City of Culver City, California
Agenda Item Report
Meeting Date: 08/13/12 Item Number: PH-2
CITY COUNCIL AGENDA ITEM: PUBLIC HEARING - Adoption of a Resolution
Confirming the Assessment and Ordering the Levy for the Sewer User’s Service
Charge - Fiscal Year 2012/2013
Contact Person/Dept.: Mate Gaspar/PW Phone Number: (310) 253-5602
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (08/09/12); Publication
in the Culver City News
Department Approval:
Charles D. Herbertson (08/02/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (08/08/12)
Chief Financial Officer Approval:
Jeff Muir (08/08/12)
City Manager Approval:
John M. Nachbar (08/09/12)
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution confirming the assessment
and ordering the levy for the Sewer User’s Service Charge - Fiscal Year 2012/2013.
PROCEDURE:
1. Mayor seeks motion from City Council to receive and file the affidavits of
publication and posting of notices and correspondence received in response to
the public hearing notices; and,
2. Mayor calls for a staff report and the City Council Members may pose questions
to staff as desired; and,
3. Mayor seeks a motion to open the public hearing; and,
4. Mayor seeks a motion to close the public hearing after all public testimony has
been presented; and,
5. City Council discusses the item and arrives at its decision.
BACKGROUND:
Culver City obtains sewage treatment services at the City of Los Angeles' Hyperion
Treatment Plant through an Amalgamated Agreement with the City of Los Angeles.
(Agreement). The Agreement requires Culver City to pay a proportionate share of
the costs of conveyance, operation, maintenance, repair and capital improvements
to upgrade and improve the Amalgamated Sewerage system.
City of Culver City, California
Agenda Item Report
Culver City owns and operates a separate sewage collection system, which is
connected to the Amalgamated system.
Federal law requires that all agencies using the City of Los Angeles' Hyperion
Treatment Plant adopt a system of charges to assure that each property served by
a public sewer pays its fair share of costs for the operation, maintenance, repair
and improvement of the Hyperion Treatment Plant. The “fair share” of each
property is based on its contribution to the system in terms of flow quantity and
sewage strength (biochemical oxygen demand and suspended solids). This is in
addition to the cost experienced by Culver City in the collection, operation, and
improvement of our own sewage collection and conveyance system.
All of these costs are annually determined and presented to the City Council in the
Engineer’s Report, in accordance with Section 5.02.035 of the Culver City Municipal
Code (CCMC).
In addition to formulating and adopting a system of Sewer User’s Service Charges,
the City must also select a system for collecting these charges. In 1980, based on
an engineering study and the City Engineer’s recommendation, the City Council
initiated a once-a-year billing procedure for Sewer User’s Service Charges that
places each property owner’s charges on their property tax bill. This method of
collection has proven to be very efficient and provides the lowest cost billing and
collection service for Culver City.
On July 2, 2012, the City Council approved the Engineer’s Report, declared its
intention to order the assessment levy and collection of assessments, and set the
date, time, and place for this public hearing for the Sewer User’s Service Charge.
The hearing was continued to this evening from its original date (July 23, 2012) to
allow for full noticing of the hearing to be completed.
DISCUSSION:
On May 7, 2012, the City Council approved a professional services agreement with
NBS Government Finance Group dba NBS for an update to the sewer user’s service
charges (SUSC). The scope of work is for NBS to conduct an in-depth review of the
existing SUSC and determine if they are fair and equitable to each customer class in
light of the cost passed on to the City of Los Angeles to treat the wastewater and the
City’s costs for collection and conveyance of the sewage in its own system.
NBS has completed the analysis and determined the following:
1. The City’s current sewer rates need to be adjusted to collect more revenue from
single family customers and less from other customer classes, particularly
commercial/restaurant customers.
City of Culver City, California
Agenda Item Report
2. The City should collect approximately 60% of rate revenue from base charges
and 40% from its commodity charges based on the classification of current
expenses as either fixed or variable. Currently the City collects 90% of rate revenue
from commodity charges. Base charges are personnel costs (including cost for
maintenance of the City’s sewage collection system), office expense and most of the
administrative charges and consultant support costs. These costs do not vary
directly with the quantity of sewage produced. Commodity charges cover what the
City pays to the City of Los Angeles for wastewater treatment-related costs, utilities
at the pump stations, and 25% of administrative charges and consultant support.
These charges are more directly tied to the quantity of sewage produced.
3. Existing landscape irrigation credits for residential customers are reasonable.
In addition, NBS prepared a 5-year financial plan/revenue requirement for the sewer
enterprise fund which is based on several factors such as NBS’ recommended
targets for operating, capital and debt reserve balances and the City’s projected
capital improvement program.
The attached Engineer’s Report contains a detailed explanation of the rate analysis
and 5 year financial plan. NBS will also conduct a presentation of the Study this
evening. The Study is also attached to this report.
Based on recommendation contained in NBS’ study and Engineer’s Report, Staff is
recommending rate reductions for the following customer classes:
Code Customer Class
Proposed
percentage
reduction
102 Multi-Family
200 Commercial/Business:
300 Commercial/Restaurants:
400 Institutional:
600 Special Users
-1% reduction
-2% reduction
-13% reduction
-4% reduction
-8% reduction
Staff is not recommending any rate increases since any proposed rate increase
requires a 45-day public notice under Proposition 218, and there would not be
enough time to submit the sewer charges to the County Assessor’s office in August
2012. The Study recommended an 11% rate increase for single family residences. City of Culver City, California
Agenda Item Report
Also the Study recommended rate increases of 4% across all customer classes
beginning in Fiscal Year 2013/2014 and continuing through 2015/2016. In addition,
base charges will be proposed to be adjusted in 2013/2014 to achieve the
recommended 60%/40% revenue split. This is explained in detail in the Study and
Engineer’s Report.
Pursuant to Section 5.02.035.C of the Culver City Municipal Code (CCMC), any
interested persons may file a written protest with the City Clerk (or withdrawal a
previously filed protest) until the conclusion of the Public Hearing. However, since a
rate increase is not being proposed, a majority protest will not exist. Pursuant to
CCMC 5.02.035.D, at the conclusion of the hearing, the City Council shall allow or
overrule any objections and modify the report if it is deemed necessary. Adoption of
the proposed Resolution shall confirm the report and the charge against each parcel
shall be a special assessment and lien on that parcel.
ATTACHMENT:
1. Proposed Resolution
2. Engineer’s Report
3. NBS Sewer Rate Study
MOTION:
That the City Council:
(Absent a majority protest) Adopt the Resolution confirming the assessment and
ordering the levy for Sewer User’s Service Charge for Fiscal Year 2012/2013.
MEETING DATE: 08/13/12
AGENDA ITEM: PUBLIC HEARING Adoption of a Resolution Confirming the
Assessment and Ordering the Levy for the Sewer User's
Service Charge - Fiscal Year 2012/2013
ATTACHMENTS
Pages
Proposed Resolution
1-3
2 Engineer's Report
4-9
3 NBS Sewer Rate Study
10-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, CONFIRMING THE
ASSESSMENT AND ORDERING THE LEVY FOR THE
SEWER USER'S SERVICE CHARGES FOR FISCAL YEAR
2012-2013.
I RESOLUTION NO. 2012-R
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3
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WHEREAS, the City Council previously completed proceedings in
7
8 accordance with the provisions of Chapter 5.02 of the Culver City Municipal Code
9 ("GCMG") for the levy and collection of annual assessments for the system of sewer
10 user's service charges providing that each parcel of property shall pay its proportionate
11 share of the costs for operation, maintenance, repair and improvements of the City
12 sewerage system (the "Sewer User's Service Charges"); and,
13
WHEREAS, on July 2, 2012, the City Council approved the Assessment.
14
15 Engineer's Report (the "Engineer's Report") and declared its intention to provide for the
16 levy and collection of annual assessments for Fiscal Year 2012-2013, to provide for the
17 costs and expenses necessary for the operation, maintenance, repair and
18 improvements of the City sewerage system; and,
19
WHEREAS, the City Council has heard all testimony and considered all
20
objections to the assessment at a duly noticed public hearing held on August 13, 2012
21
22 and has determined to proceed with the levy of annual assessments for the District.
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NOW, THEREFORE, the City Council of the City of Culver City, DOES
24 HEREBY RESOLVE as follows:
25
1. The City Council hereby confirms the assessment and the
26 allocation of the levy amounts so that each parcel of property shall pay its proportionate
27
share of the costs for operation, maintenance, repair and improvements of the City
28
1 I sewerage system, as is described in full detail in the Engineer's Report on file with the
2 Clerk.
3
2. The adoption of this resolution shall constitute the levy of an
4 assessment for the fiscal year commencing July 1, 2012 and ending June 30, 2013.
5
3. The assessment for the Sewer User's Service Charges as set forth
6
in the Engineer's Report shall be performed pursuant to law. The County Auditor shall
7
8 enter on the County Assessment Roll the amount of the assessment and the
9 assessment shall be collected at the same time and in the same manner as the County
10 property taxes are collected. After collection by the County, the net amount of the
11 assessment shall be paid to the City of Culver City.
12
4. Upon receipt of monies representing assessments collected by the
13
County, the City shall deposit the monies into a special fund known as the "Fund for
14
15 Sewer User's Service Charges" which was previously established upon the creation of
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the District.
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5. Immediately upon the adoption of this Resolution, the City Clerk
18 shall file a certified copy of this Resolution, which' includes the Engineer's Report
19 containing the allocation of levy amounts and assessment, with the County Auditor.
20 / / /
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111
24
If'
25 III
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III
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III
28
-2- ANDREW VVEISSMAN , Mayor
City of Culver City, California
APPROVED AS TO FORM:
CAROL A. SCHWAB, City
-3-
6. A certified copy of the Engineer's Report shall also be filed in the
2
Office of the City Engineer, with a duplicate copy on file in the Office of the City Clerk,
3 and shall be open for public inspection.
4
5
APPROVED and ADOPTED this day of
2012.
