Agenda packet — Orange City Council, March 14, 2023 (part 2 of 2)

7. ATTACHMENTS
· NPPP Policy, August 2022
· Resolution No. 11439
· Area Map for Permit Area “Z”
· February 8, 2023, CTC Staff Report
· February 8, 2023, CTC minutes
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NEIGHBORHOOD PARKING PERMIT PROGRAM

IMPLEMENTATION POLICY

APPROVED BY CITY COUNCIL
August 9, 2022
1 Note: The Neighborhood Parking Permit Policy below does not apply to area “A”

• The program to mitigate the int rusion of college -oriented, commercial, institutional, multi - family residential (more than two units) or other long -term vehicular parking on streets in residential areas to assure that local residents and their guests have convenient parking on streets in proximity to their homes shall be referred to as the Neighborhood Parking Permit Program.

• Permit Parking shall only be permitted in single-family residential areas, where the problem is ongoing, and it is determined that the permit parking is the only solution. Only single- family residences and duplexes (two units on one lot) are qualified for this program.

• The Traffic Engineering Division shall determine the boundaries of the permit area for each request.

• Since Permit Parking Areas benefit certain residents, and not the general public, a “Permit Parking Program Application Fee” $1,000 shall be paid by the proponent(s) of each new or additional permit area, for consideration of the implementation of permit parking. (This could also be implemented with a $500 deposit and an additional $500 when the petition is issued.) (Exception: If within one year of implementing a new permit parking area there is spillover onto adjacent streets(s), a property owner o n the affected street(s) may request expansion of that permit parking area. Such requests shall be exempt from the application fee but would need to meet the parking study and petition requirements.)

• The neighborhood parking permit areas that are adjacent to a K-12 school shall not be enforced during the school A.M. drop-off (from 7:30 am to 8:30 am) and P.M. pick-up time (from 1:30 pm to 3:00 pm) on days school is in session.

• Implement restricted hours for permit parking enforcement on an as-needed basis to address Recreational Intrusions and Business Intrusions. The intent of this policy change is to maximize the benefits of permit parking to t he applicant neighborhood while minimizing impacts to adjacent property use to balance parking need with quality of lifestyle.

o Institutional Intrusions (Universities, hospitals) shall remain 24/7/365.

o Recreational Intrusions (Parks, Schools and Sports Complexes) shall be enforced from 8:00 a.m. to 8:00 p.m. or as otherwise approved.

o Business Intrusions (Commercial Businesses) shall be enforced Monday through Friday 7:00 a.m. to 5:00 p.m. or as otherwise approved.

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NEIGHBORHOOD PARKING PERMIT PROGRAM

IMPLEMENTATION POLICY

APPROVED BY CITY COUNCIL
August 9, 2022
2 • Implementation of Permit Parking Program areas will only be considered when the following are satisfied:

1. The area must abut an institutional, residential apartment, commercial or industrial use which is generating the parking intrusion.

2. A minimum of 75% of the area residents must sign the petition in favor.

3. Any identified problem must be on-going, not occasional or temporary.

4. To demonstrate a need, 75% of the available on-street space in a proposed permit area must be occupied during the perceived problem times. Staff, through consultation with the applicant, shall determine appropriate dates and times for conducting the parking occupancy study. Up to three observations may be performed, at the discretion of the Traffic Engineering Division

5. Staff must see evidence that required off street parking is being utilized. • Program shall not be approved to attempt to solve social problems that should be addressed through other means, such as Police or Code Enforcement.

• Program shall not be approved if the identified parking problems can be mitigated by less restrictive parking control measures. Council directs staff to identify the least restrictive permit hours to achieve the desired results.

• If recommended for approval by the City Traffic Commission, the Commission will direct the Traffic Engineering Division to prepare a resolution for adoption by the City Council.

• Number of permits per household (single family residence) shall be limited to 5 permits including guest permits. The total numb er of permits shall not exceed 5 per household. (Updated 6/12/18 per City Council)

• Number of permits for each unit of a duplex shall be limited to 2 permits (for registered vehicles only), plus 2 guest permits. The total of permits shall not exceed 4 permits per unit.

• Permits cost $30 per household and are valid for 3 years. Permits are non-transferable and are invalid if the registered permittee moves from the household. (Updated 6/12/18 per City Council)

• Single day event guest permit (up to maximum of 20) are available 4 times per year at no cost to a resident.

319

NEIGHBORHOOD PARKING PERMIT PROGRAM

IMPLEMENTATION POLICY

APPROVED BY CITY COUNCIL
August 9, 2022
3 • To minimize sign pollution, permit parking area shall be identified by area posting wherever possible.

• The City Council may, at its discretion, create city -defined permit parking “opportunity” areas in locations with high parking demand potential . Residents within the boundaries of such areas can opt into permit parking on a block -by-block basis, similar to Area “A”.

Requests in these areas shall be processed in a streamlined manner similar to Area “A ” requests, with no application fee, no parking study, and minimum 55% support of the affected residents.

The City Manager/or his designee shall have the authority to suspend enforcement of neighborhood parking permit enforcement on a case-by-case basis for special requests.

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RESOLUTION NO. 11439

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE RESCINDING RESOLU TION
NO. 11 422 AND ADOPTING A REVISED MASTER

RESOLUTION OF PERMIT PARKING AREAS
WITHIN THE CITY OF ORANGE.

WHEREAS, Chapter 10.30 of the Orange Municipal Code authorizes the City Council of the City of Orange to add or remove designated areas to the Neighborhood Permit Parking Program by resolution; and

WHEREAS, the rescission of Resolution No. 11422 is necessary to add Parking Permit Area “Z” to the Master Resolution of Permit Parking Areas within the City of Orange; and

WHEREAS, the creation of a master resolution which contains all the permit parking areas will compile all areas into a single document and eliminate the need to revise the Orange Municipal Code every time an area is added or deleted from the Neighborhood Permit Parking Program.

NOW, THEREFORE, BE IT RESOLVED , by the City Council of the City of Orange does resolve as follows:

SECTION I:

That Resolution No. 11422, adopted November 15, 2022, is hereby rescinded, effective immediately.

SECTION II:

That the following streets be included in new permit parking program Area “Z”:

Both sides of Sycamore Avenue from Rancho Santiago Boulevard to Richard Street

SECTION III:

That the Master Resolution of Permit Parking Areas for the Neighborhood Permit Parking program attached hereto as Exhibit “A” is hereby adopted.

ADOPTED this ____ day of ____________________, 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange
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2 STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

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Exhibit A

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EXHIBIT A

The following areas are all areas that have been approved by the City Council for inclusion in the Neighborhood Permit Parking Program and are subject to Chapter 10.30 of the Orange Municipal Code. Any additions or deletions to the Neighborhood Permit Parking Program s hall be made by amending this Master Resolution.

CHAPMAN UNIVERSITY NEIGHBORHOOD PERMIT PARKING AREA “A”

1. West side of Cambridge St. from Chapman Ave. to Lomita Ave. adjacent to residential land uses.

2. Both sides of Center St. from Chapman Ave. to Palm Ave. adjacent to residential land uses.

3. East side of Center St. from Palm Ave. to Walnut Ave.

4. Both sides of Cleveland St. from Chapman Ave. to Sycamore Ave. adjacent to residential land uses.

5. East side of Cypress St. from Palm Ave. to 637 feet north of Walnut Ave.

6. Both sides of Cypress St. from Walnut Ave. to Sycamore Ave.

7. Both sides of Everett Pl. from Shaffer St. to Glassell St.

8. Both sides of Glassell St. from Walnut Ave. to Rose Ave.

9. Both sides of Glassell St. from Lomita Ave. to Walnut Ave.

10. East side of Grand St. from Chapman Ave. to Maple Ave. adjacent to residential land uses.

11. Both sides of Grand St. from Maple Ave. to Palm Ave.

12. Both sides of Grand St. from Everett Pl. to Walnut Ave.

13. Both sides of Grand St. from Everett Pl. to Lomita Ave.

14. Both sides of Harwood St. from 146 feet north of Chapman Ave. to the northern terminus of Harwood St.

15. Both sides of Jefferson Ave. from Harwood St. to Shaffer St.

16. East side of Lemon St. from Chapman Ave. to Palm Ave. adjacent to residential land uses.

17. Both sides of Lemon St. from Palm Ave. to Walnut Ave. adjacent to residential land uses.

18. West side of Lemon St. from Walnut Ave. to 644 feet north of Walnut Ave.

19. Both sides of Lomita Ave. from Cambridge St. to Lemon St. adjacent to residential land uses.

20. Both sides of Maple Ave. from Cambridge to Cypress St. adjacent to residential land uses.

21. Both sides of Mayfair Ave. from Shaffer St. to Lemon St.

22. Both sides of Olive St. from Chapman Ave. to the northern terminus of Olive St. adjacent to residential land uses.

23. Both sides of Olive St. from Sycamore Ave. to Rose Ave.

24. Both sides of Orange St. from Maple Ave. and Palm Ave.

25. Both sides of Orange St. from Walnut Ave. to the northern terminus of Orange St.

26. Both sides of Orange St. from Lomita Ave. to the southern terminus of Orange St.

27. Both sides of Palm Ave. from Cambridge St. to Lemon St. adjacent to residential land uses.

28. Both sides of Rose Ave. from Glassell St. to Orange St.

29. Both sides of Shaffer St. from Chapman Ave. to Lomita Ave. adjacent to residential land uses.

30. Both sides of Sycamore Ave. from Cambridge St. to Center St. adjacent to residential land uses.

31. North side of Sycamore Ave. at 145 W. Sycamore Ave. adjacent to residential land uses.

32. Both sides of Walnut Ave. from Cambridge St. to Cypress St. adjacent to residential land uses. 323

Exhibit A

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33. Both sides of N. Shaffer St. between Chapman Ave. and Walnut Ave.

34. Both sides of E. Maple Ave. between Shaffer St. and Cleveland Ave.

35. Both sides of E. Mayfair Ave. between Shaffer St. and Grand St.

AREA “B”

1. Both sides of Adams Ave. from Glassell St. to Grand St.

2. Both sides of Hoover Ave. from Glassell St. to Grand St.

3. Both sides of Quincy Ave. from Glassell St. to Grand St.

4. Both sides of Wilson Ave. from Glassell St. to Grand St.

AREA “C”

1. Both sides of Compton Ave. from Manchester Ave. to Lewis St.

2. East side of Lewis St. from the northerly property line at 4035 Compton Ave. to the southern property line of 119 N. Lewis St.

3. West side of Manchester Ave. from Sheringham Ave. to Compton Ave.

4. North side of Sheringham Ave. from Manchester Ave. to Windgap Dr.

5. South sides of Sheringham Ave. from Woodridge Cr. to Windgap Dr.

6. Both sides of Sunningdale Cr. from Compton Ave. south to include the cul-de-sac.

7. Both sides of Windgap Dr. from Compton Ave. south to include the cul-de-sac.

8. West side of Woodridge Cr. from Sheringham Ave. south to include the cul-de-sac.

9. East side of Woodridge Cr. from the northerly property line of 119 N. Woodridge Cr. south to include the cul-de-sac.

AREA “D”

1. Both sides of Dunas St. from Maple Ave. north to include the cul-de-sac.

2. Both sides of Maple Ave. from Prospect St. to Olympia Way.

3. Both sides of Olympia Way from Maple Ave. to Spring St.

4. Both sides of Shasta St. from Maple Ave. north to include the cul-de-sac.

5. Both sides of Vine Ave. from Olympia Way to its western terminus.

6. Both sides of First St. from Chapman Ave. north to include the cul-de-sac.

7. Both sides of Pearl Ave. from First St. to McPherson Rd.

8. East side of McPherson Rd. from 131 to 133 N. McPherson Rd.

AREA “E”

1. West side of Elm St. south of Sycamore Ave. to include the cul-de-sac.

AREA “F”
Permit Parking between the hours of 10:00 p.m. and 6:00 a.m.

1. Both sides of Almond Ave. from Prospect St. to Violet Ln.

2. Both sides of Kathleen St. from Chapman Ave. to Palmyra Ave.

3. Both sides of Palmyra Ave. from Craig Dr. to Prospect St.

4. East side of Prospect St. from Almond Ave. to Palmyra Ave.

5. Both sides of Violet Ln. from Almond Ave. to Palmyra Ave. 324

Exhibit A

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AREA “G”
Permit Parking between the hours of 10:00 p.m. and 6:00 a.m.

