File #: PH 19-064   
Section: Public Hearing Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 7/2/2019 Final action:
Subject: Adopt a Resolution Amending the Master Fee Schedule and Approving the Proposed Recycled Water Rates and Connection Fees
Attachments: 1. Attachment I Staff Report, 2. Attachment II Resolution, 3. Attachment III Recycled Water Rate Comparison, 4. Attachment IV Prop 218 Notice FY20 and FY21 Rates
DATE: July 2, 2019

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT

Title
Adopt a Resolution Amending the Master Fee Schedule and Approving the Proposed Recycled Water Rates and Connection Fees

End
RECOMMENDATION
Recommendation

That Council adopts a resolution (Attachment II) amending the Master Fee Schedule and approving the proposed recycled water rates and connection fees.
End

SUMMARY

Staff has prepared a cost of service analysis for providing recycled water service to calculate appropriate rates and charges for FY 2020 and FY 2021. The recommended recycled water rate structure would include a uniform volume charge of $5.16 per hundred cubic feet (CCF), which pays for the costs associated with recycled water production and deliveries, and a fixed bimonthly water service fee for recycled water, which is proposed to be the same rate as the water service fee for potable water. The recommended recycled water commodity rate at $5.16 per CCF is 25.8% lower than the current potable water rate at $6.95 per CCF for the first 200 CCF of usage. Staff is proposing the same commodity rate for FY 2020 and FY 2021.

Proposition 218 Compliance: Staff implemented notification requirements of Proposition 218 for this proposed rate, which mandates that written notice of proposed service rates be mailed to all affected property owners. While not legally required, notices were also mailed to bill payers of record. The notice, a copy of which is attached (Attachment VI), lists the proposed rates, and described the process for protesting the proposed rates. A total of 64 notices were mailed out.

The language in Proposition 218 specified that the Council may not take action on the proposed rates if a majority of property owners, or more than 15 owners, submit written protests. The City Clerk will tabulate the final number of protests at the end of the public hearing and certify the results. As of June 26, 20...

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