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Home My WebLink About1991/06/18 Item 33 COUNCIL AGENDA STATEMENT SUBMITTED BY: Item ~ '< Meeting Date 6/i'879f Resolution \~"t-i, Adopting a Modified Sewer Rate For Multi-Family Lots With Multiple Water Meters Director of Public W~rk~ City Manager 91 it (4/5ths Vote: Yes_No_) ITEM TITLE: REVIEWED BY: On June 4, 1991, Ms. Laura Smith addressed the City Council about her concerns on the costs involved in connection with her sewer bills on rental property she owns. She indicated that because of the fact that her units were all individually metered she was paying a substantially higher monthly sewer bill than comparable multifamily properties with a single water meter. In actuality, she has two meters serving three units on one lot and two meters serving four units on the other lot. The City Council directed that this item be docketed for the June 18, 1991 meeting with an appropriate report and recommendations from staff. RECOMMENDATION: That the City Council adopt the resolution enacting a modified sewer rate for multi-family lots with multiple water meters according to alternative two. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: Ms. Laura Smith owns two separate lots at 244/246 'G' Street and 248/250 'G' Street with three and four apartment units respectively on the lots. On the lot at 244/246 'G' Street, there are two water meters to serve the three units and at 248/250 'G' Street there are two water meters to serve the four units. The City's sewer rate structure for multiple family units is based on a rate per hundred cubic feet of water used with a minimum billing equal to the single family flat rate. Because of this, Ms. Smith's sewer bills have been higher than a comparable apartment unit with one water meter. There has been no other available rate structure for this type of situation and both staff and Sweetwater Authority have indicated in the past that she should install a single meter to solve her problem. Ms. Smith indicated she uses these meters to help control her tenants water use, thereby assisting in water conservation, and that she should not be penalized for doing so. Staff has reviewed her water bills and related information and has looked at available alternatives. The first alternative is to enact a special rate for all multiple family lots with multiple water meters whereby the sewer billing is based strictly on the usage rate of $1.23 per one hundred cubic feet of water used with no minimum. This alternative applies the commercial rate structure to such situations. In the attached tables alternative one has been calculated for all of Ms. Smiths units since December, 1989 using the rate structure in effect at the time. In the summary it can be seen that in approximately half of the billing periods Ms. Smith would "33-1 Page 2, Item Meeting Date 6/18/91 have paid less than a single family home for the apartments and in over half the periods would have paid less than a comparable multiple family unit with a single meter. If we use variable rates in the future with no minimum, this alternative could be considered for single family homes. However, it would take a lengthy study to determine the financial impacts of this alternative. Therefore, this alternative is not recommended. Alternative two is to apply the multiple family rate to only one meter on the lot and the commercial rate to all other meters. The property owner would be allowed, at the beginning only, to select the meter to which the multiple family rate would apply. Under the multiple family rate, the owner would pay based on water used at $1.23 per hundred cubic feet with a minimum of the single family flat rate of $12.21 per month ($24.42 per bimonthly billing period). Although in Ms. Smith's situation this would result in a higher bill than for comparable multiple family units with a single meter, it would be considerably less than what she is currently paying. On the attached table for this alternative, staff selected the most advantageous situation to the