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HomeMy WebLinkAboutMinutes - March 26, 2013 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MARCH 26, 2013 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, March 26, 2013, commencing at 7:00 a.m. Present: Council Member Hansen, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Katzakian, and Mayor Nakanishi Absent: None Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl B. Topic(s) B-1 Receive Information Regarding Multiple Family and Non -Residential Water Meter Program DPW) Public Works Director Wally Sandelin provided a PowerPoint presentation regarding the multi- family and non-residential water meter program. Specific topics of discussion included state law, multiple -family meter program, meter charge alternatives, right sizing meters, vacant utility rate, common areas metered service, condominium properties and survey, apartment properties and survey, mobile home park properties and survey, comparison billing examples, specific apartment, duplex and mobile home park address locations, implementation, fire suppression, impact properties, billing methods, California cities survey, and billing recommendation and alternative. In response to Council Member Hansen, Mr. Sandelin stated the difference between a private main and a public main is that the public main is owned and located in the public right-of-way or in an easement as opposed to being privately -owned. In response to Council Member Mounce, Mr. Sandelin confirmed that the $300 cost for water meters previously approved was for single-family residential homes and the meter cost for multi- family residences has not yet been set by the Council. In response to Council Member Hansen, Mr. Sandelin stated the "purchase price" shown on the slide reflects the cost to the City for meter and accessories and the "installed price" includes the total cost to the City. In response to Mayor Nakanishi, Mr. Sandelin stated he is not sure if the comparison costs include a profit margin as that level of detail was not provided. In response to Mayor Nakanishi, Mr. Sandelin stated the price for six inches is not listed because there are no six-inch mains in the City at the current time although there may be in the future. In response to Council Member Hansen, Mr. Sandelin stated the average life expectancy of a meter for multi -family residential is approximately 15 to 20 years and there are some meters in the City that are currently under reading that require replacement. In response to Council Member Hansen, Mr. Sandelin stated the vacant base rate is applicable to only those units that are truly vacant and not using any water. Continued March 26, 2013 In response to Council Member Johnson, Mr. Sandelin stated the tracking mechanism for vacant units is based on when a new tenant connects service and a departing tenant disconnects service. In response to Council Member Mounce, Mr. Bartlam stated one of the questions to be considered by the Council is how charges for common areas in multi -family residences, such as laundry and landscaping, will be assessed. In response to Council Member Hansen, Mr. Sandelin stated some multi -owner condominium complexes have individual service allowing for the installation of individual meters. Mr. Sandelin and Mr. Bartlam confirmed that some homeowners associations are currently assessing the master -metered charge through its homeowners dues for condominiums. In response to Council Member Mounce, Mr. Bartlam stated the conservation intent may not be realized in larger complexes with multiple owners and tenants without an ability to individually meter each unit. In response to Council Member Hansen, Mr. Sandelin stated apartments around the country built after 1982 are generally set up with individual metering or sub -metering. In response to Council Member Hansen, Mr. Sandelin stated eight -inch mains that already exist due to fire hydrants for flow purposes will remain although they may be charged less based on the actual right sizing of the pipe. In response to Council Member Mounce, Mr. Sandelin confirmed that the price for individual meters for multi -family residential, including mobile home parks, has not yet been decided. In response to Council Member Mounce, Mr. Sandelin stated the usage charge shown on the Sand Creek example slide reflects actual usage only and does not include a base rate. In response to Mayor Nakanishi, Mr. Sandelin confirmed that a tenant will see no difference in the charged amount and will continue to pay for actual usage regardless of whether it is billed to the