HomeMy WebLinkAboutItem 14 - COUNCIL READING FILE_b_2012 Water and Sewer Agreement with Cal PolyAttachmen t
SCHEDULE A
Steps to setting Cal Poly'sappropriate share of the non-residential water rate
q Annually the City shall prepare a rolling five year schedule of expenses related to the City's provisionofwaterservice . The schedule will include actual expenses for the three most recent audited fiscal years andprojectedexpensesforboththecurrentandnextfiscalyear ,
q These expenses shall be divided appropriately according to operational, capital, or debt service . Each ofthesecategorieswillbefurtherdividedaccordingtowhetheritisasourceofsupply, treatment, or distributionexpense. The information for each year will be shown in a matrix, at the bottom and right of which wil l
appear the totals for that row and that column .
TABLE OF DEFINITIONS
Operations andMaintenanceTheportionofthebudgetthatpertains to daily operations and delivery of basic governmenta l
services related to provision of water service . The six water program budgets in the City'sfinancialplanformtheWaterFund's operating budget .
Capital Outlay
The portion of the budget that pertains to maintaining or replacing existing public facilities andassets, and for building or acquiring new ones as set forth in the City's capital improvementplan.For the purpose of the Cal Poly ratio-setting model, any project that is debt-finance d
will not show in the capital outlay expense category .It will show in debt service .
Debt ServicePaymentsofprincipal and interest on bonds and other debt instruments according to a pre -
determined schedule .
Source of Supply
Those water expenses directly related to the City's water supply from Whale Rock, Salinas ,
and Nacimiento Reservoirs, recycled water . It also includes water conservation expenses, a s
this has been the key to reducing City water demand, effectively creating more waterbyreducingtheneedtocreateadditionalwatersupply . Development of new water supplyprojectsfallintothiscategory .
Treatment
The cost to treat raw water from the City's sources to meet potable water standards, anddeliveritintothewaterdistributionsystem .
DistributionThecosttodeliver potable water from the water treatment plant to customers and firehydrantsviathedistributioninfrastructure . Meter reading and billing (customer service) ar e
included as distribution expenses .
q Expenses applicable to Cal Poly will be shaded . For example, Cal Poly has its own source of supply, so th e
source of supply expenses are not shaded . Cal Poly chose to be a partner in the 1996 upgrade of the wate r
treatment plant, and has prepaid all of its share of these costs . Therefore, Cal Poly is excluded from th e
debt service component of the treatment expenses (hence debt service is not shaded).
q The percentage of the shaded expenses to the total expenses will be calculated each year on the lin e
labeled "Percent Applicable to Cal Poly".
q The five annual percentages will be totaled and then divided by five to determine the average percentage o f
the rate applicable to Cal Poly, based on the five year schedule of expenses . This is the percentage of th e
Non-residential rate that will be charged to Cal Poly for the upcoming year Each year, the oldest year will b e
moved out of the schedule, the most recent audited fiscal year expenses will be added and a new year o f
projected expenses will be added after which a new five year average will be calculated . This "rollin g
average" will determine each new year's ratio
PH2-10
Attachment
Formula :(3 most recent fiscal years audited expenses)+(1 current fiscal year projected expenses)+ (1upcomingfiscalyearprojectedexpenses) divided by 5 = annual rati o
The Non-residential rate itself will vary according to the rates set by City Council each year .
PH2-11
WATER RATE SCHEDULE A
Cal Poly State Universit y
Schedule of Applicable.Ratio .:Proposed Method .49 %
Summary of Water Cost Components for 2008-200 9
Source
of Supply Treatment Distribution Tota l
Operations and Maintenance 2,823,900 2,754,100 2,174, 800 7,752,800
Capital Outlay 890,300 445,000 1,415,200 2,750,500
Debt Service - 2006 WTP 1,036,500 1,036,500
Debt Service - Other 556,400 692,400 10,400 1,259,200
Total 4,270,600 4,928,000 3,600,400 12,799,000
Percent Applicable to Cal Poly 33%28%61 %
Summary of Water Cost Components for 2009-201 0
Sourc e
of Supply Treatment Distribution Total
Operations and Maintenance 2,590,800 2,921,600 1,978,900 7,491,30 0
Capital Outlay 363,600 53,100 2,201,500 2,618,200
Debt Service - 2006 WTP 1,035,400 1,035,40 0
Debt Service - Other 554,500 690,100 66,200 1,310,80 0
Total 3,508,900 4,700,200 4,246,600 12,455,70 0
Percent Applicable to Cal Poly 32%34%66 %
Summary of Water Cost Components for 2010-1 1
Sourc e
of Supply Treatment Distribution Tota l
Operations and Maintenance 8,112,500 2,490,800 1,673,100 12,276,40 0
Capital Outlay 622,100 169,800 1,405,500 2,197,400 .
