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Home My WebLink AboutAgenda Statement 1981/06/16 Item 5 COUNCIL AGENDA STATEMENT Item +i-5" ITEM TITLE: 6 9 81' Meeting Date " _ I " - g- , Resolution /~ Y9.s-- Modifying the Master Fee Schedule Relative to Sewer Service Charges Ci ty Eng ineer rrJf/ SUBMITTED BY: I' ~ (4/5ths Vote: Yes___ No___) The cost of providing sewer service to the community has risen dramatically since the last adjustment to sewer service charges in June 1978 (Resolution 9162). The primary cause of that increase has been rapidly escalating Metro System maintenance and operation costs. Projected sewer service income is insufficient to meet the City's sewer related obligations in the 1981-82 fiscal year. It is therefore my RECOMMENDATION: 1. That the Master Fee Schedule be modified as shown on the attached Exhibit "A" to provide basic sewer service charges as follows: a. Single family dwelling unit - $5.40 per month. b. Domestic, other than single family - $0.43 per each hundred cubic feet of water usage. c. Commercial and industrial - $0.43 per each one hundred cubic feet of water usage. 2. That such new sewer service rates become effective July 1, 1981 to be applied to the first whole billing period following such date by the Sweetwater Authority and the Otay Municipal Water District. BOARD/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: The current sewer service charge basis ($3.00 per month/$0.24 per 100 cubic feet wa ter used) was im plem ented in July 1978. Metro System maintenance and operation (M&O) costs were then about $125 per million gallons. The projected Metro M&O cost for 1981-82 as used in budget preparation is $400 per million gallons. Other related costs such as local system M&O have also risen, although not as dramatically as the Metro System costs. Charges by the Montgomery and Spring Valley Sanitation Districts are tied to Metro M&O charges and have increased at a similar rate. It is interesting to note that sewage generation by a typical family unit during one month will result in an obligation to the Metro System by the City in excess of $3.00. This figure does Form A-113 (Rev. 11/79) lot{q~ Page 2, Item Meeting Date J.e..,s- 6 ~ 81 ~...,(.. not reflect Metro capacity charges, sanitation district charges, local collection agency M&O, engineering or collection system costs and so it is quite apparent that the current fee structure is inad equa te. projected sewer-related expenditures during the 1981-82 Fiscal Year total $1,944,560 (Sewer Service budget $1,578,680 plus transfers to General Fund of $365,880). Available funding includes $1,803,000 projected income plus $434,500 Reserve Balance for a total of $2,237,500. It is anticipated that the Reserve Balance (without credit for earned interest) will drop to about $293,000 by the end of Fiscal Year 81-82. In order to gain some idea of what to expect in the future we have determined the average annual increase in sewer-related expenses for the last five years. That average is $278,000. If the 1982-83 budget increases by such amount we may expect the need for yet another rate increase a year from now. The attached Exhibit "B" depicts the relationship between total sewer-related expenses and available Reserve Balance during each of the last five years plus the coming two years. The projected trends are dependent upon inflation rates, rate of deterioration of the Metro System facilities, federal mandates and other largely unpredictable factors. The projections shown therefore are subject to considerable change during the coming year. A survey of other agencies served by the Metro System discloses that eight of ten agencies contacted have recently accomplished o r pro po set 0 a c com pI ish i n c rea s e sin the i r sewer s e r v ice charges. The following is a summary of our findings: AGENCY SINGLE FAMILY RATE (per month) Chula Vista Coronado El Caj on $3.00 $5.20 $2.00 + 25% of water bill - $5.00 max. $7.94 $5.00 $3.32 $6.25 $2.75 (equiv.) 1m per ial Beach La Mesa National City Lemon Grove Spring Valley San. Dist. Montgomery San. Dist. San Diego Ci ty $2.50 (equiv.) $4.50 INCREASE CONSIDERED $5.40 Up to $9.75 being considered Under study - no change expected No (new rate) Under study $5 to $6 range under study No (new rate) Equivalent of $5.75 under study No (large reserve) Under study It is important that this rate adjustment be accomplished early in the 1981-82 fiscal year so as to assure meeting budget income projections. Implementation will necessitate billing program ICJ,\({~ Page 3, Item Meeting Date -+& S- 6 5).. 