HomeMy WebLinkAbout07.b. Receive presentation comparing actual water consumption data with Cost of Service Study (COSS) assumptions re billing rates for school, and consider setting public hearing to reduce sewer service charge for high schoolsCentral Contra Costa Sanitary District 7 be
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: November 19, 2015
Subject: SET PUBLIC HEARING FOR DECEMBER 17, 2015 TO RECEIVE PUBLIC
COMMENT ON AMENDING EXHIBIT "A" TO ORDINANCE No. 285 TO
REVISE THE SEWER SERVICE CHARGE FOR HIGH SCHOOLS
Submitted By:
Thomas Brightbill, Senior Engineer
Initiating DeptJDiv.:
Engineering & Technical Services /
Planning & Development Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION.
D. Gemmell — Planning & Development Services Division Mgr
JM. Petit — Director of Engineering & Technical Services
MOL
Kent Alm �
Counsel for the Distr t
ISSUE: A public hearing is required to amend a District Ordinance.
/_41 .wt(' ) W
Roger S. Bailey
General Manager
BACKGROUND: At the June 4, 2015 public hearing to adopt Ordinance 285 Schedule
of Sewer Service Charge Rates (uncodified), the Board of Directors directed staff to
review the basis for the per- student rates charged to schools and report back to the
Board of Directors prior to January 2016. Based on staff's review of four years of water
consumption data and student counts, a change in the per- student billing rate for high
schools is recommended to more accurately reflect the cost to provide service to those
schools.
If a public hearing is held on December 17, 2015 and the changes are approved, the
amended ordinance will become effective January 1, 2016.
This item addresses the need to maintain responsible rates as stated in the District's
Vision Statement.
ALTERNATIVES /CONSIDERATIONS: The Board of Directors may decline to establish
the recommended public hearing date or may elect to choose a different date; however,
a public hearing must be held if Exhibit A to Ordinance 285 is to be amended.
FINANCIAL IMPACTS: None by setting the public hearing. If the change is adopted
by the Board of Directors following the public hearing, revised sewer bills for
FY 2015 -16 for the affected high schools would result in reductions totaling
approximately $108,460.
COMMUNITY OUTREACH: If approved by the Board of Directors, school districts and
private high schools affected by the change will be contacted by letter to inform them of
the changes to their bill.
Page 1 of 2
POSITION PAPER
Board Meeting Date:
Subject: SET PUBLIC HEARING FOR DECEMBER 17, 2015 TO RECEIVE PUBLIC
COMMENT ON AMENDING EXHIBIT "A" TO ORDINANCE No. 285 TO
REVISE THE SEWER SERVICE CHARGE FOR HIGH SCHOOLS
COMMITTEE RECOMMENDATION: This matter was reviewed by the Finance
Committee on November 10, 2015. They received the presentation and provided input
to staff.
RECOMMENDED BOARD ACTION: Set December 17, 2015 at 2:00 p.m. as the date
and time for a public hearing to consider amending Exhibit A to Ordinance 285 schedule
of Sewer Service Charge Rates (uncodified) to revise the Sewer Service Charge for
high schools.
