HomeMy WebLinkAboutRES NO 066-01RESOLUTION NO. 0 6 6 ' 0 I
A RESOLUTION ESTABLISHING SEWER AND
STORM SEWER SERVICE USER CHARGES.
WHEREAS, Chapter 14.2 of the Bakersfield Municipal Code authorizes the
establishment and increase of fees and charges to recover costs for services rendered;
and
WHEREAS, a public hearing before the City Council was advertised twice in the
Bakersfield Californian, a newspaper of general circulation; and
WHEREAS, a public hearing was held to determine whether the proposed fees and
charges are discriminatory or excessive; and
WHEREAS, the fees and charges set forth in Exhibit "A," attached hereto and
incorporated by reference, do not exceed the reasonable estimated cost of providing the
services for which the fees are charged; and
WHEREAS, the proposed fees were derived from the Updated Revenue Program,
executive summary attached as Exhibit "B," and incorporated herein by reference,
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CiTY OF
BAKERSFIELD AS FOLLOWS:
The above recitals and findings are true and correct and are incorporated
herein by reference.
The fees and charges set forth in Exhibit "A," are hereby adopted and shall
become effective on July 1,2001.
The City Council hereby approves the Updated Revenue Program as of this
date.
4. The adoption of these fees and charges complies with Proposition 218.
Pursuant to the Bakersfield Municipal Code, the fees and charges herein
shall be collected by the Kern County Tax collector on the property tax rolls.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on MAY 16 Zl~ ,
by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCIL MEMBER CARSON, BENHAM, HANSON, MAGGARD, COUCH, SULLIVAN, SALVAGGIO
COUNCIL MEMBER ,-'~
COUNCIL MEMBER
COUNCIL MEMBER
CITY CLERK and Ex Officio CJ~'rk of the
Council of the City of Bakersf'~ld
APPROVED MAY 16 ZOO1
APPROVED AS TO FORM:
BART J. THILTGEN
CITY ATTORNEY
By: : {.~ '"')~,~- ~ ~'.~'-~
/ ALAN~37~. DANI~ -.-:~
~ Deputy City Attorney
S:\COUNClL\Resos\SewerUserFeeRes-01-02 wpd
-- April 25, 2001
SEWER USER FEES AND CHARGES
FLAT RATE SCHEDULE
FISCAL YEAR 2001-02
EXHIBIT A
Assessor Use Code Description SFDE Charge
0100 - 0106 Single Family Residence 1 $117.00
0200 - 0602 Multiple DweLling 0.786 $92.00 /unit
0107 - 0199, 2900 Mobile Home, Mobile Home Park 0.786 $92.00 /unit
1100 Small Store and Shop 1 $117.00
1200 Combination Store & Office 1 $117.00
1300 Large Store 1.5 $175.50
1400 Market 1.5 $175.50
1600, 2100 Office & Financial Bldg 1.5 $175.50
1701 Hospital 0.3392 * $39.68 /bed
1703, 1712, 1714 Rest Home, Retirement Home, etc. 1.5 $175.50
1704, 1705 Medical Lab, Ambulance 1.5 $175.50
1706 Church 1 $117.00
1707-1709 Mortuary, etc. 1.5 $175.50
1710, 1713 Schools, Day Care Center 0.0324 ** $3.79 /student
1800 Food or Beverage 1.5 $175.50
1900 Recreational 1.5 $175.50
2201 Car Wash 1.5 $175.50
2202-2290 Service Shop 1.5 $175.50
2300 Petroleum 1.5 $175.50
2400, 3800 Sales, Industrial Sales 1.5 $175.50
2600 Nurseries 1 $117.00
2700, 2800 Hotel-Motel 0.3 $35.10 /room
2901 Travel Trailer or R.V. Park 0.3 $35.10 /space
3100, 3200 Light & Heavy Industry 1.5 $175.50
3300, 3400 Timber & Produce Plant 1.5 $175.50
3500 Food Processing 1.5 $175.50
3600, 3700 Storage-Warehouse 1.5 $175.50
* year I of 7-yearphase-in period.