Debt Service - 2006 WTP 1,032,800 1,032,80 0
Debt Service - Other 554,500 687,200 66,900 1,.308,600 :
Total 9,289,100 4,380,600 3,145, 500 16,815,20 0
Percent Applicable to Cal Poly 22%1994 41%
Summary of Water Cost Components for 2011-2012
Source
of Supply Treatment Distribution Tota l
Operations and Maintenance 10, 396, 300 2,734,500 1,760,400 14,891,20 0
Capital Outlay 904,300 356 .600 2,392,600 3,653,50 0
Debt Service - 2006 WTP 1,034,000 1,034,00 0
Debt Service - Other 554,700 688,200 66,900 1,309,80 0
Total 11,855,300 4,813,300 4,219,900 20,888,50 0
Percent Applicable to Cal Poly 20%20%40 %
PH2-1 2
SCHEDULE A
Summary of Water Cost Components for 2012-1 .3
Source
of Supply Treatment Distribution Tota l
Operations and Maintenance 9,916,700 2,803,300 1,817,000 14,537,00 0
Capital Outlay 0 0 200,000 200,00 0
Debt Service -2006 WTP 1,034,600 1,034,60 0
Debt Service - Other 554,800 531,600 66,500 1,152,900
Total 10,471,500 4,369,500 2,083,500 16,924,50 0
Percent Applicable to Cal Poly 23%12%35%
PH2-1 3
Attachmen t
SCHEDULEBStepstosettingCalPoly's appropriate share of the non-residential sewer rate
q The City shall prepare a five year schedule of expenses for the City's sewer system . The five year period willincludethethreemostrecenthistoricalyears, the current year, and one prospective year .
These expenses shall be divided appropriately according to operational, capital or debt service . Each ofthesecategorieswillbefurtherdividedaccordingtowhetheritisacollection, pretreatment or a treatmentexpense. The information for each year will be shown in a matrix, at the bottom and right of which wil l
appear the totals for that row and that column .
TABLE OF DEFINITION S
Operations and MaintenanceTheportionofthebudgetthatpertains to daily operations and delivery of basic governmentalservices. The four sewer program budgets in the City's financial plan form the Sewer Fund'soperatingbudget.
Capital OutlayTheportionofthe budget that pertains to maintaining or replacing existing public facilities an d
assets, and for building or acquiring new ones as set forth in the City's capital improvemen t
plan . For the purpose of the Cal Poly ratio-setting model, any project that is debt-finance d
will not show in the capital outlay expense category .It will show in debt service.
Debt Servic e
Payments of principal and interest on bonds and other debt instruments according to a pre-
determined schedule .
Collectio n
Those sewer expenses directly related to the collection and transportation of wastewater fromitsvarioussourcestothewaterreclamationfacility .
PretreatmentThecostofthe program whose goal is to prevent toxic waste from entering the wastewatercollectionsystematNon-residential and industrial sources .
TreatmentThecostto treat and dispose of municipal wastewater . All disposal must strictly comply withtheStateHealthandRegionalWaterQualityboard's requirements for discharge into thecreekordisposalofbiosolids .
q Expenses applicable to Cal Poly will be shaded . For example, Cal Poly chose to be a partner in the 1996upgradeofthewaterreclamationfacilityandthecollectionsystem, and has prepaid all of its share of thes e
costs . Therefore, Cal Poly is excluded from the debt service component of the collection and treatmentexpenses (hence debt service is not shaded in these two columns).
q The percentage of the shaded expenses to the total expenses will be calculated each year on the linelabeled"Percent Applicable to Cal Poly".
The five annual percentages will be totaled and then divided by five to determine the average percentage o f
the rate applicable to Cal Poly, based on the five year schedule of expenses . This is the percentage of th e
Non-residential rate that will be charged to Cal Poly for the five year period .
The Non-residential rate itself will vary according to the rates set by City Council each year .