tenant directly or through the property owner. In response to Council Member Mounce, Mr. Sandelin stated the multi -family residential group is approximately 2,500, or 10% of all users, and will therefore not affect the bottom line greatly. Mr. Sandelin stated there may be excess revenue in 2022, which could be used to pay off debt service, make-up a difference, or reduce rates. In response to Council Member Johnson, Mr. Sandelin stated staff could work on only charging actual usage on flush and flow test days for privately -owned fire hydrants since it is a standard procedure required by law. In response to Mayor Nakanishi, Mr. Sandelin stated sub -metering is paid for by the property owner and the approximate cost is $250. In response to Council Member Hansen, Mr. Sandelin stated approximately 4% of the total number of apartment buildings and mobile home parks currently have sub -metering. In response to Mayor Nakanishi, Mr. Sandelin stated Stockton bills the property owners directly with a master meter. The following individuals spoke in support of the City billing the tenant directly to adequately reflect actual usage and conservation efforts: Catherine Brown, Ray Lunning, Dustin Totten, and N Continued March 26, 2013 Nancy Watt. In response to Council Member Hansen, Mr. Sandelin stated existing plumbing for apartment buildings in the City varies and the majority of properties have only one service line that covers everything including common areas. In response to Council Member Hansen, Mr. Sandelin stated he is unsure of whether Lodi is the only remaining city in the County currently on a flat -rate system and other cities are generally billing the property owner who then bills the tenant separately or includes the cost in the rental amount. Mr. Sandelin confirmed that Casa de Lodi had two 8 -inch mains installed and is utilizing the master meter concept. Mr. Bartlam stated apartment complexes and mobile home parks traditionally pay the least amount due to their density levels. A brief discussion ensued amongst the City Council, Mr. Bartlam, and Mr. Sandelin regarding reviewing additional options for billing tenants directly and the timing for implementing the program. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:30 a.m. ATTEST: Randi Johl City Clerk AGENDA ITEM 8 **' ga CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Information Regarding Multiple Family and Non -Residential Water Meter Program MEETING DATE: March 26, 2013 (Shirtsleeve Session) PREPARED BY: Public Works Director RECOMMENDED ACTION: Receive information regarding multiple family and non-residential Water Meter Program. BACKGROUND INFORMATION: At the October 23, 2012 Shirtsleeve City Council meeting, information was previewed in advance of public meetings to be held with property owners of apartments, condominiums, and mobile home parks. A public meeting was held on March 14, 2013 with property owners of apartments and condominiums and on March 19, 2013 with property owners of mobile home parks. Over 1,500 invitations to the public meetings were sent to property owners, homeowner associations, property management companies, and tenants. The following provides a summary of comments and questions presented at the public meetings. Invitations to this Shirtsleeve meeting have been sent to all attendees. March 14, 2013 — Apartments and Condominiums There were approximately 40 persons in attendance. Some of the comments and questions are re -stated below. 1. Why do we need to install meters now? 2. What will be the metered condition at my specific property? 3. It will be a lot of work for me to charge each tenant and collect from each tenant for their water use. 4. The City can continue to issue flat rate water bills to each unit. 5. The homeowner association is unable to raise sufficient funds to pay the property's water bill. 6. Seven comment cards were received from attendees requesting individual follow-up meetings or additional site-specific information. Copies of the comment cards are provided in Exhibit A. March 19 2013 — Mobile Home Parks There were approximately 20 persons in attendance. Some of the comments and questions are re -stated below. 1. The City has always billed the tenants for water, wastewater and refuse. Is this the first step toward assigning to the property owner the obligation to pay for these utilities? 2. What is the staff recommendation for charging the tenants for their water usage that is proposed to be transferred to the property owners? 