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HomeMy WebLinkAboutItem 10b - Setting City Water and Sewer Rates for Calendar Year 2020Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 1 of 10 DATE: December 3, 2019 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Jacquelyn Mercado, Senior Management Analyst SUBJECT: SETTING CITY WATER AND SEWER RATES FOR CALENDAR YEAR 2020 RESOLUTION NO. 7286 SETTING CITY WATER RATES AND FINDING THE RATES WILL NOT EXCEED THE ESTIMATED AMOUNT NECESSARY TO FUND THE OPERATION OF THE CITY WATER SYSTEM FOR CALENDAR YEAR 2020 Recommendation: Adopt RESOLUTION NO. 7287 SETTING CITY SEWER RATES AND FINDING THE RATES WILL NOT EXCEED THE ESTIMATED AMOUNT NECESSARY TO FUND THE OPERATION OF THE CITY SEWER SYSTEM FOR CALENDAR YEAR 2020 Recommendation: Adopt SUMMARY On January 19, 2016, the City Council adopted a tiered water rate structure and approved a five-year water and sewer rate adjustment schedule for calendar years 2016 through 2020. The Public Works Services Department (“PWSD”) has reviewed water and sewer operating budgets, revenues, expenditures, and reserve fund balances, and determined that it is necessary to adjust water and sewer rates for calendar year 2020 to recover increasing water and sewer system operations and maintenance costs, and to continue to replace aging infrastructure. The PWSD has determined that a 3% sewer rate adjustment, instead of the approved maximum of 6%, will be appropriate for calendar year 2020. The water rate increase will be the 7% increase contemplated in the adopted rate schedule. The water and sewer rate adjustments will ensure revenue stability and encourage water use efficiency. The City of Arcadia’s water and sewer rates are among the lowest in the area and will remain so, even with the proposed rate adjustments. Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 2 of 10 It is recommended that the City Council adopt Resolution Nos. 7286 and 7287 authorizing the proposed rate adjustments for calendar year 2020. BACKGROUND The City provides and maintains water and sewer services to more than 55,000 residents. Utility rates fund the operations, maintenance, and capital improvements of the water and sanitary sewer systems to provide quality services to Arcadia residents and businesses. In February 2014, the City Council awarded a Professional Services Agreement to an independent rate consultant for the preparation of a Water and Sewer Rates Cost of Service Study (“Cost Study”) that determined how best to recover projected cost increases over a five-year period. The PWSD and the City’s consultant gathered and analyzed data on the City’s water and sanitary sewer operations, and established an appropriate rate structure that would meet the City’s primary objectives of providing revenue stability, and encouraging water use efficiency. At the September 15, 2015, Study Session, the City Council directed the PWSD to proceed with the implementation of a tiered water rate structure and sewer rate adjustments based on the completed 2015 Cost Study. The seasonal tiered water rate structure for single-family customers includes variable consumption allotments based on the customers’ water meter size and time of year. This helps to account for the usage requirements of a large property with more irrigable land area versus a smaller property with less irrigable land area as well as changing demands in drier months. On October 20, 2015, the City Council directed the PWSD to follow Proposition 218 balloting procedures to establish water and sewer rates. On January 19, 2016, the City Council conducted a public hearing and, finding no majority protest, adopted the seasonal tiered water rate structure, and approved a five-year water and sewer rate adjustment schedule for calendar years 2016 through 2020. DISCUSSION Water Rates Water rates are determined by analyzing expenditures and revenues, and forecasting the water sales for calendar year 2020. The following goals were identified in the 2015 Cost Study: o Generate sufficient revenue to fund continued operations and maintenance of the City’s water supply and distribution system (“Water System”). o Provide for equipment replacement and improvements to the Water System infrastructure through capital improvements. o Enhance conservation measures and meet state mandates. o Maintain a $12 million dollar reserve fund to make necessary repairs in the event of a catastrophic event. Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 3 of 10 Operations and maintenance expenditures comprise the majority of the expenses within the Water budget with the single largest line item being water supply costs. The 2015 Cost Study Financial Model was used to forecast water sales and expenditures that include looking at the cost of current and future water supplies, including the rising cost of replacement water, and system operation costs. Based on discussions and previous direction from the City Council, the annual rate adjustments have been designed to use reserve funds to lessen the amount of annual water rate adjustments. Accordingly, the City Council agreed to lower the water reserve fund balance from $20 million to $12 million over the five-year period. As a result, the 2015 Cost Study recommended that the City increase revenues by 15% in calendar years 2016 and 2017, and 7% for the following three calendar years in order to fund expected operations, maintenance, and Capital Improvement Program expenditures. Following an analysis of forecasted water use, expenditures, and capital improvement projects it was determined that the City must increase revenues by 7%, as recommended by the Cost Study, and that the maximum rate adjustment for water rates be applied for calendar year 2020. The reason for applying the maximum rate adjustment is primarily due to the increased cost for Replacement Water and a new Resource Development Assessment (“RDA”) fee to purchase additional water from the State Water Project. Although the Governor declared the state drought to be over, local regions continue to suffer from long-term drought impacts particularly in the Main San Gabriel Basin (“Main Basin”), where the City pumps most of its water. Even with substantial rainfall in early 2019, basin levels have not recovered to optimal operating levels. In response, the Watermaster established a plan to restore and maintain the health of the Main Basin by purchasing and importing water from the State Water Project. The cost for this large water purchase is being passed on to local water purveyors, including the City of Arcadia, through an RDA fee. The RDA fee is assessed based on how much water the City pumps from the Main Basin in a year (the City’s average annual water pumped from the Main Basin is 12,000-acre feet). In addition to regular replacement water costs, the RDA fee has increased annually since 2016 from $40 per acre-foot to $140 per acre-foot for Fiscal Year 2019-20. Below is the actual RDA cost for the previous three fiscal years and the projected cost for the next two years through Fiscal Year 2020-21: Fiscal Year Watermaster RDA ($/AF) Water Demand (AF) Total 2016-17 $40 10,228.70 $ 409,148.00 2017-18 $70 12,099.84 $ 846,988.80 2018-19 $105 10,773.86 $ 1,131,255.30 2019-20 $140 12,000 $ 1,680,000.00 2020-21 $175 12,000 $ 2,100,000.00 Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 4 of 10 The RDA fee was not included in the 2015 Cost Study and, therefore, the water rate adjustments have not accounted for this cost. It is anticipated that the City will spend over $6 million dollars in RDA fees through Fiscal Year 2020-21. In addition, the RDA fee will continue for the foreseeable future and is estimated to cost the City approximately $2.1 million annually. Water Rate Structure The City has implemented a four-tier rate structure for single-family residential customers with seasonal adjustments in allotments based on meter size. The four-tier inclining block structure varies seasonally to reflect outdoor water use during winter (November - April) and summer months (May - October). Additionally, the single-family tiered rate structure assists in managing customer demand for water by pricing discretionary water uses, such as landscape irrigation, at a higher rate than water used for drinking and sanitation purposes. This is to provide a price signal to customers to use water efficiently, and offers an incentive to reduce excess water use. As water usage increases, so does the cost per unit of additional water; this methodology has proven effective in curtailing wasteful water