PROPERTY OWNERS MEETING SEWER SERVICE CHARGE RATES

Transcription

1 PROPERTY OWNERS MEETING SEWER SERVICE CHARGE RATES Devonshire County Sanitation District Harbor Industrial Sewer Maintenance District Scenic Heights County Sanitation District Clifford Elementary School 225 Clifford Avenue Redwood City, CA May 22, :00 P.M. County of San Mateo Department of Public Works

2 OVERVIEW OF TONIGHT S MEETING: District Information District Funding Elements of the Sewer Service Charge Rates In District Costs Out of District Costs Minimum Fund Reserve Targets Proposed Rates Rate Setting Timeline Questions and Comments

3 HISMD: Pipes ~ 1 Mile ERU BHSMD: Pipes ~ 7 Miles ERU CSCSD: Pipes ~ 19 Miles ERU 1,501 DCSD: Pipes ~ 4 Miles ERU ESMD: Pipes ~ 0.3 Miles ERU - 18 ELHSMD: Pipes ~ 29 Miles ERU 1,657 SHCSD: Pipes ~ 2 Miles ERU - 58 OKSMD: Pipes ~ 2 Miles ERU KSSMD: Pipes ~ 0.8 Miles ERU - 74 FOSMD: Pipes ~ 81 Miles ERU 12,597

4 DEVONSHIRE COUNTY SANITATION DISTRICT BOUNDARY MAP: Sewage Flows Through City of San Carlos to the South Bayside System Authority (SBSA) Treatment Plant in Redwood Shores For Treatment District Boundary San Mateo Foster City Redwood Shores Belmont San Carlos

5 HARBOR INDUSTRIAL SMD BOUNDARY MAP: Sewage Flows Through City of San Carlos to the South Bayside System Authority (SBSA) Treatment Plant in Redwood Shores For Treatment District Boundary Foster City Redwood Shores Belmont San Carlos Redwood City

6 SCENIC HEIGHTS COUNTY SANITATION DISTRICT BOUNDARY MAP: Sewage Flows Through City of San Carlos to the South Bayside System Authority (SBSA) Treatment Plant in Redwood Shores For Treatment District Boundary Redwood Shores San Carlos Redwood City

7 SEWER/SANITATION DISTRICTS IN COUNTY GOVERNMENT: EACH DISTRICT IS AN INDEPENDENT ENTITY WITH ITS OWN SEPARATE BUDGET Each District s Governing Board is the Board of Supervisors The District receives Sewer Service Charges and limited property taxes within the District boundaries to fund sewer service The Sewer Service Charges are a Fee For Service, Not a Tax The District collects Sewer Service Charges on the Tax Bill because it is least costly way to collect the fee

8 WHERE DOES MY PROPERTY TAX MONEY GO? DCSD Sample Property Tax Allocation (TRA ) County Harbor District 0.43% Air Quality Mangmnt 0.25% DCSD 2.44% Mosquito Abatement 0.23% Sequoia Hospital Dist 1.78% County Education Tax 4.29% San Mateo Jr. College 8.24% General County Tax 28.80% SU High School 18.98% Free Library 4.20% San Carlos Elem School 22.56% County Fire 7.81%

9 WHERE DOES MY PROPERTY TAX MONEY GO? HISMD Sample Property Tax Allocation (TRA ) Air Quality Mngmnt 0.22% Mid Pen ROSD 1.89% Belmont County Water 0.57% Harbor Ind SMD 0.96% Belmont Fire Zone % County Harbor District 0.36% Belmont Fire Dist 17.10% Mosquito Abatement 0.20% Sequoia Hospital Dist 1.51% County Education Tax 3.63% General County Tax 24.41% Free Library 3.56% SM Junior College 6.98% SU High School 16.08% Belmont Elem School 21.20%

10 WHERE DOES MY PROPERTY TAX MONEY GO? SHCSD Sample Property Tax Allocation (TRA ) Mosquito Abatement 0.22% County Harbor District 0.40% Air Quality Mngmnt 0.24% Sequoia Hospital Dist 1.67% County Education Tax 4.02% Mid Penn ROSD 2.09% Scenic Heights CSD 0.79% SM Jr College 7.72% General County Tax 26.97% SU High School 17.77% Free Library 3.93% RWC Elem School 26.89% County Fire Protection 7.31%