PH2-14
SEWER RATE SCHEDULE B
Cal Poly State Universit y
Schedule of Applicable Ratio :Proposed Method 86 %
Summary of Sewer Cost Components for 2008-2009
Collection Pretreatment Treatment Total
Operations and Maintenance 1,554,700 343,700 5,250,900 7,149, 30 0
Capital Outlay - Adjusted 12,027,900 1,300 334,700 12,363,90 0
Debt Service - Prepaid 249,800 0 1,885,800 2,135,60 0
Debt Service - Other 351,400 0 279,700 631,10 0
Total 14,183,800 345,000 5,865,300 22,279,90 0
Percent Applicable to Cal Poly 63%2%26%90%
Summary of Sewer Cost Components for 2009-201 0
Collection Pretreatment Treatment Tota l
Operations and Maintenance 1,658,500 313,100 5,073,200 7,044,80 0
Capital Outlay - Adjusted 1,627,900 300 249,300 1,877,50 0
Debt Service Prepaid 249,800 0 1,885,800 2,135,60 0
Debt Service - Other 774,700 0 281,300 1,056,00 0
Total 4,310,900 313,400 7,489, 600 12,113, 90 0
Percent Applicable to Cal Poly 34%3%46%82 %
Summary of Sewer Cost Components for 2010-1 1
Collection Pretreatment Treatment Total ,
Operations and Maintenance 1,834,900 313,500 4,971,000 7,119,40 0
Capital Outlay - Adjusted 1,790,500 5,500 514,100 2,310,10 0
Debt Service - Prepaid 249,800 0 1,885,800 2,135,60 0
Debt Service - Other 774,200 0 281,700 1,055,90 0
Total 4,649,400 319,000 7,652,600 12,621,00 0
Percent Applicable to Cal Poly 35%3%46%83 %
Summary of Sewer Cost Components for 2011-2012
Collection Pretreatment Treatment Tota l
Operations and Maintenance 1,602,400 355,000 5,614,500 7,571,90 0
Capital Outlay - Adjusted 5,699,900 9,500 1,676,900 7,386,30 0
Debt Service -Prepaid 249,800 0 1,885,800 2,135,60 0
Debt Service Other 0 0 281,700 1,107,80 0
Total 8,378,200 364,500 9,458,900 18,201,60 0
Percent Applicable to Cal Poly 45%2%42%88 %
PH2-1 5
SCHEDULE B
Summary of Sewer Cost Components for 2012-13
Collection Pretreatment Treatment Total
Operations and Maintenance 1,646,800 363,100 5,677,800 7,687,70 0
Capital Outlay - Adjusted 2,100,000 0 2,270,000 4,370,00 0
Debt Service Prepaid 0 0 1,884,800 1,884,80 0
Debt Service Other 825,700 0 233,800 1,109,50 0
Total 4,572,500 363,100 10,116,400 15,052,00 0
Percent Applicable to Cal Poly 30%2%55%87%
PH2-1 6
MEMORANDUM OF UNDERSTANDING ("MOU") BETWEE N
THE CITY OF SAN LUIS OBISPO ("City")
AND CALIFORNIA POLYTECHNIC STATE UNIVERSITY ("University")
REGARDING CAPACITY INTEREST IN CITY FACILITIE S
This MOU is made this 1st day of May 2007 by and between the City and the University .
Recita l
This MOU is intended to clarify the University's capacity interest (referenced in prio r
agreements as an "equity interest") in the City's water and wastewater treatmen t
facilities as more specifically set forth in the 1993 Agreement between the City of Sa n
Luis Obispo and California Polytechnic State University Regarding Water and Sewe r
Rates dated January 5, 1993, exhibit A, the Agreement between the City of San Lui s
Obispo and California Polytechnic State University Regarding Optional Equity Interest i n
the Water and Sewer Systems dated January 5, 1993, exhibit B, and the Memorandu m
of Understanding between the City of San Luis Obispo and California Polytechnic Stat e
University dated January 6, 1993, exhibit C .
Capacit y
The City and University agree to work together in the planning and development o f
facilities to ensure that adequate capacity in the City's water and wastewater treatmen t
facilities is available to meet the University's current and projected needs . The
University agrees to provide the City with its development and population projection s
annually which shall include an analysis of the University's water and/or wastewate r
treatment capacity needs as planned and projected for the next five years . The City
shall include the University's projections in its own master planning to ensure that th e
University's capacity needs are included in future facility upgrades and expansions .
Capacity Interest
The University has historically maintained a capacity interest in the City's water an d
wastewater treatment facilities sufficient to serve current and projected Universit y
needs . The University has done so by financially participating in required facilit y
upgrades and expansions via capital contribution based on the University's desire d
capacity percentage share of the facilities . Maintenance of said capacity interest ha s
ensured that the City has maintained available capacity to serve the University's need s
up to the amount of the capacity interest, and as set forth in the Water and Sewer Rat e
Agreement, has served to reduce the University's rates . The University may elect to
participate in future required upgrades and expansions to the City's water an d
wastewater treatment facilities and realize the resultant reduced rates . The University's
capacity interest in the City's facilities shall be calculated as water treatment averag e
demand equivalent to 1,000 acre feet as calculated on an annual basis and wastewatereffluentdailydryweatherflowascalculatedonamonthlyaverageof .471 milliongallonsdaily (MGM .
