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HomeMy WebLinkAboutResolution - - 2015-036 - 2/26/2015 1 i or fisc v` Fps, RESOLUTION NO. 2015-36 A RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO ADOPTING THE 522"d AMENDMENT TO THE MASTER FEE SCHEDULE RESOLUTION NO. 80-420 TO ADJUST WATER FEES IN THE PUBLIC UTILITIES WATER FEE SECTION ACCORDING TO PROPOSITION 218 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FRESNO: THAT the Master Fee Schedule Resolution No. 80-420 be and is hereby amended to adjust water fees in the Public Utilities Water Fee Section in accordance with Proposition 218 and Resolutions Nos. 2015-35 and 2015-37. The revised pages of the Master Fee Schedule are attached as Exhibit "A" and are hereby incorporated by reference and made a part of this Resolution. Staff shall update the Master Fee Schedule annually to reflect the rates in effect, as adopted in Resolution No. 2015-35. THAT fees shall become effective March 30, 2015, and the Water Affordability Credit for Income will become effective on July 1, 2015. CLERK'S CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF FRESNO )ss. CITY OF FRESNO ) I, YVONNE SPENCE, City Clerk of the City of Fresno, certify that the foregoing Resolution was adopted by the Council of the City of Fresno, California, at a regular meeting thereof, held on the 26th day of February, 2015. AYES : Brand, Brandau, Caprioglio, Olivier, Soria, Baines NOES : Quintero ABSENT : None ABSTAIN: None Mayor Approval: March 3 2015 Mayor Approval/No N/A , 2015 Return: Mayor Veto: N/A , 2015 Council Override Veto; N/A , 2015 YVONNE SPENCE Ci erk APPROVED AS TO FORM CITY AT RNEY'S OFFICE BY manda B. Freeman, Deputy City Attorney Date Adopted : 2/26/2015 Resolution No. 2015-36 Date Approved: 3/03/2015 Effective Date:3/30/2015 �{ o r P4, CITY OF FRESNO MASTER FEE SCHEDULE Al rE`_Lt `y. AMENDMENT SUMMARY DEPARTMENT OF PUBLIC UTILITIES WATER DIVISION WATER FEES Fee Description Current New Justification MFS Page# Page# Water-Service Clea-rges;-F-tat Rate-(siegle-€aunily-entYL) 4 12 FarPfemises the-total Oar-ge-shall-be lha-basimc�"lus-applicable ad itional-e#arges Basic rate(ver month): —FWst-6,000--sgaar-€eet-af-less-44at s+ze 22.87 Delete —Eaeh-addi40nal-WO--sgeaFe feet 0.228 Delete Semon-Citizen{62 year elle } eet r ll the aaditiet�s fisted below: --I-. 5irtle tarn*fesMeeteonly; �2f 1f ie�f�rus�tbe-ir�a r�e-of-sef�iof-s per �--05Gt1{}ant�nr--re5iC!£�tS-nitt5t�}e-sEnit}r Eit+�E�oF --�ependanl&�5ef+ior ci�f�ee-{�c�t-fe-exceed-lhree-os�u$ar�Es se de e)• —4-Bewef+tting-senievcAt zen-must not&y-he-Eit�vhefr4hey-+io longer qalify, Basic-Fate(per-month)-., 4 12 —Fir-st--&GGG-squareleet-ef-teseef-lot-,�ze 20.5 Delete —Eae-hadditional-400—jquafefeet 0.204 Delete —Additionalcharges-will-be added-to-the-€3asierate —#ef the ffeliewif�: --Additi ral liUinc}uffit;s. rx�epfert�ise&�untii-r ett ed3E 41.7 Delete per th —Air-caraditioni"lfe€rigefater-uei#kint-equipped-with-water-saving 41.99 Delete .deyiees) /ton a month —DisGhafgewate + dfy well,�ton pevmonth 5,99 Delete fir—GoAditio"Ireffigeration unit-(inMaHed-and-equipped-with 3;08 Delete wateF Savin devicSS Ston} -moFith All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:33 PM] Page 1 or ;q .4 SYrF" o CITY OF FRESNO n ;' MASTER FEE SCHEDULE � AMENDMENT SUMMARY Water, Metered Service Rate 4 13 Total charge shall be monthly meter service,,: charge plus quantity charge based on usage Water Meter Service-Standby Charge(meter size per month) Domestic 4 13 3/4-inch or smaller x0.03 8.50 1-inch 13.51 11.20 1-1/2-inch 48.89 13.00 2-inch 2-7.09 22.10 3-inch 46.07 33.00 4-inch 63:02 50.00 6-inch 99.01 95.00 8-inch 152-.96 441.00 10-inch 179.83 696.00 12-inch New 914.00 Irrigation ' 4 13 3/4-inch or smaller New 6.70 1-inch New 8.40 1-1/2-inch New 9.50 2-inch New 15.10 3-inch New 21.80 4-inch New 32.00 6-inch New 60.00 8-inch New 273.00 10-inch New 429.00 12-inch New, 564.00 Water Quantity Charge: 4 13 G{{s4ofx�er cher-Tf�a + r}gle Fry-Res All Customer Classes Each 100 Cubic Feet(HCF) 0.745 0.92 1,000 gallons 0.995 1.23 Sing, e-l=amiiy--Residuetial €aGh-x-00-Gubic-Feet-(WGR) 0.a0 Delete 4Tg ilar4s A.81 Delete 'These charges were previously charged at the Domestic service rate. All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:33 PM] Page 2 4ti�Y �F��fi Sy CITY OF FRESNO MASTER FEE SCHEDULE fi,,r�p pcY til. AMENDMENT SUMMARY Water Affordability Credit for Income-Qualified 4 13 Single Family Residential Accounts Only, $/Month New Up to$5.00 Private Fire Protection Charges, $/Month FiF"yd-ran"ri ate-fafoperty-(-per-renth4 Private Hydrants 23.94 28.80 4 14 Fire Service Connections" 4 14 1-inch New 9.90 1-1/2-inch New 9.90 2-inch New 9.90 2-1/2 ad 3-inch New 9.90 4-inch New 9.90 6-inch New 28.80 8-inch New 62.00 10-inch New 111.00 12-inch New 178.00 Fire-Rroteetion-Autofnatic-Sprinker---Service 4 14 -4-inch-diarneter-or�less­4pef-rnontlr) 23.94 Delete doh-diameter--or-larger.