3. What is the planned implementation schedule for this transition to occur? APPROVED: "lKohradt Bartlam, City Manager KAWP\PROJECTS\WATERWIeters\Non Res Multi Fam Installation\CShirtsleeve 3-26-13.doc 3/20/2013 Receive Information Regarding Multiple Family and Non -Residential Water Meter Program March 26, 2013 (Shirtsleeve Session) Page 2 4. The usage at a couple of the mobile home parks appears to be low, and we request that you check the usage numbers. 5. No comment cards were received at this public meeting. The following topics will be covered during the Shirtsleeve presentation. For each, staff's recommendation is provided. The discussion is intended to apply to apartment, condominium, and mobile home park properties, although most of the same issues will be present for commercial and industrial properties. j A. Property owner water meter charges — The alternatives for charging the property owner for their water meter range from simply the purchase price of the meter assembly up to the full cost for purchase and installation of the meter assembly. Staff recommends setting the charge, similar to the charge for the residential meters, at the purchase price of the meter assembly (meter, register and ERT) plus 55% for the meter box, lid and a portion of the installation cost. The full range of alternative pricings is provided in Exhibit B. B. Right -sizing water meters — Determining the correct size of the meter required to serve a particular property is part experience, science and confirmation after installation. The automated meter reading system contains a module that will analyze peak hourly, diurnal and daily water use information. Once a meter larger than 3/ inches in size is installed, staff will analyze the meter readings and confirm the proper size meter has been installed. Change out of the meter equipment will be made as necessary during the year when comparative billing information is provided to the property owner. Changing the meter will not materially affect the comparative billing information. C. Monthly base charge for oversized meters — There are a few apartment and condominium properties that will require oversized meters due to the presence of fire hydrants on the internal distribution pipelines. This may also be the case for some commercial and industrial properties. This is certainly the case for one mobile home park where two 8 -inch meters have been installed. Staff recommends, in the case where oversized meters are required, the property owner meter charge and the monthly base charge be based upon the right -sizing analysis discussed in B. above. D. Vacant unit water and wastewater charge — Staff recommends the vacant unit water and wastewater utility charge for residential customers without a metered service be equal to the monthly base charge for metered customers having the same size of meter in their future service. There would not be a specific vacant unit charge for the following customer classes as explained. • Vacant..single family detached with meter — customers would pay the monthly base rate and presumably there would be no usage and, therefore, no usage charge. • Vacant single family attached (duplex, triplex, fourplex — master meter) — customers would pay the monthly base rate and usage charges for the occupied units. • Vacant single family attached (duplex, triplex, fourplex — individual meter) — customers would pay the monthly base rate and presumably there would be no usage and, therefore, no usage charge. • Vacant apartment/condominium (master meter) — customers would pay the monthly base rate and usage charges for the occupied units. • Vacant apartment/condominium (individual meter) — customers would pay the monthly base rate and presumably there would be no usage and, therefore, no usage charge. K:\WP\PROJECTS\WATER\Meters\Non Res Multi Fam Installation\CShirtsleeve 3-26-13.doc 3/20/2013 Receive Information Regarding Multiple Family and Non -Residential Water Meter Program March 26, 2013 (Shirtsleeve Session) Page 3 • Vacant mobile home (master meter) — customers would pay the monthly base rate and usage charges for the occupied units. E. Water and Wastewater charges for common area meters — Within an apartment or condominium property there are common areas with landscape, pool, meeting room, laundry and other facilities: In some cases, a meter may only service landscape areas and, therefore, there should not be a wastewater charge associated with that meter. In other cases, where the meter services facilities that generate wastewater, there should be a wastewater charge associated with that meter. Staff recommends, at the time of meter installation, the common landscape area meters will be