HomeMy WebLinkAboutResolution 2017-075 N.C.S. 05/15/2017Resolution No. 2017-075 N.C.S.
of the City of Petaluma, California
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
ADOPTING A NEW RATE SCHEDULE FOR WASTEWATER SERVICE
SUPERSEDING AND REPEALING RESOLUTION NO. 2011-166
WHEREAS, the City of Petaluma operates and maintains a wastewater collection,
treatment, disposal and recycling system; and
WHEREAS, on August 4, 2006, the City entered into a loan Agreement with the State of
California and as part of the Agreement made contractual assurances that it would adopt a
system of charges to assure reasonable recovery of costs from recipients of the service; and
WHEREAS, the City issued the 2011 Wastewater Revenue Refunding Bonds, which
impose specific debt ratio obligations; and
WHEREAS, wastewater services currently provided by the City include collection,
treatment, and discharge of treated wastewater, and treatment and distribution of recycled water
in a manner to protect the wastewater system, and use of the term "wastewater services" herein
refers to all of those services; and
WHEREAS, the City retained Bartle Wells Associates to develop a Water and Sewer
Rate Study ("Study"), which Study is approved by the City Council, and attached to and made a
part of this resolution as Exhibit A; and
WHEREAS, the Petaluma City Council conducted a public meeting on the proposed
rates pursuant to the Study on November 14, 2016, February 13, 2017 and March 20, 2017; and
WHEREAS, a notice of public hearing on the proposed wastewater rates and change in
rate structures ("Rates") was mailed to wastewater utility customers and record owners of
properties that would be impacted by the proposed increases on March 30, ,2017, 45 days or more
before the requisite public hearing, in accordance with the requirements of section 6(a)(2) of
Article XI11D ("Proposition 218") of the California Constitution, including notice of the
requirements for submitting a written protest in accordance with Proposition 218; and
Resolution No. 2017-075 N.C.S. Page 1
WHEREAS, a notice of the proposed Rates and the December 5 public hearing was
published in the Petaluma Argus -Courier on May 4, 2017; and
WHEREAS, the Petaluma City Council conducted a public hearing on the proposed
Rates on May 15, 2017, and received testimony and considered all evidence ("the Record")
presented regarding the proposed Rates; and
WHEREAS, following the public hearing conducted on May 15; 2017, the City Clerk
canvassed and reported on the number of written protests received concerning the proposed
Rates in accordance with Proposition 218, totaling 15, in comparison with the number of parcels
affected by the proposed Rates, totaling approximately 19,090; and
WHEREAS, in accordance with the canvass and report of the City Clerk, the number of
written protests received concerning the proposed Rates, totaling 15, are less than the minimum
number of parcels affected by the proposed Rates for which written protests would be required to
be submitted for a majority protest to exist that would preclude the City Council from adopting
the proposed Rates, thus confirming that a majority protest concerning the proposed Rates does
not exist; and
WHEREAS, after due consideration, the Petaluma City Council finds based on the Study
and the Record that:
1) The proposed Rates as presented herein are necessary to achieve full recovery of the
costs of providing wastewater services to residents and businesses in Petaluma;
2) The proposed Rates as presented herein will not generate revenue in excess of the
cost of providing wastewater services;
3) The proposed Rates as presented herein will not be used for purposes other than
providing wastewater services;
4) The Rates or charges imposed on any parcel or person as an incident of property
ownership shall not exceed the proportional cost of the service attributable to the
parcel;
5) The Rates are for recovery of the cost of providing services that are actually used by
and immediately available to the owners of property subject to the Rates, and are not
based on potential or future uses of services;
Resolution No. 2017-075 N.C.S. Page 2
6) The Rates are not imposed for general governmental services including, but not
limited to, police, fire, ambulance or library services;
7) Proper notice of the proposed Rates were given to record owners of properties that
would be impacted by the proposed increases, as prescribed by law; and
8) A majority of record owners of properties that would be impacted by the proposed
increases did not protest the proposed Rates; and
WHEREAS, Council has requested as part of its annual budget process to review the
current and projected wastewater (or water) rates for the next fiscal year to make sure the rates
accurately address the needs of the City and to take steps to adjust the rates if necessary.
