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HomeMy WebLinkAbout1972-08-15; City Council; 765-1; Changes to sewer service rates• r t 9 ' �T 1i E C I T Y O F C A R L S Q A D C A L -I F 0 R N I A Supplement No. 1 to Agenda gill No. 765 Date: August 15, 1972 Referred To: Subject: Submitted By: Changes to Sewer Service Rates Public Works Director Statement of the Matter The'Council requested that the Staff have the County reanalyze the Industrial sewer service charges and to report back on their findings. "The results are contained in the County's letter dated July llth (Exhibit 3). They recommend that the rate for Burroughs & Culligan be increased to 181` per 100 cubic feet of water used. They further recommend that this race "be extended to all indGstries in the City". General information regarding Clean Water Grants is /included in Exhibit (6) . A review of the charges by other members of the Encina Joint Sewerage Agency shows Vista and Buena Sanitation Districts currently charge on the basis of flow recommended by the County. San Marcos County Water District charges 20� per 100 cubic feet. They all recover industry's share of capital and operat- ing expenses from -industrial sewer service charges. The City of Oceanside rate is 4.0 /100 cubic feet. This has not yet been modified in accordance with State regulations. industry's annual expense in Carlsbad is $31,600. (See Exhibit (5)). Burroughs share is 96% or $30,000±, plus costs of monitoring their industrial waste which could run around'$2,000. Estimated revenue from Burroughs @a 1WlQ0 cubic feet using their anticipated water usage,is $32,200. The current rate for the City og Carlsbad is W100 cubic feet. ' Discussions have been held with both Burroughs & Culligan, regarding the rer quired increase which must be imposed. Culligan is planning to ultimately recycle waste water and is not strongly opposed to the recommended -increase. • Burroughs on the -other hand, requests that any increase be spread over 'a number of years. They- have expressed agreement with an increase to 12� per 100 cubic feet. This would generate approximately $23,000 in revenue, leaving a deficit in excess of $7,000. 4 Y� " \ I rA•. • .• Supplement No. 1 to AB No. 765 Dater August 15, 1972 Some action must be taken to avoid loss of grant funds. The following table capsulizes the pros and cons of the alternatives available: .Alternate Pro C.on a) Leave rate structure Least affect on 1. Inequitable distribu- as is industrial users tion of expenses among users 2. Loss of Grant funds b) .Raise rates for major 1. Allocates expenses 1. Possible temporary re - Industrial users to in relation with berie- duction in attraction to lWiO0 cubic feet. fits received industry. 2. Puts major industry on same basis 'as resi- dential use 3. Qualifies for Grant Funds c)Raise rates for major 1. Possibly qualifies .1. Leaves portion of in - industrial users to for Grant Funds dustrial expense with non= 12¢)100 .cubic feet. industrial user 2_ Spreads ultimate increase to,industry over several years d)-Raise rates for all 1. Puts all industrial ,1. See (b) industry as in (b) and residential ,use on same basis 2.. Complete analysis of sewer usage for individual 2. Qualifies for Grant industries not complete Funds It is the feeling of your staff that alternate (b) is the most ecjuitable way -, to- proceed considering both residents and, industry » A review- of all,- rates is being made and a•recommendation regarding all residential and industrial rates. will be submitted for C your consideration in the fall. -Exhibit Agenda Bill 765 with, Exhibits (1)-(2) (3) County letter•dated-July 11, 1972 recommending rates for industry (4) County -letter -dated March 17,' 1972 (5) Capital coost and operating cost allocation -Carlsbad portion of EWPCF "(5) Synopsis- revenue• program guidelines Staff Recommendations " 1. Adopt ordinance 7040 establishing method'of promolgating rates. 