HomeMy WebLinkAboutResolution No. 09-C046RESOLUTION NO. 09-C46
A RESOLUTION OF THE CITY. COUNCIL OF THE
CITY OF AZUSA, TO ADOPT NEW WATER RATES
EFFECTIVE JULY 1, 2009, AND JULY 1, 2010.
WHEREAS, the City of Azusa issued revenue bonds in 2006 to construct a new water
filtration plant to meet more stringent water quality regulations;' and
WHEREAS, debt service on the 2006 revenue bonds will be about $3 million in Fiscal
Year 2009-2010; and
WHEREAS, bond agreements entered into by the City of Azusa require the Water Utility
net income to be equal to 1.25 times the debt service payments; and
WHEREAS, the recent economic downturn has stopped housing growth in Rosedale,
resulted in higher foreclosure rates, and reduced the amount of interest income the Water Utility
typically receives on its reserve funds; and
WHEREAS, the drought in California occurred after the 2006 revenue bonds were
issued, and forced the Water Utility to aggressively promote water conservation which reduced
revenues from rates; and
WHEREAS, in 2008, the Water Utility eliminated some charges included in its rate
structure to create a more equitable water rate schedule, but which reduced revenues by about
$750,000 per year; and
WHEREAS, a recent cost of service study performed by HDR Engineering concluded
that without rate increases, the Water Utility would not be able to fulfill its debt coverage
obligations on the 2006 revenue bonds; and
WHEREAS, the proposed water rates have been prepared by a third party consultant and
reviewed by City staff, and are believed to allocate costs equitably to all customers based on the
cost to serve the various water utility customer classes; and
WHEREAS, the proposed rate adjustments are deemed necessary to meet the future
revenue requirements of the water utility with respect to forecasted operating, maintenance and
capital costs, debt coverage ratio requirements, reserve funds, and to make debt service payments
on the 2006 Revenue Bonds.
WHEREAS, public notice has been provided to all customers of record in the water
utility service territory 45 days in advance of this June 15, 2009, public hearing, pursuant to and
in compliance with Proposition 218; and
WHEREAS, a majority protest by property owners of proposed water rate adjustments
has not been filed with the City of Azusa prior to the close of this public hearing on June 15,
2009; and
WHEREAS, the City Council has conducted a Public Hearing and considered all
comments and protests from interested persons;
0 0
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, DOES
FIND AND DECLARE THAT:
SECTION 1: Adoption of Water Rate Schedule. That the water rate schedule attached
hereto and incorporated herein as Exhibit A is hereby adopted.
SECTION 2: Effective Date of Rates. That the new water rates shall be effective for
all utility bills mailed to customers on and after the effective dates set
forth in Exhibit A.
SECTION 3. Authorization. The Mayor shall sign and the City Clerk shall certify the
passage and adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 15th day of June, 2009.
A! 1 Ccrc�L4
JosepR. Rocha, Mayor
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APPROVED AS TO FORM:
By: i;�
Best Best & Krieger LLP
City Attorney
I HEREBY CERTIFY that the foregoing Resolution No. 09- C-46, was duly adopted by
the Azusa City Council, at a regular meeting thereof, held on the 15th day of June, 2009 by the
following vote of the Board.
AYES: CITY COUNCIL MEMBERS: CARRILLO, GONZALES, MACIAS, HANKS, ROCHA
NOES: CITY COUNCIL MEMBERS: NONE
ABSENT: CITY COUNCIL MEMBERS: NONE
Vera Mendoza, City Clerk v
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:
Effective July 1, 2009
Effective July 1, 2010
Service Size Monthly Charge
Monthly Charge
5/8"-3/<" $14.74
$17.03
F, 20.99
24.26
1.5" 36.50
42.18
2" 55.18
63.76
3" 114.39
132.18
4" 192.18
222.08
6" 394.56
455.95
8" 565.75
653.78
10" 908.21
1,049.53
12" 1,343.98
1,553.10
Minimum Charge: If a customer has no consumption, the
minimum charge shall be the
monthly meter service charge.
EFFFECTI V E 7/1/2009
Resolutions - 1
Water Rate Schedule (continued)
B. COMMODITY CHARGE:
The commodity charge 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. Each
meter size is allotted a
quantity of water considered to be average for that size of service, units in excess of that
allotment represents a heavier use of the facilities of the water system, and therefore are
billed according to the commodity rate schedule.
