EXHIBIT
D
TO
ATTACHMENT
1 Page
1 of
2 CEQA
Findings
(a)
CEQA does not apply to the establishment, modification, structuring, restructuring,
or
approval
of
rates,
tolls,
fares,
or
other
charges
by
public
agencies
which the public agency finds are for the purpose of:
(a)(1)
Meeting
operating
expenses,
and
investing
in
capital
projects
to
maintain
the
reliability of existing infrastructure
,
City of Napa Water Division operates a system that involves watershed protection, collection,
purchase,
treatment,
and
delivery
of
potable
water.
Operation
of
the
system,
regardless
of
the
quantity
of
water
collected,
treated,
and
delivered
carries
certain
fixed
and variable costs associated with the system’s overall operation.
Over the past
three
years, the Water Division has encountered major operating expense increases for
consumables
namely chemicals
, pipe repair clamps
,
and water supply
that
have
increased greater than
anticipated in the
last rate study performed in 2017
,
while
the
need
to
invest
in
capital
projects
increased
from $
6 M
per
year
to
at least
$
8 M
per
year
to
more
effectively
maintain
the
existing
assets.
Division
staff
advised the Council
that to meet its needs for capital investment, a rate increase is necessary.
The
rate
increase
will
be
used
to
maintain operations and
invest
in
capital
projects
to
protect
the
integrity
of
the existing system
.
(a)(2)
Purchasing
or
leasing
supplies,
equipment,
or
materials,
Operating
the
water
collection,
treatment,
and
delivery
system
involves
the
purchase,
lease, and rental of supplies, equipment, and materials.
The
rate
increase
will
be
utilized
in
part
to
fund
the
higher
costs
of
purchasing
or
leasing
supplies, equipment, and materials.
(a)(3)
Meeting
financial
reserve
needs
and
debt
service
requirements,
The
Water Revenue Bonds were refinanced in 2016 and consolidated outstanding debt service on large capital improvements including the Barwick Jamieson Canyon Water Treatment
Plant
Improvements,
Imola
Tank,
Alston
Tank and
the
solar
array
that
offsets
raw water pumping to the Lake Hennessey Treatment Plant.
The
rate
increase
will
be
utilized
in
part
to
meet
bond
debt
service
coverage
ratio
requirements
and to fund a future capital improvement bond to improve the Lake Hennessey Treatment Plant, the 36
-
inch transmission main, and as funds permit
,
improvements recommended in the
pending
30 -
Year Water System Master Plan
and Corresponding Financial Plan.
(a)(4)
Obtaining
funds
for
capital
projects,
necessary
to
maintain
service
within
existing
service areas.
The rate increase includes funds to maintain and replace the City
Water Division’s
infrastructure
as
necessary
to
ensure
the
continued
delivery
of
reliable,
high
-
quality
water.
R2023-__
EXHIBIT D TO ATTACHMENT 1
(a)(5) Obtaining funds necessary to maintain such intra-city transfers as are authorized by city charter.
The intra-city transfers from the Water Enterprise Fund to the City general fund are calculated by the cost allocation plan and transfers are made to compensate only for services received or direct impact mitigation fees.
(b) Rate increases to fund capital projects for the expansion of a system remain subject to CEQA. The agency granting the rate increase shall act either as the Lead Agency if no other agency has prepared environmental documents for the capital project or as a Responsible Agency if another agency has already complied with CEQA as the Lead Agency.
The City’s rate increase will fund the on-going operation and maintenance of the water collection, treatment, and delivery systems to serve water demand. Maintenance of the overall water system includes the repair and replacement of facilities to safeguard existing water supplies, infrastructure, and programs to ensure a reliable water supply into the future. At such time as facilities are scheduled for repair or replacement, a review of the specific activity will be conducted in accordance with the CEQA Guidelines to assess the potential for impacts associated with the specific activity.
(c) The unusual circumstances exception to the exemption is inapplicable.
There is no indication of unusual circumstances that would create a reasonable possibility that approving the water rates would cause a significant effect on the environment.