HomeMy WebLinkAboutResolution 2023-129 N.C.S. 08/07/2023 DocuSign Envelope ID:7845F82C-89DE-41AC-A2E4-71F03DFD9BD5
Resolution No. 2023-129 N.C.S.
of the City of Petaluma, California
ADOPTING A NEW RATE SCHEDULE FOR WASTEWATER SERVICE REPEALING AND
REPLACING RESOLUTION 2017-075 N.C.S.
WHEREAS, the City of Petaluma operates and maintains a wastewater collection, treatment, disposal, and
recycling system; and
WHEREAS,wastewater services currently provided by the City include collection,treatment, and discharge
of treated wastewater, and treatment and distribution of recycled water, and use of the term"wastewater services"
herein refers to all 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 public meetings on the proposed rates pursuant to the
Study on May 15, 2023, June 19, 2023, and August 7, 2023; 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 June 23, 2023, 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,the Petaluma City Council conducted a public hearing on the proposed Rates on August 7,2023,
and received testimony and considered all evidence ("the Record")presented regarding the proposed Rates; and
WHEREAS, following the public hearing conducted on August 7, 2023, the City Clerk canvassed and
reported on the number of written protests received concerning the proposed Rates in accordance with Proposition
218,totaling six,in comparison with the number of parcels affected by the proposed Rates,totaling approximately
21,001; and
WHEREAS, in accordance with the canvass and report of the City Clerk, the number of written protests
received concerning the proposed Rates, totaling six, 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 over the cost of providing
wastewater services;
3. The proposed Rates as presented herein will not be used for purposes other than providing
wastewater services;
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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;
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 was 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
submit written protests opposing the proposed Rates; and
WHEREAS, the proposed Rates are "fees" or "charges" as defined in Section 2(e) of 218Article XIII D of
the California Constitution (established by Proposition 218), and are levies other than an ad valorem tax, special
tax,or assessment,imposed by an agency upon a parcel or 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,the proposed action is statutorily exempt from the requirements of the California Environmental
Quality Act (CEQA) in accordance with CEQA Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) as
the adoption of revised rates and charges pursuant to these resolutions involves the establishment, modification,
restructuring, or approval of rates and charges, as identified and analyzed in the rate 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; and Additionally, adopting a new rate schedule for water and wastewater
services is categorically exempt pursuant to CEQA Guidelines Section 15061(b)(3)because there is no possibility
that their adoption will have a significant effect on the environment.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma that the Petaluma
City Council hereby adopts this resolution for a new rate schedule for wastewater service repealing and replacing
Resolution 2017-075 N.C.S. as follows:
ARTICLE I
GENERAL
SECTION 1.1 PURPOSE.
A. Findin;;s. 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
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recycling of domestic wastewater, industrial wastewater, commercial wastewater, and payment of
principal and interest on debt and capital recovery costs, and for collection and disposal of stormwater.
C. Resolution. The purpose of this resolution is to establish a method of equitably apportioning 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 Wastewater Utility 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 Chapter 28 of the Petaluma Implementing 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
b. Any duplex, triplex, fourplex, townhouse or condominium, apartment house, loft, 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 approximately 748 gallons.
• "Low Strength"means Non-residential User wastewater with a BOD concentration of less than
or equal to 300 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 500 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.
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ARTICLE III
RATES
SECTION 3.1 WASTEWATER SERVICE CHARGES.
A. Residential Users. The fixed monthly charge 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 charge for Non-residential Users shall be as set forth in Table
1, as adjusted in accordance with this ARTICLE.
C. Fixed Monthly and Wastewater Commodity(Usage) Charge Annual Increases Due to Inflation.
Beginning July 1, 2024, and each July 1 thereafter, the Base Sewer fixed and consumption charges
shown in Table I will be adjusted by the percentage change in the Consumer Price Index (CPI) for the
San Francisco Bay Area from the base reference index of 331.222 for December 2022 to the index for
December of the year preceding each annual rate adjustment. A negative percentage change in CPI any
year shall result in no inflationary adjustment for that year.