** year I of 5-year phase-in period.
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SEWER USER FEES AND CHARGES
MISCELLANEOUS SCHEDULE
FISCAL YEAR 2001-02
EXHIBIT A
Surcharqe Schedule - Commercial and Industrial
This schedule shall apply to the commercial and industrial users with flow, BOD, and TSS
greater than the Flat Rate limits. The surcharge for the excesses shall be as follows:
Flow, MG
BOD, mg/L
TSS, mg/L
FY 2001-02
$597.00/MG/yr.
$62.00/1000 lb.
$71.00/1000 lb.
FY 2002-03
$722.00/MG/yr.
$62.00/1000 lb.
$71.00/1000 lb.
FY 2003-04
$847.00/MG~r.
$62.00/10001b.
$71.00/10001b.
The proposed rates for FY 2002~03 and FY 2003/04 do not include any potential
inflationary increases.
aFIow will be estimated based on water consumption records during the three (3) winter
months from December to February.
II.
Septic Discharges
The rate per gallon, shall be $0.02.
Ill.
Surcharge for Outside Septic Discharqes
The rate per gallon, shall be $0.02. This surcharge is to recover capital
expenditures and administrative costs.
IV.
Surcharqe for Outside Users
$54.00/yr./connection
This surcharge includes two components:
1. Charges per BMC 14.16.050:
$30.00/yr/connection for a capacity charge, which shall be for the purpose of
reserving a portion of City's trunkline and sewage treatment facilities for the
applicant. (Typical for single family dwelling, see BMC for other uses); and
2. $24.00/yr./connection for recovery of subsequent City capital costs.
V. Industrial Waste Discharqe Monitorin;]
1. Discharge monitoring annual fee
2. Noncompliance re-inspections
3. Outside laboratory testing fees
$550.00
$550.00
actualcosts
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SEWER USER FEES AND CHARGES (CONT.)
MISCELLANEOUS SCHEDULE
FISCAL YEAR 2001-02
VI. Wastewater Services - Other Aqenc es
1. East Niles Community Services Dist.
2. Kern Sanitation Authority
3. County Service Area 71
$424,721.00(Est.)
$140,043.00(Est.)
$44,200.00(Est.)
Wastewater service is provided for these unincorporated areas.
EXHIBIT A
VII. Connection Fee For Maior Industrial Discharqer
Unit Rates: Based on maximum month loadings.
Flow $0.68/gpd
BOD $468/ppd
TSS $149/ppd
VIII. Wastewater/Stormsewer Apportionment
The rates contained in this exhibit cover 100% of costs reasonably incurred in providing
the operation, maintenance, replacement, and capital improvements of the wastewater
plants, sewers, and storm sewer systems. Ninety -two (92) percent of said rates are
attributable to sanitary sewer use, maintenance, replacement and improvements and eight
(8) percent of said rates are attributable to storm sewer use, maintenance, replacement
and improvements.
Definitions:
BOD - Means "biochemical oxygen demand"
TSS - Means "total suspended solids"
mg/L - Means "milligrams per liter"
SFDE - Means "single family dwelling equivalent"
S:\B-BUDGE'~SEWERFEE\fee 01-02.wpd
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EXHIBIT B
REVENUE PROGRAM
FOR
CITY OF BAKERSFIELD
Kern County, California
WASTEWATER AND
STORMWATER FACILITIES
Budget Year 2001 - 2002
April 2001
(),~iG INA[
EXECUTIVE SUMMARY
The City of Bakersfield has a revenue program for its wastewater treatment and collection system.
The revenue program was developed in 1978 and satisfied the revenue needs for the City's system
at that time, which included Wastewater Treatment Plant No. 1 (WWTP1), Wastewater Treatment
Plant No. 2 (WWTP2) and Wastewater Treatment Plant No. 3 (WWTP3). However, with capital
expenditures occurring since 1978, including expansions to WWTP2 and WWTP3, some involving
State Revolving Loan Funds, the City is required to update its Revenue Program.
This revenue program was developed in conformance with the publication, "Policy For
Implementing The State Revolving Fund For Construction Of Wastewater Treatment Facilities, 98-2
CWP, February 1995, Amended on January 18, 1998" published by the State Water Resources
Control Board, California Environmental Protection Agency. The goals of this revenue program
were to establish user rates for residential, commercial and industrial users and demonstrate that
revenue from the existing connection fees will adequately service existing debt including SRF debt.
