HomeMy WebLinkAbout05/23/1995, Agenda & MARSH STREET REPAVING PROJECT & WATER FUND RATE REVIEW II
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ADJOURNED
REGULAR MEETING
COUNCIL AGENDA
Tuesday, May 23, 1995 - 7:00 PM
Council Chamber, City Hall
990 Palm Street, San Luis Obispo
CALL TO ORDER: Mayor Allen K. Settle
PLEDGE OF ALLEGIANCE
ROLL CALL: Council Members Bill Roalman, Kathy Smith, Dodie Williams
Vice Mayor Dave Romero and Mayor Allen K. Settle
PUBLIC COMMENT PERIOD (Not fo exceed 1.5 minutes total)
The Council wehmes -your input You may,; address the 'Council by completing a
speakers slip and gwmg to the;City Clerk prior to the meefing Af this time, you may
address the Counc�i;on items that are noton the agenda or items on`th;e Consent Agentla
Tirne<Gmd is three minutes State=taw does not'allow. Council'Jodiscuss or take action on
rssues not ori the agenda, except hat members of the Councii or staff;may briefly respond
to statements made>or questions posed by persons exercising their public testimonyrights
(Gov Code §54954;2) Staff may be asked to foilow-up on such Mems Staff reports and
other.wntten documentation relating to each item referred to oR this:agenda :are on`file in
f the City Clerk's Office m Room #1,' of City Hall
P.C.1. Paul Orton and Donna Chan presented a park project for the Meadows neighborhood
to provide traffic calming as well as recreational space.
CONSENT AGENi7A
The Consent Agenda is approved on one motion Ca:.uncil Members may<pull consenf
items to be considered after Business Items
► C-1 CONSULTANT SELECTION - MARSH STREET REPAVING PROJECT
(McCLUSKEY/95-32)
Consideration of authorizing staff to negotiate, and the City Administrative Officer to execute
an agreement, with Willdan Associates for the preparation of plans and specifications for CIP
#95-32, "Marsh Street Repaving Project," in an amount not to exceed $60,000.
1
Council Agenda Tuesday, May 23, 1995
* RECOMMENDATION: By motion, authorize staff to negotiate and the CAO to execute and
agreement with Willdan Associates.
*McCLUSKEY FINAL ACTION. Approved (5-0).
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C.L.R.1. Council Member Romero reported on the North County Council Executive Committee
meeting in Atascadero.
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PUBIC HEARINGS
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1. WATER FUND RATE REVIEW (MOSS/STATLER/516 30 min.)
Public hearing to consider increasing water rates by three and one-half percent(3.5%) effective
July 1, 1995 and three percent (3%) effective July 1, 1996.
* RECOMMENDATION: Adopt resolution increasing water rates.
*MOSS/STATLER FINAL ACTION. Resolution No.8420 adopted as amended to increase water rates
by 2.5% effective July 1, 1995, and 3.0% or consistent with the CPI effective July 1, 1996 (3-2,
AS-no and DR-no).
► 2. SEWER FUND RATE REVIEW (MOSS/STATLER/525 - 30 min.)
Public hearing to consider increasing sewer service charges by six and four-tenths percent
(6.4%) effective July 1, 1995 and six percent (6%) effective July 1, 1996.
• RECOMMENDATION: Adopt resolution increasing sewer service charges.
*MOSS/STATLER FINAL ACTION. Resolution No. 8421 adopted as amended to increase sewer
service charges by 4.5% effective July 1. 1995 (3-2, AS-no and KS-no).
2
Council Agenda Tuesday, May 23, 1995
► 3. GOLF COURSE FUND RATE REVIEW (LeSAGE/882 - 30 min.)
Public hearing to consider setting golf course fees for 1995-97 as follows:
July 1. 1995 July 1, 1996
Senior/youth weekdays $4.50 $5.00
General weekdays $6.50 $7.00
Weekends $7.25 $7.75
♦ RECOMMENDATION: 1) Adopt resolution setting golf course fees for 1995-97, and 2)
approve a one-time general fund transfer of$68,700 in 1994-95 to bring the golf course to full
enterprise operation status by 1996-97.
