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Home My WebLink AboutSanitary Presentation Supplement Sanitary Sewer Master Plan, Financial Plan and Rate Structure Presenters Reed Schmidt, BWA Brian Ragland, City of Downey Louis Atwell, City of Downey Innovative Solutions for January 12, 2010 Water and the Environment Statewide General Waste Discharge Requirements (GWDR) •Adopted by State Water Resources Control Board (SWRCB) on May 2, 2006 •Applies to all public sewer systems with > 1 mile of sewers •Requirements Electronic reporting of all Sanitary Sewer Overflows (SSO’s)  Develop/implement Sewer System Management Plan (SSMP)  SSMPs include plans, programs, and procedures for:  •Management •Operation and Maintenance •Condition Assessment and Repair/Replacement •Hydraulic Capacity Our Sewer System •Population Served –114,000 •193 miles of clay pipe, 6”to 21” •Over 4,000 manholes •Blandwood and True lift stations •CSDLAC trunks and treatment Most City Sewers Are Over 50 Years Old Current Performance on SSOs Is In Line with Comparable Agencies, but… (January 2007 –April 2009) Downey One Major Spill Can Trigger Fines and Regulatory Actions •Potential actions from: EPA Region 9 –Enforcement Action, Administrative Order  RWQCB –Audit, Fines, Cease and Desist Order  3Party –Litigation, Penalties, Legal Fees, Consent Decree rd  •Best protection for City is to be in compliance with statewide GWDRs by approving, adopting, and implementing a good SSMP Sanitary Sewer Master Plan Documents - Assessments and Recommendations •Sewer System Management Plan (SSMP) •Sewer Rehabilitation and Replacement Plan •System Evaluation and Capacity Assurance Plan •Lift Station Condition and Replacement Evaluations •Wastewater Facilities Design Guidelines, Policies, and Procedures •Sewer Financial Plan Initial Video Inspection Findings and Recommendations •50,000 feet (5% of system) inspected •Various ages, sizes, and locations •7% of pipes require repair or rehabilitation/replacement •Findings generalized by age of pipe •Minimum of 0.6 miles of rehabilitation and 23 spot repairs/year •Video inspect entire system in 5 years •Video re-inspect at intervals from 5 – 30 yrs based on condition/age •Replace sewer lift stations •Maintenance adjusted per re-inspections Camera, Broken Pipes, Fractures Debris, Grease, Roots, and Vermin O&M Recommendations •Implement system-wide cleaning program (3 yr cycle) •Expand “hot spot”cleaning program from 18 to 19 mi/yr •Expand chemical root control program from spot locations to 4.5 mi/yr •Purchase computer software system for sewer maintenance and management •Purchase trailer-mounted video inspection unit, jetting, and spill-response equipment (pump, piping) •Replace truck-mounted cleaning unit in 5 yrs •Additional management, technical, and safety training •Increase dedicated sewer staff Projected Total O&M and Capital Budgets* $3,000 Annual SSMP Expenditures Annual SSMP Exp (Deferred) $2,500 $2,000 Thousands $1,500 $1,000 $500 $0 FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020 *Future O&M and Capital Expenditures escalated at 3% per yr Funding the Master Plan/SSMP Current sewer revenue (approximately $300,000/yr) insufficient  Sewer rate increase last occurred in 1997 (twice in last 25 yrs)  Rates have not kept pace with expanding regulation, inflation, and  aging infrastructure repair/replacement costs Creation of self-sustaining Sewer Fund would eliminate current  transfers from General and Water Funds thereby freeing these monies for other services New rate structure would be tailored to pay for:  Ongoing O&M Costs  Funding of Reserves  Capital Improvements  Unscheduled Expenses (Emergency Repairs)  Rate increase must follow Proposition 218 process  Sewer Rate Study Proposed Rate Increases RECOMMENDATIONS:  Implement new Sewer Rate Structure with both fixed and variable  charges to collect approximately $1.6 million in annual revenue Generate approximately 60% of revenues from fixed charges and  40% from variable charges Sewer fixed charge based on water meter size, number of dwelling  units, or fixed according to customer class Sewer variable charge based on metered water usage.  