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HomeMy WebLinkAboutStaff Report 5.A 12/05/2011 • Correcte% Iteww # .A /859 DATE: December 5, 2011 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Remleh Scherzinger, P.E., Interim Director, Dept. of Water Resources Conservation SUBJECT: Public Hearing on Water and Wastewater Services Charges: A) A Resolution of the City Council of the City of Petaluma Adopting A New Rate Schedule for Water Service Superseding Resolution No 2007 -022; B) A Resolution of the City Council of the City of Petaluma Adopting A New Rate Schedule for Wastewater Service Superseding Resolution No. 2007 -023. RECOMMENDATION It is recommended that the City Council receive the Final Financial Plan and Rate Study, and conduct the required Public Hearing. Following the conclusion of the Public Hearing, it is recommended that the City Council adopt the attached Resolutions Adopting A New Rate Schedule for Water Service„ Superseding: Resolution No 2007 -022; and, Adopting A New Rate Schedule for Wastewater Service Superseding Resolution No, 2007 -023. BACKGROUND In June 2009 the City contracted with the Reed Group to prepare financial plans and rate studies for the water and wastewaterutilities to address system needs for the five -year period beginning with the 2012 rate year. The Study included analysis of ongoing .operation and maintenance activities, debt service obligations, short -term capital improvement projects, and ongoing revenue requirements, and provided recommendations for modified rate structures and rate. adjustments. This .comprehensive analysis determined that the revenue necessary to support the continued operation and maintenance of the City's water and wastewater systems exceeds the revenue generated by the current rate structures. The need for prudent investment in the City's water and wastewater utilities is being driven by continued deterioration of aging pipeline and pumping station infrastru'eture and equipment, construction and subsequent long -term financing of Ellis Creek Water Recycling Facility, increasingly strict regulatory requirements, and projected wholesale water costs and inflationary increases. The City Council received a presentation on the draft Study on November 1, 2010. Questions and comments from the Council included a request for a workshop; reserve requirements to meet bond covenants; work undertaken on rate design and revenue requirements, fixed and variable Agenda Review: City Attorney Finance Dir- . ity Manager 1 costs and regulatory constraints; recycled water distribution investments; rate design methodology; variable costs associated with the Sonoma County Water Agency; possible need to look at commodity charges for both utilities; conservation objectives and their impact to the rate structure; reserve policy to buffer variable revenues; impacts of a pay -as- you -go system ;, options to defer a portion of the recycled water system improvements until later in the 20. -year capital improvement period; margins for ensuring ability to meet debt service requirements; inherent costs for past increases by the Sonoma County Water Agency; groundwater use reduction over the next four years; and options for the type of bonds issued to refinance Lines of Credit debt and amortization periods. The Council conducted a public workshop on November 30, 2010 and on December 6, 2010 provided comments and direction for additional analysis prior to preparing the report for consideration through a public hearing process. The Council received a presentation of the Report on October 24, 2011 (see Agenda Report, Attachment 3), at which time the Council provided further direction for the preparation of the Final Report. This direction is addressed in the "Discussion" section of this document. A Public Notice (see Attachment 4) on the proposed rates and public hearing was sent to property owners and utility customers on October 18, 2011; was published in the Petaluma Argus Courier on October 20, 2011; and, was posted on the City's website. The Rate Study Report was also made available on the City's website. As of November 28, 2011, eighteen letters of protest had been received (see Attachment 5). Items carried forward from the 2007 Resolutions and remaining unchanged include those sections pertaining to outside water and wastewater fees, private fire protection service fees, recycled water commodity charges, hot tap fees, temporary water connection service fees, and penalty charges. These components were not addressed in the Rate Study nor the Public Hearing notice. DISCUSSION The Final Financial Plan and Utility Rate Study moved the term of analysis from 2011 -2015 to 2012 -2016 to reflect the year of additional analysis. The Rate Study proposes to modify rates and rate structures to begin in January 2012 and proposes an automatic rate adjustment mechanism to pass through the SCWA rate changes to begin in July 2012. The Rate Study recommendations also include automatic water and wastewater rate inflationary adjustments to begin in January 2013, . and continuing each year through January 2016. The Rate Study further proposes to establish an Operating and Maintenance reserve for both water and wastewater equal,to 25% of annual costs. This is roughly equal to 3 months of average operating expenses.. The preparation of a five -year financial plan and rate structure incorporated assumptions relating to inflation rates, interest rates, customer growth rates, and water demand estimations. These assumptions are discussed in detail on pages 13 through 20 of the Report. 2 The Council. Agenda Report for October 24, 2011' provides discussion of the work effort to date, public and, Council input during the four meetings / workshop at which this topic was presented and discussed, as well as the intent and content of Rate Study report. Council discussion included the following topics: historic number of vacancies and their affect on demand; are conservation measures netted out of demand growth; other factors included in the five year rate recommendations; Council ability to .revisit during the 5 -year period should circumstances significantly change; margins and rate stabilization measures; conservative estimates; maximum term for rate adjustments (up to 5 years); concern from customers on fixed incomes on water usage rates (being reduced for low -end users); larger meter size charge and relationship to capacity fee (based on demand of the system and routine maintenance of system); equitable changes to rates to recognize low-end users; rate increases for industrial large water users; capacity fee reporting and projections within report; protest process; and recycled water improvement timing. Three citizens testified at the Council meeting. Two major issues of concern were the continued use of groundwater to offset purchases, and deferred capital. Staying on some groundwater reduces the SCWA purchases, and the annual automatic SCWA rate adjustments might be reduced by about 0.2% each year. Staff is currently in the initial stages of updating the Sanitary Sewer Master Plan, which will develop priority, timing, and budgets for capital projects. The proposed rates will support continued protection of public health and the environment, will remain competitive with nearby communities, and will support the City's ability to meet debt obligations and governmental regulatory requirements, which will update the current Capital program and delineate funding needs in the out years. )FINANCIAL. IMPACTS The financial impact associated with adoption of the Rate Study recommendations is discussed in the Five -Year Financial Plan analysis section. The analysis provides background, definition of funding and rate structures, cash flows within the two utility funds, assumptions reflected in the analysis for the report, customer and account characteristics, capital improvement program funding, long -term debt financing, operating reserves, and conclusions and recommendations. • The intent of the Study was to achieve fiscal sustainability'for both utilities for the five -year study period and beyond. Total cost of work effort to date is approximately $123,000, including the Elections Code section 9212 Report on Measure K and three working drafts of the Financial Plan and Rate Study. ATTACHMENTS 1: Resolution Adopting New Water Rates 2. Resolution Adopting. New Wastewater Rates. 