sr-063081T0:
FROM:
SUBJECT;
Introduction
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Mayor and City Council
City Staff
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Santa Monic lifornia June 30, 1981
Revised Water Rate Structure Recommendation
and Water Construction and Connection Fees
This report presents a revised rate structure for water in response to Council
request of June 16, 1981.
Background
The Staff presented two alternatives at the budget study sessions for water rates
to meet the budgeted expenditures for the system, and since then has prepared
another alternative dated June 18. The rate structures include four elements:
service charge, unit charge for amount of water used, utility adjustment and a
capital improvement charge.
At the June 16 meeting, the Council informally approved in concept the increases
in the capital improvement charge and the utility adjustment as proposed and
requested Staff to redesign the service charge to eliminate, if possible, the
element which provided "free" billing units of water and instead establish a
service charge with no base level of water included and a unit charge for all
water used so that each user, no matter how small, will have a greater incentive
to conserve water.
To accomplish-the above and maintain the revenue needed, Staff recommends the
following changes in the bimonthly rates:
Service Charge 3/4" Meter
1" Meter
Unit Charge for Water Used
Alternate II
May 20
$13.00 (includes
20 units of water)
$20.00 (includes
30 units of water)
50¢/100 cu. ft.
Revised Proposal
June 18 June 30
$3.00 $3.00
$5.00 $5.00
54¢/100 cu. ft. 48¢/100 cu. ft.
for up to 20 cu.ft
56¢/100 cu. ft. fo
all in PXrPCC nfl M ru ft
To: Mayor and City Coil -2- June 30, 1981
From: City Staff
Subject: Revised Water Rate Structure Recommendation
and Water Construction and Connection Fees
Utility Adjustment
Capital Improvement Charge
Alternate II
May 20
13¢/100 cu. ft
Single Family
House $7.00
Per Multi-Family
Unit $4.00
Revised Proposal
June 18 June 30
13¢/100 cu. ft
$5.00
13¢/100 cu. ft.
$5.00
$3.50
$3.85
The primary di.ffere.nce between this recommendation and that of June 18 or previous
recommendations is this recommendation includes an ascending rate. For all users,
the first 20 units of water is at 48¢/100 cu. ft., and all water in excess of
that amount is at the rate of 56¢/100 cu. ft.
The Staff again recommends using connection charges for new construction to defray
a portion (about 20%} of the costs of capital improvements and recommends fees as
described below to generate the required funds. If these connection fees are
adopted, a reduction in the bimonthly capital improvement fees from those recom-
mended on May 20 to those listed is possible.
If these recommendations are adopted, the following results will occur:
1. Conservation incentives will be provided for all users.
2. A reduction in tite water bill for all small users when compared to
previous recommendations (.those using less than 14 units bimonthly}.
3. A slight increase for all other users--approximately 5-20% when
compared to previous Staff recommendations. Staff proposes to radically
upgrade conservation awareness efforts so all customers may enjoy
savings if they expend efforts which will be suggested.
4. New construction will directly pay for portions of the capital improve-
ments.
To: Mayor and City Col -3- June 30, 1981
From: City Staff
Subject: Revised Water Rate Structure Recommendation
and Water Construction and Connection fees
Connection Charges
As proposed for sewer service last year, the Staff proposes water service
connection fees for new construction. The Las Virgenes Water District, City
of San Diego and a number of agencies have established such fees to defray
portions of capital improvement costs associated with new development. The
costs recommended are in addition to costs of installation of the meter and
service line.
These changes will will result in the following total water bill for various
typical users shown.
Bimonthly Water Bill Includin Capital Improvement Char e
Existing Alternate II Revised Pro posal
Bill May 20 June 18 June 30
Single Family using 20 units $16.50 $20.00 $21.40 $20.20
Single Family using 40 units 27.10 32.60 34.40 .34.00
Single Family using 5 units 16.50 15.00 11.35 1 1.05
Single Family using 16 units 16.50 20.00 18.35 17.76
10 Unit Multi- Family
(100 billing units and 2" Meter) 87.40 117.40 121.40 120.30
45,000 Comm. Bldg.
.(USA Petroleum)
413.32 631.22 648.06 654,29
Evening Outlook 2,296.86 2,885.99 3,042.86 3,120.02
These recommendations result in rates which for those using 30 units are 40%
higher than Culver City, but 40°0 lower than Malibu/Topanga.
Recommendation
Staff recommends City Council: 1) Adopt the attached Resolution revising basic
rate and service charges, as shown in this report and 2) Introduce for first
reading an ordinance establishing water connection fees.
Prepared by: Stan Scholl
Attached: Ordinance and Resolution