90-350 RESOLUTION NO. 90R-350
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 MOST RECENTLY AMENDED BY RESOLUTION NO. 89R-361.
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 30, 1990 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 item of cost in the test period
of July 1, 1990 through June 30, 1991 is water
supply at an estimated $8,267,000.
2. Other operating expenses, estimated to cost
$6,877,000 are due to labor and material costs.
3. Debt service requirements and an increase in reserve
amounts estimated to cost $3,340,000 are required to
meet financial reserves and requirements.
4. The transfer to the General Fund in an amount estimated
to be $903,000 is authorized by the City Charter and
constitutes an Intra-City transfer.
5. Capital expenditures funded from rates, estimated to
cost $4,119,000, are required to meet the Utility's
capital project expenses.
6. The decrease in working capital of $949,000 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 August 20, 1990, notice of the public hearing on
water rates was published in the Anaheim Bulletin and
proof thereof is on file with the Secretary of the
Public Utilities Board.
2. On August 20, 1990, 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.
3. On August 20, 1990, 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,
1990 through June 30, 1991.
2. A reasonable estimate of the revenue requirement for
water supply~costs for the test period is $8,267,000
as shown in Exhibit MAB-1.
3. A reasonable estimate of the revenue requirement for
other operating expenses for the test period is
$6,877,000 as shown in Exhibit MAB-1.
4. A reasonable estimate of the revenue requirement for
capital expenditures funded from rates for the test
period is $4,119,000 as shown in Exhibit MAB-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 $3,340,000 as shown in Exhibit MAB-1.
6. A reasonable estimate of the revenue requirement for
transfer to the General Fund for the test period is
$903,000 as shown in Exhibit MAB-1.
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7. A reasonable estimate of the revenue requirement for a
decrease in working capital for the test period is
$949,000 as shown in Exhibit MAB-1.
8. A reasonable estimate of the revenue requirement offsets
~ due to other water revenues and interest income for the
~-~" test period is $595,000 as shown in Exhibit MAB-1.
9. An estimated revenue requirement of $21,962,000 as set
forth below, is appropriate for the test period:
REVENUE REQUIREMENT
ITEM CASH-FLOW BASIS
Water Supply Costs $ 8,267,000
Other Operating Expenses 6,877,000
Capital Expenditures Funded from Rates 4,119,000
Debt Service & Reserve Increase 3,340,000
~ Transfer to General Fund 903,000
Change in Working Capital (949,000)
Less: Other Water Revenue
and Interest Income C595.000)
Total Revenue Requirement $21,962,000
10. It was 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; Multi-Family Residential;
Residential Outside city; Commercial/Industrial;
Municipal; 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 JFA-1 and are appropriate. The
estimated total allocated annualized revenue
requirement of $22,315,250 as set forth below is
appropriate.
ALLOCATED ANNUALIZED
REVENUE REQUIREMENT
CUSTOMER CLASS COST-OF-SERVICE BASIS
Single-Family Residential $ 9,864,071
Multi-Family Residential' 4,373,476
Residential Outside City 452,502
Commercial/Industrial 6,379,116
~ Municipal 601,432
Private Fireline 644.653
Total $22,315,250
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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.
13. On the basis of the preceding finding, the annual class
revenues under the proposed rates as shown on the last
page of Exhibit JFA-2 are reasonable and appropriate:
REVENUES
AT PROPOSED
RATES AS A % OF
REVENUES AT REVENUES BASED ON
CUSTOMER CLASS PROPOSED RATES COST OF SERVICE
Single-Family Residential $ 9,864,071 100%
Multi-Family Residential 4,373,476 100%
Residential Outside City 452,502 100%
Commercial/Industrial 6,379,116 100%
Municipal 601,432 100%
Private Firelines 644.653 100%
Total $22,315,250
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 increase the Water Utility debt
service budget for 1990/91 from $2,716,646 to $2,745,300.
16. It is appropriate to decrease the Water Utility water
supply budget for 1990/91 from $8,610,270 to $8,267,131.
17. It is appropriate to decrease the Water Utility revenue
from sales budget for 1990/91 from $24,117,000 to
$21,962,000.
18. It is appropriate to increase the Water Utility RANS
interest expense for 1990/91 from $223,500 to $234,000.
19. It is appropriate to decrease the Water Utility R&R
Reserve for 1990/91 from $369,000 to $341,000.
20. It is appropriate to decrease the Water Utility General
Fund Transfer for 1990/91 from $913,000 to $903,000.
21. Reasonable estimates for service fees and charges are
contained in the proposed Water Rates, Rules and
Regulations.
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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
water rates and the fees and revised rules and regulation shown in
Exhibit JFA-6 to be effective September 12, 1990.
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.
THE FOREGOING RESOLUTION is approved and adopted by the City
Council of the City of Anaheim on this 11th day of September ,
1990.
ATTEST:
CITY CLERK OF THE CITY OF ANAHEIM
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STATE OF CALIFORNIA )
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. 90R-350 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 11th day of September, 1990, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Daly, Ehrle, Kaywood, and Pickler
NOES: COUNCIL MEMBERS: Hunter
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 90R-350 on the 11th day of September, 1990.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 12th day of September, 1990.
CITY CLERK OF THE CITY OF ~AHEIM
(SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 90R-350, duly passed and
adopted by the Anaheim City Council on September 11, 1990.
CITY CLERK OF THE ~ITY OF ANAHEIM