Exh 8DAGENDA ITEM #8D
SEPTEMBER 8, 2003
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING•
STAFF REPORT
AGENDA ITEM: Ordinance 80-03-67; Water and Sewer Utility Rate Increase
SUBMITTED BY: Jim Hanson, City Manager
DATE: September 2, 2003
BACKGROUND:
The City has developed ten-year conservative estimates for revenues and expenses
related to the water and sewer utilities as presented during the budget adoption
workshops. The estimated revenues presented included a presumption of a one percent
(1%) growth in sales coupled with a three percent (3%) rate increase for the additional
revenue requirement to fund rising expenditures. The combined growth and additional
revenue equate to a four percent (4%) increase, an amount needed to fully fund the
operations of the utility and provide for the programmed capital outlay as recommended
by the Public Utilities Director. There was no adjustment to the rates in the current year
as was originally planned.
After discussing the rate increase in a budget workshop, the proposed rate increase of
3% was reduced to 1.5% with a corresponding reduction in transfers to the General
Fund. The reduction of the transfers to the General Fund allows the funding of the FY-
2004 Operating Budget to remain otherwise the same.
The City has developed a new rate structure that is currently being reviewed by the St.
Johns Water Management District. The purpose of their review is to ensure that our
proposed restructure is consistent with their conservation objectives. The Water
Management District reviews the water and sewer rates in conjunction with an
evaluation of our utility as part of the process of renewing our consumptive use permit.
The rate restructure, when implemented was proposed to be revenue neutral in total to
the City; however, the new rate is designed to promote conservation by increasing the
rates for discretionary water use.
It was our original intention to restructure the rates first, then apply an across the board
increase of three percent, (3%). The Management District has raised some issues that
will lead to further evaluation, but in the mean time we still need the revenue increase to
fund the proposed operating budget beginning October 1. The proposed rate increase
of 1.5% will add an additional $82,500 in estimated operating revenues.
AGENDA ITEM #SD
SEPTEMBER 8, 2003
Other modifications to the utility code of ordinances include the elimination of conflicting
language by deleting the re-connection fees in sections 22-29 and 22-174 of the code.
The fee already exists in section 22-20 along with other fees for service.
Another change in the code gives the City Manager the discretion to grant cone-time
waiver of late penalties at the customer request under certain circumstances.
The code must also be modified to allow a transfer from the Water and Sewer Utility to
the General Fund of a budgeted amount that may be less than the 25% rate differential
revenue from outside city customers. The existing code requires that the all revenues
generated from the 25% differential be transferred.
The final change is the' correction of language that was deleted in a previous code
change in error. The cap on residential sewer was deleted in error in FY-2000 when the
code was amended to delete language related to quarterly billings. The sewer cap
should have been inserted as a monthly figure at that time and this ordinance inserts
that language. The City continued to give the customers the benefit of the cap during
the time that it was missing from the code.
BUDGET: An additional $82,500 in water and sewer revenues has been programmed into
the Proposed Annual Operating Budget for fiscal year 2004. This additional revenue is
needed to ensure that operating revenues are sufficient to meet rising operating
expenses and to ensure continued compliance with the debt coverage requirements of
the utility revenue bond covenants..
RECOMMENDATION: That the City Commission adopt a 1.5% across the board rate
increase for water base, water volume, sewer base and sewer volume charges. That
the City Commission also approve the administrative code changes eliminating
conflicting language related to the reconnection charge, insert language granting the City
Manager the authority to grant cone-time waiver of delinquent charges, amend the
requirement to transfer the 25% rate differential revenues to the General Fund from the
Water and Sewer Utilities and re-insert the previously deleted language on the sewer
cap as a monthly cap of 13,000 gallons.
ATTACHMENTS:
1) Ordinance 80-03-67.
REVIEWED BY CITY MANAGE
AGENDA ITEM #8ll
SEPTEMBER 8, 2003
ORDINANCE NO. 80-03-67
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA AMENDING
CHAPTER 22 ARTICLE II WATERWORKS SYSTEM SECTION 22-27(1)(a.)
