Go Goleta Water D r Distri rict Cost of Service and Rate Design - - PowerPoint PPT Presentation

▶
go goleta
SMART_READER_LITE
LIVE PREVIEW

Go Goleta Water D r Distri rict Cost of Service and Rate Design - - PowerPoint PPT Presentation

May 23, 2023 258 likes •685 views

Go Goleta Water D r Distri rict Cost of Service and Rate Design Study Admin in C Commit ittee ee Meet eetin ing March 25 25, 20 2020 20 ITEM 1 PRESENTATION AGEN ENDA Financial Plan options review Cost of Service

slide-1
SLIDE 1

Go Goleta

Cost of Service and Rate Design Study

Admin in C Commit ittee ee Meet eetin ing– March 25 25, 20 2020 20

Water D r Distri rict

ITEM 1 PRESENTATION

slide-2
SLIDE 2

AGEN ENDA

  • Financial Plan options review
  • Cost of Service

› Methodology › Assumptions › Customer class cost of service

  • Rate Design

› Rate scenarios › Proposed modifications to residential tiers › Fixed charges › Commodity rates › Customer bill impacts

  • Neighboring Agency bill comparison
  • Project schedule

2

slide-3
SLIDE 3

RATE M MODEL OPTIONS

3

Current Modified Current

  • Higher Overall Rate Increases
  • No Improvement In Revenue Stability
  • No Multi-Generational Cost

Apportionment

  • Higher Overall Rate Increases
  • Enhanced Revenue Stability
  • No Multi-Generational Cost

Apportionment Refi with Proceeds

  • Lower Overall Rate Increases
  • No Improvement In Revenue Stability
  • Multi-Generational Cost

Apportionment

  • Lower Overall Rate Increases
  • Enhanced Revenue Stability
  • Multi-Generational Cost

Apportionment % of Fixed/Variable Revenue Debt

slide-4
SLIDE 4

CHANGES ES S SINCE E LAST STUDY

  • New Normal for Water Demand

› 20% reduction in baseline demand for FY 2020 relative to historical demand

  • Structural Changes in Operating Costs
  • Increased capital spending due to drought, regulatory

requirements, and deferred repair and replacement

  • Rescinding of drought declaration and associated

drought surcharges ($9M in revenue in FY 201 9)

  • Reserve policy target increased from $6 million to $1

1 .5 million

  • Increased costs and decreased revenues equals

reliance on cash reserves

4

slide-5
SLIDE 5

FINANCIAL A ASSU SSUMPT PTIONS

  • Expenses Consistent with 5-Y

ear Expenditure Forecast

› O&M Budget › Adopted IIP

  • Required debt coverage of 1

.25 times annual debt service

› Net revenue / debt service

  • Reserve targets:

› Operating Reserve: 30 days of O&M costs

– Excludes debt service & depreciation

› T

  • tal Reserve target: $1

1 .5M unrestricted cash

  • Maintain revenue split: 30%

fixed/ 70% variable

5

slide-6
SLIDE 6

FINA NANC NCIAL PLAN N SCENA NARIO O 1 : NO R NO REFI

  • All expenditures funded through rates.
  • Incorporates a baseline demand of 1

0,056 AF of potable water with 0.5% annual growth.

  • Achieves Reserve Policy Target of $1

1 .5M in FY 2025.

6

Descrip iptio ion FY 2 2021 21 FY 2 2022 22 FY 2 2023 23 FY 2 2024 24 FY 2 2025 25 Revenue Shortfall $6,459,423 $10,969,257 $15,155,098 $19,726,308 $24,757,554 Required Increase 19.0% 11.0% 9.0% 9.0% 9.0%

slide-7
SLIDE 7

FINA NANC NCIAL PLAN N SCENA NARIO O 2: REFI W W/ N NEW P PROCEED EDS

  • Refinance in FY 2023 with estimated $30M in proceeds.
  • Incorporates a baseline demand of 1

0,056 AF of potable water with 0.5% annual growth.

  • Achieves Reserve Policy Target of $1

1 .5M in FY2024.

