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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 Except as provided in the foregoing sentence, Resolution No. 10805 (2017 Series) is hereby rescinded effective 11:59 p.m. June 30, 2018. R 10910 Resolution No. 10910 (2018 Series) Page 2 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. Page 3 R 10910