HomeMy WebLinkAboutAgenda Statement 1981/05/12 Item 7
COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 5/12/81
ITEM TITLE:
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Resol uti an !b 'is- (. Approving agreement' with. the Otay r.1uni ci lJa 1 ,Jater
0istrict
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(4/5ths Vote: Yes
No~)
SUBMITTED BY:
City Engineer
The Otay Municipal Water District collects sewer service charges in its service area in
behalf of the City. Costs to provide such service have increased and the District has
requested an increase from $0.20 to $0.25 per billing. Staff-level discussions have
resulted in various minor changes in the original agreement with the result that a new
rather than an amended agreement has been prepared. It is my
RECOMMENDATION: That Council approve the new agreement.
BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable
DISCUSSION:
The City first entered into agreement with the Otay Municipal Water District to collect
sewer service charges in January 1965. The rate paid to the District at that time
was $0.10 per billing. That rate was increased to $0.20 per billing in August, 1973.
Subsequent increases in postage, computer costs, labor costs, etc. are sufficient to
justify a further increase to $0.25 per billing. The Director of Finance concurs that
the proposed rate increase is justified.
Other changes incorporated into the new agreement:
1. A switch in the method of computing sewer service charges to be applied to opening
and/or closing bills is included. The new procedure is in conformity with that
used by the District in computing opening and closing water bills and is therefore
more consistent and practical.
2. The agreement now calls for the District to provide a quarterly detailed billing
register with which the City can verify the propriety and magnitude of individual
sewer service charges made by the District.
The agreement specifies that the City will bear the cost of computer programming to
produce the quarterly register.
3. The new agreement does not provide a special charge for sewer variance billings
since such charge has never been utilized by the District.
4. The new agreement provides for certain additional fees to be paid to the District
relative to collection of sewage pump charges. While not a sewer service char~e,
this monthly levy against approximately 150 lots is distinctly related to sewer
activities and is most conveniently and efficiently collected with the sewer
service charge. Such fee is set at $0.25 per billing. .
FISCAL IMPACT: The annual amount paid to the District for collection of sewer service
(and sewer pump) charges will increase by approximately $3,000. Payment will be made
from thc".Sewer Service Fund.
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File: KY 013
Form A-l13 (Rev. 11/79) joc(67
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