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HomeMy WebLinkAboutAgenda Packet City Council - 07/19/2023 ,5r.,f,,r Cit of Corpus Christi 1201 Leopard Street Y F' Corpus Christi,TX 78401 x x cctexas.com \ Meeting Agenda - Final City Council Wednesday,July 19, 2023 2:30 PM Council Chambers City Council Workshop for Water, Wastewater, and Storm Water Rate Structures Public Notice: ITEMS ON THIS AGENDA ARE FOR COUNCIL'S INFORMATIONAL PURPOSES ONLY. NO ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE SOLICITED. A. Mayor Paulette Guajardo to call the meeting to order. B. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. C. BRIEFINGS: 1. 23-1216 Water, Wastewater, And Storm Water Rate Structures Sponsors: Corpus Christi Water and Public Works/Street Department D Adjournment City of Corpus Christi Page 1 Printed on 7/24/2023 so �o o� A v µoRPORP�g4 AGENDA MEMORANDUM 1852 City Council Meeting of July 19, 2023 DATE: July 12, 2023 TO: Peter Zanoni, City Manager FROM: Michael Murphy, Chief Operations Officer for Corpus Christi Water michaelmur(a)-cctexas.com (361) 826-3556 Nieman Young, Assistant City Manager Presentation on Water, Wastewater, and Storm Water Rate Structures STAFF PRESENTER(S): Name Title/Position Department 1. Reba George Assistant Director Corpus Christi Water 2. Gabriel Hinojosa Assistant Director Public Works 3. Ernesto De La Garza Director Public Works ISSUE: Briefing to provide City Council and the public with an overview of the Water, Wastewater, and Storm Water Rate Structures. BACKGROUND: Department staff will provide an overview of water, wastewater and storm water rate structures. There is no Council action for this item, it is for information only. Water and Wastewater CCW must collect adequate revenues to support 100% of the cost of operations, maintenance, equipment, and investment in capital improvement projects. Rates and fees generate revenue from each customer class based on a certain level of service to each customer class. Rate structures provide the basis for water and wastewater charges for each customer class. The Water System consists of four water supply sources, one water treatment plant, seven elevated storage tanks, 2,800 miles of water line, three pump stations, and 100,000 water connections. The Wastewater System consists of six wastewater treatment plants, 106 lift stations, 60 miles of force main, and 1,300 miles of gravity line. Stormwater The Storm Water fee was established as a standalone utility fee in January 2022. Prior to the adoption of the standalone fee, storm water services were part of the water utility fees. Staff believed this configuration to lack transparency. In an effort to make the fee more transparent, and equitably distributed, the Public Works Department created the Storm Water fee structure that bases the fee on the amount of impervious surface on a commercial or residential lot. The Storm Water Fee funds the maintenance of 600 miles of channels, 700 miles of storm pipes, and programs such as street sweeping, water quality management, and flood control. LIST OF SUPPORTING DOCUMENTS: Presentation DRAFT Overview of Water and Wastewater Rate Structures City Council Workshop July 19, 2023 Corpus CA10M Christi Water Serving the Coastal Bend CCW must collect adequate revenues to support 100% of the cost of operations, maintenance, equipment, and investment in capital improvement projects. Rates and fees generate revenue from each customer class based on a certain level of service to each customer class. Rate structures provide the basis for water and wastewater charges for each customer class. A nationally recognized consultant firm assists with water and wastewater rate study and financial analysis. CCW Water Rate Structure CCW'" Water System 4 water supply sources Corpus �p 1 water treatment plant christiwater' 7 elevated storage tanks O"n9 the COaO 2,800 miles of water line 3 pump stations 100,000 water connections M Ips: de. Water Customers - Classes • Residential Inside (ICL) or Outside City Limits (OCL) • Commercial ICL or OCL • Large Volume ICL or OCL • OCL Network - Nueces County Water Control & Improvement Dist#4 (Port Aransas) - Violet Water Supply • OCL Wholesale - San Patricio Municipal