HomeMy WebLinkAboutR-10637 - Establishing the water rates and drought surchargeRESOLUTION NO. 10637 (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING THE WATER RATES AND
DROUGHT SURCHARGE
WHEREAS, it is the policy of the City of San Luis Obispo to review enterprise fund fees
and 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 analysis of Water Fund operating, capital, and debt
service needs has been performed for fiscal years 2015-17 through 2019-20; and
WHEREAS, this comprehensive analysis has been revised based on updated revenue and
expenditure information; and
WHEREAS, current drought conditions and the Governor's Executive Order to reduce
water use by 12 percent have been taken into consideration when evaluating consumption and
water revenue; and
WHEREAS, the Council has reviewed the water service rates necessary to meet system
operating, capital, and debt service requirements under current drought conditions; and
WHEREAS, the Council desires to modify the existing water rates and include a drought
surcharge; and
WHEREAS, the Council authorizes the Utilities Director to reduce the drought
surcharge, should revenues surpass anticipated revenue levels; and
WHEREAS, a public hearing was properly noticed and held on June 16, 2015; 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. Resolution No. 10442 (2013 Series) is hereby rescinded, effective 11:59
p.m. June 30, 2015.
SECTION 2. The water rates set forth in Exhibit "A" are hereby adopted, establishing
water rates and drought surcharges effective July 1, 2015 and July 1, 2016.
SECTION 3. The water system access charges for emergency purposes, such as fire
protection, are increased from $57.66 per month to $68.60 per month, effective July 1, 2015 and
$79.59 effective July 1, 2016 to reflect the increase in water rates.
R 10637
Resolution No. 10637 (2015 Series)
Page 2
Upon motion of Mayor Marx, seconded by Council Member Christianson, and on the following
roll call vote:
AYES: Council Members Christianson and Rivoire,
Vice Mayor Ashbaugh, and Mayor Marx
NOES: Council Member Carpenter
ABSENT: None
The foregoing resolution was adopted this 16th day of June, 2015.
MVan an Marx
ATTEST:
Anthony Mejia
City Clerk
APPROYED AS T
i
pristine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this j / day of V/+ , 0 --Lo (1 0.
lfil c�
Anthony J. Mejia, MMC
City Clerk
R 10637
Resolution No. 10637 (2015 Series)
EXHIBIT A
MONTHLY WATER SERVICE RATES
Rate Basis
Base Fee
Current
$5.28
July 1, 2015
$7.63
July 1, 2016
$9.98
Drought Surcharge
$0.00
$0.37
$0.74
Volume Charge
0 — 8 units
$6.92 per unit
No change
No change
Tier 1 Drought Surcharge
$0.00
$0.98 per unit
$1.10 per unit
9+ units
$8.65 per unit
No change
No change
Tier 2 Drought Surcharge
$0.00
$1.23 per unit
$1.37 per unit
1 unit = 100 Cubic Feet = 748 gallons of water
For service to customers outside the City, the water rates are two times the "in -City" rate.
Recycled water charges are 90% of potable water charges.
Page 3
R 10637