1. Both sides of Euclid Ave. from James St. to Seranado St.

2. Both sides of James St. from Sycamore Ave. to Euclid Ave.

3. Both sides of Palm Ave. from Swidler St. to Seranado St.

4. Both sides of Sycamore Ave. from Swidler St. to Seranado St.

5. Both sides of Seranado St. from Spring St. to Walnut Ave.

6. Both sides of Silverleaf Ave. from Thomas St. to Seranado St.

7. Both sides of Spring St. from Swidler St. to Seranado St.

8. Both sides of Swidler St. from Spring St. to Walnut Ave.

9. Both sides of Thomas St. from Sycamore Ave. to Silverleaf Ave.

10. Both sides of Walnut Ave. from Swidler St. to Seranado St.

AREA “H”

1. Both sides of Shaffer St. beginning 390 feet north of Katella Ave. and ending at Trenton Ave. (R-1 zoned single-family residences only.)

AREA “I”

1. Both sides of Almond Ave. from Prospect St. to Dunas St.

2. Both sides of Century Ave. from James St. to Thomas St.

3. Both sides of Craig Dr. 100 feet south of Roberta Dr. to Prospect St.

4. Both sides of Dunas St. from Palmyra Ave. to Almond Ave.

5. Both sides of James St. from Century Dr. to LaVeta Ave.

6. North side of LaVeta Ave. from Prospect St. to Dunas St.

7. Both sides of Merelet Ln. from Craig Dr. to include the cul-de-sac.

8. Both sides of Olympia Way from Palmyra Ave. to Almond Ave.

9. North side of Palmyra Ave. from Prospect St. to Thomas St.

10. Both sides of Ruth Pl. easterly of James St.

11. Both sides of Ruth Pl. from Prospect St. to Olympia Way.

12. Both sides of Shasta St. from Palmyra Ave. to Almond Ave.

13. Both sides of Thomas St. from Century Dr. to Palmyra Ave.

AREA “J”

1. Both sides of Binnacle Ave. from Jetty Dr. to its easterly terminus.

2. North side of Chapman Ave. from Jetty Dr. to 4537 W. Chapman Ave.

3. North side of Chapman Ave. frontage road from Jetty Dr. to cul-de-sac.

4. Both sides of Grant Pl. from Chapman Ave. northerly to include the cul-de-sac.

5. Both sides of Jetty Dr. from Chapman Ave. to Sirius Ave.

6. West side of Lewis St. from Sirius Ave. to Simmons Ave.

7. South side of Simmons Ave. from Lewis St. to Spinnaker St.

8. Both sides of Sirius Ave. from Lewis St. to Jetty Dr.

9. Both sides of Spinnaker St. from Binnacle Ave. to Simmons Ave.

10. Both sides of Stay Court easterly of Jetty Dr.
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Exhibit A

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11. Both sides of Tiller Ave. from Lewis St. to Spinnaker St.

AREA “K”

1. Both sides of the 2700 block of E. Bennett Ave.

2. Both sides of the 2700 block of E. Killingsworth Ave.

3. Both sides of the 100-200 blocks of N. Malena Dr.

4. Both sides of the 2700 block of E. Sherman Ave.

5. Both sides of the 100-200 blocks of N. Wheeler St.

AREA “L”

1. Both sides of Jacaranda Ave. from Morgan St. to Mallard St.

2. Both sides of Juniper Ave. from Morgan St. to Mallard St.

3. Both sides of Mallard St. from Collins Ave. northerly to 985 N. Mallard St.

4. Both sides of Morgan St. from Collins Ave. northerly to 986 N. Morgan St.

AREA “M”

1. Both sides of Citrus St. from Almond Ave. to the southerly commercial property lines south of Chapman Ave.

AREA “N”

1. West side of Bedford Rd. from LaVeta Ave. to Bronson Ave.

AREA “O”

1. North side of Spring St. from Hewes St. to Earlham St.

AREA “P”

1. Both sides of the 1000 block of Gardner Dr.

2. Both sides of the 1000 block of Greengrove St.

3. Both sides of Monroe Ave. from California St. to Lincoln St.

4. Both sides of Quincy Ave. from California St. to Lincoln St.

5. Both sides of Lincoln St. between Adams Ave. and Wilson Ave. including the cul-de-sac.

6. West side of Lincoln St. from 990 N. Lincoln St. to Adams Ave.

7. East side of Lincoln St. from 1073 N. Lincoln St. to Adams Ave.

8. Both sides of Adams Ave. between Lincoln St. and California St.

AREA “Q”

1. Both sides of the 8500 block of Biscayne Way.

2. Both sides of the 8500 block of Deershire Ct.

3. Both sides of the 200 block of Fairfield Ln.

4. Both sides of the 200 block of Firenza Way.

5. Both sides of the 8500 block of Heatherview Ln.

326

Exhibit A

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AREA “R”

1. Both sides of San Luis Dr. from 7821 (north side) to Santa Cruz Ave., and from 7816 (south side) to the beginning of 8132.

2. 8102 and 8110 Santa Cruz Ave. (south side).

3. Both sides of Santa Maria St. between San Luis Dr. and Santa Cruz Ave.

AREA “S”

1. Both sides of Poplar St. between Maple Ave. and the cul-de-sac.

2. North side of Maple Ave. between Stevens St. and 1949 W. Maple Ave.

3. South side of Maple Ave. from Stevens St. to 2010 W. Maple Ave.

4. Both sides of Eckhoff St. between 130-283 N. Eckhoff St.

AREA “T”

1. Both sides of Cully Dr. from the westerly property lines of 861 and 864 W. Cully Dr. to the cul-de-sac.

2. Four spaces on the east side of Eckhoff St. from the southerly limit to W. Arbor Way (approximately 110 feet).

3. Five spaces on the east side of Eckhoff St. from 45 feet north of W. Arbor Way end of curb return to Maple Ave. (approximately 140 fe et. It allows one parking space to remain in the permit parking program just north of the driveway at 2037 W. Arbor Way for visibility).

4. Three spaces on the east side of Eckhoff St. north of Willow Ave. to the northerly limit (approximately 70 feet).

5. Two spaces on the east side of Eckhoff St. from the existing red curb north of Maple Ave. to the driveway south of 206 N. Eckhoff St.

AREA “U”

1. Both sides of Waverly St. from the northerly property lines of 133 and 138 S. Waverly St. to Almond Ave.

AREA “V”

1. The south side of E. Rose Ave. from 1932/1934 to N. Highland St.

2. Both sides of N. Highland St. from E. Rose Ave. to E. Barkley Ave.

3. Both sides of E. Mayfair Ave. from 1740 E. Mayfair Ave. to N. Highland St.

4. The south side of E. Lomita Ave. from 1734/1736 to N. Highland St.

5. The north side of E. Lomita Ave. from 1901 to N. Highland St.

6. Both sides of E. Barkley Ave. from the cul-de-sac to N. Highland St.

7. Both sides of the cul-de-sacs of N. Victoria Dr., N. Russell Dr., and N. Shirley Dr., north of E.

Mayfair Ave.

AREA “W”

1. Both sides of Madison Ave. from Wayfield St. to the cul-de-sac.

2. Both sides of Orange Grove Ave. from Wayfield St. to the westerly property lines of 1743/1744 E. Orange Grove Ave.
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Exhibit A

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3. East side Wayfield St. between Orange Grove Ave. and the southerly property lines of 550/555 Wayfield St.

4. West side of Wayfield St. between Orange Grove Ave. and Madison Ave.

AREA “X”

1. South side of Collins Ave. from Hart St. to 2842 E. Collins Ave.

AREA “Y”

1. Both sides N. Citrus St. from Walnut Ave. to W. Sycamore Ave.

AREA “Z”

1. Both sides of Sycamore Ave. from Rancho Santiago Blvd. to Richard St.

OPPORTUNITY AREA “1”

1. Both sides of Lilac Ln. from Culver Ave. to Orchard Ave.

2. Both sides of Plum Ln. from Culver Ave. to Orchard Ave.

3. Both sides of Orchard Ave. from Flower St. to the easterly terminus of the street.

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329
Agenda Item
City Traffic Commission
Item #: 4.1. 2/8/2023 File #: 23-0060
TO: Chair and Members of the City Traffic Commission
THRU: Larry Tay, City Traffic Engineer
FROM: Dave Allenbach, Transportation Analyst

1. SUBJECT
Implementation of Neighborhood Parking Permit Program on both sides of Sycamore Avenue from Rancho Santiago Boulevard to Richard Street.

2. SUMMARY
A request for permit parking on Sycamore Avenue and four other nearby streets was processed in accordance with the City’sNeighborhood Permit Parking Program. Of the five streets considered, only Sycamore Avenue met the minimum required 75 percent support. Sycamore Avenue satisfied all other applicable requirements and implementation criteria.

3. RECOMMENDED ACTION

1. Approve permit parking on both sides of Sycamore Avenue from Rancho Santiago Boulevard to Richard Street.

2. Forward to the City Council for final approval.

4. FISCAL IMPACT
The total expenditure for the project is $1,000 and will be funded in Minor Traffic Control Devices (16302) through Traffic Improvement Measure M2 (263).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
Background
A resident of Sycamore Avenue submitted a request to initiate the process for permit parking on a total of five streets in the neighborhood (as depicted in the Area Map attached): Sycamore Avenue, Christine Street, Silverleaf Avenue, Richard Street and Rancho Santiago Boulevard. In accordance with the City’s Neighborhood Permit Parking Program (NPPP) process, staff performed an initial screening of the proposed study area to determine the following:

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Item #: 4.1. 2/8/2023 File #: 23-0060

1. Whether a street is eligible to be considered for permit parking; and

2. If so, does said street lie within a city-defined permit parking area (Area “A”or any of the five permit parking “opportunity areas”) with streamlined procedures.

Because each of the above streets is eligible for permit parking and outside of a city-defined permit parking area, minimum levels of parking occupancy and property owner support must be met in order to recommend permit parking. Both are discussed below.

Parking Occupancy Study
Staff mapped and counted the number of legal parking spaces for each of the five streets in the study area. The proponent provided staff with the days and times when parking demand in the neighborhood was believed to be at its highest. Staff then conducted the parking observations during those reported hours. Per the City’s adopted NPPP, a street parking occupancy rate of 75% is required to qualify for permit parking. Sycamore Avenue was the only street in the neighborhood to exceed the 75% threshold with an average parking occupancy of 86%. Christine Street (28%), Richard Street (58%) Silverleaf Avenue (42%) and Rancho Santiago Boulevard (58%) each failed to meet the 75% threshold.

Petition Results
Because parking occupancy exceeded the minimum 75% threshold only on Sycamore Avenue, a petition was circulated to those residents on both sides of the street (the other streets were not included.) A petition letter and a list of permit parking advantages and disadvantages were provided by the Traffic Division to each of the resident property owners and absentee property owners on the candidate street. The table below shows the results of the neighborhood polling as of January 19,2023.

Affected Streets Households In Favor Households OpposedUnreturned Sycamore Ave. 9 81.8% 0 0% 2 18.2%
The final results of the petition indicate that Sycamore Avenue has 82% of property owners in favor of the permit parking program, which exceeds the minimum 75% required. Participation in the permit program is voluntary; however, after implementation any vehicle parked on the street without a permit can be cited.

Findings
Staff has documented a consistently high demand for on-street parking on Sycamore Avenue that becomes progressively greater through the evening hours. The level of parking demand exceeds the minimum requirements under the policies of the NPPP. Therefore, permit parking is recommended on Sycamore Avenue. However, the following should be kept in mind:

1. Under the August 2022 NPPP Guidelines, property owners on any adjacent street experiencing spillover may request permit parking within a year without having to pay the application fee. Parking occupancy, petition thresholds, and other program requirements in effect at the time would still apply.

2. Any vehicle parked in a designated parking-by-permit area without a permit is subject to citation; furthermore, parking permits do not supersede the overnight parking restriction on City of Orange Printed on 2/2/2023Page 2 of 3
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Item #: 4.1. 2/8/2023 File #: 23-0060
Sycamore Avenue or the street sweeping restrictions in the neighborhood.

The proponent and all residents and businesses within potential impact areas of this neighborhood were notified of this item on Traffic Commission Meeting agenda.

7. ATTACHMENTS
· Letter of Request
· Area Map
· Petition Area
· NPPP Implementation Policy Update 2022
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City of Orange
City Traffic Commission
February 08, 2023

MINUTES - DRAFT

1. OPENING/CALL TO ORDER
Chair Feliz called the meeting to order at 5:38 pm.

1.1 PLEDGE OF ALLEGIANCE
Vice Chair Ricci led the flag salute.

1.2 ROLL CALL

Present: Ricci, Vaughan, Dick, and Feliz

Absent: None

1.3 RECOGNITION OF CITY TRAFFIC COMMISSIONER CHRISTIAN

VAUGHAN

2. PUBLIC COMMENT
None.

3. CONSENT CALENDAR

3.1. Approval of meeting minutes of the Traffic Commission of the City of Orange for the October 12, 2022, Regular Meeting.