(diarneter--in^�peF ei#h) 5-.99 Delete Water Treatment-GhargeF Flouridation 4 14 With 452 Delete Water, Temporary Service 4 16 3-inch meter, turbine 550.00 Deposit Deposits required shall be refunded upon the return of all Text Only 4 16 equipment. Deductions shall be made for water service charges change to due and the cost of repair or replacement of damaged equipment. provide Any additional replacement costs will be billed to the customer. clarification See Water Metered Service Rate section for the quantity and water meter service charges (3-inch Domestic Service). These charges were previously a part of the Fire Protection Automatic Sprinkler Service charges. All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:33 PM] Page 3 CITY OF FRESNO MASTER FEE SCHEDULE AMENDMENT DETAIL WATER SERVICE CHARGES DEPARTMENT OF PUBLIC UTILITIES/WATER DIVISION Introduction The Water Division (Division) contracted with Municipal Financial Services in August 2014 to conduct a comprehensive water rate study. The broad objective of the study was to review the revenue requirements of the City of Fresno's Water Enterprise for FY 2015 through FY 2019 and develop rates (water service charges) using cost-of-service methods. The draft of the Water Utility Financial Plan and Rates Study(Water Rate Study) was completed in December 2014. It was subsequently revised in February 2015 for the final rate plan proposal to City Council. The Water Rate Study was based upon a comprehensive review of the City of Fresno's financial and budgetary reports; water system plans; billing information, such as customer classes and current usage data; future planned capital improvements projects; bond covenants; projected system operations and maintenance and any other information deemed applicable. There are a number of assumptions in the Water Rate Study related to future water sales, the annual number of new connections, interest rates, cost inflation and other items. The unifying theme underlying all assumptions is that water rates based on the assumptions should have a very high probability of recovering annual revenue requirements. In addition, in a separate action from the rate plan, the Water Affordable Credit Program (Water ACP) is being added as a financial assistance program for qualified low-income water utility accountholders. It is described at the end of this detail. Following is a summary of how the recommended changes to water service charges were developed. See Attachment 1 for a table showing the proposed water service charges. Rate Setting Process The study was conducted using the following steps of analysis: 1. Revenue Requirements - The amount of revenue required from water rates is dependent upon producing sufficient revenue to meet the following three funding requirements: Cover all operational and maintenance (O&M), capital and debt service expenditures (net of non-rate revenue) Maintain a prudent level of fund balances • Satisfaction of debt service coverage covenants 2. Cost-of-Service - Allocates the revenue requirements to the various customer classes of service in a fair and equitable manner 1 OF r,9 r = 6 a 3. Rate Design - Considers both the level and structure of the rate design to collect °'*ttl +•`° the distributed revenue requirements from each class of service Revenue Requirements The water system revenue requirements are comprised of five basic categories: Operational and Maintenance Expenses - In FY 2015, the City's O&M expenditures are budgeted at $49.4 million. O&M expenditures include costs, such as labor, chemicals, power, water purchases, parts, equipment, contract repair, etc. These costs continue to rise due to negotiated labor contract increases; inflationary increases for goods and services; maintaining compliance with more stringent state and federal water treatment regulations; operation and maintenance of new facilities and water system components; and repair and maintenance of old, failing infrastructure. The Water Rate Study also considered the projection of O&M expenditure increases beyond FY 2015 as a factor in developing future rate increases. These expenditures increased to $61.1 million per year in FY 2019, and include a 3% annual inflation factor. The total for the five year period is $271.4 million. Cal)ital Imp%v_ements Funded From Rates - The City has developed a comprehensive Water Capital Improvement Program (CIP) to address current and future water system needs. These projected costs include a three percent annual inflation factor due to anticipated increases in construction costs. This inflation rate helps ensure that the City has adequate resources to complete the necessary projects. These projects are required to reverse the declining water table, replace aging infrastructure, meet regulatory requirements and meet operational demands. CIP project expenditures planned for FY 2015 through FY 2019 as recommended in the Metro Plan total approximately $429 million and are summarized in the following categories along with the total expenditures for each category: • Intentional Groundwater Recharge - $6.4 million • Raw Water Supply Facilities — $98.4 million • Surface Water Treatment - $186.4 million • Finished Water Distribution - $55.4 million • Rehab/Replacement & System Upgrades - $82.5 million The CIP is to be funded through a combination of system revenues and bond financing. Approximately 80% ($343 million) of the $429 million is projected to be funded by debt financing. Bond issuances are scheduled for each year from 2016 through 2019 and an assumption of a $186.4 million low interest loan from the State. The remaining expenditures of$86 million (20%) are funded from "pay-as-you-go" revenues from water rates. Also, the Division will continue to pursue grant and low-interest loan opportunities, but for purposes of the Water Rate Study, no additional revenues were assumed from these sources. Debt Service - The City's existing annual debt service principal and interest payments are approximately $16.7 million for three bonds, three low-interest state loans, one no- t 4�.4 OF FR. r. a � interest state loan and one loan through the Fresno Irrigation District. New debt service principal and interest payments are projected to increase in FY 2016 to a total of$18.1 million. Additional debt service by FY 2019 is projected to be approximately $14.9 million per year if the two additional bond issuances are made in FY 2017 and FY 2018 and the state low-interest loan is awarded. The total debt service is estimated to be approximately $31.5 million by FY 2019. Debt Service Coverage Ratio Requirements - As a condition of bond issuances and state loans, the City must make rate covenants to fix, prescribe and collect rates, fees and charges for the Water System each fiscal year, which will at least yield Net Revenues equal to at least 125% of the estimated Debt Service. The proposed rate increases are designed to meet this requirement. Projected ratios during the study period vary from 1.67 in FY 2015 to 1 .65 in FY 2019. Enterprise Fund Target Balance - A target fund balance (reserves) was developed for the enterprise fund to provide for levels of working capital that will enable the City to adjust to unexpected changes in accounts receivable from ratepayers and pay for unexpected increases in O&M expenses and emergency capital costs. Most bond rating agencies and financial advisors have recommended at least a minimum of 180 days of cash to help improve the Water Enterprise's bond rating. The days of cash in FY 2015 is 287 days ($38.8 million) and decreases to 237 days ($39.7 million) in FY 2019. Cost of Service Methodology The key steps in the process of determining cost-of-service water rates include: 1. Determining, as part of the 5-year financial planning process, the annual system revenue requirement from water rates; 2. Forecasting annual water demand for the system, and for each customer rate class; 3. Assigning the revenue requirement from water rates to functional cost categories such as supply, treatment, pumping, transmission, distribution, and administration; 4. Classifying the revenue requirement from water rates based on the engineering design and/or operational purpose for which a cost was incurred. Costs are generally incurred to meet customer base (average) or peak water demands, provide customer service functions such as meter reading or billing, or provide fire protection services; 5. Determining the revenue requirement from water rates for specific customer rate classes by assigning them the costs commensurate with their level of service.; 6. The final step in the ratemaking process is rate design. This is the process of developing a combination of fixed charges and consumption charges that will recover the revenue requirement from water rates for each specific customer rate class. 3 OF Recommended Rate Structure The total amount of revenue required from charges is allocated between amounts to be recovered from meter service charges, private fire protection service charges and quantity charges. This is accomplished by first allocating costs to functional cost categories —those that are independent of the amount of water use (for example, billing, collection, meter reading, fire protection) and those that are dependent on the amount of water use (source of supply, treatment, storage, distribution, etc.). Monthly Meter Service Charges and Private Fire Protection Charges —The development of recommended monthly meter service and private fire protection charges based on cost of service principles involves allocating revenue requirements that are independent of water use among three categories of costs and dividing those dollar amounts by the projected number of meters,equivalent meters or equivalent connections. The total percent for the monthly meter service and private fire protection charges is recommended at 29% and is allocated among the following three cost components: • Billing and collecting: 8.9% - costs that include, but are not limited to, meter reading, billing, customer accounting, customer service and collecting expenses. • Meters and service laterals: 11.4% - costs that include, but are not limited to, the maintenance and capital costs related to meters and services that provide water for domestic use (potable water and irrigation water). • Fire protection: 8.7% - costs that includes, but is not limited to, public fire hydrants and related branch mains and valves. Quantity Charges - The development of recommended quantity charges based on cost of service principles is based on allocating revenue requirements related to the source of supply and production of water and dividing that dollar amount by the projected amount of water use. The percent of revenue required from rates to be recovered from quantity charges is 71%. Note that these percentages are completely dependent on assumptions of projected water use for each customer class (see revenue projection section). A major change in the proposed revised rate structure is to replace the current two different quantity charges (SFR and Customers Other than SFR)with a single quantity charge applicable to all customers. Other Maior Changes in Rate Structure - It is recommended that the City adopt the following additional changes in the rate structure: 1. Create a separate set of meter charges for irrigation meters. The proposed meter charges for irrigation meters now exclude fire protection costs. 