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HomeMy WebLinkAbout1999-05-04; City Council; 15173; Setting Rates for Water and Sewer Services. 4/93 3 P e % . . p 2 2 P 3 > 2 ii . . zi 5 d 5 8 CARLSBAD MlhCIPAL WATER DISTRICT/CITY 0, CARLSBAD - AGENDA BILL AB# 15: 1 7 3 TITLE: MTG. 05/04/99 SETTING RATES FOR WATER, RECYCLED WATER AND SEWER SERVICES DEPT. CMWD DEPT. HD. m CITY ATTY. a+ CITY MGR.-+ RECOMMENDED ACTION: (JOINT CITY COUNCIL/CMWD BOARD OF DIRECTORS MEETING) Hold a public hearing and adopt Board Resolution No.1051 adjusting various rates for water, recycled water services, and City Resolution No.qq-159 adjusting various rates for sewer services. ITEM EXPLANATION: WATER AND RECYCLED WATER Staff has reviewed the status of the Water Operations Fund Balance and the present water rates. This review has resulted in a determination that the present fund balance exceeds the level of reserves that was recommended in the District’s Rate Study approved by the Board in 1996. The excess funds are a result of revenue being generated by the water commodity rates which were set to provide for funding of capital projects construction, the largest being Phase II of the Recycled Water Program. These projects were anticipated to be under construction in fiscal year 1995-96. Because these projects have not yet begun, expenditure of the funds has not yet occurred resulting in a fund balance that exceeds the adopted level of required reserves stated in the previously mentioned Rate Study.- To deal with future setting of rates, staff has developed a financial “water rate model” to better forecast future operational expenses and establish subsequent revenue requirements. With improved water rate forecasting and with the current full-funding of the adopted level of annual operations reserves, staff is also recommending adjustments to the water commodity rates as follows: l Reducing existing water commodity rate from $1.70 to $1.60 per unit of water or 748 gallons; e.g., an average residential customer in the CMWD service area, using 16 units of water, would realize a decrease in their monthly water charge from $36.45 to $34.85. l Reducing the existing conservation rate from $1.52 to $1.44 (90% of commodity rate). l Reducing the existing recycled water rate from $1.62 to $1.52 (95% of commodity rate). SEWER Staff has reviewed the status of the Sewer Operations Fund Balance and the present sewer rates. This review has resulted in a determination that the present fund balance exceeds the level of reserves that was recommended in the Districts Rate Study approved by the City Council in 1996. Page 2 of Agenda Bill No. I $ !7,3 The unreserved funds in Sewer Operations are a result of revenue being generated by the sewer services rates which were set to provide for funding for operations and maintenance of the City’s sewer collection system as well as the City’s share of Encina Wastewater Operations. As a result of a reorganization within Encina’s operations, the City has realized a reduction in annual Encina cost of services. This resulted in a fund balance that exceeded the level of required reserves stated in the previously mentioned adopted Rate Study. Staff recommended and Council approved appropriating the unreserved funds to the Sewer Fixed Asset Replacement Fund at the April 13, 1999 Council meeting. To deal with future setting of rates, staff has developed a financial “wastewater rate model” to better forecast future operational expenses and establish subsequent revenue requirements. With improved wastewater rate forecasting and full-funding of the adopted level of annual operations reserves, staff is recommending adjustments to the sewer services rates as follows: l Reduce the existing monthly sewer flat rate charge (single family residences) from $15.00 to $13.00, and l Reduce the existing monthly sewer flow-based charge by 9.6% for all remaining customer categories. It is recommended that the Council set a Public Hearing for May 4, 1999, to take public input regarding the proposed rate adjustments. FISCAL IMPACT: WATER The proposed reduction in commodity rates will decrease annual revenue to the Water Enterprise Fund by approximately $400,000. Using previous year’s net operating income to augment this fund’s revenue stream, sufficient funds will be generated to cover annual operating expenses and the increased payment to the Capital Replacement Fund. The average single-family home using 16 units of water will