The URL can be used to link to this page

Home My WebLink AboutS02-Water Department ,;0.::<:._-- C.ITV,OF SAN BEQARDINO - REQUESOOR COUNCIL ACTION From: Bernard C. Kersey, General Manager Subject: ACOPT RESOLUTIONS INCREASING SEWER SERVICE CHARGES AND SEWER CAPACITY FEES Dept: Water Department Dlte: July 3, 1991 Synopsis of Previous Council ection: None Recommended motion: Adopt Resolutions ContaCt person: Bernard C. Kersey 3U-5091 Phone: Supporting dlta attaehed: Ves Ward: All FUNDING REQUIREMENTS: Amount: NIA Source: (Acct. No.1 (Acct. Descriotionl Finance: Council NoteS: CJI-~~tJ f/-.!~I Agenda Item No S-;L-- CITY OF SAN BE.&lARDINO - REQUES,oOR COUNCIL ACTION STAFF REPORT The Board of Water Commissioners on May 21, 1991 conducted an extensive workshop on the proposed increases to the sewer service charges as well as the proposed increase to the sewer capacity fees. 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 and the sewer capacity fees. These fees and charges have not been increased since 1984. 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 and sewer capacity fees. staff examined several issues, including proposed new treatment standards, replacement and repair of outdated systems, facilities relocation, increased permitting requirements, debt service, and the establishment of a rate structure that provides equity among all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. Detailed presentation. of these requirements and costs are included in the attached Sewer Rate Study and supporting documents prepared by John Carollo Engineers and Bartle Wells Associates. To comply with discharge standards established by the Regional Water Quality control Board and to ensure reliable operations, a number of capital improvement projects 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 bond sales 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 the discharge standards have mandated construction of complete tertiary treatment and reduction in nitrogen and ammonia levels to protect aquatic life and groundwater quality. The South Coast Air Quality Management District's regulations now require off gas and process gas treatment equipment on most treatment phases at our plant. The cost of solids handling and disposal, regulatory permitting, energy, labor, laboratory testing, and chemicals have escalated by 200 to 300 percent in the past five years. The current total cost to operate, maintain, and repair the San Bernardino Water Reclamation Plant to provide sewage treatment CITY'OF SAN BE.QARDINO - REQUESOOR COUNCIL ACTION STAFF REPORT at a level that meets the existing discharge permit conditions is $1,700 per million gallons or $800 per million gallons excluding the capital related expenses. Additional facilities that are required to meet pending new discharge requirements will cause increased OlM costs above these figures presented. The $800 per million gallon treatment cost does not include the cost expected for required disposal facilities in the existing discharge permit. The sewer service rates provide revenue toward the day-to-day operational and maintenance costs, bond' payments, equipment replacement, and process upgrades. Due to OlM increases and added debt service, total costs since 1984 have increased approximately 167'. Current revenue to costs shows a significant shortfall. Our $7.20 monthly residential-commercial sewer service rate is now the second lowest per month rate among the agencies surveyed, and is not sufficient to cover necessary costs to operate the sewage treatment facility. To balance the budget, sewer rates must be adjusted; an 89' increase to the residential rate will be necessary this year alone. The commercial rate is currently applied to any user other than those defined in the residential category, and is based on actual metered water consumption. The current rate is $0.45/hundred cubic feet (hcf) of water consumed. A new rate structure that addresses equity of cost based on use of facilities is proposed, with a minimum 33' increase. Therefore, the monthlY sewer service rate, which as been in effect since 1984, is proposed to increase from $7.20 per month (single family) to $13.60 and from $0.45/hcf of water used by other user types to a rate structure for commercial, industrial, institutional, and multi-family uses, determined from an analysis of equitable use and benefit. These proposed rates are also based on water usage and range from $0.60/hcf to$1.65/hCf. Industrial dischargers will be charged a rate of $521. 75 per one million gallons of flow plUS excess loading charges, if applicable, of $267.89 per 1,000 pounds of BOD and $394.86 per 1,000 poundS of SS. 2 ~.,:"; '., ~ o o ~*******************************************~ << << << FIN A L << << << << << << << ~ :1. 99:1. SEWER RA'PE STTIDY ~ << << << << << << << << << << << SAN BERNARDINO << ~ MUNICIPAL WATER DEPARTMENT ~ .. 