AgdaPkt 2016-06-27 Closed and Joint SA PFA

Browse Search

Sewer Utility Finances & Rates 63 Water & Sewer Financial Plans & Rate Studies 3.10.1 Unit Rate Derivation for Cost Recovery Cost Recovery Allocation Table S9 shows a 3‐year projection of annual sewer expenses broken out by functional cost category, and allocates the 3‐year average for each cost category for recovery from the rate parameters of wastewater flow and strength, as measured by BOD (biochemical oxygen demand), and SS (suspended solids).  Costs for the City’s sewer collection system are allocated 80% to flow and 20% to wastewater strength in recognition that most of the costs of operating and maintaining the collection system are attributed to flow, but a small portion of costs are attributable to the strength concentrations of wastewater discharge.  SVCW operating costs are allocated based on SVCW’s adopted budget allocations. These allocations recover SVCW operating costs based on each member agency’s share of total SVCW influent flow and loadings. However, it is also important to note that most of SVCW’s operating costs are fixed costs that do not vary with changes in wastewater flow.  SVCW debt service, reserve and capital cost contributions are allocated 60% to flow, and 20% each to the wastewater strength parameters of BOD and SS. These allocations are based on the estimated share of SVCW’s roughly $790 million capital improvement program attributable to wastewater flow and strength assuming costs for SVCW’s conveyance system are primarily related to flow, costs for nutrient removal are primarily related to wastewater strength, and costs for other wastewater treatment plant improvements are attributable 1/3 to flow, 1/3 to BOD, and 1/3 to SS.  As shown at the bottom of the table, total costs are allocated for rate recovery as follows: Flow: 59.60%, BOD 19.33%, and SS 21.07%. 6.4.A. - Page 90