Committee of the Whole

1 COMMITTEE OF THE WHOLE Monday, November 9, 2015 at 7:00pm City Hall Council Chamber 109 James Street Geneva, IL 60134 Ald. Craig Maladra, Chair AGENDA 1. CALL TO ORDER 2. APPROVE COMMITTEE OF THE WHOLE MINUTES FROM OCTOBER 26, 2015. 3. ITEMS OF BUSINESS a. Police Department Presentation b. Recommend Draft Resolution Authorizing Execution of an Operating Services Agreement with ISC, Inc. (subsidiary of the Indiana Municipal Power Agency). c. Recommend Approval of Proposed Water and Wastewater Sewer Rates (Alternate I) and Direct Staff to Prepare Draft Ordinance Amendment. 4. NEW BUSINESS 5. CLOSED SESSION ON COLLECTIVE NEGOTIATING MATTERS BETWEEN THE PUBLIC BODY AND ITS EMPLOYEES OR THEIR REPRESENTATIVES. 6. ADJOURNMENT 2 COMMITTEE OF THE WHOLE MINUTES October 26, 2015 PRESENT: Mayor Burns, Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Simonian, Seno, Singer STAFF: McKittrick, Dawkins, Babica, Nash 1. CALL TO ORDER Chairman Singer called the meeting to order at 7pm noting all were present. 2. APPROVE COMMITTEE OF THE WHOLE MINUTES FROM OCTOBER 12, 2015. Moved by Ald. Bruno, second by Ald. Marks V/V: 10-0 Motion carried. 3. ITEMS OF BUSINESS a. Recommend Draft Ordinance Amending Title 6 (Police Regulations), Chapter 2 (Miscellaneous), Section 5 (Weapons) Adding Subsection 6-2-5C (Regulation of Air Rifles) Moved by Ald. Marks, second by Ald. Bruno Police Commander Nash provided an overview of the changes that were implemented based on the council’s discussions on August 10 and 17, noting the allowance for club, team aspect as well as addressing the ‘lookalike’ air gun issue. Nash also noted that the transporting language mirrored the state statute. Ald. Seno requested that separate language on the size of paintball be added since they are larger than the .18 bb. Aldermen also discussed the language regarding property owners and renters. Cummings asked that ‘residence’ be changed to ‘property’. Ald. Radecki reiterated his support for the original draft and would not support this amendment as presented. DuPage county resident, Mike Wiseman, a representative with the Illinois Rifle Association, voice his opposition to the draft ordinance. Geneva resident Kurt Koenig also voiced his opposition. On Koenig’s suggestion of owners putting orange tape on the air rifles instead of the transportation requirements, Comm. Nash stated that someone could also put orange tape on a real weapon and that officer safety would be jeopardized. 3 The aldermen reached consensus to add the paintball size regulations as well as the property language change to bring forward for formal approval on November 2, 2015. V/V: 9-1 (Radecki) Motion carried. b. Recommend Draft Resolution Declaring Water Division 2000 GMC K-2500 as Surplus Property. Moved by Ald. Bruno, second by Ald. Kilburg V/V: 10-0 Motion carried. c. Recommend Draft Ordinance Amending Title 4, Chapter 2 (Liquor Control) Amending the Class D-7 (Geneva Park District) Liquor License. Moved by Ald. Maladra, second by Ald. Seno V/V: 10-0 Motion carried. 4. NEW BUSINESS Public Works Dir. Rich Babica, along with CDM Smith representative Amrou Atassi, provided some additional details on the proposed water treatment plant upgrades at the request of an alderman. Mayor Burns presented City Administrator Mary McKittrick with a plaque from the International City/County Management Association honoring her 30 years in public service. The audience gave McKittrick a round of applause. 5. ADJOURNMENT On a motion by Ald. Simonian, second by Ald. Marks, the meeting was adjourned by unanimous voice vote at 8:01pm. 4 AGENDA ITEM EXECUTIVE SUMMARY Consider Resolution Authorizing Execution of an Operating Services Agenda Item: Agreement with ISC, Inc. Presenter & Hal E. Wright, Superintendent of Electrical Services Title: Date: November 3, 2015 Please Check Appropriate Box: X Committee of the Whole Meeting Special Committee of the Whole Meeting X City Council Meeting Special City Council Meeting Public Hearing Other - Associated Strategic Plan Goal/Objective: Vision 5, Goal N Budgeted? _X_ Yes Other ____ Yes Estimated Cost: $60,000 ____ No Funding? ____ No If “Other Funding,” please explain how the item will be funded: Executive Summary: Geneva has had an Operating Services Agreement with the Indiana Municipal Power Agency (IMPA) since January 2006 to estimate and bid our power supply resources and loads into the PJM Regional Transmission Market. IMPA will no longer offer these services directly but in the future will provide these services through a subsidiary company known as ISC. ISC is offering to continue to provide services to Geneva at our current rate of $10,000 per month through April 30, 2016. Thereafter the price for those same services would increase to $22,000 per month. Between now and April 30, 2016, city staff will conduct a Request for Qualifications to evaluate proposals from qualified companies and ensure the interests of the City are being effectively and competitively managed. Staff will bring a recommendation to the City Council before April 30, 2016 to either continue with ISC or enter into a similar agreement with another provider. Until that process can be completed, it is staff’s recommendation to enter into the attached agreement with ISC. Attachments: (please list) • Proposed Operating Services Agreement with ISC Recommendation / Suggested Action: (how item should be listed on agenda) Authorize execution of the Operating Services Agreement with ISC, Inc., a subsidiary of the Indiana Municipal Power Agency, (IMPA). 5 RESOLUTION NO. 2015-__ RESOLUTION AUTHORIZING Execution of an Operating Services Agreement with ISC, Inc. a subsidiary of the Indiana Municipal Power Agency, (IMPA) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GENEVA, KANE COUNTY, ILLINOIS, as follows: SECTION 1: That the City Administrator is hereby authorized to execute an Operating Services Agreement with ISC, Inc., on behalf of the City of Geneva, as recommended by Staff. SECTION 2: This Resolution shall become effective from and after its passage as in accordance with law. PASSED by the City Council of the City of Geneva, Kane County, Illinois, on this 16th day of November, 2015. AYES: __ NAYS: __ ABSENT: __ ABSTAINING: __ HOLDING OFFICE: __ Approved by me this 16th day of November, 2015. Mayor ATTEST: City Clerk 6 Operating Services Agreement This Agreement for operating services is executed and made effective as of October 1, 2015 (the “Effective Date”), between ISC, Inc. (“ISC”), a non-profit corporation organized under the laws of the State of Indiana, and the City of Geneva, Illinois, a municipality and political subdivision of the State of Illinois ("Client") (each individually a “Party” and together “the Parties”). WHEREAS, the Indiana Municipal Power Agency (“IMPA”) and Client previously entered into an Operating Services Agreement dated January 1, 2006 (the “IMPA Agreement”); WHEREAS, IMPA has decided to no longer offer the type of services provided under the IMPA Agreement, but ISC, a subsidiary of IMPA, will offer those services; WHEREAS, Client desires ISC to continue providing the services previously provided by IMPA under the IMPA Agreement; WHEREAS, the IMPA Agreement will terminate on the Effective Date of this Agreement, as provided in separate notice from IMPA to Client; NOW THEREFORE, in consideration of the covenants set forth herein, ISC and Client mutually agree as follows: Article 1 — Scope of Work 1.1 Services ISC shall perform operating services related to Client’s electric utility operations as described in Exhibit A and attached to this Agreement (the “Services”). In connection with certain of the Services, Client will appoint ISC as its agent to conduct all transactions on behalf of Client with PJM Interconnection, LLC (“PJM”). Client will execute such instruments as PJM may require with respect to ISC’s appointment and role as Client’s agent. Client acknowledges that it will retain certain responsibilities and functions with respect to its operations in order to facilitate ISC’s performance of the Services. The parties agree to modify in writing the responsibilities and functions of ISC and Client identified in Exhibit A from time to time, as warranted or necessitated by modifications of the Services made pursuant to Section 1.2, or to conform to prevailing industry standards. Client hereby designates the Superintendent of Electric Services or the Manager of Electric Operations to act as Client’s representative with respect to the Services to be performed under this Agreement. Such persons, acting individually or collectively, have complete authority to transmit instructions, receive information, interpret and define Client’s policies, decisions and approvals with respect to the Services, and otherwise to act on behalf of Client in all matters pertinent to the Services. Client’s Director of Public Works may designate replacement representatives by providing written notice of such designation to ISC. 7 1.2 Changes in Scope of Services In the event Client requests a change in the Services set forth in Exhibit A, or ISC recommends a change in such Services, ISC shall submit to Client’s representative a written proposal setting forth the changes to the scope of the Services and the change, if any, in the price for the Services. If Client accepts ISC’s proposal, Client and ISC shall execute a written change to Exhibit A, authorizing ISC’s performance of the revised scope of Services. ISC shall not perform any changes in the scope of Services except pursuant to a written change to Exhibit A. Article 2 — Compensation and Terms of Payment 2.1 Compensation As compensation for the services to be performed hereunder, client shall pay a flat fee of $10,000.00 per month through April 30, 2016. From May 1, 2016 through December 31, 2016, client shall pay a flat fee of $22,000.00 per month. ISC shall submit monthly invoices to Client, which shall be payable on receipt. On or about September 1, 2016, and on or about each September 1 thereafter, the Parties shall review the fee and may make changes therein as mutually agreed upon for the following calendar year. Pursuant to Exhibit A, the Services hereunder may include sales of Client’s excess power, from time to time and in ISC’s discretion, in the PJM market. Client agrees that PJM shall pay the net proceeds of such sales to Client. ISC will provide information with respect to such sales. 2.2 Expenses Client shall reimburse ISC for its reasonable expenses incurred in connection with providing the Services, including expenses related to travel and transportation (e.g., airfare, car rental, cab fare, parking, etc.) meals, lodging, photocopying (at $0.25 per page), long-distance telephone charges, and other out-of-pocket expenses, which shall be identified on the monthly invoice submitted to Client. Article 3 — Standard of Care; Reliance on Data 3.1 ISC’s Services ISC shall perform the Services with the same degree of skill and care that it employs in performing similar services for itself and its member utilities. 3.2 Reliance on Data ISC shall rely on the information made available, either directly by Client or by third parties retained by Client, as accurate without independent verification. ISC shall have no liability for errors or omissions in its Services attributable in whole or in part to ISC’s reliance upon or use of data or other information so furnished by Client or by third parties, including, without limitation, PJM. 8 Article 4 — Term and Termination 4.1 Term The Initial Term of this Agreement shall be from November 1, 2015 through December 31, 2016. This Agreement shall remain in effect thereafter for Successive one-year Terms, until it is terminated pursuant to Article 4.2. ISC reserves the right to adjust its rates and charges for the Services, as provided in Article 2. 4.2 Termination During the period of November 1, 2015 through April 30, 2016, this Agreement and Services provided hereunder may be terminated by Client or ISC upon written notice to be effective not less than thirty (30) days after receipt thereof. During the remainder of the Agreement’s Initial Term (from May 1, 2016 through December 31, 2016), this Agreement and Services provided hereunder may be terminated by Client or ISC upon written notice to be effective not less than ninety (90) days after receipt thereof, in the event of the other party’s substantial failure to perform in accordance with the Agreement’s terms through no fault of the terminating party, provided that such failure to perform is not excused by force majeure. For purposes of this section, substantial failure to perform shall include Client’s nonpayment, beyond 60 days of Client’s receipt, of any invoice rendered to it. After completion of the Agreement’s Initial Term (i.e., during Successive Terms), this Agreement and Services provided hereunder may be terminated by Client or ISC upon written notice to be effective not less than ninety (90) days after receipt thereof. In connection with any termination under this Section, Client shall pay ISC all amounts due for all Services rendered and expenses incurred to the date of termination or, if later, the date ISC suspended its performance, plus reasonable costs incurred by ISC in terminating the Services. Article 5 — Force Majeure To the extent either party is prevented by Force Majeure from carrying out, in whole or in part, its obligations under this Agreement and such party (the "Claiming Party") gives notice and details of the Force Majeure to the other party as soon as practicable, then the Claiming Party shall be excused from the performance of its obligations (other than the obligation to make payments then due or becoming due with respect to performance prior to the occurrence of Force Majeure). The Claiming Party shall remedy the Force Majeure with all reasonable dispatch. For purposes of this Agreement, "Force Majeure" means an event or circumstance which prevents the Claiming Party from performing its obligations hereunder, which event or circumstance was not anticipated as of the effective date hereof and was not within the reasonable control of, or the result of the negligence of, the Claiming Party, and which, by the exercise of due diligence, the Claiming Party is unable to overcome or avoid or cause to be avoided. 