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ATTEST:
11
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13 MARTIN R. COLE, City Clerk
Attorney
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Al2-00534
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28 CHARLES D. HERBERTSON
Public Works Director/City Engineer
001510,,C W-Otia 157E -MittkdKr
9770 CULVER BOULEVARD, 2ND FLOOR
CULVER CITY, CALIFORNIA 90232-0507
Phone (310) 253-5600
FAX (310) 253-6626
ENGINEER'S REPORT
ON THE ANNUAL LEVY
2012-2013
SEWER USER'S SERVICE CHARGE
IN THE CITY OF CULVER CITY UNDER THE
PROVISIONS
OF CHAPTER 5.02 OF THE CODE OF THE CITY OF
CULVER CITY, CALIFORNIA
FILED with the City Clerk
on June 28, 2012
PRESENTED to the City Council
and APPROVED by Resolution
No. 2012-R adopted by said
City Council on July 2, 2012
and thereafter filed in the
Office of the City Clerk
Martin Cole
City Clerk
City of Culver City
It TO; The Honorable Mayor and Members of the City Council
FROM: Charles D. Herbertson, Public Works Director and City Engineer
CITY ENGINEER'S REPORT FOR SEWER USER'S SERVICE CHARGES FOR
FISCAL YEAR 2012-13
Charles D. Herbertson RCE 46658
Public Works Director and City Engineer
1 70 Introduction
A major Challenge confronting those responsible for wastewater infrastructure,
transportation, treatment and disposal is acquiring adequate funds to finance and
operate facilities and capital equipment, along with implementing appropriate pricing
structures to ensure the self-sufficiency of the utility. The financing vehicle that is used
by the utility and the timing of the financing are crucial in ensuring that wastewater
customers are appropriately paying for facilities and services that they need, and not
inappropriately financing facilities for future customers. It is a major goal of an effective
financial plan to 'match' the economic impact on customers with the benefits received
from the service.
Regulations governing Federal and State grant funds require the City of Los Angeles to
maintain a Cost Recovery Program (Sewer User Charges System) which includes all
operations and maintenance costs directly or indirectly related to the treatment and
collection of liquid waste discharge by residents and businesses. As a result of Culver
City's contractual relationship with the City of Los Angeles for wastewater treatment at
the Hyperion Treatment Faciftty (Hyperion), Culver City (City) is also required to recover
from each wastewater user their proportionate share of the costs incurred for
wastewater collection capital improvements within Culver City, wastewater system
operation and maintenance, City of Los Angeles capital improvements for conveyance
to Hyperion and operation and maintenance at Hyperion. Accordingly, Culver City
adopted a plan to collect wastewater user charges and implemented it for the first time
in fiscal year 1980-81.
The City recovers wastewater user charges on an annual basis. Since the plan's
inception, the County Auditor-Controller's offices, and the annual property tax bill, have
been utilized as the vehicle for both billing and collection. This method has proven to be
both functionally satisfactory and exceptionally economical.
in Fiscal Year 2003-2004 the City Council approved an update to the Sewer User's
Service Charges (SUSC) structures and billing formulas. 2.0 Discussion
As it has been 9 years since the last update and due to several concerns expressed by
certain property owners regarding the existing sewer formulas, the City Council
approved staffs recommendation to enter into a contract with NBS to conduct a rate
study of the current SUSC. The study has been completed and includes
recommendations that will improve and best meet the Citys goal of fairly and equitably
collecting the annual sewer revenue requirements.
The first part of the Study contains a proposed five-year financial plan for the sewer
enterprise funds in order to meet recommended operating, capital, and debt reserve
balances and to adequately fund the City's proposed capital improvement program.
The current unreserved cash balance is $17.2 million, although most of this will be
spent on capital improvement projects over the next four years.
The new targets for reserve balances recommended by NBS are as follows:
1 Operating Reserve — 25% or 90 days of operating and maintenance
expenses.
2. Capital Rehabilitation and Replacement Reserve — 3% of system net
assets. The net assets is based on the 2010/11 CAFR, plus capital asset
additions and annual depreciation adjustments, it is estimated that the
City's Net Asset value of the sewer system is approximately $41.6 million.
3. Debt Reserve — the maximum annual debt service payment, as specified
by the bond covenants.
These recommended targets for reserve balances equate to approximately $4.5 million.
The capital improvement program is proposed to total $13.8 million in the five-year
financial plan. This information was provided to NBS from City staff. Staff also provided
NBS the projected charges by the City of Los Angeles, Culver City personnel costs, and
administration and consultants expenses.
Based on the aforementioned recommended targets for reserve balances, proposed
capital improvement program, and other expenses, the Study recommends 4% rate
increases in each of the next three years, (Fiscal Years 2013/14 through 2015/16). At
the end of the 5-year plan, the unreserved cash balance is projected to be
approximately $4.5 million which matches the recommended reserve balance
The second part" of the Study was a cost-of-service analysis. The purpose of this
analysis is to equitably allocate the sewer costs to each customer class. The process
includes two steps, first classifying the four types of costs (volume, BOD, SS, and
number of accounts) and then allocating them based on specific factors for each type of
cost. The Study contains several Exhibits that show how this is calculated.
The results of this exercise show that the revenue requirements change in each of the
custorner classes. For example Cr additional 11
0
of tl-ie revenue should come from
single family customers. It also shows a reduction of 13% of the revenue from the
commercial/restaurants customer class. The following table summarizes the cost-of-service analysis revenue requirements from
each customer class for Fiscal Year 2012-2013:
Customer Class
Code .
Commodity Charge
101 Single-Family
102 Multi-Family
200 Commercial/Business:
300 Commercial/Restaurants:
400 Institutional:
600 Special Users
+11% increase
-1% reduction
-2% reduction
-13% reduction
-4% reduction
-8% reduction
The third part of the study was a rate design analysis, which evaluated how the revenue
requirements should be collected from base charges vs. commodity rates. This part of
the study looked at all the sewer enterprise fund expenses and determined which ones
are fixed costs (base•charges) and variable costs (i.e. commodity charges). Base
charges should be used to recover costs such as personnel costs, capital improvement
costs, office expenses, and most of the administrative costs and consultant charges.
Commodity charges should be used to recover what the City pays to the City of Los
Angeles for wastewater treatment-related costs, utilities at the seven sewer pump
stations, and some of administrative and consultant charges. The study determined
that approximately 60% of the sewer utility costs are fixed and 40% are variable.
Therefore, fixed charges (base charges) should collect 60% of the sewer rate revenue,
and commodity charges should collect 40%.
This proposed change will improve the stability of the revenue amount because if
overall water consumption is lower than the previous year, only the revenue collected
from the commodity charge would be lower. Water consumption has been significantly
lower these past several years due to a combination of factors such as water
conservation and economic slowdown as shown in the following table:
2006 calendar year 2,435,491 HCF consumption
and not irrigation
$8,683,340 sewer revenue
2007 2,451,378 HCF $8,668,401
2008 2,284,560 HCF $8,104,502
2009 2,285,866 HCF $8,107,837
2010 2,062,720 HCF $7,544,561 As a result, with no changes to the rates since 2007, sewer revenue has decreased by
over $1 million.
At the time of the writing of this report, Staff received the water consumption data for
2011. A preliminary review indicates that the water consumption is nearly the same as
it was in 2010. It is important to note that while conducting the study, NBS relied on the
2010 water consumption numbers and revenue numbers.
3.0 Recommendation
Staff recommends that:
1.) Only rate reductions be approved for the 2012-13 tax rolls.
Customer Class
Code .
Commodity Charge
102 Multi-Family
200 COmmercial/Business:
300 Commercial/Restaurants:
400 Institutional:
-
600 Special Users
-1% reduction
.2% reduction
-13% reduction
-4% reduction
-6% reduction
It is too late now to recommend an 11% increase to the single family residence rates
because the City is required to meet the Proposition 218 requirements of a minimum 45
day notice of the Public Hearing and submit the sewer charges to the County
Assessor's office by their August 10 deadline. Staff proposes that the 11% increase be
gradually implemented over a three-year period, beginning in 2013-14. This is in
addition to the 4% rate increases for all customer classes beginning next year (2013-
14).
2.) Residential customers can request alternative credits for landscape irrigation in two
ways: I) by installing a separate water meter for landscaping which will not be
assessed sewer charges on the tax bill, or ii) prove by submitting calculations and
evidence that the percentage reduction in the tabled formula is not adequate.
3.) Continue to use Los . Angeles Auditor-Controller property tax roll for SUSC billing
purposes for FY 2012-2013 as it eliminates costly billing systems, additional staff,
and.minimizes bad debt. Proposed SUSC Rates for 2012-2013
Customer Class
Code
Base Charge Commodity Charge
102 Multi-Family $ 41.80 + ON x $3.80)
101 Single Family $ 42.32 + (0,58W x $3.85)
200 Commercial/Business: $ 41.37 + (W x $3.76)
300 Commercial/Restaurants: $ 36.89 + (W x $6.65)
400 Institutional: $ 40.50 + (W x $3.59)
500 School/Public: $ 42.32 + OW x $3,26)
600 Special Users
601 $ 39.11 + (W x $3.79)
602 $ 39.11 + (W x $4.94)
603 $ 39.11 + (W x $4.94)
604 $ 39.11 + (W x $3.47)
605 . $ 39.11 + (W x $2.97)
606 $ 39.11 1- (W x $4.94)
607 $ 39.03 + (W x $4.55)
609 • - $ 39,10 + (W x $3,56)
610 $ 39.11
+
(W x $0.71) .