coded to reflect their exclusion from paying wastewater charges. F. Comparison billing examples — A series of billing comparisons for apartment, duplex and mobile home park properties is provided in Exhibit C. In all cases, the total usage based monthly charges are less than the current cumulative total of the flat rate water billing to the individual tenants. G. Implementation of usage based billing to mobile home park properties — Staff recommends that usage based water billing to mobile home parks begin in January 2014. City of Lodi forces installed water meters in 2012 on all water services to the seven mobile home park properties in Lodi. The comparative billing information was provided to the mobile home park property owners at the recent public meeting and will continue to be provided through the rest of 2013. One missing piece of information important to these property owners is the charge for the water meter purchase and the payment terms. This implementation schedule allows sufficient time to adjust rents by the property owner. State law requires delivery of usage based billing following one year of comparative billing information. H. Implementation of usage based billing to apartments and condominium properties — Few water meters have been installed on water services to these properties. The installation is scheduled to begin in 2013 and conclude in 2014. Staff recommends that usage based billing to apartment and condominium properties with master metering arrangements begin in January 2016. In the 2015 year, comparative billing information will be provided. Extra transition time to usage based billing is recommended to allow for homeowner associations to adopt and implement new dues structures for these organizations. I. Water conservation plan — Staff is developing a water conservation incentive program patterned after those by other cities and the Lodi Electric Utility conservation program. A list of water conserving practices has been prepared and is provided in Exhibit D. Copies have been distributed at the public meetings. J. Fire protection water usage charge — Staff recommends that property owners not be charged for water used .to suppress structure fires. This would not include water discharged in the process of flushing or flow testing onsite fire hydrants, which is a maintenance activity. K. Recommended master meter billing solution — The simplest solution to transition from flat rate billing at the tenant level to a usage based billing at the property-owner/homeowners association level is to include the tenants' water cost in the rent. The simplest approach is to increase the tenant monthly rent by the amount of the current flat water rate charge (1 bedroom = $25.67 and 2 bedroom = $30.79). As presented in F. above, this results in a net increase in revenue to the property owner. KAWP\PROJECTS\WATER\Meters\Non Res Multi Fam Installation\CShirtsleeve 3-26-13.doc 3/2 012 01 3 Receive Information Regarding Multiple Family and Non -Residential Water Meter Program March 26, 2013 (Shirtsleeve Session) Page 4 After meter installation, comparative billing information will be provided to the owner of the master meter(s). This could be the property owner or property manager of an apartment property or the homeowners association representing a condominium or townhome property. The information provided will enable an informed decision as to the amount of the rent increase needed to cover the additional cost to the owner of the master meter and the usage based water bill. L. Property owner alternative billing solution — State law requires the City issue a usage based water bill to the customer with a service connection on which a meter has been installed. It is proposed that the metered customer would not pay the above mentioned water bill and that the City continue to issue flat rate water bills to tenants. At the end of the year, the City would issue either a credit to the tenants (assuming there has been an overcharge as presented in F. above) or issue a true -up bill to the property owner for any underpayment. This represents a substantial amount of work for the City in consideration of the fact there 4,358 apartment units and 1,117 condominium units in Lodi. Every month's bill would need to be processed twice — once for the charge and again to process the rebate. This is further complicated by tenant turnover and service terminations during the year. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. F. Wally S66delin Public Works Director FWS/pmf Attachments KAWP\PROJECTS\WATER\Meters\Non Res Multi Fam Installation\CShirtsleeve 3-26-13.doc 3/20/2013 Comment Card Today's Date: 3- Name: Addres Phone Email : Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 Comment Card Today's Date• � L Comments: Name: Addre& Phone # Email : Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 Comment Card Today's Dat Name: ,m d a-,,, Address : —1 -'S 4 r3 p a UA V� Phone #: �J:ao 0—a _ Email: Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 Comment Card Today's Date: V% 15 Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 i� Today's Date: Comments: Comment'Card 06. V -rYV Di�� e c..• Name • 1 r% Address : 1'7 I -2— e, f3�k Phone # • D Email Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 Comment Card Today's Date: l //3 Comments: _P4615L RE CL9/v51bIE R PSILL I,✓g T6r410- d6q�),-FCPI jIq'wv F Name: Addres Phone Email : ow 1 To Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 Comment Card Today's Date: 511 q l r 3 Comments: II I) g� JY► i i -S Z d n6vv�o. YJw I Y%, I OLMj 04-2- Cows, : AA 1,V,d V4X r l +IeC5 3, I 5 ex- ...can, _.YX r fir. KAVC—. o,. - 5�rvi:ce T Name: 1 c < <h) 1P S Address Phone # : .,;kO9 Email Please mail comment card to: City of Lodi Public Works Department P. O. Box 3006 Lodi, CA 95241-1910 Exhibit B Meter Charge Alternatives Meter Size Capacity Factor Purchase Price Capacity Based Price Based Installed Cost Lodi Fee Schedule Santa Clara Fee Schedule 3/4 1 $194 $300 $300 $940 400 370 1 1.67 $226 $500 $350 $1,415 480 365 1 'h 3.33 $506 $1,000 $780 $3,810 745 1,565 2 5.33 $624 $1,600 $1,105 $5,715 930 1,730 3 10 $1,381 $3,000 $2,140 $5,950 N/A 2,065 4 16.67 $2,488 $5,000 $3,860 N/A N/A 4,130 6 33.33 $4,711 $10,000 $7,300 N/A N/A 6,750 8 53.33 $8,027 $16,000 $12,440 N/A N/A 10,670 K:\WP\PROJECTS\WATER\Meters\Non Res Multi Fam Installation\CShirtsleeve Exl.doc 03/20/2013 Month Meter Size CF Usage Comparison Charge Meter Size CF Usage Comparison Charge Flat Rate Billed Amt Difference Mar -13 8 8 34800 $576.07 $6,160.80 $5,584.73 Feb -13 8 130500 $1,456.51 8 32600 $555.83 $6,160.80 $4,148.46 Jan -13 8 116000 $1,323.11 8 35900 $586.19 $6,160.80 $4,251.50 Dec -12 8 107500 1 $1,217.17 1 8 134800 $562.87 1 $6,009.601 $4,229.56 Nov -12 8 129900 $1418.77 8 50700 $705.97 $6,009.60 $3,884.86 Oct -12 8 140462 $1,513.82 8 89700 $1,056.97 $6,009.60 $3,438.81 Se -12 8 145144 $1,555.96 8 82300 $990.37 $6,009.60 $3,463.27 Aug -12 8 140462 1 $1,513.82 1 8 190600 $1,065.07 1 $6,009.60 $3,430.71 Jul -12 8 149826 $1,598.10 8 99000 $1,140.67 $6,009.60 $3,270.83 Jun -12 8 140462 $1,513.82 8 89239 $1,052.82 $6,009.60 $3,442.95 May -12 8 191964 $1,977.35 8 69161 $872.12 $6,009.60 $3,160.14 03/20/2013 2 03/20/2013 Month Meter Size CF Usage Comparison charge Flat Rate Billed Amt Difference Mar -13 3 51300 $577.34 $2,181.95 $1,604.61 Feb -13 3 41100 $483.50 $2,181.95 $1,698.45 Jan -13 3 44800 $517.54 $2,181.95 $1,664.41 Dec -12 3 43800 $497.01 $2,128.40 $1,631.39 Nov -12 3 56500 $611.31 $2,128.40 $1,517.09 Oct -12 3 77000 $795.81 $2,128.40 $1,332.59 Se -12 3 84271 $861.25 $2,128.40 $1,267.15 Au -12 3 102329 $1,023.77 $2,128.40 $1,104.63 03/20/2013 51 Month Meter Size CF Usage Comparison Charge Meter Size CF Usage Compariso n charge Flat Rate Billed Amt Difference Mar -13 2 8200 $150.71 11/2 217 $62.24 $1103.81 $890.86 Feb -13 2 8280 $151.45 11/2 239 $62.44 $1,103.81 $889.93 Jan -13 2 8210 $150.80 11/2 194 $62.02 $1,103.81 $890.98 Dec -12 2 9520 $159.11 11/2 198 $60.55 $1076.72 $857.06 Nov -12 2 11800 179.63 11/2 279 61.28 1,076.72 835.81 Oct -12 2 13310 $193.22 11/2 405 $62.42 $1,076.72 $821.09 Se -12 2 12220 $183.41 1 1/2 528 $63.52 $829.79 Au -12 2 13890 $198.44 1 1/2 574 $63.94 _$1,076.7 $1,076.72 $814.34 03/20/2013 5 Eas Ways to Reduce Water Use Indoors — Year Round Savings ♦ Find and fix all leaks, especially toilet leaks, replace their flappers. Install water -saving devices like low -flow showerheads and faucet aerators. Consider buying a frontloading clothes washer to save water and energy. #4 Consider buying a High Efficiency Toilet (HET), which uses 1.28 gallons or less per flush. Take advantage of Lodi's rebates on new High Efficiency Toilets, shower heads, etc. Take shorter showers, cut your shower to 4 minutes to save around 2,700 gallons per year. #4 Don't leave the water running when brushing your teeth, washing your hands, shaving, or doing the dishes. #4 Run dishwashers and clothes washers with full loads only, or adjust the water level to match the size of the load. Use the garbage disposal only if you must. Use the wastebasket, not the toilet to dispose of trash. Outdoors — Watering & Gardening ♦ Attach a nozzle with a shutoff valve to the end of