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HomeMy WebLinkAboutOB 1 WATER RATES 02-17-81DATE: February 9, 1981 OLD BUSINESS Inter-Corn TO: FROM: SUBJECT: HONORABT,R MAYOR AND CITY COUNCIL DAN BLANK~I~SHIP, CITY ADMINISTRATOR PNDPOSED WATER RATES, FEES AND CHARGES Attached is a memorandum from Dale Wick explaining further the proposed water service charges. The proposed charges are, in our opinion, consistent with all of the assurances given water users during the public discussion of the acquisition. First, all rates are equal regardless of City or unincorporated area location of the user. Secondly, the actual water rates remain'unchanged from those in effect prior to the transfer to the City. Thirdly, the new charges are on new developments, which are consistent with other ~unicipal water services, to protect the existing users from bearing costs related to those new services. There are a few charges such as delinquent account turn cn charges whid~ have been increased to reflect more accurately the cost of the service provided. These proposed rates, fees and charges are recommended for approval in order to establish a fair and complete system of charges related to the work on service provided. The Staff does not envision any actual rate increase until July 1, 1981, but plans public hearings in June to fully discuss the issue. The July rate increae will be reasonably related to the consumer price index and specific increases in service costs such as water, labor and energy. RECOMMEND~DACTION: Adopt Resolution No. 81-9 City Administrator DB:dmt DATE: FEBI~3A/~ 10, 198 1 Inter-Corn TO: DAN BLANKENSHIP, CITY ADMINISTRATOR FROH: DALE WICK, ASSISTANT CITY ENGINEER SUBJECT:FURTHER EXPLANATION OF RESOLUTION ESTABLISHING k~ATER USAGE RATES, FEES AND SERVICE CHARGES As requested by the City Council, following is further explanation of subject resolution and hc~ the various fees and ~harges were arrived at: SECTION I - These are fees to cover administration and staff time in d~ecking plans and inspection of water system construction. They are similar to fees charged developers for other public improvement items and amount to less than 2% of the actual construction cost of the item. Previous to the City ao~uisition, Tustin Water Works charged developers for water system installation. Included in this charge was a 15% surcharge to cover administration and inspection. As a public utility, they were required to pay back this amount on the basis of 22~ for every dollars worth of water sold in the tract served by the water system. This resulted in a payback time of 12 years to a maxiuaum of 25 years. As a city utility, developers will install their own water system to City standards and specifications similar to requirements of other public improvements .... SECTION II - These are charges established by the Tustin Water Service for furnishing and installing water m~ters. As a public utility, Tustin Water Works was required to furnish and install meters at no charge. AS a city utility, it is standard practice to charge for furnishing and installing. Tabulated below are similar charges by two other cities compared to Tustin's proposed charge: CITY OF CITY OF TUSTIN PROPOSED ORANGE SANTA ANA 5/8"x3/4" Meter $ 65.00 $100 to $130' $ 55.00 1" Meter 125.00 150 to ~180' 95.00 1 1/2" Meter 285.00 None Given 240~00 2" Meter 390.00 " " 300.00 3" Meter 620.00 " " None Given 4" Meter 1,100.00 " " " " * Dependent on number of meters'per development The City of Orange had no c~harges listed for furnishing and installing meters only, for sizes larger than 1". It appears Orange installs the service from the main to property line including the meter for larger services. For example, they listed a charge of $3,890.00 plus a $150.00 pavement charge if applicable for installation of a 4" service including the 4" meter. The City of Santa Ana had no information listed for meters larger than 2", probaly due to the fact there would be very little need for the larger meters. We have included them in our resolution so that we are covered in the rare event they are requested. W~TER USAGE RATES, FEES AND SERVICE CHARGES FEBN3ARY 10, 1981 PAGE 2 SECTION III - Similar to Section II. There was no data available frcm the City of Orange or Santa Ana on this size meter. The meter cost was arrived at based on actual cost to the City plus an inflation factor. Again, there will be very little call for meters of this size. SECTION IV - This is a variable d~arge for the complete installation of an individual water service. As a public utility, Tustin Water Works could not charge for water service installation if there was a main