CC RESOLUTION 3397RESOLUTION NO. 3397
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EL SEGUNDO, CALIFORNIA, ESTABLISHING A
SYSTEM FOR THE FIXING AND ESTABLISHING OF
RATES AND CHARGES FOR WATER SERVICE IN SAID
CITY AND RESCINDING RESOLUTION NOS. 3233 AND
3274 AND ALL OTHER RESOLUTIONS IN CONFLICT
HEREWITH.
WHEREAS, Chapter 14.04 of the "E1 Segundo Municipal
Code" fixes, adopts, and establishes the rules and regulations
• for the service of water from the waterworks system of the City;
and
WHEREAS, Section 14.04.060 of said Chapter 14.04 of
the "El Segundo Municipal Code" authorizes the rates and charges
for water service to be fixed and established by resolution; and
WHEREAS, the City of E1 Segundo has had an extensive
financial, procedural and rate analysis conducted of its City
Water Utility System; and
WHEREAS, said analysis has recommended certain business
methodologies to be followed so as to assure that the citizens
and property owners of the City are assured an adequate water
distribution system financed on an equitable basis; and
WHEREAS, the City Council of the City of E1 Segundo is
desirous of complying with both the letter and the intent of
Article XIIIB of the California Constitution and placing the City
Water Utility System on a business basis, thereby preventing the
City general taxpayer from having to subsidize said System with-
out receiving equal benefit therefrom; and
WHEREAS, the City Council also is desirous of assuring
the long term financial and physical viability of the said City
Water Utility System and, further, of assuring the equitability
i• of rates as between various categories of users connected to and
using water from said City Water Utility System;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, DOES RESOLVE AS FOLLOWS:
SECTION 1. DEFINITION OF "COSTS REASONABLY BORNE ".
The term "costs reasonably borne" as used herein shall be defined
as intended by the Authors of Article XIIIB (Proposition 4 of
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1979) of the California Constitution, which more specifically as
it applies to the City of E1 Segundo City Water Utility System is
defined to contain all the following elements of cost:
A. Personnel - The pro rata share of the gross pay of
all City employees who work on any aspect of the
operation, maintenance, repair, replacement, or admin-
istration of the City Water Utility System.
• B. Employee Benefits - The cost of retirement,
worker's compensation, unemployment insurance, social
security, medical insurance, life insurance, dental
insurance, and any other City -paid personnel insurance,
uniform allowance, and an amount sufficient to fund
accrual of terminal vacation and sick leave pay, and
injured -on -duty employee replacement time at current
employee rates of pay.
Such employee benefits annually shall be computed as a
percentage of salary by employee group and applied to
the appropriate personnel costs as determined in A.
hereof, to determine employee benefits costs.
C. Services and Supplies - All necessary supplies,
materials and contractual services of whatever nature
so long as such are authorized for and utilized for the
benefit of and in the operation, maintenance, repair,
replacement or administration of the City Water Utility
System.
D. Building Occupancy - The pro rata share of the
utilities, repair and maintenance, replacement, land-
scape maintenance, and debt service payment of all
• City- owned, rented or leased buildings in direct
proportion to that used by the City Water Utility
System.
E. Overhead - The pro rata share of the costs of
providing the services and meeting all the costs
reasonably borne of the Mayor and City Council, City
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Clerk, City Treasurer, City Attorney, City Manager,
Personnel Office, Finance Department, and community
promotion programs, in direct proportion as used by the
City Water Utility System. Such expense shall be
expressed as a percentage distributing and charging
such defined overhead costs to the City Water Utility
System.
• Another percentage also shall be determined similarly
and applied, which percentage shall be the pro rata
share of the costs reasonably borne in providing the
services of the Public Works Director and his immediate
staff utilized for the benefit of the City Water
Utility System.
F. Fixed Asset Replacement - The current cost of re-
placement of the water system fixed assets divided by a
thirty year average life. Such replacement cost shall
be determined each year by a California registered
professional engineer, who shall utilize the City -
contracted engineering study establishing such replace-
ment costs as of 1984 by adding, deleting, modifying,
and re- evaluating, if appropriate, the fixed asset
replacement cost of all depreciable fixed assets of the
City Water Utility System having a value of more than
0 $200 and a life expectancy of more than one year.
The fixed asset replacement charge shall be phased into
the cost of water by recognizing the following percent-
ages according to the following schedule:
Beginning
Date
Percentage
July
1,
1986
0%
July
1,
1987
30%
July
1,
1988
60%
July
1,
1989
80%
July
1,
1990
100%
G. Street Charges - Five percent of the total replace-
ment cost of the City streets and alleys divided by a
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twenty year average life, plus five percent of the
annual cost of street maintenance and repair.
