HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/19/2002 - SECOND READING OF ORDINANCE NO. 166, 2002, AMENDIN AGENDA ITEM SUMMARY ITEM NUMBER: 36
DATE: November 19, 2002
FORT COLLINS CITY COUNCIL FROM: Michael B. Smith
10 Wendy Williams
SUBJECT :
Second Reading of Ordinance No. 166, 2002, Amending Chapter 26, Article III, Division 4 of the
Code of the City of Fort Collins Relating to User Rates and Charges for Water.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY:
The Water Rate Ordinance is projected to increase annual Water Fund operating revenues by
approximately 6% assuming a 15% projected reduction in consumption. Wastewater Fund
operating revenues are projected to increase by 2%and Storm Drainage Fund operating revenues are
projected to increase 10%.
Water Rates
The water rate structures vary by customer class but are all designed to encourage conservation. The
customer impacts vary within each customer category based on relative levels of water usage. In
general,customers with low use will see modest increases(or in some cases reductions)in their total
water bills while the larger users in each customer class will experience a bigger percentage increase.
Customer conservation efforts will help to moderate the rate impacts at all levels of use.
Ordinance No. 166,2002,which was adopted 6-1 on First Reading on November 5,2002,was based
on the direction received from City Council at the September 10 and October 22, 2002, study
sessions. The water rates are designed based on the assumption that 2003 water use will decrease
15% system wide for all customer classes. This Ordinance provides for increasing step rates for
single-family and duplex customers and seasonal rates for multi-family and commercial customers.
The construction rate and miscellaneous fees and charges for hydrant water rental and service
charges have also been updated to reflect current costs. All changes will become effective on
billings issued for meter readings on or after January 1, 2003, and on billings issued on or after
January 1,2003,for unmetered services. The Ordinance also eliminates an existing Code provision
regarding an agreed upon charge for past meter installation work that Colorado State University pays
to the City as a contractual matter due to the fact that the charge is a matter of contract.
ORDINANCE NO. 166, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE III, DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO USER RATES AND CHARGES FOR WATER
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, Colorado, to fix, establish, maintain and provide for the
collection of such rates, fees, or charges for water utility services furnished by the City as will
produce revenues sufficient to pay the costs, expenses and other obligations of the water utility, as
set forth therein; and
WHEREAS, Section 26-118 of the Code of the City of Fort Collins requires that the City
Manager analyze the operating and financial records of the water utility during each calendar year
and recommend to the City Council user rates or adjustments to be in effect for the following year;
and
WHEREAS, Section 26-118 further provides that user rates may include a conservation
gallonage charge or other rate component that creates an economic incentive to conserve water; and
WHEREAS, pursuant to Section 26-118 of the Code of the City of Fort Collins the City
Manager has submitted a recommendation to the City Council regarding the water user rates to be
imposed for the billing year beginning January 1, 2003.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Subsection (b)(2) of Section 26-118 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Sec. 26.118. Determination of user rates.
(b) . .
(2) Metered water use. Charges for metered water service consist of a
monthly base charge, which varies with the number of dwelling units for
residential customers and the size of the meter for nonresidential
customers, and a quantity charged per thousand gallons of water use. The
quantity charge may vary by customer class and may increase based on
monthly usage or on a seasonal basis. For those customers served by
more than one meter, the appropriate base charge shall be applied to each
meter. Monthly base charges shall be billed to each meter in use
regardless of whether any quantity charge is made.
Section 2. That Section 26-126 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-126. Schedule A, flat rates for unmetered water use.
(a) Residential rate. When the use of city water is not metered, the monthly
rate to be charged for each flat rate water service shall be the sum of the total charge
for the dwelling units (A) plus the lot charge (B):
A = For a building containing only one (1) dwelling unit: Twenty-seven
dollars and ninety-one cents ($27.91); for a building containing only two
(2) dwelling units: Thirty-nine dollars and fifty-one cents ($39.51).
