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RES-2012-045 RESOLUTION NO. 2012- 045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING THE WATER RATES, RULES AND REGULATIONS BY ADOPTING RULE NO. 26 REGARDING SMART METEROPT OUT PROCEDURES FOR RESIDENTIAL CUSTOMERS AS ADOPTED BY RESOLUTION NO. 72R -600 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2010 -200. WHEREAS, the City of Anaheim ( "Anaheim ") maintains a water transmission and distribution system for the distribution of water to residents and businesses of Anaheim and has adopted Water Rates, Rules and Regulations for the sale and distribution of water; and WHEREAS, the Anaheim Municipal Code authorizes the City Council to approve reasonable Rates, Rules and Regulations governing water services and fees for providing water services; and WHEREAS, Anaheim established various rules of the Rates, Rules and Regulations for these purposes; and - WHEREAS, Anaheim deployed its first advanced meters ( "Smart Meters ") in 2001 for large commercial and industrial customers, and, in 2008, it began its deployment to residential customers; and WHEREAS, Smart Meters collect and wirelessly transmit electric and water consumption information to Anaheim's billing systems, which reduces costs and increases system flexibility by, among other things, (i) enabling Anaheim to remote meter read, and (ii) enabling customers to privately review their own detailed consumption information on their electric and water usage; and WHEREAS, in spite of the widespread acceptance of Smart Meters, some customers have expressed an interest in not participating in Anaheim's Smart Meter Program; and WHEREAS, revisions to the Water Rates, Rules and Regulations are required in order to further articulate Smart Meter opt out procedures for residential customers who do not wish to participate in Anaheim's Smart Meter Program; and WHEREAS, Rule No. 26 of the Water Rates, Rules and Regulations (Rule 26) is intended to accomplish the foregoing; and WHEREAS, the Public Utilities Board of the City of Anaheim ( "Public Utilities Board ") considered the proposal of the Anaheim's Public Utilities Department and made the following findings with respect to the need for the proposed modifications to the Water Rates, Rules and Regulations: it is reasonable and appropriate to adopt Rule 26 as set forth in Attachment A in order to further Anaheim's Smart Meter Program; and WHEREAS, the Public Utilities Board considered the requirements of the California Environmental Quality Act (CEQA) and found that matters covered above come within Section 15061(b)(3) of Title 14 of the California Administrative Code. Thus, the proposed adoption of Rule No. 26 is exempt from the CEQA; and WHEREAS, based on the findings hereinabove made, the Public Utilities Board recommended to the City Council that the City Council adopt the findings of the Public Utilities Board with respect to the matters contained herein and adopt Rule No. 26 as shown in Attachment A; and WHEREAS, based on the findings hereinabove made, the Public Utilities Board recommended to the City Council that the City Council certify that the adoption of Rule No. 26 is exempt under the CEQA, in accordance with Title 14 of the California Administrative Code, Section 15061(b)(3), because it can be seen with certainty that there is no possibility that Rule 26 will have a significant effect on the environment; and WHEREAS, the City Council has considered the evidence and concurs with the findings of the Public Utilities Board as set forth herein above. NOW, THEREFORE, BE IT RESOLVED by the- City Council of the City of Anaheim as follows: 1. The findings set forth herein are hereby adopted by the City Council of the City of Anaheim. 2. Rule No. 26 as set forth in Attachment A shall be, and is hereby adopted by the City Council of the City of Anaheim. 3. The City Council of the City of Anaheim hereby determines and finds that, in accordance with the CEQA and the State CEQA Guidelines, the adoption of Rule No. 26 by the City Council is exempt from CEQA pursuant to Title 14 of the California Administrative Code, Section 15061(b)(3), because it can be seen with certainty that there is no possibility that Rule 26 will have a significant effect on the environment. 4. The Anaheim Public Utilities General Manager is authorized and directed to prepare, promulgate, publish, and take any and all actions necessary to implement the changes to the Water Rates, Rules and Regulations as set forth herein. 