experience a monthly decrease of $1.60 which equals $19.20 annually. RECYCLED WATER The proposed new rates and subsidy from the potable water commodity rate will generate sufficient revenue to cover annual operating expenses and the increased payment to the Capital Replacement Fund. SEWER The proposed reduction in sewer service rates will decrease annual revenue to the Wastewater Enterprise Fund by approximately $505,000. Using previous year’s net operating income to augment this fund’s revenue stream, sufficient revenue will be generated to cover annual operating expenses and the increased payment to the Capital Replacement Fund. Page 3 of Agenda Bill No. /5: /7 3 SEWER, cont. The average single-family home will experience a monthly decrease of $2.00 which equals $24.00 annually. EXHIBITS: 1. Carlsbad Municipal Water District Resolution No. 1051 Setting Rates For Water And Recycled Water Service. 2. City Council Resolution No.59 -IS 3 Setting Rates For Sewer Services. R:\CMWD\Word\99 Agenda Bill&Agenda Bill - Reduction in Water, Recycled Water (L Sewer Rates May 1999.doc 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 1051 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CALIFORNIA SETTING RATES FOR POTABLE WATER AND RECYCLED WATER SERVICES. WHEREAS, District staff has developed a financial “water rate model” to better forecast future operational expenses and establish subsequent revenue requirements; and WHEREAS, with improved water rate forecasting and with full-funding of the Board adopted level of annual operations reserves, existing commodity rates for potable and recycled water services may be adjusted to more accurately generate required revenue to fund all costs of annual water service operations. . ‘. NOW, THEREFORE, BE IT RESOLVED by the Board of Directprs of the .Carlsbad Municipal Water District, California as follows: 1. That the above recitations are true and correct. 2. That the commodity rates for potable and recycled water services be adjusted as follows: A. Reduce potable water commodity rate from $1.70 to $1.60 per unit of water, B. Reduce recycled water commodity rate from $1.62 to $1.52 per unit of water, and C. Reduce conservation commodity rate from $1.52 to $1.44 per unit of water. 3. That this Resolution shall become effective sixty (60) days after its adoption. I I I I I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Municipal Water District held on the 4 th day of May , 1999, by the following vote: AYES: Board Members Hall, Nygaard, Finnila & Kulchin NOES: None ABSENT: Board Member Lewis MATT HALL, Vice President ',> ATTEST: Z, Secretary KAREN R. KUNDTZ, Assistant Secretary PC RESO Nb. -2- 5 RESOLUTION NO., 99-157 A RESOLUTION OF CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA SETTING RATES FOR SEWER SERVICES. WHEREAS, District staff has developed a financial “sewer rate model” to better forecast future operational expenses and establish subsequent revenue requirements; and WHEREAS, with improved sewer rate forecasting and with full-funding of the City Council adopted level of annual operations reserves, existing rates for sewer services may be adjusted to more accurately generate required revenue to fund all costs of annual sewer service operations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That the rates for sewer services be adjusted as follows: A. Reduce uniform rate for customer classification Group I Residential - Single Family Residence from $15.00 to $13.00 per month, and B. Reduce flow-based unit rate for customer classification Group I Residential - Multi-Family Residence and Mobile Home, and Groups II, III, IV, V and VI by 9.56% in accordance with attached Exhibit A (“Wastewater Operations - Sewer Service Charges”). 3. That this Resolution shall become effective sixty (60) days after its adoption. / 6 1 2 3 4 5 6 7 8 9 10 : 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad held on the 4 th day of May , 1999, by the following vote: AYES: Council Members Hall, Nygaard, Finnila & Kulchin NOES: None ABSENT: Council Member Lewis s ‘ CLAUDI!k A LEWIS, Mayor .', ;MATT HALL, Mayor Pro Tern ATTEST: KAREN R. KUNDTZ, Assistant City Clerk PC RESO NO. -2- 1 . EXHIBIT A WASTEWATER OPERATIONS SEWER SERVICE CHARGES User Category Croup I Residential: Single Family Residence Multi-Family Residence (” Mobile Home I” Croup II Commercial f2J Croup Ill Commercial f21 Group IV Commercial f2) Group V Institutional Schools per ADA f3’ Elementary Junior