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AGENDA ITEM #7C
SEPTEMBER 25, 2000
CITY OF ATLANTIC BEACH
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CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM:
SUBMITTED BY
DATE:
BACKGROUND:
Water/Sewer Rate Increases
Jim Hanson,
September 6,
During the budget review process, it was recommended that the City Commission adopt
increases to the water and sewer rates that would. produce an additional $630,000 per year so that
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a total of $@,08,889 per year would be available for water and sewer. capital projects. I also
recommended that rates be increased in future years to keep up with inflation. The rate increase
required to produce $631,000 would be approximately 14%. After discussion, the Commission
directed the rate increase. to be spread over a two. year period. The attached ordinance will
accomplish that.
The recommended rate increases will be made on an "across the board" basis by 8% per year
effective October 1, 2000 and October 1, 2001. Two 8% increases versus the original
recommendation of 14% is to account for 2% anticipated inflation over the next two years. The
"across the board" increase is recommended rather than the rate restructuring which was
originally discussed so as to be able to treat. all classes of customers, equally. After running
numerous models of various options to restructure the. rates, staff could not find any that would
have substantially the same percent increase on all groups of customers.
While the rate restructuring is not recommended at this time, it will be recommended after this
present two year rate increase is phrased in. There are five factors about the Atlantic Beach water
and sewer rates that add complication to the rate calculations, make our rates substantially
different from those of other surrounding utilities and raise questions of fairness between
customer classes as follows;
1) The City utilizes a 3,000 gallon minimum for most. residential customers._ Unlike other
cities that charge a base charge and begin volume charges at zero, Atlantic Beach has a
minimum charge that includes the first 3,000 gallons.
AGENDA ITEM #~7C
SEPTEMBER 25, 2000
2) There is a 75% provision for multi family/unit residential customers whereby the
minimum is only charged at 75% of what single family residential customers aze
___ _ _ _ _ chagged, but the base volume .included in that charge is 2,250 gallons instead of the
_ __
..3,000 gallons. Consequently, bills for multi family customers calculate the average
consumption per customer and begin the volume chazges for all usage over a average
of 2,250 gallons per residential unit. The monthly minimums are adjusted differently
for hotels, travel trailers, and commercial customers.
3} There is no sewer service chagged on single family residential customers for volumes in
excess of 13,000 gallons.
4) Inside City sewer customers pay a state revenue generation charge of $1.84 per month
in addition to the minimum.
5} Outside City water customers pay an additional 10% tax upon water sales which is
forwarded to the City of Jacksonville..
For all of these reasons, the Atlantic Beach rates are more complicated than they need to be
which increases administrative costs and raises questions of fairness between customer classes. It
would be better for the City to restructure its rates to bring them more in line with those of other
utilities. However, any restructuring would undoubtedly raise the rates for some groups of
customers while lowering them for others. Consequently, this restructuring is not being
recommended at the same time as the rate increase.
Two other modifications to the utility ordinance are recommended to clarify existing
requirements for a turn. on fee and to simplify deposits. The attached ordinance amending the
City's utility code includes clarifying language on the fee currently charged to all new customers
to have service initiated. This fifteen dollar ($15) fee has been charged for years, however the
language in the code allowing for this charge is not clear and was subject to misinterpretation.
The ordinance amends section 22-20 of the code.
Also addressed in the ordinance is a change in the required deposit for residential customers.
The existing deposit is based on the utility bill at the location for the average of two months. This
meant that every customer could have a different deposit based on a history that may or may not
be representative of their consumption habits. Therefore, far the residential customers a set dollar
amount of $125 would be collected as is the practice of the other utilities in the area. Whether
this is an increase or a decrease depends on the account but with this change the required deposit
will become uniform. It will also be much easier to administer. This will only affect new
customers or customers that had their deposits returned after the two year good history and
subsequently have to redeposit if the account begins to develop a bad payment history. This
amendment changes section 22-27.1.
AGENDA ITEM #7C
SEPTEMBER 25, 2000
BUDGET;
A total of $360,000 is being included for water and sewer rate .increases in the City's proposed
__ _ _ FY 2000-01 budget, _The_second yeaz of the rate increase is to expected to generate an additional
$ 389,000 per year.
RECOMMENDATION;
That the City Commission adopt the two year phased in rate increase for water and sewer rates
and that a rate restructuring be considered in the following year.
