2003-239RESOLUTION NO. 2003R- 239
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. 71-478
AND MOST RECENTLY AMENDED BY
RESOLUTION NO. 2003R- 135
WHEREAS, the City of Anaheim (Anaheim) maintains a water production
and distribution system for delivering water to residences and businesses of the City 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 Rates, Rules and Regulations governing water services and fees for
providing water services; and
WHEREAS, a Notice of Hearing of proposed revisions to Schedule WPS,
High Elevation Pumping Surcharge, and Schedule WCA, Water Commodity Adjustment
Clause, was published as follows:
On November 19 and November 26, 2003, notice of the public hearing on
revisions to Schedule WPS, High Elevation Pumping Surcharge, and Schedule WCA, Water
Commodity Adjustment Clause 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 on December 4,
2003, and evidence was presented in support of the proposed revisions to Schedule WPS,
High Elevation Pumping Surcharge, and Schedule WCA, Water Commodity Adjustment
Clause of the Water Rates, Rules and Regulations; and
WHEREAS, the Public Utilities Board considered the proposal of the Public
Utilities Department and has considered the evidence presented at the public heating; and
WHEREAS, the Public Utilities Board has made the following findings with
respect to the need for revisions to 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 also provides that the City Council
shall periodically review rates to insure that financial goals are being accomplished.
3. The proposed revisions to Schedule WPS, High Elevation Pumping
Surcharge, and Schedule WCA, Water Commodity Adjustment Clause, are based on the cost
to provide water services to customers and are necessary to meet the financial goals of the
Anaheim Public Utilities Department.
WHEREAS, the Public Utilities Board considered the requirements of the
California Environmental Quality Act and found that matters covered above come within
Section 21080 (b) (8) of the Public Resources Code of the State of California. Thus, the
establishment of these rates is statutorily exempt from the California Environmental Quality
Act; and
WHEREAS, based on the findings hereinabove made, the Public Utilities
Board of the City of Anaheim recommended to the City Council that the Council adopt the
findings of the Public Utilities Board with respect to the matters contained herein and adopt
the changes to the Water Rates, Rules, and Regulations as shown in Attachment A; and
WHEREAS, based on the findings hereinabove made, the Public Utilities
Board of the City of Anaheim recommended to the City Council that the Council, by
Motion, certify that the adoption of the Water Rates, Rules and Regulations is statutorily
exempt under the California Environmental Quality Act, Public Resource Code, Section
21080 (b) (8), in accordance with Title 14 of the California Administrative Code, Section
15273 (a); and
WHEREAS, the City Council has considered the evidence and concurs with
the findings of the Public Utilities Board as set forth hereinabove.
NOW, THEREFORE BE IT RESOLVED that:
1. The findings of the Public Utilities Board as set forth herein are thereby
adopted by the City Council of the City of Anaheim.
2. The changes to the Water Rates, Rules, and Regulations as shown in
Attachment A are hereby adopted by the City Council of the City of Anaheim and will
become effective January 1, 2004.
3. The 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 December ,2003.
MAYOR OF THE ANAHEIM
ATTEST:
CITY CLERK OF THE CITY OF ANAHEIM
Attachment A
Attachment A
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
WATER RATES, RULES
AND REGULATIONS
SCHEDULE W-PS
HIGH ELEVATION PUMPING SURCHARGE
This rate schedule is eliminated effective with bills rendered after
January 1, 2004
Ao
Co
APPLICABILITY
Applicable to the high elevation area served by the Utility and to all rate schedule
commodity charges. The high elevation area is defined as that area which cannot be
served by gravity flow from the August F. Lenain Filtration Plant.
PURPOSE
To provide for the automatic adjustment of the Utility's water rate schedule commodity
charges per 100 cubic feet to recover the cost of the additional pumping required to
serve customers in the high elevation area.
Also, to establish the method of determining the additional cost per acre foot and any
resulting change (to the nearest mill) to the rate schedule commodity charges per 100
cubic feet.
HIGH ELEVATION PUMPING COSTS
The high elevation pumping costs shall include all the energy costs of all pumps
required to serve the high elevation area only. The electrical costs will be based on
recorded data for the most recent 12-month period or, after expansion of the high
elevation pumping system has stabilized, may be based on the most recent fiscal year,
if appropriate. The electric rate used will be that rate which will be in effect whenever
the high elevation pumping surcharge amount is changed.
AMOUNT OF HIGH ELEVATION ADJUSTMENT
1) The pumping surcharge cost per A.F. is computed by first dividing the total
high elevation pumping costs by the A.F. of water pumped in the high
elevation area as indicated by the following example for June 30, 2002.
$371,029 divided by 6,097 A.F. = $60.85 per A.F.
The A.F. of water pumped is estimated from the 100s of cubic feet sold in the
high elevation area.
2) The pumping surcharge amount is then computed by dividing the cost per A.F.
by 435.6 hundred cubic feet per A.F. See following example for 2002-03:
$60.85 + 435.6 = 0.140 per A.F.
3) The amount of the high elevation commodity adjustment and the data elements
required to compute the commodity adjustment shall be shown in the HIGH
ELEVATION PUMPING SURCHARGE SUMMARY Section each time the
commodity adjustment is changed during the fiscal year.
