Agenda Item 7B - Ordinance 80-14-85AGENDA ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEAC H
CITY COMMISSION MEETING
STAFF REPORT
AGENDA IT EM# 7B
JUNE 9, 20 14
Proposed Ordinance 80-14-85 for Estab li shing Reclaimed Water Rates
Nel son VanLiere, City Manager .
Donna Kalu zniak, Utility Direct~
May 19,20 14
STRATEGIC PLAN LINK: Go lf Co urse
BACKGROUND: The Atlantic B each C ountry C lub, including the residential d evelopment is
cunentl y und er cons tru cti on . T he C ity is also constructin g the recl aimed water faciliti es to serve the
golf co urse a nd new development.
The City will be providing recla imed water to both the gol f course a nd to res id e nces for irrigati o n.
Attached is a s um mary and proposed Ordinance No. 80-14-85 for R eclaimed Water Rates, w hich will
need to be in place soon.
Th e r eu s e of reclaimed water has both enviromn en ta1 and regulatory benefi ts. It offsets the usc of
potable water, redu c ing th e amou nt of g ro undwater pumped from the Floridian Aquifer.
At the same time, the W ater Management Di s tricts are concerned about M inimum Flows and Levels
al area lakes, spri ngs and rivers. Utilities are bei n g encouraged to i ncrease the u sc of reclaimed water.
In the C ity's case, our Consumptive Usc Pennit r equires the City to prov ide recl aimed water to the
new development and golf co urse. In add ition, the St. John s Rive r Wa ter Manage ment D istrict
provi ded $442,000 in g ra nt funding towa rds construction of the Recl a imed W ater Faci li ties project.
Per a s tudy by the American Water Works Association, reclaimed water rates are typicall y s et lower
than the full cost of ser vice. Potable wa ter is less expensive to produ ce th a n reclaimed water, though
of higher quality. Ch arging users th e same or more for reclaimed water th an for potabl e water would
dis courage its u se. T he refore, the majority ofuti1i ti es base th e ir reclaimed r ates on a m arket value
that is less th an th e potable rate. This valu e a lso takes in to cons ideratio n th e envi ro nm ental a nd
regu latory b e nefits of e ncouraging the u se of reclaimed water.
The proposed rates are s imilar to the c mTc nt Atlanti c Beach wate r ra tes in severa l ways. T hey both
have a b ase ch arge a nd a volume cha rge based on metered con s umption. There are a lso separate ra tes
for residen t ia l and co mmercia l cu stomers. Th is recla imed water rate adds a third category; bulk
c us tomers. Thi s is s imil ar to th e rate fo r r euse water establi shed by J EA and C lay County. A
s wnmary of recl aimed water rates from bo th of th ese uti liti es is a tta ch ed.
Fo r the proposed residentia l and comme rcial rates, th e base charge per m o nth is based o n meter s ize
a nd is proposed to be the same th at th e C ity c urrently charges for potable water sa les. T he vo lu me
rate is proposed as a c h arge of $1.49 per thous and ga ll o ns. This is ca lcul a ted to be t wo-thir d s oft h e
AGEN I)A IT I3M /17 13
JUNE 9, 2014
cost of potab le water for an average 12,000 gall on per month in·igati o n customer. (The 12 ,0 00 ga ll on
per month figure was obtained by averagi ng the co nsumpt ion of irrigation meters in Selva Lakes and
Selva Link side, which are most si mil ar in size and nature to tbe lots proposed for the new
deve lo pm ent).
T he proposed bulk rate of$0.30 per th ousa nd ga ll ons is based on th e average ofthe Clay Co unty
Utility Authority and J EA rates. These two utili ties wo uld represent the market va lu e for bul k
reclaimed water in our area .
Statewide Comparison
Acco rding th e Florida Depattment of Enviro nmental Protection's (DE P's) 2013 Reuse Inventory, a
tota l of70 utilities in the state do no t charge theiJ' reclaimed customers any fee. Of th e 133 utilities
th at ch arge re sid en ti al cus tomers, the average charge per thousand gall ons is $1.15, with a ra nge of
$0 .1 2 to $9 .36. The 227 utilities that charge bul k rate fees average $0.82 per tho usand ga ll ons, wi th a
rangeof$0.1 0 to $3 .1 4
BUDGET: As the 180 homes are constntctcd, th e Ci ty will begin receiving water and sewer imp act
fees as we ll as revenues from th e reclaimed water system . Impact fees will total $934,200. Annu al
revenues from the new rec laimed fees arc est imated at $58,000 per yea r.
REC OMMEND AT IONS : Place the Ordi nance No. 80-14-85 on the June 9, 20 14 meeting for
Intro d ucti on a nd Firs t Rea din g.
ATTACHMENTS: l.
2.
3.
