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Home My Public Portal AboutExhibit MSD 11Z 1993 B&V Final Report on Alternative Rate StructuresREPORT ON ALTERNATIVE RATE STRUCTURES FOR THE METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 1994 9, BLACK & VEATCH PROGRESS BY DESIGN 1993 t FINAL REPORT ON ALTERNATIVE RATE STRUCTURES FOR THE METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 1994 MW Rif BLACK & VEATCH PROGRESS BY DESIGN 1993 BLACK & VEATCH 84(X) Ward Parkway, P.O. Box No. 8405, Kansas City, Missouri 64114, (913) 339-2000 October 15, 1993 Mr. Frank G. Kriz Executive Director Metropolitan St. Louis Sewer District 2000 Hampton Avenue St. Louis, MO 63139-2979 Dear Mr. Kriz: We are presenting our Final Report on Alternative Rate Structures for the Metropolitan St. Louis Sewer District. An executive summary and supporting calculations (Appendix RC) for the final report precedes the detailed text and appendices of our original report dated February 26, 1993. As a result of policy decisions by the Board of Trustees, the final report includes the following changes from the February 1993 report. (1) Estimated infiltration/inflow (I/I) is allocated to user classes assuming that 37 percent of the total is distributable on a customer basis and the remaining 63 percent is distributable on a volume basis. The I/I allocation in the February report was 50 percent on a customer basis and 50 percent on a volume basis. (2) The capital improvement surcharge will continue in its present form. The February report proposed to change the current rate structure to a form consistent with the rate form proposed for the operation, maintenance, and replacement (OM&R) user charges. Therefore, capital cost of $25,200,000 are included in the detailed rate development calculations of the original report. Because capital related costs will continue to be recovered by the capital improvement surcharge, the capital costs and associated user charges shown in the revised calculations are equal to zero. (3) To maintain consistency with the excess strength threshold limits of the capital improvement surcharge, the suspended solids limit for the OM&R user charges will remain at 350 parts per million (ppm) instead of the 300 ppm recommended in the original report. Mr. Frank G. Kriz Page 2 October 15, 1993 (4) Revenue shortfall resulting from low income assistance through reduced capital improvement surcharges to qualifying low income users will be met from available fund balances. Low income assistance for the OM&R portion of the user charges is being proportionately absorbed by all non - low income customers through increased user charges. (5) The base charge has been subdivided into three components: (1) a billing and collection charge; (2) a system availability charge; and (3) a non- residential compliance charge. The compliance charge was previously included in the non-residential base charge and designated as a "monitoring charge" in the supporting calculations. We appreciate this opportunity to be of service to MSD and will be pleased to discuss this report with you at a mutually acceptable time. Sincerely, BLACK & VEATCH 6:)aa-e7;2//-40- Paul E. Hoback Partner KDB:lkm Enclosure Contents Page Executive Summary RES-1 Wastewater Rate Structure RES-1 Stormwater Rate Structure RES-2 Units of Service RES-2 Low Income Assistance Program RES-4. Cost of Service Allocations RES-5 User Charge Adjustments RES-6 List of Tables Table A Previous OM&R Charges and Existing Capital Imrpovement Surcharges Table B Rates for Fiscal Year 1994 Table C Alternative Rate Structure Impact on Typical Customers Appendices RES-7 RES-9 RES-10 Appendix RC Cost of Service Rate Model RC -1 RTC -1 1 Final Report on Alternative Rate Structures for the Metropolitan St. Louis Sewer District Fiscal Year 1994 Executive Summary 1 1 The Metropolitan St. Louis Sewer District (MSD) was incorporated under a plan (Plan) approved at special election in 1954 and which specifies the MSD duties and power. The Plan grants to the MSD Board of Trustees (Board) the power to establish rates, rentals, and other charges to be collected from all real property served by MSD. Such rates can reflect a broad range of methods but must be "fair and reasonable." This study examines potential changes to the existing wastewater and stormwater user charge systems to determine if more equitable rate forms could be economically implemented. The alternative rate forms studied include provisions for providing assistance to low income residential users. Proposed charges are designed to meet U.S. Environmental Protection Agency (EPA) and Missouri Department of Natural Resources (MDNR) user charge requirements and reflect fair and equitable sharing of costs among all user classes. The original report, dated February 26, 1993, includes detailed analyses reflecting cost of service concepts and Board of Trustees (Board) general policy directives. The report, which is included in its entirety following this final report, provided the basis for public hearings before the Board and resultant specific Board policy directives as to rate forms. This final report reflects final policies and calculations supporting the rates adopted by the Board on June 16, 1993. Wastewater Rate Structure A variety of wastewater billing methods are practiced throughout the country, most of which equate contributed wastewater volume to water usage. In areas where some or all water customers are not metered, a standard or predominate billing method is not apparent. All methods require a degree of estimation and assumptions in their applications. Based upon our understanding of the MSD Board's goals, detailed discussions with MSD staff, and practicality considerations, an alternative wastewater rate form has been developed. The alternative rate form will (1) convert all metered accounts to a rate based on metered water consumption and (2) convert all unmetered residential accounts to a rate based on property attributes such as rooms and fixtures. This is basically the same rate form used by the St. Louis City Water Department for billing its customers. The rate structure proposed for metered residential customers includes a base charge consisting of a billing and collection component and a system availability component, plus a volume charge, similar in form to the rates now charged to non-residential customers. It is proposed that contributed wastewater volume for metered single family users be based on their respective average daily metered water usage during a period best equated to contributed wastewater volume. For the central midwest region, this is a winter period when lawn irrigation and other outdoor water usage is at a minimum. The "Best Equated Period" for MSD is the period covered by bills that are based on meter readings from February 1 through April 30. Contributed wastewater volume for all other metered customers will continue to be based on annual water usage with exemption allowances for any water that does not enter the sewer system. The rate structure for unmetered residential customers is proposed to be based on estimated water usage for various housing attributes. In order to utilize the existing attribute inventory and billing database, attributes used by the City of St. Louis (City) are recom- mended for wastewater user charges. To provide an initial schedule of wastewater charges consistent with the City's existing unmetered water charges, it is recommended that the average water usage allowances be used as the basis for determining unmetered residential wastewater flow. Wastewater user charges for unmetered customers are proposed to be based on these flows and the same unit charges determined for metered residential users. Stormwater Rate Structure Several alternative stormwater classification methodologies were studied as the potential basis for equitable stormwater user charges. To provide greater equity, the existing flat rate structure should be replaced by a base charge plus impervious area charge. MSD has developed a database of impervious area for all properties based on the best available data. When measurement of actual impervious area is not cost-effective, the best available evidence of impervious area, such as information maintained in official St. Louis City and County Assessor's real estate records or obtained from aerial photography, is used. Units of Service The number of units of service required by each customer class provides a means to distribute costs proportionately among the various customer classes. The service requirements for which each class of customers is responsible include the volume of wastewater contributed, infiltration/inflow, peak capacity, wastewater strength, impervious area, and the RES-2 number of bills rendered. The customer groups or user classes required for the proposed rate structure include: Residential Non -Residential • Unmetered Single Family • Normal Wastewater Strength • Metered Single Family • Excess Wastewater Strength Unmetered Multifamily • Metered Multifamily Billable wastewater volume for metered single family users will be based on actual water usage during the period best equated to contributed wastewater volume. For all other metered users, billable wastewater volume will be based on actual water usage with exemption allowances available for water not discharged to the sewer system. Billable wastewater volume for unmetered residential users will be based on the same indoor water usage attributes used by the City's unmetered water rates which are as follows: • 16 gallons per day (gpd) for each room of a dwelling. • 60 gpd for each water closet. • 50 gpd for each bath or separate shower. A review of the City's unmetered and unaccounted water usage indicates that the estimated water sales based on the above average water usages are reasonable. All water entering the sewer system by ground water infiltration or surface water inflow that reaches the wastewater treatment plants is considered to be infiltration/inflow. All surface water that bypasses the wastewater treatment plants or is discharged directly to a watercourse is considered to be stormwater. District -wide infiltration/inflow is estimated to be about 38 percent of the total wastewater flow reaching the treatment plants on an annual basis. Each user of the wastewater system must bear a proportionate share of the costs associated with infiltration/inflow. In accordance with MSD policy, estimated infiltration/inflow volume is allocated to user classes assuming that 37 percent of the total is distributable on a customer basis and the remaining 63 percent is distributable on a contributed volume basis. The responsibility for collection system capacity cost varies with the estimated flow rates of both contributed wastewater and infiltration/inflow attributable to each user class. Infiltration/inflow is estimated to comprise about 61 percent of the total peak flows based on a peak to average ratio of 2.5 times that of contributed flow. The wastewater strength responsibility of each user class, normally expressed in terms of biochemical oxygen demand (BOD) and suspended solids, is based on the estimated average strength concentrations and contributed volume for each user class. Average contributed strength concentrations for normal or domestic strength wastewater are determined to be 220 parts per million (ppm) for BOD and 200 ppm for suspended solids. Allowances RES-3 0 1 e t 1 for average wastewater strength associated with infiltration/inflow are estimated to be 5 ppm for BOD and 45 ppm for suspended solids. Estimates of BOD and suspended solids loadings in excess of normal strength limits are assigned to the surcharge customer classification and are identified separately. Responsibility for stormwater removal services is related to the amount of impervious area of each customer's property. Building dimensions maintained by the City and County assessor's offices for individual properties and other impervious areas will be used as the billing basis for the revised stormwater user charges. All billing and collection costs and a portion of the costs related to infiltration/inflow are allocated to user classes on the basis of the respective number of accounts or services. Costs related to billing and collection are proposed to be recovered equally from wastewater and stormwater customers. Low Income Assistance Program Low income wastewater user charge assistance programs have been implemented by only a few wastewater utilities. Although many wastewater utilities support lower wastewater user charges for low income residents, implementation, billing, and administration problems have limited their establishment. Federal regulations provide five general provisions for establishing lower user charges for low income residential users. These provisions include: (1) a public notice and hearing concerning the lower rates must be provided, (2) low income users must be defined as any residence with a combined household income below the Federal poverty level or by State law or regulation, (3) low income rates must be defined as a percentage of the user charge rates charged other residential users, (4) the cost for low income assistance must be proportionately absorbed by all other user classes, and (5) the total revenue for operation and maintenance, including replacement, of all facilities must not be reduced as a result of providing low income assistance. MSD has chosen to use the State's Division of Family Services low income criteria to determine program eligibility. Use of existing programs to determine eligibility for assistance will help minimize related MSD administration costs. This requirement approxi- mates 125 to 130 percent of the Federal poverty guidelines shown below. I I I I I I I I B I I I I I Federal Poverty Family Size Guidelines $ One person 6,810 Two persons 9,190 Three persons 11,570 Four persons 13,950 Five persons 16,330 Six persons 18,710 Seven persons 21,090 Eight persons 23,470 For each additional family member add 2,380 At the present time, low income assistance is limited to users that are directly billed by MSD. It is MSD's intention to expand low income assistance to users who are not directly billed by MSD as soon as practicable. Approximately 62,000 households in the MSD service area participate in the State's low income assistance programs. The level of subsidy to be provided to qualified low income users is proposed to be 50 percent of the wastewater user charge, stormwater user charge, and capital improvement surcharge rates charged other residential users. Implementation and administration costs are assumed to be 15 percent of the total subsidies provided the low income users. It is estimated that the total potential low income subsidy, including administration costs, will be about five million dollars per year. Cost of Service Allocations In developing an equitable schedule of charges for wastewater or stormwater service, costs of service are first allocated by system functions before being distributed proportionately between the various customer classes. Costs of service may be classified and assigned to five basic functional cost components including: • Volume • Stormwater • Capacity • Customer • Strength Unit costs of service are developed by dividing the allocated costs of service by the respective units of service. For rate design purposes, the low income subsidies are included in the development of unit costs of service. This ensures that the costs of the low income program are proportionately absorbed by all other user classes and that revenue for operation and maintenance, including replacements, is not reduced as the result of establishing the program. Costs are assigned to the various customer classes by multiplying assigned units of service by the unit costs of service. Total cost of service for fiscal year 1994 is projected to exceed $180 million. Of this amount, $25,200,000 is projected to be recovered from the existing capital improvement surcharge, with the remaining costs to be recovered by OM&R charges. To meet this cost, revenue under existing OM&R charges must be increased by about 89 percent. A large portion of this increase reflects the proposed expansion of stormwater system services and elimination of the stormwater related ad valorem tax and other sources of revenue previously used to meet the minimum stormwater related requirements. 1 i User Charge Adjustments In the development of schedules of rates for wastewater and stormwater service, a basic consideration is to establish equitable charges to customers commensurate with the cost of providing service. The only method of assessing entirely equitable rates for wastewater service would be to determine each customer's bill based upon their particular service requirements. Since this is totally impractical and only theoretical, wastewater rates are usually designed to meet average conditions for groups of customers having similar service requirements. Rates should be reasonably simple in application and subject to as few misinterpretations as possible. The previous wastewater user charges became effective July 1, 1992. All single family and most multifamily residential customers were charged a uniform flat rate regardless of whether or not they had metered water service. All non-residential customers and some of the larger multifamily customers were charged for wastewater service based on their annual water usage with allowances, as appropriate, for water that was not discharged to the sewer system. The rate structure for non-residential customers was composed of a quarterly base charge and a single volume charge. In addition, surcharges are applicable to non- residential customers which discharge wastewater having BOD or suspended solid strengths above normal strength limits. Normal strength wastewater is considered to be less than 300 parts per million (ppm) for BOD and less than 350 ppm for suspended solids. Previous stormwater user charges were charged on a flat rate per dwelling unit or per property basis for all MSD customers. Stormwater related ad valorem taxes were also assessed to customers within the original service area. A summary of the previous rates is shown in Table A. Rates based on the rate structure proposed in the February 1993 report were adopted by MSD on June 16, 1993 and became effective on July 1, 1993. Differences between the proposed and adopted rate form are (1) the retention of the existing method of recovering capital costs, i.e., the capital improvement surcharge, and (2) the level of detail used to assess customer related charges. The previously proposed base charge for metered customer is now RES-6 Table A Previous OM&R Charges and Existing Capital Improvement Surcharges OM&R Portion Wastewater User Charges Residential Single Family — $/Month 8.18 2.50 10.68 Multifamily (per unit) — $/Month 6.15 1.88 8.03 Non—residential Base Charge — $/Month (b) 7.78 0.75 8.53 Volume Charge — $/Ccf 0.58 0.19 0.77 Excess Strength Surcharge — $/Ton Suspended Solids over 350 ppm 117.00 44.30 161.30 BOD over 300 ppm 195.50 65.70 261.20 COD over 600 ppm 97.75 32.85 130.60 Stormwater User Charges Single Family — $/Month 0.24 0.24 Multifamily (per unit) — $/Month 0.18 0.18 Non—residential — $/Month 0.24 0.24 OM&R — Operation, maintenance, and replacement Ccf — hundred cubic feet ppm — parts per million Capital Portion (a) Total (a) Existing capital improvement surcharges. (b) Includes non—residential compliance charges. RES-7 t 1 1 r subdivided into three components: (1) a billing and collection charge, (2) a system availability charge, and (3) a non-residential compliance charge. A summary of the existing rates is shown in Table B. Rates adopted for residential customers include separate wastewater charges for unmetered and metered residential customers. For comparison, continuation of the previous flat rate structure would have produced uniform district -wide residential charges of $14.80 per month for single family residential customers and $11.11 per unit per month for multifamily residential customers. The rate form previously charged non-residential customers has been continued. Pretreatment and industrial monitoring costs by non-residential customers are recovered by a separate compliance charge. This charge was previously included in the non-residential customer's base charge. As shown in Table B, stormwater user charges have been changed from the previous flat charge per month to a monthly base charge plus a monthly charge per hundred square feet (Csf) of impervious area. Stormwater user charges based on impervious area were adopted to be implemented on a district -wide basis beginning January 1, 1994. Also, as indicated by Table B, Footnote (a), the MSD has adopted provisions for rate relief to qualified low income residential customers. The adopted rates include a 50 percent reduction of all wastewater and stormwater user charges as well as the capital improvement surcharge to such customers. To qualify for this relief, residential customers' income must not exceed eligibility requirements for the State's assistance programs and must be directly billed by MSD. It is MSD's intention to expand relief to qualified customers not directly billed by MSD as soon as it becomes practical. A comparison of typical bills, expressed on a monthly basis, under previous rates, updated rates based on the previous rate structure, and adopted rates for fiscal year 1994 is presented in Table C. The major difference between the bills based on the updated previous method and bills based on the adopted rates is the reduction of residential stormwater charges and significant increase of non-residential stormwater charges due to the implementation of the new impervious area billing basis. The bills shown in Table C are for services provided to non -low income customers. Bills for low income residential customers would be one-half of the amounts, under updated or adopted charges, indicated in Table C. The cost impact on non -low income single family residential customers for providing low income assistance will average about $0.45 per month. In comparison, total savings for single family low income households will average about $8.90 per month. Increases in charges to non-residential customers as a result of the low income assistance program would range from 2 to 3 percent. Table B Rates for Fiscal Year 1994 OM&R Capital Portion Portion Total(a) Wastewater User Charges Unmetered - $/Month Billing & Collection Charge 0.37 0.00 0.37 System Availability Charge 3.72 0.00 3.72 Per Room 0.64 0.00 0.64 Per Water Closet 2.41 0.00 2.41 Per Bath 2.01 0.00 2.01 Per Separate Shower 2.01 0.00 2.01 Metered Monthly Charges - $ Billing & Collection Charge System Availability Charge Compliance Charge (b) Volume Charge - $/Ccf Excess Strength Surcharge - $iTon Suspended Solids over 350 ppm BOD over 300 ppm COD over 600 ppm 0.37 3.72 7.40 0.99 127.40 244.10 122.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.37 3.72 7.40 0.99 127.40 244.10 122.05 Capital Improvement Surcharges Residential Single Family - $/Month 2.50 2.50 Multifamily (per unit) - $/Month 1.88 1.88 Non- residential Base Charge - $/Month (b) 0.75 0.75 Volume Charge - $/Ccf 0.19 0.19 Excess Strength Surcharge - $/Ton Suspended Solids over 350 ppm 44.30 44.30 BOD over 300 ppm 65.70 65.70 COD over 600 ppm 32.85 32.85 Stormwater User Charges Billing & Collection Charge - $/Mo. 0.36 0.00 0.36 Impervious Charge - $/Month/Csf 0.173 0.000 0.173 OM&R - Operation, maintenance, and replacement Ccf - hundred cubic feet Csf - hundred square feet ppm - parts per million (a) Rates for all users except qualified low income residential users. Charges for low income residential users are 50 percent of the charges for all other residential users. (b) Non-residential accounts only. RES-9 Table C Alternative Rate Structure Impact on Typical Customers 1 r Previous FY 1993 (a) Updated Current Method FY 1994 (b) $/mo. $/mo. Metered Single Family Customer (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 1230 Wastewater Capital Improvement Surcha 2.50 2.50 Stormwater User Charge 0.24 5.87 Total 10.92 20.67 Adopted FY 1994 (b) $/mo. 13.00 2.50 3.15 18.65 Unmetered Single Family Customer (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. A Wastewater User Charge 8.18 12.30 11.71 Wastewater Capital Improvement Surcha 2.50 2.50 250 Stormwater User Charge 0.24 5.87 251 Total 10.92 Metered Multifamily Customer (4 Units, 28Ccf/Mo Wastewater User Charge 24.60 Wastewater Capital Improvement Surcha 7.52 Stormwater User Charge 0.72 Total 32.84 20.67 . and 2,073 sf Imp. Area) 36.92 7.52 17.60 62.04 Unmetered Multifamily Customer (16 Rooms, 4 Water Closets, 4 Baths and Wastewater User Charge 24.60 36.92 Wastewater Capital Improvement Surcha 7.52 7.52 Stormwater User Charge 0.72 17.60 Total 32.84 62.04 Non-residential Customer (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge 75.64 126.44 Wastewater Capital Improvement Surcha 22.98 22.98 Stormwater User Charge 0.24 5.87 Total 98.86 155.29 Large Surcharge Customer (271,315 Ccf, 962 Tons SS, 1,961 Tons BOD/Mo., and Wastewater User Charge 568,893.98 775,490.36 Wastewater Capital Improvement Surcha 193,160.00 193,160.00 Stormwater User Charge 0.24 5.87 Total 762,054.22 968,656.23 Large Stormwater Customer (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 19,256.21 Wastewater Capital Improvement Surcha 3,694.35 3,694.35 Stormwater User Charge 0.24 5.87 Total 14,977.57 22,956.43 16.72 31.81 752 3.95 43.28 2,055 sf Imp. 32.01 7.52 3.92 43.45 127.32 22.98 532.70 683.00 789,351 sf Imp 775,49124 193,160.00 1,365.94 970,017.18 19,257.09 3,694.35 7,390.37 30,341.81 Ccf - Hundred cubic feet sf - square feet (a) Based on revenue requirements of approximately $104 million. (b) Based on revenue requirements of approximately $181 million. Note: These are average or typical customers. Some customers will pay more and some will pay less RES-10 Appendix RC Cost of Service Rate Model File• RATES Benefits: Client. ST. LOUIS MSD Group Insurance $3,788,000 Date• 11 -Oct -93 Pension Fund $3,038,000 Project No... 19861.101 Unemployment Ins. $38,000 By. KDB Hospitalization Ins. $427,450 Payroll Accruals $687,517 Test Year 1994 $7,978,967 Base Year 1993 Base + Low Income Assistance + Lemay ORS - Capital Improvement Surcharge + Revised I/I % ALLOCATION OF TOTAL PERSONAL SERVICES EXPENSE Fiscal Year 1994 Budget Personal Allocated Personal Services Expense Line Services Regular No. Department Expense Salaries Benefits(a) All Other Total $ $ $ $ $ 1 Board of Trustees 110,412 0 0 110,412 110,412 2 Secretary Treasurer/ Internal Auditor 371,475 331,550 67,388 39,925 438,863 3 Civil Service Commission 273 0 0 273 273 4 Communications 281,580 180,001 36,586 101,579 318,166 5 Personnel 8,849,086 633,296 128,719 236,823 998,838 6 Executive Director 400,101 375,936 76,410 24,165 476,511 7 Capital Imprvts. Compliance Projects 257,549 240,134 48,808 17,415 306,357 8 Finance 2,064,776 1,797,328 365,312 267,448 2,430,088 9 Information Systems 1,505,106 1,256,764 255,441 248,342 1,760,547 10 General Counsel 648,120 453,619 92,199 194,501 740,319 11 Maintenance 19,005,523 16,181,648 3,288,965 2,823,875 22,294,488 12 Wastewater 10,690,813 9,434,902 1,917,670 1,255,911 12,608,483 13 Environmental Compliance 3,650,706 1,987,967 404,060 1,662,739 4,054,766 14 Engineering 5,460,062 5,004,705 1,017,220 455,357 6,477,282 15 Construction Management 1,502,292 1,378,517 280,189 123,775 1,782,481 16 Future 0 0 0 0 0 17 Total 54,797,874 39,256,367 7,978,967 7,562,540 54,797,874 (a) Allocated based on regular salaries. Benefits consist of Group Insurance (122), Pension Fund Contributions (123), Unemployment Insurance (124), Hospitalization Insurance (125),(131), and Payroll Accruals (103),(104),(105). RC -1 GENERAL FUND BUDGET, BY DEPARTMENT, BY OBJECT Fiscal Year 1994 Department All Other 0 & M Expense Personal Op. Costs Op. Costs Admin & Capital Services Mat & Sery Bldg & Plts Gen'1 Exp Outlay (100) (200) (300) (400) Total (500) TOTAL $ $ $ $ $ $ $ Board of Trustees 110,412 0 0 357,736 357,736 525 468,673 Secretary Treasurer/ Internal Auditor 0 0 0 0 Bond & Insurance Premiums 0 0 1,095,152 1,095,152 0 1,095,152 All Other 438,863 0 0 77,124 77,124 6,405 522,392 Civil Service Commission 273 0 0 12,968 12,968 0 13,241 Communications 318,166 0 0 197,979 197,979 5,775 521,920 Personnel 998,838 0 0 252,001 252,001 27,300 1,278,139 Executive Director 476,511 0 0 29,191 29,191 12,600 518,302 Capital Imprvts. Compliance Projects 306,357 0 0 45,570 45,570 2,100 354,027 Finance 2,430,088 0 0 1,207,955 1,207,955 31,500 3,669,543 Information Systems 1,760,547 0 917,536 1,148,492 2,066,028 103,215 3,929,790 General Counsel 740,319 0 0 696,413 696,413 4,725 1,441,457 Maintenance 0 0 0 0 Electrical Usage 0 2,512,650 0 2,512,650 0 2,512,650 Gas Usage 0 100,320 0 100,320 0 100,320 All Other 22,294,488 6,487,215 690,480 290,693 7,468,388 7,150,500 36,913,376 Wastewater 0 0 0 0 Ash Hauling 420,000 0 0 420,000 0 420,000 Electrical Usage 0 8,041,950 0 8,041,950 0 8,041,950 Gas Usage 0 4,404,675 0 4,404,675 0 4,404,675 All Other 12,608,483 5,520,924 1,635,060 105,799 7,261,783 182,700 20,052,966 Environmental Compliance 4,054,766 145,617 61,320 81,858 288,795 462,000 4,805,561 Engineering 6,477,282 49,350 0 793,275 842,625 108,150 7,428,057 Construction Management 1,782,481 115,080 0 46,568 161,648 26,250 1,970,379 Future 0 0 0 0 0 0 0 Total 54,797,874 12,738,186 18,363,991 6,438,774 37,540,951 8,123,745 100,462,570 RC -2 e REPLACEMENT AND CAPITAL COSTS Fiscal Year 1994 Total Emergency Fund Accrual 1,000,000 Capital Outlay (500) 8,123,700 Replacements Major Sanitary Sewers 30,900,000 Wastewater System 16,000,000 Storm Sewers 12,000,000 Construction Sanitary Sewers 0 Storm Sewers 0 Treatment Plants 0 Consent Decree Projects Sanitary Facilities 0 Debt Service— Storm Sewers 0 MISCELLANEOUS INCOME Fiscal Year 1994 Total Ad Valorem Taxes (2¢ Admin.) 