CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

AN ORDINANCE relating to rates and charges for water services of Seattle Public Utilities; authorizing withdrawals from the Water Fund Revenue Stabilization Subfund; revising water rates and charges, and credits to low-income customers; and amending Seattle Municipal Code Sections 21.04.430, 21.04.440, and 21.76.040.

WHEREAS, the City Council has adopted a six-year Strategic Business Plan which guides utility investments, service levels, and rate paths through 2023; and

WHEREAS, the adopted 2018-2023 Strategic Business Plan includes increases in the capital and operating requirements of the Water Fund in response to environmental and infrastructure concerns, with a resulting increase in revenue requirements; and

WHEREAS, Ordinance 121761, passed on March 28, 2005, established a minimum balance for the Water Fund Revenue Stabilization Subfund of $9,000,000, and permits funds in excess of this amount to be used to meet operating expenses, pay Capital Improvement Program expenditures, or to comply with financial policies; and

WHEREAS, the current balance in the Water Fund Revenue Stabilization Subfund exceeds the minimum balance, and the adopted Strategic Business Plan directs that a portion of the excess funds be withdrawn to reduce the Water Fund revenue requirement and thereby reduce otherwise necessary increases in water rates; and

WHEREAS, SPU has recently completed a rate study incorporating guidance of the adopted Strategic Business Plan; and

WHEREAS, the water rates authorized by this ordinance are consistent with the general rate-making policies set forth in Resolution 30742, adopted March 28, 2005; and

WHEREAS, credits for qualified low-income customers should be revised when water rates change; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. In order to lessen the increases in water rates necessary to meet the revenue requirements of the Water Fund, the General Manager/Chief Executive Officer (GM/CEO) of Seattle Public Utilities is authorized, while the rates authorized by this ordinance are in effect, to make one or more withdrawals of funds up to a cumulative maximum of $19,000,000 from the Revenue Stabilization Subfund to Operating Cash. The GM/CEO may withdraw funds in order to meet operating expenses, pay Capital Improvement Program expenditures, or comply with the Water Fund financial policies adopted by the City Council, so long as the balance of the Revenue Stabilization Subfund never falls below $14,700,000.

Section 2. Section 21.04.430 of the Seattle Municipal Code, last amended by Ordinance 124765, is amended as follows:

21.04.430 Rates inside The City of Seattle (( . ))

All water used inside the City for domestic and commercial purposes shall be supplied by meter only at the following rates and charges. 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. The additional cost of funding the Revenue Stabilization (( SubFund )) Subfund shall be specifically indicated in the billings. Seattle Public Utilities shall continue to incorporate arts funding into its capital projects constructed within the municipal boundaries of the City at the one percent level ; (( , )) however , the department shall not be permitted to fund any such program from the Water Fund on any capital project outside the City limits.

A.  Residential. The rates for metered water supplied to single-family and duplex residences within the City in one month, or fractional part thereof, shall be based on a commodity charge and a base service charge, in accordance with the following schedules:

Schedule WIR. Schedule WIR is for all single-family and duplex residences within the City except those billed on Schedule WIRM.

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

Schedule WIRM. Schedule WIRM is for single-family and duplex residences within the City in which one or more persons require medical life support equipment which uses mechanical or artificial means to sustain, restore or supplant a vital function, and which uses a disproportionate amount of water.

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge Per Month

1.  Master Metered Residential Development: Multiple Parcels. 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, shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge Per Month

B.  General Service. The rates for metered water supplied to houseboats and premises other than single-family, duplex residences, and master-metered residential developments within the City in one month, or fractional part thereof, shall be based on a commodity charge and a base service charge in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

C.  Fire Service

1.  Fire Hydrants. The rates for fire hydrants, including test water and water used to extinguish fires, shall be deemed service charges and shall be for any one year, or fractional part thereof, as follows:

2.  Metered (( Fire Services )) fire services . The rates for metered water services supplied for fire protection purposes exclusively, including a monthly allowance for test water and water used to extinguish fires, shall be deemed service charges and shall be for any one month, or fractional part thereof, as follows:

Service Charge (( Per )) per Month

For each 100 cubic feet of water consumption in excess of the monthly allowance described below, the charge shall be an additional $20.00.

Section 3. Section 21.04.440 of the Seattle Municipal Code, last amended by Ordinance 124765, is amended as follows:

21.04.440 Rates outside The City of Seattle (( . ))

Except as otherwise provided in this (( chapter )) Chapter 21.04 , the rates and charges for water supplied to customers located outside The City of Seattle shall be as specified in this (( section )) Section 21.04.440 . 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.

