R10852City Council Meeting: December 16, 2014 Santa Monica, California
RESOLUTION NUMBER 10852 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA RECOMMENDING CONSIDERATION OF
CERTAIN PROPOSED WATER RATE INCREASES; SETTING
A PUBLIC HEARING ON FEBRUARY 24, 2015, TO
HEAR ANY PROTESTS OR OBJECTIONS TO
THE PROPOSED CONSIDERATION OF WATER RATE INCREASES;
AND DIRECTING THE CITY CLERK TO ISSUE NOTICE OF THE
HEARING TO ALL IMPACTED PROPERTY OWNERS OF RECORD IN
ACCORDANCE WITH PROPOSITION 218
WHEREAS, due to declining water sales and increased capital funding needs,
the City's cost to provide water service is projected to exceed the City's water revenues
unless water rates are increased; and
WHEREAS, City has conducted a water rate study which details the revenue
requirements of three proposed water rate alternatives to address the projected revenue
shortfall; and
WHEREAS, revenue requirements are driven by the need to augment
conservation plans, offset reduced revenues due to declining water sales, and increase
capital program funding to address the needs for continued infrastructure investment
and Sustainable Water Master Plan requirements; and
WHEREAS, Council has considered three proposed water rate alternatives, as
follows:
and;
WHEREAS, Option 3 is based on a 9% increase in the first year, and a 13%
increase in each of the remaining four years of the financial plan; and
WHEREAS, Option 3 provides for much stronger financial performance than the
other two proposed options and provides additional financial stability for the Water Fund
to meet projected capital improvements, potential emergency system improvements,
and absorb further than projected declines in water demands and water sales revenues.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
2
2015
2016
2017
2018
2019
Option 1
2.5%
2.5%
2.5%
2.5%
2.5%
(CPI only)
Option 2
9%
9%
9%
9%
9%
(9% plan)
Option 3
9%
13%
13%
13%
13%
(9/13% plan)
and;
WHEREAS, Option 3 is based on a 9% increase in the first year, and a 13%
increase in each of the remaining four years of the financial plan; and
WHEREAS, Option 3 provides for much stronger financial performance than the
other two proposed options and provides additional financial stability for the Water Fund
to meet projected capital improvements, potential emergency system improvements,
and absorb further than projected declines in water demands and water sales revenues.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
2
SECTION 2. Council hereby recommends consideration of a 9% increase
above existing water rates in the first year with 13% increases above then existing water
rates in the next four years as the plan for water rate increases in order to ensure
financial stability of the Water Fund.
SECTION 3. Pursuant to Article XIII D Section 6 of the California Constitution,
the City Council does hereby order and declare that on the 24th day of February, 2015,
in the City Council Chambers of City Hall, 1685 Main Street, Santa Monica, California
90401, it will conduct a public hearing upon the proposed plan for water rate increases
and consider all protests and objections against these water rate increases, which may
be raised by any property owner subject to these water rate increases or by any other
interested persons.
SECTION 4. All protests or objections must be in writing and filed with the City
Clerk on or before the time set for the hearing of the protests and objections.
SECTION 5. The City Clerk is hereby directed to mail notices, pursuant to
Article XIII D Section 6 of the California Constitution, to consider the proposed water
rate fee increases to all persons owning commercial, industrial, or residential real
property in the City of Santa Monica whose names and addresses appear on the last
equalized assessment roll for the City taxes or as known to the City Clerk.
SECTION 6. The City Clerk is directed to publish this Resolution, in accordance
with Government Code Section 6066 in the Santa Monica Daily Press once a week for
3
two successive weeks, with at least five days intervening between the first date and the
second date of publication. The first publication is to be made no less than 15 days
prior to the date of the above public hearing.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
ES
C!
Adopted and approved this 16th day of December, 2014.
IL,,-
Kevin McKeown, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10852 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 16th day of December, 2014, by the following vote:
AYES: Councilmembers: Davis, O'Connor, Winterer
Mayor McKeown, Mayor Pro Tern Vazquez
NOES: Councilmember: Himmelrich
ABSENT: Councilmember: O'Day
ATTEST:
i
Sarah P. Gorma , City Clerk