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Water Rate Cost-of-Service Study Section 5. Rate Design HF&H Consultants, LLC | July 8, 2025 | Page 37 of 53 Figure 5-2. Fire Service Charge Units of Service Capacity costs associated with the distribution system are apportioned among the connections in proportion to the capacity associated with each connection. In Figure 5-1, Connections are converted to Equivalent Meter Units (EMUs) to apportion the customer capacity cost component for potable and recycled water meters. An EMU represents the number of 5/8- inch meters to which a larger meter is equivalent. For example, a 1-inch meter provides 2.50 times as much capacity as a 5/8-inch meter. The capacity multipliers are based on the meter data provided by the City of the manufacturer’s nominal capacity. For larger sized meters, the City uses multiple types, such as displacement, turbine, or compound. All Single Family Residential customers were assumed to have a 5/8” meter based on the current rate structure which bills a fixed bi-monthly charge based on the smallest level of capacity (5/8”). The meter ratings used reflect the nominal capacity of the most commonly used meter type available for each size. There are 41,319 total EMUs. In effect, the 23,660 services of assorted sizes have the equivalent capacity as 41,319 5/8-inch meters. Figure 5-2 details the derivation of the units of service associated with fire services. For fire services, what dictates the demand on the system is the diameter of the fire service line, since during a fire event, each fire service needs to deliver very high flow rates instantly. The fire service size determines the maximum instantaneous demand it can place on the system (i.e., how much water the infrastructure must be ready to deliver at a moment’s notice for fire suppression). An Equivalent Fireline Unit (EFU) is calculated and proportionally allocates the standby capacity costs associated with providing adequate fire protection capacity. The EFU calculation relies upon a demand factor. The demand factor, or relative potential of the size of the service, is derived based on the service size raised to the power of 2.6316. The demand factors used reflect the equivalent capacity of the various sizes of private fire service lines. There are 63,613 total EFUs. In effect, the 667 service lines of assorted sizes have the equivalent demand of 63,613 1-inch service lines. Figure 5-3 derives the unit costs for the customer accounts and customer capacity cost components. Each service is allocated $18.98 per month for the customer service and public fire protection cost components. This amount represents the costs the City incurs to maintain each service regardless of the capacity of the service (e.g., customer billing, administration overhead). Each potable or recycled water (i.e. non-fire protection) service is also allocated $27.20 per month per EMU. This amount represents a portion of the cost of providing distribution system capacity for each account, and increases based on the capacity of the 16 Principles of Water Rates, Fees, and Charges. American Water Works Association Manual M1. 7th Edition, pg. 163 Fireline Services Private Fire Demand (In Inches)Services Factor EFUs aba * b 2" 170 6 1,052 3" 30 18 539 4" 146 38 5,595 6" 183 111 20,370 8" 126 237 29,888 10" 8 427 3,413 12" 4 689 2,756 667 Total EFUs 63,613 ATTY/RESO.0109/CC RESO WATER RATES - EXHIBIT A REV: 11-05-25 MI