AND SECTION 22-27(1)(b), CHARGES FOR WATER SERVICES TO
INCREASE CHARGES FOR WATER SERVICES; TO AMEND ARTICLE III
WASTEWATER SYSTEM DIVISION SEVEN, SEWER USER RATES AND
CHARGES, SECTION 22-166 ESTABLISHMENT OF A MONTHLY BASE
CHARGE TO INCREASE THE BASE CHARGE FOR SEWER SERVICE,
SECTION 22-167 SCHEDULE OF WASTEWATER VOLUME CHARGES TO
INCREASE THE VOLUME RATE FOR SEWER SERVICES; TO AMEND
SECTION 22-174 DELINQUENT BILLS TO ELIMINATE CONFLICTING
LANGUAGE FOR THE CHARGE FOR RECONNECTION AFTER SERVICE
DISCONTINUATION FOR NON-PAYMENT; TO AMEND ARTICLE II
WATERWORKS SYSTEM SECTION 22-29 TO ELIMINATE CONFLICTING
LANGUAGE FOR THE CHARGE FOR RECONNECTION AFTER SERVICE
DISCONTINUATION FOR NON-PAYMENT; TO AMEND ARTICLE I IN
GENERAL, SECTION 22~d AUTHORITY TO ADJUST OR WAIVE CHARGES
IN APPROPRIATE CASES TO ALLOW GREATER AUTHORITY IN WAIVING
DELINQUENT CHARGES; TO AMEND SECTION 22-2 RETURN INVESTMENT
POLICY FOR BUCCANEER PLANT TO ALLOW FOR A LESSER TRANSFER
TO THE GENERAL FUND; TO PROVIDE FOR SEVERABILITY; TO PROVIDE
FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH,
FLORIDA:
SECTION 1. Article II Waterworks System, Section 22-27 Charges for water service, is
amended as follows: '
Sec. 22-27. Charges for water service
The reasonable rates, rentals, fees and other charges for the use of the services and
facilities of the city waterworks system are hereby found and determined to be and are
hereby fixed and established as follows:
(1) Customers within city:
a. Single units. The minimum bill for a single unit shall be
($5-89j six dollars and thirty-five cents ($6 35) per month for up to three thousand
(3,000) gallons of water.
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AGENDA ITEM #tiD
SEPTEMBER 8, 2003
During each monthly billing period, each monthly bill shall also include an additional
charge of one-dollafs-grid-fi#ty-eight-eeFltsr($~58) one dollar and seventy-four cents
($1.741 per one thousand (1,000) gallons of water used in excess of three thousand
(3,000) gallons during the previous month. Gallons used shall be determined by monthly
meter readings.
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b. Multiple units. For multiple units served through the same meter, the rates and minimum
charges shall be in accordance with the following scale. All multiple units will be billed at
seventy-five (75) percent of the single-unit rate for each unit, regardless of occupancy:
For' each unit there will be a minimum charge of four dollars and tk~ie-Beats-($4-35)
seventy-seven cents 1$4.77) for two thousand two hundred fifty (2,250) gallons per unit.
All excess gallonage shall be charged at the same rate per one thousand (1,000) gallons
as provided for single units above.
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(2) Customers outside the city: The rates applicable to customers outside the city shall be
one and one quarter (1.25) times the above rate applicable to customers inside the city.
SECTION 2. Amend Article III Wastewater System, Division Seven Sewer Rates and
Charges, Section 22-166 Establishment of a monthly base charge, as follows:
Sec. 22-166. EsEatal+shmeat-ofa rnMonthly bBase sCharge.
J:lsef Base charges will be levied monthly as follows:
(a) Monthly base charge. A monthly base charge of
($-1-~-1'~ twelve dollars and twenty-five cents tS12 25) per equivalent residential unit will
be levied upon each connection in accordance with the following:
An equivalent residential unit (ERU) is defined as a wastewater connection that delivers
three hundred (300) gallons per day (gpd) of typically domestic wastewater flow to the
waste stream, or equivalent to a residence serviced by athree-fourths-inch water meter.
