ORDINANCE _________________

AN ORDINANCE relating to rates and charges for water services of Seattle Public Utilities; revising water rates and charges for master metered residential developments outside the City of Seattle and amending Seattle Municipal Code Chapter 21.04.440.D in connection therewith.

WHEREAS, The Highlands is a nonprofit corporation and private residential neighborhood located in the City of Shoreline within the retail water service area of Seattle Public Utilities (SPU); and

WHEREAS, SPU has served The Highlands as a retail water customer through a master meter since 1971; and

WHEREAS, The Highlands operates and maintains a system to distribute the purchased water to its residents and receives revenues from its residents to pay the costs of the purchased water and the operationof its system; and

WHEREAS, the State of Washington Departement of Revenue (DOR) informed The Highlands in April 2013 that it is subject to the State Public Utilty Tax (PUT) on revenues received from its residents, and directed The Highlands to pay the PUT directly to DOR retroactively to January 2009 and going forward; and

WHEREAS, SPU had paid the PUT on the revenues it received from The Highlands for the same period and in December 2013, DOR confirmed that SPU could deduct the revenues it received from The Highlands from the revenues on which SPU pays the PUT, and refunded that portion of PUT paid by SPU since January 2009; which, will in turn, be refunded to The Highlands; and

WHEREAS, SPU's retail rates are structured to collect revenues to cover the costs of the PUT paid by SPU; and

WHEREAS, the retail rates and customer class definition under The City of Shoreline and City of Lake Forest Park Master Metered Residential Developments under Seattle Municipal Code (SMC) 21.04.440.D.2 needs to be revised to reflect that The Highlands now pays the PUT directly to DOR; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Seattle Municipal Code Section 21.04.440.D.2 is amended to read as follows:

21.04.440 Rates outside the City of Seattle

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D. Rates Inside the City of Shoreline and City of Lake Forest Park. Rates and charges in this SMC Subsection D apply to retail customers of Seattle Public Utilities located within the City of Shoreline and City of Lake Forest Park who are not served under the terms of a wholesale contract. Seasonal rates shall be prorated. For usage representing fractional parts of a month, the base service charge and all components of the commodity charge shall be prorated using a 30 day month. Except as otherwise provided in this chapter, the rates and charges for water supplied shall be as follows:

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2. City of Shoreline and City of Lake Forest Park Master Metered Residential Developments.

a. The rates for residential developments with master meters of 1 1/2 inches or larger, which operate and maintain their own distribution systems on private property , (( and )) which use water primarily to serve single-family, detached residences on at least two separate legal parcels , and which do not pay Public Utility Taxes under RCW 82.16 directly to the State of Washington shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

(( Effective January 1, 2011:

Commodity Charge Per 100 Cubic Feet

Summer (May 16th September 15th)

First 500 cubic feet per residence $4.83

Next 1300 cubic feet per residence 5.62

All over 1800 cubic feet per residence 14.31

Winter (September 16th May 15th)

All usage 4.39

Base Service Charge

Meter Size Monthly Charge

11/2 inch $ 25.10

2 inch 27.80

3 inch 102.70

4 inch 147.20

6 inch 181.00

8 inch 241.00

10 inch 360.00

12 inch 488.00

16 inch 579.00

20 inch 745.00

24 inch 935.00

Effective January 1, 2012:

Commodity Charge Per 100 Cubic Feet

Summer (May 16th September 15th)

First 500 cubic feet per residence $5.26

Next 1300 cubic feet per residence 6.25

All over 1800 cubic feet per residence 14.31

Winter (September 16th May 15th)

All usage 4.90

Base Service Charge

Meter Size Monthly Charge

11/2 inch $ 25.55

2 inch 28.30

3 inch 104.70

4 inch 150.10

6 inch 184.70

8 inch 241.00

10 inch 360.00

12 inch 488.00

16 inch 579.00

20 inch 745.00

24 inch 935.00

Effective January 1, 2013:

Commodity Charge Per 100 Cubic Feet

Summer (May 16th September 15th)

First 500 cubic feet per residence $5.74

Next 1300 cubic feet per residence 6.94

All over 1800 cubic feet per residence 14.31

Winter (September 16th May 15th)

All usage 5.46

Base Service Charge

Meter Size Monthly Charge

11/2 inch $ 26.00

2 inch 28.80

3 inch 106.70

4 inch 152.95

6 inch 188.15

8 inch 241.00

10 inch 360.00

12 inch 488.00

16 inch 579.00

20 inch 745.00

24 inch 935.00 ))

Effective January 1, 2014:

Commodity Charge Per 100 Cubic Feet

Summer (May 16th September 15th)

First 500 cubic feet per residence $6.22

Next 1300 cubic feet per residence 7.69

All over 1800 cubic feet per residence 14.31

Winter (September 16th May 15th)

All usage 6.05

Base Service Charge

Meter Size Monthly Charge

11/2 inch $ 26.50

2 inch 29.35

3 inch 108.70

4 inch 155.80

6 inch 191.70

8 inch 241.00

10 inch 360.00

12 inch 488.00

16 inch 579.00

20 inch 745.00

24 inch 935.00

b. The rates for residential developments with master meters of 1 1/2 inches or larger, which operate and maintain their own distribution systems on private property, which use water primarily to serve single-family, detached residences on at least two separate legal parcels, and which do pay Public Utility Taxes under RCW 82.16 directly to the State of Washington shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

Effective August 1, 2014:

Commodity Charge Per 100 Cubic Feet

Summer (May 16th September 15th)

First 500 cubic feet per residence $5.82

Next 1300 cubic feet per residence 7.20

All over 1800 cubic feet per residence 13.39

Winter (September 16th May 15th)

All usage 5.66

Base Service Charge

Meter Size Monthly Charge

11/2 inch $ 24.80

2 inch 27.45

3 inch 101.75

4 inch 145.80

6 inch 179.40

8 inch 225.55

10 inch 336.90

12 inch 456.70

16 inch 541.90

20 inch 697.25

24 inch 875.05

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Section 2. Prior ordinances of the City setting rates and charges for water

services of Seattle Public Utilities shall continue in effect with respect to obligations

incurred for water services rendered before the effective date of this ordinance, unless

and until such prior ordinances expire of their own terms or are superseded.

.

Section 3. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020 or August 1, 2014, whichever is later

Passed by the City Council the ____ day of _________, 2014 and signed by me in open session in authentication of its passage this _____ day of __________, 2014.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2014.

_________________________________

Edward B. Murray, Mayor

Filed by me this ____ day of _________, 2014.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Paul Hanna SPU Highlands Water Rates ORD April 29, 2014 Version 1