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Resolution 2008-49 RESOLUTION NO. 2008-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING THE CITY'S SEWER UTILITIES SYSTEM RATE SCHEDULE EFFECTIVE JANUARY 1, 2009 AND OVERRULING ANY PROTESTS THERETO WHEREAS, pursuant to section 6 of California Constitution Article XIIID, which is commonly known as Proposition 218, the City gave at least forty-five days' notice of the time and place of the public hearing set before the City Council by causing to be mailed on October 8, 2008, said notice, postage prepaid, to all owners of property subject to the City's sewer utilities system rate schedule, and to all water and sewer utility customers on October 3, 2008 ("Mailed Notice"); and WHEREAS, said Mailed Notice stated that a public hearing on this matter would be held on December 1,2008 at 7:00 p.m., in the City Council chambers at 7351 Rosanna Street, Gilroy, at which hearing the City Council would hear any and all protests received prior to or at the public hearing in relation to a revised City sewer utilities system rate schedule and act as required by law in regard to said protests; and WHEREAS, all owners of property and customers subject to the City's sewer utilities system rate schedule were thus properly notified pursuant to law and given the opportunity to file with the City Clerk written protests at any time prior to the close of the public hearing; and WHEREAS, pursuant to law, if a majority of the owners of property subject to the proposed sewer utilities system rate schedule file valid protests to the proposed schedule, then the City Council may not adopt the new rate schedule; and WHEREAS, on December 1, 2008, the City Council held a duly noticed public hearing, at which hearing the City Council considered all testimony and evidence, including any written protests previously submitted, and all persons desiring to submit written or oral testimony regarding the City's sewer utilities system rate schedule or otherwise desiring to be heard on the matter were given that opportunity prior to the close of the public hearing. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Gilroy hereby finds and determines as follows: 1. On October 8, 2008, the City caused to be sent 11,372 Mailed Notices (representing -1- Resolution No. 2008-49 13,200 properties) to all of the owners of property subject to the City's sewer utilities system rate schedule. By the close of the public hearing on December 1,2008, the City received a total of 49 written and oral protests. Therefore, a majority of the owners of properties subject to the City's sewer utilities system rate schedule did not, at or prior to the time fixed for said hearing or during said hearing, file written or otherwise valid protests against the sewer rates. 2. All protests and objections of any kind, be they written or oral, are hereby overruled. 3. The City's sewer rates set forth in the sewer utilities system rate schedule, attached hereto as "Exhibit A" and incorporated herein by this reference, are hereby adopted to become effective January 1,2009. PASSED AND ADOPTED this 18t day of December, 2008, by the following vote: AYES: COUNCILMEMBERS: PINHEIRO ARELLANO, BRACCO, DILLON and NOES: COUNCILMEMBERS: GARTMAN, WOODWARD ABSENT: COUNCILMEMBERS: TUCKER APPROVED: ~.. ~ // Albert Pinheiro, Mayor -2- Resolution No. 2008-49 I\<\tochrvlent I V Proposition 218 Notification Notice to Property Owners of Public Hearing On Sewer and Water Rate Increases City of Gilroy 7351 Rosanna Street Gilroy, CA 95020-6197 INSERT NAME INSERT ADDRESS CITY. STATE. ZIP INSERT APN1: INSERT APN2: INSERT APN3: A Public Hearing to consider adopting the proposed sewer and water rate increases will be held December 1, 2008 at 7:00 p.m. in the City of Gilroy Council Chambers at 7351 Rosanna Street, Gilroy. The approved rates would