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HomeMy WebLinkAbout40- Water Department CITY OF SAN BERKARDINO - REQUEST JR COUNCIL ACTION From: Bernard C. Kersey Subject: Hearing on Sewer Rate Increases General Manager Dept: Water Department Date: August 26, 1993 Synopsis of Previous Council action: August 16, 1993 -- Mayor and Common Council Set a Public Hearing for Sewer Rate Increases for September 7, 1993 at 10:00 a.m. , at the regularly scheduled council meeting. Recommended motion: Adopt Resolution Signature Contact person: Bernard C. Kersey Phone: 5091 Supporting data attached: Yes Ward: All FUNDING REQUIREMENTS: Amount: N/A Source: (Acct No.) (Acct Description) Finance: Council Notes: A1. (-,l CITY OF SAN BERNA' �IDINO - REQUEST F' R 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 significantly 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 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 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 Commercial 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 proposed 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 request the Mayor and Common Council to adopt the Resolution fixing and establishing charges for services and facilities furnished by the City Sewerage Collection and Treatment System located inside and outside the incorporated territory of the City. D 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO FIXING AND ESTABLISHING CHARGES FOR SERVICES AND FACILITIES FURNISHED BY THE 3 CITY SEWERAGE COLLECTION AND TREATMENT SYSTEM LOCATED INSIDE THE INCORPORATED TERRITORY OF THE CITY; PROVIDING THAT USERS LOCATED 4 OUTSIDE THE INCORPORATED TERRITORY OF THE CITY MAY RECEIVE SEWER SERVICES; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO 5 EXECUTE AGREEMENTS FOR USERS LOCATED OUTSIDE THE INCORPORATED TERRITORY OF THE CITY SUBJECT TO CERTAIN TERMS AND CONDITIONS; AND 6 REPEALING RESOLUTION NO. 91-361. 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 9 SECTION 1. Users Located Within the Incorporated Territory of the 10 city. Pursuant to the provisions of Sections 13. 16.020 and 11 13 .32. 180 of the San Bernardino Municipal Code, any premises 12 located within the incorporated territory of the City which are 13 served by a connection to the system of sewage and waste treatment 14 of the City or are within 200 feet of, or are situated on real 15 property adjoining an existing sewer system and not connected 16 thereto, shall be charged and the owner thereof shall pay a sewer 17 service charge based upon the following schedule: 18 SEWER UTILITY RATE 19 REGIONAL FACILITIES COLLECTION TOTAL 20 &TREATMENT SYSTEM MONTHLY CLASSIFICATION CHARGE CHARGE CITY CHARGE 21 Residential $ 13.55 per month/unit 51.35/month/unit 514.90/unit (Single-Family, Duplex,Triplex) 22 Multi-Family,Mobile Home Parks $0.80/hcf $ .15/hcf $0.95/hcf 23 (4 or More Units) GJ Retail,Commercial, Light Industrial 24 (Non-Office, Bakeries,Markets, Theaters,Dry Cleaners) $ 1.15/hcf $ .15/hcf $ 1.30/hcf 25 Auto Repair,Car Wash $ 1.25/hcf $ .15/hcf $ 1.40/hcf 26 Offices,Motels (Without Restaurants) $ 1.00/hcf $ .15/hcf $ 1.15/hcf 27 28 8/17/93 1 RESOLUTION OF THE CIT, ...F SAN BERNARDINO FIXING AND ESTABLISHING CHt-6ES 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....AND REPEALING RESOLUTION NO.91-361. 1 Restaurants, Hotels (Hotels/Motels with Restaurants) S 1.75/hcf $ .15/hcf $ 1.90/hcf 2 Laundromats $0.95/hcf $ .15/hcf $ 1.10/hcf 3 Hospitals,Convalescent Homes $0.85/hcf $ .15/hcf $ 1.00/hcf 4 Schools,Churches, Nursey Schools, Daycares $0.55/hcf $ .15/hcf $0.70/hcf 5 Industry $908.33/MG $264.22/1,000 LBS BOD 6 (Discharge Flow) $324.28/1,000 LBS SS HCF= 100 Cubic Feet of Water Usage 7 8 Industries with excess strength discharge shall also be charged 9 a surcharge for discharges in excess of 300 mg/l of Biological 10 Oxygen Demand and Suspended Solids as established by resolution of 11 the Board of Water Commissioners. 