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274 1 ' r ORDINANCE NO. 2014-274 AN ORDINANCE OF THE CITY OF GRAND TERRACE, CALIFORNIA ADOPTING RATE INCREASES TO CITY OF GRAND TERRACE SEWER SERVICE FEES WHEREAS, the City of Grand Terrace (the "City") operates a municipal sewer system, and transmits the wastewater from properties located within the City to the City of Colton ("Colton") for treatment and disposal; and WHEREAS, under an agreement between the City and Colton, Colton will be operating the City's sewer system as part of Colton's sewer system, such that there will be one unified sewer system with the rates to be equalized between the two cities; and WHEREAS, Colton undertook an evaluation of the capital infrastructure needs, programs, and operations and maintenance costs of the unified wastewater system; and WHEREAS, based on this evaluation, the City has been determined that in the fiscal year-beginning July 1, 2014, the City will need to increase the rates for its wastewater service fees for all customers in the City; and WHEREAS, future rate _increases will be necessary for all of the City's wastewater customers to enable Colton to recover projected costs of providing wastewater services for the unified wastewater system, and to ensure that it can safely treat and dispose of sewage, maintain the operational and financial stability of the utility, and avoid operational deficits and depletion of reserves; and WHEREAS, the rates for the wastewater service fees are comprised of five customer classes — (1) residential (which includes single-family residences, mobile homes, and churches); (2) multi-family (which includes apartment units and condominiums); (3) schools; (4) commercial and industrial; and (5) significant commercial/industrial (which includes commercial and industrial customers that discharge more sewage than other commercial or industrial customer and/or that have sewage discharges that place more significant loads on the wastewater system); and WHEREAS, the rates for the monthly wastewater service fees for residential and multi- family properties are determined on an equivalent dwelling unit ("EDU")basis; and WHEREAS, the rates for schools are determined on the basis of the estimated sewer flow generated at an identified school in terms of the number of students attending (in hundreds); and WHEREAS, the rates for commercial and industrial customers and significant industrial customers are determined on the basis of the estimated sewer flow a property contributes to the wastewater system (using monthly metered water use data) and the loads that a customer's sewage discharges put on the system (based on biochemical oxygen demand and total suspended solids); and City of Grand Terrace Ordinance No.274 WHEREAS, the rates are calculated to proportionately allocate capital replacement, operations, maintenance, treatment, and disposal costs to each customer class; and WHEREAS, in accordance with the provisions of Article XHI D, section 6 of the California Constitution, the City mailed out notices of the proposed rate increases and such notices were provided to all property owners and tenants directly liable for sewer service fees within the City not less than 45 days prior to the public hearing on the proposed establishment of rates and fees as set forth herein; and WHEREAS, the City Council conducted a public hearing on July 8, 2014, in order to receive oral and written testimony regarding this Ordinance and the proposed rate increases. Said date and time were not less than forty-five days after the mailing of the notice; and WHEREAS, at the conclusion of the public hearing, written protests against the proposed rate increases were not presented by a majority of the record owners of parcels upon which the sewer service fees are imposed and tenants directly responsible for the payment of sewer service fees; and WHEREAS, on July 8. 2014 the City Council approved the Sewer Rate Study; and WHEREAS, it is deemed to be in the best interests of the City to adopt the rate increases due to the fiscal impacts referenced above. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES ORDAIN AS FOLLOWS: Section 1. All of the foregoing Recitals are true and correct and the City Council so finds and determines. The Recitals set forth above are incorporated herein, are made findings and determinations of the City Council, and are made an operative part of this Ordinance. Section 2. The City Council hereby finds and determines that written protests against the proposed rate increases were not presented by a majority of the record owners of parcels upon which sewer service fees are imposed and tenants directly responsible for the payment of sewer service fees. The City Council therefore finds and determines that a majority protest does not exist and it is authorized to impose the rate increases as set forth herein. Section 3. The City hereby adopts the rates for sewer service fees in the amounts and on the effective dates set forth in the tables below. RESIDENTIAL AND MULTI-FAMILY CUSTOMERS MONTHLY WASTEWATER RATES ($/EDU) Rates and Effective Dates Customer Class 9/1/14 7/1/15 7/1/16 7/1/17 Residential $32.35 $33.00 $33.66 $34.33 Multi-Family2 $28.15 $28.71 $29.28 $29.87 r 1.Includes single-family residences,homes/mobile homes,and churches. 2.Includes apartment units and condominiums. -2- • City of Grand Terrace Ordinance No.274 SCHOOLS MONTHLY WASTEWATER RATES ($/100 Students) Rates and Effective Dates Customer Class 9/1/14 7/1/15 7/1/16 7/1/17 Schools $73.04 1 $74.51 $76.00 $77.52 COMMERCIALANDUSTRIAL CUSTOMERS MONTHLY WASTEWATER RATES ($/HCF)1 Rates and Effective Dates Customer Class 9/1/14 7/1/15 7/1/16 7/1/17 Commercial/Industrial Low Strength $0.77 $0.79 $0.80 $0.82 Medium Strength $1.12 $1.14 $1.17 $1.19 High Strength $2.28 $2.33 $2.38 $2.42 1. HCF means one hundred cubic feet. Section 4. The City Manager is authorized and directed to take all actions necessary to implement the authorized rates. Section 5. The City Council finds and determines that the administration, operation, maintenance and improvements of the City sewer system, which are to be funded by the increased sewer service rates set forth herein, are necessary to maintain service within the City's existing service area. The City finds that the adoption of the rates and fees is necessary and reasonable to fund the administration, operation, maintenance and improvements of the unified wastewater system. Based on these findings, the City Council determines that the adoption of the rates and fees established by this Ordinance are exempt from the requirements of the California Environmental Quality Act pursuant to section 21080(b)(8) of the Public Resources Code and section 15273(a) of the State CEQA Guidelines. The Interim City Clerk is hereby directed to file a Notice of Exemption with the County Clerk within three days following the date of this Ordinance. Section 6. All ordinances, resolutions, or administrative actions by the City Council, or parts thereof, that are inconsistent with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency. Section 7. Within 15 days after adoption of this Ordinance, a summary of the Ordinance shall be published with the names of those members of the City Council voting for and against this Ordinance and a certified copy of the full text of this Ordinance, along with the names of those City Council members voting for and against this Ordinance, shall be posted in the office of the City Clerk. Section 8. If any section, subsection, clause or phrase in this Ordinance is for any reason held invalid, the validity of the remainder of this Ordinance shall not be affected thereby. _ The City Council hereby declares that it would have passed this Ordinance and each section, \ subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases or the application thereof be held invalid. -3- • City of Grand Terrace Ordinance No.274 Section 9. This Ordinance shall take effect thirty days after its final passage. Approved and Adopted this 22nd day of July, 2014, by the City Council of the City of Grand Terrace. Walt Stanckiewitz Mayor ATTEST: De orah A.�Iarringt Interim City Clerk APPROVED AS TO FORM: Z?ardL. Adams II City Attorney L. -4- City of Grand Terrace Ordinance No. 274 CERTIFICATION I, Deborah A. Harrington, Interim City Clerk of the City of Grand Terrace, California, do hereby certify that the foregoing Ordinance was regularly introduced at a regular meeting of the City Council of the City of Grand Terrace, California, duly held the 8th day of July, 2014, and thereafter adopted at a regular meeting held on the 22°d day of July, 2014, by the following vote of the Council: AYES: Council Members: McNaboe, Mitchell, Robles and Mayor Stanckiewitz NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Grand Terrace, California, this 24th day of July, 2014. 4rah A. Harrington, Ir6e m City Clerk_ City of Grand Terrace, California = -5-