300 NORTH "D" STREET .. ~ SAN BERNARDINO, CALIFORNIA 92418 ~ ~ {714~ 384-5141 << << << << << ~ << ~ ~ ~ ~ ~ ~ << ~ ~ << ~ << ~ ~ << ~ << ~ ~ BERNARD C. KERSEY ~ ~ GENERAL HAN'AGER ~ ~ ~ << << << << << << ~ .TUNE 1991 ~ << << << << << << << << << << << << << << << << << << << << << << << << << << << << ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. !:i - L o o SAIl BDIWlDIJIO MUJlICIPAL WA'fD DIPAll'lMD'l' SnD ItAD S'fUDY JUJII 1991 Introduction The City of San Bernardino operat.s pursuant to the City Charter and is govern.d by an elected Mayor and a sev.n-m.mber Common Council. Th. City operates a sewer collection system through its Department of Public Works. The Municipal Water Departm.nt has provided domestic water service to its customers since 1904, assuring the city of an ample supply of potable water. The Department does not derive any of its revenue from the general or special tax base. In October 1973, the Mayor and Common Council authorized the transfer of the wastewater treatment plant (Water Reclamation Plant) to the Board of Water Commissioners which gov.rns the Department. The Board consists of five members appoint.d to staggered 6-year terms by the Mayor. The Department is directed by the Board and is a s.parate d.partment operated independently of other city functions. The Department has control over water supply and distribution for the city and full management of fiscal responsibilities for the Water R.clamation Plant (OP) and for applicable state and f.deral grants. The Board is empowered to establish and collect water rat.s, to hire employees, and to maintain, operate and expand the WRP as necessary. The Department provides wastewater tr.atm.nt for the city of San Bernardino, East Valley Water Di.trict, the City of Loma Linda, Patton State Hospital, and Jlorton Air Force Base through the operation of the 30 MGD regional water reclamation plant. San Bernardino, Loma Linda and Ea.t Vall.y Water Di.trict each provide separate and independent sewage collection By.t.... Ea.t Valley Water District serves primarilY the City of Highland. The Department also participates, through the Santa Ana Watershed Planning Authority (SAWPA), in a joint powers authority with the City of Colton for completion of a r.gional tertiary wa.t.wat.r treatment demonstration project. Full-scale t.rtiary treatment i. r.quir.d to achi.ve compliance with .xisting discharge permit. issued by th. Stat.. Full-.cale tr.atm.nt will be d.signed in 1992 following demonstration of alternative treatm.nt proc....s. In 1990, the D.partment contract.d with Bartl. W.lls A.sociat.s to pr.pare a S.w.r and Wat.r Financing Plan for the 5-Y.ar Capital Improvement (Mast.r) Plans for both the wat.r and s.wer systems. The capital charges requir.d for th.s. mast.r plann.d proj.cts were us.d to .stablish the Financing Plan. Th. D.partm.nt also contract.d with John Carollo Engineers to pr.par. a R.venue Program, in accordance with us.r charg. requir.m.nts r.sulting from 1 o o the Clean Water Act of 1977 and the Final Regulations of 1982, to establish the sewer rates necessary to generate revenue for the Water Reclamation Plant capital improvement projects. The intent of the Revenue Program, drafted in November 1990 and finalized in June 1991, is to demonstrate and establish equitability of user rates based on the use of the treatment facilities. All new facilities under design, construction, or proposed to achieve compliance with state and federal regulations plus the required financing were evaluated for costs and subsequent revenue requirements. Data from both of these plans are incorporated into this study and referenced as supporting documentation for establishing the proposed sewer service charges and user rates. Analvsis of C&Dital ~xnenditure ReauirementB Recent major changes in the discharge standards have mandated construction of complete tertiary treatment and reduction in nitrogen and ammonia levels to protect aquatic life in the Santa Ana River, and groundwater quality. The South Coast Air Quality Management District's regulations now require off gas and process gas treatment equipment on most treatment phases at the San Bernardino WRP. The cost of solids handling and disposal, regulatory permitting, energy, labor, laboratory testing, and chemicals have escalated by 200 to 300 percent in the past five years. The Air Resources Control Board and the Air Quality Management District require water reclamation plants to do an extensive Air Toxics Hot spots Inventory to determine if there are toxics given off by the various processes at the plant. The Department joined with several treatment plants throughout the state to do pooled emissions testing on certain processes; toxics testing, however, must be done at each facility. This inventory will cost San Bernardino approximately $300,000.00 in the next fiscal year. In September or October 1991, EPA is to publish