City of Santa Monica Staff Report: 07/23/96

Item 06-G

Council Meeting: July 23, 1996 Santa Monica, California

TO: Mayor and City Council

FROMFROM: City Staff

SUBJECT: Recommendation to Adopt Resolution Establishing or Amending Fees for Certain Water and Wastewater Services

INTRODUCTION
This staff report recommends that the City Council adopt the
attached resolution establishing or amending fees for certain
water and wastewater services.

BACKGROUND
On December 12, 1995, the City Council adopted Ordinance 1836
(CCS) which added and amended certain sections of the Santa
Monica Municipal Code relating to water and wastewater services.
Several of the sections were amended to eliminate deposits and
allow fees to be set and amended by resolution. The attached
resolution revises existing fees for sewer permits, miscellaneous
types of sewer connections, temporary water service, unauthorized
use of fire hydrant, unmetered water use, damage to shut-off
valves, re-establishing delinquent accounts, testing water meters
and deposits.

Two new fees to be set by this Resolution include a fee for
testing Water pressure at a site, or "fire hydrant flow test,"
and a late charge for delinquent accounts.

DISCUSSION
Many of the proposed fees set by the attached resolution have not
been updated for ten or more years. The proposed fees are based
on actual average costs to the City.

In addition to updating fees, a late charge for delinquent
accounts is being established to encourage customers to pay
within thirty days as stated on the bill to avoid the expense of
collection activities. Staff recommends that a 3% late charge,
similar to other agencies such as Los Angeles' Department of
Water and Power and City of Torrance, be assessed 31 days after
the date of the bill on any unpaid balance. The late fee will not
be implemented until all customers are properly notified and a
grace period has been given to clear up past due balances.

A legal notice of the proposed fee increases was published in the
Outlook on July 9 and July 16, 1996, as required by law.

BUDGET/FINANCIAL IMPACT
The revenue impact of the above fees was included in the FY 1996-97 Adopted Budget. The revenue impact is as follows:

Current Revised
Water Fees Fees Change

Commercial
Sales $9,286,362 $9,346,110 $ 59,748
(25-500-671-
00000-0231-
10000)

Water - Misc.
Non-operating
(25-500-671-
00000-0235-
10000) 112,740 117,780 5,040
Water Meter -
Service/Install
(25-500-671-
00000-0236-
10000) 75,000 183,495 108,495

Total
Water $9,474,102 $9,647,385 $173,283

Solid Waste
Garbage/Refuse
Collection $9,300,700 $9,351,808 $ 51,108
(27-500-441-
00000-0150-10000)

Wastewater
Sewer Service
Charges $8,425,429 $8,500,451 $ 75,012
(31-500-661-
00000-0165-10000)

RECOMMENDATION
It is recommended that the City Council adopt the attached
resolution establishing fees for certain water and wastewater
services.

RESOLUTION NO. (CCS)
(CITY COUNCIL SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ESTABLISHING AND
REVISING FEES FOR CERTAIN WATER AND
WASTEWATER SERVICES

WHEREAS, the City Council may establish, amend, or revise
from time to time by resolution fees to provide certain water and
wastewater services pursuant to Article 7 of the Santa Monica
Municipal Code; and
WHEREAS, the City faces increasing costs of providing water
and wastewater services.
NOW, THEREFORE, THE CITY OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
Section 1. The cancellation service fee (retained from the
permit) house connection sewer permits shall be $30.00. (SMMC
7.04.500)
Section 2. The house connection sewer permit fee shall be
$100.00 which shall include one inspection. Additional
inspections shall be $70.00 each. (SMMC 7.04.510)
Section 3. The fee for sewer tap connections on sewer main
12-inches and under shall be $295. (SMMC 7.04.600)
Section 4. The fee for sewer tap connections on sewer mains
between 12-inches and 24-inches shall be $295, and sewer mains
over 24-inches shall be $365. (SMMC 7.04.600 b.)
Section 5. The fee for sewer Y-branch connections shall be
$455. (SMMC 7.04.600 d.).
Section 6. The fee for inspection of catch basin or manhole
connections shall be $70.00. (SMMC 7.04.600 f.)
Section 7. The fee for temporary water service shall be
$375.00 for three months. The fee for unauthorized use of a fire
hydrant shall be $75.00 a day in addition to the cost of water
used. (SMMC 7.12.060 (a))
Section 8. The minimum charge for unmetered water use shall
be $25.00 per day of operation or estimated costs of water used,
whichever is greater. (SMMC 7.12.060 (c))
Section 9. The fee for each hydrant flow test shall be
$250.00. (SMMC 7.12.070)
Section 10. The fee for re-establishing a delinquent
account shall be $30.00 for each visit to the account site.
(SMMC 7.12.110)
Section 11. The late charge for a delinquent account shall
be 3% per billing period which will be applied to any past due
balance thirty days or over as reflected on a customer's
bimonthly utility bill. (SMMC 7.12.111)
Section 12. The deposit required for water service,
sewer service and refuse collection shall be a minimum of $100.00
or approximately equal to an estimated three months' service
charges, whichever is higher. (SMMC 7.12.130)
Section 13. The fees for installing new, relocating or
enlarging existing domestic water meter service shall be:
3/4" meter $ 1,250
1" meter $ 1,410
1-1/2" meter $ 1,725
2" meter $ 1,925
3" meter $ 4,660
4" meter $ 5,685
6" meter $ 7,680
8" meter $12,015
10" meter $22,350
The fee for installing new fire line service shall be:
3" and 4" meter $1,875
6" meter $2,230
8" meter $2,795
10" & 12" meter $3,250

The fee for replacing an existing meter with a smaller meter
at the same location (downsizing) at the customer's request shall
be at the actual cost of installation and the charge for such fee
will be placed on the customer's regular bi-monthly utilities
bill. (SMMC 7.12.140)

Section 14. The deposit for testing a meter shall be $35.00
for meters 2-inch and under and $100 for meters over 3 inches.
The charge will be placed on the customers' regular bi-monthly
utility bill and refunded through adjustments to the customers'
regular bi-monthly utility bill if the meter is in disrepair.
(SMMC 7.12.240)

Section 15. The fee for damaging a water meter shut-off
valve and appurtenant equipment shall be $100.00 or actual cost
of repair whichever is greater. The charge shall be placed on
the customer's regular bi-monthly utility bill. (SMMC 7.12.250)

Section 16. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.

APPROVED AS TO FORM:

__________________________
Marsha Jones Moutrie
City Attorney