SR-505-002-01 (2)
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Council Meeting: July 7, 1992
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Santa Monica, California
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To:
Mayor and City City Council
From:
City staff
Subject:
Recommendation to Direct City Attorney to Amend Certain
Sections of the Santa Monica Municipal Code Relating to
water and Wastewater Service
INTRODUCTION
This staff report recommends that the City council direct the
City Attorney to add and amend certain sections of the Santa
Monica Municipal Code relating to water and wastewater service.
BACKGROUND
City staff is recommending that certain additions and changes be
made to the Santa Monica Municipal Code relating to water and
wastewater services. The modifications will make the ordinance
language consistent throughout certain Municipal code sections,
clarify or add sections so that the city can better recover the
actual costs of water and wastewater service, and provide
consistency with the City practice of setting and revising fees
and deposits by resolution. Many of these sections have not been
reviewed or revised since the 1960's and 1970's.
RECOMMENDED REVISIONS TO SECTIONS OF THE MUNICIPAL CODE RELATING
TO WATER
Add Section: Late Fees for Past Due utilities Bills. Currently,
an inequity exists in that there is no incentive to pay utility
bills on time.
The utility bill which includes water, sewer,
refuse and Baysaver charges is sent to a customer on a bi-monthly
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basis. It is due upon presentation and delinquent after 25 days.
If a payment has not been received by the 35th day, a final
notice is sent. After 45 days, a field representative calls the
customer and/or leaves a "shut off" notice at the customer's home
or bus iness . The customer has 48 hours to pay the past due
balance plus a $15 service fee before service is disconnected.
If the customer contacts the office and is unable to pay the full
amount owed, a payment plan may be arranged in order to continue
service.
Total average monthly bills for 1992 are $1,763,819 and the
average net monthly past due accounts for 1992 is $718,110.
staff is recommending that a section be added to the Municipal
Code authorizing the City to assess a three percent late charge
which will be applied to past due balances appearing on the
bi-monthly utility bill. This late charge rate will be set and
revised by resolution. A revision of another section of the Code
will provide that a bill is deliquent 20 days after mailing. It
is anticipated that by implementing a late charge, utilities
bills will be paid in a more timely fashion, therefore, reducing
the amount of accounts receivables past due.
A survey of more than twenty other local water agencies indicates
that a majority of water agencies charge a late fee. cities that
are currently charging a bi-monthly late fee include the
Torrance (3%), Pasadena (as of July I, 1992, 5%), Los Angeles'
Department of Water and Power (3%), Manhattan Beach (5%), and San
Fernando (10%).
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Add section: Time Limits for credits and Backcharges. currently,
when a customer has been mischarged there is no provision in the
Code to provide for a retroactive adjustment and an
administrative decision is made for each occurrence. For
consistency in handling these types of mischarges, staff is
recommending that a section of the Code be added which
establishes the City's authority to provide retroactive
adjustments for a maximum period of two years from the date that
the error is first determined. Any overpayment or underbilling
shall be applied to the next or succeeding bills, unless other
arrangements are requested by the customer.
Add Section: Hydrant Flow Test. At a developer's request, the
Water Division conducts tests of available water flows and
pressures at various fire hydrant locations in the city in order
for the developer to design the proper fire sprinkler system for
a building. Currently, the City charges $200 for a hydrant flow
test. The authority to charge the fee is governed by Section
7203 "Temporary Water Service". However, staff is recommending
that a separate section be added to the Code to specifically
address hydrant flow tests and allow the fee to be set by
resolution. The fee will remain at $200.
Revise Article VII "Public Works II , Chapter 2 "Water Division".
Change "Water Division" to "utilities Division" throughout.
Change "Water Superintendenttf and "street Superintendent" to
"utilities Manager" throughout.
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Revise Section 7203 "Temporary Water service", paragraph (a)
"From Fire Hydrants". (Adopted 1986).
Currently, this section
authorizes City staff to establish a customer account for
temporary water service at a vacant site during construction so
that the customer will not be charged for sewer or regular refuse
pick up.
The current charge for temporary water service is at
the highest unit rate (currently $.97 per billing unit) and no
bi-monthly fixed water meter rate is charged.
The bi-mont1y
fixed water meter rates were established to recover the fixed
costs of providing water service to the city's customers.
Providing temporary water service also incurs these fixed costs
and temporary water customers should be charged the same rates as
regular water customers. In addition, there is no incentive for
temporary water service customers to conserve since the water
use.
Therefore, staff is recommending that the section be
revised from "...and water used at the highest unit rate
established pursuant to Section 7200 herein..." to "...and water
used at two times the highest rate established pursuant to
"
Section 7200 herein and the appropriate bi-month1y fixed watef
meter charges shall be applied...1I
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Revise Section 7206 t1Water Construction and Connection Fee".
(Adopted 1986). The term IIWater Construction and Connection FeeH
should be changed to "Water Capital Facility Feell throughout the
section.
