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Home My WebLink About2023-11-20 Study Sessionrqst�;Iellaei:�, C o u rii, &H S t u d y S e s s 01 o n A ,,le n d a ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, November 20,2023 COUTCH CIray:1, �-�Wf Street View on Channel 9 or Channels 180 and 181 (Charter Communications) or live stream via rvtv.sou.edu select RVTV Prime. HELD HYBRID (In -Person or Zoom Meeting Access) Public testimony will be accepted for both general public forum items and agenda items. Please complete the online Public Testimony Form (ashiand.or.us/council), for WRITTEN and ELECTRONIC testimony only. Indicate on the Public Testimony Form if you wish to provide WRITTEN testimony, or if you wish to speak ELECTRONICALLY during the meeting. Please submit your testimony no later than 10 a.m. the day of the meeting. 5:30 p.m. Study Session 1. Public Input (15 minutes - Public input or comment on City business not included on the agenda) 2. Water Management and Conservation Plan Update 3. Water Utility Rates Overview 4. City Manager Process & Next Steps 5. Adjournment of Study Session In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager's office at 541.488.6002 (TTY phone number 1.800.735.2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). Page 1 of 1 IV ~ Agenda Item Water Management and Conservation Plan Update From Scott Fleury PE I Public Works Director Item Type Requested by Council 1:1 Update 0 Request for Direction El Presentation Fx] SUMMARY Before the Council is an update on development of the required Water Management and Conservation Plan (WMCP) document. This is a regulatory document overseen by the Oregon Water Resources Department (OWRD). The critical component of this WMCP is documenting the need for full use of the City's Lost Creek Reservoir municipal water permit. POLICIES, PLANS & GOALS SUPPORTED VISION STATEMENTS for Success: * Ashland is a resilient, sustainable community that maintains the distinctive quality of place for which /t/xknown ° N/ewill continue to be a unique and caring city that stresses environmental conservation, fosters artistic expression, and inopen tonew ideas and innovation ~ We will plan and direct our efforts to fulfill this Vision for the long term with a constant view toward being on open, welcoming community for oil with /zpositive economic future CEAP Goals: NaturalSystems: Air, water, and ecosystem health, including opportunities to reduce emissions and prepare for climate change through improved resource conservation and ecosystem management. Strategy NS-2: Manage and conserve community water resources Strategy NS-3: Conserve water use within City operations Department Goals: � Maintain existing infrastructure tomeet regulatory requirements and minimize life -cycle costs ~ Deliver timely life cycle capital improvement projects ° Maintain and improve infrastructure that enhances the economic vitality ofthe community ° Evaluate all city infrastructure regarding planning management and financial resources PREVIOUS COUNCIL ACTION The Council previously awarded GSI Water Solutions a Professional Services Contract to develop the WMCP. December 6, 2022 Business Meeting Staff Report (WMCP December 6, 2022 Business Meeting Minutes BACKGROUND AND ADDITIONAL INFORMATION A municipal WMCP provides a description of a water supplier's use, management, and conservation of its water resources. Preparation of a WMCP is intended to represent a pro -active evaluation of the management Page lof 5 and conservation measures that suppliers can undertake. The planning program requires municipal water suppliers to consider water that can be saved through conservation practices as a source of supply to meet growing demands if the saved water is less expensive than developing new or existing supplies. As such, a WMCP represents an integrated resource management approach to securing a community's long-term water supply. Effective water management requires an evaluation of the adequacy and reliability of water supplies to meet current and future needs, identification of planned modifications in water systems, and development of new or existing water supplies. WMCPs provide information important for long-term water resources planning and management. The plans may also provide support for applications for new water use permits, water right transfers and permit amendments, o|oinno of beneficial use necessary to certificate existing permits, requests for permit extensions of time, and approvals of water exchanges and reservations of water. A WMCP is broken into sections covering the following topics: l. Water Supplier Description 2. Water Conservation 3. Water Curtailment 4. Water Supply The WMCP is a requirement of the Oregon Water Resources Department (OWRD) and is to be updated every ten years followed by submission of five-year progress reports. This WMCP is an update to the City's first WMCP approved by OWRD in 2014. The City's 2014 WMCP is in effect until spring of 2024 and the updated WMCP that is presented to the Council must be approved by OWRD by that time. Staff will submit this WMCP toDVVRDbythe end of2O23. Plan Development Process GSI Water Solutions, Inc. (GSI) was the lead consulting agency for plan development. Plan development included noton|yrneetingiheOrogonAdrniniotrohveRu|e/O4R\requirernentoforoVVK4CP/O4R6AO-O88\,buto|oo included a climate impact analysis on the City's water supplies as part of the supply and demand analysis, Public Works staff also incorporated o Management Advisory Committee (MAC) to oversee the plan development. Medford Water Commission staff, Julie Srnitherrnon and CodySoroggins also participated in the plan development as they have a robust knowledge of the City's current conservation program. The MAC and MWC input were invaluable to development of the conservation section and plan overall. MAC members who participated inplan development were previousmembers ofthe Ashland Water Advisory Committee during the 2012 and 2020 Water Master Planning process and are extremely familiar with water issues faced bythe City. Staff would like to thank the members of the MAC who provided a robust dialogue and feedback loop over the course offour /4\meetings with the consultants. MAC Members: John Williams Pot4k|in Joseph Graf Page 2 of 5 Larry Cooper WATER MANAGMEENT AND CONSERVATION PLAN OVERVIEW Water Supplier Description This section providesodesormbonofthewotersupp|ier,vvoteruVoternsupo|ies,demonds,popu|otioms, water rights, and water users. Ashland had S,4l3water service connections in2O22, which provided water toupopulation of approximately 21,642 people. The City's service area includes the area within the City's municipal boundary, The City's primary water source is Ashland Creek and water impounded in Reeder Reservoir sourced from East and West Ashland Creeks. Stored water from Reeder Reservoir and Ashland Creek natural streamflow is gravity fed to the City's water treatment plant (WTP). Following treatment, water is conveyed from the plant tothe City'owater distribution system. This section providesodescription ofwater conservation program elements and compares previous conservation measures in a benchmark breakdown found in the 2014 WMCP. £GLstaff and the MAC spent a majority of two meetings discussing the current conservation program and additional conservation program measures the City should consider as part of the WMCP update. The elements of the discussion and associated outcomes are referenced in a GSI memorandum to the City titled "City of Ashland Water Conservation Program Expansion and Enhancements" provided in Appendix Cofthe VVMCp. Water Curtailment This section providesodescription and overview ofthe Citv'swater curtailment program. Curtailment planning is the development of proactive measures to reduce water demand during periods of temporary shortages of supply. The goal of the WMCP is to define objective criteria and actions to prepare the City for management of water supplies in these types of events. The VVMCP addresses the need to maintain essential public health and safety while applying curtailment rneouunan in on equitable manner that minimizes irnpoota on economic activity and lifestyle tothe greatest degree possible. This may include more restrictions on uses deemed less essential. Water Supply This section providesforecoutedvvotersuppk/ondoaoocioteddenlondinoon]uncbonwithpopu|otiongrowth and climate change impacts from 2023 to 2073. Two different climate scenarios were modeled for the Ashland Creek watershed as part of the climate analysis and they both show expanded irrigation seasons with more wotorb*inguoedinthenhou|derrnonthoof4pri|/k4uyondSepternber/Octoberbecouaeofinoreosed Page aof5 ' A critical component of the supply/demand analysis is to show when and how the City intends to use the City's 1,000 acre-feet Lost Creek Reservoir storage right. Currently 546 acre-feet of the 1,000 acre-feet is certificated and the supply/demand analysis shows the City using the remaining water as part of the overall demand projection bv2047,uareferenced inFigure lbelow. The City uses the To|ent-Auh|ond-Phoenixpipeline /r4p\to convey this water tothe City. 1: Demand Pnoiection 2023-2073 I �� CD 0�� - ------ 2047 Projected TAP �� Ashland Creek Natural Flow and Reeder Reservoir m TAP Climate and Environmental Policy Advisory Committee (CEPAC) The plan was referred to CEPAC by the MAC and CEPAC commented on the plan and associated climate analysis at the October 111h, 2023 meeting, Both the MAC and CEPAC support the plan, climate analysis and conservation related components. The CEPAC also supports moving forward with the hiring of a climate analyst position Lofurther the conservation program. The CEPAC provided the following upon review and discussion of the WMCP: " CEPACendorsed the plan ingeneral ° CEPAC feels that there should be more detailed and explicit and aggressive conservation measures as part of the plan, but that developing a full conservation plan to encompass these aspects would unduly delay the presentation of the plan to the state of Oregon, and that this delay should not happen. CEPAC recommends that a group of interested and concerned citizens from the CEPAC, and the Water Action Team of the Ashland Climate Collaborative and other interested and concerned citizens, along with the City's climate analyst should study and make specific recommendations about further water conservation measures, and Page 4of5 � that these recommendations could be added to the plan in the future as an amendment to the plan after passage ofthe specific conservation recommendations bvCouncil. CEPAC, and the members of the MAC strongly recommend that the City resume funding for a water conservation director position and post the position and perform an appropriate search for a qualified candidate. Lastly, the CEPAC endorses the City's tiered pricing for water, with the summer time additional tier, and CEPAC recommends consideration be given to increasing rates in in the highest tiers to encourage conservation among the highest water volume users. FISCAL IMPACTS The original contract amount awarded to GSI Water Solutions was $100,700 and to date $Q0,8SOhas been spent on project development. The remainder of the contract amount will be spent towards participation in the Council meeting, preparing and submitting the WMCP for affected local government review, and revising and finalizing the WMCP based on comments from OWRD during OWRD's review process, osneeded. DISCUSSION QUESTIONS Does the Council have any questions about the final draft of the WMCP? SUGGESTED NEXT STEPS Next steps include submittal of the WMCP to OWRD for review and approval. This will start a new cycle and the City will be required to submit o five (5) year progress report to OVVRD and then perform o formal plan update in ten /l0\years /2O3u\. Following the presentation to Council, staff will send a copy to local jurisdictions for review as required and outlined inAppendix 4- REFERENCES & ATTACHMENTS Page 5ofu Water Management and Conservation Plan Z I T Y 0 F ASHLAND October 2023 Prepared by: GSI Water Solutions, Inc. 1600 SW Western Boulevard, Suite 240 Corvallis, OR 97333 541.753.0745 www.gsiws.com IF tip V JA This page intentionally left blank. Contents 2023 Water Management and Conservation Plan ExecutiveSummary ................................................................................................................................... 1 Description of Municipal Water Supplier ............................................... .............................................................. 1 WaterConservation ........................................................................................................................................................ WaterCurtailment ........................................................................................................................................................... WaterSupply ..................................................................................................................................................................... 4 1' Municipal Water Supplier Plan Elements ................................................................................ 1-1 11 Introduction ...................................................................................................................................................... 1-1 1.2 Plan Requirement ........................................................................................................................................... 1-1 1] Plan Organization ........................................................................................................................................... 1-1 1,4 Affected Local Governments ...................................................................................................................... 1-2 15 Plan Update Schedule ................................................................ .................................................................. 1-2 16 Time Extension ............................................................................................................... ................................. 1-Z 2' Municipal Water Supplier Description ..................................................................................... 2-1 21 Terminology ................................................................................. .................................................................... 2-1 2.2 Water Sources .................................................................................................................................................. 2-2 2-5 Current Service Area Description and Population .............................................................................. 2-] 2.4 Interconnections with Other Systems ..................................................................................................... 2-7 2.5 Intergovernmental Agreements and Contracts for Water Supply ............................................... 2-7 2.51 Partner Cities ............................................... .................................................................................. 2-7 2.52 City ofMedford ............................................................................................................................. Z-7 2.53 Bureau ofReclamation ............................................................................................................... 2-7 2.5.4 Talent Irrigation District ............................................................................................................. 2-B 2.5.5 Talent and Phoenix ...................................................................................................................... 2-8 2.5 Demand .............................................................................................................................................................. 2-8 2.6] Annual Demand ............. ...................... .......................................................................... ....... 2-0 2.7 Customer Characteristics and Use Patterns ............................................................. —...................... 2-1D 2.7] Categories ofAccounts ............................................................................................................ 2-10 2'7.2 Total Consumption .................................................................................................................... 2-11 2.7.3 Consumption b»Account Category .................................................................... .............. 2-12 2.7.4 Residential Per Capita Demand ..................................................................... ....................... 2-15 2.7.5 Indoor and Outdoor Water Use ................................................................................. .......... 2-15 2].6 Largest Water Users ............... ................................................................. ................................. -16 2.8 Water Loss ......................................... ............................................................................................................. 2-17 2.9 Water Rights .................................................... —........................................................................................... 2-18 2.9.1 Summary ofMunicipal Water Rights .................................................................................. 2-1O 2.92 Summary of Non -Municipal Water Rights ............. ........ --......................................... 2-2O 2]0 Aquatic Resource Concerns ...................................................................................................................... -27 211 Assessment ofWater Supply .................................................................................................................... 2-28 2]2 System Description ............................................................................................. ............................. ........ 2-30 3- Municipal Water Conservation Element .................................................................................. 3-1 3] Introduction ...................................................................................................................................................... 3-1 3.2 Progress Report ............................................................................................................................................... 3.3 Use and Reporting Program ..................................................................................................................... 3-13 City of Ashland Contents 2023 Water Management and Conservation Plan 3.4 Required Conservation Measures .......................................................................................................... 3-1] 3.4.1 Annual Water Audit ......................... ..................... ................................................................... 3-13 3.4.2 System -wide Metering ............................................................................................................. 3-14 3/43 Meter Testing and Maintenance ........................................................................................... 3-14 3/44 Water Rate Structure ....................................... ......................................................................... -15 3.4.5 Water Loss Analysis ............................. .................................................................................... 3-15 3.4.6 Public Education ................................................................ ............................. ........................... 3-16 3.5 Additional Conservation Measures ............. .......................................................................................... S-18 3.51 TechniCalandHnancialAssistancePrognanos---------------------.. 3-18 3.5.2 Supplier -Financed Retrofit orReplacement nfFixtures ..... ......................................... 3-19 3.53 Rate Structure and Billing Practices that Encourage Conservation ... ..................... 3-20 3.5'4 Water Reuse, Recycling, and Non -potable Opportunities .................. ...................... ]-20 3]5 Other Measures ............................................................................................................................................. 3-20 4. Municipal Water Curtailment Element .................................................................................... 4-1 4.1 Introduction ............................................................................................................. ........................................ 4-1 42 History mfWater Supply Deficiencies and Capacity Limitations ................................................... 4-2 4.3 Capacity Limitations and Drought Response .............................. ........................................................ 4-2 4.4 Curtailment Stages and Initiating Conditions ...................................................................................... 4-9 4.5 Curtailment Plan Implementation ............................................................................. .............................. 4-4 4.5] Stage 1(Internal Planning) ................ ....................................................................................... 4-4 4.52 Stage 2(Vo\unfan) ........................................................................................ ............................. 4-4 4,5.3 Stage 3UNandotomi.................................................................................................................... 4-6 4`54 Stage 4UNandatom4......... —.................................................... -............................................ 4-9 4.5.5 Stage 5ONandatnmi................................... .............................................................................. 4-11 4.6 Water Allocation Table ................................................................................................. ............................. 4-13 4.7 Authority ................................................................................... ...................................................... .............. 4-14 4.8 Curtailment Communication .................................................................................................................... 4-15 4.9 Drought Declaration .................................................................................................................................... 4-15 S. Municipal Water Supply Element ............................................................................................. 5-1 51 Delineation ofService Area ........................................................................................................................ 5-1 5.3 Population Projections ---',---------------------------_-------5-1 5.3 Demand Projections --------------------------------------------.5-2 5.3] Conservation Measures' Impacts 0nDemand ...................... ............................................ 5-2 5].2 Climate Change Impacts onDemand ................................................................................... 5-2 5.4 Schedule to Exercise Permits and Comparison 0fProjected Need to Available Sources ... 5-5 5.5 Alternative Sources ............................. -....................... .............................................................................. 5-9 S.6 Quantification ofMaximum Rate and Monthly Volume ................................................................ 5-1O 57 Mitigation Actions under State and Federal Law ........... ................................................................. 5-1O 5.8 New Water Rights ........................................................................................................... ............................. 5-1O City of Ashland Contents 2O23Water Management and Conservation Plan Index of Exhibits Exhibit ES-1.Water Conservation Benchmarks ................................................................................................................... 3 Exhibit E6-ILCurtailment Plan Stages and Thggeo-....................................................................................................... 4 Exhibit ES-5.U(SHPopulation Projections -------------------------_----.--.'-------5 Exhibit ES-4.Ashland's Projected AnnualDennand-----------------------------------5 Exhibit ES-5.Comparison ofDemand and Supply through 2075................................................................................ 6 Exhibit2-1.Sources of Supply .................................. .................................................... ...................................................... 2-S Exhibit 2-2. Ashland's Service Area and Distribution System Schenoadc............................................................ Z-5 Exhibit 2-].Water Demand, 2OO5to2O22....................................................................................................................... 2-9 Exhibit 2-4.Annual Demands, ZOO5-2022................................................................................................................... 2_1O Exhibit 2-5.Average and Maximum Day Demands, 20O5-2O22.......................................................................... 2-1O Exhibit 2-6. Count ofAccounts hmCustomer Category, 2022................................................................................ 2-11 Exhibit 3-7.Annual Consumption (NG)Table, 2O14-2O22............................................ ........................................ 2-11 Exhibit 3-8.Annual Consumption (NG)Chart, 2O14-ZO22...................................................................................... Z-12 Exhibit 2-9. Number of Service Connections and Percent Annual Water Use by Customer Category, 2022 -............................. ... ... ........................................................................ ..................................................................... 3-13 Exhibit 2-1O.Annual Consumption bvCustomer Category, 2014-202Z............................................................. 2-14 Exhibit 2-11.Monthly Consumption b«Customer Category, 2O18-2O22.......................................................... 2-15 Exhibit 2-12.Annual Indoor and Outdoor Water Consumption h«Customer Category, 2O18-2022..... 2-16 Exhibit 2-1IConsumption ofTop 1OWater Users, March ZO21through February ZO22.......................... 2-17 Exhibit 2-14`Water Audit, i2018-2O22............................................ ................................................................................. 2-18 Exhibit2-1S.Water Rights Table .... ................................................................................................................................... -23 Exhibit 2-1(iListed Fish Species Potentially Located inAshland Creek .--------------------.2-28 Exhibit 3-1.Progress Meeting 2O13Conservation Benchmarks .............................................................................. 3-3 Exhibit 3-2.Water Savings Estimate, 2O19..................................................................................................................... 3-21 Exhibit 4-1.Curtailment Stages ofAlert and Initiating Conditions ......................................................................... 4-3 Exhibit4-2.Water Allocation Table .................................................................................................................................. 4-14 Exhibit 5-1.Projected City ofAshland UG8Population, 2O23-2O73................ -................................................. 5-2 Exhibit 5-2.Sensitivity of Monthly Water Demand to Daily Maximum TennperatUne................................... 5-3 Exhibit 5-3. Monthly Climate Change Demand Factors, RCP 4.5 Scenario .......................................................... 5-4 Exhibit S-4.Monthly Climate Change Demand Factors, RCP 8.5 Scenario ............................................... .......... 5-4 Exhibit 5-5. Projected Water Demand, RCP4.5 Scenario, 2O2]-2079............................... ................................... 5-5 Exhibit 5-6.Projected WaterOernand,RCP8SScenahc\ZO23-2073----------------------5-5 Exhibit 5-7. Projected Percentage Change from Baseline in the Combined East and \AA*st Fork Ashland Creek Basin Discharge, RCP 8.SScenario .......................................................................................................... 5-6 Exhibit 5-1Comparison ofDemand and Supply through 2O73,RCP O.5Scenario ......................................... 5-8 City of Ashland Contents 2023 Water Management and Conservation Plan Appendix A - Letter toAffected Local Government and Responses Appendix B-VVaternoa5terAssessment VfPriority Water Rights on Ashland Creek Appendix C-Ashland Conservation Program Technical Memorandum Appendix D-VVaterRaLes Appendix E- List of Customer -Focused Conservation Measures Appendix F-Curtailment Plan Contact List Appendix G- Projected Climate Change Impacts on Water Demand and Supply for City of Ashland City of Ashland iv Executive Summary Draft 2U23Water Management and Conservation Plan This banupdate ofthe City mfAshland's (Chv'snrAshland'dZO13Water Management and Conservation Plan (VVMCP) and the Cit«s second VVK4[P. This WMCP satisfies the final order issued by the Oregon Department of Water Resources (OWRD or Department) approving the City's 2014 WMCP that required the City tosubmit an updated VVMCP to C)VVRD within 10years. ThisVVMCP also meets a condition in the final order approving an extension of time for Permit S-54337 issued by{}VVRDthat requires submittal of an updated WMCP to OWRD within 3 years of issuance (August 26, 2025). In addition to meeting these requirements, the purposes of this WMCP is to: (1) guide the development, financing, and implementation ofwater management and conservation policies, programs, and practices that ensure long-term sustainable water use by the City and its customers and (2) assess the City's water supply and document a plan to meet the Cih/'s future water needs. This WMCP is submitted in compliance with the requirements of the Oregon Administrative Rules (OAR) for VVK4CPsadopted by the Water Resources Commission in 2018 (OAR Chapter 690, Division 86). Description �^ � Municipal ~ U Water Supplier x��K�� m u�u��u �w��-��n�er Ashland had 9,413 water service connections in 2022, which provided water to a population of approxinnately21,542 people. The CitV's service area includes the area within the [itv's municipal boundary. TheCit»'s primary water source is Ashland Creek and water impounded in Reeder Reservoir sourced from East and West Ashland [reeks. Stoned water from Reeder Reservoir and Ashland Creek natural stnearnf|ovv is gravity fed to the CitY'y water treatment plant (VVTP). Following treatment, water is conveyed from the plant to the City's water distribution system, Water right Certificate 10843authorizes storage ofupto880acre-feet /AF ofwater from Ashland Creek inReeder Reservoir for municipal purposes, and Certificate 1O856authorizes the use ofthis stored water and Ashland Creek natural streamflows for municipal use at a rate of up to 15 cubic feet per second (rfs). The City holds Certificate 15998, which authorizes the use of up to 12,43 cfs from Ashland Creek as well as an additional 22 certificated water rights authorizing diversions from Ashland Creek for municipal purposes. The City holds three other water rights for non -municipal purposes. The City supplements these supplies with water stored in Lost Creek Reservoir located on the rnainstern Rogue River. Combined, Certificate 96166 and PerrnitS-54337 authorize Ashland's use ofupto 1,000 acre-feet per year of stored water. Water released from the reservoir is rediverted and treated by Medford Water /K4W0 for the City under contract with K4VV and conveyed to the City via the Cities of Ta lent-Ashla nd -Phoenix (TAP) intertie. These sources of supply (Reeder Reservoir/Ashland Creek and Lost Creek Reservoir) have been adequate and reliable to meet the [ity's system demands. The City also has a contract with the U.S. Bureau of Reclamation (BOR) to receive water from the Howard Prairie Reservoir owned and operated by the BOR. This water is conveyed via a canal yYatenn to Ashland by the Talent Irrigation District OID\. This source of supply can be unavailable in low-water years; as a result, the City does not consider this a reliable source of supply for planning purposes in this VVK4[P. City of Ashland ES-1 Executive Summary Draft 2023 Water Management and Conservation Plan Water system demand has decreased from 2005 to 2022 despite population growth in the service area. This trend is observed in the calculated per capita daily demand, which was 160 gallons per person per Water system demand iscomposed primarily of water used (metered consumption) by theCity's customers. Of the City's seven customer categories, the single-family customer category accounted for 78.7 percent of all accounts and consumed approximately 49 percent of all water consumed by the CitY's customers in 2022. The cononnencieL multifamily, and irrigation customer classes made up the bulk ofthe remainder ofconsumption at43.1 percent iDthat year, Water loss is also another component of demand, and the City has consistently observed water losses below 10 percent since at least 2003, except for in 2022. In 2022. the City learned of rna|nr leak that was subsequently located and repaired in2O23. ��` Conservation ��ou�� on The City has an extensive and robust water conservation program designed to provide ways for all its customers to use water more efficiently both indoors and outdoors. For example, the City employs financial incentives; offers on -site services, such as in -home water audits; and maintains an education outreach program, among other program measures that encourage water efficiency. The results of the City's efforts are borne out in ongoing decreases in per capita water use and reductions in peak day demands over time. Over the next 5years and beyond, the City intends toexpand and enhance its conservation program measures through implementation of conservation benchmarks, as described in Exhibit ES-1. To ensure the City's conservation program continues to meet the needs of its customers, the City convened a Management Advisory Committee (MAC) composed of Ashland water customers and a representative from the Ashland City Council. The MAC identified and prioritized 30 conservation measures and reviewed nine reuse projects, some of which are benchmarks identified in this VVK4[P. The City is also in discussions with other water providers in the area to coordinate regional water conservation programming and messaging. City of Ashland ES-2 Executive Summary Draft 2023 Water Management and Conservation Plan Exhibit ES-1. Water Conservation Benchmarks Conservation Topic Benchmark(s) Annual Water Audit 0 Continue to conduct annual water audits. 0 Within the next 5 years, resume facilities water audits as resources allow and, upon completion, seek to modify practices to reduce water use based on the audit System -wide a Continue torequire exisdwa ter /yystemoonnecdonsremainmeteedondnew Metering customer water connections are metered . Meter Testing and ° Establish a5-yeartesting program for master meters by202Sand begin testing Maintenance these meters in2O26. Master meters will berma|ibrat d'nepaired.o/epbcedas needed. ° Continue torepair orreplace service meters upon failure. Water Rate Structure ° Continue tobill customers ' based inpart, onthe volume ofwater consumed and on a monthly basis. Water Loss Analysis ° If losses continue to exceed 10% in 2024, the City will perform a water loss analysis and inform 0VVkDofthe results within 2years ofissuance ofafinal order approving this VVM[P. Public Education ° Maintain the existing level of public education programming as described, with modifications to the program over time to accommodate shifts in priorities and available resources. ° Re -instate or expand the City's public education program over the next 5 years as described. Technical and ° �Naintainexisting technical and financial assistance measures asdescribed. Financial Assistance ° Within 2 years, begin performing irrigation system evaluations at City parks. Programs ° Within 2 years, establish and implement a program to provide financial incentives for irrigation contractors to insta||water'wise landscapes. Supplier -Financed ° Maintain supplier -financed retrofit and replacement measures. Retrofit or ° Within 2yoars' develop and implement grant program eligible to low-income Replacement of residents focused onthe installation ofwater efficient fixtures. Fixtures Rate Structure and a Continue billing customers monthly for the amount ofwater used, at least in part. Billing Practices 0 Over the next 2 years, consider revising the commodity charges to make them more progressive. Water Reuse, ° Continue promoting gmywaterand rain catchment systems. Recycling, and Non_ ° Within the next Syears, using the list oflarge-scale reclaimed water use projects potable Opportunities (Exhibit ' 2ofAppendix[)�considerfurtherrtudyofoneormureofthemost feasible projects. Water Curtailment Ashland has developed acurtailment plan that describes its response tospecific water -shortage events. The curtailment plan presented in this WMCP has five distinct stages that increase in order of severity. Each stage istriggered by one or more initiating conditions. The curtailment stages and initiating conditions are summarized in Exhibit ES-2. Initiating conditions and curtailment measures are described in detail in Section 4 of this VVK4[P. City of Ashland ES-3 Executive Summary Draft 2023 Water Management and Conservation Plan Exhibit ES-2. Curtailment Plan Stages and Triggers Curtailment Stages (Curtailment Initiating Conditions Response) Stage (Internal Aseries ofindicators suggest that afuture shortage ispossible; these may include drought - Planning) related conditions or foreseeable operational factors that prevent the City from meeting demand inwhole orpart. Continued and/or further indicators raise `concerns about Stage 2 ,Voluntary) unless demand levels are reduced, or Sustained demand reaches or is anticipated to reach 90% of supply or delivery capacity. Indicators show that supply and/or delivery capacities are strained to meet current demand levels; these may include: Stag 3(Wandatory) Sustained demand reaches misanticipated toreach 95% of supply mdelivery capacities, or Water storage facilities are not routinely refilling, and City Manager determines that continuation could result in inability to meet fire protection or other essential needs. Series of indicators show that water consumption levels must be immediately reduced; indicators may include: Sustained demand is exceeding normal supply or delivery capacities, or Stage 4 (Mandatory) Water storage facility(ies) is/are only 2/3 full, and City Manager determines that ability to meet fire protection or other essential needs is jeopardized. Supply or delivery capacities have been reduced or are anticipated to be reduced by up to Major water use reductions are deemed necessary toavoid system failure, inadequate fire protection capability and/or toassure protection ufwater qua|ity;indicekoomoyindude: Stage 5(K4andatorA Sustained demand continues toexceed supply ordelivery capacities, or Water storage tad|ity(ie$ is/are only 1/3 full. Supply source or major facility is lost, reducing supply or delivery capabilities to less than 65% ofnormal capacities. Ashland anticipates that its future water service area will expand beyond its current service area during the planning horizon of this WMCP and into its Urban Growth Boundary (UGB). To project future populations to be served, the City relied on the population forecast conducted by Portland State University's Population Research Center. This forecast was conducted for the Cik/s U(SB. The results are shown inExhibit ES-3through 2O73. City of Ashland ES-4 Executive Summary Draft 2023 Water Management and Conservation Plan Exhibit ES-3. UGB Population Projections Year Population 2023 22,651 2033 23,611 2043 24,/10 2053 25,942 2063 27,164 2073 28,379 Water demand projections through 2073 were developed assuming that water demands would grow at the same rate asAshland's water service population, with additional increases in demand caused by projected temperature increases over time due to climate change. A climate change analysis was conducted for this WMCP to evaluate the impacts of climate change on demand and the Cify'sprinoap/ water supplies, Reeder Reservoir, and Ashland Creek. The results of the analysis suggest demands will increase, particularly earlier and later than the [itV'shistorically observed peak season nfMay through October. For example, demand may increase by as much as 14 percent above historical demands in October bythe 2O7Osbecause ofclimate change. Exhibit ES-4shows projected demand for the City considering projected temperature increases due to climate change. Exhibit ES-4. Ashland's Projected Annual Demand Demand Year (million UU 2021 (Actual) 1,100 2023 1,073 2033 1,127 2043 1,107 2053 1,256 2063 1,322 The [hv's conservation program has led to significant water savings. Though the [hv anticipates that additional water savings will result from the City's future enhanced and expanded conservation program measures, the City anticipates that these will be more difficult to realize. Thus, the demand forecast for this VVMCP takes a conservative approach to forecasting by only considering the [itY's past conservation efforts by virtue of using historical demand to project future demand. Climate change impacts to streamflows of Ashland Creek were also analyzed. The models for this analysis project little change in the annual amount ofprecipitation, but predict shifts in precipitation leading to increases in winter flows and reductions in spring and summer flows. These changes are expected due to more precipitation failing as rain and reduced snovvpack melt earlier in the year. These impacts could reduce the availability ofwater from Reeder Reservoir, requiring additional reliance on the [it's Lost Creek Reservoir supply via the TAP in1erLie, as shown in Exhibit [S-5. City of Ashland ES-5 Executive Summary Draft 2023 Water Management and Conservation Plan Exhibit ES-5. Comparison of Demand and Supply through 2073 1600 1 1 1 2047 Projected TAP 1400 1200 1000 zs E goo ry Ll 600 400 ME X a rn U-) r- 0) r-i ro Ln r- M rH rn W"i rl- a) r-i M U-1 F-- M r-i M L?) n M � M Ln r- M r-i -1 a rH � VH N N N N N M CY) M M M st `t <t It It Ln U) Ln V) LO 1z LD S.O c0 0 r. CD 0 0 0 0 CD C) C:) 0 0 0 0 0 0 0 0 0 0 0 0 0 Ashland Creek Natural Flow and Reeder Reservoir TAP — — — Forecast Annual Demand, 2023 - 2072 Actual Annual Demand, 2011 - 2022 The City projects that by 2047, it will require full use of its Lost Creek Reservoir water rights of 1,000 AF under Certificate 96166 and Permit S-54337. In addition to serving as an additional source of supply, the City considers stored water in Lost Creek Reservoir a redundant source of supply for use when the City's primary sources of supply, Ashland Creek and Reeder Reservoir, are not available. Several feasible scenarios would render these sources unavailable, requiring the City's full reliance on its Lost Creek Reservoir water rights within the 20-year planning period of this WMCP. Thus, the City is requesting access to the entirety of Permit S-54337 (449.4 AF) in order to be able to continue to meet projected demand scenarios. City of Ashland ES-6 Municipal Water Supplier Plan Elements Draft 2U23Water Management and Conservation Plan 1. Municipal Water Supplier Plan Elements This section satisfies the requirementscfOAR d90-&96-D125. 7N5/Dle requires a1i5tof affected local gmke/n/nenf/owhom the plan Was Made a vailable, and proposed mbbefor submittal ofanuooa,hedplan. The City of Ashland (City or Ashland) sits in Jackson County in southwest Oregon along the Interstate 5 corridor and 16 miles north of the Oregon -California border. The climate of the area is mild year-round, with little snowfall and summer temperatures ranging between 65 and 85 degrees Fahrenheit ('F) on average. The City has over 21,500 residents of which approximately a quarter are students at Southern Oregon University. The City boasts the Oregon Shakespeare Festival that draws in thousands of visitors each year. The purpose ofthis Water Management and Conservation Plan (VVM[PorPlan) isto: (1)guide development, financing, and implementation of water management and conservation policies, programs, and practices that ensure long-term sustainable water use by the City and its customers and /Ilserve as awater supply evaluation and assess the CitV'swater supply and document plan to meet the CitV'sfuture water needs. ThisVVMCP addresses a 20-yearplanning period from 2023 to 2843. This is the City's second WMCP. The first WMCP was developed in 2013 and was required under a condition in Permit S-54337, which the City received in 2006. This 2023 WMCP is intended to meet two conditions associated with the [itv's water rights. First the final order issued by the Oregon Department of Water Resources (OWRD or Department) approving the City's 2014 WMCP included a condition requiring the City to update its plan and submit the updated plan by March 3, 2023. Second, a permit extension for Permit S-54337 issued on August 26, 2022, required submittal of an updated WMCP to OVVRO within 3 years of issuance. This VVK4CP is submitted in compliance with the requirements of the Oregon Administrative Rules (OAR) forVVK4[Ps adopted by the Water Resources Commission in 2018 (OAR Chapter 69O,Division 86). The WMCP is organized into the following sections, each addressing specific sections of OAR Chapter 690, Division 86. Section 2 is an evaluation of the Citv's water supply, water use, vveber rights and water system. The information developed for Section 2 is the foundation for the sections that follow. The later sections use this information to help guide key elements of this Plan, including the Citv's future conservation efforts, curtailment measures in the event of a water shortage, and future use and management of the [ity'ssupplies. City of Ashland 1-1 Municipal Water Supplier Plan Elements Draft 2023 Water Management and Conservation Plan Section Requirement Section 1 - Munidpa|VVaterSupp|ier Plan Elements (NR690-&&6-D/25 Section Z- Municipal Water Supplier Descriptions GNR89D-896-0/40 Section ]- Munidpa| Water Conservation Bement CNRt90-&86'0/57 Section 4- Municipal Water Curtailment Element O4R650-&86-0/67 Section 5- Municipal Water Supply Element &4ktE0-&96'V/7D 1.4 Affected LoKGovernments The following governmental agencies may be affected by thisWM[P: • City ofMedford ° City ofTalent OalenA • City ofPhoenix (Phoenix) • Jackson County (County) Inaddition, the City provided Medford Water (MW)and the Talent Irrigation District (FDD) and the Cities of Eagle Point and Central Point with a draft plan as a courtesy. Thirty days before submitting this VVM[Pto{)VVR[},the City made the draft VVMCPavailable for review by each affected local government listed above along with a request for comments relating to consistency with the local government's comprehensive land use plan. The letters requesting comment and any comments received are provided inAppendix A. � �� U Update � � Schedule ��~�� Plan �� The City anticipates submitting an update of this WMCP within 10 years of the final order approving this VVK4CP. As required by OAR Chapter 090, Division 86, a progress report will be submitted within 5years Ofthe final order. The City is not requesting additional time to implement metering or a previous benchmark. City of Ashland 1-2 Municipal Water Supplier Description Draft2023 Water Management and Conservation Ron Municipal Water Supplier DescriptioF 7h)ssection sad5fieethe requirements ofOAR 69D-Q86-Oy40. This rule requires de5criotion5 ofthe Water 5UPplierS water sources, service area and population, water rights, and adequacy and reliability of the existing water supply The rule al5o requires descriptionsnf the water supplier5 customers and their water use, the water 5y5tem, interconnections with other water and quantification u/water loss. The following terminology is used inthis VVM[P /)emandand system demaoo/refers to the quantity of water delivered to the CitV's distribution system from its water treatment plant (WTP) plus water treated at the MVV\NTP and delivered via the Talent, Ashland, Phoenix (TAP) pipeline. Consumption is equal tothe volume o[metered water use and unrnetered, authorized water uses. Metered consumption includes water use by residential, commercial, industrial, public, and irrigation customers, for example, and unrnetened, authorized uses can include firefighting and hydrant flushing among other uses. Generally, demand and consumption in municipal and quasi -municipal sVytenny are expressed in rate of usage using million gallons per day (nngd), but also may be expressed in cubic feet per second /cfs\ or gallons per minute (gpnn). One nngd is equivalent to 1.55 cfs or 694 gprn. For water measured by volume, million gallons (MG) or acre-feet A\R are used; an acre-foot is325,850 gallons. The following terms are used to describe specific values of system demands in this WMCP: • Average day demand A\D[Aequals the total annual production divided hv365days. • Maximum day demand (MDD) equals the highest system demand that occurs on any single day during ocalendar year. Itisalso called the peak day demand. * Monthly demand equals the total volume of water produced in a month divided by9O. w Maximum monthly demand (MMD) equals the highest demand in one of the 12 months of a calendar year, w Peaking factors are the ratios of one demand value to another. The most common and important peaking factor used in thisVVMCP is the ratio of the K4DD to the ADD. City of Ashland 2-1 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan �� ~� ~�� *� Water Sources �� The City'sphmary source ofsupply isthe Ashland Creek watershed. In1928, the City constructed Hosler Dam, which impounds water from the West and East Forks ofAshland Creek. This impounded water iJ stored in Reeder Reservoir, which is capable of storing 280 MG (860 AF). Water from the reservoir is conveyed in a transmission pipeline along Ashland Creek to the City'sWTP located approximately 1 mile below the reservoir as shown in Exhibit 2-1. A second source of supply includes Lost Creek Reservoir authorized Fmthe [ity'sPermit S-54937and Certificate 9611G.When needed, water from this source is diverted at the Lost Creek Dann and re -diverted at K4VV's Duff VVTP where it is treated by K4VV and conveyed toAshland via the TAP inLertie, also shown in Exhibit 2-1. Ashland may also receive surpluswater K4VV (diverted under MVV'3 water rights) as a source of supply. Ashland has numerous water rights that authorized diversions from Ashland Creek. The points of diversion for these rights are located at the CitV's\NTP. The City may also receive water from Hyatt and Howard Prairie Reservoirs under contract with the U.S. Bureau of Reclamation (BOR), conveyed in TIDs canals to the City (labeled "TID" in Exhibit 2-1). TID can supply untreated water to the City via the Ashland canal in years when water is available. Historically, at least a portion of the total volume of water authorized for use by the City has been available annually during peak season. However, in2O21 and 2O22,severe drought conditions prevented TIDfrom providing Ashland water. When available, TID water is pumped from Ashland canal to the City's WTP where it is blended and treated with water from Ashland Creek. The City provides some Ashland customers with non -potable water from Ashland canal for irrigation and other non -potable purposes when available. Some of Ashland's customers receive water directly from TID as non -potable water, which is used primarily for irrigation. This arrangement is not managed bythe City; thus, itisnot considered a source of supply for the City. There are approximately 180 City customers that receive non -potable water in the Ashland canal provided by the City. City of Ashland 2-2 Municipal Water Supplier Description Draft 2U23Water Management and Conservation Plan Exhibit 2-1. Sources of Supply ^� �� K�� Service �� ~»��~K�� ^0 ��K�k�U��~K�� ~~~= Current ~= " "" "° Description v� Population x �v The Chvs existing water service area includes the area within the [hn linnh3 as shown in the CitV's schematic, Exhibit 2-2. Exhibits 2-1 and 2-2 also show major components of the Citv's distribution system and boundaries of the City and the City's Urban Growth Boundary (UGB). The population of the City was 21,642 in 2022 according to Portland State University Population City of Ashland 2-3 Municipal Water Supplier Description This page intentionall ,y left blank. City of Ashland 2-4 N N N N N m N I m m m a m 1 ( ! c 3 f r AD N N N N o o =o 0 0 =o .... of N,. 3}0' C Tii � N �., �p Ea�s n 6 I m N a3_ w st. --.{ i I � e4 o� m Wl g l ( mIZI 74 � Y II- p y' a. I" m nwap C to` vx 3 c c. IN x *T w iS: Municipal Water Supplier Description Draft 2023Water Management and Conservation Plan ^� ^� Interconnections x~�~ ~�U� ��U� ��.�� n�� nn "��nxer Systems The [kv\water system has two interconnections. The TID interconnection allows the City to receive water from TIDvia the Ashland canal sourced from Hyatt and Howard Prairie Reservoirs. When available, water from TID can be treated at the City's WTP and used to augment the City's supply during peak Season orwater from the canal (non -potable) can be used by [ih/ customers for irrigation purposes. The City also has an interconnection on the TAP intertie, which conveys water from K4VV, identified as "TAP" in Exhibit2-1. '� g� Intergovernmental �� ^� �~�^ � x�� ^� �� .~� �� x�� u�� er Supply �� _'—'~.-~~~~~~~-'~`_' Ashland has rnuldV/e intergovernmental agreements /DSAx and contracts for water supply related to the following entities: (1) the B{}R, (2) the Partner Cities; (3) [hv of Medford; hU lIC\ and (5) Talent and Phoenix. 2'5'1 Partner Cities InSeptember 2OZ2 Ashland joined the six other Partner Cities (Cities of Jacksonville, Central Point, Eagle Point, Phoenix, and Talent) and MW in signing an IGA called the Coordinated Water Management and Water Sharing Agreement (Partner Cities'IGA) that establishes a coordinated approach to water rights management and describes a mechanism for sharing water among the Partner Cities. Under the Partner Cities' IGA, Padner's will coordinate certificating water rights in permit ortransfer status with a point of diversion at MVV's Robert A. Duff Water Treatment Plant (DuffVVTP) as the Duff \A/TP capacity is expanded over time. In addition, the IGA establishes a framework that promotes long-term regional water supply. In summary, if Partner Cities have supply in excess of demand, that excess can be shared with other Partner Cities with a deficit of supply. The IGA is effective through October 1, 2027 and may be renewed in 5-year increments. 2.5.2 City of -Medford Through Ashland's agreement with the City of Medford, MW can provide up to 1,480 gallons per minute kzpnd of surplus water from October through April and surplus facilities capacity to treat and transport up to 1,480 gpm (2.13 mgd) from May through September. From May through September, the CitV's reliance on the K4VVfacilities is associated with its use of stored water from Lost Creek Reservoir of 1,000 AF authorized by Certificate 96166 and Permit S-54337. Ashland has an option to receive up to 3 nngd of surplus water. In addition, this agreement allows for the provision ofwater to Ashland inthe event ofanemergency. The City annually contracts with the BOQfor the use of stored water from the Howard Prairie Reservoir. City of Ashland 2-7 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan contracted for the use ofup1o173AF. Water isconveyed from the reservoir 10Ashland via TID's canal system. This contract does not guarantee the availability of water to Ashland. 2.54 Talent Irrigation District Ina1924agreement and subsequent agreement in192hwith TID, the City obtained 8OOAFin perpetuity ofwater from the TID, sourced from water impounded in Hyatt Reservoir and delivered via TID's canal system, for use by the City during the irrigation season. In 1935, the City relinquished 33 AF feet of this volume to TID, resulting in a total supply of up to 768 AF available to the City. The City is entitled only to a pro-ra1a share in the event of shortages in TID's system. As noted in the [itv's 2014 VVK4[P, TID measures the water that it provides tothe City atthe Starlite measuring station. According to TID, the district does not have contracts with any water users on the [itv's side of that measuring station. 