3. Exhibit A to Resolutions Adopting New Water and Wastewater Rates — Water & Wastewater_ Rate Study and Financial Plan Dated November 4, 2011 (Due to size, a copy is available at the City Clerk's office) 4. Agenda Report for City Council Meeting of October 24, 2011 5. Notice on Public Hearing and Rates 3 6. Public Comment Letters Received as of November 13, 2011 (sixteen) Note: The Water and Wastewater Financial Plan and Rate Study Final Report, dated November 4, 2011 is provided as Exhibit A to the proposed Resolutions (Attachments 1 and 2) and was previously provided to City Council and public. • 4 Attachment 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA ADOPTING A NEW RATE SCHEDULE FOR WATER SERVICE AND SUPERSEDING RESOLUTION NO. 2007-022 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 pumping, storage and distribution of groundwater; and WHEREAS, the City retained The Reed Group, Inc. to develop a Water and Wastewater Rate Study and Financial Plan ( "Study "); and WHEREAS, the Petaluma City Council conducted a public meeting on the proposed rates pursuant to the Study on October 24, 201 1; and WHEREAS, notice of the proposed water rate increases ( "Rates ") and a public hearing on possible adoption of the Rates on December 5, 2011 was mailed to water utility customers and record owners of properties that would be impacted by the proposed increases on October 18, 2011; and WHEREAS, a notice of the proposed Rates and the December 5 public hearing was published in the Petaluma Argus Courier on October 20, 2011; and WHEREAS, the Petaluma City Council conducted a public hearing on the proposed Rates on December 5, 2011, and received testimony and considered all evidence ( "the Record ") presented regarding the proposed Rates; and WHEREAS, a majority of the record owners of properties that would be impacted by the rate increases did not protest the increases; 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 water services to residents and businesses in Petaluma; 5 (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; (5) 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 (6) A majority of record owners of properties that would be impacted by the proposed Rates did not protest the proposed, Rates; and WHEREAS, the proposed Rates are not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC 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 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, that the Petaluma City Council hereby adopts this resolution superseding Resolution 2007 -022. effective January 1, 2012. 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 6 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 Wastewater and Water Rate Study and Financial Plan prepared by The Reed Group, Inc. 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. Table 1. Monthly Water Service and Commodity (Usage) Charges Water Rates - (Jan. 2012) Monthly Service Charges Up to 3/4" meter $ 6.66 1" meter (resid.) $ 9.70 1" meter $ 9.70 1 1/2" meter $ 17.25 2" meter $ 26.35 3" meter $ 47.59 • 4" meter $ 77.92 6" meter $ 153.70 Water Usage Charge ($ /hcf) Single Family (1) Tier 1 $ 2.91 Tier 2 $ 3.49 Tier 3 $ 4.36 Tier '4 $ 5.66 Other Customers ' All water usage $ 3.24 Notes: (1) Monthly tier allocations: Tier 1 0 -8 hcf /mo. Tier 2 9 -16 hcf /mo. Tier 3 17 -24 hcf /mo. Tier 4 >24 hcf /mo. (B) Monthly Service and Commodity (Usage) Charge Annual Increases. Beginning January 1, 2013 and each January 1 thereafter, all fixed monthly service 7 charges and water usage charges shall be adjusted upward based on changes to the San Francisco- Oakland -San Jose consumer price index (San Francisco CPI) for all items and all urban consumers from August to August in the preceding year. A negative CPI shall result in no change in the rate structure. (C) Monthly Usage Charge Annual Pass Through Increase. Beginning July 1, 2013 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. Following the formal adoption of new water rates by the SCWA, the. City will use the calculation methodology shown in Table 2 to calculate adjustments to the City's water usage rates. The actual rate adjustments will depend on the specific action taken by SCWA each year, as well as the City's need for purchasing water supplies. Table 2. Sample Calculation of Automatic Rate Adjustment for Changes in SCWA Water Charges (I) SCWA Water Charges Petaluma Aqueduct Current Rate (FY 11 -12) $ 634.11 /AF Estimated Future Rate (FY 12-13) $ 672.15 /AF Change $ 38.04 /AF 6.0 %` Estimated SCWA Water Purchases (annual) SCWA Water Purchase Volume 7,532 AF Impact of SCWA Cost Change $ 286,506 Petaluma Water Usage Rate Impact Est. Annual Water Usage Revenue (2) $ 10,661,000 Impact of SCWA Cost Change 2.7% City's Pass- Proposed 2012 Through Water Usage Adjustment Petaluma. Water Usage Rates Rates (3) Single Family Residential Tier 1 $ 2.91 /hcf 0.08 /hcf Tier 2 $ 3.49 /hcf 0.09 /hcf $ Tier 3 $ 4.36 /hcf 0.12 /hcf $ Tier 4 $ 5.66 /hcf 0.15 /hcf $ MF, Comm., Inst., Indus, & Irrig. $ 3.24 /hcf 0.09 /hcf 8 'rye Notes: (1) Assumes the City adopts the proposed 2012 water rates, which is then followed by a SCWA FY 12 -13 rate increase of 6 percent. (2) Based on current usage rates and estimated annual water sales. (3) Pass through adjustments would be 'added to the then current water usage rates. Legend: Data input fields, - -> Resulting rate adjustments - -> SECTION 2.2 RECYCLED WATER COMMODITY CHARGES. The commodity charge for recycled water use shall continue to be as shown in Table 3, unless otherwise determined by individual contract, and until subsequently amended by the City Council. Table 3. Recycled Water Commodity Charge Commodity Charge on Billings Rendered On or After the Dates Indicated Below (per het) Feb. 1, January 1, January 1, January 1, January 1, Y' 2007 2008 2009 2010 2011 $1.46 $1.58 $1.68 $1.77 $1.88 SECTION 2.3 PRIVATE FIRE PROTECTION. (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 1 /2 $3:90 2 $5.64 3 $8.40 4 $11.22 6 $16.80 8 $22.44 (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 "business" commodity rate in Table 2. 9 ARTICLE III OTHER CHARGES SECTION 3.1 DELINQUENCY AND SERVICE. RESTORATION CHARGES. (A) Delinquency Charges. If payment is not made within thirty (30) days after mailing, it is delinquent, and a late charge of $10 will be levied. (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 Department of Water Resources and Conservation 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. A fee of $25 shall be charged for each check tendered as a. payment to the City that is returned from the bank for non - sufficient funds. SECTION 3.3 TURN -ON CHARGE FOR NEW ACCOUNTS. A charge of $15.00 shall be paid for turning on a service for new accounts during normal working hours. A charge of $60 shall be paid for turning on a service for new accounts after normal working hours. SECTION 3.4 TEMPORARY WATER SERVICE CONNECTION. Wherever feasible, recycled water shall be used for temporary construction uses. (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 $100 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 $600 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. 0 (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 or Hydrant Meter. A $2.00 per day service charge shall be applied for water service, irrespective of the quantity used. (C) Commodity Charge. The potable water commodity charge shall be the same as the "business" class in Table 2. The recycled water commodity charge shall be as shown in Table 3. (D) Fees. Fees associated with temporary City meters are shown below. 10 DESCRIPTION FEE FIRST TIME METER SET $45 UNABLE TO SET/TEST METER $30 RELOCATE METER $45 RUSH METER SET/RELOCATE (IF $80 _ s . SET/RELOCATE REQUEST IS WITHIN 24 HOURS OF PERMIT ISSUANCE OR RELOCATION REQUEST) 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 HOT TAP FEE (INCHES) 3 /4 - 2 $200 4 — 6 $400 8 $500 10 -12 $750 (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 $50 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 $500 for each occurrence plus $50 for each additional day that such use occurs. ARTICLE VI SECURITY DEPOSITS SECTION 6.1 AMOUNT. The City may impose a security deposit of $100 to open an account or for instances of delinquent payments. 11 = nj 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. No adjustments will be made for water delivered after sixty days after the City issues the water bill with excessive use (E) Adjustments. Under $25 No adjustments shall be made for an amount less than twenty -five dollars ($25). 12 SECTION 7.3 WASTEWATER BILL ADJUSTMENT. This section addresses adjustments to wastewater bills due to a water leak. a: (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 twenty0five 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. ar 13 -4, Attachment' 2, A RESOLUTION OF THE CI'T'Y COUNCIL OF 'T=IE' CITY OF:PETALUMA ADOPTING A NEW RATE SCHEDULE FOR WASTEWATER SERVICE SUPERSEDING RESOLUTION NO. 2007 -023 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 The Reed Group, Inc! to develop a Wastewater and Water Rate Study and. Financial`Plan'( "Study "); and WHEREAS, the Petaluma. City Council conducted a public meeting on the proposed rates pursuant to the Study on October 24, 201 1; and WHEREAS, a notice of proposed wastewater; rate'' increases ( "Rates ") and a public hearing on possible adoption of the Rates' on December 5, 2011 was mailed to wastewater utility customers and record owners of properties that would be impacted by the proposed increases October 18 „`2011;, and WHEREAS, a notice of the proposed Rates and the 5 public hearing was published in the Petaluma Argus Courier on October 20,,°2011 and WHEREAS, the Petaluma City. Council conducted a public hearing on the proposed Rates on December 5, 2011, and, received testimony and considered all evidence ( "the Record ") presented regarding the proposed Rates; and WHEREAS . amajority of the record owners of p roperties that would be impacted by the rate increases "did not protest increases; and 14 WHEREAS,. after. due consideration, the Petaluma City Council finds based on the Study;, and the' Record that: 1. The proposed Rates as °presented hereinare°necessary to achieve full recovery ofthe 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. Proper notice of theproposed Rates were given to record owners of properties that would be impacted by theproposed'increases, as prescribed by law; and 6. A majority of record owners Of that would be impacted by the proposed increases did not protest the' proposed Rates; and WHEREAS, the proposed Rates - are not a "tax" as defined in-Section 1, paragraph (e) of Article XIIIC of the California. Constitution ( "Proposition 26") because such rates are imposed for aspecific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does notexceed 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 g for to a local overnment 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 acondition of property development; and WHEREAS, adoption of revised rates and charges pursuant to this resolution involves the establishment, modification, _restr 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 th is • resolution setting rates and charges is not a project under the California Environmental Quality Act pursuant to'C Resources Code Section 21080(b)'(8)(D) and 14 Cal. Code Regs. Section 15273. NOW, THEREF.ORE,,BE IT'RESOEVED, that the Petaluma City Council hereby adopts this resolution superseding Resolution2007 - 023 effective,January °1, 2012. 