1997 AGN JUN 17 I17 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JUNE 17 1997 SUBJECT: APPROVAL OF FIRST READING OF ORDINANCE AMENDING CHAPTER 13.16 OF THE COLTON MUNICIPAL CODE ESTABLISHING SEWER RATES FOR MULTI -FAMILY UNITS AND ESTABLISHING GUIDELINES FOR ESTIMATING WASTEWATER FLOW FROM COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL USERS FOR CAPACITY CHARGES It is the opinion of staff that a two tiered rate is appropriate for these two types of sewer service, but that the charges should again be modified as follows: 1 A charge based upon, the water going into the complex should be maintained. This amount of water sets the maximum limit of the resultant contribution to the sewer system. CONCLUSION: This rate should be set at $0.59/ccf. 2. The utility has made an investment in the sewer system such that it will accommodate the maximum output of each complex unit as though all of the units were occupied. This investment is, and should be, assigned to the multi -family class and needs to be recovered as part of the ongoing revenue requirements. As such, it is reasonable to charge each of the units for their allocated investment. Even though each unit has a responsibility towards the plant need to provide the service, it is not always used because of the existence of vacancies. Staff analyzed vacancy rates with the assistance of other City departments and has determined that City wide, there is an approximate 26% vacancy rate. Applying this rate to the residential sewer charge would produce a unit charge of $12.00/mo. A charge per unit, occupied or not, will be applied each month to bring the complex up to their share of the costs to operate the sewer system. This would provide full cost recovery to the utility for the service. CONCLUSION: The per unit charge should be $12.00/mo. DISCUSSION/ANALYSIS OF GUIDELINES FOR CAPACITY CHARGES: In 1989 Krieger and Stewart prepared a sewer rate study which included Guidelines for Estimating Wastewater Flow from Commercial, Industrial and Institutional Users for Capacity Charges. On April 18, 1989 Council adopted Ordinance No. 0-7-89 establishing sewer servic e charges and wastewater capacity charges. Inadvertently the attachment establishing the guidelines for estimating wastewater flow from commercial, industrial and institutional users for capacity charges was not included in the Ordinance. The guidelines have been in use since April, 1989, without problems, Page 2 of 3 Item No.