B = For each lot: Add to the dwelling unit charge seventeen and six-tenths
cents($0.176)per one hundred(100)square feet of lot area if the building
includes one (1) dwelling unit. If the building includes two (2) dwelling
units,add to the dwelling unit charge fifteen and six-tenths cents($0.156)
per one hundred (100) square feet of lot area.
(b) Construction Rate. For residential and nonresidential premises under
construction,there shall be a one time charge equal to one and one-half(I-1/2) times
the monthly base charge as specified for the applicable residential or nonresidential
account in § 26-127.
Section 3. That Subsections(a)and(b)of Section 26-127 of the Code of the City of Fort
Collins are repealed in their entirety and reenacted to read as follows:
Sec. 26-127. Schedule B, meter rates.
(a) Residential Rates.
(1) Residential customers with one (1)dwelling unit.
a. Base Charge. Residential customers with one dwelling unit shall pay
a base monthly charge of twelve dollars ($12.).
b. Quantity Charge. Residential customers with one (1) dwelling unit
shall pay a monthly quantity charge as follows:
For the first seven thousand(7,000)gallons used per month,a charge
of one dollar and sixty-eight cents ($1.68) per one thousand ( 1,000)
gallons.
For the next six thousand(6,000)gallons used per month,a charge of
two dollars and twenty-four cents ($2.24) per one thousand (1,000)
gallons.
For the next seven thousand(7,000)gallons used per month,a charge
of two dollars and eighty cents ($2.80) per one thousand (1,000)
gallons
For the next thirteen thousand (13,000) gallons used per month, a
charge of three dollars and thirty-six cents ($3.36) per one thousand
(1,000) gallons
For all additional gallons used per month,a charge of four dollars and
twenty cents ($4.20) per one thousand (1,000) gallons.
(2) Residential customers with two (2)dwelling units.
a. Base Charge. Residential customers with two (2) dwelling units
shall pay a base monthly charge of fourteen dollars and sixty-three
cents ($14.63).
b. Quantity Charge. Residential customers with two (2) dwelling units
shall pay a monthly quantity charge as follows:
For the first nine thousand (9,000) gallons used per month, a charge
of one dollar and sixty-eight cents ($1.68) per one thousand (1,000)
gallons.
For the next four thousand (4,000) gallons used per month, a charge
of two dollars and twenty-four cents($2.24)per one thousand(1,000)
gallons.
For the next seven thousand (7,000) gallons used per month, a charge of
two dollars and eighty cents ($2.80) per one thousand (1,000) gallons
For the next thirteen thousand(13,000) gallons used per month, a charge
of three dollars and thirty-six cents ($3.36) per one thousand (1,000)
gallons
For all additional gallons used per month, a charge of four dollars and
twenty cents ($4.20) per one thousand (1,000) gallons.
(3) Residential customers with more than two (2) dwelling units.
a. Base Charge. Residential customers with more than two(2)dwelling
units shall pay a base monthly charge of twelve dollars ($12.)for the
first dwelling unit and four dollars ($4.) for the second and each
additional dwelling unit.
b. Quantity Charge. Residential customers with more than two dwelling
units shall pay a monthly quantity charge of one dollar and seventy-
four and two-tenths cents ($1.742) per one thousand (1,000) gallons
used in the winter season months of November through April. They
shall pay a monthly quantity charge of two dollars and seventeen and
eight-tenths cents ($2.178) per one thousand (1,000) gallons used in
the summer season months of May through October. The meter
reading date shall generally determine the seasonal monthly quantity
charge;however,no customer shall be billed more than six full billing
cycles at the summer quantity charge.
(b) Nonresidential Rates.
