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HomeMy WebLinkAboutAgenda Report - November 15, 1989 (61)CO +CIL C0MMUNICAT ON TO: THE CITY COUNCIL FROM: THE CITY' MANAGER'S OFFICE CDUNC]L MEETING DATE NOVEMBER 15, 1989 SUBJECT: TO RECEIVE PUBLIC INPUT REGARDING CCNSUERATION OF THE INTRODUCTION OF AN ORDNANCE SEFrING AND ESTABLISHING IMP ASS D RATES FOR g3NM SERVICE AND CIJN M3CM'4 FEES PREPARED BY: City Manager RECOMMENDED ACTION: That the City Council introduce Ordinance No. 1463, "An Ordinance of the Lodi City Council Adopting a Nov Fee Schedule for Sewer 'Service and Connection Fees," said adjustments to be effective with sewer service bills prepared on and after January 1, 1990. BACKGROUND P4(FA ATION : The City Council adopted Resolution 86-152 at its regular meeting of October 1, 1986 setting in place a schedule of annual sewer service charges and connection fees adjustments until such time as the White Slough Water Pollut on Control Facility expansion project is completed or until that resolutior! is superseded. The adjustments are 15%effective each year on or as close to Oct)ber 1 as feasible. The proposed fee and related ordinance changes are outlined in the attached mum (Exhibit 1) prepared by the Public Works Director dated November 3, 1989. The proposed Ordinance Na 1463 is attached as Exhibit A to this Menlo. This data was reviewed with the City Council at its "Shirtsleeve" session of November 7, 1989. The proposed adjustments will increase the monthly sewer service charge for a two-bedroom house from $5.38 to $6.19, and the connection fee from $1587 to $1825. The mum provides the City Council with the information it requested on setting a flat rate connection fee on all residential units. Staff still feels that the fairest way to apply connection fees to residential units is by number of bedrooms. If the Council wishes to change the concept to a flat rate connection charge, this approach can be incorporated at the time the ordinance is introduced. Since these increases will help to fund theroposed expansion of the White Slough Treatment Plant it is critical that Ordinance No. 1463 be introduced at this meeting. The introduct on of this ordinance requires a 4/5 vote of the Counci 1. Z_ Rates for Sewer Service at.. Connection Fees November 15, 1989 Page - 2 - At the last "Shirtsleeve" session, Councilmember Pinkerton requested to be informed of the City fees for a standard single-family home. For an average 1800/s,f, three-bedroom home the City fees collected are as follows: Building Permit Charge $1300.00 (includes building permit, plan check, Strong Motion Instrumentation Program (seismic safety) , plumbing, electrical and mechanical/air conditioning) Sewer Connection (using proposed increase) The school impact fee ($1.56/s.f.) TAP: br Attachments CFUNC-690 EXHIBIT 1 MEMORANDUM, City of Lodi, Public Wogs Department E T0: City Manager City Council FROM: Public Works Director DATE : November 3, 1989 SUBJECT: Nw Fee Schedule for Sewage Service Charges and Connection Fees and Related Changes i n the Existing Sewer Ordinance The attached Exhibit A i s the proposed Ordinance which modifies the sewage service charges and sewer connection fees. i. A t the October 4, 1989 Council meeting, under the discussion of increasing sewer fees, two questions were raised that continued the action on the proposed fee increase. These questions were: _ 1. Should me have a flat connection fee for all sizes of residential ! \ units rather than the present variable connection fee which is tied to the number of bedrooms? 2. Fbw is the connection fee and sewage service charge determined for commercial and industrial uses? The chart showing the allocation of these fees war, not provided to the City Council. Residential Connection Fee Section 1 of the proposed Ordinance (Exhibit A) shows the residential connection fee as 51,825.00 per Sewage Service Unit. Section 13.12.130 of the overall sewer ordinance shows the following relationship between the number of bedrooms and sewage service unit:: Number o f Sewage Service Bedrooms U r i t s F ... 