2. Adopt Resolution 2025 setting sewer service charges. (Specify alternate ._desired), ' `f City Manager'-s Recommendations I.i'ther , al tern Iate ".b" or "c" is acceptable. As a poss-i bl a compromise, this office. would suggest a' rate of 12-�/100 cubic feet be established for the° remainder of this, fiscal year and a rate of 18�/100 cubic feet be established as of July 1, 1973. -2" s .r. T H E C I T Y O F Agenda Bill No. �5 — Referred To: C A R L S B A D, C A L I FO R N I A Date: June 7, 1972 Subject: - Submitted By: A rec-ommended change to commercial sewer •se -,se -ice rates and an accompanying concurrent change to the Method Public Works Dir. of promulgating all sewer service rates. - Statement of the Matter 1. Current commercial sewer service rates, for industries whose primaey commodity is water, do not generate revenues which reflect their relative use of the Encina Water Pollution Control Facility. An increase from 60100 cu. ft. of water used to 18a/100 cu. ft. is Necessary to derive sufficient income to support industry allocated expenses. 2. The rate changes recommended result from operating and capital costs increases related tb Phase If expansion of the Encina Facility. This expansion, part of a five-year plan, is partially funded by an 80% grant from the State Water Resources Control Board under a Clean Water Projects program. For the City of Carlsbad to continue to qualify for the 80% grant, two conditions must be met: a) Each user should pay in accordance with demand imposed -on system, -b)' Industrial waste dischargers should contribute revenues to pay their share of expenses, allocated on a relative use basis. The recommended increase fulfills these requirements. 3-. Sewer service rates will require frequent review and updating as the costs of operation and facility expansion continue to rise. A change in method of promulgating these rates is recommended, At present, rates are stated in the Ca r'l sbad Mur.'i c i pa 1 Code, Section 13.12.020. To facilitate Council action on rate changes, it is recommended rates be promulgated by resolution hereafter. Exhibit 1. Ordinance No. to amend Section 13.12.020, Carlsbad Municipal Code. 2. Resolution No.lfvto promulgate Sewer Service Charges. Staff Recommendations 1. Adopt Ordinance No. 2. Adopt Resolution No. c.'e21"d �0--- Getting sewer service charges. 4�( r � r � AB'•110•. Date: City Manager's Recommendation .Concur with staff recommendation. Ordinarily this office Mould suggest a study group to revie►t such a change. However, if -vie are to continue to qualify for 80% dlean water grants, we must revise the industrial charge periodically to keep it on an actual cost basis. Therefore, there is Kittle that a, study group could do to explore alternatives or recom=. mend•changes. Those councilmen who attended the; J.A.C. meeting will recall this matter has been under discussion for several nionth,s. a CoUnci t'Action 6-7-72 The matter was deferred to the June 20, 1972 meeting and the City Engineer was i,nstruct'ed to notify all businesses where water is one of the primary commodities prior to June 20. 6-•20-72 The matter was again deferred to allow Councilmen an opportunity . • to review mbdi,fications in proposed resolution and additional publicity on rate changes. ;7-5-7Z By motion of the Council it was agreed that Res. #2025 not'be adopted at this time and that the City Engineer present an. alternate method for presenting charges to those users that City is trying to charge properly in the resolution,. • It was also agreed that•the alternative,study be presented within a 30 day period. •• 8. 5-72 Ordinance"#7040 given first reading by titiO aly. - Resolution. #2025 setting charges was adopted. • -2- 9-5-72 Ordinance #7040 was given a second reading and .adopted. " I A' 2 3� 4 5 6 T ,8 9 10 11 12 13 14 15 16- 17 18 19-, 20 ' 21 22 ' 23 24 25 26 27 28 29 30 31 32 AN ORDINANCE OF THE CITY OF CARLSBAD AMEND- ING ORDINANCE NO. 7039, SECTION 13.12.020; ORDINANCE NO. 7029, SECTION 2, AND CARLSBAD MUNICIPAL CODE TITLE 13, CHAPTER 13.12, SECTION 13.12.020 RATES ENUMERATED. The City Council'of the City of Carlsbad does hereby amend Section 13.12.020 of the Carlsbad Municipal Code to read as follo%� SECTION 1. "13.12.020. All