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HomeMy WebLinkAboutReso 2005-260 RESOLUTION NO. 2005-260 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE BY ADJUSTING AND INCREASING SEWER SERVICE CHARGES FOR EACH OF THE NEXT FIVE YEARS AND APPROVING THE TRANSFER OF FUNDS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE SEWER SERVICE REVENUE FUND WHEREAS, the sewer service fee is paid by all users who are connected to the City's wastewater collection system; and WHEREAS, revenues derived from this fee are used to fund the cost of wastewater treatment, system maintenance and operation; and WHEREAS, on July 22, 2003, the City Council approved a new sewer service rate structure and a four-year rate plan for Fiscal Years 2004 through 2007; and WHEREAS, the new rate structure primarily changed the billing method for single- family residential users from a flat-fee structure to a consumption-based structure, utilizing the customers' winter water usage (winter average) as the basis of the rate; and WHEREAS, after two years, staff has verified that the "winter average" method is an accurate technique to determine sewer service charges, but there were early indications that the rate structure was not meeting the program's revenue objectives/needs; and WHEREAS, the City retained a consultant, Camp Dresser McKee, Inc. (CDM), to analyze the situation and prepare a comprehensive rate study and rate structure for the City of Chula Vista (Cost of Service and Rate Study for Sewer Services) which would reflect the estimated reasonable cost of providing services related to the Chula Vista sewerage system; and WHEREAS, based on the findings of the follow-up study, it was determined that, over the long term, the existing rates would not generate the revenues needed to meet the obligations of the sewer service-related funds (i.e. for wastewater treatment and system operation and maintenance); and WHEREAS, the adoption of the proposed sewer rate structure, set forth in Attachment A, will ensure that the City recovers sufficient revenues to meet projected sewer-related expenditures for Fiscal Years 2006 through 2010 - including reimbursements to the General Fund for the maintenance and operation of the City's sewer collection and treatment system; and WHEREAS, on May 17, 2005, the City Council approved Resolution 2005-161 declaring the City's intention to adjust and in some case increase sewer service charges and setting a public hearing on consideration ofan increase in sewer services charges for July 12,2005; and Resolution No. 2005-260 Page 2 WHEREAS, the City Council held a public hearing on July 12, 2005 to consider an increase in sewer service charges at which time the City Council opened the hearing and no member of the public requested to address the city council; the public hearing was thereafter continued to July 19, 2005 and the City Council considered all public protests; and WHEREAS, Attachment A contains a revised rate structure, which reflects actual consumption of its customers; and WHEREAS, the City Council has determined that the amount of the fee levied for sewer service does not exceed the estimated cost of providing the services as described in the Cost of Service and Rate Study for Sewer Services; and WHEREAS, the "Monthly Service Charge" shown on Attachment A includes a $0.70 storm drain fee, which is deposited into a separate fund, and will not be impacted by the proposed rate changes to the sewer service fees; and WHEREAS, the Trunk Sewer Capital Reserve, which was established in 1985, is funded through the collection of "capacity fees" from new connections to the City's sewer collection system; and WHEREAS, the fee pays for the use of the City's collection system and San Diego Metro (wastewater) capacity rights; and WHEREAS, with the demands of population growth, sewer capacity requirements continually increase and are being addressed by the City of San Diego's ongoing expansion of the Metro system; and WHEREAS, to finance these new capital facilities, all system participants, including Chula Vista, incur a portion of the debt service, which is included annually in Chula Vista's payment to San Diego Metro; and WHEREAS, staff recommends a transfer of $4.3 million from the Trunk Sewer Capital Reserve Fund the Sewer Service Revenue Fund; and WHEREAS, the transfer of funds from the Trunk Sewer Capital Reserve Fund to the Sewer Service Revenue Fund is consistent with provisions of the Municipal Code that allows funds to be used for the construction or enlargement of sewer facilities to enhance or increase capacity. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby overrule all oral and written protests and approves an amendment to sewer service charges schedule to adjust and increase the monthly sewer rates to the amounts specified in Attachment A, attached hereto and incorporated herein by reference. .~ , , Resolution No. 2005-260 Page 3 BE IT FURTHER RESOLVED that the City Council approves the transfer of $4.3 million ITom the Trunk Sewer Capital Reserve Fund to the Sewer Service Revenue Fund as provided for in the Municipal Code. Presented by .~d..,.,...c~ Sohaib Al-Agha City Engineer Approved as to form by /7 X 0,wc''1:G- CA~ Ann Moore City Attorney Resolution No. 2005-260 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this 19th day of July, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone, and Padilla NAYS: Councilmernbers: None ABSENT: Councilmembers: None "~hrn1;~{~ 0- ATTEST: , -=---~~~~ Susan Bigelow, MMC, City erk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-260 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 19th day of July, 2005. Executed this 19th day of July, 2005. -==- '>{.u tLJ~~ Susan Bigelow, MMC, City lerk __n __ .__ ._~ __,_ _ -.----- -"- Resolution No. 2005-260 Page 5 ATTACHMENT A NEW RATE SCHEDULE FOR FISCAL YEARS 2006 THROUGH 2010 2006 2007 2008 2009 2010 Meter Fixed Monthly Service Charge* Size $/month $/month $/month $/month $/month Single Family Residential 8.47 8.47 9.00 9.25 9.75 An Others 5/8 8.47 8.47 9.00 9.25 9.75 3/4 8.47 8.47 9.00 9.25** 9.75 1 12.34 12.34 ]3.22 13.64 ]4.47 1 1/2 22.00 22.00 23.77 24.60 26.27 2 33.60 33.60 36.43 37.76 40.43 3 60.67 60.67 65.97 68.4 7 73.47 4 99.34 99.34 108.17 112.34 120.67 6 196.00 196.00 213.67 222.00 238.67 8 3]2.00 312.00 340.27 353.60 380.27 Volume Charge $/hcf $/hcf $/hcf $/hcf $/hcf Residential Single Family 2.16 2.36 2.53 2.62 2.70 Multi-Family 2.16 2.36 2.53*** 2.62 2.70 Mobile Homes 2.16 2.36 2.53*" 2.62 2.70 Non-Residential Commercial - Low 2.16 2.36 2.53 2.62 2.70 Commercial - Medium 3.00 3.22 3.38 3.47 3.55 Commercial - High 4.7] 4.94 5.12 5.23 5.33 Special Users Varies Varies Varies Varies Varies * Includes an unchanged $0.70 storm drain fee. ** Due to a typographical error. amount was $14.59 in public notice. Should be $9.25. *** Due to a typographical error, amounts were $2.34 in public notice. Should be $2.53.