HomeMy WebLinkAbout06-10-2014 B2a Water Enterprise Fund ReviewCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Carrie Mattingly, Utilities Director
Prepared By: Wade Horton, Water Division Manager
Brigitte Elke, Business Manager
SUBJECT: 2014-15 WATER ENTERPRISE FUND REVIEW
RECOMMENDATION
1. Review and accept the Fiscal Year (FY) 2014-15 Water Enterprise Fund report.
2. Conceptually approve the FY 2014-15 Water Enterprise Fund budget, with final action
on June 17, 2014, with the adoption of the 2013-15 Financial Plan Supplement
3. Adopt a resolution revising water fixtures and meter charges based on current material
costs for meter sizes and time and material on larger sizes.
DISCUSSION
This report presents the annual review of the City’s Water Enterprise Fund. It highlights major
adjustments made to the Fund analysis since the preparation of the 2013-15 Financial Plan.
As outlined in the FY 2014-15 Water Enterprise Fund Analysis, which forecasts the financial
position of the Water Fund through FY 2020-21, the City continues to:
1. Provide adequate water supply for the community;
2. Fund debt service for the completed Water Treatment Plant improvements and the City’s
share of long-term financing obligations for the Nacimiento water supply;
3. Manage capital maintenance projects to maintain the community’s water infrastructure
assets; and,
4. Provide recycled water for landscape irrigation and construction water purposes.
FY 2014-15 Water Enterprise Fund Analysis Report
The FY 2014-15 Water Enterprise Fund Analysis Report (Attachment 1) includes changes in
financial position, analysis assumptions, an update on major activities and programs, and
incorporates two capital improvement projects; one for the unanticipated replacement of a
pressure reducing valve at Foothill and Chorro Street and one for the construction phase of
emergency waterline replacement on Monterey Street as presented to Council on December 10,
2013.
June 10, 2014
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Water Enterprise Fund Review – FY 2014-15 Page 2
2013-15 Financial Plan Supplement: FY 2014-15 Budget
Revenue Update
Overall, revenue projections for FY 2014-15 are estimated to come in one percent lower than the
2013-15 Financial Plan assumptions due to downward adjustments in interest earnings and a
reduction in sales to other agencies.
The City Council adopted water service rates in support of the City’s 2013-15 Financial Plan
during a public hearing on June 12, 2013, in accordance with Proposition 218 requirements. The
adopted FY 2014-15 water rates reflect a 5.5% increase, effective July 1, 2014.
Operating Program Update
The Water Enterprise Fund administers seven operating programs, all of which are on track with
their respective work programs within allocated resources. No increases or changes from the
assumptions made in the 2013-15 Financial Plan are recommended for FY 2014-15. The Source
of Supply program element within the Water Enterprise fund is approximately 60 percent of
overall operating expenditures.
Capital Improvement Plan Amendments
One recommended project addition will replace the pressure reducing valve at the intersection
Foothill and Chorro. This project will add $109,000 to the capital improvement plan for FY
2014-15 as outlined in Attachment 1.
The second project was brought before Council on December 10, 2013 due to continued issues
with the water transmission line on Monterey Street between California and Pepper. In this
report staff recommended the replacement of the line and the City Council approved the design
contract and authorized staff to advertise for bids. Funding of the construction contract was to be
included in the FY 2014-15 Supplement. Construction cost is estimated at $391,430 with the
amount incorporated in the Fund review.
Proposed Revisions to Water Fixture and Meter Charges
The proposed Resolution “Setting Charges for Water Customer Valves, Adapters, and Meter
Boxes and Lids” (Attachment 2) identifies the proposed revisions to water fixture and meter
charges. Due to changes in State-mandated lead standards in plumbing fixtures (AB 1953), water
fixture and meter costs have increased substantially. Additionally, prices vary greatly depending
on the application of the meter, i.e. landscape versus apartment complex versus schools. Based
on the price differences, staff recommends applying a “time and material” cost to the new rate
schedule in order to recover the cost as accurately as possible.
FISCAL IMPACT
The additional recommended capital project will cost $109,000. The Water Enterprise Fund
analysis estimates that the fund will have an unreserved working capital of $2,974,173 at the
beginning of FY 2014-15, sufficient funding to cover the cost of the project.