2_5_5 Talent and Phoenix Ashland has several agreements with the Cities of Talent and Phoenix regarding the management and construction of the TAP facilities through which water from K4VV is conveyed. Based on these agreements, Ashland currently has access to 2.13 mgd via the pipeline. The most relevant of these are listed below per the TAP Master Plan 1 w 20OOTAP DGA—October 27,2O00 0 2OOOTAP DGAAmendment No. 1 — March 20, 2OO2 ° 2OOOTAP IGAAmendment No. 2—Unsigned ZOO4 0 2000 TAP IGA Addendum No. 1 — May 15, 2007 0 2OOGTalent Ashland I(5Afor Emergency Water Service — April 19,2OO6 ° MVVCommission IGATAP Regional Pump Station Maintenance Agreement (October 2OD[Dand AnnendnnentNo.1 (May 7,2OO2\ 0 TAP Cost Allocation Recommendations —2017 0 2O2]TAP IGA(for intended approval b«the City inAugust, 2023) Over time, the City has observed ageneral trend ofdecreasing annual demands. This trend is highlighted by comparing the average demands from 2005 to 2007 to the average demand from 2020 toZ022--resultinginadecrease indemand byapproximately 11 percent —and comparing the volume ufwater used onaper capita basis inZ0U5of16Ogallons per capita per day /opcd\toper capita water use in 2022 of 159 gpcd.This trend also was observed inthe Citv's peaking factor; these values slightly I n*zeta izuzo TAP Water Master Plan. Prepared for the Cities ofTalent, Ashland, and Phoenix. Summer, zoao City of Ashland 2-8 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan decreased from afactor ofover Zfrom 2005 to007 (reaching a high of 2.14in200Btoconsistently being below a factor of 2 since 2016 (1.86 in 2019). This decrease in the peaking factor suggests that customers, and in particular residential customers, have adopted more efficient water use practices during peak seasons since the rnid-2000s. (Changes to residential customer consumption are more thoroughly explored in Section 27] Exhibit 2-3 highlights these and other historical changes. Exhibit 2-3'Water Demand, 20D5 tm2022 Annual (MG)(mngd) ADDK8DD (nmgd) Date 0Y0D PeakingDailyDemanduf Factor Population Per Capita Demand (gpc6) 2005 1,220 3.34 7.17 Auq-05 2.14 20.880 160 2886 1,261 3.46 7.04 ]u|-06 2.04 21.438 161 2007 1,218 3.34 6.96 ]u|-07 2.09 21.630 154 2008 1,196 3.27 6.50 /u|-08 1.99 21,485 153 2009 1'073 2.94 6.74 Aug-09 2.29 21.505 137 2018 950 260 5.88 Aug18 2.26 21,460 121 2811 943 2.58 5]6 Aug-11 2,08 20.255 128 2012 959 2.65 5.14 Au412 1.94 20,324 131 2013 1'059 2.90 5.95 ]u|13 2A5 20.395 143 2814 967 2,65 4.80 ]u|-14 1.81 20,540 130 3015 989 271 5.43 ]u|-15 2.01 20.405 133 2016 1,008 2.73 5.25 Aug-16 1.92 20.628 133 2017 1'055 2.89 5.72 Aug17 1.98 20.700 140 2018 1,057 290 5.55 Aug-18 1.92 20,815 139 2019 1.016 2.78 5.19 Jul-19 1.86 20.960 133 2020 1,082 2.96 5.84 Sep-20 1.98 21,474 138 2821 1'100 3.01 6.01 Jun-21 1.99 21'554 140 2822 1.096 3.00 5.93 Aug-22 1.97 21'642 139 Exhibits 2-4 and 2-5 graphically depict annual demand and average and maximum day demands from City of Ashland 2-9 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Exhibit 2-4. Annual Demands, 2005 - 2022 Exhibit 2-5. Average and Maximum Day Demands, 2005 - 2022 8 7 6 en 5 4 GE 3 2 I 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 -Average Day Demand (mgd) = Maximum Day Demand (mgd) • 2.7.1 Categories of Accounts The City organizes its water service accounts by seven customer categories: single family residential, multifamily, commercial, irrigation, government, municipal, and commercial/residential as shown in Exhibit 2-6. Multifamily residences are defined as dwellings with more than one unit sharing the same water meter. The Government category includes the schools served by the City, and the Municipal City of Ashland 2-10 Municipal Water Supplier Description Draft 2O23Water Management and Conservation Plan category includes City accounts. TheCVrnnnencial/Kesidential category includes customers with mixed uses, such as a multi -story building with both commercial space and residential dwellings. Customers in the single-family category represented the largest group in 2022, with 78Ypercent ofall accounts followed by the Commercial (8.6 percent) and Multifamily (8.3 percent) categories. The combined categories of Irrigation, Municipal, Government, and Commercial/Residential made up 6.5 percent of all accounts. Exhibit 2-6. Count of Accounts by Customer Category, 2022 Customer Single Family 7,406 78.7% Commercial 807 8.6% Multifamily 589 63% Irrigation 325 3.5% Municipal 187 2.0% Government 66 0.7% Comme/ziu|/Residentia| 33 0.4% 2~7.2 Total Consumption Exhibit 2-7 shows the total annual metered consumption from 2014 to 2022 and Exhibit 2-8 graphically depicts this data. The consumption data prior to 2018 was drawn from the City's 2019 WMCP Progress Report. The City's 2019 WMCP Progress Report consumption value for 2018 is slightly higher (969.8 MG) than the volume shown below, likely due to the Citv movinq to a new billing system in 2018. Annual consumption averaged 94g1 K4Gfrom 2O14through J022.The highest consumption volume was 988.7 MG in 2021 and the lowest was 912.5 MG in 2014. Exhibit 2-7. Annual Consumption (MG) Table, 2014-2022 Year Consumption (MG) Population 2014 912 20,340 2015 918 70,405 2016 963 24620 2017 957 20,700 2018 976 30,815 2019 918 30\960 2020 970 21,474 202I 989 21,554 2022 938 21,643 Overall, total annual consumption has remained fairly consistent during this 9-year period, with a slight City of Ashland 2-11 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Exhibit 2-8. Annual Consumption (MG) Chart, 2014-2022 1,200 --- ------'— — —' --- 2022 2'7'3 Consumption by Account Category Exhibit 3-9provides the number ofservice connections in2O22 and the percentage ofwater consumed by each customer category in that year. Single-family residential o)nsurnotiOD represents the largest proportion of use at 49 percent due to the large number of service meters, with Irrigation, Commercial, and Multifamily accounts consuming 43 percent. Combined, these four categories made up 92 percent nftotal water use. City of Ashland 2-12 Municipal Water Supplier Description Draft 2O23Water Management and Conservation Plan Exhibit 2-9'Number mfService Connections and Percent Annual Water Use by Customer Category, 2022 Government (66 Services), 3.4% Municipal O87 Services), 4.0% Single Family (7,406Semice$. Exhibit 2-10 presents annual consumption by account category from 2014 through 2022. The City's previous 2U14WM[Pdoes not have consumption h«customer category data inaformat that isdirectly comparable with data presented in thisVVK4CP. However, consumption hvcustomer category data from 2014 through 2017 was available from the 2019 WMCP Progress Report and is included in the exhibit for comparison purposes. The most significant, observable trends include a general increase in consumption by the Single Family category, which is likely due to population increases over this 9-year period. The Irrigation category generally decreased in consumption, possibly due to the City's aggressive campaign to encourage efficient use ofwater used for irrigation. The Municipal and Commercial/Residential categories' volumes increased to its peak consumption in 2018, and then decreased in the following years, while the Government category consumption significantly decreased in2O21 and 2O22.These decreases in Municipal and Government consumption were likely due to these users' responses to drought -like conditions, COVID impacts to municipal and government staff attendance at municipal and government facilities, and the [itV's requests for voluntary curtailment in 2021 and 2022. City of Ashland 2-13 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Exhibit 2-10. Annual Consumption by Customer Category, 2014-2022 Soo 400 300 — /"v - --�-- <1OO O 2014 2015 2016 2017 2018 2019 m Single Family MK4u|tifamily Commercial �Irhgation P.Gpvemment 0K4un - _ Exhibit 2-11 shows monthly consumption by customer category from 2018 through 2022. Consumption follows seasonal pattern, with increases in the summer months for all categories except for [ornrnerCia\/Residentialand decreases in consumption during the winter months relative to summer. Seasonal increases are likely attributed to outdoor water use. City of Ashland 2-14 Municipal Water Supplier Description Draft 2023Water Management and Conservation Plan Exhibit 2-11. Monthly Consumption by Customer Category, 2018-2022 80 - - - - - - - - — - ---�-�--�---- -- - - --- - --- - E 50 40 30 2 20 10 I oo�=vuu��m�mm _-� . ' N C '5 6- > C � ��'5 ^L > � � '5 6' > � � '5 6- > C � -5 6- > �~~-`�v�~M��o�~�_�n�~w��o�~m-`�u 2 �� Z � 2 z �� zc � � Z � �� Z —Single Family --Multifamily Irrigation —Government —Municipal —Commercial/Residential Ashland calculated a per capita single-family category demand of 104.2 gpcd b«dividing the 2O32 residential population estimate of 12,098 by the 2022 residential category's billed consumption volume of46O.1 MG. (The residential population estimate was calculated based onthe owner -occupied housing percentage from 2O17tO2O21 inAshland according tOthe U.S. Census Bureau Of55.9percent]This per capita value is within the range ofother single-family per capita water use rates of some surrounding communities. For example, the City ofMedfVn]'s estimated single-family per capita demand was 187 gpcd per the Medford Water Commission's 2015 VVK4[P.2Ashland calculated the City ofTalent's single-family per capita consumption for2O17 based on data provided in this citv'sVVK4CP3 and U.S. Census Bureau's estimate of persons per household to arrive at a per capita water use of91.8 gpcd, 2.7.5 Indoor and Outdoor Water Use In recognition of the seasonal consumption patterns displayed by the City's customers, the City calculated and compared winter and summer consumption volumes to highlight these differences. cn2m.zo1rWater Management and o»noenva«ooPlan, Medford Water Commission. June mo1z a nnz.zozoWaterMa,zgementandc000envaoion/lanChyufTa|ent.4ph|aozo. City of Ashland 2-15 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Estimates of indoor and outdoor water use by customers may provide information that helps the [hv target its water conservation efforts. The annual indoor use was calculated b«multiplying the average use for the month ofDecember for each customer category from 2018 to 2022 by 12 months. This calculation assumes that December consumption is representative of the monthly volume of water used indoors for every month of the year. The average annual outdoor use was calculated by subtracting annual indoor use from total average annual use for each category for 2018 to 2022. This calculation was performed for each customer category and is presented in Exhibit2-12. Based on these calculations, estimated indoor water use for all customer categories (not shown in Exhibit 2-121represented approximately 50percent oftotal water use and estimated outdoor water use represented approximately 44 percent of total water use. The Municipal category is not shown on Exhibit 2-12 because there was unusually high consumption in this category in 2018, which skewed the data and produced unreliable estimates. The Commercial/Residential category iaalso not shown onthe chart because the consumption in that category is too low tO discern a difference between outdoor and indoor use. Almost all categories had higher estimated indoor use than outdoor use except for the Irrigation and Government categories. Outdoor water use represented 44 percent of annual use among Single Family users, and 37 percent among Multifamily users. The previous 2014 WMCP reported a total annual outdoor use figure of 592 MG for 2008, and the current estimate for total average annual outdoor use for 2018 through 2022 is 420 MG, which indicates that outdoor use has decreased since 2008. This decrease may be due to successful water conservation programs targeting outdoor use, the addition Of a peak season tier to the CitV's water rate structure, or the [itv's curtailment measures during recent drought and water shortages. Exhibit 2-12,Annual Indoor and Outdoor Water Consumption by Customer Category, 2018-2022 250 0 5 200 -�-------- - � ------��- 150 - - ---- -� ' - -- 100 �� 50 MR u� Single Family Multifamily Commercial Irrigation Government a Average Annual Indoor Use M Average Annual Outdoor Use 2.7.6 Largest WaterUseYs Exhibit2-13 lists the City's top 10 water customers. These customers were responsible for the use of City of Ashland 2-16 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Exhibit 2-13'Comsumption of Top 10 Water Users, March 2021 through February 2022 AM Municipal Municipal Commercial Multifamily Government Commercial Multifamily Commercial Multifamily Multifamily Annual Volume Used 0].91 ]1.57 30.33 25/B 2].55 13.23 13.10 732 6.90 Percent of Annual 3.1% 1.6% 1.59& 1.3% 12% 0.7% 0]% 0.4% 0.3% 0.396 Water loss is defined in the rule as a nonnpahS0D of all water that enters into the water supplier's 3vst8rn and the total Authorized Consumption. Total water demand includes water supply from Reeder Reservoir/Ashland Creek, Lost Creek Reservoir, TID, and MW. Authorized consumption includes metered consumption bycustomers and metered bulk water use and unnnetered,authorized uses such as system flushing, street sweeping,jet-rodding, and fire department use. (The City used an average of 2019 through 2022 to estimate the "Other Consumption" volume for 2018 because this data was not available for this VVM[P] Water loss includes apparent losses (i.e., unauthorized consumption, meter inaccuracies, and data handling errors) and real losses (i.e., system leakage). System leakage, as the name implies, is water loss from deteriorating or compromised pipes, pipe joints, service connections, and valves, among other sources. The City is unaware of any unauthorized uses. Exhibit 2-14 shows the City's water loss estimates for 2018 through 2022. During this period, the City's water loss ranged from 72percent to141 percent, averaging 1O.Opercent. Loss in2022islargely due to a major leak discovered and promptly repaired in 2025. City of Ashland 2-17 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Exhibit 2-14.Water Audit, 2018-2022 Year Total Demand (MG) Metered Consumption (MG) Other Consumption � (MG) Total Consumption Water Loss (MG) Water Loss Percentage 2018 1,057.5 9703 5.3 981.6 75.9 7.2% 2019 1016.4 918.0 4.0 922.0 94.4 9.3% 2020 1,081.5 970.4 46 975.0 106.6 9.9% 2021 1,1003 9807 8.9 997.5 102.8 9.3Y& 2022 1,095.6 937.6 3.9 941.5 1542 14.1%1 5-Year Average 10.0% , Other consumptioninc|udexmetomdbu|kwater sales and unmetered system flushing, street sweeping, jet-rodding, and fire department use. 2 The City observed significant system losses in 2022 resulting from a leak that was discovered and repaired in 2023, ir I'll 41 2.9.1 Summary of Municipal Water Rights Ashland Creek (and Reeder Reservoir) provide the primary source for the City's municipal water supply. The City holds a water right authorizing the storage of water from Ashland Creek in a reservoir (Reeder Reservoir) and a secondary right authorizing the use of the stored water from Reeder Reservoir, as well as natural flow from Ashland Creek for municipal use. The City also holds Certificate 15998, which authorizes the use of up to 1243 cfs from Ashland Creek as well as an additional 22 other water rights for the use of water from Ashland Creek for municipal purposes. All these water rights are in certificate Status. The 22 rights, which previously authorized the use ofwater for irrigation purposes, were acquired by the City and transferred (modified) to authorize municipal use of water. In addition to its Ashland Creek water rights. the City also holds municipal water rights for the use of stoned water from Lost [reek Reservoir and a water right authorizing the use ofwater from Sulphur Spring, which is atributary ofNeil Creek. The City holds awater use permit and certificate authorizing the use of stored water from Lost Creek Reservoir. (The City recently obtained the certificate through a partial perfection of the permit.) The City currently does not use water under its water right certificate for the use ofwater from Sulphur Spring, These rights are described in more detail below, and inthe CitV'ywater rights table, which is provided in Exhibit2-15. Ashland Creek Water Rights Certificate 10843 Priontydate: May 20,1927 Source.- Ashland Creek Volume: 800A/ Purpose: Stor3ge /nReeder Reservoir for municipal use City of Ashland 2-18 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan In May 1927,the City applied for a permit tostore water in Reeder Reservoir for municipal water supply. In July 1927,the State Engineer issued Permit R-596authorizing the storage ofupto8OOAFnfwater in the reservoir from Ashland Creek for municipal use. The City fully developed this water right and in September 1934received Certificate10843. Priority oate: Mav31, 7927 fburce: Ashland Creek and Reeder Reservoir Rate. -/5 cfs Purpose: Municipal bse lnJuly 1927 the State Engineer issued Permit S-798510the City, which authorized the use o[upto15 cfs from Ashland Creek and Reeder Reservoir for municipal use. The City fully developed this water right and received Certificate 1O856.The water right has a priority date ofMay 31,1927. Certificate 15998 PrIonty ma&e:/85-/—/Ny2 (for munIcipal »5*4 fburce: Ashland Creek Rate., 12.43 cf5 (for municipal use) Purpose: Municipal Use In September 1949, the State Engineer issued Certificate 15998, based on the right decreed during the Rogue River basin adjudication. The water right authorizes the use of water from Ashland Creek for municipal, domestic, stock irrigation and hydropower purposes. Water can be diverted at rate ofup to 12.43 cfs for municipal, domestic, stock, and irrigation purposes within the corporate limits of the City of Ashland. Additional 22 Ashland Creek Certificates Priority da te:December 3/ /85yb7December 3t /855 Source: Ashland Creek Combined Maximum Rate: 1. 633rDbic feet per second Purpose: Municipal Use lnaddition tothe water rights described above, the City has acquired 22mddhjonal water rights that authorize the use 0fwater from Ashland Creek. These rights are described inmore detail inthe Municipal Water Right Table in Exhibit 2-15. The combined maximum authorized rate for these rights is 1.033 cfs. The noaxinnurn authorized rates for the individual rights range from 0.011 cfsto 0.315 cfs. The priority dates for these water rights range from 1854to 1885,vvhich pre -date Oregon's 1909vvaLer code. Consequently, the rights originally were granted through the Rogue River adjudication and decree. The rights originally authorized the use of water for irrigation purposes. After acquiring the rights, the City filed transfer applications to change the authorized use to municipal purposes. The transfers also changed the place of use to within the corporate limits of the City of Ashland or identified sections within Township 39 South, Range 1 EastVV.K4. The transfers also changed the point of diversion 4 Certificate 1s99malso authorizes the use ofuptnz9obfor hydropower purposes. This portion vfthe water right icdescribed inthe water rights table, but is not considered as part of the evaluation of the City's municipal water supply. City of Ashland 2-19 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan for these rights to the SE SE, Section ZO, Township 39 South, Range 1 East VIM, which is also the point of diversion for the City's Certificate 10856. Eleven of these water rights allow the use of water year round and the remaining allow use only during the irrigation season (April 1 to November 1l Lost Creek Reservoir Water Rights Permit S-543378Dd Certificate 96166 Priority cla te:'4uoost //2003 Source: Lost Creek, Reservoir Volume: 1,000 AF(449.4/4F/ncertificate status) Purpose: Municipal Use In August 2003,the City applied for apermit touse stored water from Lost Creek Reservoir for municipal use. In Septernber2O08 thmOVVRD issued tnthe City PerrnitS-54]37 authorizing the use of upho1,OOOAFofstored water from Lost Creek Reservoir for municipal use. (The use ofstored water is also subject to the contract between the U.S. Army Corps of Engineers and the City.) The water right does not include arate limitation. The stored water isdiverted atK4VV'sDuff VVTP.{)nApril 12,2U22, OWRD issued Certificate 96166 through a partial perfection of the permit. Certificate 9610Mconfirms the use of up to 550.6 AF of stored water. The remaining 449.4 AF portion of Permit S-54337 continues to be in permit status. {}n August 26, 2022, {JVVRD issued a final order extending the development deadline for the permit toOctober 1,2O81. Sulphur Spring Water Right Certificate 11090 Priority date. April 25, 1934 Source: Sulphur Spring Rabe: 0.085 cfs Purpose: Municipal Use In April 1934, the City applied for a permit to use water from Sulphur Spring for drinking purposes or irrigation of City -owned land. In May 1934, the State Engineer issued the City Permit S-1 1243 authorizing the diversion ofupto 0D35 cfs from Sulphur Spring for municipal use. The City developed this water use and in January 1935 received a certificate (Certificate 11090) confirming the right to divert up to 0.035 cfsfr0rn Sulphur Spring for municipal use. The place ofuse for the certificate is described as Sections 3, 4, 9, 10, and 15 Township 39 South, Range 1 East W.M. or on any other land owned by the city, whether within or without the limits of the city. The City does not currently divert water under Certificate 11OqOfor its municipal water supply, but retains the water right as a potential source of future water supply. 2.9.2 Summary of Non -Municipal Water Rights The [hv also holds water rights that authorize the use ofwater for purposes other than municipal water supply, including two water rights that authorize the use of water for hydropower, and one water right that authorizes the use ofwater for irrigation and domestic use. These rights are further described in the [itV's water rights table, which is provided in Exhibit 2-15. Since the City does not use these water rights to provide municipal water supply, they are not considered in the remainder of this VVK4CP. 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I Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan 2.10 Aquatic Resource Concerns OAR 690-086-140(5) requires the City to identify the following for this source: (1) any listing of the source as water quality limited (and the water quality parameters for which the source was listed); (2) any streamflow-dependent species listed by a state or federal agency as sensitive, threatened or endangered that are present in the source; and (3) any designation of a source as being in a critical groundwater area. The City relies on surface water from Ashland Creek, a tributary of Bear Creek, and the water impounded in Lost Creek Reservoir, a tributary of the Rogue River to meet demands. Water from Lost Creek Reservoir is diverted at the Lost Creek Dam and re -diverted at MW's Duff WTP at approximately River Mile 131.5. As part of a federal and state effort to protect Oregon streams from pollutants, every 2 years the Clean Water Act requires Oregon Department of Environmental Quality's (DEQ) to assess or re -assess water quality and report to the U.S. Environmental Protection Agency (EPA) on the condition of Oregon's waters. The Clean Water Act Section 303(d) requires the DEQ to identify waters that do not meet water quality standards and where a Total Maximum Daily Load (TMDL) pollutant load limit needs to be developed for additional regulation. Both Ashland Creek and Rogue River were placed on DEQ's 303(d, list as impaired water bodies for some water quality parameters. Ashland Creek is classified by DEQ as Assessment Unit OR SR 1710030801 02 105548. In DEQ's 2022 Integrated Report, DEQ categorized this creek, from Reeder Reservoir to the confluence of Bear Creek (approximately 2 miles in length), as a Category 5 water quality limited stream due temperature during the fish spawning season.5 The reach of the Rogue River from which water is diverted for Ashland use is classified as Assessment Unit OR_SR_1710030802_04_105816 and was placed on DEQ's 303(d) list as a Category 5 water quality limited stream due to year-round temperature, temperature during spawning season, biocriteria, and methylmercury.6 The City's wastewater treatment plant National Pollution Discharge and Elimination System permit requires the City to reduce the thermal loads on Bear Creek resulting from the City's discharge of wastewater into this creek. The City is currently performing a flow augmentation study in order to identify solutions to address this requirement. The City is also addressing thermal loads through a water quality trading program approved by DEQ. Exhibit 2-16 shows the listed fish species potentially located in Ashland Creek and within the reach from Lost Creek Dam to MW's Duff WTP point of re -diversion on the Rogue River. 5 DEQ's Assessment Database from the 2022 Integrated Report. 6 Ibid. City of Ashland 2-27 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan Exhibit 2-16. Listed Fish Species Potentially Located in Ashland Creek Fish Species Common Geography Federal State Listing Name Listing mykiss Oncol-hynchus Chinook Rogue SMU — Sensitive (Spring) tshawytscha Salmon Oregonichthys Umpqua Chub Range -wide — Sensitive -Critical kalawatseti lampeti-a tridentate (Ento5phenus Pacific Lamprey Range -wide — Sensitive Pacificus population segment Acipenser Green sturgeon Southern distinct Threatened Sens itive-Critica I medirostris population segment SMU = Species Management Unit,, — = not applicable References: , Oregon Sensitive Species List: https://www.dfw.state.or.us/wildlife/diversity/species/`docs/"`Sensitive Species List.pdf ° Threatened, Endangered, and Candidate Fish and Wildlife Species inOregon: ° Status ofEndangered Species Act Listings and Critical *abha Designations for West Coast Salmon and stedhead ° Endangered Species Act, Threatened and Endangered Species Directory: endavoeed7nDedesbtlo~&field species catyquriesvoobto,qetid=10O0000O3l&fieN The Cik/s sources ofsupply are not located within a critical groundwater area. 2.11 Assessment of Water Supply As previously described, the City currently obtains its water supply from Ashland Creek, Lost Creek Reservoir, and from TID during some years. The following discussion describes the adequacy and reliability of the [itY's existing water supply sources, which are primarily limited by source capacity, the relative priority ofits water rights, water system capacity, and water supply agreennents/contrects. Ashland Creek and Reeder Reservoir The [itvs primary source of supply is Ashland Creek and Reeder Reservoir, and its municipal water City of Ashland 2-28 Municipal Water Supplier Description Draft 2U23Water Management and Conservation Plan The [ity'sability to use these rights, however, islimited by its water system capacity, and by the streun1fow in Ashland Creek and the relative priority of its water rights compared to other water rights on Ashland Creek. The City's WTP has a current capacity of 7.5 mgd or 11.6 cfs. Additionally, the natural strearnflovvinAshland Creek during periods of low flow and peak demand further limits the City's use of water from that source because there is insufficient stremnn[lovv to meet the needs of all the water right holders. Although the City holds the majority of the water rights with priority dates of1895or ear/ier.7there are water rights with authorized points of diversion downstream from the [itv's intake on Ashland Creek that are senior in priority toCertificate 1O856,which authorizes the use 0fupto 15cfs and has apriority date ofMay 91, 1927.These senior water right holders are entitled tVreceive the full rate towhich they are authorized before the City diverts water under Certificate 10856. Additionally, the natural strearnflovv during peak demand periods is typically insufficient to allow use of the [itY's more senior water right*. The natural st[earnflovvinAshland Creek isestimated bVadding together the flows reported by the gages onthe East Fork and West Fork ofAshland Creek. The 80percent exceedanceofthe natural stnearnflovv reported at the gages during low -flow season ofJuly through September from 2003 through 2022 is 399 cfs. Rased on information provided byOVVRD's local vvaternnanter(see Appendix B) at this flow, the City must bypass a 1.244 cfs portion of this strearnflow to meet the demands of downstream water rights. Thus. the City would be expected to have access to approximately 2.75 cfs of Ashland [reek natural strearnflovv at least 80 percent of the time during this period (3.99 — 1.244 = 2.745). ([his assessment considers strearnflovvs under current conditions. See Section 5for a discussion ofstrearnflOvvS under future conditions.) The City augments this natural streannflovvwith releases of stored water from Reeder Reservoir. Storage inthe reservoir isauthorized bythe CitV's Certificate 1O843,which authorizes storage pfuptn80OAF. The [i1V is typically able to fill the reservoir each year. Although the City considers this water right to be secure and the supply of stored water to be reliable, the amount of water stored under this water right is not sufficient to consistently meet all of the [itv's water demands. As a result, the City must also use water from its other supply sources. Lost Creek Reservoir The City holds two water rights that authorize use ofuptoatotal nf1,00AFofstored water from Lost [reek Reservoir. Certificate 96166authorizes the use nfupto 550.6AF, and PernnitS-543]7 authorizes the use of up to 449.4 AF. Based on the final order approving an extension of time for Permit S-54337 to October 1, 2061, the City does not currently have access to water under the permit until OWRID approves an updated WMCP demonstrating the need for additional supply. The City has a contract with the U.S. Army Corps of Engineers for this storage space in the reservoir, which can create some uncertainty due tn associated federal regulatory processes. Nonetheless, the stored water in Lost Creek Reservoir historically has been sufficient to meet the needs of water users with rights to use the stored water and has not been curtailed. Accordingly, for planning purposes, the City considers Lost Creek Reservoir to provide a reliable source of supply. r The [nytrights authorize the use ufototal ofl4.0ssds, while the other downstream water rights authorize use ofatotal ofl30sdi City of Ashland 2-29 Municipal Water Supplier Description Draft 2023 Water Management and Conservation Plan The released stored water is diverted at the Lost Creek Dam, redivertedand treated at MW's WTP, and conveyed to the City via the TAP irtertieThe City'sportion of the TAP intertiecapacity is21]mgd, which allows the City tV use 1,000 AF associated with Certificate 96166 and Permit S-54337vvithin the period 0fMay through September (peak season). Inaddition torelying onLost Creek Reservoir toserve asanadditional source ofsupply, Ashland also relies on Lost Creek Reservoir to serve as a redundant source ofsupply for use during events in which water from Reeder Reservoir and Ashland Creek isnot available. Depending upon the timing ofsuch events, such as during peak season, the City would require use of all 1,000 AF over the year. Talent Irrigation District The City has contracts with TID to receive 768 AF of water for domestic purposes. (This water use is authorized by TID's Certificate 79212.) The water provided under these contracts is delivered by TID to the City via the Ashland Canal. Inaddition, the City has econtract with the BOKtoreceive 6OOAFof stored water from Howard Prairie Reservoir, which is delivered to the City bylID via the Ashland [anal. (This water use is authorized by 8OR's Certificate 80482.) Historically, water from TI[)was available annually during peak season for the City's use. However, TID did not have enough supply to provide to Ashland in 2021 and 2022. For this reason, for planning purposes, the City will consider the water supply from TTDto not provide a reliable source ofwater supply. A-1.12 System Description From Reeder Reservoir, Ashland relies on o 30-inchtransnnissimn pipeline to convey impounded water to the [kvsWr|P. This pipeline was replaced in 2007. The WTP has a treatment capacity of7.5 MG, which is adequate to meet the City's current needs; however, the City is in the planning stages of constructing anew, expandable WTP capable of meeting the City's future capacity needs and future regulatory requirements. Water is conveyed from the VVTPto Crowson Reservoir, the initial point of distribution to the south end of the [itV's distribution system. This transmission line was also replaced in2O07. According to the City's 2020 Water Master Plan (WK4P)8, the distribution system is composed of four reservoirs that provide 7.1 K4(S of treated water storage and 14 pressure zones served by four pump stations, 32 pressure -reducing valve /PRt0 stations, and over 126 miles of distribution piping. Exhibit 2-2 shows a schematic of the major water system infrastructure of the [itV's system. 8 RH 2 Engineering. 2020. Water Master Plan Update. City of Ashland 2-30 Municipal Water Conservation Element Draft 2O28Water ManaAumotandCunmenmtiunP|un This section addresses the requirementso/OAR 69O-&yd-D/50(/) —(6). This rule requires areport oo progress toward meeting previous benchmarks, descrIptlons of specific required mnsem*tiOmmeasuues and benchmarks, and additional conservation measures implemented6vthe City. �� Introduction `�..� The [itY's conservation program offers a wide array of services and incentives and performs extensive outreach and promotion in order to encourage customers to use water efficiently. Since one of the City's primary objectives is to motivate customers to reduce peak season use, Ashland provides numerous outdoor -focused measures, such as performing free water use evaluations at customers' sites. AS8Dadded incentive tomanage peak season use, the City adopted @ unique progressive seasonal water rate structure that adds a peak season tier on top of non -peak season tiers. Customers seeking ways to use water more efficiently indoors will find a variety nfindoor-related services and incentives available, for example rebates on water efficient appliances. Ashland's comprehensive conservation program caters to all of the [itv's major customer types, with offerings for residential, multifamily, commercial, and institutional customers. The following Conservation Element describes the CitV'sconservation program indetail. As part of the development of the Conservation Element, the City convened and sought input from a Management Advisory Committee (MAC) composed of Ashland water customers and a representative from the Ashland City Council. The purpose of the MAC was to offer ways that the City could expand or enhance the City'sexisting customer -focused conservation program and identify and evaluate potential reclaimed water opportunities that the City could implement. The results of the MAC's work is described in a technical memorandum found in Appendix C. In summary, the MAC identified and prioritized 30 conservation measures and reviewed nine reuse projects, many of which are described herein. In addition to customer -focused conservation measures, this Conservation Element describes the operational practices of the City. These practices, such as Ashland's water loss control program, promote the Citv'sefficient use ofwater under its control. This conservation plan was informed by several plans previously developed by the City, including the Water Conservation and Reuse Study9, the Water Savings and Cost Effectiveness AnalysislO, and the Climate and Energy Action Plan11. Conducted in 2811, the Water Conservation and Reuse Study established water conservation measures and targets and served as the basis for the City'a conservation efforts in the 2010s. The Water Savings and Cost Effectiveness Analysis conducted in 2018 evaluated the water savings impacts of various conservation measures. Many of the recommended measures were implemented bythe City following this study and comprise the basis of the City's current conservation program. The Climate and Energy Action Plan, published in 2017, described opportunities for the City to y [omUoEngineers. o011.City ofAghbndWauercb'5e^mtiomand Reuse Study.June zo11. 10maddausWater Management, Inc. z018. Water Savings and xna4la& 11 City of Ashland 3-1 Municipal Water Conservation Element Draft 2023 Water Management and Conservation Plan reduce its carbon emissions in part through water conservation measures, including an expansion of conservation education and outreach, use ofgreyvvaterand rainwater collection systems, and implementation of recommendations from the CitV's facility water audit. These measures continue to be important elements of the CitV's current conservation program and will he in the future, as described in this conservation plan, resulting in increased efficiency nfwater use. now The [ity's014WMCPdescribed the City's extensive water conservation program and set benchmarks for the water conservation measures required b»the rule. The Chv's2O18VVK4[PProgress Report provided an update on the City's progress toward meeting those benchmarks. In Exhibit 3-1, the City provides anupdate Ofprogress since publication ofits 2O14VVK4[P. 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Ln = i-' v o C u 4a m > c: > -0 (m uQ) N C p to 7 "O m ;ti+ O m t� hip 'Z tip dp •L M W G Q) t6 p o o_ 'i to O v7 O ;w > m o C U ,. in (u+� o `n cn -p Q) (� U ai p L Q) p >'Q) '� O of O Q) U -0p L Ln = L — E m Q) Y Q) Q) L > Q) o p bn tip 4- . ('a o c � E N; 0.';; N m E o- E E E v Municipal Water Conservation Element Draft 2O23Water Management and Conservation Plan 3.3 Use and Reporting Program OAR 690-086-0150(2) The Citv'swater measurement and reporting program complies with the measurement standards in OAR Chanter 698 Division 85. Source master meters are installed at the WTP and the TAP intertie and are owned and operated by the City. Volumes diverted from Rogue River under the [itv's storage rights are measured by meters owned and operated by K4VVat K4VV'sVVTP at the point of re -diversion. These master meters read and record the volumes of water produced every 24 hours. Based on these records, the City submits an annual water use report to the Department documenting the total amount of water produced from each source. These reports are submitted electronically to the Department by December 31 for the water year. The [ity's water use records can be found at �� ^� Required ^� Conservation �0 ~».�� uu�� U�� Measures OAR 690-086-0150(4)/a-f) OAR 690-086-150(4) requires that all water suppliers establish 5-year benchmarks for implementing the following water management and conservation measures: ~ Annual water audit • System -wide metering m Meter testing and maintenance • Water rate structure * Water loss analysis * Public education During the next 5years, the City plans toinitiate, continue, orexpand the following conservation measures that are required of all municipalities. 3.4.1 Annual Water Audit Avvater audit is an analysis of the water system that includes a thorough accounting of all water entering and leaving the system. One of the primary purposes of an audit is to identify volumes of water loss. A water audit also enables analysis of the water supplier's own water use. Ashland's methodology of estimating annual water losses and the inputs used bythe City for its audits are described in Section 2.8. As noted in Section 2, the CitV's average historical water audits documented annual losses below the target of 10 percent established b«(]WR[)'s administrative rules except for 2O22.The Citv's2022water loss was higher than normal because ofa large leak that the City discovered after a multi -month search. The leak was promptly repaired in 2023. Due to the leak, the [ih/'s2O23water loss estimate should beelevated aswell compared tothe historical average, but ia anticipated to return to 10 percent or less for the 2024 audit and annually thereafter. City of Ashland 3-13 Municipal Water Conservation Element Draft 2023 Water Management and Conservation Plan The City uses asystematic methodology to calculate water loss bysubtracting metered and authorized, unnoetered consumption from demand. Authorized, unnnetored consumption includes estimates of system flushing, street sweeping, et rodding, and fire department use. The City obtains metered consumption volumes from reports generated from its utility billing system. The reported quantities describe water that was consumed 2 months prior to the month identified on these reports due to a time lag between actual consumption, meter reads, and input of data into the [itv's utility billing system. To mitigate for this lag, the City adjusts these reports to align the date of actual consumption and diversion. These adjustments improve the accuracies of the City's monthly and annual water loss estimates. Metered water use volumes also include bulk water sales. The rule requires an analysis of the Citv's own water use to identify alternatives to increase efficiency. As e result, the City has reduced its own use Ofwater. The City initiated afacilities-wide audit intended to assess the water efficiency ofeach City -managed property, including, but not limited to parks. Though this project was not completed, the City identified and performed some improvements as a result of the audit, such as replacing 850 sq. ft. of turf with artificial turf in a median strip and replacing all median strip irrigation spray heads with more efficient models that reduced overspray and resulted in a more efficient application. Five- Year Benchmarks 0 Continue to conduct annual water audits. Within the next 5 years, resume facilities vva1eraudhs as resources allow and, upon completion, seek to modify practices to reduce water use based on the audit results. 3~4.2System-wide Metering All water connections are fully metered and the City installs meters for all new water connections. Five- Year Benchmark Continue to require existing water system connections remain metered and new customer water connections are metered. 3.4.3 Meter Testing and Maintenance Ashland periodically tests the accuracy of its master meters located at its WTP and along the TAP inberde. The meters atthe VVTPwere tested and calibrated in 2017. The TAP interdo master meters are relatively new and have not been tested since installation in 2014 and 2016. The City intends to establish a master meter -testing program to ensure periodic meter testing. The City can test the accuracy of service meters when the City suspects failure or upon customer request Meters that are found to be out of specification, defined as registering beyond +/- 5 percent of manufacturers' standard, are repaired orreplaced. The City ioalerted 1ofailing meters through its utility billing system when water use is unusually low relative to historical usage Five- Year Benchmarks 0 Establish a 5-year testing program for master meters by 2025 and begin testing these meters in City of Ashland 3-14 Municipal Water Conservation Element Draft 2023 Water Management and Conservation Plan 2026.Master meters will berec/ibratedrepaired, orreplaced asneeded ° Continue to repair orreplace service meters upon failure. 3.4.4 Water Rate Structure Inaddition Lmawater charge based onmeter size and acharge for service, the City charges for the quantity of water metered using a progressive, tiered rate structure. All customers except for those in the Government and Municipal categories have multiple tiers. The rates for each successive tier are progressive, that is, are higher than the rates associated with the next lowest tier. These rates increase per tier as metered consumption increases. For residential customers, the number of tiers depends upon the season: from October to May, four tiers are applied tousage and afifth tier isapplied tVthe period June through September (peak season). The rate structure for residential irrigation and commercial and institutional irrigation customers issimilar, but only includes three tiers during non -peak season and adds afourth during peak season. For the commercial and institutional irrigation customers, the City uses one tier during non -peak season and adds a second tier during peak season. Two tiers are applied to commercial customers' use, regardless of the season. Water rates are provided in Appendix D. The City anticipates that future rate increases will apply to all tiers except the first tier, creating a more pronounced price signal to customers in the higher tiers and providing further incentive for customers to efficiently use water. The City reads and bills customers monthly. This frequency affords its customers timely opportunities to modify consumption in response to consumption provided onwater utility bills. Five-Y'earBenchmark � Continue to bill customers based, in part on the volume of water consumed and on a monthly basis. 3'4'5 WaterLoss Analysis This rule requires that a municipal water provider must compare their water loss estimates as calculated through their annual water audit to an established water loss threshold of 10 percent. If water loss exceeds this 10 percent threshold, the provider must provide a description and analysis in the provider's VVK4CP identifying potential factors for the loss and selected actions for remedy within 2 years of the approval of VVK4CP. The City's water audit revealed water loss in 2022 that was greater than 10 percent, therefore this rule applies tothe City. The rule further states that if the provider's actions do not result in the reduction of water losses to 10 percent or less within 5 years of approval of the WMCP, the water supplier shall develop and implement regularly scheduled and systematic program todetect and repair leaks inthe transmission and distribution system using methods and technology appropriate to the size and capabilities of the provider ora line replacement program detailing the size and length nfpipe to be replaced each year; or, develop and implement water loss control program consistent with A\NVVA's standards. The Cit«'s historical water losses have been less than 10 percent since at least2O03 as noted in the City of Ashland 3-15 Municipal Water Conservation Element Draft 2023 Water Management and Conservation Plan (leaking water was flowing into Ashland Creek). The City anticipates that its annual water loss estimate will drop below 10 percent for the 2024 audit. If its water losses continue to exceed 10 percent by 2025, the City will meet the rule requirement by performing an analysis of potential factors for losses and report this to OWRD within 2 years of issuance of a final order approving this WMCP. Ongoing losses above 10 percent after 5 years of final order issuance will require the City to implement one of the three measures required inthe rule. Five- Year Benchmark If losses continue to exceed 10 percent in 2024, the City will perform a water loss analysis and inform OWRD of the results within 2 years of issuance of a final order approving this WMCP. Ashland's education program includes a wide range ofmeasures that offer methods for customers to use water efficiently indoors and outdoors. The City highlights several of these measures below and provides the full list ofmeasures and descriptions inAppendix E: Web presence: The [itv'svvebpagesprovide arange ofindoor and outdoor water conservation information, such aswater-wise landscaping techniques and irrigation practices. The City also uses its vvebsiteto promote its financial incentives and inform customers of available technical Printed materials: Ashland publishes newsletters and brochures for distribution tVcustomers in water bills and at events and at public displays at the CitV'a Public Works & Community Development building, City Hall, and North Mountain Park Nature Center. Topics covered in these printed materials include watering methods and schedules, indoor water use guide, tips for using water indoors and outdoors, methods to read water meters, graywate[ rainwater catchment, and drought response. In -person outreach: Public and private events provide anopportunity for the City to directly engage with customers. Employees staff booths with conservation displays and provide opportunities to distribute water efficient devices (e.g., faucet aerators) and answer questions about conservation. Examples of events attended by the City include Science Works on Earth Day and the Salmon Festival. The City also has presented water conservation topics totrade organizations, including the Southern Oregon Landscape Contractors Board and Rogue Valley Association of Realtors; homeowners' associations; and student bodies at local schools. The City provides water use history tonew homeowners upon request. This service highlights the importance ofefficient water use to potentially new customers and affords the City an opportunity to engage in conversations with customers about efficient water use. Partnerships: Ashland partners with other organizations to promote conservation. For example, the City provides material tothe Ashland Climate Collaborative, agrassroots civic organization that publishes a newsletter promoting water conservation in collaboration with the City. As another example, Ashland and MW organize and provide water conservation -related presentations to landscape contractors at the monthly Southern Oregon Landscape Association for which contractors can receive Continuing Education Units. City of Ashland 3-16 Municipal Water Conservation Element Draft 2O23Water Management and Conservation Plan Other: Other promotional activities include purchasing advertisements in local print and on -air media and movie ads at movie theaters. In response to the COVID pandernic and staffing resource shortages, the City postponed some public education programming. The City intends to add the following measures back into its public education program and expand these efforts over time per measures identified during meetings with the MAC. Within the next 2years, the City intends to: • Expand the "Kids Conservation Corner" on the City's website to include additional content appropriate for school age children. • Improve web access to information on fire adaptive landscaping offered on the City's website. • On the CitY's conservation vvebpage, cross-reference fire adaptive landscaping information as found Onvvvvvv.fireadapted83hlandorg. * Increase social media presence by using the City's social media outlets to further promote conservation. • Reinstate the Citv'sutility bill conservation newsletter. Over the next S years, the City intends to: * Expand smart controller education in order to increase the impact of the City's existing rebate program in order to help reduce peak season use. * Further align outreach efforts with respect to messaging of fire adaptive landscaping and water conservation landscaping techniques. * Request high school students assist in conservation outreach and education to elementary aged w Identify ways the City can connect with customers on the topic of conservation in places where these customers interact with the City, suchasduringthepennktingpnocessandotherciLV transactions. � Re -initiate classroom presentations and tours to students of the watershed, both of which were put Onhold during the [OVlDpandemic. w Incorporate water conservation concepts into fire hardening measures and other environmental programs (e.g.climate change) Five- Year Benchmarks Maintain the existing level ofpublic education programming osdescribed, with modifications to 0 Re -instate or expand the City's public education program over the next 5 years as described. City of Ashland 3-17 Municipal Water CnnsematunBmnmt Draft 2023 Water Management and Conservation Plan �� Additional Conservation �� .�� u �� Measures (JARh90-O86-015D(5)requiresnnunidpalvvatersuppliersthatserveapopulatinnofnnorethan1/X)D and propose toexpand q[initiate the diversion Vfwater under anextended permit for which resource issues have been identified, or if the population served is more than 7,500, to provide a description of the specific activities, along with a 5-year schedule to implement several additional conservation measures. In 2022, the City served a population of over 7,500; therefore, the City isrequired to implement the following additional Conservation measures. 3.5.1 Technical and Financial Assistance Programs The Chvtconservation program offers avariety oftechnical and financial assistance, Technical assistance measures that promote water conservation include the following existing services, many of which are highlighted on the City's website: Websheshosted by the City and the Conservation Collaborative provide a variety of water -wise landscaping techniques. Examples include a weekly lawn irrigation schedule based on average historical weather conditions along with example calculations of water needs of plants using an evapotranspiration (ET) formula, tree watering guidelines, and a watering calculator, which offers recommended settings for automatic irrigation controllers. Thevxebsi1e also focuses on indoor water efficiency. For example, thevvebSite describes how customers can conduct self -audits Of indoor water use, how to fix leaks, and water -efficient tips, such as running full loads of laundry. Brochures and guidebooks onselecting alandscape and/or irrigation systems,tree watering guide, water meter reading guide, and commercial kitchen efficient water use guide. On -site irrigation system evaluations for residential (i.e. single family and homeowners associations), multifamily, and commercial customers conducted by the City. Evaluations are offered during the summer months and consist of a comprehensive assessment of the design, operation, and management ofsprinkler systems. Assistance with sprinkler controllers and watering schedules is provided. Abrief report outlining general evaluation observations and suggestions for future use is mailed following the evaluation. � On -site home water use evaluation of the efficiency of residential and commercial plumbing fixtures at customers' homes and businesses. These evaluations are conducted by the [hv, and include replacement ofshovverheads, faucet aerators, and additional tools to reduce water use, as needed. � The annual Water Quality Report frequently includes irrigation tips because the report ie distributed near the beginning ofthe irrigation season. p Information on installing residential greyvvatersVyterns and building rainwater catchment systems. � Water auditing services are offered by the City to commercial and institutional customers, such City of Ashland 3-18 Municipal Water Conservation Element Draft 2O23Water Management and Conservation Plan The City offers financial assistance by providing rebates for lawn replacement. The residential lawn replacement program provides rebates of up to $1.25 per sq. ft. of turf removed and replaced with climate appropriate, low-water use landscapes and efficient irrigation systems. Ashland's Conservation Division has provided water efficient irrigation spray heads and other equipment to the Parks and Recreation Departments. Given the Conservation Division's experience performing irrigation system evaluations at customers' locations, the Conservation Division intends to begin providing irrigation system evaluations at select City parks within the next 2 years. An additional measure for implementation within the next 2years include providing financial incentives for irrigation contractors to install water -wise landscaping. Over this period, the City will begin to define these measures and seek implementation. Five- Vear Benchmarks 0 Maintain existing technical and financial assistance measures as described. 0 Within 2 years, begin performing irrigation system evaluations at City parks. Within Z years, establish and implement a program to provide financial incentives for irrigation contractors to install water -wise landscapes. 3_5,2Supplier-Financed Retrofit or Replacement of Fixtures The City of Ashland offers financial incentives in the fpnn of rebates for replacing inefficient fixtures and provides water efficient devices to customers: � Rebate of $200(for residential customers) and $250(HOAsand commercial customers) are provided for the purchase of EPA WaterSense labeled Smart Irrigation Controllers. � Shovved)ead4faucet aerators, and moisture meters are provided free upon request, offered as part of the indoor and outdoor evaluations, and distributed at some events attended by the [hv (e.g., Salmon Festival). w Rebate ranges of up to $75 for the installation of an EPA WaterSense labeled toilet (1.28 gallons per flush). Rebate amount depends on the number of toilets installed and rate of flush of the toilet(s) being replaced. m Rebates are given to residential customers who purchase clothes washers with the EPA ENERGY STAR label. Rebates are $8Oifthe home has anelectric water heater and $5Oifthe home has a gas water heater. ° Rebates may be provided to commercial cusb]no8r3 for the installation of water efficient devices such as water efficient dipper wells and ice machines. These rebates are offered on a case -by - case basis following the results of water use evaluations performed by the City, Inaddition tothese ongoing offerings, the City intends toplan for and beginoffehnggnanisiolovv- Municipal Water Conservation Element Draft 2023 Water Management and Conservation Plan Measure Benchmarks w Maintain supplier -financed retrofit and replacement measures Within 2 years, develop and implement grant program eligible to low-income residents focused on the installation of water efficient fixtures. 3.5.3 Rate Structure and Billing Practices that Encourage Conservation The City ofAshland bills customers monthly based on an inclining block rate structure that includes seasonal pricing. These features of the rate structure encourage water users to use water efficiently. The City intends to evaluate modifications to its rates to further incentivize efficient use of water. These modifications could establish commodity charges that are more progressive than the current charges. A cost ofservice study may beperformed prior toevaluate this option. Five- Year Benchmarks 0 Continue billing customers monthly for the amount of water used, at least in part. * Over the next 2 years, consider revising the commodity charges to make them more progressive. 3.5.4 Water Reuse, Recycling, and Non -potable Opportunities Aypart Ofthe development of this WMCP, the MAC considered five types of large-scale projects related to the use of reclaimed water. The full results are described in Exhibit 2 of Appendix C. In summary, these project types included the use of reclaimed water by one or more customers; use of untreated well water; capture, treatment, and use Ofstorrnvvater; discharge of reclaimed water into Ashland Creek and Emigrant Lake; and reuse of water at industrial customers' sites. The City intends to use this list of projects to determine if further study is warranted for any of these project types. Graywaterand rain catchment systems can help customers offset the use ofCity water or water provided 6vTIQ. To encourage customers to install these systems, the [itv's vv2bsite includes videos of presentations on the topic ofgreyvveterand a planning and installation guide for rain barrels. The [ih/ has also hosted presentations on these topics to civic groups. Measure Benchmarks * Continue promoting g ramd rain catchment systems. w Within the next 5yeans, using the list oflarge-scale reclaimed water use projects (Exhibit2 of Appendix Q consider further study of one or more of the most feasible projects. 3.6 Other Measures Ashland promotes other means of conservation, including the following: w City code (18.04.04.30) requires that commercial, industrial, non-residential, and mixed -use developments subject to Site Design Review shall usevvater+wise strategies. For example, the code requires that plants must be primarily drought tolerant, landscaped areas must be mulched, and lawn areas are torepresent asmall area ofthe overall landscaped space. City of Ashland 3-20 Municipal Water Conservation Element Draft 2023 Water Management and Conservation Plan w Three landscape demonstration sites are managed hvthe City. Atthese sites, the City has installed water -wise landscape plants or replaced turf with landscaping or artificial turf. ° From 2012to 2019, the City estimated the volume of water saved as a result of the City's provision of water efficient devices (e.g. showerheads) and appliance and fixture rebates. Data and water savings for 2019 is shown in Exhibit 3-2. Exhibit 3-2'Water Savings Estimate, 2019 Toilets Shovverheads Aerators Kitchen Washing Machine Outdoor Audits [onnp|e1ed lawn replacements Total Number Distributed/Rebates Given 87 145 151 104 35 40 II Estimated Annual Savings 410,443 898,813 295,650 249,113 189,070 400,000 ]35490 City of Ashland 3-21 Municipal Water Conservation Element City of Ashland 3-22 Municipal Water Curtailment Element Draft 2O23Water Management and Conservation Plan This section satisfies the requirementsm/OAR 69D-&96-D/67/D—(4). 7hisr/le requires a description of past deficiencies and any current capacity limitation. It also requires inclusion of stages of alert and the associated triggers and curtailment actions for each stage, Curtailment planning is the development of proactive measures to reduce water demand during periods oftemporary shodegesofsuppl>(ThegoalofthisPlanistodefineobjectk/echtehaandacLions to prepare the City for management of water supplies in these types of events. This VVK4CP addresses the need to maintain essential public health and safety while applying curtailment measures in an equitable manner that minimizes in1p8CLS On economic activity and lifestyle to the greatest degree possible. This may include more restriction on uses deemed less essential. This WMCP incorporates curtailment procedures described in Ashland Municipal Code (AMC) Chapter 14.06 as amended November 17, 2020, but is not entirely consistent with the AMC. For example, the AMC prohibitswater-wastingactivities generally defined in AMC 14.06.01O] as irrigating plants between certain hours of the day, at any stage, whereas this Plan imposes increasingly restrictive measures for each successive stage of alert, and does not prohibit irrigation outright. Thus, avvater-vvasdng activity as defined in the AMC may be allowed in one or more of the stages in this WMCP. Moreover, this curtailment plan is atleast a* stringent as K4VV's curtailment plan published in MVV's 2017VVK4[P, meeting erequirement ofthe surplus water agreement between the two water providers. Plan concurrence helps ensure that restrictions imposed by K4VValso will be observed by Ashland given the shared infrastructure and source of supply of Lost Creek Reservoir. To the extent that is practical, Ashland will encourage actions that are regionally consistent and able to be communicated to the public with a unified message. Note that in some cases, Ashland may experience a shortage of supply whereas other regional water providers, such as MVV, may not, leading to the imposition of this curtailment plan b«Ashland only, While this Plan includes specific triggering conditions, it should be recognized that the circumstances to which this WMCP may apply could vary in terms of severity as well as whether they are anticipated or occur suddenly. The time of year during which curtailment is needed would also impact what types of actions might be appropriate. Some events might impact only o portion of the water system, with actions tailored accon]ingly. This Plan is intentionally thorough to enable a variety of options to be quickly identified for consideration in potentially stressed circumstances, with the understanding that some proposed actions might not be implemented or may be deferred to later curtailment stages. The objective of this VVK4[P istherefore to provide guidance while allowing flexibility to respond according to specific circumstances. The City evaluated emergency events that could impact its system and identified the following potential causes ofwater supply shortages. 