Merced Municipal Code Ch. 15.36 Rates and Charges

A fund is hereby created to be known as the water fund. All revenues derived by the city from the sale of water or otherwise from the operation of waterworks or the provision of water service, within or without the boundaries of the city, shall be credited to the water fund.

(Prior code § 31.12 (part)).

The water fund is created for the purpose of providing a source of operational funds, capital outlay funds, debt service funds and incidental funds for the acquisition, construction, operation, maintenance, expansion and improvement of waterworks and a water distribution system in and near the city, including the retirement of revenue bonds issued for the acquisition thereof and the retirement of revenue bonds or other evidences of indebtedness issued for the improvement thereof.

(Prior code § 31.12 (part)).

Except as stated in this chapter, the water fund, once created, shall remain inviolate for the purpose for which it was created. No other use may be made of such fund, unless the use of such fund for some other purpose is authorized by the affirmative votes of a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted.

(Prior code § 31.12 (part)).

"Water fund," as the term is used in this chapter, applies only to those funds collected for the use or extension of the water system and shall not be construed to affect revenues derived from plumbing permit fees.

(Prior code § 31.13).

Unless otherwise indicated, starting July 1, 2022, all base water service rates and charges in this chapter shall be adjusted annually by an amount equal to the percent change in the All Urban Consumers Index, U.S. City Average (USCA), as supplied by the Bureau of Labor Statistics, unless or until such time new rates are set by the city council. The amount of such base water charge shall be computed as follows:

(Ord. 2269 § 4, 2006).

(Ord. No. 2380, § 2, 12-5-2011; Ord. No. 2382, § 1, 12-19-2011; Ord. No. 2496, § 1, 11-5-2018)

The base rate for metered water service per one hundred (100) cubic feet or fraction thereof is as follows:

A minimum base monthly fee will be charged as follows:

Minimum Base Monthly Fee

In addition, for each reduced pressure backflow preventer served from the same service connection, a base monthly fee for annual testing and inspection shall be paid as follows:

* Starting July 1, 2022, the base water service charge shall be adjusted annually based on a formula set forth in Section 15.36.045.

The new rates set forth in this section shall be implemented on January 1, 2019, with subsequent scheduled increases implemented on July first of each year.

(Ord. 2269 § 5 (part), 2006: Ord. 2095 § 1, 2002; Ord. 1752 § 18, 1990: Ord. 1723 § 2 (part), 1988: Ord. 1656 § 1 (part), 1987: Ord. 1486 § 2, 1983: prior code § 31.6(a)).

(Ord. No. 2397a, § 1, 11-6-2012; Ord. No. 2496, § 1, 11-5-2018)

A. Customers whose requirements may overburden the water system, or may require unreasonable investment in additional facilities, or may interfere with the supply to the existing customers, will not be supplied water under the schedule in Section 15.36.050. In such case, a special agreement will be required, under such terms as the conditions warrant.

B. If a meter is found to be out of order, the monthly charge shall be determined by the finance officer, based upon previous water consumption.

C. If a customer has more than one meter, a separate minimum charge will be made for each meter, as well as the amount registered for each meter. Compound meters, however, shall be considered as one meter.

(Ord. 1799 § 4, 1991: Ord. 1656 § 1 (part), 1987: prior code § 31.6(b), (c), (d), (e)).

The rate schedule includes a drought rate schedule, which will be implemented only during times of significant drought. This drought rate schedule will only go into effect in the event of a Level 3 drought declared by the city council.

Monthly Charges

(Ord. No. 2496, § 1, 11-5-2018)

Editor's note— Ord. No. 2496, § 1, adopted November 5, 2018, in effect, repealed § 15.36.070 and enacted a new § 15.36.070 as set out herein. Former § 15.36.070 pertained to flat rate—residence and church and derived from the Prior Code; Ord. 1486 § 5, 1983; Ord. 1656 § 1 (part), 1987; Ord. 1723 § 2 (part), 1988; Ord. 1752 § 21, 1990; Ord. 1799 § 3, 1991; Ord. 2095 § 2 (part), 2002; Ord. 2269 § 5 (part), 2006 and Ord. No. 2397a, adopted November 6, 2012.

The City of Merced provides water service to retail customers located outside of the city's jurisdictional boundaries and is authorized to receive a reasonable return on investment and risk for its delivery of services to non-owner customers. The water service rates includes the following outside the city surcharge:

Outside City Monthly Charge

(Ord. No. 2496, § 1, 11-5-2018)

A. For public fire hydrant service on private property, the per hydrant base charge is as follows:

B. 1.

For private fire protection service, the following base rates shall be applicable to all automatic fire sprinkler systems:

2. The applicant shall pay the cost of installing the fire sprinkler service.

3. The above rates are applicable only to fire sprinklers systems to which no connections for other than fire protection purposes are allowed, which are regularly inspected by the underwriters having jurisdiction, are installed according to the specifications of the city and are maintained to the satisfaction of the city.

4. If a distribution main of adequate size to serve a fire sprinkler system in addition to all other normal service does not exist in the street or alley adjacent to the premises to be served hereunder, a service main from the nearest existing main of adequate capacity will be installed by the city at the expense of the applicant.

5. The city may install, at the applicant's expense, the standard detector type meter approved by the board of fire underwriters for protection against theft, leakage, or waste of water.

6. The city will be required to supply only such water at such pressure as may be available from time to time as a result of the normal operation of the system. Customers may take water under this schedule only in case of fire or for purpose of periodical tests and inspections.

