HomeMy WebLinkAboutResolution 2020-100 N.C.S. 06/16/2020Resolution No. 2020-100 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA,
CALIFORNIA, SUSPENDING FISCAL YEAR 2021 CONSUMER PRICE
INDEX (CPI) FEE INCREASES FOR WATER AND WASTEWATER
UTILITY FEES FROM JULY 1, 2020 UNTIL DECEMBER 31, 2020
WHEREAS, the City Council of the City of Petaluma ("City) has previously established
fees and charges for City services, with the intent of recovering up to the City's estimated costs
to provide such services; and
WHEREAS, previously adopted fees and charges for City services include an annual
adjustment factor to be applied by the City Manager on July 1St of every year by the percentage
change in the Consumer Price Index — All Items Index (San Francisco -Oakland -San Jose); and
WHEREAS, the COVID-19 pandemic has caused significant stress on the community
resulting in a rise in unemployment countywide, business closures, limited ability to operate, and
layoffs of employees; and
WHEREAS, Petaluma recognizes the serious financial impacts that will be realized
throughout the community resulting from the pandemic and values all in the community
including the business community and the contributions it makes to the City's tax base, vitality,
and local employment opportunities; and
WHEREAS, in an effort to address the need during these unprecedented times, Petaluma
has identified an opportunity to provide savings for customers of City services by suspending
CPI fee adjustments for 6 months from July 1, 2020 until December 31, 2020 of the fiscal year,
adjustments that typically go into effect annually on July 1St; and
WHEREAS, while such savings may be minimal, they provide a reprieve from cost
increases that would have otherwise occurred in the midst of very trying times; and
WHEREAS, Petaluma will recognize reduced revenues in various City funds resulting
from a suspension of CPI adjustments; and
Resolution No. 2020-100 N.C.S. Page 1
WHEREAS, staff have analyzed the ability of all funds to accommodate such a
suspension and based on that fund analysis all have sufficient cash flow to fund ongoing
operations; and
WHEREAS, the majority of funds will continue to maintain fund reserves that are either
at the level designated by Council Policy or at a level considered a best practice by the
Governmental Accounting Standards Board (GASB); and
WHEREAS, to address those fund reserves that are below the target level, actions that
include delaying a capital purchase or project can be taken to minimize the overall impact to
fund reserves, and
WHEREAS, staff is proposing suspension of CPI adjustments for Water and Wastewater
utility fees from July 1, 2020 until December 31, 2020; and
WHEREAS, the actions under consideration to suspend for a time CPI adjustments for
some or all of the City's fees are statutorily exempt from the requirements of the California
Environmental Quality Act ("CEQA") pursuant to Section 15273 of the CEQA Guidelines as the
modification of rates and other charges by public agencies which the public agency finds are for
the purpose of meeting operating expenses, and obtaining funds for capital projects necessary to
maintain service within existing service areas, because the temporary suspension of CPI
adjustments to City fees being considered by the City Council would provide temporary relief for
City fee payors while maintaining reserves at a level consistent with Council policy and
Government Accounting Board ("GASB") best practices;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. Recitals Made Findings. The above recitals are hereby declared to be true and
correct and are incorporated into this resolution as findings of the City Council.
2. Suspension of CPI Adjustments Exempt from CEQA. Suspension for a time
of CPI adjustments for some or all of the City's fees is statutorily exempt from the
requirements of the California Environmental Quality Act ("CEQA") pursuant to Section
15273 of the CEQA Guidelines as the modification of rates and other charges by public
agencies which the public agency finds are for the purpose of meeting operating
Resolution No. 2020-100 N.C.S. Page 2
expenses, and obtaining funds for capital projects necessary to maintain service within
existing service areas.
3. Suspension of CPI Adjustments Authorized. The City Manager is hereby
authorized to suspend the Consumer Price Index Fee Increase scheduled to take effect on
July 1St, 2020 for the period of July 1, 2020 until December 31, 2020 for Water and
Wastewater utility fees and that otherwise would take effect pursuant to Section 3.1 of
Resolutions 2017-075 N.C.S. and 2017-076 N.C.S.
4. Severability. The City Council hereby declares that every section, paragraph,
sentence, clause, and phrase of this resolution is severable. If any section, paragraph,
sentence, clause or phrase of this resolution is for any reason found to be invalid or
unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or
constitutionality of the remaining sections, paragraphs, sentences, clauses, or phrases.
5. Resolution Effective Immediately. This Resolution shall take effect immediately
upon its adoption.
6. Expiration. This resolution will expire and cease to be of force and effect
effective July 1, 2021. The authorization pursuant to this resolution to suspend CPI
adjustments shall cease and CPI adjustments shall resume at that time without further
action by the City Council.
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 o
Council of the City of Petaluma at a Regular meeting on the 15th day of June 2020, fo
by the following vote:
City Attorney
AYES: Mayor Barrett; Vice Mayor Fischer; Healy; Kearney; King; McDonnell; Miller
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk 4f Mayor
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