WHEREAS, the proposed Rates are "fees" or "charges" as defined in Section 2(e) of
Proposition 218, and are levies other than an ad valorem tax, special tax or assessment, imposed
by an agency upon a parcel or upon a person as an incident of property ownership, including user
fees or charges for property related services; and
WHEREAS, the proposed Rates are not a "tax" as defined in Section 1, paragraph (e) of
Article XIII C of the California Constitution ("Proposition 26") because such rates are imposed
for a specific benefit conferred or privilege granted directly to the payor that is not provided to
those not charged, and which does not exceed the reasonable cost to the local government of
providing the service or product; and/or such fees and charges are imposed for a specific
government service or product provided directly to the payor that is not provided to those not
charged, and which does not exceed the reasonable cost to the local government of providing the
service or product; and/or such fees and charges are imposed for the reasonable regulatory costs
to a local government for issuing licenses and permits, performing investigations, inspections
and audits, enforcing agricultural marketing orders and the administrative enforcement and
adjudication thereof; and/or such fees and charges are imposed as a condition of property
development; and
WHEREAS, adoption of revised rates and charges pursuant to this resolution involves
the establishment, modification, restructuring or approval of rates and charges, as identified and
analyzed in the Study, including rates and charges to obtain funds for meeting operating
expenses, purchasing or leasing supplies, equipment or materials, meeting financial reserve
needs and requirements and/or obtaining funds for capital projects necessary to maintain service
within existing service areas. Therefore, adoption of this resolution setting rates and charges is
Resolution No. 2017-075 N.C.S. Page 3
not a project under the California Environmental Quality Act pursuant to California Public
Resources Code Section 21080(b)(8)(D) and 14 Cal. Code Regs. Section 15273.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Petaluma that the Petaluma City Council hereby adopts this resolution superseding and repealing
in its entirety Resolution 2011-166 effective July 1, 2017, as follows:
ARTICLE I
GENERAL
SECTION 1.1 PURPOSE.
(A) Findings. The above recitals are hereby declared to be true and correct and to be
findings of the City Council of the City of Petaluma and are made a part of this resolution.
(B) Revenue. The purpose of the wastewater service charge is to raise revenue for the
cost of operation and maintenance of the City of Petaluma's wastewater utility used for the
collection, treatment, disposal, and recycling of domestic wastewater, industrial wastewater,
commercial wastewater, and for payment of principal and interest on bonds and capital recovery
costs, and for collection and disposal of storm water.
(C) Resolution. The purpose of this resolution is to establish a method of sharing the
cost of the operation and maintenance of the City's wastewater utility among the users of
wastewater service.
(D) Study. This resolution and the wastewater charges established in this resolution
are based on the City of Petaluma Water and Sewer Rate Study prepared by Bartle Wells
Associates. The Study is attached to and made a part of this resolution as Exhibit A.
ARTICLE II
DEFINITIONS
SECTION 2.1 DEFINITIONS.
"Accessory Dwelling" means as specified in Article 21 of the Petaluma Zoning
Ordinance.
"BOD" means biochemical oxygen demand.
"Director" means the Director of Public Works and Utilities, or his/her designee.
"Dwelling Unit" means:
(A) Any single-family residential dwelling or mobile home designed for occupancy
by one family, each of which shall be deemed equivalent to one dwelling unit, and
Resolution No. 2017-075 N.C.S. Page 4
(B) Any duplex, triplex, fourplex, townhouse or condominium, apartment house,
lofts, mobile home park or other multi -residential establishment, designed for occupancy for
living purposes by more than one family, which is divided into separate residential units, each of
which is designed for occupancy by one family only, each resident unit shall be deemed
equivalent to one dwelling unit. For example, an apartment complex with 10 apartments shall be
considered to have 10 dwelling units.
"hcf' means hundred cubic feet. One hcf is equivalent to 748 gallons.
"Low Strength" means Non-residential User wastewater with a BOD concentration of
less than or equal to 350 mg/L and a TSS concentration of less than 300 mg/L.
"High Strength" means Non-residential User wastewater with a BOD concentration
greater than 700 mg/L and a TSS concentration of greater than 450 mg/L.