persons whose premises in the city are served .by a connection with the city sewer system whereby sewage or other waste material is disposed of through such systems shall pay a sever service charge as shall 'be established by resolution of the City Council from time to time." SECTION 2. Effective Date. This ordinance shall take effect and be in force on the thirty-first day from and after its final. passage. SECTION 3. Publication. The City Clerk of the City of Carlsbad is hereby.dire&ted to cause this ordinance to be -published once in the Carlsbad Journal, a newspaper published and of general circulation in said City of Carlsbad. FIRST READ at a regular meeting of the City Council of the City of Carlsbad held on the 15th day of August, 1972, and finally PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the 5th day of September, 1972, by the following vote, to wit: AYES: Cmn. Mc'Comas, Lewis, Chase and Frazee. NOES: None. ABSENT: Cmn. Dunne. ATTEST: MARGARET E. ADAMS, City Clerk (SEAL) GLENN E. McCOMAS, Vice Mayor ' I I 1 RESOLUTION NO. 2025 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, SETTING SEWER SERVICE 3 CHARGES., -_ 4I 5 The City Council of the City of Carlsbad does resolve as 6 follows: 7 1, This resolution sets sewer service charges for -all persons 8 whose premises in the City are served by a connection with the City 9 sewer system whereby sewage or other wasVe material is disposed of 10, through such systems, shall pay a sewer service charge as follows: 11 Classification Monthly Charge 12 (1 ) Residential': 13 (A) For each single family dwelling $2.00 (B) For each unit of a duplex, flat,, 14 apartment, court, multiple dwell- ing, mobile home complex, or 15 trailer court $2.00 16 (2) Commercial & Industrial: 17 (A) For each uni-t of a motel, hotel rooming, lodging or boarding 18 house, ten units or less .80 19 Each additional unit over ten .60 (B) Mortuaries $10.00 (C) Laundramats, self-service laundries, 20 car washes, wash racks and laundries, shall be charged the sum of six cents 21 ($0.06) per each one hundred cubic feet of all water used. 22- (D) Other enterprises where water is the primary commodity to carry on 23 said business and sai-d water is dis- charged -into the sanitary sewer system 24 shall be charged the sum of twelve cents ($0.12) per each one hundred 25 cubic feet of all water used. (E) For each unit of an office of commer- 26 cial building or any establishment having facilities for trailers, 27 campers, or boats, and all commercial establishments not listed above and 28 not separately classified by future action of the City Council. $2.00 29 30 31 32 -1- II 21', 3� 5 6 7 8 9 10 11 12 13 14 15 s i 16 i '17 f 18 19 20 21 ! 22 23 24 25 '26 27 28 29 30 31 32 PASSED, APPROVED AND ADOPTED at an adjourned regular meeting of the City Council of the City of Carlsbad, California, held on the 15th day of August, 1972 by the following vote, to wit: KrE�: Cmn. -Dunne, McComas, Lewis, Chase and Frazee NOES: None ABSENT: None ATTEST: Virg i is M. Smit , Depu -Ci ty Clerk (SEAL) —2— r D D . DU NE , Mayor • GC�UNT OF S1V DIJO PUBLIC WORKS AGENCY Department of Sanitanoil & Flood Goutrol C.J.HOUSOH Director County operations Center, 5555 Overland Avenue, San Diego, California,92123 ... telephone: 218-5200 11 July 1972 City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Attention: Mr. Hunter T. Cook, City Engineer SUBJECT: Server Service Charges As stated in our letter of 13 March, in order to meet the requirements of the State Water Resources Control Board for grant recipients, it is neces- sary for industry to pay its share of the capital and operating expenses related to -sewer service. Consequently, the sewer service charges for in- dustries operating in the City of Carlsbad must be increased. According to the State guidelines, no credit can be given to industry for economies of scale. Computations of the industrial sewer charges should therefore be on the following basis: Residential charge is $2 a month. Based on a flow of 280 gallons a day for each equivalent dwelling unit (EDU), the residential