in the street fronting the house. As a city utility, it is cu,,~on practice to charge for water service installation. Tabulated below are similar charges by other cities for service installation including the meter: 3/4" 1 1/2" 2" 3" 4" Service Service Service Service Service Service CITY OF CITY OF ORANGE SANTA ANA $ 420.00 ~ $425.00 470.00 465.00 840.00 825.00 1,040.00 99'5.00 2,500.00 None Given 4,040.00 " " In our case, it was determined to be more equitable to base the service installation charge on actual cost plus !5% for overhead and administration, since there are so many variable factors involved. SECTION V - These are all miscellaneous fees and deposits which were formerly charged by the Tustin Water Works. Any change frcm that previously charged and the reason for it is as follows: (1) Advance Against Water Usage--no change from that previously charged. (2) Delinquent Account Water Turn On Fee--raised from $10.00 and $15.00 to $15.00 and $20.00 because it was felt that any turn off and turn on would take at least one man hour of labor. (3) Delinquent Account Deposit to Reestablish Credit and Renters or Leasees Deposit--these two items were previously covered under the PUC tariff sheets and have not been changed. (4) Fire Hydrant Meter Deposit--previous charge was $300.00. It was raised to $500.00 because of problems of getting applicant to return meter. (5) Meter Valve Key Deposit--no change from that previously charged. SDCTION VI - This entire section was previously covered under PUC tariff sheets and has not been d~anged. SECTION VII - This entire section was previously covered under PUC tariff sheets and the water rates have not been changed. The wording under the heading entitled '~Water Usage Rates for Unmetered Developments During Construction" was revised to include commercial and industrial units. Previously, this section only included "Dwelling Units" and did not recognize the recent development of industrial and c~m,ercial condominiums. ~TER USAGE RATES, FEES AND SERVICE CHARGES FEB~3AR~ 10, 1981 PAGE 3 SECTION VIII - These are charges of the East Orange County Water District ($500 per unit) of which the city has no control. However, we are required to verify that the fees have been paid before we permit a connection to our system. DALE A. WICK ASSISTANT CITY ENGINEER DAW:db cc: City Clerk City Attorney Tustin Water Service Finance Director DATE: January 22, 1981 CONSENT CALENDAR No. 5 -2-2-81 TO: Dan Blankenship, C~ty Administrator FROR: Dale Wick, Assistant City Engineer · SUBJECT:Establishment of Water Usage Rates, Fees and Service Char§es The purchase of the Tustin Water Works has transferred the responsibility for plan checking and inspection of Domestic Water System construction to the Engineering Division. Consequently we find it necessary to revise our Construction Permit form to include the fees for waterworks items. In addition, Tustin Water Works formefl'y had established various feeS, deposits, and charges, some of which were authorized by P.U.C. regulations and some of which were set as needed to cover the costs involved. With the City takeover of the Waterworks these various fees need official adoption by the City Council and most important'the Water Usage Rates need official adoption by the City Council. The attached resolution es%ablishe~ the various fees, charges, deposits and Water Usage Rates. This resolution was reviewed with the Tustin Water Service staff and the amounts have been established where possible with the thought that the fees and char§es would remain constant for a three year period. In other words, they are high for the first year, realistic for the second year and low for the third year. Further explanation of the resolution follows: SECTION I-These are plan check and inspection fees, similar to that charged developers for street, storm drain and sewer construction. The fees cover the salaries of Engineerin~ Division personnel involved in plan checkin§, design consultation and construction inspection. The fees arrived at are similar to fees for other public improvement items and amount to less than 2% of the actual construction cost of the item. SECTION II-These are charges, established by the Tustin Water Service to cover the cost of furnishing and installing water meters. SECTION III-These are charges established by the Tustin Water Service for furnishing, only, large water meters. The Water Service do'es not install the larger meters due to the equipment required for this work. SECTION IV-This is a variable charge for the complete installation of an individual water service. It is used for example when a party builds a