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HomeMy WebLinkAbout10. Consider SSC relief program for schools and/or potentially other customer classes Page 1 of 14
Item 10.
k�*k CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT1
May 21, 2020
TO: HONORABLE BOARD OF DIRECTORS
FROM: DANEA GEMME LL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
KENTALM, DISTRICT COUNSEL
ROGER S. BAILEY GENERAL MANAGER
SUBJECT: CONSIDER SEWER SERVICE CHARGE RELIEF PROGRAM FOR
SCHOOLS AND/OR POTENTIALLY OTHER CUSTOMER CLASSES
Staff will review the attached presentation at the Board meeting for a proposed Customer Relief Program
to address continuing impacts of the COVI D-19 pandemic. The two elements of the program include
school rebates for those schools charged a per-student rate for the annual Sewer Service Charge and a
targeted relief whereby commercial/industrial customers who can demonstrate that they were impacted
can apply for relief.
Strategic Plan Tie-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Build external customer relationships and awareness, Strategy 3- Maintain a strong reputation in the
community
ATTACHMENTS:
1. Presentation
2. Customer Outreach Mailer
3. Customer Outreach Mailer including Commercial/I ndustrial Customers
May 21, 2020 Regular Board Meeting Agenda Packet- Page 94 of 505
ATTACHMENT 1
/ FISCAL YEAR 2020-21
I CUSTOMER RELIEF PROGRAM
SEWER SERVICE CHARGE
Danea Gemmell, PE
Planning & Development Services Division Manager
_ . May 21, 2020
Board Meeting
PInTiMuff-M,
FISCAL YEAR (FY) 2019-20 SCHOOL REBATES
= Iz
CENTRAL SAN
z =._
1
K-12 SCHOOLS
-Approximately 130 school sites
• Majority of sites are billed based on student count
■Elementary School rate based on 5 gallons per
student per day
■Intermediate and High School rate based on 10
gallons per student per day
■2015 Cost of Service Study verified actual meter
consumption vs. rate assumptions
• Remaining school sites billed on actual
consumption
•School District offices and other non-school sites
billed based on actual consumption
` 3
CENTRALSAN
FY 2019-20 K-12 SCHOOLS
REVENUE BREAKDOWN
Schools billed by attendance $647,919 90.0%
Schools billed by actual flow 39,455 5.5%
District office, other non-school 32,238 4.5%
Total $719,612 100.0%
CENTRALSANI
2
STUDENT COUNT BASIS OF BILLING
• Per-student rates based on full school year
■ 180 school days
•Assume loss of 50 school days during FY 2019-20
■ 28% reduction
■ COVID-related school closures started on March 16, 2020
•Total rebate would be approximately $180,000
A92IS
CENTRALSAN
RECOMMENDATION
• Direct staff to calculate a 28% rebate for schools billed
on a per-student basis. The rebate is based on the
decreased number of school days in the FY 2019-20
school year due to the Shelter-at-Home order which
began on or around March 16, 2020, and reflects the
decreased benefit the schools received during that
period. The rebate is to be applied to the FY 2020-21
charges.
I)
CENTRALSAN
3
NEXT STEPS
IF BOARD APPROVES SCHOOL REBATES
✓ May 21 , 2020, Board Meeting: Consideration of
School Rebates
❑ Calculate rebate for FY 2019-20 for schools billed on
per capita basis
❑ Send letter to all affected schools eligible for rebate
❑ Include rebate credit on FY 2020-21 bills
1 ,
CENTRALSAN
RECOMMENDED BOARD ACTION
• Direct staff to calculate a rebate for schools billed on a
per-student per-day basis for the FY 2019-20 school
year due to the reduced number of school day
attendance and apply this refund to the FY 2020-21
sewer service charges.
