COUNCIL AGENDA PACKET - Laserfiche WebLink

Page 6 of 8 In year 1, for low and average water users, the proposed water bi-monthly bills under both scenarios are lower when compared to other Tri-Valley water suppliers (Livermore and DSRSD). For high water users, the proposed water bi-monthly bills under the recommended scenario are mid-range to other Tri-Valley cities and for the alternative scenario they are higher. Recycled Water The City purchases and delivers recycled water to customers in limited parts of its service area. The costs and revenue requirements of the recycled water program are calculated independently of the potable water system and paid for by recycled water customers. The recycled water rate structure includes both a City fixed charge and a variable charge that is for both recycled water supply purchases and distribution to customers. Refer to the attached technical memorandum for proposed recycled water charge, which include an increase in the bi-monthly fixed charge over four years and an increase in the variable charge of approximately 9 percent in year 1, 15 percent in year 2, and 8 percent in years 3 and 4. City Discount and Subsidiary Program The City currently offers a 20 percent discount on water and sewer rates for single-family residents who qualify as a “senior” (age 65 or older) and a 30 percent discount for residents who qualify as a low-income family (those who qualify for PG&E, PacBell, or cable television discounts through either the California Department of Economic Opportunity or the Social Security Administration). Residents cannot apply for both discounts. The City also currently limits both programs to a discount only if the water customer’s bi-monthly water consumption is less than or equal to 30 CCF maximum usage. These discount programs are funded through the City’s General Fund and are not, and are not permitted to be, funded by rates. The senior discount program currently has approximately 3,200 enrolled customers and costs the General Fund approximately $300,000 per year. The low-income program currently has approximately 225 enrolled customers and costs the General Fund approximately $36,000 per year. Staff recommends maintaining the low-income discount program with maximum bi-monthly water consumption of less than 30 CCF. However, staff recommends discontinuing the senior discount program as seniors can still qualify as a low-income family if they show proof of participation in existing State or Federal Programs such as Supplemental Security Income (SSI), Medi-Cal, CalFresh, PG&E CARE or FERA Program, or low-income property tax exemptions through the County Assessor’s Office. These are third-party verified programs that require minimal resources from the City. Pleasanton Water Advisory Group Review Page 208 of 249