1998 AGN APR 21 I22 - Laserfiche WebLink

Browse Search

CITY OF COLTON CITY COUNCIL AGENDA REPORT For Council Meeting of April 21, 1998 TO: Honorable Mayor and City C6tu ncil Members APPROVAL: Henry T. Garcia, City Count FROM: Thomas K. Clarke, Utility Director, SUBJECT: Approval to Modify Sewer Connection Fees to be Based on Actual Water Usage at 379 S. La Cadena Drive DATE: April 14,1998 BACKGROUND The Department has been approached by more that one potential customer developing a coin-operated laundry to modify or defer the sewer connection charges. The customers contend that the fees are not appropriate and create an economic hardship in opening the business. DISCUSSION /ANAL YSIS The current rules mandate that the Wastewater Division assess a charge of $3,000 per washing machine to connect to the City sewer system. These charges are based on consumptive use and grater characteristics that are now somewhat dated. Machines are now more water conscious and the chemical composition of detergents and laundry additives is more environmentally friendly. The Utility Staff does not have the authority to change the amount of the assessment stated in the fee schedule. However, there is nothing in the schedule that says the method of collecting the fee cannot be altered. What Staff is proposing to do, is link the sewer connection fee to the amount of water used by the laundry. tinder this approach, the equipment manufacturer's water use specifications would set the basis of estimating the amount of water used per machine. Industry statistics of average machine usage will then render an approximation of the annual water requirements for the facility. Amortizing the sewer connection fee over the annual water requirements creates an additional sewer charge to the customer, but it alleviates a large front-end charge, which allows the business owner the opportunity to get started and have some certainty of his fixed operating costs. The customer has opted for a five-year amortization period to repay the sewer connection charge. if his business operates at higher volumes than projected, he will pay off the charge earlier. if the opposite occurs, there will be a true -up or balloon payment due at the end of the contract period. In addition, Staff would reserve the right to bring back any revisions to the sewer connection charge for laundries, and offer to recalculate the customer's obligation based on any changes to the existing fees. This item was presented to the Utilities Commission at their regularly scheduled meeting on April 13, 1998. After considerable discussion, the Commission approved the staff recommendation by a 5 to 1 vote. ftem # 22