'LeSAGE FINAL ACTION: Resolution No. 8422 adopted and general fund transfer approved (5-0).
COMMUNICATIONS (not fo exceed 5 minutes)
At this Ume, any Council Member or the City Administrative Offcer may informally update:
the City Council on communicafions and ask for comment and/or discussion Due,to State .
law, formal action or approval may not be: en :'Aa ion;on mems maw a scheduled:at the..
neA Regular meebrTg
COMM.1. Council Member Williams brought photos from the Paul Spangler Fitness Trail.
COMM.2. Council Member Smith complimented staff on their booth at the recent Chamber
of Commerce mixer and praised Kathe Kleiman for her work on the booth.
BUSINESS ITEMS
► 4. TRANSIT FUND RATE REVIEW (McCLUSKEY/549 - 15 min.)
Consideration of "Changes in Fund Balance - Transit Fund" projects revenues and expenses
for the transit fund over the next four years.
♦ RECOMMENDATION: By motion, receive and file.
McCLUSKEY FINAL ACTION: Received and filed.
3
Council Agenda Tuesday, May 23, 1995
► 5. PARKING FUND RATE REVIEW (McCLUSKEY/552 - 15 min.)
Consideration of"Changes in Fund Balance - Parking Fund" projects revenues and expenses
for the parking fund over the next four years.
♦ RECOMMENDATION: By motion, receive and file.
McCLUSKEY FINAL ACTION. Received and filed.
A. RECESSED TO CLOSED SESSION
CONFERENCE WITH PROPERTY NEGOTIATOR - pursuant to Government Code
§ 54956.8
Property: 970/972 Nipomo St.
609 Palm St.
530/582 Marsh St.
Negotiating Parties: City of San Luis Obispo:
Michael McCluskey
Property Owner Representatives:
Jerry Holland (Nipomo St.)
Real Estate Group (Palm St.)
Bob Henderson (Marsh St.)
Negotiation: Whether to Acquire
B. RECONVENE IN OPEN SESSION TO REPORT ON ACTION TAKEN.
FINAL ACTION. No action taken.
C. ADJOURNED TO FRIDAY, JUNE 2, 1995 AT 9:00 A.M. FOR NACIMIENTO PIPELINE
TOUR.
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IIIIIIIIIIIIIIIIIIII IIIIIII I Agenda Distribution List
CP0� J
VN l WIS O�� (3/30/95)C
I, Unpaid Subscriptions:
(All mtgs.unless o/w noted)
AIA President
COUNCIL AGENDA ASI President
Tuesday, May 23. 1995 - 7:00 PM B.i.A. , Kay Mickelson
Council Chamber, City Hall Chamber of Commerce
Cuesta College/K. Roberts
990 Palm Street, San Luis Obispo Dick Cleeves/Chamber of Comm.
H.Ovitt, GO Spvrs.Chair
CALL TO ORDER: Mayor Allen K. Settle Paul Hood, Co.Administration
Housing Authority
PLEDGE OF ALLEGIANCE KCBx
KCOY
KCPR: (2)Gen.Mgr.& News Dir.
ROLL CALL: Council Members Bill Roa KDDB
Vice Mayor Dave Romero KEYT
KGLO
KKJG
PUBLIC COMMENT. PERIOD (Not to exceed 15 n KSBY
KVEC
The Council welcomes your. input. . You may.:a Library (front desk)
speakers slip and giving it to the City Clerk priorti Mustang Daily
address the Council on items°that are riot on the ag New Times (front desk)
Time limit is three minutes. State law.does:not:.aild Pac.Bell/Brad Schram
issues not on the agenda, except that members:of t Pac.Gas&Elec.Co/B.Burke
to statements made or questions:posed by persons Planning Comm. (% Comm. Dev.)
