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HomeMy WebLinkAbout2023-12-04 Study SessionqCouncil Study Session Agenda ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, December 4,2023 Council Chambers, 1175 E Main 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 Utility Rates Overview 3. Electric Master Plan Overview 4. 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 SUMMARY At the August 1, 2023, City Council meeting, Council approved a contract with Stoddard Power Systems to complete an Electric Master plan for the Electric Utility. As part of that approval, the Council requested a study session with Stoddard to discuss Council's vision and expectations for the plan. POLICIES, PLANS & GOALS SUPPORTED • Quality infrastructure and facilities through timely maintenance and investment • Implementation of the Climate and Energy Action Plan BACKGROUND AND ADDITIONAL INFORMATION The team at Stoddard has been working on the plan for a few months now. This study session should provide an opportunity for them to brief the Council and staff on progress to date and offer Council the opportunity to give input on items Council would like to see addressed. FISCAL IMPACTS There are no fiscal impacts currently. The original contract approval in August was for $78,159. DISCUSSION QUESTIONS 1. How far along is the process, 30%, 50%, etc.? 2. Have there been any glaring issues found or needs for immediate capital investment? SUGGESTED NEXT STEPS REFERENCES & ATTACHMENTS August 1, 2023, Council packet materials for this item Page 1 of 1 Vt Council Business Meeting Agenda Item Contract for an Electric System Master Plan with Stoddard Power Systems, LLC From Thomas McBartlett III I Electric Utility Director Item Type Requested by Council 1:1 Update El Request for Approval Z Presentation 1:1 Approval isbeing requested toenter into ocontract for onElectric System Master Plan otocost of$78]58I)O. 4fonno|oornpetitkmaou|mdpropoao|/RoquestforPropoao|\isLhenaquineduourcingrnmthodforonouquinidon of this type (Personal Services) greater than $75,000.00. The City's intent is to award a contract to the highest ranked proposer, Stoddard Power Systems, LLC. POLICIES, PLANS & GOALS SUPPORTED Climate Energy Action Plan execution Quality infrastructure and facilities through timely maintenance and community investment BACKGROUND AND ADDITIONAL INFORMATION 4formal RRP(Request for Proposal) was facilitated, and the City received three (3)proposais in response to the RFP. The proposals were evaluated in accordance with the evaluation process and criteria outlined in the RFP and the City's intent is to award a public contract to the highest ranked proposer. In accordance with AMC 2.50,070(2), this contract exceeds delegated authority and thus requires Council approval. In accordance with AMC 2.50.090 and AMC 2.50.120(A), a formal Competitive Sealed Proposal (Request for Propoao|)isrequired toacquire personal services exceeding $75,000.00. Please refer to the attached solicitation - Request for Proposals - for the scope of services. FISCAL IMPACTS The Electric Utility Department has funds budgeted for this project. DISCUSSION QUESTIONS SUGGESTED NEXT STEPS Staff recommends award of a contract for the Electric System Master Plan services to the highest ranked proposer, Stoddard Power Systems, LLC. REFERENCES & ATTACHMENTS Evaluation Summary Request for Proposal - Electric System Master Plan Stoddard Proposal Page lcfl City of Ashland Request for Proposal ELECTRIC SYSTEM MASTER PLAN Evaluation Summary July 7, 2023 ELCON ENERNEX, LLC STODDARD POWER Points ASSOCIATES INC. SYSTEMS, LLC Evaluation Criteria #1 W2 #3 #1 #2 #3 #1 #2 #3 Letter of Introduction, Table of Contents and Proposal 5 5 5 5 5 5 5 5 5 5 Submission Form (Exhibit A) Qualifications and Experience 30 25 20 25 20 20 20 28 30 30 Task List & Timeline 25 25 25 25 15 10 10 25 25 25 References 10 8 10 7 5 5 9 10 10 10 Contractual Terms and Conditions 5 5 5 5 5 SUBTOTAL 75 68 65 67 50 45 49 73 75 75 Cost Proposal 25 25 25 25 2.61 2.61 2.61 21.1 21.1 21.1 TOTAL 100 93 90 92 52.61 47.61 51.61 94.1 96.1 96.1 Cost Proposals Elcon Associates, Inc. $65,950.00 $65,950.00 100% 25 Points Enemex, LLC $632,314.00 $65,950.00 $632,314.00 10.43% 2.61 Points Stoddard Power Systems, LLC $78,159.00 $65,950.00 $78,159.00 84.38% 21.1 Points RFP Electric System Master Plan, Evaluation Summary, Page 1 of 1 CITY OF ASHLAND loop Date of Release: May 24, 2023 FRO i 11 '1 1 U W Contracting Agency: Sole Point of Contact: Title: Address: Telephone: Fax: Email: City of Ashland Kari Olson Purchasing Specialist City of Ashland 90 N. Mountain Avenue Ashland, OR 97520 (541) 488-5354 (541) 488-5320 kari.olson(a-),ashiand.or.us Page 1 of 25: R.FP Electric System Master Plan TABLE OF CONTENTS 1. PUBLIC NOTICE 2. PROPOSAL PROCESS 3 3. SCHEDULE OF EVENTS 5 4. SCOPE OF SERVICES 10 5. PROPOSAL CONTENTS 12 6. PROPOSAL SUBMISSION REQUIREMENTS 14 7. EVALUATION PROCESS 15 8. EVALUATION CRITERIA 16 EXHIBIT A - PROPOSAL SUBMISSION FORM EXHIBIT B - CERTIFICATE OF COMPLIANCE EXHIBIT C - PERSONAL SERVICES AGREEMENT Page 2 of 25: RFP Electric System Master Plan Request for Proposals Electric System Master Plan Proposals are due by 2:00:00 PM (PST), Tuesday, June 27, 2023 The City of Ashland is requesting written proposals from qualified engineering firms for professional services to complete an Electric System Master Plan for the City's electric utility. The City intends to enter into a contract with the highest ranked proposer for the proposed timeline required to complete the Electric System Master Plan. This Request for Proposal (REP) is intended to provide prospective proposers with sufficient information to prepare and submit a proposal for consideration by the City. The REQUEST FOR PROPOSALS is available online at www.ashland.or.us Log on to the City's website, scroll down the home page to Online City Services and click on "Proposals, Bids and Notifications". Locate the public notice and click on "REQUEST BID PACKET" (beneath the public notice). Log into the system and download the solicitation documents. You will need to log into the system each time you would like to download the solicitation documents and any subsequently issued addenda. In accordance with AMC Section 2.50.080, Competitive sealed proposals may be available online, but applicants will NOT be able to submit their proposals and/or responses online. Proposals must be delivered in hard copy form to the City in accordance with the requirements outlined in the REP. Individuals that obtain the solicitation materials electronically are responsible for regularly checking for instructions, addenda, and related materials. Contract terms, conditions and specifications may be reviewed in the City of Ashland, Purchasing Office, located at 90 N. Mountain, Ashland, Oregon. Deadline for submitting questions is 5:00:00 PM (PST), Friday, June 16, 2023. Sealed proposals must be received by 2:00:00 PM (PST), Tuesday, June 27, 2023, by Kari Olson, Purchasing Specialist in the City of Ashland, Purchasing Office located at 90 N. Mountain Avenue, Ashland OR 97520. The proposals will be opened at 2:00:00 PM (PST), Tuesday, June 27, 2023, and the City will record and make available the identities of the proposers. Proposals will not be available for inspection until after the evaluation process has been completed and the Notice of Intent to Award has been issued. Kari Olson Purchasing Specialist City of Ashland, Oregon Kari. olson(2.�ashland.or. us Tel: 541-488-5354 Published: May 24,2023 Page 3 of 25: RFP Electric System Master Plan Request for Proposals Electric System Master Plan May 24, 2023 ORS 279B.060(2)(c) PURPOSE OF REQUEST FOR PROPOSALS The City of Ashland is requesting written proposals from qualified engineering firms for professional services to complete an Electric System Master Plan for the City's electric utility. The City intends to enter into a contract with the highest ranked proposer for the proposed timeline required to complete the Electric System Master Plan. This Request for Proposal (RFP) is intended to provide prospective proposers with sufficient information to prepare and submit a proposal for consideration by the City. ORS 279B.060(2)(b) SOLE POINT OF CONTACT Information, correspondence and questions pertaining to this Request for Proposals (RFP) shall ONLY be directed to: Name: Kari Olson Title: Purchasing Specialist Address: City of Ashland 90 N. Mountain Avenue, Ashland, OR 97520 Telephone: 541-488-5354 Fax: 541-488-5320 Email: Kari.olson(dashland.or.us This person is the sole point of contact during the entire REP process including clarification and/or protest of specifications, method of bidding, the evaluation and award process, and/or other questions that may arise. The REP documents may be reviewed upon request by contacting the designated sole point of contact listed above. OAR 137-047-0260(2)(a)(C) OPENING DUE DATE AND TIME Proposals must be received prior to the scheduled opening. The opening is scheduled for the following due date and time: Proposals are due by: 2: 00:00 PM (PST), Tuesday, June 27, 2023 The proposal must be addressed to the designated sole point of contact and received prior to the due date and time. Proposals received after CLOSING are considered LATE and will NOT be accepted for evaluation. Late proposals will not be considered. Page 4 of 25: RFP Electric System Master Plan OAR 137-047-0260(2)(c)(A) SCHEDULE OF EVENTS ACTIVITY DATE Request for Proposals Released May 24, 2023 V Public Notice May 24, 2023 Deadline for Submitting Questions and 5:00:00 PM (PST), Friday, June 16, 2023 Requests for Additional Information RFP Protest Period Ends 5:00:00 PM (PST), Monday, April 10, 2023 DUE DATE AND TIME 2:00:00 PM (PST), Tuesday, June 27,2023 (Note: Proposals must be received prior to the due date and time.) Location: City of Ashland, Purchasing Office 90 N. Mountain, Ashland, OR 97520 Evaluation Process June 28 — July 6, 2023 Contract Recommendation Upon completion of evaluation process Notice of Intent to Award Announcement (7) Days prior to executing contract Award Protest Period Ends (7) Days after Notice of Intent to Award is released Contract Recommendation July 18, 2023 Presented to City Council for Final Approval Contract Award Upon Council Approval and (7) Days after the Notice of Intent to Award Announcement Services intended to begin Upon receiving a fully executed contract NOTE: This is a tentative schedule and is provided as a courtesy to potential proposers. The actual schedule may vary from that provided without notice to potential proposers. Any changes made to the closing date of the RFP will be made in the form of an addendum and mailed to all potential proposers who have received RFP documents. QUESTIONS AND REQUESTS FOR ADDITIONAL INFORMATION: All potential proposers are encouraged to ask questions and request additional information that will aid in the clarification of the RFP requirements. Questions and requests for information will be promptly considered, and written responses will be provided in the form of a written addendum and posted on the City's website. All inquiries, whether relating to the RFP process, administration, deadline or method of award, or to the intent or technical aspects of the RFP must: • Be delivered via email to the Sole Point of Contact identified on page 4 of the RFP • Reference the name of the RFP • Identify the proposer's name and contact information • Be sent by an authorized representative • Refer to the specific area of the RFP being questioned (i.e., page, section and paragraph number); and • Be received by the due date and time for Questions/Requests for Clarification identified in the schedule OAR 137-047-0260(2)(a)(F) Addenda The provisions of this RFP cannot be modified by oral interpretations or statements. Proposers are cautioned not to make any assumptions as to the implied meaning or intent of any part of the RFP. Proposers should request clarification. If inquiries or comments by proposers raise issues that require clarification by the City, or the City revises any part of this RFP, addenda will be provided in the form of a written addendum and posted on the City's website. Receipt of an addendum must be acknowledged by signing and returning it with the proposal. Addenda will be issued within a reasonable time to allow prospective proposers to consider the addenda in preparing their proposals. Unless a different deadline is set forth in the addendum, a proposer may submit a request for change or protest by the close of the next business day after the issuance of the addendum, or up to the Page 5 of 25: REP Electric System Master Plan last day the RFP Protest Period ends, whichever date is later. If the date established in the previous sentence falls after the RFP Protest Period ends, the City will consider a request for change or protest to the addendum only. Addenda shall not be issued less than 72 hours before the closing unless the addendum also extends the closing. ORS 279B.405 Protest Solicitation Process A prospective proposer for a public contract solicited under ORS 27913.055, 27913.060 or 27913.085 may file a protest with the City if the prospective proposer believes that the procurement process is contrary to law or that a solicitation document is unnecessarily restrictive, is legally flawed or improperly specifies a brand name. If a prospective proposer fails to timely file such a protest, the prospective proposer may not challenge the contract on grounds under this subsection in any future legal or administrative proceeding. If the protest is received at least 10 days prior to bid closing and meets the requirements of ORS 279B.405, the City shall consider the protest and issue a decision in writing. Otherwise, the City shall promptly notify the prospective proposer that the protest is untimely or that the protest failed to meet the requirements and give the reasons for the failure. The City shall issue a decision on the protest no fewer than three business days before proposals are due, unless a written determination is made by the City that circumstances exist that justify a shorter time limit. Protests must: • Be delivered to the Sole Point of Contact identified on page 4 via email, facsimile, hard copy • Reference the name of the RFP • Identify prospective proposer's name and contact information • Be sent by an authorized representative • State the Reason for the protest, including: o the grounds that demonstrate how the procurement process is contrary to law, unnecessarily restrictive, legally flawed, or improperly specifies a brand name; and o evidence or documentation that supports the grounds on which the protest is based • State the proposed changes to the RFP provisions or other relief sought • Protests to the RFP must be received by the due date and time identified in the schedule • Protests to addenda must be received by the close of the next business day after the issuance of the addendum, or up to the last day the RFP Protest Period ends, whichever date is later. OAR 137-047-0440 Pre -Closing Modification or Withdrawal of Offers A proposer may modify its proposal in writing prior to the closing in accordance with OAR 13 7-047-0400, OAR 13 7-047-04 10 and OAR 137-047-0440. Any modification must include the proposer's statement that the modification amends and supersedes the prior proposal. A proposer in accordance with OAR 137-047-0440 may withdraw its proposal by written notice submitted on proposer's letterhead, signed by authorized representative of the proposer, and delivered to the individual and location specified in the solicitation document prior to closing. OAR 137-047-0460 Late Offers, Late Withdrawals and Late Modifications Any proposal received after closing is late. A proposer's request for withdrawal or modification of a proposal received after closing is late. An Agency shall not consider late proposals, withdrawals or modifications except as permitted in OAR 137-047-0470 or 137-047-0262. Proposal Acceptance Proposals that do not address all areas requested by this RFP may be deemed non- responsive and may not be considered for any possible contract awarded resulting from this RFP. ORS 279B.060(2)(e) Cancel, Reject or Delay Procurement The City of Ashland may cancel the procurement, reject in whole or in part any or all proposals, or suspend or delay the procurement in accordance with ORS 279B. 100 when it's in the best interest of the City of Ashland as determined by the City of Ashland. In no event shall the City of Ashland have any liability for the cancellation, rejection, or Page 6 of 25: RFP Electric System Master Plan suspension of a solicitation or award. The proposer assumes the sole risk and responsibility of all expenses connected with the preparation of its proposal. Collusion By submitting a proposal, proposer certifies that no officer, agent, or employee of the City of Ashland has a monetary interest in this proposal; that the proposal is made in good faith without fraud, collusion, or connection of any kind with any other proposer and that the proposer is competing solely in its own behalf without connection with, or obligation to, any undisclosed person or company. Disputes In case of any doubt or differences of opinions as to the items or services to be furnished hereunder, or the interpretation of the provisions of the RFP, the decision of the City of Ashland shall be final and binding upon all parties. Clarification of Responses The City of Ashland reserves the right to request clarification of any item in any proposal, or to request additional information necessary to properly evaluate a proposal. References The City of Ashland reserves the right to investigate any and all references and the past performance information provided in the proposal with respect to proposer's successful performance of similar projects, compliance with specifications and contractual obligations, completion or delivery of a project on schedule, and lawful payment of employees and workers. Recyclable and Recycled Products Contractors shall use recyclable products to the maximum extent economically feasible in the performance of the contract work set forth in this RFP. ORS 279A. 125 The City shall give preference to goods that are certified to be made from recycled materials if the recycled product is available, meets applicable standards, can be substituted for a comparable non- recycled product; and the recycled products costs do not exceed the costs of non - recycled products by more than five percent, or a higher percentage if a written determination is made by the City. ORS 282.210 All printing, binding and stationery work done for the City shall be performed within the State of Oregon. ORS 279B.060(2)(g) If required under ORS 468A.710, the contractor or subcontractor is required to possess an asbestos abatement license. ORS 279B.060(6)(a) Opening Procedures Notwithstanding ORS 192.410 to 192.505, proposals may be opened in a manner to avoid disclosure of contents to competing proposers during, when applicable, the process of negotiation, but the City of Ashland shall record and make available the identity of all proposers as part of the City's public records after the proposals are opened. Notwithstanding ORS 192.410 to 192.505, proposals are not required to be open for public inspection until after the notice of intent to award a contract is issued. The fact that proposals are opened at a meeting, as defined in ORS 192.610, does not make the contents of the proposals subject to disclosure, regardless of whether the public body opening the proposals fails to give notice of or provide for an executive session for the purpose of opening proposals. OAR 137-047-0260(2)(a)(E) Certification of Nondiscrimination Proposer to certify that the proposer has not discriminated and will not discriminate, in violation of ORS 279A.110(1), against aminority, women or emerging small business enterprise certified under ORS.200.055 or against a business enterprise that is owned or controlled by or that employs a disabled veteran as defined in ORS 408.225 in obtaining a required subcontract. The Certificate of Compliance attached as Exhibit B, is required to be Page 7 of 25: RFP Electric System Master Plan signed and included with your proposal. ORS 279B.060(6)(b) Proprietary Information (Trade Secrets) Notwithstanding any requirement to make proposals open to public inspection after the City of Ashland's issuance of a notice of intent to award a contract, the City of Ashland may withhold from disclosure to the public materials included in a proposal that are exempt or conditionally exempt from disclosure under ORS 192.501 or 192.502. All proposals are public record and are subject to public inspection after Agency issues the Notice of the Intent to Award. If a proposer believes that any portion of its proposal contains any information that is a trade secret under ORS Chapter 192.501(2) or otherwise is exempt from disclosure under the Oregon Public Records Law (ORS 192.410 through 192.505). The scope of services and cost information generally is not considered a trade secret under Oregon Public Records Law (ORS 192.410 through 192.5 05) and identifying the proposal, in whole, as exempt from disclosure is not acceptable. Agency advises each proposer to consult with its own legal counsel regarding disclosure issues. If proposer fails to identify the portions of the proposal that proposer claims are exempt from disclosure, Proposer has waived any future claim of non -disclosure of that information. If applicable, the proposer shall submit a redacted version of its proposal if the proposal being submitted in response to this RFP contains trade secrets. ORS 279B.060(13) Notice of Intent to Award a Public Contract The City of Ashland shall provide written notice of its intent to award to all proposers pursuant to ORS 27913.135 and OAR 137-047-0610 at least seven (7) days before the award of the contract, unless the City determines that circumstances justify prompt execution of the contract, in which case the City may provide a shorter notice period. ORS 279B.060(14) Contract Award The City of Ashland shall award the contract to the responsible proposer whose proposal the City of Ashland determines in writing to be the most advantageous to the City of Ashland based on the evaluation process and evaluation factors described in this Request for Proposals, and any applicable preferences described in ORS 279A. 120, ORS 279A. 125 and ORS 279A. 128 and, when applicable, the outcome of any negotiations authorized by this Request for Proposals. Other factors may not be used in the evaluation. In addition, any other public agency wishing to use the resulting contract may be authorized by mutual consent of the City of Ashland and the contractor. ORS 279B.410 Protest of Contract Award A proposer may protest the award of a public contract or notice of intent to award a public contract if the proposer is adversely affected because the proposer would be eligible to be awarded the public contract in the event that the protest were successful. The written protest shall specify the reasons for the protest pursuant to ORS 27913.41 0(l)(b) and be delivered to the sole point of contact named in the RFP within seven days after issuance of the Notice of Intent to Award a contract. The City shall consider and respond in writing to a protest in a timely manner. ORS 279B.060(2)(h) Contractual Terms and Conditions The proposer selected by the City of Ashland will be expected to enter into a written contract in the form attached to this RFP. This RFP and the contents of the proposal of the successful proposer will become contractual obligations if a contract is executed. The proposal should indicate acceptance of the City of Ashland's contract provisions or suggest reasonable alternatives that do not substantially impair the City of Ashland's rights under the contract. The proposer may also propose contractual terms and conditions that relate to subject matter reasonably identified in this Request for Proposals. The City of Ashland reserves the right to negotiate the contractual Page 8 of 25: RFP Electric System Master Plan terms and conditions proposed as alternatives by the proposer. If inclusion of any of the City of Ashland's contract provisions will result in higher costs for the services, such costs must be specifically identified in the proposal. Unconditional refusal to accept the contract provisions proposed by the City of Ashland without offering acceptable alternatives may result in the disqualification of the proposal. Insurance Certificates The Contractor will be required to provide and maintain ALL required insurance certificates, and provide current Certificates of Insurance, including the City of Ashland endorsed as the additional insured, to the City prior to any lapse of insurance coverage. Additional Terms The City of Ashland reserves the right to waive irregularities or deficiencies in a proposal if the City of Ashland determines that waiver is in the best interest of the City of Ashland. The City of Ashland may request supplemental written information from a proposer concerning the proposer's ability to perform the services. If a proposer fails to provide supplemental information within the time stated. in the request, the City of Ashland may refuse to consider the proposer's proposal. The City of Ashland may request an interview with any proposer. If a proposal is unclear, or appears inadequate, the proposer may be given an opportunity in the interview to explain how the proposal complies with the RFP. The City of Ashland reserves the right to make such investigation it deems appropriate to determine whether a proposer is qualified to provide the services. If a proposer fails to cooperate with an investigation, or if a proposer provides false, misleading or incomplete information, the City of Ashland may refuse to consider the proposer's proposal. In cases of doubt or differences of opinion concerning the interpretation of this RFP, the City of Ashland reserves the exclusive right to determine the intent, purpose and meaning of any provision in this RFP. Page 9 of 25: RFP Electric System Master Plan SCOPE OF SERVICES The City of Ashland is requesting written proposals from qualified engineering firms for professional services to complete an Electric System Master Plan for the City's electric utility. The following is a general description of the scope of services for the City's Electric System Master Plan. A more detailed scope of services may be developed with the highest ranked proposer. Information the City will provide is as follows: • Known urban growth information. • BPA load data • Available transformer data • Available pole data • Available underground cable data • Available meter and SCADA data • Available DER data • Relevant technical information from the City's electrical engineering firm Electric System Master Plan responsibilities and deliverables to be provided are as follows: 1. Load forecasting for future growth needs 2. Seasonal load shift data to identify areas of concern 3. Major electrical infrastructure replacement schedule 4. Transformer inventory review and replacement schedule 5. Pole inventory review and replacement schedule 6. Underground cable inventory review and replacement schedule 7. Electric meter system replacement schedule and future system advisory 8. System situational awareness advisory and monitoring to maintain optimal operations. 9. Opportunities and barriers for adding renewables (e.g., solar, wind, hydro, etc.). 10. Evaluate system readiness for moderate to high adoption of EVs (i.e., residential and commercial electric vehicle charging stations) and fuel switching (e.g., gas appliances to electric appliances). 11. Projected rate impacts for all capital improvement recommendations 12. Recommendations for integration of the City's Climate and Energy Action Plan in the Electric System Master Plan https://ashlandor.org/climate-energy/climate-plan/ 13. Recommendations for integration of the City's Wildfire Mitigation Plan in the Electric System Master Plan https://edoes.pue.state.or.us/efdoes/HAQ/ro14hag91017.pd Page 10 of 25: RFP Electric System Master Plan Close-out tasks to be provided as follows: 1. Prepare draft of Electric System Master Plan for City staff review. N Email draft to the Electric Director, Thomas MeBartlett 111. Thomas.mebartlett(�,)ashland.or.us a The draft will be reviewed internally by City staff. ■ Additional information and/or revisions and/or services may be requested for the development of the Electric System Master Plan at this time, which may require an amendment (i.e., increase in SOW and compensation) to the contract. R Prepare final draft of the Electric System Master Plan. 2. Schedule and facilitate an in -person review of the final draft of the Electric System Master Plan with the City's Electric Director, Thomas McBartlett 111. 3. Present the final draft of the Electric System Master Plan to the City Council. Assist City staff, as needed, to obtain the City Council's approval and adoption of the proposed Electric System Master Plan. Page I I of 25: RFP Electric System Master Plan PROPOSAL CONTENTS Proposals shall provide a straightforward, concise description of the proposer's capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness and clarity of content. Submissions of technical literature, display charts, or other supplemental materials are the responsibility and within the discretion of the proposer. The proposal must contain and be organized in accordance with the following section titled Proposal Contents. The proposer assumes the sole risk and responsibility of all expenses connected with the preparation of its proposal. Letter of Introduction / Cover Pal4e ✓ Include a letter of introduction addressed to Thomas McBartlett 111, Electric Director and signed by a person legally authorized to bind the proposer to its proposal. The letter will introduce the company and include the company name, principal contact name, physical address, mailing address, telephone number, fax number and email address. The letter of introduction may also introduce the proposal and summarize the key provisions of the proposal. Table of Contents V Include a clear identification of the material by section and by page number. Proposal Submission Form V Complete and include the Proposal Submission Form attached as Exhibit A. Qualifications and Experience ✓ Describe your firm's experience specifically creating Electric System Master Plans for electric utilities . Include the name, location, client entity, and year the Electric System Master Plans were created for each of the utilities. ✓ Provide the names and titles of each person, their specific qualifications, credentials, level of experience (practical and educational), and number of years' experience that will be assigned to the City's project. V Provide proof of licenses required to practice in the State of Oregon. Task List &Timeline ,' Provide the task list & timeline being proposed to complete the scope of services. (Note: The City Council meetings occur on the first and third Tuesdays of each month, excluding holidays.) Page 12 of 25: R-FP Electric System Master Plan References ✓ Provide a minimum of three (3) references the proposer has/is currently providing these types of professional services. The City reserves the right to verify these references. Include the following infon-nation for each reference: • Name of agency • Contact name of individual who can verify your performance. • Telephone number • Email address • Identify the services that were provided for each reference. Contractual Terms and Conditions The highest ranked proposer will enter into an agreement with the City of Ashland, Oregon, in aform substantially similar to that attached hereto as Exhibit C. ✓ Indicate acceptance of the City's contract provisions found in the Personal Services Agreement attached as Exhibit C or suggest reasonable alternatives that do not substantially impair the City's rights under the agreement. Some contract terms and conditions may be negotiable. ✓ The Certificate of Compliance attached as Exhibit B, is required to be signed and included with your proposal. Cost Proposal IMPORTANT: The Cost Proposal (fee schedules, including any alternative pricing options) are to be submitted separately from the technical proposal in a sealed envelope marked "COST PROPOSAL" per the submission instructions on page 16. ✓ Provide detailed costs by task and the total proposed cost to complete the project. Any and all costs for travel, lodging and meals, will preferably be at federal per them rates. The City understands if the scope of services is further developed with the successful proposer, there may be additions or deletions to the cost at that time. Note: For ease in preparing the detailed cost proposal, you are welcome to add the costs and total amount to your Task List & Timeline and submit the version with the associated costs separately with your cost proposal. ✓ Provide hourly rate fee schedule. Trade Secrets (if applicable) ✓ If applicable, the proposer shall submit a redacted version of its proposal if the proposal being submitted in response to this R-FP contains trade secrets. IMPORTANT: Proposals become public information after the City releases a Notice of Intent to Award a Public Contract. It is important to submit a fully redacted copy of the proposal if it contains confidential trade secrets. A description of services being acquired by the City and the costs associated with those services are NOT considered confidential information. Page 13 of 25: R-FP Electric System Master Plan The complete written proposal is to be submitted with multiple copies as follows: TECHNICAL PROPOSAL ■ One (1) original copy of the complete proposal SIGNED IN INK ■ Two (2) additional copies of the complete proposal COST> PROPOSAL Cost proposal must be submitted separately from the technical proposal in a sealed envelope as follows: ■ One (1) original copy of the complete proposal SIGNED IN INK ■ Two (2) additional copies of the complete proposal The complete proposal, including the additional copies, are to be submitted in a single SEALED ENVELOPE (or box) labeled as follows and received at the following address: Kari Olson Purchasing Specialist City of Ashland 90 N. Mountain Avenue Ashland, OR 97520 Contents: Request for Proposal ELECTRIC SYSTEM MASTER PLAN Due by: 2:00:00 PM (PST), Tuesday, June 27, 2023 Please note: Late proposals will not be considered. No exceptions. It is recommended that you request available delivery options for the City of Ashland, Oregon area and verify that your method of shipment will arrive prior to the due date and time. DUE DATE AND TIME: The proposals must be received at the designated address listed above by 2:00:00 PM (PST), Tuesday, June 27, 2023. Late proposals will not be considered. Faxed or emailed proposals will not be considered. Period of Irrevocability Proposals will be offers that are irrevocable for a period of sixty (60) days after the time and date proposals are due. Proposals will contain the name, address and telephone number of an individual or individuals with authority to bind the company during the period in which the proposal will be evaluated. Page 14 of 25: RFP Electric System Master Plan In accordance