HomeMy WebLinkAboutReso 2008-043
RESOLUTION NO. 2008-043
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN INCREASE IN SEWER
SERVICE RATES FOR F]SCAL YEARS 2007/2008 THROUGH
2009/2010
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] 9, 2005, the City Council of the City of Chula Vista 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 2009/20] 0 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, set forth in the attached
Exhibit A, 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 20] 0; and
WHEREAS, on December 18, 2007, the City Council approved Resolution No. 2007-302
declaring its intention to increase sewer service charges and set a Public Hearing for February 5,
2008 to consider the issue; and
Resolution No. 2008-043
Page 2
WHEREAS, the City Council finds that the City has complied with the requirements of
California Constitution Article 13D, Section 6; and
WHEREAS, the City Council finds that the City provided written notice by mail of the
proposed increase in sewer service charges to the record owners of each identified parcel upon
which the increased charge is proposed for imposition and that the notice included the amount of
the charge increase, the basis upon which the amount of the proposed charge increase was
calculated, the reason for the proposed charge increase, together with the date, time, and location
of the public hearing on the proposed charge increase; and
WHEREAS, the City Council held a public hearing on February 5, 2008 to consider the
proposed increase in sewer service charges; and
WHEREAS, the City Council considered all protests, both oral and written, to the
proposed increase in sewer service charges; and
WHEREAS, the City Council finds that the revenues derived from the increased sewer
service charges will not exceed the funds required to provide the property related service; and
WHEREAS, the City Council finds that the revenues derived from the increased sewer
service charges shall not be used for any purpose other than that for which the charge was
imposed; and
WHEREAS, the City Council finds the amount of the sewer service charges imposed
upon any parcel as an incident of property ownership shall not exceed the proportional cost of
the service attributable to the parcel; and
WHEREAS, the City Council finds that the sewer service charges imposed are for a
service actually used by, or immediately available to, the owner of the property; and
WHEREAS, the City Council finds that written protests against the proposed increased
sewer service charges have not been presented by a majority of owners of the identified parcels.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it approves an increase in sewer service rates as depicted in the attached Exhibit A for fiscal
years 2007/2008 through 2009/2010.
Presented by
Approved as to form by
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Ann Moore
City Attorney
Resolution No. 2008-043
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 5th day of February 2008 by the following vote:
AYES:
Councilmembers:
Ramirez, Rindone, and Cox
NAYS:
Councilmembers:
Castaneda and McCann
ABSENT:
Councilmembers:
None
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ATTEST:
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Donna R. Norris, eM ,Interim City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA)
I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 2008-043 was duly passed, approved, and adopted by the City Council
at a regular meeting ofthe ChuIa Vista City Council held on the 5th day of February 2008.
Executed this 5th day of February 2008.
Resolution No. 2008-043
Page 4
EXHIBIT A
Proposed Rate Schedule FY 2008-FY 2010
Meter Size FY 2008 FY 2009 FY 2010
Monthly Fixed Service Char2e
$/M onth $lMonth $/Month
Single Fami]y $7.35 $8.00 $8.73
All Others
5/8 $6.65 $7.30 $8.03
3/4 $6.65 $7.30 $8.03
] $]1.08 $]2.]7 $]3.38
I 1/2 $22.]6 $24.35 $26.76
2 $35.45 $38.96 $42.81
3 $66.47 $73.05 $80.28
4 $110.78 $121.74 $133.79
6 $221.55 $243.48 $267.59
8 $354.48 $389.57 $428.]4
Volume Charge/HCF
Residential
Single Family $2.99 $3.27 $3.57
Multi Familv $3.05 $3.33 $3.63
Mobile Homes $3.05 $3.33 $3.63
Non-Residential
Commercial-Low $3.05 $3.33 $3.63
Commercial - Med $4.13 $4.52 $4.94
Commercial - High $6.29 $6.89 $7.55
Special Users Varies Varies Varies
*HCF - Hundred Cubic Feet
Rates Include Storm Drain Fee and Sewer Facilities Replacement Fee