7

Descrip iptio ion FY 2 2021 21 FY 2 2022 22 FY 2 2023 23 FY 2 2024 24 FY 2 2025 25 Revenue Shortfall $5,439,514 $11,020,531 $12,021,496 $13,020,975 $14,052,483 Required Increase 16.0% 14.0% 2.0% 2.0% 2.0%

slide-8
SLIDE 8

8

Cost of S f Ser ervice

slide-9
SLIDE 9

CO COST OF SERVICE CE

  • Cost of service allows the matching of rates charged with

the costs of serving each class and tier of customer

  • The total “revenue requirement” is recovered equitably

across users based on their specific requirements and use

  • f the water system
  • Revenue requirement = cost of service

› O&M expenses › Capital expenses (IIP) › Debt Service › Reserve Funding

slide-10
SLIDE 10

COS OST OF OF SERVICE A ALLOC OCATION ON PR PROCESS SS

  • Identify annual revenue requirement by function
  • Allocate functional costs to appropriate cost

components

  • Determine customer class characteristics
  • Develop unit costs of service for each cost

component

  • Distribute (allocate) costs to customer classes

1

slide-11
SLIDE 11

BASE SE-EXTRA CAPACITY M Y METHOD AWWA MANUAL M17TH EDITION

SUPPLY BASE DELIVERY PEAKING METER MAINTENANCE CUSTOMER SERVICE FIRE

slide-12
SLIDE 12

DISTR TRIBUTE TE COST T COMPONENTS TO CUSTOMER ER CLASSES ES

CUSTOMER CLASSES (Cost to Serve Each Class)

(Single Family, Urban, Rec. Irrigation, etc.)

SUPPLY Annual Demand BASE/ DELIVERY COSTS Annual Demand METER SERVICE Meter Replacement Costs CUSTOMER SERVICE # of Bills in Each Class FIRE Fire Connection Size / Fire Hydrants PEAKING Peaking Factors or Meter Cap Ratios

slide-13
SLIDE 13

COMMODITY R TY RATE TE D DERIVATI TION

TOTAL VOLUMETRIC RATE

($ /HCF)

EXTRA CAPACITY

(Peaking Costs) Peaking rate ($ /HCF)

CONSERVATION

Conservation program rate ($ /HCF)

DELIVERY

Delivery rate ($ /HCF)

SUPPLY

Water supply rate ($ /HCF) 1 3

slide-14
SLIDE 14

COST OF SE SERVICE ASSU SSUMPT PTIONS

  • Three separate systems

› Recycled Water – Purchased water costs and GWD O&M costs › GWC – Interruptible service, no SWP water, no groundwater, no treatment costs › Potable System

– Single Family Residential: Tiers treated as a sub-class identifying the cost of service for each tier – Urban Agriculture: Groundwater costs allocated for increased reliability but no state water; no treatment costs – All other classes uniform rate and proportional cost to serve

  • All classes pay the same schedule of fixed charges by meter

size

– Fixed charges recover meter maintenance costs, customer service and billing costs, and a share of capacity (peaking) costs

1 4

slide-15
SLIDE 15

GWD SYSTEM COST COMPONENTS

  • Cachuma Supply – allocated to all commodity rates

except Recycled

  • CCWA Supply – allocated to all commodity rates except

Recycled, Urban Ag, and GWC

  • Base Delivery – cost of delivering potable water to

meet average daily demand

  • Peaking – extra capacity costs associated with meeting

max day and max hour customer demands

  • Recycled Water– direct costs associated with the

recycled system

  • GWC – direct costs associated with the GWC system

1 5

slide-16
SLIDE 16

SYSTEM C COS OST COM OMPONE ONENT NTS ( (CONT ONT.)