A.  Residential. The rates for metered water supplied to single-family and duplex residences except for those located in the (( City )) cities of Shoreline and (( the City of )) Lake Forest Park and those served under the terms of a wholesale contract, in one month, or fractional part thereof, shall be based on a commodity charge and a base service charge, in accordance with the following schedules:

Schedule WOR. Schedule WOR is for all single-family and duplex residences except those billed on Schedule WORM.

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

Schedule WORM. Schedule WORM is for single-family and duplex residences in which one or more persons require medical life support equipment which uses mechanical or artificial means to sustain, restore, or supplant a vital function, and which uses a disproportionate amount of water.

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

1.  Master (( Metered Residential Developments )) metered residential developments . 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, shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

B.  General (( Service )) service . The rates for metered water supplied to premises other than single-family, duplex residences, and master-metered residential developments (except for those located in the (( City )) cities of Shoreline and (( the City of )) Lake Forest Park and those served under the terms of a wholesale contract) in one month, or fractional part thereof, shall be based on a commodity charge, and a base service charge in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

C.  Fire (( Service )) service

1.  Fire (( Hydrants )) hydrants . Except for as provided in subsection 21.04.440.D, the rates for fire hydrants, including test water and water used to extinguish fires, shall be deemed service charges and shall be for any one year, or fractional part thereof, as follows:

2.  Metered (( Fire Services )) fire services . The rates for metered water services supplied for fire protection purposes exclusively, including a monthly allowance for test water and water used to extinguish fires, shall be deemed service charges and shall be for any one month, or fractional part thereof, as follows:

Service Charge (( Per )) per Month

For each 100 cubic feet of water consumption in excess of the monthly allowance described below, the charge shall be an additional $22.80.

D.  Rates (( Inside the City )) inside the cities of Shoreline and (( the City of )) Lake Forest Park. Rates and charges in this subsection 21.04.440.D apply to retail customers of Seattle Public Utilities located within the (( City )) cities of Shoreline and (( the 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:

1.  (( City of )) Shoreline and (( the City of )) Lake Forest Park (( Residential )) residential . Except for Shoreline and (( the City of )) Lake Forest Park master metered residential developments, the rates for metered water supplied to single-family and duplex residences in one month, or fractional part thereof, shall be based on a commodity charge and a base service charge, in accordance with the following schedules:

Schedule s (( WAR )) WARSL and Schedule WARLF . Schedule s (( WAR is )) WARSL and WARLF are for all single-family and duplex residences except those billed on Schedule s (( WARM )) WARMSL and WARMLF .

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

Schedule s (( WARM )) WARMSL and WARMLF . Schedule s (( WARM is )) WARMSL and WARMLF are for single-family and duplex residences in which one or more persons require medical life support equipment (( which )) that uses mechanical or artificial means to sustain, restore, or supplant a vital function, and which uses a disproportionate amount of water.

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

2.  (( City of )) Shoreline and (( City of )) Lake Forest Park (( Master Metered Residential Developments )) 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, 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 Chapter 82.16 RCW directly to the State of Washington , shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

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 Chapter 82.16 RCW directly to the State of Washington , shall be based on a commodity charge and a base service charge, in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

3.  (( City of )) Shoreline and (( the City of )) Lake Forest Park (( General Service )) general service . The rates for metered water supplied to premises other than single-family, duplex residences, and master-metered residential developments within the (( City )) city of Shoreline in one month, or fractional part thereof, shall be based on a commodity charge, and a base service charge in accordance with the following schedule:

Commodity Charge (( Per )) per 100 Cubic Feet

Base Service Charge (( Per )) per Month

4.  (( City of )) Shoreline and (( the City of )) Lake Forest Park (( Fire Service Metered Fire Services )) metered fire services . The rates for metered water services supplied for fire protection purposes exclusively, including a monthly allowance for test water and water used to extinguish fires, shall be deemed service charges and shall be for any one month, or fractional part thereof, as follows:

Service Charge (( Per )) per Month

For each 100 cubic feet of water consumption in excess of the monthly allowance described below, the charge shall be an additional $24.30.

* * *

Section 4. Subsection 21.76.040.A.3 of the Seattle Municipal Code, last amended by Ordinance 125262, is amended as follows:

21.76.040 Rate discounts

A.  Drainage, wastewater, and water. Certified low-income residential utility customers (“Certified customers”) will receive rate discounts (or credits) in the following amounts:

* * *

3.  Water. Certified customers billed directly for Seattle Public Utilities water services shall receive a rate discount equal to 0.5 times the total current commodity and base service charges. Certified customers who pay for water services indirectly through their rent shall receive the following rate credits based on dwelling type and consistent with Section 21.76.050:

Section 5. 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 6. 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.

Passed by the City Council the ________ day of _________________________, 2017, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2017.

____________________________________

President ____________ of the City Council

Approved by me this ________ day of _________________________, 2017.

____________________________________

Tim Burgess, Mayor

Filed by me this ________ day of _________________________, 2017.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)