3,193,000 Reimb. Engr., Survey & Inspection (OMCI) 600,000 Engineering Service Fees Construction Inspection 652,000 Plan Review 279,000 Machine Tap 51,000 Connection Permit & Inspection 35,000 Construction Permits 32,000 Project Bid Fees 37,000 Engineering Prints & Specifications 14,500 Subtotal 1,100,500 Reimbursable Maintenance Sewer Improvements 19,000 Contract Agreements 1,000 Interest Income 575,000 Industrial Customers Wastewater Monitoring 180,000 Pretreatment Program Permits 90,000 Subtotal 270,000 Waste Hauler Fees 385,000 Miscellaneous Income Late Charges 2,155,300 Bad Debt Expense ( 3,534,200) SSC Lien Interest & Fees 262,500 Miscellaneous Revenue (a) 66,000 Prior Year Available Funds 0 Subtotal (1,050,400) Total 5,093,100 (a) Includes return check charges, miscellaneous income, sale of scrap and other reimbursements. 1 RC -4 ALLOCATION OF OPERATION AND MAINTENANCE EXPENSE TO FUNCTIONAL COST COMPONENTS Fiscal Year 1994 Direct Line No. Item Personal Services 1 Board of Trustees 2 Secretary Treasurer/ Internal Auditor 3 Civil Service Commission 4 Communications 5 Personnel 6 Executive Director 7 Capital Imprvts. Compliance Projects 8 Finance 9 Information Systems 10 General Counsel 11 Maintenance 12 Wastewater 13 Environmental Compliance 14 Engineering 15 Construction Management 16 Future 17 Total All Other 18 Board of Trustees Secretary Treasurer/ Internal Auditor 19 Bond & Insurance Premiums 20 All Other 21 Civil Service Commission 22 Communications 23 Personnel 24 Executive Director 25 Capital Imprvts. Compliance Projects 26 Finance 27 Information Systems 28 General Counsel 29 Maintenance Wastewater 30 Ash Hauling 31 All Other 32 Environmental Compliance 33 Engineering 34 Construction Management 35 Future 36 Total 37 Subtotal Direct Expenses 38 Total Indirect Expenses Utilities 39 Maintenance Department 40 Wastewater Department 41 Total Total S 110,400 438,900 300 318,200 998,800 476,500 306,400 2,430,100 1,760,500 740,300 22,294,500 12,608,500 4,054,800 6,477,300 1,782,500 0 Indirect Total S Total $ 110,400 0 438,900 0 300 0 0 318,200 998,800 0 476,500 0 0 306,400 1,081,400 1,348,700 1,443,600 316,900 740,300 0 0 22,294,500 0 12,608,500 0 4,054,800 0 6,477,300 0 1,782,500 0 0 Volume S Capacity $ 306,400 Suspended Solids $ BOD $ Storm All Indust: Water Customers Custom 14,268,500 8,026,000 3,404,300 1,260,900 2,269,500 5,673,800 `0,500 40,500 1,743,600 3,821,600 2,655,700 855,600 926,900 318,200 1,348,700 316,900 2,230,2 54,798,000 5,290,200 49,507,800 3,404,300 20,513,000 2,310,000 5,714,300 13,352,200 1,983,800 2,230,2 357,700 357,700 1,095,200 77,100 13,000 198,000 252,000 29,200 45,600 1,208,000 2,066,000 696,400 7,468,400 420,000 7,261,800 288,800 842,600 161,600 0 22,481,400 2,613,000 12,446,600 15,059,600 42 Total O&M Expense 92,339,000 Less Costs Met From Other Revenue 43 Ad Valorem Tax Revenue ') 3,193,000 44 Transfers from OMCI Funds 600,000 45 Engineering Service Fees 1,100,500 Reimbursement of Maintenance Expense 46 Sewer Improvements 47 Contract Agreements 48 Interest Income 49 Industrial Customers 50 Waste Haulers 51 Miscellaneous Income 52 Total 19,000 1,000 575,000 270,000 385,000 (1,050,400) 5,093,100 53 Net O&M Expense 87,245,900 1,095,200 77,100 13,000 0 0 0 0 0 198,000 252,000 0 29,200 0 0 45,600 537,600 670,400 1,694,100 371,900 696,400 0 0 7,468,400 0 420,000 0 7,261,800 0 288,800 0 842,600 0 161,600 0 0 45,600 4,779,800 2,688,600 420,000 1,161,900 653,600 2,033,300 3,413,000 2,900 2,900 124,200 497,100 345,500 77,600 84,000 198,000 670,400 371,900 4,752,300 17,729,100 1,161,900 6,053,700 2,456,200 3,415,900 3,242,300 1,240,300 67,236,900 10,042,500 10,042,500 158,80 158,80 4,566,200 26,566,700 4,766,200 9,130,200 16,594,500 3,224,100 2,389,00 682,000 3,968,000 711,900 1,363,700 2,478,600 481,600 356,701 2,613,000 1,045,200 914,600 12,446,600 2,862,700 373,400 1,742,500 7,468,000 15,059,600 3,907,900 1,288,000 1,742,500 7,468,000 653,200 92,339,000 9,156,100 31,822,700 7,220,600 17,961,900 19,726,300 3,705,700 2,745,70( 653,200 0 3,193,000 600,000 1,100,500 19,000 1,000 575,000 270,000 385,000 (1,050,400) 5,093,100 216,800 1,261,600 226,300 433,600 788,100 153,100 113,500 561,300 600,000 539,200 C 300 39,000 7,700 (71,300) 192,500 19,000 100 400 200 227,200 40,800 78,100 a a 141,900 27,600 20,400 270,000 196,400 180,900 (415,000) (74,500) (142,600) (259,200) (50,400) (37,400 1,654,200 389,400 550,200 1,810,000 130,300 366,500 87,245,900 8,963,600 30,168,500 6,831,200 17,411,700 17,916,300 3,575,400 2,379,200 (a) Applied to allocated Indirect Expenses. RC -5 ALLOCATION OF OPERATION AND MAINTENANCE EXPENSE TO FUNCTIONAL COST COMPONENTS Fiscal Year 1994 Direct 1 1 Line Indirect Suspended Storm All Industr No. Item Total Total Total Volume Capacity Solids BOD Water Customers Custom % % % % % % % % % % Personal Services 1 Board of Trustees 100.00% 100.00% 0.00% 2 Secretary Treasurer/ Internal Auditor 100.00% 100.00% 0.00% 3 Civil Service Commission 100.00% 100.00% 0.00% 4 Communications 100.00% 100.00% 5 Personnel 100.00% 100.00% 0.00% 100.00% 6 Executive Director 100.00% 100.00% 0.00% 7 Capital Imprvts. Compliance Projects 100.00% 100.00% 100.00% 8 Finance 100.00% 44.50% 55.50% 55.50% 9 Information Systems 100.00% 82.00% 18.00% 18.00% 10 General Counsel 100.00% 100.00% 0.00% 11 Maintenance 100.00% 100.00% 64.00% 36.00% 12 Wastewater 100.00% 100.00% 27.00% 10.00% 18.00% 45.00% 13 Environmental Compliance 100.00% 100.00% 1.00% 1.00% 43.00% 55.00 14 Engineering 100.00% 100.00% 59.00% 41.00% 15 Construction Management 100.00% 100.00% 48.00% 52.00% 16 Future 0.00% 0.00% 17 Average 100.00% 9.65% 90.35% 6.21% 37.43% 4.22% 10.43% 24.37% 3.62% 4.07 All Other 18 Board of Trustees 100.00% 100.00% 0.00% Secretary Treasurer/ Internal Auditor 19 Bond & Insurance Premiums 100.00% 100.00% 0.00% 20 All Other 100.00% 100.00% 0.00% 21 Civil Service Commission 100.00% 100.00% 0.00% 22 Communications 100.00% 100.00% 100.00% 23 Personnel 100.00% 100.00% 0.00% 24 Executive Director 100.00% 100.00% 0.00% 25 Capital Imprvts. Compliance Projects 100.00% 100.00% 100.00% 26 Finance 100.00% 44.50% 55.50% 55.50% 27 Information Systems 100.00% 82.00% 18.00% 18.00% 28 General Counsel 100.00% 100.00% 0.00% 29 Maintenance 100.00% 100.00% 64.00% 36.00% Wastewater 30 Ash Hauling 100.00% 100.00% 100.00% 31 All Other 100.00% 100.00% 16.00% 9.00% 28.00% 47.00% 32 Environmental Compliance 100.00% 100.00% 1.00% 1.00% 43.00% 55.009 33 Engineering 100.00% 100.00% 59.00% 41.00% 34 Construction Management 100.00% 100.00% 48.00% 52.00% 35 Future 0.00% 0.00% 36 Average 100.00% 21.14% 78.86% 5.17% 26.93% 10.93% 15.19% 14.42% 5.52% 0.719 37 Subtotal Direct Expenses 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.559 38 Total Indirect Expenses 100.00% 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.559 Utilities 39 Maintenance Department 100.00% 100.00% 40.00% 35.00% 25.00% 40 Wastewater Department 100.00% 100.00% 23.00% 3.00% 14.00% 60.00% 41 Average 100.00% 100.00% 25.95% 8.55% 11.57% 49.59% 4.34% 0.00% 0.00% 42 Total O&M Expense 100.00% 100.00% 9.92% 34.46% 7.82% 19.45% 21.36% 4.01% 2.9791 Less Costa Met From Other Revenue 43 Ad Valorem Tax Revenue a) 100.00% 44 Transfers from OMCI Funds 100.00% 45 Engineering Service Fees 100.00% Reimbursement of Maintenance Expense 46 Sewer Improvements 100.00% 47 Contract Agreements 100.00% 48 Interest Income 100.00% 49 Industrial Customers 100.00% 50 Waste Haulers 100.00% 51 Miscellaneous Income 100.00% 52 Average 100.00% 53 Net O&M Expense 100.00% 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 355% 100.00% 100.00% 100.00% 51.00% 49.00% 100.00% 100.00% 100.00% 25.00% 11.00% 40.00% 24.00% 100.00% 6.78% 39.51% 7.10% 13.58% 24.68% 4.80% 3.55% 100.00% 100.00% 100.00% 2.00% 51.00% 47.00% 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.55% 100.00% 3.78% 32.48% 7.65% 10.80% 35.54% 2.56% 7.20% 100.00% 10.27% 34.58% 7.83% 19.96% 20.54% 4.10% 2.73% (a) Applied to allocated Indirect Expenses. RC -6 1 ALLOCATION OF ESTIMATED PLANT INVESTMENT, REPLACEMENTS,AND OTHER CAPITAL COSTS TO FUNCTIONAL COST COMPONENTS Fiscal Year 1994 Line No. Item Collection System 1 Sanitary Sewers 2 Storm Sewers 3 Combined Sewers 4 Pumping Stations 5 Total Collection System Treatment Facilities 6 Raw Wastewater Pumping 7 Preliminary Treatment 8 Primary Sedimentation 9 Aeration/Reaeration/Nitrification 10 Secondary Sedimentation 11 Recirculation Pumping 12 Chlorination 13 Lagoons & Aeration Equipment 14 Sludge Treatment 15 Vacuum Filtration 16 Incineration 17 By Pass & Outfall Works 18 Administrative & General 19 Total Treatment Facilities 20 Subtotal Estimated Plant investment 21 General Plant 22 Total Estimated Plant Investment Replacements 23 Emergency Fund Accrual 24 Capital Outlay 25 Major Sanitary Sewer Replacements 26 Wastewater System Replacements 27 Storm Sewer Replacements 28 Total Replacements Other Capital 29 Sanitary Sewer Construction 30 Sanitary Facilities— Consent Decree 31 Treatment Plant Construction 32 Storm Sewer Construction 33 Storm Sewer Debt Service (1) (2) (3) Total 373,400,000 197,125,000 135,780,000 81,213,000 787,518,000 7,638,000 28,837,000 11,377,000 104,432,000 63,256,000 1,832,000 3,995,000 9,691,000 130,634,000 908,000 63,984,000 19,615,000 112,001,000 Volume 11,377,000 63,256,000 1,832,000 3,995,000 26,321,355 Capacity 373,400,000 40,734,000 10,871,578 425,005,578 7,638,000 28,837,000 19,615,000 18,561,926 (4) Suspended Solids 65,317,000 454,000 31,992,000 (5) (6) Storm BOD Water $ $ 104,432,000 9,691,000 65,317,000 454,000 31,992,000 28,001,370 39,116,349 197,125,000 95,046,000 70,341,422 362,512,422 558,200,000 106,781,355 74,651,926 125,764,370 251,002,349 1,345,718,000 106,781,355 499,657,504 125,764,370 251,002,349 362,512,422 34,078,000 2,704,055 12,652,969 3,184,767 6,356,204 9,180,005 1,379,796,000 109,485,410 512,310,473 128,949,137 257,358,553 371,692,427 1,000,000 8,123,700 30,900,000 16,000,000 12,000,000 79,300 371,300 93,500 186,500 269,400 644,600 3,016,300 759,200 1,515,200 2,188,400 30,900,000 1,737,700 8,131,100 2,046,600 4,084,600 12,000,000 68,023,700 2,461,600 42,418,700 2,899,300 5,786,300 14,457,800 0 0 0 0 0 34 Total Other Capital Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 RC- 7 Table 6 Total Cost of Service Fiscal Year 1994 t t t Line No. Revenue Requirements 1 O&M Expense 2 Emergency Fund Accrual 3 Capital Outlay 4 Major Sewer Replacements 5 Wastewater System Replacements 6 Storm Sewer Replacements 7 Consent Decree Projects 8 Low Income Program 9 Total Revenue Requirements Met from 10 Administrative Tax Revenue 11 OMCI Fund Transfers 12 Engineering Service Fees 13 Reimbursement of Maint. Expense 14 Miscellaneous Income 15 Interest Income 16 Ind. permits & Sampling Charges 17 Waste Hauler Fees 18 Total 19 Net Cost of Service to be Met from User Charges Operating Expense Replacements Capital Total $ $ $ $ 92,339,000 92,339,000 1,000,000 1,000,000 8,123,700 8,123,700 30,900,000 30,900,000 16,000,000 16,000,000 12,000,000 12,000,000 560,000 92,899,000 68,023,700 Other Sources 3,193,000 600,000 1,100,500 20,000 (1,050,400) 575,000 270,000 385,000 5,093,100 0 87,805,900 68,023,700 Total Cost of Service San. Repl. (34.4%) San. — Sanitary SW — Stormwater 0 0 0 560,000 0 160,922,700 SW Repl. (9.3%) CIS (0.0%) SW 0&M (127%) 3,193,000 600,000 1,100,500 20,000 (1,050,400) 575,000 270,000 385,000 0 5,093,100 0 155,829,600 O&M — Operation & Maintenance Expense Repl. — Replacements CIS — Capital Improvement Surcharge RC -8 e t t 1 1 UNITS OF SERVICE INPUTS Infiltration/Inflow as a percent of Influent Flow 38.00% Percent of Total I/I Allocated to Stormwater 0.00% Percent of I/I to be Recovered by Wastewater Charges... 38.00% Allocation of Infiltration/Inflow: 37.0% 63.0% Customer Related.... Volume Related Capacity Factors Contributed I/I Residential Single Family Multifamily - 1 Unit Duplexes Triplexes Fourplex Multifamily Large Multifamily Subtotal Multifamily Total Residential Non- residential Total 1.0 2.5 Average Contributed Wastewater Strengths Suspended Solids.... 200 ppm BOD 220 ppm Average Infiltration/Inflow Wastewater Strengths Suspended Solids.... 45 ppm BOD 5 ppm STORMWATER IMPERVIOUS AREA Wastewater Actual FY 1993 Accounts Projected TY 1994 Accounts Stormwater Actual Projected Growth 1991 Aug. 1992 TY 1994 Area Per Comercial Accounts Accounts Account Area Csf Csf 343,302 345,744 343,302 345,744 15.56 8,713 8,765 8,713 8,765 15.56 25,627 25,780 25,627 25,780 15.77 1,170 1,177 1,170 1,177 15.21 6,664 6,704 6,664 6,704 20.61 5,928 5,964 5,928 5,964 225.00 48,102 48,390 48,102 48,390 42.18 Test Year Impervious Area Csf 391,404 394,134 391,404 394,134 18.83 7,420,682 27,214 27,592 27,214 27,592 225.00 8,483,882 8,490,324 5,379,777 136,383 406,551 17,902 138,169 1,341,900 2,040,905 418,618 421,726 418,618 421,726 BILLABLE SURCHARGE LOADINGS Non-residential Customers System Total Anheuser-Busch Adjustments Adjusted Total Vz of COD added to Billable BOD Adjustments for Anheuser-Busch 1994 1995 1996 1997 1998 1999 Test Year (1994) Billable Suspended Solids pounds 25,600,000 0 25,600,000 Solids 0 0 0 0 0 Billable BOD COD * BOD pounds pounds pounds 62,400,000 8,400,000 66,600,000 0 0 0 BOD VOLUME 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 66,600,000 8,483,882 15,911,006 RC -9 1 Customer Accounts Summary Fiscal Year 1994 Noe Single Multifamily Large Non- Multifamily Family (1-4 Units) Multifamily residential Total Units Metered Accounts 1 St. Louis City 0 380 10,635 11,015 0 2 St. Louis County 248,318 13,170 3,115 15,363 279,966 63,760 3 Florissant 13,991 81 96 506 14,674 310 4 Kirkwood 8,860 255 110 552 9,777 1,529 5 Valley Park 849 224 0 127 1,200 350 6 Webster Groves 7,871 141 11 409 8,432 663 7 Wells 6 6 8 Total Metered 279,895 13,871 3,712 27,592 325,070 66,612 9 Flat Rate Accounts 65,849 30,807 96,656 90,316 ',:7" , 10 Total 345,744 44,678 3,712 27,592 421,726 156,928 t 1 Estimated Contributed Wastewater Volume for Unmetered Customers Fiscal Year 1994 Line Water No. Rooms Closets Bath Showers Total Number of Billable Units 1 Single Family 377,702 92,003 72,810 12,742 2 Multifamily 321,529 81,697 75,453 3,237 3 Total 699,231 173,700 148,263 15,979 4 Unit Wastewater Flow (gpd) 16 60 50 50 Annual Flow (Ccf) 5 Single Family 2,948,900 2,693,700 1,776,400 310,900 7,729,900 i' 7-7 ci-1a -'=J. 6 Multifamily 2,510,300 2,391,900 1,840,900 79,000 6,822,100 7 _'_ , s -:-.1/--`-7 7 Total 5,459,200 5,085,600 3,617,300 389,900 14,552,000 RC -10 1 I I I I I I I I I I I Line No. Metered Water Usage Fiscal Year 1994 Water Provider 1 St. Louis City 2 St. Louis County 3 Florissant 4 Kirkwood 5 Valley Park 6 Webster Groves 7 Wells 8 Total Winter Quarter 9 Annualized Total Line No. Single Family Ccf/qtr 0 6,704,586 377,757 239,220 22,923 212,517 162 Multifamily (1-4 Units) Ccf/qtr Large Multifamily Ccf/yr 0 1,584,200 1,275,200 2,342,000 6,200 38,500 30,580 59,300 7,000 13,260 8,700 0 Non— Annualized residential Total Ccf/yr Ccf/yr 19,930,900 17,587,200 233,500 401,700 175,800 290,100 0 21,515,100 51,848,344 1,807,828 1,540,200 295,492 1,201,908 648 7,557,165 1,332,240 30,228,660 5,328,960 4,032,700 38,619,200 78,209,520 Table 5 Allocation of Infiltration/Inflow Fiscal Year 1994 Customer Class Wastewater Service Single Family 1 Metered 2 Unmetered Multifamily 3 Metered 4 Unmetered 5 Total Residential 6 Non—residential 7 Total Ccf — hundred cubic feet No. of Accounts Estimated Contributed Infiltration/Inflow Volume Customer Volume Total Ccf Ccf Ccf Ccf 279,895 30,228,700 13,961,300 11,672,200 25,633,500 65,849 7,729,900 3,284,600 2,984,700 6,269,300 17,583 9,361,700 877,000 3,614,800 4,491,800 30,807 6,822,100 1,536,700 2,634,200 4,170,900 394,134 54,142,400 19,659,600 20,905,900 40,565,500 27,592 38,619,200 1,376,300 14,912,100 16,288,400 421,726 92,761,600 21,035,900 35,818,000 56,853,900 RC -11 Table 4 1 t 0 Units of Service Fiscal Year 1994 (1) (2) (3) (4) (5) (6) (7) Wastewater Strength Customer Related Line Suspended All Industrial No. Volume Capacity Solids BOD Stormwater Customers Customers Ccf Ccf/day pounds pounds Csf Services Accounts Single Family Metered 1 Contributed 30,228,700 82,818 37,725,418 41,497,959 2 Infiltration/Inflow 25,633,500 175,572 7,197,887 799,765 3 Total 55,862,200 258,390 44,923,305 42,297,724 4,355,166 279,895 Unmetered 4 Contributed 7,729,900 21,178 9,646,915 10,611,607 5 Infiltration/Inflow 6,269,300 42,940 1,760,419 195,602 6 Total 13,999,200 64,118 11,407,334 10,807,209 1,024,611 65,849 Multifamily Metered 7 Contributed 9,361,700 25,648 11,683,402 12,851,742 8 Infiltration/Inflow 4,491,800 30,766 1,261,297 140,144 9 Total 13,853,500 56,414 12,944,699 12,991,886 1,533,333 17,583 Unmetered 10 Contributed 6,822,100 18,691 8,513,981 9,365,379 11 Infiltration/Inflow 4,170,900 28,568 1,171,189 130,132 12 Total 10,993,000 47,259 9,685,170 9,495,511 507,572 30,807 Non-residential 13 Contributed 38,619,200 105,806 48,196,762 53,016,438 14 Infiltration/Inflow 16,288,400 111,564 4,573,783 508,198 15 Surcharge 25,600,000 66,600,000 16 Total Stormwater 17 Infiltration/Inflow 54,907,600 217,370 78,370,545 120,124,636 8,490,324 27,592 27,592 0 0 0 0 421,726 Total 18 Contributed 92,761,600 254,141 141,366,478 193,943,125 19 Infiltration/Inflow 56,853,900 389,410 15,964,575 1,773,841 20 Total Ccf - hundred cubic feet Csf - hundred square feet 149,615,500 643,551 157,331,053 195,716,966 15,911,006 843,452 27,592 RC -12 1 Table 7 Allocation of Cost of Service to Customer Classes Fiscal Year 1994 Line No. Cost of Service - $ 1 Net O&M Expense 2 Net Replacements 3 Low Income Admin. 4 Total OM&R 5 Net Capital Costs 6 Low Income Admin. 7 Total Capital 8 Total 9 Units of Service 10 Unit Costs - S/Unit Single Family Metered 11 Units of Service 12 Cost - $ Unmetered 13 Units of Service 14 Cost -$ Multifamily Metered 15 Units of Service 16 Cost - $ Unmetered 17 Units of Service 18 Cost -$ Non-residential 19 Units of Service 20 Cost - $ Stormwater 21 Units of Service 22 Cost - 23 Total Cost - $ Ccf - hundred cubic feet Csf - hundred square feet (1) (2) (3) (4) Wastewater Strength Suspended Volume Capacity Solids BOD 8,963,600 30,168,500 2,461,600 42,418,700 44,400 281,600 (5) (6) (7) (8) Customer Related All Industrial Stormwater Customers Customers 6,831,200 17,411,700 17,916,300 3,575,400 2,899,300 5,786,300 14,457,800 37,800 90,100 83,000 13,900 11,469,600 72,868,800 9,768,300 23,288,100 32,457,100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Expense 2,379,200 87,245,900 68,023,700 9,200 560,000 3,589,300 2,388,400 155,829,600 0 0 0 0 0 11,469,600 72,868,800 9,768,300 23,288,100 32,457,100 3,589,300 2,388,400 155,829,600 149,615,500 643,551 157,331,053 195,716,966 15,911,006 Ccf Ccf/day Pounds Pounds Csf 0.07666 113.22925 0.06209 0.11899 843,452 27,592 Services Accounts 2.03992 4.25549 86.56132 55,862,200 258,390 44,923,305 42,297,724 4,355,166 279,895 4,282,500 29,257,400 2,768,500 5,032,900 1,191,100 13,999,200 64,118 11,407,334 10,807,209 1,024,611 1,073,200 7,260,000 708,300 1,285,900 13,853,500 56,414 12,944,699 12,991,886 1,533,333 1,062,000 6,387,700 824,400 1,545,900 10,993,000 47,259 9,685,170 9,495,511 507,572 842,700 5,351,100 601,300 1,129,900 54,907,600 217,370 78,370,545 120,124,636 8,490,324 4,209,200 24,612,600 4,865,800 14,293,500 0 0 0 0 0 0 65,849 280,200 17,583 74,800 30,807 131,100 42,532,400 10,607,600 9,894,800 8,056,100 27,592 27,592 117,400 2,388,400 50,486,900 0 421,726 0 32,457,100 1,794,700 34,251,800 11,469,600 72,868,800 9,768,300 23,288,100 32,457,100 3,589,300 2,388,400 155,829,600 RC -13 Estimated Low Income Assistance Credit — 50% Assistance Customer Class Units Wastewater Stormwater Capital Wastewater Stormwater Capital $/Unit $/Unit $/Unit $ $ $ Updated Rate Structure Wastewater / CIS Single Family Metered 4,154 6.15 0.00 306,565 0 Unmetered 5,267 6.15 0.00 388,705 0 Multifamily Metered 4,154 4.61 0.00 229,924 0 Unmetered 22,382 4.61 0.00 1,238,844 0 Large Multifamily Service Related 25,372 0.00 0.00 0 0 Volume Related 2,055,132 0.50 0.00 1,017,290 0 Stormwater Service Related 35,957 0.18 77,667 Single Family 146,591 0.087 152,161 Multifamily 159,216 0.087 165,266 Large Multifamily 152,232 0.087 158,017 Total 3,181,328 553,111 0 Total Rate Subsidy (Rounded) 3,734,000 3,181,000 553,000 0 Administration Costs 15.0% 560,000 477,000 83,000 0 r t USE $4,294,000 3,658,000 636,000 0 Note: The Capital Improvement Surcharge low income credit, estimated to be about $760,000 per year, will be recovered from available fund balances. RC -14 1 Table 9 Allocation of Cost of Service and Low Income Subsidy to Customer Classes Fiscal Year 1994 (1) (2) (3) (4) (5) (6) (7) (8) Wastewater Strength Customer Related Line Suspended All Industrial Total No. Volume Capacity Solids BOD Stormwater Customers Customers Expense $ Cost of Service & Low Income Subsidy — $ 1 Net O&M Expense 8,963,600 30,168,500 6,831,200 17,411,700 17,916,300 3,575,400 2,379,200 87,245,900 2 Net Replacements 2,461,600 42,418,700 2,899,300 5,786,300 14,457,800 68,023,700 3 Low Income Program 340,100 2,160,600 289,600 690,500 636,000 106,400 70,800 4,294,000 4 Total OM&R 11,765,300 74,747,800 10,020,100 23,888,500 33,010,100 3,681,800 2,450,000 159,563,600 5 Net Capital Costs 0 0 0 0 0 0 6 Low Income Program 0 0 0 0 0 7 Total Capital 0 0 0 0 0 0 8 Total 11,765,300 74,747,800 10,020,100 23,888,500 33,010,100 3,681,800 2,450,000 159,563,600 9 Units of Service 149,615,500 643,551 157,331,053 195,716,966 15,911,006 843,452 27,592 Ccf Ccf/day Pounds Pounds Csf Services Accounts 10 Unit Costs — $/Unit 0.07864 116.14899 0.06369 0.12206 2.07467 4.36516 88.79385 Single Family Metered 11 Units of Service 55,862,200 258,390 44,923,305 42,297,724 4,355,166 279,895 12 Cost — S 4,392,700 30,011,800 2,861,000 5,162,200 1,221,800 43,649,500 Unmetered 13 Units of Service 13,999,200 64,118 11,407,334 10,807,209 1,024,611 65,849 14 Cost — $ 1,100,900 7,447,200 726,500 1,319,100 287,400 10,881,100 Multifamily Metered 15 Units of Service 13,853,500 56,414 12,944,699 12,991,886 1,533,333 17,583 16 Cost — $ 1,089,400 6,552,400 824,400 1,585,800 76,800 10,128,800 Unmetered 17 Units of Service 10,993,000 47,259 9,685,170 9,495,511 507,572 30,807 18 Cost — $ 864,500 5,489,100 616,800 1,159,000 134,500 8,263,900 Non—residential 19 Units of Service 54,907,600 217,370 78,370,54.5 120,124,636 8,490,324 27,592 27,592 20 Cost — $ 4,317,800 25,247,300 4,991,400 14,662,400 120,400 2,450,000 51,789,300 Stormwater 21 Units of Service 0 0 0 0 421,726 22 Cost — $ 0 0 0 0 33,010,100 1,840,900 34,851,000 23 Total Cost — $ 11,765,300 74,747,800 10,020,100 23,888,500 33,010,100 3,681,800 2,450,000 159,563,600 Ccf — hundred cubic feet Csf — hundred square feet RC -15 e Allocation of Cost of Service and Low Income Subsidy to Customer Classes Summarized by OM&R and Capital Costs Fiscal Year 1994 r Multifamily — Metered 7 OM&R 1,089,400 6,552,400 824,400 1,585,800 76,800 10,128,800 8 Capital 0 0 0 0 0 (1) (2) (3) (4) (5) (6) (7) (8) Wastewater Strength Customer Related Total Line Suspended All Industrial Allocated No• Volume Capacity Solids BOD Stormwater Customers Customers Cost $ Unit Costs — S/Unit 1 OM&R Unit Costs 0.07864 116.14899 0.06369 0.12206 2.07467 4.36516 88.79385 2 Capital Unit Costs 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Allocated Costs — $ Single Family — Metered 3 OM&R 4,392,600 30,011,800 2,861,000 5,162,200 1,221,800 43,649,400 4 Capital 0 0 0 0 0 Single Family — Unmetered 5 OM&R 1,100,900 7,447,200 726,500 1,319,100 287,400 10,881,100 6 Capital 0 0 0 0 0 Non—residential 11 OM&R 4,317,900 25,247,300 4,991,400 14,662,400 120,400 2,450,000 51,789,400 12 Capital 0 0 0 0 0 0 Stormwater 13 OM&R 0 0 0 0 33,010,100 1,840,900 34,851,000 14 Capital 0 0 0 0 0 Multifamily — Unmetered 9 OM&R 864,500 5,489,100 616,800 1,159,000 134,500 8,263,900 10 Capital 0 0 0 0 0 Total 15 OM&R 11,765,300 74,747,800 10,020,100 23,888,500 33,010,100 3,681,800 2,450,000 159,563,600 16 Capital 0 0 0 0 0 0 0 17 Total Cost 11,765,300 74,747,800 10,020,100 23,888,500 33,010,100 3,681,800 2,450,000 159,563,600 RC -16 Table 8 Comparison of Revenue Under Previous User Charges With Cost of Service Fiscal Year 1994 r t t Wastewater Service Single Family Multifamily Total Residential Non— residential Total Wastewater Service Stormwater Service Total Stormwater Service Total Combined Service Revenue Under Previous User Charges(a) Allocated Cost of Service 33,938,200 53,140,000 14266,800 17, 950,900 48,205,000 71,090,900 32,982,900 50,486,900 81,187,900 121,577,800 1,424,900 34,251,800 82, 612, 800 155, 829,600 (a) Excludes revenue from the capital improvement surcharge. RC -17 Table 10 Previous OM&R Charges and Existing Capital Improvement Surcharges 1 r Wastewater User Charges Residential Single Family — $/Month 8.18 2.50 10.68 Multifamily (per unit) — $/Month 6.15 1.88 8.03 Non— residential Base Charge — $/Month (b) 7.78 0.75 8.53 Volume Charge — $/Ccf 0.58 0.19 0.77 Excess Strength Surcharge — $/Ton Suspended Solids over 350 ppm 117.00 44.30 161.30 BOD over 300 ppm 195.50 65.70 261.20 COD over 600 ppm 97.75 32.85 130.60 Stormwater User Charges Single Family — $/Month 0.24 0.24 Multifamily (per unit) — $/Month 0.18 0.18 Non—residential — $/Month 0.24 0.24 OM&R — Operation, maintenance, and replacement Ccf — hundred cubic feet ppm — parts per million OM&R Capital Portion Portion (a) Total $ $ $ (a) Existing capital improvement surcharges. (b) Includes non—residential compliance charges. RC -18 1 1 Table 11 Determination of Metered Wastewater User Charges Fiscal Year 1994 OM&R Capital Portion Portion (a) Total Service Related All Customers — $ 1,419,000 0 1,419,000 Customer Related I/1 Volume — $ 1,275,116 0 1,275,116 Capacity — $ 12,899,380 0 12,899,380 Suspended Solids — $ 289,984 0 289,984 BOD — $ 61,750 0 61,750 Total CTA Customer Costs — $ 15,945,230 0 15,945,230 Total Metered Accounts 325,070 325,070 325,070 Bill, Coll & Sys Avail Charge — $/Mo. 4.09 0000 4=09 Compliance Costs — $ 2,450,000 0 2,450,000 Non— residential Accounts 27,592 27,592 27,592 Compliance Charge — $/Month(b) 740 0000 7.40 Volume Related Volume — $ 8,524,784 0 8,524,784 Capacity — $ 48,912,120 0 48,912,120 Suspended Solids — $ (c) 6,756,352 0 6,756,352 BOD — $ (') 13,219,454 0 13,219,454 Total Volume Costs — $ 77,412,710 0 77,412,710 Contributed Volume — Ccf 78,209,600 78,209,600 78,209,600 Volume Charge — $/Ccf 0.99 0000 0.99 Excess Strength Surcharges Suspended Solids — $/Ton 127.38 0.00 127.38 BOD — $/Ton 244.12 0.00 244.12 COD — $/Ton 122.06 0.00 122.06 UNMETERED Service Related All Customers — $ 421,900 0 421,900 Customer Related 1/I Volume — $ 379,147 0 379,147 Capacity — $ 3,835,542 0 3,835,542 Suspended Solids — $ 86,225 0 86,225 BOD — $ 18,361 0 18,361 Total Customer Related Costs — $ 4,741,175 0 4,741,175 Total Unmetered Accounts 96,656 96,656 96,656 Res Bill, Coll & Sys Avail Chg — $/Mo 4.09 0.00 4409 Other Costs Volume — $ 1,586,253 0 1,586,253 Capacity — $ 9,100,758 0 9,100,758 Suspended Solids — $ 1,257,075 0 1,257,075 BOD — $ 2,459,739 0 2,459,739 Total Other Costs — $ 14,403,825 0 14,403,825 Total Unmetered Costs — $ 19,145,000 0 19,145,000 (a) Excludes the existing capital improvement surcharge. (b) Applicable to Non—residential customers. (c) Normal domestic strength wastewater. RC -19 I I I I I I I I 1 I I Table 12 Determination of Unmetered Wastewater User Charges Fiscal Year 1994 Line Bill, Coll & Housing Attributes No. Sys Ava Chg Rooms Water Closets Bath Showers Total $/unit/yr 1 Annual Flow (Ccf) 5,459,200 5,085,600 3,617,300 389,900 14,552,000 Unit Charge — $/Ccf 2 OM&R 0.9898 0.9898 0.9898 0.9898 3 Capital 0.0000 0.0000 0.0000 0.0000 Allocated Cost — $ 4 OM&R 5,403,580 5,033,780 3,580,440 386,025 14,403,825 5 Capital 0 0 0 0 0 6 Total 5,403,580 5,033,780 3,580,440 386,025 14,403,825 Number of Units 7 Single Family 377,702 92,003 72,810 12,742 8 Multifamily 321,529 81,697 75,453 3,237 9 Total 699,231 173,700 148,263 15,979 Wastewater Charge — $/Unit/Mo. 10 OM&R 4.09 0.64 2.41 2.01 2.01 11 Capital (a) 0.00 0.00 0.00 0.00 0.00 12 Total 4.09 0.64 2.41 2.01 2.01 Ccf — hundred cubic feet OM&R — Operation, maintenance, and replacements (a) Excludes the existing capital improvement surcharge. RC -20 Alternative Rates t t OM&R Portion No Low Income Assistance A - UPDATED RATE STRUCTURE (a) Wastewater Service Residential Single Family - $/mo. 11.94 Multifamily (per unit) - $/mo. 8.96 Non- residential Base Charge - $/mo. 10.30 Volume Charge - $/Ccf 0.96 Excess Strength Surcharge - $/ton Suspended Solids > 350 ppm 123.70 BOD > 300 ppm 237.10 COD > 600 ppm 118.55 Stormwater Service All Customer Classes Bill, Coll & Sys Av Chg - $/mo. Impervious Charge - $/mo./Csf Low Income Program Low Income Regular 50% 6.15 4.61 Capital Portion No Low Low Income Program Total Income Low Low Assistance Income Regular Income Regular 12.30 0.00 9.23 0.00 11.49 0.00 0.99 0.00 127.40 0.00 244.10 0.00 122.05 0.00 50% 50% 0.00 0.00 6.15 12.30 0.00 0.00 4.61 9.23 0.00 0.00 0.00 0.00 0.00 11.49 0.99 127.40 244.10 122.05 0.35 0.18 0.36 0.00 0.00 0.00 0.18 0.36 0.170 0.087 0.173 0.000 0.000 0.000 0.087 0.173 B - ALTERNATIVE RATE STRUCTURE Wastewater Service Unmetered Residential - $/mo. Bill, Collect & Sys Avail Charge 3.97 Per Room 0.63 Per Water Closet 2.35 Per Bath 1.95 Per Separate Shower 1.95 Metered Residential Bill, Coll & Sys Av Chg - $/mo. Volume Charge - $/Ccf Non- residential Bill, Coll & Sys Av Chg - $/mo. 11.16 Volume Charge - $/Ccf 0.96 Excess Strength Surcharge - $/ton Suspended Solids > 350 ppm 123.70 BOD > 300 ppm 237.10 COD > 600 ppm 118.55 2.05 4.09 0.00 0.32 0.64 0.00 1.21 2.41 0.00 1.01 2.01 0.00 1.01 2.01 0.00 3.97 2.05 4.09 0.00 0.96 0.50 0.99 0.00 11.49 0.00 0.99 0.00 127.40 0.00 244.10 0.00 122.