PROPERTY OWNERS MEETING SEWER SERVICE RATES Crystal Springs County Sanitation District Crystal Springs County Sanitation District (District) (District) Highlands Elementary School Highlands Elementary School 2320 Newport Street 2320 Newport Street San Mateo Highlands San Mateo Highlands May 4, 2010 May 4, 2010 6:30 P.M. 6:30 P.M. County of San Mateo County of San Mateo Department of Public Works Department of Public Works
MEETING PURPOSE � What’s Taken Place Since Public Meeting Last Year � Recommended Rate � Composition of Rate
SUMMARY OF EVENTS � Administrative Civil Liabilities Claim / Cease and Desist Order � Flow Monitoring / Hydraulic Modeling � District Flow Meter Study / Recommendations � Disputed Outstanding Debt to City � Communication with the Town & City Regarding Past and Future Costs � State Revolving Fund Loan
ADMINISTRATIVE CIVIL LIABILITIES / CEASE AND DESIST ORDER � Effective March 11, 2009 the District, City of San Mateo, and Hillsborough were issued an Administrative Civil Liabilities (ACL) and Cease and Desist Order (CDO) � ACL (fines) and CDO (requirements) are enforcement tools used by the Regional Water Quality Control Board to reduce sewer system overflows � ACL fines were based on sewer system overflows between December 1, 2004 through May 31, 2008 � District sewer system overflows primarily caused by root intrusion into sewer mains
WHAT WERE THE FINES? � Administrative Civil Liabilities claim against each agency: � District – $23,375 (paid in April 2009) � Hillsborough – $175,000 payment & $225,000 for a Supplemental Environmental Project � San Mateo – $190,000 payment & $760,000 for a Supplemental Environmental Project � Administrative Civil Liabilities - $5,000 per day or $10 per gallon for sewer system overflows � Non-compliance with the CDO can result in additional fines
CDO REQUIREMENTS COMPLETED SO FAR… � January 2009 – installed flow meters � June 11, 2009 – completed State Revolving Fund loan application � June 15, 2009 – submitted overflow response plan
� November 15, 2009 – submitted the following reports: 1. Sewer System Cleaning and Root Control Program Report 2. Maintenance Management System Report 3. Fats, Oils and Grease Control Report 4. Sewer Pipe and Manhole Inspection and Condition Assessment Plan and Annual Report 5. Collaborative Implementation Report - prepared and submitted by City of San Mateo � March 11, 2010 – submitted preliminary financial plan for District capital improvement projects � Collaborative Implementation Study (District, Hillsborough, and City of SM) is under way
UPCOMING CDO REQUIREMENTS AND DUE DATES Order Requirements Due Date Order Requirements Due Date 1. Annual Reports: Annual Reports: 1. � � Sewer System Cleaning and Root Control Program Sewer System Cleaning and Root Control Program May 15, May 15, � � 2010 Collection System Flow Monitoring Results 2010 Collection System Flow Monitoring Results � � Infrastructure Renewal Infrastructure Renewal 2. Sewer Main and Manhole Inspections for Condition Sewer Main and Manhole Inspections for Condition Jul – – Aug Aug 2. Jul Assessment Program – – Phase I Phase I 2010 Assessment Program 2010 3. Commence Development of Plans and Commence Development of Plans and Sept. 11, 3. Sept. 11, Specifications for District CIP 2010 Specifications for District CIP 2010 4. Progress Report Summarizing Inspection Methods 4. Progress Report Summarizing Inspection Methods Nov. 15, Nov. 15, and Findings of Condition Assessments During and Findings of Condition Assessments During 2010 2010 Previous Year Previous Year 5. Sewer Main and Manhole Inspections for Condition Sewer Main and Manhole Inspections for Condition Apr – – May May 5. Apr Assessment Program – – Phase II Phase II 2011 Assessment Program 2011
CAPITAL IMPROVEMENT PROJECTS REQUIRED BY CEASE AND DESIST ORDER In District Capital Improvement Projects 8 remaining Capital Improvement Projects from Sewer Master Plan - $2.5 Million (cost per ERU $103/year if financed by State Revolving Fund loan)
