11.A.
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CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
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Follow up discussion from the March 25, 2024 City Council - Water Commission Joint Meeting |
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STAFF RECOMMENDED ACTION: | |||||
Staff is requesting City Council direction on two topics:
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Executive Summary: | |||||
At the request of City Council, Stantec revised Water Rate Option 3 from the March 25, 2024 presentation. The "ratios" between Single-Family Customer Class tiers were adjusted slightly to place more of the cost-of-service due to peaking factors on Tier 3. Adjusting the ratio of cost-of-service on Tier 3 back to 2.00 increased the volume rate for Tier 3 by about $1.00/1,000 gallons and reduced Tier 1 by about $0.10/1,000 gallons. This adjustment still incentivizes indoor and outdoor water conservation in the single-family customer class. The adjustment also supports City Council's objective of increasing the intra-class proportionality of essential water use for our 3, 4, and 5-person households. Council also requested at the March 25, 2024 meeting to have a larger discussion of Flagstaff's reclaimed water rate policy. Staff provided several attachments to this agenda demonstrating the complexity with pricing and "best-use" approaches industry-wide, within Arizona, and among our citizens. Staff are recommending City Council maintain reclaimed water rates at the current policy (a percentage of potable) and host a broader discussion on reclaimed water with the Water Commission and Council outside the rate study. |
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Information: | |||||
See attachments. | |||||
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Attachments: | Water Reuse Cost Allocations and Pricing Survey | ||
Flagstaff Reclaimed Water Pricing Policy and Economic Value of Water Memo | |||
Flagstaff Reclaimed Water Study | |||
Presentation |