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.05 4.09 0.32 0.64 1.21 2.41 1.01 2.01 1.01 2.01 2.05 4.09 0.50 0.99 11.49 0.99 127.40 244.10 122.05 Stormwater Service All Customer Classes Bill, Coll & Sys Av Chg - $/mo. 0.35 0.18 0.36 0.00 0.00 0.00 0.18 0.36 Impervious Charge - $/mo./Csf 0.170 0.087 0.173 0.000 0.000 0.000 0.087 0.173 mo. - month Csf - hundred square feet ppm - parts per million (a) The updated rate structure is a modification of the previous rate structure (Table 10). Stormwater charges are based on impervious area and multifamily customers are separated from the non-residential class. Note: Rates shown in this table are for illustration purposes only and are not rounded. Application of these rates to representative billing units may not exactly calculate the example bills shown in a latter table. RC -21 Table 10A Updated Rates and Charges Based Upon Current Rate Structure OM&R Capital Portion Portion (a) $ $ Total $ Wastewater Service Residential Single Family — $/Month 12.30 0.00 12.30 Multifamily (per unit) — $/Month 9.23 0.00 9.23 Non— residential (b) Base Charge — $/Month 10.61 0.00 10.61 Volume Charge — $/Ccf 0.99 0.00 0.99 Excess Strength Surcharge — $,Ton Suspended Solids over 350 ppm BOD over 300 ppm COD over 600 ppm 127.40 0.00 127.40 244.10 0.00 244.10 122.05 0.00 122.05 Stormwater Service Single Family — $/Month 5.87 5.87 Multifamily (per unit) — $/Month 4.40 4.40 Non—residential — $/Month 5.87 5.87 Ccf — hundred cubic feet ppm — parts per million (a) Excludes the existing capital improvement surcharge (b) Includes some large multifamily customers. Note: Based on: 1) Previous rate structure 2) Fiscal year 1994 total costs 3) Updated cost of service allocations Table 13 Rates for Fiscal Year 1994 t Wastewater User Charges Unmetered - $/Month Billing & Collection Charge 0.37 0.00 0.37 System Availability Charge 3.72 0.00 3.72 Per Room 0.64 0.00 0.64 Per Water Closet 2.41 0.00 2.41 Per Bath 2.01 0.00 2.01 Per Separate Shower 2.01 0.00 2.01 OM&R Capital Portion Portion Total(a) Metered Monthly Charges - $ Billing & Collection Charge 0.37 0.00 0.37 System Availability Charge 3.72 0.00 3.72 Compliance Charge (b) 7.40 0.00 7.40 Volume Charge - $/Ccf 0.99 0.00 0.99 Excess Strength Surcharge - $/Ton Suspended Solids over 350 ppm 127.40 0.00 127.40 BOD over 300 ppm 244.10 0.00 244.10 COD over 600 ppm 122.05 0.00 122.05 Stormwater User Charges Billing & Collection Charge - $/Mo. 0.36 0.00 0.36 Impervious Charge - $/Month/Csf 0.173 0.000 0.173 OM&R - Operation, maintenance, and replacement Ccf - hundred cubic feet Csf - hundred square feet ppm - parts per million (a) Rates for all users except qualified low income residential users. Charges for low income residential users are 50 percent of the charges for all other residential users. (b) Non-residential accounts only. Uniform Residential Flat Rate Charges (Previous Rate Structure) Calculated Less: Incr. Meter Cost 362,000 Capital Single Family - $/Month 1230 0.00 12.30 0.00 Multifamily - $/Month 9.23 0.00 9.23 Non-res Base Charge - $/Month 10.61 0.00 10.61 Non-res Volume Charge - $/Ccf 0.99 0.00 0.99 Flat Rate Stormwater Charge (Previous Rate Structure) Total Full Year Cost of Service 34,851,000 0 34,851,000 Equivalent Accounts 494,744 494,744 494,744 Single Family - $/month 5.87 0.00 5.87 RC -23 PROJECTED METERED USER CHARGE REVENUE Fiscal Year 1994 w 1 Wastewater Service Single Family Multifamily Non— residential Total Projected Units 30,228,700 Ccf 9,361,700 Ccf 38,619,200 Ccf 78,209,600 Ccf Excess Strength Suspended Solids 12,800 tons BOD 33,300 tons Total Wastewater Service Stormwater Service Residential Non—residential 5,888,499 8,490,324 Total Stormwater Service 14,378,823 Projected Number of Services 279,895 17,583 27,592 325,070 297,478 27,592 325,070 Proposed Rates Monthly Variable Charges Charge $/Year $/unit 49.08 49.08 137.88 127.40 244.10 0.99 0.99 0.99 Projected Revenue(a) 43,663,700 10,131,100 42,037,400 1,630,700 8,128,500 105,591,400 4.32 2.076 13,509,600 4.32 2.076 17,745,100 31,254,700 a) Does not include low income assistance credits or revenues from the capital improvement surcharge. RC -24 I I I I I I I I I I I I I I I PROJECTED UNMETERED USER CHARGE REVENUE Fiscal Year 1994 Wastewater Service Single Family Bill, Coll & S. A. Charge 65,849 49.08 3,231,900 Rooms 377,702 7.68 2,900,800 Water Closets 92,003 28.92 2,660,700 Baths 72,810 24.12 1,756,200 Separate Showers 12,742 24.12 307,300 Total Projected Number of Projected Adopted Projected Services Units Rates Revenue(a) $/Unit/yr $ 10,856,900 Multifamily Bill, Coll & S. A. Charge 30,807 49.08 1,512,000 Rooms 321,529 7.68 2,469,300 Water Closets 81,697 28.92 2,362,700 Baths 75,453 24.12 1,819,900 Separate Showers 3,237 24.12 78,100 Total 8,242,000 Total Wastewater Service 19,098,900 Stormwater Service Billing & Coll. Charge 96,656 4.32 417,600 Impervious Area — Csf 1,532,183 2.076 3,180,800 Total Stormwater Service 3,598,400 Total Combined Service 22,697,300 a) Does not include low income assistance credits or revenues from the capital improvement surcharge. RC -25 I I I I I I I I I I o I I I Table 14 Comparison of Revenue Under Adopted Rates With Cost of Service Fiscal Year 1994 Net Allocated Projected Cost of Revenue(a) Service $ $ Wastewater Service (b) Single Family 54,032,300 53,140,000 Multifamily 15,682,200 17,950,900 Total Residential 69,714,500 71,090,900 Non—residential Total Wastewater Service Stormwater Service (b) Total Stormwater Service Total Combined Service 51,796,600 50,486,900 121,511,100 121,577,800 34,301,100 34,251,800 155,812,200 155,829,600 a) Includes subsidies for low income residential users. b) Excludes revenue and allocated cost of service attributable to the existing capital improvement surchargees. RC -26 I 1 I I I I I I I I N I I I I I Single Family Residential Typical Bill Comparison Fiscal Year 1994 Typical Bills (a) Based on: Housing Attributes Equivalent Uniform Variable Metered R WC B S Usage Flat Rate(") Flat Rates Rate (c) Ccf/mo. $/mo. $/mo. $/mo. 3 1 1 0 6.4 12.30 10.43 10.43 4 1 1 0 7.1 12.30 11.07 11.12 5 1 1 0 7.7 12.30 11.71 11.71 5 1 1 1 9.8 12.30 13.72 13.79 5 2 1 0 10.2 12.30 14.12 14.19 6 1 1 0 8.4 12.30 12.35 12.41 6 1 1 1 10.4 12.30 14.36 14.39 6 2 1 0 10.8 12.30 14.76 14.78 6 2 2 0 12.8 12.30 16.77 16.76 7 1 1 0 9.0 12.30 12.99 13.00 7 2 1 0 11.5 12.30 15.40 15.48 7 2 2 0 13.5 12.30 17.41 17.46 8 2 1 0 12.1 12.30 16.04 16.07 8 2 2 0 14.2 12.30 18.05 18.15 9 2 2 0 14.8 12.30 18.69 18.74 10 2 2 0 15.5 12.30 19.33 19.44 R - Number of Rooms at 16 gpd or 0.65 Ccf/mo. WC - Number of Water Closets at 60 gpd or 2.44 Ccf/mo. B - Number of Baths at 50 gpd or 2.03 Ccf/mo. S - Number of Separate Showers at 50 gpd or 2.03 Ccf/mo. Ccf - hundred cubic feet gpd - gallons per day mo - month Number In Random Sample 13 30 98 14 11 39 6 22 22 6 16 7 4 23 11 12 (a) Excludes stormwater user charges and capital improvement surcharges. (b) Assumes that current rate structure is updated and used to compute monthly charges. (c) Assumes water usage during the Best Equated Period equal to the "Equivalent Usage" for the indicated housing attributes, which may not be the case. RC -27 1 Table 16 Alternative Rate Structure Impact on Typical Customers Updated Current Previous Method Adopted FY 1993 (a) FY 1994 (b) b FY 1994 (> t 1 $/mo. $/mo. Metered Single Family Customer (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 1230 13.00 Wastewater Capital Improvement Surcha 2.50 2.50 250 Stormwater User Charge 0.24 5.87 3.15 Total 10.92 20.67 18.65 Unmetered Single Family Customer (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. A Wastewater User Charge 8.18 1230 11.71 Wastewater Capital Improvement Surcha 2.50 250 2.50 Stormwater User Charge 0.24 5.87 251 Total 10.92 20.67 Metered Multifamily Customer (4 Units, 28Ccf/Mo. and 2,073 sf Imp. Area) Wastewater User Charge 24.60 36.92 Wastewater Capital Improvement Surcha 7.52 7.52 Stormwater User Charge 0.72 17.60 Total $/mo. 16.72 31.81 7.52 3.95 32.84 62.04 43.28 Unmetered Multifamily Customer (16 Rooms, 4 Water Closets, 4 Baths and 2,055 sf Imp. Wastewater User Charge 24.60 36.92 32.01 Wastewater Capital Improvement Surcha 7.52 7.52 752 Stormwater User Charge 0.72 17.60 3.92 Total 32.84 62.04 43.45 Non-residential Customer (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge 75.64 126.44 Wastewater Capital Improvement Surcha 22.98 22.98 Stormwater User Charge 0.24 5.87 127.32 22.98 532.70 Total 98.86 155.29 683.00 Large Surcharge Customer (271,315 Ccf, 962 Tons SS, 1,961 Tons BOD/Mo., and 789,351 sf Imp Wastewater User Charge 568,893.98 775,490.36 775,491.24 Wastewater Capital Improvement Surcha 193,160.00 193,160.00 193,160.00 Stormwater User Charge 0.24 5.87 1,365.94 Total 762,054.22 968,656.23 970,017.18 Large Stormwater Customer (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 19,256.21 19,257.09 Wastewater Capital Improvement Surcha 3,694.35 3,694.35 3,69435 Stormwater User Charge 0.24 5.87 7,390 37 Total 14,977.57 22,956.43 30,341.81 Ccf - Hundred cubic feet sf - square feet (a) Based on revenue requirements of approximately $104 million. (b) Based on revenue requirements of approximately $181 million. Note: These are average or typical customers. Some customers will pay more and some will pay less RC -28 Impact of Rate Alternatives on Example Customers i A - Updated Rate Structure (a) No Low Low Income Program Existing Income Low FY 1993 Assistance Income Regular $/mo. $/mo. $/mo. $/mo. Metered Single Family (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 11.94 6.15 1230 Capital Improvement Charge 2.50 2.50 1.25 2.50 Stormwater User Charge 0.24 3.09 1.57 3.15 Total 10.92 17.53 8.97 17.95 50% B - Current Rate Structure No Low Low Income Program Income Low Assistance Income Regular $/mo. $/mo. $/mo. 12.61 2.50 3.09 50% 6.50 1.25 1.57 13.00 2.50 3.15 18.20 932 18.65 Unmetered Single Family (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. Area) Wastewater User Charge 8.18 11.94 6.15 12.30 11.42 Capital Improvement Charge 2.50 2.50 1.25 2.50 2.50 Stormwater User Charge 0.24 2.46 1.25 2.51 2.46 Total 10.92 16.90 8.65 Metered Multifamily (4 Units, 28Ccf/Mo. and 2,073 sf Imp. Area) Wastewater User Charge 24.60 35.84 18.45 Capital Improvement Charge 7.52 7.52 3.76 Stormwater User Charge 0.72 3.87 1.97 Total 32.84 47.23 24.18 48.37 42.24 21.64 43.28 Unmetered Multifamily (16 Rooms, 4 Water Closets, 4 Baths and 2,055 sf Imp. Area) Wastewater User Charge 24.60 35.84 18.45 36.90 31.25 Capital Improvement Charge 7.52 7.52 3.76 7.52 7.52 Stormwater User Charge 0.72 3.84 1.96 3.92 3.84 Total 5.86 125 125 11.71 2.50 2.51 17.31 16.38 8.36 16.72 36.90 7.52 3.95 30.85 7.52 3.87 15.91 3.76 1.97 31.81 7.52 3.95 16.01 32.01 3.76 7.52 1.96 3.92 32.84 47.20 24.17 48.34 42.61 21.73 43.45 Metered Non-residential (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge 75.64 122.62 127.32 123.48 Capital Improvement Charge 22.98 22.98 12.98 22.98 22.98 Stormwater User Charge 22.98 g 0.24 523.46 532.70 523.46 532.70 Total 98.86 669.06 683.00 669.92 683.00 Large Surcharge (271,315 Ccf, 962 Tons Total SS, 1,961 Tons Total Wastewater User Charge 568,893.98 752,782.00 Capital Improvement Charge 193,160.00 193,160.00 Stormwater User Charge 0.24 1,342.25 Total 762,054.22 947,284.25 Large Stormwater (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 18,672.70 19,257.09 18,673.56 Capital Improvement Charge 3,694.35 3,694.35 3,694.35 3,694.35 Stormwater User Charge 0.24 7,26221 7,390.37 7,262.21 Total 14,977.57 29,629.26 30,341.81 29,630.12 BOD/Mo., and 789,351 sf Imp. Area) 775,491.24 752,782.86 775,49124 193,160.00 193,160.00 193,160.00 1,365.94 1,342.25 1,365.94 970,017.18 947,285.11 970,017.18 19,257.09 3,69435 7,39037 30,341.81 Ccf - Hundred cubic feet sf - square feet (a) The updated rate structure is a modification of the previous rate structure . Stormwater charges are based on impervious area and multifamily customers are separated from the non-residential class. Note: These are average or typical customers. Some customers will pay more and some will pay less. RC -29 REPORT ON ALTERNATIVE RATE STRUCTURES FOR THE METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 1994 rme Rif BLACK & VEATCH PROGRESS BY DESIGN 1993 REPORT ON ALTERNATIVE RATE STRUCTURES FOR THE METROPOLITAN ST. LOUIS SEWER DISTRICT FISCAL YEAR 1994 MW lqf BLACK & VEATCH PROGRESS BY DESIGN 1993 BACK &VEATCH 8400 Ward Parkway, P.O. Box No. 8405, Kansas CO, Missouri 64114, (913) 339-2000 February 26, 1993 Mr. Frank G. Kriz Executive Director Metropolitan St. Louis Sewer District 2000 Hampton Avenue St. Louis, MO 63139-2979 Dear Mr. Kriz: We are pleased to present our Report on Alternative Rate Structures for the Metropolitan St. Louis Sewer District. An executive summary precedes the detailed text of the report. The report considers substantial changes in the way residential customers are billed for wastewater and stormwater services, as well as the possible implementation of a low income assistance program. These changes will provide improved equity both in terms of charges commensurate with costs of service and in terms of meeting MSD's goals. However, some customer dissatisfaction may be experienced because of a lack of understanding or acceptance that equity has been enhanced. We wish to express our appreciation for the cooperation and assistance of MSD staff in providing information and guidance necessary for us to complete the study. We have enjoyed this opportunity to be of service to MSD and will be available to discuss the report with you at your convenience. Very truly yours, BLACK & VEATCH 62,./ Paul E. Hoback Partner 1 KB:lkm Enclosure Contents Page Executive Summary ES -1 Wastewater Rate Structure ES -1 Stormwater Rate Structure ES -2 Units of Service ES -2 Low Income Assistance Program ES -4 Cost of Service Allocations ES -5 User Charge Adjustments ES -5 Introduction 1 Purpose 3 Scope 3 Additional Studies 4 Fiscal Year 4 Wastewater Billing Methods 5 Alternative Rate Structures 5 Best Equated Period 7 City of St. Louis Water Utility's Residential Billing Practice 7 Flat Rate Sewer Service Billing Methods - Selected Communities 9 Residential Stormwater Classification 12 Alternative A - Residential Statistical Sample 12 Alternative B - Modified Actual Impervious Area 14 Alternative C - Actual Impervious Area 15 Alternative D - Impervious Area Billing Blocks 15 Alternative E - Exemption of Initial Block of Impervious Area 16 Residential Stormwater Classification Summary 16 Units of Service 17 User Classes 17 Billable Wastewater Volume 17 Infiltration/Infl6w 19 Peak Capacity Units 19 Wastewater Strength 19 Stormwater 21 Customer 21 Low Income Assistance Program 22 Federal Regulations 22 TC-1 Contents (Continued) Page Poverty Guidelines Poverty Status in St. Louis and St. Louis County Housing Characteristics Low Income Subsidy Cost of Service Allocations Cost of Service to be Allocated Functional Cost Components Allocation to Cost Components User Class Costs of Service User Charge Adjustments Existing Rates Proposed Rates Residential Non -Residential Stormwater Adequacy of Proposed Rates Typical Bills List of Tables 23 23 25 25 27 27 27 29 29 34 34 36 36 36 39 39 42 Table A Existing Rates ES -7 Table B Proposed Rates Fiscal Year 1994 ES -8 Table C Alternative Rate Structure Impact on Typical Customers ES -10 Table 1 Alternative Wastewater User Charge Methods 6 Table 2 Flat Rate Wastewater Charges for Selected Communities 10 Table 3 Alternative Stormwater User Charge Methods 13 Table 4 Units of Service Fiscal Year 1994 18 Table 5 Allocation of Infiltration/Inflow Fiscal Year 1994 20 TC-2 Contents (Continued) List of Tables (Continued) Table 6 Total Cost of Service Fiscal Year 1994 Table 7 Allocation of Cost of Service to Customer Classes Fiscal Year 1994 Table 8 Comparison of Revenue Under Existing User Charges with Cost of Service Fiscal Year 1994 Table 9 Allocation of Cost of Service and Low Income Subsidy to Customer Classes Fiscal Year 1994 Table 10 Existing Rates Table 11 Determination of Metered Wastewater User Charges Fiscal Year 1994 Table 12 Determination of Unmetered Wastewater User Charges Fiscal Year 1994 Table 13 Proposed Rates Fiscal Year 1994 Table 14 Comparison of Revenue Under Proposed Rates With Cost of Service Fiscal Year 1994 Table 15 Single Family Residential Typical Bill Comparison Fiscal Year 1994 Table 16 Alternative Rate Structure Impact on Typical Customers Appendices Appendix A Appendix B Appendix C Advantages and Disadvantages of Alternative Wastewater User Charge Structures Advantages and Disadvantages of Alternative Stormwater User Charge Structures Cost of Service Rate Model TC-3 Report on Alternative Rate Structures for the Metropolitan St. Louis Sewer District Fiscal Year 1994 Executive Summary The Metropolitan St. Louis Sewer District (MSD) was incorporated under a plan (Plan) approved at special election in 1954 and which specifies the MSD duties and power. The Plan grants to the MSD Board of Trustees (Board) the po er to establish rates, rentals, and other charges to be collected from all real property sercved by MSD. Such rates can reflect a broad range of methods but must be "fair and reasonable." This study examines potential changes to the existing wastewater and stormwater user charge systems to determine if more equitable rate forms could be economically implemented. The alternative rate forms studied include provisions for providing assistance to low income residential users. Proposed charges are designed to meet U.S. Environmental Protection Agency (EPA) and Missouri Department of Natural Resources (MDNR) user charge requirements and reflect fair and equitable sharing of costs among all user classes. Wastewater Rate Structure A variety of wastewater billing methods are practiced throughout the country, most of which equate contributed wastewater volume to water usage. In areas where some or all water customers are not metered, a standard or predominate billing method is not apparent. All methods require a degree of estimation and assumptions in their applications. Based upon our understanding of the MSD Board's goals, detailed discussions with MSD staff, and practicality considerations, an alternative wastewater rate form has been developed. The alternative rate form will (1) convert all metered accounts to a rate based on metered water consumption and (2) convert all unmetered residential accounts to a rate based on property attributes such as rooms and fixtures. The rate structure proposed for metered customers includes a base charge plus a volume charge, similar in form to the rates now charged to non-residential customers. It is proposed that contributed wastewater volume for single family users be based on their respective average daily metered water usage during a period best equated to contributed wastewater volume. For the central midwest region, this is a winter period when lawn irrigation and other outdoor water usage is at a minimum. The "Best Equated Period" for ES -1 MSD is indicated to be the period covered by bills that are based on meter readings from January 15 through April 15. Contributed wastewater volume for all other metered customers will continue to be based on annual water usage with exemption allowances for any water that does not enter the sewer system. The rate structure for unmetered residential customers is proposed to be based on estimated water usage for various housing attributes. In order to utilize the existing attribute inventory and billing database, attributes used by the City of St. Louis (City) are recom- mended for wastewater user charges. To provide an initial schedule of wastewater charges consistent with the City's existing unmetered water charges, it is recommended that the average water usage allowances be used as the basis for determining unmetered residential wastewater flow. Wastewater user charges (both the wastewater user charge and the capital improvement surcharge) for unmetered customers are proposed to be based on these flows and the same unit charges determined for metered residential users. Stormwater Rate Structure Several alternative stormwater classification methodologies were studied as the potential basis for equitable stormwater user charges. To provide greater equity, the existing flat rate structure should be replaced by a base charge plus impervious area charge. MSD has developed a database of impervious area for all properties based on the best available data. When measurement of actual impervious area is not cost-effective, the best available evidence of impervious area, such as information maintained in St. Louis City and County real estate records or obtained from aerial photography, is used. Units of Service The number of units of service required by each customer class provides a means to distribute costs proportionately among the various customer classes. The service requirements for which each class of customers is responsible include the volume of wastewater contributed, infiltration/inflow, peak capacity, wastewater strength, impervious area, and the number of bills rendered. The customer groups or user classes required for the proposed rate structure include: Residential Non -Residential • Unmetered Single Family • Normal Wastewater Strength • Metered Single Family • Excess Wastewater Strength • Unmetered Multifamily • Metered Multifamily Billable wastewater volume for metered single family users will be based on actual water usage during the period best equated to contributed wastewater volume. For all other ES -2 metered users, billable wastewater volume will be based on actual water usage with exemption allowances available for water not discharged to the sewer system. Billable wastewater volume for unmetered residential users will be based on the same indoor water usage attributes used by the City's unmetered water rates which are as follows: • 16 gallons per day (gpd) for each room of a dwelling. • 60 gpd for each water closet. • 50 gpd for each bath or separate shower. A review of the City's unmetered and unaccounted water usage indicates that the estimated water sales based on the above average water usages are reasonable. All water entering the sewer system by ground water infiltration or surface water inflow that reaches the wastewater treatment plants is considered to be infiltration/inflow. All surface water that bypasses the wastewater treatment plants or is discharged directly to a watercourse is considered to be stormwater. District -wide infiltration/inflow is estimated to be about 38 percent of the total wastewater flow reaching the treatment plants on an annual basis. Since each user must bear a proportionate share of the costs associated with infiltration/inflow, estimated infiltration/inflow volume is allocated to user classes assuming that 50 percent of the total is distributable on a customer basis and the remaining 50 percent is distributable on a contributed volume basis. The responsibility for collection system capacity cost varies with the estimated flow rates of both contributed wastewater and infiltration/inflow attributable to each user class. Infiltration/inflow is estimated to comprise about 61 percent of the total peak flows based on a peak to average ratio of 2.5 times that cf contributed flow. The wastewater strength responsibility of each user class, normally expressed in terms of biochemical oxygen demand (BOD) and suspended solids, is based on the estimated average strength concentrations and contributed volume for each user class. Average contributed strength concentrations for normal or domestic strength wastewater are determined to be 220 parts per million (ppm) for BOD and 200 ppm for suspended solids. Allowances for average wastewater strength associated with infiltration/inflow are estimated to be 5 ppm for BOD and 45 ppm for suspended solids. Estimates of BOD and suspended solids loadings in excess of normal strength limits are assigned to the surcharge customer classification and are identified separately. Responsibility for stormwater removal services is related to the amount of impervious area of each customer's property. Building dimensions maintained by the City and County assessor's offices for individual properties and other impervious areas will be used as the billing basis for the revised stormwater user charges. All billing and collection costs and a portion of the costs related to infiltration/inflow are allocated to user classes on the basis of the respective number of accounts or services. ES -3 Costs related to billing and collection are proposed to be recovered equally from wastewater and stormwater customers. Low Income Assistance Program Low income wastewater user charge assistance programs have been implemented by only a few wastewater utilities. Although many wastewater utilities support lower wastewater user charges for low income residents, implementation, billing, and administration problems have limited their establishment. Federal regulations provide five general provisions for establishing lower user charges for low income residential users. These provisions include: (1) a public notice and hearing concerning the lower rates must be provided, (2) low income users must be defined as any residence with a combined household income below the Federal poverty level or by State law or regulation, (3) low income rates must be defined as a percentage of the user charge rates charged other residential users, (4) the cost for low income assistance must be proportionately absorbed by all other user classes, and (5) the total revenue for operation and maintenance, including replacement, of all facilities must not be reduced as a result of providing low income assistance. MSD has chosen to use the State's Division of Family Services low income criteria to determine program eligibility. Use of existing programs to determine eligibility for assistance will help minimize related MSD administration costs. This requirement approxi- mates 125 to 130 percent of the Federal poverty guidelines shown below. Federal Poverty Family Size Guidelines $ One person 6,810 Two persons 9,190 Three persons 11,570 Four persons 13,950 Five persons 16,330 Six persons 18,710 Seven persons 21,090 Eight persons 23,470 For each additional family member add 2,380 Low income assistance is expected to be limited to users that are directly billed by MSD. Approximately 62,000 households in the MSD service area participate in the State's low income assistance programs. ES -4 The level of subsidy to be provided to qualified low income users is proposed to be 50 percent of the wastewater user charge, stormwater user charge, and capital improvement surcharge rates charged other residential users. Implementation and administration costs are assumed to be 15 percent of the total subsidies provided the low income users. It is estimated that the total potential low income subsidy, including administration costs, will be about five million dollars per year. Cost of Service Allocations In developing an equitable schedule of charges for wastewater or stormwater service, costs of service are first allocated by system functions before being distributed proportionately between the various customer classes. Costs of service may be classified and assigned to five basic functional cost components including: • Volume • Stormwater • Capacity • Customer • Strength Unit costs of service are developed by dividing the allocated costs of service by the respective units of service. For rate design purposes, the low income subsidies are included in the development of unit costs of service. This ensures that the costs of the low income program are proportionately absorbed by all other user classes and that revenue for operation and maintenance, including replacements, is not reduced as the result of establishing the program. Costs are assigned to the various customer classes by multiplying assigned units of service by the unit costs of service. Total cost of service for fiscal year 1994 is projected to exceed $180 million. To meet this cost, revenue under existing user charges must be increased by about 68 percent. A large portion of this increase reflects the proposed expansion of stormwater system services and elimination of the stormwater related ad valorem tax and other sources of revenue previously used to meet the minimum stormwater related requirements. User Charge Adjustments In the development of schedules of rates for wastewater and stormwater service, a basic consideration is to establish equitable charges to customers commensurate with the cost of providing service. The only method of assessing entirely equitable rates for wastewater service would be to determine each customer's bill based upon their particular service requirements. Since this is totally impractical and only theoretical, wastewater rates are usually designed to meet average conditions for groups of customers having similar service requirements. Rates should be reasonably simple in application and subject to as few misinterpretations as possible. ES -5 The existing wastewater user charges became effective July 1, 1992. All single family and most multifamily residential customers are charged a uniform flat rate regardless of whether or not they have metered water service. All non-residential customers and some of the larger multifamily customers are charged for wastewater service based on their annual water usage with allowances, as appropriate, for water that is not discharged to the sewer system. The rate structure for non-residential customers is composed of a quarterly base charge and a single volume charge. In addition, surcharges are applicable to non-residential customers which discharge wastewater having BOD or suspended solid strengths above normal strength limits. Normal strength wastewater is considered to be less than 300 parts per million (ppm) for BOD and less than 350 ppm for suspended solids. Existing stormwater user charges are charged on a flat rate per dwelling unit or per property basis for all MSD customers. Stormwater related ad valorem taxes are also assessed to customers within the original service area. A summary of existing rates is shown in Table A. Proposed rates for residential customers are shown in Table B and include separate wastewater charges for unmetered and metered residential customers. For comparison, continuation of the existing flat rate structure would produce uniform district -wide residential charges of $15.3:1 per month for single family residential customers and $11.50 per unit per month for multifamily residential customers. It is proposed to continue the rate form currently charged non-residential customers. Full cost recovery of the pretreatment and industrial monitoring costs by non-residential customers will significantly increase the c .isting base charges. Based on a mass balance analysis of wastewater treatment plant flews and strengths, the existing suspended solids surcharge threshold limit of 350 ppm should be reduced to 300 ppm. As shown in Table B, it is proposed to change stormwater user charges from the existing flat charge per month to a monthly base charge plus a monthly charge per hundred square feet (Csf) of impervious area. Also, as indicated by Table B, Footnote (b), the MSD has under consideration the provision of rate relief to qualified low income residential customers. The proposed rates include a 50 percent reduction of all wastewater and stormwater user charges to such customers. To qualify for this relief, residential customers' income must not exceed eligibility requirements for the State's assistance programs and must be directly billed by MSD. Proposed wastewater user charges and capital improvement surcharges are expected to be fully effective on July 1, 1993. Revised stormwater user charges based on impervious area are expected to be implemented on a district -wide basis beginning January 1, 1994. ES -6 Table A Existing Rates OM&R Capital Portion Portion (a) Total $ $ $ Wastewater User Charges Residential Single Family — $/Month 8.18 2.50 10.68 Multifamily (per unit) — $/Month 6.15 1.88 8.03 Non— residential Base Charge — $/Month (b) 7.78 0.75 8.53 Volume Charge — S/Ccf 0.58 0.19 0.77 Excess Strength Surcharge — $iTon Suspended Solids over 350 ppm 117.00 44.30 161.30 BOD over 300 ppm 195.50 65.70 261.20 COD over 600 ppm 97.75 32.85 130.60 Stormwater User Charges Single Family — $/Month 0.24 0.24 Multifamily (per unit) — S/Month 0.18 0.18 Non—residential — S/Month 0.24 0.24 OM&R — Operation, maintenance, and replacement Ccf — hundred cubic feet ppm — parts per million (a) Capital improvement surcharge. (b) Includes non—residential monitoring charges. ES -7 Table B Proposed Rates Fiscal Year 1994 OM&R Capital Portion Portion (a) Total0') Wastewater User Charges Unmetered - S/Month Base Charge 5.40 0.93 633 Per Room 0.60 0.13 0.73 Per Water Closet 2.24 0.49 2.73 Per Bath 1.87 0.40 2.27 Per Separate Shower 1.87 0.40 2.27 Metered Base Charge - S/Month Residential ! 