0 Long-term drought City of Ashland 4-1 Municipal Water Curtai|mmtE|amont Draft 2023 Water Management and Conservation Plan 0 Fire in the watersheds of the City's sources of supply that affects water quality ° Contamination such as from a chemical spill, which necessitates shutting down either water source w Flooding that forces shutdown ofone nrmore facilities • Landslides or other natural disaster that damage water pipelines or facilities • Power outages, particularly those impacting thoWTP * Facility orequipment failure, either from natural or human causes The methods b«which the City can continue tomeet demand during one o[these events isdescribed below. 4.2 History of Water Supply Deficiencies and Capacity Limitations ~�cu�^ m�U��«��ons ~..^. 6900860160`~/ The City's three water sources —Ashland Creek, the TID canal, and the Lost Creek Reservoir —typically have met the Chv'ssystem needs. However, the City has experienced supply deficiencies in2001 and 2DO9,asnoted inthe OtV'sprevious VVM[P,and more recently in2O14,201S,ZO18,and 202O.In2014, 2O15,and 201D,alow snow -pack inthe watershed led tohistorically low sDovvDlelt,contributing tolow Reeder Reservoir levels and prompting the City to request that customers reduce water use, though the City did not implement its curtailment plan. In2O20,the City implemented Stage 1 ofits curtailment plan in response to several events that contributed to a supply shortage. In that year, the City experienced a below average water year, with only 13.47 inches of rainfall (the average water year is 18.35 inches), resulting in an earlydrevvdovvn of Reeder Reservoir (July 11, 2020A.12In response, the City started treating TI[}water onJuly 21, 2028, but had to stop treating this supply on August31, 2020 due towater quality concerns resulting from an algal blOOnn within theTlD system. Shortly thereafter, TIC) shut off the supply to Ashland canal (used by some City water customers for irrigation purposes) due to issues at the Green Springs power plant created byawindstorm on Septernber8. City staff intended to begin supplementing Reeder Reservoir supplies with water from Lost Creek Reservoir via TAP the week of September 8th, but on September 8, the catastrophic Alrneda fire impacted the abilities of the Cities of Talent and Phoenix transmit water via the TAP intertieto Ashland. The lack of additional supply from TIC} and via TAP, coupled with unseasonable temperatures for September and a low-water year, prompted the City to initiate water curtailment Stage 1 on September 14, 2020,vvhich was lifted on October 28,2O2U. 4.3 Capacity Limitations and Drought Response The diversion and transmission infrastructure associated with the CitV's primary water supplies exceed the City's recent peak summer demands of approximately 6 mgd. During periods of sustained high 12 City of Ashland. 2021. City ofAshland Water Suqp�Upoate and Drought Management Plan. May 3,2021. City of Ashland 4-2 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan demand orlow quantities ofsupply from Ashland Creek and Lost Creek Reservoir, the City may rely on Partner Cities listed in the Coordinated Water Management and Water Sharing Agreement for excess supply. This source of supply may also be utilized if the City experiences one of the emergency events that causes a water supply shortage. Should water be unavailable or severely limited from these sources, the City may be able to truck in water obtained from neighboring water providers and may need toimplement the following curtailment plan. The City has adopted a five -stage curtailment plan to be invoked in the event of a water supply shortage thatjeoparclizes or mayjeopardize the City's ability to meet system demands. These stages include increasingly stringent curtailment responses and are designed tobeinitiated and implemented inprogressive steps; however, stages can be skipped to accommodate the severity of a shortage. The curtailment plan includes both voluntary curtailment measures in the first stage with mandatory measures in Stages 2 through 5. Compliance measures in later stages would likely be more acceptable to customers if voluntary and less restrictive measures have been attempted first. Upon implementation of a curtailment stage, there will be ongoing reevaluation to determine the appropriate curtailment stage. Moreover, atany stage, additional restrictions can be imposed if deemed necessary. Exhibit 4-1 presents the five curtailment stages, as well as the stages' initiating conditions (i.e., triggers).13 The curtailment plan may be enacted for the entire system, or only in those geographic areas that are directly impacted bythe water supply shortage. The City Manager may broaden or restrict the scope of enactment at any time for the duration during plan implementation. Exhibit 4-1.CurtaiUment Stages of Alert and Initiating Conditions Curtailment Stages (Curtailment Initiating Conditions Response) Stage (Internal� &sehesofin6icau,nsuggest that afuture sho�ageispossib|ethese may include drought - Planning) related conditions or foreseeable operational factors that prevent the City from meeting demand inwhole orpart Continued and/or further indicators raise concerns about the ability to meet supply needs Stage (Voluntary) unless demand levels are reduced, or Sustained demand reaches or is anticipated to reach 90% of supply or delivery capacity Indicators show that supply and/or delivery capacities are strained to meet current demand levels; these may include: Stage (Mandatory)' Sustained demand reaches orisanticipated toreach 9S%ofsupply ordelivery capacitiesor Water storage facilities are not routinely refilling, and City Manager determines that continuation could result in inability to meet fire protection or other essential needs. 13 AMC 1ao4.0soidentifies only four stages of alert, whereas this curtailment plan lists five in order to match the number of stages of MW's curtailment plan. Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan Curtailment Stages (Curtailment Initiating Conditions Series of indicators show that water consumption levels must be immediately reduced; indicators may include: Stage 4 Sustained demand is exceeding normal supply or delivery capacities, or (Mandatory) Water storage facility(ies) is/are only 2/3 full, and City Manager determines that ability to meet fire protection or other essential needs is jeopardized. Supply or delivery capacities have been reduced or are anticipated to be reduced by up to Major water use reductions are deemed necessary to avoid system failure, inadequate fie protection capability and/or to assure protection of water quality,- indicators may include: Stage Sustained demand continues toexceed supply ordelivery capacities, or (Mandatory) Water storage facility(ies) is/are only 1/3 full Supply source cxmajor facility is lost, reducing supply ordelivery capabilities tuless than 6SY6 of normal capacities 4.5.1 Stage 1 (internal Planning) Stage 1 is intended to raise awareness of the potential for water shortage based On preliminary indicators, such as drought -like conditions leading to low reservoir levels oroperational constraints, such as planned infrastructure repair orreplacement. Voluntary, but non-specific conservation activities may be encouraged. Under this stage, the City may take the following actions: � Assemble aWater Shortage Action Team composed of public outreach, utility billing, water conservation, and public works water staff to determine the likelihood of a shortage and define outreach activities. a Notify members of the City Council. Define appropriate internal actions tominimize waste o[perception of waste byCity operations. Determine whether activities such as main flushing and reservoir cleaning should be immediately reduced oraccelerated tncomplete inadvance ofa potential higher level of curtailment. Contact landscape maintenance contnactor(s)and Parks Department responsible for City sites to request that sprinkler maintenance needs be addressed, and appropriate sprinkling schedules followed. * Notify wholesale city customers of the potential for a water supply shortage. 4.5.2 Stage 2 (Voluntary) This status will activate more extensive outreach toinform customers of the potential for water City of Ashland 4-4 Municipal Water Curtailment Element Draft 2823Water ManaXemontandOoneorvutonHan Stage 2 City Actions The Cit«'sactions will include the following: * Establish aCity-wide water reduction goal for system demand. w Re -convene the Water Shortage Action Team to assess the likelihood of a shortage, define demand reduction goals, define outreach activities, and evaluate the possible need for additional personnel to assist with outreach and customer assistance activities. a Notify members of the City Council and other City officials, � Re-evaluate appropriate internal actions to minimize waste or perception of waste by City operations. Remind landscape maintenance contractors and Parks Department responsible for City sites that sprinkler maintenance needs must addressed, and appropriate sprinkling schedules followed. w Notify staff and/or officials of wholesale city and Water City customers of the curtailment determination, along with their need to enact equivalent provisions to assure that their efforts are no less intense than those imposed by the City. Inform them of water reduction goals, 0 Consider providing direct notification to the following: o Representatives from sectors that might be most influential in causing water usage reductions. Atthis stage, the focus would beonwater uses that are considered less essential, such an landscape irrigation, rather than those that would result in economic impacts. o Businesses that could be impacted if Stage 3 status becomes necessary, such as car washes, pool contractors and landscape contractors. ° Provide general notification 1ocustomers. Such notification will include adescription ofthe current water situation, the reason for the requested actions, and a warning that mandatory restrictions may be implemented if voluntary measures are not sufficient to achieve water use reduction objectives o[ifconditions worsen. ° Consider initiating orexpanding customer educational programs toassist customers in implementing curtailment actions. Examples might include giving presentations for homeowners and landscape managers and visiting customer locations tO provide assistance in adjusting sprinkler schedules. � Consider distribution Oflow-cost items such as toilet dye tablets, 8ff[ientshovverh8ads, low flow aerators, early closing toilet flappers and hose nozzles, which would yield water savings and raise awareness of the water shortage situation, w Monitor and report results of curtailment efforts and progress in meeting demand reduction 0 Implement Stage 1 restrictions per AMC 14.06.01 S regarding water allocations by meter size. 0 Implement AMC 14.06.08, temporary rate surcharges for use beyond allocation. City of Ashland 4-5 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan Stage 2 Customer Actions The following voluntary actions may be requested of customers when Stage 2 is triggered: � Request reduction in City-wide water use by the percentage determined to be the goal based onthe comparable month inthe prior year. 0 Manage landscape watering. The following guidelines are encouraged: Water outside plants only between the hours of9IX) p.m. to 9:00 a.m. May through ]u|« and 8 p.m. to 9 a.m. August through October, except for systems on drip irrigation systems, which may beused anytime. b. Encourage use of timing devices when watering with hoses. c. Suggest adherence &] weather -based irrigation schedules, provided onthe City vvebskeor other potential venues, d. Encourage sprinkler maintenance and adjustment to repair leaks, and minimize conditions such asover spray and high pressure that result inobvious water waste. e. When in use, hoses should be equipped with nozzles that maximize effectiveness of the spray pattern and shut off when not activated. f. Encourage repair of all known customer leaks. B. Reduce vehicle washing and use facilities that recycle water. Manual car washing should include use of a bucket and hose equipped with a shutoff nozzle for brief wetting and h. Request that exterior paved surfaces be swept, rather than washed. If washing is necessary for such reasons aspublic health orsafety, use ofwater brooms that provide maximum cleaning with minimum water usage iSencouraged. 4~5.3 Stage 3(M@ndafory) Stage 3issimilar toStage 2except that Stage 3measures are mandatory. Stage 3 City Actions Re -assess City-wide water reduction goal for system demand. Re -convene the Water Shortage Action Team to assess the effectiveness Ofactions taken in Stage and re -define demand reduction goals. Define additional outreach and enforcement measures, and re -assess the possible need for temporary staffing increases to assist with outreach, monitoring and enforcement. 2. Inform members of the City Council. Review actions tominimize waste orperception ofwaste byCity operations. Make appropriate reductions in hydrant and water line flushing without cunnpnn[ni5ing water quality. Determine what City of Ashland 4-6 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan other customers. Confirm that irrigation ofCity-owned skesisinconfonnancevvkhrequirennents 4. Notify City officials/staff of the changed curtailment status. Include direct notification to departments of any actions that may be relevant to their operations. Notify staff and public agency customers of the changed curtailment status. Inform them of any water reduction goals. If possible, provide assessments of their performance in Stage I based on meter readings and observations. Remind other wholesale customers of the need to enact equivalent provisions to assure that curtailment efforts are no less intense than those imposed by the City. 8. Contact high use customers to encourage water use efficiency. Inform them of the potential future need for greater reductions, and solicit their input on how such reductions might be most equitably applied, while minimizing economic impact. 7. Contact others on the Contact List included as Appendix F, with a focus on those who will be most impacted by current and possible future curtailment actions. As deemed appropriate, meetings may be convened to enable input to be received relative to potential actions that may be taken. K Expand notification and outreach activities to customers as defined by the Action Team. This may include targeting specific customer groups. For example, restaurants might be encouraged to avoid serving water except upon request, and motels might be encouraged to promote reduced linen laundering. Translation and dissemination of information through Spanish-speaking media will also be pursued. 9. Monitor and report results of curtailment efforts and progress in meeting demand reduction goals. Keep City employees informed. 10. Implement AMC1�06.08, temporary rate surcharges. 11. Implement water allocations by meter size. Stage 3 Customer Actions Except as modified below, all voluntary customer actions recommended in Stage 2 become mandatory. Landscape watering shall besubject tosome orall ofthe following conditions. Landscapes that were installed within the previous 40 days will be allowed some flexibility to enable plant establishment. a) Time-ofdayguidelines inprevious stage becomes mandatory, except for areas irrigated completely with drip, soaker or other watering method that applies water directly to the root zone without spray. b) Use of a hose bib mounted timing devices required when sprinkling from hoses. d Landscape irrigation should fnUovv a weather -based schedule, which will be provided on the City Web site, the Watering Info -line and by other means. This schedule may afford preference to ornamental trees and shrubs, which if lost would take years to re-establish. Lawn sprinkling City of Ashland 4-7 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan schedules might encourage dormancy, watering at a |nvver percentage of ET to keep roots alive but without the goal of maintaining a uniformly green appearance. d\Sprinklers and other irrigation components shall berepaired, adjusted and operated without waste. Prohibited waste may include, but would not be limited to leaks, over -spray ofmore than one foot onto paved surfaces, misdirected spray patterns, obvious runoff and operation at clearly excessive pressures. 3. Planting of new lawns and annual plants may be prohibited. Planting of shrubs and trees would be allowed, possibly subject tn verified soil amendment and mulching (aimed at water retention) and/ or irrigating with drip, soaker hose or similar root zone water application method. I When in use, hoses must be equipped with nozzles that direct water and shut off when not activated. 4. Require repair Ofall known customer leaks. 5. No washing of personal motorbikes, motor vehicles or recreational vehicles except at commercial washing facilities that practice wash water recycling, or by using a bucket and hose equipped with a shut-off nozzle for brief wetting and rinsing. 0. Except for vehicles that must be cleaned to maintain public health and welfare such as food carriers and solid waste transfer vehicles, washing of commercial vehicles shell only be done in a facility that recycles water. Washing Ofvehicles for sale on commercial lots may beafforded less stringent washing regulations tnenable limited washing on location, but at reduced schedules that result in significantly reduced water usage levels oscompared tnthe prior year. 7. No washing sidewalks, walkways, driveways, parking lots, tennis court, and other hard -surfaced areas, except when necessary for public health and safety or to the minimal extent necessary to loosen caked -on mud Vrsimilar circumstances. 8. Except as needed for painting or construction, no washing of buildings and structures. Nowater for a fountain or pond for aesthetic or scenic purposes unless it recycles water and is leak free (with refill demands being equivalent tothe current ETrate). 9. Non -compliant ponds that support fish will be afforded reasonable time to move fish or repair leaks, 10. Pools and hot tubs shall not be drained, and shall be managed to minimize the need to re -fill. This may include requirements for covering when not in use and other actions. 11. Water for the initial filling of new swimming pools may be restricted. Pools already under construction prior to imposition of such regulations will be allowed to fill, but may be subject to rate and time of day restrictions. 12. Where potable water is used On golf courses, it shall be restricted to watering only tees and greens. 13. Use of potable water for dust control or street cleaning may be disallowed or made subject to regulations setting rn@xirnVnn frequency or rate of application, City of Ashland 4-8 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan 14. Restrictions may be placed onuse of water from hydrants for any purpose other than firefighting and flushing deemed necessary to maintain water quality. 15.bladdition toapplicable items above, the City and wholesale city customers should adhere tothe a. Amend street sweeping activities to minimize or eliminate use ofpotable water. If non - potable water is used, this shall be advertised on the sweeper. b. The fire department should discontinue training exercises that use water c. Cease use of decorative fountains d. Reduce hours of operation or make relevant operational changes to manage water use at pools or other water recreational facilities. Cease use of any water spray recreational facility that does not re -circulate water. e. Continue to decrease water use at fields and facilities determined to be less critical. f. Retrofit restrooms in city -owned facilities with water efficient fixtures. 4.5.4 Stage 4(Ma0d@tory) AiStage 4`nonessential water use must beseverely curtailed, and economic impacts cannot be avoided. The goals of the City's response will be to maintain water supplies necessary for health and safety needs of the community while minimizing economic hardship. Stage 4 City Actions Re -convene the Water Shortage Action Team to define updated City-wide demand reduction goal, review and assess actions taken to date and evaluate new actions to be taken. Rationing protocols should be defined and uses prioritized. For example, fire suppression and critical sanitation needs for hospitals will be among uses given the highest priority. Implement temporary Fate surcharges. The need for additional temporary staffing for expanded outreach and enforcement of mandatory water restrictions will also be re -assessed. 2. Contact members ofthe City Councilors. A special meeting may be called. Re-evaluate actions to minimize waste or perception of waste by City operations. Make appropriate reductions in hydrant and water line flushing without compromising water quality. Consider prohibition on activation/flushing of newly installed water lines orallow only during off-peak nighttime hours. Verify that irrigation of City owned sites is in conformance with requirements below. 4. Nnhh/ staff and officials of the City of the changed curtailment status and updated City-wide water reduction goals. Direct notification will bemade toindividual departments that may beimpacted by new regulations. City of Ashland 4-9 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan Notify staff and public agency customers of the changed curtailment status, updated City-wide water reduction goals and the continued need to maintain actions equivalent to those being taken by City. D possible, provide assessments of their performance in Stage 3, based on meter readings and/ orobservations. 6. Expand notification and outreach effnM3 to convey the severity of the conditions, and possibly include outreach options listed for prior stages, but not yet taken. Translation and dissemination of information through Spanish-speaking media will be continued. 7, Notify high -use customers of water volume limits and rationing protocols. Ei Contact and/ ormeet with others onthe Contact List included asAppendix F,particularly those who will be most impacted by current and possible future curtailment actions. 9. Identify possible sources of water that may be used to supplement supply for specific functions. This may include provision of non -potable water for uses such as dust control or watering of high priority landscapes orgardens. 10. Re -consider orcontinue distribution oflow cost items identified in Stage 3 that would yield water savings and raise awareness ofthe water shortage situation 11. Monitor and report results of curtailment efforts and progress in meeting City-wide demand reduction goals. Keep all City employees informed. 12. Implement AMC 14.06.08, temporary rate surcharges. 13. Implement Stage 2 restrictions per AMC 14.06D15 regarding water allocations by meter size. Stage 4Customer Actions Except as modified below, provisions imposed oncustomers inStage 3 will remain ineffect, and options listed in that stage but not implemented, will be re-asSeSSed.The following additional or modified measures may also beadopted: 1. Further restriction oflandscape irrigation, with regulations to b8provided Onthe City Website,the Lawn Watering Info -line and other potential venues, are as follows: Watering of turf may be prohibited or allowed only one day per week to keep roots alive while grass goes dormant. b. Shrub watering will follow a restrictive schedule, reflective of current ET or a fraction thereof, along with plant survival needs. Tree watering shall beaccomplished with use ofsoaker hoses orsimilar methods that apply water directly to the root zone, rather than broadcast spraying, Frequency and volume allowed will he established through consultation with the CitV's Arborist and/or other tree experts. Use of non -potable water for this purpose may be encouraged. d. Time -of -day watering provisions imposed in Stage 3 remain in effect for all spray irrigation. City of Ashland 4-10 Municipal Water Curtailment Element Draft 2023Water Management and Conservation Plan e. Use of hose bib mounted timing devices will be required when irrigating from hoses. Sprinkling will he limited to certain days of the week. Allowances will vary according to season and plant type. g. Sprinklers and other irrigation components must be repaired, adjusted and operated without waste as defined in Stage 3. h. Exceptionstothese regulations may begranted atthe discretion ofthe Cit«'s conservation staff upon documentation that the landscape was installed within the previous 48days orisdeemed ahigh priority public use area. Z. Noplanting new landscapes. 3. Noconstruction orinstallation ofnew pools mrhot tubs shall beinitiated, and existing pools and hot tubs may not be drained to less than 90 percent of capacity and refilled. Further restrictions on the filling of pools and hot tubs might also be imposed. Exceptions may be granted by the [itv's conservation staff if the pool or hot tub's use is required by a medical doctor's prescription or is deemed a high priority community recreational or health facility. 4. No water for a fountain or pond for aesthetic or scenic purposes unless necessary to support fish, and is leak free as defined in Stage I Measures shall betaken to move fish to aquariums or other smallest reasonable tub orponds. Except for vehicles that must be cleaned to maintain public health and welfare such as food carriers and solid waste transfer vehicles, washing of vehicles shall only be done in a facility that recycles water. This shall apply to all vehicles, including motorbikes and recreational vehicles, whether or not personal, commercial wrdisplayed onsales lots. 6. No potable water use for dust control orstreet cleaning. 7. Stop serving water in restaurants unless requested by the customer. This action generates awareness for curtailment, and [educes use ofwater for washing glasses. 8. Hotels and motels shall discourage daily linen replacement k»providing procedures for guests to opt for less frequent laundering. 9. No new water line extension work shall be initiated except as approved by the [ih| 10. No use of water from hydrants except for firefighting and flushing deemed necessary to maintain water quality. 11. No water running to waste onto paved surfaces or into gutters. 4~5~5 Stage 5 (Mandatory) Stage reflects an extreme circumstance in which water available is considerably less than normal demands, and it is imperative that all customer sectors participate in immediate demand reductions. This situation is most likely to result from a sudden event that severely impacts a major system component or affects multiple system components simultaneously. Examples might include failure of City of Ashland 4-11 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan transmission main or intake structure, a chemical spill impacting a water source, a malevolent attack nn the system or multiple failures resulting from an earthquake or flood. However, a less dramatic event such asanextended power outage affecting the Ashland VVTP,but not the majority ofcustornens,cou\d also lead tosudden and significant curtailment needs. Stage 5 City Actions The goals of[hv'sresponse are toavert system shutdown, and prevent adverse health and safety impacts to the community. City will respond with the following actions: Reconvene the Water Shortage Action Team todefine demand reduction needs and critical actions to be taken. Rationing protocols will be defined and water uses prioritized. Fire suppression and critical sanitation needs for hospitals will be among the uses given the highest priority. 2. Notify the local news media to request their assistance in notifying the public of the severity of the situation. This will include dissemination of information through Spanish-speaking media. 3. Contact staff and public agency customers. Inform them of water rationing determinations. 4. Contact the largest customers to inform them ofapplicable water rationing. 5. Mobilize City resources to perform rigorous public outreach and enforcement. G. If deemed necessary, contact local lovv enforcement and fire departments to enlist help in notifying customers. 7. lfwater inthe system is unsafe tndrink, �the Oregon Drinking Water Program will be contacted, and their assistance requested for responding to the problem. 8. If applicable, consider options for renting a water hauling truck and purchasing water from nearby communities, sending customers to a per -designated water distribution location, and supplying bottled water. 9. Implement AMC 14�.08, temporary rate surcharges. 10. Implement Stage 2 restrictions per AMC 14.06.015 regarding water allocations by meter size, Stage 5-Customer Actions Customer water use restrictions in Stage 5 will include those listed in Stage 4, except as modified below: No irrigation of landscapes unless a greywaterinigadon system is in use IfStage 4 remains in effect for an extended duration, and Ongoing actions are proving successful in adequately maintaining reservoir levels, limited watering directly tOthe root zones of significant large trees and shrubs may beexempted from this ban. Frequency and volume allowed will beestablished through consultation with the [itY'sArborist and/or other tree experts. Use of non -potable water for this purpose may be encouraged. City of Ashland �� 442 Municipal Water Curtailment Element Draft 2023Water Management and Conservation Plan 2. Noconstruction nrinstallation ofnew pools orhot tubs shall beinitiated, and existing pools and hot tubs shall not be drained and refilled. No water to refill swimming pools or hot tubs. Exceptions may be granted by the Manager if the pool or hot tub is deemed to serve an important community health function. City code AMC 1/06.O15sets volume limits 6«customer category by curtailment stage for each size of meter. These are repeated below in Exhibit4-2. This table was nnmddled for this WMCP to reflect five stages, not four, asidentified inthe municipal code. City of Ashland 4-13 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan Exhibit 4-2-Water Allocation Table Customer Category Meter Size (inches) Stages (cubic feet) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 N/A = not applicable Whenever possible, activation of this Curtailment Plan and stages thereof will be by a majority vote of the City Council. However, initial actions under the plan may be initiated upon a determination of urgency hythe City Manager. The City Council, byamajority vote,rnaynascindthe determination upon finding that the emergency no longer exists, or that the original declaration was made in error (Ashland Municipal Code 14.06.020). The City has asserted authority to implement non -voluntary curtailment or suspensions ofwater service through Section 14D6Oofits Municipal Code. City of Ashland 4-14 Municipal Water Curtailment Element Draft 2023 Water Management and Conservation Plan Communication of a water shortage and the associated curtailment actions is critical to ensure timely and effective response by water users. The City will communicate specific actions users can take to reduce usage and may include a summary of the current water situation, the reasons for the requested reductions, and a warning that additional cutbacks may be required if voluntary or mandatory measures do not sufficiently reduce water usage. The following list identifies methods that the [i1v may use to notify its customers during any stage of alert: p Postings on bulletin boards, websites (including the City website), public restrooms and similar venues. m Press releases ° Social media alerts • Newspapers and radio announcements w Phone calls m Door-to-door visits (e.g. distribution of door hangers) • Water curtailment letters sent tocustomers m Contacting the local news media to request their assistance in notifying the public of the severity of the situation. This will include dissemination of information through Spanish- speaking media. w Providing notice onwater bills and through utility bill inserts If declaration of severe drought is declared by the Governor per Oregon Revised Statutes (ORS) 536.720, the Oregon Water Resources Commission may order political subdivisions within any drainage basin or subbasin to implement a water conservation or curtailment plan or both, approved under ORS 536.780. The conservation and curtailment elements of this WMCP meet these requirements. If Ashland is within a severe drought area declared by the Governor, such as Jackson County, the City will consider whether curtailment measures are needed to meet system demands. If ordered to implement a water conservation or curtailment plan during a declared drought, the City will comply by implementing the water conservation and curtailment provisions of this WMCP. Regardless of whether curtailment is needed, the City of Ashland will continue to encourage customers to conserve water. City of Ashland 4-15 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan T4140MR= This section satisfies the requirements of OAR 690-086-0170. This rule requires descriptions of the City's current and future service area and population projections, demand projections for 10 and 20 years, and the schedule for when the City expects to fully exercise their water rights. The rule also requires comparison of the City's projected water needs and the available sources of supply, an analysis of alternative sources of water, and a description of required mitigation actions. 5.1 Delineation of Service Area The City's current water service area includes the area within the City's municipal boundary as shown in Exhibit 2-2. Within the next 20 years, the City's service area is expected to grow to include all lands within the current UGB. Growth within the City is anticipated to include infill and redevelopment of existing land to accommodate projected population growth. In addition, the City anticipates that it will annex land within its UGB within the 20-year planning period of this WMCP. Water service will be expanded to annexed land as development occurs. Exhibit 5-1 shows the projected population of the City of Ashland UGB based on the Jackson County Coordinated Population Forecast 2022 through 2072, published by Portland State University in 2022.14 Using the 2022 report, the City calculated annual average growth rates (AAGRs) to interpolate projected populations for 2033 and 2043. Projected population beyond 2043 is shown to align with the timeline for demand projections in Section 5.3. The projections reflect an AAGR of 0.43 percent from 2023 through 2043 and 0.45 percent from 2043 through 2073. Because the projected populations are for the City's UGB, the 2023-projected population is higher than the City's current service area population. The average annual growth rate from 2070 through 2072 was extrapolated through 2073 to extend the forecast to 50 years. 14 Chen, C., Sharygin, E., Whyte, V., Loftus, D., Rynerson, C., Alkitkat, H. 2022. Coordinated Population Forecast for Jackson County, its Urban Growth Boundaries (UGB), and Area Outside UGBs 2022-2072. Population Research Center, Portland State University. City of Ashland 5-1 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan Exhibit 5-1. Projected City of Ashland UGB Population, 2023-2073 Year Forecast Population 2023 32,651 2033 23,611 2043 24,710 2053 25,942 2063 27'164 2073 28,379 OAR 090-08G-017OF0requires water demand projections for1Oand2OyeansanriattheoodwnofLhe municipal water supplier, longer periods. For this VVM[P,the City has developed water demand projections through 2073, 5'3.1 Conservation Measures' Impacts C3QDemand Water conservation savings are factored into the demand projections because of the use of historical demands in the analysis. These historical demands incorporate water savings realized from the City's comprehensive conservation program, federal water efficiency standards, and the strong water conservation ethic ofthe Ashland community, among other factors. While the [itV'splanned enhancements and expansion of its conservation program described in Section S may incrementally further reduce demand, emajority ofanbcipatedsovingsarelike|yrealizod.Forthepurposeo[vvater supply planning, the [ih/ is only incorporating those water conservation savings already realized. 5.3.2 Climate Change Impacts QMDemand For the demand forecast analysis, GSIWater Solutions, Inc. 8SSD,assumed that water demands would grow atthe same rate 8SAshland's water service population, with additional increases indemand caused by climate change. To evaluate the anticipat ' ed impact of increasing ambient air temperatures as a result ofclimate change on the [itV's demands, the Oregon Climate Change Research Institute (O[CRI) at Oregon State University conducted a climate change analysis for the City. [)CCRl's full report which also includes discussion of the anticipated impacts of climate change on the CitV'y water supplies, is included in Appendix G. A summary of the methodology and results is provided below. OCCRI's analysis of the City's 2011 through 2020 water demands showed that demand is sensitive to increases in temperature above 70'F. Specifically, OCCRI found that for each day that the daily maximum temperature is between 70 and 80'F in a given month, the monthly water demand increased by 2.9 percent over the baseline. Exhibit 5-2 (Figure 1 in Appendix G) shows the sensitivity of water demand toincreases intemperature inincrements of10"F,with grey shaded areas showing 95percent confidence intervals onsensitivity estimates. City of Ashland 5-2 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan Exhibit 5-2. Sensitivity mfMonthly Water Demand tmDaily Maximum Temperature 25 ao 45 55 65 75 85 95 105 Daily maximum temperature (IF) As shown in Exhibit 5-2, there is little difference in the sensitivity of water demand to increases in temperature from 70 to 110 0 F and confidence intervals (grey shading) overlap for each 1 O-clegree increment. These data suggest that when temperatures exceed 70'F, water users tend to use more water, with landscape irrigation likely the primary driver ofincreased water use. But, as temperatures increase into the 80s and 90s'F, water use does not increase by a significantly greater amount. Possible explanations for this pattern include that water users consciously reduce water use in response to conservation messaging when temperatures are especially high orthat water users are responding to tiered pricing by restricting usage during periods when temperatures are higher. Regardless of the reason for this pattern, it implies that the City will seethe greatest increases in demand because of temperatures exceeding a threshold of 70'F with greater frequency, rather than as a result of increases in maximum daily temperatures. Based on the demand sensitivity analysis, OCCRI estimated monthly climate change demand factors for each decade. The climate change demand factors reflect the percentage by which per -capita demands are projected toincneasebecaVSeofclirnatechange.O[CRIused two different greenhouse gas concentration trajectories, identified as Repre5entative Concentration fbthways/RCPsJ. (JCCRI evaluated the impact onthe CitY'sper-capita demand under RCP 4.5 and RCP O.5. RCP 4.5 is intended to represent an intermediate scenario in which emissions start declining by approximately 20458S8result ofglobal response toclimate change. Global mean temperatures are projected to increase b«35degrees °Fbythe end ofthe century. RCP 8.5isintended torepresent a scenario in which emissions continue at their current levels throughout the 21st century, resulting in warming of39°Fb«the end ofthe century. RCP 4.5isconsidered amoderate emissions scenario whereas greenhouse gas concentrations assumed by RCP 8.5 are Considered plausible over the short- term but may not be realistic over the long-term. Increases in The City's per -capita demand for each month and decade through the 2070sconnp8red to a 2011 through 2820 baseline under RCP 4.5 and RCP 8.5 scenarios are shown in Exhibits 5-3 and 5-4, respectively. City of Ashland 5-3 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan Exhibit 5-3. Monthly Climate Change Demand Factors, RCP 4.5 Scenario 2020s 2030s 2040s 2050s 2060s 2070s January 0% 0% 0% 0% 0% 0% February 0% 1% 1% 2% 2% 2% March 0% 1% 3% 4% 5% 5% April 1% 3% 4% 5% 6% 6% May 1% 3% 4% 6% 7% 8% June 1% 1% 2% 3% 4% 4% July 0% 0% 1% 1% 1% 1% August 0% 1% 1% 1% 1% 1% September 1% 2% 2% 3% 4% 4% October 1% 2% 4% 6% 7% 8% November 0% 1% 1% 2% 3% 3% December 0% 0% 0% 0% 0% 0% Exhibit 5-4. Monthly Climate Change Demand Factors, RCP 8.5 Scenario 2020s 2030s 2040s 2050s 2060s 2070s January 0% 0% 0% 0% 0% 1% February 0% 1% 1% 2% 2% 4% March 0% 1% 2% 4% 6% 8% April 1% 2% 3% 6% 7% 10% May 1% 3% 5% 8% 10°% 13% June 1% 2% 3% 4% 5% 6% July 0% 0% 1% 1% 1% 0% August 0% 1% 1% 1% 1% 1% September 1% 2% 4% 5% 6% 7% October 1% 3% 5% 9% 12% 14% November 1% 1% 2% 4% 5% 6% December 0% 0% 0% 0% 0% 0% Consistent with OCCRI`s findings regarding the sensitivity of demand to different temperature thresholds, demands are projected to increase the most during spring and fall, when the frequency that daily maximum temperatures exceed 70°F is expected to increase the most compared to the baseline. Exhibit 5-5 shows projected demand from 2023 through 2073 in 10-year increments under the RCP 4.5 scenario. Projected demands reflect conditions in typical years. During exceptionally dry years, resulting in greater water use for irrigation and other outdoor uses, peak season water demands may be higher. This is illustrated in Exhibit 5-5 with the inclusion of 2021 actual demands. Note that demand projections are based in part on the forecast population of the UGB shown in Exhibit 5-1. The City is expected to build out the current UGB over the next 20 years. As a result of climate change impacts, projected demands for 2033 are higher than would be expected if population increases were the only factors considered. City of Ashland 5-4 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan Exhibit 5-5' Projected Water Denmamd, RCP4`5 Scenario, 2023-2073 Peak Season Per Capita Annual (May - ADD yN00 Peaking WG0 Daily Demand September)~ (mngd) (nngd) Factor Population Demand (MG) Demand (gpc6) (MG) 2033 1'175 721 3.22 5.82 1.81 23.611 136 2043 1,237 758 3.39 6]0 1.80 24.710 137 2053 1.309 802 3.59 641 1.79 25,942 138 2063 1'378 843 3.77 672 1.78 27.164 139 2073 1/43 883 3.95 7.02 1.78 28.379 199 Exhibit 5-0 shows the CitV's projected demands under an RCP 8.5 emissions ycenario. Exhibit 5-6'Projected Water Demand, RCP 8.5 Scenario.2023-2073 Peak Season Per Capita Annual (May - ADD Peaking UGB Daily Demand September) (nng�) K&�D(mngd) Factor PmpwVatlmm Demand (MG) Demand (gpcd) (&0G) 20]] 1.177 722 3.22 5.81 1.80 23'611 137 2043 1,243 763 3.40 6,09 1.79 24,710 138 2053 1,320 808 3.62 641 1.77 25'942 139 2063 1,396 852 3.82 671 1J5 27,164 141 2873 1,471 895 4D3 7.80 1.74 28'379 142 For the purposes of evaluating the [itV's 18-yearand 20-year projected demands, the RCP 8.5 scenario provides on appropriately conservative evaluation for demand planning purposes, while over the full 50-yeartirnef arne of the CitV's projection, the RCP 4.5 scenario is likely most realistic. AS this VVK4[P's planning period is 20 years, the City selected the use of the RCP 8.5 scenario to define its 28-yearvva1er needs. Owen: Sentence or two here about why historical MDD is higher in recent years than projected for 2033. Was 2021 and 2022 extreme dry years, which our model doesn't account for? 5.4 Schedule to Exercise Permits and Comparison of Projecteli Ueeij,'to Available Sources In addition to evaluating the impacts of climate change on the City's demand, OCCRI also evaluated the anticipated impact of climate change on the City's water supplies, particularly changes in the timing of Ashland Creek peak strearnflows. OCCRI evaluated changes in strearnflow under both the RCP 4.5and RCP 8.5 emissions scenarios using three datasets. Of these, the Columbia River Climate Change (CNCC) City of Ashland 5-5 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan flows in the general shape and timing of peak discharge. Thus, the City is presenting outputs only from this CRCC-VIC model. Exhibit 5-7 show changes in monthly streamflows under the RCP 8.5 scenario. The projections for the RCP 4.5 scenario are not presented, as the RCP 8.5 scenario provides an appropriately conservative evaluation for demand planning purposes over the 20-year planning timeline described in this section. The output shows a pattern consistent with general predictions for climate change in the Pacific Northwest: the model projects an increase in winter flows and reduction in spring and summer flows as more precipitation falls as rain, and a reduced snowpack that melts earlier in the year compared to a simulated baseline of 2000 through 2020 streamflow.15 Exhibit 5-7. Projected Percentage Change from Baseline in the Combined East and West Fork Ashland Creek Basin Discharge, RCP 8.5 Scenario Month 2021 — 2030 2031 — 2040 Decade 2041 — 2050 2051 — 2060 2061 — 2070 2071 — 2080 Jan 20°% 28% 38% 50% 80% 94% Feb 13% 26% 45% 61% 83% 88% Mar 9% 18% 30% 35% 45% 42% Apr 5% 7% 6% 1 % -6% -19% May -7% -17% -29% -42% -52% -61 % Jun -21 % -40% -51 % -65% -71 % -76% Jul -15% -32% -36% -47% -45% -49% Aug -4% -6% -8% -9% -8% -8% Sep 5% -1 % -3% -10°% -8% -9% Oct 2% 2% -10% -12% -21 % -13% Nov 14°% 19% 26% 26% 31% 36% Dec 25% 36% 51% 55% 74% 87% Based on the projected demands in Exhibit 5-5 and Exhibit 5-6 and estimates of the natural flow available from Ashland Creek based on Exhibit 5-7, GSI evaluated the use of water from the City's sources of supply. In general, the City relies exclusively on Ashland Creek natural flow (delivered by pipeline from Reeder Reservoir). As Ashland Creek natural flow declines during the summer —typically by July —the City begins to draw down storage in Reeder Reservoir. Depending upon the City's demand, how much demand is met using natural flow, and the duration over which the City must draw on Reeder Reservoir, the City may need to augment using water from Lost Creek Reservoir under its Certificate 96166 and Permit S-54337. The City may also obtain water from TID via the Ashland Canal that is treated at the WTP to supplement water supplies when Ashland Creek natural flows are not sufficient to meet demand and to reduce reliance on Reeder Reservoir. However, during periods of drought, little or no water may be available to 15 OCCRI used a simulated baseline of 1991 through 2020 flows for the analysis. For the purposes of this wMCP, GSI is using a simulated baseline of 2000 through 2020 flows. Over the past 30 years, the available period of record for the U.S. Geological Survey gages on East Fork (14353500) and west Fork Ashland Creek (14353000) runs from October 1, 2002 through the present. In order to ensure consistency in comparing projected streamflow to the City's demand, GSI used a simulated baseline period as close to the actual baseline period as possible. City of Ashland 5-6 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan the [hv under its contracts with TID and 80R, as has typically been the case, so this source of water is not considered reliable and for the purposes of this WMCP is not considered as a source of supply when forecasting future water supply needs. In many years, particularly dry years, the City must augment its summer water supplies with the use of water from Lost Creek Reservoir. To prevent drawing dOVVD Reeder Reservoir to low levels before the end of the low -flow season, the City typically uses water from Lost Creak Reservoir via the TAP intertie and Reeder Reservoir simultaneously. This also lowers the [itY's nnaxirnurn rate ofuse from Lost Creek Reservoir, delaying the need to expand capacity of associated TAP infrastructure. The [it«swater rights for use ofAshland Creek natural flow and stored water from Reeder Reservoir are fully developed. ln addition, the City has used atotal volume of55U.6AFfrom Lost Creek Reservoir (delivered via the TAP intertie) in 2021, which has been perfected under Certificate 96166, The City has a remaining volume of 449.4 AF for development under extended Permit S-54337; the permit has a completion date of October 1, 2061. As shown in Exhibit 5-7, projected changes in decadal average flows are significant; however, yeaptu- yearvariability inflows exceeds the magnitude Vfthe projected changesunde[b0ihtheR[P4.5and RCP 8.5scenarios. Actual observed flow conditions from the creeks during the peak demand season in 2021—when drought -like conditions were observed —were worse than decadal average conditions projected for the 2070s associated with climate change. Gage records for East Fork and West Fork Ashland Creek donot provide 8complete record ofthe past century, but similarly dry years have occurred in2O18,2015,20141977,and 1931.This suggests that regularly occurring droughts are the primary driver of the City's need for resilient water supplies compared to climate change impacts. To projectvvhenthe[hvoouldutilizethefuUvolurneVfvvaterfnornLostCreekResen/Oi/und*rRannit S-54337,the City assumed ZU21 hydrologic conditions (drought -like conditions) and RCP 83 climate - warming scenario. As described above, for the purpose of evaluating the City's projected demands, the RCP 8.5 scenario provides an appropriately conservative evaluation for demand planning purposes through 2043. Exhibit 5-9 shows how the City could use its sources of supply and the timeline for using the full 1,0O0AFofLost Creek Reservoir storage authorized by Certificate 96166 and Per[0itS-54337, assuming no disruptions to Reeder Reservoir supply. The projection shows the City would use the full volume authorized under these water rights by 2047 under these conditions. By 2043, the City anticipates use mf961.OAFofwater from Lost Creek Reservoir, being 550.5&Funder Certificate 96186 and 4ll.2AFunder Permit 5-54337. City of Ashland 5-7 Municipal Water Supply Element Draft 2O23Water K4anaQementondConxawabonP|an Exhibit 5-8. Comparison of Demand and Supply through 2073, RCP 8.5 Scenario 1600 2047 Projected TAP Volume: 550,6AF 1200 1000 600 200 Ashland Creek Natural Flow and Reeder Reservoir TAP In addition to serving as an additional source of supply, Lost Creek Reservoir serves as a redundant source of supply for the City. During various operational scenarios, the City may need to use all 1,000 AF from Certificate 96166 and Permit S-54337 to meet demands, providing an additional 38 AF (12.4 MG) ofwater (1,O00AFtoq82ARbeyond ZO43 demands and approximately ] days ofuse based onanADD in 2043 of3.4O rngd. For example, disruptions in water supply from Reeder Reservoir may occur due to a fire in the Ashland Creek watershed. A 2023 analysis conducted by the City identified approximately 22 percent of the Douglas firs in the watershed were dead or dying, increasing the potential for fire. The watershed may also experience high turbidity events for which the [itv's \NTP is not designed to treat or a harmful algal bloom in Reeder Reservoir in summer. Under these scenarios, when Ashland's primary sources ofsupply are unavailable (Reeder Reservoir and Ashland Creek\,the City could require the full volume ofPermit S-54337(4494AF).Thus, given the projected demands described above and the need for a secure, redundant supply, the City is requesting access to the full amount of water under extended Permit S-54337(4494AF) for the 2O-yearplanning period ofthis VVK4CP,to2O43. Extended Permit S-54337 has a completion date of October 1, 2061 and the City expects to beneficially City of Ashland 5-8 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan OAR 690-086-0170(5) requires an analysis of alternative sources of water if any expansion or initial diversion of water allocated under existing permits is necessary to meet future water demand. The City intends to expand its diversion of water under Permit S-54337 during the planning horizon of this VVK4[P; consequently, this rule applies tothe City. The City views conservation as an additional source of supply and has sought to increase water efficiency of the City and its customers., The City has implemented and maintains a robust conservation program with a wide array of measures that encourage efficient use of water indoors and outdoors, as detailed in Section S. For example, the City offers multiple rebates to customers for vvatereficient fixtures (e.g. irrigation controller rebate) and practices (e.g. lawn reduction program); has adopted a five -tier water [ate structure, with the fifth de[ intended specifically to help reduce peak season use; and provides services to identify water savings opportunities at customers' Sites (e.g. home audit); among a host of other measures. The vast offerings of the program are a testament to the significant resources and commitment the City has committed to ensuring the efficient use of its water supplies. The results of its conservation efforts are Observed in its low-water losses (Section 2.8) and low per capita water use relative to historical usage (Section 2.6.1\, among other rneaaures.18Asdescribed in Section ], the City intends to expand its program to promote additional conservation savings. While additional conservation measures may further delay expansion of the Ckv's use of Permit S- 54337, conservation will not be enough to meet projected demands and projected demands for Lost Creek Reservoir stored water in the drought-yearscenariosdescribed above. Moreover, the costs to implement, administer, and maintain additional conservation measures may exceed the costs of utilizing PernnitS-54397 given that the infrastructure necessary to divert, treat, and convey 1,000 AF of water using Certificate 96166and Permit S-S4S97isconstructed and inuse. The City constructed the TAP intertie in 2015 to convey water from Lost Creek Reservoir authorized under Permit S-54S37.This pipeline also serves aSaninterconnection with other water suppliers inthe region and enables the City to share water among providers. As described above,the City participates in a water -sharing partnership under the Partner Cities IG/\ This I(SA establishes a framework for regional cooperation and provides the opportunity for Ashland and the other Partner Cities to sharp water supplies, thereby avoiding the potential for the Partner Cities to individually seek one or more newsources of supply to meet its future demand. The City also has an interconnection with TID, which enables conveyance of water from TID's sources under an agreement with TID to Ashland. This non -potable water is sold to 2,000 households delivered through a series ofditches for irrigation purposes and can be treated at the CitV'sWr[P for potable use 10The City acknowledges that hhas also benefited from the contributions vfincreasing uhngemfedera|wate,effidencymandaubund market forces for water using fixtures (e.g. toilets). The City has helped drive adoption of the most efficient fixtures by offering rebates for low flow fixtures, such astoilets, over time. City of Ashland 5-9 Municipal Water Supply Element Draft 2023 Water Management and Conservation Plan within the [hv's water system. In years that it is available, this source can take pressure off City water supplies during the summertime residential irrigation season. OAR 690-086-0170(6) requires a quantification of the maximum rate of withdrawal and maximum rnon1h|v use if any expansion or initial diversion of water allocated under an existing permit is necessary to meet demands in the 20-year planning horizon. The City is expanding its diversion of water under PerrnitS-54357. Consequently, this rule applies tothe City. The City anticipates use of the remainder of the undeveloped portion of extended Permit S-54337 of 449/4AFh«2043.This volume averages 3745AFper month (122K4Gper month) nfuse over a12- nnonthperiod and O/41nogd. Under OAR 69U-OU6-017O(/),for expanded orinitial dk/ersionofvvaterunderanexisbng permit, the water supplier is to describe mitigation actions it is taking to comply with legal requirements of the Endangered Species Act (ESA), Clean Water Act (CWA), and other applicable state or federal environmental regulations. The City intends to expand its diversion of water under Permit S-54337. Consequently, this rule applies to the City. However, the City is not required to comply with legal requirernentsspecifictoitsuyeofPernnit5-54337relatedtotheES/\CVVA,oroth2renvirnnrnental regulations. Under OAR 690-086-0170(8), if a municipal water supplier finds it necessary to acquire new water rights within the next ZOyears inorder homeet its projected demand, ananalysis ofalternative sources ofthe additional water is required. The analysis must consider availability, reliability, feasibility and likely envronrnenta|innpactsendaschedulmfordevelopnnentofthenevvsourcesofvvatecTheChvdnesnot anticipate the need to acquire new water rights within the planning period. City of Ashland 5-10 11111111 *°°fO ?:/»0 11,11\»»*?#}IEM #f*r« »° 1111111� III \2»} \\«)«.