CITY MANAGER' S REPORT ITEM 5. 4
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
ITEM: PUBLIC HEARING ( PUBLISHED NOTICE)
ORDINANCE TO ADOPT AMENDMENTS TO THE
LATHROP MUNICIPAL CODE ( LMC) TO UPDATE
CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER
13.6 SEWER SERVICE SYSTEM AND CHAPTER
13. 20 UTILITY RATES AND CHARGES IN TITLE 13,
PUBLIC SERVICES.
RECOMMENDATION: City Council to Consider the Following:
1. Hold a Public Hearing; and
2. First Reading and Introduction of an
Ordinance to Adopt Amendments to the
Lathrop Municipal Code ( LMC) to Update
Chapter 13. 04 Water Service System, Chapter
13.6 Sewer Service System and Chapter
13. 20 Utility Rates and Charges in Title 13,
Public Services, including:
Chapter 13. 04 (Water Service System):
Add ( D) to 13. 04. 155 to read " A water
service customer who presents a current
military identification card or veterans
identification card shall receive a 10%
reduction in their monthly service charge
by meter size. The commodity rate shall
not be reduced."
Chapter 13.6 (Sewer Service System):
Add ( D) to 13.6. 255 to read " A sewer
service customer who presents a current
military identification card or veterans
identification card shall receive a 10%
reduction in their flat monthly service
charge."
Chapter 13. 20 (Utility Rates and Charges):
Revise 13. 20. 020 (E) to read " A fee [ of]
Thirty- five and no/ 100ths ($35. 00) dollars
shall be charged for restoring water
service to the same user when it is
discontinued for failure to pay a delinquent
account."
Chapter 13. 20 (Utility Rates and Charges):
Add ( F) to 13. 20. 020 to read " In the event
it is necessary to lock a water meter
because of a delinquency and the lock is
subsequently found damaged or cut, a fee
of Fifty and no/ 100ths ($50. 00) dollars
shall be charged in addition to the fee set
forth in subsection ( E) of this section.
CITY MANAGER' S REPORT Page 2
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) ORDINANCE TO ADOPT
AMENDMENTS TO THE LATHROP MUNICIPAL CODE ( LMC) TO UPDATE CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER 13.6 SEWER SERVICE SYSTEM AND CHAPTER 13. 20 UTILITY RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
SUMMARY:
On September 9, 2024 the City Council received a referral to discuss the potential of the City reducing late fees for utility bills and the possibility of offering a discount for veterans. At that meeting staff was directed to evaluate areas where the fees could potentially be reduced and to develop a veteran discount program. The proposed Municipal Code Text Amendment would update Sections 13. 04 and 13.6 of the Lathrop Municipal Code ( LMC) to include language that would provide current military personnel and veterans presenting proper documentation a 10% reduction to the fixed meter charge for water and a 10% reduction in the flat monthly service charge for wastewater. The 10% reduction for current military and veterans aligns with the City' s support of the military community and aims to extend our gratitude to those who have served or are currently serving our country in the US armed forces.
The proposed Municipal Code Text Amendment to update Section 13. 20 of the Lathrop Municipal Code ( LMC) would revise the fee currently charged of $ 30 for suspension/ termination of services and $ 30 for service reconnection to a one- time charge of $35 to restore services to the same user when it is discontinued for failure to pay a delinquent account. Staff also compared the City' s utility fees to surrounding agencies and found that the City lacked a cut lock fee to recuperate costs associated with the physical locks and utility staff time to reinspect meter boxes that have been locked due to the delinquency and the lock is subsequently found damaged or cut.
The proposed Municipal Code Text Amendments, if approved, will also establish a 50 fee for locks found to be damaged or cut.
BACKGROUND:
On September 9, 2024 the City Council received a referral to discuss the potential of the City reducing late fees for utility bills and the possibility of offering a discount for veterans. At that meeting staff was directed to evaluate areas where the fees could potentially be reduced and to develop a veteran discount program. The proposed Municipal Code Text Amendment would update Sections 13. 04 and 13.6 of the Lathrop Municipal Code ( LMC) to include language that would provide current military personnel and veterans presenting proper documentation a 10% reduction to the fixed meter charge for water and a 10% reduction in the flat monthly service charge for wastewater. This reduction would apply to the service charge but would not affect the commodity rate. The 10% reduction for current military and veterans aligns with the City' ssupport of the military community and aims to extend our gratitude to those who have served or are currently serving our country in the US armed forces.
