HomeMy WebLinkAboutAgenda Statement 1986/08/19 Item 6 COUNCIL AGENDA STATEMENT
Item 6
Meeting Date 8/19/86
ITEM TITLE: Resolution /- /� Approving amendment to agreement between
the City of Chula Vista and Sweetwater Authority for sewer
service billing and collection and authorizing the Mayor to
execute amended agreement
SUBMITTED BY: Director of Public Works/City Enginee 4
REVIEWED BY: City Manager : (4/5ths Vote: Yes No X )
The Sweetwater Authority is under contract to collect the sewer service
charges on behalf of the City from those residents within its service area.
The cost for this service is 25¢ per customer billing and was approved by
Council on September 18, 1979, by Resolution No. 9778.
Sweetwater Authority has notified the City that effective July 1 , 1986, the
billing charge for sewer service fees will increase from 25¢ to 50¢ per
customer billing.
RECOMMENDATION: That Council approve amended agreement increasing the
Sweetwater Authority billing charge for sewer service fees from 25¢ to 50¢ per
customer billing.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Sweetwater Authority has notified staff that effective July 1 , 1986, the
billing charges for collecting the City's sewer service fees from those
residents within their service area will increase from 25¢ to 50¢ per billing.
The 25¢ per billing rate was approved by the City Council on September 18,
1979, by Resolution No. 9778. Since then, Sweetwater Authority has
experienced increases in labor, computer services and postage costs. Postage
costs alone have increased from 13¢ in 1979 to 22¢.
In June, the Assistant City Manager and Engineering staff met with Sweetwater
Authority officials to discuss their proposed increase in the fee to the City
for billing the sewer service charge. Based on information presented by
Sweetwater Authority, City staff concurred that an increase was in order and
staff requested funds in the FY 1986-87 budget to cover an increase of 25¢ per
billing.
Page 2, Item 6
Meeting Date 8/19/86
It should be noted that in the 20 years Sweetwater Authority (formerly
CalAmerican Water Co. ) has collected the City's sewer service charge that this
is only the third rate increase requested by the utility. Sweetwater
Authority was originally contracted to collect our sewer service fee because
our fee structure is based on water consumption by certain users (commercial ,
industrial and multi-residential ) and we saw no economical advantage in
duplicating their billing system. Therefore, if we were to contract the
service with another Agency (such as the County Assessor) we would either have
to change the rate structure or purchase the water consumption information
from Sweetwater Authority. In any event, the change would be considerably
more expensive to implement when compared with continuing the contract with
Sweetwater Authority. The City of National City, also contracts with
Sweetwater Authority for the collection of their sewer service fee and is now
paying 50¢ per billing for this service.
FISCAL IMPACT: This agreement will double the cost to collect the sewer
service fees. The additional cost for the 1986-87 fiscal year is estimated to
be $22,000. Sufficient funds are available in the Sewer Service Revenue Fund
(Account No. 225-2250-5202) to cover this increase.
RS:fp/
WPC 2271E
// y7
by flee City Council of
Chula Vista, Califjrnia
IDated .4 a.v " r ' "
Form No. F-229
12/73
CERTIFICATE OF CITY/DIRECTOR OF FINANCE
Certification of Unappropriated Balance
I HEREBY CERTIFY that the money required for the
appropriation of funds for the purpose set forth in the attached
resolution is available in the Treasury, or is anticipated to
come into the Treasury, and is otherwise unappropriated.
Amount $ Fund
Purpose
Bidder
Director of Finance
The City of Chula Vista
Date By
Certification of Unencumbered Balance
I HEREBY CERTIFY that the indebtedness and obligation
to be incurred by the contract or agreement authorized by the
attached resolution can be incurred without the violation of any
of the provisions of the Charter of the City of Chula Vista, or
the Constitution or the laws of the State of California, that
sufficient monies have been appropriated for the purpose of said
contract, that sufficient monies to meet the obligations of the
contract are actually in the Treasury, or are anticipated to come
into the Treasury to the credit of the appropriation from which
the same are to be drawn, and that said monies now actually in
the Treasury, together with the monies anticipated to come into
the Treasury, to the credit of said appropriation are otherwise
unencumbered.
Amount Not to Exceed $ 22,000.00
/e0„_L L 12r L, lam%
Director of Finance
The City of Chula Vista
Date 8/19/86 By PUBLIC WORKS/CITY ENGINEER
Fund 225 Dept./Activity 2250-5202
Purpose SEWER SERVICE BILLING AND COLLECTION
Bidder CITY OF �CHULA VISTA AND SWEETWATER AUTHORITY
-i�° 6 )4<- Certificate No. �