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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/24/2006 - SINGLE FAMILY / DUPLEX WATER RATE ALTERNATIVES DATE : January 24 , 2006 WORK SESSION ITEM STAFF : Michael Smith FORT COLLINS CITY COUNCIL Terri Bryant SUBJECT FOR DISCUSSION Single Family / Duplex Water Rate Alternatives . GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1 , Does Council believe there is a compelling need to change the existing water rate structure? If so, what result(s) or outcome(s) would the Council like to achieve by changing the existing water rate structure? 2 . Are there any other water rate structures which the staff has not presented that the Council would like to review? 3 . Is there any additional information Council would like on this issue? BACKGROUND History of Water Rate Changes Single-Family/Duplex) : 2002 — Single-family/duplex water rates were uniform with a $ 14. 69 fixed charge per month. January 2003 - A 5 -Tier water rate for single-family duplex water rates went into effect. Fixed charge reduced to $ 12 . 72 per month. 20% increase between tiers. May 2004 — The 5 -tier water rate was revised to a 4- tier rate to reduce the impact on the highest water users . Fixed charge remained at $ 12 . 72 per month. 20% increase between tiers . May 10, 2005 - Council members voiced support at a work session to change water rates effective for the summer of 2005 . May 24, 2005 — After receiving follow-up information from staff on rate options, Council requested staff to prepare an ordinance to return to a uniform rate. In response, staff prepared Ordinance No . 076 amending the single family/ duplex water rate by eliminating the tiers and returning to a uniform water rate . After discussion by Council on July 5 , 2005 the change to water rates was postponed indefinitely by a 7-0 vote. During the 2006-2007 budget process, Council again expressed a desire to have staff review alternative water rate options . Rate Design Objectives : January 24 , 2006 Page 2 The primary business objectives in structuring rates include revenue stability to sustain utility operations, rate stability to facilitate predictability in consumption patterns, conservation of a precious commodity and ease of administration. The objectives for the customer include minimizing rate changes for predictability of costs, fair and equitable rates, and simplicity/ understandability. Costs of Operation (Fixed and Variable) : The water utility sells the service of treating and delivering water. The majority, 90%, of the costs associated with that service are fixed and do not vary with use or demand. Only 10% of the costs, electricity and chemicals for treatment and a portion of payments in lieu of taxes (PILOTS) are variable based on customer use . The following graph illustrates the components of the water fund ' s fixed and variable costs : Fixed and Variable Costs (by function) Water Fund - 2006 Budget (Exclusive of Capital & Contingency) Transfers to Principal & Gen Fund Interest (less Pilots) 32% Pilots 5% Environmental 6% & Lab Srvs — Electricity for 4% �� WTP Water ° Chemicals 1 /o Production 5% (less Chem. & Ele .) 