2. Eliminate the allowance for senior citizens. Previously, SFR customers were charged a flat rate for water service and qualifying senior citizens were offered a 10% discount based on a determination that they used less water. With the conversion of all SFR accounts to water meters, customers are now charged based on what they use and the senior citizen discount has became moot. Therefore, the allowance for senior citizen customers based on flat rates can be deleted from the MFS as it is no longer being charged. 4 411,, OF PpF ,tom n � P 3. Restructure the private fire protection service charges. These charges will now "CD OL° y include only the account and fire service components and exclude the domestic component. 4. Adjust private fire protection service charges for private hydrants and for meter sizes 4 inch and smaller. The charges for these services will now be rated at the same capacity. 5. Delete all other miscellaneous residential flat rate charges. Currently, there are other miscellaneous charges that are applicable to residential customers with flat charges. These are for Charges for Additional Living Units and Air Conditioning / Refrigeration Units and Discharge Water into a Dry Well. These charges will be eliminated as they became obsolete due to the implementation of utility bills based on metered water use. 6. Eliminate the water treatment charge for fluoridation. This program was provided to approximately 4,950 customers and was projected to recover approximately $271,000 in charges. As of July 1, 2013, the program was ended and therefore, this charge will be eliminated and the associated revenue not included in the rate plan. Revenue Projections In FY 2015, the proposed 7% increase in revenue from rates at current rates for FY 2014 is projected to generate an estimated additional $4.4 million for a total of $66.9 million in annual customer user charges (not including revenue of$5.2 million collected in FY 2015 from the now rescinded 2013 rate plan). This is based upon a projection of water usage by customers and the projected growth in the number and type of service connections and any proposed rate increases. Water sales and account growth projections in this study are intended to be slightly lower than what would be expected under usual weather conditions and realistic development scenarios to help insure that sufficient revenues are generated. This estimate is divided between the following two categories of water service accounts: ■ Single-Family Residential -The conversion of SFR accounts from unmetered to metered connections was mostly completed in FY 2013. Without a history of metered usage for a fully metered system and the impacts of projected water conservation, certain estimates had to be made. For purposes of this Water Rate Study, in FY 2015, it is projected that SFR accounts with metered connections will use 21 hundred cubic feet (HCF)/month (on an average annual basis). For the remaining four fiscal years of the rate plan, the projections are as follows: o FY 2016 - 19.0 HCF o FY 2017 - 17.5 HCF o FY 2018 — 17.0 HCF o FY 2019 - 16.5 HCF These are conservative estimates that attempt to account for future annual conservation by customers. The number of residential accounts is approximately 110,000 and projected to grow by an average of less than one percent per year during the study period. 5 G1�A OF Fy�s Ck �� �wM ye4v Nonresidential Accounts —These accounts are categorized as either commercial, irrigation, private fire protection or travel meters with subcategories for commercial, schools, industrial, municipal and multi-family. The current number of active domestic, irrigation, and travel meter accounts is approximately 19,400. Approximately 83% are domestic accounts with the remainder irrigation (17%). Travel meters number about 130. The total number of domestic and irrigation services is projected to increase by about 15 per year for the study period. The estimated water usage for these accounts is based on prior year experience as these customers have been metered for many years. For the rate study, water use is projected to decrease by 2% per year. • Private Fire Protection Accounts—These accounts are for private fire hydrants and private fire protection connections. Fire protection charges for services are determined by connection size. The current number of private fire hydrant services is approximately 720 and 3,200 for fire protection services. The projected annual growth rates for private fire hydrants and private fire services are five and six respectively. Rate Recommendation To accomplish the objectives established by the evaluation criteria it is recommended that the following increases for revenue from rates be adopted in the MFS: % Increase in Revenue Fiscal Year From Rates Effective Date 2015 7% 1 March 30, 2015 2016 11% July 1 , 2015 2017 12% July 1 , 2016 2018 14% July 1, 2017 2019 13% July 1, 2018 1. Comparison of 12 months revenue at current rates for FY 2014 versus 12 months revenue at new rates for FY 2015 See also attached rate table. The future rate increases are the maximum amount to be increased and will be reconsidered each fiscal year as part of the budget process. A copy of the draft Water Utility Financial Plan And Rates Study is available upon request and at: http://www.fresno.gov/NR/rdonlyres/1 C6E6C60-880B-4F95-A883- 066D77BBCEB3/310021fno wtr rot d3 22dec2014.odf 6 �K OF P.9e Water Affordability Credit Program pp'4"'D OC(- � In addition