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RES-2019-037 RESOLUTION NO. 2019- 0 3 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING THE RATES, RULES AND REGULATIONS, WHICH DO NOT MATERIALLY INCREASE RATE-RELATED REVENUES, FOR THE SALE AND DISTRIBUTION OF WATER AS ADOPTED BY RESOLUTION NO. 72R-600 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2018-022 AND DETERMINING THAT SAID ACTIONS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080(B)(8) AND SECTIONS 15061(B)(3) AND 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 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 for water services which are provided by the Anaheim Public Utilities Department("Department"); and WHEREAS, the 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, in support of the foregoing, Department staff reviewed and recommends updating (1) Schedule W-SRA to include a restricted capital reserve account to pay for capital improvements which involves modifications to the rate calculation formula; and (2) Rule Nos. 1, 2, and 17 for limitations on billing corrections for undercharges and a new program that supports public and private school customers by providing interim funding assistance for water facility upgrades with corresponding updates to definitions; and WHEREAS, in order to accomplish this, Department staff reviewed and recommends the modification of Schedule W-SRA,and Rule Nos. 1,2, and 17 of the Water Rates, Rules and Regulations; and WHEREAS, in accordance with Article XIIID of the California Constitution, on January 29, 2019, a Notice of Public Hearing was mailed to property owners of record with the County of Orange as of December 31, 2017 (the most current tax roll data available), and water utility customers of record as of January 17, 2019, providing an explanation of the proposed modifications to Schedule W-SRA and the procedure for submitting written protests of the proposed rate action to the Secretary of the 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 March 7, 2019, and March 14, 2019, notice of the public hearing regarding modifications to Schedule W-SRA of the Water Rates, Rules and Regulations was published in the Anaheim Bulletin and proof thereof is on file with the Secretary of the Public Utilities Board; and WHEREAS, on March 12, 2019, and March 19, 2019, notice of the public hearing regarding modifications to Schedule W-SRA of the Water Rates, Rules and Regulations was published in the Orange County Register and proof thereof is on file with the Secretary of the Public Utilities Board; and WHEREAS, the Public Utilities Board held a public hearing for the rate schedule modifications on March 27, 2019, and evidence was presented in support of the modifications to the Water Rates, Rules and Regulations; and WHEREAS,the Public Utilities Board considered the proposals of the Department and considered the evidence presented at the public hearing; and WHEREAS,the Public Utilities Board made the following findings with respect to the need for the proposed modifications to Schedule W-SRA of the Water Rates, Rules and Regulations: 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 the utility to pay 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 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 insure that financial goals are being accomplished. 4. In setting rates, it is reasonable and appropriate to recognize the benefits that Anaheim Public Utilities customers will realize through having rates for domestic and non-domestic customers remain competitive with other local providers. 5. It is reasonable and appropriate to make modifications to Schedule W-SRA, as set forth in Attachment A, because these modifications will assist with ensuring sufficient funding is available for the Department's capital improvements to its water infrastructure. 6. As supported by the evidence presented to the Public Utilities Board at the public hearing,the proposed modifications to Schedule W-SRA of the Water Rates, Rules and Regulations comply with the substantive requirements of Article XIIID, Section 6 of the California Constitution, including, (1) revenues derived from the proposed modifications shall not exceed the funds required to provide water service; (2)revenues derived from the proposed modifications shall not be used for any purpose other than that for which it is charged; (3) the proposed Schedule W- SRA does not exceed the proportional cost of the water service attributable to any parcel; (4) Schedule W-SRA is only imposed when water service is actually used or immediately available and is not imposed for general governmental services. WHEREAS, it is reasonable and appropriate to modify Rule Nos. 1, 2, and 17, as set forth in Attachment B, to limit the period for back billing for undercharge errors and support public and private school customers by providing interim funding assistance for water facility upgrades; and WHEREAS, the Public Utilities Board considered the requirements of the