sr-062381-8cT0:
FROM:
SUBJECT
Mayor and City Council
City Staff
Santa Monica, California
Revised ~Aater Rate Structure Recommendation
Introduction
June 18, 1981
~°
JUN 2 3 198.1
This report presents a revised rate structure for water in response to Council
request of June 16, 1981.
Background
The Staff presented t~vo alternatives at the budget study sessions for water
rates to ;neet the budgeted expenditures for the system. The rate structure
includes 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 a1T
water used so that each. user, no matter how small, will have a greater incen-
tive 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" ;deter
1" Meter
Unit Charge for Water Used
Uti ity Adjustment
Capital Improvement Charge
Alternate II.
May 20
$13.00 (includes
20 uni s of water
$20.00 (~nc7udes
30 units of waterl
50¢/100 co ft.
13¢/100 cu. ft
$7.00
Rev%sed Proposal
June 18
$3,00
$5.00
54¢/10.0 cu. ft..
13¢/100 cu. ft. S'~
$5.00 ~~e-'
JUN 2 3 198
?"o: Mayor and City Cowicil -2-
From: City Staff
Subject: Revised Water Rate Structure
Recommendations
Santa Monica, Calif.
dune 18, 1481
The Staff has evaluated the concept of using connection charges for new con-
struction. to defray a portion (about 20%) of the costs of capital improvements
and recommends connection 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 recommended on May 20 to those listed below is also
recommended.
If these recommendations are adopted, the following results. will occur:
1. Conservation incentives will be provided for all users.
2. A reduction in the water bill for all small users when compared to
previous recommendations (.those using less than 16 uni s bimonthly).
3. A slight increase for all other users--approximately 5-10% 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
improvements.
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.
io: Mayor and City Council -3-
-From: City Staff
Subject: Revised Water Rate Structure Recommendation
Santa Monica Calif.
Jane. 14, 148
These changes will result in the following total water bill for various
typical users shown.
Bimonthly Water Bill Including Capital Improvement Charge
Existing Alternate II
Bill May 20
Single Family using 20 units X16.50 $20.00
Single Family using 40 units 27.10 32.60
Single Family using 5 units 1fi.50 15.00
Single Family using 16 units T6.50 20.00
10 Unit P4ulti-Family
(100 billing units. and 2" Meter) 87,40 117.40
45,000 Comm. Bldg.
(.USA Petroleum) 413.32 631.22
Evening Outlook 2,296.86 2,885.94
Revised Proposal
June 18
$21.40
34.40
11.35
18.35
121.40
648,06
3,042,86
Recommendation
Staff recommends City Council: 1) Adopt the attached Resolution revising
basic rate and service charges, as shown in this report and 2j. Introduce
for first reading an ordinance establishing water connection fees.
Prepared by; Stan Scholl
Attached; Opdinance-
Re.s4lutign