  • Urban Ag – O&M and capital costs allocated based on

the proportional share of water use and metered connections

  • Fire Protection – costs associated with public fire

hydrants and private fire lines

  • Meters – fixed costs to service and maintain meters
  • Customer – costs associated with billing & customer

service

  • Conservation – costs associated with conservation/

efficiency programs

  • General – all other costs not directly associated with
  • ther components

1 6

slide-17
SLIDE 17

COST COMPONENT R REVISIONS

  • Share of Cachuma and groundwater to Urban Ag

reduced due to declining demand relative to system demand

  • Urban Ag allocated a share of storage and distribution

costs based on connections (0.8%

  • f total)
  • $423k in Recycled Water costs allocated to

Conservation to account for recycled water contracts

  • Cachuma & CCWA supply costs treated as separate

components to differentiate costs within the tiered rates

  • Updated fire protection analysis

1 7

slide-18
SLIDE 18

COST OF SER ERVICE E RES ESULTS BY COST COMPONENT

1 8

Cost Component $ % Cachuma Supply $4,664,905 11.8% CCWA Supply $9,822,790 24.9% Base $8,902,644 22.6% Max Day $766,372 1.9% Max Hour $102,493 0.3% Recycled Water $863,636 2.2% Fire Protection $8,516 0.0% Meters $10,816,790 27.4% Customer $1,344,217 3.4% Conservation $2,288,770 5.8% GWC $183,810 0.5% Urban Ag $405,500 1.0% Revenue Offsets ($733,965)

  • 1.9%

Total $39,436,479 100.0%

slide-19
SLIDE 19

ALLOCATION OF COSTS TO CUSTOMER ER C CLASSES ES

1 9

Description Cachuma Supply CCWA Supply Base Max Day Max Hour Recycled Water Fire Protection Meters Customer Conservation GWC Urban Ag Revenue Offsets Total ($) Fixed Meter Charges $0 $0 $0 $0 $0 $0 $0 $10,816,790 $1,307,274 $0 $0 $0 $0 $12,124,064 Fixed Fire Line Charges $0 $0 $0 $0 $0 $0 $8,516 $0 $36,943 $0 $0 $0 $0 $45,459 SFR $1,578,115 $4,025,941 $3,766,740 $348,217 $31,909 $0 $0 $0 $0 $774,280 $0 $0 ($231,521) $10,293,681 Urban $1,961,213 $5,283,561 $4,681,140 $318,056 $61,494 $0 $0 $0 $0 $962,241 $0 $0 ($287,724) $12,979,981 Recreation Irrigation $190,528 $513,289 $454,764 $100,100 $9,091 $0 $0 $0 $0 $93,480 $0 $0 ($27,952) $1,333,300 Urban Agriculture $502,315 $0 $0 $0 $0 $0 $0 $0 $0 $246,454 $0 $405,500 ($73,693) $1,080,575 GWC $432,734 $0 $0 $0 $0 $0 $0 $0 $0 $212,315 $183,810 $0 ($63,485) $765,374 Recycled $0 $0 $0 $0 $0 $863,636 $0 $0 $0 $0 $0 $0 ($49,591) $814,046 Total $4,664,905 $9,822,790 $8,902,644 $766,372 $102,493 $863,636 $8,516 $10,816,790 $1,344,217 $2,288,770 $183,810 $405,500 ($733,965) $39,436,479
slide-20
SLIDE 20

COST TO SER ERVE E EA EACH CUSTOMER ER CLASS SS

20

Charge/Customer Class Current COS Proposed No Refi COS Proposed Refi COS Fixed Meter Charges $10,377,970 $12,551,332 $12,124,064 Fixed Fire Line Charges $62,472 $45,777 $45,459 SFR Consumption Charges $8,723,329 $10,527,508 $10,293,681 Urban Consumption Charges $11,291,270 $13,267,231 $12,979,981 Recreation Irrigation Consumption Charges $1,096,461 $1,364,468 $1,333,300 Urban Agriculture Consumption Charges $999,912 $1,112,687 $1,080,575 GWC Consumption Charges $649,116 $778,490 $765,374 Recycled Consumption Charges $796,434 $808,894 $814,046 Total $33,996,964 $40,456,388 $39,436,479

slide-21
SLIDE 21

21

Rate D e Des esign

slide-22
SLIDE 22

RA RATE S SCENARI RIOS

22

Scen enario io Deb ebt Ref efin inancin ing Tier ier Def efin init itio ions Scenario 1 a No Refi Current Scenario 1 b No Refi Revised Scenario 2a Refi w/ new proceeds Current Scenario 2b Refi w/ new proceeds Revised

  • Rates shown in each scenario include the first year

revenue increase required for that scenario

slide-23
SLIDE 23

MET ETER ER CHARGE M E MET ETHODOLOGY

  • Components
  • Customer – applies equally to all customers for billing,

etc.