PH2-17
A-03-93--CC
ATTACHMEN T
EXHIBIT .."A "
AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPOANDCALIFORNIAPOLYTECHNICSTATEUNIVERSIT Y
REGARDING WATER AND SEWER RATE S
THIS AGREEMENT, made this 5th day of January ,,1993 by and between
the CITY OF SAN LUIS OBISPO, CALIFORNIA (hereinafter refered to as "City"), an d
CALIFORNIA POLYTECHNIC .STATE ' UNIVERSITY (hereinafter referred to a s
University")..
WITNESSETH :
WHEREAS, the City ,and the University • have a 'long-standing and uniqu e
relationship with regard ,to the co-development of water and 'sewer system ; 'and
WHEREAS, it is the desire of both parties to continue that 'relationship ; an d
WHEREAS, the City is upgrading both it's Water Treatment Plant *and Sewer
Treatment/Collection Systems ; and
WHEREAS, other City utility .customers have experienced periodic rate increases
due to changing costs ;and
WHEREAS,the University's rate .structure has ;not been modified • since 198 6
for sewer and 1964 for water;. an d
WHEREAS, both the City and''University have met and agreed to update the rat e
structure to reflect changing costs and the new capital projects ;an d
WHEREAS, the' City . and University .have •agreed .to a• new rate' structur e
methodology which ties the University to the City's approved rate structure and
periodic rate reviews, while reflecting the University's unique, differences from othe r
utility customers ...
NOW, THEREFORE, in consideration of their mutual covenants,the parties
hereto agree as follows :.
1 .RATE STRUCTURE METHQDOLOG Y
The University's rate structure for both water and sewer:shail be based on whateve r
the current rate is for City commercial accounts as modified by a percentage ("rati o
that accounts for that part of the rate structure that is applicable to the University .
This ratio shall be established as outlined in paragraphs 2 and 3, and reviewed ever y
five years .
ZW
A-Q3
r ~
ATTACHMEN T
XN1B1T "A"
The ratio to be applied to the commercial water rate structure shall be determined . by
the City. The City shelf prepare a prospective five • year . projection of -the revenu e
requirements for ; the City's :;water system : •• These .revenue requirements 'shall b e
divided : appropriatelyaccordingto operational, capital and debt service requirement s
forthree components :.source of supply, treatment and distribution . The appropriat e
percentage of total :revenue' requirements shall • be assigned -to each of 'th e
components . 'The e University's rate •• structure will be based ..on . the revenuerequirementsforthesecomponentslessanyequityinterestinthesystempurchased
by the University . ••
The University's option to .-maintain en ,equity interest in the watersyste m 'is define d
in a `separate agreement with the City ;' dated January 5, 1993
Exhibit A sets,forth this analysis for the period July 1 19 9 .2 through June•"30,::1997,.
and shell serve as an example for determining any changes to the *ratio insubtequentfiveyearperiods.
3 . ,SETTING :A SEWER .RATI RAT
i't--ratio•to be applied to the commercial sewer rate, structure shall be 'determined by
the . City .'.The City shalt•prepare .,a •prospective five .year projection ,of th e .revenu e
requirements .for • the . City's.. sewer system . , These revenue 'requirements'.shall be
divided :appropriately according to operational, capital • and debt service requirementsforthreecomponents : treatment, collection and pre-treatment .The University's .rate
structure will be based on the revenue requirements for these components .less any
equity interest In the system purchased by the" University :
The University's option to maintain an equity interest in .the "sewer system IS defined'.
in'.a separate agreement ,with the City,.dated :January3,1993
Exhibit B sets forth this "analysis for the 'period -July '1, 1992 ,through June 30,-1 997,.
and,shalt serve as an example for determining any changes: to the ratio in subsequen t
five year periods .. '...'..
4:EFFE CCTIVE :DATEFOR THIS RATE STRUCTUR E
This rate structure shall be effective July 1,1992 ..The City agrees that, due to th e.
significant financial impact, the University may .implement this .change by phasing i n
the total increase over a five year period . It is the City's 'understanding that th e
University cannot change its budget for 92/93, so the total increase is divided evenl y
in the four: following years . By 1996/97, the University shall be paying the 'ful l
commercial rate times the applicable ratio for water and for sewer . Water charges wil l
e-/rte
1
Rate "AgreementPage2
PH2-20
0 arracHMEa r
be assessed according to . Metered water flow . Sewer charges will be .assessed'
according .to metered effluent :discharge'•flow.Table-.l 'sets 'forth the ,phase-in
schedule of the ratios to be` used . Per paragraphs, two`and three of this Agreement.