ACTION: A motion was made by Commissioner Vaughan, seconded by Commissioner Dick, to approve the Consent Calendar as presented. The motion carried by the following vote:

Ricci, Vaughan, Dick, and FelizAyes:

NoneNoes:

NoneAbsent:

4. CONSIDERATION ITEMS
Vice Chair Ricci recused himself due to a conflict with employment and left the dais at 5:47 p.m.

4.2. Removal of two -hour parking restriction on Waverly Street, in front of 942 E.

Chapman Avenue.

A motion was made by Chair Feliz, seconded by Commissioner Vaughan, to continue the item to a date uncertain. The motion carried by the following vote:

Vaughan, Dick, and FelizAyes:

NoneNoes:

NoneAbsent:

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City Traffic Commission Minutes - Draft February 8, 2023 RicciRecused:

Vice Chair Ricci returned to the dais at 5:47 p.m.

Commissioner Vaughan recused himself due to a conflict of interest and left the dias at 5:48 p.m.

4.3. Stop control at the intersection of Culver Avenue and Greengrove Street.

A motion was made by Commissioner Dick, seconded by Vice Chair Ricci, for the installation of a two -way stop control for east and westbound Culver Avenue at its intersection with GreenGrove Street. The motion carried by the following vote:

Ricci, Dick, and FelizAyes:

NoneNoes:

NoneAbsent:

VaughanRecused:

Commissioner Vaughan returned to the dias 5:51 p.m.

4.4. Stop control at the intersection of Everett Place and Maplewood Street.

Public Speakers
The following spoke in support:

Laurie Phillips
Alan Leingang
A motion was made by Vice Chair Ricci, seconded by Commissioner Vaughan, to approve the installation of a two -way stop control for east and westbound Everett Place at Maplewood Street. The motion carried by the following vote:

Ricci, Vaughan, Dick, and FelizAyes:

NoneNoes:

NoneAbsent:
(Item 4.1 was reordered to be heard after Item 4.4.)

4.1. Implementation of Neighborhood Parking Permit Program on both sides of Sycamore Avenue from Rancho Santiago Boulevard to Richard Street.

Public Speakers
The following spoke in support:

Brooke Wilson
Robert Guzman
Chris Chung
The following spoke in support but with conditions:

Dennis Surles
Dennis Brisco
A motion was made by Vice Chair Ricci, seconded by Commissioner Vaughan, to approve the request, and forward to City Council for final approval. The motion carried by the following vote:

Ricci, Vaughan, Dick, and FelizAyes:

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City Traffic Commission Minutes - Draft February 8, 2023 NoneNoes:

NoneAbsent:

5. ADMINISTRATIVE REPORTS
None.

6. ADJOURNMENT
The next Regular City Traffic Commission Meeting will be held on Wednesday, April 12, 2023, at 5:30 p.m., in the Council Chamber.

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335
Agenda Item
City Council
Item #: 7.2. 3/14/2023 File #: 23-0079
TO: Honorable Mayor and Members of the City Council
FROM: Mary E. Binning, City Attorney

1. SUBJECT
Agreement for Employment with City Manager Thomas C. Kisela and adoption of amended citywide pay schedule. Resolution No. 11440.

2. SUMMARY
Pursuant to Resolution No. 11410, or as superseded, the City Council determines the City Manager’s compensation and benefits. The proposed Employment Agreement with City Manager Thomas C.

Kisela provides for a two-year term effective March 26, 2023, through March 26, 2025.

Resolution No. 11440 amends the citywide pay schedule in accordance with the requirements of the California Code of Regulations, Title 2, Section 570.5.

3. RECOMMENDED ACTION

1. Approve Agreement for Employment with City Manager Thomas C. Kisela, and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Adopt Resolution No. 11440. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11435 and amending the citywide pay schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.

4. FISCAL IMPACT
The Agreement for Employment provides for a monthly salary of $24,416.67 plus benefits, as outlined in the Executive/Senior Management Resolution No. 11410, or as it may be superseded.

Funds are budgeted and available as follows: General Fund (100) account will pay 100% of the expenses related to this Agreement.

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
d: Foster an environment of leadership, teamwork, and innovation.

Goal 4: Provide outstanding public service.
e: Attract, retain and develop quality employees dedicated to public service.

6. DISCUSSION AND BACKGROUND
The City hired Mr. Kisela in November 2022 as Interim City Manager. Mr. Kisela offers over 30 years of experience working in public service in the City of Orange, most recently as its Chief of Police, City of Orange Printed on 3/9/2023Page 1 of 2
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Item #: 7.2. 3/14/2023 File #: 23-0079
retiring in July 2021.

After 5 months of working with Mr. Kisela, combined with over 30 years of distinguished City service, the City Council determined he is the preferred candidate for the City Manager position. The City Council is asked to consider the attached Employment Agreement.

Pursuant to Council direction, the City Attorney and Human Resources Director negotiated the recommended employment provisions:
· Monthly base salary of $24,416.67,
· 80 hours of Vacation Leave,
· 80 hours of Administrative Leave,
· 40 hours of Sick Leave,
· 22.5 hours of Floating Holiday Leave,
· Modification to the Sick Leave Payout Program (from 50% to 75% of unused sick leave hours) upon retirement, and
· Use of a City vehicle.

In recognition of Mr. Kisela’s significant public sector experience, the City shall provide vacation accrual to be commensurate with an employee with 30 years of service (264 vacation hours per year).

Applicable rules and regulations for Executive Directors within Resolution No. 11410, and the Orange Municipal Code, or as superseded, govern all other benefits or terms of employment

7. ATTACHMENTS
· Employment Agreement
· Resolution No. 11440
City of Orange Printed on 3/9/2023Page 2 of 2
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Agenda Item
City Council
Item #: 7.2. 3/14/2023 File #: 23-0079
TO: Honorable Mayor and Members of the City Council
FROM: Mary E. Binning, City Attorney

1. SUBJECT
Agreement for Employment with City Manager Thomas C. Kisela and adoption of amended citywide pay schedule. Resolution No. 11440.

Kisela provides for a two-year term effective March 26, 2023, through March 26, 2025.

Resolution No. 11440 amends the citywide pay schedule in accordance with the requirements of the California Code of Regulations, Title 2, Section 570.5.

3. RECOMMENDED ACTION

1. Approve Agreement for Employment with City Manager Thomas C. Kisela, and authorize the Mayor and City Clerk to execute on behalf of the City.

Funds are budgeted and available as follows: General Fund (100) account will pay 100% of the expenses related to this Agreement.

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
d: Foster an environment of leadership, teamwork, and innovation.

Goal 4: Provide outstanding public service.
e: Attract, retain and develop quality employees dedicated to public service.

6. DISCUSSION AND BACKGROUND
The City hired Mr. Kisela in November 2022 as Interim City Manager. Mr. Kisela offers over 30 years of experience working in public service in the City of Orange, most recently as its Chief of Police, City of Orange Printed on 3/9/2023Page 1 of 2
powered by Legistar™
338
Item #: 7.2. 3/14/2023 File #: 23-0079
retiring in July 2021.

Applicable rules and regulations for Executive Directors within Resolution No. 11410, and the Orange Municipal Code, or as superseded, govern all other benefits or terms of employment

7. ATTACHMENTS
· Employment Agreement
· Resolution No. 11440
City of Orange Printed on 3/9/2023Page 2 of 2
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CITY OF ORANGE

AGREEMENT FOR EMPLOYMENT

OF CITY MANAGER

THIS AGREEMENT FOR EMPLOYMENT (“Agreement”) is made and entered into effective March 14, 2023 (“Effective Date”) , by and between the City of Orange, a municipal corporation (“City”) and Thomas C. Kisela, an individual. In consideration of the respective and mutual covenants hereinafter contained and made, and subject to all the terms and conditions hereof, the parties agree as follows:

1. The City Council of the City hereby appoints Thomas C. Kisela as the City Manager of the City (hereafter “City Manager”) for a period commencing on March 26, 2023, and expiring on March 26, 2025, unless otherwise extended or terminated as herein provided.

2. Thomas C. Kisela desires to perform the duties of City Manager for the City and hereby accepts such appointment under the terms and conditions set forth in this Agreement.

3. Compensation
a. Effective upon appointment as City Manager , the salary of City Manager is established at $24,416.67 monthly and shall be paid in the same manner and at the same times as other monthly salaries in the City are paid. During the term of this Agreement, if any across-the-board salary increases are approved for Non-Safety Executive Management listed in Exhibit “A” to Resolution No . 11410 or as such Resolution may be superseded, then City Manager shall be entitled to the same percentage increase.
b. Annual written evaluations of City Manager’s performance by the City Council, if any, shall be shared and discussed with City Manager in closed session or individually per the City Council’s discretion.

4. Benefits
a. In addition to any benefits provided in this Agreement, City Manager shall receive those benefits and be governed by all applicable rules and regulations related to those benefits provided for Executive Management listed in Exhibit “A” to Resolution No. 11410 or as such Resolution may be superseded; provided that it is understood that City Manager shall pay the Miscellaneous 340
2 Member Contribution to CalPERS at the same level and in the same manner as Executive Management, as provided in Resolution No. 11410 or as such Resolution may be superseded. b. City Manager shall receive use of a City vehicle for professional and personal purpose, without mileage restriction. City shall provide, at its own cost, insurance, maintenance and fuel expenses for the vehicle. City Manager shall maintain a current and valid Driver License. c. Upon appointment with City, City Manager shall be provided with (1) 80 hours of vacation leave;
(2) 40 hours of sick leave; and
(3) 80 hours of Administrative Leave without proration; and (4) 22.5 hours of Floating Holiday leave without proration. d. In recognition of City Manager’s significant public sector experience, City Manager shall receive paid vacation accrual to be commensurate with an employee with 30 years of service and accrue at a rate of 264 vacation hours per year, in accordance with Exhibit “A,” Section 19 A. of Resolution No. 11410 or as such Resolution may be superseded.

5. Modification to Sick Leave Payout.
a. With respect to City Manager, Section 21.D. 8(e) of the Top Management Resolution contained in Resolution No. 11410 or as such Resolution may be superseded (Leaves of Absence – Sick Leave – Sick Leave Payout Program), shall be modified as follows:

Upon retirement from employment with the City and entering the CalPERS as a retired annuitant, City Manager shall receive pay for 75% of all unused sick leave hours. The cash value of this unused sick leave payout will be deposited into City Manager’s Retirement Health Savings Plan account, as described in Section 24 .C of Resolution No. 11410 or as such Resolution may be superseded.
b. With respect to City Manager, Section 24.C.3 of the Top Management Resolution contained in Resolution No. 11410 or as such Resolution may be superseded (Retirement – Retirement Health Savings Plan), shall be modified as follows:
341
3 The full cash value of City Manager’s unused sick leave payout upon retirement from City service (i.e., 75% of all unused sick leave) and entering CalPERS as a retired annuitant.

6. Termination
a. Termination. City reserves the right to terminate this Agreement for any reason prior to March 26, 2025, by providing City Manager written notice of its election to terminate, including any statement of cause, and an opportunity for a hearing as set forth in Orange Municipal Code (“OMC”) Section 2.16.070, as it may be amended . Notwithstanding any provision in OMC Section 2. 16.070 to the contrary, a majority of the then-serving City Council is required to approve such termination. Such termination shall be effective as set forth in the notice of election to terminate , but in no event sooner than the time required for notice and any requested hearing. b. Severance. Except as otherwise provided herein, in the event City Manager is terminated prior to March 26, 2025, City is obligated to pay City Manager full salary as set forth in Section 3.a of this Agreement or as it may be later amended, and value of elected health benefits, for three months after the date of termination. The total salary severance amount shall be payable no later than thirty (30) days following the date of termination, or as otherwise agreed by both parties . This severance amount shall only be payable provided that City Manager has executed a release, waiving any rights, claims, or any other actions arising out of termination of this Agreement in a form acceptable to the City Council.
c. Cause. Notwithstanding anything contained herein to the contrary, in the event City Manager is terminated for cause, City Manager shall forfeit any and all severance payments described in Section 6.b of this Agreement. In addition to other grounds, the following shall also be considered grounds for termination for cause:
(1) Performance of outside business interests that conflict directly with the activities and duties as City Manager, but not including educational or professional training programs conducted by City Manager whether for personal financial gain or not; (2) Refusal to take or subscribe any oath or affirmation required by law; 342
4 (3) Conviction of a felony or conviction of a misdemeanor involving moral turpitude (a conviction following a plea of nolo contendre is deemed a conviction).

7. City Manager shall notify the Mayor and City Council in writing of any unexpected absence from Orange County in excess of nine (9) regular business hours. City Manager shall provide a telephone number(s) where he can be reached during such absences. Said notice shall designate an Acting City Manager who shall be authorized to perform the duties and responsibilities of City Manager in his absence.

