Special Water Rate for the Rancho Yolo Mobile Home Park HERB NIEDERBERGER GENERAL MANAGER – UTILITIES, DEVELOPMENT AND OPERATIONS DOUG DOVE, PRESIDENT – BARTLE WELLS ASSOCIATES AUGUST 27, 2013
Rancho Yolo Mobile Home Park Owns the water, storm sewer, and sanitary sewer infrastructure for the 40-acre Park Maintains, at their own expense the water mains, fire hydrants, and water lines running throughout the Park Connected to the City water system by two 3-inch meters serving the Park’s 262 units, Clubhouse, and Commons areas.
Rancho Yolo Mobile Home Park Rancho Yolo offered their own rate design - a mobile home park customer class that begins with the existing multi-family rate and increases by the same percentage as the “average single family” home rate increases for the first two increase of the Council approved rates. Rancho Yolo did not dispute the rate design under CBFR which begins January 2015.
Multi-Family Residential Chapter 39 WATER Article 39.01 IN GENERAL 39.01.010 Definitions. Multifamily residential customer. Any multifamily account with three or more dwelling units. Single-family residential customer. Any single-family dwelling unit, split lot duplex, condominium unit or duplex.
Mobile Home Park vs. Single Family Homes A typical single-family residence in Davis has an individual water meter and the water system delivering water to the residence is owned by the City. For Rancho Yolo to be considered single family residential, the City would require that every mobile home be individually metered (as well as individual irrigation meters installed) and that the distribution system be sized in accordance with current standards. The total of the fixed charge portion of the rate for the 262 individual meters would greatly exceed the cost of the two 3- inch meters.
Water Rate Design Approved by City Council The City of Davis rate design is based upon the Commodity- Demand method (per AWWA). Using the Commodity - Demand method, costs are proportionately allocated to each customer class based on their peak demand.
Water Rate Design Approved by City Council Approved Rate Design: � The costs among all customer classes are allocated proportionately to the service they receive. The unit cost for each customer class varies based on peak demand. � Inclining tiered rates for single family residential customers � Single uniform block for all non - SFR customer classes.
Water Rate Design Approved by City Council BWA analyzed 2011 water consumption data for all customer classes to evaluate usage patterns and proposed rate structure adjustments for a more proportionate allocation of the costs of providing water service and to encourage water conservation. Water consumption patterns over the course of a year show that each customer class has different peak demands.
Separate Mobile Home Rate BWA ran the rate model with a separate mobile home class. The Mobile home parks in Davis have a higher peaking ratio than the multi-family class. Rates for the separate mobile home class calculate higher than the council approved rates for the multi-family class of customers. The separation of the mobile homes from the multi-family class would actually result in a 19% increase over the multi- family rate.
Rancho Yolo Monthly Bill Comparison Based on 2011 Rancho Yolo Average M onthly Water Use = 9.0 ccf/ unit 2014 Adopted 2014 Separate 2014 Low Use M ulti-Family Rate M obile Home Rate Single Family Residential M eter Size Two 3" meters, 264 homes Two 3" meters, 264 homes 3/ 4" M onthly Use (ccf) 9.0 9.0 9.0 Consumption Charge per ccf $2.24 $2.70 $1.53 M eter Charge $1.35 $1.34 $19.68 Consumption Charge $20.16 $24.30 $13.77 Total M onthly Bill $21.51 $25.64 $33.45 Monthly Bill Com parison (9 ccf/ m onth) $4 0 .0 0 $35.0 0 $30 .0 0 $25.0 0 $20 .0 0 $15.0 0 $10 .0 0 $5.0 0 $0 .0 0 20 14 Adopted 20 14 Separate 20 14 Low Use SFR Multi-Fam ily Rate Mobile Hom e Rate
Special Water Rate for the Rancho Yolo Mobile Home Park Staff and BWA carefully considered the Rancho Yolo Mobile Home Parks proposal for rates separate from other Multi- Family Residential users. No justification to have mobile home park residences rates increasing at the exact same percentage as single family rates. This approach would not comply with the Cost of Service and Proportional Cost Recovery provisions of State Constitution
Special Water Rate for the Rancho Yolo Mobile Home Park BWA also found that if mobile home parks were separated into a unique rate class, the rates would actually be higher than if combined with multi-family as currently adopted. Staff recommends that the City Council reject the Rancho Yolo specific proposal and deny the request from the Rancho Yolo Mobile Home Park for a special water rate.
