Laserfiche WebLink
2019 Water, Recycled Water, and Sewer Rate Study <br />2. Financial Plan <br />Table 2-1: Cost Escalation Factors for Water Analysis <br />Salaries <br />0% <br />2.5% <br />2.5% <br />2.5% <br />2.5% <br />2.5% <br />2.5% <br />2.5% <br />2.5% <br />2.5% <br />Benefits <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />4.0% <br />Pension <br />13.7% <br />13.7% <br />13.7% <br />13.7% <br />2.2% <br />2.2% <br />2.2% <br />2.2% <br />2.2% <br />2.2% <br />Fuel 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% <br />Electricity 0% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% <br />Consumer 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% <br />Price Index <br />MWD Water <br />Purchases' <br />-0.4% <br />4.7% <br />4.7% <br />4.1% <br />4.1% <br />4.1% <br />4.1% <br />4.1% <br />4.1% <br />4.1% <br />OCWD <br />Pumping <br />10.2% <br />8.00% <br />5.4% <br />8.6% <br />7.3% <br />7.3% <br />7.3% <br />7.3% <br />7.3% <br />7.3% <br />Charges' <br />Green Acres <br />Recycled Water <br />3.7% <br />0.0% <br />3.6% <br />0.0% <br />3.5% <br />0.0% <br />0.0% <br />0.0% <br />0.0% <br />0.0% <br />Purchases <br />Capital <br />0% <br />0% <br />3.0% <br />3.0% <br />3.0% <br />3.0% <br />3.0% <br />3.0% <br />3.0% <br />3.0% <br />Imorovement <br />The decrease in MWD Water Purchase costs in FY 2018/19 is due to an anticipated decrease in water <br />purchase from MWD in that year. The decrease in MWD water is offset by an increase in OCWD <br />Pumped water. <br />2.2.7 Capital Improvement Plan <br />Like many utilities around the state and country, the City's water and sewer utilities are currently facing <br />challenges of aging infrastructure. In 2016 and 2017, the City completed updated Master Plans for the <br />Sewer and Water utilities respectively. Each Master Plan provided 30-year Capital Improvement Plans <br />(CIP) for the utilities which laid out a plan for re -investing in each utilities' aging infrastructure. As part of <br />this Study, the project team and City staff have evaluated multiple capital spending scenarios and <br />identified the CIP that allows the Water and Sewer Enterprises to maintain its infrastructure in good <br />working order, while limiting the impacts to rate payers. Below we discuss the recommended capital <br />spending strategy over the planning period. <br />Water Enterprise <br />The City's Water enterprise serves all of Santa Ana's residents and businesses over its 27.2 square mile <br />service area. The City's existing infrastructure includes 21 ground water wells, 7 import water <br />connections, 7 pump stations, 10 reservoirs, and -480 miles of transmission and distribution mains. The <br />City's infrastructure is generally in good working condition, however, about 20% of the City's distribution <br />City of Santa Ana Stantec 111 <br />