The term "connection fee II is no longer appropriate
terminology due to the adoption of AB 1600 (Sections 66000 et
seq. to the Government Code).
This bill renamed the fee and
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specified that funds collected for this purpose must be used for
capital expansions.
Section 7206, Subparagraph (e) states "Although fire
service installations are not subject to this (water connection]
fee,...". This section should be revised to state "Fire service
installations are subject to this fee and if necessary specific
offsite improvements may be required...II.
Revise Section 7208 "Meter Reading, Billing and collection".
(Adopted 1986). This section should be modified to provide a
consistent definition of when a utility bill becomes deliquent.
Currently Section 7208 reads "Water statements ... shall become
delinquent if not paid before the twentieth (25th) day after
mailing". The section should be revised to read "Water
statements ... shall become delinquent if not paid before the
twentieth (20th) day...II.
Revise Section 7210 uDeposit Guaranteeing Payment". (Adopted
1986) . This section should be revised to include reference to
sewer service charges. The first paragraph should be changed
from "... to guarantee the payment of all water services and
refuse collection charges..." to lito guarantee the payment of all
water service, sewer service and refuse collection charges...".
Also in the first paragraph, "The amount of the deposit ...shall
be approximately equal to an estimated three (3) months billing
for water and refuse charges..." should be revised to "The amount
of the deposit... shall be approximately equal to an estimated
three (3) months billing for water service, sewer service and
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refuse collection charges...". In the last paragraph, "the
deposit may be applied to any outstanding water or refuse
bills..." should be changed to "...the deposit may be applied to
any outstanding water service, sewer service or refuse collection
bills...".
Revise section 7.211 "Service Connections and Meters" r Paragraph
(b) "Changes in Location And/Or Size". (Adopted 1986). The
last sentence in the first paragraph should be revised from
" . . . shall be the regular service fee for that size service" to
"shall be the charge for instal1ling a new service and meter. It
This will clarify the language in the Code to be consistent with
Section 7.211 (a).
Revise Section 7220 "Testing Meters". (Adopted 1986). This
section allows a customer to request a water meter accuracy test.
If the meter is found to be inaccurate the City adjusts the water
meter as well as the water and sewer charges on the utilities
bill for the most current period. If the meter is found to be
correctly registering the water, then according to this section
"the consumer shall pay a twenty-five dollar ($25.00) fee for the
testing procedure."
Staff is recommending that the section be revised to set the fee
and/or deposit by resolution and require the customer to pay the
fee or deposit before the test is conducted. The proposed fee
for testing water meters 2" and under is $75.00 which is based on
actual average cost of labor and equipment. Testing meters 3"
and above generally requires more labor, equipment and materials
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as they vary greatly with each test. Staff is recommending that
for meters 3" and over a $250 deposit be collected from the
customer.
After a meter has been tested and found to be accurate, for
meters 2" and below the $75.00 will be retained. For meters 3n
and above, the actual cost of the test will be calculated and an
invoice for any amount over $250 will be prepared by Finance and
sent to the customer. If the actual cost of the work is under
$250, a refund will be given to the customer. For any size water
meter that is not accurante, any fee or deposit will be refunded
in whole and adjustments to the water and sewer charges will be
made on the most current utilities bill.
RECOMMENDED REVISIONS TO THE SEWER (WASTEWATER) CODE SECTIONS
Revise Section 7137 "Sewer Connection Feell. The term "Sewer
Connection Feell should be changed to "Wastewater capital Facility
Fee" throughout. As previously stated, the term "connection fee"
is no longer appropriate terminology due to the adoption of AB
1600 (Government Code sections 66000 et seq.). This bill renamed
the fee and specified that funds collected for this purpose must
be used for capital expansions.
Revise Section 7139 "House Connection Sewer". (Adopted 1949).
section 7139 states that nNot more than two lots shall be
connected to anyone house connection sewer." city staff has
been involved in settling disputes between several customers
connected to one sewer lateral. One such case is currently being
mediated by the city Attorney's office. Staff is recommending
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that the Code be changed to permit only one lot per connection
during new construction in order to avoid such disputes.
Revise Section 7141 "Duration of Permits". (Adopted 1961). This
section authorizes the city to cancel a sewer permit if the work
is not commenced within thirty days from date of issuance and
retain $5.00 as an administrative charge from the permit fee.
staff is recommending that the section be revised to authorize
the city to set and revise the amount retained from the permit
fee by resolution. The proposed retained amount is $25.00 which
represents the cost of the Ci ty to issue and cancel the sewer
permit.
Revise Section 7142 "Permit and Inspection Fees". (Adopted
1975). The city is authorized to collect permit and inspection
fees regarding sewer installation. Currently, Section 7142
states that the applicant pay Ita fee in the sum of $25.00 far
each such permit issued, which fee shall include the payment of
one inspection only. A fee of $10.00 shall be charged for each
additional inspection required." staff is recommending that the
section be revised to authorize the city council to set and
revise the fee by resolution. The proposed fees, which are based
on actual expenses, are $100.00 for the permit and one inspection
and $25.00 for each additional inspection.