8. In the event City Manager voluntarily resigns his position with City before expiration of the Term of this Agreement or any extension thereof, he shall give the City Council thirty (30) days’ written notice, unless the parties otherwise agree. In the event of voluntary resignation or expiration of this Agreement, City Manager is not entitled to the severance payment described in Section 6.b of this Agreement.

9. This Agreement may only be amended in writing, signed by both parties.

10. This Ag reement contains the entire agreement of the parties and no promises or representations not included in this Agreement shall have any force or effect . Each party agrees that they have engaged in arms -length bargaining and have been provided the opportunit y to have the Agreement reviewed by an attorney of their choice.

11. Neither party may assign the performance of this Agreement.

12. If any provision or portion hereof is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement shall be deemed severable , shall not be affected and shall remain in full force and effect, and the City Council and City Manager shall be deemed to have intended to enter into this Agreement even absent such provision or portion hereof.

[Remainder of page intentionally left blank; signatures on next page]

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5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective on the date and year first above written.

DATE OF EXECUTION: CITY OF ORANGE, a municipal corporation,

Daniel R. Slater, Mayor

ATTEST:

Pamela Coleman, City Clerk

DATE OF EXECUTION: THOMAS C. KISELA, an individual

APPROVED AS TO FORM:

Mary E. Binning
City Attorney
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RESOLUTION NO. 11440

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE RESCINDING RESOLUTION
NO. 11435 AND AMENDING THE CITYWIDE PAY

SCHEDULE IN ACCORDANCE WITH THE

REQUIREMENTS OF CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 570.5
WHEREAS, the City of Orange (“City”) contracts with the California Public Employees’ Retirement System to provide retirement benefits for its employees; and WHEREAS, per California Code of Regulations, Title 2, Section 570.5 (“Regulation 570.5”), the amount of “compensation earnable” pursuant to the Government Code is limited to the payrate listed on a pay schedule that meets certain requirements; and WHEREAS, the attached Citywide Pay Schedule meets the following requirements of Regulation 570.5: (1) is duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meeting laws; (2) identifies the position title of every employee; (3) shows the pay rate for each position; (4) indicates the time base for each pay rate; (5) is posted at the office of the employer or immediately accessible for public review during normal business hours or posted on the employer’s internet website; (6) indicates an effective date and date of any revisions; (7) is retained by the employer and available for public inspection for a period not less than five years; and (8) does not reference another document in lieu of disclosing the pay rate; and
WHEREAS, on March 14, 2023, the City Council approved the Agreement for Employment for the City Manager. Effective upon the execution of the agreement, the salary of the City Manager classification changed to $24,416.67 per month. This salary adjustment has been incorporated into the attached Salary Schedule effective March 26, 2023 (Appendix A).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that Resolution No. 11435 is hereby rescinded and the attached revised Citywide Pay Schedule contained in Appendix A is approved and incorporated.

ADOPTED this ____ day of ____________________, 2023
Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
345
2 STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
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APPENDIX A
City of Orange
Citywide Pay Schedule - Revision Effective March 26, 2023 Approved by City Council on March 14, 2023
Classification Title Group Effective Salary Type Range Step A Step B Step C Step D Step E Step F Step G Step H Accountant OMEA 1/1/2023 Monthly 562 5,882 6,182 6,498 6,829 7,177 7,543 Accounting Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Administrative Analyst I SM 7/3/2022 Monthly 554 5,652 5,940 6,243 6,562 6,896 7,248 Administrative Analyst II SM 7/3/2022 Monthly 574 6,245 6,563 6,898 7,250 7,620 8,008 Administrative Assistant OMEA 1/1/2023 Monthly 510 4,538 4,770 5,013 5,269 5,538 5,820 Administrative Services Director EM 7/3/2022 Monthly 740 14,291 15,022 15,786 16,592 17,438 18,327 Administrative Specialist OMEA 1/1/2023 Monthly 508 4,493 4,723 4,963 5,217 5,483 5,762 Ambulance Operator PT&LD 7/1/2022 Monthly 412 2,783 2,926 3,075 Assistant City Attorney I SM 7/3/2022 Monthly 680 10,595 11,137 11,703 12,301 12,928 13,587 Assistant City Attorney II SM 7/3/2022 Monthly 690 11,137 11,707 12,302 12,930 13,590 14,282 Assistant City Manager EM 7/3/2022 Monthly 749 14,948 15,712 16,511 17,354 18,239 19,169 Assistant Community Devel. Director SM 7/3/2022 Monthly 688 11,027 11,590 12,180 12,802 13,455 14,140 Assistant Community Services Director SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Assistant Engineer OMEA 1/1/2023 Monthly 591 6,797 7,145 7,508 7,891 8,294 8,717 Assistant Field Services Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Assistant Finance Director SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Assistant Human Resources Director SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Assistant Library Services Director SM 7/3/2022 Monthly 634 8,423 8,854 9,304 9,779 10,278 10,802 Assistant Planner OMEA 1/1/2023 Monthly 549 5,513 5,795 6,089 6,401 6,727 7,070 Assistant Pool Manager PT&LD 12/4/2022 Hourly 482 22.77 23.93 25.15 Assistant Public Works Director SM 7/3/2022 Monthly 700 11,707 12,305 12,931 13,591 14,284 15,013 Assistant Recreation Services Coordinator PT&LD 7/1/2022 Hourly 509 26.05 27.38 28.78 Assistant to the City Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Assistant Water Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Associate Civil Engineer OMEA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Associate Engineer OMEA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Associate Planner OMEA 1/1/2023 Monthly 584 6,564 6,899 7,251 7,621 8,009 8,418 Budget Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Budget Officer SM 7/3/2022 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Building and Safety Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Building Inspection Supervisor OMA 1/1/2023 Monthly 590 6,764 7,109 7,470 7,852 8,253 8,673 Building Inspector OMEA 1/1/2023 Monthly 550 5,541 5,823 6,120 6,432 6,760 7,105 Business License Inspector OMEA 1/1/2023 Monthly 538 5,219 5,485 5,765 6,059 6,368 6,692 Buyer OMEA 1/1/2023 Monthly 546 5,431 5,708 5,999 6,305 6,627 6,965 Chemical Sprayer OMCEA 1/1/2023 Monthly 492 4,149 4,360 4,582 4,817 5,062 5,320 Chief Building Official SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 City Attorney EM 1/15/2023 Monthly N/A 22,750
City Clerk Services Director EM 7/3/2022 Monthly 644 8,854 9,307 9,780 10,279 10,804 11,354 City Council/ Mayor - Elected N/A 12/15/2022 Monthly N/A 600 City Manager EM 3/26/2023 Monthly N/A 24,416.67
Civilian Investigative Officer COPA 6/19/2022 Monthly 527P 4,940 5,192 5,457 5,735 6,028 6,335 6,588 Code Compliance Officer OMEA 1/1/2023 Monthly 544 5,377 5,651 5,940 6,243 6,561 6,896 Code Compliance Supervisor OMA 1/1/2023 Monthly 590 6,764 7,109 7,470 7,852 8,253 8,673 Combination Building Inspector OMEA 1/1/2023 Monthly 560 5,824 6,121 6,433 6,761 7,106 7,468 Community Development Director EM 7/3/2022 Monthly 730 13,596 14,291 15,018 15,785 16,590 17,436 Community Services Director EM 7/3/2022 Monthly 725 13,261 13,939 14,648 15,396 16,181 17,006 Construction Inspection Supervisor OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Construction Inspector I OMEA 1/1/2023 Monthly 531 5,040 5,297 5,567 5,851 6,149 6,463 Construction Inspector II OMEA 1/1/2023 Monthly 551 5,569 5,852 6,151 6,464 6,794 7,141 Contract Administrator OMEA 1/1/2023 Monthly 591 6,797 7,145 7,508 7,891 8,294 8,717 Court Liaison Officer COPA 6/19/2022 Monthly 517P 4,700 4,939 5,191 5,456 5,734 6,027 6,268 Crime Analyst SM 7/3/2022 Monthly 572 6,183 6,498 6,830 7,178 7,544 7,929 Crime Prevention Specialist COPA 6/19/2022 Monthly 535P 5,141 5,403 5,679 5,969 6,273 6,593 6,856 Custodian OMCEA 1/1/2023 Monthly 450 3,364 3,536 3,717 3,906 4,106 4,315 Deputy City Clerk SM 7/3/2022 Monthly 576 6,308 6,629 6,968 7,323 7,696 8,089 Deputy City Manager SM 7/3/2022 Monthly 688 11,027 11,590 12,180 12,802 13,455 14,140 Deputy Public Works Director SM 7/3/2022 Monthly 690 11,137 11,707 12,302 12,930 13,590 14,282 Development Project Manager OMA 1/1/2023 Monthly 591 6,797 7,145 7,508 7,891 8,294 8,717 Digital Marketing Coordinator OMA 1/1/2023 Monthly 565 5,971 6,275 6,596 6,931 7,285 7,657 Economic Development Manager SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Economic Development Project Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Emergency Manager SM 7/3/2022 Monthly 639 8,636 9,078 9,539 10,026 10,538 11,075 Emergency Medical Services Manager SM 7/3/2022 Monthly 639 8,636 9,078 9,539 10,026 10,538 11,075 Employee Benefits Analyst SM 7/3/2022 Monthly 567 6,031 6,338 6,662 7,001 7,358 7,734 347

