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7.A. - Page 88 <br /> 3.9.2 Variable Commercial Rates Subject to a Minimum Charge <br /> Non-residential accounts currently pay both a) a fixed monthly sewer charge equal to the current <br /> residential charge, plus b) volumetric charges applied based on metered water use. The fixed <br /> charge currently includes the first 10 hcf of consumption per month, while the volumetric rates only <br /> apply for use in excess of 10 hcf per month. <br /> Wastewater from high-strength customers costs substantially more to treat than discharge from <br /> lower-strength customer classes. To more closely align sewer rates with cost of service, BWA <br /> recommends the City transition to a rate structure in which all non-residential customers pay for <br /> every unit of usage, subject to a minimum charge. A minimum charge can help ensure a reasonable <br /> minimum level of cost recovery for the substantial share of fixed costs of the wastewater system. <br /> The minimum monthly charge is recommended at the proposed, reduced, rate for multi-family <br /> dwelling units in larger accounts with 10 or more units. This proposed transition will impact each <br /> customer class differently. The transition will benefit low-strength/institutional customers and will <br /> result in higher charges to high-strength customers who financially benefit from the current fixed <br /> rate structure. <br /> 3.9.3 Consolidate Non-Residential Classes & Add a Mod-High Strength Class <br /> The City's current non-residential sewer rates include a number of wastewater rate categories <br /> based on business type. However, there are only four non-residential billing rates. BWA <br /> recommends the City consolidate its current non-residential customer classes to five basic classes <br /> based on wastewater strength— including a new Mod-High Strength class—as shown on Table S8. <br /> Table S8: Current and Proposed Non-Residential Classes <br /> Current Current Proposed Customer Classes <br /> Customer Classes Rate/hcf Class Wastewater Strength <br /> Industrial $4.91 Class A Standard Strength, Low Flow <br /> Institutional/Public 5.52 Class B Low Strength <br /> Retail/Commercial 6.15 Class C Standard Strength <br /> Hospitals 6.15 <br /> New Customer Class Class D Mod-High Strength <br /> Restaurants 14.93 Class E High Strength <br /> Supermarkets 14.93 <br /> Customers will be assigned to a rate class based on the existing use classifications. For example, <br /> restaurants and supermarkets will be assigned to Class E (High Strength); hospitals and standard <br /> commercial and retail uses will be assigned to Class C (Standard Strength). The purpose of the <br /> recommended Class D (Mod-High Strength) is to provide a rate classification for developments that <br /> consist of a single sewer account that either a) discharges wastewater that is best represented by <br /> Class D, or b) serves a mixture of Class E uses and less intense uses with average wastewater <br /> strength best represented by Class D. <br /> B Sewer Utility Finances& Rates 61 <br /> "r Water&Sewer Financial Plans&Rate Studies <br />