06-12-2023 BPU RPT 10 - Laserfiche WebLink

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W A T"E'R I EHE -R G Y I L I'F E 5 RIVERSIDE PUBLIC UTILITIES Board Memorandum P U 8 L 1 C U T I L I TIE S BOARD OF PUBLIC UTILITIES DATE: JUNE 12, 2023 SUBJECT: WATER UTILITY FIVE-YEAR RATE PLAN PROPOSAL ISSUE: Consider a recommendation to the City Council proposing the establishment of a five-year rate plan for the water utility and direct staff to prepare all documents necessary for a public hearing to be held at City Council on September 5, 2023 upon approval of the City Council. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Conceptually approve the water utility five-year rate plan proposal; and 2. Direct the City Manager to prepare all documents necessary for public noticing of the rate proposal, to update proposed rate schedules to reflect changes due to the rate proposal, and to update any other documents necessary for the public hearing to be held before the City Council on September 5, 2023, with new rates effective October 1, 2023. BACKGROUND: The Riverside Public Utilities (RPU) water utility was established in 1913 and provides high quality and reliable service to over 66,000 service connections serving most of the City of Riverside and a few surrounding areas. 100% of the water utility's potable drinking water has been supplied from local groundwater basins in San Bernardino and Riverside counties since 2009. The water utility maintains and operates 50 domestic wells, 60 pressure stations, 6 water treatment facilities, 16 reservoirs, 34 miles of supply pipeline, 98 miles of transmission pipeline, and 826 miles of distribution pipeline. RPU water rates are believed to be the lowest in California. Maintaining low rates is important to our customers and helps the City of Riverside maintain a competitive advantage when compared to other utilities like Pasadena (93% higher), Corona (76% higher) and Anaheim (59% higher), as depicted in Table 1 below.