RES-2013-115 RESOLUTION NO. 2013- 115
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM MODIFYING THE WATER RATES, RULES AND
REGULATIONS BY MODIFYING RULE NOS. 6 AND 7 FOR
THE SALE AND DISTRIBUTION OF WATER AS ADOPTED
BY RESOLUTION NO. 72R -600 AND MOST RECENTLY
AMENDED BY RESOLUTION NO. 2013 -003.
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, the Anaheim Public Utilities Department ( "Department ") is a
publicly owned utility, but nonetheless strives to operate like a business and continuously seeks
opportunities to minimize administrative and fiscal burdens while remaining in a position to
maintain service reliability and high industry standards; and
WHEREAS, the Anaheim Regulatory Relief Task Force was charged with
reviewing the regulatory burden on existing and prospective business in Anaheim and making
recommendations that help foster more freedom for Anaheim's businesses community
( "Anaheim's Regulatory Relief Initiative "); and
WHEREAS, in support of the Anaheim Regulatory Relief Initiative, to provide
regulatory relief to utility customers under certain specific circumstances, and to clarify and
update language, Department staff reviewed and recommends modifications to Rule Nos. 6 and 7
of the Water Rates, Rules and Regulations to (i) allow installment arrangements on service
deposits; and (ii) add clarifying language and delete obsolete language; and
WHEREAS, the Public Utilities Board of the City of Anaheim ( "Public Utilities
Board ") considered the proposal of Anaheim's Public Utilities Department and made the
following findings with respect to the need for the proposed modification to the Water Rates,
Rules and Regulations: it is reasonable and appropriate to modify Rule Nos. 6 and 7 as set forth
in Attachment A in order to further Anaheim's Regulatory Relief Initiative and clarify and
update Rule Nos. 6 and 7; 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 modification of the Water Rates, Rules and Regulations Rule Nos. 6 and 7 are exempt
from 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 modify Rule No. 6 and 7 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 modification of Rule Nos.
6 and 7 of the Water Rates, Rules and Regulations is exempt under 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 Nos. 6 and 7 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. The City Council of the City of Anaheim hereby determines, finds, and
certifies that, in accordance with CEQA and the State CEQA Guidelines, the modification of
Rule Nos. 6 and 7 of the Water Rates, Rules and Regulations 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 Nos. 6 and 7 will have a
significant effect on the environment as the changes are exclusively being made to clarify
language and to provide service deposits to the Department's customers.
3. The modifications to Rule Nos. 6 and 7of the Water Rates, Rules and
Regulations as set forth in Attachment A shall be, and are hereby adopted by the City Council of
the City of Anaheim effective August 1, 2013.
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.
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THE FOREGOING RESOLUTION is approved and adopted by the City Council
of the City of Anaheim this 23rd day of _ July , 2013, by the
following roll call vote:
AYES: Mayor Tait, Council Members Eastman, Murray, Brandman and Kring
NOES: None
ABSENT: None
ABSTAIN: None
CITY OF ANAHEIM
7
Y
M OR OF THE CITY OF ANAHEIM
ATTEST
All AI
AA • 41As 11.
CITY CLERK OF THE CITY OF ANAHEIM
96255
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Attachment A
Rule Nos. 6 and 7 of the
Water Rates, Rules and Regulations
4
CITY OF ANAHEIM WATER RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd. Page No. 3.6.1
Anaheim, CA 92805
RULE NO. 6
ESTABLISHMENT AND REESTABLISHMENT OF CREDIT
A. ESTABLISHMENT OF CREDITWORTHINESS
1. Creditworthiness and Service Deposit. Prior to receiving Service from the Utility, each Applicant for
Service must be creditworthy or furnish a deposit to secure payment. An Applicant is creditworthy if,
within the previous twelve (12) months, Applicant has maintained a record of paying utility bills
before becoming past due in the same Applicant's name for a minimum of twelve (12) consecutive
months.
