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ATTACHMENT 1 <br />ATTY/ORD.428/CITY WATER RATE ORDINANCE 2016 <br />REV: 06-02-16 FF <br />Page 5 of 5 <br />(i) Separate Landscape Water Meters. For all new landscapes and <br />existing landscapes of one acre or more the installation of <br />separate water meter is required except for single-family homes. <br />(j) Submeters. For all newly constructed residential buildings where <br />one meter is furnished by the City for more than one residential <br />dwelling unit shall be required to install a separate meter for each <br />distinct dwelling unit downstream of the City water meter. <br />Maintenance and billing for water use of submeters shall be the <br />responsibility of the property owner. <br />(k) Pass Through Provision for Wholesale Water Rates. All <br />potable water distributed by the City through its water system is <br />purchased by the City at wholesale from the San Francisco Public <br />Utilities Commission. The potable water service charges set forth <br />in subdivision (f) of this Section were calculated based on the <br />assumption that SFPUC would set its rates to $4.10 per unit on <br />July 1, 2016; to $4.28 per unit on July 1, 2017; and to $4.68 per <br />unit on July 1, 2018. If there are additional wholesale rate <br />increases adopted by the SFPUC, each potable water charge, as <br />set forth in subdivision (f) of this Section, will automatically adjust <br />by the exact number of cents per water unit that the SFPUC <br />increases its wholesale rate above the assumed wholesale rates <br />set forth in this subdivision (k). The City will mail notification of <br />any such adjustment to customers at least 30 days prior to the <br />effective date of such automatic adjustment. <br />SECTION 2. This ordinance is statutorily exempt from CEQA review <br />pursuant to Public Resources Code Section 21080(b) (8). The City Council <br />finds that the water service charges and fees are for the purpose of meeting <br />operating expenses, including employee wage rates and fringe benefits, <br />purchasing or leasing supplies, equipment, or materials, meeting financial <br />reserve needs and requirements, and obtaining funds for capital projects <br />necessary to maintain service within existing service areas. The Staff Report <br />dated June 13, 2016, expressly states in the “Background” section that <br />increases in wholesale water rates necessitate a rate increase and that <br />revenues are used for the operation and maintenance of the water system, <br />for an emergency reserve, and for replacement of the system. <br /> <br /> SECTION 3. This ordinance shall be effective on August 1, 2016. <br /> <br /> <br />* * * <br />6.4.A. - Page 10