ATTACI~VIENTS;
1) Ordinance No. 80-00-62 increasing water and sewer chazges, changing deposit
requirements and clarifying turn on fees.
2) Comparison of present utility rates with 10/1/00 increase.
3) Comparison of 10/1/00 utility rates with 10/1/O1 increase.
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AGENDA ITEM #7C
SEPTEMBER 25, 2000
ORDINANCE NO. 80-00-62
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
.FLORIDA _ AMENDING _ CHAPTER 22 _ ARTICLE _.II -_ ____-__
WATERWORKS SYSTEM SECTION. 22-20. FEE TO RE-
ESTABLISH SERVICE AFTER CUTOFF OR TRANSFER TO
REQUIRE PAYMENT OF A TURN ON FEE FOR.. NEW
SERVICES, SECTION 22-27. CHARGES. FOR WATER
SERVICES TO INCREASE CHARGES .FOR WATER
SERVICE, SECTION 22-27.1. UTILITY DEPOSITS TO SET A
DEFINED DOLLAR AMOUNT FOR RESIDENTIAL
DEPOSIT; TO AMEND ARTICLE III WASTEWATER
SYSTEM DIVISION SEVEN 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 TIDE VOLUME RATE FOR
SEWER SERVICES; PROVIDING FOR SEVERABILITY;
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
ATLANTIC BEACH, FLORIDA:.
SECTION 1. Section 22-20 is amended as follows:
Sec. 22-20. Fee to establish service or re-establish service after cutoff or transfer.
A turn-on-fee of fifteen dollars ($15.00) will_be_char~ed to turn on service for all new
customers. If water service is turned off, either because of delinquency or upon the request of the
customer, acut-on-fee of fifteen dollars ($15.00) shall be charged and paid prior to restoring
water service. If water service is transferred to another residence, afifteen-dollar 15.00
transfer fee shall be charged.
SECTION 2. Amend Section 22-27 charges for water service 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:
AGENDA ITEM #7C
~~ r ~ SEPTEMBER 25, 2000
a. Single units. The ill for a single unit shall be f r~s-arrel
``-~--_~.-r____ --- `- ~~~j~ five dollars and eigh cents $5.80 per month
for up to three thou~rd'(3,000} gallons of water. ,~,~
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The effective rates will be amended for all billings, beginning October 1,
2001 to six dollars and twenty six cents ($6.26 per month. for up to three
thousand 3,OOO~g;allons of water.
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The effective rates will be amended for all billings, be inning October 1,
2001 to one dollar seventy one cents $(1.71) per one thousand allons of
water used in excess of three thousand (3,0001 gallons during the previous
month.
b. Multiple units. For multiple units served through the same meter, the rates
and minimum charges shall be '
nr~~ltiple•-m~its-vvrH~e billed at seventy-five (75) percent of the single-unit
rate for each unit, regardless of occupancy:
1~rrits G-a}lons ~ginirrmrn Bii~
der-~rrth
~ 6~7~@ 9~
~ 9;866 ~~
gallons during the previous `month. Gallons used shall be determined by
monthly meter readings.
AGENDA ITEM #7C
SEPTEMBER 25, 2000
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For each a~iti~l unit mover-7 there will be a minimum charge
(2,250) gallons per unit.
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. 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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The effective rates will be amended for all billings, be inning October 1
2001 to four dollars and seven cents $4.70) per month for up to three
thousand (2.250Zgallons of water.
(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 3. Amend section 22-27.1 (a) Utility deposits as follows:
Sec. 22-27.1. Utility deposits.
(a) A deposit of one hundred twenty five dollars ($125) will be required for all new single
family residential accounts. A deposit representing two (2) months' average charges for utility
services, i.e., water, sewer, storm water and garbage, will be required for all other new utility
accounts. Upon termination of utility services, the customer's deposit will first be applied to any
balances owed on his account. Any balance remaining will be refunded to the customer or
transferred to another account upon request of the customer.
SECTION 4. Amend Article III Division Seven 22-166 Establishment of a monthly
base charge as follows:
AGENDA ITEM #7C
SEPTEMBER 25, 2000
on y ase c arge. mon y ase c arge o -
~;$8~6j eleven dollars and eighteen cents (,$11.18 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:
Sec. 22-166. Establishment of a monthly base charge.
