HomeMy WebLinkAboutResolution No. UB-03-2016RESOLUTION NO. UB -03-2016
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE
CITY OF AZUSA, CALIFORNIA, TO AMEND THE AZUSA LIGHT &
WATER WATER RATE SCHEDULES
WHEREAS, the City of Azusa owns and operates a water utility that provides water to over
23,000 customers; and
WHEREAS, on April 1, 2015, Governor Brown issued an Executive Order mandating that
the State Water Resources Control Board impose a 25% state-wide average reduction in urban water
usage from a 2013 baseline; and
WHEREAS, On April 18, 2015, the State Water Resources Control Board issued
regulations for implementing the Executive Order, which included a tier system for water reduction
targets by water agency ranged from 8% to 36%; and
WHEREAS, Azusa Light & Water was required to reduce water consumption by 20% from
2013 water consumption levels or be subject to fines; and
WHEREAS, the mandated water conservation and drought conditions have resulted in lower
sales and an operating budget shortfall of about $2.8 million is projected for FY 2016/2017; and
WHEREAS, water rate adjustment to increase revenues by 19.75% in FY 2016/17 and 2.0%
annually in FY 2017/18 through FY 2020/21 and a drought rate schedule which includes commodity
charges that can be administratively implemented by the Director of Utilities and ratified by the
Utility Board to ensure water utility collects sufficient revenues to cover its expenses during periods
of lower water sales needs to be incorporated in Water Utility's Rules and Regulations; and
WHEREAS, a Public Hearing to consider the water rate adjustments was held May 23,
2016;
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amendment of Azusa Light & Water "Water Rate Schedules". The
Utility Board/City Council amends the Water Rate Schedules ofAzusa Light
& Water in its entirety as set forth in Exhibit "A" which is attached to this
resolution and made a part hereof.
SECTION 2. Effective Date. The amended Azusa Light & Water "Water Rate
Schedules" shall become effective July 1, 2016 and operative for all
utility bills rendered on and after August 1, 2016, and each July 1
thereafter.
PASSED, APPROVED and ADOPTED this 27th day of June, 2016.
z—voJ /��
Boardmember/Mayor
ATTEST:
J r a cc Comej , Jr.,
Secretary/City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. UB -3-2016 was duly adopted by
the Utility Board/City Council of the City of Azusa at its regular meeting held on the 27`h day of
June, 2016, by the following vote of Council:
AYES: BOARD/COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARD/COUNCILMEMBERS: NONE
ABSENT: BOARD/COUNCILMEMBERS: NONE
��
J fr a e Cornejo, r.,
Secretary/City Clerk
APPROVED AS TO FORM:
— 1�
City Att mey
Best Best & Krieger, LLP
EXHIBIT "A"
WATER RATE SCHEDULE
The following schedule of rates is fixed and established as the rates to be collected by Azusa
Light & Water for supplying water to its customers within the certificated service territories of
the City of Azusa:
A. METER SERVICE CHARGE:
The basic monthly meter service charge for water supplied to domestic, commercial,
industrial, and municipal customers of Azusa Light & Water shall be as follows:
Meter July 1, 2016 July 1, 2017 July 1, 2018 July 1, 2019 July I, 2020
Size
5/8"-3/4" 14.58 14.87 15.17 15.47 15.78
1" 23.75 24.23 24.71 25.20 25.71
11/2" 46.68 47.62 48.57 49.54 50.53
2" 74.20 75.69 77.20 78.74 80.32
3" 147.59 150.54 153.55 156.62 159.75
4" 230.14 234.75 239.44 244.23 249.12
6" 459.47 468.66 478.03 487.59 497.35
8" 734.66 749.36 764.34 779.63 795.22
10" 1,927.16 1,965.71 2,005.02 2,045.12 2,086.02
12" 2,431.68 2,480.32 2,529.92 2,580.52 2,632.13
Minimum Charge: If a customer has no consumption, the minimum charge shall be the
monthly meter service charge.
B. BASELINE COMMODITY CHARGE:
The baseline commodity
charge shall
be in effect during
times when no
drought is
declared pursuant to Rule
No. 21. The
"baseline"
assumes that sales or consumption by
all customers is approximately 20% below
sales
during calendar
year 2013.
Sales or
consumption is measured
in increments of cubic feet. One cubic foot is 7.48
gallons of
water. Each unit of water is billed as 100
cubic feet or 748 gallons. One hundred cubic
feet is commonly referred to as CCF.
