HomeMy WebLinkAbout1992-07-28; City Council; 11813; FIXING RATES FOR SEWER SERVICESbI I QYP GAHLSBA~) - AGENDplLL L,i, < I I - I I AB# /( 81 3 I TITLE: I DEPT.
MTG. 7/28/92
DEPTrh/rwn-
FIXING RATES FOR SEWER SERVICES CITY A
CITY N
I I I I RECOMMENDED ACTION: I ,2439 Hold a public hearing and adopt Resolution No. fixing rates for sewer service tc
be effective July 15, 1992.
ITEM EXPLANATION:
The Sewer Enterprise Fund is dependent on sewer service fees and Lateral Installatior
fees for its support. No general fund revenues are dedicated to the operation andlo1
maintenance of the sewer system.
A Sewer Rate Study, prepared by James M. Montgomery, Consulting Engineers,
Incorporated was accepted by Council on December 18, 1990. At that meeting, the City
Council directed staff to prepare the required ordinances for Council consideration at
a noticed Public Hearing.
Q w 6 oc 0, e. 4
At the March 19, 1991 Council meeting the present residential sewer service fee of
$11.58 per month was adopted. This rate includes depreciation of historic asset value
of the system. The Sewer Rate Study assumed that sewer rates would be increased
during the 1990 - '91 fiscal year to cover depreciation. However this did not occur until
1991 - '92 fiscal year, subsequent to the last sewer rate increase. Also included in the
Sewer Rate Study was the recommendation that depreciation be increased gradually
from 75% in 1991 to 100% by 1993 based on historic cost of assets.
Based on the Study, staff is recommending a sewer rate increase from $11.58 to $13.06
per month, an increase of 12.7% or $1.48. This increase is required to fund depreciation
as previously stated and to cover operating costs for the sewer enterprise fund as
recommended by the Sewer Rate Study. The completion of the Sewer Rate Study was
delayed approximately a year and as a result the rates were not increased as scheduled.
This proposed increase will fund depreciation for this fiscal year (1992 - ' 93). However,
smaller improvements depreciation will increase next year and rates may need to be
1 increased at that time to fund the increased depreciation. This increase is also
comparable with current rates for sewer services in other cities (See Exhibit "A".)
due to completion of Phase IV at Encina, the pump station at Home Plant and other
FISCAL IMPACT: .. z s Current sewer service rates do not provide sufficient revenues to pay for operating and
depreciation expenses for the 1992 - '93 fiscal year. The proposed increase in sewer
a service rates will provide an additional $1.2 million in annual revenue to the Sewer
r! Enterprise Fund. The new rates will generate sufficient revenues to cover current g operating expenses and fund the replacement of existing sewer lines and equipment. The = average single family home will experience a monthly increase of $1.48. On an annual 0 0 basis this rate increase equals $17.76 for each home owner.
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Page 2 of Agenda Bill No. I I! 8 1 3
BREAKDOWN OF PROPOSED MONTHLY RATE
Collection $ 4.91 Per Month
5 8!? Encina $558 Per Month
Depreciation $ 2.27 Per Month
TOTAL $13.06 Per Month
EXHIBITS:
1. Resolution No. 01 2- A 3 7
2. Exhibit "A'.
3. Exhibit "B".
4. Exhibit "c".
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March 18, 1992
Ref: 25
SEWER SERVICE CHARGES
AND CONNECTION FEE CHARGES
S.S. Charse/Mo. Connection FE
ENCINA SERVICE AREA
Vista
Carlsbad
Buena
Vallecitos
Leucadia
Encinitas
$14.92
11.58
15.00
13.30
16.70
11.67
$1,782
1,610
3,000
2,400
2,800
1,500
Average $13.86
OTHER SAN DIEGO COUNTY AGENCIES
Escondido $13.60
Fallbrook San. Dist. 22.34
Oceanside 18.31
San Diego 20.00
Average $18.56
U
$2,182
$5,000
1,565
6,070
$4,630
5,884
EXHIBIT "B"
I 0 i
1 RESOLUTION NO. 9 2 - 2 3 9
2
3
4
5
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CAMSBAD, CALIFORNIA, ESTABLISHING
SEWER SERVICE FEES
WHEREAS, the City Council of the City of Carlsbad has the authori
6 11 establish fees for sewer services as provided tin Section 13.12.080 of the Car
7 // Municipal Code, and City services; and
8 II
9 /I WHEREAS, from time to time said fees are reviewed and evaluated to mai
10 ll an adequate fee structure recovering costs for sewer services; and
11
and 12
WHEREAS, the City Council has determined the cost of providing sewer ser
13 11 WHEREAS, the City Council has held the necessary public hearings and all
14
15
for public comment on the establishment of said fee.
16 ll NOW, THEREFORE, BE IT RESOLVED by the City Council of the C
17 // Carlsbad, California that the fee schedule shown in Exhibit C attached hereto is h
18
19
adopted and shall become the official fee schedule for the City of Carlsbad. Al
shall become effective on July 15, 1992.