CITY MANAGER' S REPORT Page 3
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) ORDINANCE TO ADOPT
AMENDMENTS TO THE LATHROP MUNICIPAL CODE ( LMC) TO UPDATE CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER 13.6 SEWER SERVICE SYSTEM AND CHAPTER 13. 20 UTILITY RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
The proposed Municipal Code Text Amendment to update Section 13. 20 of the Lathrop Municipal Code ( LMC) would revise the fee currently charged of $ 30 for suspension/ termination of services and $ 30 for service reconnection to a one- time charge of $ 35 to restore services to the same user when it is discontinued for failure to pay a delinquent account. Staff also compared the City' sutility fees to surrounding agencies and found that the City lacked a cut lock fee to recuperate costs associated with the physical locks and utility staff time to reinspect meter boxes that have been locked due to the delinquency and the lock is subsequently found damaged or cut.
The proposed Municipal Code Text Amendments, if approved, will also establish a 50 fee for locks found to be damaged or cut.
Staff looked at the City' s late fee structure and compared it to surrounding agencies.
The City' s current late charges strike a balance between encouraging on -time payments and maintaining a fair and customer -friendly approach. The penalty fee structure aims to incentivize prompt payments without overly burdening customers, while still covering the costs associated with late payments.
The City' s utilities operate as Enterprise funds that account for city operations, which are financed and operated in a manner similar to private enterprise. User charges and impact fees recover costs of providing service to the public. Enterprise funds are established to account for operations of the self- supporting municipal water and wastewater service. Services are rendered based on a Proposition 218 approved rate structure. Due to the stipulations of Proposition 218 ( California' sRight to Vote on Taxes) agencies have concluded that water affordability programs or discount programs cannot use rate revenue as that would be a subsidy from one customer class to another and, therefore, deemed illegal.
The proposed Municipal Code Text Amendment, if approved, will modify the following Chapter( s) and Section( s) of the LMC. A notice of the Public Hearing was advertised in the Manteca Bulletin newspaper on October 1, 2024.
Proposed Amendments:
CHAPTER 13 PUBLIC SERVICES
13. 04. 155 Payment assistance program -Water service.
Add:
D. A water service customer who presents a current military identification card or veterans identification card shall receive a 10% reduction in their monthly service charge by meter size. The commodity rate shall not be reduced.
13.6. 255 Payment assistance program - Sewer service.
Add:
CITY MANAGER' S REPORT Page 4
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) ORDINANCE TO ADOPT
AMENDMENTS TO THE LATHROP MUNICIPAL CODE ( LMC) TO UPDATE CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER 13.6 SEWER SERVICE SYSTEM AND CHAPTER 13. 20 UTILITY RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
D. A sewer service customer who presents a current military identification card or veterans identification card shall receive a 10% reduction in their flat monthly service charge.
13. 20. 020 Deposits for utility service -Termination, suspension and reconnection fees.
Remove / Add:
E.
of c
that hate bccn suspcndcd, the followin .
Suspcnsion/ tcrmination of scrviccs $ 30. 00
crvicc connection $ 30. 00
Add:
A fee [ of] Thirty- five and no/ 100ths ($35. 00) dollars shall be charged for restoring water service to the same user when it is discontinued for failure to pay a delinquent account.
F. In the even it is necessary to lock a water meter because of a delinquency and the lock is subsequently found damaged or cut, a fee of Fifty and no/ 100ths ($50. 00) dollars shall be charged in addition to the fee set forth in subsection ( E) of this section.
REASON FOR RECOMMENDATION:
Staff recommends that the City Council consider the proposed Municipal Code Text Amendments to establish the discount program for current military personnel and veterans. Staff also recommends Council amend the charges for restoring water service and establish a fee for locks found to be damaged or cut.
FISCAL IMPACT:
Funds collected through late fees and disconnect/ reconnect fees are the sole source of funding for the City' s proposed veteran assistance program. Proposition 218 does not allow rate revenue to be used for these types of rate reduction programs. Late payments and delinquency charges are separate fees exempt from the requirements of Proposition 218. The proposed municipal code amendments will have the following fiscal impacts; the introduction of a 10% reduction in the monthly water and sewer service charges for current military personnel and veterans will result in a decrease in revenue, but will be fully funded through late fee penalties received.
CITY MANAGER' S REPORT Page 5
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) ORDINANCE TO ADOPT
AMENDMENTS TO THE LATHROP MUNICIPAL CODE ( LMC) TO UPDATE CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER 13.6 SEWER SERVICE SYSTEM AND CHAPTER 13. 20 UTILITY RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
The reduction of the restoration fee from $ 60 to $ 35, will reduce revenue from delinquent account reconnections. However, this impact is anticipated to be manageable, as the fee is designed to cover the actual costs of service restoration.
The lower fee aligns with state law while maintaining the City' s ability to recoup its costs for restoring water services.
The implementation of a $ 50 fee for damaged or cut locks is expected to offset the costs incurred by the City for repairing or replacing tampered meters and locks. This fee will provide a revenue stream to cover repair expenses, ensuring that the City is not burdened with additional costs from meter tampering. It will also serve as a deterrent, potentially reducing future incidents and further minimizing repair costs.
