11-26-2018 BPU RPT 13 - Laserfiche WebLink

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W A F E R f N E R G Y I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIF5 BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 26, 2018 ITEM NO: 13 SUBJECT: TRANSITIONAL WATER SERVICE AGREEMENT BETWEEN VAN BUREN GOLF, LLC AND THE CITY OF RIVERSIDE 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 between Van Buren Golf, LLC and the City of Riverside to provide retail recycled water service for a ten-year transition, in order to reduce the cost impacts in transitioning to the revised rate Schedule WA -10 Recycled Water Service through June 30, 2028. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Transitional Water Service Agreement with Van Buren Golf, LLC, 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 Van Buren Golf, LLC, including making minor, non -substantive changes, to sign all documents and instruments necessary to complete the transaction, and to execute amendments. BACKGROUND: Van Buren Golf, LLC (Van Buren Golf) has received recycled water from the City of Riverside's Regional Water Quality Control Plant (RWQCP) since 1997. Van Buren Golf partnered with the City of Riverside (City) to implement the use of recycled water and assisted in the early stages of development of the recycled water infrastructure and distribution system. Van Buren Golf received recycled water service under the Riverside Public Utilities (RPU) Schedule WA -10 — Recycled Water Service (Schedule WA -10). On May 22, 2018, the Riverside City Council adopted a five-year water rate plan for RPU effective July 1, 2018. As part of the rate proposal process, RPU undertook a cost -of -service study and determined that rates were not adequately collecting all costs for service under the Schedule WA -10. In response to the cost -of -service study, RPU revised the Schedule WA -10 rate, which caused a significant increase in the projected charges for recycled water service for customers currently served by the Schedule WA -10. Under the approved water rate plan, Van Buren Golf is required to transition to the revised Schedule WA - 10 rate.