User Rates
It was determined that the annual Single Family Dwelling (SFD) user rate for FY 2001-2002 should
be $117.00. No rate change is proposed for multiple dwellings or mobile homes for FY01-02.
Existing SFD ratios were evaluated and modified accordingly for the various domestic and
commercial users using the SFD rate and the quality and quantity of wastewater expected from
these dischargers. Surcharge rates for users whose flows and wastewater strengths are greater
than SFD's were determined. It was calculated that the surcharge rates should be $847 per million
gallons for flow, $62 per thousand pounds for Biochemical Oxygen Demand (BOD), and $71 per
thousand pounds for Suspended Solids (SS).
City of Bakersfield
Final Revenue Program
BK-B30-120-10
Residential user groups comprise 94% of all customers. Commercial and industrial user groups
comprise 6% of all customers. Annual flat rate fees for 58% of commercial and industrial
customers will increase 9%, from $161.00 to $175.50. However, 38% of the commercial and
industrial customers will actually realize a flat rate fee decrease.
Schools and hospitals, 2.7% of the commercial and industrial users, will have a flat rate fee
increase above 9%. The rate increase for hospitals will be limited to 15% per year and will be
phased in over 7 years. The rate increase for schools will be phased in over 5 years.
Surcharge fees for commercial and industrial users who may exceed the flat rate volumes will also
be phased in over 3-year period. Any future cost of living adjustments will be added during the
phase-in periods.
Any shortfalls that may result during the phase-in periods would be relatively minimal and can be
absorbed by the Wastewater Replacement Fund balance, and possibly by greater than anticipated
connection fees.
Connection Fees
In addition to the user rates, the current connection fees were evaluated for future users to pay for
debt service. The debt service for FY 2001-2002 will be approximately $4.9 million. Based on 2,000
new connections annually and the FY 2001-2002 connection fee of $2,200, the debt paid by
connection fees will be $4.4 million. The remaining annual debt balance of approximately $0.5
mitlion will be paid through the Wastewater Replacement Fund, assuming that revenues from future
connections do not meet the annual payment requirement.
City of Bakersfield
Final Revenue Program
BK-B30-120-10
BAKERSFIELD
PUBLIC WORKS DEPARTMENT
MEMORANDUM
TO: BUDGET AND FINANCE COMMITTEE
DATE:i'~ May 3, 2001
SUBJECT: Budget and Finance Committee Meeting- Agenda
Item 4.B. (Wastewater Revenue Program)
At the April 25th Council Meeting, Agenda Item 9.f. (sewer user charges) was referred to the
Budget and Finance Committee. Staff was instructed to contact the State Regulatory Agency to
determine if the proposed flat rate increases for hospitals, schools, and nursing homes could be
phased in over 5 years, rather than staff's recommended 3 year phasc-in period.
Attachment A is staff's e-mail to the regulatory State Agency asking what phase-in time period
would be acceptable with their office. Attachment B is their response. The State has indicated
acceptance of a revenue program which schedules flat rate increases for hospitals, schools, and
nursing homes over a period of years so that the rate increase is limited to approximately 15%
per year, plus cost of living increases. Staff then contacted the State by phone, and the State
agreed that a 5 year phase-in period for flat rates would also be acceptable.
Attachment C summarizes various funding options, and the resulting subsidy, for phasing in flat
rate increases. It is important to note that each of the phase-in options include no provision for
future cost of living adjustments. The 3 options included on Attachment C are:
Option 1 - Summarizes staffrecommended 3 year phase-in period.
Option 2 - Reflects method suggested by State - phase-in rate increases for hospitals,
schools, and nursing schools over a period of years so that the increase is limited to
approximately 15% per year plus cost of living increases.
Option 3 - Summarizes a 5 year phase-in period.
Attachments D, E, and F arc graphic cxamplcs oF how scwcr rates Ibr hospilal, nursing homes,
and schools within the City of Bakersfield compare with othcr surveyed cities. These graphs
reflect the full proposed sewer user ['cc [`or thc City of Bakcrslicld.
