HomeMy Public PortalAbout2020-07-14 Item 10CITY COUNCILAGENDA REPORTd•Y•-ft€«,r-IflV,rfss§CITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT: Defer Water Rate Increase Effective July 1,2020 to January 1,2021ATTACHMENTS: NoneReport No. 6S^&For Agenda of: July 14, 2020Department: Public WorksOriginator: ^ch^e^&ApprovedfBudget ActionYes:No: XFinance Review:xEVFORMATIONALREPORT TYPE: ACTIONITEM TYPE: CONSENT PUBLIC HEAREVGEXISTING BUSENESS NEW BUSINESS XRECOMMENDATION:Staff recommends that the City Council, by motion, defer the proposed water rate increase scheduled tobe effective on July 1, 2020 until January 1, 2021, in light of the existing pandemic.BACKGROUND:On September 12, 2017, City Council adopted a resolution approving a five-year series of water rateincreases commencing on October 1, 2017. The adopted rate increases are as follows:Effective DateWater Rates Effective on or AfterOct 12017July 12018July 12019July 12020July 1^021FIXED MONTHLYSERVICE CHARGEFixed monthly charge based on meter sizeMeter Size3/4-inch1-inch11/2-inch2-inch3-inch4-inch6-inch8-inch10-inchFire Service ChargePer Connection$20.0025.0050.0080.00150.00250,00500.00800.001450.00$32.53$22.5028.1356.2590.00168.75281.25562.50900.001,293.75$36.60$25.0031.2562.50100.00187.50312.50625.001,000.001,437.50$40.67$27.5034.3868.75110.00206.25343,75687.501,100.001,581.25$44.74$30.0037.5075,00120,00225.00375,00750.001,200.001,725.00|$48.81Quantity ChargeI Billed per hundred cubic feet (ec f) of mete red water use(lccf= 748 gallons = 1 unit)All Water Use$8.00$9.20$10.40$11.60$12.8016688190.1
Effective July 1, 2020, the water rate is scheduled to increase by 10%. A typical single-family residentialhome in Millbrae would see its fixed monthly service charge for a 3A-inch meter increase from the current$25.00 to $27.50 monthly and the consumption charges will also increase from the current charge of$10.40 per unit of water (100 cubic feet or approximately 748 gallons) to $11.60.A typical single-family residential account with an average 6 units of water consumption monthly wouldsee the average monthly bill go from current monthly charge of $87.40 to $97.10.Due to the COVID-19 pandemic, the City has suspended shutting off water accounts for non-payment.The City has also been working with its customers to assist with payment plans for customers who areexperiencing financial difficulty.Staff recommends that the City Council, by motion, defer the planned water rate increase currentlyscheduled to become effective on July 1,2020, until January 1,2021 , to assist our customers in weatheringthe financial difficulty due to the COVID-19 pandemic.FISCAL IMPACT:The six-month deferral of the water rate increase is expected to decrease revenues by $470,000. This isprojected to be offset by reductions in operational and capital costs, including the stoppage of many non-essential projects, due to the shelter-in-place order since mid-March. Staff will re-visit the CapitalProgram in September when the City reports backs with an update on the preliminary year-end results forFiscal Year 2019-2020.COUNCIL ACTION:By motion, defer the planned water rate increase scheduled to be effective July 1, 2020 until January 1,2021.Page 2 of 216688190.1