www.sonomacountywater.org

Proposed 2010/11 BudgetGrant DavisInterim General ManagerGrant.davis@scwa.ca.govMichael ThompsonDeputy Chief EngineerMichael.thompson@scwa.ca.gov

Health and SafetySCWA is required by state and federal drinking water regulations to provide a safe, reliable water supply that provides water on demand 24/7 to its customers for health and safety and other purposes.

Restructured Agreement• A legal document between SCWA and

contractors• Spells out water rate calculations• Section 2.10 – The Agency shall

operate and maintain the Transmission System in a good state of repair.

Proposed Wholesale Rates• Submitted increase of 7.48%, due to

– Regulatory Requirements for Water Supply

– Increased Level of Service– Decreased 2009 Water Sales: 8.7%

decline – Continuing Groundwater Studies

• Revised increase of 6.93% ($1.35 per month for average household)

Revised Rate Increase• Reduced rate to 6.93% due to:

— Cuts in Top Management Staff— Savings of $400,000 Overall— $150,000 in Water Transmission Budget

— Rate Increase on Average = $1.35 per Household per Month

$0.002$3.06

$2.49

Per gallon costs:

$16.00

$45.00

$11.35

Water Transmission Budget

Operations and Maintenance $20.9 million

Capital Projects$3.3 millionDebt Service

$3.5 million

B.O. Compliance, Water Supply Planning, Water Con-

servation $4.4 million

FY 2010/11 Budgeted Expenses Total Expenses = $32.1 million

Rate Setting CalculationCost of

Operations and MaintenanceWater Sold =Cost of Water

(Dollars per acre-foot)

Water Sold = Lesser of:

Average of last 3 years annual

water deliveries

Last 12 months of

actual water deliveries

or

2009 Wholesale Per Acre Foot Costs

2009 Per Acre Foot Costs$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000Sonoma County Water Agency

Santa Clara Valley Water District

San Diego County Water Authority

Los Angeles Metropol-itan Water District

Zone 7 Water Agency (Pleasanton, Livermore)

Town of WindsorValley of the Moon Water District

North Marin Water DistrictCity of CotatiCity of Napa

Alameda County Water DistrictEast Bay Municipal Utilities District

City of PetalumaCity of Rohnert ParkCity of San Francisco

City of VallejoCity of Santa Rosa

San Jose Water CompanyContra Costa Water Distrct

City of SonomaMarin Municipal Water District

Mid-Peninsula Water District

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900

$429$481

$495$501

$516$529

$543$573

$595$615$622

$637$672$683$696

$723$801

Average Annual Residential Water Bill Cost of SCWA Water

For average single-family home water use = 124,916 gallons - 2/12/10 Source: NMWD

SCWA prime contractors

Not SCWA prime contractors

O&M Costs Decreased 9%• O&M costs have decreased 9% over

the past 3 years.– Mandatory time off, salary freezes, staff

reductions– Removing half of the water supply wells

from service– Reduced power costs– Deferring maintenance and equipment

replacement

Total O&M Costs

07-08 Actual 08-09 Actual 09-10 Budgeted 10-11 Proposed $19,000,000

$20,000,000

$21,000,000

$22,000,000

$23,000,000

$24,000,000

$49,000,000

$51,000,000

$53,000,000

$55,000,000

$57,000,000

$59,000,000

$61,000,000

$63,000,000

$65,000,000

Budgeted O&M Costs - Water Contractors and SCWA Water Transmission System

Water Contractors

SCWA

www.sonomacountywater.org

Proposed 2010/11 BudgetGrant DavisInterim General ManagerGrant.davis@scwa.ca.govMichael ThompsonDeputy Chief EngineerMichael.thompson@scwa.ca.gov

Contractor Water Rate Increases

SCWA Marin Municipal Wa-ter District

City of Santa Rosa North Marin Water District

Town of Windsor0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

6.93%

9.8%10.8%

11.00%

12.36%

0.02796

Water Rate Increases - 2010/2011

07-08 08-09 09-10 Estimated $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$9,936,655 $9,607,521 $9,908,597