9 Article 6 — General Provisions 6.1 Relationship of the Parties The parties acknowledge and agree that ISC shall act as Client’s agent with respect to all matters involving PJM, as provided in Article 1.1 and Exhibit A. In all other respects, ISC is an independent contractor with respect to the Services performed hereunder. In its sole discretion, ISC may have the Services performed by a related or affiliated entity, in which case ISC shall remain responsible for such Services and Client shall look solely to ISC as if the services were performed by ISC. Neither ISC nor its agents, employees or subcontractors shall be deemed to be servants or employees of Client. 6.2 Limitation on Liability; Indemnification 6.2.1 Limitation on Liability. ISC shall not be liable to Client for any loss, cost, damage, or expense incurred by Client as a result of any action or failure to act, under any circumstances, by ISC (or its employees, agents, or contractors) in performing any of the Services, unless such loss, cost, damage, or expense is the result of gross negligence or intentional wrongdoing on the part of ISC. Under no circumstances shall ISC be liable to Client for any act or omission on the part of PJM or those entities involved in the supply of fuel to Client's generators. Notwithstanding any other provision of this Agreement, the maximum aggregate liability of ISC to Client in connection with all losses, costs, damages or expenses arising under this Agreement shall be limited to the aggregate amount of fees paid to ISC by Client pursuant to this Agreement during the Term in which the losses, costs, damages or expenses occurred. 6.2.2 Indemnification. Subject to Section 6.2.1, each party shall, to the extent permitted by law, indemnify, defend and save the other party harmless from any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demands, suits, recoveries, costs and expenses, court costs, attorney fees and all other obligations by or to third parties, arising out of or resulting from the indemnifying party's performance of its obligations under this Agreement. 6.2.3 No Consequential Damages. Notwithstanding Section 6.2.1, neither party shall be liable to the other for any indirect, incidental, special, consequential, punitive, multiple, or exemplary damages (including, without limitation, lost profits or revenue, or loss of goodwill) arising out of, due to, or in connection with either party's performance or nonperformance under this Agreement, or any of its obligations herein, whether based on contract, tort (including negligence), strict liability, warranty or otherwise. 10 6 . 3 Assignment This Agreement shall not be assignable by either party without the prior written consent of the other party. Any such assignment shall be null and void and without effect. 6.4 Notices All notices pertaining to this Agreement shall be in writing and shall be sufficient when sent by hand delivery, United States mail, overnight courier service or facsimile transmission to: Client: City of Geneva 1800 South Street Geneva, Illinois 60134 Attn: Director of Public Works Fax No. 630-208-1503 ISC: ISC, Inc. 11610 North College Avenue Carmel, Indiana 46032 Attn: President Fax No. 317-575-3372 6.5 Entire Agreement This Agreement shall constitute the entire agreement between the parties hereto and supersedes any and all prior agreements, representations, understandings, proposals or communications, whether oral or written. This Agreement shall not be varied, supplemented, qualified or interpreted by any prior course of dealing between the parties hereto or by any usage of trade. This Agreement may be amended or modified only by a written document executed by ISC and Client. In the event of a conflict between this document and any exhibit hereto, the terms and provisions of this document shall control. In the event Client issues a purchase order to ISC in connection with the execution of this Agreement or a modification of the scope of Services pursuant to Section 1.2, no preprinted terms thereon shall become a part of this Agreement. Any such purchase order, whether or not signed by ISC, shall be considered to be a document solely for Client’s internal operations management. 6.6 Interpretation 6.6.1 The validity, interpretation, and performance of this Agreement, and each of its provisions, shall be governed by the laws of the State of Indiana and any litigation hereunder shall be commenced in the federal or state courts sitting in the State of Indiana. 6.6.2 Headings and titles of articles, sections, paragraphs, and other subparts of this Agreement are for convenience of reference only and shall not be considered in interpreting the text of this Agreement. 5 11 6.6.3 Indemnities against, releases from, and limitations on liability, and limitations on remedies expressed herein, as well as waivers of rights hereunder, including, but not limited to, subrogation rights, shall apply in the event of breach of contract or warranty, tort (including negligence), strict liability, or other basis of liability of the Party indemnified or released, or against whom liability has been limited or remedies have been waived. Such indemnities, releases, waivers and limitations shall also extend to the officers, directors, employees, licensors, agents, subcontractors, vendors and related entities of such Party. 6.6.4 In the event any portion or all of this Agreement is held to be void or unenforceable, the Parties agree to negotiate in good faith to reach an equitable agreement which shall effect the intent of the parties as originally set forth herein. 6.6.5 This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one in the same instrument. 