property owner, based on past usage, in doing the calculations. This is staffs recommended alternative. Alternative three is to enact a special formula for all multiple family lots with multiple meters such that the minimum billing is spread out proportionately on all meters. Such a formula would take the form: (Monthly minimum + no. of D. U.'s on lot) x no. of D.U.'s on meter = Meter minimum. This alternative would create three minimum rates for Ms. Smith's meters and would have the possibility of creating a substantial number more citywide depending on the number of multiple family units with multiple meters within the City. Each special rate structure would have to be hand calculated and given to the water district to include with the billings. Because of the possibility of a large number of special rates, staff contacted Sweetwater Authority and Otay Water District for their input. Otay Water indicated that it could be done, but with the need to reprogram the computer to accept several codes, and with their backlog, it would be about a year before it could be done. Sweetwater initially was not able to provide an immediate answer, but they have indicated to staff in the past that they do not want to continue providing sewer billing services. Subsequently, they did advise us that there was no way they could possibly handle this type of change. Because of the potential for a large number of special rates which must be individually calculated for each condition, and the potential problems with the water districts, staff does not recommend this alternative. The fourth alternative is to not change the rate structure. This would require Ms. Smith to install a single meter to obtain a rate equivalent to other multiple family units. This could be done with the property owner retaining the individual meters for monitoring purposes. Staff does not recommend this alternative because, according to the property owner, it would not be cost effective. 33-) Page 3, Item Meeting Date 6/18/91 SUMMARY: Staff recommends that the City Council adopt a modified sewer rate structure for multiple family lots with multiple water meters such that one of the water meters has the regular multiple family rate structure. This rate structure includes a rate per hundred cubic feet of water used with a minimum billing equal to that of a single family residence. All other water meters would have the rate per hundred cubic feet of water used and would not include a minimum billing applied. Further, the property owner would be allowed to select the meter to which the multiple family rate is applied, but only at the beginning of the modified rate structure. Such a rate structure would be applied only upon request of the property owner because of the difficulty in staff determining when it would apply without owner input. Attached is a summary of the billings for the Smith properties under the different alternatives comparing them with a comparable standard multiple family complex and a single family bill. This summary indicates that, taking all of the complexities into account, the recommended alternative is the most equitable solution. FISCAL IMPACT: Staff does not have, nor can we determine, the precise number of lots or units that would be affected by this modification. However, we believe the fiscal impact would be minimal on an annual basis. File: KR-001, KY-158 Attachment: Billing Summary Tables (3) NO'" S~JIINAJ41> (WP51 ISW ANSONlSWR-RATE.MMO) 3 3-.3 ~ I) JI..J /) "I/;-:;~ DelX-.e" I~ COUNCIL AGENDA STATEMENT Item Meeting Date 6/18/91 ITEM TITLE: Resolution Adopting a Modifif)d Sewer Rate For Multi-Family Lots With MjJltiple Water Meters SUBMITTED BY: Director of ~UbliC Works ~ REVIEWED BY: City Manage\~~& (4/5ths Vote: Yes_No~.J \ \ . On June 4, 1991, Ms. Laura Smith apdressed the City Council about her concerns on the costs involved in connection with her sew~r bills.Am rental property she owns. She indicated that because of the fact that .her units wer~ alllndivi~ually metered .she v:as pa~ing a substantially hIgher monthly sewer bIll than compa\al'J1e multifamIly properties wIth a smgle water meter. The City Council directed that thiS...