HomeMy WebLinkAboutRPT 4 WTR SERVICE RVW 04-15-85REPORTS
TO:
WILLIAM HUSTON, CITY MANAGER
FROM:
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY' ENGINEER
WATER SERVICE FINANCIAL REVIEW
The attached analysis, which has been prepared by Reed Jensen, provides six
separate schedules which outlines the effects of the sale of facilities to both
Santa Aha and Orange, and the utilization of the new Columbus-Tustin well.
As shown in Schedule A, the percentage of pumped water vs. percentage of purchased
water is beginning to approach the desired 60% pumped vs. the 40% purchased
ratio. These figures are based upon the shut down of the La Veta well facility
due to its high level of nitrates.
At this time, it does not appear that there will be a need to engage a consultant
to re-evaluate the water rate structure. This rate structure can be reviewed on
an annual basis or as major changes are made to the system operation such a~ the
addition of more pumped water into the system.
If there is any additional information required by any of the Council members,
staff can meet with them on an individual basis.
Bob Ledendecker '
Director of Public Works/City Engineer
BL:jr
Attachment
Inter-Corn
TO: Ron Nault, Bob Ledendecker
FROM: Reed Jensen, Water Service Analyst
SUBdECT: Water Supply Requirements, Costs and Revenue.
Attached are Schedule "A" thru "E" that I have prepared,
per your request, that may be used as information and
analysis.
The schedules are:
Schedule "A#
Schedule "B"
Schedule "C"
Schedule "D"
Schedule "E"
Water Supply Requirement and
Effect of Proposed Changes.
S~m~,ary of Annual Revenue
from Fixed Charges.
Schedule of Fixed Charges in
Revenue by Size and Type.
Estimated Annual 1985-86 Water
Revenue and Effect of Proposed
Change in Sale of Facilities.
Proposed Annual Water Supply
Costs at Proposed 1985-86 Rates
and Effect of Changes in Requirement.
If you have any questions or need additional information,
please let know.
CITY OF TUSTIN WATER SERVICE
WATER SUPPLY REQUIREMENT AND
EFFECT OF PROPOSED CHANGES
(in acre feet)
WATER SUPPLY REQUIREMENT
Pumped Water
Purchased Water
E.O.C.W.D.
City of Orange
Total
Current
1984-85
5940 45
7054 53
206 2
13200 100
Effect After
Changes
Acre feet %
950 (140)
(950) (46)
(206)
-0- (46) (346)
6750 53
6058 47
12808 100
3/25/85 Schedule "A"
CITY OF TUSTIN WATER SERVICE
Summary of
Annual Revenue from Fixed Charges
(dollars)
Single Multiple Elimination For Sale Balance
Type of Family Family Total City of After
Charge Units units Santa AnaOran~e Total Sale
Service Charge 328,529 127,596 456,125 1,813 9,801 11,614 444,511
Custom, er Charge 196,474 13,503 209,977 1,387 7,605 8,992 200,985
Debt ServiceChg. 596,340 255,192 851,532 3,660 19,785 23,445 828,087
1,121,343 396,291 1,517,634 6,860 37,191 44,051 1,473,583
3/22/85 Schedule "B"
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CITY OF TUSTIN WATER SERVICE
ESTIMATED ANNUAL 1985-86 WATER REVENUE
and ~FFECT of PROPOSED CHANGE in SALE of FACILITIES
WATER REQUIREMENT
or
13,200 Acre Feet
5,750,000 ccf
WATER AVAILABLE FOR SALE
Water Requirement
Less Estimated Unaccounted for Water (10%)
Water Available for Sale
5,750,000 ccf
575,000 ccf
5,175,000 ccf
ESTIMATED WATER REVENUE
QUANTITY RATE
Water Available for Sale
Less Water Sales at Lifeline Rate
(13,800 x 36 ccf/yr.
Balance of Water at Regular Rate
5,175,000 ccf
496,800 ccf
4,678~200 ccf
Lifeline Rate (496,800 @ $0.330/ccf)
Excess of Lifeline Rate (4,678,200 @ $0.710/ccf)
Total Revenue from Commodity Rate
$ 163,944
3,321,522
$3,485,466 70%
Fixed Charge Rate (Schedule "C")
Total Estimated Annual Water Revenue
1,517,634 30%
$5,003,100
EFFECT OF SALE ON REVENUE
CITY OF SANTA ANA
Fixed Charge (Schedule "B")
Commodity Charge
$ 6,860
12,936
19,796
CITY OF ORANGE
Fixed Charge (Schedule "B") 37,190
Co~u~lodity Charge 100,070
Net Estimated Annual Water Revenue after Sale
137,260
$4,846,044
3/25/85 Schedule "D"
CITY OF TUSTIN WATER SERVICE
PROPOSED ANNUAL WATER SUPPLY COSTS
at PROPOSED 1985-86 RATES
and EFFECT of CHANGES in REQUIREMENT
CURRENT (1984-85)
Acre Proposed
Feet Rates(l)
Pumped Water 5,940 87
Purchased Water 7,260 228
Totals 13,200
AFTER PROPOSED CHANGES IN REQUIREMENT
Pumped Water 6,750
Purchased Water 6,058
Totals (Schedule "A")
12,808
87
228
Amount
$ 516,780
1,655,280
$2,172,060
$ 587,250
1,381,224
1,968,478
Net Decrease in Water Supply Costs
$ 203,582
(1) UNIT COST OF PROPOSED WATER COSTS (in acre feet)
Pumped Water
Cost of Powe~ $ 55
Replenishment Assessment 32
Proposed Unit Cost to Pump Water $--~ (2)
Purchased Water
EOCWD & City of Orange $264
Service Connection Charge (MWDOC) 2
Interruptible Water Credit (6)
Basin Equity Assessment Credit (32)
Proposed Unit Cost to Purchase Water $228
(2) Does not take into consideration the cost of land,
depreciation or Operating Expenses of Well Equipment.
3/25/85 Schedule "E"