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W A T E R E N E R G Y I L F F E RIVERSIDE PUBLIC UTILITIES 1A_AW._ -'W-. - . . W& Board Memorandum PUBLIC U T I L I T I F 5 BOARD OF PUBLIC UTILITIES DATE: MAY 13, 2019 ITEM NO: 9 SUBJECT: TRANSITIONAL WATER SERVICE AGREEMENT WITH OLIVEWOOD MEMORIAL PARK FOR PURPOSE OF PROVIDING A TEN-YEAR TRANSITION TO REVISED RATE SCHEDULE WA -10 RECYCLED WATER SERVICE THROUGH JUNE 30, 2028. ISSUE: Recommend that the City Council approve the Transitional Water Service Agreement with Olivewood Memorial Park to provide retail water service for a ten-year transition to the WA -10 Recycled Water Service rate schedule through June 30, 2028. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Transitional Water Service Agreement with Olivewood Memorial Park providing a ten-year transition to the revised rate Schedule WA -10 Recycled Water Service through June 30, 2028; and 2. Authorize the City Manager, or his designee, to execute the Transitional Water Service Agreement with Olivewood Memorial Park, including making minor, non -substantive changes, to sign all documents and instruments necessary to complete the transaction, and to execute amendments. BACKGROUND: Olivewood Memorial Park (Olivewood) was established by the City of Riverside's early founders in 1888. Prominent figures instrumental to the development of Riverside are interred here, including Samuel C. Evans and Matthew Gage. As a significant part of the City of Riverside's heritage, Olivewood has been receiving water service at the Schedule WA -7 rate, "Special Metered Service." Prior to the City's new rate plan implementation, water service classified under this rate class included historical cemeteries. On May 22, 2018, the City Council adopted a five-year water rate plan effective July 1, 2018. As part of that process, the City undertook a cost -of -service study and determined that the City was not adequately collecting all costs from customers under service Schedule WA -7. In response, the City created the Schedule WA -11 rate, "Landscape Irrigation Metered Service," which caused a significant increase in the projected water costs for customers transitioned from Schedule WA -7 to Schedule WA -11. Under the new rate plan, Olivewood is required to transition to Schedule WA -11 or to Schedule WA -6 rate, "Commercial and Industrial Metered Service," depending on applicability.