cost is 180 per 100,cubic feet. The present charge to Burroughs and Culligan is 6G per 100 cubic feet. It is therefore recommended that the charge to these two industries be increased to 184 per 100 cubic feet for 1972-73. The foregoing analysis will satisfy the requirements of the State Water Resources.Control Board. In the future, it,is recommended that Carlsbad establish sewer charges on the basis of equivalent dwelling units as pre- viously outlined in our letter of 13 March. The charge per dwelling unit should be based on the revenue requirements, taking into consideration' collection, t.ansportatioti; treatment and disposal costs. A careful analytical study should be made of the basis for assessing industrial sewer charges .0 .e., flow and strength). There are several other methods of de- termining sewer charges, but they do not meet the State Board requirements. City of Carlsbad 'Page 2 L) July 1972 As you know, the final payment of the grant for the Encina Phase I Enlargement will not be paid until an equitable method of applying pg 1 in " sewer service charges to industry is adopted'by Carlsbad, aswel")as San Marcos and Vista. In order to be equitable, the proposed increase in flow charges to the two major industries in Carlsbad from 6� to 180 per 100 cubic feet should a1 0 extended to all industries in the City. 2lip' HOUSON l; 3 F:AVM:mp I l � , t , t r � t c f i I r t 1� !f -COUNTY OF"14N D.IEGO PUBLIC WORKS AGENCY `j ��ii«�ii�vii uvcr evil t; .�1. De arti�rat ur � C. J. HOUSON ,Director 13 March 1972 County Operations Center, 5555 Overland -Avenue, San Diego, California 92123 ..... Telephone: 218.9200 City of Carl shad 1200 Elm Avenue Carlsbad, CA 92008 Attention: Hunter T., Cook, City Engineer SUBJECT: Sewer Service Charges Cr GI'[Ygrl �� ��P -► �m pt LSBAD Gnaln� 41e are recommending.to the Sanitation District Board of Directors that the attached sewer service charges be adopted by the various department -operated sanitation �distr.icts. It may also be feasible for you .to adopt a similar ordinance to meet the requirements of the State Water.Resources'Control- Board. As you are aware, we recently completed a Five -Year Revenue Program for 'the State Water Resources Control Board which is a,requivement for wastewater agencies recei vi ng,'80%, grants .for the construction of Clean Water Projects. Carlsbad, i s the recipient of such a grant since it participated in the en- largement ,of the Enci na Water Pollution Control Faci l,i ty. From the Five - Year Revenue Program it is evident that industry was not paying, its share of capital and operating expenses. Two of the main requirements, of the State guide 1_i nes are: 1.. Each user should pay in accordance with demands imposed,on the system. 2. Industrial waste dischargers should contribute revenue to pay'their share of expenses, allocated on a relative -use basis. (No credit should be given to industry for economies of scale.) To•meet the new state requi-cements and to receive grant monies, we will have to charge industries on the same basis as residences. For example, if an industry discharges twice the wastewater quantities of a residence, the in- dustry would then pay twice the sewer service charge of a residence: The industry would also pay for other than normal strength sewage because of extra demands imposed on the system. If the acceptable strength factor for residences is 300 mg/.l suspended solids and the industry's suspended solids is 600 mg/1, ,the industry would then pay, on this basis, t%,Ii ce the charge of a residence. Refer to item "h" rof the ordinance which states: "For industrial establishments and other businesses and establishments that have unusual characteristics insofar as sewage is concerned, the rate shaTI be established in each case by the Engineer subject to approval by the Board of Directors." vxN�B�r (C4) City of Carlsbad Page 2 13 March 1972 This is the section you wou-Id use to assess sewer service charges to industries that are not. covered in the other sections of the ordinance. If you vrould like to -be more specific in item "h" you