15 ARTICLE `I- GENERAL ,. SECTION 1.1 PURPOSE. (A) Findings. The aboverecitals are hereby declared to be true and correct 'and to be , findings of the City Council ofthe City of Petaluma and are made a part of this resolution (B) Revenue. The purposeof the wastewater service charge is to raise revenue for °the cost of operation and ,maintenance p � � of the City of Petaluma's wastewater Utility , used' for the collection, treatment, disposal, and xecyelmg, of domestic. wastewater, 'industrial wastewater, commercial wastewater, and for`p.ayment of principal and interest on'bonds and capital recovery costs, and for collection arid disposal ofstorm water:. (C) Resolution. The epurpose: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.resolut"ionaiid the Wastewatei charges established in this resolution are based on the Wastewater, and Water Rate Study and Financial Plan prepared by The Reed Group; Inc.. The Study is attached to and made a partiof 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 Water Resources and Conservation, or his /her designee. "Dwelling Unit" means:: (a) Any single-family dwelling or mobile home designed for occupancy by one family, each of which shall'be'deemed' equivalent too one dwelling unit, and (b) Any duplex„ triplex, fourpl'ex, "townhouse or condorninium, apartment house , p 'designed for occupancy for living lofts mobile home � ark or other multi-residential purposes' b more than one family, wh which is divided into establishment, ' g p rp y parate residential units, each of which is designed ,,for occupancy ,;by one family only ,each:resident unit shall be deemed equivalent g t am e x ` p an a artment ^corn , p plex with 1'0 apartments shall be Considered to have g e 0 dwellin niits.e "het" means hundred cubic feet;, 'Onelief 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 or equal to •300 mg /L. eater hStrength' " N sidential User wastewater with a BOD concentration of "High gr q to 70,1 mg/L and TSS concentration of greater than or equal,to 451 mg /L.. "Medium Strength" means Non- residential User wastewater witha BOD concentration. of 35.:1 to 700.m / and a T g S concentration of_301 to 450 mg/L. S "Metered Industrial Users means a Non-residential User whose wastewater discharge is metered and'whose wastewater service charge is based onlaboratory 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. ' 16 "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 mere than one family; which is divided into separate residential units, each of which is designed for occupancy by one familyonly. "TSS" means total snsperided Solids. • "Unmetered Residentia17',,means Residential Users whose potable water is provided part or in whole byA 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,. (B) Non-residential Users: The fixed monthly fee for Non-residential Users shall be as set forth in Table 1. Table 1. Fixed Monthly Wastewater and Wastewater Usage Charges • , January 2012 Monthly Service Charge Single Family Residential $ 17.15 Unmeterecl ,$ 79.55 Multi-Family Resid. (per ) $ 14.94 Non-Residential. Up to 314" meter $ 17.15 1" meter ' " $ 25.88 1 1/2" meter $. 47.52 2" meter $ 7359 3" meter $ 134.47 4" meter 221.41 6" meter $ 438.57 • Metered Industrial • • 2" Ultrasonic' Meter $ 199.64 1,0" Ultrasonic Meter $ 438.61 2" Magnetic.Meter $ 134.47 3" Magnetic Meter $ 286..54 4".' Magnetic Meter $ 438.61 6" Magnetic Meter $ 1,090.36 Wastewater Usage Charge ($/hcf) • Single 'Family Residential $ 7.78 Multi-Farriily,Residential (per DLO 7.78 Non-Residential tow Strength $ 7.62 'Medium 'Strength 9.35 High Strength $ 12.16 17 , „ Metered Industrial (2) Flow ($ /hcf) $ 6.06 BOp, ($/ib). $ , 0.58 TSS ($ /Ib) $ 0.67 Notes: (1) Effective: January 1. (2) Includes customers for which wastewater flows are sampled and tested to determine appropriate charges. (3) Proposed rates include rate restructuring as well as an overall 5 percent revenue increase over the current rates. (C) Fixed Monthly Fee Annual Increases. Beginning January 1, 2013 and each January 1 thereafter, fixed monthly fees shall increase based on changes to the San Francisco- Oakland -San Jose consumer price index (San Francisco CPI) for all items and all urban consumers from August to August in the preceding year plus one and one -half percent (1.5 %), with a minimum annual increase of two percent (2 %). 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 each month during the winter months. The w inter months shall generally be December, January, February, and /or March, but actual winter months used for this determination may vary depending on individual billing, cycles or pattern of use, as determined by the Director. The average becomes effective each July and is based on the most recent average 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 8 hcf. (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, Low, Medium, High. A g g m, g Assignment to Low, Medium, or High strength shall be as determined by the Director, or based on laboratory analyses .o of the '.Non-residential User's wastewater. A State of California Certified laboratory must conduct the laboratory analysis. (C) UserCharges Annual Increases. Beginning January 1, 2013 and each January 1 thereafter, user charges shall .increase based on changes to the San Francisco - Oakland -San Jose consumer price index for all items and all urban consumers from August to August in the preceding year plus one and one -half percent (1.5 %), with a minimum annual increase of two percent (2 %). 18 SECTION 3.3 SPECIAL CHARGES AND FEES. •(A) .Sample Collection and Laboratory Analysis. The City shalt charge for samples collected bythe 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 thesample: (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 he'$250 (b) For Violation:Follow-Up .Sampling. The charge for collecting a "grab' sample shall be $ 100. The Charge for collecting a composite saitiple shall be $350. (2) Laboratory Analysis Charges. (a) Outsidetaboratories: Samples analyzed by outside laboratories shall be charged • at cost per sample. (b) City Laboratory.. Samples analyzed bythe City's laboratory for conventional pollutants shall be,$,125 per sample. (B) Septic Waste. Discharge aseptic waste shall be charged at $0.25 per gallon of discharge: Discharge may not :occur without a perrnit. (C) Shortzferm,Discharge. A short-terrn dischargefee is hereby established at $0.06 Per gallon, with a $500.00 minimum fee, 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 ,fer 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 ofperrnit. Ifthe discharge period does .continue beyond one year discharger will be assessed applicable and then wastewater service and connection fees. The decision to accept any'such temporary discharge and all requirements pertaining to the acceptance of such temporary discharge, wastewater service Charges, 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 witkall applicable federal, state and local laws, regulations and orders, including, but not limited to, the City's seer 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 (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-Resid'etitial Users. Non-residentialusers' outside of the City limits shall be 'charged $�80 per month for each account in additiOnal to the charge set forth in Section 3.1. 