Agenda Report
Fullerton City Council
MEETING DATE: october 3, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, public works director
PREPARED BY: RICHARD ARMENDARIZ, WATER SYSTEMS MANAGER Julio ortega, utility services supervisor
SUBJECT: WATER RATES, RULES AND REGULATIONS – RULE 9 AND RULE 10 AMENDMENTS AND ONE-TIME INCREASE TO UTILITY DISPUTE FUNDS
SUMMARY
City Council consideration of Water Rates Rules and Regulations amendments to clarify application of inaccessible meter charge and prorate the fixed meter charge and amend authorized Infrastructure and Natural Resources Advisory Committee (INRAC) limit to address disputed water, sewer and sanitation utility bills.
RECOMMENDATION
Adopt Resolution 2023-XXX.
RESOLUTION NO. 2023-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, UPDATING THE CITY POLICIES FOR WATER SERVICE PROVISION AND AUTHORIZING A FUNDING INCREASE AVAILABLE TO INFRASTRUCTURE AND NATURAL RESOURCES ADVISORY COMMITTEE FOR EQUITABLE PENALTY WAIVER AND/OR FEE REDUCTION TO ADDRESS DISPUTED WATER, SEWER AND SANITATION UTILITY CHARGES
CITY MANAGER REMARKS
The City Manager recommends approval. The increase from $10,000 to $20,000 for INRAC provides the Commission more flexibility in addressing customer appeals. I believe this is an appropriate change for the City Council to approve.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
Rule 9 Amendments
No fiscal impact as City Council previously approved the Schedule Fees and Charges.
Rule 10 Amendment and One Time Increase in Authority
One-time increase to INRAC annual authorized utility dispute limit from $10,000 to $20,000 in Fiscal Year 2023-24. The Water Fund has funding available from collected utility related penalty fees.
DISCUSSION
Rule 9 Amendments
The proposed amendments provide additional information and updated language to more accurately reflect the adopted Schedule of Fees and Charges. Updates enable the utility to assess an inaccessible meter charge and waive one inaccessible meter charge in a 12-month period. Additional amendments allow for daily proration for the fixed meter charge.
Rule 10 Amendment and One-Time Increase in Authority
City Council adopted Resolution No. 2021-063 in August 2021 establishing a dedicated funding source of non-water rate revenue for INRAC use to address disputed bills. The resolution set a maximum $10,000 per year for this purpose with funds available from collected penalty fees. INRAC has requested a one-time increase to the authorized limit to resolve disputed utility bills.
Staff recommends a one-time increase of the INRAC authorized utility dispute limit to $20,000, with resident and business operations normalizing after the COVID pandemic and City water, sewer and sanitation utilities resuming normal operational procedures. This increase would enable INRAC to address resident bill disputes in a timely manner. Staff proposes an amendment to Water Regulations Rule 10 to allow City Council to periodically adjust INRAC authority and utility dispute funding by resolution without further policy amendment.
Attachments:
Attachment 1 – Resolution No. 2023-XXX
Attachment 2 – Amended Water Rates, Rules, and Regulations Rule 9 Redlined Attachment 3 – Amended Water Rates, Rules, and Regulations Rule 9 Clean Attachment 4 – Amended Water Rates, Rules, and Regulations Rule 10 Redlined Attachment 5 – Amended Water Rates, Rules, and Regulations Rule 10 Clean cc: City Manager Eric J. Levitt
Water Rate Rules 9 and 10 Amendments
October 3, 2023 - Page 2