HomeMy WebLinkAbout2007-04-03; City Council; 18950; Public Hearing Past Increases Water Sewer Trash FeesCITY OF CARLSBAD AND CARLSBAD MUNICIPAL WATER
DISTRICT - AGENDA BILL
AB# 18,950
MTG. 4/3/07
DEPT. FIN
PUBLIC HEARING FOR PAST
INCREASES FOR WATER, SEWER AND
TD A OI_f r"F"f"OTRASH FccS
DEPT. HEAD
CITY ATTY. (&&
CITY MGR. Jg^
RECOMMENDED ACTION:
Conduct a public hearing to receive public comment and adopt Resolutions No. 1294
and No. 2007-071 ratifying past increases for water, sewer and trash fees for properties
within the Carlsbad Municipal Water District and the City of Carlsbad, so long as there is not a
majority protest.
ITEM EXPLANATION:
The California Supreme Court recently ruled that local governments must hold a public hearing
before raising any water, sewer or trash fees. Customers must be notified forty-five (45) days in
advance of the hearing of the proposed fee changes, as required by California Constitution
Article XIIID and the Proposition 218 Omnibus Implementation Act (Government Code Section
53753 et. seq.). Therefore, although the City is not proposing any new fee increases, a
majority-protest public hearing should be held to ratify any increases over the past three years.
The public hearing is to be held forty-five (45) days after noticing the ratepayers. Any person
interested in objecting to the increases may file a signed written protest with the City Clerk. The
written protest must contain the address of service, the fee change being protested, the
grounds of protest, and received prior to the close of the public hearing. The protestor may
appear at the hearing and be heard on the matter.
At their meeting on February 6, 2007, the Board of Directors of the Carlsbad Municipal Water
District and the City Council adopted Resolution No. 1289 and Resolution No. 2007-025 setting
a public hearing on April 3, 2007 to accept public comment on past water, sewer and trash fee
increases.
Staff has taken the following actions at least 45 days prior to this hearing:
• Affected utility customers were notified by mail of the public hearing.
• Notification of this hearing was published in the North County Times more than 45
days prior to the hearing.
DEPARTMENT CONTACT: Colette Wengenroth 760-602-2430 cweng(g)ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D^D
Dnn
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
D
D
D
D
Page 2
• The notice (see Exhibit 1) outlined fee changes that have occurred in December 2003,
August 2005, and August 2006.
• The notice outlined the protest process.
• The notice provided information relating to the public hearing.
As of March 30, 2007 no protests have been received. If there is no majority protest, staff is
recommending that the Board of Directors and City Council, after hearing public comment,
ratify these increases.
FISCAL IMPACT:
There is no fiscal impact in ratifying the past water, sewer and trash increases.
ENVIRONMENTAL IMPACT:
The California Environmental Quality Act (CEQA) does not apply to the establishment or
modification of fees for the purpose of meeting operating expenses (CEQA Guidelines
Regulation 15273).
EXHIBITS:
1. Notice of Public Hearing.
2. Resolution No. 1294 of the Board of Directors of the Carlsbad Municipal Water
District ratifying water fee increases.
3. Resolution No. 2007-071 of the City Council of the City of Carlsbad ratifying sewer
and trash fee increases.
Exhibit 1
Notice of Public Hearing
City of Carlsbad and
Carlsbad Municipal Water District
Utility Customers
Dear City of Carlsbad and Carlsbad Municipal Water District Utility Customer:
NOTICE IS HEREBY GIVEN that the City Council and Board of Directors will
hold a public hearing regarding past increases for water, sewer, and trash fees
for properties within the City of Carlsbad and Carlsbad Municipal Water District.
This hearing is to comply with a ruling of the California Supreme Court. No new
increases are being proposed.
The public hearing will be held on the 3rd of April, 2007 at 6:00 p.m., in the
Council Chambers, City Hall, 1200 Carlsbad Village Drive, Carlsbad, California,
at which time the Council will hear all persons interested in the matter.