home and wants it connected to the domestic water main. The amount is variable because it depends on the length of the service, the size requested and the thickness of the street pave- ment replacement section required. SECTION V-These are miscellaneous fees and deposits which were formerly char§ed by the ~ustin Water Works. Some of the charges have been increased slightly so that the amounts will be valid for a three year period. SECTION VI-This section officially establishes the Water Usage Rates and Charges which have not been changed from that presently charged. The Fire Line and Detector Establishment of Water Usage Rates, Fees and Service Charges January 22, 1981 Page 2 check valve charges cover the cost of inspecting each fire service detector check valve twice a year and also the cost of any water which may be used, since fire service lines are not metered. SECTION VII-This section officially establishes miscellaneous WaterUsage Rates. The various rates have not been changed from that presently char§ed. SECTION VIII-These are the charges of the East Orange County Water District. It was felt that we should officially adopt their charges and acknowledge our responsibility to verify their payment, since the City could be liable to pay the charges if we permit a connection without payment. RECOMMENDATION: It is recommended that the Tustin City Council at their meeting of February 2nd, 1981 adopt the attached resolution establishing certain Tustin Water Service Fees, Charges, Deposits, and Water Usage Rates. Dale A. Wick Assistant City Engineer Attachment cc: City Clerk City Attorney Tustin Water Service Finance Director 1 2 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 32 RESOLUTIOn4 NO. 81-9 A RESOLUTION OF THE CITY COU~ICIL OF. THE CITY OF TUSTIN, CALIFORNIA, ESTABLISHING CERTAIN TUSTIN WATER SERVICE FEES, CHARGES, DEPOSITS AND WATER USAGE RATES. WHEREAS, the City of Tustin did purchase the Tustin Waterworks now known as the City of Tustin Water Service. AND WHEREAS, it has become necessary to establish water usage rates ar,d certain fees, charges and deposits for administration and material costs. NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve as follows: Section I - The following fees are hereby established for plan check and construction i,~spection performed by the City of Tustin Engineering Di¥i sion: DOMESTIC WATER MAiN ..................... S 0.~3 per lineal foot FIRE HYDRANT .............................. 15.©0 each GATE VALVE ................................. 5.00 each DOMESTIC WATER SERVICE .................... 1~.00 each HOT TAP TO EXISTING WATER MAIN ............ 20.~0 each Section I! - The folowing charges are hereby established for water meters fur~is~e~ and installed b3 the City of Tustin Water Service: 5/8" x 3/4" WATER METER ............... S 65.00 i" WATER METER ........................... 125.00 1 1/2" WATER METER ........................ 2~5.00 2" WATER ~]ETER ........................... 3qO.O0 3" WATER I1ETER ........................... 620.00 4" WATER HETER ......................... 1,100.00 Section Iii - T~]e following charges are hereby established for water meters f~rnished by the City of Tustin and installed by the owner or developer: 6" WATER METER ....................... $2,025.00 8" WATER METER .......................... 3,400.00 Sectio~ tV - The following charges are hereby established for furnishin§ of all materials and installation of an individual water service by the City of Tustin Water Service: WATER SERVICE PIPE ................ Actual CORPORATION COCK .................. Actual ANGLE HETER STOP .................. Actual WATER METER ........................ Actual METER BOX ......................... Actual MISC. MATERIALS ................... Actual ASPHALT CONCRETE ................. Actual PORTLAND CEMENT CONCRETE .......... Actual 15% LABOR TO INSTALL SERVICE & RESTORE PAVEMENT AND/OR CONCRETE---Actua Cost Plus 15% Cost Plus 15% Cost Plus 15% Cost Plus 15% Cost Plus 15% Cost Plus 15% Cost Per Ton Plus 15% Cost Per Cubic Yard Plus 1 Cost Plus 15% The total cost of each individual water service shall be calculated by the Engineering Division, based on the herein stated guidelines, at the time the owner or developer obtains his permit. (1) 1 2 4 5 6 8 9 10 11 12 15 14 15 16 18 19 20 21' 22 24 25 26 27 28 29 50 Section V - The following miscellaneous fees, deposits and advances against water usage are hereby established: ADVANCE AGAINST WATER USAGE FOR DEVELOPtqENTS 10 SERVICES OR LESS ..... $40.00 Per Service DELIHQUENT ACCOUNT WATER TURN ON FEE---S15.00 From 8:00 AM to 5:00 PH $20.00 After 5:00 PM or Weekends and Holidays