"Medium Strength" means Non-residential User wastewater that is not Low Strength or
High Strength.
"Metered Industrial Users" means a Non-residential User whose wastewater discharge is
metered and whose wastewater service charge is based on laboratory analysis of the user's
wastewater. Users placed in this category shall be as determined by the Director.
"Non-residential User" includes, but is not limited to, any commercial, industrial or
institutional customer.
"Residential User" means any single-family residential dwelling or mobile home
designed for occupancy by one family, and any duplex, triplex, fourplex, townhouse or
condominium, apartment house, mobile home park or other multi -residential establishment,
designed for occupancy for living purposes by more than one family, which is divided into
separate residential units, each of which is designed for occupancy by one family only.
"TSS" means total suspended solids.
"Unmetered Residential" means Residential Users whose potable water is provided in
part or in whole by a water source other than the City of Petaluma.
ARTICLE III
RATES
SECTION 3.1 FIXED MONTHLY FEES.
(A) Residential Users. The fixed monthly fee for Residential Users, per dwelling unit,
shall be as set forth in Table 1, as adjusted in accordance with this ARTICLE.
(B) Non-residential Users. The fixed monthly fee for Non-residential Users shall be
as set forth in Table 1, as adjusted in accordance with this ARTICLE.
Resolution No. 2017-075 N.C.S. I Page 5
Table 1. Fixed Monthly Wastewater and Wastewater Usage Charges
Resolution No. 2017-075 N.C.S. Page 6
Proposed Base Sewer Rates Effective on or After
July 1
July 1
July 1
July 1
July 1
2017
2018
2019
2020
2021
FIXED MONTHLY CHARGES*
*Fixed monthly charge billed per residential dwelling unitorbased on non-residential meter size.
RESIDENTIAL
Fixed monthly charge per dwelling unit
Single Family Residential
$23.41
$26.17
$28.81
$31.33
$33.74
Multi -Unit Residential
19.90
22.24
24.49
26.63
28.68
Unmetered Residential
86.69
87.42
88.24
88.94
89.74
NON-RESIDENTIAL
Fixed monthly charge based on meter size
Up to 3/4 -inch meter
$23.41
$26.17
$28.81
$31.33
$33.74
1 -inch meter
36.33
41.45
46.36
51.06
55.53
1-1/2 inch meter
68.45
79.52
90.13
100.29
110.00
2 -inch meter
107.09
125.26
142.69
159.37
175.37
3 -inch meter
197.29
232.06
265.39
297.32
327.91
4 -inch -meter
326.13
384.61
440.67
494.38
545.82
6 -inch meter
648.05
765.84
878.77
986.97
1,090.57
METERED INDUSTRIAL
Fixed monthly charge based on meter size
Up to 2 -inch non-magnetic meter
$293.89
$346.45
$396.84
$445.12
$491.34
Larger than 2 -inch non-magnetic meter
648.08
765.86
878.78
986.97
1,090.57
Up to 2 -inch magnetic meter
197.29
232.06
265.39
297.32
327.91
3 -inch magnetic meter
425.04
503.58
578.87
651.02
720.14
4 -inch magnetic meter
681.47
804.86
923.15
1,036.50
1,145.05
6 -inch or larger magnetic meter
1,519.78
1,724.77
1,921.15
2,109.15
2,289.05
SEWER COMMODITY CHARGES*
*Volumetric charge billed per hundred
cubic feet (hcf) of estimated sewer discharge.
RESIDENTIAL
Single Family Residential
$9.04
$8.75
$8.49
$8.23
$8.00
Multi -Unit Residential
9.04
8.75
8.49
8.23
8.00
COMMERCIAL
Billed based on metered water use
Low Strength
8.83
8.54
8.26
7.98
7.70
Medium Strength
11.04
11.12
11.20
11.28
11.34
High Strength
14.51
14.74
14.97
15.20
15.41
METERED INDUSTRIAL
Based on metered use & estimated wastewater
loadings
Flow ($/hcf)
7.13
7.00
6.87
6.75
6.62
BOD ($/I b)
0.79
0.89
0.99
1.09
1.21
SS($/Ib)
0.91
1.02
1.13
1.24
1.37
Resolution No. 2017-075 N.C.S. Page 6
(C) Fixed Monthly and Commodity (Usage) Charges Annual Increases. Beginning
July 1, 2018 and each July 1 thereafter, Base Sewer fixed and commodity charges will be
adjusted each year to account for changes in cost inflation. Each year starting July 1 Wastewater
Rates will be adjusted by the percentage change in the San Francisco -Oakland -San Jose
Consumer Price Index for All Urban Consumers (San Francisco CPI -U) from the December
2016 index to the index for the December immediately preceding the subject fiscal year (e.g.