  • Meter – varies with size (hydraulic capacity) of each

meter

  • Peaking – excluded for “Ultra-Low Flow” customers who

do not peak (first tier). Allocated to all other customers based on meter size (hydraulic capacity).

23

slide-24
SLIDE 24

MET ETER ER CHARGE M E MET ETHODOLOGY

Customer Component + Meter Component + Peaking Component = Proposed Monthly Charge

24

Water Meter Size Number of Meters (FY 2021) AWWA Capacity Ratio Meter Peaking Ratio Customer Component ($/Meter) Meter Component ($/Meter) Peaking Component ($/Meter) Proposed FY 2021 Monthly Charge 5/8" & 3/4" - Utlra-Low Flow 7,640 0.50 0.00 $6.48 $15.42 $0.00 $21.90 5/8" & 3/4" - Low Flow 4,095 0.67 0.67 $6.48 $20.55 $12.05 $39.09 5/8" & 3/4" - All Other 2,136 1.00 1.00 $6.48 $30.83 $18.08 $55.40 1" 1,805 1.67 1.67 $6.48 $51.39 $30.13 $88.00 1 1/2" 474 3.33 3.33 $6.48 $102.77 $60.26 $169.52 2" 555 5.33 5.33 $6.48 $164.44 $96.41 $267.33 3" 26 11.67 11.67 $6.48 $359.71 $210.89 $577.09 4" 33 21.00 21.00 $6.48 $647.48 $379.61 $1,033.57 6" 33 46.67 46.67 $6.48 $1,438.84 $843.57 $2,288.90 8" 7 80.00 80.00 $6.48 $2,466.59 $1,446.13 $3,919.20 10" 4 126.67 126.67 $6.48 $3,905.43 $2,289.70 $6,201.61

slide-25
SLIDE 25

EXIS ISTIN ING R RESID IDENTIA IAL T TIE IER DEFIN INIT ITIO IONS

  • Tier 1

should provide for essential use per dwelling unit

› City of Goleta: 2.8 people per SFR › State target of 55 gpcd* for indoor use › Equals approximately 6 hcf**/month

  • Tier 2 should provide for average usage

› Historical average SFR consumption is 1 3.5 hcf/month › Historical average summer consumption: 1 6.3 hcf/month

  • Tier 3

› Consists of the balance of water demand › Upper tier should provide price signal for conservation and more expensive water supplies

*gpcd – gallons per capita per day **hcf – hundred cubic feet = 748 gallons

25

slide-26
SLIDE 26

PROPOSED RESIDENTIAL T TIER MODIF IFIC ICATIO IONS

26

  • Basis for revised tier breakpoints:

› Tier 1 (6 HCF): based on average residential water use during lowest use month in FY 201 9 (March 201 9)

– Consistent with existing approach and efficient indoor needs

› Tier 2 (1 2 HCF): based on average residential water use during highest use month in FY 201 9 (August 201 8)

– Consistent with existing approach for Tier 2 Resid identia ial l Tie ier Cur urrent nt Rev evised ed Tier 1 0-6 HCF/Month 0-6 HCF/Month Tier 2 7-1 6 HCF/Month 7-1 2 HCF/Month Tier 3 >1 6 HCF/Month >1 2 HCF/Month

slide-27
SLIDE 27

PROPOSED RESIDENTIAL T TIER MODIF IFIC ICATIO IONS

27

Wa Water Use Ti Tier 1 Ti Tier 2 Ti Tier 3 Proposed 57.3% 23.1 % 1 9.7% Current 57.3% 29.7% 1 3.1 % Customer Bills ills Ti Tier 1 Ti Tier 2 Ti Tier 3 Proposed 51 .7% 30.9% 1 7.4% Current 51 .7% 38.7% 9.6%

slide-28
SLIDE 28

COM OMMOD ODITY R RATE M METHOD ODOL OLOG OGY

  • Potable Classes* Cost Components

› Cachuma Supply › CCWA Supply › Base Delivery › Peaking (Max Day/Max Hour) › Conservation › Revenue Offset

