Title
Endorsement of the Sewer SHAREs Methodology Update
Body
Agenda of: November 25, 2020
Item No.: 2020-410
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: November 19, 2020
RE: Endorsement of the Sewer SHAREs Methodology Update
MOTION
Upon recommendation of Suzanne Coffey, Chief Planning Officer, The Board of Directors (Board) of the Great Lakes Water Authority (GLWA) endorses the Sewer SHAREs Methodology Update and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The original SHAREs, or percent allocations of revenue requirements to each wastewater member partner, were established via a Rate Simplification initiative that resulted in the FY 2015 wholesale sewer charges. These SHAREs were determined based on flow volume data from FY 2008 through 2012 and an element known as "strength-of-flow". In 2016, GLWA engaged the Member Partners in a second initiative that continued to examine a variety of parameters in the SHARE methodology, including a focus on the strength-of-flow element. That initiative resulted in a change to basic assumptions relative to strength-of-flow for the FY 2018 charges. With much discussion around the strength-of-flow assumptions, a commitment was made to undertake a third initiative to further consider the elements of the methodology. The work completed to accomplish the third initiative is briefly summarized below.
* We hosted a Symposium on Wastewater Charges in 2018 where GLWA brought in large utilities from across the nation for a two-day event for an information exchange on wastewater charges. The main conclusion was that GLWA's charges were far more complex than our peers.
* We convened a member partner Sewer SHAREs Workgroup to collaboratively consider a change to the charge methodology. Most notably this group wrestled w...
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