In the alternative, an Applicant who has been a Customer of the Utility may establish creditworthiness
if Applicant establishes all of the following:
(a) Applicant was a Customer for a similar type of Service within the past two years;
(b) The billing amount of the previous Service equals 50% or more of the estimated billing
amount for the new Service;
(c) The previous Service was not disconnected due to non - payment or Diversion (as defined
below);
(d) The previous Service had not been disconnected by the Utility during the last twelve (12)
months for nonpayment; or the previous Service had not been disconnected by the Utility
during the last two (2) consecutive annual billing periods (as defined in Rule No. 7) for
nonpayment; and
(e) Any related closing bill was paid within 30 days of the date of issuance.
If Applicant fails to establish creditworthiness in the manner set forth above, Applicant shall provide
the Utility with a Service deposit to secure payment for Service. As set forth in Rule No. 7 -F,
Customers requiring assistance with the payment of a Service deposit may request an extended
payment plan to make the required payments to establish or reestablish Service.
2. Diversion. If Applicant has committed any form of Diversion (as defined below), the Utility may
require a deposit, and this deposit shall be referred to herein as the Diversion Deposit. For this
rule and Rule No. 7, Diversion shall mean any activity described in California Penal Code section
498(b), as may be amended from time to time. This security shall be in the form of cash,
certificate of deposit, or irrevocable letter of credit, and the amount of this security shall equal that
amount prescribed in Rule No. 7 -B. The Diversion Deposit is a deposit, which is separate from the
Service deposit.
B. REESTABLISHMENT OF CREDIT - ALL CLASSES OF SERVICE
1. An Applicant for residential Service will not be denied service for failure to pay outstanding amounts
for other classes of Service.
2. A Customer who fails to pay bills before they become past due as prescribed in Rule No. 11 -B, and
who further fails to pay such bills by the date indicated on a termination of service notice for
nonpayment of bills, may be required to pay all delinquent amounts and reestablish credit by
depositing the amount prescribed in Rule No. 7 -B. The foregoing will apply regardless of whether or
not Service has been terminated for such non - payment.
3. A Customer may be required to provide security in case the conditions of service or basis on which
credit was originally established have, in the opinion of the Utility, materially changed. A material
change may include a Customer having more than one occurrence of late payments, returned items
(including, but not limited to, bad checks and reversed credit card charges, or Diversion.
ISSUED BY: Effective: by Resolution No.: Dated:
Marcie L. Edwards Superseding Resolution No.: 2001R -192 Dated: 07 -10 -01
General Manager
CITY OF ANAHEIM WATER RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd. Page No. 3.7.1
Anaheim, CA 92805
RULE NO. 7
DEPOSITS
A. GENERAL
The Utility may assess two separate deposits to Customers, (a) a Service deposit; and/or (b) Diversion Deposit (as
defined in Rule No. 6). Service deposits shall be required when an Applicant or Customer is otherwise unable to
satisfactorily meet the creditworthiness requirements set forth in Rule No. 6. The Utility will require Diversion
Deposits as set forth in Rule No. 6.
B. AMOUNT OF DEPOSIT
1. The amount of Service deposit required to secure payment or reestablish credit for Service is twice the
estimated average bill or, in the case of a Customer, an amount equal to twice the Customer's average hill.
Notwithstanding the foregoing, the Utility may reduce the Service deposit amount for the Customer in the
event of extenuating circumstances. A Service deposit shall not be less than the Minimum Deposit as set
forth in Rule No. 21.
For Diversion Deposits, the deposit shall be twice the amount of the estimated loss to the Utility
resulting from the Diversion, but in no case shall the amount be less than the Minimum Diversion
Deposit as set forth in Rule No. 21.
2. If at any time the Utility determines that the amount of an existing deposit or the lack of a deposit, no
longer equals the amount of deposit required, it may require the Customer to provide a deposit or an
increase in the amount of the existing deposit. A reevaluation of the deposit amount will be triggered
when a Customer has more than one occurrence of late payment, returned items (including, but not limited
to, bad checks and reversed credit card charges), or Diversion.
