Department of Utilities
Reference: Non-Potable Irrigation Water Rate Ordinance
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Assistant Director of Utilities
Date Prepared: September 22, 2022
PURPOSE
To provide City Council with updates and recommendations regarding a proposed non-potable water rate reduction.
STRATEGIC FOCUS AREAS
Financially Responsible
Supportive, Sustainable Infrastructure
BACKGROUND
In 2022, the Utilities Department hired Willdan, a utility consulting firm, to complete a non-potable water rate study. Willdan reviewed and analyzed data provided by City Staff to compile a financial model for non-potable irrigation water monthly, volume-based rates. Model inputs include the amount of existing non-potable waterlines, existing and future non-potable water demand, cost of replacement and maintenance of the non-potable water infrastructure and existing and future development. Large capital expenditures were not accounted for in the model as these were accounted for in the water rate model update also completed in 2022.
FINANCIAL IMPACT TO FUND
Since the non-potable water is not treated at the Water Treatment Plant, there will be a cost savings on water treatment chemicals and energy needed to treat water that is used for irrigation purposes. The amount of water used for irrigation purposes is large and will continue to increase as the City continues to see growth. The amount of water for outdoor or irrigation use can be seen by the substantial difference in winter water usage versus summer water usage in the City.
FINANCIAL IMPACT TO CUSTOMERS
The proposed reduction of the non-potable water rate will reduce the cost per thousand gallons of non-potable water to existing and future customers from the 2022 rate. Non-potable water is not currently available to all City of Brighton customers, but the City would like to expand access to as many customers as possible in the future.
STAFF RECOMMENDATION
Based on the findings of the non-potable water rate study, City Staff recommends that the non-potable irrigation water monthly, volume-based rate charged to customers be reduced from $3.22/1,000 gallons to $2.61/1,000 gallons. City Staff recommends that this reduced rate be implemented on January 1, 2023.
OPTIONS FOR COUNCIL CONSIDERATION
Ø Approve the proposed ordinance for the non-potable water rate
Ø Reject the proposed ordinance for the non-potable water rate
ATTACHMENTS:
⮚ Ordinance
⮚ Non-Potable Rate Study Memorandum
⮚ PowerPoint