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HomeMy WebLinkAbout1981-08-18; City Council; 6715; Sewer Connection Fees-RestaurantsCITY OF CARLSBAD LE : JC :mmt Initial: -__I_ Deot. Head E August 18, 1981 City Atty ym DATE: S IJ f3 J E CT : SEWER CONNECTION FEES - RESTAURANTS STATEMENT OF THE MATTER Section 13.10.020 of the City Municipal Code has a procedure for determining EDU requirements. additional EDU for each 7 seats or fraction. The Code calls.for 2.67 EDUs for restaurants with no seating and an A recent study of the average water usage of some of Carlsbad's restaurants revealed that the "fast food" restaurants in the City (Jack-in-the-Box, Carl Is Jr. , Kentucky Fried Chicken and Baker's Tacos) have all had similar water usages, which are considerably lower on a per seat basis than "dinner house" type restaurants such as Dooley McCluskey's and Reubens. Also noted was that all the restaurants are now discharging more waste to the sewer than they were original ly charged for. In many cases the"undercharge" occurred because the connection was made years ago under a different set of guidelines. cases, the number of seats originally estimated by the restaurant has been revised upward to accommodate more business. connection fees to effect the increased demand on the sewer system. I In other The City has no method of assessing additional For "fast food" and delicatessen restaurants, a connection fee based on fewer EDUs seems more equitable. revise restaurant connection fees. The City also should have the mechanism to annually review and FISCAL IMPACT At $1,000 per EDU, the proposed Code Amendment formula would result in a sewer fee of $7,000 for most fast food or delicatessen restaurants. connection fees annually would result in additional connection fees to the City of about $150,000. The ability to review ENV I RONMENTAL IMPACT No impact. RECOMMENDATION Introduce Ordinance No. Municipal Code. 706/Amending Chapter 13.10.020(c) (7) of the Carlsbad EXH I BITS 1. Memorandum to City Manager. 2. Ordinance No. 7& Amending Chapter 13.10.020(c) (7) of the Carlsbad Nunicipal Code. WITHDRAWN August 11, 1981 TO : CITY MANAGER FROM : C I TY ENG I NEER S UB J E CT : SEWER CONNECTION FEES - RESTAURANTS The Engineering Department has received numerous complaints from fast food restaurants (such as Carls) that they are being overcharged for sewer connection fees. Section 13.10.020 of the Carlsbad Municipal Code establishes dwelling unit equivalents (EDUS) for restaurants at 2.67 EDUs plus one EDU for each seven seats. Using this formula, the connection fee for various existing restaurants would have been as follows: CARLS $1 5,670 REUBENS 20,670 TWIN INN 45,670 DOOLEYS 32,670 KENTUCKY FR I ED 12,670 The Engineering Department reviewed the water usage in restaurants and found that the fast food establishments use relatively less water/sewer than regular d i nner houses (see attached survey). Based on the survey, we recommend that fast food restaurants and delicatessens be assigned equivalent dwelling units using a different formula than other restaurants. The proposed dwelling unit equivalencies for delis and fast food restaurants (of less than 100 seats) would be seven. Based on the present connection fee of $1000/EDU, new restaurants in the fast food/deli category would pay $7000 to connect to the sewer. Fees for existing fast food/deli establish- ments would not be adjusted based on the new EDU process. The survey also revealed that, without exception, all restaurants are using more sewage capacity than they originally paid for. The Code presently has a mechan- ism for reviewing water/sewer usage of industrial customers and collecting additional connection fees if they exceed the volume of sewage their connection fees were based on. The Engineering Department feels that the Code should be amended to allow an annual review of water/sewer usage by restaurants. If the restaurant exceeds the number of EDUs it originally paid for, additional fees could be collected. The fee adjustment would affect existing restaurants as fol lows: . 4' SURVEY OF CAFESBAD RESTAURANTS currently EDUS Rased Allocated EDUs Req'd Per Chap 13 seats Restaurant EDUs on H20 Usage Street & # ---- 3878 Csbd 2952 Harding 2520 ECR 901 Elm 950 Elm 2600 ECR 618 Grand 850 Tamarack 752 Grand 1025 Elm 3050 Pi0 Pico 278 State 2515 ECR 745 Elm 2978 Csbd 100 0 344 32 90 88 208 54 120 62 75 250 49 130 122 70 800 Anchorage Baker's Tacos SambO'S Jack-in-the-Box Carl's Jr. (Elm) Carl's Jr. (ECR) Dooley' s Tip Top Meats Daisys rilarrons Tony's #2 Wayside Inn Paparazzi's COCO'S Reuben' S Kentucky Fried Ch. Xn Inn's 17.67 2.67 52.67 7.67 15.67 15 . 67 32.67 10.67 20.67 11.67 13.67 38 . 67 9.67 21.67 20.67 12.67 45.67 8.3 5.0 19.3 4.2 6.6 6.3 34.6 8.3 15.3 2.98 10.8 12.8 1.8 57.0 5.5 26.7 2 1 7 1 2 Septic 19 5 5 1 2 4 1 11 1 8 Page -2- RESTAURANT An c ho rag e Bakers Sambos Jack-in-the-Box Carl's Jr. (Elm) Dool ey ' s Tip Top Meats Daisy' s Mar ron ' s Tony's #2 Wayside Inn Paparazzi 's Coco' s/Reubens Kentucky Fried Chicken Twin Inns ADDITIONAL CONNECTION FEE $ 6,300 4,000 12,300 3,200 4,600 15,600 3 , 300 10,300 1,980 8 , 800 8,800 800 46 , 000 4 , 500 18,700 $149,180 The "undercharges" 1 isted above are partly a result of restaurants underestimat- ing the number of seats they will ultimately need to serve their customers and partly a result of different methods of calculating EDUs in the past. The fiscal impacts are as follows: The proposed ordinance would: 1. generate additional sewer connection revenues from existing restaurants in the approximate amount of $150,000; 2. reduce future connection fees to fast food/del i restaurants by an unspecified amount; 3. not affect monthly sewer user fees. LE :mmt 8/11/81 1 2 3 4 5 6 7 a 9 10 11 12 n 6 c G 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 7061 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 13, CHAPTER 13.10 OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF SECTION 13.10.020(~)(7) TO REVISE THE EQUIVALENT DWELLING UNIT DETERMINATION FOR FAST FOOD RESTAURANTS. The City Council of the City of Carlsbad, California does ordain as follows: SECTION 1: That Title 13, Chapter 13.10, Section 13.10.020 of the Carlsbad Municipal Code is amended by the amendment of Subsection (c)(7) to read as follows: " (c) (7) Restaurants: 2.67 No seating 2.67 plus Seating 1.00 per each 7 seats or fraction thereof Delicatessen or fast food, using only disposal tableware 7.00 for up to 100 seats 1.00 for each add'l 12 seats or fraction thereof The City Engineer shall annually review the volume of wastewater discharge into the sewer by a restaurant. If the volume exceeds the EDU's paid for by the restaurant, the City Engineer shall collect additional connection fees." EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days after its adoption. INTRODUCED AND FIRST READ at a meeting of the Carlsbad City Council held on the day of , 1981, and thereafter PASSED AND ADOPTED at a meeting of said City Council held on the day of , 1981 by the following vote, to wit: AYES: NOES : ABSENT : RONALD C. PACKARD, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 2.