American Canyon Municipal Code Ch. 13.06 Water Rates and Connection Fees

For purposes of this chapter, the following terms shall be defined as set forth below:

"Commercial" means any nonresidential premises classified as a retail store, restaurant, office building, laundry, master-metered multifamily or mobile home park, and other service establishment (including churches, lodges, government services, or public services) connected to the city water system, and which cannot be classified as a large industrial, raw water, landscape service, recycled water, or single-family residential, pursuant to this section. "Cost of service" means the sum of all expenses relating to the ongoing operation of the water enterprise, to include but not be limited to salaries and benefits of all city staff required to run the water enterprise, operating expenses such as utilities and the purchase of water, related wastewater operations debt service related to improvements to the water system, and the maintenance and timely replacement of all existing capital infrastructure. "Customer" means any residence, business or other entity that has signed up and contracted with the city for a specific water service. The type of customer is determined by the rate charged; thus, a commercial use could be a single-family residential customer, if the business qualified pursuant to Section 13.06.020(C) of this chapter. "Customer charge" means a flat fee per each water billing period, billed on a monthly basis. "Inside-the-city" means any water connection within the city corporate boundaries as they presently exist or as they may be modified from time to time. "Landscape service" means a metered account used exclusively for landscaping purposes. Such accounts are exempt from wastewater service charges, but must agree to use recycled water, if and when it becomes available; must agree to participate in the city's water conservation program; and would be subject to use restrictions and/or fee surcharges during periods of drought. "Large industrial" means any premises whose annual water use is in excess of four thousand two hundred units (Ccf) per year, is located within city boundaries, is separately connected to the water system, and whose predominant water use is for industrial purposes. Such customers must agree to supplemental conditions of service, including compliance with the city water conservation program, use of landscape service accounts as appropriate, and use of recycled water as appropriate, if and when it becomes available. "Meter charge" means a flat fee, based on the size of water meter in service, billed on a monthly basis. "Multifamily" means any premises that is residential in nature and consists of more than one dwelling unit served by a single metered water connection including any mobilehome park. Such master-metered customers shall be charged the same as commercial customers. Temporary residential premises (e.g., hotels) are treated as a commercial use. "Outside- the-city" means any water connection outside the incorporated city limits. "Private fire protection service" means water service for a sprinkler system obtained through a separate service line connected in accordance with city standards to the water system. "Quantity charge" means a charge per unit of water consumed by a customer. For example, this charge may be fixed for all units of water consumed for commercial customers, or, for single-family residential customers, may be "tiered" so that the charge increases in increments as more water is used in order to encourage conservation. "Raw water" means any premises or property, which, by action of the city council, makes a special arrangement to use water provided by the city that is not treated at the city's water treatment plant. A raw water customer must agree to use recycled water, when available, and would be subject to use restrictions and/or surcharges during periods of drought or restricted supply. "Recycled water" means wastewater effluent treated to tertiary levels consistent with California Code of Regulations Title 22 standards, and may include, but not be limited to, irrigation, landscaping, groundwater, industrial and groundwater recharge uses. "Single-family residential" means a free-standing home that is served by a dedicated water service line and meter and has only one legal dwelling unit. "Temporary meter" means a metered water connection to the city's system for a duration of no longer than six months, or, under special circumstances approved by the city manager no longer than twelve months. The connection must conform to city standards for temporary connections. "Unit" means one hundred cubic feet of water as measured by water meters approved by the city, or approximately seven hundred forty eight gallons

Ord. 2007-13 § 3, 2007

(A) It shall be city policy to collect water rates and charges that meet but do not exceed the cost of service of the water enterprise.

(B) It shall be city policy to set water rates and charges that are fair and equitable to all customer classes and recover each customer share of the total cost of service in proportion to their use of the city system.

(C) It shall be city policy to have a water rate study performed, by a qualified independent rate consultant, at least once every five years, to ensure that water rates and charges are set to an appropriate level. Rate studies will be based on American Water Works Association (AWWA) rate setting principles and shall recommend rates which meet the cost of service of the city water enterprise.

(D) The city may exercise its discretion consistent with Hansen v. City of San Buenaventura, 42 Cal.3d 1172 (1986) to enact a rate for property owners outside the city which is forty percent greater than the rate for water customers within the city.

Ord. 2007-13 § 3, 2007

(A) Each customer shall pay a fixed monthly fee based on the size of water meter in service to allow the city to recover a portion of its fixed costs that it incurs regardless of water use. Water meter charges shall be paid monthly and calculated according to AWWA-approved demand ratios, and shall be equally applied based on meter size to all customer classes.

