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Sewer Treatment Rate Increase

East Valley Water District Board of Directors will hold a public hearing on the proposed rate pass through on Tuesday, November 22 at 6 p.m. in the East Valley Water District Board Room, 3654 E. Highland Ave., Highland, California.

Read the details of the proposed rate increase.

Staff Report

Subject:

On October 19, 2010, the Board of Water Commissioners (BOWC) conducted a sewer rate workshop to review the Sewer Treatment Rate Study Model (model) performed by R. W. Beck, Inc., a nationally recognized engineering and rate consulting firm.  This study analyzed cost of service, developed revenue requirements, and designed new rates to meet the financial requirements of the sewer treatment facilities operated by the Water Department.  The BOWC authorized submission of the model to Mayor and Common Council for adoption of a two-step rate adjustment, approximating a system average of ten percent (10%) each, to be implemented February 1, 2011, and January 1, 2012, respectively.

Background:

The sewer treatment facilities are owned and operated by the Water Department.  Sewer fees and charges were last adjusted January 1, 2009 and January 1, 2010, through a 2008 Sewer Rate Study conducted by R. W. Beck.  That study proposed:

1. a series of rate increases over a five-year period;
2. coverage of debt service through rates;
3. wastewater strength samples and discharge flows analysis by January 2011; and
4. cost-based adjustments between classes based upon the additional sampling.

Given the volatile economic conditions at that time, Department staff recommended two five percent (5%) across-the-board adjustments to sewer treatment rates effective January 2009 and January 2010, respectively. This offered the Department the opportunity to address any cost-of-service issues in January 2011. On June 15, 2010, the Department retained Beck to update the 2008 Sewer Rate Study, develop revenue requirements, and cost allocation studies.

Financial Impact:

Beck’s model (attached) summarizes projected sewer revenue requirements for Fiscal Years 2011 through 2015, documents fiscal policy issues that affect revenue requirements, and provides detailed supporting calculations.   The model identifies four primary reasons the Department must increase rates:

1. Preliminary audit findings for Fiscal Year 2009/2010 indicate that the sewer treatment debt coverage ratio may be in violation of the bond covenant requirements.  Section 6.12 of the Installment Purchase Agreement in connection with the 1998 sewer treatment financing states, “The City shall fix, prescribe and collect rates, fees, charges and connection fees for sewer service which will be at least sufficient to yield during each Fiscal Year Net Revenues equal to one hundred ten percent (110%) of Debt Service for such Fiscal Year.”
2. The Department requires additional capital funds to meet increasing state and federal regulatory requirements.  It is estimated that an amount in excess of $20 million in funding will be necessary to meet regulatory compliance issues over the next five years.
3. The Department must continue to meet ongoing fixed obligations during the economic downturn.
4. The Department must adjust commercial rates by class to more accurately charge cost of service and eliminate subsidies.

Beck reviewed historical operating expenses, existing assets, existing debt service, projected expenditures, potential financing strategies, required capital improvements, local economic factors, and system flow and loading information.  Revenue requirements are established utilizing an iterative process that reviews various projected impacts of proposed rates.

Beck then functionalized, classified and allocated costs among various customer classes based upon usage characteristics of each class. The model analyzed the results over a five-year period and arrived at rates that meet the needs of the utility at the lowest possible cost to the consumer.

The proposed rates (listed in Table COS-10 of the attached model) are rounded to the nearest five cents to simplify the calculation for our customers. This rounding has no significant impact on the percentage increase.  Residential customers will see a $1/month and a $1.50/month increase in their sewer treatment bills in 2011 and 2012, respectively. The increase in commercial customer bills will vary according to consumption and the classification in which the account resides.

The Department has developed the following calendar for implementation of the adjustment for sewer treatment fees:

Recommendation:

Set public hearing for January 10, 2011, at 4:00 p.m. in the Council Chambers of City Hall to adjust sewer treatment rates as defined in the Sewer Treatment Rate Study Model for implementation February 1, 2011, and January 1, 2012, respectively.
 

