The URL can be used to link to this page

Home My WebLink About26-Water Department CITY OPSAN BERN_DINO - REQUEST p. COUNCIL ACTION From: Bernard C. Kersey General Manager Dept: Water Department Subject: Request Setting of Public Hearing for Sewer Rate Increase Date: July 29. 1993 Synopsis of Previous Council action: None. Recommended motion: That the Mayor and Common Council set a hearing at the regularly scheduled Council Meeting at 10:00 a.m. on September 7. 1993. for the purpose of establishing new sewer rate increases within and outside the City of San Bernardino. .' Contact person: Bernard C. Kersey Supporting data attached: Yes Phone: 5091 Ward: All FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.! (Acct. DescriDtion) Finance: Council Notes: 75-0262 Agenda Item No :2b - - - CITY ,OF SAN BERNA_UNO - REQUEST ,FOa COUNCIL ACTION STAFF REPORT The Board of Water Commissioners on June 22, 1993, conducted an extensive review of the 1993-1994 Sewer Fund Budget and the proposed increases to the sewer service charges. The Board unanimously voted to authorize the General Manager to request that the Mayor and Common Council establish a date for a public hearing to increase the sewer service charges. These. fees and charges were last increased on september 1, 1991. During the past few months, Water Department staff has conducted a comprehensive analysis of the annual wastewater system connection and treatment costs to determine the revenues necessary to be derived from monthly sewer service charges. Staff examined several issues, including proposed new treatment standards and the additional facilities needed to meet these standards, increased permitting requirements, debt service, and the establishment of a rate structure that provides equity among all users. During the next five years, new regulatory standards will sianificantlv increase the budget. requirements of the Water Reclamation Plant. Most of these regulations require large capital expenditures to comply with the requirements, as well as significant sampling and laboratory testing costs. To comply with discharge standards established by the Regional Water Quality Control Board (RWQCB) and to ensure reliable operations, a number of capital improvement. proj ects have been undertaken and additional projects are required. All of these projects add significantly to sewer costs because the projects are built with funds raised from either bond sales or low interest state funded loans, which then require annual debt service. The Sewer Fund debt service will exceed $7 million dollars per year to fund all of the projects which must be built to satisfy regulatory requirements. Recent major changes in discharge standards have mandated construction of a complete tertiary treatment facility. The means chosen to meet these new standards is the RIX technology, which stands for Rapid Infiltration/Extraction. This program takes waste water from our facility, transports it by pipeline to our facility in Colton for percolation into the soil. The water is cleansed by the soil and then extracted by a series of wells located around the property. The water is treated one more time by Ultra Violet light for disinfection and then is discharged into the river. The total estimated cost for the facility and the pipeline from San Bernardino to Colton is $45,362,000. This cost is split between the City of San Bernardino, the city of Colton and the Santa Ana Watershed Project Authority (SAWPA). The Water Department's share of the facility and pipeline construction is $31,151,000. With additional Water Department related project management costs, and other costs and contingencies not included in the total $45,362,000 for the project, the estimated amount to fund San Bernardino's share of the project is increased to $37,000,000. 