Any person interested in objecting to the amount of the past increases may file
a signed written protest with the City Clerk, at or before the hour fixed for the
hearing. The written protest must contain the address of service, the rate change
being protested, and the ground or grounds of protest. The protestor may appear
at the hearing and be heard on the matter.
How Do We Compare to Other Cities?
Water Rate Comparison per 20 Units Sewer Flat Fee Rate Comparison
Del Mar
Row ay
San Diego
Rainbow
Valley Center
Ramona
OceanskJe
VaBecitos
Otivenhain
Carlsbad
Otay
$30 $40 $50 S60 $70 $80
Del Mar
Buena
Olivenhain
Vista
Solana Beach
Encinitas
Oceanskte
Vallecitos
Leucadia
Carlsbad
Raway
Exhibit 1
Prior to the increases, the water and sewer fees had not changed since July
1999. As reflected on the previous page, even with these increases, the City's
rates continue to be among the lowest in the region. The City has been able to
hold off rate increases with effective cost management. However, due to rising
operating costs, the increased cost of water purchased from the San Diego
County Water Authority, and increased costs from the Encina Wastewater
Authority, the City needed to raise the rates.
Below is a summary of the fee increases already implemented that are the
subject of this hearing:
Monthly water service fees increased 5% in August 2006.
• The standard rates increased from $1.60 to $1.68.
• The conservation rate increased from $1.44 to $1.51.
• The recycled water rate increased from $1.52 to $1.60.
• The agricultural water rate increased from $1.29 to $1.37
Both residential and commercial monthly sewer service fees increased 8.5% in
August 2006.
• The residential fee increased from $13.50 to $14.65.
• The commercial fee increased 8.5%.
Residential monthly trash fees increased in August 2005 by 6%.
• The residential fee increased from $16.47 to $17.50.
Both residential and commercial monthly sewer service fees increased in August
2005.
• The residential monthly sewer service fee increased from $13.00 to
$13.50.
• The commercial sewer service fee increased 4%.
Residential monthly trash fees increased in December 2003 by 6%.
• The residential fee increased from $14.52 to $16.47.
A detailed schedule of our water and sewer utility rates is attached.
For questions about the public hearing process,
please contact tbe Finance Department's Customer Service Dept.
at (Z6O) 6O2-24O3
Exhibit 1
CITY OF CARLSBAD AND CARLSBAD MUNICIPAL WATER DISTRICT
RATES & CHARGES AS OF 7/31/2006
Commodity Rates
Meter Size
Current
Conservation Rate'Units/Mo.
(or less)
5% Adjustment
Conservation Rate Units/Mo.
(or less)
5/8"$1.44 $1.51
3/4"$1.44 10 $1.51 10
$1.44 16 $1.51 16
1-1/2"$1.44
$1.44 45
$1.51
$1.51
30
45
$1.44 79 $1.51 79
4"$1.44 123 $1.51 123
$1.44 228 $1.51 228
8"$1.44 336 $1.51 336
' Conservation Rale is 90 percent of Standard (Base) Rate.
' Recycled Water Rate is 96 percent o( Standard (Base) Rale.
' Agricultural Water Rate is S0.31 otf the Standard (Base) Rate (per the MWD "Interim Agricultural Water Program").
Monthly Delivery Charges
Meter Size
5/8"
3/4"
1"
1-1/2"
2"
3"
4"
6"
8"
Current
$9.25
$11.75
$16.75
$29.25
$44.25
$79.50
$129.50
$254.50
$404.50
5% Adjustment
$9.75
$12.35
$17.60
$30.70
$45.45
$83.45
$136.00
$267.25
$424.75
Wastewater (Sewer) Rates
User Category
Group 1 Residential
Single Family
Multi-Family'
Mobile Home1
Group II Commercial "
Group III Commercial '
Group IV Commercial *
Group V Institutional
Schools per ADA3
Elementary
Junior
High
Boarding
Group VI Large Volume
Current
Unit Cost
($/hcf of water)
$1.92
$1.92
$1.59
$2.09
$3.30
$021*
$0.41*
$0.61*
$3.04*
(based on volume and
wastewater strengths)
Uniform Rate
$13.50
...