5.40 0.93 6.33 Non-residential (C) 12.80 0.93 13.73 Volume Charge - $/Ccf 0.92 0.20 1.12 Excess Strength Surcharge - Won Suspended Solids over 300 ppm 127.40 42.20 169.60 BOD over 300 ppm 244.20 67.70 311.90 COD over 600 ppm 122.10 33.85 155.95 Stormwater User Charges Base Charge - S/Month Impervious Charge - S/Month/Csf 0.36 0.00 0.36 0.173 0.000 0.173 OM&R - Operation, maintenance, and replacement Ccf - hundred cubic feet Csf - hundred square feet ppm - parts per million (a) Capital improvement surcharge. (b) Rates for all users except qualified low income residential users. Charges for low income residential users are 50 percent of the charges for all other residential users. (c) Includes non-residential monitoring charge. Note: The proposed rates will replace the existing rates and the existing $0.05 per $100 assessed value stormwater tax. ES -8 A comparison of typical bills, expressed on a monthly basis, under existing rates, updated rates based on the current rate structure, and proposed rates is presented in Table C. The major difference between the bills based on the updated current method and bills based on the proposed rates is the reduction of residential stormwater charges and significant increase of non-residential stormwater charges due to the implementation of the new impervious area billing basis. The bills shown in Table C are for services provided to non - low income customers. The bills for low income residential customers would be one-half of the amounts, under updated or proposed charges, indicated in Table C. The cost impact on non -low income single family residential customers for providing low income assistance will average about $0.60 per month. In comparison, total savings for single family low income households will average about $9.20 per month. Increases in charges to non-residential customers as a result of the low income assistance program would range from 2 to 3 percent. ES -9 Table C Alternative Rate Structure Impact on Typical Customers Updated Current Existing Method Proposed FY1993(a) FY1994(b) FY1994(b) $/mo. $/mo. $/mo. Metered Single Family Customer (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 12.76 13.68 Wastewater Capital Improvement Surcharge 2.50 2.57 2.73 Stormwater User Charge 0.24 5.87 3.15 Total 10.92 21.20 19.56 Unmetered Single Family Customer (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. Area) Wastewater User Charge 8.18 12.76 1251 Wastewater Capital Improvement Surcharge 2.50 257 2.47 Stormwater User Charge 0.24 5.87 251 Total 10.92 21.20 17.49 Metered Multifamily Customer (4 Units, 28Ccf/Mo. and 2,073 sf Imp. Area) Wastewater User Charge 24.60 38.28 31.16 Wastewater Capital Improvement Surcharge 7.52 7.72 653 Stormwater User Charge 0.72 17.60 3.95 Total 32.84 63.60 41.64 Unmetered Multifamily Customer (16 Rooms, 4 Water Closets, 4 Baths and 2,055 sf Imp. Area) Wastewater User Charge 24.60 38.28 31.44 Wastewater Capital Improvement Surcharge 7.52 7.72 657 Stormwater User Charge 0.72 17.60 3.92 Total 32.84 63.60 41.93 Non-residential Customer (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge 75.64 119.56 120.44 Wastewater Capital Improvement Surcharge 22.98 24.33 24.33 Stormwater User Charge 0.24 5.87 532.70 Total 98.86 149.76 677.47 Large Surcharge Customer (271,315 Ccf, 962 Tons SS, 1,961 Tons BOD/Mo., and 789,351 sf Imp. Area) Wastewater User Charge 568,893.98 756,670.32 756,671.20 Wastewater Capital Improvement Surcharge 193,160.00 199,705.43 199,705.43 Stormwater User Charge 0.24 5.87 1,365.94 Total 762,054.22 956,381.62 957,742.57 Large Stormwater Customer (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 17,896.72 17,897.60 Wastewater Capital Improvement Surcharge 3,694.35 3,888.93 3,888.93 Stormwater User Charge 0.24 5.87 7,39037 Total 14,977.57 21,791.52 29,176.90 Ccf - Hundred cubic feet sf - square feet (a) Based on revenue requirements of approximately $104 million. (b) Based on revenue requirements of approximately $181 million. Note: These are average or typical customers. Some customers will pay more and some will pay less. ES -10 Report on Alternative Rate Structures for the Metropolitan St. Louis Sewer District Fiscal Year 1994 Introduction The Metropolitan St. Louis Sewer District (MSD) is responsible for construction, operation, and maintenance of wastewater collection, treatment, and disposal facilities in the metropolitan St. Louis, Missouri area. The service area includes the City of St. Louis and most of St. Louis County. MSD also operates and maintains the City's flood wall pumping stations. In addition, MSD maintains stormwater facilities within the original service area (Mississippi River, Coldwater Creek, and Sugar Creek subdistricts) and plans to assume such responsibility for the total service area if proposed stormwater financing plans are approved. MSD was incorporated under a pl an approved at special election in 1954. Powers, authorities, and responsibilities of MSD in providing wastewater and stormwater services are outlined by the MSD plan (Plan). A principal source of funding for MSD to meet its respon- sibilities, under the Plan, is the revenue derived from rates collected from all served property. Such rates, or user charges, are to be estabished by the MSD Board of Trustees (Board) based upon any classification which tl,:, Bo -rd determines to be "fair and reasonable." The total financing package of the Plan also includes ad valorem taxes and special assessments to benefit districts. Funding of MSD's capital and operating requirements is derived from wastewater and stormwater user charges, a temporary capital improvement surcharge, ad valorem taxes, interest income, engineering and service fees, and other miscellaneous sources. Federal and State grants have provided funding for a significant portion of past capital improvements, but the grant programs were replaced by a State Revolving Fund (SRF) in 1990. As a condition to obtaining construction grants, MSD entered into agreements with the U.S. Environmental Protection Agency (EPA) and Missouri Department of Natural Resources (MDNR). Those agreements include a requirement that MSD establish and main- tain a system of user charges that will recover sufficient revenues to pay for the operation, maintenance, and replacement (OM&R) requirements of the wastewater system. User charges must recover revenue from customer classes in proportion to their respective loading of the system, except that relief to low income users may be provided, and must be approved by 1 MDNR. Current wastewater user charges were approved by the Board of Trustees and MDNR in 1992. Policies and goals for providing services partially dictates the rate form. There are numerous basic rate forms and variations therein, which are in use. The variations reflect each entity's rate design to meet one or several of the following functions: • Recover adequate total revenue. Promote economic use of resources. • Meet EPA/MDNR user charge regulations. Revenue stability. • Recognize customer class cost of service. • Ease of understanding. • Meet local policy considerations. • Simple to administer. Equitable and nondiscriminatory. • Cost-effective to administer. MSD's present wastewater rate form, developed in the 1970's, comprise flat service charges per dwelling unit for residential customers and a base charge plus volume based charges for non-residential customers. Although rates have since been increased, the general form remains. The current stormwater user charges were set on July 1, 1986, and retain the original form of a flat rate. Because ad valorem taxes for stormwater services are levied only in the original service area, MSD cannot provi equal service throughout its service area. Concerns regarding the inequality of service and the need to provide greater services in all areas have resulted in plans to replace the current stormwater taxes and minimal stormwater user charges by a district -wide stormwater charge based on impervious area. The proposed stormwater user charges will not be sufficient to fund stormwater capital improvements. A capital improvement surcharge was approved by voters in 1988 to provide funding for the construction of mandated wastewater treatment facilities and other wastewater capital improvements required to comply with discharge regulations. The surcharge is in addition to other charges and taxes and is limited in its duration to the earlier of: (1) a period of seven years ending December 31, 1995; (2) until the required improvements have been fully funded; or (3) until a total of $436 million has been collected. Due to an increased level of grant funding and favorable construction bids, MSD has determined that the Clean Water Capital Improvement Trust Fund will require about $294 million of revenue from the capital improvement surcharge. The $142 million reduction of required revenue has allowed MSD to substantially lower this surcharge. To begin addressing MSD's most critical wastewater system needs while temporarily keeping the total wastewater charges at their current level, the wastewater user charge was increased in 1992 by the same amount that the capital improvement surcharge was reduced. The increase follows a period of over five years that the wastewater user charges remained at the same level. Due to the increase in the wastewater user charge and the realization that it must continue beyond the period scheduled for the elimination of the capital surcharges, the MSD Board of Trustees authorized this study to investigate alternative rate forms. 2 Purpose The purpose of this study is to examine potential changes to MSD's existing waste- water and stormwater user charge systems to determine if other rate forms could be imple- mented, on a cost-effective basis, that would be more equitable than the current rate structure. The user charge computer model is also updated and modified to provide technological enhancements and incorporate all necessary revisions. Scope The study reviews various alternatives to the existing flat rate structure for residential wastewater service and rate relief to qualified low income users. Included in this review is a cost-effective rate structure for unmetered residential customers that recognizes various dwelling attributes and is consistent with the methods used to develop the City of St. Louis water utility's unmetered rate structure. For single family residential customers whose water supply is metered, a system of charges based upon a "best equated period" when water use is most nearly representative of wastewater discharge is developed. Cost allocations and alternative user charge methods for stormwater services are also reviewed. The major elements of this study include: 1. Analyses of alternative wastew ater billing methods. 2. Development of applicable units of service. 3. Classification of residential stormwater customers. 4. Considerations related to the development of a low income assistance program. 5. Functionalization of costs of service. 6. Revision of cost allocation factors to reflect anticipated operations. 7. Allocation of costs among classes of users. 8. Rate design. 9. Associated rate model enhancements and revisions. Wastewater and stormwater user charges are proposed based on costs of service for the 1994 fiscal year. For purposes of this report, it is expected that revised wastewater user charges and capital improvement surcharges will become fully effective on July 1, 1993, and stormwater user charges, based on impervious area, will be implemented on January 1, 1994. The proposed rates are intended to provide adequate revenues for MSD to cover all revenue requirements comprising operation, maintenance, and replacement expenses and some capital requirements during the fiscal year ending June 30, 1994. The rates have been designed to meet EPA and MDNR user charge requirements and reflect sharing of costs among MSD user classes in a fair and reasonable manner. 3 Additional Studies The original scope of this study has been modified and extended during the study period to reflect changing conditions and new policy considerations. The scope of services described in the preceding section and the remainder of this report incorporates the latest information available and recommended criteria for the establishment of a low income assistance program. Originally, the study was to examine alternatives to the existing wastewater and stormwater user charges to determine if other rate forms would be more equitable than the current structures. Alternative rate forms or revisions to the existing capital improvement surcharge were not to be reviewed. However, as the study progressed, the rate structure of the capital improvement surcharge was also revised to be consistent with the wastewater user charge structure. The magnitude of the indicated rate increases raised concerns about the ability of low income residents to pay their wastewater service bills. In addition, MDNR actions taken in other areas of the state made it necessary to accelerate scheduled replacements for the Lemay Overflow Regulation System (ORS). This resulted in the addition of over $30 million of replacement expenditures during the fiscal year ending June 30, 1994, the year for which alternative rates are being designed. The results of the extended study prompted the evaluation of various alternatives concerning the income level required for qualification in the low income assistance program and the amount of subsidy to be provided by all other customers. Fiscal Year MSD operates on a fiscal year basis beginning July 1 and ending June 30. Fiscal years are referred to herein, by reference to the year in which the fiscal year ends. For example, the fiscal year spanning July 1, 1993 through June 30, 1994 is referred to as "fiscal year 1994." 4 Wastewater Billing Methods A variety of wastewater billing methods are utilized throughout the country. The predominate billing methods equate contributed wastewater volume to water usage. In areas of the country where some or all water customers are not metered, a standard or predominate billing method is not apparent. It is to be recognized also, that any basis for billing waste- water user charges is imprecise and requires the use of reasonable estimates and assumptions. Alternative Rate Structures The District's goal in considering alternative rate structures is to explore improved equity in charges among various customers while maintaining reasonable rate administration costs. That is, to make user charges more directly proportional to individual customers' loading of the wastewater system without large billing cost increases. This improvement is sought particularly in the residential class, both single and multifamily, that are currently charged flat rates per dwelling unit regardless of the respective loadings. Overall alternative methods of billing for wastewater services which will meet this goal are: • Current - Continue present rate structures which bill all metered and unmetered residential accounts a flat late per residential unit. • Alternative 1 - Continue flat rate per residential unit for all unmetered accounts and convert all metered accounts to a rate based on metered water co isumption. • Alternative 2 - Same as Alternative 1 except convert all unmetered accounts to a rate based on property attributes such as rooms and fixtures. • Alternative 3 - Install water meters on all presently unmetered water accounts and convert all accounts to a rate based on metered water consumption. The total cost to install water meters in the City is estimated to be $12 to $45 million. • Alternatives 1A and 2A - Same as Alternatives 1 and 2, respectively, except install water meters on all premises except single family residential. The billing methods for each class of customers is summarized for the current and alternative rate structures in Table 1. Advantages and disadvantages of each alternative are presented in Appendix A. Based upon our understanding of the MSD Board's goals, detailed discussions with MSD staff, and practicality considerations, Alternative 2 seems to be the rate structure which most nearly meets MSD's goals without incurring the significant implementation and main- tenance cost of Alternative 3. v OEM 1111111 INSI Mil MS OM OM NM MIME Table 1 Alternati ve Wastewater User Charge Meth ods Cu stomer Classification Curr ent Rat e Structure Alt ernative 1 Alt ernati ve 2 Alter native 3 1. Metered Single Family Flat rate per dwelling unit with opti on to convert to non— residential (Classificati on N o. 5) Base charge plus volume charge based on Best Eq uated Period metered wat er Same as Alternative 1 Same as Alternative 1 2. Unme tered Single Family Flat rate per dwelling unit Same as current Flat charge per acc ount based up on specific attributes such as r ooms, baths, etc. Require meters and use metered Single Family rate 3. Metered Mu ltifamily Flat rate per dwelling unit with option to convert to non— residential (Classification No. 5) Base charge plus volume charge based on annual metered water usage . Same as Alternative 1 Same as Alternative 1 4. Unmetered Multifamily Flat rate per dwelling unit Same as current Flat charge per account based upon specific attributes such as rooms, baths, etc . Require meters and use metered Multifamily rate 5. Metered No n—residen tial No rmal Strength Base charge plus v olu me charge based on annual water u se Same as current Same as current Same as current 6. Metered No n—residential Excess Strength Same as normal strength plus excess strength surcharge for Same as curren t Same as current Same as current SS and BOD or COD Alternativ es lA an d 2A Same as Alternatives 1 and 2 respectiv ely, except water meters are installed on all unmetered multifamily premises. Best Equated Period The "Best Equated Period" is defined as the winter period when lawn irrigation and other outside water uses are at a minimum and metered water use by residential customers can best be equated to wastewater discharges. For this study, detailed water usage by metered residential customers was available from the St. Louis County Water Company (Company). The Company's metered accounts comprise about 89 percent of all metered residential accounts in MSD's service area. Therefore, findings based on the Company's records are considered representative for purposes of determining the Best Equated Period. A comparison of monthly water usage for residential customers indicates that average water use is least on bills rendered in the months of February, March, and April. Because the Company bills a large majority of its residential customers quarterly, bills rendered in February include water used primarily during the months of November, December, and January. Bills rendered in April would include water use primarily during January, February, and March. It is recommended that the Best Equated Period be defined as the period covered by bills that are based on meter readings from January 15 through April 15. Average daily water use during this period can be used, for both monthly billed and quarterly billed accounts, as a basis for wast water billing throughout the year. City of St. Louis Water Utility's Residential Billing Practice The flat rate residential water rate structure used by the City of St. Louis (City) is apparently based on studies conducted in 1958. Prior to the 1958 study, most of the City's customers were billed on a schedule of tlat rates that had been in effect since 1917. The 1958 study proposed a reduction of the number of different flat rate charges from over 200 to less than 20 and limited their application to residential customers. Commercial and industrial customers were required to meter their water usage. The revised rate structure and level of charges was approved by the Board of Aldermen and put into effect in the spring of 1959. The following table compares the 1959 rates with the current residential flat rates and shows the cumulative percentage increases for each rate. 7 Residential Flat Rate Comparison for the City of St. Louis Water Type of Charge 1959 Charges Current Charges Percentage Increase Room charge, each $0.55 $1.52 276 Water closet, each $2.00 $5.92 296 Bath, each $1.60 $4.97 311 Shower, separate from bath, each $1.60 $4.97 311 Urinal, each $2.00 NA NA Automatic laundry washer, each $0.55 NA NA Garbage disposal unit, each $0.30 NA NA Sprinkling - $/foot $0.035 $0.102 291 Considering the more than 30 year difference in time between the two rate schedules, the overall increases are relatively consistent. This suggests that the volume bases developed for the 1959 charges is still the basis for the current charges. The 1959 rates for metered water usage was also on a pure volume basis but imposed a schedule of minimum charges for low flow users. The current water rate schedule for metered users is based on a readiness to serve charge plus a quantity charge. Therefore, the metered and unmetered water rate schedules may no longer be compatible. Based on a review of the supporting calculations from the 1958 water rate study, average water usages for each type of water charge were determined to be: • 16 gallons per day (gpd) for each room of a dwelling. • 60 gpd for each water closet. • 50 gpd for each bath or separate shower. • About 1 gpd for each foot of frontage. Application of the indicated usage allowances to the average number of rooms and fixtures for residential dwelling units determined average annual wastewater volumes of 117 hundred cubic feet (Ccf) for single family customers and 88 Ccf for each multifamily dwelling unit. The winter quarter average water usage for single family customers served by the St. Louis County Water Company is about 108 Ccf per year, slightly less than the average water usage for an unmetered customer. The usage expressed on a per room basis is based on the estimated total of all other indoor water usage divided by the average number of rooms for a residential unit. Due to 8 continued additions of water using devices such as dishwashers, garbage disposals, and automatic clothes washers since the 1958 rate study, it is possible that the usage per room may have increased since 1959. In addition, the 1959 water rates had allowances for some of these appliances that were not continued in the current rate structure or combined into an increased room charge. Other potential factors affecting the usage allowances are the availability of low flush water closets and low flow shower heads. Although adjustments to the usage allowances may be justified, any such adjustment would result in wastewater charges being disproportionate to the long established water rates. To provide an initial schedule of wastewater charges consistent with the historic development of City flat rate water charges, it is recommended that the indicated indoor water usage allowances be used as the basis for determining unmetered residential wastewater flow and user charges. Flat Rate Sewer Service Billing Methods - Selected Communities Policies and the basis of charges for sewer service without benefit of metered water consumption vary between communities as shown in Table 2. The charges shown may recover operation and maintenance expense, debt service requirements, capital projects, normal annual renewals and replacements, and a customer service charge per bill depending upon the individual community. In some cases, the communities are implementing metering programs to eventually base charges on meter size and/or volume so unmetered customers may only represent a portion of total system customers or may indicate that metered water consumption is not available to determine sewer service charges. The bases for residential charges shown in Table 2 include flat rates by type of dwelling, number of meter connections, number of rooms, number of plumbing fixtures, and number of units in multifamily facilities. Specific arrangements such as a shared kitchen or a different rate for an apartment manager's unit may be identified. For residential type service, the general trend is to charge approximately the same for a single family residence, mobile home, or town house. Charges per dwelling unit in multi- family housing such as condominiums, apartments, and duplexes are normally somewhat less than the single family residential charge. One community indicates a higher rate for a single family residence with a pool and another differentiates charges for mobile homes located in a mobile home park versus a mobile home estate. For comparison purposes, the level of charges are indicated on a monthly basis, but may be billed on an annual amount or calculated on an annual amount normalized for quarterly or monthly billing. Denver calculates the annual amount based on the greater of the equivalent sewage contribution in relation to the number of rooms and water using devices on the premises or a minimum flat rate per residence. In addition to the number of 9 MI IMO MB Ma IMO MO ME MO EMI OM MEI T able 2 Flat Rate Wastewater Charges For Selected Communities O C ommunity Si ngle Family Flat Rate No. of Rooms Fixt ures Water Cl osets Baths M obile H ome Apartment Condomini um / Duple x $/m onth $/month $/month $/month $/month $/month $/unit $/unit Aurora, CA 8.22/ Mostly 5.98 5 .98 Metered Plus Volume Bozeman, MT each 9.18 9 .18 9 .18 9 .18 D enver, CO 4. 19 1-4 each 1 .02 ea . wtr. 0 .70 First 2.68 First 2 .09 Minimum >4 ea . add! 0 .22 using Add'! 1.86 Add'! 1.40 12.29* device Ft. Co llins, CO 12. 78 10 .42 G reeley, CO 13. 99 9.54 9.54 H enderso n, NV 11. 21 Estate 11 .21 Estate 10 .77 Estate 10 .77 Park 8 .94 Idaho Falls, ID 8. 50 6.40 8 .50 Las V egas, NV 7. 90 w/pool 8. 66 7 .90 5.37 Reno, NV 8. 70 8 .70 8 .70 8 .70 St. Lou is, MO 10. 68 10 .68 8 .03 8.03 Sacramento, CA 1-3 4.03 4-5 5. 12 6-7 6.15 8-9 7. 11 10-15 8. 16 >15 add'l 0.57 San D iego, CA 20. 39 20 .39 San Jose, CA 15. 30 8.70 8 .70 8.70 Tu rlo ck, CA 15 5. 95 Charges are based on a schedule of equivalent 16-20 7. 40 fixtures. Fo r example, one water closet is 21-25 8.80 equivalent to six fixture units. 26-30 10.20 31-35 11. 65 36-40 13.05 41-45 14.50 46-50 15.90 51-55 17.30 56-60 18. 75 * Based on 6 rooms, 2 fixtures, 1 water closet, and I bath. rooms, the annual charge recognizes a base charge each for the first bath and water closet with reduced incremental charges for additional such facilities. All of the flat rate charges levied by Denver are based on a uniform volume charge of $1.53 per thousand gallons which is also applied to metered residential customers. The contributed wastewater volume for each flat rate is stated in the Denver Code as follows: Housing Attribute Annual Contributed Volume Equivalent Contributed Volume 1,000 gal./yr. gpd Rooms (1-4, each) 8.030 22.0 Additional Rooms, each 1.736 4.8 First Bath 16.425 45.0 Each Additional Bath 10.950 30.0 Fi, st Water Closet 21.000 57.5 I .eh /`.dditional Water Closet 14.600 40.0 Each Water Using Device 5.475 15.0 Flat rate sewer set rice charges in the sample range from $4.03 to $20.39 per month with the average at about $11.00 per month for typical single family residential service. Charges for multifamily units range from $4.03 to $10.77 per month. The multifamily average charge is about $7.80 per unit per month. Three communities in the sample base charges on the number of rooms and/or fixtures for the premises. The charges for Sacramento are based entirely on the number of rooms and appear to be slightly below the sample average. Denver has a lower charge per room but falls near the overall sample average with additional charges for baths and water closets. An average sized home in Turlock (26-30 equivalent fixtures) would pay slightly less than the average wastewater charge for the sampled communities. 