11 DISTRICT SPECIFIC STATISTICS: District Age (Years) * Number of Connections ** Equivalent Residential Units Downstream Transport Agency Treatment Facility Devonshire CSD Harbor Industrial SMD Scenic Heights CSD *Age based on District formation date ** Based on SSC Report District Miles of Pipe City of San Carlos Percentage of Pipe in Easements South Bayside System Authority (SBSA) Percentage of Pipe in Streets Devonshire CSD % 61.52% Harbor Industrial SMD % 84.20% Scenic Heights CSD % 86.70%

12 ORGANIZATIONAL STRUCTURE OF DISTRICTS: SAN MATEO COUNTY BOARD OF SUPERVISORS COUNTY MANAGER'S OFFICE DEPARTMENT OF PUBLIC WORKS James C. Porter, Director UTILITIES-FLOOD CONTROL-WATERSHED PROTECTION SECTION Ann M. Stillman, Principal Civil Engineer BURLINGAME HILLS SMD DEVONSHIRE CSD EMERALD LAKE HEIGHTS SMD HARBOR INDUSTRIAL SMD OAK KNOLL SMD CRYSTAL SPRINGS CSD EDGEWOOD SMD FAIR OAKS SMD KENSINGTON SQUARE SMD SCENIC HEIGHTS CSD

13 HOW DOES A SEWER SYSTEM WORK? Each District Relies On Downstream Agencies To Transport The District Collected Sewage To The Treatment Plant Image Source: Pixel-Gym

14 DISTRICT EXPENSES: IN DISTRICT COSTS: Operation and Maintenance Regulation Compliance District Capital Improvement Projects OUT OF DISTRICT COSTS: Sewage Transport and Treatment Downstream Agency Capital Improvement Projects

15 DISTRICT EXPENSES: Devonshire County Sanitation District FY Proposed Balanced Budget Rate of $780 Per ERU Regulations 5.4% Other Revenue (Tax Revenue & Interest) 12.0% Fund Reserve * 0.2% In District O&M 18.0% District CIP 30.7% Treatment 33.7% * Utilizes Fund Reserve

16 DISTRICT EXPENSES: Harbor Industrial Sewer Maintenance District FY Proposed Balanced Budget Rate of $280 Per ERU Fund Reserve * 6.3% O&M 17.1% Other Revenue (Tax Revenue & Interest) 29.3% In District Treatment 29.8% Regulations 9.5% District CIP 7.9% * Contributes to Fund Reserve

17 DISTRICT EXPENSES: Scenic Heights County Sanitation District FY Proposed Balanced Budget Rate of $700 Per ERU Fund Reserve * 18% O&M 12% Other Revenue (Tax Revenue & Interest) 5% In District Regulations 7% District CIP 14% Treatment 44% * Contributes to Fund Reserve

18 DISTRICT EXPENDITURE COMPARISON Fiscal Year and Expenditure Comparison Expenditure ($) $270,000 $240,000 $210,000 $180,000 $150,000 $120,000 $90,000 $60,000 $30,000 Regulations District CIP O&M Treatment $- Devonshire Devonshire Harbor Industrial Harbor Industrial Scenic Heights Scenic Heights District / Fiscal Year

19 OPERATION AND MAINTENANCE: ROUTINE AND PREVENTATIVE MAINTENANCE REPAIR OF DAMAGED PIPES EMERGENCY RESPONSE CUSTOMER ASISTANCE DISTRICT ADMINISTRATION

20 OPERATION AND MAINTENANCE: EMERGENCY RESPONSE 24 HOURS A DAY, 7 DAYS A WEEK Image Source: City of Irving, Texas

21 OPERATION AND MAINTENANCE: ANTICIPATED EXPENDITURES FOR FUTURE OPERATION & MAINTENANCE BASED ON 5-YEAR HISTORICAL COSTS 4% annual increase for inflation 3% O&M contingency to account for unanticipated expenses

22 REGULATION COMPLIANCE: THE DISTRICTS ARE REGULATED BY: The Regional Water Quality Control Board The State Water Resources Control Board The State Porter-Cologne Act The Federal Clean Water Act

23 REGULATION COMPLIANCE: GOAL TO ELIMINATE SANITARY SEWER OVERFLOWS (SSO) What is a SSO? Raw Sewage Leaves the Pipe and Flows on the Ground Surface Sewage, if Not Captured, Can Reach Storm Drains, Creeks, Lakes, the Bay, and Ocean SSO from Manhole SSO from Manhole Near Creek SSO from Cleanout

24 REGULATION COMPLIANCE: WHAT CAUSES A SSO? Blockages, breaks, and Infiltration & Inflow in the sewer pipe will cause a SSO.