...
8.5% Adjustment
Unit Cost
($/hcf of water)
$2.08
$2.08
$1.73
$2.27
$3.58
$0.23*
$0.44*
$0.66*
$3.30*
(based on volume and
wastewater strengths)
Uniform Rate
$14.65
...
...
1 Wastewater flow is 90 percent of metered water use.2 Non-residential wastewaier How is 95 percent ol matured water use.3 Schools: assumes a 200-day working year. ADA: average daily attendance.
* Denotes charge per student based on ADA.
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RESOLUTION NO. 1294
A RESOLUTION OF THE BOARD OF DIRECTORS OF
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), TO
RATIFY PAST INCREASES IN WATER FEES.
Exhibit 2
WHEREAS, the California Supreme Court recently made a ruling that local
governments must hold a public majority-protest hearing, and notify customers forty-five
(45) days in advance of increases in water fees; and
WHEREAS, on February 6, 2007, The Board approved Resolution No. 1289
setting a public hearing for April 3, 2007; and
WHEREAS a public hearing was held on April 3, 2007; and
WHEREAS, the Carlsbad Municipal Water District increased water
August 2006.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors
Carlsbad Municipal Water District, as follows:
1 . That the above recitations are true and correct.
2. That the Board of Directors of the Carlsbad Municipal Water
ratifies past increases in water fees.
n
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fees in
of the
District
It
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council,
held on the 3rd day of April, 2007, by the following vote:
AYES: Board Members Lewis, Kulchin, Hall, Packard
NOES: None
ABSENT: None
CtAUDE A CEWISs President
ATTEST:
LORRAINE M. WOOD, Secretary
(SEAL)
Exhibits
1 RESOLUTION NO. 2007-071
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO RATIFY PAST INCREASES
3 IN SEWER AND TRASH FEES.
4
5 WHEREAS, the California Supreme Court recently made a ruling that local
6 governments must hold a public majority-protest hearing, and notify customers forty-five
7 (45) days in advance of increases in sewer and trash fees; and
8 WHEREAS, on February 6, 2007, City Council approved Resolution No. 2007-
9 025 setting a public hearing for April 3, 2007; and
10
WHEREAS a public hearing was held on April 3, 2007; and
11
WHEREAS, the City of Carlsbad increased sewer fees in August 2006 and
12
August 2005; and
14 WHEREAS, the City of Carlsbad increased trash fees in August 2005 and
15 December 2003.
16 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
17 Carlsbad, California, as follows:
18 1. That the above recitations are true and correct.
19
2. That the City Council of the City of Carlsbad ratifies past increases in
20
sewer and trash fees.
21 "
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council and Carlsbad Municipal Water District Board of Directors held on
the 3rd day of April, 2007, by the following vote:
AYES: Council Members Lewis, Kulchin, Hall, Packard
NOES: None
ABSENT: None
CLAUDE A LEWISY Mayor
ATTEST:
LORRAINE M. WOOD, Secretary
(SEAL)
The Coast News
Decreed A Legal Newspaper by the Superior Court
of San Diego County.
Mail all correspondence regarding public
notice advertising to
The Coast News, P.O. Box 232-550,
Encinitas, CA 92023 (760) 436-9737
Proof of Publication
STATE OF CALIFORNIA, ss
COUNTY OF SAN DIEGO,
I am a citizen of the United States and a resident of the
county aforesaid;
I am over the age of eighteen years, and not a party to or
interested in the above entitled matter.
I am principal clerk of the printer of The Coast News, a
newspaper printed and published weekly and which news-
paper has been adjudged a newspaper of general circulation
for the cities of Del Mar, Solana Beach, Encinitas/Cardiff,
Carlsbad, Oceanside, San Marcos/Vista and the County
Judicial District by the Superior Court of the State of
California, County of San Diego (8/4/94, #677114, B2393,
P396); and that the notice, of which the annexed is a print-
ed copy, has been published in, each regular and entire issue
of said newspaper and not in any supplement thereof on the
following dates, to-wit:
Feb. 16th. 2007
I certify under penalty of perjury that the
foregoing is true and correct. Executed at
Encinitas, County of San Diego, State of
California on the^6tb>^ of February, 2007.