612 $ 39.12 + (W x $0.36)
613 $ 39.11 + (IN x $0.36)
614 $ 39.09 + (W x $0,36)
615 $ 39.12
+ ON x $3.02)
W=Annual Water Consumption in HCF
Unit is a resident dwelling unit. kt -73)NBS
helping communes
tuna tomorrow
670 Market Street, Suite 1223
San Francisco ., CA 94102
Tall free; 600.434.8349
nbsgov.corrt
TRANSMITTAL
TO: MATE GASPAR, ENGINEERING SERVICE MANAGER
CULVER CITY
FROM: KIM BOEHLER, CONSULTANT
GREG CLUMPNER, DIRECTOR
NB$
NBS
SUBJECT: SEWER RATE STUDY FINDINGS, RECOMMENDATIONS AND
PROPOSED RATES
DATE: JUNE 26, 2012
PURPOSE
The purpose of this transmittal is to summarize the findings of the Sewer Rate Study that NBS perfor rmed
for Culver City's Sewer Utility (City or Utility). NBS' findings focus on equitably allocating Utility costs to
each customer class and adjusting base charges and commodity rates in a manner that meets
Proposition 218 requirements and is fiscally sustainable. Projected revenue requirements and rate
adjustments cover the next four years (2012-13 through 2015-18). Recommended rate adjustments for
2012-13 retain the City's current rate design, while rates after 2012-13 incorporate cost-of-service
adjustments, including collecting 60% of rate revenue from base charges and 40% from commodity
charges. These changes are explained in more detail below.
Two appendices are included in this transmittal:
• Appendix A: Selected Tables for the Financial Plan and Revenue Requirement Analysis
• Appendix B: Selected Tables for the Cost-of-Service and Rate Design Analysis
OVERVIEW
A comprehensive sewer rate study typically includes the three key components shown in Exhibit 1, which
are based on industry standards such as the American Water Works Association (AWWA) and Water
Environment Federation (WEF) cost of service methodologies. The cost-of-service component in
particular addresses the general requirements of equity and fairness embodied in Proposition 218. In
terms of the chronology, these three steps represent the order they were performed in this study.
Sewer Rate Study — City of Culver City
Prepared by NBS — June 26, 2012
Page 1
10 1. Financial
Plan/Revenue
Requirements
Exhibit 1. Primary Components of a Rate Study
Step 1: Financial Plan/
Revenue Requirements
Compares CU rrent sources
of funds (revenues) to uses
of funds (expenses) and
determines the revenue
needed from rates.
2. Cost-of-
Service
Analysis
Step 2: Cost-of-Service
Analysis - Allocates the
revenue requirements to
the various customer
classes in a "fair and
equitable" manner that
complies with Prop 218.
3. Rate Design
Step 3: Rate Design -
Considers what rate
structure alternatives will
best meet the City's need
to collect the annual
revenue requirements from
each customer class.
As a result of this rate study, changes in the total amount of rate revenue collected from each customer
class, as well as changes to base charges and commodity rates, are recommended. The following are the
key findings, followed by a summary of each of the three parts of this rate analysis.
KEY RATE STUDY FINDINGS
The following are NBS' key findings based on our analysis of the City's sewer revenue requirements, cost
of service, and rate design issues. More details are provided in the following sections.
• Revenue Requirements by Customer Class — Based on the results of the cost-of-service
analysis, the City's current sewer rates need to be adjusted to collect more revenue from single-
family residential customers and less from other customer classes, particularly commercial/
restaurant customers. However, this additional revenue that should be collected from the single-
family residential customers will be "phased-in" over a period of three years.
• Changes in Rate Design — The City currently collects approximately . 90% of its rate revenue
from commodity (consumption-based) charges and only 10% from base charges. Based on a
classification of current expenses as either fixed or variable, the City should collect closer to 60%
Of rate revenue from base charges and 40% from its commodity charges.
Landscape/Irrigation Factors for Residential Customers — The City's most current water
consumption data (for 2010) indicates that total water consumption per dwelling unit is
approximately 10 hcf/month for single-family customers compared to 5.6 hot/month for multi-
family customers. City of Los Angeles data l indicates that 58% of single-family water usage is
returned to the sanitary sewer collection system as effluent, compared. to 85% for multi-family
customers. In light of the lack of recent, actual flow-return data for these two customer classes,
these assumptions are not unreasonable; due to landscape irrigation, single-family customers
typically return a lower percentage of water consumption to the sewer system.
1 From the City's 2003-04 Engineer's report, Table 2 - Summary of Users.
11
Sewer Rate Study — City of Culver City Page 2
Prepared by NBS — June 26, 2012 FY 2015/17
Budget Projected
FY 2012113 FY2013/14 j FY 2014/.15
FY 2015 110
$ 3,000,000
$ 100,000
100,000
100,000
500,000
100,000
150,000
100,000
200,000
$ 3,000,000
$ 3,000,000
26,472
FINANCIAL PLAN AND REVENUE REQUIREMENTS ANALYSIS
Projected Revenue Requirements and Rate Increases — NBS
prepared a detailed five-year financial
plan. The results of this plan indicate that the Utility is able to meet all obligations in Fiscal Year 2012/13
without rate increases, but will need a four percent rate Increase in each of the next three years (2013/14
through 2015114
Exhibit 2. Summary of Five-Year Revenue Requirements and Rate Increases
Summary Of Sources and Uses Of Funds and
Net Revenue Requirements
Sources of Sewer Funds
Rate Revenue Under Prevailing Rates
Industrial Waste Inspection Fees
Interest Earnings
Total Sources of Funds
$ 7,340,661
70,000
202,000
$ 7,612,661
$ 7,340,661 $ 7,340,661 $ 7,340,661 $ 7,349,661
70,000 • 70,000 70,000 70,000
150,000 150,000 180 000 150,000
7,560,661 $ 7,560,661 $ 7,560,661 $ 7,560,661
Uses of Sewer Funds
Operating Expenses
$ 5,858,476 $ 6,210,405 $ 6,096,069 $ 6,332,396 $ 6,509,572
Debt Service
1,666,800 1,605,200 1,603,000
1,608,300 1,605,350
Rate-Funded Capital Expenses
482.386
Total Use of Funds
$ 7,465,275 $ 7,815,605 $ 7,699,069 $ 8,423,082 $ 8,115,222
„Mlle
Additional Revenue from Rate Increases
293,626
916,584 916,584
IllEV,:kt
fil;!INOA
II
Projected Annual Rate Increase
0.00%
4.00%
4,00%
0.00%
Cumulative Rate Increases
0.00%
4.00%
12.49% 12.49%
:,, ZikWoL
1, Total Use of Funds less Industrie! Water Inspection Fees. and Interest Earnings. This is the annual amount needed from set4nr rates_ Houever,
the proposed rates in this rate study have been set to recover the revenue currently collected from customers ae., $7, 544,660 less
$204,000 for the reduction in estimated revenue for FY 201244 per the Cost of Service Analysis results.
Capital Improvement Projects and Costs — The Utility has an adopted Capital Improvement Program
(01P) that has identified capital projects totaling $13.8 million, which are planned in 2012113 through
2015/16. These projects will be funded from a combination of cash reserves set aside for rehabilitation
and replacement, and rate revenue.
Exhibit 3. Adopted Capital Improvement Program
Fiscal Years 2012113 through 2015/16
Project.Description
Sewer Main Rehabilitation Project
Sewer Main Point Repair, Manhole Rehabilitation, and Sewer Video
Sewer Pump Stations Improvement P-521
Jasmine SecondForce Main Project
Overland pipeline diversion (Construction)
Hayden second force main Project
2nd force main Braddock connection to Los Angeles
New Pump Station Selmaraine
New pipelines to divert Mesmer
New siphon at sewer convergenc at CukertMadisOn
Upsize Duquesne Sewer Pipe to 21 inch from Lucerne to Jefferson
Financial System Replacement/Enhancements
Sewer Rate Study — City of Culver City
Prepared by NBS —June 26, 2012
Page 3 Debt Reserve
Beginning Balance
Recommended Minimum Target
Operadng Reserve
Beginning Balance
Recommended Minimum Target
Capital Rehab & Replacement Reserve
Beginning Balance
Recommended Minimum Target
Beginnjn0 Reserve Fund Bola nces end
Reconmended Wsgrue targets
$ 14,101.776 $ 10,187,340
1,250,000 1,210,000
FY 2 012 11 3
Budget
FY2014/15 FY 2015116
Projected
• Cash Management and Target Reserve Fund Balances — The Utility will begin Fiscal Year 2012/13
with a total cash balance of $17.2 million. Exhibits 4 and 5 summarize the cash balances by reserve fund
and show the recommended target reserves. Due to the costs of the planned capital improvement
projects, the Utility will need to draw down the Capital Rehab & Replacement Reserve over the next five
years.
Exhibit 4. Ending Cash Balance Compared to Recommended Reserve Target
Exhibit 5. Ending Cash Balance Compared to Recommended Reserve Target
NBS' recommended targets for year reserve balances are as follows:
• Operating Reserve - 25% or 90 days of operating and maintenance expenses_
• Capital Rehabilitation and Replacement Reserve - 3% of system net assets 2 .
• Debt Reserve - the maximum annual debt service payment, as specified by the bond covenants_
2
Based on the 2010/11 CAFR, plus capital asset additions and annual depreciation adjustments, A185 has used a
Net Asset Value of $41.6 million.
Sewer Rate Study— City of Culver City
Page 4
Prepared by NBS — June 26, 2012 Cost-of-Service: Surnmqry,äf AllocatIon of Revenue Recfpirements
-
Cost of Service Alloc'ote'cl Costs 2012
{VIOL
54 %
$962,013
$1,522,095
61388,087
$225,777
$113,140
$7,444
$258,430
10001
13%
$246,676
$390,290
$227,720
$183,523
$37,194
$1,273
$84,956
COST-OF-SERVICE ANALYSIS
The purpose of the cost-of-service analysis is to equitably allocate the sewer utility costs, or the net
revenue required from sewer rates, to each customer class. This process includes two primary steps:
1. Classifying various expenditures to one of four types of costs:
a Volumetric-related costs
b. Strength-related costs, including:
• Biochemical Oxygen Demand, or BOD
• Total Suspended Solids, or TSS
c. Customer-related costs
2. Allocating costs to customer classes based on specific allocation factors for each of the
four cost types:
a. Volumetric-related costs, are allocated using the percentage of total effluent (or water
consumption as adjusted for landscaping uses) from each customer class.
b. BOD-related costs are allocated based on estimated total pounds of BOD generated per
year by each customer class, and reflects the assumed concentrations of BOD for
residential, restaurants, commercial offices, etc.
c. TSS-related costs are allocated based on estimated total pounds of TSS generated per
year by each customer class, which reflects the concentrations of TSS for residential,
restaurants, commercial offices, etc.
d. Customer-related costs are allocated based on the number of accounts in each customer
class.
