Item 3 Reuse Wastewater Billing — original pdf

Backup

..De Item 3 Water & Wastewater Commission: February 19, 2025 Council: February 27, 2025 Posting Language ..Title Recommend approval of an ordinance amending City Code Chapter 15-9 (Utility Service Regulations) to authorize wastewater billing methodology for customers with onsite water reuse systems and customers with evaporative loss from cooling towers. Funding: This item has no fiscal impact. Lead Department Austin Water. Prior Council Action: December 11, 2019 – City Council voted to approve the Land Development Code Revision directing Austin Water to establish a regulatory program and an incentive program for Onsite Water Reuse Systems on first reading, on a 7-4 vote. February 13, 2020 – City Council voted to approve the Land Development Code Revision directing Austin Water to establish a regulatory program and an incentive program for Onsite Water Reuse Systems on second reading, on a 7-4 vote. December 10, 2020 - City Council approved an ordinance establishing City Code Chapter 15-13 relating to treatment, monitoring and reporting regulations for Onsite Water Reuse Systems, on a 10-0 vote. April 22, 2021 – City Council voted to approve an initial Pilot Incentive Program for Onsite Water Reuse Systems for the voluntary installation of alternative Onsite Water Reuse Systems, on a 10-1 vote. May 20, 2021 – City Council adopted a resolution directing staff to prepare an ordinance amending City Code Chapter 25-9 (Water and Wastewater) establishing water benchmarking, expanding Reclaimed Water Connection requirements, and adding Onsite Water Reuse requirements, on an 11-0 vote. June 10, 2021 – City Council adopted an ordinance waiving Planning Commission review of Land Development Code amendments in order to expedite implementation of water conservation strategies in the Water Forward Plan, on an 11-0 vote. September 30, 2021 – City Council adopted an ordinance amending City Code Chapter 25-9 (Water and Wastewater) relating to establishing new requirements for water conservation in the implementation of the Water Forward Plan, including expansion of the Reclaimed Water Connection requirement, water benchmarking, and mandatory Onsite Water Reuse for certain new developments and requiring an affordability report, on a 10-1 vote. November 9, 2023 – City Council adopted an ordinance to amend Ordinance #20210930-117 to defer the effective date for Onsite Water Reuse requirements for large development projects, on a 7-1 vote. March 7, 2024 – City Council adopted an ordinance amending City Code Chapter 25-9 (Water and Wastewater) relating to clarifying requirements for water conservation in the implementation of the Water Forward Plan, including distances for the Reclaimed Water Connection requirement, clarifying definitions, and modifying variances, including adding certain affordable housing exemptions for Reclaimed Water Connections and Onsite Water Reuse requirements., on an 11-0 vote. March 7, 2024 – City Council adopted an ordinance amending City Code Chapter 15-13 (Regulation of Onsite Water Reuse Systems) to establish development project requirements and clarify onsite water reuse regulations, on an 11-0 vote.  Item 3 Water & Wastewater Commission: February 19, 2025 Council: February 27, 2025 Council Committee, Boards and Commission Action: February 19, 2025 – To be reviewed by the Water and Wastewater Commission. Additional Backup Information: Onsite water reuse is a strategy in the Council-adopted Water Forward Plan to meet the city’s future water supply needs. In December 2020, City Council adopted the Onsite Water Reuse Systems ordinance to regulate the collection, treatment, and use of alternative water sources for non-potable in multi-family and commercial buildings. Onsite water sources include rainwater, condensation from heating/air conditioning systems, foundation drain water, and graywater from certain sinks, bathing, and laundry. In April 2021, Council approved an initial Pilot Incentive Program to encourage voluntary installation of Onsite Water Reuse Systems before initiating regulations to make Onsite Water Reuse Systems mandatory for certain development projects. In September 2021, Council adopted an ordinance to require an Onsite Water Reuse system for all new commercial, multi-family, and mixed-use site plan applications submitted on or after December 1, 2023 (later amended to be effective April 1, 2024) for development projects with a gross floor area of 250,000 square feet or greater. This ordinance will amend City Code Chapter 15-9 (Utility Service Regulations) to provide a more efficient wastewater billing option for Onsite Water Reuse Systems using alternative water sources such as rainwater and air conditioner condensate water for toilet flushing. This methodology can also be applied to customers with cooling towers that experience evaporative loss when they recycle water in the towers. The proposed wastewater billing for these larger-scale commercial and multi-family customers will use a calculated wastewater flow factor to assess the amount of wastewater discharged to the sanitary sewer each month, eliminating the need for customers to transmit private meter flow readings each month for the associated sanitary sewer discharges. This billing method will save the customer and Austin Water staff significant time each month by eliminating the need to manually read, transmit, and enter meter readings into an online portal and the City’s billing system. Currently, the San Antonio Water System uses a similar billing method, which also relies on the application of engineering calculations for assessing wastewater discharge to the sanitary sewer. Austin Water proposes new customers with onsite water reuse systems be required to use this wastewater billing method, and existing customers in the cooling tower evaporative loss program will have the option to apply for it. The methodology for calculating this flow factor will be included in the FY 2025-2026 proposed fee schedule that Austin Water will bring to the City Council in August 2025 through the annual budget adoption process. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 City of Austin Council Meeting Backup: February 27, 2025 File ID: 25-0216 ORDINANCE NO. AN ORDINANCE AMENDING CITY CODE CHAPTER 15-9 RELATING TO THE ADDITION OF WASTEWATER BILLING REQUIREMENTS FOR CUSTOMERS WITH ONSITE WATER REUSE SYSTEMS AND CUSTOMERS WITH EVAPORATIVE LOSS FROM COOLING TOWERS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF AUSTIN: PART 1. City Code Section 15-9-136 (Calculation of Wastewater Billing) is amended to add a requirement for the City to assess wastewater flow for onsite water reuse customers to read as follows effective November 1, 2025: § 15-9-136 - CALCULATION OF WASTEWATER BILLING. (A) The City shall calculate the wastewater invoice for a customer's service address by: (1) multiplying the volume of wastewater discharged from the service address by the wastewater rate for the applicable customer class; and (2) adding the applicable monthly customer account charge, if any, and other applicable fees and charges. (B) Except as provided by Subsections (C), [and] (D), and (E), the director of the Water Utility shall assess the volume of wastewater discharged from the customer's service address at the lower of: (1) the customer's wastewater average as determined by separate ordinance; or (2) the monthly water consumption at the service address. (C) (D) If a customer is approved for evaporative loss adjustments under Article 14 (Wastewater Billing Adjustments for Evaporative Cooling Towers), the City shall assess the volume of wastewater discharged from the customer's service address as prescribed by that article. If a customer has installed a wastewater flow metering system approved under Article 15 (Metered Wastewater Billing), the City shall assess the volume of wastewater discharged from the customer's service address as prescribed by that article. Draft 2/13/2025 Page 1 of 6 COA Law Department City of Austin Council Meeting Backup: February 27, 2025 File ID: 25-0216 (E) If a customer is approved for a wastewater flow factor under Article 16 (Wastewater Flow Factor Billing for Onsite Water Reuse Customers), the City shall assess the volume of wastewater discharged from the customer’s service address as prescribed by that article. PART 2. City Code Section 15-9-241 (Evaporative Loss Adjustment for Evaporative Cooling Towers) is amended to add a new Subsection (C) to read as follows effective November 1, 2025: (C) Qualified customers may apply for an evaporative loss adjustment to be administered under Article 16 (Wastewater Flow Factor Billing for Onsite Water Reuse Customers), subject to approval by the Director of the Water Utility. PART 3. City Code Chapter 15-9 (Utility Service Regulations) is amended to add a new Article 16 (Wastewater Flow Factor Billing for Onsite Water Reuse Customers) to read as follows effective November 1, 2025: ARTICLE 16. – WASTEWATER FLOW FACTOR BILLING FOR ONSITE WATER REUSE CUSTOMERS. Division 1. - General Provisions. § 15-9-303 - DEFINITIONS. In this article: (1) (2) DIRECTOR means the director of the Water Utility. ONSITE WATER REUSE CUSTOMER means a retail water customer that has a permit to operate an onsite water reuse system under Chapter 15-13 (Regulation of Onsite Water Reuse Systems). (3) WASTEWATER means all liquids and waterborne waste, drainage water, and sewage, whether treated or untreated, from residential dwellings, commercial buildings, or industrial or manufacturing facilities and institutions. (4) WASTEWATER METER means a wastewater flow meter or other device approved by the director for the measurement of the total volume of wastewater discharged by a customer. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Draft 2/13/2025 Page 2 of 6 COA Law Department 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 City of Austin Council Meeting Backup: February 27, 2025 § 15-9-304 - REQUIREMENTS FOR APPROVAL OF WASTEWATER FLOW FACTOR BILLING. File ID: 25-0216 (A) (B) To receive wastewater flow factor billing to assess the volume of wastewater discharged from a service address without the use of wastewater or discharge meters, a customer must meet the requirements of this section. To be eligible for wastewater flow factor billing, a customer must be a commercial, residential or industrial customer receiving water and wastewater service as a direct retail customer of the City of Austin Water and Wastewater Utility that: (1) Has an approved permit for an onsite water reuse system issued under Chapter 15-13 (Regulation of Onsite Water Reuse Systems); or (2) Is reapplying for an evaporative loss adjustment for an evaporative cooling tower that recirculates make-up water under Article 14 (Wastewater Billing Adjustments for Evaporative