11 Residential Stormwater Classification Several alternative classification methodologies have been identified in determining the basis for an equitable stormwater user charge for the residential customer class. • Current - Continue present rate structure which bills all customers a flat rate per account. • Alternative A - Residential Statistical Sample based on average impervious area coverage. • Alternative B - Modified Actual Impervious Area based on common impervious area characteristics from real estate records. • Alternative C - Actual Impervious Area using impervious area measure- ments of all residential property. • Alternative D - Impervious Area Billing Blocks using modified or actual impervious area and blocked charges. • Alternative E - Exemption of Initial Block of Impervious Area using any of the impervious area measurement methods with no charges levied against the first 500 or 1,000 square feet of impervious area. The stormwatcr used :harge structure for each class of customers is summarized for the current and alternative classification methodologies in Table 3. Advantages and disad- vantages of each alternative are presented in Appendix B. Alternative A - Residential Statistical Sample In determining an average impervious area (AIA) for the residential class, 975 residential customer accounts were randomly sampled from the residential customer billing base. These accounts represented one through four family subclasses. Impervious area data, defined to include first floor living area, garages, porches, sidewalks, and driveways was extracted from the City and County assessor's records. An impervious area database was created and various statistical analysis was performed on the residential sample data. Statistical results indicated that the AIA for the residential customer class was 2,076 square feet, plus or minus 51 square feet with a 95 percent confidence level. Other statistical tests were performed on the data, specifically tests to determine if there was a significant difference in average impervious areas across the City and County. Average impervious areas for the City and County were estimated. The County AIA was 2,174 square feet plus or minus 76 square feet. City AIA was determined to be 2,002 square feet plus or minus 66 square feet. Statistical tests confirmed that there was a statistical significant difference in these averages at the 95 percent level of confidence. The equity in using a single flat rate user charge based on AIA for the entire residen- tial customer class could be questioned based on these latter statistical tests. However, the 12 MN MB OM Mena" ERN M MI Mili MN Table 3 Altern ative Stormwat er User Charge Meth ods Cu stomer C lassific ation C urre nt Rate Str uct ure Alt er native A Alternative B Alternative C Alternative D 1. Single Family Flat rate per dwelling unit Average impervi ous area Impervious area from Actual impervious area Flat rates for blocks of or flat rate per account if of one through four family assess ors' data or aerial from aerial photography imper vi ous areas in 500 elected Non—residential basis for wastewater charge based on database sample analysis photos if assessors' data is not a vailable and comp uter techn ology to 1,000 foot ranges 2. Small Multifamily Flat rate per dwelling unit Average impervi ous area Impervious area from Actual impervious area Flat rates for blocks of (one through four family) or flat rate per account if of one through four family assess ors' data or aerial from aerial photography impervious areas in 500 elected Non—residential basis for wastewater charge based on database sample analysis ph ot os if assess ors' data is not available and computer technology to 1,000 foot ranges 3. Large Multifamily Flat rate per dwelling unit Impervio us area from Same as Alternative A Actual impervi ous area Same as Alternative A (greater than fou r family) or flat rate per acco unt if elected Non—residential basis fo r wastewater charge assessors' data or aerial pho tos if assess ors' data is no t available from aerial photography and computer technology 4. Non—residential Flat rate per account Impervio us area from assessors' data or aerial photo s if assessors' data is no t av ailable Same as Alternative A Actual imper vious area from aerial photography and computer techn ology Same as Alternative A A lternative E Same as each respective alternative with the exception that the first 500 to 1,000 square feet are exempt from imper vious area charges. relative ease in determining and implementing a single flat rate user charge based on AIA does have merit. The principal advantage of using a single flat stormwater charge based on AIA for the entire residential customer is the relative ease in determining and implementing the charge. The principal disadvantage is that average charges applied to all users cannot reflect the specific impervious area of each property. Alternative B - Modified Actual Impervious Area As a result of the equity issues of using AIA developed from the residential statistical sample, an analysis of City and County assessor real estate records was undertaken to determine the impervious area characteristics that are maintained by both agencies. It was determined that both assessors maintained residential building or premise footprint and garage additions. Therefore, the modified actual impervious area for each residential customer would be developed from impervious area data common to both assessors real estate data. The process to develop this modified actual impervious area coverage for each residential customer required the following methodology: 1. Split the residential customer billing base into City and County accounts. 2. Match the District's City residential customer billing records to the City assessor's real estate records by address. 3. Extract from the City real estate records building or premise footprint and garage addition data. The above process has been completed in the City with the exception of a small number of residential customer billing records that will have to be manually researched. The process to obtain the common real estate impervious area data in the County is the same as used in the City and is underway. The basis for billing the impervious area user charge will be reexamined because the residential customer class will migrate from a single flat rate to some other basis based on impervious area coverage. It is anticipated that a detailed analysis of total impervious area coverage for the City and County may be required. Allocation of costs to the residential customer class will then be developed, along with new user charges. Principal advantages of the modified actual impervious area include: 1. Reflects variation of impervious area between specific properties. 2. Costs less to implement than actual measured impervious area. 3. Impervious area database is immediately available. Principal disadvantages include: 1. Excludes certain impervious area. 2. Will require some implementation cost. 14 Alternative C - Actual Impervious Area At some time after implementation of the stormwater user charge based on the present methodology, development of a stormwater billing database based on actual impervious area coverage for each property may be initiated. Because it is very labor intensive and costly to measure each property individually with field personnel, other methods have been explored. A combination of photogrammetry, image processing, and computer mapping technologies could be used to digitize all impervious area features within each individual stormwater customer's property boundaries. Start up costs for this project, including hardware, software design and development, map digitizing, and aerial photography acquisition will be significant. The feasibility of this refined residential impervious area determination will depend, to some extent, on the value of database components for other purposes. Alternative D - Impervious Area Billing Blocks An alternative, less refined, billing basis using modified or actual imperious area would be blocked charges. That is, flat charges would be assessed for blocks of impervious area per propert:. For example, properties with impervious area within a block would be charged the same whether just more than the block minimum or nearly equal to the block maximum, as follows: 0 square feet to 1,000 square feet - $X per quarter 1,000 square feet to 2,000 square feet - $Y per quarter 2,000 square feet to 3,000 square feet - $Z per quarter Over 3,000 square feet - $A per square foot per quarter Impervious area blocks could be 500 square feet or any other practical level. Each block charge would reflect the average impervious area for all properties falling within the block times the unit charge per square foot. In the example, block charges would reflect a unit cost of $A per square foot per quarter. The advantage of block charges is a somewhat reduced administrative cost because charges to properties with impervious area near the middle of each block would not be impacted by small inaccuracies in the measured impervious area. For example, assuming the 1,000 to 2,000 square foot block above, charges to a property with measured impervious area of 1,600 square feet would not change even though actual area were determined to be 1,400 or 1,800 square feet. There are two disadvantages of the block structure: (1) charges do not totally reflect actual impervious area and (2) small inaccuracies in impervious area data that result in moving a propert:: from one block to another smaller or larger block results in large changes in resulting charges. The disadvantages of block charges are deemed to heavily outweigh the advantages, therefore, the alternatives block rates are not recommended. 15 1 1 e e Alternative E - Exemption of Initial Block of Impervious Area In order to provide a level of "lifeline" benefits in the stormwater charges, MSD has considered exemption of the initial block of impervious area from stormwater user charges. Any such exemption is a matter of MSD policy and does not reflect cost of service considerations. The level of exemption mentioned has been the first 500 or 1,000 square feet. The exemption would have to be given to both residential and non-residential properties in order to be equitable. In order to recover lost revenue from an exempted area of 500 square feet per property and assuming an average charge of $0.17 per Csf per month, the average charge would have to be increased about $0.025 per Csf per month. This exemption and increased average charge would favor properties with small impervious areas over properties with larger impervious areas. Residential Stormwater Classification Summary Initially, it was planned to implement a flat rate residential user charge based on the average impervious area developed from a statistical analysis of a random sample of residential customer accounts. Since the aver ge impervious area figure developed from the sample data means that about half of th residential customers should have impervious area coverage below and half should have impervious area coverage above the average figure, another method was determined to be more equitable. The method that is presently being implemented involves determining a modified actual imperviou area figure for each residential customer based on real estate records maintained by the City and County of St. Louis. The impervious area number will not be the actual impervious area, but will be based on common impervious area characteristics maintained in the real estate records. Those common modified characteristics include the building or premise footprint and any garage additions. The advantage over the initial process to determine an average impervious area is that each residential customer's building or premise footprint and parking structures are used to develop the impervious area coverage. At some later date, the impervious area coverage for each residential customer may be developed using actual property measurements made from aerial photography in the City and County. This is by far the most equitable but also the most time consuming and expensive. 1 Units of Service t t 1 The number of units of service required by each customer class provides a means to proportionately distribute costs allocated by functional cost components to the various customer classes. The service requirements for which each class of customers is responsible include the volume of wastewater contributed, water entering the sewers though infiltration and inflow, the peak rate of wastewater flow or capacity, the strength of the wastewater, the amount of impervious area, and the number of quarterly bills rendered. Table 4 shows a summary of the units of service projected for fiscal year 1994 by user class. User Classes MSD has historically served two broad customer groups. These groups include (1) residential, consisting of all single family and most multifamily customers, and (2) non- residential, consisting of all commercial, municipal, and industrial customers, as well as some larger multifamily customers which chose to be placed on a metered basis. The implementation of a new rate structure v, ill require an expansion of these two groups to reflect the proposed billing bases. The cuotomer groups or user classes required for the proposed rate structure are: Residential Non -Residential • Unmetered Single Family • Normal Wastewater Strength • Metered Single Family • Excess Wastewater Strength • Unmete. cd Multifamily • Metered Multifamily Billable Wastewater Volume Billable wastewater volume is the estimated wastewater flow contributed to the sewer system by residential and non-residential customers. An estimate of the billable wastewater volume for unmetered residential customers is proposed to be based on the same indoor water usage attributes used to develop the water rates for unmetered water customers in the City. The indicated unit usages are: • 16 gallons per day (gpd) for each room. • 60 gpd for each water closet. • 50 gpd for each bath or separate shower. Billable wastewater volumes for all single family residential customers with metered water supplies will be estimated on the basis of water usage during the period best equated to contributed wastewater volume. For single family residential customers, billable wastewater volume is proposed to be based on winter quarter water usage. For multifamily users 17 1 1 0 1 i Table 4 Units of Service Fiscal Year 1994 (1) (2) (3) (4) (5) (6) (7) Wastewater Strength Customer Related Line Suspended All Industrial No. Volume Capacity Solids BOD Stormwater Customers Customers Ccf Ccf/day pounds pounds Csf Services Accounts Single Family Metered 1 Contributed 30,228,700 82,818 37,725,418 41,497,959 2 Infiltration/Inflow 28,130,300 192,673 7,898,988 877,665 3 Total 58,359,000 275,491 45,624,406 42,375,624 4,355,166 279,895 Unmetered 4 Contributed 7,729,900 21,178 9,646,915 10,611,607 5 Infiltration/Inflow 6,807,400 46,626 1,911,518 212,391 6 Total 14,537,300 67,804 11,558,433 10,823,998 1,024,611 65,849 Multifamily Metered 7 Contributed 9,361,700 25,648 11,683,402 12,851,742 8 Infiltration/Inflow 4,054,100 27,768 1,138,391 126,488 9 Total 13,415,800 53,416 12,821,793 12,978,230 1,533,333 17,583 Unmetered 10 Contributed 6,822,100 18,691 8,513,981 9,365,379 11 Infiltration/Inflow 4,167,200 28,542 1,170,150 130,017 12 Total 10,989,300 47,233 9,684,131 9,495,396 507,572 30,807 Non-residential 13 Contributed 38,619,200 105,806 48,196,762 53,016,438 14 Infiltration/Inflow 13,694,900 93,801 3,845,528 427,281 15 Surcharge 25,600,000 66,600,000 16 Total 52,314,100 199,607 77,642,290 120,043,719 8,490,324 27,592 27,592 Stormwater 17 Infiltration/Inflow 0 0 0 0 Total 18 Contributed 92,761,600 254,141 141,366,478 193,943,125 19 Infiltration/Inflow 56,853,900 389,410 15,964,575 1,773,842 20 Total 149,615,500 643,551 157,331,053 195,716,967 15,911,006 843,452 27,592 421,726 Ccf - hundred cubic feet Csf - hundred square feet 18 1 e d and non-residential customers, billable Ni :xstewater volume is proposed to be based on annual water usage with exemption allowances for any water that does not enter the sewer system. An analysis was performed to estimate the total unmetered water usage in the City of St. Louis. Depending on the values used to estimate unaccounted for water, water usage attributable to flat rate water sales can vary significantly on a month by month basis. A review of a reasonable range of unaccounted for water usage indicates that the flat rate water sales determined by the previously indicated unit usages are within the range of possible unaccounted for water variances. Therefore, it is recommend that the indicated unit usages be used as the basis for determining billable wastewater volume for all unmetered customers. Infiltration/Inflow All water entering the sewer system by ground water infiltration or surface water inflow that reaches the wastewater treatment plants is considered to be infiltration/inflow. All surface water that bypasses the wastewater treatment plants or is discharged directly to a watercourse is considered to be stormwater. Based on total influent flows recorded at the wastewater treatment plants and estimates of billable wastewater volume, district -wide infiltration/inflow is estimated to he about 38 percent of the total wastewater flow reaching the treatment plants on an annual basis. Each user class should bear its proportionate share of the costs associated with infiltration/inflow, as the wastewater system must be able to convey and process the total wastewater flow. Estimated infiltration/inflow volume is allocated to user classes assuming th«t 50 percent of the total is distributable on a customer basis and the iei_utining 50 percent is distributable on a contributed volume basis. Table 5 shows the allocation of estimated infiltration/inflow to each user class. Peak Capacity Units The responsibility for collection system capacity cost varies with the estimated flow rates of both contributed wastewater and infiltration/inflow attributable to each user class. Infiltration/inflow is estimated to comprise about 61 percent of the total peak flows based on a peak to average ratio of 2.5 times that of contributed flow. Wastewater Strength The wastewater strength responsibility of each user class, normally expressed in terms of biochemical oxygen demand (BOD) and suspended solids, is based on the estimated average strength concentrations and contributed wastewater volume for each user class. Table 5 Allocation of Infiltration/Inflow Fiscal Year 1994 Estimated Line No. of Contributed Infiltration/Inflow No. Customer Class Accounts Volume Customer Volume Total Wastewater Service Single Family 1 Metered 279,895 30,228,700 18,866,600 9,263,700 28,130,300 2 Unmetered 65,849 7,729,900 4,438,600 2,368,800 6,807,400 Multifamily 3 Metered 17,583 9,361,700 1,185,200 2,868,900 4,054,100 4 Unmetered 30,807 6,822,100 2,076,600 2,090,600 4,167,200 5 Total Residential 394,134 54,142,400 26,567,000 16,592,000 43,159,000 6 Non—residential 27,592 38,619,200 1,859,900 11,835,000 13,694,900 7 Total 421,726 92,761,600 28,426,900 28,427,000 56,853,900 Ccf Ccf Ccf Ccf Ccf — hundred cubic feet 1 t 1 Operational records for the wastewater tre atment plants indicate that the combined weighted average strength of wastewater during the last two fiscal years was about 200 parts per million (ppm) for BOD and about 175 ppm for suspended solids. Allowances for average wastewater strength associated with infiltration/inflow are estimated to be 5 ppm for BOD and 45 ppm for suspended solids. Maki1_g adjustments for infiltration/inflow, excess -strength units subject to surcharge, waste hauler loadings, and special direct billings, average contributed wastewater strengths are determined to be approximately 220 ppm for BOD and 200 ppm for suspended solids. Average contributed wastewater strengths are estimated to be the same for all customer classes recognizing that the type of development in MSD suggests that differences, if any, in average wastewater strengths among the classes are not significant. The estimates of BOD and suspended solids strengths in excess of normal limits are assigned to the surcharge customer classification, and are identified separately. The estimates are based on data maintained by MSD and utilized for current billings. Excess wastewater strength loadings related to waste hauler discharges are not included in the total surcharge units since the related costs are recovered by a separate charge. Stormwater The responsibility for stormwater removal services can be related to the level of impervious area of each customer's property. For single family residential customers, an average area of 1,556 square feet of impervious area, excluding driveways and sidewalks, is estimated for initial cost allocation and rate design purposes. Actual building areas maintained by the City and County assessor's iffices for individual residential properties is expected to be compiled into an MSD database prior to the initial billing. Actual area for non-residential customers is already available for billing purposes. Customer All billing and collection costs and a portion of the costs related to infiltration/inflow are allocated to user classes on the basis of the respective number of accounts or services. Although most customers are provided both wastewater and stormwater services, MSD also provides wastewater only or stormwater only services to a small number of customers. Costs related to billing and collection are recovered equally from wastewater and stormwater customers. v 1 r 1 Low Income Assistance Program Low income wastewater user charge assistance programs have been implemented by only a few wastewater utilities. Although some wastewater utilities support the concept of lower wastewater user charges for low income residents, implementation, billing, and administration problems have generally limited their establishment. Potential implementation and administration problems for MSD mainly concern getting the rate relief directly to the low income customers. For example, a large majority of low income households reside in rental dwelling units and are not directly responsible for payment of MSD charges. Therefore, these users may not directly benefit in reduced user charges. In addition, many of the low income households reside in government subsidized housing, with rent amounts already based on their ability to pay. Federal Regulations A provision for low income assistance programs to be supported entirely by wastewater user charge systems is authorized by the Water Quality Act of 1987 (Public Law 100-4, Section 204[b][1]). Rules and regulations for implementing this provision are provided by EPA Construction Grant Regulation 40 CFR Part 35, Section 35.1240(i), Low Income Residential User Rates. This regulation states that: (1) Grantees may establish lower user charge rates for low income residential users after providing for public notice and hearing. A low income residential user is any residence with a household income below the Federal poverty level as defined in 45 CFR 1060.2 or any residence designated as low income under State law or regulation. (2) Any lower user charge rate for low income residential users must be defined as a uniform percentage of the user charge rate charged other residential users. (3) The costs of any user charge reductions afforded a low income residential class must be proportionately absorbed by all other user classes. The total revenue for operation and maintenance (including replacement) of all facilities must not be reduced as a result of establishing a low income residential user class. Federal regulations do not have low income provisions for stormwater user charges or capital charges such as the capital improvement surcharge. However, the above regulations pertaining to wastewater user charges are also expected to be applied to the development of these charges. 22 Poverty Guidelines The Federal poverty level guidelines defined in 45 CFR 1060.2 are updated and published annually in the Federal Register by the Department of Health and Human Services. The latest guidelines were published on February 14, 1992 in Volume 57, Number 31, Page 5455 of the Federal Register. The current poverty guidelines for all states except Alaska, Hawaii, and District of Columbia are shown below. Poverty Family Size Guidelines One person $ 6,810 Two persons 9,190 Three persons 11,570 Four persons 13,950 Five persons 16,330 Six persons 18,710 Seven persons 21,090 Eight persons 23,470 For family units with more than eight members, an increase of $2,380 per additional family member is allowed. Poverty Status in St. Louis and St. Louis County Estimates made by the U.S. Bureau of the Census, based on social, economic, and housing characterise : s reported in the 1990 Census, indicate that there are approximately 18,872 families living in the City of St. Louis with incomes below the federally determined poverty level. This represents 20.6 percent of all families in the City. In St. Louis County, exclusive of the City, about 10,990 families or 4.0 percent of all families in the area have incomes below the poverty level. Therefore, a total of 29,862 families or about 8.2 percent of all families in the combined city/county area are estimated to be living at or below the established poverty levels. This total does not include single persons living alone since the U.S. Bureau of the Census defines the term "family" to be a group of two or more persons related by birth, marriage, or adoption that live together in a single dwelling unit. In order to estimate the number of single person families residing in the MSD service area, the number of single persons living alone who qualify for food stamps was obtained from the Missouri Department of Social Services. Basic eligibility requirements for this entitlement program require that the individual or family have an income less than or equal to 130 percent of the Federal poverty level. The Missouri Department of Social Services reports that 23,251 single person households currently meet the eligibility requirement to receive food stamps in St. Louis City 23 and County. This figure is adjusted downward to eliminate single person households living above the Federal poverty level. It is estimated that approximately 13,778 single person households reside in the City and 4,107 reside in the County and which are at or below the Federal poverty level. A total of 47,747 families and single person households with total incomes at or below Federal poverty level guidelines are believed to be living in the MSD service area. A summary of all households in the MSD service area at or below alternative Federal poverty guideline levels is presented in the table below. Household Types City County Total 100 % of Poverty Guidelines Families Single Person Households Total 18,872 13,778 10,990 4,107 29,862 17,885 32,650 15,097 47,747 125% of Poverty Guidelines 42,013 17,568 59,581 130% of Poverty Guidelines 43,885 18,062 61,947 The table above indicates that 61,947 households meet the food stamp eligibility requirement of 130 percent of the Federal poverty level. However, this number represents only those households which are currently participating in the food stamp program. It is estimated that about 23 percent of households eligible for food stamps are not participating in the food stamp program. Interpolation between the number of households below the Federal poverty guidelines and the number of households participating in the food stamp program determined an estimate for the number of households at 125 percent of the Federal poverty level that are likely to apply for low income assistance. A fourth alternative studied assumed that all additional households in the service area which are at or below 125 percent of the Federal poverty level but are not currently participating in the food stamp program would apply to MSD for low income assistance. It is estimated that a total of 76,985 households in the MSD service area meet the 125 percent eligibility requirement. After review of the various alternatives, the State's programs are under consideration as the MSD criteria for low income assistance. The assistance is expected to be limited to customers which are billed directly by MSD. Recognizing that a portion of all households eligible for the State's programs are not directly billed, the total number of households currently participating in State programs (61,947) is used as a conservative estimate of the number of low income households that may participate in the low income assistance program. 