CAPITAL IMPROVEMENT PROJECTS REQUIRED BY CEASE AND DESIST ORDER Downstream Capital Improvement Projects District will be required to pay a proportionate share of trunk line projects outside of the District (City and Town) over time: � Town of Hillsborough ($239/ERU for FY 10-11) • Crystal Springs-El Cerrito Trunk, Ph II or Detention - $8.6 Mil. (District 37% of $8.6 Mil.) � City of San Mateo ($314/ERU for FY 10-11) • El Cerrito Relief Sewer Line - $15 Mil. • Force Main - Dale Ave to WWTP - $18 Mil. • Other future projects (2013 and Beyond) � WWTP Expansion, Ph III - $10 Mil. � WWTP Hydraulic Improvements - $10 Mil. � Other WWTP Projects - $60 Mil. Total Estimated Cost = $121.6 Million Estimated District share = $ 18.1 Million
FLOW MONITORING / HYDRAULIC MODELING � Consultant completed flow monitoring study for District, City of San Mateo, and Hillsborough in 2009 � Study Findings: 1) Confirmed that District meter was reading high by 25-30% 2) Flow to Treatment Plant from District = 4% of total sewage treated at the sewage treatment plant 3) Flow increases during wet weather events due to Infiltration/Inflow in all jurisdictions
DISTRICT FLOW METER STUDY / RECOMMENDATIONS � Study has determined that District flow meter is reading high (Average Flows at 26% and Peak Flows at 29%) � Meter replacement options range from $25,000 to $120,000
DISPUTED OUTSTANDING DEBT TO CITY � Outstanding debt through March 2010 is $1.1 million � District is proposing a $1.5 million credit towards the outstanding debt due to inaccurate metering (covering FY 2005-06 through FY 2008-09)
COMMUNICATIONS WITH CITY OF SAN MATEO & HILLSBOROUGH: � Inaccuracy of District flow meter – Provided Analysis (Historical data and Engineering Methods) and Validation Data � Re-calculated percentages and costs based on flow reduction – effective with FY2007-08 payments � District’s overpayment and request for credit for past four years � Working with County Counsel and City/Town Attorneys to resolve dispute � Future capital improvement projects costs and timelines
STATE REVOLVING FUND (SRF) LOAN District has applied for SRF loan to finance District’s remaining 8 capital improvement projects identified in the Sewer Master Plan (estimated cost $2.5 million) � May 19, 2009 – Board of Supervisors (BOS) approved submittal of application � November 3, 2009 - BOS dedicated "capital improvement program component" of the annual revenue collected through sewer service charge for loan repayment � Approximate cost to each equivalent residential unit is $103/year for 20 years
RECOMMENDED RATE & RATE SETTING PROCESS DISTRICT IS AN INDEPENDENT ENTITY WITH ITS OWN SEPARATE BUDGET � 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 � District collects sewer service charges on the tax bill because it is the least costly way to collect the fee
RECOMMENDED RATE FOR 2010-11: $1,200 per year per equivalent residential unit (Current Rate - $1,000 per year) � Proposed increase of $16.67 per month � One year rate proposed � Supports District capital improvement projects through State Revolving Fund Loan Program � Supports anticipated downstream capital improvement project costs but not fully fund all work required by Regional Water Quality Control Board Cease and Desist Order
COMPOSITION OF PROPOSED RATE PER ERU ($1,200 PER YEAR) 2010- -11 11 2010 � Out of District Revenue Revenue expenditures are based on reduced Sewer Service Charges $ 1,200 Sewer Service Charges $ 1,200 flow percentages and Property Tax $ 29 Property Tax $ 29 to be financed by SRF Interest $ 3 Interest $ 3 loans or bonds Sub- Sub -total total $ 1,231 $ 1,231 Expenditure � Current Outstanding Expenditure City of San Mateo Operation & Maintenance $ 234 Operation & Maintenance $ 234 Debt is $1.1 Million – Treatment $ 271 Treatment $ 271 Not included in rate Out of District CIP Out of District CIP $ 586 $ 586 calculation District CIP (SRF) $ 103 District CIP (SRF) $ 103 Regulations $ 22 � Remaining County Regulations $ 22 General Fund Loan CDO Compliance $ 169 CDO Compliance $ 169 will be $600,000 Sub- Sub -total total $ 1,384 $ 1,384 Difference $ (153) Difference $ (153)
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