« © >r« ,.x� a Water Solutions, Inc. August ,20B Matt Brinkley Planning Director City of Medford 2OO5Ivy St Medford, (]R975O1 planning @dtVofmedford.Org Subject: Water Management and Conservation Plan for the City of Ashland Dear Mr. Brinkley, The City of Ashland has developed a draft Water Management and Conservation Plan (WMCP) to fulfill the requirements of Oregon Administrative Rules Chapter 690, Division 86 of the Oregon Water Resources Department. Under these rules, the water supplier will make its draft VVMCP available for review by affected local governments and seek comments related to consistency with the local governments' comprehensive land use plans. We are providing you an electronic version of Ashland's draft VVM[Pfor your review. Please provide any cprnrn8nts to me within 30 days from the date of this letter. If the VVM[P appears consistent with your Comprehensive Land Use Plan, a letter or email response tothat effect would be appreciated. You may send your comments to me at then kle@gsiws.com. If you have any questions, please feel free to contact me at 971-236-2550. Thank you for your Sincerely, GSJ\&ater Solutions Inc. Z14— 0, Tim HenNe Water Resources Consultant Enclosure 1000V'vVestemB|vd,Sube240 [nrvaUb,DR97IB P:54l75l�074S F�541J544211 1mm wwmkqs|w:mm Kristen Maze Cononnunhn Development Director City ofTalent POBox 445 Talent, DR97540 Subject: Water Management and Conservation Plan for the City of Ashland The City ofAshland has developed adraft Water Management and Conservation Plan (WM[P) to fulfill the requirements of Oregon Administrative Rules Chapter 690, Division 86 of the Oregon Water Resources Department. Under these rules, the water supplier will make its draft VVK4CP available for review by affected local governments and seek comments related to consistency with the local governments' comprehensive land use plans. We are providing you an electronic version of Ashland's draft WMCP for your review. Please provide any comments to me within 30 days from the date of this letter. If the VVMCP appears consistent with your Comprehensive Land Use Plan, a letter oremail response tothat effect would be appreciated. You may send your comments to me at then kle@gsiws.com. If you have any questions, please feel free to contact me at 971-236-2550. Thank you for your Sincerely, GSI Water Solutions Inc. Tim Henk]e Enclosure Joe Slaughter Community and Economic Development Director City ofPhoenix 220 N Main St Subject: Water Management and Conservation Plan for the City of Ashland Dear Mr. Slaughter, The City ofAshland has developed adraft Water Management and Conservation Plan OA/K4CP1 tnfulfill the requirements of Oregon Administrative Rules Chapter 690, Division 86 of the Oregon Water Resources Department. Under these rules, the water supplier will make its draft VVM[P available for review b« affected local governments and seek comments related to consistency with the local governments' comprehensive land use plans. We are providing you an electronic version of Ashland's draft VVM[Pfor your review. Please provide any comments to me within 30 days from the date of this letter. Dthe VVK4CP appears consistent with your Comprehensive Land Use Plan, a letter Vremail response tothat effect would be appreciated. You may send your comments to me atthenkle@gsivvg,cUnn. If you have any questions, please feel free to contact me at 971-236-2550. Thank you for your interest. Sin{gek/ GSJVVater Solutions Inc. Tim Henkle Water Resources Consultant Enclosure 100QN#esiemB|vd,Su|teI40 Corvallis, OX973B3 P:0lJ5I0745 F:541JS4,4Il1 1nfo@gdwy.mm �vvvnw.gdwo.mm ShBndell Clark Planning Manager Jackson County 10South Oakdale Ave, Knn1OO Medford, 0R975O1 Subject: Water Management and Conservation Plan for the City of Ashland The City ofAshland has developed adraft Water Management and Conservation Plan (VVK4[P) to fulfill the requirements of Oregon Administrative Rules Chapter 690i Division 86 of the Oregon Water Resources Department. Under these rules the water supplier will make its draft VVMCP available for review by affected local governments and seek comments related to consistency with the local governments' comprehensive land use plans. We are providing you an electronic version of Ashland's draft WMCP for your review. Please provide any comments tornewithin 3Odays from the date ofthis letter. lfthe W0NCP appears consistent with your Comprehensive Land Use Plan, o letter oremail response to that effect would be appreciated. You may send your comments to me at thenkle@gsiws.com. If you have any questions, please feel free to contact me at 971-236-2550. Thank you for your Sincerely, GSI Water Solutions Inc. I-11r4 0, 7lnn Henk]e Water Resources Consultant Enclosure 16008*WeS ltem 0wj,11u|t e24O [urwU|s,DR97333 P:f4l.B3�0745 F:S4lJ544211 info@ybwn.mm www.gsimo,mm Brad Taylor Medford Water Commission 200 S Ivy St, Room 177 Medford, DR97501 Subject: Water Management and Conservation Plan for City of Ashland Dear Mr. Taylor, The City of Ashland has developed a draft Water Management and Conservation Plan (WMCP) to fulfill the requirements of Oregon Administrative Rule Chapter 690, Division 86 of the Oregon Water Resources Department. Given the relationship between Ashland and your water district, we are providing you with an electronic copy of the draft VVK4[P as a coUrteay If you have any questions, please feel free to contact nneat971-236-255Oor Sincerely, (SSJWater Solutions Inc. Tim Henkle Principal Water Resources Consultant Enclosure 1600SW Western B|vd,Sube24O Corvallis, O%97B3 P:54lJ5l0-1,45 F:541J5442ll |n&Ogdwa,com www.g5|w5.mm -%g n Tina Kotek, Governor May 5, 2023 Scott A. Fleury City of Ashland 20 N. Main Street Ashland OR, 97520 Dear Mr. Fleury, Shaven Haynes Watermaster District 13 10 South Oakdale Rm Medford, OR, 97501 (541) 774-6880 Shavon.L.Haynes@water.oregon.gov www.ore,0on.gov/owrd Listed below are the total rates, in cubic feet per second, for water fights on Ashland Creek which have a priority date of 1895 or older. This table shows the breakdown of water rights, based on the flows of Ashland Creek and priority date, between the City of Ashland and the ditch rights involved. Total Flow of Ashland City of Ashland Rights Required Release for Ditch Creek (cfs) (cfs) Rights (cfs) Ditch Names & Priority Date 1 0.804 0.196 Million-1856 (M) 2.427 1.183 L244 (M) & Helman-1858(H) (M),(H), & Smith/Meyer/Roper- 8.515 6.183 2.333 1864(SMR) (M),(H),(SMR) & 17.058 14.033 3.025 Griswold/Delsma n-1886(G D) (M), (H), (S M R), (G D) & 17.368 14.063 3.305 Eliason/Vogel-1895 Feel free to C t me with any questions or concerns. pn' Regards, shuvon 1*1 Iles District 13 Watermaster— Field Services 10 S. Oakdale, Room 309a Medford, Oregon 975011 Phone (w) 541-774-6883 (c) 541-218-5125 Integrity I Service I Technical Excellence I Teamwork I Forward -Looking Appendix ______________emm.me.me---------------------- ......................... m_______________________________.._____-_._._______®___._-_________®_________.._.._____...___.________a_____. 1 * ): C { TECHNICAL MEMORANDUM City of Ashland Water Conservation Program Expansion and Enhancements To: Scott Fleury, City of Ashland From: Tim Henkle, GSI Water Solutions, Inc. Adam Sussman, GSI Water Solutions, Inc. CC: Julie Smitherman, Medford Water Date: May 26, 2023 Introduction As part of developing the City of Ashland's 2023 Water Management and Conservation Plan (WMCP), the City established the Management Advisory Committee (MAC). The MAC is made of up of Ashland citizens with knowledge and experience in water management and provides feedback to City staff on several topics covered in the WMCP. Several MAC members participated on the former Ashland Water Advisory Committee, which provided water conservation and water supply input to the City Council during development of the City's Water Master Plan. For development of the City's 2023 WMCP, the MAC provided suggested ways the City could expand or enhance the City's water management and conservation programs. This technical memorandum describes the process and outcomes ofthe K4AC'adiscussions. Conservation Program Background The Oregon Water Resources Department's administrative rules requiring a WMCP (Oregon Administrative Rules Chapter 000. Division 88) stipulate that a water provider's VVMCP include a water conservation element. For this element, a water provider must describe how the provider meets or intends to meet and implement up to 11 conservation measures. Historically, the City's program has exceeded these minimum requirements by offering an extensive suite of measures, such as providing technical and financial assistance; assistance replacing inefficient fixtures; and educational outreach materials to its residents, businesses, and institutions. The City's current conservation program's breadth and depth reflect the community's conservation ethic and desire to reduce environmental impacts. Thus, the City enjoys the support of the community and, as a result, has been able to establish partnerships with community organizations to help broadcast the conservation message. For example, the Ashland Climate Collaborative has worked in concert with the City to provide conservation outreach and education to City customers at community events and Through this o[genization'swebeite. Partnerships like this are relatively unique among Oregon water providers and have helped contribute to the City's development of one of the most extensive conservation programs in the state. Since 2020, water conservation -related services are being provided through an agreement with Medford Water. Recently, the City's efforts to expand and enhance its program has been slowed due to staffing shortages, though the City expects to have additional support for water conservation efforts within the next 2 years. The City is also hopeful that discussions underway on the topic of establishing a more robust GS|Water So|odona.inc. 1000SWWestern Boulevard, Suite 240.Corvallis, 0R87333 *ww.gskmyzom City of Ashland Water Conservation Program Expansion and Enhancements coordinated regional water conservation effort by Medford Water and the cities of Ashland, Jacksonville, Talent, Phoenix, Central Point and Eagle Point (the Partners) will leverage resources of the Partners for a more cost-effective program. Previous Studies The City has conducted multiple studies since 2010 to help inform and refine its conservation program. These studies include the following: City of Ashland Water Conservation and Reuse Study.' This study identified a long-term water supply strategy to support community health, the local economy, and environmental sustainability. With respect to conservation, the study identified three potential conservation program savings levels that could provide 5 to 15 percent reduction in future demands. The study assumed a 5 percent reduction in its demand forecasts; however, the City intended to achieve a reduction of 15 percent. Among other additional future water "supply" options considered, four "purple pipm" projects were evaluated, but not selected, ranging from the use of limited volumes of reclaimed water at one property to use of all rmc|e|nneU water produced at the wastewater treatment plant /VVVVTP\ at nnu|t|p|8 pr0pert|ms.2 = Water Savings and AnelysiS.»The City used the Demand Side Management Least Cost Planning Decision Support System (DSS) model developed by Maddaus to evaluate the water -savings impacts of over 30 conservation measures. The results helped the City target resources toward measures with greater water savings. Since 2018, the City has implemented many of the most impactful measures in full or in part. Ashland Climate and Energy Action Plan.4 The Climate and Energy Action Plan described opportunities for the City to reduce its carbon emissions and discussed resiliency measures to mitigate the impacts of climate change. Water conservation was recommended as a partial solution to carbon emission reduction and as a means to foster adaptation to future climate change impacts. Specific measures recommended for implementation included an expansion of conservation education and outreach, use of greywater and rainwater collection systems, and implementation of recommendations from the City'afacility water audit Following publication, the City pursued all ofthese measures. MUM The City invited five members ofthe public and arepresentative from the City Council tojoin the MAC and attend aseries ofmeetings related todevelopment ofthe City's2O23VVMCP'The meetings were facilitated by GSI Water Solutions, Inc. (GSI), and an appointed Chair of the MAC. Two of these meetings were devoted to the topic of water conservation. During these two meetings, the City sought input from the MAC on expanding or enhancing the City's existing customer -facing conservation program and on potential municipal water system reclaimed water use opportunities. During its two meetings, the MAC and the City generated a list of conservation measures categorized under the topics of Education and Outreach; Technical and Financial Assistance; Rates, Reuse, and Other Measures. GSI and City staff then identified major benefits and barriers to adoption of the measures and informally evaluated each measure based on three criteria: (1) the availability of resources currently available, (2) potential for water reduction, and (3) level of effort to implement and maintain. The evaluation of resource availability was based on the availability of time, funding, and staffing in consideration of the intergovernmental agreement between the City and Medford Water to use Medford Water staff to implement 1 City of Ashland Water Conservation and Reuse Study. Carollo Engineers. June 2011. 'Reo|oim*dwaterkawaterthothaabo*nusedfo/munioipa|purpuses.treuted,andissuUab|*forr*uee. aWater Savings and Cost-effectiveness Analysis. Maddaus Water Management, Inc. 2018. ^ Ashland Climate and Energy Action Plan. City ofAshland. March 2O17. City of Ashland Water Conservation Program Expansion and Enhancements --------....... ....... --------......... ------' the City's conservation program. If resources were available to devote to a measure, without consideration of the implementation status of all other current and future conservation measures, a value of "yes" was given. Thmma|umapresent*Uunderthenritehon^Po1enUa|forVVaterReduodVn^erobaaedon*utnnatoaofwater conservation measures' savings presented in the water savings and cost-effectiveness analysis conducted by the City in 2018. Because the measures identified by the MAC correlated with at least one measure in the 2018 analysis, the City was able to assign values to the conservation measures. Once these values were assigned, the City aggregated the measures into groupings of expected savings, with each group being assigned arange ofsavings, asfollows: " High. Equivalent tnan expected City-wide savings oft5.410to215.13Ogallons per day (god). = Medium. Equivalent toanexpected City-wide savings of 2,048 to 9.279Mpd savings. ° Low. Equivalent toanexpected City-wide savings of1to1.828 gpUsmvings. Similarly, values of high, medium, and low were given to measures under the "Level of Effort to Implement and Maintain" criterion. The values assigned to this criterion provided estimates of the level of effort required to implement, administer, and maintain the measures based on the experience of GSI and the City. Only measures that the City was not implementing aLthis time were given values. The City and MAC used these three criteria to identify the timing of implementation for each measure using short (0 to 2 years), medium (3 to 5 years), and long (greater than 5 years) terms. A summary of the conservation measures can be found in Exhibit 1. At its second meeting, the MAC also discussed large water projects that use reclaimed water, collectively called reuse projects. These projects are distinct from the customer -facing reuse projects noted in Exhibit I (|.e..grwywatm[applications) inthat they would be impractical for atypical City water customer t0 implement due to the scale, among other differences. MAC's discussions were based on a list of prospective projects provided by the City and associated examples. K4AC's discussions also provided an opportunity to address potential drawbacks and benefits for each of the large-scale reuse projects. One of the purposes of reuse projects is to offset the use of potable water at locations that could otherwise use non -potable water, for example, for irrigation of park ballfields, thereby reserving potable water supplies for future use. Another driver for Ashland to consider reuse projects is the elimination of warm effluent discharges from the City's VV\NTP to cooler Ashland Creak. The results of the reuse projects discussion at the second MAC meeting are found in Exhibit 2. Atota|of3OoustnmerfaCingwaterconservaLonnoeasuroawenaidentKed'asshowninExlibit1. Approximately half of the conservation measures fall under the Education and Outreach category with the remainder failing under Rates, Reuse, or Other Conservation Measures. Of the 30 measures, 5 were identified for implementation within the next years, 10for implementation from 3tu 5 years, and 8for implementation in greater than 5 years. The remainder of measures (7) were currently being implemented or needed additional study prior to implementation and thus were not evaluated. Exhibit 1isorganized based OU the timing of implementation. With respect tothe timing of innp|mnnentoLion, only five measures were identified to be implemented within the short-term (0to 2 years) in keeping with the City's desire to largely maintain the existing program content for approximately 2 years (no program expansion) due to existing resource constraints. These five measures had been previously inop|ennent9d, but temporarily postponed due to u position vacancy atthe City which has since been filled. —............ ---...... .......... --........... ------..................... ....... ...... ----------'.... —.... .... .... City of Ashland Water Conservation Program Expansion and Enhancements The City intends to use the items identified in Exhibit I to guide the development of the City's conservation program and to develop its 2023 WMCP. These measures will be re -visited and further refined prior to implementation based onresources available atthat time. Exhibit 2 includes a list of six types of large-scale reuse projects and at least one example of each that the City could consider for implementation. Exhibit 2also provides asummary Ofthe potential benefits and drawbacks of each project type. Abrief description ofthe project types is provided below, along with ageneral discussion of the benefits and drawbacks of reuse projects. Under state rules, the City's WWTP meets Class A water quality standards for reclaimed water, the highest ranking for recycled water. Class A designated water may be used beneficially in a wide variety ofapplications, inc|uding, but not ||noit*d to, projects that use reclaimed wat*[.s Reclaimed Water toOne orMore Customer(s) Reuse projects vary in size. Communities may use reclaimed water to irrigate onsite landscaping at WWTPs or ainsUo or multiple offsite areas with large, irrigated landscaped ermas, such as golf courses or parks' or have other opportunities to use non -potable water. Reclaimed water also may be used as make-up water for cooling towers at customer sites with significant cooling system demands. Projects even larger in scale include provision of treated wastewater from VVVVTPoto multiple customers for non -potable uses. Ofton, pipes dyed a purple color will be used to distribute non -potable water in order to distinguish these from pipes carrying potable water, These project types are known as"purple pipe" projects. Untreated Well Water Native groundwater not suitable for potable use may be used as a source of supply to offset the use of a water provider's water supply. This option serves a similar purpose as water reuse projects because the use of non - potable water supply can offset use of potable supplies. Stormwater Capture When completed, the City of NeaveMnn'a atonnwater capture project will collect, treat, and store stnrnowater from an area known as South Cooper Mountain, then use this water to meet approximately two-thirds of the irrigation needs of the area. This formerly rural area is being developed to provide amix ofurban uses and will include installation of purple pipe distribution system simultaneous to installation ofinfrastructure for other utilities. Water will be stored inthe C|ty'saquifer storage and recovery system between collection during the rainy season and used during the dry season. Discharge 0fReclaimed Water toAshland Canal The City's Water Conservation and Reuse Study (2011) evaluated an option to divert reclaimed water from Ashland Creek into the Talent Irrigation District canal to reduce the environmental impacts of effluent discharge on the creek. A modification to this project concept was considered as a conservation program measure enhancement. Specifically, the City considered discharging reclaimed water into the Ashland canal (directly or via the Talent Irrigation District canal), thereby providing uninterrupted non -potable supply to properties along this canal for irrigation purposes or for diversion to the City's water treatment plant. Either of these options would serve reduce demand on the City's potable water supply. Discharge ofReclaimed Water toBmigirantLake Under this scenario, reclaimed water would be piped and discharged into Emigrant Lekm, an impoundment resulting from the U.S. Bureau of Reclamation project's Emigrant Lake Dam. The lake is a tributary to Bear Creek. This option could resolve the City's need to reduce the thermal loads on Ashland Creek introduced by sSeeOregonAdministnativ*Ru|*a340(}55-0U12(Rooyu|adVVa1erVua|hyStandanjaandRequirementm) for information about available applications of reclaimed water ...... ................. —...... —...... —.... —... —........... ........ ' GS1 Water SolutionsInc. '4 City of Ashland Water Conservation Program Expansion andEnhancements .............. ........ ....... ...... --------........ ....... ... .... ... .............. ... —... ........ ----....... --------........................... ---......... --- for downstream use. Industrial Reuse Wastewater from the City's industrial customers may be reused by other customers to reduce potable water demands. For example, C8|p1na'sf8oi|Uy in Umatilla, 0regmn, generates a significant volume of cooling water b|owdnvvnfrono its cooling towers. This non -potable blow -down water is used by neighboring property to irrigate cropland. Reuse projects can provide multiple benefits to the environment and municipal water supplies.These projects can offset the use of drinking water sources and allow utilities to preserve supplies for future needs. An additional benefit includes the potential preservation of water quality in water bodies that would otherwise receive VVVVTP effluent. |ndoed, wastewater utilities have ro|imU on reuse projects to meet or help meet water quality parameters such as those required by National Pollution Discharge Elimination System permits. Regulatory requirements to preserve water quality in receiving water bodies are a significant driver ofreuse projects in the state. For example, Ashland evaluated four options for use of reclaimed water among other alternatives during development of its 2011 Water Conservation and Reuse Study to determine if any of these options were feasible to meet the City's regulatory obligation to comply with thermal load limits set for Ashland Creek. (Ultimately, these options were not pursued.) Without this driver, communities may have fewer incentives to implement reuse projects given the costs of these project types. Moreover, the public's lack of acceptance for the use of reclaimed water for non -potable uses may deter reuse projects. For example, the MAC noted that previous attempts to develop reuse projects in Ashland have been met with community objections. Additionally, the use of reclaimed water diverts a source of water from a receiving water body, potentially resulting in harm to downstream uses and users of this source. Each reuse project is unique, with varying levels of benefits and drawbacks. These benefits and drawbacks can change over time, particularly asthe availability ofwater declines inthe region due toclimate change, regulatory requirements become more stringent, and demand for water increases as a result of population increases.sBeoauamofthmymfootons.the[ouSeprV/ed3desoribedheroinnneyvvanantfurtherex8rnination beyond the cursory review performed during the MAC process. The expense associated with further study may be partially funded through the Oregon Water Resources Department's Feasibility Study Grants program for reuse projects. Through this program, funded studies receive agrant of5O percent ofthe project study cost./ Opportunities for Implementation The goal of the MAC was to provide input to City staff on water conservation measures. These measures are summarized inExhibits 1 and 2 and are intended to be the basis for the City during conservation program expansion enhancement ofexisting measures. The City anticipates re -implementing some ofthe measures that the MAC identified due to restoration of staffing resources. Additionally, the City anticipates enhancing and expanding its program within the next 2 years based on additional resources that may become available, allowing for the opportunity to implement additional measures recommended by the MAC. The City's program will also benefit longer term from a regional approach to water conservation programming that is being considered bythe Partners. sOneexampk*ofthistypeof000unenoeiswh*nthoAshbnduona|randryin202Oend2O21du*tolowsupply levels in the source reservoirs. 7 More information about the state's Feasibility Study Grants is available at: -------'---- M 0 Vl Ln > E > E > E E _0 0 _0 0 -0 0 -a> 0 0 E N — m L- C: ai 0 m as a) m (u :L- = m ED D > u 4 Ln Ln u +� 0 0 M 0 -a 0 4-1 0 0 CL 0 U- E 0 E LL E 0 U- m M ca M C) > cu > > (U > 0= (o 0 M 0 M C) m aO 4� C: Ln 0 0 4- 0 +D 0 C: 0 -C 0 4� 0 0 -C +1 0 CO co C . — CO L. 0 N N W N Lr) Ul (U M- 0 0 _0 0- 4� 0 _0 0 CL E 0 0 :3 CL Ln 0 QJ 0 4� O> O E 0 4- CL 4-1 0 tt: m m 4� o 4- 4� CL 0 Q) 0 In tn U (A -Fu u 4- U m co 0 4� 0 V, (1) — u 0 4� D L- 0 41 >- CL =3 V) = M U > m (a) ai 6 u. 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M a) tuw -0 E CL u a, a) I 7a = .2 CU m 0- M to c 0 m 0 L- -0 , E U, u 0 (U m (U C (U Ci 0 -Fz cu m E9 C: u 0 m 0 in u m CL E E C 0 r Qj ai u c M R cu u u -0 :3 CL 0 u 9 Water Rates � 19 Killlfl til � I I A RESOLJiUT1 ft-N-R TO ASHLAND MUNICIPAL CODE SECTION 14.04.030 AND REPEALING RESOLUTION 2018-12. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The "Water Rate Schedule" marked as "Exhibit A" and attached to this Resolution, shall be effective for actual or estimated consumption on or after July 1, 2019. Prorated calculations are permitted for any bills prepared for a partial month or billing period that overlaps the effective date of this Resolution. Miscellaneous Charges and Connection Fees established by previous resolutions remain in effect until revised by separate Council Action. SECTION 2. Copies of this resolution shall be maintained in the Office of the City Recorder. SECTION 3. Classification of the fee. The fees specified in Section I and Section 2 of this resolution are classified as not subject to the limits of Section I lb of Article XI of the Oregon Constitution (Ballot Measure 5). SECTION 4. Resolution 2018-12 is repealed. This resolution was duly PASSED and ADOPTED this 4th day of June, 2019, and the effective date is July 1, 2019, upon signing by the Mayor. 4-345A�o Melissa Huhtala, City Recorder SIGNED and APPROVED this 5th day of June, 2019. Reviewed as to form: DAvid Lohman, City Attorney it Stron&rg, Mayor Page I of I City of Ashland, Oregon CITY OF WATER RATE SCHEDULE ASHLAND All water service provided by the City of Ashland shall be in accordance with Chapter 14.04 of the Ashland Municipal Code. Billing: The minimum monthly charge shall be the sum of the Customer Charge; Meter Charge; plus Quantity Charge, if applicable; and Miscellaneous Charges, if applicable. Billing shall occur monthly with charges due and payable upon receipt. Customer Charge: A single customer charge is applied to each water account regardless of the number of metered water services. I *,, Customer Charge, per account I- July 2018 .1, July 201 1 Per month 1 $ 12.821$ 13.33 Meter Charge: The meter charge applies to all metered water services and does not include any water consumption, Meter Charge, per meter z Jut '2018 Jul Y2019.. 0.75" and Fire Guard meters $ 16.02 $ 15.62 11, meter $ 15.66 $ 16.29 1.5" meter $ 71.65 $ 74.62 211 meter $ 113.86 $ 118.41 3" meter $ 228.32 $ 237.45 4" meter $ 362.11 $ 376.69 G" meter $ 712.61 $ 741.01 81' meter $ 1,129.57 $ 1,174.76 Quantity Charge: All customers will be charged the following rates per cubic foot of water used. Residential -,per dwelling unit P October., May July 2018 July 2019 0-300 cf per cycle $ 0.0269 $ 0.0280 301 to 1,000 cf per cycle $ 0.0335 $ 0.0348 1,001 to 2,600 of per cycle $ 0.0454 $ 0.0472 Over 2,600 cf per cycle $ 0.0686 $ 0.0609 Residential per dwelling unit June.- September. - - 0-300 of per cycle 0.0269 $ 0.0280 301 to 1,000 cf per cycle $ 0.0335 $ 0.0348 1,001 to 2,500 cf per cycle $ 0.0464 $ 0.0472 2,601 to 3,600 of pere cie $ 0.0686 $ 0.016:09 Over 3,600 cf per cytie $ 0.07641 $ 0.0784 Residential Irrigatibri October ,711014y July 2018 July 2019. 0-1000 of per cycle $ 0.0335 $ 0.0348 1,001 -2500 cf per cycle $ 0.0454 0.0472 over 2,600 cf per cycle $ 0.0586 0.0609 Residential Irrigation June.r September- 0 to 1,000 df per cycle $ 0.0335 $ 0.0348 1,001 to 2,500 cf per cycle $ 0.0464 $ 0.0472 2,601 to 3,600 cf per cycle $ 0.0586 $ 0.0609 Over 3,600,cf per cycle $ 0.0764 $ 0.0784 City of Ashland, Oregon CITY OF WATER RATE SCHEDULE ASHLAND 'Conundrejal, less than 2" meter I . - - July-2018, Jut 2019 0-2,500 cf --� per cycle $ 0.0335 $ 0.0348 > 2,600 cf per cycle $ 0.0464 $ 0.0472 Commercial, 2" o0arger meter 0-15,000 cf per cycle $ 0.0336 $ 0.0348 > 16,000 of per cyclel $ 0.04641 $ 0.04721 1ristitutional._(governmental and muhicl at .1 July 2018 ] .Jul '2019 Per cubic foot l $ 0.0321 1 $ 0.0334 1 Corrimercial'and, Institutional Irrigation, idIV2018 -I July 2019 October to May $ 0.0362 1 $ 0.0376 June to Septemberl $ 0.0490 1 $ 0.0510 Miscellaneous Charges: TID Irrigation: Fire Protection Service: TID, ufimeteredsdfvice July 2018; July 2019 Per season, _per acre or portion of acre $ 211.81 $ 241.18 TID*,metered.s6rvlcb Meter Replacement Charge*, by meter size 0.75" meter $ 1.29 $ 1.34 1" meter $ 1.93 $ 2.01 1.5" meter $ 3.05 $ 3.17 2" meter $ 4.11 $ 4.27 3" meter $ 8.80 $ 9.16 4" meter $ 19.12 $ 19.88 6" meter 26.51 1 $ 27.57 8" meter! $ 31.971 $ 33.26 Quantity Chargel $ 0.0024 1 $ 0.00251 *Meter replacement charge is assessed each month, regardless of consumption. Fire Protection Service July2l)18* _July 2019, Customer Cha!Ae, If applicable $ 12. $ 13-3-3 Meter Replacement Charge $ 1.29 $ 1.34 Meter Charge $ 16.02 $ 15.62 Quantity Charge $ 0.0369 $ 0.0384 Unmetered Fire Protection Service, $ 15.02 $ 16.62, Bulk Water; For water provided on a temporary basis through a bulk meter on a fire hydrant, the following charges apply: - 'Bulk Water -Jul2018,,, Jul .2019 Deposit* $ 2,030.38 $ 2,111.60 Basic Fee $ 266.37 $ 266.62 Quantity Charge $ 0.0369 $ 0.0384 *Deposit is refundable less basic fee, quantity charge, and any damage to the city meter, valve, wrench, andlor hydrant. Outside City Limits: All rates and charges for water service provided outside the city limits will be 1.5 times the rates for water service provided within the city limits. Council June 2019 EXHIBIT A W&II&A *Deposit is refundable less basic fee, quantity charge, and any damage to the city meter, valve, wrench, andlor hydrant. Outside City Limits: All rates and charges for water service provided outside the city limits will be 1.5 times the rates for water service provided within the city limits. Council June 2019 EXHIBIT A W&II&A Appendix E --------------------------------- ------------------------------ -------------------------------- I List of Custom er-Focused Conservation Measures I W. HF I c- 0 E L- 0 E U m C: 0 CL Ln (D -1-- E cu '0 - tA -C �to C: > > > W M +-j 4-j WD u a) (Ul Q) -p (1) E Q) • M • • 0 • 4� :3 0 • 0 V� L- 4� 11) "• D 0• • 0, 4� ro • • • • • a O (3) Ln v -C > 0 u to > u C7 0 (1) 0 LA 0 _0 (3) (L) - " ai 0 . > �L--) " U Ln 0 0 0 U to <D � O.0 to u On E a) L 0 -a V) E U u C: tn 0 4� c Ul Ln 0 0 a) o D u :3 0 0 _0 " a) K- 4-1 u 1 C: Ln v 0 U u (L = -0 0 c: &- > 4- 0 > mu -1 c C (1) o CL U > Q) (A 4� to tom to v(3) U) 4- > a) a) U u c: 11 E F-EWM V) — 'G > O " 4-1 DM E3M�—Tv o Ln Ln V) -1 W M 0) > +- M 0 M C U E C: u E 0 L- = (3) L o m o un m u E 0 U L.- 3: Q) >1 E LA v C: C o vtA 0 0 u 4� u -C v (D C: :3 v m E v V) W fun 4- --1 un 0 E m u 0 a U > 0-0 > E 0 § > 0 0 > o C 4- S- C) (3) (3) Lo- (A U %q- t- c >1 uV) >1 4-j 4� >N +' Ul (1) > v +- 4- m 4- U m U 3: F-- (3) F-- u .0 *0 U to m C D .0 Ca u M IA 0 E 0) :3 D u C-3 0 u u"(1) L. u C- u CU m Appendix -F ---------- - ....... - .............. ----------------------------- Curtailment Plan Contact List AppendixF: Curtailment Plan Contact List The following isaworking list ofcontacts for easy reference in the event of imposition of curtailment actions. It will be updated and modified by the Public Information Coordinator as deemed necessary. In addition to communication actions aimed at the general public, the following will be contacted directly as appropriate: City Contacts: m City Administrator * Department Directors Customers: w Wholesale customers • Commercial, industrial and institutional customers m Highest water users m Schools • Domiciliary Health Professionals * Jackson County Health Department • Oregon Dept of Human Services, Drinking Water Program Hospitals Landscape Interests: w Landscape contractors m Landscape architects w Nurseries • Landscape maintenance firms Miscellaneous business interests: w Chamber ofCommerce • Car Washes w Swimming pool contractors • Construction industry: commercial and utility contractors, Home builder's Aaswc,Rental Management firms 0 Projected Climate Change Impacts on Water Demand and Supply for City of Ashland rrojected Climate Change Impacts on Water Demand and Supply for the City of Ashland, Oregon June 2023 Technical memorandum to CIS Water Solutions, Inc. Prepared by The Oregon Climate Change Research Institute Projected Climate Change Impacts on Water Demand and Supply for the City of Ashland, Oregon Technical Memorandum to GIS Water Solutions, Inc. Prepared by David E. Rupp, PhD., Associate Professor Senior Research Oregon Climate Change Research Institute College of Earth, Ocean, and Atmospheric Sciences 104 CEOAS Admin Building Oregon State University Corvallis, OR 97331 June 2023 Recommended citation: Rupp, D. E. (2023). Projected Climate Change Impacts on Water Demand and Supply for the City of Ashland, Oregon, Technical Memorandum to GSI Water Solutions, Inc., Oregon Climate Research Institute, Corvallis, OR. Table of Contents Introduction --------------------------------------------. I Regional Climate Change and Potential Impacts to the Hydrological Cycle .................................. l (2inzo1e Change Impacts onAshland's Water Demand ....... ....................................................... ... 3 Climate Change Impacts ouAshland's Water Supply Availability ...................................... .......... 8 Summary ofWater Demand and Supply Projections .................................................................... |4 Appendix A: Data and methods for water demand projections............. ...................... ................ 15 Appendix G: Data and methods for water supply projections---.—.-------------.]8 References.......................................................................... .............................................. ............. 25 Introduction This technical memorandum provides 1) background information on climate change and its impacts on the City of Ashland and its surroundings, and 2) estimates of the effect of climate change on factors affecting the volume of water used by the City of Ashland's (Ashland) water system (demand) and its primary water supply source: Ashland Creek. Regional climate change and potential impacts to the hydrological cycle Emissions from industrialization will continue to increase the concentrations of greenhouse gases in the atmosphere worldwide, causing Earth's atmosphere, oceans, and lands to warm. This warming will have both direct and indirect effects on the hydrological cycle (lPCC, 2021). Ultimately, the rate of climatic changes will depend on the future rate of greenhouse gas M011=3143110 Because future greenhouse gas emissions are unknown, plausible scenarios of future emissions are typically considered when making projections of future climate. Two scenarios commonly assumed (and the ones we rely on here) are known as Representative Concentration Pathway (RCP) 4.5 and 8.5 (Van Vuuren et al., 2011). RCP 4.5 and RCP 8.5 are often considered moderate and high -end emissions scenarios, respectively. The greenhouse gas concentrations assumed by RCP 8.5 towards the end of the twenty-first century are currently considered unlikely (Hausfather and Peters 2020) but still plausible over the next few decades (Schwalm et al 2020). Potential changes to the future climate and the associated effects on the hydrological cycle have been reported previously for the City of Ashland (Dalton 2016), Jackson County (Dalton et al. 2023), the Rogue River basin (Doppelt et al., 2008) and the State of Oregon (see Fleishman 2023 and the series of Oregon Climate Change Assessments at https:Hblogs.oregonstate.edu/oceri/oregon-climate-assessments). The remainder of this section highlights relevant findings primarily from Dalton (2016) and Dalton et al. (2023). The annual average temperature in Ashland has already increased by about 2.5°F over the last century and the temperature is projected to increase at a faster rate during the next several decades. For example, by the 2050s, the annual average temperature is projected to be 4 and 5°F warmer relative to a 1950 — 2005 baseline, under RCP4.5 and 8.5, respectively. Changes to the magnitude and frequency of hot days may be relevant to water demand so merit attention. For example, by the 2050s, the temperature on the hottest day of the year is projected to increase by 6 and 717, while the frequency of days over I 00'F is projected to increase by 6 and 11 days per year, under RCP 4.5 and 8.5, respectively. Annual average precipitation in Ashland is projected to change very little in response to anthropogenic climate change. Although there is a projected future trend in the region towards more winter precipitation and less summer precipitation, the changes for Ashland and Jackson County are small. In Jackson County for example, the summer low precipitation total that historically had a 20% chance of occurring in any given year (1971 — 2000 baseline), is projected to have a 23% chance of occurring in any year by the 2050s: In other words, such a low summer precipitation total will occur with only slightly higher frequency. Overall, future seasonal precipitation over the next several decades will be dominated by natural variability whereas climate change will play a minor role. Projections of climate -driven changes to municipal water demand in Ashland or other nearby communities have not been made in previous studies of climate impacts. We expect that the impact of climate change on municipal water demand will depend not only on environmental factors but also on human behavior. In this study, we estimate changes to Ashland's water demand under future climate scenarios (see section below). With respect to Ashland's water supply, the most significant changes to the hydrological cycle will be caused by increasing temperature as opposed to changes in precipitation totals. The primary hydrological changes will be driven by the changing snow regime as temperatures rise. The transition to more rainfall and less snowfall will lead to a smaller and earlier peak snowpack and snowmelt's contribution to streamflow will be reduced and occur earlier. As a result, average monthly discharge from the Middle Rogue River basin (USGS HUC 17100308) is projected to increase in winter months (December — November) and decrease in the spring and early summer months (April — July). A diminished snowpack will cause the period of low summer streamflow to begin earlier than it has historically. The earlier onset of the low flow period will lengthen the low -flow season unless fall rains also begin earlier, but there is yet no clear evidence from observations or climate models that the onset of the rainy season will be strongly affected by climate change. The longer low -flow season will increase the frequency of hydrological summer drought as measured by the summer runoff total relative to the historical average summer runoff total. In Jackson County for example, the summer low runoff total that historically had a 20% chance of occurring in any given year is projected to have a 50% chance of occurring in any year by the 2050s. Ashland's water supply may also be affected by higher evaporation and transpiration (i.e., evapotranspiration) rates caused by higher temperatures in source watersheds. Larger losses from evapotranspiration, particularly in summer, may contribute to an increased frequency of summer hydrological drought. However, both increased plant water use efficiency due to higher carbon dioxide (CO2) concentrations and possible changes in vegetation types may offset the higher atmospheric evaporative demand to a substantial amount. Although the total annual precipitation is projected to change little, heavy precipitation events are expected to become more intense because warmer air can hold more water. Higher intensity rainfall can increase turbidity in the water supply therefore increasing the demands on water treatment facilities. Precipitation on the wettest day of the year in Jackson County is projected to increase by 12 and 15% (RCP4.5 and 8.5, respectively) by the 2050s relative to the 1971 — 2000 baseline. Precipitation on the wettest consecutive five days is projected to increase by 9 and 12% (RCP4.5 and 8.5, respectively) by the 2050s. Landslides triggered by rainfall and saturated soil can contribute especially large amounts of sediment to streams. However, the probability of rainfall -driven landslides is not projected to increase significantly, although this projection does not consider other changes that could increase likelihood of landslides, such as increased N occurrence of wildfire that may lead to turbidity events in the Ashland Creek watershed due to greater exposure of soils. Ashland's primary water supply is Reeder Reservoir on Ashland Creek just southwest of Ashland. Ashland also receives water from the Talent Irrigation District (TID) which has stored water rights at Hyatt Reservoir and Howard Prairie Reservoir, about 12 and 15 miles east of Ashland, respectively. To meet demand during periods of low supply from Ashland Creek, Ashland relies on its water right at Lost Creek Lake (approximately 30 miles north of Ashland). Lost Creek Lake also supplies water to the Medford Water Commission (MWC) and other water suppliers. Although we focus on Ashland Creek below, the impacts of climate change across these sources will share common characteristics due to the generally similar climate of the basins that feed these various sources of water. The main impacts to the upper Rogue River (a primary source for Lost Creek Lake) and other rivers and creeks that originate in the mountains will be an increase in flow in winter months, a decrease in flow in the spring and early summer months, and a lengthened low -flow season, where the magnitude of the change at some point in the future will depend on the historical contribution of the snowpack to streamflow in each basin. How these changes ultimately affect available reservoir water throughout the year depends on the reservoirs' volumes and the extent to which they are also managed for competing uses: flood management, hydropower, downstream environmental flow targets, and recreation. Climate Change Impacts on Ashland's Water Demand We estimated the effect of climate change on the monthly volume of water used by Ashland's water system (demand) on the basis of historical relationships between monthly demand and weather variables (see Appendix A for additional detail on data and methods). A key assumption made is that historical relationships will remain the same into the future, that is, demand fluctuates with changes in weather generally. The weather variables used as potential predictors were daily maximum temperature (Tmax), daily minimum temperature (Tmin) and daily precipitation. To compare weather variables to monthly water demand, daily weather was aggregated to monthly metrics by counting the number of days in a month that a variable fell within a bin spanning a range of values. For example, for Tmax, we constructed bins at I O'F intervals and each bin contained the count of the number of days in a month when the temperature fell within that specific bin. Water demand was most sensitive to Tmax therefore we defined sensitivity to temperature as the percentage change in monthly water demand for each day in a month in which Tmax fell within a specified temperature range (Figure 1). For example, for every day in a month that Tmax was between 70°F and 80°F, the monthly water demand was increased by 2.9% over a baseline demand. Baseline demand was calculated as the average historical demand when 60'< Tmax <70°F and therefore days with 60'< Tmax <70°F had no effect on the baseline demand. Sensitivities varied by temperature bin above 70°F, but Tmax <60°F had no effect on water demand. Percentages were additive, so if Tmax was between 70°F and 80°F for 15 days in a month and between 80°F and 90°F for another 15 days, the demand would have been 15 x 2.9% + 15 x 3.4% = 95% above the baseline. N -2 -4 M 25 35 45 55 65 75 85 95 105 Daily maximum temperature (IF) Figure 1. Sensitivity of monthly water demand to daily maximum temperature (Tmax). Shaded areas show 95% confidence intervals on the estimates of sensitivity. Sensitivity is defined as the percentage change in monthly water demand due to a day in a month in which Tmax falls within a specified temperature range. Precipitation, particularly its absence, was found to be a statistically significant but minor factor. We defined sensitivity to precipitation as the percentage change in monthly water demand for each day in a month without measurable precipitation. To be precise, for every day in a month that precipitation was less than 0.01 inches, the monthly water demand was increased by 0.5% over a baseline demand. The sensitivity to days with sizable amounts of rain (i.e., one standard deviation above the mean) was not statistically significant. Based on the empirically derived sensitivities, we projected the change in water demand using simulated Tmax and precipitation under two greenhouse gas emissions scenarios: Representative Concentration Pathway (RCP) 4.5 and 8.5 (see Appendix A). Both scenarios project for Ashland an increase in the number of days with higher temperatures and a corresponding loss of cooler days (Figure 2, upper panel). The number of days with no measurable rain per month is projected to increase slightly in spring and fall implying an expansion of the summer dry season (Figure 2, lower panel). 0 4 3 -0a) 2 E C: 0 E E Q 0 -2 N W11 01" 0.6 E � 0.4 0 E 0.2 cu E 0.0 —0.2 0)70 C -0 —0.4 C) -0.6 Daily maximum temperature — >100°F — 90-100°F — 80-90OF — 70-80OF — <70°F J F M A M J J A S 0 N D Days without precipitation J F M A M J J A S 0 N D Figure 2. Projected change by 2051 — 2060 under the RCP4.5 scenario in (upper panel) the mean number of days per month when the daily maximum temperature (Tmax) fell within specified temperature ranges and (lower panel) the mean number of days per month with no measurable precipitation. Changes are relative to 2011 — 2020. Water demand relative to the period 2010 — 2020 is projected to increase in all months due to the changing climate (Figure 3 and Tables I and 2). The largest percentage increases, although still modest, are in spring and autumn (e.g., demand increases by 7% in May and October by the end of the 2070s under RCP 4.5). Percentage changes during the coldest (December — January) and warmest months (July — August) show a shift over time to greater demands, but the effects are marginal. The generally larger increases in water demand under RCP 8.5 (Table 2) relative to RCP 4.5 (Table 1) are consistent with the greater temperature increases associated with RCP 8.5. 9 M — 2081-2090 — 2071-2080 2061-2070 2051-2060 2041-2050 2031-2040 2021-2030 " 21 V J F M A M J J A S 0 N D Figure 3. Projected change in the mean monthly water demand by decade under the RCP4.5 scenario due to weather effects only. Changes are relative to 2011 — 2020. The largest percentage increases occur in the spring and autumn due to the sharp increase in demand sensitivity to Tmax > 70°F compared to lower temperatures (Figure 1). Because spring and autumn months in particular experience a future increase in days with Tmax > 70°F at the expense of a loss of cooler days (Tmax < 70'F), the change in sensitivity at the 70'F-threshold is most felt during these months. The larger future decrease in days with no measurable precipitation in spring and autumn also leads to a larger increase in demand in these seasons, although the influence of precipitation is much smaller than that of temperature. One can imagine that outdoor activities that use water (e.g., gardening, outdoor sports) may begin earlier in the spring and continue longer into autumn as more days exceed 70°F and there are fewer rainy days. The relatively small percentage increase in demand during the months of July — August may be unexpected, but it results from demand sensitivities to Tmax that do not vary much above the 70'F-threshold (Figure 1). While July and August gain days with Tmax > 90°F, they do mainly at a loss of days with Tmax between 70 — 90°F (Figure 2, upper panel). For example, if a day with Tmax between 80 and 90°F becomes a day with Tmax between 90 and 100°F, the net effect is quite small: a 0.3% increase in monthly water demand. At Tmax > 100°F, the uncertainty on the estimated sensitivity is large (Figure 1) due to small number of days this hot in the observed record and it is possible that the sensitivity to extremely hot days is being underestimated. 0 Table 1. Projected percentage increase in monthly water demand from a baseline demand under the RCP4.5 scenario. The baseline represents an average hypothetical demand during 2011 — 2020. Only the response to climate is considered while all other effects are held constant over time. Percent Change by Decade 2021 — 2031 — 2041 — 2051 — 2061— 2071— 2081 — Month 2030 2040 2050 2060 2070 2080 2090 Jan 0 0 0 0 0 0 0 Feb 0 1 1 2 2 2 2 Mar 0 1 3 4 5 5 5 Apr 1 3 4 5 6 6 6 May 1 3 4 6 7 8 8 Jun 1 1 2 3 4 4 4 Jul 0 0 1 1 1 1 1 Aug 0 1 1 1 1 1 1 Sep 1 2 2 3 4 4 5 Oct 1 2 4 6 7 8 8 Nov 0 1 1 2 3 3 3 Dec 0 0 0 0 0 0 0 Table 2. Projected percentage increase in monthly water demand from a baseline demand under the RCP8.5 scenario. The baseline represents average hypothetical demand during 2011 — 2020. Only the response to climate is considered while all other effects are held constant over time. Percentage Change by Decade 2021— 2031 — 2041 — 2051— 2061— 2071 — 2081 — Month 2030 2040 2050 2060 2070 2080 2090 Jan 0 0 0 0 0 1 1 Feb 0 1 1 2 2 4 5 Mar 0 1 2 4 6 8 10 Apr 1 2 3 6 7 10 12 May 1 3 5 8 10 13 15 Jun 1 2 3 4 5 6 7 Jul 0 0 1 1 1 0 0 Aug 0 1 1 1 1 1 0 Sep 1 2 4 5 6 7 8 Oct 1 3 5 9 12 14 16 Nov 1 1 2 4 5 6 8 Dec 0 0 0 0 0 0 0 7 Climate Change Impacts on Ashland's Water Supply Availability We estimated the effect of climate change on Ashland's water supply to Reeder Reservoir using hydrological models to simulate basin discharge at gaged locations on East and West Ashland Creeks. Though a few ungaged creeks feed Reeder reservoir, East and West Ashland Creek together contribute by far most of the flow to the reservoir so excluding these smaller creeks should have little effect on our results. The hydrological models were driven by precipitation and temperature inputs that were derived using output from global climate models (GCMs) run under the same two scenarios of greenhouse gas emissions used for water demand projections (RCP 4.5 and 8.5). The hydrological models did not consider evaporation losses from Reeder reservoir, but an increase in evaporative loss from the reservoir would be expected in a future warmer climate. Appendix B provides a more detailed description of the data and methods. Briefly, we derived projections of future percentage changes in mean daily and monthly discharge from a baseline period (1991 — 2020). Projections were calculated using three datasets: the Columbia River Climate Change dataset using the Variable Infiltration Capacity hydrological model (CRCC- VIC), the same Columbia River Climate Change dataset but using the Precipitation -Runoff Modeling System (CRCC-PRMS), and the LOCA CMIP5 Hydrology dataset using the VIC model (LOCA-Hydro5). The projected changes in discharge from East and West Ashland Creek follow the pattern typical of basins in the region with important snowmelt contributions: future increases in winter discharge and future decreases in spring and summer discharge (Figure 4). A key difference among the datasets is the timing of the maximum projected percentage decrease in discharge. Although this maximum decrease shifts earlier in the spring over time as the climate warms, it mainly occurs in June in CRCC-VIC (Tables 3 and 4), in May in CRCC-PRMS (Tables 5 and 6), and in July in LOCA-Hydro5 (Tables 7 and 8). These differences in the timing of the projected maximum percentage decrease can be associated with when the datasets simulate historical average peak discharge during the year: CRCC-PRMS simulates the earliest peak discharge (early May), LOCA-Hydro5 the latest (late June), and CRCC-VIC falls in between (late May). Of the three datasets, the CRCC-VIC mean annual hydrograph most closely resembles the observations in its general shape and in the timing of peal-, discharge (See Appendix B.3), which may support favoring the CRCC-VIC projections over the others. Previous hydrological modeling of Ashland Creek using the Distributed Hydrologic Surface Vegetation Model (DHSVM; see Appendix B for details) shows a projected maximum percentage decrease in discharge occurring in July, most like LOCA-Hydro5. Moreover, the projected changes in discharge from DHSVM most closely resemble those from LOCA-Hydro5 over the entire year (Figure 5). DHSVM notably differs from the other datasets in that it projects substantial declines in September and October discharge, whereas the other datasets project only relatively small changes. Given the general inferior performance of CRCC-PRMS with respect to the historical record, we felt justified in eliminating that dataset from further analysis of water supply availability. LOCA- Hydro5 has an average peak discharge that occurs too late in the year, yet its projected changes most closely match those from DHSVM, which does not have such a bias (data not shown). Without additional information with which to decide on whether to exclude a dataset, this analysis considers the projections from both CRCC-VIC and LOCA-Hydro5. a) 125 100 75 50 25 0 -25 -50 -75 -100 C) 125 100 75 .U) 50 25 Zi 0 -25 E -5o -75 100 e) 125 100 75 50 25 0 -25 -50 -75 -100 RCP4.5 b) RCP8.5 125 100 75 50 25 0 -25 -50 -75 -100 CRCC-VIC J F M A M J J A S 0 N D d) J F M A M J J A S 0 N D 125 100 75 50 25 0 -25 -50 -75 -100 J F M A M J J A S 0 N D f) LOCA-Hydro5-VIC 125 100 75 50 25 0 ✓ -25 -50 -75 -100 CRCC-PRMS J F M A M J J A 8 0 N U LOCA-Hydro5-VIC J F M A M J J A S 0 N D J F M A M J J A S 0 N D Month Figure 4. Projected percentage change from baseline (1991 — 2020) in combined East and West Fork Ashland Creek basin daily discharge under the RCP 4.5 (left column) and 8.5 (right column) scenarios as simulated by CRCC-VIC, CRCC-PRA4S, and LOCA-Hydro5. 