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HomeMy WebLinkAbout43-Water Department '~IT~ OF SAN BERr6d:tDINO ~EQUEST .QR COUNCIL ACTION ... FrCMn: Bernard C. Kersey, Deupty City Clerk Ex-Officio Secretary ~: Board of Water Commissioners Subj~: Approved increase in Acquisition of Service Charge for all new water service, set forth in Rule & Regulation No. 20, (Subsection H:of the Board, of Water Commissioners.) Date: October 4, 1989 Synopsis of Previous Council action: None Recommended motion: Adopt Resolution Contact person: B~r""'rd r~r~"y Phone: 1Rh.-C\1Q1 Supporting data attached: Yes Ward: All FUNDING REOUIREMENTS: Amount: ~ I A Source: (Acct. No.) (Acct. DescriDtion) Finance: Council Notes: 75-0262 Agenda Item No l/-.3 , ' · CITY OF SAN BER~DINO - REQUEST ~R COUNCIL ACTION STAFF REPORT The Board of Water Commissioners has adopted Resolution No. 403 increasing the acquisition of service charges applicable to all new water service applications. The Water Department has an established acquisition of service charge of $707 for a 5/8" x 3/4" meter serving a single dwelling unit. Multiple dwelling units are charged one-half of the base charge for each unit. Charges for other classes of service are established based upon meter size. Revenue from this charge is used to pay the cost of serving new development. Analyses have been performed which indicate that this charge is not sufficient to cover the incremental addi- tional charge of providing for expansion to serve new growth. Required capital improvements to meet future demand were derived from the 1981 Water System Master Plan Report, a staff report of "Capital Projects that are needed to meet our 1990/91 Peak Demand", and inclusion of the West End Water Treatment Plant, Highline Feeder and Baseline Feeder Projects. A total capital improvement projects costs was determined based on 1989 dollars. The total cost of all projects is $26.22 million dollars (A copy of the schedule is attached). The projects were then allocated as to projects necessary for existing customers and projects necessary to expand the water system to meet new demand. Some projects are funded on a cash bases while the very large projects are financed. An analysis was then conducted to determine historical rates of growth and anticipated growth rates for the next five years. This anaylsis shows that we have added approximately 1,000 equivalent residential units per year to the water system since 1980. The results of the analysis indicate that the acquisition of service charge should be established at $1400 for 5/8" x 3/4" meter serving a single dwelling unit. The charge for larger meters is then established based upon a capacity factor for each meter size in relationship to the capacity factor of the 5/8" x 3/4" meter size. The acquisition of service charge may be adjusted in the spring of 1990 when the Water Department concludes an update of the Water System Master Plan which began October 1, 1989. This update is required to be completed within one year of the adoption of the City's General Plan. A survey of surrounding area water agencies was conducted to determine what level they have set the charges for new development. A copy of the survey information is attached. The survey results indicated that the increase charge approved by the Board is mid-range and in line with surrounding water agencies. The Board of Water Commissioners conducted a public hearing to receive comments on the proposed increase in the acquisition of service charge on October 3, 1989 and no comments or protests were received. 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'. .. , '-" - .. 1 2 3 4 RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING 5 INCREASES TO ACQUISITION OF SERVICE CHARGES ESTABLISHED BY THE BOARD OF WATER COMMISSIONERS, AS SET FORTH IN RULE AND 6 REGULATION NO. 20, SECTION (H) OF THE BOARD OF WATER COMMISSIONERS OF THE CITY OF SAN BERNARDINO. 7 8 WHEREAS, Article IX, Section 163 of the City Charter, in 9 part, empowers the Board of Water Commissioners to establish all 10 water rates, collect all rentals from water bearing lands and 11 generally regulate, control, manage, renew, repair and extend 12 the entire water system of the City; and 13 WHEREAS, Acquisition of Service Charges for all new water 14 service applications are set forth in the rules and regulations 15 of the Board of Water Commissioners; and 16 WHEREAS, the current charges set forth in Rule and 17 Regulation No. 20 (Subsection h) for Acquisition of Service 18 Charges, are not sufficient to cover the costs to finance source 19 of supply, storage, transmission, treatment, conservation and 20 distribution facilities of the water system; and 21 . WHEREAS, studies have been conducted and an increase in the 22 Acquisition of Service Charge has been prepared, and a Public 23 Hearing was held by the Board of Water Commissioners to receive 24 comments from the public on proposed rates on October 3, 1989, 25 and no comments or protests were received; and 26 WHEREAS, the Board of Water Commissioners adopted Resolu- 27 tion No. 403 on October 3, 1989 approving amendments to Rule 28 and Regulation No. 20 (Subsection h), increasing the Acquisition 10-3-89 II ~. "" ~ "-' RESOLUTION APPROVING INCREASES TO ACQUISITION OF SERVICE CHARGE 1 of Service Charge, to become effective ___~~~~E~E_~___________ , 2 1989. 