HomeMy WebLinkAbout1983-12-06; City Council; 7231-1; Sewer user charges4B# 7231 SUP- 1
WTG. 12-6-83
DEPT. U/M
RECOMMENDED ACTION:
TITLE:
CITY AllYV& SEWER USER CHARGES
CITY MOR.,=
It is recommended that the Council introduce Ordinance No. 74&7 adjusting sewer service fees.
ITEM EXPLANATION:
The cost of sewage treatment is increasing significantly this year because of the
addition of secondary treatment at the Encina Plant,
year's budget requirement, as an example, is $676,444 as compared to the previous
year's requirement of $394,000. The cost of Operation of the collection system
has also increased due to increased operating costs and the change to an enter-
prise operation this year. A detailed analysis of revenue requirements and fee
adjustments is at Exhibit 1.
Carlsbad's share of this
The fee adjustments are as follows:
Residential $5.25 to $6.75 28.6% increase
Restaurant $10.25 to $13.20 28.8% increase
Volume 52@/100 cu. ft. to
67@/100 cu. ft. 28.8% increase
Monthly charges for local agencies for residential service are as follows:
Oceanside $12.15
San Marcos $ 8.25
Escondido $11.68
Vista $10.00
Buena (Shadow Ridge) $15.17
Leucadia $ 5.00
FISCAL IMPACT:
The recommended sewer service fees will increase current fees by about 28.6%
and will return sufficient revenues to maintain a reserve of $200,000 (15%) in
the sanitation fund this fiscal year.
EXHIBITS :
1.
2. Ordinance No. 7&&7 .
Memo from U/M Director to City Manager of November 22, 1983
.-
SEWER RATE ANALYSIS
FY 83-84
Recommendation
It is recommended that the sewer service charges be increased effective with
the January billings as follows:
From - To lncreases - %
Residential EDU 5.25 6.75 1.50 28.6
Restaurant EDU 10.25 13.20 2.95 28. a
Volume 52$/100 cu. ft. 67C/100 cu.ft. 15C 28.8
This is a 28.5 increase and will increase the average residential sewer costs
by $18.00 per year.
Background
The current sewer rate ($5.25 per EDU) went into effect in July 1980. This
rate consisted of $3.25 per EDU for sewer service fees and $2.00 per EDU for
Phase III/IIIA capital contribution.
1983 concurrent with deletion of the capital contribution.
Analysis
A. Costs
The sewer service is made up of two components:
The service charge went to $5.25 in March
1. Encina Treatment Costs
2. Conveyance Systems Costs
The Encina treatment costs have increased about 40% from previous years and
is due primarily to the increased costs of trebtiiig sewage to the secondary
level.
is $676,444.
This is an increase of about 32% and can almost entirely be attributed to
establishing a reserve for depreciation which had not previously been done.
cost summary is as follows:
This year's budgeted costs are about $2,537,629 of which Carlsbad's share
The conveyance system budget is recommended to be about $600,465.
The
Enci na $ 686,444
Conveyance 600,465
$1,276,909
B. Revenues
The principle source of revenues for the Sanitation budget is from service
fees, however, some revenues are derived from other sources and should be included
in the overall analysis.
balance of $379,137 at the beginning of this fiscal year.
and, it is recommended that it be retained at about $200,000 as an emergency
reserve. It is about 15% of tire kudgeted amount. Revenue sources other than
service fees are outlined below:
Additionally, the Sanitation budget will have a fund
This could be reduced,
Interest $40,000
Encina Carry Over -0-
Other Services
(lateral installs, etc.) 25,000
$65,000
C. Rate Determination
The Sanitation fund will be operated as an enterprise fund in FY 83-84.
It will be operated as a business, although, unlike a fee enterprise business
which has profit as a goal, the Sanitation fund is targeted to "break even".
establishment of the rate, therefore, becomes a matter of matching revenues to
costs. Costs are estimated to be about $1,276,909. Revenue of about $65,000
(previous paragraph) is anticipated from other than service fees.
must therefore provide $1,276,909 - $65,000 or $1,211,909.
