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RES-2014-002RESOLUTION NO. 2014- 002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING THE WATER RATES, RULES AND REGULATIONS BY MODIFYING RULE NOS. 1, 9, 11, 17 AND 24 FOR THE SALE AND DISTRIBUTION OF WATER AS ADOPTED BY RESOLUTION NO. 72R -600 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2013 -149. 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 Water 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. 1, 9, 11, 17 and 24 of the Water Rates, Rules and Regulations to, among other things (i) allow fiscal relief, 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. 1, 9, 11, 17 and 24 as set forth in Attachment A in order to further Anaheim's Regulatory Relief Initiative and clarify and update Rule Nos. 1, 9, 11, 17 and 24; 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. 1, 9, 11, 17 and 24 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. 1, 9, 11, 17 and 24 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. 1, 9, 11, 17 and 24 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. 1, 9, 11, 17 and 24 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: City of Anaheim. The findings set forth herein are hereby adopted by the City Council of the 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. 1, 9, 11, 17 and 24 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. 1, 9, 11, 17 and 24 will have a significant effect on the environment as the changes are exclusively being made to clarify language and to provide fiscal relief to the Department's customers. 3. The modifications to Rule Nos. 1, 9, 11, 17 and 24 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, 2014. 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. 2 THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 7th day of January , 2014, 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 MAYOR OF THE CITY OF ANAHEIM ATTEST: CITY CLERK OF THE CITY W ANAHEIM 99229 C Attachment A Rule Nos. 1, 9, 11 17 and 24 of the Water Rates, Rules and Regulations al CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 1 DEFINITIONS Page No. 3. 1.1 Unless specifically defined below, words or phrases used in the Rates, Rules and Regulations shall be interpreted so as to give th the meaning they have in common usage and to give these Rates, Rules and Regulations their most reasonable application. Additional Responsible Party: Any Person inhabiting a domestic Service location and benefiting from Service shall be equally responsible for the payment of bills rendered for Services at that location. APU: Anaheim Public Utilities. Applicant: The Person, association, corporation or governmental agency applying for Service under the terms of these Rates, Rules and Regulations. Application: A request to the Utility for Service as distinguished from an inquiry as to the availability of or charges for such Service. Balancing Account: An account designated to account for the Water System Reliability Adjustment rate collections and payment of water system capital expenditures and capital - related Debt Service. Billing Period: The time interval between gathering the data used for billing purposes. Capital Expenditures: Funds used to acquire or upgrade physical assets such as water system property or equipment. This type of outlay is made to maintain or increase the scope of water system operations. CDPH: California Department of Public Health. City: The City of Anaheim, a municipal corporation. City Cleric: The City Clerk of the City of Anaheim, California City Council: The City Council of the City of Anaheim, California Class of Service: The categories of Service established by the various Rate Schedules. The Classes of Service are Residential Service, General Water Service, Private Fireline Service, Temporary Service and Municipal Water Service. County. The County of Orange, California. Customer: The Person in whose name Service is rendered as evidenced by the signature on the Application, contract or agreement for that Service, or, in the absence of a signed instrument, by the receipt of bills or summary bills regularly issued in his name regardless of the identity of the actual Person using the Service. A Customer may also be a party with whom the City of Anaheim is doing business, with or without a billing relationship, or who is receiving benefit of Service under another party's name. Customer Information System (CIS): The computer database and information system that contains all billing and personal data pertaining to Customers including billing rates, historical utility consumption, associated charges and meter information. The focus of the system is at the customer level supported by premise and Service levels. Customer's Mailing Address: The address specified in a Customer's Application or contract, or any other address subsequently given to the Utility by the Customer, to which any notice or other communication is to be mailed. Date of Presentation: The date upon which a bill or notice is mailed or delivered by the Utility to the Customer. Debt Service: Cash required over a given period of time for the repayment of interest and principal on borrowed funds. Distribution Mains: Pipelines located in streets, highways, public ways, easements or private rights -of -ways, exclusive of Service Connections, which are owned and operated by the Utility and are used to serve the general public. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010-200 Dated: -16 -10 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 1 Page No. 3.1.2 East Santa Ana Canyon Area: That portion of land which is subject to terminal reservoir storage fees and transmission main fees as provided for in Rule No. 15 -C of the water Rates, Rules and Regulations. Emergency Situation: Any condition that the General Manager, in his or her sole discretion, determines to constitute an unsafe condition or threat to persons or property and/or adversely affects the integrity or operability of the Water System or the Recycled Water System. Fire Service: The piping, fittings, and valving necessary to conduct Potable Water for dire protection purposes from the Distribution Main to the Fire Service assembly backtlow prevention device. General Manager: General Manager of the City of Anaheim, Public Utilities Department or a designee. General Service: The Class of Service to commercial and industrial Customers, and all other Customers not covered under the other Classes of Service. Gross Area of Applicant's Property: The contiguous land area owned or controlled by an Applicant, including streets, but excluding open areas for which Service will not be required within a Special Facilities District, plus one -half of the land area of the abutting streets to which legal, recorded access exists at the time of application for Service. HCF: The unit of quantity measurement, which the Department uses to measure the amount of Potable Water or Recycled Water delivered to a Customer in hundreds of cubic feet. High Elevation System: The portion of the Utility's Service Area which cannot be served by gravity from the August F. Lenin Filtration Plant. Intermittent Service: Service which, in the opinion of the Utility, is subject to discontinuance for a time or at intervals. Jurisdiction: A specified area within which a Rate Schedule or schedules apply. Low Elevation System: The portion of the Utility's Service Area which can be served by gravity from the August F. Lenin Filtration Plant. Mailed: Any notice or other communication will be considered "mailed" when it is enclosed in a sealed envelope, properly addressed, and deposited in any United States Post Office Box, postage prepaid. Main Extension: The extension of Distribution Mains beyond existing facilities in accordance with the provisions of the Rule applicable to main extensions Mad as part of these Tariff Schedules. Meter: The instrument used for measuring the amount of Potable Water or Recycled Water delivered to a Customer. Month: A thirty -day period. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010 -200 Dated: 11 -16 -10 General Manager CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Senices AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.1.3 Anaheim, CA 92805 RULE NO. 1 Multi- family Accommodation An apartment building, duplex, mobilehome park, court group, or any other group of residential units located upon a single Premises, protiiding the residential units therein meet the requirements for a Single,. Family Accommodation. Hotels, guest or resort ranches, tourist camps, motels, auto courts, and trailer courts, consisting primarily of guest rooms and/or transient accommodations, are not classed as Multi - family Accommodations. Multiple Occupancy Building: A building of multiple occupancy provided with continuous out wall construction including, but not limited to, apartments, condominiums, townhouses, and commercial buildings. Municipal Code: The Municipal Code of the City of Anaheim. Municipal Service: Utility Services supplied to City of Anaheim departments. On -Site Recycled Water System: That portion of the On -Site System composed of Recycled Water facilities. On -Site System. The Potable and/or Recycled water facilities under the control of the Applicant, owner or Customer. The On -Site System is located downstream of the POD, which is normally downstream of the Utility's Meter tailpiece. Permanent Service: Service which, in the opinion of the Utility, is of a permanent and established character. This Service may be continuous, intermittent, or seasonal in nature. Person: Any individual, partnership, corporation, public agency, or other organization operating as a single entity. Planning Department: The Planning Department, and/or its Building Division, of the City of Anaheim, California. Point of Delivery (POD): The point where the piping of the Utility is connected to the piping of the Customer, which is normally downstream of the Utility's Meter tailpiece, regardless of the location of the Meter. Potable Water: Water that meets the standards for human consumption set by the applicable federal, state and local authorities. Premises: All of the real property and apparatus employed in a single enterprise on an integral parcel of land undivided, excepting in the case of industrial, agricultural, oil field, resort enterprises, and public or quasi -public institutions, by a dedicated street, highway, or other public thoroughfare, or a railway. Automobile parking lots constituting a part of and adjacent to a single