19 Attachment 3 EXHIBIT A TO RESOLUTION ADOPTING WASTEWATER REVENUE PROGRAM WATER & WASTEWATER RATE STUDY AND FINANCIAL PLAN Dated November 4, 2011 20 P' 1 ' U Attachment or zas$ DATE : 'October 24, 2011 TO Honorable Ma or y and Members of the City Council through City Manager FROM: iRemleh Scherzinger, P.E. — Interim Director, Water Resources & Conservation SUBJECT: E Presentation of the Water and. Wastewater Financial Plan and Rate Stud y RECOMMENDATION It is recommended that the City Council near p a resentatiori,.receive the draft Rate Study, provide questions and comments to the consultant,. Robert Reed, and recognize the required 45 g q day public notice for the Water and Wastewater Financial Plan and. Rate Study having commenced on October 20t 2011 , for a Public Hearing to beheld on December 5, 2011. NOTE: The Public Hearing Notice was mailed on October 18 to all utility customers and published in the newspaper of record on October 20 BACKGROUND In March 2009 the City distributed a Request for Proposals for the preparation of a Utility Rate Study to address water, wastewater and recycled water services. A Comprehensive Utility Investment Program, adopted in January 2007, identified annual adjustments to water and wastewater rates over a five year period. The City is currently finishing the fifth year of the 2007 rate program. The ur ose of the Utility Rate Study is to conduct a comprehensive study of water, wastewater pp Y Y� p Y and recycled water rates, and propose p ',rates that: ® address water; wastewater and recycled water services; ® are fair-and objective; ®: are based on a lean and efficient operation of the system, and current capital cost assumptions and needs to support protection of public health and the environment; ® maintain prudent equipment and operating reserves and support existing and future _financing obligations; ® encourage water:conservation; ® account for the impacts, of the Sonoma County Water Agency's rates, which increased 11 %o in 2008, 9.49% in 2009, 6.93% in 2010, 5% in 2011, and are anticipated to increase from 5 to 7 % over the next 5 years; and • Agenda Review: Dept, Director City Attorney, .. • • Finance Director City Manager 4 21 m support g' Q Control trol Board, State Water Resources Control Board and aEnvironmental Protection Agency requirements. Early in the work effort, the focus was redirected to provide assistance in the response to the wastewater (known as Measure U , which resulted in the Re ort on Potential Fiscal er rate' initiative know ) p and Other Impacts of Proposed Initiative to. Reduce City of Petaluma Wastewater Service Rates to Rates in Effect on January 1, 2006 in Accordance with California Elections Code Section • 9212 (92 12 Report). This redirected work effort began in September 2009 and resulted in a report presented to City Council in October 2009. On November 1, 2010 the City Council heard a presentation on the Draft Water and Wastewater Financial Plan and Rate Study. Council comments focused on the need for a public workshop, reserve fundneeds and requirements, recycled water system improvements and timing, groundwater use to offset wholesale cost increases and coordination with the City's economic plan; a list of comments is attached. Public comments included the need for a workshop, suggestion for a citizen's oversight committee, cost of recycled water, need to increase use of groundwater; reasonableness of proposed rates, and, recommendation to delete stormwater activities from utility function; a bullet list of comments is attached. On November 30, 2010 the Council conducted a workshop on the Rate Study, which included the following discussion points: Presentation by Bob Reed including: o Study framework and overview • Key issues and considerations o Financial Plans, • Current financial situation Assumptions and variables ▪ Revenue needs o Rate recommendations ® . Rate .structure issues and recommended changes ▪ Annual -rate adjustments o Summary and next steps Council comments and discussion focused on the timing and tracking of capital projects, consistency w ith long -term needs, financing options, maintenance of system and assets, projected capital expenditures, recycled water system improvement timing, impacts of proposed rate structure changes, and the need to specifically notify users; specific comments are provided on attachment. Public comments included 'effect ' of increases on citizens on fixed incomes and large industrial businesses, need to stay competitive, need for recycled water system improvements, need to expand industrial user base and pursue creative means to deal with waste products; a list of specific comments is attached. 5 22 • On Deceinber'6, 2010, subsequent to the November workshop, the City Council approved a Resolution that modified the adopted schedule and reduced the wastewater rate increase for January, 2011 from 13% to 9 %. As well, Council directed.' City staff to pursue completion of the Urban- Water', Management Plan (submitted in July 2011), water demand 'projects, and as appropriate complete the final Financial Plan and Utility Rate Study. DISCUSSION The Final Financial Plan and Utility Rate Study moved the`term of analysis from 2011 -2015 to 2012 -2016 to reflect the year of additional analysis; included FY 10- 11. revenues ' and expenses and the FY .11 -12 budget in the report; reflects the .first increase planned for January 2012; and, also reflects the reduction of the 2011 increase. Additionally, the Rate Study proposes to modify rate and rate structures to begin'in,January 20.12 and proposes an automatic rate adjustment mechanism to pass through the SCWA rate changes to begin Jul _ 2012. The ro os also p g g g Y p p suggests automatic water and wastewater rate inflationary adjustments to begin in January 2013 through January 2016. The Rate Study further proposes to establish. an Operating and Maintenance reserve for both water and wastewater equal to 25% of annual costs. This is roughly equal to 3'months of average operating expenses. The preparation of a five -year financial plan and rate structure incorporated assumptions relating to inflation rates, interest rates, customer growth rates, and water demand estimations. These ;assumptions are discussed in detail on pages 13 through 20 of the Report, briefly .summarized as follows: . ® General inflation will be 3% for the five -year period, and applies to all operating costs unless otherwise noted (such as SCWA wholesale rate increases). This is slightly higher than the 2 %. assumed in the 2010 draft study. ®. Customer base of approximately 19,300 water accounts. and 18,300 wastewater accounts. rox Y • Growth projection assumptions of 0.1% (equivalent to appro ximately 25 homes) in FY11 -12, 0.2% (equal to approximately 50 homes) in FYs 12 -14, 0.3% (equal to approximately 75 homes) in FYs 14-16. Water and Wastewater Demand affected by downturn in economy, weather conditions ' vacancy ates, and water conservation awareness and efforts, which has adversely. r . p Y impacted revenues. Water use demands appear to have rebounded slightly in,FY 11 -12 . 1n an, effort to be conservative, no additional increases in water or wastewater demands are included in the financial plan. • Capacity Fees and Projected Fee Revenue are adjusted each year based on changes in the construction index ,. even downward when reflected in the economy. The analysis assumes utility capacity fees will continue to be . adjusted annually to reflect construction index. • Water Supplies: the study assumes the .City will reduce its groundwater usage within the time period of this study to rely 100% on SCWA water by FY 14 -15. ® Water System Losses: assumed a water system loss rate of 8 %, 4% of which is assumed for fire protection, water main flushing, sewer cleaning, bill adjustments, and other non- billed uses. 6 23 ® Storm Drainage Costs: the budget includes $8:72,000 due to the benefit received from preventing storm (flood) waters from entering the wastewater collection system and treatment facilities: Note: A portion of this allocation will be funded with a temporary loan from the Wastewater Utility with a plan to pursue alternate long -term funding sources. Those tasks directly attributable to the safe operation of the wastewater utility and the reduction of inflow/infiltration of surface water into the sewer` collection system, will continue to be contained and funded within the wastewater utility: © Capital Improvement Program: individual projects are included as set forth in Exhibit TI -1 on page 17 of the Report. ® Existing Debt 'Obligations including the 2001 Water Revenue bonds with an outstanding balance of $7,725,000; the 2005 State Revolving Loan, balance of approximately $121,334,500 and the 2011 Wastewater Revenue Refunding Bonds,,issued February 2011 for a par value of $22,465,000. Last, as stated above, the Utility Rate Study identifies portions of the Surface Water operations and maintenance expenses not directly attributable to the Wastewater utility system. These . activities will be funded through a temporary loan from the. Wastewater Utility, specifically the Stormwater Impact Fee revenues. Upon direction from the City Council, staff will commence research into the viability, reasonableness, conimunity:interest and support, and process for the formation of a Surface Water Utility for the City of Petaluma. The research will be brought back to the City Council and community for further input prior to initiation of the formal district formation process. Findings of the Rate Study include: 1. In spite of current circumstances, relative rate stability appears possible for both utilities. 2. Relatively minor model water rate structure changes would assist in meeting the City's g g y rate setting objectives. 