your hose. Apply water only as fast as the soil can absorb it. If you notice runoff, divide the watering time into two cycles to allow the water time to soak in. Consider installing drip irrigation to apply water slowly and directly to the roots of the plants. ♦ Water your garden in the morning to give the water time to soak into the ground before wind and the heat of the sun cause it to evaporate. Water to the depth of the plant roots (about 6 inches for lawns, 9 inches for ground cover, 12 inches for shrubs, and 18-24 inches for trees). City of Lodi http://www.lodi.gov/public works/water conservation. htm1 1331 S. Ham Lane, Lodi CA 95242 209-333-6740 R:\GROUP\WWW\Water Cons\Water Conservation Tips.doc 03/12/2013 Use a soil probe (or dig down in the plant's root area using a trowel) to determine if you are watering properly. Water your garden only when it needs it. It is time to water the lawn when it doesn't spring back when walked on. Aim your sprinklers to water your garden, not the sidewalk or other paved areas and check your sprinkler system for problems regularly. ♦ Adjust your watering schedule with the weather and the season. If you have an automatic system, remember to turn it off in the winter. Plant water -conserving plants. Group thirsty plants together, away from un -thirsty ones and adjust your watering schedule as your garden matures. Newly planted landscapes need water more frequently than mature ones. Improve your soil by incorporating organic matter. This aerates your soil, and improves its ability to hold water. Prevent weeds from stealing water from your garden by pulling them promptly and applying mulch regularly. Mow grasses higher, between 3 to 4 inches, to reduce water loss. #4 Fertilize less often, only in the spring and fall. Fertilizing encourages rapid plant growth and thirsty plants. California native plants don't need fertilizing. #4 Aerate the lawn by punching holes in the soil. This improves the movement of water into the root area and reduces wasteful runoff. Outdoors — Other Activities Use a broom, not a hose, to clean driveways and sidewalks. Cover pools and spas, and cut water loss by 90%. Don't let the hose run while you wash your car; use a bucket and nozzle with a shut off valve on your outside hose. City of Lodi 1331 S. Ham Lane, Lodi CA 95242 209-333-6740 R:\GROUP\WWW\Water Cons\Water Conservation Tips.doc http://www.lodi.gov/public works/water conservation. htmI 03/12/2013 The City of Lodi Public Works Engineering t°or Mr a. • ■ ■ /+ ..R1� T�1 1 Multi -Family and No7r-TkTi'dential Water Meter Program Shirtsleeve Meeting March 26, 2013 State Law 525. (a) Notwithstanding any other provision of the law, every water purveyor who sells, leases, rents, furnishes, or delivers water service to any person shall require, as a condition of new water service on and after January 1, 1992, that a suitable water meter to measure the water service shall be installed on the water service facilities in accordance with this chapter. The cost of installation of the meter shall be paid by the user of the water, and any water purveyor may impose and collect charges for those costs. 4 State Law (1) Install water meters on all municipal and industrial service connections located within its service area on or before January 1, 2025 (2) (A) Charge each customer that has a service connection for which a water meter has been installed, based on the actual volume of deliveries, as measured by the water meter, beginning on or before January 1, 2010. 4 State Law (B) Notwithstanding subparagraph (A), in order to provide customers with experience in volume - based water service charges, an urban water supplier that is subject to this subdivision may delay, for one annual season cycle of water use, the use of meter -based charges for service connections that are being converted from non - volume -based billing to volume -based billing '��-�� Multiple Family Meter Program •Apartments/Condos/Mobile Homes • One meter per parcel • Multiple meters if multiple services • Individual meters where fiscally feasible — Individual services from public main • Meter charge based upon size of meter • Installations completed end of 2014 L Size Capacity Purchase Capacity Price Installed Lodi Fee Santa Factor Price Based Based Cost Schedule Clara Fee Schedule 3/4 1 $194 $300 $300 $940 $400 $370 1 1.67 $226 $500 $350 $1415 $480 $365 1 1/2 3.33 $506 $1,000 $780 $3,810 $745 $1,565 2 5.33 $624 $1,600 $1,105 $5,715 $930 $1)730 3 10 $1)381 $3)000 $2,140 $5)950 n/a $2)065 4 16.67 $2,488 $5,000 $3,860 n/a n/a $4,130 6 33.33 $4)711 $10,000 $7,300 n/a n/a $6,750 