So.Calif.Gas Co./Vic sterling
(Gov. Code §54954.2). Staff may be asked to follo Council of Govts./Ron Dicarli
other written documentation relating to each item r League of Women Voters
the City Clerks Office in Room #1of City Hall. Telegram-Tribune (front desk)
SLOCityEmp.Assoc/T.Girvin
SLOFireBattChiefAssoc/S.Smith
SLOFirefightersAssoc/D.Wunsch
SLOMMgmt-ConfEmpAssoc/D.Smith
SLOPoliceOffAssoc/T.DePriest
SLOPolStaffOffAssoc/T.Costa
Denise Fourie, CHC Chair
Citizens Ping. Alliance
COUNCIL LIAISON REPORTS (not .to:exceed 15 Earth Journal/Terry Dunnivent
Council Members report on conferences orother d ECOSLO/Bonnie teVelde
Res.forQual.Neighbor/C.Sanders
Sierra Club/Gary Felsman
SLO Prop. Owners Assoc.
F:Strong & Assoc. (The Citizen)
II,Subscriptions Paid or
Env. Provided (rex.mtgs,only) :
EDA (Engr. Development Assoc.)
Ellenburg Capital Corp.
Fugro-McClelland
Hawkins/Mark-Tell
Local Government Services
® Council meetings are broadcast on KCPP,91.3 FM. The City RRM Design Grp./LeeAnne
f its services, programs and activities. Telecommunications Devi+ Vista Information Services
V Clerk prior to the meeting if you require a hearing amplificatit•. Wallace, John L. & Assocs.
Walter Bros. Construction Co.
Willdan Associates
Council Agenda Tuesday, May 23, 1995
PUBLIC HEARINGS
1f you.have filled out a Speaker Slip; the Mayor will call you to the.podium.. Please speak .
into the microphone.and give yourname and city of<residence:::for the record. Please limit
your comments to 3 minutes; :consultant and project presentations limited to :10 minutes.
If you challenge the issue in court,you may be:limited to raising only.tho a issues:.you.or
someone raised at this public heanng as.described.below, or in,written correspondence
delivered to the City before:or during the,public hearing.
► 1. WATER FUND RATE REVIEW (MOSS/STATLER/516 - 30 min.)
Public hearing to consider increasing water rates by three and one-half percent (3.5%)
effective July 1, 1995 and three percent (3%) effective July 1, 1996.
• RECOMMENDATION: Adopt resolution increasing water rates.
► 2. SEWER FUND RATE REVIEW (MOSS/STATLER/525 - 30 min.)
Public hearing to consider increasing sewer service charges by six and four-tenths percent
(6.4%) effective July 1, 1995 and six percent (6%) effective July 1, 1996.
• RECOMMENDATION: Adopt resolution increasing sewer service charges.
► 3. GOLF COURSE FUND RATE REVIEW (LeSAGE/882 - 30 min.)
Public hearing to consider setting golf course fees for 1995-97 as follows:
July 1. 1995 July 1. 1996
Senior/youth weekdays $4.50 $5.00
General weekdays $6.50 $7.00
Weekends $7.25 $7.75
• RECOMMENDATION: 1) Adopt resolution setting golf course fees for 1995-97, and 2)
approve a one-time general fund transfer of $68,700 in 1994-95 to bring the golf course to
full enterprise operation status by 1996-97.2
2
Council Agenda Tuesday, May 23, 1995
COMMUNICATIONS (not to exceed 15:minutes) . ..
At%this-tire, any.Council Member or the City Admin istrative:Officer.may informally:update .'.
the.City Council on communications and.ask for comment and/or:ftcussion. °Due to State
law,.formal:.action or approval may not`betaken .:Achon::on items maybe scheduled at the
next Regular meeting.
BUSINESS ITEMS
► 4. TRANSIT FUND RATE REVIEW (McCLUSKEY/549 - 15 min.)
