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Home My WebLink About75B - PUBLIC HEARING - METERED WATER RATEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DONE 2, 2008 TITLE: PUBLIC HEARING - RESOLUTION REVISING THS METERED NATSR RATS AND 3SPPSR 3SRYICS CHARGE OF THS CITY CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER "~ CITY MANAGER RECOMMENDED ACTION Adopt a resolution revising the metered water rate and sewer service charge of the City effective July 1, 2008. DISCUSSION The City's metered water rate and sewer service charge are adjusted annually as part of the overall city budget process. These increases are designed to recover the City's actual cost increases in providing the water and sewer services, repairs and maintenance of the water and sewer infrastructure. Additionally, the increased rates will maintain the City's Capital Improvement Program (CIP) to ensure sufficient water and sewer capacity. With the increased rates to fund the CIP and maintenance programs, we will continue to reduce the number of leaks and spills. Both the water and sewer consumption rates are based on 100 cubic foot (CCF) units of measurement (approximately 748 gallons). The water rate has two tiers. The Base Rate includes consumption up to 44 CCF during a bi-monthly billing period. The typical single family residential customer consumes approximately 40 CCF during a bi-monthly billing period. The Tail Block Rate is charged for all water consumed above the Base Rate allocation. The sewer service charge is a flat charge based on metered water consumption at a premises. The current water Base Rate of $2.085 per CCF is proposed to increase to $2.284. The Tail Block Rate is proposed to increase from $2.480 to $2.695 per CCF. The Sewer Service Charge is proposed to increase from $0.238 to $0.288 per CCF. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended action is not considered a CEQA project. Therefore, no environmental documentation is reguc r~ed1 Public Hearing - Resolution Revising the Metered Water Rate and Sewer Service Charge of the City June 2, 2008 Page 2 FISCAL IMPACT The water Base Rate increase of $0.199 per CCF will add $3.98 to the typical single family monthly water bill of 20 CCF. The typical monthly sewer bill will increase by $1.00. APPROVED AS TO FUNDS AND ACCOUNTS: r '~ ~~~~~ ~~~ ~,~.! Jambs G. s Francisco Gutierrez ') Executive irector 6 Executive Director Public Wor s Agency Finance & Management Services Agency 75B-2 RE: PARCEL NO. 005-152-23 CITY OF SANTA ANA PUBLIC HEARING ON 6/2/08 _ CITY WATER AND SEWER SERVICE INCREASE ~° c: ' '' .~ 4/21 /08 DEAR CITY COUNCIL: I protest the increase of the city water and sewer service. Everything else has akeady increased, except our salaries. It is already very difficult to just cover all our basic needs as it is. Please, do not increase it, making it impossible for an average American Citizen to live a normal life just in filling a gas tank to go to work. Best regards, .r'.~ ~~. Pai-tze Chung Property Owner 75B-3 Lss5/28/08 RESOLUTION NO. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REVISING THE METERED WATER RATE AND SEWER SERVICE CHARGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby, finds, determines and declares as follows: A. The Consumer Price Index -Urban, All Services Component, for the Los Angeles-Riverside-Orange County Area in a twelve month period ending December 31, 2007 (CPI) has risen by approximately 4.1 %. B. Santa Ana Municipal Code, Chapter 39, Article II regulates connection to water mains within the City. 1. Pursuant to Santa Ana Municipal Code section 39.21 the City Council shall set metered water rates by resolution. 2. The metered water rate shall be set to maintain a potable water supply and provide standby readiness. 3. It is necessary to increase the metered water rate to reimburse the City for increases in the direct and indirect costs of water delivery, including purchasing water from the Metropolitan Water District of Southern California and the Orange County Water District, Edison power costs, administrative overhead costs, maintaining essential water delivery and water capital improvement program costs. C. Santa Ana Municipal Code, Chapter 39, Article III regulates connection to sewer mains within the City. 1. Pursuant to Santa Ana Municipal Code section 39.55.4 the City Council shall set reasonable sewerage service fees by resolution. Said fee shall be used to operate, maintain, repair and replace the City owned sewer system and facilities. 