100 75 50 25 0 -25 -50 -75 -100 7 > — --A v CRCC-VIC CRCC-PRMS LOCA-Hydro5 t—L—DHSVM J F M A M J J A S 0 N D Month Figure 5. Projected percentage change from the 1980s to the 2040s in combined East and West Fork Ashland Creek basin daily discharge from CRCC-VIC, CRCC-PRMS, and LOCA-Hydro5 under RCP 4.5 scenario and from DHSVM under the A I B scenario (see Appendix B. 1). IM Table 3. Projected percentage change from baseline in the combined East and West Fork Ashland Creek basin discharge under the RCP4.5 scenario from CRCC-VIC. The baseline represents the average discharge during 1991 — 2020. Percentage Change by Decade 2021 — 2031— 2041 — 2051 — 2061 — 2071 — Month 2030 2040 2050 2060 2070 2080 Jan 20 31 46 59 64 62 Feb 24 32 38 47 56 67 Mar 13 18 25 33 39 45 Apr 7 5 6 7 6 2 May -4 -11 -18 -28 -36 -38 Jun -23 -32 -40 -53 -61 -64 Jul -24 -32 -39 -44 -47 -47 Aug -6 -6 -5 -5 -6 -8 Sep 1 1 -4 -6 -3 -3 Oct 1 4 7 1 1 -3 Nov 10 9 11 5 10 14 Dec 14 9 20 26 37 32 Table 4. Projected percentage change from baseline in the combined East and West Fork Ashland Creek basin discharge under the RCP8.5 scenario from CRCC-VIC. The baseline represents the average discharge during 1991 — 2020. Percentage Change by Decade 2021— 2031— 2041— 2051— 2061 — 2071 — Month 2030 2040 2050 2060 2070 2080 Jan 30 40 50 63 95 111 Feb 21 35 55 73 96 101 Mar 14 22 36 41 50 48 Apr 8 10 9 3 -3 -16 May -9 -18 -30 -43 -53 -62 Jun -28 -45 -55 -68 -73 -78 Jul -24 -39 -43 -52 -51 -54 Aug -6 -8 -10 -11 -10 -10 Sep 5 -1 -3 -11 -8 -10 Oct 7 7 -6 -8 -17 -9 Nov 16 21 28 28 33 38 Dec 31 42 58 62 81 95 11 Table 5. Projected percentage change from baseline in the combined East and West Fork Ashland Creek basin discharge under the RCP4.5 scenario from CRCC-PRMS. The baseline represents the average discharge during 1991 — 2020. Percentage Change by Decade 2021 — 2031 — 2041 — 2051 — 2061 — 2071 — Month 2030 2040 2050 2060 2070 2080 Jan 21 36 52 65 65 65 Feb 22 28 32 40 46 57 Mar 9 9 9 9 7 9 Apr -8 -17 -23 -31 -36 -40 May -22 -32 -40 -50 -57 -59 Jun -22 -29 -33 -43 -47 -51 Jul -1 -3 -8 -12 -9 -7 Aug 0 0 7 8 6 0 Sep 4 4 -4 -6 2 1 Oct 0 5 10 2 4 1 Nov 10 9 11 3 8 11 Dec 15 12 22 30 40 36 Table 6. Projected percentage change from baseline in the combined East and West Fork Ashland Creek basin discharge under the RCP8.5 scenario from CRCC-PRMS. The baseline represents the average discharge during 1991 — 2020. Percentage Change by Decade 2021— 2031— 2041— 2051 — 2061 — 2071— Month 2030 2040 2050 2060 2070 2080 Jan 31 40 49 60 90 100 Feb 19 30 46 55 69 66 Mar 6 9 12 9 7 -2 Apr -12 -22 -33 -42 -50 -58 May -27 -40 -50 -61 -67 -71 Jun -21 -34 -41 -49 -52 -54 Jul -7 -6 -5 -11 0 -3 Aug -3 1 -2 1 3 4 Sep 12 2 0 -13 -9 -10 Oct 11 11 -5 -7 -20 -7 Nov 16 20 28 29 33 36 Dec 28 38 50 54 70 80 12 Table 7. Projected percentage change from baseline in the combined East and West Fork Ashland Creek basin discharge under the RCP4.5 scenario from LOCA-Hydros. The baseline represents the average discharge during 1991 — 2020. Percentage Change by Decade 2021— 2031 — 2041 — 2051 — 2061 — 2071 — Month 2030 2040 2050 2060 2070 2080 Jan 9 14 24 33 33 34 Feb 9 13 17 25 29 36 Mar 9 12 17 22 24 25 Apr 4 5 6 8 9 10 May 1 -1 -2 -3 -5 -4 Jun -5 -9 -15 -20 -25 -27 Jul -21 -31 -39 -46 -50 -52 Aug -11 -15 -18 -20 -22 -23 Sep -7 -7 -8 -8 -11 -12 Oct -5 -6 -4 -5 -5 -7 Nov 10 11 9 9 13 18 Dee 10 9 17 22 29 26 Table 8. Projected percentage change from baseline in the combined East and West Fork Ashland Creek basin discharge under the RCP8.5 scenario from LOCA-Hydros. The baseline represents the average discharge during 1991 — 2020. Percentage Change by Decade 2021 — 2031— 2041— 2051— 2061 — 2071— Month 2030 2040 2050 2060 2070 2080 Jan 18 27 36 49 67 91 Feb 11 22 33 42 51 61 Mar 12 17 21 25 34 43 Apr 5 9 9 8 10 12 May 2 2 1 -5 -8 -14 Jun -6 -10 -18 -30 -40 -49 Jul -25 -36 -46 -55 -61 -66 Aug -10 -15 -19 -24 -28 -31 Sep -5 -8 -12 -16 -15 -16 Oct -2 -4 -6 -9 -11 -11 Nov 8 15 19 20 22 27 Dec 12 23 29 38 47 60 13 We estimated the effect of future climate change on monthly water demand for the City of Ashland and on the water supply from Ashland Creek. Projected changes in demand and supply 4=1 were made for each future decade out to the year 2090 assuming two scenarios, one moderate (RCP 4.5) and one high -end (RCP 8.5), of future greenhouse gas emissions. Considering only climate change as the factor, future monthly water demand is projected to increase as the temperature increases, and to a much smaller extent, as the number of dry days per month decreases slightly over much of the year. Future demand, as a percentage of historical demand, is projected to increase most in the spring and fall months. For example, in April, May, and October, demand increases by 4% above 2011 — 2020 levels by 2041 — 2050 under RCP 4.5. In mid -summer, when demand is historically high, future demand is only projected to increase by —1%. The lack of any substantial change in summer arises from the relationship between Ashland's historical water demand and local temperature data, which showed only small differences in the sensitivity of demand once the temperature increased above 80°F. In other words, the amount of water used when the temperature reached 85°F was similar to when the temperature reached 95°F, all else being equal. Projected changes in monthly water supply from Ashland Creek are largely driven by the decreasing contribution of snowmelt to streamflow as temperatures rise in the future. The reduction in the snowpack leads to large percentage decreases in future late spring/early summer flow when historically the snowpack was melting at its fastest rate. For example, mean June discharge from Ashland Creek is projected decrease by about 40% by 2041 — 2050 under RCP 4.5. The future decrease in flow extends through the summer, with mean August discharge decreasing by 5 — 18% and mean September discharge decreasing by 4 — 8% for the same time horizon and emissions scenario. In contrast, winter months are projected to have an increase in discharge due to more rainfall at the expense of less snowfall, but also due to a small increase in winter precipitation overall. The largest changes occur in January, with increases of 17 — 46% by 2041 — 2050 under RCP 4.5, for example. Although large changes are projected during some months, the total annual discharge is projected to be affected little by climate change. im] A 1. Data Daily water demand from the City of Ashland (Ashland) water treatment plant (WTP) was acquired for the years 2005 through 2022. Daily water diverted from the Talent, Ashland, Phoenix Intertie project (TAP) were acquired for the years 2015 — 2022. The first use of TAP water by Ashland was on 29 June 2015. WTP and TAP values were summed to get the total daily water demand for Ashland. Observed daily precipitation, daily minimum temperature (Tmin), and daily maximum temperature (Tniax) for an area representing the City of Ashland were acquired from the PRISM Climate Group at ht!ps://www.prism.oregonstate.edu. The PRISM data are gridded with a resolution of 1/24 degree (-4 km cell width or an area of roughly 6 square miles). Specifically, we used data at the grid cell centered on (42.2069N, - 122.7126W) for the years 2005 through 2022. Simulations of daily weather variables under multiple climate change scenarios and spanning the years 1950-2099 were acquired from the Climatology Lab at the University of California, Merced at http://www.climatologylab,org/maca.htnil. Daily precipitation, Tmin, and Tniax were derived from global climate model (GCM) output that was statistically downscaled to 1/24- degree resolution over the contiguous United States. The downscaling was done using the Multivariate Adaptive Constructed Analogs Method (MACA; Abatzoglou and Brown, 2012). Like the PRISM data, the MACA data are gridded with a resolution of 1/24 degree. We used the data from MACA and PRISM at the same geographic location. The MACA dataset (specifically the version called "MACAv2-METDATA") includes downscaled output from 20 GCMs (see Table Al) that were used in the Coupled -Model Intercomparison Project Phase 5 (CMIP5; Taylor et al., 2012) that provided the climate projections for the International Panel on Climate Change (IPCC) Assessment Report 5 (AR5; IPCC, 2013). This dataset includes climate projections using RCP 4.5 and 8.5. Zn A.2. Methods We estimated the sensitivity of monthly water demand to weather using observed records of water demand and weather variables. We then applied these sensitivities to projections of future changes in weather variables to estimate changes in water demand due to climate change. Sensitivities of water demand to weather variables were estimated using ordinary least squares regression. Monthly water demand was modeled as a function of weather and other factors that allowed for a non -linear response of water demand to weather. Daily weather was aggregated to monthly by summing the number of days in a month that a variable fell within a bin spanning a range of values. For Tmin and Tmax, we constructed bins in 10' F intervals and each bin contained the count of the number of days per month when the temperature fell within that 15 specific bin. For precipitation, we summed the number of days with no measurable precipitation and the number of days with precipitation > one standard deviation above the mean. Intuitively, the model coefficients on the bins allowed us to identify how an additional hot, cold, dry, or wet day affects water demand. The statistical model also included the effects of holidays and weekends, and quarterly differences (i.e., January — March, April — June, July — September, and October — December). The year was also treated as a factor so that time -varying demand resulting from changes in water use efficiency or population could be accounted for implicitly. We applied the sensitivities to observed weather obtained from the model coefficients to the simulated weather from the MACA dataset. The results were monthly time series of simulated water demand from 1950 — 2099 corresponding to each of 20 GCMs and two RCPs (i.e., 40 time series). To both help cancel potential errors among the GCMs and smooth out climate variability not driven by increasing greenhouse gas concentration, we averaged the time series of water demand across the 20 GCMs for each RCP. Climatological monthly water demand was calculated by averaging water demand for the calendar month over 30-year increments for each decade beginning in the 2010s and ending in the 2070s. For example, the water demand representative of August during the 2010s (i.e., 2011 — 2020) was taken as the average August water demand over the years 2001 — 2030. Percentage changes for each decade into the future were calculated relative to the 2010s' baseline. Table Al. Global climate models' included in the MACA, CRCC, and LOCA-Hydros datasets MACA CRCC LOCA-Hydro5 Global climate model weather hydrology hydrology ACCESS 1-0 X ACCESS2-0 X BCC-CSMI-I X X BCC-CSMI-IM X X BNU-ESM X CanESM2 X X X CCSM4 X X X CESM1-BGC X CESM1-CAM5 X CMCC-CM X CMCC-CMS X CNRM-CM5 X X X CSIRO-MK3-6-0 X X X EC -EARTH X FGOALS-G2 X GFDL-CM3 X GFDL-ESM2G X X GFDL-ESM2M X X X GISS-E2-H X GISS-E2-R X HadGEM2-AO X HadGEM2-CC X X X HadGEM2-ES X X X INMCM4 X X X IPSL-CM4A-LR X X IPSL-CM4A-MR X X X IPSL-CM5B-LR X MIR005 X X X MIROC-ESM X X MIROC-ESM-CHEM X X MPI-ESM-LR X MPI-ESM-MR X MRI-CGCM3 X X NorESM 1-M X X 'The CMIP5 ensemble member rlilpI was used from each GCM, except for CCSM for which r6ilpI was used. 17 B, 1. Data Daily average streamflow for East Fork Ashland Creek at USGS gauge 14353500 and West Fork Ashland Creek at USGS gage 14353000 were acquired from the USGS at 1-ittps://Nvaterdata.us,-s.gov/nwis/sw. Simulations of daily basin discharge under multiple climate change scenarios for the East and West Fork Ashland Creek basins were acquired from two sets of data. The first set is a product of the Columbia River Climate Change (CRCC) project funded by the Bonneville Power Administration, USACE, and Bureau of Reclamation (RMJOC, 2018). The CRCC simulations cover much of northwestern United States, span the years 1950 - 2099, and were generated using 40 distinct modeling configurations and therefore consist of 40 scenarios of basin discharge. The 40 configurations are the product of two hydrological models driven with inputs derived from ten CMIP5 GCMs under two RCPs. The ten GCMs were chosen based on relatively good performance with regards to observed historical climate (Rupp et al., 2013; RMJOC, 2018) and availability of the MACA-downscaled data (See Table Al). The GCM daily precipitation and daily minimum and maximum temperature data were statistically downscaled to 1/16-degree resolution using the MACA method. Note that while the general downscaling procedure is the same as discussed in Appendix A. I above, the downscaled data here differ in resolution and in the observational dataset used to the train the statistical downscaling (see https://www.climatologylab.org/maca.html). Specifically, the version of MACA data used are called "MACAQ-Livneh"). The two hydrological models consist of the Variable Infiltration Capacity Model (VIC version 4.2.glacier.01; Liang et al., 1994) and a gridded implementation of the Precipitation -Runoff Modeling System (PRMS; Leavesley et al., 1983), both at 1/16 degree (-6 kin), See Chegwidden et al. (2019) for an overview of the CRCC simulations. The second set of basin discharge data comes from the LOCA CMIP5 Hydrology (LOCA- Hydro5) that is part of the "Downscaled CMIP3 and CMIP5 Climate and Hydrology Projections" archive at https://,f,,do-dep.ucllnl.org/downscaled_qm . tp-projections. The LOCA- Hydro5 simulations cover the conterminous United States, span the years 1950 - 2099 and were generated using precipitation and daily minimum and maximum temperature data from 32 CMIP5 GCMs (See Table A. 1) under two RCPs (4.5 and 8.5). The GCM data were statistically downscaled to 1/ 16 degree using the Locally Constructed Analogs (LOCA) method (Pierce et al. 2014; 2015). Hydrology was simulated at 1/1 6-degree resolution using VIC version 4.2.c (Vano et al. 2020). For both the CRCC and LOCA-Hydro5 datasets, 1/1 6-degree gridded model output was mapped onto polygons representing the East and West Fork Ashland Creek basins. Basin discharge was calculated as an area -weighted sum of the grid cell discharge, where the weights were proportional to the area of the basin that overlapped each grid cell. Lastly, summarized projections of future strearnflow in the East and West Fork Ashland Creek were acquired from tables in the document titled "Effects of Climate Change in Ashland Creek, Oregon" dated July, 2010, and accessed at https://www.ashland.or.us/F1les/2010-07- -13 %20Ashland%2OCreek%2 OClimate%2 0 Change. odf. This document describes how the Distributed Hydrologic Surface Vegetation Model (DHSVM) version v.2.4 (Wigmosta et al. 1994) was applied to simulate the hydrology of East and West Fork Ashland Creek basins using statistically downscaled meteorological data from ten CMIP3 GCMs under the greenhouse gas emissions scenario AIB. AIB falls between the RCP 4.5 and RCP 8.5 scenarios in terms of greenhouse gas concentration. Although the document does not state the spatial resolution of the model, figures in the document suggest that DHSVM was run at a much finer resolution than the VIC and PRMS models. B.2. Methods Daily time series of basin discharge were summarized identically for the CRCC and LOCA- Hydro5 datasets. Firstly, to help cancel potential errors among the GCMs, we averaged the time series of daily basin discharge across all GCMs for each hydrological model and each RCP. Secondly, climatological daily basin discharge was calculated by averaging discharge for each day of the calendar year over 30-year increments for each decade beginning in the 2010s and ending in the 2070s. For example, the water demand representative of July 21 during the 2010s (i.e., 2011 — 2020) was taken as the July 21 discharge averaged over the years 1991 — 2020. Thirdly, to further help smooth out 'internal' climate variability not driven by increasing greenhouse gas concentrations, we smoothed the daily climatological discharge for each decade with a 3 1 -day moving average. Lastly, percentage changes in discharge for each decade were calculated relative to the 2010s' baseline. B. 3. Coniparison of simulated and observed basin discharge We compared the simulated and observed basin discharge climatology to help determine a qualitative level of confidence to the projected changes in future discharge from the different data source. Simulated discharge from the CRCC-VIC, CRCC-PRMS, and LOCA-Hydro5 was much higher than observed discharge over most of the year (Figures B I — 133; Table B 1). CRCC-PRMS overestimated discharge the most and LOCA-Hydro5 the least. There are several possible reasons for the overestimation of discharge. The reasons include overestimation of precipitation, underestimation of losses from evapotranspiration (ET), and/or underestimation of groundwater that flows out of the basin and resurfaces at a point downstream from the point of measurement. A comparison across simulations of precipitation inputs point to overestimation of precipitation as the primary reason (Table B 1): Average annual precipitation in the CRCC and LOCA-Hydro5 simulations was 86% and 46%, respectively than in the DHSVM simulations (Table B 1). A secondary reason may be the underestimation of ET losses with some of the hydrological models. The runoff ratio (mean annual discharge divided by mean annual precipitation) is a relative measure of ET (high runoff ratio implies low ET). The runoff ratio was highest for CRCC-PRMS (0.72) and lowest for LOCA-Hydro5 (0.49), whereas the runoff ratio for DHSVM was 0.55 (Table B I). W True precipitation and evapotranspiration for the East and West Ashland Creek basins are not known, but it is reasonable to assume that the values of these water fluxes from DHSVM are more likely to be closest to actual values given DHSVM was calibrated to five years of streamflow records from the two creeks and that DHSVM most accurately represents the topographic variability of the basins. The relatively coarse -resolution hydrological models in CRCC and LOCA-Hydro5 would not have been calibrated using observed strearnflow at East or West Fork Ashland Creek gages but would have used gages that were farther downstream and measured discharge from an area much larger than either basin. Using DHSVM as the reference, therefore, we would assume that precipitation from both CRCC and LOCA-Hydro5 was much too high and that CRCC-PRMS substantially underestimated ET losses. Despite the large biases in precipitation in CRCC and LOCA-Hydro5, relative (though not absolute) impacts of climate change might still be simulated well if the hydrological model is accurately simulating what the hydrological fluxes in the basin would be under the higher precipitation. For example, CRCC-VIC generally reproduced the relative shape of the observed annual hydrograph (Figure B 1). Importantly, the timing of the simulated peak discharge in late May to early June was consistent with observations. This peak represents the onset of rapid snow melting as the temperature increases following the snow accumulation period. CRCC-PRMS produced peak discharge three to four weeks too early in the spring (Figure B2) whereas LOCA- Hydro5 produced peak discharge a month or more too late (Figure B3). RE a) 80 70 60 50 (D 40 30 U) 20 10 0 b) 80 70 60 50 (D 40 C- 30 20 10 0 West Fork Ashland Cr., CRCC, RCP4.5 Vic 1991-2020 obs, 1991-2020 sim. 2001-2030 sim. 2011-2040 sim. 2021-2050 sim. 2031-2060 sim. 2041-2070 sim. 2051-2080 sim. 2061-2090 sim. J F M A M J J A S 0 N D Month PRMS 1991-2020 obs. 1991-2020 sim. 2001-2030 sim, 2011-2040 sim. 2021-2050 sim. 2031-2060 sim, 2041-2070 sim. 2051-2080 sim. 2061-2090 sim. J F M A M J J A S 0 N D Month Figure B1. Simulated (sim.) and observed (obs.) 30-year average daily discharge from the West Fork Ashland Creek basin. Simulated discharge is from the CRCC dataset using the a) VIC and b) PRMS hydrological models with the RCP4.5 scenario. w a) 80 70 60 50 (D 2) L- 40 M 30 D 20 10 0 b) 80 70 60 0 1-1 50 a) 40 30 20 10 0 East Fork Ashland Cr., CRCC, RCP4.5 Vic 1991-2020 obs. 1991-2020 sim. 2001-2030 sim. 2011-2040 sim. 2021-2050 sim. 2031-2060 sim. 2041-2070 sim. 2051-2080 sim. 2061-2090 sim. J F M A M J J A S 0 N D Month PRMS 1991-2020 obs. 1991-2020 sim. 2001-2030 sim, 2011-2040 sim. 2021-2050 sim. 2031-2060 sim. 2041-2070 sim. 2051-2080 sim. 2061-2090 sim. J F M A M J J A S 0 N D Month Figure B2. Simulated (sim.) and observed (obs.) 30-year average daily discharge from the East Fork Ashland Creek basin. Simulated discharge is from the CRCC dataset using the a) VIC and b) PRXIS hydrological models with the RCP4.5 scenario. W a) 45 40 35 30 (D 25 20 15 10 5 0 b) 45 40 35 4 5 ' 30 0 25 ) 20 15 10 5 0 LOCA-Hydro5, VIC, RCP4.5 West Fork Ashland Cr. 1991-2020 obs. 1991-2020 sim. 2001-2030 sim. 2011-2040 sim. 2021-2050 sim. 2031-2060 sim. 2041-2070 sim. 2051-2080 sim, 2061-2090 sim, J F M A M J J A S 0 N D Month East Fork Ashland Cr. J F M A M J J A S 0 N D Month Figure B3. Simulated (sim.) and observed (obs.) 30-year average daily discharge from the a) West Fork and b) East Fork Ashland Creek basins. Simulated discharge is from the LOCA- Hydro5 dataset with the RCP4.5 scenario. LOCA-Hydro5 uses the VIC hydrological model only. Z:) 23 Table III. Average annual precipitation, runoff, and runoff ratio for the East and West Fork Ashland Creek basins during 1991 — 2020 from CRCC-VIC, CRCC-VIC, and LOCA-Hydros and for the combined East and West Fork Ashland Creek basins during 1970 — 1999 from DHSVM. Basin Dataset Average annual Average annual Runoff ratio precipitation (min) runoff (mm) CRCC-VIC 1337 834 0.62 East Fork CRCC-PRMS 1337 947 0.71 Ashland Creek LOCA-Hydro5 1052 517 0.49 Measured 349 CRCC-VIC 1314 804 0.61 West Fork CRCC-PRMS 1314 931 0.71 Ashland Creek LOCA-Hydro5 1034 498 0.48 Measured 318 Combined East and West Fork DHSVM 717 395 0.55 IT�,�iTi �i'rilm We thank Steven Dundas, Oregon State University, for assistance with the statistical analysis of the water demand data. We also thank Matt Rogers and Bart Nijssen, University of Washington, for providing the CRCC runoff data. 24 References Abatzoglou, J. T., & Brown, T. J. (2012). A comparison of statistical downscaling methods suited for wildfire applications. International Journal of Climatology, 32(5), 772-780. Abatzoglou, J. T., Rupp, D. E., & Mote, P. W. (2014). Seasonal climate variability and change in the Pacific Northwest of the United States. Journal of Climate, 27(5), 2125-2142. Chegwidden, O. S., Nijssen, B., Rupp, D. E., Arnold, J. R., Clark, M. P., Hamman, J. J.'... & Pan, M. (2019). How do modeling decisions affect the spread among hydrologic climate change projections? Exploring a large ensemble of simulations across a diversity of hydroclimates. Earth's Future, 7(6), 623-637. Dalton, M. (2016). Climate Trends and Projections: City of Ashland, Oregon. Final report to the City of Ashland, Oregon, by the Oregon Climate Change Research Institute, Oregon State University, Corvallis, Oregon, 37 p. Dalton, M., Fleishman, E., & Bachelet, D. (2023). Future Climate Projections: Jackson County, Oregon. Oregon Climate Change Research Institute, Oregon State University, Corvallis, Oregon, 70 p. Doppelt, B, Hamilton, R., Williams, C. D., & Koopman, M. (2008). Preparing for Climate Change in the Rogue River Basin of Southwest Oregon. Institute for Sustainable Environment, University of Oregon, Eugene. Oregon, Fleishman, E., editor (2023). Sixth Oregon Climate Assessment. Oregon Climate Change Research Institute, Oregon State University, Corvallis, Oregon. doi: 10.5399/osu/1161. Hausfather, Z., & Peters, G. P. (2020). Emissions — the `business as usual' story is misleading. Nature, 577, 618-620. IPCC (2013). Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Stocker, T.F., et al. (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, 1535 pp. IPCC (2021). Summary for Policymakers. In: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Masson-Delmotte, V., et al. (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, pp. 3-32. Leavesley, G. H., Lichty, R. W., Troutman, B. M., & Saindon, L. G. (1983). Precipitation -runoff modeling system - User's manual, U.S. Geological Survey Water -Resources Investigations Report, 83(4238), 207. Pierce, D. W., Cayan, D. R., & Thrasher, B. L. (2014). Statistical downscaling using Localized Constructed Analogs (LOCA). Journal of Hydrometeorology, 1.5(6), 2558-2585. Pierce, D. W., Cayan, D. R., Maurer, E. P., Abatzoglou, J. T., & Hegewisch, K. C. (2015). Improved bias correction techniques for hydrological simulations of climate change. Journal of Hydrometeorology, 16, 2421-2442. In River Management Joint Operating Committee (R_MJOC) (2018). Climate and Hydrology Datasets for RMJOC Long -Term Planning Studies, Second Edition: Part I — Hydroclimate Projections and Analyses. Retrieved from https://usace.contentdm.ocle.org/digital/collection/P266001colll/id/10562 Rupp, D. E., Abatzoglou, J. T., Hegewisch, K. C., & Mote, P. W. (2013). Evaluation of CMIP5 20th century climate simulations for the Pacific Northwest USA. Journal of Geophysical Research: Atmospheres, 118(19), 10884-10906. Schwalm, C. R., Glendon, S., & Duffy, P. B. (2020). RCP8.5 tracks cumulative CO2 emissions. Proceedings of the National Academy of Sciences, 117(33), 19656-19657. Taylor, K. E., Stouffer, R. J., & Meehl, G. A. (2012). An overview of CMIP5 and the experiment design. Bulletin of the American Meteorological Society, 93(4), 485-498. Van Vuuren, D. P., Edmonds, J., Kainuma, M., Riahi, K., Thomson, A., Hibbard, K., & Masul, T. (2011). The representative concentration pathways: an overview. Climatic Change, 109(1- 2),5. Vano, J., Harriman, J., Gutmann, E., Wood, A., Mizukami, A. N., Clark, M., ... & Arnold, J. (2020). Comparing Downscaled LOCA and BCSD CMIP5 Climate and Hydrology Projections - Release of Downscaled LOCA CMIP5 Hydrology, 96 p. Wigmosta, M. S., Vail, L. W., & Letteranaier, D. P. (1994). A distributed hydrology -vegetation model for complex terrain. Water Resources Research, 30(6), 1665-1679. W. � ��,�� Agenda Item Water & Enterprise System Utility Rates and Affordability From Scott Fleury PE Public Works Director Contact Scott.fleury@ashland.or.us Item Type Requested by Council El Update El Request for Direction X Presentation El SUMMARY Before Council is on uodoLo on water rate forecasting for the current biennium with the six year look ahead. The water rate analysis was performed by Hansford Economic Consulting using the current budget and capital planning documents. The update accounts for the projected debt required to oonst/uttthenevvVVoterTnaotrnanLMontuoingLheEnvironrnento|Proteution4genoy/EP4lVVoter Innovation and infrastructure Financing Act /VV|F|A\funding mechanism. This update also includes background and previous information discussed by Council regarding utility rate affordability and applying o metric tothe overall cost of utilities for community members in order to make holistic decisions about rate increases for the enterprise funds that are within the Council's purview. POLICIES, PLANS & GOALS SUPPORTED VISION STATEMENTS for Success: 4 Ashland is a resilient, sustainable community that maintains the distinctive quality ofplace for which d/uknown ° We will continue tobeounique ond caring city that stresses environmental conservation, fosters artistic expression, and /oopen tonew ideas and innovation = We will plan and direct our efforts tofulfill this Vision for the long term with oconstant view toward being on open, wo/oonn/n{7 community for o0 with o/zoa/bme economic future VALUE STATEMENTS for Success that Support the Vision: COMMUNITY 0 Community affordability, including in available housing and childcare ~ Belonging through mutual respect and openness, inclusion and equity ° Quality oflife that underpins the Citv's economic vibrancy ° Environmental resilience, including addressing climate change and ecosystem conservation * Regional cooperation, including in support for public safety and homelessness ° Respect for the citizens veserve, for each other, and for the work wedo ° Excellence ingovernance and city services ° Sustainability through creativity, affordability and rightsized service delivery ° Public safety, including emergency preparedness for climate change risk Page I of 10 fz,�� Quality infrastructure and facilities through timely maintenance and communit investment PREVIOUS COUNCIL ACTION Typically the Council approves rate adjustments for the enterprise systems annually with the last rate adjustment approved onJune 4,20S. June 4,2019 Meeting Minutes June 4, 2019 Staff Report BACKGROUND Water Utility Fund Proposed Rate Increases The water rate analysis proposes lO%increases for the next few years toaccount for projected mxpenaem within the fund including the new water treatment plant. For reference, the Water Fund along with other enterprise funds have seen significant cost increase in goods and services, construction and personal costs since 2019. The construction costusing Portland indexing has increased 3l7% from quarter lof2OlStoquarter 3of2O23,reference figure ( below. Audited personal expenses have increased 5.7%from 2Ol@through 2O22os shown intable A-2ofthe Water Rate Technical Memorandum and staff expects this to significantly increase moving forward as the Water Divisions, specifically distribution have suffered from staffing shortages over the past few years and currently all divisions are fully staffed. The City is making a large capital investment in the treatment plant that will ensure a sustainable and secure water supply into the long term, which shows forward planning at a time when many rornrnunihem are not investing in their water infrastructure; in addition, the City is working with TAP partners to ensure the secondary resilient source of water for emergencies and drought -year water supplies, and investing in infrastructure that will allow the sale of Ashland's water to TAP partners during the winter when Ashland has onexcess ofwater supplies. Ashland's costs are high now because ofthe infrastructure investments itiomaking. Page 2of/o Figure 1: Construction Cost Index Overall Construction Cost Index Q3 2023 (JANUARY 2009 = 1 GO) 2013 211 2312 2013 2014 2015 2va 20ti 2318 2019 2023 2021 2022 2023 Q1 2022 C2 2322' Q3 National M Portland : Seattle Figure 2 shows the projected chargers for the water utility considering the six year forecasted spending. The typical monthly residential water rate is based on a water use of 1000 cubic feet (7,480 gallons/month, 250 gallons per day per household). Figure 2: Water Rate Impacts Single Family Home Bill for 1,000 cubic feet 1011 Flat Charges Use Charges $99.35 $100 $9031 $80 $74.67 $67.89 $61.71Kr $60 $40 j at 121 $20 'p N Z' YM . . . . . . . . . rns CURRENT Jan-24 Jul-24 Jul-25 Page 3 of 10 Water Treatment Plant Project Funding City staff is still coordinating with PFM the City's Financial Consultant along with the Bond Attorneys from Hawkins to review the proposed loan agreement with the Environmental Protection Agency (EPA) and develop the Master Declaration required to utilize the EPA'a VV|F|4 Funding program for the project. To proceed forward with the VV|FNprogram for funding ofthe project, the Council was required to approve a borrowing resolution, which was done at the September 201h 2022 Business Meeting: When the City first applied for WIFIA funding through the EPA the project cost used was much lower than currently anticipated and the City was assuming an 80/20% split with WIFIA funding 80% of the project and the remaining 20% coming from another funding source. In coordination with the EPA since approval of the original bond resolution, it was determined that 100% of the construction costs could be funded through the WIFIA program due to the in -kind match and previously incurred eligible expenses provided by the City. These matching funds and previous expenses include the value of the parcel where the plant will be constructed and engineering/planning expenses to date. The EPA has determined the maximum eligible loan amount considering the in -kind match is$75,73O]72. The Bond Resolution previously approved bvCouncil did not consider the increase to projectcosts and also availability offull VV|F4funding for the project. Thus, o new bond resolution will be required to be approved by Council as staff moves towards loan closing. Staff expects to bring an updated resolution to Council inJanuary for discussion and approval, WIFIA Process Steps: l.Deve|opond4ppxzvmVVoterHevonuoBondReoo|ution(rornp|eted,butneodstobaoedone) 2.PostPub|icNnLiuenfVVotorRmvenumUondReno|ution(Cornp|eLedbutnuedotoberedone) 3.Obtuin indicative Credit Rating and Preliminary Plan of Finance (completed) 4.Complete VV|F|&Loan application /rornp|oiod\ 5.Submit Application to EPA (completed) G.Develop water revenue and rate forecast /cornp|eted\ 7.F(no|ire Plan ofFinance and Obtain Final Credit Rating /|n process) 8.NogotioteFino|TernnuondConditionsforBorrovvingVvithEP4/inproceao\ 9. Close Loon (Anticipated Apri|/Moy2O24\ in May of this year, HDR updated the opinion of construction costs to match the 90% design|eve|the pnqooi current is at reference table l be|ovv. Currently the opinion of cost for the construction of the plant ranges from a high of $70,424,000 to a low of $55,115,000. This opinion of cost also includes contingency, escalation and market volatility factors. Page 4o/0 Table 1:Water Treatment Plant Opinion mfCost Cost S1111mlary Summary of Opinion of Probable Construstion Cost WTP Construction Costs Summary of Opinion of Probable Construction Cost ET BESS Construction Costs In on attempt to directly offset project costs staff has applied for Bipartisan Infrastructure Low /Q|A grant funding given to the State of Oregon for communities with emerging contaminants. The City of Ashland is listed with the State for emerging contaminants, specifically for algal toxins. Staff is also coordinating with the Evan Brooke Associates on other grant funding opportunities for the plant and other enterprise capital projects defined in the six year Capital improvement Plan. Wastewater Utility Fund Proposed Rate Increase The projectedroteinonausehzrthoVVostowobarfundwuodove\VpedoaporLofthefinonoio|onokmia contained within the recently adopted Collection System Master Plan. This analysis accounts for costs associated with both the Treatment and Collections funds for wastewater. The average wastewater rate is based on the 600 cubic feet of wastewater (sewer) usage. There was no rate increase applied in 2023 as developed in the financial analysis section of the master plan. Figure 3 shows the project rate structure through 2028. Page sof 10 ";,ir ..ram Figure 3: Wastewater Rate Impacts M! J!!1111111111111111111111111 11111111II " 1:111,11!"if 1. At, i 2 0 Storm Drain Utility Fund Proposed Rate Increase The proposed storm drain rate increase for 2024 is 7%. The last rate increase enacted in the storm drain fund was in 2022 and 9%. Table 2: Storm Drain Rate Impacts Annual System -Wide Rate Increase 1 0.00% 9.00% 9.00% 7.00% 6.00% 6.00% 6.01Ylo 5.00% 4.00% Monthly Storm Dralange Fee Single Family (per residence) $499 $4-99 $5.44 $593 $6.34 $672 $7.13 $756 $7-93 $825 Condominium 1-9 Units (per unit) 214 214 233 254 272 2-88 306 3.24 340 3-54 Multi -Family 1-9 Units (per unit) 214 214 2-33 254 272 2-88 306 3-24 340 3.54 Mobile Home and Trailer 1-9 Units (per unit) 2.14 214 233 254 2-72 288 3-06 324 3.40 154 Other (per 1,000 sq- It- of impeNous surface area) 166 1-66 181 1.97 211 2.24 237 251 2.64 274 Minimum Charge Residential Accounts $4-99 $4.99 $544 $5.93 $634 $6-72 $T13 $7.56 $793 $825 Commercial Accounts 499 4.99 5-44 593 6-34 672 7.13 7-56 T93 825 k�� ~ Affordability The Council has discussed metrics associated with affordability as part of an overall decision making process associated with utility rates, A common standard in budgeting is to account for 6-10% of your income tobeassociated with monthly utilities. From Census data the 2O2lmedian income for Ashland io $63,641/onnuoUyor$5,383/nnonth. Staff has developed the tables below showing the overall utility cost and associated median income level. Table 3 shows the cost of each utility on a month basis along with the percentage of monthly innorneU*dtoeoohuti|ityintheuurn*ntcondibon.GeneroU\\over2%perud|ityiaconnidered^hiQh^ond over 2.5% is considered burdensome. The tables below show the general overall utility bill impact including City utilities and franchise related utility costs (natural gas, trash) Table 3: Utility Affordability Current Utility Bill Affordability Analysis ZOI1Median Household Income $ Ei303.42 2% of Median Household Income Per Utility Last Update Utilities Monthly Rate % of Median Income Table 2shows the projected utilitvuoatundovenzUporcentoQeogoinatthernedioninconle|ovowithoU of the rate increases currently projected via a rate study or financial analysis completed as part of the master planning process. Page 7/fl0 J Table 4: Utility Affordability Projected Projected Update Utilities Monthly Rate %of Median Income 2023(3%) Street Utility Fee $ 9.85 0.19% 2024 (7%) Storm Drain Utility Fee $ 5.82 0.11% 2024 (6%) Wastewater (average) $ 57.45 1.08% 2024 (10%) Water (average) $ 67.88 1.28% 2023 Electric (average) $ 76.88 1.45% 2023 Ashland AFN $ 65.00 1.23% 2022 Recology $ 22.67 0.43% N/A Natural Gas $ 56.00 1.06% Totals $ 361.55 6.82% *Projected in the adopted Storm Drain System Master Plan (July 1, 2024) "Projected in the adopted Collection System Master Plan (July 1, 2024) ***Projected in October 2023 Water Rate Analysis Table 4 comes directly from the Water Rate Memorandum and shows the specific relation of water rates to median household income. Item Annual Monthly Oregon Median Household Income (MH 1) [1) $70,084 $5,840 Ashland MHI f1l $63,641 $5,303 CURRENT Water Bill 3/4" using 1,000 cu. ft. $741 $61.71 Water Bill as % of Ashland MHI 1.16% January 2024 Water Bill 3/4" using 1,000 cu. Ft. $815 $67.89 Water Bill, as % of Ashland MHI 1.28% Water Rates @ 2.0% of MHl [21 $1,273 $106.07 Snurce: US Census. fl] 2021 5-year American Community survey estimate. f2] Per EPA guidelines a typical water bill greater than 2% is high and a typical water bill greater than 2.5% is burdensome. As shown in the tables the total billing still falls within the affordability metrics previously discussed by Council. Cost of Service The Council has also shown interest in a more progressive water rate structure and in order to create a new structure or update the current tiered system it is recommended to update the 2016 Cost of Service Page 8 of 10 Study. The water rates analysis also makes the same recommendation. Staff estimates this study will cost approximately $50,000 and will need to be lead by a consulting firm. There are funds available in professional services for the biennium to perform such o study if directed by Council. Low Income Assistance Program As part of the scope ofwork for utility rate analysis, Honsford Economic also analyzed the current utility assistance program and developed a memo on recommendations reference attachment #2. Staff has discussed these recommendations with Isleen Glatt, Senior Services Superintendent, who works with many individuals who participate or try to participate in the program. The main concern is modifying the income level and age restriction requirements in order to give more access to the programs for community members. in review of the work Hansford performed Isleen made the following recommendations to be considered as well: The current program uses l00%orl25%of usthe criteria, but this iaunextremely low income by Oregon cost of living and housing. Often times low-income seniors who one interested in the program make just olittle too much Loqualify for assistance. Medicaid, which iavery hard toqualify for, uses l38-l5O%ofFederal Poverty. Most low-income programs inour area use l5O-200%ofFederal Poverty. I recommend adopting 150% and 200% for our senior utility discount, or the equivalent income level using local median income standards, as used in the City's ALIEP benefit and Affordable Housing FISCAL IMPACTS The City contracted with Hansford Economic Consulting for $27,750 to perform the water rate analysis and also review and make recommendations regarding the City's current low income assistance program. Todate $23,803has been expended towards the contract amount. The 2023-2025 Biennial Budget proposed rate increases support the overall funds including personnel, operations, capital and debt expenses. The proposed rate increases relate to anticipated revenues to offset expenditures within the enterprise utility. Should the Council not want to move forward with adoption of rate increase to support projected expenses, offsetting reductions in expenditures must be made. DISCUSSION QUESTIONS Does the Council have any questions regarding the rate forecasting completed? Does the Council have any questions about a cost -of -service study? Does the Council have any questions about the low income utility assistance program? SUGGESTED NEXT STEPS Next steps include bringing forward specific rate resolutions for Council approval along with an updated borrowing resolution for the Water Treatment Plant project. Page Sof0 REFERENCES & ATTACHMENTS Attachment #1: Water Rate Technical Memorandum Attachment #2: Low Income Utility Assistance Memorandum Attachment #3: 2016 Water Cost of Service Study Attachment #4: Resolution 92-22 Page 10 of 10 P0Box 1O384 Phone: 530^412-3676 Truckee, CA Email: cathehne@hansfordeconmm E C C) (C) N11 1 (7 0 96162 Technical Memorandum To: Scott Fleury, Public Works Director From: Cathe[iD2H8OSfOrd Date: October 75,2023 Subject: Water Rates Update Purpose The City of Ashland (City) charges water utility rates for provision of water services. In 2015, Hansford Economic Consulting LLC (HEC) completed a full cost -of -service study for the City and water rates were updated pursuant tothat Study. Since then, the City has made some percentage increases inthe rates toaccount for rising costs, and revision ofsome major capita|inoprouenncnt plans, most notably for the water treatment plant; however, water rates have not increased since July 1,2019.HEChas updated the water rates projection periho[it/scurrentvvaterfundfinancia| needs, including its updated infrastructure costs and financing strategy to complete its new water treatment plant. This memorandum presents the analysis of current and future financial health of the water utility fund, including projection of water rates for revenue sufficiency for the next five years. New water rates need tobeimplemented inJanuary 2O24. Support tables are included inAttachment A. Major Findings The financial analysis makes the following major findings: 1. The water utility fund isinastrong financial position, but toremain fiscally healthy, rates will need tocontinue tpbcincreased due tomajor inhastructurecosts most notably the construction of the new water treatment plant, as well as typical annual inflationary pressures onoperations costs. The analysis projects thatsixlOY6increasesvviUbaneeded, beginning January 2O24,followed 6vfive increases each July, beginning July 2U24. The water fund needs to maintain a high cash balance until the new water treatment plant project is completed. Actual costs may be greater than estimated, and the pjec1nnaytake longer to complete than anticipated. In addition, the City has several other high -cost capital projects taking place over the same timeframe that require reimbursement from other parties: (a) The Talent-Ashiand-Phoenix Water System (TAP) partners and (b) an American Rescue Plan Act (ARPA) grant. Strong reserves are necessary for cash flow purposes when capital outlay ismade onareimbursement basis. DRAFT Page 2of9 October 25,2D23 I The City should conduct a cost -of -service study to ensure customer groups are paying for their share ofwater service costs and to ensure a rate design that reflects customer use characteristics and administrative goals of the water fund. This memorandum presents the percentage increases of existing water rates as a full water rates study requires greater time and resources tocomplete. Table I on the next page summarizes the projected water rates for the current and next two bienniums (six fiscal years). Figure 1 shows the financial impact to a single-family home using 1,000 cubic feet of water in a month. Per Environmental Protection Agency and State of Oregon measurements of cost burden reasonableness (explained in this memorandum), monthly water bills will continue tobeaffordable inAshland with these rate increases. If the City's water rates had increased with the West Region Consumer Price Index between June 2019 and June 2023, the water bill for a household using 1,000 cubic feet would be $73.89 starting July 1, 2023, as the cost of goods in the western US has increased 20% since 2019. The water rates for January 2O24($67.8g)are lower than they would bebvapplying the ZO%increase ($72.88);this shows the City is spending prudently and managing its resources efficiently. Figure I Single Family Home Bill for 1,000 cubic feet Flat Charges Use Charges $10929 $99.35 $100 $90.31 $82.13 $80 67 - $67.88 $61.71 $60 $4"RISE 516 ZZ $ZO ROM $O Prepared by HEC DRAFT Page 3 of 9 October 25, 2023 Table I Summary of Rate Increases for the next Six Years Rate Component Rates Implementation Current 1/1/2024 7/1/2024 7/1/2025 711/2026 71112027 7/1/2028 10.0% 10.0% 10.0% 10.0% 10,0% 10.0% Monthly Customer Charge per Bill $13.33 $14.66 $16.13 $17.74 $19.51 $21.46 $23.61 Monthly Service Charge per Meter [1] 3/4" and Fire Guards V. 1.51, 2" 3" 4" 6" 81, USE CHARGES FOR POTABLE WATER Residential [2] 0 to 300 cf 301 to 1,000 cf 1001 to 2,500 cf * 2,500 cf (2,501 - 3,600 cf June to Sept) * 3,600 cf (June to Sept only) Commercial 0-50,000 cf > 50,000 cf Insitutional $15.62 $17,18 $18.90 $20.79 $22.87 $25.16 $27.68 $16.29 $17.92 $19.71 $21.68 $23.85 $26.24 $28.86 $74.52 $81.97 $90.17 $99,19 $109.11 $120.02 $132.02 $118.41 $130.25 $143.28 $157.61 $173.37 $190.71 $209.78 $237.45 $261.20 $287.32 $316.05 $347.66 $382.43 $420.67 $376.59 $414.25 $455.68 $501.25 $551.38 $606.52 $667.17 $741.01 $815.11 $896.62 $986.28 $1,084.91 $1,193.40 $1,312.74 $1,174.75 $1,292.23 $1,421.45 $1,563.60 $1,719.96 $1,891.96 $2,081.16 per month, per unit $0.0280 $0.0308 $0.0339 $0.0373 $0.0410 $0.0451 $0.0496 $0.0348 $0.0383 $0.0421 $0.0463 $0.0509 $0,0560 $0.0616 $0.0472 $0.0519 $0.0571 $0.0628 $0.0691 $0.0760 $0.0836 $0.0609 $0.0670 $0.0737 $0.0811 $0.0892 $0.0981 $0,1079 $0.0784 $0.0862 $0,0948 $0,1043 $0,1147 $0.1262 $0A388 per month, per meter $0.0348 $0.0383 $0.0421 $0.0463 $0.0509 $0.0560 $0,0616 $0.0472 $0.0519 $0.0571 $0.0628 $0.0691 $0.0760 $0.0836 $0.0334 $0.0367 $0.0404 $0.0444 $0.0488 $0.0537 $0.0591 Commercial & Institutional Irrigation October -May $0.0376 $0.0414 $0,0455 $0.0501 $0,0551 $0.0606 $0.0667 June - September $0.0510 $0.0561 $0.0617 $0.0679 $0.0747 $0.0822 $0.0904 Bulk Water [3] $0,0384 $0.0422 $0.0464 $0.0510 $0.0561 $0.0617 $0.0679 Fire Protection Service [4] Meter Replacement Charge $1.34 $1A7 $1.62 $1.78 $1.96 $2.16 $2.38 Meter Charge $15.62 $17.18 $18.90 $20.79 $22.87 $25.16 $27.68 Service Charge, if applicable $13,33 $14.66 $16.13 $17.74 $19.51 $21.46 $23.61 Usage Charges $0.0384 $0.0422 $0.0464 $0.0510 $0.0561 $0.0617 $0.0679 TID Non -Potable Water per irrigation season, per acre or portion of Unmetered Service $241.18 $265.30 $291.83 $321.01 $353.11 $388.42 $427.26 Metered Service: Service Charge per meter as above Meter Replacement Fee [5] per meter as above Water Consumption per c.f. $0.0025 $0.0028 $0.0031 $0.0034 $0.0037 $0.0041 $0.0045 Outside City Limits All rates and charges for water service provided outside the city limits will be 1.5 times the inside city rates and charges. Source: City of Ashland. sum rates [1] All customers charged the flat monthly fees every month regardless of whether water is taken. [21 For residential customers with separate irrigation meters the metered irrigation water is added to the domestic water use. Irrigation water is charged the 301 to 1,000 cf rates for use 0 to 1,000 cf. [3] For temporary water provided through a bulk meter on a fire hydrant. [4] This rate shall apply to all water taken through fire protection services or fire guards. [51 Due once per year on first TID non -potable water bill. Prepared by HEC DRAFT Page 4of9 October Z5,2OZ3 The water rate analysis presented in this memorandum is not a full cost of service study examining proportionate costs tndifferent customer groups; rather, itprojects finanda|needsnverthecurrent and next two bienniums, and how to fund those needs. Water rate revenues are projected under various assumptions including these: w Water demand bprojected tostaystatcoverthenexttenyears.Akhou8hnevvvvater customers may hook into the water system during this period, other factors may cause water demand to remain at their current level, or even decrease. Factors that affect demand include, amongst other factors, the weather, water restrictions, and installation of more water efficient water appliances. Table A-1 presents historical water production for the past eleven years. The table demonstrates the variability of water demand from year to year and it also shows that total water produced to satisfy demand decreased between 2013 and 2022. Water production has been greater in 2023, likely due to the ending of the most recent drought. w Operating expenses, which account for annual costs tnrun the water system excluding any major capital repairs ornew infrastructure installations, are projected through the six -year period based on historical annual increases in cost as well as City staff input on anticipated future cost increases in the current biennium. Historical water fund expenses from 2016 through 2022 are presented in Table A-2. On average, expenses increased 3.7% per year over the six -year period. The projection ofrevenuorequirennentisbosedonthehistorima|changes of costs by cost category, and for the next two bienniums, ranges between 4.2% and 4.7% each year. � Aside from water rate revenues, the water fund receives non -potable water revenues from customers using the Talent Irrigation Ditch (TID), and other miscellaneous income such as interest income and new service installation charges. These revenues are credited against the estimated annual costs to determine the revenue requirement (the amount of money that must be raised through water rates). System development charges, which are specifically collected to mitigate new development's impact on the water system, are not credited against revenues to be raised by rates. Revenues that are credited in the analysis are based on historical and budgeted numbers, as well asconservative estimates offuture revenues. Historical revenues are presented in Table A-3. Total water sales have remained similar each year since 2O19due tothe freezing ofwater rates. � In addition to operating expenses, the water utility fund incurs costs for capital expenditures. Capital expenditures include costs torehabilitate major infrostTucturecornponents,and/or install new or replacement facilities. Table A-4 presents the City's Capital Improvements Plan /OP\ for water for current and next two bienniums. The Utv's estimated costs were increased for inflation annually over the next five years, apart from the water treatment plant estimated costs asthe engineering estimates for that project a|neadyindudeinfladon inthe project cost estimates. Prepared byHE[ DRAFT Page 5nf9 October 2S,2Ol3 w The City's financial advisor has provided a funding strategy for the new water treatment plant total estimated cost of $70 million. The City has secured a Water Infrastructure Finance and Innovation Act (WIFIA) loan for the full amount of $70 million. The water fund's existing debt service and the estimated new water treatment plant dmh1 service is shown in Table A- S. � The water rate analysis assumes additional City debt funding to complete the CIP within the six -year period. Table A,6shows the financing costs and estimated annual debt service assumptions to raise bond proceeds of $6.7 million to fund dam safety improvements. � The projected revenue requirement for each year in the forecast is presented in Table A-7. The revenue requirement is estimated to increase from approxirnate|y$12.O million this fiscal year to $16.5 million in five years. The revenue requirement may go up and down in the in-between years because of cash -funded capital improvement costs and debt service schedules. * One of the revenue credits in the analysis is rate revenue from TID raw water customers. City rates charged toT|D customers are assumed toincrease atthe same percentage increase as all other City water customer fees. A cost -of -service analysis may demonstrate the need for TID customer rates to increase at different rates; however, the same is assumed for the purposes ofthis analysis. T|Drevenue projections areprovidcdinTab|eA-8- w it is preferable to adopt a smooth rate schedule that does not increase and decrease each year toexactly account for the revenue requirement. Based on the assumption that water demand is static, as previously discussed, the water revenues are increased by 10% in January 2024, followed by five annual 10% increases beginning July 2024. Table A-9 presents the estimated cash flow for the water fund through fiscal year ending IO29.The table demonstrates at least 115% debt service coverage is achieved and positive net revenue is generated after accounting for operating expenses and debt service. The ending cash balance each year is an estimate of available cash for restricted, committed and unassigned water service orproject needs.PerternnsoftheVV|F|A|oan,the[itycou|destab|ishaRate Stabilization Fund ifitchooses to do so. Excluded from the cash flow analysis are loan funds and bond proceeds received by the City, and project costsfundedbvthose|oansondbondproceeds.Theana|ysisexc|udestheoe because ofthe unknown timing ofthe projects' expendiLuresandrevenues.Debtservicefor these projects isindudedinthecashf|ovvano)ysis.Auaresu|L,actua|coshba|ancesnnoybe significantly greater or lesser from one year to the next than shown in the table. Prepared byHEC DRAFT Page 6of9 Results Revenue generated by water rates must be sufficient to cover a I I operating expenses each year and debt service coverage and raise sufficient revenue to fund capital projects that are not debt -financed or covered by existing reserves. Figure 2 shows the current level of water sales revenues, projected revenue requirement, and projected water sales under the calculated percentage increases in water rates, beginning January 2024. The graph shows that a portion of the cash -funded capital improvement costs included in the revenue requirement will be paid for with water fund reserves that have been accumulated for this purpose. Fiuune2 Revenue Requirement and Projected Water Sales �0-]PnjeotedWater Sales . ..N....... Revenue Requirement ~-*—Curren1Rates Revenue g»s - $4 _ $z BE Historical and projected annua|endingcashba|ancesareohovvninFigume3.Theoashba|anceb projected tohave peaked infiscal year ending 2O2]asreserves were being increased tVfund upcoming known capital project costs.TheOtyvvi||useaconnbinationofQran1s,|oons,ratesrevenue and cash reserves to pay for capital improvement costs over the next six years. Figure 4shows the projected tota|cashba|anceofthevvaterfundthroushfisca|year2U25Landthe target minimum cash balance. The target minimum cash balance is equivalent to 20% of revenues plus one year of debt service (excluding City General Obligation bonds and the WIFIA loan, which are not secured by bond reserves). This amount enables the City to'respond to emergency expenses, decreased revenues due to drought and fires if structures are destroyed, and to put aside one year of debt service, which is typically required to be held in a restricted account per the terms of the Prepared by HEC DRAFT Page 7 of 9 October 25, 2023 Figure 3 Historical and Projected Water Fund Cash Balance $16,000,000 Projected $14,000,000 Historical $12,000,000 $10,000,000 $2,000,000 my $6,000,000 $4,000,000 iN $2,000,000 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Figure 4 Projected Water Fund Cash Balance Estimated Cash Balance --O—Target Minimum Balance $18,000,000 $16,000,000 �i A nnn nnr) FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Prepared by HEC Impact on Residential Customers The EPA considers a water bill under 2.0% of median household income to be affordable. Currently, the water bill is $61.71 (about 1.16% of area median household income). With the first rate increase of10Y6inJanuary 2O24,the bill for l,OOOcubic feet ofwater would be$67.8q,or1.280ofmedian household income, as shown in Table 2 below, keeping the water bill within what is considered the threshold range ofaffordability inthe industry. Table Impact of Rates on Household Affordability Item Annual Monthly Oregon Median Household Income (MHU[1] $70,084 $5,840 Ashland MH|[1] $63,641 $5,303 CURRENT Water Bill 3/4" using 1,000 cu. ft. $741 $6171 Water Bill ea%ofAshland K4U| 1.16% January 3024Water 8i|| 3/4" using 1,000ou. Ft. <815 $67.89 Water Bill am%ufAshland K0HI 1'28% Water Rates @ 2.0Y6 ofMH| [2] $1,273 $I06.07 Source: US Census. DU2UJ15-yearAmerican Community Survey estimate. [I] Per EPA guidelines a typical water bill greater than 2Y6 is high and atypical water bill greater than 2.G%isburdensome, To receive preferable financing terms and/or grant funding from the State of Oregon, the water bill needs to be at least $66.29 when using 1,000 cubic feet of water in a month in Ashland (this is 1.25% of median household income). With the increase in rates, the City will qualify for preferential loan terms. The State uses the last decennial US Census data and adjusts each year to determine the current median household income. The estimate of median household income used in this analysis is the 2021 5'yearACS figure for Ashland. Table 2 also shows that monthly water bills would need to be greater than $106.07 per month for the EPA to consider the bill unaffordable. Table 3 compares a typical water bill for a 3/4" meter using 1,000 cubic feet to other cities and communities in Oregon. Ashland's water bill is at the higher end of the range, reflecting the large capital investments in the treatment plant that will ensure a sustainable and secure water supply into the future. In addition, the City is working with TAP partners to bolster its secondary source of water for emergencies and drought -year water supplies, and investing in infrastructure that will allow the sale of Ashland's water to TAP partners during the winter when Ashland has an excess of water supplies. These actions show forward planning at a time when many communities are not investing in their water infrastructure; in the long run the benefits of these actions will be reaped by ratepayers. Prepared byHEC DRAFT Page 8of9 October Z5,2O23 Table Comparison Water Bills for a Typical Residence in Oregon Base Charge Base Use Water Purveyor as % of Bill Charges Charges Monthly Bill for 10H[F 3/4"Meter Klamath Falls 13% $3.56 $23.80 $27]6 Central Point 579& $17.37 <I3.06 $30.43 Medford 6896 $21.92 $10.21 $32.13 Corvallis 4196 $18.47 $26.46 $44.93 Phoenix 88Y6 $40.61 $5.36 $45.97 Eagle Point 39% $18.11 $28.08 $46.I1 Bend 55% $25.99 $21.60 $47.59 Talent 4696 $22.11 $2575 $47.86 Springfield 4896 $2110 $25.26 $48.36 Grants Pass 77% $3762 $11.25 $48.87 Tualatin 2296 $1100 A39.00 $58.00 Roseburg 5896 $30.32 $21.60 $51.91 Ashland (current) 47Y6 $28.96 $3276 $61.71 Albany 35% $23.01 $43.10 $65.11 Ashland (Jan.2O24) 4796 $31.84 $36.05 $67.89 Tualatin Valley VVD 1496 $11.71 $70.30 $82.01 Source: Rate schedule for each water purveyor, July 2023. compare 2023 FINANCIAL ANALYSIS m CN ON 0 0 0 a o o o C) > Ln Ln Lr) tD 0 Nct zt 00 lD Ln a 0) I NCL 0 1-1 I-q --1 1-1 1--1 CD Ln 4 > 0- 4- > 0 S (Y) o F- 0) m k.0 (14 m IH rl m 1.0 r1l m 1--i m r� 0 cn r� 0 LL m = > m. 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V} Ln tD 00 Na 0)N Vi ir> L.L +� Lu (U _ v E 0 Q az .