High Boarding Group VI large Volume Users Beckman Micro Oper I Culligan Effective July 4, 1999 Unit Cost Uniform $/hcf of Water Rate m $13.00 $1.85 m _’ $10.85 m $1.53 - $2.01 - $3.17 ‘& - $0.20* $0.39* w $0.59* s $2.92 * $4.16 s $1.18 (1) Unit cost shown is 90 percent of metered water use. (2) Unit cost shown is 95 percent of metered water use. (3) Schools - assumes a 200day working year; A DA - Average Daily Attendance. Note: * Denotes charge per student based on ADA. Revised: April 2 1, 1999 . PROOF OF PUBLICATION (2010 8 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego I am a citizen of the United States and a resident of the County aforesaid: l am over the age of eighteen years and not a party to or interested in the above- entitled matter. I am the principal clerk of the printer of North County Times formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have been adjudged newspapers of general circulation by the Superior Court of the County of San Diego, State of California, under the dates of June 30, 1989 (Blade-Citizen) and June 21, 1974 (Times- Advocate) case number 171349 (Blade-Citizen) and case number 172171 (The Times-Advocate) for the cities of Escondido, Oceanside, Carlsbad, Solana Beach and the North County Judicial District; that the notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: April 19, 1999 I certify (or declare) under penalty of perjury that the foregoing is true and correct. .sa!! MaJxos Dated at California, this 19th day April, 1999 +5 ----- ______--------- ------ Signature NORTH COUNTY TIMES Legal Advertising This space is for the County Clerk’s Filing Stamp Proof of Publication of Notice of Public hearing -------------------------- t%llLSm MuNlClPAl WATER DlSTilCT REVlSlONS TO WATER, RECYCLED WATER &f$ WASTEWATER ! RATES AND FEES NOflCE NOTICE 1s HEREBY GIVEN that the Cky Council of the c’ Dtrwtors of the cadsbed kbJnicipal water Dll will ho8 ,~ftki&8id $8 Boirtl bl Tuesday, May 4, f999 at 6:OO p.m. in the My CounciltXambeis beated at 12 9 &klxl Vitbje Drive, Car&ad, Calitomia, to #scuti revising varMs rates and fees associated with water, mcycM Water and wastewater .sbtvic8s, as outlined In a recfn@ completed Oistrict Staff Analysis of operatin fund resen@ and rates. RW of the staff anapia irlclU~< the fouow&lg: l ~the~~odityRateirom51.70t051.60peru~eivratar. .’ 1 .;~~BxlE~m dimtied 7iiyded water Commo8ity Rate from $1.62 to $1.52 vr •;ngiis~ dh47ty ~mservation CommodityRate from $1.52 5 51.44 per . . I Sl.llj Ifyouhawq~orcomtllents, ~ondavmouuh hidav. between 8 iIF= riohtad Bob Graaney at (780) a-2722, km. to 5:&l km. -. CARLSBAD MUNICIPAL WATER DISTRICT REVISIONS TO WATER, RECYCLED WATER AND WASTEWATER RATES AND FEES NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad and the Board of Directors of the Carlsbad Municipal Water District will hold a joint public hearing on Tuesday, May 4, 1999 at 6:00 p.m. in the City Council Chambers located at 1200 Carlsbad Village Drive, Carlsbad, California, to discuss revising various rates and fees associated with water, recycled water and wastewater services, as outlined in a recently completed District Staff Analysis of operating fund reserves and rates. Recommendations of the staff analysis include the following: 0 Revise the existing Commodity Rate from $1.70 to $1.60 per unit of water. 0 Revise the existing discounted recycled water Commodity Rate from $1.62 to $1.52 per unit of water. 0 Revise the existing discounted conservation Commodity Rate from $1.52 to $1.44 per unit of water. 0 Revise the existing monthly “flat rate” Wastewater Service charge from $15.00 to $13.00 per month. 0 Revise the existing monthly “flow-based” Wastewater Service charge by a 9.56% per- unit reduction for all customer classifications as follows: Customer Classification Group I Residential Group II Commercial Group III Commercial Group IV Commercial Group V Institutional Elementary Junior High Boarding Group VI Large Volume Beckman Culligan Current $2.05 $1.69 $2.22 $3.51 $0.22 $0.43 $0.65 $3.23 $4.60 $1.31 Revised $1.65 $1.53 $2.01 $3.17 $0.20 $0.39 $0.59 $2.92 $4.16 $1.18 If you have questions or comments, please contact Bob Greaney at (760) 438-2722, Monday through Friday, between 8:00 a.m. to 5:00 p.m. If you challenge the revisions to the water, recycled water and/or wastewater rates and fees in court, you may be limited 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 Clerk’s Office at, or prior to, the public hearing.