3. More significant changes to wastewater rates are necessary to better meet rate setting objectives and customer equity. Proposed changes to water rate structures would have minor impacts on most customers' water bills. Proposed wastewater rates, however, will likely wastewater bill increases for residential customers (relative to an across- the -board rate adjustment) and l el. result in small wastewat larger bill.. - many including industrial proposed increases for man non- residential customers mcludin industrial users.. The, ro osed rate , structure changes' reflect cost of' service requirements and improve the proportional distribution of costs across customer classes. FINANCIAL IMPACTS Total cost of work effort' is approximately $123,000 (including the 9212 Report on Measure U and three working drafts of the Financial Plan and Rate Study. The completion of the required public hearing process and the adoption of the Utility Rate Study and subsequent Resolution setting the utility rates for 2012- 201 scheduled for December 5, 2011, will ensure the intent of the 2010 Study is implemented, which is to maintain fiscal sustainability and accountability for both the water and wastewater utilities for the five -year study period. 7 24 Attachment 5 Notice of PtiblitHearing on A f Proposed Increases in Water a, ; d ' 2, e Wastewater Rates and Changes to Rate 'Structures When: Monday, December 5, 2011, 7 PM, City Hall, 11 English Street, Petaluma, CA The City of .Petaluma has been providing City p viding wastewater service, for over 65 years and water service,for over 100 years. The effects of inflation, aging infrastructure, increasingly y strict governmental regulations require sound management by the City on behalf of the ratepayers. Here's 'What the City is doing: Investment in. the Water System. The City invests $2 million annually to repair and replace worn and deteriorated Water main i eline pip° services arid nd saddles. Without this investment, the system maybe subject to increasingly costly and disruptive water main leaks. Construction of the'Ellis Creek Water Recycling Facility. This facility, with a constructions cost of ;$119 million, replaced tleCity's circa 1=938' wastewater treatment facility. The new facility now serves the community and for.generations will protect public health and the environment. Financing was achieved through a State' loan' at 2.4% and the "sale. of bonds. Construction began October 2005 and was completed in , April 2009. Upgrading the Wastewater Collection System. Increasingly strict regulatory requirements compel the City to wastewater investments pump station and in the $2' 5 million in FY 1 -12, $4 mill on in FY million and $5 million r in F p p �. FY 13-14 and beyond to repair 'the aging sewer system. Another two wastewater pump s a o,in line for • substantial upgrade as funds become available. Under specific direction from gi Quality Control Board the City has prioritized .a number of aging lines in the southwestern portion of the community for replacement. Compliance °with Proposition 218. Proposition 218 establishes procedural requirements for imposition of new and increased water and sewer charges. The procedural requirements include providing mailed'notice o f the amount of the p ro osed charge the basis for calculating the charge, p p g , g g_ the reasons for the charge and the date, time and location of a:`public hearing on the proposed charge., This Notice is being provided'to'Petaluma chan es basis owners and Water and sewer rate payers' in accordance With, d information on a public hears ed. rate c property s .. for rate calculation reasons rate changes, a Proposition p p g � � rate g ng on the proposed rate changes are all provided within this Notice. Proposed Water Rate Changes. Reaso s for Rate, Change A change in water service ,rates is. ation and g needed to fund continued,o er Reaso � p , nance of the water utili The primary `factors su ortin the need for a rate change are increases , , the City cost-to ,purchase. water,. increases in costs to operate the City's water distribution system, and planned capital and maintenance improvements., Basislor Calculating Rates and Proposed. New Rate Amounts. Water bills :include a;fixed service charge and consumption charge.. The Service Charge is for operating.and maintaining a system capable of providing potable b le wate b water at deliverable through the various meter sizes (e.g.: the larger the meter, the more be delivered to meet the needs of the consumer). Consumption charges are based on the . amount of water delivered to the customer. For .single- family residential customers consumption charges are based on four tiers . The rate tiers account for increased costs resulting' from higher volume water users. The average household, will see some usage in the second tier. Average .water consumption for a single - family 'v.. residential customer is about 10' hundred cubic feet (hcf) per month, or 7,480 gallons (1 hcf = 748 gallons). Table 1 presents the current and proposed water service rates. Under the proposed rates, what will the typical single - family residential water bill be? Using an average 10 • hcf per month, the first:8 hcf would be- charged at $2.91 per hcf for bills rendered on or after January 1, 2012. The next 2 hcf would be charged at $3.49.'per hcf. The total bill, including the monthly service charge of $6.66 would be $6.66 + (8 x $2.91) + (2 x $3.49) = $36.92 /month. This is an increase of approximately 3.8% 25 compared to the current rates:, Table 1 presents current and proposed water rates for all customers. Table 2 illustrates water bills fonrepresentative customers. 'Table 1. Current ancl Propiised Water Rates (1) - Current Proposed ' Water Rates Water Rates (Jan. 2011) . , (Jan. 2012) Monthly Service Charges . . , Up to 3/4" meter $ 5.69 $ 6.66 ., 1" meter (resid.) $ 6.84 , $ 9.70 , .. 1" meter $ 7.07 $ 9.70 • 1 1/2" meter $ 12.40 $ 17.25 • . 2" meter , $ 19.46 $ 26.35 3" meter $ • 40.19 $ 47.59. • 4" meter • $ 54.13 $ 77.92 6" meter $ 78.19 $ 153.70 • d Water Usage Charge ($/hcl) Single Family (3) . Tier 1 •$ 2.94 $ 2.91 Tier .2 $ 3.41 $ 3.49 Tier 3 $' 4.35 $ 4.36 Tier 4 $ . 4.82 $ 5 Other Customers (4) All water usage $ • 3.14 $. 3.24 , . • • Notes: ' • (1) 'Effective JanUary '1 °teach .year. (2). Proposed rates include rate restructuring as well as an overall 4 percent revenue increase over the current rates: (3) Monthly tier allocations: Current Proposed • Tier 1 0-9 hcf/mo. 0-8 hcf/mo. Tier 2 10-18 hcf/mo. 9-16 hcf/mo. • Tier 3 19-24 hcf/mo. , 17-24 hcf/mo. • Tier 4 >24 hcffino. >24 hcf/mo. (4) Includes multi-family, commercial, institutional, industrial, and irrigation accounts. Excludes recycled water accounts. • Tablel. Water Bill ImPacts for. RepreSenfatiVe •CUSfOmers 3.8% Monthly Current • Proposed Water Use • Water 'Rates Water Rates % Change (hf) • (Jan. 2011) • (Jan."2012) • (1) ' Singlefamily Residential Low Use 6 $ . 23.33 $ 24.12 3.4% • • Typical Use • 10 $ 35.56 $ 36.92 • . High Use • 18 $ 62.84 $ 66.58 • , 6.0% Very 1-ligh.Use 50 • $ 214.26 • $ 239190 • 12.0% , ^ . • Non-Residential v20-unit Apt. Bldg. (2" min) • 100. $ • 333.46 $ 350.35 •5.1% ' • Office Bldg. (2"Intr.) • 120 $ 39626 • $. 415.15 4.8% • . Restaurant (1" rntr.) 60 • $ 195.47 $ 204.10 4.4% •Landscape Irrig. (1 1/2" mtr.) 100 $ 326.40 $. 34125 4.5% • Notes: • (1) Proposed rates include rate restructuring as well as an overall 4 percent revenue over the curient rates. • . • Proposed Wastewater (Sewer) Rate Changes. - • Reasons for Rate Changes. A change in wastewater rates is needed to 1) Continue funding for repayment of construction loans for the Ellis Creek Water Recycling Facility; 2) Fund construction of other improvements to the wastewater utility, including the collection and pumping system and water recycling 0 . facilities; and 3) Fund continued' operation and maintenance of the Avastewater utility. Basis for Caleidating Rates and Proposed New Rate Amounts. Table 3 presents current and proposed wastewater rates. Table 4 illustrates wastewaterbills for representative customers. • 4 • . 26 . . . Table 3. Current "and .Proposed Wastewater Rates (1) Current Proposed Wastewater Wastewater _, , rRates Rates • (Jan. 2011) (Jan. 2012) 'Monthly Service Charge ' • • Single Family Residential '.$'" 16:19 $ 17.15 • Unmetered. $ 78.57 $, 79.55 Multi- Family Resid. (per DU) $ 16.19 $ 14.94 No n- Residential Up to 3/4" meter $ 16.19 $ 17.15' 1 "meter $ 16.19 $ .25.88` 1 1/2" meter $ 16.19 $ 47.52 . , 2" meter $ 16.19 $ • 73..59 . 3" meter $ 16.19 $ 134.47 ' 4" meter. $ 16.19 $ 221.41 , • 6" meter. $ 16.19 $ 438.57 Metered:Industrial 2" Ultrasonic Meter $ 16.19 $ 199.64 10" Ultrasonic Meter $ 16.19 $ 438.61 2 ", Magnetic Meter, $ 16.19 $ 134.47 3" Magnetic: Meter $ 16.19 $ 286.54 4" Magnetic Meter $ 16.19 $ 43.8.61 6" Magnetic, Meter $ 16.19 $ 1,090.36 • Wastewater' Usage Charge($/hct) Single Family Residential $ 7.67 $ 7.78 • Multi- Family Residential (per DU) $ 7.67 $ 7.78 Non- Residential Low Strength ' $ 7.64 $ 7.62 ' Medium Strength $ 9.09 $ 9.35 High Strength $ 11.76 $ 12.16 Metered Industrial (2) Flow ($ /hcf) " $ 5.69 $ 6.06 BOD ($ /Ib) $ 0.56 $ 0.58 TSS ($ /lb) $ 0.60 $ 0.67 Notes: (1) Effective January ' 1 of each year. (2) Includes customers for which wastewater flows are sampled and tested • to determine appropriate charges. (3) Proposed rates include rate restructuring as,well,as an overall 5 . ' percent revenue increase overthe current »rates. , Table 4. Wastewater Bill; Impacts forRepresentative Customers , Current Proposed . Monthly Wastewater Wastewater ' Sewer Flow Rates Rates % Change (hcf) (Jan.2011) (Jan.2012) (1) • Single,FamilyResidential Low Use. 4 $ 46.87 $ 48:27 'Typical Use . ' 6 $ 62.21 $ :63.83 - 2.6% High Use 10 $ 92.89, $ 94.95 2.2% Very High;Use 15 $ 131.24 $ 133.85 2.0 %0 Non-Residential 20 -Unit Apartment Building 100 $ 1,090.80 $ 1,076.80 -1.3% Office Bldg. (2" mtr., low strength) 120' $ ' 932.99 $ 987.99 5.9 % ' Restaurant (1" mtr., high strength) 60 $ 721.79 $ 755.48 