Investment in West Linn’s Water System

June 28, 2010

Water System Investment 2

Ripped From the Headlines

Water System Investment 3

Repairs Completed Last Week

Water System Investment 4

Broadway Fix Was Time Consuming and Costly

Water System Investment 5

Aging & Unsafe System

Water System Investment 6

Community Feedback

Utility Advisory Board hosted three Town Halls

City Council held three Public Hearings

Online Utility Rate Calculator

Web and email notices

Newsletter Updates

Newspaper

Water System Investment 7

West Linn Water Rates Lowest in Region

Comparison of Neighboring Cities' Average Monthly Water Bills Updated for July 1, 2009 Increases

$72.69 $32.91 $32.16 $31.78 $30.23 $29.80 $28.70 $23.38 $21.11 $19.42 $16.21$-

$5

$10

$15

$20

$25

$30

$35

$40

Wi lsonvi l le Oregon Ci ty Gresham Portland Tigard Tualatin Beaverton LakeOswego

Milwaukie Hi l l sboro West Linn

Reminder: We share ownership of SFWB with Oregon City, so the wholesale cost of water is the same… yet Oregon City’s current rates are double West Linn’s.

Water System Investment 8

Current Rate Structure and Conservation Pricing Options

Current West Linn Pricing

– Base charge per meter size of $15.27

– First 7 units of water used is included in base charge

– Additional consumption charged at a one-tier rate of $1.75 per unit

– 1 unit = One hundred cubic feet (ccf) = 748 gallons

“Conservation Pricing” Options

– Increase to all water rates to fund Master Plan project costs

– Financial Incentive to Conserve at all Usage Levels

Water System Investment 9

Impact on Various Customer Groups

3 Units of Water Used – 18% of users

– Breakeven falls at 3 units under the Three Tier method

– Breakeven falls at 2.3 units under the One Tier method

7 Units of Water Used – 52% of users (City’s median)

30 Units and Over – 7% of users or 650 Accounts

– Many public accounts (both City and School District)

Water System Investment 10

Feedback from the School District

Chris, Thanks for the update on water rates. This district believes the one tier model is more equitable for all users. My thoughts are that if one took the total acreage and square footage of school district facilities and compared it to a comparable total of housing square footage and acreage, the district’s use would actually be less. So, it seems an unreasonable penalty to charge a premium because of overall size. Additionally, school fields provide a significant public service for youth recreation and the three tier model places an additional burden on the maintenance and care of those facilities. Roger L. Woehl “This district believes the

one tier model is more equitable…”

Water System Investment 11

Ask the Voters?

RESOLUTION 2010-27WEST LINN, OREGON

A RESOLUTION OF THE WEST LINN CITY COUNCIL CALLING AN ELECTION TO SUBMITTO THE VOTERS A MEASURE TO UPGRADE WATER SYSTEM, INCREASE SAFETY OFDRINKING WATER, AND PROMOTE CONSERVATION BY BASING WATER PRICING ONWATER CONSUMPTION

Water System Investment 12

Three Tier or One Tier?

ATTACHMENT A

January 1, 2011 January 1, 2012 January 1, 2013Base water rate 15.27 10.06 10.56 11.09

1 to 7 units Included in base 1.56 1.85 2.217 to 10 units 1.75 1.56 1.85 2.21

11 to 30 units 1.75 1.99 2.36 2.81More than 30 units 1.75 3.21 3.81 4.55

January 1, 2011 January 1, 2012 January 1, 2013Base water rate 15.27 10.06 10.56 11.09

1 to 7 units Included in base 1.84 2.29 2.82More than 7 units 1.75 1.84 2.29 2.82

Proposed water rate structure

Proposed water rate structure

Current rate structure

Current rate structure

Water System Investment 13

Discussion