with ORS 27913.060 (14), The City shall award the contract to the responsible proposer whose proposal the City determines in writing is the most advantageous to the City based on the evaluation process and evaluation criteria described in this RFP, applicable preferences described in ORS 279A.120, 279A.125 and 279A.128, and, when applicable the outcome of any negotiations authorized by the RFP. Other factors may not be used in the evaluation. An evaluation committee appointed by the City of Ashland will evaluate the proposals based on the evaluation criteria established in this Request for Proposals. Each category will be scored with a number of points, up to the maximum number of points assigned to each category. The greater the number of points assigned to a category, the greater the category's level of importance. Each proposal will be evaluated, scored and then ranked according to the evaluation criteria set forth in this RFP. After the initial evaluation of the proposals has been completed, the Evaluation Committee may request clarifications,. Requests for clarifications will be processed via email by the sole point of contact identified on page 4 of this RFP. No additions, deletions or substitutions may be made to proposals that cannot be termed as clarifications. Proposer's responses to questions shall restate the question and provide the requested clarification. The City of Ashland may reject any proposal not in compliance with all prescribed solicitation procedures and requirements and other applicable laws, and the City may reject for good cause any or all proposals upon the City's findings that it is in the best interest of the City of Ashland. If only one responsive proposal is received, the City of Ashland reserves the right to negotiate a contract with the sole responsive proposer. The total points awarded to each proposal will be tabulated and the proposers shall be ranked accordingly. A contract with the proposer deemed to be the highest ranked proposer will then be negotiated. If negotiations with the highest ranked proposer are unsuccessful, the City of Ashland may proceed to the next highest ranked proposer, and so on until a contract is successfully negotiated. In accordance with OAR 137-047-0260(2)((b)(A)(B)(C), the statement of work will identify the scope of work to be performed under the resulting contract, outline anticipated duties of the contractor and establish the expectations for the contractor's performance of the resulting contract. The agreed upon tasks will also identify respective responsibilities of the contractor and City staff. In accordance with ORS 279B.060 (16), the City shall obtain the proposer's agreement to perform the scope of work and meet the performance standards set forth in the final negotiated statement of work. The final contract recommendation will then be subject to the approval of the City Council acting as the Local Contract Review Board. Page 15 of 25: RFP Electric System Master Plan EVALIATION CRITERIA The proposals will be evaluated according to the following criteria. EVALUATION CRITERIA POINTS Letter of Introduction, Table of Contents and Proposal Submission Form (Exhibit A) 5 Qualifications and Experience 30 Task List & Timeline 25 References 10 Contractual Terms and Conditions 5 SUBTOTAL 75 Cost Proposal 25 TOTAL 100— Page 16 of 25: RTP Electric System Master Plan Request for Proposals ELECTRIC SYSTEM MASTER PLAN May 24, 2023 Proposal Submission Form The undersigned proposer submits this proposal in response to the City's Request for Proposals (RFP) for Electric System Master Plan, released on May 24, 2023. The proposer warrants that the proposer has carefully reviewed the RFP and that this proposal represents the proposer's full response to the requirements described in the RFP. The proposer further warrants that if this proposal is accepted, the proposer will contract with the City, agrees to the terms and conditions found in the attached contract and RFP or has submitted terms and conditions acceptable to the City, and will provide all necessary labor, materials, equipment, and other means required to complete the work in accordance with the requirements of the RFP and contract documents. The proposer hereby acknowledges the requirement to carry or indicates the ability to obtain the insurance required in the contract. Indicate in the affirmative by initialing here: The proposer hereby acknowledges receipt of Addendum Nos. , , —1 -1 - to this REP. Full legal name of company: Principle owner's name: Business Address: State and location of company headquarters: Year business established: Telephone Number: Fax Number: Email Address: Authorized Signature: Printed/Typed Name: Title: Date: Page 17 of 25: RFP Electric System Master Plan WOMM Certificate of Compliance Compliance with Oregon Tax Laws: In compliance with OAR 137-047-0260(2)(e), I hereby attest or affirm under penalty of perjury: That I am authorized to act on behalf of the proposer in this matter, that I have authority and knowledge regarding the payment of taxes, and that contractor is, to the best of my knowledge, not in violation of any Oregon Tax Laws, as defined in ORS 305.380. Compliance with Nondiscrimination Laws: In compliance with ORS 279A. 110(4), OAR 137-046-0210(2) and OAR 137-047-0260(2)(a)(E), I hereby attest or affirm under penalty of perjury that I am authorized to act on behalf of proposer in this matter, and to the best of my knowledge the proposer has not discriminated and will not discriminate, in violation of ORS 279A. I I 0(l), against a minority, women or emerging small business enterprise certified under ORS 200.055 or against a business enterprise that is owned or controlled by or that employs a disabled veteran as defined in ORS 408.225 in obtaining a required subcontract, Corporate Officer: By: Signature Print Name Title: Date: Page 18 of 25: R.FP Electric System Master Plan Imovit"I'll WOMUNUMM CITY OF CONTACT: ,LAD 20 East Main Street ADDRESS: Ashland, Oregon 97520 Telephone: 541/488-XXXX TELEPHONE: Fax: 541/552-XXXX This Personal Services Agreement (hereinafter "Agreement") is entered into by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and XXXXXXXXX, a domestic professional corporation or limited liability company ("hereinafter "Consultant"), for (description of services to be provided.), NOW THEREFORE, in consideration of the mutual covenants contained herein, the City and Consultant hereby agree as follows: 1. Effective Date and Duration: This Agreement shall become effective on the date of execution on behalf of the City, as set forth below (the "Effective Date"), and unless sooner terminated as specifically provided herein, shall terminate upon the City's affirmative acceptance of Consultant's Work as complete and Consultant's acceptance of the City's final payment therefore, but not later than �XXXXXXXX. 2. Scope of Work: Consultant will provide (description of services to be provided) as more fully set forth in the Consultant's Proposal dated XXXXXXXXX, which is attached hereto as "Exhibit X" and incorporated herein by this reference. Consultant's services are collectively referred to in this Agreement as the "Work." 3. Compensation: City shall pay Consultant the sum of $XXXXXXXX (this amount may be an hourly rate OR a lump sum - write out amount in long form here, e.g., two hundred thousand and eighty-five dollars) as fall compensation for Consultant's performance of all Work under this Agreement. In no event shall Consultant's total of all compensation and reimbursement under this Agreement exceed the sum of $XXXXXXXXXX (write out amount in long form here) without the express, written approval from the City official whose signature appears below, or such official's successor in office. Payments shall be made within thirty (30) days of the date of receipt by the City of Consultant's invoice. Should this Agreement be terminated prior to completion of all Work, payments will be made for any phase of the Work completed and accepted as of the date of termination. 4. Supporting Documents/Conflicting Provisions: This Agreement and any exhibits or other supporting documents shall be construed to be mutually complementary and supplementary wherever possible. In the event of a conflict which cannot be so resolved, the provisions of this Agreement itself shall control over any conflicting provisions in any of the exhibits or supporting documents. Page 19 of 25: RFP Electric System Master Plan 5. All Costs Borne by Consultant: Consultant shall, at its own risk, perform the Work described above and, unless otherwise specified in this Agreement, furnish all labor, equipment, and materials required for the proper performance of such Work. 6. Qualified Work: Consultant has represented, and by entering into this Agreement now represents, that all personnel assigned to the Work to be performed under this Agreement are fully qualified to perform the services to which they will be assigned in a skilled manner and, if required to be registered, licensed, or bonded by the State of Oregon, are so registered, licensed, or bonded. 7. Ownership of Work/Documents: All Work, work product, or other documents produced in furtherance of this Agreement belong to the City, and any copyright, patent, trademark proprietary or any other protected intellectual property right shall vest in and is hereby assigned to the City. 8. Statutory Requirements: The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 27913.235. 9. Data Safeguards: a. Consultant shall access, store, and use Confidential Information solely for the purpose of providing the Work required by this Contract. b. Consultant shall maintain physical, technical, and administrative safeguards to protect Confidential Information against unauthorized access. c. Contractor shall not disclose Confidential Information to any third parties other than Contractor's employees or approved subcontractors who have a legitimate need to access such Confidential Information and solely for the purpose of providing the Work, and only if such third parties are bound by confidentially and non -disclosure provisions no less restrictive than those set out in this Contract, including compliance with all applicable laws and regulations. 10. Indemnification: Consultant hereby agrees to defend, indemnify, save, and hold City, its officers, employees, and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, or other damages resulting from injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this Agreement by Consultant (including but not limited to, Consultant's employees, agents, and others designated by Consultant to perform Work or services attendant to this Agreement). However, Consultant shall not be held responsible for any losses, expenses, claims, costs, judgments, or other damages, caused solely by the gross negligence of City. 11. Termination: a. Mutual Consent. This Agreement may be terminated at any time by the mutual consent of both parties. b. City's Convenience. This Agreement may be terminated by City at any time upon not less than thirty (30) days' prior written notice delivered by certified mail or in person. 0. For Cause. City may terminate or modify this Agreement, in whole or in Part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: i. If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in Page 20 of 25: RFP Electric System Master Plan such a way that the services are no longer allowable or appropriate for purchase under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or iii. If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this Agreement is for any reason denied, revoked, suspended, or not renewed. d. For Default or Breach. i. Either City or Consultant may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and its intent to terminate. If the party committing the breach has not entirely cured the breach within fifteen (15) days of the date of the notice, or within such other period as the party giving the notice may authorize in writing, then the Agreement may be terminated at any time thereafter by a written notice of termination by the party giving notice. ii. Time is of the essence for Consultant's performance of each and every obligation and duty under this Agreement. City, by written notice to Consultant of default or breach, may at any time terminate the whole or any part of this Agreement if Consultant fails to provide the Work called for by this Agreement within the time specified herein or within any extension thereof. iii. The rights and remedies of City provided in this subsection (d) are not exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. e. Obligation/Liability of Parties. Termination or modification of this Agreement pursuant to subsections a, b, or c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, -upon receiving a notice of termination (regardless of whether such notice is given pursuant to Subsection a, b, c, or d of this section, Consultant shall immediately cease all activities under this Agreement, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall, deliver to City all documents, information, works -in -progress and other property that are or would be deliverables had the Agreement been completed. City shall pay Consultant for Work performed prior to the termination date if such Work was performed in accordance with this Agreement. 12. Independent Contractor Status: Consultant is an independent contractor and not an employee of the City for any purpose. Consultant shall have the complete responsibility for the performance of this Agreement. Consultant shall provide workers' compensation coverage as required in ORS Chapter 656 for all persons employed to perform Work pursuant to this Agreement. Consultant is a subject employer that will comply with ORS 656.017. 13. Assignment: Consultant shall not assign this Agreement or subcontract any portion of the Work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract of the Work shall not create any contractual relation between the assignee or subcontractor and City. Page 21 of 25: RFP Electric System Master Plan 14. Default. The Consultant shall be in default of this Agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation under the Agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type identified in its obligations under the Agreement; or attempts to assign rights in, or delegate duties under, this Agreement. 15. Insurance. Consultant shall, at its own expense, maintain the following insurance: a. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers b. Professional Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence. This is to cover any damage caused by error, omission or negligent acts related to the Work to be provided under this Agreement. c. General Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence for Bodily Injury, Death, and Property Damage. d. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than $1,000,000 (one million dollars) for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non -owned vehicles, as applicable. e. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without thirty (3 0) days' prior written notice from the Consultant or its insurer(s) to the City. f. Additional Insured/Certificates of Insurance. Consultant shall name the City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Agreement. The consultant's insurance is primary and non-contributory. As evidence of the insurance coverages required by this Agreement, the Consultant shall furnish acceptable insurance certificates prior to commencing the Work under this Agreement. The certificate will specify all of the parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If requested, complete copies of insurance policies; trust agreements, etc. shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self -insured retentions, and/or self-insurance. 16. Nondiscrimination: Consultant agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the perforinance of any Work under this Agreement when employed by Consultant. Consultant agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Consultant agrees not to discriminate against a disadvantaged business enterprise, minority -owned business, woman -owned business, a business that a service -disabled veteran owns, or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A. 110. 17. Consultant's Compliance with Tax Laws: 17.1 Consultant represents and warrants to the City that: Page 22 of 25: RFP Electric System Master Plan 17.1.1 Consultant shall, throughout the term of this Agreement, including any extensions hereof, comply with: (1) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 17.1.2 Consultant, for a period of no fewer than six (6) calendar years preceding the Effective Date of this Agreement, has faithfully complied with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 18. Notice. Whenever notice is required or permitted to be given under this Agreement, such notice shall be given in writing to the other party by personal delivery, by sending via a reputable commercial overnight courier, by mailing using registered or certified United States mail, return receipt requested, postage prepaid, or by electronically confirmed at the address or facsimile number set forth below: If to the City: City Department Attn: Contract Administrator Address Ashland, Oregon 97520 With a copy to: City of Ashland — Legal Department 20 E. Main Street Ashland, Oregon 97520 Phone: (541) 488-5350 If to Consultant: XXXXXXXXX XXXXXXXXX 19. Governing Law. This Agreement shall be governed by the laws of the State of Oregon without regard to conflict of laws principles. Exclusive venue for litigation of any action arising under this Agreement shall be in the Circuit Court of the State of Oregon for Jackson County unless exclusive jurisdiction is in federal court, in which case exclusive venue shall be in the federal district court for the district of Oregon. Each party expressly waives any and all rights to maintain an action under this Agreement in any other venue, and expressly consents that, upon motion of Page 23 of 25: RFP Electric System Master Plan the other party, any case may be dismissed, or its venue transferred, as appropriate, so as to effectuate this choice of venue. 20. Amendments. This Agreement may be amended only by written instrument executed by both parties with the same formalities as this Agreement. 21. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this Agreement within the City's fiscal year budget. Consultant understands and agrees that City's payment of amounts under this Agreement attributable to Work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this Agreement. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this Agreement without penalty or liability to City, effective upon the delivery of written notice to Consultant, with no further liability to Consultant. 22. THIS AGREEMENT AND THE ATTACHED EXHIBITS CONSTITUTE THE ENTIRE UNDERSTANDING AND AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS AGREEMENT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS AGREEMENT. CONSULTANT, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT HE/SHE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. 23. Certification. Consultant agrees to and shall sign the certification attached hereto as "Exhibit C" and incorporated herein by this reference. Page 24 of 25: RFP Electric System Master Plan IN WITNESS WHEREOF the parties have caused this Agreement to be signed in their respective names by their duly authorized representatives as of the dates set forth below. CITY OF ASHLAND: XXXXXXXXX (CONSULTANT): 0 Joseph L. Lessard, City Manager 17DWS" Purchase Order No. City Attorney Date -0 Signature Printed Name Title Date (W-9 is to be submitted with this signed Agreement) Page 25 of 25: RFP Electric System Master Plan �jSTODDARD f, 1600 Valley River Drive, Suite 380 N Eugene, OR 97401 0 Phone (541)-228-9353 June 23, 2023 Thomas McBarlett III Electric Director City of Ashland 90 N. Mountain Avenue, Ashland, OR 97620 Attn: Mr, Thomas McBarlett Subject: Electrical Engineering Services for Electrical System Master Plan Stoddard Power Systems, LLC (SPS) is pleased to provide the attached engineering proposal for the 1 0-year planning master plan for the City's electric utility in accordance with the City of Ashland request for proposal. SPS is a small, Oregon based consulting firm with consulting engineers having many years of experience providing services to municipal utilities. We hope you get an opportunity to speak with some of our utility client references to find out more about us and the expertise and customer service we can bring to you. Please direct any questions regarding our proposal to Martin Stoddard per the following: Martin Stoddard, P.E. Principal - Stoddard Power Systems, LLC 1600 Valley River Drive - Suite 380 Eugene, OR 97401 Office: 541-228-9353 Cell: 541-250-5646 martin,stoddard@stoddardpower.com We appreciate the opportunity to be of service to the City of Ashland. We look forward to hearing from you and hope to meet you in person in the near future. Sincerely, Martin Stoddard, P.E. Stoddard Power Systems, LLC Enclosure Stoddard Power Systems, LLC www,stoddardpower.com Request for Proposals ELECTRIC SYSTEM MASTER PLAN May 24,2023 Proposal Submission Form The undersigned proposer submits this proposal in response to the City's Request for Proposals (RFP) for Electric System Master Plan, released on May 24, 2023, The proposer warrants that the proposer has carefully reviewed the RFP and that this proposal represents the proposer's Rill response to the requirements described in the RFP. The proposer further warrants that if this proposal is accepted, the proposer will contract with the City, agrees to the terms and conditions found in the attached contract and RFP or has submitted terms and conditions acceptable to the City, and will provide all necessary labor, materials, equipment, and other means required to complete the work in accordance with the requirements of the RFP and contract documents. The proposer hereby acknowledges the requirement to carry or indicates the ability to obtain the insurance required in the contract. Indicate in the affirmative by initialing here: The proposer hereby acknowledges receipt of Addendum Nos. 1 12 , _j , �to this RFP. Full legal name of company: Stoddard Power Systems Principle owner's name: Martin Stoddard Business Address: 1600 Valley River Drive, �$tq Eugene, Oregon 97401 State and location of company headquarters: Eugene, Oregon Year business established: 2021 Telephone Number: 541 228 9353 Fax Number: N/A Email Address: maltin.stoddard@stoddardpower.com Authorized Signature: Printed/Typed Name: Martin Stoddard Title: Principle Engineer, President Date: 06/23/2023 Page 17 of 25: RFP Electric System Master Plan I TECHNICAL PROPOSAL i 1 v OR ELECTRICAL E SYSTEM PLAN 1. 1 Martin Stoddard, President. Stoddard Power Systems 1600 VALLEY RIVER DRIVE, SUITE 380 0 EUGENE, 0R 97401 N PHONE (541 } 228 9353 Table of Contents SECTION1: Introduction........................................................................................................1 1.1 Project Understanding......................................................................................1 1.2 Company Profile...............................................................................................1 SECTION2: Qualifications......................................................................................................2 2AQualifications .................................................................................................... 2 2.2 Project Staffing...... .... .............. .......... _ ............. ........ _ ............ ...... ....... 2 SECTION3: Relevant Experience.. ........... ....... . ..... 11- ........... I ..... — .... — 3 3.1 Experience— ............ ................ ...... .................. ........................ — 3 3.2 Previous Work with the City of Ashland............................................................ 5 SECTION4: Scope of Work.................................................................................................... 6 4.1 Work Plan and Schedule.................................................................................. 8 SECTION5. References.......................................................................................................... 9 5,1 References.. .............. ...... ........... ............ .......... ............. - ... — ............ ... 9 SECTION6: Terms and Conditions.....................................................................................11 6.1 Contractual Terms and Conditions.................................................................11 SECTION7: Appendix...........................................................................................................12 7A Appendix A — Stoddard Power Systems Standard Rates...............................12 7.2 Appendix B — Resumes................................................................................. A2 TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN - 2023 ����0����~K���������k��� ��u��� x o��um o. INTRODUCTION u�^������� u w�^u� 1.1 Project Understanding The City of Ashland (City) is seeking proposals for developing an electrical master plan for the City's electric utility, The City serves customers from three step-down substations - Ashland, Mountain Avenue, and Oak Knoll, with a total of 10 feeders currently serving approximately 13,000 customers (meters). Mountain Avenue Substation was recently purchased by the City from BPA. The other two substations are owned by PacihCorp. |nthe past ten years, the City has implemented various upgrades iuthe system but significant growth from new developments along with the age of some of the electric assets has resulted in the need for an evaluation to determine prioritized improvements to allow the system to serve the City's customers while supporting growth without overstressing components. This proposal is organized based on the required submittal contents, Section 1 presents our understanding of the project. Section 2 summarizes our experience and qualifications and describes the structure of our project team. Section 3 describes the scope of work (task list) and timeline to complete the Electrical System Master Plan. Section 4 provides similar projects performed by the project team and their associated references, Section 5 introduces our assumptions and cost estimate. 1.3 Company Profile Stoddard Power Systems, LLC (SPS) is a Veteran Owned Small Business home based in Eugene, Oregon serving power generation, utility, industrial, and heavy commercial customers throughout the United States. Our staff consists of a group of professional engineers (licensed in Washington, Oregon, Alaska, Florida, California, Montana, Idaho, New Mexico, and Texas) and power systems experts with many decades of experience, Stoddard Power Systems offers a variety of electrical engineering services including power system design, electrical analysis and studies, troubleshooting, failure analysis, ountro|o, and more. Our team is proficient in all elements of utility engineering services including substation design, distribution design (overhead and underground), transmission design, protective relaying, planning studies, risk mitigation plans, power factor correction, interconnect studies, power systems analysis, and SCAUAdesign and integration. TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN -ovxn 1o//2 2.1 Qualifications Stoddard Power Systems is a qualified engineering firm providing consulting services to utility and other clients. We regularly provide system planning analysis for utility clients, Our typical approach includes an early comprehensive review with the customer to ensure a clear project definition and expectations. For this project the objective is well defined as evaluating the existing electrical system, load forecast, and major equipment inventory to develop a system improvemenUupgrade plan. Additionally, our engineers have many years of experience providing system planning studies and engineering services directly to the City of Ashland and we will be able to begin the project with an extensive knowledge of thoCity'a system. However, we will also take this opportunity to take a fresh look at the City's infrastructure and needs to ensure the recommendations presented are optimized for the current and expected needs, 2.2 Project Staffing Our project team will consist of the following personnel with their specific roles and expected project utilization. Resumes of significant team members are Included in Appendix (Section 7). We do not anticipate services from any aub-ounau|bana. Martin Stoddard, P.E. (1O96)—Project Manager, Engineer ofRecord, J|ej|mSong, P.E. (5O%)—Lead Project Engineer. Jerry Witkowski, P.E. (3OY6)—Project Engineer. Staff DmeiQnor/D after/udmXn(1UY6)—DonumentDraft|ngandAoaemb|y Note: Engineers' credential, experience, and proof of license (PE Licence No.) is provided in the personal resume |nAppendix 8. Table 1: Project Team Structure Project Manager / Engineer ofRecord Martin Stoddard, P.E Stoddard Power Systems 10% allocated to project Administrative ectrical En Elneers Sub -Consulting Engineers Design/Drafting/Admin Lead Project Engineer General Office Staff Jiajia Song, P.E. ... Stoddard Power Systems Stoddard Power Systems 10% allocated to project 50% allocated to project Project Engineer Jerry Witkowski, P,E, Stoddard Power Systems 30% allocated to project TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN —2o2o 2o/Yz SECTION 3: RELEVANT EXPERIENCE 3.1 Experience SPS currently is the on -call engineering service provider to several municipal utilities and electrical cooperatives. The table below lists and describes several recent projects with scope elements similar ho the City's project. This is a small subset of recent relevant projects completed by our engineers. Additional project examples can beprovided upon request. Table 2:List ofRelated Experience Project Name Project Description City of Bandon Description: The engineers at SPS are performing an electrical 10-Years System Planning system evaluation and developing an orderly and economical improvement plan for the City. The evaluation and capital Study [Emphasis: System improvement plan is intended to help ensure the electrical system has Planning Study] the operational capacity, reliability and flexibility to meet its planning Client: Jim Wickstrom, City of criteria, Bandon, Electric Department Date Completed; Ongoing, to be completed in December 2023. Bandon, OR 97411 PM: Martin Stoddard Engineers: Jiajia Song City of Drain Description: The engineers at SPS performed an electrical system 10-Years System Planning evaluation and developed an orderly and economical improvement plan for the City, The evaluation and capital improvement plan was Study [Emphasis: System developed to help the City ensure the electri6al system has the Planning Study] operational capacity, reliability and flexibility to meet its planning Client: Harold Burris, City of criteria. The study identified and recommended system improvements Drain, Electric Department that would allow the City to supply adequate quality power to serve 129 West C Avenue customers into the intermediate future (10 years), and practical Drain, OR 97435 improvements that will provide service into the long-term future. An 541-836-2037 arc -flash hazard risk evaluation was performed as a part of the project. PM: Martin Stoddard Date Completed: January 2021 Engineers: Jerry Witkowski, Jiajia Song City of Milton-Freewater Description: The engineers at SPS performed an electrical system evaluation and developed an orderly and economical improvement 10-Years System Planning plan for the City, The evaluation and capital improvement plan was Study[Emphas/s* System developed to help ensure the electrical system has the operational Planning] capacity, reliability and flexibility to meet its planning criteria, The study identified and recommended system improvements that will Client: Mike Watkins, City of allow the City to supply adequate quality power to serve customers Milton-Freewater into the intermediate future (10 years), and practical improvements 722 S Main St. Milton- that will help in providing service Into the long-term future, An arc -flash Freewater, OR 97862 hazard risk evaluation was performed as a part of the project. 541-938-5531 Date Completed, June 2020 PM: Jerry Witkowski TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN —uoux 3n//o Project Name Project Description Columbia Basin Electric I I Description: The engineers at SPS performed an electrical system Cooperative evaluation and develop an orderly and economical improvement plan evaluation for CBEC. The evaluation and capital improvement plan was intended - The evaluation Sy 1 1 10-Years System Planning ensure the electrical system has the operational capacity, to r to help I . System Study [Emphasis: System reliability and flexibility to meet its planning criteria, The study f I , la v X1 it reliability Planning] identified and recommended system improvements that will allow the Client: Brian Kollman, Coop to supply adequate quality power to serve customers into the Columbia Basin Electric intermediate future (10 years), and practical improvements for long - Cooperative term future operation. 