City of Crescent City Measure Q City Attorney s Impartial Analysis of Measure Q

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1 City of Crescent City Measure Q In order to financially support the operation, maintenance, capital improvements and debt service of the City s sewer utility, shall Ordinance No. 792 be adopted to amend Chapter 13.30, Sewer Charges, of Title 13 Public Services of the Crescent City Municipal Code to (1) implement a consumption-based rate structure and (2) to provide for a net revenue increase of 5% to the City each year for the next four fiscal years (FYE 2017 through 2020)? (A yes vote approves the ordinance; a no vote disapproves the ordinance.)yes No City Attorney s Impartial Analysis of Measure Q If approved by a majority of voters voting thereon, Measure Q would (1) implement a consumption-based sewer rate structure for the City s sewer utility customers, and (2) generate an overall revenue increase to the City of 5% per fiscal year for the next four fiscal years (FYE ). The consumption-based rate structure is designed so that those customers who discharge greater amounts of sewage into the system will pay more than those customers who discharge less sewage into the system. Currently, residential customers all pay the same flat rate regardless of the amount of sewage that they actually discharge. Under the proposed consumption-based rate structure, approximately 50% of residential customers will see their sewer bill decrease in the first year (FY ). Thereafter, rates for all customer classes will increase 5% per year for the next three fiscal years. Commercial customers are currently charged a flat rate for up to 5 CCF and then charged an additional fee per 1 CCF thereafter. Under the new structure, commercial customers and residential customers will be charged a fixed charge, then per 1 CF beginning with the first 1 CF. Consumption levels and therefore sewer bills will be based upon water consumption. Except for irrigation, the majority of the water that is used by customers ends up being discharged into the sewer system (toilets, sinks, showers, dishwashers, washing machines). Residential customer rates will be based on the customer s most recent winter average for the months November through February, when residences use the least amount of water for irrigation. Commercial customers will be charged based on actual monthly water usage each month. All customers have the option to install an irrigation meter to ensure that irrigation water is not being included in the consumption calculation for sewer service. Sewer customers without city water service and sewer customers without a winter average history will be charged for 5 CCF, an assumed residential winter average. Once a winter average has been established, the customer will be charged accordingly. If Measure Q is approved, the sewer fund is projected to be a financially stable and viable utility through FYE If Measure Q is not approved, the sewer fund is projected to be in a deficit position by FYE Following a successful referendum petition, Ordinance No. 792 was approved for placement on the ballot as a City Measure by the City Council of the City of Crescent City on June 20, If approved, Measure Q will become effective immediately. /s/ Martha D. Rice City Attorney The above statement is an impartial analysis of Measure Q. If you desire a copy of the measure, please call the elections official's office at (707) and a copy will be mailed at no cost to you.

2 FULL TEXT OF MEASURE Q ORDINANCE NO. 792 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING CRESCENT CITY MUNICIPAL CODE TITLE 13, PUBLIC SERVICES, CHAPTER 13.30, SEWER CHARGES, TO ADD SECTIONS THROUGH PERTAINING TO SEWER SERVICES CHARGES WHEREAS, the rates and fees paid by sewer service customers are currently insufficient to support the operation, maintenance, capital improvements and debt service on the sewer utility; WHEREAS, sewer service rates and fees are used to support the ongoing costs of operating, maintaining, repairing and improving the sewer collection system and sewer treatment plant, including the debt service; WHEREAS, the City has worked diligently over the past year with the State Water Resources Control Board to reduce the City s interest rate to 0% and thereby greatly reducing the necessary sewer rate increases to a tolerable level; and WHEREAS, the City of Crescent City finds it necessary to implement sewer service rate increases each year for the next four years to stabilize and support the sewer fund. NOW, THEREFORE, the City Council of the City of Crescent City does hereby ordain as follows: SECTION 1. Amendment. Chapter 13.30, Sewer Charges, of Title 13, Public Services, of the Crescent City Municipal Code is hereby amended by the addition of Sections through , inclusive, to read as follows: Sewer Charges on and after July 1, Effective July 1, 2016, the schedule of charges for Inside Residential Flat Rate $ $ Outside Residential Flat Rate $ $ Inside Light Commercial $ $ Outside Light Commercial $ $ Inside Heavy Commercial $ $ Outside Heavy Commercial $ $ Inside Multi-Family $ $ Outside Multi-Family $ $ Inside Sewer Only $ $ Outside Sewer Only $ $ Combined Inside Res/Light $ $ Combined Outside Res/Light $ $ Comb Inside Res (2) / Light $ $ Harbor Light Commercial $ $ Harbor Heavy Commercial $ $ 17.36

3 21118 Harbor Multi-Family $ $ Sewer Charges on and after July 1, Effective July 1, 2017, the schedule of charges for Inside Residential Flat Rate $ $ Outside Residential Flat Rate $ $ Inside Light Commercial $ $ Outside Light Commercial $ $ Inside Heavy Commercial $ $ Outside Heavy Commercial $ $ Inside Multi-Family $ $ Outside Multi-Family $ $ Inside Sewer Only $ $ Outside Sewer Only $ $ Combined Inside Res/Light $ $ Combined Outside Res/Light $ $ Comb Inside Res (2) / Light $ $ Harbor Light Commercial $ $ Harbor Heavy Commercial $ $ Harbor Multi-Family $ $ Sewer Charges on and after July 1, Effective July 1, 2018, the schedule of charges for Inside Residential Flat Rate $ $ Outside Residential Flat Rate $ $ Inside Light Commercial $ $ Outside Light Commercial $ $ Inside Heavy Commercial $ $ Outside Heavy Commercial $ $ Inside Multi-Family $ $ 8.42

4 21108 Outside Multi-Family $ $ Inside Sewer Only $ $ Outside Sewer Only $ $ Combined Inside Res/Light $ $ Combined Outside Res/Light $ $ Comb Inside Res (2) / Light $ $ Harbor Light Commercial $ $ Harbor Heavy Commercial $ $ Harbor Multi-Family $ $ Sewer Charges on and after July 1, Effective July 1, 2019, the schedule of charges for Inside Residential Flat Rate $ $ Outside Residential Flat Rate $ $ Inside Light Commercial $ $ Outside Light Commercial $ $ Inside Heavy Commercial $ $ Outside Heavy Commercial $ $ Inside Multi-Family $ $ Outside Multi-Family $ $ Inside Sewer Only $ $ Outside Sewer Only $ $ Combined Inside Res/Light $ $ Combined Outside Res/Light $ $ Comb Inside Res (2) / Light $ $ Harbor Light Commercial $ $ Harbor Heavy Commercial $ $ Harbor Multi-Family $ $ 8.85 SECTION 2. Classification. This ordinance is considered to be of a general and permanent nature and as such is classified as a code ordinance.

5 SECTION 3. Severability Clause. If any part, section, specific rate, phrase, or wording of this Ordinance or its application is deemed invalid by final action of a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 4. Effective Date. This ordinance shall be published once within fifteen days of its passage in a newspaper of general circulation in accordance with Government Code 36933, and it will become effective thirty days following its adoption. INTRODUCED by the City Council of the City of Crescent City on December 7, PASSED and ADOPTED on a motion by Council Member Murray, and seconded by Council Member Short, by the City Council of the City of Crescent City on this 7th day of March, 2016, by the following polled vote: AYES: Council Member Holley, Council Member Murray, Council Member Short, Pro Tem Inscore, Mayor Gastineau NOES: None ABSTAIN: None ABSENT: None ATTEST: /s/kymmie Scott, City Clerk /s/mayor Ron Gastineau APPROVED AS TO FORM: /s/martha Rice, City Attorney