CENTRALSANI
4
FY 2020-21
NON-RESIDENTIAL RELIEF
Alm` 9
CENTRAL SAW-
INTRODUCTION
•Most non-residential customers are billed
based on water consumption and business type
•Time needed to receive water data and
calculate annual bills means that customers
who experience a drop in business in 2020
would not typically see a change in their sewer
bill until Fall 2021 (FY 2021-22)
•As requested by the Board on May 7, 2020,
elements of a draft Customer Relief Program
are outlined for consideration
CENTRALSAN
5
ELEMENTS OF POTENTIAL PROGRAM
• Customers experiencing a drop in water consumption
beginning March 16, 2020:
• Customers submit an application with documentation (2020 water
bills) demonstrating impact
• Application signed by property owner responsible for paying sewer
service charges
• Landlords will need to agree to equitably distribute credit in case of
multiple tenants on a shared water meter
• Amount of relief calculated for the period March—June 2020
• Minimum 20% drop in consumption during Shelter-in-Place period
on a month-to-month comparison to 2019 consumption for the relief
• Maximum relief available is approximately 33% of annual charge
• One-time relief
• FY 2021-22 sewer service charge (SSC) offset by amount
of relief provided to prevent double credits l 11
CENTRALSAN
RELIEF CALCULATIONS
• For an "average" restaurant
• $5,180 annual bill
•Assume 75% reduction in flow for four-month
period for restaurants
•25% adjustment for 12-month period
• $1,295 adjustment
CENTRALSAN
6
CHALLENGE #1 : TIMING OF SEWER
SERVICE CHARGES AND TIMING OF RELIEF
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Sewer Service Charge $17,122 $14,445 $16,046 $8,400* $17,599*
Water Consumption(HCF) 1,626 1,350 1,425 713** 1,425***
CY 2017 CY 2018 CY 2019 CY 2020 CY 2021
consumption consumption consumption1, umption consumption
Typical Data from 4,200 square-foot restaurant
based on estimated consumption and rates approved in 2019
assume CY 2020 annual consumption is 50%of CY 2019
consumption
..* assume CY 2021 annual consumption returns to CY 2019
levels
HCF—hundred cubic feet
FY—fiscal year
CY—calendar year AML,13
CENTRALSAN
CHALLENGE #2: MIXED-USE METERS SHARED BY
DIFFERING BUSINESS TYPES
Medical Offices I -
Entertainment Big 5 `
Restaurants Sporting Goods
M M .,
Barbers, Beauty
Salons,Pet Grooming Armed Forces
Taco Bell Career Center � '-
Fresenius M -
SAFE Credit Pho Lee Hoa
Healing Hands Medical Care
Union Pha'ti Restaurant Spa&Massage
Mi Karaoke
Lenny Craig M
M Cosmo
Prof
M
M O Q-Nails
Domo Sushi
Korean BBQExpress Hair
PDllo Pollo Salon
7
NON-RESIDENTIAL CUSTOMER STATISTICS
-Approximately 2,700 non-residential parcels
billed in FY 2019-20.
•Some parcels have more than one water meter
(charges typically calculated based on water
consumption and business type).
•Approximately 4,400 non-residential water
meters used in FY 2019-20 billing calculations.
• Many water meters serve a mix of businesses.
As an example, for restaurants:
• 326 restaurant-only water meters
• 163 additional meters with mix of restaurant and non-
restaurant
CENTRALSAN
� 1s
65% OF NON-RESIDENTIAL PARCELS
CHARGED $3,000 OR LESS
• Average non-residential sewer bill is$6,897 per parcel
• Median non-residential sewer bill is$1,564 per parcel
• Similar long-tail distribution for most individual business categories
Distribution of Non-Residential Sewer Service Charges
1200
1000
800
`0 600
E
= 400
200
0,,p
11 le
le
l �tl" ,Ytl" ,�tl" ytl" ^tl" ��,Y�,��y�^�9�,Ytl' ,�@' y@' ,\@' 9@' l l O O O y.