171 W Linden Way Date Completed: February 2015 Heppner, OR 97836 541-676-9146 PM: Martin Stoddard Lane Electric Description: The engineers at SPS performed an electrical system evaluation and develop an orderly and economical improvement plan 10-Years System Planning for Lane Electric, The evaluation and capital improvement plan was Study [Emphasis: System intended to help ensure the electrical system has the operational Planning] capacity, reliability and flexibility to meet Its planning criteria. The Client: Doug Stockdale, Lane study identified and recommended system improvements that would Electric, allow Lane to supply adequate quality power to serve customers into 787 Bailey Hill Road the intermediate future (10 years), and practical improvements that Eugene, OR 97402 should be valid to provide service into the long-term future. Phone: 541-484-1151 Date Completed: July 2014 .PM: Jerry Witkowski Vera Water and Power Description: The engineers at SPS performed an electrical system evaluation and develop an orderly and economical improvement plan 10-Years System Planning for VERA. The evaluation and capital improve ment.plan was intended Study[Emphasis: System to help ensure the electrical system has the operational capacity, Planning] reliability and flexibility to meet its planning criteria, The study Client: Kevin Wells, Vera identified and recommended system improvements that would allow Water and Power Vera to supply adequate quality power to serve customers into the 601 N Evergreen Rd. intermediate future (10 years), and practical improvements that should Spokane Valley, WA 99216 be valid to provide service into the long-term future. Phone: 509-924-3800 Date Completed: June 2014 PM: Jerry Witkowski City of Ashland Description: Following the preparation of a 10 Year Planning Study, the engineers at'SPS developed a design for approximately 1.2 miles Hersey Street Underground of multiple conduit underground 15-kV feeder circuits from the Project [Emphasis: Mountain Avenue Substation along Hersey Street to N. Main Street, a Underground Feeder Design] busy residential and commercial area, The work included underground Client: Tom McBartlett, City of circuit duotbanks details and vault designs, with contract document Ashland, Electric Department preparation consisting of drawings and technical specifications for 90 N. Mountain Avenue bidding, Prepared cost estimates and assisted with Contractor award, Ashland, OR 97520 Project Total Cost: —$1AM 541-552-2314 PM: Martin Stoddard Date Completed,. October 2019 Electrical Engineers: Jerry Witkowski, TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN — 2022 4 of 12 3.2 Previous Work with the City of Ashland SPS engineers Martin Stoddard, Jerry Witkowski, and JIajIa Song have been providing engineering services to the City for several decades, The following is a short list of some of the significantprojects completed with the City, On -Call Engineering Service Provider, for over two decades. Providing engineering support to the Electric Department on various equipment sizing, design, protection setting review, large subdivision development, large EVcharge station, line extensions, nm|dendo|/cummomie| PVsource interconnection, technical document deve|opmant/updoho.grant application, etc. Wildfire Mitigation Plan, 2022. The intent of the wildfire mitigation plan is to document and review the City's existing wildfire policies and procedures and develop an up-to-date wildfire mitigation plan that meets all requirements of the 2021 SB 762 and Oregon Public Utility Commission (OPUC). The overall objective of developing and executing a wildfire mitigation plan is to minimize possible sources of ignition, improve the system resiliency ofthe electric network, andidentdyanduorneotineffuoUvaprooedumu. City of Ashland Hersey Street Underground Project, 2019. Following the preparation of a 10 Year Planning Study, the engineers at SPS performed design for approximately 1.2 miles of multiple conduit underground 15-kV feeder circuits from the Mountain Avenue Substation along Hersey Street to N, Main Street, a busy residential and commercial area, The work included underground circuit detail ductbanks and vault designs, with contract document preparation consisting of drawings and technical specifications forbidding. Prepared cost estimates and assisted with Contractor award. Oak Knoll Substation Feeder Controller Upgrade, 2018, Engineering design to replace the feeder protection controllers with Cooper Form 6, and provide updated protection and control settings. City ofAshland PVGenerution Interconnect Analysis, 3017. This project ipareview ofoptions, interconnect feasibility, and cost estimate for adding a large-scale PV generation facility and connecting it into the City'u existing electrical distribution oyatom. Mountain Avenue Substation Expansion, 2010, Engineering design to add three additional feeder$ to the MAS substation, including distribution rack expansion, control and protection design, etc. Reeder Gulch Hydro Power and Control Upgrade, 2009. Engineering design of new generator owihohgeernnd all controls. Control equipment included new protective m|aya. PLCo. HN1| Touohpanels, auto synchronizers, inverters, and all associated controls, We also provided complete control programming and startup and commissioning ofthe system. 18'YoarsSyntnm Planning Study, 2018. The engineers etSPS performed an electrical system evaluation and develop an orderly and economical improvement plan for the City, The evaluation and capital improvement plan was intended to help ensure the electrical system has the operational capacity, reliability and flexibility to meet its planning criteria. The study identified and recommended system improvements that would allow the City to supply adequate quality power to serve customers Into the intermediate future (1Oyaero). and practical improvements that should bovalid to provide service into the long-term future. Ashland Substation Feeder Controller Upgrade, 2011. Engineering design to replace the feeder protection controllers with Cooper Form 6, and provide updated protection and control settings. 1U-YoaroSystem Planning Study, 2OU3.The engineers ut SPSperformed enelectrical system evaluation and develop onorderly and economical improvement plan for the City. The scope was identical hathe one discussed above for 2O13. TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN -000c 5u(zz Our typical approach for a system planning study for small utility systems is to provide evaluation and analysis for u1D-yourspan. Specific elements include: Data Collection: Perform a walk-through of the City's electrical network with the City's Electrical Department to document system conditions for all major components. Inspection will include an evaluation of condition, We also work with City personnel to obtain system protection data including major fuses and relays auwell eehistorical meter data from the City and BPA. Load Forecast: Evaluate the City's system -wide growth patterns based on historical, recent (prior I 0-year period) and expected future growth, from data provided by the Electric Department and population/load projections from the City and BPA. Evaluate past electric energy and demand usage, in the month and seasonal patterns, to forecast future loading to be presented in summation tables. This data will be used to estimate feeder and substation peak loading through system analysis and \odetermine recommended system improvements. Planning Criteria: Establish Ued planning chh*riaand o�eoiiveoupon vvhiohahod' System annnU ra�realistic termand long-term planning should bobased, These planning standards are used tndetermine loading guidelines, the appropriate level of backup under outage conditions, economic conductor sizes, acceptable voltage drop levels, and improvement timing. Transmission and Substation Evaluation: Evaluate the existing transmission system facilities serving the City for interconnection and switching flexibility, looping capabilities, isolated segments, and overall operation and performance for power supply and delivery to the City's facilities. Also, evaluate the existing substation points -of -del Nery for equipment ratings, capacities, and configurations, This effort is to include consideration of reliability, protection components, protection philosophy, interruption frequency and duration, power availability and the ability tuserve growth, and operation and maintenance programs. Analysis of the Existing System: Evaluate the ability of the existing electric system to provide economical, high -quality service in terms of component loading, voltage levels, line losses, power factor, and reliability in the short-term and intermediate future, This effort includes a review of the existing system performance based on the following criteria to identify and determine cost- effective measures that can improve system performance: • System reliability o System capacity o System flexibility o System and feeder peak loads p System construction practices o operation and maintenance policies o Environmental sensitivity o System equipment aging o Identification oftrouble spots and poorly performing equipment o Review adequacy ofsystem record keeping Major Equipment Inventory Review and Replacement Schedule: Working with the city staff to review transformer, pole, and conductor inventory, and create a practical replacement schedule based onthe forecast and system improvement recommendations. TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN -o02o 6o/1z Other Considerations from Renewable Energy Resource Addition, Increased EV Charging Demand, Climate & Energy Action Plan, and Wildfire Mitigation Plan: o Evaluate the feasibility of adding large and small aoo|e renewable energy sources such aosolar, wind, small hydm, etc. o Provide system improvement recommendations based on the forecasted EV addition and associated demand pattern, o Recommendations for integration of the City's Climate and Energy Action Plan in the Electric System Master Plan n Recommendations for integration of the City's Wildfire Mitigation Plan in the Electric System Master Plan PowerFlow Analysis: Analyze the electric system circuits using computer modeling software. The system will be modeled on a system -wide three-phase basis using the EasyPower software package. The power flow analysis modeled the system for the High and Low load conditions: The Power Flow analysis is to be performed for the conditions noted above to identify various system configuration voltage drops, load balance, real and reactive power flows, and system losses o\each system bus aalabeled. Short Circuit Analysis: A short circuit analysis will be performed under the Base Case configuration to update the maximum fault availability throughout the system. The results will be presented in the Short Circuit Chapter with detailed fault data examples and analysis output reports. The short circuit ratings for all equipment will be evaluated for adequacy based on the expected maximum short circuit currents. Protective Device Coordination: Using the system model developed for the power flow and short circuit calculations, the system coordination and protection will be evaluated. For each distribution feeder a time -current curve coordination chart showing the devices listed below will be o Transformer damage curve u Conductor urinsulation damage curve n Maximum available short circuit symmetrical and asymmetrical fault current o Time -current curves ofprimary protection devices o Time -current curves ofsecondary protection devices v Time -current curves ofmajor backbone protection devices The results will be presented indetailed tabulation with recommended settings for existing protective devices. In addition, analyses of coordination charts and recommended protective device changes that will improve system reliability will be prepared and included. The development of a fusing application guide for the sizing of downstream fuses will also be provided. Prepare E\outr|o System Study Royod� A report summarizing the results of the study will be prepared that includes: o Documentation of references, planning odteha, related ca|cu\nUona, computer reports, and techniques used in the analysis. o Analysis and evaluation of the existing electric system, identification of alternative improvement options and suggested areas that need focused attention, TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN —oo2o 7u/o o Alist ofconclusions, recommendations, and proposed system improvements with projected construction timing and estimated costs. u System maps and analysis plots showing the configurations arid results of the various study cases, including recommended system improvements, 4.1 Work Plan and Schedule We will be ready to commence work within one week of notice to proceed, Based on this an approximate schedule for major tasks is provided in Table 3, This is a preliminary schedule and can be expedited or deferred as directed by the City. We will work closely with the City staff to develop a schedule that meets your requirements. Table 3:Work Schedule Task After Notice to Proceed Kickoff Meeting and Data Collection 2 Week System Analysis 8 Weeks Report Development 12 Weeks Submit Draft Report 14 Weeks Comments From City 16 Weeks Final Report Submission 18 Weeks TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN -xVcc 6nftc SECTION 5: REFERENCES 5.1 References Table 4: List of References Contact Info Services Provided Columbia Basin Electric Cooperative The engineers at SPS have provided engineering services for CBEC since 2002 including multiple Brian Kollman / Manager of Operations substation designs, power system studies, capacitor 171 W Linden Way bank designs and programming, transmission line Heppner, OR 97836 designs, and 10-year planning studies. Phone: 541-676-9146 brianke,columbiabasin,com Vera Water and Power Complete substation design in 2015 and 2016. Performed a 10-year planning study in 2014. Provided Kevin Wells / General Manager design which included provisions for easy expansion to 601 N Evergreen Rd. implement second transmission source and transformer Spokane Valley, WA 99216 bank, plus distribution rack extension, Provided design 509-924-3800 basis for other further substation improvements of other kwelis verawaterandpower.com substations with design work done by Vera's in-house engineers. We provided a complete SCADA system replacement in 2017. Monmouth Power and Light Provided engineering services for multiple developments and extensive underground design Mike Gregory / Acting Operation projects, including the feeder getaways from their newer Superintendent substation, Provided on -call support for substation 780 Echols St. 3 technical concerns, We are actively providing Monmouth, OR 97361 engineering services to MPL. 503-838-3526 mqre_qory@cLmonmouth.or.us City of Drain Provided engineering services for multiple developments, power system studies, wildfire mitigation Harold Burris / Lineman plan, and on -call support for substation technical 431 Payton Avenue concerns, Performed a 10-year planning study in 2021. Drain, OR 97435 We are actively providing engineering services to the 541-836-2037 City, pwforeman(cD ,,cityofdrain.org City of Bandon Provided engineering services for multiple developments, coordination studies, and on -call support Jim Wickstrom / Superintendent for substation technical concerns. We are currently City of Bandon, Electric Department performing a 10-year planning study (2023). We are 565 US-101, actively providing engineering services to the City, Bandon, OR 97411 TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN — 2022 9 of 12 Contact Info Services Provided 541-347-2437 x 233 iwickstromQci.bandon.or.us Northern Wasco County PUD The engineers at SPS have provided engineering services Including four substation designs/upgrades Garrett Mauritson / Staff Engineer (two of them are ongoing), hydro, powerhouse upgrade, 2346 River Rd, power system studies, backup generator design, etc., The Dalles, OR 97058 Phone: 541-298-3318 Garrett-Mauritson(a)nwascopud.org City of Milton-Freewater The engineers at SPS have provided engineering services for CMF since early 2000 including two Mike Watkins / Electric Superintendent substation designs, power system studies, wildfire City of Milton- Freewater mitigation plan, and 1 0-year planning studies, 722 S Main St. Milton-Freewater, OR 97862 Phone: 541-938-5531 Mike.Watkins(a)milton-freewater-oLgLv TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN — 2022 10 of 12 SECTION 6: TERMS AND CONDITIOilS 6.1 Contractual Terms and Conditions Stoddard Power Systems has astandard contract based on EJCDUcontract specifications. However, we are currently under contract with the City of Ashland and have accepted the City's terms and conditions. The contract between SPS and the City of Ashland is dated March 30, 2022 and we expect similar terms and conditions will be used for this contract. We do not anticipate any concerns regarding contract terms with the City, TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN -zocn 11v/Yo SECTION 7: APPENDIX 7.1 Appendix A — Stoddard Power Systems Standard Rates Attached externally. 7.2 Appendix B — Resumes Attached externally. TECHNICAL PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN — 2022 92 of 92 ATTACHMENT A- ENGINEER'S STANDARD RATES STANDARD HOURLY BILLING RATES Standard HnudvRates are set fo�hinthis AhechmentAand include aa\uheaand vvogeooa� topersonnel in'each billing class plus the cost ofcustomary and statutory benefits, general and administrative overhead, non -project operatingroets,endoparad|nQnoarginorprofL The Standard Hourly Rates are subject hoannual review. The rates set for inthis Attachment are effective through January 11,2024. SCHEDULE OF HOURLY RATES CLASS DESCRIPTION RATE EN5 Principal Engineer $185,001hr EN4 Senior Engineer $160.00/hr EN3 Lead Engineer $120.00/hr EN2 Staff Engineer $115.00/hr EN1/C4D EnA\noar/Dmai8nerl(natTech nioiaD/Drafter $SO.00/hr ADK8|N OMloo/Ad|n|n|stredvoSuppurt $56.00/hr EXPENSES Direct Expenses billed at cost plus 10%. 8uboonoVUantinvoices billed sdinvoice plus 1UY6 All materials billed atcost plus 15Y6 Page I of 1 Martin L. Stoddard, P.E. Principle Electrical E, nglrneer STO D DAR D ' 1 i VVI [ k'%' `> 'V ' x l l (AI ' ; Education MS, Elechical Engineering, University of Washington BS, Electrical Engineering, Oregon State University Professional EngineerinI4 Registration Oregon 70823PE Washington 51452 Montana PEL-PE-LIC-31107 Florida 84826 Alaska 130554 Work Experience Mr. Stoddard has over 25 years of experience in power system design and analysis and is the owner and president at Stoddard Power Systems, LLC. Prior to starting Stoddard Power lie was the Chief Engineer and director of engineering at OS Engineering, the engineering division of Olsson Industrial Electric, where he managed a department of-40 engineers and technicians and provided engineering support to over 200 electricians. Prior to OS Engineering lie was co-owner of CVO Electrical Systems, LLC, a small consulting firm specializing in power system design and analysis. Mr. Stoddard was a researcher at the Pacific Northwest National Laboratory (PNNL) in Richland, Washington where he conducted research in power system analytics and control system security. Prior to PNNL, Mr. Stoddard worked as a consulting engineer at Electrical Systems Analysis (ESA) where his responsibilities included the performance of power system studies and the design and integration of electrical system LEDs and SCADA control systems. Mr. Stoddard was also a U,S, Navy Submarine Officer where he operated and maintained a submarine nuclear propulsion plant, His responsibilities included the maintenance and operation of the 450 VAC distribution system, the mechanical systems, and the control systems associated with the ships nuclear propulsion plant, During his tour he qualified as a Naval Nuclear Engineer and served as the ship's Assistant Engineer. Mr. Stoddard has considerable expertise in the design, programming and integration of a wide range of Intelligent Electronic Devices (IEDs), Programmable Logic Controllers (PLCs), and Supervisory Control and Data Acquisition (SCADA) systems, He has also performed numerous power system studies including short circuit calculations, equipment duty evaluations, protective device coordination, arc -flash hazard analysis, and harmonic analysis. Representative Projects at Stoddard Porver Systems RS Derr GSU Transformer Relocation — Lead design engineer for a design build project to relocate two 80 MVA GSU transformers from the hydroelectric dam tailrace to a new switchyard extension. Provided site plans, containment design, transmission tower design, fire walls, and 2000 A cable bus duct design, Paster Dam Electrical Reliability Upgrade — Lead design engineer for a major electrical renovation of the Foster Dam powerhouse including new 4160V switcingear, double ended 480V substation, three 480V'MCCs, 1700 Ahr battery batik, redundant battery chargers, redundant preferred AC inverters, battery monitoring system, relay control panels, and a renovated and upgraded diesel generator room. Representative Projects at OS Engineering Little Goose Station Service Transformers — Lead engineer for the prime contractor on a station service upgrade involving the replacement of two class 1, water cooled power transformers. Responsibilities include coordinating supplier selection, submittal reviews, technical interface with the US Army Corps of Engineers design team, writing commissioning plans and serving as commissioning engineer. The Dalles Navloek,— Lead engineer for the electrical contractor on a complete electrical and controls replacement of The Dalles Navlock system involving the replacement of double ended unit substation, motor control centers, switchboards, and controls and drive systems for an upstream radial arm gate and a downstream miter gate. Responsibilities include coordinating supplier selection, submittal reviews, technical interface with the US Army Corps of Engineers design team, writing commissioning plans and serving as commissioning engineer. PAGE 1 of 7 Vera Water and Power 16111 Avenue Substation, Spokane, WA — Project engincer on a complete substation design for a new distribution substation with a new 115kV tap, 15/20/25 MVA transformer, regulator bank, distribution rack, and four (4) feeders with reclosers and controls, Provided protective device relays settings, design reviews, customer training, commissioning, and final acceptance inspection. LUS NFPA 70E Training— Developed a training course and instructed approximately 35 operators and technicians in electrical safety and breaker operations associated with the Lafayette Utility System (LUS) steam and combined cycle power plants. Course instruction included topics from NFPA-70E, NESC, and other standards. Western Interlock Power Quality Study and Analysis, Rickreal, OR -- Principle engineering for the investigation and correction of power system deficiencies at the plant in Rickreal, Oregon. Power quality issues leading to system trips were investigated and a number of deficiencies were found both in the distribution equipment and service supply. Electrician support for the project was provided by Olsson. Roseburg WM PT Analysis —Lead engineer for the investigation of PT failures on the distribution line intertie between the Roseburg Waste Management generation system and the utility distribution line, Performed system monitoring and analysis of ferroresonance conditions and provided recommended corrective actions. EWER Crest Pump Station Design, Eugene, OR —Lead design engineering for the design of replacement distribution equipment for the utility pump station to bring the station rip to code compliance, The project included a field verification of existing components, written report of recommended corrective actions, design drawings of system modifications, and services during construction. HC&S System Analysis— Lead engineer in the investigation of surge events and stability problems associated with the electrical distribution of the HC&S Sugar Mill in Maui, Hawaii. Performed detailed review and analysis of relaying, grounding, and transient conditions in the system and provided a detailed report with recommendations for corrective actions. Dexter Dam ERU— Lead engineer for the prime contractor on an electrical reliability upgrade involving the replacement of three double ended station service unit substations. Responsibilities include coordinating supplier selection, submittal reviews, technical interface with the US Army Corps of Engineers design team, writing commissioning plans and serving as commissioning engineer. Grace Arc-Flaslr Study, Albany, OR — Principle engineering for an are -flash hazard and short circuit study for the Grace Chemical Plant in Albany, OR. Study included a complete inspection of the existing system and the development of system improvement recommendations and analysis results. RFP Missoula Forming Line — Principle electrical engineer on a new service tap and substation for a particle board forming line that included a new electrical room at the Roseburg Forest Products Missoula Particleboard plant Included specification and design of a replacement 2000kVA substation transformer, PDC, MCCs, lighting, grounding, variable frequency drives, and metering. Responsible for all drawings, specifications, and protective device settings. Hydroelectric Powerhouse Startup, Dorena Hydro LLC, Cottage Grove, OR —Designed generator high resistance ground system, all, terminal chamber, and surge protection for a two 12.47kV generator hydroelectric power plant. Performed engineering assessment of the system and commissioned the generators and protective relays, Performed analysis and design assistance for a shunt excited DC motor drive hydraulic pump for the gate operators. Compressor Room Design and H-Frame Reconstruction, Roseburg Forest Products, Weed, CA — Senior engineer on a new compressor room electric distribution system including retrofit of existing substation PDC to add new grounding transformer and 800A feeder to compressor room, new 800A PDC, lighting, grounding, and distribution equipment. Provided feasibility analysis and preliminary design for the replacement of an H-Frame tower with 2400V distribution to a padmount VFI configuration, Pump 4 Disassembly and Forensic Analysis, US Army Corps of Engineers John Day Dam, Rufus, OR — Technical lead for the prime contractor on a deconstruction and forensic assessment of a 45011p, vertical drive pump for the John Day Dam North Shore Fish Ladder system. Coordinated development of disassembly scope and let technical teams from Advanced American Construction, the US Army Corps of Engineers, and Power Engineering, PAGE 2OF7 Substation Main Breaker Troubleshooting, Oregon State University Energy Center, Corvallis, OR — Electrical engineer, provided technical troubleshooting when the main 20,8kV breaker (breaker 52-1) failed to close following an external fault, Identified the root cause as a remote trip and enable system with the utility supplier Pacificorp and designed a seal in annunciation system to provide operators indication of remote trip. North Shore Hydroelectric Powerplant Backup Generator, Northern WASCO County PUD, The Dalles, OR — Designed a backup generator system and outdoor building to provide automated backup power for the north shore fish ladder hydro electric power plant. System included a 125kW generator, load back, transfer switches, generator building, underground distribution, and automated load shedding scheme. Provided design drawings, specifications, and bid documents, Vencer Dryer Replacement, Roseburg Forest Products, Weed, CA — Lead design electrical engineer on a replacement Veneer Dryer and new electrical room for the RFP Weed Veneer plant. Included specification and design of a replacement' 1500kVA substation transformer, PDC, MCCs, lighting, grounding, and metering, Developed drawings, specifications, and protective device settings, Developed short circuit model for system analysis. Stud Mill and Mill A Load Flow Study, Seneca Sawmill, Eugene, OR— Senior electrical engineer for a load flow study of the Seneca Sawmill Stud Mill and Mill A medium voltage feeders and Substation A I, A2, and A3 480V distribution, Coordinated metering points, data collection, analysis and reporting for the load flow analysis. Provided written report of analysis results. Board Edger Replacement, Dillard Sawmill, Roseburg Forest Products, Dillard, OR — Lead design engineer a new MCC room and high resistance ground system for a replacement board edger. Designed included PDC retrofit, 1200A MCC, lighting, auxiliary systems, lockout panels, cable and conduit schedules, and substation high resistance ground system. Provided stamped design drawings and components specifications. Modeled system in EasyPower and provided coordinated protective device settings. Mill Load Flow Study, Weed Vencer Plant, Roseburg Forest Products, Weed, OR — Senior engineer a mill wide load flow study. Included data collection for most major 2400V feeders and 480V substations. Provided a written report detailing system loading and recommendations for system improvements. Class 1, Division 1, Chemical Storage Building, Roseburg.Forest Products, Dillard, OR — Senior engineer for the design of electric distribution for a hazardous material storage building. Design included sealed Class I, Division I electrical distribution and lighting, Provided stamped design drawings, Non -Combustible Gas Tower Grounding, International Paper, Springfield, OR — Lead design engineer for the grounding and lightning protection of a NCG lattice tower, Provided stamped design drawings with grounding and lightning protection details and equipment bill of materials. Distribution Improvements Feasibility Study, Timber Products, Yreka, CA— Provided feasibility analysis and preliminary design of replacement medium voltage service and main 480V substations. Design included medium voltage feeders, substation transformers, and main power distribution centers, 69kV Brealcer CT Replacement, Weed Veneer Plant Substation, Roseburg Forest Products, Weed, CA — Provided engineering assistance in the replacement of bushing current transformers on a 69kV substation breaker. Engineering assistance included coordination of metering accuracy, secondary circuit verification, breaker SF6 evacuation, and post replacement testing. The Dalles SCC Functionality Modifications, US Army Corps of Engineers The Dalles Dam, The Dalles, OR — Senior engineer for the design of a replacement annunciation system, governor controls upgrade, main unit metering, and redundant governor PLC network architecture for The Dalles dam. Design services included a 30% feasibility design report and review, 60% preliminary design report and review, and 100% complete design and review, Paper Machine #2 Transformer Replacement, Georgia Pacific, Halsey, OR— Designed a replacement transformer system and enclosure with medium voltage primary disconnect, four 1000kVA 12.47kV to 480V transformers, and primary and secondary fusing, Design included equipment specifications and detailed drawings, PAGE 3 of 7 Preferred AC Inverter and Distribution Replacement, The Dalles Lock and Dam, US Army Corps of Enghicci,s, The Dalles, OR — Lead design engineer for a replacement fully redundant preferred AC system for The Dalles Dam. System consisted of dual 30kVA inverters, dual lOkVA inverters, backup transformers, main distribution boards, dual feeders, and the replacement of all remote panels, Design included detailed drawings, specifications, commissioning specifications, functional test plans, and submittal coordination. PAGE 4 OF 7 Representative Projects at CVO Electrical Systems, LLC Bonneville PH2 480V Station Service Switchgear Replacement, US Army Corps of Engineers, Cascade Locks, OR — Lead engineer for the prime contractor on a station service upgrade involving the replacement of three double ended station service unit substations, Responsibilities include coordinating supplier selection, submittal reviews, technical interface with the US Army Corps of Engineers design team, writing commissioning plans and serving as commissioning engineer, Specific engineering scope included transient analysis for vacuum breaker switching transients, customized switchgear layout and design, relaying and transfer control programming, fiber optic arc -flash detection design, air terminal chamber design, and the technical challenges associated with the replacement of station service switchgear in an operating power plant without a loss of service or reliability GSU Substation and Relaying Replacement for The Dalles North Shore Hydro, Northern Wasco County PUD, The Dalles, OR — Lead engineer for the design, procurement, installation, and commissioning of a replacement primary unit substation and protective relaying for a 6,5MW hydroelectric power project on the north fish ladder of The Dalles Dam, Developed detailed design drawings, procurement specifications, and provided all protective relay settings, John Day Dam North Fish Ladder AWS Pump Replacement Project, US Army Corps of Engineer, Rufus, OR — Lead engineer for the prime contractor on a fish ladder auxiliary water supply system replacement involving the design and installation of a complete control building and electrical distribution system. Performed detailed designs of the electric distribution system including double ended substation, distribution panels, VFDs, UPS, building auxiliaries, cable vault, and pump chamber cable tray. Provided cable pull calculations for 15kV cable pulls. Coordinated all manufacturer designs. Developed commission plans and served as lead commissioning engineer. The Dalles Dam Station Service Improvements, US Army Corps of Engineers Dalles Dam and Lock, Dalles, OR — Lead engineer for the prime contractor on a major reliability upgrade to the Dalles dam hydroelectric station service system including the replacement or modification of the majority of the medium voltage and low voltage station service distribution system, Responsibilities included coordinating manufacturer designs, submittal reviews, technical interface with the US Army Corps of Engineers design team, commissioning plan development and serving as commissioning engineer. Lead designer for several design build changes including new multi -zone GSU relaying for TI transformer, 480V transfer controls, complete DC system design, replacement unit substations FSQ5 and FSQ6, medium voltage lighting feeder transfer switches, and an automated control system for station service transformer cooling., Detroit/Big Cliffs Dam Electric Reliability Upgrades, US Army Corps of Engineers, Detroit, OR —Lead commissioning engineer for prime contractor on LVA and MVA equipment, Coordinated submittals, developed commissioning plans and served as commissioning engineer for replacement medium voltage and low voltage switchgear, current limiting reactors, and station service transformers. Wren Substation Relaying, Consumers Power Inc., Pliffornath, OR — Lead engineer, provided protective device relay settings for replacement SEL31 IC and SEL787 relays installed to replace existing ABB MSOC and older electromechanical relays at the. Wren Substation, John Day Dam North Nish Ladder 13.8kV Feeder, US Army Corps of Engineer, Rufus, OR — Lead engineer for the electrical contractor responsible for new feeder taps and distribution equipment. Coordinated all engineering activities associated with two isopbase bus taps, current limiting reactors, and medium voltage switchgear. Developed commissioning plans and served as lead commissioning engineer. 