HomeMy WebLinkAboutAgenda - 09-20-2011 - 5kORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 20, 2011
Action Agenda
Item No. S
SUBJECT: Policy for Charging Efland Sewer Customers with Wells
DEPARTMENT: Planning
PUBLIC HEARING: (Y/N) 0
ATTACHMENT(S):
1. Excerpt from the Most Recent Version
of the Efland Sewer Rules Resolution,
as Last Revised on November 4,
2010, with Suggested Change Added
2. Memo from Paul Thames, Former
Orange County Engineer, Dated
March 9, 2000
INFORMATION CONTACT:
Kevin Lindley, PE, Staff Engineer, 245-
2583
Craig Benedict, Planning Director, 245-
2592
PURPOSE: To consider changing the current policy on monthly billing for Efland sewer
residential customers who use wells.
BACKGROUND: There are five current residential customers of the Efland sewer system who
are sewer-only customers. These customers each have a well that provides their water. Since
these customers are not connected to the Orange-Alamance Water System (OAWS), meters
are not in place to determine their monthly water and sewer usage. Under the previous rate
schedule that was in effect from 1989-2009, these sewer-only customers had been charged the
fee for 3,000 gallons of sewer usage per month, which was $15.20. The fee for 3,000 gallons
of usage was also the minimum fee that could be charged to any sewer. customer during this
time. In fact, the original resolution stated that well-users would be billed the minimum charge
each month.
On November 4, 2010, the BOCC adopted an amendment to the Efland Sewer Resolution that
set the monthly charge for sewer-only customers equal to a bill for 5,000 gallons of sewer
usage. This amount of usage was chosen after reviewing other municipalities' policies
regarding sewer-only customers and comparing to Orange County customers estimated
average use. Orange Water and Sewer Authority (OWASA) charges sewer-only customers as
though they use 6,000 gallons, and the City of Mebane charges sewer-only customers for
approximately 5,700 gallons of usage each month. For all customers, the Efland average bill
was approximately 4,940 gallons of usage per month during 2007 and part of 2008. This usage
data was gathered in preparation for the rate study that occurred in 2008 and represents the
most recent comprehensive water use data among Efland customers available at the time the
sewer-only customer policy was established.
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Main Issue
When the rate schedule was changed on July 1, 2009, the minimum charge became the base
charge of $7.25 and did not include any sewer usage. Therefore, the sewer-only customers'
bills went from $15.20 to $7.25 per month. On July 1, 2010, the base charge increased to
$10.16. After the BOCC approved the amendments to the Efland sewer resolution in
November 2010, which included the sewer-only customer billing amendment, all of the Efland
sewer customers were mailed a summary of the amendments adopted by the BOCC. This
letter included information on the upcoming change to the monthly bill for sewer-only
customers. The first revised sewer bills for. sewer-only customers were mailed around January
20, 2011. The new bills for sewer-only customers, based on a usage of 5,000 gallons per
month, were $54.26. Of the five sewer-only customers on the system, three either visited the
Staff Engineer's office or called with concerns about the high cost of the new bill and the basis
for determining the amount of the bill. Since that time the rates were increased again on July 1,
2011. The current monthly rate for 5,000 gallons of sewer usage is $66.98.
The main concern voiced by the sewer-only customers was that 5,000 gallons was far more
than they believed they were actually using. Of the customers with whom the Staff Engineer
spoke, two were families of two persons and one was a family of three persons. These
customers believed, based on anecdotal evidence from friends and neighbors whose water use
is metered, that they were using less than 5,000 gallons per month and should not be charged
for something they were not using. These customers were also concerned that their bill had
risen so dramatically in such a short time. In addition, the customers represented that they had
limited income and the increase of over $40 in their monthly bill would be difficult to pay.
Is This Reasonable?
There is data to suggest that the sewer-only customers who met with the Staff Engineer use
less than the 5,000 gallons for which they are being billed. The Environmental Protection
Agency (EPA) did a significant study in 2002 on residential water use that suggests a range of
water use between 40-60 gallons of water per person per day, with the lower end being
applicable for rural communities whose water comes from wells. Given this, it would be
reasonable to assume that a family of three in the Efland area on a well would use between 120
and 150 gallons of water per day, or 3,600 to 4,500 gallons per month.
In addition, a study was performed by Orange County engineering staff in 1999-2000 which
indicated an average residential water use in the Efland Area of 4,370 gallons per month. The
purpose of the study was to determine if there was a correlation between house size in heated
square feet and water consumption. It was determined that there was approximately a 30%
differential between the largest sized group of houses (over 1,800 square feet) and the smallest
sized group of houses (under 900 square feet). A memo summarizing this study is provided at
Attachment 2.