  • Urban Agriculture

› Cachuma, Urban Ag, Conservation, Revenue Offset

  • GWC

› Cachuma, GWC, Conservation, Revenue Offset

  • Recycled Water

› Recycled Water, Revenue Offset

28

*Potable Classes = SFR, Urban, and Recreation Irrigation

slide-29
SLIDE 29

COMMODITY R Y RATE M METHODOLOGY Y VIS ISUALIZ IZED

29 Customer Class Cachuma Supply CCWA Supply Base Peaking Recycled Water Conser- vation GWC Urban Ag Revenue Offsets SFR Tier 1

✓ ✓ ✓ ✓

SFR Tier 2

✓ ✓ ✓ ✓ ✓

SFR Tier 3

✓ ✓ ✓ ✓ ✓

Urban

✓ ✓ ✓ ✓ ✓ ✓

Recreation Irrigation

✓ ✓ ✓ ✓ ✓ ✓

Urban Agriculture

✓ ✓ ✓ ✓

GWC

✓ ✓ ✓ ✓

Recycled

✓ ✓

slide-30
SLIDE 30

COM OMMOD ODITY R RATE M METHOD ODOL OLOG OGY

30

Customer Class/Tier Cachuma Supply Unit Rate ($/HCF) CCWA Supply Unit Rate ($/HCF) Base Unit Rate ($/HCF) Peaking Unit Rate ($/HCF) Conservation Unit Rate ($/HCF) Urban Ag Unit Rate ($/HCF) GWC Unit Rate ($/HCF) Recycled Water Unit Rate ($/HCF) Revenue Offset Unit Rate ($/HCF) Proposed FY 2021 Rate ($/HCF) SFR Tier 1 $1.060 $2.355 $2.530 $0.000 $0.000 $0.000 $0.000 $0.000 ($0.272) $5.68 SFR Tier 2 $1.060 $2.355 $2.530 $0.433 $1.217 $0.000 $0.000 $0.000 $0.000 $7.60 SFR Tier 3 $1.060 $4.127 $2.530 $0.790 $1.217 $0.000 $0.000 $0.000 $0.000 $9.73 Urban $1.060 $2.856 $2.530 $0.204 $0.520 $0.000 $0.000 $0.000 ($0.156) $7.02 Recreation Irrigation $1.060 $2.856 $2.530 $0.607 $0.520 $0.000 $0.000 $0.000 ($0.156) $7.42 Urban Agriculture $1.060 $0.000 $0.000 $0.000 $0.520 $0.856 $0.000 $0.000 ($0.156) $2.29 Goleta West Conduit $1.060 $0.000 $0.000 $0.000 $0.520 $0.000 $0.450 $0.000 ($0.156) $1.88 Recycled $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $2.708 ($0.156) $2.56

slide-31
SLIDE 31

SC SCENARIO 1 1 A PR PROPO POSE SED R RATES: S: NO RE REFI WITH CURRE RRENT T TIERS RS

31

Fixed Monthly Charges Number of Meters (FY 2021) Proposed FY 2021 Monthly Charge Current Monthly Charge Difference ($) 5/8" & 3/4" - Utlra-Low Flow 7,640 $22.71 $16.41 $6.30 5/8" & 3/4" - Low Flow 5,119 $41.03 $33.86 $7.17 5/8" & 3/4" - All Other 1,112 $58.32 $51.46 $6.86 1" 1,805 $92.90 $78.99 $13.91 1 1/2" 474 $179.35 $147.82 $31.53 2" 555 $283.09 $230.42 $52.67 3" 26 $611.61 $491.95 $119.66 4" 33 $1,095.73 $877.35 $218.38 6" 33 $2,427.08 $1,937.26 $489.82 8" 7 $4,156.10 $3,313.75 $842.35 10" 4 $6,576.73 $5,240.86 $1,335.87 Private Fire Line 475 $9.62 $10.96 ($1.34) Commodity Rates FY 2021 Water Use (HCF) Proposed FY 2021 Rate ($/HCF) Current Rate ($/HCF) Difference ($) SFR Tier 1 852,366 $5.79 $5.26 $0.53 SFR Tier 2 441,933 $8.00 $6.46 $1.54 SFR Tier 3 194,522 $10.62 $7.12 $3.50 Urban 1,850,242 $7.17 $6.10 $1.07 Recreation Irrigation 179,748 $7.60 $6.10 $1.50 Urban Agriculture 473,892 $2.35 $2.11 $0.24 Goleta West Conduit 408,249 $1.91 $1.59 $0.32 Recycled 318,898 $3.87 $3.79 $0.08

