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Home My WebLink AboutCC Reso 2020-45 - Adopting Water Service Rate Adjustments RESOLUTION NO. 2020-45 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING WATER SERVICE RATE ADJUSTMENTS FOR FIVE YEAR PERIOD FY 2020-2024 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 June 17, 2020 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 June 17, 2020, 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, Government Code Sections 53150-53758 and Ukiah City Code Sections 3951; 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. On August 19, 2020, the City Council conducted a public hearing in accordance with Article 13.D. §6 of the California Constitution and Government Code Section 53753 concerning the proposed rates, and heard and considered public comment on the proposed rates; and 6. The City Council did not receive at or prior to the hearing on August 19, 2020, written protests from a majority of the owners of the parcels receiving water services in the City of Ukiah; and 7. 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 attached hereto and made part of this resolution, subject to final consideration thereof at the hearing conducted on August 19, 2020, the adopted version of which is attached hereto as Exhibit A and incorporated herein by this reference. BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be effective on October 1, 2020 and included on billings issued on or after November 1, 2020. The previously adopted Temporary Water Shortage Rate Surcharges shall remain and only become effective in the event of 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. Other 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. Page 1 of 4 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 19th day of August, 2020, by the following roll call vote: AYES: Councilmembers Mulheren, Brown, Scalmanini, Orozco and Mayor Crane NOES: None ABSENT: None ABSTAIN: None Douglas Fk rane, Mayor ATTEST Kristine Lawler, City Clerk EXHIBIT A Tables 1 and 2 Table 1: City of Ukiah Water Utility- Monthly Service Charge Current (1) Oct. 2020 July 2021 July 2022 July 2023 July 2024 Water Usage Rate ($/CCF) All Water Usage $ 3.22 $ 3.26 $ 3.48 $ 3.72 $ 3.98 $ 4.18 Monthly Service Charge 3/4" meter $ 37.85 $ 39.88 $ 42.67 $ 45.66 $ 48.86 $ 51.30 1" meter $ 60.78 $ 63.87 $ 68.34 $ 73.12 $ 78.24 $ 82.15 1 1/2" meter $ 117.57 $ 123.31 $ 131.94 $ 141.18 $ 151.06 $ 158.61 2" meter $ 186.02 $ 194.92 $ 208.56 $ 223.16 $ 238.78 $ 250.72 3" meter $ 345.80 $ 362.14 $ 387.49 $ 414.61 $ 443.63 $ 465.81 4" meter $ 574.03 $ 600.97 $ 643.04 $ 688.05 $ 736.21 $ 773.02 6" meter $ 1,144.08 $ 1,197.51 $ 1,281.34 $ 1,371.03 $ 1,467.00 $ 1,540.35 Notes• (1) Effective January 1, 2020. 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. Table 2: City of Ukiah Water Utility—Water Shortage Rate Surcharges Table 2 City of Ukiah Prolposed Temporary Water Shortage Rate Surcharges Applied to Water Rates for June 2016 (1) Health, & Normal Minor Moderate Critical Safety Per supply (1) Shortage Shortage Shortage Capita Limit Use Reduction Goal None 10% to 20% 20% to 35% 35% to 50% > 50% Wtr. Short. Surch., (2) None None 15% 25% 35,% Water Usage Rate ($ICCF) All Water Usage $ 2,86 $ 2.86 $ 3,29 $ 3,58 $ 3.86 Monthly Service Charge No changes to service charges duiring shortages 3/4" meter $ 33.63 $ 33.63 $ 33.63 $ 33.63 $ 33.63 I" meter $ 54.00 $ 54.00 $ 54.00 $ 54.010 $ 54.00 1 1/2" meter $ 104.47 $ 104.47 $ 104.47 $ 104.47 $ 104.47 2" meter $ 165.27 $ 165.27 $ 165.27 $ 165.27 $ 165.27 3" meter $ 307.24 $ 307.24 $ 307.24 $ 307.24 $ 307.24 4" meter $ 510M $ 510M $ 510.02 $ 510.02 $ 510.02 6" meter $ 1,01&50 $ 1,01&50 $ 1,016.50 $ 1,016.50 $ 1,016.50 Notes: (1) The water shortage rate surcharge percentages are shown applied to proposed water rates for June 2016 for illiustrative 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 incrementall (percentage) increase in the water usage rates, but would not be applied to monthly service charges.