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Council Meeting: October 8, 1991
OCT 8 1991
Santa Monica, California
TO: Mayor and City council
FROM: city staff
SUBJECT: Recommendation to Adopt Resolution Establishing Revised
Wastewater Rates and connection Fees Effective December
1, 1991
INTRODUCTION
This staff report recommends that the City Council adopt the
attached resolution revising wastewater service charges and
wastewater connection fees.
BACKGROUND
Wastewater Rate
On October 1, 1991, staff presented to council for its approval a
revised wastewater rate structure which is the result of an
in-depth study, performed by Kennedy/Jenks/Chilton, of the
future expenditures and revenues required for the City's
wastewa ter system.
The proposed rate will generate sufficient
revenue to pay for the City's share of Los Angeles I Hyper ion
system upgrade, the City I S own system upgrade, and the costs
associated with general operation and maintenance.
Complying
with state and federal regulations, a rate structure was
developed to equitably allocate utility costs to wastewater
users.
Since the recommended rate structure required changes to the
existing code, an ordinance revising the applicable code sections
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OCT S \991
was prepared and presented to council on October 1, 1991. The
second reading of the ordinance is being presented concomitant
with this staff report. The revised rates are as follows:
USER CLASS SERVICE CHARGE BY METER SIZE
Meter Single Multi Without with
Size Family Family Permit* Permit**
5/8"-3/4u $ 16.98 $ 34.54 $ 42.81 $ 70.54
1" 23.77 48.36 59.94 98.75
1-1/2u 30.56 62.17 77.07 126.97
2" 49.24 100.17 124.16 204.56
3" 379.94 407.96 775.92
4" 483.56 599.40 987.53
6" 725.34 899.10 1,481.29
8" 1,001. 66 1,241.62 2,045.60
* incl udes governmental, insti tutional , and commercial and
industrial without an industrial discharge permit
**includes commercial with industrial discharge permits (such as
restaurants and photo finishes) and industrial with industrial
discharge permits
Variable (FlOW Related) Charge
USER CLASS
single Family
Duplex
Triplex
Fourplex
Over 4 Apartments
Individually metered multi-
family, regardless of
number of units
Commercial and Industrial
Government (except landscape
meters)
Public Schools and Churches
Landscape Meters
DISCHARGE FACTOR
51%
80%
85%
90%
95%
95%
89%
89%
89%
0%
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Single Family
Multi-Family
Government and Institutional
Commercial and Industrial not
requiring an industrial
discharge permit
commercial and Industrial
requiring an industrial
discharge permit
strength Charge
USER CLASS
Commercial and Industrial with
Industrial Permit
Commercial and Industrial with
Industrial Permit
Wastewater (Sewer) Connection Fees
VARIABLE FLOW CHARGE
$1.13 per HCF
$1.13 per HCF
$1.13 per HCF
$1.13 per HCF
$ .84 per ReF
STRENGTH CHARGE
$ .15 per pound BOD
$ .38 per pound SS
As discussed in the council study Session on September 24, 1991
and in accordance with concerns by Councilmembers that new
development pay a fair share of capital costs for both the
Hyperion system upgrades and the Santa Monica sewer system
this time.
upgrades it is recommended that connection fees be revised at
Based on information in the sewer master plan which is nearing
completion, Kennedy/Jenks/Chilton studied connection fees charged
to developers for capacity expansion. It was concluded that the
current
connection
are
inadequate to
fund capital
fees
Monica system.
improvements required for capacity expansion within the Santa
The following revised connection fees are
recommended:
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USER CLASSIFICATION
Single Family Residential
MUlti-Family Residential
1 Bedroom unit
2 Bedroom unit
3 Bedroom unit
Hotel/Motel
Commercial Building
Medical Building
Restaurant/Bar
sit down
Carry out
storage Building
Industrial Building
FINANCIAL/BUDGET IMPAeT
Wastewater Rate
PROPOSED SEWER
CONNECTION FEE
$1,982
$ 991/unit
$1, 487/unit
$1, 982/unit
$1, 140/unit
$1,070/1000 s.f.
$1,982/1000 s.f.
$247.75/seat
$2,636/1000 s.f.
$ 248/1000 s.f.
$ 991/1000 s.f.
CURRENT SEWER
CONNECTION FEE
$1,312.50
$ 656.50
$ 843.75
$1,031. 25
$1,687.50
$1,125/1000 s.f.
$1,500/1000 s.f.