+ > -a N = a 0 N Q) O = 'CS L� LO U fO O E 03 m ,�, N tw tU •� to Q7 N f' L in — �+- Cn 0 0 -O q) 0 C y O ay-+ CO ice., ? �_` C M C) .F, cn p v) a) cn Ln L0 C 'p •U "O 03 O 0 N � U' 4 V, aj ._ U V o0 w p c0 Q) Li O t0 v� '> c d O c Q=i 0=3 .0 M 11 Ln Lt7 4- CA � L ti � O O > Q? � 03 � � � N N � !0 v w E C`? @ an aA ram-+ to o O v to ��' - wZ -0 Q .,Z .0 +� 0 w>: o = 'c u a 3= z3 Q w a h > ro � in -a} E , O Q w Ln 41 0 O O i a O v) � I� 0_ w u n Table A-4 City of Ashland Water Rate Study DRAFT Water Capital Improvement Plan - Inflated Dollars All estimates inflated with the exception of the treatment plant costs (inflation already built in) Water Funding FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Improvements Source BN 23-25 BN 25-27 BN 27-29 Water Supply inflation assumption--> 3.5% 3.5% 3.5% 3.5% 3.5% Dam Safety Improvements New Bonds $3,313,000 $3,429,000 $0 $o $0 $0 East & West Fork Transmission Line Rehabilitation Cash $2,300,000 $0 $0 $0 $0 $0 7.0 MGD Water Treatment Plant Debt Package $4,000,000 $40,000,000 $26,424,000 $0 $0 $0 Reeder Reservoir Sediment Removal Cash $0 $0 $172,000 $0 $0 $191,000 Subtotal Water Supply $9,613,000 $43,429,000 $26,596,000 $0 $0 $191,000 Pump Stations TAP BPS Backup Power ARPA Grant $417,000 $0 $0 $0 $0 $0 Hiliview BPS Replacement Cash $0 $0 $402,000 $1,248,000 $0 $0 Subtotal Pump Stations $417,000 $0 $402,000 $1,248,000 $0 $0 Water Distribution Annual Pipe Replacement Cash $300,000 $311,000 $322,000 $333,000 $345,000 $357,000 Distribution Pipe Projects Cash $660,000 $603,000 $1,519,000 $345,000 $1,591,000 $666,000 Subtotal Water Distribution $960,000 $914,000 $1,841,000 $678,000 $1,936,000 $1,023,000 Operations and Maintenance Telemetry Upgrades Cash $80,000 $0 $0 $0 $0 $0 Tolman Creek Road PRV Station Cash $0 $0 $0 $84,000 $0 $0 FERC Part 12 Inspection Cash $600,000 $0 $0 $0 $0 $0 Subtotal Operations and Maintenance $680,000 $0 $0 $84,000 $0 $0 Water System Studies Rezoning Study Cash $0 $0 $0 $0 $0 $60,000 Water Conservation and Management Plan Update Cash $75,000 $0 $0 $0 $0 $0 Water Master Plan Updates Cash $0 $0 $108,000 $0 $0 $0 Subtotal Water System Studies $75,000 $0 $108,000 $0 $0 $60,000 TAP Improvements and Studies Non-Peak/Emergency Supply Connection to Talent ARPA Grant $236,000 $0 $0 $0 $0 $0 N. Phoenix Road Pipe Improvements Cash (1] $0 $0 $0 $0 $1,063,000 $1,100,000 N Phoenix Road Master Meter Connection Cash [1] $0 $0 $0 $0 $129,000 $0 Regional BPS Short -Term Expansion TAP $211,000 $0 $0 $0 $0 $0 Regional BPS Programming Updates ARPA Grant $0 $105,000 $0 $0 $0 $0 Talent BPS Generator Upgrade (Option 1) ARPA Grant $0 $461,000 $0 $0 $0 $0 Talent BPS Expansion for Talent & Ashland (Option 1) TAP $0 $143,000 $0 $0 $0 $0 Talent BPS Seismic upgrades ARPA Grant $0 $104,000 $0 $0 $0 $0 24-inch Pipe Seismic upgrades (Hwy 99 Phoenix) ARPA Grant $0 $1,680,000 $0 $0 $0 $0 Talent to Ashland Pipe Improvements (Option 1) Cash [1] $0 $0 $0 $0 $0 $799,000 Talent BPS Additional Hydraulic Analysis Cash [1] $0 $0 $7,000 $0 $0 $0 Subtotal TAP Improvements and Studies $447,000 $2,493,000 $7,000 $0 $1,192,000 $1,899,000 TOTAL WATER CAPITAL PROJECTS $96,293,000 $12,192,000 $46,836,000 $28,954,000 $2,010,000 $3,128,000 $3,173,000 Treatment Plant Debt Package $70,424,000 $4,000,000 $40,000,000 $26,424,000 $0 $0 $0 City GO Bonds $6,742,000 $3,313,000 $3,429,000 $0 $0 $0 $0 ARPA Grant $3,003,000 $553,000 $2,350,000 $0 $0 $0 $0 TAP Partner Reimbursements [2] $207,550 $123,709 $83,841 $0 $0 $0 $0 Reserves / Cash $15,916,450 $4,102,291 $973,159 $2,530,000 $2,010,000 $3,128,000 $3,173,000 Source: City of Ashland May 2023, dr, irfl [1] Potential cost -share with TAP Partners, unknown at this time. [2] Ashland is responsible for 41.37% of the total cost; as the project lead, Ashland will pay the contractors to complete the work with reimbursement from Talent and Phoenix. Prepared by HEC 1210340 Water Made[ Oct2023 V2 10/25/2023 Table A-5 City of Ashland Water Rate Study Existing and Projected Debt Existing Debt FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Budgeted 2 3 4 5 6 City GO Bonds (FF&C) $194,125 $195,463 $196,469 $197,131 $197,438 $0 MWC Debt for SDC Purchase $163,756 $163,756 $163,756 $163,756 $163,756 $163,756 IFA DEQ Loan S14005 $136,207 $136,207 $136,207 $136,207 $136,207 $136,207 IFA DEQ Loan S16021 $394,098 $394,098 $394,098 $394,098 $394,098 $394,098 WIFIA Treatment Plant Debt [1] $0 $702,000 $1,638,000 $2,574,000 $3,276,000 $3,705,287 Total Existing Debt Service $888,186 $1,591,524 $2,528,530 $3,465,192 $4,167,499 $4,399,348 Source: City of Ashland May 2023, and HEC. debt [1] WIFIA $70 million loan. Prepared by HEC 1210340 Water Model Oct2023 V2 10/25/2023 Table A-6 City of Ashland Water Rate Study DRAFT Estimated New Debt for Other CIP Improvements Item Assumptions FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Dam Safety Improvements $3,313,000 $3,429,000 $0 $0 $0 $0 Total Debt Funded Improvements $3,313,000 $3,429,000 $0 $0 $0 $0 Bond Sizing Capitalized Interest 12 months $182,220 $188,600 $0 $0 $0 $0 Issuance Costs 3% $99,390 $102,870 $0 $0 $0 $0 Underwriter's Discount 1% $33,130 $34,290 $0 $0 $0 $0 Bond Reserve Fund 1 year debt service $332,800 $344,400 $0 $0 $0 $0 Estimated Bond Size $3,960,540 $4,099,160 $0 $0 $0 $0 Bond Size Adjusted for Rounding 1.20 bond load $3,976,000 $4,115,000 $0 $0 $0 $0 Estimated Annual Debt Service [1] $332,800 $344,400 $0 $0 $0 $0 Estimated Debt Service Payment $332,800 $677,200 $677,200 $677,200 $677,200 Source: NEC estimates based on planned CIP. new debt (1] Debt service estimate based on sale of revenue bonds with the following terms: interest rate: 5.5% years: 20 Prepared by HEC 1210340 Water Model Oct2023 V2 10/25/2023 Table A-7 City of Ashland Water Rate Study Projected Water Fund Revenue Requirement DRAFT Revenues and Expenses FY 2024 Current (1) FY 2025 2 FY 2026 3 FY 2027 4 FY 2028 5 FY 2029 6 Operating Expenses Budgeted [1] Projected Personnel 3,5% $2,709,283 $2,767,361 $2,864,219 $2,964,467 $3,068,223 $3,175,611 Supplies 2.0% $360,525 $358,900 $366,078 $373,400 $380,868 $388,485 Repair & Maintenance 8.0% $579,500 $564,330 $609,476 $658,235 $710,893 $767,765 Communications 2.0% $22,200 $21,650 $22,083 $22,525 $22,975 $23,435 Contractual Services 3.0% $419,500 $418,000 $430,540 $443,456 $456,760 $470,463 Internal Charges & Fees 5.0% $2,101,797 $2,069,072 $2,172,526 $2,281,152 $2,395,210 $2,514,970 Other Purchased Services 4.0% $78,750 $60,300 $62,712 $65,220 $67,829 $70,542 Franchise Tax 4.0% $705,000 $720,000 $748,800 $778,752 $809,902 $842,298 Conservation Programs 2.0% $94,950 $0 $35,000 $35,700 $36,414 $37,142 TAP Water [2] 3.5% $250,000 $258,750 $267,806 $277,179 $286,881 $296,922 Subtotal Operating Expenses $7,321,506 $7,238,364 $7,579,240 $7,900,086 $8,235,955 $8,587,633 Debt Service & Loan Repayments City GO Bonds (FF&C) Table A-5 $194,125 $195,463 $196,469 $197,131 $197,438 $0 MWC Debt for SDC Purchase Table A-5 $163,756 $163,756 $163,756 $163,756 $163,756 $163,756 IFA DEQ Loan S14005 Table A-5 $136,207 $136,207 $136,207 $136,207 $136,207 $136,207 IFA DEQ Loan S16021 Table A-5 $394,098 $394,098 $394,098 $394,098 $394,098 $394,098 WIFIA Treatment Plant Debt Table A-5 $0 $702,000 $1,638,000 $2,574,000 $3,276,000 $3,705,287 New City Debt Table A-6 $0 $332,800 $677,200 $677,200 $677,200 $677,200 Subtotal Debt Service & Loan Repayments $888,186 $1,924,324 $3,205,730 $4,142,392 $4,844,699 $5,076,548 Capital Improvements Cash Funded Table A-4 $4,102,291 $973,159 $2,530,000 $2,010,000 $3,128,000 $3,173,000 Subtotal Annual Cost $12,311,982 $10,135,847 $13,314,970 $14,052,478 $16,208,654 $16,837,180 Credits New Service Installation 2.0% $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 Interest on Investments constant $146,450 $140,000 $140,000 $140,000 $140,000 $140,000 Miscellaneous 2.0% $25,000 $25,500 $26,010 $26,530 $27,061 $27,602 Non -Potable Water (TID) Charges Table A-8 $79,669 $92,185 $101,322 $111,129 $122,485 $134,652 Subtotal Credits $291,119 $298,485 $308,948 $320,107 $332,843 $346,417 REVENUE REQUIREMENT $12,020,863 $9,837,362 $13,006,023 $13,732,370 $15,875,810 $16,490,763 Current Water Sales (excludes TID) $8,513,731 $8,513,731 $8,513,731 $8,513,731 $8,513,731 $8,513,731 Source: HEC. rev req [1] Budgeted operating expenses and debt service. New City debt service is not budgeted in 2023-25 biennium budget. [2] Accounted for in the 2024 budget under Water Supply - Other Purchased Services. Separated here for MWC rate increases. MWC rate increases are planned at 3.5% per year. Prepared by NEC 1210340 Water Model Oct2023 V2 10/25/2023 Table A-8 City of Ashland Water Rate Study Projection of TID Non -Potable Water Revenue Offset DRAFT FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Costs Assumption Budgeted [1] 2 3 4 5 6 TID Annual Cost Paid by Metered Customers Base Meter Charge [1] SOU (6" meter) $8,892 $9,781 $10,759 $11,835 $13,019 $14,321 $15,753 Lithia Park (4" meter) $4,519 $4,971 $5,468 $6,015 $6,617 $7,278 $8,006 Metered Water Use [2] SOU (6" meter) $17,754 $19,885 $22,015 $24,146 $26,276 $29,117 $31,958 Lithia Park (4" meter) $2,551 $2,857 $3,164 $3,470 $3,776 $4,184 $4,592 Total SOU $26,646 $29,666 $32,775 $35,981 $39,295 $43,438 $47,710 Total Lithia Park (City) $7,070 $7,828 $8,632 $9,485 $10,392 $11,462 $12,598 Total TID !red Customers $33,717 $37,494 $41,406 $45,466 $49,688 $54,900 $60,309 All Other TID Users Costs Annual Flat Fees [3] $41,965 $46,162 $50,778 $55,856 $61,441 $67,585 $74,343 FTotal TID Unmetered Customers $41,965 $46,162 $50,778 $55,856 $61,441 $67,585 $74,343 Total Estimated TID Customer Payments Meter Fees $13,411 $14,752 $16,228 $17,850 $19,635 $21,599 $23,759 Use Fees $62,271 $68,904 $75,957 $83,471 $91,493 $100,886 $110,893 Total Fees $75,682 $83,657 $92,185 $101,322 $111,129 $122,485 $134,652 Source: City of Ashland and HEC. tid offset [1] Customer charges and meter replacement fees for one 6" meter (SOU) and one 4" meter (Lithia Park). [2] [3] Calculated Rate per Metered Connecti $0.0025 $0.0028 $0.0031 $0.0034 $0.0037 $0.0041 $0,0045 Calculated Rate per Acre $241.18 $265.30 $291.83 $321.01 $353.11 $388.42 $427.26 Prepared by HEC 1210340 Water Model Cct2023 V2 10/25/2023 h N d0 O d' C N C u' ui i fC N } utD N O M LL N LL Ln N O N N U. U. e-1 m Ln� rl o m 00 N * m m v) lD rh O W M Ln t--i 00 b 00 m -1 N 00 cf h LD O O ri N d ry U) Lf to 00 00 l0 O Ln r- e-1 ri e-1 in• tt} ih in 00 t t) 00 N N an Ln h cm cn d oll N 00 d m M M 10 111 o m O h c i N O N 00 00 Cl) m `nNrn D) C) O l0 U) N 00 mo) M LM -1 o o rn i o A000 p CD I O 00 00 d' lcf r4tJ} H N 'In h 0) 00 ri h to aNi i/} Vh} i�h i�h CD h N N CD N M N O lzr M 00 O N M N M 1n h m cD h N et h ty h cn 'D Ln Ln o m m o r1 o (J � CO r, to O 0 N Lnn 00 -i 1! t/} ri n CF M i/} ri t!} r-I in in• in jn 0 b O ,�* - N O 4 d N � bA i LL 'a m Q7 t3 v U u !~ N a Ci q Ln N rri 0000 co r1 0 m 0) 0 W M M h cm -i N O t4 OO O 00 en V-i M vt ryl -Ln N LO N CN 1 O O tJ} in. iMn rH lD Ln O M O en 00 "1 d w d Ln Ln O 11 N m Oh) M N O 00 DS 00 Ln N N 01 M h 0) II 00 If, in. in- if)- Un. ri h M d' 0) V .y v (n N t cn v u 4) o v cn � 0 Q) �0 1y aj u) 0 a v -1 v =ra "- (a f Q. -0 CO) U L > N j W C V G cu cc v N US w C p t .J i + w }o N F- O F O. 0) 0) � N CC O Z o Q Z m o o O M M Lr 00 O O IP 00 10 h C h O O M h r-i c-I C) h 00 r M tfy Ph M ,L } i)- Lb in. i/� '1 Lf) 00 O O M 0) Oml tmD o QI O thll O) h lfl N u O Q O m m ri 0 ri m N o m cL 00 Ci N M O-t3 O to M Ln v m m o a o rn o Ln r- O M N ri /)" :--I ihJi rI ih — o in L CL 0 Ln rLn - o .� o M N N 1n MQ)j 0 * N � H 00 lr) u r-1 to O tY'I tJ} N 'In rl M IZ 4.f)- h -i C3) `a O O vi m olc: � o (N h m o o (D at Lr) m r- m O rLq -i N dt 6) y i-4 rq 00 t/} Qj to ,-.1-V} 13 rMI lf)• i/} Z in. Q W rl cl PR) O M tl m eq ON O o Lnn In O ri -1 Ln Ln f i1? t'M N Ln C CLi E > (o Q E 41 L m G a) E r U o C E m Z5 N '- aC hA C > � tl5 O cr U f'0 m a)IL c CY o "g C 'a v biA C cm Z U m Q w H C O C c N :3 c c � (U E �6 Q) 4) N U N 6 Q O }, C p� O bYA v- O u _Q C N O N O 0 nn 7 � 41 � E (D d In N m zs O X w N C n. POBox 1U384 Phone: 530-412-3676 &_,-' Truckee, CA Email: cathehne@hanufordecon.com �� "�� 96162 Technical Memorandum DRAFT To: Scott Fleury, Public Works Director From: Catherine Hansford Date: January 16, 2023 Subject: Senior and Senior Disabled Low Income Utilities Bill Assistance Program =I - The City of Ashland (City) currently has utility bill relief programs for low-income households. Two programs have been set up under the authority of Resolution 92-22. The programs have morphed over time, with Ashland Administrative Policy providing greater detail about the Low -Income Energy Assistance Program; however, the water and wastewater utility discounts have not been reviewed since 1992.Brief descriptions ofthe two programs are provided here: The Low -Income Energy Assistance Program. This program applies to the electric portion of the City's utility bill. Under this program, a household with income at or below 65% of the State Median Income /SK4|\ can receive a coedit of5096 for low-income senior and low-income disabled persons for up to six months during the winter months, and to all other low-income households for up to three months. Households can receive a $300 maximum credit applied to the electric portion of the utility bill each year they apply. This program is administered under City Administrative Po|icy2O17.O8.O1. The Senior and Disabled Year -Round Discount Program. This program currently applies toall public works (water, wastewater, transportation and storm drain) utility fees and electric; however, as originally written in Resolution 92-22, the discount was intended to only be applied to water, sewer, and electric. Under this program, a household can receive a 20% or 30% discount indefinitely; note however, that if the qualifying person moves out of the residence, the discount is removed. Proof ofeligibility is required by the City, but in practicality the City lacks human resources to verify eligibility of every account every year. One-time emergency assistance of up to $100 in a calendar year may also be granted to a utility customer. This memorandum reviews low-income utility bill assistance programs at other Oregon cities to recommend potential modifications to the City's current Senior and Senior Disabled Low Income Year - Round Discount Program, specifically for the water and wastewater utilities. Potential modifications to Resolution 92-22 are provided. The potential modifications would eliminate the discount currently being provided to the same customers' storm drain and transportation utility fees. DRAFT Page 2of4 HEC conducted a survey of comparison low-income household utilities bill assistance programs. Exhibit A summarizes the programs of surveyed cities. Some cities only apply the discount to water or sewer or both water and sewer, some also provide the discount tostornovvater, garbage, and other City services. Of the 18 cities included in the survey, only Ashland and Klamath Falls limit low-income assistance programs to seniors. Four of the cities only provide limited relief (once or twice per year), rather than continual monthly bill discounts. Senior Discounts. Ashland only provides bill assistance to Seniors who are low-income and age 65+ years. Klamath Falls also requires the low-income household to have a qualifying senior for a discount which is given as a once -per -year rebate, but most of the cities of similar size to Ashland (population between 15,008 and 40,000) that have low-income assistance programs for water and wastewater utilities do not restrict their program to Seniors. Of the 9 comparably -sized cities, 7 do not have an age or other qualifying condition (Hermiston, Sherwood, Milwaukie, Newberg, West Linn, and Redmond). Troutdale requires the low-income household to have a Senior or a Disabled person living in the household (the Disabled person in the household does not have to be a Senior). Troutdale's two qualifying discounts are only applicable to the sewer bill (Troutdale does also provide water and stornnvvaterservices\. Of the larger sized cities, Albany; which has a population of about 57,000 people, provides a low- income senior discount. Albany defines a senior citizen as age 60+, rather than 65+. Bend and Salem also provide low-income senior discounts. Elderly persons in Salem must be aged at least 60 years to qualify for discounts to their water, sewer, and garbage bills, Elderly persons in Bend must be at least 62 years old, and the bill assistance program is only for sewer and storm drain services (Bend does also provide water service\. Disabled Person Discounts. Ashland only provides a disabled person discount if the disabled person is at least 60 and qualifies as low income. As already mentioned, Troutdale provides a discount for disabled persons regardless of age, provided they qualify as low income. Salem and Bend, larger sized cities, have disabled persons programs that provide the same discount as their elderly citizens programs do, but the disabled person need not be a senior (they must qualify as low income). Portland's program applies to water, sewer, and storm drain. Salem's program applies to water, sewer, and garbage services. The City of Albany also provides discounted bills to disabled persons provided they qualify as low income, also independent of their age, on their water bills and City services fees (but not their sewer and stormwater fees). Other Discounts. Newberg offers an active military and veteran discount in addition to a low-income discount (they are mutually exclusive). Amount mfAssistance Offered. The amount of financial assistance offered varies from city to city.Most of the surveyed cities provide their assistance as a percentage discount off the total bill asAshland does; however, some restrict the percentage discount to the base charges only or waive the base charge and apercentage ofthe use charge. Prepared byHEC DRAFT Page ]of4 January 16,J0Z3 Emergency Bill Assistance. Ashland offers a one-time $100 credit per year per account, subject to funds avoi|abi|ity. Similar toAshland's Emergency Credit program, K4i|v/aukie also provides temporary assistance with limited funds, but no other city ofsimilar size provides emergency water and wastewater utility bill assistance. W1i|vvaukie offers a noaxinnunn of$40Oevery 12 months. Of the 7 larger sized cities (population greater than 40,000), Bend, Salem, and Portland also offer some form of temporary assistance. Bend offers a one-time credit up to $150 for households not already eligible for other discounts on their utilities bill. Portland and Salem both provide $500 one-time discounts each year for households with ademonstrated need. Based on the survey of low-income assistance programs run by other Oregon cities, Ashland should consider the following, not listed in any particular order, and not exclusively of each other: � Removing the restriction ofthe program toSeniors only and expanding the program toall low- income householdsvvkhperccntaKeofassisLanceprVvdedonay|idingsca|evvithhouseho|d income levels. If changed in this way, the need to prove being elderly or disabled is removed. � Allowing low-income disabled persons to receive the same assistance as a low-income Senior Citizen (removing the 60 years old age restriction currently in place for disabled persons). a Reducing the Seniors eligibility criteria from 65 to 60 or 62. * Keeping the one-time Emergency Assistance program as it is. It is recommended that the City repeal Resolution 92-2 and adopt two separate resolutions for utility bill assistance programs for 1) electric, and 2) water and sewer. If the City wanted to continue providing discounts for storm drain and transportation utility fees, which are currently provided but not authorized by resolution 92-2, then an additional new resolution would be necessary for those utility fee discounts. City Municipal Code will also need to be amended to reflect City Council decisions on utility bill assistance programs. Municipal Code It is recommended that, at a minimum, the following changes be made to the Municipal Code (deletions shown in strikee-it and additions shown in red) to reflect the current low-income assistance program. While no changes are recommended to the Municipal Code for special hardship cases (14.02.015.D), staff has noted that the City does not have documentation of any applications for special hardship consideration inthe past l2years. Prepared byHEC DRAFT Page 4of4 January 16,2O23 14.02.015 Senior Citizen Discount A. To qualify for a 30% senior citizen discount under the utilities bill assistance program, a person must be 65 years of age or disabled and 60 years of age and the total household income shall not exceed the Federal Community Services Administration poverty guidelines. B. To qualify for a 20% senior citizen discount under the utilities bill assistance program, a person must be 65 years of age or disabled and 60 years of age and the total household income shall be between 100% and 125% of the Federal Community Services Administration poverty guidelines. �LC.TheseniordtzendiscountshaUonk/app|y1othcapp|icsnt'sresidenos. C. D. A senior citizen desiring to receive a utilities bill discount must submit an initial application to the City on forms provided by the City. In order to maintain continuous qualification for such discount, the senior citizen shall, not later than June 30 of each ensuing year, file an annual application for renewal on forms provided by the City. The City Manager or the City Manager's designee shall determine whether the applicant meets the qualifications and requirements ofthe City. [}.E.|nspedalhardshipcases,aconnrnitteeoftvo/2\CityCound|nnernbersandtheSenior Program Director may recommend that the City Manager grant exemptions to the foregoing income limitations where the circumstances justify such exemptions. (Ord. 3192 § 107, amended, 11/l7/IU2U;Ord. 2673,amended, l992). 14.O4'03QWater rate schedules The water rate schedules and utilities bill assistance discounts shall beestablished 14.00035 Sewer User Charges The sewer Rate Schedules and seRier diseeuRt Fate utilities bill assistance discounts shall be established 14'16.030 Electric Rate Schedules The electric rate schedules and utilities bill assistance discounts shall be established by Resolution of Prepared byHE[ FSTMETWi iL r E E 0 C: 0 > CS 4f, v > w -0 0 >- (]J E -a > E E Ln vE V) (,U .2 0 -0 v (v Ln w 0 > 2 E U 00 L -a U a w u ELL n O u E E x, .2 0 c O CL CL 0 o 0 -j u CL O. m m E ro F- E3 0 1� 0 E ro r-4 C _ m un 0 (D ro U u c ai m m _0 0 C 0 E m C: 0 aj (D Cu -0 0 -0 m F". -E M LO 0 U'l u r— 0 ti c: 0 =3 0 > 72 m w w o E -I E 0 C) E co C 2to A 0 EL' > E = 0 wu 0ro u o D - C) 1-4 tU, m S LL u S 3 0 'Fu E -6 CU >- E U 0 U 0 Ob O a) c u 0 >, 0 O U m 0: O E v -0 M a) E w > 2 cO.j5 vOi 'U c 0 D CL -14 o m JO aj . a) 7, m < E D E W U :3 QJ 0 = > . >- 0 m bD W -0 _0 0) a) > U a) c u L n>, E a) 3 m -0 a-0 :u) —M- E -o a) -0 — u E—oEal - .E 0 u 0 u >, u (U 0 0 C > i --j u m M: E V) M M WN P .- Qj aj E O E 0 0 u cu ro 2 > aj as CE c 0 Irl CL U 0 E m on 0 a. 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Introduction I z.z Purpose of the Study 1 1.2 Methodology z -1.3 Organization of the Report 2 o- Summary qFFindings 4 2.1 Major Findings 4 2.2 Key Assumptions 6 2.3 Calculated Rates 7 2.4 Rate Impacts 10 3' Current Conditions zz 3.1 City Water System zz 3.2 Customer Base 14 3.3 The Water Fund 15 4- Financial Projections 21 4.1 Revenue Requirement 21 4.2 Talent Irrigation District Non -Potable Irrigation Service 25 4.3 Meter Replacement Program 27 �- Cost ofService Analysis 29 5.1 Functional Cost Allocation 29 5.2 Rate Design 30 5.3 Water Demand Projection 37 5.4 Calculated Rates 38 5.5 Projected Cash Flow and Fund Balance 42 6- Impacts mfNew Rate Structure 44 6.1 Bill Impacts 44 6.2 8fFon1ahiIitVTest 44 6.3 Comparison ofWater Rates 45 City ofAshland Water Rates Cost of Service Study March 3.a2oi6 Page 1 Calculated Water Rates through 2022 8 2 Calculated Typical Home Bill for 1,00o Cubic Feet g 3 Historical Potable Water Production 11 4 Historical Water Consumption 13 5 City Population Growth 14 6 Current Water Rates 17 7 Water System Development Charges 18 8 Forest Resiliency Program Fee Schedule 19 g Historical Water Fund Balance 20 10 Summary of 10-Year CIP for Existing Customers 22 11 Estimated Water System Assets Depreciation 23 12 Projected Revenue Requirement 24 13 Calculated TID Use Rates for Fiscal Year 2015-2016 26 14 TID Revenue Offset 27 15 Estimated Meter Replacement Fee Program Costs 28 16 Calculated Meter Replacement Fees 28 17 Allocation of Revenue Requirement to Cost Functions 30 18 Calculation of Customer Service Costs per Account 31 19 Calculation of Monthly Service Charge by Meter Size 32 20 Estimated Meter Equivalent Units 32 21 Customer Usage Characteristics 34 22 Projected Potable Water Demand 37 23 Calculated Use Charges per Cubic Foot 39 24 Summary of Calculated Water Rates 40 25 Cost Allocation by Customer Type 41 26 Projected Operating Fund Cash Flow 42 27 Projected Water Fund Balance 43 28 Afforda bi I ity Test 45 29 Calculated Typical Home Bill for 1,00o Cubic Feet 46 City of Ashland Water Rates Cost of Service Study March 15, 2o3.6 Page ii LIST OF FIGURES z a 3 4 5 6 7 8 9 10 zz 12 13 14 Cost OfService Redistribution ofFY2o15-16Revenue Requirement Typical Monthly Bill for 3/4'Single Family Home Annual Water Consumption 6vMonth Water Use bvCustomer Type Typical Annual Sources V[Water Fund Revenue Water Sales byCustomer Type Typical Annual Water Fund Expenses Monthly Water Use byCustomer Type Residential Water Use byTier Non -Residential Water Use byTier (current rate structure) Commercial Water Use byTier (proposed rate structure) Redistribution ofCosts toCustomer Types Water Fund Balance Comparison nfSingle Family Monthly Water Bill 4 9 12 15 -16 d5 zg B 35 �- � �- � �� 41 43 46 City of Ashland Water Rates Cost of Service Study March:L5, 2oi6 Page iii Section i: INTRODUCTION The City of Ashland (City) contracted with Hansford Economic Consulting (HEC) to perform a Water Rates Cost of Service Study (Study). The purpose of this Study is two -fold: (1) to ensure that different customer types pay their fair share of water system costs by performing a cost of service analysis and (2) to collect sufficient revenues to adequately fund the water system in a safe manner; providing the residents and businesses ofthe City with aclean, safe and reliable potable water system that meets State and Federal requirements, byprojecting revenueneeds and determining supporting rate schedule. This report provides an explanation and justification of redistribution of water system costs to customer types and calculated water rates through fiscal year ending 2022. This report has been prepared with the following principles in mind: (1) Revenues derived from waterfees should not exceed the funds required to provide the water service. (2) Revenues derived from water fees should not be used for any purpose other than that for which the fees were imposed. (3) Customer water bills should reflect the customer's fair share (proportional) cost of service to provide water to the customer. (4) Water fees should only be charged to customers using the service or with the ability to use the service at any time. Water fees should not be charged based on potential or future use ofwater. The City conducted a Water Master Plan that was completed in 2012. The Water Master Plan called for several large capital improvement projects and the need to raise water rates to plan for those project costs.TheOtyraisedvvaLernaLesju|y2Ol],2Ol4,and2U15by1UY6eaohyear asaresult ofthe findings ofthe Water Master Plan. Since the 2O12 completion ofthe Water Master Plan the region has experienced adrought. Projected water demands have not been realized, which have resulted in (a) less revenue than anticipated, and (b) greater expenditure in earlier years to complete the Talent -Ashland - Phoenix (TAP) projecttoaugnnentvvatersupp|ies.Thenecentvvaternateincneasesvverebased on percentage increases needed from water sales and not based on cost of service. The City wanted to assess whether customers are paying their proportional share of costs of the water system (not subsidizing among customer types). The City also wanted to ensure that sufficient revenues would beavailable 10pay for projects identifiedintheMasLerP|an,asvvc>|asother projects identified since completion of the 2012 Master Plan. City of Ashland Water Rates Cost of Service Study March 1.5, 2o:i6 Page i Given decreased water demand in recent years the City also anticipated that water rates would have toincrease through fiscal year 2O2Zornecessary capital projects (noostpardcu|aMyanevv vvotertnenLnnentplant) would have tobepostponed. 1.2 METHODOLOGY This report was prepared using the principles established by the American Water Works Association . The A\NVVA"Principles ofWater Rates, Fees, and Charges: Manual of Water Supply Practices M1" (the "M1 Manual") establishes commonly accepted professional standards for cost of service studies. The M1 Manual general principles of rate structure design and the objectives ofthe Study are described below. Accordin@tothe K4IManual, the first step inthe raLernaking analysis is10determine the adequate and appropriate funding of a utility. This is referred to as the "revenue requirements" analysis. This analysis considers the short-term and long-term service objectives ofthe utility over a given planning horizon, including capital facilities and system operations and maintenance, to determine the adequacy of a utility's existing rates to recover its costs. A number of factors may affect these projections, including the number of customers served, water -use trends, nonrecurring sales, weather, conservation, use restrictions, inflation, interest rates, wholesale contracts, water rights agreements, and other changes in operating and economic conditions. After determining a utility's revenue requirements, a utility's next step is determining the cost ofservice. Utilizing apublic agency's approved budget, financial reports, operating data, and capital improvement plans, a rate study categorizes (functionalizes) the costs, expenses, and assets of the water system among major operating functions to determine the cost of service. After the assets and the costs of operating those assets are properly categorized by function, theratestudyaUocatesthose"functiuna|iaedcusts"tothevahouscustonnerdasaes(e.g, single-family residential, multi -family residential and commercial) by determining the characteristics of those classes and the contribution of each to incurred costs such as peaking factors, different delivery costs, service characteristics and demand patterns. Rate design is the final part of the M1 Manual's ratemaking procedure. The revenue requirement and cost of service analyses are used to determine appropriate rates for each customer class. 1-3 ORGANIZATION OFTHE REPORT The Study is presented in six sections. Following this introduction, Section Iprovides asummary ofmajor assunnohnnsandfindinOsof the study. Section 3 provides information on the Cib/swater system including historical water production and consumption, customer base, historical City growth, and health of the water enterprise fund. Section 4 projects revenue needs, "the revenue requirement", through fiscal year 2021-22, calculates costs associated with City Talent Irrigation District (TID) non -potable water service, and determines a meter replacement program and its associated costs. City of Ashland Water Rates Cost of Service Study March:L5, 2o:16 Page 2 Section 5presents the cost ofservice analysis, water demand projections, anddetai|sof1he calculated water rates. The impacts of the new water rate structure are presented in Section G, including acomparison nfbills with other Oregon water providers. Appendix Ain cludes support tables forth e water rates an a lysis. City of Ashland Water Rates Cost of Service Study March is, 203.6 Page 3 Sect~on 2: SUMMARY OF FINDINGS Cost of Service. The cost of service analysis finds that commercial, institutional, and non - potable metered irrigation customers are currently payingrnorethantheirpropo|tiona|share ofwater system costs. Potable irrigation and non -potable unnnetened irrigation customers are paying less than their proportional share of water system costs. This is illustrated in Figure 1 below. Customer types with negative revenue requirement in the illustration should be paying less as a customer group than they are currently paying. Customer types with positive revenue requirement should be paying more as a customer group than they are currently paying, Although residential shows an underpayment of $42,111, this is a very minimal difference, as it isonly 1Y6ofthe current cost (see Table 25\.Axaresult ofthe cost ofservice analysis (see Section 5) the rates from fiscal year 2016-17 onwards shift costs between customertypes. Figure 1 Cost of Service Redistribution of Fiscal Year 2015-16 Revenue Requirement / / � � Non -Potable | | unmcteod�5Jas � | � � | / Non -Potable Metered, | ' �3498N ' � / � � . . ' Potable Irrigation, g9s7S5 | R/c5ua�s$�Z74 � � ($150,000) ($100,000) <galonn $` $sK000 $100,000 $150,000 Costs are allocated to potable customers based on their potential to use system capacity and their water usage characteristics. Costs are allocated tonon-potable customers based on typical annual water usage for metered customers and property acreage for unmetered customers. City of Ashland Water Rates Cost of Service Study March 15, 2016 Page 4 Rate Structure Modifications. The current rate structure is proposed to be modified to better reflect customer usage patterns and cost of service, ensure accuracy for account billing, and encourage water use efficiency. w Flat Charges (All Customers). Currently bills comprise one flat charge —the monthly service charge. Underthe new rate structure bills would continue to have one flat charge which would include the service charge, but it would also include a customer charge for costs associated with administration ofthe water system and provision ofcustomer service. The customer charge would be the same every month, and the same for every account (accounts with more than one meter only charged once). The service charge would continue to cover the costs of services and meters and a portion of system capacity costs; generally, the costs to be able to provide water service regardless of the amount of water used during agiven period. The service charge would continue 10apply toeach meter atthe property. Service Meter Ratios Change. The service charge meter ratios were adjusted (o AWWA meter ratios established using safe maximum operating capacities for meters in the M1 Manual. These meter ratios more accurately capture the capacity of the water service to each customer than the current meter ratios. As a result of this change the larger meter sizes would pay more per month than under the current meter ratios. For 1" meter services thonoeternatiovvassetequa|Loa3/4"noetertoensunethathouseho\dsrequiredtoupsize forfire code requirements are not penalized (this methodologywas also used to establish the Forest Resiliency Program Fee in May, 2015 and is being used with greater frequency in cities in other Western U.S. states)'. * Commercial Customers. Commercial customers are separated into commercial, institutional, and potable water irrigation customers. Institutional customers include the current government/municipal customers. This change is made to better reflect the different customer water demand patterns associated with non-residential activity. The tiers for the new customer categories are also different from the current tiers. The rate structure is intended to fit typical customer usage patterns and promote water use efficiency as well as proportionately allocate the cost of service to those who place the greatest demands on the system. The table on the following page shows proposed modifications to the non-residential customer tiers. Note that non-residential irrigation water would be charged at on peak and off peak rates. The purpose of seasonal rates for irrigation is to reduce the cost of irrigation water during the spring, fall, and winter months when water supply is not a concern and increase the cost of irrigation water when supplies may be impacted by drought. I Source: HEC experience working with cities in California. City of Ashland Water Rates Cost of Service Study March :L5, 2o16 Page 5 Cubic Feet CURRENT for ALL NON-RESIDENTIAL < 50,000 >50,000 NEW No tier— uniform rate INSTITUTIONAL IRRIGATION No tier —seasonal rates Residential Customers. There is no change proposed for residential tiers. Residential customers with separate potable irrigation meters (about 5% of all potable irrigation customers) would pay a service charge each month for each meter but only one customer charge for the account each month. Metered potable irrigation water would be added to the domestic water for calculation of use charges. As the City is converting to new water billing software in 2016there may bea transition period during which time residential potable irrigation water is billed starting at the Tier 2 rate for residential water. Billing would begin at Tier 2 because average water use is 460 cubic feet per month for indoor use (see Table 21) indicating that a typical home would be using some irrigation water in Tier 2. Once the new billing software is in place the irrigation metered use would be added to domestic metered use. Potable Water Irrigation Customers. All potable irrigation customers (commercial and residential) would be billed the flat monthly charges (service charge and customer charge) year-round rather than only in the months that water is taken as is current practice. Potable irrigation customers would be treated the same as all other potable water customers in this regard, reflecting the ability for the customer to take water at any time of year. This shift from current billing practice may cause some potable irrigation customers to want to discontinue having a separate irrigation meter. This is an option for residential potable irrigation z Implementation. The new rate structure isassumed to be in effect beginningJuly inning]u|yl,2O16and to be increased each July I thereafter. The rate increases would coincide with the fiscal year as is current practice. Water QPProjects are funded through rates, connection fees, and City borrowing. Rates and City borrowing will be used to finance capital improvements that benefit existing customers. Connection fees will only be used for projects that are related to new growth in the City, Developer contributions maybe required for certain facilities. |Lisassumed that the City will obtain Safe Drinking Water State Revolving Fund (DWSRF) money to finance construction of the new water treatment plant and Crowson ||reservoir. |f0VV3RFmoney isnot obtained the 2 This is not an option for non-residential customers because of sewer billing methodology. City of Ashland Water Rates Cost of Service Study March is, 2o:i6 Page 6 revenue requirement would increase (assuming all other costs do not change) and water rates would have to increase beyond those calculated in this report. System rehabilitation costs are included in rates. Rates should include depreciation of existing assets sothat funds are accumulated and available for replacement ofassets on atimely basis, preferably paid for with cash. This Study uses estimated depreciation costs to collect for system rehabilitation. Rate money collected for system rehabilitation is used to fund capital improvement projects for existing customers. In some years system rehabilitation revenue may exceed capital improvement costs. In these years the excess revenue is added to reserves for future rehabilitation projects. TAP Water Costs. The TAP emergency water pipeline was recently completed. This treated water source will be utilized by the City in late summer or early fall, as needed, to augment supplies. For purposes of the Study it is assumed that water is taken for 31 days each year. The current contract rate is 68 cents per 1,000 gallons of water. In the model it is assumed the cost increases to75cents per 1,000 gallons in2Ol6and at3.596per year each yeorthereafter. 2.3 CALCULATED RATES The Study provides a basis for adoption of new rates beginning July 1, 2016. By modifying the rate structure the City will generate sufficient revenue to continue to meet its bond covenants, build healthy reserve, fund necessary capital improvements, and fully fund water operations. The revenue requirement, which is the amount of money to be raised by rates, iscalculated to increase by the following percentages: . The revenue requirement percentage increases for the next 3years match those calculated in the 2012 Water Master Plan; however, with the shift in costs between customer categories not all customer categories will experience the same percentage increases. Table 1 on the following page shows calculated water rates through 2022 for all customer categories and compares the calculated rates with the current rate structure. Table 2 on page 9 shows the calculated bill for a single family home using 1,000 cubic feet of water in a billing cycle. Atypical residential bill would increase from $51.72in$54.35July 1, 2016. City of Ashland Water Rates Cost of Service Study March 15, 2016 Page 7 Table I Calculated Water Rates through 2022 Rate Component 7/1/2015 7/1/2016 Rates Implementation 7/1/2017 71112018 7/1/2019 7/1/2020 7/1/2021 Monthly Customer Charge per Bill n.a. $11,74 $12.19 $12.54 $12.89 $13.25 $13.64 Monthly Service Charge per Meter [1] 3/4" and Fire Guards $23.50 $13.75 $14.27 $14.68 $15.10 $15.52 $15.98 11. $46.99 $14.34 $14.88 $15.31 $1535 $16,19 $16.66 1.5.1 $66.99 $65.61 $68.13 $70.07 $72.08 $74.10 $76.24 2" $88.24 $104.27 $108.28 $111.36 $114.55 $117.76 $121.16 3" $194.50 $209.08 $217.12 $223.30 $229.69 $236.13 $242.9S 4" $282.07 $331.60 $344.32 $354.13 $364.29 $374.52 $38S.35 6" $528.92 $652.47 $677.56 $696.84 $716.81 $736.90 $758.18 8" $881.49 $1,034.38 $1,074.23 $1,104.77 $1,136.39 $1,168.21 $1,201.93 USE CHARGES FOR POTABLE WATER Residential [2] per month, per unit 0 to 300 cf $0.0243 $0.0246 $0.0256 $0.0263 %0271 $0.0278 $0.0287 301 to 1,000 cf $0.0299 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 1001 to 2,500 cf $0.0400 $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 >2,500cf (2,501- 3,600cfJune to Sept) $0.0517 $0.0537 $0.0559 $0.0575 $0.0592 $0,0609 $0.0627 >3,600cf (June to Sept only) $0.0673 $0.0691 $0.0719 $0.0739 $0.0761 $0.0783 $0.0806 Non -Residential per month, per meter 0-50,000 cf $0.0343 n.a. n.a. n.a. n.a. n.a. n.a. > 50,000 cf $0.0353 n.a. n.a. n.a. n.a. n.a. n.a. Commercial <2" meter 0-2,500 cf n.a. $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.03S8 > 2,500 cf n.a. $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 Commercial 2"+ meter 0- 15, 000 cf n.a. $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 > 15,000 CIF n.a. $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 Insitutional n.a. $0.0294 $0.0305 $0.0314 $0.0323 $0.0333 $0,0342 Commercial and Institutional Irrigation October to May n.a. June to September n.a. $0.0331 $0.0449 $0.0345 $0.0469 $0.0356 $0.0483 $0.0367 $0.0498 $0.0378 $0.0513 $0.0390 $0.0530 Bulk Water [3] same as non-res. $0.0338 $0.0351 $0.0362 $0.0372 %0383 $0.0394 Fire Protection Service [4] Meter Replacement Charge n.a. $1.18 $1.22 $1.26 $1.30 $1.34 $1.38 Service Charge $23.50 $13.75 $14.27 $14.68 $15.10 $15.52 $15.98 Usage Charges same as non-res. $0.0338 $0.0351 $0.0362 $0.0372 $0.0383 $0.0394 TID Non -Potable Water per irrigation season, per acre or portion of Unmetered Service $170.01 $183.11 $196.20 $209.30 $222.40 $235.50 $248.59 Metered Service: Service Charge per meter as above n.a. n.a, ma. n.a. n.a. n.a. Meter Replacement Fee [51 none per meter as above Water Consumption per c.f. $0.0055 $0.0022 $0.0023 $0.0024 $0.0025 $0.0026 $0.0026 Outside City Limits All rates and charges for water service provided outside the city limits will be 1.5 times the inside city rates and charges. Source: City of Ashland. [1] Irrigation customers currently only billed charges when the service takes water. Effective July 1, 2016 these customers will be charged the flat monthly fees every month regardless of whether water is taken. [2] For residential customers with separate irrigation meters the metered irrigation water is added to the domestic water use. [3] For temporary water provided through a hulk meter on afire hydrant. [4] This rate shall apply to a I I water taken through fire protection services or fire guards, [5] Due once per year on first TID non -potable water bi I I. City of Ashland Water Rates Cost of Service Study March is, 203.6 Page 8 Table 2 Calculated Typical Home Bill for 1,000 Cubic Feet Fiscal Year Ending Residential Charges 2016 2017 2018 2019 2020 2021 2022 current 1 2 3 4 5 6 Flat Charges Customer Charge $11.74 $12.19 $12.54 $12.89 $13.25 $13.64 Service Charge $23.50 $13.75 $14.27 $14.68 $15.10 $15.52 $15.98 Total Flat Charges $23.50 $25.48 $26.46 $27.21 $27.99 $28.78 $29.61 Use Charges Tier 1 per cu. ft. $0.0243 $0.0246 $0.0256 $0.0263 $0.0271 $0.0278 $0.0287 Tier 2 per cu. ft. $0.0299 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 Tier 1 Charges (300 cu ft) $7.29 $7.37 $7.67 $7.89 $8.12 $8.35 $8.60 Tier 2 Charges (700 cu ft) $20.93 $21.50 $22.36 $23.01 $23.68 $24.35 $25.07 Total Use Charges $28.22 $28.87 $30.02 $30.89 $31.80 $32.70 $33.67 Bill for 3/4" using 1,000 cu. ft. $51.72 $54.35 $56.48 $58.11 $59.79 $61.48 $63.28 Percentage Increase 5% 4% 3% 3% 3% 3% 6T.InTM:19-4 Figure 2 shows the calculated bill for a single family home with a 3/4" meter using 1,000 cubic feet in the cost of service study compared to the master plan projections through 2022. Bills may be lower or higher than shown depending on actual quantity of water used. Figure 2 Typical Monthly Bill for 3/4" Single Family Home $68 -2 Cost of Service Study 2v, Master Plan Projection $66 $63.60 $64 $61.78 $61.4 $62 $59.87 $59. $60 $58.17 $58 $56.4C - $56.0/ $56 X7 $54.3§00 $54 $ gig $51.7251.96 $52 ytu-o W 20 $50 N. fi 101 1 n 2016 2017 2018 2019 2020 2021 $65.52 9M City of Ashland Water Rates Cost of Service Study March :i5,2oi6 Page 9 2-4 RATE IMPACTS Residential. I n 2016 residential water bi I Is would experience increases of about 5% rather than the full 8% increase in revenue requirement because of the cost redistribution between customers. The bills for residential customers will remain affordable per the Oregon Drinking Water State Revolving Fund program definition (see Section 6\. Commercial. Many commercial water bills would decrease under the new rate structure in 2016. The red ucti on in bills is a I so due to the reallocation of costs under the cost of service analysis. Commercial customers with 2" and larger meters would pay a larger portion of their bill as a flat monthly charge due tothe change in service charge meter ratios to AVVWAsafe maximum operating capacities for meters. Larger water meter commercial customers would have higher bills inZO16. Institutional. institutional customers would experience a slight increase in bills in the winter months and a decrease in bills inthe summer months. Institutional customers have o relatively flat demand throughout the year, with aslight peak inthe spring months before the irrigation season begins, so1hechangetoaunifonnusecharge(thesarnenateper1,8OOga||onsis charged regardless oftotal water use) isappropriate. Potable Irrigation. DuringthepeaksunnnnernnonthspotaNeinigationbiUsvvou|dinoreasein 201Gdue io cost redistribution. The new rate design is intended to curb irrigation water use during the peak use months by having a higher "on peak" rate per 1,000 gallons June through September. During off-peak months (Octoberthrough April) water bills would increase if no water was taken. This reflects billing the flat monthly charges regardless of whether water is used or not. For accounts using water during the off-peak, irrigation bills would decrease. The off-peak potable irrigation water rate encourages planting in spring and fall months when water supply isnot aconcern. lOD Non -Potable Water Irrigation. The unnneiened oustonooe/ rate would increase from $17O.Olper acre to$183.1Iper acre July 1,2Ol6esoresult ofcost redistribution. The T|D metered customer rate would decrease from $0.0055 per cubic foot to $0.0022 per cubic foot July 1, 2016. In addition, TID metered customers would pay a meter replacement fee. City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page io 3'1 CITY WATER SYSTEM The City operates a surface water supply system. The main water supply is from Ash land Creek and reservoir. This water is treated at a City owned and operated water treatment plant. Treated water enters the distribution system from this point and either flows directly to customers or to one of 4 reservoirs (water tanks) I ocated in the City. In 2014the TAP water supply was completed to Ashland. The City can take up to 2.13 million gallons per day (mgd) in emergency water supplies from the Medford Water Commission. This water source will be used in late summer orearly fall as needed to augment supplies. In addition to these two sources of treated water the City also obtains water from the Talent Irrigation District (TID). Non -potable TID water is supplied to irrigation customers located along the TID canal. Under terms of the contracts with TID the City may also use the water for potable water demands. When used for potable needs, water from the canal is diverted to the Ashland Creek water treatment plant where it is treated and enters the City's potable water distribution system. Potab I e water production averages 46 mi I I ion gallons per month during the winter months (December through March). Peak month production is July or August when prod ucti on averages 152 million gallons per month. The highest month production in the past 6 years was 180 million gallons inJuly 2OU9. Table 3showm historical potable water production. Table Historical Potable Water Production Month CalendarYear Avg.Amval Pcmem Year 2009 200 2011 2012 208 2014 Water Delivery ofDelivery (MG) by Month Figures in Millions ofGallons January 51.86 48.16 48.88 48.07 42.97 42.38 46.92 S% February 44.48 41J7 44.11 44.96 36.98 37.36 41.62 4% March 48.71 47.54 47.18 47,65 42.45 41.71 45.87 5% April 0.90 48.40 48.70 53.24 54.76 5641 54.40 5% May 10577 5931 60.78 90.64 90.40 97.70 84.11 8% June 124.39 88,51 88.77 109J5 117.26 119.26 107.99 11% July 180.38 157.48 135.27 133.40 170.48 137.17 152.36 15% August 167.64 158.29 152.00 149.87 155.29 13138 152.41 15% September 116.02 114.52 131.36 124.35 114.30 104.15 117.45 zz% October 69.73 86.43 82.60 81.33 99.24 83.61 83.83 8% November 48.97 51.89 54.13 45.01 81.63 55.40 56.17 8& December 51.26 47.26 49.0 40.50 52.97 51.01 48.77 5% Total 1,073.32 949.57 843.42 968.78 1,058.79 957.53 A 991.90 1000/0 Base Monthly Flow (Dec Mar) B 45.79 Average Annual Base Flow C=o*z2 549.53 55% Average Annual Additional Flow u=A'[ 442s7 45% City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page ii Water production in clu des Ash land Creek and TAP water supplies. Annual base water production is the winter monthly average production multiplied by 12. Base water production comprises S5% of an nua I production. Add itiona I flow to meet demands that pickup during the spring, summer, and fall months comprises 45% of annual production. Historical water consumption is shown in Table 4. Due to bi Ili ngcycles, consumption by month in theta ble reflects the amount of water billed each month which is not exactly the same as tota I water used in each month; however, the pattern of use is very Sim i I a r with peak month usage typica||yinJuly orAugust. Figure 3shows the season a|pattern ofwater con sum ption. Figure 3 Annual Water Consumption by Month 18,000,000 16,000,000 - 14,000,000ME 121000,000 ' � ^� 10,00q000 � "p"°p,°mg 6,000,000 4,000 000 21000,008 0 Table 4compares potable water consumption and production. The figures show that about 4.5% of water produced is unbilled or unaccounted for. This figure is considered healthy for a The total annual water usage billed increased 13% between 2010 and 2013 then fell back to almost the same level as 2010 in 2014. The decrease in water use between 2013 and 2014 is probably largely due tothe drought. Oftentimes adecrease such osthis can besustained for many years, particularly if followed by another drought year, as has been the case in 2015. Referred to as'demand hardening/ customers become accustomed to using less water. During the drought years they have retrofitted fixtures and reset irrigation clocks or changed out landscaping toreduce their water use. s"Most states have regulatory policies that set acceptable losses from public water system distribution systemsatamaximumofbetweenl0and15percentofthewa1erproducedbythepub|icwatersystem." paDevii of 'Control and Mitigation ofDrinking Water Losses in Distribution Systems', EPA Nnvember2O1O publication. City of Ashland Water Rates Cost of Service Study March:L5, 2oi6 Page 22 Table 4 Historical Water Consumption Month 2010 2011 Calendar Year 2012 2013 2014 Consumption Figures in Cubic Feet January 5,688,024 6,377,053 5,822,654 6,398,479 5,698,647 February 5,099,644 5,088,576 5,264,148 5,106,362 5,903,155 March 5,997,480 5,766,127 6,218,217 6,620,823 5,395,848 April 6,277,962 5,688,600 5,835,945 6,921,512 6,737,313 May 6,175,787 6,517,554 9,374,536 11,570,159 9,004,008 June 10,178, 300 10,104, 520 13, 707, 604 15, 747, 969 13, 874,124 July 15,731,277 14,807,946 17,927,282 20,205,591 16,364,166 August 20,686,522 18,804,858 20,516,243 21,154,339 16,915,748 September 17, 851, 518 19, 930, 790 17, 585, 640 16, 960, 380 14, 895,165 October 11,796,560 13,546,376 16,327,008 9,331,983 12,225,379 November 7,824,931 7,349,883 7,001,274 7,667,451 7,481,362 December 5,685,693 6,519,096 6,151,560 6,465,232 7,819,658 Total Consumption (Cu. Ft.) 118,993,698 120,501,379 131,732,111 134,150,280 122,314,573 Total Consumption (Gallons) 890,072,861 901,350,315 985,356,190 1,003,444,094 914,913,006 Millions of Gallons Billed 890 901 985 1,003 915 Millions of Gallons Produced [1] 950 943 969 1,059 958 Production less Consumption 59 42 -17 55 43 Production as % of Billing 6.3% 4.5% -1.7% 5.21 4.5% Source: City of Ashland. [1] Includes TAP water of 6.3 MG in 2014. Production figures for 2012 unreliable due to calibration difficulties at the plant In selecting abase year as a platform for water use from which to project water demand over the Study time period it would be best to either use the average of the last five years or the most recent year of water use. This Study projects water use based on the most recent year of water use (2014). Unlike the Water Master Plan, in which the core objective is to ensure sufficient capacity is available for a 'worst case' growth in demand scenario (maximum likely use), this Study needs to ensure sufficient revenue is available in a 'best case' growth in demand scenario under which there are minimum increases in water use. The average annual water use of the last 5 years was 939 million gallons. The Study uses the 2014 use of 915 million gallons as the base for projecting water demand. Over the same five-year period (2010-2014) the population of Ashland increased very slightly from an estimate of 20,100 to 20,300. Gallons of water produced per capita per day has remained flat at 129. Ashland's population growth and gallons per capita per day is shown in Table S. City of Ashland Water Rates Cost of Service Study March is, 2os6 Page 13 Table City Population Growth Water Certified Production Population Annual Annua|Y6 Gallons per Year Estimate Change Change Capita per Day 1-]u| 2000 19,00 200 19,770 160 0.8% 2002 20,130 360 1.896 3003 20,430 300 1.5% 2084 20,590 160 8.896 2005 20,880 290 1.4% 160 2006 21430 550 2.6% 161 2007 21,630 280 8.90 154 2008 21,485 -145 -0.796 153 2009 21505 20 0.1Y6 137 2010 20,095 1,410 -6.6% 129 2011 20'255 160 0.8% 1.28 2012 20'325 70 0.396 131 2013 20,285 30 -0.196 143 2014 20,340 45 0.296 129 Change 720 SI Average Annual Population |ncreoa 0L26% Source: Portland State University Population Research c=nter mwwfdx.edv/prcand cam||o20zaOtvofAshland Comprehensive Water Master Plan. As shown in Table 5, the City services a population of approximately 20,300 and it has sustained an annual average population increase of 0.26% since 2000. City water customers include residential (single family and multi -family), commercial, institutional (govern nnen|/nnunidpa|\, potable irrigation and non -potable irrigation (TID) customers. Figure 4 shows water use by customer type. The figure excludes water use by the non -potable irrigation customers. As the pie chart shows, themajority ofCity water use (69%)isbvresidential customers. City of Ashland Water Rates Cost of Service Study March :L5, 2oi6 Page 14 Figure 4 Water Use by Customer Type zn Single Family Residential M Multi -Family Residential Commercial Government & Municipal 3'3 THE WATER FUND The waterenterprise fund accountsforthe revenues and expenses associated with operating the water system. Revenues. Historically, 61% of the water enterprise fund's operating revenue has been derived from water sales. Other operating revenue includes bond proceeds, system development charges (SDCs), new service installation fees, inter -government revenues, interest, and other miscellaneous revenues. Table A-1 shows historical and budgeted water fund revenues. Figure 5shows the typical annual share ofrevenues bysource. Water sales by customer type is shown in Figure 6. ^Anenterprisefundisafundthatbin1endedtorecoverhscoststhroughuserfeesondcharges.Enterphoe funds also provide the repayment capacity for, and make debt service payments on, any debt incurred for capital projects associated with the utility; therefore, any water enterprise fund bond -funded projects do not diminish the Oty'sgeneral fund debt capacity. City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page 15 Figure 5 Typical Annual Sources of Water Fund Revenue .0 Water Sales 7,1 New Service Installation -'-^--------^-' '-^----^- �x/*x�uv�nm�ucu�mc�/�x e�m/sccx Figure Water Sales by Customer Type v Commercial �Government &Municipal � �Multi-Family Residential Rate revenue is generated according to the current water rate schedule shown in Table 6. City of Ashland Water Rates Cost of Service Study March is, 2o:L6 Page 16 Table Current Water Rates Rate Component Rate Schedule 7/1/2015 Monthly Service Charge Within City Limits Metersize 3/4' $23.50 z'' $46.99 z.5' $saea x^ $88.24 3" $184.50 4' $282.07 6" $528.92 Usage Charges Residential N 0ruobermay 0to300 cf per month per $0.024 301m1,000cf permomh per unit $0o2e9 1,001u`2,500cf permomh perunit $z000u ,2,50mcf per month per unit $zosz/ June September 0tn380cf permonth per unit 10.0243 301to1,000cf per month per unit $luzye 1'001tn2,500cf per month per unit $0.0400 2,501 toa'soUcf permonth per unit $0.0517 `s'mmcf per month per unit $0.0e/3 Non -Residential [11 0-50,000cf per month $0.0343 `s0,000cf per month $ouusa noIrrigation Rates unmetrrcdsemicc per acre urportion nf $170.01 Metered Service Base Service Charge per meter a`above Water Consumption per cf $0.0055 Bulk Water Rate For water provided una temporary basis through abulk meter onafire hydrant Deposit $1,85e.28 Basic Fee $234./7 Cost ofWater same asnon-residential Fire Protection Service This rate ,haUapply v,aUfire protection services u,fire guards. The basic service charge wiUbeequal tnthe minimum basic service charge. Water wiU be billed at non-residential rates. Outside City Limits All rates and charges for water service provided outside the city limits will be z.stimes the rates for water service provided within the city limits. Source: City mAshland [1]Irrigation customers only billed when the service takes water. City of Ashland Water Rates Cost of Service Study March is, 2oi6 Page 17 New development pays System Development Charges (SDC) fees to pay for new faci I ities necessary to accommodate the increased demand associated with new customers. The current SDCfee schedule isshown inTable 7. SDCcharges are not updated ospart ofthis Study. Table Water System Development Charges � Applicant Charges Reimbursement Improvement Total Residential All, per Sq. Ft. Habitable Area $0.9318 $1.8751 $2.6069 Commercial & Industrial Me1erSime 3/4' $1,792.89 $708422 $487711 � $2,988.75 '5,140.43 $8,129.18 1.5" $5975.70 $10,28087 $16,25657 21' $9551.48 $16448.58 $36,010.05 3" $20,917.65 $35,983.04 $56900.69 4" $35,857.80 $61,685.2I $97,543.01 6" $74,704.25 $128,S08.83 $203,211I0 8" $107,573.40 $185,053.61 $292,627.01 Source: sconomio&Financial oma|pis'Jvne5,zoz4 Water customers area I so ch a riged a fixed monthly fee by water meter size forth e Ash I and Forest Resi I iency Program. This new fee was adopted by City Counci I in May 2015 and is also not part of the Study. The Forest Resi I iency Program was included in the Water Fund prior to fisca I yeor2O15-l6. It is now part of public safety. The Forest Resiliency Program fee schedule is shown inTable 8onthe following page. Expenses. The water fund incurs annual expenses for supply, distribution, treatment plant, and conservation functions. Costs for these functions are further grouped into ten categories inthe Study: Personnel (includes benefits\ Supplies Repair & Maintenance '� Cornnnunications Contractual Services Central Service Miscellaneous Charges OiherPurchasedSen�ces �--�-------- T' - - -- --- - ------ �� -- - - Conservation Programs Franchise Tax City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page 18 Table Forest Resiliency Program Fee Schedule MeterSize Monthly Charge �� $1.39 1" $1.39 1.5" $6.95 Z' $11.12 3" $22.24 4'' $3475 6" $69.50 Source: Resolution 2o1sz4adding asurcharge towater meters ford`e purpose ofgenerating and dedicating general fund resources for additional work inthe forest interface pspart nfthe Ashland Forest Resiliency Program, mayzozs. Over the past six years personnel costs (in cludingsa I a ries and benefits), centra I service costs (support from other departments allocated to water), and miscellaneous costs have been the largest expenditure items. Personnel costs have comprised approximately 35 percent of annual costs of the water utility. The percentage share of fiscal year 2015-16 budgeted expenses by expense category isshown inFigure 7. Figure 7 Typical Annual Water Fund Expenses 2% m Personnel z, Supplies &Communications � Repair &Maintenance Contractual Services mCentral Service mMiscellaneous Charges imOther Purchased Services wFranchise Tax aConservation Programs City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page:iq An addition to the fiscal year 2015-16 budget is the cost of TAP water. This new water source first came online in the fall of 2014. The City anticipates using this water source one month every year in typical water years. Table A-2 shows historical and budgeted expenditures by water system function. Operations expenditures are summarized in Table A-3. Water Fund Balance. In 2010 and 2011 the water fund was unable to sustain itself. Inter -fund loans from other City funds were used to pay for operations of the water system. Following an increase in revenue in 2013 as a result of the completion of the Water Master Plan and implementation of increased rates, the water fund was able to sustain itself. The water fund balance increased from $2.7 million to $6.4 million. The inter -fund loans were repaid. The water fund balance decreased in fiscal years ending 2014 and 2015 (the last 2 fiscal years) to $5.2 million as revenues decreased due to the drought (despite rate increases over the same time period). Bond proceeds have been used increasingly since 2013 to fund major capital improvements. The historical water fund balance is shown in Table 9 below. Table 9 Historical Water Fund Balance Fiscal Year Ending Water Fund 2010 2011 2012 2013 2014 2015 Revenues $4,455,768 $4,806,604 $5,745,624 $8,280,514 $6,322,141 $6,604,338 Expenses $5,007,651 $4,996,091 $5,049,115 $6,899,636 $7,315,933 $8,414,077 Excess (Deficiency) ($551,883) ($189,487) $696,509 $1,380,878 ($993,792) ($1,809,739) Other Financing Sources $80,000 $550,000 ($200,000) $2,347,791 $829,630 $744,916 repayment of repayment of repayment of interfund loan & interfund loan & interfund loan Interfund loan interfund loan bond proceeds bond proceeds bond proceeds Net Change in Fund Balance ($471,883) $360,513 $496,509 $3,728,669 ($164,162) ($1,064,823) Fund Balance July 1 $2,323,768 $1,851,885 $2,212,398 $2,708,907 $6,437,576 $6,273,414 Fund Balance June 30 $1,851,885 $2,212,398 $2,708,907 $6,437,576 $6,273,414 $5,208,591 Source: City ofAshland CAFRs. City ofAshland Water Rates Cost of Service Study March 15, 2os6 Page 20 Section 4: FINANCIAL PROJECTIONS 4-1 REVENUE REQUIREMENT The revenue requirement refers to the amount of money that must be raised a rinuallyth rough rates. The projection ofrmvenuerequirenoentisthereforethecVrnerstoneforca|uu|ationof rates. This section explains the derivation of revenue requirement for this Study. Components ofrevenue requirement include: 0 Capital Improvements � Debt Service w System Rehabilitation � Operations Expenses and Reserves L]tyTlDnon-potable vxatersa|esrevenue asvveUasother non-wvatersa|esrevenue projections are credited against projected operadonscosts.Non-mmtersa|esindudeintergovernnnenta| revenue, interest on investments, new service installation revenue, and other miscellaneous revenues. 