CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to water services of Seattle Public Utilities; revising water rates and charges for service to wholesale customers; and amending Seattle Municipal Code Section 21.04.440 in connection therewith.
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WHEREAS, Seattle Public Utilities provides wholesale water service to many water utilities surrounding Seattle (Wholesale Customers) under the provisions of various long-term water supply contracts; and
WHEREAS, these water supply contracts establish procedures for allocation of Seattle Public Utilities’ costs to Wholesale Customers and treatment of accumulated surpluses or deficits of annual revenues as compared to annual costs; and
WHEREAS, the existing wholesale commodity charges, surcharges, and discounts authorized by Ordinance 124599 were based on a rate study covering 2015 through 2017; and
WHEREAS, Seattle Public Utilities completed a rate study covering Wholesale Customers for 2018 through 2020 and resulting rates consistent with the wholesale contracts have been calculated; and
WHEREAS, the provisions of the Full and Partial Requirements Contract for Supply of Water (Contracts) also require Wholesale Customers to pay a new service fee (Facility Charge) at the time they connect a new retail customer to their respective retail water distribution systems; and
WHEREAS, the amount of the Facility Charge is based in part on recovering costs associated with Seattle Public Utilities' investments in regional water conservation, which Wholesale Customers participate in pursuant to their Contracts; and
WHEREAS, the existing Facilities Charges authorized by Ordinance 124367 were based on the costs of Seattle Public Utilities’ regional water conservation program from 2014 through 2018; and
WHEREAS, pursuant to the Contracts, the Operating Board of the Seattle Regional Water Supply System has determined to recover costs for regional conservation for 2019 through 2023 through Facility Charges; and
WHEREAS, the Facilities Charges to recover the costs of the regional water conservation program for 2019 through 2023 have been calculated; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Subsection 21.04.440.E of the Seattle Municipal Code, which section was last amended by the ordinance introduced as Council Bill 119050, is amended as follows:
21.04.440 Rates outside The City of Seattle ((.))
* * *
E. Wholesale ((Customers - Commodity and Other Charges.)) customers - commodity and other charges
1. Reserved
2. Full or ((Partial Requirements Contracts)) partial requirements contracts. The rate to be charged to wholesale customers being served under the provisions of contracts substantially in the form of the Full and Partial Requirements Contracts for the Supply of Water that were authorized by Ordinance 120362 or 123559 ("Full or Partial Requirements Contract") shall consist of a commodity charge, surcharges, discounts, and facilities charges as follows:
|
Commodity Charge Per 100 Cubic Feet of Water |
((Effective Jan. 1, 2014)) |
Effective Jan. 1, 2015 |
Effective Jan. 1, 2018 |
Effective Jan. 1, 2019 |
Effective Jan. 1, 2020 |
|
Summer (May 16th - September 15th) |
(($2.27)) |
$2.10 |
$2.22 |
$2.36 |
$2.50 |
|
Winter (September 16th - May 15th) |
(($1.53)) |
$1.42 |
$1.50 |
$1.58 |
$1.67 |
The following surcharges and discounts apply to each wholesale customer that has agreed to them in a contract substantially in the form of the Full or Partial Requirements Contracts:
|
Additional Charge Per 100 Cubic Feet of Water |
((Effective Jan. 1, 2014)) |
((Effective Jan. 1, 2015)) |
Effective April 1, 2015 |
Effective Jan. 1, 2018 |
Effective Jan. 1, 2019 |
Effective Jan. 1, 2020 |
|
Northwest Wheeling Rate Surcharge |
(($0.02)) |
(($0.02)) |
$0.07 |
$0.07 |
$0.07 |
$0.07 |
|
Southwest Subregion Surcharge |
(($0.07)) |
(($0.16)) |
$0.16 |
$0.16 |
$0.16 |
$0.16 |
|
East Subregion, Segment #3 Surcharge |
(($0.16)) |
(($0.08)) |
$0.08 |
$0.00 |
$0.00 |
$0.00 |
|
East Subregion, Segment #4 Surcharge |
(($0.19)) |
(($0.16)) |
$0.16 |
$0.00 |
$0.01 |
$0.01 |
|
Renton New Supply Discount Per 100 Cubic Feet of Water |
((Effective Jan. 1, 2014)) |
Effective Jan. 1, 2015 through December 31, 2017 |
|
Summer (May 16th - September 15th) |
$0.02 |
$0.02 |
|
Winter (September 16th - May 15th) |
$0.02 |
$0.01 |
|
Renton New Supply Surcharge Per 100 Cubic Feet of Water |
Effective Jan. 1, 2018 |
Effective Jan. 1, 2019 |
Effective Jan. 1, 2020 |
|
Summer (May 16th - September 15th) |
$0.08 |
$0.08 |
$0.09 |
|
Winter (September 16th - May 15th) |
$0.05 |
$0.06 |
$0.06 |
In addition, each wholesale customer served under a contract substantially in the form of the Full or Partial Requirements Contracts that requires payment of facilities charges based on each new metered service connection installed within its service area shall pay the facilities charges according to the following schedule:
Through December 31, 2018:
|
Meter Size |
Facilities Charge |
|
1 inch and smaller |
$936.00 |
|
1 1/2 inch |
4,180.00 |
|
2 inch |
6,688.00 |
|
3 inch |
18,392.00 |
|
4 inch |
25,916.00 |
|
6 inch |
55,176.00 |
|
8 inch |
93,632.00 |
|
10 inch |
141,284.00 |
|
12 inch and larger |
198,968.00 |
Effective January 1, 2019:
|
Meter Size Facilities Charge |
|
|
1 inch and smaller |
$1,081.00 |
|
1 1/2 inch |
4,825.00 |
|
2 inch |
7,720.00 |
|
3 inch |
21,230.00 |
|
4 inch |
29,915.00 |
|
6 inch |
63,690.00 |
|
8 inch |
108,080.00 |
|
10 inch |
163,085.00 |
|
12 inch and larger |
229,670.00 |
* * *
Section 2. Prior ordinances of the City setting rates and charges for water
services of Seattle Public Utilities shall continue in effect with respect to obligations
incurred for water services rendered before the effective date of this ordinance, unless
and until such prior ordinances expire of their own terms or are superseded.
Section 3. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by the City Council the ________ day of _________________________, 2017, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2017.
____________________________________
President ____________ of the City Council
Approved by me this ________ day of _________________________, 2017.
____________________________________
Tim Burgess, Mayor
Filed by me this ________ day of _________________________, 2017.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)