12 Commercial dischargers, for the purpose of this resolution shall 13 include all dischargers and all premises obligated to pay sewer 14 service charges under this resolution other than residential 15 dischargers. 16 Charges for commercial dischargers shall be computed based upon 17 actual water consumption as reflected by water meter readings for 18 the billing period. Billings based on such water consumption may 19 be reduced for the purpose of establishing sewer service charges 20 subject to "seasonal" or "consumptive" use as recognized and 21 approved by the Board of Water Commissioners of the City of San 22 Bernardino. 23 Residential dischargers, for the purpose of this resolution, 24 shall be any single family dwelling unit, any duplex or triplex 25 family dwelling unit not requiring a City license for occupancy and 26 operation. 27 SECTION 2. Users Located Outside the Incorporated Territory of 28 the City. 8/17/93 2 RESOLUTION OF THE C. OF SAN BERNARDINO FDCNG AND ESTABLISHING(,._.RGES 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....AND REPEALING RESOLUTION NO.91-361. 1 (a) Any premises located outside the incorporated territory of 2 the City which are served by a connection to the system of sewage 3 and waste treatment of the City shall be charged and the owner 4 thereof shall pay a sewer service charge based upon the following 5 schedule: SEWER UTILITY RATE 6 REGIONAL FACILITIES COLLECTION TOTAL &TREATMENT SYSTEM MONTHLY 7 CLASSIFICATION CHARGE CHARGE CITY CHARGE 8 Residential $ 13.55/month/unit $1.35/month/unit $14.90/unit (Single-family, Duplex,Triplex) 9 Multi-Family,Mobile Home Parks $0.80/hcf $ .15/hcf $ .95/hcf (4 or More Units) 10 Retail,Commercial, Light Industrial (Non-Ofice, Bakeries, Markets, 11 Theatres, Dry Cleaners) $ 1.15/hcf $ .15/hcf $ 1.30/hcf 12 Auto Repair,Car Wash $ 1.25/hcf $ .15/hcf $ 1.40/hcf Offices,Motels 13 (Without Restaurants) $ 1.00/hcf $ .15/hcf $ 1.15/hcf 14 Restaurants, Hotels (Hotels/Motels with Restaurants) $ 1.75/hcf $ .15/hcf $ 1.90/hcf 15 Laundromats S 0.95/hcf $ .15/hcf $ 1.10/hcf 16 Hospitals,Convalescent Homes $0.85/hcf $ .15/hcf $ 1.00/hcf 17 Schools,Churches, Nursey Schools, Daycares $0.55/hcf $ .15/hcf $ .70/hcf 18 Industry $908.33/MG $264.22/1,000 LBS BOD 19 (Discharge Flow) $324.28/1,000 LBS SS •HCF = 100 Cubic Feet of Water Usage 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. 27 (c) Said user and owner shall be subject to any increase in said 28 fee or fees, charges and amounts, which may be imposed from time to 8/17/93 3 I RESOLUTION OF THE CITY OF SAN BERNARDINO FUCNG AND ESTABLISHING CHARGES FOR SERVICES AND FACILITIES FURNISHED BY THE CITY SEWERAGE COLLECTION AND TREATMENT SYSTEM LOCATED INSIDE THE INCORPORATED TERRITORY OF THE CITY; 2 PROVIDING THAT USERS LOCATED OUTSIDE THE INCORPORATED TERRITORY....AND REPEALING RESOLUTION NO.91-361. 3 time by amending this resolution. 4 SECTION 3 . The rates established pursuant to Sections 1 and 2 5 of this resolution shall be effective 6 SECTION 4 . Resolution No. 91-361 is hereby repealed. 7 I HEREBY CERTIFY that the foregoing resolution was duly adopted 8 by the Mayor and Common Council of the City of San Bernardino at a 9 meeting thereof, held on the 10 day of , 1993, by the 11 following vote to wit: 12 COUNCIL MEMBERS: AYES NAYES ABSTAIN ABSENT 13 NEGRETE 14 CURLIN 15 HERNANDEZ 16 OBERHELMAN 17 OFFICE VACANT 18 POPE-LUDLAM 19 MILLER 20 21 Rachel Clark , City Clerk 22 The foregoing resolution is hereby approved this day of 23 , 1993 . 