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AUTHORIZE SEWER SERVICE AGREEMENT RENEWAL FOR THE PROVISION OF WASTEWATER TREATMENT SERVICES BETWEEN THE CITY OF STOCKTON AND COUNTRY CLUB SANITARY DISTRICT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize Sewer Service Agreement renewal for the provision of wastewater treatment services between the City of Stockton and Country Club Sanitary District; and
2. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton Municipal Utilities Department (MUD) has provided conveyance and treatment services for the Country Club Sanitary District since 1979. This Agreement is like other Sewer Maintenance District Agreements between the City of Stockton and San Joaquin County, in which the City provides wastewater treatment services to areas in the unincorporated County within the City’s sphere of influence and urban service boundary. Staff is requesting authorization to renew the Sewer Service Agreement with Country Club Sanitary District, due to expire on June 30, 2018. This new Agreement shall become effective upon the date of the last signatory and will expire on June 30, 2028.
DISCUSSION
Background
Country Club Sanitary District (District) is in an unincorporated area surrounded by the City of Stockton, which is predominately built-out except for a few vacant parcels. The District area is within the City's sphere of influence and urban service boundary. The District provides wastewater collections services to this county area bounded by Pershing Avenue to the east, Smith Canal to the south, Michigan Avenue to the north, and Franklin Avenue to the west (see Attachment A). Wastewater treatment is provided by the City of Stockton for the District through this Agreement, while the District is responsible for the operations and maintenance of the sewer infrastructure within the District’s boundaries.
In 1977, as part of the regionalization of wastewater services, the City first entered into an Agreement with the District to provide wastewater conveyance and treatment services for a term, which expired in June 1987. The Agreement has subsequently been renewed by City Council every ten years through June 30, 2017. Lastly, Change Order No. 1 provided one additional year of services through June 30, 2018.
Present Situation
The District relies on the City of Stockton to provide treatment and disposal of wastewater generated within the District's service area. The MUD staff has conducted a review and analysis of the associated fees upon renewal of this Agreement pursuant with the City’s Fee Schedule and the Stockton Municipal Code (SMC), Chapter 13.08, Sewer Use and Chapter 13.12, Wastewater User Charges and Fees. Furthermore, any user charges, rates, and fees - which adjust during the annual budget approval process or based on a Cost of Service and Rate study - apply to the District’s users. Adjustments would pertain to Proposition 218 rate increases as well. A review of CFR 40 Part 35 to assure equitable costs for all users has also been analyzed and considered for renewal of the Agreement.
The proposed Agreement would continue the same level of service the City has provided in the past. The Agreement provides for the City to receive sanitary sewer discharges from the District and convey them to the Regional Wastewater Control Facility for treatment and disposal. The District will continue to maintain its collection system and will retain ownership of the District assets. The proposed Agreement (Attachment B) has been approved by the District Board of Directors as of May 1, 2018. The proposed Agreement shall be effective for the next ten years and will expire on June 30, 2028.
FINANCIAL SUMMARY
According to the San Joaquin County Assessor’s Office, there are 1,032 dwellings in the District, consisting of residential, commercial, and an institutional parcel. According to the City’s financial software, there are 1,011 coded residential parcels estimated to generate revenues of $459,892, and twenty-one coded commercial parcels anticipated to generate revenues of $105,629. The total projected revenues from the Country Club Sanitary District for FY 2018-19 ranges from $459,892 to $565,521.
There is no financial impact to the General Fund or any other unrestricted fund as a result of renewing this Agreement.
Attachment A - Map - Country Club Sanitary District
Attachment B - Sewer Service Agreement - Country Club Sanitary District