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RES-2016-028RESOLUTION NO. 2016- 0 2 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING THE WATER RATES, RULES AND REGULATIONS BY MODIFYING RATES FOR THE SALE AND DISTRIBUTION OF WATER AS ADOPTED BY RESOLUTION NO. 72R-600 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2015-127 AND DETERMINING SAID ACTIONS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080(b)(8) AND SECTION 15273(a) OF TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS. WHEREAS, the City of Anaheim ("Anaheim") maintains a water production, transmission, and distribution system for the distribution of water to residents and businesses of Anaheim and has adopted Water Rates, Rules and Regulations ("WRRR") for the sale and distribution of water; and WHEREAS, the Anaheim Municipal Code authorizes the City Council to approve reasonable WRRR governing water services and fees for providing water services; 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, on April 1, 2015, Governor Brown issued Executive Order B-29-15 (the "Executive Order") finding that conditions of extreme peril to the safety of persons and property continue to exist in California due to water shortage and drought conditions; and WHEREAS, the Executive Order directed the State Water Resources Control Board ("State Board") to impose restrictions to achieve an aggregate statewide 25% reduction in potable water use through February 2016 and adopt other regulations to implement the order; and WHEREAS, on May 5, 2015, the State Board adopted emergency conservation regulations in accordance with the Governor's order, which went into effect on May 18, 2015; and WHEREAS, the State Board later adopted urban water supplier conservation tiers requiring Anaheim to reduce water consumption by twenty percent (20%) as compared to 2013 levels; and WHEREAS, the Anaheim City Council amended Chapter 10.18 of the Anaheim Municipal Code in order to address these regulations and assist Anaheim with meeting the State mandated water reduction targets; and WHEREAS, through requested voluntary and mandatory conservation from residents, businesses and Anaheim departments, Anaheim is currently on track to meet the State mandated 20% conservation standard, which is calculated to be 3.3 billion gallons of water; and WHEREAS, due to the significant reduction in revenue as a result of the State mandated water conservation measures, the amount of revenue being collected is no longer sufficient to maintain current service levels or maintain the financial health of the water utility despite measures taken to contain costs and with the utilization of reserves; and WHEREAS, to address this, the Department continues to undertake cost containment measures and recommends modifications to the Customer Charge component of Schedule W -G and Schedule W-PFL; and WHEREAS, the Department also proposes minor modifications to the text of Schedule W -G and Schedule W-PFL to improve consistency between the two rate schedules; and WHEREAS, on October 27, 2015, a Notice of Public Hearing was mailed to property owners of record with the County of Orange as of December 31, 2014 (the most current tax roll data available), and water utility customers of record as of October 1, 2015, providing an explanation of the proposed water rate action and the procedure for submitting written protests of the proposed rate action to the Secretary of the Anaheim Public Utilities Board ("Public Utilities Board") as well as electronic mail ("e-mail") protests at waterrates@anaheim.net, and proof of mailing thereof is on file with the Secretary of the Public Utilities Board; and WHEREAS, on December 1, 2015 and December 8, 2015, notice of the public hearing was published in the Orange County Register, and proof of publication thereof is on file with the Secretary of the Public Utilities Board; and WHEREAS, on November 26, 2015 and December 3, 2015, notice of the public hearing was published in the Anaheim Bulletin, and proof of publication thereof is on file with the Secretary of the Public Utilities Board; and WHEREAS, the Public Utilities Board held a public hearing on December 16, 2015, and evidence was presented, among other things, in support of the modifications to the WRRR to increase the Customer Charge per meter size as identified in Schedule W -G and Schedule W-PFL and make minor modifications to the text of Schedule W -G and Schedule W- PFL to improve consistency between the two rate schedules; and WHEREAS, the Public Utilities Board considered during the public hearing both the proposal of the Department and the evidence presented and made the following findings with respect to the need for the proposed rate action: 2 1. Section 1221 of the City Charter provides that utility rates charged to a class of customers shall be uniform within the class and shall be based on the cost of service revenue requirement for the class. 2. Section 1221 of the City Charter requires that utility rates shall be sufficient in order to allow for the payment for operations and maintenance of the system; for payment of principal and interest on debt; for creation and maintenance of financial reserves adequate to assure debt service on bonds outstanding; for capital construction of new facilities and improvements of existing facilities, or maintenance of a reserve fund for that purpose; and for payments, as applicable, to the general fund of the City in the amounts set forth in the City Charter. 3. Section 1221 of the City Charter also provides that the City Council shall periodically review rates to ensure that financial goals are being accomplished. 4. There has been a significant reduction in revenue as a result of the State mandated water conservation measures. 5. The amount of revenue being collected is no longer sufficient to maintain current service levels or maintain the financial health of the water utility despite measures taken to contain costs and with the utilization of reserves. 