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R11225City Council Meeting: January 28, 2020 Santa Monica, California RESOLUTION NUMBER 11225 (CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA, CALIFORNIA, REVISING WATER RATES AND WATER SERVICES CHARGES WHEREAS, the City Council may establish, amend or revise from time to time by resolution the rates and service charges for supplying water service to any customer pursuant to Government Code Section 54344 and Santa Monica Municipal Code Section 7.12.010; and WHEREAS, the City is implementing a comprehensive long-range water system improvement program with the goal of maintaining a modern, reliable water network and infrastructure and to achieve water self-sufficiency by 2023; and WHEREAS, in order to achieve these goals, the City is implementing various water self-sufficiency projects as outlined in the 2018 Sustainable Water Master Plan Update; and WHEREAS, water rate increases are needed to invest in water self- sufficiency, maintain a modern and reliable water infrastructure, and adequately fund ongoing cost of providing water services; and WHEREAS, the City of Santa Monica is proposing water rate increases (“Water Rate Increases”) to the City’s tiered water structure over a five-year period beginning March 1, 2020, and the proposed maximum percentage increases, on a systemwide basis, are: DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 March 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023 January 1, 2024 20% 18% 14% 14% 14% ; 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 January 28, 2020; and WHEREAS, the City Clerk gave notice of the proposed Water Rate Increases, 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 which 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 has considered all written and oral testimony presented at the Hearing and considered whether the proposed Water Rate DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 Increases: are not discriminatory or excessive; will be sufficient under Government Code section 54515; will comply with the provisions of Chapter 6 of Title 5, Division 2, Part 1 of the Government Code; 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; will be sufficient under Government Code section 54515; will comply with the provisions of Chapter 6 of Title 5, Division 2, Part 1 of the Government Code; 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. SECTION 2. As of March 1, 2020, or as soon thereafter as practical, all customers will be charged both a bi-monthly fixed water service rate (based on meter size as specified in Section 3 below) and a water commodity rate (based on usage as specified in Sections 4 through 8 below). SECTION 3. As of March 1, 2020, or as soon thereafter as practical, the fixed water service rate structure for all customers shall be as follows for the following years: Water Rate Schedule Bi-Monthly Fixed Water Service Rates FY 2019/20 (3/1/2020 to 12/31/2020) FY 2020/21 (1/1/2021 to 12/31/2021) FY 2021/22 (1/1/2022 to 12/31/2022) FY 2022/23 (1/1/2023 to 12/31/2023) FY 2023/24 (1/1/2024 to 12/31/2024) Single Family Residential (meter size) 3/4 inch $11.11 $13.11 $14.95 $17.04 $19.43 1 inch $11.11 $13.11 $14.95 $17.04 $19.43 1.5 inch $15.66 $18.48 $21.07 $24.02 $27.38 2 inch $21.13 $24.93 $28.42 $32.40 $36.93 DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 Water Rate Schedule Bi-Monthly Fixed Water Service Rates FY 2019/20 (3/1/2020 to 12/31/2020) FY 2020/21 (1/1/2021 to 12/31/2021) FY 2021/22 (1/1/2022 to 12/31/2022) FY 2022/23 (1/1/2023 to 12/31/2023) FY 2023/24 (1/1/2024 to 12/31/2024) Multi-family Residential and Non-Residential (meter size) 3/4 inch $13.44 $15.86 $18.08 $20.61 $23.50 1 inch $13.44 $15.86 $18.08 $20.61 $23.50 1.5 inch $20.32 $23.97 $27.33 $31.16 $35.52 2 inch $28.57 $33.71 $38.43 $43.81 $49.94 3 inch $50.57 $59.68 $68.03 $77.56 $88.41 4 inch $75.33 $88.89 $101.33 $115.52 $131.69 6 inch $144.10 $170.04 $193.84 $220.98 $251.91 8 inch $391.66 $462.16 $526.86 $600.62 $684.71 Fire Service Lines (meter size) 1.5 inch $42.65 $50.33 $57.38 $65.41 $74.57 2 inch $64.31 $75.88 $86.51 $98.62 $112.42 3 inch $132.88 $156.80 $178.75 $203.77 $232.30 4 inch $259.19 $305.85 $348.66 $397.48 $453.12 6 inch $584.00 $689.12 $785.60 $895.58 $1,020.96 8 inch $1,017.08 $1,200.15 $1,368.17 $1,559.72 $1,778.08 10 inch $1,522.33 $1,796.35 $2,047.84 $2,334.54 $2,661.38 Any unauthorized metered water usage for fire service lines shall result in doubling of the fixed service charge for those fire service lines. SECTION 4. As of March 1, 2020, or as soon thereafter as practical, the three-tier water commodity rate structure for all customers (subject to adjustment to a drought rate structure pursuant to Section 6 below as directed by the City Council when water conservation is mandated and subject to adjustment pursuant to Section 7 below for residential low income customers with individual water meters) shall be as follows for the following years: Water Rate Schedule Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (All Customers) FY 2019/20 (3/1/2020 to 12/31/2020) FY 2020/21 (1/1/2021 to 12/31/2021) FY 2021/22 (1/1/2022 to 12/31/2022) FY 2022/23 (1/1/2023 to 12/31/2023) FY 2023/24 (1/1/2024 to 12/31/2024) Tier 1 $3.78 $4.46 $5.08 $5.80 $6.61 Tier 2 $4.39 $5.18 $5.91 $6.73 $7.67 Tier 3 $6.26 $7.39 $8.42 $9.60 $10.94 Note: HCF = hundred cubic feet DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 SECTION 5. As of March 1, 2020, or as soon thereafter as practical, the bi- monthly tier breakpoint for water usage shall be as follows: Bi-Monthly Tier Breakpoint Table in HCF Customer Class and Meter Size Tier 1 Breakpoint Tier 2 Breakpoint Tier 3 Breakpoint Single Family Residential Per Unit (all meter sizes) 0 - 11 HCF 12 - 18 HCF 19+ HCF Multi-Family Residential Per Unit (all meter sizes) 0 - 8 HCF 9 - 13 HCF 14+ HCF Non-Residential Per Meter Size: 3/4 inch 0 - 11 HCF 12 - 18 HCF 19+ HCF 1 inch 0 - 11 HCF 12 - 18 HCF 19+ HCF 1.5 inch 0 - 22 HCF 23 - 36 HCF 37+ HCF 2 inch 0 - 35 HCF 36 - 58 HCF 59+ HCF 3 inch 0 - 70 HCF 71 - 115 HCF 116+ HCF 4 inch 0 - 110 HCF 111 - 180 HCF 181+ HCF 6 inch 0 - 220 HCF 221 - 360 HCF 361+ HCF 8 inch 0 - 924 HCF 925 - 1,512 HCF 1,513+ HCF Note: HCF = hundred cubic feet SECTION 6. As of March 1, 2020, or as soon thereafter as practical, a drought rate structure will be in place and be in effect as directed by City Council when water conservation is mandated. The level of conservation mandated will determine the adjusted three-tier water commodity rate structure, which for all customers shall be as follows for the following years: Mandated Level of Conservation Drought Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (All Customers) FY 2019/20 (3/1/2020 to 12/31/2020) FY 2020/21 (1/1/2021 to 12/31/2021) FY 2021/22 (1/1/2022 to 12/31/2022) FY 2022/23 (1/1/2023 to 12/31/2023) FY 2023/24 (1/1/2024 to 12/31/2024) Tier 1 $3.90 $4.60 $5.24 $5.97 $6.81 10% Tier 2 $4.64 $5.48 $6.24 $7.12 $8.11 Tier 3 $6.80 $8.03 $9.15 $10.43 $11.89 Tier 1 $4.18 $4.93 $5.62 $6.41 $7.31 20% Tier 2 $4.98 $5.88 $6.70 $7.64 $8.71 Tier 3 $7.30 $8.62 $9.82 $11.20 $12.76 Tier 1 $4.55 $5.36 $6.12 $6.97 $7.95 DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 Mandated Level of Conservation Drought Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (All Customers) FY 2019/20 (3/1/2020 to 12/31/2020) FY 2020/21 (1/1/2021 to 12/31/2021) FY 2021/22 (1/1/2022 to 12/31/2022) FY 2022/23 (1/1/2023 to 12/31/2023) FY 2023/24 (1/1/2024 to 12/31/2024) 30% Tier 2 $5.42 $6.39 $7.29 $8.31 $9.47 Tier 3 $7.94 $9.37 $10.68 $12.18 $13.88 Tier 1 $5.03 $5.94 $6.77 $7.72 $8.80 40% Tier 2 $6.00 $7.08 $8.07 $9.20 $10.49 Tier 3 $8.79 $10.38 $11.83 $13.49 $15.37 Tier 1 $5.72 $6.75 $7.69 $8.77 $10.00 50% Tier 2 $6.81 $8.04 $9.16 $10.45 $11.91 Tier 3 $9.99 $11.79 $13.43 $15.32 $17.46 Tier 1 $6.74 $7.96 $9.07 $10.34 $11.79 60% Tier 2 $8.03 $9.48 $10.81 $12.32 $14.04 Tier 3 $11.78 $13.90 $15.84 $18.06 $20.59 Note: HCF = hundred cubic feet SECTION 7. A low-income allowance will be offered to residential water customers with individual water meters who qualify for the City’s Utilities User Tax Exemption Program or the Southern California Gas Co. or Southern California Edison low-income assistance programs. As of March 1, 2020, or as soon thereafter as practical, the residential low-income water commodity charge for residential customers with individual water meters shall be as follows for the following years: Low-Income Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (Residential Customers with Individual Water Meters Only) FY 2019/20 (3/1/2020 to 12/31/2020) FY 2020/21 (1/1/2021 to 12/31/2021) FY 2021/22 (1/1/2022 to 12/31/2022) FY 2022/23 (1/1/2023 to 12/31/2023) FY 2023/24 (1/1/2024 to 12/31/2024) Tier 1 $2.78 $3.46 $4.08 $4.80 $5.61 Tier 2 $4.39 $5.18 $5.91 $6.73 $7.67 Tier 3 $6.26 $7.39 $8.42 $9.60 $10.94 Note: HCF = hundred cubic feet SECTION 8. As of March 1, 2020, or soon thereafter as practical, the one- tier recycled water rate will remain the same and shall be as follows: $3.49 per HCF DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 SECTION 9. In accordance with Government Code section 54354, delinquent charges and penalties for water services recorded in accordance with Government Code section 54355 shall constitute a lien upon the real property served. SECTION 10. Resolution Number 10867 (CCS) is hereby repealed in its entirety. SECTION 11. 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: _______________________ LANE DILG CITY ATTORNEY DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66 Adopted and approved this 28th day of January 2020. __________________________ K e v i n M c K e o w n , M a y o r I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11225 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 28th day of January 2020, by the following vote: AYES: Councilmembers Davis, Himmelrich, Jara, Morena, Winterer, Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None A T T E S T : _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 630E69CB-1528-4D71-9D3E-94497C111A66