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Home My WebLink About2016-19 CC Reso - Adopting Water Service Rate Adjustments for 5-Year Period FY 2016-20201 1 1 RESOLUTION NO. 2016- 19 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING WATER SERVICE RATE ADJUSTMENTS FOR FIVE YEAR PERIOD FY 2016 -2020 WHEREAS: 1. The City of Ukiah operates and maintains a water processing and distribution system ( "Water System "); and 2. The report entitled City of Ukiah Water Rate Study, presented to the City Council on February 17, 2016 presents a comprehensive analysis of the water utility's rate structure and proposed water rate increases; and 3. The City Council considered the proposed increases at a regular meeting on February 17, 2016, and authorized staff to provide notice and schedule a public hearing on the proposed rate increase in accordance with the procedures contained in Article XIIID, Section 6 of the California Constitution and Ukiah City Code Sections 3950 -3957; and 4. Written notice of the amount of the fee or charge proposed to be imposed, the basis upon which the amount of the proposed fee or charge was calculated, the reason for the fee or charge, and the date, time, and location of a public hearing on the proposed fee or charge was mailed to the record owner of each parcel in the City of Ukiah and all customers of the City's water system not less than 45 days in advance of the hearing on the proposed changes; and 5. The Water Rate Study, together with the staff report of February 17, 2016, provided the City Manager's Report as provided in Ukiah City Code Section 3952; and 6. Notice that the Water Rate Study is available for review will be published in the Ukiah Daily Journal not less than 10 days prior to a hearing on the proposed rate increase to be held as required by Ukiah City Code Section 3955; and 7. The published notice will contain all of the information required by Ukiah City Code Section 3954; and 8. On April 20, 2016, the City Council conducted a public hearing in accordance with Article 13.D. §6 of the California Constitution concerning the proposed rates, and heard and considered public comment on the proposed rates; and 9. The City Council did not receive at or prior to the hearing on April 20, 2016, written protests from a majority of the owners of the parcels receiving water services in the City of Ukiah; and 10. On May 4, 2016, the City Council will conduct a further hearing as required by Ukiah City Code Section 3955; and 11. The City Council has determined that the proposed rates comply with the requirements in Article XIII.D, §6 of the California Constitution. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah hereby adopts the Water Rate Schedule, as set forth in Table 1, and the Temporary Water Shortage Rate Surcharges Schedule in Table 2, attached hereto and made part of this resolution, subject to final consideration thereof at a hearing on May 4, 2016. The Temporary Water Shortage Rate Surcharges Page 1 of 4 1 1 1 shall only become effective during a declared water shortage emergency, the conditions and duration of which shall be included in a resolution adopted by the City Council declaring said emergency. BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be effective on May 5, 2016, unless otherwise ordered by the City Council on May 4, 2016, and included on billings issued on or after June 1, 2016. All prior rate schedules in conflict herewith are repealed upon the effective date of the new schedule. All other contract conditions for service remain unaltered and in full effect and the City Clerk shall cause the publication of this resolution in the Ukiah Daily Journal within 10 days following Council action on May 4, 2016, pursuant to the provisions of Section 3957 of the Ukiah City Code. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 20th day of April 2016, by the following roll call vote: AYES: Councilmembers Crane, Mulheren, Doble, Brown, and Mayor Scalmanini NOES: None ABSENT: None ABSTAIN:None ATTEST: Ashley Cocco, Deputy City Clerk lid ar, Ael -c G Stephen G. Scalmanini, Mayor 1 1 1 Table 1: City of Ukiah Water Utility - Monthly Service Charge Exhibit III -3 City of Ukiah Current and Proposed Water Rates June January January January January Current(1) 2016 2017 2018 2019 2020 Water Usage Rate ($ /CCF) All Water Usage $ 2.73 $ 2.86 $ 2.95 $ 3.04 $ 3.13 $ 3.22 Monthly Service Charge 3/4" meter $ 32.25 $ 33.63 $ 34.64 $ 35.68 $ 36.75 $ 37.85 1" meter $ 54.81 $ 54.00 $ 55.62 $ 57.29 $ 59.01 $ 60.78 1 1/2" meter $ 106.40 $ 104.47 $ 107.60 $ 110.83 $ 114.15 $ 117.57 2" meter $ 170.88 $ 165.27 $ 170.23 $ 175.34 $ 180.60 $ 186.02 3" meter $ 322.41 $ 307.24 $ 316.46 $ 325.95 $ 335.73 $ 345.80 4" meter $ 538.45 $ 510.02 $ 525.32 $ 541.08 $ 557.31 $ 574.03 6" meter $ 1,073.66 $ 1,016.50 $ 1,047.00 $ 1,078.41 $ 1,110.76 $1,144.08 Monthly Fire Service Charges Up to 2" meter $ 34.18 $ 36.07 $ 37.15 $ 38.26 $ 39.41 $ 40.59 3" meter $ 64.48 $ 64.84 $ 66.79 $ 68.79 $ 70.85 $ 72.98 4" meter $ 107.69 $ 105.93 $ 109.11 $ 112.38 $ 115.75 $ 119.22 6" meter $ 214.72 $ 208.56 $ 214.82 $ 221.26 $ 227.90 $ 234.74 8" meter $ 214.72 $ 331.77 $ 341.72 $ 351.97 $ 362.53 $ 373.41 Notes: (1) Effective July 1, 2014. The purpose of the water rates is to raise revenue for the cost of providing water and water service. Cost of service includes the cost of operation and maintenance of the City of Ukiah water utility used for the collection, processing and distribution of water and payment of principle and interest on debt used to finance capital projects. The purpose of this resolution is to establish a method of sharing the cost of service among the users of the water system for all areas served by the City of Ukiah Water Utility Monthly service charges are a readiness -to -serve fee and apply to all accounts regardless of consumption. Each unit of consumption will be billed at the consumption rate. Monthly service charges are proportional to meter size with rates increasing across meter size in proportion to the capacity demand guidelines published by the American Water Works Association. (Note: The monthly service charge for fire service meters reflects the estimated cost to maintain fire service connections, monitor water usage, and service the accounts.) Consumption charges are applied to all water consumed as recorded by the water meter. Water is sold in units of hundred cubic feet (hcf) which is 748 gallons. 1 Table 2 City of Ukiah Proposed Temporary Water Shortage Rate Surcharges Applied to Water Rates for June 2016 (1) Normal Supply (1) Minor Shortage Moderate Shortage Critical Shortage Health & Safety Per Capita Limit Use Reduction Goal - -> None Wtr. Short. Surch. (2) - -> None Water Usage Rate ($ /CCF) All Water Usage $ 2.86 $ 10% to 20% Monthly Service Charge 3/4" meter 1" meter 1 1/2" meter 2" meter 3" meter 4" meter 6" meter $ 33.63 $ 54.00 $ 104.47 $ 165.27 $ 307.24 $ 510.02 $ 1,016.50 None 20% to 35% 15% 35% to 50% 25% > 50% 35% 2.86 $ 3.29 $ 3.58 $ 3.86 No changes to service charges $ 33.63 $ 33.63 $ 54.00 $ 54.00 $ 104.47 $ 104.47 $ 165.27 $ 165.27 $ 307.24 $ 307.24 $ 510.02 $ 510.02 $ 1,016.50 $ 1,016.50 during shortages $ 33.63 $ 54.00 $ 104.47 $ 165.27 $ 307.24 $ 510.02 $ 1,016.50 $ 33.63 $ 54.00 $ 104.47 $ 165.27 $ 307.24 $ 510.02 $ 1,016.50 Notes: (1) The water shortage rate surcharge percentages are shown applied to proposed water rates for June 2016 for illustrative purposes. The percentages would be applied to any then - current water usage rates when implemented by declaration of a water shortage. (2) The temporary water shortage rate surchargse would be an incremental (percentage) increase in the water usage rates, but would not be applied to monthly service charges. 1 1