practices. The proposed water rates for calendar year 2020 are as shown in the tables below, and will not exceed the estimated amount necessary to fund the operation of the City Water System for calendar year 2020: (a) Fixed bimonthly meter charge for all customer classes. Meter Charge ($/Meter Size) Meter Size (in inches) Current Rate 2020 Proposed Rate 5/8” $ 28.46 $ 30.33 3/4” $ 30.41 $ 32.40 1” $ 34.30 $ 36.55 1 1/2” $ 44.04 $ 46.93 2” $ 55.73 $ 59.39 3” $ 83.00 $ 88.45 4” $ 121.97 $ 129.97 6” $ 238.85 $ 254.53 8” $ 375.21 $ 399.85 10” $ 570.02 $ 607.45 Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 5 of 10 (b) Commodity charges [$/Hundred Cubic Feet (“HCF”)] for single-family residential customers based on the approved four-tier inclining block rate structure, and variable consumption allotments based on the customers’ water meter size. These tier breakdowns and allotments are not proposed to change at this time; only the per unit fees associated with each tier will be adjusted. Bimonthly Tier Break Points (in HCF) for Winter Water Usage (November through April) Meter Size 5/8” 3/4” 1” 1 1/2” 2” Tier 1 0 - 22 0 - 22 0 - 22 0 - 22 0 - 22 Tier 2 23 - 28 23 - 36 23 - 42 23 - 46 23 - 60 Tier 3 29 - 34 37 - 46 43 - 58 47 - 62 61 - 86 Tier 4 35+ 47+ 59+ 63+ 87+ Bimonthly Tier Break Points (in HCF) for Summer Water Usage (May through October) Meter Size 5/8” 3/4” 1” 1 1/2” 2” Tier 1 0 - 22 0 - 22 0 - 22 0 - 22 0 - 22 Tier 2 23 - 34 23 - 48 23 - 62 23 - 66 23 - 94 Tier 3 35 - 44 49 - 66 63 - 92 67 - 96 95 - 140 Tier 4 45+ 67+ 93+ 97+ 141+ Proposed Single-Family Bimonthly Rates for Commodity Charges ($/HCF) Current Rate (All Usage) 2020 Proposed Rate Tier 1 $1.71 $1.82 Tier 2 $2.09 $2.23 Tier 3 $2.38 $2.53 Tier 4 $2.55 $2.72 (c) Commodity charges ($/HCF) for multi-family residential customers based on the approved two-tier rate structure with water allocations based on the number of dwelling units in each multi-family complex. Bimonthly Tier Allotments (Per Dwelling Unit) Tier (HCF) x Per Dwelling Unit Tier 1 12 Tier 2 13 + Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 6 of 10 Proposed Multi-Family Bimonthly Rates for Commodity Charges ($/HCF) Current Rate (All Usage) 2020 Proposed Rate Tier 1 $1.57 $1.69 Tier 2 $1.83 $1.97 (d) Specific uniform rates for Commercial, Government, and Institutional classes. Proposed Rates for Commodity Charges ($/HCF) Current Rate (All Usage) 2020 Proposed Rate Commercial $1.68 $1.81 Government & Institutional $1.98 $2.13 The net change to a customer’s water bill will be affected by the customer’s ability to use water efficiently. The percent increase will vary among customers based on usage. Arcadia’s water rates are among the lowest in the area and will remain so, even with the proposed increases. The table below provides a comparison of Arcadia’s rates along with other neighboring jurisdictions. $403.66 $374.47 $309.58 $255.89 $223.88 $203.74 $159.10 $149.25 Sierra Madre South Pasadena Pasadena Glendora Monrovia Azusa Arcadia Proposed (2020) Arcadia Current Single-Family Bimonthly Water Cost for Neighboring Cities Total Bimonthly Charge for 1" Meter with Summer Usage of 59 HCF Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 7 of 10 This is the fifth year of an approved five-year water rate adjustment. Currently, the maximum water rate adjustment is not resulting in sufficient revenues to meet total expenditures for operations and maintenance costs and capital improvement projects. The goal of the 2015 Cost Study was to utilize reserve funds to minimize larger rate adjustments. The graph below includes a 7% increase in revenue for the final year of the five-year approved water rate adjustment and a projected 7% increase is projected for the following four years. Even with the annual 7% increase in revenue, the reserve fund balance would be falling below the recommended reserve fund balance of $12 million. Therefore, it should be anticipated that rates in the following 5 year period will need to be increased in excess of 7% per year to maintain a healthy fund balance or significant savings in overall water purchases will be necessary (i.e., customers would need to significantly reduce their usage). On July 16, 2019, the City Council awarded a Professional Services Agreement to an