Agenda Item 8CAGENDA ITEM:
SUBMITTED BY:
DATE:
STRATEGIC PLAN LINK:
BACKGROUND:
AGENDA ITEM # 8C
OCTOBER 14, 2013
CITY COMMISSION MEETING
STAFF REPORT
Proposed Rates for Sale of Reuse Water to Customers
Jim Hans.•....
September 7, 2013
Strategic Plan Priority Number Two; Golf Course
Attached for your consideration is a proposed set of rates for reuse water.
These should be adopted by the City Commission by ordinance just like other
water and sewer rates. However, it is not necessary to adopt them immediately
due to the schedule for construction of new homes in the golf course
subdivision and the proposed provision in the Master Agreement with the
Country Club whereby there would be no charge for reuse during the first 18
months of grow -in and operation.
These proposed rates are similar to the current Atlantic Beach water rates in
several ways. They have both a base charge and a volume charge based on
metered consumption. There are also separate rates for residential and
commercial customers. This reuse rate adds a third category; bulk customers.
This is similar to the rates for reuse water established by the JEA and Clay
County. A summary of the rates from both of these utilities is attached.
For the proposed reuse rates for residential and commercial customers, the base
charge per month is based on the meter size and is proposed to be the same
amount that the City currently charges for regular water sales. The City's
charges for regular water volume include an increasing block rate whereby the
more a customer uses, the higher amount they pay per thousand gallons. This
rate structure has been required as part of our water consumption permit issued
by the SJRWMD to encourage conservation. While reuse water is also a
valuable resource that should not be wasted, it does not seem necessary to have
as complex a rate structure. Consequently, a single volume charge of $1.49 per
thousand gallons is proposed. This is calculated to be two- thirds of the cost of
regular water for an average 12,000 gallon per month irrigation customer. The
12,000 gallon per month figure was obtained by averaging the consumption of
a number of irrigation meters in the Selva Linkside Subdivision which are most
similar in size and nature to the lots proposed for the new country club
development. Once the 180 homes are built in the new subdivision, and
estimating an average monthly usage of 12,000 gallons, the revenue to the City
per year for residential customers under this rate structure would be $58,000.
The bulk rate is based upon a pro -rated portion of the estimated operating costs
of the reuse facility. These are currently estimated to be $40,800 per year.
Based upon this proposed bulk rate, and the provisions in the master agreement
BUDGET:
ATTACHMENTS:
AGENDA ITEM # 8C
OCTOBER 14, 20I3
for charging the country club for reuse water, the estimate of revenues from the
country club per year will be $16,000.
This brings the estimate of total revenues from the country club golf course and
the new 180 unit subdivision to be $74,000 per year.
The estimated operating costs for the reuse system of $40,800 are already
included in the FY -14 budget. There are no revenues for reuse budgeted in
FY -14 because of the timing of construction and provisions in the proposed
Master Agreement. Total revenues are estimated to equal $74,000 per year
after subdivision construction is complete.
1) Proposed Atlantic Beach Reuse Rates
2) Summary of JEA and Clay County Reclaimed Water Rates as of October
2012
Proposed Atlantic Beach Reuse Rates
9/4/2013
Residential
Commercial
Service Availability Charge:
Meter Size
Amount
Meter Size
Amount
3/4"
$8.97
3/4"
$8.97
1"
$8.97
1"
$11.22
1.5"
$8.97
1.5"
$22.43
2"
$8.97
2"
$35.85
3"
$8.97
3"
$71.73
4"
$112.08
Volume Charges per 1 000 gallons
Volume
Cost /1000 gals.
Volume
Cost /1000 gals.
All kgal
$1.49 kgal
All kgal
$1.49 kgal
Bulk Rate
Volume
Cost /1000 gals.
All kgal
$0.35 kgal
JEA Reclaimed Water Rates as of 11/22/12
Residential
Commercial
Service Availability Charge:
Base Charge:
Meter Size
Amount
Meter Size
Amount
Amount
Meter Size
Amount
3/4"
$18.90
3/4"
3/4"
1"
$31.50
1"
$31.50
1.5"
$63.00
1.5"
$63.00
2"
$100.80
2"
$100.80
3"
$201.60
3"
$201.60
$235.03
3"
4"
$315.00
4"
6"
$630.00
6"
8"
$1,008.00
8"
$1,175.14
Volume Charges per 1,000 gallons
Volume
Cost /1000 gals.
Volume
Cost /1000 gals.
1- 14 kgal
$2.60
1- 14 kgal
$3.44
> 14 kgal
$5.60
> 14 kgal
$3.96
Bulk Rate
Volume
Cost /1000 gals.
All kgal*
$0.14
All kgal **
$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 2012:
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
ICost /1000 gals.
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