Water District - South Texas Water Authority • Raw water-contract San Patricio Municipal Water District, Flint Hills, Celanese; Beeville, Mathis, Alice CON'" Water Customers OCL Wholesale,2 OCL Network,2 Raw water- Commercial OCL, contract,6 Large Volume ICL, 146 5 Number of Commercial ICL, Large Volume 8,751 OCL,14 Accounts Residential OCL, 498 Customer Class #Accts Residential ICL, Residential ICL 88,187 88,187 Residential OCL 498 Commercial ICL 8,751 Commercial OCL 146 Large Volume ICL 5 Large Volume OCL 14 OCL Network 2 OCL Wholesale 2 Raw water-contract 6 97,611 CC1Nsm Water Customers ICL Residential Raw water-contract 16% 32% Billed OCL Residential 0% Usage (MG) ICL Commercial Customer Type MG % 13% Residential ICL 6,064 16% Residential OCL 61 0% OCL Commercial Commercial ICL 5,021 13% 2% Commercial OCL 763 2% Large Volume ICL 515 1% Large Volume OCL 9,046 23% OCL Wholesale ICL Large Volume OCL Network 798 2% 11% 1/ OCL Wholesale 4,187 11% OCL Network OCL Large Volume Raw water-contract 12,610 32% 2% 23% 39,065 CCWsm Water Charges - Breakdown • Raw water charge per 1,000 gallons Includes $0.05 per 1,000 Water Supply Development Fee Meter Size 5/8" X 3/4" • Minimum charge 1" - Based on meter size 1- 1/2" - Includes first 2,000 gallons 2" 3" • Volume charge per 1,000 gallons 4" 6" • Large Volume charge includes the first 10 8„ or larger million gallons CCWsm Water Charges Raw Water Charges Minimum Treated Volume Large Volume Customer Class per 1,000 gals (meter) charge charge per als 1,000 minimum charge Residential X X X Commercial X X X Large Volume X X X X OCL Network X X X OCL Wholesale X X X Raw water-contract X X OCN'" Water Rates — Cost Basis Customer Class Raw Water Diversion Pumping) TTransmission reatment (Network) Distribution Residential ICL X X X X X Residential OCL X X X X X Commercial ICL X X X X X Commercial OCL X X X X X Large Volume ICL X X X X Large Volume OCL X X X X OCL Network X X X X OCL Wholesale X X X Raw water-Contract customers X OCN'" Wastewater Rate Structure CCW'" Wastewater System 6 wastewater treatment plants 106 lift stations 60 miles of force main 1,300 miles of gravity line CCW=. Wastewater Customers Commercial ICL, 8,069 Commercial OCL, 26 Number of Multi-family ICL, Accounts 820 Residential OCL, 20 Customer Class #Accts Residential ICL, 84,843 Residential ICL 84,843 Residential OCL 20 Multi-family ICL 820 Commercial ICL 8,069 Commercial OCL 26 93,778 Date: FY22 Monthly Average CCWsm Wastewater Rates - Structure Wastewater charges include • Minimum charge g Customer Class Minimum Volume - Includes first 2,000 gallons charge charge • Volume charge per 1,000 gallons Residential X X - Residential customer is based Multi-family X X on winter quarter average Commercial X X - Commercial and multi-family customer based on monthly usage OCN'" Calculating a Winter Quarter Average e—te red Billedsage Usage (Gals) (TGAL) December 3,100 3 January 6,200 6 February 7,600 7 STEP 1 Total Billed Consumption 16 TGAL X 1000 STEP 2 Convert to gallons 16,000 gals 92 STEP 3 Divide by # days in billing cycles 173.91 gals X 30 This is the 'Winter STEP Mulitply by 30 for monthly average 5,217.39 gals 4- Quarter Average' (gallons) Calculating a Winter Quarter Average STEP 5 Winter Quarter Average 5,217.39 gals Apply Minimum charge - 2,000 gals 3,217.39 gals Divide by 1000 0 1,000 O Apply Volume charge per 1000 gals 3.22 TGAL CCWsm Thank you ! Corpus CO MS risti WaterSMving the Coastal Bend CITY OF Corpus Chrmistmi Stormwater Utility Fee City Council Presentation July 14, 2023 G0�QusCHs r _ J ti +r T852 r£e t.v.a. T,9 Ym\YkAf' � �� "O�.r.�SAe\\������������llllll\m.°! R1111YS�X( ■�� �._....,�.. 11 _..._ moi. � -:_.. .�_ 1 N y. � +I —��. ` _ ., .r _ �� i s -. _. a _ .. .- .rc !. ,�„ .. y '- .� W.m ,.�r., _._ T _�t � ,... t P . '.w ..r, "... `.sarµ� i t � J � � � «X I I�II� I' i l t u ,l -�, �.��_ � __ �iR .IrM�. � . .�. ..., �.r1 .��":. "� ,...�... �r„ o, y., �w� � - ... ,3.4, :- a � � �,+r,at4 "" .,�� ,, .. F �� �� ,.v. . �:'. �`�a.� � �, di� a .