HomeMy WebLinkAboutResolution 2017-076 N.C.S. 05/15/2017Resolution No. 2017 -076 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 WATER SERVICE AND SUPERSEDING
AND REPEALING RESOLUTION NO. 2011-165
WHEREAS, Petaluma Municipal Code Title 15 provides for the establishment and
operation of a water system and the charging of certain fees and charges; and
WHEREAS, Chapter 15.16 of Title 15 provides for the setting of certain fees and
charges by resolution; and
WHEREAS, water services provided by the City include, but are not limited to,
pumping, storage, and distribution of water purchased from the Sonoma County Water Agency
( "SCWA ") and from groundwater; 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 public meetings 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 water rates and change in rate
structures ( "Rates ") was mailed to water 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 XIIID
( "Proposition 218 ") of the California Constitution, including notice of the requirements for
submitting a written protest in accordance with Proposition 218; and
WHEREAS, a notice of the proposed Rates and the May 15 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 19,741; and
Resolution No. 2017 -076 N.C.S. Page 1
WHEREAS, in accordance with the canvass and report of the City Clerk, the number of
written protests received concerning the proposed Rates, totaling 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 in accordance with
Section 6(b) of Proposition 218 and 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 water 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 water services;
(3) The proposed Rates as presented herein will not be used for purposes other than providing
water 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 or person;
(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;
(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 Rates did
not protest the proposed Rates; and
WHEREAS, Council has requested as part of its annual budget process to review the
current and projected 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
Resolution No. 2017 -076 N.C.S. Page 2
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
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 adopt this resolution superseding and repealing
in its entirety Resolution 2011 -165 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 water service charge is to raise revenue for the cost of
operation and maintenance of the City of Petaluma's water utility used for the distribution,
pumping and storage of water and for payment of principal and interest on bonds and capital
recovery costs.
(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 water utility among the users of water
service.
(D) Study. This resolution and the water charges established in this resolution are based
on the 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
RATES
SECTION 2.1 WATER SERVICE CHARGE.
(A) Potable Water. The monthly service charge for potable water shall be as set forth
in Table 1, as adjusted in accordance with this Article.
Resolution No. 2017 -076 N.C.S. Page 3
Table 1. Monthly Water Service and Commodity (Usage) Charges
Proposed Base Water 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 unit or based on non - residential
meter size.
RESIDENTIAL
Fixed charge per residential dwelling unit.
Single Family: Up to 1" Meter
$9.57
$11.52
$13.39
$15.18
$16.88
Multi- Family: Per Dwelling Unit
$5.74
$6.91
$8.03
$9.11
$10.13
ALL OTHER USERS
Fixed charge based on water meter size.
Up to 3/4 -inch meter
$9.57
$11.52
$13.39
$15.18
$16.88
1 -inch meter
$14.40
$17.70
$20.86
$23.89
$26.80
1 -1/2 inch meter
$26.46
$33.15
$39.56
$45.71
$51.61
2 -inch meter
$40.98
$51.73
$62.03
$71.92
$81.37
3 -inch meter
$74.83
$95.04
$114.43
$133.02
$150.83
4 -inch meter
$123.20
$156.93
$189.29
$220.32
$250.05
6 -inch meter
$244.06
$311.61
$376.41
$438.56
$498.10
WATER COMMODITY CHARGES
Volumetric charge billed per hundred cubic feet (hcJ) of metered water use.
SINGLE FAMILY
RESIDENTIAL
Proposed
Rate Tier Tiers
Tier 1 0 - 4.00 hcf
$3.52
$3.52
$3.52
$3.52
$3.52
4.01 -8.00
Tier hcf
$3.95
$3.95
$3.95
$3.95
$3.95
8.01 - 16.00
Tier 3 hcf
$4.50
$4.52
$4.53
$4.54
$4.56
Tier 4 16.01+ hcf
$5.35
$5.37
$5.39
$5.40
$5.40
ALL OTHER USERS
All Other Users, non - temporary
$3.95
$3.95
$3.95
$3.95
$3.95
Temporary Service & Water Haulers
$6.07
$6.07
$6.07
$6.07
$6.07
(B) Fixed Monthly and Commodity (Usage) Charge Increases Due to CPI. Beginning
July 1, 2018 and each July 1 thereafter, the Base Water Rates shown in Table 1 will be adjusted
each year to account for annual pass - throughs for 1) cost inflation and 2) wholesale water rate
increases adopted by Sonoma County Water Agency (SCWA). Each fiscal year the Base 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
Resolution No, 2017 -076 N.C.S. Page 4
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 rate structure for CPI.
(C) Monthly Usage Charge Annual Pass Through Increase.
Beginning July 1, 2018 and each July 1 thereafter, or whenever the SCWA implements new
water rates applicable to the City, water usage charges shall be adjusted based on the changes to
wholesale water purchase costs from SCWA. After making the adjustments addressed by
paragraph B above, the Water Commodity Charges will be adjusted by the increase in the
wholesale water rate per hcf charged to the City of Petaluma for water supply.