25 REGULATION COMPLIANCE: WHY IS IT IMPORTANT TO ELIMINATE SSOs? UNTREATED SEWAGE IS A THREAT TO PUBLIC HEALTH, ANIMALS, AND THE ENVIRONMENT.

26 REGULATION COMPLIANCE: WHY IS IT IMPORTANT TO ELIMINATE SSOs? AGENCIES HAVE BEEN LEVIED STIFF PENALTIES OR PAID LARGE SETTLEMENTS IN LAWSUITS FOR SSOs. Notice of Violation & Intent to File Suit (60-Day Notice) Plaintiffs Baykeeper, West County Toxic Coalition Lawyers for Clean Water Environmental Advocates vs. Defendants West County Wastewater District (WCWD) City of Richmond Veolia Water NA Downey Brand LLP Collection System Settlement Agreement o o o WCWD Collection System Capital Improvement Program o Commit $5M over 10 years System Evaluation and Capacity Assurance Plan (SECAP) o Revise within 18 months o Update 2015 o CCTV-Sewer Condition Grading o Gravity Sewer Line Cleaning Schedule o <12 once every 4 years o >12 once every 10 years o Design for 5 year-24/hr Storm Event o Continue FOG Program - Increase FSE Inspections Attain SSO Reduction Goals Fines!!! Settlement Agreement Fees WCWD/Richmond/Veolia owca NPDES Effluent Limit Violations The San Francisco Bay Regional Water Quality Control Board imposed a $516,000 fine to the City of South San Francisco in 2006 for sewer overflows and a $626,000 administrative civil liability to the City and County of San Francisco in an impending order. osep Rose Foundation $80,000 oattorneys Fees (Plaintiff) $57,000 ocollection System Settlement Fees oattorneys Fees (Plaintiff) - $538,000 ooversight Cost (Plaintiff) - $100,000 oattorneys Fees (Defendants) - $300,000 ostaff Resources/In-house Counsel - $50,000 osettlement Agreement was reached in 15 months

27 REGULATION COMPLIANCE: What are the Districts required to do? Develop Sewer System Management Plans (SSMP) Report all SSOs

28 REGULATION COMPLIANCE: Sewer System Management Plan (SSMP) Goals: Maintaining or improving the condition of collection systems to provide reliable service in the future Cost-effectively minimizing infiltration/inflow (I&I) and providing adequate sewer capacity for wet weather flows Minimizing the number and impact of SSOs

29 REGULATION COMPLIANCE: What are the elements of a SSMP and when do they need to be completed by? Aug Aug Aug Collection system management goals Organization of personnel, chain of command, and communications Overflow emergency response plan Fat, Oils and Grease (FOG) control program Legal authority for permitting flows into the system, I&I control and enforcement of proper design, installation, testing standards and inspection requirements for new and rehabilitated sewers Measures and activities to maintain the wastewater collection system Design and construction standards Capacity Management Monitoring plan for SSMP program effectiveness Periodic SSMP Audits, periodic SSMP updates, and implementation of program Communication Program

30 REGULATION COMPLIANCE: What SSMP Elements were factored into the rates? Condition Assessment through Closed Circuit Television Inspection (CCTV) of pipes 1/6 of system per year Spot Repairs Repairing sections of pipe based on CCTV findings Repair 2% of televised pipe system per year Equipment Upgrades Replacing, upgrading, or purchasing equipment for effective maintenance of sewer system Regulatory Reporting and Requirements Costs associated with required reporting and SSMP development

31 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): High priority CIPs identified in Sewer Master Plans completed in 1999 and 2000 Improvements recommended based on Lack of capacity in pipe Priority 1 Excessive maintenance costs Priority 2 Damaged pipes Priority 3

