Agenda Item 2A - Ordinance 80-14-85CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM# 2A
JULY 28,2014
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.
ACENOA ITEM fi2A
JULY 28,2014
Per di scu ssion during the May 27, 2014 Commiss ion Workshop, the volume rate is pro posed as a
charge of$1.67 p er thousand gall ons. Thi.s is calculated to be 75 percent of the cost o f potable w a ter
for an average 12,000 gall on per month irri gatio n customer. (The 12 ,000 gallon per month fi g ure was
obtained by averaging the consumption of irrigat ion meters in Selva Lakes and Selva Linkside, which
arc most s imilar in s ize and nature to the lots propo sed fo1· th e new development).
The proposed bulk rate of$0.30 per thousand ga ll ons is based on the average ofthc Clay Cou nty
Utility Authority and JEA rates. These two uti li ties wou ld rep resent the market va l ue for bulk
recla imed water in our area.
Statewide Comparison
According the Fl01ida Department of Enviromnenta l Protection's (DEP's) 20 13 Reuse Inventory, a
total of70 utilities in th e state do not charge their reclaimed customers any fee. Of the 133 utilities
that cha rge residential customers, the average charge per thousand gallons is $1.15 , with a range of
$0.12 to $9.36. The 227 uti lities that c harge bulk rate fees average $0.82 per thou sa nd ga ll o ns, with a
range of$0.1 0 to $3.14
BUDGET: A s the 180 homes are constructed, the City will begin receiving water and sewer impact
fees as well as rev enues from th e reclaimed water system. Impact fees will total $934,200. Annual
revenues from the new re c laimed fees are estimated at $63,000 per year.
RECOMMENDATIONS: Place the Ordinance No. 80-14-85 on the June 9, 20 14 meeting for
Introducti o n and First Reading.
ATTACHMENTS: I. Pro pos ed Ordinance 80-14-85
2. Spreadsheet of Proposed Reclaimed Water Rates
3. Spreadsheet of JEA a nd CCUA Reclaimed Water Rates
REVJEWED BY CITY MANAGER: ~t ty"' a.-, e{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# 2A
JULY 28,2014
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
1~ $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 # 2A
JULY 28,2014
a. Residential and Commercial Units. There are hereby-established volume charges
for residential and commercial prope1iies 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 WWA 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-qumier (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 91h day of June 2014.
Passed by the City Commission on second and final reading this _ Day of
____ 2014.
Carolyn Woods
Mayor I Presiding Officer
Approved as to fmm and conectness:
Rich Komando, Esquire
City Attorney
ATTEST:
Donna L. Bmile, 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# 2A
JULY 28,2014
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