24 Tom Minor, Mayor 25 City of San Bernardino 26 APPROVED AS TO FORM AND LEGAL CONTENT 27 JAMES F. PENMAN 28 City At orney By: 8/1 3 4 1993 SEWER RATE STUDY SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 300 NORTH D STREET SAN BERNARDINO, CALIFORNIA 92418 (909) 384-5141 BERNARD C. KERSEY GENERAL MANAGER JUNE 1993 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT SEWER RATE STUDY JUNE 1993 Introduction The City of San Bernardino operates pursuant to the City Charter and is governed by an elected Mayor and a seven-member Common Council. The City operates a sewer collection system through its Department of Public Works. The Municipal Water Department 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 governs the Department. The Board consists of five members appointed to staggered 6-year terms by the Mayor. The Department is directed by the Board and is a separate department 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 Reclamation Plant (WRP) and for applicable state and federal grants. The Board is empowered to establish and collect water rates, to hire employees, and to maintain and operate and expand the WRP as necessary. The Department provides wastewater treatment for the City of San Bernardino, East Valley Water District, the City of Loma linda, Patton State Hospital, and Norton Air Force Base through the operation of the 30 MGD regional water reclamation plant. San Bernardino, Loma Linda, and East Valley Water District each provide separate and independent sewage collection systems. East Valley Water District serves primarily the City of Highland. The Department also participates, through the Santa Ana Watershed Project Authority (SAWPA) , in a joint powers authority with the City of Colton for completion of a regional tertiary wastewater treatment demonstration project. Full-scale tertiary treatment is required to achieve compliance with existing discharge permits issued by the State. In 1990, the Department contracted with Bartle Wells Associates to prepare a Sewer and Water Financing Plan for the 5-year Capital Improvement (Master) Plans for both the water and sewer systems. The capital charges required for these master planned projects were used to establish the Financing Plan. The Department prepared a Revenue Program, in accordance with user charge requirements resulting from the Clean Water Act of 1977 and the Final 2 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 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 and user rates. Analysis of Capital Expenditure Requirements Recent major changes in the discharge standards have mandated construction of complete tertiary treatment and reduction in nitrogen and ammonia levels to protect public health and 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, was done at each facility. To comply with discharge standards established by the Regional Board and to ensure reliable operations, a number of capital improvement projects have been undertaken. In addition, several cost-intensive projects are required to meet new Environmental Protection Agency (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 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. 3 Air Supply Corrective Action - New air supply building, electric motors, engines and blowers to supply air for the biological activated sludge process. Miscellaneous Improvements Projects - Rehabilitation of pump stations within the plant to distribute waste activated sludge and various process wastes. "E" Street Pump Station - Upgraded and expanded 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. 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/1. 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 (RIX) or Conventional Tertiary Facility - Facilities must be on line by 1995 to meet discharge requirements. San Bernardino's estimated share of the cost is $40 million for RIX. Primary Hydraulic Reliability Project - This project is under construction. 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 solids 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 set nitrogen limits of 10 mg/l on all flows in the upper reaches of the river; ammonia must also be reduced from 18 mg/1 to approximately 2 mg/1. If this project is built to satisfy revised nitrogen standards, the next increment of 4 secondary expansion must then be built. This project is now on hold. All of these projects add significantly to the costs of providing sewer treatment since 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 these projects which must be built to satisfy regulatory requirements. Analysis of Operating and Maintenance Costs In 1991, the 3 . 