Commodity
rates areset based on the cost to
provide service for the respective meter size, and
the tiered
rates below shall
be used to
allocate costs in proportion to consumption
for the respective
meter sizes.
Meter Size Tier CCF
July 1, 2016 July 1, 2017
July 1, 2018 July 1, 2019 July 1.2020
5/8" -314" 1 0-4
1.050
1.071
1.093
1.114
1.137
2 5-15
1:714
1.748
1.783
1.819
1.855
3 > 15
2.162
2.206
2.250
2.295
2.341
1„ 1 0-7
1.050
1.071
1.093
1.114
1.137
2 8-25
1.714
1.748
1.783
1.819
1.855
3 > 25
2:162
2.206
2.250
2.295
2.341
l 0-15
1:050
1.071
1.093
1.114
1.137
1 1/2"
2 16-50
1.714
1.748
1.783
1.819
1.855
3 > 50
2.162
2.206
2.250
2.295
2.341
1 0-23
1.050
1.071
1.093
1.114
1.137
2„
2 24-80
1.714
1.748
1.783
1.819
1.855
3 > 80
2.162
2.206
2.250
2.295
2.341
1 0-47
1.050
1.071
1.093
1.114
1.137
31'
2 48-159
1.714
1.748
1.783
1.819
1.855
3 > 159
2:162
2.206
2.250
2.295
2.341
1 0-73
1.050
1.071
1.093
1.114
1.137
4„
2 74-249
1.714
1.748
1.783
1.819
1.855
3 > 249
2.162
2.206
2.250
2.295
2.341
1 0-145
1.050
1.071
1.093
1.114
1.137
6" 2 146-498
1.714
1.748
1.783
1.819
1.855
3 > 498
2.162
2.206
2.250
2.295
2.341
1 0-233
1.050
1.071
1.093
1.114
1.137
8" 2 234-797
1.714
1.748
1.783
1.819
1.855
3 > 797
2:162
2.206
2.250
2.295
2.341
1 0-610
1.050
1.071
1.093
1.114
1.137
10" 2 611-2,092
1.714
1.748
1.783
1.819
1.855
3 > 2,092
2.162
2.206
2.250
2.295
2.341
1 0-770
1.050
1.071
1.093
1.114
1.137
12" 2 771-2,640
1.714
1.748
1.783
1.819
1.855
3 > 2,640
2.162
2.206
2.250
2.295
2.341
Golf Course - - Uniform
1.705
1.739
1.774
1.810
1.846
C. COMMODITY DROUGHT RATE SCHEDULE
From time to time the water utility may be required to encourage its
customers to
conserve
water. Conservation activities can significantly reduce the water utility's
revenue, and in order
to meet the water utility's revenue requirements the following commodity
drought rate schedule
shall be used. If the water utility declares a water shortage in compliance
with Rule
21, the
following Commodity Drought Rate Schedule shall be effective and shall
continue in effect
until
the water shortage declaration has ended or is no longer in effect:
Commoditv Charges Tiers July 1, 2016 July 1, 2017 July 1, 2018
July 1, 2019
July 1, 2020
1 1.092 1.114 1.136
1.159
1.182
Drought Phase 1 2 1.779 1.815 1.851
1.888
1.926
Level of Conservation 3 2.302 2.348 2.395
2.443
2.492
-5% from Baseline Golf Course 1.773 1.809 1.845
1.882
1.920
1 1.139 1.162 1.185
1.209
1.233
Drought Phase 11
2 1.854 1.891 1.929
1.968
2.007
Level of Conservation
3 2.465 2.514 2.564
2.616
2.668
-10% from Baseline
Golf Course 1.850 1.887 1.925
1.963
2.002
1 1.192 1.216 1.241
1.265
1.291
Drought Phase III
2 1.942 1.981 2.020
2.061
2.102
Level of Conservation
Le vel
3 2.655 2.708 2.762
2.818
2.874
from Baseline
Golf Course 1.936 1.975 2.015
2.055
2.096
1 1.253 1.278 1.304
1.330
1.356
Drought Phase IV
2 2.045 2.086 2.128
2.170
2.214
Level of Conservation
3 2.881 2.939 2.997
3.057
3.118
-20% from Baseline
Golf Course 2.035 2.076 2.117
2.160
1203
D. RESIDENTIAL SERVICE WITH FIRE SPRINKLER SYSTEM:
The following three rate components shall be applied to residential properties that are
required to have fire sprinkler systems, where such properties: (1) have lot sizes less than
one-quarter of an acre (10,890 square feet); and (2) have an actual meter service that is
larger than I".
