The For City Council Meeting and Rialto Utility Authority [December 12, 2017]
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council to Approve Resolution No. 7266 of the City Council of the City of Rialto Ratifying and Confirming the Adjustments of Water and Sewer Rates effective February 1, 2018 and Resolution No. 005-17 of the Rialto Utility Authority Ratifying and Confirming the Adjustments of Water and Sewer Rates effective February 1, 2018.
(ACTION)
Body
BACKGROUND:
In order to adjust water and wastewater user rates the City must adhere to the requirements of the California Constitution Article XIIID, which was added to the California Constitution by Proposition 218, approved by the California voters on November 5, 1996. Proposition 218 requires that the following must take place:
1. The parcel upon which the fee or charge is proposed for imposition must be identified;
2. The amount of the fee or charge to be imposed must be calculated;
3. Written notice by mail of the proposed fee or charge must be provided to the record owner of each identified parcel; and
4. A public hearing must be conducted upon the proposed fee or charge no earlier than 45 days after written notice is mailed.
Proposition 218 establishes standards for the completion of the rate study which supports the imposition of water and wastewater rates. Generally, rates cannot be established in excess of the cost of service and the revenues derived can only be used for legitimate purposes related to service delivery. In addition, the rates levied upon any customer shall not exceed the proportional cost of service to that customer. In short, the rates should reasonably reflect the actual cost of serving water and wastewater customers.
Revenue from rates levied upon water and wastewater customers pay for the following:
(1) operation service fees,
(2) operator reimbursable pay...
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