The URL can be used to link to this page

Home My WebLink About92-043.? REL:5/8/9~ RESOLUTION NO. 92- 043 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PROVIDING FOR ANNUAL ADJUSTMENTS TO THE WATER RATE OF THE CITY OF SANTA ANA BASED ON CHANGES IN THE COST OF WATER WHEREAS, the City of Santa Ana maintains a municipal water system for the furnishing of water to residents and inhabitants of the City of Santa Ana and has adopted the water rate for the sale and distribution of water; and WHEREAS, it is the policy of the City Council that the City of Santa Ana's water utility be self-supporting from charges made by the City for water furnished to customers and all services rendered in connection therewith; and WHEREAS, Section 31-21 of the Santa provides for the establishment of the water the City Council; Ana Municipal Code rate by resolution of NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: 1. The water rate of $0.732 per 100 cubic feet of water, as established by prior resolution of this council, shall continue in effect until July 1, 1992. 2. On July 1, 1992, and on July 1 of each subsequent calendar year, the water rate shall be adjusted in aocordance that certain "SCHEDULE W-CA, WATER COMMODITY ADJUSTMENT CLAUSE," attached hereto as Exhibit A and incorporated herein by reference. ADOPTED this 18th ATTEST: day of May , 1992. Daniel H. Young Mayor COUNCILMEMBERS: Young Absent Pulido Yes Acosta No Griset Yes McGuigan Yes Norton No Richardson Yes APPROVED AS TO FORM: Edward ~.~o~er~ City Attorne~--~ CERTIFICATE OF ORIGINALITY State of California County of Orange I, JANICE C. GUY, Clerk of the Council, do hereby certify the attached Resolution ~-~k/3 to be the original resolution adopted by the City Council of the City of Santa Ana on ~erk of the C~un~'~, Date City of Santa Ana 2?3 CITY OF SANTA ANA PUBLIC WORKS AGENCY WATER RESOURCES DIVISION HIBIT A SCHEDULE W-CA WATER COMMODITY ADJUSTMENT CLAUSE A. ApDlicabilit¥ Applicable to all customers served by the water utility and to all rate schedule commodity charges. B. Purpose To provide for the automatic adjustment of the City's water rate schedule commodity charge per water billing unit (100 cubic feet) on an annual basis whenever the cost per acre-foot of water is increased or decreased due to changes in the Orange County Water District (OCWD) groundwater replenishment assessment, the cost of electricity associated with water pumping, or the Metropolitan Water District of Southern California (MWD) charge for imported water. To establish the method for determining the cost of water paid by the Utility per acre-foot of water and for calculating any resulting change (to the nearest mill) to the rate schedule commodity charge per water billing unit (100 cubic feet). c. Baseline Cost of Water The cost of water shall be the sum of the percentage of groundwater pumped times the cost of groundwater pumped plus the percentage of imported water times the cost of imported water. The cost of groundwater pumped shall be the sum of the replenishment assessment per acre-foot plus the cost of electricity associated with pumping water per acre-foot. The cost of imported water shall be the charge for treated water from MWD per acre-foot. The baseline cost per water shall be based on the following existing parameters: Percentage of groundwater pumped = 75% Percentage of water imported from MWD = 25% OCWD replenishment assessment = $51 per acre-foot Electricity cost for pumping = $60 per acre-foot MWD charge for treated water = $261 per acre-foot The baseline cost of water shall be initially set at: [.75 x ($51 +$60)] + [.25 x $261] = $148.50. SCHEDULE W-CA Page 2 D. Adjustment Method Computation of the amount of commodity adjustment scheduled for implementation in fiscal year 1992-93 is illustrated in the following example. OCWD replenishment Assessment to be implemented July 1, 1992 = $60 per acre-foot. (No anticipated change in electricity charges) MWD charge for imported water to be implemented July 1, 1992 = $322 per acre-foot. 75% groundwater and 25% imported water shall be used in fiscal year 1992-93. 1992-93 cost of water = [.75 x ($60 + $60)] + [.25 x $322) $170.50 per acre-foot which effective July 1, 1992 becomes new baseline cost of water. 1992-93 commodity adjustment = $170.50 -$148.50 = $22.00 increase per acre-foot. One acre-foot = 43,560 cubic feet = 435.60 billing units 1992-93 commodity adjustment per water billing unit (100 cubic feet) = $22.00 per acre-foot / 435.6 billing units per acre-foot = $0.051 per billing unit The percentage of water to be pumped and the percentage to be purchased shall be established by the Executive Director of the Public Works Agency prior to May 1 of each year based on the Basin Production Percentage assigned to the city of Santa Ana by OCWD. The amount of the commodity adjustment and the data elements used to compute the commodity adjustment shall be shown in the "Commodity Adjustment Summary" each time the commodity adjustment is implemented, beginning with fiscal year 1992-93. E. Application of Commodity Adjustment Prior to May 31, of each year, the Public Works Agency shall prepare the necessary calculations and rate schedule changes based on commodity rate adjustments to become effective the following fiscal year on July 1. 277 SCHEDULE W-CA Page 3 The new rates resulting from any such commodity changes shall be immediately provided to the city Treasury Manager for impl~m@ntation on July 1 of ~hat year. Information on these adjustments shall be provided to the city Manager and City Council. However, no City Council action shall be required to implement these rate changes provided that the procedures and methods for adjustment contained herein are utilized.