6. It is reasonable and appropriate to modify rates by making modifications to the WRRR to increase the Customer Charge per meter size as identified in the General Water Service (Schedule W -G) and Private Fireline Service (Schedule W-PFL) rate schedules and make minor modifications to the text of Schedule W -G and Schedule W-PFL to improve consistency between the two rate schedules as set forth in Attachment A; and WHEREAS, the Public Utilities Board considered the requirements of CEQA and found that matters covered above come within Section 21080(b)(8) of the Public Resources Code of the State of California, in accordance with Title 14 of the California Code of Regulations, Section 15273(a); 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 the modifications to the Water Rates, Rules and Regulations as set forth in Attachment A; and WHEREAS, based on the findings hereinabove made, the Public Utilities Board recommended to the City Council that the City Council, determine that the modifications of the Water Rates, Rules and Regulations are statutorily exempt under CEQA, in accordance with Public Resources Code, Section 21080(b)(8), in accordance with Title 14 of the California Code of Regulations, Section 15273(a); and WHEREAS, the City Council has considered the evidence and concurs with the findings of the Public Utilities Board as set forth hereinabove. 3 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 that, in accordance with CEQA, the modifications to the Water Rates, Rules and Regulations are exempt under Public Resources Code, Section 21080(b)(8), in accordance with Title 14 of the California Code of Regulations, Section 15273(a). 3. The modifications to the General Water Service (Schedule W -G) and Private Fireline Service (Schedule W-PFL) rate schedules of 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 February 1, 2016. 4. The Public Utilities General Manager is hereby authorized and directed to prepare, promulgate, publish, and take all actions necessary to implement the modifications to the Water Rates, Rules and Regulations as set forth herein. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 26th day of January , 2016, by the following roll call vote: AYES: Mayor Tait and Council Members Kring, Murray, Brandman, and Vanderbilt NOES: None ABSENT: None ABSTAIN: None CITY OF ANAHEIM MA OR OF THE CI Y OF ANAHEIM AT CITY CLERK OF THE CITY OF ANAHEIM 113269 Attachment A Rate Schedules effective February 1, 2016 CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 APPLICABILITY WATER RATES, RULES AND REGULATIONS SCHEDULE W -G GENERAL WATER SERVICE Page No. 2.3.1 This rate schedule is applicable to Customers who consume water for (a) general domestic and household purposes in a single family accommodation, (b) general domestic use in two (2) or more dwelling units using water through a common service and occupying premises held under one ownership such as apartment houses, housing courts, mobile home courts, and planned units and condominium developments serviced through a common service and (c) all commercial, industrial, municipal, residential -agricultural, and agricultural uses. This rate schedule is also applicable to all water service not covered by other specific schedules including landscape watering and Temporary Service. SPECIAL CONDITIONS A. This schedule is subject to Schedules W -CA, W -SRA, and rules and regulations of the Utility. B. A Customer shall not resell water to another person. Each meter point will be considered as one Customer. Water associations or companies taking delivery of water hereunder must take delivery at one point, and distribute and account for each of their members' usage. ISSUED BY: Effective: 02-01-16 by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2015-127 Dated: 02-24-15 General Manager PER METER, PER MONTH Customer Charge: 5/8" X 3/4" Meter $ 9.90 1" Meter 12.97 1 1/2" Meter 18.12 2" Meter 24.26 2 1/2" Meter 30.95 3" Meter 40.79 4" Meter 59.30 6" Meter 110.78 8" Meter 172.56 10+" Meter 303.93 Commodity Charge: (To be added to Customer Charge) Per 100 Cubic Feet $ 0.500 The current water commodity adjustment amount and water system reliability adjustment amount, as applicable, shall be added to the above commodity charge. The explanations of the current water commodity adjustment and water system reliability adjustment amounts are located in Schedules W -CA and W -SRA. Minimum Charge: The minimum charge shall be the monthly customer charge. SPECIAL CONDITIONS A. This schedule is subject to Schedules W -CA, W -SRA, and rules and regulations of the Utility. B. A Customer shall not resell water to another person. Each meter point will be considered as one Customer. Water associations or companies taking delivery of water hereunder must take delivery at one point, and distribute and account for each of their members' usage. ISSUED BY: Effective: 02-01-16 by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2015-127 Dated: 02-24-15 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 APPLICABILITY WATER RATES, RULES AND REGULATIONS SCHEDULE W-PFL PRIVATE FIRELINE SERVICE Page No. 2.4.1 This rate schedule is applicable to all consumers of water within the area served by the Utility for private firelines used for fire protection whether said lines are connected with automatic sprinkling systems or private fire hydrants. SPECIAL CONDITIONS A. This schedule is subject to Schedules W -CA, W -SRA, and rules and regulations of the Utility. B. This schedule is restricted to use for fire extinguishing or for testing purposes, or for testing fire extinguishing equipment. If consumer, in the opinion of the Utility, is using water in a volume that cannot be recorded on the bypass meter, the Utility will discontinue service until a meter is installed (at customer's expense) to record all water used. ISSUED BY: Effective: 02-01-16 by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2015-127 Dated: 02-24-15 General Manager PER METER, PER MONTH Customer Charge: 1" Meter $ 12.97 1 1/2" Meter 18.12 2" Meter 24.26 2 1/2" Meter 30.95 3" Meter 40.79 4" Meter 59.30 6" Meter 110.78 8" Meter 172.56 10+" Meter 303.93 Commodity Charge: (To be added to Customer Charge) For all water supplied as recorded by the detector check valve bypass meter. Per 100 Cubic Feet $ 0.500 The current water commodity adjustment amount and water system reliability adjustment amount, as applicable, shall be added to the above commodity charge. The explanations of the current water commodity adjustment and water system reliability adjustment amounts are located in Schedules W -CA and W -SRA. Minimum Charge: The minimum charge shall be the monthly customer charge. SPECIAL CONDITIONS A. This schedule is subject to Schedules W -CA, W -SRA, and rules and regulations of the Utility. B. This schedule is restricted to use for fire extinguishing or for testing purposes, or for testing fire extinguishing equipment. If consumer, in the opinion of the Utility, is using water in a volume that cannot be recorded on the bypass meter, the Utility will discontinue service until a meter is installed (at customer's expense) to record all water used. ISSUED BY: Effective: 02-01-16 by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2015-127 Dated: 02-24-15 General Manager