to designing a rate plan that meets the State's water affordability criteria for the entire five-year period, the Water Affordable Credit Program (Water ACP) is being added as a financial assistance program for qualified low-income water utility accountholders. The objective of this recommended program is to provide financial assistance to accountholders based on demonstrated financial need. The proposed discount for water service is intended to mitigate the first-year impact on accountholders that use an annual monthly average of 18 HCF of water per month. If the proposed rate plan is adopted, the first-year rate increase would result in an average monthly water bill impact of$3.53 per month (based on annual average monthly usage of 18 HCF). Accordingly, the proposed value of the Water Affordability Credit is $5 per month, which translates to $60 for a 12-month period. The proposed Water ACP will be funded with an annual appropriation of$1 million to provide financial assistance to approximately 16,700 income-qualified accountholders per year. The source of funding for the Water ACP shall be revenue collected by the City Utility Billing and Collections Division as late payments and delinquency charges. To qualify for the Water ACP, accountholders can submit documentation that they qualify for PG&E's California Alternate Rates for Energy ("CARE") Program or one of Fresno County's human services program. If an individual qualifies for one of the programs listed above that are administered by PG&E or Fresno County, using the same name and address as on the individual's utility account with the City, then the individual could submit an application to receive the City's Water ACP. In addition, the Administration will review the water consumption records of Water ACP participants to identify those whose annual average monthly water consumption rate is greater than 18 HCF per month. Assessment surveys and rebates will be offered to assist in reducing this usage. ATTACHMENTS 1. Schedule of Current and Proposed Schedule of Rates, Fees, and Charges for Public Water Service 7 Vti q 0 F F,? Sy ATTACHMENT h . c Schedule of Current and Proposed Schedule of Rates, Fees, and Charges for Public Water Serviced>� City of Fresno effective dates> 3/30/2015 7/1/2015 7/1/2016 7/1/2017 7/1/2018 Item Current FY15 FYI FYI FYI FYI Quantity Rates, $/HCF Single Family $0.610 $0.92 $1.09 $1.28 $1.50 $1.74 All Others $0.745 $0.92 $1.09 $1.28 $1.50 $1.74 Meter Charges, $/month Domestic 3/-inch or smaller $10.03 $8.50 $9.30 $10.50 $11.90 $13.50 1.0-inch $13.51 $11.20 $12.30 $13.80 $15.80 $17.90 1.5-inch $18.89 $13.00 $14.40 $16.10 $18.40 $20.80 2.0-inch $27.09 $22.10 $24.40 $27.30 $31.30 $35.30 3.0-inch $45.07 $33.00 $36.40 $40.80 $46.70 $52.80 4.0-inch $63.03 $50.00 $55.00 $62.00 $70.00 $79.00 6.0-inch $99.01 $95.00 $105.00 $118.00 $135.00 $152.00 8.0-inch $152.96 $441.00 $487.00 $545.00 $624.00 $705.00 10.0-inch $179.83 $696.00 $768.00 $860.00 $984.00 $1,113.00 12.0-inch na $914.00 $1,009.00 $1,131.00 $1,293.00 $1,462.00 Irrigation 3/-inch or smaller $10.03 $6.70 $7.40 $8.30 $9.50 $10.70 1.0-inch $13.51 $8.40 $9.30 $10.40 $11.80 $13.40 1.5-inch $18.89 $9.50 $10.50 $11.70 $13.40 $15.20 2.0-inch $27.09 $15.10 $16.70 $18.70 $21.30 $24.10 3.0-inch $45.07 $21.80 $24.10 $27.00 $30.80 $34.90 4.0-inch $63.03 $32.00 $36.00 $40.00 $46.00 $51.00 6.0-inch $99.01 $60.00 $66.00 $74.00 $85.00 $96.00 8.0-inch $152.96 $273.00 $301.00 $337.00 $386.00 $436.00 10.0-inch $179.83 $429.00 $474.00 $531.00 $607.00 $687.00 12.0-inch na $564.00 $622.00 $697.00 $797.00 $901.00 Private Fire Protection Service Charges,$/month Fire Hydrants $23.94 $28.80 $31.70 $35.40 $40.40 $45.60 Fire Service Connections 1.0-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 1.5-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 2.0-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 2.5 and 3-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 4.0-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 6.0-inch $35.94 $28.80 $31.70 $35.40 $40.40 $45.60 8.0-inch $47.92 $62.00 $68.00 $76.00 $87.00 $98.00 10.0-inch $59.90 $111.00 $122.00 $136.00 $155.00 $175.00 12.0-inch $71.88 $178.00 $196.00 $219.00 $250.00 $283.00 CITY OF FRESNO MASTER FEE SCHEDULE a R pq ti ?`6 OCT.S PUBLIC UTILITIES DEPARTMENT WATER RATES** Fee Description & Unit/Time Current Amnd water-:3ewic�eCharges,Flat Rte sir^'e family only)- Amend For-premises ---- c ^eRtaH fl f♦ c�ivc.�-ro�che tgt4- rrcccTvc ehafge-steal}�he 911/2008 kirst 6,000 squaFe f 22.87 Delete —€-aeh addit+oRaP }fWe feet 0.228 Delete SeniOF 6zes-(62 years-4of•e1der}rneeting a44he canditiGrs listed below: 4, �+rncei #er�tFy 2, Sewmre must be in name of sen;oF citmaen; Qe�tipafltrra f@5iEFif Fik�6# lERiEEFtf3F Ele�eFFF aFttS Dt-Se31FFlr tf $Fl�F}e t lL£9ed thfee-EceupanAs peF amide e)• 4, ta"e- IORgeF qualify, —First 6,000 {.,.