Finally, in reviewing the data used to set the monthly bill at 5,000 gallons of usage, staff realized
that although the average of all customer use from the 2007-2008 year was close to 5,000
gallons per month, the average residential use was less. Closer examination revealed that the
average residential water use during that time period was closer to 4,200 gallons per month,
which aligns more closely with the 1999-2000 study.
Metering -Potential Solution and Secondary Issues
The current policy (Attachment 1), as amended on November 4, 2010, states that if a customer
believes they are using less than 5,000 gallons, they may install a meter on their well at their
expense which would then be monitored each month to determine their usage. The bill would
then be based on the actual usage rather than the set amount of 5,000 gallons per month. This
is a potential solution to the customers' issue with the amount for which they are being billed.
The upfront installation cost would likely be $300-$500, depending on the site. However, at the
current sewer rate of $10.86 per thousand gallons, if a customer was using 3,000 gallons per
month, they would save $22.26 per month on their sewer bill. This gives a payback time of
approximately 18 months for the meter installation. As the sewer rate increases, the. payback
time will decrease even more.
However, there are at least two issues with this alternative. First, the customers who spoke with
the Staff Engineer have stated that paying $54.26 per month is difficult or impossible for them.
This would likely make paying $300-$500 to install a meter that much more difficult or
impossible. In addition, even if their bill averaged 3,000 gallons per month after the meter was
installed, this would still represent roughly a 400% increase per month when compared to the
previous $10.16 bill. So, even though the payback time for meter installation is real and based
on future savings, it is hard for the customer to think of it this way since their bill is still
increasing either way.
Second, OAWS policy does not allow for its meter readers to enter private property for the
.purpose of reading meters. This would preclude them from reading well meters as the meter
would most likely not be in the public right-of-way. Therefore, if the customer elected to install a
meter on a water line, OAWS would not be able to read it for the County as they do for the rest
of the Efland sewer customers. This means the County would have to enlist some other means
of obtaining the meter information. This could be via a privately contracted individual, a County
employee, or the customer self-reporting the meter reading to the OAWS office. Each of these
options has its advantages and disadvantages, but in every case would represent either
additional expense, liability, and/or staff time, thereby offsetting revenue brought in by the billing
adjustment. In addition, discussion of these meter reading options presupposes that the
customer has the initial financial ability to pay for the meter installation.
Moving forward
Because there are many facets to this problem and staff believes more research needs to be
done to adequately address the issue, staff is proposing to temporarily set the monthly bill for
sewer-only customers at 3,000 gallons per month, which would translate to $45.26 per month.
Recent census data suggests that the average household size in the Efland area is 2.5 persons
per household. Using an estimate of 40 gallons per person per month from the previously
noted EPA study, this translates to roughly 3,000 gallons of water usage per month. This would
alleviate the loophole that occurred when the rate structure was changed and also happens to
coincide with the amount of water use per month for which sewer-only customers used to be
billed. Staff proposes enacting this retroactively to the start of the fiscal year. In two months,
staff will bring forward a proposal for a more flexible policy for sewer-only customers that can bill
more accurately for the estimated usage than the current policy.
FINANCIAL IMPACT: The loss of revenue due to lowering the monthly bill for sewer-only
customers is approximately $22 per month per customer, or $110 per month total.
RECOMMENDATION(S): The Manager recommends the Board approve this interim policy
change until a more permanent solution can be studied and developed.
~Y~MGI~~
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Easement and Agreement signed by them within 30 days of notification that
connection can be made. Astub-out Service Line Fee shall be due from, owed and
paid by the user within fifteen (15) days of mailing to the user of an Orange County
invoice for the fee.
TV. APPLICATION FOR SERVICE
Persons seeking service may make application in person at the office of the Orange
County Planning Department. The application requirements are as follows:
1. A deposit as provided in Article V of these rules must accompany the application
and be paid at the Orange County Planning Department or such other place as is
dESi=grated by Orange County from time to time. A Sewer Use and Easement and
Agreement must be on file, signed by the property owner(s)/users.
2. 'The conditions set forth in Article IX of these rules must be satisfied in the case of
an application for service to undeveloped land.