This analysis produced the results shown in Exhibit 6 below, along with a summary of the sewer rate
revenue currently collected from each customer class compared to the revenue requirements based on
the cost-of-service. As shown in this table, an additional 11% of the revenue should come from single-
family customers, while the restaurants and hotels should have reductions in rate revenue of 13% and
8%, respectively.
Exhibit 6. Revenue Requirements by Customer Class from COS Analysis
Net F .tr.f.fltle Reel uifement by Class
101 Single-Fain
102 Mill-Farr*
200 Commercial/Busrness
300 Canmercial/Restatrants
400 hs Muttons]
500 Schools/Pubic
600 Commercial/Hotels
(CA)
22%
$544,013
$557,926
$102,99s.
$15,649
$5,4C6
$1,043
$3,319
(T5
12 ,4
$239,608
$379,107
$221,195
$202,890
$16,011
$1,053
$71,318
COS Rev, % of cos
Reg% Rev, Recit
61,992,310
26.4%
*2,879,417
38.2%
$1,440,000
19.1%
$632,940
$171,751
23%
$10,814
$418,020
5.5%
,st Present
Rates
$1,788,571
$2,915,211
$1,472,993
$725,973
$179,491
$10,594
$452,318
rercent
Piffereice
.
We note that Exhibit 6 indicates that net revenue requirements of $7,545,151 should be recovered
through sewer rates. This total reflects the City's current level of rate revenue, per the 2012/13 budget,
and therefore represents a "revenue neutral" level of rate revenue. However, as directed by City staff,
proposed rates will include the reductions indicated En Exhibit 6, but none of the increases. As a result,
total annual rate revenue is estimated to be approximately $7,34 million.
vLk
Page 5 Sewer Rate Study - City of Culver City
Prepared by NBS -June 26, 2012 RATE DESIGN AND PROPOSED RATES
The purpose of the rate design analysis is to determine how to collect fixed costs (La, base charges) and
variable costs (i.e. commodity charges) from each of the customer classes. The primary factor in
allocating rate revenue between these fixed and variable charges is the nature of the costs being
collected. That is, fixed costs should be collected from fixed charges, and variable costs should be
collected from variable charges.
Accurately allocating these fixed and variable charges improves the revenue stability of the sewer utility's
rates, because changes in variable usage, or water consumption patterns, will be accounted for in the
variable (commodity-related) charges. In other words, if overall water consumption dropped, the revenue
collected from commodity-related charges would change in proportion to the commodity-related costs.
A basic evaluation of fixed and variable costs indicates that approximately 63% of the sewer utility costs
are fixed and 37% are variable. Therefore, base charges and commodity rates should collect sewer rate
revenue from fixed and variable charges in roughly these proportions. NBS' analysis incorporates these
types of changes after 2012-13, rounding these percentages to 60% and 40% respectively.
The foilowing table summarizes the 201142 rates and rate revenue along with the adjustments to 2012-
13 sewer rates (note: this table reflects revenue requirements by customer class, but has made only the
reductions previously shown in Exhibit 6).
Sewer Rate Study — City of Culver City
Page 6
15
Prepared by NBS — June 26, 2012 2011-12 Sewer Rates
--
base Charges Coinmodity Rate
(Me)
121=IEEIZEI Base Charges Commodity Rate
2011-12 Annual Rate Revenue
Base Charges Commodity Rate Total Alma!
(Styr) ($/hcf) Revenue
Fiscal Year 2011-12 Sewer Rates and Rate Revenue and New 2012-13 Sewer Rates Incorporating COS Revenue •Requireme,nts
201243 Adjusted Sewer Rates
($/yr} ($1hcf)
$42,32
$42.32
$3.85
93,80
$3.78
$242 748 $1 545,523
$1758571
$463,850 $2 415,787
$2,879 417
$44,950
$1,395,070 $1,440,000
Exhibit 7. Existing and Proposed
Sewer Rates and Rate Revenue Reflecting COS and Rate
Design Adjustments
201213 Annual Rate Revenue
•BaseLliarges { Commodity Rate_ lotatAnnuat
(SNrk : 49.1hcf) Revenue
.
$42.32
$42.32
$42.32 ._
$42.32
$42.32
$42.32
$42.32 .,
$42.32
$42.32,
$42.32
$42.32
$42.32
$12,3_2
$42.32
$42,32
$42.32
$42,32
101 Striat, -Fmilx
102 Multl-amlly
200 Commercial/Business
300 Commercial/Restaurants
400 Inslikiiional
500 Schools/Public
501 Special
802 Special
603 Special
604 Special
805 Special
601.§Peqq--
4807 Spec?al
603 Special
609 Special
61051
812 Special
613 Special
614 Special
$3.85
$3.85
$3:85
$7.83
$3.75
$3.28
$4.10
$5.35
$5.35
$335
._$3,21
$5.55
_ $3.85 _
$4.93
$1177
$0.39
$0.39
$3.27
$242,748
$489 413
$45,980
$6,983
$2 412
$466
$254
$85
$42
$85
_ $42
$42
$42
$254
$42
$296
$42
$42
$1.„545 823
$2,445,798
$1,427,033
$718,990
$177,079
$10,129
$87,310
$70,674
$65,382
$75,555
$74 .093
$88,815
$189
$1,385
$2,360
$885
$636
$613
$2,609
EBEZ
$1,788,571
32,915 .211
$1,472,993
$725,973
$179491
$10 594
A 70,758
$85,425
$42,32
$41.80
541.57
$38.89 $6.65
$40.50 _ $3.59
$8,087
$2,308
$466
$235
$73
$39
$78
$195
$39
$39
$235
$39
$274
$39
$39
$628 1753
__.$189 443
$10,129,
$62206
. $60,425
$70,131
__$68,475
$82 081
$174
$1,280
$588
$568,
$2,412
$.91M40 .
$171,751
862,441
$65 393
960,484
$70 209
$52 120
$213
$1,319
$2,416
1 $862
9805
$2,451
770-,6118
$2.882
$42.32 $3.2e
$67,564 M .11 $3.79
$39.11
$39.11 $4.94
$75,970 $39.11 33.47
$74,305 $39.11 $2.97
$88,858 $39.11 14.84
$231 $39.03 $3.55
$1 428 s,3e.1 $4.55
$39.11
$927 312
3 7 : 3: 11
$0.36
$855 $ 3 3.3712 a $0.38
$ $3.02
P.-56
$0.71
Mr,M.
Sewer Rate Study City of Culver City
Prepared by NBS - June 26, 2012
Page 7 Exhibit 8 summarizes the proposed sewer rates for 2013-14 through 2016-16 that incorporate the cost-of-
service based changes necessary to accomplish the following objectives:
• Phase-in cost-of-service based rate increases to two customer classes (single-family and
Schools/Public accounts) over a three-year period.
• Increase all rates by 4% annually for 2013-14 through 2015.-16, as indicated by the financial plan
previously shown in Exhibit 2.
• Adjust sewer rates so they collect 60% of the revenue required from base charges and 40% from
commodity rates
Exhibit 8. Proposed Sewer Rates for 2013-14 through 2015-16
SlminlarY Of Proposed 2018-14 Through 2016-16 Sewer Rates ineOrpOr.sting COS Revenue Re clUireMe nts
Inctuding Rafe COS-Adjusted Allocations to Base Charges and Commodity Rates 1
2014:15
Customer Class
Base Commodity
Ch•arges lijir) Rates ;$/hcr)
Base • Carnreorlity
Charges ($4,r) Rates /13•17c9
ease commodity
Charges. 1"54/r) Rates (5/17cr;
22.1 ._sirisle-Family $254.24 $1.17 $264.32 $1.21 $274.80 $125
102 Mulli-Farni $202.97 $1.17 $211.48 $1.21 $220.42 $125
200 Commercial/Business $254.24 $3.30 $264.32 $3.43 $274.80 $3.56
SOO Commercial/Restaurants $254.24 $6.54 $264:32 $6,80 1274.60 $7.07
400 institutional $25424 $3,45 5264.32 $3.61 5274.80 $3.76
500 Schools/Public $254.24 $2.67 $264.32
;
$2.75 $274.50 $2.59
601 Special $25424 $3.56 5264.32 $4.02 $274.80 $4.18
6025. 'al $254.24 $5.11 $264.32 $5.31 5274.80 $5.53
603 S. ecial $254_24 $5.12 $264.32 $5.33 $274.80 $5_54
604 Special $254.24 53.56 $264.32 $3.73 $274.80 $3.88
605-Special $254.24 $3.04 $264.32 53.16 $2 4.60
606 Special $254.24 $5.13 $264.32 55,35 5274.80
-
55.55
607 Sped's! $222.00 $0.00 $230.00 $0.00 $240.00 t $0.00
608 Special $25424 $3.95 $264.32 $4.14 $274.80 54.30
600 Spedal $254.24 $1.61 $264.32 $1.68 $274.80 $1.74
610 $ edal
$254.24 50.55 5264.32 I $0.58 $274.80 $0.60
612 Special $128.07 $0;00 $133.19 $0,00 $138.52 $0.00
613 Special $254.24 $0.24 $264.32
,
$0.25 $274.80 $0.26
814 Special $254,24 $2.68 $264.32 $2.99 $274.80 53.11
1.
The base charges reflectrasidenbal classes and collect 30% of all sewer rate revenues; commodity charges collect 40%.