10 MG Reservoir Improvements, Canby Utility Board WTP, Canby, OR —Lead systems integrator and electrical engineer for the 1311 Street 2.0 million gallon reservoir expansion project. Designed and integrated level controls and PLC programming for reservoir integration into City water control system. Reeder Gulch Hydro Power Plant Improvement, City of Ashland, Ashland, OR — Lead design engineer and project manager for the replacement of the switchgear and control system for the City's Reeder Gulch hydro power plant. Design included a fully automated autosynchronizing system and complete generator protection system, Designed and integrated a SCADA system utilizing the City's existing fiber optic network integrating substation LEDs, hydro generation controls, and remote capacitor banks, Provided analysis and settings for feeder sectionalizing with new reclosers for the power plant tie,, Developed commissioning plans and served as lead commissioning engineer, Power System Study, Providence St, Vincent Medical Center, Portland, OR— Lead engineering for an arc -flash hazard and short circuit study for normal and emergency systems for the Providence St, Vincent Medical Center PAGE 5 Or 7 Campus including Critical Care, West Pavillion, Main Hospital, East Tower, Surgery Tower, and East Pavilion buildings. The study involved the development, field verification, and analysis of an 800 bus model in SKM software, Backwash Pond System Improvements, Canby Utility Board WTP, Canby, OR— Lead systems integrator for the integration of new backwash pond controls, river intake pumping, raw water quality, washwater control, and remote pump station controls. Included Cimplicity HMI programming, GE Series 90-30 PLC programming, Horner PLC and touchpanel programming, wireless network integration, and replacement autodialer system. Condon Substation and 1151N Conversion Project, Columbia Basin .Electric Cooperative, Heppner, OR — Project engineering in a conversion project to increase transmission voltage from 69kV to 115kV. Project included replacement of Condon Substation transformer and backfeed of Sniption Substation, Represented the utility at factory witness testing at the transformer manufacturer facility. Provided replacement substation relaying design and assisted with replacement circuit switeher and transmission line design. SCADA System Integration, Consumers Power Inc., Philomath, OR— Provided SCADA system integration and design for Wonderware control system. Integrated multiple IED platforms and maintained the SCADA system covering the complete utility system, Integrated new, motor operated transmission disconnects and new Lebanon Substation relays. Power System Study, Hickam Air Force Base, HI — Lead engineer for the performance of a complete power system study including short circuit evaluation, protective device coordination, load flow analysis, and are -flash hazard analysis on a newly constructed C17 hangar and maintenance shop. Motor Start Analysis, Columbia Basin Electric Cooperative, Inc,, Heppner, OR —Provided computer modeling of the distribution system under multiple scenarios for motor start evaluation and power flow analysis. Provided feeder improvement recommendations to allow anticipated system growth. Water Treatment Plant Expansion, Canby Utility Board WTP, Canby, OR —Lead systems integrator for the Water Treatment Plant Expansion project and Backwash Pond project with responsibilities including programing GE Series 90-30 PLCs, Horner PLCs, PLC communications with GE Profrcy Machine Edition, and HMI programming and screen development with GE Cimplieity HMI. Provided startup and testing assistance including PID loop tuning and troubleshooting with closed loop control of high service pump VFDs, Representative Projects at Electrical Systems Analysis Generator Power Quality Analysis, Vestas-American Wind Technology, Portland, OR— Field engineer, performed data collection and analysis for wind turbine generators determining generator characteristics and measuring characteristic harmonics of operating turbines, Project engineer in a laboratory analysis of failed capacitor banks, Easypower Software Analysis Instructor, Various — Provided classroom instruction to engineers on the use of EasyPower software for building system models and performing short circuit, coordination, load flow, and arc flash analysis. Provided instruction for open enrolled classes in various locations as well as custom site instruction for PPL in Butte, Montana, Colonial Pipeline in Alpharetta, Georgia, and Boise Cascade in DeRidder, Louisiana. Power System Analysis, Century Aluminum, West Virginia —Project engineer, coordinated field data collection, developed EasyPower model, and performed analysis for a power system study including arc -flash analysis for the Century Aluminum plant in West Virginia. Power System Analysis, NEGT Salem Harbor, Salem, Mass — Project engineer, coordinated field data collection, developed EasyPower model, and performed analysis for a power system study including arc -flash analysis for the NEGT Salem Harbor power plant in Salem, Massachusetts, Power Factor and Capacitor Bank Placement Study, City of Milton-Freewater, OR— Project engineer, developed system models of the City of Milton-Freewater 12.47kV distribution system, Modeled system loading and power factor correction capacitor bank placement impacts for correction and voltage effects. Evaluation of IEEE 519 Compliance at Maher Terminal, Rockwell Automation, Maher Terminal, NX — Served as project engineer for the field data collection and harmonic analysis of DC drives on Maher Terminal cranes. Analyzed system loading conditions, IEEE 519 compliance, and voltage distortion at 26kV point -of -common -coupling, PAGE 6 of 7 Substation Relay Replacement, City of Milton-Freewater, OR — Served as lead project engineer for the design, integration, and programming of replacement substation feeder relays from older elect roni eclian I cal relays to modern microprocessor based SEL35 IS relays, SCADA System Integration, Canby Utility Board, Canby, OR —Lead engineer providing innovative SCADA system integration for the substation automation control system including fiber optic system interfacing with Intelligent Electronic Devices (IEDs), IED programming and configuration, report generation, time synchronization, and WonderWare Human Machine Interface (HMI) configuration. Municipal SCADA System Replacement, City of Milton-Freewater, OR — Served as lead project engineer for the design and integration of a complete distributed SCADA control system for the upgrade of the City's Electric and Water systems utilizing an Ethernet backbone on a fiber optic network. Provided computer simulation modeling of distribution feeders and customer motors for the determination of motor starting effects on system parameters. Coordinated and programmed substation distribution breaker controllers and transformer protection relays, Inter -connection Study, Boise Cascade, Medford, OR — Project engineer, developed one -line diagrams of the plant electric distribution system and assisted in the completion of a small generating facility interconnection request for interconnection with the Pacific Power and Light distribution system. Power System Analysis, Alcoa Corporation — Intalco Works, Ferndale, WA— Project engineer, performed computer calculations for Arc Flash hazard determination and Personnel Protective Equipment (PPE) requirements for the electric distribution system of a large aluminum smelter facility. Power System Analysis, Georgia Pacific, Camas, WA — Lead engineer for a short circuit, coordination, and arc -flash study of the Camas Mill in Camas, Washington, The study involved the development of an over 400 bus model and the analysis of electrical equipment from 69kV down to 208V, Power System Analysis, Hawaiian Commercial and Sugar Company, Maui, HI — Project engineer, provided computer simulation of high, medium and low voltage systems for power flow and short circuit analysis of the HC&S power distribution system, Created Time Coordination Curves (TCCs) for the coordination study of all major breakers and relays. Generation Intertie Relaying, Roseburg Forest Products, Roseburg, OR — Project engineer, programmed and interfaced the cogeneration plant Siemens meters and the intertic SEL-31 IC relays. Provided computer simulations evaluating system alterations and providing updated short circuit study data. Power System Analysis, City of Blaine, Blaine, WA — Project engineer, provided a computer model of the City's distribution system for load flow and motor starting analysis, and for protective device coordination. PAGE 7 OF 7 3injin Song, Ph.D., P.E. Senior Electrical Engineer {tr, Education Ph,D, in Electrical Engineering, Oregon State University B,S, in Electrical Engineering, Zhengzhou University of Aeronautics, China Professional EnQincerlim Registration Oregon 90661 PE Washington 20110017 California E24431 Texas 138215 Work Experience Mr, Song is a Senior Electrical Engineer at Stoddard Power Systems with more than ten years of experience in engineering research, analysis, and design of electrical systems from transmission down to distribution levels. He is the lead engineer in the engineering analysis group, Prior to joining Stoddard Power Systems, Mr. Song worked at OS Engineering/Olsson Industrial Electric as an Electrical Engineer directly after graduating from Oregon State University in 2015. During his time at OS Engineering, his roles and responsibilities mainly focused on designing utility and industrial electrical systems, power system studies (including arc -flash, short circuit, load flow, protective protection, harmonic analysis, transient studies, and NERC PRC compliance analysis), system planning and feasibility studies, and site investigation and data collection. Mr. Song also worked as a Research & Teaching Assistant at Oregon State University from 2010 — 2015. His research specialized in dynamic modeling of power system cascading outages and mitigation schemes, energy storage, and PMU placement in various applications. Mr, Song has published multiple technical papers in IEEE journals and conferences. Representative Proiects VERA Water and Power,l6th Avenue Substation, Spokane, WA — Project engineer participating in the transformer and circuit switches control schematic, station service, protective setting, and control panel design. Columbia Basin Electric Coop., Fossil Substation, Heppner, OR — Project engineer participating in the transformer and circuit switcher control schematic, station service, protective setting, and control panel design. Columbia Basin Electric Coop., Sand Hollow Substation, Heppner, OR — Project engineer participating in substation structure and foundation, transformer and circuit switcher control schematic, station service, protective setting, and control panel design. Providence St. Vincent Medical Center, Power System Study, Portland, OR — Project engineer for an arc -flash risk assessment and short circuit study for both normal and emergency scenarios, The study includes field data collection, model development & verification in SKM, analysis, and reporting the findings such as code violation, protective device miscoordination, over -duty equipment, etc. Oregon State University, Corvallis, OR — Project engineer for an arc -flash risk assessment and short circuit study. The study includes field data collection, model development & verification in EasyPower, analysis, and reporting findings such as code violation, protective device miscoordination, and over -duty equipment. Old Castle Materials, River Bend Sand and Gravel, Salem, OR — Project engineer for a power system study including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Old Castle Materials, Eugene Sand and Gravel, Eugene OR — Project engineer for apower system study including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, ATI Cast Products, Building H, Salem, OR — Project engineer for a power system study including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, L Sty System Study, USACE, The Dalles Dam — Project engineer for an are -flash risk assessment and short circuit PAGE 1 OF 3 study forvarious scenarios. The study includes data collection, model development& verification in SKM, analysis, and reporting the findings such as code violation, protective device iniscoordination, over -duty equipment, etc. Seneca Sawmill, Eugene, OR — project engineer to provide engineering support for are -flash risk assessment and protective device coordination settings while the project progresses. 57th St, Pump Station, Springfield Utility Board — Project engineer for electrical distribution design of the pump station. Hamlin Pump Station, Springfield Utility Board — Project engineer for electrical distribution design of the pump station, Harmonic Analysis (IEEE 519 Compliance) at FSQ2, USAGE, John Day Dam — Project engineer for a harmonic analysis of three 450 lip VFDs in order to confirm that the voltage and current distortions caused by the drives are within the acceptable limits that are specified in IEEE Standard 519, 75MW PV Farm Feasibility Study, Columbia Basin Electric Coop., Hepliner, OR — Project engineer for an analysis of interconnecting feasibility for adding a large-scale Photovoltaic (PV) generation facility into the Columbia Basin Electric Cooperative's (CBEC's) transmission system. IOMW PV Generation Interconnect Analysis, City of Ashland, OR — Project engineer for an analysis of interconnecting feasibility for connecting a large-scale Photovoltaic (PV) generation facility into the City's existing electrical distribution system, This engineering investigation evaluated integrating photovoltaic systems with different generation outputs ranging between 2.5 MW and 10 MW. Grain Millers, Eugene, OR - Project engincer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Van's AWeraft, Aurora, OR - Project engineer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Northern Gold Foods, Junction City, OR — Project engineer to support the industrial power distribution design for a large food processing plant in compliance with NEC and NESC codes, MGC Pure Chemicals, Forest Grove, OR— Project engineer to support the industrial power distribution design for a Mitsubishi chemical processing plant in compliance with NEC and NESC codes, NORPAC Foods Inc., Brooks, OR - Project engineer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, SENECA Sawmill, Noti, OR - Project engineer for a power system study including data collection, modeling, are - flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, Weyerhaeuser TOPS Facility, Springfield, OR - Project engineer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, Weyerhaeuser Snow Peak, Lebanon, OR - Project engineer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Montpelier Generating Station, Montpelier Indiana —NERC PRC-025-2 and PRC-027-1 compliance evaluation of the Montpelier station to verify the load -responsive protective relay settings provide the desired protection while meeting NERC PRC requirements. Panda Hummel Station, Selinsgrove, Pennsylvania—NERC PRC-025-2 and PRC-027-1 compliance evaluation of the Hummel station to verify the load -responsive protective relay settings provide the desired protection while meeting NERC PRC requirements, Tejas Power Generation Station, Houston, Texas —NERC PRC-0 19-2, PRC-024-3, PRC-025-2, and PRC-027-1 compliance evaluation of the Tojas station to ensure the generator capability, voltage and fi-equency controls and PAGE 2 OF 3 protection, and protective relay loadability and coordination comply with NERC PRC requirements. Shell Polymers, Monaca, Pennsylvania —NERC PRC-024-3, PRC-025-2, and PRC-026-1 compliance evaluation of the Shell Polymers power station to ensure generator voltage and frequency controls and protection, protective relay loadability, and the relay performance during power swing events comply with NERC PRC requirements, Franz Bakery, Springfield, OR - Project engineer for a power system study including data collection, modeling, arc - flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Springfield Utility Board, Springfield, OR - Project engineer for a power system study of their water facilities including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, Rainbow Water District, Springfield, OR - Project engineer for a power system study of their water facilities including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, Genesis HealthCare, Mose Lake, WA - Project engineer for a power system study of the Columbia Crest Center including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. City of Drain, OR - Project engineer for a system planning study and arc -flash study of their electrical distribution system to ensure that the City's electrical system has the operational capacity, reliability, and flexibility to meet long- term planning criteria, as well as arc -flash exposures of their major facilities. . Pleasant Valley Compressor Station, Centerville, VA - Project engineer for reliability analysis of motor fast bus - transferring, including options of transferring sources at 13.8 kV or 480 V. Readiness Center, Tri-City, WA — Project engineer to support the commercial power distribution design for a military readiness center in compliance with NEC and NESC codes. Stella Jones, Tacoma, WA - Project engineer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. WR Grace, Albany, OR - Project engineer for a power system study including data collection, modeling, are -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, Lafarge, Eugene, OR - Project engineer for a power system study including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Parker Hannifin, Eugene, OR - Project engineer for a power system study including data collection, modeling, arc - flash risk assessment, short circuit study, and equipment duty analysis for various scenarios, Seneca Sawmill, Eugene, OR - Project engineer for a power system study including data collection, modeling, arc - flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Seven Feathers Casino, Canyonville, OR - Project engineer for a power system study including data collection, modeling, arc -flash risk assessment, short circuit study, and equipment duty analysis for various scenarios. Newark Energy Center, Newark, NJ —NERC PRC-0 19-2 and PRC-024-3 compliance evaluation of the Newark facility to ensure property coordinated voltage protective system settings, generating unit controls, limit functions, and equipment capabilities per the requirements of NERC PRC-019-2 and PRC-024-3, Green Country Energy, Jenks, 0K —NERC PRC-019-2 and PRC-024-3 compliance evaluation of the Green Country facility to ensure properly coordinated voltage protective system settings, generating unit controls, limit functions, and equipment capabilities per the requirements of NERC PRC-019-2 and PRC-024-3. PAGE 3 OF 3 Jerry D. Witkowski, P.E. Senior Electrical Engineer Education B.S. in Electrical Engineering, Oregon State University Professional Engineering Registration Washington 30577, Oregon 16733PE, California E14639, Idaho 7872, New Mexico 13273 Work Experience Mr. Witkowski has been providing electrical utility, industrial design and study services for the past 38 years, His design involvement includes detailed design, project management and lead engineering experience in transmission, substation, and overhead/underground distribution systems. He has unique underground design experiences which include multiple circuit arrangements up 6 miles in length, and distinctive aspects such as, routes paralleling and crossing scenic highways, I-5 crossings, river crossings, railroad crossings, bridge crossing, unique bore and casing crossings, wetland and cultural conditions requiring archeological on -site excavation investigations. He has also provided many unique design services including special grounding applications, SCADA systems, var control, system voltage conversions, and various co -generation interconnection designs. His engineering services have included technical specification and contract document preparation, contract review, award recommendations, cost estimating, construction scheduling, management and on -site resident services. He has also performed many electric utility system planning studies, system analysis, and protection studies, plus various specialized studies for utility and industrial clients. These studies typically contain the following tasks: growth forecasts, existing system evaluation, establish design criteria, system power flow and short-circuit analysis, protective device coordination, improvement alternatives, recommendations and improvement plans, plus associated costs estimates. Representative Projects (Reduced, additional examples available upon request) Tahoe- Donner Association, Truckee -Donner, PUDr Underground Feasibility Study, Truckee, CA —This project although completed in 2006, is very similar to The Dalles Utility Undergrounding Feasibility Study described in the NWCPUD RFP. This work involved determining an approach to underground all utility overhead infi•astructure in a heavily wooded mountainous area adjacent to the Tahoe National Forest consisting of over 7,000 homes, and local commercial facilities. The overhead facilities included the PUD's electric primary, secondary and service circuits, two communication company facilities and the utility's SCADA system. The work involved determining underground design plan and elevation configurations without interfering with existing below grade infrastructure, cost estimates, construction phases and scheduling, complications, cost sharing and potential approaches to fimding. Dufur Substation and System Voltage Conversion, City of Dufur, OR—NWCPUD Performed design, contract documents and technical specifications for the substation voltage conversion and upgrade which included major equipment and Contractor award, field construction inspection, and startup services. Substation equipment was arranged with a flexible switching open -rack outdoor configuration. All components and control systems utilized modern state state-of-the-art technology. This project included design and sequencing for voltage conversion of the entire Dufur community. West 2" d Street Substation, City of the Dalles, OR — NWCPUD Performed design, contract documents and technical specifications for the substation new control house and relay/control conversion, which included major equipment and Contractor award, field construction inspection, and startup services. Substation and Transmission Line Design, Columbia Ridge Substation, WA — Prepared substation and transmission line design for a Waste Management Columbia Ridge 25 MW gas- to -energy co -generation facility to interface with CBEC/BPA, including the 115 kV x 4.16 kV substation design with a connection to the generator facility and 4 miles115 kV pole design to interconnect with CBEC and BPA. PAGE 1 OF 2 Mountain Avenue Substation Distribution Rack Design, City of Ashland, Ashland, OR — Performed design for the expansion of the City of Ashland, Mountain Avenue Substation distribution rack including site -work, structure details, sectionalizing devices and controllers, control house modifications and feeder getaways, Services included controller configuration, settings and programming in addition to SCADA system configuration to implement fiber-optic communications. The project included complete contract document preparation with technical specifications for material procurement and construction. City of Milton -Freewater, Milton Substation, Milton-Freewater, OR — Performed design for the expansion of the Milton Substation including site -work, structure details, sectionalizing devices and controllers, control house modifications and feeder getaways. Services included controller configuration, settings and programming in addition to SCADA system modifications, The project included complete contract document preparation with technical specifications for material procurement and construction. Monmouth Power and Light South Substation Getaways and OR99W Underground Projects, Monmouth, OR — Performed design for six underground 15 kV substation feeder getaways, including four miles of congested underground routed circuit detail ductbank and vaults design, with contract documents and technical specifications for Contractor construction, Marc recently performed design for approximately one (1) mile of multiple conduit underground 15 kV feeder circuits along State Highway OR99W and through the congested Monmouth downtown commercial area, The work included underground circuit detailed ductbanks and vaults designs, with contract document preparation consisting of drawings and technical specifications for bidding purpose, cost estimates and contract award, Canby Utility Westcott Substation and Knights Bridge Substation Projects, Canby, OR — Performed design, contract document and technical specifications preparation for Owner furnished equipment and Contractor award, site inspection, and startup services for the 115-57 x 12,4717.2 WA Westcott Substation consisting of two 20/26.7/33,3 MVA transformers, feeder regulation, and ten getaway feeders. Substation equipment arrangement was a traditional outdoor configuration, consisting of main and transfer bus with considerable switching flexibility. All components and control systems utilized modern state-of-the-art technology, allowing the non- traditional implementation of substation monitor/control functions. Performed design, contract document and technical specifications preparation for Owner furnished equipment and Contractor award, site inspection, and startup services for the 115-57 x 12.47/7,2 WA Knights Bridge Substation consisting of a 20/26.7/33.3 MVA transformer, feeder regulation, and five getaway feeders. 16th Avenue Substation Project, Vera Water and Power, SpoItane Valley, WA —Prepared 20-Year Long Range System Planning Study, after which prepared design, contract documents and technical specifications for Owner furnished equipment and Contractor award, field construction inspection, and startup services for the It 5 x 13,8/79 WA 16th Avenue Substation consisting of a 20/26.7/33.3 MVA transformer, regulation, and five getaway feeders. Substation equipment was arranged with flexible switching open -rack outdoor configuration. All components and control systems utilized modern state state-of-the-art technology. The site was arranged so that the substation could be expanded to add a second transformer bank and distribution rack. Columbia Basin Electric Cooperative, Heppner, OR — Prepared 10-Year Long Range System Planning Study, followed by design, contract document and technical specifications for upgrades of CBEC Sniption Switch Station, Condon, Fossil, Sand Hollow and Ruggs substations, consisting of transformer replacement, circuit switches and by- pass configuration construction and protection/metering/control and modular control building upgrades. The project included completed contract document preparation with technical specifications for material procurement and construction, The Condon upgrade included a 10-mile 115 kV steel pole design with interconnection to BPA, City of Ashland Hersey Street Underground Project, Ashland, OR — Following the preparation of a 10-Year Planning Study performed design for approximately 1.5 miles of multiple conduit underground 15 kV feeder circuits from the Mountain Avenue Substation along Hersey Street to N. Main Street, a busy residential and commercial area. The work included underground circuit detail ductbanks and vault designs with contract document preparation consisting of drawings and technical specifications for bidding, Also prepared cost estimates and assisted with Contractor award, PAGE 2 of 2 1 09 ... ...... .. "MU'l A IL f By: Martin Stoddard, President Stoddard Power Systems 0 ' '6 1600 VALLEY RIVER DRIVE, SUITE 380 M EUGENE,OR97401 M PHONE (541)-228-9353 Table of Contents SECTk]Nt Fee Schedule .......... ......................................... ........ ....... ....... ......................... 1 conrpxoroSALFOR ELECTRICAL SYSTEM MASTER PLAN -uvxo ����7�U���� �" ����� SCHEDULE ~~�=°"��"~.~~��� Based onthe discussed Scope ufWork inthe Technical Proposal, *mpropose 8zpedormd)oi0-ymor planning study or electrical master plan development on time and materials not. to exceed a total of $78.15Afor the base project. Since the City obtained Mountain Avenue Substation recently, as an optional item, SPS can provide a two-day of substation training for an adder of $9,800 including training materials. Compensation will be on the basis of actual hours worked and shall not exceed the cost estimate indicated without written authorization from the City, The cost estimate is based on the following tasks: Table 1: Cost Estimate Est, Cost Base Project Total ~ Data Collection • Load Forecast " System Planning Criteria ° Transmission and Substation Evaluation ° Analysis ofthe Existing System ° Major Equipment Inventory Review and Replacement Schedule ° Other Considerations from Renewable Energy Resource Addition, Increased EVCharging Demand, Climate & Energy Action Plan, and Wildfire Mitigation Plan. ° Power Flow Analysis ° Short Circuit Analysis ~ Protective Device Coordination " Prepare Electric System Study Report (OPTIONAL) OnshoSubsta0on Training, including the following $9.800 topics: I * Substation configuration * Transmission interface and primary equipment 0 Power transformer ° Voltage regulator ° Auxiliary system * Monitoring and Protection (Transformer andFaedm) ° Grounding ° Operation and maintenance NOTES: 1)The engineering rate schedule kaenclosed mAppendix Act the |nnxProposal. 2)This base cost estimate covers all tasks listed inthe scope ofwork. 3)Nosub-consultant was considered inthe above cost estimate. COST PROPOSAL FOR ELECTRICAL SYSTEM MASTER PLAN -2ouo 1o// Certificate of Compliance Compliance with Oregon Tax Laws: In compliance with OAR 137-047-0260(2)(e), I hereby attest or affirm -under penalty of perjury: That I am authorized to act on behalf of the proposer in this matter, that I have authority and knowledge regarding the payment of taxes, and that contractor is, to the best of my knowledge, not in violation of any Oregon Tax Laws, as defined in ORS 305.380, Compliance with Nondiscrimination Laws: In compliance with ORS 279A, 110(4), OAR 137-046-0210(2) and OAR 13 7-047-0260(2)(a)(E), I hereby attest or affirm under penalty of perjury that I am authorized to act on behalf of proposer in this matter, and to the best of my knowledge the proposer has not discriminated and will not discriminate, in violation of ORS 279A. 11 0(l), against a minority, women or emerging small business enterprise certified under ORS 200,055 or against a business enterprise that is owned or controlled by or that employs a disabled veteran as defined in ORS 408,225 in obtaining a required subcontract, Corporate Officer: By: Signature Martin Stoddard Print Name Title: President/Principle Engineer Date: 06/23/2023 Page 18 of 25: RFP Electric System Master Plan ° = ___- 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 E Update El Request for Direction 0 Presentation El SUMMARY Before Council is an update 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 construct the new Water Treatment Plant using the Environmental Protection Agency (EPA) VVotor Innovation and Infrastructure Financing Act (WIFIA) funding mechanism. This update also includes background and previous information discussed by Council regarding utility rate affordability and applying a metric to the overall cost of utilities for community members in order to make holistic decisions about rate increases for the enterprise funds that are within the Cuuncil's POLICIES, PLANS & GOALS SUPPORTED VISION STATEMENTS for Success: ^ Ashland isoresilient, sustainable community that maintains the distinctive quality of place for which it is known v We will continue to be unique and caring city that stresses environmental conservation, fosters orbodu expression, and iyopen tonew ideas and innovation * We will plan and direct our efforts to fulfill this Vision for the long term with oconstant view toward being onopen, welcoming community for all with opositive economic future VALUE STATEMENTS for Success that Support the Vision: COMMUNITY w Community affordability, including in available housing and childcare w Belonging through mutual respect and openness, inclusion and equity ° Quality oflife that underpins the Cih/aeconomic vibrancy ° Environmental resilience, including addressing climate change and ecosystem conservation * Regional cooperation, including in support for public safety and homelessness ORGANIZATION w Respect for the citizens weserve, for each other, and for the work wedn ° Excellence ingovernance and city services • Sustainability through creativity, affordability and rightsized service delivery ~ Public safety, including emergency preparedness for climate change risk Page lof0 �~ "IN H� °Quality infrastructure and facilities through timely maintenance and communit investment PREVIOUS COUNCIL ACTION Typicallythe Council approves rote adjustments for the enterprise sYotenna annually with the last rote adjustment approved onJune 4,2O9. June 4,2019 Meet nq Minutes June 4, 2019 Staff Report BACKGROUND Water Utility Fund Proposed Rate Increases The water rate analysis proposes 10% increases for the next few years to account for projected expenses 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 2OlA.The construction cost using Portland indexing has increased 317%fnzrn quarter of2DlSto quarter of 2023, reference figure below. Audited personal expenses have increased 5.7% from 2019 through 2022 as shown in table A-2 of the Water Rate Technical k4urnorondunn and staff expects this to significantly increase moving forward oathe 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 communities 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 au|m of Ashland's water tuTAP partners during the winter when Ashland has onexcess nfwater supplies. Ashland's costs are high now because ofthe infrastructure investments |Liomaking. Page 2oflo N Figure 1: Construction Cost Index Overatt Construction Cost Index 03 2023 (JANUARY 2009 = 100) 2GO - go- ,so- 70- do - 50- 1 40- 12fl "I 03 23GR =0 2C11 2312 2313 14 21s 2316 2017 2018 201P 2020 2321 2022 2023 Q1 2023 Q2 2023 03 National M Portiand ' , 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 1 M $10929 .1" Flat Charges Use Charges $99.35 $100 $90.31 $82.13 $80 $74.67 $60 $40 RE M CMENT Jav-2 i U'T- 2 5 Jul-26 jut-27 hlu-z-a Page 3 of 10 n����� �� Water Treatment Plant Project Funding City staff is still coordinating with PFM the City's Financial Consultant along with the Bond Attorneys from Hoekinctoroviewthopropooed|oonogroornmn1vviththmEnvironrnento|ProtectionAgenoy/EP4\ond develop the Master Declaration required to utilize the EP4'oVV|F|A Funding program for the project. To proceed forward with theVNFIA program for funding of the project, the Council was required bV approve a borrowing resolution, which was done at the September 201h, 2022 Business Meeting: September 20,2022 Meeting Minutes 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 VV|F|4program due tothe 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 io$75,73O]72. The Bond Resolution previously approved by Council did not consider the increase to project costs and also availability offull VV|F4funding for the project. Thus,onmwbondnmo|utionvviUbenaquiredtobe approved by Council as staff moves towards loan closing. Staff expects to bring an updated resolution to Council in January for discussion and approval. WIF&A Process Steps: l.Develop and Approve Water Revenue Bond Resolution /cnnnp|oted,but needs 1oberedone) 2.PoatPub|ioNoticmofVVoterRemenueBondReoo|ution(Cornp|atedbutnaeds1oberedono) 3.Dbtoin Indicative Credit Rating and Preliminary Plan of Finance (completed) 4.Complete VV|F|A Loan application (Cornp|otod) 5.Submit Application toEPA (completed) G.Develop water revenue and rate forecast (Cornplete,) 7Finalize Plan ofFinance and Obtain Final Credit Rating (|n process) 8.NmgotioteFinu|TernnsondCondidonofor0orn)wingvvithEPA/inprocoa6 Q.Close Loan (Anticipated April/May 2U24) |nMay ofthis year, HDHupdated the opinion ofconstruction costs tomatch the 9O%design level the project current is at reference table l ba|mm. Currently the opinion of cost for the construction of the plant ranges from o high of$7O,424,OOO to o low of $55]15,800.Thia opinion ofcost also includes uontingenoy, escalation and market volatility factors. Page 4oflD Table 1: Water Treatment Plant Opinion of Cost Surnmalry of Opinion of Probable Construction Cost Summary of Opinion of Probable Construction Cost High Range BESS Construction Costs �D In an attempt to directly offset project costs staff has applied for Bipartisan infrastructure Low /NA 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 Brooks 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 projected rate increase for the Wastewater fund was developed as part of the financial analysis 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 projectnzte structure through 2O28. Page 5of0 Figure 3: Wastewater Rate Impacts $80 $70.46 $67.75 $70 wlo4 $6484 $5S.53 $60 $5420 $54,2rs $50 $40 $30 $20 $10 $0 I-Jul-22 1-jul-23 I-Jul-24 I-Jut-25 1-Jul-26 1-Jul-27 I-Jul-2 Current Projected Rates Rate 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%. 