H. In Lieu of Taxes - The City property tax rate
applied annually to the fixed asset value of the City
Water Utility System as determined and set in sub-
section F of this section, which payment shall be made
in lieu of the payment of property taxes.
I. Franchise Fee - Two percent of the gross annual
revenues of the City Water Utility derived from all
sources.
SECTION 2. ESTABLISHMENT OF INITIAL WATER RATE
SCHEDULES.
A. Basic monthly readiness -to -serve charge:
0 Monthly Readiness -
Meter Size to -Serve Charge
5/8" x 3/4"
meter
.............
$
.66
3/4"
meter
.............
$
.66
1"
meter
.............
$
3.38
1 -1/2"
meter
............0
$
7.61
2"
meter
.............
$
13.53
311
meter
. . . . . . . . . . . . .
$
30.45
4"
meter
.............
$
54.13
6"
meter
0............
$
121.79
8"
meter
.............
S
216.51
10"
meter
.............
$
338.31
12"
meter
.............
$
487.16
16"
meter
.............
$
866.07
20"
meter
.............
$1,353.23
Additional charges for water consumed per month
are:
For the first 21000 cubic feet or 56 cubic meters of
water used, $.6155 per 100 cubic feet or $.21734 per
cubic meter.
For the next 8,000 cubic feet or 227 cubic meters of
water used, $.6287 per 100 cubic feet or $.22200 per
cubic meter.
For monthly consumption over 10,000 cubic feet or 283
cubic meters, $.6618 per 100 feet or $.23369 per cubic
meter.
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B. Basic bi- monthly readiness -to -serve charge:
Meter Size
5/8" x 3/4"
3/4"
1"
1 -1/2"
2"
3"
411
611
8"
10"
16"
20"
meter
meter
meter
meter
meter
meter
meter
meter
meter
meter
meter
meter
meter
.............
.............
.............
. . . . . . . . . . . . .
.............
.............
..............
.............
.............
.............
.............
.............
. . . . . . . . . . . . .
Bi- Monthly Readiness -
to -Serve Charge
$ 1.32
$ 1.32
$ 6.76
$ 15.22
$ 27.06
$ 60.90
$ 108.26
$ 243.58
$ 433.02
$ 676.62
$ 974.32
$1,732.14
$2,706.46
Additional charges for water consumed bi- monthly
are:
For the first 4,000 cubic feet or 112 cubic meters of
water used, $.6155 per 100 cubic feet or $.21734 per
cubic meter.
For the next 16,000 cubic feet or 454 cubic meters of
water used, $.6287 per 100 cubic feet or $.22200 per
cubic meter.
For monthly consumption over 20,000 cubic feet or 566
cubic meters, $.6618 per 100 feet or $.23369 per cubic
meter.
Where two or more meters are installed in a battery or
manifold the service connection size shall be used for
computing the readiness -to -serve charge and the
consumption charges shall be based on the combined
total readings of all meters in the battery or
manifold.
SECTION 3. WATER LIFELINE SERVICE.
A. mater Lifeline Rate. where the customer has
properly qualified for lifeline rates, the bi- monthly
readiness -to -serve charge shall be:
Meter Size
5/8" x 3/4" meter .............
3/4" meter .............
1 �.
meter .............
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Bi- Monthly Readiness -
to -Serve Charge
$ .34
$ .34
$1.68
In addition, there is a water consumption charge of
. $.4633 per 100 cubic feet or $.16359 per cubic meter
for all water consumed up to 1,000 cubic feet or 28
cubic meters. For water consumed in excess of 1,000
cubic feet or 28 cubic meters bi- monthly, additional
charges will be made in accordance with Section 2 -B of
this resolution.
. B. Water Lifeline Rate - Application. The water
lifeline rate shall be made available to any resident
who is permanently disabled or sixty -two years of age
or older who, upon application for such discount, meets
the following requirements:
(1) Applicant must be a resident and user of the
water service at the address specified on the
application and service must be in the name of the
applicant;
(2) Applicant's combined adjusted gross income (as
used for purposes of the California personal income
tax law) of all members of the household in which
they reside must be twelve- thousand dollars or less
for the prior calendar year;
(3) The water meter must be for residential use
and shall be limited to one inch or smaller size;
(4) A person shall be deemed permanently disabled
if the person receives permanent disability insur-
ance from the U.S. Social Security Administration,
holds a valid certificate from the Department of
Motor Vehicles indicating a handicap, or furnishes
a statement signed by a licensed physician attest-
ing to the permanent disability;
(5) Applications for lifeline rates shall be
renewed on an annual basis. Renewal applications
shall be accepted by the Director of Finance from
April 1 through April 30 of each year.