3 WHEREAS, Acquisition of Service Charges established by the 4 Board of Water Commissioners, pursuant to Charter Section 163, 5 may be approved by resolution of the Mayor and Common Council 6 pursuant to Chapter 2.28, Subsection 4 of the Municipal Code. 7 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 8 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 ~~~~lQN_QN~~ That the City of San Bernardino hereby 10 approves increases in rates for Acquisition of Service Charges 11 for all new water service applications by RESOLUTION NO. _49]_ 12 of the Board of Water Commissioners, a copy of which is attached 13 hereto, marked "Exhibit In, and is hereby referred to and made a 14 part hereof as fully as though set forth at length herein. 15 ~E~X1QN_XWQ~ That the rates approved herein shall become 16 effective Novpmh~~_________ , 1989. 17 18 adopted 19 that the foregoing resolution I HEREBY CERTIFY was duly by the and Common Council of the Mayor City of San Bernardino at a ____________________ meeting thereof held on the 20 _______day of __________________, 1989 by the following vote to 21 wit: 22 23 24 25 26 27 28 AYES: Council Members: _________________________________ NAYS: ABSENT:__________________________________________________ 10-3-89 SHAUNA CLARK, CITY CLERK -2- RESOLUTIONS <:;ROVING INCREASES TO ACQUISITIOI~ SERVICE CHARGE . 1 2 day of ---________, 1989. The foregoing Resolution is hereby approved this ________ 3 4 5 6 7 8 APPROVED AS TO FORM AND LEGAL CONTENT: 9 ,1 ~ 10 . /M 1, ....~ --- ------------- 11 ty Attorney 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10-3-89 ---------------------------------- W.R. HOLCOMB, MAYOR -3- ~ ,"""" '-" ......., 1 2 3 RESOLUTION NO. 403 4 A RESOLUTION OF THE BOARD OF WATER COMMISSIONERS, CITY OF SAN 5 BERNARDINO, AMENDING RULE AND REGULATION NO. 20, SECTION (H), INCREASING THE ACQUISITION OF SERVICE CHARGE FOR ALL DEVELOPMENTS 6 WITHIN THE SERVICE AREA OF THE SAN BERNARDINO MUNICIPAL WATER DEPARTMENT. 7 8 WHEREAS, Article IX, Section 163 of the City Charter, in part, 9 empowers the Board of Water Commissioners to establish all water 10 rates; and 11 WHEREAS, Acquisition of Service Charges are set forth in the 12 rules and regulations of said Board of Water Commissioners, and it 13 is the duty of the Mayor and Common Council to pass ordinances as 14 may be necessary to enforce said rules; and 15 WHEREAS, the current rates set forth in Rule and Regulation 16 No. 20 (Subsection h) for Acquisition of Services Charge are not 17 sufficient to cover the costs to expand, improve and upgrade the 18 water system; and 19 WHEREAS, a proposed Acquisition of Service Charge increase has 20 been prepared and a Pub1 ic Hearing was held to receive comments 21 from the public on the proposed increases on October 3, 1989, and 22 no comments or protests were received; and 23 WHEREAS, studies were conducted of the impacts of contemplated 24 future development on the Water Department's existing services and 25 facilities in the entire service area, along with an analysis of 26 new, improved or expanded public facilities and improvements 27 required or appropriate to serve new development, and said study 28 set forth the relationship between new development, those services Exhibit 1 h. m l:iI c /...~ ......... .. 1 or facilities, and the estimated costs of those improvements. The 2 studies are entitled the "Water System Master Plan, 1980", 3 "Acquisition of Service Charge Increase Analysis", and "Capital 4 Projects Needed to Meet Our 1990 Peak Summer Period", and 5 WHEREAS, these studies were available for public inspection 6 and review ten (10) days prior to this public hearing and notice 7 was given in compliance with Government Code Section 54992; and 8 WHEREAS, a public hearing, noticed pursuant to and in 9 comp1 iance with Government Code Sections 54944.1 and 6062a, was 10 held at a regularly scheduled meeting of the Board of Water 11 Commissioners; and 12 WHEREAS, the Board of Water Commissioners finds as follows: 13 A.) The purpose of this fee is to finance source of supply, 14 storage, transmission, treatment, conservation and distribution 15 facilities to reduce the impacts upon the capacities and 16 capabilities of existing facilities through increased demand caused 17 by new deve 1 opment , with i n the ent i re se rv i ce area of the San 18 Bernardino Municipal Water Department as it exists in 1989. 