HomeMy WebLinkAbout5/3/2000 - STAFF REPORTS (14) DATE: May 3, 2000
TO: CRY Council
FROM: Assistant City Manager-Special Projects
SEWER SERVICE CHARGE RATE BASE POLICY
It is recommended that City Council establish policy statements,effective July 1,2000,
on the costs to be included in the Sewer Service Charge rate base.
BACKGROUND:
Proposition 218 established the principle thatfees charged fora service should reflect
the total cast of that service. Proposition °U", passed in November by the Palm
Springs voters, reemphasized the principles of Proposition 218.
The sewer charge rate base In the past has included an In-Lieu Property Fee and a
calculated Administrative Services charge,but not the full debt service on the existing
bond Issue. Only about 10% of the bond debt service was allocated to the Sewer
Service Charge, the remainder of the debt payments came from the Sewer Facility
Fees, Interest earnings from the Wastewater Treatment Plant Fund reserves and the
reserve itself. The attached Resolution, If adopted by City Council,would establish
a policy that the Sewer Service Charge rate base shall Include:
a) Full Operations&Maintenance Costs
b) City Direct Charges for Services
c) Motor Vehicle Replacement Fees
d) Property Leases
e) Debt Service
f) Insurance
g) Other Allowable Charges under Prop 218
The attached Resolution is offered for City Council consideration.
ALLEN F. SMOOT,AAE
Assistant City Man r Special Projects
APPRO D
Ci y Manager
ATTACRe NT:
Resolution #9
RMINIM SY DIR OF MIRE
U
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, SETTING
POLICY CONCERNING SEWER SERVICE
FEE RATE BASE COMPONENTS.
WHEREAS the City, with the assistance of Integrated Utilities Group, Inc., Is in the midst of
developing a new sewer rate program and must establish a policy on all the costs which
should be placed in the rate base; and
WHEREAS Proposition 218,as passed by state voters, embodies the principle that fees for
service should be established based on the actual costs of providing the service; and
WHEREAS the Palm Springs voters reemphasized the Prop 218 principle when they passed
Proposition°U° In November of 2000,which prohibited the sale or lease of the Wastewater
Plant to a private entity and prohibited In-lieu fee and administrative The charges; and
NOW THEREFORE BE IT RESOLVEDthatthe City Council hereby establishesthe following
policy:
Section 1. The Sewer Service Charge rate base shall be made up of the following cost
components:
A. Full Operation &Maintenance Costs
B. City Direct Charges for Service
C. Motor Vehicle Replacement Fees
D. Property Leases
E. Debt Service
F. Insurance
G. Other Allowable Charges Under Proposition 218
ADOPTED this day of 2000.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM AS-