Consideration of "Changes in Fund Balance - Transit Fund" projects revenues and
expenses for the transit fund over the next four years.
• RECOMMENDATION: By motion, receive and file.
► 5. PARKING FUND RATE REVIEW (McCLUSKEY/552 - 15 min.)
Consideration of "Changes in Fund Balance - Parking Fund" projects revenues and
expenses for the parking fund over the next four years.
• RECOMMENDATION: By motion, receive and file.
A. ADJOURNMENT.
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�����uI�GI�IINIIII I�III�III City o f Sal ! tUIS OBISPO MEETING DATE:
��aqui �— Q — 17,9—
COUNCIL AGENDA REPORT ITEM NUMBER./
FROM: Mike McCluskey, Public Works Director
SUBJECT: Consideration of Consultant Selection for Preparation of Plans
and Specifications for Marsh Street Repaving Project
CAO RECOMMENDATION:
1. By motion, authorize staff to negotiate, and the CAO to execute
an agreement, with Willdan Associates for the preparation of
plans and specifications for CIP #95-32, "Marsh Street Repaving
Project" for an amount not to exceed $60, 000.
2 . Appropriate $60, 000 from unappropriated General Fund balance.
DISCUSSION:
The Marsh Street Repaving Project was brought before Council on February
28, 1995 for consideration, and adopted by the Council as a high priority
CIP project. Council directed that the project be constructed as soon as
possible, preferably during the summer season, but certainly no later
than and to be finished by Thanksgiving. The project brought before the
Council included repaving, bulbouts for handicapped access, a mid-block
crosswalk, and storm drainage lines to prevent future flooding problems
at the corner of Morro and Marsh. The City Council added to the scope of
work by including a new waterline replacement project, from Nipomo to
Chorro Street. Given the additional workload, staff estimated
approximately ten weeks of design work, prior to bid. This timing would
have yielded a beginning of construction time of approximately July 15,
1995.
Just ten days after the Council meeting approving the project, the City
was hit with a major winter storm. As a result of the damage suffered by
the City, all engineering work on existing projects ceased and an
emergency design effort was undertaken to prepare plans and
specifications for repairs to the City's infrastructure. All projects,
including the Marsh Street Repaving Project, were substantially delayed.
As a result of this delay, and the need to bid other projects which
depend upon State financing and have time line requirements of fiscal
year 1994, staff sought proposals from three firms, equally qualified, to
prepare the plans and specifications for the Marsh Street Repaving
Project.
The three firms selected to receive the Request for Proposals were:
Harris and Associates of Concord, CA; Willdan Associates of Ventura, CA;
and Boyle Engineering of San Luis Obispo, CA. Each of the firms have
multiple field offices and a very large and specialized staff. Each of
the firms does extensive municipal consulting work. Harris and
Associates and Willdan and Associates both specialize in municipal work
and represent numerous cities as both the city engineer and public works
director. All three firms submitted proposals to accomplish the design
work within eight to ten weeks, and all three firms estimated the number
of person hours estimated necessary to prepare the plans and
specifications at approximately 650 hours. Not surprisingly, all three
firms provided estimates to complete the work of approximately $55, 000-
$57,000, including surveying.
�����►�Hi�IIIIIIIIIP IIIIIII city of San h.-m S OBISpo
COUNCIL AGENDA REPORT
Marsh Repaving
Page Two
Staff reviewed the three proposals to choose the firm that would provide
the best service to the City. Staff chose Willdan Associates as the
superior firm for the following reasons:
1. Provided a highly detailed and accurate listing of job tasks, easily
identifying all work planned or included within the project.
2 . Assumed a review of the existing and proposed paving sections at no
additional cost.
3 . Noted in their proposal their experience in these types of projects,
and ways the overall cost of the project could be reduced.
4. As city engineer for a number of cities, they have extensive
experience in meeting ADA requirements.