new regulations on sludge disposal. The Department must evaluate the new regulations and develop a long-term residuals management prograa that could include composting, incineration, or land application. To comply with discharge standards established by the Regional Board and to ensure reliable operations, a nUlllberof capital improvement projects have been undertaken; served additional cost- intensive projects are required to meet new EPA and RWQCB regulations. Projects that have been completed or are under construction include: Solids Handling Facilities - 2 digesters, 2 dissolved air flotation units, methane gas scrubbing, holding and 2 - o o flare, sludge dewatering building, 2 belt presses, and loading facilities. Unit 1 3.5 MGD Secondary Clarifier - New clarifier and pump station for Unit 1 13 MGD facilities. Air Supply Corrective Action - New air supply building, electric motors, engines and blowers to supply air for the biological activated sludge process. Miscellaneous Improvements Project - Rehabilitation of pump stations within the plant to distribute waste activated sludge and various process wastes. "E" Street Pump Station - upgrade and expand the pump station that brings influent into the plant from the south end of the city, the City of Loma Linda, the Auto Plaza, and a portion of "E" Street. Fine Bubble Diffusion Retrofit - Retrofit of all aeration basins in units 1 and 2 from course bubble diffusers to fine bubble diffusers in order to nitrify and help meet ammonia discharge standards. RII Demonstration Project - 2 MGD demonstration project with the City of Colton to demonstrate that rapid infiltration of secondary effluent in spreading basins and then extraction of the water is equivalent to conventional tertiary treatment. Pilot Nitrogen Removal Project - 3 MGD of additional treatment capacity and reduction of total inorganic nitrogen to 10 mg/l and ammonia to 2 mg/l. This project takes the concentrated waste stream of nitrogen and ammonia from the belt press facility. Projects that must be built in order to meet current discharge requirements are as follows: . Full scale Rapid Infiltration/Extraction Facility (RII) or Conventional Tertiary Facility - Facilitie. must be on line by 1995 to meet discharge requirements. San Bernardino's estimated share of the cost is "0 million for RII or "5 million if conventional tertiary. Primary Hydraulic Reliability Project - This project is designed; construction is expected to begin by the end of 1991. It includes rebuilding the headworks of the plant where all influent enters into the treatment process. This project will provide metering structures, flow splitting to the primary clarifier, a septage receiving station, and preaeration to settle out .olids 3 ~.\ o o and debris. This project is necessary to build before any additional unit process can be built. It replaces facilities that were built in 1958. Phase 3A Secondary Project - This project will be required for either treatment plant expansion capacity or to meet more stringent nitrogen and ammonia discharge requirements. The Regional Board has proposed setting nitrogen limits of 10 mg/l on all flows; ammonia must also be reduced from 18 mg/l to 2 mg/l. If the nitrogen limits are established at 10 mg/l, the projects to meet the new standards will be required by 1995. If this project is built to satisfy the revised nitrogen standards, the next increment of secondary expansion must then be built. All of these projects add significantly to the costs of providing sewer treatment; the projects are built with funds raised from bond sales which then require annual debt service. The Sewer Fund Debt service will exceed $7 million per year to fund all of the projects which must be built to satisfY regulatory requirements. An.ivaia of Oneratina and Maint.nanee Coats In the past year, the 3.5 MGD Secondary Expansion, solids Handling Facilities, and the Air Supply Corrective Action projects have been completed. Each of the projects has added reliability to the treatment process which is evidenced by improvements in the quality of discharges from the plant and meeting our HPDES Permit requirements. Chemicals, including chlorine, polymers for sludge dewatering, caustic soda for odor scrubbers, catalysts for reducing hydrogen sulfide, lime and soda ash are a major expense in operating a treatment plant. power, including electricity and natural gas, account for over 10' of the operating costs; personnel operate the plant around the clock every day of the year. Staffing levels have increased slightlY due to the additional processes and equipment that have been added to the plant. This year, the Rapid Infiltration/Extraction Demonstration project, a joint project with colton, was initiated in May. 