Revise section 7143 tlSewer Connection Regulations" r Paragraph
(b). (Adopted 1955). This section currently states "The minimum
grade for any house connection sewer... shall be one percent."
Staff is recommending that this section be revised to state tiThe
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minimum grade for any house connection sewer...shall be in
conformance with the currently adopted edition of the Uniform
Plumbing Code." This revision will allow staff to enforce this
section using current industry standards and be consistent with
Article VIII "Building Regulations", Chapter 1 "Administrative
and Technical Codes", Section 8108 "Plumbing Codell.
Revise section 7145 "Tapping or Saddlin9 Sanitary sewers, storm
Drains or Catch Basins and Connections to Manho1estf I paraqraphs
A, B, D and G. (Adopted 1971). Staff is recommending that the
current section be revised from "Tap connections made to sewers
or storm drains over 18 inches in diameter..n to "Tap connections
made to sewers or storm drains over 12 inches in diameter... II .
The time involved and complexity in providing a tap connection to
a sewer or storm drain over 12 inches is the same as for an 18
inch and over sewer or storm drain.
Paragraphs A, Band D of Section 7145 refer to
miscellaneous deposits required from a customer in order to
connect to a city sewer. After a deposit is collected, the work
is performed. The acutal cost of the work is calculated by a
work order and the work order is forwarded to the Finance
Department and the customer is sent an invoice since the current
deposits do not cover the cost of the actual work. Staff is
recommending that the deposit be replaced by a fee set by
resolution therefore eliminating preparation of a work order and
invoice. The proposed fees are based on the average cost of each
type of connection. The current deposits and proposed fees are:
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Description
section 7145A: Saddle connection
section 7145B: Tap connection
Section 71450: Y-connection
Current
Deposit
$ 50.00
$100.00
$ 50.00
Proposed
Fee
$300.00
$400.00
$350.00
Paragraph G of Section 7145 refers to the contractor's
responsibilty to open and close the street in order for City
crews to physically connect the sewer to a house. To ensure the
safety of the city crews, staff is recommending that a sentence
be added: "However, in all cases where the house connection sewer
and the City sewer are connected such excavation shall be opened
and shored per OSHA regulations".
FINANCIAL/BUDGET IMPACT
Late Fees for Past Due Utilities Bills (New Section)
The 1992 monthly net average of past due accounts is $718,110.
The proj ected revenue generated from late fees is estimated as
follows:
Average Net 1992 Past Due utilities
Bill: $718,110
Est. monthly revenue @ 3% $ 21,543
Estimated annual revenue: $258,520
Staff is recommending that a separate revenue account be
established to track the funds generated from the late fee for
past due utilities accounts. It is anticipated that revenue will
be generated in the second quarter of FY 1992-93.
Temporary Water Service (Section 7203 (a)).
The increased per unit water charge and addition of the
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bi-monthly fixed charge to temporary water service will generate
an additional $70,956 per fiscal year. The additional revenue
will be in Account No. 25-500-671-00000-0235-10000.
Testing Meters (Section 7220) .
In FY 1991-92, 43 two-inch and smaller meters three-inch and
above were tested. The proposed fee increase from $25 to $75 for
two-inch and smaller meters will generate approximately $2,150.
The proposed fee increase from $25 to a deposit of $250 for
three-inch meters and above will generate approximately $1,125
per fiscal year (depending on the actual cost). A total of
$3,275 will be deposited at Account No.
25-500-671-00000-0235-10000.
Estimates on Credits & Backcharges
The revenue impact for credits and backcharges will be
insignificant.
Sewer Permit "Duration of Permits" (Section 7141).
Since very few sewer permits are cancelled, the revenue impact
would be insignificant.
Sewer Permit and Inspection Fee Increase (section 7142).
In FY 1991-92, approximately 48 sewer permits were issued. The
proposed fee of $100 would generate an additional $75 per permit
for a total of $3,600 in additional revenue. There were
approximately 156 inspections last year which generate an
additional $15 per inspection for a total of $2,340 in additional
revenue. Total additional revenue is $5,940 and will be
deposited in Revenue Account 3l-500-661-00000-0143-00000.
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Saddle, Tap and Y-Connection Fees (Sections 7145 A, B, D).
The actual revenue to be collected from the proposed fees will
not be significantly greater that the amount currently collected
via the work order system.
RECOMMENDATIONS
It is recommended that the City Council direct the City Attorney
to amend certain sections of the Santa Monica Municipal Code
relating to water and wastewater service as described in this
report.
Prepared by: stan Scholl, Director of General services
John Mundy, utilities Manager
Jean Higbee, Sr. Administrative Analyst
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