16% Customer Services & Transmission & Admin Distribution Water Water Meter 14% $% Resources Operations 7% 3% January 24 , 2006 Page 3 Revenues (Fixed and Variable) : 34% of total revenues are generated through the fixed components of the rates . The variable components generate the remainder of the revenue . Fixed vs . Variable Revenue Water Rate Revenues - 2004 Re erruef r=Var i ahl a Charges 66% Reieeuef rarrHxWCharges 3 OA Alternative Rate Options : The number of rate options that can be developed is endless . Staff has developed a variety of rate options including tiered rates with different fixed charges and different increases between tiers, a uniform rate with and without fixed charges and the water budget rate. A few possible options are presented in the following tables . Each table shows the impact on single family customers ' monthly bills as their monthly use changes . The various options reveal the sensitivity of the monthly bills for low and high users in response to any proposed change . January 24 , 2006 Page 4 Option 1 : 4 -Tier Structure, $ 12 Fixed Charge ; 10 % Steps Option 2 : 3 -Tier Structure, $ 12 Fixed Charge ; 20 % Steps Option 1 Option 2 Gallons Use Current 4-Tier 4-Tier Rate 3-Tier Rate RATE Rate $ 12 Fixed Charge $ 12 Fixed Charge STRUCTURES : 10% Steps 20% Steps Current 4-Tier Rate 0 $ 12 . 72 $ 12 . 72 $ 12 . 72 Fixed/mo $ 12.72 1 , 000 is 14 . 50 $ 14 . 63 $ 14 . 54 0-7000 $ 1 .781 /kgal 2 , 000 $ 16 .28 $ 16 . 54 $ 16 . 36 7001 -13000 $ 2. 141 /kgal 3 , 000 $ 18 .06 $ 18 .45 $ 18 . 17 13001 -20000 $ 2.565/kgal 4 , 000 $ 19 .84 $ 20 . 36 $ 19 . 99 > 20 000 3.074/k al 5 , 000 $ 21 .63 $ 22 . 27 $ 21 . 81 ro osed 4-Tier Rate - Option 1 6 , 000 $ 23 .41 $ 24 . 18 $ 23 . 63 Fixed Charge $ 12 .00) 7,000 $ 25. 19 $ 26.09 $ 25.45 4-Tier Step % 10% ) 10 , 000 $ 31 .61 $ 32 . 39 $ 31 . 99 Fixed/mo $ 12.72/kgal 137000 $ 38.03 $ 38.70 $ 38. 54 0-7000 $ 1 .910/kgal 165000 $ 45 . 73 $ 45 . 63 $ 46 . 39 7001 -13000 $ 2. 101 /kgal 207000 $ 55.99 $ 54.87 $ 56.86 13001 -20000 $ 2.311 /kgal 255000 $ 71 . 36 $ 67 . 58 $ 69 . 95 > 20 000 $ 2.542/k al 303000 $ 86 . 73 $ 80 . 29 $ 83 . 04 ro osed 3-Tier Rate - Option 2 35 , 000 $ 102 . 10 $ 93 . 00 $ 96 . 13 Fixed Charge $ 12 . 00) 1 40 , 000 $ 117 .47 $ 105. 71 $ 109 .22 13-Tier Step % 20% ) 1 50 , 000 $ 148 .21 1 $ 131 . 13 1 $ 135 .40 `Fixed/mo $ 12.72/kgal 75 , 000 $ 225 . 06 $ 194 . 68 $ 200 .85 0-7000 $ 1 .818/kgal 100 , 000 $ 301 . 91 $ 258 . 23 $ 266 . 30 7001 -13000 $ 2. 182/kgal 1 150 , 000 $ 455 . 61 $ 385 . 33 $ 397 .20 > 13 ,000 $ 2.618/kcal F 200 , 000 $ 609 . 31 1 $ 512 .43 $ 528 . 10 * includes PILOTS Comments (Options 1 & 2) > Provides moderate relief to high users > Little change for lower users > Moderate conservation price signals Very similar to existing 4-tier rate > Easy to administer and understand January 24 , 2006 Page 5 Option 3 : 4-Tier Structure, $ 6 Fixed Charge ; 10 % Steps Option 4 : 4-Tier Structure, $ 6 Fixed Charge ; 20 % Steps Option 3 Option 4 RATE Gallons Use Current 4-Tier $6.00 $6.00 Rate" Fixed Charge 10% Fixed Charge STRUCTURES : Steps* 20% Steps* Current 4-Tier Rate 0 $ 12 . 72 $ 6 . 36 $ 6 . 36 Fixed/mo $ 12.72 19000 $ 14 . 50 $ 8 . 95 $ 8 . 77 0-7000 $ 1 .781 /kgal 29000 $ 16 .28 $ 11 . 53 $ 11 . 17 7001 -13000 $ 2. 141 /kgal 39000 $ 18 . 06 $ 14 . 12 $ 13 . 58 13001 -20000 $ 2.565/kgal 49000 $ 19 . 84 $ 16 . 70 $ 15 . 99 > 20,000 $ 3.074/k al 59000 $ 21 . 63 $ 19 . 29 $ 18 .40 Proposed Option 3 69000 $ 23 .41 $ 21 . 87 $ 20 . 80 fixed $ $ 6.00 77000 $ 25. 19 $ 24.46 $ 23.21 tep % 1 10% 10 ,000 $ 31 . 