ATTACHMENTS
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Water Enterprise Fund Review – FY 2014-15 Page 3
1. FY 2014-15 Water Enterprise Fund Analysis and Exhibits
2. Resolution Setting Charges for Water Customer Valves, Adapters, and Meter Boxes and
Lids
T:\Council Agenda Reports\2014\2014-06-10\Enterprise Fund Review (Grigsby-Mattingly)\Water Enterprise Fund Review
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ATTACHMENT 1
FY 2014-15 Water Fund Analysis
June 10, 2014
Prepared by the
Utilities Department
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Attachment 1
________________________________________________________________________________________________________
City of San Luis Obispo
FY 2014-15 Water Enterprise Fund
TABLE OF CONTENTS
I. OVERVIEW
II. 2013-15 FINANCIAL PLAN SUPPLEMENT: FY 2014-15 BUDGET
A. Revenue Summary
B. Operating Program Summary
C. Capital Improvement Plan Summary
D. Debt Service Summary
III. MAJOR ACTIVITIES AND PROGRAMS
A. FY 2013-14 Update
B. FY 2014-15 Forecast
EXHIBIT A – FINANCIAL SCHEDULES
A.1. Changes in Financial Position
A.2. Projection Assumptions
A.3. Capital Improvement Plan
EXHIBIT B – WATER RATE STRUCTURE HISTORY
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Attachment 1
________________________________________________________________________________________________________
FY 2014-15 Water Enterprise Fund Analysis
I. OVERVIEW
This report presents the financial condition of the Water Enterprise Fund, based on the 2013-15
Financial Plan Supplement: FY 2014-15 Budget and includes operating and capital programs. It reflects
regulatory requirements, infrastructure maintenance, and adopted City financial policies and compares
the fund’s standing with the assumptions made for the 2013-15 Financial Plan.
II. 2013-15 FINANCIAL PLAN SUPPLEMENT: FY 2014-15 BUDGET
A. Revenue Summary
The Water Enterprise Fund’s projected revenues are summarized in Table A.
Table A. Revenue Summary
Original Revised Original Revised
BudgetBudget Variance BudgetBudget Variance
Investment & Property Revenue 169,20050,000(119,200)140,80050,000(90,800)
Water Service Charges 16,131,90016,131,900 0 17,019,20017,019,200 0
Sales to Other Agencies 896,400896,400 0 945,700842,908(102,792)
Development Impact Fees 662,000662,000 0 678,600678,600 0
AB 939 Reimbursement 128,400128,400 0 131,000131,000 0
Account Set-up Fees 101,400101,400 0 103,400103,400 0
Connection Charges & Meter Sales 27,00027,000 0 27,50027,500 0
Other Revenues 30,00031,4301,43030,60032,1001,500
Total 18,146,30018,028,530(117,770)19,076,80018,884,708(192,092)
2013-14 2014-15
Overall, revenue projections for FY 2013-14 are in alignment with the 2013-15 Financial Plan with a
correction to expected investment revenue. FY 2013-14 revenue projections are based upon actuals
through March 31, 2014. For FY 2014-15, investment earnings were adjusted from the original
assumptions and Sales to Other Agencies income reflects the lower rate applicable for Cal Poly. Beyond
FY 2014-15, Water Service Charges are estimated using projected water service rate changes applied to
the previous year’s projected sales.
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Attachment 1
________________________________________________________________________________________________________
With the 2013-15 Financial Plan, the City Council adopted rates applicable to both years of the
Financial Plan. In order to keep the fund healthy and in good financial standing for bond ratings, the
Council approved a rate increase of 5.5% effective July 1, 2014. The new rates, applicable July 1, 2014
are summarized below:
FY 2014-15 Water Rates
Customer Type All Customers 1
Inside the City Rates 1 - 8 Units $6.92/ Unit
9+ Units $8.65/ Unit
Base Fee $5.28
Outside the City Rates 2 1 - 8 Units $13.84/ Unit
9+ Units $17.30/ Unit
Base Fee $10.56
1 1 unit = 100 Cubic Feet = 748 gallons of water
2 For service to customers outside the City, the water rates are two times the
“in-City” rate.
The following table compares the FY 2013-14 and FY 2014-15 monthly cost for residential customers
based upon various usage levels and approved water rates. The average water usage is 8 units of water.
Residential Monthly Water Bill Comparison
Consumption 1 3 units 8 units 2 12 units 25 units
Water Current $24.68 $57.48 $90.28 $196.88
Water Proposed July 1, 2014 $26.04 $60.64 $95.24 $207.69
Variance (5.5%) $1.36 $3.16 $4.96 $10.81
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Attachment 1
________________________________________________________________________________________________________
B. Operating Program Summary
The Water Division Operating Program budgets are summarized in Table B. The summary reflects the
operating program base budget amounts for FY 2014-15 as approved with the 2013-15 Financial Plan.