6.7 Attorneys’ Fees If any Party institutes any legal suit, action or proceeding against the other Party to enforce this Agreement or concerning any issues arising out of or relating to this Agreement, the prevailing party in the suit, action or proceeding is entitled to receive, and the non-prevailing party shall pay, in addition to all other remedies to which the prevailing party may be entitled, the costs and expenses incurred by the prevailing party in conducting the suit, action or proceeding, including reasonable attorneys’ fees, court costs and other related litigation expenses, even if not otherwise recoverable by law (including, without limitation, all fees, taxes, costs and expenses incident to appellate, bankruptcy and post-judgment proceedings). IN WITNESS WHEREOF, the parties hereto have executed this contract document as of the date and year first above written. ISC, Inc. City of Geneva, Illinois By: ________________________ By: ______________________ Raj. G. Rao President Attest: ____________________ 12 13 AGENDA ITEM EXECUTIVE SUMMARY Agenda Item: Water & Sewer Rate Study Update Dave Hyder, Burton and Associates. Presenter & Title: Rich Babica, Public Works Director Bob VanGyseghem, Superintendent of Water and Wastewater Date: November 4, 2015 Please Check Appropriate Box: X Committee of the Whole Meeting Special Committee of the Whole Meeting X City Council Meeting Special City Council Meeting Public Hearing Other - Associated Strategic Plan Goal/Objective: Vision 5: Manage City resources and assets to effectively deliver core services, provide for capital investment, and meet community needs and desires. Goal F: Finalize the utility’s facility plan and necessary upgrades /improvements to comply with mandates. Budgeted? ____ Yes Other ____ Yes Estimated Cost: $ ____ No Funding? ____ No If “Other Funding,” please explain how the item will be funded: Executive Summary: In 2012 Dave Hyder, then with Municipal & Financial Services Group, performed a Water & Sewer Rate Study. This study was approved by the City Council and a three year water and sewer rate increase was codified ending on May 1, 2014. With the completion of the Facility Plan Update for the WWTP to ensure compliance with new IEPA Directives, staff requested an update to the rate model. Dave Hyder has updated the model to include the use of an Illinois EPA low interest loan for the Phase I construction of WWTP improvements in the amount of $8,000,000. The Phase II improvements are projected to use available water utility funds scheduled over a four (4) year period along with a second $2,000,000 IEPA loan if required. Dave Hyder, now with Burton and Associates, will present the model update and the status of the Water & Sewer Fund. Three rate alternatives will be presented with staff recommending Alternative I. Attachments: (please list)  Water and Sewer Rate Study Executive Summary  Water and Sewer Rate Study Presentation Recommendation / Suggested Action: (how item should be listed on agenda) Recommend that the City Council approve the proposed water and wastewater sewer rates included within Alternate I and direct Staff to prepare the necessary amendments to the ordinances and bring forth at a future council meeting. 14 Water and Sewer Rate Study Update Executive Summary The City of Geneva engaged Burton & Associates to complete a water and sewer rate study for the City’s utilities. The primary objectives of the study were to evaluate the financial health of the City’s utilities, consider alternative water and sewer rate structures and benchmark the City’s water and sewer bills and rate structure with comparable communities. This document provides an executive summary of the analysis and our recommendations. Revenue Sufficiency Analysis The revenue sufficiency analysis for the water and sewer systems was completed by developing a five year financial forecast of annual expenditures including operating and maintenance and capital expenses and comparing the expenses by system with the anticipate revenues for each system. Table 1 presents a forecast of the water and sewer system expenses and the anticipated revenues for each system. Table 1 ‐ Expenditure and Revenue Forecast Water System FY 16 FY 17 FY 18 FY 19 FY 20 Water System Expenses $5,204,981 $5,363,117 $5,371,887 $5,071,463 $5,153,615 Revenues with Existing Water Rates $4,590,216 $4,567,265 $4,544,428 $4,521,706 $4,499,098 Surplus / (Shortfall) ($614,766) ($795,852) ($827,459) ($549,757) ($654,517) Sewer System FY 16 FY 17 FY 18 FY 19 FY 20 Water System Expenses $3,286,173 $3,492,910 $3,487,911 $3,804,017 $3,494,365 Revenues with Existing Sewer Rates $2,902,212 $2,887,701 $2,873,262 $2,858,896 $2,844,602 Surplus / (Shortfall) ($383,961) ($605,209) ($614,649) ($945,121) ($649,764) As demonstrated in Table 1, the revenues from the current water and sewer rates are projected to fall short of the annual expenses within the water and sewer systems each of the years of the forecast period. One of the primary reasons for the shortfall within the sewer system is due to the costs associated with the wastewater treatment upgrade. It should also be noted that the annual revenues from current water and sewer rates is anticipated to decline annually due to ongoing reductions in metered water volumes experienced within the City (which is consistent with national trends). The forecasted annual shortfalls are not sustainable as the Water and Sewer Fund does not have sufficient reserves to fund the annual loses, by FY17 the Water and Sewer Fund will have exhausted all reserves. To address the annual shortfalls within the Water and Sewer Fund, it is necessary to bring revenues in line with expenditures. Table 2 presents our recommended adjustments to water and sewer revenues to ensure the financial health and stability of the City’s Water and Sewer Fund. Table 2 ‐ Recommended Revenue Adjustments Revenue Increases FY 16* FY 17 FY 18 FY 19 FY 20 Effective Date 12/1/2015 5/1/2016 5/1/2017 5/1/2018 5/1/2019 Water 9% 9% 6% 3% 2% Sewer 6% 6% 6% 6% 0% *Represents a 9% and 6% increase in revenues that would have been collected 12/1/15 to 4/30/16 The adjustments to water and sewer revenues will bring annual water and sewer revenues in line with expenditures over the next five years and allow the cash balance within the Water and Sewer Fund be restored to meeting the City’s minimum cash balance target of 25% of operating expenses by FY 19. BURTON & ASSOCIATES 1 City of Geneva Utility Rates ▪ Assessments ▪ Financial Planning Executive Summary 15 Rate Structure Alternatives Several rate structure alternatives were considered as part of the study with the goal of developing rates that will: improved fiscal stability and recovery of fixed costs, minimize one‐time impacts to any one class of customer and appropriately recover costs associated with capital infrastructure replacement. Three specific sets of rates were developed for consideration (all of which would produce the same amount of revenue). The rate structures considered include:  Current Rate Structure ‐ Maintain the current structure for water and sewer rates and apply an “across the board” increase in rates consistent with the necessary increases in revenues shown in Table 2.  