HomeMy WebLinkAboutReso - CC - 112-2016RESOLUTION NO. 112-2016
A RESOLUTION OF THE CITY COUNCILOF THE CITY OF BURLINGAME,
CALIFORNIA, ESTABLISHING WATER RATES
FOR CALENDAR YEARS 2017, 2018 AND 2019
The City Council of the City of Burlingame does resolve as follows:
WHEREAS, the City purchases 100% of its drinking water supply from the San
Francisco Public Utilities Commission (SFPUC); and
WHEREAS, in the last ten years the SFPUC has nearly quadrupled its wholesale water
rates and is planning to increase wholesale rates by an additional 30% over the next three
years; and
WHEREAS, many of the City's water distribution pipelines are 70 to 100 years old and
are approaching the end of their useful lives; and
WHEREAS, the City has been proactively replacing the aging infrastructure for more
than a decade, but still has a substantial backlog of capital improvement needs to address; and
WHEREAS, at the August 15, 2016 study session, staff and Bartle Wells Associates
(BWA), a rate consultant firm, presented the City Council with an overview of the potable water
system, including details of the capital needs, finances, and rate adjustments necessary to
cover the escalating cost of the SFPUC wholesale water rates, while maintaining the Capital
Improvement Program (CIP) funding at current minimal levels of $2.5 million per year; and
WHEREAS, the City Council directed staff to develop a rate increase that would provide
a capital funding level between $2.5 million and $4.5 million per year to address the backlog of
work; and
WHEREAS, on September 6, 2016, the City Council reviewed rate options for funding
water system capital improvements, and the continued increases in the cost of water purchases
from SFPUC, and directed staff to proceed with three years of rate increases, which would allow
for a phased -in funding for the CIP from the current level of $2.5 million per year to $3.5 million
per year over a period of five years; and
WHEREAS, based on the revenue requirements to operate and maintain the local water
distribution system, fund the CIP and associated debt service, and pay for the increased costs
of wholesale water purchases from SFPUC, the proposed rate increases are approximately
9.0% in 2017, 7.5% in 2018, and 7.5% in 2018; and
WHEREAS, the proposed rates were calculated by projecting annual revenue
requirements and setting rates to recover the cost of providing service, including costs for
wholesale water supply from the SFPUC, operating and maintenance expenses, debt service,
and high-priority capital improvements; and
WHEREAS, Chapter 15.04.010 of the Burlingame Municipal Code provides that the City
Council shall establish fees and charges for the administration of water services by resolution;
and
WHEREAS, In compliance with the requirements of Proposition 218, public hearing
notices and educational brochures were mailed to rate payers on October 5, 2016 sufficiently in
advance of the 45 day notification requirements prior to the public hearing; and
WHEREAS, written protests were not received from a majority of affected parcels; and
WHEREAS, water service charges include two components as follows:
• Bi -Monthly Base Service Charges: These are fixed charges that are based on
each customer's water meter size and are billed independently of water
consumption.
• Water Consumption Charges: These charges are billed based on metered water
usage as measured in units of 1,000 gallons. Water Consumption Charges for
single family residences are billed according to a 5 -tiered rate structure. All other
customers pay a uniform rate for all water use.
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
COUNCIL, AS FOLLOWS:
1. In accordance with the direction of the City Council on September 6, 2016 and pursuant
to the Proposition 218 Notice of Public Hearing, water charges shall be implemented as
follows:
BI -MONTHLY BASE SERVICE CHARGES
Fixed charge billed based on water meter size
Meter Size
Rates Effective on or after Jan 1
2017 2018 2019
5/8 & 3/4 -inch
$72.72
$78.17
$84.03
1 -inch
121.20
130.28
140.05
1% -inch
242.40
260.57
280.10
2 -inch
387.84
416.91
448.16
3 -inch
727.20
781.70
840.30
4 -inch
1,212.00
1,302.83
1,400.50
6 -inch
2,424.00
2,605.67
2,801.00
8 -inch
3,878.40
4,169.07
4,481.60
BI -MONTHLY WATER CONSUMPTION CHARGES
Billed per 1,000 gallons of metered water consumption
Single Family
Rates Effective on or after Jan 1
Residential Tiers
2017
2018
2019
Tier
0-4,000 gal
$8.47
$9.11
$9.79
Tier
4,001-8,000 gal
9.50
10.21
10.98
Tier 3
8,001-16,000 gal
10.54
11.33
12.18
Tier 4
16,001— 24,000 gal
11.58
12.45
13.38
Tier 5
24,000 gal & above
12.61
13.56
14.58
Commercial/Multi-Family/Duplex/Other
All Water Use $9.92 $10.66 $11.46
2. The tiered rates will apply to all single family residential customers in Burlingame and
adjacent areas. A
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, do hereby certify that the
foregoing Resolution was introduced at a regular meeting of the City Council held on the 5th day
of December, 2016 and was adopted thereafter by the following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS:NONE
Meag a s el -Shearer, City Clerk