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Notice of Public Hearing

 

Notice of Public Hearing

Proposed 2020 Rate Increase

 

This notice is being sent to all property owners and current rate payers in the Centerville Community Services District (District).  It describes the District’s proposed rate increases as well as proposed new fees and explains why they are necessary.  This notice also provides information on how to file a protest against the proposed rate increases and new fees if so desired. 

 

The Board of Directors has set a public hearing for June 24, 2020, at 7:00 pm (Special Board Meeting) at the District Office located at 8930 Placer Road, Redding, CA.  Additional information related to attendance and participation will be included in the agenda notice.  At the hearing, the proposed rate increases and proposed new fees will be presented and the public will be given an opportunity to comment.  If adopted, the proposed changes will become effective July 1, 2020.  

 

Why are Rates Proposed to be Increased?            

 

The District is basing the proposed rate increases and new fees on: 1) Projected increased annual operating expenses, 2) Anticipated increased expenses of water treatment and distribution, and 3) The need to increase funding for existing reserve budgets necessary to pay for future system improvements, rehabilitation and periodic maintenance. 

 

The District operates and maintains 55 miles of pipeline, six separate pressure zones, 375 fire hydrants, 725 valves, 93 air valves, 21 blow-offs, five booster pump stations, three pressure reducing stations, one pressure relief station, five reservoirs and three inter-tie connections.  The District receives its water from Whiskeytown Lake which is treated at the Clear Creek CSD (CCCSD) Filtration Treatment Plant (Treatment Plant).  As such, the District is responsible for a proportionate share of all costs associated with the operations and maintenance (O&M) of the Treatment Plant. 

 

During the next fiscal year (July 1, 2020 through June 30, 2021) the District anticipates increases in the cost of purchasing, treating and distributing water; maintaining the water system; labor-related expenses due to increases in salary, health benefits and retirement costs; power and fuel costs; as well as general facility improvements throughout the District. 

 

Additionally, the Treatment Plant, which is owned and operated by CCCSD, and for which the District has a contractual cost sharing agreement, will require considerable reinvestment in the next few years to maintain its acceptable working condition and comply with increased regulations.  CCCSD anticipates that the Treatment Plant’s filter media will need to be exchanged over the next several years.  To fund these costs, the District proposes a new Water Treatment Plant Fee which will be charged based on a customer’s consumption of District water.

 

The District is also proposing to establish a Rate Stabilization Fee to fund the District’s Operating and Maintenance (O&M) Reserve. The O&M Reserve is established to bridge cash flow shortages that may arise when expenses exceed revenue, as well as an emergency event that requires immediate attention.  The O&M Reserve also serves to fund significant unplanned O&M expenses such as leaks, machinery breakdowns, revenue disruption due to drought, fire, and power outages. The Reserve’s policy is to maintain between 40-60% of the annual operating budget and is currently below that range. The Rate Stabilization Fee is proposed to be charged based on a customer’s consumption of District water and will be in place until the O&M Reserve balance is within the policy range.

 

 

Proposed Residential Base Rate & Consumption Rate Increases

 

The following proposed rates are calculated based on each customer’s metered water consumption and water meter size.  Due to the increased expenses as previously discussed, the anticipated increases in CCCSD Treatment Plant costs, and the need to increase the District’s O&M Reserve fund, the District is proposing the following increases to the Base Rates and Consumption Rates for Residential, Commercial, Industrial and Institutional customers, as well as Grant School.  Please note the Base Rate does not include water consumption.  Proposed increases include:

   

  • Base Rate monthly increase of $1.50
  • Consumption Rate total monthly increase of:
    • Annual anticipated O&M expense increase: $0.042 / 100 cubic-feet
    • Water Treatment Plant Maintenance Fee:    $0.08   / 100 cubic-feet
    • Rate Stabilization Fee (O&M reserve):         $0.11   / 100 cubic-feet

                                                                 TOTAL            $0.232 / 100 cubic-feet

 

The proposed increases are detailed in the tables below:

Residential Tiered Base Rate Structure

Meter Size

Current Monthly Rate

Proposed Monthly Rate

5/8”

$28.50

$30.00

3/4”

$28.75

$30.25

1”

$29.00

$30.50

 

Residential Consumption Rate

Current Rate

Proposed Rate

Per 100 Cubic-Feet

Per 100 Cubic-Feet

1.041

$ 1.083

 

 

Proposed Commercial, Industrial and Institutional Base Rate Structure

 

Tiered Base Rate Structure

Meter Size

Current Monthly Rate

Proposed Monthly Rate

3/4”

$28.75

$30.25

1”

$29.00

$30.50

1.5”

$49.00

$50.50

2”

$89.50

$91.00

 

Commercial, Industrial and Institutional Consumption Rate

 

Current Rate

Proposed Rate

Per 100 Cubic-Feet

Per 100 Cubic-Feet

 

$ 1.041

$ 1.083

 

 

Water Treatment Plant Fee (WTP)

The Water Treatment Plant Fee is being implemented to mitigate the variable costs related to water treatment at the Treatment Plant and throughout the District’s Service Area.

The proposed fee is $ 0.08 per 100 cubic-feet.

 

Rate Stabilization Fee (RSF)

The Rate Stabilization Fee is being implemented to ensure an adequate financial reserve in addressing the variable costs related to maintaining the District’s distribution and associated infrastructure.

The proposed fee is $ 0.11 per 100 cubic-feet.

 

Proposed Water Availability Charge (WAC)

The District is proposing to increase the Water Availability Charge (WAC) from the existing $28.75 to $30.25.  This increase is based upon the projected increased expenses associated with the cost of the ongoing O&M of the District’s distribution system. 

