HomeMy WebLinkAbout2001-059 - Sewer Service FeeRESOLUTION NO. 2001-059
A RESOLUTION OF THE CITY COUNCIL OF THE CiTY OF
SANTA ANA SETTING THE AMOUNT OF THE SEWER
SERVICE FEE ESTABLISHED PURSUANT TO SECTION
39-55 OF THE SANTA ANA MUNICIPAL CODE AND
ADDING SAID FEE TO THE MISCELLANEOUS FEE
SCHEDULE
bk:8/27/01
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
On May 21, 2001 the City Council was presented, at a study session, with
evidence demonstrating that large portions of the City's sewerage system,
located in no one area but citywide, is of sufficient age that it is need of
additional and extraordinary repair and replacement.
The City currently does not levy a fee or charge for the service of
transporting sewerage. This service is a commodity in that the more water
a water customer consumes the greater the sewerage that the customer
generates.
The City's Charter and State law, including but not limited to Government
Code section 54340 et seq., provide that the City may establish
reasonable charges and fees for the service the City provides in
transporting sewerage to the Orange County publicly owned treatment
works and related infrastructure.
A fee for this service would not duplicate any existing fee, charge, levy or
other toll currently collected by the City or any public agency, and would
be distinct and separate from any current or future (i) sewer standby or
availability charge or assessment, (ii)special benefit assessment of
special tax imposed pursuant to state or local law, (iii) sewer connection
charge or sewer capacity charge paid in connection with or as a condition
of approving an application for sewer service, or (iv) any mitigation fee
imposed on new development pursuant to state law (Government Code
§ 66000 et seq.) or local law.
This fee would not be charged, because no sewerage service is being
provided, to raw land, vacant property (i.e., where no water service is being
provided), to a customer who is consuming no water, to a water customer
Resolution No, 2001-059
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who is directly connected to a county owned sewer, or to a water customer
whose only water consumption is for fire service or irrigation.
The moneys collected by such a service fee would be placed into a fund that
would be used only to repair, replace and pen~orm preventative maintenance
on city owned sewer mains or sewer trunk lines, and associated costs. In
addition, in a change to current policy, the City could use such funds to
repair and replace that portion of the sewer customer's lateral that lies within
the public right of way when necessary. No moneys from this fund would go
to the city's general fund.
The money collected by the sewer service fee has been conservatively set;
the fee will not pay for all the costs of the program which are estimated to be
almost $3.6 million per year. Exhibit A to this resolution, showing the
estimated costs of the program is attached hereto as Exhibit A and
incorporated herein by this reference as though fully set forth. The fee
established by this resolution is estimated to collect $2.3 million per year.
The Council recognizes and understands that not all potable water
consumed by a water utility customer is discharged into the city-owned
sewer system and facilities. A small percentage is consumed or is used for
irrigation. In establishing this fee, the Council recognizes and understands
that it could reach the same fee by setting a higher fee and then discounting
the fee by ten or twenty percent to make up for water consumed or used for
irrigation. Of course, those water utility customers whose water is used
exclusively for irrigation or fire service are exempt from this sewer service
fee if there water usage is separately metered.
The City Council incorporates herein, as though fully set forth, the Request
For Council Action accompanying this resolution, and all background
information and studies presented to the City Council at the September 4,
2001 meeting, the City Council study sessions leading up to adoption of the
2001-2001 budget, and the May 21, 2001 City Council study session.
Section 2. The City Council hereby establishes the following sewer service
A sewer service fee for water utility customers of $0.12 per water unit is
hereby established.
No water utility customer shall be assessed a sewer service fee for that
amount of water usage which exceeds 4,167 units in a single month (or
8,333 units in a two-month billing period).
For any person who receives potable water service from a municipal water
provider other than the City or from a private water provider, and who
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discharges into the city-owned sewer system and facilities, the sewer
service fee shall be $0.12 per water unit, if the City is able to determine
the metered water usage of the person. If not, then the Executive Director
of Public Works or designee shall set a sewer service fee of $2.40 per
month per single family home, and fees for other uses accordingly.
Do
The City shall commence collecting this sewer service fee on November 1,
2001 or as soon thereafter as is practicable in the opinion of the Executive
Director of Finance.
No sewer service fee shall be levied against a water utility customer or
person exempt pursuant to Code section 33-59.3.
