesTelephone Telephone 850 250 260 270 281 292 303 313 324 336 As Utilities Safety ServicesPublicity & Advertising Publicity & Advertising 600 500 518 536 552 568 585 603 621 640 As Materials & Supplies Safety ServicesSecurity & Alarm Services Security & Alarm Services 180,424 180,000 186,300 192,821 198,605 204,563 210,700 217,021 223,532 230,238 As Professional Services Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Other Services Total Other Services $304,049 $291,946 $302,816 $314,129 $324,919 $336,132 $347,256 $358,806 $370,806 $383,276 Safety Services
Materials & Supplies
Safety ServicesMaterials and Supplies Materials and Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Safety ServicesComputer Software Computer Software 7,500 6,000 6,210 6,427 6,620 6,819 7,023 7,234 7,451 7,675 As Materials & Supplies Safety ServicesSubscription-Periodical Subscription-Periodical 1,500 0 0 0 0 0 0 0 0 0 As Materials & Supplies Safety ServicesLibrary Materials Library Materials 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Safety ServicesSummary Account (3) Summary Account (3) 40,000 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 As Miscellaneous Safety ServicesNon-Capital Assets Non-Capital Assets 1,875 2,000 2,070 2,142 2,207 2,273 2,341 2,411 2,484 2,558 As Materials & Supplies Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Materials & Supplies Total Materials & Supplies $50,875 $38,000 $39,180 $40,397 $41,609 $42,857 $44,143 $45,467 $46,831 $48,236 Safety Services
Other Expenses
Safety ServicesTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Safety ServicesMemberships Memberships 650 150 155 161 166 170 176 181 186 192 As Materials & Supplies Safety ServicesSummary Account (4) Summary Account (4) 2,500 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 As Miscellaneous Safety ServicesSettlement Payments Settlement Payments 4,522 4,160 4,285 4,413 4,546 4,682 4,823 4,967 5,116 5,270 As Miscellaneous Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Other Expenses Total Other Expenses $7,672 $6,810 $7,015 $7,226 $7,443 $7,666 $7,896 $8,133 $8,377 $8,629 Safety Services
Total Safety Services $545,197 $520,738 $539,955 $559,581 $578,962 $599,096 $619,486 $640,665 $662,669 $685,536
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 15 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
SCADA Services
Employee Services
SCADA ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor SCADA ServicesRegular Overtime Regular Overtime 1,100 1,100 1,133 1,167 1,202 1,238 1,275 1,313 1,353 1,393 As Labor SCADA ServicesRetirement Retirement 47,822 56,805 60,781 64,428 68,294 72,392 76,735 81,339 86,220 91,393 As Benefits - Retirement SCADA ServicesMedicare Medicare 2,699 2,904 2,991 3,081 3,173 3,268 3,367 3,468 3,572 3,679 As Benefits - Medical SCADA ServicesHealth/Dental/Vision Health/Dental/Vision 23,229 28,728 29,590 30,478 31,392 32,334 33,304 34,303 35,332 36,392 As Benefits - Medical SCADA ServicesL/T Disability Insurance L/T Disability Insurance 783 1,256 1,294 1,332 1,372 1,414 1,456 1,500 1,545 1,591 As Benefits - Other SCADA ServicesLife Insurance Life Insurance 110 110 113 117 120 124 128 131 135 139 As Benefits - Other SCADA ServicesWorkers Compensation Workers Compensation 5,582 6,055 6,237 6,424 6,616 6,815 7,019 7,230 7,447 7,670 As Benefits - Other SCADA ServicesUnemployment Insurance Unemployment Insurance 263 202 208 214 221 227 234 241 248 256 As Benefits - Other SCADA ServicesCell Phone Allowance Cell Phone Allowance 714 0 0 0 0 0 0 0 0 0 As Miscellaneous SCADA ServicesSummary Account Summary Account 186,514 199,509 205,494 211,659 218,009 224,549 231,286 238,224 245,371 252,732 As Miscellaneous SCADA ServicesEmployee Separation Pay Employee Separation Pay 2,241 3,862 3,978 4,097 4,220 4,347 4,477 4,611 4,750 4,892 As Labor SCADA ServicesVacation Sell Back Vacation Sell Back 0 407 419 432 445 458 472 486 501 516 As Labor SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Employee Services Total Employee Services $271,057 $300,938 $312,238 $323,429 $335,065 $347,165 $359,752 $372,847 $386,472 $400,653 SCADA Services
Other Services
SCADA ServicesTelephone Telephone $16,000 $18,700 $19,355 $20,032 $20,633 $21,252 $21,889 $22,546 $23,222 $23,919 As Materials & Supplies SCADA ServicesInsurance Premiums Insurance Premiums 16,933 20,664 22,524 24,551 26,760 29,169 31,794 34,656 37,775 41,174 As Insurance SCADA ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 40,850 42,113 43,798 45,549 47,371 49,266 50,744 52,267 53,835 55,450 As Equipment SCADA ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment SCADA ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 0 0 As Labor SCADA ServicesSummary Account (2) Summary Account (2) 46,750 49,500 50,985 52,515 54,090 55,713 57,384 59,106 60,879 62,705 As Miscellaneous SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Other Services Total Other Services $120,533 $130,977 $136,661 $142,647 $148,855 $155,400 $161,812 $168,574 $175,710 $183,248 SCADA Services
Materials & Supplies
SCADA ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies SCADA ServicesComputer Software Computer Software 78,700 110,000 113,850 117,835 121,370 125,011 128,761 132,624 136,603 140,701 As Materials & Supplies SCADA ServicesSummary Account (3) Summary Account (3) 1,925 2,750 2,833 2,917 3,005 3,095 3,188 3,284 3,382 3,484 As Miscellaneous SCADA ServicesNon-Capital Assets Non-Capital Assets 1,925 165,000 170,775 176,752 182,055 187,516 193,142 198,936 204,904 211,051 As Materials & Supplies SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Materials & Supplies Total Materials & Supplies $82,550 $277,750 $287,458 $297,504 $306,429 $315,622 $325,091 $334,844 $344,889 $355,236 Other Expenses
SCADA ServicesMeetings & Travel Meetings & Travel $2,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies SCADA ServicesSummary Account (4) Summary Account (4) 4,400 2,750 2,833 2,917 3,005 3,095 3,188 3,284 3,382 3,484 As Miscellaneous SCADA ServicesSettlement Payments Settlement Payments 6,913 7,022 7,233 7,450 7,673 7,903 8,140 8,385 8,636 8,895 As Miscellaneous SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Other Expenses Total Other Expenses $13,513 $9,772 $10,065 $10,367 $10,678 $10,998 $11,328 $11,668 $12,018 $12,379 Total SCADA Services $487,653 $719,437 $746,422 $773,947 $801,027 $829,186 $857,983 $887,933 $919,090 $951,516
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 16 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Outreach & Training Services
Employee Services
Outreach & Training ServicesRegular Overtime Regular Overtime $600 $350 $361 $371 $382 $394 $406 $418 $430 $443 As Labor Outreach & Training ServicesMedicare Medicare 587 639 658 678 698 719 741 763 786 809 As Benefits - Medical Outreach & Training ServicesWorkers Compensation Workers Compensation 1,103 1,357 1,398 1,440 1,483 1,527 1,573 1,620 1,669 1,719 As Benefits - Other Outreach & Training ServicesSummary Account Summary Account 40,955 43,873 45,189 46,545 47,941 49,379 50,861 52,387 53,958 55,577 As Miscellaneous Outreach & Training ServicesEmployee Separation Pay Employee Separation Pay 492 542 558 575 592 610 628 647 667 687 As Labor Outreach & Training ServicesAdditional Pay Additional Pay 34 0 0 0 0 0 0 0 0 0 As Labor Outreach & Training ServicesRetirement Retirement 10,501 12,482 13,356 14,157 15,007 15,907 16,861 17,873 18,945 20,082 As Benefits - Retirement Outreach & Training ServicesHealth/Dental/Vision Health/Dental/Vision 4,754 5,880 6,056 6,238 6,425 6,618 6,817 7,021 7,232 7,449 As Benefits - Medical Outreach & Training ServicesL/T Disability Insurance L/T Disability Insurance 172 276 284 293 302 311 320 330 339 350 As Benefits - Other Outreach & Training ServicesLife Insurance Life Insurance 25 25 26 27 27 28 29 30 31 32 As Benefits - Other Outreach & Training ServicesUnemployment Insurance Unemployment Insurance 58 44 45 47 48 50 51 53 54 56 As Benefits - Other Outreach & Training ServicesAllowances Allowances 210 210 216 223 229 236 243 251 258 266 As Miscellaneous Outreach & Training ServicesAdditional Pay (2) Additional Pay (2) 0 158 163 168 173 178 183 189 194 200 As Labor Outreach & Training ServicesVacation Sell Back Vacation Sell Back 0 90 93 95 98 101 104 107 111 114 As Labor Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Employee Services Total Employee Services $59,491 $65,926 $68,403 $70,856 $73,406 $76,059 $78,818 $81,688 $84,675 $87,783 Other Services
Outreach & Training ServicesInsurance Premiums Insurance Premiums $3,750 $4,557 $4,967 $5,414 $5,901 $6,433 $7,012 $7,643 $8,330 $9,080 As Insurance Outreach & Training ServicesPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Outreach & Training ServicesDuplication/Copy Costs Duplication/Copy Costs 15,000 15,000 15,525 16,068 16,550 17,047 17,558 18,085 18,628 19,186 As Materials & Supplies Outreach & Training ServicesPublicity & Advertising Publicity & Advertising 35,000 35,000 36,225 37,493 38,618 39,776 40,969 42,199 43,465 44,768 As Materials & Supplies Outreach & Training ServicesPostage/Mailing Services Postage/Mailing Services 60,000 60,000 62,100 64,274 66,202 68,188 70,233 72,340 74,511 76,746 As Materials & Supplies Outreach & Training ServicesProcessing Fees Processing Fees 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Outreach & Training ServicesTraining Services Training Services 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Labor Outreach & Training ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 0 0 As Labor Outreach & Training ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 3,527 2,424 2,521 2,622 2,727 2,836 2,921 3,008 3,099 3,192 As Equipment Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Other Services Total Other Services $118,277 $117,981 $122,368 $126,932 $131,091 $135,405 $139,853 $144,469 $149,262 $154,239 Materials & Supplies
Outreach & Training ServicesComputer Software Computer Software $100 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Outreach & Training ServicesSubscription-Periodical Subscription-Periodical 60 90 93 96 99 102 105 109 112 115 As Materials & Supplies Outreach & Training ServicesMaterials and Supplies Materials and Supplies 9,000 9,000 9,360 9,734 10,124 10,529 10,845 11,170 11,505 11,850 As Equipment Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Materials & Supplies Total Materials & Supplies $9,160 $9,090 $9,453 $9,831 $10,223 $10,631 $10,950 $11,278 $11,617 $11,965 Other Expenses
Outreach & Training ServicesMeetings & Travel Meetings & Travel $200 $200 $207 $214 $221 $227 $234 $241 $248 $256 As Materials & Supplies Outreach & Training ServicesMemberships Memberships 125 125 129 134 138 142 146 151 155 160 As Materials & Supplies Outreach & Training ServicesTraining Training 0 0 0 0 0 0 0 0 0 0 As Labor Outreach & Training ServicesSettlement Payments Settlement Payments 1,518 1,543 1,589 1,637 1,686 1,737 1,789 1,842 1,898 1,955 As Miscellaneous Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Other Expenses Total Other Expenses $1,843 $1,868 $1,926 $1,985 $2,045 $2,106 $2,169 $2,234 $2,301 $2,370 Total Outreach & Training Services $188,771 $194,865 $202,150 $209,603 $216,765 $224,200 $231,789 $239,670 $247,855 $256,358 Total Operations & Maintenance $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419
7.3%DRAFT 3.9% 3.8% 3.8% 3.8% 3.6% 3.6% 3.6% 3.6%
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 17 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Taxes & Transfers
Taxes & Transfers Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Taxes & Transfers Total Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rate Funded Capital $15,000,000 $16,000,000 $17,000,000 $18,000,000 $18,500,000 $19,500,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 FY 2023 Depr Exp = $12,901,960 Debt Service
Wastewater Revenue Refunding Bonds, 2014 Revenue Bond Wastewater Revenue Refunding Bonds, 2014 Revenue Bond $6,486,375 $6,698,250 $6,692,375 $6,693,250 $6,695,000 $6,696,875 $6,693,250 $0 $0 $0 Exhibit 5 Regional Wastewater Facility Modification - N18126CA WIFIA Loan Regional Wastewater Facility Modification - N18126CA WIFIA Loan 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 5,588,884 5,588,573 5,588,259 Exhibit 5 Regional Wastewater Control Facilities (SRF) Regional Wastewater Control Facilities (SRF) 0 1,603,318 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 Exhibit 5 Assumed Future SRF Loan Assumed Future SRF Loan 0 0 0 0 0 0 0 0 0 0 Calc'd @ 2.52% for 30 yrs Asssumed Revenue Bond Asssumed Revenue Bond 0 0 0 0 0 0 0 0 0 0 Calc'd @ 5% for 30 yrs Additional Revenue Bond Additional Revenue Bond 0 0 0 0 0 0 0 0 0 0 Calc'd @ 5% for 30 yrs ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Debt Service Total Debt Service $7,782,375 $9,597,568 $9,779,115 $9,779,990 $9,781,740 $9,783,615 $9,779,990 $7,379,624 $7,379,313 $7,378,999 Less: Debt Service Funding Less: Debt Service Funding
Connection Fees (434 Fund) Connection Fees (434 Fund) $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $0 $0 $0 Bond Defeasance (431 Fund) Bond Defeasance (431 Fund) 0 0 0 0 0 0 0 0 0 0 Bond Defeasance (434 Fund) Bond Defeasance (434 Fund) 0 0 0 0 0 0 0 0 0 0 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Less Debt Service Funding Total Less Debt Service Funding $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $0 $0 $0 Net Debt Service Net Debt Service $5,686,639 $7,501,832 $7,683,379 $7,684,254 $7,686,004 $7,687,879 $7,684,254 $7,379,624 $7,379,313 $7,378,999 To / (From) Reserves
Operating Fund - Sewer (431) Operating Fund - Sewer (431) $165,830 ($4,842,874) ($2,829,643) ($1,919,471) ($550,007) $393,416 $2,024,707 $4,158,256 $6,201,504 $8,469,159 Capital Fund - SewerCapital Fund - Sewer 0 0 0 0 0 0 0 0 0 0 Rate Stabilization Fund - Sewer (438) Rate Stabilization Fund - Sewer (438) 0 0 0 0 0 0 0 0 0 0 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total To / (From) Reserves Total To / (From) Reserves $165,830 ($4,842,874) ($2,829,643) ($1,919,471) ($550,007) $393,416 $2,024,707 $4,158,256 $6,201,504 $8,469,159 Total Revenue Requirement $93,362,459 $96,462,351 $102,690,523 $107,709,440 $112,758,930 $118,015,095 $123,888,629 $130,094,575 $136,651,909 $143,577,577 Bal /(Def) of Funds $0 ($2,138,608) ($7,553,808) ($11,674,396) ($16,040,060) ($20,663,526) ($25,558,166) ($30,738,027) ($36,217,870) ($42,013,204) Bal as a % of Rate Adj 0.0% 2.3% 8.2% 12.5% 17.0% 21.7% 26.5% 31.6% 36.9% 42.3% Proposed Rate Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Months of Adjustment 12 7 12 12 12 12 12 12 12 12
Add'l Revenue with Rate Adj $0 $2,138,608 $7,553,808 $11,674,396 $16,040,060 $20,663,526 $25,558,166 $30,738,027 $36,217,870 $42,013,204 Bal / (Def) After Rate Adj $0 $0 ($0) ($0) $0 $0 $0 $0 $0 $0 Total Balance as a % of Rates 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Additional Rate Adjustment Required 0.0% -1.6%DRAFT 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 18 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Projected
Notes
Average Residential Customer Bill $55.68
Customer Bill on Proposed Adj. $55.68 $57.91 $60.22 $62.63 $65.14 $67.74 $70.45 $73.27 $76.20 $79.25 Bill Difference - Monthly 2.23 2.32 2.41 2.51 2.61 2.71 2.82 2.93 3.05 Cumulative Bill Difference 2.23 4.54 6.95 9.46 12.06 14.77 17.59 20.52 23.57 Debt Service Coverage Ratio (all debt) - No Connection Fees Before Rate Adjustment 2.68 1.72 1.46 1.24 0.98 0.71 0.48 0.31 0.00 0.00 Target 1.00 After Proposed Rate Adjustment 2.68 1.94 2.23 2.43 2.62 2.82 3.09 4.48 4.89 5.33 Target 1.00 Debt Service Coverage Ratio (all debt) - Plus Connection Fees Before Rate Adjustment 3.04 2.01 1.75 1.52 1.27 0.99 0.76 0.69 0.36 0.02 Target 1.25 After Proposed Rate Adjustment 3.04 2.24 2.52 2.72 2.91 3.10 3.37 4.86 5.27 5.71 Target 1.25 Debt Service Coverage Ratio (all debt) - Plus Conn Fees & Rate Stabilization Before Rate Adjustment 4.73 3.40 3.12 2.91 2.67 2.41 2.19 2.61 2.30 1.97 Target 1.25 After Proposed Rate Adjustment 4.73 3.62 3.90 4.11 4.31 4.52 4.81 6.77 7.20 7.67 Target 1.25 Cash Reserves
Beginning Reserve Balances $71,043,938 $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 Operating Fund - Sewer (431)
Beginning Balance $39,458,549 $39,624,380 $34,501,767 $29,584,641 $17,665,170 $7,115,164 $7,508,580 $9,533,287 $13,691,543 $19,893,047 Plus: Additions 165,830 0 0 0 0 393,416 2,024,707 4,158,256 6,201,504 8,469,159 Repayment to 434 0 0 0 0 0 0 0 0 0 0
Less: Bond Defeasance 0 0 0 0 0 0 0 0 0 0