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Table 1. Wastewater Rates
Base Wastewater Rates Effective on or After
Sept 1 July 1 July 1 July 1 July 1
2023 2024 2025 2026 2027
FIXED MONTHLY CHARGES
Fixed monthly charges billed per residential dwelling unit or based on non-residential meter size.
RESIDENTIAL
Fixed monthly charge per dwelling unit
Single Family Residential $39.85 $40.64 $41.46 $42.29 $43.14
Multi-Unit Residential 33.88 34.55 35.24 35.95 36.67
Unmetered Residential 105.99 108.11 110.27 112.48 114.72
NON-RESIDENTIAL
Fixed monthly charge based on metersize
Up to 3/4-inch meter $39.85 $40.64 $41.46 $42.29 $43.14
1-inch meter 65.59 66.90 68.24 69.61 71.00
1-1/2 inch meter 129.91 132.51 135.16 137.86 140.62
2-inch meter 207.12 211.26 215.49 219.79 224.19
3-inch meter 387.28 395.03 402.93 410.98 419.20
4-inch meter 644.34 657.22 670.37 683.78 697.45
6-inch meter 1,288.04 1,313.80 1,340.07 1,366.87 1,394.21
METERED INDUSTRIAL
Fixed monthly charge based on metersize
2-inch ultrasonic meter $580.31 $591.92 $603.76 $615.83 $628.15
10-inch ultrasonic meter 1,288.04 1,313.80 1,340.07 1,366.87 1,394.21
2-inch magnetic meter 387.28 395.03 402.93 410.98 419.20
3-inch magnetic meter 850.53 867.55 884.90 902.60 920.66
4-inch magnetic meter 1,352.37 1,379.42 1,407.00 1,435.14 1,463.85
6-inch magnetic meter 2,703.52 2,757.60 2,812.75 2,869.01 2,926.39
WASTEWATER COMMODITY CHARGES
Volumetric charges billed per hundred cubic feet(hcf)of estimated wastewater discharge.
RESIDENTIAL
Based on a)average of two lowest of four low use months of metered winter water use orb)actual water use
Single Family Residential $9.45 $9.63 $9.83 $10.02 $10.22
Multi-Unit Residential 9.45 9.63 9.83 10.02 10.22
COMMERCIAL
Billed based on metered water use
Low Strength $9.09 $9.28 $9.47 $9.65 $9.85
Medium Strength 12.38 12.63 12.89 13.14 13.41
High Strength 16.82 17.16 17.50 17.85 18.21
METERED INDUSTRIAL
Based on metered use&estimated wastewater loadings
Flow($/hcf) $7.82 $7.97 $8.13 $8.29 $8.46
BOD($/Ib) 1.33 1.36 1.39 1.42 1.45
SS($/Ib) 1.50 1.53 1.57 1.60 1.63
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SECTION 3.2 WASTEWATER COMMODITY 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 estimated 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 patterns of use, as determined by the 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 a 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 addition 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. Wastewater Commodity Charges 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 wastewater commodity
charge based on wastewater strength. Assignment to Low, Medium, or High strength shall be as
determined by the Director or based on laboratory 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.
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C. Short-Term Discharge. A short-term discharge fee is hereby established at the Commercial Sewer
Commodity rate in Table I 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 the permit. If the discharge period continues beyond one year, the 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 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 I
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 the permit. If the discharge period continues beyond one year, the 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 the permit. If the discharge period continues beyond five years,
the 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.
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 addition to the charge set forth in Section 3.1.
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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 71h day of August 2023, DocuSigned I rm:
by the following vote:
City Attorney
AYES: McDonnell,Barnacle,Cader Thompson,Healy,Nan,Pocekay,Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
LDOC;M891199F4492
uSigned by: DocuSigned by:
ATTEST:
City Clerk Mayor isaasaosza�s...
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