Staff will immediately begin a finer detailed negotiation with Willdan
Associates to arrive at a final estimated contract amount. It is
anticipated that the contract will be based upon a time and materials
estimate, with a not to exceed contract amount. Staff anticipates that
given the amount of work already completed by in-house staff, that
Willdan Associates will be able to save a substantial amount of time and
effort by using the work already completed. By using a time and
materials basis contract, the City is assured that the existing materials
already used will be reused in the project and that the project will be
most expeditiously pursued by the consultant.
FISCAL IMPACT:
The cost of designing the project had been anticipated to be absorbed by
in-house staff and, therefore, the cost of consultant services is not
appropriated. It is proposed that the sum of $60, 000 be set aside from
the general fund unappropriated reserves as the means of providing
payment for these services.
marshrepaAng/mm4
� �i l` MY O f San LUIS OBI SPO M y
Maa23,, 1995
1
COUNCIL AGENDA REPORT NUMBER: /
FROM: John Moss, Utilities Director)'
Bill Statler, Finance Director
Prepared by: Linda Asprion, Finance Revenue Manager
SUBJECT: WATER FUND RATE REVIEW
CAO RECOMMENDATION
Adopt a resolution increasing water rates by three and one-half percent (3.5%) effective July 1,
1995 and three percent (3%) effective July 1, 1996.
DISCUSSION
Overview
Financial Plan policies require the City to perform an annual review of the water fund and adjust
fees and rate structures to ensure they remain appropriate and equitable. In September of 1993,
the Council reviewed a water fund analysis and adopted rates for water service charges through
1994-95. The water fund review in June of 1994 confirmed the rates were valid and that no
change in the previously adopted rates was required; however, this review did project a modest
rate increase of 3.5% in 1995-96, which is substantiated in this review. This report analyzes
the revenue requirements of the Water Fund for the next four years (although only two years
are recommended for rate adoption), based on the predicted 1994-95 revenues and expenditures,
preliminary 1995-97 Financial Plan, and the anticipated equity contribution from Cal Poly.
The level of the projected rate increases, comparable to the level of inflation, demonstrates the
effectiveness of past projections and maintains rate stability for the Water Fund. The revenue
requirements reflect quality planning for water capital improvement projects and operating
programs, and are consistent with rate objectives identified below. The Water Treatment Plant
upgrade was completed this year, and all debt service and operating costs are included in this
analysis. Also included is the Utilities Conservation Office and Water Distribution Preventative
Maintenance program, both programs a result of the strategic planning adopted by Council in
the Urban Water Management Plan.
The proposed rates for 1995-97 for all customers are provided in Exhibit A. Financial schedules
supporting the proposed rates are provided in Exhibits B.1 through B.3.
Background
The 1993-95 Financial Plan policies require the City to perform an annual review of the
financial needs of the water fund and adjust fees and rate structures as required to ensure that
they remain appropriate and equitable. Fees and rates are to be set at levels which will fully
cover the total cost of providing water services, including operations, capital outlay, and debt
service (B-8 of the 1993-95 Financial Plan). This report analyzes the revenue requirements of
����n�i��►►�IIIII���I I���II city of San b-.AIS OBISp0
COUNCIL AGENDA REPORT
the water fund based on the 1994-95 Budget changes and the preliminary 1995-97 Financial
Plan.
Water Rate Review Objectives
As adopted by the Council in May of 1988, the City's rate review should accomplish the
following objectives:
■ Comply with legal requirements
■ Ensure revenue adequacy to fully meet system operating and capital needs
■ Encourage conservation
■ Provide equity and fairness between classes of customers
■ Result in rate structures that are easy to understand by our customers and easy to
administer
■ Provide for ongoing review in order to facilitate rate stability
.This annual review of the Water Fund has been performed with these goals and philosophy in
mind. Provided in Exhibit B.1 is a summary projection of revenues, expenditures and changes
in financial position for the Water Fund through fiscal year 1998-99. This projection outlines
the operations and capital improvement budget for the Water Fund as presented in the
preliminary 1995-97 Financial Plan. The assumptions used in this financial position projection
are detailed in Exhibit B.2.