ATTACHMENTS:
A. Ordinance Adopting Amendments to the Lathrop Municipal Code ( LMC) to update Chapter 13. 04 "Water Service System", Chapter 13.6 "Sewer Service System and Chapter", 13. 20 "Utility Rates and Charges" in Title 13, Public Services." Modify the Language to Revise Fees and Include Current Military and Veterans to Receive Rate Reduction
CITY MANAGER' S REPORT Page 6
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) ORDINANCE TO ADOPT
AMENDMENTS TO THE LATHROP MUNICIPAL CODE ( LMC) TO UPDATE CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER 13.6 SEWER SERVICE SYSTEM AND CHAPTER 13. 20 UTILITY RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
APPROVALS:
o• •ale Bulsara- Popal
Customer Service Supervisor
Cari Jam
Director • f Fi ance
ivAleozy
Date
10, 44W41
Date
10 / - 7 I
Z a2q
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
fv• a .24
Stephen J. Salvatore Date
City Manager
ORDINANCE NO. 24 -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP TO AMEND THE LATHROP MUNICIPAL CODE ( LMC) TO UPDATE CHAPTER 13. 04 WATER SERVICE SYSTEM, CHAPTER 13.6 SEWER SERVICE SYSTEM AND CHAPTER 13. 20 UTILITY RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
WHEREAS, this Municipal Code Text Amendment intends to update Sections
13. 04 and 13.6 of the Lathrop Municipal Code ( LMC) to include language that would provide current military personnel and veterans presenting proper documentation a 10% reduction to the fixed meter charge for water and a 10% reduction in the flat monthly service charge for wastewater; and WHEREAS, the 10% reduction for current military and veterans aligns with the City' s support of the military community and aims to extend gratitude to those who have served or are currently serving in the US armed forces; and WHEREAS, this Municipal Code Text Amendment to update Section 13. 20 of the Lathrop Municipal Code ( LMC) intends to revise the fee currently charged of $30 for suspension/ termination of services and $ 30 for service reconnection to a onetime charge of $ 35 to restore services to the same user when it is discontinued for failure to pay a delinquent account; and
WHEREAS, the proposed Municipal Code Text Amendment also establishes a 50 fee for locks found to be damaged or cut; and
WHEREAS, proper notice of the public hearing held on October 14, 2024 was given in all respects as required by law; and
WHEREAS, the City Council of the City of Lathrop has duly considered all written evidence and oral testimony presented during the October 14, 2024 public hearing.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LATHROP, based on substantial evidence in the administrative record of proceedings and pursuant to its independent review and consideration, does hereby approve the Lathrop Municipal Code amendments as outlined in the staff report dated October 14, 2024 and incorporated by reference herein.
Section 1.
Amendments to the Lathrop Municipal Code ( LMC) to Update Chapter 13. 04 Water Service System, Chapter 13.6 Sewer Service System and Chapter 13. 20 Utility Rates and Charges in Title 13, Public Services, including:
Chapter 13. 04 (Water Service System): Add ( D) to 13. 04. 155 to read A water service customer who presents a current military
Attachment " A"
identification card or veterans identification card shall receive a 10% reduction in their monthly service charge by meter size. The commodity rate shall not be reduced."
Chapter 13.6 (Sewer Service System): Add ( D) to 13.6. 255 to read A sewer service customer who presents a current military identification card or veterans identification card shall receive a 10% reduction in their flat monthly service charge."
Chapter 13. 20 (Utility Rates and Charges): Revise 13. 20. 020 (E) to read " A fee [ of] Thirty- five and no/ 100ths ($35. 00) dollars shall be charged for restoring water service to the same user when it is discontinued for failure to pay a delinquent account."
Chapter 13. 20 (Utility Rates and Charges): Add ( F) to 13. 20. 020 to read " In the event it is necessary to lock a water meter because of a delinquency and the lock is subsequently found damaged or cut, a fee of Fifty and no/ 100ths ($50. 00) dollars shall be charged in addition to the fee set forth in subsection ( E) of this section.
Section 2.
This Ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the City or any officer or employee thereof a mandatory duty of care toward persons and property within or without the city so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. Severability
If any section, subsequent subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, subdivision, paragraph, sentence, clause or phrase.
Section 4. Effective Date
This Ordinance shall take legal effect 30 days from and after the date of its passage.
Section 5. Publication
Within fifteen days of the adoption of this Ordinance, the City Clerk shall cause a copy of this Ordinance to be published in full accordance with Section 36933 of the Government Code.
Attachment " A"
THIS ORDINANCE was introduced at a regular meeting of the City Council of the City of Lathrop on the 14th day of October 2024, and was PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lathrop on the day of , 2024, by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
Attachment " A"
PAGE LEFT
INTENTIONALLY
BLANK