2. It is necessary to increase the sewer service charge to reimburse the City for increased costs of repair, replacement and maintenance of the sewer system and facilities, including increased materials, labor and overhead costs and sewer capital improvement program costs. 75B-4 3. The rate increase over and above CPI will be placed into a fund that will be used only to repair and replace sewer mains and laterals located within the street right of way, and which have outlived their useful life and provide preventive maintenance of sewer mains. No moneys from this fund would be placed in the city's general fund. 4. There is a reasonable relationship between the imposition of the fee imposed in that the use of the sewer creates an impact on its condition, requiring its maintenance, repair and replacement. D. On June 2, 2008, the City Council of the City of Santa Ana held a noticed public hearing to review the proposed metered water rate and sewer rate increases. E. Based upon the testimony, reports and other evidence submitted on these matters, this City Council makes the above-specified findings. Section 2: The Metered Water Rate is hereby set as follows: Service Meter Charge - a fixed bi-monthly charge based on meter size Most homes & small businesses have a 5/8" mete . r. 5/8" meter 3/4" meter $ 7.00 1" meter $ 11.00 1.5" meter $ 16.40 2" meter $ 23.40 3" meter $ 46.40 4" meter $116.60 6" meter $186.60 Multifamily Dwelling Unit- $280.00 base meter charge $ 4.20 Water Usage Charge -water consumption charge based on units of one- Hundred cubic feet (750 gallons) U - 44 ccf (units) $2 284 Over 45 ccf (units) $2.695 Multifamily Dwelling 0-44 ccf of water per dwelling unit $2 284 Over 45 ccf per dwelling unit $2.695 Section 3: The Sanitary Sewer Charge is hereby set as follows: 75B-5 Sewer Service Charge Per unit of water Bi-monthly flat charge (un-metered) $0.288 $11.52 Section 4: If any charge, fee, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Section 5: The increased metered water rate and sanitary sewer fees shall be operative from and after July 1, 2008. ADOPTED this day of June, 2008. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Laura Sheedy Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT Councilmembers: Councilmembers: Councilmembers: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY 75B-6 I, PATRICIA E. HEALY, Resolution No. the City of Santa Ana on Date: Clerk of Council, do hereby attest to and certify the attached to be the original resolution adopted by the City Council of Clerk of Council City of Santa Ana 75B-7 NOTICE OF PUBLIC HEARING TO ALL PROPERTY OWNERS AND /OR CUSTOMERS OF CITY WATER AND SEWER SERVICE NOTICE IS HEREBY GIVEN that on June 2, 2008 at 6:00 p.m., or as soon as possible thereafter in the Council Chambers, 22 Civic Center Plaza, Santa Ana, California, the Santa Ana City Council will hold a public hearing to establish certain fees and charges for water and sewer services furnished by the City for Fiscal Year 2008-2009. The fees and charges, if approved by the City Council, will be effective July 1, 2008. A full schedule of fees is below. Interested persons may appear and be heard on any matter. Written protests by those receiving this notice will be considered if submitted no later than 5:00 pm on the day of the hearing to the Office of the Clerk of the Council, Santa Ana City Hall, 20 Civic Center Plaza, Santa Ana, California 92701. For more information call (714) 647-5454. 1. THE PROPOSED INCREASE IN CHARGE: Water Usage Charge Sanitary Sewer Charge Base Rate Increase $0.0949 per CCF* Per Water Unit Used Increase $0.05 per CCF* Tail Block Rate Increase $0.1111 per CCF* Unmetered Increase $2.00 bi-monthly "Water rates are measured on 100 cubic feet (CCF) units (approx. 748 gallons.) The Base Rate is for the first 44 CCF used in a bi-monthly billing period. The Tail Block Rate is for all water used in excess of the base rate limit. Water rates are composed of a service meter charge and a water usage charge. Only the Water Usage Charge component of water fees is proposed to be increased as shown on the chart. The sanitary sewer service fee is charged based on water consumption used at a premise. 2. BASIS UPON WHICH THE AMOUNT OF THE PROPOSED CHANGE IS CALCULATED Water Usage Charge Increase $0.0949 per CCF for the base water rate for increased costs for direct water operations. $0.1111 per CCF for water tail block rate for increased costs for direct water operations. ~ c"~ --- Sewer Charge Increase ~`~ f°r'9 -' .