Section 3. Beginning July 1, 2002, at the commencement of each fiscal year,
this sewer service fee shall annually be increased by an amount equal to the change
since the last increase in the Consumer Price Index For All Urban Consumers ("CPI-U")
for the Los Angeles-Riverside-Orange County region. Should a proposed CPI-U
increase for any fiscal year not accurately reflect the increase in the City's costs to
undertake the program set forth in this Resolution, then the Executive Director of the
Public Works Agency, or designee is directed to place before the City Council a
proposal to either (a) not increase the sewer service fee by the full change in the CPI-U,
or (b) increase the sewer service fee by more than the change in the CPi-U.
Section4. This Resolution shall take effect upon the effective date of
Ordinance No. NS-2479, and the Clerk of the Council shall attest to and certify the vote
adopting this Resolution. Should said Ordinance not be adopted, or should said
Ordinance not become effective, this Resolution shall be deemed null and void and of
no further effect.
Sec~tion~5. That without further action of the City Council this sewer service fee
shall be incorporated into the City's Miscellaneous Fee Schedule.
ADOPTED this 4th day of SePtember. 2001.
Resolution No. 2001-059
Page 3 of 7
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
/Chie~/Assistaht City Attorney
AYES:
NOES:
ABSTAIN:
Councilmembers: Bist, Franklin, McGuigan, Pulido, Solorio (53
Councilmembers: Christy (1)
Councilmembers: None
NOT PRESENT:Councilmembers: Alvarez {'1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No, 2001-059 to be the original resolution aaopted by the City
Council of the City of Santa Ana on September 4, 2001.
Date:
Resolution No. 2001-059
Page 4 of 7
EXHIBIT A
NEW SEWER ENTERPRISE PROGRAM COST ANALYSIS
STAFF COSTS
Staff required to implement the proposed program are as follows:
Associate engineer ................................. - $86,000 (B step)
Assistant Engineer .................................. - $64,000 (B step)
Intern ...................................................... - $13,000 (A step)
Consulting services ................................ - $130,000
Total annual staff cost ............................. = $293,000
OVERHEAD COSTS
Overhead costs include office supplies, equipment rental, insurance, strategic plan,
indirect costs, Treasury customer services charges, and PW admin charges.
Using the Water Administration and Engineering budget, these charges would pre-rate
to the following:
Office supplies ........................................ = $20,000
Equipment rental ..................................... = $15,000
Insurance ............................................... = $86,300
Information Systems Strategic Plan ........ = $81,200
Indirect costs ........................................... = $66,000
Public Works admin charges .................. = $76,000
Treasury customer services charges ...... = $101.700
Total ........................................................ = $446.200
SEWER VIDEO PROGRAM
Video all sewer mains in system every 25 years.
450 miles / 25 years = 18 miles per year = 95,040 feet per year.
95,040 feet per year = at $0.70 per foot = $66,530, use $67.000 per year.
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EMERGENCY SEWER LATERAL REPLACEMENTS
Current requests for sewer lateral repairs/replacements are approximately 50 per year.
City would retain a contractor to provide emergency replacements, estimated cost is
$4,500 per lateral on an individual basis.
50 laterals per year x $4,500 per lateral = $225.000 per year.
SEWER MAIN REPLACEMENTS
Assume 450 miles of sewer main, 8,000 manholes, 45,000 laterals.
If all facilities are assumed to have a life expectancy of 100 years, the annual
replacement schedule would be as follows:
4.5 miles of sewer main.
80 manholes.
400 sewer laterals (Total will actually be 450, but 50 are replaced under emergency
basis).
Assumptions:
· Majority (90%) of sewer replacement will be 8".
· Average sewer lateral is 4" in size and 30 feet in length.
Estimated construction costs (including design and administration):
· 8" sewer main = $70 per lineal foot.
· Replace lateral = $1,500 each.
· Replace manhole = $3,800 each.
Annual program construction costs:
4.5 miles of new mains .......................... = $1,663,200
400 laterals ............................................. = $600,000
80 manholes ........................................... = $304,000
Total ........................................................ = $2,567,200
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TOTAL PROGRAM COSTS
Construction ............................................ = $2,567,200
Staff ........................................................ = $293,000
Overhead costs ....................................... = $446,200
Videotaping ............................................. = $67,000
Emergency lateral replacements ............ = $225,000
Total program costs ............................... = $3,598,400
Resolution No. 2001-059
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