Less: Uses of Funds 0 (5,122,613) (4,917,126) (11,919,471) (10,550,007) 0 0 0 0 0 Ending Balance $39,624,380 $34,501,767 $29,584,641 $17,665,170 $7,115,164 $7,508,580 $9,533,287 $13,691,543 $19,893,047 $28,362,206 Capital Fund - Sewer
Beginning Balance $1,954,429 $39,316,723 $61,518,390 $50,492,074 $41,146,495 $35,090,460 $35,441,365 $35,795,778 $36,153,736 $36,515,273 Plus: Additions 0 0 0 0 0 0 0 0 0 0
Plus: Grant Funds 2,056,965 10,000,000 0 0 0 0 0 0 0 0
Plus: 2024-25 SRF Reimbursement 35,100,000 11,700,000 0 0 0 0 0 0 0 0 Plus Interest Earned 205,329 501,667 673,684 554,421 443,965 350,905 354,414 357,958 361,537 365,153 Less: Uses of Funds 0 0 (11,700,000) (9,900,000) (6,500,000) 0 0 0 0 0 Ending Balance $39,316,723 $61,518,390 $50,492,074 $41,146,495 $35,090,460 $35,441,365 $35,795,778 $36,153,736 $36,515,273 $36,880,426 Target Minimum - 6 mo. of O&M $36,254,995 $38,901,696 $40,418,393 $41,972,328 $43,561,467 $45,216,900 $46,839,834 $48,528,347 $50,285,546 $52,114,710 50.0% O&M Target Ending Bal. / (Def.) $42,686,108 $57,118,461 $39,658,322 $16,839,337 ($1,355,843) ($2,266,956) ($1,510,769) $1,316,932 $6,122,775 $13,127,923 Plus Prior Reserve Fund Appropriations $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 Target Ending Bal. / (Def.) $72,686,108 $87,118,461 $69,658,322 $46,839,337 $28,644,157 $27,733,044 $28,489,231 $31,316,932 $36,122,775 $43,127,923 Long-Term Debt Proceeds Fund
Beginning Balance $8,927,426 $8,927,426 $4,628,267 ($0) ($0) ($0) ($0) ($0) ($0) ($0) Plus: Additions 0 0 0 0 0 0 0 0 0 0
Less: Uses of Funds 0 (4,299,159) (4,628,267) 0 0 0 0 0 0 0 Ending Balance $8,927,426 $4,628,267 ($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0) Rate Stabilization Fund - Sewer (438)
Beginning Balance $13,196,246 $13,328,208 $13,461,490 $13,596,105 $13,732,066 $13,869,387 $14,008,081 $14,148,161 $14,289,643 $14,432,539 Plus: Additions 0 0 0 0 0 0 0 0 0 0
Plus Interest Earned 131,962 133,282 134,615 135,961 137,321 138,694 140,081 141,482 142,896 144,325 Less: Uses of Funds 0 0 0 0 0 0 0 0 0 0
Ending Balance $13,328,208 $13,461,490 $13,596,105 $13,732,066 $13,869,387 $14,008,081 $14,148,161 $14,289,643 $14,432,539 $14,576,865 Connection Fee Fund - Sewer (434)
Beginning Balance $5,450,324 $6,206,899 $6,971,039 $7,742,821 $8,522,321 $9,309,616 $10,104,784 $10,907,903 $13,825,269 $16,771,808 Connection Fees 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 As Flat Plus Interest Earned 57,996 65,562 73,203 80,921 88,716 96,589 104,541 123,051 152,224 181,690 Repayment from 431 0 0 0 0 0 0 0 0 0 0
Bond Defeasance 0 0 0 0 0 0 0 0 0 0
Less: Uses of Funds (2,095,736) (2,095,736) (2,095,736) (2,095,736) (2,095,736) (2,095,736) (2,095,736) 0 0 0 Ending Balance $6,206,899 $6,971,039 $7,742,821 $8,522,321 $9,309,616 $10,104,784 $10,907,903 $13,825,269 $16,771,808 $19,747,813 Total Ending Balance $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 $99,567,310
DRAFT ATTACHMENT A
City of Stockton Page 1 of 2
Wastewater Rate Study Inflation = 0.0% CIP provided by City; already inflated per 7/8/2024 email Capital Improvement Plan
Exhibit 4
24 25 26 27 28 29 30 31 32 33
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Notes RWCF Upgrades
RWCF Evaluation and Rehabilitation of Digesters A, B and C $2,000,000 $0 $1,000,000 $1,000,000 $0 $0 $0 $0 $0 $0 $4,000,000 RWCF Sludge Day Tank Mixing Rehabiltation 200,000 0 100,000 0 0 0 0 0 0 0 300,000 RWCF Cogeneration Engine No. 1 Rebuild 0 375,000 375,000 250,000 0 0 0 0 0 0 1,000,000 RWCF Digester Gas Scrubber 500,000 0 500,000 500,000 0 0 0 0 0 0 1,500,000 RWCF Tertiary Road Repairs 750,000 250,000 250,000 250,000 0 0 0 0 0 0 1,500,000 RWCF Cogeneration Engine No. 4 Rebuild 750,000 0 250,000 0 0 0 0 0 0 0 1,000,000 RWCF Large Diameter Pipe Inspection 200,000 0 100,000 0 0 0 0 0 0 0 300,000 RWCF Hot Water Boiler 450,000 100,000 0 0 0 0 0 0 0 0 550,000 RWCF Cogeneration Engine No. 3 Rebuild 0 0 0 750,000 250,000 0 0 0 0 0 1,000,000 Emergency RWCF CIP 0 1,000,000 0 0 0 0 0 0 0 0 1,000,000 RWCF South Bioscrubber Repairs 0 0 900,000 0 0 0 0 0 0 0 900,000 Modifications of 3W Piping System 0 722,000 0 0 0 0 0 0 0 0 722,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total RWCF Upgrades $4,850,000 $2,447,000 $3,475,000 $2,750,000 $250,000 $0 $0 $0 $0 $0 $13,772,000 Pipe Projects
Sanitary Sewer Large Diameter Lines Replacement per AMMP $0 $2,379,348 $0 $0 $0 $0 $0 $0 $0 $0 $2,379,348 Wastewater Master Plan Update 225,000 100,000 0 0 0 0 0 0 0 0 325,000 Union Street Rehabilitation between Harding and Acacia 0 0 500,000 0 0 0 0 0 0 0 500,000 Sanitary Sewer Small Diameter Lines Replacement per AMMP 0 500,000 0 0 0 0 0 0 0 0 500,000 Lincoln Road Sanitary Sewer Line Rehab between Pershing Ave. and Alexandria Place 0 2,019,750 2,019,750 0 0 0 0 0 0 0 4,039,500 South Tuxedo Avenue Sewer Trunk Rehabilitation 512,000 2,019,800 0 0 0 0 0 0 0 0 2,531,800 Scibner Street Area Backyard Sewers 1,100,000 1,000,000 0 0 0 0 0 0 0 0 2,100,000 FY25 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 400,000 0 0 0 0 0 0 0 0 400,000 FY26 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 400,000 0 0 0 0 0 0 0 400,000 FY27 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 0 400,000 0 0 0 0 0 0 400,000 FY28 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 0 0 400,000 0 0 0 0 0 400,000 FY29 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 0 0 0 400,000 0 0 0 0 400,000 FY25 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 200,000 0 0 0 0 0 0 0 0 200,000 FY26 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 200,000 0 0 0 0 0 0 0 200,000 FY27 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 0 200,000 0 0 0 0 0 0 200,000 FY28 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 0 0 200,000 0 0 0 0 0 200,000 FY29 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 0 0 0 200,000 0 0 0 0 200,000 FY25 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 150,000 0 0 0 0 0 0 0 0 150,000 FY26 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 150,000 0 0 0 0 0 0 0 150,000 FY27 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 0 150,000 0 0 0 0 0 0 150,000 FY28 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 0 0 150,000 0 0 0 0 0 150,000 FY29 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 0 0 0 150,000 0 0 0 0 150,000 Westside Interceptor Parallel Force Main 0 6,000,000 6,000,000 14,400,000 14,800,000 15,200,000 0 0 0 0 56,400,000 San Jose Street and Yosemite Street Backyard Sewer Lines Replacement 0 257,000 865,000 0 0 0 0 0 0 0 1,122,000 Charter Way and Grant Street Sewer Line Replacement 0 365,000 0 0 0 0 0 0 0 0 365,000 El Dorado Street and Howard Street Easement Sewer Line Replacement 0 545,000 0 0 0 0 0 0 0 0 545,000 FY25 Large Diameter Trunk Sewer Pipeline Inspection 0 200,000 0 0 0 0 0 0 0 0 200,000 FY26 Large Diameter Trunk Sewer Pipeline Inspection 0 0 200,000 0 0 0 0 0 0 0 200,000 FY27 Large Diameter Trunk Sewer Pipeline Inspection 0 0 0 200,000 0 0 0 0 0 0 200,000 FY28 Large Diameter Trunk Sewer Pipeline Inspection 0 0 0 0 200,000 0 0 0 0 0 200,000 FY29 Large Diameter Trunk Sewer Pipeline Inspection 0 0 0 0 0 200,000 0 0 0 0 200,000 Pershing Ave Sewer Trunk Rehabilitation 527,000 1,246,000 0 0 0 0 0 0 0 0 1,773,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Pipe Projects $2,364,000 $17,381,898 $10,334,750 $15,350,000 $15,750,000 $16,150,000 $0 $0 $0 $0 $77,330,648
DRAFT ATTACHMENT A
City of Stockton Page 2 of 2
Wastewater Rate Study Inflation = 0.0% CIP provided by City; already inflated per 7/8/2024 email Capital Improvement Plan
Exhibit 4
24 25 26 27 28 29 30 31 32 33
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Total Notes Pump Station Rehabilitation
Fourteen Mile Slough Sanitary Pump Station Assessment/Rebuild $0 $0 $15,000,000 $15,000,000 $15,000,000 $0 $0 $0 $0 $0 $45,000,000 System 10 Sewer Relief Forcemain 0 500,000 500,000 0 4,000,000 0 0 0 0 0 5,000,000 Brookside Estates Sanitary Sewer Pump Station 500,000 0 300,000 0 0 0 0 0 0 0 800,000 Swenson Road & 5 Mile Creek Sanitary Sewer Pump Station (source: 2008 Master Plan) 100,000 0 1,000,000 1,000,000 0 0 0 0 0 0 2,100,000 Lincoln Street Sanitary Sewer Pump Station and Forcemain 4,500,000 0 2,000,000 2,500,000 0 0 0 0 0 0 9,000,000 Camanche Sanitary Sewer Pump Station Rehabilitation 0 0 0 550,000 0 0 0 0 0 0 550,000 College Park Sanitary Sewer Pump Station Rehabilitation 0 0 0 750,000 0 0 0 0 0 0 750,000 Waterloo Sanitary Sewer Pump Station Rehabilitation 0 0 1,303,000 0 0 0 0 0 0 0 1,303,000 Drake Sanitary Sewer Pump Station Rehabilitation 0 0 1,303,000 0 0 0 0 0 0 0 1,303,000 Sanitary Pump Station Transfer Switch Installation 0 250,000 200,000 0 0 0 0 0 0 0 450,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Pump Station Rehabilitation $5,100,000 $750,000 $21,606,000 $19,800,000 $19,000,000 $0 $0 $0 $0 $0 $66,256,000 Future Unidentified Capital Improvements $2,686,000 $0 $0 $0 $0 $3,350,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 $94,036,000 Transfer to Long-Term Debt Proceeds Fund $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Capital Improvement Projects $15,000,000 $20,578,898 $35,415,750 $37,900,000 $35,000,000 $19,500,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 $251,394,648 Less: Other Funding Sources
Operating Fund - Sewer (431) $0 $279,739 $2,087,483 $10,000,000 $10,000,000 $0 $0 $0 $0 $0 $22,367,222 Input Connection Fee Fund - Sewer (434) 0 0 0 0 0 0 0 0 0 0 0 Fund 434 Capital Fund - Sewer 0 0 11,700,000 9,900,000 6,500,000 0 0 0 0 0 28,100,000 Input Long-Term Debt Proceeds Fund 0 4,299,159 4,628,267 0 0 0 0 0 0 0 8,927,426 Input Assumed Future SRF Loan 0 0 0 0 0 0 0 0 0 0 0
Assumed Revenue Bonds 0 0 0 0 0 0 0 0 0 0 0 Input
Revenue Bonds 0 0 0 0 0 0 0 0 0 0 0 Calculated
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------- Total Other Funding Sources $0 $4,578,898 $18,415,750 $19,900,000 $16,500,000 $0 $0 $0 $0 $0 $59,394,648 Rate Funded Capital $15,000,000 $16,000,000 $17,000,000 $18,000,000 $18,500,000 $19,500,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 $192,000,000
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Calculation of Annual Debt Service Payments
Exhibit 5
Wastewater Revenue Refunding Bonds, 2014 Revenue BondPrincipal Wastewater Revenue Refunding Bonds, 2014 Revenue BondInterest Wastewater Revenue Refunding Bonds, 2014 Revenue BondTotal Regional Wastewater Facility Modification - N18126CA WIFIA LoanPrincipal Regional Wastewater Facility Modification - N18126CA WIFIA LoanInterest Regional Wastewater Facility Modification - N18126CA WIFIA LoanTotal Regional Wastewater Control Facilities (SRF)Total Year
Total Annual
Debt Service
(P&I)
Principal Interest Total Principal Interest Total Principal Interest Total FY 2023-24 $4,635,000 $1,851,375 $6,486,375 $0 $1,296,000 $1,296,000 $0 $0 $0 $7,782,375 FY 2024-25 5,090,000 1,608,250 6,698,250 0 1,296,000 1,296,000 1,252,669 350,649 1,603,318 9,597,568 FY 2025-26 5,345,000 1,347,375 6,692,375 0 1,296,000 1,296,000 1,399,898 390,842 1,790,740 9,779,115 FY 2026-27 5,620,000 1,073,250 6,693,250 0 1,296,000 1,296,000 1,393,413 397,327 1,790,740 9,779,990 FY 2027-28 5,910,000 785,000 6,695,000 0 1,296,000 1,296,000 1,405,954 384,786 1,790,740 9,781,740 FY 2028-29 6,215,000 481,875 6,696,875 0 1,296,000 1,296,000 1,418,607 372,133 1,790,740 9,783,615 FY 2029-30 6,530,000 163,250 6,693,250 0 1,296,000 1,296,000 1,431,375 359,365 1,790,740 9,779,990 FY 2030-31 0 0 0 4,318,797 1,270,087 5,588,884 1,444,257 346,483 1,790,740 7,379,624 FY 2031-32 0 0 0 4,370,622 1,217,951 5,588,573 1,457,255 333,484 1,790,740 7,379,313 FY 2032-33 0 0 0 4,423,070 1,165,189 5,588,259 1,470,371 320,369 1,790,740 7,378,999 FY 2033-34 0 0 0 4,476,147 1,111,793 5,587,940 1,483,604 307,136 1,790,740 7,378,680 FY 2034-35 0 0 0 4,529,860 1,057,757 5,587,617 1,496,956 293,783 1,790,740 7,378,357 FY 2035-36 0 0 0 4,584,219 1,003,073 5,587,292 1,510,429 280,311 1,790,740 7,378,032 FY 2036-37 0 0 0 4,639,229 947,732 5,586,961 1,524,023 266,717 1,790,740 7,377,701 FY 2037-38 0 0 0 4,694,900 891,727 5,586,627 1,537,739 253,001 1,790,740 7,377,367 FY 2038-39 0 0 0 4,751,239 835,050 5,586,289 1,551,579 239,161 1,790,740 7,377,029 FY 2039-40 0 0 0 4,808,254 777,694 5,585,948 1,565,543 225,197 1,790,740 7,376,688 FY 2040-41 0 0 0 4,865,953 719,648 5,585,601 1,579,633 211,107 1,790,740 7,376,341 FY 2041-42 0 0 0 4,924,344 660,906 5,585,250 1,593,850 196,890 1,790,740 7,375,990 FY 2042-43 0 0 0 4,983,436 601,460 5,584,896 1,608,194 182,546 1,790,740 7,375,636 FY 2043-44 0 0 0 5,043,238 541,300 5,584,538 1,622,668 168,072 1,790,740 7,375,278 FY 2044-45 0 0 0 5,103,756 480,418 5,584,174 1,637,272 153,468 1,790,740 7,374,914 FY 2045-46 0 0 0 5,165,001 418,805 5,583,806 1,652,007 138,732 1,790,740 7,374,546 FY 2046-47 0 0 0 5,226,981 356,453 5,583,434 1,666,876 123,864 1,790,740 7,374,174 FY 2047-48 0 0 0 5,289,705 293,353 5,583,058 1,681,877 108,862 1,790,740 7,373,798 FY 2048-49 0 0 0 5,353,182 229,496 5,582,678 1,697,014 93,726 1,790,740 7,373,418 FY 2049-50 0 0 0 5,417,420 164,872 5,582,292 1,712,287 78,452 1,790,740 7,373,032 FY 2050-51 0 0 0 5,482,429 99,473 5,581,902 1,727,698 63,042 1,790,740 7,372,642 FY 2051-52 0 0 0 5,548,218 33,289 5,581,507 1,743,247 47,493 1,790,740 7,372,247 FY 2052-53 0 0 0 0 0 0 1,758,937 31,803 1,790,740 1,790,740 FY 2053-54 0 0 0 0 0 0 1,774,767 15,973 1,790,740 1,790,740 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ------------------ ------------------ ------------------ ------------------ $39,345,000 $7,310,375 $46,655,375 $108,000,000 $23,949,526 $131,949,526 $46,800,000 $6,734,774 $53,534,774 $232,139,675 [1] Future Debt Service Assumptions Provided By the City's Financial Advisor Wastewater Revenue Refunding Bonds,
2014 Revenue Bond
Regional Wastewater Facility Modification -
N18126CA WIFIA Loan Regional Wastewater Control Facilities (SRF)
DRAFT ATTACHMENT A
City of Stockton Page 1 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Residential
Single Family & Condo
Base Charge $ / Acct.
City Customer $55.68 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 Non-City Customer 50.77 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------- Total 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 Consumption Charge $ / CCF
Monthly Consumption $0.00 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Special District Single Family & Condo
Base Charge
Single Family $50.77 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 Condo 50.77 59 59 59 59 59 59 59 59 59 59 59 59 59
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 Total Single Family & Condo Revenue $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $56,517,581 Multi-Family
Base Charge $ / Unit
City Customer $52.45 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 Non-City Customer 47.05 900 900 900 900 900 900 900 900 900 900 900 900 900 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 Consumption Charge $ / CCF
Monthly Consumption $0.00 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Special District Multi-Family
Base Charge $ / Acct.
Duplex $47.05 144 144 144 144 144 144 144 144 144 144 144 144 144 Triplex (and Fourplex) 47.05 96 96 96 96 96 96 96 96 96 96 96 96 96 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 240 240 240 240 240 240 240 240 240 240 240 240 240
Total Multi-Family Revenue $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $5,441,560 Apartments
Base Charge $ / Unit
City Customer $47.57 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 Non-City Customer 41.75 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 Consumption Charge $ / CCF
Monthly Consumption $0.00 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Special District Apartments
Base Charge $ / Acct.
Apartment $41.75 400 400 400 400 400 400 400 400 400 400 400 400 400 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 400 400 400 400 400 400 400 400 400 400 400 400 400
Total Apartments Revenue $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $16,384,198 Total Residential Revenue $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $78,343,339
DRAFT ATTACHMENT A
City of Stockton Page 2 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Commercial/Institutional
Special District Billing
Minimum Bill $50.77 100 100 100 100 100 100 100 100 100 100 100 100 100 Base 23.56 81 81 81 81 81 81 81 81 81 81 81 81 81
Food Handling (HCF) 4.54 820 820 820 820 820 820 820 820 820 820 820 820 9,840 Commercial (HCF) 2.70 811 811 811 811 811 811 811 811 811 811 811 811 9,732 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------------- Total Revenues $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $154,774 Low Strength
Base Charge $ / Acct.