slide-32
SLIDE 32

SC SCENARIO 1 1 B PR PROPO POSE SED R RATES: S: NO REFI WITH R REVISED T TIERS

32

Fixed Monthly Charges Number of Meters (FY 2021) Proposed FY 2021 Monthly Charge Current Monthly Charge Difference ($) 5/8" & 3/4" - Utlra-Low Flow 7,640 $22.43 $16.41 $6.02 5/8" & 3/4" - Low Flow 4,095 $40.38 $33.86 $6.52 5/8" & 3/4" - All Other 2,136 $57.35 $51.46 $5.89 1" 1,805 $91.28 $78.99 $12.29 1 1/2" 474 $176.12 $147.82 $28.30 2" 555 $277.91 $230.42 $47.49 3" 26 $600.28 $491.95 $108.33 4" 33 $1,075.34 $877.35 $197.99 6" 33 $2,381.76 $1,937.26 $444.50 8" 7 $4,078.41 $3,313.75 $764.66 10" 4 $6,453.72 $5,240.86 $1,212.86 Private Fire Line 475 $9.62 $10.96 ($1.34) Commodity Rates FY 2021 Water Use (HCF) Proposed FY 2021 Rate ($/HCF) Current Rate ($/HCF) Difference ($) SFR Tier 1 852,366 $5.79 $5.26 $0.53 SFR Tier 2 343,387 $7.81 $6.46 $1.35 SFR Tier 3 293,068 $9.96 $7.12 $2.84 Urban 1,850,242 $7.17 $6.10 $1.07 Recreation Irrigation 179,748 $7.60 $6.10 $1.50 Urban Agriculture 473,892 $2.35 $2.11 $0.24 Goleta West Conduit 408,249 $1.91 $1.59 $0.32 Recycled 318,898 $3.87 $3.79 $0.08

slide-33
SLIDE 33

SC SCENARIO 2 2A PR PROPO POSE SED R RATES: S: RE REFI W WITH C CURRE RRENT T TIERS RS

33

Fixed Monthly Charges Number of Meters (FY 2021) Proposed FY 2021 Monthly Charge Current Monthly Charge Difference ($) 5/8" & 3/4" - Utlra-Low Flow 7,640 $22.17 $16.41 $5.76 5/8" & 3/4" - Low Flow 5,119 $39.71 $33.86 $5.85 5/8" & 3/4" - All Other 1,112 $56.33 $51.46 $4.87 1" 1,805 $89.56 $78.99 $10.57 1 1/2" 474 $172.62 $147.82 $24.80 2" 555 $272.31 $230.42 $41.89 3" 26 $587.97 $491.95 $96.02 4" 33 $1,053.16 $877.35 $175.81 6" 33 $2,332.43 $1,937.26 $395.17 8" 7 $3,993.81 $3,313.75 $680.06 10" 4 $6,319.75 $5,240.86 $1,078.89 Private Fire Line 475 $9.47 $10.96 ($1.49) Commodity Rates FY 2021 Water Use (HCF) Proposed FY 2021 Rate ($/HCF) Current Rate ($/HCF) Difference ($) SFR Tier 1 852,366 $5.68 $5.26 $0.42 SFR Tier 2 441,933 $7.78 $6.46 $1.32 SFR Tier 3 194,522 $10.39 $7.12 $3.27 Urban 1,850,242 $7.02 $6.10 $0.92 Recreation Irrigation 179,748 $7.42 $6.10 $1.32 Urban Agriculture 473,892 $2.29 $2.11 $0.18 Goleta West Conduit 408,249 $1.88 $1.59 $0.29 Recycled 318,898 $3.89 $3.79 $0.10