+.,,ress- t&ize 29.56 Delete —€@6h add+tia+aa' ''�,uare feet 0.204 Delete Addit4Daal-c"e5-+Nil' be added to the bas... or-t l} ft. Additio g-w4ft same premises (upi,i metwed) F moN4 -11778 Delete Air sar i+#+naingJfe ge #+ +�fai#{ eclumpped F vsayif19- 11.99 Delete Disehw-ge-wRte-dry-we#"ton per 9 Delete Air, n€rsn/. ;�z kH+-uni4f#stalled and equipped—with- 3:-96 Delete water-savi Gnt4 * Rates enffest+v:, �,- nQ - n/�/„� =-Rate�5t�ali 7e aflj�+sEarf r ual}y 13y s#a€€Eiuri^^the b, s moo+. SS W r l t# raFe�+f►e€ t as Res NE 2007 79 FlRt4atO-Watef-Ge l'+fF£ if}F'$�9F8iF lA f FRI��F2Si(l8rl�ic}i 5H6{F}ffier�r5 i l�SliF}69 —vr--unt+�-alf-single-farriily-resWenGes aFe rnetefet#, hiGhever,-�AfFA- All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 12 CITY OF FRESNO MASTER FEE SCHEDULE PUBLIC UTILITIES DEPARTMENT WATER RATES" Fee Descrytion_& Unit]Time Current Amnd Water, Metered Service Rate total charge shall be monthly meter Amend service standby charge plus quantity charge based on usage. €neje Water Meter Service Standby Ceharge, (meter size(per month): 9PU24" Domestic 522 3/4-inch or smaller 1003 8.50 Effective 1-inch 43.51 11.20 3/30/2015 1-1/2-inch 48.89 13.00 2-inch 27.09 22.10 3-inch 46.07 33.00 4-inch 83.02 50.00 6-inch 99.0i 95.00 8-inch 152.96 441.00 10-inch 17-9.83 696.00 12-inch New 914.00 Irrigation*** 3/4-inch or smaller New 6.70 1-inch New 8.40 1-1/2-inch New 9.50 2-inch New 15.10 3-inch New 21.80 4-inch New 32.00 6-inch New 60.00 8-inch New 273.00 10-inch New 429.00 12-inch New 564.00 Water Quantity Charge: Gu Aemerc QtheF Than Sin All Customer Classes Each 100 Cubic Feet(HCF) 0.745 0.92 1,000 gallons 0.995 1.23 84fKj1e-F-an;i"e6ideRti01 4.87- Each 400 GehlG Feet(HGF) 0.61-0 Delete EffeGtiVe 1,000 gallons 0.840 Delete 39420Q Water Affordability Credit for Income- Qualified 522 Single Family Residential Accounts Only, $/Month New Up to$5.00 Effective 7/1/2015 * Rates effective 9/1/88 3/30/15 ** Rates shall be adjusted annually by staff�-Elet­ Aget-pf:eoss to reflect the rates in effect as per Res. No.2007 79 ***These charges were previously charged at the Domestic service rate. All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 13 a P CITY OF FRESNO MASTER FEE SCHEDULE T o ti pro ocr.' PUBLIC DEPARTMENT WATER RATES" Fee Description& Unit/Time'"' Current Amnd Water Quantity Charge (continued): Wells, private(used for irrigation or commercial purposes when required to be metered) Each HCF 0.218 1,000 gallons 0.290 Water drawn from a fire hydrant/Minimum per month 29.97 Backflow Prevention, Program Fee 512 Per assembly/per month 3.00 Effective 1/1/2013 Private Fire Protection Charges, $/Month Fire Hyd ant, onpr+vate operty-f fl ) Private Hydrants 23.94 28.80 Amend Errcccrv-c 1 91 /.ter i20088 522 Fire Service Connections"'' Effective 1-inch New 9.90 3/30/2015 1-1/2-inch New 9.90 2-inch New 9.90 2-1/2 and 3-inch New 9.90 4-inch New 9.90 6-inch New 28.80 8-inch New 62.00 10-inch New 111.00 12-inch New 178.00 FiFC Pro Autematile SpFinklep-SerAce -++ast 40PIeter-GF leqs- sGfo a) 23.94 Delete e�}er-{ ameter-ineh-peF4non a) 5-99 Delete Irrigation of City-Owned Property, Not Metered 100 square feet 0.24 WatefTreatfneet-Charge, Fluoridation ReF nief*h 4-.62 Delete Penalties 464 Fire hydrant, unauthorized use/first violation 500.00 Each violation after first violation 1,000.00 Rates shall be adjusted annually by staff dmfioq4he43odgeFpresess to reflect the rates in effect as per Res. No..:....;. -'4 Rates effective 9/4.Q8 3/30/15 These charges were previously a part of the Fire Protection Automatic Sprinkler Service charges. All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 14 OF fRfi CITY OF FRESNO MASTER FEE SCHEDULE = n s 'ro ucr DEPARTMENT • 'PUBLIC WATER RATES" Fee Description &Unit/Time Current Amnd Penalties (continued) Fire hydrant damage repair fee 500 Excavation not required 318.00 Excavation required 100% Delinquent notice Sewer connection, deferred payment plan, 60 days 2.00 + delinquent accumulated interest& principal installment Returning travel meter after permit expiration date per day 10.00 Conditions of service work(related to Water Wastage Services, FMC 6-520(d) First incident(deferred until fourth incident)* 45.00 Second incident(deferred if conservation class attended)* 45.00 Third incident(plus fee deferred from second incident if a 45.00 water conservation class was attended)* Fourth incident(plus fee deferred for first incident)* 45.00 Each incident after four 45.00 Illegal connection/ per violation 45.00 (See Service Work for disconnection, damage, and reinstallation of service after first incident.) Delinquent Payment 499 Utility billings/ per billing for water, sewer, sanitation, and/or solid waste service if unpaid balance> $10.00 2% Notification to discontinue services for non-payment of utility charges: Customers/per notification 8.00 Customers with tenants/ per tenant notified at a single 2.00 billing address Minimum 8.00 Research project fees/ per hour 45.00 Discontinuance of service for non-payment and restoration of service after payment Per Discontinuance/ Restoration 15.00 NOTE: The above fees are administered by the Utilities, Billing, and Collection Section of the Department of Public Utilities. * Within a two-year period. All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 15 CITY OF FRESNO MASTER FEE SCHEDULE PUBLIC UTILITIES DEPARTMENT WATER RATES** Fee_Aescrilation & Unit/Time Current Amnd Service Work(related to remedy of illegal water connection) 510 Blind washer/per service 219.00 Service disconnection/Restoration/per replacement 368.00 Padlock on curb stop/ per installation 10.00 Intentional Damage to Meter/Meter Box(Cost& Overhead) Intentional Damage Angle Meter Stop/Curb Stop Excavation not required 406.00 After-hours turn on service work: 464 Water, Discontinuance & Restoration of service (except 169.00 emergency) per call Water, Temporary Service* 456 Residential (non-metered) Each 24 hours 25.00 Each additional day +Daily Rate(prorated based on bimonthly rate) Single Family Residential (metered) See Water