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Home My WebLink About0284.093April 19, 1993 ~riE HONORABLE CITY COONCIL Palo Alto l california Attention: Finance Committee Proposed wastewater cg}lection Rate Increase Members of the council~ Report in ~ This report recOmEends Council approval of the attached resolution to increase Wastewater Collection revenue 9.9 percent or $829,000 effective July 1, 1993. This increase represents the first of two rate adjustments planned to finance the Infrastructure Project. Background To comply with the City's Charter and the conditions of the Advanced wastewater Treatment Facility construction Grant mandated in 1979 (CMR:445:79), the wastewater revenue requirement is set at a level to allow the: utility to break even. Rates are established to recover operating and capital costs and to maintain a prudent reserve level for the system imyrovement. A revie.r of the Wastewater Collection sub fund financial obligatio~s over the next two rears indicates that a signific~nt rate increase of approximately 24 gercent would be necessary in FY 94-95 to finance the Infrastructure Project. Capital expenditures will rise from approximately $1.6 million in FY 1993-94 to $4.5 million in FY 1994-95. In order to lessen the impact of this large rate increase, staff recommends that the 24 percent be split into two smaller rate increases, a 9.9 percent in FY 1993-94 and a 12.2 percent in FY 199~-95. Applic.ation of the Proposed wastewater Rc;:t'te In.<:;: __ ~ The $829,000 or 9.9 percent across the board as all Infrastructure Project. The CMR:2S4:93 ----.. -. _._ .. , ;L revenue increase is spread uniformly customers viii benefit from the following table indicates the impact c-n.·-·····-.,.:':-' -.-, , -~ ~: . --; - o of this proposed increase. Proposed Dollar Rate Ir:.cr-ease Percent ~Ol}_t_!l ESl:t l10nth ~han;.§ p.eeidential $13.29 $1. 25 9 .• Restaurants $/CCF used 5.44 .49 9.9 Cammer-cial $/CCF Used 2.80 .25 9.8 Comparison with O~r Cities A comparison ot Palo Alto's proposed waste~ater collection rates ~ith those charged in nea=by communities is shown belo~. Some ~f these rates are proposed rates ~r.ile others are in the process of being r-evised~ 'I'his comparison indicates that Palo Alto's Wastewater collection rates are marginally competitive. This subj ect was addressed in some deta i 1 in 1 ast yea r' is report ~Proposed Wastewater Rate Increase (CHR 255:92).-For information purposes, a section of that report is reproduced here: Mountain View earns over $1 million annually frcm its reserves, which helps to keep its rates approximately 14 percent lower than ~ould otherwise be the ca3e. Palo Alto earns $60,000. Mountain View has the advantage of a high mixture of apartment dwellings which are billed separately for se~er. Palo Alto has dpproximately 24,000 domestic dwelling units compared to 40,000 units in Mountain Viev. The Wastewater Collection System in Palo Alto is more mature than system£ in surrounding areas. Palo Alto Menlo Park Redwood city Mountain View Sunn}'Vale CXR:284=!3 Wa~tewate~~ll Comparison Commercial Residential Ret_ail_~ $13.89 $2.80 15.50 1. (;8 16.11 1. 78 10.45 1. 52 13.66 1.10 Effective l1ll.~ 7-1-93 7-1-92 7-1-9) 7-1-92 7-1-92 • ... .:., . ....... ~.".."r.~'\~ c:qs-$'~~~ " .~~~ ~ ", '"~~~s.l:"~~ " --," sf u. Recommendations staff recolll!llends that Cour,cil adopt the attached Resolution revisinq wastevater Rate Sche~ule5 5-1 and S-2 effective July lr 199), Respectfully submitted, 1.--11 _ ~~~~/ Lucie Hirmina U~f;;;;;?st Edward J. Krizek rn\erim Direc utilities I' Attacrunents.; Resolution Rate schedules S-l and 8-2 .,: RESOLUTION NO. RES0Lf..;"TION OF THE COUNCIL OF THE CITY OF PALO AL'I'1) A.t.mNDING T.iTILITY RATB SCHEDULES S - 1 A.."ID S -2 OF THE CrTY OF PALO AVre UT.l!..ITIES RATES A..I\ffi CHARGES PERTAINING TO WASTS"NATER COLLECTICN WHEREAS, the Council has consice:ced the r.eed fo::-an adjustment to wastewater collection rates; NOW, THERE FORB , the Council of the City of Palo Alt0 does hereby RESOL\i'E as follows: ~ION _1... Pun;'..lant to Section 12 .2D. 010 of the Palo Alto M-... micipal Code, Utility Rate :schedule S-l (Domestic Wastewater Collection a::ld Disposal). and Utility Rate Schedule S-2 (Ccrr-!r'.'2.rcial Wastewater Collection and Disposal) 0: the Palo Alto Utili ties Rates and Charges are hereby ame~ded to read in accordance with the sheets captioned "Utility Rate Schedule S-1-1," "Utility Rate Schedule S-2-!z'" and 'Utility Rate Schedule S-2-2/" attached heret.o and incorporated herein by this referen~e. The foregoing Utility Rate Schedules shall become effective on July 1, 1993. SE:.;i:"IQN 2. "n"IE Council finds that the revenue derived from the authorized adjustments of wastewater collection and disposal rates by the City Manager shall be used only for t.he purposes set forth in the Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 3. The Council finds that the adoption of this resolution is exempted under the CEQA G1..lidelines under Section 15~73 of Title 14 of the California Code of Regulations. INTRODUCED A-"lD PASSE'D: AYES, NOES: ABSENT; ABSTENTIONS; A'ITEST; APPROVED: City Clerk Mr"lyor P-..PPROVED 105 TO FORM: City ~.a.r.ager Senior Asst. City Attorney Director of Finance Director of Utilities -------- ·~,,~,:=:: .' 