No changes were made to the program budgets and all work programs will be achieved within Financial
Plan 2013-15 allocated resources.
2014-15
BUDGET
7,716,900
320,500
2,337,700
1,116,300
298,400
554,300
659,600
$13,003,700
(1) Source of Supply costs include $6,190,500 in FY 2014-15 for the Nacimiento Water Project
(2) Customer Service costs are allocated 50/50 between the Water and Sewer Funds
Table B. Summary of Operating Programs
Water Source of Supply (1)
Water Administration/Engineering
Utilities Conservation
Water Treatment
Water Distribution
Water Customer Service (2)
Water Franchise Fees
TOTAL WATER SERVICES OPERATING PROGRAMS
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Attachment 1
________________________________________________________________________________________________________
C. Capital Improvement Plan Summary
Capital improvement project expenses are forecast based on infrastructure maintenance and repair
history, individual project budget estimates and regulatory requirements. Maintaining the water system
infrastructure, including major equipment and technology, is critical for the delivery of uninterrupted
high quality water services to the community. Water Division Capital Improvement Plans are
summarized in Table C. The table includes one new recommended capital project for the replacement of
a pressure reducing valve on Foothill and Chorro Street.
Table C. Capital Improvement Plan
2013-142014-15
BUDGET PROPOSED
Water Treatment Plant
Major Facility Maintenance 60,000 310,000
Fleet Replacement: Compact Pickup 24,300
Water Distribution
Distribution System Improvements - Pipelines * 1,877,521 1,470,000
Fleet replacement: Portable Generators (50% share)- 152,900
Street Reconstruction 20,050 -
Monterey Waterline Replacement 59,840 -
Distribution Pump Station Upgrads - 50,000
Telemetry System Upgrade - Water Distribution 1,500,000
Monterey Street Waterline Replacement 391,430
Foothill/Chorro PRV Replacement - NEW 109,000
Administration and Engineering
Fleet replacement: Sedan 16,200
Mobile Equpment Lifts and Safety Stands 9,100
Water Customer Service
Fleet Replacement: Compact Pickup 24,300
Utilities Services
Fleet Replacement: Compact Pickup 24,300
Total Water Services CIP Requests 3,582,2112,516,730
Shared Information Technology
Office related application software & storage 41,50029,400
Total Share of Information Technology CIP 41,50029,400
Carryover from 2012-13 950,312
TOTAL WATER FUND CAPITAL PLAN $4,574,023$2,546,130 *includes trench repairs, fire lateral reimbursement, raise valve covers, and water storage reservoir maintenance.
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Attachment 1
________________________________________________________________________________________________________
D. Debt Service Summary
The Water Enterprise Fund’s debt service obligations are summarized in Table D.
Table D. Debt Service Summary
2014-15 Comments
Budget
2012 Water Revenue Bonds $569,600 Refunded 2002 Water Revenue Bonds.
2006 Water Revenue Bonds $1,034,000
State Revolving Fund Loan - Water Reuse $525,500
2009 Public Safety Radio System Upgrade $37,600
2009 Public Safety Communications Center $28,600
Total $2,195,300
The Nacimiento Water Supply Project debt financing is facilitated through the County, and the City’s
share of the debt service costs are accounted for as an operating expense in the Source of Supply
operating program budget.
III. MAJOR ACTIVITIES AND PROGRAMS
A. FY 2014-15 Update
1. Johnson Avenue 16 inch Waterline Replacement Phase 1
This project will replace approximately 3,000 linear feet of 12 and 16 inch cast iron waterline on
Johnson Avenue between Iris and the Bishop Pump Station, which is five hundred feet northeast
of the Johnson and Bishop intersection. Additional pipe work will also be completed on Bishop
Street between Johnson and Augusta.
The Johnson Avenue Waterline Replacement project was identified in the 2013-15 Financial
Plan, pages 3-114 to 3-119. In order to minimize interruption to San Luis High School,
implementation of the phases listed in the Financial Plan has been reorganized. $910,000 was
identified for this phase of the project (2014-15 Project List), which is consistent with the
Engineer’s Estimate. Funding of $1,350,000 for other replacement waterline sections
immediately in front of San Luis High School (2013-14 Project List) will be moved to 2014-15
so that work can be accomplished during summer break.
