(A) The rates charged for all wastewater collected by the city shall be established by ordinance of the City Council. Each customer receiving wastewater service is liable for payment for such service at the rates so established.
(B) Pursuant to Cal. Gov’t Code section 53756, and after notice is provided as required by law, the adopted rates shall automatically adjust over a five-year period for inflation in the cost of operating the city’s wastewater system. If the actual inflation in natural gas and electricity rates paid by the city since the effective date of the rates exceeds the rate study’s cumulative forecast for inflation in utility costs for that same period, the rates will be automatically adjusted to recover the difference between the two. For example, if in year three of these rates the actual inflation in natural gas and electricity rates paid by the city since the effective date of the rates is 8.75% and the rate model estimates a cumulative increase of 7.5% over that same time period, then the inflation adjustment for that year would be 1.25%. On the other hand, if the actual inflation in natural gas and utility rates for this example time period is 7.5%, then no inflation adjustment would be made for that year as the actual inflation would equal the estimated inflation in the rate model. The city shall issue the adjustments no more than once per calendar year, and these adjustments will be effective at least 60 calendar days thereafter.
(C) When the City Council declares the existence of a water shortage condition pursuant to City Code Section 22-154, the wastewater treatment rates and charges provided herein 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 herein that are based on water use, shall be concurrently adjusted upward by the same percentage - 20%. This adjustment shall be initiated as of the effective date of the water shortage declaration and terminate as of the date of the termination of that water shortage declaration.
(Ord. No. 2917)