(1) Base Charge. Nonresidential customers shall pay a base monthly
charge based on meter size as follows:
Meter Size(inches) Monthly Base Char e
3/4 $10.64
1 29.69
1-1/2 80.73
2 121.66
3 185.56
4 291.31
6 565.11
8 1 998.32
(2) Quantity Charges. Nonresidential customers shall pay a monthly
quantity charge of one dollar and forty-eight cents ($1.48) per one
thousand(1,000)gallons used in the winter season months of November
through April. They shall pay a monthly quantity charge of one dollar
and eighty-five cents ($1.85) per one thousand (1,000) gallons used in
the summer season months of May through October. The meter reading
date shall generally determine the seasonal monthly quantity charge,
however, no customer shall be billed more than six full billing cycles at
the summer quantity charge.
(3) Charges for Excess Use. Monthly water use in excess of the amounts
specified in the following table shall be billed at two dollars and twelve
and seven-tenths cents ($2.127) per one thousand (1,000) gallons used
in the winter season months of November through April. Monthly water
use in excess of the amounts specified below shall be billed at two
dollars and sixty-five and nine-tenths cents ($2.659) per one thousand
(1,000) gallons used in the summer season months of May through
October. The meter reading date shall generally determine the seasonal
billing excess quantity charge, however, no customer shall be billed
more than six full billing cycles at the summer excess quantity charge.
Meter Size(inches) Specified Amount
(gallons per month)
3/4 100,000
1 300,000
1-1/2 625,000
2 1,200,000
3 1,400,000
4 2,500,000
Section 4. That Subsection(c)of Section 26-127 of the Code of the City of Fort Collins
is hereby deleted.
Section 5. That Subsections(a)and (b)of Section 26-129 of the Code of the City of Fort
Collins are hereby amended to read as follows:
See. 26-129. Schedule D, miscellaneous fees and charges.
(a) Service charges shall be as follows:
(1) For processing a request for water service
during normal business hours $20.00
(2) All after hours service calls $46.00
(b) The fire hydrant fees and charges shall be as follows:
(1) For installation of meter $43.00
(2) For removal of meter 43.00
(3) For daily rental for meter and fittings 8.60
(4) For water service,
rate per one thousand (1,000)
gallons water used 5.02
(5) A deposit may be required in the amount of the charges for
the anticipated water usage and rental.
Section 6. That the amendments to Chapter 26 of the City Code contained in Section 3
herein shall go into effect with respect to all city utility bills issued for meter readings taken on or
after January 1, 2003.
Section 7. That the amendments to Chapter 26 of the City Code contained in Sections
1,2 and 5 herein shall go into effect with respect to all city utility bills issued on or after January 1,
2003.
Section 8. That the City Manager shall periodically review the water rates imposed by
this ordinance and assess their effectiveness in reducing water consumption by all classes of water
uses, and shall submit to the Council, no less than annually, any recommended rate changes that he
believes may enable the City to better meet its water conservation goals.
Introduced and considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2002, and to be presented for final passage on the 19 day of November, A.D.
2002.
Mayor
A EST:
)4
City Clerk
Passed and adopted on final reading this 19th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
AGENDA ITEM SUMMARY ITEM NUMBER: 33 A-C
DATE:
FORT COLLINS CITY COUNCIL NI it Michael B. Smith
STAFF: Wendy Williams
SUBJECT:
Items Relating to Utility Rates for 2003.
RECOMMENDATION:
Staff recommends adoption o he Ordi(e)s
adi
FINANCIAL IMPACT:
The Water Rate Ordinance is projected to increase annual Water Fund operating revenues by
approximately 6% assuming a 15% projected reduction in consumption. Wastewater Fund
operating revenues are project o in a by a yraie Fund operating revenues are
projected to increase l0%.
EXECUTIVE SUMMARY:
A. First Reading of Ordinanc o. 166 002, Amendin Cha ter 26,Article III, Division 4 of
the Code of the City o ort 1 ' s Re iPto a at and Charges for Water.
B. First Reading of Ordin e N 2 ng apter 26 Article VII,Division 4 of
the Code of the City Relating to Wastewater Fees.
C. First Reading of Ordinance No. 168, 2002, Amending Chapter 26, Article VII, Division 2
of the City Code Relating to Stormwater Fees.