City Customer $26.83 205 205 205 205 205 205 205 205 205 205 205 205 205 Non-City Customer 23.56 1 1 1 1 1 1 1 1 1 1 1 1 1
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 206 206 206 206 206 206 206 206 206 206 206 206 206 Consumption Charge $ / CCF
City Customer $2.22 11,295 11,295 11,295 12,177 11,397 11,254 11,254 11,254 11,254 11,254 11,254 11,254 136,240 Non-City Customer 2.22 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 11,295 11,295 11,295 12,177 11,397 11,254 11,254 11,254 11,254 11,254 11,254 11,254 136,240 Total Revenue $30,599 $30,599 $30,599 $32,557 $30,825 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $368,738 Medium Strength
Base Charge $ / Acct.
City Customer $26.83 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 Non-City Customer 23.56 45 45 45 45 45 45 45 45 45 45 45 45 45 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 Consumption Charge $ / CCF
City Customer $2.70 111,740 110,872 110,812 116,298 112,745 111,284 114,905 110,170 114,121 110,416 110,304 131,635 1,365,300 Non-City Customer 2.70 0 0 0 0 0 0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------- Total 111,740 110,872 110,812 116,298 112,745 111,284 114,905 110,170 114,121 110,416 110,304 131,635 1,365,300 Total Revenue $387,970 $385,627 $385,464
DRAFT
$400,276 $390,683 $386,739 $396,515 $383,731 $394,398 $384,395 $384,094 $441,686 $4,721,578
ATTACHMENT A
City of Stockton Page 3 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total High Strength
Base Charge $ / Acct.
City Customer $26.83 404 404 404 404 404 404 404 404 404 404 404 404 404 Non-City Customer 23.56 4 4 4 4 4 4 4 4 4 4 4 4 4
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 408 408 408 408 408 408 408 408 408 408 408 408 408 Consumption Charge $ / CCF
City Customer $4.54 30,014 30,066 29,715 30,027 33,576 30,189 29,903 30,121 29,728 29,728 29,424 39,574 372,064 Non-City Customer 4.54 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 30,014 30,066 29,715 30,027 33,576 30,189 29,903 30,121 29,728 29,728 29,424 39,574 372,064 Total Revenue $147,197 $147,433 $145,837 $147,256 $163,368 $147,990 $146,694 $147,683 $145,897 $145,897 $144,520 $190,599 $1,820,372 Schools
Base Charge $ / Acct.
City Customer $26.83 92 92 92 92 92 92 92 92 92 92 92 92 92 Non-City Customer 23.56 0 0 0 0 0 0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 92 92 92 92 92 92 92 92 92 92 92 92 92
Avg Daily Attendance $ / ADA
City Customer $1.30 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 Non-City Customer 1.30 0 0 0 0 0 0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 Total Revenue $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $923,703 Total Com / Ind Revenue $642,741 $640,635 $638,876 $657,064 $661,852 $642,213 $650,693 $638,897 $647,779 $637,775 $636,097 $739,768 $7,834,391
DRAFT ATTACHMENT A
City of Stockton Page 4 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Industrial
Admin / Stand-by Charges $ / Acct.
Base Charge $26.83 24 26 26 26 26 26 26 26 26 26 26 26 26 Flow $ / MG
Monthly Consumption $864.80 128.97 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 1,828.14 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------- Total 128.97 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 1,828.14 BOD $ / 1,000 lbs
Monthly Consumption $140.13 796.31 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 849.39 10,009.60 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- Total 796.31 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 849.39 10,009.60 SS $ / 1,000 lbs
Monthly Consumption $102.88 412.38 448.08 585.74 448.08 448.08 448.08 448.16 448.08 448.08 448.08 448.08 448.08 5,479.00 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------- Total 412.38 448.08 585.74 448.08 448.08 448.08 448.16 448.08 448.08 448.08 448.08 448.08 5,479.00 O&M (Consumption) Charges
Flow $ / MG
Monthly Consumption $748.52 85.68 100.90 99.45 69.56 54.08 56.53 75.77 55.83 70.21 56.86 62.22 57.76 844.85 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total 85.68 100.90 99.45 69.56 54.08 56.53 75.77 55.83 70.21 56.86 62.22 57.76 844.85 BOD $ / 1,000 lbs
Monthly Consumption $52.14 264.49 363.89 303.21 167.36 159.23 158.52 166.26 143.95 200.50 156.98 172.69 226.63 2,483.71 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- Total 264.49 363.89 303.21 167.36 159.23 158.52 166.26 143.95 200.50 156.98 172.69 226.63 2,483.71 SS $ / 1,000 lbs
Monthly Consumption $83.45 96.09 156.59 407.86 136.14 40.48 43.97 41.89 37.84 55.83 42.47 47.25 57.80 1,164.21 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- Total 96.09 156.59 407.86 136.14 40.48 43.97 41.89 37.84 55.83 42.47 47.25 57.80 1,164.21 Special Customer (flow only)
Low $1.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Medium 2.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Industrial Revenue $352,132 $405,151 $436,033
DRAFT
$369,739 $349,745 $351,833 $366,473 $350,038 $365,252 $351,875 $357,105 $359,281 $4,414,659
ATTACHMENT A
City of Stockton Page 5 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Summary
Number of Customers
Residential
Single Family & Condo 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 Multi-Family 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 Apartments 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 Commercial/Institutional
Low Strength 206 206 206 206 206 206 206 206 206 206 206 206 206 Medium Strength 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 High Strength 449 449 449 449 449 449 449 449 449 449 449 449 449 Schools 92 92 92 92 92 92 92 92 92 92 92 92 92
Industrial 24 26 26 26 26 26 26 26 26 26 26 26 26
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Number of Customers 128,494 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 Consumption (CCF)
Residential
Single Family & Condo 0 0 0 0 0 0 0 0 0 0 0 0 0
Multi-Family 0 0 0 0 0 0 0 0 0 0 0 0 0
Apartments 0 0 0 0 0 0 0 0 0 0 0 0 0
Commercial/Institutional
Low Strength 11,295 11,295 11,295 12,177 11,397 11,254 11,254 11,254 11,254 11,254 11,254 11,254 136,240 Medium Strength 112,551 111,683 111,623 117,109 113,556 112,095 115,716 110,981 114,932 111,227 111,115 132,446 1,375,032 High Strength 30,834 30,886 30,535 30,847 34,396 31,009 30,723 30,941 30,548 30,548 30,244 40,394 381,904 Schools 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 687,756 Industrial 114,545 134,893 132,955 92,995 72,299 75,575 101,297 74,639 93,864 76,016 83,182 77,219 1,129,479 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- Total Consumption 326,539 346,070 343,720 310,440 288,961 287,246 316,303 285,128 307,910 286,358 293,109 318,626 3,710,411 Revenues
Residential
Single Family & Condo $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $56,578,505 Multi-Family 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 5,441,560 Apartments 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 16,384,198 Commercial/Institutional
Low Strength $30,599 $30,599 $30,599 $32,557 $30,825 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $368,738 Medium Strength 391,108 388,765 388,603 403,415 393,822 389,878 399,654 386,869 397,537 387,533 387,232 444,824 4,759,241 High Strength 151,879 152,116 150,520 151,938 168,050 152,673 151,376 152,365 150,579 150,579 149,202 195,282 1,876,559 Schools 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 923,703 Industrial 352,132 405,151 436,033 369,739 349,745 351,833 366,473 350,038 365,252 351,875 357,105 359,281 4,414,659 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- Total Revenues $7,536,383 $7,587,296 $7,616,419 $7,568,313 $7,553,107 $7,535,556 $7,558,675 $7,530,445 $7,554,540 $7,531,160 $7,534,712 $7,640,559 $90,747,163 FY 2023-24 Budget $91,277,821
Difference ($530,658)
Percent -0.6%
FY 2023-24 Projected $88,200,000
Difference $2,547,163
Percent 2.9%
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Development of Volume Distribution Factor
Exhibit 7
0.0% Total Annual Avg. Daily
Annual flow Inflow and Flow at Plant Flow At % of
in HCF Infiltration (HCF) Plant (MGD) Total
Residential
Single Family & Condo 9,109,792 0 9,109,792 18.67 62.5% Multi-Family 790,216 0 790,216 1.62 5.4%
Apartments 1,981,849 0 1,981,849 4.06 13.6%
Commercial/Institutional
Low Strength 95,368 0 95,368 0.20 0.7%
Medium Strength 969,335 0 969,335 1.99 6.6%
High Strength 352,569 0 352,569 0.72 2.4%
Schools 261,491 0 261,491 0.54 1.8%
Industrial 1,016,531 0 1,016,531 2.08 7.0%
--------------- --------------- --------- ----------
Total 14,577,151 14,577,151 29.87 100.0%
Actual Flows [1] 13,349,989 27.36
Distribution Factor (VOL)
Notes
[1] - Provided by the City based on influent monthly averages for 2022-23
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Development of the Strength Distribution Factor
Exhibit 8
Annual Flow Avg. Factor Calculated % of Avg. Factor Calculated % of (HCF) (mg/l) Pounds Total (mg/l) Pounds Total
Residential
Single Family & Condo 9,109,792 275 42,817 56.5% 390 60,722 58.3% Multi-Family 790,216 275 3,714 4.9% 390 5,267 5.1%
Apartments 1,981,849 275 9,315 12.3% 390 13,210 12.7%
Commercial/Institutional
Low Strength 95,368 275 448 0.6% 390 636 0.6%
Medium Strength 969,335 360 5,964 7.9% 475 7,869 7.6%
High Strength 352,569 525 3,164 4.2% 625 3,766 3.6%
Schools 261,491 275 1,229 1.6% 390 1,743 1.7%
Industrial 1,016,531 525 9,121 12.0% 625 10,859 10.4%
---------------- --------------- ----------- --------------- ----------- Total 14,577,151 75,772 100.0% 104,073 100.0%
Actual pounds [2] 304 76,554 418 107,410
Distribution Factor (CBOD) (SS)
Notes
[1] - Based on estimated values from City treatment data and industry standard strength levels [2] - Provided by the City based on influent monthly averages for 2022-23 Carbonaceous Biochemical Oxygen Demand [1] Suspended Solids [1]
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Development of the Customer Distribution Factor
Exhibit 9
Number of % of Number of Weighting Weighted % of
Accounts Total Bills Factor Customer Total
Residential
Single Family & Condo 85,480 66.5% 85,480 1.0 85,480 66.5% Multi-Family 8,763 6.8% 8,763 1.0 8,763 6.8%
Apartments 30,219 23.5% 30,219 1.0 30,219 23.5%
Commercial/Institutional
Low Strength 206 0.2% 206 1.0 206 0.2%
Medium Strength 3,261 2.5% 3,261 1.0 3,261 2.5%
High Strength 449 0.3% 449 1.0 449 0.3%
Schools 92 0.1% 92 1.0 92 0.1%
Industrial 26 0.0% 26 1.0 26 0.0%
-------------- ---------- ------------- ------------- ---------- Total 128,496 100.0% 128,496 128,496 100.0%
Distribution Factor (AC) (WCA)
Notes
Actual Customer Customer Service & Accounting
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Development of the Revenue Related Allocation Factor
Exhibit 10
Revenue
FY 2024-25 % of Total
Residential
ngle Family & Condo Single Family & Condo $57,144,290 62.3% ulti-Family Multi-Family 5,495,976 6.0%
partments Apartments 16,548,040 18.1%
Commercial/Institutional
w Strength Low Strength $372,425 0.4%
edium StrengthMedium Strength 4,806,833 5.2%
gh Strength High Strength 1,895,325 2.1%
Schools 932,940 1.0%
Industrial 4,458,805 4.9%
---------------- ------------
Total $91,654,635 100.0%
Distribution Factor (RR)
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Functionalization and Classification
Exhibit 11.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Volume Oxygen Demand Solids Customer Accounting Related Assign.
Net Plant (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Treatment
Headworks $410,048 $410,048 $0 $0 $0 $0 $0 $0 100.0% VOL Bar Screen 25,283 25,283 0 0 0 0 0 0 100.0% VOL
Sedimentation Tanks 150,789 0 45,237 105,552 0 0 0 0 70.0% SS 30.0% CBOD Buildings 4,600,889 348,709 1,545,114 2,707,066 0 0 0 0 As All Other Treatment Plant Trickling Filter 761,631 0 761,631 0 0 0 0 0 100.0% CBOD Fan Pit 15,756 7,878 3,939 3,939 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Sludge Lagoon 144,046 0 72,023 72,023 0 0 0 0 50.0% CBOD 50.0% SS Digester 1,786,821 0 536,046 1,250,775 0 0 0 0 30.0% CBOD 70.0% SS Pumping 221,111 221,111 0 0 0 0 0 0 100.0% VOL
Oxidation Pond 215,659 0 215,659 0 0 0 0 0 100.0% CBOD
Tanks 5,922 2,961 1,480 1,480 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Vaporizer 6,363 3,182 1,591 1,591 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Tertiary 1,580,325 790,163 395,081 395,081 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Chlorine Contact Canal 188,359 94,179 47,090 47,090 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Sludge Processing Facility 15,294,173 0 4,588,252 10,705,921 0 0 0 0 30.0% CBOD 70.0% SS DAF Thickeners 1,543,370 0 771,685 771,685 0 0 0 0 50.0% CBOD 50.0% SS Cogen 442,624 0 221,312 221,312 0 0 0 0 50.0% CBOD 50.0% SS Biotower 87,658 87,658 0 0 0 0 0 0 100.0% VOL
Peroxide Station 63,612 0 63,612 0 0 0 0 0 100.0% CBOD
Dual Feed System 227,399 113,700 56,850 56,850 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS RWCF Expansion
Secondary Treatment 71,100,000 1,600,000 60,820,000 8,680,000 0 0 0 0 2.3% VOL 85.5% CBOD 12.2% TSS Preliminary Treatment 51,200,000 29,350,000 660,000 21,190,000 0 0 0 0 57.3% VOL 1.3% CBOD 41.4% SS Personnel Building 29,500,000 0 0 0 29,500,000 0 0 0 100.0% AC Plant Operations 27,800,000 26,733,333 533,333 533,333 0 0 0 0 96.2% VOL 1.9% CBOD 1.9% SS Solids Handling 10,700,000 0 2,675,000 8,025,000 0 0 0 0 25.0% CBOD 75.0% SS Tertiary 52,500,000 24,525,000 1,475,000 26,500,000 0 0 0 0 46.7% VOL 2.8% CBOD 50.5% SS ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Treatment $270,571,838 $84,313,204 $75,489,935 $81,268,699 $29,500,000 $0 $0 $0 100.0% 31.2% 27.9% 30.0% 10.9% 0.0% 0.0% 0.0%
Collection
Land $1,106,917 $0 $0 $0 $1,106,917 $0 $0 $0 100.0% AC
Pump Station 5,508,855 5,508,855 0 0 0 0 0 0 100.0% VOL Sewer Lines 168,969,243 143,623,857 0 0 25,345,386 0 0 0 85.0% VOL 15.0% AC ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Collection $175,585,015 $149,132,712 $0 $0 $26,452,303 $0 $0 $0 100.0% 84.9% 0.0% 0.0% 15.1% 0.0% 0.0% 0.0%
Total Plant Before General $446,156,853 $233,445,916 $75,489,935 $81,268,699 $55,952,303 $0 $0 $0 General Plant
Equipment $8,075,786 $0 $0 $0 $8,075,786 $0 $0 $0 100.0% AC Buildings 1,151,322 0 0 0 1,151,322 0 0 0 100.0% AC
Paving 1,819,988 0 0 0 1,819,988 0 0 0 100.0% AC
Lighting 51,508 0 0 0 51,508 0 0 0 100.0% AC
Yard Improvements 128,835 0 0 0 128,835 0 0 0 100.0% AC Piping 151,098 0 0 0 151,098 0 0 0 100.0% AC
Fencing 36,032 0 0 0 36,032 0 0 0 100.0% AC
Stockton Channel Water Quality 1,350,102 0 0 0 1,350,102 0 0 0 100.0% AC ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total General Plant $12,764,672 $0 $0 $0 $12,764,672 $0 $0 $0 Net Plant in Service $458,921,526 $233,445,916 $75,489,935 $81,268,699 $68,716,976 $0 $0 $0 Strength Related
Customer Related
Basis of Classification
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 1 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Utility Billing
Employee Services
Utility BillingSalaries - Regular Salaries - Regular $1,050,049 $0 $0 $0 $1,050,049 $0 $0 $0 100.0% AC Utility BillingSalaries - Part Time/Temp Salaries - Part Time/Temp 21,036 0 0 0 21,036 0 0 0 100.0% AC Utility BillingRegular Overtime Regular Overtime 21,036 0 0 0 21,036 0 0 0 100.0% AC Utility BillingEmployee Separation Pay Employee Separation Pay 12,978 0 0 0 12,978 0 0 0 100.0% AC Utility BillingAdditional Pay Additional Pay 0 0 0 0 0 0 0 0 100.0% AC Utility BillingRetirement Retirement 304,138 0 0 0 304,138 0 0 0 100.0% AC Utility BillingMedicare Medicare 16,359 0 0 0 16,359 0 0 0 100.0% AC Utility BillingHealth/Dental/Vision Health/Dental/Vision 266,112 0 0 0 266,112 0 0 0 100.0% AC Utility BillingL/T Disability Insurance L/T Disability Insurance 6,618 0 0 0 6,618 0 0 0 100.0% AC Utility BillingLife Insurance Life Insurance 968 0 0 0 968 0 0 0 100.0% AC Utility BillingWorkers Compensation Workers Compensation 33,979 0 0 0 33,979 0 0 0 100.0% AC Utility BillingUnemployment Insurance Unemployment Insurance 1,166 0 0 0 1,166 0 0 0 100.0% AC Utility BillingCell Phone Allowance Cell Phone Allowance 1,407 0 0 0 1,407 0 0 0 100.0% AC Utility BillingRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 100.0% AC Utility BillingVacation Sell Back Vacation Sell Back 2,141 0 0 0 2,141 0 0 0 100.0% AC Utility Billing ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Employee Services Total Employee Services $1,737,987 $0 $0 $0 $1,737,987 $0 $0 $0 Other Services
Utility BillingContractual Employees Contractual Employees $25,250 $0 $0 $0 $25,250 $0 $0 $0 100.0% AC Utility BillingMaint. & Repair Services Maint. & Repair Services 6,165 0 0 0 6,165 0 0 0 100.0% AC Utility BillingDuplication/Copy Costs Duplication/Copy Costs 12,726 0 0 0 12,726 0 0 0 100.0% AC Utility BillingInsurance Premiums Insurance Premiums 115,394 0 0 0 115,394 0 0 0 100.0% AC Utility BillingAutomotive Equip Rental Automotive Equip Rental 0 0 0 0 0 0 0 0 100.0% AC Utility BillingComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 110,187 0 0 0 110,187 0 0 0 100.0% AC Utility BillingTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC Utility BillingPublicity & Advertising Publicity & Advertising 2,398 0 0 0 2,398 0 0 0 100.0% AC Utility BillingPrinting & Mapping Printing & Mapping 86,577 0 0 0 86,577 0 0 0 100.0% AC Utility BillingPostage/Mailing Services Postage/Mailing Services 470,321 0 0 0 470,321 0 0 0 100.0% AC Utility BillingProcessing Fees Processing Fees 88,327 0 0 0 88,327 0 0 0 100.0% AC Utility BillingComputer/Programming Svcs Computer/Programming Svcs 3,333 0 0 0 3,333 0 0 0 100.0% AC Utility BillingOther Services Other Services 707,000 0 0 0 707,000 0 0 0 100.0% AC Utility Billing --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Utility BillingTotal Other Services Total Other Services $1,627,678 $0 $0 $0 $1,627,678 $0 $0 $0 Materials & Supplies
Utility BillingMaterials and Supplies Materials and Supplies $20,200 $0 $0 $0 $20,200 $0 $0 $0 100.0% AC Utility BillingComputer Software Computer Software 1,611 0 0 0 1,611 0 0 0 100.0% AC Utility BillingFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 30,705 0 0 0 30,705 0 0 0 100.0% AC Utility Billing --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Utility BillingTotal Materials & Supplies Total Materials & Supplies $52,516 $0 $0 $0 $52,516 $0 $0 $0 Utility Billing
