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Record No: CB 119050    Version: Council Bill No: CB 119050
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
Final Action: 11/17/2017
Ordinance No: Ord 125444
Title: AN ORDINANCE relating to rates and charges for water services of Seattle Public Utilities; authorizing withdrawals from the Water Fund Revenue Stabilization Subfund; revising water rates and charges, and credits to low-income customers; and amending Seattle Municipal Code Sections 21.04.430, 21.04.440, and 21.76.040.
Sponsors: Lisa Herbold
Supporting documents: 1. Proposed Substitute, 2. Summary and Fiscal Note, 3. Summary Att 1 - 2018-20 Water Rate Study, 4. Central Staff Memo, 5. Signed Ord_125444

CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

title

AN ORDINANCE relating to rates and charges for water services of Seattle Public Utilities; authorizing withdrawals from the Water Fund Revenue Stabilization Subfund; revising water rates and charges, and credits to low-income customers; and amending Seattle Municipal Code Sections 21.04.430, 21.04.440, and 21.76.040.

body

WHEREAS, the City Council has adopted a six-year Strategic Business Plan which guides utility investments, service levels, and rate paths through 2023; and

WHEREAS, the adopted 2018-2023 Strategic Business Plan includes increases in the capital and operating requirements of the Water Fund in response to environmental and infrastructure concerns, with a resulting increase in revenue requirements; and

WHEREAS, Ordinance 121761, passed on March 28, 2005, established a minimum balance for the Water Fund Revenue Stabilization Subfund of $9,000,000, and permits funds in excess of this amount to be used to meet operating expenses, pay Capital Improvement Program expenditures, or to comply with financial policies; and

WHEREAS, the current balance in the Water Fund Revenue Stabilization Subfund exceeds the minimum balance, and the adopted Strategic Business Plan directs that a portion of the excess funds be withdrawn to reduce the Water Fund revenue requirement and thereby reduce otherwise necessary increases in water rates; and

WHEREAS, SPU has recently completed a rate study incorporating guidance of the adopted Strategic Business Plan; and

WHEREAS, the water rates authorized by this ordinance are consistent with the general rate-making policies set forth in Resolution 30742, adopted March 28, 2005; and

WHEREAS, credits for qualified low-income customers should be revised when water rates change; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. In order to lessen the increases in water rates necessary to meet the revenue requirements of the Water Fund, the General Manager/Chief Executive Officer (GM/CEO) of Seattle Public Utilities is authorized, while the rates authorized by this ordinance are in effect, to make one or more withdrawals of funds up to a cumulative maximum of $19,000,000 from the Revenue Stabilization Subfund to Operating Cash. The GM/CEO may withdraw funds in order to meet operating expenses, pay Capital Improvement Program expenditures, or comply with the Water Fund financial policies adopted by the City Council, so long as the balance of the Revenue Stabilization Subfund never falls below $14,700,000.

Section 2. Section 21.04.430 of the Seattle Municipal Code, last amended by Ordinance 124765, is amended as follows:

21.04.430 Rates inside The City of Seattle ((.))

All water used inside the City for domestic and commercial purposes shall be supplied by meter only at the following rates and charges. Seasonal rates shall be prorated. For usage representing fractional parts of a month, the base service charge and all components of the commodity charge shall be prorated using a 30-day month. The additional cost of funding the Revenue Stabilization ((SubFund)) Subfund shall be specifically indicated in the billings. Seattle Public Utilities shall continue to incorporate arts funding into its capital projects constructed within the municipal boundaries of the City at the one percent level; ((,)) however, the department shall not be permitted to fund any such program from the Water Fund on any capital project outside the City limits.

A.                     Residential. The rates for metered water supplied to single-family and duplex residences within the City in one month, or fractional part thereof, shall be based on a commodity charge and a base service charge, in accordance with the following schedules:

Schedule WIR. Schedule WIR is for all single-family and duplex residences within the City except those billed on Schedule WIRM.

Commodity Charge ((Per)) per 100 Cubic Feet

 

((Effective January 1, 2014

Effective January 1, 2016))

Effective January 1, 2017

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Summer (May 16th-September 15th)

First 500 cubic feet per residence

(($5.13

$5.20))

$5.29

(($5.40 $5.33

$5.53 $5.41

$5.68)) $5.55

Next 1,300 cubic feet per residence

(($6.34

$6.43))

$6.54

(($6.68 $6.59

$6.82 $6.69

$7.01)) $6.86

All over 1,800 cubic feet per residence

(($11.80

$11.80))

$11.80

$11.80

$11.80

$11.80

Winter (September 16th-May 15th)

All usage

(($4.99

$5.06))

$5.15

(($5.25 $5.20

$5.37 $5.27

$5.53)) $5.40

Base Service Charge ((Per)) per Month

Meter Size

((Effective January 1, 2014

Effective January 1, 2016))

