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Pathways to Lasting Solutions
“The Longest Yard”
Water Budget Rate Structures &
The City of Boulder, ColoradoJanuary 25, 2007
© 2006 Malcolm Pirnie, Inc. All Rights Reserved
Pathways to Lasting Solutions
Today’s Discussion
Rate Structures in GeneralWater Budget Rate StructuresWater Budgets and the CityDiscussion
Pathways to Lasting Solutions
What is a Rate Structure?
Typically consists of two componentsService charge
• Fixed charge, Readiness to Serve
• Recover customer billing and metering costs
Volume charge• Unit charge based on amount of water used
• Variety of volumetric rate designs available
The design and organization of billing charges by customer class in order to recover revenue requirements
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Uniform Rate
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Decreasing Block Rates
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Seasonal Rate
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Uniform Rate Decreasing Block RatesIncreasing Block Rates
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Uniform Rate Decreasing Block RatesWater Budget Rates
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Flat
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The Rate Structure Continuum
Least MostConservation
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Water Budget Rates Designed for resource efficiency Budget individualized for each customer’s
indoor usage and outdoor usage Retains increasing block structure Volumetric block thresholds dependent on
customer’s usage patternsIndoor allowanceOutdoor allowance
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Water Budget Rate Components Indoor allowance
People per householdBuilding square footageNumber of bedrooms/bathrooms
Outdoor allowanceIrrigable areaLot square footageWeather considerations, evapotranspiration
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City of Boulder Water Budget Rates Drought of 2002 - 2003 Mandatory water restrictions instituted Goal:
Reduce water use by 25 percent, or 1.19 million gallons between May 2002 and April 2003
Goal met by November 2002 when 1.296 million gallons was conserved
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City of Boulder Water Budget Rates Water restriction prompted Citizen involvement
More flexibility during drought (when and how much)Preferred to know specific quantity of water neededMore education
City began investigating alternative rate structures in June 2003Hired consultant to review various structures Involvement included
• Citizens• Water Resource Advisory Board• City Council
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City of Boulder Water Budget Rates Staff, WRAB selected water budget structure
from number of alternatives City Council endorsed water budget rate structure
in December 2004
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Boulder Water Budget Rate Structure 5-tiered increasing block structure (volumetric)
Rates for each block are the same for each class
Block threshold based on each customer’s monthly budget
Block threshold stated as percent of total monthly budget
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Boulder Water Budget Rate Structure Budget calculation based on customer class
Residential – Indoor allowance + Outdoor allowance
Multifamily – Indoor allowance + Outdoor allowance
Nonresidential – Average Monthly Usage (AMU)Irrigation – Outdoor allowance based on irrigable area
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Boulder Water Budget Rate Structure
Rate (per 1,00 gal)
Block Size(% of budget)
Block 1 $1.95 (3/4 x base rate) 0% - 60%
Block 2 $2.60 (the "base rate") 61% - 100%
Block 3 $5.20 (2 x Base Rate) 101% - 150%
Block 4 $7.80 (3 x Base Rate) 151% - 200%
Block 5 $13.00 (5 X Base Rate) Greater than 200%
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Boulder Residential Water Budget Rates Indoor allowance
Single family – 7,000 gallons/monthMultifamily – 4,000 gallons/month/unit
Outdoor allowance Irrigable area “pervious area”
• Single family – 3-tiered gallons/sq ft threshold basis– Tier 1: 0 to 5,000 sq ft @ 15 gal/sq ft– Tier 2 : 5,001 to 14,000 sq ft @ 12 gal/sq ft– Tier 3: >14,000 sq ft @ 10 gal/sq ft
• Multifamily – 15 gallons/sq ftAllocated on a monthly basis using ET indexET Index = Evapotranspiration Index
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Percentage of Monthly Outdoor Budget
0%
5%
10%
15%
20%
25%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Based on evapotranspiration index
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Boulder Nonresidential Water Budgets Commercial/Industrial
Average Monthly Usage (AMU) Irrigation
Irrigable area “pervious area” – 15 gallons/sq ftAllocated on a monthly basis using Et indexEt Index = Evapotranspiration Index
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Single Family Example Pervious area = 6,000 sq ft Indoor Annual Budget:
7,000 gal/month * 12 months = 84,000 gallons Outdoor Annual Budget:
5,000 sq ft * 15 gallons/sq ft = 75,000 gallons
+ 1,000 sq ft * 12 gallons/sq ft = 12,000 gallons
Total Outdoor Allowance 87,000 gallons
Total Annual Budget 171,000 gallons
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Monthly Water Budget (indoor/outdoor)
0
5,000
10,000
15,000
20,000
25,000
30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Gal
lons
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Single Family Example (continued) July usage = 30,000 gallons July budget:
7,000 gallons + 87,000 gallons * 20%July budget = 25,000 gallons
July volume charges for 30,000 gallons usage:Block 1: 0 to 15,000 gallons: 15 Kgal * $1.95 = $29.25Block 2: 15,000 to 25,000 gal: 10 Kgal * $2.60 = $26.00Block 3: 25,000 to 38,000 gal: 5 Kgal * $5.20 = $26.00
Total July Volume Charges: $81.25
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What’s in Store for 2008 Continue to monitor changes in usage patterns Irrigable area adjustments Right-of-Way adjustments Reviewing commercial and industrial budget basis
Average monthly usageHistorical monthly usageIndoor/outdoor allocations
Continued community involvement
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Discussion