24 Use of existing programs to determine eligibility for assistance will help minimize related MSD administrative costs. Housing Characteristics A large majority of low income households reside in rental dwelling units. Therefore, all low income families and single person households are assumed to reside in the following types of housing units based on the percentage distribution of total households and occupied rental housing units developed by the Urban Information Center, University of Missouri, St. Louis. r Housing Units Low Income Households Percentage Total City County City County Total Single Family 1 Family, Detached 9.0 19.0 3,950 3,432 7,382 1 Family, Attached 3.0 4.0 1,317 722 2,039 Subtotal 12.0 23.0 5,267 4,154 9,421 Small Multifamily 2 Family 23.0 5.0 10,094 903 10,997 3-4 Family 28.0 18.0 12,228 3,251 15,539 Subtotal 51.0 23.0 22,382 4,154 26,536 Large Multifamily 5-9 Family 9.0 18.0 3,950 3,251 7,201 10-19 Family 7.0 22.0 3,072 3,974 7,046 20-49 Family 6.0 8.0 2,633 1,445 4,078 50 or More 14.0 5.0 6,144 903 7,047 Subtotal 36.0 53.0 15,799 9,573 25,372 Mobile Home and Other 1.0 1.0 437 181 618 Total 100.0 100.0 43,885 18,062 61,947 Low Income Subsidy The level of subsidy to be provided to qualified low income users that is under consideration is 50 percent of the wastewater user charge, stormwater user charge, and capital 25 improvement surcharge rates charged other residential users. Analysis of the indicated low income households combined with average wastewater contributions from similar user classes determines the applicable billing units for the low income user class. The billable units multiplied by the proposed rates and the 50 percent subsidy level determines the amount of subsidies required. It is assumed that administration costs will be approximately 15 percent of each indicated subsidy. Therefore, the total potential low income subsidy, including a 15 percent allowance for administration costs, is estimated to be about $5,062,000 per year. This includes total subsidies of $3,190,000 for wastewater user charges, $553,000 for stormwater user charges, and $658,000 for capital improvement surcharges, as well as about $661,000 for related implementation and administration costs. Cost of Service Allocations In developing an equitable schedule of charges for wastewater or stormwater service, costs of service are allocated to the various customer classes according to the service requirements of each class. Cost of service allocations consider the volume of wastewater contributed, infiltration/inflow, peak capacity, strength of wastewater, number of customers, and other relevant factors. t 1 d Cost of Service to be Allocated The cost of service to be allocated to the various user classes consists of total revenue requirements for fiscal year 1994, as summarized in Table 6. In determining costs of service to be met from user charges, other operating revenues, ad valorem taxes and investment income are deducted from total revenue requirements. The elements comprising the cost of service are assigned to the three cost categories of operating expense, replacements, and capital costs. Operating expense consists entirely of operation and maintenance expenses. Operating expense is reduced by applicable ad valorem taxes and various operating revenues. The ad valorem taxes are received for the general administration of MSD and are only used to partially offset the administrative or indirect operating expense. Replacement costs include allowances for accrual of emergency funds, routine capital outlays (500 account), and wastewater, storm sewer, and major sewer replacements. Capital costs for MSD consist entirely of capital improvements financed from annual revenues. The revenue required for the Consent Decree related capital improvements is obtained through the capital improvement surcharge. The proposed policy to bill all metered residential customers based on water usage is estimated to add about $360,000 to the total cost of service for fiscal year 1994. The total cost of service to be recovered from user charges applicable to all customers amounts to $181,130,600 with net operating expense totaling $87,807,900, replacement costs totaling $68,023,700, and capital costs totaling $25,299,000. Functional Cost Components The total cost of service is analyzed by system functions to distribute costs of service proportionately between the various classes of customers. Costs of service may be classified and assigned to five basic functional cost components including volume related costs, capacity related costs, strength related costs, stormwater costs, and customer related costs. Volume costs vary directly with the quantity of wastewater contributed and include capital costs related to investment in system facilities which are sized on the basis of wastewater volume, and the operation and maintenance expense related to those facilities. 27 Table 6 Total Cost of Service Fiscal Year 1994 Line No. Operating Expense Revenue Requirements 1 O&M Expense 92,339,000 2 Emergency Fund Accrual 3 Capital Outlay 4 Major Sewer Replacements 5 Wastewater System Replacements 6 Storm Sewer Replacements 7 Consent Decree Projects 8 Low Income Program 9 Total Revenue Requirements Met from 10 Administrative Tax Revenue 11 OMCI Fund Transfers 12 Engineering Service Fees 13 Reimbursement of Maint. Expense 14 Miscellaneous Income 15 Interest Income 16 Ind. permits & Sampling Charges 17 Waste Hauler Fees 18 Total 19 Net Cost of Service to be Met from User Charges San. O&M (37.5%) 562,000 Replacements 1,000,000 8,123,700 30,900,000 16,000,000 12,000,000 Capital 25,200,000 99,000 Total 92,339,000 1,000,000 8,123,700 30,900,000 16,000,000 12,000,000 25,200,000 661,000 92,901,000 68,023,700 25,299,000 186,223,700 Other Sources 3,193,000 600,000 1,100,500 20,000 (1,050,400) 575,000 270,000 385,000 5,093,100 3,193,000 600,000 1,100,500 20,000 (1,050,400) 575,000 270,000 385,000 0 0 5,093,100 87,807,900 68,023,700 25,299,000 181,130,600 Total Cost of Service San. — Sanitary SW — Stormwater San. Repl. (29.6%) SW Repl. (8.0%) CIS (14.0%) SW O&M (10.9%) O&M — Operation & Maintenance Expense Repl. — Replacements CIS — Capital Improvement Surcharge 28 1 1 Capacity costs vary in proportion to peak or maximum rates of flow. Costs such as operating or capital costs for pump stations, conveyance lines, and preliminary treatment facilities are among costs allocated to the capacity component. Suspended solids strength costs are those costs of wastewater treatment which vary according to the quantity of suspended solids in the raw wastewater. Costs such as the capital and operating costs of primary sludge pumping and sludge conditioning and disposal are allocated to the suspended solids component. Biochemical oxygen demand (BOD) costs are those costs which are influenced in magnitude by the BOD of the raw wastewater, and include costs related to aeration and sludge treatment and disposal. Stormwater costs vary in proportion to the level of impervious area of properties served. Capital and operating costs for all separate stormwater sewers and a portion of combined sewers and associated pump stations are allocated to the stormwater component. Customer costs vary in proportion to the number of customers served, including customer related billing and collection expense. Allocation to Cost Components Each element of cost is allocated to functional cost components on the basis of the parameter or parameters having significant influence on the magnitude of that element of cost. Items of operating expense are allocated directly to appropriate cost components, while the allocation of capital costs is based upon a detailed allocation of related capital investment. Capital investment related to combined sewers are allocated to capacity (wastewater sewers) and stormwater cost components on the basis of the relative investment of a separate sewer system serving another major city. An analysis of selected areas within this system indicates that about 30 percent of the total sewer investment is for sanitary sewers and 70 percent is for stormwater sewers. In the allocation of cost of service, operating expense and capital costs are allocated directly to cost components whenever possible. The separation of costs into functional components provides a means for distributing such costs to the various classification of cus- tomers on the basis of respective responsibilities for each particular type of service. User Class Costs of Service The costs of service are distributed to the various user classes by application of unit costs of service to respective service requirements. The fiscal year 1994 unit costs of service for each functional cost component is based on the total cost divided by the applicable units of service. The total unit costs of service applied to the respective service requirements for each customer class results in the total indicated costs of service for each user class. 29 1 t d The costs of service allocated to user classes are summarized in Table 7. Comparison of total cost of service allocated to each user class with revenue under existing rates and the indicated percentage change in the level of revenue from each class required to meet the allocated costs are shown in Table 8. The average indicated wastewater user charge increase for single family residential users is 51.0 percent and for non-residential users the average increase is 35.6 percent. Average wastewater user charges for multifamily users are expected to increase by 14.1 percent. Since most of the lower income users are believed to be part of the multifamily class, a revised rate structure may provide these users some rate relief. An overall wastewater service increase of 38.3 percent is needed for fiscal year 1994. The significant increase in stormwater user charges is due to the replacement of the stormwater related ad valorem tax, minimum base charges, and other sources of revenue by a single rate based on impervious area. Since the stormwater service revenue under existing user charges only includes the revenue from the minimum base charges, the indicated increase shown in Table 8 is much greater than the true overall revenue increase. For rate design purposes, the low income subsidies must be included in the rate base and allocated proportionately among all customer classes as shown in Table 9. This ensures that the costs of the low inc, 'me program ate proportionately absorbed by all other user classes and that revenue for operation and maintenance (including replacement) of all facilities is not reduced as a result of establishing the program. Table 9 is identical to Table 7 but includes the indicated low income subsidy in addition to the allowances for low income program administration costs previously shown in Table 7 and included as part of the total cost of service requirement. Table 7 Allocation of Cost of Service to Customer Classes Fiscal Year 1994 Line No. Cost of Service - S 1 Net O&M Expense 2 Net Replacements 3 Low Income Admin. 4 Total OM&R 5 Net Capital Costs 6 Low Income Admin. 7 Total Capital (1) (2) (3) (4) Wastewater Strength Suspended Volume Capacity Solids BOD 8,963,600 30,168,500 6,831,200 17,411,700 2,461,600 42,418,700 2,899,300 5,786,300 44,500 283,100 37,900 90,300 11,469,700 72,870,300 9,768,400 23,288,300 2,736,900 12,806,400 3?73,400 6,433,300 10,700 50,500 12,600 25,200 2,747,600 12,856,900 3,236,000 6,458,500 8 Total 14,217,300 85,727,200 13,004,400 29,746,800 9 Units of Service 10 Unit Costs - S/Unit Single Family Metered 11 Units of Service 12 Cost - $ Unmetered 13 Units of Service 14 Cost -$ Multifamily Metered 15 Units of Service 16 Cost - $ Unmetered 17 Units of Service 18 Cost - $ Non-residential 19 Units of Service 20 Cost - $ Stormwater 21 Units of Service 22 Cost - $ 23 Total Cost - $ Ccf - hundred cubic feet Csf - hundred square feet 149,615,500 643,551 157,331,053 195,716,967 Ccf Ccf/day Pounds Pounds (5) (6) (7) (8) Customer Related All Industrial Stormwater Customers Customers 17,916,300 14,457,800 83,000 32,457,100 0 0 0 Total Expense $ 3,575,400 2,379,200 87,245,900 68,023,700 13,900 9,300 562,000 3,589,300 2,388,500 155,831,600 25,200,000 99,000 0 0 25,299,000 32,457,100 3,589,300 2,388,500 181,130,600 15,911,006 843,452 27,592 Csf Services Accounts 0.09503 133.20964 0.08266 0.15199 2.03992 4.25549 86.56495 58,359,000 275,491 45,624,406 42,375,624 5,545,600 36,698,100 3,743,600 6,440,700 14,537,300 67,804 11,558,433 10,823,998 1,381,400 9,032,100 955,400 1,645,100 13,415,800 53,416 12,821,793 12,978,230 1,274,800 7,115,500 1,087,300 1,972,500 10,989,300 47,233 9,684,131 9,495,396 1,044,300 6,291,900 800,500 1,443,200 4,355,166 279,895 1,191,100 53,619,100 1,024,611 65,849 280,200 13,294,200 1,533,333 17,583 74,800 11,524,900 507,572 30,807 131,100 9,711,000 52,314,100 199,607 77,642,290 120,043,719 8,490,324 27,592 27,592 4,971,200 26,589,600 6,417,600 18,245,300 117,400 2,388,500 58,729,600 0 0 0 0 0 0 0 0 32,457,100 421,726 1,794,700 34,251,800 14,217,300 85,727,200 13,004,400 29,746,800 32,457,100 3,589,300 2,388,500 181,130,600 31 Table 8 Comparison of Revenue Under Existing User Charges With Cost of Service Fiscal Year 1994 Revenue Under Existing Allocated User Cost of Charges Service $ $ Wastewater Service Single Family Multifamily Total Residential Non—residential Total Wastewater Service 44,310,500 66,913,300 18,606,700 21,235,900 62,917,200 88,149,200 43,323,700 58,729,600 106,240, 900 146,878,800 Stormwater Service Total Stormwater Service 1,424,900 34,251,800 Total Combined Service 107,665,800 181,130,600 32 e e i Table 9 Allocation of Cost of Service and Low Income Subsidy to Customer Classes Fiscal Year 1994 (1) (2) (3) (4) (5) (6) (7) (8) Wastewater Strength Customer Related Line Suspended All Industrial Total No. Volume Capacity Solids BOD Stormwater Customers Customers Expense Cost of Service & Low Income Subsidy - S 1 Net O&M Expense 8,963,600 30,168,500 6,831,200 17,411,700 17,916,300 3,575,400 2,379,200 87,245,900 2 Net Replacements 2,461,600 42,418,700 2,899,300 5,786,300 14,457,800 68,023,700 3 Low Income Program 341,100 2,167,100 290,500 692,600 636,000 106,700 71,000 4,305,000 4 Total OM&R 11,766,300 74,754,300 10,021,000 23,890,600 33,010,100 3,682,100 2,450,200 159,574,600 5 Net Capital Costs 2,736,900 12,806,400 3,773,400 6,433,300 0 25,200,000 6 Low Income Program 82,200 384,700 96,800 193,300 757,000 7 Total Capital 2,819,100 13,191,100 3,320,200 6,626,600 0 25,957,000 8 Total 14,585,400 87,945,400 13,341,200 30,517,200 33,010,100 3,682,100 2,450,200 185,531,600 9 Units of Service 149,615,500 643,551 157,331,053 195,716,967 15,911,006 843,452 27,592 Ccf Ccf/day Pounds Pounds Csf Services Accounts 10 Unit Costs - SfUnit 0.09749 136.65646 0.08480 0.15593 2.07467 4.36551 88.80110 Single Family Metered 11 Units of Service 58,359,000 275,491 45,624,406 42,375,624 4,355,166 279,895 12 Cost - $ 5,689,100 37,647,600 3,868,400 6,606,700 1,221,700 55,033,500 Unmetered 13 Units of Service 14,537,300 67,804 11,558,433 10,823,998 1,024,611 65,849 14 Cost - $ 1,417,200 9,265,900 980,200 1,687,800 287,500 13,638,600 Multifamily Metered 15 Units of Service 13,415,800 53,416 12,821,793 12,978,230 1,533,333 17,583 16 Cost - $ 1,307,900 7,299,600 1,087,300 2,023,700 76,800 11,795,300 Unmetered 17 Units of Service 10,989,300 47,233 9,684,131 9,495,396 507,572 30,807 18 Cost - $ 1,071,300 6,454,700 821,200 1,480,600 134,500 9,962,300 Non-residential 19 Units of Service 52,314,100 199,607 77,642,290 120,043,719 8,490,324 27,592 27,592 20 Cost - $ 5,099,900 27,277,600 6,584,100 18,718,400 120,500 2,450,200 60,250,700 Stormwater 21 Units of Service 0 0 0 0 421,726 22 Cost - $ 0 0 0 0 33,010,100 1,841,100 34,851,200 23 Total Cost - $ 14,585,400 87,945,400 13,341,200 30,517,200 33,010,100 3,682,100 2,450,200 185,531,600 Ccf - hundred cubic feet Csf - hundred square feet 33 User Charge Adjustments In the development of schedules of rates for wastewater and stormwater service, a basic consideration is to establish equitable charges to customers commensurate with the cost of providing service. Costs of service are determined in proportion to the service require- ments of various classes of users. Service requirements include volume and peak flow rates of wastewater, infiltration/inflow, and stormwater; strength of wastewater; and number of customers. The best method of assessing entirely equitable rates for wastewater service would be to determine each customer's bill based upon their particular service requirements. Since this is impractical, wastewater rates are normally designed to meet average conditions for groups of customers having like or similar service requirements. Rates should be reasonably simple in application and subject to as few misinterpretations as possible. The cost of service studies previously presented are the result of engineering estimates based to some extent upon judgment and experience, and detailed results should not be used as exact answers but as guides to the necessity for rate adjustments. Practical considerations may influence the final choice of charges. Factors such as previous rate levels, the degree of adjustments indicated and policies concerning the application of rates are recognized. Existing Rates The existing wastewater user charges became effective July 1, 1992. All single family and most multifamily residential customers are charged a uniform flat rate regardless of whether or not they have metered water service. All non-residential customers and some of the larger multifamily customers are charged for wastewater service based on their annual water usage with allowances, in some cases, for any water that is not discharged to the sewer system. The rate structure for non-residential customers is composed of a quarterly base charge and a single volume charge. In addition, surcharges are applicable to non-residential customers which discharge wastewater having BOD or suspended solids strengths above normal strength limits. Normal strength domestic wastewater is currently considered to be less than 300 parts per million (ppm) for BOD and less than 350 ppm for suspended solids. Existing stormwater user charges are charged on a flat rate per dwelling unit or property basis for all customers. Stormwater related ad valorem taxes are also assessed to customers within the original service area. A summary of existing rates is shown in Table 10. The capital portion of the existing rates are the capital improvement surcharges approved by voters in 1988. 34 Table 10 Existing Rates OM&R Capital Portion Portion (a) Total $ $ $ Wastewater User Charges Residential Single Family — $/Month 8.18 2.50 10.68 Multifamily (per unit) — $/Month 6.15 1.88 8.03 Non— residential Base Charge — $/Month (b) 7.78 0.75 8.53 Volume Charge — S/Ccf 0.58 0.19 0.77 Excess Strength Surcharge — $/Ton Suspended Solids over 350 ppm 117.00 44.30 161.30 BOD over 300 ppm 195.50 65.70 261.20 COD over 600 ppm 97.75 32.85 130.60 Stormwater User Charges Single Family — $/Month 0.24 0.24 Multifamily (per unit) — S/Month 0.18 0.18 Non—residential — S/Month 0.24 0.24 OM&R — Operation, maintenance, and replacement Ccf — hundred cubic feet ppm — parts per million (a) Capital improvement surcharge. (b) Includes non—residential monitoring charges. 35 Proposed Rates The revenue requirements and costs of service allocations described in previous sections of this report provide the basis for adjusting rates. The revenue requirements show the need for adjustment and the level of revenue required. The allocations provide the unit costs of service used in the rate design process and a basis for determining whether resultant rates will reasonably recover costs of service from customer classes, as well as provide the total level of revenue required. t a 1 Residential Proposed rates for metered customers are developed by applying unit costs of service to the applicable units of service for both customer and commodity related parameters. Table 11 shows the development of base charges and volume charges for all metered customers. Residential base charges recover costs related to issuing and collecting wastewater bills, a portion of the costs related to infiltration/inflow, and other customer related costs. Volume charges recover all costs related to contributed wastewater and the remaining infiltration/inflow costs. Proposed rates for unmetered residential customers are developed in Table 12. Annual contributed wastewater volume is determined by applying the indicated unit water usages to the respective total number of rooms, water closets, baths, and separate showers. The unit cost components of the residential volume charge are applied to the estimated contributed volumes to determine the respective allocated costs. These costs divided by the respective number of billable units determine the wastewater charges to apply to the various housing attributes. Fiscal year 1994 residential user charges under the current flat rate structure are indicated to be $15.33 per month for single family residential customers and $11.50 per unit per month for multifamily residential customers. The impact of the proposed rate structure on existing residential customers will vary depending on the various housing attributes associated which each customer account. The impact of several typical single family residential customers is included in the discussion of typical bills. Non -Residential Non-residential customers which discharge normal strength wastewater will pay the same charges developed in Table 11 for residential customers plus an additional base charge to recover costs for industrial waste monitoring programs. As shown in Table 11, over $2 million or about 10 percent of the total metered customer cost is related to the operation of MSD's pretreatment and industrial monitoring programs. These costs must be incurred Table 11 Determination of Metered Wastewater User Charges Fiscal Year 1994 OM&R Capital Portion Portion (a) Total Service Related All Customers — $ 1,419,000 0 1,419,000 Customer Related I/I Volume — $ 1,723,136 412,945 2,136,082 Capacity — $ 17,433,172 3,076,248 20,509,420 Suspended Solids — $ 391,872 129,886 521,758 BOD — $ 83,453 23,148 106,601 Total CTA Customer Costs — $ 21,050,633 3,642,227 24,692,860 Total Metered Accounts 325,070 325,070 325,070 Base Charge — $/Month 5540 0093 6.33 Monitoring Costs — $ 2,450,200 0 2,450,200 Non—residential Accounts 27,592 27,592 27,592 Monitoring Charge — $/Month(") 7.40 0.00 7.40 Volume Related Volume — $ Capacity — $ Suspended Solids — $ (c) BOD — $ (c) Total Volume Costs — $ Contributed Volume — Ccf Volume Charge — $/Ccf Excess Strength Surcharges Suspended Solids — $/Ton BOD — $/Ton COD — $/Ton 8,035,764 1,925,055 9,960,818 43,958,528 7,756,852 51,715,380 6,645,664 2,201,498 8,847,162 13,196,885 3,660,376 16,857,261 71,836,841 15,543,781 87,380,622 78,209,600 78,209,600 78,209,600 0.92 0.20 1.12 127.38 244.14 122.07 OM&R — Operation, maintenance, and replacements I/I — Infiltration/Inflow CTA — common to all Ccf — hundred cubic feet (a) Capital improvement surcharge. (b) Applicable to Non—residential customers. (c) Normal domestic strength wastewater. 42.22 67.72 33.86 169.60 311.86 155.93 37 e Table 12 Determination of Unmetered Wastewater User Charges Fiscal Year 1994 Line Base Housing Attributes No. Charge Rooms Water Closets Bath Showers Total $/unit/yr 1 Annual Flow (Ccf) 5,459,200 5,085,600 3,617,300 389,900 14,552,000 Unit Charge — S/Ccf 2 OM&R 0.9185 0.9185 0.9185 0.9185 3 Capital 0.1987 0.1987 0.1987 0.1987 Allocated Cost — $ 4 OM&R 5,014,370 4,671,210 3,322,550 358,023 13,366,153 5 Capital 1,084,990 1,010,738 718,921 77,875 2,892,524 6 Total 6,099,360 5,681,948 4,041,471 435,898 16,258,677 Number of Units 7 Single Family 377,702 92,003 72,810 12,742 8 Multifamily 321,529 81,697 75,453 3,237 9 Total 699,231 173,700 148,263 15,979 Wastewater Charge — $/Unit/Mo. 10 OM&R 5.40 0.60 2.24 1.87 1.87 11 Capital (a) 0.93 0.13 0.49 0.40 0.40 12 Total 6.33 0.73 2.73 2.27 2.27 Ccf — hundred cubic feet OM&R — Operation, maintenance, and replacements (a) Capital improvement surcharge. 38 to comply with federal regulations. This level of costs significantly increases the base charges to non-residential customers. All non-residential customers that discharge wastewater in excess of normal wastewater strength limits are charged for the excess strengths by a system of excess -strength surcharges. The excess strength surcharges shown in Table 11 are equivalent to the unit costsof service developed in Table 9. Historically, the upper limits of normal strength wastewater have been considered to be 350 ppm for suspended solids, 300 ppm for BOD, and 600 ppm for chemical oxygen demand (COD). Analyses indicate that the average normal strength for suspended solids is no longer compatible with the 350 ppm maximum allowance. To put the surcharge billing threshold limits of suspended solids and BOD on equivalent bases, it is recommended that the suspended solids threshold be reduced from 350 ppm to 300 ppm. Stormwater Revised stormwater user charges are expected to be implemented on a district -wide basis beginning January 1, 1994. These charges will replace the existing schedule of flat rate charges as well as the ad valorem tax levied for stormwater purposes on all property within the original service area. The revised charges will to be based on impervious area excluding public thoroughfares. Impervious area will be based on the exterior building footprint, garage additions, and paved parking lot areas. In addition to the impervious area charge, a base charge is proposed to be added to each bill to recover billing and collection related costs. Historically, revenue from the flat rate stormwater service charges, all ad valorem tax revenue, miscellaneous income, and available Operation, Maintenance and Construction Improvement (OMCI) fund transfers have been used to meet operating expenses and the minimal replacement requirement for stormwater service. The proposed base charge and impervious area rate structure will enable discontinuance of ad valorem taxes and OMCI funds for stormwater improvements and allow the ad valorem taxes collected for administrative purposes and all miscellaneous income to be properly credited to the related expenditures. The proposed rates will also provide sufficient revenue for all needed replace- ments. However, since the proposed fiscal year 1994 rates are designed on a full year basis but will not be implemented until the middle of the fiscal year, the level of replacements previously shown in Tables 6, 7, and 9 cannot be realized. Adequacy of Proposed Rates A summary of the proposed user charges are presented in Table 13. A comparison of the fiscal year 1994 costs of service with revenues under the proposed rates, including adjustments for low income assistance, is shown in Table 14. As indicated by Table 14, 39 Table 13 Proposed Rates Fiscal Year 1994 OM&R Capital Portion Portion (a) Total(b) Wastewater User Charges Unmetered - $/Month Base Charge 5.40 0.93 6.33 Per Room 0.60 0.13 0.73 Per Water Closet 2.24 0.49 2.73 Per Bath 1.87 0.40 2.27 Per Separate Shower 1.87 0.40 2.27 Metered Base Charge - $/Month Residential 5.40 0.93 6.33 Non-residential (c) 12.80 0.93 13.73 Volume Charge - $/Ccf 0.92 0.20 1.12 Excess Strength Surcharge - $/Ton Suspended Solids over 300 ppm 127.40 42.20 169.60 BOD over 300 ppm 244.20 67.70 311.90 COD over 600 ppm 122.10 33.85 155.95 Stormwater User Charges Base Charge - $/Month Impervious Charge - $/Month/Csf 0.36 0.00 0.36 0.173 0.000 0.173 OM&R - Operation, maintenance, and replacement Ccf - hundred cubic feet Csf - hundred square feet ppm - parts per million (a) Capital improvement surcharge. (b) Rates for all users except qualified low income residential users. Charges for low income residential users are 50 percent of the charges for all other residential users. (c) Includes non-residential monitoring charge. Note: The proposed rates will replace the existing rates and the existing $0.05 per $100 assessed value stormwater tax. 40 Table 14 Comparison of Revenue Under Proposed Rates With Cost of Service Fiscal Year 1994 Net Allocated Projected Cost of Revenue(') Service $ $ Wastewater Service Single Family 68,181,900 66,913,300 Multifamily 18,545,800 21,235,900 Total Residential 86,727,700 88,149,200 Non—residential Total Wastewater Service Stormwater Service Total Stormwater Service Total Combined Service 60,356,800 58,729,600 147,084, 500 146,878,800 34,301,100 34,251,800 181,385,600 181,130,600 a) Includes subsidies for low income residential users. 41 revenues under the proposed rates will adequately recover the total costs of service, but full cost recovery by customer class cannot be achieved due to the subsidies provided low income customers. 