Amended Agenda #7B - Proposed Ord. 80-14-85CITY OF ATLANTIC BEA CH
CITY COMM JSS ION MEETING
STAFF REPORT
AMI!NDED AGENDA 11 EM H7B
JUNE 9. 2014
AGENDA ITEM: Proposed Ordinance 80-14-85 for Establi shing Reclaimed Water Rate s
SUBM ITTED .BY: Nelson Va n Licre, City Manager
Doru1a Ka lu zni ak, Utility Direct<t!'Q)/
DATE: May 29, 2014 (Revised )
STRATEGJC PLAN LINK: Go lf Course
BACKGROUND: The At lant ic Beach Country Cl ub , in cludi ng the residential development is
c urrent ly under construct ion. The Ci ty is also co nstruc ti ng the reclaimed wate r facilities to serve the
golf course and new deve lopment.
Th e Cit y will be providing recla imed water to both th e golf course and to re s id ences for irri ga ti on.
Attac hed is a summary and proposed Ordinance No . 80-14-85 for Reclaimed Water Rates , whi ch will
need to be in place soo n.
The reuse of reclaimed water ha s both envi ronm en tal and reg ulatory benefits. It offsets th e use of
potab le water, reducing the amou11 t of groundwater pumped from the Floridian Aquifer.
At the same time , the Water Management Distr icts are concerned about Minimum F lows and Levels
at area lakes, springs and river s. Utili ti es are bein g encouraged to increase th e use of reclaimed water.
In th e City's case, our Consumptive Usc Petm it requires the City to prov ide recla imed water to the
new deve lopment and golf co ur se. In addi ti o n, th e St. Johns River Water Management Di strict
provid ed $442,000 in grant funding towar ds constructi on of the Re claimed Water Facil ities project.
Per a study by the Am erican Water Works Asso c iati on, reclaimed wa ter ra tes are typic a ll y se t lower
than the full cost of se rvice. Potab le water is less expensive to prod uce than re c laimed wa ter, thou gh
of hi ghe r quality . Charging use rs the sa me or more for rec laimed water than for po tab le wate r wou ld
discoura ge its usc. Therefore, the majority of ut i I iti es ba se th e ir recl aim ed rates on a marke t va lu e
th at is Jess than the potable .rate. Thi s value also tak es into consideration the environmental and
reg ulatory benefits of encourag in g the use of reclaim ed water .
The proposed rates are s imilar to th e current Atl antic Beac h wate r rates in several ways. They bo th
have a ba se charge and a vo lume char ge based on metered consumpti o n. There are also se parate rates
for residential and commercia l cus tomers . This reclaimed water rate adds a third catego ry; bulk
customers. Thi s is s im ilar to the rate for re use wa ter establ ished by JEA and Clay Co unt y. A
summ ary of re c laim ed water ra tes fro m both of th ese uti lities is attached.
For the propo sed res id ential and commercia l rates, the base c harge per month is based on meter s ize
and is propo se d to be th e same th at the City currentl y charges for potable wate r sales.
1\MI:NDt:D 1\GEND/\ I'I'HM /1713
JUNE9,2014
Per discussion during the May 27, 20 14 Commission Workshop , the volume rate is proposed as a
char ge of $1.67 per th ousand gallo ns. This is calculated to be 75 percent of th e cost of pot able water
for an average 12 ,000 ga ll on per month irrigation customer. (The 12,000 gallon per month figure was
obtained by averag in g the consumption of irri gation meters in Selva Lakes and Selva Linkside, whi ch
arc most similar in size and nature to the lots proposed for the new development).
The proposed bulk rate of$0.30 per thousand ga ll ons is based on the average of the Clay Coun ty
Ut ilit y Authority and .l EA rate s. These two utilities would represent the market va lu e lo r bulk
reclaimed water in our area .
Statewide Comparison
Accord in g the Florida Depattment of Environmental Protection 's (DEP 's) 2013 Reuse In ventory , a
total of70 utiliti es in the state do not charge th eir reclaimed customers any fee. Of th e 13 3 uti li ties
that charge residential customers, the average charge per thousand ga ll ons is $1.15, with a range of
$0.12 to $9.36. The 227 util ities th at charge bulk ra te fees average $0.82 per thousand ga llon s, with a
range of $0.10 to $3 .14
BUDGET: As the 180 homes are constructed, the City wi ll begin rece ivi ng wa ter and sewer impact
rees as well as reve nu es from th e rec laimed water system. Imp ac t fees wi ll to ta l $934 ,200. Annual
revenues from the new reclaimed fees are es tim ated at $63,000 per year.
RECOMMENDATIONS: Pl ace the Ordinance No. 80-14-85 on the June 9, 20 14 meeting for
Introducti on and Firs t Reading.
ATTACHMENTS: 1.
2.
3.
Proposed Ordinance 80-14-85
Sp read shee t of Proposed Reclaimed Water Rate s
Spreadsheet of J EA and CCUA Rec laimed Water Rates
REVIEWED BY CITY MANAGER: :=?% ~ ;:?~
2
ORDINANCE NO. 80-14-85
AMENDED AGENDA ITEM #7B
JUNE9,2014
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
1'li $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:
AMENDED AGENDA ITEM# 7B
JUNE 9, 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
$1.67 $1.67
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% ofthe "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 Attorney
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 $1.67 All kgal
Bulk Rate
Volume
All kgal
5/29/2014
Amount
$8.97
$11.22
$22.43
$35.85
$71.73
$112.08
$224.17
$358.67
Cost/1000 gallons
$1.67
Cost/1000 gallons
$0.30
AMENDED AGENDA ITEM #78
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
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