 

Proposed Turn-On Fees

The District is proposing to increase the Turn-On Fee to $50.00 and establish a Turn-On After Hours Fee of $100.00.  

 

Proposed Residential Rate Increase

User Comparison

 

The following are examples of how the proposed rate increases and new fees would affect a given customer’s monthly water bill, depending upon water consumption levels.  (Please note that these are merely estimates based upon indicated average use; the impact on any individual customer will vary depending upon their particular consumption by month):

 

 

Low-Volume Use

3,500 Cubic-Feet

37% of Customers

Mid-Volume Use

7,500 Cubic-Feet

25% of Customers

High-Volume Use

12,500 Cubic-Feet

19% of Customers *

Current

Proposed

Current

Proposed

Current

Proposed

           

Base Rate (3/4-inch):

$28.75

$30.25

$28.75

$30.25

$28.75

$30.25

Consumption Rate per 100 cf:

1.041

1.083

1.041

1.083

1.041

1.083

 

Base Rate:

$28.75

$30.25

$28.75

$30.25

$28.75

$30.25

Consumption Rate per 100 cf:

$36.44

$37.91

$78.08

$81.23

$130.13

$135.38

RSF (100 cf * $ 0.11):

$0.00

$3.85

$0.00

$8.25

$0.00

$13.75

WTP Fee (100 cf * $0.08):

$0.00

$2.80

$0.00

$6.00

$0.00

$10.00

Total

$65.19

$74.81

$106.83

$125.73

$158.88

$189.38

 

Difference

$9.62

$18.90

$30.50

*         19% of District Customers use more than 12,500 cubic-feet of water

 

 

Proposed Grant School Service Rate Increases

 

Listed below is the District’s proposed rate increase for Grant School’s monthly Base and Consumption Rate:

 

Base Rate

Meter Size

Current

Proposed

2”

$89.50

$91.00

Consumption Rate Structure

Current Rate

Per 100 Cubic-Feet

Proposed Rate

Per 100 Cubic-Feet

0.906

0.948

       

 

The following example depicts how this proposed rate increase would impact Grant School’s Billings:

 

     

Winter Bill

25,800 Cubic-Feet

Summer Bill

187,000 Cubic-Feet

     

Current

Proposed

Current

Proposed

         

Base Rate (3/4-inch):

$89.50

$91.00

$89.50

$91.00

Consumption Rate per 100 cf:

0.906

0.948

0.906

0.948

             

Base Rate:

$89.50

$91.00

$89.50

$91.00

Consumption Rate per 100 cf:

$233.75

$244.58

$1,694.22

$1,772.76

RSF (100 cf * $ 0.11):

$0.00

$28.38

$0.00

$205.70

WTP Fee (100 cf * $0.08):

$0.00

$20.64

$0.00

$149.60

Total

$323.25

$384.60

$1,783.72

$2,219.06

             

Difference

$61.35

$435.34

             
               

 

Proposed Zone A Pump Surcharge Fee Increases

Below are the proposed Base and Consumption Surcharge rate increases for the Zone A Pump Zone and an example of how this will impact the billing.  The District is not proposing any increase to the Base or Consumption Rate Surcharges for Zone A1 at this time. 

 

Zone A

Surcharge Rates

 

 

Current

Proposed

Base Surcharge:

$ 5.75

$ 6.25

Consumption Surcharge per 100 cf:

$ 0.231

$ 0.241

         

 

The following example depicts how this proposed rate increase would impact Zone A customers:

 

 

Low-Volume Use

3,500 Cubic-Feet

27% of Customers

Mid-Volume Use

7,500 Cubic-Feet

21% of Customers

High-Volume Use

12,500 Cubic-Feet

22% of Customers *

Current

Proposed

Current

Proposed

Current

Proposed

           

Base Rate (3/4-inch):

$28.75

$30.25

$28.75

$30.25

$28.75

$30.25

Consumption Rate per 100 cf:

1.041

1.083

1.041

1.083

1.041

1.083

Base Surcharge:

$5.75

$6.25

$5.75

$6.25

$5.75

$6.25

Consumption Surcharge per 100 cf:

.231

.241

.231

.241

.231

.241

 

Base Rate:

$28.75

$30.25

$28.75

$30.25

$28.75

$30.25

Consumption Rate per 100 cf:

$36.44

$37.91

$78.08

$81.23

$130.13

$135.38

Base Surcharge

$5.75

$6.25

$5.75

$6.25

$5.75

$6.25

Consumption Surcharge per 100 cf:

$8.09

$8.44

$17.33

$18.08

$28.88

$30.13

RSF (100 cf * $ 0.11):

$0.00

$3.85

$0.00

$8.25

$0.00

$13.75

WTP Fee (100 cf * $0.08):

$0.00

$2.80

$0.00

$6.00

$0.00

$10.00

Total

$79.03

$89.50

$129.91

$150.06

$193.51

$225.76

 

Difference

$10.47

$20.15

$32.25

*         30% of Customers in the Zone A area use higher than 12,500 Cubic-Feet.

 

 

Proposed Rate Increases Protest Procedure

If you intend to protest the rate increases and new fees, you must submit a written protest to the District at or before the time set for the public hearing.  If a written protest is filed by a majority of ratepayers/parcel owners, the proposed rate changes and new fees will not be adopted.  

 

A written protest must contain a description of the parcel or parcels in which the party signing the protest owns or is the current rate payer.  A current address or assessor’s parcel number is sufficient to identify the parcel(s). If the party signing the protest is not shown on the last equalized assessment role of Shasta County as the owner of the parcel(s), the protest must contain or be accompanied by written evidence that such party is the owner of the parcel(s).