61 $ 32 . 99 $ 31 . 87 Fixed/mo = $ 6.36/kgal 139000 $ 38.03 $ 41 . 52 $ 40. 54 0-7000 $ 2.585/kgal 169000 $ 45 . 73 $ 50 . 90 $ 50 . 94 7001 -13000 $ 2.844/kgal 209000 $ 55 .99 $ 63.42 $ 64.80 13001 -20000 $ 3 . 128/kgal 259000 $ 71 . 36 $ 80 . 62 $ 85 . 59 > 20 000 3 .441 /k al 30 ,000 $ 86 . 73 $ 97 . 83 $ 106 . 39 Proposed Option 4 355000 $ 102 . 10 $ 115 . 03 $ 127 . 18 fixed $ $ 6.00 405000 $ 117 .47 $ 132 . 24 $ 147 . 98 tep % 1 20% 505000 $ 148 .21 $ 166 . 65 $ 189 . 57 Fixed/mo = $ 6.36/kgal 755000 $ 225 .06 $ 252 . 67 $ 293 . 54 0-7000 $ 2.407/kgal 1005000 $ 301 . 91 $ 338 . 70 $ 397 . 52 7001 -13000 $ 2.888/kgal 1505000 $ 455 .61 $ 510 . 75 $ 605 .47 3001 -20000 $ 3.466/kgal 200 000 $ 609 . 31 $ 682 . 80 $ 813 .42 > 20 ,000 4. 159/k al * includes PILOTS Comments > Low users see reduced bills > Could be considered unfair > Easy to administer and understand to large lot owners > Moderate price increases to high > Higher degree of revenue users with Option 3 instability due to lower > Stronger price increases to high fixed charge users with Option 4 > Provides no relief to medium to large users (greater than 10,000 gallons) As the tables show, tiered rates can be applied in a variety of ways . Each variation brings with it a different impact on revenue stability for the utility and bears a different conservation price signal to customers . January 24 , 2006 Page 6 Option 5 : $ 12 Fixed Charge, Uniform Rate Option 6 : $6 Fixed Charge, Uniform Rate Option 7 : $0 Fixed Charge, Uniform Rate Option 5 Option 6 Option Uniform Uniform Uniform Gallons Use Current 4-Tier Rate/ Rate/ Rate/ Rate $12.00 $6.00 $0.00 Fixed Fixed Fixed Charge* Charge* Charge* Current 4-Tier Rate 0 $ 12 . 72 $ 12 . 72 $ 6 . 36 $ - Fixed/mo $ 12.72 19000 $ 14 . 50 $ 14 . 77 $ 9 . 13 $ 3 .49 0-7000 $ 1 .781 /kgal 29000 $ 16 .28 $ 16 . 81 $ 11 . 90 $ 6 . 99 7001 -13000 $ 2. 141 /kgal 39000 $ 18 . 06 $ 18 . 86 $ 14 . 67 $ 10 .48 13001 -20000 $ 2.565/kgal 49000 $ 19 . 84 $ 20 . 91 $ 17 .44 $ 13 . 98 > 20 000 3.074/k al 59000 $ 21 . 63 $ 22 . 96 $ 20 .21 $ 17 .47 Step % 1 0% 61000 $ 23 .41 $ 25 . 00 $ 22 . 98 $ 20 . 96 niform Rate - O tion 5 77000 $ 25. 19 $ 27 .05 $ 25.75 $ 24.46 fixed charge $ 12 .00 101000 $ 31 . 61 $ 33 . 19 $ 34 . 06 1 $ 34 . 94 Fixed/mo = $ 12.72 13,000 $ 38.03 $ 39 .33 $ 42.37 1 $ 45.42 All gallons 2 .047/k al 16 , 000 $ 45 . 73 $ 45 .47 $ 50 . 68 $ 55. 90 niform Rate - Option 6 20,000 $ 55.99 $ 53 .66 $ 61 .76 $ 69 .88 fixed charge $ 6 .00 25 , 000 $ 71 . 36 $ 63 . 90 $ 75 . 61 $ 87 . 35 Fixed/mo = $ 6.36 30 , 000 $ 86 . 73 $ 74 . 13 $ 89 .46 $ 104 . 82 All gallons 2 .770/k al 35 , 000 $ 102 . 10 $ 84 . 37 $ 103 . 31 $ 122 .29 niform Rate - O tion 7 40 , 000 $ 117 .47 $ 94 . 60 $ 117 . 16 $ 139 . 76 fixed charge 0 .00 50 , 000 $ 148 .21 $ 115 . 07 $ 144 . 86 $ 174 . 70 Fixed/mo = $ 75 , 000 $ 225 .06 $ 166 .25 $ 214 . 11 $ 262 .05 All gallons 3 .494/k al 1004000 $ 301 .91 $ 217 .42 1 $ 283 . 36 $ 349 .40 1505000 $ 455 .61 $ 319 . 77 1 $ 421 . 86 $ 524 . 10 200 000 609 . 31 422 . 12 560 . 