Cooling Towers) of this Chapter. (C) A customer seeking wastewater flow factor billing must submit a written application as prescribed by Section 15-9-30x (Application) and pay the non-refundable application fee prescribed by ordinance. (D) Customer premises whose total wastewater discharge to the City's wastewater system (meaning the discharge from all buildings, cooling towers and other installations on the site) is monitored by one or more wastewater flow meters whose installation has been separately approved by the director are not eligible to receive wastewater flow factor billing. Division 2. - Application for Wastewater Flow Factor Billing. § 15-9-305 - APPLICATION. (A) An application for wastewater flow factor billing for onsite water reuse customers is included with the water balance application materials required under Section 15-13-10 (Permit Application). (B) An application for wastewater flow factor billing for customers reapplying for an evaporative loss adjustment is included with the application materials required under Section 15-9-241 (Evaporative Loss Adjustment for Draft 2/13/2025 Page 3 of 6 COA Law Department 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 City of Austin Council Meeting Backup: February 27, 2025 File ID: 25-0216 Evaporative Cooling Towers). § 15-9-306 - REVIEW OF APPLICATION. (A) The director shall review the application. (B) The director shall approve the application if the director determines that: the applicant has paid the application fee prescribed by ordinance; it is feasible to accurately calculate the wastewater discharge at the customer service address in accordance with the requirements of this article and sound engineering, utility, and billing practices; and (3) the application complies with the requirements of this article. (C) The director shall deny the application if the director determines that: the applicant has not paid the application fee prescribed by ordinance; it is not feasible to accurately calculate the wastewater discharge at the customer service address in accordance with the requirements of this article and sound engineering, utility, and billing practices; the application fails to comply with the requirements of this article; or the application contains information that is false, inaccurate, or incomplete. (1) (2) (1) (2) (3) (4) (D) If the director denies the application, the director shall notify the applicant in writing of the denial and the reasons for the denial. § 15-9-307 - REVISED APPLICATION. (A) A customer may submit a revised application for wastewater flow factor billing if any material changes in equipment, facilities, operations, or processes that may affect wastewater metering, including changes in the quantity of discharge, flow rates, or other characteristics of the discharge occur at the customer service address. (B) The revised application must contain signed and sealed flow data and calculations from a qualified engineer licensed in Texas that Draft 2/13/2025 Page 4 of 6 COA Law Department City of Austin Council Meeting Backup: February 27, 2025 File ID: 25-0216 demonstrate the requested wastewater flow factor billing for the customer service address. (C) A customer must pay a non-refundable revised application fee prescribed by separate ordinance before the director will review the revised application. If the director denies the revised application, the director shall notify the applicant in writing of the denial and the reasons for the denial. If the director denies the revised application, the director's decision is final and the customer must submit a new revised application and fee before the director will review a request for wastewater flow factor billing for the customer service address. Division 3. - Billing. § 15-9-308 – WASTEWATER FLOW FACTOR BILLING EFFECTIVE AFTER APPROVAL. The director shall begin billing a customer for a wastewater flow factor in the first complete billing cycle after the date the director approves wastewater flow factor billing. The director may not permit or require the retroactive application of this article or the adjustment or recalculation of a customer’s wastewater bill for any billing cycle occurring before the director’s written approval of the customer's application. (D) (E) (A) (B) (C) The director shall bill all customers at the service address using a wastewater flow factor until such time a revised application is approved. § 15-9-309 – REVOCATION OF WASTEWATER FLOW FACTOR. The director shall revoke a customer’s approval for wastewater flow factor billing if a customer’s wastewater discharge is increased due to process or capacity changes at a service address that result in added cooling capacity or increased cooling tower blowdown. 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 Draft 2/13/2025 Page 5 of 6 COA Law Department City of Austin Council Meeting Backup: February 27, 2025 PART 4. The City Manager is directed to include fees reflecting these code changes in the fee ordinance adopted with the budget starting in fiscal year 2025-2026. File ID: 25-0216 PART 5. This ordinance takes effect on ________________, 2025. PASSED AND APPROVED , 2025 § § § _______________________________ Kirk Watson Mayor APPROVED: _____________________ ATTEST: _______________________ Deborah Thomas Interim City Attorney Myrna Rios City Clerk 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 Draft 2/13/2025 Page 6 of 6 COA Law Department