Attachments: Department Presentation

R. W. Beck Sewer Treatment Rate Study Model – Fiscal Years 2011 – 2015

Eastwood Farms Bid Results

These are the bid results for the Eastwood Farms Water Improvement Project. Click the image to magnify.

Inland Empire Garden Friendly Plant Sale

Download the Plant Sale Flier

Notice: Well Flushing at Plant 40

Beginning on Tuesday, 4/18/11, East Valley Water District will begin flushing a Well at Plant 40. Due to repairs and maintenance on the Well, the plant had to be shut down. Due to federal and state regulations, the plant will need to be flushed before it can be placed back into the distribution system. Well 40 is located on Third Street, east of Palm Avenue in the city of Highland.

The District is looking at flushing the Well for approximately 6 hours a day for 4 days. The flushing times will not start before 8 AM and not go beyond 4 PM. If sampling results comes back positive for bacteria, we will need to continue flushing until we get a good sample, so it is possible we may need to flush more than the 4 days.

The water that is being flushed is non-potable water. The intersections of Palm Avenue and Third Street, Palm Avenue and Fifth Street as well as Fifth Street west of Palm Avenue will be affected by this flushing. Warning signs regarding the flushing will be posted in the area. We apologize in advance for any inconvenience this may cause. If you have any questions regarding this flushing, please call our Engineering Department during the hours of 8 AM and 5 PM Monday through Friday at (909) 888-8986.

East Valley Water District Offers Paperless Billing Alternative

New system cuts costs and provides more options for customers

Highland, Calif., (April 12, 2011) – Responding to customer requests for more convenient billing options, East Valley Water District (EVWD) now offers paperless billing that sends customers’ monthly bills to their email accounts. This option eliminates paper waste, which will save the District resources and money. It is also a choice customers can make with the environment in mind.

“Our goal is that 30-percent of our customers will choose paperless billing, which would save the District about $30,000 in paper and postage each year,” said Robert E. Martin, EVWD general manager.

Signing up for paperless billing is easy. Customers simply go to www.eastvalley.org and look for the paperless billing button. Signing-up is free and only requires a current email address. Paperless bills allow customers to view all the same detail they are accustomed to: account activity, water usage, amount due and more. Customers can view EVWD bills sent within the last year.

When customers choose paperless billing, they still have all the same payment options as before. Customers can mail payments through the postal service or pay at the customer service window at 3654 E. Highland Ave., in Highland. Customers looking for more green options can also choose to pay through EVWD’s automated phone system, online with the District’s e-Care payments, or through their individual bank’s e-payment choices.

“Many customers have told us they prefer a paperless alternative,” said Brian Tompkins, EVWD chief financial officer. “By offering multiple billing and payment options, customers can choose the methods that work best for them.”

EVWD provides water and sewer collection services to about 70,000 people in the Cities of San Bernardino and Highland. For more information about EVWD call (909) 885-4900 or visit www.eastvalley.org.

Notice: Plant 40 Well flushing to begin on Tuesday, March 15

Beginning on Tuesday, 3/15/11, East Valley Water District will begin flushing a Well at Plant 40. Due to repairs and maintenance on the Well, the plant had to be shut down. Due to federal and state regulations, the plant will need to be flushed before it can be placed back into the distribution system. Well 40 is located on Third Street, east of Palm Avenue in the city of Highland.

The District is looking at flushing the Well for approximately 6 hours a day for 4 days. The flushing times will not start before 8 AM and not go beyond 4 PM. If sampling results comes back positive for bacteria, we will need to continue flushing until we get a good sample, so it is possible we may need to flush more than the 4 days.

The water that is being flushed is non-potable water. The intersections of Palm Avenue and Third Street, Palm Avenue and Fifth Street as well as Fifth Street west of Palm Avenue will be affected by this flushing. Warning signs regarding the flushing will be posted in the area. We apologize in advance for any inconvenience this may cause. If you have any questions regarding this flushing, please call our Engineering Department during the hours of 8 AM and 5 PM Monday through Friday at (909) 888-8986.