C. For service from fire hydrants, the following rates shall apply to water service furnished from fire hydrants for municipal, construction, and temporary usages:

1. For the city (internal service charge), flushing sewers and street sweepers shall be charged on a monthly basis $84.19*.

2. At the option of the city, a meter may be installed, at the applicant's expense, for service under this schedule.

3. Applicants for service under this schedule must obtain specific authority from the city prior to taking any delivery of water and shall use only the hydrants designed by the city.

* Starting July 1, 2022, the base water service charge shall be adjusted annually based on a formula set forth in Section 15.36.045.

The new rates set forth in this section shall be implemented on January 1, 2019, with subsequent scheduled increases implemented on July first of each year.

**Unless otherwise indicated, starting July 1, 2022, all base water service rates and charges in this chapter shall be adjusted annually by an amount equally to the percent change in the All Urban Consumer Index, U.S. Average (USCA), as supplied by the Bureau of Labor Statistics, unless or until such time new rates are set by the city council. The amount of such base water charge shall be computed as follows:

Capital Facility Charge Schedule

(Ord. 2269 § 5 (part), 2006: Ord. 2095 § 3, 2002; Ord. 1752 § 22, 1990: Ord. 1723 § 2 (part), 1988: Ord. 1656 § 1 (part), 1987: Ord. 1486 § 6, 1983: prior code § 31.8 (c-e)).

(Ord. No. 2397a, § 1, 11-6-2012; Ord. No. 2496, § 1, 11-5-2018)

Whenever any person wishes to connect any building or premises to the city water system, he shall first make application to the city engineer for a water connection permit. If a water connection permit is issued, the city engineer shall cause such connection to be made with the city water main and extended to the point of service as described in Section 15.32.030.

(Ord. 2167 § 6, 2004: Ord. 1174 § 2 (part), 1976: prior code § 31.4(a)).

When an existing water service connection is replaced by one of a larger size, or where it is necessary to relocate a water service for the convenience of a customer, or where relocation is required because the customer's construction will interfere with the operation or maintenance of the service connection, the charge for such replacement or relocation shall be the cost for labor, equipment and materials as the same is determined by the city engineer.

(Ord. 1174 § 2 (part), 1976: prior code § 31.4(b)).

The size of the tap and service connection installed by any customer shall be as the city engineer may designate.

(Ord. 1174 § 2 (part), 1976: prior code § 31.4(c)).

A. Five or More Lots. The city will not provide water distribution lines or connection services to newly developing subdivisions of five or more lots. The subdivider or developer will arrange to have the water services installed at his expense upon furnishing proof that the work will be done in its entirety by a duly licensed and competent person in accordance with city standards.

B. Less than Five Lots. The city may elect, at its option, to install water services to newly developing subdivisions of four lots or fewer. Such installations will be accomplished at the expense of the developer or applicant.

(Ord. 1174 § 2 (part), 1976: prior code § 31.4(d)).

Water service to individual lots will be provided by the city at the expense of the applicant.

(Ord. 1174 § 2 (part), 1976: prior code § 31.4(e)).

The city council may, by ordinance or resolution, establish the costs to be charged for installation of water service by the city. If no such ordinance or resolution is in effect, or if the ordinance or resolution in effect does not cover a given size, class or type of water connection, the charge for water service installation performed by the city shall be determined by the city engineer, based upon actual costs, including, but not limited to, labor, materials, and equipment. In those instances where, in the judgment of the city engineer, the best interest of the city would be served, the applicant for water service connection may be required to deposit with the city the estimated cost of such installation, prior to performance of such installation.

(Ord. 1174 § 2 (part), 1976: prior code § 31.4(f)).

A. Each property owner who applies for connection of any building or premises to the city water system, or who applies for replacement of an existing water service connection with one (1) of larger size, shall, prior to issuance of the permit for such connection or replacement, pay to the city a major water facilities charge, based upon the size of the water service required for such building or premises. Each quarter, the major water facilities charge shall be adjusted by an amount equal to the percent change in the All Urban Consumers Index, U.S. City Average (USCA), as supplied by the Bureau of Labor Statistics.

The amount of such major water facilities charge shall be computed as follows:

*Base year index (January 2004)

Base Water Facilities Charge

Fire Flow Charge:

Fire flow charge will be calculated for any extra fire flow required above the standard (one-inch meter) fire flow requirement of one thousand five hundred (1,500) gpm for two (2) hours. The fire flow charge will be based on the incremental increase in the fire flow requirements above the "standard" (one-inch meter). The incremental fire flow charge will be calculated as follows:

[Figure]

B. In the case of replacement of an existing water service connection with one (1) of larger size, credit shall be given against the major water facilities charge for the amount which was paid for the smaller connection, or would have paid therefore if this section had been in effect at the time such smaller connection was applied for provided the service is actually removed from the system.

C. All funds collected pursuant to this section shall be deposited in the water fund.

(Ord. 2167 § 7, 2004: Ord. 2152 § 6, 2004: Ord. 1745 § 1, 1989: Ord. 1486 § 7, 1983: Ord. 1206 § 1, 1978: Ord. 1196 § 1, 1977: prior code § 31.4.5).

(Ord. of 2386, § 2, 4-16-2012; Ord. No. 2397a, § 1, 11-6-2012; Ord. No. 2496, § 1, 11-5-2018)