HomeMy WebLinkAbout13. Hold discussion on residential Sewer Service Charge rates for Accessory Dwelling Units as apotential new classification Page 1 of 6
Item 13.
CENTRALSAN
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CENTRAL CONTRA COSTA SANITARY DISTRICT
December 15, 2022
TO: HONORABLE BOARD OF DIRECTORS
FROM: THOMAS BRIGHTBILL, SENIOR ENGINEER-FINANCIAL PLANNING
DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: KENTON L. ALM, DISTRICT COUNSEL
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: HOLD DISCUSSION ON RESIDENTIAL SEWER SERVICE CHARGE
RATES FORACCESSORY DWELLING UNITS (ADU)AS A POTENTIAL
NEW CLASSIFICATION
Central San will be considering proposed new Sewer Service Charge (SSC) rates for Fiscal Year(FY)
2023-24 and FY 2024-25. Staff will present a comprehensive review of the updated cost-of-service
analysis at the Financial Planning Workshop scheduled for January 12, 2023.
I n preparation for that Financial Workshop, staff would like to review the attached presentation to provide
results of a specific analysis on Residential Water Consumption, which was undertaken to determine if
Central San should offer a new rate class forADUs.
Strategic Plan re-In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3- Maintain financial stability
and sustainability
ATTACHMENTS:
1. Presentation
December 15, 2022 Regular Board Meeting Agenda Packet- Page 70 of 145
Page 2 of 6
December 15,2022
Sewer Service
Charge Rates: -
Accessory Dwelling
Unit (New Class)
Board Meeting
Sudhir Pardiwala,P.E.
Raftelis Financial Consultants r
Danea Gemmell,P.E.
Planning and Development Services Division Manager
Thomas Brightbill,P.E.
Senior Engineer-Financial Planning
1
BP 030 Requires Regular Numb-OP030
Cost of Service Review ,gp °m
=W"'M,s
aemF��
BOARO POLICY
COST OF SE-CE ST-EI
A new or updated cost of service study may be appropriate more frequently in
certain circumstances,to be assessed by staff each time rate changes are
proposed.Staff shall report to the Board at the time of the proposed rate
change on whether,in staff's opinion,the Cost of Service study remains a valid
basis for the rates.An administrative procedure addressing this assessment is
maintained by the General Manager.
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December 15, 2022 Regular Board Meeting Agenda Packet- Page 71 of 145
Page 3 of 6
Proposition 218 requires Cost of Service Analysis
to Ensure Cost Proportionality
Determine revenue
needed to meet utility "
Allocate utility costs
costs by function
Project O&M,Capital Design rate structure
and debt expenses Allocate revenue for each customer
required to each class to collect
Review reserve customer class in a appropriate level of
requirements proportionate revenues
7methodology
3
Each User Group is Allocated Costs Proportional
to Treatment Plant Flow and Strength
•
— mr-O
A
Cost
Biochemical oxygen demand(BOD)
4 Total suspended solids(TSS)
4
December 15, 2022 Regular Board Meeting Agenda Packet- Page 72 of 145 2
Page 4 of 6
Residential
Sewer Service Charge (SSC)
Previously,there was only one SSC rate for residential customers
In 2015, Cost of Service Analysis by Raftelis introduced a second
t ,
rate for multi-family residential (MFR)SSC
Current adopted SSC Rate for FY 2022-23:
Single Family $690
Multi-Family* $654
*ADU's are currently charged at the MFR Rate
5
2022 Cost of Service
is analyzing
Accessory Dwe I I i n g
DETACHO AVU ATTACHED AC
Units (ADU)
as a
New Residential
Customer Class
6
December 15, 2022 Regular Board Meeting Agenda Packet- Page 73 of 145 3
Page 5 of 6
District Code 6.12.040
determines an ADU as:
An additional separate living area shall be
defined as an area designed for the purpose of ,rA
separate habitation: _
Physically separated by a wall or door from
other residential units on the parcel,and "
2. Contains a full bathroom consisting of a __
sink,a toilet, and a shower or a tub; F,
An additional sink located outside the L � '_
bathroom area;
4. A multipurpose or bedroom area; and a
5. An exterior entrance.
7
Raftelis analyzed
Residential Water
Consumption Data
A comparison of SFR + ADU's to
SFR alone for Winter Quarter
Months (December to March)
shows that the Water Use of an
ADU is 50% of an SFR }
8
December 15, 2022 Regular Board Meeting Agenda Packet- Page 74 of 145 4
Page 6 of 6
Proposed New Residential
Sewer Service Charge (SSC)
For illustration of SSC Residential ADU Rate would in FY 2022-23:
Single Family $690
Multi-Family $654
i
*Initial estimate. Final ADU rate will come from Cost-of-Service calculations
currently in progress and will include flow,strength,and fixed cost components.
Proposed FY 2023-24 SSC Residential Rates will be presented
at Financial Workshop on January 12, 2023 y,
9
Questions?
w h
10
December 15, 2022 Regular Board Meeting Agenda Packet- Page 75 of 145 5