1 1 1 1 1 'L 'L 'L 'L 'L ^' ^' ^' ', ', P P Pyr P1� P9�
Annual Charge($)
Source:FY 2019-20 tax roll file494
CENTRAL SAN
8
80% OF RESTAURANT PARCELS CHARGED
LESS THAN $12,000
• 9 sites have bills larger than$30,000
Distribution of Restaurant Sewer Service Charges
80
70
60
50
40
30
z'
20
10
0
ry a & m Is.. 14 4 & .6 ry ry ry ry m v v e v
Annual Bill($) M
Source:FY 2019-20 tax roll file 17
CENTRALSAN
HOTELS AND MOTELS
Top 5 customers: Marriott Walnut Creek, Embassy Suites Walnut Creek, Lafayette
Park Hotel, Extended Stay America(Bishop Ranch),and San Ramon Marriott
Distribution of Hotel and Motel Sewer Service Charges
(annual charge for rate class LH)
14
12
10
A
g
E 6
z'
4
2
L0
til tilC3" Ile ale y,Pte'
, , , ,
Annual Sewer Service Charge($)
_ II
CENTRALSAN
9
FINANCIAL CONSIDERATIONS
•Preliminary data from Contra Costa Water District
suggests a 20% reduction in all commercial
consumption based on April 2019 to April 2020
comparison meter reads
-Analysis of Central San plant flows suggests a
similar 20% reduction
•Staff estimates maximum cost of program would
be $3.6 million based on 20% water reduction
and 100% of eligible parcels applying
•Relief amount given would reset volume by same
amount in the following year (FY 2021-22) to
reflect normal consumption
` 19
CENTRALSAN
CURRENT CENTRAL SAN
SSC BILLING PROCESS
• Central San receives water consumption information from water
purveyors and posts it in SunGard where sewer service bills are
calculated for each parcel
• Bills are prepared/sent to property owner:
• If billed through County, billing information is sent to County for
inclusion on annual property tax bill
• If billed directly, bill is prepared and sent to property owner by Planning
&Development Services
• Property owner receives and pays County/Central San
• Up to the property owner to manage if/how billed amounts and credits
are passed through to tenants and business owners
• Industrial customer bills are calculated manually on a per-
business basis �.
CENTRALSAN
10
NEXT STEPS
IF BOARD APPROVES
TARGETED RELIEF PROGRAM
✓ May 21 , 2020, Board Meeting: Consideration of
Non-Residential Relief Element needed to meet SSC
billing deadlines
❑ Send letter to Tenants and Property Owners
notifying of program with website link to application
❑ Staff determines eligibility from submitted
applications and customer-furnished 2020 water bills
If received:
❑ Prior to July 30, process adjustment to tax roll charges
❑August 1 to November 30, submit Form C to Assessor to adjust
tax bill
❑After December 1, Central San to cut check* `
*Dates are preliminary and subject to change / 21
CENTRAL SAN
BOARD DIRECTION IS NEEDED
ALTERNATIVES FOR COMMERCIAL/INDUSTRIAL RELIEF
1. Stay the Course (Preferred Alternative)
Customer will receive lower SSC in based on actual consumption in FY 2021-22.
2. Across the Board Reduction for all Commercial/Industrial
Customers to reflect lower water consumption during Shelter-
in-Place, which would be adjusted on the account during the
billing process.
3. All Customers who submit an application and demonstrate an
impact to their business, based on lower water consumption,
would be provided relief on their FY 2020-21 SSC bill through
an adjustment or refund.
CENTRALSAN
11
Page 13 of 14
Customer Relief Program
entral San understands that these are tough times for everyone, and we want to do our part
to help alleviate a small bit of the hardships we all are facing. To that end, our Customer Relief
Program provides savings on sewer service charges for some customers. Be assured that we
continue working 24/7 to provide the essential wastewater collection and cleaning services that our
customers rely upon.
h
To assist our residential o
customers, we are waiving the
` _ b scheduled rate increase for
{ _ one year, resulting in about $30
in savings for every household.