Other Expenses
Utility BillingTraining Training $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Utility BillingMeetings & Travel Meetings & Travel 1,515 0 0 0 1,515 0 0 0 100.0% AC Utility BillingMemberships Memberships 606 0 0 0 606 0 0 0 100.0% AC Utility BillingCar Mileage Reimbursement Car Mileage Reimbursement 606 0 0 0 606 0 0 0 100.0% AC Utility BillingCollection Costs Collection Costs 46,035 0 0 0 46,035 0 0 0 100.0% AC Utility BillingTelephone Telephone 909 0 0 0 909 0 0 0 100.0% AC Utility BillingTraining Services Training Services 9,090 0 0 0 9,090 0 0 0 100.0% AC Utility BillingSettlement Payments Settlement Payments 81,388 0 0 0 81,388 0 0 0 100.0% AC Utility Billing --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Utility BillingTotal Other Expenses Total Other Expenses $140,149 $0 $0 $0 $140,149 $0 $0 $0 Total Utility Billing Expenses $3,558,330 $0 $0 $0 $3,558,330 $0 $0 $0 Strength Related
Basis of Classification
Customer Related
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 2 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Administration
Employee Services
AdministrationSalaries - Regular Salaries - Regular $793,842 $0 $0 $0 $793,842 $0 $0 $0 100.0% AC AdministrationSalaries - Part Time/Temp Salaries - Part Time/Temp 0 0 0 0 0 0 0 0 100.0% AC AdministrationRegular Overtime Regular Overtime 31,500 0 0 0 31,500 0 0 0 100.0% AC AdministrationEmployee Separation Pay Employee Separation Pay 9,811 0 0 0 9,811 0 0 0 100.0% AC AdministrationAdditional Pay Additional Pay 4,289 0 0 0 4,289 0 0 0 100.0% AC AdministrationRetirement Retirement 227,067 0 0 0 227,067 0 0 0 100.0% AC AdministrationMedicare Medicare 12,227 0 0 0 12,227 0 0 0 100.0% AC AdministrationHealth/Dental/Vision Health/Dental/Vision 137,592 0 0 0 137,592 0 0 0 100.0% AC AdministrationL/T Disability Insurance L/T Disability Insurance 5,018 0 0 0 5,018 0 0 0 100.0% AC AdministrationLife Insurance Life Insurance 529 0 0 0 529 0 0 0 100.0% AC AdministrationWorkers Compensation Workers Compensation 24,161 0 0 0 24,161 0 0 0 100.0% AC AdministrationUnemployment Insurance Unemployment Insurance 861 0 0 0 861 0 0 0 100.0% AC AdministrationCell Phone Allowance Cell Phone Allowance 2,079 0 0 0 2,079 0 0 0 100.0% AC AdministrationRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Employee Services Total Employee Services $1,248,976 $0 $0 $0 $1,248,976 $0 $0 $0 Administration
Other Services
AdministrationTelephone Telephone $12,663 $0 $0 $0 $12,663 $0 $0 $0 100.0% AC AdministrationComputer/Tech/Operation Support Computer/Tech/Operation Support 53,574 0 0 0 53,574 0 0 0 100.0% AC AdministrationRadio Equipment Rental Radio Equipment Rental 1,649 0 0 0 1,649 0 0 0 100.0% AC AdministrationOther Rentals Other Rentals 1,846,980 0 0 0 1,846,980 0 0 0 100.0% AC AdministrationTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC AdministrationWater Water 0 0 0 0 0 0 0 0 100.0% AC
AdministrationStorm Water Storm Water 0 0 0 0 0 0 0 0 100.0% AC AdministrationMaint. & Repair Services Maint. & Repair Services 6,300 0 0 0 6,300 0 0 0 100.0% AC AdministrationUniform/Laundry Services Uniform/Laundry Services 1,890 0 0 0 1,890 0 0 0 100.0% AC AdministrationDuplication/Copy Costs Duplication/Copy Costs 630 0 0 0 630 0 0 0 100.0% AC AdministrationInsurance Premiums Insurance Premiums 86,390 0 0 0 86,390 0 0 0 100.0% AC AdministrationAutomotive Equip Rental Automotive Equip Rental 14,158 0 0 0 14,158 0 0 0 100.0% AC AdministrationPublicity & Advertising Publicity & Advertising 945 0 0 0 945 0 0 0 100.0% AC AdministrationPostage/Mailing Services Postage/Mailing Services 63 0 0 0 63 0 0 0 100.0% AC AdministrationProcessing Fees Processing Fees 7,500 0 0 0 7,500 0 0 0 100.0% AC AdministrationLegal Services Legal Services 0 0 0 0 0 0 0 0 100.0% AC AdministrationTraining Services Training Services 9,450 0 0 0 9,450 0 0 0 100.0% AC AdministrationProf & Special Services Prof & Special Services 87,255 0 0 0 87,255 0 0 0 100.0% AC AdministrationOther Services Other Services 0 0 0 0 0 0 0 0 100.0% AC AdministrationTesting and Analysis Services Testing and Analysis Services 315 0 0 0 315 0 0 0 100.0% AC AdministrationRecoverable Legal Expense Recoverable Legal Expense 31,500 0 0 0 31,500 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Other Services Total Other Services $2,161,262 $0 $0 $0 $2,161,262 $0 $0 $0 Administration
Materials & Supplies
AdministrationMaterials and Supplies Materials and Supplies $18,900 $0 $0 $0 $18,900 $0 $0 $0 100.0% AC AdministrationComputer Software Computer Software 0 0 0 0 0 0 0 0 100.0% AC AdministrationFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 0 0 0 0 0 0 0 0 100.0% AC AdministrationNon-Capital Assets Non-Capital Assets 15,750 0 0 0 15,750 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Materials & Supplies Total Materials & Supplies $34,650 $0 $0 $0 $34,650 $0 $0 $0 Administration
Other Expenses
AdministrationTraining Training $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC AdministrationMeetings & Travel Meetings & Travel 630 0 0 0 630 0 0 0 100.0% AC AdministrationMemberships Memberships 756 0 0 0 756 0 0 0 100.0% AC AdministrationIndirect Cost Allocation Indirect Cost Allocation 1,413,232 0 0 0 1,413,232 0 0 0 100.0% AC AdministrationCar Mileage Reimbursement Car Mileage Reimbursement 630 0 0 0 630 0 0 0 100.0% AC AdministrationSettlement Payments Settlement Payments 28,068 0 0 0 28,068 0 0 0 100.0% AC AdministrationVehicle Acquisition Vehicle Acquisition 31,500 0 0 0 31,500 0 0 0 100.0% AC AdministrationEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Other Expenses Total Other Expenses $1,474,816 $0 $0 $0 $1,474,816 $0 $0 $0 Administration
Total Administration
DRAFT
$4,919,704 $0 $0 $0 $4,919,704 $0 $0 $0
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 3 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Engineering Services
Employee Services
Engineering ServicesSalaries - Regular Salaries - Regular $1,183,613 $0 $0 $0 $1,183,613 $0 $0 $0 100.0% AC Engineering ServicesEmployee Separation Pay Employee Separation Pay 14,628 0 0 0 14,628 0 0 0 100.0% AC Engineering ServicesRetirement Retirement 338,273 0 0 0 338,273 0 0 0 100.0% AC Engineering ServicesMedicare Medicare 17,519 0 0 0 17,519 0 0 0 100.0% AC Engineering ServicesHealth/Dental/Vision Health/Dental/Vision 171,360 0 0 0 171,360 0 0 0 100.0% AC Engineering ServicesL/T Disability Insurance L/T Disability Insurance 7,455 0 0 0 7,455 0 0 0 100.0% AC Engineering ServicesLife Insurance Life Insurance 680 0 0 0 680 0 0 0 100.0% AC Engineering ServicesWorkers Compensation Workers Compensation 27,177 0 0 0 27,177 0 0 0 100.0% AC Engineering ServicesCell Phone Allowance Cell Phone Allowance 1,680 0 0 0 1,680 0 0 0 100.0% AC Engineering ServicesRegular Overtime Regular Overtime 3,500 0 0 0 3,500 0 0 0 100.0% AC Engineering ServicesAdditional Pay Additional Pay 5,390 0 0 0 5,390 0 0 0 100.0% AC Engineering ServicesUnemployment Insurance Unemployment Insurance 1,214 0 0 0 1,214 0 0 0 100.0% AC Engineering ServicesRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesVacation Sell Back Vacation Sell Back 2,414 0 0 0 2,414 0 0 0 100.0% AC --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Employee Services Total Employee Services $1,774,903 $0 $0 $0 $1,774,903 $0 $0 $0 Engineering Services
Other Services
Engineering ServicesTelephone Telephone $2,800 $0 $0 $0 $2,800 $0 $0 $0 100.0% AC Engineering ServicesMaintenance & Repair Services Maintenance & Repair Services 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesDuplication/Copy Costs Duplication/Copy Costs 1,400 0 0 0 1,400 0 0 0 100.0% AC Engineering ServicesInsurance Premiums Insurance Premiums 124,341 0 0 0 124,341 0 0 0 100.0% AC Engineering ServicesAutomotive Equipment Rental Automotive Equipment Rental 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesComputer/Tech/Operation Support Computer/Tech/Operation Support 120,658 0 0 0 120,658 0 0 0 100.0% AC Engineering ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesPublicity & Advertising Publicity & Advertising 2,100 0 0 0 2,100 0 0 0 100.0% AC Engineering ServicesPrinting & Mapping Printing & Mapping 38,500 0 0 0 38,500 0 0 0 100.0% AC Engineering ServicesPostage/Mailing Services Postage/Mailing Services 350 0 0 0 350 0 0 0 100.0% AC Engineering ServicesProcessing Fees Processing Fees 770 0 0 0 770 0 0 0 100.0% AC Engineering ServicesUniform/Laundry Services Uniform/Laundry Services 560 0 0 0 560 0 0 0 100.0% AC Engineering ServicesOther Services Other Services 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesTesting and Analysis Services Testing and Analysis Services 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesProfessional and Special Services Professional and Special Services 280,000 0 0 0 280,000 0 0 0 100.0% AC Engineering ServicesRadio Equipment Rental Radio Equipment Rental 960 0 0 0 960 0 0 0 100.0% AC Engineering Services --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Other Services Total Other Services $572,439 $0 $0 $0 $572,439 $0 $0 $0 Engineering Services
Materials & Supplies
Engineering ServicesMaterials & Supplies Materials & Supplies $10,500 $0 $0 $0 $10,500 $0 $0 $0 100.0% AC Engineering ServicesComputer Software Computer Software 14,000 0 0 0 14,000 0 0 0 100.0% AC Engineering ServicesSubscription - Periodical Subscription - Periodical 350 0 0 0 350 0 0 0 100.0% AC Engineering ServicesFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 832 0 0 0 832 0 0 0 100.0% AC Engineering ServicesLibrary Materials Library Materials 3,500 0 0 0 3,500 0 0 0 100.0% AC Engineering ServicesNon-Capital Assets Non-Capital Assets 10,500 0 0 0 10,500 0 0 0 100.0% AC Engineering Services --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Materials & Supplies Total Materials & Supplies $39,682 $0 $0 $0 $39,682 $0 $0 $0 Other Expenses
Engineering ServicesTraining Training $7,000 $0 $0 $0 $7,000 $0 $0 $0 100.0% AC Engineering ServicesMeetings & Travel Meetings & Travel 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesMemberships Memberships 1,750 0 0 0 1,750 0 0 0 100.0% AC Engineering ServicesCar Mileage Reimbursement Car Mileage Reimbursement 70 0 0 0 70 0 0 0 100.0% AC Engineering ServicesVehicle Acquisition Vehicle Acquisition 61,250 0 0 0 61,250 0 0 0 100.0% AC Engineering ServicesSettlement Payments Settlement Payments 41,816 0 0 0 41,816 0 0 0 100.0% AC Engineering Services --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Other Expenses Total Other Expenses $111,886 $0 $0 $0 $111,886 $0 $0 $0 Total Engineering Services $2,498,910 $0 $0 $0 $2,498,910 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 4 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Treatment Operations
Employee Services
Treatment OperationsSalaries - Regular Salaries - Regular $2,411,498 $751,450 $672,811 $724,315 $262,922 $0 $0 $0 As Treatment Plant Treatment OperationsSalaries Part Time - Temp Salaries Part Time - Temp 48,000 14,957 13,392 14,417 5,233 0 0 0 As Treatment Plant Treatment OperationsRegular Overtime Regular Overtime 450,000 140,225 125,551 135,162 49,063 0 0 0 As Treatment Plant Treatment OperationsStand By Time (Call Back) Stand By Time (Call Back) 20,040 6,245 5,591 6,019 2,185 0 0 0 As Treatment Plant Treatment OperationsHoliday Pay Holiday Pay 93,000 28,980 25,947 27,933 10,140 0 0 0 As Treatment Plant Treatment OperationsEmployee Separation Pay Employee Separation Pay 29,804 9,287 8,315 8,952 3,249 0 0 0 As Treatment Plant Treatment OperationsAdditional Pay Additional Pay 12,000 3,739 3,348 3,604 1,308 0 0 0 As Treatment Plant Treatment OperationsRetirement Retirement 716,498 223,269 199,904 215,207 78,119 0 0 0 As Treatment Plant Treatment OperationsDeferred Compensation Deferred Compensation 110,020 34,283 30,696 33,046 11,995 0 0 0 As Treatment Plant Treatment OperationsMedicare Medicare 44,041 13,724 12,288 13,228 4,802 0 0 0 As Treatment Plant Treatment OperationsHealth/Dental/Vision Health/Dental/Vision 494,760 154,173 138,039 148,606 53,943 0 0 0 As Treatment Plant Treatment OperationsL/T Disability Insurance L/T Disability Insurance 15,212 4,740 4,244 4,569 1,659 0 0 0 As Treatment Plant Treatment OperationsLife Insurance Life Insurance 2,110 657 589 634 230 0 0 0 As Treatment Plant Treatment OperationsWorkers Compensation Workers Compensation 159,989 49,854 44,637 48,054 17,443 0 0 0 As Treatment Plant Treatment OperationsUnemployment Insurance Unemployment Insurance 3,276 1,021 914 984 357 0 0 0 As Treatment Plant Treatment OperationsCell Phone Allowance Cell Phone Allowance 3,660 1,140 1,021 1,099 399 0 0 0 As Treatment Plant Treatment OperationsVacation Sell Back Vacation Sell Back 1,619 504 452 486 177 0 0 0 As Treatment Plant Treatment Operations ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Employee Services Total Employee Services $4,615,527 $1,438,250 $1,287,739 $1,386,315 $503,223 $0 $0 $0 Treatment Operations
Other Services
Treatment OperationsElectricity Electricity $6,245,288 $1,946,101 $1,742,444 $1,875,829 $680,913 $0 $0 $0 As Treatment Plant Treatment OperationsGas Gas 417,360 130,054 116,444 125,358 45,504 0 0 0 As Treatment Plant Treatment OperationsWater Water 475,000 148,015 132,526 142,671 51,788 0 0 0 As Treatment Plant Treatment OperationsTelephone Telephone 69,000 21,501 19,251 20,725 7,523 0 0 0 As Treatment Plant Treatment OperationsStormwater Stormwater 31,000 9,660 8,649 9,311 3,380 0 0 0 As Treatment Plant Treatment OperationsMaintenance & Repair Services Maintenance & Repair Services 2,000,000 623,222 558,003 600,718 218,057 0 0 0 As Treatment Plant Treatment OperationsUniform/Laundry Services Uniform/Laundry Services 50,000 15,581 13,950 15,018 5,451 0 0 0 As Treatment Plant Treatment OperationsDuplication/Copy Costs Duplication/Copy Costs 2,000 623 558 601 218 0 0 0 As Treatment Plant Treatment OperationsInsurance Premiums Insurance Premiums 304,092 94,758 84,842 91,337 33,155 0 0 0 As Treatment Plant Treatment OperationsAutomotive Equipment Rental Automotive Equipment Rental 47,480 14,795 13,247 14,261 5,177 0 0 0 As Treatment Plant Treatment OperationsComputer/Tech/Operation Support Computer/Tech/Operation Support 108,357 33,765 30,232 32,546 11,814 0 0 0 As Treatment Plant Treatment OperationsRadio Equipment Rental Radio Equipment Rental 26,624 8,296 7,428 7,997 2,903 0 0 0 As Treatment Plant Treatment OperationsOther Rentals Other Rentals 100,000 31,161 27,900 30,036 10,903 0 0 0 As Treatment Plant Treatment OperationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsPublicity & Advertising Publicity & Advertising 1,200 374 335 360 131 0 0 0 As Treatment Plant Treatment OperationsPostage/Mailing Services Postage/Mailing Services 500 156 140 150 55 0 0 0 As Treatment Plant Treatment OperationsProcessing Fees Processing Fees 708,000 220,621 197,533 212,654 77,192 0 0 0 As Treatment Plant Treatment OperationsTesting & Analysis Services Testing & Analysis Services 2,500 779 698 751 273 0 0 0 As Treatment Plant Treatment OperationsTraining Services Training Services 51,000 15,892 14,229 15,318 5,560 0 0 0 As Treatment Plant Treatment OperationsProfessional & Special Services Professional & Special Services 6,741,450 2,100,711 1,880,874 2,024,855 735,009 0 0 0 As Treatment Plant Treatment OperationsOther Services Other Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsLegal Services Legal Services 40,000 12,464 11,160 12,014 4,361 0 0 0 As Treatment Plant Treatment OperationsBuilding Repairs/Maint Building Repairs/Maint 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsSecurity & Alarm Services Security & Alarm Services 86,400 26,923 24,106 25,951 9,420 0 0 0 As Treatment Plant Treatment Operations ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Other Services Total Other Services $17,507,251 $5,455,455 $4,884,548 $5,258,461 $1,908,787 $0 $0 $0 Treatment Operations
Materials & Supplies
Treatment OperationsMaterials & Supplies Materials & Supplies $250,000 $77,903 $69,750 $75,090 $27,257 $0 $0 $0 As Treatment Plant Treatment OperationsComputer Software Computer Software 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment OperationsSubscription-Periodical Subscription-Periodical 500 156 140 150 55 0 0 0 As Treatment Plant Treatment OperationsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 33,588 10,467 9,371 10,089 3,662 0 0 0 As Treatment Plant Treatment OperationsChemicals Chemicals 8,500,000 0 4,250,000 4,250,000 0 0 0 0 50.0% CBOD 50.0% SS Treatment OperationsLibrary Materials Library Materials 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsNon-Capital Assets Non-Capital Assets 1,015,000 316,285 283,186 304,864 110,664 0 0 0 As Treatment Plant Treatment Operations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Materials & Supplies Total Materials & Supplies $9,800,088 $405,122 $4,612,727 $4,640,493 $141,746 $0 $0 $0 Treatment Operations
Other Expenses
Treatment OperationsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 As Treatment Plant Treatment OperationsMeetings & Travel Meetings & Travel 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment OperationsMemberships Memberships 150,000 46,742 41,850 45,054 16,354 0 0 0 As Treatment Plant Treatment OperationsTaxes Taxes 65,750 20,488 18,344 19,749 7,169 0 0 0 As Treatment Plant Treatment OperationsRetirement Expense Retirement Expense 289,303 90,150 80,716 86,895 31,542 0 0 0 As Treatment Plant Treatment OperationsCar Mileage Reimbursement Car Mileage Reimbursement 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment OperationsSettlement Payments Settlement Payments 85,298 26,580 23,798 25,620 9,300 0 0 0 As Treatment Plant Treatment OperationsVehicle Acquisition Vehicle Acquisition 282,500 88,030 78,818 84,851 30,801 0 0 0 As Treatment Plant Treatment OperationsEquipment Acquisition Equipment Acquisition 345,000 107,506 96,255 103,624 37,615 0 0 0 As Treatment Plant Treatment Operations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Other Expenses Total Other Expenses $1,219,851 $380,119 $340,340 $366,393 $132,998 $0 $0 $0 Treatment Operations
Total Treatment Operations $33,142,717 $7,678,946 $11,125,354 $11,651,663 $2,686,755 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 5 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Sanitary Sewer Collections