The monthly base charge is levied as follows:
Sin le-famil residential and sin le-famil individual-metered mobile homes 51-1,1~ 12.25 er account
Multifamil residential 0.75 x $1~ 12.25 er unit
Master-metered mobile homes 0.75 x $1-1-1$ 12.25 er unit
Travel trailers 0.60 x $1-i-1& 12.25 er site
AGENDA ITEM #8D
SEPTEMBER 8, 2003
Hotellmotel 0.50 x $1-1-1~ 12.25 er unit
With kitchen 0.60 x $~-1:18 12.25 er unit
Master-metered commercial $}-1-18 $12.25 er unit
Restaurants, laundries, and carwash connections $11:18 12.25 x ERU factor
All other commercial customers $~11-18 $12.25 X ERU factor
where the ERU factor for the commercial classification is based upon meter size as follows:
Meter Size in inches ERU Factor
518 x '/. $1.00
1 1.28
1 '/: 2.08
2 2.88
3 5.60
4 10.00
6 20.00
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(b) The rates applicable to customers outside of the city shall be one and one quarter (1.25)
times the rates above.
(c) A monthly base surcharge for revenue generation system as required by the Federal
Environmental Protection Agency and the state department of environmental regulation
is as follows:
A surcharge of one dollar and eighty-four cents ($1.84) per equivalent residential unit
shall be levied upon each connection except in the Buccaneer Water and Sewer District
in accordance with the following:.
Usa a Classification ERU Factor
Sin le-famil residential and sin le-famil individual-metered mobile homes $1.00 er account
Multifamil residential 0.75 er unit
Master-metered mobile homes 0.75 er unit
Travel trailer site 0.60 er site
Hotellmotel 0.50 er unit
AGENDA ITEM #SD
SEPTEMBER 8, 2003
With kitchen 0.60 er unit
Master-metered commercial, more than one unit on one meter 1.00 er unit
Commercial 1.84 x ERU Factor
Restaurants, laundries, and car wash connections 1.84 x ERU Factor as rovided in a above.
SECTION 3. Amend Article. III Division Seven Sewer User Rates and Charges, Section
22-167 Schedule of wastewater volume charges, as follows:
Sec. 22-167. Schedule of wastewater volume charges.
(a) There is hereby established a uniform volume charge per one thousand (1,000) gallons
of water as follows:
(1) Single-family residential and single-family individual-metered mobile homes, three
dollars and t#lrty-sevea~eats-($3-3~) sixty-nine cents ($3.691 per one thousand (1,000)
gallons of actual residential water consumption in excess of three thousand (3,000)
gallons per month up to a maximum of 13.000 gallons oer month
(2) Restaurants, laundries and all other classifications, three dollars and N~irty-seveA-seaFs
($3:3~) sixty-nine cents ($3.691 per one thousand (1,000) gallons of actual water
consumption in excess of three thousand (3,000) gallons per month.
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(b) The rates applicable to customers outside of the city shall be one and one-quarter (1.25)
times the rates above.
SECTION 4 Amend Article III Division Seven Sewer User Rates and Charges, Section
22-174 Delinquent bills, as follows:
Sec. 22-174. Delinquent bills.
If any bill for monthly sewer, water or garbage service shall remain due and unpaid on
and after 5:00 p.m. on the fifteenth day from the billing date, dated on the bill, a penalty
of ten (10) percent of the amount due shall be imposed and added to the bill. If the bill
remains unpaid for a period of fifteen (15) additional days, then all services shall be
discontinued and shall not be reconnected until all past due charges have been fully paid
together with a reconnect charge . If, after discontinuation of
services, the bill remains unpaid, the city may acquire a lien on the property being
serviced which may be foreclosed within thirty (30) days by the city unless the bill and
AGENDr\ ITEM k8D
SEI'TEMI3ER 8, 2003
the penalties thereon are paid and the lien satisfied.
