2010-10-26_PWETC_AgendaPacket - Laserfiche WebLink

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~, Memo To: Public Works, Environment, and Transportation Commission From: Chris Miller, Finance Director Date: October 15, 2010 Re: Water Use Impact Resulting from the Water Conservation-Based Rate Structure Background In January, 2009 the City instituted a new water conservation-based rate structure designed to encourage water conservation in conjunction with the goals and strategies outlined in the City's Imagine Roseville 2025 initiative, as well as a new State Law that required water service providers to encourage water conservation. The new conservation-based rates were designed primarily to target excessive water usage. It is not unusual to see a 4 or 5 person household use 20-30,000 gallons per quarter for general use such as personal hygiene, cooking, and cleaning (as evidenced by the household's wintertime usage). In recognition of this, the new rate structure was designed to encourage conservation without unduly penalizing households for basic water use. The new State Law did not mandate how each service provider should structure their rates, but it did offer examples that are commonly in use, such as using increasing block rates (tiered rate structure) and seasonal rates. The City's current rate structure employs both of these measures as shown in the following table. In analyzing customer usage behaviors prior to 2009, it was evident that Roseville residents were already consuming less water than residents in many other communities. This is most likely due to the fact that relatively few residential properties in Roseville have irrigation systems, which is in contrast to some 2nd and 3rd ring suburbs. It may also stem from having a relatively smaller population per household. Given that Roseville residents already had some forms of water conservation methods in place, it was projected that a new conservation-based rate structure was not likely to have a significant impact on the amount of residential water use.