HomeMy WebLinkAboutCC RES 20-04RESOLUTION NO. 20-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, ADJUSTING WATER RATES PROVIDED BY THE CITY OF
TUSTI N
WHEREAS, the City previously retained Raftelis Financial Consultants,
independent financial consultants, to review the City's Water Enterprise 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 (COS); and
WHEREAS, based on the results of the COS, increases to the rates for water
service fees and charges are necessary; and
WHEREAS, the proposed water rate structure includes a variable water usage
charge and a fixed service charge, both billed on a bi-monthly 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 service 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 rate structure is for a period of four years and five
months, and is proposed to take effect on February 1, 2020, and to increase each January
1 thereafter commencing on January 1, 2021, through and including January 1, 2024;
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 water system; and
WHEREAS, the fees are equitable to all customer classes; and
WHEREAS, the amount of fees will not exceed the proportional cost of service
attributable to each customer class upon which they are proposed for imposition; 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 water system; 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 ("Notice") by mail of the new or increased fees to the recorded 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
Resolution 20-04
Page 1 of 5
upon which the fees were calculated, the reason for the fees, and the date, time, and
location of a public hearing ("Hearing") on the proposed fees; and
WHEREAS, on December 6, 2019, the City distributed notices as required by
Article XIII D regarding the City Council's consideration of the proposed adjustments to
the water rate fees at the January 21, 2020 public hearing to all owners of record and
customers in accordance with Article XIII D, Section 6(a)(1) of the California Constitution
and Government Code Section 53755; and
WHEREAS, on January 21, 2020, the City Council held a duly noticed public
hearing on the proposed water rate contained in this Resolution, and at that time invited
oral and written comments from the public; and
WHEREAS, upon close of said public hearing, the City did receive 68 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
February 1, 2020, at the rates and subject to increases on the dates set forth in the
schedule in Section 4; and
NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve,
determine and order as follows:
SECTION 1. After considering the material presented in the COS, the City Council
hereby finds as follows:
a) Revenues derived from the fees do not exceed the funds required to
provide the related service;
b) Revenues derived from the fees shall not be used for any purpose other
than for that which the fees or charges are imposed;
c) The amount of the fees imposed upon any parcel or customer 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 water
system.
SECTION 2. After receiving public comment and testimony on the new fee
structure for water services provided, and absent a majority protest to the proposed fee
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increases, the new fee schedule for water fees and charges is hereby approved as set
forth in Section 4.
SECTION 3. The new fee schedule for water services shall be implemented
beginning February 1, 2020, and shall be increased on January 1, 2021 and annually
thereafter, up to the maximum rates set forth in Section 4. The scheduled adjustment
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 4. The variable water usage charge and fixed service charge are hereby
established as follows:
FY 2020 FY 2021 FY 2022
Effective 2/1/2020 1/1/2021 1/1/2022
Bi -Monthly Potable Water Usage Charges ($/unit) ***1 unit
748gallons***
FY 2023 FY 2024
1/11/2023 1/1/2024
= 100 cubic feet (hcf) _
Unit: 0 +
$2.79
$2.93
$3.08
$3.24
$3.41
Bi -Monthly Fixed Service Char
Meter & Capital Refurbishment
Meter Size
es
and Replacement
(R&R) Charge
5/8" or 3/4"
$39.76
$41.75
$43.84
$46.03
$48.33
V
$83.82
$88.01
$92.41
$97.03
$101.88
11/2"
$157.25
$165.11
$173.37
$182.04
$191.14
2"
$245.38
$257.65
$270.53
$284.06
$298.26
3"
$524.43
$550.65
$578.18
$607.09
$637.45
4"
$935.67
$982.45
$1,031.58
$1,083.15
$1,137.31
6"
$2,066.56
$2,169.89
$2,278.38
$2,392.30
$2,511.92
8"
$3,535.26
$3,712.02
$3,897.62
$4,092.51
$4,297.13
10"
$5,591.44
$5,871.01
$6,164.56
$6,472.79
$6,796.43
Per Dwelling
Unit Charge
$10.38
$10.90
$11.44
$12.02
$12.62
Protectionire
Meter Size
4"
$18.70
$19.64
$20.62
$21.65
$22.73
5"
$23.37
$24.54
$25.77
$27.05
$28.41
6"
$28.04
$29.44
$30.91
$32.46
$34.08
8"
$37.39
$39.26
$41.22
$43.28
$45.45
10"
$46.74
$49.08
$51.53
$54.11
$56.81
12"
$56.08
$58.88
$61.83
$64.92
$68.17
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin,
California, held on the 21 st day of January, 2020.
ATTEST:
PAA-tA6 AJ6 �"4'— -
ERICA N. YA UDA,
City Clerk
DR. ALLAN BERNSTEIN,
Mayor
Resolution 20-04
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Erica N. Yasuda, 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. 20-04 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 21 st day
of January, 2020, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASVJDA,
City Clerk
Resolution 20-04
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Bernstein, Puckett, Cooper, Lumbard (4)
(0)
Clark