� _�. �S. �' - ...,.; ,. � Statewide Storm Water Implementation Stand-Alone Last a sta d major Xestablish Dallas 1991 stand-alone water fee San Antonio 1993 Austin 2003 CA�, Storm water programs vary by EI Paso 2006 P region Houston 2011 Dedicated fee allows for proper Fort Worth 2012 Q maintenance and long-term Arlington 201 planning of storm water system Corpus Christi 2022 20 Creating a Drainage Utility CLEAN '.' / Remove storm water from the +' water rate to create financial BAYS transparency START AT HOME Before the fee was based on STORM AP water consumption which hasj wwTno direct correlation to Keep ff Ueak! drainage runoff X;4 Create a stable revenue stream Q to maintain and improve StormAk ; �. Water system 21 CURRENT FEE STRUCTURE Prior vs New Approach Estimated Impervious Area by Type Previous Fee Structure Current Fee Structure ,0% 0 MAN =' _.WA �3% ■Residential Non-Residential ■Residential Large Volume N Non-Residential ■Residential Non-Residential BASIS OF THE FEE STRUCTURE IMPERVIOUS COVER Impervious Area Business—85% Impervious d� a� 24 Parcel Types Equivalent Residential Unit (ERU) Single Family Impervious area of a typical SFR is 3,280 sq. ft. ' Residential (SFR) 3 Tiers Intensity of Development Factor Equate Impervious Area to ERU'S Non- [Parcel Area X Factor] / 3,280 = ERU's [� Residential Agricultural Example: ©n© (NSFR) 22 Ac. X 43,560 sqft/ac x 0.05/3,280 = 15 ERU's 15 ERU's x $6.12/ERU = $91.80 per Month Intensity of One-Family Residential District Al,A2,A4,B2, B4, E1, 9,282 02,Manual Estate District D2,C2C,C11,01 0.35 358 Townhouse Dwellings/Multiple 611, B3, B5, r Intensity of Dwellings Districts; Manufactured B7 B8 B9 0.65 Homes I= Development Apartments B1, B10, B6 0.80 393 Factor Business District ' F1 ■■ 0.85 - Industrial District F2, F3, F4, F5, 0.7 194 J3,J4,J5 Railroad Yard Areas 0.30 Parks, Playgrounds,Greenbelts, 0.31 0 Cemeteries Private Streets L 0.83 Agriculture Uses D1, ESR, E2, E3 0.05 55 Commercial Stock C1 0.17 Manual Varies Varies 49 Impact of Impervious Area Examples Single Family Residential (SFR) Parcel Size 5,501 sq. ft. 15,000 sq. ft. Storm Water Usage (Impervious Area) 5,501 x 0.5 = 2750 sq.ft. 15,000 x 0.5 = 7,500 sq. ft. Tier 1 Tier 3 Proposed Storm Water Rate $5.77 $13.46 Impact of Impervious Area Examples Non-Single Family Residential (NSFR) Ilk P111 ill III III! r Parcel Size 52,573 sq. f � 52,598 sq. ft. Storm Water Usage (Impervious Area) 52,573 x 0.85/ 3,280 = 52,598 x 0.85/ 3,280 = 14 ERU's 14 ERU's Proposed Storm Water Rate 14 ERU's x $7.69/ERU = $107.66 14 ERU's x $7.69/ERU = $107.66 FY 2022-2027 Service Enhancements Forecast Fund 4300 — Storm Water Fund STORM WATER SERVICES FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027i G Storm Water Inlet 3.5 1.3 1.3 1.3 1.3 1.3 ., Cleaning & Maintenance years years years years years years Vegetation Management ' ROW Mowing 20x 20x 20x 20x 20x 20x In-House Street Residentials 2x 2x 2x 3x 4x 4x Sweeping Program Collectors 2x 4x 6x 8x 10x 12x — ,; (Non-Existent Prior to FY22) Arterials 8x 8x 10x 10x 10x 12x ML Minor Channel ("Bar Ditches") As As 6.0 3.0 3.0 3.0 Cleaning & Maintenance' Requested Requested years years years years Major Channel/ Natural Creek Way 2.0 2.0 2.0 2.0 2.0 2.0 Restoration & Maintenance' years years years years years years �` 3 CCTV of 679 Miles of Underground 35 35 35 35 wi.r ..R System N/A N/A $850k/Year Miles Miles Miles Miles FY 2023-2027 Five-Year Enhancements Forecast Fund 4300 — Storm Water Fund FY 2023 FY 2025 FY 2026 FY 2027 PROPOSED IMPROVEMENTS Mir Inlet Cleaning and Inspection Crew Enhancement Q FY 23:Add one 7.0 FTE crew and capital equipment Emergency Storm Water Infrastructure Improvements FY 23:Funding for emergency capital storm water projects Staff Professional&Technical Development Training O FY 23:Funding for technical staff training and Q certifications In-House Street Sweeping Program Enhancements FY 24: Purchase 2 Street Sweepers&Add 5 Sweeper Operators FY 25: Purchase 2 Street Sweepers&Add 2 Sweeper Operators FY 26: Purchase 3 Street Sweepers&Add 4 Sweeper Operators Minor Channel Maintenance Service Enhancement FY 24:Add one 8 FTE crew and capital equipment i(y i f(y' FY 25:Add one 8 FTE crew and capital equipment �J Vegetation Management Targeted ROW Herbicide Program i(� FY 24:Add one 2.0 FTE crew and capital equipment Maintenance of Storm Water Lines Service Enhancement I O FY 24:Add one 16.0 FTE and capital equipment 30