~.te,T"be docketed for the June 18, 1991 meeting with an appropnate report and recommendatIlins\rom staff. RECOMMENDATION: That the Cit Council adopt the resolution enacting a modified sewer rate for multi-family lots with multi e water meters according to alternative two. BOARDS/COMMISSIONS RECO None. DISCUSSION: Ms. Laura Smith owns two separate lots at 244/24 'G' Street and 248/250 'G' Street with three and four apartment unitS respectively on the lots. n the lot at 244/246 'G' Street, there are two water meters to serve the three units and at 248~0 'G' Street there are two water meters to serve the four units. The City's sewer rate structur~for multiple family units is based on a rate per hundred cubic feet of water used with a minimu~ billing equal to the single family flat rate. Because of this, Ms. Smith's sewer bills have been ~gher than a comparable apartment unit with one water meter. There has been no other avaihib1e rate structure for this type of situation and both staff and Sweetwater Authority have indicated in the past that she should install a sil)tie meter to solve her problem. Ms. Smith indicated she uses these meters to help control hili tenants water use, thereby assisting in water conservation, and that she should not be pena)1'zed for doing so. Staff has reviewed her water bills and related information and has looked at available alternatives. The first alternative is to enact a special rate for all multiple family lots with multiple water meters whereby the sewer billing is based strictly on the usage rate of $1.23 per one hundred cubic feet of water used with no minimum. This alternative applies the commercial rate structure to such situations. In the attached tables alternative one has been calculated for all of Ms. Smiths units since December, 1989 using the rate structure in effect at the time. In the summary it can be seen that in approximately half of the billing periods Ms. Smith would have paid less than a single family home for the apartments and in over half the periods would 33-'1 Page 2, Item Meeting Date 6/18/91 have paid less than a comparable multiple family unit with a single meter. If we use variable rates in the future with no minimum, this alternative could be considered for single family homes. However, it would take a lengthy study to determine the financial impacts of this alternative. Therefore, this alternative is not recommended. Alternative two is to apply the multiple family rate to only one meter on the lot and the commercial rate to all other meters. The property owner would be allowed, at the beginning only, to select the meter to which the multiple family rate would apply. Under the multiple family rate, the owner would pay based on water used at $1.23 per hundred cubic feet with a minimum of the single family flat rate of $12.21 per month ($24.42 per bimonthly billing period). Although in Ms. Smith's situation this would result in a higher bill than for comparable multiple family units with a single meter, it would be considerably less than what she is currently paying. On the attached table for this alternative, staff selected the most advantageous situation to the property owner, based on past usage, in doing the calculations. This is staffs recommended alternative. Alternative three is to enact a special formula for all multiple family lots with multiple meters such that the minimum billing is spread out proportionately on all meters. Such a formula would take the form: (Monthly minimum + no. of D. Uo's on lot) x no. of D. Uo's on meter = Meter minimum. This alternative would create three minimum rates for Ms. Smith's meters and would have the possibility of creating a substantial number more citywide depending on the number of multiple family units with multiple meters within the City. Each special rate structure would have to be hand calculated and given to the water district to include with the billings. Because of the possibility