FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUE PROGRAM RATE STUDY
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District’s 2022 Wastewater Rates, Fees, and Charges Study completed by HDR Engineering, Inc.
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BACKGROUND
To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (OC San) engaged an engineering consulting firm, HDR Engineering, Inc., to provide an independent analysis of OC San’s cash flow modeling and a comprehensive cost of service study. The study demonstrates that OC San’s proposed fees are appropriate and reasonable and will support its projected capital and operating requirements.
RELEVANT STANDARDS
• Stable rates based on a validated cost structure which minimizes unforeseen rate increases
PROBLEM
OC San’s Board of Directors approved a five-year rate schedule which expires at the end of the current fiscal year.
PROPOSED SOLUTION
Develop a new proposed five-year rate schedule based on the 2022 rate study completed by HDR Engineering, Inc.
TIMING CONCERNS
Based on the 2022 rate study, staff will be developing a proposed five-year rate schedule, beginning in July 2023, for Administration and Board consideration in February 2023.
RAMIFICATIONS OF NOT TAKING ACTION
Sewer service fees will be insufficient to support capital and operating requirements.
PRIOR COMMITTEE/BOARD ACTIONS
December 2017 - Received and filed the OC San 2017 Wastewater Revenue Program Rate Study completed by Carollo Engineers.
ADDITIONAL INFORMATION
Based on the results of the rate study completed by HDR Engineering, Inc., OC San staff is in the process of recommending a five-year revenue program which includes an increase on average of 3.5 percent annually for the next five years.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Orange County Sanitation District Wastewater Rates, Fees, and Charges Study
• Presentation