13.06.020 Declaration of intent in establishing water rates.

(A) It shall be city policy to collect water rates and charges that meet but do not exceed the cost of service of the water enterprise.

(B) It shall be city policy to set water rates and charges that are fair and equitable to all customer classes and recover each customer share of the total cost of service in proportion to their use of the city system.

(C) It shall be city policy to have a water rate study performed, by a qualified independent rate consultant, at least once every five years, to ensure that water rates and charges are set to an appropriate level. Rate studies will be based on American Water Works Association (AWWA) rate setting principles and shall recommend rates which meet the cost of service of the city water enterprise.

(D) The city may exercise its discretion consistent with Hansen v. City of San Buenaventura, 42 Cal.3d 1172 (1986) to enact a rate for property owners outside the city which is forty percent greater than the rate for water customers within the city.