HomeMy WebLinkAboutR-10909 Establishing the Water Rate Structure and Water Service Rates for Fiscal Year 2018-19RESOLUTION NO. 10909 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING THE WATER RATE
STRUCTURE AND WATER RATES FOR FISCAL YEAR 2018-19
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, the City began its water rate structure review in July 2017 to examine the
City Council's goals in support of the provision of water services now and into the future; and
WHEREAS, when evaluating consumption and water sales revenue and expenditures, this
analysis used updated revenue and expenditure information taking into account current citywide
water use information influenced by the recent drought conditions; and
WHEREAS, on January 9, 2018 the City Council directed staff to incorporate the updated
water rate structures into to the water rate study and fund analyses; and
WHEREAS, on February 6, 2018 the City Council reviewed preliminary water rates based
on updated revenue and expenditure information and necessary to meet system operating, capital,
and debt service requirements; and
WHEREAS, a comprehensive water rate study was completed in May 2018 by HDR
Engineering, Inc including analysis of Water Fund operating, capital, and debt service needs for
fiscal years 2018-19 through 2022-23; and
WHEREAS, the Council desires to modify the existing water rate structure including the
basis of the base fees for different customer classes and the per-unit water rate for each customer
class; and
WHEREAS, a public hearing was properly noticed and held on June 19, 2018; 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. The water rates set forth in Exhibit "A" are hereby adopted, establishing
water rates effective July 1, 2018. Notwithstanding the foregoing, City staff shall apply the prior
water rates, as established by Resolution No. 10805 (2017 Series), to any water bills based on
water meter reads which are read prior to July 10, 2018. Except as provided in the foregoing
sentence, Resolution No. 10805 (2017 Series) is hereby rescinded effective 11:59 p.m. June 30,
2018.
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Resolution No. 10909 (2018 Series)
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SECTION 2. The water system access charges for emergency purposes are $ 83.57
monthly, effective July 1, 2018.
SECTION 3. Modification of rates and charges by public agencies is statutorily exempt
from the California Environmental Quality Act (CEQA) under Section 15273 of the CEQA
Guidelines because 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.
Upon motion of Council Member Rivoire, seconded by Vice Mayor Christianson, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 19th day of June, 2018.
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
XDietrick
yorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 2.S*M day of SU,y,�L _, 2Z 1
Teresa Purrington
City Clerk
R 10909
Resolution No. 10909 (2018 Series)
EXHIBIT A
2018-19 Water Rate Structure and Water Rates
RESIDENTIAL:
Proposed Structure
Proposed Rate
Single Class Monthly Base Fee:
$20.61
Usage (per unit cost):
Tier 1
0-5 units
$5.90
Tier 2
6-12 units
$6.87
Tier 3
13+ units
$12.59
MULTI -FAMILY, NON-RESIDENTIAL, IRRIGATION:
Proposed Structure
Proposed Rate
Base Fee by Water Meter Size
Monthly Base Fee
3/4 inch & Less
$20.61
1 -inch meter"
$34.40
1.5 -inch meter
$68.65
2 -inch meter
$109.85
3 -inch meter
$206.10
4 -inch meter
$343.55
6 -inch meter
$686.95
8 -inch meter
$1,099.15
10 -inch meter
$1,580.15
Usage (per unit cost)
Per Unit Cost
Multi -Family Residential
all use
$6.73
Non -Residential
all use
$8.17
Irrigation
all use
$10.02
One Unit = 748 gallons
For service to customers outside the City, water rates are two times
the "in -City" rate.
Recycled water charges are 90 percent of potable water charges, per
Resolution No. 9386 (2002 Series), adopted November 12, 2002.
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