of a large number of special rates, staff contacted Sweetwater Authority and Otay Water District for their input. Otay Water indicated that it could be done, but with the need to reprogram the computer to accept several codes, and with their backlog, it would be about a year before it could be done. Sweetwater was not able to provide an immediate answer, but they have indicated to staff in the past that they do not want to continue providing sewer billing services. This alternative, if requested of them, could exacerbate that situation. Because of the potential for a large number of special rates which must be individually calculated for each condition, and the potential problems with the water districts, staff does not recommend this alternative. The fourth alternative is to not change the rate structure. This would require Ms. Smith to install a single meter to obtain a rate equivalent to other multiple family units. This could be done with the property owner retaining the individual meters for monitoring purposes. Staff does not recommend this alternative because, according to the property owner, it would not be cost effective. SUMMARY: Staff recommends that the City Council adopt a modified sewer rate structure for multiple family 33-5 Page 3, Item Meeting Date 6/18/91 lots with multiple water meters such that one of the water meters has the regular multiple family rate structure. This rate structure includes a rate per hundred cubic feet of water used with a minimum billing equal to that of a single family residence. All other water meters would have the rate per hundred cubic feet of water used and would not include a minimum billing applied. Further, the property owner would be allowed to select the meter to which the multiple family rate is applied, but only at the beginning of the modified rate structure. Such a rate structure would be applied only upon request of the property owner because of the difficulty in staff determining when it would apply without owner input. Attached is a summary of the billings for the Smith properties under the different alternatives comparing them with a comparable standard multiple family complex and a single family bill. This summary indicates that, taking all of the complexities into account, the recommended alternative is the most equitable solution. FISCAL IMPACT: The amount of the sewer billings would be minimally reduced under the recommended alternative. File: KR-001, KY-158 Attachment: Billing Summary Tables (3) 33-" APN 568-420-58 : 244 & 246 "G" Street ALTERNATIVE 1 SEWER SERVICE CHARGE CALCULATION BilLING WATER USAGE (100 C.F.1 SEWER BilLING CALCULATION PERIOD Acct.820 Acct.900 Total Rate($/HCF) Acct.820 Acct.900 Total Dec. '89 9 4 13 $0.70 $6.30 $2.80 $9.10 Feb. '90 12 1 13 $0.70 $8.40 $0.70 $9.10 Apr. '90 12 15 27 $0.70 $8.40 $10.50 $18.90 Jun. '90 11 11 22 $0.70 $7.70 $7.70 $15.40 Aug. '90 9 14 23 $0.70 $6.30 $9.80 $16.10 Oct. '90 5 18 23 $0.84 $4.20 $15.12 $19.32 Dec. '90 6 15 21 $0.84 $5.04 $12.60 $17.64 Feb. '91 6 8 14 $0.84 $5.04 $6.72 $11.76 Apr. '91 4 3 7 $0.84 $3.36 $2.52 $5.88 APN 568-420-58 : 244 & 246 "G" Street ALTERNATIVE 2 SEWER SERVICE CHARGE CALCULATION BILLING WATER USAGE (100 C.F.) SEWER BilLING CALCULATION PERIOD Acct.820 Acct.900 Total Acct. 820 Acct. 900 Total .. Dec. '89 9 4 13 9..70=$6.30 $17.40 $23.70 Feb. '90 12 1 13 12..70=$8.40 $17.40 $25.80 Apr. '90 12 15 27 12. .70=$8.40 $17.40 $25.80 Jun. '90 11 11 22 11..70=$7.70 $17.40 $25.10 Aug. '90 9 14 23 9..70=$6.30 $17.40 $23.70 Oct. '90 5 18 23 5. .84=$4.20 $20.82 $25.02 Dec. '90 6 15 21 6. .84=$5.04 $20.82 $25.86 Feb. '91 6 8 14 6. .84=$5.04 $20.82 $25.86 Apr. '91 4 3 7 4. .84=$3.36 $20.82 $24.18 NOTES: 244 "G" Street - S.W.A. Account No. 645-0900-0 - 2 Dwelling Units 246 "G" Street - S.W.A. Account No. 645-0820-0 - 1 Dwelling Unit Billed Bimonthly Minimum Usage at $0.70/HCF = $17.40(bimonthly)/0.70=24.9 HCF Minimum Usage at $0.84/HCF = $20.82(bimonthly)/0.84=24.8 HCF .. Figures in this coiumn based on minimum S.F. Rate '33-7 APN 568-420-59 : 248 & 250 "G" Street AL TERNA TIVE 