Employee Services
Sanitary Sewer CollectionsSalaries - Regular Salaries - Regular $2,999,402 $2,547,535 $0 $0 $451,867 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsRegular Overtime Regular Overtime 150,000 127,402 0 0 22,598 0 0 0 As Collection Plant Sanitary Sewer CollectionsStand By Time Stand By Time 40,000 33,974 0 0 6,026 0 0 0 As Collection Plant Sanitary Sewer CollectionsHoliday Pay Holiday Pay 6,500 5,521 0 0 979 0 0 0 As Collection Plant Sanitary Sewer CollectionsEmployee Separation Pay Employee Separation Pay 37,070 31,485 0 0 5,585 0 0 0 As Collection Plant Sanitary Sewer CollectionsAdditional Pay Additional Pay 34,925 29,663 0 0 5,262 0 0 0 As Collection Plant Sanitary Sewer CollectionsRetirement Retirement 858,100 728,825 0 0 129,275 0 0 0 As Collection Plant Sanitary Sewer CollectionsDeferred Compensation Deferred Compensation 148,674 126,276 0 0 22,398 0 0 0 As Collection Plant Sanitary Sewer CollectionsMedicare Medicare 46,864 39,804 0 0 7,060 0 0 0 As Collection Plant Sanitary Sewer CollectionsHealth/Dental/Vision Health/Dental/Vision 1,182,907 1,004,699 0 0 178,208 0 0 0 As Collection Plant Sanitary Sewer CollectionsL/T Disability Insurance L/T Disability Insurance 19,138 16,255 0 0 2,883 0 0 0 As Collection Plant Sanitary Sewer CollectionsLife Insurance Life Insurance 2,987 2,537 0 0 450 0 0 0 As Collection Plant Sanitary Sewer CollectionsWorkers Compensation Workers Compensation 210,825 179,064 0 0 31,761 0 0 0 As Collection Plant Sanitary Sewer CollectionsUnemployment Insurance Unemployment Insurance 3,310 2,811 0 0 499 0 0 0 As Collection Plant Sanitary Sewer CollectionsCell Phone Allowance Cell Phone Allowance 2,190 1,860 0 0 330 0 0 0 As Collection Plant Sanitary Sewer CollectionsVacation Sell Back Vacation Sell Back 6,116 5,195 0 0 921 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Employee Services Total Employee Services $5,749,008 $4,882,906 $0 $0 $866,102 $0 $0 $0 Sanitary Sewer Collections
Other Services
Sanitary Sewer CollectionsTelephone Telephone $8,000 $6,795 $0 $0 $1,205 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsMaintenance & Repair Services Maintenance & Repair Services 2,528,000 2,147,151 0 0 380,849 0 0 0 As Collection Plant Sanitary Sewer CollectionsUniform/Laundry Services Uniform/Laundry Services 45,000 38,221 0 0 6,779 0 0 0 As Collection Plant Sanitary Sewer CollectionsDuplication/Copy Costs Duplication/Copy Costs 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer CollectionsInsurance Premiums Insurance Premiums 330,821 280,982 0 0 49,839 0 0 0 As Collection Plant Sanitary Sewer CollectionsAutomotive Equipment Rental Automotive Equipment Rental 443,366 376,572 0 0 66,794 0 0 0 As Collection Plant Sanitary Sewer CollectionsComputer/Tech/Operation Support Computer/Tech/Operation Support 165,931 140,933 0 0 24,998 0 0 0 As Collection Plant Sanitary Sewer CollectionsRadio Equipment Rental Radio Equipment Rental 55,261 46,936 0 0 8,325 0 0 0 As Collection Plant Sanitary Sewer CollectionsOther Rentals Other Rentals 35,000 29,727 0 0 5,273 0 0 0 As Collection Plant Sanitary Sewer CollectionsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsPublicity & Advertising Publicity & Advertising 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer CollectionsPostage/Mailing Services Postage/Mailing Services 6,000 5,096 0 0 904 0 0 0 As Collection Plant Sanitary Sewer CollectionsProcessing Fees Processing Fees 118,000 100,223 0 0 17,777 0 0 0 As Collection Plant Sanitary Sewer CollectionsTesting & Analysis Services Testing & Analysis Services 1,500 1,274 0 0 226 0 0 0 As Collection Plant Sanitary Sewer CollectionsTraining Services Training Services 40,000 33,974 0 0 6,026 0 0 0 As Collection Plant Sanitary Sewer CollectionsProfessional & Special Services Professional & Special Services 535,000 454,401 0 0 80,599 0 0 0 As Collection Plant Sanitary Sewer CollectionsOther Services Other Services 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsElectricity Electricity 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Other Services Total Other Services $4,314,879 $3,664,832 $0 $0 $650,047 $0 $0 $0 Sanitary Sewer Collections
Materials & Supplies
Sanitary Sewer CollectionsMaterials & Supplies Materials & Supplies $625,000 $530,842 $0 $0 $94,158 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 185,621 157,657 0 0 27,964 0 0 0 As Collection Plant Sanitary Sewer CollectionsChemicals Chemicals 1,500,000 1,274,021 0 0 225,979 0 0 0 As Collection Plant Sanitary Sewer CollectionsComputer Software Computer Software 7,000 5,945 0 0 1,055 0 0 0 As Collection Plant Sanitary Sewer CollectionsNon-Capital Assets Non-Capital Assets 250,000 212,337 0 0 37,663 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Materials & Supplies Total Materials & Supplies $2,567,621 $2,180,803 $0 $0 $386,818 $0 $0 $0 Sanitary Sewer Collections
Other Expenses
Sanitary Sewer CollectionsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsMeetings & Travel Meetings & Travel 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer CollectionsMemberships Memberships 25,000 21,234 0 0 3,766 0 0 0 As Collection Plant Sanitary Sewer CollectionsRetirement Expense Retirement Expense 289,303 245,719 0 0 43,584 0 0 0 As Collection Plant Sanitary Sewer CollectionsVehicle Acquisition Vehicle Acquisition 1,400,000 1,189,087 0 0 210,913 0 0 0 As Collection Plant Sanitary Sewer CollectionsEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsSettlement Payments Settlement Payments 105,845 89,899 0 0 15,946 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Other Expenses Total Other Expenses $1,821,148 $1,546,788 $0 $0 $274,360 $0 $0 $0 Sanitary Sewer Collections Total Sanitary Sewer Collections
DRAFT
$14,452,656 $12,275,329 $0 $0 $2,177,327 $0 $0 $0
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 6 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Laboratory
Employee Services
LaboratorySalaries - Regular Salaries - Regular $520,429 $0 $260,215 $260,215 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratorySalaries Part Time - Temp Salaries Part Time - Temp 40,500 0 20,250 20,250 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRegular Overtime Regular Overtime 3,600 0 1,800 1,800 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryHoliday Pay Holiday Pay 3,450 0 1,725 1,725 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryAdditional Pay Additional Pay 900 0 450 450 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRetirement Retirement 149,300 0 74,650 74,650 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryDeferred Compensation Deferred Compensation 21,013 0 10,507 10,507 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryMedicare Medicare 8,242 0 4,121 4,121 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryHealth/Dental/Vision Health/Dental/Vision 112,140 0 56,070 56,070 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryL/T Disability Insurance L/T Disability Insurance 3,278 0 1,639 1,639 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryLife Insurance Life Insurance 475 0 238 238 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryWorkers Compensation Workers Compensation 12,785 0 6,393 6,393 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryUnemployment Insurance Unemployment Insurance 589 0 295 295 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryCell Phone Allowance Cell Phone Allowance 540 0 270 270 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryEmployee Separation Pay Employee Separation Pay 6,432 0 3,216 3,216 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryVacation Sell Back Vacation Sell Back 1,061 0 531 531 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Employee Services Total Employee Services $884,734 $0 $442,367 $442,367 $0 $0 $0 $0 Laboratory
Other Services
LaboratoryTelephone Telephone $1,875 $0 $938 $938 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratoryMaintenance & Repair Services Maintenance & Repair Services 63,000 0 31,500 31,500 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryUniform/Laundry Services Uniform/Laundry Services 6,375 0 3,188 3,188 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryDuplication/Copy Costs Duplication/Copy Costs 375 0 188 188 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryInsurance Premiums Insurance Premiums 58,031 0 29,016 29,016 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryAutomotive Equipment Rental Automotive Equipment Rental 15,997 0 7,998 7,998 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryComputer/Tech/Operation Support Computer/Tech/Operation Support 39,293 0 19,647 19,647 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRadio Equipment Rental Radio Equipment Rental 1,543 0 772 772 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryPublicity & Advertising Publicity & Advertising 1,200 0 600 600 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryPostage/Mailing Services Postage/Mailing Services 225 0 113 113 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryProcessing Fees Processing Fees 42,375 0 21,188 21,188 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTesting & Analysis Services Testing & Analysis Services 750 0 375 375 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTraining Services Training Services 11,250 0 5,625 5,625 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryProfessional & Special Services Professional & Special Services 30,000 0 15,000 15,000 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryOther Services Other Services 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryLaboratory Service Laboratory Service 104,625 0 52,313 52,313 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryBuilding Repairs/Maint Building Repairs/Maint 1,875 0 938 938 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Other Services Total Other Services $378,789 $0 $189,394 $189,394 $0 $0 $0 $0 Laboratory
Materials & Supplies
LaboratoryMaterials & Supplies Materials & Supplies $127,125 $0 $63,563 $63,563 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratoryComputer Software Computer Software 118,875 0 59,438 59,438 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 2,625 0 1,313 1,313 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryChemicals Chemicals 75,000 0 37,500 37,500 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryLibrary Materials Library Materials 750 0 375 375 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryNon-Capital Assets Non-Capital Assets 7,500 0 3,750 3,750 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Materials & Supplies Total Materials & Supplies $331,875 $0 $165,938 $165,938 $0 $0 $0 $0 Laboratory
Other Expenses
LaboratoryMemberships Memberships $2,513 $0 $1,257 $1,257 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratoryMeetings & Travel Meetings & Travel 1,500 0 750 750 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTraining Training 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryVehicle Acquisition Vehicle Acquisition 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryEquipment Acquisition Equipment Acquisition 18,750 0 9,375 9,375 0 0 0 0 50.0% CBOD 50.0% SS LaboratorySettlement Payments Settlement Payments 18,334 0 9,167 9,167 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Other Expenses Total Other Expenses $41,097 $0 $20,549 $20,549 $0 $0 $0 $0 Laboratory
Total Laboratory
DRAFT
$1,636,495 $0 $818,248 $818,248 $0 $0 $0 $0
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 7 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Other Support Services
Employee Services
Other Support ServicesSalaries - Regular Salaries - Regular $707,156 $0 $0 $0 $707,156 $0 $0 $0 100.0% AC Other Support ServicesSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 100.0% AC Other Support ServicesRegular Overtime Regular Overtime 0 0 0 0 0 0 0 0 100.0% AC Other Support ServicesEmployee Separation Pay Employee Separation Pay 8,740 0 0 0 8,740 0 0 0 100.0% AC Other Support ServicesAdditional Pay Additional Pay 0 0 0 0 0 0 0 0 100.0% AC Other Support ServicesRetirement Retirement 202,116 0 0 0 202,116 0 0 0 100.0% AC Other Support ServicesDeferred Compensation Deferred Compensation 10,280 0 0 0 10,280 0 0 0 100.0% AC Other Support ServicesMedicare Medicare 9,725 0 0 0 9,725 0 0 0 100.0% AC Other Support ServicesHealth/Dental/Vision Health/Dental/Vision 118,742 0 0 0 118,742 0 0 0 100.0% AC Other Support ServicesL/T Disability Insurance L/T Disability Insurance 4,478 0 0 0 4,478 0 0 0 100.0% AC Other Support ServicesLife Insurance Life Insurance 462 0 0 0 462 0 0 0 100.0% AC Other Support ServicesWorkers Compensation Workers Compensation 23,032 0 0 0 23,032 0 0 0 100.0% AC Other Support ServicesUnemployment Insurance Unemployment Insurance 713 0 0 0 713 0 0 0 100.0% AC Other Support ServicesCell Phone Allowance Cell Phone Allowance 4,431 0 0 0 4,431 0 0 0 100.0% AC Other Support ServicesVacation Sell Back Vacation Sell Back 1,442 0 0 0 1,442 0 0 0 100.0% AC Other Support Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Other Support ServicesTotal Employee Services Total Employee Services $1,091,317 $0 $0 $0 $1,091,317 $0 $0 $0 Other Support Services
Other Services
Other Support ServicesInsurance Premiums Insurance Premiums $73,048 $0 $0 $0 $73,048 $0 $0 $0 100.0% AC Other Support ServicesProf & Special Services Prof & Special Services 128,895 0 0 0 128,895 0 0 0 100.0% AC Other Support Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Other Support ServicesTotal Other Services Total Other Services $201,943 $0 $0 $0 $201,943 $0 $0 $0 Materials & Supplies
Other Support ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Other Support ServicesSettlement Payments Settlement Payments 24,984 0 0 0 24,984 0 0 0 100.0% AC Other Support Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Other Support ServicesTotal Materials & Supplies Total Materials & Supplies $24,984 $0 $0 $0 $24,984 $0 $0 $0 Total Other Support Services $1,318,244 $0 $0 $0 $1,318,244 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 8 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Environmental Control
Employee Services
Environmental ControlSalaries - Regular Salaries - Regular $475,417 $148,145 $132,642 $142,796 $51,834 $0 $0 $0 As Treatment Plant Environmental ControlRegular Overtime Regular Overtime 29,892 9,315 8,340 8,978 3,259 0 0 0 As Treatment Plant Environmental ControlStand By Time Stand By Time 42,342 13,194 11,814 12,718 4,617 0 0 0 As Treatment Plant Environmental ControlEmployee Separation Pay Employee Separation Pay 5,876 1,831 1,639 1,765 641 0 0 0 As Treatment Plant Environmental ControlAdditional Pay Additional Pay 13,992 4,360 3,904 4,203 1,526 0 0 0 As Treatment Plant Environmental ControlRetirement Retirement 140,027 43,634 39,068 42,058 15,267 0 0 0 As Treatment Plant Environmental ControlDeferred Compensation Deferred Compensation 21,772 6,784 6,074 6,539 2,374 0 0 0 As Treatment Plant Environmental ControlMedicare Medicare 8,541 2,661 2,383 2,565 931 0 0 0 As Treatment Plant Environmental ControlHealth/Dental/Vision Health/Dental/Vision 114,913 35,808 32,061 34,515 12,529 0 0 0 As Treatment Plant Environmental ControlL/T Disability Insurance L/T Disability Insurance 3,033 945 846 911 331 0 0 0 As Treatment Plant Environmental ControlLife Insurance Life Insurance 412 128 115 124 45 0 0 0 As Treatment Plant Environmental ControlWorkers Compensation Workers Compensation 14,998 4,674 4,184 4,505 1,635 0 0 0 As Treatment Plant Environmental ControlUnemployment Insurance Unemployment Insurance 621 194 173 187 68 0 0 0 As Treatment Plant Environmental ControlCell Phone Allowance Cell Phone Allowance 690 215 193 207 75 0 0 0 As Treatment Plant Environmental ControlRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 As Treatment Plant Environmental ControlHoliday Pay Holiday Pay 2,162 674 603 649 236 0 0 0 As Treatment Plant Environmental ControlPart-Time Salaries Part-Time Salaries 23,500 7,323 6,557 7,058 2,562 0 0 0 As Treatment Plant Environmental ControlPart-Time Salaries (2) Part-Time Salaries (2) 15,400 4,799 4,297 4,626 1,679 0 0 0 As Treatment Plant Environmental ControlVacation Sell Back Vacation Sell Back 969 302 270 291 106 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Employee Services Total Employee Services $914,557 $284,986 $255,163 $274,696 $99,713 $0 $0 $0 Environmental Control
Other Services
Environmental ControlTelephone Telephone $6,599 $2,056 $1,841 $1,982 $719 $0 $0 $0 As Treatment Plant Environmental ControlMaintenance & Repair Services Maintenance & Repair Services 9,118 2,841 2,544 2,739 994 0 0 0 As Treatment Plant Environmental ControlUniform/Laundry Services Uniform/Laundry Services 3,948 1,230 1,101 1,186 430 0 0 0 As Treatment Plant Environmental ControlDuplication/Copy Costs Duplication/Copy Costs 2,350 732 656 706 256 0 0 0 As Treatment Plant Environmental ControlInsurance Premiums Insurance Premiums 58,687 18,288 16,374 17,627 6,399 0 0 0 As Treatment Plant Environmental ControlAutomotive Equipment Rental Automotive Equipment Rental 20,821 6,488 5,809 6,254 2,270 0 0 0 As Treatment Plant Environmental ControlComputer/Tech/Operation Support Computer/Tech/Operation Support 73,028 22,756 20,375 21,935 7,962 0 0 0 As Treatment Plant Environmental ControlRadio Equipment Rental Radio Equipment Rental 2,223 693 620 668 242 0 0 0 As Treatment Plant Environmental ControlPublicity & Advertising Publicity & Advertising 1,410 439 393 424 154 0 0 0 As Treatment Plant Environmental ControlPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 As Treatment Plant Environmental ControlPostage/Mailing Services Postage/Mailing Services 2,350 732 656 706 256 0 0 0 As Treatment Plant Environmental ControlProcessing Fees Processing Fees 1,692 527 472 508 184 0 0 0 As Treatment Plant Environmental ControlTesting & Analysis Services Testing & Analysis Services 705 220 197 212 77 0 0 0 As Treatment Plant Environmental ControlTraining Services Training Services 15,510 4,833 4,327 4,659 1,691 0 0 0 As Treatment Plant Environmental ControlProfessional & Special Services Professional & Special Services 177,397 55,279 49,494 53,283 19,341 0 0 0 As Treatment Plant Environmental ControlOther Services Other Services 0 0 0 0 0 0 0 0 As Treatment Plant Environmental ControlLaboratory Services Laboratory Services 94,000 29,291 26,226 28,234 10,249 0 0 0 As Treatment Plant Environmental ControlSecurity & Alarm Services Security & Alarm Services 1,410 439 393 424 154 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Other Services Total Other Services $471,248 $146,846 $131,479 $141,544 $51,379 $0 $0 $0 Environmental Control
