2004-166RESOLUTION NO. 2004R- 166
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
AMEND1NG RATES, RULES AND REGULATIONS FOR THE SALE AND
DISTRIBUTION OF WATER AS ADOPTED BY RESOLUTION NO. 72R-600
AND MOST RECENTLY AMENDED BY RESOLUTION NO. 2004R-65.
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
WHEREAS, sound financial operations of the Public Utilities Department
would be enhanced through the establishment of and contribution to a Water Rate
Stabilization Account; and
WHEREAS, the Public Utilities Board considered and recommended the
proposal of the Public Utilities Department to adopt Rule 24 of the Water Rates, Rules
and Regulations to develop and maintain a Water Rate Stabilization Account; and
WHEREAS, thc 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 this Rule 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, by
Resolution certify that the adoption of the Water Rates, Rules and Regulations is
statutorily exempt under the California Environmental Quality Act, Public Resources
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 by the City Council of the City of Anaheim as
follows:
.
The findings of the Public Utilities Board as set forth herein are hereby
adopted by the City Council of the City of Anaheim.
That Rule 24 establishing the Water Rate Stabilization Account as shown in
Attachment A is hereby adopted by the City Council of the City of Anaheim
and will be effective June 30, 2004.
That the Public Utilities General Manager is authorized and directed to
prepare, promulgate, publish and take any and all actions necessary to
implement Rule 24 of 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 27th day of July ,2004
ATTEST:
(CIT'¢ CL~RK
, ~_9 ~NAHEIM
MAYd~OF T~IE CITY
Pro Tem
OfF THE CITY OF ANAHEIM
54464'June 9.2004
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. 2004-166 was introduced and adopted at a regular meeting provided by law, of the
Anaheim City Council held on the 27th day of July 2004, by the following vote of the members
thereof:
AYES:
MAYOR/COUNCIL MEMBERS: Chavez, Hernandez, McCracken, Tait
NOES:
MAYOR/COUNCIL MEMBERS: None
ABSTAINED: MAYOR/COUNCIL MEMBERS: None
ABSENT: MAYOR/COUNCIL MEMBERS: Pringle
O~= THE CITY OF ANAHEIM
(SEAL)
ATTACHMENT A
PROPOSED WATER RULE 24
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
WATER RATES, RULES
AND REGULATIONS
Page 3.24.1
RULE NO. 24
WATER RATE STABILIZATION ACCOUNT
Ao
PURPOSE
The Water Rate Stabilization Account (WRSA) is established as a means to provide
more stable retail water rates to the customers of the City's water utility.
B,
FUNDING MECHANISM
Expense reimbursements such as water supply cost refunds received from Metropolitan
Water District and Orange County Water District and other miscellaneous credits and
revenue will fund the Water Rate Stabilization Account. The WRSA will be a
regulatory credit account established in accordance with Financial Accounting
Standard #71.
C.
ACCOUNTING
All accounting procedures under this rule will be in compliance with Financial
Accounting Standard #71.
Do
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.:
Kenneth S. Noller Superseding Resolution No.: N/A
Interim General Manager
Dated:
Dated: N/A