HomeMy WebLinkAbout2019-110 - Adjusting Rates for Water and Sewer Servicesjmf 11/5/19
RESOLUTION NO. 2019-110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ADJUSTING RATES FOR WATER AND
SEWER SERVICES PROVIDED BY THE CITY OF SANTA
ANA
WHEREAS, Chapter 39 of the Santa Ana Municipal Code, Article II, Sections 39-
19 and 39-36, authorize the City to set and charge fees for the provision of water and
recycled water to customers within the City of Santa Ana and to establish those fees by
resolution; and
WHEREAS, Chapter 39 of the Santa Ana Municipal Code, Article III, Sections
39-55.1, 39-55.2, and 39-55.4, authorize the City to set and charge fees for the
provision of sewer services to customers; and
WHEREAS, this Resolution adjusting water, recycled water, and sewer service
rates shall apply only to Chapter 39 of the Santa Ana Municipal Code, Water and
Sewers; and
WHEREAS, the City previously retained Stantec and Hildebrand Consulting,
independent financial consultants, to review the City's water, recycled water, and sewer
utilities to determine whether rates for service charges are sufficient to meet increased
costs of service, and to prepare a cost of service analysis and rate study (the "Study");
and
WHEREAS, based on the results of the Study (a copy of which is available for
inspection at the City and was also posted on the City's website), increases to the rates
for water, recycled water, and sewer service fees and charges are necessary; and
WHEREAS, the proposed water rate structure includes a variable water usage
charge and a fixed monthly water utility charge, both billed on a bimonthly basis. The
proposed water usage charge is based on the amount of water consumed, measured in
dollars per hundred cubic feet ("CCF") of water delivered to the property. The fixed
monthly water utility charge is independent of the amount of water used and is
determined based on the size of the meter serving the property, as measured in inches;
and
WHEREAS, the proposed water rate structure also includes a pass -through
adjustment mechanism providing for increases to the water usage charge based on
increases in the cost of purchasing potable and/or recycled wholesale water needed to
supply the City's water system that may be imposed on the City by the Orange County
Water District or the Metropolitan Water District; and
Resolution No. 2019-110
Page 1 of 7
WHEREAS, the proposed sewer utility charge is a fixed, monthly charge billed on
a bimonthly basis, based on the size of the meter serving the property, as measured in
inches; and
WHEREAS, the proposed rate structures are for a period of four and one-half
years, and are proposed to take effect January 1, 2020, and to increase each July 1
thereafter commencing July 1, 2020, through and including July 1, 2023; and
WHEREAS, the proposed potable water, recycled water, and sewer service fees
(collectively, the "Fees') are property -related fees within the meaning of article XIII D of
the California Constitution; and
WHEREAS, the revenues derived from the Fees will not exceed the funds
required to provide the services for which the Fees are imposed, and will be used
exclusively for the operation and maintenance of the City's potable water, recycled
water, and sewer systems; and
WHEREAS, the Fees are equitable to all customer classes; and
WHEREAS, the amount of the Fees will not exceed the proportional cost of the
service attributable to each parcel upon which they are proposed for imposition; and
WHEREAS, the Fees will not be imposed on a parcel unless the service for
which such Fees are imposed, is actually used by, or immediately available to, the
owner of the parcel; and
WHEREAS, the Fees will not be imposed for general governmental purposes,
but only for the costs of operation and maintenance of the City's potable water, recycled
water, and sewer systems; and
WHEREAS, article XIII D, section 6 of the California Constitution ("Article XIII D")
requires that prior to imposing any increase to the Fees, the City shall provide written
notice (the "Notice") by mail of the new or increased Fees to the record owner of each
parcel upon which the Fees are proposed for imposition and any tenant directly liable
for payment of the Fees, the amount of the Fees proposed to be imposed on each
parcel, the basis upon which the Fees were calculated, the reason for the Fees, and the
date time and location of a public hearing (the "Hearing") on the proposed Fees; and
WHEREAS, on October 4, 2019, the City distributed notices as required by
Article XIII D regarding the City Council's consideration of the proposed rate
adjustments to the Fees at the November 19, 2019, public hearing to all owners of