5 . ' j-4OLA HAf
In recognition that the University`s'.vested interest is limited to the upgrading of the
facility, and that the University does not actively participate in the management of the
services being:provided .by the facility, the. City of San Luis Obispo will indemnify ,
defend and save harmless• the Trustees of the California :State University, its officers ,
agents, and employees from any and alt claims and losses accruing :or'resulting to any
personas), firmis), or corporation(s)who maybe injured or damaged as a result of the
service being provided 'by the City of .San Lilts .Obispo through Its • ' facility described
herein,except for -any such injury or .damage caused by any act,omission, or
negligence of University •..
6.AMENDMENTS TO .TtE RATI O
in the event the City and University 'cannot •reach agreement .on the' proposed
applicable ratio for the next five years ; the ratio in existence at that time shall remai n
in effect until agreement Is reached .. The parties agree to cooperate and ,use their bes t
efforts to reach agreement .on the proposed ratio il`i an .expeditious manner ..
7.NOTICE .
The City shall provide the University with 'at least• the same 'notice of >propose d
changes in water and sewer rates as other City customers .. ' • '•
WATER RATIO
FIVE YEAR PHASE I N
July 1, 1992 Current rate structure
Ratio applied-against .
City standard isles,
for. commercialet'counts
July 1, 1993 21 %
July 1 . 1994 30%
July 1, 1995
July 1, 1996
Table I
SEWER RATS )
FIVE YEAR PHASE IN
Current rate 'structure
Ratio applied against .-.
City Standard rates .
fa :commercial accord
39%.
48%
80 %
100%
Rate Agreemen t
Page 3
PH2-21
Bete Agreement.
Page 4
ATTACHMENT
t
All notices related to this agreement shall be in'writing and addressed as follows :
University
Norm .Jacobsoh,; Energy Coordinator.::City ClerkFacilitiesAdministrationCity•' of San Luis Obisp o'
Cal Poly ,State University F .Q .Box 8100 .
Sen.Luis Obispo, CA 93407 -San Luis Obispo, CA ...9340 6
Ray (*des,Directo r
Support ;Services .
tiCal Poly State University.....:?:;
San Luis Obispo, CA .93407 ;
AGREEMENT CONTAINS ALLUNDERSTANDINGS .
This;tiocument (including all exhibits"referre d .to above and attached : hereto) representsthe-::entire `and .-'integrated .Agreement between the .City .and :the -University :and'.
supersedes ail .prior .negotiations,: representations,or•Agreements,either ,written o r
oral,_'; except•at *described in :a .:separate Memorandum •of Understanding .by .andbetween'the parties herein ..:This document- may be amended .only by.••writteninstrumnent,:signed by both 'City and University :All .provisions of this Agreement.are "' •
ex'pressly . Made conditions .This 'Agreement shall .be •governed,by .the .laws oftheStateofCalifornia .'
IN WITNESS WHEREOF, CITY and UNIVERSITY have executed this Agreemen t
the day and year first -above written:
e -/F"
PH2-22
Rate Agreemen t
Page 5
ATTACHMEN T
EXHIBIT "A "
UNIVERSITY'S APPLICABLE PERCENTAGE (RATIO).
OF .APPROVED, WATER RATE STRUCTUR E
As 'required in Paragraph 2, the City has •developed :a five year revenue projection for.-.::
the water•.syystem'.;°The components and applicable :percentages of,the•.total••reyenuerequirement.for 92/93 through FY '96197 are shown on Schedules' A-1 and A-2 .
w1 .: ••Applicable••Components to the .' Universit y
The ; University ...shall • not .;pay.the, percentage cost of ;those , components ..related toSourceofSupply, as the University :has its .own source of supply .at':Whale Rock . TheUniversityshallpaythe, percentage cost •of treatment :end distribution ;.less anycostfordebtservicerelatedtothecontinuingequityinvestmentina .portion of the watersystem...
2... `.: Applicable Water :Rate• Ratio .for the period beginning'July ::i ;1992 and ending
June 30; 1997
The :City : is currently proposing to :make',significenfimprovements to . Its watertreatmentplanttomeetdrinkingwaterqualityreguiations'and to modernize the
facility ;.it•is expected that the City will debt finance ths project usingleaserevenue.bonds over.a period of 20•t o .30 years ....The University may choosetoparticipateinthe :financing•or pay ;its capital share .of the revenue requirements •
directly. The appropriate ratio to .be applied against the City's commercial, rateswilldependupon -which'of these options the University selects :
A.' Percentage ofrate structure for 7992/1997,withoutcapital contribrtion
for equity interest In Water Treatment Plant .Upgrades,,
The University shall pay the, average :of .:th$five :year percentage costoftreatment:and 'distribution,orpercent of the city-wide commercial rate,•
assuming it does not make a direct equity contribution to the proposed Wate r.