Rate increases will generate enough income to meet the Master  Plan/SSMP requirements EXISTING/PROPOSED RATES -COST SHARE VS. SEWER FLOW CONTRIBUTIONS Cost Share –Cost Share –Sewer Flow Customer Class Existing RatesProposed RatesContribution Single-Family Residential82%69%70% Multi-Family Residential8%18%15% Commercial9%10%12% Proposed Sewer Rate Structure FIXED BI-MONTHLY SANITARY SEWER CHARGE Customer ClassMeter SizeChargeVARIABLE SANITARY SEWER CHARGE BasisCharge Single Family Residential---$5.48 $3.28 (per unit) Per water consumption unit (CU) (100 cu-ft)$0.10 Multi-Family Residential--- Non-Residential5/8"$5.48 GENERAL 3/4"$6.88 CategoryPolicy 1"$8.38 1-1/2"$12.94 Customers deemed by the City to qualify 2"$20.02 under more than one type of customer class Customer Class 3"$30.04 will be charged the higher of the associated rates 4"$42.16 6"$60.10 8"$80.10 10"$100.12 Compound meters billed according to the larger side of the meter Comparison of Sewer Bills for Single Family Residential Customers (5/8-in Water Meter; 35 HCF Bi-monthly Water Consumption) $35.00 $30.00$28.71 $25.00$23.69 Bi-Monthly Bill ($) $20.00 $15.58 $15.00 *$11.90 $11.62 $8.98 $10.00 * $5.25 $5.00 $1.90 $0.58 $0.00 City ofCity ofCity ofCity ofCity ofCity of SouthCity ofCity of LongCity of CerritosDowneyHuntingtonDowneyWhittierGateLynwoodBeachCompton (Existing)Park(Proposed) Agency * Currently planning rate increase for FY Comparison of Sewer Bills for Multi-Family Residential Customers (3/4-in Water Meter; 4 Units; 130 HCF Bi-monthly Water Consumption) $90.00 $82.19 $80.00 $70.00 $60.00 Bi-Monthly Bill ($) $52.47 $50.00 $44.20 * $43.16 $40.00 $30.00 $26.12 * $19.50 $20.00 $15.58 $10.00 $2.15 $1.90 $0.00 City ofCity ofCity ofCity ofCity ofCity ofCity of SouthCity of LongCity of DowneyCerritosLynwoodHuntingtonDowneyWhittierGateBeachCompton (Existing)Park(Proposed) Agency * Currently planning rate increase for FY Comparison of Sewer Bills for Commercial Customers (1-1/2-in Water Meter; 150 HCF Bi-monthly Water Consumption) $100.00 $93.45 $90.00 $83.25 $77.88 $80.00 * $70.00 $65.85 Bi-Monthly Bill ($) $60.00 $51.00 $50.00 $40.00 $27.94 $30.00 * $22.50 $20.00 $10.00 $3.65 $2.48 $0.00 City ofCity ofCity ofCity ofCity of SouthCity ofCity ofCity of LongCity of CerritosDowneyHuntingtonDowneyGateWhittierLynwoodBeachCompton (Existing)Park(Proposed) Agency * Currently planning rate increase for FY Sample Commercial Sewer Bills Comparison with Neighboring Agencies •Grocery Stores Store #1 Large User –1,200 hcf water usage, 2-inch meter  Store #2 Medium User –780 hcf water usage, 2-inch meter  Store #3 Small User –277 hcf water usage, 2-inch meter  •Restaurants Restaurant #1 Large User –560 hcf water usage, 2-inch meter  Restaurant #2 Medium User –275 hcf water usage, 2-inch meter  Restaurant #3 Small User –66 hcf water usage, 5/8-inch meter  Comparison of Sewer Bills –Grocery Stores Store #1 Bi-monthly water use 1,200 hcf; Meter size 2-inch AgencyBi-Monthly Bill City of Downey (Current)$5.15 City of Lynwood$77.88 City of Downey (Proposed)$140.02 City of Huntington Park$180.00 City of South Gate $408.00 City of Long Beach$418.44 City of Whittier $526.80 City of Compton$684.93 Comparison of Sewer Bills –Grocery Stores Store #2 Bi-monthly water use 