Materials & Supplies
Environmental ControlMaterials & Supplies Materials & Supplies $18,800 $5,858 $5,245 $5,647 $2,050 $0 $0 $0 As Treatment Plant Environmental ControlComputer Software Computer Software 36,660 11,424 10,228 11,011 3,997 0 0 0 As Treatment Plant Environmental ControlFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 10,707 3,336 2,987 3,216 1,167 0 0 0 As Treatment Plant Environmental ControlLibrary Materials Library Materials 1,880 586 525 565 205 0 0 0 As Treatment Plant Environmental ControlNon-Capital Assets Non-Capital Assets 8,460 2,636 2,360 2,541 922 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Materials & Supplies Total Materials & Supplies $76,507 $23,841 $21,346 $22,980 $8,341 $0 $0 $0 Environmental Control
Other Expenses
Environmental ControlTraining Training $0 $0 $0 $0 $0 $0 $0 $0 As Treatment Plant Environmental ControlMeetings & Travel Meetings & Travel 564 176 157 169 61 0 0 0 As Treatment Plant Environmental ControlMemberships Memberships 2,021 630 564 607 220 0 0 0 As Treatment Plant Environmental ControlRetirement Expense Retirement Expense 31,156 9,709 8,693 9,358 3,397 0 0 0 As Treatment Plant Environmental ControlVehicle Acquisition Vehicle Acquisition 82,156 25,601 22,922 24,676 8,957 0 0 0 As Treatment Plant Environmental ControlSettlement Payments Settlement Payments 17,233 5,370 4,808 5,176 1,879 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Other Expenses Total Other Expenses $133,130 $41,485 $37,143 $39,987 $14,515 $0 $0 $0 Environmental Control
Total Environmental Control DRAFT$1,595,443 $497,158 $445,131 $479,206 $173,948 $0 $0 $0
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 9 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Treatment Plant Maintenance
Employee Services
Treatment Plant MaintenanceSalaries - Regular Salaries - Regular $1,640,625 $511,237 $457,737 $492,777 $178,875 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceRegular Overtime Regular Overtime 60,000 18,697 16,740 18,022 6,542 0 0 0 As Treatment Plant Treatment Plant MaintenanceStand By Time (Call Back) Stand By Time (Call Back) 30,100 9,379 8,398 9,041 3,282 0 0 0 As Treatment Plant Treatment Plant MaintenanceHoliday Pay Holiday Pay 2,000 623 558 601 218 0 0 0 As Treatment Plant Treatment Plant MaintenanceEmployee Separation Pay Employee Separation Pay 20,276 6,318 5,657 6,090 2,211 0 0 0 As Treatment Plant Treatment Plant MaintenanceAdditional Pay Additional Pay 7,739 2,412 2,159 2,324 844 0 0 0 As Treatment Plant Treatment Plant MaintenanceRetirement Retirement 476,406 148,453 132,918 143,093 51,942 0 0 0 As Treatment Plant Treatment Plant MaintenanceDeferred Compensation Deferred Compensation 88,387 27,542 24,660 26,548 9,637 0 0 0 As Treatment Plant Treatment Plant MaintenanceMedicare Medicare 25,193 7,850 7,029 7,567 2,747 0 0 0 As Treatment Plant Treatment Plant MaintenanceHealth/Dental/Vision Health/Dental/Vision 330,812 103,085 92,297 99,362 36,068 0 0 0 As Treatment Plant Treatment Plant MaintenanceL-T Disability Insurance L-T Disability Insurance 10,431 3,250 2,910 3,133 1,137 0 0 0 As Treatment Plant Treatment Plant MaintenanceLife Insurance Life Insurance 1,418 442 396 426 155 0 0 0 As Treatment Plant Treatment Plant MaintenanceWorkers' Compensation Workers' Compensation 121,256 37,785 33,831 36,420 13,220 0 0 0 As Treatment Plant Treatment Plant MaintenanceUnemployment Insurance Unemployment Insurance 1,769 551 494 531 193 0 0 0 As Treatment Plant Treatment Plant MaintenanceCell Phone Allowance Cell Phone Allowance 3,300 1,028 921 991 360 0 0 0 As Treatment Plant Treatment Plant MaintenanceVacation Sell Back Vacation Sell Back 4,918 1,533 1,372 1,477 536 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Employee Services Total Employee Services $2,824,630 $880,186 $788,076 $848,403 $307,965 $0 $0 $0 Treatment Plant Maintenance
Other Services
Treatment Plant MaintenanceTelephone Telephone $11,000 $3,428 $3,069 $3,304 $1,199 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceMaint & Repair Services Maint & Repair Services 700,000 218,128 195,301 210,251 76,320 0 0 0 As Treatment Plant Treatment Plant MaintenanceUniform/Laundry Services Uniform/Laundry Services 21,000 6,544 5,859 6,308 2,290 0 0 0 As Treatment Plant Treatment Plant MaintenanceDuplicating/Copy Costs Duplicating/Copy Costs 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment Plant MaintenanceInsurance Premiums Insurance Premiums 178,117 55,503 49,695 53,499 19,420 0 0 0 As Treatment Plant Treatment Plant MaintenanceAutomotive Equip Rental Automotive Equip Rental 165,254 51,495 46,106 49,635 18,017 0 0 0 As Treatment Plant Treatment Plant MaintenanceComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 152,370 47,480 42,511 45,766 16,613 0 0 0 As Treatment Plant Treatment Plant MaintenanceRadio Equipment Rental Radio Equipment Rental 40,688 12,679 11,352 12,221 4,436 0 0 0 As Treatment Plant Treatment Plant MaintenanceOther Rentals Other Rentals 5,000 1,558 1,395 1,502 545 0 0 0 As Treatment Plant Treatment Plant MaintenanceTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenancePublicity & Advertising Publicity & Advertising 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment Plant MaintenancePostage/Mailing Services Postage/Mailing Services 2,500 779 698 751 273 0 0 0 As Treatment Plant Treatment Plant MaintenanceLegal Services Legal Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenanceEngineering Services Engineering Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenanceTesting & Analysis Services Testing & Analysis Services 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment Plant MaintenanceProf & Special Services Prof & Special Services 37,000 11,530 10,323 11,113 4,034 0 0 0 As Treatment Plant Treatment Plant MaintenanceOther Services Other Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenanceBuilding Repairs/Maint Building Repairs/Maint 15,000 4,674 4,185 4,505 1,635 0 0 0 As Treatment Plant Treatment Plant MaintenanceProcessing Fees Processing Fees 500 156 140 150 55 0 0 0 As Treatment Plant Treatment Plant MaintenanceVacation Sell Back (2) Vacation Sell Back (2) 3,346 1,043 934 1,005 365 0 0 0 As Treatment Plant Treatment Plant MaintenanceBuildings and Structures Buildings and Structures 250,000 77,903 69,750 75,090 27,257 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Other Services Total Other Services $1,584,775 $493,834 $442,154 $476,001 $172,785 $0 $0 $0 Materials & Supplies
Treatment Plant MaintenanceMaterials & Supplies Materials & Supplies $900,000 $280,450 $251,101 $270,323 $98,126 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 106,078 33,055 29,596 31,862 11,566 0 0 0 As Treatment Plant Treatment Plant MaintenanceNon-Capital Assets (2) Non-Capital Assets (2) 525,000 163,596 146,476 157,688 57,240 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Materials & Supplies Total Materials & Supplies $1,531,078 $477,101 $427,173 $459,873 $166,931 $0 $0 $0 Other Expenses
Treatment Plant MaintenanceTraining Training $5,000 $1,558 $1,395 $1,502 $545 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceMeetings & Travel Meetings & Travel 500 156 140 150 55 0 0 0 As Treatment Plant Treatment Plant MaintenanceRetirement Expense Retirement Expense 244,795 76,281 68,298 73,526 26,690 0 0 0 As Treatment Plant Treatment Plant MaintenanceVehicle Acquisition Vehicle Acquisition 265,000 82,577 73,935 79,595 28,893 0 0 0 As Treatment Plant Treatment Plant MaintenanceEquipment Acquisition Equipment Acquisition 110,102 34,309 30,719 33,070 12,004 0 0 0 As Treatment Plant Treatment Plant MaintenanceCapital Maintenance Capital Maintenance 300,000 93,483 83,700 90,108 32,709 0 0 0 As Treatment Plant Treatment Plant MaintenanceSettlement Payments Settlement Payments 58,819 18,329 16,411 17,667 6,413 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Other Expenses Total Other Expenses $984,216 $306,693 $274,598 $295,618 $107,307 $0 $0 $0 Other Support Services
Total Treatment Plant Maintenance
DRAFT
$6,924,699 $2,157,814 $1,932,001 $2,079,896 $754,989 $0 $0 $0
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 10 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Sanitary Pump Stations
Employee Services
Sanitary Pump StationsSalaries - Regular Salaries - Regular $1,481,488 $1,481,488 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsRegular Overtime Regular Overtime 60,000 60,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsStand By Time (Call Back) Stand By Time (Call Back) 22,600 22,600 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsHoliday Pay Holiday Pay 1,000 1,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsEmployee Separation Pay Employee Separation Pay 18,310 18,310 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsAdditional Pay Additional Pay 8,674 8,674 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsRetirement Retirement 424,024 424,024 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsDeferred Compensation Deferred Compensation 79,193 79,193 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsMedicare Medicare 22,690 22,690 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsHealth/Dental/Vision Health/Dental/Vision 271,111 271,111 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsL-T Disability Insurance L-T Disability Insurance 9,375 9,375 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsLife Insurance Life Insurance 1,155 1,155 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsWorkers' Compensation Workers' Compensation 108,927 108,927 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsUnemployment Insurance Unemployment Insurance 1,592 1,592 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsCell Phone Allowance Cell Phone Allowance 2,448 2,448 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsVacation Sell Back Vacation Sell Back 3,021 3,021 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Employee Services Total Employee Services $2,515,608 $2,515,608 $0 $0 $0 $0 $0 $0 Treatment Plant Maintenance
Other Services
Sanitary Pump StationsElectricity Electricity $1,692,000 $1,692,000 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsGas Gas 16,920 16,920 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsWater Water 50,000 50,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsTelephone Telephone 12,500 12,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsStorm Water Storm Water 3,000 3,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsMaint. & Repair Services Maint. & Repair Services 400,000 400,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsDuplication/Copy Costs Duplication/Copy Costs 200 200 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsInsurance Premiums Insurance Premiums 160,244 160,244 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsAutomotive Equip Rental Automotive Equip Rental 89,576 89,576 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsRadio Equipment Rental Radio Equipment Rental 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsOther Services Other Services 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPostage/Mailing Services Postage/Mailing Services 2,500 2,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsProcessing Fees Processing Fees 8,000 8,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsTesting & Analysis Servcs Testing & Analysis Servcs 500 500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsEngineering Services Engineering Services 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsProf & Special Services Prof & Special Services 24,000 24,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPublicity & Advertising Publicity & Advertising 500 500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsUniform/Laundry Services Uniform/Laundry Services 15,500 15,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsTelephone Rental Telephone Rental 58,538 58,538 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsBuilding Repairs/Maint Building Repairs/Maint 15,000 15,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsRent Rent 1,500 1,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Other Services Total Other Services $2,550,478 $2,550,478 $0 $0 $0 $0 $0 $0 Materials & Supplies
Sanitary Pump StationsMaterials & Supplies Materials & Supplies $301,164 $301,164 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsNon-Capital Assets Non-Capital Assets 500,000 500,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Materials & Supplies Total Materials & Supplies $801,164 $801,164 $0 $0 $0 $0 $0 $0 Sanitary Pump Stations
Other Expenses
Sanitary Pump StationsTraining Training $2,500 $2,500 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsTaxes Taxes 8,500 8,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsVehicle Acquisition Vehicle Acquisition 75,000 75,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsSettlement Payments Settlement Payments 52,381 52,381 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsCapital Maintenance Capital Maintenance 75,000 75,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Other Expenses Total Other Expenses $213,381 $213,381 $0 $0 $0 $0 $0 $0 Sanitary Pump Stations
Total Sanitary Pump Stations
DRAFT
$6,080,631 $6,080,631 $0 $0 $0 $0 $0 $0
ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 11 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Regulatory Compliance
Employee Services
Regulatory ComplianceSummary Account Summary Account $112,903 $0 $0 $0 $112,903 $0 $0 $0 100.0% AC Regulatory ComplianceRetirement Retirement 32,120 0 0 0 32,120 0 0 0 100.0% AC Regulatory ComplianceDeferred Compensation Deferred Compensation 0 0 0 0 0 0 0 0 100.0% AC Regulatory ComplianceMedicare/Social Security Medicare/Social Security 1,637 0 0 0 1,637 0 0 0 100.0% AC Regulatory ComplianceHealth/Dental/Vision Health/Dental/Vision 13,440 0 0 0 13,440 0 0 0 100.0% AC Regulatory ComplianceL/T Disability Insurance L/T Disability Insurance 712 0 0 0 712 0 0 0 100.0% AC Regulatory ComplianceLife Insurance Life Insurance 57 0 0 0 57 0 0 0 100.0% AC Regulatory ComplianceWorker's Compensation Worker's Compensation 2,506 0 0 0 2,506 0 0 0 100.0% AC Regulatory ComplianceUnemployment Insurance Unemployment Insurance 113 0 0 0 113 0 0 0 100.0% AC Regulatory ComplianceAllowances Allowances 0 0 0 0 0 0 0 0 100.0% AC Regulatory ComplianceInsurance Premiums Insurance Premiums 11,629 0 0 0 11,629 0 0 0 100.0% AC Regulatory Compliance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Regulatory ComplianceTotal Employee Services Total Employee Services $175,117 $0 $0 $0 $175,117 $0 $0 $0 Other Services
Regulatory ComplianceProcessing Fees Processing Fees $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Regulatory ComplianceProf & Special Services Prof & Special Services 58,000 0 0 0 58,000 0 0 0 100.0% AC Regulatory ComplianceMaterials and Supplies Materials and Supplies 3,300 0 0 0 3,300 0 0 0 100.0% AC Regulatory ComplianceTraining Training 550 0 0 0 550 0 0 0 100.0% AC Regulatory ComplianceSummary Account (2) Summary Account (2) 3,500 0 0 0 3,500 0 0 0 100.0% AC Regulatory ComplianceDeferred Compensation (2) Deferred Compensation (2) 9 0 0 0 9 0 0 0 100.0% AC Regulatory ComplianceDeferred Compensation (3) Deferred Compensation (3) 48 0 0 0 48 0 0 0 100.0% AC Regulatory Compliance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Regulatory ComplianceTotal Other Services Total Other Services $65,407 $0 $0 $0 $65,407 $0 $0 $0 Total Regulatory Compliance $240,524 $0 $0 $0 $240,524 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 12 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Safety Services
Employee Services
Safety ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Safety ServicesRegular Overtime Regular Overtime 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesRetirement Retirement 33,657 0 0 0 33,657 0 0 0 100.0% AC Safety ServicesDeferred Compensation Deferred Compensation 2,392 0 0 0 2,392 0 0 0 100.0% AC Safety ServicesMedicare Medicare 1,722 0 0 0 1,722 0 0 0 100.0% AC Safety ServicesHealth/Dental/Vision Health/Dental/Vision 21,001 0 0 0 21,001 0 0 0 100.0% AC Safety ServicesL/T Disability Insurance L/T Disability Insurance 742 0 0 0 742 0 0 0 100.0% AC Safety ServicesLife Insurance Life Insurance 87 0 0 0 87 0 0 0 100.0% AC Safety ServicesWorkers Compensation Workers Compensation 3,664 0 0 0 3,664 0 0 0 100.0% AC Safety ServicesUnemployment Insurance Unemployment Insurance 118 0 0 0 118 0 0 0 100.0% AC Safety ServicesCell Phone Allowance Cell Phone Allowance 600 0 0 0 600 0 0 0 100.0% AC Safety ServicesSummary Account Summary Account 117,704 0 0 0 117,704 0 0 0 100.0% AC Safety ServicesEmployee Separation Pay Employee Separation Pay 1,455 0 0 0 1,455 0 0 0 100.0% AC Safety ServicesAdditional Pay Additional Pay 600 0 0 0 600 0 0 0 100.0% AC Safety ServicesVacation Sell Back Vacation Sell Back 240 0 0 0 240 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Employee Services Total Employee Services $183,982 $0 $0 $0 $183,982 $0 $0 $0 Safety Services
Other Services