1 0.75 2 1.00';:_ 3 1.25 1 4 1.50` 5 1.75 6 2.00 7 2.25 Therefore, the ccnnection fees for residential would be as follows: Number of Bed,-ooms Connection Fee l 1 $1,368.75 2 $1,825.00 3 $2,281.25 4 $29-737.50 5 $3,193.75 6 $3,650.00 a 7 $4,106.25 fw The Council requested that me calculate a flat rate connection fee for all sizes of residential units that would provide the same revenue as the proposed connection fee tied to bedrooms. In order to make this i calculation, an assumption has to be made on what ratio of bedrooms per residential unit will be constructed in the future. The attached Exhibit B evaluates four different development alternatives. Listed below are the alternates and what the flat rate connection fee would be for each. F1at.Rat Alternate Description Connection ree 1 The future ratio will equal the ratio of 51,8b0 existing units presently constructed The future ratio will equal that ratio based S2,245 on 1988 building permits 3 The future ratio will equal that ratio based $1,990 on 1989 building pewits MCM8949 j TX i W . 02M 4 The future ratio will equal the average of -oe $2,160 1988/89 building permits Under these four alternatives, the flat rate connection fee varies from $1,860 to 52,245 per residential unit. If the Council desires a flat rate residential connection fee, staff would recommend using Alternate 4 which is based on the average of the 1988/89 building permits and provides a flat rate fee of 52,160 per residential unit. Commercial and Industrial Fees In Section 1 of the proposed Ordinance (Exhibit A), the cost per sewage service unit for moderate strength commercial and industrial users on the domestic system is as follows: Annual Sewage Service $74.28 per sewage service unit (56.19 monthly) Connection Fee $1,825.00 per sewage service unit High strength user fees are calculated individually using flow, BOD, and SS . The chart shown in Section 2 of the proposed Ordinance shows how the sewage service unit charge for both the connection fee and sewage service is applied. Example A Church (Meeting Place, Re l i q i ou s) with 300 seats would be charged for 1.5 Sewage Service Units (300 . 200 = 1.5) Connection F e e 1.5 X S? ,825 = S2,737.50 MCMB949/TXTW.02M Sewaqe Service Charge 1.5 X $74.28 + 12 months = $9.28/month The proposed Ordinance recommends a change in the ellocation of sewage service units to some commercial and industrial uses. The attached Exhibit C shows the changes that are being recommended. The recommended changes are based on calculated sewer flows determined from actual water metered usage. Under Section 1, the unit charges for flow, SOD, and SS for a high strength industrial user on the domestic'system were increased more than the standard 15%. Three years ago, when the connection fees were increased from $290 to $1,200, these unit charges for connection fees were not proportionately increased. This oversight was not caught until now. 11Rhis had not been caught, a two-bedroom residence using these unit charges would be charged a connection fee of only $110 versus the $1,825 that should be charged. Fortunately, no high strength industrial users have connected in the last three years, so the City has not lost any revenue. Section 4 of the proposed Ordinance revises the appeal section of the overall sewer ordinance. The revision will allow the Public Woks Director to make adjustments in the monthly sewage service charge. The existing ordinance only allows an adjustment in the connection fee. Section 4 also provides for determining and adjusting connection fees and sewage service charges based on calculated sewer flows where water meters are installed. M;M894:/TXTW.02M Jack 1. Ronsko Public Works Director JLR/mt Attachments cc: Water/Wastewater Superintendent "8949i7,XTW.02N ORDINANCE NO. 1463 Eahi bi t A AN ORDPW�CE OF THE LODI CITY COUi�,,IL ADOPTING A NEW FEE SCHEDULE FOR SEWA 1 SERVICE AND 00NgBC.H0N FEES BE IT ORDAINED BY THE LODI CITY COUIVC7L: SECIION 1. Lodi Municipal Code Chapter 13.12 "Sewer Service", §13.12.2 i "Sewer Service Connection Fee Schedule" is hereby amended to read as { follows: 13.12.245 Sewage Service and Connection Fee Schedule DOMESIIC SYSIE\4 A. Residential IM 1. Sewage Service Charge Number of Bedrooms Monthly Rate 5 4.65 S 6.19 1, S 7.74 S 9.28 { 510.83 $12.37 $13.90 `F 2. Connection Fee $1,825.00 per unit* , *"Unit": Sewage Service Unit, defined as each increment of flow of a typical two-bedroom residence (206 gallons per day f and having BOD and SS strengths of less than 300 milligrams per liter). Units for residential, commercial, and industrial users are shown in Section 13.12.180. B. Commercial 1. Annual Sewage Service $74.28 per unit per year 2. Connection Fee $1,825.00 per unit C. Industrial 1. Annual Sewage Service Moderate Strength User S74.28 per unit per year High Strength User Unit Item Unit Charae Flow - MG BOD - 1,000 lbs. SS - 1,000 lbs. SEWcR0RD/TXTW.02V. 5357.41 per MG 5174.90 per 1,000 lbs. 5142.97 per 1,000 lbs. "2. Commercial and industrial user sewage service charges shall be based on the number of sewage service units assigned to each user. The units of measure or determining the number of sewage service units assigned to each user are as follows: 5E W E R 0 R D 17 " T W . 0 2 2 - 2. Connection Fee Moderate Strength User $1,825.00 per unit =; High Strength User Unit Item (per year) Unit Charae Flow - MG 59,733.01 per MG BOD - 1,000 lbs. $4,009.18 per 1,000 lbs. SS 1,000 lbs. $1,805.59 per 1,000 lbs. j INDUSTRIAL SYSTEM A. Annual Sewage Service i Unit I tem U n i t Charoe Flow - MG To be determined annually by BOD - 1,000 lbs. the Public Wojks Director as outlined in §13.12.200 of the> Lodi Municipal Code B. Connection Fee To be determined annually by the Public Wo�s Director as outlined in §13.12.210 of the Lodi Municipal Code HOLDING TANK WASTES A. Dumping Charge $54.75 p 2 r 1.000 gal. STORM ERAN SYSTEM A. Storm Drain Disposal Charge $66.13 per MG" j ; SBCHON 2. Lodi Municipal Code Chapter 13.12 "Sewer Service", ; i §13.12.180 "Domestic System Service Charges", Section C-2, is hereby i amended to read as follows: "2. Commercial and industrial user sewage service charges shall be based on the number of sewage service units assigned to each user. The units of measure or determining the number of sewage service units assigned to each user are as follows: 5E W E R 0 R D 17 " T W . 0 2 2 - User Description 1. Meeting place, religious 2. Meeting place, Public 3. Hotel, motel without kitchenettes 4. Hotel, motel with kitchenettes 5. Veterinary clinic 6. Post office 7. Funeral parlor 8. Service station with service garages 9. Service station without service garages 10. Car wash, autcmatic bays 11. Car wash, self -serve bays 12. School, 8th grade and below 13. High school 14. Eating place, seating only 15. Eating place, seating and take-out 16. Eating place, "pizza parlor" 17. Eating place, take-out only 18. Lunch truck business 19. Laundry, coin -op. , reg. mach. 20. Laundry, coin -op., big mach. 21. Comm. laundry and dry cleaning 22. Dentist's office 23. Office, store, warehouse, manufacturer, Doctor's, Chiropractor's, and X-ray offices 24. Grocery store, supermarket (having vegetable/fruit or butcher/meat sections) 25. B? r 26. Barber, beauty shop SNERORD; TX71W.00" Unit of Mersure Each 200 seats Each 100 seats Each 3 beds , Each unit Each 4 employees Each 15 employees Each 3 employees Each 2.5 pumps Each 7 pumps 20 SSUs per bay 2 SSUs per bay Each 20 students Each 15 students Each 10 seats Each 7 seats Each 35 seats Each 5 employees Each 5 employees Each 1.5 machines Each machine Each 3 employees Each employee Each 6 employees Each 3 employees Each 20 seats Each 3 workstations 27. Hospital , convalescent bcme 28. Rest and retirement home 29. Mobile bcme park 30. RV dump station Each 3 beds Each 3 beds Each 1.33 pads Each station One sewage service unit shall be assigned to each unit of measure. Fees shall be based on nearest one-tenth sewage service unit except minimum number of sewage service units shall be 1.0." SECTION 3. Lodi Municipal Code Chapter 13.12 "Sewer Service", §13.12.190 "Domestic System Connection Fees", Section C, which reads as follows, is hereby deleted: C. Any discharger, after one full year of operating data is available, may request the public works director to make an adjustment, or the public works director may institute an adjustment, if a significant variation exists between the estimated end actual quantities for each characteristic. Increases in connection fees shall be due and payabie on demand a t tf,e time the public works director makes the fee adjustment and decreases will be credited." SECI)ON 4. Lodi Municipal Code Chapter 13.12 "Sewer Service", §13.12.260 "Appeals" is hereby amended to read as follows: "The owner or occupants of any premises who find that the charges and/or fees provided for in this article are unjust or inequitable may make application to the public works director to have the fees modified, in accordance to Section i3.12.590. SE-k'-EPORD/TXT', . 