TAMRMS#: B06
10.1
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Variable Wastewater Rates
Notice given by: Councillor Killick
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PROPOSED MOTION(S):
recommendation
That the variable wastewater rate that is based on 80% of metered water consumption for residential customers be eliminated in favour of variable wastewater rates that are based on 100% of metered consumption for all customers that receive both of these utility services, with this change incorporated into 2024 budget planning and implemented in 2025.
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ADMINISTRATION’S UNDERSTANDING OF THE INTENT OF THE MOTION
PURPOSE OF REPORT
The purpose of this report is to present a motion for which Councillor Killick gave notice on March 4, 2024.
BACKGROUND AND DISCUSSION
The City of Ct. Albert has two different customer classes with two different variable rates for wastewater (2024 rates shown below):
• Non-residential customers pay $2.51 per m3 based on 100% of their metered potable water usage.
• Residential customers pay $3.14 per m3 based on 80% of their metered potable water usage. This rate is 25% higher than for Non-residential.
However, both of the above rates are the same when adjusted to 100% of the metered potable water usage ($3.14 x 80% = $2.51). Applying the same 100% wastewater rate to all customers would not impact the amount that any St. Albert customers are paying and would not change the revenue that the wastewater utility receives to offset costs.
Administration does not know the original purpose behind the two different rates. However, it is likely that the intent was related to seasonal outdoor water usage, given that some customers can have the impression that that they are paying for a service that they are not using with water consumption that does not connect to wastewater plumbing.
The City has our own internal costs to collect and convey wastewater and bill customers, however the majority of our wastewater utility costs are for external conveyance and treatment by Arrow Utilities. This is calculated based on 100% of the metered volume of water that the City purchases and the City does not receive a reduction based on the amount of water that does not enter the sanitary wastewater system.
From a review of fourteen municipalities in the Edmonton region, St. Albert is one of only three that charge a variable wastewater rate based on a percentage that is other than 100% of the metered water consumption for residential customers.
Administration is supportive of this Council resolution to eliminate the 80% wastewater rate and use a variable rate for wastewater that is based on 100% of metered flows to all customers that receive services for both water and wastewater. This is not a complex calculation, but it is not necessary. In the short-term immediately following such a transition, questions and concerns can be anticipated that will require some explanation. In the long run, this change would be expected to reduce complexity and misunderstandings with customers.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
An explanation of this change would be provided as part of customer bills in early 2025.
IMPACTS OF RECOMMENDATION(S)
Financial:
None. If this motion was approved, the revenues to the City would remain unchanged.
Compliance & Legal:
None at this time.
Program or Service:
None at this time.
Organizational:
Some administration will be required to implement this change and respond to related customer inquiries. The impact is expected to be minimal if done in conjunction with the 2025 budget.
Risks
None at this time.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Not applicable.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Not applicable.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Not applicable.
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the recommendation, a “Do Nothing” alternative can also be considered.
Financial:
None at this time.
Compliance & Legal:
None at this time.
Program or Service:
None at this time.
Organizational:
None at this time.
Risks
None at this time.
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Report Date: April 2, 2024
Author: Regan Lefebvre and Stephen Graham
Department: Public Operations and Financial / Strategic Services
Department Director: Timothy Saunders and Anne Victoor
Managing Director: Diane Enger and Diane McMordie
Chief Administrative Officer: William Fletcher