5e Monthly Storm Draiancle Fee Single Family (per residence) Condominium 'l-9 Units (per unit) Multi -Family 1-9 Units (per unit) Mobile Home and Trailer 1-9 Units (per unit) Other (per 1,000 sq- ft. of impervious surface area) Minimum Charne Residential Accounts Commercial Accounts $499 $499 $5.44 $5.93 $6.34 $6.72 $713 $756 $7.93 $825 214 214 233 254 272 288 306 3-24 3A0 3.54 2.14 2A4 233 2-54 2.72 2.88 306 324 340 354 214 2_14 233 2_54 2-72 2-88 3-06 3-24 3.40 3.54 166 1.66 1.81 1.97 211 224 237 251 264 2,74 $4>99 $4.99 $5-44 $5.93 $6-34 $672 $713 $756 $793 $8.25 4.99 499 544 593 634 6-72 7-13 7-56 7-93 825 Page 6 of 10 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 to be associated with monthly utilities. From Census data the 2021 median income for Ashland is $83,641/onnuoUyur$5,303/rnonLh. 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 inuornetiedtoeochuti|itVinthecurrontcondi1ion.Genero|K\over2%poruti|ityi000nsidered^high^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 2021Median Household |no}rn2 $ 5,303.42 2% of Median Household Income Per Utility Last Update Utilities Monthly Rate % of Median Income Table 4shows the projected ud|kvcVa and overall percentage against the median income level with all of the rate increases currently projected via a rate study or financial analysis completed as part of the master planning process. Page 7o[0 V, q : r r qz 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% J *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 5 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 (MHI) [11 $70,084 $5,840 Ashland MHI [11 $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 MH1 [2) $1,273 $106.07 Source, US Census. Ill 2021 5-year American Community Survey estimate. [21 Per EPA guidelines a typical water bill greater than 2% is high arld a typical water bill greater than 2.5% is burden5ame. 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 a study if directed by Council. Low Income Assistance Program As part of the scope of work for utility rate analysis, HanNbrdEconomic 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 ortry toparticipate inthe program. The main concern iomodifying the income level and age restriction requirements in order to give more access to the programs for community members, |nreview nfthe work Honskonj performed|a|eonmade the following recommendations toboconsidered as well: The current program uses l0D%orl25%nf oethe criteria, but this ioonextremely low income bvOregon cost ofliving and housing. Often times low-income seniors who are interested in the program make just u little too much to qualify for oaaiaLonoe. Medicaid, which is very hard to qualify for, uses l38-l5U%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 Lumove 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 specificrate resolutions for Council approval along with onupdated borrowing resolution for the Water Treatment Plant project. Page 9of0 p 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 POBox 1O384 Phone: 530~412-3676 IN Truckee, CA Email: catherine@hansfordecon.00nn 96162 Technical Memorandum From: Catherine Hansford Date: October 25, 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 (HEQ completed a full cost -of -service study for the City and water rates were updated pursuant to that Study. Since then, the City has made some percentage increases in the rates to account for rising costs, and revision of some major capital improvement plans, most notably for the water treatment plant; however, water rates have not increased since July 1,2O19. HEChas updated the water rates projection per1heCik/sourrentvvatcrfundfinanda| 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 in Attachment A K�^� Major � �^^��s The financial analysis makes the following major findings: 1. The water utility fund is in a strong financial position, but to remain fiscally healthy, rates will need tocontinue tobeincreased due tomajor infrastructurecosts most notably the construction of the new water treatment plant, as well as typical annual inflationary pressures onoperations costs, The analysis projects thatsix1UY6increasesvvi||beneeded, beginning January 2024, followed by five increases each July, beginning July 2024. 2. 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 prjectnnaytakc 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 Ta|ent-Ash|and-PhoenixWater System (TAP) partners and /b\ an American Rescue Plan Act (ARPA) grant. Strong reserves are necessary for cash flow purposes when capital outlay is made ona reimbursement basis. N1ft-A12111 Page 2nf9 October 25,2U23 3. The City should conduct a cost -of -service study to ensure customer groups are paying for their share ofwater service costs, and toensure arate 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 1 on the next page summarizes the projected water rates for the current and next two bienniums (six fiscal yeans\. Figure 1shows the financial impact Loasingle-family home using 1,8OO 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 to be affordable in Ashland 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/$67.89\are lower than they would bebvapplying the I096increase ($73.D9);this shows the City is spending prudently and managing its resources efficiently. Figure Single Family Home Bill for 1,000cubic feet Flat Charges Use Charges $61.71 $60 $40 Zl wha $20 --� ����— �-- IVZN INVI gro 61 $O Prepared by HEC DRAFT Page 3 of 9 October 25, 2023 Table 1 Summary of Rate increases for the next Six Years Rate Component Rates Implementation Current 1/112024 7/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 10.0% 10.0% 10.0% 10.0yo 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 ill 1.5" 2" 31, 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 Commercial & Institutional Irrigation October - May June - September $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 $0.1388 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 $0.0376 $0.0414 $0.0455 $0.0501 $0.0551 $0.0606 $0.0667 $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 $134 $1.47 $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 $1333 $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. [2] 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. [31 For temporary water provided through a bulk meter on a fire hydrant. [41 This rate shall apply to all water taken through fire protection services or fire guards. [5] Due once per year on first TID non -potable water bill. Prepared by HEC DRAFT Page 4of9 October 25,2023 Methodology The water rate analysis presented in this memorandum is not a full cost of service study examining proportionate costs to different customer groups; rather, it projects financial needs over the current and next two bienniums, and how tofund those needs. Water rate revenues are projected under various assumptions including these: Water demand bprojected 1ostaystadcoverthenexttenyears.Abhoumhnevvvvater 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. Operating expenses, which account for annual costs iorun 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 coat 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 ofrevenuorequirennentisbasedonthehistorica|changes of costs by cost category, and for the next two bienniums, ranges between 4.2% and 4.7% each year. p Aside from water rate revenues, the water fund receives non -potable water revenues from customers using the Talent Irrigation Ditch (T|D), 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 as conservative estimates of future revenues. Historical revenues are presented inTable 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 to rehabilitate major infrastructure components, and/or install new or replacement facilities. Table A-4 presents the Cit«'s Capital Improvements Plan /[|P\for water for current and next two bienniums. The [it's estimated costs were increasedforinf|ationannua||yoverthenextfiveyears,aparLfrornthevvatertreatnoent plant estimated coats as the engineering estimates for that project already include inflation inthe project custestirnatos. Prepared by HEC DRAFT Page 5uf9 October 25,2O23 The City's financial advisor has provided a funding strategy for the new water treatment plant total estimated cost of$7O 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 debt service is shown inTable A - The water rate analysis assumes additional City debt funding to complete the CIP within the six -year period. Table A-6 shows the financing costs and estimated annual debt service assumptions to raise bond proceeds of $6.7 million to fund dam safety improvements. The projectedrevenuerequirenoentfVreachyearindlehoreoarLispresentedinTab|eA-7. The revenue requirement is estimated to increase from approximately $12.0 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 to TID customers are assumed to increase at the 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 mfthis analysis. T|Drevenue projections areprovidedinTab|eA,Q. It is preferable toadopt a smooth rate schedule that does not increase and decrease each year to exactly 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 lO% increases beginning July 2024. Table Ar9 presents the estimated cash flow for the water fund through fiscal year ending 2029, 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|HA|oan,theCitycou|destab|ishaRate Stabilization Fund ifitchooses todoso. Excluded from the cash flow analysis are loan funds and bond proceeds received by the City, and project oostsfunded6vthose|oansandbondproceeds.Theana|ysisexc|udesthese becauseofthe unknown timing ofthe projects' expendiLuresandrevenues.Debtservioefor these projects is included in the cash flow analysis. As a result, actual cash balances may be significantly greater or lesser from one year to the next than shown in the table. Prepared byHEC DRAFT Page Gof9 October 25,2OZ3 Results Revenue generated by water rates must be sufficient to cover all operating expenses each year and debt service coverage and raise sufficient revenue tofund capital projects thatarenotdebt-financed or covered by existing reserves. Figure 2 shows the current level of water sales revenues, projected revenue requirement, and projected vvotersa|esundertheco|cu|atedpercentageincreasesinvvater 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. Figure Revenue Requirement and Projected Water Sales �0��Projected Water Sales Revenue Requirement ~-N—CurrentRates Revenue $4 _ $2 Historical and projected annua|nndinKcashba|ancesareshovvninFieune3.Thecashbo|onceis projected to have peaked in fiscal year ending 2023 as reserves were being increased to fund upcoming known capital project costs.TheCityvviUuseacnnnbinationofgranLs,|oans,ratesrevenue and cash reserves to pay for capital improvement costs over the next six years. Figure 4shows the projected to1a|coshba|anceofthev/aLerfundUhrough0soa|year2O29,andthe target minimum cash balance. The target minimum cash balance is equivalent to 20% of revenues plus one year ofdebt service (excluding City General Obligation bonds and the VV|F|A loan, which are not secured bybond reserves).This amount enables the City tnrespond toernergenoyexpenses, 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 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 $8,000,000 $6,000,000 $4,000,00 0 im R ;2,000,000xt $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 I-r Estimated Cash Balance --O—Target Minimum Balance $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 d,) nnn r)nr) I I (, r) N FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Prepared by HEC DRAFT Page 8of9 Impact cmResidential Customers The EPA considers a water bill under 2.0% of median household income to be affordable. Currently, the water bill is $61.71 (about 1.16% of area median household income). With the first rate increase ofIU96inJanuary 2O2/,the bill for I,0DOcubic feet ofwater would be$G7.89,or1.Z8Y6mfmedian household income, ayshown inTable 2below, keeping the water bill within what isconsidered the threshold range of affordability in the industry. Table 2 Annual January 2O24Water Bill 3/4"using I,000cu. Ft. $QlS $67.89 Water Bill as96ofAshland K8H| 1.28% Water Rates @ 2.096ofMH| [2] $1,373 $106D7 Source: US Census. CD2021S-yearAmerican Community Survey estimate, [Z]Per EPA guidelines atypical water bill greater than 2%ishigh and atypical water bill greater thanZ.SY6isburdensome. 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 USCensus data and adjusts each year todetermine the current median household income. The estimate of median household income used in this analysis is the 2021 S-yearACSfigure for Ashland. Table 2 also shows that monthly water bills would need to be greater than $1O5.O7per month for the EPA toconsider the bill unoffordab|e. 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. Table Comparison Water Bills for a Typical Residence in Oregon Water Purveyor Base Charge asY6ofBill Base Charges Use Charges Monthly Bill for 2DHCF 314''Meter Klamath Falls 13% $3.56 $23.80 $27.36 Central Point 5796 $17.37 $13.06 $30.43 Medford 68% $21.92 $10.21 $32.13 Corvallis 4196 $18.47 $26.46 $44.93 Phoenix 88% $40.61 $5.36 $45.97 Eagle Point 39% $18.11 $28.80 $46.11 Bend 5596 $25.99 $21.60 $47.69 Talent 4696 $22.11 $25.75 $47.86 Springfield 4896 $23.10 $25.26 $48.36 Grants Pass 77% $37.62 $1I.25 $48.87 Tualatin 2296 $11.00 $39.00 $50.80 Roseburg 58% $30.31 421.60 $51.91 Ashland (current) 4796 $28.95 $I2.76 $61.71 Albany 35% $23.01 $43.10 $56.11 Ashland Uan.2O24\ 47% $31.84 $36.85 $67.89 Tualatin Valley VVD 14% $11.71 $70.30 $82.01 Source: Rate schedule for each water purveyor, July 2023. compare Page 9of9 October ZS,2U23 Prepared byHE[ 2023 FINANCIAL ANALYSIS 5 ak 41 a) > 0 Ln Ln Ln (D 0 (14 d1 h r-i 0 w �o Lf) 0 cn r-i Ln �zt 5; C) 0 > 0 y. (U (1) r, m Q. 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C) o W `� VI E O CJ L v ,at6, i_+ N '~ O C > v rFa+ QJ N d ice+ > QJ �J' iU rA i 0 v 70 � r-+ O O CO i to O v %- v N O x cr OJ V z LAJ7 W 4a C •C 75;in '—' '� CL u ++ L u C ++ a u i Lr) to (uo �G' LL.I = W' Z Ln �-+ U m LA 0 0 LO cl: u O ►- t- M ° L) w v v rz Table A-4 City of Ashland Water Rate Study Water Capital Improvement Plan - Inflated Dollars DRAFT 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 $0 $0 $0 East & West Fork Transmission Line Rehabilitation Cash $2,300,000 $0 $D $0 $0 $0 7.0 MGD Water Treatment Plant Debt Package' $4,000,000 $40,000,000 $26,424,000 $0 $0 $D 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 Hilview 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 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 $653,000 $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. cip irfl [1] Potential cost -share with TAP Partners, unknown at this time. [21 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 Model Oct2023 V2 10/25/2023 Table A-5 City of Ashland Water Rate Study Existing and Projected Debt 'T1aI Existing Debt FY 2024 Budgeted FY 2025 2 FY 2026 3 FY 2027 4 FY 2028 5 FY 2029 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 514005 $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 [11 WIFIA $70 million loan. Prepared by HEC 1210340 Water Model ©ct2023 V2 10/25/2023 Table A-6 City of Ashland Water Rate Study 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 3 516 $99,390 $102,870 $0 $0 $0 $0 Underwriter's Discount 1% $33,130 $34,290 $0 $0 $0 $D 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: HEC 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 Dct2023 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 $92,18S $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 MAMI FY 2024 Costs Assumption Budgeted [1] FY 2025 2 FY 2026 3 FY 2027 FY 2028 FY 2029 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 Metered 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 Total 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 (tithia 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 10J2Sj2023 ati N O N � r~ LL F LL 0 N ® O N L n LL LL N N t]0 � O N G LL uj L fu CG u N LL o N m >- LL Ln N O N N LL Cr N O � N � as LL-0 m a L% 4� a � L0 w v a) 4.1 � LL 1 C a (Tl y Q � Ln of Q 4a Q ty Q .o > ZLL �+ t� u d w uj m LNn tD rl o m On I* 00 m m Ln LO r O CO M Ln tii 00 O0 00 m N 000 LN LAG O r-i ri Lt') V)- N Vl- ct Ln Ln 00 00 CO O Ln N ri -i tJ} ri 4.n 00 Lr) 00 N d' 0 M m LLnn M Oa1 rN 00 M �r �t m N rn m LO r; to O c tJ Ct m O 'T LG O r, ri tV O N 00 00 Q1 m rn rn a w Ln N 03 m M d` a w c4 00 `HL o Lr O :: 00 N � N O N th 'tJ} r, N m r` ct ct N 14 r-L ih A4 tD N LD m O en O m h r1lNC m C r� N Ct h N ri Ln r-. oa c-I ri r• O 61 rl Ln Ln o r OH O CDLAG LLnn O N 0000 r-I th rI P. �F Lyj -Jh c-I th ri L} tJ)• In tn. rH 00 O m ko M N rq I. m 0 M Pw m hi rH O O N to O aN 00 rl d n O' V)- COG O N ll m M 01 ri et ri c-1 {!} ri in• tJ)• 4A. in. C6 -1 � O� m O M 00 �i Ln Rt d w Ln Ln O ri ty o0 C1 61i O e-1 t31 000 O m1 CS ()IVi N N M GO1 000 O 00 Q1 1l. r-I Q1' ri th •{h {n. VIW iJ} as U to a+ cl QL to iS1 H a- Q � a � O t) V LLI U to Qj m (U In Ln a7 O Z 0 p Z m o o o m m Ln cQ O O Ct 00 Q0 I-io � o o nr. m r- -i -i O P� 00 t•I M {n- h M Ln L% tJ> th if)- Ln m co m ca o - y O o cn r. rn .q rn to O Q, o Ln m r- LD N u a Or-L o m � m th IH rf) o i C)_ rH tJ� m Ln n tOr>, • N Ln m o o Zs n� `a o o Ln m o Ln in N N dr' O Z5 u O O 1* ri N LLnn o IH M iJ)- •O •(J) CL O Ln O O Ln O l.d I� O O M N LD LI'1 O q,t O o N N r 1 0000 th Lmn u O rH V). LLnn o th •V} � II t-I Q1 O v O 0 e-i m r-i Lr) � a w o N Ln r• m M N O m O O tG r-i St ri N r-i 4L 'U)- M N 'TZ t•-i t/S U W h 00 N O M r1 m O N o O o N O L r) a Ln L`Lnn c j t!} t/} {J} r-i 4^ {n. tn 41 c Lll E > tG O O- U E m V Ln m u CC Q U O O C: G ra LU -0 d > E co C) -0 ar ca w m C O u C N LL . bn C CC 6 G OD a Ln m Z U m Q ui f� 3i 0 ra v Lu C a m POBox 1O]84 Phone: 530~1 2-3676 N, L/ Truckee, CA Email: cathuhne@Vhansfordecon.com �Y­ cd, N P�I� C������0N�������_�� 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 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 (SMI) can receive a credit of 50% 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|ioy2O17.U8.O1 The Senior and Disabled Year -Round Discount Program. This program currently applies to all 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 2096 or3OY6 discount indefinitely; note however, that if the qualifying person moves out of the residence, the discount is removed. Proof of eligibility 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 ofupto$1O0inocalendar year may also begranted toautility 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- RoundDiscountPrograrn,speoifica||yforthevvaterandvvastevvateruti|ities. 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 Zof4 January 16,2O23 HEC conducted a survey of comparison low-income household utilities bill assistance programs, Exhibit Asummarizes the programs ofsurveyed cities. Some cities only apply the discount towater ursewer or both water and sewer, some also provide the discount tostornnvvater, 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 15,000 and 40,000) that have low-income assistance programs for water and wastewater utilities dwnot restrict their program toSeniors. Ofthe 9comparably-sized c|ties,7donothaveanage or other qualifying condition (Hermiston, Sherwood, Milwaukie, Newberg, West Linn, and Redmond). Troutdale requires the low-income household to have a Senior ora Disabled person living inthe 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 sturrnvvaterservices). Ofthe 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 62years 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 exdusive). Amount ofAssistance 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 as Ashland does; however, some restrict the percentage discount to the base charges only or waive the base Prepared by HEC DRAFT Page 3uf4 January 16,2823 Emergency Bill Assistance. Ashland offers a one-time $100 credit per year per account, subject to funds availability. Similar toAshland's Emergency Credit program, Mi|vvauNe also provides temporary assistance with limited funds, but no other city ofsimilar size provides emergency water and wastewater utility bill assistance. Milwaukie offers a maximum of $400 every 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 of the program to Seniors only and expanding the program to all low- income households with percentage of assistance provided on a sliding scale with household income levels. If changed in this way, the need to prove being elderly or disabled is removed. m 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). * Reducing the Seniors eligibility criteria from 6S to 60 or 62. 0 Keeping the one-time Emergency Assistance program as it is. It is recommended that the City repeal Resolution 92-2and 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 instrikeout 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 12years. DRAFT Page 4of4 January l6,2OZ3 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 6S years of age or disabled and 60ycao 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. 9. C. The senior citizen discount shall only apply to the applicant's residence. C. D. Asenior 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. In special hardship cases, a committee of two (2) City Council members and the Senior Program Director may recommend that the City Manager grant exemptions to the foregoing income limitations where the circumstances justify such exemptions. (Ord. 3I92§I07, l4J]4.D30Water rate schedules The water rate schedules and senieF diseeuRt rate utilities bill assistance discounts shall beestablished 14.08.035 Sewer User Charges The sewer Rate Schedules and 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 byHEC 0 CL > E M p IC M E >� U0 4 0 uj 2 cu aMD a) 0 to 6 cu 27 0 E 0 C) Ln -C 0 C, u o cu o Ln v o E V = Ln w t u Q0 2 cuN a-' _I_- 0 — ❑ CU Ln y6 u Ul E — > cu E w E E u .0 0 u r 0 C: U U O a -a 0 0 -a u 0- CL S m m E m u 00 O O 'i Ln cu If, c o '61 E 0 v 0 E o 0 29 4 a) u m a) u 0 .0 cu cu E >- Eq — ru Ci u (D a) Cu 0 _0 0 N 0 Lr) -0 0 0 -:F 4-; -0 E '0 m 0 E E ta -E c am E m 0 O -0 u cu (u 2 a a) > E lu u m u 80-E�M�P-8(u 0 E 0 aj ..-j c 0 ij-, m LL 3 E u > aaLo a) E U c 0 VI VI < E b4 E —0 0 0 -j Rwo- 0 P E o 2 u > c: cc: CE), E >0 2, 16 oc (u LL 0 u u M 0 W .Z; 0 c) cu (U q E cL C LU 2 o 0 O m w r-j w CA -0 bb --1 0- E c 0+ CL y > L+n UW UW- 10 0 aE CL w _a to M u m E E uj C: E > Q) E 0 o o lu U C: Q) E Fu - 0 (U aW E 0 s, E E 0 0 a) U O 0 R) U o u L Lu E L to u >-0 bD 0 cu 0 -a in M Ln EN :E erl M E 0 O CL O a 0 CL u 0) a E 0 'D CL) O U') 0 0 Ln ('4 aj cu E M 0 to 2 0 (U r E u Ln O 0 cu C) 'o ,2 u a c CL m (D V� N c: -1 o -0 a) TS w u C: > a) >. :"2 -E o as CL M CL ai m >1 Ln E O -30 -0 a a tD 0 Ln E N Mm M&I o E 0 Ln -0 C: m 0 E 0- IOU) LL LL u 0 Q Ln Z3 >. Y 6 = cu m r, .0 Ln K. LM O V) 0 cl) u z (1) cu S U c -C 0 - _0 NN E I-- to u =1 0 .N ISY 0 cr- n- o E U C: cc CL C co E m C: <N V 0) Ln .C: 6 N , = , -0 co E 0 > 0 o w w V) E ?: -N -o O W Ln V) u m 0 0 C, E Z, E u or 0 o , E E 00 2 V� U Ln a) 0 > u V) C: V, O cu 0 >m a) 7; -0 -a 211 U= 0 0 0 U 21 E _0 C cc Q. OJ 0 -6 Oi cu CL M M E m bt 0 , cu CL cu a m E 0 u 0 Lu Z::. E . —0 m z 0 0 Ln 00 QC) E -a o E N a L a) w E > 0 ra 0 W -ro > — E a) 0 E M cu < u CD 0 0 u 0 0 > CL (U > Ln cu m w 0 0 0 U Z5 E E > O m E �! o d. E v 0 0 u CL —0 'E U C 0C m E o m w 0 o .-I W -a u 0 1-4 0 LD a F= 0 E u 0 U u Oa co E —.E cu 42 0 -0 Al- a) E 0 v (D E m -r cu :F > t>D CD o E 8z > E ou E o 2 E u wz O 0 u M 0 O- .E m OJ V) -f- E 00 4 0 W0 E bD m E -2 u -C m u bz 0 -0 CD Ln i/)- 0 O D 0 *'r_ E 0 U o E cu ED E co 2 < CL _0 > 0 E U 0 cw u 2 t 'c' bz E to 2 w CL a Lt c>u. u) O rw w E E 0 0 u u cu: m bD 0 A2 w 2 -i 3 E 6- O (U M—d M 4 < Ln 0) E m -9 � � a Cost ofServices Study March 15, 2o16 NEC Project #140136 I 1. Introduction I 1.1 Purpose of the Study 1 1.2 Methodology 2 1.3 Organization of the Report 2 2. Summary of Findings 4 2.1 Major Findings 4 2.2 Key Assumptions 6 2.3 Calculated Rates 7 2.4 Rate Impacts 10 3- Current Conditions 11 11 City Water System 11 3.2 Customer Base 14 3.3 The Water Fund is 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 5. Cost of Service 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 of New Rate Structure 6.1 Bill Impacts 6.2 Affordability Test 6.3 Comparison of Water Rates 44 44 44 45 City of Ashland Water Rates Cost of Service Study March IS, 2oi6 Page i 1 Calculated Water Rates through 2022 8 2 Calculated Typical Home Bill for Z,000 Cubic Feet g 3 Historical Potable Water Production 11 4 Historical Water Consumption 13 S City Population Growth 14 6 Current Water Rates 17 7 Water System Development Charges 18 8 Forest Resiliency Program Fee Schedule 19 9 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 Affordability Test 4S 29 Calculated Typical Home Bill for 1,000 Cubic Feet 46 City of Ashland Water Rates Cost of Service Study March is, 2o16 Page ii 1 z 3 4 5 6 7 8 D 10 11 12 13 14 Cost ofService Redistribution ofFYzoz5-16Revenue Requirement Typical Monthly Bill for3/4'Single Family Home Annual Water Consumption b«Month Water Use byCustomer Type Typical Annual Sources ofWater 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 0fSingle Family Monthly Water Bill 4 q zz 15 z6 16 19 B 35 36 36 41 43 46 City of Ashland Water Rates Cost of Service Study March 15, 2o:L6 Page Hi Section 3.: INTRODUCTION The City of Ashland (City) contracted with Hansford Economic Consulting (HEQ 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 a clean, 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 customertypes 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 andtheneedtonaisevvaterratestop|an for those project costs.TheCityraiaedvvaternaLes]u|y2Ol3,2O14`and2O15by1O%eochyear asaresult ofthe findings ofthe Water Master Plan. Since the 2012 completion of the Water Master Plan the region has experienced a drought. 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) projecttoaugrnentvvatersupp|ies.Therecentvvaternateincreosesvxerebased 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 topay for projects identiUedintheMasterMan,asvve||asother projects identified since completion of the 2012 Master Plan. City of Ashland Water Rates Cost of Service Study March is, 2oi.6 Page i Given decreased water demand in recent years the City also anticipated that water rates would have 10increase through fiscal year 2O22ornecessary capital projects /nnostpar1icu|adyanevv water treatment plant) would have tobepostponed. 1.2 METHODOLOGY This report was prepared using the principles established bvthe American Water Works Association l.The 8VVVVA"Principles ofWater Rates, Fees, and Charges: Manual of Water Supply Practices MV (the "M1 Manual") establishes commonly accepted professional standandsforcostofsen/icestudies.TheMIManua|genena|phndp|esofratestructunedesi8n and the objectives ofthe Study are described below. According to the M1 Manual, the first step in the ratemaking analysis is to determine 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 offactors may affect these projections, indudingthmnurnberofcustonnorsserved, vvaLerusetrends, 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 upublic ageno/aapproved 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 fun cti on, 1heraieoLudyaUocatesthmse"functiona|izodoosts"tothevahouscustornerdasses(e.g, single-family residential, multi -family residential and commercial) bydetermining 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 isthe 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. The Study is presented in six sections. Following this introduction, Section 2provides asummary ofmajor assunnodonsandfindingsof the study. Section 3 provides information on the Cit/swater system including historical water production and consumption, customer base, historical City growth, and health of the water enterprise fund. Section 4projects revenueneeds,"therevenuerequirernent",throughfisca| year 28l1-22,calculates costs associated with City Talent Irrigation District (T|O)non-potable water service, and determines a meter replacement program and its associated costs. City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page 2 Section 5 presents the cost of service analysis, water demand projections, and details of the calculated water rates. The impacts ofthe new water rate structure are presented in Section G, including acomparison ofbills with other Oregon water providers. Appendix A includes support tables for the water rates analysis. City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page 3 2.1 MAJOR FINDINGS Cost of Service. The cost of service an a lysisfindsth at commerci a I, in stituti on a I, and no n- potable metered irrigation customers are currently payingrnonzthantheirproportiona|shane ofwater system costs. Potable irrigation and non -potable unnnetenad irrigation customers are paying less than their proportional share of water system costs. This is illustrated in Figure I below. Customer types with negative revenue requirement in the illustration should be paying less asacustomer group than they are currently paying. Custonnertypesvvithpositiverevenue requirement should bepaying rnoreasacustonnergnoupthantheyarecurrent|ypaying. Although residential shows an underpayment of $42,111, this is a very minimal difference, as it is only 1% of the current cost (see Table 25). As a result of the cost of service analysis (see Section 5\the rates from fiscal year 2OI6-17onwards shift costs between custornerLypes. Figure 1 Cost of Service Redistribution of Fiscal Year 2015-16 Revenue Requirement Non -Potable Metered, �IN Non -Potable Unmetemd, $5,/35 ` / Potable Irrigation, IN Fire Guards, $6,274 $99,755 |nsitutional, ($5,352) 1 � Commercial, ($113,535) Residential, $42111 ! ($150,000) ($100,000) ($50,000) $o $50,000 $100,000 $180,000 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, 2o3.6 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. m Flat Charges (All Customers). Currently bi I Is comprise one flat ch a rge—the monthly service ch a rge. Under the new rate structure bi I Is 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 of the water system and provision of customer 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 a given period. The service charge would continue to apply to each meter at the property, Service Charge MeterRatios Change. The service charge meter ratios were adjusted to A\NVVA meter ratios established using safe nnaxinnurn 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 sizesvvou|dpaynnorepernnonththanunderthecurrentnneterratins.For1''rneterservices the meter ratio was set equal to a Y4" meter to ensure that households required to upsize for fire code requirements are not penalized (this methodology was also used to establish the Forest Resiliency Program Fee inMay, 2O15 and isbeing used with greater frequency in cities in other Western U.S. states)'. 0 Commercial Customers. Commercial customers are separated into commercial, institutional, and potable water irrigation customers. Institutional customers include the current govern ment/municipa I 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 tofit 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 onthe 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 iS, 2o16 Page 5 TIER 1 TIER 2 Cubic Feet 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 2016 there may be a 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 ratherthan 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 z irrigation customers. Implementation. The new rate structure is assumed to be in effect beginning July 1, 2016 and to be increased each July 1 thereafter. The rate increases would coincide with the fiscal year as is current practice. Water C|PProjects 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 beused for projects thotarene|atedLonevvgrowthintheCiLy. Developer contributions maybe required for certain facilities. |tisassumed 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. |fDVVSRFmoney 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 1S, 2o16 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 so that funds are accumulated and available for replacement of assets on a timely 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 pipel in e was recently comp I eted, This treated water source will be utilized by the City in late summer orearly 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 to7Scents per 1,O8Ogallons in2O16and at3.S96per year each year thereafter. 2,3 CALCULATED RATES The Study provides abasis for adoption ofnew rates beginning Ju|y1,Z016.8vnnodifyingthe rate structure the City will generate sufficient revenue to continue to meet its bond covenants, build a 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 3 years 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 ina billing cycle. Atypical residential bill would increase from $51.72to$54.35July 3, 2816. City of Ashland Water Rates Cost of Service Study March 15, 7o16 Page 7 Table 1 Calculated Water Rates through 2022 Rate Component 7/1/2015 7/1/2016 Rates Implementation 7/1/2017 7/112018 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 1" $46.99 $14.34 $14.88 $15.31 $15.75 $16.19 $16.66 1.51, $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 $11736 $121.16 31, $184.50 $209.08 $217.12 $223.30 $229.69 $236.13 $242.95 4" $282.07 $331.60 $344.32 $354.13 $364.29 $374.52 $385.35 6" $528.92 $652.47 $677.56 $696.84 $716.81 $736.90 $758A8 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 $0.0271 $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 * 2,500 cf (2,501 - 3,600 cf June 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. ma. 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 $0.0358 > 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 %0348 $0.0358 > 15,000 cf 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. $0.0331 $0.0345 $0.0356 $0.0367 $0.0378 $0.0390 June to September n.a. $0.0449 $0.0469 $0.0483 $0.0498 $0.0513 $0,0530 Bulk Water [3] same as non-res. $0,0338 $0,0351 $0.0362 $0.0372 $0.0383 $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 $2150 $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. n.a. n.a. n.a. n.a. Meter Replacement Fee [5] none per meter as above Water Consumption per c.f. $0.0055 $0.0022 %0023 %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 servicetakes 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 tothe domestic water use. [3] For temporary water provided through a bulk meter on a fire hydrant. [4] This rateshall applyto all watertaken through fire protection services or fireguards. [5] Due once per year on fjrstTID non -potable water bill. City of Ashland Water Rates Cost of Service Study March 15, 2oi6 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% � �'Ei Figure 2 shows the calculated bill for a single family home with a Y4" 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 V Single Family Home $68 ag Cost of Service Study izi Master Plan Projection <r't; -) ,,, r'r' - $63.60 $64 $61.78 EFPC $62 $61.4 $59.87 $59. $60 $58.17 $ 5 8. ii $58 $ 5 6 4 $56.0, $56 $ 5 4. 