Agenda Item 7A - Ordinance 80-14-85 Reclaimed Water RatesCITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM# 7A
JULY 14,2014
AGENDA ITEM: Proposed Ordinance 80-14-85 for Establishing Reclaimed Water Rates
SUBMITTED BY: Nelson VanLiere, City Manager
Donna Kaluzniak, Utility Director
DATE: May 29, 2014 (Revised)
STRATEGIC PLAN LINK: Golf Course
BACKGROUND: The Atlantic Beach Country Club, including the residential development is
currently under construction. The City is also constructing the reclaimed water facilities to serve the
golf course and new development.
The City will be providing reclaimed water to both the golf course and to residences for irrigation.
Attached is a summary and proposed Ordinance No. 80-14-85 for Reclaimed Water Rates, which will
need to be in place soon.
The reuse of reclaimed water has both environmental and regulatory benefits. It offsets the use of
potable water, reducing the amount of groundwater pumped from the Floridian Aquifer.
At the same time, the Water Management Districts are concerned about Minimum Flows and Levels
at area lakes, springs and rivers. Utilities are being encouraged to increase the use of reclaimed water.
In the City's case, our Consumptive Use Permit requires the City to provide reclaimed water to the
new development and golf course. In addition, the St. Johns River Water Management District
provided $442,000 in grant funding towards construction of the Reclaimed Water Facilities project.
Per a study by the American Water Works Association, reclaimed water rates are typically set lower
than the full cost of service. Potable water is less expensive to produce than reclaimed water, though
of higher quality. Charging users the same or more for reclaimed water than for potable water would
discourage its use. Therefore, the majority of utilities base their reclaimed rates on a market value
that is less than the potable rate. This value also takes into consideration the environmental and
regulatory benefits of encouraging the use of reclaimed water.
The proposed rates are similar to the current Atlantic Beach water rates in several ways. They both
have a base charge and a volume charge based on metered consumption. There are also separate rates
for residential and commercial customers. This reclaimed water rate adds a third category; bulk
customers. This is similar to the rate for reuse water established by JEA and Clay County. A
summary of reclaimed water rates from both of these utilities is attached.
For the proposed residential and commercial rates, the base charge per month is based on meter size
and is proposed to be the same that the City currently charges for potable water sales.
AGtNDA ITEM 117A
J ULY 14 .20 111
Pe r d iscuss ion durin g the May 27, 20 14 Co mmi ssio n Workshop, the vo lume rate is proposed as a
charge of $1.67 per thousa nd ga ll ons. Thi s is ca lcul ated to be 75 perce nt of th e cos t of po tabl e w ater
fo r an average 12,000 gallon per month irriga ti on cu sto mer. (T he 12,000 ga ll on per mon th figure was
obtai ned by ave raging the co nsumpt io n of irri ga tio n meters in Selva Lakes and Selva Linksi de, wh ich
are mos t si mil ar in s ize and natu re to the Jots pro posed fo r th e new deve lopme nt).
T he pro posed bulk rate of $0 .30 per th ousa nd gall ons is based on the ave rage of th e C lay Co unt y
Utili ty Aut horit y and JEA rates. T hese two util iti es wo uld represent the market va lue for bu lk
recl aimed wa ter in o ur a rea.
S tatewide C ompari son
Acco rding th e Florid a Depa rtm ent of Environmenta l Protect ion's (DEP's) 20 13 Reuse In ve nt or y, a
to ta l of 70 ut il it ies in th e state do no t c harge their rec la imed cus tome rs any fee. Of the 133 utiliti es
th at charge resid ent ia l custo mers, the average charge per tho usand gall ons is $1.1 5, with a range of
$0.12 to $9.36. Th e 227 utili ties th at charge bul k ra te f ees average $0.82 per tho usa nd ga ll o ns, with a
range of$0.1 0 to $3 .1 4
BUDGET: As th e 180 homes are con structed) th e City will begin receivi ng wate r and sewer impac t
fees as well as reve nu es f rom th e recla im ed water system. fm pact fees wi ll to tal $934 ,200. Annu al
revenu es fro m the ne w reclaimed fees are es tim ated at $63,000 per ye ar.
RE COMM ENDAT ION S: Pl ace th e Ordin ance No . 80-14-85 on th e Jun e 9, 20 14 meeti ng fo r
Jn trodu ct ion and First Rea di ng.
ATTACHMEN TS: l.
2.
3.
Proposed Ordin ance 80-14-85
Sprea dsheet of Proposed Rec laimed Water Ra tes
Sp readsheet of J EA and CC UA Reclaimed Water Rates
REVI EW ED BY CITY MANAGE R: ~ t/" a..,...., d{uy;
2
ORDINANCE NO. 80-14-85
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES,
CREATING ARTICLE V, RECLAIMED WATER SYSTEM,
ADDING SECTION 22-365 CHARGES FOR RECLAIMED
WATER SERVICE, PROVIDING FOR AN EFFECTIVE
DATE.
AGENDA ITEM# 7 A
JULY 14, 2014
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 V, 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
1l!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# 7A
JULY 14, 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% of the "Safe Maximum Operating Capacity" of Class II Turbine Meters as
specified in A WW A Standard C701. 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
AGENDA ITEM# 7A
JULY 14,2014
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