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HomeMy WebLinkAboutReso 2007-302 RESOLUTION NO. 2007-302 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE CITY'S INTENTION TO INCREASE SEWER SERVICE CHARGES AND SETTING A PUBLIC HEARING TO CONSIDER SAID INCREASE FOR FEBRUARY 5, 2008, AT 4:00 P.M TO CONSIDER ALL PROTESTS AGAINST THE PROPOSED INCREASE TO THE SEWER SERVICE CHARGES WHEREAS, the Sewer Service Charge is the fee paid by all users who are connected to the City's wastewater collection system to fund the cost of wastewater treatment and maintenance of the system; and WHEREAS, on July 19, 2005, the City Council approved a five-year rate plan, which set the schedule for the adjustment of sewer service fees for Fiscal Year 2005/2006 through Fiscal Year 2009/2010 based on the findings and recommendations of the "Cost of Service and Rate Study for Sewer Services" prepared by Camp Dresser & McKee, Inc. (CDM); and WHEREAS, the adopted rate plan has not met the revenue objectives due to a combination of factors, including, but not limited to, the overestimation of the baseline customer data used in the 2005 Rate Study and the unanticipated shortfalls in the growth projections for new accounts; and WHEREAS, in April 2007, the City retained CDM to prepare another study to re- evaluate the performance of the adopted rate plan, re-evaluate the cost allocation among the various user classes to ensure that it was proportional to use and equitable, re-evaluate the sewer- billing method for single-family residential users, and develop a financial plan; and WHEREAS, CDM has completed the "Cost of Service and Rate Study for Sewer Services" dated October 2007 and has determined that the existing rates were inadequate and would not generate the revenues needed to meet the obligations of the fund for wastewater treatment, system operation and maintenance, and that rates needed to be adjusted and in some cases increased; and WHEREAS, at the current sewer rate level, necessary expenditures will exceed Fiscal Year 2008 revenues by $3.3 million; and WHEREAS, the adoption of the proposed sewer rate structure will ensure that the City recovers sufficient revenues to meet projected expenditures for the maintenance and operation of the City's sewer collection and treatment system for Fiscal Year 2008 through 2010. Resolution 2007-302 Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it declares its intention to increase the sewer service charges and sets a public hearing for February 5, 2008, at 4:00 p.m. to consider all protests against the proposed increase to the sewer service charges. Presented by J~~ Eng' ering d General Services Director Approved as to form by ~~<~~\A Ann Moore City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this 18th day of December 2007 by the following vote: AYES: Councilmembers: Ramirez, Rindone, and Cox NAYS: Councilmembers: Castaneda, McCann ABSENT: Councilmembers: None chery0~vt:r ATTEST: ( /fA Susan Bigelo , 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. 2007-302 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 18th day of December 2007. Executed this 18th day of December 2007. II ;J! ~ JCr;:;>t t Susan Bigelow, MMt;' City Clerk