California Environmental Quality Act (CEQA) and found that the proposed modifications to Schedule W-SRA and Rule Nos. 1, 2, and 17 come within Public Resources Code section 21080(b)(8) and Title 14 of the California Code of Regulations, sections 15061(b)(3) and 15273(a). Thus, the modifications to Schedule W-SRA and Rule Nos. 1, 2, and 17 are exempt from CEQA; and WHEREAS,based on the findings hereinabove made and the public hearing record, the Public Utilities Board recommended that the City Council determine that the modifications to the Water Rates, Rules and Regulations are exempt under CEQA, Public Resources Code section 21080(b)(8) and Title 14 of the California Code of Regulations, sections 15061(b)(3) and 15273(a); and WHEREAS, based on the findings hereinabove made, the Public Utilities Board recommended that the Anaheim 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 reflected in Attachment A and Attachment B, and as more fully set forth in the text of Schedule W-SRA and Rule Nos. 1, 2,and 17, all of which are on file with the Office of the City Clerk; and 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 by the Anaheim City Council as follows: 1. The findings set forth herein are hereby adopted by the Anaheim City Council. 2. The Anaheim City Council hereby determines that, in accordance with CEQA and the State CEQA Guidelines, the modifications to Schedule W-SRA and Rule Nos. 1, 2, and 17 of the Water Rates,Rules and Regulations are exempt from CEQA pursuant to Public Resources Code section 21080(b)(8)and sections 15061(b)(3)and 15273(a)of Title 14 of the California Code of Regulations, because it can be seen with certainty that there is no possibility that the proposed, modifications will have a significant effect on the environment as the modifications primarily recover costs and are administrative in nature. 3. The modifications to the Water Rates, Rules and Regulations shall be, and are hereby adopted by the Anaheim City Council with Schedule W-SRA to become effective July 1, 2019, as reflected in Attachment A, and Rule Nos. 1, 2, and 17 to become effective May 1, 2019, as reflected in Attachment B. 4. The Anaheim Public Utilities General Manager is hereby authorized and directed to prepare,promulgate,publish,and implement changes 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 16th day of Apr i 1 , 2019,by the following roll call vote: AYES: Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O 'Neil NOES:None ABSENT:None ABSTAIN: None CITY OF ANAHEIM t M, Y ' OF THE CI i F ANAHEIM ATTEST: CI LERK OF TH CITY OF ANAHEIM 131945 Attachment A Water Rates, Rules and Regulations Rate Schedules effective July 1 , 2019 CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No. 2.2.1 Anaheim,CA 92805 SCHEDULE W-SRA WATER SYSTEM RELIABILITY ADJUSTMENT APPLICABILITY Applicable to all areas served by the Utility and to all water rate schedule commodity charges. PURPOSE To provide for the automatic adjustment of the Utility's water rate schedule commodity charges per hundred cubic feet through the Water System Reliability Adjustment ("Water System Reliability Adjustment" or "WSRA") for the purpose of recovering projected capital costs,including rehabilitation and construction of water and reclaimed water system infrastructure, and related debt service payments for the Utility. The WSRA will also fund a Capital Reserve Account("Capital Reserve Account"). CALCULATION OF WATER SYSTEM RELIABILITY ADJUSTMENT For rate adjustments occurring on or after July 1, 2019, the amount of the Water System Reliability Adjustment shall be calculated in accordance with the following formula. The Formula is: (a+b-c-d-e) + f g g (expressed to the nearest$0.001 per hundred cubic feet) (a) Expenditures for the Water Utility's capital improvement program less those funded by developer contributions or other contributions,as reflected in the annual budget adopted by the City Council (b) Capital Reserve Account limit, not to exceed the average of the three most recent fiscal year Water Utility capital improvement program budgets adopted by the City Council (c) Capital Reserve Account balance as of the end of the previous fiscal year (d) Bond funds allocated for Capital Expenditures (e) Funds available in the Water System Reliability Adjustment Balancing Account (f) Projected Water Utility debt service payments for the fiscal year (g) Projected water sales for the fiscal year APPLICATION OF WATER SYSTEM RELIABILITY ADJUSTMENT The Water System Reliability Adjustment shall be adjusted by the General Manager to reflect non- reimbursable capital infrastructure and debt service costs, including costs associated with reclaimed water infrastructure,as adopted by the City Council in the annual budget and to fund a Capital Reserve Account to be used for those purposes. The Water System Reliability Adjustment shall be limited to a maximum increase of 7.50 per hundred cubic feet of water consumed per 12-month period("period");there shall be no