independent rate consultant to update the 2015 Cost Study and determine how best to recover projected cost increases, including the RDA fee, for the next five years through Fiscal Year 2024-25. A new analysis of forecasted water use, expenditures, Capital Improvement Program projects, and revenue requirements will be completed to update the 2015 Cost Study. The Cost Study update is anticipated to be completed by early spring 2020 and the PWSD will present the findings to the City Council at an upcoming study session. A new five-year proposed water and sewer rate adjustment schedule will $- $4 $8 $12 $16 $20 $24 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24MillionsWater Fund Balance O&M Costs CIP Proposed Revenue Total Reserves Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 8 of 10 then be presented to the City Council for adoption with a recommended effective date of July 1, 2020. Sewer Rates The City’s sewer system includes 138 miles of pipe and is, on average, 75 years old. The Sewer Master Plan is a comprehensive report outlining a long-range program of capital improvements and preventative maintenance measures to upgrade and maintain the City’s sewer system. Annual sewer rate adjustments are necessary to fund the operations and maintenance activities of the sewer system to ensure that the City’s sewer system is in compliance with state regulations that mandate the elimination of sewer overflows. The proposed revenue increases would allow the City to fund ongoing operations and achieve a 75-year replacement cycle for the City’s sewer system. The results of the 2015 Cost Study determined that the current sewer rate structure equitably recovers costs from each customer class but that the City must increase sewer revenues annually in order to fund Capital Improvement Projects and meet projected expenditure increases. The PWSD has determined that only a 3% sewer rate adjustment, instead of the approved maximum of 6%, for calendar year 2020 is necessary to meet operations and maintenance expenditures and complete capital improvement projects. The proposed sewer rates for calendar year 2020 are shown in the tables below, and will not exceed the estimated amount necessary to fund the operation of the City Sewer System for calendar year 2020: (a) Single-Family Residential and Multi-Family Residential Dwellings Current Rate 2020 Proposed Bimonthly Rate $16.48 $16.97 (b) Commercial Properties Current Rate 2020 Proposed Bimonthly Rate Fixed $49.22 $50.69 Variable $.27 $.28 * Variable rate is charged per HCF billed water usage The proposed sewer rates are increased proportionally in each year to generate the necessary projected level of revenues provided in the 2015 Cost Study. Arcadia’s sewer Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 9 of 10 rates are also among the lowest in the area and will remain so through the year 2020, even with the proposed increases, as shown in the table below. Each year, as part of the budgeting process, water and sewer operating budgets will be reviewed and analyzed. Should it be determined that revenue projections do not require the full percent rate adjustment, the PWSD will recommend a lesser rate adjustment. In addition, water and sewer rate adjustments will be brought to the City Council for adoption each year. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT Water and sewer rate increases are necessary to fund ongoing operations and maintenance budgets and the Capital Improvement Program while maintaining an adequate Reserve Fund balance in case of a natural disaster or emergency. The lack of a rate adjustment would not allow the City to recover increasing water supply costs, and operations and maintenance costs for the City’s water and sewer system. The 2015 Water and Sewer Costs of Service Study determined that the City will need to increase water revenues by 7% in calendar year 2020 to fund expected operations and capital improvement expenditures. Due to the RDA fee, which was not included in the 2015 Cost Study, the proposed water rate adjustment revenues will not recover the entire cost of operations, maintenance, supplies, and capital improvement projects. A new analysis of forecasted water use, $36.42 $28.15 $27.52 $19.50 $19.08 $16.97 $16.48 Sierra Madre South Pasadena Pasadena