'the Departaent's portion of the cost for one (1) year of demonstration operation is $418,000.00. Most of the expenses, $300,000.00, is for the laboratory testing that is required by the Regional Board to demonstrate that this process is equivalent to conventional tertiary treatment. Maintenance of the facilities is a critical function. The plant maintenance personnel must maintain over 3,000 pumps, motors, valves, and electrical equipment to ensure proper operation of the plant. The Maintenance Section has an ongoing preventive 4 l!l o o maintenance program and does almost all repair work and fabrication in-house. Solids disposal is one area the Department has successfully reduced costs from two years ago. PreviouslY, the sludge was dewatered and then blended with sawdust and other composting materials to reduce the moisture content to 50' and then disposed of at a landfill. The Department is now able to dispose of sludge directly from the belt press to two composting operations. The majority of the sludge is taken to One-Stop in San Timoteo Canyon and the balance goes to Chino-Corona Farms. The plant operates a certified lab to run daily tests on influent, effluent, and plant process operating data. The current lab facility is inadequate and is scheduled to be relocated into the Blood Bank building within the next 18 months. When the lab is relocated, additional testing equipment that is needed to perform tests for heavy metals, sludge analysis, and trace organics in water and air samples will be acquired. The budgeted operational and capital costs, included in the Revenue Program developed by John Carollo Engineers, for the required facility upgrades are detailed on Table 1. The percentage of the total budget for each of these operational, maintenance, and capital costs is shown on Figure 1 which follows. 5 o o "TABLE 1: SEWER FUND BUDGET" OOST CateSOry (1) FY 1989/90 FY 1990;91 FY 1991/92 --------------------------------------------- ---------- ----------- --------- Treatment Facilities Direct b;penees: ------------------------------------ Plant Operations ,. Maintenance: Salaries $1,344,175 $1,059,251 $1,400,610 Materials ,. Supplies 238,194 264,565 262,343 Power 702,125 1,136,895 1,285,202 Fuel,. wbricants 365,276 367,764 361,710 Chlorine ,. other Chemicals 771,159 835,301 1,096,412 Other 326,835 97,238 195,095 O&H Services by QID 120 0 Outside Labor 100,150 71,820 561,000 Pel'llits ,. fees 62406 319,590 Sludae Processing ,. Hauling 1,208,423 894,689 829,203 Laboratory 222 ,568 307,711 ------ --------- --------- Subtotal Direct b;penees $5,076,337 $5,032,597 $6.618.876 General b;penees: ----------- Tool ,. Iquipaent Maintenance $52,964 $34,366 $89.157 Auto ,. Truck Maintenance 41.455 43,131 52.979 Industrial Waste Inepection 189.823 181,056 222,953 Engineering ,. Special Professional Services 212,622 423.675 470,000 ---- ----------- Subtotal General b;penees $496.864 $682.248 $835,089 Administrative ,. Office Expenees: -------------------------------- Salaries ,. Benefits $1.100,870 946,287 1.144.327 Administrative Services Performed by am 296,809 234,757 350 ,000 Office Supplies. Equipment. Lapl, Audit, Professional Services ,. Miscellaneous 250.590 442.218 400,433 Data Processing 49,000 1,454 22.128 ---- -------- Subtotal Administration ,. Office Ixpenee $1.897 .269 $1.624,716 $1.916,888 Reserves: Operating Reserves $704,722 $838,766 $1,103,146 --- ---. Subtotal O&H ~Ptiated to all Regional Users $7.975.212 $8.178.327 $10,473,999 Capital Related Costs: -------- PSA Rent $536,000 $536,000 $536,000 1986 Bonds 261.850 259 ,950 280,781 Depreciation 1,485.440 1,485,440 1,200.000 Capital Revenue Requirements 1,627 ,000 4,296.392 ------ ----- ------ o o Subtotal Capital Appropriated to all Re,ional Users: $2,283,290 $3,908,390 Total Re,ional San Bernardino Users Only: $10,258,502 $12,086,717 ------------------------- Sewer Line Construction and Maintenance (1) BillinB and Collection Expense (2) $854,453 63,000 $1,154,763 63,000 Total appropriated to San Bernardino Users only $917,453 $1,217,763 ------------------------------------------------------------------------------- (1) Bud,et information provided by the City's Water Department. (2) Allocated to San Bernardino ueere only. Coete ueociated with the collection &yetem are DIOetly attributed to O&M ve capital coete. ., $6,313,173 $16,787,172 $1,154,783 63,000 $1,217,763 $18,004,955 ,- o o :::E '" E- '" ",-, >- -'''- '" <"- z -;:> 0<0 c:"'.... -'" '" '" E- '" ~u u'" ",,,, ,-.. :::E~ -'> Cfl -,c: E-< ~ 0'" 0-. U'" U-l '-" '" c: 0 E-< oll U) Co: Oz U-lE-< UO ~z 0:; ~::; Z-4 ~ -40-. ~z -' '" ~ <(z Z ~ ~O Co:~ z~oo U-l <JJ o - u~~ ",'" ~ ~~o- 0-." c: ::J z "- OU) '" "- -,'" Cl :::JzO: ZU-l 4:'" H z<(>- Oz c:'" ",zoo fl:4 -4 z~ OU~ ~U-l U ~O-. ~"- "'>< ZU-l l.D", zX >< ~Co: E-"'.... o Co: <(U-l zg::'" Co:U-l :::E_ -4-4 E-O <(E-< U~ c: ~~ E- U-l0 U-l Co:E-< Q:l Co: U-l Z ~ E- '" <( ~ 0 tr.l U - "- ... 