88-368RESOLUTION NO. 88R-368
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING
RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF WATER
AS ADOPTED BY RESOLUTION NO. 72R-600 AND AMENDED BY RESOLUTION NOS.
73R-255, 73R-387, 73R-532, 74R-433, 75R-315, 75R-469, 75R-479,
76R-378, 78R-418, 78R-419, 78R-459, 79R-643, 80R-304, 81R-124,
81R-402, 82R-355, 83R-331, 84R-246, 86R-118, 87R-188 and 87R-324.
WHEREAS, the City of Anaheim maintains a water distribution system
for the furnishing of water to residents and inhabitants of the City of
Anaheim and has adopted Water Rates, Rules and Regulations for the sale and
distribution of water; and
WHEREAS, it is the policy of the City Council that Anaheim's Water
Utility shall be self-supporting from charges made by the City for water
furnished to consumers and for services rendered in connection therewith; and
WHEREAS, the Public Utilities Board held a public hearing on
September 15, 1988 and evidence was presented in connection with the proposed
revisions of water rates and fees; and
WHEREAS, the Public Utilities Board considered the California
Environmental Quality Act and made the following findings:
The largest single expenditure category during the test period of July
1, 1988 through June 30, 1989 is water supply at an estimated
$8,292,000.
2. Other operating expenses, estimated to cost $6,118,000 are due to
labor and material costs.
3. Capital expenditures funded from rates, estimated to cost $3,507,000,
is required to meet the Utility's capital project expenses.
Debt service requirements and a decrease in reserve amounts estimated
to cost $3,172,000 are required to meet financial reserves and
requirements.
The transfer to the general fund in an amount estimated to be $797,000
is authorized by the City Charter and constitutes an Intra-City
transfer.
6. The decrease in working capital of $696,000 is required to meet the
Utility's cash requirements.
The fee increases/decreases for service connections, meter
installations, and primary distribution main extensions are due to
labor cost increases, higher material costs for copper and the
increasing length of installations.
The matters covered in 1 through 7 above come within Section 21080 (b)
(8) of the Public Resources Code of the State of California thus the
establishment of these rates are exempt from the California
Environmental Quality Act.
0090g092088
WHEREAS, a Notice of Hearing was published as follows:
On August 31, 1988, notice of the public hearing on water rates was
published in the Orange County Register and proof thereof is on file
with the Secretary of the Public Utilities Board.
On August 31, 1988, notice of public hearing on water rates was
published in the Orange County Edition of the LOS Angeles Times and
proof thereof is on file with the Secretary of the Public Utilities
Board.
WHEREAS, the Public Utilities Board has considered the proposal of
the Public Utilities Department and has considered the evidence presented at
the public hearing; and
WHEREAS, the Public Utilities Board has made the following findings
with respect to the need for an increase in the water rates and fees:
The Water System revenue requirement of the Anaheim Public Utilities
Department will be established, as set forth below, on the basis of
projections for a Test Period consisting of the twelve months July 1,
1988 through June 30, 1989.
2. A reasonable estimate of the revenue requirement for water supply
costs for the test period is 48,292,000 as shown in Exhibit MAB-1.
3. A reasonable estimate of the revenue requirement for other operating
expenses for the test period is $6,118,000 as shown in Exhibit MAB-1.
4. A reasonable estimate of the revenue requirement for capital
expenditures funded from rates for the test period is ~3,507,000.
A reasonable estimate of the revenue requirement for current debt
service, lease payment, RANS interest and principal and reserve
decreases for the test period is $3,172,000 as shown in Exhibit MAB-1.
6. A reasonable estimate of the revenue requirement for transfer to the
General Fund for the test period is $797,000 as shown in Exhibit MAB-1.
A reasonable estimate of the revenue requirement for a decrease in
working capital for the test period is $696,008 as shown in ~xhibit
MAB-1 ·
A reasonable estimate of the revenue requirement offsets due to other
water revenues and interest income for the test period is $454,000 as
shown in Exhibit MAB-1.
0090g092088
9. An estimated revenue requirement of ~20,736,000 as set forth
below, is appropriate for the test period:
10.
11.
12.