Phase 1 design is complete and the project is currently out to bid, with construction scheduled to
begin June 2014. Phase 2 will replace approximately 3,700 linear feet of 16 inch cast iron
waterline on Johnson Avenue from Lizzie Street to San Luis Drive, San Luis Drive from Johnson
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Attachment 1
________________________________________________________________________________________________________
to California, and California from San Luis Drive to Mill Street, is currently at 60% design, with
construction scheduled for summer 2015.
2. Monterey Street Waterline Replacement
In the past 17 months the ten-inch waterline on Monterey Street between California and Pepper
has broken twice. Businesses in the area were without water and traffic was diverted around this
section of Monterey Street while crews spent several hours repairing the break.
An analysis of the risk and benefit of replacing the waterline was completed after the second
break. Although the project was not currently on the list of scheduled waterline replacements, the
Utilities department recommended replacement as soon as possible.
Staff has received approval from council in December 2013 to move forward with the design of
the replacement section, with funding for the construction services portion of the project to be
provided during the 2014-15 budget supplement process from the Water Fund’s working capital.
Design phase is currently 75% complete, with construction tentatively scheduled for fall 2014.
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Attachment 1
________________________________________________________________________________________________________
EXHIBIT A
FY 2014-15 WATER ENTERPRISE FUND
FINANCIAL SCHEDULES
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Attachment 1
Exhibit A.1
5/20/2014
CHANGES IN FINANCIAL POSITION - WATER FUND
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Revised
Budget Budget Projection Projection Projection Projection Projection Projection
Revenues
Investment and Property Revenues 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Service Charges
Water Sales
Water Service Charges 16,131,900 17,019,200 17,614,900 18,143,300 18,596,900 18,968,800 19,348,200 19,735,200
Sales to Other Agencies 896,400 842,908 872,400 898,600 921,100 939,500 958,300 977,500
Development Impact Fees 662,000 678,600 701,100 724,300 749,800 776,200 805,500 835,900
AB 939 Reimbursement 128,400 131,000 134,700 138,100 142,000 146,000 150,400 154,900
Account Set-up Fees 101,400 103,400 106,300 109,000 112,100 115,200 118,700 122,300
Connection Charges and Meter Sales 27,000 27,500 28,300 29,000 29,800 30,600 31,500 32,400
Other Revenues 31,430 32,100 33,000 33,800 34,700 35,700 36,800 37,900
Total Revenues 18,028,530 18,884,708 19,540,700 20,126,100 20,636,400 21,062,000 21,499,400 21,946,100
Expenditures
Operating Programs
Public Utilities 13,166,727 13,003,700 13,228,000 13,497,900 13,788,300 14,051,300 14,324,500 14,606,300
General Government 1,268,800 1,167,004 1,199,700 1,229,700 1,266,600 1,304,600 1,343,700 1,384,000
Total Operating Programs 14,435,527 14,170,704 14,427,700 14,727,600 15,054,900 15,355,900 15,668,200 15,990,300
Capital Improvement Plan 4,574,023 2,546,130 2,836,600 2,621,000 1,935,700 1,956,300 3,175,000 2,211,400
Debt Service 2,191,400 2,195,300 2,192,600 2,194,000 2,194,200 2,197,500 2,152,600 2,157,500
Total Expenditures 21,200,950 18,912,134 19,456,900 19,542,600 19,184,800 19,509,700 20,995,800 20,359,200
Other Sources (Uses)
Projected Retirement Buyouts (70,200)(78,700)
PERS employer rate increase (20,800)(42,500)(43,600)(44,700)(45,800)(46,900)(48,100)
Projected Debt Proceeds
Other Sources (Uses)
Other Sources (Uses)(37,607)
Total Other Sources (Uses)(107,807)(99,500)(42,500)(43,600)(44,700)(45,800)(46,900)(48,100)
Revenues and Other Sources Over (Under)
Expenditures and Other Uses (3,280,227)(126,926)41,300 539,900 1,406,900 1,506,500 456,700 1,538,800
fund balance adj to CAFR (1,000)
Working Capital, Beginning of Year 14,845,300 11,564,073 11,437,147 11,478,447 12,018,347 13,425,247 14,931,747 15,388,447