Based upon this analysis, a three and one-half percent (3.5%) rate increase for revenue purposes
is proposed for fiscal year 1995-96, and three (3.0%) for 1996-97. This proposed increase is
based upon a 30% conservation rate from our customers from the 1987 consumption levels,
which reflects the current conservation rate. The proposed rate increase is consistent with the
1993-94 Water Fund review which projected a modest level rate increase of 3.5% in fiscal year
1995-96.
Rate Setting Methodology
In determining water rate revenue requirements and setting recommended rates, the following
general methodology is used:
Step 1: Determine Water Fund revenue requirements for:
■ Operations and maintenance
■ Capital improvements and replacements
■ Debt service obligations (existing and projected)
Step 2: Subtract from this amount "non-rate revenues" such as:
■ Interest earnings
■ Connection fees and meter sales
■ Revenues from other agencies (Cuesta/Cal Poly)
■ Other service charges (service start-up fees, late charges, etc.)
i-ate
►�� i�i�ollllllllliP° ��llll City Or San IS OBISPO
Marms COUNCIL AGENDA REPORT
Step 3: Identify water rate requirements.
Revenue needed to be generated from water rates is the difference between water
revenue requirements (Step 1) and "non-rate" revenues (Step 2).
Step 4: Determine new rates.
Model the rate base (consumption and customer account assumptions) against the
existing rate structure and rate requirements identified in Step 3.
Because we perform this analysis over a multi-year period, other factors are considered such as
fund balance available to support capital projects, debt service coverage requirements, and
minimum fund balance policy.
Summary of Key Assumptions
Based upon the assumptions in Exhibit B.2 and the factors discussed above, the financial position
projections indicate that water rates require an increase of 3.5% in 1995-96 and 3% in 1996-97.
The following is a summary of key assumptions for expenditures and revenues:
■ Water conservation from 1987 levels to remain at 30% for the next two years (1995-96
and 1996-97), and to decrease to 27.5% during the following two years (1997-98 and
1998-99). The 30% level of conservation is currently being achieved.
■ Operations and maintenance costs are based on the preliminary 1995-97 Financial Plan
with an inflation rate of 4% thereafter.
■ Debt-financing and repayment costs reflect issuing bonds in 1996-97 for water reuse.
Annual debt service of $792,000 is projected to begin in 1997-98. The water reuse
program is estimated to cost$800,000 for study and design in 1995-96 with construction
estimated at $8 million in 1996-97. This construction cost estimate covers the
construction of the water reuse distribution system and facilities.
■ Rate increases for other agencies who receive their water from the City are based on
agreements in effect with Cal Poly and Cuesta College. We are anticipating Cal Poly
to receive State funding for their equity contribution to the water treatment plant
($955,000 in 1994-95). Both Cal Poly and Cuesta rates will increase proportionately as
other customers after 1995-96.
■ Water customer growth rate is projected at less than 1% until 1998-99. This projection
corresponds with the assumptions used in the information regarding General Fund
revenues presented at the January 21, 1995 Council Goal Setting Workshop.
■ Capital improvement charges (development impact fees) are estimated based on three
factors:
Projected water customer growth rates as assumed above;
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�����►►�►►�►Illlp�p° il�lU city of San L.6 OBISpo
COUNCIL AGENDA REPORT
Water Impact fee rates as adopted by Council in November, 1994;
Impact fee retrofit credits adopted by the Council in February, 1995.
These credits will be discontinued when construction starts on an additional water supply
source.
■ Connection and meter charges and account set-up fees are projected to increase according
to the rate of inflation.
■ Construction for the Salinas Reservoir expansion is projected for 1998-99. Annual debt
service payments would not occur until after this review timeframe.