36 698 .80 * includes PILOTS Comments > Simple to administer and understand More revenue stability with Option 5 , no significant difference with Option 6, and less with Option 7 > Option 5 has significant cost reduction for high users > Option 6 has a slight cost reduction for use under 6, 500 gallons and over 40,000 gallons > Option 7 increases costs for all use above 8 ,000 gallons > Uniform rates may not be perceived as sending strong conservation price signals January 24 , 2006 Page 7 Water Budget The water budget rate sets an individual water allocation for indoor and outdoor use for each customer. The indoor allotment would be based on the customer' s average winter quarter (Dec-Feb) water consumption times a factor of 1 .2 to allow for monthly flow fluctuations . The outdoor allotment would be based on 65 % of the lot size and a predetermined irrigation component for each month of the year. The water budget for each individual customer would vary month to month with it being larger during the summer months and smaller during the winter months . Monthly water consumption in excess of the water budget would be billed at a higher variable rate to discourage excessive water use. The table below represents the monthly cost to customers with different lot sizes . The table assumes the customer used their maximum allotment in each given month. The table also shows the maximum annual savings compared to the current 4-tiered rate for a customer using their total indoor and outdoor allotment. Option 8 : Water Budget Rate ixed Mo.Mh 1272 tment/k al 204 7 0 of Max Allotment/k al 1071 0 of 20 % of Max Allotment/k al 4.094 January 24 , 2006 Page 8 Smaller Size Customer Medium Size Customer 90%'tile Customer ( large lot) WQA 4 000 5 200 8 000 Lot Size I 6 700 8 ,600 12 000 Month Wtr Bgt Current W. B. Wtr Bgt Current W. B. Wtr Bgt Current W. B. Max Gals Rate Rate Max Gals Rate Rate Max Gals Rate Rate Jan 6 157 $ 23.69 $ 25 . 32 7 982 $ 27 .29 is 29 .06 12 , 031 $ 35 . 96 $ 37 .35 Feb 6 157 $ 23.69 $ 25 . 32 7 982 $ 27 .29 $ 29 .06 12 , 031 $ 35 . 96 $ 37 .35 Mar 1 7 , 515 $ 26.29 $ 28 . 10 9 , 725 $ 31 . 02 $ 32 .63 14 ,462 $ 41 . 78 $ 42 .32 Apr 15 , 116 $ 43.46 $ 43 .66 19 ,482 $ 54 . 66 $ 52 .60 28 077 $ 80 . 82 $ 70 . 19 MaV 15 , 388 $ 44. 16 $ 44 .22 19, 830 $ 55. 55 $ 53 .31 28 , 563 $ 82 . 31 $ 71 . 19 Jun 18 , 917 $ 53.21 $ 51 .44 24 360 $ 69 . 39 is 62 .59 34 , 884 $ 101 . 74 $ 84 . 13 Jul 22 , 989 $ 65. 18 $ 59 . 78 29 587 $ 85.46 $ 73 .29 42 , 178 $ 124 . 16 $ 99 .06 Auq 19 ,460 $ 54.60 $ 52 . 55 25, 057 $ 71 . 53 $ 64 .01 35 , 857 $ 104 . 73 $ 86 . 12 Sep 14 , 573 $ 42 .07 $ 42 . 55 18 , 785 $ 52 . 87 $ 51 . 17 27 104 $ 77 . 83 $ 68 .20 Oct 12 , 944 $ 37.91 $ 39 .22 16 , 694 $ 47 . 51 $ 46 .89 24 , 187 $ 68 . 86 $ 62 .23 Nov 7 515 $ 26.29 $ 28 . 10 9 725 $ 31 . 02 $ 32 .63 14 462 $ 41 . 78 $ 42 .32 Dec 61157 $ 23.69 $ 25 . 32 71982 $ 27 . 29 $ 29 .06 12 , 031 $ 35 . 96 $ 37 .35 Totals 152 , 889 $ 464 . 23 465 .60 197 192 $ 580 . 89 $ 556.29 285 868 $ 831 .89 $ 737 . 81 Max Annual Savings $ 1 . 38 $ 24 . 59 $ 94 .08 Water Budget Rate Comments > Promotes perception of fairness > Maintains high price penalty for excessive water use Could be easily adapted for drought conditions by proportionally reducing outdoor water allotment > Very complex to administer, explain and understand > Monthly bill for low users increases slightly compared to current rate In reviewing the various rate impacts, it should be noted that during a single year, 57% of the single- family water bills issued are for less than 7, 000 gallons per month, 80% are less than 13 ,000 gallons per month and 90% are less than 20,000 gallons per month as indicated in the following