SR-505-001-01-01 (6)
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Santa Monica, cal~ornia May 19, 1981
5tJ~-OOI- 0/- 01
CIS
TO:
Mayor and City Council
FROM:
City Staff
JUN 9 1981
SUBJECT: Proposed Increase In Sewer Treatment Fees and
Sewer Connectlon Fees
Introduction
This report describes escalating expenditures which are projected
for Santa Monica's sewer operations.
Substantial increases in
capital improvement projects are creating a demand against the
sewer fund which cannot be met. Staff recommends an increase in
sewer treatment fees from $.21/100 cubic feet (CF) to $.26/100
cubic feet (CF) and a 25% increase in Sewer Connection Fees.
Background
Sewer treatment fees were established by Council action Aprll 13,
1976, and sewer connection fees were adopted in January 1981, to
fund the following projects:
1) Capital improvements to the Los Angeles Hyperion
Sewage Treatment Plant. The Federal Government
mandated major improvements as a result of the
Federal Clean Water Bill, and all cities using
Hyperion must share the cost.
2) Operation and maintenance of Santa Monica's sewer
system.
3) In-City capital improvements.
The 1976 Sewer Treatment Fee was established at $.24/100 CF of
water consumed, with a credit for irrigation for residential uses
and with surcharges applicable to commercial and industrial users
to fund the cost of removing the pollutlon created by the
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JUN 9 1lj3\
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Santa Monica, cal.rnia May 19,1981
Sewer Treatment Fee
A rate increase from the current rate of $.21/100 CF to $.26/100
CF is recommended. This S.05/100CF increase will raise single
family sewer rates by .25 cents per month and multl-family rates
by .20 cents per unit per month for He "average user".
Attachment A illustrates projected revenues and expenditures
through Fiscal Year 1986/87 with and without the increase.
Sewage Treatment Fees and Sewer Connection Fees remain constant
year-to-year if no increases are approved by the Council. The
$.21/100 CF Sewage Treatment Fee generates $1,431,000 annually.
The proposed rate of $.26/100 CF will generate 51.704.810.
Comments on Attachment A
Staff is recommending a modest increase to become effective
immediately in order to avoid a substantial rate lncrease later
on. Following are explanations of the footnotes to Attachment A.
1)
The recommended
cash flow in
Sewer Division
and repay the
years.
increases will not avoid a negative
Fiscal Year 1983/84. However, the
can borrow from an Enterprise Fund
transfer of funds in subsequent
2) The new increases will create large fund balances
beginning in Fiscal Year 1985/86. Staff recommends
a reduction in the $.26/100 CF fee at that time if
no large unforeseen Santa Monica or Los Angeles
capital projects are required.
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San taM 0 n i ca. C a 1 '0 r n i a May 1 9. 1981
to fund the cost of removing the pollutlon created by the
particular activity if in excess of the concentration of domestic
sewage.
On June 14. 1977. Council actlon reduced the Sewer Treatment Fee
to $.21/100 CF of water consumption as recommended by staff due
to slower than anticipated completion of Hyperion capital
lmprovements.
In addition to the fee reduction. revenues have
also declined since 1977 as a result of water conservation
efforts.
The City is now faced with escalating costs for both
the Hyperion project and City capital improvements.
1) Hyperion Improvement Project. Federal and State
funding covers ~/-l/Z% of the cost of the Hyperion
Improvement Project. The remaining 12-1/2% is
shared among user cities until the project is
completed. The City of Los Angeles' Bureau of
Sanitation has projected Santa Monica's share of
12-1/2% of the Hyperion improvement costs will
reach $2.579.000 by Fiscal Year 1986/87.
$2,437,000 of that amount will be due by the end of
1983/84. After completion of the project. the
cities must begin repaying the 87-1/2% share.
Santa Monica will be liable for repaying tts share
over a 3D-year period, currently projected to begin
in Fiscal Year 1986/87.
2 ) Capital improvements for Santa Monica include a
$l,~UU,UUO expenditure in Fiscal Year 1981/82 for
the installation of a sewer in Broadway to
alleviate the current overload on the trunk line in
Colorado Avenue.
To adequately cover these projected expenditures, a rate increase
in
the
Sewer
Treatment Fee and the Connection Fee are
recommended.
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Santa Monica, cal~ornia May 19, 1981
Sewer Connection Fees
In January 1981, Sewer Connection Fees were establlshed to defray
the
expected
capital
improvements
necessitated
by
new
construction projects. Since then, 5300,000 has been collected.
Projected revenues from Sewer Connection Fees in Fiscal Year
1981/82 are conservatively estimated at 5150,000 and S50,OOO
thereafter.
Revenues could vary upward to as much as 5300,000
annually.
Staff recommends a 25% increase in this Fee. Based on the above
projections, revenues will increase by 537,500 in Fiscal Year
1981/82 and $12,500 per yer thereafter. See Attachment A.