Attached Supporting Document(s):
1. Proposed Exhibit A
2. Presentation: School Billing Rates and Cost of Service Analysis
Page 2of2
ATTACHMENT 1
ORDINANCE NO. 285
AN UNCODIFIED ORDINANCE OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
ADOPTING A SCHEDULE OF SEWER SERVICE CHARGE RATES
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
WHEREAS, the Central Contra Costa Sanitary District (District) has previously
developed and instituted a Sewer Service Charge Program to finance the services and
facilities furnished by the District, and
WHEREAS, it is reasonable and necessary that all users of the District's wastewater
and household hazardous waste collection, treatment, recycling, reuse and disposal
services and facilities, including those temporary users served under Special Discharge
Permits, contribute their appropriate portion of the funding for such District services and
facilities; and
WHEREAS, the District Board of Directors has reviewed the current Schedule of Sewer
Service Charge Rates and has determined that the annual residential sewer service
charge rate should be increased by $32 per single family living unit to $471, and $24
per multifamily living unit to $463 for Fiscal Year 2015 -2016, and $32 per single family
living unit to $503, and $24 per multifamily living unit to $487 for FY 2016 -17, and that
non - residential sewer service charge rates should be increased as determined by the
Cost -of- Service Study performed by Raftelis Financial Consultants, Inc. and set forth
below in Exhibit A; and
WHEREAS, Chapter 6.24.030 of the District Code provides the enabling authority for
the District to implement the proposed uncodified Schedule of Sewer Service Charge
Rates; and
WHEREAS, a properly noticed public hearing to receive comments and protests and to
consider the proposed uncodified Schedule of Sewer Service Charge Rates was held
on June 4, 2015; and
WHEREAS, in adopting this Ordinance, the Board of Directors finds that:
a. Written notices of the proposed increase in sewer service charge rates were
sent by first class U.S. mail to parcel owners who receive sewer service from
the District, using data provided by Contra Costa County Assessor's Office, at
least 45 days prior to the Public Hearing on the proposed increase conducted
on June 4, 2015.
b. All legally valid protests against the proposed increase in the sewer service
charge rates, including those provided in person, by facsimile, e-mail and
Ordinance No. 285
Page 2 of 6
U.S. mail, were considered and tallied at the Public Hearing conducted on
June 4, 2015, and the District was not presented with protests by a majority of
the owners of the identified parcels affected by this change.
c. The amount of the charge imposed does not exceed the proportional cost of
the service attributable to the properties receiving service and the charge is
only imposed on those properties actually receiving service or for those which
service is immediately available.
d. This action is categorically exempt from the California Environmental
Quality Act (CEQA) pursuant to Section 15273 (a) (1 -4) of the District CEQA
Guidelines.
NOW, THEREFORE, the Board of Directors of the District does ordain as follows:
Section 1 (To be Uncodified)
The "Schedule of Sewer Service Charge Rates" as set forth in full in Exhibit "A" to this
Ordinance, which exhibit is incorporated in full herein by this reference, is hereby
adopted in uncodified form pursuant to the provisions of District Code Section 6.24.030.
As of the effective date of this Ordinance, Sewer Service Charges shall be charged at
such rates and for such categories of users as set forth in said Schedule, and shall
remain in effect until amended or replaced by ordinance.
Section 2
All ordinances, parts of ordinances and any provision of Ordinance No. 278 in conflict
with the provisions of this Ordinance are repealed. The provisions of this Ordinance,
insofar as they are substantially the same as existing provisions relating to the same
subject matter, shall be construed as restatements and continuations thereof and not as
new enactments. To the extent the sewer service charge rates or any portion thereof is
determined invalid or unconstitutional, such portions of Ordinance No. -278 shall remain
in effect and such rates and charges due thereunder for any categories of users shall
remain due and payable as if those portions of Ordinance No. 278 had not been
repealed.
With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken,
prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an
ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain
in full force for the purpose of sustaining any proper suit, action, or other proceedings,
with respect to any such violation, right, liability or appeal.
Ordinance No. 285
Page 3 of 6
Section 3
This Ordinance shall be a general regulation of the District and shall be published once
in the Contra Costa Times and San Ramon Valley Times, newspapers of general
circulation within the District, and shall be effective on July 1, 2015. This Ordinance
shall be kept on file with the Secretary of the District.
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 4th day of June, 2015, by the following vote:
AYES: Members:
NOES: Members:
ABSTAIN: Members:
Michael R. McGill, P.E.
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Elaine R. Boehme, CMC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California.
Approved as to form:
Kenton L. Alm, Esq.
District Counsel
Ordinance No. 285
Page 4 of 6
EXHIBIT "A"
Schedule of Sewer Service Charge Rates (Uncodified)
This schedule of Sewer Service Charges (to be effective July 1, 2015), was established
by Central Contra Costa Sanitary District Ordinance No. 285, adopted June 4, 2015 and
amended December 19, 2015.
