TOWN OF VIEW ROYAL COUNCIL REPORT: Sewer Rates for Mobile Home Parks
Analysis comparing sewer user charges between mobile home parks (Fort Victoria RV Park) and multi-family residential properties.
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Council
DATE: May 30, 2018
FROM: Dawn Christenson, Director of Finance
MEETING DATE: June 5, 2018
Sewer Rates for Mobile Home Parks
RECOMMENDATION:
THAT the report on sewer rates for mobile home parks dated May 30, 2018 from the Director of Finance be received for information.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT
To provide information regarding sewer rates for mobile home parks in comparison with another multi-family residential property.
BACKGROUND
At its October 4, 2016 meeting, Council directed
- MOVED BY: Councillor Rogers
- SECONDED: Councillor Mattson
- C-89-16 THAT staff prepare a report regarding the sewer user charge equivalency in the “Mobile home/recreational vehicle park” category.
- CARRIED
The fee schedule for annual sewer user charges as set out in Bylaw 958 assesses a space for a single mobile home or recreational vehicle within a mobile home park at 0.8 single-family dwelling unit equivalents for calculating the annual base sewer user charge. This fee forms the minimum amount charged to recover the cost of providing sanitary sewer collection and disposal for connected users in View Royal. To the base charge is added the annual consumption sewer user charge which is a volumetric rate multiplied by the per cubic meter water usage from the immediately preceding October to April period. The volumetric rate is the same for all classes of users connected to the system.
DISCUSSION
The comparison of sewer user charges per Bylaw 958 between a multi-family residential property (Christie Point Apartments 2861 Craigowan Rd) and a mobile home park such as Fort Victoria RV Park (340 Island Highway and 127 Burnett Road) is as follows:
| Mobile Home Park (Fort Victoria RV Park) | Units | Rate | Amount |
|---|---|---|---|
| Mobile home/recreational vehicle park spaces | 381 | $16.38 | $6,239 |
| Apartments | 5 | 20.47 | 102 |
| Ancillary facilities | 3 | 20.47 | 61 |
| Commercial laundromats-each washing machine (Base rate at 2 x $20.47) | 24 | 40.94 | 983 |
| Water consumption October 2016 – April 2017 | 15,097 | 1.54 | 23,250 |
| Total sewer user charge | $30,635 | ||
| Effective charge per unit (389 units) | $78.75 | ||
| Water consumption per unit (389 units) | 38.81 m3 |
| Multi-family Residential (Christie Point Apartments) | Units | Rate | Amount |
|---|---|---|---|
| Multi-family apartment rental units | 161 | $20.47 | $3,296 |
| Water consumption October 2016 – April 2017 | 11,092 | 1.54 | 17,082 |
| Total sewer user charge | $20,378 | ||
| Effective charge per unit (161 units) | $126.57 | ||
| Water consumption per unit (161 units) | 68.89 m3 |
The mobile home/recreational vehicle park spaces include a mix of vacant, temporary and permanent occupations, which may help to explain why the RV Park’s water consumption is almost half (56%) of the multi-family residential property’s consumption on a per unit basis. If the RV Park had the same per unit water consumption as the multi-family property, the effective charge would be $125.08 per unit.
The base rate applies to each space in the RV Park regardless of its use at any given point in time. There are 87 additional spaces used for storage not connected to the sewer system that are not included in the calculation of the annual base sewer user charge or the effective charge per unit.
One likely explanation for the lower effective charge per unit for the mobile home park is the seasonal nature of recreational vehicle occupation versus the full-time residency of a rental apartment. Other variables include the level and extent of irrigation, total number of laundry, shower and toilet facilities, and number of occupants per unit.
Conclusion
While an RV Park like Fort Victoria has a significantly lower effective charge per unit for sewer fees compared to a multi-family residential property, the primary underlying factor in this case is the difference in water consumption on which the volumetric consumption sewer user charge is based. By design, a charge that varies with a measure of consumption more fairly distributes costs than a static per unit fee that ignores the individual burden each unit places on the service.
RECOMMENDATION:
THAT the report on sewer rates for mobile home parks dated May 30, 2018 from the Director of Finance be received for information.
SUBMITTED BY: Dawn Christenson, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
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