East Valley Water District Employee Graduates from Prestigious Class

John Drury Participates in Water Leaders Program

John Drury, EVWD Lead Water Treatment Plant Operator, is presented his graduation certificate from Mike Savage, Water Education Foundation Board Chair, and Rita Schmidt-Sudman. Executive Director of the Water Education Foundation, which puts on the Water Leaders Class.

Highland, CA (December 7, 2010) – East Valley Water District (EVWD) is pleased to congratulate John Drury, Lead Water Treatment Plant Operator, for his participation in and completion of the 2010 Water Education Foundation’s William R. Gianelli Water Leaders Class. The Water Education Foundation selects individuals who are dedicated to water issues, display leadership and commitment to public service and pursue advancement within their own organization. This one-year program identifies young community leaders from diverse backgrounds, and provides on-going education about water issues. The class is designed to enhance leadership skills, and prepare participants to take an active, cooperative approach to decision making in their industry. This elite group of 20 class members is comprised of individuals from private business, education, nonprofit and public agencies from across California.

“John’s participation in this prestigious advanced water education project is a great reflection upon his hard work, and the work we do every day here at East Valley Water District,” says Robert E. Martin, EVWD General Manager. “This is another example of how we are always finding ways to better serve our customers and maintain a safe, reliable water supply.”

John Drury has been with EVWD since March of 2004. His primary duties are to ensure EVWD’s water treatment plant is operating properly, including water sample testing. His involvement in this year’s Water Leaders Class is an important part of the ongoing education and training at EVWD.

The rigorous schedule of the Water Leaders Class includes two three-day water industry tours, an executive briefing, and a day “shadowing” a major water leader from either the private or public sector. John’s mentor was Dan McManus, a hydrogeologist with the California Department of Water Resources (DWR). The Water Leaders Class culminates with a special presentation to the Foundation Board on a water topic assigned to the class. Drury’s class presentation was centered around proving and disproving the myths about groundwater governance.

The Water Leaders Class is named for William R. Gianelli, who served as Director of the California Department of Water Resources from 1967 to 1973, and then as Assistant Secretary for the Army in charge of the Corps of Engineers from 1981 to 1984.

For more information about EVWD call (909) 885-4900 or visit www.eastvalley.org.

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East Valley Water District Offers Public Tour

District shows people how water is safely collected, treated and distributed

Highland, Calif., (October 11, 2010) – The East Valley Water District (EVWD) will host the public for a briefing and tour of the facilities on Friday, October 29. Those interested are invited to see first-hand how drinking water is collected, processed and distributed.

This insider’s look at the pumps, tanks and treatment facility is seldom seen by anyone other than water district employees. Along with the tour, visitors will get a full, first hand explanation of how the district provides water and sewer service to Highland and east San Bernardino.

“ It’s important that the general public have a chance to see what we do here, and also where much of the work is done,” says Robert E. Martin, EVWD General Manager. “The opportunity is to create a greater understand of how we provide a reliable, steady, and safe drinking water supply, as well as the process for treating waste- water. The more the public sees us in action, the more they will realize we are a partner in keeping families safe, and making sure our community has the best water supply available.”

EVWD currently serves about 65,000 people with clean, reliable water, which is mostly sourced from the Bunker Hill Groundwater Basin as well as from the santa Ana River, originating from snow-melt and springs in the San Bernardino Mountains. EVWD provides its customers with about 19 million gallons of water each day, and with as much as 36 million gallons per day during peak usage periods.

The public tour that shows how this water reaches individual taps is free, but reservations are required. The tour begins at 8:30 a.m. and runs until about 1:30 p.m. Lunch is provided. Please call (909) 885-4900, or visit www.eastvalley.org for full details about the tour.

Download Printable PDF

Hazard Mitigation Updates

2010 Hazard Mitigation Plan – East Valley Water District is in the process of updating its 2005 Hazard Mitigation Plan as required by FEMA. If you would like to review the 2005 plan or have an interest on sitting on the planning team for the 2010 update, please contact Cecilia Contreras at 909-885-4900 (office) or e-mail to ccontreras@eastvalley.org.