RESOLUTION NO. 2024_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TORRANCE ADOPTING A REVISED SCHEDULE OF RATES AND
CHARGES FOR WATER SERVICE IN THE TORRANCE
MUNICIPAL WATER SERVICE AREA
WHEREAS, the City of Torrance (herein “City”) provides water service to approximately 80% of the City under the aegis of Torrance Municipal Water; and WHEREAS, pursuant to Torrance City Charter Section 400 and Torrance Municipal Code Section 76.2.7, the City Council of the City of Torrance has the authority to set and collect rates and charges for water services for the area served by Torrance Municipal Water; and WHEREAS, the City Counc il on September 24, 2024, set November 19, 2024, as the date for a Public Hearing for considerat ion of revised schedule of water rates and charges , including automatic rate adjustments , to become effective January 1st of each year through 2029; and
WHEREAS, the water rates and charges apply to all customer accounts within the area served by Torrance Municipal Water; and
WHEREAS, the notice of the November 19, 2024, public hearing (the “Hearing”) and the proposed schedule of rate s and charges was mailed to each City of Torrance customer as required by the California Constitution; and
WHEREAS, a customer mailing notice was mailed on October 2, 2024; and WHEREAS, a protest form was attached to the customer mailing notice; and WHEREAS, at the Hearing , the City Council heard and considered all oral and written testimony and protests; and
WHEREAS, the City Council desires to approve the proposed schedule of water rates and charges.
THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. EFFECTIVE DATE
The rates and fees set forth in this Resolution shall take effect on January 1, 2025.
SECTION 2. SCHEDULE OF RATES AND CHARGES
A. Rate Structure
Customer rate classes are divided into three categories of service defined as: Single Family Residential (one meter per single residential unit); Low Income Senior or Low ATTACHMENT 1
Income Disabled Single Family Residential and Other Standard (non -contractual rate) Customer Accounts, which include all commercial, industrial, institutional, multi- family residential customers and all other customers.
All customers of Torrance Municipal Water are charged both a monthly fixed charge, known as a Monthly Meter Charge or Readiness -to-Serve Charge, and commodity rate based on the amount of water consumed during the billing service period, known as a “Commodity Charge” or Quantity Usage Charge”.
B. Water Rate Schedule Effective January 1, 2025
Table 1: Commodity (Quantity Usage Charge)
Commodity
Charge
Monthly Tiers
(ccf)
CY
2024
CY
2025
CY
2026
CY
2027
CY
2028
CY
2029
Single Family Customers
Tier 1 7 $3.42 $3.55 $3.79 $4.02 $4.27 $4.53
Tier 2 12 $5.77 $5.47 $5.83 $6.18 $6.56 $6.96
Tier 3 13+ $6.98 $7.46 $7.95 $8.43 $8.94 $9.48
All Other Standard Customers
Tier 1 10 $3.89 $4.09 $4.36 $4.63 $4.91 $5.21
Tier 2 11+ $5.55 $6.04 $6.44 $6.83 $7.24 $7.68
Low Income Senior or Disabled Customers
Tier 1 7 $2.93 $2.78 $2.97 $3.15 $3.34 $3.55
Tier 2 12 $5.29 $5.06 $5.39 $5.72 $6.07 $6.44
Tier 3 13+ $6.50 $5.82 $6.20 $6.58 $6.98 $7.40
Usage measured in hundreds of cubic feet (CCF’s or billing units) which equals approximately 748 gallons Table 2: Monthly Meter Charge
SECTION 3. OTHER SERVICE CHARGES AND FEES
A. Fire Protection Charges (Fireline) charge
Customers that require fire protection service are charged a Monthly Private CY
2024
CY
2025
CY
2026
CY
2027
CY
2028
CY
2029
3/4" $7.48 $7.48 $7.97 $8.45 $8.96 $9.50
1" $10.74 $10.57 $11.26 $11.94 $12.66 $13.42
1 1/2" $18.89 $18.29 $19.48 $20.65 $21.89 $23.21
2" $28.68 $27.55 $29.35 $31.12 $32.99 $34.97
3" $59.64 $56.88 $60.58 $64.22 $68.08 $72.17
4" $105.30 $100.09 $106.60 $113.00 $119.78 $126.97
6" $214.49 $203.51 $216.74 $229.75 $243.54 $258.16
8" $393.83 $373.30 $397.57 $421.43 $446.72 $473.53
10" $622.03 $589.39 $627.71 $665.38 $705.31 $747.63
Fire Protection Charge based on the size of the fire protection meter size.
Table 3: Monthly Private Fire Protection Service Charge B. Pumping Service Charge
When water is furnished to a property at an elevation higher than can be supplied by gravity flow form the water source or reservoir that supplies water to said property, a Pumping Service Charge, as shown on the chart below shall be added to the customer’s water bill to offset energy and other related costs.
Table 4: Monthly Pumping Service Charge (Applies to customers in high pressure zone) C. Fire Flow Service Charge
A $331 charge per service shall apply to parties requesting the performance of a fire flow test. This fee is payable in advance of performance of the fire flow test.
D. A late payment charge shall be levied on all outstanding account balances, which are 30 days or more in arrears from the mailing date of the utility bill. The charge shall be equal to 3% of the unpaid balance 30 or more days in arrears.