It should be emphasized that these projections are tentative.
Since connection fees are tied directly to new construction,
revenues will be influenced by the national economy and inflation
as well as any locally imposed restrictions.
Recommendation
Staff recommends the Sewer Treatment Fee be increased from
$.21/100 CF to $.26/100 CF of water consumption, and the Sewer
Connection
Fee
be
increased
25%, effective as soon as
administratively feasible.
Prepared by: Stan Scholl
Ed Lash
Karen Rathbun
Attachment A
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RESOLUTION NO. 6280
( City Co un c i 1 S e r i e s )
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA RAISING
THE SEWER CONNECTION FEE AND THE
SEWER TREATMENT FEE
WHEREAS, the City Council may establish, amend or
revise from time to time by resolution the fee to be charged for
any sewer connection, pursuant to Section 7137 of the Santa
Mon7ca Mun7cipal Code; and
WHEREAS, the City Council may establish, amend or
revise from time to time by resolution the fee to be charged for
the sewer service charge, pursuant to Section 71438(c) of the
Santa Monica Municipal Code; and
WHEREAS, a study indlcates the need for additional
funds to support necessary maintenance and capital improvements
to the sewer system,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECT! ON 1.
Sewer Connectlon Fee.
The fee for sewer
connections to the sewer system, as provided for in Section 7137
of the Santa Monica Municipal Code, shall be as follows:
1
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Single Family Residence
Multi-Family Residence
1 Bedroom Unit
2 Bedroom Unit
3 Bedroom Unit
Hotel/Motel
Co mm e r cia 1 B u i 1 din 9
Medical Sui 1 di ng
Restaurant/Bar
Storage Buildings
Industrial Buildings
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S437.50/unit
S218.75/unit
$281. 25/unit
S343.75/unit
$562.50/unit
$375/1000 Sq. Ft.
$500/1000 Sq. Ft.
$ 31.25/seat
$37.50/1000 Sq. Ft.
$250/1000 Sq. Ft.
The Director of General Servces shall have
the authority to set any fee not covered by
the above list.
SECTION 2.
Sewer Service Charge.
The sewer service
charge, as provided for in Section 7143B of the Santa Monica
Municipal Code, shall be 26 cents per one hundred cubic feet of
sewage discharged into the City1s sewage system.
SECTION 3.
The City Clerk shall certify to the
adoption of this resolution and thenceforth and thereafter the
same shall be in full force and effect.
APPROVED AS TO FORM:
~~.~
Acting City Attor~
2
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ADOPTED A~D APPROVED THIS
OF June J 1981.
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I HEREBY CERTIFY THAT THE FOREGOIrlG RESOLUTlmL
1m. 6280 I \t~AS DULY ADOPTED 3Y THE CITY counCIL OF n\~
CITY OF SANTA r1GrnCA AT A REGULA~ r1EETH!G THEREOF HELJ O:~
June 16 J 1981 BY THE FOU_Oll LilG CDUNe L!... VOTE:
AYES: COUflCIU1H1BERS: Conn, Edwards. Press, Zane
and ~ayor Yanna~La Goldway
~JOES: COU~tC! L\~E!~BE~S: ~one
ABSPlT: courK I L:l:E\~BERS: Jennlngs. Reed
ABSTAH~ ~ (OUNeI U'~H1nEC~S: None
ATTEST:
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_._c_ 01----1' [ /' ) ,--~(r_:}f- t \._
CITY CLERK
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DISTRIBUTIO~ OF RESOLUTIO~ ~
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ORDIi\Ai'KE #
Introduced.
CouncIl MeetIng Date
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Adopted.
Agenda Item it
Was It amended?
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VOTE:
Affirmative:
i\'egativeo
Abstain'
Absent:
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DISTRIBUTION-
ORIGINAL to be SIgned, sealed and filed In Vault.
NEWSPAPER PUBLICATION (Date:
/7 ! J
Departmen t orIginating staff report (~)-/!../?' ~z.i./
(1 ty Attorney ffj7-~ W-~ L./7~ c.--D~ )
Agency mentIoned in document or staff report
(certIfied?)
SubJect file (agenda packet)
Counter file
Others:
AIrport
Parking Auth.
AudItorum
Personnel
BUIlding Dept.
Planning
EnVIron. Servo
PolIce (en-
forcement?)
FInance
FIre
Purchasing
Recr/parks
General Servo
LIbrary
Transportation
Treasurer
~fanager
pt
SE~D plj() COPIES OF ALL ORDINANCES
TO CODED SYSTE~S Attn Peter M~€learie
PROFESSIONAL 'CEXTERlotal Others:
ROUTE 71
BRIELLE, KEW JERSEY 08i30
TOTAL COPIES
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