1. Meter Charge (same as 1" meter charge) See Section A of this Schedule
2. Commodity Charge: See Section B of this Water Rate Schedule
3. Commodity Drought Charge: See Section C of this Water Rate Schedule
(when in effect)
4. Fire Service Charge: See section E of this Water Date Schedule
Minimum Charge: If customer has no water consumption, the minimum charge shall be the
meter charge plus Fire Service Charge.
E. FIRE SERVICE CHARGE:
Customers with dedicated separate fire service meters shall be subject to the following
monthly charges:
Meter Size July 1, 2016 July 1, 2017 July 1, 2018 July 1, 2019 July 1, 2020
3/4" 2.69 2.74 2.80 2.86 2.91
V 3.94 4.02 4.10 4.18 4.27
2" 10.81 11.03 11.25 11.47 11.70
3" 22.68 23.13 23.59 24.06 24.55
4" 44.54 45.43 46.33 47.26 48.21
6" 100.74 102.76 104.81 106.91 109.05
8" 175.69 179.20 182.79 186.44 190.17
10" 275.61 281.13 286.75 292.48 298.33
Commodity charges as set forth in Section B shall apply to all consumption of water used
for fire suppression.
Fire service connections are provided for fire protection only. If, during any month, a fire
service is used for any purpose other than for firefighting, a penalty charge (see below)
shall be paid in addition to the commodity charge for the actual amount of water used. If
a fire service customer uses a fire service for other than emergency firefighting
repeatedly, the customer, upon notice of the water utility manager, may be disconnected
from service for violation of the intended use of a fire service connection.
Julv 1, 2016 July 1, 2017 July 1, 2018 July 1, 2019 July 1, 2020
$101 $104 $106 $108 $110
F. LIFELINE RATE:
Upon written application to Azusa Light & Water, a water customer who meets the
following standards is eligible for a $2.20 discount from the basic monthly meter service
charge.
The customer must be either:
a. 62 years of age or older; or
b. Disabled within the definition of 20 C.F.R. 404.1505 and presently is
receiving disability Social Security benefits.
2. The customer must be a resident of a single-family dwelling unit with a water
meter no larger than 3/4".
3. The customer shall have been a water customer at the service address for at least
the previous 12 months prior to the application for the lifeline rate.
4. The customer's household income is at or below 60% of the Los Angeles County
median income level.
5. Low-income customers who qualify for the lifeline rate shall re -apply every 12
months.
G. SPECIAL ZONE RATE:
The City of Azusa Light & Water has defined a special distribution zone rate to recover
costs identified with the service associated with that specifically designated service area.
For water supplied to this defined area, the commodity charges shall be double the above
applicable commodity rates. The area was specifically designated through an agreement
between the City of Irwindale and the City of Azusa, wherein, the City of Irwindale
requested the City of Azusa extend its water utility service into the City of Irwindale in
order to provide water service to those special customers in the City of Irwindale. This
rate applies to water customers with accounts specially coded for that purpose.
H. REPLACEMENT WATER COST ADJUSTMENT FACTOR (RWCAF):
The Replacement Water Cost Adjustment Factor has been established to recover the costs
of imported water required to fulfill the water systems requirements under the judgment
of the adjudication of the Main San Gabriel Basin Watermaster. Each year in May the
Main San Gabriel Basin Watermaster recommends to the Superior Courts of California
the adoption of a basin safe yield. Said safe yield fluctuates annually from a historic low
of 140,000 acre feet of allowable extraction to a historic high of 230,000 acre feet of
extraction. This variable results in fluctuations of purchased imported water
requirements for the City of Azusa. When the safe yield is high, the RWCAF is reduced,
and when the safe yield is low the RWCAF is set higher.
The Azusa Light & Water shall determine the RWCAF pursuant to the following
methodology prior to the beginning of each year for the City of Azusa's water system.
The Director of Utilities shall notify the City Council of the new RWCAF. It shall be
applied to all water bills beginning the first billing cycle of the new fiscal year.
Determine Azusa's Integrated Production Rights (R) for the following fiscal year
based on the Safe Yield declared by the Main San Gabriel Basin Watermaster in
the spring of each year.
2. Project Azusa's total water production (P) based on estimated sales (S) in units
(CCF) of water, for the following year.
3. Derive the amount of Replacement Water (W) required by subtracting (R) from
(P).
4. Derive costs ($) associated with (W) from the Main San Gabriel Basin
Watermaster which include replacement water costs I from the responsible
agencies, administrative charges and in lieu fees.
