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Home My WebLink About2003 07-08 CC ADJ AGENDA PKTAGENDA OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CITY COUNCIL CHAMBERS CIVIC CENTER 1243 NATIONAL CITY BOULEVARD TUESDAY - JULY 8, 2003 - 9:00 A.M. OPEN TO THE PUBLIC ROLL CALL . An Ordinance of the City Council of the City of National City establishing sewer service charges for Fiscal Years 2003-04, 2004-05, and 2005-06. PUBLIC ORAL COMMUNCICATIONS (Five -Minute Time Limit) NOTE: Pursuant to State Law, items requiring Council action must be brought back on a subsequent Council agenda unless they are of a demonstrated emergency or urgent nature. ADJOURNMENT Next Regular City Council Meeting — Tuesday, July 15, 2003 — 6:00 p.m. — Council Chambers, Civic Center TAPE RECORDINGS OF EACH COUNCIL MEETING ARE AVAILABLE FOR SALE AND TO LISTEN TO IN THE CITY CLERK'S OFFICE MEETING DATE (-ITEM July 8, 2003 ITEM TITLE AN ORDINANCE TO ESTABLISH A SEWER RATE CHANGE IN EACH OF THE NEXT THREE FISCAL YEARS 2004, 2005, 2006 PREPARED BY Stephen Kirkpatrick DEPARTMENT Public Works/Engineering 336-4580 City of National City, California COUNCIL AGENDA STATEMENT EXPLANATION See attached explanation. AGENDA ITEM NO. 1 • Environmental Review N/A Financial Statement Approved By: The burden of the increased rates will fall on all the sewer service recipients. STAFF RECOMMENDATION Adopt the Ordinance establishing the new rtes. BOARD / COMMISSION RECOMMENDATION N/A Finance Director Account No. ATTACHMENTS ( Listed Below) Resolution No. 1. Exhibit A - Proposed Sewer Rates 2. Exhibit B — Rate Comparison Table 3. Proposed Ordinance A-200 (9/99) Explanation: The cost of wastewater collection, transportation and treatment has increased dramatically. Wastewater rates charged to residents and businesses must be increased to keep up with the rising costs. Wastewater rates are proposed to increase over the next three years. The proposed increases are shown in Exhibit A. The current rates generate approximately $4.9M annually. The rates as proposed will generate approximately $6.1 M in FY 2004, approximately $7.0M in FY 2005, and approximately $7.7 M in FY 2006. In FY 2004, the cost of providing wastewater service will total approximately $6..8M, and increase each of the next two years. It will be necessary to augment the wastewater budget in FY 2004 with approximately $700,000 from the Wastewater Rate Stabilization Reserve to cover the cost of wastewater collection, transportation, and treatment. Approximately $540,000 of those funds will be recovered over the. next two fiscal years. Three major factors play a role in the increase in costs that we are experiencing here in National City. They are: 1. The increased amount being charged by San Diego for wastewater treatment. 2. The increased wastewater flow being generated by National City - primarily due to San Diego installing additional and more accurate flow meters. 3. The requirements of the State issued NPDES stormwater pollution prevention permit. All National City's sewage is transported to Point Loma for treatment. The amount being charged by San Diego has increased significantly over the last few years and the increases are projected to continue. The Metro Wastewater Joint Power Authority, of which National City is a member, hired an independent auditor to review the costs being passed on the member agencies. Without exception the auditor concurred with the validity of the costs. All the sewage that is collected by National City is metered by San Diego as it enters their system on the way to Point Loma for treatment. For the last couple of years San Diego has been upgrading all their flow meters. The result for National City has been a significant increase in the flow and consequent charges for treatment. In fact, the increase was so significant that we contracted with an independent firm to temporarily install flow meters in series with the San Diego meters to assess the accuracy of San Diego's new meters. Daily flow was measured by National City's and San Diego's meters for several months then compared. The results showed that San Diego's new meters were accurate and the City will be charged more for treatment as a result. Finally, National City operates and maintains its stbrm drain system in accordance with the requirements of the California Water Quality Control Board's NPDES permit. This permit has completely changed the way storm drain systems are operated. In the past the storm drain system was primarily operated and maintained with the goal of eliminating flooding of private property in the event of storms, and somewhat ignored at all other times. Now water quality is a major factor to consider in the operation of the system. As you know the storm drain system transports more than actual storm water. Significant demands are placed upon the City's storm water system by improved properties within the City which are served by the City's sewer system. The California Water Quality Control Board has issued the NPDES permit that very prescriptively describes things the City must do to reduce or eliminate the amount of urban run-off pollution that enters as is carried through the system. These new requirements are very costly. Like many other cities that are subject to the permit, it is proposed that the wastewater fund be used to pay a portion of the costs. Exhibit B is included so that Council can see how the proposed wastewater rates compare with rates that other Metro member agencies in the region are charging. Exhibit B shows the rates being charged for single family service. National City charges a flat rate to residential users, as opposed to a water consumption based rate as is charged Commercial users. This residential billing practice is common when water and sewer are provided by different agencies. Exhibit B lists Agencies that likewise charge a flat rate for residential users, and converts data from Agencies that do not charge a flat rate to an average monthly rate so a comparison is possible. Earlier in the report it was stated that the Rate Stabilization Fund would need to augment next years wastewater budget by approximately $700,000, then recover a total of approximately $540,000 over the following two years. Currently there is approximately $3.0M in the Rate Stabilization Fund. The reason we are proposing the recover of the $540,000 is so the Rate Stabilization Fund maintains a balance of almost $2.9M, as it may be necessary to cover the bad debt that has already accrued. The rates assume that the Rate Stabilization Fund will be expended to cover the bad debt. When the rates are again reviewed for 2006 we will be able to determine how any remaining Rate Stabilization Fund balance be utilized if the collection efforts are positive. Components of FY 2004 Rates Rate Components Residential Flat Rates (per month)Proposed Total 03/04 Rate Metro Clean Water Collection Treatment Cost System Cost Cost Single Family Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCF) $ 22.08 $ 19.00 $ 13.50 Suspended Sol/ds/BOD Strength Range <200 PPM $ 2.85 201 to 280 PPM $ 3.09 281 to 420 PPM $ 3.84 421 to 660 PPM $ 4.60 > 600 PPM $ 5.75 $ 18.11 $ 1.32 $ 2.65 $ 15.58 $ 1.14 $ 2.28 $ 11.07 $ 0.81 $ 1.62 $ 2.34 '$ 0.17 $ 0.34 . $ 2.60 $ 0.15 $ 0.34 $ 3.38 $ 0.15 $ 0.31 $ . 4.16 $ 0.16 $ 0.28 $ 5.41 $ 0.17 $ 0.17 Suspended Sollds/BOD Strength Category Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High Components of FY 2005 Rates Rate Components Residential Flat Rates (per month) Total Proposed 04/05 Rate Metro Treatment Cost Clean Water Cost Collection System Cost Single Family. Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCF). Suspended Sollds/BOD Strength Range <200 PPM 201 to 280 PPM 281 to 420 PPM 421 to 660 PPM > 600 PPM • $ 28.08 $ 23.00 $ 17.50 $ ' 2.89 $ 3.13 • $ 3.90 $ 4.68 $ 5.86 $ 24.01 $ 19.50 $ 15.01 $ 2.37 $ • 2.64 $ 3.44 $ 4.23 $ 5.51 $ • 1.32 $ 1.14 $ 0.81 $ 0.17 $ 0.15 $ 0.15 $ 0.16 $ 0.17 $ 2.75 $ 2.36 $ 1.68 $ . 0.35 $ 0.34 $ 0.31 $ 0.29 $ 0.18 , • Suspended Sollds/BOD Strength Category Commercial - Low Commercial - Medium Low ' Commercial - Medium Commercial - Medium High Commercial - High Components of FY 2006 Rates Residential Flat Rates (per month) Total Proposed 05/06 Rate Rate Components Metro . Treatment Cost Clean . Collection Water System Cost Cost Single Family Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCF) Suspended Sollds/BOD Strength Category Commercial Commercial Commercial Commercial Commercial - Low - Medium Low - Medium - Medium High - High Suspended Sollds/BOD Strength Range <200 PPM 201 to 280 PPM 281 to 420 PPM 421 to 660 PPM > 600 PPM $ 32.08 $ 27,91 $ 1.32 $ 2.85 $ 25.00 $ 21.42 $ 1.14 $ 2.44 $ 19.50 $ 16.95 $ 0.81 •$ 1.74 $ 3.03 $ 2.50 $ 0.17 $ $ 3.28 $ 2.78 $ •0.15 $ $ 4.08 $ 3.62 $ 0.15 $ $ 4.90 $ 4.44 $ 0.16 $ $ 6.12 $ 5.76 $ 0.17 $ 0.36 0.35 0.32 0.30 0.19 Exhibit B Comparison of Single Family Wastewater Rates for Metro Member Agencies 2000 2002 2003 2004 DEL MAR " $ 36.49 $ 51.65 $ 57.62 $ 59.50 CORONADO ** $ 31.64 $ 31.64 $ 31.64 $ 31.64 PADRE DAM " $ 29.45 $ 31.46 $ 32.69 $ 32.69 OTAY . ** $ 28.95 $ 28.95 $ 28.95 $ 28.95 POWAY " $ 25.90 $ 30.10 $ 30.92 $ 30.92 ALPINE ** $ 24.25 $ 24.25 $ 24.25 $ 24.25 SPRING VALLEY ** $ 23.00 $ 23.00 $ 23.00 $ 23.00 LAKESIDE ** $ 22.08 $ 22.08 $ 22.08 $ 22.08 LA MESA " $ 21.25 $ 21.25 $ 28.70 $ 31.57 WINTERGARDENS ** $ 21.17 $ 21.17 $ 21.17 $ 21.17 CHULA VISTA " $ 20.06 $ 20.06 $ 19.00 $ 17.47 LEMON GROVE ** $ 17.08 $ 24.32 $ 30.03 $ 30.03 NATIONAL CITY ** $ 16.08 $ 16.08 $ 16.08 $ 22.08 SAN DIEGO " $ 28.38 $ 29.80 $ 41.31 $ 43.79 ** Flat Rate " Converted to Flat Rate ORDINANCE NO. 2003 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING SEWER SERVICE CHARGES FOR FISCAL YEARS 2003-04, 2004 -05, AND 2005-06 WHEREAS, the costs of wastewater collection, transportation and treatment has increased dramatically, and as a result, it is necessary that rates charged to businesses and residents be increased over the next three years in order to offset said costs; and WHEREAS, sewer service charges are imposed by the National City Municipal Code upon any parcel which utilizes the City's sewer system; and WHEREAS, the cost of implementing the National Pollution Discharge Elimination System ("NPDES") provisions •of the federal Clean Water Act are significant due to the increased demands placed uponthe City's storm water system by improved properties within the City which are served by the City's sewer system; and NOW, THEREFORE, BE IT ORDAINED that in order to offset the costs of wastewater collection, transportation and treatment, and of compliance with NPDES requirements for properties served by the. City's sewer system, the City Council of the City of National City does hereby approve and adopt the sewer service charges for fiscal years 2003-04, 2004-05, 2005-06 as set forth in the attached Exhibit "A", which is incorporated herein by reference, effective as of August 15, 2003. BE IT FURTHER ORDAINED that the City Council hereby declares that should any section, portion or provision of this ordinance or exhibit thereto be determined for any reason to be invalid, it is the intent of the City Council that it would have passed all other sections, portions and provisions of this ordinance independent of the elimination herefrom of any such section, portion or provision as may be declared invalid. It is further the intent of the City Council that if any section, portion or provision declared invalid can be severed from the remainder, or be construed in such a manner as to give valid meaning and effect to the remaining sections, portions or provisions, then it may be so severed or construed so as to carry out the purpose and intent of this ordinance. + + + Signature Page to Follow + + + 7 Ordinance No. 2003 — Page Two PASSED AND ADOPTED this day of , 2003. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, Ill City Attorney Components of FY 2004 Rates Rate Components Residential Flat Rates (per month) Total • Proposed 03/04 Rate Metro Treatment Cost Clean Water Collection Cost System Cost Single Family Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCFF Suspended Sollds/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 $ 0.15 $ 0.15 $ 0.16 $ 0.17 $ 2.65 $ 2.28 $ 1.62 $ 0.34 $ 0.34 $ 0.31 $ 0.28 $ 0.17 Suspended Sollds/BOD Strength Category Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High _ ----- _ Rate Components Total Proposed • Clean Collection Residential Flat Rates (per month) . 04/06 Metro Water System Rate Treatment Cost Cost Cost Single Family. Residence $ 28.08 $ 24.01 $ • 1.32 $ 2.75 Multi -Family Residence $ 23.00 $ 19.50 $ 1.14 $ ' 2.36 Mobile Homes $ 17.50 $ 15.01 $ 0.81 $ 1.68 Commercial Variable Rates (per HCF) • Suspended Sollds/BOD Suspended /B Strength Category StrrengthengthRange Commercial - Low <200 PPM $ • 2.89 $ 2.37 $ 0.17 $ • 0.35 Commercial - Medium Low ' 201 to 280 PPM $ 3.13 $ • 2.64 $ 0.15 $ 0.34 Commercial - Medium 281 to 420 PPM $ 3.90 $ 3.44 $ 0.15 $ 0.31 Commercial - Medium High 421 to 660 PPM $ 4.68 $ 4.23 $ 0.16 $ 0.29 Commercial - High > 600 PPM • $ 5.86 $ 5.51 $ 0.17 $ 0.18 Components of FY 2006 Rates Residential Flat Rates (per month) Single Family Residence Multi -Family Residence Mobile Homes Total Proposed 05/06 Rate Rate Components Metro . . Treatment Cost Clean . Collection Water System Cost Cost Commercial Variable Rates (per HCF). Suspended Solids/BOD Strength .Category Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High Suspended Solids/BOD Strength Range <200 PPM 201 to 280 PPM 281 to 420 PPM 421 to 660 PPM > 600 PPM $ 32.08 $ $ 25.00 $ $ 19.50 $ 27.91 $ 1.32 $ 21.42 $ 1.14 $ 16.95 $ 0.81 .$ 2.85 2.44 1.74 $ 3.03 $ 2.50 $ 0.17 $ 0.36 $ 3.28 $ 2.78 $ .0.15 $ 0.35 $ 4.09 $ 3.62 $ 0.15 $ 0.32 $ 4.90 $ 4.44 $ 0.16 $ 0.30 $ 6.12 $ 5.76 $ 0.17 $ 0.19