During Contra Costa County's Shelter-in-Place Order, most
area construction, including our own critical infrastructure
work and associated planning and operations efforts, was
r slowed or halted for several weeks. Less construction has
meant lower costs for Central San,and we are passing these
R ' \ savings back to you, our customers. While $30 is not a big
1 `?
number, we know every dollar counts right now, and this is
something that we can do for our customers at this time.You
do not need to request the credit;the savings will be applied
automatically on your upcoming 2020-21 property tax bill.
• •
We are refunding sewer service
charges to reflect a drop in
_ water use for the time period
when schools were closed, as
well as waiving the scheduled rate increase
for one year.
In response to COVID-19, most of our local schools were
closed for part of the school year.We are refunding the sewer
_ service charge to schools in our service area for the time they
�✓ f� - were closed and therefore not using our sewer services.
,, Central San will return approximately$180,000 to schools in
our service area. In addition, we are waiving the scheduled
! rate increase, resulting in a savings of approximately 5% on
the remaining charges. Schools do not need to request a
refund or credit; both savings will be applied automatically
to your bill.
To learn more about Central San's modified operations in response to
COVID-19,go to centralsan.org/Covid19
May 21, 2020 Regular Board Meeting Agenda Packet- Page 106 of 505
Page 14 of 14
Customer Relief Program =
entral San understands that these are tough times for everyone,and we want to do our part to help alleviate
a small bit of the hardships we all are facing. To that end, our Customer Relief Program provides savings
on sewer service charges for some customers. Be assured that we continue working 24/7 to provide the
essential wastewater collection and cleaning services that our customers rely upon.
—91-- — 0
RESIDENTIAL SCHOOLS COMMERCIAL
To assist our residential We are refunding sewer We are waiving the
customers,we are waiving service charges to reflect scheduled rate increase
the scheduled rate increase a drop in water use for the for one year for all
for one year, resulting in time period when schools commercial customers, as
about$30 in savings for were closed, as well as well as adjusting sewer
every household. waiving the scheduled service charges to reflect
During Contra Costa County's rate increase for one year. a drop in water use for
Shelter-in-Place Order, most In response to COVID-19, most qualifying customers who
area construction, including our of our local schools were closed experienced a drop in
own critical infrastructure work for part of the school year. We usage due to COVID-19.
and associated planning and are refunding the sewer service
operations efforts, was slowed charge to schools in our service To assist local businesses, we
or halted for several weeks. Less area for the time they were are waiving the scheduled rate
construction has meant lower closed and therefore not using increase for all our commercial
costs for Central San, and we are our sewer services. Central customers this year, resulting in
passing these savings back to San will return approximately a savings of approximately 5%
you, our customers. While $30 $180,000 to schools in our of your regular sewer service
is not a big number, we know service area. In addition, we charges. These savings will be
eve dollar counts right now, applied automatically to your
every g are waiving the scheduled rate
and this is something that we can increase, resulting in a savings bill. In addition, we will furtheradjust the charges for commercial
do for our customers at this time. of approximately 5% on the customers who saw a drop in their
You do not need to request the remaining charges. Schools do
credit; the savings will be applied not need to request a refund water usage and associated sewer
automatically on your upcoming or credit; both savings will be usage from March-May 2020
2020-21 property tax bill. applied automatically to your bill. due to COVID-19 and/or Contra
Costa County's Shelter-in-Place
Order. For example, if a restaurant
was closed and not using water
during this time,their sewer usage
would also be adjusted. If your
S = business saw a significant drop
in water usage due to COVID-19,
you may qualify for this additional
adjustment of up to 25%.
For more information and to
' apply, please visit:
centralsan.org/[link]
To learn more about Central San's
modified operations in response to
=. May 21, 2020 Regular Board Meeting Agenda Packet- Page 107 of 505 CovIo-19,go to centralsan.org/Covid19