R10867City Council Meeting February 24, 2015 Santa Monica, California
RESOLUTION NUMBER 10867 (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA REVISING WATER RATES
AND WATER SERVICE CHARGES
WHEREAS, the City Council may establish, amend or revise from time
to time by resolution the rates and service charges to be charged for
supplying water service to any customer pursuant to Government Code
section 54344 and Section 7.12.010 of the Santa Monica Municipal Code; and
WHEREAS, the City is implementing a comprehensive long range water
system improvement program with the goal of having reliable infrastructure
and a sustainable water supply by eliminating dependence on imported water
sources to meet potable water needs by 2020; and
WHEREAS, in order to achieve these goals, the City has implemented
self- sufficiency water conservation programs and mandatory water reductions
pursuant to its Water Shortage Response Plan, resulting in an immediate 20%
reduction in water sales; and
WHEREAS, most of the City's water production costs are fixed, the
City's Water Fund is projected to be adversely impacted by the reduction in
water sales and
increases in conservation program costs and, as a result, water rate increases are
needed to finance the cost of providing water service; and
WHEREAS, the City of Santa Monica is proposing water rate increases ( "Water
Rate Increases ") to the City's existing tiered water rate structure over a five -year period
beginning March 1, 2015 and the proposed maximum percentage increases are:
March 1,
2015
January 1,
2016
January 1,
2017
January 1,
2018
January 1,
2019
9.0%
9.0%
9.0%
9.0%
9.0%
; and
WHEREAS, in accordance with Government Code section 54354, delinquent
charges and penalties for water services when recorded in accordance with
Government Code section 54355 shall constitute a lien upon the real property served;
and
WHEREAS, the City Council held a public hearing ( "Hearing ") to consider the
proposed Water Rate Increases on February 24, 2015; and
WHEREAS, the City Clerk gave notice of the proposed Water Rate Increases
( "Notice "), which Notice contained a copy of the proposed resolution to adopt the Water
Rate Increases and a declaration that delinquent charges and penalties when recorded
as provided in Government Code section 54355 shall constitute a lien upon the real
property served; and
WHEREAS, the Notice stated the time and place of the Hearing on said
proposed resolution, and that at said time and place any person interested, including all
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persons owning property within the water service area of the City, may appear and be
heard as to whether the proposed Water Rate Increases are discriminatory or
excessive, or will not be sufficient under Government Code section 54515, or will not
comply with the provisions of Chapter 6 of Division 2, Title 5 of the Government Code,
or will not be sufficient under the provisions or covenants of any outstanding revenue
bonds of the City, if any, payable from the water rate revenues, or on any other matter
relating to said proposed resolution or the proposed Water Rates proposed therein; and
WHEREAS, the Notice was published at least once each week for two weeks
prior to the Hearing in the Santa Monica Daily Press, in accordance with Government
Code section 54354.5; and
WHEREAS, a separate notice of the proposed Water Rate Increases was also
given in accordance with Article XIII D Section 6 of the California Constitution, by
mailing such notice to the owner of record of each parcel in Santa Monica's service area
and parcels in the City of Los Angeles who receive water service from the City of Santa
Monica; and.
WHEREAS, the City Council desires to maintain flexibility to suspend, in whole or
in part, each future yearly rate increase ( "Suspension "), beginning with the January 1,
2016 scheduled rate increase, before such rate increase takes effect, depending upon
circumstances which demonstrate that such increase is unnecessary, including, without
limitation, greater than anticipated revenues, decreased operating expenses, or
decreased capital projects expenditures; and
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WHEREAS, the Suspension may be approved by a majority vote of all of the
Councilmembers prior to the effective date of the next scheduled rate increase; and
WHEREAS, if approved, the Suspension would mean that the next scheduled
rate increase would not go into effect; and
WHEREAS, the City Council has considered all written and oral testimony
presented at the Hearing and considered whether the proposed Water Rate Increases
are discriminatory or excessive, or will be sufficient under Government Code section
54515, or will comply with the provisions of Chapter 6 of Division 2, Title 5 of the
Government Code, or will be sufficient under the provisions or covenants of any
outstanding revenue bonds of the City, if any, payable from the water rate revenues and
will be in compliance with law;
NOW, THEREFORE, THE CITY OF SANTA MONICA DOES RESOLVE AS
FOLLOWS:
SECTION 1. The City Council hereby determines that the proposed Water Rate
Increases are not discriminatory or excessive, and will be sufficient under Government
Code section 54515, and will comply with the provisions of Chapter 6 of Division 2, Title
5 of the Government Code, and will be sufficient under the provisions or covenants of
any outstanding revenue bonds of the City, if any, payable from the water rate revenues
and will be in compliance with law.