limit on decreases to the Water System Reliability Adjustment. The Utility shall establish a designated Water System Reliability Adjustment Balancing Account ("Water System Reliability Adjustment Balancing Account")to account for these collections and uses of funds.The funds accounted for in the Balancing Account shall only be used to pay for the capital improvement program as set forth in the formula above. ISSUED BY: Effective: 07-01-19 by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2008R-023 Dated: 03-18-08 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No.2.2.2 Anaheim,CA 92805 SCHEDULE W-SRA WATER SYSTEM RELIABILITY ADJUSTMENT Any funds remaining in the Water System Reliability Adjustment Balancing Account at the end of the given period shall be transferred to the Capital Reserve Account subject to the Capital Reserve Account limit set forth below. If the funding limitations are met during a period and the Water System Reliability Adjustment Balancing Account has a balance, the excess funds shall reduce the WSRA revenue collections in a subsequent period as set forth in the formula above. The Utility shall establish a restricted water Capital Reserve Account to be used solely to pay for non- reimbursable capital infrastructure and related debt service obligations. The Capital Reserve Account limit shall not exceed the average of the three most recent fiscal year Water Utility capital improvement program budgets approved by the City Council. WATER SYSTEM RELIABILITY ADJUSTMENT SUMMARY The amount of the Water System Reliability Adjustment and the data elements required to calculate the amount for the two most recent changes shall be shown in this section. Fiscal Year FY 2016/2017 FY 2017/2018 FY 2018/2019 Effective Date 4/3/2017 4/3/2018 4/3/2019 Budgeted Capital Expenditures Less Developer Contributions(a) $ 19,931,931 $ 22,134,000 $ 32,382,000 Capital Reserve Account limit(b) $ $ $ (Less Capital Reserve Account balance)(c) $ $ $ (Less bond funds allocated for capital expenditures)(d) $ (16,898,641) $ (17,707,200) $ (25,905,600) (Less funds available in Balancing Account) (e) $ - $ - $ (513,364) Total Cash Required for Capital Expenditures(a+b+c+d+e) $ 3,033,290 $ 4,426,800 $ 5,963,036 Projected Debt Service Payments(f) $ 10,194,132 $ 11,007,941 $ 11,088,141 Projected Water Sales(hcf)(g) 24,122,221 23,957,564 25,124,711 Total Capital Costs((a+b+c+d+e)/g) $ 0.126 $ 0.185 $ 0.237 Debt Service Costs(f/g) $ 0.423 $ 0.459 $ 0.441 Gross Water System Reliability Adjustment $ 0.549 $ 0.644 $ 0.678 (Less amount over maximum 7.50 increase) $ (0.024) $ (0.044) $ (0.003) Water System Reliability Adjustment($/hcf) $ 0.525 $ 0.600 $ 0.675 ISSUED BY: Effective: 07-01-19 by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2008R-023 Dated: 03-18-08 General Manager Attachment B Water Rates, Rules and Regulations Rule Nos. 1, 2, and 17, effective May 1 , 2019 CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No. 3.1.1 Anaheim,CA 92805 RULE NO. 1 DEFINITIONS Unless specifically defined below,words or phrases used in the Rates,Rules and Regulations shall be interpreted so as to give them the meaning they have in common usage and to give these Rates, Rules and Regulations their most reasonable application. Added Facilities: The facilities provided by the Utility at the request of an Applicant, which are over and above the Utility's standard facilities as further set forth in Rule No.2 of these Rates,Rules and Regulations. APU: Anaheim Public Utilities. Applicant: The Person,association,corporation or governmental agency applying for Service. 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 Clerk: 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 water Rate Schedules. 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. 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 rights-of-way, easements or private rights-of-way, exclusive of Service Connections,which are owned and operated by the Utility and are used to serve the general public. (Continued) ISSUED BY: Effective: 01-01-17 by Resolution No.: 2016-198 Dated: 10-18-16 Dukku Lee Superseding Resolution No.: 2014-002 Dated: 01-07-14 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No.3.1.2 Anaheim.CA 92805 RULE NO. 1 DEFINITIONS 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 Rates,Rules and Regulations. General Manager: General Manager of the City of Anaheim,Public Utilities Department or a designee. General Water Service: The Class of Service of all Customers, with the exception of Private Fireline Service Customers. 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.One HCF is 748 gallons. Jurisdiction: A specified area within which a Rate Schedule or schedules apply. 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 Enlargement: The enlargement of Distribution Mains beyond existing facilities in accordance with the applicable provisions of the Rates,Rules and Regulations. Main Extension: The extension of Distribution Mains beyond existing facilities in accordance with the applicable provisions of the Rates,Rules and Regulations. 