User charges will be levied monthly as follows:
_ __ _ __
(a) M thl b h A thl b h f _.. _ ___ __ _._.__.___
Single-family residential and single-family
individual-metered mobile homes ~f $11.18 per account
Multifamily residential 0.75 x ~$~36 11.18 per unit
Master-metered mobile homes 0.75 x ',$$:~fi 11.18 per unit
Travel trailers 0.60 x ~6 11.18 per site
Hotel/motel 0.50 x X36 11.18 per unit
With kitchen 0.60 x ~8-3fi 11.18 per unit
Master-metered commercial ',$$ S6 11.18 per unit
Restaurants, laundries, and car wash
connections ~~3fi 11.18 x ERU factor
All other commercial customers ~fr 11.18 x ERU factor
where the ERU factor for the commercial classification is based upon meter size
as follows:
Meter Size ERU Factor
(in inches)
AGENDA ITEM #7C
SEPTEMBER 25, 2000
5/8 x 3/4 $1.00
-- _ _ _
___ _-_--
___
2 -
1 1/2 2.08
2 2.88
3 5.60
4 10.00
6 20.00
The monthly base charge effective rates will be amended for all billings,
be ig nning; October 1, 2001 to twelve dollars and seven cents ($12.072per
~uivalent residential unit:
(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:
Usage Classification ERU Factor
Single-family residential and single-family
individual-metered mobile homes $1.00 per account
Multifamily residential 0.75 per unit
Master-metered mobile homes 0.75 per unit
AGENDA ITEM #7C
SEPTEMBER 25, 2000
J
Travel trailer site 0.60 per site
HoteUmotel -_ - - - - - --__ _ _ . _
__-
0.50 er unit .- _ ___
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With kitchen 0.60 per unit
Master-metered commercial, more than one
unit on one meter 1.00 per unit
Commercial 1.84 x ERU Factor
Restaurants, laundries, and car wash
connections - 1.84 x ERU Factor
as provided in (a) above.
SECTION 5. Amend Article III Division Seven 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,
$-2~6 three dollars and thirty seven cents ($3.37~per 1,000 gallons of actual
residential water consumption in excess of ,
.3,000 gallons per month.
(2) Restaurants, laundries and all other classifications, 6 three dollars and thirty
seven cents ($3.37) per one thousand (1,000) gallons of actual water consumption
in excess of .Three thousand (3,0002gallons per month.
(3) The monthly volume charge effective rates will be amended for all billings,
beginning October 1, 2001 to three dollars and sixty four cents ($3.64) per one
thousand (1,000) gallons of actual residential water consumption in excess of
three thousand (3,OOOZ allons per month.
(b} The rates applicable to customers outside of the city shall be one and one-quarter
(1.25) times the rates above. ,
AGENDA ITEM ~7C
SEPTEMBER 25, 2000
-_ _ .
---- -- - -SECTION 6. -Severability If any section; sentence, clause;-or phrase o s or manse is a 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 7. This ordinance shall take effect immediately upon its final passage and adoption.
Passed by the City Commission on first reading this Day of September, 2000.
Passed by the City Commission on second and final reading this Day of September,
2000.