Alternative I Rate Structure ‐ Add an Infrastructure Replacement Charge to the current fixed charges assessed for water and sewer to increase revenue stability and provide a dedicated funding source for system replacements.  Alternative II Rate Structure ‐ Add the Infrastructure Replacement Charge and adopt a uniform water usage rate, replacing the current declining block rate structure. Table 3 demonstrates the determination of the Infrastructure Replacement Charge which is a key component of the rate alternatives. Water Current FY 16 FY 17 FY 18 FY 19 FY 20 Determination of Fixed Charge Infrastructure Replacement Charge (3/4" Meter) $2.00 $4.00 $6.00 $6.00 $6.00 Fixed Fee (3/4" Meter) $8.54 $8.54 $8.54 $8.54 $8.54 $8.54 Total Monthly Fixed Charge $8.54 $10.54 $12.54 $14.54 $14.54 $14.54 Sewer Current FY 16 FY 17 FY 18 FY 19 FY 20 Determination of Fixed Charge Infrastructure Replacement Charge (3/4" Meter) $1.00 $2.50 $3.50 $4.00 $4.00 Fixed Fee (3/4" Meter) $5.46 $5.46 $5.46 $5.46 $5.46 $5.46 Total Monthly Fixed Charge $5.46 $6.46 $7.96 $8.96 $9.46 $9.46 As the table demonstrates the Infrastructure Replacement Charge would be a component of the monthly fixed charge and would increase over time to generate revenues for water and sewer system asset replacement. The Infrastructure Replacement Charge would be scaled by meter size just as the City current scales the monthly fixed charge. Recommendations Given the forecasted shortfalls in the City’s Water and Sewer Fund, we recommend that the City take action to increase water and sewer revenues as soon as possible consistent with the increases shown in Table 2. After reviewing the City’s current rate structure and the alternative structures, it is our recommendation that the City adopt a rate structure that includes an Infrastructure Replacement Charge within fixed charge and maintain the current declining block rates for the water system. The Infrastructure Replacement Charge portion of the fixed charge will provide a dedicated funding source for the ongoing replacement of water distribution mains and lining of the sewer collection system, funding approximately 85% of these annual expenditures. The selected rate structure alternative minimizes the BURTON & ASSOCIATES 2 City of Geneva Utility Rates ▪ Assessments ▪ Financial Planning Executive Summary 16 impact on any one class of customers within the City. A complete schedule of recommended water and sewer rates are presented in Tables 4 and 5. Table 4: Recommended Water Rates Water Current FY 16 FY 17 FY 18 FY 19 FY 20 Total Monthly Fixed Charge Meter Size 5/8 $6.55 $8.08 $9.62 $11.15 $11.15 $11.15 3/4 $8.54 $10.54 $12.54 $14.54 $14.54 $14.54 1 $12.57 $15.51 $18.46 $21.40 $21.40 $21.40 1 1/2 $22.56 $27.84 $33.13 $38.41 $38.41 $38.41 2 $34.59 $42.69 $50.79 $58.89 $58.89 $58.89 3 $62.68 $77.36 $92.04 $106.72 $106.72 $106.72 4 $102.80 $126.87 $150.95 $175.02 $175.02 $175.02 6 $203.02 $250.57 $298.11 $345.66 $345.66 $345.66 Usage Charges (per 100 cubic feet) Tier 1 (0 ‐ 1,500 cubic feet) $4.38 $4.59 $4.85 $4.95 $5.16 $5.31 Tier 2 (1,500 ‐ 20,000 cubic feet) $4.05 $4.25 $4.48 $4.58 $4.77 $4.91 Tier 3 (Above 20,000 cubic feet) $3.92 $4.11 $4.34 $4.43 $4.62 $4.75 Table 5: Recommended Sewer Rates Sewer Current FY 16 FY 17 FY 18 FY 19 FY 20 Total Monthly Fixed Charge Meter Size 5/8 $4.35 $4.95 $6.11 $6.87 $7.26 $7.26 3/4 $5.46 $6.46 $7.96 $8.96 $9.46 $9.46 1 $7.71 $9.51 $11.72 $13.19 $13.92 $13.92 1 1/2 $13.29 $17.07 $21.03 $23.67 $24.99 $24.99 2 $20.01 $26.17 $32.24 $36.29 $38.32 $38.32 3 $35.72 $47.41 $58.42 $65.76 $69.43 $69.43 4 $58.14 $77.76 $95.82 $107.86 $113.87 $113.87 6 $114.15 $153.57 $189.23 $213.00 $224.89 $224.89 Usage Charges (per 100 cubic feet) Non‐Industrial $2.53 $2.63 $2.65 $2.75 $2.91 $2.91 Industrial $3.80 $3.95 $3.98 $4.12 $4.38 $4.37 Table 6 presents the combined water and sewer bills based on the recommended rates and the change in the monthly combined bill each year. BURTON & ASSOCIATES 3 City of Geneva Utility Rates ▪ Assessments ▪ Financial Planning Executive Summary 17 Table 6: Combined Water and Sewer Bills Combined Monthly Bill Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $53 $58 $63 $67 $70 $71 Residential User (2,000 cf/month) $142 $151 $159 $166 $174 $176 Commercial (3,000 cf/month) $210 $223 $236 $246 $257 $261 Industrial (25,000 cf/month) $1,985 $2,095 $2,186 $2,265 $2,376 $2,407 Monthly Dollar Change Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) ‐ $5 $5 $4 $3 $1 Residential User (2,000 cf/month) ‐ $9 $9 $7 $8 $3 Commercial (3,000 cf/month) ‐ $13 $13 $10 $11 $4 Industrial (25,000 cf/month) ‐ $109 $91 $79 $111 $31 Benchmarking A sample bill benchmarking comparison is provided in Figure 1. It is very important to note that the rates and fees collected from the comparison communities represent their currently published rates and fees. Therefore the comparison does not account for the likely increases in rates that may be adopted within the communities in the next fiscal year. Figure 1: Sample Monthly Water and Sewer Comparison (3/4” Meter using 700 cubic feet) West Chicago Current Geneva Bartlett Batavia Recommended Geneva FY 16 St. Charles South Elgin $‐ $10 $20 $30 $40 $50 $60 $70 Water Sewer The figure demonstrates that the City currently has the second lowest combined bill and with the increase proposed this fiscal year the City bills would move up the scale slightly. BURTON & ASSOCIATES 4 City of Geneva Utility Rates ▪ Assessments ▪ Financial Planning Executive Summary 18 Water and Sewer Rate Study City Council Work Session November 9, 2015 Presented by: David Hyder, Vice President 19 Scope of the Rate Study Update 1. Develop Multi-Year Financial Management Plans
Satisfy annual operating and capital cost requirements (including funding of WWTP upgrade)
Maintain operating reserves consistent with City policy 2. Develop Rate Structure Modifications
Appropriate funding for replacement of system assets
Increased revenue stability 3. Benchmarking
Compare typical water and sewer bills and rate structures 2 20 The Objective: Sustainability Rates need to balance all aspects of sustainability:
Social
Fair & equitable distribution of costs
Promote public policy & quality of life objectives
Environmental
Promote resource conservation
Fund cost of regulatory compliance
Economical
Long-term revenue sufficiency
Ongoing cost requirements
Financial policies
Fiscal stability
Fixed cost recovery
Withstand changes in demand 3 21 Key Sustainability Challenges
Funding of 5-Year Capital Improvement Program
Wastewater Treatment Plant Upgrade = $12.0M
Water Distribution Rehabilitation = $3.0M
Sewer Collection Rehabilitation = $2.0M
Existing debt payments for water system ($1.6M annually, approximately 30% of total annual water expenses).