~ $0.05 per CCF for cost of living increase (CPI) for direct sewer operations. -~,~ ~ 3. THE REASON FOR THE INCREASED CHARGE N '` ~ These charge increases are designed to recover the City's actual increased costs in providing the war and sewer services, including repair and maintenance of the water and sewer infrastructure. The typical naq~thl router bill of 20 ~ units would increase by $3.98. The typical monthly sewer bill would increase by $1.00. ~'~`' y Q~ Q ~roPer~-~ ~wnel^ ~ ~~' ~~ Proposed Water Service Char es '~ g~ f I fl ~ 4~n~ ~~Q i ~. ~ U V Current Pro osed 7/1!08 _.. ~~ ~ ~ ~S~ Meter Size 5/8" meter $7.00 $7.00 ~ "' ~~ (~e ~ ~a ,, _ ~ a~ 3/4" meter $11.00 $11.00 1"meter $16.40 $16.40. ~~~ ~ I '~ ~Y~ 1.5" meter $23.40 $23.40 ~ "~° 2" meter $46.40 $46.40 ~ KC~~~S e S 3" meter $116.60 $116.60 ~ 4" meter $186.60 $186.60 dkser?~.e~'t~ 6" meter $280.00 $280.00 Multifamily Dwelling Unit - ~e !~ ~K~ev ~ base meter char e $4.20 $4.20 ~ ~ e j ~~ cc.~r'.~i .e ` way :`, ~ «~. of ~~(~w ~ ~r ~ ~-~a ~~ ~~ ~C v~ 0 - 44 ccf units * $2.085 $2.284 Over 45 ccf units * $2.480 $2.695 wQ~-ear c~u-too ~ttir' ~L4 , 0-44~f~vvater er dwelfin unit* $2.085 $2.284 S~~,Q ], _ ~~ ~ Over 45 ccf r dwellin unit* $2.480 $2.695 ~~~~TTU~U~XXXX((1111 utt v ~CC6GU~~1l~' b~ f~~lb2~b' ~--: _ ( S ~l e NCV~ ~ ~~~'i ~~`2~~U ~ Per unit of water $0.238 $0.288 ~Q~ ~ Bi-month) flat char a un-metered $9.520 $11.520 ~ . ^~ f ~ a ~/ * Proposed rates include $.1042 per ccf automatic pass-through for ~I ~Q Q (d V ~ (~ commodity incre ses or water and electrical costs. % C// t ~/fi~ v CITY OF SANTA ANA PUBLIC WORKS AGENCY M-85 220 S Daisy Avenue PO Box 1988 Santa Ana, CA 92702 Date: April 26, 2008 Subject: Increased Water Charges I just completed reading the notice of "Proposed Increase Charges" for consumer water users. The document abviously was composed by some eager coniver and word manupulator with no reasonable feelings but his own. A very egoistic individual with a very greedy behavior. COST OF LIVING INCREASES: If you can not afford giving cost of living increases, than do not give them! Rest assure the denial will not initiate placing you against the wall and executed. Which sometimes it could warrant such an act. REASON FOR THE INCREASED CHARGE: What a joke!! Before initiating an action which incompases a cost, the action should first be analyzed and bisected before any action is taken. Obviously, some supervisor or supervisers did not use their knowledge in costs and were unable to control expenditures thereby creating this so called "hearing" which , of course, the counsel will approve, thus the consumer will have to pay for the incompetent supervisor(s)'s blunder. It is not illegal to terminate incompetent personnel and be replaced by "new blood" personnel. This action seems warranted. To conclude, it is obvious to expect moving parts to wear and tear themselves out to the extant they have to be repaired or replaced. Every organization expects and is prepaired to spend time and money on a nonfunctional part and The City is no exception. Maintenance is part of having moving parts last its designed operating life and if the City is not capable of maintaining it's operations within the operating costs of the organization than it doomed to failure--sooner or later it will calapse. For what good it will be, I certainly am voting to bury this proposed increase and stop passing your "on person defects" onto the consumer. `ABTA LA VISTA' said Arnold. 75B-9 ~. N ~, ~ :_ ~: ~~ ~ ~ _ ;` ~ ~ ~•-~ ~~ ~ ~ ~~ ~ c~ ~ - ~ v\ ~~ ~ ~ ~~ ~ '~. qtt ~`~ ~ ~! J, ~i 3~! 1.~.~ ~1 '~~~ - ~~~ ~ ~ ~ ;::~~ N y~ ~ ~~''} ~, N ~~3 c rG f O C '~iAC U ~ ~ ~+ w a ~ ~ weviV e4 z~ ~~~ -c ~~ ~_ 2 osio2i2oos CfTY° '. ~ ~l~A To. The Santa Ana City Council Re: the city water and sewer service price increase My property address is 200s N. Green leaf Santa Ana Ca 92706 I feel as a long time resident there is no reason to raise the rate on our sewer or water. There has to be another way. The residents should not have to absorb these cost. Please vote no on this Thank you Ernesto strada 75B-11 05/02/2008 e1~ { , CLE,~.