HomeMy WebLinkAboutR-11427 establishing the Water Service Rates for Financial Plan 2023-25R 11427
RESOLUTION NO. 11427 (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING THE WATER SERVICE RATES
FOR FINANCIAL PLAN 2023-25
WHEREAS, it is the policy of the City of San Luis Obispo to review enterprise fund
rates on an ongoing basis and to adjust them as required to ensure that they remain
equitable and adequate to fully cover the cost of providing services; and
WHEREAS, a comprehensive water rate study was completed in April 2023 by
HDR Engineering, Inc. including analysis of Water Fund operating, capital, and debt
service needs for fiscal years 2023-24 and 2024-25; and
WHEREAS, on May 16, 2023, the City Council reviewed preliminary water rates
based on updated revenue and expenditure information necessary to meet system
operating, capital, and debt service requirements; and
WHEREAS, 27,175 notices regarding the proposed rates were sent out in April
2023 in compliance with Proposition 218 requirements; and
WHEREAS, a public hearing was properly noticed and held on June 6, 2023; and
WHEREAS, a majority protest, as contemplated by Article XIII D of the California
Constitution, was not received by the conclusion of the public hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Water Rates and Water System Access Charges. The water rates
and water system access charges set forth in Exhibit A are hereby adopted, establishing
water rates and water system access charges effective July 1, 2023 and July 1, 2024.
The cost of service does not exceed the proportional cost of services provided to the
correspondence customer parcel and the revenues derived from the fees will be used for
the provision of water services.
SECTION 2. California Environmental Quality Act. Modification of rates and
charges by public agencies is statutorily exempt from the California Environmental Quality
Act (CEQA) under Public Resources Code 21083 and 21080(b)(8) and State CEQA
Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) because the change in
rates and charges is for the purpose of:
a) Meeting operating expenses;
b) Purchasing or leasing supplies, equipment, or materials;
c) Meeting financial reserve needs and requirements;
d) Obtaining funds for capital projects necessary to maintain service within
existing service areas; and
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e) Obtaining funds necessary to maintain such intra -city transfers as authorized
by City Charter.
The change in fees is not intended to fund expansion of capital projects not otherwise
evaluated under CEQA. Therefore, no environmental review is required for this item.
SECTION 3. Resolution No. 11257 (2021 Series) is hereby rescinded effective
11:59 p.m. June 30, 2023.
Upon motion of Vice Mayor Marx, seconded by Council Member Shoresman, and
on the following roll call vote:
AYES: Council Member Francis, Pease, Shoresman, Vice Mayor Marx, and
Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 6th day of June 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
Markie Kersten
Assistant City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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6/12/2023 | 7:57 AM PDT
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R 11427
EXHIBIT A: 2023-25 WATER RATES
Usage (per unit cost) Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single Family Residential
Tier 1: 0 to 5 units $7.94 $8.54
Single Family Residential
Tier 2: 6 to 12 units $9.16 $9.84
Single Family Residential
Tier 3: 13+ units $15.79 $16.97
Multi-Family $8.91 $9.58
Non-Residential $9.43 $10.14
Landscape Irrigation $9.63 $10.35
Base Fees Proposed Rates
Effective July 1, 2023
Proposed Rates
Effective July 1, 2024
Single Family Residential
Monthly Base Fee $28.15 $30.25
Multi-Family, Non-Residential, and Landscape Irrigation by Water Meter Size
0.75-inch or less meter $28.15 $30.25
1-inch meter $47.00 $50.50
1.5-inch meter $93.75 $100.80
2-inch meter $150.05 $161.30
3-inch meter $281.50 $302.60
4-inch meter $469.25 $504.45
6-inch meter $938.25 $1,008.60
8-inch meter $1,501.25 $1,613.85
Water System Access
Charge $100.93 $108.50
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