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Reductions on Waste Water Rate

Dcalhoun

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Our community of approximately 35,000 people is experiencing large and sustained annual increases in waste water rates. I am trying to organize the local car wash owners to see if we can get some relief from the rates. My question for you is, has anyone had any success in petitioning their local water authority for a reduced rate for car washes? If so, on what merits did they agree to a reduced rate? Does any association have a successful track record on this? Any help would be appreciated.
 

Ric

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Our community of approximately 35,000 people is experiencing large and sustained annual increases in waste water rates. I am trying to organize the local car wash owners to see if we can get some relief from the rates. My question for you is, has anyone had any success in petitioning their local water authority for a reduced rate for car washes? If so, on what merits did they agree to a reduced rate? Does any association have a successful track record on this? Any help would be appreciated.
I recently tried and got turned down. I have now asked if I can install a sewage meter. Have not got an answer on that yet.
 

robert roman

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Associations have record helping operators avoid interruption of business during drought. I do not believe there is record in mitigating billing rates.

Generally, water/sewer rates are set to cover expense of treatment, transmission and maintenance. Other expenses may be debt service on bonds for capital programs and rent/lease obligations.

Factors affecting water/sewer rates include water source, number of customers, miles of pipe and terrain. So, rates vary. Rates for new system carrying high debt in low density area can be 4 times as much as an older system with little debt in high density.

Need to raise rates can be caused by higher treatment costs, expansion of facilities, change in demand or leaky pipes. Economic factors also cause more communities to use water/sewer revenue to supplement cash flow.

Water/sewer rates have historically been inexpensive relative to other utilities but in most large cities rates are increasing faster than inflation and income growth.

So, businesses that use a lot of water often develop water management plans. The first step of such a plan is to understand the environment.

Most likely the authority has approved increases out to future years to keep up with increasing cost to process waste, fund new infrastructure or offset “declining” water sales.

So, I doubt authority would show much sympathy because mitigating factors are available to you.

The most obvious is to pass cost to customers. Another is conservation; machine efficiency and/or reclaim. Many older touch-less in-bays are water-hogs using 75 gallons of water or more. New technology uses less – smaller pumps, better profiling, more efficient delivery, etc.

As for wands, which have lost low-cost advantage, you may find some efficiency by increasing pump pressure and reducing water flow.
 

Dean Taylor

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Install a good water reclaim system and you will reduce your water and sewer 70%-80% right out of the gate. If your bills are over $1K a month, it's time to look into it. Not only that, you won't have to worry what they say or do anymore.
 

Earl Weiss

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I am trying to organize the local car wash owners to see if we can get some relief from the rates. My question for you is, has anyone had any success in petitioning their local water authority for a reduced rate for car washes? .
I suggest that the first thing you do is review the ordinance. If the sewer rate is pegged to the usage rate then you are spitting in the wind trying to avoid this government lie. They call it a sewer or waste water rate irrespective of the fact that there may be a huge disconnect between useage and waste water. Examples abound such as locations with large landscape uses.

Would they get a reduction as well?
 

Ric

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I suggest that the first thing you do is review the ordinance. If the sewer rate is pegged to the usage rate then you are spitting in the wind trying to avoid this government lie. They call it a sewer or waste water rate irrespective of the fact that there may be a huge disconnect between useage and waste water. Examples abound such as locations with large landscape uses.

Would they get a reduction as well?
I was allowed to install a separate meter for lawn irrigation.
 

Dcalhoun

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Thanks for the comments. Our situation is one of replacement of the current waste water treatment plant with a new one to meet EPA guidelines. The rates approved by the city council a few years ago were graduated and extend out 20 years with increases basically every year for the duration. I have seen some municipalities have reduced rates for car washes and increased rates for restaurants and hotels. I was hoping some of you might have been down this road before and could offer some advise. It looks like all the car wash owners in our town are on board with at least making an attempt at some relief.
 

robert roman

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The process of achieving a sustainable and equitable rate structure for fresh water and waste water treatment depends on population, water source, previous approach to pricing, types of users and amounts used and whether the municipality manages water and sewer treatment has a separate or combined enterprise fund.

Rural areas have the toughest row to hoe simply because there are not many residents and commercial users to foot the bill.

If the cash flow model is 20-years, this suggests an area that is not growing with declining revenues and capital reserve fund. This background is usually associated with municipalities with aging systems that did not charge customers for actual cost of service.

I live in Pinellas County, Florida – over 3,000 people per square mile.

Our population is declining, property values dropped by 40 to 50 percent (less tax revenue), unemployment is high (many “undocumented workers” have left due to lack of work), lots of business closures, etc.

Our main problem is water not treatment – our aquifer was essentially destroyed years ago by mismanagement and overuse and now we have to buy water from other areas at a great distance meaning significant increased cost.

In your case, planning out 20-years was mostly likely out of necessity to avoid significant rate shock to residents who are minimal users with less resources at hand in relation to commercial users.

Of course, other carwash operators are on board for lower rates, who wouldn’t?

However, in a rural area, when push comes to shove, I doubt there will be much sympathy from the general public when you ask for rate adjustment when they have no such recourse.

As Dean mentioned, a possible solution would be reclaim as well as conservation measures plus passing cost to customers.

Good luck.
 

Dcalhoun

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Just wanted to post a follow up. I have been in discussion with our local 'officials'. They are very receptive to working with us and seem sympathetic at this point. I sent them an ICA study released in 2002 which deals with evaporation and water use and have asked for a reduction of 25% due to the amount of fresh water lost to the environment and not returned to the waste water system. Also added that we separate solids in the pits sending them brown water and not black water. I'll try to remember to keep you updated as the process moves along. So far, I am very optimistic that we will see some relief.
 

Dcalhoun

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Here is an update, such as it is, in our quest for relief in waste water charges due to water from run off and evaporation not going back to the system. It has been over a year since we started discussions with the city. We have seen many delays and a change in the city manager. Our request was denied and then reopened. Current city manager seems sympathetic but has 2 roadblocks. The common municipal dilemma: if we make an exception where will it end? And 2nd, they want precedent from another authority because "we can't be the first to do something." Hopefully, the ICA can offer some assistance as they think they can.
 

Waxman

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all you can do is ask if they will allow a sewer meter. that is all that makes sense.

you have to show them that it makes sense but also somehow allow the sewer meter to become 'their idea'.
 

Dcalhoun

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They have already suggested the meter, but I was hoping to avoid the expense and hassle. Governments use outside research all the time to make policy decisions - including polling data. So there is plenty of precedent for me to not reinvent the wheel.
 

Waxman

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if it were me i'd install a sewer meter immediately.

the sooner you put it in, the sooner the savings mitigate the expense/hassle you speak of.
 

Ric

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If they are allowing you to install a sewer meter I would do it. I can't even get my city fathers to allow me to do that.
 

Rainway

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I know this is an old thread but one thing to look out for is 1) are there any large customers that are a cost driver and 2) is everyone paying the same rate? All metered customers where I live pay the same rate and we have a large local brewery that is the largest customer for the system. Wastewater treatment plants were not designed to treat wastewater from the brewery. It takes a lot of aeration (higher electrical driver) to treat their discharge. They also have a lot of total suspended solids (TSS) that can’t be settled out that throws off pH, etc. depending on the brew cycle that’s going on. A lot of communities with large breweries have a separate charge specifically for breweries based on their production in recognition of the high TSS and Biological Oxygen Demand (BOD). Some communities assess these additional charges on other industries besides breweries but I’m finding that’s the big one that really drives a lot of the burden on a w/w treatment facility.
 
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