APPLICATION OF HIGH ELEVATION PUMPING SURCHARGE
The high elevation pumping surcharge for all rate schedules shall be adjusted as
necessary by the Utilities General Manager to reflect the pumping cost per A.F. of
water in the high elevation area. The increased cost of water shall be rounded to the
nearest mill per 100 cubic feet and added to the commodity charge for each rate block
of each water schedule rate charge.
The 22 percent Special Facilities Surcharge defined in Rule No. 15, Section B, is not
applicable to the high elevation pumping surcharge amount.
HIGH ELEVATION PUMPING SURCHARGE SUMMARY
Based on data from the Monthly Pump Report prepared by Water Operations.
FISCAL YEAR 1999/00 2001/02 2002/03 2003/04
Effective Date 07/01/99 08/01/01 09/01/02 08/01/03
Electric Rate 07/01/99 08/01/01 04/01/01 04/01/01
Effective Date
A.F of Water Pumped 5,410 5,880 6,097 6,277
in High Elevation
Area
Booster Pump kWh*
Parkview 546,840 1,053,480 899,160 709,320
Westridge 253,440 198,640 238,560 235,200
Via Arboles 101,430 23,340 64,130 123,600
Hidden Canyon 1,375,680 1,592,640 1,492,200 1,356,480
Weir Canyon 728,800 749,680 729,480 845,640
Summit 335,280 347,280 233,040 366,960
RatesBooster Pump $15&17 [ $316'69° I $351'851[ $371'°291 368,370
Cost Per A.F.- $ [ $58.54 I $59.84 [ $60.851 58.69
Pumping Surcharge $0.134 $0.137 $0.140 0.135
Amount
($ Per 100 Cubic
Feet)
Based on data from the Monthly Pump Report prepared by the Operations
Division, adjusted for any electrical energy displaced by the use of natural gas
or diesel fuel.
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
WATER RATES, RULES
AND REGULATIONS
SCHEDULE W-CA
COMMODITY ADJUSTMENT CLAUSE
This proposed rate schedule will become effective for bills rendered
after January 1, 2004.
APPLICABILITY
Applicable to all areas served by the Utility and to all rate schedule commodity charges.
Bo
PURPOSE
To provide for the automatic adjustment of the Utility's water rate schedule commodity
charges per I00 cubic feet whenever the cost per acre foot (A.F.) of water is increased due
to changes in the Orange County Water District (OCWD) pump tax and basin equity
assessment, the Metropolitan Water District of Southern California (MWD) acre foot
charge for treated and untreated water, and fLxed charges such as a readiness charge, a
connection charge, or a demand charge; and/or the costs of electricity associated with
producing and distributing water.
To provide for the automatic adjustment of the Utility's water rate schedule commodity
charges per 100 cubic feet to recover expenditures made or proposed within a designated
time period, not to exceed one year, to accommodate Federal and/or State mandated rules
and regulations pertaining to water quality.
To establish the method for determining the cost of water per acre foot and any resulting
change (to the nearest mill) to the rate schedule commodity charges per 100 cubic feet.
COST OF PRODUCING AND DISTRIBUTING WATER
The cost of water shall be the sum of the percent of groundwater times its total cost per
A.F. plus the percent of water purchased times its total costs per A.F. (including appropriate
fixed charges). The total cost per A.F. of groundwater is the sum of the OCWD pump tax
plus the cost of electricity to pump water per A.F. The total cost per A.F. of purchased
water is the MWD price per A.F. for treated or untreated water (including appropriate fixed
charges). The cost of distributing water shall include the cost of electricity for the booster
pumps.
AMOUNT OF ADJUSTMENT
Previously, the commodity adjustment calculation included an adjustment for the base year
1971-72 cost of water. Effective September 1, 1996, the calculation methodology shall
remain the same in all respects with the exception of the base-year calculation. The
calculation shall not include a base-year adjustment.
Effective September 1, 1995, the Agricultural Customer Class is combined with the
General Commercial/Industrial Customer Class, thereby, eliminating the Agricultural
Commodity Adjustment.
The percent of groundwater to be pumped and imported water to be purchased (including
fixed charges) established as of July 1 each fiscal year shall apply in any commodity
adjustment computation throughout that fiscal year.
The amount of the commodity adjustment and the data elements required to compute the
commodity adjustment for the most recent changes shall be shown in the COMMODITY
ADJUSTMENT SUMMARY Section.
COST OF WATER QUALITY ADJUSTMENT
The cost of the Water Quality Adjustment shall be calculated in accordance with the
following formula.
The Formula is: a + b + c
d
(expressed to the nearest $0.001 per 100 cubic feet)
(a) water quality improvements for a
The estimated expenditures for
designated period.
An amount equal to five percent (5%) of (a) immediately above.
Water Quality Improvement Adjustment Account ending balance.
The total estimated water sales for a designated period.
(b)
(c)
(d)
A Water Quality Adjustment Account shall be maintained by the Department. Entries to
this account shall include:
(a) An amount equal to water quality expenditures as recorded during the
month.