graph : January 24 , 2006 Page 9 Residential Water Rate Comparison $140 70% $120 60% d $100 50% 0 i Q E $80 40% a L In a $60 30% V) t0D $40 20% G 0 $20 10% $- 1 1 P I I I P 1 0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CCCC 0 0 0 0 0 0 0 0 CCC 0 CC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CV CO CC O N V CD co O N V (D °0 O N V CD OD O N N N N N M M M M M 'I- gallons per month of bills in range Current Rate Water Board Recommendation . The Water Board' s Financial and Legislative Subcommittee met to discuss water rates on January 6, 2006. In general, the committee has recommended that the current rates remain in effect for 2006 and the foreseeable future. Its recommendation is attached. Staff Recommendation The staff recommends keeping the existing 4-tier rate structure in place or adopting Option # 1 . Option # 1 is the present 4-tier structure with 10% steps instead of the current 20% steps . Option # 1 still sends a fairly strong, long-term conservation message while recognizing that we are not facing a severe water shortage. The Option # 1 4-tier structure could easily be modified back to the 20% steps in the future if a water shortage is experienced and there is a need to send a stronger conservation message. Next Steps : If there is enough interest in considering one of the alternative rate options, staff will prepare a water rate ordinance for Council approval as soon as it can be scheduled. ATTACHMENTS • Water Board Recommendation 0 Council Water Rates Presentation Slides MEMORANDUM Date: January 13, 2005 To: Mayor and City Councilmembers From: Ted A. Borstad, Water Board Chair RE: Water Rates The Fort Collins Water Board recommends that City Council retain the current fixed charge plus four-tier water rate structure for the foreseeable future 1 (at least for two years unless currently unanticipated events or conditions strong ly y indicate otherwise). The Water Board further recommends that the current rate structure be reviewed annually for the next two years by Utility staff and the Water Board to determine if any adjustments in either the fixed charge or tiered rates should be recommended to City Council. These recommendation are based on the following factors: 1. The existing rate four-tiered rate structure adequately addresses the followin g criteria for ales. water r g key 1.1. promotion of long-term efficient water use; 1.2. understandable by ratepayers; 1.3. compatible with the current utility billing system; 1.4. providing water at lower prices for basic and essential needs; 1.5. rewarding customers for lower water use with lower unit rates; and 1.6. providing reasonably stable and predicable revenue to operate the water utility. 2. The current rate structure has been in place for about 18 months. The Utility staff is still gaining necessary and valuable experience with this structure, especially in estimating future revenues relative to costs and reserves. Additional time is necessary to refine future revenue estimates to cover costs and best manage reserves. 3. Though we have no direct evidence, the current rate structure is believed to be a factor in the overall reduction in water use (as measured by average daily consumption) experienced since it's inception (i.e., it sends a strong conservation price signal to ratepayers). 