■ Additional funding for the Nacimiento water supply project is M one of the assumptions
included in this analysis. The most recent information from County Engineering
indicates they plan to debt-finance all future expenses. If the project continues on the
anticipated schedule, water deliveries will begin in the year 2000, at which time the City
would pay to purchase Nacimiento water. The purchase price will include recovery of
all debt service costs from the financing of the final design and construction, as well as
operating costs. At the current subscription request of 3,380 acre-feet per year, and an
estimated cost of$1,000 per acre-foot, the estimated annual cost in 2000 is $3,380,000
per year. This cost is outside of the timeframe covered in this rate review, and will be
recovered through a combination of rates and impact fees.
■ Fund balance exceeds the 20% of operating expenses requirement due to the equity
contribution from Cal Poly. Because of the number of variables (emergency expenses,
claims)and considerations (debt service requirements) which would reduce this projected
fund balance, using fund balance as ongoing strategy for balancing revenues and
expenditures is not recommended. When the equity contribution is received, staff will
provide Council a full analysis of the options for the appropriate uses of the fund balance
in excess of the 20% requirement.
FISCAL IMPACT
The proposed 3.5% and 3% rate increases (rounded to the nearest five cents) will affect the
monthly water rates as follows:
Current Proposed Rates Proposed Rates
Rates July 1. 1995 July 1. 1996
1 to 5 ccf $2.60 per ccf $2.70 per ccf $2.80 per ccf
over 5 ccf $3.25 per ccf $3.35 per ccf $3.45 per ccf
ccf = one hundred cubic feet
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��►�����ii�lllllll�p°a��l��l city of San _ .a s OBISPO
mamCOUNCILS AGENDA REPORT
Based upon the consumption of the average residential customer at.30% conservation from 1987
consumption (which is the conservation rate used in the water fund analysis for 1995-97), the
proposed rate increase effective July 1, 1995 will increase the monthly water bill as follows:
Current Proposed 7/1/95
Rates Water Bill Difference
9 ccf $26.00 $26.90 $ .90
ATTACHMENT
Resolution adopting water service rates
EXHIBITS
A.. Schedule of proposed rates for water service for 1995-97
B. Water Fund Rate Review
1. Changes in fund balance - water fund
2. Assumptions for water fund projections
3. Capital improvement plan for the water fund
I
s�
RESOLUTION NO. (1995 SERIFS)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING WATER SERVICE RATES
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 1995-96 through 1998-99; and
WHEREAS, the Council has reviewed the water service rates necessary to meet system
operating and capital requirements.
NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Resolution No. 8209 (1993 Series) is hereby rescinded on the effective
date of this resolution.
SECTION 2. The rates set forth in Exhibit A shall be effective July 1, 1995 and July
1, 1996.
On motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on this day of , 1995.
Mayor Allen Settle
ATTEST:
City Clerk Diane Gladwell
APPROVED AS TO FORM:
it tlo a ffr Jorgensen
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EXHIBIT A
RATES FOR WATER SERVICE
Monthly water service charges per hundred cubic feet of water (ccf) used per dwelling unit for
accounts classified as residential by the director of finance and per account for all other users,
are as follows:
Commodity Charges Per CCF
Effective July 1, 1995 Inside City Outside City
Construction Site Meters
0 to 1 ccf $ 2.70 $ 5.40
In excess of 1 ccf thereafter $176.00 $352.00
All Others
1 to 5 ccf $ 2.70 $ 5.40
More than 5 ccf $ 3.35 $ 6.70
Commodity Charges Per CCF
Effective July 1, 1996 Inside City Outside City
Construction Site Meters
0 to 1 ccf $ 2.80 $ 5.60
In excess of 1 ccf thereafter $181.00 $362.00
All Others
1 to 5 ccf $ 2.80 $ 5.60
More than 5 ccf $ 3.45 $ 6.90
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ffiIBIT B.1
e +s.'• In l� M N N N l� N M
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MEET a AGENDA
DATE ITEM # -89
MEMORANDUM
May 23, 1995
TO: City Councilmembers
VIA: John Dunn, City Administrative Officeo-"'�'
FROM: John Moss, Utilities Directo
Sue Baasch, Administrative nalyst
SUBJECT: Minor update to Water Fund balance analysis (Exhibit B.1)
A very minor revision--one that does not change the fundamental analysis and rate
recommendation—needs to be noted and changed in your copy of the "Changes in Fund Balance-
Water Fund" (Exhibit B.1). Last minute revisions to this page resulted in the MOA adjustments
($6,300 in 1995-96 and $23,000 in 1996-97) showing as an increase rather than a reduction to
fund balance. The attached copy corrects this, and adjusts the subsequent year operating and
maintenance expenses to reflect this ongoing expense.