3 5 $54 pgj` $5196 1 $52 $572 2016 2017 2018 2019 2020 2021 Em City of Ashland Water Rates Cost of Service Study March -is, 201.6 Page 9 2-4 RATEIMPACTS Residential. In 2016 reside nti a I 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 G). Commercial. Many commercial water bills would decrease under the new rate structure in 2016. The reduction in bills is also due to the reallocation of costs under the cost of service analysis. Commercial customers with 2" and larger meters would pay larger portion of their bill as a flat monthly charge due to the change in service charge meter ratios to AWWA safe maximum operating capacities for meters. Larger water meter commercial customers would have higher bills in2O16. Institutional. Institutional customers would experience a slight increase in bills in the winter months and a decrease in bills in the summer months. Institutional customers have a relatively flat demand throughout the year, with a slight peak in the spring months before the irrigation season begins, sothechangetoaunifornnusocharge/thesarnerateper1,O0Oga||onsis charged regardless oftotal water use) is appropriate. Potable Irrigation, During the peak summer months potable irrigation bills would increase in 2016 due to 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 (October through April) water bills would increase if no water was taken. This reflects billing the flat monthly charges regardless of whether water is usedornnt.ForaccountsusingvvaterduringtheoM-paakirhCadonbi||avvou|ddecrease.The off-peak potable irrigation water rate encourages planting in spring and fall months when water supply isnot aconcern. TlD Non -Potable Water Irrigation. The unnnetnned customers' rate would increase from $170.01 per acre to $183.11 per acre July 1, 2016 as a result of cost redistribution. The TID 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, 2oi6 Page io 3.1 CITY WATER SYSTEM The City operates a surface water supply system. The main water supply is from Ashland 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 re servo irs (water tanks) located 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 or early fall as needed to augment supplies. In addition to these two sources of treated water the City also obtains water from the Tolent Irrigation District (T|U).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. Potable water production averages 46million gallons per month during the winter months (December through March). Peak month production is July or August when production averages 152 million gallons per month. The highest month production in the past 6years was 180 million gallons inJuly Z0D9. Table 3shows historical potable water production. Table Historical Potable Water Production Month [WendarYear Avg. Annual Percent Year 2009 2010 2011 2012 2013 2014 Water Delivery ofDelivery (MG) by Month Figures in Millions ofGallons January 51.06 48.16 48.88 48.07 42.97 42.38 46.92 s% February 44.48 41.77 44.11 44.96 36.98 37.36 41.61 4% March 48.71 47.54 47.18 47.65 42.45 41.71 45.87 5% April 64.90 48.40 48,70 53.24 5476 56,41 54.40 S% May 105.7/ 5931 60.78 90.64 90.46 97.70 84.11 D% June 124.39 88.51 88.77 109.75 117.26 119.26 I07.99 II% July 180.38 157.48 I35.27 133.40 170.48 137.17 152.36 15% August 167.64 158.29 152.00 148.87 1S5.29 131.38 152.41 15% September 11602 I14.52 131.36 124.35 11430 104.15 117.45 12% October 69.73 86,43 82.60 81.33 99.24 83.61 83.88 8% November 48.97 S1.89 54.13 45.01 81.63 55.40 36.17 6% December 51.26 47.26 49.63 48.50 52.97 51.01 48.77 5% Total 1,073.32 948.57 943.42 968.78 1,058.79 957.53 x 991.90 100% Base Monthly Flow (Dec Mar) Average Annual Base Flow Average Annual Additional Flow Source: City wAsh and. o 45.79 C=8*13 64953 55% 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 55% of annual production. Additional flow to meet demands that pick up during the spring, summer, and fall months comprises 4S96ofannual production. Historical water consumption is shown in Table 4. Due to billing cycles, consumption by month in the table reflects the amount of water billed each month which is not exactly the same as total water used in each month; however, the pattern of use isvery similar with peak month usage typically in July or August. Figure 3 shows the seasonal pattern of water consumption. Figure Annual Water Consumption by Month 18,000000 ' 16,000,000 ------ --- - '- ---- 14,000,000 - -- 12,000,000 ---�— '--- --' — ----- � �L 14000,000 -� 8,000,000 ------ - '- uZi 6,000,000 FIN' -' - -- -- - - �oOO�OO --- -- - - -- Z,0OO,0DQ " _ Table 4 compares 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 water syste s 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 asthis 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 tnreduce their water use. ' "Most states have regulatory policies that set acceptable losses from public water system distribution systems at a maximum of between 10 and 15 percent of the water produced by the public water system.", page vii of 'Control and Mitigation ofDrinking Water Losses in Distribution Systems', EPA NovemberZO10 publication. City of Ashland Water Rates Cost of Service Study March -15, 2o16 Page 12 Table 4 Historical Water Consumption Calendar Year Month 2010 2011 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°% 5.2% 4.5% Source: City of Ash land. [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, 2oi.6 Page z3 Table 5 City Population Growth Water Certified Production Population Annual Annua|Y6 Gallons per Year Estimate Change Change Capita per Day 1-Jul 2000 19,60 2001 19,70 160 0.8% 2002 20,130 360 1.8% 2003 20,430 300 I.596 2004 20,590 160 0.8Y6 2005 20,880 290 1.4% 160 2006 21,430 550 2.6% 161 2007 21,630 200 0.9S6 154 2008 21,485 -145 -0.7% 153 2009 21,585 20 0.1Y6 137 2010 20,095 1,410 6.69& 129 20I1 20,255 I60 0.8% 128 2012 20,325 70 0.396 131 2013 70,295 -30 0.196 143 2014 20,348 45 0.296 129 Change 730 52 Average Annual Population |ncreex 0'2696 Source: Portland State University Population Research ccntrr www4dx.edu/poandcam||v2D1zOtYofAsh|andComp,ehensiveVVa,ermasterPlan. 3.2 CUSTOMER BASE Asshown inTable 5,the City services apopulation ofapproximately 2O,3OOand ithas sustained an annual average population increase of 0.26% since 2000. City water customers include residential (single family and multi -family), commercial, institutional (govern noent/munidpa|\, potable irrigation and non -potable irrigation (TID) customers. Figure 4 shows water use by As the pie chart shows, the majority of City water use (69%) is by residential customers. City of Ashland Water Rates Cost of Service Study March is, 2o16 Page 3.4 Figure Water Use by Customer Type ic Single R3rnU« Residential m Multi -Family Residential �.A Commercial Government & Municipal 3.3 THE WATER FUND The water enterprise fund accountsforthe revenues and expenses associated with operating the water systern.4 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 feest 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. 4 An enterprise fund is a fund that is intended to recover its costs through user fees and charges. Enterprise 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 City'sgeneral fund debt capacity. City of Ashland Water Rates Cost of Service Study March iS, 2o:L6 Pagels Figure 5 Typical Annual Sources of Water Fund Revenue m Water Sales SDC Revenue New Service Installation 11Intergovernmental, Interest & Miscell K Figure 6 Water Sales by Customer Type Government & Municipal ® Single Family Residential I Multi -Family Residential Rate revenue is generated according to the current water rate schedule shown in Table 6. Customers are billed fixed service charges according to their water meter size plus use charges. City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page 16 Table 6 Current Water Rates Rate Component Rate Schedule 7j1J2015 Monthly Service Charge Within City Limits Meter Size 3f 4" $23.50 1" $46.99 1.5" $66.99 2" $88.24 3" $184.50 4" $282.07 6" $528.92 8" $881.49 Usage Charges Residential [1] October- May 0to 300 cf per month per unit $0.0243 301 to 1,000 cf per month per unit $0.0299 1,001 to 2,500 cf per month per unit $0.0400 > 2,500 cf per month per unit $0.0517 June - September 0to 300 cf per month per unit $0.0243 301to1,000cf permonth per unit $0.0299 1,001 to 2,500 cf per month per unit $0.0400 2,501 to 3,600 cf per month per unit $0.0517 > 3,600 cf per month per unit $0.0673 Non -Residential [1] 0-50,000 cf per month $0.0343 > 50,000 cf per month $0.0353 TID Irrigation Rates Unmetered Service peracre or portion of $170.01 Metered Service Base Service Charge per meteras above Water Consumption per cf $0.0055 Bulk Water Rate For water provided on a temporary basis through a bulk meter on a fire hydrant Deposit $1,859.28 Basic Fee $234.77 Cost of Water same as non-residential Fire Protection Service This rate shall apply to all fire protection services or fire guards. The basic service charge will be equal to the minimum basic service charge. Water will be billed at non-residential rates. Outside City Limits All rates and charges forwater service provided outside the city limits will be 1.5times the rates forwater service provided within the city limits. Source: City of Ashland. [11 Irrigation customers only billed when the service takes water City of Ashland Water Rates Cost of Service Study March 3.5, 2o16 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 SD[fee schedule isshown inTable 7. SDC charges are not updated as part ofthis Study. Table Water System Development Charges Applicant Charges Reimbursement Improvement Total Residential All, per Sq. Ft. Habitable Area $0.9318 $1.6751 $2.6069 Commercial QkIndustrial MeterSio* 3/4" $1,792.89 $308422 $4877.11 � $2,988.75 '5,140.43 '8,129.0 1'5" $5975.70 $10,28O87 $16,256.57 2" $9,561.48 $16,448.58 $26,010.06 3" $20,9I7.65 $35,983.04 $56i900.69 4" $35,857.80 $61,685.21 $87,54I01 R' $74,704.35 $128,508.83 $203,213.18 8" $107,573.40 $185,053.61 $292,627.01 Source: uvnomic&Financial Aoa|vsio'Junc5, 2014 Water customers are also ch a rged a fixed monthly fee by water meter size for the 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 year 2015-16. It is now part of public safety. The Forest Resiliency Program fee schedule is shown in Table 8 on the 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 in the Personnel (includes b --"��r---`-- Supplies - `�-'- �Repair ��/^�_�_ ���,' �/ Communications Contractual Services _���`� | Central Service MiscellaneousCharges^' ' , `/ �� T ' Ot�e[Punchosed5eyvices Conservation Programs City of Ashland Water Rates Cost of Service Study March 3.5, 2oi6 Page 3.8 Table Forest Resiliency Program Fee Schedule Meter Size Monthly Charge �� $1.39 1" $1.39 ]� $11.12 3" $22.24 4'' $34.75 6" $69.50 Source: Resolution oo1S-z4adding asurcharge towater meters forthe purpose ofgenerating and dedicating general fund resources for additional work inthe forest interface as part ofthe Ashland Forest Overthe past six years personnel costs (including salaries and benefits), central 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 J% Is Personnel mSupplies & Communications rRepair &Maintenance I Contractual Services m Central Service Miscellaneous Charges is Other Purchased Services m Franchise Tax a Conservation Programs City of Ashland Water Rates Cost of Service Study March is, 2o16 Page j.9 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 loon Interfund loon 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 $1,851,985 $2,212,398 $2,708,907 $6,437,576 $6,273,414 $5,208,591 Source: City of Ashland CAFRs. City of Ashland Water Rates Cost of Service Study March iS, 2o16 Page 20 4-1 REVENUE REQUIREMENT The revenue requirement refers to the amount of money that must be raised a nnuallyth rough rates. The projection ofrevenuenequirennentisthereforethecornerstoneforca|cu\ationof rates. This section explains the derivation of revenue requirement for this Study. Components ofrevenue requirement include: • Capital Improvements • Debt Service • System Rehabilitation • Operations Expenses and Reserves (]tyT|Dnon-potable vvatersa|esrevenue asvveUasother non-ua1ersa|esrevenue projections are credited against projected openaUonscosts.Non+matersa|esindudeinterOovennnnenta| revenue, interest on investments, new service installation revenue, and other miscellaneous revenues. 4-1'1— Capital Improvements The Cit/swater system capital improvements plan (C|P) is shown in Tab|eA-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 CC[) 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) inimprovements, $ZO.3million isassumed to be funded with SRF loans, $2.1 million is assumed to be funded with bond proceeds, $3.8 million with cash raised by rates specifically for system rehabilitation, $0.4 million with other water fund cash, and $2.Omillion with use ofrestricted reserves for capital improvements. 4-1-2' Debt Service Existing debt service of the water fund is shown in Table A-5. 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. StateofOregnnnevo|vingfund|oandebt payments are estimated 10begin infisca|yearZ017'lD. New debt service estimates for projects bondfunded6vthe(]tyareshovvninTgb|eA-6.Tab|e A-7 shows the assumptions and debt service for financing the new water treatment plant and City of Ashland Water Rates Cost of Service Study March is, 2oi6 Page 2:1 Table 10 Summary of 10-Year CIP for Existing Customers N O O tOh t(t Ito V)- O Vt ry o O O N tOLn Ln m m r`�n o M M M N ih t/ 1J 00 O � V)- V-1 tO/1 tt� O N N N N N M tQ0 0) M N tilt th N ct CY cl' Oi c1' LoLn Lr) Ln ct th a 00 m 00 00 00 O N� N) y, N 00 N it} r, O" It V)-Oq M P ^ O 00 LD M Lr -zs N r- O Ull P, N 0) UI) M M r 1i Ol O to tt} O M Ln N IJ} tit} tMt} r,N rJ N i/, dt ON 000 if)-N CD to Utz CY) LO �-I h O M a N 1Nh O O O Ol 05 N O N N IH -4 Utz M N r-I th tt} ih ih rf O O O O O O O O LO d' tt} d' th r- N -q cf' w N N M M M N N N O d" 1, M N O GO M dt O 1` O M if} th th ih CD Ln N Ilr N OIH ct IH O Ln _ N N N rl 00 01 M N t0 Ct' N N Uft ci N 0) tt ++ LO m 't rn O tN 0 CNO ~ 06 rr i i - M r- N 00 N ih tt} i-I th th N ih t/} i!1• L u O N G7 U N LL M n LL -o C u C (A — 4 C LL ill U CG C Q C C cc O � E LL tL O L o W a o 0m 0 n V I- U F v o F C N E Q) O Q E -a m U O I � u v Q1 tll O E a' U G) N 49 c O v� a Q v o . 0 0 U n. r - c u a) C a o > o 6 a Q E S v � E u N R u S L � !Q � U u W = U{I > m o � U° City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page 22 4.1.3. System Rehabilitation Depreciation is used as the basis for which to collect rates to cover system rehabilitation costs. It is recommended that the City collect water 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 2015-16 Base 2016-17 1 Annual Depreciation 2017-18 2018-19 2019-20 2 3 4 2020-21 5 2021-22 6 Existing Assets Water Rights $0 $0 $0 $0 $0 $0 $0 Buildings $0 $0 $0 $0 $0 $0 $0 Equipment $11,832 $8,189 $1,390 $1,390 $1,390 $1,390 $1,390 Improvements $676,083 $673,081 $663,935 $663,935 $663,735 $661,981 $657,684 Total Existing $687,915 $681,270 $665,325 $665,325 $665,126 $663,371 $659,074 New Assets Improvements $121,580 $323,159 $489,396 $494,288 $503,811 $511,829 $517,412 Total New $121,580 $323,159 $489,396 $494,288 $503,811 $511,829 $517,412 Combined Existing & New $809,495 $1,004,428 $1,154,721 $1,159,613 $1,168,937 $1,175,200 $1,176,486 % Included in Rates 100% 100% 100% 100% 100% 100% Amount In Rates $1,004,428 $1,154,721 $1,159,613 $1,168,937 $1,175,200 $1,176,486 Source: City of Ashland and HEC 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 Index (CCI) increase and 1.8%-2.2% Consumer 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% for TAP water costs, and 3.0% for all other operating costs. 4.1.5. Calculated Revenue Requirement Table 12 on the next page estimates the revenue requirement of the waterfund 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 in the Water Master Plan. City of Ashland Water Rates Cost of Service Study March 15, 2oz6 Page 23 Table 12 Projected Revenue Requirement Revenues and 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Expenses Base 1 2 3 4 5 6 Operating Expenses Personnel 4.0% $1,737,310 $1,806,802 $1,879,074 $1,9S4,237 $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 [11 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 10% $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 $247'551 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 Change from Base Year Water Sales Annual Change Percentage Change $453,291 $451,941 $450,491 $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 2.0% $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 $5,790,127 $7,067,244 $7,384,483 $7,638,716 $7,903,258 $8,171,870 $8,456,944 base $6,515,358 $551,886 $869,124 $1,123,358 $1,387,900 $1,656,512 $1,941,485 $551,886 $317,239 $254,234 $264,542 $268,612 $284,974 8% 4% 3% 3% 3% 3% Source: HEC. [1] Maintenance costs reduced in year I by$63,000 which is the average amountspenton 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 increaseto 75 cents per 1,000 gallons. in 2016 and thereafter 3.5% per year in the Model. [31 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 15,2Di6 Page24 approximately $2.3 million of existing cash reserves will be depleted. 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 ofthe 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 $81,000. This Study calculates the costs of the TID system at $52,870 forfiscal year 2015'16. Table A-10 shows annual costs comprise city canal maintenance costs as well as staffing and materials costs. Table /k-11 provides supporting cost estimate for annual maintenance costs. Tlnirrigation vvaterissupp|iedundera1924,1926and 1935contract between the CbvandT|D. This contract allows for use of 769 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 water treatment 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. Under this circumstance only the 'front side' canal users, located before the diversion tothe 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 ofT|D system costs between unnnetened and metered non - potable water customers for fiscal year 2015-16. City of Ashland Water Rates Cost of Service Study March is, 2o16 Page 2S Table 13 Calculated TID Use Rates for Fiscal Year 2015-16 Current Calculated Item Calculation Rates 15/16 Rates Total llDAnnual Cost o $5I870 Metered Rate per Cu. Ft. b $0-0055 $0-0022 SOU Annual Costs [1] c=7,1Ot,G9O*b $15,348 LithiaPark ([ity)Annual Costs [l] d=1,02O,495*b $I,205 UnmeteredIrrigators Costs UnmeteredIrrigators Acres UnmnetenedAnnual Rate per Acre e=a-c-d $35,316 e 174 Source: City vfAshland andHsc [1] Excludes service charge and meter replacement fee. Cost share based onT|Dwater use ' see Table A-10: Total Cubic Feet 24,463,405 SOU Cubic Feet 7'101,690 Lithia Park Cubic Feet 1'020'495 All Other Irrigators Cubic Feet 16,341,220 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 rotes less than those in effect for domestic water. The calculated rate for metered cUStOrner3 is less than the current rate. The rate for unmetered customers does not immediately increase to cost of service. It gradually increases over the next six years tOcost Ofservice, Rate per Rate per Acre Table 14 shows the calculated offset to the revenue requirement over the Study period. City of Ashland Water Rates Cost of Service Study March 1S, 2oi6 Page26 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 $4,231 $432 $446 $460 $466 $487 $502 Lithia Park (City) $2,257 $351 $362 $373 $377 $395 $407 Metered Water Use [2] 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 Total 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 $SS,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 HEC. [1] Customer charges and meter replacement fees for one 6" meter (SOU) and one 4" meter (Lithia Park). [2], (3] 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 $193.11 $196.20 $209.30 $222.40 $235.50 $248.59 4.3 METER REPLACEMENT PROGRAM 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 Iectingfunds 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 15, 2oi6 Page 27 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% 0,59% 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 HEC. f1l 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 CO 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 Size Base 1 2 3 4 5 6 Annual escalator 3.129,6 3/411 $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 $3.26 211 $3.65 $3.76 $3.88 $4.00 $4.12 $4.25 $4.38 311 $7.81 $8.06 $8.31 $8.57 $8.83 $9.11 $9.39 411 $16.98 $17.51 $18.05 $18.62 $19.20 $19.80 $20.41 611 $23.54 $24.28 $25.03 $25.81 $26.62 $27.45 $28.30 811 $28.39 $29.27 $30.18 $31.12 $32.10 $33.10 $34.13 Source: HEC. City of Ashland Water Rates Cost of Service Study March iS, 2o16 Page28 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 generally consist of costs that a util 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-14 shows how the expenses in the City's budget were allocated to the 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 costnfcurnentvvotorsystmrnassets.Tota|cosiisa||ocatedto customers, meters and services, capacity, and commodity. 2. Ratio of Average to Peak Month. The calculation of peakto average month flows is shown in Table 3. Expenses are allocated 55% to customers and 45% to use functions using this methodology. 3. Utilities. All utilities costs (electricity) are allocated 100Y6to commodity because they are directly affected by the amount of water delivered. TAP water is also allocated lOO76tocommodity. 4. Customers. Central service costs and costs such as office supplies, telephones, computers, postage and insurance are allocated 100% to customer costs. These costs are not affected bythe amount ofwater delivered. 5. Average of Classified Costs. Many expenses are allocated to multiple functions of water 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 costs, professional services, and training costs. Customer, meters and services, and eportion 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.s ,M1Manual, pp. 137-138. City of Ashland Water Rates Cost of Service Study March IS, 2oi6 Page29 The portion of capacity costs allocated to the flat monthly fees is referred to as a readiness to serve charge. The a I location of revenue requirement using the functional I allocation is shown in Table 17. Table 17 Allocation of Revenue Requirement to Cost Functions Functional Total Revenue Requirement $�3,230�067,244�384,483 $7,638,716�903,258 $8,171,870 $8,454844 Customer znm g1,177,781 $1,2/2104 $1:29,207 $1,374,969 $1,422587 $1,470937 $1,522232 Meters & Services sm $327,162 $353,362 $369,224 $381,936 $395,163 $408,594 $422,842 Capacity (in flat charge) [1] 19m $1,243,214 $1,342,776 $1'403.os2 $1,451,356 $1'501,619 $1,552,655 $1,606,800 Capacity (in use charge) aru $2'028,4o1 S2,1e0,846 $2'289'190 $2,368,002 $2,450,010 $2,533.280 $2,621,622 Commodity zrm $1,766,672 $1,908,156 $1'e93'810 $2,064453 $2,133'880 S2,206,4e $2,283,348 Source:xEC, CpThe readiness to serve charge. [2]m20nthe City collected 45mmwate,charges mflat monthly charges; however, this was "drought year. During drought years the base charges comprise ° larger portion of total revenues. 5.2 RATE DESIGN Allocation of costs to customer categories is based on the Commodity -Demand method described inthe K41Manual Chapter Ui2.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: • Rates must be capable of generating sufficient revenues to meet all annual financial obligations ofthe water enterprise fund; • The rate structure should encourage water efficiency; w Change tothe rate structure must beadministratively feasible (compatible with the existing billing system and straightforward to explain to customers); • The rate structure should be as representative of local customer water use patterns as possible; and • Revised rates must be supportive ofCity goals, keeping within affordability guidelines. With these objectives in mind, the differential in costs by pumping zone was analyzed. The analysis did not show any significant differences in costs by pumping zone; this potential change tothe rate design was discarded. City of Ashland Water Rates Cost of Service Study March 15,2o16 Page30 Flat Monthly Costs. The customer, meters and services, and readiness toserve 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 water account has rnuidp|e 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. Tab|e1D Calculation of Customer Service Costs per Account Allocated To 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 pnojrctedAnomalGrowth Rate 859% 859% 859% 859% 859% 859 Yo Revenue Requirement Allocated $1,177781 $1,272104 $1,329,287 g1,374,968 $1,422,587 $1,4/0,937 $1,522,232 Tota|C|tyvvnterAccounts 8,980 9'033 9'087 9'140 9,194 9,249 9'303 Customer Cost per Bill per Year $131.16 $140.83 $146.28 $150.43 $154.72 $159,04 $163.62 Cost per Month $10.93 $11.74 $12.19 $I2.54 $2.89 $23.25 $13.*4 Source: otyo//uuunuand 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 to a 3/4" meter. Meter ratios reflect the difference in water volume that can be taken through the meter. Calculation of equivalent meter ratios is shown in Tables 20 and/\-16. 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 :L5, 2oi.6 Page33. water meters. In 2014 the City collected 55% of costs through use charges.' 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 $13.42 $13.80 $14.19 $14.60 V 1.00 $11.70 $12.56 $13.05 $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 $93.61 $100.51 $104.41 $107.36 $110.43 $113.51 $116.78 31, 16.00 $187.22 $201.02 $208.81 $214.73 $220.86 $227.02 $233.56 4" 25.00 $29153 $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 $1,073.65 $1,104.30 $1,135.12 $1,167.80 Source: OtyofAshland 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 Meter Size Number of Meters Ratio to Equivalent 3/4" Service Meter Units Ill 3/4" 7,814 1.0 7,814 1.. 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 8" 1 80.0 80 Total 8,673 11,194 Source: TabI e B-1 of the AWWA MI Manual, Cityof Ashland, and HEC. [1] Uses safe maximum operating capacities of C-700-09 Disip I a cement Type Meters (bronze main case} for meters smaller than 2" and C-702-10 Compound Type, Class I for meters 2" and larger. 7 Percentage will fIuctuate 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 15, 2o16 Page32 This Study proposes to keep the City's current increasing block rate structure for most customers for use charges. Properly designed increasing block rates recover class -specific costs of service while sending a more conservation -oriented price signal to that class.8 The M1 Monua|paDell6o|sosunnnnarizesthot"increasingb|ncknstestrucLunehavefoundgrovvinguse inareas experiencing growth inwater demand that isreaching the safe yield orcapacity nfthe 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" or less use approximately twice the amount of water 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 summer to average month ratio isclose tnone for institutional customers and the nnaxirnurn month usage is in May, before the peak use for the water system as a whole. 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 orate structure that encourages efficient use ofwater during the summer months isvery important. Figure 8 Monthly Water Use by Customer Type � ~�~ «r �"A�A +� � —Commercial Resident u/ ---/nigamn »K8IManual page 111. City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page33 Table 21 Customer Usage Characteristics 0 = " r- ::I: 0 E .0 E > Z Ln w 0 CD rI4 w (n w p E N f-j N 14 14 ryi E Ln W tw Ln 1-1 0 00 0 00 E m (N 0 CD rH Q0 0 4� a U') rIj M CY) M 00 0 E w rl- 06 LA Ln 0 QD r-I 0) bp I'D t.D 00 0) PI- �t 4, 41 M N 'zt 0 0 00 L.0 tw z r- Ln CD -i (D Do CD Co 0) 1.0 CO CD cOa I- rIj 0 M M (U r1i ro 00 r, M W MD tic E E -4E (5 < < a < w E O v UO M 0) -i M ri MO lzt 0) 0 00 Ln M LA r'j UD 0') Ln �o 0 Q) Lrl 6 C� 5rQ, I Qj ::. Z3 U b4 — 'T rIj rIj �t 0 r-j 4, N 00 M rl- CDr- rII r- > 0 D < 5 r- � M = co Ln 00 0 dt r" :5 41 C w CY) 0 U) 00 Ln -1 M M a) LnD I' 'I w 0 5; to 0 M cm .E 4In 0 M 0) rr� a) N CO = rr) to 6 4, 0 0 �D M r, to LD .0 CD MLn n r, N Ln E E E :3 41 OjtD LO 0') Ln rr) Ln 06 Ic z U C) b.0 '0 G 4 U 0 nn 0- C (u r 0) 2 V i�'j 2 O. 41 -F — < ro iB W 4( M 2 a) 4- E C aj 0) w E E U 0 CU -a 7a E E 0 C: Qj Ln U U z City of Ashland Water Rates Cost of Service Study March IS, 2o16 Page34 Use by customer type by month is further examined by water meter size in Table A-17. The table shows that use is driven by customer category and by meter size. Based on use characteristics by customer type the proposed rate structure includes five customer categories, designed to capture customer use patterns. The customer categories include residential, commercial 3" orsmaller, commercial greater than 2", institutional, and irrigation. Bill Tabulation. Bill tabu|ahOn is a tool used to analyze customer use data to d21err0iD8 appropriate rate blocks. Bill tabulations and analysis for residential customers are shOvoD in Tables A-18through Ar2O.ODaDannual basis, residential customers take 3OY6ofwater in tier l,37Y6intier 2,l9Y6intier 3,4Y6iDtier 4and 396intier 5(summer months oniy). 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, I, and 3. Only excessive vv@t2r users (the top 7% of water) are billed in tiers 4and S. Tier only applies during the summer (June through September)'. Figure 9 Residential Water Use by Tier 50% ��� — �� �� 1!Tier .[ �P.Tier 2 F.,Tle[3 40% � 3796 pa 30% 20% 10% G%' 594 3% 0%�����Residential - Winter Residential - Summer Residential -Annual Non-residential bill tabulation under the current rate structure is shown in Table 4r31. The table shows large discrepancies inwater billed under tiers land 2among the different non- residential customer types (irrigation, COnnnn2rCi@| and institutional) as illustrated in Figure 10, This Study recommends only charging commercial customers two tiers. The proposed 9 Tier 1 is intended to capture typical customer monthly indoor water usage. Tier 2 is intended to capture 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. City of Ashland Water Rates Cost of Service Study March :L5, 2o3.6 Page3S 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% 0 Tier 1 99% 100% LA, Tier 2 88% 80% 60% 60% 40%,ram 40% HU 10ya 20% 1P, 12% 1% E5 4; R%3% 0% Commercial Institutional Irrigation Figure 11 Commercial Water Use by Tier (proposed rate structure) 70% 60% 50% 65% 61% 0- Tier 1 ut Tier 2 39% A nol- 30% 20% 10% 0% 351 . . . . . . . . . . . WMATIOMs 1111 NOTA IT, 17-4 = M City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page36 Mk* aq*'7rJGJMeL 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 Projected Potable Water Demarg, Potable Water Customer Residential Single Family Multi -Family Subtotal Residential Non -Residential Commercial <2" meter Commercial 2"+meter Institutional Irrigation Subtotal Non -Residential Total Billable 2015-16 Base 2016-17 1 2017-18 2 2018-19 3 2019-20 4 2020-21 5 2021-22 6 Figures in Cubic Feet 62,048,584 62,463,798 62,760,506 63,092,739 63,426,063 63,763,271 64,099,340 20,299,186 20,443,836 20,544,128 20,654,585 20,765,447 20,877,506 20,989,338 82,347,770 82,907,634 83,304,634 83,747,324 94,191,510 94,640,777 85,088,678 10,276,017 10,477,157 10, 522, 645 10, 576, 058 10, 629, 590 10, 683, 875 10, 737, 773 7,446,478 7,592,234 7,625,196 7,663,901 7,702,694 7,742,031 7,781,088 6,197,355 6,282,192 6,314,230 6,348,832 6,383,577 6,418,661 6,453,731 14, 792, 917 14,121,921 14,133,872 14,179, 296 14, 224, 212 14, 271, 344 14,315,774 38,712,767 38,473,504 38,595,943 38,768,087 38,940,073 39,115,911 39,288,367 121, 060, 537 121, 381,138 121, 900, 577 122, 515, 411 123,131, 582 123,756,698 124, 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:CityofAshland 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 1.5, 2oi.6 Page 37 Table A-2#compares the water demand projection in the Study to water demand projections in the 2012 Water Master Plan. It also shows derivation of the average annual growth rate used inthe Study. This cost ofservice water rate study projects |ovverdennandsihan1heIUl2VVater 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.]). Total costs allocated touse charges equals capacity costs allocated Lnuse charges and commodity costs. The allocation of these costs by customer type is shown in Table A-29, A support table tothe allocation ufcommodity costs isshown inTable /\-3O. Table 23 on the next page shows the calculation of usage charges. The cost ratios between residential tier 1 and tier 2 is 0.80. Between tier 2 and tier 3 the ratio is 1.35, between tier 3 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 2water. 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 inTable 24onpage 4O.Monthly service charges include the meter replacement fee. City ufAshland Water Rates Cost ufService Study March zauma pageau 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 $3,795,073 $4,099,001 $4,283,000 $4,430,455 $4,583,890 $4,739,685 $4,904,969 Total Consumption 121,060,537 121,381,138 121,900,577 122,515,411 123,131,582 123,756,688 124,377,045 Cost per Cubic Foot [1] $0.0313 $0.0338 $0.0351 $0.0362 $0.0372 $0.0383 $0.0394 Institutional Costs Insitutional Cost $170,913 $184,600 $192,887 $199,528 $206,438 $213,454 $220,998 Insitutional Use 6,197,355 6,282,192 6,314,230 6,348,832 6,383,577 6,418,661 6,453,731 Institutional Cost per Cu. Ft. $0.0276 $0.0294 $0.0305 $0.0314 $0.0323 $0.0333 $0.0342 Residential & Commercial Costs Residential Cost $2,613,129 $2,822,401 $2,949,094 $3,050,626 $3,156,275 $3,263,548 $3,377,356 Commercial Cost $466,606 $503,975 $526,597 $544,727 $563,592 $582,747 $603,069 Total Resid. & Comm'I Costs $3,079,735 $3,326,375 $3,475,692 $3,595,353 $3,719,866 $3,846,295 $3,980,425 Estimated Usage by Customer Group by Tier 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'l) 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'l) 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 Tiers (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 Tier 1 (Residential) 0.80 $0.0230 $0.0246 $0.0256 $0.0263 $0.0271 $0.0278 $0.0287 Tier 2 (Residential & Comm'l) Loo $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 Ti e r 4 (Resi cle ntial) 1.75 $0,0502 $0.0537 $0.0559 $0.0575 $O.OS92 $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. (11 Bulk water rate is the average cost of water collected in use charge for all customer types. [21 Commercial and Institutional Irrigation services. City of Ashland Water Rates Cost of Service Study March 15, 2o:16 Page39 Table 24 Summary of Calculated Water Rates Rates Effective on July 1 Bills Charges Current 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Customer Charge $0.00 $11.74 Service Charge 3/4" and Fire Guards $23.50 $13.75 ill $46.99 $14.34 1.5" $66.99 $65.61 2" $88.24 $104.27 3" $184.50 $209.08 4" $282.07 $331.60 6" $528.92 $652.47 8" $881.49 $1,034.38 Potable Water Use Charges Bulk Water Ill Institutional Water Ill Residential [2] Tier 1 $0.0243 Tier 2 $0.0299 Tier 3 $0.0400 Tier $0.0517 Tier 5 (Jun -Sep only) $0.0673 Commercial [3] Tier 1 $0.0343 Tier 2 $0.0353 Irrigation [4] Off -Peak (Oct - May) Ill On -Peak (Jun - Sep) Ill Monthly Charges I$ per Bill) $12.19 $12.54 $12.89 $13.25 $13.64 Monthly Charges ($ per Meter Size) $14.27 $14.68 $15.10 $15.52 $15.98 $14.88 $15.31 $15.75 $16.19 $16.66 $68.13 $70.07 $72.08 $74.10 $76.24 $108.28 $111.36 $114.55 $11736 $121.16 $217.12 $223.30 $229.69 $236.13 $242.95 $344.32 $354.13 $364.29 $374.52 $385.35 $677.56 $696.84 $716.81 $736.90 $758.18 $1,074.23 $1,104.77 $1,136.39 $1,168.21 $1,201.93 $ per cubic foot $0.0351 $0.0362 $0.0372 $0.0383 $0.0394 $0.0305 $0.0314 $0.0323 $0.0333 $0.0342 $0.0246 $0.0256 $0.0263 $0.0271 $0.0278 $0.0287 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0,0484 $0.0537 $0.0559 $0.0575 $0.0592 $0.0609 $0.0627 $0.0691 $0.0719 $0.0739 $0.0761 $0.0783 $0.0806 $0.0307 $0.0319 $0.0329 $0.0338 $0.0348 $0.0358 $0.0415 $0.0431 $0.0444 $0.0457 $0.0470 $0.0484 $0.0331 $0.0345 $0.0356 $0.0367 $0.0378 $0.0390 $0.0449 $0.0469 $0.0483 $0.0498 $0.0513 $0.0530 Source: HEC. [1] Currently charged the same as commercial customers. [21 Tiers do not change under new rate structure. They are: Tier 1 - up to 300 cf, Tier 2 - 301-1,000 cf, Tier 3 - 1,001-2,500 cf, Tier 4 - 2,501-3,600 cf, Tier 5 -greater than 3,600 cf. Residential irrigation services currently charged the same as residential domestic services. Under the new rate structure irrigation use would be combined with domestic use. [3] Commercial currenttiers are <50,000 cf and >50,000 cf, Newtiers are <2,500 cf and >2,500 cffor commercial customers with meters <2" and <15,000 and >15,000 for I a rger meters. [4] Seasonal rates for commercial and institutional irrigation meters. City of Ashland Water Rates Cost of Service Study March 15, 2oi6 Page 40 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 underthe new rate structure are provided in Table A-32. Table 25 Cost Allocation by Customer Type Customer Current (per Budget) New (see Table A-32) Cost Redistribution Type Total Share of Total Share of As % of Total Total Total Current 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% -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% 0% $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 $6,596,100 100% $6,596,100 10051. 