Working Capital, End of Year 11,564,073 11,437,147 11,478,447 12,018,347 13,425,247 14,931,747 15,388,447 16,927,247
Reserve (20% of operating)2,887,100 2,834,100 2,885,500 2,945,500 3,011,000 3,071,200 3,133,600 3,198,100
Rate Stabilization Reserve (10% of sales revenue)1,702,800 1,786,200 1,848,700 1,904,200 1,951,800 1,990,800 2,030,700 2,071,300
Capital Reserve for WTP upgrade 4,000,000 4,250,000 4,500,000 4,750,000 6,000,000 7,500,000 8,000,000 9,500,000
Unreserved Working Capital 2,974,173 2,566,847 2,244,247 2,418,647 2,462,447 2,369,747 2,224,147 2,157,847
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Attachment 1
Exhibit A.2
PROJECTION ASSUMPTIONS - WATER FUND
CATEGORIES 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Utilities Service Fees CPI Projections 1.4%2.0%2.8%2.8%3.0%3.0%3.0%3.0%
Nacimiento Payment for Operating and Maintenance & Reserves $1,488,478 $1,477,000 $1,520,600 $1,565,700 $1,612,000 $1,659,700 $1,708,900 $1,759,700
Nacimiento Payment for SLO County Debt Service $4,713,700 $4,713,500 $4,714,300 $4,714,600 $4,718,500 $4,713,300 $4,713,800 $4,714,600
Debt Service - 2012 Water Revenue Bonds $564,800 $569,600 $568,600 $572,000 $569,600 $571,600 $567,800 $568,400
Debt Service - 2006 Water Revenue Bonds $1,034,600 $1,034,000 $1,032,800 $1,031,000 $1,033,600 $1,035,400 $1,030,900 $1,035,300
Debt Service - State Revolving Fund Loan - Water Reuse Project $525,500 $525,500 $525,500 $525,500 $525,500 $525,500 $525,500 $525,500
Projected Debt Service - 2021 Water Treatment Plant Upgrade $0 $0 $0 $0 $0 $0 $0 $0
Debt Service - 2009 Public Safety Radio System Upgrade $38,200 $37,600 $37,100 $36,900 $36,900 $36,500 $0 $0
Debt Service - 2009 Public Safety Communications Center $28,300 $28,600 $28,600 $28,600 $28,600 $28,500 $28,400 $28,300
Development Impact Fee Growth Rate (1)0.25%0.50%0.50%0.50%0.50%0.50%0.75%0.75%
Net Revenues/ Debt Service 1.33 1.85 2.05 2.32 2.18 2.17 2.25 2.25
Water Service Rate Increase 7.5%5.5%3.5%3%2.5%2%2%2%
(1) Development Impact Fee revenue is based on Resolution No. 9582 (2004) and calculated as follows:
Base year 2011-12 revenue 448,200
Adjusted base increased by projected CPI and DIF growth rate 662,000 678,600 701,100 724,300 749,800 776,200 805,500 835,900
Factors assumed to reduce development impact fee collection: base revenue adjustment for one-time large developments; maps
vested prior to establishment of current development impact fees, and; lower than 1% per year growth.
A study is currently underway to update the Water Development Impact Fees based on current demographics and revised cost estimates for Master
Plan infrastructure project. At this time, based on preliminary information, it is anticipated that the outcome of this study may include
recommendations for fee revisions to the water impact fees.
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ATTACHMENT 1
EXHIBIT A.3
CAPITAL IMPROVEMENT PLAN - WATER FUND
PROJECT DETAIL AND PHASING - PUBLIC UTILITIES
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
BUDGET BUDGET PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Water Treatment Plant
Major Facility Maintenance
Air Compressor Replacements 10,000 130,000
Stenner Canyon Raw Waterline Replacement 50,000 100,000
Floating Cover Replacements 80,000 500,000 450,000
Fleet Replacement: Compact Pickup 24,300
Fleet Replacement: Service Body Truck 59,100
Treatment Plant and Ozone Generation Upgrade 100,000 1,500,000
Fleet Replacement Forecast
Total 84,300 310,000 559,100 450,000 - 100,000 1,500,000 -
Water Distribution
Distribution System Improvements - Pipelines 1,350,000 1,110,000 1,420,000 1,170,000 1,125,000 1,457,400 1,600,000 1,800,000
Trench Repairs 300,896
Fire Lateral Reimbursement 105,000
Raise Valve Covers 91,625
Water Storage Reservoir Maintenance and Tank Repacement 30,000 360,000 357,500 730,000 255,000
Fleet Replacement: Portable Generators (50% share)152,900
Distribution Pump Station Upgrades 50,000 500,000 50,000 500,000 220,000 55,000 240,000
Fleet replacement: Pickup 22,500
Fleet replacement: Caterpillar Backhoe Loader & Attachments 136,400
Fleet replacement: Portable vacuum pump 55,800