could state the acceptable strength and wastewater flows from a typical residence. We allow a wastewater flow of .280 gallons per residence and a strength factor of 300 mg/l of suspended solids in'primary plants. In secondary plants we would also consider a,strength '7actor relating to biochemical oxygen demand. The Carlsbad ordinance regarding sewer service charges in -any event must be changed in the near." future and the attached ordinance is one feasible method. According,to.a representative of the State Water Resources 'Control Board, final':payment-of the Encina plant, Phase I grant will not be paid until a new a uitable method of applying sewer service charges to industry is adopted g,. Carlsbad, and -San Marcos. I:cef nclosure ■' J ■ .. �z F s s i • t Y i i f > Y �- i r: _ SEWER SERVICE CHARGES ESTABLISHMENT OF SEWER SERVICE CHARGE. There is hereby levied and assessed upon each premise within the District that discharges sewage lines of into the sewer or ,and upon each person occupying'such premises a service charge in the following owing, letting amounts; Per Year (aj For each dwelling unit or equivalent dwelling unit -;per unit . , ... , • . • , , $30.00 Equivalent t > t [sae 11 i'ng 'Units (b) Hotels, Hotels, auto courts --per •living unit without kitchen --per i i vi ng uni t -Wi th kitchen ... ,33 t . . . . . • •50 '(c) Churches =-per"e6ch unit of seating capacity -(a unit being 150 persons or any fraction thereof). ,. ,. • . . . L33 I i (d) Cafe or Restaurant i 4 --drive through and flake out (no seating) . , , , , , • • . • 2.67 --restaurants and coffee shops less'than bt.% seats per ,each unit of seating capacity -(a ,uni t being equal '7 to seats or fraction thereof) • L 00 --restaurant and coffee shop (more than 80seats) Rate shall be determined in, -accordance with paragraph "h" of this -section. (e) Automobile service stations --not more than,A gasoline pumps . . . . . . . . . . . . . . 2.00 --more than 4- gasoline, pumps. ; • . . . . 3.00 ` (f) Self-service laundries --per each automatic washer . . . . . . . . . . . • e .75 '# (g) Mobilehome park --per each trailer space• . . . ,, , . .75 , (h) For each store, office, business or small industrial establishment not listed above, , , , , , , , , , , , , 1.00 ✓ Provided, however, in the case of laundries'(other than self-service laundries), bottling works, industrial' establishments, and other businesses and establishments that have unusual characteristics insofar as sewage is concerned,, the rate shall be established in each case by the engineer subject to approval by the Board of Directors of the District. The rates so established shall be fixed in' consideration of the estimated 3 volume and type of sewage from each such business. Sevier Service Charges Page 2 (i) Schools --the rate shall be -$0.75 per pupil per year for each elementary school and $1.00 per pupil per year for each, junior high school or high school. The number of pupils shal'1 be based on the average daily attendance of pupi-is at the school during the preceding fi"scat year computed in i accordance with'the Education Code of the State of Cal fornia; provided, however, where the school has 'had no attendance during -the preceding fiscal year, the engineer sh'al1 estimate the averag'e,dally attendance for the fiscal year for which the fee is to be paid and -compute the•'fee based on such estimate,. s } a Revenue Program - Carlsbad •yam -t:1 o.p.p., .A ---0•o O O• •"1 •O O.O O O- «O r: -Nt G O I• O O O O -I O C 9 O C W �M N 01 Nf a:y M O htoo O I � K — •l M M p! Q — U 00 C co.O 000 C.1 G O 000 O 'Q N V! r Cl O tp .O•, N O M O O O O O 7 01 7 • • . • • • O1 N VI 5; C 1 A« 01 N 2 a D« Q 1 M •�-. 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O O C U cri B 21«V cl v« o I O rz-3 a %aC1.u.o u0 ne ualuu V O�O $ 0. rr, U ;' I ,aC• J O. .O1C T100101 M V¢ N y t h co Mai I 0h©ro tohtoO O f`1 M M M M O I 1~JU r., A a u �c_: 3 B: O N O rn .2 t: O y O O O to 0 0 to O O O O O 0 0 0 0 O 0 0 0 0 0 ( O O O�0 O O 0 0 O O O C J O I/ N q V NOr}G 1A N�AN h to Q C1 •'7 t� h i+. 7 V•O t0'!"