The overall sewer rate revenue collected from each customer class matches the cast-of-service revenue requirements.
2. Multi-familyt ase charges are 80% of Single-Family base charges based on the differences in per unit water
consumption. Multi-Family commodity ratesare also adjusted ta meet the revenue requirements Far this class.
Sewer Rate Study - City of Culver City
Prepared by NBS - June 26, 2012
Page 8
11 CONSULTANT RECOMMENDATIONS
Based on the results of this study, NBS recommends the City consider the following actions:
•
Adopt this rate analysis as the basis for adjustments to the City's current sewer rates.
• Adopt a five-year financial plan, as summarized in Exhibits 2 through 4, as the "road map" for the
Utility's financial management and cash management of reserves through 2016117.
• Adopt the minimum target reserve fund balances as shown in Exhibit 4 and accumulate cash
funds in excess of these targets into the Capital Rehab and Replacement Reserve with the intent
of cash-funding planned copal improvements.
• Adopt and implement the proposed sewer rates shown above in Exhibits 7 and 8. This should not
require a Prop 218 protest balloting process for the 201243 rates, but will necessitate a Prop 218
process each year thereafter in order to adopt and implement the recommended rates.
PRINCIPAL ASSUMPTIONS AND CONSIDERATIONS
In preparing this transmittal and the opinions and recommendations included herein, NBS, has relied on a
number of assumptions and considerations with regard to financial matters, conditions, and events that
may occur in the future. The information and assumptions, including the Utility's budgets and information
from Utility staff, were provided by sources we believe to be reliable.
While we believe the use of such information and assumptions is reasonable for the purpose of this
transmittal, some assumptions will invariably not materialize as stated herein and may vary significantly
due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary
from those projected to the extent that actual future conditions differ from those assumed by us or
provided to us by others. Given that, the Utility should closely monitor future revenues, costs and capital
plans to determine any significant variances from the results shown in this report and take appropriate
management and City Council action to reconcile differences as needed.
Sewer Rate Study— City cif Culver City
Page 9
Prepared by NBS —June 26, 2012 SEWER RATE STUDY APPENDIX A
SELECTED TABLES FROM THE FINANCIAL PLAN
AND REVENUE REQUIREMENTS ANALYSIS Projected
FY2013(14 FY2014115 FY2015116 FY2016117 FY2017/16 FY201 .619 FT2019120 FY2020121 FY.,2021/22.
RATE REVENUEREQUIREMENTS SUMMARY
Sources of Sewer- Funds
Rate Revenue Under Prevailing Rats
Industrial Waste Inspection Fees
Interest Earnings
Total Sources of Funds
Uses of Sewer Funds
Operating EK44113 es:
Personnel Services
Maintenance and Operations
Su btotal :.Operati ng Expenses
Other Expenditures:
EstIng Debt Service
New Debt Service
Rate-Funded Capital Expenses
Total Uses of Sewer Funds
Budget
FY 2012113'
3 7,340.661
- 70,000
202,000
$ '7,612,661
$. 1,387,370
4,491,106
$ 5,858,475
$ 7,466,276
$ 7,340,861
70,000
150,000
$ 7,660,661
$ 1,394,717
4,815,687
$ 6,210,405
$ 7,1316,905
$ 7,340,661
70,000
160,000
$ 7,560,661
$ 1,422,612
4,e7a,457
$ 6,o9e,0$9
$ 7,699,069
$ 7,340,661
70,000
18o000
$ 7,680,661
$ 1,451,054
4,881,332
$ 6,332,396
482 386
3 8,423,082
$ 7,340,661
70,000
150,1300
$ 7,560,661
$ 1,480,085
5,029,487
$ 6,509,672
$ 8,116,222
I 7,340,661
70,009
150,000
$ 7,660,661
$ 1,609,687
5,182,626
•
6,692,312
$ 8,298,626
$ 7,340,661
70,000
150,000
$ 7,560,661
5 1,539,881
5,340,922
$ 6,860,810
$ 8,488,022
$ 7,340,661
70,000
150,000
$ 7,680,661
$ 8,679,351
$ 7,340,661
70,000
160,000
$ 7,340,661
70,000
150,000
$ 7,860,681 $ 7,660,601
1 $ 1,570,678 $ 1,602,092 $ 1,63-4,134
5,604,585 5,673,787 5,848,738
$ 7,075,283 $ 7,275,879 3 7,482,572
$ 1,696,800 $ 1,605,200 $ 1,603,000 $ 1,008,300 $ 1,605,650 3 1,606,213 $ 1,607,213 5 1,1394,088 3 1,503,835) $ 1,605,338
Forecasted Surplus (Deficiency) before Rate Increase
Total Revenue Deficiency
increase/peon:lase) to Resetves •
Less: Revenue from Prior Rate Increases
Net Revenue Deficiency
Calculation of Required Ralf) increaaes
Rate Revenue with No Rate Increase
plus: Revenue from Prior Rate increases
Total Rate Revenue Before Rata Increase
Cumulative tricrease from Annual Rate Increases
$ 147,386
5 7,340,661
7,340,661
0.00%
$ (264,944)
254,944
2,621
251,666
$ 7,340,661
$ 7,340,691
4,00%
$ (138,408)
$ 1 118,408
$ 276,824
$ (1$8,408)
$ 276,824
$ 7,340,661
298.626
$ 7,634,267
8.16%
$ (862,421)
862,421
87,709
(598,998)
330,632
$ 7,340,061
598 .998,
$ 7,93%459
$ (554,661)
$ 554,581
(554,5611
$ 7,34401
916.984
9 8.267,246.
12.49%
$ (737,864)
$ 737,864
$ (737,8641
12.49%1
$ (927,361)
$ 927,361
$ (916,564)
$ 10,777
12.49%
$ (1,118,690)
$ 1,118,690
-
$ (918,584)
$ 202,105
$ 7,340,661
016,584
$ 8,257,245
14.74%
$ 1,319,056
$ (1,081,729)
$ 237,326
$ 1,527,548
$ (1,334,401)
$ 193,147
$ 7340,801
1,334,401
$ 8,676,052
$ 7,349,661 $ 7,340,601
016,584 816.584
9,257,245 $ 5,257,246
$ 7,340,661
1.001729
$ 8,422,390
IMPAIterValf WM.741.143MiMaj
18.18%
20.54%
5 8,879,716 1 $ 9,088,209
$ (1,319,066) $ (1,627,548)
Impacts of Rate Increases
Rate ReVenues After Rate Increase 2
Net Cash Flow After Rate Increase
Coverage After Rate Increase
$ 7,340,661
147,388
1.09
$ 7,702,828
mem
1,02
$ 8,008,222
460,590
1.29
$ 8,325,831 I $
54,163
1.33
8,325,831
362,023
1,23
$ 8,325,831
178720
1.11
$ 8,325,831
(10,777)
0,99
8,492,348
mom
0.98
$ 8,747,118
15,345
1.01
$ 5,922,061
(19,646)
0.99
1. In this iteration of the analysis, the rate increases targets Mal cash reserve balance of $4.5 million at the and of FY 2015118.
2, Refer lo Cost of Service Analysis for detailed calculakns.
Appendix A
Sewer Rate Study - City of Culver City
Prepared by NIBS -June 26, 2012
A-1 FY2018119 FY2019/20 } 'FY2020.121 I FY2021122
Projected
FY2016/17 FY 20117118'
SOURCES & USES OF FUNDS FOR
ExISTINGCAPITAL weeps
SOurcos of Capita, Rends
Grants
State Revolving Fund Loan
Revenue Bond
Surplus Capital Reserve
Rate Revenue
TOtalSOuroes of Capital Funds
Uses of Capital Funds
Funding of Capital Evenditures (ExiSting Needs)
Total Uses of Capital Funds
733 P= Trattreter gaiM .
udget
•FY2012113 MEEKER]
$ 4,076,472 $ 3,300,000 $ 3,200,000
$ 4;O76. $ 3,800 000 $ 3,200,000'
$ 4,076,472 . $ 3,300,000 $ 3,200,000
:alrOgRAWAREICE
FY2014115 FY-2015116
4,076,472 3,300,000 3,200,000 2,717,614
482.$80 I
Appendix A
A-2
Sewer Rate Study — City of Culver City
Prepared by N BS — June 26, 2012 CAPITAL IMPROVEMENT PROGRAM
FY2012/13
FY 2013114
FY 201.4116
FY 2015116
Sewer Main Rehabilitation Project
Sewer Main Point Repair, Manhole Rehabilitation, and Sewer Video
Sewer Pump Stations Improvement P-521
Jasmine Second Force Main Project
Overland pipeline diversion (Construction)
Hayden second force main Project
2nd force main Braddock connection to Los Angeles
New PUM p Station Selmaraine
New pipelines to divert Mesmer
New siphon at sewer convergences at Culver/Madison
Upsim Duquesne Sewer Pipe to 21 inch from Lucerne to Jefferson
Financial System Replacement/Enhancements
• 3,000,000
100,000
100,000
100,000
500,000
100,000
150,000
- S 26,472$
100,000
200,000 $
3,000,000 $
rs
$
100,000 $ 100,000
100,000 $ 100,000
$
$
3.000,000' $ 3,000,000
ESM321 EMr19
Appendix A
Sewer Rate Study — City of Culver City
Prepared by NBS —June 28, 2012
A-3 Operating Reserve
Beginning Res Eine Balance '
Plus: Net Cash Flow (After Rate increases)
Plus: Transfer of Debt Reserve Surplus
Less: Transfers Out to Capital Replacement Reserve
Ending Operating Reserve Balance
TergetEndin Balance 25%•or 90 de a of 08
2 ZIAZEINEZA
Capital Rehab & Replacement Reserve
Beginning Reserve Balance 1
Plus: Net Debt Proceeds
Plus: Transfer of Operaling Reserve Surplus
Less: Use of Reserves for Capital Projects
Ending Repair & Replacement Balance
Target Endin . n Balance 3% of Assets
WLL 1:1 -k:,k1.CiF-7:5c-fk: -itkile;;:V,Et6:*,&;trcMidke.aatEw'aaTM.