19 B.) The acquisition of service charges collected pursuant to 20 this resolution shall be used to finance the pub1 ic faci 1 ities 21 described or identified in Exhibit "B", attached hereto. 22 C.) After considering the study analyses prepared and listed 23 hereinabove, and the testimony received at this public hearing, the 24 Board approved said studies and incorporates such herein, and 25 further finds that the new development in the service area wi 11 26 generate additional needs of sources of supply, reservoirs, 27 transmission and distribution system upgrades and improvements, 28 water treatment facilities and conservation facilities within the -2- c 1 impacted area, as described in the map attached hereto on Exhibit 2 "C", and will contribute to the degradation of water system 3 facilities in that area. 4 D.) It is appropriate or necessary in this described impact 5 area to provide for sources of supply, storage, transmission and 6 distribution systems, water treatment and conservation facilities 7 which have not been constructed or have been constructed, but new 8 development has not contributed its fair share towards these 9 facilities costs and said facilities. 10 E.) The facts and evidence presented establish that there is 11 a reasonable relationship between the need for the described public 12 facilities and the impacts of the types of development described 13 in Section 2 below, for which the corresponding fee is charged, 14 and there is a reasonable relationship between the fees use and the 15 type of development for which the fee is charged, as these 16 reasonable relationships or nexes are in more detail described in 17 the study referenced above. 18 F.) The cost estimates set forth in Exhibit "B" are 19 reasonable cost estimates for constructing these facilities, and 20 the fees expected to be generated by new development wi 11 not 21 exceed the total of these costs. 22 NOW THEREFORE, the Board of Water Commissioners, City of San 23 Bernardino, does hereby resolve as follows: 24 SECTION 1. 25 An ACQu is it i on of Serv ice Charge sha 11 be charged upon a 11 new 26 water service applications and shall be paid prior to any water 27 service connection and shall be in addition to all other charges 28 imposed by the Water Department (Fire Service Excluded). -3- ,#"'*;,.., ....".,\ :"';l ~ 1 SECTION 2. 2 The ACQu is i t i on of Serv ice Charge sha 11 be as set forth in the 3 scheduled attached hereto and marked Exhibit "A". SECTION 3. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The ACQu i sit i on of Serv ice Charge sha 11 be used to pay for the described public facilities to be constructed by the Water Department and for reimbursing the Water Department for the deve 1 opment · s fa i r share of those cap ita 1 improvements already constructed by the Water Department. SECTION 4. Any judicial action or proceeding to attack. review. set aside. void or annul this resolution shall be brought within 120 days. SECTION 5. This resolution shall become effective on November 1 . 1989. I HEREBY CERTIFY that the foregoi ng reso 1 uti on was duly adopted by the Board of Water Commissioners of the City of San Bernardino at a regular meeting thereof held on the 3rd day of October . 1989. by the following vote to wit: AYES: NAYS: ABSENT: CommissionersChandler. Willis. Urata. Bivens. and Garcia None None BERNARD C. KERSEY. Dep & Ex-Officio Secretar y City Clerk (SEAL) -4- c !"~"'''",- ....." EXHIBIT -A- WATER DEPARTMENT RULE AND REGULATION NO. 20 SECTION (h) The acquisition of service charge will apply to all new service applications and is based upon the demand that each service size imposes on the municipal water system. USE/ METER SIZE CAPACITY FACTOR AMOUNT 5/8" x 3/4" 3/4" x 3/4" 1 " 1 1/2" 2" 3" 4" 6" 8" 10" 4.0 6.0 10.0 14.0 35.0 50.0 60.0 $ 1,400 1 , 400 1 , 400 5,650 8,480 14 , 1 30 19,700 45,770 To Be Determi ned To Be Determi ned Multiple Family dwelling units, including Motels and Mobile Home Parks, shall be charged $700.00 per dwell i ng uni t or by meter size, whichever is the greater amount. The acquisition of service charge shall be paid prior to any water service connection, and shall be in addition to all other charges imposed by the Water Department (Fire Service excluded). ,,-.., '~ "-'" EXHIBIT "B" ~ ~ ~' ~ ~ ~ ~ ~ .. i~i~I~II~i~i~~I~ ~~! I ~~NO.NN~~~~O~~~~ ~.O~I: ~~~~~~~~~.~~~.m~ .. - N N.~~~ ~NN~ ~~ !, .. ! ....,... 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