SECTION 2.2 RECYCLED WATER COMMODITY CHARGES. The commodity
charge for recycled water use shall be 50% of the All Other Users, Non - temporary rate shown in
Table 1, as adjusted in accordance with Section 2.1 unless otherwise determined by individual
recycled water delivery contract.
SECTION 2.3 PRIVATE FIRE PROTECTIO
(A) Private Fire Protection Services. For services used exclusively for fire protection,
including sprinklers, private hydrants and other fire lines, the service charge shall be as follows:
Table 4. Private Fire Protection Service Charge
CONNECTION SIZE (INCHES)
MONTHLY SERVICE CHARGE
1 V2
$4.72
2
$6.82
3
$10.16
4
$13.58
6
$20.33
8
$27.15
(B) Water Consumed for Fire Protection. In addition, all water consumed for private
fire hydrant testing or fire suppression or other uses shall be charged to the property owner at the
All Other Users, Non - temporary commodity rate in Table 1, as adjusted in accordance with
Section 2.1.
ARTICLE III
OTHER CHARGES
SECTION 3.1 DELINQUENCY AND SERVICE RESTORATION CHARGES.
(A) Delinquency Charges, If payment is not received within thirty (30) days of the
billing date, it is considered delinquent, and a late charge of $10 will be levied.
Resolution No. 2017 -076 N.C.S. Page 5
(B) Restoration Charges. When service is discontinued because of delinquency in
payment of water bill, the service shall not be restored until all charges, including a restoration
charge, have been paid.
(1) Restoration Charge During Normal Working Hours (8:00 AM — 4:30 PM,
Monday through Friday, excepting City holidays). The restoration charge applicable for
work requested to be performed during normal working hours of the Public Works and
Utilities Department will be $40.
(2) Restoration Charge After Normal Working Hours. The restoration charge
applicable for work- requested to be performed after normal working hours will be $60.
SECTION 3.2 CHARGE FOR RETURNED CHECKS/NON- SUFFICIENT FUNDS
(NSF) FEES. A fee of $25 shall be charged for the receipt of a check or ACH payment drawn on
a closed bank account and bank accounts with insufficient funds to cover the amount of the
check or ACH payment, whether deliberate or not. This fee also applies when a stop payment has
been requested by the issuer of check, credit card, or ACH payment.
SECTION 3.3 SERVICE CHARGE FOR NEW ACCOUNTS. A charge of $15.00 shall
be paid for reading the meter or turning on service for new accounts during normal working
hours. A charge of $60 shall be paid for reading the meter or turning on service for new accounts
after normal working hours.
SECTION 3.4 TEMPORARY WATER SERVICE CONNECTION. Wherever feasible,
recycled water shall be used for construction uses, including water hauled for other non - potable
purposes. This section also applies to water haulers that fill from City fire hydrants or other City
fill stations into vehicles and deliver the water within or outside of the City service area.
(A) Meter Deposit. Deposits are required at the time of application. Lost meters will
result in forfeiture of deposit. The deposit may be applied to the closing bill and any remaining
amount refunded to the customer.
(1) 1" or Smaller Service Meter. A deposit of $200 shall be required for a 1-
inch or smaller service meter set at curb stop.
(2) Bridge Meter. Bridge meters are used to "bridge" from the City's water
system to a project's water system for the purpose of testing buried water infrastructure
and for providing site water. A deposit of $1,000 shall be required for a bridge meter.
(3) Fire Hydrant Meter. A deposit of $1,000 shall be required for a fire
hydrant meter.
(B) Service Charges.
(1) 1" or Smaller Service Meter. A $1.00 per day service charge shall be
applied for water service, irrespective of the quantity used.
(2) Bridge Meter, Hydrant Meter or Water Hauler Meter. A $4.00 per day
service charge shall be applied for water service, irrespective of the quantity used.
(C) Commodity Charge. The water commodity charge for either potable or recycled
water shall be the Temporary Service and Water Haulers Commodity Rate in Table 1, as
Resolution No. 2017 -076 N.C.S. Page 6
adjusted in accordance with Section 2.1. The recycled water commodity charge addressed in
Section 2.2, shall not apply to connections addressed under this section including water haulers.
(D) Fees. Fees associated with temporary City meters are shown below.
DESCRIPTION
FEE
FIRST TIME METER SET
$65
UNABLE TO SET /TEST METER
$50
RELOCATE METER
$85
RUSH METER SET/RELOCATE (IF SET/RELOCATE REQUEST IS
WITHIN 24 HOURS OF PERMIT ISSUANCE OR RELOCATION REQUEST)
$150
ARTICLE IV
CITY PROVIDED SERVICES
SECTION 4.1 CITY PROVIDED SERVICES.