~, ._ _ _~: ~l~~~~A To. The Santa Ana City Council Re: the city water and sewer service price increase My property address is 801 N. Bush St Santa Ana Ca 92701 I feel as a long time resident there is no reason to raise the rate on our sewer or water. There has to be another way. The residents should not have to absorb these cost. Please vote no on this Thank you Ernest Estrada 75B-12 Michael and Sandy Witzigman ' 2825 Augusta Way Santa Ana, CA 92706 We are in strong opposition to the proposed water rate increase. The water rates for residents in Santa Ana have increased tremendously over the last 3 years and currently stand at $2.284/ccf for usage <44 ccf, and $2.695/ccf for usage >44 ccf (2008). That corresponds to increases of 42% and 38% respectively, since 2004. Not only is this a much greater increase than neighboring cities with similar source water and demographics, but leaves residents with some of the highest water rates in the county. According to the Municipal Water District of Orange County's most recent 2007 Retail Domestic Water Commodity Rates and Fixed Charges schedule, Santa Ana charged its residents more than any other north Orange County city for water use (and more than many south Orange County cities more dependent on outside water sources). Per the 2007 published rates, compared to its neighbors, Santa Ana charged 155% more than Orange, 53% more than Anaheim, 19% more than Garden Grove, 374% more than Tustin, and 42% more than Fountain Valley. All of these cities obtain their water from the same sources, approximately 70% from groundwater and 30% purchased from the metropolitan Water District (MWD), with the exception of Tustin which only imports 15% from MWD. However, even cities like Yorba Linda that import approximately 50% of its water still charged less than Santa Ana (which was 33% higher). Why are water rates so high in Santa Ana? A comparable city to study might be Anaheim as its 2006-2007 population of 334,425 closely mirrors Santa Ana's 2006-2007 population of 340,024. Both cities obtain water from the same sources in the same percentages, however, Santa Ana's $2.085 (<44 ccf) and $2.48 (>44 ccf) rates in 2007 were 53% and 82% higher than Anaheim's $1.36 flat rate. With the lower per capita income ($12,152 versus $18,266), Santa Ana residents are much harder pressed to afford these higher water rates. Also noteworthy is the fact that 25.3% of Santa Ana residents live below the poverty level as compared to 14.1% in Anaheim. Water, which is a basic need, should not be highest in this city where the residents can least afford it. Finally, by way of comparison, it should be noted that while Anaheim used 12% of its water funds for capital improvements, Santa Ana used only 8%. In contrast, administrative costs which were only 14% for Anaheim amounted to a staggering 29% for Santa Ana. This comparison suggests that it is administrative costs that need to be addressed, not an increase in the water rates paid by residents. Sincerely Michael Witzigman ~, ~~ v c`-i ~ r... ~ tit 75B-13 Michael and Sandy Witzigman 2825 Augusta Way Santa Ana, CA 92706 May 4th 2 08 ~~ -7 ~ I ~I7~` ~ ~ = ~~~ APdA '~ ~~.ER~~~ ~ ~:[~~C~L Dear Santa Ana City Council: This is a request under the California Public Records Act (Gov. Code § 6250 et seq,) and California Constitution article 1, § 3(b). Please provide copies of the following: (1) The original ordinance by which the City adopted its utility users tax. (2) Every ordinance that subsequently amended or extended the utility users tax. (3) If not already obvious on the face of the documents requested above, all documents that indicates the dates on which the above ordinances were enacted. Sincerely -~ ~s~ Michael Witzigman cc: Timothy Bittle Director of Legal Affairs Howard Jarvis Taxpayers Association 75B-14 1(~ SAY -S d~ lf~ Q May 2, 2008 To: Santa Ana City Council Re: City Water and Sewer Service Price Increase CITE` _ ~ ~w~~A CL~ i, . :~~ICIL I am writing this letter because I'm very concern about the proposed increase in our water and sewer services. With the exception of 4 years in Europe, I have lived my whole life in Santa Ana (I am 45) and I love it. One of the few things that I have not liked is the price we pay for water and sewer services. We have one of the highest rates in all of Orange County, yet in our city resides some of the poorest people in the county. Raising the price is not the answer. Let's start by reviewing the budget and see what can be modified. There are always different ways to achieve the same end results. The residents of Santa Ana should not have to absorb any additional costs. I urge the city council to VOTE NO on this issue. Thank you, Estrada 721 N. Baker Street anta Ana, CA 92706 75B-15 ZQ~ MAY -8 aP9 ~tl= E?S 05/02/2008 To. The Santa Ana City Council Re: the city water and sewer service price increase My property address is 1003. N Bristol Santa Ana Ca 92703 I feel as a long time resident there is no reason to raise the rate on our sewer or water. There has to be another way. The residents should not have to absorb these cost. Please vote no on this Thank you Tina Marie Estrada 75B-16