32 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): What is recommended in my District? Devonshire CSD CIP Identified in Sewer Master Plan Priority No. of Projects Identified Length of Pipe to be Upgraded Estimated Construction Cost Priority 1 Capacity Priority 2 Maintenance Priority 3 Structural ~ 2,410 $397,342 3 ~ 2,850 $469,371 Totals 5 5,260 ft. * $866,713 ** * CIP Lengths Identified Represent Approximately 22.3% of District s Total Length of Sewer Mains (23,534 feet). ** Estimated cost includes design, administration, and inspection

33 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): What projects still need to be completed? Remaining Devonshire CSD CIP Priority Number of Projects Length of Pipe to be Upgraded Estimated Construction Cost Priority 1 Capacity Priority 2 Maintenance 2 ~ 2,410 $397,342 Priority 3 Structural 3 ~ 2,850 $469,371 Totals 5 5,260 ft. * $866,713 ** * Remaining CIP Lengths Represent Approximately 22.3% of District s Total Length of Sewer Mains (23,534 feet). ** Estimated cost includes design, administration, and inspection

34 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): What is recommended in my District? Harbor Industrial SMD CIP Identified in Sewer Master Plan Priority Priority 1 Capacity Priority 2 Maintenance Priority 3 Structural No. of Projects Identified Length of Pipe to be Upgraded Estimated Construction Cost ~ 620 $101,535 Totals ft. * $101,535 ** * CIP Lengths Identified Represent Approximately 9.2% of District s Total Length of Sewer Mains (6,766 feet). ** Estimated cost includes design, administration, and inspection

35 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): What projects still need to be completed? Remaining Harbor Industrial SMD CIP Priority Number of Projects Length of Pipe to be Upgraded Estimated Construction Cost Priority 1 Capacity Priority 2 Maintenance Priority 3 Structural 1 ~ 620 $101,535 Totals ft. * $101,535 ** * Remaining CIP Lengths Represent Approximately 9.2% of District s Total Length of Sewer Mains (6,766 feet). ** Estimated cost includes design, administration, and inspection

36 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): What is recommended in my District? Scenic Heights CSD CIP Identified in Sewer Master Plan Priority No. of Projects Identified Length of Pipe to be Upgraded Estimated Construction Cost Priority 1 Capacity Priority 2 Maintenance Priority 3 Structural ~ 400 $61,764 Totals ft. * $61,764 ** * CIP Lengths Identified Represent Approximately 3% of District s Total Length of Sewer Mains (13,155 feet). ** Estimated cost includes design, administration, and inspection

37 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): What projects still need to be completed? Remaining Scenic Heights CSD CIP Priority Number of Projects Length of Pipe to be Upgraded Estimated Construction Cost Priority 1 Capacity Priority 2 Maintenance Priority 3 Structural 1 ~ 400 $61,764 Totals ft. * $61,764 ** * Remaining CIP Lengths Represent Approximately 3% of District s Total Length of Sewer Mains (13,155 feet). ** Estimated cost includes design, administration, and inspection

38 DISTRICT CAPITAL IMPROVEMENT PROJECTS (CIP): How were the CIP costs factored into the rates? Costs for CIPs were spread over 10 years 5% contingency applied for capital work Districts pipes are greater than 50 years old

39 OUT OF DISTRICT COSTS: Sewage Transport Treatment and Disposal Downstream Agency Capital Improvement Projects

40 SEWAGE TRANSPORT, TREATMENT, AND DISPOSAL: Each District has an Agreement with the downstream agency for sewage transport, treatment, and disposal DCSD, HISMD, and SHCSD have agreements with the City of San Carlos

41 SEWAGE TRANSPORT, TREATMENT, AND DISPOSAL: What do the Agreements specify? The District will pay the City of San Carlos: for transporting, treating, and disposing of sewage from the Districts an amount equivalent to 85% the Sewer Service Charge rate established by the City for the same type of structure in the City based on quantity and quality of flow for Harbor Industrial SMD

42 SEWAGE TRANSPORT, TREATMENT, AND DISPOSAL: Payments to the City include reimbursing the City for the use of their sewer system, operation and maintenance costs associated with the usage, and capital improvement projects on the City s system The City s SSC is $359 The City is raising their rates by 64% over 3 yrs The City increased their rates by 30% this year ( ) The City s rates will increase by 22% in the fiscal year and 12% in the fiscal year