1
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2o I/ Ill
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23
Iff
Iff
24 Ill
25 111
26 11 Ill
27 Ill
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W W
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Carl
City Council held on the chday of Jay , 1992, by the following vote to wit:
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5
6
7
8
9
10
11
12
13
14
15
16
17
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19 il
AYES: Council Members Lewis, Kulchin, Larson, Stanton
NOES: None
ABSENT: Council Member Nygaard
ATTEST:
t&& 2 Q&
ALETHA L. RAUTENKRANZ, City derk
(SEAL)
i 20
21
22
23
24
25
26
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28
5' e i
The rates for different groups for FY 1992 - '93 are shown below. Residences h,
flat rate of $13.06 per month. All other customers pay based on their water usagl
each group's unit cost per hundred cubic fee of water used ($/HCF), subject
minimum monthly charge of $13.06.
SEWER RATE CHARGES
USERS UNIT COST MINIMUM MON'T
$/HCF CHARGE
Group I Residential
Group I1 Commercial
Group I11 Commercial
Group IV Commercial
Group V Institutional
Schools per ADA
Elementary
Junior
High
Boarding
Flat Rate
$1.61
2.11
3.34
1.60
0.29
0.58
0.87
4.35
Group IV Large Volume Users
Hughes Aircraft $1.30
Beckman Micro Oper 1 4.38
Culligan 1.25
$13.06 per month
$13.06
$13.06
$13.06
$13.06
$13.06
13.06
13.06
~ ~~~
EXHIBIT
@ 8 Carlsbad Journal
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Proof of Publication
STATE OF CALIFORNIA, ss.
COUNTY OF SAN DIEGO,
I am a citizen of the United States and a resident of the county aforesaid;
I am over the age of eighteen years, and not a party to or interested in the above entitlc
I am principal clerk of the printer of the Carlsbad Journal, a newspaper of general ci
published weekly in the City of Carlsbad, County of San Diego, State of California, and which nl
is published for the dissemination of locaI news and intelligence of a genera1 character, a
newspaper at all times herein mentioned had and still has a bona fide subscription list (
subscribers, and which newspaper has been established, printed and published at regular inter.
said City of Oceanside, County of San Diego, State of California, for a period exceeding one 1
preceding the date of publicatic
notice hereinafter referred to; an1
NOTICE OF PUBLIC HEARING FIXING RATES FOR SEWER SERVICES
Ihe Cily Council of the City of Carl- NOTICEIS HEREBY GIVEN Ihat
sbad will hold a public hearing at the City Council Chambers. lZD0 Carlsbad Village Drive. Carisbad. California. al6:OO P.M.. on Tuesday, July 28. 1992. to consider an in- crease in residential sewer rates from $11.58 to 513.06 per month. based on (he Sewer Rele Sludy pre- pared by James M. Montgomery. Consulling Engineers. Inc. Current sewer service rates do not provide sulXcienl revenues to pay for oper- ating and deprecialion expenses for Ihe 1992-93 flscal year. The new rates will generate sullicienl re. venues lo cover current operating expenses and fund lhe replace-
equipment. men1 of exisling sewer lines and
ing (his matter. please call Bob Co- Ifyou have any questions regard-
ales. District Engineer. at Ihe Carl.
3387, ex(. 126. sbad Municipal Water District. 438-
If YOU challenge the increase in the residential sewer rales in court.
YOU may be limiled to raising only chose issues raised by you or some one else al the public hearing de- scribed in this nolice. or in written
Cily of Carlsbad Cily Clerk's Omce correspondence delivered lo Ihe
a1 or prior lo Ihe public hearing. Applicant Cily of Carlsbad
c1 3048: July 16,1992 CARLSBAD CITY COUNCIL
notice of which the annexed is ,
copy, has been published in eac
and entire issue of said newspape
in any supplement thereof on thl
ing dates, to-wit:
July 16
~ ~~
~~
I certify under penalty of perjury
Carlsbad, County of San Diego,
California on the 16th
day of July 1992
foregoing is true and correct. Ext
~Q,! i?3T!:)& -/tIL,[
Clerk of tk
0 i
NOTICE OF PUBLIC HEARING
FIXING RATES FOR SEWER SERVICES
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad will hold a pub1 ic hearing at the City Council Chambers, 1200 Carlsbad Village Drive,
increase in residential sewer rates from $11.58 to $13.06 pre month, based on the Sewer Rate Study prepared by James M. Montgomery, Consulting Engineers, Inc. Current sewer service rates do not provide sufficient revenues to pay for operating and depreciation expenses for the 1992-93 fiscal year. The new rates will generate sufficient revenues to cover current operating expenses and funa the replacement of existing sewer 1 ines and equipment.
If you have any questions regarding this matter, please call Bob Coates, District Engineer, at the Carlsbad Municipal Water District, 438-3367, ext. 126.
If you challenge the increase in the residential sewer rates in court, you may be 1 imited to raising only those issues raised by you or someone else at the public hearing described in this notice, or in written correspondence delivered to the City of Carlsbad City Clerkâs Office at or prior to the public hearing.
APPLICANT: City of Carlsbad PUBLISH: July 16, 1992 CARLSBAD CITY COUNCIL
Carlsbad, California, at 6:OO p.m., on Tuesday, July 28, 1992, to consider ar