$ 1,250,000
$ 10,187,340
$ 1,360,000
$ 4,127,614
$ • 1,370,000
$ 1,723,186
$ 1,330,000 $ 1.290,000 $ 1,250,000
$ 1,855,907 $ 1,855,907 $ 1,855,907
$ 1,210,000
$ 1,855,007 7
$ 1,180,000
$ 1,855,90
:
.3 1,410,000
$ 1,410,000
$ 1,310,000
$ 8,887,340
Debt Reserve
Beginning Res en* Balance '
Plus: Resertre Funding from New Debt Obligations
Lass: Transfer of Surplus to Operating Resarva
3 1,608,838 3 1,608,838
1
$ 1,808,838 $ 1,608,838 3 1,608,838
3 1.,608,838 3 1,608,838 $ 1,806,838 $ 1,808,838 $ 1,608,838
Ending Debt Reserve Balance
Target gnu& g Balance
tearMrak ktet,
$ 1,808,838 $ 1,608,838 3 1,608,838
$ 1 608 $38 $ 1,608,838 s. 2A0A,s t38
Debt Covers a Ratio (After Hate increase
1.09
1.02
ttersi- t-A
S- g,gtif,B-8,1 3-- Ell
0:98
Recommended T77U U733'1177 Ite! Feeettrv rvina ii $ 4,471,33a 4,462,838 $ 4,601,838
- -,:;74 -7=7,•=4.--
2.311_231W---206 ,-2,6141
SWIM RY OF CASH AOTIVITY
FY2012113 FY2013/14 FY2014115 F1'2015116
Total Estimated Beginning Cash
$ 17,190,264
Projected
-,
FY2016/17 I FY2017118 I FY2018/19 I FY2019/20 1 FY2020121 FY 2021/22
111.1111.111.11
$ 1,578,163
362,023
(313,186
$ 1,627,000
178,720
132,720
3 1,673,000 $ 1,862,223
(10,777) (36,960)
.$ 1,625,263 1 $ 1,640,808
15,345
$ 1,627,000
$ 1,627,000
$ 1,672,000
3 1,673,000
3 1.462,223
$ 1,720,000
3 1,625,263
$ 1,789,000
$ 1,840,608
$ 1,819,000
$ 1,620,962
$ 1,871,000
$ 1,455,000
$ 1465,000
$ 1,603,683
$ 1,553,000
440,273)
$ 1,624,000
$ 1,524,000 •
$ 1,524,000
54,163
$ 1,578,163
$ 1,583,006
$ 1;479,650 $ 1,4615,000
147,366 38,883
1
162,036
3 8,867,340 $ 4,127,614 3 1,410,000 $ 1,723,186 1455,507 3 1,855,907 $ 1,855,907 $ 1,856407
440,279
313,186 132,720
(3,200 000 2,717,614
$ 1,608,838
$ 1,609,83e
$ 1,608,838
$ 1,603,838
$ 1,608,838
$ 1,608,858
$ 1,608,838
$ 1,608,838
$ 150,883
48.0,880
$ .14,101,778
162,036
4,076,472 3,300,000
I 10,187,340
Total Minimum Reserves Recommended in this study: 25%, or 90 days of O&M expanses plus 3% of Net Assets, plus the debt reserve requirement Web is equal to the may mum annual debt service payment.
For reference purposes, the t otal Minimum Reserves Per Existing CftyPolicy: 70% of annual operations budget, plus two years Of dab! service payments, plus the annual capital Improvements budget.
1. For purposes of this analysis, ills assumed that available cash can be deposlteorinto distinct Operating, Capital and Debt Reserve Funds. Accordingly, the total beginning oaSh balance of $17,190,264 has
been segregated as fellows: $1,479,650 has been assigned as the beginning cash balance In the Operating Fund, $14,101,776 has been assigned A& the beginning cash balance in the Capital Reserve
arid $1,608,838 has been assigned as the beginning Debt Reserve balance. No fund ha ve been assigned to the Developer Impact Fee Fund, because the Cifr has no funds set aside for this fundcurrently.
Appendix A
A-4
Sewer Rate Study City of Culver City
Prepared by NBS — June 26, 2012 SEWER RATE STUDY APPENDIX B
SELECTED TABLES FROM THE COST-OF-SERVICE ANALYSIS Total (VOL)
it rSS) mi CA)
irt( --A.M.:MIZEST,StattOSAVIE-MN'
$7,193,275
$7,545,151
1.0469
ClassitIntion cif P.x.papsas
Budget Categories
Total 13 wienttQ
Requirements
ILIUM
tam)
Strength
C0stomer
.0" ,c1trat
{CA) wow
ksis I a Seifieetien
19001 I (TSS)
MEE
&431
126.904'
1,750
5,387
1,914
9,87
29207
2,780
1489$
22,673
700
2998
302
75
510
263,963
7,600
.4,774
3,829
19,764
40,415
.5,559
20,705
45,348
1,560
4,792
Regular Salaries
Part-Time Salaries
Overtime Pay
Deferred Compensafion
Social Security
Retirement
Deferred Retirement
Workers Ccropensalion
Group hsurance
Retiree Health SaAngs
Retiree insurance
Retiree Medical Pre-funding
Stale Disabliity nsurance
Reath Benefits
Longevky Pei
Uniform Allowanos
846,544
25,000
15,912
12,763
65,847
134,715
18,530
99,256
161,154
5,200
15,973
3,400
2,546
50D
330,618
10,000
6,365
5,105
26,339
53,886
7,412
27,714
60,462
2,080
6,369
1,018
200
1,180
3,750
2,367
1,914
9,817
23,207
2,780
10,393
22,673
780
5,305
382
75
5/0
764
150
1,020
$ 205,105 266106 $ 410,211
Office Expense
PrintingS Singling
Postage 6 DpliVrdy
COMMIlniCatiOnS
Utilities
Departmental Sper4s1SUppllea
Small Tools 8. quiprrtent
Training & Education
Conferences & Conventions'
SPeOial venla& Meetings
Memberships 8, Dues
Contribulions:to Agencies (1)
RUA -Equipment
Gsrage Expenses
Rental of Land
Amortization of Erpipment
Mad Services -13MV Certificate
ivied Services - Special Examine
Refuse Oise Services- Other
Other Contractual Services
Inscrave Premium s - Other
Uatety Reserve Charge
Depreciation
knprovements olhorthan Bldg,
Auto- Stook & Equipment
fl Equipnlent- ilardWare
Adminishaive Charges
Total hleintenaince 8:Operations
Toler Operating Expenses
Ailocatfon of Dv:relating 011113rilaa
1,000
2,000
10,000
7,100
76,000
30,310
10,000
6,690
3,400
3,509
2,000
2,272,000
88sioo
95,000
360,003
33,412
400
733,316
7,680
26300
1,272,320
35,209
38,030
324,000
30,071
-
65,400
27,279
9,000
522,560
13,209
14,250
477,120
13,200 .
14,250 28,503
36,000
3,341
40
73,332
768
2,830
1,000
2,000
10,000
7,100
7,600
3,031
1,000
6,690
3,430
3,500
2,000
26,400
$ 2,585,556
$ -1,03.604
53%
77555 5""
$ 504,570
$ 709,676
12%
049,1
$ 1,269,1
2
LAW jillroll&L-ari `;'40111 , _ fAtIZ.111U . '"•:.
2009 SeriesA Reienue Bonds:
r4MNINOOMIEGETIL
401,700 5
NET REVENVE Rd RESENTS
Afio . citroi2 Of Roieenue hequirem ems
Less Non-Rate Revenues
(less) hductrial Waste inspection Fees
(less) Merest Earnings If lal |1010|13 .276 . . 3179 17 51 1 12t 7.57 . 1 1078426
idoi.; /3% •18' . % 1"5il I
:77 711--442 .2
nn 11901111, 41H1
(L00(t2 t ) 2)
((6600
17%
Classification of Expenses {cont.)
Adjustments to Classification of Expenses
Adjustn lent for Current Rate Level
2013 Net Revenue Requirement
Current Level of Rate Revenue
Adiustment Factor
1. Estimated Volumetric, BOWIES strength factors are from the Gibes 2003/04 E5nee1's Report {Tate 4).
B-1 25
Appendix B
Sewer Rate Study - City of Culver City
Prepared by NBS - June 26, 2012 100
Institutional
500 Schools!
Public
; 600
commercial/
. Hotels
$113,140 $7,444 32513,430
$1,273
$1.053
$1,043
40
$84,956
$71,316
$3,310
$0
$37,194
$16,011
$5,4136
$0
Mocation of Revenue Requirements
IC=
$ 3,976,986 $862,013
1,176,630
1,131,180
1.260,354
Volume
Treatment
-DOD
- TSS
Customer-Related
Direct Assignment
tita.
$246,676
$239,608
$544,013
$0
$1,522,095
$390,290
$379,107
$587,925
$0
200
Commercial!
.18usiness
$227,720
$221,195
$102,998
$0
• 300
Commercial!
Restaurants
3188,523
$202,890
$15,649
$0
Net Revenue
Requirementst
Ctassificatkm Cottipoileutu
101 102
Siittglo.:Farnity Erluiti-Famtly
.,zza,1155;r71
;
ANN
5688,087 5225,777
1. These rewnue requirements haw been adjusted to meet the Clty's.cunent revenue collected from sewer rakes.
Appendix B
Sower Rate Study — City of Culver City
Prepared by NBS — June 26, 2012 Proposed 2012-13 Sewer Rate Revenue Base and Commodity Charges
No. of Parcels/
Dwelling Units
Nowl3as e
Charges
Adjusted 2(110
Consumption New Re
Annual Rate Revenue
New Base •ommodity fotai Annual
Charges. Charges 1 Revenue
Target Rev. Recite
Current Rate
Revenue vReqts
101 Single-Family'
102 kluitl-Farnill
200 CernmercialtitsIness*
300 Cornmercial/Reslaummts*
400 institutional*
500 Schools/Public*
„
$42,32
$41.60
$41,37
$36.89
$40.60
$42.32
401,513
655,272
370,658
94,232
47,221
3.107
$3:85
$3.80
$3.76
$8.85
$3.59
$3.26
$242,748
$463,650
$44,930
$6,087
$2,308
$466
$1,545,825
$2,415,767
$1,396,070
$625,753
$169,445
$10,129
$1,788,571
$2,879,417
$1,440,000
$632,840
$171,751
$10,594
: $2,879,417 1
$1,440,008,
$632,840.