become effective on utility billings as early as January 1,2009. P d rooose new sewer rate increase of 5.0% Residential Service Current Rate ($1 Per Month/Unit Prooosed Rate ($) Per Month/Unit Sinale Family Home 29<74 3U3 Multi-Residential/Mobile Home Parks 2U2 22<18 Commercial/Industrial Current Base Rate ($) Per Month ProDosed Base Rate ($) Per Month Siqnificant User 66<09 69.39 Non-Sionificant User 8.09 8.49 Commercial/Industrial Current Rate ($) Per 1,000 Gal ProDosed Rate ($) Per 1,000 Gal Office/School/Car Wash 4.54 4.77 DepartmenVRetail/Laundrv Rooms 4.99 5.24 Mise Users/Assembly Halls/Hospital/Hotel/Motel 5.58 5.86 Auto Dealers 5.90 6.20 Paper Container 6.86 7.20 Multi-Use/Commercial Laundries 7.04 7.39 Bakeries/Food Processors 7.63 8.01 Hotels w/Restaurant 9.05 9.50 G rocerv/Mo rtua ry/Resta urant 11.32 11.89 Since 1996, there has only been one modest increase in sewer rates (2% in 2003-2004). A 5% increase in sewer rates will be necessary to avoid depleting the cash reserve in the sewer fund and to fund increased improvement costs that will be necessary in the next few years to maintain the sewer system. P d f 5 001. rooose new water rate increase 0 0 Base Rate/Minimum Charae Meter Size Current Rate ($) Per'Month Prooosed Rate ($) Per Month :y. inch 5.73 6.02 1 inch 6.47 6.79 1-1/2 inch 16.17 16.98 2 inch 25.86 27.15 3 inch 71.31 74.88 4 inch 216.10 226.91 6 inch 438.19 460.10 8 inch 584.27 613.48 10 inch 730.33 766.85 Type of Service: Residential * Current Proposed Zone 2 Current Proposed Zone 3 Current Proposed Rate per Rate per (Hillside Pressure) Rate per Rate per (Hillside Pressure) Rate per Rate per Zone 1 Gallons/Month 1,000 Gal. 1,000 Gal. Gallons/Month 1,000 Gal. 1,000 Gal. Gallons/Month 1,000 Gal. 1,000 Gal. 0- 5,000 0.84 0.88 0- 5,000 1.54 1.62 0- 5,000 2.27 2.38 5,001 - 15,000 1.65 1.73 5,001 - 15,000 2.35 2.47 5,001 - 15,000 3.08 3.23 15,001 - 30,000 4.43 4.65 15.001 - 30,000 5.14 5.40 15,001 - 30,000 5.87 6.16 30,000 + 6.46 6.78 30,000 + 7.15 7.51 30,000 + 7.89 8.28 Commercial! Industrial* Current Proposed Zone 2 Current Proposed Zone 3 Current Proposed Rate per Rate per (Hillside Pressure) Rate per Rate per (Hillside Pressure) Rate per Rate per Zone 1 Gallons/Month 1,000 Gal. 1,000 Gal. Gallons/Month 1,000 Gal. 1,000 Gal. Gallons/Month 1,000 Gal. 1,000 Gal. 0- 3,000 0.84 0.88 0- 3,000 1.54 1.62 0- 3,000 2.27 2.38 3,001 - 30,000 2.00 2.10 3,001 - 30,000 2.69 2.82 3,001 - 30,000 3.42 3.59 30,001 + 2.22 2.33 30,001 + 2.92 3.07 30,001 + 3.65 3.83 Irriqation Current Proposed Zone 2 Current Proposed Zone 3 Current Proposed Rate per Rate per (Hillside Pressure) Rate per Rate per (Hillside Pressure) Rate per Rate per Zone 1 Gallons/Month 1,000 Gal. 1,000 Gal. Gallons/Month 1,000 Gal. 1,000 Gal. Gallons/Month 1,000 Gal. 1,000 Gal. 0-30,000 4.43 4.65 8 - 30,000 5.14 5.40 o - 30,000 5.87 6.16 30,001 + 6.46 6.78 30,001 + 7.15 7.51 30,001 + 7.89 8.28 * * Above rates are for inside city service. All outside city services are double the inside rate. Seniors that qualify for PG&E's Care Program may apply for a senior rate that gives them an exemption for the first 5,000 gallons per month. The proposed rate increases for water utility services are primarily due to the increase in the cost of water pumping charges from the Santa Clara Valley Water District as well as increases from electric utility costs and replacement of aging infrastructure. For more information about the proposed rate increases for sewer and water utility services, call the City of Gilroy's Utility Billing Services Division at (408) 846-0420. I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2008-49 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 1 st day of December, 2008, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 18th day of December, 2008. -, S wna Freels, CMG City Clerk of the City of Gilroy (Seal)