Water Rates
The proposed water rate structures vary by customer class but are all designed to encourage
conservation. The customer impacts vary within each customer category based on relative levels of
water usage. In general, customers with low use will see modest increases (or in some cases
reductions) in their total water bills while the larger users in each customer class will experience a
bigger percentage increase. Customer conservation efforts will help to moderate the rate impacts
at all levels of use.
Ordinance No. 166,2002, is based on the direction received from City Council at the September 10
and October 22, 2002, study sessions. The water rates are designed based on the assumption that
DATE: November 5, 2002 2 ITEM NUMBER: 33 A-C
2003 water use will decrease 15%system wide for all customer classes. If consumption drops to the
projected level, the proposed rates will provide a 6% increase in Water Fund revenues. The
Ordinance provides for increasing step rates for single-family and duplex customers and seasonal
rates for multi-family and commercial customers.
It is difficult to predict customers'response to the Utilities'conservation campaign that combines the
new rates, education and water restrictions. If reduction in usage is less than the 15% target
revenues will increase more than the 6% required. If reduction is more than 15%, there will be a
shortfall of revenues in the Water Fund. In either case, mid-year rate.changes may be necessary in
2003.
The construction rate and mis ous an r rant water rental and service
charges have also been update o refl rren s p o d changes will become effective
on billings issued for meter r ings on afte 1, 20 , and on billings issued on or after
January 1,2003,for unmetered i e also nates an existing Code provision
regarding an agreed upon charge for past meter installation work that Colorado State University pays
to the City as a contractual matter due to the fact that the charge is a matter of contract.
Wastewater Rates
As proposed in the 2002-2003 budget, Ordinance No. 167, 2002, increases the City's wastewater
rates by 2%.The increase is needed to fund the operations and maintenance of the City's wastewater
system and to finance capital im e b ' "a s the board"for all customers.
A typical single-family reside al cus o er's t y b w rease From$16.29 to$16.61 (32
cents per month). This is bas on a sy m av g 56 gal ns per month winter quarter water
consumption. This Ordinance op a sekee changes to standardize verbiage
regarding base monthly charges and to delete references to obsolete "Category I" customers. The
proposed changes will become effective on billings issued on or after January 1,2003, if said billings
are calculated based on flat rates or winter quarter water use. The proposed changes will become
effective on billings issued for meter readings on or after January I, 2003, if said billings are
calculated based on metered water use or measured sewage flow. The Water Board recommended
approval of the 2002-2003 wastewater rate plan during its review of the 2002-2003 budget in the fall
of 2001.
Stormwater Rates
If adopted by City Council,the sto r will i e 10% "across the board" for all
customers. The 10%increase is consistent with both the 2002-2003 budget and the 2001 Stormwater
Financing Plan adopted by City Council Resolution 2001-93. The increase is necessary to fund the
operations and maintenance of the City's stormwater system, to pay debt service and to accelerate,
the citywide capital improvements program. A typical single-family residential customer's monthly
bill will increase from $11.79 to $12.96 ($1.17 per month). The typical bill is based on an 8600
square foot lot with light run off. The proposed increase is to be effective on billings issued on or
after January 1, 2003. The Water Board approved the 2002-2003 stormwater rate plan during its
review of the 2002-2003 budget in the fall of 2001.
Electric Rates
No changes are proposed to the electric rates for 2003.
DATE: November 5, 2002 3 ITEM NUMBER: 33 A-C
Impact on Average Residential Customer
The table below summarizes the impact of the proposed rate adjustments on a typical single-family
residential customer's monthly utility bill. The table shows rate impacts on median customers who
both meet and fail to meet the targeted 15% reduction in water use. In contrast to the 2% and 10%
across the board increases for all wastewater and stormwater customers, water customers who use
more water than the median customer specified in this table will experience a larger percentage
increase than the median. Likewise, water customers who use less water than the median customer
will experience a smaller percentage increase(or in some cases even a reduction)in their water bills.