slide-34
SLIDE 34

SC SCENARIO 2 2B PR PROPO POSE SED RATES: S: REFI W WITH R REV EVISED TIERS

34

Fixed Monthly Charges Number of Meters (FY 2021) Proposed FY 2021 Monthly Charge Current Monthly Charge Difference ($) 5/8" & 3/4" - Utlra-Low Flow 7,640 $21.90 $16.41 $5.49 5/8" & 3/4" - Low Flow 4,095 $39.09 $33.86 $5.23 5/8" & 3/4" - All Other 2,136 $55.40 $51.46 $3.94 1" 1,805 $88.00 $78.99 $9.01 1 1/2" 474 $169.52 $147.82 $21.70 2" 555 $267.33 $230.42 $36.91 3" 26 $577.09 $491.95 $85.14 4" 33 $1,033.57 $877.35 $156.22 6" 33 $2,288.90 $1,937.26 $351.64 8" 7 $3,919.20 $3,313.75 $605.45 10" 4 $6,201.61 $5,240.86 $960.75 Private Fire Line 475 $9.47 $10.96 ($1.49) Commodity Rates FY 2021 Water Use (HCF) Proposed FY 2021 Rate ($/HCF) Current Rate ($/HCF) Difference ($) SFR Tier 1 852,366 $5.68 $5.26 $0.42 SFR Tier 2 343,387 $7.60 $6.46 $1.14 SFR Tier 3 293,068 $9.73 $7.12 $2.61 Urban 1,850,242 $7.02 $6.10 $0.92 Recreation Irrigation 179,748 $7.42 $6.10 $1.32 Urban Agriculture 473,892 $2.29 $2.11 $0.18 Goleta West Conduit 408,249 $1.88 $1.59 $0.29 Recycled 318,898 $3.89 $3.79 $0.10

slide-35
SLIDE 35

SCENARIO IO 1 1 A M MONTHL Y BIL BILL IM IMPACTS: NO RE REFI WITH CURRE RRENT T TIERS RS

35

slide-36
SLIDE 36

SCENARIO IO 1 1 B B MONTHL Y BIL BILL IM IMPACTS: NO REFI WITH R REVISED T TIERS

36

slide-37
SLIDE 37

SCENARIO IO 2 2A M MONTHL Y BIL BILL IM IMPACTS: RE REFI W WITH C CURRE RRENT T TIERS RS

37

slide-38
SLIDE 38

SCENARIO IO 2 2B M B MONTHL Y BIL BILL IM IMPACTS: REFI W WITH R REV EVISED TIERS

38

slide-39
SLIDE 39

NE NEIGHBOR ORING NG A AGENC NCY MONT ONTHL Y BILL C COM OMPARISON ON

39

slide-40
SLIDE 40

SCHED EDULE & E & N NEX EXT STEP EPS

Meeting ng Sche hedul ule Ac Action Date Administration Committee Receive Cost of Study and Rate Design Study Presentation 2/26/2020 Administration Committee Consider Cost of Service analysis and rate options 3/25/2020 Board of Directors Consider Cost of Service analysis and rate options 4/30/2020 Board of Directors Select preferred rate structure 5/4/2020 Board of Directors Public Hearing to adopt rates 6/23/2020 Rates Effective N/A 7/1 /2020

40

slide-41
SLIDE 41

41

Conta tacts ts: Sudhir ir Pardiw iwala la– P: 6 626.583. 3.1 894 / 4 / E: s spardiw iwala la@ raftelis elis.com Kev evin in Kostiu iuk – P: 2 21 3. 3.262.930 309 / / E: kkostiu iuk@ raftelis elis.com Charles les D Dia iamond – P: 21 3. 3.81 7.7677 / E: cdia iamond@ raftelis elis.com