4. Maintaining the current rate structure should be viewed very favorably during the ongoing independent environmental review of the City's proposed Halligan project. 5. Changing the current rate structure now(and/or frequently in the future) may be counterproductive to the water utility's fiscal management. In other words, it will take several years to be able to adequately predict revenue in wet and dry years. 6. Changing the rate structure may be confusing to the ratepayers and general public. Thank you for the opportunity to provide input on this very important issue. If we can be of further service on this subject, please let us know. Cc: Darin Atteberry Michael Smith Terri Bryant DeEtta Carr 2 mrm r 1 Jrl � � � � f�4J �' r • . — — • do — . — AM AM fp e ismrr ,� e J r J Our Product The water Aj e ring J J rJ � r of Pro \71 �� l J J r � � J � r �� � r � j cri v rA ElEty fD * the Uti i �� � T ] iJ � . iJJJr � J J^ TI � � JC 0 bjn e � T r � � J Jr � - • • L . � J J Objectives for4he Customer inirnize , • changes J if costs 4&e fixed ( not r - , rrr - r r r. • . . • � lr7Wi Jr • • , • vIV r S) 0 U rrp � � � r �� r • : . J �J J J J rr J • � ' r' � l • � � r J � r ] �] Fri g !ir ] r gir J 1 � � A 1 Water Fund - 2006 Budget ( Exclusive of Capital & Contingency) VARIABLE COSTS ( Electricity , Chemicals , PILOTS ) FIXED COSTS ( 0&M and 10% Debt) 90 % Fixed and ariable Nun MEN b Q n ) Water Fund - 2006 Budget ( Exclusive of Capital & Contingency) Transfers to Gen Fund P & 6 % % 32 % Pilots Environment 4 % & Lab Svcs Electricity 4 % o Water Chemicals Production ' 5 % 16 % Customer Trans & / Water Meter Services & Distrib Water Operations Admin 8 % Resources - ' esources 3 % 14 % 7 % AM P V v kif J Water Rate Revenues - 2004 Revenue from fixed charges 34 % Revenue from variable charges 66 % Current Rate + 19 Voluntary t ng _ rJTrl • _ - � . � . • - - r � � Jr ; 1 � rr- . re t r � r Fixed Chargem 1 11J �vw • l �, , I _ . • J � 1 � � • � 7 1 001 � 1310 Ilons W7 r � r n7ro J J � perJJ .. H LY B I a0 N i From M"'J I % of bills in� Range 71000 57gA 13 , 000 20 , 000 33 , 000 am 73M M 50 , 000 010C w 60 , 000 6010 ( w 80 , 000 w 80 , 00j= 100 , 000 100 , 001 � 150 , 000 M 0 . 03 ° 150 , 001 2001000 0 . 004 °/ol 2001004 320 , 000 0 . 002 % 1 12 J $ 140 70% jf • $ 120 60% � J $ 100 50% co J $80 40% ' L Om $60 30% N 0 0 J J v $40 20% o $20 10% lccc $- NINE 0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ' J N � ( Cb ON1O N N N 04 CO CO M CO cM CO gallons per month III I I ' % of bills in range Current Rate _ � lei • ✓' �J J J Water Budget Indoor •i& Ga I allo.tted equal to 1 . 2t rn le In tell a le moo 1110A J J J J J _ _ r Water Budget Rate Ogidii1lillhommulia oies65 % offf xes - - rm 1 - f� TrJ �] rJ111 r J !1T ] r r� � � � � � � l q JrlTl �lrJ JTl 11 c r . . • - • rr ] r ] - . • • . Bud g e 1111111111I Y Factors Step 1 Step Tmqw eter Re Indoor Allotm Irrigation th Requir Inc Jan , Feb & Dec WQA x 1 . 2 0 . 50 " Mar & Nov WQA x 1 . 2 1 . 00 " Apr WQA x 1 . 2 M " May WQA x 1 . 2 3 . 9 " Jun WQA x 1 . 2 5 . 2 " Jul WQA x 1 . 2 6 . 7 " Aug WQA x 1 . 2 5 . 4 " Sept WQA x 1 . 2 3 . 6 " Oct WQA x 1 . 2 3 . 0 " 17 Ciro �) r • � � , - JOU . . . • . . . Ji � r � r F' � �� �J l � � r� rr� r� lJgrrr � Prir r� lJC � lI � r � � in ExcessTot. Allotment Feb : D -, r . 1 • 1 MOO . 1 • 1 1 !JI , � � I= � � 1 • 1 �� �� � r - • r� rIf4 T 'iered � e Opt 'ions ="V iiw4i IIIIIIIIIIIIIII'lliq 4 - to 2Jmxed % 0 0 n 1 . 