Proposed Ord inan ce 80-14-85
Spreadsheet of Proposed Reclaimed Water Rates
S preads heet of J EA and CCUA Reclaimed Water Rates
R EV I EWE D BY CITY MANAGER: :zt, Y/&..ez .?'t.e-< ,
I
2
ORDINANCE NO. 80-14-85
AGENDA ITEM# 7B
JUNE 9, 2014
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES,
ARTICLE IV, RECLAIMED WATER SYSTEM, ADDING
SECTION 22-365 CHARGES FOR RECLAIMED WATER
SERVICE, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City is constructing a Reclaimed Water Facility and will be
providing reclaimed water service to residential, commercial and bulk customers.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
that;
SECTION I. Chapter 22 Utilities, of the Code of Ordinances of the City of Atlantic
Beach, Florida is hereby amended to read as follows:
Article IV, Reclaimed Water System:
Sec. 22-365. Charges for reclaimed water service.
The reasonable rates, rentals, fees and other charges for the use of the services and
facilities of the city reclaimed water system are hereby found and determined to be and
are hereby fixed and established as follows:
(1) Monthly Reclaimed Water base facility charges for customers inside the
City:
A monthly reclaimed water base facility charge will be levied upon each connection in
accordance with the following:
Residential
All residential customers $8.97
Reclaimed water base facility charges for the commercial classifications are based upon
the meter size and they will become effective as follows:
Meter Size in Inches
5/8 or 3/4 $8.97
1 $11.22
11/z $22.43
2 $35.85
3 $71.73
4 $112.08
6 $224.17
8 $358.67
(2) Schedule of reclaimed water volume charges for customers inside the city:
AGENDA ITEM# 7B
JUNE9, 2014
a. Residential and Commercial Units. There are hereby-established volume charges
for residential and commercial properties as follow:
Residential, Cost per 1,000 gallons Commercial, Cost per 1,000 gallons
$1.49 $1.49
b. Schedule of reclaimed water bulk rate charges for large users with minimum
meter size of 4-inches. Meter size shall be based a Minimum Adjusted Average Daily
Flow of 15% of the "Safe Maximum Operating Capacity" of Class II Turbine Meters as
specified in A WW A Standard C70 1. There is hereby-established a volume charge for all
large users:
Bulk Rate, Cost per 1,000 gallons
$0.30
(3) Customers outside the city. The rates applicable to customers outside of the city
shall be one and one-quarter (1.25) times the rates above.
SECTION 2. Severability
If any section, sentence, clause, or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in
no way affect the validity of the remaining portions of this ordinance.
SECTION 3. Effective Date
This Ordinance shall take effect upon its final passage and adoption.
Passed by the City Commission on first reading this_ Day of ____ 2014.
Passed by the City Commission on second and final reading this _ Day of
____ 2014.
Carolyn Woods
Mayor I Presiding Officer
Approved as to form and correctness:
Rich Komando, Esquire
City Attomey
ATTEST:
Donna L. Bartle, CMC
City Clerk
Proposed Atlantic Beach Reclaimed Water Rates
Residential Commercial
Base Charge
Meter Size, Inches Amount Meter Size, Inches
3/4 $8.97 3/4
1 $8.97 1
1.5 $8.97 1.5
2 $8.97 2
3 $8.97 3
4
6
8
Volume Charges per 1,000 gallons
Volume Cost/1000 gallons Volume
All kgal $1.49 All kgal
Bulk Rate
Volume
All kgal
5/14/2014
Amount
$8.97
$11.22
$22.43
$35.85
$71.73
$112.08
$224.17
$358.67
Cost/1000 gallons
$1.49
Cost/1000 gallons
$0.30
AGENDA ITEM# 7B
JUNE 9, 2014
JEA Reclaimed Water Rates as of 11/22/12
November-12
Residential Commercial
Base Charge:
Meter Size Amount Meter Size
3/4" $18.90 3/4"
1" $31.50 1"
1.5" $63.00 1.5"
2" $100.80 2"
3" $201.60 3"
4"
6"
8"
Volume Charges per 1,000 gallons
Volume Cost/1000 gals. Volume
1-14 kgal $2.60 1-14 kgal
> 14 kgal $5.60 > 14 kgal
Bulk Rate
Volume
All kgal*
All kgal**
Amount
$31.50
$63.00
$100.80
$201.60
$315.00
$630.00
$1,008.00
Cost/1000 gals.
$3.44
$3.96
Cost/1000 gals.
$0.14
$0.28
*Customers who are forgoing groundwater withdrawal from SJRWMD
**All other bulk customers I I
Clay County Utility Authority Reclaimed Water Rates as of
October-12
Residential Commercial
Base Charge:
Meter Size Amount Meter Size Amount
3/4" $14.69 3/4" $14.69
1" $36.72 1" $36.72
1.5" $73.45 1.5" $73.45
2" $117.51 2" $117.51
3" $235.03 3" $235.03
4" $367.23
6" $734.46
8" $1,175.14
Volume Charges per 1,000 gallons
Volume Cost/1000 Volume Cost/1000 gals.
1-15 kgal $0.57 1-15 kgal $0.57
16-20 kgal $1.13 16-20 kgal $1.13
> 20 kgal $1.70 > 20 kgal $1.70
Wholesale Rate:
Volume Cost/1000 gals.
All kgal $0.32
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