record and utility customers in accordance with Article XIII D, Section 6(a)(1) of the
California Constitution and Government Code Section 53755; and
Resolution No. 2019-110
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WHEREAS, upon close of said public hearing, the City did receive 95
written protests to the proposed Fees and therefore there has been no majority protest;
and
WHEREAS, the City Council now desires to establish rates for the Fees,
effective January 1, 2020, at the rates and subject to increases on the dates set forth in
the schedules included as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa
Ana as follows:
Section 1. The adoption of this Resolution falls within a statutory exemption
from environmental review pursuant to sections 15273, 15060(c)(2) of the State
Guidelines for Implementation of the California Environmental Quality Act
(CEQA), which pertain to the establishment, modification, structuring,
restructuring, or approval of rates and charges by public agencies which the
public agency finds are for the purpose of meeting operating expenses, and
pertain to activities that will not result in a direct or reasonably foreseeable
indirect change to the environment and that are not defined as a project under
CEQA Regulations.
Section 2. After considering the material presented in the Study, the City
Council hereby finds as follows:
(a) Revenues derived from the Fees do not exceed the funds required to
provide the property related service;
(b) Revenues derived from the Fees shall not be used for any purpose other
than for which the Fees or charges is imposed;
(c) The amount of the Fees imposed upon any parcel or person does not
exceed the proportional cost of service attributable to the parcel;
(d) The Fees are imposed for services that are actually used by, or
immediately available to, the owner of the property upon which the Fees
are imposed; and
(e) The Fees will not be imposed for general governmental purposes, but only
for the costs of operation and maintenance of the City's potable water,
recycled water, and sewer systems.
Section 3. After receiving public comment and testimony on the new fee
structure for water, sewer and recycled water services provided, and absent a majority
protest to the proposed fee increases, the new fee schedule for water, sewer and
recycled water fees and charges is hereby approved as set forth in Exhibit A attached
hereto and incorporated herein by this reference.
Section 4. The new fee schedule for water, sewer and recycled water services
shall be implemented beginning January 1, 2020, and shall be increased on July 1,
Resolution No. 2019-110
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2020 and annually thereafter, up to the maximum rates set forth in Exhibit A. The
scheduled adjustments authorized by this Section may be made by the City Manager or
designee, without conducting another public hearing or any action on the part of the City
Council.
Section 5. Pursuant to the City's pass -through policy, for Fiscal Years 2020-
2021 through 2023-2024, the water usage charge component of the water service rates
may be further adjusted by the City in an amount equal to any increase in the cost of
purchasing potable and/or recycled wholesale water needed to supply the City's water
system that may be imposed on the City by the Orange County Water District or the
Metropolitan Water District. The increase in rates may not exceed the cost of providing
water service. The adjustments authorized by this Section may be made by the City
Manager or designee, without conducting another public hearing or any action on the
part of the City Council. However, the City shall provide written notice to all affected
owners and customers of record not less than thirty (30) days prior to the effective date
of the rate increase, pursuant to California Government Code Section 53756.
Section 6. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution. To the extent any other resolution of the City conflicts with the
provisions set forth herein, it is the explicit intent of the City Council that the provisions
of this Resolution shall supersede.
ADOPTED this 19th day of November , 2019.
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
John M. Funk
Assistant City Attorney
Resolution No. 2019-110
Page 4 of 7
jmf 11/5/19
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
Pulido,Bacerra, Solorio,Villegas (4)
Penaloza (1)
None (0)
NOT PRESENT: Councilmembers Iglesias.Sarmiento (2)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby certify the attached Resolution No.
2019 -110 to be the original resolution adopted by the City Council of the City of
Santa Ana on November19, 2019.
