1.1 Why BBRs? (Internal Evaluation)
– Meeting the agency mission
– Water supply scenario
– Water resource management
– Agency financial responsibility
– Customer fairness

1.2 Roadmap to BBRs
– Board education/direction
– Agency planning process

1.3 Setting Agency Goals
– Cost of service
– Customer fairness
– Water efficiency

1.4 Current (Historical) Agency Status
– Current rate structure
– Is the current rate structure working
– Determining fixed and variable costs
– Utilizing consultants
– Billing system abilities
– Wholesaler rates continue to rise
– Limits on supply are the new normal
– State legislation requires efficiency
– Agency subsidizes rates
– Need to plan for efficient growth

1.5 Internal Conclusion: Achieve Agency Goals with BBRs
– Revenue stability
– Customer Fairness
– Water Efficiency

2.1 Timeline for Implementation
– Billing system upgrade
– Proposition 218 notice
– BMP exemption
– Data collection
– Customer education

2.2 Customer Allocations
– Customer equity/fairness
– State guidelines
– Allocations: indoor, outdoor, agriculture,
commercial, institutional, special conditions,
and adjustments

2.3 Determining Tiers
– Tier widths, number, and names

2.4 Determining Tier Height
– Base cost of water (variable costs)
– Future cost of water (marginal cost)
– Incentives for efficient customer use

2.5 Modeling Projected Rate Structure (Testing/Validating Rate)
– Customer sampling
– Testing: fixed and variable, tier width and height, drought
factor (wet year), cost recovery, excess revenue

2.6 Final Rate Structure Design
– Recommended tiers and fixed and variable charges
– Customer classes: residential, multifamily, irrigation,
commercial, institutional
– Meeting Agency goals (revenue stability,
fairness, water efficiency)

3.1 Implementing the Rate Structure
– Implementation date; roll-out plan

3.2 Billing System / Customer Data
– Billing system data by group
– Customer data outreach / messaging

3.3 Customer “Allocation Adjustment” Program
– What, why, how, when

3.4 Customer “Credit” Program
– What, why, how, when

3.5 Establishing a Customer/Agency Baseline
(Optional)

3.6 Policy on Use of Excess (Penalty) Revenue

3.7 Water Bill Design

3.8 Customer Service Tools
– Water budget calculators
– Credit calculator
– Adjustment and Credit Programs
– Website

3.9 Efficiency Programs
– State / Regional Requirements
– Customer Expectations (rates)
– Funding: excess revenue and cost-share financing
– Targeting
– Residential, irrigation, and commercial customers

3.10 Public Education (Outreach)
– What, why, how, when

4.1 Rate Structure Maintenance
– Internal Training & Staffing: customer service,
resources/efficiency, other departments,
contingency staffing

4.2 Monitoring Reports
– Account use by group/tier
– Excess/penalty revenue
– Covering agency cost of service: fixed and variable
cost coverage
– Total water use (GPCD)
– Peak demand/infrastructure impact
– Regional/State reporting: wholesaler (e.g. MWD)
allocation, GPCD, BMP
– Customer efficiency: baselines,
per capita use,
by water budget,
by excess revenue, customer
satisfaction

4.3 Measuring Customer Satisfaction
– Measure against independent survey (Optional)
– Customer service surveys

4.4 Long-term Rate Structure Maintenance
– Customer feedback
– Drought options
– Legislative adjustments
– Agency promotion: retail customers, wholesale,
water industry