Special Water Rate for the Rancho Yolo Mobile Home Park Consideration of Alternatives to Rancho Yolo Request that do not affect approved rates: � Extension of Lifeline Low-Income Rate Assistance Program to owner-occupied residents of Mobile Home Parks served by a master water meter � Potential for discount of $10/per month on utility rates for households who qualify under the income eligibility requirements (PG&E CARE program). Landlords must agree to distribute the discount to the qualified applicants. At Council direction Staff will investigate changes to the Municipal Code that would accommodate this alternative and return with a proposed ordinance.
Questions
Separate Mobile Home Rate Comparison of Rancho Yolo Requested Rates vs. Council Approved Rates and the Separate Mobile home Park Rate calculated by BWA. Rancho Yolo Council Adopted BW Calculated Requested Rates Rates MHP Rate $ 152.91 2013 Charges: Meter charge ($/mo) $ 305.82 $ 152.91 $ 152.91 Variable charge ($/CCF) $ 1.48 $ 1.81 $ 2.20 $ 177.97 2014 Charges: Meter charge ($/mo) $ 355.94 $ 177.97 $ 177.97 Variable charge ($/CCF) $ 1.71 $ 2.24 $ 2.70
Separate Mobile Home Rate Comparison of Revenues Generated by Rancho Yolo Requested Rates vs. Council Approved Rates and the Separate Mobile Home Park Rate calculated by BWA . (a) (b) (c) (d) (e) (f) Rancho Yolo Ave Council Ave BW Ave Requested Rates charge/MH Adopted Rates charge/MH Calculated charge/MH 5 5 5 ($/mo) ($/mo) MHP Rate ($/mo) 2013 Charges: $ 2,446.56 Meter charge ($/mo) 1 $ 4,893.12 $ 2,446.56 $ 2,446.56 Variable charge ($/CCF) 2 $ 36,171.20 $ 44,236.40 $ 53,768.00 Total 2013 Charges $ 38,617.76 $ 18.42 $ 41,064.32 $ 19.59 $ 46,682.96 $ 22.27 $ 56,214.56 $ 26.82 2014 Charges: $ 4,271.28 Meter charge ($/mo) 3 $ 8,542.56 $ 4,271.28 $ 4,271.28 Variable charge ($/CCF) 4 $ 53,010.00 $ 69,440.00 $ 83,700.00 Total 2014 Charges $ 57,281.28 $ 18.22 $ 61,552.56 $ 19.58 $ 73,711.28 $ 23.45 $ 87,971.28 $ 27.98 1 Two 3-inch meters from May - Dec 2013 2 8 month consumption of 24,440 ccf 3 Two 3-inch meters from Jan-dec 2014 4 12 month consumptio of 31,000 ccf 5 Divide the Total Charges per year by the number of MHs in Rancho Yolo (262) over the time period the rates are in effect for the first two years of the rate increase (2013 – 8 months & 2014 – 12 months)
Rancho Yolo Mobile Home Park Com parison of Revenues Generated by Rancho Yolo if the Single Fam ily Residential Rates are Applied (a) (b) Council adopted Ave SFR Rate Charge/MH 5 ($/mo) 2013 Charges: Meter charge ($/mo) 1 $ 36,323.68 Variable charge ($/CCF) 2 $ 30,060.41 Total 2013 Charges $ 66,384.09 $ 31.67 2014 Charges: Meter charge ($/mo) 3 $ 61,873.92 Variable charge ($/CCF) 4 $ 30,999.84 Total 2014 Charges $ 92,873.76 $ 29.54 1 Assume 262 units w/3/4-inch services from may - dec 2013 2 8 month consumption of 24,440 ccf ; calculates to average usage of 11.66 ccf/mo 3 Two 3-inch meters from Jan-Dec 2014 4 12 month consumption of 31,000 ccf; calculates to average usage of 9.86 ccf/mo 5 Divide the Total Charges per year by the number of coaches in Rancho Yolo (262) over the time period the rates are in effect for the first two years of the rate increase (2013 – 8 months & 2014 – 12 months)
Special Water Rate for the Rancho Yolo Mobile Home Park Rancho Yolo June 27 th Letter � Does not include any new information � Continues to suggest changes that would violate the Cost of Service and Proportional Cost Recovery provisions of State Constitution when setting rates � Draws attention to factors to distinguish a separate class that do not go into consideration when classifying customers and designing water rates.
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