enterprise may be separated by an alley from the remainder of the premises served. Primary Distribution Mains: The system of Distribution Mains that forms a grid to supply Potable Water to all portions of the Water System These mains generally are located within secondary and higher classification streets, but may be in other rights -of way. Public Utilities Board: The Public Utilities Board as appointed by the City of Anaheim City Council. Public System: The system of facilities under the control of the Utility. The Public System facilities shall be those upstream of the POD to the Customer. Rate Area: A specified area within which a Rate Schedule or schedules apply. Rate Charges: Charges in the Rate Schedules may include the following: Commodity Charge: That portion of the charge for Service which varies with the amount of Potable Water or Recycled Water consumed in accordance with the Rate Schedule. Customer Charge: That portion of the charge for Service which is a fixed amount without regard to Potable Water or Recycled Water consumption in accordance with the Rate Schedule, Minimum Charge: The least amount for which Service will be rendered in accordance with the Rate Schedule. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010-200 Dated: 11 -16 -10 General Manager CITY OF ANAHEIM Utilities Financial Senices 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 1 Page No. 3.1.4 Rates, Rules and Regulations: The rate structure, the Rules, and any regulations as approved by the City Council, governing the use and delivery of Potable and Recycled Water. Rate Schedule: May be one or more Tariff Pages setting forth the charges and conditions for a particular class or type of Service at a given location. A Rate Schedule, as referred to herein, shall include all the wording on the applicable Tariff Page or pages, including but not limited to, the following: Schedule Number, Class of Service, Character or Applicability, Territory, Rates, Conditions, and reference to a Rule or Rules. Recycled Water. Water that is approved for purposes other than human consumption and meets the criteria set forth in Division 4 of Title 22 of the California Code of Regulations, as may be amended from time to time. Recycled Water does not include gray water. Recycled Water Service: The Class of Service supplying Recycled Water to Customers for landscape irrigation; agricultural irrigation; toilet and urinal flushing; cooling towers; construction water, industrial process water, commercial use; groundwater recharge; and enhancement of wildlife habitats. Recycled Water Site Supervisor. The individual designated by the User and approved by the Utility who provides a liaison to the City; oversees the use of Recycled Water on the User's Premises; has the authority to carry out any requirements of the City; is responsible for the operation and maintenance of an On-site Recycled Water System; and prevents potential violations. The individual must have completed a Utility - approved Recycled Water Site Supervisor training program Recycled Water System: The infrastructure needed to provide and deliver Recycled Water to Customers within the Utility's Service Area, including, but not limited to, all pipelines, Service Connections, Meters, pumping stations, reservoirs, and other related facilities. Recycled Water Users' Guide: The Utility's guidelines to be used by an Applicant, Customer, Person, Recycled Water Site Supervisor, User, owner, tenant, property manager, engineer, or contractor in the design, installation, operation and maintenance of On -Site Recycled Water Systems within the Service Area. Regulatory Agency: A public entity legally constituted by federal, state, and local statutes that is authorized to protect public health and water quality within the Service Area. Residential Service: The Class of Service supplying Potable Water to Single and Multi- family Accommodations for household purposes, including Potable Water used on the Premises for sprinkling lawns, gardens and shrubbery; washing vehicles, and other similar and customary purposes pertaining to Single or Multi- family Accommodations. Residential Unit: A residential dwelling unit consisting of a room or group of rooms which do not qualify as Single - Family Dwellings. Residential Units may be used as permanent primary dwellings, as transient tenant accommodations, and by organizations or groups of Persons. When a Residential Unit is used as a permanent primary residence, use shall be Residential Service. When such units are used by a transient tenant, an organization, or a group of Persons, use shall be nondomestic or General Water Service. Revenue: Amount realized from the selling of goods or services before customer discounts or uncollectible write -offs are applied. This does not include amounts collected from sources that are to be deferred in accordance with Governmental Accounting Standards Board (GASB) Statement No. 62. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010 -200 Dated: 11 -16 -10 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 1 DEFINITIONS Page No. 3.1.5 Rule(s): Tariff Pages which set forth the application of all rates, charges and Sen when such applicability is not set forth in and as a part of the Rate Schedules. RWQCB: The Regional Water Quality Control Board of the State of Califomia, Santa Ana Region. Secondary Distribution Mains: The system of Distribution Mains that forms a grid to supply Potable Water from the Primary Distribution Mains to the Service Connection. These facilities are generally located within collector and local streets, but may be in other rights -of -way. The Secondary Distribution Mains include, but are not limited to: pipelines, pressure regulators, and fire hydrant installations. Service: The furnishing of Potable or Recycled Water to a Customer from and out of the Water System or Recycled Water System owned and operated by the Utility through a Meter to the Customer's piping. Service shall only refer to the furnishing of Potable Water where used in Rule No. 15. Service Area.: The geographic area wherein the City of Anaheim is the designated public Potable Water or Recycled Water Service provider. Service Connection: The pipe or tubing, fittings, and valves necessary to conduct Potable Water or Recycled Water from the Distribution Main to and through the Meter. Single - Family Dwelling or Accommodation: A house, apartment, or other dwelling unit which is used as a residence by a single family. Special Facilities: Pumping and storage facilities needed to serve the High Elevation System. Special Facilities Charge: The charge made to corer the cost of the Special Facilities in the High Elevation System. This charge shall be computed by multiplying the gross area of Applicant's property times the Special Facilities Charge Rate. Special Facilities Charge Rate: The average rate to be charged per acre, or fraction of gross area of Applicant's property. This rate is computed by dividing the gross area of the Special Facilities District into the cost of Special Facilities required to supply that district. Special Facilities District: An area within the High Elevation System where a Special Facilities Charge is calculated by the Utility to pay for the Special Facilities within that area Summary Bill: A customer account billing statement that includes charges for multiple Service locations. Any customer with a minimum of two Service locations with single or multiple utility Services can choose to receive a summary bill. Tariff Page: An individual page of the Tariff Schedules. Tariff Schedules: The entire body of effective rates, rentals, charges, and Rules collectively of the Utility, as set forth herein, and including title page, preliminary statement, Rate Schedules, and Rules. Temporary Service: Service for enterprises or activities which are temporary in character or where it is known in advance that Service will be of limited duration. Sen ice, which in the opinion of the Utility, is for operations of a speculative character or the permanency of which has not been established, also is considered Temporary Service. Tract or Subdivision: An area which may be identified by filed subdivision plans or as an area in which a group of dwellings may be constructed about the same time, either by a large scale builder or by several builders working on a coordinated basis. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010-200 Dated: 11-16-10 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 2 Page No. 3.1.6 User. Any Person, Persons or firm issued an approved User Permit by the Utility. They may be the owner, Customer, tenant or property manager, as appropriate. User Permit: A permit issued by the Utility to a Recycled Water Service Applicant after the satisfactory completion of the Service application procedures set forth in the Rates, Rules and Regulations and the Recycled Water Users' Guide. This permit constitutes a contract that legally binds the User to all conditions in the Rates, Rules and Regulations, the Recycled Water Users' Guide, and any and all applicable Regulatory Agency requirements. Utility: The City of Anaheim - Public Utilities Department. Utility's Operating Convenience: The term refers to the utilization, under certain circumstances, of facilities or practices not ordinarily employed which contribute to the overall efficiency of the Utility's operations; it does not refer to Customer convenience or to the use of facilities or adoption of practices required to comply with applicable laws, ordinances, rules or regulations, or similar requirements of public authorities. Water Utility: The water division of the Utility. Water System: The infrastructure needed to provide and deliver Potable Water to Customers within the Utility's Service Area including, but not limited to, all Distribution Mains, Service Connections, Meters, fire hydrants, pressure reducing stations, groundwater wells, pumping stations, reservoirs, and other related facilities. WSSS: The Water Services Standard Specifications of the Utility. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010-200 Dated: 11 -16 -10 General Manager CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Anaheim, CA 92805 RULE NO. 9 RENDERINGAND PAYMENT OF BILLS A. RENDERING OF BILLS OR SUMMARY BILLS Page No. 3.9.1 Billing Period. Bills or Summary Bills for Service will be rendered bimonthly, monthly, or as otherwise provided in the Tariff Schedules. 