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2003-22 ESD Sewer Service Fee . . . . . 8 . . . . . . . . 8 . . 8 . . 8 . ORDINANCE NO. 2003-22 AN UNCODIFIED ORDINANCE OF THE CITY OF ENCINIT AS CORRECTING SEWER SERVICE CHARGE RATE STRUCTURE FOR ENCINIT AS SANITARY DIVISION RESIDENTIAL AND COMMERCIAL USERS WHEREAS, 18.08.030 authorizes the City Council of the City of Encinitas to establish sewer service charges by ordinance; and WHEREAS, the City Council of the City of Encinitas conducted a noticed public hearing on December 17,2003 to consider an uncodified ordinance adopting sewer service charges; and WHEREAS, such hearing was duly and regularly convened at the council chambers of the City of Encinitas and at said hearing all interested persons were given an opportunity to be heard; and WHEREAS, the City Council of the City of Encinitas finds that it is in the best interests of the City to revise its sewer service charges. . NOW THEREFORE, the City Council of the City of Encinitas, California, does ordain as follows: SECTION ONE: That the sewer service charges for the Encinitas Sanitary Division be re-calculated, effective July 1, 2004, utilizing the fixed meter charge and the commodity rate for each year listed in Exhibit "A" entitled "Rate Schedule for Annual Sewer Service Charges" and the adopted formula, as set forth in Exhibit "B" entitled "Formula for Calculating Sewer Service Charges" which are attached hereto. SECTION TWO: That the adopted fixed meter charge and the commodity rates may be adjusted administratively, based on the criteria and standards set forth in Exhibit "c" entitled "Revisions to Fixed Meter Charges and Commodity Rates" which is attached hereto, and referencing Exhibit "D" entitled" 1 0 Year Financial Plan" which is attached hereto. SECTION THREE: This ordinance was introduced on December 17,2003. 8 - . SECTION FOUR: The City Clerk is directed to prepare and have published a summary of this ordinance together with the votes cast no less than five days prior to the consideration of its adoption and again within 15 days following adoption, indicating votes cast. PASSED AND ADOPTED this 14 day of Jan. , 2004, by the following vote, to wit: AYES: Bond, Dalager, Guerin, Houlihan, Stocks. NAYS: None. ABSTAIN: None. ABSENT: None. ~/ '/'/; /' . " ,,[,.t i ~,¿, ,,/¿ /' 7 ' ~) Maggi oulihan, Mayor of the City of Encinitas, California ATTEST AND CERTIFICATION: I hereby certify this is a true and correct copy of City of Encinitas Ordinance No. 2003- 22, which has been published pursuant to law. ~1 G lVALÁA-Â 'hA Deborah Cervone, City Clerk ~ 8 - ~ . ~ Q Q ~ ~~~~~~ ~~ ~M~ ~ ~ ~ ~N~~~~ "~~~ ~ MI ,- M M~~~~N ~ ~~ ~~~ ~ r~" Õ ¿ - N ~ ¿ ~ ~ N...., ...., U ø Z f"tW1 N NM~O~~ ~ ~ ~ ~~~~~~ ~~ ~~~ ~ -< ~I ,- -;!., -;!.,;;;;2¡:::¡:::!~ ~ ~~ ~~~ Z ~ 0 ¿ -N~ ¿ ~ N...., ...., ~ U ~ N NM~O~~ ~ ~ 0 OOO--N ~~ ~~O ~ U -/ ,- ~ ~ ~ ;çj R ¡::! ~ ~: : ~ ;;; ;: 0 õ ¿ -N~ ¿ ~ Z N...., ...., 0 ~ 0 ~ ......O~~....- ~ ~ ~ ~~~M~~ ~~ ~~~ ~ r~" ~ 01 ,- ~ ~ ~ ~ Œ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ õ ¿ -N~ ¿ ~ rJJ~ N...., ...., ~ f"tW1 > ...-¡ ~ ~ ~ - ~ ~~~~~~ ,...., ~ r-; r-;~Mr-;~rr¡ ~~ ~-;!.,~ ~ ~ ~ ~ ~I :::: ~ ~~~~~~ ~ ~~ ~~~ ~ :> >-......, .... 8 ~ -N~ ¿ ~ ~ ~ íJ N ...., ...., ~ ~ ~ 5 ~ r~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r~" ~~ ~:= r-; r-;~~r-;~~ ~~ ~~;;; ~ ~ ~ ¡.. ~I ,- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8 ¿ -N~ ¿ -< Z ~ N ...., ...., ~ -< ~ N N~OO~- Z ~ ~ ~~M~-~ NN OM~ ~ '""" MM ~ON Z rJJ >o,¡ ~I ,- g g ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .... 