1 Typical Bills A comparison of wastewater bills, expensed on a monthly basis, under existing and proposed wastewater user charges and capital improvement surcharges is presented in Table 15. The first four columns of this table show typical housing attribute combinations for unmetered customers. Application of the indicated housing attributes to the respective unit water usages determined the equivalent usage for each dwelling. The last three columns show the typical bills that would be levied if (1) all users continue to pay a uniform flat rate, (2) unmetered residential users are charged based on housing attributes, and (3) metered residential users are charged based on the indicated equivalent usage. The latter charge shows that unmetered and metered customers are charged on the same basis. However, a metered customer living in one of the typical dwelling units shown in Table 15 may or may not use the indicated equivalent usage billed to unmetered residential customers. The proposed unmetered residential charges are smaller than the comparable flat rate charges for smaller dwelling units and higher for the larger dwelling units. Assuming larger houses produce greater contributed wastewater discharges, costs will be recovered in a more proportionate manner. The typical bills shown in Table 15 do not include stormwater user charges. Table 16 shows a comparison of typical residential and non-residential bills for all three components based on existing and proposed rates. The cost impact on non -low income single family residential customers for providing low income assistance will average about $0.60 per month. In comparison, total savings for single family low income households will average about $9.20 per month. Increases in charges to non-residential customers as a result of the low income assistance program would range from 2 to 3 percent. Table 15 Single Family Residential Typical Bill Comparison Fiscal Year 1994 Typical Bills (a) Based on: Housing Attributes Equivalent Uniform Variable Metered R WC B S Usage Flat Rate(") Flat Rates Rate (c) Ccf/mo. $/mo. $/mo. $/mo. 3 1 1 0 6.4 15.33 1352 13.50 4 1 1 0 7.1 15.33 14.25 14.28 5 1 1 0 7.7 15.33 14.98 14.95 5 1 1 1 9.8 15.33 17.25 17.31 5 2 1 0 10.2 15.33 17.71 17.75 6 1 1 0 8.4 15.33 15.71 15.74 6 1 1 1 10.4 15.33 17.98 17.98 6 2 1 0 10.8 15.33 18.44 18.43 6 2 2 0 12.8 15.33 20.71 20.67 7 1 1 0 9.0 15.33 16.44 16.41 7 2 1 0 11.5 15.33 19.17 19.21 7 2 2 0 13.5 15.33 21.44 21.45 8 2 1 0 12.1 15.33 19.90 19.88 8 2 2 0 14.2 15.33 22.17 22.23 9 2 2 0 14.8 15.33 22.90 22.91 10 2 2 0 15.5 15.33 23.63 23.69 d R - Number of Rooms at 16 gpd or 0.65 Ccf/mo. WC - Number of Water Closets at 60 gpd or 2.44 Ccf/mo. B - Number of Baths at 50 gpd or 2.03 Ccf/mo. S - Number of Separate Showers at 50 gpd or 2.03 Ccf/mo. Ccf - hundred cubic feet gpd - gallons per day mo - month (a) Excludes stormwater user charges. (b) Assumes that current rate structure is updated and used to compute monthly charges. (c) Assumes water usage during the Best Equated Period equal to the "Equivalent Usage" for the indicated housing attributes, which may not be the case. Table 16 Alternative Rate Structure Impact on Typical Customers Updated Current Existing Method Proposed FY 1993-W FY 1994 (b) FY 1994 (0 $/mo. $/mo. $/mo. Metered Single Family Customer (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 12.76 13.68 Wastewater Capital Improvement Surcharge 2.50 2.57 2.73 Stormwater User Charge 0.24 5.87 3.15 Total 10.92 21.20 19.56 Unmetered Single Family Customer (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. Area) Wastewater User Charge 8.18 12.76 12.51 Wastewater Capital Improvement Surcharge 2.50 2.57 2.47 Stormwater User Charge 0.24 5.87 2.51 Total 10.92 21.20 17.49 Metered Multifamily Customer (4 Units, 28Ccf/Mo. and 2,073 sf Imp. Area) Wastewater User Charge 24.60 38.28 31.16 Wastewater Capital Improvement Surcharge 7.52 7.72 6.53 Stormwater User Charge 0.72 17.60 3.95 Total 32.84 63.60 41.64 Unmetered Multifamily Customer (16 Rooms, 4 Water Closets, 4 Baths and 2,055 sf Imp. Area) Wastewater User Charge 24.60 38.28 31.44 Wastewater Capital Improvement Surcharge 7.52 7.72 6.57 Stormwater User Charge 0.72 17.60 3.92 Total 32.84 63.60 41.93 Non-residential Customer (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge Wastewater Capital Improvement Surcharge Stormwater User Charge 75.64 119.56 22.98 24.33 0.24 5.87 120.44 24.33 532.70 Total 98.86 149.76 677.47 Large Surcharge Customer (271,315 Ccf, 962 Tons SS, 1,961 Tons BOD/Mo., and 789,351 sf Imp. Area) Wastewater User Charge 568,893.98 756,670.32 756,671.20 Wastewater Capital Improvement Surcharge 193,160.00 199,705.43 199,705.43 Stormwater User Charge 0.24 5.87 1,365.94 Total 762,054.22 956,381.62 957,742.57 Large Stormwater Customer (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 17,896.72 17,897.60 Wastewater Capital Improvement Surcharge 3,694.35 3,888.93 3,888.93 Stormwater User Charge 0.24 5.87 7,390.37 Total 14,977.57 21,791.52 29,176.90 Ccf - Hundred cubic feet sf - square feet (a) Based on revenue requirements of approximately $104 million. (b) Based on revenue requirements of approximately $181 million Note: These are average or typical customers. Some customers will pay more and some will pay less. 44 P Appendix A Advantages and Disadvantages of Alternative Wastewater User Charge Structures P J Appendix A Advantages and Disadvantages of Alternative Wastewater User Charge Structures Current Rate Structure Advantages: 1. Continuity of rates and charges would result in minimal change of charges between individual customers or classes of customers. 2. No implementation cost. 3. Low billing maintenance cost. 4. Recover costs equitably between residential and non-residential classes of customers. 5. Has general public acceptance. 6. Has same billing format as capital improvement surcharge. Disadvantages: 1. Charges all residential customers the same regardless of respective wastewater system loadings. 2. Does not allow individual residential customers to control total charges by controlling their respective system loading. 3. Does not encourage conservation by flat rate users. Alternative 1 - Flat Rate Per Dwelling Unit for Unmetered and Volume Rates for Metered Advantages: 1. Maintains continuity of charges to unmetered residential customers. 2. Retains relative equity of charges between residential and non-residential classes. 3. For metered residential customers, both as a class and individually, equity of charges is improved. 4. Relatively low implementation cost but will require acquisition of metered water use data and changing District's billing program for all metered residential customers. 5. Metered customers can control wastewater bill by controlling water use. 6. Encourages conservation by the metered users. 7. For metered accounts, eliminates the current assumption that multifamily wastewater loading per unit is 75 percent of single family wastewater loading. A-1 0 Disadvantages: 1. For unmetered customers, retains all the disadvantages of the current rate structure. 2. Area water utility sales could be adversely impacted if metered customers reduce water consumption to control wastewater bills.. 3. Metered water consumption by residential customers is not an exact measure of wastewater system loading. Using water consumption during the "best equated period" improves the relationship but is not a direct proportionality. 4. Almost all metered residential customers will see a change in their bills - approxi- mately one-half will have reduced charges and be happy. The other one-half will receive increased bills and be unhappy. 5. For metered customers, may be in conflict with "ability to pay" to the extent that low income families may have more than the average number of persons per household and, therefore, may use more than the average volume of water. 6. Metered and unmetered residential customers are not billed in an identical manner. 7. Creates additional administrative costs because, for certain individual customers, water use during the "best equated period" may not be representative of use throughout the year. 8. Additional billing costs are estimated to total $360,000 annually. 9. Differences in user charge/capital improvement surcharge formats increases billing costs, complicates customer bills, and may lead to customer misunderstanding and dissatisfaction. Alternative 2 - Flat Charge Per Attribute for Unmetered and Volume Rates for Metered Advantages: 1. Retains relative equity of charges between residential and non-residential. 2. For metered residential customers, has the same advantages of Alternative 1. 3. For unmetered residential customers as a class, equity of charges is improved. 4. Would increase equity among individual unmetered residential customers to the extent that wastewater system loading is proportional to the selected flat rate billing attributes. Disadvantages: 1. For metered residential customers, has the same disadvantages as Alternative 1. 2. Wastewater user bills can be expected to decrease for about one-half of all residential customers currently billed at flat rates and increase for the other one-half. The latter group will be largely unhappy and may request evidence that they are being treated more fairly. 3. Billing implementation and maintenance efforts will be greater than for Alternative 1. 4. For unmetered customers, wastewater billings can be controlled only by changing the number of billed attributes which is not practical. 5. Conflicts with "ability to pay" to the extent that low income families may live in large homes with numerous billed attributes. 6. Metered and unmetered residential customers are not billed in an identical manner. 7. Additional billing costs are estimated to total $360,000 annually. 8. Differences in user charge/capital improvement surcharge formats increases billing costs, complicates customer's bills, and may lead to customer misunderstanding and dissatisfaction. Alternative 3 - Water Meters Required for all Customers and Volume Based Charges Advantages: 1. Maintains all the advantages listed under Alternative 1 for currently metered residential customers and those advantages become available for currently unmetered customers. 2. Returns all residential customers to a single billing basis. 3. Will allow all customers to control wastewater bills by controlling water use. 4. Will provide the City of St. Louis Water Division with an improved billing basis. Disadvantages: 1. Costly to implement for currently unmetered customers and may increase their total bills. 2. Maintains all other disadvantages associated with currently metered customers as listed under Alternative 1. A-3 1 Appendix B Advantages and Disadvantages of Alternative Stormwater User Charge Structures Appendix B Advantages and Disadvantages of Alternative Stormwater User Charge Structures Current Rate Structure - Residential Charge per Dwelling Unit and Non -Residential Charge per Account Advantages: 1. Continuity of charges. 2. No implementation cost. 3. Low billing maintenance cost. 4. Simple and easy to understand. Disadvantages: 1. Generates small amount of revenue. 2. Charges do not recognize cost -causative factors such as impervious area. 3. Not equitable in that each single family property is charged the same as each non- residential property. 4. Multifamily charges are 3/4 of single family charge but are applied per dwelling unit, hence, multifamily charges are less per dwelling unit than single family but more per property than both single family and non-residential. 5. Charges only properties that are wastewater system customers. Alternative A - Residential One through Four Family Based on Sample Average Impervious Area, All Others Based on Assessors' Database or Aerial Photography Established Impervious Area Advantages: 1. Equity of charges between residential one through four family as a class and all other customers as a class. 2. Equity of charges between individual properties within the classes comprising multifamily with more than four units and non-residential. 3. Charges properties that do not have wastewater connections. 4. Increased equity permits increased charges to generate more revenue. 5. Simple and easy to understand. 6. Relatively low implementation and billing maintenance costs. B-1 Disadvantages: 1. Implementation and billing maintenance costs are greater than current rate structure. 2. Within the one through four family residential class, charges do not vary between individual customers with different impervious areas. 3. Charges for one through four family residential customers are based on averages determined from statistical samples. Alternative B - Charges for All Property Based on Actual Impervious Area from Assessors' Data or, if not Available, Aerial Photography Advantages: 1. All properties charged on same basis. 2. Improved equity, both between classes and individual customers, because all properties charged on the cost -causative factor of impervious area. 3. Improved equity can allow larger charges and additional revenue. 4. Relatively low implementation and billing maintenance costs. 5. Charges properties that do not have wastewater connections. Disadvantages: 1. For residential property, the assessors' database includes impervious area only for the residence and parking stalls or garages, requiring charges to be based on less than total impervious area. 2. Implementation and billing maintenance costs are greater than for Alternative A. Alternative C - Charges for All Property Based on Actual Impervious Area Determined from Aerial Photography and Computer Technology Advantages: 1. Same advantages as Alternative B, except implementation costs are not "relatively low." 2. Impervious area determinations are more refined, accurate, and consistent. 3. Includes all impervious area for all properties. Disadvantages: 1. Implementation costs are quite large. As a practical matter, cannot be implemented by January 1, 1994. B-2 Alternative D - Same as Alternatives B and C Except Residential One Through Four Family Charges Assessed Flat Charges for 500 to 1,000 Square Foot Blocks Advantages: 1. Reduces need for accuracy of impervious area measurements in mid -block because small changes in impervious area which do not place property in the next smaller or larger block would not alter charge. Disadvantages: 1. Increases need for accuracy near block breaks because small changes in impervious area could place property in the next smaller or larger block and alter the charge significantly. 2. Reduces equity because charges to individual residential one through four family properties would not be based totally on impervious area. For 500 square foot blocks and a rate of $0.17 per Csf per month, a property with 501 square feet and one with 999 square feet would be charged equally and approximately $1.28 per month. Without blocks, these properties would be charged, respectively, $0.85 and $1.70 per month. Alternative E - Same as Alternatives A through D Except Exempt 500 to 1,000 Square Feet of Impervious Area from Charge Advantages: 1. For a given amount of total revenue to be generated, provides reduced total charges to all properties with small impervious areas. 2. Has the same other advantages of each respective alternative except charges are less proportional to costs. 3. Provides a measure of "lifeline" considerations to the extent that low income families have smaller than average impervious areas. Disadvantages: 1. As measured by cost of service, properties with large impervious areas would subsidize properties with small impervious areas. 2. To produce the same revenue as a $0.17 per Csf per month charge to all impervious area, the charge to impervious area greater than 500 square feet per property would have to be about $0.195 per Csf per month, a 15 percent increase. 3. How a "property" is defined will impact impervious area charges. For example, should a building that is located on two subdivision lots receive one or two 500 square foot exemptions? B-3 P Appendix C Cost of Service Rate Model L File- RATES Benefits: Client- ST. LOUIS MSD Group Insurance $3,788,000 Date- 26 -Feb -93 Pension Fund $3,038,000 Project No... 19861.101 Unemployment Ins. $38,000 By KDB Hospitalization Ins. $427,450 Payroll Accruals $687,517 Test Year 1994 $7,978,967 Base Year 1993 Base + Low Income Assistance + Lemay ORS ALLOCATION OF TOTAL PERSONAL SERVICES EXPENSE Fiscal Year 1994 Line No. Department Budget Personal Allocated Personal Services Expense Services Regular Expense Salaries Benefits(a) All Other Total $ $ $ $ $ 1 Board of Trustees 110,412 0 0 110,412 110,412 2 Secretary Treasurer/ Internal Auditor 371,475 331,550 67,388 39,925 438,863 3 Civil Service Commission 273 0 0 273 273 4 Communications 281,580 180,001 36,586 101,579 318,166 5 Personnel 8,849,086 633,2% 128,719 236,823 998,838 6 Executive Director 400,101 375,936 76,410 24,165 476,511 7 Capital Imprvts. Compliance Projects 257,549 240,134 48,808 17,415 306,357 8 Finance 2,064,776 1,797,328 365,312 267,448 2,430,088 9 Information Systems 1,505,106 1,256,764 255,441 248,342 1,760,547 10 General Counsel 648,120 453,619 92,199 194,501 740,319 11 Maintenance 19,005,523 16,181,648 3,288,965 2,823,875 22,294,488 12 Wastewater 10,690,813 9,434,902 1,917,670 1,255,911 12,608,483 13 Environmental Compliance 3,650,706 1,987,967 404,060 1,662,739 4,054,766 14 Engineering 5,460,062 5,004,705 1,017,220 455,357 6,477,282 15 Construction Management 1,502,292 1,378,517 280,189 123,775 1,782,481 16 Future 0 0 0 0 0 17 Total 54,797,874 39,256,367 7,978,967 7,562,540 54,797,874 (a) Allocated based on regular salaries. Benefits consist of Group Insurance (122), Pension Fund Contributions (123), Unemployment Insurance (124), Hospitalization Insurance (125),(131), and Payroll Accruals (103),(104),(105). C-1 GENERAL FUND BUDGET, BY DEPARTMENT, BY OBJECT Fiscal Year 1994 All Other 0 & M Expense Department Personal Op. Costs Op. Costs Admin & Capital Services Mat & Sery Bldg & Plts Gen'l Exp Outlay (100) (200) (300) (400) Total (500) TOTAL $ $ $ $ $ $ $ Board of Trustees 110,412 0 0 357,736 357,736 525 468,673 Secretary Treasurer/ Internal Auditor 0 0 0 0 Bond & Insurance Premiums 0 0 1,095,152 1,095,152 0 1,095,152 All Other 438,863 0 0 77,124 77,124 6,405 522,392 Civil Service Commission 273 0 0 12,968 12,968 0 13,241 Communications 318,166 0 0 197,979 197,979 5,775 521,920 Personnel 998,838 0 0 252,001 252,001 27,300 1,278,139 Executive Director 476,511 0 0 29,191 29,191 12,600 518,302 Capital Imprvts. Compliance Projects 306,357 0 0 45,570 45,570 2,100 354,027 Finance 2,430,088 0 0 1,207,955 1,207,955 31,500 3,669,543 Information Systems 1,760,547 0 917,536 1,148,492 2,066,028 103,215 3,929,790 General Counsel 740,319 0 0 696,413 696,413 4,725 1,441,457 Maintenance 0 0 0 0 Electrical Usage 0 2,512,650 0 2,512,650 0 2,512,650 Gas Usage 0 100,320 0 100,320 0 100,320 All Other 22,294,488 6,487,215 690,480 290,693 7,468,388 7,150,500 36,913,376 Wastewater 0 0 0 0 Ash Hauling 420,000 0 0 420,000 0 420,000 Electrical Usage 0 8,041,950 0 8,041,950 0 8,041,950 Gas Usage 0 4,404,675 0 4,404,675 0 4,404,675 All Other 12,608,483 5,520,924 1,635,060 105,799 7,261,783 182,700 20,052,966 Environmental Compliance 4,054,766 145,617 61,320 81,858 288,795 462,000 4,805,561 Engineering 6,477,282 49,350 0 793,275 842,625 108,150 7,428,057 Construction Management 1,782,481 115,080 0 46,568 161,648 26,250 1,970,379 Future 0 0 0 0 0 0 0 Total 54,797,874 12,738,186 18,363,991 6,438,774 37,540,951 8,123,745 100,462,570 C-2 1 i 1 1 1 1 1 1 N 1 1 1 REPLACEMENT AND CAPITAL COSTS Fiscal Year 1994 Total Emergency Fund Accrual 1,000,000 Capital Outlay (500) 8,123,700 Replacements Major Sanitary Sewers 30,900,000 Wastewater System 16,000,000 Storm Sewers 12,000,000 Construction Sanitary Sewers 0 Storm Sewers 0 Treatment Plants 0 Consent Decree Projects Sanitary Facilities 25,200,000 Debt Service— Storm Sewers 0 C-3 MISCELLANEOUS INCOME Fiscal Year 1994 Total Ad Valorem Taxes (20 Admin.) 3,193,000 Reimb. Engr., Survey & Inspection (0MCI) 600,000 Engineering Service Fees Construction Inspection 652,000 Plan Review 279,000 Machine Tap 51,000 Connection Permit & Inspection 35,000 Construction Permits 32,000 Project Bid Fees 37,000 Engineering Prints & Specifications 14,500 Subtotal 1,100,500 e Reimbursable Maintenance Sewer Improvements Contract Agreements 19,000 1,000 Interest Income 575,000 Industrial Customers Wastewater Monitoring Pretreatment Program Permits 180,000 90,000 Subtotal 270,000 Waste Hauler Fees 385,000 Miscellaneous Income Late Charges 2,155,300 Bad Debt Expense (3,534,200) SSC Lien Interest & Fees 262,500 Miscellaneous Revenue (a) 66,000 Prior Year Available Funds 0 Subtotal (1,050,400) Total 5,093,100 (a) Includes return check charges, miscellaneous income, sale of scrap and other reimbursements. C-4 1 1 1 i 1 Line No. Item ALLOCATION OF OPERATION AND MAINTENANCE EXPENSE TO FUNCTIONAL COST COMPONENTS Fiscal Year 1994 Personal Services 1 Board of Trustees 2 Secretary Treasurer/ Internal Auditor 3 Civil Service Commission 4 Communications 5 Personnel 6 Executive Director 7 Capital Imprvts. Compliance Projects 8 Finance 9 Information Systems 10 General Counsel 11 Maintenance 12 Wastewater 13 Environmental Compliance 14 Engineering 15 Construction Management 16 Future 17 Total All Other 18 Board of Trustees Secretary Treasurer/ Internal Auditor 19 Bond & Insurance Premiums 20 All Other 21 Civil Service Commission 22 Communications 23 Personnel 24 Executive Director 25 Capital Imprvts. Compliance Projects 26 Finance 27 Information Systems 28 General Counsel 29 Maintenance Wastewater 30 Ash Hauling 31 All Other 32 Environmental Compliance 33 Engineering 34 Construction Management 35 Future 36 Total 37 Subtotal Direct Expenses 38 Total Indirect Expenses Utilities 39 Maintenance Department 40 Wastewater Department Total 110,400 438,900 300 318,200 998,800 476,500 306,400 2,430,100 1,760,500 740,300 22,294,500 12,608,500 4,054,800 6,477,300 1,782,500 0 Indirect Total $ 110,400 438,900 300 0 318,200 998,800 0 476,500 0 Direct Total $ 0 0 0 Volume $ Capacity S Suspended Solids $ BOD $ 0 306,400 306,400 1,081,400 1,348,700 1,443,600 316,900 740,300 0 O 22,294,500 14,268,500 0 12,608,500 3,404,300 1,260,900 2,269,500 5,673,800 0 4,054,800 0 6,477,300 3,821,600 O 1,782,500 855,600 0 0 Storm Water $ 8,026,000 40,500 40,500 1,743,600 2,655,700 926,900 All ('lstomets $ 318,200 1,348,700 316,900 Industrial ustomen 2,230,20( 54,798,000 5,290,200 49,507,800 3,404,300 20,513,000 2,310,000 5,714,300 13,352,200 1,983,800 2,230,20( 357,700 357,700 1,095,200 77,100 13,000 198,000 252,000 29,200 45,600 1,208,000 2,066,000 696,400 7,468,400 420,000 7,261,800 288,800 842,600 161,600 0 0 1,095,200 0 77,100 0 13,000 0 O 198,000 252,000 29,200 0 0 0 45,600 537,600 670,400 1,694,100 371,900 696,400 0 O 7,468,400 0 420,000 0 7,261,800 0 288,800 0 842,600 0 161,600 0 0 45,600 4,779,800 1,161,900 653,600 497,100 77,600 2,688,600 420,000 2,033,300 3,413,000 2,900 2,900 124,200 345,500 84,000 198,000 670,400 371,900 0 0 0 0 0 0 0 158,800 0 0 22,481,400 4,752,300 17,729,100 1,161,900 6,053,700 2,456,200 3,415,900 3,242,300 1,240,300 158,800 67,236,900 4,566,200 26,566,700 4,766,200 9,130,200 16,594,500 3,224,100 2,389,000 10,042,500 10,042,500 682,000 3,968,000 711,900 1,363,700 2,478,600 481,600 356,700 2,613,000 2,613,000 1,045,200 914,600 12,446,600 12,446,600 2,862,700 373,400 1,742,500 7,468,000 41 Total 15,059,600 42 Total O&M Expense 653,200 15,059,600 3,907,900 1,288,000 1,742,500 7,468,000 653,200 0 0 0 92,339,000 92,339,000 9,156,100 31,822,700 7,220,600 17,961,900 19,726,300 3,705,700 2,745,700 Less Costs Met From Other Revenue 43 Ad Valorem Tax Revenue t') 3,193,000 44 Transfers from OMCI Funds 600,000 45 Engineering Service Fees 1,100,500 Reimbursement of Maintenance Expense 46 Sewer Improvements 19,000 47 Contract Agreements 1,000 48 Interest Income 575,000 49 Industrial Customers 270,000 50 Waste Haulers 385,000 51 Miscellaneous Income (1,050,400) 52 Total 5,093,100 53 Net O&M Expense 87,245,900 (a) Applied to allocated Indirect Expenses. 3,193,000 216,800 1,261,600 226,300 433,600 788,100 153,100 113,500 600,000 600,000 0 1,100,500 561,300 539,200 0 19,000 1,000 575,000 270,000 385,000 7,700 (1,050,400) (71,300) (415,000) 5,093,100 192,500 1,654,200 389,400 550,200 1,810,000 130,300 366,500 87,245,900 8,963,600 30,168,500 6,831,200 17,411,700 17,916,300 3,575,400 2,379,200 19,000 300 100 39,000 227,200 400 40,800 0 200 0 78,100 141,900 27,600 20,400 270,000 196,400 180,900 (74,500) (142,600) (259,200) (50,400) (37,400) C-5 ALLOCATION OF OPERATION AND MAINTENANCE EXPENSE TO FUNCTIONAL COST COMPONENTS Fiscal Year 1994 Direct Line Indirect Suspended Storm All Industrial No. Item Total Total Total Volume Capacity Solids BOD Water Customers Customer % % % % % % % % % % Personal Services 1 Board of Trustees 100.00% 100.00% 0.00% 2 Secretary Treasurer/ Internal Auditor 100.00% 100.00% 0.00% 3 Civil Service Commission 100.00% 100.00% 0.00% 4 Communications 100.00% 100.00% 100.00% 5 Personnel 100.00% 100.00% 0.00% 6 Executive Director 100.00% 100.00% 0.00% 7 Capital Imprvts. Compliance Projects 100.00% 100.00% 100.00% 8 Finance 100.00% 44.50% 55.50% 55.50% 9 Information Systems 100.00% 82.00% 18.00% 18.00% 10 General Counsel 100.00% 100.00% 0.00% 11 Maintenance 100.00% 100.00% 64.00% 36.00% 12 Wastewater 100.00% 100.00% 27.00% 10.00% 18.00% 45.00% 13 Environmental Compliance 100.00% 100.00% 1.00% 1.00% 43.00% 55.00% 14 Engineering 100.00% 100.00% 59.00% 41.00% 15 Construction Management 100.00% 100.00% 48.00% 52.00% 16 Future 0.00% 0.00% 17 Average 100.00% 9.65% 90.35% 6.21% 37.43% 4.22% 10.43% 24.37% 3.62% 4.07% All Other 18 Board of Trustees 100.00% 100.00% 0.00% Secretary Treasurer/ Internal Auditor 19 Bond & Insurance Premiums 100.00% 100.00% 0.00% 20 All Other 100.00% 100.00% 0.00% 21 Civil Service Commission 100.00% 100.00% 0.00% 22 Communications 100.00% 100.00% 100.00% 23 Personnel 100.00% 100.00% 0.00% 24 Executive Director 100.00% 100.00% 0.00% 25 Capital Imprvts. Compliance Projects 100.00% 100.00% 100.00% 26 Finance 100.00% 44.50% 55.50% 55.50% 27 Information Systems 100.00% 82.00% 18.00% 18.00% 28 General Counsel 100.00% 100.00% 0.00% 29 Maintenance 100.00% 100.00% 64.00% 36.00% Wastewater 30 Ash Hauling 100.00% 100.00% 100.00% 31 All Other 100.00% 100.00% 16.00% 9.00% 28.00% 47.00% 32 Environmental Compliance 100.00% 100.00% 1.00% 1.00% 43.00% 55.00% 33 Engineering 100.00% 100.00% 59.00% 41.00% 34 Construction Management 100.00% 100.00% 48.00% 52.00% 35 Future 0.00% 0.00% 36 Average 100.00% 21.14% 78.86% 5.17% 26.93% 10.93% 15.19% 14.42% 5.52% 0.71% 37 Subtotal Direct Expenses 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.55% 38 Total Indirect Expenses 100.00% 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.55% Utilities 39 Maintenance Department 100.00% 40 Wastewater Department 100.00% 41 Average 100.00% 42 Total O&M Expense 100.00% Less Costs Met From Other Revenue 43 Ad Valorem Tax Revenue "' 100.00% 44 Transfers from OMCI Funds 100.00% 45 Engineering Service Fees 100.00% Reimbursement of Maintenance Expense 46 Sewer Improvements 100.00% 47 Contract Agreements 100.00% 48 Interest Income 100.00% 49 Industrial Customers 100.00% 50 Waste Haulers 100.00% 51 Miscellaneous Income 100.00% 52 Average 100.00% 53 Net O&M Expense 100.00% (a) Applied to allocated Indirect Expenses. 100.00% 40.00% 35.00% 25.00% 100.00% 23.00% 3.00% 14.00% 60.00% 100.00% 25.95% 8.55% 11.57% 49.59% 4.34% 0.00% 0.00% 100.00% 9.92% 34.46% 7.82% 19.45% 21.36% 4.01% 2.97% 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.55% 100.00% 100.00% 100.00% 51.00% 49.00% 100.00% 100.00% 100.00% 25.00% 11.00% 40.00% 24.00% 100.00% 6.78% 39.51% 7.10% 13.58% 24.68% 4.80% 3.55% 100.00% 100.00% 100.00% 2.00% 51.00% 47.00% 100.00% 6.79% 39.51% 7.09% 13.58% 24.68% 4.80% 3.55% 100.00% 3.78% 32.48% 7.65% 10.80% 35.54% 2.56% 7.20% 100.00% 10.27% 34.58% 7.83% 19.96% 20.54% 4.10% 2.73% C-6 ALLOCATION OF ESTIMATED PLANT INVESTMENT, REPLACEMENTS,AND OTHER CAPITAL COSTS TO FUNCTIONAL COST COMPONENTS Fiscal Year 1994 1 Line No. Item Collection System 1 Sanitary Sewers 2 Storm Sewers 3 Combined Sewers 4 Pumping Stations 5 Total Collection System Treatment Facilities 6 Raw Wastewater Pumping 7 Preliminary Treatment 8 Primary Sedimentation 9 Aeration/Reaeration/Nitrification 10 Secondary Sedimentation 11 Recirculation Pumping 12 Chlorination 13 Lagoons & Aeration Equipment 14 Sludge Treatment 15 Vacuum Filtration 16 Incineration 17 By Pass & Outfall Works 18 Administrative & General 19 Total Treatment Facilities 20 Subtotal Estimated Plant investment 21 General Plant 22 Total Estimated Plant Investment Replacements 23 Emergency Fund Accrual 24 Capital Outlay 25 Major Sanitary Sewer Replacements 26 Wastewater System Replacements 27 Storm Sewer Replacements 28 Total Replacements Other Capital 29 Sanitary Sewer Construction 30 Sanitary Facilities— Consent Decree 31 Treatment Plant Construction 32 Storm Sewer Construction 33 Storm Sewer Debt Service 34 Total Other Capital Costs (1) Total 373,400,000 197,125,000 135,780,000 81,213,000 787,518,000 7,638,000 28,837,000 11,377,000 104,432,000 63,256,000 1,832,000 3,995,000 9,691,000 130,634,000 908,000 63,984,000 19,615,000 112,001,000 558,200,000 1,345,718,000 34,078,000 1,379,796,000 1,000,000 8,123,700 30,900,000 16,000,000 12,000,000 (2) (3) Volume 11,377,000 63,256,000 1,832,000 3,995,000 Capacity 373,400,000 40,734,000 10,871,578 425,005,578 7,638,000 28,837,000 (4) (5) Suspended Solids BOD $ $ 65,317,000 454,000 31,992,000 19,615,000 26,321,355 18,561,926 28,001,370 106,781,355 74,651,926 125,764,370 106,781,355 499,657,504 125,764,370 2,704,055 12,652,969 3,184,767 109,485,410 512,310,473 128,949,137 79,300 644,600 1,737,700 104,432,000 9,691,000 65,317,000 454,000 31,992,000 39,116,349 251,002,349 251,002,349 6,356,204 257,358,553 (6) Storm Water 197,125,000 95,046,000 70,341,422 362,512,422 362,512,422 9,180,005 371,692,427 371,300 93,500 186,500 269,400 3,016,300 759,200 1,515,200 2,188,400 30,900,000 8,131,100 2,046,600 4,084,600 12,000,000 68,023,700 2,461,600 42,418,700 2,899,300 5,786,300 14,457,800 0 25,200,000 0 0 0 0 2,736,900 12,806,400 0 0 3,223,400 6,433,300 0 0 25,200,000 2,736,900 12,806,400 3,223,400 6,433,300 0 0 0 C- 7 Table 6 Total Cost of Service Fiscal Year 1994 1 1 e e Line No. Revenue Requirements 1 O&M Expense 2 Emergency Fund Accrual 3 Capital Outlay 4 Major Sewer Replacements 5 Wastewater System Replacements 6 Storm Sewer Replacements 7 Consent Decree Projects 8 Low Income Program 9 Total Revenue Requirements Met from 10 Administrative Tax Revenue 11 OMCI Fund Transfers 12 Engineering Service Fees 13 Reimbursement of Maint. Expense 14 Miscellaneous Income 15 Interest Income 16 Ind. permits & Sampling Charges 17 Waste Hauler Fees 18 Total 19 Net Cost of Service to be Met from User Charges San. O&M (37.5%) Operating Expense Replacements $ $ 92,339,000 562,000 1,000,000 8,123,700 30,900,000 16,000,000 12,000,000 Capital 25,200,000 99,000 Total 92,339,000 1,000,000 8,123,700 30,900,000 16,000,000 12,000,000 25,200,000 661,000 92,901,000 68,023,700 25,299,000 186,223,700 Other Sources 3,193,000 600,000 1,100,500 20,000 (1,050,400) 575,000 270,000 385,000 5,093,100 0 3,193,000 600,000 1,100,500 20,000 (1,050,400) 575,000 270,000 385,000 0 5,093,100 87,807,900 68,023,700 25,299,000 181,130,600 Total Cost of Service San. — Sanitary SW — Stormwater San. Repl. (29.6%) SW Repl. (8.0%) CIS (14.0%) SW O&M (10.9%) O&M — Operation & Maintenance Expense Repl. — Replacements CIS — Capital Improvement Surcharge C-8 1 UNITS OF SERVICE INPUTS Infiltration/Inflow as a percent of Influent Flow 38.00% Percent of Total I/I Allocated to Stormwater 0.00% Percent of I/I to be Recovered by Wastewater Charges... 