'I~~,'j .. I.!,_"_·;.;~;,~ .. ··,,' .... '!!iHlIII!(IiI.I~,J .. !I"iII","','!lO¥.".,;._"_.-..,... ___ r. __ " -__ • -.iir: A. APPLICABILITY: DOMESTIC WASTE'N".TER COLLECTION AND DISPOSAL 11I!l.L'1Y-RATE SCHEDULli:1 This schedule appnos te each occupied do",eslic dweillng unit 8, TERRITORY: WIthin tI'.e incorporated limits of the City at Palo Ana and on land owned or leased by the City. C. RATES: Per Month Eac.1 domestic dwelHng unit . , .................... $13.89 D. SPECIAL NOTES: 1. An occupied domestic dwel:'ng is designAted as any house, cottage, flat, duplex unit, Of apartment unrt having krtchen, bath, and sleeping facilities and t,~ which L1iftties services are being rendered. 2. Any dwelling unit being individually served by a w"ler. gas, or electric meter will be considered as continuously occupied. 3. For two or more oocupfed dwel!ing units served by one water meter, t1e monthly wastewater charge wi\! be calcuiated by l7lurfip\ying the current wastewater ra!e by the number of dwefling units. 4. Each developed separaie lot shall have a separate service laWai to a sanitary main or manhole. CIlY OF PALO ALTO UTILITIES Issued by the City Council Supersades Sheet No. S-1-1 dated 7-1-92 Effective 7-1-93 Original Sheet No. 5·1·1 ~~ ~~~--~-~ -~~~----------- COMMERCiAL WASTEWATER COLLECTION AND DISPOSAL @LllY RAIE SCHEDULE S·2 A. APPUCA9IUTY: This schedule applies to ail estabnshments other than domestic dwelling untts. 9. TERRITORY: Within the iflco'porated limits of the Crty of Palo A.~o and 00 land owned or leased by the Crty. C. RATES: 1. Aestauren~ (Al Minlmum charge per conrJection per month ............. $13~89 (6) Quantity Rates: Based on metered water. per 100 cubic teet . ~ . . . . . . . . . . . . . . $ 5.44 2. Anustabfishment disch.2rQ.fn9 sewage in exc.ess Qf~.JXX:) Qa~lons or Quality .equivalent of sewage per day as .d~rmined by metered wa.t~_sagB and samp li09..o (Al Co!"eetion System Operation. Maintenance, and Infiltration Inflow: $1,153.00 per mililon gallor,s (SO.86 per 100 cubic teet of metered water). (8) Advanced Waste Ireatment Operations afld Maintenance Charge: $870.00 per million gaiians (SO.65 per 100 cubic feet of metered water)~ (C) $ 192.00 per 1000 pounds of COD (0) $ 41 Q.OO per 1000 pcurods of SS (El $ 2,559.00 per 1000 pcuflds of NH, (F) $12,078~00 per 1000 pounds of toxics' -Toxies include sum of chromium, copper, cyanide, l.eac. nickel, sHver and zinc. CITY OF PALO ALTO UTILITIES Issued by Ihe Crty Council Supersedes Sheet No~ $·2-1 daled 7· 1 ·92 Effective 7·1·93 Sheet No 5-2-1 , ' - /'. '. COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL J..!]lJ.I.IY RATE SCHEDUU= 5·2 (Continued) 3. A~ Other Establishments (A) Minimum CI1arge per coonection per month $13.89 (8) Ouantity Rates: Based on metered water per '00 cubic leet . . . . . . . . . . . . . . . . . . $ 2.80 D. SPECIAL NOTES: 1. Upon appfication from establlshments maintaining extensive irrigated landscaping, the IT1OI1thly charge will be based upon the average water usoge lor the months 01 January, February and March. If a water meter is identified as exclusively serving irrigatioo larldscaping, such meter wiit be exe mpted from sewer charge calculations. 2. Sewage metering lacil~ies may ba required, in which case service will be gcvemed by terms of a special agreement 3. Charges lor large dlscharges (25,OCO gallons per day or greater) will be detenmined on the basis of sampr.ng as outlined in Uti!nies Rule and Regulation 23C. However, lor purposes of arriving at an accurate flow estimate, discharge meters, ff installed, can be ~ilized to measure outflow for billing purposes. A'mual charge s wi!1 be determined and allocated monthly for billing purposes. 4. Dischargers of Unm~~ered Contaminated GrouDQwster Quantity rates for coilection and treatmer,t Of the contaminated grourldwater will be based on the sa,ne rates applicable to metered usage to( customers discharging less than 25,OCO ganons of sewage per day. Discharge permns are issuea by tihe Environmental Compliance Manager at the Water Quality Control Piant, 2501 Embarcadero Way, Palo Alto. 5. Jodli!itnal Wasta Discharge F~~ A fee 01 $500 will be required for tne isscance of an Industrial Discharge Permtt, including any Exceptional Waste Perm~. This fee may be reduced to $100 for a one-time batch discharge perr'ltt. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. S·2·2 dated 7·1.92 Effective 7"·93 Sh~et No 5·2·2