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HomeMy WebLinkAboutAgenda Report - February 15, 1989 (71)-, CITY COUNCIL MEETING FEBRUARY 15, 1989 SECTION 13.08.010 OF THE LCIS MUNICI?AL CODE AMENDED TO REQUIRE THAT WATER RATES BE SET BY ORDINANCE INSTEAD OF RESOLUTION ORD. NO. 1446 INTRODUCED The City Council introduced Ordinance No. 1446 entitled: "An Ordinance of the Lodi City Council Arnen nlg C-� Municipal Code Section 13.08.010 To RequirE Adoption or Rates for Water Service by Ordinance in Lieu of Resolution". CC -,183(e) ' City Attorrey McNatt apprised the City Council that recent State legislation has modified Health and Safety Code Section 5471 which previously required that sewage and solid waste disposal rates be set by ordinance as opposed to resolution. Now included in that section is rate setting for water systems, which now must also be adapted" ')y ordinance. In fact, Lodi Municipal Cade "S'ect'ion: 13.08.010 specifies that water rates shall 1,e adopted or ectablished by "resolution" of the Council. Based on the recent change in State law, it is now necessary that this... portion of the Municipal Code be amended to reflect the change. Therefore Ordinance No. 1446 brings the City into " . compliance with State law by providing that our water rates be set via ordinance rather than resolution. -HGT'..'GOFSAN lSYQ[ 111! ��+W.uYS:T_Taw.msa�SS'�`�.e'zswx+.�v�wsewwnna.-.ws-sawr�rrawnwirw'rau�raac.s.�.sr�rwa-.0 •rnrtsavnaem.4Vp6, 1V/RWN!SiBsaC:vswv+.-aa Continued January 4, '39 AMENDED WATER RATES ADOPTED RES. NO. 89-02 Following a brief introduction of the matter by City Manager Peterson, Assistant City Manager Glenn advised the CC -6 City Council that dating back to the Budget Message in the CC 51(4, 1988-89 Operating Budget document promulgated last ';ay , me ► T' P have been periodically cne need to adjust the Wel City's v atar rate schedule. In fact, this matter has been informally discussed by the City Council and staff for the last two years. A the Council is aware, the water rate schedule for all residential units as well as some commercial and industrial uses is a flat rate, regardless ' of water usage. The current residential rate is $6.00 per month. This rate was established in 1976, and represented s a 50% increase from the then -existing rate of $4.00. The 1976 adjustment also i ncre._ ed all other rates in the schedule by a like percentage amount (50%) , including ` metered commercial and industrial accounts. The last increase prior to that was in 1965 when the rate was increased 100%, from $2.00 to $4.00. z, The present schedule is rife with inequities. The flat rate charge in the residential community is applied equally to the studio apartment, the one -bedroom alley house and � the five -bedroom house with large, landscaped grounds. One. aspect of the current schedule is that theper-apartment unit rate is less if the landlord pays the bill than if the tenant pays. The current schedule also includes a decliningy block rate for metered customers. This conceit translates to "the more you use, the less it costs." This schedule, which does nothing to encourage prudent water usage, is 18 cents per one hundred cubic feet (100 cu/ft) r` of water used for the first 50,000 cubic feet; 15 cents per 100 cu/ft for usage between 50,000 and 250,000 cubic feet; and 12 cents per 100 cu/ft for amounts in excess of 250,000 cubic feet. Further contributing to the list of inequities are the rates charged to unmetered commercial and r industrial accounts. In some instances the rate is based E- on the size of the water service to the property. In others, the front foota&e of the building is the determining factor. In still others, the rate appears to have been the end product of long -ago negotiations, the logic of which is beyond recall. The City i s currentlyproducing and delivering water a t a cost i n some instances higher than is being charged metered customers. In 1987, the City produced 66,742,460 cubic feet of water at a cost of $1,143,695. This computes to a cost of 17 cents per 100 cubic feet. One hundred cubic feet of water is equal to approximately 750 gallons. With block rates ranging from 18 cents down to 12 cents per 100 cu/ft, i t i s obvious that a comprehensive water rate schedule adjustment is long overdue. 11