5 MGD Secondary Expansion, Solids Handling Facilities, and the Air Supply Corrective Action projects were completed, and in 1993 the E Street Pump Station was substantially 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 NPDES Permit requirements. Chemicals, including chlorine, polymers for sludge dewatering caustic soda for odor scrubbers, catalysts for reducing hydrogen sulfide, lime and soda ash represent 6% of the operating costs. Power, including electricity and natural gas, account for 14% of the operating costs. Personnel to operate the plant around the clock every day of the year continue to be a major expense in operating a treatment plant. Staffing levels have increased slightly due to the additional processes and equipment that have been added to the plant, as well as maintaining levels of certified staff for 24 hour operations. 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 maintenance program and does almost all repair work and fabrication in-house. Solids disposal is one area the Department has successfully reduced costs. 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 disposing 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 on the Coachella Valley. The plant operates a certified lab to run daily tests on influent, effluent, and plant process operating data. It runs tests for heavy metals, sludge analysis and trace organics in water and air samples. 5 The budgeted operational and capital costs, included in the Revenue Program 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. The Revenue Program discussed 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 classifications 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 are 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 are 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 home users sewage flows are based on 190 gallons per day per household. The process used to develop the proposed 93-94 rates is consistent with Federal regulations .and State guidelines. These regulations 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 estimated sewage flows and solids loadings consisting of BOD and Suspended Solids (SS) . The Revenue Plan and proposed 93-94 rate structure will assist the Department in planning for rates which will recover costs associated with operating and maintaining the new facilities, and include the amount necessary to make debt service. The City always has the option to change the rates, but must continue to assure that the rate structure recovers expenses and debt service from users based of 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 has increased to cover current operations and to augment the System Replacement Reserve. Table 4 shows the proposed 1993-94 Sewer Rates by Classification. These rates were last changed September 1991. During preparation of the sewer rate study, staff contacted 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 6 proposed single family residential rate would be the second highest. Some of the surveyed agencies receive property taxes as exhibited in the Rate Survey. This additional income, which San Bernardino Municipal Water Department does not receive, supplements the rate and keeps the rates lower than a strictly rate based agency. Most of the representatives interviewed indicated that their respective agencies have adopted policies of adjusting rates annually based on approved budget requirements. Conclusions EPA grant conditions and State guidelines require a user charge system be adopted which demonstrates fair and equitable charges to all system users. The 1993 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 the fiscal year (FY) 1993-94 and anticipated additional debt service. Due to O&M and capital related cost increases, and added debt service, the budget (operating costs) have increased approximately 50% since the sewer service rates were last adjusted in 1991. To balance the budget, sewer service rates need to be adjusted. Since direct operating costs decreased by 4.9%, almost all of the proposed rate increase is attributed to the proposed debt service associated with the RIX projects. The net result is that residential sewer rates (single family, duplex, and triplex) would be increased nearly 9.5% for FY 1993-94. Based on these findings, the Board of Water Commissioners request the Mayor and Common Council to adopt the Resolution f ixing and establishing charges for services and facilities furnished by the City Sewerage Collection Treatment System located inside and outside the incorporated territory of the City. 