5. Rule 26 shall be effective on June 1, 2012. /// /// THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 29th day of May , 2012, by the following roll call vote: AYES: Mayor Tait, Council Members Sidhu, Galloway, Eastman and Murray NOES: None ABSENT: None ABSTAIN: None CITY OF ANAHEIM MAYOR OF THE CI OF ANAHEIM ATTEST r (ilt &•� J V� CITY CLERK OF THE CITY OF NAHEIM 89353 Attachment A Rule No. 26 of the Water Rates, Rules and Regulations CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.26.1 Anaheim, CA 92805 RULE NO. 26 SMART METER PROGRAM RESIDENTIAL CUSTOMER OPT OUT OPTION A. GENERAL The Utility is deploying smart water meters (Smart Water Meters) within its Service Area in furtherance of its Smart Meter Program. This Rule sets forth the terms and conditions for residential Customer Smart Water Meter opt out procedures. B. TERMS OF SMART METER PROGRAM 1. Definition. Smart Water Meters are Meters that transmit Customer water consumption data to the Utility at various time intervals through radio frequency transmission, and these Meters also allow the Utility to detect leaks. A Meter is not a Smart Water Meter if the Meter cannot electronically transmit data to the Utility because either (i) the Meter does not have that capability, or (ii) the Utility has disabled or turned off the radio frequency transmission of the Meter. 2. Opt Out Procedures. In addition to this Rule No. 26, Smart Water Meters shall be governed by the Meter provisions within these Water Rates, Rules and Regulations, including, but not limited to, Rule No. 16 and Rule No. 17. Consistent with Rule No. 16, Customers are required to install a Smart Water Meter when the Utility requires such installation. Notwithstanding the foregoing, a Customer may refuse the installation of a Smart Water Meter if the Customer (i) is a residential Customer and (ii) has refused such installation in accordance with the procedures set forth in Section B.2.a. below. A residential Customer may not refuse Smart Water Meter installation if (i) the Meter of that residential Customer has experienced tampering or manipulation; or (ii) the Utility has experienced difficulty in disconnecting Service or reading the Meter due to any cause or reason of inaccessibility of the Meter of that residential Customer. a. Prior to the installation of a Smart Water Meter for any account of a residential Customer, the Utility shall provide the residential Customer with written notice (Utility Notice) of (i) the Utility's intent to install a Smart Water Meter and the approximate date of installation; (ii) the location of the installation; and (iii) the residential Customer's option to refuse the installation of a Smart Water Meter. If a residential Customer desires to exercise his/her option to refuse the installation of a Smart Water Meter, he /she shall notify the Utility and, upon receipt of that notification, the Utility will not install a Smart Water Meter at the location described in the applicable Utility Notice. A residential Customer who refuses the installation of a Smart Water Meter in compliance with this Section B.2.a. shall be referred to hereinafter as a Non - Participating Customer. Notwithstanding the foregoing, a Non - Participating Customer may lose this Customer's status as a Non - Participating Customer and the Utility may require this Customer to install a Smart Water Meter upon the occurrence of any of the following: (i) the Meter of that Non - Participating Customer has experienced tampering or manipulation; (ii) the Utility has experienced difficulty in disconnecting Service or reading the Meter due to any cause or reason of inaccessibility of the Meter of that Non - Participating Customer; or (iii) the previously installed Meter technology is no longer adequately supportable in the Utility's sole discretion. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Marcie L. Edwards Superseding Resolution No.: N/A Dated: N/A General Manager CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.26.2 Anaheim, CA 92805 RULE NO. 26 SMART METER PROGRAM INSTALLATION AND OPT OUT OPTION b. Notwithstanding anything to the contrary within this Rule No. 26, the Utility reserves the right to require every residential Customer, including Non - Participating Customers, to install Smart Water Meters when the Utility determines that the number of Non - Participating Customers has reached a point where their non - participation is no longer cost neutral to the Utility. The Utility may require the foregoing in lieu of proposing the fee set forth in Section C of this Rule. C. FEES Except for those fees and charges for Meters set forth elsewhere within these Water Rates, Rules and Regulations, the Utility will not assess an opt out fee or charge on Non - Participating Customers until the Utility determines that the number of Non - Participating Customers has reached a point where their non - participation is no longer cost neutral to the Utility. At such time when the Utility determines participation levels are no longer cost neutral, the Utility will propose to the City Council such fees to recover the Utility's costs of service. ISSUED BY: Effective: by Resolution No.: Dated: - Marcie L. Edwards Superseding Resolution No.: N/A Dated: N/A General Manager