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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