Pre-Submittal Conference

Comprehensive Cost of Service and Rate Design Study

July 1, 2013

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Comprehensive Cost of Service and Rate Design StudyPage 2

• The purpose of the rate design study is to provide SAWS with information regarding the rate structure for water delivery, water resource development, recycled water, and wastewater

• Review by Rate Advisory Committee (RAC) comprised of ten citizens nominated by City Council with five SAWS Board-appointed at-large community members; the committee will:

– Review, discuss, and analyze rate structure, fee structure, and charges in public meetings

– Assist staff in selection of Rate Study Consultant

Purpose

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Rate Advisory Committee(RAC)

Members would represent different parts of our customer base Examples:

Structure

– Council Districts

– Neighborhood Association– Business Leader/Chamber– High User– Developer / Economic

Development– Academics / Religious

– Industrial (SAMA)– Apartment/Multi Family– Environmentalist– Community Activist – At Large – Outside City Limits– Affordability Customers

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Major Issues to be addressed:• Overall rate structure

• Integration of SAWS and District Special Project (DSP – former BexarMet) water rate structures

• Rate development - Cost of service

• Wholesale customers (water supply/ wastewater)

• ICL/OCL rate differential

• Recycle Rates

• Apartment Rate Class

• Sewer Surcharge

• Affordability Program

• Special Funding process for Sanitary Sewer Overflows (SSO) and Water Management Plan (WMP)

Proposed Rate Analysis

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Water Delivery Issues• Raw water rate • Seasonal rate • Conservation Rate• Drought Surcharge rates

Proposed Rate Analysis Issues

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Wastewater Issues

• Winter average • Surcharges

– Total Suspended Solids (TSS) / Biochemical Oxygen Demand (BOD)

– Fats / Oils / Grease

• Waste Hauling• SSO Funding

Proposed Rate Analysis Issues

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Water Supply Issues

• Conservation rate • Recycle rate • Water Management Plan Funding

Proposed Rate Analysis Issues

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Rate Structure Design Objectives

Rate structure design objectives include: Cost of service recovery Minimizing customer impact Legality Consumption/Demand management Rate Stability Revenue Stability Ease to understand Ease to update Ease to implementation Affordability to disadvantaged customer

To be ranked by the City Council, SAWS Board and the RAC

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Schedule

• Written questions from potential proposers due - 8 Jul 2013

• Answers to questions posted on SAWS website – 15 Jul 2013

• RFP Responses due – 24 Jul 2013

• SAWS Board appoints RAC Members – Aug 2013

• Selection process for Rate Consultant – Aug/Sep 2013

• Board selects Rate Consultant – Nov 2013

• Orientation meetings with Consultant – Nov 2013

• Consultant meets with RAC for first time – Dec 2013

Tentative

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Schedule – cont.

• RAC Meeting - SAWS issues and challenges – Dec 2013

• City Council Rate Study Priorities Input – Jan 2014

• SAWS Board Rate Study Priorities Input – Jan 2014

• RAC Meetings – Rates discussions – Feb to Sep 2014

• Brief SAWS Board about RAC Results – Sep 2014

• Brief City Council about RAC Results – Sep 2014

• SAWS Board considers new Rate Structure – Oct 2014

• City Council considers new Rate Structure – Oct 2014

Tentative

Pre-Submittal Conference

Comprehensive Cost of Service and Rate Design Study

July 1, 2013