SFU fixed charge for July 2020; $15.18 x (December 2019 CPI) / (December 2016 CPI). A
negative percentage change in CPI shall result in no change in the fixed or commodity charges.
SECTION 3.2 USER CHARGES.
(A) Residential Users. In addition to the fixed monthly fee set forth in Section 3. 1,
there shall be a user charge for Residential Users as set forth in Table 1, based on the amount of
wastewater discharged. The amount of wastewater discharged shall be established based on the
average amount of water used for the two lowest use billing months during the winter months.
The billing months used to establish the "winter average" shall generally fall within December,
January, February, March, and April, but actual winter months used for this determination may
vary depending on individual billing cycles or pattern of use, as determined by the Public Works
& Utilities Director. The "winter" average becomes effective each July based on the most recent
winter water usage. If the customer does not have sufficient history to make such determination,
then the amount of water used shall be set at a default of 5.0 hcf for Single Family Residential
Users per Dwelling Unit, and a default of 4.25 hcf for Multi -Family Residential Users per
Dwelling Unit. If water use during any billing month during the year is lower than the
established winter average, then the actual water use will be used to calculate the bill
(B) Non-residential Users. In additional to the fixed monthly fee set forth in Section
3. 1, there shall be a user charge for Non-residential Users, based on the amount of water used or
discharged, as set forth in Table 1.
(1) User Charge for Non -Residential Users with Shared Water Meters. If a
water meter is used by Non-residential Users in different customer classes, the user
charge shall be based on the Non-residential User with the higher wastewater strength.
For example, if a Low Strength user and a High Strength user use the same water meter,
the wastewater user charge shall be based on the High Strength user rate.
(2) Commercial Customers. Commercial customers shall be assessed a
variable user charge based on the strength of the wastewater. Assignment to Low,
Medium, or High strength shall be as determined by the Director, or based on laboratory
Resolution No, 2017-075 N.C.S. Page 7
analyses of the Non-residential User's wastewater. A State of California Certified
laboratory must conduct the laboratory analysis.
SECTION 3.3 SPECIAL CHARGES AND FEES.
(A) Sample Collection and Laboratory Analysis. The City shall charge for samples
collected by the City and analyzed by the City or an outside laboratory for the purpose of
determining wastewater charges. Charges shall be assessed for collecting the sample and for
laboratory analysis of the sample.
(1) Collection Charges.
(a) For the Purpose of Determining Wastewater Charges. The charge
for collecting a "grab" sample shall be $75. The charge for collecting a
"composite" sample shall be $250.
(b) For Violation Follow -Up Sampling. The charge for collecting a
"grab" sample shall be $100. The charge for collecting a composite sample shall
be $350.
(2) Laboratory Analysis Charges.
(a) Outside Laboratories. Samples analyzed by outside laboratories
shall be charged at cost per sample.
(b) City Laboratory. Samples analyzed by the City's laboratory for
conventional pollutants shall be $125 per sample.
(B) Septic Waste. Discharge of septic waste shall be charged at $0.25 per gallon of
discharge, Discharge may not occur without a permit.