User Group
Fiscal Year
2014 -15
Fiscal Year
2015 -16
Fiscal Year
2016 -17
Residential (rate per Residential Unit):
Single Family Dwellings, Mobile Homes
$439.00
$471.00
$503.00
Apartments, Condominiums, Duplexes, Second Living Units,
Mobile Homes
$439.00
$463.00
$487.00
Commercial / Non - Industrial (rates per hundred cubic feet):
Standard Commercial Rate for Users Not Listed Below
$4.07
$4.64
$4.98
Automotive
$4.07
$5.34
$5.73
Bakeries
$11.22
$12.33
$13.22
Hotels /Motels
$4.07
$8.06
$8.64
Supermarkets
$4.07
$8.71
$9.34
Mortuaries
$7.99
$10.70
$11.47
Restaurants
$8.32
$8.71
$9.34
Minimum Annual Charge
$456.00
$480.00
$504.00
Industrial (rates per unit specified):
Wastewater Flow (per hundred cubic feet)
$1.68
$3.42
$3.67
Biochemical Oxygen Demand (per 1,000 pounds)
$934.00
$1,134.00
$1,216.00
Suspended Solids (per 1,000 pounds)
$667.00
$529.00
$567.00
Minimum Annual Charge
$456.00
$480.00
$504.00
Special Discharge Permits &Contractual Agreements:
Determined
Individually
Determined
Individually
Determined
Individuall
Ordinance No. 285
Page 5 of 6
Page 1
Schedule of Sewer Service Charge Rates (continued)
User Group
Fiscal Year
2014 -2015
Fiscal Year
2015 -2016
Fiscal Year
2016 -2017
Mixed Use (for parcels with shared water meter; rates per hundred cubic feet):
Rate Group XA: (90 -99% Standard Commercial; 1 -10% Restaurant)
$4.46
$4.96
$5.32
Rate Group XB: (80 -89% Standard Commercial; 11 -20% Restaurant)
$4.85
$5.38
$5.77
Rate Group XC: (70 -79% Standard Commercial; 21 -30% Restaurant)
$5.25
$5.81
$6.23
Rate Group XD: (60 -69% Standard Commercial; 31 -40% Restaurant)
$5.64
$6.22
$6.67
Rate Group XE: (50 -59% Standard Commercial; 41 -50% Restaurant)
$6.03
$6.64
$7.12
Rate Group XF: (40 -49% Standard Commercial; 51 -60% Restaurant)
$6.42
$7.05
$7.56
Rate Group XG: (30 -39% Standard Commercial; 61 -70% Restaurant)
$6.81
$7.47
$8.01
Rate Group XH: (20 -29% Standard Commercial; 71 -80% Restaurant)
$7.21
$7.88
$8.45
Rate Group XI: (10 -19% Standard Commercial; 81 -90% Restaurant)
$7.60
$8.31
$8.91
Rate Group XJ: (31 -35% Standard Commercial; 65 -69% Bakery)
$8.72
$9.97
$10.69
Rate Group XK: (21 -30% Standard Commercial; 70 -79% Bakery)
$9.08
$9.62
$10.32
Rate Group XL: (16 -20% Standard Commercial; 80 -84% Bakery)
$9.79
$10.18
$10.92
Rate Group XM: (11 -15% Standard Commercial; 85 -89% Bakery)
$10.15
$10.50
$11.26
Rate Group XN: (5 -10% Standard Commercial; 90 -95% Bakery)
$10.51
$10.76
$11.54
Rate Group XO: (10 -15% Restaurant; 85 -90% Bakery)
$10.74
$10.90
$11.69
Minimum Annual Charge
$456.00
$480.00
$504
Ordinance No. 285
Page 6 of 6
Page 2
Schedule of Sewer Service, Charge Rates (continued)
User Group
Fiscal Year
2014 -2015
Fiscal Year
2015 -2016
Fiscal Year
1 2016 -2017
Institutional (rates per hundred cubic feet unless otherwise noted):
Churches
$4.07
$4.64
$4.98
Schools (Daycare, Preschool, University)
$4.07
$4.64
4.98
Schools (Elementary)
$5.62 / per
student
$5.77 / per
student
$6.19 / per
student
Schools (Intermediate)
$5.94 / per
student
$11.34 / per
student
$12.16 / per
student
Schools (High School)
$6.27 / per
student
$11.34
16-.93 / Per
student
$12.16
14-45 / per
student
Fraternal & Service Organizations
$4.07
$4.64
$4.98
Local & State Institutions
$4.07
$4.64
$4.98
Other Tax Exempt (Except Federal)
$4.07
$4.64
$4.98
Federal Institutions
$4.07
$4.64
$4.98
Utilities with Special Tax Status
$4.07
$4.64
$4.98
Independent Living Facilities, Rest Homes, & Convalescent Hospitals
$4.07
$4.64
$4.98
Minimum Annual Charge
$456.00
$480.00
$504.00
Page 3
ATTACHMENT 2
Item No. 7.b.