0°% $0 Source: Cityof Ashland and HEC. Figure 12 Redistribution of Costs to Customer Types Fire Guards TID Water Institutional Fta Irrigation t Commercial Residential tr 0.0% 10.0% MID% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Residential Commercial Irrigation Institutional TO Water Fire Guards M- New 70.7% 12.5% 11.4% 4.1% 0.8% 0.5% Is Current 70.1% 14.2% 9.9% 4.2% 1.2% 0.4% City of Ashland Water Rates Cost of Service Study March is, 2oi6 Page 41 5.5 PROJECTED CASH FLOW AND FUND BALANCE Table 26 projects cash flow through fiscal year2021-22 forthe operating fund. With adoption 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 a targeted reserve of 20% of annual revenues in every year. Table 26 Projected Operating Fund Cash Flow Revenues and 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Expenses Base 1 2 3 4 5 6 New Rates Effective 71112016 71112017 71112018 71112019 71112020 71112021 Revenue Municipal Water Sales TID Water Sales Other Revenue Sources Total Revenues Operating Expenses Net Revenue before Debt Service and System Rehabilitation Debt Service Debt Service Coverage [11 System Rehabilitation Additional Cash for CIP Projects Net Revenue $6,521,112 $7,067,244 $7,384,483 $7,638,716 $7,903,258 $8,171,870 $8,456,844 $80,742 $50,800 $53,727 $56,676 $59,632 $62,642 $65,663 $161,200 $163,736 $166,323 $168,961 $171,652 $174,397 $177,197 $6,763,054 $7,281,780 $7,604,533 $7,864,353 $8,134,543 $8,408,910 $8,699,704 $5,002,770 $5,109,906 $5,281,831 $5,459,577 $5,643,347 $5,833,351 $6,029,809 $1,760,284 $2,171,874 $2,322,701 $2,404,776 $2,491,196 $2,575,559 $2,669,895 $617,059 $857,445 $1,272,981 $1,490,164 $2,057,259 $2,050,359 $2,048,409 2.85 2.53 1,82 1.61 1,21 1.26 1.30 $0 $1,004,428 $1,154,721 $1,159,613 $1,168,937 $1,175,200 $1,176,486 $402,240 $1,933,647 $32,079 $0 $0 $0 $0 $740,985 ($1,623,647) ($137,079) ($245,000) ($735,000) ($650,000) ($555,000) Beginning Balance [2] $3,264,915 $4,005,900 $2,382,253 $2,245,174 $2,877,387 $2,764,848 $2,820,848 Net Revenue $740,985 ($1,623,647) ($137,079) ($245,000) ($735,000) ($650,000) ($555,000) Transfer In (Out) $0 $0 $0 $0 $0 $0 $0 Add Back Rehabilitation Net of CIP $0 $0 $0 $877,213 $622,462 $706,000 $841,486 Ending Balance $4,005,900 $2,382,253 $2,245,174 $2,877,387 $2,764,848 $2,820,848 $3,107,335 Target Balance [3] $1,352,611 $1,456,356 $1,520,907 $1,572,871 $1,626,909 $1,681,782 $1,739,941 Source: City of Ashland and HEC. [1] Minimum requirement of 1.20 assumed. [2] Beginning balance as of July 1, 2015. [3] 20% of operating revenues. Projected water fund balances are shown in Table 27. This table includes the capital fund which is funded with SDC revenues. Figure 13 illustrates the historical and projected water fund balance. The water fund balance is projected to decrease from $5.00 million to $4.16 million in fiscal year 2021-22. City of Ashland Water Rates Cost of Service Study March 15, 2o16 Page42 Figure13 Water Fund Balance $rpuuoOD Historical $3,000,000 Table 27 Projected Water Fund Balance MWater Fund Balance Projected 2015-16 201*17 2017-18 2018-19 2019-20 2020-21 2021-22 Projected Cash Balances Base z u o o s o oneramv« Beginning Balance $775,215 $1,516,200 $1'826,200 $1'721.200 $44/6'200 $741,200 $591'200 Revenues $6,763'054 �$/'281,780 $7'604,533 $7,864,353 g8z34,543 g8,408,910 $8'699,704 Expenses ($6,022,069) ($8'905,427) ($7'7*1,612) <$8'109'353> ($8,869'543) (g9,058,910) <$9'254,704A TAP Contingency $o go $o $u go $o $o Transfer m(om0 $n $1.933,647 $32'07* $u $n $soo'uuo $504000 Ending Operating Balance $1,516,200 $1,826,200 $1,721,200 $1,476,200 $r*zum $591,200 $536,200 System Rehabilitation Beginning Balance $2'48e.700 $2'4e9^700 $sso'oss $523.e74 $z'ouz'mr $2.023'649 $2.22e'64e System Rehabilitation Revenue $o $4004'428 $1'154'/21 $1'159'613 $1'168'e37 $1'175'200 $1'176'486 Revenue used for c/pProjects $o ($1'004'428) ($1'154,721) (gzuz.mo) ($5*6'475) ($*6e'200) ($ass'noo) Transfer m(out) $o ($1'933'647) ($au'o/y) go $o ($suo'noo) ($sno'ouu) Ending Rehabilitation Balance $2,489,700 $556,053 gsaz.yr^ $4*01'187 $2,023'649 $2'229'649 $2'571^135 Total Operating Balance g4,005'900 $2'382,253 $2'245'174 $4877'387 $2,764,848 gz.ozo^u*x $o'zur'uos con/ta| Beginning Balance $1,943'676 $991'716 $1'070'716 $1'061'716 $z'osz'oa $z'cwu',zo $1'04*./16 Add socRevenue [1] $mo'ouo $zso'onn $uao'uoo $xou'uno $zm'000 $z,n'oun gmo'uoo Future Customers c/pp^xs ($1'051.960) $u $o $o $o $n $o Debt Service $u ($171'000) ($zay'uuu) ($zuy'000) ($274,000) <$274,000> ($274,000) Transfer m(out) $o gu $o $u $o $u gn Ending Capital Balance g991,716 $1'070,716 $1'061'716 $z.usz.rz* $1.048'716 $1'044,716 $1'050'716 Water Fund Balance $4,997,616 $3'452,969 gs'soo'uyo $3,930,103 $a'ozs'sov $3'865'564 $4,158'051 Source; HEc City of Ashland Water Rates Cost of Service Study March 2.S, 2o16 Page43 5-1 BILL IMPACTS Bill impact analysis isused to demonstrate the new rate structure and the redistribution of costs among customertypes in Tables A-33 through A-41 for the 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 ofservice analysis (see Table &-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 wo uld 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 season begins, this is appropriate. Institutional bills for 2" and 4" customers are shown in Tables A-38and A-38. 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- peakrnonthsvvaterbi||svvou|dincreaseifnovvatervvaoLaken.Thisrefectsbi||ingtheMat 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-4Oand /\-41. Under the calculated water rates for July 1, 2016, a Y4" meter single family home using 1,000 cubic feet in a month would pay $54.3S,which isl.5V6nfthe estimated median household income for Ashland. The proposed water rates are affordable under EPA guidelines. These calculations are shown inTable 28. City of Ashland Water Rates Cost of Service Study March 3.5, 2o3.6 Page44 Table 28 Affordability Test Annual Item Annual Increase Monthly Ashland Median Household Income [1] 201516Water Rates 3N"using 1,000cu. ft/mo Current Water Rates as % ofAshland MH| ZO16'l7VVaterRate s8/4"using1,8OOcu. ft./mo Proposed Water Rates % of Ashland MHI $652 $54.35 Water Rates @IO%ofK4H|[21 $87 $87 $72.50 Water Rates @ 2.5%mfMH| [7] $1,088 $1,087 $9063 Source: USCensus. [I]lUl45-yearAmeicanCommunity Survey estimate. [2] Per EPA guidel ines awater rate greater than Zy6is high and a water rate higher than 2,596isburdensome. 6-3 COMPARISON OF WATER RATES Figure 14 illustrates what a household with a %" meter using 1,OOOcubic feet inamonth 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 15, 2oi6 Page45 Figure 14 Comparison of Single Family Monthly Water Bill $sD $70 $60 $50 $40 .. _._ $30 77 $20 k f `R $10 aota QayS h QpC a��e � �e �tac ec`a L afar Monthly Water Bill for 1,000 cubic feet sx, Consumption Charge M Service Chargef M IN, i 4 M Q �4 P- JEW 17 k a" a... Dell \fie 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 guidelines10, 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 3f4" 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 " "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 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 $0 $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 $is $0 Intergovernmental Revenue $99,928 $344,396 $336,811 $1,969,979 $89,747 $70,473 $14,000 Interest on 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 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 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,S33 $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 Fiscal Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Central Service Insurance Service Technology Debt Use of Facilities Bad Debt Expense Other Licensing Subtotal Miscellaneous Charges & Fees Advertising Air Personal Vehicle Mileage Lodging Meals Training Dues Medical & Laboratory Subtotal Other Purchased Services Franchise Tax Capital Outlay Debt Service TOTAL DISTRIBUTION TREATMENT PLANT Salaries & Wages Benefits Subtotal Personal Services Office Small Tools Uniforms - Clothing Uniforms - Other Technical Chemicals Emergency Work Books & Periodicals Subtotal Supplies Fleet Maintenance Fuel Replacement Maintenance Electricity Custodial Grounds Care Infrastructure Subtotal Rental, Repair, Maintenance $549,753 $549,753 $570,000 $632,000 $646,640 $659,530 $692,510 $35,760 $35,760 $34,900 $34,900 $34,900 $34,900 $35,600 $50,000 $50,000 $50,000 $50,000 $50,000 ' $50,000 $50,000 $125,883 $125,883 $80,000 $80,000 $80,000 $80,000 $80,000 $6,204 $10,089 $7,894 $3,620 $22,504 $13,224 $12,000 $0 $0 $3,000 $2,111 $583 $0 $0 $5,546 $8,623 $8,423 $6,321 $10,965 $5,104 $37,700 $773,147 $780,109 $754,217 $808,951 $845,592 $842,758 $907,810 $0 $0 $0 $0 $0 $1,875 $0 $0 $0 $0 $0 $0 $1,533 $3,000 $0 $0 $0 $284 $0 $0 $350 $0 $517 $0 $510 $0 $939 $2,000 $0 $1,006 $0 $113 $0 $334 $350 $2,602 $423 $2,470 $1,655 $0 $89 $4,000 $268 $1,082 $0 $0 $0 $0 $0 $9,595 $10,710 $10,545 $11,563 $11,526 $12,567 $15,000 $12,466 $13,737 $13,015 $14,125 $11,526 $17,338 $24,700 $419,978 $342,525 $294,695 $356,283 $357,799 $372,200 $402,653 $53,865 $72,088 $109,315 $84,197 $206,990 $104,317 $1,105,200 $325,990 $330,336 $327,051 $137,064 $333,461 $329,340 $250,649 $2,687,960 $2,614,882 $2,523,125 $2,541,263 $3,012,767 $3,014,709 $4,224,682 $275,564 $298,719 $294,268 $312,259 $308,548 $332,754 $340,050 $112,364 $140,315 $134,534 $154,592 $158,437 $177,449 $197,320 $387,929 $439,034 $428,801 $466,851 $466,985 $510,203 $537,370 $2,330 $5,154 $5,196 $2,214 $1,544 $1,180 $2,000 $798 $324 $463 $739 $559 $1,142 $800 $1,197 $454 $1,131 $805 $686 $2,084 $2,500 $245 $443 $774 $567 $60 $383 $500 $12,154 $10,438 $9,766 $15,213 $20,128 $10,446 $22,000 $147,418 $131,893 $111,049 $128,767 $157,280 $171,617 $220,000 ($12) $0 $0 $30 $0 $0 $0 $0 $140 $126 $186 $0 $170 $150 $164,131 $148,846 $128,505 $148,521 $180,257 $187,021 $247,950 $10,200 $10,200 $9,200 $9,200 $9,200 $9,200 $9,397 $3,211 $4,568 $6,255 $5,618 $9,846 $7,334 $6,500 $900 $900 $900 $900 $900 $900 $1,080 ($750) $0 $622 $0 $0 $0 $0 $37,102 $38,965 $46,948 $33,378 $34,855 $38,552 $38,000 $170 $476 $26 $98 $86 $116 $1,000 $2,873 $988 $1,064 $79 $308 $266 $1,500 $9,023 $7,077 $11,042 $10,176 $4,871 $21,531 $15,000 $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 Fiscal Year 2009-10 2010-11 2011-12 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 $D $0 $2,037 $960 $9,611 $2,500 Postage $5,4D8 $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 FOREST INTERFACE 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 $o $0 Debt Service $82,297 $83,328 $83,240 $77,098 $81,408 $79,825 $34,443 Unappropriated - Other Financing $0 $0 $0 $0 $0 $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 2009-10 2010-11 2011-12 Fiscal Year 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 $D $0 $0 $40 $0 $740 $800 Meetings $D $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 $7D0 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 TableA-3 City of Ashland Water Rate Study Historical and Budgeted mmte,pundopemdonExpmnditum, Fiscal Year 6me,oeo 200910 zozuzz 2011,12 2012-13 201*14 2014-15 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 $1,454,017 $1,566,6e1 $1,478,094 $1,594,018 $1'689'757 g178,06e $163,649 $153,291 $164,988 $1e8,225 $290,532 $289'177 $317^079 $32*'e33 $326,070 $14,630 $10,938 $10,675 $14,896 $15'801 $25'020 $21'873 $51'99e $63'664 g82,921 $716,497 $716,497 $748'700 $810,700 $828,e10 g525'25e $Bz'uzs $451,585 $437'887 $484,583 $96'e04 $e1'357 $92,581 $9/'546 $172'208 $419'978 $342'525 $294,*e5 $as*'zoo $357'79e $16,982 $20'999 $23'539 $21'191 $17'884 g221'016 $3e9'116 $485'/28 $2'460'085 g5/8,038 go $n $uoo $o $zas $3,954605 $4'125,137 $4`108'767 $6,345,190 $4,754332 Adopted 2015-16 $1,030,555 $1,/37,310 $07,113 $305,825 $340,938 $410,512 $23,521 $22,380 $95'860 $sss'soo $845'380 $887'650 $483'392 $517'020 $143'619 $207'320 $372'200 g402'6s3 $68'805 $114,500 $311,440 $D $2u'oz1 $0 $4,/50,855 $4,958,770 Capital Outlay $208,517 $192,146 $306,9e1 $241,732 $1,898,185 $2,/03,906 $4,541,040 Total $4,167,122 $4,307,283 g4,415,758 $6,586,922 $6,650,517 $7,454'761 $9,4*9,810 Source: City of Ashland. op exp Prepared byxsc mu13sModel Final 3/15/2o16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O ''.. 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IC>n 0 0 0 a 0 th 4j" 4./)- 4j)- I.,)- iA. 0 0 0 0 0 0 0 0 4.13- C) 0 0 0 0 0 0 0 4ili- 4 /')- V')- -cn qj)- -t• 4A. V)� 0 0 0 CD 0 0 0 C) tel- ll} if}- i/)- V)- ql*-)- vi- 4^ 0 0 0 0 0 0 0 0 m w m 0 T-1 0 C) C14 m m 0 U) 0 0 tT r--� rl� 6 06 06 Lf) CO (3) lzt �D (Ij w I-i m 00 tf} to V). Cs tw a) u 0 a) 1= LA 41 L. 0 41 4� 4� o Ncu a Ll� C) u V) c 41 E cu > C coil w C: 0 q < 0 S- to 0 U W 4- CL E a '— a) �: Ln 0) 1 (D 4� .t:! -Fo u C: " = m i7i m LA 4- Q) �7- -0 E 41 a 0 u V, o cn w 0 CO LU 'lz w z a_ Table A-7 City of Ashland Water Rate Study Estimated Debt for SRF Funded Facilities [m 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 II 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 $8,0S5,234 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% 3.571 Years 30 25 Assumes projects completed by October 2017 and first debt payment is due Dec 1, 2018. 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[21 Estimated finance and public works departments time and materials costs to manage T.|.D.agreements, billing and customer service. [3]Under the 1934,1926,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. [4] Uses water consumption from the last non -drought year (2012). Prepared byH8C 14D136Model Final 3/1s/2Ol6 Table A-11 City of Ashland Water Rate Study TID 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 Tab|eA-12 City ofAshland Water Rate Study Actual T|DNon-Potable Water Deliveries (Past 1OYears) Year Total Acre -Feet Municipal Use Spill to Creek Irrigation Use 1934,1926& 1935Cnntract Irrigation Use as 96ofContract [1] [2] [3] All Figures inAcre Feet 2004 75171 0.00 12375 627.96 769.00 82Y6 2005 478.57 UDO 123.75 354.82 769.00 4596 2806 659.93 0.80 I23J5 536.18 769.00 70Y6 2087 560.14 0.00 123.75 436.39 769D0 5796 2008 726.56 0.00 123.75 602.81 769.00 78% 2009 742.90 224.24 123.75 394.91 769.00 51% 2010 818J8 0.00 II375 694.98 769.00 90Y6 2011 755.37 0.00 123J5 631.62 769.00 82% 2012 731.81 0.08 1I175 608.06 769.00 7996 2013 981.49 205.15 123.75 65I59 654.00 10096 2014 1,173.94 565.44 12375 484.75 654.00 74% Average Excluding Drought Years [4] Source: Talent Irrigation District. »mum* [1]T|Dmeasurements. [2]City measurements. [3] In 20I3 and 2014TlD curtailed the amount allowed to 6S4acre feet. [4] Excludes drought years 2009, 2013, and 2014. Prepared byHcc l4Dl36Model Final JYlVl816 0 CL 4, E 0 0 0 m m Ln M r` �i 0 IZT cm 00 dT 0 N w rn 06 06 U� � V- & 410- N N -L4 V} 4ill. 4j). AA - ON lzT 0 N m 0 00 Ln M m r-j 14 th 000O(14 m Lm CD lzT 00 tD Ln Co F, C 01 r4 N CO rH 0 r.4 r-4 6 r%: ,,� in i/.)- rq t-4 0 CD Ln Ln I�f r-I lzr 0 0 rl N 0 m 00 cn Ln rn vn- oo (N V-, r` � 14 in V), IA- 0 0 Ln Ln I;T Ln r-i 0 LO 11, r- I-H V�- 00 V-, 0 ::1, Co 0 m T-q Ln r4 0 r"I Ln 0 ro N N Lr) r1 V)- uo (14 -V)- t-4 V)� VIP 40. 0 ID N m -i N Ln lD I-H r-I C) C14 N N vi- zT N4 ,4 th V). 4j,)- in 0 Zt � LM d to 1%% r-` C -A r-I rq rq 1A. 4 "1 .1 1-0 .1 N C to V-j CL 41 > 41 V) o u 4a 4� 3: L/) 0 u c C) cu C: 4' CL V) CU 0 C CU 0 41 0 u E U :E CL V) ,j 0c z Ln c -0 < 0 0) cr- 0 u 0 u c 0 E 0 z 0 LU ro O 0 o cu < 0 + 0 CY u u u CL < vo '-M 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% 100V 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% IDO% Miscellaneous $151,D50 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% 74% 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 & Wages $635,000 Avg, of Classified 0% 0% 0% D% 100% Benefits $394,7SO 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% D% 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 $I5,000 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 $29,000 Peaking Month Use 0% 55% 0% 45% 0% Replacement $61,560 Peaking Month Use 0% SS% 0% 45% 0% Electricity $60,000 Utilities 0% 0% 0% 100% 0% Water $D Utilities 0% 0% 0% 100% 0% Wastewater & Other $30D 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% 745/ IS% 0% Local $1,200 Customers 10094 0% 0% 0% 0% Long Distance $20 Customers 100% 0% 0% 0% 0% Cellular $3,700 Customers 1DO94 0% 0% 0% 0% Computers $2,500 Customers 100% 0% 0% 0% 0% Postage $2,000 Customers 100% 0% 0% D% 0% Radios $1,000 Customers 1DO% 0% 0% 0% 0% Professional Services $60,000 Avg. of Classified 0% 0% 0% 0% 100% Physician/Health $D Avg, of Classified 0% 0% 0% 0% 100% Other $50,000 Avg. of Classified ()% 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% 45% 0% Use of Facilities $80,000 Peaking Month Use 0% 55% 0% 45% D% Bad Debt Expense $12,D00 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 D% 0% 0% 0% 100% Lodging $2,D00 Avg. of Classified 0% 0% 0% 0% 100% Meals $350 Avg. of Classified 0% 0% 0% 0% 100% Training $4,000 Avg, of Classified D% 0% 0% 0% 100% Dues $0 Avg, of Classified W/ 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 D% 0% 55% 45% 0% TOTAL DISTRIBUTION $4,224,682 TREATMENT PLANT Salaries & 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% SS% G% 45% 0% Uniforms - Clothing $2,500 Plant In Service 9% 2% 74% 15% 0% Uniforms -Other $500 Plant In Service 9% 2% 74% 15% OV. Technical $22,000 Peaking Month Use 0% 55% 0% 45% 0% Chemicals $220,000 Utilities W. 0% 0% 100% 0% Prepared by HEC Page 1 of 2 140136 Mahal 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 Ill 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 $15,000 Plant In Service 9% 2% 74% 15% 0% Local $5,600 Customers 100% 0% 0% 0% 0% Long Distance $10 Customers 100% 0% 0% 0% 0% Cellular $500 Customers t00% 0% 0% 0% 0% Computers $2,500 Customers 100% 0% 0% 0% 0% Postage $3,000 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% 5S% 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 S, Laboratory $19,400 Avg. of Classified 0% 0% 0% 0% 100% Capital Outlay $2,226,690 Plant In Service 9% 2% 74% 15% 0% Debt Service $436,211 Peaking Month Use 0% 0% 55% 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 D% 0% 0% 0% 100% Office $4,550 Customers 100% 0% 0% 0% 0% Small Tools $200 Peaking Month Use 0% 55% 0% 45% 0% Uniforms -Clothing $200 Plant In Service 9% 2% 74% 15% 0% Uniforms -Other $125 Plant In Service 9% 2% 74% IS% 0% Technical $800 Peaking Month Use 0% 55% 0% 45% 0% Meetings $100 Customers 100% 0% 0% 0% 0% Books & Periodicals $100 Customers 100% 0% 0% 0% 0% Fleet Maintenance $270 Peaking Month Use 0% 55% 0% 45% 0% Fuel $150 Peaking Month Use 0% 55V 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 $lob 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% 55% 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% IDO% 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 $10,238,238 $1,382,804 $391,007 $3,901,763 $2,102,194 $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% Saone: HEC. Juno [11 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 Model Final 3/15/2016 06 d L V i n 0 E E O V Y (n a a t0 i V) lu a 7 Y m a a f6 0 to ,q `•I. 0 a o u Q o � u 0) O O m tf) rn m 0 (O O tfi 00 O rr• to m m h m tt} 0) O 00 ,1 m 00 m m d' �t 0 h d• 't IH .-i c-i 00 m m t\ O a N O m m m m m W 'd' d' Lo d' h N ct Ln 00 tO It 0) Ct O Ci O d' tit tf) c-i' 00 tft (::: 0) 00 l6 tf) tt5 06 N' l6 01 r- O N tD m N <-i V} to ri m Ln 00 60 m N w m O O U) 00 d' 00 O O> ih tr4 V). ih V} V). V} N N ti) 00 N c-i .-i h m V} 00 r4 V} �' V} (3) O N in' N i/)' tft i-i m VY th V} trf ro i-h irn in O O O m 0 h O to tf) a) O O O rh tf) 00 m O O m N o V�- 0 00 r-i tip 0) tr> �t oo rq V'� {h V} IZr 1-1 00 H V)- if)- to 00 Ln lz m G r; `3� 0 tc N d� C�. cl m m N tt5 tit m tf) r-I n 00 N 0) m O 0 ri c-I tf} i.7} N to c-4 m 0 h tf) 00 ri th VL . <i N -1 Ln h t0 00 if? O O 0 0 tit w 0 0 0 14 O N 0 0 0 0 0 h m N m a ih O VT V)• m co V} V). V} N to 00 d' ih V} tf} V-1 m m CP to t ct 0) 1-1 ri m h w 7 N r^ r" N tt1 h O tt) h O d' m H i H to (N 00 00 dr m <i w 00 a) V} to t0 h O tf) V' ct V} t1} in. tNh VN)• 0 0 O O O O m O N It tr) O O a 0 0) 0 0 0 ct Q) 0 V} th V). V} ih V). m V} w m O V} th V? V'T N V} ih V} m co N o? m N to o N ct U! N 07 l6 m rl m ce rlj O N tf). -Li i). N Ln th O O m O 0 0 0 0 0 Ln O to 0 w O O a 0 0 a 0 to O m ih V). V} th V). V). d' V} C1' ih 0) V} V} V} V? V} V'. V), M N d rt O O OO O to tt) tit ui 0 rn m iNi� v as 000 if} t!} V? 0 0 0 0 0 0 0 0 0 o 1.11 1.11 o o 1.11 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O o 0 O O r, O o a to O O N Lnh N O a h 0 i-I r-i c-i c-I ci 0 0 0 0 I.R o 0 o 0o 0 0 � o cco 0 0 Ln Ln O N O N c-1 c-i 00 O CD Ln r1i ci O C,} W C O � C c 'I J V a � N lL L Q L C a 0 i S CU cO a .� y N c O O N O. a Ln Q 0 a 0 0 0 c o2S cz w a o6 o — c ai a — F c o U_A 6 Vi to (6 iO c� 1 G •p (6 f6 �- l'6 ao a ro 0 [a� E a s Y _t_n a a> > -— T Y M u G E .� ZS +-' '� ,U u U ,O .v a N 0- U v Z YO 0, QI -� ii. to Q _c VI .Q I - to N N a m ; - U > 'S C2 a i p 0 �S V) cn � fa) to to 0 m ui f— 0 I to Tab|eA-16 City ofAshland Water Rate Study Number ofBilling Meters %of Customer 3/4" 90.1% 7,814 6,723 444 332 179 19 117 1'' 5.9% 509 256 68 108 61 16 O 1.5" 1.9% 167 11 51 64 35 6 O 2" 1.7% 145 3 35 45 48 ZI O 3" 0.296 21 O 4 4 7 6 O 4" 0296 14 O 4 2 2 G 0 6" 0.8% 2 O U U l 1 0 8" 0.0% 1 O D O 0 1 O Total 100.0% 8,673 6,993 606 555 325 77 117 %ofTotal 100% 81% 7% 696 4% 1% 1% Source: City ofAshland. meters Prepared byHsC 14O136Model Final 3/15/aO16 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 Ian 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 1" 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 2401 2,227 2,316 3,()80 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 21. Residential Sic 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 MF 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 8,906 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 30753 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 1D,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 ol'Ashland and NEC. use by size 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 of Cumulative This Block of pmau|e Cumulative oU|, Use ufBills Bills Passing Percent Water Block oiUiou Bills through Stopping in Stopping in Through Cumulative Cumulative Customer Limit Units Block Block Block Block Billed Usage Billed Usage Master Metered Zero Use 164 4,920 o n o o 0% Tier aou x'n/z 4,/56 4078*6 40786* e05'200 1,213'066 ss% Tier 1,000 z'szs 2,68: 1'221,7*5 1,629,611 159,000 1,788'*11 e7% Tier 2,500 zsz 159 200,e41 1,8*0,552 z\son 1,848'052 z00% Tier ` 2,500 7 7 22'156 1,852'708 n 1,852'708 z00% Single Family Zero Use 1,660 ei*ao o 0 n o m% Tier 300 18,*99 54,970 3,204856 3,204,856 10,971,300 14,176,156 4/% Tier 1,000 30,748 36'571 16,592'584 1e'7e7,440 s'uaa'noo 25,620,440 oe% Tier 2,500 5'148 5,823 7,328,/80 27,126,220 1,6e7'500 28,813'720 ss% Tier > 2,500 *r* 675 2,740'e88 29,867,208 o 29'867,208 zoom Total 56,630 29,867,208 Source: City of Ashland and HEC. smaller bill tab Table A-19 City mAshland Water Rate Study Bill Tabulation for Rate Design - Residential 'Summer Total Use to Total Use of Cumulative This Block of Potable Cumulative aU|s Use ofBills Bills Passing Percent xvate, Block Billing Bills through Stopping in Stopping in Through Cumulative Cumulative Customer Limit Units Block Block Block 0uok Billed Usage Billed Usage Master Metered Zero Use ss 2,460 n o n u ou Tier aoo 481 2,395 g/'eea e7'e68 574,200 672,168 41% Tier 1,000 1,454 1'914 usz'yso ysqess 464000 1,3e0,966 us% Tier z'soo 428 4*0 584,380 1,515,34* uo'000 1,5e5'346 yo% Tier a'000 zs sz 6/'452 1,582'798 32'400 1,615'198 sn% Tiers / a'son y y 47'668 1,630,466 o 1,630,466 z00% Tum| 2,460 1,630,466 Single Family Zero Use 543 28,315 o o o o n% Tier aoo 4,704 27,772 7e4,582 7e4,582 6,920,400 7,714,9e2 24% Tier 1,000 11,461 zs'oau 6,951,500 7,746'082 11,607,000 19,353'082 az% Tier 2,500 8'e41 11,607 14,060,33/ 21'806.419 s'sss'000 28'471,41e oe% Tier a'*oo 1,684 2'666 4,966'874 26'/73'293 a'sas'zoo 30'308,493 es% Tier , a'soo eox yoz 5'185'537 31,958,830 o 31'e58,e30 n00% Total 28,315 31,958,830 Source: City of Ashland and xEC. =tab Prepared by HEC Bill Tab Analysis Final 3/15/2016 �r � d C v V � N a u 1- N .1-6, lD O �0 O' 00 N tIi Ct cc N c-i O N 00 I- w Ili v0°i � m' ni .- m i in m m w w CO 00 w CO M ci w ci h V 0 0 14 Ol 0) C)lc� O lll�O 0 rn 01 I- to w e-1 CD O r• r�-1 CDN tD m 0) w I�� cr ct I-i tD 0.0 0 ,.. m ri Di ri N m ri o ti m m ni 0 m w w � tLL a N U N O N w Dl to 00 Dt Ih _ m Q O h hice+ M em-1 IMn m v co rci co m Lo d~' O N dam' NN h v ff W O c-i O m r` O � N m N M � u" N O N w N 00 h N 0) U N d' to C O �D Dorr 01 C C h N 0) Lr Ln O 00 ON Oi ro h r W O lz Om V m m h Ln H rn-i r: .-; Di o m d' 00 N N N N d a iD tD N co N O d' 00 N l0 t/1 N O �-+ N tD 00 In N 01 rl m m r. N a -I' M y m tD 0) N d' r, to .-im m LO h M W 00 r` ci t!1 h 0o c-i M N N a O O U o 0 � m M m m s U o O m L O o n v O C N N N N m N y v O o O o U Q O O C C O ri ci e-i i-1 m O O O O O O m m O O m m 0 m w a a ry `a a v v v .Q p N M 03 ap N z u0 c a tJ �j N in i- Q TaNeA-21 City ufAshland Water Rate Study Bill Tabulation for Rate Design ' Non -Residential Current Cumulative Total Use of Cumulative Total Use to Potable Bills Bills Use ofBills This Block of Percent Water B|mt Billing through Stopping in Stopping in Bills Passing Cumulative Cumulative Customer Limit Units Block Block Block Through Block Billed Usage Billed Usage Irrigation O 0 Zero Use U 1,700 Tier 50,000 2,327 Tier > 50,000 53 Total 4,080 Commercial Zero Use O 519 Tier 50\000 6'774 Tier > 50,000 13 Total 7,306 Institutional Zero Use O 121 Tier 50,000 887 Tier > 50\000 24 Total 1,032 Source: City of Ashland and HEC. 0 O 0 4,080 O 0 2'380 1[i]14`213 10,314,2I3 53 4'422,250 14,736,463 14,736,463 7,]06 0 0 6,787 16,932,837 16,932,07 13 781,010 17,713,847 17,713,847 1,032 O 0 911 13,388 13,388 24 3,012,632 3,026,020 3,026,020 O O O O 2,650,00 12,964,2I3 O U 650,00 17�82,07 O 17'7I3'847 0 0 1,200,000 1,213'388 U 3,026,020 nonres bill tab Prepared byxEC Bill Tab Analysis Final $15/2016 TabbA-22 City of Ashland Water Rate Study Bill Tabulation for Rate Design - Commercial Proposed Cumulative Total Use of Cumulative Total Use m Potable Bills Bills Use ufBills This Block of Percent Water Block Billing through Stopping in Stopping in Bills Passing Cumulative Cumulative Customer Limit Unity Block Block Block Through Block Billed Usage Billed Usage Commercial <2" Zero Use 450 6'585 D O O O 0% Tier 2,500 4,851 6'126 3,074'096 3,074,096 3^187'500 6.261,596 61% Tier > Z'SOD 1,275 1'27S 7'I09'273 I0,283'369 O 10'I83,369 100Y6 6'586 10,283,369 Commercial 2+" Zero Use 59 720 U O U 0 0% Tier 15,000 472 661 198E\468 1,989,458 2,835'800 4,824'468 65% Tier > 15,000 189 189 E`441,010 7,430\478 U 7,430,478 100% 720 7,430,478 Source: City of Ashland and HEC. comm tab Prepared uvxcc Bill Tab Analysis Fina|a/1s/2o1s w I CA D w tw m Sty CU E = H u co "o "0 "'o 0 0 0 0 0 0 0-11 101 04 1 ol10 C* m ::I* cc r" 0 M r1l CD 4100 0 r" 0 r" I-, fy� rl- co m m co 1--i co Ili r"O i N m It 00 r-i lD Ln N m o o o 4CU 0 0 0 0 0 0 0 0 0 Q, Ln Ln Ln QL 0 r_ .0 —0 E E 4- 0 E 4� C) tw 0 u u L- cu E E 0 u ti Q. 0 L. CL 41 m M � u CL u < L) < 4- m a) 0 E :3 0 B :�- Z,- V) :t Ln u LU 0 D (U u .1 6111 0) Ln m ro .1 10 -�o 0 -i Ln k.0 LD 0 0 0 0 ,-i , I I-i Ln Q0 tD m 00 LO h U. 00 rn co u CL) > LD 00 .�p 0) t.D to Ul) E rq CD N :3 N00 ri o o 0 0 Ln 0 0 r-j Ln co Q) + v N cL) rL -Fz - Flo 11 m E E E 0 E E 0 to u u m u w tw co47 O bA 0) a-+ fg U N E O y y. U 41 N O7 tY 1 0) m f0 w m 0 in N LA r6 Q' d u w O p N N lD 00 00 CD Ln M N — Ln -� LD r 4 r-i co O lD r-i N In lD In N Ln Ol I:t N r, m O m m w M N tD m O Ln lzr O U') o r-i oo h Ln co cf r rf ri F �6 r I ri & 0i o6 00 to m w r-i o dt w r rn m M d- o in m w N ri m O d• Ln Lf o Ll o r cri cr Lri in Lf CD N 00 r N ri N N ri ri d w O r w Ln O r N w M 00 00 N I-i r- Ln in t-i to O �* Ln 1-1 r ; O Izzt m 00 rn Ln O Ln 00 a1 N t0 l0 r` a N O :F ct d m * I d iT ri a) w Ln ri O N M N d ri Q, r O N M N O N O r CD M ct ri r I N w N 00 r-I N c- N N 4� i 1 rq w N r oo to 01 00 -1 00 m N co O L l- m O O N m to c i Ol N Ln 00 U 0) c-1 ri 0o O m N O cP Co N ci F Lfi r cy r 0o c.0 ai o 0 Ln r-i w N It m m w 00 w to u m m N r` w to O to 00 N ri C O O c-1 O r- l0 tf) r- rf Cf '- rl N Qt r-i N c i M M Ln c L ri ri = r. H w O Ct 00 N Ln to w H w r. N Ol N r-i N w N 00 N H jy m 00 ri tD N 'lt N O Ct tD ri O to w N O w m m 00 M N � ww m ri Ln rN to dr N N 00 C of o r` �6 cr r; 1 1 w N 00 -i N c--i M M H ii N N tt to m N 0 00 N N of m Ln CT m rh 0 e-i 0o Ct m N m N tD m m m N N ri N M N 00 O O Ln r-i 00 r w to H Ln 00 Ct 00 O O 00 lD m O O m 0 -zr N w H iT 00 N N Ln m a N 6 r- t0 ffI rvi O O cD r-i 00 t•i N -i N N "I ri 00 O 00 m r- 6t In d N -1 00 N Ql r-r r r 00 t t' Ol to ct m to r M to to �t w N N ct l0 i.n rn Lr Lr d rn M �tt c» O rm O 00 m I�t r- m to N N N 0) ,Ct ri Ill r. Ln 00 H O N N 0) rri cr N cr r� iri fh rf7 00 00 CD ri 00 N H ri H ri ri f6 L Q) L Q) y 41 0) f0 N + cr. V N— O N C 44 i-i- LL 4J y i OJ L N U F-+ — m bD = 07 Q O O crr E E+ O 00 Y— in -0 _ E E a � � � C Vt O U n .41 M iY V) Z CO? to1-0 I—O M Q 0 0 v u 0 m a CY) N rq O o 0 0 0 0 0 0 Ln Ln N I-i ro CD Ln IZT r1l d C5 6 6 N M N�4 uo- 0 u =3 0 > u CD Ot E QD Ln v-4 li N N -i rn 0 cs C5 0 C; C; C; a 0 CD eq bon CL 0 n 1-0 10 A10-01 -0 CL Ln 0 1 N N�l M m = 0 00 C"i H 6 C; C5 6 C5 6 -W r-i M ryi r� r4 I cu - CD bn CU E o -C U OJ o0 0 0 0m .2 00 T� CY) Ln NN m M N(.0 'a' -0 1�� CN �t C:5 C5 u M W D w uj t u CL m 0 m m a, r4 U 0) L (u ri > m U) m C: >, (3j (3) 0 0 0 0 0 0 CU CU 0 o 0 0 oLn ra -0 O lzt Izj- 00 co 0 r- 0) C) A4E 1-4 0 4, S2 r U) > -- C: o o v 2- CL -0 >� o �t r1l 0 Ln bD Q) +, E 0 0 u) Ln o m 2= 0 0 tio (A E —0 0 Ou E u LU x M in 0 (1) 4- c U -, 2': u 4J 41 0 m u CL C W 4- .- — �o o .0 (1) 41 4 1 5 - 41 W 0 4- 41 (2) (3) -0 (3) -F �Llj — M - -F -�a u 'FJ — z CL [- 0 + aW v Nc U w r CU M 0 w u M C: m .0 z 0 U a, w CC 0 u LO = r4 CA .0 a) U- 0 c 0 C) U 0 < aj E bD 4�1 a- . I E E a) 4- cl 0 E 0 E E tn 41 u Ln Qj u :2 (A - o o m LA Ln 0) in 0 z u u Lcn) Lf) Ln 1-1 O lY O d li o e-+ l0 N 00 O O 00 00 O'J cl LD ro ci -zr lD N 00 00 lD ct Lri N 00 h Ln O LL uro d r N LO ON O v ,zr�° Lo Lr) D O N L a Ln h O h00 cM-I lO h LL LO O en 00 I- 00 O m Q0 ah1 CO Ln M N O M lD N 00 en h O h hc-i 61 O Qs l`no 0 LO lD Ln c-i N O M O N 00 00 m Lq h 00 LO h m .- cD O h N (0) 00 h V N m LO rJ4 O N tD N 00 Aj 3 2� y OO N t° f6 m LL Q1 = v �a ago O CO lD h N Ln Lnn 000 W m L 0 O h fl M N ei N d� M rn m h 01 C1' N O rl Ln n r, zr m ri 00 rn m M N m N d 7 O Ln N M r-i M 01 O W co 0 M D r m N a, N O tom' lD rn Mw N r-i Oh W (DD LMn w m 00 N Ln dt 14 d' O 00 Ln 1-1 N N Ln lc M N 00 LG O t`h to 00 fli rt M N e-1 It Om rq 1-1 ci rrl N r-1 r-i M d' O a1 m m r-ii 0 0 rn Ln lD m N h O 0 h CD d' 00 N r rn N w d' ct I:P rl 0000 Ol m M M m rn N Ln LD N LO N N N a) N LD M Ln LD N m h at O' t` CD Ct 00 14 ri M N Ln Ln 01 m ri N 00 N Q0 rlrn Ln Ln m � a o r-+ 0 o cr 06 ai k lD 00 Ln m M rl d Ln N N Ln N O h� lD rf' 00 r q t•-1 m .Y c E E t m � V N C cu v a C z N O m 2 ca w E E o m OF E E N aO n z i-° Ot N N 00 rV 00 m m h 01 lD CD N h cl Ql 00 C7 O r-i N 01 LD N 0) 00 1-4 �t r-i Ln m Ln a r+ lzr l`VD m m n -ii l`nO w m m 00 h Ln Ln N LD 01 ar O r� O 00 00 LD N LD d' M m �+ a m Ln O N h rI Ln O N M M LD N h N O O m h m N M cr c-i 1 O1 LO N 00 h O0 rn -1 Ln m Ln o r-i O N m LO h h M Ln M m O at 00 CIO h r-i 0 O 00 r-I Q1 CO CD N 06 l0 LD m N tt m Ln d ri c-i m [T O Ln N m m OS Q: lD N lzz 01 ri Ln O M CD N rn r� ar, N rn LO h l0 M W O to Ln O r-i h 00 m m d' O M rl O Ln Ln a' M 1-1 O m Ln N N N N Ln N 07 u O` o m a v w p E E a+ mN = -� V N .��. 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V)- L,y� ih AA tJ N m h. Ln Ln :1- O � Lo --1 O r-I 40 O O L M Y cu L -1. L b as O U r6 w - L b4 V N s � — tE co tT5 C.i � -1 -F' L L o O � vs a C 43 E N E '.�, O 'N H 0 Ln E E 45i - 0 as o u o u c '" ta- 0 E E 0 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 MD 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= b/a d (below) e= d*(b/32) f= a/total a g= b/total b h= e/total e 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" 842,679 1,311,138 1.56 2.00 84,453 8% 8% 7% Commercial 2" or larger 572,439 815,422 1.42 1.83 48,085 5% 5% 4% Institutional 522,097 734,827 1.41 2.17 51,378 5% 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'I. COMMA. 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 Ml 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 Month Potable Water Only 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 % of Total 51% 73% Source: City of Ashland. irr peak Prepared by HEC 140136 Model Final 3/15/2016 LO tia 7D 0) tA -0 m zr C:l 1'- m M 0 ., In �zr I0t N N N N C, if). 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O H 0 O O O O O O O O O O O O O O O 41 O m m m m c» m m m m m m m m m m V} N N N N N N N N N N N N N N N in- in• 'tn- V} V� 'cn' ii 'cn. ir} ir} Vs. i.i} ir} {%) i.n• 0 0 a o 0 0 0 0 o 0 0 0 0 0 0 o W NO O CD w 0oO 00 N 't w o o Fj 'tw0 o =NU' o 0 v 0 co Ln L0 N 0 N ri m c i.i v 0 m 0 ti ,w RESOLUTION NO. .92­�� A RESOLUTION ADOPTING A SENIOR CITIZEN UTILITY DISCOUNT PURSUANT TO SECTIONS 14.04.030, 14.08.035 AND 14.16.030 OF THE ASHLAND 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"'. L �L - not exceed the poverty guidelines of the Federal Community Services Administration, or fifteen percent (15%) twenty percent for waters::;and electric "A"Aa sewer bills if the applicant's household income does not exceed on'e­`'Rundred twenty-five percent of the poverty guidelines of the Federal Community Services Administration. in speeial hardsh-ip eases/ a eemmitteeee eei tirie (2) Geuneil members and the Senier Pregra Direeter, iffay grant exeeptiens te the ferego±nq ineeme li3FAtatie where the eireufastanees, jus-ify sueh emeeptiens. 