4: ... - "- u .; dS>< oll~ tl '" ;:;;u~ '" &:> '" .. c... > 0; <... g:: I 0 - '" ... '" .. '" .. ., g:: '? co 0 8 o o currAnt and Future Canacitv Table 2 shows Sewer Revenue Units (SRU'S) as of July 1, 1990. The Department has determined that between July 1989 and June 1990 a total of 1,915 sewer capacity rights were assigned -- approximately 65 more than the annual full-growth assumption used in the Financing Plan. Completion of capital projects included in the Financing Plan will result in a design capacity of 48 KGD or approximately 37,500 SRU's. The Department has prepared an analysis of future capacity basin on various reports to determine projected wastewater flows from the entire service are. This analysis (prepared in February 1989) projected a total wastewater flow of 51.7 KGD at buildout. No evaluation was made as to the rate of growth. Included in this flow is approximatelY 2.6 KGD from unincorporated areas within the sphere of influence of the cities of San Bernardino and Loma Linda. TABLE 2 CITY OF SAN BERNARDINO SEWER UTILITY SEWER REVENUE UNITS San Bernardino service area Loma Linda service area East Valley Water District Totals 7/1/901 55,720 6,908 25.980 88,608 ANNUAL GROWTH 80' GROWTH 1,0002 1253 7253 1,850 800 100 580 1,480 1 _ From table 1 of Financing Plan 2 _ Based on growth analysis; see text of Financing Plan 3 _ Estimated by Bartle Wells Associates based on population history. connection Charaes The existing connection charge designed for improvement of the wastewater treatment plant is $2,260, effective January 1, 1989, for residential units. The current fee is the result of a fee structure adopted in 1984 which increased annually for five yeara in recognition of escalation in construction costs as well as the future coat of aoney. Theae fees are based on the allocated costs of plant expansion directly related to growth (i.e. a capacity charge) . Corresponding fees were also set for commercial and industrial users on the basis of volume of daily effluent flow; the current rate is $8.0S/gallon. Based on the slow-growth scenario identified in the Financing Plan and the capital improvements required to support new growth, the following table indicates a S-year schedule proposed for connection 9 o o (capacity) charges for 1991-95: MULTIPLE AlfD CONNECTION CHARGE RESIDENTIAL NONRESIDENTIAL Effective 10/1/91 $3,080/unit $10.95/gallon Effective 10/1/92 3,390/unit 12.05/gallon Effective 10/1/93 3,730/unit 13. 25/gallon Effective 10/1/94 4,100/unit 14.60/gallon Effective 10/1/95 4,510/unit 16.05/gallon DeveloDment of Rate Structure The Revenue Program discusses the step-by-step procedure used to develop the proposed user rate structure. An extensive sampling program was performed by City staff in 1988 to identify users and their respective wastewater strengths. Based on this sampling, ten user groups were identified: residential, mUlti-family-mobile homes, retail_commercial-light-industrial, auto repair-carwash, offices-motels, restaurants-hotels, laundromats, hospitals- convalescent homes, schools-churches-nurseries and industry. The industrial group contains monitored users which have varying strength characteristics based on sampling and are listed separately. Individual contracts will be prepared/amended between the Department and these users to ensure their charges reflect equity based upon their impact to the system from excessive strengths of BOD and or Suspended Solids. Sewage flows for each nonresidential user were estimated based on water use records and discounted allowing for landscaping water and consumptive use not entering the sewer. Residential user sewage flows are based on water consumption of 281 gallons per day, per household, while multi-family and mobile homes users sewage flows are based on 190 gallons, per day, per household. The process used to develop the proposed rates is consistent with Federal regulations and State guidelines. These regulation and guidelines mandate that rates are equitablY based on use of the facilities. Rates then are based on a user's shared loading to the facilities. This use is based on a discounted metered water flow and solids loadings consisting of BOD and Suspended Solids (SS). The Revenue Plan and proposed rate structure will assist the Department in planning for rates which will recover costs associated with operating and maintaining the new facilities. The City always has the option to change the rates, but must continue to assure that the rate structure recovers expenses from users based on use of the facilities. Based on budget information from the City of San Bernardino Public Works Department, the local collection system portion of the residential rate will remain unchanged. Below are the current rates for the two user types identified in the current rate structure. 