Typical Residential Customer 2002 "�'No n' �s� 15% Reduction in Water Use
Rates ..;_ r
r'r CFI's
`Props � + '� +$ ` -�' + F , Proposed $ %
+aid 2003 Increase Increase
i&
Water
(50th percentile I t7,131 gal/yr) $ $29.23 $0.10' 0.3%
Wastewater
(5456 gal./mo.WQQ $16 29 „� :z � ° '. $16.61 $0.32 2.0%
Electric i i:a '< ;" v s
(700 kWh per month) $43.34 $43 34 1 �� ,$0 od— $43.34 $0.00 0.017
Stormwater
(8,600 sq. ft.lot,light runoff) U4.496 $12.96 11.17 10.0% $12.96 $I.17 1 10.09c
Total Monthly Utility Bill Arl00.55 l $10G20 : ! '$5.65 . Sr,6%a $102.14 $1,591 1.589c
Note: Water,Wastewater and Elec calculati s inclu 6 payment in eu of taxes.
BACKGROUND- Water Rates
Single-family Residential Customers
A five-step increasing block rate is proposed for the single-family residential customers. It is
projected that the increasing block rate will encourage conservation by sending a strong price signal
to the customer to reduce water use. The proposed rate lowers the fixed monthly charge and
increases the variable volumCre .
yexnced
is from the fixed fees to the
increasing volume charges, a im t ill in the summer months and
customers will see little incre term Thetable summarizes the changes
and the projected impacts on
DATE: November 5, 2002 4 ITEM NUMBER: 33 A-C
Single-family Gallons per Month Mo. Charge* % Increase above
Step 1
Current Rate
Fixed Charge per Month $14.69
Charge per 1000 Gallons (all gal. used) $1.31
Proposed Rate
Fixed Charge per Month $12.00
Step Charge per 1000 Gallons:
1 0-7,000 $1.68
2 7,0 - 000 2 33%
3 001-2 , .8 67%
4 ,001-33, 0 3.36 Y 100%
5 A ,0 $4.20 150%
* 6%Payment in lieu of taxes is added to the water rates per City Code 26-118 (c).
6% Increased revenue with 15% reduction.
26.8 % Increased revenue with no reduction.
The annual impacts on single-family residential customers vary based on water use and are
summarized in the table below. The table shows rate impacts for customers at the 25th, 50th and
75th percentile of use for Gust rs ee Y
the targeted 15% reduction in
water use. For computation p oses it assu a of 15% is obtained during the
Or
six summer watering months 'pings f M t ugh
No Change' Use 15% Reduction in Use
Single Annual Annual " allons Annual $ %
Family Gallons Cost jj; th 15% Cost Change Change
Customer 2002IlReduction Proposed
(Percentile) Waterin Use 2003
Rat Rate
25th 70,952 $285 860,309 $263.50 ($21.88) -7.7%
50'h 117,131 $349.52 99,561 $350.74 $1.22 0.3%
75`h 172,294 $426.09 MO146,441 $473.45 $47.36 11.1%
Note: Calculations include 6% payment in lieu of taxes.
DATE: November 5, 2002 5 ITEM NUMBER: 33 A-C
Duplex Customers
The duplex rate has five steps. The charges for each step are the same as for the proposed single-
family residential rate with the exception that the first step is for all gallons used between zero and
9,000 gallons. This level of usage represents the same proportion of customer billings in the duplex
rate class as zero to 7,000 gallons is for the single-family residential class.
Duplex Gallons per Month Mo. Charge* % Increase
above Step 1
Current Rate
Fixed Charge per Month $17.32
Charge per 1000 Gallons(all gal. used) $1.31
Proposed Rate
Fixed Charge per Month $14.
Step Charge per 1000 Gallons:
1 0-9,000 $1.68
2 9,001-13,000 $2.24 33%
3 13,001-20,000 $2.80 67%
4 20,001-33,000 $3.36 100%
5 Above 33,000 $4.20 150%
* 6% Payment in lieu of Jp9"add9d1WheVntiLrW pepCity Code 26-118 (c).
