1997 AGN JUN 17 I17 - Laserfiche WebLink

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AGENDA REPORT For the Council Meeting of June 17, 1997 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: GRACIE FERNANDEZ HARMON, ACTING CITY MANAGER,,,,W FROM: THOMAS K. CLARKE, UTILITY DIRECTORT_�� 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 I DATE: MAY 22,1997 BACKGROUND: On May 18, 1993, Council adopted Resolution No. R-34-93 setting sewer charges for residential customers at $12.50/mo., including each dwelling unit within a multi -family or condominium, and $0.59/ccf of water used per month for commercial/industrial customers, including all multi -family or condominium common areas (pools, laundry rooms, restrooms and clubhouses). After the adoption of the Resolution, staff received many requests by the multi -family and condominium owners and managers to more equitably distribute these costs. On December 5, 1995, Council approved Resolution No. R-121-95 setting the common areas commercial sewer charges at $0.39/ccf of water used per month ($12.50/mo. minimum). Since the July, 1996 sewer rate increase, staff again received requests to more equitably distribute the sewer usage charges. In December, 1996, the Utilities Commission recommended another change to the multi -family or condominium sewer charges. . DISCUSSION/ANALYSIS OF MULTI -FAMILY UNITS: In its simplest form-, the problem has arisen out of the fact that the complexes are billed twice, once for commercial and once for residential sewer service. They receive a bill for the amount of water measured through the water meter same as commercial accounts, due to the sewer usage of common areas. In addition, the complex is also billed on a per unit basis for residential service. This creates a situation whereby these accounts appear to be paying twice for the same service. However, the utility does not over-coilect twice for the same service, instead, these customers are receiving two bills for two different services. The situation is one of equitably charging for the different types of sewer services provided by the City. However, the remedy to establish the equity has a downside. In order to more fairly distribute the costs, the Utility will incur a revenue reduction. To reconcile the two, staff has analyzed the relative costs to serve the classes of service and have determined that an adjustment to the multi -family accounts is justified and -that the results on the revenue to the utility will be minimized. Page I of 3 Item No. 17