(A) Hot Taps. Hot tap fees shall be paid prior to service. Hot taps will be charged as follows:
SIZE OF HOT TAP INCHES
HOT TAP FEE
%-2
$400
4-6
$600
8
$700
10-12
$950
(B) Other Services. The City may install domestic or fire services, or provide other
related services, upon request. The cost for each service will be based on an estimate prepared by
the City. The requestor will provide a written request accompanied by a drawing to show the
location of the proposed service. The City will provide an estimate to the requestor. When the
check for the service is received from the requestor the work order will be forwarded to City
crews for installation and coordination. Final costs will be based on actual time and materials
costs plus applicable administrative charges.
ARTICLE V
PENALTY CHARGES
SECTION 5.1 TAMPERING WITH CITY METERS. The charge for tampering with
City meters or operating a meter valve is $500 for each occurrence.
SECTION 5.2 ILLEGAL OR UNAUTHORIZED USE OF FIRE HYDRANT. The fee
for any illegal or unauthorized use of a City hydrant shall be $1,000 for each occurrence plus $50
for each additional day that such use occurs.
ARTICLE VI
SECURITY DEPOSITS
Resolution No. 2017 -076 N.C.S. Page 7
SECTION 6.1 AMOUNT. The City may impose a security deposit of $200 to open an
account or for instances of delinquent payments.
SECTION 6.2 APPLICATION OF DEPOSIT. The City may apply the security deposit
to an account owing to the City, which is delinquent for more than thirty days.
SECTION 6.3 REFUND. Any amounts remaining in the security deposit will be
returned to the customer without interest upon termination of the service and payment of all
charges, fees and indebtedness owed to the City by the customer.
ARTICLE VII
ADJUSTMENT OF BILLS
SECTION 7.1 GENERAL. The City may, upon written request of a customer, supported
by repair bills or other appropriate documentation, adjust such customer's bill in the case of loss
of water due to circumstances beyond the reasonable control of such customer, such as
mechanical malfunction, blind leak, theft of water, vandalism, unexplained water loss or other
unusual or emergency conditions. A determination of whether an adjustment is granted shall be
made at the sole discretion of the City. In making the determination, the City may take into
account the cause of water loss, the customer's opportunity, if any, to detect it, any negligence or
fault of the customer in connection therewith, and the promptness with which the water loss was
discovered, stopped and repairs made.
SECTION 7.2 WATER BILL ADJUSTMENT. The customer's adjusted bill shall be
calculated as follows.
(A) Average Usage. The "average usage" shall equal the average used during the
same period in the previous one or two years, whichever is available. If the applicant has not
been a customer for a sufficient length of time to make such determination, then the amount of
water used shall be at the discretion of the City.
(B) Excess Usage. From the total water consumption shown on the bill submitted for
correction, the "average usage" will be deducted. The resulting amount is the "excess usage."
(C) Applicable Rates.
(1) Single Family Residential Customers. The billing adjustment is calculated
at 50% of the "excess usage" multiplied times the Tier 2 rate shown on the bill submitted
for correction.
(2) Multi- Family Residential and Non - Residential Customers. The billing
adjustment is calculated at 50% of the "excess usage" multiplied times the regular water
consumption rate shown on the bill submitted for correction.
(D) Limitations. Water loss adjustments will be limited to two billing periods, and
will also be limited to one adjustment every thirty -six months. The thirty -six month period
begins the first month of the billing period following the last billing period for which the water
loss adjustment was prepared. The adjustment request must be received within 90 days of the
date of the water bill with excessive use. No adjustments will be made to bills more than two
billing periods after the billing period with excessive use.
Resolution No. 2017 -076 N.C.S. Page 8
(E) Adjustments Under $25. No adjustments shall be made for an amount less than
twenty -five dollars ($25).
SECTION 7.3 WASTEWATER BILL ADJUSTMENT. This section addresses adjustments to
wastewater bills due to a water leak.
(A) Single Family Residential and Multi - Family Residential Customers. The
"average usage" or the wastewater winter average (whichever is lower) will be deducted from
the wastewater consumption shown on the bill submitted for correction. The result is excess
wastewater usage. The billing adjustment is calculated at 100% of the excess wastewater usage
multiplied by the wastewater consumption rate shown on the bill submitted for correction.
(B) Non - Residential Customers. The billing adjustment is calculated at 50% of the
"excess usage" multiplied times the wastewater consumption rate shown on the bill submitted for
correction.
(C) Adjustments Under $25. No adjustments shall be made for an amount less than
twenty -five dollars ($25).
(D) Wastewater Winter Average Calculation. If "excess usage" inflates the system
calculated wastewater winter average, this calculated wastewater winter average will be replaced
with the previous year's winter average. If the customer has not established a wastewater winter
average for the previous year, the winter average amount shall be as determined by the City.
ARTICLE VIII
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 oved as to
Council of the City of Petaluma at a Regular meeting on the 15`h day of May, 2017, form:
by the following vote: !11
ity Attorn y
AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
City Clerk Pro Tem
6,_
Mayor
Resolution No. 2017 -076 N.C.S. Page 9