38.00% Allocation of Infiltration/Inflow: Customer Related.... 50.0% Volume Related 50.0% Capacity Factors Contributed 1.0 I/I 2.5 Residential Single Family Multifamily - 1 Unit Duplexes Triplexes Fourplex Multifamily Large Multifamily Subtotal Multifamily Total Residential Non- residential Total Average Contributed Wastewater Strengths Suspended Solids.... 200 ppm BOD 220 ppm Average Infiltration/Inflow Wastewater Strengths Suspended Solids.... 45 ppm BOD 5 ppm STORMWATER IMPERVIOUS AREA Wastewater Actual FY 1993 Accounts Stormwater Projected Actual Projected Growth TY 1994 Aug. 1992 TY 1994 Area Per Accounts Accounts Accounts Account Csf 343,302 345,744 343,302 345,744 15.56 8,713 8,765 8,713 8,765 15.56 25,627 25,780 25,627 25,780 15.77 1,170 1,177 1,170 1,177 15.21 6,664 6,704 6,664 6,704 20.61 5,928 5,964 5,928 5,964 225.00 48,102 48,390 48,102 48,390 42.18 391,404 394,134 391,404 394,134 18.83 1991 Comercial Area Csf Test Year Impervious Area Csf 5,379,777 136,383 406,551 17,902 138,169 1,341,900 2,040,905 7,420,682 27,214 27,592 27,214 27,592 225.00 8,483,882 8,490,324 418,618 421,726 418,618 421,726 BILLABLE SURCHARGE LOADINGS Non-residential Customers System Total Anheuser-Busch Adjustments Adjusted Total Billable Suspended Billable Solids BOD COD * BOD * pounds pounds pounds pounds 25,600,000 62,400,000 8,400,000 66,600,000 * 1/2 of COD added to Billable BOD 0 0 0 0 25,600,000 66,600,000 Adjustments for Anheuser-Busch Solids BOD VOLUME 1994 0 0 0 1995 0 0 0 1996 0 0 0 1997 0 0 0 1998 0 0 0 1999 0 0 0 Test Year (1994) 0 0 0 8,483,882 15,911,006 C-9 e s 1 h Line No. Metered Accounts 1 St. Louis City 2 St. Louis County 3 Florissant 4 Kirkwood 5 Valley Park 6 Webster Groves 7 Wells 8 Total Metered 9 Flat Rate Accounts 10 Total Line No. Customer Accounts Summary Fiscal Year 1994 Single Family 248,318 13,991 8,860 849 7,871 6 Multifamily Large Non- Multifamily (1-4 Units) Multifamily residential Total Units 0 380 13,170 3,115 81 255 110 224 0 141 11 96 10,635 15,363 506 552 127 409 279,895 13,871 3,712 27,592 11,015 0 279,966 63,760 14,674 310 9,777 1,529 1,200 350 8,432 663 6 325,070 66,612 65,849 30,807 96,656 90,316 345,744 44,678 3,712 27,592 421,726 156,928 Estimated Contributed Wastewater Volume for Unmetered Customers Fiscal Year 1994 Number of Billable Units 1 Single Family 2 Multifamily 3 Total 4 Unit Wastewater Flow (gpd) Annual Flow (Cct) 5 Single Family 6 Multifamily Water Rooms Closets Bath Showers Total 377,702 92,003 72,810 12,742 321,529 81,697 75,453 3,237 699,231 173,700 148,263 15,979 16 60 50 50 2,948,900 2,693,700 1,776,400 310,900 7,729,900 2,510,300 2,391,900 1,840,900 79,000 6,822,100 7 Total 5,459,200 5,085,600 3,617,300 389,900 14,552,000 C- 10 Metered Water Usage Fiscal Year 1994 Line No. Single Multifamily Large Non— Annualized Water Provider Family (1-4 Units) Multifamily residential Total Ccf/qtr Ccf/qtr Ccf/yr Ccf/yr Ccf/yr 1 St. Louis City 0 0 1,584,200 19,930,900 21,515,100 2 St. Louis County 6,704,586 1,275,200 2,342,000 17,587,200 51,848,344 3 Florissant 377,757 6,200 38,500 233,500 1,807,828 4 Kirkwood 239,220 30,580 59,300 401,700 1,540,200 5 Valley Park 22,923 7,000 175,800 295,492 6 Webster Groves 212,517 13,260 8,700 290,100 1,201,908 7 Wells 162 0 0 648 8 Total Winter Quarter 7,557,165 1,332,240 9 Annualized Total 30,228,660 5,328,960 4,032,700 38,619,200 78,209,520 Table 5 Allocation of Infiltration/Inflow Fiscal Year 1994 Estimated Line No. of Contributed Infiltration/Inflow No. Customer Class Accounts Volume Customer Volume Total Ccf Ccf Ccf Ccf Wastewater Service Single Family 1 Metered 279,895 30,228,700 18,866,600 9,263,700 28,130,300 2 Unmetered 65,849 7,729,900 4,438,600 2,368,800 6,807,400 Multifamily 3 Metered 17,583 9,361,700 1,185,200 2,868,900 4,054,100 4 Unmetered 30,807 6,822,100 2,076,600 2,090,600 4,167,200 5 Total Residential 394,134 54,142,400 26,567,000 16,592,000 43,159,000 6 Non—residential 27,592 38,619,200 1,859,900 11,835,000 13,694,900 7 Total 421,726 92,761,600 28,426,900 28,427,000 56,853,900 Ccf — hundred cubic feet C.11 Table 4 Units of Service Fiscal Year 1994 Line No. Single Family Metered 1 Contributed 2 Infiltration/Inflow 3 Total Unmetered 4 Contributed 5 Infiltration/Inflow 6 (1) (2) (3) (4) Wastewater Strength Suspended Volume Capacity Solids BOD Ccf Ccf/day pounds pounds 30,228,700 82,818 37,725,418 41,497,959 28,130,300 192,673 7,898,988 877,665 58,359,000 275,491 45,624,406 42,375,624 4,355,166 279,895 (5) (6) (7) Customer Related All Industrial Stormwater Customers Customers Csf Services Accounts 7,729,900 21,178 9,646,915 6,807,400 46,626 1,911,518 Total 14,537,300 67,804 11,558,433 Multifamily Metered 7 Contributed 8 Infiltration/Inflow 9 Total Unmetered 10 Contributed 11 Infiltration/Inflow 12 10,611,607 212,391 10,823,998 1,024,611 65,849 9,361,700 25,648 11,683,402 12,851,742 4,054,100 27,768 1,138,391 126,488 13,415,800 53,416 12,821,793 12,978,230 1,533,333 17,583 6,822,100 18,691 8,513,981 9,365,379 4,167,200 28,542 1,170,150 130,017 Total 10,989,300 47,233 9,684,131 9,495,3% Non-residential 13 Contributed 14 Infiltration/Inflow 15 Surcharge 16 Total Stormwater 17 Infiltration/Inflow Total 18 Contributed 19 Infiltration/Inflow 20 Total Ccf - hundred cubic feet Csf - hundred square feet 38,619,200 105,806 48,196,762 53,016,438 13,694,900 93,801 3,845,528 427,281 25,600,000 66,600,000 507,572 30,807 52,314,100 199,607 77,642,290 120,043,719 8,490,324 0 0 0 0 92,761,600 254,141 141,366,478 193,943,125 56,853,900 389,410 15,%4,575 1,773,842 27,592 27,592 421,726 149,615,500 643,551 157,331,053 195,716,967 15,911,006 843,452 27,592 C-12 Table 7 Allocation of Cost of Service to Customer Classes Fiscal Year 1994 t r Line No. Cost of Service - $ 1 Net O&M Expense 2 Net Replacements 3 Low Income Admin. 4 Total OM&R 5 Net Capital Costs 6 Low Income Admin. 7 Total Capital 8 Total 9 Units of Service 10 Unit Costs - $/Unit Single Family Metered 11 Units of Service 12 Cost - $ Unmetered 13 Units of Service 14 Cost -$ Multifamily Metered 15 Units of Service 16 Cost - $ Unmetered 17 Units of Service 18 Cost - $ Non -residential 19 Units of Service 20 Cost - $ Stormwater 21 Units of Service 22 Cost - $ 23 Total Cost - $ Ccf - hundred cubic feet Csf - hundred square feet (1) (2) (3) (4) (5) (6) (7) (8) Wastewater Strength Customer Related Suspended All Industrial Total Volume Capacity Solids BOD Stormwater Customers Customers Expense $ 8,963,600 30,168,500 6,831,200 17,411,700 17,916,300 3,575,400 2,379,200 87,245,900 2,461,600 42,418,700 2,899,300 5,786,300 14,457,800 68,023,700 44,500 283,100 37,900 90,300 83,000 13,900 9,300 562,000 11,469,700 72,870,300 9,768,400 23,288,300 32,457,100 3,589,300 2,388,500 155,831,600 2,736,900 12,806;400 3,223,400 6,433,300 0 25,200,000 10,700 50,500 12,600 25,200 0 99,000 2,747,600 12,856,900 3,236,000 6,458,500 0 0 0 25,299,000 14,217,300 85,727,200 13,004,400 29,746,800 32,457,100 3,589,300 2,388,500 181,130,600 149,615,500 643,551 157,331,053 195,716,967 15,911,006 843,452 27,592 Ccf Ccf/day Pounds Pounds Csf Services Accounts 0.09503 133.20964 0.08266 0.15199 2.03992 4.25549 86.56495 58,359,000 275,491 45,624,406 42,375,624 4,355,166 279,895 5,545,600 36,698,100 3,743,600 6,440,700 1,191,100 14,537,300 67,804 11,558,433 10,823,998 1,024,611 65,849 1,381,400 9,032,100 955,400 1,645,100 280,200 13,415,800 53,416 12,821,793 12,978,230 1,533,333 17,583 1,274,800 7,115,500 1,087,300 1,972,500 74,800 10,989,300 47,233 9,684,131 9,495,3% 507,572 30,807 1,044,300 6,291,900 800,500 1,443,200 131,100 52,314,100 199,607 77,642,290 120,043,719 8,490,324 27,592 4,971,200 26,589,600 6,417,600 18,245,300 117,400 0 0 0 0 421,726 0 0 0 0 32,457,100 1,794,700 53,619,100 13,294,200 11,524,900 9,711,000 27,592 2,388,500 58,729,600 34,251,800 14,217,300 85,727,200 13,004,400 29,746,800 32,457,100 3,589,300 2,388,500 181,130,600 C-13 I I I I I I I I I I I I Customer Class Estimated Low Income Assistance Credit - 50% Assistance Units Wastewater Stormwater Capital Wastewater Stormwater Capital $/Unit S/Unit $/Unit $ $ $ Updated Rate Structure Wastewater / CIS Single Family Metered 4,154 6.38 1.29 318,030 64,055 Unmetered 5,267 6.38 1.29 403,242 81,217 Multifamily Metered 4,154 4.79 0.96 238,523 48,041 Unmetered 22,382 4.79 0.96 1,285,174 258,848 Large Multifamily Service Related 25,372 0.00 0.00 0 0 Volume Related 2,055,132 0.46 0.10 945,361 205,513 Stormwater Service Related 35,957 0.18 77,667 Single Family 146,591 0.087 152,161 Multifamily 159,216 0.087 165,266 Large Multifamily 152,232 0.087 158,017 Total 3,190,330 553,111 657,674 Total Rate Subsidy (Rounded) Administration Costs 15.0% 4,401,000 3,190,000 553,000 658,000 661,000 479,000 83,000 99,000 USE S5,062,000 3,669,000 636,000 757,000 C-14 Table 9 Allocation of Cost of Service and Low Income Subsidy to Customer Classes Fiscal Year 1994 (1) (2) (3) (4) (5) (6) (7) (8) Wastewater Strength Customer Related Line Suspended All Industrial Total No. Volume Capacity Solids BOD Stormwater Customers Customers Expense Cost of Service & Low Income Subsidy - $ 1 Net O&M Expense 8,963,600 30,168,500 6,831,200 17,411,700 17,916,300 3,575,400 2,379,200 87,245,900 2 Net Replacements 2,461,600 42,418,700 2,899,300 5,786,300 14,457,800 68,023,700 3 Low Income Program 341,100 2,167,100 290,500 692,600 636,000 106,700 71,000 4,305,000 4 Total OM&R 11,766,300 74,754,300 10,021,000 23,890,600 33,010,100 3,682,100 2,450,200 159,574,600 5 Net Capital Costs 2,736,900 12,806,400 3,223,400 6,433,300 0 25,200,000 6 Low Income Program 82,200 384,700 96,800 193,300 757,000 7 Total Capital 2,819,100 13,191,100 3,320,200 6,626,600 0 25,957,000 8 Total 14,585,400 87,945,400 13,341,200 30,517,200 33,010,100 3,682,100 2,450,200 185,531,600 9 Units of Service 149,615,500 643,551 157,331,053 195,716,967 15,911,006 843,452 27,592 Ccf Ccf/day Pounds Pounds Csf Services Accounts 10 Unit Costs - $/Unit 0.09749 136.65646 0.08480 0.15593 2.07467 4.36551 88.80110 Single Family Metered 11 Units of Service 58,359,000 275,491 45,624,406 42,375,624 4,355,166 279,895 12 Cost - $ 5,689,100 37,647,600 3,868,400 6,606,700 1,221,700 55,033,500 Unmetered 13 Units of Service 14,537,300 67,804 11,558,433 10,823,998 1,024,611 65,849 14 Cost - $ 1,417,200 9,265,900 980,200 1,687,800 287,500 13,638,600 Multifamily Metered 15 Units of Service 13,415,800 53,416 12,821,793 12,978,230 1,533,333 17,583 16 Cost - $ 1,307,900 7,299,600 1,087,300 2,023,700 76,800 11,795,300 Unmetered 17 Units of Service 10,989,300 47,233 9,684,131 9,495,396 507,572 30,807 18 Cost - $ 1,071,300 6,454,700 821,200 1,480,600 134,500 9,962,300 Non-residential 19 Units of Service 52,314,100 199,607 77,642,290 120,043,719 8,490,324 27,592 27,592 20 Cost - $ 5,099,900 27,277,600 6,584,100 18,718,400 120,500 2,450,200 60,250,700 Stormwater 21 Units of Service 0 0 0 0 421,726 22 Cost - $ 0 0 0 0 33,010,100 1,841,100 34,851,200 23 Total Cost - $ 14,585,400 87,945,400 13,341,200 30,517,200 33,010,100 3,682,100 2,450,200 185,531,600 Ccf - hundred cubic feet Csf - hundred square feet C-15 Allocation of Cost of Service and Low Income Subsidy to Customer Classes Summarized by OM&R and Capital Costs Fiscal Year 1994 (1) (2) (3) (4) (5) (6) (7) (8) Wastewater Strength Customer Related Total Line Suspended All Industrial Allocated No. Volume Capacity Solids BOD Stormwater Customers Customers Cost $ t t e Unit Costs — S/Unit 1 OM&R Unit Costs 0.07864 116.15909 0.06369 0.12207 2.07467 4.36551 88.80110 2 Capital Unit Costs 0.01885 20.49737 0.02111 0.03386 0.00000 0.00000 0.00000 Allocated Costs — $ Single Family — Metered 3 OM&R 4,589,900 32,000,700 2,906,400 5,172,200 1,221,700 45,890,900 4 Capital 1,099,200 5,646,900 962,000 1,434,500 9,142,600 Single Family — Unmetered 5 OM&R 1,143,200 7,876;100 736,200 1,321,300 287,500 11,364,300 6 Capital 274,000 1,389,800 244,000 366,500 2,274,300 Multifamily — Metered 7 OM&R 1,055,000 6,204,800 816,600 1,584,300 76,800 9,737,500 8 Capital 252,900 1,094,800 270,700 439,400 2,057,800 Multifamily — Unmetered 9 OM&R 864,200 5,486,500 616,800 1,159,100 134,500 8,261,100 10 Capital 207,100 968,200 204,400 321,500 1,701,200 Non—residential 11 OM&R 4,114,000 23,186,200 4,945,000 14,653,700 120,500 2,450,200 49,469,600 12 Capital 985,900 4,091,400 1,639,100 4,064,700 0 10,781,100 Stormwater 13 OM&R 0 0 0 0 33,010,100 1,841,100 34,851,200 14 Capital 0 0 0 0 0 Total 15 OM&R 11,766,300 74,754,300 10,021,000 23,890,600 33,010,100 3,682,100 2,450,200 159,574,600 16 Capital 2,819,100 13,191,100 3,320,200 6,626,600 0 0 25,957,000 17 Total Cost 14,585,400 87,945,400 13,341,200 30,517,200 33,010,100 3,682,100 2,450,200 185,531,600 C-16 Table 8 Comparison of Revenue Under Existing User Charges With Cost of Service Fiscal Year 1994 Revenue Under Existing Allocated User Cost of Charges Service $ S Wastewater Service Single Family Multifamily Total Residential Non—residential Total Wastewater Service 44,310,500 66,913,300 18,606,700 21,235,900 62,917,200 88,149,200 43,323,700 58,729,600 106, 240, 900 146, 878, 800 Stormwater Service Total Stormwater Service 1,424,900 34,251,800 Total Combined Service 107,665,800 181,130,600 i 1 1 1 1 Table 10 Existing Rates OM&R Capital Portion Portion (a) Total $ $ $ Wastewater User Charges Residential Single Family — S/Month 8.18 2.50 10.68 Multifamily (per unit) — S/Month 6.15 1.88 8.03 Non—residential Base Charge — $/Month (b) 7.78 0.75 8.53 Volume Charge — $/Ccf 0.58 0.19 0.77 Excess Strength Surcharge — $/ on Suspended Solids over 350 ppm BOD over 300 ppm COD over 600 ppm 117.00 195.50 97.75 44.30 65.70 32.85 161.30 261.20 130.60 Stormwater User Charges Single Family — $/Month 0.24 0.24 Multifamily (per unit) — S/Month 0.18 0.18 Non—residential — $/Month 0.24 0.24 OM&R — Operation, maintenance, and replacement Ccf — hundred cubic feet ppm — parts per million (a) Capital improvement surcharge. (b) Includes non—residential monitoring charges. C-18 Table 11 Determination of Metered Wastewater User Charges Fiscal Year 1994 OM&R Capital Portion Portion (a) Total Service Related All Customers - $ 1,419,000 0 1,419,000 Customer Related I/I Volume - S 1,723,136 412,945 2,136,082 Capacity - $ 17,433,172 3,076,248 20,509,420 Suspended Solids - S 391,872 129,886 521,758 BOD - S 83,453 23,148 106,601 Total CTA Customer Costs - S 21,050,633 3,642,227 24,692,860 Total Metered Accounts 325,070 325,070 325,070 Base Charge - S/Month 5.40 093 6.33 Monitoring Costs - $ 2,450,200 0 2,450,200 Non-residential Accounts 27,592 27,592 27,592 Monitoring Charge - $/Month(b) 7.40 0000 7740 0 t e Volume Related Volume - $ Capacity - $ Suspended Solids - $ (C) BOD - $(c) Total Volume Costs - $ Contributed Volume - Ccf Volume Charge - $/Ccf Excess Strength Surcharges Suspended Solids - $/Ton BOD - $/Ton COD - Won 8,035,764 1,925,055 9,960,818 43,958,528 7,756,852 51,715,380 6,645,664 2,201,498 8,847,162 13,196,885 3,660,376 16,857,261 71,836,841 15,543, 781 87,380, 622 78,209,600 78,209,600 78,209,600 0.92 0.20 1.12 127.38 244.14 122.07 42.22 67.72 33.86 169.60 311.86 155.93 UNMETERED Service Related All Customers - $ 422,000 0 422,000 Customer Related I/I Volume - $ 512,355 122,785 635,140 Capacity - $ 5,183,560 914,688 6,098,248 Suspended Solids - S 116,519 38,620 155,139 BOD - $ 24,814 6,883 31,697 Total Customer Related Costs - S 6,259,247 1,082,976 7,342,223 Total Unmetered Accounts 96,656 96,656 96,656 Residential Base Charge - S/Mo. 5.40 0.93 6.33 Other Costs Volume - $ 1,495,045 358,315 1,853,360 Capacity - $ 8,179,040 1,443,312 9,622,352 Suspended Solids - S 1,236,481 409,780 1,646,261 BOD - S 2,455,586 681,117 3,136,703 Total Other Costs - $ 13,366,153 2,892,524 16,258,677 Total Unmetered Costs - $ 19,625,400 3,975,500 23,600,900 (a) Capital improvement surcharge. (b) Applicable to Non-residential customers. (c) Normal domestic strength wastewater. C-19 Table 12 Determination of Unmetered Wastewater User Charges Fiscal Year 1994 Line Base Housing Attributes No. Charge Rooms Water Closets Bath Showers Total S/unit/yr r 1 Annual Flow (Ccf) 5,459,200 5,085,600 3,617,300 389,900 14,552,000 Unit Charge — $/Ccf 2 OM&R 0.9185 0.9185 0.9185 0.9185 3 Capital 0.1987 0.1987 0.1987 0.1987 Allocated Cost — $ 4 OM&R 5,014,370 4,671,210 3,322,550 358,023 13,366,153 5 Capital 1,084,990 1,010,738 718,921 77,875 2,892,524 6 Total 6,099,360 5,681,948 4,041,471 435,898 16,258,677 Number of Units 7 Single Family 377,702 92,003 72,810 12,742 8 Multifamily 321,529 81,697 75,453 3,237 9 Total 699,231 173,700 148,263 15,979 Wastewater Charge — $/Unit/Mo. 10 OM&R 5.40 0.60 2.24 1.87 1.87 11 Capital (a) 0.93 0.13 0.49 0.40 0.40 12 Total 6.33 0.73 2.73 2.27 2.27 C-20 Alternative Rates OM&R Portion Capital Portion No Low Low Income Program No Low Low Income Program Total Income Low Income Low Low Assistance Income Regular Assistance Income Regular Income Regular A - UPDATED RATE STRUCTURE (a) Wastewater Service Residential 50% 50% 50% Single Family - $/mo. 12.39 6.38 12.76 2.50 1.29 2.57 7.67 1533 Multifamily (per unit) - $/m°. 9.29 4.79 9.57 1.88 0.96 1.93 5.75 11.50 Non-residential Base Charge - $/mo. 12.43 12.80 0.91 0.93 13.73 Volume Charge - $/Ccf 0.89 0.92 0.19 0.20 1.12 Excess Strength Surcharge - $/ton Suspended Solids over 300 ppm 123.70 127.40 41.00 42.20 169.60 BOD over 300 ppm 237.10 244.20 65.70 67.70 311.90 COD over 600 ppm 118.55 122.10 32.85 33.85 155.95 Stormwater Service All Customer Classes Base Charge - $/mo. 0.35 0.18 0.36 0.00 0.00 0.00 0.18 0.36 Impervious Charge - $/mo./Csf 0.170 0.087 0.173 0.000 0.000 0.000 0.087 0.173 B - ALTERNATIVE RA I h STRUCTURE Wastewater Service Unmetered Residential - $/mo. Base Charge 5.24 2.70 5.40 0.91 0.46 0.93 3.17 6.33 Per Room 0.58 0.30 0.60 0.13 0.07 0.13 0.37 0.73 Per Water Closet 2.18 1.12 2.24 0.47 0.25 0.49 1.37 2.73 Per Bath 1.81 0.94 1.87 0.40 0.20 0.40 1.14 2.27 Per Separate Shower 1.81 0.94 1.87 0.40 0.20 0.40 1.14 2.27 Metered Residential Base Charge - $/mo. 5.24 2.70 5.40 0.91 0.47 0.93 3.17 6.33 Volume Charge - S/Ccf 0.89 0.46 0.92 0.19 0.10 0.20 0.56 1.12 Non- residential Base Charge - $/mo. 12.43 12.80 0.91 0.93 13.73 Volume Charge - S/Ccf 0.89 0.92 0.19 0.20 1.12 Excess Strength Surcharge - $/ton Suspended Solids over 300 ppm 123.70 127.40 41.00 42.20 169.60 BOD over 300 ppm 237.10 244.20 65.70 67.70 311.90 COD over 600 ppm 118.55 122.10 32.85 33.85 155.95 Stormwater Service All Customer Classes Base Charge - $/mo. 0.35 0.18 0.36 0.00 0.00 0.00 0.18 036 Impervious Charge - $/mo./Csf 0.170 0.087 0.173 0.000 0.000 0.000 0.087 0.173 mo. - month Csf - hundred square feet ppm - parts per million (a) The updated rate structure is a modification of the current rate structure (Table 16). Stormwater charges are now based on impervious area and multifamily customers have been separated from the non-residential class. Note: Rates shown in this table are for illustration purposes only and are not rounded. Application of these rates to representative billing units may not exactly calculate the example bills shown in a latter table. C-21 Table 10A Updated Rates and Charges Based Upon Current Rate Structure OM&R Capital Portion Portion (a) Total S S $ Wastewater Service Residential Single Family — S/Month 12.76 2.57 15.33 Multifamily (per unit) — $/Month 9.57 1.93 11.50 Non—residential (b) Base Charge — S/Month 11.92 0.93 12.85 Volume Charge — $/Ccf 0.92 0.20 1.12 Excess Strength Surcharge — Sion Suspended Solids over 300 ppm BOD over 300 ppm COD over 600 ppm 127.40 42.20 169.60 244.20 67.70 311.90 122.10 33.85 155.95 Stormwater Service Single Family — S/Month 5.87 5.87 Multifamily (per unit) — S/Month 4.40 4.40 Non—residential — S/Month 5.87 5.87 Ccf — hundred cubic feet ppm — parts per million (a) Capital Improvement Surcharge (b) Includes some large multifamily customers. Note: Based on: 1) Current rate structures 2) Fiscal year 1994 total costs 3) Updated cost of service allocations C-22 Table 13 Proposed Rates Fiscal Year 1994 OM&R Capital Portion Portion (a) Total(b) Wastewater User Charges Unmetered - $/Month Base Charge Per Room Per Water Closet Per Bath Per Separate Shower 5.40 0.60 2.24 1.87 1.87 0.93 0.13 0.49 0.40 0.40 6.33 0.73 2.73 2.27 2.27 Metered Base Charge - $/Month Residential 5.40 0.93 6.33 Non-residential (c) 12.80 0.93 13.73 Volume Charge - S/Ccf 0.92 0.20 1.12 Excess Strength Surcharge - Won Suspended Solids over 300 ppm 127.40 42.20 169.60 BOD over 300 ppm 244.20 67.70 311.90 COD over 600 ppm 122.10 33.85 155.95 Stormwater User Charges Base Charge - $/Month Impervious Charge - $/Month/Csf 0.36 0.00 0.36 0.173 0.000 0.173 OM&R - Operation, maintenance, and replacement Ccf - hundred cubic feet Csf - hundred square feet ppm - parts per million (a) Capital improvement surcharge. (b) Rates for all users except qualified low income residential users. Charges for low income residential users are 50 percent of the charges for all other residential users. (c) Includes non-residential monitoring charge. Note: The proposed rates will replace the existing rates and the existing $0.05 per $100 assessed value stormwater tax. Uniform Residential Flat Rate Charges (Previous Rate Structure) Calculated Less: Incr. Meter Cost 362,000 Capital Single Family - $/Month 12.76 2.57 15.33 2.58 Multifamily - $/Month 9.57 1.93 11.50 Non-res Base Charge - $/Month 11.92 0.93 12.85 Non-res Volume Charge - $/Ccf 0.92 0.20 1.12 Flat Rate Stormwater Charge (Previous Rate Structure) Total Full Year Cost of Service 34,851,200 0 34,851,200 Equivalent Accounts 494,744 494,744 494,744 Single Family - $/month 5.87 0.00 5.87 PROJECTED METERED USER CHARGE REVENUE Fiscal Year 1994 Wastewater Service Single Family Multifamily Non—residential Total Projected Units 30,228,700 Ccf 9,361,700 Ccf 38,619,200 Ccf 78,209,600 Ccf Excess Strength Suspended Solids 12,800 tons BOD 33,300 tons Total Wastewater Service Stormwater Service Residential Non—residential Total Stormwater Service 5,888,499 8,490,324 14,378,823 Projected Proposed Rates Number of Base Variable Services Charge Charge $/Year $/unit 279,895 17,583 27,592 325,070 297,478 27,592 325,070 a) Does not include low income assistance credits. 75.96 75.96 164.76 169.60 311.90 Projected Revenue(a) 1.12 55,117,000 1.12 11,820,700 1.12 47,799,600 2,170,900 10,386,300 127,294,500 4.32 2.076 13,509,600 4.32 2.076 17,745,100 31,254,700 C-24 PROJECTED UNMETERED USER CHARGE REVENUE Fiscal Year 1994 Projected Number of Projected Proposed Projected Services Units Rates Revenue(a) $/Unitiyr $ Wastewater Service Single Family Base Charge 65,849 75.96 5,001,900 Rooms 377,702 8.76 3,308,700 Water Closets 92,003 32.76 3,014,000 Baths 72,810 27.24 1,983,300 Separate Showers 12,742 27.24 347,100 Total 13,655,000 Multifamily Base Charge Rooms Water Closets Baths Separate Showers Total 30,807 75.96 2,340,100 321,529 8.76 2,816,600 81,697 32.76 2,676,400 75,453 27.24 2,055,300 3,237 27.24 88,200 9,976,600 Total Wastewater Service 23,631,600 Stormwater Service Base Charge 96,656 4.32 417,600 Impervious Area — Csf 1,532,183 2.076 3,180,800 Total Stormwater Service 3,598,400 Total Combined Service 27,230,000 a) Does not include low income assistance credits. C-25 Table 14 Comparison of Revenue Under Proposed Rates With Cost of Service Fiscal Year 1994 Net Allocated Projected Cost of Revenue(a) Service $ $ Wastewater Service Single Family 68,181,900 66,913,300 Multifamily 18,545,800 21,235,900 Total Residential 86,727,700 88,149,200 Non—residential Total Wastewater Service Stormwater Service Total Stormwater Service Total Combined Service 60,356,800 58,729,600 147,084,500 146,878,800 34,301,100 34,251,800 181,385,600 181,130,600 a) Includes subsidies for low income residential users. Single Family Residential Typical Bill Comparison Fiscal Year 1994 Typical Bills (a) Based on: Housing Attributes Equivalent Uniform Variable Metered R WC B S Usage Flat Rate(") Flat Rates Rate (0 Ccf/mo. $/mo. $/mo. $/mo. 3 1 1 0 6.4 15.33 13.52 13.50 4 1 1 0 7.1 15.33 14.25 14.28 5 1 1 0 7.7 15.33 14.98 14.95 5 1 1 1 9.8 15.33 17.25 17.31 5 2 1 0 10.2 15.33 17.71 17.75 6 1 1 0 8.4 15.33 15.71 15.74 6 1 1 1 10.4 15.33 17.98 17.98 6 2 1 0 10.8 15.33 18.44 18.43 6 2 2 0 12.8 15.33 20.71 20.67 7 1 1 0 9.0 15.33 16.44 16.41 7 2 1 0 11.5 15.33 19.17 19.21 7 2 2 0 13.5 15.33 21.44 21.45 8 2 1 0 12.1 15.33 19.90 19.88 8 2 2 0 14.2 15.33 22.17 22.23 9 2 2 0 14.8 15.33 22.90 22.91 10 2 2 0 15.5 15.33 23.63 23.69 R - Number of Rooms at 16 gpd or 0.65 Ccf/mo. WC - Number of Water Closets at 60 gpd or 2.44 Ccf/mo. B - Number of Baths at 50 gpd or 2.03 Ccf/mo. S - Number of Separate Showers at 50 gpd or 2.03 Ccf/mo. Ccf - hundred cubic feet gpd - gallons per day mo - month (a) Excludes stormwater user charges. (b) Assumes that current rate structure is updated and used to compute monthly charges. (c) Assumes water usage during the Best Equated Period equal to the "Equivalent Usage" for the indicated housing attributes, which may not be the case. Number In Random Sample 13 30 98 14 11 39 6 22 22 6 16 7 4 23 11 12 Table 16 Alternative Rate Structure Impact on Typical Customers Updated Current Existing Method Proposed FY 1993-a) FY 1994 (b) FY 1994 (b) $/mo. $/mo. $/mo. Metered Single Family Customer (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 12.76 13.68 Wastewater Capital Improvement Surcharge 2.50 2.57 2.73 Stormwater User Charge 0.24 5.87 3.15 Total 10.92 21.20 19.56 Unmetered Single Family Customer (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. Area) Wastewater User Charge 8.18 12.76 12.51 Wastewater Capital Improvement Surcharge 2.50 2.57 2.47 Stormwater User Charge 0.24 5.87 2.51 Total 10.92 21.20 17.49 Metered Multifamily Customer (4 Units, 28Ccf/Mo. and 2,073 sf Imp. Area) Wastewater User Charge 24.60 38.28 31.16 Wastewater Capital Improvement Surcharge 7.52 7.72 6.53 Stormwater User Charge 0.72 17.60 3.95 Total 32.84 63.60 41.64 Unmetered Multifamily Customer (16 Rooms, 4 Water Closets, 4 Baths and 2,055 sf Imp. Area) Wastewater User Charge 24.60 38.28 31.44 Wastewater Capital Improvement Surcharge 7.52 7.72 6.57 Stormwater User Charge 0.72 17.60 3.92 Total 32.84 63.60 41.93 Non-residential Customer (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge 75.64 119.56 120.44 Wastewater Capital Improvement Surcharge 22.98 24.33 24.33 Stormwater User Charge 0.24 5.87 532.70 Total 98.86 149.76 677.47 Large Surcharge Customer (271,315 Ccf, 962 Tons SS, 1,961 Tons BOD/Mo., and 789,351 sf Imp. Area) Wastewater User Charge 568,893.98 756,670.32 756,671.20 Wastewater Capital Improvement Surcharge 193,160.00 199,705.43 199,705.43 Stormwater User Charge 0.24 5.87 1,365.94 Total 762,054.22 956,381.62 957,74257 Large Stormwater Customer (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 17,896.72 17,897.60 Wastewater Capital Improvement Surcharge 3,694.35 3,888.93 3,888.93 Stormwater User Charge 0.24 5.87 7,390.37 Total 14,977.57 21,791.52 29,176.90 Ccf - Hundred cubic feet sf - square feet (a) Based on revenue requirements of approximately $104 million. (b) Based on revenue requirements of approximately $181 million. Note: These are average or typical customers. Some customers will pay more and some will pay less. C-28 Impact of Rate Alternatives on Example Customers A - Updated Rate Structure (a) No Low Low Income Program Existing Income Low FY 1993 Assistance Income Regular $/mo. $Imo. $/mo. $/mo. Metered Single Family (9 Ccf/Mo. & 1,611 sf Imp. Area) Wastewater User Charge 8.18 12.39 Capital Improvement Charge 2.50 2.50 Stormwater User Charge 0.24 3.09 Total 50% 6.38 1.29 1.57 12.76 2.57 3.15 10.92 17.98 9.24 18.48 B - Proposed Rate Structure No Low Low Income Program Income Low Assistance Income Regular $/mo. $/mo. $/mo. 13.25 2.62 3.09 50% 6.84 1.37 1.57 13.68 2.73 3.15 18.96 9.78 19.56 Unmetered Single Family (5 Rooms, 1 Water Closet, 1 Bath and 1,242 sf Imp. Area) Wastewater User Charge 8.18 12.39 6.38 12.76 12.13 Capital Improvement Charge 2.50 2.50 1.29 2.57 2.43 Stormwater User Charge 0.24 2.46 1.25 2.51 2.46 Total 10.92 17.35 8.92 17.84 Metered Multifamily (4 Units, 28Ccf/Mo. and 2,073 sf Imp. Area) Wastewater User Charge 24.60 37.16 19.14 Capital Improvement Charge 7.52 7.52 3.85 Stormwater User Charge 0.72 3.87 1.97 Total 32.84 48.55 24.96 38.28 7.71 3.95 6.26 1.24 1.25 12.51 2.47 2.51 17.02 8.75 17.49 30.16 6.23 3.87 49.94 40.26 Unmetered Multifamily (16 Rooms, 4 Water Closets, 4 Baths and 2,055 sf Imp. Area) Wastewater User Charge 24.60 37.16 19.14 Capital Improvement Charge 7.52 7.52 3.85 Stormwater User Charge 0.72 3.84 1.96 38.28 30.48 7.71 6.47 3.92 3.84 Total 32.84 48.52 24.95 49.91 40.79 Metered Non-residential (117 Ccf/Mo. and 307,710 sf Imp. Area) Wastewater User Charge 75.64 116.56 120.44 116.56 Capital Improvement Charge 22.98 23.14 24.33 23.14 Stormwater User Charge 0.24 523.46 532.70 523.46 Total 98.86 663.16 677.47 663.16 15.58 3.27 1.97 31.16 6.53 3.95 20.82 41.64 15.72 3.29 1.96 31.44 6.57 3.92 20.97 41.93 Large Surcharge (271,315 Ccf, 962 Tons Total SS, 1,961 Tons Total BOD/Mo., and 789,351 sf Imp. Area) Wastewater User Charge 568,893.98 733,792.08 756,671.20 733,792.08 Capital Improvement Charge 193,160.00 192,728.66 199,705.43 192,728.66 Stormwater User Charge 0.24 1,342.25 1,365.94 1,342.25 Total 762,054.22 927,862.99 Large Stormwater (19,440 Ccf/Mo. and 4,271,681 sf Imp. Area) Wastewater User Charge 11,282.98 17,314.03 Capital Improvement Charge 3,694.35 3,694.51 Stormwater User Charge 0.24 7,262.21 Total 957,742.57 927,862.99 17,897.60 17,314.03 3,888.93 3,694.51 7,390.37 7,262.21 14,977.57 28,270.75 29,176.90 28,270.75 120.44 24.33 532.70 677.47 756,671.20 199,705.43 1,365.94 957,742.57 17,897.60 3,888.93 7,390.37 29,176.90 (a) The updated rate structure is a modification of the current rate structure (Table 16). Stormwater charges are now based on impervious area and multifamily customers have been separated from the Non-residential class. Note: These are average or typical customers. Some customers will pay more and some will pay less. Ccf - Hundred cubic feet sf - square feet C-29 EMII MS KEN IMI ME INES MIL1 MN EA OE AL MN EN