5.6 % Increased revenu ith 194educAnk
26.9 % Increased reven with no duc
Flat Rate Customers
The flat rate for residential customers (single-family and duplex) will be increased 6%. There are
approximately 2000 residential flat rate customers remaining on the system and it is anticipated that
the vast majority of these will be converted to meters before the 2003 lawn watering season.
Multi-Family Residential Customers
A seasonal rate is proposedC
i- u m e oposed rate reduces the fixed
monthly charge and increase char 0 g ns. The volume charge will vary
by season, increasing 25% in wat n onths, y through October. The proposed
multi-family rate follows:
Multi Family Current 2002 Rate* Proposed 2003 Rate*
Base Charge per account $14.69 $12.00
Base Charge per additional dwelling unit $ 5.06 $ 4.00
Winter Charge per 1000 gallons (Nov.-Apr.) $1.310 $1.742
Summer Charge per 1000 gallons (May-Oct) $1.310 $ 2.178
* 6% Payment in lieu of taxes is added to the water rates per City Code 26-118 (c).
6.0 % Increased revenue with 15% reduction.
18.2 % Increased revenue with no reduction.
The irrigation patterns of multi-family customers vary because some premises have separate
commercial irrigation taps while others customers irrigate using the building's water service.
With the seasonal rate structure, customers with a summer irrigation component will experience
the larger increases in their total water costs since a larger percentage of their use will be at the
DATE: November 5, 2002 6 ITEM NUMBER: 33 A-C
higher summer quantity charge. Multi-family customers with flat usage patterns throughout the
year will experience seasonal shifts in their cost per gallon but the overall annual increase will be
less than for customers with heavier summer use. An alternative future way to address the
irrigation component of multi-family use could be to set step thresholds at levels based upon each
individual customer's account history similar to the way winter quarter consumption is used for
wastewater rates. This approach requires additional analysis and is dependent upon
reprogramming the customer information system program to perform this option.
Commercial Customers
The proposed commercial rates are also structured seasonally with a 25% higher quantity cost per
gallon in the six summer months than in the winter. The seasonal rate form was favored by City
Council at the October 22, 20Csedd
0ass
The water rates are designed that c mercial customers will decrease
usage 15%a in 2003. If cons rojecte el, the rates will provide a 6%
increase in Water Fund revenues. If no reduction in use is achieved the rates will generate a
revenue increase of approximately 21%. For all commercial customers, the proposed rate will
provide a 25% greater price incentive to conserve during the summer months of May through
October.
Commercial customers with higher proportional use during the summer months will experience
the largest increases in total co sh e h M IL Ine sees onaI shift in the commercial
class may not all be for out ruse, ay o cl e s al shifts in business activities.
Overall increases will be less r all
com cial t rs who water use does not fluctuate on a
seasonal basis or whose greate d e er mo
The proposed Ordinance retains the conservation step currently in place for commercial
customers with less than six inch meters. The conservation quantity charge applies to all gallons
used per month in excess of a threshold amount. The threshold amount is set at approximately
five times the average use for each meter size. The quantity charge for the conservation step is
43.7% higher than the seasonal quantity charges for water use at less than the threshold amount.
This is consistent with current ati i to
As recommended for multi f ily cuss ers, ernative ture way to address the irrigation
component of commercial use be t olds els based upon each individual
customer's account history similar to the way winter quarter consumption is used for wastewater
rates. This approach requires significant further analysis and depends upon reprogramming the
customer information system program to perform this option.
The following table displays the proposed seasonal commercial rate changes by meter size. The
change in each subclass' fixed base charge is unique to that meter size based on guidelines from
the last cost-of-service study. Although the thresholds for each step are unique by meter size,
the cost per gallon for each step is consistent across the meter sizes.
DATE: November 5, 2002 7 ITEM NUMBER: 33 A-C
Proposed 2003 Rate
2002 Rate Monthly Charge*
Commercial Water Rate by Gallons Per Monthly Winter Summer
Meter Size Month Charge* November-A ril May-October
3/4" Meter !