APPENDIX A
City of Orange
Citywide Pay Schedule - Revision Effective March 26, 2023 Approved by City Council on March 14, 2023
Classification Title Group Effective Salary Type Range Step A Step B Step C Step D Step E Step F Step G Step H Engineering Intern PT&LD 12/4/2022 Hourly 430 17.57 18.47 19.40 Engineering Technician I OMEA 1/1/2023 Monthly 520 4,770 5,014 5,269 5,538 5,821 6,118 Engineering Technician II OMEA 1/1/2023 Monthly 540 5,271 5,540 5,822 6,119 6,431 6,759 Environmental Compliance Specialist OMEA 1/1/2023 Monthly 544 5,377 5,651 5,940 6,243 6,561 6,896 Environmental Program Manager OMA 1/1/2023 Monthly 643 8,810 9,261 9,731 10,228 10,750 11,298 Environmental Scientist OMEA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Equipment Maint Leadworker OMCEA 1/1/2023 Monthly 537 5,193 5,458 5,736 6,028 6,336 6,659 Equipment Maint. Superintendent SM 7/3/2022 Monthly 627 8,134 8,550 8,985 9,443 9,926 10,431 Equipment Maintenance Supervisor OMA 1/1/2023 Monthly 589 6,730 7,074 7,433 7,813 8,212 8,630 Equipment Mechanic I OMCEA 1/1/2023 Monthly 507 4,471 4,699 4,939 5,191 5,455 5,734 Equipment Mechanic II OMCEA 1/1/2023 Monthly 527 4,940 5,192 5,457 5,735 6,028 6,335 Equipment Operator OMCEA 1/1/2023 Monthly 519 4,747 4,989 5,243 5,510 5,792 6,087 Equipment Parts Technician OMCEA 1/1/2023 Monthly 507 4,471 4,699 4,939 5,191 5,455 5,734 Executive Assistant SM 7/3/2022 Monthly 521 4,794 5,039 5,296 5,566 5,850 6,148 Executive Assistant to the Chief SM 7/3/2022 Monthly 541 5,297 5,568 5,851 6,150 6,463 6,793 Facilities Maintenance Supervisor OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Field Services Manager SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Finance Assistant OMEA 1/1/2023 Monthly 523 4,842 5,089 5,349 5,622 5,908 6,210 Finance Clerk OMEA 1/1/2023 Monthly 488 4,067 4,274 4,492 4,721 4,962 5,215 Finance Coordinator OMA 1/1/2023 Monthly 566 6,001 6,307 6,629 6,966 7,322 7,695 Finance Director EM 7/3/2022 Monthly 730 13,596 14,291 15,018 15,785 16,590 17,436 Finance Manager SM 7/3/2022 Monthly 606 7,325 7,700 8,091 8,504 8,938 9,394 Finance Supervisor OMA 1/1/2023 Monthly 586 6,630 6,969 7,324 7,697 8,090 8,503 Financial Analyst SM 7/3/2022 Monthly 578 6,371 6,696 7,037 7,396 7,773 8,170 Fire Battalion Chief OFMA 6/19/2022 Monthly 694.5 11,390 11,972 12,581 13,224 13,898 14,606 Fire Captain Local 2384 6/19/2022 Monthly F645.5 10,622 10,622 10,622 10,622 10,622 Fire Chief EM 7/3/2022 Monthly 753 15,249 16,029 16,844 17,704 18,607 19,555 Fire Engineer Local 2384 6/19/2022 Monthly F614.5 7,486 7,860 8,253 8,666 9,099 Fire Inspector/Investigator Local 2384 6/19/2022 Monthly F633.5 10,004 10,004 10,004 10,004 10,004 Fire Safety Specialist Local 2384 6/19/2022 Monthly F595.5 6,808 7,148 7,506 7,881 8,275 Firefighter Local 2384 6/19/2022 Monthly F589.5 6,607 6,937 7,284 7,649 8,031 Forensic Services Specialist COPA 6/19/2022 Monthly 527P 4,940 5,192 5,457 5,735 6,028 6,335 6,588 Forensic Services Supv PMA 6/19/2022 Monthly 621PM 7,895 8,298 8,720 9,165 9,633 10,124 10,478 GIS Analyst OMEA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Hazardous Materials Spec Local 2384 6/19/2022 Monthly F615.5 7,523 7,899 8,294 8,709 9,144 Historic Preservation Planner OMA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Homeless Outreach Specialist COPA 6/19/2022 Monthly 523P 4,842 5,089 5,349 5,622 5,908 6,210 6,458 Housing Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Housing Specialist OMEA 1/1/2023 Monthly 544 5,377 5,651 5,940 6,243 6,561 6,896 Human Resources Analyst I SM 7/3/2022 Monthly 559 5,795 6,090 6,401 6,727 7,070 7,431 Human Resources Analyst II SM 7/3/2022 Monthly 586 6,630 6,969 7,324 7,697 8,090 8,503 Human Resources Director EM 7/3/2022 Monthly 725 13,261 13,939 14,648 15,396 16,181 17,006 Human Resources Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Human Resources Technician OMEA 1/1/2023 Monthly 518 4,723 4,964 5,217 5,483 5,763 6,057 Information Technology Manager SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Information Technology Project Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Information Technology Specialist OMA 1/1/2023 Monthly 565 5,971 6,275 6,596 6,931 7,285 7,657 Information Technology Supervisor OMA 1/1/2023 Monthly 590 6,764 7,109 7,470 7,852 8,253 8,673 Intergovernmental & Comm Affairs Mgr SM 7/3/2022 Monthly 666 9,881 10,386 10,914 11,471 12,057 12,671 Internal Audit Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Investment/Revenue Officer SM 7/3/2022 Monthly 594 6,900 7,253 7,621 8,010 8,419 8,848 Landscape Coordinator OMA 1/1/2023 Monthly 591 6,797 7,145 7,508 7,891 8,294 8,717 Lead Business License Inspector OMEA 1/1/2023 Monthly 548 5,485 5,766 6,059 6,369 6,693 7,035 Lead Custodian OMCEA 1/1/2023 Monthly 480 3,907 4,107 4,316 4,537 4,768 5,011 Lead Finance Clerk OMEA 1/1/2023 Monthly 548 5,485 5,766 6,059 6,369 6,693 7,035 Legal Assistant OMA 1/1/2023 Monthly 538 5,219 5,485 5,765 6,059 6,368 6,692 Librarian I OMEA 1/1/2023 Monthly 526 4,916 5,166 5,430 5,707 5,998 6,303 Librarian II OMEA 1/1/2023 Monthly 546 5,431 5,708 5,999 6,305 6,627 6,965 Librarian III OMEA 1/1/2023 Monthly 566 6,001 6,307 6,629 6,966 7,322 7,695 Library Assistant OMEA 1/1/2023 Monthly 486 4,026 4,232 4,448 4,674 4,913 5,163 Library Clerk OMEA 1/1/2023 Monthly 440 3,201 3,364 3,536 3,716 3,906 4,105 Library Literacy Coordinator OMEA 1/1/2023 Monthly 526 4,916 5,166 5,430 5,707 5,998 6,303 Library Manager I OMA 1/1/2023 Monthly 594 6,900 7,253 7,621 8,010 8,419 8,848 Library Manager II OMA 1/1/2023 Monthly 604 7,253 7,624 8,011 8,420 8,850 9,300 348
City of Orange
Citywide Pay Schedule - Revision Effective March 26, 2023 Approved by City Council on March 14, 2023
Classification Title Group Effective Salary Type Range Step A Step B Step C Step D Step E Step F Step G Step H Library Page OMEA 1/1/2023 Monthly 411 2,769 2,912 3,060 3,215 3,379 3,552 Library Services Director EM 7/3/2022 Monthly 695 11,418 12,002 12,612 13,257 13,933 14,643 Library Support Services Assistant OMEA 1/1/2023 Monthly 486 4,026 4,232 4,448 4,674 4,913 5,163 Library Tech & Support Services Mgr OMA 1/1/2023 Monthly 604 7,253 7,624 8,011 8,420 8,850 9,300 Library Technology Assistant OMEA 1/1/2023 Monthly 486 4,026 4,232 4,448 4,674 4,913 5,163 Library Technology Coordinator OMEA 1/1/2023 Monthly 546 5,431 5,708 5,999 6,305 6,627 6,965 Library Technology Specialist OMEA 1/1/2023 Monthly 526 4,916 5,166 5,430 5,707 5,998 6,303 Library Volunteer Coordinator OMEA 1/1/2023 Monthly 510 4,538 4,770 5,013 5,269 5,538 5,820 Lifeguard/Swim Instructor PT&LD 12/4/2022 Hourly 462 20.61 21.66 22.76 Maintenance Worker OMCEA 1/1/2023 Monthly 469 3,699 3,887 4,086 4,294 4,513 4,744 Management Intern PT&LD 12/4/2022 Hourly 430 17.57 18.47 19.40 Manager of Trans Svcs/City Traffic Eng SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Network/Security Analyst SM 7/3/2022 Monthly 605 7,289 7,662 8,051 8,462 8,894 9,347 Office Assistant OMEA 1/1/2023 Monthly 460 3,537 3,717 3,906 4,106 4,315 4,536 Parking Control Officer I PT&LD 12/4/2022 Hourly 442 18.65 19.60 20.61 Parking Control Officer II COPA 6/19/2022 Monthly 494P 4,191 4,404 4,629 4,865 5,112 5,374 5,588 Parks and Facilities Attendant PT&LD 12/4/2022 Hourly 460 20.40 21.45 22.54 Parks and Facilities Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Parks Maint Leadworker OMCEA 1/1/2023 Monthly 527 4,940 5,192 5,457 5,735 6,028 6,335 Parks Maintenance Supervisor OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Parks Maintenance Worker I OMCEA 1/1/2023 Monthly 469 3,699 3,887 4,086 4,294 4,513 4,744 Parks Maintenance Worker II OMCEA 1/1/2023 Monthly 489 4,087 4,296 4,515 4,745 4,987 5,241 Payroll Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Payroll Specialist OMA 1/1/2023 Monthly 558 5,766 6,060 6,369 6,694 7,035 7,394 Payroll Technician OMEA 1/1/2023 Monthly 548 5,485 5,766 6,059 6,369 6,693 7,035 Permit Supervisor OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Permit Technician OMEA 1/1/2023 Monthly 510 4,538 4,770 5,013 5,269 5,538 5,820 Plan Check Engineer OMEA 1/1/2023 Monthly 591 6,797 7,145 7,508 7,891 8,294 8,717 Plan Examiner Local 2384 6/19/2022 Monthly F615.5 7,523 7,899 8,294 8,709 9,144 Planning Aide OMEA 1/1/2023 Monthly 519 4,747 4,989 5,243 5,510 5,792 6,087 Planning Manager SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Police Academy Trainee PT&LD 12/4/2022 Monthly 574 6,245 Police Administrative Assistant COPA 6/19/2022 Monthly 507P 4,471 4,699 4,939 5,191 5,455 5,734 5,963 Police Armorer COPA 6/19/2022 Monthly 507P 4,471 4,699 4,939 5,191 5,455 5,734 5,963 Police Cadet I PT&LD 12/4/2022 Hourly 430 17.57 18.47 19.40 Police Cadet II PT&LD 12/4/2022 Hourly 450 19.41 20.40 21.44 Police Captain PMA 6/19/2022 Monthly 739PM 14,220 14,947 15,707 16,510 17,352 18,236 18,875 Police Chief EM 7/3/2022 Monthly 774 16,935 17,801 18,706 19,661 20,664 21,718 Police Clerk COPA 6/19/2022 Monthly 486P 4,026 4,232 4,448 4,674 4,913 5,163 5,370 Police Code Enforcement Officer COPA 6/19/2022 Monthly 560P 5,824 6,121 6,433 6,761 7,106 7,468 7,767 Police Communications Manager PMA 6/19/2022 Monthly 615PM 7,662 8,054 8,463 8,895 9,349 9,825 10,169 Police Dispatch Shift Supervisor COPA 6/19/2022 Monthly 564P 5,941 6,244 6,563 6,897 7,249 7,619 7,924 Police Dispatcher COPA 6/19/2022 Monthly 546P 5,431 5,708 5,999 6,305 6,627 6,965 7,243 Police Jailer COPA 6/19/2022 Monthly 507P 4,471 4,699 4,939 5,191 5,455 5,734 5,963 Police Lieutenant PMA 6/19/2022 Monthly 699SL 11,648 12,244 12,866 13,524 14,213 14,938 15,834 16,388 Police Officer COPA 6/19/2022 Monthly 603P 7,217 7,586 7,971 8,378 8,806 9,254 9,625 Police Records Clerk COPA 6/19/2022 Monthly 486P 4,026 4,232 4,448 4,674 4,913 5,163 5,370 Police Records Manager PMA 6/19/2022 Monthly 614PM 7,624 8,014 8,421 8,851 9,302 9,776 10,119 Police Records Shift Supervisor COPA 6/19/2022 Monthly 546P 5,431 5,708 5,999 6,305 6,627 6,965 7,243 Police Reserve Officer I PT&LD 12/4/2022 Hourly 459 20.30 21.34 22.43 Police Reserve Officer II PT&LD 12/4/2022 Hourly 419 16.63 17.48 18.37 Police Reserve Officer III PT&LD 12/4/2022 Hourly 405 15.51 16.30 17.13 Police Sergeant PMA 6/19/2022 Monthly 657SL 9,448 9,930 10,435 10,968 11,528 12,114 12,841 13,291 Police Services Officer COPA 6/19/2022 Monthly 507P 4,471 4,699 4,939 5,191 5,455 5,734 5,963 Police Subpoenas & Warrants Specialist COPA 6/19/2022 Monthly 507P 4,471 4,699 4,939 5,191 5,455 5,734 5,963 Police Training Coordinator COPA 6/19/2022 Monthly 517P 4,700 4,939 5,191 5,456 5,734 6,027 6,268 Police Volunteer Coordinator COPA 6/19/2022 Monthly 535P 5,141 5,403 5,679 5,969 6,273 6,593 6,856 Pool Manager PT&LD 12/4/2022 Hourly 502 25.16 26.45 27.79 Principal Civil Engineer SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Principal Planner SM 7/3/2022 Monthly 644 8,854 9,307 9,780 10,279 10,804 11,354 Project Development Coordinator OMA 1/1/2023 Monthly 591 6,797 7,145 7,508 7,891 8,294 8,717 Project Engineer OMEA 1/1/2023 Monthly 601 7,145 7,510 7,892 8,295 8,718 9,162 Property Officer COPA 6/19/2022 Monthly 521P 4,794 5,039 5,296 5,566 5,850 6,148 6,394 Public Affairs & Information Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 349
City of Orange
Citywide Pay Schedule - Revision Effective March 26, 2023 Approved by City Council on March 14, 2023
Classification Title Group Effective Salary Type Range Step A Step B Step C Step D Step E Step F Step G Step H Public Works Administrative Manager SM 7/3/2022 Monthly 624 8,014 8,423 8,851 9,303 9,779 10,276 Public Works Director EM 7/3/2022 Monthly 730 13,596 14,291 15,018 15,785 16,590 17,436 Public Works Maintenance Leadworker OMCEA 1/1/2023 Monthly 527 4,940 5,192 5,457 5,735 6,028 6,335 Public Works Maintenance Supervisor OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Public Works Maintenance Worker I OMCEA 1/1/2023 Monthly 469 3,699 3,887 4,086 4,294 4,513 4,744 Public Works Maintenance Worker II OMCEA 1/1/2023 Monthly 489 4,087 4,296 4,515 4,745 4,987 5,241 Purchasing Officer SM 7/3/2022 Monthly 606 7,325 7,700 8,091 8,504 8,938 9,394 Real Property Agent OMA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Recreation Services Activity Specialist PT&LD 7/1/2022 H o url y 489 23.58 24.78 26.05 Recreation Services Coordinator OMEA 1/1/2023 Monthly 527 4,940 5,192 5,457 5,735 6,028 6,335 Recreation Services Leader I PT&LD 12/4/2022 Hourly 412 16.06 16.88 17.74 Recreation Services Leader II PT&LD 12/4/2022 Hourly 432 17.74 18.65 19.60 Recreation Services Leader III PT&LD 12/4/2022 Hourly 452 19.61 20.61 21.66 Recreation Services Manager SM 7/3/2022 Monthly 645 8,898 9,354 9,829 10,330 10,858 11,411 Recreation Services Supervisor OMA 1/1/2023 Monthly 584 6,564 6,899 7,251 7,621 8,009 8,418 Risk Management Analyst SM 7/3/2022 Monthly 557 5,737 6,030 6,338 6,661 7,000 7,357 Risk Manager SM 7/3/2022 Monthly 659 9,541 10,030 10,539 11,077 11,643 12,236 School Crossing Guard PT&LD 12/4/2022 Hourly 430 17.57 18.47 19.40 School Crossing Guard Supervisor PT&LD 12/4/2022 Hourly 470 21.45 22.54 23.69 Senior Accountant OMA 1/1/2023 Monthly 582 6,499 6,831 7,179 7,545 7,930 8,335 Senior Administrative Analyst SM 7/3/2022 Monthly 604 7,253 7,624 8,011 8,420 8,850 9,300 Senior Assistant City Attorney SM 7/3/2022 Monthly 710 12,305 12,934 13,592 14,286 15,015 15,780 Senior Assistant to the City Manager SM 7/3/2022 Monthly 655 9,354 9,832 10,332 10,859 11,413 11,994 Senior Buyer OMA 1/1/2023 Monthly 566 6,001 6,307 6,629 6,966 7,322 7,695 Senior Civil Engineer OMA 1/1/2023 Monthly 643 8,810 9,261 9,731 10,228 10,750 11,298 Senior Code Compliance Officer OMEA 1/1/2023 Monthly 564 5,941 6,244 6,563 6,897 7,249 7,619 Senior Combo. Building Inspector OMEA 1/1/2023 Monthly 580 6,435 6,763 7,108 7,470 7,851 8,252 Senior Contract Administrator OMA 1/1/2023 Monthly 611 7,510 7,895 8,296 8,719 9,164 9,631 Senior Econ Development Project Mgr SM 7/3/2022 Monthly 650 9,123 9,590 10,077 10,591 11,132 11,699 Senior Emergency Medical Svcs Mgr SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Senior Executive Assistant to the City Council and
the City Manager SM 7/3/2022 Monthly 571 6,152 6,466 6,795 7,143 7,507 7,889 Senior Finance Clerk OMEA 1/1/2023 Monthly 508 4,493 4,723 4,963 5,217 5,483 5,762 Senior Fire Inspection Specialist OMA 1/1/2023 Monthly 600 7,110 7,473 7,853 8,254 8,675 9,116 Senior GIS Analyst OMA 1/1/2023 Monthly 634 8,423 8,854 9,304 9,779 10,278 10,802 Senior Housing Manager SM 7/3/2022 Monthly 650 9,123 9,590 10,077 10,591 11,132 11,699 Senior Human Resources Analyst SM 7/3/2022 Monthly 616 7,700 8,094 8,505 8,940 9,396 9,874 Senior Landscape Coordinator OMA 1/1/2023 Monthly 611 7,510 7,895 8,296 8,719 9,164 9,631 Senior Legal Assistant OMA 1/1/2023 Monthly 558 5,766 6,060 6,369 6,694 7,035 7,394 Senior Library Clerk OMEA 1/1/2023 Monthly 470 3,718 3,907 4,107 4,316 4,536 4,767 Senior Library Manager SM 7/3/2022 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Senior Office Assistant OMEA 1/1/2023 Monthly 480 3,907 4,107 4,316 4,537 4,768 5,011 Senior Payroll Specialist OMA 2/26/2023 Monthly 568 6,061 6,370 6,695 7,036 7,395 7,772 Senior Permit Technician OMEA 1/1/2023 Monthly 530 5,015 5,270 5,540 5,822 6,118 6,431 Senior Plan Check Engineer OMA 1/1/2023 Monthly 643 8,810 9,261 9,731 10,228 10,750 11,298 Senior Planner OMA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Senior Police Clerk COPA 6/19/2022 Monthly 506P 4,449 4,675 4,914 5,165 5,428 5,705 5,933 Senior Traffic Signal Technician OMEA 1/1/2023 Monthly 580 6,435 6,763 7,108 7,470 7,851 8,252 Senior Water Meter Service Wkr WDEA 1/1/2023 Monthly 515 4,653 4,890 5,140 5,402 5,677 5,967 Senior Water Quality Inspector OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Skilled Maint Leadworker OMCEA 1/1/2023 Monthly 532 5,065 5,323 5,595 5,880 6,180 6,495 Skilled Maintenance Wkr -Water WDEA 1/1/2023 Monthly 512 4,583 4,818 5,063 5,322 5,594 5,878 Skilled Maintenance Worker – Facilities OMCEA 1/1/2023 Monthly 512 4,583 4,818 5,063 5,322 5,594 5,878 Skilled Maintenance Worker – Parks OMCEA 1/1/2023 Monthly 512 4,583 4,818 5,063 5,322 5,594 5,878 Skilled Maintenance Worker – Public Works OMCEA 1/1/2023 Monthly 512 4,583 4,818 5,063 5,322 5,594 5,878 Stock Clerk OMEA 1/1/2023 Monthly 469 3,699 3,887 4,086 4,294 4,513 4,744 Swimming Attendant PT&LD 12/4/2022 Hourly 412 16.06 16.88 17.74 Systems Analyst SM 7/3/2022 Monthly 605 7,289 7,662 8,051 8,462 8,894 9,347 Traffic Management Center Tech OMEA 1/1/2023 Monthly 580 6,435 6,763 7,108 7,470 7,851 8,252 Traffic Operations Superintendent OMA 1/1/2023 Monthly 599 7,074 7,436 7,814 8,213 8,632 9,071 Traffic Signal Technician I OMEA 1/1/2023 Monthly 520 4,770 5,014 5,269 5,538 5,821 6,118 Traffic Signal Technician II OMEA 1/1/2023 Monthly 540 5,271 5,540 5,822 6,119 6,431 6,759 Transportation Analyst OMEA 1/1/2023 Monthly 614 7,624 8,014 8,421 8,851 9,302 9,776 Tree Services Coordinator OMA 1/1/2023 Monthly 569 6,091 6,402 6,728 7,072 7,432 7,811 350
City of Orange
Citywide Pay Schedule - Revision Effective March 26, 2023 Approved by City Council on March 14, 2023
Classification Title Group Effective Salary Type Range Step A Step B Step C Step D Step E Step F Step G Step H Warehouse/Inventory Specialist OMEA 1/1/2023 Monthly 527 4,940 5,192 5,457 5,735 6,028 6,335 Water Maintenance Leadworker WDEA 1/1/2023 Monthly 532 5,065 5,323 5,595 5,880 6,180 6,495 Water Maintenance Supervisor OMA 1/1/2023 Monthly 579 6,403 6,729 7,073 7,433 7,812 8,211 Water Maintenance Worker I WDEA 1/1/2023 Monthly 473 3,773 3,966 4,168 4,381 4,605 4,839 Water Maintenance Worker II WDEA 1/1/2023 Monthly 493 4,170 4,382 4,606 4,841 5,087 5,347 Water Manager SM 7/3/2022 Monthly 675 10,335 10,863 11,415 11,998 12,610 13,253 Water Meter Service Worker I WDEA 1/1/2023 Monthly 481 3,927 4,128 4,338 4,559 4,792 5,036 Water Meter Service Worker II WDEA 1/1/2023 Monthly 501 4,339 4,561 4,793 5,038 5,295 5,565 Water Plant Operator I WDEA 1/1/2023 Monthly 506 4,449 4,675 4,914 5,165 5,428 5,705 Water Plant Operator II WDEA 1/1/2023 Monthly 526 4,916 5,166 5,430 5,707 5,998 6,303 Water Quality Inspector OMA 1/1/2023 Monthly 559 5,795 6,090 6,401 6,727 7,070 7,431 Water Yard Storekeeper WDEA 1/1/2023 Monthly 503 4,383 4,606 4,841 5,088 5,348 5,620 Group Key:

COPA: City of Orange Police Association
EM: Executive Management
Local 2384: Orange City Firefighters, Inc. Local 2384
OFMA: Orange Fire Management Association
OMA: Orange Management Association
OMCEA: Orange Maintenance and Crafts Employees' Association OMEA: Orange Municipal Employees' Association
PMA: Police Management Association
PT&LD: Part-Time & Limited Duration Employees
SM: Senior Management
WDEA: Water Division Employees' Association
351
Agenda Item
City Council
Item #: 9.1. 3/14/2023 File #: 23-0155
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Mary E. Binning, City Attorney

1. SUBJECT
Introduction and First Reading of Ordinance No. 02-23 authorizing City Councilmember health and retirement benefits.

2. SUMMARY
The proposed Ordinance provides City Councilmembers the option to receive medical, dental, and/or vision health benefits for themselves, paid by the City directly to the service provider, and also authorizes a defined contribution retirement plan.

3. RECOMMENDED ACTION
Introduce and conduct First Reading of Ordinance No. 02-23. An Ordinance of the City Council of the City of Orange amending Title 2 of the Orange Municipal Code by adding Chapter 2.09 relating to City Council health and retirement benefits.

4. FISCAL IMPACT
If all seven Councilmembers accept all health and retirement benefits and monthly compensation, the total annual expenditure for Ordinance No. 02-23 would be $90,636 for health benefits and $1,890 for retirement benefits and would be funded through General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 4: Provide Outstanding Public Service
e: Attract, retain and develop quality employees dedicated to public service.

6. DISCUSSION AND BACKGROUND
Ordinance No. 02-23 proposes to reinstate health and retirement benefits for City Councilmembers.

Under this Ordinance, City Councilmembers would have the option of having medical, dental, and vision insurance, or any combination thereof. Any City-offered health plan would be available to the Councilmember. Only the Councilmember would be covered and only while actively serving in office.

The premiums would be paid by the City directly to the service provider. If a Councilmember elects not to receive any or all of the health insurance offered, they would not be entitled to any cash-in-lieu payment. A Councilmember may waive these benefits.

In addition, Ordinance No. 02-23 would establish a defined contribution retirement plan for Councilmembers who receive a monthly salary from the City. Such a plan is required by law for City of Orange Printed on 3/9/2023Page 1 of 2
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Item #: 9.1. 3/14/2023 File #: 23-0155
Councilmembers who receive a monthly salary from the City. Such a plan is required by law for employees receiving a salary from the City. In lieu of Social Security, which the City does not participate in, and in lieu of opting for membership in the California Public Employees’Retirement System (CalPERS), the retirement plan for City Councilmembers would be that designated by the City for part-time employees. Currently, that plan is administered by Empower, a retirement financial services company. The required amount to be contributed would be 3.75% by the Councilmember and 3.75% by the City.

Upon the adoption of Ordinance No. 02-23, City staff will proceed to modify any contracts relating to health and retirement benefits, as well as any Administrative Policies requiring revision.

7. ATTACHMENTS
· Ordinance No. 02-23
City of Orange Printed on 3/9/2023Page 2 of 2
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Agenda Item
City Council
Item #: 9.1. 3/14/2023 File #: 23-0155
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Mary E. Binning, City Attorney

1. SUBJECT
Introduction and First Reading of Ordinance No. 02-23 authorizing City Councilmember health and retirement benefits.

5. STRATEGIC PLAN GOALS
Goal 4: Provide Outstanding Public Service
e: Attract, retain and develop quality employees dedicated to public service.

6. DISCUSSION AND BACKGROUND
Ordinance No. 02-23 proposes to reinstate health and retirement benefits for City Councilmembers.

In addition, Ordinance No. 02-23 would establish a defined contribution retirement plan for Councilmembers who receive a monthly salary from the City. Such a plan is required by law for City of Orange Printed on 3/9/2023Page 1 of 2
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Item #: 9.1. 3/14/2023 File #: 23-0155
Councilmembers who receive a monthly salary from the City. Such a plan is required by law for employees receiving a salary from the City. In lieu of Social Security, which the City does not participate in, and in lieu of opting for membership in the California Public Employees’Retirement System (CalPERS), the retirement plan for City Councilmembers would be that designated by the City for part-time employees. Currently, that plan is administered by Empower, a retirement financial services company. The required amount to be contributed would be 3.75% by the Councilmember and 3.75% by the City.

Upon the adoption of Ordinance No. 02-23, City staff will proceed to modify any contracts relating to health and retirement benefits, as well as any Administrative Policies requiring revision.