Metered 487 Service Rates Effective 3/1/2010 Fire hydrant permit 25.00 Fire hydrant wrench deposit 90.00 3-inch meter, turbine 500 Deposit 550.00 Deposits required shall be refunded upon the return of all equipment. Deductions shall be made for water service charges due and the cost of repair or replacement of damaged equipment. Any additional replacement costs will be billed to the customer. See Water Metered Service Rate section for the quantity and water meter service charges (3-inch Domestic Service). Well Drilling Permit and Examination Water Supply Well/each 175.00 Monitoring Well 1 to 3/ per application 295.00 More than 3/ per each additional well +50.00 * This fee to sunset as of January 1, 2013 for customers on a metered rate " Rates shall be adjusted annually by staff du-r"e-)udget-pfeees; to reflect the rates in effect as per Res. No.2007 79 All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 16 CITY OF FRESNO ti OF F MASTER FEE SCHEDULE x * G a � AArfp 66S ,.�. PUBLIC r DEPARTMENT r s WATER RATES" Fee Description & Unit/Time Current Amnd Well Inspection, per well site Well Abandonment 62.00 500 Well Destruction 236.00 500 Monitoring Well Destruction 174.00 500 Well Destruction Inspection Reschedule(when not ready on 46.00 inspection day) After Hours Well Abandoment 78.00 500 After Hours Monitoring Well Destruction 285.00 500 Underground Utility Remark Fee(per call back) 133.00 500 Sale of Surplus Dirt 456 City load /per yard of dirt 5.00 Customer pick-up/ per yard of dirt 1.20 WATER CONNECTION CHARGES (FMC 6-507) Fee Description & UnitfTime Current Amnd Deferment of Payment applicable to existing See FMC Sctn 6-305 (c) single-family residences Same basis and fees as sewer connection charges. Frontage Charge Front foot or fraction 6.50 Installation Charges 464 Meter&Service Installation (when installed together) 1-inch 2,241.00 1-1/2-inch 2,508.00 2-inch 2,671.00 Minimum residential service connections: 489 Lots less than 20,000 square feet(1-inch) Lots 20,000 square feet or greater(1-1/2-inch) Meter Installation (when installed on existing services) 415 1-inch 330.00 1-1/2-inch 455.00 2-inch 530.00 Larger than 2-inch (FMC 6-507(a)(3) Cost plus overhead 100% All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 17 CITY OF FRESNO `' s MASTER FEE SCHEDULE n { Ast�,e rK tq. PUBLIC UTILITIES DEPARTMENT WATER CONNECTION CHARGES (FMC 6-507) Fee Description & Unit/Time Current Amnd Installation Charges (continued): Service Installation (without meter) 464 Service to house(between property line and house)can be reduced based upon setback, fixtures, etc., as provided in the UPC and UBC. (includes tap, service line, corp stop, curb stop and fittings) 1-inch 2,178.00 1-1/2-inch 2,363.00 2-inch 2,486.00 Cost plus overhead 100% Recharge Area Fee Area (per unit**) 160.00 438 t*No. 101 -0- t t*No. 101 -0- No. 201 -0- No. 301 -0- No. 401 -0- ***No. 501 56.00 Transmission Grid Main (TGM) Charge 417 For parcels in the UGM area, TGM charges are deposited in separate UGM-TGM charge service area accounts. Aggregate gross area: Less than 5 acres Net acre or fraction 804.00 Minimum charge 80.00 5 acres or more Gross acre or fraction 643.00 Transmission Grid Main Bond Debt Service Charge per FMC Section 6-507(a)(8) Less than 5 acres Net acre or fraction 304.00 Minimum charge 100.00 5 acres or more Gross acre or fraction 243.00 All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 18 OF Pl? CITY OF FRESNO MASTER FEE SCHEDULE , p R�rfp oCt �1.. 11LIWTILITIES DEPARTMENT WATER CONNECTION CHARGES (FMC 6-507) UGM Water Supply Fee 417 Single-Well Supply Areas (per gross acre) No. 11A 172.00 No. 86 678.00 No. 90 322.00 No. 91 609.00 No. 102 511.00 No. 107 609.00 No. 113 609.00 No. 132 385.00 No. 136 356.00 No. 137 356.00 No. 141 408.00 No. 142 379.00 No. 153 557.00 No. 308 563.00 No. 310 505.00 Multi-Well Supply Areas (per unit**) 438 t(northeast) No. 101-S 567.00 t t(northeast) No. 101-S 456.00 (northwest) No. 201-S 407.00 (west) No. 301-S 508.00 (southwest) No. 401-S 371.00 ***(southeast) No. 501-S 1,738.00 Well Head Treatment Fee-Area (per unit**) 438 t*No. 101 179.00 t t*No. 101 -0- No. 201 -0- No. 301 221.00 No. 401 31.00 ***No. 501 79.00 1994 Bond Debt Service Fee-Area(per unit**) 438 t No. 101 281.00 t t No. 101 895.00 No. 201 -0- No. 301 60.00 No. 401 -0- ***No. 501 93.00 * Service Area No. 101 was established by the Department of Public Utilities Director on March 19, 1995 in accordance with the provisions of Ordinance No.95-4;the provisions of Resolution No.90-18 remain in effect for development in the Woodward Park Community Plan Area. ** Unitas defined in FMC 6-501(kk) ***501 Emergency Measure, Resolution No. 95-18 t For subdivision maps deemed complete prior to June 10, 1997 t t For subdivision maps deemed complete on or after June 10, 1997 All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 19 CITY OF FRESNO {, a MASTER FEE SCHEDULE OR �4 �r�0 OCT 1� WATER CONNECTION CHARGES FMC 6-508 Fee Description & tlnitfTime Current Amnd Water main reimbursement for installation See FMC 6-508(c) Transmission Grid Main (TGM)credit/reimbursement for private installation when required to be constructed to transmission grid size(per linear foot): 12-inch diameter 10.00 14-inch diameter 14.50 16-inch diameter 31.00 24-inch diameter 41.00 UGM area maximum (except as provided in FMC 6-508(d) 10,000.00 Trench surfacing credit for TGM installations (per linear foot): In existing asphalt concrete streets 10,000 or construction costs, whichever is less In existing non-asphalt concrete streets 6.00 or construction cost, whichever is less All fees effective 03/30/15 unless otherwise noted MFS Amendment#522(February 2015) [2/19/20155:57 PM] Page 20 March 3, 2015 Council Adoption: 2/26/2015 RECEIVED Mayor Approval: TO: MAYOR ASHLEY SWEARENGIN Mayor Veto: Override Request: `„ s FROM: YVONNE SPENCE, CMCylpffl 3 I'M 3 `11 A� City Clerk a4`ea ucr.' SUBJECT: TRANSMITTAL OF COUNCIL OR VETO At the Council meeting of 2/26/15, Council adopted the attached Resolution No. 2015-036 entitled 522nd amendment to the Master Fee Schedule Resolution 80-420 to adjust water fees in the Public Utilities Water Fee Section according to Proposition 218, Item number 5:30 P.M., File ID#15-123, by the following vote: Ayes Brand, Brandau, Caprioglio, Olivier, Soria, Baines Noes Quintero Absent None Abstain None Please indicate either your formal approval or veto by completing the following sections and executing and dating your action. Please file the completed memo with the Clerk's office on or before March 9, 2015. In computing the ten day period required by Charter, the first day has been excluded and the tenth day has been included unless the 10th day is a Saturday, Sunday, or holiday, in which case it has also been excluded. Failure to file this memo with the Clerk's office within the required time limit shall constitute approval of the ordinance, resolution or action, and it shall take effect without the Mayor's signed approval. Thank you. PPROV INO RETURN: VETOED for the following reasons: (Written objections are required by Charter; attach additional sheets if necessary.) Date: Ashley Sweare t in, Mayor COUNCIL OVERRIDE ACTION: Date: Ayes Noes Absent Abstain ily of , S� cllslcL*��� � ,E_!V E D BILI i ! Ir V. gor BUDGET & MANAGEMENT STUDIES DIVISION ^1 �� �-rEX20 CA C LL I , , �.�S1 July 13, 2015 TO: YVONNE SPENCE, City Clerk City Clerk's Office- THROUGH: ffic THROUGH: JANE SUMPTER-- 7-0 Tget Manager Budget and Management Studies Division FROM: SHARON MCDOWELLWnior Budget Analyst Budget and Management Studies Division SUBJECT: TECHNICAL CORRECTION ADJUSTING WATER FEES IN THE PUBLIC UTILITIES WATER FEE SECTION ACCORDING TO PROPOSITION 218 It has come to the attention of the Budget Office that a technical correction needs to be made to Attachment 1 of Resolution No. 2015-36. Attachment 1 reflects the Schedule of Current and Proposed Schedule of Rates, Fees, and Charges for Public Water Service. As previously presented three of the service size categories shown in Attachment 1 reflect a specific service size instead of the actual applicable service range. Those service sizes in Attachment 1 requiring correction are as follows: ATTACHMENT 1 Rate Service Size originally reflected Corrected Service Size Metered Charges- Domestic 3/4-inch 3/4 inch or smaller Metered Charges- Irrigation 3/4-inch 3/4 inch or smaller Private Fire Protection - Fire Service Connections 2.5-inch 2.5 and 3-inch All references other than Attachment 1 within the Master Fee Schedule amendment were reflected correctly. We are asking that you make this memo and the corrected attachment a part of the public record. If you have any questions regarding this memo, please contact me at extension 7057. Attachments K:\USERS\DOCS\MEMOS\FY 2015\TECHNICAL CORRECTION ADJUSTING WATER FEES 2015-36.DOCX] F * i o ATTACHMENT 1 Schedule of Current and Proposed Schedule of Rates, Fees, and Charges for Public Water Service °aar ,s City of Fresno �° effective dates> 3/30/2015 7/1/2015 7/1/2016 7/1/2017 7/112018 Item Current FYI FYI FYI FYI FYI Quantity Ues, $/HCF Single A(illy $0.610 $0.92 $1.09 $1.28 $1.50 $1.74 All Others ,. $0.745 $0.92 $1.09 $1.28 $1.50 $1.74 Meter Charges',jlmonth Domestic �. 3/-inch '''� $10.03 $8.50 $9.30 $10.50 $11.90 $13.50 1.0-inch $13.51 $11.20 $12.30 $13.80 $15.80 $17.90 1.5-inch $18.89 $13.00 $14.40 $16.10 $18.40 $20.80 2.0-inch $27.09 $22.10 $24.40 $ .30 $31.30 $35.30 3.0-inch $45.07 $33.00 $36.40 $40.80 $46.70 $52.80 4.0-inch $63.03 $50.00 $55.00 $62.00 $70.00 $79.00 6.0-inch $99.01 $95.00 $105.00 $118.00 $135.00 $152.00 8.0-inch $152.96 $441.00 $487.00 $545.00 $624.00 $705.00 10.0-inch $179.83 $696.00 $768.00 $860.00 $984.00 $1,113.00 12.0-inch na $914.00 $1,009.00 $1,131.00 $1,293.00 $1,462.00 Irrigation %-inch $10.03 $6.70 $7.40 $8.30 $9.50 $10.70 1.0-inch $13.51 $8.40 $9.30 $10.40 $11.80 $13.40 1.5-inch $18.89 $9.50 $10.50 $11.70 $13.40 $15.20 2.0-inch $27.09 $15.10 $16.70 $18.70 $21.30 $24.10 3.0-inch $45.07 $21:80 $24.10 $27.00 $30.80 $34.90 4.0-inch $63.03 $32.00 $36.00 $40.00 $46.00 $51.00 6.0-inch $99.01 460.00 $66.00 $74.00 $85.00 $96.00 8.0-inch $152.96 ,'$273.00 $301.00 $337.00 $386.00 $436.00 10.0-inch $179.83 $429.00 $474.00 $531.00 $607.00 $687.00 12.0-inch na ;-` 1564.00 $622.00 $697.00 $797.00 $901.00 Private Fire Protection Service Charges, $/month Fire Hydrants $23,94 $28.80 $31.70 $35.40 $40.40 $45.60 Fire Service Connections 1.0-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 1.5-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 2.0-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 2.5-inch $23.94 $9.90 $1,0.90 $12.20 $13.90 $15.70 4.0-inch $23.94 $9.90 $10.90 $12.20 $13.90 $15.70 6.0-inch $35.94 $28.80 $31.70 $35.40 $40.40 $45.60 8.0-inch $47.92 $62.00 $68.00' $76.00 $87.00 $98.00 10.0-inch $59.90 $111.00 $122.00 $136.00 $155.00 $175.00 12.0-inch $71.88 $178.00 $196.00 $219.00 $250.00 $283.00 i i i