75.0264 . . The Water Department has secured financing of $20,000,000 from the state Water Resources Control Board (SWRCB) in the form of a 20-year, 3.5% loan from the state Revolving Fund. We are anticipating obtaining the remaining balance of funds ($17,000,000) from private sources, such as bonds or notes, until such time that the debt can be replaced with SWRCB funds, if available. As it stands, certain engineering costs, 35% of the land costs, and other ineligible costs associated with the project are not funded by the SWRCB loan and must be paid from other sources. The current total cost to operate, maintain, and repair the San Bernardino Water Reclamation Plant to provide sewage treatment at a level that meets the existing discharge permit conditions is $905 per million gallons excluding the capital related expenses. Additional facilities, currently under construction, that are required to meet pending new discharge requirements will cause increased O&M costs above those figures presented when they come on line. The sewer service rates provide revenue toward the day-to-day operational and maintenance costs, bond payments, equipment replacement, and process upgrades. Operations & maintenance and administrative costs have decreased 4.9% from 1992-93 estimated expenditures. The increase in the Sewer Fund, therefore, is reflected in the added debt service and reserve requirements for the new RIX project. OUr $14.90 proposed monthly residential sewer service rate would be the second highest per month rate among the agencies surveyed, and is sufficient to cover necessary costs to operate the sewage treatment facility, pay anticipated debt service and establish State of California required reserves. The new rate represents a 9.56% increase over the current rate of $13.60. The commercial rate is currently applied to other user types as defined in rate classifications adopted in September 1991. The rate structure addresses commercial, industrial, institutional, and mUlti-family uses with a varied rate for each classification. For instance, the current rate for Commerical is $1.10/hundred cubic feet (hcf) of water consumed. The new rate is $1.30/hcf and represents an 18.18% increase. In summary, the monthly sewer service rate is p~oposed to increase from $13.60 per month per single family resident to' $14.90 per month. The proposed rates for commercial, industrial, institutional, and multi- family users are based on water usage and benefit, and range from $0.70/hcf to $1.90/hcf. Industrial dischargers will be charged a rate of $908.33 per one million gallons of flow plus excess loading charges, if applicable, of $264.22 per 1,000 pounds of BOD and $324.28 per 1,000 pounds of SS. Therefore, the Board of Water Commissioners and the General Manager request a public hearing be set for September 7, 1993, to present the proposed increase in the sewer service charges. . . 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. RESOWTION OF THE CITY OF SAN BERNARDINO FIXING AND ESTABLISHING CHARGES FOR SERVICES AND FACILITIES FURNISHED BY THE CITY SEWERAGE COLLECTION AND TREATMENT SYSTEM LOCATED INSIDE THE INCORPORATED TERRITORY OF THE CITY: PROVIDING THAT USERS LOCATED OUTSIDE THE INCORPORATED TERRITORY OF THE CITY MAY RECEIVE SEWER SERVICES: AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO EXECUTE AGREEMENTS FOR USERS LOCATED OUTSIDE THE INCORPORATED TERRITORY OF THE CITY SUBJECT TO CERTAIN TERMS AND CONDITIONS: AND REPEALING RESOWTION NO. 91-361. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Users Located Within the'Incorcorated Territorv of the Citv. Pursuant to the provisions of Sections 13.16.020 and 13.32.170 of the San Bernardino Municipal Code, any premises which are served by a connection to the system of sewage and waste treatment of the City or are within 200 feet of, or are situated on real property adjoining an existing sewer system and not connected thereto, shall be charged and the owner thereof shall pay a sewer service charge based upon the following schedule: SEWER UTIlITY RATE COllECTION SYSTEM CHARGE TOTAl. MONlHl Y CITY CHARGE ClASSIFICATION REGIONAl. FACllmES .. TREATMENT CHARGE $1.35/month1unk $14.9Q/unk _I l5lngle-Famlly, Duplex. Triplex) Muld-Famlly, Mobile Home P_ (4 or More Units) $ 13.55 Per rnonih(unk $ 0.80 Per HCF . $ .15JtK:f $0.95JtK:f Retail, Cornmerdal, light Induslrial (Non--Ofice, Bakeries, Markets, n-m. Dry Cleaners) $ 1.15 Per HCF $ 1.25 Per HCF $ .15JtK:f $ .15JtK:f $1.30/11cf $ 1.4O/11cf Auto Repair, Car Wash Oftices, Motels (W1lhout R.esta1nnfS) $ 1.00 Per HCF $ .15JtK:f $1.15JtK:f 7/26/93 riEsoumON OPnIE arvOP~1NO PIXING AND ESTABlSIUNG CHAIlGESeSl!lMCBS AND PAcnnlI!S I'tlRNISIIED DYnIE arv Sl!Wl!llAGE COW!C'IYON AND TIlI!ATMENTSYS'IEM I.OCAmo INSIDE nIE INCORPOlIAmo 'I1!lIIIITORY OPnIE arv, PROVIDING n1AT USERS I.OCAmo OUTSIDE nIE INCORPOlIAmo 'J1!IIRATORY...... AND REPJWlNG RESOLlJIlON NO. 91-361. 