780 hcf; Meter size 2-inch AgencyBi-Monthly Bill City of Downey (Current)$5.15 City of Lynwood$77.88 City of Downey (Proposed)$98.02 City of Huntington Park$117.00 City of South Gate $265.20 City of Long Beach$291.18 City of Whittier $342.42 City of Compton$448.47 Comparison of Sewer Bills –Grocery Stores Store #3 Bi-monthly water use 277 hcf; Meter size 2-inch AgencyBi-Monthly Bill City of Downey (Current)$5.15 City of Huntington Park$41.55 City of Downey (Proposed)$47.72 City of Lynwood$77.88 City of South Gate $94.18 City of Whittier $121.60 City of Long Beach$138.77 City of Compton$165.28 Comparison of Sewer Bills –Restaurants Restaurant #1 Bi-monthly water use 560 hcf; Meter size 2-inch Agency Bi-Monthly Bill City of Downey (Current)$5.15 City of Downey (Proposed)$76.02 City of Lynwood$77.88 City of Huntington Park$84.00 City of South Gate $190.40 City of Long Beach$224.52 City of Whittier $245.84 City of Compton$324.61 Comparison of Sewer Bills –Restaurants Restaurant #2 Bi-monthly water use 275 hcf; Meter size 2-inch Agency Bi-Monthly Bill City of Downey (Current)$5.15 $41.25 City of Huntington Park City of Downey (Proposed) $47.52 City of Lynwood$77.88 City of South Gate $93.50 City of Whittier $120.73 City of Long Beach$138.17 City of Compton$164.16 Comparison of Sewer Bills –Restaurants Restaurant #3 Bi-monthly water use 66 hcf; meter size 5/8-inch Agency Bi-Monthly Bill City of Downey (Current)$1.90 $9.90 City of Huntington Park City of Downey (Proposed) $12.08 City of South Gate $22.44 City of Whittier $28.97 City of Long Beach$33.08 City of Compton$46.49 City of Lynwood$77.88 Proposition 218 •BACKGROUND Proposition 218 is the "Right to Vote on Taxes Act" passed in November 1996  City cannot increase sewer rates without first notifying property owners and  ratepayers about the proposed increase Property owners and ratepayers can file a written protest against the proposed  rate increase Proposition 218 requires that a public hearing be conducted prior to adopting or  increasing any “property related”fees, including sanitary sewer If a majority of notified property owners and ratepayers file a written protest, the  rates may not be increased •INTENT Protect property owners  Limit ability to increase fees and charges and enact assessments  Fee or charge shall not the exceed proportionate cost of service  Revenues derived from the fee or charge shall not exceed the funds required to  provide the property-related service Revenues shall not be used for any other purpose other than thatfor which the  fee or charge was imposed . Proposition 218 -Procedure •Mail property owner/ratepayer notice of proposed rate increase containing the following: Amount of proposed increase  Why increase is being proposed and how increase was calculated  Date, time, and place of public hearing  Instructions to owners/ratepayers on how to submit a written protest  •Conduct a public hearing on the sewer rate increase no sooner than 45 days after Prop. 218 notices are mailed •The proposed rate increases cannot be imposed if a majority of property owners/ratepayers submit written protests (only one protest per parcel is counted) Master Plan/SSMP and Rate Increase Approval Timeline January 12, 2010 Council to Adopt Resolution approving and adopting the Master Plan/SSMP  Council to Adopt Resolution Initiating the Prop 218 process and setting public  hearing date February 6, 2010 (on or before) Mail property owners/ratepayers notice of rate increase  March 23, 2010 Hold a public hearing regarding proposed sewer rate increase  Proposed increase cannot be imposed if a majority of property owners submit a  written protest (before or prior to end of the public hearing) QUESTIONS??