Attachment G is a copy oFa memo, prepared by thc Fin;moo I)cl>;u'lmcnl, on lifts issue. This
mcmo shows that the annual dcbt service would bc much higher il' Sewer Rcvcnuc Bonds wcrc
issued For the recent Treatment Plants Expansion/Upgrade Project rather than State Revolving
Loan Funds. This State Revolving Loan Fund is a Iow interest loan to bc uscd for 'l'rcatmcnl
Plants. Part of the assurances the City agrccd to in accel>ting this loan, was to adopt an updalcd
Revenue Program Guide.
In rccent correspondence (Attachment I 1), thc State mentions possible IJSEPA sanctions and
penalties regarding both thc Cty s 1979 $22.2 mllhon (lean Walcr (h:ml and lhc 1997 $18.5
million State Revolving Fund Ioaa iF thc City fifils to adopt an updated Revenue Program.
cc: Alan Tandy, City Manager
Attachment A
From:
To:
Date:
Subject:
Joe Turner
inet:blairr@cwp.swrcb.ca.gov
4/27/01 3:46PM
City of Bakersfield's Updated Revenue Program
The City's updated revenue program is completed. On 2-28-01, a report of the updated program and the
proposed rate changes were presented to the City Council for informational purposes and to let them
know public notices would be published and a hearing would be conducted to consider adoption of the
rates and approval of the program. The updated program included a planned 3 year phase-in period for
hospitals, schools, and nursing homes since they were the only user groups that would receive a fiat rate
fee increase above 9%. Their increases will be 103.48%, 31.09%, and 69.57% respectively. Surcharge
fees for commercial and industrial users who may exceed the fiat rate volumes were also going to be
phased in over a 3 year period.
On 4-25-01, the hearing to adopt a resolution establishing the sewer fees and approval of the revenue
program was held before the City Council. A question of concern came up regarding the percent increase
for the user groups mentioned above. The question that came up was that since the increases would be
so significant, could the phase in time period for these fees be extended longer than 3 years?
As a result, could you please let me know what longer phase in time period would be acceptable with your
office.
Thank you for your assistance.
CC:
Brad Underwood; Georgina Lorenzi; Jack LaRochelle
Attachment B
From: "Ron Blair" <Blairr@cwp.swrcb.ca.gov>
To: <jturner@ci.bakersfield.ca.us>
Date: 4/30/01 11:32AM
Subject: Wastewater Rates
I have reviewed your email of April 27, 2001, regarding implementation of new wastewater rates in the City
of Bakersfield. Your email requested clarification of how much time would be allowed for the City to fully
implement increases in wastewater rates that were in excess of 9%.
I will approve a wastewater revenue program that, subject to all other requirements of the SWRCB's
Revenue Program Guidelines, schedules increases for commercial users (such as hospitals, schools and
nursing homes) over a period of years so that the maximum rate increase is limited to approximately 15%
per year plus cost of living increases. Such a program would mean that the full implementation of the
scheduled increase for "hospitals" would occur over a seven (7) year period.
Any decision to delay immediate implementation of full rate increases will be the City's decision. There is
nothing in our guidelines that requires or encourages staged implementation of significant rate increases.
Our agreement to approve a staged program is made in the spirit of reasonableness and accommodation
for those business that may be adversely effected by an unexpected large rate increase.
Attachment C
Impact of Phasing in Flat Rates for Hospitals, Nursing Homes, and Schools
For 2001/02 FY
This schedule excludes future inflationary increases.
