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Home My WebLink AboutCC RES 10-57RESOLUTION NO. 10-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADJUSTING WATER SERVICE RATES WHEREAS, the City Council of the City of Tustin finds and determines as follows: 1. An analysis of the Tustin Water Enterprise's water supply, storage, and distribution system improvements has been completed; and 2. The analysis revealed that major storage system improvements are required to maintain system reliability; and 3. The analysis determined that additional funding will be required in order to complete the necessary improvements; and 4. The Tustin Water Enterprise has experienced increased operational costs; and 5. A study of the Tustin Water Enterprise Rate Structure and Financing Plan has been completed; and 6. The study has determined that it has become necessary to adjust water service rates to maintain operations, meet bond covenants, and to finance the recommended capital improvements; and 7. It will be necessary to increase rates over the next five years; and 8. The collective rate adjustments approved herein for the next five years do not exceed the collective rate adjustment identified in the Notice of Proposed Water Rate Increase circulated by the City pursuant to the Proposition 218. The approved rates reduce the rates below the rates proposed in the Notice by a total of 5% in the first two years, and increase rates in years 3 through 5 by 1 % per year to offset (but not exceed) the 5% reduction in the first two years. Therefore the rates collectively do not exceed the rates in the Notice; and 9. The revised rates as set forth herein are reasonable and necessary to cover the costs of operations of the Tustin Water Service delivery for the next five years. NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve as follows: The bi-monthly water usage tiers, rates, charges, and water demand reduction stages are hereby established as follows: Resolution No. 10-57 Page 1 of 6 WATER CONSUMPTION TIERS: Residential /Commercial Multiple Unit Tiers Units 1 S Tier 0-10 2" Tier 11-20 3~ Tier 21-30 4 Tier 31-40 5 Tier 41-50 6 Tier 51-60 7 Tier 61 + FIXED CHARGE: Tiers Units 1S Tier 0-8 2" Tier 9-16 3~ Tier 17-24 4 Tier 25-32 5 Tier 33-40 6 Tier 41-48 7 Tier 49 + Meter Size 7/1 /2010 7/1 /2011 7/1 /2012 7/1 /2013 7/1 /2014 5/8" x 3/4" $24.49 $26.94 $29.63 $32.59 $35.85 1 " $61.23 $67.35 $74.09 $81.50 $89.65 11/2" $122.45 $134.70. $148.17 $162.99 $179.29 2" $195.93 $215.52" $237.07 $260.78 $286.86 3" $367.36 $404.10 $444.51 $488.96 $537.86 4" $612.24 $673.46 $740.81 $814.89 $896.38 6" or La r er $1224.48 $1346.93 $1481.62 $1629.78 $1792.76 Multi le Unit $19.60 $21.56 $23.72 $26.09 $28.70 CAPITAL CHARGE: Meter Size 711 /2010 711 /2011 7/1 /2012 7/1 /2013 7/1 /2014 5/8" x 3/4" $10 $10 $11 $11 $11 1" $12 $12 $13 $13 $14 11/2" $16 $16 $17 $17 $18 2" $22 $23 $23 $24 $25 3" $33 $34 $35 $36 $37 4" $53 $55 $56 $58 $60 6" or Lar er $90 $93 $95 $98 $101 Multi le Unit $8 $8 $9 $9 $9 Resolution No. 10-57 Page 2 of 6 CONSUMPTION CHARGE: Residential Small Meter Consum tion Char a unde r 2" meter size Tiers 1g Tier 2" Tier 3~ Tier 4 Tier 5 Tier 6 Tier 7 Tier Units 0-10 11-20 21-30 31-40 41-50 51-60 61 + 07/01 /2010 $0.58 $1.02 $1.33 $1.65 $1.97 $2.29 $2.62 07/01/2011 $0.70 $1.22 $1.60 $1.99 $2.37 $2.76 $3.17 07/01 /2012 $0.73 $1.29 $1.69 $2.10 $2.56 $2.97 $3.40 07/01/2013 $0.79 $1.38 $1.81 $2.25 $2.79 $3.24 $3.70 07/01/2014 $0.84 $1.48 $1.94 $2.41 $3.05 $3.53 $4.05 Multiple Unit Small Mete r Consum tion Char a unde r 2" meter size Tiers 1s Tier 2" Tier 3~ Tier 4 Tier 5 Tier 6 Tier 7 Tier Units 0-8 9-16 17-24 25-32 33-40 41-48 49 + 07/01 /2010 $0.58 $1.02 $1.33 $1.65 $1.97 $2.29 $2.62 07/01 /2011 $0.70 $1.22 $1.60 $1.99 $2.37 $2.76 $3.17 07/01/2012 $0.73 $1.29 $1.69 $2.10 $2.56 $2.97 $3.40 