SECTION 5 Article II Waterworks System, Section 22-29 Due Dates and Late Fees, is
amended as follows:
Sec. 22-29. Due dates and late fees.
Bills for minimum and excess water will be rendered at regular intervals, but the
rendering of bills is not an obligation on the part of the city, and failure of the consumer
to receive the bill shall not release or diminish the obligation of the consumer with
respect to payment thereof, or relieve the consumer of any obligation under this chapter.
The bills for service shall be due and payable on the date of billing and shall become
delinquent fifteen (15) days thereafter. If.the bill is not paid within fifteen (15) additional
days (or thirty (30) days from the billing date), service will be discontinued. A #ifteea-
dollaF reconnect fee will be required to be paid, along with the full amount of the bill, prior
to service being restored.
SECTION 6. Amend Article I In General, Section 22-4 Authority to adjust or waive
charges in appropriate cases, as follows:
Sec. 22-4. Authority to adjust or waive charges in appropriate cases.
(a) Right to dispute. Every utility customer shall have the right to have any disputed or
believed erroneous billing reviewed by an employee of the finance department who is
empowered to adjust such billings for overcharging or charging for services not
rendered. The finance director shall designate such employees to hear customer.
disputes and adjust bills to rectify any error and shall make at least one (1) such
employee available to customers during regular office hours and such other times as the
finance director deems necessary and appropriate.
(b) Authority to adjust or waive chan,7es. The adjustment will be made in those cases where
the complaints are well founded and adjustments are appropriate. The city may waive or
assess late fees and service. charges when there is a reasonable basis to believe that
the fees or service charges have been assessed or not assessed in error. The city may
also waive late fees when it appears that the customer has made a reasonable effort to
' deliver payment in a timely manner or when that payment was late due to circumstances
beyond the control of the customer. The city may also nrant a nnp_rt,.,A ,,,,~~„o~ „a rtie
(c) The city may extend the due dates for customers that are on a fixed income for a time
period not to exceed fifteen (15) days past the original due date. The extensions are for
the purpose of helping customers on fixed income pay for services at anytime during the
month without penalty. The extension however does not extend the time period for cut-
. off purposes. Consideration of such an extension will be given to those customers with a
AGENDA ITEM k8D
SEI'TEMIIEI2 8, 2003
good payment history and who are willing to sign a statement regarding the income
limitations of those in the household. The customer must attest that the only household
income received is that of social security or disability income or that the total income of
the household is lower than an amount considered a poverty income level by the
department of health and human services. The city will place the customer's deposit in a
hold status for the duration of the special arrangement.
(d) Terms of adjustment. When a customer is determined by the city to have been
overcharged or undercharged as a result of incorrect meter reading, defective metering,
incorrect application of rate schedule fees and charges, or a mistake in billing or in the
billing and collection process, the amount so determined may be credited or back-billed
to the customer. The adjustment shall be accomplished over a period not to exceed six
(6) months, unless otherwise directed by the finance director or his authorized
representative and so noted on the account. If meter malfunctions are caused by
tampering or customer-inflicted damage, the back-billed period may be extended to the
maximum period allowed by state statute.
SECTION 7
Sec. 22-2. Return investment policy for Buccaneer plant.
The additional rates charged by the Buccaneer systems to customers outside the
city pursuant to section 22-27(2) for water and section 22-167(b) for sewer shall
be considered a return on investment, and such return on investment shall be
contributed to the general fund of the city unless a lesser amount of transfer is
budoeted on an annual basis.
SECTION 8. 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 9. Effective Date
This Ordinance shall take effect October 1, 2003 after its final passage and adoption.
Passed by the City Commission on first reading this Day of September,2003
Passed by the City Commission on first reading this Day of September,2003
AGENDA ITEM l18D
SEI'TEMI3ER 8, 2003
ATTEST:
MAUREEN KING
City Clerk
Approved as to Form and Correctness:
ALAN C. JENSEN, ESQUIRE
City Attorney
JOHN S, MESERVE
Mayor, Presiding Officer