8 53.33 $3,027 $167000 $12,440 $307500 n/a $10,670 -=Ar9 Right -Sizing Meters -Oak - ➢ Following installation ➢Analysis of usage ➢ Change out meter (if required) ➢ Credit meter charge (if required) ift Vacant Utility Rate Proposed policy ➢Flat rate residential customers — monthly service charge based upon 3/4 inch meter size ➢Metered rate single family residential customers — no vacant utility rate ➢Master metered multi -family — no vacant utility rate ➢Individual metered multi -family — no vacant utility rate ➢Monthly service charge will reduce with conservation pricing Common Areas Metered Service Proposed policy ➢Landscape areas — water charge but no wastewater ➢Facilities —water and wastewater 4 ift Comparison Billing Examples I - Sand Creek Apartments 2. Avenue West Apartments 3. Duplex 4. Casa de Lodi MHP 5. Palms MHP 6. Almond Drive Estates MHP 7. Lake Park MHP 8. Shady Acres MHP 9. Cherokee Park MHP Month Meter Size CF Usage Comparison Charge Meter CF Size Usage Comparison Charge Flat Rate Billed Amt Difference Feb -13 8 130500 $1,456.51 8 32600 $555.83 $6,160.80 $4,148.46 Jan -13 8 116000 $1,323.11 8 35900 $586.19 $6,160.80 $4,251.50 Dec -12 8 107500 $1,217.17 8 34800 $562.87 $6,009.60 $4,229.56 Nov -12 8 129900 $1,418.77 8 50700 $705.97 $6,009.60 $3,884.86 Oct -12 8 140462 $1,513.82 8 89700 $1,056.97 $6,009.60 $3,438.81 Sep -12 8 145144 $1,555.96 8 82300 $990.37 $6,009.60 $3,463.27 Aug -12 8 140462 $1,513.82 8 90600 $1,065.07 $6,009.60 $3,430.71 Jul -12 8 149826 $1,598.10 8 99000 $1,140.67 $6,009.60 $3,270.83 Jun -12 8 140462 $1,513.82 8 89239 $1,052.82 $6,009.60 $3,442.95 May -1 2 8 191964 $1,977.35 8 69161 $872.12 $6,009.60 $3,160.14 Month Meter Size CF Usage Comparison charge Mar -13 3 51300 $577.34 Feb -13 3 41100 $483.50 Jan -13 3 44800 $517.54 Dec -12 3 43800 $497.01 Nov -12 3 56500 $611.31 Oct -12 3 77000 $795.81 Sep -12 3 84271 $861.25 Au -12 3 102329 $1,023.77 1 Flat Rate Billed Amt Difference $2,181.95 $1,604.61 $2,181.95 $1,698.45 $2,181.95 $1,664.41 $2,128.40 $1,631.39 $2,128.40 $1,517.09 $2,128.40 $1,332.59 $2,128.40 $1,267.15 $2,128.40 $1,104.63 Month Meter Size CF Usage Comparison Charge $890.86 Meter Size CF Usage Compariso n charge Mar -13 2 8200 $150.71 $835.81 11/2 217 $62.24 Feb -13 2 8280 $151.45 11/2 239 $62.44 Jan -13 2 8210 $150.80 11/2 194 $62.02 Dec -12 2 9520 $159.11 1 1/2 198 $60.55 Nov -12 2 11800 $179.63 11/2 279 $61.28 Oct -12 2 13310 $193.22 1 1/2 405 $62.42 Sep -12 2 12220 $183.41 1 1/2 528 $63.52 Aug -12 2 13890 $198.44 1 1/2 574 $63.94 Flat Rate Billed Amt Difference $1,103.81 $890.86 $1,103.81 $889.93 $1,103.81 $890.98 $1,076.72 $857.06 $1,076.72 $835.81 $1,076.72 $821.09 $1,076.72 $829.79 $1,076.72 $814.34 4 ift Mobile Home Park Implementation • 2012 Meters installed • 2013 Comparative billing information provided to park owners • 2013 Property owners billed for meter installation (same terms and conditions as single family residential) • 2014 Billing begins January 4 Apartment/Condo Implementation • 2013/14 Meters installed • 2015 Comparative billing information provided to owne associations rs and homeowner • 2013 Property owners billed for meter installation (same terms and conditions as single family residential) • 2016 Billing begins January Fire Suppression • No charge for fire suppression • Does not include flushing and flow testing usage 13 Cities weighted toward western and southwestern region of U.S. Surveyed 7,972 multiple family properties Tenant billing based upon sub -meters or other billing system 4 In -Rent Properties — properties where the owner does not separately bill tenants for water and wastewater Impact Properties — properties that bill tenants separately for water and wastewater by sub -metering, ratio utility billing systems or a hybrid of the two 4 Impact Properties Sub -metering — full capture metering that occurs downstream of a water utility master meter Ratio Utility Billing System (RUBS) — use an allocation formula to estimate water consumption for each unit (such as square footage, number of occupants or number of fixtures) Hybrid — combination of the two above 4 Billing Recommendation • In -rent is the simplest and most common method • Increase rent by the amount paid by the tenant for water (and later wastewater) • Comparisons show positive impact to cash flow • Convert all apartment/condominium properties at the same time 101 �p9 Billing Alternative • Continue sending flat rate bills • Allocate usage based water cost to each of 5,475 units at the end of the year • Rebate a credit or collect additional from 5,475 units • Complicated by tenant turnover Questions?