10 o o TABLE 3 CITY OF SAR BERNARDINO CURRENT SEWER UTILITY RATES AI(]) CHARGES REGIONAL FACILITY & COLLECTION TOTAL TREATMENT SYSTEM CITY CHARGE CHUGI: CHARGE User Charges (per month) Within City: Residential $6.05 $1.15 $ 7.20 Commercial (hcf) 0.37 0.08 0.45 Outside City: Residential 6.05 4.95 11.00 Commercial (hcf) 0.37 0.33 0.70 Individual industrial dischargers have contracts with the Department in which surcharges for excess loadings are identified for each user. Tables 4 and 5 that follow are the proposed rates and new rate structure for both inside and outside city users. These rates are proposed to be in effect for FY 1991-92. TABLE 4 ~ n 1'91-'2 IDIID lIULIft lAD IIIDl1 ern IIGllllAL 'AClLI!lD . ftIA!IIIft l"IIa..- ......... I!TPY ......... CllLLICUU. IYI!III !ODL ....., ,., a_UyeaftlW -~ (lin!Ile-'uil.,. Dupla. hiplal . 12.45 per _/WIi~ 11.15/_/WIi~ '13.IO/Wli~ IIll1U-,uilr. IIob1le _ farIl8 (4 ow 110.. VlIltal . 0.15 per bel Jeta11. ( "c1a1. LlIbt ~trial (__fl_. .....u.. ~. __. Dq ~l . 1.00 per bel _ JIIpair. CU _ . 1.10 per bel Offl..... IlDtele (V1_ ___I ao.p1ta1e. CanYal- ~U1t - . 1.n per bel . 0.71 per bel . 0.15 per bel . .10!bef . 0.7S!bef . .10!bef . 1.1O!bef . .10!bef . 1.20!bef . .10!bef . 1.00!bef . .10!bef . 1.1'!bef . .10!bef . O,"!bef . .10!bef . 0.7I!bef . .to per bel ___. JlDte1e (llDtelJJlDte1e V1tb __-I IoMDInIUta 11 o 1"'1 a_IWleI.'P'1W IIG1m1llL 'ACILUID . 'IID!IIIII! ,....,.. _la. __. Ihar"ry _lalDay - -try . 0.10 per IIc:f *'21.75/. (D1.-.e .loVI *HC:r . 100 ClIIIlc feet of ....tar - TABLE 5 PIlllPOBID rY 1"1-'2 UIID Il!lLrI'Y Mft llUftlDl el" 1"'1 ....,..tl:&u.. IIGlmlllL .ACILlnD . 'IID!IIIII! ""'..,.. -~ (tin!l1a-.ai1y. Jlup1M. ft1p1all1 . 12..I/..ntb/unit *l\1-...11y. JIobj.la _ Pub (' or lIOn 1Iftital . 0.65 per IIc:f _.11. ~a1. Lilht ~Uia1 (lIcln-Ofu... .....1... JIarkeU. _UN. Dry a-ral . 1.00 per IIc:f Auto a.pa1r. car V_ . 1.10 per IIc:f OfU_. _la (V1_ ___I . .'0 per IIc:f --.. _la (_l~la Vlt11 ___I . 1.55 per - ~ta . 0.71 per IIc:f IIoIIpl'tala. CWav 11.- .:...~ ~ . 0.65 per - _la. _. IharMfY _lalDay - . 0.10 per _ l~ 1521.15/IIG (m.-.. .loV) tII:r . 100 ClIIIlC feet of -- - o CllLLICUC* IYftIIl _AL --.y etft' ,.,.... 1"11&_ . .10/1lc:f . O..O/llCf 1261 . "/1. 000 1.11. IClD '3"."/1.000 LIB. II CllLLBC!XC* IYftIIl _AL --.y ,...,.... etft ,.a.1WIII: ".'I/..ntb/unit '11.40/unit . .45/11Cf . 1.10/llCf . .45/11Cf . 1.'lI/11c:f . . 45 /IIc:f . 1.55/11c:f . .45/11Cf . 1.35/11c:f . . 45 /IIc:f . 2. 00 /IIc:f . . 45 /IIc:f . 1.20/llc:f . . 45 /IIc:f . 1.10/llc:f . . .1I/11Cf . O."/IICf '.'."/1.000 10II. IClD 1314.16/1.000 10II. II During preparation of the sewer rate study, staff contacted all surrounding agencies that provide wastewater treatment and/or sewer service. Attachment "A" shows the most recent data available for sewer service rates of surrounding communities. San Bernardino's proposed single family residential rate would be the second highest for mid 1991. 12 o o Most of the representatives interviewed indicated that their respective agencies have adopted pOlicies of adjusting rates annuallY based on approved budget requirements. Conclusions BPA grant conditions and State guidelines require a user charge system be adopted which demonstrates fair and equitable charges to all system users. The 1990 Revenue Plan developed for the Department updates the sewer service rates to include the latest collection system costs, regional operation and maintenance (O&M) costs for fiscal year (FY) 1990-91 and anticipated additional debt service. Due to O&M increases and added debt service, the total budget (operating costs) has increased approximatelY 225 percent since the sewer service rates were last adjusted in 1983. To balance the budget, sewer service rates need to be adjusted accordingly. The net result is that residential sewer rates (single family, duplex, and triplex) would be increased nearly 89' for FY 1990-91- APproximately one-third of the proposed rate increase is attributed to the proposed added debt service associated with the Primary Hydraulic Rehabilitation and the Phase 3A Secondary projects' lease financing. The balance of the increase translates to an average annual increase of approximately five percent per year for inflation (since the last sewer service rate increased in October 1983) . The current costs associated with improvement of the treatment plant that are recovered from the sewer connection and capacity fees have increased annually in recognition of the inflationary costs associated with construction. The charges for these costs were increased 10' annually from 1984 to 1989. A 5-year schedule of connection fees is proposed for the period 1991-95. Based on these findings, it is recommended that the Board of Water Commissioners authorize the General Manager to request that the Mayor and Common Council set a public hearing to consider adoption of these revised rates. It is also recommended that the Department and the City evaluate sewer service rates annually in order to minimize the future impact of required rate adjustments to the rate payer. 