Ongoing reductions in water and sewer sales and resulting reduction in revenues 4 22 Declining Demands 1,400,000 Total Annual Water Sales (100 cubic feet) 1,200,000 Forecast 1,000,000 800,000 600,000 400,000 200,000 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 23 Multi-Year Financial Management Plans 24 Operating Budgets Water Sewer $3,500,000 $3,500,000 $3,000,000 $3,000,000 $2,500,000 $2,500,000 $2,000,000 $2,000,000 $1,500,000 $1,500,000 $1,000,000 $1,000,000 $500,000 $500,000 $- $- FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Water Production Water Distribution Water Treatment Wastewater Treatment Wastewater Collection Industrial Wastewater 7 25 Existing Debt Water Sewer $2,000,000 $2,000,000 $1,500,000 $1,500,000 $1,000,000 $1,000,000 $500,000 $500,000 $- $- FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 General Obligation Refunding Bonds, Series 2012B Drinking Water Loan L17 - 210400 Wastewater Loan L17-185400 Drinking Water Loan L17 - 233000 Wastewater Loan L17-098600 Drinking Water Loan L17 - 285100 8 26 Capital Improvement Plan Water System FY 16 FY 17 FY 18 FY 19 FY 20 Total Water Mains 820,000 867,000 687,000 687,000 850,271 3,911,271 Water Treatment Plant 186,650 155,150 148,000 41,000 - 530,800 Water Supply 70,000 60,000 - 55,000 - 185,000 Water Storage - - - - - - Metering 110,000 105,000 105,000 105,000 105,000 530,000 Miscellaneous Projects 43,835 150,300 84,500 52,500 12,500 343,635 Total Water Projects $1,230,485 $1,337,450 $1,024,500 $940,500 $967,771 $5,500,706 Sewer System FY 16 FY 17 FY 18 FY 19 FY 20 Total Sanitary Lining 276,000 680,000 565,000 565,000 300,198 2,386,198 Sewer Pumps 52,000 63,000 55,000 65,000 55,000 290,000 Wastewater Treatment Plant 8,882,850 582,822 705,681 2,507,592 509,432 13,188,377 Miscellaneous Projects 133,150 149,300 52,500 51,500 36,691 423,141 Total Sewer Projects $9,344,000 $1,475,122 $1,378,181 $3,189,092 $901,321 $16,287,716 9 27 Water System Water Fund FY 16 FY 17 FY 18 FY 19 FY 20 Operating Costs Total Operating Expenses $ 2,854,494 $ 2,900,064 $ 2,952,213 $ 3,006,161 $ 3,061,441 Total Operating Expenses $ 2,854,494 $ 2,900,064 $ 2,952,213 $ 3,006,161 $ 3,061,441 Capital Costs Existing Debt Service Payments $ 1,592,020 $ 1,591,620 $ 1,591,220 $ 1,590,820 $ 1,590,420 Cash Funded Capital Projects $ 1,230,485 $ 1,342,450 $ 1,239,500 $ 945,500 $ 972,771 Projected Debt Service Expense $ - $ - $ - $ - $ - Total Capital Expenses $ 2,822,505 $ 2,934,070 $ 2,830,720 $ 2,536,320 $ 2,563,192 Total Expenses $ 5,676,999 $ 5,834,135 $ 5,782,933 $ 5,542,481 $ 5,624,633 Less Miscellaneous Other Revenues $ 472,018 $ 471,018 $ 411,046 $ 471,018 $ 471,018 Net Expenses $ 5,204,981 $ 5,363,117 $ 5,371,887 $ 5,071,463 $ 5,153,615 Revenues: Current Water Rates $ 4,590,216 $ 4,567,265 $ 4,544,428 $ 4,521,706 $ 4,499,098 Surplus / (Shortfall) $ (614,766) $ (795,852) $ (827,459) $ (549,757) $ (654,517) 10 28 Sewer System Sewer Fund FY 16 FY 17 FY 18 FY 19 FY 20 Operating Costs Total Operating Expenses $ 1,861,346 $ 1,889,827 $ 1,921,798 $ 1,954,642 $ 1,932,761 Total Operating Expenses $ 1,861,346 $ 1,889,827 $ 1,921,798 $ 1,954,642 $ 1,932,761 Capital Costs Existing Debt Service Payments $ 709,765 $ 771,898 $ 771,898 $ 771,898 $ 771,898 Cash Funded Capital Projects $ 1,454,000 $ 1,580,122 $ 1,483,181 $ 1,294,092 $ 1,006,321 Projected Debt Service Expense $ - $ - $ - $ 532,323 $ 532,323 Total Capital Expenses $ 2,163,765 $ 2,352,020 $ 2,255,079 $ 2,598,313 $ 2,310,542 Total Expenses $ 4,025,111 $ 4,241,848 $ 4,176,877 $ 4,552,955 $ 4,243,303 Less Miscellaneous Other Revenues $ 738,938 $ 748,938 $ 688,966 $ 748,938 $ 748,938 Net Expenses $ 3,286,173 $ 3,492,910 $ 3,487,911 $ 3,804,017 $ 3,494,365 Revenues: Current Sewer Rates $ 2,902,212 $ 2,887,701 $ 2,873,262 $ 2,858,896 $ 2,844,602 Surplus / (Shortfall) $ (383,961) $ (605,209) $ (614,649) $ (945,121) $ (649,764) 11 29 Utility Fund Balance Water Sewer $1,500,000 $1,500,000 $1,000,000 $1,000,000 $500,000 $500,000 $- $- FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 $(500,000) $(500,000) $(1,000,000) $(1,000,000) $(1,500,000) $(1,500,000) $(2,000,000) $(2,000,000) $(2,500,000) $(2,500,000) $(3,000,000) $(3,000,000) $(3,500,000) $(3,500,000) End of Year Cash Balance Minimum Cash Balance End of Year Cash Balance Minimum Cash Balance 12 30 Financial Plan FY16 FY17 FY18 FY19 FY20 Water Revenue Increase 9% 9% 6% 3% 2% Sewer Revenue Increase 6% 6% 6% 6% 0% Effective Date Dec 1, 2015 May 1, 2016 May 1, 2017 May 1, 2018 May 1, 2019 Combined Fund Cash Balance with Financial Plan $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 End of Year Cash Balance Minimum Cash Balance 13 31 National Industry Trend
