Two Classes jump +/- 5% COSA. Does that mean we won’t uniformly apply the 2.25% annual increase to sewage costs to all customers in this rate cycle?


Slide 25*:   I’m confused by differences here…..seem to say the fact that two Classes jump well beyond the industry norm of +/- 5%, we need to reevaluate COSA in next study.   Does that mean we won’t uniformly apply the 2.25% annual increase to sewage costs to all customers in this rate cycle….or that we will……or ?

* FCS Presentation

  1. This means Non-Residential Medium and High need to go up more than average, and residential needs to go down. To avoid double stacking (compounding) impacts for Non-Residential we are proposing to increase each class’ revenue by 2.25% (which may vary by individual account) and re-evaluate the results again once the reclassification is completed. The slide shows the results of the cost of service; however, the recommendation is to defer implementing the results until data can be collected under the new rate structure. After a couple of years of data under the new rate structure, cost of service can again be evaluated to determine if the initial cost of service trends exist and the City can begin phasing in results of the cost of service with much more confidence, or if results are showing different results and a recalibrated approach is warranted. The reason for the caution when implementing cost of service under changing conditions is to minimize the risk of rate swinging dramatically from one study to another.

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1. How will these changes affect my residential water and sewer bills?
2. What is the estimated/possible impact for a specific customer?
3. Is the Phase 5 for the Water Reuse & Reclamation Facility (WRRF) the phase that deals with effluent temperature reduction?
4. How do car washes fit into the scheme?
5. Should there be some consideration of the more commercial aspects of “churches” that extend beyond their primary use?
6. Do the water rate computations include the capital costs of maintenance and/or replacement of the reservoirs/water towers?
7. Some explanation of how water use and sewer use are going up 0.85 and 0.75% per year when the population growth is a pretty steady 1.0 - 1.2% per year. This does not, on the surface, make sense.
8. Has/is the U of I been part of this process? It seems they will be impacted by the sewer rates and assuring they know what’s being contemplated is necessary.
9. On slide 19 of the presentation, “multi-family” Is listed as a “non-residential” use. But on slide 24, it seems to reappear as a residential use. I was a bit confused on that - clarification please?
10. Are the rates based on actual cost of service to deal with the biosolids/FOG produced? How did we parse-out those rates?
11. Does the study include enough “buffer” to allow for sufficient funds to be generated if users decrease their consumption/output dramatically in order to reduce their costs?
12. What if many of the commercial clients ask for, and are granted a reduction in their classification? Has the impact of that on the revenue stream been contemplated?
13. The two reserves cited here are ‘one time’ pools of funds, there is not a need to newly replace the reserve in each successive year. Is that right?
14. Slide 24*: Where does the data for flow/BOD/TSS for the various accounts come from? Why are BOD and TSS always the same figure, for a given customer?
15. Two Classes jump +/- 5% COSA. Does that mean we won’t uniformly apply the 2.25% annual increase to sewage costs to all customers in this rate cycle?
16. What is the total cost UI should expect to pay in the coming years for sewage? With declining enrollment, should volumes be reevaluated?
17. Non-Residential - Low, - Medium, - High. Almost identical # of customers, but higher ccf for medium. Confused by difference between flows and % fund allocation for high and medium.
18. What have other communities done in response to virus, delay for a year?
19. Adversely affected customers, will the City be conducting outreach?
20. How does the General Facilities Charge (GFC) apply to existing buildings that are being split?
21. Shouldn’t Multifamily use the same kind of consumption based system as the Non-residential class?