RES-1989-361
RESOLUTION NO. 89R-361
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RATES,
RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF WATER AS ADOPTED
BY RESOLUTION NO. 72R-600 AND AMENDED BY RESOLUTION NOS. 73R-255,
73R-387, 73R-532, 74R-433, 75R-315, 75R-469, 75R-479, 76R-378, 78R-418,
78R-419, 78R-459, 79R-643, 80R-304, 81R-124, 81R-402, 82R-355, 83R-331,
84R-246, 86R-118, 87R-188, 87R-324, AND 88R-368.
WHEREAS, the City of Anaheim maintains a water distribution system for
the furnishing of water to residents and inhabitants of the City of Anaheim
and has adopted Water Rates, Rules and Regulations for the sale and
distribution of water; and
WHEREAS, the Public Utilities Board held a public hearing on August 17,
1989 and evidence was presented in connection with the proposed revisions of
Water Rates, Rules and Regulations; and
WHEREAS, the Public Utilities Board considered the California
Environmental Quality Act and made the following findings:
1. The largest single expenditure category during the test period of
July 1, 1989 through June 30, 1990 is water supply at an estimated
$8,484,000.
2. Other operating expenses, estimated to cost $7,070,000 are due to
labor and material costs.
3. Debt service requirements and an increase in reserve amounts
estimated to cost $2,871,000 are required to meet financial reserves
and requirements.
4. The transfer to the General Fund in an amount estimated to be
$849,000 is authorized by the City Charter and constitutes an
Intra-City transfer.
5. Capital expenditures funded from rates, estimated to cost
$4,187,000, are required to meet the Utility's capital project
expenses.
6. The decrease in working capital of $737,000 is required to meet the
Utility's operating expenses and capital expenses.
7. The fee increases/decreases for services are due to changes in labor
cost and material cost.
8. The matters covered in 1 through 7 above come within Section 21080
(b) (8) of the Public Resources Code of the State of California.
Thus the establishment of these rates is exempt from the California
Environmental Quality Act.
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WHEREAS, a Notice of Hearing was published as follows:
1. On July 31, 1989, notice of the public hearing on water rates was
published in the Orange County Register and proof thereof is on file
with the Secretary of the Public Utilities Board.
2. On July 31, 1989, notice of the public hearing on water rates was
published in the Orange County Edition of the Los Angeles Times and
proof thereof is on file with the Secretary of the Public Utilities
Board.
WHEREAS, the Public Utilities Board has considered the proposal of the
Public Utilities Department and has considered the evidence presented at the
public hearing; and
WHEREAS, the Public Utilities Board has made the following findings with
respect to the need for changes to the Water Rates, Rules and Regulations:
1. The Water System revenue requirement of the Anaheim Public Utilities
Department has been established, as set forth below, on the basis of
projections for a test period consisting of the twelve months July
1, 1989 through June 30, 1990.
2. A reasonable estimate of the revenue requirement for water supply
costs for the test period is $8,484,000 as shown in Exhibit DML-1.
3. A reasonable estimate of the revenue requirement for other operating
expenses for the test period is $7,070,000 as shown in Exhibit DML-1.
4. A reasonable estimate of the revenue requirement for capital
expenditures funded from rates for the test period is $4,187,000 as
shown on Exhibit DML-1.
5. A reasonable estimate of the revenue requirement for current debt
service, lease payment, RANS interest and principal and reserve
increases for the test period is $2,871,000 as shown in Exhibit
DML-1.
6. A reasonable estimate of the revenue requirement for transfer to the
General Fund for the test period is $849,000 as shown in Exhibit
DML-l.
7. A reasonable estimate of the revenue requirement for a decrease in
working capital for the test period is $737,000 as shown in Exhibit
DML-1.
8. A reasonable estimate pf the revenue requirement offsets due to
other water revenues and interest income for the test period is
$434,000 as shown in Exhibit DML-1.