$ 93.75/seat
$4,000/1000 s.f.
$ 113/1000 s.f.
$ 750/1000 s.f.
The proposed wastewater rate structure and December 1, 1991, rate
increase will generate approximately $1,396,750 in additional
revenue at account 31-500-661-00000-0165-100000 for FY 1991-92.
The estimated full year impact in FY 1992-93 will be $2,860,544.
This increased revenue is the amount necessary to meet the
proposed debt coverage and on-going operations and maintenance
costs for the wastewater system.
The
projection
Wastewater (Sewer) Connection Fees
for
connection
The new connection fees will
revenue
current
approximately $1.4 million.
fee
is
generate approximately 25 percent more revenue. It is difficult
to predict when construction-related revenue will be colleted,
however, historically approximately 32 percent of connection fee
revenue is collected by the end of November. Using this as a
guideline, an additional $238,000 in revenues for FY 1991-92 is
projected as detailed in the following calculation:
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$1,400,0000 x .32 : $448,000 will be collected
as of November 1991
$1,400,000 - 448,000 = $952,000 will be collected
after December 1, 1991
$952,000 x .25 percent = $238,000 in additional
revenue.
Revenue will be deferred to Account No. 31-000-000-00000-
9870-04680 until a corresponding wastewater expansion project is
constructed.
RECOMMENDATION
It is recommended that the City Council:
1) Adopt the attached resolution revising the wastewater service
charge and the wastewater (sewer) connection fees and
2) Revise the appropriate revenue budget to reflect the
additional sewer service charge.
Prepared by: stan Scholl, Director of General Services
F. J. Schroeder, Acting utilities Manager
Jean Stanley Higbee, Senior Administrative Analyst
Attachment: Resolution
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RESOLUTION NO. 8304(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY OF SANTA
MONICA ESTABLISHING A SEWER SERVICE
CHARGE AND A SEWER CONNECTION FEE
WHEREAS, Section 7l43B(c) of the Santa Monica Municipal Code
provides for the establishment of a sewer service charge from
time to time by the City Council; and
WHEREAS, Section 7137(b) of the Santa Monica Municipal Code
provides for the establishment of a sewer connection fee from
time to time by the city council: and
WHEREAS, the city faces increasing costs of operation,
maintenance, and replacement of the local sewer system, and
increasing operation, maintenance and replacement costs for that
portion of the Los Angeles Hyperion Wastewater System. which is
used by the City: and
WHEREAS, the city intends to issue wastewater revenue bonds
to pay its proportionate share of the capital cost of upgrading
the Hyperion Wastewater System, as mandated by the United States
Environmental Protection Agency and the state of ealifornia Water
Resources Control Board; and
WHEREAS, upon issuance of wastewater revenue bonds, the City
will be committed, through covenants of the Bond Indenture, to
satisfy certain requirements with regard to local system
operation and maintenance, payment of obligations to Los Angeles,
and establishment and collection of sewer rates and charges: and
the Director of General Services shall have the authority to set
any fixed rate component of the sewer service charge not covered
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by the above list, and to set a fixed rate component where more
than one user class are served by a common water meter.
WHEREAS, a recent wastewater revenue and rate analysis,
prepared for the City by an independent consultant, has shown
that the city will be unable to satisfy those requirements of the
Bond Indenture without increasing existing sewer service charges
and sewer connection fees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. That effective December 1, 1991, the fixed rate
component of the sewer service charge shall be as follows:
Single Multi- Other Other
Meter Size Family Family * **
5/8"x3/4" $16.98 $ 34.54 $ 42.81 $ 70.54
I" 23.77 48.36 59.94 98.75
1 1/211 30.56 62.17 77.07 126.97
2" 49.24 100.17 124.16 204.56
3" 379.94 470.96 775.92
4" 483.56 599.40 987.53
6" 725.34 899.10 1481. 29
8" IDOL 66 1241. 62 2045.60
* not requiring an industrial discharge permit
**requiring an industrial discharge permit
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SECTION 2. That effective December 1, 1991, the discharge
factor which shall be applied to the water usage to reflect the
amount of water which is discharged to the sewer system shall be
as follows:
single Family Residential
Duplex Residential
Triplex Residential
Fourplex Residential
Over 4 dwelling units
Individually metered multi-family,
regardless of number of units
commercial and Industrial
Government (except landscape meters)
Public SchoolS and Churches
DISCHARGE FACTOR
51%
80%
85%
90%
95%
USER CLASS
95%
89%
89%
89%
The Director of General Services shall have the authority to set
any discharge factor not covered by the above list and to make
adjustments in discharge factors for individual users where it is
determined that the actual quantity of sewage discharge is
substantially different from that established by the above list.
SECTION 3. That effective December 1, 1991, the variable or
volume related rate component of the sewer service charge shall
be as follows:
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RATE PER HCF OF
USER CLASS SEWAGE DISCHARGE
Residential $1.13
Governmental & Institutional 1.13
Commercial, not requiring an industrial 1.13
discharge permit
Commercial, requiring an industrial
discharge permit 0.84
Industrial, not requiring an industrial
discharge permit 1.13
Industrial, requiring an industrial
discharge permit 0 . 84
The Director of General Services shall have the authority to set
a variable rate component where more than one user class are
served by a common water meter.
SECTION 4 .
That effective December 1, 1991, the sewage
strength component of the sewer service charge shall be as
follows:
USER CLASS
STRENGTH RATE
Commercial, requiring an
industrial discharge permit
$0.15 per pound BOD
Industrial, requiring an
industrial discharge permit
0.15 per pound BOD
Commercial, requiring an
industrial discharge permit
0.38 per pound SS
Industrial, requiring an
industrial discharge permit
Sewage strength values for individual users or for various types
0.38 per pound 55
of users may either be estimated or determined by laboratory
analysis, at the direction of the Director of General Services.
Where sewage strength values are estimated, they shall be
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consistent with characteristic sewage strength values which may
be approved from time to time by the California State Hater
Resources Control Board, adjusted as necessary for local
conditions. No sewage strength values for commercial,
industrial, governmental, institutional or other non-residential
users shall be less than sewage strength values established for
residential users. The City may revise sewage strength values
from time to time as deemed necessary to reflect current
conditions.
In the event any user believes that the sewage strength values
established by the City for their sewage discharge are excessive,
said user shall have the option of having their sewage sampled
and analyzed at their own expense by a laboratory approved by the
city. The manner, frequency, and duration of sampling and
analysis shall be as approved by the city to ensure that
resultant sewage strength values are representative of all
conditions of discharges. During the time period when sewage
discharge is being analyzed, the user shall pay all sewer service
charges based on previously established sewage strength values.
In the event analyses show actual strength values to be less than
or greater than the previously established values, then the City
shall either refund or bill the user for the difference in
charges, as appropriate, provided, however, that no refund or
additional billing shall be made for a period in excess of 12
months.
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SECTION 5. That effective December 1, 1991, the sewer
connection fee shall be as follows:
USER eLASSIFICATION
SEWER CONNECTION FEE
Single Family Residential
MUlti-Family Residential
1 Bedroom unit
2 Bedroom Unit
3 Bedroom Unit
Hotel/Motel
Commercial Building
Medical Building
Restaurant/Bar
Sit Down
Carry Out
storage Building
Industrial Building
$ 1,982
991/unit
1, 487/unit
1, 982/unit
1, 140/unit
1,070/1000 sq. ft.
1,982/1000 sq. ft.
247.75/seat
2,636/1000 sq. ft.
248/1000 sq. ft.
991/1000 sq. ft.
The Director of General services shall have the authority to set
any fee not covered by the above list. Whenever a user of the
sewer system changes from one classification to another on the
above list, the sewer connection fee shall be that of the new
classification less that of the old classification, provided,
however, that if the new classification has a lower fee than the
old classification, no fee shall be imposed and no refund of any
previously paid fee shall be granted. Whenever a user of the
sewer system causes a significant increase on either the flow or
strength of sewage discharged to the system as a result of new
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construction, even though there may be no change in user
classification, an additional sewer connection fee may be imposed
as determined by the Director of General Services.
SECTION 6. That utility bills which overlap the effective
dates in sections I through 4 of this resolution shall have the
sewer service charge prorated over the period as though the sewer
use were equivalent on each day of the billing period.
SECTION 7. 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:
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ROBERT M. MYERS
City Attorney
(sewereso)
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Adopted and approved this 8th day of October, 1991.
(J. d d?
? Mayor
I hereby certify that the foregoing Resolution No. 8304(CCS)
was duly adopted by the city Council of the city of Santa Monica
at a meeting thereof held on October 8th, 1991 by the following
Council vote:
Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen,
Vazquez, Zane, Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
~'{/'4~
city Clerk (