The
Service fees
The service fee rate structure includes several components other than the
residential charge.
strength of effluent as measured in suspended solids (S.S.) and organics measured
in Biological Oxygen Demand (BOD) and large volume users whose treatment costs are
There is a higher EDU charge for restaurants based on
'based on water consumption readings. The latter provided about $78,000 of add-
itional revenue last j.ear.
Revenue requirements appear to be about 28.5Z. greater than last year. Applying
this factor will result in the following revenue return:
Residential
Restaurant
(6 x 5.25 x 14,300) - - 450,450
(6 x 6.75 x 14,500) - - 587,250
1,037,700
30.750 - (6 x 10.25. x 500) -
(6 x 13.20 x 520) - - 41; 184
71.934
Volume (6 x .52 x 12,500 units)= 39,000
(6 x .67 x 12,500 units) = 50,250 89.250
Total $1,198,884
d
The service fee return is approximately $13,000 short, however, this is not
considered to be significant (about 1%) on the basis of estimates used in
developing the information used in this analysis.
The FY 84-85 projections are less clear as to revenue requirements. The
recommended rate will return about $1,400,000; additional revenues $100,000
(interest, laterals, etc.) shotdd return about $1,500,000 which is considered
to be sufficient.
the waiver from secmdary treatment, more clearly defined operating costs of
Encina as the plant comes on line and the strength of our current building
resurgence.
V c-- Factors which are imparting cost/revenue projections include V’’
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ORDINANCE NO. 7067
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA AMENDING TITLE 13, CHAPTER 13.12 OF THE CARLSBAD
MUNICIPAL CODE BY THE AMENDMENT OF SECTION 3.12.020 TO
ADJUST SEWER SERVICE CHARGES.
WHEREAS, the City Council of the City of Carlsbad does, from time to
time, establish sewer service fees to support the City's sewer maintenance
operations; and
WHEREAS, it has become necessary to increase the sewer service fee to
pay the cost of operations for Fiscal Year 1983-84; and
The City Council of the City of Carlsbad does ordain as follows:
SECTION 1: That Title 13, Chapter 13.12 of the Carlsbad Municipal Code
is amended by the amendment of Section 13.12.020 to read as follows:
13.12.020 Sewer Service Charges Established. All persons whose premises
in the City are served by a connection to the City sewer system whereby sewage
or other waste material is disposed of through such system shall pay a sewer
service charge as established by this section:
1. Residential
A. For each single family dwelling
B. For each unit a duplex, flat, apartment, court, multiple dwelling, mobile home
complex or trailer court
2. Commercial & Industrial
A. For each unit of a motel, hotel, rooming,
lodging or boarding house, ten units or less
- each additional unit over ten - each unit with kitchen facilities
B. Bakeries, markets with disposals,
mortuaries and restaurants
C. Schools and all other commercial uses not listed above
MONTHLY SEWER
SERVICE CHARGE
$6.75
6.75
2.70
2.05
6.75
3.20
6.75
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D.
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F.
Car washes, wash racks, laundries and other
enterprises where water is the primary
commodity to carry on said business and
said water is discharged into the sanitary
sewer system
MONTHLY SEWER SERVICE CHARGE
$6.75 per EDU
0.52 per each 100
cubic feet
Each enterprise where water is the primary
commodity to carry on said business and said water
characteristics exceed the sewer service area average for suspended solids (S.S.)
0.67 x (180 +
[S.S.] + 360)
For each unit of an office of commercial building
or any establishment having facilities for trailers, campers or boats. 6.75
EFFECTIVE DATE: This ordinance shall be effective thirty (30) days after
its adoption, and the City Clerk shall certify to the adoption of this ordinance
and cause it to be published at least once in the Carlsbad Journal within
fifteen (15) days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council
on the 6th day of December , 19 - 83, and thereafter
PASSED AND ADOPTED at a regular meeting of said City Council held on the
20th day of Decepnber , 19 - 83 by the following vote, to wit:
AYES:
NOES: Mne
ABSENT: rJone
Council Nmbers Casler, -is, Kulchin, Chick and Prescott
MARY H. CG$LER, Mayor I'
ATTEST :
ALETHA L. RAUTENKRANZ, City clerql
2.