13 o 0 ATTAC:IoIM.ENT nAn COMPAlllaOIl or so BRR.nDtIlO I S CDRRI9I'I' All]) PIlOPOSBD MOlft'HLY SnD aDVICE CHAllGES WI'rIl stJRllOUllDIIIG AGDCIES The individual allency cost to treat residential and commercial sewage varies depending upon the age of the plant, types of treatment processes used, size of the treatment facility, strength of sewage, the discharge standards mandated ~y state and federal re9Ulatory agencies, and whether grant funds were used to construct the facility. Listed on the attached Comparison of Sewer Rates, Ta~le A, are the current residential and various commercial sewer service rates for local agencies within the Santa Ana region. Several of the agencies surveyed are in the process of updating their rates due to the capital and operational cost increases associated with meeting discharge requirements. Currently, of the cities listed on Table A, Rialto, Riverside, Redlands, and Colton are planning increases ranging between 10' and 60' by year end. Recent major changes in water quality standards have mandated construction of complete tertiary treatment and reduction in nitrogen and ..onia levels for all wastewater treatment plants that discharge reclaimed water to the Santa Ana River, to protect aquatic life and groundwater quality. Addi tionally, the South Coast Air Quality Kanagement District's re9Ulations now require off gas and process gas treatment equipment on most treatment phases. The cost of solids handling and disposal, re9Ulatory permitting, energy, labor, laboratory testing, and chemicals have escalated an estimated 200 to 300 percent in the past five years. The Cities of Redlands' and Colton's sewer service charges are currently higher than San Bernardino I s current rate. Redlands charges '9.00 per month per residential unit, and '1.07 per one hundred c~ic feet of water usage for general commercial customers. Redlands still has a comparatively lower treatment cost because they do not discharge their reclaimed water directly to the Santa Ana River. The City of Colton's current rate is '8.25 per month for residen- tial users, and '0.39 per one hundred c~ic feet of water usage, plus an '8.25 minimum charge for all other users. The City provides for senior citizens to apply for an 18' lower rate ('6.80). The determination is ~ased on age, flow, and financial status. The City of Colton will have to amend their policy of discounts since they have received low interest loan funds from the State Water Resources Control Board. The City of Rialto's sewer service charge is '8.61 per month per residential unit, and '1.'0 per one hundred cubic feet of water usage for non-residential customers with a minimum charge of '8.61 per month. u 1 2 3 RESOLUTION OF THE CITY OF SAN BERNARDINO FIXING AND 4: ESTABLISHING CHARGES FOR SERVICES AND FACILITIES FURNISHED BY THE CITY SEWERAGE COLLECTION AND TREATMENT SYSTEM LOCATED INSIDE THE 5 INCORPORATED TERRITORY OF THE CITY; PROVIDING THAT USERS LOCATED OUTSIDE THE INCORPORATED TERRITORY OF THE CITY MAY RECEIVE SEWER 6 SERVICES; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO EXECUTE AGREEMENTS FOR USERS LOCATED OUTSIDE THE INCORPORATED 7 TERRITORY OF THE CITY SUBJECT TO CERTAIN TERMS AND CONDITIONS; AND AMENDING RESOLUTION NO. 83-279. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24: 25 26 o o RESOLUTION NO. q/-~(,I BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Users Located within the IncorDorated Territorv of the City. 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: 27 28 _ IIUlity Jate IlIGIOML rACILI'rIU ~IllIl '!OrAL . _!111ft IUftIl JIDII'IIlLY ,., a..rn,.-'.ft~ 1"11&'" "....,. e'fll'Y ........,. ~ IliDII1e-r_ly, IlIIPlU, ftip1ell) . 12.45 .. _/unit '1. 15/_/unit ,13.IO/unit IIult1-rMily, _18 - ....... 14 or IIIln _1:8) . 0.15 ..r IICI' . .10/bCf . O.75Jbc' _1. ~. Llgbt I_trial IIclfto-OfUClll. _1_, 1IarU1:8. _t~. Dry c_ra) . 1.00 ..r IICI' . .10/bCf . 1.10/bCf Auto ..,.u. car 1laM . 1.10 ..r HCr . .101"'" . 1.20Jbc' OfU..... _18 (V1_ _tellrenta) . .90 .. IlC1' . .10Jbc' . 1.00/bCf _tellrenta. _18 l_l~18 V1t1l _tellrenta) . 1.55 ..r IlC1' . .10/bCf . 1.65/bCf LaIIndrClII&1:8 . 0.75 ..r IlC1' . .10/"'" . O.l5/hcf _.11:a1a. CClIIYa1..-.t - . 0.15 ..r IlC1' . .10/"'" . O.75/hC' RESOLUTION FI~ AND ESTABLISHING CHARGES FOR~~CES AND FACILITIES FURNIS ' BY THE CITY Sl!\JAGE COLLECTION AND TREATMENT VEM FOR USERS LOCATED BOTH IN- SIDE AND OUTSIDE THE INCORPORATED CITY LIMITS. 1 2 3 _la. a........ .......ry _la/Jl&_ ~ 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ,., ._I"ICA"I~ UGIClIIAL 'ACILI!IIB .-- .......... CDLLBC'IIOI IYftIII .......INB' !OrAL -y t!Yft' ...... DftW 1 0.50"r IICf 1 .10""'f 1 0.60/bef IrIdUatry 1521.75/IIG (Di.-,. 'loW) 1267.'9/1,000 LBI. laD 1394.16/1.000 LBI. II tlI\Cf . 