Safety ServicesMaint. & Repair Services Maint. & Repair Services $1,500 $0 $0 $0 $1,500 $0 $0 $0 100.0% AC Safety ServicesUniform/Laundry Services Uniform/Laundry Services 200 0 0 0 200 0 0 0 100.0% AC Safety ServicesDuplication/Copy Costs Duplication/Copy Costs 1,750 0 0 0 1,750 0 0 0 100.0% AC Safety ServicesInsurance Premiums Insurance Premiums 12,258 0 0 0 12,258 0 0 0 100.0% AC Safety ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 44,004 0 0 0 44,004 0 0 0 100.0% AC Safety ServicesRadio Equipment Rental Radio Equipment Rental 1,309 0 0 0 1,309 0 0 0 100.0% AC Safety ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesPostage/Mailing Services Postage/Mailing Services 175 0 0 0 175 0 0 0 100.0% AC Safety ServicesTraining Services Training Services 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesOther Services Other Services 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesSummary Account (2) Summary Account (2) 50,000 0 0 0 50,000 0 0 0 100.0% AC Safety ServicesTelephone Telephone 250 0 0 0 250 0 0 0 100.0% AC Safety ServicesPublicity & Advertising Publicity & Advertising 500 0 0 0 500 0 0 0 100.0% AC Safety ServicesSecurity & Alarm Services Security & Alarm Services 180,000 0 0 0 180,000 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Other Services Total Other Services $291,946 $0 $0 $0 $291,946 $0 $0 $0 Materials & Supplies
Safety ServicesMaterials and Supplies Materials and Supplies $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Safety ServicesComputer Software Computer Software 6,000 0 0 0 6,000 0 0 0 100.0% AC Safety ServicesSubscription-Periodical Subscription-Periodical 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesLibrary Materials Library Materials 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesSummary Account (3) Summary Account (3) 30,000 0 0 0 30,000 0 0 0 100.0% AC Safety ServicesNon-Capital Assets Non-Capital Assets 2,000 0 0 0 2,000 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Materials & Supplies Total Materials & Supplies $38,000 $0 $0 $0 $38,000 $0 $0 $0 Other Expenses
Safety ServicesTraining Training $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Safety ServicesMemberships Memberships 150 0 0 0 150 0 0 0 100.0% AC Safety ServicesSummary Account (4) Summary Account (4) 2,500 0 0 0 2,500 0 0 0 100.0% AC Safety ServicesSettlement Payments Settlement Payments 4,160 0 0 0 4,160 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Other Expenses Total Other Expenses $6,810 $0 $0 $0 $6,810 $0 $0 $0 Safety Services
Total Safety Services $520,738 $0 $0 $0 $520,738 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 13 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
SCADA Services
Employee Services
SCADA ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant in Service SCADA ServicesRegular Overtime Regular Overtime 1,100 560 181 195 165 0 0 0 As Net Plant in Service SCADA ServicesRetirement Retirement 56,805 28,896 9,344 10,059 8,506 0 0 0 As Net Plant in Service SCADA ServicesMedicare Medicare 2,904 1,477 478 514 435 0 0 0 As Net Plant in Service SCADA ServicesHealth/Dental/Vision Health/Dental/Vision 28,728 14,613 4,726 5,087 4,302 0 0 0 As Net Plant in Service SCADA ServicesL/T Disability Insurance L/T Disability Insurance 1,256 639 207 222 188 0 0 0 As Net Plant in Service SCADA ServicesLife Insurance Life Insurance 110 56 18 19 16 0 0 0 As Net Plant in Service SCADA ServicesWorkers Compensation Workers Compensation 6,055 3,080 996 1,072 907 0 0 0 As Net Plant in Service SCADA ServicesUnemployment Insurance Unemployment Insurance 202 103 33 36 30 0 0 0 As Net Plant in Service SCADA ServicesCell Phone Allowance Cell Phone Allowance 0 0 0 0 0 0 0 0 As Net Plant in Service SCADA ServicesSummary Account Summary Account 199,509 101,487 32,818 35,330 29,874 0 0 0 As Net Plant in Service SCADA ServicesEmployee Separation Pay Employee Separation Pay 3,862 1,965 635 684 578 0 0 0 As Net Plant in Service SCADA ServicesVacation Sell Back Vacation Sell Back 407 207 67 72 61 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Employee Services Total Employee Services $300,938 $153,082 $49,503 $53,292 $45,061 $0 $0 $0 SCADA Services
Other Services
SCADA ServicesTelephone Telephone $18,700 $9,512 $3,076 $3,312 $2,800 $0 $0 $0 As Net Plant in Service SCADA ServicesInsurance Premiums Insurance Premiums 20,664 10,511 3,399 3,659 3,094 0 0 0 As Net Plant in Service SCADA ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 42,113 21,422 6,927 7,458 6,306 0 0 0 As Net Plant in Service SCADA ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Net Plant in Service SCADA ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 As Net Plant in Service SCADA ServicesSummary Account (2) Summary Account (2) 49,500 25,180 8,142 8,766 7,412 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Other Services Total Other Services $130,977 $66,626 $21,545 $23,194 $19,612 $0 $0 $0 SCADA Services
Materials & Supplies
SCADA ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant in Service SCADA ServicesComputer Software Computer Software 110,000 55,955 18,094 19,479 16,471 0 0 0 As Net Plant in Service SCADA ServicesSummary Account (3) Summary Account (3) 2,750 1,399 452 487 412 0 0 0 As Net Plant in Service SCADA ServicesNon-Capital Assets Non-Capital Assets 165,000 83,933 27,142 29,219 24,706 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Materials & Supplies Total Materials & Supplies $277,750 $141,287 $45,688 $49,186 $41,589 $0 $0 $0 Other Expenses
SCADA ServicesMeetings & Travel Meetings & Travel $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant in Service SCADA ServicesSummary Account (4) Summary Account (4) 2,750 1,399 452 487 412 0 0 0 As Net Plant in Service SCADA ServicesSettlement Payments Settlement Payments 7,022 3,572 1,155 1,243 1,051 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Other Expenses Total Other Expenses $9,772 $4,971 $1,607 $1,730 $1,463 $0 $0 $0 Total SCADA Services $719,437 $365,966 $118,343 $127,402 $107,725 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 14 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Outreach & Training Services
Employee Services
Outreach & Training ServicesRegular Overtime Regular Overtime $350 $0 $0 $0 $350 $0 $0 $0 100.0% AC Outreach & Training ServicesMedicare Medicare 639 0 0 0 639 0 0 0 100.0% AC Outreach & Training ServicesWorkers Compensation Workers Compensation 1,357 0 0 0 1,357 0 0 0 100.0% AC Outreach & Training ServicesSummary Account Summary Account 43,873 0 0 0 43,873 0 0 0 100.0% AC Outreach & Training ServicesEmployee Separation Pay Employee Separation Pay 542 0 0 0 542 0 0 0 100.0% AC Outreach & Training ServicesAdditional Pay Additional Pay 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesRetirement Retirement 12,482 0 0 0 12,482 0 0 0 100.0% AC Outreach & Training ServicesHealth/Dental/Vision Health/Dental/Vision 5,880 0 0 0 5,880 0 0 0 100.0% AC Outreach & Training ServicesL/T Disability Insurance L/T Disability Insurance 276 0 0 0 276 0 0 0 100.0% AC Outreach & Training ServicesLife Insurance Life Insurance 25 0 0 0 25 0 0 0 100.0% AC Outreach & Training ServicesUnemployment Insurance Unemployment Insurance 44 0 0 0 44 0 0 0 100.0% AC Outreach & Training ServicesAllowances Allowances 210 0 0 0 210 0 0 0 100.0% AC Outreach & Training ServicesAdditional Pay (2) Additional Pay (2) 158 0 0 0 158 0 0 0 100.0% AC Outreach & Training ServicesVacation Sell Back Vacation Sell Back 90 0 0 0 90 0 0 0 100.0% AC Outreach & Training Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Employee Services Total Employee Services $65,926 $0 $0 $0 $65,926 $0 $0 $0 Other Services
Outreach & Training ServicesInsurance Premiums Insurance Premiums $4,557 $0 $0 $0 $4,557 $0 $0 $0 100.0% AC Outreach & Training ServicesPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesDuplication/Copy Costs Duplication/Copy Costs 15,000 0 0 0 15,000 0 0 0 100.0% AC Outreach & Training ServicesPublicity & Advertising Publicity & Advertising 35,000 0 0 0 35,000 0 0 0 100.0% AC Outreach & Training ServicesPostage/Mailing Services Postage/Mailing Services 60,000 0 0 0 60,000 0 0 0 100.0% AC Outreach & Training ServicesProcessing Fees Processing Fees 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesTraining Services Training Services 1,000 0 0 0 1,000 0 0 0 100.0% AC Outreach & Training ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 2,424 0 0 0 2,424 0 0 0 100.0% AC Outreach & Training Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Other Services Total Other Services $117,981 $0 $0 $0 $117,981 $0 $0 $0 Materials & Supplies
Outreach & Training ServicesComputer Software Computer Software $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Outreach & Training ServicesSubscription-Periodical Subscription-Periodical 90 0 0 0 90 0 0 0 100.0% AC Outreach & Training ServicesMaterials and Supplies Materials and Supplies 9,000 0 0 0 9,000 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Materials & Supplies Total Materials & Supplies $9,090 $0 $0 $0 $9,090 $0 $0 $0 Other Expenses
Outreach & Training ServicesMeetings & Travel Meetings & Travel $200 $0 $0 $0 $200 $0 $0 $0 100.0% AC Outreach & Training ServicesMemberships Memberships 125 0 0 0 125 0 0 0 100.0% AC Outreach & Training ServicesTraining Training 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesSettlement Payments Settlement Payments 1,543 0 0 0 1,543 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Other Expenses Total Other Expenses $1,868 $0 $0 $0 $1,868 $0 $0 $0 Total Outreach & Training Services $194,865 $0 $0 $0 $194,865 $0 $0 $0 Total Operations & Maintenance $77,803,393 $29,055,843 $14,439,077 $15,156,415 $19,152,059 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study Page 15 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.
FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Taxes & Transfers
Taxes & TransfersTaxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 100.0% RR ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Taxes & Transfers Total Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 Rate Funded Capital $16,000,000 $0 $0 $0 $16,000,000 $0 $0 $0 100.0% AC Debt Service
Wastewater Revenue Refunding Bonds, 2014 Revenue Bond Wastewater Revenue Refunding Bonds, 2014 Revenue Bond $6,698,250 $0 $0 $0 $6,698,250 $0 $0 $0 100.0% AC Regional Wastewater Facility Modification - N18126CA WIFIA Loan Regional Wastewater Facility Modification - N18126CA WIFIA Loan 1,296,000 0 0 0 1,296,000 0 0 0 100.0% AC Regional Wastewater Control Facilities (SRF) Regional Wastewater Control Facilities (SRF) 1,603,318 0 0 0 1,603,318 0 0 0 100.0% AC Assumed Future SRF Loan Assumed Future SRF Loan 0 0 0 0 0 0 0 0 100.0% AC Asssumed Revenue Bond Asssumed Revenue Bond 0 0 0 0 0 0 0 0 100.0% AC Additional Revenue Bond Additional Revenue Bond 0 0 0 0 0 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Debt ServiceTotal Debt Service $9,597,568 $0 $0 $0 $9,597,568 $0 $0 $0 Less: Debt Service Funding Less: Debt Service Funding
Connection Fees (434 Fund) Connection Fees (434 Fund) $2,095,736 $0 $0 $0 $2,095,736 $0 $0 $0 As Debt Bond Defeasance (431 Fund) Bond Defeasance (431 Fund) 0 0 0 0 0 0 0 0 As Debt Bond Defeasance (434 Fund) Bond Defeasance (434 Fund) 0 0 0 0 0 0 0 0 As Debt ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Less Debt Service Funding Total Less Debt Service Funding $2,095,736 $0 $0 $0 $2,095,736 $0 $0 $0 Net Debt ServiceNet Debt Service $7,501,832 $0 $0 $0 $7,501,832 $0 $0 $0 To / (From) Reserves
Operating Fund - Sewer (431) Operating Fund - Sewer (431) ($4,842,874) ($4,842,874) $0 $0 $0 $0 $0 $0 100.0% VOL Capital Fund - Sewer Capital Fund - Sewer 0 0 0 0 0 0 0 0 100.0% AC Rate Stabilization Fund - Sewer (438) Rate Stabilization Fund - Sewer (438) 0 0 0 0 0 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total To / (From) Reserves Total To / (From) Reserves ($4,842,874) ($4,842,874) $0 $0 $0 $0 $0 $0 Total Revenue Requirement $96,462,351 $24,212,969 $14,439,077 $15,156,415 $42,653,891 $0 $0 $0 Less: Other Revenues
Fats, Oils, Grease Inspection Fats, Oils, Grease Inspection $44,311 $13,808 $12,363 $13,309 $4,831 $0 $0 $0 As Treatment Plant Interest IncomeInterest Income 843,714 211,780 126,292 132,566 373,075 0 0 0 As Net Revenue Requirement Service PenaltiesService Penalties 1,478,664 371,159 221,336 232,332 653,838 0 0 0 As Net Revenue Requirement Lien Admin FeesLien Admin Fees 100,000 25,101 14,969 15,712 44,218 0 0 0 As Net Revenue Requirement Pre-Treatment Violations Pre-Treatment Violations 60,291 15,134 9,025 9,473 26,660 0 0 0 As Net Revenue Requirement Returned Check Fees Returned Check Fees 1,005 252 150 158 444 0 0 0 As Net Revenue Requirement Other Revenue Other Revenue 45,225 11,352 6,770 7,106 19,998 0 0 0 As Net Revenue Requirement Program RevenueProgram Revenue 2,513 631 376 395 1,111 0 0 0 As Net Revenue Requirement Refunds and Reimbursements Refunds and Reimbursements 30,150 7,568 4,513 4,737 13,332 0 0 0 As Net Revenue Requirement Mapping Fee Mapping Fee 6,442 1,617 964 1,012 2,849 0 0 0 As Net Revenue Requirement Permit Center Operations Permit Center Operations 46,744 11,733 6,997 7,344 20,669 0 0 0 As Net Revenue Requirement Plan Check FeesPlan Check Fees 10,050 2,523 1,504 1,579 4,444 0 0 0 As Net Revenue Requirement Wastewater Hauler Wastewater Hauler 0 0 0 0 0 0 0 0 As Net Revenue Requirement --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Other Revenues Total Other Revenues $2,669,108 $672,657 $405,259 $425,724 $1,165,468 $0 $0 $0 Net Revenue Requirement $93,793,243 $23,540,312 $14,033,818 $14,730,690 $41,488,422 $0 $0 $0
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Distribution of Revenue Requirement
Exhibit 13
ResidentialSingle Family & Condo ResidentialMulti-Family ResidentialApartments Commercial/InstitutionalLow Strength Commercial/InstitutionalMedium Strength Commercial/InstitutionalHigh Strength Commercial/InstitutionalSchools Industrial Net Revenue Basis of
Requirement Industrial Allocation
Volume $23,540,312 $14,711,197 $1,276,103 $3,200,444 $154,008 $1,565,357 $569,356 $422,275 $1,641,573 (VOL) Strength
Carbonaceous Biochemical Oxygen Demand $14,033,818 $7,930,152 $687,890 $1,725,217 $83,019 $1,104,630 $585,928 $227,630 $1,689,352 (CBOD) Suspended Solids 14,730,690 8,594,773 745,542 1,869,806 89,977 1,113,855 533,072 246,707 1,536,958 (SS) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Strength $28,764,508 $16,524,926 $1,433,432 $3,595,023 $172,995 $2,218,485 $1,119,000 $474,337 $3,226,310 Customer
Actual Customer $41,488,422 $27,599,576 $2,829,376 $9,757,036 $66,513 $1,052,993 $144,883 $29,705 $8,341 (AC) Weighted for Cust. Acctg. 0 0 0 0 0 0 0 0 0 (WCA)
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Customer Related $41,488,422 $27,599,576 $2,829,376 $9,757,036 $66,513 $1,052,993 $144,883 $29,705 $8,341 Revenue Related $0 $0 $0 $0 $0 $0 $0 $0 $0 (RR)
Direct Assign. $0 $0 $0 $0 $0 $0 $0 $0 $0 (DA)
Net Revenue Requirement $93,793,243 $58,835,699 $5,538,911 $16,552,503 $393,516 $4,836,835 $1,833,239 $926,317 $4,876,223 Residential Commercial/Institutional
High Strength
Medium
Multi-Family Apartments Low Strength Strength
Single Family
& Condo Schools
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Summary of Cost of Service Analysis
Exhibit 14
FY 2024-25
Expenses
Revenues at Present Rates $91,654,635 $57,144,290 $5,495,976 $16,548,040 $372,425 $4,806,833 $1,895,325 $932,940 $4,458,805 Allocated Revenue Requirement $93,793,243 $58,835,699 $5,538,911 $16,552,503 $393,516 $4,836,835 $1,833,239 $926,317 $4,876,223 ---------------- ---------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Bal / (Def) of Funds ($2,138,608) ($1,691,408) ($42,935) ($4,463) ($21,091) ($30,002) $62,086 $6,623 ($417,418) Required % Change in Rates 2.3% 3.0% 0.8% 0.0% 5.7% 0.6% -3.3% -0.7% 9.4% High Strength Schools Industrial
Medium
Multi-Family Strength
Single Family
& Condo Apartments Low Strength
Residential Commercial/Institutional
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Average Unit Costs
Exhibit 15
Total Industrial
Volume - $ / CCF $1.55 $1.61 $1.61 $1.61 $1.13 $1.14 $1.49 $0.61 $1.45 CBOD - $ / CCF 0.93 0.87 0.87 0.87 0.61 0.80 1.53 0.33 1.50 SS - $ / CCF 0.97 0.94 0.94 0.94 0.66 0.81 1.40 0.36 1.36 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total - $ / CCF $3.45 $3.43 $3.43 $3.43 $2.40 $2.75 $4.42 $1.29 $4.31 Customer - $ / Cust $26.91 $26.91 $26.91 $26.91 $26.91 $26.91 Total - $ / Cust $60.83 $57.36 $52.67 $45.65
Total - $ / CCF $6.18 $6.46 $7.01 $8.35 $2.89 $3.52 $4.80 $3.54 $4.32 Current Average Revenues $6.04 $6.27 $6.96 $8.35 $2.73 $3.50 $4.96 $3.57 $3.95 Customer Data
Volume 15,166,003 9,109,792 790,216 1,981,849 136,240 1,375,032 381,904 261,491 1,129,479 Customer 128,496 85,480 8,763 30,219 206 3,261 449 92 26 ADA 57,886 57,886
High Strength Schools
Single Family
& Condo Multi-Family Apartments Low Strength
Medium
Strength
Residential Commercial/Institutional
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Residential
Present
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Base Charge
Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
Proposed
DRAFT ATTACHMENT A
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $55.68 $57.36 $1.68 3.0%
2 55.68 57.36 1.68 3.0%
4 55.68 57.36 1.68 3.0%
6 55.68 57.36 1.68 3.0%
8 55.68 57.36 1.68 3.0%
10 55.68 57.36 1.68 3.0%
12 55.68 57.36 1.68 3.0%
14 55.68 57.36 1.68 3.0%
16 55.68 57.36 1.68 3.0%
Non-City Customer
0 $50.77 $52.30 $1.53 3.0%
2 50.77 52.30 1.53 3.0%
4 50.77 52.30 1.53 3.0%
6 50.77 52.30 1.53 3.0%
8 50.77 52.30 1.53 3.0%
10 50.77 52.30 1.53 3.0%
12 50.77 52.30 1.53 3.0%
14 50.77 52.30 1.53 3.0%
16 50.77 52.30 1.53 3.0%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $55.68 City Customer $57.36
Non-City Customer 50.77 Non-City Customer 52.30
Consumption Charge $ / CCF Consumption Charge $ / CCF
Consumption $0.00 Consumption $0.00
Difference
Present Rates
City of Stockton
Wastewater Rate Study
Single Family & Condo - Year 1 Rates
Year 1 Rates
DRAFT ATTACHMENT A
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $52.45 $52.86 $0.41 0.8%
5 52.45 52.86 0.41 0.8%
10 52.45 52.86 0.41 0.8%
15 52.45 52.86 0.41 0.8%
20 52.45 52.86 0.41 0.8%
25 52.45 52.86 0.41 0.8%
30 52.45 52.86 0.41 0.8%
35 52.45 52.86 0.41 0.8%
40 52.45 52.86 0.41 0.8%
Non-City Customer
0 $47.05 $47.42 $0.37 0.8%
5 47.05 47.42 0.37 0.8%
10 47.05 47.42 0.37 0.8%
15 47.05 47.42 0.37 0.8%
20 47.05 47.42 0.37 0.8%
25 47.05 47.42 0.37 0.8%
30 47.05 47.42 0.37 0.8%
35 47.05 47.42 0.37 0.8%
40 47.05 47.42 0.37 0.8%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $52.45 City Customer $52.86
Non-City Customer 47.05 Non-City Customer 47.42