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SECTION 4. MONTHLY FIRE SERVICE CHARGE. Fire service
• connections shall be billed a percentage of the applicable
readiness -to -serve charge. The percentage shall be as follows:
Beginning Date Percentage
July 1, 1986 10%
July 1, 1987 20%
July 1, 1988 30%
July 1, 1989 40%
July 1, 1990 50%
• SECTION 5. COST REASONABLY BORNE RATE ADJUSTMENTS.
The City Manager, Finance Director, and Public Works Director are
hereby directed and authorized to maintain accurate records of
the costs reasonably borne incurred in providing water service to
the customers of the City Water Utility System and, as appro-
priate, to adjust the initial water rate schedule set out in
Section 2 hereof, which revised rate structure shall take effect
each July 1 of each and every year, if necessary, to assure that
all such costs reasonably borne are financed by water rates paid
by the water customers of the City Water Utility System rather
than by the general taxpayers of the City.
SECTION 6. CONSTRUCTION RATES. Construction rates
shall be as follows:
A. Water used on construction jobs shall be metered
and the cost shall be one and one -half times that set
forth under the general rates cost;
B. Upon application for service a charge of twenty -
five dollars shall be made for the initial meter
installation and an additional charge of twenty -five
dollars shall be made for each meter relocation;
C. A returnable deposit of two hundred dollars for
each meter must be made upon application for service,
which deposit shall secure the payment to the City of
any damage suffered and of charges for water served and
which has not otherwise been paid.
SECTION 7. UNMETERED WATER RATES. For water used
through an unmetered City fire hydrant, a charge shall be made to
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cover the cost of the water used and employees' wages. The
• charge shall be $30 for turning the hydrant on and off and the
first ten minutes of flow. An additional charge of one dollar
shall be made for each minute after the initial ten minutes. Any
use of water from a fire hydrant other than by the City shall be
subject to the foregoing charge.
SECTION 8. PASS THROUGH OF ADDED COSTS REASONABLY
• BORNE. The City Manager, Finance Director, and Public Works
Director are hereby directed and authorized to adjust the water
rate schedule as necessary and to so adjust rates at whatever
times and frequencies as are appropriate in their judgment so as
to reflect increases or decreases in the following major and
locally uncontrollable externally - determined costs reasonably
borne incurred by the City Water Utility System:
A. Water purchases from the Metropolitan Water Dis-
trict of Southern California.
B. Electric power purchases.
C. Water treatment chemical purchases.
SECTION 9. EFFECTIVE DATE. This Resolution shall
become effective immediately, provided however, that the initial
rate schedule set out in Section 2 hereof shall apply to all
bills issued on or after August 1, 1986.
SECTION 10. REPEALER. All resolutions or parts of
resolutions of the City Council of the City of E1 Segundo,
California in conflict in whole or in part herewith are hereby
repealed.
SECTION 11. CERTIFICATION. The City Clerk shall cer-
tify to the passage and adoption of this resolution; shall enter
the same in the book of original resolutions of said City; and
shall make a minute of the passage and adoption thereof in the
records of the proceedings of the City Council of said City, in
the minutes of the meeting at which the same is passed and
adopted.
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1986.
(SEAL)
PASSED, APPROVED AND ADOPTED this 1st day of July ,
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California
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
CITY OF EL SEGUNDO )
E
SS
I, Ronald L. Hart , City Clerk of the
City of El Segundo, California, DO HEREBY CERTIFY that the whole
number of members of the City Council of the said City is five;
that the foregoing resolution, being Resolution No. 3397 was
duly passed and adopted by the said City Council, approved and
signed by the Mayor of said City, and attested by the City Clerk
of said City, all at a regular meeting of the said Council held
on the 1st day of July , 19 86
and that the same was so passed and adopted by the following
vote:
AYES: Councilmembers Anderson, Jacobson, Schuldt,
West, & Mayor Siadek
NOES: Councilmembers None
ABSENT: Councilmembers None
WITNESS MY HAND AND THE OFFICIAL SEAL OF SAID CITY
i
this 9th day of July 19 86 .
rAty Clerk of the
City of El Segundo, California
(SEAL)