2. Metered Service. a. Bills or Summary Bills for metered Service will be based on Meter registrations. Meters will be read as required for the preparation of regular bills, Summary Bills, opening bills and closing bills. b. If, because of unusual conditions or for reasons beyond its control, the Utility is unable to read the Customer's Meter on the scheduled reading date, the Utility may bill the Customer for estimated consumption during the Billing Period and make any necessary corrections when a reading is obtained. Estimated consumption for this purpose will be calculated considering the Customer's prior usage, the Utility's experience with other Customers of the same class in that area, and the general characteristics of the Customer's operations. Adjustments for any underestimation or overestimation of a Customer's consumption will be reflected on the first regularly scheduled bill rendered and based on an actual reading following any periods when estimation is required. When a Service start date can be reliably estimated, the undercharge can be computed back to that date, exclusive of Rule No. 17. Physical access to the Meter, sufficient to permit its being read by the Utility, shall be provided by the Customer as a prerequisite to the Utility making any adjustment for consumption billed on an estimated basis. 3. Pro Rata Computation. All bills or Summary Bills for Service rendered will be computed in accordance with the applicable thirty -day Rate Schedule, but the amount of the customer charge, service charge, or minimum charge, specified therein, will be prorated on the basis of the ratio of the number of days Service has been rendered to the number of days in an average month of thirty -days. B. READINGS OF SEPARATE METERS NOT COMBINED For the purpose of billing, each Meter upon the Customer's Premises will be considered separately, and the readings of two or more Meters will not be combined. C. PAYMENT OF BILLS 1. All bills or Summary Bills are due upon receipt Customer shall make payment to the Utility at the City of Anaheim, Division of Collections, by mail to City of Anaheim, 201 South Anaheim Boulevard, P.O. Box 3069, Anaheim, CA 92803, by telephone at 714 - 765 -3300, online at www.anaheim net. or as determined by the General Manager. 2. Customer shall pay to the Utility bills for connection or reconnection of Service and deposit payments as required under the Rules before Service will be connected or reconnected, or as determined by the General Manager. The Utility shall not provide a Service Connection for a Premise where past due charges, fees and/or penalties exist and the Service Connection requested is from an adult who lived at the Premises when those charges, fees, and/or penalties accrued That adult person shall pay the Utility all past due charges before a Service Connection will be provided. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010 -193 Dated: 11-09-10 General Manager CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.9.2 Anaheim, CA 92805 RULE NO. 9 RENDERING AND PAYMENT OF BILLS The Utility may require payment of a returned check charge equal to that permitted under the City of Anaheim Municipal Code for any check or other negotiable instrument returned from the bank unpaid. In the event that the Utility determines that the returned check or other negotiable returned instrument did not occur as a result of any actions or omissions by the Customer, the Utility may waive the returned check charge. E. FUND VERIFICATION FEE A Fund Verification Fee may be charged to Customers paying by personal check if the Utility deems it necessary to verify that the Customer has sufficient funds in their account if: (1) the Customer does not meet the creditworthiness requirements of Rule No. 6; or (2) the Customer has committed a Diversion as described in Rule No. 6. This fee is contained in Rule No. 21. F. LATE PAYMENT CHARGE A late payment charge of 1.0% may be applied to the total unpaid balance of a Customer account if the Customer's payment is not received by the date indicated on the Customer account bill or Summary Bill. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010 -013 Dated: 10 12 -10 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 11 DISCONTINUANCE AND RESTORATION OF SERVICE Page No. 3.11.1 A. PAST DUE B1I.LS OR SUMMARY BILLS Bills or Summary Bills rendered will be considered past due if not paid within fifteen (15) days after date of presentation. B. NONPAYMENT OF BlI LS 1. When a bill or Summary Bill for Service has become past due and an overdue notice and final notice have been issued, Service may be discontinued if the bill or Summary Bill is not paid within the time required by such notice. A charge will be assessed if personal notification is delivered. Any Customer who contests billed consumption, and has initiated a complaint or requested an investigation within 5 days of receiving said bill or Summary Bill, shall not have Service discontinued for nonpayment during the pendency of an investigation by the City of the Customer's dispute or complaint provided the Customer also keeps current the account for Services as charges accrue in each subsequent billing period. Services shall not be discontinued for nonpayment for any Customer complying with an amortization agreement entered into with the City, provided the Customer