02M Commercial or industrial discharger, after one full year of operating data is available, may request the public works director to make an adjustment, or the public works director may institute an adjustment, if a significant variation exists between the estimated and actual quantities for each characteristic. Increases in connection fees shall be due and payable on demand a t the time the public works director makes the fee adjustment and decreases will be credited. Increases or decreases i n sewage service charges shall be implemented in the next billing following the determination by the public works director that adjustment is appropriate. Where water usage is metered, the estimated sewer flows may be . compared to the flows of a two-bedroom residence (one SSU) to determine or adjust the connection fee or sewage service charge." SECTION 5. The above fees for the Domestic System and Holding Tank Wastes shall be increased 15p annually on October 1 of each year until the White Slough Weter Pollution Control Facility expansion is completed or this ordinance is superseded. SECTION 6. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist, SECTION 7. This ordinance is for the usual and current expenses of the City and is adopted pursuant to Governm-int Code §36937(d). I t shall be pub! ished one time in the Lodi News Sentinel, a daily newspaper of general circulation printed and published in the City of Lod'a, and shall be in force and take effect immediately upon its passage and approval. The S-W-RORD/ T ); W.02N - 5 - Approved this day of o 1989 JOHN R. SNIDER T. Attest : ALICE N. REIMCHE City Clerk $z.wGR0RD/i G.r2M - 6 - State of California County of San Joaquin, ss. I, Alice M. Rc-mche, City Clerk of the City of Lodi, do hereby certify that Ordinance ;1u, was introduced as a regular meeting of the City Council of the City of Lodi held 1989 and was thereafter passed, adopted an ordered to print at an adjourned regular meeting of said Council t hel d 1989 by the following vote: Ayes : Counci lmembers .1 Noes: Counci lmembers 4 Absent Counci lmembers Abstain: Counci lmembers I further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant t o law.` f s: ALICE M. REXMCHE'' City Clerk Approved Pas t o Form: BOBBY W. MGNA7 City Attorney SEWERORD /T nTW.02V. w Alternate 4 Average of 1988 & 1989 Total Units % of Total 33 7.76 131 30.79 200 47.00 57.5 13.51 3.5 0.89. .5 0.12 425.5 $2,160 t tp Seder Conrktion Fee Pee:ttesidentla" th'it Alternate 1 Altemate 2 Almrate 3 1988 989 Overall Units Building Permits Building Permits FYicti�x as Of 11/80 of 10/87 - 9/88 of 10/83 - 9/W # of flediTnis Proposed Connection Fee Total Units % of Total Total Units % of Total Total Units % of Total 1 $1,368.75 2,876 16.39 12 2.1 54 15.98 2 $1,825.00 6,740 38.42 113 22.03 149 44.W 3 $2,281.25 7,056 40.22 300 58.48 100 29.59 4 $2,737.50 795 4.53 83 16.18 32 9.47 5 $3,193.75 72 .41 5 .97 2 0.59 6 $3,650.00 4 .02 0 -- 0 0 7 $4,106.25 1 .01 0 1 129 notal 17,544 513 338 [(-- Per Residential thit* $1,1360 $2,245 $1,990 Alternate 4 Average of 1988 & 1989 Total Units % of Total 33 7.76 131 30.79 200 47.00 57.5 13.51 3.5 0.89. .5 0.12 425.5 $2,160 t tp Chanoes i n Units .z.P,easuref Legend: ---- deletion new wording 11, Car wagh . self serve bays 2 GSU's per bev 9- School, 8th grade and below Each 20 Stugents high school Lacb 15 s`udent=_ ��• Each: '_0 sea --S _-c Eating place, seating onl% ` User Description Unit of Measure 1. Meeting place, religious Each 200 seats 2. Meeting place, public Each 100 seats 3-----Hete-? , -saote--------------------------------£ftt'h•-�--be . i3. Hotel motel witr:et, es Eich 3 beds 4 Hotel motel with kitchengzttes Lach unit i- veterinary clinic £ach-�8-3terrsei� Each 4 employees !