ATTEST:
-__
MAUREEN HING
City Clerk
Approved as to form and correctness:
ALAN C. JENSEN, ESQUIRE
City Attorney
JOHN S. MESERVE
Mayor, Presiding Officer
AGENDA ITEM #7C
SEPTEMBER 25, 2000
City of Atlantic Beach
Comparison of Present Utility Rates to October 1; 2000 Rates
Combined Water and Sewer Existing Rates and Respective Increases
Base 5,000 10 000 15,000 20 000
__ _... ____ __ _ _: Charge _ Gallons_`_ Gallons _Gallons__ Gallons
Inside City
Atlantic Beach Existing Rate
Amount of Increase
Atlantic Beach New Rate
Outside City
Atlantic Beach Existing Rate
Amount of Increase
Atlantic Beach New Rate
Water Rates with 8% Increase
17.56 26.72 49.62 66.28 73.58
1.26 1.99 3.82 5.16 5.74
18.82 28.71 53.44 71.44 79.32
20.32 32.15 61.71 83.48 93.54
1.63 2.56 4.90 6.60 7.38
21.95 34.71 66.61 90.08 100.92
Base
Charge 5,000
Gallons 10,000
Gallons 15,000
Gallons 20,000
Gallons
Neptune Beach 3.72 7.87 14.07 20.27 28.52
Atlantic Beach (Inside) 5.80 8.95 16.84 24.72 32.61
Atlantic Beach (Outside) 7.97 12.31 23.75 33.99 44.83
J.E.A. (Summer 8~ Winter) 9.30 13.76 17.59 22.88 28.50
Jacksonville Beach 6.84 17.09 29.74 42.39 81.14
Waste Water with. 8% Increase
Base 5,000 10,000 15,000 20,000
Charge Gallons Gallons Gallons Gallons
Atlantic Beach (Inside) 13.02 19.76 36.61 46.71 46.71
Atlantic Beach (Outside) 13.97 22.40 43.46 56.09 56.09
J.E.A. (Summer) 3.40 20.80 38.20 55.60 73.00
J.E.A. (Winter) 3.40 23J0 41.10 61.40 81.70
Jacksonville Beach 7.50 .25.46 47.26 69.06 69.06
Neptune Beach 8.80 27.70 50.05 72.40 72.40
Combined Water and Waste Water with 8% Increase
Base 5,000 10,000 15,000 20,000
Charge Gallons Gallons Gallons Gallons
Neptune Beach 12.52 35.57 64.12 92.67 100.92
J.E.A. (Summer) 12.70 34.56 55.79 78.48 101.50
J.E.A. (Winter) 12.70 37.46 58.69 84.28 110.20
Atlantic Beach (Inside) 18.82 28.71 53.44 71.44 79.32
Jacksonville Beach 14.34 42.55 77.00 111.45 150.20
Atlantic Beach (Outside) 21.95 34.71 66.61 90.08 100.92
AGENDA ITEM #~7C
SEPTEMBER 25, 2000
City of Atlantic Beach
Comparison of Proposed October 1, 2000 Rates to October 1, 2001 Rates
Combined Water and Sewer Existing Rates and Respective Increases
Base 5,000 10,000 15,000 20,000
Charge -~ ` ~ Gallons Gallons Gallons - Gallons -- -----
Inside City
Atlantic Beach October 1, 2000 Rate
Amount of Increase
Atlantic Beach October 1, 2001 Rate
Outside City
Atlantic Beach October 1, 2000 Rate
Amount of Increase
Atlantic Beach October 1, 2001 Rate
18.82 28.71 53.44 71.44 79.32
1.36 2.15 4.13 5.56 6.20
20.18 30.86 57.57 77.00 85.52
21.95 34.71 66.61 90.08 .100.92
1.75 2.77 5.33 7.21 8.08
23.70 37.48 71.94 97.29 109.00
Water Rates with two 8% Increases
' Base
Charge 5,000
Gallons 10,000
Gallons 15,000
Gallons 20,000
Gallons
Neptune Beach 3.72 7.87 14.07 20.27 28.52
Atlantic Beach (Inside) 6.26 9.67 18.18 26.70 35.21
Atlantic Beach (Outside) 8.61 13.30 25.00 36.71 48.42
J.E.A. (Summer 8~ Winter) 9.30. 13.76 17.59 22.88. 28.50
Jacksonville Beach 6.84 17.09 29.74 42.39 81.14
Waste Water with two 8% Increases
Base 5,000 10,000 15,000 20,000
Charge Gallons Gallons Gallons. Gallons
Atlantic Beach (Inside) 13.91 21.19 39.39 50.30 50.30
Atlantic Beach (Outside) 15.09 24.19 46.93 60.58 60.58
J.E.A. (Summer) 3.40 20.80 38.20 55.60 73.00
J.E.A. (Winter) 3.40 23.70 41.10 61.40 81.70
Jacksonville Beach 7.50 25.46 47.26 69.06 69.06
Neptune Beach 8.80 27.70 50.05 72.40 72.40
Combined Water and Waste Water with two 8% Increases
Base 5,000 10,000 15,000 20,000
~harge Gallons Gallons Gallons Gallons
Neptune Beach 12.52 35.57 64.12 92.67 100.92
J.E.A. (Summer) 12.70 34.56 55.79 78.48 101.50
J.E.A. (Winter) 12.70 37.46 58.69 84.28 110.20
Atlantic Beach (Inside) 20.18 30.86 57.57 77.00 85.52
Jacksonville Beach 14.34 42.55 77.00 111.45 150.20
Atlantic Beach (Outside) 23.70 37.48 71.94 97.29 109.00