Treatment 'Plant improvements . The table' below summarizes the detail onScheduleA-1 :
NO EQUITY COIQTRIBUTION
92193 61%.
93/94 ..56%.::
94/95-48%!
95/98 .42 %
88/97
PH2-2 3
ATTACHMENT
RateAgreementPage.6 EXHIBiT ..
B Percentage ofrate structure for 1992/1997,yvith_capital contribution for
equity interest In .Water Treatment Plapt Upgrade ••
The University may elect to ,make an equity contribution to the Water
4 Treatment Plant upgrade . The City will adjust the percentage indicated .i n' ,
paragraph A above as necessary,1f .the University elects this option and when
a'•'payment is'received . The 'City anticipates the applicable percentage of City-.'f....'wide commercial rate Will .be reduced to approximately percent; but this :.
percentage wil l 'be refined when project,costs' and applicable debt service is'`'
4 established. In . the 'event that' the • University - chooses .this'option,'thi s
Agreement will be amended to reflect the revised 'ratio :The :table below
summarizes the detail on Schedule A,2 :
ATTACHMEN T
EXHIBIT ."A "
APPLICABLE' RATIO NONEQUITY CONTRIBUTIO N
SUMMARY OF WATER COST . COMPONENTS FOR 1892-9 3
Source'ot S u
Operations and Maintenance $2,727,837 '
Capital Outlay $0
Debt Service $269,200
2,997,03t .TOTAL '
SUMMARY OF-WATER COST .'COMPONENTS FOR,1993-94 '
SourceofSupply
Operations and 'Maintenance $2,984,693•
Capital outlay • $0
Debt Service '• $269,200
Operations and Maintenanc e
Capital Outlay
Debt Service
TOTAL '
SUMMARY OF WATER COST COMPONENTS FOR•1995-96 ..
Operations acidMaintenanceCapital'Outlay
Debt Service
TOTAL •
F t o
SUMMARY OF WATER COST .COMPONENTS FOR 1 996-97
Total
44,792,06
1 $600,000 '
681,200
6;073 ;251
TOtai .
7,345,38 9
600,090$
2 .044,700
9.890,089
Total
7,645,180
500,000
k'$2,044,700
10,189 88 0
PH2-2 5
SUMMARY : OF WATER COST COMPONENTS•FOR i :994-=9
Source of SuppiY r`r
3,664i789';
Q
i `'Yyz s
869,200 to s...r ,. 3 ,.;..r .~}f sy rs :•......$
4,6$3 089
Source of Su • • i `
burce .of Su
Operations and MaintenanceCapitalOutlayDebtService
TOTAL .
Total
6,163,676500,0000.....+'
2 044,700
8,708,376
PH2-2 6
Rate Agreemen t
Page 8
ATTACHMEN T
SUMMARY OF WATER-COST COMPONENTS FOR 3'996797
Operations and Maintenance .
Capital outlay .
Debt Service
TOTAL
SUMMARYf=OF .WATER CAST CQMPONENTS .PQR .1994—9 5
Operations and maintenance
Capital Outlay
Debt Service
TOTAL
5 YR AV G
92/93 100%"
93/94 . ° 100 %
94196 :100 %
95/96 . 100 ,.
96/97 '1QO %
100%
XHIBIT '1A"
UNIVERSITY'S 'APPLICABLE PERCENTAGE (RATIO )
OF APPROVED SEWER RATE STRUCTUR E
As' required in Paragraph 3 ; the City ; has .developed a ..five year revenue projection fo r
the =sewer system.• !:The -components sand related rpercentages ':of :the .'total revenueTequirement:for. FY 92/93 through FY .96/97•are-shown on .Schedules B-1 and B-2 .
11 .Applicable Comp'onents-to .the University..
The :Universityshell pay the applicable percentage cost of treatment,collectionandFiretreetment, less .;any.. cost for,debt ..service related to the .continuing ;equityinvestmentin'a portion of the sewer system.'