- post office Meeh-E6-engsecea -6-7_. Funeral parlor Eaeh-?-emp� e�rees $ach 3 enRlgvees. r-, Service Gcation prmps wit r sg-Tvice aara.a„�Eeeh-=-ptmea . Each 2.5,pumAs . s2ryice station without sq ice as -acres Each 7 pumps Car wash begs automatic_ bays Each -hey 20 SSU's per bay 11, Car wagh . self serve bays 2 GSU's per bev 9- School, 8th grade and below Each 20 Stugents high school Lacb 15 s`udent=_ ��• Each: '_0 sea --S _-c Eating place, seating onl% ` Eating place, seating and take-out. Each 7 sees _ t i6, Latina D ace "Ai zza uaZior" Each-:�5__seats i3-17 s Eating place, take-out only Each 5 employees i4- Lunch truck business Each 5 employees Laundry, coin -op., reg. mach. =act-- meehi:�ca Each 1.5 machines i .b-ZQs Laundry, coin op., big mach. Each machine _T iT-21• Comm. laundry and dry cleaning Eaei:-?-cry oyeee Each 3 gnnIDvees x$ ; Hoctet-le-aft --------------------------- 1 Dentist's office Haeh-S-eap�e�►ees R Each emlovee ?$-----eh.,_i 'QCt ce--------------------�Qch-=9-eap?e�+ees -t .. -. >s, e-2 office, store, waxrehouse, manufacturer Each.-----ehp_eyees o�t�r's. Chiropractor's and X-ray C -o offices Each 6_ dnplovegs 24, Grocery Store. Supermarket (Having Each 3 emi l ovees , y vea/fruit or butcrpr/neat sects ons) ..-=-r25. Bar =-*-fit, Barber, beauty shop ..Z-27. Hospital, convalescent home = r_-. Rest and retirement home c--29. Mobile home park zz- .-.30• RV dump station ae�•?S-9ceta Each 20 seats Eaeh-4-e?�c_-a F.aCh 3 Wb?'k5}2 �'1072S Each -e -beds E c 3 beds Each 3 beds Each 1.33 pads Each station one sewage service unit shall be assigned to each unit of measure. Fees s. -Lail be based on nearest one-tenth sewaae service unit: except minimum n::rnber of sec:aae serv.iee , , its- - E beL1.0- 'OTICF OF PURLIC HFARING ` CIT" Or LODI% Date: November 15, 1989 P CARKEGIE FORUM 305 NVest Pine Street. Lodi Time: 7:30 For information regarding this Public Hearing Please Contact: Alice M. Reimche City Clerk Telephone: 333.6702 NOTICE OF PUBLIC HEARING November 15, 1989 NOTICE IS HEREBY GIVEN that on Wednesday, at the hour of 7:30 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing to consider the following matter: 1. to receive public input regarding consideration of the introduction of an ordinance setting and establishing increased rates for sewer service and connection fees. Note: This public hearing was continued from the regular City Council Meeting of October 4, 1989 to November 15, 1989 at 7:30 p.m. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the Public Hearing. By Order Of the Lodi City Council: Alice M. Reimche City Clerk Dated: November 1, 1989 Approved as to form: o�W. McNatt City Attorney, November 15, 1989 City Council City of Lodi, California Tonight you face a vote on yet another utility raise, one that like our water raise of recent could be very disciminitory to a large segment of our population. I write of that group who are home Owners, regular voters, on fixed incomes who are now approaching their "Golden Years". Please consider the fact that your vote, wit.')ut modification, can make these years "leaden" rather than "Golden". This group of solid citizens, earning less than $30,000 a year household income are LOCKED INTO 25 to 35 year old (or older) homes that require constant maintenance and are unable to afford a home with less bedrooms (the criterion for utility raises) . These same people are unable to enjoy the creature comforts of full time heating or air conditioning due to the rates, unable to afford new cars, unable to stretch that limited income for whim or fancy. Unwilling to plunge into debt for different housing as they are the sons and daughter of the great depression and three wars. These are the people who have helped pay the tariff that has built Lodi from a village to a city. Those who have volunteered in community activity and affairs, those who have paid and paid. These are the people living 2 to a 3 -bedroom homg• unlike of Lodi's 1 and 2 -bedroom homes and apartments housing 8 or 12 people. An exemption should PEOPLE. , � L ./,--on D. 1'J - i ay !': e r s 2448 Corbd.n Lane be written into the ordinance. FOR THE