(B) As of the effective date of the ordinance codified in this chapter, or January 1, 2008, whichever comes later, the water meter charges for customers shall be levied according to the following schedule. Inside city customers:

Meter size 1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

5/8″ and 3/4″ $ 4.00 $ 4.40 $ 4.84 $ 5.32

1″ 4.00 4.40 4.84 5.32 Residential

1″ 6.67 7.34 8.07 8.88

1.5″ 13.33 14.67 16.13 17.75

2″ 21.33 23.47 25.81 28.39

3″ 42.67 46.93 51.63 56.79

4″ 66.67 73.33 80.67 88.73

6″ 133.33 146.67 161.33 177.47

8″ 213.33 234.67 258.13 283.95

Outside city customers:

Meter size 1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

5/8″ and 3/4″ $5.60 $6.16 $6.78 $7.45

1″ Residential 5.60 6.16 6.78 7.45

1″ 9.34 10.27 11.30 12.43

1.5″ 18.67 20.53 22.59 24.85

2″ 29.87 32.85 36.14 39.75

3″ 59.73 65.71 72.28 79.51

4″ 93.33 102.67 112.93 124.23

6″ 186.67 205.33 225.87 248.45

8″ 298.67 328.53 361.39 397.53

(C) As of the effective date of the ordinance codified in this chapter, or January 1, 2008, whichever comes later, temporary water meter charges for customers shall be levied according to the following schedule: Inside and outside city customers:

Meter size 1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

Temporary Meter $59.73 $65.71 $72.28 $79.51

(D) Starting on January 1st, 2012, and on every January 1st thereafter, all water meter charges will be adjusted by the percent change in the Bay Area Consumer Price Index over the previous calendar year, or by three percent, whichever is less.

Ord. 2007-13 § 3, 2007

(A) Each customer shall pay a quantity charge for each unit of water used in a given month. In order to encourage conservation among city users, single-family residential customers will pay a "tiered" rate that increases in increments as water consumption increases. All commercial customers (to include master metered multi-family, industrial, landscaping, public, and schools) shall pay a fixed quantity rate for all water consumed.

(B) As of the effective date of the ordinance codified in this chapter, or January 1, 2008, whichever comes later, customers will pay quantity rates according to the schedule included below. Single-family residential—Inside city:

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

Tier 1 0-8 hcf $2.25 $2.41 $2.58 $2.76

Tier 2 9-20 hcf 2.88 3.08 3.30 3.53

Tier 3 21+ hcf 3.45 3.55 3.66 3.77

Single-family residential—Outside city:

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

Tier 1 0-8 hcf $3.15 $3.37 $3.61 $3.86

Tier 2 9-20 hcf 4.03 4.31 4.62 4.94

Tier 3 21+ hcf 4.83 4.97 5.12 5.28

Commercial, industrial, multifamily, landscaping, public—Inside city:

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

All water consumed $2.63 $2.81 $3.01 $3.22

Commercial, industrial, multifamily, landscaping, public—Outside city:

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

All water consumed $3.68 $3.94 $4.22 $4.51

Temporary meters—Inside and outside city customers:

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

All water consumed $3.68 $3.94 $4.22 $4.51

Raw water—Inside and outside city customers:

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11

All water consumed $1.26 $1.35 $1.44 $1.54

(C) Effective January 1, 2012, and on every January 1st thereafter, water quantity charges will be adjusted by the percent change in the Bay Area Consumer Price Index over the previous calendar year, or by three percent, whichever is less.

Ord. 2007-13 § 3, 2007

The city council declares its intent that any future

changes in the water rates established in this chapter shall be by resolution, and the adoption of such a resolution shall have the same force and effect as though the changes had been made by the adoption of an ordinance.

Ord. 2007-13 § 3, 2007

(A) Each customer who obtains or utilizes a private fire protection service inside-the-city shall pay a charge for water measured as having passed through a bypass meter on the service protective backflow apparatus. The charge for such service shall be one-half the customer charge for inside-the-city commercial users.

(B) Each customer who obtains or utilizes a private fire protection service outside-the-city shall pay a charge for water measured as having passed through a bypass meter on the service protective backflow apparatus. The charge for such service shall be one-half the customer charge for outside-the-city users.

(C) Existing commercial customers requesting to retrofit an existing building with a private fire protection service shall pay the appropriate meter installation fee and related charges, including any required devices. No additional connection fee shall be charged.

Ord. 2007-13 § 3, 2007

(A) Commercial users who desire the single-family residential rate may apply for the rate. If approved by the city manager, the single-family rate shall remain in force for a minimum of twelve months. It is the customer's responsibility to request a further modification.

(B) The city council may, establish policies and procedures by resolution to administer this chapter, including, but not limited to, allowing credits to customers for large, one time water losses and related wastewater charges.

(C) Raw water users, prior to connection, shall apply to the city for permission to connect and receive raw water.

(D) Existing commercial customers requesting a landscape meter shall pay the appropriate meter installation fee and related charges. An additional connection fee shall not be required unless either the overall water consumption increases, or the landscape meter size is larger than the currently installed meter. In either event, the customer shall pay the incremental increase in the connection fee amount. Any landscape-related arrangements between the city and any specific customer established by city council action prior to February 3, 2000 shall remain in full force and effect, unless and until it is modified by a subsequent city council action.

(E) Any water user that establishes a well for domestic water purposes after January 1, 2008 shall apply to the city for permission to receive and use well water upon dedication of the well and well water to the city water system.

