191537

This legislation changes how BES charges rates, fees, and system development charges.

Staff collected feedback from a wide range of community stakeholders about proposed updates to the Bureau’s rate methodology. Staff conducted in-depth technical discussions, community presentations, and one-on-one office hours sessions with impacted community members. In addition, staff conducted outreach to special customer classes that are projected to see the largest impacts from the proposed changes. These discussions provided an opportunity for community members and ratepayers to learn how BES sets rates and provide feedback on a range of important questions to help BES update its rate methodology.

Outreach focused on three areas:

• Technical discussion sessions were held that allowed for in-depth conversations with stakeholders that had specific interests or expertise in BES rates. In addition, BES Staff presented on proposed changes to System Development Charges (SDCs) and other connection charges to the Development Review Advisory Committee (DRAC).
• BES staff conducted a series of Community Presentations to educate community members about how BES rate setting works and to provide a forum for people who are not necessarily technical experts to engage with the proposed changes and offer their recommendations and insights.
• The community presentation effort was supplemented by “office hours” sessions where community members and customers could schedule time to discuss their individual questions and recommendations.
• Outreach to highly impacted ratepayers was conducted for customers inside the drainage districts, as well as customers with overwater structures. It is anticipated that these customers will see the largest impacts from the proposed changes so BES staff held focused outreach events for these two groups to ensure that staff received their feedback and insights.

In general, participants in the public outreach process expressed general (if reserved) support for the proposed changes or did not directly oppose them.

• Responses were generally favorable towards the proposed changes to the Single Dwelling Unit rate methodology.
• Responses to changes in the rate methodology for commercial properties were less clear due to the complexity of changes to the rate structure and varied impacts by property. In general, participants did not express opposition to the potential changes. However, it wouldn’t be accurate to state that there was overall support either.
• Participants who were interested in Systems Development Charges (SDCs) were generally supportive of the proposed changes.
• Customers with overwater structures – particularly customers living in floating homes and yacht clubs – are unhappy about the staff recommendations. Many of these ratepayers expressed strong opposition to the changes and do not feel that docks, boathouses, or floating homes should be charged. BES staff engaged directly with this group repeatedly throughout the engagement process.

In response to the engagement effort, BES updated rate study recommendations as follows:

• Pursue pathways for easier access to CRR discounts for overwater structures.
• Update compliance methods for CRR program so that properties can resolve minor issues without being excluded from the discount.
• Phase in changes over time.
• Sunset line and branch charges and nonconforming conversion charges.

The changes proposed impact all community members. In general, the recommended changes produce the following impacts on customers.

Rate Impacts

• Cost recovery shifts:
  • From wastewater to stormwater.
  • From residential to commercial customers.
  • In stormwater, from single family and commercial customers to multifamily customers.
• Customers who will generally see lower bills include customers with high extra strength usage (restaurants, breweries, certain industrial developments), higher sewer flow, and single family customers in Tier 1.
• Customers who will generally see higher bills include commercial customers with higher impervious area, dense multifamily customers, customers within the drainage district, and single family customers in Tier 3 and Tier 4.

Clean River Rewards Impacts

• Increase participation in the program.
• Increase connection between CRR and stormwater regulations.

SDC/Fee Impacts

• Reduce SDC for smaller housing and multifamily housing units.
• Increase SDC for large commercial/industrial developments with high impervious area.
• Increase SDC for large single family housing.
• Increase SDC for customers with high-strength sewer flow.

For more information on public outreach, please refer to the Rate Study Engagement Summary memo.