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SECTION 2. As of March 1, 2015, or as soon thereafter practical, the four -tier
water commodity rate structure for single - family customers for all meter sizes shall be
as follows:
Tier
Rate
1
$2.73
2
$ 4.09
3
$ 6.13
4
$ 9.59
* HCF = 100 cubic feet
Single Family
Ranae of Use /HCF*
0 -14
15 -40
41 -148
149+
SECTION 3. As of March, 1, 2015, or as soon thereafter practical, the four -tier
water commodity rate structure for multi - family customers for all meters sizes shall be
as follows:
Multi Family Range of Use
Tier
Rate
Per Dwelling Unit /HCF'
1
$ 2.73
0 -4
2
$ 4.09
5 -9
3
$ 6.13
10 -20
4
$ 9.59
21+
* HCF = 100 cubic feet
SECTION 4. As of March 1, 2015, or as soon thereafter practical, the two -tier
water commodity rate structure based on meter size for non - residential customers shall
be as follows:
Meter Size Tier Rate
Range of Use /HCF
3/" & 1" Tier 1 $ 3.88
0 -210
Tier 2 $ 9.55
211+
1 -1/2" Tier 1 $ 3.88
0 -465
Tier 2 $ 9.55
466+
5
2"
Tier 1 $ 3.88
0 -870
$39.05
Tier 2 $ 9.55
871+
3"
Tier 1 $ 3.88
0 -1,700
$172.32
Tier 2 $ 9.55
1,701+
4"
Tier 1 $ 3.88
0 -2,550
$752.66
Tier 2 $ 9.55
2,551+
6" and above
Tier 1 $ 3.88
0 -5,280
Tier 2 $ 9.55
5,281+
SECTION 5. As of March 1, 2015, or as soon thereafter practical, the one -tier
recycled water rate shall be as follows:
$3.49 per HCF
SECTION 6. As of March 1, 2015, or as soon thereafter practical, the fixed bi-
monthly service charge for fireline meters shall be as follows:
Meter Size
Service Charge
1 '' /2'
$39.05
2"
$62.65
3"
$107.82
4"
$172.32
6"
$333.52
8"
$526.97
1011+
$752.66
Any unauthorized metered water usage for fireline meters shall result in doubling
of the service charge.
SECTION 7. A low- income allowance will be offered to residential water
customers with individual water meters who qualify for the City's Utilities User Tax
Exemption Program, the Southern California Gas Co. or the Southern California Edison
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low- income assistance programs. As of March 1, 2015, or as soon thereafter practical,
the residential low- income water commodity charge shall be as follows:
Tier 1 $ 1.73
Tier 2 $ 4.09
Tier 3 $ 6.13
Tier 4 $ 9.59
SECTION 8. Maximum rate increases from March 1, 2015 through December
31, 2019 are hereby established as follows, unless Council approves a Suspension of
the rate in whole or in part prior to the effective date of the next scheduled rate increase,
beginning with the January 1, 2016 scheduled rate increase:
March 1, 2015
9% (this increase is already reflected in Sections 2 — 7)
January 1, 2016
9%
January 1, 2017
9%
January 1, 2018
9%
January 1, 2019
9%
SECTION 9. Commencing upon January 1, 2016 and on January 1 of each fiscal
year thereafter, fees established by this resolution shall be administratively revised
annually by a factor no greater than the percentages outlined in Section 8.
SECTION 10. In accordance with Government Code section 54354, delinquent
charges and penalties for water services when recorded in accordance with
Government Code section 54355 shall constitute a lien upon the real property served.
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SECTION 11. Resolution Number 10321 (CCS) is hereby repealed in its entirety.
SECTION 12, 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:
MOUTRIE
City
s
1.1
Adopted and approved this 24th day of February, 2015.
a"-
Kevin McKeown, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10867 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 24th day of February, 2015, by the following vote:
AYES: Councilmembers
NOES: Councilmember:
ABSENT: Councilmember:
Himmelrich, O'Connor, O'Day, Winterer
Mayor McKeown, Mayor Pro Tern Vazquez
None
Davis
ATTEST:
Sarah P. Gorman, City Clerk