2 .;:':.':Applicable Sewer Ratio for the period • beginning . July:1, 7992 .and tending June30, 199 7
The City.. is .currently making modifications .to•its ; sewer:.system to :assure =.continuin g':.
compliance'• with':'State of : California -:effluent. ' discharge . 4equirements . These..:
modifications 'sere being performed in three phases,:each-of :which'has been approve d
for .low interest- loan funding through'the State Revolving Loan Fund administered bytheState- Water Resources' Control : Board ; -:Division !Of :Clean,Water-Programs . The
University may choose to.'participate'in the;financing •orrpay its .'capital share of the
revenue'requirements directly.The appropriate ratio to be . applied against the City`s '
commercial rates will depend upon which ofthese options the University selects .•
A . Percentage of rate stnrcture for 1992/1997,wjthout,capitalcontributionforequityinterestinSewerSystemUpgrade '
The table below summarizes the detail on Schedule B-I :
ATTACHMEN T
Rate Agreement -
Page 9 •
The.:University shalt pay the average .of the . five ':. year• percentage cost o f:
treatment and collection and "pretreatment,• or Z)Q . percent of the city-widecommercialrate, if it does not . continue' its equity..interest in the sewer system ,
PH2-27
Rate Agreemen t
Pagel0
ATTACHMEN T
HIEIT ."A '
Percentage of ratestructure for •1992/1997,,wftft capital contribution for
equityinterest In Sewer System Upgrade
The,University may elect to make an .equity contribution to the,sewer•systemupgrade.The City .will adjust ,the •percentage'indicated in paragraph A aboveas:necessary, if the University,electsthis option and 'when payment is received .
The City anticipates the applicable percentage of city-wide commercial rate will '.
be reduced to approximately 1Q percent, but this percentage will ,be,refine d
r•when project costs and applicable debt,servkke is established . In the event tha t
fat:N. the University chooses this option, this Agreement •will . be arrlended to .reflect..
he ,revised ratio..: The table below summarizes`the' detail•'ori :Schedule B-2 .,
Enu1TY •cQNTRIBUTION
X66 %
70°,6
ri
r ..; '.92193 •_:93% '.
93194 •63 %
94195 •.'.0 6 4%64%'
95/96 65%'.
96197
5 YR AVG .,•:..
ATTACHAOENT
EXHIBIT T
APPLICABLE RATIO NON-EQUITY CONTRIBUTIO N
SUMMARY OF SEWER COST-COMPONENTS FOR 1992-9 3
C:.3»sw. )G:: ~iv1i:',}SR+W:2 :.Rk.SR.d?.SY34<'L'.~:s~+^5*~YF~.{FY.y»;4g!'"~..gT.t41h':X .n^?:35`5?!
Operations and : Maintenance ,.
Capital Outlay ,
Debt,Serylce •.
TOTAL
SUMMARY OR SE WER :COST:COMPONENTS-FOR ;1993-..9.
Operations and Maintenance .
Qapltal Outlay
Debt Service ;..<
TOTA L
SUMMARY;OF:SEWER:COST :`COMPONENTSFOR `l9 .94-;9,..
4
x r3~~-'Z~~F+F3 y'i'~~~rsSc1AkS ~oS.v '~;raa`Sibc7.!
Operations end atntenanc e
C pital Outlay e ~r ~:C ;. a y {wF.~y f?»'x R.tY,r F rt d'~^'F X'
Z~_C ~~o~~z a,y $, sro i~^..~ x^•-syy y .1/1 s Tu .~`,~Y ~
Debt Servic$;.•M 3r 3'y°'ti n s ?
vZTOTAL••'•2 ~ { ~~~C,`{~~a~~i~~+.A~i'Gi x }"s ,<~~.fs ~r .or+E7:<3'ufk$`'S
SUMMARY OF SEWER COST COMPONENTS FOR 1Q95-9 6
ti'.iJ..1'?55<c... {t':ro::~>:FSk:,,;.~c;;'.5i<5•2w.5?3i.:I S K .z?z^ k?.Y3i <t ~d's:?%
Operations and Maintenance
OapitalOutlay .
Debt Service
TOTA L
SUMMARY :OF SEWER COST COMPONENTS FOR 1995 .97 .
Operations andMaintenanceCapitalOutlay'
Debt Service
TOTAL
Rate Agreement .
Page 11
rH2-29
APPLICABLERATIO -~ ' EQUITY CONTRIBUTIO N
SUMMARY OF SEWER COST COMPONENTS FOR 1992-9 3
Operations and Maintenanc e
Capital Outla y
bebt'Service
TOTAL .
t s,F'?ti~,'o'e:,1xi.'Y$2o`°.~kF .'1..,?,1.~,..5..`.~:~;=t:t`.ti1b5 . -, -s ...:.,>~•,3w§«;.:sF :.k~?~;:;z.,s :s:,r~v~?'I,J~rri.z..,:Yz.'..a.ti>::
T,,-SUMMARY ' OF .SEWER• COST :COMPONENTS FOR 1993 9
f l Y .u f .1bSw~^.,WiiSaY`33~.f.'uRPU4?.R.'J!n,Y9lkC £v~.L~~+^aYSh-`.eWn`i.•i.a'h~.SCmt'<."1~{z '~'s5''y~.~F â p N~L+~'~i l'3z9fi~"r~}L P N ~5'TOperationsandMaintenance
Capital Outlay '
Debt Service'$251,504 $1,848,600 $2,100,100 '
TOTAL $847;6558 :'.':$4,620,695 $5,641.,127 .