4.7% Metered Industrial ' Small Industrial Service Charge $ 16.19 $ •286.54 . • 700 hcf $ 3,983.00 $ 4,242.00 1,100 Ibs BOD $ 616.00 $ 638.00 650 Ibs TSS $ 390.00 $ 435.50 $ 5,005.19 $ 5,602.04 11.9% Large Industrial Service Charge $ 16:19 $ 438.61 4,000 hcf $ 22,760.00 $ 24,240.00 13,000 Ibs BOD $ 7,280 00 $ 7,540.00 . ' 6,000 Ibs TSS $ 3,600.00 $ 4,020.00 $ 33,656 ° :19 $ 36,238.61 7.7% Notes: (1) 'Proposed rates include rate restructuring, as well as an overall 5 percent'revenue increase over the current rates. . - 27 Wastewater rates for residential customers are based on a fixed service charge plus a commodity charge based on average water usage during winter months (December through March) when water used for irrigation outside the residence is minimized. This rate structure reflects the reduced costs resulting from indoor water conservation efforts and helps to prevent irrigation water usage from being included in wastewater billing. The typical household uses 6 hcf (4;488 gallons) of water per month during the winter. For wastewater bills rendered on or after January 1, 2012, the wastewater charge would be $17.15 + ($7.78 x 6) = $63.83. This is an increase of approximately 2.6% compared to the,current rate. Because of the reduction in the service charge for multi-family dwellings, most multi- family customers will have lower wastewater bills under the proposed wastewater rates.. Wastewater rates for commercial and industrial customers are based on a fixed service charge and, a commodity charge based on water'use. l Automatic Adjustment to Water.. and Wastewater Rates In addition to the changes to the.water and wastewater rates proposed for January 1, 2012, as shown in the tables above, the City proposes to adopt formulas for automatically adjusting water and wastewater rates to reflect the effects of inflation, as well as changes to wholesale water purchase costs from the Sonoma . County Water Agency (SCWA). These adjustments to the water and wastewater rates would occur in accordance with Government Code section 53756 and as described below. In each instance, customers would be notified of the rate adjustments at least 30 days prior to implementation through utility bill inserts or other means. These automatic adjustments would occur for up to five years (unless rescinded or modified by the City Council), and would need to be reapproved if extended beyond five years. Adjustment to Water Usage Rates for Changes in Wholesale Water Purchase Costs The SCWA normally adjusts the rate charged to the City for wholesale water purchases in the spring of each year, to be effective in July. Following the formal adoption of new water rates by the SCWA, the City will use the calculation methodology shown in Table 5 to calculate adjustments to the City's water usage rates. Table 5 is an example of the calculation based on an assumed 6 percent increase in the rates charged by SCWA in 2012. The actual rate adjustments will depend on the specific action taken by SCWA each year. Table 5. Sample Calculation of Automatic Rate Adjustment for Changes in SCWA Water Charges (1) SCWA Water Charges Petaluma Aqueduct Current. Rate (FY 11 -12) $ 634.11 /AF Estimated Future Rate '(FY 12 -13) $ 672.15 /AF Change $ 38.04 /AF 6.0% Estimated SCWA Water Purchases (annual) SCWA Water Purchase Volume 7,532 I AF Impact, of SCWA Cost Change $ 286,506 Petaluma Water Usage Rate Impact ' Est. Annual Water Usage Revenue (2) 1 $ 10,661,000 Impact of Change 2.7% • City's Proposed 2012 Water Usage Pass - Through Petaluma Water Usage Rates Rates Adjustment (3) • Single Family Residential Tier 1 $ 2.91 /hcf $ 0.08 /hcf Tier 2 $ 3.49 /hcf $ 0.09 /hcf Tier 3 $ 4.36 /hcf $ 0.12 /hcf Tier '4 ' $ 5.66 /hcf $ 0.15 /hcf MF, Comm., Inst., Indus, & Irrig. $ 3.24 I /hcf $ 0.09 /hcf Notes: (1) Assumes the City adopts the proposed 2012 water rates, which is then followed by a SCWA FY 12 -13 rate increase of 6 percent. (2) Based on current usage rates and estimated annual water sales. (3) Pass through adjustments would be added to the then current water usage rates. 28 Adjustment to Water Rates for Changes in Inflation The City also propos s t that the e Water d • price er rate structure be adjusted effective January 1 of each year beginning in 2013, ba s n �° ges to the San Francisco - Oakland -San Jose consumer index for all items and all urban consumers (Sari Francisco CPI) from August to August in the preceding' year. All fixed y charges usage ` d' b'e adjusted by this percentage change in the San monthly char es. and all water usa e rates wool Francisco CPI. Adjustment to Wastewater Rates for Changes in Inflation The City also proposes that the wastewater rate structure be adjusted annually, effective January 1 of each year beginning in 2013, based on changes to the San Francisco CPI 'from August to Augustin the preceding year plus 1.5 percent. All fixed monthly service charges arid "all usage rates would be adjusted by this ` percentage change (San Francisco CPI + 1.5 %), subjectto'a 2% minimum annual adjustment. The rate . x . adjustment in excess of the San,Francisco CPI is needed, to help ensure adequate funding for mandated system rehabilitation projects, contractual debt - repayment obligations, andongoing•operations. PLEASE CONTACTUS: If `you have questions or comments., about the proposed rate increases,you may address the City Council and /or submit written comments concerning the proposed rate changes. If you wish to protest the proposed rate increases, you must file a written protest, in accordance with the following: Public Hearing on Proposed Rate Changes Attend the Public Hearing: Monday, December 5, 2011, starting at 7:00 PM Petaluma City Hall, 11 English Street, Petaluma, CA. Phone: Department of Water. Resources and Conservation (707) 778 -4546 Write: City Clerk, 11 English Street, Petaluma, CA 94952. To Protest: Owners or tenants of property receiving City water and wastewater service may protest the proposed service charges by filing a written protest with .the City Clerk which must be received (not postmarked) by the City Clerk before or during the public hearing. The• protest must be signed by the property owner or tenant: and must include the assessor's parcel number(s) or street address(es) of all property(ies) served. Only one protest per parcel will be. counted. Written protests may be mailed to the City Clerk at the address above or hand delivered to the Office of the City Clerk at 1 1 English Street, • Petaluma, California, 94952.. . rr 29 L zr . PRSRT STD U.S. POSTAGE. ' :./4 $. PAID n 1 "''r` PETALUMA, CA 1„ ; PERMIT NO.255 1 $5 City of Petaluma 11 English Street Petaluma, CA 94952 Notice of Public Hearing on proposed increases in Water and wastewater rates Protecting Public Health and the Environment Our aging infrastructure requires major rehabilitation and investment. A rate increase is needed to fund critical ,upgrades . that protects public health and the environment. 30 Attachment 6 N ri 1-1 Cr) 0l r-I 00 Cr 01 d- . N ro in N ni co 0 1 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 111111111111111111 , P M 0 O1 N rf) 00 0 LB rI m 1 Lf1 0 W rn 00 0 ••,1 N N e-I O M r-I O A--I VI CI L i)l 'en ri W to d ni Z _. 1 1 1 . 4 1 1 4 • 1 1 1 4 1 , 1 Cr) f-. 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K. Brawn and Marie-Eve Brawn •ClaRlitt “ 141 GrevilUa Drive � PR Z E tUiz q Petaluma, CA'94952 cP Q6- E2 octobdr 19, 2011 City ofPetalurna 11. English Street Petaluma CA 94952 SUBJECT: PROTEST PROPOSED CHANGES TO WATER AND SEWER RATES. The number of issues proposed to be covered at one hearing makes it IrnposSible,for the,.public to • provIdetornment 3 minutes per speaker is designed to avoid public comment 1 object to the following: 1. Water Rate Changes 2. Sewer Rate Changes 3. Automatic AdjUsiment to Water and Sewer Rates I d� not object to rates that ensUrethe water and sewer system Is kept in top working ,Order. I do object to add-ons hidden in the proposal. , — s • Please note: I am resident and ownernfthe property at theebove The Assessor Parcel Number 15 : 019-530-042-000. 