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. 7 a Table 4 PROPOSED FY 1993-94 SEWER UTILITY RATE INSIDE CITY Regional Proposed Current Facilities Collection Total Monthly &Treatment System Monthly Classification City Charge Charge Charge City Charge Residential $ 13.60 per unit $ 13.55/mo/unit $1.35/mo/unit $14.90/unit (Single-Family, duplex, Triplex) Multi-Family, Mobile Home $ 0.75/hcf $ 0.80 per hcf $ 0.15/hcf $ 0.95/hcf Parks (4 or more Units) Retail, Commercial, Light $ 1.10/hcf $ 1.15 per hcf $ 0.15/hcf $ 1.30/hcf Industrial (Non-Office, Bakeries, Markets, Theaters, Dry Cleaners Auto Repair, Car Wash $ 1.20/hcf $ 1.25 per hcf $ 0.15/hcf $ 1.40/hcf Offices, Motels $ 1.00/hcf $ 1.00 per hcf $ 0.15/hcf $ 1.15/hcf (without Restaurants) Restaurants, Hotels $ 1.65/hcf $ 1.75 per hcf $ 0.15/hcf $ 1.90/hcf (Hotels/Motels with Restaurants) Laundromats $ 0.85/hcf $ 0.95 per hcf $ 0.15/hcf $ 1.10/hcf Hospitals, Convalescent $ 0.75/hcf $ 0.85 per hcf $ 0.15/hcf $ 1.00/hcf Schools, Churches, Nursery $ 0.60/hcf $ 0.55 per hcf $ 0.15/hcf $ 0.70/hcf Schools/Day Cares Industry 908.33/MG 264.22/1,000 LBS BOD (Discharge Flow) 324.28/1,000 LBS SS 8 Table 5 PROPOSED 1993-94 SEWER UTILITY RATE OUTSIDE CITY Regional Proposed Current Facilities Collection Total Monthly &Treatment System Monthly Classification City Charge Charge Charge City Charge Residential $ 17.40 per unit $13.55/mo/unit $1.35/mo/unit $14.90/unit (Single-Family, duplex, Triplex) Multi-Family, Mobile Home $ 1.10/hcf $ 0.80 per hcf $ 0.15/hcf $ 0.95/hcf Parks 0 or more Units) Retail, Commercial, Light $ 1.45/hcf $ 1.15 per hcf $ 0.15/hcf $ 1.30/hcf Industrial (Non-Office, Bakeries, Markets, Theaters, Dry Cleaners Auto Repair, Car Wash $ 1.55/hcf $ 1.25 per hcf $ 0.15/hcf $ 1.40/hcf Offices, Motels $ 1.35/hcf $ 1.00 per hcf $ 0.15/hcf $ 1.15/hcf (without Restaurants) Restaurants, Hotels $ 2.00/hcf $ 1.75 per hcf $ 0.15/hcf $ 1.90/hcf (Hotels/Motels with Restaurants) Laundromats $ 1.20/hcf $ 0.95 per hcf $ 0.15/hcf $ 1.10/hcf Hospitals, Convalescent $ 1.10/hcf $ 0.85 per hcf $ 0.15/hcf $ 1.00/hcf Schools, Churches, Nursery $ 0.95/hcf $ 0.55 per hcf $ 0.15/hcf $ 0.70/hcf Schools/Day Cares Industry 908.33/MG 264.22/1,000 LBS BOD (Discharge Flow) 324.28/1,000 LBS SS 'HCF = 100 Cubic Feet of water usage 9 TABLE 1: SEWER FUND BUDGET COST EXPENSES EXPENSES ESTIMATED CATEGORY 1 FY 1991/92 FY1992/93 FY1993/94 Treatment Facilities Direct Expense: Plant Operations& Maintenance: Salaries 1,610,386 1,669,988 1,989,606 Materials& Supplies 305,494 179,391 277,700 Power 1,005,319 927,000 900,000 Fuel&Lubricants 173,492 63,236 50,000 Chlorine& Other Chemicals 233,599 302,490 383,200 Other 172,256 203,894 198,250 O& M Services by CWD 4,661 2,000 4,500 Outside Labor 157,101 45,000 185,000 Permits&Fees 47,868 41,837 52,000 Sludge Processing& Hauling 1,062,163 1,175,599 863,500 Laboratory 154,649 121,576 211,500 Subtotal Direct Expenses 4,926,988 4,732,011 5,115,256 General Expenses: Tool& Equipment Maintenance 45,993 10,083 26,200 Auto&Truck Maintenance 52,157 43,368 59,850 Industrial Waste Inspection 215,465 263,801 285,272 Engineering& Special Professional Services 447,434 599,714 500,000 Subtotal General Expenses 761,049 916,966 871,322 Administrative& Office Expenses: Salaries& Benefits 1,543,398 2,405,000 1,647,274 Administrative Services Performed by CWD 384,878 360,340 400,000 Data Processing 40,139 23,334 27,700 Office