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9. An estimated revenue requirement of $22,290,000 as set forth below,
is appropriate for the test period:
ITEM
REVENUE REQUIREMENT
CASH-FLOW BASIS
Water Supply Costs
Other Operating Expenses
Capital Expenditures Funded From Rates
Debt Service and Reserve Increases
Transfer to General Fund
Change in Working Capital
Less: Other Water Revenue
and Interest Income
$ 8,484,000
7,070,000
4,187,000
2,871,000
849,000
(737,000)
(434.000)
Total Revenue Requirement
$22,290,000
10. It is appropriate to perform a cost-of-service study in order to
determine the allocated revenue requirement for the test period for
the following customer classes: Single-Family Residential,
Multifamily Residential, Residential Outside City,
Commercial/Industrial, Municipal, Irrigation, and Private Fireline.
11. The customer class revenue requirements, on a utility basis, as
determined by a cost-of-service analysis are shown in Exhibit RHH-1
and are appropriate. The estimated total allocated annualized
revenue requirement of $22,688,809 as set forth below is appropriate.
Customer Class
ALLOCATED ANNUALIZED
REVENUE REQUIREMENT
Cost-of-Service Basis
Single-Family Residential
Multifamily Residential
Residential Outside City
Commercial/Industrial
Municipal
Irrigation
Private Fireline
$10,066,217
4,381,077
458,548
6,485,016
625,529
105,910
566,512
Total
$22,688,809
12. Section 1221 of the City Charter provides that utility rates charged
to a class of consumers shall be uniform within the class and shall
be based on cost of service for the class.
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13. On the basis of the preceding finding, the annual class revenues
under the proposed rates as shown on page 3 of Exhibit RHH-2 are
reasonable and appropriate.
Customer Class
Revenues At
Proposed Rates
(Thousands)
Revenues
At Proposed
Rates As A '\ Of
Revenues Based On
Cost of Service
Single-Family Residential
Multifamily Residential
Residential Outside City
Commercial/Industrial
Municipal
Irrigation
Private Firelines
$10,066,217
4,381,077
458,548
6,485,016
625,529
105,910
566.512
100
100
100
100
100
100
100
Total
$22,688,809
100
14. It is appropriate to continue to fund the Water Capital Replacement
Fund by revenues from the sale of water.
15. It is appropriate to decrease the Water Utility debt service budget
for 1989/90 from $2,377,000 to $2,355,000.
16. It is appropriate to decrease the Water Utility water supply budget
for 1989/90 from $8,664,867 to $8,484,000.
17. It is appropriate to decrease the Water Utility revenue from sales
budget for 1989/90 from $22,507,000 to $22,290,000.
18. Reasonable estimates for service fees and charges are contained in
the proposed Water Rates, Rules and Regulations.
WHEREAS, based on the findings hereinabove made, the Public Utilities
Board of the City of Anaheim recommends to the City Council that the Council
adopt the findings of the Public Utilities Board with respect to the matters
contained herein and adopt the changes to the Water Rates, Rules and
Regulations as shown in Exhibit RHH-6.
WHEREAS, the City Council has considered the evidence and concurs with
the findings of the Public Utilities Board as set forth hereinabove.
NOW, THEREFORE BE IT RESOLVED that the findings of the Public Utilities
Board be, and they are hereby, adopted by the City Council of the City of
Anaheim.
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THE FOREGOING RESOLUTION is approved and adopted by the City Council of
the City of Anaheim this 22nd day of August, 1989.
ATTEST:
~7(s~
CITY CLERK OF THE CITY OF ANAHEIM
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CLERK
STATE OF CALIFOID~IA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 89R-361 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 22nd day of August, 1989, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Daly, Ehrle, Pickler, Kaywood and Hunter
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 89R-361 on the 23rd day of August, 1989.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 23rd day of August, 1989.
~47L~
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 89R-36l duly passed and
adopted by the Anaheim City Council on August 22, 1989.
~~J1_~
CITY CLERK OF THE CITY OF ft-NAHFIM