8 ¿ -N~ ¿ ~rJJ ~ N ...., ...., oi ~ -< ~ ~ f"tW1 ~ U ~ ~-~-MN jg ~ ~ ~ ~ ~~~~~~ ~~ ~~~ u 0 ~ .... ~I ,- g) g)~["!:~;::;~ ~ ~~ ~~~ B Z 0 ~ -N~ -= '" ~. ~ ¡;;¡ ¡;;¡ E ~~ ~ ~ U M M~N~M~ ~ Z - -~~~o~ ~~ ~~~ ~ ' """ MM ~ON ~ ~MN~M~ "", ~ ~ ~ ~I:::: N N~~~MM ~ MM M~~ '" f--.., ~ 8 ~ -N~ ¿ ~ ~ N...., ...., ~ ~ ~ ~ ~ ,- = - ~ U co '" <::: E = 0 rJJ ~ ~ ~ ':;; ¡;; u ~ '-' ~~ ~ , ~ ....~~- 'NM - -> ~ .... '" ~ M - >, co - - ,- ~ >, ~ :::b ";::::::::= E :: E'- ="""'" ,~ '" ..:::8 '" ¡::: '-' ,- ,- ,- ~ ~ ¡;; ~ -; ¡;; ~ i:: i:: i:: ".!. co ~ ";:: ¡..¡. ¡..¡. .:;; '" '" '" .::: ¡.¡. -= =2,.0 '-'EEE ;:! 2 0.... ~ gp:; :::;: E E E = !OJ) '-'-:::8 = 000 :::: ,:: = ::¡~ cUUU <: '" ~ ¡:¡:: z: * 8 - - . ]~~ ~ ~~õ ~ 00 Q ~ II Q r~ ~ N ~ ~~ ~ ~ ~.2 U ~ ~u ~ æ Z ~ + < U ~ Z ~ & ~ U ~ ~ > ~ ~ ~ ~h 0 ~ ~~~ ~ ~ II = ~ ~ ~ ~ ~ ~ ~ ~ 00 - ~ = . =~~ ~ ~ -¡g§b ê~æ ~ Z ¡S~::r: ~~Õ ~ ~ ~ ~ ~ II 1/-< < ~ ~ ~ ~ >< * ~ Z ~ "0 ¿ ~ ~ ¡:: en = N~O/) "O,..¡:: U U ~ ~ .5 ~ U ~ ¡::: 0 --g .- r~'" ~ ~~~ ~ ~ < -< + ~ U + ~ - E ~ ~ ~ ~ =:>- ~ uE,5 ~ ~ ~ 0 ~ i$ "g ~ r~'" = ~j~ U ~ ~ ~ .< c:G ~ :r: rJl 0'\ -< 0 = II < H¿¡¡h ~ ~ l'-<~:;! ~ j--gCC:æ§. L""" Z QO~ ~ ~ ]~~r.E~æ Z ~ N II~ ~ -< N~~;;:;5~ ~ ~ ~,..;¡z ~ ~ ]~B~2<A ~ 2 <~ ~ ~"::::'-"'::::,,,::: L""" ~~ Z rJl:X: ~ ~~ E~I~.£"O ~ ~ ~ N zoo 0 ~ ~¡::~Q--§O N ~"':;:: ~ ~~ ~ j ] ~ : :æ '§ ~ õ gf 5. ,,~ ~ ~ ~ -~U<2~ ~ ¿:a--< ~ I . rJl.£J ~ ï ;;:; 1:: ~ ~ ~ = >-. rJl 00 Z ~ ]~B~~<A 0 õ~~ ~ ~O ~ ~"::::,-,,,::::~ Z E-< 6 ~ ~z - - . REVISIONS TO FIXED METER CHARGES AND COMMODITY RATES The City Council authorizes the City Manager, or his/her designee, to adjust the fixed meter charges and/or commodity rates pursuant to the formulas and restrictions set forth herein, The City Manager may delegate the authority to make said adjustments from time to time and may change the designee from time to time. As of the date of this Ordinance, the City Manager has named the Public Works Director as the designee who will have the authority to make any adjustments, subject to the approval of the City Manager. Therefore, the Public Works Director shall have the authority to make adjustments in the fixed meter charges and/or commodity rates pursuant to the following restrictions: 1. The costs and cost increases which may trigger the need to adjust the charges and rates are set forth in Sections lea) and 2(a) below; and 2, The need for a rate adjustment shall be based solely upon the costs and cost increases set forth in Sections lea) and 2(a) below; and 3. The cost increases shall be allocated between fixed and commodity rates and among various types of customers, pursuant to the formulas set forth in Sections I (a) and 2(a) below; and 4. The maximum rate increase in either or both the fixed rate and commodity rate in any year is limited to ten (I 0) percent. 5. In any fiscal year that an adjustment is to be made, the Public Works Director shall develop a . new rate chart showing the updated fixed charge and commodity rate for the current fiscal year, the next fiscal year, and any subsequent adjustments that have been made to the future rates; and 6. In any fiscal year that an adjustment is made, the Public Works Director shall report those modifications prior to implementation in an informational report to the City Council at a regular meeting no later than May I sl of any year that a modification has been determined to be administratively necessary, Council retains the right to affirm or deny the proposed administrative rate changes, The Public Works Director shall have the authority to make adjustments in the fixed meter charges and/or the commodity rates based on the following formulas: I. (a) If in any particular fiscal year, the annual increase in operations and maintenance and/or capital costs of the Encina Wastewater Authority exceed the levels projected for that particular year of the