San Gabriel Monrovia Arcadia Proposed (2020) Arcadia Current (2019) Residential Bimonthly Sewer Cost for Neighboring Cities Resolutions Adopting City Water and Sewer Rates December 3, 2019 Page 10 of 10 expenditures, Capital Improvement Program projects, and revenue requirements will be completed to update the 2015 Cost Study to determine how best to recover projected cost increases, including the RDA fee, for the next five years through Fiscal Year 2024- 25. The PWSD has determined that a 3% sewer rate adjustment, instead of the approved maximum of 6%, for calendar year 2020 is necessary to fund expected operations and maintenance costs for the City’s sewer system. RECOMMENDATION It is recommended that the City Council determines that this project is exempt under the California Environmental Quality Act (“CEQA”); and adopt the following Resolutions: a. Resolution No. 7286 setting City Water Rates and finding the rates will not exceed the estimated amount necessary to fund the operation of the City Water System for calendar year 2020; and b. Resolution No. 7287 setting City Sewer Rates and finding the rates will not exceed the estimated amount necessary to fund the operation of the City Sewer System for calendar year 2020. Attachments: Resolution No. 7286 (City Water Rates) Resolution No. 7287 (City Sewer Rates) 1 RESOLUTION NO. 7286 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, SETTING CITY WATER RATES AND FINDING THE RATES WILL NOT EXCEED THE ESTIMATED AMOUNT NECESSARY TO FUND THE OPERATION OF THE CITY WATER SYSTEM FOR CALENDAR YEAR 2020 WHEREAS, pursuant to the Arcadia Municipal Code Section 7531.1, water rates may be set and modified by resolution of the City Council; and WHEREAS, it is the desire of the City Council to maintain flexibility so as to best meet the needs of the City and water consumers; and WHEREAS, proposed water rate changes were presented to the City Council at its October 20, 2015 regularly scheduled City Council meeting; and WHEREAS, a public notice concerning said rate changes was duly mailed to residents in accordance with Proposition 218 noticing requirements in November 2015, and a duly noticed public hearing concerning said rate adjustments was conducted by the City Council on January 19, 2016 for Calendar Years 2016, 2017, 2018, 2019 and 2020. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. SERVICE FEES. The bimonthly water service fees are comprised of two components – (1) a fixed service charge (the “Meter Charge”); and, (2) a variable water commodity charge (the “Commodity Charge”). The Commodity Charge includes four customer classes - (1) Single Family Residential; (2) Multi-Family Residential; (3) Commercial; and (4) Governmental, Institutional, and Irrigation (collectively “Institutional”). The Meter Charge is a fixed charge established on the basis of the size of the water meter (in inches) serving a property and is calculated to recover a percentage 2 of the water utility’s annual fixed costs of providing water service, such as utilities, equipment, materials, billing, collections, customer service, meter reading, and meter maintenance. SECTION 2. RATES. The following new water rates are established and shall supersede rates heretofore adopted for the provision, delivery, and consumption of water for beneficial use during each bimonthly period. (a) Meter Charge ($/Meter Size) Meter Size (in inches) Bimonthly Meter Charge 5/8” $ 30.33 3/4” $ 32.40 1” $ 36.55 1 1/2” $ 46.93 2” $ 59.39 3” $ 88.45 4” $ 129.97 6” $ 254.53 8” $ 399.85 10” $ 607.45 (b) Single- Family Residential and Multi-Family Residential Single-Family Residential and Multi-Family Residential rates consist of tiers which impose higher rates per unit of water as the level of consumption increases, with one unit equal to one hundred cubic feet of water. The amount of water allotted to each tier for Single-Family Residential customers are seasonal – winter (November through April) or summer (May through October) – and based on the size of the water meter serving a property. 