$171,751
firffilTFYV
klx14.4"-
%Vag d
801 Special*
602 Special*
003 Special'
604 Special*
606 Special*
606 SpeClar
607 Special*
808 Special*
609 Special*
610 Special*
612 Special*
613 Special*
614 Special*
$39.11
$39.11
$39.11
$39.11
$39.11
$39.11
$39.03
$39.10
$39.11
$39,12
$39.11
$39.09
$39.12
18,417
13,210
12,221
20,236
23,082
16,601
49
281
613
1,149
1,632
1,571
798
$3.79
$4,94
$4.94
$3.47
$2,97
$4.94
$3.55
$4.55
$3.56
$0.71
$0.36
$0.36
$3.02
$235
.$78
$39
$78
$196
$39
$39
$39
$235
$39
$274
$39
$39
$e2,205
$65,315
$60,425
$70,131
$68,476
$82,081
$174
$1,280
$2,181
$588
$568
$2,412
$62,441
$65,393
$60,464
$70209
$66,871
$82,120
$213
$1,319
$2,416
$857
-$862
$605
$2,451
$62,441
$85,383
$60,464
$70,209
$58,6711
$82,120
$213
$1,318'
$2,415
$605:
$2,451'
* Parcels. • Dwelling Unifs.
1. Adjusted for irrigetkm factors.
2. Cost-01,361+10 .(COS) audysis
',ideates some classes should be induced The 6 Tergef Rev, Redts" are the lessera Const or COS Revenue Requirement (h are iighlighted in yellow).
Appendix B
Sewer Rate Study - City of Culver City
Prepared by NBS - June 26, 2012
B-3 11:21
614 Special
607 Special
608 Special
609 Special
613 Special
602 S ecial
603 Special
604 S cial
605 Special
606 Special
601
300 Commercial/Restaurant
400 Institutional
500 Schools/Public
200 Corn Mercial/Business
Existing 2011-12 Sewer Rates and Rate Revenue
Sewer Rates
101 Sin Family
102 Multi-Fam II
ecial
Customer Class
Base Charges! Commodity
($1yr) Rate ($/hcf)
$42.32
$42.32
$42.32
_$42.32
$42.32
$42.32
$42.32
$42.32
$42.32
$42.32
$42.32
$42.32
$42.32
$42.32
$42.32 $3.85
$3.85
$7.63
$3.75
$3_26
$4.10
Base
Charges
$242,748
$469,413
$45,960
$2,4121 $177,079
$466 $10,129
$6,9831
$85
Annual Rate Revenue
$1,545,823
$2,445,798
$1,427,033
• $70,674
$65,382
$75,885
$74,093
$88,815
$718,990
$67,310
$2,609
$189
$1,385
$2,360
$885
$636
$613
Total Annual
Revenue
$1,788.,571
$2,915,211
$1,472,993
$725,973
$179,491
$10,594
$67,564
$70,758
$65,425
$75 970
...--a.--
$74 F5
$88,858
$231
$1,428
32,614
$927
_
$933
Appendix B
B-4
Sewer Rate Study— City of Culver City
Prepared by NBS — June 26, 2012 New 2012-13 Sewer• Rates Incorporating COS Revenue Requirements
Adjusted l Sewer Rates
Base Charges I Commodity Rate
Annua c lom Rarnci te oR i:venue
Base I Total Annual Rates
Charges Revenue
Customer Class
Singleff:Lnify
102 lir _t_____ Nti-FornaL_____
200 Commercial/Business
300 Commercial/Restaurants
400 Instil:Vona!
500 Schools/Public
601 Special
602 Special
603 Special
604 Special
605 Special
505 Special
607 Special
608 Special
609 Special
510 Special
612 Special
613 S_pecial
614 Special
$42.32
$41.80
$41.37
$36.89
$40.50
$42.32
$39.11
$39.11
$39.11
$39.11
$39.11
$39.11
$39.03
$39.10
$39.11
$39.12
$39.11
$39.09
$39.12
$3.85
$3.80
$3.76
$6.65
$3.59
$326
$4.94
$4.94
$3.47
$2,97
$4.94
$3.55
$4.55
$356
$0.71
$0.36
$0.38
$3.02
$242,748 $1,545,823
3463,650 $2415j
$44,930 $1,395,070
$6,087 $626,753
$2,308 $169,443
$466 $10,129
$235 $62,206
$78 $65,315
$39 $60/425
$78 $70,131
$196 $68,475
$39 $82,081
$39 $174
$39
$1,280
$235
$2,181
$39
$818
$274
$588
$39
$566
$39
$2,412
$1,788,571
$2,879,417
$1,440,000
$632,840
$171.751
$10,594
$62,441
$65.,393
$60,464
$70 209
$68,671
$82,120
$213
$1,319
$2,416
$857
$862
$605
rt
61' 6
:
1. Adjustments to base charges and commodity rates were made to generate the Target Revenue Requirements,
including reductions in most customer classes based on Me cost-of-service analysis results.
Appendix B
Sewer Rate Study - City of Culver City
Prepared by NBS - June 26, 2012
B-5
2.°1 604 Special
605 Special .
607 Special
608 Special
609 Special
610 Special
612 Special
613 Special
614 Special
602 Special
603 Special
102 Multi-Family
200 Commercial/Business
300 Commerciaf/Restaurants
400 Institut on.al
Projected Sewer Revenue Requirements -
Including Rate Increases and COS'. Adjustments to Single -Family and Code 500 Customers
Customer Class
One-Third of COS
Total Annual '11- pr . pl tit
12 Rate Revenue .4"
Adjustmentl
af d, -
$2,879,417 NA
$1,440,000 NA .
$632,840 NA
$1,788,571
$171,751
ff11
$1,319
$2,416
$857
$862
$62,441
$65393
$60,464
$67,913
NA.
NA.'
N.A.
NA.
NA
NA
$73
NA.
NA
ALA.
NA.
NA
NA,
N.A.
$1,928,027
$2,994,594
$1,497,600
$658,154
2013-14 2014-15
$178,621
$11,091
$64,939
$68,009
$62,883
$73,017
$71,418
$85,405
$222
$1,372
$2,513
$891
$896
$629
$2,549
Total Annual Rate Revenue
$1,557,504
$684,489
$185,766
$11,532
$67,536
$70,729
$65,398
$75,938
$74,278
$88,821
$230
$1,427
$2,613
$927
$932
$654
$2,651
$2,079,812
$3,238,953
$1,619,804
$711,859
$193,197
$11,990
$70,238
2015-16
$78,976
$77,246
$92,374
$240
$1,484
$73,558
$68,014
$2,718
$2,757
$964
1. This is added to the revenue requirements for these class in each of the next 3 years_
Appendbc
8-6
Sewer Rate Study - City of Culver City
Prepared by NBS - June 26, 2012 proposed •2013-14 Sewer Rates Incorporating COS Revenue Requirements
Including Rate COS .Adjusted Allocations to Base Charges" and Commodity Rates
Ease
Charges 1
f$A1r)
From Rase 1From Commodity
Charges / Rates
Tot,alAnnuarRate Revenuel
Total Annual
Revenue'
500 Schools/Public
601 Special
602 Special
603 Special
604 Special
605 Special
606 Special
607 Special
608 Special
609 Special
101 Single-amily $254.24
102 Multi-Family4 $202.07
200 Commercial/Business $254.24
300 Commercial/Restaurants $254.24
400 Institutional $25424
$254.24
$222.00
$25424
$25424
$254.24
$254.24
$254.24
$254.24
$25424
$254.24
$3.58
$3.04
$5.13
$0.00
$3.98
$3.86
$5.11
$5.12
$1.17
$1.17
$3.30
$6.54
$1,458,327
$2,251,326
$276,106
$41
$14,4921 $164,129
$2,7971 $8,294
$1,5251 $63,414
$5081 $67,501 $68,009
.950
$469,7D0
$743,268
$1,221,494
$616,204
$1,928,027
$2,994,594
$1,497,600
$178.621
$11,091
$64,939
$658,154
610 Special
612 Special
613 Special
$254.24
$128.07
$254.24
$254.24
$0.24
$2.88
$0.55
$0.00 $896
$254
$254
$637
$0
$375
$2,295
1. The base charges reflect residential classes but are adjuste to overall collect 60% of alt revenues.
2. Commodity charges am individually adjusted for each customer class to m eet COS revenue requirements.
3. The total rate revenue collected from each customer class are the cost-of-service (COS) revenue requirement.
4. Milti-Family base charges are 80% of Single-Family base charges based on the differences in per unit water
consumption. Multi-Farnily commodity rates are also adjusted to meet the revenue requirements kr this class.