SUMMARY 'OF SEWER COST COMPONENTS FOR 19944 5 ;.:-:..
y '.
3sr"'k arc-w"'v.m z ~~~"'~'.r~,~~"7OperationsandMaintenance~~~~,s
Ca Ital Odtla ~s x i >s E ~s
Debt Service $251 ;500 -.$l ;$68,400.$2,117,90 0
TOTAL'.$877,46f;-$4:758 .760.x .$5,814,65 $
SUMMARY OF SEWER COS` COMPONENTS ~Ol995-96 '
ASV yf3 4 5i lg 3yt ~L /4y %y z
Operations and Maintenance'y'~y
n.'Ska {i S ~.f TkSrk" ~~ '.rx\~y ~v yw~•aY sy
Capita( Outlay .''a¢w'Y `~ia"'Y,^'w^~..x`2>F~Eo ,r/~fF#r o m'."F '.cF'"~~~i,'?~3'i,.3k°'~
Debt Service $251,500 u r<f ,$1 866 400 ..•$2 ;117,900
TOTAL :$908 763~4 f $4,878,914 :$5,978,153
t
SUMMARY OF SEWER COST COMPONENTS FOR 1996-9 7
1 cs *§rJ ,v^Y,''<'3ro-;Y~1\`~~r!!s,c f ^F '?P~3h..~ir wu ~~n aka " ~f 5~r ;
Operations and Maintenance ..~~r ~\£i .'~~. 3 Y Y 'vt`s, }!i r ~~~ > ~~'1.,~`S ~F<~.'g/ r3 ,y ,nf~4
Capital Outlay •
Debt Service $251,500 .7 s:' >t $1 ;866,400 $2,117.900
TOTAL $940,927f : $5,018,095 :$6,158 ;$30
251,500 s:wsk?.%:n 3 ;'$251,500'.
819,270 $3,729 ;200
ATThCHMEN T
X1EtRIT C1<s
To :John Dunn Date :,xsu ary 6, 1993
City Administrative .Office r
City of San Luis Obi o
From :Frank Lebens""'
Interim Vice .President :forBusinessAffeirsCaliforniaPalytechnic`State Universit y
Subject :..MEMORANDUM .OF "UNDERSTANDIN G
Water'and Sewer Rates/Water and Sewer System s
development of •water .and sewer systems ;and
WHEREAS, it Is the :desire of .both parties to continue :that relationship;an d
WHEREAS; the City of'San Luis Obispo is upgrading both Its Water :Treatment .
Plant and 'Sewer Treatment/Collection Systems ; and • • ••
WHEREAS, other City of San'Luis Obispo utility customers haveexperiencedperiodicrateincreasesduetochangingcosts ; an d
WHEREAS, both the City of San Luis Obispo and California PolytechnicStateUniversityhavemetandagreedtoupdatetheratestructuretoreflectchangingcosts
and the new capital projects ; and
WHEREAS, Cat Poly State University wishes At'Update ; prioragreementsregardingitsoperationalneedsand .related equity interest in the • City of SanLuisObispo's water and "sewer system ; and
WHEREAS, maintaining an equity interest in the City of San Luis Obispo's
water and sewer systems is solely at the option of the University ;-
NOW, THEREFORE, agreements setting the conditions and terms for thisrelationshiphavebeen :.developed by both parties wherein a payment schedule ha s
been agreed to by both parties which would be funded through California PoiytohnicStateUniversity's Major Capital Outlay Program,'such funding expected to b e
approved for fiscal year 1994 .95 ..
WHEREAS, the City of San Luis Obispo and Celifeinia,•,Polytechnic,stat e•'
University have'a .longstanding and unique .:relationship :With :regard-to': the co -
PI-12-3J
ATTACHMEN T
Wm '
The funding formula set forth in the referenced agreements by California Polytechni c
State University assumes na equity contribution to the City of San Luis Obispo for the
upgrading of its Water Treatment Plant and Sewer TreatmentlCollection Systems .
If the University chooses ,to maintaln .an equity interest .and funding is available, th e
fees will ,be recalculated :as stated in .O f Exhibit A and paragraph 2B o f
Exhibit B.; of the Agreement Regarding Water and Sewer Rates . '..
If this Memorandum of Understanding is acceptable, please sign,• date, ,and return the
attached copy to me :,Tbani •.