1 objectto City Council making itself efacilltator forfeatherbedding by the SCWA and all number of add- , on functions thatare not directly, related to providing water and`sewer. The proposal just passes on all - the inefficiencies and ineffectiveness of the SCWA. I objectto being tOld pay up,or else. NOthingin the Hearing Notice'explains'the basis for the Increase in water rates If the is due to City Council allowing deferred maintenance to build up, then the 'City must state this. The noticejust passes alongthe Increase,dumped on the City by SCWA. • object to being prOVIdeif a set of rates with no justification for the tiers or rates. I,object to the use of water rates to force owners to give up their full supply so some Unjustified growthin newWater users can be accommodated. I waterrates being,used to subsidize other water users'. I object to rates that do not, recognize the difference between resIdents,having no gardens and those that do. The rate structure completely fails to comply with the General Plan objectives for the City of Petaluma. • • - 32 I objectto,derelictidn ofdtity by City Council to hold backunwarranted rate changes:by proposing an • 'atitotriatic", mechanism to increase rates without a hearing: This isidereliction'cif duty to the residents of • Petalum'a, at it worst. Iftity Council will not stand up for the interests,of the residents, it serves no • practical purpose. Tlie•SCINA has allowed the,Petaltima Aqueduct to exceed its design lifespan. instead of securing . that would, replace this.,ctical supply, It has wasted funds on planning to plan a plan. In short it has nothing toshow„as funding•ora replacement for the aqueduct. It has no•funds Set aside. Instead itlhas concentratedronipersonnell and now has,arnong•the fattestcats irithe.County on its payroll and givesthe • highest retirement benefits. City Council has done nothing to stop thls,politically connected animaltrom rnilkingthetity rate payers. Again, I do not object ,to rates that ensurethe water and sewer systerns,are maintained at.optimuriv conditioris: So, please do not attempt to cast my objections in thisrlight. You have not provided needed if the Increased rates are somehow justified. Sincerely, • ofk . Richard and Marie-Eve Brawn Property Owners ( • . „ • 33 LateJ D uotivinient ' geAntia/ Itny # 1 . A ;,v,z627 28 October 20, 2011 rtY ' City Clerk ni A rs 11 English Street Petaluma, CA 94952 av 460 (17 iSP S431 ZiO To whom it may concern, 1, Christine Nordstrom, 1825 Sandstone Drive, Petaluma CA 94954 do protest,thd rate increaseof Water and Wastewater increases- I am 68 years old and live on a fixed income 'of $2 900.00 a month and can not afford an increase in water aad wastewater rates. Sincerely, JAA1LL Christine Nordstrom • (4' • 34 • Late/DockfivnieA/Le' 74geirwi,ciTh It .74 ( 1.9 October 2011 City Clerk • 11 English Street Petalunia, CA 94952 • I am writing 'this letter to protest your proposed , rate changes. 1 feel that this is a • sneaky way to bump 'customers into a, higher usage tier, resulting in more than the alleged 18% increase on each water bill. I find your study very misleading. When I Moved to Petaluma 1 never thought I would have to budget for water; My 0 water bill is more than my carpayrnent. • Kevin McClanahan 901 Maria Drive 8 c 3 - s • Petaluma 94954 oc 2:1; • a& n3 t/20 m vs 8 1- r - 35 Lett.:DocAA/1,4, iteA/11/#1'..A . • 1 \22-232483,' • , . -"C L4":/v., C f?r•' s , 6 (76- • . • , OCT CP " 2 011 f is2 3 t=7.. • WrIty. , L = . 1 1 • L;41'; - L cf7 • 3, raiZot,t - r e / 146 AAG uu,si E r • cu li E 'T P ei L.. owNtib • c , • • ?Co ' orG eus .E-3 Sery Li c lApt-Tro ;iv c•12,f E_ C Ck y OJA 5rt LA,-;ter Sle...r" V k C 6- , 7 - 1 - c) C 1 L I 1 ,„ r ro - • , "" • • o S C p A (2)(2t; 36 (At tP, OGOAtideArLt OCT 2011 (s) • 74-c/nicloilte/wfr# A Orr ' CITY cLE -P.RTALIThont City Clerk 3 Act) 11 English ,St. /I/0 16 8 • Petaluma, Ca 94952 Topic: Water-Waste Water: rin writing to protest the increase in my water- waste service. I have always protested the increase to.my water-waste bill. If the Council had not allowed the'over building in this little river town, we wouldn'thave so much of our water and added waste usage. • Also, we have thousands Of Illegals coming in with huge farnilies using our utilities, and .our Welfare. I'm a 3r generation Californian, and I have worked since I was 12 years old, and now I have retired. I had only one child, andhe just retired from the Air Force. I have never lived in a new house, I always lived in used houses, why can't other people that come here do that? Our antiquated water pipes, and sewer can barely stay usable. One more problem is, if we keep building and adding more cement to our Ian d, there will be no soil to abSorb our rain, then the flooding will come again to our town. • Thank you for reading this, but I doubt if this will wake up anyone. Cherie Gervais AIIP wr /2(A,L_$2 , . charts Gervais Ist CrEiSta Dr. 63:3531311'r. POtallIflia, CA94952 ,ezemeijos - • 11. ' - - 37 ' ' • '''' "" • ' ' ' '" • . . .. ...... , ,.. .„.:„ -i‘. :,,!.•,, ,'. - • ..' , r' • • (1A‘liL\I V.: : • • /"'. • ; ..„.. . . .1,. . . . i-r- 1 ■ . ' , .. •;: ' ., . ' 1 t±w\A6W.v, ‘)- N&. (c).atha _,•- - • . • , - A ' - • ...,.. ,,,,, '''',„ ... : 1,: . -. ' .'.. ...',:,..*oLt4A(A/■•.... f)1..-____) l'Ai.4:(0.1.6._„ , .. ..„ • , r' t ' : •.' IL i: 640..)ika-1._ Avi(41(4.4._., :. 71\..., ...\-_ GILlit..: 'H . ,. • ,-,f,.., , -, , w , 41x,k_____ 6w h0 lb:)&ik04,10Lic4._(.5_LtA.-)5. - '1';\6,A _ ,. : ... ..,. . ,. Hittiv\k■vl. A.s. -\.s : . . . ., 1 41 • ..• • . • .. :•• .,...,. . . . .. __. 4 Per---- ' ' . ' P\\94\_5 k- . 1/1)e._.\,:_k_1(1.Q I_ .._•• .: - " '9 , • . . Hi . l i l l'i. 1)13744 • (•4 ,. ' ,•,•---. , - • I I I ' {.3\ %\ N ' 1 016..2 - . . . s , s • . I " •• ' • '' ' . ' .11; •.- .• - • • . . : • ,__. : • ..., , • . ,, ..„, ,, ,,, , ,,, • ,_,..__._ •,, , • ,„ ,,,,,...... .,.,..------ - ." • .:-- , — , , _ _ ., " ' ' ' 1 . ' • . ' :- . ,, , , ,. 1‘ ,. • , ' . • , . — , — 1 — ..- • • , I . • ' . ' ' • . ' . , , - , - -; . . . . • 1. .., •••_ - ___ -..,,•,,,,•,.. ___ „ . - • — - ---. . 38 • . i. .• l'',. .. , ,, , Oct. 23, 2011 Q 2526. 4 4 Petaluma City Clerk 4> OCT 2 0 1 1 -6P. 1 1 English St. Petaluma, CA 94952 PE TALUMA cu CITY CLERK 0 , 0 > ' 2,1 1 protest the water and sewer rate increase in Petaluma and would like to be advised of all future discussions, public meetings, hearings etc. on this subject. \c_4 Debbie Rosson AP#006-083-028 700 Ic..eokuk St. • Petaluma, CA 94952 39 City of Petaltnna October 26, 2011 11 English Street Petaluma, Ca 94952 To Whom It May Concern: This letter is to Protest the proposed increase in our City and wasteVvater services. We believe that= have already had our rates increase substantially since upgrading the Ellis Creek Water Recycling Facility, andthat our government is nickel & dimming us to death! 1;6 oc 209/, .92 cer vItazi P ZIAtr 71 ,_ 4,9 -Ana CP) `Vys le /el I ISA C -ra Si,c rely, I Jo C 15S ouarm agg 1509 Abercrombie Way Petaluma, Ca 94954 40 • •Jani John Cunningham 1 , 108 n Stincrest Hill Drive • nQA 2526 ?? co) • ' • ' „ Petaltirna, CA 94952 e l; n .• 41, „ October 26 •2011 • Lier ;-&) • '-4P. 'I Petalinita Cityfouncil OZ.pb•., • 17A. 1 462 1 7 47 ..,k ' Petaluma CityHaIl • • ; 11"English Petaluma, CA uta • Dear Council members, • • We received the letter regarding the rate increases for water. We read the information about • improvements and know that our infrastructure needs improving, hence, rate increases. We do have 'issues with the proposed annual wastewater increases. We have been in business where we were tied to an annual rate increase that was connected to a.lotal table. Our experience with the increases left a bad taste. We were held to something that locked us intoan inflated rate for a long time.. We are not proponents of your suggested 'automatic rate increase. We have a serious financial problem in this nation that makes me wonder how you think we citizens would advocate an automatic increase of a coSt that does not reflect in any way what is happening in our financial lives? It makes me think of a scenario•where we citizens say, "Sure, raise out taxes whenever you'd like." 1 don't, think automatic raises in services should become the norm. - I hope you will consider our opinions and.not ignore them if you disagree. Surely we are notalone. " I • Sincerely; 4 John and Janice Cunningham j LP. • ,2g,Z9 30 1 N 11 i t �, P Y 'y i+.. 4 r�• z rll 1E� 9l �� .;.:.i.::::!•,..!•••:'•i:.:::....;.:I•elli.::1:::::'..:1......-....::::'..;1:....,:!;.‘‘'.:,•:..:1,q1,i.,.:::`•;.1;:i...!:::'•:',:•••'•::';':.•;,';;:,:;;;;;:ii;-:•,;•.,•:.•:,.-.‘:•::::',..!:.:):::!;,:::...E'i).;;i..:::14,,;:;11.},iiii:I.E!!,:::i.::::Z:::::',3,:!::::-...:.;.'::::::::'.::'....7:::' '''::: ,,,••'',..,....::••,,..'::-....:.•:::::.:::'...::::''''' . ' 1 • ,' C LL.. . ' . - %.,..,Z..t. .-: ..:„:1;."...r.:1'.',.',.-.......':.t: .f,'''''. „ , . :'..... -',1::.:.1! . .,.. ,.':-.-.,.•:::-::/iptift,), . : ...-........ .f ... .....' 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'•-•...t1:::.:'::%‘-:li:.:1:',::::•i',•:,':,..0-..,'ils::::••:4:;;I:-.4*,:.71.3,.--EM:;;;;.:".:..:::..Cit,7,.v ,IIT:'.:.:'1..,,.-:..:•-:••••• ...',"'„ '••••—•, • . .......„,,,,•,,,.,..:,, ..:i.....:.....,...-.......:,:, ,.,-,.. .. -, : . , , . . '.• - .'' . ..-,..40,--5..?.7 .. ','....;••::::::::,•.",„''..-•.,:.:.•::- ::. • . ,• ' ,•.:,f,•<-71.-'•• -11.4'?°^,- ,.... ...." „ ;, -,, '''',a•',7,7•,"•• •":•-•• '' • f •, '• •SLi'',..,,s,..,:•••:..;',',V•••'••••••:•':'' : tv.•.s.,,,m77?,::;:::•••Y•:••;;•'. - . ' k„,-,..f,-.!:-...:L.'..... , „.., ;,.........,t,.,....:,,,k,:,,,,,.„..,:„....,.,...„:„..,;....„::::.•:.•,.„•,,,,,....., •. . ....: ...,,. ! : 7::.. - / .1°. le ! ` • 42 • .• • r• JERRY ROSENTHAL • nSgg303/ • „ • < „,e■, 1505 SARKESIAN DRIVE 'V OCT = 2011 • PETALUMA, CALIFORNIA 94954 co c p • c•-•:1 c•-1 Prriz 707-762-4130 . e \ r t) 10/28/2011 , )411 91"gi•V Vtd • City Clerk; Council, Nlayor,•City Manager, etc., I PROTEST the proposed increases (taxes). Clean up the WASTE firStl A prime example is the new waste site 15+ street lamps (that light.up AFTER the gates are closed). 