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HomeMy WebLinkAbout23-Water Department CITY OF SA.N BERNClDINO - REQUEST FO COUNCIL ACTION From: Bernard C. Kersey Subject: AMEND RESOLUTION NO. 89-510 ENTITLED IN PART "RESOLUTION ... ESTABLISHING A I Dept: ""ater Department FREEZE OF THE SEWER CONNECTION FEE DESIGNATED FOR CONSTRUCTION AND IMPROVE- Date: November 9, 1994 MENTS OF THE WASTEWATER TREATMENT PLANT TO THE RATE IN EFFECT ON OCTOBER 1. 1993. Synopsis. of Previous Council action: , lid 1'\ I!qn,el r.;[ , I.~V St', Ie: 43 ' Recommended motion: Adopt Resolution I :;ontact person: Bernard C. Kersey >upporting data attached: Yes Phone: 384-5091 Ward: All =UNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.! (Acct. DescriPtionl Finance: :ouncil Notes: 5-0262 Ammd::l Itp.m No JJ C'ITy'OF SAN BERNQDINO - REQUEST F~ COUNCIL ACTION STAFF REPORT In 1990, th., Water Depanment contracted with Bartle Wells Associates to prepare a Sewer Financing Plan to O1nd required Wastewater Treatment Plant improvements. The report recommended that the City adopt a sewer connection charge of $3,050 per equivalent dwelling unit (BOll), and increase that charge by 10% per year for five years. The report O1rther recommended that the sewer user charge include a capital charge of $36 per year to pay capital costs of required projects and the debt service on borrowing for the sewer projects. On August 5, 1991, the Common Council amended Resolution No. 89-510 by adopting Resolution No. 91-360 which increased the sewer user and connection charges, effective October I, 1991. Since the original financing plan, there have been a number of changes in the Wastewater Treatment Plant Projects and sewer O1nd finances. 1bese include: The construction bids for the Primary Hydraulic Reliability Project (PHR) and O1ll-scale RIX projects were lower than anticipated The Water Department has received approval from the State Water Recourses Control Board (SWRCB) for a state revolving O1nd loan for the full amount of eligible costs for the RIX Project. The ammonia and nitrate upgrade project can be postponed or eliminated (an estimated cost of over $50 million). Flow to the Wastewater Treatment Plant has decreased postponing the need for future plant expansion. Resolution No. 91-360, effective October 1, 1991, authorized an increase in the sewer connection fees designated for construction and improvements of the Wastewater Treatment Plant. The rates were established on a graduated scale which increased 10%, effective October 1 of each year, with the final increase on October I, 1995. The connections fees are: EFFECI1VE DATE October 1, 1991 October 1, 1992 October I, 1993 October 1, 1994 October 1, 1995 RESIDEN11AL PER DWELLING UNIT $3,080 3,390 3,730 4,100 4,510 NON-RESIDEN11AL PER GALLON PER DAY $10.95 12.05 13.25 14.60 16.05 Since many different changes have taken place since 1991 which have reduced the estimated costs of the required sewer improvements, as pointed out above, the sewer capacity fees will be reviewed and revised. Staff is confident that a revised sewer financing plan will show that the Department can reduce the sewer connection charge and is recommending freezing the sewer connection fees at the amounts in effect as of October 1, 1993. These amounts are $3,730 per dwelling unit, and $13.25 per gallon per day of sewage effluent for non-residential users. The Board of Water Commissioners approved the rate freeze at their October 4, 1994, meeting. It is recommended that the attached Resolution, which amends Resolution 89-510, be adopted. The preliminary financing plan will be completed by January 9, 1995, approximately eighty (80) days from authorization to proceed, with the Final Report delivered by January 31, 1995. The Board of Water Commissioners recommendations for Sewer Connection Fees will be brought to the Mayor and Common Council in February 1995. . ' c ..."."'" ~ 1 2 3 4 5 6 7 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 89-510 ENTITLED IN PART .RESOLUTION .. . ESTABLISHING SEWER CONNECTION AND INSPECTION FEES.... TO AUTHORIZE A FREEZE OF THE SEWER CONNECTION FEE DESIGNATED FOR CONSTRUCTION AND IMPROVEMENTS OF THE WASTEWATER TREATMENT PLANT TO THE RATE IN EFFECT ON OCTOBER 1, 1993. WHEREAS, Article VIII, Section 134 of the City Charter, empowers the Mayor and Common Council to set user charge fees for 8 t:he equitable distribution of all costs associated with the 9 wastewater collection system; and 10 WHEREAS; the current rates set forth in Resolution 89-510 were 11 amended in 1991 by Resolution 91-360 authorizing a 10% increase in 12 rates each year on October 1; and 13 WHEREAS; there have been a number of changes in Wastewater 14 1~reatment Plant construction proj ects and sewer fund finances, 15 i.ncluding lower than anticipated loan interest rates, lower 16 construction costs for the Primary Hydraulic Reliability (PHR) and 17 full-scale Rapid Infiltration Extraction (RIX) projects, and 18 decreased flow to the Wastewater Treatment Plant. 19 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 20 OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 21 SECTION 1. Resolution No. 89-510, Section 1, Subsection C, is 22 amended to read: 23 "C. Sewer connection fees designated for the construction and 24 improvement of the Wastewater Treatment Plant, shall be frozen at 25 the rate in effect on October 1, 1993, as follows: 26 1. Residential - for each single family house and for each 27 dwelling unit in a duplex or triplex the fee shall be $3,730 per 28 dwelling unit. o '"'" "-wI RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 89-510 ENTITLED IN PART 'RESOLUTION ... ESTABLISHING SEWER CONNECTION AND INSPECTION FEES.... 2, Multiple residential and non-residential - for multiple dwellings in excess of three units, mobile home parks, motels, hotels and commercial, institutional and industrial connections, and any other type of connection, the General Manager of the Water from the connection and shall set at a rate of $13.25 per gallon per day of estimated effluent." 9 I HEREBY CERTIFY that the foregoing resolution was duly 10 adopted by the Mayor and Common Council of the City of San 11 12 the 13 14 15 16 Bernardino at a meeting thereof, held on day of , 1994, by the following vote to wit: Council Members: AYES NAYES ABSTAIN ABSENT NEGRETE CURLIN 17 HERNANDEZ 18 OBERHELMAN 19 DEVLIN 20 POPE-LUDLAM 21 MILLER 22 23 24 25 26 27 28 10/11/94 Rachel Clark, City Clerk 2 . . c -- 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 OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 89-510 ENTITLED IN PART 'RESOLUTION ... ESTABLISHING SEWER CONNECTION AND INSPECTION FEES.... The foregoing resolution is hereby approved this day of , 1994. Tom Minor, Mayor City of San Bernardino APPROVED AS TO FORM AND LEGAL CONTENT: JAMES F. PENMAN City Attorney ~)z/n~Jlt../ 10111/94 3