CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

AN ORDINANCE relating to water services of Seattle Public Utilities; revising facilities charges for service to wholesale customers, and amending Seattle Municipal Code Chapter 21.04.440 in connection therewith.

WHEREAS, Seattle Public Utilities provides wholesale water service to many water utilities surrounding Seattle (Wholesale Customers) under the provisions of various long-term water supply contracts; and

WHEREAS, the provisions of the Full and Partial Requirements Contract for Supply of Water (Contracts) require Wholesale Customers to pay a new service fee (Facility Charge) at the time they connect a new retail customer to their respective retail water distribution systems; and

WHEREAS, the Facilities Charge is intended as a mechanism for growth to pay for growth, and therefore the charge varies by connection size as a proxy for customer demand; and

WHEREAS, the requirement for residential sprinkler systems varies across the wholesale service area, impacting the minimum connection size new retail customers install sometimes resulting in Facilities Charges based on fire sprinkler requirements rather than customer demand; and

WHEREAS, the Operating Board of the Seattle Regional Water Supply System has expressed a preference to address this by combining the Facilities Charge for the smallest two connection sizes; and

WHEREAS, the updated Facilities Charge has been calculated as the weighted average of the two smallest connection sizes and is therefore revenue neutral to Seattle; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Subsection 21.04.440 E.2 of the Seattle Municipal Code is amended as follows:

SMC 21.04.440 Rates outside City.

* * *

E. Wholesale Customers--Commodity and Base Charges

* * *

2. Full or Partial Requirements Contracts. The rate to be charged to wholesale customers being served under the provisions of contracts substantially in the form of the Full and Partial Requirements Contracts for the Supply of Water that were authorized by Ordinance 120362 or 123559 ("Full or Partial Requirements Contract") shall consist of a commodity charge, surcharges, discounts, and facilities charges as follows:

The following surcharges apply to each wholesale customer that has agreed to them in a contract substantially in the form of the Full or Partial Requirements Contracts:

In addition, each wholesale customer served under a contract substantially in the form of the Full or Partial Requirements Contracts that requires payment of facilities charges based on each new metered service connection installed within its service area shall pay the facilities charges according to the following schedule:

(( Effective January 1, 2011: ))

Meter Size Facilities Charge

3/4 inch and smaller $ 783.00

1 inch 1,566.00

1 1/2 inch 3,915.00

2 inch 6,264.00

3 inch 17,226.00

4 inch 24,273.00

6 inch 51,678.00

8 inch 87,696.00

10 inch 132,327.00

12 inch and larger 186,354.00

Effective January 1, 2013:

Meter Size Facilities Charge

1 inch and smaller $ 877.00

1 1/2 inch 3,915.00

2 inch 6,264.00

3 inch 17,226.00

4 inch 24,273.00

6 inch 51,678.00

8 inch 87,696.00

10 inch 132,327.00

12 inch and larger 186,354.00

Section 2. This ordinance shall take effect and be in force 30 days from and 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.

Passed by the City Council the ____ day of _________, 2012, and signed by me in open session in authentication of its passage this _____ day of __________, 2012.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2012.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of _________, 2012.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Regina Carpenter SPU Facilities Charges ORD September 8, 2012 Version #1