RESOLUTION NO. __________ (N.C.S.)
A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF NEW INDUSTRIAL WASTEWATER RATES FOR FISCAL YEARS 2024 THROUGH 2028 WHEREAS, the City of Salinas owns and operates an Industrial Wastewater Collection and Conveyance System (IWCCS) for industries within its service area; and WHEREAS, the City of Salinas levies charges for industrial wastewater services to the users shown in Exhibit A of this Resolution pursuant to Section 36-27 of the Salinas Municipal Code; and WHEREAS, the City of Salinas has established an Industrial Waste Enterprise Fund to fund the operations, maintenance, and capital improvements needed for the IWCCS; and WHEREAS, the City of Salinas commissioned Carollo Engineers to determine the annual rate-based revenue requirements of providing industrial wastewater collection services to users of that service; and WHEREAS, the City Council has initiated proceedings to revise the industrial wastewater charges with an increase of 22% beginning on July 1, 2023, 22% beginning on July 1, 2024, 2% on July 1, 2025, 2% on July 1, 2026, and 2% on July 1, 2027; and WHEREAS, The proposed industrial wastewater rates implement a four-part rate structure consisting of the following components: 1) A fixed monthly service charge (flat fee), 2) A monthly allocation reservation charge which is based on monthly allocation, 3) A variable flow charge for the amount of wastewater contributed to the industrial waste system, and 4) A variable charge for the pounds of BOD in wastewater contributed; and WHEREAS, in accordance with Article XIID, §6 of the California Constitution, the Rate Study demonstrate that:
The revenues derived from the Industrial Wastewater Collector Fee do not exceed the funds required to provide industrial wastewater service. The rate is established at a level needed to fund on-going operation and maintenance of the IWCCS and to meet capital expenditures on the IWCCS; The revenues derived from the Industrial Wastewater Collector Fee will not be used for any purpose other than industrial wastewater services; The Industrial Wastewater Collector fee will not exceed the cost of providing industrial wastewater service attributable to each user; The Industrial Wastewater Collector Fee pays for provision of industrial wastewater service and not for general governmental services.
WHEREAS, mailed notification of the proposed change to the calculation of the Industrial Wastewater Collector Fee was sent to all users on February 17th, 2023, in compliance with the required 45-day notice and comment period in accordance with Proposition 218 (Article XIID, §6 of the California Constitution); and WHEREAS, this public hearing is conducted regarding the proposed changes to the Industrial Wastewater Collector Fee and all protests against the rates and other comments that will be considered.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SALINAS, consistent with the authority granted to the City Council:
The foregoing recitals are all true and correct and are incorporated herein by reference.
The City Council approves the rate structure shown in Exhibit B of this Resolution, which is incorporated herein by reference to be effective July 1, 2023, for an increase of 22% beginning on July 1, 2023, 22% beginning on July 1, 2024, 2% on July 1, 2025, 2% on July 1, 2026, and 2% on July 1, 2027 and implements a new four-part rate structure effective July 1, 2023.
PASSED AND APPROVED on this 4th day of April 2023 by the following vote:
AYES:
NOES: ABSENT: ABSTAIN:
APPROVED:
___________________________
Kimbley Craig, Mayor
ATTEST:
_____________________________
Patricia M. Barajas, City Clerk
EXHIBIT A
Industrial Wastewater Users List
Braga Fresh Foods
Central Coast Cooling
Cool Pacific
Dandy Cooling
Fresh Express, Inc. (2 accounts)
General Farms Investment
GreenGate Fresh, LLLP
Growers Ice Co.
International Paper Co.
Ippolito International
Mann Packing
Monterey Fish Co.
Nunes Cooling, Inc.
OrganicGirl
SmartWash Solutions
Taylor Farms California (4 accounts)
Taylor Farms Retail, Inc.
Titan Frozen Fruit
WestRock
EXHIBIT B
Proposed Industrial Rate Structure
The proposed industrial wastewater rates are comprised of four components as shown in the table and detailed below:
A fixed monthly service charge (flat fee).
A monthly allocation reservation charge (flat fee) based on monthly allocation.
A variable flow charge for the amount of wastewater contributed to the industrial waste system.
A variable BOD charge for the pounds of BOD in wastewater contributed.
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