ITEM
REVENUE REQUIREMENT
CASH FLOW BASIS
Water Supply Costs
Other Operating Expenses
Capital Expenditures Funded From Rates
Debt Service & Reserve Increase
Transfer to General Fund
Change in Working Capital
Less: Other Water Revenue
and Interest Income
8,292,000
6,118,000
3,507,000
3,172,000
797,000
(696,000)
( 454,000)
Total Revenue Requirement
~20,736,051
It is appropriate to perform a cost-of-service study in order to
determine the allocated revenue requirement for the test period
for the following customer classes: Single-Family Residential;
Multi-Family Residential; Residential Outside City; Commercial/
Industrial; Municipal; Irrigation; and Private Fireline.
The customer class revenue requirements as determined on the basis
of an annualized cost-of-service analysis are shown in Exhibit
RPG-3 and are appropriate. The estimated total allocated
annualized revenue requirement of $20,979,051 as set forth below
is appropriate.
ALLOCATED ANNUALIZED
REVENUE REQUIREMENT
(Cost-Of-Service Basis)
CUSTOMER CLASS
Single-Family Residential
Multi-Family Residential
Residential Outside City
Commercial/Industrial
Municipal
Irrigation
Private Fireline
$9,200,517
4,076,446
425,047
6,172,211
512,221
109,786
482,824
Total $20,979,051
Section 1221 of the City Charter provides that utility rates
charged to a class of consumers shall be uniform within the class
and shall be based on cost of service for the class.
00909092088
13.
On the basis of the preceding finding, the class revenues under the
proposed rates as shown on page 3 of in Exhibit RPG-3 are reasonable
and appropriate:
Customer Class
Revenues At
Proposed Rates
Revenues At Proposed
Rates As A % of
Revenues Based on
Cost-of-Service
Single-Family Residential
Multi-Family Residential
Residential Outside City
Commercial/Industrial
Municipal
Irrigation
Private Firelines
9,195,311 100
4,079,846 100
425,144 100
6,174,879 100
512,502 100
109,740 100
483,214 100
Total $20,980,636 100
14. It is appropriate to continue to fund a Water Capital Replacement Fund
with revenues from the sale of water.
15.
It is appropriate to continue to increase the portion of the Water
Capital Replacement Fund which is funded by revenues from the sale of
water.
16. It is appropriate to increase the Water Utility debt service budget
for 1988/89 from $2,165,000 to $2,377,000.
17. A reasonable estimate for installing service laterals and meter boxes
is shown in Exhibit DXV-2.
18. A reasonable estimate for installing meters is shown in Exhibit DXV-2.
19. A reasonable estimate of acreage fees is shown in Exhibit DXV-2.
WHEREAS, based on the findings hereinabove made, the Public
Utilities Board of the City of Anaheim recommends to the City Council that the
Council adopt the findings of the Public Utilities Board with respect to the
matters contained herein and adopt the water rates and fees shown in Exhibit
RPG-7 and Exhibit DXV-2.
WHEREAS, the City Council has considered the evidence and concurs
with the findings of the Public Utilities Board as set forth hereinabove.
NOW, THEREFORE BE IT RESOLVED that the findings of the Public
Utilities Board be, and they are hereby, adopted by the City Council of the
City of Anaheim.
AP?ROVED AS TO FORM:
0090g092088
OF ANAHEIM
Attes~ ~~
CITY CLERK, Ci~ OF ANAHEIM
CLERK
STA~g OF CAJ~IFORNIA )
COUNTY OF ORANGE ) ss.
CiTY OF P~NAHEIM )
I, ~EONOKA N. SOHL, City Clerk of the City of Auaheim, do hereby certify that
the foregoing Resolution No. 88R-308 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 27th day of September, 1988, by the following vote of the members thereof:
AYES:
COUNCIL M~MBERS: Ehrle, Hunter, Kaywood, Pickler and Bay
NOES: COUNCIL blEMBERS: None
ABSENI. COUNCIL MEMBERS: None
&qD 1 FURTHER CERTIFY that the llayor of the City of Anaheim signed said
Resolution No. 88R-368 on the 28th day of September, 1988.
IN WITNESS WHERJgOF, I have hereunto set my hand and affixed the official seal
of the City of Anaheim this 28tn day of September, 1988.
CITY CLERK OF THE CITY OF ANAHEIM
(SEA~)
I, LEONORA N. SOtlL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 88R-368 duly passed and
adopted by the Anaheim City Council on September 27, 1988.
CITY CLERK OF ~-HE CITY OF ANAHEiM