3. Any former user may again become a user by fulfilling the application requirements
set forth in this article and by paying any applicable availability or other fees. In
addition, any such former user applying again to be a user must pay any outstanding
account plus interest thereon at the legal rate as'it is established in-North Carolina
General Statutes Section 24-1, its successor, and as the same is amended fromtime
to time, compounded annually. Any person who has actually used and benefited
from sewer service which has been supplied to premises owned or directly -occupied
or used by that person, for which service there is an outstanding indebtedness
remaining due the County, may become a user by completing the application
requirements in this article, by paying any availability fee or other applicable fee
and by paying the outstanding indebtedness for the service which was supplied to
the premises owned or directly occupied or used by such person.
V. DEPOSIT
A. A minimum cash deposit is required of all users. It shall be equal to the equivalent
sewer bill for two months- at 3000 gallons ner month. The deposit shall be paid
either in full at the time an application for service is made or in a maximum of three
equal consecutive monthly installments, the first of which must be paid when an
application for service is made. Deposits will not draw interest.
B. A separate deposit will be required for each connection.
C. Each deposit may be redeemed by the user upon disconnection from the system and
upon payment in full of all charges for service.
'~ VI. IlVITIAL OR MINI-MUM CHARGE
A. There will be a separate account established for each sewer connection to the
system. Each such account will be in the name of the user. The monthly charge as
provided in the rate schedule (see Attachment A} will be assessed for each account.
B In tliQSe-cases w~iere-the connection is to property wh~~h re~ctve~ its-W~t~r~bywe~l
the wontlily cliare will be tli't cstablished.in the'ratc scl"iedule for a_usage`o,~~8A9
X000 ~~.llgtls ptr montl,vnless w~tcr consumption exceeds this a<no~nt. Tlie
~Gounty reserves tlrenglit to meter-the well of any user-to dctertmtte that user ~,
water ~~~g~ The c~s~a~tl~~ui~ter and the c~stt~ cozu~t;ct t~,~:n~ex~r to tt~e,user'
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C. In those cases where the connection is to property which is in a residential
development which has received substantial funding from Orange County as an
affordable housing project consistent with the Orange County Long-Term
Affordability Policy, there will be a monthly charge established in the rate schedule
far a fund for the perpetual inspection and maintenance of any pump station serving
the development.
VII... COUNTY'S RESPONSIBILITY AND LIABILITY
A. The County will run a service line from its collection line to the property line,
except as provided in Article IX, relating to extensions of the system.
B. All plumbing installed by the user for cannection to the system will be installed
according to the North Carolina. State Plumbing Code and will be permitted,
inspected and approved by Orange County.
C. The County is not liable for damage. of any kind resulting from sewage or its
collection from-the user's premises, unless such damage results directly from
negligence on the part of the County. The County is not responsible for any
damage done or resulting from any defect or operation failure in the plumbing
installed by the user, or in any fixtures or appliances an the user's premises: The
County is not responsible for negligence of third persons in the installation or
operation of the System. The County is not responsible for damage caused by
forces beyond its control or for the interruption of service caused by forces beyond
its control.
D. Except in the case of an emergency, the user will be notified in advance of any
anticipated interruption of service. In the case of an emergency the user will be
notified as soon thereafler as possible of the interruption of service.
VIII. USER'S RESPONSIBILITY
A. The user is responsible for payment of all monthly service charges incurred in
connection with sewer service. The owner of the premises to which services are
delivered is responsible for all charges as provided for in the Sewer Easement and
Agreement. If a delinquent user is nat the owner of the premises to which services
are delivered, the payment of the delinquent account will not be required. before
providing services to the premises at the request of a new and different tenant or
occupant of the premises except as provided in Article IV.3. of the Rules.
B. The user is responsible for installing all plumbing and apparatus necessary to
connect to the County's service line and for connecting all plumbing and appazatus
to the- County's service line. Provided, however, no such connection shall be made
without a permit to do so issued by the County and upon such ternns and conditions
as the permit prescribes.
C. All plumbing and apparatus installed by the user will be ins#alled and maintained at
the user's expense in accordance with the County's rules and regulations and any
other State or local requirements.
D. The user will exercise reasonable care and will be responsible for the exercise of
reasonable care by anyone on the user's premises with the user's permission over
any portion of the County system located on the user's premises. Authorized
County representatives will be permitted by the user to access the user's property in
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,~~,-~ a.