1 SEWER SERVICE CHARGE CALCULATION BILLING WATER USAGE (100 C.F.l SEWER BILLING CALCULATION PERIOD Accl.740 Accl. 780 Total Rate($/HCF) Accl.740 Accl. 780 Total Dec. ' 89 4 4 8 $0.70 $2.80 $2.80 $5.60 Feb. '90 5 3 8 $0.70 $3.50 $2.10 $5.60 Apr. '90 5 16 21 $0.70 $3.50 $11.20 $14.70 Jun. '90 8 14 22 $0.70 $5.60 $9.80 $15.40 Aug. '90 9 16 25 $0.70 $6.30 $11.20 $17.50 Ocl. '90 9 21 30 $0.84 $7.56 $17.64 $25.20 Dec. '90 7 18 25 $0.84 $5.88 $15.12 $21.00 Feb. '91 9 12 21 $0.84 $7.56 $10.08 $17.64 Apr. '91 8 3 11 $0.84 $6.72 $2.52 $9.24 APN 568-420-59 : 248 & 250 "G" Street ALTERNATIVE 2 SEWER SERVICE CHARGE CALCULATION BILLING WATER USAGE (100 C.F.l SEWER BILLING CALCULATION PERIOD Accl.740 Accl. 780 Total Accl. 740 Accl. 780 Total .. Dec. '89 4 4 8 4..70=$2.80 $17.40 $20.20 Feb. '90 5 3 8 5..70=$3.50 $17.40 $20.90 Apr. '90 5 16 21 5..70=$3.50 $17.40 $20.90 Jun. '90 8 14 22 8..70=$5.60 $17.40 $23.00 Aug. '90 9 16 25 9..70=$6.30 $17.40 $23.70 Ocl. '90 9 21 30 9. .84=$7.56 $20.82 $28.38 Dec. '90 7 18 25 7* .84=$5.88 $20.82 $26.70 Feb. '91 9 12 21 9..84=$7.56 $20.82 $28.38 Apr. '91 8 3 11 8. .84=$6. 72 $20.82 $27.54 NOTES: 248 "G" Street - S.W.A. Account No. 645-0740-0 - 2 Dwelling Units 250 "G" Street - S.W.A. Account No. 645-0780-0 - 2 Dwelling Units Billed Bimonthly Minimum Usage at $0.70/HCF = $17.40(blmonthly)/0.70=24.9 HCF Minimum Usage at $0.84/HCF = $20.82(bimonthly)/0.84=24.8 HCF .. Figures in this column based on minimum S.F. Rate 33-~ SUMMARY FOR 248 & 250 "G" STREET APN 568-420-59 -------~-----------------_._--~.__._-~_._---_._------~------- -,~_._~--------~_._~.__._-_._-.~----~-'------_._------- Combined Actual Comparable Billing Water Sewer Multi Single Period Use (HCR lli!l Familv (1) .E9!:nilY. AIt.1 AIt.2 Dec. '89 8 $34.80 $17.40 $17.40 $5.60 $20.20 Feb. '90 8 $34.80 $17.40 $17.40 $5.60 $20.90 Apr. '90 21 $34.80 $17.40 $17.40 $14.70 $20.90 Jun. '90 22 $34.80 $17.40 $17.40 $15.40 $23.00 Aug. '90 25 $34.80 $17.50 $17.40 $17.50 $23.70 Oct. '90 30 $41.64 $25.20 $20.82 $25.20 $28.38 Dec. '90 25 $41.64 $21.00 $20.82 $21.00 $26.70 Feb. '91 21 $41.64 $20.82 $20.82 $17.64 $28.38 Apr. '91 12 $41.64 $20.82 $20.82 $9.24 $27.54 NOTE (1) Comparable Multi Family with Single Water Meter 3.3- ? RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A MODIFIED SEWER RATE FOR MULTI-FAMILY LOTS WITH MULTIPLE WATER METERS AND AMENDING THE MASTER FEE SCHEDULE The City Council of the City of Chula vista does hereby resolve as follows: WHEREAS, on June City Council about her connection with her sewer 4, 1991, Ms. Laura Smith addressed the concerns on the costs involved in bills on rental property she owns; and WHEREAS, because of the fact tha t her uni ts were all individually metered, she was paying a substantially higher monthly sewer bill than comparable mUltifamily properties with a single water meter; and WHEREAS, the City Council directed that staff return with an appropriate recommendation from staff; and WHEREAS, staff recommends applying the multiple family rate to only one meter on the lot and a rate per hundred cubic feet with no minimum to all others and the property owner would be allowed, at the beg inning only, to select the meter to which the multiple family rate would apply; and WHEREAS, under the multiple family rate, the owner would pay based on water used at $1.23 per hundred cubic feet with a minimum of the single family flat rate of $12.21 per month ($24.42 per bimonthly billing period) on one meter and on water used at $1.23 per hundred cubic feet with no minimum on all others. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby adopt a modified sewer rate for mUlti-family lots with multiple water meters at the rate of $1. 23 per hundred cubic feet with a minimum single family flat rate of $12.21 per month on one meter and on water used at the rate of $1.23 per hundred cubic feet with no minimum. BE IT FURTHER RESOLVED that the Master Fee Schedule shall be amended to add the modified multiple amily sewer rate. Presented by form by John P. Lippitt, Director of Public Works 8963a Attorney '33-ld