07/01/2013 $0.79 $1.38 $1.81 $2.25 $2.79 $3.24 $3.70 07/01/2014 $0.84 $1.48 $1.94 $2.41 $3.05 $3.53 $4.05 Lar a Mete r Consum tion Char a 2" meter size ~ reater Tiers 1 g Tier 2" Tier 3~ Tier 4 Tier 5 Tier 6 Tier 7 Tier Units 0-10 11-20 21-30 31-40 41-50 51-60 61 + Hi h $0.71 $1.24 $1.61 $2.00 $2.39 $2.77 $3.17 07/01/2010 Normal $0.64 $1.13 $1.47 $1.82 $2.17 $2.52 $2.89 -- _ Low ---- $0.58_ _$1.0_2 $1.33 $1.65 $1.97 $2.29 $ 2.62 Hi h $0.84 $1.48 $1.93 _ $2.40 __ $2.87 _ $3.34 _ _ $3.83 07/01/2011 Normal $0.77 _ $1.3 5 $1.76 $2.18 $2.61 $3.04 $3.48 Low - ___-_ $0.70 _ __ $1.22 _ _ $1.60 $1.99 _ $2.37 $2.76 $3,17 Hi h $0.89 $1.56 $2.04 $2.54 $3.09 $3.59 _ $4.11 07/01/2012 Normal $0.81 $1.42 $1.85 $2.31 $2.81 $3.27 $3.74 Low $0.73 $1.29 $1.69 $2.10 $2.56 $2.97 $3.40 07/01/2013 High Normal Low _ $0.95_ $0.86 --- --- $0.79 $1.67_ $1.52 - $1.38 __ _$2.19 $1_.99 $1 81 $2.72 $2.47 $2.25 $3.38 _ $3.07__ $2.79 $3_92___ $3.56 _ $3.24 $4.48 $4.07 $3.70 Hi h $1.02 $1.79 $2.34 $2.91 $3.69 $4.27 $4.91 07/01/2014 Normal $0.92 $1.63 $2.13 $2.65 $3.35 $3.88 $4.46 Low $0.84 $1.48 $1.94 $2.41 $3.05 $3.53 $4.05 Hi h Greater t han 110% of rior ear consum tion Normal 90% - 110% of rior ear consum tion Resolution No. 10-57 Page 3 of 6 Low Less than 90% of riot ear consum tion PASS-THROUGH PROVISION: The pass-through provision is cost per unit charge calculated based on the difference between the projected base production cost and the actual production costs, which is divided by total annual consumption. The pass-through provision would not exceed 7% of the annual water charges. See projected production cost table and formula below: The projected base production cast used for the pass-through calculations is $5,261,579. Formula: Pass-through = (Actual Production Cost) - (Projected Base Production Cost) Total Annual Consumption Fire Meter Charge: Meter Size 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 4" $77.46 $85.21 $93.73 $103.10 $113.41 5" $97.60 $107.36 $118.10 $129.91 $142.90 6" $117.74 $129.51 $142.46 $156.71 $172.38 8" $158.03 $173.83 $191.21 $210.33 $231.36 10" $195.22 $214.74 $236.21 $259.83 $285.81 12" $233.95 $257.35 $283.09 $311.40 $342.54 Resolution No. 10-57 Page 4 of 6 WATER DEMAND REDUCTION STAGES: Residential /Commercial 1st 2nd 3rd 4th 5th sth 7th STAGES Tier Tier Tier Tier Tier Tier Tier No Mandatory Reduction 0-10 11-20 21-30 31-40 41-50 51-60 61 + (in units) STAGE 1 -Water Watch Voluntary Compliance 0-9 10-18 19-27 28-36 37-45 46-54 55+ 10-20% Reduction STAGE 2 -Water Alert Mandatory Compliance 0-8 9-16 17-24 25-32 33-40 41-48 49+ 20-30% Reduction STAGE 3 -Water Warning Mandatory Compliance 0-7 8-14 15-21 22-28 29-35 36-42 43+ 30-40% Reduction STAGE 4 -Water Emergency Mandatory Compliance 0-6 7-12 13-18 19-24 25-30 31-36 37+ 40%+ Reduction Multiple Unit 1st 2nd 3rd 4th 5th sth 7th STAGES Tier Tier Tier Tier Tier Tier Tier No Mandatory Reduction 0-8 9-16 17-24 25-32 33-40 41-48 49 + (in units) STAGE 1 -Water Watch Voluntary Compliance 0-7 8-14 15-21 22-28 29-35 36-42 43 + 10-20% Reduction STAGE 2 -Water Alert Mandatory Compliance 0-6 7-12 13-18 19-24 25-30 31-36 37 + 20-30% Reduction STAGE 3 -Water Warning Mandatory Compliance 0-5 6-10 11-15 16-20 21-25 25-30 31 + 30-40% Reduction Resolution No. 10-57 Page 5 of 6 STAGE 4 -Water Emergency 0-4 5-8 9-12 13-16 17-20 21-24 25+ Mandatory Compliance 40%+ Reduction PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the 15th day of June, 201 ~ ATTEST: -cS` PAMELA STOKER, %ity Glerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 10-57 was duly assessed and adopted at a regular meeting of the Tustin City Council, held on the 15tH day of June, 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Amante Nielsen Davert (3) Palmer (1) None (0) Gavello (1) PAPe~ELA STOKER City Ci~rk Resolution No. 10-57 Page 6 of 6