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HomeMy WebLinkAbout1973-01-11; City Council; 1006; Water Rates - H.U.D. Housinglo -/V'-K THE CITY OF CARLSBAD,CALIF' ORNIA Agenda Bill No.Date: Januar 11, 1973 Referred To: Subject: Water Rates - H.U.D. Housing Submitted By: City Manager Statement _of the Matter The City Council has received requests from two lessors of H.U.D. housing units requesting relief from the new water rates. These requests are based on the apparent inability of the Housing Authority to raise rental payments for Section 23 housing and the owners' conten- tion that with the new rates they will not maintain a "reasonable" profit margin. Exhibit Memo from Finance Director, dated January 11, 1973, Staff Recommendations No. " Date: January 11, 1973 City Manager's Recommendation There are three possible solutions, as follows: 1) Amend definition of "Institutional Consumer" to provide lower water rates for H.U.D. housing; 2) Supplement Housing Authority administrative costs with City funds, thereby making additional funds . . available for rental payments; 3) Take no action and let H.U.D. housing unit owners absorb additional water costs. Our recommendation is that amending the water rates for H.U.D. housing"not be considered and that no' further action be taken at this time. • ' Many private apartment house owners have leases or other circum- stances that.prevent them from raising rents to cover higher water bills but lack the security Mr. Appleby and Mr. Houston have with their H.U.D. leases. Before considering any increased rental payments, one year documentary evidence should be supplied by the lessors to the Housing Authority to document their loss-profit situation. Relief should then be sought from.H.U.D. or alternative (2), above, considered. A.S to a possible rate differential, the- H.U.D. units clearly lack similarity to institutional or motel consumers and are simply typical apartment units that are in this case leased by the Housing Authority. Council Action 1-16-73 The staff was directed and instructed to study the multiple unit water rates and present recommendations to the .Council within the next 30 days. '."".' Cmn. Chase requested that the HUD people, as well as others who have written letters of protest, be informed of the Council's actionthisdate. -2- MEMORANDUM TO: JACK B. ARNOLD, CITY MANAGER FROM: THELMA SOWELL, FINANCE DIRECTOR DATE: JANUARY 11, 1973 SUBJECT: INSTITUTIONAL CONSUMER BILLING THE ACTUAL RATE CHARGED THE ARMY-NAVY ACADEMY AND THE LUTHERAN RETIREMENT HOME IS AS FOLLOWS: ARMY-NAVY ACADEMY: NO. OF METERS 8 1 1 1 1 12 METER SIZE 5/8" IV 3/4" 2" 3" 3 1 1 7 R/ 0. 8. 4. 3. 9. 5. S 8 0 7 0 2 7 0 0 0 0 5 5 NO. OF UNITS 3 9 12 TAP CHARGES 7 30 38 .7 .8 .5 0 0 0 ONE 5/8" METER SERVES 3 UNITS AND THE 3" METER SERVES 9 EQUIVALENT DWELLING UNITS. THE REST OF THE METERS ARE USED FOR GARDENING OR SERVICE INDIVIDUAL DWELLING UNITS. TOTAL READY-TO-SERVE COSTS ARE $114.25. WATER IS CHARGED AT 38$ PER UNIT. LUTHERAN RETIREMENT HOME: NO. OF METERS METER SIZE R/S NO. OF UNITS TAP CHARGES 57.75 1 1 1 3 5/8" IV 2" 3. 8. 13. 24. 85 00 00 85 15 15 57.75 THE IV METER SERVES THE RETIREMENT HOME AND INCLUDES TAP CHARGES FOR 15 EQUIVALENT DWELLING UNITS. THE 5/8" .AND 2" METERS ARE USED ON THE GROUNDS. TOTAL READY-TO-SERVE COSTS ARE $82.60. WATER IS CHARGED AT 38$ PER UNIT. TS/LW