DELINQUENT ACCOUNT DEPOSIT TO RE-ESTABLIS~ CREDIT .............. Twice the Estimated Average Bi-Monthly Billing RENTERS OR LEASEES DEPOSIT ....... Twice the Estimated Average Bi-Monthly Billing or $20.00 Whichever is Greater FIRE HYDRANT METER DEPOSIT ....... $500.00 Per Heter METER VALVE KEY DEPOSIT .......... $10.00 Per Each Where deposits herein include an amount for anticipated water usage the cost of water used shall be deducted from the deposit amount and the difference refunded · to the applicant, [~eiinquent account deposits and renters or leasees deposits shall be retained for a minim~m of one year from the date of payment. Said deposit shall then be refunded to the applicant upon establishmen~ or re-establishment of good credit, Loon discontir~uance of service, the Tustin Water Service will refund the balance c,f the customers deposit, in excess cf unpaid bills For that service for which the deposit was made. Se(tion VI - The followiqg bi-monthly water usage rates and charges are herebv e,=tablished: 0 TO 600 CUBIC FEET .............. $0.263 Per t00 Cubic Feet OVER 600 CUBIC FEET ................ 0.417 Per i00 Cubic Feet PLUS BI-MONTHLY SERVICE CHARGF_ PER METER 5/8" x 3/4" METER ................. $ 5.80 Per I!eter t" ~,IETEP, ............................ 8.70, Per ~leter i I/2" ~!ETER ....................... 1i.70 Per Meter 2" METER ........................... !5.94 Per' Meter 3" METER ........................... 29.50 Per Meter 4" METEF~ ............................ 39.78 Per Meter 6" I!ETER ........................... 66.52 Per Meter BI-MC~ii~LY FIRE LINE & DETECTOR CHECK 4" FIRE SERVICE ................... $28.00 5" FIRE oERVICE .................... 35.00 6" FIRE SERVICE .................... 42,00 8" FIRE SERVICE .................... 56.00 10" FIRE SERVICE .................... 70.00 12" FIRE SERVICE .................... 84.00 VALVE CHARGES Per Service Per Service Per Service Per Service Per Service Per Service (2) ? 10 11 1§ 18 2O 21 22 2~ 2~ 2§ 28 2~ ~0 $2 Section Vii - The following miscellaneous water usage rates and charges are hereby established: CONSTRUCTION WATER FROIq IIETERED FIRE HYDRANTS All ~later Sold .................... $0.35 per 100 Cubic Feet Neter Use Charge .................. $20.00 Per Meter l) Special Conditions The meter use charge is a one time charge per application Der meter. The Tustin Water Service reserves the right to discontinue the service withcut notice if water is not used for a period of 15 consecutive days. COt~STRUCTION WATER FRO~I UN-HETERED FIRE HYDRAHTS All Water Sold ............. $0.10 Per 100 Gallons Minimum Charge ........... 2-$5.00 Per Application Special Conditions Applicable to all measured water furnished for delivery to customers tanks or containers. The minimum charge will entitle the customer to the quantity of water which she minimum charge will purchase at the quantity rate. Water service under this schedule will be furnished only when surplus water is available and under conditions ~ihich will not adversely affect domestic service. The Tustin Water Service wilt be the sole judge as to the availability of such surplus water. The Tustin t~ater Service will determine the locations at which the service will be provided and the conditions governing said service. ~!ATEF~ !JSAG£ RATES FOR UN~iETERED DEVELOPMENTS DURING CONSTRUCTION For Each Commercial or or Each Residential Dwelling Unit of a Oeveleoment .......................... S9.00 for First Two Ilonths of the Constructien Period and $4.50 For Each Additional ~1onth or Portion Thereof Special Conditions Applicable to all commercial or industrial units or dwelling units being constructed as part of a total real estate development. This rate is available only to developers who undertake the construction of all or a substantial portion of the units of a tract or parcel. It does not apply to developers of individual units of a tract or parcel. 3 The water service under this schedule aplies only to use of water for construction of units. It does not apply to water used for landscaping irrigation, model homes, or general tract improvement work. Section VIII - All current charges of the East Orange County Water District for water connection charges adopted April 20, 1978, by Resolution No. 156 are hereby established. It shall be the responsibility of the City of Tustin Water Service to verify that said charges have been paid prior to permitting any connection to the Tustin Water Service facilities. (3) 4 5 ? 8 9 10 11 12 15 14 15 16 18 19 2O 21' 24 25 26 27 28 29 5O 51 PASSED A~D ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the day ef , 1981. MAYOR ATTEST: L~-]~r CL E RK