Date:
Daisy Gome
Clerk of the Council
City of Santa Ana
Resolution No. 2019-110
Page 5 of 7
EXHIBIT A
Water Service Rates
Water Usage ehar8e idullus pier hwmdred cub is feel
Tier 1' $2 03 $2.17 $2.31 $1.36 $1 41
Tier 2•• 54 79 $5.13 $5.46 $5.57 $5 GR
Recycled water $2 15 $2.30 $2.45 $2.50 $2 55
' See Tier I Water Allocation table below
" T let 2 is any amount of water used over the amount allocated In Tier 1
1 Monthly Water Allocatlons
3" 8 3j4'
10,10
31.00
8.5 per
3/4"
18.00
46.50
Dwelling thut
1"
26.00
77.50
1112" $2.50
155.00
2"
84.00
248.00
3"
184.00
542.W
4"
331.0o
976.50
6"
682.50
2,015.00
8` a 3)4"
$20.51
$21 94
$1331
$'_3 sl
374'
$3076
53291
$35.05
$35. 75
$36.47
1.
$5127
$54.85
$58.42
$59.59
$60.78
1 V2"
$102.53
$109 70
$11693
$119,17
$121.55
2'
$164,04
$175.52
$186.93
$190.67
$194.48
3"
$35984
$18396
$409.92
$417,10
$425.44
4"
$645M
5691. 12
$73604
$75(1715
$765.79
6'
$1,332 a)
$1,426.12
$1,510 B2
51,549.20
51,500.38
Resolution No. 2019-110
Page 6 of 7
jmf 11/5/19
Monthly Sewer Utility Charge (by meter size)
S/B"8314"
$5. b0
$5pla
$cal
$6.99
$7.62
3/4"
$7,93
$B.33
$92B
$9.90
$10,79
1"
$12.59
$13.22
514.41
sm71
$1712
2112"
$24,23
925.44
527.73
$3023
$3295
2"
$3810
$40.11
$43.77
54765
55L94
3"
$82,43
586.55
$94.34
$102.93
$111.OR
4"
$147,62
$155.00
$16R.95
$16416
$200.73
6'
$30361
S319.79
$34748
$37815
$412.94
B'
S559, 71
$581JU
$640.59
SOS 24
$161.08
10"
5885,66
5929.94
51.013.0
51.104.96
51.204.3r
SIB" %314"
$BM
$8.82
$9. fil
$10.47
S11.41
3/4'
312.12
$12.73
$13.99
$15.13
516.49
1"
519.57
$2055
$22,40
$24.42
$26.62
111Y'
$38,20
S40.11
$43.72
$47.65
$51.94
2"
$60. 55
S63.58
$69 30
$7554
$R7.34
3"
513132
$13799
S150.30
5163.83
$17857
4"
P3563
$24)41
$269.66
S293.95
$32041
6"
$485.21
$50997
$555.32
$605.30
$659.78
8"
589497
593972
$1,02429
$1,11449
$121636
10"
$1,41641)
$1,481.31
51621II
51..767.06
51.926.12
Non-R@sidentlat
5/8"83/4'
5933
59.R0
$lrlm
51164
$17.r,'9
3/4'
$1352
$14.21)
$15.40
51887
$18.39
1"
52190
$23 00
$25.01
$27.33
$29.79
1112"
542.85
S44 99
$49.04
$53.45
$59.26
2"
568,00
$7140
$77.83
$84.83
$92.45
3"
$147 tit
$155.00
$168.95
$194.1fi
$200.73
4"
$26496
$27R.21
$703.25
$33054
S3G0.29
6"
$545.74
$573.03
$624.G0
$60061
$742.08
8"
$1,006.73
$1,057.07
$1.15221
$1,255.91
51,3GB 94
10"
$2,593,43
$1,673.10
$1,921 GB
$1,987.81
$2.IGG 71
Resolution No. 2019-110
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