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. fran�klin City Recorder SIGNED and APPROVED this day of May, 1992. 6Catherine M. Golden Mayor tq�'k 71P6o,Aarm: ) thul Itolte- City Attorney (d:\councit\resos92\senutiL.dsc) AshlandCity of Electric System Planning Study Renewable Energy Discussion Presented by: Martin Stoddard, P.E. Stoddard Power Systems, LLC Renewable Energy Discussion Stoddard Power Systemy.LLC isasmall, vetcran- owned'0regnn-based,consulting firm with consulting engineers having many years of experience providing services mgovernment, municipal utilities, PUD, cooperatives, etc. Currently, SPS isperforming a1Ofea Electrical System Master Plan study. Renewable Energy Discussion ° The overall project progress is about 10% completed. " Anew GIS-basedelectrical system mod m developed as part of this study. `=~~~ " The typical study scope focuses on electrical forecast, ana|ysis, and aaystern improvement plan. For this study vveare also addressing: " Opportunities and barriers for adding renewable energy resources, ^ An assessment of the Citv'a readiness to accommodate high adoption ofElectric Vehicles (EVa) and fuel -switching (natural gas reduction) ° Recommendations for integration of the Citv`s Climate and Energy Action Plan /CEApi and looking at impacts on electrical infrastructure. Feeder Number, Name Oak Knoll Sub --5R~o�y* --ono,mr66 _,Rm,sMM. Ashland Sub --^20=o~*~ --^mm.,Mai. _��Mhad --^mm.uNevada M.U"m*v"^ --m3006,,a."* — --M3009,M..I.., � *3012.`x^.~* | --*om`'Wiw~� m Renewable Energy Discussion 4 Summer Day Load Profile I "r-A, Renewable Energy Discussion q�p IiiiiiiiIIIIIIIII Winter Mean Low TemperAture City of Ashland Population Year temperature(P) Year Population Percent change 2013 119,2 2013 20,295 2014 2617 2014 20,340 0.22% 2015 29,1 2015 20,405 0,32% 2016 215,5 2016 20,620 1 .05% 2017 25,9 2017 20,700 0.39% 2018 215,7 2018 20,815 0.56% 20419 2812 1 2019 20,960 0.70% 2020 26„5 2020 21,105 0.69% 2021 28,9 2021 21,554 2.13% 2022 24„4 2022 21,642 0.41% 10 0.72% Winter Day Load Profile . . . . . . . . . . . I I � 1111 pq 1111111 ii 11 1 lip liq I I I 9 • 11 TM, Ashland Substation Monthly Peak vs. Substation Trainformer kVA , qlm�ipp Mth Ave Substation Monthly Peak vs. Substation Tranformer kVA azow IN a` Renewable Energy Discussion Peak Power and Total Energy Year Peak (kW) Energy (kWh) 2013 40,650 19,636,870 (Noi 2014 38,885 173,668,763 2015 38,940 173,668,763 2016 39,940 205,816,285 2017 38,505 178,273,030 2018 38,700 173,236,580 2019 37,605 172,884,771 2020 38,195 170,324,005 2021 45.920 175,664,178 2022 40,670 165,933,175 Note 1: Bad data ("0") for 11 months in 2013, Oak Knoll Substation Monthly Peak vs. Substation Tranformor WA E 41 � 11� ii� � NMI ° Initiated in 2011, the Citv's CEAPvisiom is to reduce Greenhouse Gas emissions and improve the resilience to the environment, infrastructure, and people from future impacts of dinnede change. ^ Goal: °Reduce overall Ashland community greenhouse gas emissions by 8% on average every year to2050 ° Attain carbon neutrality in City operations by 2030' and reduce fossil fuel consumption by 5O%6v2O3Oand 10O%6v2O5] ^ Be ready for projected dimm±a changes ° The focus of the electric department planning study is to attempt to prepare the electrical infrastructure for future demands and align system planning with the Citv`s CEAPto the extent possible. Renewable Energy Discussion The City's path. Transition to clean energy • Natural gas ban or Fuel switching policy ^ Increase renewable energy portfolio • Electric Vehicles 9 Maximize water and energy efficiency and reuse " Support climate -friendly land use and management ^ Reduce consumption ofcarbon-intensive goods and services ° Inform and work with residents, organizations. and government ° Lead byexample The City's vision is a collaborative effort over a long period. 8 Transition to clean energy ^ nehawuu|vsnogy ° Ashland becomes the third Oregon city to commit hVdeveloping apolicy totransition new homes off fossil fuels. ° Once passed,appliances for heating nrcooking would have to be all -electric for new home construction. °Dependingmmthe amount and the timeline of new residential development, this policy could have a big impact on the City's electric systems. " Ashland's electric grid capacity may need to be upgraded tosupport the additional loads that come from natural gas reduction and future growth in the number ofelectric vehicles. y CEAP' Goal --- Transition to clean energy Renewable Energy Portfolio/Potentials Hydro Power Other Sources: Electric Vehicles Microgrid Biomass, Biogas, Geothermal Renewable Energy Discussion 10 An,,,W Re,11-able E,ic,,qy InstalWA in AsIkod Slow 2000 , ""'j" . . .......... i" Solar Energy - CorTi'Mercial & Residential PV • Installed solar energy in Ashland since 2000. • According to the latest information available: • Total installed commercial solar is about 1.28 MW, • Total installed residential solar = 200000 is about 3.82 MW. • Installed total is about 5.1 MW. The expected Summer peak output is about 3.8 to 4 MW assuming fixed axis stands, modern PV panel ratings, and Ashland's solar irradiance p rofi I e. Renewable Energy Discussion 150000 MM Im 2000 21001 2O02 20D) 2001 2005 2005 200 2008 2O69 201U 2011 2,12 2013 2014 2915 2016 2017 • For solar energy (or other renewables) <= 25 kW. No barriers or issues in general as long as they meet NEC and the City's metering and installation requirements. • For solar energy (or other renewables) > 25 kW and <= 200 kW. Depends on the location and total installed capacity versus available capacity. This requires prior consultation and approval by the Electric Department and generally required engineering studies. • Many potential renewable energy grants at Federal and State levels. Renewable Energy Discussion 0 M • `Large' is relative to where the generation is connected. For distribution level connections, large is >200 M • BPA's standard classifies as small generation when a single or combined generating capacity is greater than 0.2 MW and equal to or less than 20 MW. This is primarily a function of transmission connection. • Post-2028 BPA contracts under discussion with the City would allow the City to develop single combined generation of up to 5 MW. However, the City's electric infrastructure is distribution only. The City has no transmission resource. • This requires Feasibility, Impact, and Facility studies on the feeder levels and substation levels. Renewable Energy Discussion Solar Energy — "Large" P'V' Integration • Example: —2016, a 10 MW solar power W"i,� fl-W generation facility on the Imperatrice property was under discussion. • This aligns well with CEAP goals. - Considerations: Above the '5 MW' limit for a single combined development which requires a special interconnection application to be approved. To interconnect with existing distribution feeders, the solar plant output cannot be greater than the load, to avoid reverse power flow and protection issues. Renewable Energy Discussion "low Solar Energy — " PV Integration • Considerations (Cont.): • Daytime peak load for feeder A2002 is around 1 MW to 2 MW. • Daytime peak load for M3006 is around 0.5 MW to 1.5 W. • Result was a need to interconnect with multiple backbone feeder and curtailment functions reducing net production. • New substation or dedicated feeder could be considered but adds substantial cost. Renewable Energy Discussion Q �J , "LargiE., Daily Power Profile Daily Power ProNe Daily Power Profile Daily Power Profile pn,Wg froMMhhnnnunn, Alay 15 2016 sun nnnxun, h9�psdnouunn, Aug 192016 1,111 rMillVrcuournu, 8eP 5 2016 IN hn&a^u�'& .ftnnnunnwa, Dec 1g 2016 Ashland 9ubsalon Ashland 5ubsatian Ashland yubsation Axtilaml 9ubsallon will, 1 MW PV ith 1 MW PV With 1 MW PV Vith 1 MW PV With 5 MW PV ith 5 MW PV r Viih 5 MW PV .. ith 5 MW PV �r„ w y V ,. Full 10 MW PV ilh to MW PV ith 10 MW PV ith 10 MW PV Renewable Energy Discussion • Using a 5 MW solar farm as an example using Ashland's weather data: • DC capacity 5.6 MW • AC capacity 4.8 MW • DC/AC ratio 1.17 • Total module area 32,000 M2 or 7.9 acres • 1st Year AC energy 7052 MWh • LCOE 12.03 cents/kWh nominal • Total installed cost -$11 M, PV system only (cost subject to many other factors) • Acre/MW (1 sl Year) 1.65 • Acre/1,000 MWh 0 sl Year) 1,12 • $/Acre $1.56M Average kWh usage for 1,500 sq, ft home - 37 kWh per day, 13,500 kWh per year => —66 homes per acre Renewable Energy Discussion ims * Reeder Gulch Hydroelectric (RGH), Hosler Dam * 845 kVA generator, limited by penstock and water demand * —250 kW power output continuously during normal conditions * —0.56% of the total peak consumption (-45 MW) - — 1 % to 4% of the total consumption during non -peak hours RGH M ey"', V Renewable Energy Discussion 1�, P,o 1;, - 11,, - u 1� Sa t" �_, • Biomass: • Potential biomass plant expansion in the Rogue Valley • Potential biomass cogen plant at Southern Oregon University. • Biogas: • Methane gas from food waste, yard waste and manure that can be used to generate electricity or as a vehicle fuel. • Geothermal: • Geothermal for power generation (e.g., geothermal plant in OF campus, about 2 MW) • Direct use for heating • Wind: • County -level collaborative effort Renewable Energy Discussion • An important part of the City's CEAP. • Electric Vehicle Incentive Program: • According to Oregon.gov, the total number of registered electric vehicles in Oregon by July 2023 is 74,427. • The City of Ashland (Zip Code: 97520) has about 900 by July 2023. Renewable Energy Discussion • Based on the current growth speed, expect close to 1000 EVs increase in the next 4 to 5 years in Ashland, and 3000 to 5000 EVs in the next 10 years (affected by regulating & incentive policies and supply chain). EV Increase Total EV 160 1000 190 900 800 120 700 100 600 80 Soo 60 400 300 40 2 CX) 20 100 11017 11013 1101s 1101? 1 "?0171 d02710>3'00x `009 `01'1 101S 101, -?01, '011 10�3 Note: The above statistic data stops in July 2023 Renewable Energy Discussion 21 * Currently 16 City -owned, Level 2 chargers [Public] * 24 Tesla superchargers [Public] * 11 City -owned Level 2 chargers at the service center * Plan to add 20 more City -owned Level 2 public chargers in 2024 * Plan to add six more Level 2 and two Level 3 chargers at the service center ax Q . . ......... Renewable Energy Discussion 22 .......... I• - Increased EV brings the following challenges • Increase power demand. EV charging requires a significant amount of electricity, especially during peak charging periods. This increased demand can strain the existing infrastructure of the electricity system, leading to potential issues such as voltage fluctuations and load imbalances. • Potential equipment overload. Simultaneous charging during peak times can overload local transformers and distribution circuits, which can result in power outages or require expensive infrastructure upgrades to meet the growing demand. • Cost from - Infrastructure upgrade Distribution transformers have to be sized with future EV additions. However, City has to cover the transformer no-load losses - Technology upgrade for smart charging based on demand response Renewable Energy Discussion • It increases the system peak when using uncontrolled charging. • Smart charging • Delayed charging • Controlled charging • Demand response • Using a dynamic rate structure to reshape the load curve (Peak Shift or Shaving) Renewable Energy Discussion (a) Uncontrolled charging (b) Delayed charging Ihi hale of 6r lhl 23 24 " For 1000 EVs, assuming � ° Each has a charger ° 70% are Level 1' ~1.5 kW ° 3096 are Level 2, -~1 5 kW * Uncontrolled charging ° A diversity factor of 2.5 (40% of them are in use concurrently) ° The estimated total hVV increase during the charging hours imabout 2.2 MVV ^ Without diversifying the total estimated peal is about 5.5 MVV Renewable Energy Discussion Renewable Energy Discussion a-r Backup miles/hourHome 10-75 Work /Hotel /Public moo*ho", chargers 120-1400 Fleets / Dealer /Hwy miles/hour service /Supercharger zs ^ Besides the benefits ofgreenhouse gas emission reduction, increased renewable portfolios can result in some level of instability, reduced power quality, and system operation challenges. ~ Infrastructure upgrades may beneeded onvarious levels: ° Substation " Feeder ° Distribution transformers ^ Communication and situation awareness (i.e., SCADAJ ° The City may want toconsider additional efforts on: ° Public education (e.g. charging times that have most impact on electric infrastructure) • Dynamic rate structure Renewable Energy Discussion Martin Stoddard martinstoodard@otoddardpovvercom The Water ­Di - visio - o consists of Supply, Treatment, Distribution it at��s�;,,,Divisi_o-o Conservation. The core of the water system includes Hosler Dam and Reeder Reservoir, a water treatment plant, over 119 miles of distribution piping, six booster pump - stations, telemetry equipment, 32 pressure relief valves, 1,281 hydrants and four potable water storage reservoirs providing 6.7 million gallons of storage Regulatory: -The Oregon Health Authority provides regulatory oversite for the treatment and distribution of potable water -The Federal Energy Regulatory Commission provides regulatory oversite on Hosler Dam as the City is a generator of hydroelectric power Water Utility • Projected Rate Increase FY24/25 - 10% Single Family Home Bill for 1,000 cubic feet M0 Fiat Charges r;/,, Use Charges $100 $90,31 $0 1=00 M101"WR N8990A CURRENT Jan-24 Jul-24 Water Treatment Plant Project • Currently at 90% design • Design Complete by end of 2023 • Bid in Winter/Spring of 2024 • Construction Start Summer 2024 • Environmental Protection Agency - 100% funding . $75 Million Maximum Award • Next Steps • Update Borrowing Resolution - January 2024 • Finalize Master Bond Declaration • Close Loan with EPA - April/May 2024 • Grant Funding Opportunities Sumniiryof0pinion of Probable Construction Cost High Range Low Range r +15% WTP Construction Costs ' .1o% $ 70,424,000 61,238,000 $ 55,115,000 SurnrnM of Opinion of Probable Cmtructdon Cost High Range Low Range +15% Solar Array Construction Costs -101/0 2,458,000 $ 2,137,000 1,924,000 summary of Opdnion of Probabic, Construction Cost High Range tow Range +15% BESS Construction Costs -IN 3,063,000 $ 2,663,000 2,397,000 Last Water Utility Cost of Service Completed in 2016 • Creates a Defensible Rate Structure • Equitable over Customer Classes Recommend Updating • Equity and Progressive Structure (Commodity Charge) Wastewater The Wastewater Division consists of collection and treatment of .. . ..... . . . ............... . .. . . . . .. .... . .. .. . ....... .................. . ........... .......... ..... . ..... . - wastewater. The core of the system includes 112.9 miles of collection system piping, 2,245 manholes, six (6) lift stations, telemetry equipment and a wastewater treatment plant. Regulatory. •The City operates under a National Pollution Discharge Permit (NPDES) that is overseen by the Department of Environmental Quality (DEQ) Single-Fam/yHome Bill Impact The StorMwater Division consists Ofcollections with staff support included with the Street and Wastewater Divisions. The core Ofthe storm drain system includes l354miles ofstorm drainage pipe and culverts, 4`348inlets/catch basins, 990manholes, and 44Soutfo||s. The StormwOterconveyance andOU1faU system operateunder O Department 0fEnvironmental Quality (DEQ)MS4*permit, which regulates maintenance and inspection schedules inadditional 10 public outreach and education regarding ntorrnvvaterconveyance and treatment. Storm Drain Utility . Projected Rate Increases FY25 - 7% Single Family Residential Monthly Rate Affordability Analysis • Metrics - 6 to 10% of Monthly Median Income for utilities • Current Comprehensive Bill - 6.63% Utility Bill Affordability Analysis 2021 Median Household income $ 2% of Median Household Income Per Utility Last Update Utilities Monthly Rate %of Median income 2019 Street Utility Fee 9.56 0.18% 2021 Storm Drain Utility Fee $ 5.44 n loo/. 2019 Wastewater (average) $ 54.20 1.02% 2019 Water (average) $ 61.71 1.16% 2021 Electric (average) $ 76.88 1.459A 2021 Ashland AFN $ 65.00 1.23% 2022 Recology $ 22.67 0.43% N/A Natural Gas $ 56.00 1.06% Totals $ 351.46 6.63% • Metrics - 6 to 10% of Monthly Median income for utilities • Proposed Comprehensive Bill - 6.82% 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% ITotals $ 361.55 1 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) o"ec/td ii/nOctober2023Water Rate Analysis lys's zz Low Income Utility Assistance • Hansford Economic Review of the City's Senior Assistance Program • Recommendations • Update/Eliminate Age Threshold • Change Income Level Threshold • New Resolution(s) To Replace 92-22 • Update Ashland Municipal Code Section 14.02.015 QUESTIONS? IMMIMPI V/"=, I'll rprise FundDeputy PUMI< s I I Streets Division -at., DivIsi.p -.I.r Division SUP.rvl— (I FfE) Public W.'IM Dinette, (1 FTE) Cemetery Division I I Fleet Division I I Facilities [-nn,w—H ............... be Technician ���� Support Division Dana Smith From: K4ahaneBeny Sent Monday, December 4,2023329PIVI To: City Council Subject: RE: City Council Contact Form Submitted Hello Council — I wanted to address and clarify item #5 in the below comments. As you may know, our enterprise resource planning system (ERP), Tyler Munis, is undergoing a scheduled system upgrade, one that has been planned for months. This affects uh|hx billing, accounting, procurement, p|onnine/bui|ding, public works and courts, and is in effect today and tomorrow. We should be live again on Wednesday. As with all technology upgrades, we anticipate meaningful improvements and are hopeful that our residents will see and experience those improvements, and that our departments will also realize additional functionality with the new upgrade. As we move forward with the upgrade, we will continue to assess the system for reliability,occeasbi|ity, performance and other attributes that will best serve our overall operations. Any software changes, particularly at the ERP level, must take into consideration the collective needs ofthe city. We are close to being fully staffed in Utility Billing but as | have indicated previously, there is training arc that simply takesbme.VVehavekeptupvvkhour48-hourturnanounddmefornon-emergencyinquihes,andquiteoftenitis24- hours;vvehaveopenedupaLtheGroveonFridaysforin-peoonxervice;andsoon,vvearep|onningonopeningphone lines in the new year. We will not be publicizing that until we are certain we are able to. However, if anything comes up with your constituents, I wanted to let you know of our good efforts to this end. |fyouhoveanyquestionsp}easuneachout—best Mahone From: City ofAshland, Oregon <administradon@ash|and.or.us> Sent: Monday, December 4,2O231:3OPM To: City Council <cound|@ash|and.or.us>, Subject: City Council Contact Form Submitted [EXTERNAL SENDER] *** FORM FIELD DATA*** Full Name: Jeff Sharpe Subject: Electric Master Plan and IKA\0CREPgrant Message: Greetings Counselors, Happy you will be getting anupdate from Stoddard onthe City Master Plan this evening; I know they will be doing a great?job for?us. When SES considered responding to that project's RFP there were?several critical items I felt missing that?l would like to mention now. It is notable that the City has received a $lOD,OUOCREPPlanning Grant to explorelplan IMW City solar projects and the infrastructure to support them. All of the?items below could potentially be addressed in that plan. Thomas related that the grant project is being given to Stoddard, and so this might be an opportunity to help direct that project to the City's best interests. Suggestions- 1) Development ofa credible Integrated Resource Man (|KP) is crucial to moving our utility into the 21stcentury 2\ Exploration of our future 2025 BPA contract options and how they will?effect our? unique (non -IOU) position for local self-reliance? 3) Exploration of the Current BPA contract Take or Pay provisions and what the real financial effects might be, as well as rules being implemented that are not in our current cnntnact9(eg BoA'nWally Rogha|r's 200k\0 /transformer limit I negotiated in 202 0) 4) Consider the cost and benefits of establishing an Ashland Electric Board to help staff and the City make wise decisions as we seek safety,?sustainability and equity for our City 5) Consider the cost and benefits ofupgrading the utility billing system tohighlight the savings and impact ofCity renewable energy projects; as well as policy, incentive and possible financing services Ashland Electric could offer to help achieve City Goals 6) Quantify the vulnerabilities?of the current transmission system serving Ashland, and how we can best prepare for its failure 7\Explore the specific costs and benefits ofthe three 1K4VVsolar system types xxepresented when suggesting the 1-K4VVC8EPPlanning Grant. These include both before and behind the meter, with 3funding options (notably we already have investors interested in building each of these systems now) So sorry to hit you all with *** USER INFORMATION *** 3ubaorbedD:'1 SubschberUserNanne: SubschberEmai|: Rerno1eAddness:6G,241.7O.7G Aerno1eHoot:66.241.7D.76 RemoteUser: Dana Smith From Sent Monday, December 4,2O23g:38Ak4 To: City Council Subject: Water rates proposal [EXTERNAL SENDER] Hello Council, Please focus more onutility rate affordability inour city. Besides high rents, vvealso have relatively high utility rates which make the housing crunch even more burdensome on much of our community. There are many ways that lower income individuals and families could be helped when it comes to the utility bill: 1.Amore robust program ofsubsidies based onincome. 2.Lower the rates for smaller multifamily units. 3.Raise rates for large/mega large homes. 4. Look carefully at how we might phase our WTP project. We still have a functional WTP; we need to be sure that our dam and reservoir is in good shape; we should recognize the value of water conservation and make sure we provide adequate support for wisely reducing our per capita water consumption which will result in less $ and less greenhouse gas production from energy and materials used to treat and transport our water. Thank you, Larry Cooper Ashland _ Larry Dana Smith From: City of Ashland,regon<adminbtnation@ash|and,ocuo> Sent: Sunday, December 3,2O236:l7PK4 To: City Recorder; DorindaCottle Subject: Council Public Testimony Form Submitted [EXTERNAL SENDER] *** *** R}RK4FIELD DATA Full Name: John Engelhardt Meeting Date: Monday, Dec. 4, 2023 Type of Testimony: WRITTEN Written Testimony: Society ofSt. Vincent de Paul Utility Assistance Time Frame: Fiscal Year October 2O22'Septennber 2023 Purpose: To provide some context and insight into utility assistance we provide to residents of Ashland. Although one of our guiding principles is that no work of charity is foreign to the Society, the bulk of or work and expenditure involves helping people stay housed. This primarily means assisting people with rent or utilities. Last fiscal year 62% of our funds went to rent and 16% to utilities. Totals: We assisted 132 households with utility help, including customers of the City of Ashland, Avista, Pacific Power, Recology and City of Talent. Of those, 91 households were clients ofthe city ofAshland, or69Y6.Financially xxe paid the city ofAshland $22,143or6596ofour utility outlay. Demographics: Ofthose assisted, 2/3were adults, 1/3children. 15Y6ofthe adults were disabled. Regarding household size, 4196were singles and 2QY6were 2-person.Only 1596were 3-personhouseholds. With respect toage, 19% were 65 and over. Utility Assistance Programs: When we assist people, we find that very few are on any of the uity?suti|ityaosiatanceprogronmmQ\L|E.P,Sr./Disab|mdYmapRound,orOne-Tirnm\.|rma|izetheseareadvartiuedinthe City Source newsletters, and it?sdisheartening tofind somany who are eligible but not signed up. VVerecommend they sign up, but we don?t have the means or availability to follow up on that. Utility Base Rates: When one looks at a current city utility bill, the base charges total over $100 (see table).7his is before a light switch or a faucet is turned on. That base rate is 8% of the maximum income threshold for a year-round 30% discount for a senior or disabled person ($14,5&O/l2=$1215,$1OO/$121S=.O8).Recommendations: |nMarch of2O2O,onad-hoc group representing the city of Ashland (Kelly Madding), the City Council (Dennis Slattery), OHRA (Ken Gudger), SVdP (myself), and the H&HS Commission (Rich Rohde) developed a set of Utility Policy Recommendations. Then COVID shut things down. I am enclosing these recommendations as many of them are still worthy of consideration. 1. Increase awareness of utility assistance programs to those in need a) Mailer included with utility bill and city source newsletter showing programs and income levels associated with each. Make it colorful and easy to read! b) When client calls Utility office for help in paying their bill, work with them to see if they are eligible for any assistance programs. c) When client calls Utility office for help and isnot eligible for programs, refer them to sources of help: OHRA, SVdP, Access, Salvation Army, etc. d) Get ACCESS involved in signing people up for assistance here in town. 2. Expand awareness of ways citizens can contribute toAssistance Funding a) Expand Round Up program tm allow for additional $ contributions b\ Make donation process easy for ongoing contributions as well as one-time donations. c) Make it clear that the donations are dedicated to Assistance programs d) Reach out to churches and other NGOs to spread the word about the assistance programs and donation process 3. Reorganize the utility shut-off door hanger a) Mention all 3 assistance programs on the door hanger b) Reorder the list of agencies that can provide help: OHRA, SVdP, Access, Salvation Army, AFS, JCFC 4.Trauk signupofor assistance programs for historical data analysis and success ofefforts going forward a\Provide periodicrepoMstoAsh|and9sHouuin8ondHunmmnSeniioaCornnnias|oninco||aborat|onxvithOHR4and3VdPon success of recommendations being implemented (ex: # clients on each assistance program, # accounts participating in Round Up and other donation options, etc.) 5.Ana|yze the Call -Out process for efficiency, success, and response in collaboration with OHR8&SVdPtu include: a\ Comparison with pre'co||outsuccess rate (#rempunding after 1stdoor hangar)b\Enp|oratiunofm/hvthe#ofdoornnt|uesanddimoonnmctsinoreamedsubstanda|h/in2O19,monconmitantWith implementation of Call -Out process c) Send analysis to city?s H&HS Commission Utility Policy Recommendations to Ashland Housing and Human Services Commission Utility Ad Hoc Group (SVdP, OHRA, H&HSComission, City Council liaison, City Manager) Utility AdHoc Committee Recommendations 6. Increase awareness of conservation and energy audit programs a\Mention energy audit and monmerxationprograrnsinOtySource nexxa|e1terb\Suggest helping city regarding energy assistance/conservation programs c\Suggest n meter check if bill seems abnormally high. 7. Consider increasing the financial'benchmarks for the 3 assistance programs. a) Use the financial thresholds from Access as astarting point, but allow for increase as a||nvxed by city ordinance b) Consider a higher income threshold for single households, as they bare a disproportionate share of the fixed costs (base rates). *** USER INFORMATION *** SubscrbedD:-1 Subsuhbe/UserNarne: SubsohberEmai|: RemoteAddress: 68.241.70.76 Remo1eHoat:GG.241.7O.7G RenooteUser: Society of St. Vincent de Paul Utility Assistance Time Frame: Fiscal Year October 2022-September 2023 Purpose: To provide some context and insight into utility assistance we. provide to residents of Ashland. Although one of our guiding principles is that no work of charity is foreign to the Society,.the bulk of or work and expenditure involves helping people stay housed. This primarily means assisting people with rent or utilities. Last fiscal year 62% of our funds went to rent and 16% to utilities. Totals: We assisted 132 households with utility help, including customers of the City of Ashland, Avista, Pacific Power, Recology and City of Talent. Of those, 91 households were clients of the city of Ashland, or 69%. Financially we paid the city of Ashland $22,143 or 65% of our utility outlay. Demographics: Of those assisted, 2/3 were adults, 1/3 children. 15% of the adults were disabled. Regarding household size, 41% were singles and 28% were 2-person. Only 15% were 3-person households. With respect to age, 19% were 65 and over Utility Assistance Programs: When we assist people, we find that very few are on any of the city's utility assistance programs (ALIEAP, Sr./Disabled Year -Round, or One -Time). I realize these are advertised in the City Source newsletters, and it's disheartening to find so many who are eligible but not signed up. We recommend they sign up, but we don't have the means or availability to follow up on that. Utility Base Rates: When one looks at a current city utility bill, the base charges total over $100 (see table). This is before a light switch or a faucet is turned on. That base rate is 8% of the maximum income threshold for a year-round 30% discount for a senior or disabled person ($14,580/12=$1215, $100/$1215=.08). Recommendations: In March of 2020, an ad -hoc group representing the city of Ashland (Kelly - Madding), the City Council (Dennis Slattery), OHRA Service Description Base Charge Electric Residential $16.25 Water Residential $15.62 Water Customer ' $13.33 Sewer Residential $33.94 Electric Users Tax $4.06 Street User Fee S.F. $9.56 Storm Drain S.F. $5.43 A FR 3/4 Inch $3.00 Public Safety Support $1.50 'ITOTAL BASE FEE $102.69 (Ken Gudger), SVdP (myself), and the H&HS Commission (Rich Rohde) developed a set of Utility Policy Recommendations. Then COVID shut things down. I am enclosing these recommendations as many of them are still worthy of consideration. Utility Testimony to CofA.docx John Engelhardt Utility Policy Recommendations to Ashland Housing and Human Services Commission Utility Ad Hoc Group (SVdP, OHRA, H&HSComission, City Council liaison, City Manager) 1. Increase awareness of utility assistance programs to those in need a) Mailer included with utility bill and city source newsletter showing programs and income levels associated with each. Make it colorful and easy to read! b) When client calls Utility office for help in paying their bill, work with them to see if they are eligible for any assistance programs. c) When client calls Utility office for help and is not eligible for programs, refer them to sources of help: OHRA, SVdP, Access, Salvation Army, etc. d) Get ACCESS involved in signing people up for assistance here in town. 2. Expand awareness of ways citizens can contribute to Assistance Funding A..) Expand Round Up program to allow for additional$ contributions b) Make donation process easy for ongoing contributions as well as one - I III WITON M M A" c) Make it clear that the donations are dedicated to Assistance programs d) Reach out to churches and other NGOs to spread the word about the assistance programs and donation process 3. Reorganize the utility shut-off door hanger a) Mention all 3 assistance programs on the door hanger b) Reorder the list of agencies that can provide help: OHRA, SVdP, Access, Salvation Army, AFS, JCFC 4. Track signUps for assistance programs for historical data analysis and success of efforts going forward a) Provide periodic reports to Ashland's Housing and Human Service Commission in collaboration with OHRA and SVdP on success of recommendations being implemented (ex: # clients on each assistance program, # accounts participating in Round Up and other donation options, etc.) 5. Analyze the Call -Out process for efficiency, success, and response in collaboration with OHRA & SVdP to include: a) Comparison with pre-callout success rate (# responding after Vt door hanger) b) Exploration of why the # of door notices and disconnects increased substantially in 2019, concomitant with implementation of Call -Out 1121111� c) Send analysis to city's H&HS Commission Utility AdHoc Committee Recommendations.docx Utility Policy Recommendations to Ashland Housing and Human Services Commission Utility Ad Hoc Group (SVdP, OHRA, H&HSComission, City Council liaison, City Manager) 6. Increase awareness of conservation and energy audit programs a) Mention energy audit and conservation programs in City Source newsletter b) Suggest helping agencies inform clients to initiate contact with city regarding energy assistance/conservation programs c) Suggest a meter check if bill seems abnormally high. 7. Consider increasing the financial benchmarks for the 3 assistance programs. a) Use the financial thresholds from Access as a starting point, but allow for increase as allowed by city ordinance b) Consider a higher income threshold for single households, as they bare a disproportionate share of the fixed costs (base rates). Utility AdHoc Committee Recommendations.docx Study Sessions 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. 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 ;7 Name 10— MAJ^ (please print) City" Study Session Agenda topic/item number/Topic � �61 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. Study Sessions 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. 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 Name (please print) Study Session 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. Kmmz�� 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. 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 121- Name (please print) City Study Session 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. Study Sessions 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. 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. Study Session C, I 26/\�' Agenda to 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. Study Sessions THIS FORM IS A P4BLIC REC(W40 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. 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 —A"'v "�' -- 4 z" > Name (please print) Study Session `� �' N Agenda topic/item number/Topic TV The Public Meeting Law requires that all city meetings are open to the public. Oregon low 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. MzM19= THIS FORM IS A PUBLIC RECORD ALL HWORMATIOV PROVIDED 4-V.4,11-4,BLE TO TVE PU-VLIC 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. 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. 9 � Meeting Date Name (please print) City Study Session 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. 2EYAU= 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. 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 — 4 NameQ�niQ Nyy� a�) (please print) City il L) 11-1 Study Session 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.