Hospitals
Nursing Homes
Schools
(7 hospitals, 892 beds total)
(93 nursing homes, 3,421 beds total)
(139 schools, and 73,476 students total)
Option 1
I Current Three year phase in optionI
Rate Year One Year Two Year Three
Hospitals/per bed rate $34.50 $46.40 $58.30 $70.20
Nursing Homes/per bed rate $34.50 $42.50 $50.50 $58.50
Schools/per sludenl rate $3.57 $3~94 $4.31 $4.68
Annual Subsidy $130,338 $65,169 $0
I Current
Rate
Year One Year Two
Option 2
15% per year phase-in option
Year Three Year Four Year Five
Year Six
Year Seven
Hospitals/per bed $34.50 $39.68 $44.86 $50.04
Nursing Homes/per bed rate $34.50 $39.68 $44.86 $50.04
Schools/per student rate $3.57 $4.11 $4.65 $4.68
Annual Subsidy $133,488 $71,470 $46,924
$55.22 $60.40 $65.58 $70.20
$55.22 $58.50 N/A N/A
N/A N/A N/A N/A
$24,583 $8,742 $4,121 $0
Option 3
ICurrent Five year phase in option
Rate Year One Year Two Year Three Year Four
Year Five
Hospitals/per bed $34.50 $41.64 $48.78 $55.92
Nursing Homes/per bed rate $34.50 $39.30 $44.10 $48.90
Schools/per student rate $3.57 $3.79 $4.01 $4.23
Annual Subsidy $156,552 $117,598 $78,644
$63.06
$53.70
$4.45
$39,689
$70.20
$58.5O
$4.68
$0
ICumulative
Subsidy
$195,507
$289,328
$392,483
rev prog guide-B&Fpb pam abe.wb31
,~ ..... Attachment D
Hospital Rates per Bed, 2000-01
Compare with San Joaquin Hospital
Pleasanton+
Oxnard
Modesto+
Stockton
Redlands
Riverside
San Bernardino
Visalia
Fresno
BAKERSFIELD
Fiscal Year 2001-02
$0 $100 $200 $300 $400 $500
$600
I
$7oo
+ Indicates additional administrative/surcharges
G:\GROUPDAT~Georgina\Memos 2001\grph hos-nurs-schl-update.wb3 05/03/01
Attachment E
Nursing Home Rates per Bed, 2000-01
Compare with Truxtun Manor
Pleasanton+
Oxnard
Modesto+
BAKERSFIELD
Redlands
Riverside
Stockton
San Bernardino
Visalia
Fresno
Fiscal Year 2001-02
I
$0 $20 $40 $60
$8O $100 $120
I
$i40
+ Indicates additional administrative/surcharges
G:\GROUPDAT~Georgina~Memos 2001 ~,grph hos-nurs-sch6update.wb3 05/03101
Attachment F
,School Rates per Student, 2000-01
Compare with Fruitvale School District
Oxnard
Riverside
San Bernardino
Pleasanton
Fresno+
Modesto+
Stockton
BAKERSFIELD
Visalia
Redlands
Fiscal Year 2001-02
I
$0 $5 $10 $15
$20
$25
$30
$35
+ Indicates additional administrative/surcharges
I
$40
G:\GROUPDAT~Georgina\Memos 2001\grph hos-nurs-schf-update.wb3 05/03/01
ATTACHHi~qT
MEMOI~NDUM
APRIL 30. 2001
TO:
FROM:
SUBJECT:
ALAN TANDY. CITY MANAGER
GREGORY J. KLIMKO, FrNANCE DIRECTOR
SEWER SERVICE USER CHARGES 2001-02
TEe subject was referred to the 4:00 pm Y, lay 3, 2001 Budget and Finance
Co,'~mittee by' t!'.e City Council at their April 25. 2001 council meeting. The City'
'_-.as an authorized loan of 5!5.927.848 from, the State Water Resources Con:rol
B~ard for the.,.~n,r .... expansion of Wastewater Treatment Plant No, _° From 19 to 25
MGD's. The loan is technically a "zero interest" loan which provides for a
payback ofS15.455,235 over twenty years. This results in a t~e interest cost of
!.45°,a.
If the City does not adopt a State approved revenue pro,am by Jul.,,' 1. 2001 this
loan ma.',' become due. If we have to finance the loan payback with Sewer Revenue
Bonds the pa?u: would be much ~eater. A comparative schedule t'oilows.