Consumption Charge $ / CCF Consumption Charge $ / CCF
Consumption $0.00 Consumption $0.00
Present Rates Year 1 Rates
City of Stockton
Wastewater Rate Study
Multi-Family - Year 1 Rates
Difference
DRAFT ATTACHMENT A
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $47.57 $47.57 $0.00 0.0%
5 47.57 47.57 0.00 0.0%
10 47.57 47.57 0.00 0.0%
15 47.57 47.57 0.00 0.0%
20 47.57 47.57 0.00 0.0%
25 47.57 47.57 0.00 0.0%
30 47.57 47.57 0.00 0.0%
35 47.57 47.57 0.00 0.0%
40 47.57 47.57 0.00 0.0%
Non-City Customer
0 $41.75 $41.75 $0.00 0.0%
5 41.75 41.75 0.00 0.0%
10 41.75 41.75 0.00 0.0%
15 41.75 41.75 0.00 0.0%
20 41.75 41.75 0.00 0.0%
25 41.75 41.75 0.00 0.0%
30 41.75 41.75 0.00 0.0%
35 41.75 41.75 0.00 0.0%
40 41.75 41.75 0.00 0.0%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $47.57 City Customer $47.57
Non-City Customer 41.75 Non-City Customer 41.75
Consumption Charge $ / CCF Consumption Charge $ / CCF
Consumption $0.00 Consumption $0.00
Present Rates Year 1 Rates
City of Stockton
Wastewater Rate Study
Apartments - Year 1 Rates
Difference
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Commercial/Institutional
Present
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Base Charge
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge
Com / Inst - Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81 Com / Inst - Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21 Com / Inst - High Strength 4.54 4.42 4.60 4.78 4.97 5.17 Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
Proposed
DRAFT ATTACHMENT A
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
10 49.03 50.91 1.88 3.8%
20 71.23 74.91 3.68 5.2%
30 93.43 98.91 5.48 5.9%
40 115.63 122.91 7.28 6.3%
50 137.83 146.91 9.08 6.6%
60 160.03 170.91 10.88 6.8%
70 182.23 194.91 12.68 7.0%
80 204.43 218.91 14.48 7.1%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
10 45.76 47.63 1.87 4.1%
20 67.96 71.63 3.67 5.4%
30 90.16 95.63 5.47 6.1%
40 112.36 119.63 7.27 6.5%
50 134.56 143.63 9.07 6.7%
60 156.76 167.63 10.87 6.9%
70 178.96 191.63 12.67 7.1%
80 201.16 215.63 14.47 7.2%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Consumption $ / CCF Consumption $ / CCF
Consumption $2.22 Consumption $2.40
Present Rates
Difference
City of Stockton
Wastewater Rate Study
Com / Inst - Low Strength - Year 1 Rates
Proposed Rates
DRAFT ATTACHMENT A
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
10 53.83 54.41 0.58 1.1%
20 80.83 81.91 1.08 1.3%
30 107.83 109.41 1.58 1.5%
40 134.83 136.91 2.08 1.5%
50 161.83 164.41 2.58 1.6%
60 188.83 191.91 3.08 1.6%
70 215.83 219.41 3.58 1.7%
80 242.83 246.91 4.08 1.7%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
10 50.56 51.13 0.57 1.1%
20 77.56 78.63 1.07 1.4%
30 104.56 106.13 1.57 1.5%
40 131.56 133.63 2.07 1.6%
50 158.56 161.13 2.57 1.6%
60 185.56 188.63 3.07 1.7%
70 212.56 216.13 3.57 1.7%
80 239.56 243.63 4.07 1.7%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Consumption $ / CCF Consumption $ / CCF
Consumption $2.70 Consumption $2.75
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Com / Inst - Medium Strength - Year 1 Rates
Difference
DRAFT ATTACHMENT A
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
15 94.93 93.21 (1.72) -1.8%
30 163.03 159.51 (3.52) -2.2%
45 231.13 225.81 (5.32) -2.3%
60 299.23 292.11 (7.12) -2.4%
75 367.33 358.41 (8.92) -2.4%
90 435.43 424.71 (10.72) -2.5%
105 503.53 491.01 (12.52) -2.5%
120 571.63 557.31 (14.32) -2.5%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
15 91.66 89.93 (1.73) -1.9%
30 159.76 156.23 (3.53) -2.2%
45 227.86 222.53 (5.33) -2.3%
60 295.96 288.83 (7.13) -2.4%
75 364.06 355.13 (8.93) -2.5%
90 432.16 421.43 (10.73) -2.5%
105 500.26 487.73 (12.53) -2.5%
120 568.36 554.03 (14.33) -2.5%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Consumption $ / CCF Consumption $ / CCF
Consumption $4.54 Consumption $4.42
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Com / Inst - High Strength - Year 1 Rates
Difference
DRAFT ATTACHMENT A
Present Proposed
# of ADA's Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
100 156.83 155.91 (0.92) -0.6%
200 286.83 284.91 (1.92) -0.7%
300 416.83 413.91 (2.92) -0.7%
400 546.83 542.91 (3.92) -0.7%
500 676.83 671.91 (4.92) -0.7%
600 806.83 800.91 (5.92) -0.7%
700 936.83 929.91 (6.92) -0.7%
800 1,066.83 1,058.91 (7.92) -0.7%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
100 153.56 152.63 (0.93) -0.6%
200 283.56 281.63 (1.93) -0.7%
300 413.56 410.63 (2.93) -0.7%
400 543.56 539.63 (3.93) -0.7%
500 673.56 668.63 (4.93) -0.7%
600 803.56 797.63 (5.93) -0.7%
700 933.56 926.63 (6.93) -0.7%
800 1,063.56 1,055.63 (7.93) -0.7%
Base Charge $ / Acct. Base Charge $ / Acct.
City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Avg Daily Attendance $ / ADA Avg Daily Attendance $ / ADA Avg Daily Attendance $1.30 Avg Daily Attendance $1.29
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Schools - Year 1 Rates
Difference
DRAFT ATTACHMENT A
City of Stockton
Wastewater Rate Study
Industrial
Present
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Admin / Stand-by Charges
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40
BOD 140.13 153.25 159.38 165.76 172.39 179.29
SS 102.88 112.51 117.01 121.69 126.56 131.62
O&M (Consumption) Charges
Flow $748.52 $818.59 $851.33 $885.38 $920.80 $957.63
BOD 52.14 57.02 59.30 61.67 64.14 66.71
SS 83.45 91.26 94.91 98.71 102.66 106.77
Proposed
DRAFT ATTACHMENT A
Flow BOD SS Present Proposed
(MG) (1,000 lbs.) (1,000 lbs.) Rates Rates $ %
0 0 0 $26.83 $26.91 $0.08 0.3%
1 5 2 2,974.16 3,250.15 275.99 9.3%
2 10 4 5,921.49 6,473.39 551.90 9.3%
3 15 6 8,868.82 9,696.63 827.81 9.3%
4 20 8 11,816.15 12,919.87 1,103.72 9.3%
5 25 10 14,763.48 16,143.11 1,379.63 9.3%
6 30 12 17,710.81 19,366.35 1,655.54 9.3%
7 35 14 20,658.14 22,589.59 1,931.45 9.3%
8 40 16 23,605.47 25,812.83 2,207.36 9.4%
9 45 18 26,552.80 29,036.07 2,483.27 9.4%
10 50 20 29,500.13 32,259.31 2,759.18 9.4%
11 55 22 32,447.46 35,482.55 3,035.09 9.4%
12 60 24 35,394.79 38,705.79 3,311.00 9.4%
13 65 26 38,342.12 41,929.03 3,586.91 9.4%
14 70 28 41,289.45 45,152.27 3,862.82 9.4%
15 75 30 44,236.78 48,375.51 4,138.73 9.4%
16 80 32 47,184.11 51,598.75 4,414.64 9.4%
17 85 34 50,131.44 54,821.99 4,690.55 9.4%
18 90 36 53,078.77 58,045.23 4,966.46 9.4%
Admin / Stand-by Charges $ / Unit Admin / Stand-by Charges $ / Unit Base Charge $26.83 Base Charge $26.91
Flow 864.80 Flow 945.76
BOD 140.13 BOD 153.25
SS 102.88 SS 112.51
O&M (Consumption) Charges $ / Unit O&M (Consumption) Charges $ / Unit Flow $748.52 Flow $818.59
BOD 52.14 BOD 57.02
SS 83.45 SS 91.26
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Industrial - Year 1 Rates
Difference
DRAFT ATTACHMENT A
Resolution No.
STOCKTON CITY COUNCIL
ADOPT A RESOLUTION AUTHORIZING A PUBLIC HEARING TO CONSIDER ADJUSTMENTS IN THE CITY’S WASTEWATER RATES AND CHARGES AND
AUTHORIZING AND DIRECTING THE CITY MANAGER TO MAIL A NOTICE OF THE
PUBLIC HEARING TO CONSIDER THE PROPOSED ADJUSTMENTS
On August 22, 2023, by Resolution 2023-08-22-1214, the City Council approved a professional services contract with HDR Engineering, Inc., to evaluate the Wastewater Utility’s revenue requirements, prepare a cost-of-service analysis, and design rates that proportionately allocate the costs of providing wastewater service among all customer classes and customers within each class; and
The Wastewater Rate Study used three interrelated analyses to address the adequacy and equity of the utility's rates. These three analyses were the revenue requirement analysis, which compares the revenues to the expenses of the utility to determine the overall rate adjustments required; the cost-of-service analysis, which allocates the revenue requirement to the various customer classes of service in a fair and equitable manner; and the rate design analysis, which considers both the level and structure of the rate design to collect the target level of revenue; and Based on the analyses, the Municipal Utility Department’s (MUD) proposed wastewater rates have been developed to meet the legal requirements of the California Constitution Article XIII D, Section 6 (Article XIII D), commonly referred to as Proposition 218. A key component of Article XIII D requires that the wastewater rates may not exceed the cost of providing wastewater service. Likewise, Article XIII D determines that the amount of the wastewater service charge levied upon any parcel or person shall not exceed the proportional cost of the service attributable to the parcel. The revenue requirements for the wastewater utility are allocated to the different customer classes based on the respective volume and strength of sewer discharge produced, and customer group. The rate design reflects the revenue requirement findings, meets the City’s goals and objectives, is cost-based and equitably and proportionately distributed among all the customer classes; and
On August 7, 2024, and August 8, 2024, the Draft Wastewater Rate Study (Attachment A) and proposed rate adjustments were presented to the Water Advisory Group and Council Water Committee, respectively. Following the Water Advisory Group’s recommendation, the Council Water Committee approved forwarding the proposed wastewater rate increases to City Council for consideration and to proceed with the Article XIII D notice and Public Hearing process; and
The City of Stockton will conduct a public information session in September 2024, to provide information to interested members of the public regarding the proposed rate increases and the Article XIII D process. This session will be recorded and posted on the City’s website; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Manager is authorized and directed to mail a notice of a Public Hearing to consider the adoption of proposed increases to the City's wastewater rates and charges. The notice shall be mailed to all City of Stockton wastewater utility customers and the record owners of property upon which the proposed wastewater rates and charges are proposed. The notice shall include the amount of the proposed wastewater rates and charges, the reasons for the proposed adjustments to the wastewater rates and, how the wastewater rates and charges were calculated, and the date, time and location of the Public Hearing to consider the proposed wastewater rates and charges.
2. The City Council authorizes the Public Hearing to be held in the future for the consideration of the proposed wastewater rates and charges. The Public Hearing shall be held at least 45 days after the notice of the public hearing has been mailed.
3. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED August 20, 2024 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
City of Stockton
Legislation Text
File #: 24-0751, Version: 1
APPROVE MOTION TO EXECUTE AN AMENDMENT TO THE STANDARD AGREEMENT WITH AXON ENTERPRISES INC. IN AN AMOUNT OF $541,632 FOR THE INTEGRATION OF FUSUS
RECOMMENDATION
It is recommended that City Council approve a motion to:
1. Authorize the City Manager to approve Standard Agreement Amendment No. 2 with Axon Enterprises Inc. (Axon), at a maximum not to exceed amount of $541,632 for the integration of FUSUS software and;
2. Authorize and direct the City Manager to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.
Summary
FUSUS is a real-time crime center integration that digests and analyzes all camera footage into operational intelligence. The platform is an open ecosystem that works with all public safety and investigations assets. It can enable video sources with artificial intelligence, integrate Automated License Plate Reader, bodycam, drone and aircraft feeds using existing equipment.
Funding for the Standard Agreement Amendment was included in the award for the FY 2024-25 AB 109 Funding of the Community Corrections Partnership Task Force (CCP Task Force) Motion 2024- 05-21-1208.
SPD is seeking Council approval to expand the current Axon contract to integrate FUSUS in an amount not to exceed $541,632.
DISCUSSION
Background
On May 21, 2024, Council approved by motion 2024-05-21-1208, the San Joaquin County CCP Task Force funding of $3,537,691. In addition to the annual request for materials and supplies to operate the task force, funding for software, including FUSUS was approved to create more efficient pursuits of those committing crimes and analyzing crime trends. Enhancing our current Axon contract, FUSUS will provide a platform that will fill critical information gaps in public safety with a network of intelligent, connected devices that enable faster response times and greater operational intelligence through live maps, livestreaming capabilities, configurable alerts, and detailed audit logs.
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File #: 24-0751, Version: 1
Present Situation
The SPD currently uses multiple data systems for its daily operations. Most of these systems are not linked and require a significant amount of time, training, and effort to cross analyze case-related data and effectively investigate crime trends. FUSUS allows the department to proactively assess and respond to public safety concerns. FUSUS allows community members to provide their video footage to law enforcement through a portal. Using advanced machine learning and analytics, FUSUS can be used to search video footage for specific vehicle types, markings on vehicles, specific clothing worn by persons, or items carried by a person. Video footage is uploaded and stored for a period of time, allowing for investigators to use search queries for time, location, and object when conducting followup investigations.
Staff is seeking Council approval to expand the current Axon contract to integrate FUSUS in an amount not to exceed $541,632 to assist with daily operations to maximize effectiveness and efficiencies with calls for service taken by SPD’s Dispatch Center, maximizing police response to the community.
FINANCIAL SUMMARY
The proposed cost of this amendment is not to exceed the amount of $541,632, with a total contract amount of $2,515,692.25. Funding for year one of FUSUS is included in the FY 2024-25 AB109 Community Corrections Partnership Task Force Police Special Investigations software account GL # 3518-316-650002-260-261-20-35-000-000-. Future year funding requests for FUSUS will be requested through AB109 Community Corrections Partnership Task Force.
Attachment A - Axon Enterprise - Master Services and Purchase Agreement Attachment B - Axon Enterprise - Amendment 1 - Body Worn Camera Attachment C - Axon Enterprise - Amendment 2 - FUSUS
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1 (Rev. 03.21.22)
CITY OF STOCKTON
STANDARD AGREEMENT AMENDMENT
This Amendment Number ___ 2__ to the above referenced Agreement is entered into on ________________ between the City of Stockton (“City”) and Axon Enterprises Inc.
RECITALS
Section 8 Statement of Work of the Axon Master Services and Purchasing Agreement, states statement of work details Axon’s deliverables and the parties must document scope changes in a written and signed change order; and Section 8 Statement of Work of the Axon Master Services and Purchasing Agreement, states changes may require an equitable adjustment in fees or schedule and the statement of work is incorporated into this agreement by reference.
The City needs to increase the Compensation, Not to Exceed amount in Section 8 Statement of Work of the Axon Master Services and Purchasing Agreement based on original five year Q-265299-44085.925CN by $541,632 per attached quote Q-583280- 45462.630TS to add the FUSUS PRO Bundle including hardware, software, services and warranties .
Now therefore, the City and the Contractor mutually agree as follows:
1.The maximum not to exceed amount to be paid to the Contractor, including if authorized, will now read as follows:
Initial Term the maximum not to exceed amount is $1,974,060.25 Extended Term the maximum not to exceed amount is $541,632 Total maximum compensation to be paid to the Contractor under this Agreement for the initial term and the extended term shall not exceed $2,515,692.25
IN WITNESS WHEREOF, the authorized parties have executed this Agreement.
CONTRACTOR
Axon Enterprise, Inc. _____________________________________________________________________________________________ Contractor’s Name (if other than an individual, state whether a corporation, partnership, etc.): _____________________________________________________________________________________________ Authorized Signature Date _____________________________________________________________________________________________ Printed Name and Title of Person Signing _____________________________________________________________________________________________ Address
CITY OF STOCKTON
_____________________________________________________________________________________________ Harry Black, City Manager Date ATTEST: _____________________________________________________________________________________________ Katherine Roland CMC, CPMC Interim City Clerk
APPROVED AS TO FORM:
Lori M. Asuncion, City Attorney
BY:
Agreement Number: Amendment
Number:
423000063 2
ATTACHMENT C
Vendor: Date: 06/27/24
Dept: Contract/PO Number: 423000063
Account # Requestor:
$1,960,450.00
$2,515,692.25
$555,242.25
Effective Date: Dec 2, 2021 Available CCO Funding:
CM Authority: $ 100,000
D M WD CM CC
Last Council Action $0.00 $1,960,450.00
Total approved CCOs since last Council Action $13,610.25 $1,974,060.25 $1,974,060.25 $297,406.03
2 Change in Scope/Increase in Funding (FUSUS - 5 Years) $541,632.00 Y $2,515,692.25 ($244,225.98) Total CCO Amount and Time Extension To-Date -----> $555,242.25
CHANGE ORDER CALCULATOR
Description
Required
Approval by: Date CC Approved
(mm/dd/yy)
Revised
CCO No. CCO Authority Balance
Requested
CCO Amount
Revised
Contract Amount
Original Contract Amount:
Original Contract Award Date:
Original Contract Expiration Date:
Authorized CCO Amount to date:
Police Department
Axon Enterprise, Inc.
ENTRIES IN BOLD RED INDICATE
YOUR BALANCE OF CM AUTHORITY CCO AMOUNT IS EXCEEDED.
YOU MUST GO TO COUNCIL FOR APPROVAL.
AB109
PREVIOUSLY APPROVED CCOs
NEW PROPOSED CCOs
Contract Expiration to date:
Contract Amount to date:
Time Extensions