0 I MLIL steps .... opt r - 1 J * 0 � tie • � r � r illpmr 1 � rJ ' f J J � � � � J�IJ r J J J J 1 ' r J Residential Water Rate Comparison — rrcto to 11 111 $60 II sill $50 1 III 1 ris:�;�l < • r le� $40 �. -rJrl �f � r�� • c $30 � �llllJ rl CL h I 111 f o $20 U — 11 111less1 $ 10 ) rr Irrr 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 • • • O N M LO C0 1�- 00 07 O CV M � LO Co ti 00 6> CV Gallons per Month 11 III Current Proposed 4-tier Proposed 3-tier III ■ J IJ J q.Jj ;lf 00 CL ' • G Residential Water Rate Comparison $350 $300 • • $250 ' • 1 `, Vj 'r Fr I D % O $200 � L Q- $ 150 IIIIIIII c 0 $50 00 0000 J � iQdP $ O • O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O ' O O O O O O O O O O CD O O O O O O O O - Option O O LO O LO O LO O LO O LO O LO O LO O LO O LO O CV CV C•M M � LO LO CD CO r� ti co co M d7 Gallons per Month 0 ; 00 000 Current Proposed 4-tier Proposed 3-tier Oi0 NIL k .JJ 00 JjJ JJ - J J - J J � J J � J I • J I 1� \J 1 1 - - � JJ� J , JJJ � �� JJ • �� I III Residential Water Rate Comparison II III II IIII $70 • . IIII 1 - see - . of 4 $60 - . $I f $50 o $40 J III a> $30 cc IIII o $20 • . . . . . . . r_ $ 10 Fixed 'I �. OD " • 0% o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (ZD (ZD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 - - - - - - - - - - - O N M � LO CO ti 00 6) O CV M i Lf) Co 1 - co 6) N I III 1 III : : : gallons per month IIII $ 3 ,466 current Proposed Option 1 Proposed option 2 above 20000 4 00 J r � ,� 1� ' I • � � • 1 1 I � J � J J '1 00 ) 000 J �l Residential Water Rate Comparison fill $450 fill -, $400 $350 000000 $300 M $250 I oil cL $200 off 0 $ 150 � I fill $ 100 0 - $50 xxxx " • v • 11111 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ee vv 22 00000( 3065 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - • 1 % - - - - - - - - - - - - - - - - - - - o Ln o Ln o Ln o Urn o Un o Un o Ln o Ln o Ln o Ln o N N M M T T L0 L0 (D C0 I - ti 00 00 M M • • 0 gallons per month 00 000 : : : Current Proposed Option 3 Proposed option 4 0000 T iere o , d Rates CMkenbk rrJT ] rici n qor ] � ] zoTc griser \l �] rJ JT ] P7 Pflp \- -- s » iIi ry r' r , ,,jFto administer and understand Un 'Iform Rate Opt 'ions U m1form Rate 6w OD • � JJ12Fmlx" ,LCbarge o •k � l J ; - • g ' rJT ] � � J �, W ,� 1 off Residential Water Rate Comparison $80 $70 - • , 2. DD $50 00000 $40 r� • , • Q �. $ 30 0 Proposed Option $20 tixed • 11 ixed/mo $10 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 _ 0 0 0 0 0 0 0 0 0 • • • • - • • • JIJ N co co I� M CDN CO V LO (D I� CO M CD N Fixed ' J . JJ gallons per month All gallons Current Proposed Option 5 — Proposed Option 6 Proposed Option 7 3 ,494 I 1 off 1 11 Residential Water Rate Comparison $400 - • �/� � % $350 • . • . • • $300 00 $200 r� • . • Q w $ 150 0 Proposed Option $ 100 Itixed $50 All gallons $- 0 � o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pronosed • • • L0 o Ln o �n o Ln o Ln o Ln o �n CD o �n CD o0 N N M co V � LO LO (o Co I� ti M M M M gallons per month All gallons Current Proposed Option 5 - — Proposed Option 6 Proposed Option 7 • Uniform Rate &MSen qE w rr • - to administer . � . d -ersta MCWIL _F ar I sta ty th I g - ,ji c rea5 qfimj6Q ui" j o rr � 11 � rrJT ] g 1r rj J �i i � r � � � Staff Recommendati if ) "BMW= Two" Keinn __ _ ourr G AM 1 memo r �� J I 0 T ] PP MM S J _