Fleet replacement: Service body truck 110,700
Fleet Replacement Forecast 115,600
Street Reconstruction 2013 20,050
Monterey Waterline Replacement 59,840 391,430
Foothill/Chorro PRV Replacement 109,000
Total 1,957,411 2,173,330 2,277,500 2,060,700 1,880,000 1,836,300 1,655,000 2,211,400
Water Customer Service
Fleet replacement: Compact Pickups 24,300 51,400
Total 24,300 0 0 51,400 0 0 0 0
Utilities Services
Fleet replacement: Compact Pickup 24,300 25,200
Total 0 24,300 0 25,200 0 0 0 0
Administration and Engineering
Fleet replacement: Sedan 16,200 33,700
Fleet replacement Forecast 20,000 20,000
Mobile Equipment Lifts & Safety Stands 9,100
Total 16,200 9,100 0 33,700 0 20,000 20,000 0
General assumption for future planning purposes
Total Water Services CIP Requests 2,082,211 2,516,730 2,836,600 2,621,000 1,880,000 1,956,300 3,175,000 2,211,400
Shared Information Technology
City Website Upgrade (4% share)
Telemetry System Upgrade - Water Distribution Construction 1,500,000
Virtual Private Network (VPN) Replacement 15,500
Network Firewalls 11,500
Network Security Upgrades 6,500
Network Switching Infrastructure Replacement 17,000
Radio Handhelds and Mobile Replacements 26,200
Document Management System 5,200
Office Application Software Replacement (5% share)12,400
Enterprise Storage Growth 2,800
Storage Capacity Upgrade and Replacement 29,500
Total Share of Information Technology CIP 1,541,500 29,400 0 0 55,700 0 0 0
Carryover from 2012-13 950,312
TOTAL WATER FUND CAPITAL PLAN 4,574,023 2,546,130 2,836,600 2,621,000 1,935,700 1,956,300 3,175,000 2,211,400
WATER SERVICES
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Attachment 2
R ______
RESOLUTION NO. (2014 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
SETTING CHARGES FOR WATER CUSTOMER VALVES,
ADAPTERS, METER BOXES, AND LIDS
WHEREAS, it is the policy of the City of San Luis Obispo to review charges on an ongoing
basis and to adjust them as required to ensure that they remain equitable and adequate to fully cover the
cost of providing fixtures; and
WHEREAS, based on Assembly Bill 1953, effective January 1, 2010 the amount of lead
in specific plumbing fixtures was reduced from a regulated amount of no more than 8%, to a new
standard not to exceed 0.25%; and
WHEREAS, the City’s costs of procuring compliant equipment have and continue to
increase as a result of the new standard; and
WHEREAS, the charges set forth herein represent the actual costs to the City of
procuring compliant equipment.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The charges set forth in Exhibit “A” are hereby adopted, effective July 1, 2014.
Upon motion of _______________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 17th day of June, 2014.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia – City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick – City Attorney
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Attachment 2
EXHIBIT A to Resolution No. _______________ (2014 Series)
WATER CUSTOMER VALVES, ADAPTERS, METER BOXES AND LIDS CHARGES
Water Fixture Charges
Current Proposed
Customer Valve Costs Customer Valve Costs
1.0 inch $ 92.00 1.0 inch $ 104.00
2.0 inch $ 283.00 2.0 inch $ 330.00
Adapter Costs (Per Pair) Adapter Costs (Per Pair)
1.0 inch service / .58 x .75 inch meter $ 20.00 1.0 inch service / .58 x .75 inch meter $ 30.00
1.0 inch service / .75 inch meter $ 19.00 1.0 inch service / .75 inch meter $ 23.00
1.5 inch service / 1.0 inch meter $ 140.00 1.5 inch service / 1.0 inch meter $ 174.00
2.0 inch service / 1.0 inch meter $ 143.00 2.0 inch service / 1.0 inch meter $ 178.00
2.0 inch service / 1.5 inch meter $ 206.00 2.0 inch service / 1.5 inch meter $ 256.00
Water Meter Charges – Material only
Current
Proposed
Water Meter Size Cost Cost
¾" meter $138.55 $138.55
1" meter $177.92 $186.00
2" meter $1,296.00 $868.00
3" meter $1,532.00 Time and Material
4" meter $1,755.00 Time and Material
6" meter $2,586.00 Time and Material
Installation cost will be added to the meter material charges identified above based on time and
applicable labor rates.
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