Measures the national average change in the cost of water and sewer service to households
Much more specific and relevant to utilities than overall CPI
5 year average annual increase = 6.3%; 10 year average annual increase = 6.0% 14 32 Rate Structure Analysis 33 FY 2016 Rate Structure Options
Three options for FY 16 rates:
“Across-the-board” application of increases
Alternative I - Adoption of a infrastructure replacement charge within fixed fee
Alternative II – Infrastructure replacement charge and uniform water rates
Future rate revenue increases (FY 17 and beyond) would be applied “across-the-board” to new FY 16 rate structure 16 34 Across the Board Increases Water Rates Current FY 16 FY 17 FY 18 FY 19 FY 20 Monthly Fixed Charge Meter Size 5/8 $6.55 $7.14 $7.78 $8.25 $8.50 $8.67 3/4 $8.54 $9.31 $10.15 $10.76 $11.08 $11.30 1 $12.57 $13.70 $14.93 $15.83 $16.31 $16.63 1 1/2 $22.56 $24.59 $26.80 $28.41 $29.26 $29.85 2 $34.59 $37.70 $41.10 $43.56 $44.87 $45.77 3 $62.68 $68.32 $74.47 $78.94 $81.31 $82.93 4 $102.80 $112.05 $122.14 $129.46 $133.35 $136.02 6 $203.02 $221.29 $241.21 $255.68 $263.35 $268.62 Usage Charges Tier 1 (0 - 1,500 cubic feet) $4.38 $4.77 $5.20 $5.52 $5.68 $5.80 Tier 2 (1,500 - 20,000 cubic feet) $4.05 $4.41 $4.81 $5.10 $5.25 $5.36 Tier 3 (Above 20,000 cubic feet) $3.92 $4.27 $4.66 $4.94 $5.08 $5.19 Sewer Rates Current FY 16 FY 17 FY 18 FY 19 FY 20 Monthly Fixed Charge Meter Size 5/8 $4.35 $4.61 $4.89 $5.18 $5.49 $5.49 3/4 $5.46 $5.79 $6.13 $6.50 $6.89 $6.89 1 $7.71 $8.17 $8.66 $9.18 $9.73 $9.73 1 1/2 $13.29 $14.09 $14.93 $15.83 $16.78 $16.78 2 $20.01 $21.21 $22.48 $23.83 $25.26 $25.26 3 $35.72 $37.86 $40.13 $42.54 $45.10 $45.10 4 $58.14 $61.63 $65.33 $69.25 $73.40 $73.40 6 $114.15 $121.00 $128.26 $135.95 $144.11 $144.11 Usage Charges Non-Industrial $2.53 $2.68 $2.84 $3.01 $3.19 $3.19 Industrial $3.80 $4.03 $4.27 $4.53 $4.80 $4.80 17 35 Alternative I – Infrastructure Replacement Charge
Structure designed to:
Provide specific funding for capital asset replacement
Provide revenue stability – fixed fee not based on metered water Water Current FY 16 FY 17 FY 18 FY 19 FY 20 Determination of Fixed Charge Infrastructure Replacement Charge (3/4" Meter) $2.00 $4.00 $6.00 $6.00 $6.00 Fixed Fee (3/4" Meter) $8.54 $8.54 $8.54 $8.54 $8.54 $8.54 Total Monthly Fixed Charge $8.54 $10.54 $12.54 $14.54 $14.54 $14.54 Sewer Current FY 16 FY 17 FY 18 FY 19 FY 20 Determination of Fixed Charge Infrastructure Replacement Charge (3/4" Meter) $1.00 $2.50 $3.50 $4.00 $4.00 Fixed Fee (3/4" Meter) $5.46 $5.46 $5.46 $5.46 $5.46 $5.46 Total Monthly Fixed Charge $5.46 $6.46 $7.96 $8.96 $9.46 $9.46 18 36 Alternative I – Infrastructure Replacement Charge Water Current FY 16 FY 17 FY 18 FY 19 FY 20 Total Monthly Fixed Charge Meter Size 5/8 $6.55 $8.08 $9.62 $11.15 $11.15 $11.15 3/4 $8.54 $10.54 $12.54 $14.54 $14.54 $14.54 1 $12.57 $15.51 $18.46 $21.40 $21.40 $21.40 1 1/2 $22.56 $27.84 $33.13 $38.41 $38.41 $38.41 2 $34.59 $42.69 $50.79 $58.89 $58.89 $58.89 3 $62.68 $77.36 $92.04 $106.72 $106.72 $106.72 4 $102.80 $126.87 $150.95 $175.02 $175.02 $175.02 6 $203.02 $250.57 $298.11 $345.66 $345.66 $345.66 Usage Charges (per 100 cubic feet) Tier 1 (0 - 1,500 cubic feet) $4.38 $4.59 $4.85 $4.95 $5.16 $5.31 Tier 2 (1,500 - 20,000 cubic feet) $4.05 $4.25 $4.48 $4.58 $4.77 $4.91 Tier 3 (Above 20,000 cubic feet) $3.92 $4.11 $4.34 $4.43 $4.62 $4.75 Sewer Current FY 16 FY 17 FY 18 FY 19 FY 20 Total Monthly Fixed Charge Meter Size 5/8 $4.35 $4.95 $6.11 $6.87 $7.26 $7.26 3/4 $5.46 $6.46 $7.96 $8.96 $9.46 $9.46 1 $7.71 $9.51 $11.72 $13.19 $13.92 $13.92 1 1/2 $13.29 $17.07 $21.03 $23.67 $24.99 $24.99 2 $20.01 $26.17 $32.24 $36.29 $38.32 $38.32 3 $35.72 $47.41 $58.42 $65.76 $69.43 $69.43 4 $58.14 $77.76 $95.82 $107.86 $113.87 $113.87 6 $114.15 $153.57 $189.23 $213.00 $224.89 $224.89 Usage Charges (per 100 cubic feet) Non-Industrial $2.53 $2.63 $2.65 $2.75 $2.91 $2.91 Industrial $3.80 $3.95 $3.98 $4.12 $4.38 $4.37 19 37 Alternative II – Infrastructure Replacement Charge and Uniform Water Rates Water Current FY 16 FY 17 FY 18 FY 19 FY 20 Total Monthly Fixed Charge Meter Size 5/8 $6.55 $8.08 $9.62 $11.15 $11.15 $11.15 3/4 $8.54 $10.54 $12.54 $14.54 $14.54 $14.54 1 $12.57 $15.51 $18.46 $21.40 $21.40 $21.40 1 1/2 $22.56 $27.84 $33.13 $38.41 $38.41 $38.41 2 $34.59 $42.69 $50.79 $58.89 $58.89 $58.89 3 $62.68 $77.36 $92.04 $106.72 $106.72 $106.72 4 $102.80 $126.87 $150.95 $175.02 $175.02 $175.02 6 $203.02 $250.57 $298.11 $345.66 $345.66 $345.66 Usage Charges (per 100 cubic feet) Uniform Rates per Ccf $4.45 $4.70 $4.80 $5.00 $5.14 Sewer Current FY 16 FY 17 