Again, because these adjustments are comparatively very small amounts compared to the total
expenses and other assumptions can vary by these amounts, this does not change the fundamental
analysis. However, it is important that these documents be as accurate and precise as our best
information. It is in this interest that we ask that you replace this page with the updated one
attached.
NCIL ❑ CDD DIR
RECEIVED � 0FIRER
�ACAO ❑ FIRE CHIEF ;
ATTORNEY ❑ PW DIR
MAY 2 -71995 iYELERKK RIC ❑ POUCE CHF
❑ MCiI1IrTEAM ❑ C DIR
CITY CLERK 13C READ FILE IN UTIL DIR
SAN LUIS OBISPO,GA "1� 0 PERS DIR
EXHIBIT B.1 (rev)
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NI&-a- ING AGENDA
DATE "I ,,-.AGENDA
#
San Luis Obispo Chamber of Commerce
1039 Chorro Street • San Luis Obispo, California 93401-3278
(805) 781-2777 • FAX (805) 543-1255
David E. Garth, Executive Director
May 23, 1995 COUNCIL ❑ DD DIR
�AO a FIN DIR
CAO ❑ FIRE CHIEF
TTORNEY ❑ PW DIR
Mayor Allen Settle and Members of the City Council IrCLERKADRIG ❑ POUCE CHF
City of San Luis Obispo ❑ MGMT TEAM ❑ WO DIR
990 Palm Street 13C RYAD FILE Ill lum DIR
San Luis Obispo,California 93401 1121' ❑ PERS DIR
Honorable Mayor and Members of the City Council:
As you know,the Chamber recently expressed a position that criticized those aspects of the 1995-97
Preliminary Financial Plan dealing with proposed user fee increases.
It is the Chamber's position that the City must look to defer those projects that cannot be paid for from
existing City revenues at this time. When evaluating the cornucopia of projects presented in the
Preliminary Financial Plan,the Chamber believes that those projects that provide essential City services or
represent opportunities that cannot be deferred should take the highest priority in the coming budget cycle.
We are therefore supportive of the plan by the City Utilities department to use water and sewer fund rate
fees to cover the cost of providing water services,including operations,capital outlay,and debt service.
We feel that the revenue requirements for projects funded by water and sewer funds represent a top
priority need for the City,and should therefore not be included in those programs deferred from the 1995-
97 budget.
Our position in this regard is based on the assumption that water and sewer fund fees are necessary in
order to move forward with City plans to implement its water reuse program. This program represents the
most tangible new water source for the city,is one of the least expensive new sources of water,is
environmentally sound,and can be fully operational by 1998.
The Chamber believes that developing and enhancing our water supply is essential to the ability of San
Luis Obispo to meet the needs associated with completion of the general plan,including the airport area
annexation. In addition to pursuing the water resources available through the Salinas Dam expansion and
the Nacimiento reservoir project,the water reuse program represents a significant opportunity for our city
to succeed in its endeavor to provide adequate water resources to its citizens.
Yours very truly,
RECEIVED
William Thoma,President MAY 1
CITY COUNCIL ACCREDITED
CAN 11110 r 010pn PA CHAMBER OF COMMERCE
,i