4-1.1. Capital Improvements The City's water system capital improvements plan (CIP) is shown in Table A-4. The table shows costs in inflated dollars to account for the increased cost of infrastructure over time. Project costs are increased 3.12% per year for inflation per the historical 1995-2015 20-year Engineering News -Record Construction Cost Index (ENR CCI) average annual increase. The table only shows costs to be borne by existing customers. Improvements that benefit future customers will be paid for with system development charges. Total CIP costs benefiting existing customers is summarized in Table 10. Total costs (inflated) are estimated at $28.6 million. Of this total, $20.3 million (70%) is for the new water treatment plant and reservoir identified in the Master Plan. Ofthe total identified $28.6million (inflated costs) in improvements, $2O.3million isassumed Lobefunded with SRFloans, $2.1million iyassumed tobefunded with bond proceeds, S3.8 million with cash raised byrates specifically for system rehabilitation, $O.4million with other water fund cash, and $2.0 million with use of restricted reserves for capital improvements. 41.2- Debt Service Existing debt service nfthe water fund isshown inTable A-S.Existing debt comprises City general obligation bonds as well as Medford Water Commission debt and State of Oregon revolving fund loan debt for the TAP project. StateofOnegonnavo|vinQfund|oandebt payments are estimated tobegin inhsca|year2017'18. New debt service estimates for projects bond-fundedbviheO1yaneshovvninTob|eA-6.Tabka Crowson 11 reservoir with the Oregon DWSRF program. City of Ashland Water Rates Cost of Service Study March i.5,2oi6 Page 21 Table 10 Summary of 10-Year CIP for Existing Customers 0 N O O t0�S t0 t0 t0 O N O O O ei CD Ln Ln to N cn rn r» N en tmis tmn A oo if)- tL4 V" V) toir o N N N N N M Q w lD w N t-zrh t"Th t�h O N N V'} V! Ita trJ tn- N N c* d' d N Ln Ln tom). tn- O O O O O O 0 d Q, Ov CD tfr ih v} to th 0 a 00 M ONO W ONO O N N N N .{/} {/�. 4.4 N Oh O N VI N � th 1O M r, 0 OO CD M M V) m 00 N rn r N ilf iJ? h to O th N CND d' kDD M w rA h O O O m-4 m cl N N h d N r c-I Ln M N tN-I 44- th 0 0 0 0 0 0 0 d ad h iN try m rr m c rq M N O 't N M N O LD M d' 0 N O M ',.... d It 0 w O O O O Ln _ N N N h W O7) m N tO �' N N U-) -i N M 'Z' ++ h It LO o 0 ~ cND M m CND 06 m �4 cn r� rl 00 H i � u � O N v U v SQ O ti to LL v -O C . a � _ V Cr C LL. t N C OI CJ O E LL O a N w a w o a� 0 cn u D F U m t� a City of Ashland Water Rates Cast of Service Study March 15, 2o16 Page zz 4-1_3- System Rehabilitation Depreciation is used as the basis forwhich to collect ratesto coversystern rehabilitation costs. It is recommended that the City collectwater rates to fund system rehabilitation costs. Table 11 shows the estimated cost of depreciation of the water system. The estimated cost includes replacement of existing assets and assets that are estimated to be constructed during the Study time period (see Table A-8). Table 11 Estimated Water System Assets Depreciation Assets Annual Depreciation Base z 2 3 4 s a Existing Assets Water Rights $0 $0 $0 $o $o $o $n Buildings $O $0 $o $o $o $O $0 Equipment $11'832 g8,189 $1'390 $z'nso $1'390 $1,3e0 $1'390 Improvements $676'083 $673'081 $663'935 $663'935 $653'735 $661,981 $657'684 Total Existing g687,915 $681'270 g665,325 $665,325 $665,126 $663,371 $659,074 New Assets Improvements $121,580 $323'159 $4893e6 $494288 $503'811 $511,829 $517,412 Combined Existing &New $809,495 $1,004,428g1,154,721$1,159,68$1,168,937 $1,175,200 $1,176,486 % Included inRates 100% z00% z00% 100% z00% 100% Amount mRates $1,004,428 $1,154,721 $1,159,613 $1,168,e37 $1,175,200 $1,176,486 Source: City ofAshland and xsc 4-1'4- operations Expenses and Reserves Table A-9 shows that operations costs of the water fund have increased at an average annual rate of 3.4% since 2010. This average annual increase is compared with a 2.7% Engineering News Record (ENR) Construction Cost |ndex/CC|\ increase and 1.8V6-2.2%Consunner Price Index (CPI) indexes. It is typical for utilities costs to increase at a faster rate than the price indexes shown. This Study recommends using average annual increases of 4.0% for personnel costs,3.5%fVr TAP water costs, and 3.0% for all other operating costs. 4.o~S- Calculated Revenue Requirement Table 12 on the next page estimates the revenue requirement of the water fund for the next 10 years. In fiscal year 2015-16 the revenue requirement is calculated at $5.78 million. The City projects revenues of $6.52 million. Any realized additional revenue will be reserved for capital improvements identified inthe Water Master Plan. City of Ashland Water Rates Cost of Service Study March 15, 2016 Page23 Table 12 Projected Revenue Requirement Revenues and Expenses 2015-16 Base 2016-17 1 2017-18 2 2018-19 3 2019-20 4 2020-21 5 2021-22 6 Operating Expenses Personnel 4.0% $1,737,310 $1,806,802 $1,879,074 $1,954,237 $2,032,407 $2,113,703 $2,198,251 Supplies 3.0% $305,825 $315,000 $324,450 $334,183 $344,209 $354,535 $365,171 Repair& Maintenance [1] 3.0% $410,512 $359,827 $370,622 $381,741 $393,193 $404,989 $417,139 Communications 3.0% $22,380 $23,051 $23,743 $24,455 $25,189 $25,945 $26,723 Contractual Services 3.0% $353,600 $364,208 $375,134 $386,388 $397,980 $409,919 $422,217 Central Service 3.0% $887,650 $914,280 $941,708 $969,959 $999,058 $1,029,030 $1,059,901 Miscellaneous Charges 3.0% $517,020 $532,531 $548,507 $564,962 $581,911 $599,368 $617,349 Other Purchased Services 3.0% $207,320 $213,540 $219,946 $226,544 $233,340 $240,341 $247,S51 Franchise Tax 3.0% $402,653 $414,733 $427,175 $439,990 $453,189 $466,785 $480,789 Conservation Programs 3.0% $114,500 $117,935 $121,473 $125,117 $128,871 $132,737 $136,719 TAP Water [2] 3.5% $44,000 $48,000 $50,000 $52,000 $54,000 $56,000 $58,000 Subtotal Operating Expenses $5,002,770 $5,109,906 $5,281,831 $5,459,577 $5,643,347 $5,833,351 $6,029,809 Debt Service Existing Debt (City bonds) Existing Debt Medford Water Commission Existing Debt (IFA note) New City Debt [3] Table A-6 New SRF Debt Table A-7 Subtotal Debt Service Capital Outlay Cash Funded System Rehabilitation Operating Reserves Subtotal Annual Cost Credits New Service Installation Intergovernmental Revenue Interest on Investments Miscellaneous Non -Potable Water(TID) Charges Subtotal Credits REVENUE REQUIREMENT $453,291 $451,941 $45Q491 $453,891 $457,091 $450,191 $448,241 $163,768 $163,768 $163,768 $163,768 $163,768 $163,768 $163,768 $0 $0 $157,000 $103,000 $103,000 $103,000 $103,000 $188,000 $188,000 $188,000 $188,000 $188,000 $188,000 $53,736 $313,722 $581,505 $1,145,400 $1,145,400 $1,145,400 $617,059 $857,445 $1,272,981 $1,490,164 $2,057,259 $2,050,359 $2,048,409 $402,240 $0 $0 $0 $0 $0 $0 $0 $1,004,428 $1,154,721 $1,159,613 $1,168,937 $1,175,200 $1,176,486 $0 $310,000 ($105,000) ($245,000) ($735,000) ($650,000) ($555,000) $6,022,069 $7,281,780 $7,604,533 $7,864,353 $8,134,543 $8,408,910 $8,699,704 10% $114,800 $117,096 $119,438 $121,827 $124,263 $126,748 $129,283 constant $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 constant $20,400 $20,400 $20,400 $20,400 $20,400 $20,400 $20,400 2,0% $12,000 $12,240 $12,485 $12,734 $12,989 $13,249 $13,514 Table 14 $80,742 $50,800 $53,727 $56,676 $59,632 $62,642 $65,663 $241,942 $214,536 $220,050 $225,637 $231,284 $237,040 $242,860 $5,780,127 $7,067,244 $7,384,483 $7,638,716 $7,903,258 $8,171,870 $8,456,844 base Change from Base Year Water Sales $6,515,358 $551,886 $869,124 $1,123,358 $1,387,900 $1,656,512 $1,941,485 Annual Change $551,886 $317,239 $254,234 $264,542 $268,612 $284,974 Percentage Change 8% 4% 3% 3% 3% 3% Source: HEC. [1] Maintenance costs reduced in year I by $63,000 which is the average amount spent on meter replacement in the City each year currently. Meter replacement costs will be recouped in the new meter replacement monthly charges. [2] Assumes 2.13 mgd for 31 days/year. In 2015 the cost is 68 cents per 1,000 gallons. The cost is assumed to increase to 75 cents per 1,000 gallons in 2016 and thereafter 3.5% per year in the model, [3] Assumes payments start the following year. The revenue requirement is projected to increase to $7.07 million in fiscal year 2016-17, and increase each year thereafter. The revenue requirement is projected to continue to increase fiscal years ending 2018 through 2022 to account for inflation, fund capital expenditures, and account for new debt. To keep rates at a 3% annual increase during this timeframe, City of Ashland Water Rates Cost of Service Study March is, 2o3.6 Page24 approximately $2.3million ofexisting cash reserves will bedepleted. Note that the revenue requirement is the amount that must be collected from potable water customers; it excludes revenues from water sales to City TID customers. The percentage increases in revenue requirement match the 2012 Water Master Plan for the first three fiscal years. 4.2 TALENT IRRIGATION DISTRICT NON -POTABLE IRRIGATION SERVICE Total annual costs of the water system to potable users is reduced by credits, including credit for water sales to TID non -potable water customers. In fiscal year 2015-16 TID charges are budgeted at$O1,0OO.This Study calculates the costs ofthe T|Dsystem a1$52,87Ufor fiscal year 2015-16. Table A-10 shows annual costs comprise city canal maintenance costs as well as staffing and materials costs. Table A-11 provides a supporting cost estimate for annual maintenance costs. TID irrigation water is supplied under a 1924, 1926 and 1935 contract between the City and TID. This contract allows for use of768 acre-feet for both non -potable irrigation and treated domestic water supplies. Use of TID deliveries by year since 2004 is shown in Table A-12. During drought years the contract may be reduced as it was in 2013 and 2014. The City also has a contract with TID for 600 acre-feet per year. The 600-acre feet contract is for potable water customers only. The City diverts TID waterto the Ashland Creek watertreatment plant where it is treated and then enters the potable water distribution system. In drought years the City may also divert a portion or all the 769 acre-feet contract water to the treatment plant. Underthis circumstance only the 'front side' canal users, located before the diversion to the treatment plant may receive water. As shown in Table A-12, on average, TID customers use 73% of the 769 acre-feet of water rights. This percentage is applied to the TID cost calculation for city canal maintenance costs. Table 13 shows allocation of TID system costs between unmetered and metered non - potable water customers for fiscal year 2015-16. City of Ashland Water Rates Cost of Service Study March is, 2o16 Page 25 Table 13 Calculated TID Use Rates for Fiscal Year 2015-16 Total TID Annual Cost Current Calculated Calculation Rates 15/16 Rates R9 $52,870 Metered Rate per Cu. Ft. b $0.0055 $0'0022 SOU Annual Costs [1] o=7,1O1,G9U*b $15,348 UnmeteredIrrigators Costs UnmeteoedIrrigators Acres UnrnetenedAnnual Rate per Acre e=a-c-d $35316 e 1/4 fd/e $170.01 $202.97 Source: City ofAshland ondnsc [1] Excludes service charge and meter replacement fee. Cost share based onT|Dwater use see Table A+1U: Total Cubic Feet 24,463,405 SOU Cubic Feet 7'101,690 UthiaPark Cubic Feet 1,020'495 All Other Irrigators Cubic Feet 16,342,228 City of Ashland Ordinance 1288 provides for metered and unmetered TID irrigation water rates. The ordinance requires that rates shall be self-supporting so far as is practicable, so that domestic water users do not subsidize the cost of the TID irrigation water system; however, the ordinance also states that the primary use of the City's TID water is for domestic purposes in water -short years. In addition, TID non -potable water will be available for irrigation purposes at rates less than those ineffect for domestic water. The calculated rate for metered customers is less than the current rate. The rate for UUD1etered customers dO85 not immediately increase to cost of service. It gradually increases over the next six years to cost of service. Rate per Rate per Acre Table 14 shows the calculated offset to the revenue requirement overthe Study period. Table 14 TID Revenue Offset 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Costs Assumption Base 1 2 3 4 5 6 TID Annual Cost Paid by Metered Customers Base Meter Charge [1] SOU Lithia Park (City) Metered Water Use [2] $4,231 $432 $446 $460 $466 $487 $502 $2,257 $351 $362 $373 $377 $395 $407 SOU $39,059 $15,875 $16,420 $16,984 $17,568 $18,172 $18,798 Lithia Park (City) $5,613 $2,281 $2,359 $2,441 $2,524 $2,611 $2,701 Total SOU $44,672 $18,156 $18,779 $19,425 $20,092 $20,784 $21,499 Total Lithia Park (City) $7,869 $2,632 $2,722 $2,814 $2,901 $3,007 $3,108 Total TID Metered Customers $52,541 $20,788 $21,501 $22,238 $22,993 $23,790 $24,608 All Other TID Users Costs Annual Flat Fees [3] $29,582 $31,861 $34,140 $36,418 $38,697 $40,976 $43,255 rTotal TID- Unmetered Customers $29,582 $31,861 $34,140 $36,418 $38,697 $40,976 $43,255 Total Estimated TID Customer Payments Meter Fees $6,488 $783 $809 $833 $842 $883 $909 Use Fees $74,254 $50,016 $52,919 $55,843 $58,790 $61,760 $64,754 Total Fees $80,742 $50,800 $53,727 $56,676 $59,632 $62,642 $65,663 Contracted Water 2.0% $0 $0 $0 $0 $0 $0 $0 City Maintenance Costs 3.0% $30,070 $30,972 $31,901 $32,858 $33,844 $34,859 $35,905 Canal Depreciation constant $0 $0 $0 $0 $0 $0 $0 TID Billing Costs (personnel) 4.0% $22,800 $23,712 $24,660 $25,647 $26,673 $27,740 $28,849 Total Annual Cost (rounded) $52,870 $54,684 $56,562 $58,505 $60,517 $62,599 $64,754 Annual Percentage Increase 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% Source: City of Ashland and NEC. [1] Customer charges and meter replacement fees for one 6" meter (SOU) and one 4" meter (Lithia Park). [2), (31 Calculated Rates from Table 12. Calculated Rate per Metered Connection $0.0055 $0.0022 $0.0023 $0.0024 $0.0025 $0.0026 $0.0026 Calculated Rate per Acre at Cost of Service $170.01 $209.93 $217.14 $224.60 $232.32 $240.32 $248.59 Calculated Rate per Acre at Gradual Increase $183.11 $196.20 $209.30 $222.40 $235.50 $248.59 swinim City crews replace older water meters that are near the end of their useful life, or which are inaccurately measuring water flow. The City has not been col I ectingfunds to routinely replace meters. The cost to replace meters, by size of meter, was used to determine the annual cost of a meter replacement program (it is estimated that meters will have to be replaced every 20 years). Meter replacement program costs will increase as the number of City water meters increases and as the cost of installation increases. It is estimated that the meter replacement program will increase annually from approximately $138,000 in 2015 to $172,000 fiscal year ending 2022, as shown in Table 15. City of Ashland Water Rates Cost of Service Study March:L5, 2o16 Page27 Table 15 Estimated Meter Replacement Fee Program Costs Fiscal Year Ending 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Item Assumption Base 1 2 3 4 5 6 Projected Growth in Water Meters 0.59% a59°o 0.59% 0.59% 0.59% 0.59% Projected City Water Meters 8,819 8,871 8,923 8,976 9,029 9,082 9,136 Estimated Replacement Cost per Meter [11 3.12% $312 $322 $332 $342 $353 $364 $376 Percentage of Meters Replaced 20-yr cycle 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Estimated Meter Replacement Program Cost $137,719 $142,851 $148,169 $153,697 $159,426 $165,363 $171,533 Source: City of Ashland and NEC. [1] Weighted average cost of meters. Assumptions for meter costs in 2015 are shown in Table A-13. Meter costs and fees are increased 3.12% per year per the historical 20-year average annual ENR CCI increase previously described. Table 16 shows the calculated meter replacement fees. Since the revenues and costs of the meter replacement program are assumed to be equal each year, the program is not included in the revenue requirement calculation. Table 16 Calculated Meter Replacement Fees Effective July 1 Meter 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Size Base 1 2 3 4 5 6 Annual escalator 3.12% 3/4" $1.15 $1.18 $1.22 $1.26 $1.30 $1.34 $1.38 1" $1.72 $1.77 $1.83 $1.88 $1.94 $2.00 $2.07 1-1/2" $2.71 $2.79 $2.88 $2.97 $3.06 $3.16 $3.26 2" $3.65 $3.76 $3.88 $4.00 $4.12 $4.25 $4.38 3" $7.81 $8.06 $8.31 $8.57 $8.83 $9.11 $9.39 4" $16.98 $17.51 $18.05 $18.62 $19.20 $19.80 $20.41 6" $23.54 $24.28 $25.03 $25.81 $26.62 $27.45 $28.30 8" $28.39 $29.27 $30.18 $31.12 $32.10 $33.10 $34.13 City of Ashland Water Rates Cost of Service Study March 15, 2oz6 Page 28 Section 5: COSTOFSERVICE ANALYSIS 5.1 FUNCTIONAL COST ALLOCATION City water system costs were classified into different functions: customer costs, meter and services costs, capacity costs, and commodity costs. Customer costs, meter and services costs, and a portion of capacity costs are fixed costs. Fixed costs general I y consist of costs that a uti I ity incurs to serve custo me rs irrespective of the amount or rate of water they use. s Aportion of capacity costs and all commodity costs are variable costs. Variable costs are those that change in total as the volume of activity changes, as measured in a specific time period. These commonly include the costs of chemicals used in the treatment process, energy related to pumping for transmission and distribution, and purchased water. Table A'14shows how the expenses inthe (]k/sbudget were allocated tothe different functions of water service. Expense functions were allocated based on one of five different methodologies. These methodologies include: 1. Plant In Service. Plant in service allocation is shown in Table A-15. Plant in service costs include the original cosiofcurrentvxatorsystennassets.Totm|cosLiso\|ocatedto customers, meters and services, capacity, and commodity. 2. Ratio of Average to Peak Month. The calculation of peak to average month flows is shown in Table 3. Expenses are allocated 55Y6to customers and 45%to use functions using this methodology. 3. Utilities. All utilities costs (electricity) are allocated 100% to commodity because they are directly affected by the amount of water delivered. TAP water is also allocated 1UOY6toconnmod ity. 4. Customers. Central service costs and costs such asoffice supplies, telephones, computers, postage and insurance are allocated 100% to customer costs. These costs are not affected bythe amount ofwater delivered. S. Average ofClassified Costs. Many expenses are allocated Lomultiple functions nfwater service because they do not directly relate to capacity of the water system, or quantity of water deliveries. These expenses are allocated among the customer, meters and services, capacity, and commodity functions based on the combined percentage allocation of all other classified costs. Examples of expenses allocated using this methodology include salaries and other personnel costa, professional services, and training costs. Customer, meters and services, and aportion ofcapacity costs are captured inflat monthly fees. Commodity costs and a portion of capacity costs are captured through variable water service fees (use fees). Capacity costs were split between flat monthly fees and use fees to reflect that some capacity or infrastructure costs must be recovered regardless of the amount ofwater used.* 5[W1Manual, pp. I37-13O. City of Ashland Water Rates Cost of Service Study March 15, 2o:i6 Page29 The portion of capacity costs allocated to the flat monthly fees is referred to as a readiness to serve charge. The allocation of revenue requirement using the functional allocation is shown in Table 17. Table 10 Allocation of Revenue Requirement to Cost Functions costs Functional mwmun 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total Revenue Requirement $4543,230 g7,06/.244 $7,384,483 $7,638,716 S7,e03,258 $8,171,870 $8,456,844 Customer zo% $1.177'781 $1'272'104 $/'329,207 $1'374,969 $1'*22'587 $1'470,93/ $1'522,232 Meters uServices sw $szr'zaz $353.362 $369'224 $381'936 $3e5.163 $*nx'se* $*22,842 Capacity (in flat charge) [z] 19m $z.z*s.zm $1,3*2'7/6 $1'403'052 $1'*51'356 $4501'619 $1,552,655 g1'606'800 Capacity (in use charge) azm $2.028'401 $2'1*0,846 $z'my'zyo $2'368'002 g2'450'010 $zsas'zuo $2.621,622 cummou/w 27% $z'/as.so $z'9u8.15* $z'e*s'om $z'osz'*es $2.133.880 $2'206'405 $2'283'348 nxa| zoom $'sm'zao $/.067'244 $7.384,483 $/'oso'ma $7,903,258 $8'174870 g8'*56,844 SoucoEC. 0The readiness mserve charge, i21mzumthe City collected mmmwater charges mflat monthly charges; however, this was adrought year. During drought years the base charges comprise alarger portion oftotal revenues. S.2 RATE DESIGN Allocation of costs to customer categories is based on the Commodity -Demand method described in the M1 Manual Chapter 111.2. Once the revenue requirement has been projected and the functional allocation analysis performed the City has to arrive at a rate design (how the revenue requirement will be collected) with knowledge of how the City's water system costs are structured. In determining an appropriate rate design for Ashland, this Study considered the following key objectives: w Rates must be capable of generating sufficient revenues to meet all annual financial obligations nfthe water enterprise fund; • The rate structure should encourage water efficiency; m Change to the rate structure must be administratively feasible (compatible with the existing billing system and straightforward to explain to customers); w The rate structure should beasrepresentative oflocal customer water use patterns as possible; and • Revised rates must be supportive of City goals, keepingwithin affordability guidelines. With these objectives in mind, the differential in costs by pumping zone was analyzed. The change to the rate design was discarded. City of Ashland Water Rates Cost of Service Study March 15, 2o:L6 Page30 Flat Monthly Costs. The customer, meters and services' and readiness to serve costs should all be collected in flat monthly fees. Options for collection include combining all costs into one service charge based on meter size (as is currently done) or separating customer costs from capacity costs and collecting customer costs based on the number of accounts, rather than meter size. While both approaches are common, this Study recommends a customer charge and a service charge because this methodology more accurately captures the costs of service. Central services costs, which make up the majority of customer costs, are a direct function of the number of water accounts served, not capacity of the system (meters). This Study recommends implementation of monthly customer charges as shown in Table 18. If a water account has multiple meters associated with it, the account would only pay the customer charge once. In contrast, capacity costs are collected for each meter with the potential touse the capacity ofthe system. Table 18 Calculation of Customer Service Costs per Account Allocated To 2015-16 2016-17 2017-18 018-19 2019-2 2020-21 201-22 Projected Annual Growth Rate 859% o59% 859% osg% 859% 859% Revenue Requirement Allocated $1,1/7781 $1,272104 $1,329207 $1,374969 g1,422,587 $1,470937 $1,522,232 Customer Cost per Bill per Year $131.1* $140.83 $146.28 $150/0 $154.72 $159.04 $163.62 Source: o*o«mu"oaand xsc Table 19 on the next page shows allocation of meters and services and the readiness to serve costs. The calculation is based on total number of billable meter equivalents and the meter ratios ofmeter sizes toa3/4"meter. Meter ratios reflect the difference inwater volume that can be taken through the meter. Calculation of equivalent meter ratios is shown in Tables 28 andAr1G. ' In addition to the customer and service charges calculated from the revenue requirement projection and allocation, the new rate structure adds the meter replacement fee (see Section 4) to the service charge. The revised flat monthly charge now includes three components: the service charge, the customer charge, and the meter replacement fee. Variable (Use) Costs. Remaining capacity costs and commodity costs are recovered from City of Ashland Water Rates Cost of Service Study March 2.5, 2o:L6 Page 31 water meters. In 2014 the City collected 55% of costs through use charges .7 This Study calculates rates with 58% of costs collected in use charges so that use charges continue to send a water conservation signal to customers. There are many ways that the City could collect use charges. This Study selected a rate structure based on City goals and customer water use patterns. Table 19 Calculation of Monthly Service Charge by Meter Size 2015-16 Base 2016-17 1 2017-18 2 2018-19 3 2019-20 4 2020-21 5 2021-22 6 Allocated Costs [1] $1,570,375 $1,696,139 $1,772,276 $1,833,292 $1,896,782 $1,961,249 $2,029,642 Est. Billable Meter Equivalents 11,184 11,250 11,317 11,384 11,451 11,519 11,587 Meter Meter Size Ratio Monthly Service Charge per Meter 3/4" 1.00 $11.70 $12.56 $13.05 $1142 $13.80 $14. 19 $14.60 1., 1.00 $11.70 $12.56 $1105 $13.42 $13.80 $14.19 $14.60 1.5" 5.00 $58.51 $62.82 $65.25 $67.10 $69.02 $70.94 $72.99 2" 8.00 $9161 $100.51 $104.41 $107.36 $110.43 $113.51 $11638 3" 16.00 $187.22 $201.02 $208.81 $214.73 $220.86 $227.02 $233.56 4" 25.00 $292.53 $314.10 $326.27 $335.51 $345.09 $354.72 $364.94 6" 50.00 $585.05 $628.19 $652,53 $671.03 $690.19 $709.45 $729.87 8" 80.00 $936.08 $1,005.11 $1,044.05 $1,07165 $1,104.30 $1,135,12 $1,167.80 Source: CityofAshiand and HEC. [1] Includes meter and services costs and portion of capacity costs that represent the readiness to serve Table 20 Estimated Meter Equivalent Units Number of Ratio to Equivalent Meter Size Meters 3/4" Service Meter Units Ill 3/4" 7,814 1.0 7,814 11. 509 1.0 509 1.5" 167 5.0 835 2" 145 8.0 1,160 3" 21 16.0 336 4" 14 25.0 350 6" 2 50.0 100 81. 1 80.0 80 Total 8,673 11,184 Source: Table B-1ofthe AWWAMI Manual, Cityof Ashland, and HEC. [1] Uses safe maximum operating capacities of C-700-09 Displ a cement Type Meters (bronze main case) for meters sma II er than 2" and C-702-10 Compound Type, Class I for meters 2" and I a rger. 7 Percentage will fluctuate from year to year. Since 2014 was a drought year it is expected that use charges would normally comprise a larger share of total water rate revenues (between 55% and 60%). City of Ashland Water Rates Cost of Service Study March 3.5, 2oa6 Page32 This Study proposes to keep the City's current increasing block rate structure for most customers for use charges. Properly designed increasing Nock rates recover class -specific costs ofservicevvhi|esendingonooneconservation-ohentedphcesigno|tothatdasx.»TheK4I Manual page 116 also summarizes that "increasing block rate structure have found growing use in areas experiencing growth in water demand that is reaching the safe yield or capacity of the system, where there has been an impetus for improved efficiency in water use." Setting appropriate increasing blocks is determined by examining customer characteristics. 5.2.1. Customer Characteristics Table 21 on the following page shows the customer characteristics of residential, non- residential, and irrigation customers. Average monthly use, monthly winter average and monthly summer average use as well as average annual use by customer type are calculated using 2014 meter reads. In the summer months all residential customers and commercial customers with meters 2"orless use approximately twice the amount ofwater that they do during the winter months. Larger commercial customers and institutional customers use about 1.5 times the amount of water during the summer months. The surnmerto average month ratio is close to one for institutional customers and the maximum month usage is in May, before the peak use for the water system asnwhole. Institutional characteristics suggest one rate for all water use would be appropriate. Irrigation customers display very different usage to the other customer types. Only about 10% of irrigation customers take water throughout the yea r. Figure 8 shows customer usage patterns by customer type throughout the year. The peaking patterns of residential and irrigation customers is pronounced compared with the other customer types. These customers also comprise 81% of total water use (see Figure 4) therefore a rate structure that encourages efficient use of water during the summer months is very important. Figure 8 Monthly Water Use 6vCustomer Type o"w«oou 10,0-j^am 4,OmSM +="~" ~�-Residential --/mgann » M1 Manual page1I2. City of Ashland Water Rates Cost of Service Study March 15, 2o:L6 Page33 Table 21 Customer Usage Characteristics 0 = 0 E .0 E :3 Ln Q 0 4a E to (P E (U bIO Lr) r*4 0 0 LD 00 r-i 0 Q0 00 0 E 7Z7 Ln C-4 M M M 00 or- IF (-� 06 LA Qj bp N1.0 00 0) r, 4, 0 0 00 1.0 0 2i r- 00 Ln �D LSO a) �.O 01-1 0 -0 M M C14 On 00 r- +14- Ln EA D =3 MO n w =3 txc = E =w < < w < C) a 0 CL Q) U SZ tw 0, 00 IZT (D cr) 0 00 It Ln M " SZ)- CU LO rj LJO M LO 1.0 r, rIj 00 rq e > < Q6 co 0) Ln 0 00 Co 0 r-i It 0) r- 'a vat N LO Lr) rf) CY) wLn 0 D bjO 0 M M 41 CD r1i a) 'ji (n N 0 (D Q0 O M O1 St O -4 Ln r, r- Ln to N Ln E 41 Qj w rn Ln M Ln =5 z (13 (u V N E E E 0 (U -a - -a E E .2 41 41 7n aj 10 Ln 0 0 U 0 8 kA M 4� w z 12 City of Ashland Water Rates Cost of Service Study March 15, 2o:i6 Page34 Use bycustomer type bymonth isfurther exam ined by water meter size inTable A-17.The table shows that useisdhvenbvcustonoercategoryandhvnneLersize.&ooedonuse characteristics by customer type the proposed rate structure includes five customer categories, designed to capture customer use patterns. The customer categories include residential, connnnercia|2"nrsrne||er,cononoeroia|greoter1hanl",instituhona|,andirrigoiion. Bill Tabulation. Bill tabulation is a1oO| used to analyze customer use data to determine appropriate rate blocks. Bill tabulations and analysis for residential customers are shown in Tables Ar1#through A-2O.OnaDannual basis, residential customers take 3GY6ofwater in tier l,3796intier 2,19Y6intier 3,4Y6iDtier 4and 3%intier 5(summer months only\. Residential use by tier is illustrated in Figure 9, This Study recommends keeping the current tiers for residential customers. As is desired, the current rate structure is capturing the majority of water use in tiers l, 2, and 3. Only excessive water users (the top 796 of water) are billed in tiers 4and 5. Tier only applies during the summer (June through Septenober)s. Figure 9 Residential Water Use by Tier 68% - P,Tier 1 onTier 2 �Tier 3 50% 48%- Tler4 MTier 5 - 40% 38%37% 36%37% -- - 30% - 25% 19 % R. 20% �YC 10% �Y6 3Y6`'" 3% O% �� Residential Winter Residential SuDOrnGr Residential - AUDUa| Non-residential bill tabulation under the current rate structure is shown in Table A-21- The table shows large discrepancies in water billed under tiers 1 and 2 among the different non- residential customer types (irrigation, commercial and institutional) as illustrated in Figure 10. This Study recommends only charging commercial customers two tiers. The proposed » Tier 1bintended tocapture typical customer monthly indoor water usage. Tier Zbintended tocapture typical customer monthly indoor usage and some outdoor water usage. Tier 3 is intended to apply to customers using more than the typical customer does in an average water use month. two tiers result in the bill tabulation shown in Table A-22. As a result of changing the commercial tiers according to meter size (less than 2" and 2" and larger), 60-65% of water is billed in tier 1, providing consistency among different commercial users. This is shown in Figure 11. The current rate structure and proposed rate structure are compared in Tables A- 23 and A-24. Figure 10 Non -Residential Water Use by Tier (current rate structure) 120% P. Tier 1 99% 100% — Tier 2 - 88% 80% 60% 011" 60% W 40% 40% 20% 12% 1% t. 0% Commercial Institutional Irrigation Figure 11 Commercial Water Use by Tier (proposed rate structure) 70% 61% D; Tier 1 60% t 01. 1z.-1 Tier 2 50% 39% 40% 30% A.V Pe2i 20% Kr r. M. M '10. . V KI Q 10% 0% Commercial <2" 65% 35% Commercial 2+" City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page36 Historical potable water use by customer type is shown in Table A-25. Projected potable water demand is shown in Table 22. Total number of water users by customer category is projected using an average annual growth rate of 0.59%. The growth rate is based on the average of the State certified population estimates historical growth rate and the City's Comprehensive Plan estimated growth rate. Projected water demand is based on average annual use by customer category for calendar year 2014. Table 22 Projected Potable Water Demand Potable Water Customer 2015-16 Base 2016-17 1 2017-18 2 2018-19 3 2019-20 4 2020-21 5 2021-22 6 Residential Figures in Cubic Feet Single Family 62,048,584 62,463,798 62,760,506 63,092,739 63,426,063 63,763,271 64,099,340 Multi -Family 20,299,186 20,443,836 20,544,128 20,654,585 20,765,447 20,877,506 20,989,338 Subtotal Residential 82,347,770 82,907,634 83,304,634 83,747,324 84,191,510 94,640,777 85,088,678 Non -Residential Commercial <2" meter 10,276,017 10,477,157 10,522,645 10,576,058 10,629,590 10,683,875 10,737,773 Commercial 2"+ meter 7,446,478 7,592,234 7,625,196 7,663,901 7,702,694 7,742,031 7,781,088 Institutional 6,197,355 6,282,192 6,314,230 6,348,832 6,383,577 6,418,661 6,453,731 Irrigation 14, 792, 917 14,121, 921 14,133,872 14,179, 296 14,224, 212 14, 271, 344 14,315, 774 Subtotal Non -Residential 38,712,767 38,473,504 38,595,943 38,768,087 38,940,073 39,115,911 39,288,367 Total Billable 121,060,537 121,381,138 121,900,577 122,515,411 123,131,582 123,756,688 124,377,045 Tracking Water 1,254,006 1,261,422 1,268,881 1,276,385 1,283,932 1,291,525 1,299,162 Unaccounted Water 5,504,154 5,518,915 5,542,626 5,570,631 5,598,698 5,627,170 5,655,429 Estimated Water Produced 127,818,697 128,161,475 128,712,083 129,362,426 130,014,213 130,675,383 131,331,636 Source: City of Ashland and HEC. Tables A-26 and A-27 show the water demand calculations. Projected water demand accounts for decreased use of water due to reaction to increased water prices. This effect is called `price elasticity.' Price elasticity measures the change in water use resulting from a price increase, all other things held equal. Price elasticity factors vary by location, pricing structure of both water and sewer rates, time of year, and customer type. Price elasticity is only applied to real price increases; that is the price increase adjusted for inflation, to keep the effect of the price of water independent of total cost increases. For example, if the price increase necessary to meet the revenue requirement is 10.0% and inflation is 2.0%, any change in water demand as a result of a price increase is calculated on an 8.0% increase. With a negative price elasticity of 0.1, a single family residential customer is expected to decrease water use by 1.0% when price increases 10.0%. Irrigation customers are anticipated to react the most to water price Increases. City of Ashland Water Rates Cost of Service Study March i5, 2oi6 Page 37 Table A-2Qcompares the water demand projection inthe Study towater demand projections in the 2DllWater Master Plan. |talso shows derivation of the average annual growth rate used inthe Study. This cost ofservice water rate study projects |nvverdennandsthanthe2O12VVater Master Plan; however, this is considered reasonable for purposes of the Study. As described in Section 1 of the Study, the purpose of the Water Master Plan is to plan for maximum future use whereas the purpose of the Study is to plan for minimum future use. S.4 CALCULATED RATES The flat monthly charges were calculated in Section 5.2. Use charges are calculated based on the proposed new customer categories, rate structure (tiers), estimated water use by tier, and total projected water demand (Section 5.3\. Total costs allocated to use charges equals capacity costs allocated to use charges and commodity costs. The allocation of these costs by customer type is shown in Table A-28.A support table to the allocation of commodity costs is shown in Table A-30. Table 23 on the next page shows the calculation of usage charges. The cost ratios between residential tier 1 and tier isO.8O. Between tier and tier the ratio is 1.35, between tier and tier 4 it is 1.75 and between tier 4 and tier 5 it is 2.25. As an example, tier 3 water is 35% more expensive than tier Jwater. Commercial customers would be charged at the residential tier 2 and tier 3 rates. On -peak and off-peak (seasonal) potable irrigation rates were calculated for commercial and institutional irrigation customers based on historical usage as shown in Table A-31, On -peak rates would be charged June through September. Institutional customers would be charged one rate for all consumption. Calculated water rates through the Study period are shown in Table 24 on page 40. Monthly City of Ashland Water Rates Cost of Service Study March is, 2oi6 Page38 Table 23 Calculated Use Charges per Cubic Foot Item 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Base 1 2 3 4 5 6 Allocated Cost Total Consumption Cost per Cubic Foot [1) Institutional Costs Insitutional Cost Insitutional Use Institutional Cost per Cu. Ft. Residential & Commercial Costs Residential Cost Commercial Cost Total Resid. & Comm'I Costs $3,795,073 $4,099,001 $4,283,000 $4,430,455 $4,583,890 $4,739,685 $4,904,969 121, 060,537 121, 381,138 121, 900, 577 122, 515,411 123,131, 582 123,756, 688 124, 377,045 $0.0313 $0.0338 $0.0351 $0.0362 $0.0372 $0.0383 $0.0394 Estimated Usage by Customer Group by Tier $170,913 $184,600 $192,887 $199,528 $206,438 $213,454 $220,898 6,197,355 6,282,192 6,314,230 6,348,832 6,383,577 6,418,661 6,453,731 $0.0276 $0.0294 $0.0305 $0.0314 $0.0323 $0.0333 $0.0342 $2,613,129 $2,822,401 $2,949,094 $3,050,626 $3,156,275 $3,263,548 $3,377,356 $466,606 $503,975 $526,597 $544,727 $563,592 $582,747 $603,069 $3,079,735-$3,326,375 $3,475,692 $3,595,353 $3,719,866 $3,846,295 $3,980,425 Tier 1(Residential) 29,979,403 30,183,226 30,327,758 30,488,923 30,650,632 30,814,192 30,977,254 Tier 2(Residential &Comm'I) 41,828,362 42,254,443 42,451,723 42,674,612 42,898,188 43,124,473 43,349,830 Tier 3(Residential &Comm'I) 22,486,770 22,724,357 22,830,151 22,949,856 23,069,927 23,191,461 23,312,483 Tier 4 (Residential) 3,675,585 3,700,574 3,718,294 3,738,054 3,757,880 3,777,933 3,797,925 Tier 5 (Residential June - Sept only) 2,100,145 2,114,423 2,124,548 2,135,838 2,147,167 2,158,624 2,170,047 Total Use Residential & Comm'I 100,070,265 100,977,025 101,452,474 101,987,283 102,523,794 103,066,683 103,607,539 Resid. & Comm'I Cost per Cu. Ft. Ratio Tier1(Re sidential) 0.80 $0.0230 $0.0246 $0.0256 $0.0263 $0.0271 $0.0278 $0.0287 Tier 2(Residential &Comm'I) 1.00 $0.0287 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 Tier 3 (Residential & Comm'I) 1.35 $0.0387 $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 Tier 4 (Residential) 1.75 $0.0502 $0.0537 $0.0559 $0.0575 $0.0592 $0.0609 $0.0627 Tier 5 (Residential June - Sept only 2.25 $0.0646 $0.0691 $0.0719 $0.0739 $0.0761 $0.0783 $0.0806 Irrigation Costs [2] Irrigation Cost $544,426 $588,026 $614,422 $635,575 $657,586 $679,936 $703,647 Irrigation Off -Peak Use 27% 4,050,831 3,867,088 3,870,361 3,882,799 3,895,099 3,908,006 3,920,172 Irrigation Summer (Peak) Use 73% 10,742,086 10,254,833 10,263,511 10,296,496 10,329,113 10,363,339 10,395,602 Off -Peak Cost per Cu. Ft. $0.0292 $0.0331 $0.0345 $0.0356 $0.0367 $0.0378 $0.0390 On -Peak Cost per Cu. Ft. $0.0397 $0.0449 $0.0469 $0.0483 $0.0498 $0.0513 $0.0530 Source: HEC. [1] Bulk water rate is the average cost of water collected in use charge for all customer types [2] Commercial and Institutional Irrigation services. City of Ashland Water Rates Cost of Service Study March 1-5, 2oz6 Page 39 Table 24 Summary ofCalculated Water Rates Changes Current 2016-17 Rates Effective 2017-18 2018-19 2019-20 2020-21 2021-22 Monthly Charges ($ per Bill) Customer Charge $lOO $11.74 $12.19 $17.54 $22.89 $13.25 $13.64 Service Charge Monthly Charges ($ per Meter Size) g/4"and Fire Guards $23.50 $13.75 $14.27 $I4.68 $15.10 $15.52 $15.98 I" $46.99 $14.34 $14.88 $15.31 $15.75 $1619 $16.66 15" $66.89 $65.61 $68.I3 $70.07 $7I08 $74.10 $76.24 2" $88.24 $104.27 $108.28 $111.35 $114.55 $117.76 $121.16 3" $184.50 $209.08 $217.12 $223.30 $I29.68 $236.13 $242.95 4" $282.07 $331.60 $344]2 $354.15 $364.29 $374.52 $385.35 6" $528.92 $652.47 $677.56 $69684 $71681 $736.90 $758.18 8" $881.48 $1,034.38 $1,074.23 $1'104.77 $1,136.39 $1,I68.21 $1,201.93 Potable Water Use Charges $ per cubic foot Bulk Water Ill $0.0338 $0.0351 $8.0363 $0.0372 $0.0383 $0.0394 Institutional Water [1] $0.0294 $0.0305 $0.0314 $0.0523 $0�0833 $0.054I Reaidaodm| [2] Tier $0.0343 $0.0246 $0�0I56 $0.0263 $0.0271 $0.0I78 $0.0287 Tier $0.0299 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 Tier $0.0400 $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 Tiar4 $0.0517 $0.0537 $0.0559 $0.05/5 $0.0592 $0.0509 $0.0627 Tier 5(]un-Seponly) $0.0673 $0.0691 $0.0718 $0.0739 $0.0761 $0.0783 $0.0806 Commercial [3] Tier $0.0343 $0.0307 $0.03I9 $0.0329 $0.0838 $0.0848 $0.0858 Tier $0.0363 $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 Irrigation [4] Off -Peak (Oct -May) [1] $0.0331 $0.0345 $0.0356 $0.0367 $0.0378 $0.0390 On -Peak (Jun Sep) [1] $0.0449 $0.0469 $0.0483 $0.0498 $0.05I3 $0.0530 Sou,ce:xEC [1]cvnenuvcharged the sameasx"mmemia|customers. [2]Tiers uonotch anmeunder new rate structure. They are: Tier z-up ous000tTier 2 so1'z,0ooctTier a 1,001-2,500ct Tier z'soz-s'souutTier z greater than s'eoocf. Residential irrigation services currently charged the same as residential domestic services. Under the new rate structure irrigation use would uecombined with domestic use. [3] Commercial currenttiers are <50,000 cf and >50,000 cf. New tiers are <2,500 cf and >2,500 cf for commercial customers with meters 'z^and ^zs'000and /zs'unofor larger meters. ygSeasonal rates for commercial and institutional irrigation meters. City of Ashland Water Rates Cost of Service Study March is, 2oi6 Page40 5.4.1. Cost of Service Redistribution of Costs The cost of service analysis shows that currently there is subsidization of rates among customer classes. Table 25 shows the reallocation of costs as a result of the cost of service analysis. Cost reallocation is also illustrated in Figure 12. Detailed calculations of revenues under the new rate structure are provided in Table A-32. Table 25 Cost Allocation by Customer Type Customer Type Current (per Budget) Total Share of Total New (see Table A-32) Total Share of Total Cost Redistribution As % of Total Cu rre nt Cost Difference POTABLE Residential $4,621,000 70% $4,663,111 71% 1% $42,111 Non -Residential Commercial $938,800 14% $825,265 13% -12% ($113,535) Institutional $278,900 4% $273,548 4?/o -2% ($5,352) Fire Guards $25,500 0% $31,774 0% 25% $6,274 Irrigation $649,777 10% $749,532 11% 15% $99,755 Subtotal Potable $6,513,977 99% $6,543,230 99% 00% $29,253 NON -POTABLE (TID) Metered $52,541 1% $17,554 0% -67% ($34,988) Unmetered $29,582 0% $35,316 1% 19% $5,735 Subtotal Non -Potable $82,123 1% $52,870 1% -36% ($29,253) Total FY 2015-16 $6,596,100 10094. $6,596,100 100% 0% $0 Source: Cityof Ashland and NEC. Figure 12 Redistribution of Costs to Customer Types Fire Guards TID Water Institutional Irrigation Commercial M MMU, Residential 0.0% 10.0% 20.0% MCI% 40.0% 50.0% 60,0% 70,0% 80.0% Residential Commercial Irrigation Institutional TID Water Fire Guards m New 70.7% 12.5% 11.4% 4.1% 0.8% 0.5% 01 Current 70.1% 14.2% 9.9% 4.2% 1.2% 0.4% City of Ashland Water Rates Cost of Service Study March 1.5, 2o:i6 Page 41 5.5 PROJECTED CASH FLOW AND FUND BALANCE Table 3Gprojects cashflVvvLhrouehfisca|year20Il-22fortheopenadngfund. Wkhadootion of the calculated rates it is anticipated that the City will be able to meet all water enterprise fund obligations, including existing and potential debt service coverage requirements, and achieve otargeted reserve of20Y6ofannual revenues inevery year. Table 26 Projected Operating Fund Cash Flow nevenuesom Expenses 2015-16 Base 2016-17 a 2017-18 z 2018-19 s 2019-20 4 2020-21 s 2021-22 s Revenue Municipal Water Sales $6,521,112 $7,067244 $7,384,*8 $7,638,716 $7,903,258 $8,174870 $8,456,84* noWater Sales $eur*x $50,800 gsa.,z/ $56,e76 $59,e32 $62,642 $as'aas Other Revenue Sources $161,200 g1*3'736 $166.323 $1*8'e61 $171,652 $174,397 $177,197 Total Revenues $6,763,054 $7,281,/80 $7,604533 $7,8*4,353 $8,134543 *8,408,910 $8,699,70* Operating Expenses g5'002'770 $^zoy'eoo $5'281'831 $5'459'577 $s.a*a'y«r $5'833'351 $6,02e'809 Net Revenue before Debt Service and System Rehabilitation g4760'284 $2'171,874 $2'322,701 $2'404,776 $2,*941e6 $2.575'559 $2,669,895 Debt Service $617'059 $857,445 $z'o/z'ooz $1'*90.16* $2,05/'259 $'oso.aso $2.048.40* Debt Service Coverage [0 2.85 zss 1.82 z.m 1./1 1.26 130 System Rehabilitation $u $1,004,428 $1'154,/21 $1.159'613 $1'168.937 $1'175'200 $1'176.486 Additional Cash for c/pProjects $402'240 g1'933'647 $ax'ury $n $u $n $n Net Revenue $740y985 ($'623'6*7) <$az'oro> ($z*s'oou) ($os'ouo) ($54000) ($sss'uuo) Beginning Balance [2] $3,264,915 �005,900 $2,382,253 �245,174 $2,877,387 $2,764,848 $2,820,848 Net Revenue $740,985 ($1,623,647) ($13/,079) ($245,000) ($735,000) ($650,000) ($555,000) Transfer m(out) $0 $0 $0 $0 $0 $0 $o Add Back Rehabilitation Net ofup $o $o $o $877213 $622,462 $roomm $841,486 Ending Balance $4,005,900 $2,382,253 $2,2*5'174 $2,877387 $27*4,848 $2'820,848 $3,107,335 Target Balance [s] $1'352.611 $1.456.356 $1'520'e07 $1.572.871 $1.626'90* $1,681'782 $1'/39.941 Source: City mAshland and mz |qMinimum requirement of 1.20assumed PlBeginning balance asof'mly 1,2015, [3120% of operating revenues. Projected water fund balances are shown inTable 27.This table includes the capital fund which iofunded with SDCrevenues. Figure 13illustrates the historical and projected vvaterfundba|ance.ThevvaLerfundhobnceis City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page42 Figune13 Water Fund Balance $7,000,000 nmmnca/ �n,Water Fund Balance $4,000,000 $3,000,00 $2,000,000 s1,000,00 ;~ Table 27 Projected Water Fund Balance Projected 2015-16 2016-1/ 2017-18 2018-19 2019-20 2020-21 2021-22 Projected Cash Balances Base 1 2 3 4 5 6 opvmunu Beginning Balance $775,215 $1s16,200 g1,826,200 $1,721,200 $1,*76200 $741J00 $591,200 Revenues �,763,054 �281,780 �604,533 �864,353 �134,S43 $8,408,910 �699,704 svnen`as (gs'ozz'uae) ($8,e05'427) (g7,7*1,612) <$8.10e'353> ($8,869'5*3) ($e'058,910) ($9,254'704) TAP Contingency $o gn $u $u $u $u $u Transfer m(om) $u $1'933'6*7 $uu'u/s $o $n $504000 $sm\ouo Ending Operating Balance $1'516,200 $z'uzo'zoo $1'721'200 $1,476.200 $741,200 s591'200 $aa'mo System Rehabilitation Beginning Balance $2,*89'700 $2'489'700 $556,053 $523'9/4 $1'*01'187 $z'ozz'a*y $2'229.6:9 System Rehabilitation Revenue $o $1'004'428 g1'154,721 $1'159'613 $1'168'e37 $1'175'200 $1.176.*8* Revenue used for c/pProjects $o ($1.004'*28) ($1'15*./21) ($282'400) (g546'4/5) ($*as'zoo) ($aas.ono) Transfer /n(out) $o ($z'yas'am) <$az'uro> $o $u ($son'ono) ($snu.000) Ending Rehabilitation Balance $o,^xo'ruo $556,053 $523'974 $1'*01,187 $2.023'649 $2,229,649 S2,571.135 Total Operating Balance S4,005'900 $z,mz'zss $2.245'174 $2,877,387 $2,764,*48 $u'uzo.uxm $3,107'335 Capital Beginning Balance $1,943676 $991./16 $1'070'716 $z'naz.rzs $1'ns2'/16 $1'048,716 $1'0*4,/1e Add socRevenue [zl $100,000 $250,000 $zeluuo $260,000 $270'000 $274000 gzou'ouo Future Customers c/pp^xu ($z'osz.s*u) $u $o $u $o $u $o Debt Service $n ($zrz'oou) ($zay'uuu) ($zse.00u) ($274'000) ($274,000) ($274'000) Transfer m(oot) gn $u $o $u $u $u $u Ending Capital Balance $9*1'716 $1'070.716 $1.061'71* $1.052'716 $1.048'716 $1.044,716 $1.050,716 Water Fund Balance $*.oer'ozs $3,452'969 $a'ao*'uoo g3'930'103 $s.ozy.so* $z'oas'sa* $4,158'051 Source:xEC City of Ashland Water Rates Cost of Service Study March is, 2oi6 Page43 6'1 BILL IMPACTS Bill impact analysis isused todemonstrate the new rate structure and the redistribution of costs among customer types in Tables A-33 through A-41 forthe first year of rate increase, fiscal year 2016-17. The tables demonstrate that the new rate structure has the desired outcome on each customer group. Residential. Residential water bills would experience a small increase under the new rate structure due to the increase in revenue requirements and the reallocation of costs under the cost ufservice analysis (see Table A-33\. Commercial. Many commercial water bills would decrease under the new rate structure. The reduction in bills is also due to the reallocation of costs under the cost of service analysis. Larger meter sizes would be billed a greater portion of their total bill in flat monthly charges and would experience a total bill increase. Bill impacts are shown in Tables A-34 through A-37. Institutional. Institutional water bills would experience a slight increase in the winter months and a decrease in the summer months. Since institutional customers have a relatively flat demand throughout the year, with a slight peak in the spring months before the irrigation scasonbeKins,thisisappropriate.|nsLitutiona|bi||sfor2"ond4"custonnersaoeshovvninTab|ey /\-30and /\-39. Potable Irrigation. During peak summer months potable irrigation bills would increase. The rate design is intended to curb potable irrigation water use during the peak use months. During off- peaknoond1svxaterbi||svvou|dincneoscifnovvatervvoataken.ThisrefeuLsbi||ing the flat monthly charges regardless of whether water is used or not. For accounts using water, irrigation bills would decrease. The off-peak potable irrigation water rate encourages planting in summer and fall months when water supply is not a concern. Irrigation bill impacts are shown in Tables A'48and A-4l. 6.2 AFFORDABILITY TEST Under the calculated water rates for July 1, 2016, a Y4" meter single family home using 1,000 cubic feet in e month would pay $54.35,which is1.696ofthe estimated median household income for Ashland. The proposed water rates are affordable under EPA guidelines. These calculations are shown in Table 28. City of Ashland Water Rates Cost of Service Study March IS, 2oj.6 Page 44 Table 28 Affordability Test Annual Item Annual Increase Monthly Ashland Median Household Income [1] S43,500 2015-16Water Rates 3/4'using 1,OOOcu. ft./nno $621 $51.72 Current Water Rates aa96ufAshland K4H| 1'4Y6 3O1G-17Water Rates ]/4"usin81000cu. ft./mo Proposed Water Rates % of Ashland MHI $652 $54.35 Water Rates @I0%nfMH|[2] $87 $87 $7250 Source: USCensus. [1]20l45-yearAmerican Community Survey estimate. [2] Per EPA guidelines a water rate greater than I%is high and a water rate higher than 2.5% is burdensome. 