43 SEWAGE TRANSPORT, TREATMENT, AND DISPOSAL: What affects the rates the District pays the City? Capital Improvement Projects within the City Capital Improvement Projects at the South Bayside System Authority (SBSA) SBSA is planning capital improvements worth multimillion dollars The capital improvements will replace equipment which have reached the end of their useful lives SBSA will be charging the member agencies (Redwood City, San Carlos, Belmont, and West Bay Sanitary District) for the improvements

44 SERVICES PROVIDED BY DISTRICTS: SEWAGE TREATMENT AND DISPOSAL PROCESS Image Source: SBSA

45 SEWAGE TRANSPORT, TREATMENT, AND DISPOSAL: A portion of the SSC rates were calculated to pay for transport, treatment, and disposal and anticipated increases in treatment costs and capital improvements Based on information from downstream agencies or projected increases based on historical data 3% contingency applied

46 MINIMUM FUND RESERVE TARGETS: 50% of Operations and Maintenance Costs (6 mo.) and 3% of the replacement value (Best Management Practices) or $100,000 for small districts District Replacement Value* Minimum Fund Reserve Target Devonshire CSD $2,350,130 $135,000 Harbor SMD $1,309,120 $100,000 Scenic Heights SMD $1,468,830 $100,000 *Replacement value includes construction costs only

47 PROPOSED RATES: Balanced Budget SSC Rates determined to meet anticipated expenditures immediately Phased Increase SSC Rates determined to steadily increase to meet future expenditures Phased Increase may rely on Fund Reserve to meet future expenditures

48 PROPOSED RATES: Sewer Service Charge Rate ($/Year Per Residential Unit) District Name Option Proposed Rates Balanced Budget $780 $850 $900 $950 $1,000 DCSD Phased Increase $474 $600 $700 $800 $900 $1,000 HISMD Balanced Budget $268 $280 $290 $300 $310 $320 Balanced Budget $700 $800 $900 $1,000 $1,050 SHCSD Phased Increase $387 $500 $650 $800 $950 $1,050

49 SSC vs FUND RESERVE: Devonshire County Sanitation District Sewer Service Charge Options and Beginning FY Fund Reserve Fund Reserve ($) $350,000 $1,100 $313,484 $300,000 Fund Reserve (Balanced) $1,000 $250,000 Balanced SSC $900 Fund Reserved (Phased) $800 $200,000 $700 $150,000 Min Target Fund Reserve $159,925 $600 $100,000 $500 Phased SSC $50,000 $ Fiscal Year Sewer Service Charge Rate ($)

50 SSC vs FUND RESERVE: Harbor Industrial Sewer Maintenance District Sewer Service Charge Options and Beginning FY Fund Reserve $750,000 $600 Fund Reserve ($) $650,000 $550,000 $450,000 $350,000 $250,000 $150,000 Fund Reserve SSC $660,512 Min Target Fund Reserve $500 $400 $300 Sewer Service Charge Rate ($) $50,000 $ Fiscal Year

51 SSC vs FUND RESERVE: Scenic Heights County Sanitation District Sewer Service Charge Options and Beginning FY Fund Reserve Fund Reserve ($) $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 Min Target Fund Reserve Balanced SSC Phased SSC $96,202 $64,499 Fund Reserve (Balanced) Fiscal Year Fund Reserved (Phased) $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 Sewer Service Charge Rate ($)

52 RATE SETTING PROCESS: Key Dates May 2, 2007 Early/Mid May May 15 Mid/End of May June 5 June 8 July 24 Actions Sent all property owners information about sewer systems and what their sewer service charge pays for. Sent all property owners information about proposed rates and timing of meetings with property owners. District staff provided Board with status update on proposed sewer service charge rates and received approval of proposed process and elements of the rates. Meetings with property owners of each district to discuss the proposed rates, factors involved in establishing rates, and seek property owner input. Introduce Ordinance with proposed sewer service rates for through fiscal years and set Public Hearing for July 24 at 9:15am. Send Prop 218 notice (45 days prior to public hearing) to property owners with proposed rates. Hold public hearing, adopt Ordinance setting rates, and adopt Sewer Service Charges Report based on the adopted rates.

53 QUESTIONS & INPUT District Services Rate Development Rate Adoption Process and Schedule Others

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