(b) Less: An amount equal to revenue billed during the time period that is
attributable to the Water Quality Adjustment.
APPLICATION OF COMMODITY ADJUSTMENT
The commodity charge for all rate schedules shall be adjusted as necessary by the Utilities
General Manager to reflect the cost per A.F. of water at that time and to reflect mandated
expenditures for water quality improvements. The increased cost of water shall be rounded
to the nearest mill per 100 cubic feet and added to the commodity charge for each rate
block of each water schedule rate charge.
COMMODITY ADJUSTMENT SUMMARY
The amount of the commodity adjustment and the data elements required to compute the
commodity adjustment for the five most recent changes shall be shown in this section.
Note: The Agriculture commodity adjustment was eliminated. The Domestic
commodity adjustment applies to all customers. (This Table has been simplified to
reflect that change.)
Fiscal Year
Effective Date:
Percent of Source
- Ground Water
- Imported Water
OCWD Pumping Percentage Allowance
OCWD Groundwater (Acre-Foot)
Purchased Water (MWD)
- Treated (Tier 1)
Acre Foot
Percent
- Treated (Tier 2)
Acre Foot
Percent
- Untreated (Tier 1)
Acre Foot
Percent
- Untreated (Tier 2)
Acre Foot
Percent
Total Purchase Water (Acre-Foot)
Total Water (Acre Foot)
OCWD Cost of Producing Water (S/Acre-
Foot)
- Replenishment Assessment
- Basin Equity Assessment
MWD - Water Supply (S/Acre-Foot)
- Treated (Tier 1)
- Treated (Tier 2)
- Untreated (Tier 1)
- Untreated (Tier 2)
- MWD Connection and Readiness to
serve charge (flat $ cost for system)
Cost of Purchased Water (S/Acre-Foot)
Cost of Purchased Water (S/hundred cubic
feet)
2003/2004
8/1/2003
65.9%
34.1%
66.0%
51,642
11,909
15.19%
2,423
3.09%
10,333
13.18%
2,093
2.67%
26,758
78,400
$149.00
$331.00
$413.00
$494.00
$326.00
$407.00
$781,161
$ 221.43
$ 0.531
2003/2004
1/1~004
65.9%
34.1%
66.0%
51,642
11,909
15.19%
2,423
3.09%
10,333
13.18%
2,093
2.67%
26,758
78,400
$149.00
$331.00
$413.00
$494.0O
$326.00
$407.00
$781,161
$ 221.43
$ 0.531
H. Electrical Pumping and Distribution Costs:
Fiscal Year
Effective Date:
Electricity Cost of Local Wells
- Kilowatt hour consumption (all wells)
- Total Eleclricity cost (all wells)
Electricity - Booster Pumps
Kilowatt hour consumption
- Total Electricity costs
Total Electricity Costs (distribution)
Electhcity Cost per Acre-Foot
Electricity Cost per hundred cubic foot
* Booster pumps include kwh and
costs associated with all booster
equipment, including that which
used to be recovered through WPS.
I. System Loss Factor:
Fiscal Year
Effective Date:
Water Distribution (Acre-Feet)
Water Sales (Acre-Feet)
Water Losses (Acre-Feet)
Water System Loss Factor *
2003/2004
8/I/2003
22,578,935
$1,920,255.70
9,476,080
$926,45.4O
$2,846,301.10
$ 54.23
$ 0.130
2003/2004
1/1/2004
22,578,935
$1,920,255.70
13,113,280'
$1,294,415.75'
$3,214,671.45'
* Loss factor is 1.0 - water losses.
2003/2004
8/1/2003
78,400
75,044
3,356
95.72%
2003/2004
1/1/2004
78,400
75,044
3,356
95.72%
$ 61.24
$ 0.141
J. Water Quality Adjustment:
Fiscal Year
Effective Date:
Mandated Quality Expenses
Water Sales (hundred cubic feet)
Water Quality Adjustment
(Per hcf)
2003/2004
8/1/2003
$1,244,174
32,689,375
$ O.O4O
2003/2004
1/1/2004
$1,244,174
32,689,375
$ O.O4O
Summary of the Water Commodity Adjustment
Fiscal Year
Effective Date:
Cost of Purchased Water
Cost of Electricity
Cost for Quality Requirements
Total Calculated WCA
Mitigation (Approved by Council
to limit the overall increase in
water rates to a maximum of 4%).
Water Commodity Adjustment
2003/2004
8/1/2003
$0.531
$0.130
$0.040
$0.701
$(0.036)
$0.665
2003/2004
1/1/2004
$0.531
$0.141
$O.040
$0.712
$(0.036)
$0.676
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 2003Ro239 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 16th day of December 2003, by the following vote of the
members thereof:
AYES: MAYOR/COUNCIL MEMBERS: Pringle, Tait, Chavez, Hernandez
NOES: MAYOR/COUNCIL MEMBERS: None
ABSTAINED: MAYOR/COUNCIL MEMBERS: None
ABSENT: MAYOR/COUNCIL MEMBERS: McCracken
QI'TY CLER¢( OF TI-:iE CITY OF ANAHEIM
(SEAL)