Fire Service
Charge
CY
2024
CY
2025
CY
2026
CY
2027
CY
2028
CY
2029
2" $6.43 $7.77 $8.28 $8.78 $9.31 $9.87
3" $13.71 $17.15 $18.27 $19.37 $20.54 $21.78
4" $26.29 $33.32 $35.49 $37.62 $39.88 $42.28
6" $71.40 $91.36 $97.30 $103.14 $109.33 $115.89
8" $149.24 $191.46 $203.91 $216.15 $229.12 $242.87
10" $266.32 $342.03 $364.27 $386.13 $409.30 $433.86
12" $428.60 $550.72 $586.52 $621.72 $659.03 $698.58
Pumping Service
Charge
CY
2024
CY
2025
CY
2026
CY
2027
CY
2028
CY
2029
3/4" $6.40 $8.35 $8.90 $9.44 $10.01 $10.62
1" $10.66 $13.91 $14.82 $15.71 $16.66 $17.66
1 1/2" $21.29 $27.82 $29.63 $31.41 $33.30 $35.30
2" $34.08 $44.51 $47.41 $50.26 $53.28 $56.48
3" $75.54 $97.37 $103.70 $109.93 $116.53 $123.53
4" $134.17 $175.26 $186.66 $197.86 $209.74 $222.33
6" $276.84 $361.64 $385.15 $408.26 $432.76 $458.73
8" $511.10 $667.64 $711.04 $753.71 $798.94 $846.88
10" $809.22 $1,057.10 $1,125.82 $1,193.37 $1,264.98 $1,340.88
E. Engineering, Inspection and Overhead Service Charge (EIO)
A service charge shall be levied to recover engineering, inspection and overhead costs for all water system facilities constructed at developer expense.
The fee shall be equal to 30.7% of the actual construction cost of said facilities.
The developer, or his designee, shall furnish a letter documenting the actual construction cost of said water facilities, and the City shall have the right to verify these costs. The fee is payable promptly after receipt of a billing rendered by the City.
F. Installation Charge for a New service Connection Larger than 2”
Upon application for a new service connection larger than 2”, the applicant shall be required to make a deposit to the City for the total estimated cost of said installation including the engineering, inspection and overhead charge.
1) The total cost of the new service connection shall consist of all actual material\ and installation/construction cost plus a charge of 30.7% of said installation cost for engineering, inspection and overhead.
2) When said installation is complete the total cost shall be determined. If said cost is less than the amount of the deposit, the excess shall promptly be refunded. If said cost is greater than the amount of deposited, the applicant shall be required to pay the difference promptly.
SECTION 4. CONTRACTUAL RATES
Water rates for customers with contractual rates that are currently in effect are excluded form provisions of this Resolution.
SECTION 5. RATE ADJUSTMENTS
Each rate set forth in Section 2 and Section 3 of this Resolution shall automatically adjust effective January 1st of each year from 2025 through 2029. Notice of these adjustments shall be given to customers pursuant to Section 53756(d) of the California Government Code. The rates effective through January 1, 2029, shall continue in effect until amended or repealed by action of the City Council.
SECTION 6. PRIOR ACTIONS SUPERSEDED
This Resolution supersedes prior resolutions of the City Council to the ex tent they set rates inconsistent with those set forth herein.
SECTION 7. ADMINISTRATION
It shall be the duty and function of the Finance Director to administer this Resolution.
SECTION 8. TEMPORARY WATER SERVICE
A. Minimum Charge
A minimum charge equal to the Monthly Meter Service Charge (Readiness to Serve) for a 3” meter shall apply to all applicants for temporary water service regardless whether a meter is actually set or a temporary permit is issued. This charge will not be prorated, except in the case where continuous usage exceeds one month.
B. Quantity Rates (Commodity)
In addition to the minimum charge, all applicants will be billed for the quantity of water used at the prevailing Quantity (Commodity) rate schedule.
C. Deposit for Temporary Meter
For temporary water service requiring the setting of temporary meter, the applicant shall make a deposit of $1,500 for said meter, which shall be refunded to the applicant once the meter is returned to the City. Upon completion if the temporary use period, the meter shall be returned to the city in good condition. In the event the meter is not returned, the deposit will be forfeited. Any damage to the meter will be paid by the applicant and deducted from the deposit.
D. Non-Metered Temporary Service
The policy of the City is to meter all temporary water service usage, If possible. In the event such metering proves impracticable, a method shall be employed by the City to estimate the water usage in the cubic footage of the ditch or area flooded, the area of the ground sprinkled, the size and number of loads taken by tank trucks, or other reasonable method for calculating the amount of water used.
SECTION 9. RECYCLED WATER
Recycled water rated for non-contract customers are established by City Resolution 99-103 and are not subject to this Resolution.
SECTION 10. FINDINGS
The City Council hereby finds:
A. The written protests against the rates established in Sections 2 and 3 of this Resolution have not been received with respect to a majority of affected customers.
B. The revenues derived from those rates shall not exceed the funds required to provide water service.
C. The revenues derived from those rates will not be used any other purpose other than providing water service.
D. That the amounts of those rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel.
E. That those rates will not be imposed unless water service is actually used by, or immediately available to the customer.
F. That those rates are imposed for the water service and not for a general government service such as police, fire, ambulance, or library services.
INTRODUCED, APPROVED, and ADOPTED this 19th day of November 2024.
_________________________
Mayor George K. Chen
ATTEST:
_____________________
Rebecca Poirier, City Clerk
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN
City Attorney
By: __________________________________
Patrick Q. Sullivan, City Attorney