7. ATTACHMENTS
· Ordinance No. 02-23
City of Orange Printed on 3/9/2023Page 2 of 2
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ORDINANCE NO. 02-23

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING TITLE 2 OF THE

ORANGE MUNICIPAL CODE BY ADDING
CHAPTER 2.09 RELATING TO CITY COUNCIL
HEALTH AND RETIREMENT BENEFITS.

WHEREAS, in November 2011, the City Council adopted an ordinance eliminating health and retirement benefits that applied prospectively to future Mayors and City Councilmembers; and WHEREAS, most cities in Orange County offer benefits to their Councilmembers; and WHEREAS, the lack of benefits offered to City Councilmembers often dissuades interest or ability for citizens to serve as elected officials; and WHEREAS, Government Code Sections 53201 and 53208 provide the authority for the City Council to receive health benefits that are paid by the City; and WHEREAS, Government Code Section 53213 authorizes the City to establish a deferred compensation (retirement) plan for its employees, including City Councilmembers, and Empower is the City’s designated retirement plan for part-time employees not participating in the California Public Employees’ Retirement System.

WHEREAS, Government Code Section 53207 permits a City Councilmember to waive any or all of the health benefits permitted by this Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

This Ordinance is not a project under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378, because it involves administrative activities of the City that will not result in direct or indirect physical changes in the environment.

SECTION II:

Title 2, of the Orange Municipal Code is hereby amended to add Chapter 2.09 entitled “City Council Health and Retirement Benefits”, which shall read as follows:

Chapter 2.09 – CITY COUNCIL HEALTH AND RETIREMENT BENEFITS

2.09.010 - Authority.

The authority for the City Council to receive health and retirement benefits is set forth in Government Code Sections 53201, 53208, and 53213.
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2 2.09.020 – Health Benefits.

Notwithstanding any other provision of Title 2 of the Orange Municipal Code, City Councilmembers while actively serving in office may receive health benefits paid directly by the City to the service provider as follows:

A. Single-party premiums covering the Councilmember for any City-offered medical plan.

B. Single-party premiums covering the Councilmember for any City-offered dental plan.

C. Single-party premiums covering the Councilmember for any City-offered vision plan.

2.09.030 – Waiver.

A City Councilmember may waive any or all health benefits permitted by this Chapter.

Waiver of any or all health benefits does not entitle a Councilmember to additional consideration for a cash-in-lieu payment.

2.09.040 – Defined Contribution Retirement Plan.

As authorized by Government Code Section 53213, City Councilmembers while actively serving in office shall participate in a defined contribution retirement plan in lieu of Social Security contributions. The City shall contribute three and three-fourths percent (3.75%) of the Councilmember’s eligible earnings, or that amount required by law, toward the retirement plan.

Councilmembers shall contribute three and three-fourths percent (3.75%) of their eligible earnings, or that amount required by law, toward the retirement plan.

SECTION III:

To the extent required to implement the provisions of this Ordinance, City staff is directed to modify any Administrative Policies in conflict herewith, and modify any other contract relating to health or retirement benefits, and return to the City Council for City Council approvals deemed necessary.

SECTION IV:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
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3 SECTION V:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.

ADOPTED this day of , 2023.

Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ___ day of _____________, 2023, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2023 was duly passed and adopted by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
358
Agenda Item
City Council
Item #: 10.1. 3/14/2023 File #: 23-0154
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Mary E. Binning, City Attorney

1. SUBJECT
Public hearing to consider Introduction and First Reading of Ordinance No. 01-23 amending the Orange Municipal Code to update references to membership of committees and commissions and other administrative revisions, and finding of CEQA exemption.

2. SUMMARY
By Resolution No. 11432, the City Council established the membership of all possible City Council- appointed boards, committees and commissions at seven members. At the recommendation of the Planning Commission, Ordinance No. 01-23 amends the pertinent provisions of the Orange Municipal Code, including the Zoning Code, to increase the number of members of those committees and commissions mentioned therein to provide for seven members and the attendant quorum of four members.

3. RECOMMENDED ACTION
Introduce and conduct First Reading of Ordinance No. 01-23. An Ordinance of the City Council of the City of Orange amending various sections of the Orange Municipal Code to update membership references for the Planning Commission, Design Review Committee and Traffic Commission.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
d: Foster an environment of leadership, teamwork, and innovation. e: Attract, retain and develop quality employees dedicated to public service.

6. DISCUSSION AND BACKGROUND
Currently, except for the City’s Park Planning and Community Events Commission with seven members, all of the City’sboards, committees and commissions have five members. At its February 14, 2023, meeting, the City Council adopted Resolution No. 11432 which increased the number of members for all eligible City boards, committees and commissions to seven and set forth the membership qualifications for each appointed body. The Library Board of Trustees is set at five members pursuant to the Education Code, and cannot be increased.

In connection with increasing the membership of those appointed bodies, amendment of the Orange City of Orange Printed on 3/9/2023Page 1 of 2
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Item #: 10.1. 3/14/2023 File #: 23-0154
In connection with increasing the membership of those appointed bodies, amendment of the Orange Municipal Code (OMC) is required for those sections referencing the former number of members and the quorum needed for the pertinent bodies. Other related administrative revisions are included in the proposed Ordinance.

Approval of this Ordinance by the City Council will conform the pertinent provisions of the OMC to the membership numbers set forth in Resolution No. 11432.

7. ATTACHMENTS
· Ordinance No. 01-23 - REDLINED
· Ordinance No. 01-23 - CLEAN
City of Orange Printed on 3/9/2023Page 2 of 2
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Agenda Item
City Council
Item #: 10.1. 3/14/2023 File #: 23-0154
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Mary E. Binning, City Attorney

4. FISCAL IMPACT
None.

In connection with increasing the membership of those appointed bodies, amendment of the Orange City of Orange Printed on 3/9/2023Page 1 of 2
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Item #: 10.1. 3/14/2023 File #: 23-0154
In connection with increasing the membership of those appointed bodies, amendment of the Orange Municipal Code (OMC) is required for those sections referencing the former number of members and the quorum needed for the pertinent bodies. Other related administrative revisions are included in the proposed Ordinance.

Approval of this Ordinance by the City Council will conform the pertinent provisions of the OMC to the membership numbers set forth in Resolution No. 11432.

7. ATTACHMENTS
· Ordinance No. 01-23 - REDLINED
· Ordinance No. 01-23 - CLEAN
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ORDINANCE NO. 01-23

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF ORANGE AMENDING VARIOUS

SECTIONS OF THE ORANGE MUNICIPAL CODE TO

UPDATE MEMBERSHIP REFERENCES FOR THE

PLANNING COMMISSION, DESIGN REVIEW
COMMITTEE AND TRAFFIC COMMISSION.
[Pertinent provisions only]

THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION II:

Section 2.64.010 of the Orange Municipal Code, “Administration and Personnel – Planning Commission – Created,” is hereby revised to read as follows:

2.64.010 Created.

There is created a Planning Commission consisting of five seven members appointed by the Mayor with the approval of a majority of the City Council.

SECTION III:

Section 2.64.040 of the Orange Municipal Code, “Administration and Personnel – Planning Commission – Meetings,” is hereby revised to read as follows:

2.64.040 Meetings.

The regular meetings of the Planning Commission shall be held in the Council Chambers, Civic Center, 300 East Chapman Avenue, Orange, California, or at such other place as may be designated by the Planning Commission, on the first and third Monday of each month and shall convene at the hour of 7:00 P.M. at a time established by resolution of the City Council . In the event any such Monday is a legal holiday, such meeting shall be held the following Thursday , at the hour of 7:00 P.M.

SECTION IV:

Section 10.06.010 of the Orange Municipal Code, “Vehicles and Traffic – City Traffic Commission – Created-Membership,” is hereby revised to read as follows:

10.06.010 Created—Membership.

A City Traffic Commission is created consisting of five seven residents of the City, one resident being a school district representative, appointed by the Mayor with the consent of the 363
2 Council. The Chief of Police, or designee, and the City Traffic Engineer, or designee, shall serve as City Staff representatives to the City Traffic Commission. The City Traffic Engineer shall serve as secretary to the Commission.

SECTION V:

Section 10.06.040.A of the Orange Municipal Code, “Vehicles and Traffic – City Traffic Commission – Meetings and Quorum,” is hereby revised to read as follows:

A. Three Four members shall constitute a quorum. A majority vote of the quorum present shall be required for all commission actions. Failure to achieve a majority vote of members present shall constitute a denial of the proposed action.

SECTION VI:

Section 17.08.020.D.3.c of the Orange Municipal Code, “Zoning – Reviewing Bodies – Design Review Committee - Meetings,” is hereby revised to read as follows:
c. Three Four members shall constitute a quorum. A majority vote of the quorum present shall be required for all Committee actions. Failure to achieve a majority vote of members present shall constitute a denial of the proposed action.

SECTION VII:

Section 17.08.020.D.4.a of the Orange Municipal Code, “Zoning – Reviewing Bodies – Design Review Committee - Membership,” is hereby revised to read as follows:
a. The Design Review Committee shall consist of five seven members of the public. Committee members shall be persons who, as a result of their training, knowledge and experience, are qualified to analyze and interpret architectural and site planning information, including but not limited to, licensed landscape architects and architects, urban planners, engineers, and licensed general contractors. At least two of the members shall have professional experience in urban planning, architectural history or historic preservation and shall have general knowledge of architectural styles prevalent in Old Towne.

SECTION VIII:

Section 17.08.020.D.6 of the Orange Municipal Code, “Zoning – Reviewing Bodies – Design Review Committee – Rules and Regulations,” is hereby revised to read as follows:

6. Rules and Regulations. The Design Review Committee shall adopt and amend, by the affirmative vote of three four members, rules and regulations for the conduct of the Committee’s business consistent with this chapter subject to approval by the City Council. 364
ORDINANCE NO. 01-23

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF ORANGE AMENDING VARIOUS

SECTIONS OF THE ORANGE MUNICIPAL CODE TO

UPDATE MEMBERSHIP REFERENCES FOR THE

PLANNING COMMISSION, DESIGN REVIEW
COMMITTEE AND TRAFFIC COMMISSION.

THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

1. The subject Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines (Guidelines) Sections 15060(c)(2) and 15060(c)(3) because review and evaluation of potential impact of the Ordinance demonstrate that it will not result in a direct or reasonably foreseeable indirect physical change in the environment, and it is not a "project" as defined in Guideline 15378.

2. The subject Ordinance is exempt from CEQA per Guideline 15061(b)(3) because it can be seen with certainty, after review and evaluation of the facts regarding the Zoning Code administrative amendments, that there is substantial evidence that adoption of this Ordinance would not have a significant effect on the environment and the common sense exemption applies.

SECTION II:

Section 2.64.010 of the Orange Municipal Code, “Administration and Personnel – Planning Commission – Created,” is hereby revised to read as follows:

2.64.010 Created.

There is created a Planning Commission consisting of seven members appointed by the Mayor with the approval of a majority of the City Council.

SECTION III:

Section 2.64.040 of the Orange Municipal Code, “Administration and Personnel – Planning Commission – Meetings,” is hereby revised to read as follows:

2.64.040 Meetings.

The regular meetings of the Planning Commission shall be held in the Council Chambers, Civic Center, 300 East Chapman Avenue, Orange, California, or at such other place as may be designated by the Planning Commission, on the first and third Monday of each month at a time established by resolution of the City Council. In the event any such Monday is a legal holiday, such meeting shall be held the following Thursday.
365
2 SECTION IV:

Section 10.06.010 of the Orange Municipal Code, “Vehicles and Traffic – City Traffic Commission – Created-Membership,” is hereby revised to read as follows:

10.06.010 Created—Membership.

A City Traffic Commission is created consisting of seven residents of the City, appointed by the Mayor with the consent of the Council. The Chief of Police, or designee, and the City Traffic Engineer, or designee, shall be serve as City Staff representatives to the City Traffic Commission.

The City Traffic Engineer shall serve as secretary to the Commission.

SECTION V:

Section 10.06.040.A of the Orange Municipal Code, “Vehicles and Traffic – City Traffic Commission – Meetings and Quorum,” is hereby revised to read as follows:

A. Four members shall constitute a quorum. A majority vote of the quorum present shall be required for all commission actions. Failure to achieve a majority vote of members present shall constitute a denial of the proposed action.

SECTION VI:

Section 17.08.020.D.3.c of the Orange Municipal Code, “Zoning – Reviewing Bodies – Design Review Committee - Meetings,” is hereby revised to read as follows:
c. Four members shall constitute a quorum. A majority vote of the quorum present shall be required for all Committee actions. Failure to achieve a majority vote of members present shall constitute a denial of the proposed action.