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 ReslaUranIs, Hotels lHoIeIs/Molels wilh Restaurants) $1.75 Per HCF $.15M $ 1.9OA1cf ~undromats $ 0.95 Per HCF $.15M $ 1.10Jhcf Hospitals, Convalescent Homes $ 0.85 Per HCF $ .15.1K:f $I.l101tK:f Schools, Oourches, Nuney Schools, Oaycares $ 0.60 Per HCF $.15M $ 0.75M Indusby $908.33/MG .264..2211.000 LB5 BOD lOischalJe Flow) $324.2811.000 LB5 55 . HCF ~ 100 Cubic Feet of Water U.... Industries with excess strength discharge shall also be charged a surcharge for discharges in excess of 300 mg/l of Biological Oxygen Demand and Suspended Solids as established by resolution of the Board of Water Commissioners. Commercial dischargers, for the purpose of this resolution shall include all dischargers and all premises obligated to pay sewer service charges under this resolution other than residential dischargers. Charges for commercial dischargers shall be computed based upon actual water consumption as reflected by water meter readings for the billing period. Billings based on such water consumption may be reduced for the purpose of establishing sewer service charges subject to "seasonal" or "consumptive" use as recognized and approved by the Board of Water Commissioners of the City of San Bernardino. Residential dischargers, for the purpose of this resolution, shall be any single family dwelling unit, any duplex or triplex family dwelling unit not requiring a City license for occupancy and operation. SECTION 2. Users Located Outside the Incornorated Territorv of the citv. 7/26/93 2 'RESOLl1I'ION OP1lII! crJY OP .I!RNAROINO PIXING AND ESTABISHING CHARG. SERVICES AND PACIIITIES PURNISHI!O BY1lII! crJY Sl!W\!RAGE COLLl!CllON AND 'IlIEAmENI' SYS'I1!M LOCATI!D INSIDE 1lII! JNCORPORATI!D 'I1!lIlIITORY OP 1lII! crJY; PROVIDING lHAT USERS LOCATI!D OUl'SIDE 1lII! INCORPORATI!D TI!RllATORY...... AND REPEALING RESOLl1I'ION NO. 91-361. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Rates for users other than "residential" shall be computed on 21 the basis of actual water consumption as reflected by water meter 22 readings for the billing period, provided that billings based on 23 seasonal or consumptive uses as specified in section 1, may be 24 adjusted as provided for in Section 1. 25 (b) City shall have the right to terminate such services by 26 giving a ninety (90) day notice in writing to the user; that said 27 user and owner shall be subject to any increase in said fee or 28 fees, charges and amounts, which may be imposed from time to time (a) Any premises which are served by a connection to the system of sewage and waste treatment of the City shall be charged and the owner thereof shall pay a sewer service charge based upon the following schedule: SEWER UTILITY RATE REGIONAl. F,\OLIT1ES COLLECTION TOTAl. & TREII TMENT SYSTEM MONTHLY ClASSIFICATION CHARGE CHARGE CITY CHARGE Residential S 18.70 Per montMmk S5.1S/mon1hfunk S14.9OIunk (Single-Family, Ouplelc, Triplex! Muki-family, Mobile Home Partes S 0.80 Per HCf S .8O/hcf $ 1.2Stbcf (4 or More Unilsl _ii, Commen:lal, LlghllndUSlriaI lNon-Of"oce, Bakeries, Marl<els, '"-, Dry Clea.....) $ 1.1 5 Per HCF $ .4S,tlcf $ l.60111cf _ Repail, Car Wash $ 1.25 Per HCF $.4Stbcf $ 1.7Ohf Oftic:es, MoIels CWIthoul ReslauIants) $ l.llO Per HCf S .4S,tlcf $ 1.4Stbcf ............... Hotels ~ wlIh ReIlaurantsl $ 1.75 Per HCf $ .4Stbcf $ 2.2Ohf ~ $ 0.95 Per HCf $ .4Stbcf $1.4Ohf HoIpllaIs, Convalescenl Homes $ 0.85 Per HCf $ .4Stbcf $ 1.:w.tK:f Schools, 0wId>es, Nuney ~Is, [)aycaIa $ 0.55 Per HCf $ _4Stbcf $l.lll1/11cf Induslry $908331MG $264.22/1.000 LBS BOO lDischaJse Flow) $324.2&11.000 LBS 55 oHCf . 100 CubIc Feet of WIb!.r Usage 7/26/93 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 RI!SOU1l10N Of1lll! Cl1Y Of SAN III!RNARDINO PIXING AND I!STABlSHING CHARGES !'OR SERVICES AND fACLt'lll!S PllRNISIIED BY1lII! Cl1Y SI!WE1lAGE COW!C110N AND 'I1lEA'IldI!NT SYS'I1!M LOCA11!D INSIDE 1lII! INCORI'ORA11!D UIWIORY Of 1lII! Cl1Y; PROVIDING 'IlIAT USERS LOCA11!D OurslDE 1lII! INCORI'ORA11!D 'I1!RIlATORY...... AND REPI!AI.ING RI!SOLUI10N NO. 91-361. by amending this resolution. SECTION 3. The rates established pursuant to Sections 1 and 2 . of this resolution shall be effective SECTION 4. Resolution No. 91-361 is hereby repealed. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting on the held thereof, , 1993, by the day of following ~ote to wit: un KAYES DSTA:!:. ABSBlfT COUNCIL MEMBERS: NEGRETE CURLIN HERNANDEZ OBERHEIMAN OFFICE VACANT POPE-LUDLAM MILLER Rachel Clark , City Clerk The foregoing resolution is hereby approved this day of , 1993. Tom Minor, Mayor city of San Bernardino APPROVED AS TO FORM AND LEGAL CONTENT JAMES F. PENMAN City Attorney By: 7/26/93 '4