HomeMy WebLinkAboutCC RES 84-21~ _
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RESOLUTION NO. 8422
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 TUSTIN, CALIFORNIA ADDING A COMMODITY ADJUSTMENT
CHARGE TO THE WATER SERVICE RATES
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WHEREAS, a study of the Tustin water service rate structure
6 has been completed; and
7 WHEREAS, the study hereinabove mentioned recommended that
the rate structure of the Tustin water service be amended to gro-
g vide for a commodity adjustment charge to permit administrative
adjustment of water rates to permit changes in water rates so
9 certain increased costs over the Base Year costs, including the
pump tax and/or basin equity assessment imposed by the Orange
10 County Water District, cost of purchased water and cost of electr i-
cal energy to pump water can be charged to water customers of
11 Tustin; and
12 WHEREAS, the City Council finds and determines that it is
appropriate to amend the resolution of the City of Tustin
13 establishing water service rates to include a commodity adjustment
charge for the purposes described above.
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NOW, THEREFORE, the City Council of the City of Tustin does
15 hereby resolve as follows:
16 1.. Resolution No. 83-7 is hereby amended by adding a new
paragraph as follows:
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"F. Effective April 1, 1984, there is hereby
1g imposed a commodity adjustment charge applicable
to all water usage charges for water sold pursuant
19 to the provisions of Resolution No. 83-7. The City
Manager is hereby authorized and directed to make
20 or cause to be made the charges associated with
the commodity adjustment charge as provided in
21 this subsection F. When the commodity adjustment
charge is first charged to customers under the
22 water service rates or it is increased or de-
creased, the City Manager shall within five (5)
23 days notify the City Council in writing of the
action taken pursuant to this subsection.
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The commodity adjustment charge shall be
25 added to the water usage charges for water sold to
each customer and shall provide for the automatic
26 adjustment for each 100 cubic feet of water sold
whenever the cost per acre foot (A.F.) of water is
27 increased with respect to the Base Year of 1982-83
due to changes in the Orange County Water District
28 (OCWD) pump tax and/or basin equity assessment,
.the East Orange County Water District (EOCWD) acre
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foot charge for treated water and/or the costs of
2 electricity associated with underground water
production.
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The Base Year Costs (Based on 1982-83 fiscal year
4 figures are as follows:
5 Dollars Per
Acre Foot
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7 Cost of purchased water .
from EOCWD $ 155
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OCWD Pump Tax 21
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Electrical Pumping Cost 60
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Basin Equity Assessment 61
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Base Year Water Cost
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Purchased Water 155
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Pumped Water 81
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The Basin Production Percentage established for
15 the City of Tustin by OCWD is currently 60%
pumped and 40% purchased water. If pumped water
16 exceeds 70% of total, the acre foot charge as-
sociated with the Basin Equity Assessment is ap-
17 plicable. The OCWD has the authority to change
these percentages on an annual basis. In the Base
1g Year Tustin water service rates did not include a
basin equity assessment because Tustin did not
1g pump 70% of the water sold to its customers.
20 To the extent that in years after the Base Year
any of the costs shown above are increased or the
21 Basin Equity Assessment is applicable, such in-
creased costs would be recovered by the commodity
22 adjustment charge."
23 2. The attached Exhibit A illustrates the method of
deter mining the amount of a commodity adjustment charge.
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3. Except as provided in .this Resolution, all terms and
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1 conditions of Resolution No. 83-7 shall remain in full force and
effect.
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PASSED AND ADOPTED at a regular meeting of the City Council
3 of the City of Tustin held on the 21st day of
February 1984.
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5 MAYOR PRO TEC1
ATTEST: '
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7 ~`~ CLE
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JGR:ARW:cjs:R:09/26/83:32
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EXHIBIT "A"
Example of a Commodity Adjustment
Base Year Water Sales (Cubic Feet)
Total Sales 5,000,000
Lifeline Rate Sales 497,042
Sales above Lifeline 4,502,958
Base Year Water Requirement (Acre Feet)
Pumped Water 5,940
Purchased Water 7,260
Total Water Supply 13,200
Increase of Purchased Water Costs to $187 per Acre Foot
New Rate $1$7
Old Rate 155
Increase Unit Cost $ 32 per Acre Foot
Amount of Water Purchased in Base Year 7,260 Acre Foot
times increase in unit cost of $32 is $232,320
$ 232,320 Increase Water Cost = $0.052/CCF
4,502,958 CCF Net Sales in Base Year Commodity
Adjustment
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF TUSTIN )
MARY E. WYNN , City C1 erk and ex-officio C1 erk of the City Counc i 1 of the City of
Tustin , Cal i forni a , does hereby certify that the whol e number of the members of
the City Council of the City of Tustin is five; that the above and foregoing
Resolution No. 84-21 was duly and regul arly introduced, passed and adopted at a
regular meeting o~ tfie City Counc i 1 held on the 21st day o f Feb ruary , 1984 , by the
following vote:
AYES COUNCILPERSONS: Edgar, Greinke, Kennedy, Saltarelli
NOES COUNCILPERSONS: None
ABSENT: COUNCILPERSONS: Hoesterey
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i y er
City of Tustin, Califor a