Supplies,Equipment,Legal,Audit, Professional Services&Miscellaneous 330,078 265,803 319,152 Subtotal Administrative & Office Expenses 2,298,493 3,054,477 2,394,126 Reserves: Operating Reserves(= 1 month expenses) 665,544 725,288 698,392 Subtotal O& M Appropriated to all Regional Users: 8,652,074 9,428,742 9,079,096 Capital Related Costs: PSA Rent 536,000 714,667 536,000 SAWPA - SARI Brine Line Loan 0 562,000 562,000 Trustee Fees&Amortization 207,760 118,800 122,500 1986 Bonds 197,770 0 0 1992 Bonds (Prin+ Int) 1,304,533 3,434,250 3,401,438 Capital Items - Rate Base Only 0 150,413 142,893 Depreciation 1,412,426 1,500,000 1,610,702 Capital Revenue Requirements (3ASX,RIX) 0 0 2,587,935 Subtotal Capital Appropriated to all Regional Users: 3,658,489 6,480,130 8,963,468 TOTAL REGIONAL COSTS: 12,310,563 15,908,872 18,042,564 San Bernardino Users Only: Sewer Line Construction& Maintenance (2) 866,557 932,555 1,165,530 Billing&Collection Expense (2) 63,000 63,000 63,000 Total Appropriated to San Bernardino Users Only: 929,557 995,555 1,228,530 (1) Budget information provided by City Water Department and City Public Services Department (2)Allocated to San Bernardino users only. Costs associated with the collection system are mostly attributed to O&M vs Capital costs. .EV-00...w, 0 TABLE 2 REVENUE ANALYSIS Operating Revenues 1991-92 1992-93 1993-94 Sewer Charges — City Net Residential Sewer 3,924,956 5,348,860 7,908,687 Net Non—Residential Sewer 4,707,696 4,595,771 4,884,658 Subtotal City Charges 8,632,652 9,944,631 12,793,345 Sewer Charges — Outside City Loma Linda — Residential 446,566 477,035 585,685 Loma Linda — Non—Residential 436,572 671,292 777,723 East Valley — Residential 1,669,772 2,255,815 2,475,585 East Valley — Non—Residential 757,566 1,278,378 1,300,957 Sewer Charges — Other Entities 38,421 32,560 25,200 Subtotal Outside Charges 3,348,897 4,715,080 5,165,150 Industrial Waste&Other Sales& Fees 432,522 365,161 130,450 Interest&Other Non—Operating Income 1,666,398 1,611,900 1,611,500 TOTAL REVENUE 14,080,469 16,636,772 19,700,445 TOTAL EXPENSES 12,574,576 16,179,139 19,088,831 NET INCOME 1,505,893 457,633 611,614 SEWER CHARGES & OTHER REVENUE BY FISCAL YEAR 22 20 18 16 14 0 12 = 10 8 6 4 2 F° 0 Residential - es a UEast ValleyattOther Salese total Revenue INCOME -91-92 92-93 ED 93-94 94 WRREV.wk TABLE 3 EXPENDITURE ANALYSIS FISCAL YEAR PERCENT Operating Expenses 1991-92 1992-93 1993-94 INCR/DECR Plant Operations 2,883,376 2,996,909 3,048,012 Plant Maintenance 1,208,822 1,021,619 1,018,278 Facility Maintenance 0 0 281,823 Laboratory 305,356 234,863 466,372 Sludge Processing 1,163,584 1,212,138 922,821 Environmental Control 215,465 263,801 285,272 Engineering 447,434 599,714 500,000 9 9 Subtotal Operating Expenses 6,224,037 6,329,044 6,522,578 3.06,6 General Admin &Overhead 2,361,493 3,117,477 2,457,126 -21.18% 1 8,585,530 9,446,521 8,979,704 -4.94% System Service Charge 866,557 932,555 1,165,530 Depreciation 1,412,426 1,500,000 1,610,702 Existing Debt Service (1) 1,663,147 3,996,250 3,963,438 RIX Project Debt Service 0 0 2,587,935 Trustee Fees &Amortisation 46,916 118,800 122,500 Required Reserves (SWRCB) (2) 0 0 516,129 Capital Items For Rate Base 150,413 150,413 142,893 Subtotal 4,139,459 6,698,018 10,109,127 50.93% TOTAL 12,724,989 16,144,539 19,088,831 18.24% (1) Existing Debt Service: 1986 Bonds 1,663,147 0 0 SARI Brine Line 0 562,000 562,000 1992 Bonds 0 3,434,250 3,401,438 Total 1,663,147 3,996,250 3,963,438 (2) Required Reserves: SWRCB 5% Loan Reserve 190,000 Operating Reserve Requirement 326,129 Total 516,129 SEWER FUND EXPENSES& RESERVES BY FISCAL YEAR 20 18 16 14 v� 12 g o 10 p 6 4 2 0 oil Ops Lab Envir Admin Depr Other Capital Mtce Sludge Eng City Debt Resery TOTAL EXPENDITURE TYPE = 91-92 1= 92-93 = 93-94 USVVFg cP..wn m v UU x (1 LL U LL U O 8 8 C g 6 8 S C o z Q c m L c S Y Y [ O � � � LL LL LL LL LL D E E E R R R R 8 8 8 8 8 8 n n ri n ri w ri ri G « « z LL � 5 m 2 $ a U w E S A o < W m � L. 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