Explanation
SANITARY 2012
BACKGROUND
This ordinance authorizes an increase in sewer rates effective January 1, 2012 for the Division of Sewerage and Drainage.
The proposed rate configuration for 2012 recognizes that water and sewer charges disproportionately affect lower income groups and continues the Low Income Discount program that discounts participant's sewer commodity portion of their sewer bill by 20%.
Requested adjustments in rates result in a typical inside city residential sanitary sewer rate increase of 3%. When a water increase of 8% and a Stormwater decrease of 2% are considered the overall impact on a typical residential customer in the City of Columbus is 4.69% and for an outside city residential customer 5.38%.
In 2005, in Ordinance No.1904-2005, Passed November 28, 2005, Council created a Clean River Fee to recover costs of construction of projects necessary to meet the requirements of the two consent orders that mandate elimination of wet weather flow from Combined Sewer Overflows and Sanitary Sewer Overflows. This charge was assessed based on each property's measured impervious surface area. Since 2005, Council has approved across-the-board rate increases, including the Clean River Fee. In doing so, the Clean River Fee was not calibrated to pay for all wet weather construction costs. The Department of Public Utilities, with approval of SWAB, recommends that the Clean River Fee again be increased with an across-the-board rate increase. This will continue to allow wet weather construction projects to be paid for by a blend of the Clean Water Fee, based on ERU, and commodity charges.
The Division of Sewerage and Drainage charges industrial companies and extra strength charge. Extra strength charges are for the treatment of high strength wastewater generated by various industries that require additional treatment processes within the wastewater treatment plants. To address higher than normal extra strength charges and to stay economically competitive, the Department of Public Utilities with approval from SWAB are reducing the 2012 Extra Strength Charges by 10%.
The Sewer and Water Advisory Board met on October 12, 2011 and after reviewing the Department of Public Utilities projected expenditures for 2012, recommends to City Council an increase of 3% in sewer rates and reduce extra strength charges by 10%
FISCAL IMPACT: These rate increases will generate approximately $4.6 million in additional revenue in 2012.
Title
To amend Chapter 1147 of the Columbus City Codes 1959, to enact new sanitary sewer service rates for the year beginning January 1, 2012, and to repeal the existing Sections being amended.
Body
WHEREAS, it is necessary to establish new sewer sanitary services rates, effective January 1, 2012, for sewerage services to properties discharging into the sanitary sewerage system of the City of Columbus in order to recover the cost of rendering said sewerage services for the calendar year; and
WHEREAS, the City of Columbus, Department of Public Utilities, Division of Sewerage and Drainage requests a three percent (3%) increase in sewer rates for 2012 to pay for necessary ongoing operations and needed improvements; and
WHEREAS, the City of Columbus, Department of Public Utilities, Division of Sewerage and Drainage requests that the charges for industry Extra Strength rates be reduced by an amount of ten percent (10%), and
WHEREAS, in addition to the commodity rates, City Council finds it necessary to continue a Clean River Fee to fund the wet weather capital improvement projects required by the Consent Orders with the State of Ohio; and
WHEREAS, City Council finds that the most appropriate way to assess the Clean River surcharge is by correlating the surcharge to the amount of impervious surface, as the factor most closely associated with increased inflow and infiltration is impervious cover from urban development; and
WHEREAS, City Council recognizes that increased sewer rates disproportionately impact low income residents. Low income residents already pay a higher percentage of their household income in utility bills, and this percentage would increase with higher rates; and
WHEREAS, City Council further recognizes that past rate increases in the City have demonstrated that increasing rates leads to increased delinquencies among the City's customers; delinquencies rates are higher among low income residents. It is well recognized that increased delinquencies are expensive for the City and its customers; and
WHEREAS, City Council finds that continuing the discount rate for low income users at 20% is appropriate to assist those least able to manage the impacts of increased sewer and water rates; and
WHEREAS, the Sewer and Water Advisory Board has adopted recommendations that are consistent with the rates established in this legislation; and
WHEREAS, City Council finds that the rates and the low income discount established are equitable to all of the City's customers; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That effective January 1, 2012, Section 1147.11 of the Columbus City Codes, 1959, be and is hereby amended to read as follows:
1147.11 Rate Schedules.
(a) Charges Within Corporate Limits. For the purpose stated in Sections 1147.02 and 147.12 there is hereby charged to each user situated within the corporate limits of the city, having any active sewer connection with the sewerage system of such city or otherwise discharging sewerage, industrial wastes, water or other liquids, either directly or indirectly into the city's sewerage system, sewer charges as hereinbefore provided, and in the amount determinable as follows:
(1) For any such lot, parcel of land, building or premises having any connection with the city's sewerage system or otherwise discharging sanitary sewerage, industrial wastes, water or other liquids, either directly or indirectly into the city's sewerage system, such charge shall be based upon the quantity of water used therein as the same is measured by a water meter or meters there in use, as hereinafter described, and there shall be charged:
The charges as prescribed in the rate schedule as follows: SEE ATTACHED FILE
(b) Charges Outside Corporate Limits. For the purpose stated in Sections 1147.02 and 1147.12, there is hereby charged to each user situated outside the corporate limits of the city, having any active sewer connection with the sewerage system of such city or otherwise discharging sewage, industrial wastes, other liquids, either directly or indirectly into the city's sewerage system, sewer charges as hereinbefore provided, and in the amount determinable as follows:
(1) For any such lot, parcel of land, building or premises having any connection with the city's sewerage system or otherwise discharging sanitary sewage, industrial wastes, water or other liquids, either directly or indirectly into the city's sewerage system, such charge shall be based upon the quantity of water used thereon or therein as the same is measured by a water meter or meters there in use, as hereinafter described, and there shall be charged:
The charges as prescribed in the rate schedule as follows: SEE ATTACHED FILE
SECTION 2. That effective January 1, 2012, existing Section 1147.11, (a) and (b) of the Columbus City Codes, 1959, be and are hereby repealed.
SECTION 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.