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: 01-01-17 by Resolution No.: 2016-198 Dated: 10-18-16 Dukku Lee Superseding Resolution No.: 2014-002 Dated: 01-07-14 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No.3.1.3 Anaheim,CA 92805 RULE NO. 1 DEFINITIONS Multi-family Accommodation: An apartment building, duplex, mobilehome park, court group, or any other group of residential units located upon a single Premises, providing 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. 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. Private Fireline Service: The piping, fittings, and valving necessary to conduct Potable Water for fire protection purposes from the Distribution Main to the Private Fireline Service assembly backflow prevention device. Public Utilities Board: The Public Utilities Board as appointed by the 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 Charges: Charges in the Rates,Rules and Regulations 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: 01-01-17 by Resolution No.: 2016-198 Dated: 10-18-16 Dukku Lee Superseding Resolution No.: 2014-002 Dated: 01-07-14 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No. 3.1.4 Anaheim.CA 92805 RULE NO. 1 DEFINITIONS 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:Class of Service,Applicability,Rates,Special 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. 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: 01-01-17 by Resolution No.: 2016-198 Dated: 10-18-16 Dukku Lee Superseding Resolution No.: 2014-002 Dated: 01-07-14 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No.3.1.5 Anaheim,CA 92805 RULE NO. 1 DEFINITIONS Rule(s): Tariff Pages which set forth the application of all rates,charges and Services 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 California,Santa Ana Region. 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. School: A public or private K-12 school recognized by the Orange County Department of Education or the Western Association of Schools and Colleges. Special Facilities Charge: The charge made to cover 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 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. 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. Service, 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 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. 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. 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. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2016-198 Dated: 10-18-16 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No. 3.2.1 Anaheim,CA 92805 RULE NO. 2 DESCRIPTION OF SERVICE A. OUANTITIES 1. The Utility will endeavor to supply Potable Water dependably and safely in adequate quantities to meet the reasonable needs and requirements of Customers. 2. The Utility will endeavor to supply Recycled Water when such Recycled Water becomes available and is feasible at the Utility's determination. B. PRESSURES 1. The Utility will generally maintain minimum operating pressures at the Service Connection of not less than twenty-five pounds per square inch (25 psi). Pressures may be lower at times of maximum demands,or because of unusual topography or other special conditions. 2. The Utility will generally maintain maximum operating pressures at the Service Connection of not more than one hundred seventy-five pounds per square inch (175 psi). Pressures may be higher at times of minimum demands,or because of unusual topography or other special conditions. 3. If it is deemed appropriate to either increase or decrease a Customer's on-site pressure,it shall be the responsibility of the developer or Customer to install and maintain any booster pumps, pressure regulators,relief valves,and such other equipment or facilities required by the Utility.The Utility will provide a recommendation as to such requirements to the Planning Department who has full authority to require such installations. C. METHOD OF MEASURING SERVICE All Customer water use will be based on metered volume usage except as provided in these Rates,Rules and Regulations. D. ADDED FACILITIES Added Facilities are considered to be existing,upgraded, or new services or facilities installed and/or used by the Utility at an Applicant's request, except in the instance of a School Applicant who shall install, own, maintain, and/or use the Added Facilities, in addition to the standard facilities, which the Utility would normally install or use, and which represent additional costs to the Utility over normally installed facilities. Added Facilities may include,but are not limited to,those facilities necessary to supply quality,pressure,data monitoring services, or other non-standard services or facilities. Except where provided by Rate Schedule, authorization for or installation of Added Facilities will be made, provided the type of Added Facilities requested is acceptable to the Utility and the Utility agrees to the installation of the Added Facilities,under the following conditions: 1. The Applicant for Added Facilities is also an Applicant for Permanent Service or is a Customer for Permanent Service at the same location. 