30+-parking spaces (never More than 4 used at a time) (plus cement tire stops) A big bus turn around ( no buses) • Sidewalks to nowhere • Bathrooms without ANY supplies A PERFECT paved entry road abouta quarterrnile long (a closer entry is less than 30 yards from • the office). (AND street is the king of potholes) An extra gate has been.put in halfway to the office (??????????) The city recently put a 6 footWide and 6 inch thick pethWay the entire length from one street to another • next to the creek at the community center. ' The large pond at the community center has no filter and is Polluted. The surrounding sidewalk is • Covered with fowl,crap. The tennis coats atLucchesi Park ere mostly used for soccer. (although a sign says tennis onlyIn: English , and Spanish.). Theimprovemehts" oriTethltima•BouleVard have KILLED parking and treated a trafficbazard. land yoir • • • wantto do,the.sannetO the rest of the boUleyard? ) If yOuwantto save money : do away city employees and bid the jobs out to private companies like the garbage company. Keep the police. especially our GREAT chief --and our fire departerients. Keep the City Manager and Clerk. Bid all the rest out to private companies (all ihe city departments). Thank you, 41011"1 43 • PROTEST AGAINST PROPOSEDWATER RATE'CHANGES OCTOBER 2520.1 �.� 143 31 f7 • CITY CLERK ACT 2Q1 -s • 1'1 ENGLISH:. STREET . l p ��yy _ i Iu . PETALUMA 'CA o-� :• o - 949152 l� ti��� • 1 ! 11 9 /.5I, ti C i l TO WHO IT MAY CONCERN:• . WE RECENTLY BOUGHT A HONE IN PETALUMA AT'741 ELM DRIVE, AND WE • WERE SHOCKED TO FIND OUT.HOVIW HIGH,; PETALUMA'S WATER RATES'ARE • COMPARED 'TO; WHERE WE, OWN ANOTHER HOME. 1F WE HAD :K NOWN' THE . : • WATER /SEWER CHARGESWERE SO HIGH, IT' WOULD HAVE CERTAINLYBEEN, A STRIKE AGAINST US BUYING ;HERE. • WE ARE FIRMLYOPPOS•ED TOANY INCREASE IN :RATES FOR'WATER AND SEWER. • MY INFORMATION: • ........:. • LAWRENCE°TINDALL• • " 741 ELM DRIVE PETALUMA,,CA . • 94952 THANK YOU .FOR YOUR CONSIDERATION, L "AWRENCE TINDALL • - t • • • • 44 , . 1 ir : . Jerry '8,c Joanne Frazier 1716 Annetta Dr Petaltuna,. CA. 94954-3708 n %V31 123. . , E-mail J.J.FrazieraDatt.net Phone 707-789-9501 Cell 472-1972 r •11 1/4 " 4 '''-,5 - _ _ ko NOV 2011 . Er) cvt n - czy climic October 30, 2011 `Z-:.'>' PE Q • c--•„... et4 " vca61 : . , , , Petaluma City Council . Re: Rate Changes • I am strongly opposed to further rate increases. As guardians of our treasury, you are you are responsible for the prudent spending of our money. As you pointed out in your "Noticeof.Public Hearing"' letter, our city has been • providing wastewater service for over 65 ,years. Our present new facility has`been completed'for ' over two years. I think .proper oversight of our bond sales receipts is in order, don't you? You have been steadily increasing our rates over the past years in monthly billings, 1 suspect, unlawfully and now you want .us to believe proposition 218 gives you the right to raise our rates even more. I don't think so. Re-read prop. 21.8. ,,- - f ; Our city manager needs to do his homework and copy from ltis predecessors on hoW, to manage our money more proficiently. Your reason for rate change is bogus: It doe's not take into consideration the rate changes you have been Slowly and probably illegally making overthe past few years. Our planning department needs to leant how to plan improvements witheut throwingthe rate payers under the train. Every time I have to ; • paint or put a new roof on my house I can't cry to my neighbors and ask for money. I , . have to budget for it and so should you. You can famish all of the tables (5) you wish and after you are through, the fact remains; • you are net doing your jobsIn the best interest of your community. . • , , . , ,iti• 2 , Jerry Frazier 1716 Annetta Dr Petallnna 007-556-003-000 . = 45 „ , • • . . t ' „ . • , • • , - Roy Redlich 1 503 Central Avenue. 1 Petaluma, CA 94952 / 707-763-5841 e. -1 an 0 f a9b, ' l b] • A '(/ ' , ,, -- Ir . ,..1 ' . sj. October 23, 2011 • r.":') N61/ ' 2011 13 )' • Petaluma City Clerk, e•-• ? tau --, RT,Az ' ' • I'm writing to protestthe proposed water and sewer increases which .the City of .42E • , Petaluma proposes to charge its residents. Please take a look at the graph below whic shows our water consumption and our sewer/water bill over a ten year Period. • As you can see we've done our part to reduce consumption but the costs have continued to go'up. • 45,000 , $350.00 1.: • 40,000 n t . 503 C entra l A ve ,,, /1- $300.00 , nue It Le/ i 1_1 35,000 - IA 4-- / 1 - ' . 1, r - TA ... ) 1 r A i ' tvi'll $250 'ii,_,_ .00 • ' - 60,000 • - ' ° g,.k - , ' ' , glitiMI JP.! 441;41 ' 1 ' '''' A v't . ., be4.„ A ,:._ jo t k # - $200.00 25000 20,000 15,000 . • • --„Gairons .— Bill Amount • - $100.00 10,000 5;000 $50.00 0 i i , , i •. , . . $- • • . . o ,--- (V Cr) "I' 10 CO t■ CO 0) 0 0 0 0 0 0 0 0 0 0 . 1, 1 I s • I I 1 8 g i 8 8 8 8 (0 (0 (0 (0 (0 ,. . .. " . r ,, M . 2 2 2 2 2 • 2 - 2 . . , . . . I protest city policy that increases the fees for households that are reducing water use As an alternative to the fees of homeownersi would suggest thatfees to • • businesses be increased. Companies like Lace House Linen and SOLA optical have illegally sent chernical'waste into.'our sewers and have only faced mild financial consequences from those actions. • , Sincerely, ' 7 , \ p4 0__ 1 Lit Roy R‘dlich ' • .._ .,, • • qi . . , • . �y 67,8 910 November 7, 2011 3 NQ ! a V 2011 C _.. C lerk , ��, C;�. City s 4 11 English Street � r9 �� � . Q Petaluma, 'CA, 04952 City Clerk; . We, the undersigned, strongly protest the proposed Water and Wastewater Rate Changes as outlined in the Notice of Public Hearing to be discussed December 5, 2011. . Scheduling price increases based strictly on time, using a consumer price index ( or such an index plus some percentage) has no relevance to reality. We believe such increases when needed, should be brought before the community, with facts to show why there is such need. Asking for increased rates on a calendar basis is not done in business, and our water system ought to function on a business -like. basis. Is it inconceivable that rates could drop, by use of more efficient machinery or improved manpower utilization? When funding shortfalls occur; we the customers of the: district should be asked to pay. 1 believe most citizens would agree that the 5.. yr proposal with automaticspending `increas es ... stretches credibility. This is tantamount to giving,a blank check to the district with no �." overs . Sincerely • Mr. & Mrs. James A. English 133 Dublin Court ,` "17 , November 9, 2011 ,....---- ., ig aa • , 4 ' 4 to , City Clerk . •%:- , Nov , -e,...‘ . 3 elpr u/9 g 11 English Street, 4211 402i ttt Petaluma, CA 94952 ca , A) • weclit 1_, , . • , . City Clerk We, the undersigned, strongly protestthe proposed Water and Wastewater Rate Changes as outlined in the Notice of Public I-leafing to be discussed December 5, 2011. Scheduling price increases based strictly on time, using a consumer price index (or such an index plus_ some percentage) has no relevance to reality. We believe such increases •when needed, should be brought before thecommunity, with facts to show why there is such a need. Asking for increased rates, on a calendar basis is not done in bu and our water system ought to function on a business-,like basis. Is it inconceivable that rates could drop, by use of more efficient machinery or improved manpower utilization? . , When funding shortfalls occur, we the customers of the district should be asked to pay. 1 believemost citizens would, agreethat the 5-yr proposal with automatic spending increases stretches credibility. This is tantamount to giving a blank check to the district with no , , oVersight. Sincerely; " 1 . - A . .-.t . . . Ii4A_ .... , Mr. & Mrs. Michael Stupi . ,, .. 123113' St t: - Petaluma, CA 94952 •.i,N,,,:, k: ‘:\ • ,,, , • '18 NOV 2011' r CirCLERK AD. 14 7 (41eAS 4:6 by Mat I diexx. 74, 4,(45 re ' ' ,40 he. iiv.01-e-46 4'63 • • 110 • 'fl ++ t e co +hat' it.e414 oLK 41.1. riakt+ b:cdtmci 414.(d-- get fe - hcilittArd \ s- . • 74/o4ver Voo , gra fIinj o)k.: clam .ictiP8,/- o cvM4ek. acgietalery . .heAT '15 +0: "fee1 v6.-076141 h. h cool froey 6,,F7 htc-cu ct s Yoo ecc h my iS +volt) le .and 'y \J+ -14 40 rett the ogmKtou4171 low +1.11 'we cah Ge • LifWvaC eccoincionft,y - V•Ytne:" 9 • V%) 1 47 . ; ,.. ( ; ... i! , :;I, I •I i; i ' '.i Lir I f fAin, Ni..- ,: : . ; .? ' ''... 4 tfl •-):: X wN.Z Q 01 • USA IIRST-fLASS rouvra .,: v.:...1,1,'"' • '. _ •- !' c..) 4.-i" '„.?:i ._.- _ it... . - __. _ _ ..i4; . .al • Jr '44 ; 0 .,--) ILL) C‘i (:c9 ,111 ill ift e ,ge. CV .>' ..x E 50 - ‘-- T"' d ' . + 5-2. 4vJrz 4.1F /. - -s4 5.7e 1 645 of .i, G. t -X x:a' b WJ' r, .54 p '�.- gy p.. f 2 J '11 IF r J' > GJK ,�2�31415 November 15, 2011 p'�� C 2 411. Office of the City Clerk ti City of Petaluma s ' ti 11 English Street ti Petaluma, CA 94952 ! `�'a£SZgZLti� Subject: Written Protest of Proposed Increases in Water and Wastewater Rates Property Address: 1645 Putnam Way,, . Petaluma, CA To Whom It May Concern, This letter serves as a formal: written protest of the proposed increases in water and wastewater rates and changes to the current :rate structures. Petaluma water rates have continually increased over the .past few years and enough is enough! Given= the current economic situation and the fact that so many of us are unemployed and struggling to survive we feel it is completely inappropriate to raise our water rates at this time. Few, if any of us, have been given additional compensation due to Bnflation. Our water rates have been the topic of controversy for years. Maybe the city of Petaluma should have considered our aging infrastructure. and the need. for _major • rehabilitation and investment 'prior to building the new water treatment facility. we feel it completely inappropriatea structures this g to �mc wastewater water and rates or make any changes to the current r to struc time. Sincerely, j ` �. 1.X C,G Jill :& Allan Berger 1645 Putnam Way, Petaluma, CA °I I p N f '' ' ^ ` t Z> 5/