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* � * The City of Azusa ,4 •
AGENDA
TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
VIA: HENRY GARCIA, CITY ADMINISTRATOR
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DATE: MARCH 25, 1996
RE: PROPOSED AZUSA VALLEY WATER COMPANY WATER RATE
ADJUSTMENT
Background
On June 1, 1993, the Azusa Public Financing Authority, the Azusa Public Improvement
Corporation and the City of Azusa entered into an Operating and Assignment Agreement (the
"Agreement") relating to the issuance of Series 1993A Revenue Bonds, for the acquisition of
Azusa Valley Water Company ("Company")by the City of Azusa.
In Section 4.7 (Rate Covenant) of the Agreement, the City covenants that it will prescribe, revise
and collect such charges for the services and facilities of the Company which, after allowances
for contingencies and error in the estimates, shall produce Gross Revenues sufficient in each
Fiscal Year to provide Net Revenues equal to at least 1.25 times the Operating Payments coming
due and payable during such Fiscal Year.
Further, water rates for the Company while it was still regulated by the California Public Utilities
Commission prior to become a municipal utility were increased in response to increases in rate
base that occurred as system improvements were placed in service. Several capital improvement
projects have been completed for the Company system during the past calender year. To follow
the past practice, it is proposed here that water rates for the customers of the Company be
adjusted to reflect the increases in its rate base.
Findings
The proposed new tariff creates a second block at a higher commodity cost for different size of
services. No change to the Service Charges. Each size of service still pays the existing rate for a
certain amount of water consumed (base block)which is considered to be the average for the size
of service, but will pay an additional $.13 for each unit of water used above the base block. The
average consumers, therefore, will not see any increase in their water bills.
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LIGHT& WATER DEPARTMENT Joseph F. Hsu, Director
729 North Azusa Avenue
P.O. Box 9500 818/812-5208 (Phone)
Azusa, California 91702 818/334-3163 (Fax)
Pg. 2: Agenda-- Proposed AVWC Water Rate
The customers of the Company will continue to enjoy the lowest water rates in the San Gabriel
Valley even with the increase. A summary of water rate comparison is attached for your
information.
Recommendation
Staff recommends that City Council approve the new Azusa Valley Water Company tariff by
resolution.
Attachments
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA AMENDING THE SCHEDULE OF WATER RATES
AND CHARGES FOR THE AZUSA VALLEY WATER
COMPANY, A DIVISION OF THE CITY OF AZUSA LIGHT
AND WATER DEPARTMENT
WHEREAS, pursuant to Section 78-36 and Section 78-37 of the Azusa
Municipal Code, the rates and charges of the City of Azusa water utility are set by a
Resolution passed by the City Council.
WHEREAS, Section 15079.1 of the guidelines for the implementation
of the California Environmental Quality Act (CEQA) stipulate that the review provisions
of CEQA do not apply to matters of government finance when the funds are for (1 )
meeting operating expenses; (2) purchasing or leasing supplies, equipment or
materials; (3) meeting financial reserve needs and requirements; and (4) obtaining
funds for capital projects necessary to maintain a service within existing service areas,
and
WHEREAS, in order to meet expenses, the City of Azusa has an urgent
need to review the schedule of rates and charges for the Azusa Valley Water
Company, and
WHEREAS, the proposed revisions by nature pertain to government
finance in meeting operating expenses and obtaining funds for capital projects
necessary to sustain and maintain water service within existing service areas,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1 . The City's schedule of rates and charges for its Azusa Valley
Water Company system are hereby amended to read as on Exhibit A
which is attached to this Resolution and made a part of it, and
Section 2. The review provisions of the California Environmental Quality
Act do not apply to these amendments.
Section 3. The amended rates and charges of the Azusa Valley Water
Company shall take effect for all bills rendered on or after May 1 , 1996.
Section 4. The City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS DAY OF , 1996.
MAYOR
EXHIBIT A
City of Azusa Light & Water Department
Azusa Valley Water System
PROPOSED RATES
(Effective 5/1/96)
General Metered Service
(1) Commodity Charge (per 100 cubic-feet or CCF)
(a) 5/8" - 1" meter
O - 17 CCF $ .65
Over 17 CCF .78
(b) 11/2" - 2" meter
0 - 50 CCF $ .65
Over 50 CCF .78
3" - 4" meter
O - 200 CCF $ .65
Over 200 CCF .78
(d) 6" and up
O - 600 CCF $ .65
Over 600 CCF .78
(2) Service Charge: per meter per month
5/8 x 3/4 . . . . . . . $ 6.20
x 3/4 . . . . . . . 9.05
1" . . . . . . . . 15.65
11/2" . . . . . . . . 28.75
2" . . . . . . . . 45.95
3" . . . . . . . . 87.60
4" . . . . . . . . 141 .50
6" . . . . . . . . 249.30
8" . . . . . . . . 360.70
(3) Minimum Charge: The minimum charge shall be the monthly Service Charge
Special Conditions:
The above rates are subject to the Replacement Water Cost Adjustment Factor (RWCAF),
which is to provide automatic adjustment of the Utility's water rate schedule commodity
charges per 100 cubic-feet whenever the Utility is subject to purchasing water to replace water
produced above City's water rights.
(4) Private Fire Protection Service
For each inch of diameter of connection per month . . . $5.35