3 Single-Family Residential Bimonthly Tier Break Points (in HCF) for Winter Months’ Water Usage (November through April) Single-Family Residential Bimonthly Tier Break Points (in HCF) for Summer Months’ Water Usage (May through October) Meter Size (in inches) 5/8” 3/4” 1” 1 1/2” 2” Tier 1 0-22 HCF 0-22 HCF 0-22 HCF 0-22 HCF 0-22 HCF Tier 2 23-34 HCF 23-48 HCF 23-62 HCF 23-66 HCF 23-94 HCF Tier 3 35-44 HCF 49-66 HCF 63-92 HCF 67-96 HCF 95-140 HCF Tier 4 45+ HCF 67+ HCF 93+ HCF 97+ HCF 141+ HCF Single-Family Residential Bimonthly Rates for Commodity Charges ($/HCF) Tier 1 $1.82 Tier 2 $2.23 Tier 3 $2.53 Tier 4 $2.72 The amount of water allotted to each tier for Multi-Family Residential customers are based on allotments per dwelling unit. Meter Size (in inches) 5/8” 3/4” 1” 1 1/2” 2” Tier 1 0-22 HCF 0-22 HCF 0-22 HCF 0-22 HCF 0-22 HCF Tier 2 23-28 HCF 23-36 HCF 23-42 HCF 23-46 HCF 23-60 HCF Tier 3 29-34 HCF 37-46 HCF 43-58 HCF 47-62 HCF 61-86 HCF Tier 4 35+ HCF 47+ HCF 59+ HCF 63+ HCF 87+ HCF 4 Multi-Family Residential Bimonthly Tier Allotments (Per Dwelling Unit) Tier (HCF) x Per Dwelling Unit Tier 1 12 Tier 2 13 + Multi-Family Residential Bimonthly Rates for Commodity Charges ($/HCF) Tier 1 $1.69 Tier 2 $1.97 (c) Commercial and Institutional Commercial and Institutional rates for the Commodity Charge are uniform, but the amount of the charge imposed various based on the number of units of water delivered to a property (institutional rates shall include Government and Irrigation customers), with one unit equal to one hundred cubic feet of water. Commercial Bimonthly Rates for Commodity Charges ($/HCF) - $1.81 Institutional Bimonthly Rates for Commodity Charges ($/HCF) - $2.13 SECTION 3. FIRE HYDRANT SERVICE FOR CONSTRUCTION, OUTSIDE CITY, AND PRIVATE USE. Fire hydrant meters and operating valves shall be subject to the following charges: Meter Installation $50.00 Meter Relocation $25.00 Meter Rental $40.00/month Eddy Valve Rental $25.00/month Hydrant Rental $15.00/month Hydrant Permit $25.00 5 Water Usage $2.14/100 cubic feet All water consumption is to be charged at the rate of two dollars and fourteen cents ($2.14) per full one hundred (100) cubic feet registered on the consumer’s meter. Unmetered water use will be charged at a flat rate determined by the Water Section of the Public Works Services Department based upon type of use. SECTION 4. FIRE LINE SERVICE (NO CHARGE FOR WATER USE). The following rates are established for bimonthly charges for fire protection services: SIZE OF MINIMUM BIMONTHLY METER SERVICE CHARGE 2” $ 11.55 4” 23.10 6” 34.64 8” 46.18 10” 57.75 SECTION 5. All rates set forth in this Resolution shall be reflected on all water bills issued on and after January 1, 2020. SECTION 6. The City Council hereby finds that the rates specified in this Resolution will not produce an amount in excess of that necessary to fund the operation of the City of Arcadia Water System. SECTION 7. The City Council finds that this Resolution is exempt from the requirements of the California Environmental Quality Act as specified in Title 14 Section 15273 of the California Administrative Code. SECTION 8. The City Clerk shall certify to the adoption of this Resolution. 1 RESOLUTION NO. 7287 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, SETTING CITY SEWER RATES AND FINDING THE RATES WILL NOT EXCEED THE ESTIMATED AMOUNT NECESSARY TO FUND THE OPERATION OF THE CITY SEWER SYSTEM FOR CALENDAR YEAR 2020 WHEREAS, pursuant to the Arcadia Municipal Code Section 2696, sewer rates may be set and modified by resolution of the City Council; and WHEREAS, it is the desire of the City Council to set sewer rates in a reasonable amount and so as to meet the capital improvement and service needs of the City and its sewer service consumers; and WHEREAS, proposed sewer rate changes were presented to the City Council at its October 20, 2015 regularly scheduled City Council meeting; and WHEREAS, a public notice concerning said rate changes was duly mailed to residents in accordance with Proposition 218 noticing requirements in November 2015, and a duly noticed public hearing concerning said rate adjustments was conducted by the City Council on January 19, 2016 for Calendar Years 2016, 2017, 2018, 2019 and 2020. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. RATES. The following new sewer rates are established and shall supersede rates heretofore adopted for the following categories of sewer service: (a) Single-Family Residential and Multi-Family Residential Dwellings - $16.97 bimonthly charge.