+� NO) r q V U cl u _ v u c y I r0 p a ~ O C N N V. al 4 O't' • 4 V.N I.0 I U V. 4 7 V A I M A G O .• A C • a �i P o' MI11v.(+ C.! a, l��ol(:: p i� ��41F• it i; BROWN AND CALDWELL CONSULTING ENGINEERS 0 F-r• e�XNa t+�T C��J 9/23/7]. ,, . SYNOPSIS REMMUE PROGRAM GUIDELINES FOR WASTEWATER AGENCIES ; GRANTS FOR CLEAN WATER STATE WATER RESOURCES CONTROL BOARD After extensive hearing on the concept, the State Water Resources Control Board on July 15 adopted regulations which require that wastewater agencies (cities, sanitation districts, etc.) receiving 80/ grants for construction of Clean Water: projects implement a sound and equitable revenue program. Guidelines developed with the aid of experts outlining acceptable revenue program practices were subsequently adopted by the Board on h-gust 5, 1971. i The main thrust and purpose of the program is to achieve the y following goals: 6-Each user should pay in accordance with the i demands imposed on the system., j t ' 0 Industrial waste dischargers should contribute revenue equal to their share of expenses, allocated on a relative use basis. ti ©The revenue program should aim for local self- sufficiency and assure permanent benefits from the Clean Water Grant Program. Key principals contained in the guidelines are: r Q Revenues should meet expenses. O The functional value of the Wastawater system should not be allowed to deteriorate. *Cost allocations should be on the basis of i 1 relative use of the system both in terms of volume of sewage and strength of sewage. ? 4 01ndustry should pay its fair share of allocated, costs. i a Accounting system should' clearly delineate 6 operating expenses, capital expenses and utility ' platit depreciation and be broken down in + app::opri.ate detail (the Uniform System of Accounts for Waste Disposal Districts required i to be used by virtually all California special districts engaged in wastcwatcr or solid waste disposa). atu re -commanded for use by all viaste- water agencies) . 4 No credit should be given to industry for economies of scale nor should industrial costs be determined by incremental cost allocation. ® Wastewater agencies whose only source of revenue is ad valorem taxation are generally not equitably collecting revenue. ©Direct user charges applied to industrial users are generally necessary to achieve -equity. This is especially true for heavy wet industries (petroleum, metals, chemical, food, -paper, etc.) ®Establishment of a wastewater Capital Improvement Fund to facilitate continued investment in waste- water treatment facilities. Reporting procedures require applicants to .forecast and analyze revenue and expenses over a five-year period and submit a ,ummary statement for three of the five years for review. The statement *highlights three basic requirements: ® That total annual revenue equals or exceeds operating and capital expense. G That revenue for capital expenditures, excluding interest, equals or exceeds the annual ,depreciation of the total. capital plant. P.That industrial users pay according to their estimated proportional use of the facilities, Supporting material also required includes information on general system design and present flow characteristics; industrial waste- water loading characteristics; summarized by major group of Division D, Standard industrial Classification; basis of use and cost allocation; summary of proposed rates and charges to be adop.ea; estimate of revenues by class; and other special information that may..be requested by the State Board staff. • In summary, sound revenue programs are fundamental and essential to achieving and maintaining clean water. it would be sheer folly if California did not take maximum advantage of the opportunity made available by the massive infusion of grants now being made to implement concurrently sound and business -like revenue programs, the very foundation of a truly permanent clean water program. For questions, contact: John Olaf Nelson Assistant Chief, Divisiox, )f Water Quality Grants Manager State Water Resources Control. Board 1416 Ninth Street Sacramento, California 95814