also keeps current the account for Services as charges accrue in each subsequent billing period. If in a landlord/residential tenant relationship a landlord is responsible for payment of the water utility bill and the Service is through a master Meter, the Utility shall not terminate residential occupant (i.e., tenant) Service during the pendency of an investigation by the Utility of a Customer dispute or complaint, even if the Customer does not keep current the account for Services or if the Customer has been granted an extension of the period for payment of a bill. 2. Services to a residential Customer will not be discontinued for non - payment when the Customer has established to the satisfaction of the City that such termination would be especially dangerous to the health of the Customer or a full time resident of the Customer's household. Certification from a licensed physician, public health nurse, or a social worker may be required by the City. The City shall make available to Customers, upon request, information regarding agencies and/or organizations that may provide financial assistance. If in a landlord/residential tenant relationship a landlord is responsible for payment of the water utility bill and the Service is through a master Meter, the Utility shall not terminate residential occupant (i.e., tenant) SerN ice if a public health or building officer certifies that termination would result in a significant threat to the health or safety of the residential occupants or the public. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010-037 Dated: 04 -13 -10 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 11 DISCONTINUANCE AND RESTORATION OF SERVICE B. NONPAYMENT OF BILLS (Continued) Page No. 3.11.2 3. A Customer's Service may be discontinued for nonpayment of a bill or Summary Bill for Senice previously rendered hire at any location served by the Utility provided such bill is not paid within 15 days after presentation of a notice that present Service will be discontinued for nonpayment of such bill or Summary Bill for prior Senice. However, residential Service will not be discontinued because of nonpayment of bills for other Classes of Service. The Utility shall not terminate residential occupant (i.e., tenant) Service if a delinquent account relates to another property owned, managed, or operated by the Customer. 4. If a Customer is receiving more than one Service, any or all Services may be discontinued when any Service, regardless of location, is discontinued for nonpayment. However, residential Service will not be discontinued because of nonpayment of bills or Summary Bills for other Classes of Service. The Utility shall not terminate residential occupant (i.e., tenant) Service if a delinquent account relates to another property owned, managed, or operated by the Customer. 5. Under no circumstances may Service be discontinued for nonpayment of a bill or Summary Bill to correct previously billed incorrect charges for a period in excess of the preceding - three months, unless such incorrect charges have resulted from the Customer not abiding by the applicable Tariff Schedules. 6. Bills or Summary Bills collected on the Customer's Premises by a field utility representative shall include a collection fee. This fee is contained in Rule No. 21. 7. On any Saturday, Sunday, legal holiday recognized by the City of Anaheim, or at any time during which the business office of the City is not open to the public, Service will not be discontinued on those days by reason of delinquency in payment for Services. C. UNSAFE EQUIPMENT AND SERVICE DETRIMENTAL TO OTHER CUSTOMERS The Utility may refuse or immediately discontinue Service to a Customer if the Utility determines (1) any part of their phunbing or other equipment, or the use thereof, is unsafe or in violation of applicable laws, ordinances, rules or regulations of public authorities, or (2) any condition or use existing upon the Customer's Premises, which is detrimental to Utility's Facilities or impairs the ability of the Utility to provide Service to it ('.irstomers. The Utility shall not provide Service or continue Service until the conditions described in (1) and (2) of the previous sentence no longer exist. The Utility may provide written or telephonic notice prior to discontinuation of Service when the Utility determines circumstances allow for such notice. The Utility does not assume any responsibility for inspecting or repairing the Customer's plumbing or other equipment or any part thereof and assumes no liability therefor. The Utility will not provide Service to any equipment, the operation of which will be detrimental to the Senice of the Utility or its other Customers, and will discontinue Service to any Customer who continues to operate such equipment after having been given written or telephonic notice by the Utility to cease doing so. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010-03 7 Dated: 04-13-10 General Manager CITY OF ANAHEIM Utilities Financial Senices 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 11 DISCONTINUANCE AND RESTORATION OF SERVICE Page No. 3.11.3 D. FRRAAM The Utility may refuse or discontinue Sen-ice if the Utility determines the acts of the Customer or the conditions upon their Premises indicate (1) an intent to defraud the Utility, or (2) the occurrence of a Diversion as defined in Rule No. 6. A fee will be collected for the investigation of acts of fraud and/or Diversion as set forth in Rule No. 21, provided, however, that said fee shall not limit Customer's liability for any fraud or other Diversion. The Utility may provide written notice prior to discontinuation of Service when the Utility determines circumstances allow for such notice. E. FAILURE TO ESTABLISH OR REESTABLISH CREDl T I& for an Applicant's convenience, the Utility provides Service before Applicant establishes creditworthiness or continues Service to a Customer when creditworthiness has not been reestablished and the Customer fails to establish or reestablish their creditworthiness in accordance with Rule No. 6, the Utility may discontinue Service the following business day after this failure. F. NONCOMPLIANCE Except as otherwise specifically provided in this Rule No. 11, the Utility may discontinue Service to a Customer for noncompliance with the Rates, Rules and Regulations if, after at least five (5) days written notice to the Customer, the Customer has not complied with the notice. The Utility may dispense with the giving of such notice in the event the Utility determines the existence of dangerous conditions or other circumstances that require the immediate discontinuation of Service. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 93R45 Dated: 03 -09 -93 General Manager CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 11 DISCONTINUANCE AND RESTORATION OF SERVICE Page No. 3.11.4 G. CUSTOMER'S REQUEST FOR PERMANENT 5ERVICE DISCONTII�TUANCE When a Customer desires to terminate their responsibility for Service, the Customer shall give the Utility not less than two (2) days notice of their intention and provide (1) the date on which the Customer wishes the termination to become effective, and (2) the address to which the closing bill is to be mailed. A Customer may be held responsible for all Service furnished at the Customer's Premises until two days after receipt of such notice by the Utility or until the date of termination specified in the notice, whichever date is later. H. CUSTOMER'S REQUEST FOR TEMPORARY SERVICE DISCONTINUANCE Where the use of water is seasonal or intermittent, no adjustment will be made for a temporary reduction of usage. Any Customer who resumes Service within twelve months must pay all charges that would have been billed had Service been continuous. 1. RESTORATION - RECONNECTI N CHARGE Prior to restoring Service that has been discontinued for nonpayment of bills or for failure otherwise to comply with the Rates, Rules and Regulations, the Customer shall pay a reconnection charge for each incident in which the Services) was disconnected In the event that the Utility determines that the Customer is not at fault, including situations such as a payment being lost in the mail or other such situations, the Utility may waive the reconnection charge. If Service(s) has been restored illegally or damaged due to tampering, the Customer must compensate the Utility for all damage incurred by the Utility prior to reconnection. The Customer is responsible for all damage incurred by the Utility whether or not Service is reconnected. If Customer requests restoration/reconnection on a day when maximum workload has been scheduled, Customer shall pay an additional charge. These charges are contained in Rule No. 21. J. CUSTOMER'S REOUEST FOR TEMPORARY SHUT OFF AND RESTORATION SERVICES When, at the request of the Customer, the Utility is requested to shut off Service temporarily, the Utility will assess that Customer a Shut -Off Charge. Also, when Service is then restored, the Utility will assess that Customer a Reconnection Charge. The Shut -off Charge and Reconnection Charge are contained in Rule No. 21. K. REQUEST FROM RESIDENTIAL OCCUPANT (TENANT) TO BECOME CUSTOMER If a landlord in a landlord/residential tenant relationship is responsible for the payment of the water utility bill and the account is in arrears, the residential occupant (i.e., tenant) shall have the right to become the Customer without being required to pay the amount due on the landlord's delinquent account. In order for the Utility to make Service available, the residential occupant (i.e., tenant) must agree to the terms and conditions of Service. L. STATE LAW Should there be a conflict between this Rule No. 11 and Public Utilities Code Sections 1000I et, seq., as amended from time to time, the Public Utilities Code and its amendments will prevail. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2010 -037 Dated: 04-13-10 General Manager CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No, 3.17.1 Anaheim, CA 92805 RULE NO. 17 METER TESTS AND ADJUSTMENT OF BILLS FOR ERRORS A. TESTS 1. Customer Request. A Customer may, on notice of not less than one week, require the Utility to test the Meter for the Customer's Service. A Meter test fee will be paid by Customer to cover the cost of the test. This fee will be refunded if the Utility determines the Meter to register more than 2% fast or 2% slow; however, if no such circumstances exist, the Utility will retain the Meter test fee to cover its Meter testing costs. The amount of the Meter test fee required is dependent on the type of Meter to be tested and is contained in Rule No. 2I . A Customer shall have the right to require the Utility to conduct the test in the Customer's presence or in the presence of an expert or other representative appointed by the Customer. The results of the test will be furnished to the Customer within a reasonable time after completion of the test. B. ADJUSTMENT OF BILLS FOR ERROR 2. Fast Meters. When, upon testing, the Utility determines a Meter to be registering more than 2% fast, the Utility will refimd to the Customer the amount of the overcharge, based on corrected Meter readings, subject to the provisions of paragraph 5 hereof. Slow Meters. When, upon testing, the Utility determines a Meter to be registering more than 2% slow, the Utility may bill the Customer for the amount of the undercharge, based on corrected Meter readings, subject to the provisions of paragraph 5 hereof. (Continued) ISSUED BY: Dukku Lee General Manager Effective: by Resolution No.: Dated: Superseding Resolution No.: 99R -142 Dated: 06 -22 -99 CITY OF ANAHEIM Utilities Financial Services 201 S. Anaheim Blvd. Anaheim, CA 92805 WATER RATES, RULES AND REGULATIONS RULE NO. 17 METER TESTS AND ADJUSTMENT OF BILLS FOR ERRORS B. ADJUSTMENT OF BILLS FOR ERROR (Continued) Page No. 3.17.2 3. Nonregistermg Meters. When, upon testing, the Utility determines a Meter to be nonregistenng, the Utility may bill the Customer for the estimate of water consumed but not registered, subject to the provisions of paragraph 5 hereof. The Utility will estimate bills for this purpose based on the Customer's prior use, the Customer's subsequent use correctly metered, the Utility's experience with other Customers of the same class, and the general characteristics of the Customer's operation. 4. In the event of either (a) inaccuracies of Meter reading recording caused by Utility error, or (b) inaccurate bills as a result of Utility clerical or other Utility- caused Meter errors, the Public Utilities General Manager may, at their discretion, correct back to the date for which the Utility can reliably determine the overcharge or the undercharge. In cases where water consumption dates or other factors required for application of Rate Schedules or other provisions are not subject to exact determination or are in question or dispute relative to Service or rate application, the Public Utilities General Manager may establish such factors by tests, analysis, and/or investigations to determine the proper basis for making an adjustment, if any. 5. a. Undercharges. For any errors listed in B. I. to B.4, the Public Utilities General Manager may, at their discretion, make an undercharge adjustment upon their finding that (1) th undercharge occurred through no actions or omissions of the Customer and (2) the Customer had no knowledge of the undercharge or could not have reasonably been aware of it If the Utility can reliably establish the error date or such date determined in the manner set forth in B.4. herein, the undercharge may be computed back to that date provided, however, that in no case will a bill for an undercharge exceed a twelve (12) month period. b. Overcharges. For any errors listed in B.1 to B.4, the Utility may compute back the overcharge to that date or such date determined in the manner set forth in B.4 herein, provided, however, that in no case will a refund for an overcharge exceed a twenty-four (24) month period for all Service schedules unless directed otherwise by the Public Utilities General Manager or a representative designated by the Public Utilities General Manager, 6. In the event that the Utility determines that a billing enwr occurred and after all billing corrections have been made, the Utility may provide a courtesy credit to Customers. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 95R-206 Dated: 12 -19 -95 General Manager CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.24.1 Anaheim, CA 92805 RULE NO. 24 WATER RATE -STABILIZATION ACCOUNT A. PURPO The Water Rate Stabilization Account (WRSA) is established as a means of providing more stable retail water rates to the customers of the Water Utility. B. FUNDING MECHANISM Expense reimbursements such as water supply cost refimds received from the Metropolitan Water District and Orange County Water District and other miscellaneous credits and revenue will fiord the Water Rate Stabilization Account. The WRSA will be a regulatory credit account established in accordance with Governmental Accounting Standards Board (GASB) Statement No. 62. C. ACCOUNTING All accounting procedures under this rule will be in compliance with GASB Statement No. 62. D. OPERATION OF WATER RATE STABILIZATION ACCOUNT The Public Utilities Department will draw on Water Rate Stabilization Account funds to maintain financial performance indicators and goals specified in bond covenants and monitored by financial rating agencies. Included among these indicators and goals is the maintenance of a strong debt service coverage ratio and maximum Water Rate Stabilization Account balance of approximately six months of Water Utility revenue. ISSUED BY: Effective: by Resolution No.: D Dukku Lee Superseding Resolution No.: 2004 -166 Dated: 07 -27 -04 General Manager