State Sewer
Revol~ing Re~ enue
Loan Bonds
Debt Issue:
Gross 15,927,848 16.315.000
Dirt%fence
Net 13,9_/,$~$ I_,9__,000
Term 20 Years 20 Years
Total Debt Service (20 Years) 18,4>8._.~ 26.064,565 7.606,330
Average Annual Debt Service 922.911
1.303,228 380.317
Effective Interest Rate
1.45% 5.239&
S: KimG Gregory,,.',, cmo - TandvSe;~erSer,.icep. vpd
Winston H. Hickox
. RightFAY.~ 661 3Z~,1027,
State water l<esources .ontrol t oara
Division of Clean Water Programs
2014 T S~t - S~r~rncnln. C~lifomia 95814 · (916) 227-4400
Mailing Addr~s: P.O. Box 9a4212 · Sacramento, C. alifomia · ~2~-2120
F~ (916)2274349 · ln{cm=t Address: h~/~'.s~b.ca gov
A~AC~ "H" PAGE 1 of 2
Pa§e ~
Gray Day;,
CERTIFIED MAIL NO. Z 444 487 672
Return Receipt Requested
Ma'. Alan Tandy
City Manager
City of Bakersfield
1501 Truxtun Avenue
Bakersfield, CA 93301
Dear Mr. Tandy:
FINAL REVENUE PROGRAM REQUIREMENT - CITY OF BAKERSFIELD (CITY) Co~PGILa, DE
AND EXPANSION OF TREATMENT PLANT NO. 2), STATE REVOL'vTNG FL:,'N~D (SR.F) LOAN
PROIECT NO. C-06-4321-110, CONTRACT NO. 7-806-550-0
Our records indicate the CiD, does not have an approved final Wastewater Revenue Program as
required by the above referenced SKF loan contract between the City and the State Water
Resources Control Boa.rd. Section 16 of thc above referenced contract reads as follows:
SECTION 16. USER CHARGE SYSTEM.
The Agency shall adopt and maintain in effect a user charge system wb. ich at all times
complies with the requirements of Section 204(b)(1) of the federal Clean Water Act
a~d applicable federal and state rules, regulations and guidelines.
Exhibit G, Article 8(A) of the above referenced contract reads as follows:
AP, TICLE 8. R~VENUE PROGRAM,
(A)
Thc agency agrees to prepare and provide an acceptable final Revenue Program to
the Division at the time ofg0 percent disbursement of loan funds. Further loan
disbursements may be withheld until an acceptable final Revenue Progm-m is
submitted. The Agency further agrees to periodically review and modify the
Revenue Program as necessary to assure reasonable adequacy of the Revenue
Program. The final Revenue Program and all modifications thereof shall be
consistent with applicable guidelines and shall be to the reasonable satisfaction of
the Division. The Division may review the Agency's records to assure
compliance with the approved Revenue Program at any time during the useful life
of the project.
California Environmental Protection Agency
~/~/~1 16;S?;16 Ri~htFA×-> 661 ~Z8 10Z7 Ri~btFAX ?~g~ BBZ
Mr. Alan Tandy
ATTACH/~IEIN-T "H" PAGE 2 of 2
AU 3I 2000
The City has not complied with the requirements of the loan contract. It has been over one year
since the project reached 90 percent completion. We have returned several of the City's
disbursement requests with instructions to submit a final wastewater revenue program. City staff
have been contacted several times by telephone to request the required information. To date, no
wastewater Revenue Program subrrdttal has been received.
The City is in violation of Section 16 and Exhibit G, Article 8 of the SRF loan contract.
A copy of the appropriate contxact documents is enclosed. Please submit a final Revenue
Program for our review with a copy of an adopted ordinance or resolution enacting the rates and
charges set forth in the final Revenue Program as soon as possible, but no later than
December 1, 2000.
Please note that in 1975, 1976, and 1979 the City was a recipient of federal and state Clean
Water Grants totaling $22,173,682. As a condition of receiv/ng the Clean Water Grants the City
gave assurances that they would maintain a wastewater revenue program that complied vdth the
requ/rements of the Clean Water Act and appropriate United States Env~ronmenlal Protection
Agency 03SEPA) regulations. If the City's existing wastewater rates do not comply with the
requirements of Section 204(b)(1) of the federal Clean Water Act, the City may be subject to
USEPA sanctions and penalties.
If you have an)' questions about this letter, please contact Mr. Ronald Blair at (916) 227 4489.
Sincerely,
Chief
Division of Clean Water Programs
Enclosure
Ms. Alexis Straxtss, Chief
Water Management Division
Environmental Protecdon Agency, Region 9
75 Hawthorne Street
San Francisco, CA 94103
California Environmental Protection Agency