5. Derive RWCAF by dividing ($) by (S).
6. If the RWCAF is less than $0.01/CCF, then apply $0.01/CCF commencing in July
until the month ($) is attained, than discontinue the charge.
Nothing in this section is meant to preclude the Director of Utilities from practicing
sound ground water management activities. Each year the RWCAF is set independent
from cyclic storage and conjunctive use of ground water which is managed separately,
and for the benefit of the public utility.
I. WATER SYSTEM DEVELOPMENT FEE:
The City of Azusa adopted an Ordinance in 1988 creating a Water System Development
Fee. The City Council determined that future development within the water system
service area would result in increased demands that would exceed the capacity of the
existing water system. The Water System Development Fee was created to fund the cost
of the future water system improvements and is imposed upon future development within
the water system service area. If there is any change in floor footage, the Water System
Development Fee shall apply. Fees must be paid to Azusa Light & Water prior to the
final Water Plan approval.
Land Use Category $ Per Acre $ Per Dwelling Unit (DU)/SF/AC
Residential $11,668.64 $1,944.86/ DU
Commercial $8,943.81 $0.89/SF
Industrial $9,625.35 $0.38/SF
School $7,538.09 $7,538.09/AC
Park $3,449.62 $3,449.62/AC
J. WATER SYSTEM ANNEXATION FEE:
The City of Azusa adopted an Ordinance in 1996 creating a Water System Annexation
Fee to allow properties outside the existing service area to be served by the existing
water system. Fees must be paid to Azusa Light & Water prior to the final Water Plan
approval.
Land Use Category $ Per Acre $ Per Dwelling Unit (DU)/SF/AC
Residential $5,038.97 $847.42/DU
Commercial $3,896.54 $0.38/SF
Industrial $4,194.05 $0.16/SF
School $3,284.47 $3,284.47/AC
Park $1,503.31 $1,503.31 /AC
K. FIRE SERVICE INSTALLATION CHARGE:
Estimated fire service connection charges, including Double Detector Check for
installation of fire protection laterals, includes labor, overhead, equipment and materials.
The City will be responsible for installation of Double Detector Check assembly.
In the event the estimated charge is more than the actual cost of installation, the applicant
will receive a refund. If the deposit is less than the actual installation cost, the applicant
will be billed for additional charges.
Meter Size Total Deposit
4" $ 7,500
6" $ 9,500
8" $ 10,500
10" $ 11,500
12" $ 12,500
L. FIRE HYDRANT INSTALLATION CHARGE:
Estimated fire hydrant installation charge for installing fire hydrants will include labor,
overhead, materials and equipment. There is a Fire Hydrant Traffic Incident Hit Hydrant
impact fee that is required to be paid with the additional cost to repair and the water loss.
The Fire Hydrant relocation Fee is an impact fee and is required to be paid prior to Water
Plan approval. The Fire Hydrant Inspection Fee is required for fire hydrant inspections.
The relocation, hit hydrant impact fee and inspection fee are additional fees and non-
refundable.
In the event the estimated charge is more than the actual cost of installation, the applicant
will receive a refund. If the deposit is less than the actual installation cost, the applicant
will be billed for additional charges.
Water Main Installation Total Deposit
6" $ 9,500
8" $ 10,500
10" $ 11,500
12" $ 12,500
Traffic Incident Hit Hydrant Impact Fee: $1,500
Fire Hydrant Relocation Impact Fee: $1,500
Fire Hydrant Inspection Fee: $1,500
M. DOMESTIC METER INSTALLATION CHARGE:
Charges for installation of meters include labor, equipment and materials and overhead.
An estimate of installation charges will be determined by the Utility and a deposit in that
amount will be required prior to commencement of installation.
In the event the estimated charge is more than the actual cost of installation, the applicant
will receive a refund. Should the deposit be less than the actual installation cost, the
applicant will be billed for the additional charges.
Meter Size Total Deposit
3/e"-1" $3,500
2" $4,000
4" $7,500
6" $9,500
There is a fee for a water service disconnection from the mainline deposit.
Charges for disconnection include labor, equipment and materials and overhead.
An estimate of installation charges will be determined by the Utility and a deposit in that
amount will be required prior to commencement of installation.
In the event the estimated charge is more than the actual cost of installation, the applicant
will receive a refund. Should the deposit be less than the actual installation cost, the
applicant will be billed for the additional charges.
Water Disconnection from the Mainline (Deposit): $3,200