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Ordinance No. 540-12 ORDINANCE NO. 540-12 AN AMENDMENT TO THE SOUTH TAHOE PUBLIC UTILITY DISTRICT'S ORDINANCE NO. 464—ADMINISTRATIVE CODE SECTIONS 3.1.50 AND 3.1.51 WATER RATE SCHEDULES, AND SECTION 4.5.12 SEWER RATE SCHEDULE, AND SUPERSEDING WATER AND SEWER RATE ORDINANCE NUMBERS 530-11 AND 531-11 IN THEIR ENTIRETY The Board of Directors of the South Tahoe Public Utility District, El Dorado County, State of California, makes the following findings: 1. Public Notice of this Ordinance was duly given, authorized, posted and published, as required by law and specifically, that said Notice fixing the time and place of the hearing on said Ordinance was duly given, posted, and published, as required by Government Code of California. 2. Pursuant to said Public Notice, a public meeting by the Board of Directors of the South Tahoe Public Utility District (District) on this Ordinance took place on May 10, 2012, at 6:00 p.m. at the place specified in said Notice of Public Meeting. 3. The Notice of time and place of said meeting, including a general explanation of the matters to be considered at said meeting was published in the Tahoe Daily Tribune on April 18, 2012 and May 2, 2012. Time and place of said meeting was also published in the Proposition 218 notice mailed to all District account holders on March 26, 2012. 4. At least ten (10) days prior to said public meeting, the data indicating the amount of the cost or estimated cost required to provide water and sewer services for which service charges are proposed for adoption pursuant to this Ordinance, and the revenue source(s) anticipated to provide such service was available to the public. 5. On March 26, 2012, Proposition 218 notices were mailed to all District account holders, indicating proposed rate increases and protest instructions. 6. Protests were accepted by the District through 2:00 pm on May 17, 2012. Total protests received were 1674 of which 1544 were valid protests. 7. District rate payers were notified of the proposed rate increase through the Proposition 218 notice, two newspaper publications, radio advertisements and the District website. Ordinance No.540-12 Water and Sewer Rate Schedules Page 1 WATER RATES 8. The water service charges in Schedules No. 2 and 3 will be effective July 1, 2012 and are for the following purposes: a. Obtaining funds for capital projects necessary to maintain service for existing customers; b. Meeting debt service requirements; c. Meeting operating expenses; d. Purchasing or leasing equipment, supplies or materials; e. Meeting financial reserve needs and requirements. 9. The existing water service charges are necessary to meet the costs and expenses enumerated in paragraph 8 herein above, and are included in the water budget adopted on May 17, 2012. NOW, THEREFORE, BE IT ENACTED BY THE SOUTH TAHOE PUBLIC UTILITY DISTRICT BOARD OF DIRECTORS THAT ORDINANCE NO. 531-11 IS SUPERSEDED AND THAT WATER RATE SCHEDULES NUMBER 2 AND 3 PROVIDED BY ORDINANCE NO. 464—ADMINISTRATIVE CODE, SECTION 3.1.50 AND 3.1.51 ARE HEREBY AMENDED AND REPLACED BY THE FOLLOWING SCHEDULES 2 AND 3: WATER RATE SCHEDULES SCHEDULE 2—ANNUAL FLAT SERVICE a. Single dwelling unit $489.20 b. Duplex $869.68 c. Triplex $1,181.56 d. Fourplex $1,528.48 e. Each additional unit $256.48 f. Business establishment when serviced from: 3/4 inch connection $744.32 One inch connection $1,123.24 Ordinance No.540-12 Water and Sewer Rate Schedules Page 2 SCHEDULE 3 —METERED SERVICE Annual Minimum Base Rate 3/4 inch water connection $360.00 1 inch water connection $601.20 1 %2 inch water connection $1,198.80 