ten year financial plan which anticipates an annual increased cost of four percent (4%) included in the Encinitas Sanitary Division Cost of Sewer Service Review, dated December 2003, the fixed meter charges and commodity rates for the future year(s) shall be adjusted to recover the pass-through cost amounts in excess of that 4% annual increase. Any or all of said excess amounts may be recovered in the fiscal year during which the increased costs are incurred if the Public Works Director determines that there is sufficient time to calculate the adjusted rates and submit them to the County for collection on the tax rolls, Formula: If the pass-through cost in excess of 4 % is attributable to debt service, then that increase shall be applied to the fixed charge. Costs attributable to debt service . include those specific amounts that are charged based on bonds, notes or other evidences of indebtedness ("Bonded Indebtedness") which include but are not limited to, the cost of EXHIBIT C TO ORDINANCE 2003-22 . - . bond issuance, bond reserves, actual payments made as part of the Bonded Indebtedness being issued, commonly referred to as debt service. If the pass-through cost in excess of 4% is applied to a variable cost or cost other than debt service or Bonded Indebtedness, the increase shall be applied to the commodity charge. Variable costs, and costs other than debt service, include but are not limited to, the cost of personnel and related expenses attributable to health Insurance, pensIon or other benefit costs, cash expenditures made for required capital projects and cash expenditures made for equipment such as pumps and/or vehicles, The pass-through cost shall be apportioned utilizing the same proportionality in existence between customer classes unless the cost increase is specific to a particular class of customer. The classes of customers for which adjustments may be applicable are residential and non-residential. 2. (a) If in any particular fiscal year, the projected year-end fund balance in the Rate Stabilization fund falls below $800,000 and/or the projected year-end fund balance in the Capital Replacement reserve falls below $2,500,000; the fixed meter charges and/or commodity rates for the future year(s) shall be adjusted to replenish the fund(s) to the amounts projected in the 10 year financial plan adopted by the City Council. Any or all of said amounts may be recovered in the fiscal year during which the applicable fund balance falls below the required level if the Public Works Director determines that there is sufficient time to calculate the adjusted rates and submit them to the County for collection on the tax rolls. For example, and not by way of limitation, the projected year- end fund balance in the applicable fund may fall below the required level due to a catastrophic event requiring: (i) immediate funding that was unanticipated; and (ii) reserves to be drawn upon; and (iii) replenishment of said funds, . Formula: If the need for replenishment of the reserve is attributable to debt service, then that increase shall be applied to the fixed meter charge, Costs attributable to debt service include those specific amounts that are charged based on bonds, notes or other evidences of indebtedness ("Bonded Indebtedness") which include but are not limited to, the cost of bond issuance, bond reserves, actual payments made as part of the Bonded Indebtedness being issued, commonly referred to as debt service. If the need for reimbursement cost is attributable to a variable cost or a cost other than debt service or Bonded Indebtedness, the increase shall be applied to the commodity charge. 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