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Home My WebLink About2003 07-01 CC MIN (2)Book 85/Page 154 7/01/03 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA July 1, 2003 The Special Meeting of the City Council of the City of National City was called to order at 9:45 p.m. by Mayor Nick Inzunza. ROLL CALL Councilmembers present: Inzunza, Morrison, Parra, Ungab (9:48). Councilmembers absent: Natividad Administrative officials present: Dalla, Diaz, Eiser, Hunter, Kirkpatrick, Matienzo, Morse, Myers. PUBLIC ORAL COMMUNICATIONS There were three speakers (no speaker slips) who urged the Council to consider the poor and disabled when establishing rates, and the possibility of having special rates for low-income residents. PUBLIC HEARING SEWER CAPACITY / FEES ADMIN (906-1-4) 1. Continued Public Hearing to consider a sewer rate change in each of the next three Fiscal Years 2004, 2005, 2006. (Public Works/Engineering) Steve Kirkpatrick, Assistant Director Public Works / Engineering, explained that one of the purposes of the continued hearing was to address two questions / issues raised at the previous meeting. First, the issue of a low- income rate. And second, the issue of why residential rates appeared to increase faster than commercial rates when, in fact, they do not. Karen Keese from PBS&J, the City's consultant, using a Power Point presentation and handouts (Exhibit A, attached) reviewed various subsidy programs and models that could be implemented for low-income residents as well as the related considerations and costs to be considered. Book 85/Page 155 7/01/03 PUBLIC HEARING (cont.) SEWER CAPACITY / FEES ADMIN (906-1-4) Ms. Keese also presented information that showed that residential and commercial rates are more similar than they appear to be. It was explained that the difficulty in comparing the two rates is because residential rates are a flat rate and commercial rates are based on water consumption and sewer strength. Staff clarified that even with the proposed new rates, National City will still have the lowest rates in the County. There was extensive discussion about actual vs. anticipated benefits and costs of a Universal Life Line Program. It was suggested that the Council adopt the proposed rates and form a committee made up of Mayor Inzunza and Councilman Morrison to find a universal life line program that works for the City. ADJOURNMENT The meeting was adjourned to the Next Regular Meeting of the City Council to be held on July 1, 2003, at 6:00 p.m., Council Chambers, Civic Center. The meeting closed at 11:15 p.m. The foregoing minutes were approved at the Regular Meeting of July 15, 2003. YOR CITY OF NATIONAL CITY ALL CITY COUNCIL MEETINGS ARE TAPE-RECORDED. YOU MAY LISTEN TO THE TAPES IN THE CITY CLERK'S OFFICE. COPIES OF THE TAPES MAY BE PURCHASED FROM THE CITY CLERK. Exhibit A National City Proposed Wastewater Rates for FY 2004, 2005, and 2006 Sitibie Faintly rg#4:i0ertp MxtIMParn l 110,41000P M6 ile!# or es— OttMtheed 990101#00qn mPOWetcjac ar Components of FY 2004 Rates tutstik7-Family:lResi en obl e;Homes• a mtl ier iaf V40661e: Rateslpe llaf) $uepe, ed rl ds $ r oPI;categ° Inmer:+iat:-" -.. ominorc o INerl u: i Co n etc1.at''fvi&i0.ii: ti#01ne:c at> •CiMed urn Co.m era al'" tree p aoP 420 PP 60PPJ 00: pP ;1. 2H Rate Components Exhibit A National City Proposed Wastewater Rates for FY 2004, 2005, and 2006 Comparison Residential Flat Rates to Commercial/Industrial Users NCF`:Per Marail HCF FY00/01 Rate Case--> Single Family Residence $ ngle:Family Flat #date Commercial - Low Commercial - Medium Low Commercial Medium Commercial - Medium High Commercial High: 6s67 9:54:;: 4 -HCF FYO310:4.Rate;Ca$a ... 3 Year:Total HCF FY00/01::Rate:Case--> Multi Family Residence:: Multi=Famity. Flat -Rate Commercial Low:::.: -Commercial— Medium.:Lo-w Cflmmercial Nle�i�um Gorrlmercial ommercial Medium High;::;; HCF FY00/01 ` Rate: Case -- Mobile: Homes Motile. Home Flat=Rate Commercial-- Low" C©mmere[al Medium: Law::... Comtrlercial L Medium Commercial- Medium High Commercial High;::: 17;68 $':.:: 26`61. 3462 08. $ 6 00 :::: $ 27 19:: $ 1142 ;_: $ . 29.4$::. 11 80:. ... 36;63. ; $ 14.22 $ 43.88 $ 17,27 $ 54,86:' $ 20,24' 37% 69% 67% 63% 65% 58% 16,00 78% 73% $' 23 76:: 64% HCF Aer Month 6'22: '16'€48 2090. 3228 1..: 44 1 i24 $ :'' 1 ;72 ,:.. 2d;45.. 8 . HCF FYd3f04Rate;-Case 19,00°. $ • 4,00 27% 46% $ 21,89 $ 2949 35:33" ,$ 44.16 11.88 44°Ja 41afo : 42% 37410 3 Year Total:'::': $.. ...............57% $: $.28......52% $'. 12 81:.> , 49%A HCF Per -Width 4:: HCF FY03/04 Rate:Case . 17.50; $ 18,97 $ 8 53 :.. 84%' 82% $ 23.58: $ :.::.. 10 34:'';' 789Ia 28;24 $ 12.52 80'to $ :::. 35.31';: $ 14.86 - 73% 3 Year: Total.:_ 10 00'>° :830 90%n 88% 11.$7:';: $5% 1437:::::87% $. 1 `713::::: 79.. Exhibit A National City Proposed Wastewater Rates for FY 2004, 2005, and 2006 Comparison Residential Flat Rates to HCF FY00/01 Rate Case--> Single Family Residence Single Family Flat Rate Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High HCF FY00/01 Rate Case--> Multi -Family Residence Multi -Family Flat Rate Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial High HCF FY00/01 Rate Case--> Mobile Homes Mobile Home Flat Rate Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial High HCF Per Month 6.67 9.54 <--HCF FY03/04 Rate Case 9.54 <--HCF FY03/04 Rate Case 9.54 <--HCF FY03/04 Rate Case 3 Year Total $ 1.6.08 $ 22.08 $ 6.00 37% $ 28.08 $ 6.00 27% $ 32.08 $ 4.00 14% $ 16.00 78% $ 16.07 $ 27.1.9 $ 11.12 69% $ 27.57 $ 0.38 1% $ 28.91 $ 1.34 5% $ 12.84 75% $ 17.68 $ 29.48 $ 11.80 67% $ 29.86 $ 0.38 1% $ 31.29 $ 1.43 5% $ 13.61 73% $ 22.41 $ 36.63 $ 14.22 - 63% $ 37.21 $ 0.58 2% $ 39.02 $ 1.81 5% $ 16.61 70% $ 26.61 $ 43.88 $ 17.27 65% $ 44.65 $ 0.77 2% $. 46.75 $ 2.10 5% $ 20.14 72% $ 34.62 $ 54.88 $ 20.24 58% $ 55.90 $ 1.04 2% $ 58.38 $ 2.46 4% $ 23.76 64% HCF Per Month 6.22 7.68 <.-HCF FY03/04 Rate Case 7.68 <--HCF FY03/04 Rate Case 7.68 <--HCF FY03104 Rate Case 3 Year Total $ 15.00 $ 19.00 $ 4.00 27% $ 23.00 $ 4.00 21% $ 25.00 $ 2.00 9% $ 10.00 57% $ 14.99 $ 21.89 $ 6.90 46% $ 22.20 $ 0.31 1% $ 23.27 $ 1.07 5% $ 8.28 52% $ 16.48 $ 23.73 $ 7.25 44% $ 24.04 $ 0.31 1% $ 25.19 $ 1.15 5% $ 8.71 50% $ 20.90 $ 29.49 $ 8.59 41% $ 29.95 $ 0.46 2% $ 31.41 $ 1.46 5% $ 10.51 48% $ 24.82 $ 35.33 $ 10.51 42% $ 35.94 $ 0.61 2% $ 37.63 $ 1.69 5% $ 12.81 49% $ 32.28 $ 44.16 $ 11.88 37% $ 45.00 $ 0.84 2% $ 47.00 $ 2.00 4% $ 14.72 43% HCF Per Month 3.94 6.14 <.-HCF FY03/04 Rate Case 6.14 <--HCF FY03/04 Rate Case 6.14 <--HCF FY03/04 Rate Case 3 Year Total $ 9.50 $ 13.50 $ 4.00 42% $ 17.50 $ 4.00 30% $ 19.50 $ 2.00 11% $ 10.00 83% $ 9.50 $ 17.50 $ 8.00 84% $ 17.74 $ 0.24 1% $ 18.60 $ 0.86 5% $ 9.10 90% $ 10.44 $ 18.97 $ 8.53 82% $ 19.22 $ 0.25 1% $ 20.14 $ 0.92 5% $ 9.70 88% $ 13.24 $ 23.58 $ 10.34 78% $ 23.95 $ 0.37 2% $ 25.11 $ 1.16 5% $ 11.87 85% $ 15.72 $ .- 28.24 $ 12.52 80% $ 28.74 $ 0.50 2% $ 30.09 $ 1.35 5% $ 14.37 87% $ 20.45 $ 35.31 $- 14.86 73% $ 35.98 $ 0.67 2% $ 37.58 $ 1.60 4% $ 17.13 79% National City Proposed Wastewater Rates for FY 2004, 2005, and 2006 Residential Flat Rates (per month) Current Rate Proposed 04/05 Rate 05/06 Rate Monthly 03/04 Rate Monthly Monthly Monthly Single Family Residence $ 16.08 $ 22.08 $ 28.08 $ 32.08 Multi -Family Residence $ 15.00 $ 19.00 $ 23.00 $ 25.00 Mobile Homes $ 9.50 $ 13.50 $ 17.50 $ 19.50 Commercial Variable Rates (per HCF) Suspended Solids/BOD Suspended Solids/BOD Strength Category Strength Range Commercial - Low <200 PPM $ 2.41 $ 2.85 $ 2.89 $ 3.03 Commercial - Medium Low 201 to 280 PPM $ 2.65 $ 3.09 $ 3.13 $ 3.28 Commercial - Medium 281 to 420 PPM $ 3.36 $ 3.84 $ 3.90 $ 4.09 Commercial - Medium High 421 to 660 PPM $ 3.99 $ 4.60 $ 4.68 $ 4.90 Commercial - High > 600 PPM $ 5.19 $ 5.75 $ 5.86 $ 6.12 onents of FY 2004 Rates Rate Components Residential Flat Rates (per month) Total Proposed 03/04 Rate Metro Treatment Cost Clean Water Cost Collection System Cost Single Family Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCF) Suspended Solids/BOD Strength Range <200 PPM 201 to 280 PPM 281 to 420 PPM ' 421 to 660 PPM > 600 PPM $ 22.08 $ 19.00 $ 13.50 $ 2.85 $ 3.09 $ 3.84 $ 4.60 $ 5.75 $ 18.11 $ 15.58 $ 11.07 $ 2.34 $ 2.60 $ 3.38 $ 4.16 $ 5.41 $ 1.32 $ 1.14 $ 0.81 $ 0.17 $ 0.16 $ 0.15 $ 0.16 $ 0.17 $ 2.65 $ 2.28 $ 1.62 $ 0.34 $ 0.34 $ 0.31 $ 0.28 $ 0.17 Suspended Solids/BOD Strength Category Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High Low Income Alternatives and Subsidy SANDAG Assumptions: Housing Units Type Housing Units By Type Vacancy Factor Housing Units Adjusted For Vacancy Factor Persons Per Household Single Family Multifamily Mobile Home 8,024 7,076 322 3% 2% 3% 7,783 6,934 312 3.71 3.01 4.01 Total 15,422 15,029 SANDAG Assumptions: Household Income Range of Income Less than $10,000 $10,000 to $19,000 Total Households 1,951 2,813 Percent of Total Households 13% 19% Total 4,764 32% Note: Median household income is $29,980 HUD defined low income is $22,350 Adjusted SANDAG Assumption: Low Income Housing Units Type Housing Units By Type Vacancy Factor Housing Units Adjusted For Vacancy Factor Persons Per Household Single Family Multifamily Mobile Home 2,568 2,264 103 3% 2% 3% 2,491 2,219 100 3.71 3.01 4.01 Total 4,935 4,810 Low Income Alternatives and Subsidy Monthly Rate Reduction Per User Class At Various Percentages Subsidy Level % Per month 20% 25% 30% Single Family Multifamily Mobile Homes $ 4.42 $ 5.52 $ $ 3.80 $ 4.75 $ $ 2.70 $ 3.38 $ 6.62 5.70 4.05 Annual Revenue Loss Single Family Only All Residential Users $ 132,123 $ 165,004 $ 197,885 $ 321,846 $ 380,839 $ 414,525 Additional Charge Per User Per Month/HCF Required to Fund Subsidy Proposed 20% SF 30% SF FY03/04 Only 20% Total 25% SF Only 25% Total Only 30% Total Additional Charge for Subsidy Residential Flat Rates (per month) Single Family $ 22.08 $ 0.57 $ 1.40 $ 0.72 $ 1.65 $ 0.86 $ 1.80 Multi -Family $ 19.00 $ 0.46 $ 1.12 $ 0.58 $ 1.33 $ 0.69 $ 1.45 Mobile Homes $ 13.50 $ 0.37 $ 0.90 $ 0.46 $ 1.06 $ 0.55 $ 1.16 Commercial Rates (perHCF) Low $ 2.85 $ 0.06 $ 0.15 $ 0.07 $ 0.17 $ 0.09 $ 0.19 Medium Low $ 3.09 $ 0.06 $ 0.15 $ 0.07 $ 0.17 $ 0.09 $ 0.19 Medium $ 3.84 $ 0.06 $ 0.15 $ 0.07 $ 0.17 $ 0.09 $ 0.19 Medium High $ 4.60 $ 0.06 $ 0.15 $ 0.07 $ 0.17 $ 0.09 $ 0.19 High $ 5.75 $ 0.06 $ 0.15 $ 0.07 $ 0.17 $ 0.09 $ 0.19 Additional Charge Per User Per Month/HCF Required to Fund Subsidy Proposed 20% SF 30% SF FY03/04 Only 20% Total 25% SF Only 25% Total Only 30% Total Percent for Subsidy Residential Flat Rates (per month) Single Family $ 22.08 2.6% 6.3% 3.3% 7.5% 3.9% 8.2% Multi -Family $ 19.00 2.4% 5.9% 3.1% 7.0% 3.6% 7.6% Mobile Homes $ 13.50 2.7% 6.7% 3.4% 7.9% 4.1% 8.6% Commercial Rates (per HCF) Low $ 2.85 2.1% 5.3% 2.5% 6.0% 3.2% 6.7% Medium Low $ 3.09 1.9% 4.9% 2.3% 5.5% 2.9% 6.1% Medium $ 3.84 1.6% 3.9% 1.8% 4.4% 2.3% 4.9% Medium High $ 4.60 1.3% 3.3% 1.5% 3.7% 2.0% 4.1% High $ 5.75 1.0% 2.6% 1.2% 3.0% 1.6% 3.3%