2 inch water connection $1,918.80 3 inch water connection $3,600.00 4 inch water connection $6,001.20 6 inch water connection $11,998.80 8 inch water connection $19,198.80 10 inch water connection $27,601.20 All consumption will be charged at the following rate by customer class: Single Family Tier 1 $1.25 per 100 cubic feet (1 —45 CCF). Single Family Tier 2 $1.88 per 100 cubic feet (above 45 CCF) Multi Family $1.45 per 100 cubic feet Commercial $1.37 per 100 cubic feet 10. The Water Capital Improvement Charges in the amount of$1,448,000 are included in Rate Schedules 2 and 3 herein above and will be effective July 1, 2012. The Capital Improvement Charges are restricted in use to the following purposes: a. Construction or purchase of capital improvements as designated in the District's financial statements as "Capital Assets"; b. Debt service related to items referred to in 10a; c. Reserves accumulated for future construction or purchase of Capital Improvements as designated in the District's financial statements as "Capital Assets." SEWER RATES 11. The sewer service charges in Schedule No. 6 will be effective July 1, 2012 and are for the following purposes: a. Obtaining funds for capital projects necessary to maintain service for existing customers; b. Meeting debt service requirements; c. Meeting operating expenses; d. Purchasing or leasing equipment, supplies or materials; e. Meeting financial reserve needs and requirements. 12. The increase in sewer service charges are necessary to meet the costs and expenses enumerated in Paragraph 11 herein above, and are included in the sewer budget adopted May 17, 2012. Ordinance No.540-12 Water and Sewer Rate Schedules Page 3 NOW, THEREFORE, BE IT ENACTED BY THE SOUTH TAHOE PUBLIC UTILITY DISTRICT BOARD OF DIRECTORS THAT ORDINANCE NO. 530-11 IS SUPERSEDED AND THAT SEWER RATE SCHEDULE NUMBER 6 PROVIDED BY ORDINANCE NO. 464-ADMINISTRATIVE CODE, SECTION 4.5.12 IS HEREBY AMENDED AND REPLACED BY THE FOLLOWING SCHEDULE 6: SEWER RATE SCHEDULE 6 Annual service charges per sewer unit shall be as follows: Type of Connection Annual Service Quarterly Service Minimum Charge Charge per Unit Charge per Unit Per Unit Single Family Dwellings $125.80 $31.45 $10.48 Multi-Family Residences $123.20 $30.80 $10.27 Motels/Hotels/Timeshares $121.68 $30.42 $10.14 Restaurants $130.72 $32.68 $10.89 Service Stations $130.72 $32.68 $10.89 Trailer/Mobile Home Parks $115.76 $28.94 $9.65 & Campgrounds Laundromats $130.72 $32.68 $10.89 Automobile Service Garages $130.72 $32.68 $10.89 Taverns without Food $130.72 $32.68 $10.89 Facilities All Other Commercial $130.72 $32.68 $10.89 Establishments 13. Delinquent charges, when recorded as provided in California Government Code Section 54354.5, and the District's Administrative Code, shall constitute a lien upon the real property served. 14. This Ordinance hereby supersedes Ordinance Numbers 530.11 and 531.11 in their entirety, and amends Ordinance No. 464-Administrative Code, Sections 3.1.50, 3.1.51 and 4.5.12. Ordinance No.540-12 Water and Sewer Rate Schedules Page 4 PASSED AND ENACTED by the Board of Directors of the South Tahoe Public Utility District at its Regular Board Meeting on the 17th day of May, 2012, by the following vote: For the Proposed Restructured Metered Rates: AYES: Cefalu, Jones, Vogelgesang, Sheehan, Schafer NOES: None ABSENT: None For the Proposed 5% Sewer and 2% Water Rate Increase: AYES: Jones, Sheehan, Schafer NOES: Cefalu, Vogelgesang ABSENT: None Eric Schafer, tt/Aresi t of the Board South Tahoe Public Utility District Kathy Sham, lerk of the Ward Ordinance No.540-12 Water and Sewer Rate Schedules Page 5