Clerk of the Printer
Space above for County Clerk's Filing Stamp
Both residential and commercial monthly sewer service fees increased in
August 2005.
• The residential monthly sewer service fee increased from $13.00 to $13.50..
•The commercial sewer service fee increased 4%.
Residential monthly trash fees increased in December 28O3 by e%.
• The residential fee increased from $14.52 to $16.47.
A detailed schedule of our water and sewer utility rates is included herewith.
For questions about the public hearing process, please contact the
Finance Department's Customer Service DepL at (760) 602-2403
CN4017,Feb. 16,2007
The Coast News
Decreed A Legal Newspaper by the Superior Court
of San Diego County.
Mail all correspondence regarding public
notice advertising to
The Coast News, P.O. Box 232-550,
Encinitas, CA 92023 (760) 436-9737
Proof of Publication
STATE OF CALIFORNIA, ss.
COUNTY OF SAN DIEGO,
I am a citizen of the United States and a resident of the
county aforesaid;
I am over the age of eighteen years, and not a party to or
interested in the above entitled matter.
I am principal clerk of the printer of The Coast News, a
newspaper printed and published weekly and which news-
paper has been adjudged a newspaper of general circulation
for the cities of Del Mar, Solana Beach, Encinitas/Cardiff,
Carlsbad, Oceanside, San Marcos/Vista and the County
Judicial District by the Superior Court of the State of
California, County of San Diego (8/4/94, #677114, B2393,
P396); and that the notice, of which the annexed is a print-
ed copy, has been published in, each regular and entire issue
of said newspaper and not in any supplement thereof on the
following dates, to-wit:
Feb. 16th. 2007
I certify under penalty of perjury that the
foregoing is true and correct. Executed at
Encinitas, County of San Diego, State of
California on the>i6>h^y of February, 2007.
Clerk of the Printer
Space above for County Clerk's Filing Stamp
NOTICE OF PUBLIC HEARING
CITY OF CARLSBAD AND CARLSBAD
MUNICIPAL WATER DISTRICT UTILITY
CUSTOMERS
NOTICE IS HEREBY GIVEN that the City Council and Board of Directors will
hold a public hearing regarding past increases for water, sewer, and trash fees
for properties within the City of Carlsbad and Carlsbad Municipal Water
District. This hearing is to comply with a ruling of the California Supreme Court.
No new increases are being proposed.
The public hearing will be held on the 3rd of April, 2007 at 6:00 p.m., in the
Council Chambers, City Hall, 1200 Carlsbad Village Drive, Carlsbad,
California, at which time the Council will hear all persons interested in the mat-
ter.
Any person interested in objecting to the amount of the past increases may file
a signed written protest with the City Clerk, at or before the hour fixed for the
hearing. The written protest must contain the address of service, the rate
change being protested, and the ground or grounds of protest. The protestor
may appear at the hearing and be heard on the matter.
How Do We Compare to Other Cities?
Watet Rate Comparison per 20 Unit*Smw Hat FM Rats Companion
OHM*
fewftv
SvtO*go
Prior to the increases, the water and sewer fees had not changed since July
1999. As reflected on the previous page, even with these increases, the City's
rates continue to be among the lowest in the region. The City has been able
to hold off rate increases with effective cost management. However, due to ris-
ing operating costs, the increased cost of water purchased from the San Diego
County Water Authority, and increased costs from the Encina Wastewater
Authority, the City needed to raise the rates.
Below is a summary of the fee Increases already Implemented that are
the subject of this hearing:
Monthly water service fees increased 5% in August 2006.
• The standard rates increased from $1.60 to $1.66.
• The conservation rate increased from $1.44 to $1.51.
• The recycled water rate increased from $1.52 to $1.60.
• The agricultural water rate increased from $1.29 to $1.37
Both residential and commercial monthly sewer service fees increased 8.5%
in August 2006.
• The residential fee increased from $13.50 to $14.65.
• The commercial fee increased 8.5%.
Residential monthly trash fees increased in August 2005 by 6%. .
• The residential fee increased from $16.47 to $17.50.
ProtestProtestPublic HearingPublic HearingCity of CarlsbadCity of CarlsbadCarlsbad Municipal Water Carlsbad Municipal Water DistrictDistrict
Supreme Court Ruling Supreme Court Ruling ––BighornBighornUtility rates are subject to Prop 218Utility rates are subject to Prop 218Public hearing must be heldPublic hearing must be held45 day written notice prior to public hearing45 day written notice prior to public hearingPrevious Previous utility fees have been set utility fees have been set during the budget processduring the budget processBackgroundBackground
RRate Historyate HistoryAugust 2006August 2006Water rates increasedWater rates increasedSewer rates increasedSewer rates increasedAugust 2005August 2005Trash rates increasedTrash rates increasedSewer rates increasedSewer rates increasedDecember 2003December 2003Trash rates increasedTrash rates increased
Rate Rate History (cont.)History (cont.)6.2%$1.29$1.37Agricultural5.3%$1.52$1.60Recycled5.0%$1.60$1.68Standard 4.9%$1.44$1.51Conservation% ChangeNo rate increase since 1999July 1999August 2006ServiceWater Commodity Rates
Rate Rate History (cont.)History (cont.)4.0%Varies8.5%VariesCommercial3.8%$13.00$13.508.5%$13.50$14.65Residential% ChangeJuly 1999August 2005% ChangeAugust 2005August 2006ServiceSewer Rates1.8%$13.26$13.506.3%$16.47$17.50Residential% ChangeJune 1996December 2003% ChangeDecember 2003August 2005ServiceSolid Waste/Storm Water Rates
How Do We Compare to How Do We Compare to Other Cities?Other Cities?As of June 2006$30 $40 $50 $60 $70 $80OtayCarlsbadOlivenhainVallecitosOceansideRamonaValley CenterRainbowSan DiegoPow ayDel MarWater Rate Comparison per 20 Units
How Do We Compare to How Do We Compare to Other Cities?Other Cities?As of June 2006$- $10 $20 $30 $40 $50Pow ayCarlsbadLeucadiaVallecitosOceansideEncinitasSolana BeachVistaOlivenhainBuenaDel MarSewer Flat Fee Rate Comparison
WWater Operationsater OperationsPurchased Water Cost per Acre Foot$300$350$400$450$500$550$60020032004200520062007Calendar YearDollars
WWater Operations ater Operations (cont.)(cont.)$-$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0001999 2000 2001 2002 2003 2004 2005 2006Fiscal YearWater Operations - Cost of Operations and Purchased Water from San Diego County Water Authority City OperationsPurchased Water
SewerSewerOperationsOperationsEncina Operations-500,0001,000,0001,500,0002,000,0002,500,0003,000,0001997199819992000200120022003200420052006Encina Operations
SewerSewerOperations (cont.)Operations (cont.)02,000,0004,000,0006,000,0008,000,000D o llars2002 2003 2004 2005 2006 2007(est)Fiscal YearSewer Operations - ExpendituresReplacement FundingPersonnel/M&OEncina Charges
Public HearingPublic Hearing
Questions?Questions?
Action ItemsAction ItemsCarlsbad Municipal Water Board:Carlsbad Municipal Water Board:Resolution 1294 ratifying past Resolution 1294 ratifying past water rate increases.water rate increases.City Council:City Council:Resolution 2007Resolution 2007--071 ratifying past 071 ratifying past sewer and trash increases.sewer and trash increases.
ProtestProtestPublic HearingPublic HearingCity of CarlsbadCity of CarlsbadCarlsbad Municipal Water Carlsbad Municipal Water DistrictDistrict
WWater Operationsater OperationsWater Operations Revenues & Expenses15,000,00020,000,00025,000,00030,000,00020022003200420052006 2007 (est)Fiscal YearDollarsRevenuesExpenses