6-3 COMPARISON OF WATER RATES Figure 14 illustrates what a household with a Y4" meter using 1,000 cubic feet in a month would pay for water in Ashland and several comparison communities as of August 1, 2015. Ashland's water rates are currently at the high end of the range and will remain at the high end of the range with the proposed rate increases. City of Ashland Water Rates Cost of Service Study March is, 2o3.6 Page45 Figure 14 Comparison of Single Family Monthly Water Bill Monthly Water Bill for 1,000 cubic feet $80 H0 Consumption Charge $70 M Service Charge $60 f $50 $40 j $30 1 $20 $p ... _.... ... ... _.... _.... Fayeaca e Po`' a �a l� ° C. F- �a�e gape Qr r\aOa PS P r\aca roc P5 a P Table 29 compares fiscal year 2015-16 water bills for a typical single family home using 1,000 cubic feet under the current and new rate structures, and projects the calculated water bill through fiscal year ending 2022. Per EPA guidelines1', water rates would be considered affordable through fiscal year 2021-22. Table 29 Calculated Typical Home Bill for 1,000 Cubic Feet Fiscal Year Ending Residential Charges 2016 2017 2018 2019 2020 2021 2022 current 1 2 3 4 5 6 Flat Charges Customer Charge $11.74 $12.19 $12.54 $12.89 $13.25 $13.64 Service Charge $23.50 $13.75 $14.27 $14.68 $15.10 $15.52 $15.98 Total Flat Charges $23.50 $25.48 $26.46 $27.21 $27.99 $28.78 $29.61 Use Charges Tier 1 per cu. ft. $0.0243 $0.0246 $0.0256 $0.0263 $0.0271 $0.0278 $0.0287 Tier 2 per cu. ft. $0.0299 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 Tier 1 Charges (300 cu ft) $7.29 $7.37 $7.67 $7.89 $8.12 $8.35 $8.60 Tier 2 Charges (700 cu ft) $20.93 $21.50 $22.36 $23.01 $23.68 $24.35 $25.07 Total Use Charges $28.22 $28.87 $30.02 $30.89 $31.80 $32.70 $33.67 Bill for 3/4" using 1,000 cu. ft. $51.72 $54.35 $56.48 $58.11 $59.79 $61.48 $63.28 Percentage Increase 5% 4% 3% 3% 3% 3% Source: HEC 10 "Affordability Assessment Tool for Federal Water Mandates", prepared for the United States Conference of Mayors, The American Water Works Association, and the water Environment Federation by Stratus Consulting, Boulder, Colorado, 2013. City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page 46 r 1 . • r • • � r Table A-1 City of Ashland Water Rate Study Historical and Budgeted Water Fund Revenues REVENUES 2009-10 actual 2010-11 actual 2011-12 actual Fiscal Year 2012-13 actual 2013-14 actual 2014-15 actual 2015-16 budget Charges for Service Water Sales Commercial $580,812 $603,874 $679,370 $762,567 $816,152 $892,585 $938,800 Fire Guard $14,880 $17,342 $18,434 $24,025 $29,845 $31,423 $25,500 Government & Municipal $174,795 $185,897 $201,809 $242,995 $266,409 $272,797 $278,900 Multi -Family Residential $479,996 $500,079 $562,916 $643,854 $671,343 $715,405 $777,900 Single Family Residential $2,439,336 $2,504,647 $2,781,220 $3,208,071 $3,473,458 $3,537,845 $3,843,100 Irrigation (incl. TID customers) $444,284 $419,039 $528,824 $609,199 $581,370 $624,453 $731,900 Subtotal Water Sales $4,134,103 $4,230,879 $4,772,573 $5,490,711 $5,838,578 $6,074,507 $6,596,100 System Development Charges $151,864 $180,604 $491,612 $266,196 $269,029 $328,414 $100,000 Connection Fees $0 $o $0 $0 $0 $0 $0 Temporary Service $0 $0 $0 $0 $0 $0 $0 New Service Installation $12,627 $18,086 $83,058 $29,262 $35,746 $50,837 $114,800 Miscellaneous $0 $1,290 $35,601 $27,587 $39,308 $38,580 $12,000 Subtotal Charges for Service $164,491 $199,980 $610,272 $323,046 $344,084 $417,831 $226,800 Other Revenues 1982 Water Bonds $46 $21 $24 $18 $24 $14 $0 1992 Water Bonds $54 $24 $28 $21 $28 $15 $0 Intergovernmental Revenue $99,928 $344,396 $336,811 $1,969,979 $89,747 $70,473 $14,000 Interest an Investments $22,991 $10,006 $16,598 $19,542 $32,527 $24,080 $20,400 Miscellaneous Income $34,154 $21,297 $9,318 $477,199 $17,154 $17,420 $0 Bond Proceeds $80,000 $550,000 $0 $2,547,791 $979,630 $744,916 $3,921,000 Subtotal Other Revenues $237,174 $925,744 $362,780 $5,014,551 $1,119,110 $856,917 $3,955,400 Total Revenues $4,535,767 $5,356,603 $5,745,625 $10,828,307 $7,301,772 $7,349,255 $10,778,300 Fund Balance $6,273,414 $5,208,591 Total Revenues $13,575,186 $12,557,846 Source: City of Ashland. revs Prepared by FIEC 140136 Model Final 3/15/2016 Table A-2 City of Ashland Water Rate Study Historical and Budgeted Expenditures by Water System Function EXPENDITURES 2009-10 2010-11 2011-12 Fiscal Year 2012-13 2013-14 2014-15 2015-16 SUPPLY Actual Actual Actual Actual Actual Actual Adopted Salaries & Wages $2,932 $11,664 $0 Benefits $235 $2,150 $0 Subtotal Personal Services $3,168 $13,815 $0 Infrastructure $0 $0 $800 $0 $135 $28,011 $0 Professional Services $7,442 $19,997 $23,211 $34,853 $54,508 $54,303 $229,600 Miscellaneous $109,916 $109,457 $113,392 $112,533 $140,783 $145,109 $151,050 Other $58,791 $61,459 $60,408 $63,664 $143,393 $104,638 $149,900 Subtotal Materials & Services $176,148 $190,913 $197,810 $211,050 $338,820 $332,061 $530,550 Capital Outlay $75,469 $108,186 $193,531 $59,501 $1,640,806 $2,491,193 $1,209,150 Debt Service $22,860 $23,147 $23,122 $21,416 $22,613 $22,174 $9,568 TOTAL SUPPLY $274,477 $322,246 $414,463 $291,968 $2,005,408 $2,859,242 $1,749,268 DISTRIBUTION Salaries & Wages $580,171 $562,250 $494,924 $537,596 $583,438 $654,405 - $635,000 Benefits $278,819 $275,600 $265,372 $301,271 $365,844 $378,422 $394,750 Subtotal Personal Services $858,990 $837,850 $760,296 $838,867 $949,282 $1,032,827 $1,029,750 Office $2,195 $1,480 $1,605 $4,120 $1,322 $1,252 $2,650 Small Tools $1,873 $2,961 $5,473 $3,503 $3,081 $5,545 $4,000 Uniforms - Clothing $1,928 $828 $810 $1,676 $3,961 $1,589 $1,500 Uniforms - Other $175 $1,769 $2,678 $404 $0 $1,339 $3,000 Technical $3,075 $2,788 $6,113 $859 $5,174 $5,433 $15,000 Chemicals $706 $307 $1,253 $2,516 $3,563 $111 $5,500 County Services $3,200 $4,000 $3,600 $2,800 $0 $3,200 $4,950 Other $0 $0 $0 $0 $0 $0 $15,000 Books & Periodicals $48 $82 $51 $89 $252 $111 $200 Subtotal Supplies $13,200 $14,215 $21,582 $15,967 $17,352 $18,582 $51,800 Fleet Maintenance $73,500 $73,500 $66,340 $66,340 $66,340 $66,340 $66,340 Fuel $24,692 $29,117 $27,218 $25,849 $19,338 $14,342 $28,000 Replacement $51,300 $51,300 $51,300 $51,300 $51,300 $51,300 $61,560 Electricity $28,771 $21,488 $22,101 $22,931 $31,322 $51,618 $60,000 Water $881 $460 $385 $0 $0 $0 $0 Wastewater & Other $0 $130 $0 $0 $0 $0 $300 Custodial $0 $9 $16 $0 $0 $0 $0 Disposal $0 $0 $0 $0 $0 $214 $500 Infrastructure $42,570 $43,741 $67,480 $91,824 $91,296 $73,007 $115,000 Subtotal Rental, Repair, Maintenance $221,714 $219,745 $234,838 $258,243 $259,596 $256,820 $331,700 Local $1,207 $1,178 $1,167 $1,222 $1,347 $1,353 $1,200 Long Distance $12 $15 $17 $16 $16 $18 $20 Cellular $1,577 $1,523 $1,961 $2,036 $2,428 $2,667 $3,700 Computers $0 $0 $0 $2,749 $3,085 $1,144 $2,500 Postage $188 $264 $628 $432 $1,459 $1,539 $2,000 Radios $0 $0 $0 $0 $0 $0 $1,000 Subtotal Communications $2,985 $2,981 $3,773 $6,456 $8,334 $6,721 $10,420 Professional Services $5,626 $1,113 $4,159 $20,679 $22,745 $33,767 $60,000 Physician/Health $0 $183 $0 $187 $0 $0 $0 Other $0 $0 $184 $244 $90 $39 $50,000 Subtotal Contractual Services $5,626 $1,296 $4,343 $21,110 $22,835 $33,806 $110,000 Prepared by HEC 140136 Model Final 3/15/2016 Table A-2 City of Ashland Water Rate Study Historical and Budgeted Expenditures by Water System Function EXPENDITURES 2009-10 2010-11 2011-12 Fiscal Year 2012-13 2013-14 2014-15 2015-16 Central Service $549,753 $549,753 $570,000 $632,000 $646,640 $659,530 $692,510 Insurance Service $35,760 $35,760 $34,900 $34,900 $34,900 $34,900 $35,600 Technology Debt $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Use of Facilities $125,883 $125,883 $80,000 $80,000 $80,000 $80,000 $80,000 Bad Debt Expense $6,204 $10,089 $7,894 $3,620 $22,504 $13,224 $12,000 Other $0 $0 $3,000 $2,111 $583 $0 $0 Licensing $5,546 $8,623 $8,423 $6,321 $10,965 $5,104 $37,700 Subtotal Miscellaneous Charges & Fees $773,147 $780,109 $754,217 $808,951 $845,592 $842,758 $907,810 Advertising $0 $0 $0 $0 $0 $1,875 $0 Air $0 $0 $0 $0 $0 $1,533 $3,000 Personal Vehicle Mileage $0 $0 $0 $284 $0 $0 $350 Lodging $0 $517 $0 $510 $0 $939 $2,000 Meals $0 $1,006 $0 $113 $0 $334 $350 Training $2,602 $423 $2,470 $1,655 $0 $89 $4,000 Dues $268 $1,082 $0 $0 $0 $0 $0 Medical & Laboratory $9,595 $10,710 $10,545 $11,563 $11,526 $12,567 $15,000 Subtotal Other Purchased Services $12,466 $13,737 $13,015 $14,125 $11,526 $17,338 $24,700 Franchise Tax $419,978 $342,525 $294,695 $356,283 $357,799 $372,200 $402,653 Capital Outlay $53,865 $72,088 $109,315 $84,197 $206,990 $104,317 $1,105,200 Debt Service $325,990 $330,336 $327,051 $137,064 $333,461 $329,340 $250,649 TOTAL DISTRIBUTION $2,687,960 $2,614,882 $2,523,125 $2,541,263 $3,012,767 $3,014,709 $4,224,682 TREATMENT PLANT Salaries & Wages $275,564 $298,719 $294,268 $312,259 $308,548 $332,754 $340,050 Benefits $112,364 $140,315 $134,534 $154,592 $158,437 $177,449 $197,320 Subtotal Personal Services $387,929 $439,034 $428,801 $466,851 $466,985 $510,203 $537,370 Office $2,330 $5,154 $5,196 $2,214 $1,544 $1,180 $2,000 Small Tools $798 $324 $463 $739 $559 $1,142 $800 Uniforms - Clothing $1,197 $454 $1,131 $805 $686 $2,084 $2,500 Uniforms- Other $245 $443 $774 $567 $60 $383 $500 Technical $12,154 $10,438 $9,766 $15,213 $20,128 $10,446 $22,000 Chemicals $147,418 $131,893 $111,049 $128,767 $157,280 $171,617 $220,000 Emergency Work ($12) $0 $0 $30 $0 $0 $0 Books & Periodicals $0 $140 $126 $186 $0 $170 $150 Subtotal Supplies $164,131 $148,846 $128,505 $148,521 $180,257 $187,021 $247,950 Fleet Maintenance $10,200 $10,200 $9,200 $9,200 $9,200 $9,200 $9,397 Fuel $3,211 $4,568 $6,255 $5,618 $9,846 $7,334 $6,500 Replacement $900 $900 $900 $900 $900 $900 $1,080 Maintenance ($750) $0 $622 $0 $0 $0 $0 Electricity $37,102 $38,965 $46,948 $33,378 $34,855 $38,552 $38,000 Custodial $170 $476 $26 $98 $86 $116 $1,000 Grounds Care $2,873 $988 $1,064 $79 $308 $266 $1,500 Infrastructure $9,023 $7,077 $11,042 $10,176 $4,871 $21,531 $15,000 Subtotal Rental, Repair, Maintenance $62,729 $63,174 $76,057 $59,450 $60,067 $77,898 $72,477 Prepared by HEC 140136 Model Final 3/15/2016 Table A-2 City of Ashland Water Rate Study Historical and Budgeted Expenditures by Water System Function EXPENDITURES 2009-10 2010-11 2011-12 Fiscal Year 2012-13 2013-14 2014-15 2015-16 Local $5,566 $5,485 $5,532 $5,651 $5,665 $5,661 $5,600 Long Distance $1 $0 $0 $0 $0 $0 $10 Cellular $477 $444 $262 $263 $252 $493 $500 Computers $0 $0 $0 $2,037 $960 $9,611 $2,500 Postage $5,408 $1,933 $221 $40 $217 $22 $3,000 Radios $0 $0 $0 $0 $0 $300 $100 Subtotal Communications $11,452 $7,862 $6,015 $7,990 $7,094 $16,087 $11,710 Professional Services $11,880 $580 $24,389 $7,701 $5,579 $1,080 $12,000 Other $72 $0 $0 $0 $0 ($1,600) $0 Subtotal Contractual Services $11,952 $580 $24,389 $7,701 $5,579 ($520) $12,000 Central Service $143,119 $143,119 $155,000 $155,000 $158,100 $161,200 $169,260 Insurance Service $8,030 $8,030 $4,000 $4,000 $4,000 $4,000 $4,080 Technology Debt $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 $28,200 Use of Facilities $137,235 $137,235 $100,000 $100,000 $100,000 $100,000 $100,000 Other $0 $0 $3,000 $2,111 $583 $0 $0 Licensing $1,155 $1,709 $7,850 $3,222 $1,194 $3,714 $4,700 Subtotal Miscellaneous Charges & Fees $317,739 $318,293 $298,050 $292,533 $292,077 $297,114 $306,240 Personal Vehicle Mileage $180 $0 $198 $261 $0 $142 $200 Advertising $0 $0 $0 $0 $0 $78 $0 Lodging $773 $813 $1,000 $1,117 $1,357 $2,064 $2,000 Meals $289 $180 $389 $380 $362 $188 $600 Training $4,253 $1,581 $1,280 $1,044 $1,015 $2,749 $2,000 Dues $70 $268 $81 $81 $166 $255 $270 Medical & Laboratory $17,425 $11,200 $11,886 $13,700 $11,261 $10,918 $19,400 Subtotal Other Purchased Services $22,990 $14,042 $14,834 $16,583 $14,161 $16,394 $24,470 Capital Outlay $79,183 $1,872 $4,145 $98,033 $50,388 $108,397 $2,226,690 Debt Service $231,260 $233,322 $233,146 $220,863 $235,320 $232,114 $436,211 TOTAL TREATMENT PLANT $1,289,365 $1,227,024 $1,213,943 $1,318,525 $1,311,928 $1,444,707 $3,875,118 FORESTINTERFACE Salaries & Wages $66,540 $130,770 $151,035 $146,031 $97,935 $92,753 $0 Benefits $32,822 $54,554 $65,010 $68,379 $52,657 $48,424 $0 Subtotal Personal Services $99,361 $185,324 $216,045 $214,410 $150,592 $141,177 $0 Other $120,486 $181,646 $268,098 $2,243,767 $423,446 $165,908 $0 Advertising $0 $465 $302 $900 $1,670 $1,280 $0 Personal Vehicle Mileage $0 $165 $94 $286 $48 $339 $0 Meals $0 $0 $0 $0 $48 $0 $0 Training $594 $658 $930 $463 $2,146 $2,605 $0 Forest Commissions $575 $858 $258 $258 $87 $130 $0 TOTAL FOREST INTERFACE $221,016 $369,116 $485,728 $2,460,085 $578,038 $311,440 $0 SDC REIMBURSEMENT Capital Outlay $38,321 $113,549 $96,007 $0 $0 $0 $0 Debt Service $82,297 $83,328 $83,240 $77,098 $81,408 $79,825 $34,443 Unappropriated - Other Financing $0 $0 $0 $0 $o $0 $0 TOTAL SDC REIMBURSEMENT $120,618 $196,877 $179,246 $77,098 $81,408 $79,825 $34,443 SDC IMPROVEMENTS Contractual $0 $413 $0 $1,600 $947 $27,093 $0 Capital Outlay $198,014 $48,370 $45,273 $30,537 $101,554 $34,419 $1,298,360 Debt Service $41,147 $41,664 $41,620 $38,549 $40,704 $383,799 $180,977 Unappropriated - Other Financing $0 $0 $0 $0 $0 $0 $0 TOTAL SDC REIMBURSEMENT $239,162 $90,447 $86,893 $70,686 $143,205 $445,311 $1,479,337 Prepared by HEC 140136 Model Final 3/15/2016 Table A-2 City of Ashland Water Rate Study Historical and Budgeted Expenditures by Water System Function EXPENDITURES Fiscal Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 CONSERVATION Salaries & Wages $73,475 $69,630 $49,841 $51,505 $77,643 $87,799 $105,240 Benefits $34,263 $34,852 $23,111 $22,385 $42,088 $44,734 $64,950 Subtotal Personal Services $107,737 $104,482 $72,952 $73,889 $119,731 $132,532 $170,190 Office $651 $511 $1,914 $231 $581 $536 $4,550 Small Tools $24 $27 $918 $13 $35 $78 $200 Uniforms - Clothing $47 $0 $148 $118 $0 $0 $200 Uniforms -Other $0 $0 $0 $29 $0 $0 $125 Technical $0 $0 $o $40 $0 $740 $800 Meetings $0 $50 $0 $29 $0 $156 $100 Books & Periodicals $16 $0 $224 $41 $0 $0 $100 Subtotal Supplies $739 $588 $3,204 $500 $616 $1,510 $6,075 Fleet Maintenance $300 $300 $270 $270 $270 $270 $270 Fuel $0 $126 $0 $57 $227 $58 $150 Replacement $5,790 $5,790 $5,790 $5,790 $5,790 $5,790 $5,790 Rental Charges $0 $42 $124 $122 $121 $121 $125 Subtotal Rental, Repair, Maintenance $6,090 $6,258 $6,184 $6,240 $6,408 $6,239 $6,335 Local $82 $0 $0 $38 $159 $160 $100 Long Distance $0 $0 $0 $0 $0 $0 $50 Cellular $112 $95 $94 $95 $214 $525 $0 Computers $0 $0 $756 $317 $0 $0 $0 Postage $0 $0 $36 $0 $0 $28 $100 Subtotal Communications $193 $95 $886 $450 $372 $713 $250 Professional Services $0 $0 $56 $0 $0 $8,271 $2,000 Central Service $23,625 $23,625 $23,700 $23,700 $24,170 $24,650 $25,880 Insurance Service $2,245 $2,245 $3,370 $3,370 $3,370 $3,370 $3,440 Use of Facilities $15,085 $15,085 $7,500 $7,500 $7,500 $7,500 $8,250 Subtotal Miscellaneous Charges & Fees $40,955 $40,955 $34,626 $34,570 $35,040 $43,791 $39,570 Advertising $333 $0 $2,113 $1,068 $290 $132 $1,600 Printing & Binding $36 $0 $0 $10 $16 $0 $200 Air $407 $241 $337 $610 $302 $1,538 $1,500 Personal Vehicle Mileage $22 $215 $0 $0 $106 $407 $500 Lodging $66 $1,050 $73 $715 $686 $1,363 $2,000 Meals $175 $488 $142 $222 $166 $295 $750 Training $811 $0 $1,220 $169 $779 $730 $1,000 Dues $508 $125 $440 $381 $783 $785 $700 Subtotal Other Purchased Services $2,358 $2,118 $4,324 $3,175 $3,128 $5,250 $8,250 Conservation Programs $16,982 $20,999 $23,539 $21,191 $17,884 $68,805 $114,500 TOTAL CONSERVATION $175,054 $175,495 $145,716 $140,014 $183,179 $258,842 $345,170 MISCELLANEOUS Interfund Loans $0 $0 $200,000 $200,000 $150,000 $0 $250,000 Contingency $0 $0 $0 $0 $0 $0 $170,000 Unappropriated $0 $0 $0 $0 $0 $0 $0 TOTAL WATER FUND $5,007,651 $4,996,087 $5,249,115 $7,099,639 $7,465,934 $8,414,076 $12,128,018 Source: City of Ashland. exps Prepared by HEC 140136 Model Final 3/15/2016 Table A-3 City of Ashland Water Rate Study Historical and Budgeted Water Fund Operation Expenditures Expenses Water Fund Operating Expenses Personnel Supplies Repair & Maintenance Communications Contractual Services Central Service Miscellaneous Charges Other Purchased Services Franchise Tax Conservation Programs Other Forest Interface Other Supply Costs Subtotal Operating Expenses Fiscal Year Adopted 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 $1,454,017 $1,566,691 $1,478,094 $1,594,018 $1,689,757 $1,830,555 $1,737,310 $178,069 $163,649 $153,291 $164,988 $198,225 $207,113 $305,825 $290,532 $289,177 $317,079 $323,933 $326,070 $340,958 $410,512 $14,630 $10,938 $10,675 $14,896 $15,801 $23,521 $22,380 $25,020 $21,873 $51,999 $63,664 $82,921 $95,860 $353,600 $716,497 $716,497 $748,700 $810,700 $828,910 $845,380 $887,650 $525,259 $532,316 $451,585 $437,887 $484,583 $483,392 $517,020 $96,604 $91,357 $92,581 $97,546 $172,208 $143,619 $207,320 $419,978 $342,525 $294,695 $356,283 $357,799 $372,200 $402,653 $16,982 $20,999 $23,539 $21,191 $17,884 $68,805 $114,500 $221,016 $369,116 $485,728 $2,460,085 $578,038 $311,440 $0 $0 $0 $800 $0 $135 $28,011 $0 $3,958,605 $4,125,137 $4,108,767 $6,345,190 $4,752,332 $4,750,855 $4,958,770 Capital Outlay $208,517 $182,146 $306,991 $241,732 $1,898,185 $2,703,906 $4,541,040 Total $4,167,122 $4,307,283 $4,415,758 $6,586,922 $6,650,517 $7,454,761 $9,499,810 Source: City of Ashland. op exp Prepared by NEC 140136 Model Final 3/15/2016 G C N O Ln N O N s cn Cr O N 9 CO m O N 00 a W ♦-1 1-4 N w O O d 0 0 0 0 0 0 a O O O d a V} Vt V} V? 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V) 41 C ++ VI 01J LL y +� 4+ ci bA m ,� �_ v L L ? i L (g (U Q V) > V) U 4 4- Ln vi n Ln i to o m a° c CO 4- Ln Q 0 O O O `—' O tA a) o w 14- x 0 LU a) O N m ro mm a) io� � o 000a � a x Ha V L. m N N N VL H O Ln cc 0 w Ln F Ln tn• ei th h o r1 I-i Lni Itil N Ln O � tr} N th O CD 0 O O O � O N U o Ln O m 0 tNr> 4, oCD h N Q) N O O C O O 00 Ln 0 00 N N tr} th U w = N c ci N o +�+ u n c o L N m E u (U v N a in r, 0 0 N Ln m z 0 D 1.0 m 0 r1 r.� C) 0 N tf1 N O O O O O O O O ti N s!? to t!)- vi to th tn• tn- m N w O c N v Z3 O 0 0 0 0 0 0 O E N i/} ih th tJ} tf} i1} tn� ih N � O � N L (3) Fa N_ N � O Ol tOl} tO!} tOn th t!h AA- iO/1^ o 4- 00 r-4 O iE N cu o O O O O O a o ' 00 C D- o N 4,� L O O O O O O O O 4- N h in to tn• tr.. tn 'u} In 4A O Z3 Q O � N av L C :3 LLL o O O O O O O o c C ei cm m m O Ln 0 O LA -i M Cff �t CND NO w 00 O It N N O N tN!} tNlf D av V N +� i O N Ln Ln N }Ln O � .O O r3 +N 0 M H -S] ,E aU t y l0 O c Q N H N 7 �` ry O all L O n O N T O T 41 a U W O L Ln L- � 07 +� a cn o L (U m (U Ya- tU aQ c) Qf .F 4- O -0 N Z3 Ln C6 (� 4+ 3 > Ln c > Q =a o O N O N L CO Q Q u `m Z a %- crs c� a a -a :3 '> -C .a t0 CcL C N Q7 j p�j 47 N •N Q U 4A all Q d+ Q} G f6 C L aY a6 (0 = u Ln 4- Q7 -O E 'a E N 'X Lu = -a a � G � N T — 41 O yr 5= O N O Ln - W M F u Lu LL CO n v Table A-7 City of Ashland Water Rate Study Estimated Debt for SRF Funded Facilities Item 2015-16 2016-17 2017-18 Total Treatment Plant 2.5 MGD Water Treatment Plant $1,043,370 $5,910,570 $6,087,870 $13,041,810 Contingency 10% $104,337 $591,057 $608,787 $1,304,181 Total Estimated Treatment Plant Cost $1,147,707 $6,501,627 $6,696,657 $14,345,991 Estimated Interest $24,561 $163,696 $307,004 $495,261 Annual Debt Service [1] $652,900 Total Payments $19,587,000 Principal $14,345,991 Interest $5,241,009 Crowson 11 Reservoir Tank $778,320 $3,223,980 $3,320,640 $7,322,940 Contingency (5%) $38,916 $161,199 $166,032 $732,294 Total Estimated Reservoir Cost $817,236 $3,385,179 $3,486,672 $8,055,234 Estimated Interest $29,175 $150,026 $274,500 $453,702 Annual Debt Service [1] $492,500 Total Payments $12,312,500 Principal $8,055,234 Interest $4,257,266 TOTAL SRF ANNUAL DEBT SERVICE $1,145,400 Source: City of Ashland. srf [1] Terms assumed: Plant Tank Interest 2.14% 3.57% Years 30 25 Assumes projects completed by October 2017 and first debt payment is due Dec 1, 2018. 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J L L L O E E E U U U co N r-i m Ln O N Ln Cil al c L ra ai A O ra a-+ a a� L O (U ra c Z5 c c tU b.0 N a Wh r-i a N N m 7E c w a, -a 0 (0 m 0 0 �r r, rM- TmbleA'0 City ofAshland Water Rate Study Cost of TID Non -Potable Water Deliveries TID Total Annual Cost Costs Contracted Water City Maintenance Costs [1] Canal Depreciation T|DStaffing and Materials Costs [2] Total Annual Cost Estimated Cost Typical Delivery [3] Cubic Feet Acre Feet Total Use a 24/463/405 562 SOU Use [4q b 7,101,590 163 UthiaPark Use [41 c 1,020,495 23 Remaining TlDIrrigators d=a-b-c 16,341,220 375 Source: City of Ashland and HEC. tid calc [1]See Table A-11.Costs shown are 73%ofthe total costs in2O13 see Table A-12. [2] Estimated finance and public works departments time and materials costs to manage T.I.D. agreements, billing and customer service. [3]Under the 1924,1926,and 1935contract the City can take upto769acre feet inatypical year for any purpose. The City also has an agreement with TID for an additional 600 acre feet for municipal purposes. On average, City TID customers use 73% of the 769 acre feet contract and the City municipal customers use the 600 acre feet contract. See Table A-12. N1 Uses water consumption from the last non -drought year (2Ul2). Prepared byHEC 140136K8odd Rna|3/l5/zUz6 Table A-11 City of Ashland Water Rate Study TO Canal Maintenance Costs Cost 2013 2014 Man Hours 1205 1411 Labor Cost $33,076 $30,753 Equipment Cost $8,098 $33,671 Total Cost $41,174 $64,425 Source: City of Ashland. tid maint Prepared by HEC 140136 Model Final 3/15/2016 TaNeA-12 City mfAshland Water Rate Study Actual T|UNon-Potable Water Deliveries (Past 18Years) Year Total Acre -Feet Municipal Use Spill to Creek Irrigation Use 1924, 1926 & 1935 Contract Irrigation Use as %ufContract All Figures /nAcre Feet 2004 751.71 0.00 123.75 627.96 769.00 82% 2005 478.57 0.00 123.75 354.82 769.00 4696 2006 659.93 0.00 123.75 536.18 769.80 70Y6 2007 560.14 8.00 123.75 436.39 769.00 57% 2808 726.56 0.00 123.75 602.81 769.00 7896 2009 742.90 224.24 123.75 394.91 769.00 51% 2010 818.73 0.00 123.75 694.98 769.00 9096 2011 755.37 0.00 123.76 631.62 769.00 82% 2012 731.81 8.00 123.75 608.06 769.00 79% 2013 981.49 205.15 123.75 652.59 654.00 10096 2014 1,173.94 565.44 123.75 484.75 654.00 7496 Average Excluding Drought Years NQ 561f0 769.00 73% Source: Talent Irrigation District. tid deliv [1]TDmeasurements. [21 City measurements. [3]|n2O13and Z014T|Dcurtailed the amount allowed tu054acre feet. [Q Excludes drought years 2009, 2013, and 3014. Prepared byHE[ l4OIaoModel Final 3/1s/Zn16 c .0 m to v 4w m ' U to 41 m E m m CL ce 0 CD 0 m m —i (n w m r- rq 0 't cm co 0 Nw ro 06 06 Lr� Vl- ke V)- N N -(n th V). -JS. 4-6. 0 m cli lzt Q0 0 m R* vt r14 C) r14 m 0 co Ln M m w C-4 'i C?i ,zf -Ln -,hto In C'4 N to 44- I.A- V- CD N M M Z0 t 00 w 110 U) 110 0) N C-4 -Ln k6 0 0 mr- P. 0 m m cT co �q M lqr 0 0 Ln ro -V} 00 tr, r,� P� 4 ri- 4.11. 0 0 M Ln Zt Ln V-4 0 �t m rl� 0 cif' two N r- IH V)- co N V-). ryi vi- VII, -J'J- 4.*,)- cli k 0 t.0 a M r-I Ln r14O r4 m 0 m r-• P� Ln I-i trl to to 4.11. 0 I'D rl m --i r4 Ln m Q0 -I rq 0 C14 r.. N M V. t/)- d N vl- 4 r4 4-*,)- 4-01- 0 IZI- -1 Ln 'T LM N C14 'T -1 P. 0 -1 r1l V�- V'� rq r-j -L� ij"� �4 0 Ln -q en sv 0 0) Ln (4 41 L- (U 41 — tou Lo o 41 L L W 4� 4� Ln 0 L- (3) CL to C (2) 0 4� 0 41 Ln NU F- 0 u U 0- CL 76 4a 4- Ln 41 C 0 0 z Ln < 0 (1) U: 0 u u.1 0 6 Table A-14 City of Ashland Water Rate Study Calculation of Functional Allocation Revenue Requirement Operating Expenditures BUDGET 2015-16 Allocation Basis customer Meters & services Capacity Commodity Unclassified with addition of SUPPLY TAP water Salaries & Wages $0 Avg. of Classified 0% 0% 0% 0% 100% Benefits $0 Avg. of Classified 0% 0% 0% 0% 100% Infrastructure $0 Plant In Service 9% 2% 74% 15% 0% Professional Services $229,600 Avg. of Classified 0% 0% 0% 0% 100% Miscellaneous $151,050 Avg. of Classified 0% 0% 0% 0% 100% Other $149,900 Avg. of Classified 0% 0% 0% 0% 100% Capital Outlay $1,209,150 Plant In Service 9% 2% 741/ 15% 0% Debt Service $9,568 Peaking Month Use 0% 0% 55% 45% 0% TAP Water $44,000 Utilities 0% 0% 0% 100% 0% TOTAL SUPPLY $1,793,268 DISTRIBUTION Salaries S, Wages $635,000 Avg. of Classified 0% 0% 0% 0% 100% Benefits $394,750 Avg. of Classified 0% 0% 0% 0% 100% Office $2,650 Customers 100% 0% 0% 0% 0% Small Tools $4,000 Peaking Month Use 0% 55% 0% 45% 0% Uniforms - Clothing $1,500 Plant In Service 9% 2% 74% 15% 0% Uniforms -Other $3,000 Plant In Service 9% 2% 74% 15% 0% Technical $15,000 Peaking Month Use 0% 55% 0% 45% 0% Chemicals $5,500 Peaking Month Use 0% 55% 0% 45% 0% County Services $4,950 Customers 100% 0% 0% 0% 0% Other $15,000 Avg, of Classified 0% 0% 0% 0% 100% Books & Periodicals $200 Customers 100% 0% 0% 0% 0% Fleet Maintenance $66,340 Peaking Month Use 0% 55% 0% 45% 0% Fuel $28,000 Peaking Month Use 0% 55% 0% 45% 0% Replacement $61,560 Peaking Month Use 0% 55% 0% 45% 0% Electricity $60,000 Utilities 0% 0% 0% 100% 0% Water $0 Utilities 0% 0% 0% 1001/ 0% Wastewater & Other $300 Utilities 0% 0% 0% 100% 0% Custodial $0 Avg. of Classified 0% 0% 0% 0% 100% Disposal $500 Plant In Service 9% 2% 74% 15% 0% Infrastructure $115,000 Plant In Service 9% 2% 74% 15% 0% Local $1,200 Customers 100% 0% 0% 0% 0% Long Distance $20 Customers 100% 0% 0% 0% 0% Cellular $3,700 Customers 100% 0% 0% 0% O-A Computers $2,500 Customers 100% 0% 0% 0% 0% Postage $2,000 Customers 100% 0% 0% 0% 0% Radios $1,000 Customers 100% 0% 0% 0% 0% Professional Services $60,000 Avg. of Classified 0% 0% 0% 0% 100% PhysicianjHealth $0 Avg. of Classified 0% 0% 0% 0% 100% Other $50,000 Avg, of Classified 0% 0% 0% 0% 100% Central Service $692,510 Customers 100% 0% 0% 0% 0% Insurance Service $35,600 Customers 100% 0% 0% 0% 0% Technology Debt $50,000 Peaking Month Use 0% 55% 0% 4S% 0% Use of Facilities $80,000 Peaking Month Use 0% 55% 0% 45% 0% Bad Debt Expense $12,000 Plant In Service 9% 2% 74% 15% 0% Other $0 Customers 100% 0% 0% 0% 0% Licensing $37,700 Plant In Service 9% 2% 74% 15% 0% Air $3,000 Customers 100% 0% 0% 0% 0% Personal Vehicle Mileage $350 Avg. of Classified 0% 0% 0% 0% 100% Lodging $2,000 Avg. of Classified 0% 0% 0% 0% 100% Meals $3S0 Avg. of Classified 0% 0% 0% 0% 100% Training $4,000 Avg. of Classified 0% 0% 0% 0% 100% Dues $0 Avg. of Classified 0% 0% 0% 0% 100% Medical & Laboratory $15,000 Avg. of Classified 0% 0% 0% 0% 100% Franchise Tax $402,653 Utilities 0% 0% 0% 100% 0% Capital Outlay $1,105,200 Plant In Service 9% 2% 74% 15% 0% Debt Service $250,649 Peaking Month Use 0% 0% 55% 45% 01/ TOTAL DISTRIBUTION $4,224,682 TREATMENT PLANT Salaries It Wages $340,050 Avg. of Classified 0% 0% 0% 0% 100% Benefits $197,320 Avg. of Classified 0% 0% 0% 0% 100% Office $2,000 Customers 100% 0% 0% 0% 0% Small Tools $800 Peaking Month Use 0% 55% 0% 45% 0% Uniforms - Clothing $2,500 Plant In Service 9% 2% 74% 151/ 0% Uniforms -Other $500 Plant In Service 9% 2% 74% 15% 0% Technical $22,000 Peaking Month Use 0% 55% 0% 45% 0% Chemicals $220,000 Utilities 0% 0% 0% 100% 0% Prepared by HEC Page 1 of 2 140136 Model Final 3/15/2016 Table A-14 City of Ashland Water Rate Study Calculation of Functional Allocation Revenue Requirement BUDGET Meters & Operating Expenditures 2015-16 Allocation Basis Customer Services Capacity Commodity Unclassified with addition of til Emergency Work $0 Peaking Month Use 0% 55% 0% 45% 0% Books & Periodicals $150 Customers 100% 0% 0% 0% 0% Fleet Maintenance $9,397 Peaking Month Use 0% 55% 0% 45% 0% Fuel $6,500 Peaking Month Use 0% 55% 0% 45% 0% Replacement $1,080 Peaking Month Use 0% 55% 0% 45% 0% Maintenance $0 Peaking Month Use 0% 55% 0% 45% 0% Electricity $38,000 Utilities 0% 0% 0% 100% 0% Custodial $1,000 Avg. of Classified 0% 0% 0% 0% 100% Grounds Care $1,500 Avg. of Classified 0% 0% 0% 0% 100% Infrastructure $15,()00 Plant In Service 9% 2% 74% IS% 0% Local $5,600 Customers 100% 0% 0% 0% 0% Long Distance $10 Customers 100% 0% 0% 0% 0% Cellular $500 Customers 100% 0% 0% 0% 0% Computers $2,500 Customers 100% 0% 0% 0% 0% Postage $3,00o Customers 100% 0% 0% 0% 0% Radios $100 Customers 100% 0% 0% 0% 0% Professional Services $12,000 Avg. of Classified 0% 0% 0% 0% 100% Other $0 Avg. of Classified 0% 0% 0% 0% 100% Central Service $169,260 Customers 100% 0% 0% 0% 0% Insurance Service $4,080 Customers 100% 0% 0% 0% 0% Technology Debt $28,200 Peaking Month Use 0% SS% 0% 45% 0% Use of Facilities $100,000 Peaking Month Use 0% 55% 0% 45% 0% Other $0 Customers 100% 0% 0% 0% 0% Licensing $4,700 Utilities 0% 0% 0% 100% 0% Personal Vehicle Mileage $200 Avg. of Classified 0% 0% 0% 0% 100% Lodging $2,000 Avg. of Classified 0% 0% 0% 0% 100% Meals $600 Avg. of Classified 0% 0% 0% 0% 100% Training $2,000 Avg. of Classified 0% 0% 0% 0% 100% Dues $270 Avg. of Classified 0% 0% 0% 0% 100% Medical & Laboratory $19,400 Avg, of Classified 0% 0% 0% 0% 100% Capital Outlay $2,226,690 Plant In Service 9% 2% 74% 15% ❑% Debt Service $436,211 Peaking Month Use 0% 0% 5S% 45% 0% TOTAL TREATMENT PLANT $3,875,118 CONSERVATION Salaries & Wages $105,240 Avg, of Classified 0% 0% 0% 0% 100% Benefits $64,950 Avg. of Classified 0% 0% 0% 0% 100% Office $4,550 Customers 100% 0% 0% 0% 0% SmallTools$200 Peaking Month Use 0% SS% 0% 45% 0% Uniforms - Clothing $200 Plant In Service 9% 2% 74% 15% 0% Uniforms -Other $125 Plant In Service 9% 2% 74% 15% 0% Technical $800 Peaking Month Use 0% 55% 0% 45% 0% Meetings $1()0 Customers 100% 0% 0% 0% 0% Books & Periodicals $100 Customers 100% 0% 0% 0% 0% Fleet Maintenance $270 Peaking Month Use 0% SS% 0% 45% 0% Fuel $150 Peaking Month Use 0% 55% 0% 45% 0% Replacement $5,790 Peaking Month Use 0% 55% 0% 45% 0% Rental Charges $125 Peaking Month Use 0% 55% 0% 45% 0% Local $100 Customers 100% 0% 0% 0% 0% Long Distance $50 Customers 100% 0% 0% 0% 0% Cellular $0 Customers 100% 0% 0% 0% 0% Computers $0 Customers 100% 0% 0% 0% 0% Postage $100 Customers 100% 0% 0% 0% 0% Professional Services $2,000 Avg. of Classified 0% 0% 0% 0% 100% Central Service $25,880 Customers 100% 0% 0% 0% 0% Insurance Service $3,440 Customers 100% 0% 0% 0% 0% Use of Facilities $8,250 Peaking Month Use 0% 551/ 0% 45% 0% Advertising $1,600 Customers 100% 0% 0% 0% 0% Printing & Binding $200 Customers 100% 0% 0% 0% 0% Air $1,500 Customers 100% 0% 0% 0% 0% Personal Vehicle Mileage $500 Avg. of Classified 0% 0% 0% 0% 100% Lodging $2,000 Avg, of Classified 0% 0% 0% 0% 100% Meals $750 Avg. of Classified 0% 0% 0% 0% 100% Training $1,000 Avg. of Classified 0% 0% 0% 0% 100% Dues $700 Avg. of Classified 0% 0% 0% 0% 100% Conservation Programs $114,500 Utilities 0% 0% 0% 100% 0% TOTAL CONSERVATION $345,170 TOTAL OPERATING EXPENDITURES $10,239,238 $1,382,804 $391,007 $3,901,763 $2,102,184 $2,460,480 Unclassified Expenditures Reallocation $437,448 $123,694 $1,234,316 $665,022 Total with Reallocation $10,238,238 $1,820,252 $514,702 $5,136,079 $2,767,206 Revenue Requirement Allocation Percentages 18% 5% 50% 27% Source: HEC. fee, [1] For allocation of plant in service see Table A-14. For allocation of peaking month use see Table 4. Prepared by HEC Page 2 of 2 140136 Mucci Final 3/15/2016 u m O. m U m LL 0) O O M Ln M m 0 LD O to w O r• V1 M m h m to Ct c m 0 00 1-1 m 00 m mIt rt o r. ',I d- .1 r ri W m m r\ o a N m rr01 Q1 Ol � O ct CT CO d' h N d' V1 00 l0 Ch 0l cj 0 R O It m m 1-1 00 m O m w l,o m Ln co N UJ m h O N w M N ri V} Ln c-i m Ln 00 t0 m N 00 m o O Ln w t 00 O Ol N 1-1 1-1 h m tt} 00 1-1 N i/)' N tJT Ln e-1 m t/} V)- V}-La tom/} O O O M O h o m Ln m O O O hh Ln M m O O m N V)- O 00 ri V} m tf? d' 00 rI V)- V? 'V} d' ri CO r-1 tt? V} Cp 00 d' M 0) h It o w N d' 00 co m m N Ln Lr m Lfj r• rl 00 N G 0� O O ri ri th t!} N CO rl m O h Ln 00 rl t!} t!} t!} vlT rl N rl Ln h CO 00 th th in Ln 0 0 O O Ln W 0 0 0 ei O N 0 0 0 0 0 r• m N m V} o V} V} m 00 to ih tr} N V? 00 d' V)- V? VT in- W m cY w d' It M K-i rl m t` ^ oLn m Ln � N 00 00 It 14 try to to tr> Lfl cl a � Ltf LG r- 0 Ln It [h to ri th N N ih � tn- 0 0 O O O O M o N rr m O O O O m 0 0 0 ct m o th th t!} V} V} -LaCl)V} to Ln C) V} V). i1� to rN V} tf? tt} m 00 N W M N tD CO N [t Ln (N 00 CO l0 m rl m N Ln m N w N th t/} In t4 i!? d> O o 0 o 0 o m o Ln O w O O O O O O o W O o V). tf? th th V} i!} t!? if} O t � Om O N N 0 COD Q1 tf? t!} m Q1 00 r rl N th in ill 0 0 0 0\\\ o 0 0 0\\\\ o 0 0 O O OOOCDCOC O o o O O O O O O O O o O o O O O O O O O O O O O O O ri c-' rl ri rt rl ri ri rI rI ri ri e-i rl ri rl rl ri O Ln O O 0 Ln Ih o 0 h O �-i rI c-1 ri rl o oN 0 0 0 000 000 0 ri ri r{ rl o � o O Ln O Ln O N o N r-i ci o \ o O O O O Ln N rl c W o � W Q O L d ,y.N C iQl-+ +N-+ @ rQr-I O i -G t/f N C G Zi O O O to N Ln Q ,N Q O O co 0� tJ.I 'o _ c 1 c � (U O?i O m i tYo C W M +' '� ? .0 m N O } N Q3 = O O. e@ .V QS .Q u E@ u if 0 co U3 TableA-16 City ofAshland Water Rate Study Number mfBilling Meters %of Customer TOTAL SF MF 2/4" 90.1% 7,814 6,723 444 332 179 19 117 1^ 5.996 509 256 68 108 61 16 O 1.5" 1.9% 167 11 51 64 35 G O 2" 1.7% 145 2 35 45 40 22 0 3" 0.2% 21 O 4 4 7 6 O 4" 0.2% 14 U 4 2 2 6 O 6" 0.0% 3 O O U I l O O" 0.0% 1 O O O O 1 O Total 200J0% 8,673 6,99E3 606 555 325 77 117 Source: City vfAshland. meters Prepared byHcC 14ozaVModel Final 3/1s/2Oz6 Table A-17 City of Ashland Water Rate Study Typical Water Consumption by Meter Size by Customer Type Meter Size/ Consumption (2014 Data) Customer Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 3/4" Figures in Cubic Feet Residential SF 486 460 428 448 550 795 1,073 1,178 1,136 955 678 483 8,187 Residential MF 839 826 813 896 1,057 1,572 1,715 1,733 1,548 1,260 943 851 14,054 Commercial 892 850 767 940 1,077 1,472 1,703 1,773 1,518 1,309 993 856 14,148 Institutional 300 318 352 400 480 791 1,326 1,086 896 1,143 711 378 8,180 Irrigation 297 347 163 533 1,467 2,913 3,503 3,581 3,010 2,099 914 238 19,064 ill Residential SF 478 469 474 774 877 1,479 1,948 1,779 1,553 1,318 638 506 12,293 Residential MF 1,242 1,326 1,073 1,223 1,316 1,923 2,171 2,004 1,754 1,534 1,208 1,033 17,809 Commercial 1,258 1,213 1,006 1,322 1,638 2,420 2,513 3,081 2,828 2,141 1,449 1,258 22,127 Institutional 1,010 805 591 856 961 1,176 1,029 983 1,017 1,118 977 634 11,157 Irrigation 234 704 970 718 2,547 3,314 4,647 5,037 3,775 3,014 858 500 26,317 1.51, Residential SF 636 594 522 848 1,142 1,699 2,308 2,314 2,265 1,525 1,145 1,156 16,154 Residential MF 2,697 3,479 2,856 3,052 3,511 4,579 4,859 5,116 4,968 4,307 3,773 3,142 46,339 Commercial 2,401 2,227 2,316 3,080 3,757 5,231 6,141 6,234 5,329 4,922 3,518 2,646 47,804 Institutional 1,976 1,818 2,222 1,338 7,820 2,048 1,665 847 797 692 2,650 870 24,743 Irrigation 414 322 308 1,922 4,713 8,614 12,982 13,984 11,558 8,031 1,719 840 65,407 2" Residential SF 963 260 680 550 613 1,210 1,703 2,533 3,210 2,450 1,687 630 16,490 Residential MF 10,187 10,694 9,899 11,196 12,200 20,561 22,593 20,322 19,732 15,615 12,704 12,281 177,984 Commercial 5,734 7,046 6,603 7,748 8,205 10,157 12,221 12,657 11,344 9,747 8,280 6,964 106,707 Institutional 6,145 10,434 9,260 8,995 19,053 15,680 16,262 14,952 9,444 10,082 10,929 8,452 139,689 Irrigation 640 377 506 8,343 11,538 20,023 22,624 23,745 19,845 15,143 7,106 2,996 132,884 3" Residential IVIF 14,005 15,605 13,263 11,863 15,288 23,425 21,040 19,945 21,543 22,723 21,983 19,908 220,588 Commercial 17,618 15,500 16,216 17,592 22,458 36,710 35,242 34,500 31,320 28,940 23,784 20,630 300,510 Institutional 3,518 8,547 7,499 7,241 9,906 12,434 10,264 9,852 9,912 8,154 6,711 5,177 98,214 Irrigation 6,910 1,200 1,400 2,735 41,146 36,502 62,480 85,750 49,291 62,530 7,330 580 357,854 4" and greater Residential MF 30,753 38,173 36,985 42,868 48,143 66,950 60,238 56,803 53,973 46,845 56,272 38,135 576,134 Commercial 13,250 10,500 9,750 19,000 38,000 35,250 57,750 53,000 55,500 41,500 30,250 23,250 387,000 Institutional 19,699 25,883 22,005 16,579 20,048 24,384 16,585 13,043 16,731 23,835 23,206 17,993 239,989 Irrigation 0 467 667 14,000 55,500 70,327 66,111 123,030 122,227 86,404 1,576 0 540,309 Source: City ofAshland and HEC. use by site Prepared by HEC 140136 Model Final 3/15/2016 Table A-18 City ofAshland Water Rate Study Bill Tabulation for Rate Design - Residential -Winter Total Use to Total Use uf Cumulative This Block of Potable Cumulative mUo Use ofBills Bills Passing Percent xvate, a|uok ai|Vnc Bills through Stopping in Stopping in Through Cumulative Cumulative custon,e, Limit unu, Block Block a|uuk Block Billed Usage Billed Usage Master Metered Zero Use 164 4'920 n u o o o% Tier aoo 2'072 4,/56 407'86e 40/'866 805,200 1'213'066 ss% Tier 1,000 2'525 2'684 1'221.745 z'sze'so zse'oon 1,788'611 97% Tier 2'500 zsz zss 200'941 1'830'552 17,500 1'848.052 z00% Tier > 2'500 7 7 22'156 1'852'708 o z'osz'/on zonm Total 4,920 1,852,708 Single Family Zero Use 1,660 56,630 o o o o o% Tier soo 18,399 54,970 3'204,856 3,204,856 14971,300 14,176156 47m Tier 1,000 30,748 za's/z 16,592'584 19,/97,440 5'823'000 25,620'440 866 Tier 2,500 *'148 5,823 7,328,780 27,126,220 1,687,500 28,813'720 90a Tier ` 2,500 675 *75 2'740988 29'867,208 o 2e'867.208 znnm Total 56,630 29,867,208 Source: City of Ashland and HEC. smaller bill tab Table A-19 City wfAshland Water Rate Study Bill Tabulation for Rate Design ' Residential 'Summer Total Use to Total Use of Cumulative This Block of Potable Cumulative m|b Use ufBills Bills Passing Percent Water Block aiUiox aiUsd,mugh aoppingm Stopping in Through Cumulative Cumulative Customer Limit unnz Block a|ou' Block Block Billed Usage Billed Usage Master Metered Zero Use *n 2,160 n n o n o% Tier som 481 2,3e5 97'968 e7,e68 574,200 672,168 41m Tier z'nou 1'454 z'sz« 832'ee8 930,966 460,000 1'390'e66 os% Tier 2,500 428 460 584,380 1,515'34* 80,000 1'5e5'346 yo% Tier a'soo za 37 67'452 1,582'/98 sz'«no 1,615'198 ss% Tier , a'soo y s 47,668 1,630,466 n 1,630,466 100% Single Family Zero Use 543 28,315 o o n o o% Tier aoo 4,704 27'7/2 794,582 794,582 6,e20,400 7,714,e82 24% Tier z'000 11,461 za'nsa 6,e51,500 7,746.082 11,607,000 19,353'082 az% Tier 2.500 8,941 11,607 14,0e0'337 21,80e'419 6,665'000 28,471,419 89X Tier 3,600 1'684 z'000 4,966,874 26,773,2e3 s'sas.zoo 30,308,*93 ys% Tier ` a'aoo soz eoz 5'185'537 31'958,830 o 31,e58,830 z00% Tota| 28,315 31,958,830 Source: City of Ashland and xEC. restab Prepared by HEC Bill Tab Analysis Final 3/15/2016 m i= T II � � m O Y F- .�i C a U n. m m m m m n It m m h h n m m m H N V N N Lit m M F- o 0 0 o o 0 Oo o o v C) o o ao m a o o o 0 0 0 0 0 0 O O O al V1 Ln O h n o o o a) rn m m o rn m m m ornrn co aa)cam m rnmrn m F- E O N u o o 0 0 0 0 0 0 0 G oho to W m N n V Ohl w W a WOW W 10 d' W N '.. ''..,. N .h-1 C N a t-I' H M m ri Ln m m �o In W W Lo W m ti �o n cr o o m m m o m w co m m h a f- tNti lla�-1 o W Ilin c-I o N cD m G lo' V N u ri o) a-i .-i O' e-i m o m m y N m m en ID Lo a w 'o u N O N a1 to W n a 'r m m rn m u w m 4 ern d' n m ri m m vi co oo co m m't o � rco N. m t o o 1-41 oS o n h o N M N m n w u' O N O ci lD N W h N of U N m O IliC O Lr L!O ) co ON O a) Um'Y C' h tmtf r, c-i m o m' d' oo N N H N It to ID N w Lfl N co N O lD co Ln 'T W N m m ih O N N ci Ili ri -i M ',. H co r N W co al n N a--1 M tD f� M' o W n LA h' oo ri ri' rn i ei N N a o o U O m' m C1 0 0 'u o 0 L!5 V L(1 In O l N N N' N m N o O o Y U N o L1 O O O O O ci ri -1 a -I cc r O O O o y O O m m o o m m O m a -a a v a a acL v a a m h a£ s v a rio m un 0 t6 to C m C a at0.� (a C a. V N F- n 4 Table A-21 City of Ashland Water Rate Study Bill Tabulation for Rate Design - Non -Residential Current Cumulative Total Use of Cumulative Total Use to Potable Bills Bills Use of Bills This Block of Percent Water Block Billing through Stopping in Stopping in Bills Passing Cumulative Cumulative Customer Limit Units Block Block Block Through Block Billed Usage Billed Usage Irrigation 0 0 0 0 0 0 0 0% Zero Use 0 1,700 4,080 0 0 0 0 0% Tier 1 50,000 2,327 2,380 10,314,213 10,314,213 2,650,000 12,964,213 88% Tier 2 > 50,000 53 53 4,422,250 14,736,463 0 14,736,463 100% Total 4,080 14,736,463 Commercial Zero Use 0 S19 7,306 0 0 0 0 0% Tier 1 50,000 6,774 6,787 16,932,837 16,932,837 650,000 17,582,837 99% Tier 2 > 50,000 13 13 781,010 17,713,847 0 17,713,847 100% Total 7,306 17,713,847 Institutional Zero Use 0 121 1,032 0 0 0 0 0% Tier 1 50,000 887 911 13,388 13,388 1,200,000 1,213,388 40% Tier 2 > 50,000 24 24 3,012,632 3,026,020 0 3,026,020 100% Total 1,032 3,026,020 Source: City of Ashland and HEC. nonres bill tab Prepared by HEC Bill Tab Analysis Final 3/15/2016 TaNeA-22 City nfAshland Water Rate Study Bill Tabulation for Rate Design ' Commercial Proposed Cumulative Total Use of Cumulative Total Use to Potable 8i|b Bills Use nfBills This Block of Percent Water Block 8UUnD through Stopping in Stopping in 8iUy Passing Cumulative Cumulative Customer Limit Units Block 8|nch Block Through Block Billed Usage Billed Usage Commercial <2" Zero Use 460 6'586 O O O 0 U% Tier 2'500 4,851 6,126 3'074'096 3'074,096 3,187'500 6'261'596 61% Tier > 2,500 1'275 1'275 7.209'373 10'283.309 0 10,283,369 100% 6.586 10.283,369 Commercial 2+" Zero Use 59 720 O U 0 O 0% Tier 15,000 472 651 1'889,458 1'989,468 2,835,000 4,824,458 6556 Tier > 15'000 189 189 5,441,010 7,430'478 U 7,430,478 100% 720 7,430,478 Source: City of Ashland and *EC, comm tab Prepared yv*sc Bill Tab Analysis Final a/1s/2u1a aJ W :2 0 z 41 W Ln = (u 41 m 41 CU (U 4U u 41 LU D GJ GJ GJ 00 E = u 4+ QJ r_ Qj aJ Ln L .(u co w = E cu u 0 ia r-i 0 C*14 110 r-i .1 1-0 l--O 10 ol ol 0) 0 00 m It co 10 .-I �001 100, 0 0 0 0 0 0 r-I 1--i i ( 0) 0 00 a) I:zT 00 fl, 0 CY) lzT r14 k.0 W 0 dt (U (L) ryi LL. -i Ij r\ 0 rl r- 00 M m 00 r-i cl n rlO � (N It 00 r I IZ Lr) N cr) r--� I-z o 0 0 42 0 CD 0 0 0 0 I - I 0 0 0 Ln Lr) Lr) CL GJ E E 0 u 0 O. 0 zs 45 cr r Li CL eq 4' u aJ 0 E 0 -0 > V) 4' 0 0) Ln co m II-i Ln L.0 (.0 i Ln lo (D m co -0 rti 4, mst of r» LA. 00 M QO r-I u (D 00 GJ CY) cD LO r-j co CD o 0 0 Ln 0 r1l Ln + v N ai u u a) E E E E 0 0 u u u 0 -0 E Ln 76 ii co I—" _C) -Q o 0 0 0 0 0 0 N CD 00 00 to Ln M N = Ln c--i to e-i c i co O Q0 1--1 N to td Ln P% Ln f71 d' N h m 0 m Ln 00 M N to m 0 Ln d' O Ln O 1--1 00 h Ln oo d' r• ivj ri 'ct' L6 ri r-i CD cr 00 00 O 'r to h rn m m �zr O Ln m co N ri m o IZr Ln Ln o Ln o r tD 41 Ln Ln Ln w N 00 ri N r1 N N e-i ri d' tD O r� 00 Ln O r• N w M 00 00 rl -i h Ln Ln 1-1 M O R* Ln -1 h O dt m 00 6f Ln O Ln 00 LT h CO Cfs h tit N O d i d 0) Cr h d m ri m to Ln r-i O N M N Cr ri 0) h O N M N O N ri ri N w N 00 ri N ri N N 4- ri r-i 4) r, co Ln m 00 ri 00 0) N 00 O u- 0) O O N m Ln ri m N Ln 00 V 0) -1 ri 00 O m N O CP 00 N F) o Ln r cy r- 00 & C ci a Z3 Lf) r-i Lo N d' 00 Ln CD 00 w Ln U m Ol N r; to LD O Ln 00 N ri C: O O ri O h m Ln h M a - h N ai -i N rI M M n r-i ri N L =3 h ci 00 CD I�r 00 N Ln Ln w ri bA r. 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M V)- m ri N t/} •V)• Lf) m m St d' r-i N Ln 110 N N O W O It N N ct d lD N N N 00 O m N W N N ct r-i try tn• m o r i V)' try N th •N? 0o d' O W Ln CO W N 1,D O -i W W -zt m L.O N W m l0 M rr ONO r4, W W m Ci N (ri LLnn �m-i .�-I N th -La I O Ln ON d r-- O O �t O m -i O N cr tD O rn O ri co 'i m O ri ri r, w O N Ln r. z-I +n r-i to 1-i in. N to N th i/} (n W It m r•- IT N w M m rn Ln Ln N rn N (D O r Co m M ri ct ri r-I ri N ri to th tJ? m Ln ri O N m r- it Ln m W O m m �t o m W m ct N O O Lf) N m Ln N w p �t rNi I N O iJ? O m N It ri --I O <-i W M LD M M" N N N d' N a e-i 00 m m Ir r-i m Ln m m m r-i ri i/} N M in- tv-, in. . tD Ln o N a m w N r-i rn m 4 w Ln r1 O m O ri m ri W Ln N LO Ln ct 00 o O Ln r-i m m o 6) M r-i r1 V)- N m in- th t!} N m ct It m N N w o LO .t--I -I ` H w CLi 06 Lf) r` 00 r- to tD a dT O W 4 w (` N r1 ci in• N rh to to th t/h o Ln 0) N d d O 00 co co tD LnNi o ri c-L O a} L (6 H N O U v N Lam+ 76 t6 (6 V f N N .T O U N_ E E + 1 cc v v H v 4� a fII u L 0 v N p U C _ — — — E n ° •a-' '� E Y 4 Ln a i t t L O v :�, O V O O v E E D+ Eu E E V .L� `°�„ dA O O u U h U E— (.o Ln m Lo -i Ln W a) N d' () w m ri rn 00 t10 m N -t' W N t0 m o N rr O O M m N f,,) th tn- (14 to N tn, m '> tn• 4A W ct lD It c--I O 1:t Ln Co m Ln w m W m It m w rr L•D ri Ln o m rr ri rn N rn m N m M t/� N to N -L > LD to N :i .(/I 4 A Ln N O W c W -i m L.D O W m N N m d• Ln w to Ln a t rrw N O N m Ln 00 rH m th N N V1.. •L4 L.O Ln V)- 4 t/l- i/S• t0 N O m rh m W N Ln N Ln Ln l0 W W Ln Ln 0 Ln 06 N Ln c-I (r Ol Ln M o M O m m to N to s--I to LD L4 d' d V)- t/} d m N N O d Ln W N O O 0) LQ W lzt O Ol N W N d' t>7 (T M N r-I t0 N fy to t!} in. to r-i O Ln W m W O O w N ri O It N 110 (o O O N N d' O 07 6) Izi W W W Ot Ot W N M th c-i th ri th Ln t/} O d^ iJ}• i/} O) N m N m W M 1-i l0 N M N ri N W m d O m r-i ct O d Lf1 r-i W W N lzt 0f 0 l0 hl ri ri Ln h U a o o 10-0 a o 0 m N Ln m d O 'o ri O aA O M 4. (u O V C6 L O G7 (U N _ iA = v N m m M U 41 s ° 0 Lam" U a E E •N E E +O t)n 0 0 CC u U = = H 0 E E 0 Table A-30 City of Ashland Water Rate Study Calculation of Share of Maximum Day Water Use by Customer Category Non - Coincident Average Maximum MM/AM MID Peak Max Daily % of Avg. % of Peak % of Max. Customer Type Month Use Month Use Ratio Ratio Use Month Month Day (AM) (MM) a b c=bla d(below) e=d*(bl3l) f=altotala g=bltotalb h=eltotale Residential cu. ft. cu. ft. cu. ft. Master Metered 1,233,889 1,807,603 1.46 2.22 129,200 12% 10% 10% Single Unit 5,399,033 9,066,113 1.68 2.54 742,780 51% 53% 59% Non -Residential Commercial < 2" Commercial 2" or larger Institutional 842,679 1,311,138 1.56 2.00 84,453 8% 572,439 815,422 1.42 1.83 48,085 5% 522,097 734,827 1.41 2.17 51,378 5% 8% 7% 5% 4% 4% 4% Irrigation 2,093,565 3,461,986 1.65 1.82 203,140 20% 20% 16% Total 10,689,965 17,248,262 1.61 1,259,036 100% 100% 101% Master Comm'l. Comm'l. Calculation of MD Peak Factor Metered Single Unit < 2" 2" + Institutional Irrigation MM/AD Factor 1.46 1.68 1.56 1.42 1.41 1.65 System MD/MM Production Ratio [11 1.10 1.10 1.10 1.10 1,10 1.10 Weekly Usage Adjustment 1.38 1.38 1.17 1.17 1.40 1.00 Calculated MD Peak Factor 2.22 2.54 2.00 1.83 2.17 1.82 Source: City of Ashland, AWWA M1 Manual, and HEC. peaks [1] Calculation: 2010 2011 2012 2013 2014 Average Maximum Day (MG) 5.88 5.36 5,14 5.95 4.80 Maximum Month (MG) 158.29 152.00 149.87 170.48 137.17 Average MGD in the Max. Month (max. day / 31) 5.11 4.90 4.83 5.50 4.42 Ratio of Max. Day to Avg. in Max. Month 1.15 1.09 1.06 1.08 1.08 1.10 Prepared by HEC 140136 Model Final 3/15/2016 Table A-31 City of Ashland Water Rate Study Potable Water Irrigation Peak Cost Allocation Calculation Potable Water Only Month All Water Irrigation cubic feet January 5,698,647 25,023 February 5,903,155 19,250 March 5,395,848 34,123 April 6,737,313 352,456 May 9,004,008 1,158,194 June 13,874,124 2,148,917 July 16,364,166 2,862,767 August 16,915,748 3,451,333 September 14,895,165 2,740,545 October 12,225,379 2,146,283 November 7,481,362 458,953 December 7,819,658 43,004 Total 122,314,573 15,440,848 On Peak 62,049,203 11,203,562 Peak as 1 of Total 51% 73% Source: City of Ashland. irr peak Prepared by HEC 140136 Model Final 3/15/2016 S E v o ra-9 Q a) ci P-- ma. M= Ui 4 4 4 M 1* -:C4 r w m N Ln W 0 m w 0 'IT w C-i NC» t� rvi L� Lit iwn *n 1 .0.1. r,�,. ".0 1 V"', In, -ni , o/)- V"'I- I* 'W"ll I'V'l Itn VII ui 6 Li ri o6 4 N 6 a; t\ ui 4 c-i 4 rV M V). if" VII V)- vi- in V�. -Ln V). 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RESOLUTION NO. 921� A RESOLUTION ADOPTING A SENIOR CITIZEN UTILITY DISCOUNT PURSUANT TO SECTIONS 14.04.030, 14.08.035 AND 14.16.030 OF THE ASHLAWD MUNICIPAL CODE, AND REPEALING RESOLUTION NO. 92-18. THE MAYOR AND CITY COUNCIL OF THE CITY OF ASHLAND DO RESOLVE AS FOLLOWS: SECTION 1. Senior Citizen Utility Discount. If the applicant has met all of the requirements of the Ashland Municipal Code, the City shall, beginning with the next billing cycle after the date of the application, discount the total amount billed for water, sewer and electric service, not including connect fees, reconnect fees and similar charges. The amount of discount for the applicant's own residence shall be twenty-five pere nt (25%) thirty percent for water""' and electric and sewer bills If the applicant's household income does not exceed the poverty guidelines of the Federal Community Services Administration, or fifteen pereent (15%) twenty percent for and electric sewer bills if the applicant's household income does not exceed one hundred twenty-five percent of the poverty guidelines of the Federal Community Services Administration. in speeial hardshlp eases, a eemmittee ef twe (2) Geldneil meTabers and the Senior Pregra Bireeter, fftay grant emeeptiens te the ineeiae iimitatie where the eireumstanees justify sueh exeef�t�� SECTION 2. The effective date of this resolution is July 1, 1992. SECTION 3. Resolution No. 92-18 is repealed. SECTION 4. Three (3) copies of this Resolution shall be maintained in the office of the City Recorder and shall be available for public inspection during regular business hours. The foregoing Resolution was READ and DULY ADOPTED at a regular meeting of the City Council of the City of Ashland on the 5th day of May, 1992. Nan E. franklin City Recorder SIGNED and APPROVED this -day �oveda� ty"orm: Jfp�_ /) , Wul Nolte City Attorney (d:\counciL\resos92\senutiL.dsc) of Mav, 1992. f-Catherine M. Golden Mayor �1 ky, LED 0nJanuary J[2O24the position of City Manager will be vacant. The Mayor & Council will need to determine how they would like to proceed with filling that vacancy post January 31, 2024. POLICIES, PLANS & GOALS SUPPORTED Values: Excellence in governance and City services. BACKGROUND AND ADDITIONAL INFORMATION Direction on how to move forward with filling the City Manager is outlined in the City Charter. ARTICLE VUl-ArCITY MANAGER SECTION 2. Amajority ofthe Mayor and Councilors must appoint and may remove the City Manager. The appointment must be made without regard to political considerations and solely based on education and experience with local government management. SECTION 3. The City Manager may be appointed for a definite or an indefinite term and may be removed at any time by a majority of the Council. The Council must fill the office by appointment as soon as practicable after the vacancy occurs. SECTONl When the City Manager iotemporarily disabled from acting onmanager orwhen the office becomes vacant, the City Council must appoint a manager pro tem. The manager pro tem has the authorityand duties cfCity Manager, except that a manager pro tem may appoint or remove department heads only with City Council FISCAL IMPACTS The City Manager position has been budgeted for and HR has funds to retain a professional recruiting firm if so desired. HR also has the internal resources to run the recruitment process. DISCUSSION QUESTIONS l\ Does Mayor and Council wish hoappoint opro tenland when? 2) Does mayor and Council wish to make an appointment of a City Manager for a definite or indefinite term? page/of 2 3) Should the City hire a recruitment firm to oversee the recruitment process? 4) When would the City Council wish to start the recruitment process? SUGGESTED NEXT STEPS Option A) Give staff direction to hire a recruiting firm to begin the process of recruiting a new city manager. Option B) Give staff direction to prepare internally for the Human Resources Department to oversee the recruitment. Option C) Identify a pro tem and begin discussions on filling the position including timeline. Option D) identify a pro tem and postpone discussion of permanent replacement to a future date. Option E) identify an appointment and begin contract discussions. Option D) Postpone discussion and decision to a future date. Due to the upcoming Council calendar, staff recommends a decision on at least a pro tem be made at the January 16th City Council Business Meeting. REFERENCES &ATTACHMENTS Ashland City Charter Article VIII-A-City Manager Page 2 of 2 ARTICLE VIII-A - City Manager Section 1. The office of City Manager is established as the chief executive and administrative head of city government. The City Manager is responsible to the Mayor and Council for the proper administration of all city business, The City Manager will assist the Mayor and Council in the development of city policies and will carry out policies established by ordinances and resolutions. Section 2. A majority of the Mayor and Councilors must appoint and may remove the City Manager. The appointment must be made without regard to political considerations and solely based on education and experience with local government management. Section 3. The City Manager may be appointed for a definite or an indefinite term and may be removed at any time by a majority of the Council. The Council must fill the office by appointment as soon as practicable after the vacancy occurs. Section 4. The City Manager must: 1. Attend all Council meetings unless excused by the Mayor or Council; 2. Make reports and recommendations to the Mayor and Council about the needs of the city; 3. Administer and enforce all city ordinances, resolutions, franchises, leases, contracts, permits, and other city decisions; 4. Appoint, supervise and remove all non -elected department heads and other city employees, except as follows: a. The Ashland Parks and Recreation Commission shall have responsibility for appointing, supervising, and removing its employees, subject to state law, Ashland Municipal Code, written mutual agreements between the City Council and Ashland Parks and Recreation Commission, and formal, written City administrative policies. b. Employees who report directly to the Mayor and City Council shall be appointed, supervised, and removed by the Mayor and City Council and shall be termed appointive officers. 5. Organize city departments and administrative structure, except that the City Manager shall have no responsibility for the supervision of the City Attorney's Office or the Ashland Parks and Recreation Commission; 6. Prepare and administer the annual city budget; 7. Administer city utilities and property; 8. Encourage and support regional and intergovernmental cooperation; 9. Promote cooperation among the City Council, staff and citizens in developing city policies and building a sense of community; 10. Perform other duties as directed by the City Council; and 11. Delegate duties to any city employee, in a manner consistent with the provisions of the City Charter, the Ashland Municipal Code, state and federal employment law, and collective bargaining agreements. Section 5. The City Manager has no authority over the Mayor or City Council or any other elected official, or the City Attorney. Section 6. The City Manager and other employees designated by the City Council may sit at Council meetings but have no vote. The City Manager may take part in all City Council discussions. Section 7. When the City Manager is temporarily disabled from acting as manager or when the office becomes vacant, the City Council must appoint a manager pro tem. The manager pro tem has the authority and duties of City Manager, except that a manager pro tem may appoint or remove department heads only with City Council approval. Section 8. Neither the Mayor nor a member of the City Council shall directly or indirectly, by suggestion or otherwise, attempt to influence or coerce the City Manager in the making of any appointment or removal of any officer or employee or in the purchase of services and supplies; nor attempt to extract any promise relative to any appointment from any candidate for City Manager. Nothing in this section shall be construed, however, as prohibiting the City Council from fully and freely discussing with or suggesting to the City Manager anything pertaining to city affairs or the best interests of the city. Section 9. No person related to the City Manager by consanguinity or affinity within the third degree shall hold any appointive office or employment with the city, except with the express approval of the City Council. Section 10. This Article VIII-A shall be effective on January 1, 2021, if approved by the electors of Ashland in a primary or general election prior to that date. The individual employed as Ashland City Administrator on the effective date of this ARTICLE VIII-A shall be the City Manager as described above and shall remain so employed until such time as he/she resigns or is terminated by the City Council. The position of City Administrator is abolished. (Charter amendment 05-19-2020) 1. Overview of Water, Management and Conservation Plan (WMCP) 2. Summary of major elements of Ashland's WMOP and pUblic involvement process 4. Next steps lilxm11 11V1x-p�IM, e Oregon Admii ds-Urative IRLfles 690-086 * MCPS Updated every 1 0 years e PDepreviOLIS WMCF1 OVE.-,d by Oregon Water Resources artment in ��3 a MACi") pertains tO USSE) of: s"tored water iri [.-ost Creelk Reservc,)irermit S-54337 0pr,)m'b"Ly to re-evaIkjate conservation prograrri, obtain PtANic in�rpu' , and onsidEir dirnate change impacts or) water tesources GSa Water Solutions, Inc. Water Management and Conservation Plan Overw * Descriptions of-u 1--Hst,ork,,a� water' SUPP�' va'Jorrr�ea,'SLE,'es arld mi Wat&,,- cl�t,irlaflrr'ient �,"flan I ll 11 i'-i (I a ] t S"', li 1) 1� y a 1-� a III ys i s )j M�i t(z',, r (I e, ri""i a, d p rc, ' E 3 GS1 Wafer SOILIU011S, Inc. 4 Public Involveirnent in WMCP Development e 6-�rnember Managemerit Advisory (`Ian,i�niittee �d e e (I f jr (,c' r p r, v d" e i ur�Ip g C) III I� f t W M C 1, "1 reviewed by Gkrnate and Policy Adv��sory Cornniittee of W M C"III III ste,'', an City website for II [)hc iriIpuL M WqLor SoluLlons, Inc. Annual Water Demand 1,400 1,200 0 0 M M M GSII Mal Solukins, Inc. 6 GSO Water Solutions, Inc. Government (66 Services), 3.4% Municipal (187 Services), 4.0% Irrigation (325 Services), 14,0% 7 Commercial/Residential (33 Services), 0.4% ngle Family (7,406 Services), 49.1 % GS9 Water Solutions, Inc. 8 Monthly Water Consumption —80 70 c 60 .2 0-50 E ,40 0 30 U 2�120 10 0 0 �O CO �2 �2 C2 �2 CD C, CD CD 0 CD N N N . . . 0 r6 N 0 0 0 Ln z cn Z n z in z Ln Z —Single Family Commercial Irrigation . .. ... Municipal ,"""--Commercial/Residential GS11 Water Solutions, Inc. Water Loss Loss := Demand Consumption @ 2022: Large leak contributed to loss 7.2% 9.3% 9.9% 9.3% 14.1% I M Water Solutions, Inc. 10 I Mit IIM�V' W N III *AsliIII nd's current IIprogranri exceeds req[ArE..1lierits e Broad at'ray of c(Imserva-flor"i measures fitc") fli i, t �i a E)('.�� L-ec,'hrikaIf azssistar"ii . ce (E,,,g"Z'D'', asslstarlce (e.g. rebates), al'"id OL]treac"'["i (eg. Advisory Coni ni i L tee aind City staff deveIbped a loriority list of conserva tion rneasuresto help exIli a� Id or enhance program as resoi.irces allow GS6 Water Solutions, Inc. 11 Establish a five-year testing prograrn for master meters by 2025 and begin testing these meters in 2026 * Maintain existing level of public education programming, with modifications over time to accommodate shifts in priorities and available resources * Within two years, begin performing irrigation system evaluations at City parks * Within two years, provide financial incentives for irrigation contractors to install water - wise landscapes a Within two years, provide water efficiency grantsh to install water efficient fixtures to low- income residents e Over the next two years, consider revising commodity charges to make more progressive * Continue prornoting graywater and rain catchment systems * Within the next five years® consider studying a potentially feasible large-scale reclaimed water use Drolect 5 sta ges of a I e rt -to a d d ress ra ri ge of potential water supply shortage events ,*Triggers for each stage CUrtailment rrieasures for each stage, progressively more stringent e Nignment with Medford Water Commission Stage 1: Least Severe Stage 5Most Severe </'��Waler �Shar�tage Sp�vedty 13 CLor'tailment Starve Trigger bcample Curtailment Measure Examples Voluntary measures Early Awareness of the a City to limit water main Stages potential for water flushing supply shortage 0 Limit landscape irrigation Mandatory measures Demand mayor will 0 Limited use of irrigation Mid -Stages reach or exceed system to certain day of week capacity 0 Cease water distribution system line extensions Mandatory measures 0 Implement temporary Final Stage Near system or full rate surcharges system failure 0 Customer usage limited to basic health and safety needs uw u t u toe d e rn a n d P ro o f" d e rn a r"i (IJ cz i "'10 1',iorizor�,�is P .y ,moAclidr,"essed pro,,jected h"n�j,,)ac-,t,,,,s of chrirete cl-�&r"'ige *CondUcted by Oregon Clirriate G�,,iange lResearch hnSti"LLI ll,,els David eAssessed iirqpacts to 2-073 o n 1-011 'L......... . . \A/a-Ler sy! E GSI Water Solutions, Inc. 15 15 m N J F M A M J J A S 0 N D Derinand Projections 1,177 722 3.22 5M. .1-80 23,611 137 1,243 763 3.40 &09 1.79 24,,710 1.38 1,320 808 3M 6.41 1.77 25,942 139 1,396 852 3.82 6.71 1.75 27,164 141 1,471 895 4.03 TOO 1.74 28,379 14-2 GSII Water Solutions, Inc.;. 18 Decade Month 2021 — 2030 2031 — 2040 2041 — 2050 2051 — 2060 2061 — 2070 2071 — 2080 Jan 20% 28% 38% 50% 80% 94% Feb 13% 26% 45% 61% 83% 88% Mar 9% 18% 30% 35% 45% 42% Apr 5% 7% 6% 1% -.6% -19% May -7% -17% -29% -42% -52% - 1% Jun -21 % -4 % -51 % - 5% -71 % -7 % JUI -15% -•32% -36% -47% -45% -49% Aug -.4% -6% -8% -9% -8% -8% Sep 5% - % -3% -10% -8% -9% Oct 2% 2% -1 % -12% -21% -13% Nov 14% 19% 26% 26% 31 % 36% Dec 25% 36% 51% 55% 74% 87% G a6 Water Solutions, Inc. 19 1600 1400 1200 c� 1000 Eo so 0 400 200 2047 Projected TAP 2021 Actual TAP Volume: 1,000 AF Volume: 550.6 AF o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N N M1I N N N N Ashland Creek Natural Flow and Reeder Reservoir TAP — — — Forecast Annual Demand, 2023 - 2072 ACtual Annual Demand, 2011- 2022 GSB Water Solu[ions, Inc. 20 Climate Change Analysls:� Summary of Results C I i rn a te ch&�ige is projected 1,"o increase cj&rna�ids DI"'OUgh''t will cor 'i tinLie to have fl,'ie 1�)rgest III,. on sq,)ply a�'-id den-ind corred to dirnate cliange * T']�'�'�iese factur's are ex�,-)ected to: seasor i c 'tc ta I pea k s e a s c� II 11 c a s e s [-'i � a r ',s r E, a i1ce or)� frm"IriV I-ost. (01-eek ResE,�,rvoir over dr,")r)E"� (M Watef sojutjon�, Inc. Supply analysis, * Condusion M 'E'!�et Lost Dtygahr� ftffl s 00C ", AN he a( I I" (e r ell (,-�,'Z3 E� r V 0 r w a t e r g ii 011, (""Yf sc)a,,�Irces of s�-q,')pII' a�pproprk',-qle- I(") rl"'ieet RJU.fl"E(J e r"r a,',,q �-i d s M Water Solutbris, Inc. 22 Draft WMCP,to (ID e c e rri b e r) i� affeated" locaD goveiron i-ner"i ts * [Iraf t W M C to OW IR [D J a ri u a r,y) ''D * OWIRI,,) comr,nents incorporated in WMC[ (es'L, NA a rc h) I Inal order issued I )y OW1 (es L, May) GS1 Water Solutions, Inc. 012 Resources Currently potential Level of Effort to Recommended Correlate wl Measure Major Benefits Major Barriers Measure Available I time, for Water Implement & Timing Of Measure Basis of Potential for WMCP Status' budget, staff) via Reduction' Maintain Implementation 4 Source Water Reduction' Conservation IGA with Medford Section Water" On the City's ' at? conservation City's 2018 water savings wellpage, cross- Merges and cost-effectiveness referenceFite mutually beneficial City does not have a Partially in Advisory 'a� analysis (DSS) model ranks Outreach & Adaptive Londscaping landscaping staff position to process Not currently High High Short-term S Committee Education and Outreach as Education IFAL) information from techniques Update wellsite providing high water wwwfia e adaptedrashl savings relative to other and.org measures modeled. City does not have a DSS model ranks Education Re -instate utility bill • Low effort staff position to For Advisory and Outreach as providing Outreach & conservation HiSh visibility lead implemen- Yes High High Short-term Committee high water savings relative Education newsletter communication tation to other measures efforts modeled, City does not have a DSS model ranks Education Increase social inertia Low effort staff position to For Advisory and Outreach as providing Outreach & presence High visibility lead implemen- Yes High High Short-term Committee high water savings relative Education communication tation to other measures efforts modeled. City's web5ite should Easy -to -access City does not have a For DSS model ranks Education be easier to find resource for staff Position to implemen- Yes High High Short-term Advisory and Outreach as providing Outreach & information about FAL Customers update welasite tation Committee high water savings relative Education to other measures modeled DSS model ranks Education Expand kids None initially For and Outreach as providing Outreach conservation page on Expands outreach in' plemen- Not currently High High Short-term City staff high water savings relative City website identified Lotion to other measures Education modeled. From: 01 To: C , L(-QL,.V)Ci 1 0 UIL gig'LICH COUVICH 11-1 . .............. ........ Subject: Comments from Larry Cooper on the WMP Date- Monday, November 20, 2023 5:44:19 PM [EXTERNAL SENDER] In case I'm not able to step up to my laptop in the middle of dinner to deliver my comments, here's the text: For November 20, 2023 meeting I'm Larry Cooper and I served on the Water Management Plan advisory committee. I think there is consensus from the community that the WMP should be adopted, but we also agreed that more needs to be done towards increased future water conservation by the city and its water users. 1. It has been 3 years that Ashland has been without a water conservation specialist 2. We have taken advantage of part time water conservation services from the Medford Water Commission during that time 3. It's time for Ashland to prioritized water conservation once again so that we can be prepared for the coming water supply changes that are described in the WMP. Here is why Ashland must again pursue an aggressive water conservtion program: First, We know from the WMP that our water supply during peak season demand will be declining in the future and at the same time there will be some increased demand from growth in the community. Secondly, Ashland is looked to as a regional leader in water conservation, along with the Medford Water Commission, and it makes sense, given our strong history in creating and implementing an effective water conservation program, that we should lead in this area going forward. Third, Ashland is part of an intergovernmental Agreement that provides for sharing water among the various munitipalities that have water rights to Lost Creek, so it is in our interest to promote water conservation both here in Ashland as well as throughout the communities of the Bear Creek watershed. The benefit to having a strong water conservation program is that when water emergencies like droughts and fires occur in the future, which we know they will, we will be more resilient with our water supply and distribution system. The water management plan provides clear support for stronger water conservation measures going forward. The City of Ashland needs to support water conservation with a budget and a plan for recuiting, hiring, and maintaining a qualified water conservation specialist for our community. THIS ACTION IS CALLED FOR BY THE CEPAC AND OUR CEAP! Also, there has been strong evidence gathered by community organizations such as the Ashland Climate Collaborative over the last 3 years that there is both demand and need for more City of Ashland support for community members who are ready to save water and use water more wisely. We just need more guidance and support. THIS FORM IS A PUBLIC RECORD ALL INFORMATION PROVIDED WILL BE MADE AVAILABLE TO THE PUBLIC THOSE INTERESTED IN GIVING ORAL TESTIMONY AT A COUNCIL MEETING WILL NEED TO: 1) Complete this form, including the topic you want to speak on and send to the City Recorder: a:s 2) Begin the oral testimony during the meeting by stating your name for the record. 3) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 4) If you present written materials, please email a copy of the materials with this form to the City Recorder for the record. 5) Speakers are solely responsible for the content of their public statement. Meeting Date Agenda topic/item number/Topic The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. THIS FORM IS A PUBLIC RECORD ALL INFORMATION PROVIDED WILL BE MADE AVAILABLE TO THE PUBLIC THOSE INTERESTED IN GIVING ORAL TESTIMONY AT A COUNCIL MEETING WELL NEED TO: 1) Complete this form, including the topic you want to speak on and send to the City Recorder: r:xai qho:Tu�el�s:�rt,h��.�hd.md��!7z� ��lu'lax��e.i.�a-.us 2 Begin the oral testimony y during the meeting by stating your name for the record.. 3) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 4) If you present written materials, please email a copy of the materials with this form to the City Recorder for the record. 5) Speakers are solely responsible for the content of their public statement. Meeting Date Agenda topic/item number/Topic��.�£� .� The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland.