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Home My WebLink About0315.000.. ell - ·'-... " .. ~ _. May 24" 1990 THE HO~ORABLE CITY COUNCIL Palo Alto. California , . , f Attention: Finance and Public Works Committee wastewater collection Rate rncr.ease Members or tha Council: ~ d-92 OU~iog F~ 1989-90" rl$~ng operating costs in combination with a decline in revenue are. expected to adversely affect the finar:cial. condition of the Wastewater Fund. In order to avoid a revenue shortfall in t.his fund .. staff recommends approval of a $1" 7 0'0 "C'OO revenue increase effective July 1" 1990. " .. B3cltgrouM To comply with the City Charter and the conditions of the City's Advanced waste Treatment FacilLty construction Grant" ~astewat~r rates are established annually to cover operating and capital costs" plus maintain a no&inal reserve for system improvement. The primary ratemakinq objective in establisbinq wastewater collection rates is that the rates ~e designed to offset the Utility's expenditures" thereby allovi1l9 tbe utility to break even. Secondly. customers are to be billed on the basis of cost of-servIce under a rate structure which reflects the quantity and quality of efflaeDt. For residential customers" a flat rate structure aoeomplishes these qoals. For non-residential customers" a rate based on the quantity and, in some cases, qual ity of seW'age is employed~ Sewage quantity charges are based on water usage. This linkage ~f yater usage with sewage charges bas important ramifications for the financial health of the Sewer Fund during F~riods of de~rea$ed water usage such as presently exist. CMR:1l5: 0 1 •. ~. . to; -'$> -::~ "'''; ~.":., " >'. ( .' , " , . .. , .~ . liVIl - . , ' .. _ _ __._ ~_., ___ -l-__ _ 2 Discussion of Proposed Rate Increa~~ A review of tt~e FY 1990-511 Freliminary Annual Budget indicates that Palo Alto's share of the Water QUality Control Plant Operation and capital e~penditures are expected to increase. In .eddition, with the bond fl!nds beinq fully utilized, the rate revenue .ust fully supply the s~pport for the collection system augmentation and rehabilitation. Besides these expenditures, the wastewater Collection System will experience a SUbstantial decline in non-residential revenue as a result of reduced -water consumptIon during FY 1990-9). Approximately 5S percen~ o~ the wastewater revenue is collecteQ from non-residential customers via a sewage rate calculated on their vater usage. As customers respond to the current drougbt by reducinq 'Water usage .. sewer revenue will bE adversely impacted~ Therefore, a rate adjustment is necessary to maIntain an appropriate revenue level from these customers SUfficient to meet operating needs~ A final rbason for this rate increase is to begin to restore the depleted System Improvement Reserve to a minimum level. wastewater Rate Increase Proposal In order to allow the wastewater Fund to break even next fiscal year .. a rate increase is pr~sed commencing July 1, 199~~ This wIll p:t"oduce an est.i.ated $1.70'0.00.0 in additional revenue. This rate adjostment was spread among the customer classes, Increasi~9 Rate Schedules 5-1 a~ S-2 to recover the appropriate revenue requirement from each Rat.e Schedule. Because of the direct connection between non-residential vater usage and sewer revenue collected, Rate SCbedule 5-2 bas necessdrily received a significantly higher percenta~e of increase than Rate SChed'ule S-1 which is merely a flat rate~ The revenue i~re~se is proposed to be 16\ for residents and approxi~ately 'S\ for non residential customers~ TG the extent non-residential customers respond to the drought by cutting back their vater usage as expected~ the overall dollar amount of their sewer bill will approach a perce.!1tage increase. closer to 16 percent. The t.able below indicates the impact of this proposed increase: CMR:31'>:O • • , ", .. . -.-, ~ ..J"-.. : .. --,-':-::""-. ,c' - • > " , , _.....:..-____ '_-~:;,; :'-'''-_0 3 Proposed: Jtate Increase PeI"Cent Per Month __ Per Month Ch.)nge ResIdential $10.M $1.40 16.3 Restaurants.: $/CCF water tlsed 3.40 1.10 '7.S COllUI1ercial and Industrial $/CCF 1. 75 .57 4S.3 of water used It. comparison of Palo Alto's proposed wastewater collection rates with t.hose charqed in nearby communities is sbo'WIl belo.... This comparison indicates that Palo Alto's wastewater Collection rates are not competitive_ as its commercial rates are higher than the three cities surveyed. Staff intends to return later in the year with suggestions as to how t.he rates can be brought more into line with that of neighboring jurisdictions. Commerciall Effective Re:;;:,idential R~_tail (~lccU ___ oate_ Palo Alto $lO.M $ 1. 15/CCF 7-1-9() Menlo Park 12.11 l.ll/CCF 7-1-9() Mou...nt.ain View S.S5 1.2l/CCF 6-1'9() 1.os Altos 1(1.00 N/A 7-1-'3() FinallYr some minor changes to Rate Schedule 5-2 are proposed, including the addition of a Charge tor toxic metals, to more accurately reflect our costs and provide incentives for metals red'.JCtions. CMR:1l5:() , ., 1 t ., ;''' > 1; , ! . .'':;'1. ~:." , .-.- --; . " o o Staff recommends that Council adopt the attache1 Resol~tion revising wastewater Rate SChedules 5·1, S-2 and 5-3 eff€ctive July 1. 1990. Respectfully submitted, -t'<-, A~' ~4'J.-... v. RANDOLPH riALOOC!ruN Manaqer~ Rates and Regulati~s Attachments CMR:l15:0 " • - ..... ~-' ..," ';.-( , ,". ' .'.' RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SCHEDULES S-l~ S-2~ AND 5-) OF THE CIT¥ OF PALO ALTO UTILITIES RATES AND CHARGES PERTAIN ING TO SEWAGE COLLECTION~ DISpOSAL AND RELATED SERVICES -"--'------ the Council of the city of Palo Alto does hereby RESOLVE as follows: SEctION 1. Pursuant to s~tion 12.20.010 of the Palo Alto Municipal cOt!e ... SChed,ule S-l (Domestic Was.tewater Collection and Disposal). Schedule S-2 (commercial Wastewater Collection and Disposal). and S-3 (Industrial Waste Laboratory and Analysis Charges) of the Palo Alto Utilities Rates and Charges is hereby amended to read as shown on Sheets S-1-1~ S-2-1. S-2-2. and S-3-1 atta,ched hereto and incorporated herein: SECTION 2. This Cou,ncil finds that the revenue derived from th';-authorized adjustment:s of electric rates by the City Manager shall be used only fo~ the purposes set forth in the Falo Alto City Charter. Article VII. Section 2. entitled ·Public Util ities Revenue .. • The adoption of this Resolution is. therefore. specifically exempt:ed under the Public Resources Code Secticn 210,aO!b) (8) from the requirements of C£QA. SECTION" 1. The foregoing changes shall become effective Jul~ l~ 19'90. INTROOOCED ,"~D PASSED: AYES, NOES:: ABSENT: ABSTENT10N"S, ATTEST: APPROVED: Mayor APPROVED AS 10 FORK: Acting City Attorney Director of Finance Director of UtilitIeS""- acb: 05/1«/90 APPtlCABlLrn, DOMESTIC WASTEWATEl COllECTION AND ~1Sl'OSAl \DIlIILMU SCHEDUlE S·I T~ls ~~eduTe applies to eac~ occupied domestic dwelling unit. JERRITORY, WiUim tf'te 'incorporated limits of th~ Cit.1 of Palo A.1t0 and on land owned or le~;ed by the CitI. RATES: Per_ M'o_nth (~(' domestic dwelling unit .• r • ~ ~ •• ~ ~ ~ • ~ ~ • _ * _ • ~ _ $10.00 SPEC I Al HOTES: An oc(upied domestic dwelling 1S designated as any house. tottage, flit~ duplex unity or apartment unit baving titcheR. bath~ and sTeeping facilities an~ to w~i'h util"ities. sen-lces are being rendered~ Any dwell ing unit being fndiYiduaHl served by gas or ele<:trfc meter 'Wi 11 be <:onsfdered is ccntinuousl, occup;ed~ for any dwelling unit being serlted by more tnan one -wastewater connection, the w,onthT, c~arge ~11) be applied ta each connection. ------.. -.- tlTl Of PALO ALTO UTiliTIES Issued by the CitJ (ouncil Supersedes S.heet Nc. 5-1-1 dated 1-1-a~ ---.----.----- Effect;" 7-1-90 5heet No. S·I-1 , . .. . , .' . ,--"':--' G COMMERCIAL WASTEWATER ~OllECTlOM AND DISPOSAL ~IlULL1<A1[ SCHEDUI E 5-2 APPUtABIUH: This sc.hedu1e applies to ,all establishments otfler than domestic dwelling units. HRJ!IT~RY: Witnl~ the incorporated limlts of t~e City of PalQ Alt0 and on land cwned or leased by the City. RATES: ~il;mum cnarge per connection peT month .• _ ~ __ ~ _ • _ • ____ • _ $10.00 Q.l.lantit)' Rates: Based O~ metered ~~teT, per 100 <ub\c f€et .. ____ _ S 3.40 ~ estaUt$;~;nent '.!Hsc"a.rg~ng s~_~~ ___ ia .excess .of 2.L.Q~_i!_ll9J"s. of qual i tv <equj ...... ler,t Qf ______ ~ew __ ~9.Uer day is determ.l.ned by metered -water __ '!-~~_9..e and samntns..,.. (ollection System Operitioo~ Mai~tenance, and lnfiltration Inf1aw 5536_00 per mi1iio. g.llons ISO_48 per 100 ~ubic feet of metered water). Advan'...pd llaste Treatmer,t OperatiGns and ~ill!tenar.ce Charge IS~7.00 per ~i11ioo sa110ns (SO.42 per 100 cubic feet of metered ~ter). 1 131_o0 per 1000 pounds of COO 1 279.00 per 1000 pounds of 55 S 1,750.00 per 1000 pounds of NH, 110,000.00 per 1000 pounds of toxics· *Toxlcs include su~ cf (~romlu~, <opper9 cyanjde~lead~ ~lckel; silver and zinc. Mi~imum Charge per connection per mont~ • _____ •.. ___ . __ Ouar-,titJ Rdtes: tlils-ed on metered IrII'at€:r per 100 cubic feet. ___ •.• __ . _ CIT~ Of PALO ALTO YTIllTIES Issued by the (;t~ Council $I~.OO S ].75 Effective 1-1-90 Sheet No. S·l-) ........... -. --.. - ,-'0 ,,-, '!'~ ..... --' , . I , o illNTI NUED) Disc~arger's oJ.J!.r!_rT!etered CQ(ltamrnated tir"_cundwater o .\ --;;-~. ' .' \, - • COMMERCIAL WASTEWATEl COlLECTION AND DISPOSAL lIilllHRAJE Sl:HEDJl [ $-2 .,' , " , , Quantit.J Tates fof' collection and treatment of ttle contamfnated groundwater ldl1 be based' on the same rates applica:'1e to metered ~sege fof' customers discharging less that') lS,OOO gallons of s~wage per day. Industrial Vaste Discharge _fee A fee of $500 will be reQ.ufred for the issuance of an lndustrial Dis-cllnge Pemit .. includlDQ an1 £xceptional Waste Permits. This fee may be reJuced to S100 fof' a one time ~atc~ d;~harge per~;t. SPEtlAL NOTES, Upon applicatlofl frOnl estabTfsnments mafrnhining extens;\I€ irrigation lanrl's..caping .. the monthlJ charge will be based u~an the a\lerag~ water ~sage for tne months of January~ February and ~arc'. Sewage metering facilities may be required, ;, ~lc~ case servicE will be governed by terms ~f a s~ecfil agreement. C~arges for large di>c~arges (25,000 gallons per day or greater) will be determined Dn the basis !:If sampling is outlined h Utllitfes Ru1e and ~egulaUon 23(. Annual charges 111;11 be deterillined and a,11ocated IOOnt"l.J_ CITY Of PALO ALTO UTILITIES rssued by tne CitJ Council Supersedes S~eet No. 5-2-2 dated 1-1-89 Effective ]-1-90 Sneet No. S-2-2 .. . <, l l . , /::,-t' , ''';':'-.. APPlIUBIUH: 1~1~ schedule applfes tQ ill industrial ~stes. JERRITORV: ·'. ' .. INDUSTRIAL WASTE lAiORATORV ~D AIloIllSlS CHARGES UTlLITYMIL$(;HfDUlE S-3 , \ Vithilll the service arei 0f the (;t.1 of Pa10 Alto and on land ownEd or Teased by the Cit,. RATES: I. wastewater AtbUnis! Ana1yses ~adE tQ determine compliance with Pil0 Alto ~unic,pal Code s~al1 be c~arged at rates equlwalent to those charged to Palo Alto by lts contract laboratory. A S35. admiDfstrative fee sl1a11 be added per sample for those samples ana1yzed by Pi1~ Altats contract labofdtnry. (Ill Of PAu) ALTO UTILITIES Issued bj the tit, [ouncil Supersedes Sheet No. Il~.lb dated 7-)·89 Effective ]·1-90 Sileet No. 5·]·1 ,....., ~'\, " .. " .. .