. 9 0,0°01X
Sewer Rate Study - City of Culver City
Prepared by N BS June 26, 2012
8-7
'3 1 Customer Class
101 Single-Family
102 Multi-Fain 11y4
200 Commercial/Business
300 COM mercial/Restaurants
400 Institutional
500 Schools/Public
601 Special
602 Special
603 Special
604 Special
60552291.91____L_
606 Simeial
607 Special
608 Soecial
609 S oecial
610 Special
612 Special
613 Special
614 Special
Base
Charges 1
($/yr)
$264.32
$211.48
$264.32
Proposed 2014.15 Sewer Rates Incorporating COS Revenue Requirements
Including Rate COS-A ((lusted AllOCatiOrIS to Base Charges and Commodity Rates
I Commodity
Rates
2
0410)
$1.21
$1.21
$3.43
$264.32 $6.80
$3.61
$2.78
$4.02
$5.31
$5.33
$3.73
$3.16
5 $.33
$0.00
$4.14
$1.68
$0.58
$0.00
$0.26
$2.99
Teta I Annual Rate Reverme 3
1 From I
From Base Total Annual
I Commodity
Revenue
3
Charges '
Rates
2
$486,285 $2,002,431
$2,345,691 $768,679 $3,114,377
$287,053! 70,451 $1,557,504
$43,6131 $640,8671 $684,480
$15,066 $170,7001
$2,908 $8,624
$185,766
$11,532
$1,586 $65,950
$67,536
$70,729
$529 $70,200
$65,398
$264 $65,134
$529
$75,409 $75,938
$1,322
$72,953
$264
$88,557 $88,821
$230 $0 $230
$264 $1,163] $1,427
$1,586 $1,027 $2,613
$264
$663 1
$927
$0 $932
$264;
$390 $654
. $2641
.$2,3871 $2,651
$264.32
$264.32
$264.32
$264.32
$264.32
$264_32
$264.32
$264.32
$230.00
$264.32
$264.32
$264.32
$133.19
$264:82:
$264.32
$1 516,146
las Ego No
' 18'
0.!
1. The base charges reflect residential classes but are adjusted to overall collect 60% of all revenues,
2. Commodity charges are individually adjusted for each customer class to meet COS revenue requirements.
3. The total rate revenue collected from each customer class are the cost-of-service (COS) revenue requirement.
4. Multi-Family base charges are 80% of Single-Fernily base charges based on the differences in per unit water
consumption, Multi-Family commodity rates are also adjusted to meet the revenue requirements for this class.
Appendix B •
B-8
Sewer Rate Study - City of Culver City
32-
Prepared by NBS - June 26, 2012 Total Annua Rate Revenue 3
From Base From
Charges
1 Commodity
Rates 2
Commodity
Rates2
(SAO
$125
$3.56
• •
57.67
$3.76
$2.82
$4.18
$5.53
$6.64
$3.88
$329
$5.55
$0.00
$4.30
$1.74
ElICALZ
..I - ' i.'
236
Proposed 2016-16 Sewer Rates incorporating COS Revenue Requirements
Including Rate COS-A dju,sted Allocations to Base Charges and Commodity Rates
Customer Class
$1,576,276 $503,5361 $2,079,812
$2,444,863 $794 0901 $3,238,953
$298,437 $1,321,367! $1,619,804
$45,343 $666,5161 $711,859
$15,664 $177,533 $193,197
$3,023
.1
$8,9671 $11,990
$1,649 $68,589 $70,238
$560 $73,008, $73,558
$275 4 $67,7391
$78,426 ,
$68,01
$550 $78,976
$1,374 $76,372 $77,246
$275 $92,099 ( $92,374
$0 $240
$1 42091, $1,484
$1.649
$1-065i
$2,718
101 Single-Famil
102 Mult-Fami
200 Commercial/Business
300 Commercial/Restaurants
400 Institutional
500 Schools/Public
62:3Szec ial
602 Special
603 Special
604 Special
605 Special
606 Suede]
607 SE ecial
608 Special
602 Special
610 Special
612 Special
613 Special
614 Special
$274.80
$274.80
$274.80
$274.80
$274.80
$274.80
$274.80
$274.80
$240.00
$274.80
$274.8.0
$274.80.
$138.52
$274.80
$274.80
$0.60
$0.00
$0,26
$240 $240
$275 $275
$6821 $26_4
$01
$970
$4061 $681
$2,757
$275
$970
$275,
$2751 $2,482;
/1.t 11
II
=MIN
CVO
1. The base charges reflect residential classes but are adjusted to overall collect 60% of all revenues.
2. Commodity charges are individually adjusted for each customer class to meet COS revenue requirements.
3. The total rate revenue collected from each customer class are the cost-of-service (COS) revenue requirement.
4. Multi-Family base charges are 80% of Single-Family base charges based on the differences in per unit water
consumption. Multi-Family commodity rates are also adjusted to meet the revenue requirements for this class.
13-9 Appendix B
Sewer Rate Study - City of Culver City.
Prepared by NBS - June 26, 2012
33 ALLOCATION OF OPERATING EXPENSE FORECAST':
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
75%
100%
100%
100%
100%
75%
100%
100%
100%
100%
100%
100%
100%
100%
100%
1 .00%
100%
100%
100%
411100
411200
411300
431000
432000
433000
433500
434000
435000
435400
435500
436000
437000
440000
512100
512200
512299
512400
513000
514100
514600
516100
516500
516600
516700
517500
600200
600800
605200
605400
614600
619800
650200
650300
732100
732150
670100
Regular Salaries
Part-Time Salaries
Overtime Pay
Deferred Compensation
Social Security
Retirement
Deferred Retirement
Workers Compensation
Group Insurance
Retiree Health Savings
Retiree Insurance
State Disability Insurance
Health Benefits
Uniform Allowance
Office Expense
Printing & Binding
Postage & Detively
Communications
Utilities
Departmental Special Supplies
Small Tools & Equipment
Training & Education
Conferences & Conventions
Special Events 8, Meetings
Memberships & Dues
Contributions to Agencies (5)
R&M - Equipment
Garage Expenses
Rental of Land
Amortization of Equipment
Med Services - Special Examina
Other Contractual Services
Insurance Premiums - Other
Liability Reserve Charge
Auto - Rolling Stock & Equipment
IT Equipment - Hardware
Administrative Charms
546,544
25,000
15,912
12,763
66,847
134,715
18,530
.69,286
151,154
5,200
15,973
2,546
500
3,400
1,367,370
1,000
2000 ,
10,000
7,100
76,000
30,310
10,000
6,690
3,400
3,500
2,000
2,272,000
88,000
95,000
360,000
33,412
400
733,316
7,680
28,300
43,900
21,613
655A84
846,544
25,000
15,912
12,763
65,847
134,715
18,530
69,286
151,154
5,200
15,973
2,546
500
3,400
1,000
2,000
10,000
7,100
30,310
10,000
6,690
3,400
3,500
2,000
Total: Personnel Services
100%
58,000
95,000
360,000
400
549,987
7,630
28,300
43,900
21,613
491.613
76,000
$
$ 2,272,000
163,871
1,606,800
Wio used on* trteyOuple ttte Iotaf percentage ctf po,ste Mat arfJxfv&V,eriattley fee t- 5 1p.-cle$igrk prknoqw:
Appendix B
B - 1 0
Sewer Rate Study City of Culver City
Prepared by NES - June 26, 2012 Development of the Volume• Allocation Factor
101 Single-Family
102 Multi-Family
200 Corn mercialiBusiness
300 Commercial/Restaurants
400 Institufional
500 Schools/Public
600 Commercial/Hotels
Customer Class
692,263
747,379
370,658
94,232
47,221
3,107
107.860
33.6%
' 36.2%
18.0%
4.6%
23%
0.2%
5.2%
401,513
635,272
370,658
94,232
47,221
3,107
107,860
435,675
689,323
402,195
102,250
51,239
3,371
117.037
Percent of
Adjusted Vol.
24.2%
38.3%
22.3%
5.7%
2,8%
0.2%
6.5%
Target Tote (cct):
Ava Annual Culver City Flow4 (MGM
1. Cityprovided water use data (2011/12 Sevier User Charges, Summar), by User code).
2. Single- and Multi-Family adjustments reflect landscape-irrigation factors.
a Total effluent from L.A. i-lyperion records (effluent flowmeters).
4. From flowmeter data for April 1. 2010 to March 31, 2011. Email from Public Works Dept, March 29, 2012.
1,801,090
a6vio
Development of the Customer Allocation Factor
Number of
Accounts
Adjusted (if
heeded)
Percent of
Total
Customer Class
HMV-
101 Single-Family
5,736
5,736
102 Multi-Family
6,199
6,199
200 Commercial/Business
1,086
1,086
300 Commercial/Restaurants
165
165
400 Institutional
57
57
500 Schools/Public
11
11
600 Commercial/Hotels
35
35
43.16%
46.65%
8.17%
1.24%
0.43%
0.08%
026%.
Appendix B
Sewer Rate Study — City of Culver City
Prepared by NBS June 26, 2012
B-11
3S 13lochemical Ox on Demand (BOO)
Total Susiltendect Sada (TSS)
Avg Strength
Factor 2 (mg/I)
Calculated Adjusted SOD
BUD (lb/yr) (lb/yr)
Percent of
Total
Avg Strength.
Factor2 (mg/1);
Calculated.
TSS (Iblyr)
Adjusted ISS
(Ib/yr)
Percent of
Total
629,956
838,543
489,259
405,046
79,911
2,734
182,629
529,986
838,543
489,259
.405,045
79,911
2,734
182,529
20.96%
33.17%
19.36%
16.02%
3,16%
0.11%
7:22%
478,347
756,839
441,588
405,045
31,964
2,103
142,372
478,347
756,839
441,558
405,045
31,964
2,103
142,372
21.18%
33.51%
19.55%
17.94%
1.42%
0.09%
6.30%
ig41711.1
110a
Development of the Strength Allocation Factor
Adjusted
Annual Flow
(cOf)l
CliSt01111q Class •
101 Single-Family
102 Multi-Family
200 Commercial/Business
300 Corn merclal/Restaurants
400 Institutional
500 Schools/PubliO
600 CommerclalMotels 3
436,675
689,323
402,195
102,250
61,239
3,371
117,037
1. Reflects irrigation credits for single-and multigamily classes.
/ Estimated BOD/TSS strength factors are from the efty's 2003104 engineer's Report (Table 2).
3. Estimated SOD/793 from City's 2003/04 Engineer's Report (Table 2):
Appendix B
B-12
Sewer Rate Study - City of Culver City
Prepared by NBS June 26, 2012