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7.A. - Page 87 <br /> 3.8 Projected Sewer Rate Increases <br /> The cash flow projections indicate that the City can meet its future revenue requirements with a <br /> series of small, gradual rate increases totaling approximately 9% over the next three fiscal years. <br /> Actual impacts to customers will vary based on customer class and water use due to changes to the <br /> rate structure. <br /> 3.9 Sewer Rate Structure Recommendations <br /> Bartle Wells Associates conducted an independent review a of the City's sewer rate structure. <br /> Based on evaluation of rate alternatives and input from the City's project team, a few modifications <br /> are recommended to better align rates with the cost of providing service in conformance with the <br /> substantive requirements of Proposition 218. Rate structure modifications are summarized below. <br /> 3.9.1 Charge for Multi-Family Accounts with 10+ Dwelling Units <br /> The City currently levies the same fixed uniform sewer charge for all residential dwelling units. <br /> Based on analysis of winter water use data, BWA recommends implementation of a reduced fixed <br /> sewer charge for multi-family dwelling units in larger accounts with 10 or more residential dwelling <br /> units. <br /> BWA analyzed water use from bi-monthly billing periods ending January through April, which <br /> provides a reasonable estimate of wastewater discharge as these are the lowest-use billing periods <br /> and reflect water use in the wetter, winter months during which there is minimal outdoor irrigation. <br /> Based on the analysis, BWA estimates that normal-year winter water use per dwelling unit in multi- <br /> family residential accounts with 10 or more dwelling units is roughly 60% to 65% of winter water <br /> use per dwelling unit in single family homes and multi-family accounts with fewer than 10 dwelling <br /> units. <br /> Winter water use per dwelling units in multi-family residential accounts with fewer than 10 dwelling <br /> units was similar to that of single family homes. Hence, BWA recommends a uniform sewer charge <br /> for all accounts with fewer than 10 dwelling units. <br /> While the average winter water use per dwelling unit for accounts with 10 or more dwelling units is <br /> lower than the typical use per dwelling unit for accounts with 1 to 9 dwelling units, the level of <br /> winter water use did not vary significantly regardless of the number of total dwelling units. Hence, <br /> BWA recommends a single rate class for all multi-family accounts with 10 or more dwelling units. <br /> B Sewer Utility Finances& Rates 60 <br /> W Water&Sewer Financial Plans&Rate Studies <br />