HomeMy WebLinkAboutR-10910 Establishing the Sewer Rate Structure and Sewer Rates for Fiscal Year 2018-19RESOLUTION NO. 10910 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING THE SEWER RATE
STRUCTURE AND SEWER RATES FOR FISCAL YEAR 2018-19
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, the City began its rate structure review in July 2017 to examine the City
Council's goals in support of the provision of sewer services now and into the future; and
WHEREAS, current citywide sewer use information influenced by the recent drought
conditions, have been taken into consideration when evaluating sewer revenue; and
WHEREAS, on January 9, 2018 the City Council directed staff to incorporate the updated
sewer rate structures into to the sewer rate study and fund analyses; and
WHEREAS, on February 6, 2018 the City Council reviewed preliminary sewer rates based
on updated revenue and expenditure information and necessary to meet system operating, capital,
and debt service requirements; and
WHEREAS, a comprehensive rate study was completed in May 2018 by HDR
Engineering, Inc including analysis of Sewer Fund operating, capital, and debt service needs for
fiscal years 2018-19 through 2022-23; and
WHEREAS, the Council desires to modify the existing rate structure, including the basis
of the base fees for different customer classes and per-unit sewer rate; 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 sewer rate structure and sewer rates set forth in Exhibit "A" are hereby
adopted, establishing sewer rates effective July 1, 2018. Notwithstanding the foregoing, City staff
shall apply the prior sewer rates, as established by Resolution No. 10805 (2017 Series), to any
sewer 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in the foregoing sentence, Resolution No. 10805 (2017 Series) is hereby rescinded effective 11:59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. 10910 (2018 Series)
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SECTION 2. 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 Council Member Pease, 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 19`h day of June, 2018.
Mayor VeidlHarmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
IN WITNESS WHEREOF, I have hereunto set my liaild and affixed the official seal of the City
of San Luis Obispo, California, this �� day of -� u•An-L , 2-61%
P .
Teresa Purrington
City Clerk
R 10910
Resolution No. 10910 (2018 Series)
EXHIBIT A
2018-19 Sewer Rate Structure and Sewer Rates
RESIDENTIAL (WINTER WATER USE CAP APPLIES):
Proposed Structure Proposed Rate
Single Class Monthly Base Fee: $18.69
Usage (per unit cost): Up to sewer cap 7.85
MULTI -FAMILY, NON-RESIDENTIAL:
Proposed Structure
Proposed Rate
Base Fee by Water Meter Size
Monthly Base Fee
3/4 inch & Less
$18.69
1 -inch meter"
$31.21
1.5 -inch meter
$62.24
2 -inch meter
$99.62
3 -inch meter
$186.90
4 -inch meter
$311.56
6 -inch meter
$622.93
8 -inch meter
$996.72
10 -inch meter
$1,432.94
Usage (per unit cost) all use
$ 7.85
One Unit = 748 gallons
For service to customers outside the City, sewer rates are two times the "in -
City" rate.
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