C. RETURN OF DEPOSIT
1. After a Customer closes their account, the Utility will use the Customer's Service deposit and/or Diversion
Deposit to offset any unpaid account balance for Services provided. If any amount remains of the deposit
or deposits after this offset, the Utility will refund the remaining balance to the Customer within a
reasonable time; except the Utility shall not be required to refund any deposit where the cost to the Utiiity
for processing such refund, which is determined to be five dollars ($5.00), exceeds the deposit balance. A
Diversion Deposit will only be returned in accordance with this Rule No. 7 -C.1.
2. For the Service deposit of a Customer who is billed monthly, the Utility will refund the Service deposit
after the Customer has paid their Service bills to the Utility (a) for twelve (12) consecutive monthly billing
periods, and (b) before the bills become past due. If the Customer fails to meet these criteria, the Utility
will review the Customer's account every monthly billing period to determine whether the above -
described criteria have been met and, once the criteria have been met, the Utility will refund the deposit.
For Rule No. 6 and this Rule No. 7 only, monthly billing period means the one month period or portion
thereof of Service that the Customer receives from the Utility.
(Continued)
ISSUED BY: Effective: by Resolution No.: Dated:
Marcie L. Edwards Superseding Resolution No.: 2001R -192 Dated: 07 -10 -01
General Manager
CITY OF ANAHEIM WATER RATES, RULES
Utilities Financial Services AND REGULATIONS
201 S. Anaheim Blvd. Page No. 3.7.2
Anaheim, CA 92805
RULE NO. 7
DEPOSITS
C. RETURN OF DEPOSIT (Continued)
3. For the Service deposit of a Customer who is billed every two months, the Utility will refund the Ser ;ce
deposit after the Customer has paid their Service bills to the Utility (a) for six (6) consecutive bimon
billing periods and (b) before the bills become past due. If the Customer fails to meet these criteria, tne
Utility will review the Customer's account every bimonthly billing period to determine whether the abu �e-
described criteria have been met and, once the criteria have been met, the Utility will refund the Ser-ice
deposit. For Rule No. 6 and this Rule No. 7 only, bimonthly billing period means the two month period or
portion thereof of Service that the Customer receives from the Utility.
4. The Utility will refund the Service deposit after a Customer who is billed annually has timely paid ti:rir
Service bills (a) for two (2) consecutive annual billing cycles and (b) before the bills become past due. If
the Customer fails to meet these criteria, the Utility will not refund the deposit. For every annual biiiing
period after this review, the Utility will review the Customer's account to determine whether the abk've-
described criteria have been met and, once the criteria have been met, the Utility will refund the Servi. :e
deposit. For Rule No. 6 and this Rule No. 7 only, annual billing period means the one year perioi' or
portion thereof of Service that the Customer receives from the Utility.
5. If a Customer switches their billing period, the Utility will not refund a Service deposit until that
Customer meets the requirements of the newly selected billing period.
6. At the Utility's discretion and if a Customer meets the applicable requirements set forth above, me
Utility may return the Service deposit to the Customer or the Utility may transfer the Service deposit to
other accounts under the same Customer's name.
7. The Utility will only make refunds of deposits to that Customer's name appearing on the Customr's
Utility account.
D. INTEREST ON DEPOSITS •
There shall be no interest paid on deposits held by the Utility.
E. SERVICE DEPOSITS FOR TEMPORARY SERVICE
Service deposits for temporary Service shall be as specified in Rule No. 13, Temporary Service.
•
F. ASSISTANCE WITH SERVICE DEPOSITS
Customers requiring assistance with the payment of the Service deposit may request an extended payment play: to
make the required payments to establish or reestablish Service. If the Customer fails to pay the deposit in
accordance with the payment plan, the Utility may terminate the Customer's Service.
ISSUED BY: Effective: by Resolution No.: Dated:
Marcie L. Edwards Superseding Resolution No.: N/A Dated: N/A
General Manager