(C) Short -Term Discharge. A short-term discharge fee is hereby established at the
Commercial Sewer Commodity rate in Table 1 for low, medium or high strength as appropriate,
plus a permit fee of $200.00. These fees shall apply to direct temporary discharges from a point
of discharge for which a City connection charge is inapplicable or for which connection charges
sufficient to address the temporary discharge have not been paid, including, but not limited to,
temporary discharges of groundwater. Discharge may not occur without a permit and may not
continue for more than one year from the effective date of permit. If the discharge period
continues beyond one year, discharger will be assessed applicable and then -current wastewater
service fees and may be assessed connection fees. The decision to accept any such temporary
discharge and all requirements pertaining to the acceptance of such temporary discharge shall be
based on an evaluation of the effect on capacity, compliance with regulations, and any other
factors that could affect the overall operations of the wastewater treatment facility. Such
discharges shall fully comply with all applicable federal, state and local laws, regulations and
Resolution No. 2017-075 N.C.S. Page 8
factors that could affect the overall operations of the wastewater treatment facility. Such
discharges shall fully comply with all applicable federal, state and local laws, regulations and
orders, including, but not limited to, the City's sewer use regulations as described in Chapters
15.48 through 15.76 of the Petaluma Municipal Code.
(D) Hauled Waste. Discharge of liquid waste not exceeding local limits for BOD and
TSS (as established in Petaluma Municipal Code Chapter 15.48) may be accepted at the
wastewater treatment facility. The Hauled Waste discharge fee is hereby established at the
Commercial Sewer Commodity rate in Table 1 for low, medium or high strength as appropriate,
with a $500.00 minimum fee, plus a permit fee of $200.00. These fees shall apply to liquid
wastes hauled to and discharged at the wastewater treatment facility. Discharge may not occur
without a permit and may not continue for more than one year from the effective date of permit.
If the discharge period continues beyond one year, discharger will be assessed applicable and
then -current wastewater service fees and may be assessed connection fees. The decision to
accept any such wastes and all requirements pertaining to the acceptance of such wastes shall be
based on an evaluation of the effect on capacity, compliance with regulations, and any other
factors that could affect the overall operations of the wastewater treatment facility. Such
discharges shall fully comply with all applicable federal, state and local laws, regulations and
orders, including, but not limited to, the City's sewer use regulations as described in Chapters
15.48 through 15.76 of the Petaluma Municipal Code.
(E) High Strength Waste (HSW). Discharge of liquid waste exceeding local limits
for BOD and TSS (as established in Petaluma Municipal Code Chapter 15.48) shall only be
accepted at the Ellis Creek Water Recycling Facility HSW facility. The HSW fee shall be
established based on a cost of service analysis as approved and amended from time -to -time by
the Public Works and Utilities Director. The HSW permit fee shall be $200.00. Discharge may
not occur without a permit and may not continue for more than five years from the effective date
of permit. If the discharge period continues beyond five years, discharger must reapply for a
permit. The decision to accept any such HSW discharge and all requirements pertaining to the
acceptance of such HSW discharge shall be based on an evaluation of the effect on capacity,
compliance with regulations, and any other factors that could affect the overall operations of the
wastewater treatment facility and shall be made solely by the Public Works and Utilities
Director. Such discharges shall fully comply with all applicable federal, state and local laws,
regulations and orders, including, but not limited to, the City's sewer use regulations as
described in Chapters 15.48 through 15.76 of the Petaluma Municipal Code.
Resolution No. 2017-075 N.C.S. Page 9
SECTION 3.4 RATES FOR WASTEWATER USERS OUTSIDE OF THE CITY
LIMITS.
(A) Residential Users. Residential users outside of the City limits shall be charged
$0.80 per month for each dwelling unit in addition to the charge set forth in Section 3.1.
(B) Non -Residential Users. Non-residential users outside of the City limits shall
be charged $0.80 per month for each account in additional to the charge set forth in Section 3.1.
ARTICLE IV
SEVERABILITY
SECTION 7.1 Severability. If any provision of this resolution or the application thereof to any
person or circumstance is held invalid, the remainder of the resolution, including the application
of such part or provision to other persons or circumstances shall not be affected thereby and shall
continue in full force and effect. To this end, provisions of this resolution are severable. The
City Council hereby declares that it would have passed each section, subsection, subdivision,
paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more
sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held
unconstitutional, invalid, or unenforceable.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 15`h day of May, 2017,
by the following vote:
Ci Attorney
AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
szzo.A�
City Clerk Pro Tem
ayor
Resolution No. 2017-075 N.C.S. Page 10