Effective July 1, 2009
Effective July 1, 2010
Service Size Units Rate (ver CCF)
Rate (per CCF)
5/8" — Y," — 1" 0-12 ccf $0.871
$1.007
> 12 ccf $1.690
$1.953
1.5" — 2" 0-100 ccf $0.871
$1.007
> 100 cef $1.690
$1.953
3"- 4" 0-600 ccf $0.871
$1.007
> 600 ccf $1.690
$1.953
6" — 12" 0-10,000 ccf $0.871
$1.007
> 10,000 ccf $1.690
$1.953
Golf Course $1.223
$1.413
EFFFECTIVE 7/1/2009
Resolutions - 2
Water Rate Schedule (continued)
C. EMERGENCY COMMODITY 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 an emergency commodity rate schedule shall be
used. If the water utility declares a Phase III water shortage in compliance with Rule 21, the
following Emergency Commodity Rate Schedule shall be effective and shall continue in effect
until the Phase III water shortage has ended:
Effective July 1, 2009
Effective July 1, 2010
Service Size Units
Rate (per CCF)
Rate (per CCF)
1
5/8" — 3/<" — 1" 0-12 ccf
$0.871
$1.007
13-36 ccf
$1.842
$2.129
>36 ccf
$2.623
$3.031
1.5" — 2" 0-100 ccf
$0.871
$1.007
101-200 ccf
$1.842
$2.129
>200 ccf
$2.623
$3.031
3"- 4" 0-600 ccf
$0.871
$1.007
601-1,200 ccf
$1.842
$2.129
>1,200 ccf
$2.623
$3.031
6" —12" 0-10,000 ccf
$0.871
$1.007
10,001-20,000 ccf
$1.842
$2.129
>20,000 ccf
$2.623
$3.031
Golf Course
51.359
$1.571
EFFFECTIVE 7/1/2009
Resolutions - 3
Water Rate Schedule (continued)
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".
Effective July 1, 2009 Effective July 1, 2010
Monthly Charge Monthly Charge
1. Meter Charge (same as 1" meter charge) $20.99 $24.26
Commodity Charge:
Units (ccf�100 cubic feet) Rate (per CCF) Rate (per CCF)
0-12 ccf $0.871 $1.007
>12 ccf $1.690 $1.953
3. Fire Service Charge:
$10.00 effective July 1, 2009, and $11.56 effective July 1, 2010 per pipe
diameter inch.
Minimum Charge: If customer has no water consumption, the minimum charge shall be the
meter charge plus Fire Service Charge.
EFFFECTI V E 7/1/2009
Resolutions - 4
Water Rate Schedule (continued)
E. FIRE SERVICE CHARGE:
Fire service connections are provided for fire protection only. If a fire service is used for
any purpose other than for fire fighting, a minimum charge of $74.00 shall be assessed
effective July 1, 2009, and $85.00 shall be assessed effective July 1, 2010, 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 fire fighting 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.
Customers with dedicated separate fire service meters shall be subject to the following
monthly charges:
Effective July 1, 2009 Effective July 1, 2010
Service Size Monthly Charge Monthly Charge
1" $10.00 11.56
2" 20.00 23.12
3 33.00 38.15
4" 50.00 57.80
6" 85.00 98.26
8" 125.00 144.50
10" 170.00 196.52
12" 208.00 240.45
Commodity charges as set forth in Section B shall apply to all consumption of water used
for fire suppression.
EFFFECI7VE 7/1/2009 Resolutions - 5
Water Rate Schedule (continued)
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 charges shall be double the above applicable
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.
EFFFECTI V E 7/l/2009
Resolutions - 6
Water Rate Schedule (continued)
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.
1. 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 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.
EFFFECTIVE 7/1/2009
Resolutions - 7
Water Rate Schedule (continued)
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.
L 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.
Land Use Category Development Acres $ Per Acre $ Per Unity/SF/AC
Residential Single -Family 620 $10,521.34 $1,753.63/Unit
Residential Multi -Family 38 $17,971.26 $1,123.22/1Jnit
Commercial -Low 958 $8,064.44 $0.80/SF
Industrial 667 $8,678.96 $0.34/SF
School 8.7 $6,796.94 $6,796.94/AC
Park 184 $3,110.45 $3,110.45/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.
Land Use Category Development Acres $ Per Acre $ Per Unity/SF/AC
Residential Single -Family 620 $4,584.10 $764.10/Unit
Residential Multi -Family . 38 $7,830.45 $489.41/Unit
Commercial -Low 958 $3,513.42 $0.34/SF
Industrial 667 $3,781.68 $0.14/SF
Park 184 $1,355.49 $1,355.49/AC
School 8.7 $2,96153 $2,96L53/AC
EFFFECTIVE 7/1/2009 Resolutions - 8
Water Rate Schedule (continue) -
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.
Lateral Size Total Deposit
10" x 6" $ 6,800
10" x 8" $ 7,900
12" x 6" $ 8,600
12" x 8" $ 8,600
10" x 10" $10,000
L. FIRE HYDRANT INSTALLATION CHARGE:
Estimated fire hydrant installation charge for installing fire hydrants will include labor,
overhead, materials and equipment.
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.
Materials/Labor Total Deposit
12" Main or less $5;000
EFFFECTI V E 7/1/2009 Resolutions - 9
Water Rate Schedule (continued)
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.
EFFFECTIVE 7/1/2009
Resolutions - 10