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HomeMy WebLinkAboutReso - CC - 144-2021DocuSign Envelope ID: 5FF9FE9D-8E6C-4AEE-89BA-F8A24CBD82DE RESOLUTION NO. 144-2021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME, CALIFORNIA, ESTABLISHING SEWER RATES FOR CALENDAR YEARS 2022, 2023, AND 2024 The City Council of the City of Burlingame does resolve as follows: WHEREAS, many of the City's sewer utility pipelines are 70 to 100 years old and are approaching the end of their useful lives; and WHEREAS, the City's wastewater treatment facility is over 80 years old, and many of the facility's components are reaching the end of their useful lives, and WHEREAS, the City has not implemented a sewer utility rate increase since July 2012; 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 September 7, 2021 study session, staff and Bartle Wells Associates (BWA), a rate consultant firm, presented the City Council with an overview of the sewer utility system, including details of capital needs, finances, and rate adjustments necessary to cover the escalating costs of materials and labor, while maintaining the Capital Improvement Program (CIP) funding; and WHEREAS, rate increases vary for different user classifications; and WHEREAS, based on the revenue requirements to operate and maintain the City's sewer utility system and the wastewater treatment facility, and fund the CIP and associated debt service, the rate increases amount to an overall composite increase of approximately 9.0% annually in 2022, in 2023, and in 2024; 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 operations and maintenance expenses of the sewer utility system and wastewater treatment facility, debt service, and high -priority capital improvements; and WHEREAS, at the October 4, 2021 Council meeting, the City Council adopted an ordinance amending Chapter 15.08 of the Burlingame Municipal Code, which allows implementation of sewer rates by resolution; and WHEREAS, in compliance with the requirements of Proposition 218, public hearing notices were mailed to the rate payers on September 30, 2021 sufficiently in advance of the 45- day notification requirement prior to the public hearing; and WHEREAS, sewer utility charges include two components as follows: DocuSign Envelope ID: 5FF9FE9D-8E6C-4AEE-89BA-F8A24CBD82DE • Bi-Monthly Base or Minimum Charges: These are fixed charges that are billed independently of winter water usage as shown in the table below. This is the minimum charge a customer will have to pay towards the sewer service charges. Volumetric Rates: Charges for single family residences and duplexes throughout the service area will be billed based on a 3-year average of metered water usage between January and April as measured in units of 1,000 gallons. All other customers will pay based on the volumetric rates of 1,000 gallons of metered water use, as presented in the table below. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, and ORDERED BY THE COUNCIL AS FOLLOWS: In accordance with the direction of the City Council on September 7, 2021 and pursuant to the Proposition 218 Notice of Public Hearing, sewer utility charges be implemented as follows. ProposedRatesCurrent Propose Sewe r Rate s Eff e ctive onor + January IT January I January 2024Sewer I Single Family Residences & Duplexes Volumetric rates p er 3, OOD gallons billed based on a 3-year average of water use from bills between tan nary - April su bject to a minimum bi-mon thly charge_ Single Family/Duplex $12.25 $13.58 $14.91 $16.25 Commercial / Other Customers Volumetric rages per 1,000 gallons of metered wader use, subject to a minimum brmon thly charge - Multi -Unit Residential $11.45 $13.Q5 $14.65 516.25 Light Commercial 13.53 14.44 15.35 16.25 Moderate/Heavy 21.97 23.30 25.63 27.45 Food Related 32.59 34.14 35.69 37.24 Institutional/Schools/Churches 4.80 6.71 8.62 10.52 Minimum Bi-Monthly Charge The minimum charge only applies when volumetric sewer rates rewit in a charge that is kywer than the minimum_ Minimum Bi-Monthly Charge $24.50 $27.16 $29.32 $32.50 Monthly Equivalent 12.25 13.53 14.91 15.25 2. For single family residences and duplexes that have not established historical winter water use data normally used to calculate sewer charges, the following rates would be levied on a temporary basis until one year of winter water use data is available (from 2 bi-monthly bills between January and April). Sewer bills would subsequently be based on the rates shown on the table above. DocuSign Envelope ID: 5FF9FE9D-8E6C-4AEE-89BA-F8A24CBD82DE Bi-Monthly Sewer Rates for New Single Family/Duplex Connections Effective Date: January 01, 2022 January 01, 2023 January 01, 2024 1 Bedroom or Studio $54.32 $59.64 $65.00 2 Bedrooms $81.48 $89.46 $97.50 3 Bedrooms $108.64 $119.28 $130.00 4 Bedrooms $135.80 $149.10 $162.50 5 or More Bedrooms $162.96 $178.92 $195.00 Ricardo Ortiz, Vice -Mayor I, MEAGHAN HASSEL-SHEARER, City Clerk of the City of Burlingame, certify that the foregoing Resolution was introduced at a regular meeting of the City Council held on the 15'" day of November, 2021, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, ORTIZ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: O'BRIEN KEIGHRAN Meaghan Hassel -Shearer, City Clerk