School Billing Rates
and Cost of Service
Analysis
Danea Gemmell
Planning & Development Services Division Manager
November 19, 2015
Board Meeting
Central Contra Costa Sanitary District
Cost of Service Study Recommended
a Change in School Rates
Elementary Schools
Intermediate Schools
High Schools
5.0 gpd per student
5.3 gpd per student
5.6 gpd per student
5 gpd per student
10 gpd per student
15 gpd per student
Central Contra Costa Sanitary District
Wastewater Cost of Service Study
May 21. 2015
Prepared by Raftelis Financial Consultants. Inc.
11
Billing Methodology
• Most non - residential rates based on water
consumption data
— Separate irrigation meter data, where
available, is removed from calculation
— Winter Quarter Average (December to March)
is used for approximately 10% of customers
Schools are based on Student Count
School Rates
Adopted June 4, 2015
Elementary
$5.77 per
student
Based on 5 gpd per student
Intermediate
$11.34 per
student
Based on 10 gpd per student
High School
$16.93 per
student
Based on 15 gpd per student
2
Board of Directors requested that staff
review water consumption to validate
the basis for the updated school rates
Challenges
• Only 16 of 84 schools have separate
irrigation meters or recycled water
• Large variations in schedule (winter break)
affect Winter Quarter estimates
• Significant site variations between schools
(turf area, swimming pools, etc.)
3
Three -part Analysis
1. Separate irrigation meters (9 month
actual water consumption) compared to
COS basis
2. Winter quarter average estimates
(9 month) for ALL schools compared to
COS basis
3. Actual water consumption (12 month)
compared to total estimated wastewater
21
Water Consumption Compared
�
I
to Billed Wastewater Flow (Test 3)
I
High
I
Intermediate Elemenmry
Schools I
I
Schools I School
I
10,000
I
I
I
I
I
I
I
I
I
15,000
I
I
I
I
I
I
1
1
I
I
I
I
I
I
I
I
to,000
I
1
I
1
I
I
I
I
I
I
I
4 =1
I
(II
I
I
I
1
5,000
r I
I
a
IIIII(�III !I�I��I�
lir�4$� �s.i�rs4 4t�� rlrrr.iTir�4:9
IN CY 1014 Water Consumption (HCF) 1015 -16 Billed Wastewater Flow (HCF) U 201576 Billed Wastewater Flow at lS gal/student /day(Hu)
21
Results
Three -part Analysis supports
• Elementary Schools 5 gallons per
student/day
• Intermediate Schools 10 gallons per
student/day
• High Schools 10 gallons per student/day vs.
15 gallons per student/day
Proposed Revision to
High School Rate
Elementary
$5.77 per
student
Based on 5 gpd per student
Intermediate
$11.34 per
student
Based on 10 gpd per student
High School
$11.34 per
student
Based on 10 gpd per student
5
Impact
• 15 high schools revised to 10 gallons per
student per day basis - $108,460 reduction
Next Steps
• Hearing to amend rate ordinance
• Adjust bills for 15 high schools to new rates
• Recalculate and resend bills (direct bills) or
revise tax bills for April 10 (second installment)
• Send letters to affected school districts
C:
Questions, comments, discussion