METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA (4)

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THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA RESOLUTION 9142 RESOLUTION OF THE BOARD OF DIRECTORS OF THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA FIXING AND ADOPTING A CAPACITY CHARGE EFFECTIVE JANUARY 1, 2013 WHEREAS, the Board of Directors ("Board") of The Metropolitan Water District of Southern California ("Metropolitan"), pursuant to Sections 133, 134 and 134.5 of the Metropolitan Water District Act (the "Act"), is authorized to fix such rate or rates for water as will result in revenue which, together with revenue from any water standby or availability of service charge or assessment, will pay the operating expenses of Metropolitan, provide for repairs and maintenance, provide for payment of the purchase price or other charges for property or services or other rights acquired by Metropolitan, and provide for the payment of the interest and principal of its bonded debt; and WHEREAS, the capacity charge is a fixed fee imposed (on a dollar per cubic -foot -per -second basis) on member agencies on the amount of capacity used by such member agency and is designed to recover the cost of providing peaking capacity within the distribution system; and WHEREAS, on January 9, 2012, the General Manager presented to the Finance and Insurance Committee of Metropolitan's Board his proposed biennial budget for fiscal years 2012/13 and 2013/l4, determination of total revenues and of revenues to be derived from water sales and firm revenue sources required during the fiscal years 2012/13 and 20 [3/14, and detailed reports for each fiscal year describing each of the proposed rates and charges and the supporting cost of service process, dated December 2011, that (i) describe the rate structure process and design, (ii) show the costs of major service functions that Metropolitan provides to its member agencies, (iii) classify these service functions costs based on the use of the Metropolitan system to create a logical nexus between the revenues required from each of the rates and charges, and (iv) set forth the rates and charges necessary to defray such costs; and WHEREAS, on March 2012, following discussions of proposed revenue requirements, budget and rates by the Finance and Insurance Committee and the Board in meetings from January through February of 2012, board workshops .regarding the proposed budget and future rates and charges held on January 24, February 13, as well as a presentation at the February 28, 2012 meeting of the Executive Committee, and a public hearing at the Finance and Insurance Committee meeting on March 12, 2012, Metropolitan's Board adopted water rates and charges to be effective January 1, 2013 and January 1, 2014; and