$14,664,121 $14,304,814 $15,156,088

Santa Rosa Water Service Costs

07-08 08-09 09-10 Estimated 10-11 Proposed $15,000,000

$19,000,000

$23,000,000

$27,000,000

$31,000,000

O&M Costs - City of Santa Rosa Subregional System and SCWA Water Transmission System

Subregional System

SCWA

07-08 08-09 09-10 Budget $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$4,409,007 $4,800,000 $4,857,100

$6,013,047

$7,708,250

$10,792,350

Petaluma Water Service Costs

Water From SCWA All Other Costs

07-08 08-09 09-10 Estimated $-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$378,629 $308,178 $416,808

$765,731 $830,578

$1,676,603

Cotati Water Service Costs

07-08 08-09 Est 09-10 Budget $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$3,852,900 $4,070,000 $4,020,000

$7,767,322

$8,731,000 $8,690,000

North Marin Water District Costs

07-08 08-09 09-10 Estimated $-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$2,213,981 $1,627,463 $1,392,560

$4,458,772

$3,953,005 $3,837,114

Rohnert Park Water Service Costs

07-08 08-09 09-10 Budget $-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$1,023,763 $1,001,982 $1,115,161

$2,562,581

$2,083,084

$2,738,178

Sonoma Water Service Costs

07-08 08-09 09-10 Budget $-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$1,358,778 $1,365,000 $1,641,330

$1,580,690 $1,760,660

$1,983,268

Valley of the Moon WD Costs

07-08 08-09 Est. 09-10 Budgeted $-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$426,666 $430,000 $722,000

$4,783,631 $5,043,704

$5,881,004

Windsor Water Service Costs

07-08 Actual 08-09 Actual 09-10 Budgeted 10-11 Proposed $12,000,000

$13,000,000

$14,000,000

$15,000,000

$16,000,000

$17,000,000

$18,000,000

$30,000,000

$32,000,000

$34,000,000

$36,000,000

$38,000,000

$40,000,000

$42,000,000

$44,000,000

Budgeted O&M Costs Less Water Purchases (Contractors) and Power and Chemicals (Agency)

Water Contractors

SCWA

07-08 Actual 08-09 Actual 09-10 Budgeted 10-11 Proposed $7,000,000

$9,000,000

$11,000,000

$13,000,000

$15,000,000

$8,000,000

$9,500,000

$11,000,000

$12,500,000

$14,000,000

$15,500,000

Salaries and Benefits - Water Contractor and SCWA Water Transmission System

Water Contractors

SCWA

Sonoma Valley Sewer Charges

3,000 4,500 6,000 $45.00

$55.00

$65.00

$75.00

$48.60

$61.40

$73.40

$57.83

Sewer Service Charge Comparison Sonoma Valley CSD

Average Other Systems Sonoma Valley

Monthly Volume In Gallons

Mon

thly

Ser

vice

Cha

rge

Airport/Larkfield/Wikiup Charges

3,000 4,500 6,000 $45.00

$55.00

$65.00

$75.00

$48.60

$61.40

$73.40

$49.50

Sewer Service Charge Comparison - Airport/Larkfield/Wikiup Sanitation Zone

Average Other Systems Airport

Monthly Volume in Gallons

Mon

thly

Ser

vice

Cha

rge

South Park Sewer Charges

3,000 4,500 6,000 $35.00

$45.00

$55.00

$65.00

$75.00

$48.60

$61.40

$73.40

$64.83

Sewer Service Charge Comparison South Park CSD

Average Other Systems South Park CSD

Monthly Volume in Gallons

Mon

thly

Ser

vice

Cha

rge

Local Service Charge Comparisons

Geyse

rville

SZ

Penng

rove S

Z

Sea R

anch

SZ

Occide

ntal C

SD

Russia

n Rive

r CSD

Graton

CSD

$30

$60

$90

$120

$150

$67

$88 $73

$127

$92

$119

Annual Service Charges - Small Systems

Annu

al S

ervi

ce C

harg

e

Rate Increase Comparison

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%

6.1%

9.7%

Average Sewer Rate Increases Last 5 Years

Comparable Maximum Rate Increases

Average Maximum Rate Increase - Agency Managed Wastewater Systems Average Maximum Rate Increase - Other Wastewater Systems in Sonoma County

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

6.3%

16.7%

Average Maximum Rate Increase