2. Prior to the Utility authorizing, in the instance of a School Applicant, or installing Added Facilities, the Applicant shall agree to pay for the Added Facilities in the amount determined by the Utility based upon the applicable costs of the services or facilities and,where applicable,ongoing maintenance.At its option,the Utility may finance the Added Facilities when these facilities require capital outlay for water utility equipment or, in the instances of a School Applicant, when D.4 applies, subject to a creditworthiness evaluation. The amount financed by the Utility shall not exceed, on a per project basis,the Applicant's cumulative annual water bill for all accounts over the duration of the repayment schedule for the capital outlay for water utility equipment,and the Applicant shall be responsible for the associated financing costs as set forth in an Added Facilities worksheet mutually agreed to by the Applicant and the General Manager. The Utility may include the Added Facilities charges on the Applicant's Customer bill. (Continued) ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2016-198 Dated: 10-18-16 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No. 3.2.2 Anaheim,CA 92805 RULE NO. 2 DESCRIPTION OF SERVICE D. ADDED FACILITIES(Continued) 3. The Utility may charge the Applicant the balance owed on the cost of installed Added Facilities,less the estimated salvage value of equipment removed, in the event the Applicant breaches the terms of the applicable Added Facilities worksheet. 4. The Utility may provide upfront capital funding assistance to a School Customer, as set forth in an Added Facilities worksheet mutually agreed to by the Applicant and the General Manager,to be used to pay for water facility upgrades under the following conditions:(1)the upgrades are determined by the Utility to meet reliability, sustainability,or efficiency program parameters and are within budget allocations; (2) the repayment duration shall not exceed the estimated useful life of the upgrades;(3) the Applicant shall have documented site control of the facility where the upgrade is to be made;and (4)that facility shall be within the Utility's service territory. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: N/A Dated: N/A 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. Should a Customer request a test more often than once in six (6) months, a Meter test fee will be required to be paid by Customer to cover the cost of the test. This Meter test 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 shall be based on the Utility's labor and material costs to perform the test in accordance with Rule No.23. 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 1. Fast Meters. When,upon testing,the Utility determines a Meter to be registering more than 2%fast, the Utility will refund to the Customer the amount of the overcharge, based on corrected Meter readings,subject to the provisions of paragraph 5 hereof. 2. 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: Effective: 05-01-17 by Resolution No.: 2017-069 Dated: 04-25-17 Dukku Lee Superseding Resolution No.: 2014-002 Dated: 01-07-14 General Manager CITY OF ANAHEIM WATER RATES,RULES Utilities Financial Services AND REGULATIONS 201 S.Anaheim Blvd. Page No.3.17.2 Anaheim,CA 92805 RULE NO. 17 METER TESTS AND ADJUSTMENT OF BILLS FOR ERRORS B. ADJUSTMENT OF BILLS FOR ERROR(Continued) 3. Nonregistering Meters. When,upon testing,the Utility determines a Meter to be nonregistering,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 correct back to the date for which the Utility can reliably determine the overcharge or the undercharge,subject to the provisions of paragraph 5 hereof. 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.1 to B.4,the Public Utilities General Manager may make an undercharge adjustment upon their finding that (1) the 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 four(4)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. 6. In the event that the Utility determines that a billing error occurred and after all billing corrections have been made,the Utility may provide a courtesy credit to Customers as set forth in Rule No.23. ISSUED BY: Effective: by Resolution No.: Dated: Dukku Lee Superseding Resolution No.: 2017-069 Dated: 04-25-17 General Manager CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. 2019-037 adopted at a regular meeting provided by law, of the Anaheim City Council held on the 16th day of April, 2019 by the following vote of the members thereof: AYES: Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil NOES: None ABSTAIN: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand this 19th day of April, 2019. -CITY CLERK OF THE CITY OF ANAHEIM (SEAL)