FY 18 FY 19 FY 20 Total Monthly Fixed Charge Meter Size 5/8 $4.35 $4.95 $6.11 $6.87 $7.26 $7.26 3/4 $5.46 $6.46 $7.96 $8.96 $9.46 $9.46 1 $7.71 $9.51 $11.72 $13.19 $13.92 $13.92 1 1/2 $13.29 $17.07 $21.03 $23.67 $24.99 $24.99 2 $20.01 $26.17 $32.24 $36.29 $38.32 $38.32 3 $35.72 $47.41 $58.42 $65.76 $69.43 $69.43 4 $58.14 $77.76 $95.82 $107.86 $113.87 $113.87 6 $114.15 $153.57 $189.23 $213.00 $224.89 $224.89 Usage Charges (per 100 cubic feet) Non-Industrial $2.63 $2.65 $2.75 $2.91 $2.91 Industrial $3.95 $3.98 $4.12 $4.38 $4.37 20 38 Customer Impacts: Monthly Water Bills Current Structure Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $34 $37 $40 $42 $43 $44 Residential User (2,000 cf/month) $89 $97 $106 $112 $116 $118 Commercial (3,000 cf/month) $131 $143 $156 $165 $170 $174 Industrial (25,000 cf/month) $1,036 $1,129 $1,231 $1,305 $1,344 $1,371 Alternative I Structure Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $34 $37 $40 $43 $44 $45 Residential User (2,000 cf/month) $89 $95 $102 $106 $110 $112 Commercial (3,000 cf/month) $131 $140 $150 $156 $161 $165 Industrial (25,000 cf/month) $1,036 $1,098 $1,170 $1,207 $1,254 $1,286 Alternative II Structure Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $34 $36 $39 $42 $43 $44 Residential User (2,000 cf/month) $89 $94 $100 $104 $108 $111 Commercial (3,000 cf/month) $131 $140 $150 $156 $162 $166 Industrial (25,000 cf/month) $1,036 $1,147 $1,222 $1,260 $1,309 $1,343 21 39 Customer Impacts: Monthly Sewer Bills Current Structure Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $20 $21 $22 $24 $25 $25 Residential User (2,000 cf/month) $53 $56 $59 $63 $67 $67 Commercial (3,000 cf/month) $79 $83 $88 $94 $99 $99 Industrial (25,000 cf/month) $949 $1,006 $1,067 $1,131 $1,199 $1,199 Alternative I Structure Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $20 $21 $23 $25 $26 $26 Residential User (2,000 cf/month) $53 $56 $58 $60 $64 $64 Commercial (3,000 cf/month) $79 $83 $86 $90 $96 $96 Industrial (25,000 cf/month) $949 $996 $1,016 $1,057 $1,120 $1,120 22 40 Customer Impacts: Combined Monthly Bills Current Structure Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $53 $58 $62 $66 $69 $69 Residential User (2,000 cf/month) $142 $153 $165 $175 $182 $185 Commercial (3,000 cf/month) $210 $227 $244 $259 $270 $273 Industrial (25,000 cf/month) $1,985 $2,136 $2,298 $2,436 $2,543 $2,569 Alternative I Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $53 $58 $63 $67 $70 $71 Residential User (2,000 cf/month) $142 $151 $159 $166 $174 $176 Commercial (3,000 cf/month) $210 $223 $236 $246 $257 $261 Industrial (25,000 cf/month) $1,985 $2,095 $2,186 $2,265 $2,374 $2,406 Alternative II Current FY 16 FY 17 FY 18 FY 19 FY 20 Average Residential User (700 cf/month) $53 $57 $62 $66 $69 $70 Residential User (2,000 cf/month) $142 $149 $158 $165 $172 $175 Commercial (3,000 cf/month) $210 $224 $237 $246 $258 $261 Industrial (25,000 cf/month) $1,985 $2,144 $2,237 $2,318 $2,429 $2,463 23 41 Rate Structure Recommendation Recommend Alternative I rate structure for FY 2016
Fixed Monthly Fee that includes an Infrastructure Replacement Charge
Improves revenue stability
Provides dedicated funding source for infrastructure replacement
Maintain current block rate structure for water
Minimizes impacts on large water users 24 42 Benchmarking Results 43 Water and Sewer Bill Comparison: Residential Customer with 3/4” Meter 700 cubic feet West Chicago Current Geneva Bartlett Batavia Recommended Geneva FY 16 St. Charles South Elgin $- $10 $20 $30 $40 $50 $60 $70 Water Sewer 26 44 Rate Structure Comparison Monthly Water and Sewer Fixed Charge (3/4" Meter) South Elgin $41 St. Charles $23 Recommended Geneva FY 16 $17 Current Geneva $14 Batavia $12 West Chicago $12 Bartlett $11 Water Usage Rate Structure Sewer Usage Rate Structure Bartlett Uniform Uniform Batavia Uniform Uniform Geneva Declining Block Uniform South Elgin Inclining Block Uniform St. Charles Seasonal Uniform West Chicago Uniform Uniform 27  45 Summary of Recommendations
Adopt 4-year schedule of water and sewer rate adjustments
Perform periodic revenue sufficiency analyses
Account for changes in dynamic environment and account for impacts of system efficiency initiatives as they occur
Modify rate adjustment plan (up or down) to ensure sustainability of funds and satisfaction of performance goals/targets
Adopt Alternative I rate structure for FY 2016
Improve fiscal stability & cost recovery with Infrastructure Replacement Charge 28  46 Questions & Discussion Contact Information: David Hyder, Vice President Office: 240-544-5425 Mobile: 443-538-1175 Email: dhyder@burtonandassociates.com 29