81 "..' liD modification by the water serving agencies. Work on those program modifications will be undertaken immediately following Council approval of the rate increase. FINANCIAL STATEMENT: If implemented in July 1981 the recommended rate structure will generate approximately $1,803,000. Costs to modify water serving agencies billing programs are estimated at $2,000. WEH: fpw/KY-090 ~,~ /~ by the City Council of Chula VbtJ, C2Ii.<ornia Datc:d ~ .. 9.. i I ...,.",..--..... ~. t:.~,2 C:ity C:c.~~p~!~il of Ci1U:3 Vis Ca:: for::ia i, ~ J [)--tec! _b~&- il------1 l_.._~__-- ~.~~,,_..:. lo~ qi) 5 EXHIBIT "A" CODE SECTION 3.20.020 WITH PROPOSED CHANGES UNDERLINED' 3.20.020 Service Charges Designated - Payment Required - Real Property Defined. In addition to other fees, assessments or charges provided by the City Code or otherwise, the owner or occupant of any parcel of real property which said parcel is connected to the sewer system of the city and to a water system maintained by the Sweetwater Authority or the Otay Municipal Water District shall pay a sewer service charge as follows, applicable to the first whole billing period subsequent to July lL 1981: A. Domestic: The domestic sewer service charge for each single family dwelling unit serviced by a separate water meter shall be five dollars and forty cents per month. B. Domestic: A monthly sewer service charge for other parcels of real property used for domestic purposes as herein defined, and serviced by a water meter shall be at the rate of $0.43 per each one hundred cubic feet of water usage by such parcel, but in no case less than five dollars and forty cents per month, nor more than !,ive dollars ana fortX cents per dwelling unit per month; C. Commercial and industrial: A monthly sewer service charge for premises used for other than domestic purposes shall be at the rate of $0.43 per each one hundred cubic feet of water usage by such premises, but in no case shall be less than five dollars and forty cents per month. I ()'~ q~ ~'I Y1 ~ ~ ~~.~ ~,~ ~ ~ ~ Cr\ n ~ > ''t.J ~ I ~ ~ ~ ~~~ ~~ ~ ~~~ ~: ~ ~,~ ~ ~ l~ ~ ~ ~ ~ '$~~ ~ ~ f\j ~I\I J ~V}~ ' ~ \t) ~ '\.' I ~ (\~~V\ -"- ~ ~~ ~ ~ ~ ~*'~ ~L ~ . I ~i '" '\ I \ I ~~ \~ ~.1r) ~ ~- , o CJ ~ i' ~ N ~ '" . QJ ~ '""" ~~() d . ~ ~~$ \)' .. ~tL~4)~ ~.~ ($ ~I '~~ NI {>~\v '" I "t \:) \\l ~ --------- ~ \::). -~ ~bhol ~ t\ \\1- I ~ ~ -- -- - ------- - -----1 / ~ I 00 I I ~ / I ~ --- -- __u ---- --- . ------ ,e-----t / I f\( ~ I i ~ :i~ I! I ~~ I i ~ " ------------6T------------~-~-~--u - - ---1.----- ---1 ~l ~ ~ / i" " ~ \J / i ~(() ~ ~ -l.~ I I I ~ ~ ~"" ! v~ o ~ : ~ ~ i.J i f. " -~-r- - --1 ~I 6\ ~. (j It) , /',. \; ~ ~1..J; - ~ ~ ~ (1 ~~ ~ ~-'\----l -: I !l' \ I_~ ~ I -I'. (} -- ---j ~ I I'-.. ~ ! -t; }~ C a ~ t;)' \:) ~ ~ ~-. .. ~ ~ ,-------- -C} ~ $ t~ t) ,\ ~ ~ \~ " "'1 ~ ~ \) ~- t;j ~ ~ c) .~ ~ ~ 'V\ -- ..3/7"7 6;/f ~-6"770 a 76'.-L <::?-L 5"..:9 n ~ ,A...:T d" .:iY ::> / /1 ~..z S ~.E' /Y...:?5 A8 CZ.:fi1 (Z/Vl'7d >,31...L I /l1.....l.:;>t! tb3fif~ . . . t . ...,~!~ MIILIC "Y.'ING . ; .",.' ',' ,",' On Tuesday, June 16, 1,981, the.City. Council of Chula Vista wil1 consider an in'crease in tlie sewer service f,ates.' tobeeffeftive o()n July 1, 1981, ,as fo~ ~ lows: '. . '. . . . '.. Single F.al'1'\~i'YDwelling Units from $3.00. to. ....0 .per month . Domestic (other than sinale famiiy)," .'., commercial and industrial , . .$.OG,.r.oc~ hundred cublcf..t of wat.r Ulaj. .You are invited to speak to the City Council on this. .m.atte!e.T.. h.m.... ting. !lill begi.,:,. at?~~ p.m. in the Cou*,cd Cham,ber, PublacServices BUilding, 276 Fourth A~enue, Chulo Vista. . /-,otffJ ----- c::? S ..5 - - . PUB LIe M E E TIN G ON TUESDAY) JUNE 16) 1981) THE CITY COUNCIL OF CHULA VISTA WI~L CONSIDER AN INCREASE IN THE SEWER SERVICE RATES TO BE EFFECTIVE ON JULY 1) 1981) AS FOLLOWS: SINGLE FAMILY DWELLING UNITS - FROM $3,00 TO $5,40 PER MONTH DOMESTIC (OTHER THAN SINGLE - $,043 PER EACH HJNDRED CUBIC FAMILY)) COMMERCIAL AND FEET OF WATER USAGE INDUSTRIAL YOU ARE INVITED TO SPEAK TO THE CITY COUNCIL ON THIS MATTER, THE MEETING WILL BEGIN AT 7:00 P,~J. IN THE COUNCIL CHAMBER) PUBLIC \.p SERVICES BUILDING) 276 FOURTH AVENUE) CHULA VISTA, cr ::r a ---