Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department.

Similar presentations


Presentation on theme: "1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department."— Presentation transcript:

1 1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department

2 What is HCF? HCF refers to Hundred Cubic Feet. Its how we measure water usage. So, what does it really mean? The average residence uses 15 HCF per month, which is… – 11,220 gallons of water, or – About 360 gallons of water per day. This is equivalent to… Slide 2 72 five-gallon water bottles Areas of usage…

3 Why the Increase in Rates? The last rate increase was in 2003, and it was less than 3%. The system on average brings in $338,000 per month less than what it costs to operate. The proposed March increase only allows us to breakeven, and the October increase lets us begin repairs. As a comparison, in February the City of Los Angeles approved an increase of 14% for residential and 12% for commercial customers. Cumulatively, rates have increased 70% since Slide 3

4 Proposed Water Rate IncreaseIssues Raised Is this a hidden tax increase? No, this is not a tax. The cost the City pays for water has continually increased, and the Citys General Fund can not subsidize the cost. There is nothing secret or hidden. The City is following Proposition 218. Notice has been sent to all water customers as prescribed by law. Furthermore, notice was published in the local newspapers and placed on the Citys Website. Finally, today is the public hearing on the matter. Slide 4

5 Proposed Water Rate IncreaseIssues Raised Is the typical residential increase 58%? No! Its 28% and 12%. While the proposed water rate increases for a typical household are approximately 28% ($14) and 12% ($6.60) over the next two fiscal years (March and October), some households may see higher rates because the new tiered rates charge low-volume users less than high-volume users. NOTE:The proposed rates are still 10% less than what Golden State Water charges, which is 57% higher than our current rate and slated to increase again in July of Slide 5

6 Monthly Residential Water Bill Comparison Slide 6

7 Water Bill Comparison: Inglewood vs. GSW Slide 7 Current February 2012 Items Inglewood Customer Golden State Customer 3/4" meter$9.00$21.40 Water Use (15 hcf)$38.35$44.48 Utility Tax / City Tax$4.74$7.16 California PUC Fee$0.00$1.07 Surcharge$0.00$5.75 Total$52.09$79.86 Proposed March 2012 Items Inglewood Customer Golden State Customer 3/4" meter$12.00$21.40 Water Use (15 hcf)$48.00$44.48 Utility Tax / City Tax$6.00$7.16 California PUC Fee$0.00$1.07 Surcharge$0.00$5.75 Total$66.00$79.86 Both consume 15 hundred cubic feet of water each month.

8 Water Bill Comparison: Inglewood vs. GSW Slide 8 Current February 2012 Items Inglewood Customer Golden State Customer 3/4" meter$9.00$21.40 Water Use (15 hcf)$38.35$44.48 Utility Tax / City Tax$4.74$7.16 California PUC Fee$0.00$1.07 Surcharge$0.00$5.75 Total$52.09$79.86 Proposed March 2012 Items Inglewood Customer Golden State Customer 3/4" meter$12.00$21.40 Water Use (15 hcf)$48.00$44.48 Utility Tax / City Tax$6.00$7.16 California PUC Fee$0.00$1.07 Surcharge$0.00$5.75 Total$66.00$79.86 Both consume 15 hundred cubic feet of water each month. $3 $10 $1.25 $14

9 Proposed Water Rates for October (FY ) Slide 9 Proposed October 2012 Items Inglewood Customer Golden State Customer 3/4" meter$13.50$23.20 Water Use (15 hcf)$52.50$55.86 Utility Tax / City Tax$6.60$8.59 California PUC Fee$0.00$1.07 Surcharge$0.00$5.75 Total$72.60$94.47 Inglewood vs. GSW $6.60

10 In general, the area north of Century Blvd., is served by the City, and south of Century Blvd., is served by Golden State Water. Slide 10

11 Comparisons Inglewood Rates vs. Golden State Water (GSW) Rates Slide 11 Inglewood Current Inglewood March 2012 Inglewood October 2012 GSW Current GSW Proposed

12 Proposed Water Rate IncreaseIssues Raised We need to defer some of these water system upgrades for a few more years until the economy picks up. This is not prudent nor advisable. This would be catastrophic depending on transmission or distribution line failure and could result in non-availability of water for several days. Additionally, since most of the pipes are 40 to 50 years old and far beyond their useful life, water quality is a big concern. Slide 12

13 Proposed Water Rate IncreaseIssues Raised The money required to build the wells can be used from the $8 million water reserve account and the $2.1 million current 2011/2012 budget line item for design and construction of two (2) wells. There is no $8 million water reserve account. There was a beginning fiscal year fund balance of $6 million. If no rate increase is approved, there will be a deficit of $3.4 million by September 30, Slide 13

14 Proposed Water Rate IncreaseIssues Raised The City sold 2,000 acre feet of water rights at $70 per acre foot, and we are buying water at $964 per acre foot resulting in a loss of $1.8 million. This is not a valid comparison. The water rights lease at $70 per acre foot is for raw water from the ground. The costs to pump it, treat it (e.g., make it usable), and transport to your home are not included. The City pumps, treats, and transports water at a cost of $700 per acre foot. Without the necessary infrastructure, the City is forced to buy water at a higher price. Slide 14

15 Water System Condition – Water pipelines and fittings were built in 1940 – – We have exceeded the expected life of pipes and fittings. – 30 miles of pipes are cast iron and need to be replaced. – Water breaks occur in each area due to aging pipes. – Leaks in different areas result in city water losses. – We need to do pipeline replacement in conjunction with street projects. Slide 15

16 Example: Leaking Pipe Slide 16

17 Pipe After Extraction Slide 17

18 Water System Improvement Plan – Additional technologies are required to improve the system. – Improvement projects are outlined in the water master plan. Conservation – Replacement and improvement projects are needed to meet the water conservation plan in 2015 and – Defective pipes, fittings, meters and other water transmission- related items will increase water losses. Slide 18

19 Sewer System Overview Built in the 1920s. We have exceeded the expected life of the sewer pipes. Some pipe segments are lined but many areas have big cracks and holes, and need to be replaced. Approximately 150 miles of sewer pipe and 3,635 manholes need improvement. City spends an average of $1 million a year to maintain the system. Slide 19

20 Questions Slide 20


Download ppt "1 City of Inglewood Water and Sewer Rate Discussion Operating Plans and Rates Public Works Department."

Similar presentations


Ads by Google