Effective January 1, 2017

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

3/4 inch and less

(($13.75

$14.15))

$15.15

(($16.25 $16.10

$17.55 $17.15

$18.90)) $18.45

1 inch

(($14.20

$14.60))

$15.60

(($16.75 $16.60

$18.10 $17.70

$19.50)) $19.00

1 1/2 inch

(($21.85

$22.50))

$24.10

(($25.85 $25.60

$27.90 $27.25

$30.05)) $29.35

2 inch

(($24.20

$24.90))

$26.65

(($28.60 $28.35

$30.90 $30.20

$33.30)) $32.50

3 inch

(($89.65

$92.25))

$98.80

(($105.95 $104.95

$114.45 $111.80

$123.25)) $120.30

4 inch and larger

(($128.45

$132.15))

$141.50

(($151.80 $150.40

$163.90 $160.20

$176.55)) $172.35

Schedule WIRM. Schedule WIRM is for single-family and duplex residences within the City in which one or more persons require medical life support equipment which uses mechanical or artificial means to sustain, restore or supplant a vital function, and which uses a disproportionate amount of water.

Commodity Charge ((Per)) per 100 Cubic Feet

 

((Effective January 1, 2014

Effective January 1, 2016))

Effective January 1, 2017

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Summer (May 16th-September 15th)

First 500 cubic feet per residence

(($5.13

$5.20))

$5.29

(($5.40 $5.33

$5.53 $5.41

$5.68)) $5.55

All over 500 cubic feet per residence

(($6.34

$6.43))

$6.54

(($6.68 $6.59

$6.82 $6.69

$7.01)) $6.86

Winter (September 16th-May 15th)

All usage

(($4.99

$5.06))

$5.15

(($5.25 $5.20

$5.37 $5.27

$5.53)) $5.40

Base Service Charge Per Month

Meter Size

((Effective January 1, 2014

Effective January 1, 2016))

Effective January 1, 2017

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

3/4 inch and less

(($13.75

$14.15))

$15.15

(($16.25 $16.10

$17.55 $17.15

$18.90)) $18.45

1 inch

(($14.20

$14.60))

$15.60

(($16.75 $16.60

$18.10 $17.70

$19.50)) $19.00

1 1/2 inch

(($21.85

$22.50))

$24.10

(($25.85 $25.60

$27.90 $27.25

$30.05)) $29.35

2 inch

(($24.20

$24.90))

$26.65

(($28.60 $28.35

$30.90 $30.20

$33.30)) $32.50

3 inch

(($89.65

$92.25))

$98.80

(($105.95 $104.95

$114.45 $111.80

$123.25)) $120.30

4 inch and larger

(($128.45

$132.15))

$141.50

(($151.80 $150.40

$163.90 $160.20

$176.55)) $172.35

1.                     Master Metered Residential Development: Multiple Parcels. The rates for residential developments with master meters of 1 1/2 inches or larger, which operate and maintain their own distribution systems on private property and which use water primarily to serve single-family, detached residences on at least two separate legal parcels, shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

Commodity Charge ((Per)) per 100 Cubic Feet

 

((Effective January 1, 2014

Effective January 1, 2016))

Effective January 1, 2017

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Summer (May 16th-September 15th)

First 500 cubic feet per residence

(($5.13

$5.20))

$5.29

(($5.40 $5.33

$5.53 $5.41

$5.68)) $5.55

Next 1,300 cubic feet per residence

(($6.34

$6.43))

$6.54

(($6.68 $6.59

$6.82 $6.69

$7.01)) $6.86

All over 1,800 cubic feet per residence

(($11.80

$11.80))

$11.80

$11.80

$11.80

$11.80

Winter (September 16th-May 15th)

All usage

(($4.99

$5.06))

$5.15

(($5.25 $5.20

$5.37 $5.27

$5.53)) $5.40

Base Service Charge Per Month

Meter Size

((Effective January 1, 2014

Effective January 1, 2016))

Effective January 1, 2017

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

1 1/2 inch

(($21.85

$22.50))

$24.10

(($25.85 $25.60

$27.90 $27.25

$30.05)) $29.35

2 inch

(($24.20

$24.90))

$26.65

(($28.60 $28.35

$30.90 $30.20

$33.30)) $32.50

3 inch

(($89.65

$92.25))

$98.80

(($105.95 $104.95

$114.45 $111.80

$123.25)) $120.30

4 inch

(($128.45

$132.15))

$141.50

(($151.80 $150.40

$163.90 $160.20

$176.55)) $172.35

6 inch

(($158.05

$162.65))

$174.10

(($186.75 $185.05

$201.70 $197.10

$217.00)) $212.00

8 inch

(($199.00

$199.00))

$205.00

(($220.00 $218.00

$237.00 $232.00

$256.00)) $250.00

10 inch

(($297.00

$297.00))

$297.00