100 .....ic f.t of - - Charges for industrial dischargers shall be computed based upon actual sewage flows, as metered and/or sampled on at least a quarterly basis, and the total volume of Suspended Solids (SS) and Biological Oxygen Demand (BOD) in the flow. Residential dischargers, for the purpose of this resolution, shall be any single family dwelling unit, any duplex or triplex family dwelling unit. Charges shall be computed monthly on a per unit basis. parks, non- multiple family, mobile home Charges for residential and non-industrial 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 19 may be reduced for the purpose of establishing sewer service 20 charges subject to "seasonal" or "consumptive" use as recognized 21 and approved by the Board of Water Commissioners of the City of San 22 Bernardino. 23 SECTION 2. Users Located Outside the IncorDorated Territorv 24 of the City. 25 (a) A policy is hereby adopted of providing sewer services 26 to users located outside the incorporated territory of the City of 27 San Bernardino. The City's Director of Public Works/City Engineer 28 is hereby authorized and directed to execute on behalf of said -2- 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 F~AND ESTABLISHING CHARGES FOR SERVICES ANi) ~AL.lL.u.l~" tutuu" . BY THE CITY S GE COLLECTION AND TREATMENT OEM FOR USERS LOCATED BOTH IN- SIDE AND OUTSI THE INCORPORATED CITY LIMITS. City, subject to approval of the Board of Water Commissioners, and the Mayor and Common Council standard form agreement approved as to form by the City Attorney and containing the minimum terms and conditions hereinafter set forth, with any prospective users of sewer services and owners of real property to receive sewer services extended to premises located outside the corporate limits of said City. (b) Said agreement shall require that the user and owner shall pay the applicable sewer connection fee or fees and shall pay each month the applicable sewer service charge or charges as may from time to time be established. As of September 1, 1991, the sewer service charges applicable are the following: _~ IIUuty late IBGlllUL rAClLBIII .-- ClILL.c!J~ ~ '!O!AL ~y ........ l!Tft' ,.....,. ,., a..Ynt2ft~ ,...... _idMUal I__leo_ly. Dup:la. ftip:lal I i2.45/..ntb/unit 14.t5/..ntb/unit 117.40/unit IlII1ti-'Mily. _111 __ 14 or ...... lIlIiU 1 I 0.65.... IlCJ _1. -..cial. Light _ial I_fl.. _u.. -. _u.. Dry C1IIMM'81 I 1. 00 ..~ IlCJ Auto a.pai~. car Vult I 1.10.... IlCJ I .45/bCf I 1.10/1Ief I .45/11ef I 1.45/IICf I .4S/llCf I 1.1I/bCf I .4I/11ef I 1.35/bCf I . 45/11ef I 2.00/lIef I .4S/11ef I 1.20/lIef I . 45/IICf I 1.10/lIef I .4S/bCf I O.t5/IICf Offi..... _111 IVi_ ___I I . to .... IlCJ ---.~ 1_1/_111 Vith ---I ~U I 1.55"~ IlCJ I 0.71.... IICJ I 0.65.... IlCJ JlaapiU1ll. CClnYalMcent - __111. __. -~ __1II/1layclU'U ~ I 0.50.... IlCJ 1121.7I/IIG lDi~ '1""> 1267 .It /1. 000 loBI. IIllD 13t4.1'/1.000 loBI. II ltIICI' . 100 _C _ of ...U~ _ Rates for users other than "residential" or "industrial" shall be computed on the basis of actual water consumption as reflected -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 ESOLUTION FIX~AND ESTABLISHING CHARGES FOR SERV1CJ;:, Al'lll ~"v.l.J..oU.l."" . u.u.~_.~ Y THE CITY S GE COLLECTION AND TREATMENT OEM FOR USERS LOCATED BOTH IN- IDE AND OUTSI THE INCORPORATED CITY LIMITS. ' by water meter readings for the billing period, provided that billings based on seasonal or consumptive uses as specified in Section 1, may be adjusted as provided for in Section 1. (c) City shall have the right to terminate such services by giving a ninety (90) day notice in writing to the user; that said user and owner shall be subject to any increase in said fee or fees, charges and amounts, which may be imposed from time to time by amending this resolution. (d) The authority delegated to the City's Director of Public Works/City Engineer under this resolution is limited to the express terms and conditions herein set forth and any agreement which is not executed in strict compliance herewith shall be void and shall not be binding upon the City of San Bernardino and its legislative body. SECTION 3. The rates established pursuant to Sections 1 and 2 of this resolution shall be effective September 1, 1991. SECTION 4. Resolution No. 83-279 is hereby amended. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Hayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 1991, by the following vote to wit: / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / -4- SOLUTION FIX1"'\ AND ESTABLISHING CHARGES FOR ;;.q~ICES AND FACILITIES FURNISHED Y THE CITY sE\JAGE COLLECTION AND TREATMENT VEM FOR USERS LOCATED BOTH IN- IDE AND OUTSIDE THE INCORPORATED CITY LIMITS. 1 2 Council Members: AID BAD ABSTAIN 3 ESTRADA . 5 6 7 8 9 10 11 12 13 U 15 of 16 17 18 19 20 21 22 23 24: 25 26 27 28 REILLY HERNANDEZ MAUDSLEY MINOR POPE-LUDLAM MILLER CITY CLERK The foregoing resolution is hereby approved this day , 1991. W.R. HOLCOMB, MAYOR City of San Bernardino APPROVED AS TO FORM AND LEGAL CONTENT: JAMES F. PENMAN City Attorney ') /. . J c:;:.............. -5-