(A) The rates charged for all water supplied by the city shall be established by ordinance of the city council. Each customer receiving water service is liable for payment for such service at the rates so established.
(B) (1) Pursuant to Cal. Gov’t Code, Section 53756, the city may adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water and adjustments for inflation, for a period of five years. The amount of automatic adjustments (pass-through charges) to account for changes in wholesale water costs will be based directly on the incremental difference in costs that the city will incur from every third party water supplier (including but not limited to United Water Conservation District and Calleguas Municipal Water District) as a result of increases or decreases in the amount such water suppliers charge the city. Any such adjustments will only be made if the increases or decreases are not already reflected in the schedule of charges then in effect. The pass-through cost applies only to the volumetric usage charge component of the water used and will be assessed on all volumetric us in hundred cubic feet (“HCF”) used by a customer. A notice of at least 30 days will be provided to customers before any such adjustment will take effect.
(2) The automatic pass-through charge is calculated as follows:
Pass-through rate ($/HCF) = (Proposed FY water purchase costs - FY 2022-2023 water purchase costs)/(Calendar year water use)
July 1, 2023 | July 1, 2024 | July 1, 2025 | July 1, 2026 | July 1, 2027 |
9.5% | 9.5% | 5.0% | 5.0% | 5.0% |
(D) When the city council declares the existence of a water shortage condition pursuant to section 22-154 of the city code, the water rates and charges provided in sections 22-61 through 22-66 of the city code that are based on water use shall be adjusted to reflect the level of severity and corresponding mandatory water conservation percentage reflected in the water shortage condition declaration. For example, if the council declares a Stage 2 water shortage condition with a mandatory water use reduction goal of 20% then the rates provided in sections 22-61 through 22-66 of the city code that are based on water use shall be concurrently adjusted upward by a drought rate calculation percentage, which is 9.4% for a 20% reduction. This drought rate adjustment may be initiated by resolution of the city council after a declaration of water shortage condition. The drought rate adjustment shall terminate as of the date of the termination of that water shortage condition declaration.
(1) The drought rate adjustments, based on the stage of the water shortage condition are as follows:
Stage 1 up to 10% | 3.9% increase |
Stage 2 up to 20% | 9.4% increase |
Stage 3 up to 30% | 15.4% increase |
Stage 4 up to 40% | 26.2% increase |
Stage 5 up to 50% | 35.3% increase |
Stage 6 up to 60% | 58.7% increase |
(`64 Code, Sec. 33-42) (Ord. No. 1771, 2306, 2490, 2921, 3028)