Ord. 2007-13 § 3, 2007

The purpose of a water capacity fee

is to allow the city to recover the costs associated with providing a new connection to the city's water system. The fee is set to recover the costs of all existing infrastructure, provided by existing customers for the benefit of the new connection, as well as all future capital projects required to provide that new connection with sufficient water supply, treatment, and distribution capacity in the city's water system.

Ord. 2007-09 § 1, 2007

(A) At the time of submission of an application for a building permit for connection to the city water system, an applicant shall be required to pay a water capacity fee, in proportion to the new connection's impact on the water system.

(B) For the purposes of calculating the water capacity fee, a single-family residence shall be considered one "equivalent dwelling unit (EDU)," with one EDU being assigned a design flow of six hundred eighty gallons per day. For the purposes of calculating the maximum daily water use of a multifamily residence requesting connection to the water system, each within a multifamily residence unit will be assumed to be sixty-five percent of one single-family EDU. Single- and multifamily residences will pay water capacity fees according to subsection D of this section.

(C) All applications for building permits for nonresidential connections will be required to pay a water capacity fee proportional to the expected maximum daily water use of the connection, as calculated by the applicant and certified by the city manager, public works director or other designated staff. The applicant shall, using commonly accepted building and plumbing practices, demonstrate the average daily and maximum daily water use in gallons per day (gpd) for the connection to the water system. Nonresidential water capacity fees shall be calculated according to the cost per gpd detailed in subsection D.

(D) Water capacity fees shall be calculated according to the following schedule.

Single-family residence (one EDU) $12,462.00

Multifamily residence (0.65 EDU) $8,100.00

Commercial/industrial/public (per gpd) $18.33

(E) The city in its sole discretion may adopt revised water capacity fees based on the proportionate effects of inflation or changes to the cost of living. The Engineering News Record Construction Cost Index for the San Francisco region shall be used for adjusting said fees. Any such adjustment in accordance with this section may be approved by a resolution of the city council. (Res. 2009-76; Ord. 2008-01 § 1, 2008; Ord. 2007-09 § 1, 2007)

Ord. 2008-01 § 1, 2008

Ord. 2007-09 § 1, 2007

If, in the judgment of

the city manager or public works director, and after the final water capacity fee is established, any customer increases the demand on the water system capacity in a substantial and permanent way, due to changes in the size or nature of the building or premises previously permitted, the city shall charge and collect additional water capacity fees based upon the increased water use. The additional water capacity fee shall be established by computing the new number of EDUs in service at the connection, and then subtracting from that figure the number of EDUs originally purchased in accordance with Section 13.06.020.

Ord. 2008-01 § 1, 2008

Ord. 2007-09 § 1, 2007

(A) At the written request of the applicant, and with the approval by resolution of the city council, an applicant may enter into an agreement with the city for a revised water capacity fee upon finding of one or more of the following conditions:

(1) The project provides a needed public service to the city of American Canyon or its residents;

(2) The project provides a significant contribution of sales tax or transient occupancy tax to the city of American Canyon;

(3) Based on an independent economic analysis, a project water demand for an inside-the-city application for water service might vary by more than ten percent from anticipated water demand calculated in accordance with Table 13.06.020, including the addition of an allowance for unmetered water losses throughout the city's water system.

(B) Agreements for a revised water capacity fee shall be approved by a resolution of the city council.

(C) An applicant may enter into an agreement with the city to provide improvements to the city water system that are off-site to the project or oversized. In such an event, the applicant may be reimbursed the cost of such facility from water capital improvement funds, not to exceed that portion of the improvement considered off-site or oversized to the applicant's project.

(D) The city may require an applicant to construct oversize or off-site facilities as shown on the capital improvement program adopted by the city council, if the applicant's project increases the city's water system average-day annual demand by two percent or greater as determined by the city engineer. In such cases, the applicant shall be offered a credit against water connection fees in the amount of the estimated off-site or oversized facilities to applicant's project.

Ord. 2007-09 § 1, 2007

(A) All projects within the city conforming to city zoning as industrial and all projects within the unincorporated area of Napa County, for which the city provides water connections pursuant to Section 13.10.040 of this title, shall be subject to a limitation on water service if and when the project's average day annual demand for water exceeds six hundred fifty gallons per acre per day on any parcel. The average day annual demand shall include an allowance for unmetered water losses of the city system as determined by the city engineer. In such cases, the applicant shall mitigate the consumption above six hundred fifty gallons of water per acre per day, average annual demand, as provided in Section 13.10.040.

(B) The city shall monitor the annual average daily demand, and in increments more frequently than once a year as deemed appropriate by the city.

(C) The city's provision of water services to projects located outside city limits shall be governed by Chapter 13.10 of this title and applicable state law.

Ord. 2007-09 § 1, 2007

(A) The city council declares its intent to make any future changes in water capacity fees established in this chapter by setting forth the changes in a resolution duly adopted, and the adoption of such a resolution shall have the same force and effect as though the changes had been made by the adoption of an ordinance.

(B) The city may use capacity fees to advance funds to implement provisions of the annual city capital improvement program or to deal with short-term cash flow requirements.

Ord. 2007-09 § 1, 2007