MEMORAi`1DUM
TO: County Commissioners
Toter; Link, County Manager
FROM: Paul Thames, PE, County Engineer
DATE: March 9, 2000
SUBJECT: Preliminary summary of the evaluation of relationship between water use and home size
in the Efland area
The BOCC, at the 19 October 1999 meeting and public hearing on revisions to the "Rules and
Regulations for Operation of the System" for the Efland sewer system, adopted a revised fee structure
for access. and taps onto the system. The Board did, however, direct staff to conduct a study of water
use in the Efland area to determine if there was a demonstrable correlation between water use and size
of dwellings. The underlying concept was to ascertain (in a manner similar to a recent OWASA water
and sewer availability fee study) if a sliding scale of availability fees determined by home size could be
j Usti-feed on the basis of varying degrees of service demand impact on the system.
Accordingly, County Engineering .Associate Abdoul Koura-Bodji has spent approximately 300 hours in
the process of collecting, evaluating, manipulating and analyzing water use and property tax record data
on current Orange-Alamance Water System.customers. The data collection effort has been targeted at
those customers living in the area that would become a part of a built-out Efland sewer system if that
system were developed in accordance with~the 1986 sewer master plan.
The study area, includes approximately 532 metered customers of Orange-Alamance (the area also
contains an unknown number of homes served by on-site wells). However, the analysis of water use
relative tQ home size eventually came to include only 458 customers. Forty-two customers were
eliminated asnon-residential users. An additional thirty-two customers were eliminated because the
water use records were problematic (building may have been unoccupied, for example) or because the .
customer records could not be matched with the County's property and property tax data (size of
~~building could not be determined). Of the 458 customers included in this analysis, 348- were in "stick-
built" houses and~fixed foundation double-wide mobile homes (bath types of dwelluag having property
tax data that includes heated squaze footage). The remaining 110 customers were in single-wide mobile
homes thaf were assumed to have a maximum size of 700 square feet. The average home size,
excluding the single wide trailers, was found to be 1320 square feet with an average monthly watez use
of 4370 gallons. The average water use for the single-wide trailers -with the assumed average size of
700 square feet -was found to be 4150 gallons per month.
Analysis of the data collected for the customer base described above does show a relatively consistent
and direct correlation between the size of a home and the amount of water used if the water use of the
sin~te-wide mobile homes is not included iu the analysis: The water demand for the single wide
mobile homes, when compared to the square footage of the units, is such that it skews the analysis.
When home sizes are separated into five ranges -less than 900 square feet, 901 to 1200 square feet,
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1.201 to 1500 square feet, 1501 to 1800 square feet, and greater than 1800 square feet, there is a nearly
straight-line increase in average water use. However, unlike the OWASA study which showed afive-
folddifference in water use between its smallest and largest bonze size ranges, the Efland analysis shows
only an approximate thirty percent increase from the smallest to the largest home size ranges.
There are a number of reasons why the Efland study has produced resttits that differ so drastically from
those produced by the OSASA study. Among the most telling of these are that: 1}the houses in Efland
are much smaller and Less expensive than those in the OWASA service area and have fewer water-
consumingamenities such as whirlpool baths, hot tubs, swimming pools and lawn irrigation systems;
2) the average income of the residents of Efland is much lower resulting in more financially
conservative consumption characteristics; and 3) Efland is still a primarily rural area which would
typically be expected to exhibit more conservative water use practices than those of the urbanized
OWASA service area.
The primary implication of the Efland water use analysis is that a sliding fee scale based solely on a
prof ected relationship between home size and system demandlimpact can provide a thirty percent
difference between the bottom and top of the scale. Based on a $1000 mid range fee, homes falling in
the lowest range would pay approximately $850 while homes in the largest range will pay
approximately $1150. .
Engineering staff are currently in the- process of preparing a more formal reporting of this analysis,
outlining the process of da#a collection and analysis, comparing the Eflazzd report and outcome with the
OWASA~ study, noting the problems ofeollecting Efland data and shortcomings in that data, etc. That
report wilt be submitted to the BOCC later in March: A simple chart summarizing the relationship
between water use and home size is attached to this memorandum. If I may provide additional
information at this time, please advise.
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MOBILE HOMES 4139
LESS THAN 900 3774
901 -1200 ¢030 7q,
1201 -1500 4572 13e/
1501-1800 6725 3%
GREATER THAN 1800 5050 7q,
FIGURE 1
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FIGURE 2
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X
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J 3000
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~ 2000
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a 1000
0
0 200 400 600 800 iQ00 1200 1400 7600 7800 2000
HEATED SAUARE FEET
A4OBILE HOMES LESS THAN 900 901 70 f 200 f 201 TO 15~ 1501 TO 1800 GREATER THAN
1900
HSP.TED 34UARH FEET
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