Base Charge per Account $12.97 $10.64 $10.64
Charge per 1000 Gallons 0-100,000 $1.310 $1.480 11 $1.850
Charge per 1000 Gallons >100,000 $1.883 $2.127 $2.659
3.0% Increase with 15% reduction
17.1% Increase with no reduction
1"Meter
Base Charge per Account 1 29.69 $29.69
Chaz e per 1000 Gallons 00,0 $1.310 $1.480 $1.850
Charge per 1000 Gallons >3 , 0 1.883 2.127 $2.659
3.3% Increase with 15% reduction
19.5% Increase with no reduction
1.1/2" Meter
Base Charge per Account $80.54 $80.73 $80.73
Charge per 1000 Gallons 0-65 00 1.3 480 $1.850
Charge per 1000 Gallons 0,0 _ $llW3X X2.127 $2.659
8.5% Increase with 15010 red tion
24.6% Increase with no redu
2" Meter
Base Charge per Account $143.04 $121.66 $121.66
Charge per 1000 Gallons 0- $1.310 $1.480 $1.850
1,200,000
Charge per 1000 Gallons >1,200,000 $1.883 $2.127 $2.659
3.0% Increase with 15% redu '
18.1% Increase with no red on
3"Meter
Base Charge per Account $181.78 $185.56 $185.56
Charge per 1000 Gallons 0- $1.310 $1.480 $1.850
1,400,000
Charge per 1000 Gallons >1,400,000 $1.883 $2.127 $2.659
9.9% Increase with 15% reduction
27.1% Increase with no reduction
4" Meter
Base Charge per Account $304.87 $291.31 $291.31
Charge per 1000 Gallons 0- $1.310 $1.480 $1.850
2,500,000
Charge per 1000 Gallons >2,500,000 $1.883 1 $2.127 $2.659
7.9% Increase with 15% reduction
23.4% Increase with no reduction
DATE: November 5, 2002 8 ITEM NUMBER: 33 A-C
Proposed 2003 Rate
2002 Rate Monthly Charge*
Commercial Water Rate by Gallons Per Monthly Winter Summer
Meter Size Month Charge* November-April Ma -October
6"Meter
Base Charge per Account $809.95 $565.11 $565.11
Charge per 1000 Gallons All gallons $1.310 $1.480 $1.850
8.9% Increase with 15% reduction
23.4% Increase with no reduction
8"Meter
Base Charge per Account 8.32 $998.32
i Charge per 1000 Gallons '4rgallct $1,110VA$1.480 $1.850
7.5% Increase with 15% red21k ion
20.9% Increase with no reductt
Total Revenue for Commercial Class
6.0% Increase with 15% reduction
21.4% Increase with no reduction
* 6% Payment in lieu of taxes is added to the water rates per City Code 26-1 18 (c).
Board Recommendations
The Water Board and ,ions
esourc Advi y rev ed the water rate proposals prior
to changes made after the Sep her d o 22 stud essions. The rate design that was
reviewed by the Boards targeted a 0% re uction m use. Bot oards endorsed implementation
of water conservation rates. Neither Board has reviewed the proposals now before Council that
include higher targeted reductions and seasonal rates for the multi-family and commercial
customer classes.
As reflected in the attached minutes, Water Board members had concerns that the "drought" rate
structures should not be permane a d th ates should be reviewed annually in order to adjust
the rates for normal conditio nce rou yeaTh,,
. The motion adopted by the
Board included these conce s. The oJP.
Water Board recommends
approval of the proposed wat con is be evaluated on an annual
basis, and when the extreme con itions are over, the steps in the rate structure be adjusted to
reflect that."
The Natural Resources Advisory Board expressed concerns about the 10% targeted reduction and
the original non-tiered commercial rate proposal that was presented.
Copies of the minutes from the Water Board and a letter from the NRAB are attached.