SECTION VII:

Section 17.08.020.D.4.a of the Orange Municipal Code, “Zoning – Reviewing Bodies – Design Review Committee - Membership,” is hereby revised to read as follows:
a. The Design Review Committee shall consist of seven members of the public. Committee members shall be persons who, as a result of their training, knowledge and experience, are qualified to analyze and interpret architectural and site planning information, including but not limited to, licensed landscape architects and architects, urban planners, engineers, and licensed general contractors. At least two of the members shall have professional experience in urban planning, architectural history or historic preservation and shall have general knowledge of architectural styles prevalent in the Historic Districts.

SECTION VIII:

Section 17.08.020.D.6 of the Orange Municipal Code, “Zoning – Reviewing Bodies – Design Review Committee – Rules and Regulations,” is hereby revised to read as follows:
366
3 6. Rules and Regulations. The Design Review Committee shall adopt and amend, by the affirmative vote of four members, rules and regulations for the conduct of the Committee’s business consistent with this chapter subject to approval by the City Council.

SECTION IX:

SECTION X:

ADOPTED this day of , 2023.

Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
367
Agenda Item
City Council
Item #: 10.2. 3/14/2023 File #: 23-0070
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider amending and revising the Master Schedule of Fees and Charges to adopt new Water and Sewer Rates. Resolution Nos. 11436 and 11437.

2. SUMMARY
The City has completed a water and sewer rate study that concluded rate adjustments are needed over the next five years to sustain the water and sewer system. The study, conducted by Raftelis Financial Consultants, Inc., included: (1) the development of a financial plan and proposed revenue adjustments for the water and sewer enterprise to ensure financial sufficiency, adequate reserves, and funding for capital improvements, (2) a cost of service analysis for each enterprise, (3) the development of fair and equitable water and sewer rates compliant with the requirement of Proposition 218 that fairly and equitably recover costs from all customer classes, and (4) an update of the City’swater and sewer rate models to incorporate the resulting cost analysis of items 1, 2, and

3. 3. RECOMMENDED ACTION

1. Adopt Resolution No. 11436. A Resolution of the City Council of the City of Orange amending and revising the Master Schedule of Fees and Charges for sewer rates.

2. Adopt Resolution No. 11437. A Resolution of the City Council of the City of Orange amending and revising the Master Schedule of Fees and Charges for water rates.

3. Receive and file the Water and Sewer Rate Study conducted by Raftelis Financial Consultants, Inc.

4. FISCAL IMPACT
Implementation of the recommended water and sewer rates will result in additional revenues as follows:

FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Fund 600 (Water) $711,621 $4,151,802 $6,379,542 $8,261,287 $9,968,877 Fund 220 (Sewer) $60,646 $369,940 $577,531 $712,860 $824,151 Fund 520 $27,462 $167,518 $261,521 $322,801 $373,197
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Item #: 10.2. 3/14/2023 File #: 23-0070
(Sewer Construction)

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City routinely sets water and sanitation rates in 5-year increments. The last rate plan was set in 2017 with the final planned increase effective January 1, 2022. In late 2021, the City retained Raftelis Financial Consultants, Inc. (Raftelis) to conduct a new rate study for the water and sewer enterprises. As part of the study, a financial plan was developed to ensure that our water and sewer funds have adequate funding for operations, capital improvements, and reserves per City policy.

The major objectives of the study include (1) the development of a financial plan and proposed revenue adjustments for the water and sewer enterprises to ensure financial sufficiency, adequate reserves and funding for capital improvements, (2) a cost of service analysis for each enterprise, (3) the development of fair and equitable water and sewer rates compliant with the requirement of Proposition 218 that fairly and equitably recover costs from all customer classes, and (4) an update of the City’swater and sewer rate models to incorporate the resulting cost analysis of items 1, 2, and

3. The rate study must comply with Proposition 218, which stipulates that the increase cannot exceed the reasonable cost of providing services. It also requires the City to provide a public hearing notice to all property owners in its service area at least 45 days prior to the item being heard by the City Council. To comply with Proposition 218’snoticing requirements, the notice has been distributed to impacted property owners on or before January 27, 2023. A draft rate proposal is included in the notice.

The draft rate plan is proposing revenue adjustments for the water enterprise as follows:
· 7% effective April 1, 2023,
· 6% effective January 1, 2024,
· 4% effective January 1, 2025,
· 4% effective January 1, 2026
· 3% effective January 1, 2027.

Revenue adjustments for the sewer enterprise are being proposed as follows:
· 5% effective April 1, 2023
· 5% effective January 1, 2024
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Item #: 10.2. 3/14/2023 File #: 23-0070
· 3% effective January 1, 2025
· 2% effective January 1, 2026
· 2% effective January 1, 2027.

Significant factors that have influenced the proposed increases are reductions in water consumption due to State mandated conservation, inflation, PFAS groundwater contamination and the associated increase in imported water. We have also seen significant long-term increases in construction costs which have impacted expenditures from the current rate plan. The proposed rate generates revenue to cover the projected O&M and capital expenses over the course of the rate plan.

PROPOSED WATER RATES
The City currently has a fixed charge and a variable charge structure for each customer class that together comprise the water rate for consumers.

Fixed Charges: The fixed charge is a bi-monthly service charge based on the potential capacity demand that every individual service can place on the City’swater system. The potential capacity demand is reflected by the size of the line serving the customer’sproperty. The larger the line, the greater the water capacity demand. The charge remains the same (fixed) for each two-month billing period of service. The City also charges a fixed private fire service charge to customers with private fire service connections.

Variable Charges: The variable charges are based on the number of units of water delivered to a property during a billing period (every two months). A unit of water is one hundred cubic feet (hcf) which is equal to 748 gallons. Variable charges include a tiered rate for both single family and condo customer classes (a single line serving a single dwelling unit) and a different tiered rate for multi- family customer classes (a single line serving multiple dwelling units), and an elevation charge for Zone 4 and 5 customers, to cover costs associated with pumping water to higher elevations. Lastly, the City passes through its wholesale water purchase costs through a volumetric pass-through rate.

As customers are billed bi-monthly, the tables below reflect the proposed bi-monthly rates.

Bi-monthly Fixed Charge
Meter Size Current Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 5/8" or 3/4" $32.05 $34.00 $36.04 $37.48 $38.98 $40.15
1" $48.96 $52.75 $55.92 $58.16 $60.49 $62.30
1 1/2" $91.24 $99.63 $105.61 $109.83 $114.22 $117.65
2" $141.98 $155.88 $165.23 $171.84 $178.71 $184.07
3" $260.38 $287.13 $304.36 $316.53 $329.19 $339.07
4" $429.51 $474.63 $503.11 $523.23 $544.16 $560.48
6" $852.35 $943.39 $999.99 $1,039.99 $1,081.59 $1,114.04 8" $2,036.29 $2,255.89 $2,391.24 $2,486.89 $2,586.37 $2,663.96 10" $3,220.23 $3,568.40 $3,782.50 $3,933.80 $4,091.15 $4,213.88 Bi-monthly Private Fire Service Charge
Fire Service SizeCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 5/8" or 3/4" $0.00 $0.23 $0.24 $0.25 $0.26 $0.27
1" $0.00 $0.48 $0.51 $0.53 $0.55 $0.57
1 1/2" $0.00 $1.41 $1.49 $1.55 $1.61 $1.66
2" $0.00 $2.97 $3.15 $3.28 $3.41 $3.51
3" $0.00 $8.62 $9.14 $9.51 $9.89 $10.19
4" $40.97 $18.38 $19.48 $20.26 $21.07 $21.70
6" $119.01 $53.38 $56.58 $58.84 $61.19 $63.03
8" $253.61 $113.75 $120.58 $125.40 $130.42 $134.33
10" $456.08 $204.56 $216.83 $225.50 $234.52 $241.56
12" $0.00 $330.42 $350.25 $364.26 $378.83 $390.19
16" $0.00 $704.13 $746.38 $776.24 $807.29 $831.51
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Item #: 10.2. 3/14/2023 File #: 23-0070
Fire Service SizeCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 5/8" or 3/4" $0.00 $0.23 $0.24 $0.25 $0.26 $0.27
1" $0.00 $0.48 $0.51 $0.53 $0.55 $0.57
1 1/2" $0.00 $1.41 $1.49 $1.55 $1.61 $1.66
2" $0.00 $2.97 $3.15 $3.28 $3.41 $3.51
3" $0.00 $8.62 $9.14 $9.51 $9.89 $10.19
4" $40.97 $18.38 $19.48 $20.26 $21.07 $21.70
6" $119.01 $53.38 $56.58 $58.84 $61.19 $63.03
8" $253.61 $113.75 $120.58 $125.40 $130.42 $134.33
10" $456.08 $204.56 $216.83 $225.50 $234.52 $241.56
12" $0.00 $330.42 $350.25 $364.26 $378.83 $390.19
16" $0.00 $704.13 $746.38 $776.24 $807.29 $831.51
Bi-monthly Variable Charge ($/hcf)
Volumetric RateCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Single Family & Condo
Tier 1 (0-23 hcf) $2.87 $3.08 $3.26 $3.39 $3.53 $3.64
Tier 2 (24-42 hcf) $2.95 $3.20 $3.39 $3.53 $3.67 $3.78
Tier 3 (43+ hcf) $3.05 $3.37 $3.57 $3.71 $3.86 $3.98
Multi-Family
Tier 1 (0-15 hcf) $2.87 $3.07 $3.25 $3.38 $3.52 $3.63
Tier 2 (16-19 hcf) $2.91 $3.14 $3.33 $3.46 $3.60 $3.71
Tier 3 (20+ hcf) $2.96 $3.20 $3.39 $3.53 $3.67 $3.78
Commercial $2.94 $3.20 $3.39 $3.53 $3.67 $3.78
Agriculture $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Construction $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Elevation Pumping Charge ($/hcf)
Pumping ZoneCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Zone 4 $0.26 $0.22 $0.23 $0.24 $0.25 $0.26
Zone 5 $0.68 $0.56 $0.59 $0.61 $0.63 $0.65
Pass-through charge:

A significant portion of the City’s water rates are influenced by our wholesale imported water purveyor, Metropolitan Water District of Orange County and our groundwater replenishment agency, the Orange County Water District. Since the City has no control over the charges from these agencies, it is recommended to continue with a pass-through charge.

Government Code Section 53756 authorizes agencies to adopt a schedule of fees or charges authorizing automatic adjustments that pass-through increases in wholesale charges for water and adjustments for inflation, for a period of five (5) years. The number of automatic adjustments (Pass- Through Charges) to account for changes in wholesale water costs will be based directly on the City of Orange Printed on 3/9/2023Page 4 of 6
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Item #: 10.2. 3/14/2023 File #: 23-0070
Through Charges) to account for changes in wholesale water costs will be based directly on the incremental difference in costs that the City will incur from these other agencies as a result of increases or decreases in the amount such agencies charge the City. Any such adjustments will only be made to the extent such increases or decreases are not already reflected in the schedule of charges then in effect. Data documenting the amount of the increase or decrease in water commodity costs and the basis for all adjustment calculations will be made available to the public upon request at the time of any automatic adjustment. The pass-through cost applies only to the volumetric usage charge component of the water used. A notice of at least 30 days will be provided to customers before any such adjustments will take effect. The formula for which the automatic Pass-Through Charge is calculated is as follows:

PROPOSED SEWER RATES
The City’ssewer service currently utilizes a set of bi-monthly fixed rates for its Residential customers (Single Family, Multi-Family, and Condos), and volumetric rate based on bi-monthly water use for its Commercial customers. The following tables show the proposed sewer service rates for the next five years.

Sewer Rate Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Bimonthly Fixed Rate for Residential Customers
SFR $15.85 $17.41 $18.28 $18.83 $19.21 $19.59
MFR $9.69 $9.42 $9.89 $10.19 $10.39 $10.60
Condo $9.69 $9.42 $9.89 $10.19 $10.39 $10.60
Commerical Volumetric Rate ($/hcf)
Commercial $0.59 $0.61 $0.64 $0.66 $0.68 $0.69
Capital Rate Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Bimonthly Fixed Rate for Residential Customers
SFR $7.15 $7.88 $8.28 $8.53 $8.70 $8.87
MFR $4.37 $4.27 $4.48 $4.61 $4.71 $4.80
Condo $4.37 $4.27 $4.48 $4.61 $4.71 $4.80
Commerical Volumetric Rate ($/hcf)
Commercial $0.27 $0.28 $0.29 $0.30 $0.31 $0.31
Based upon the rate study, the above rate adjustments will bring revenues back in line with expenditures over the next five fiscal years. In addition, it will allow for the water and sewer enterprises fund balance to build towards the operating reserve goal while funding the annual CIP projects.

With the proposed rate adjustments, the City of Orange will continue to have one of the lowest rates in the County while addressing the ongoing maintenance and replacement of critical infrastructure throughout the City. If approved by City Council, the rates will be effective on April 1, 2023. The Finance Department’sUtility Billing Division will implement these rates and utility bills will be prorated during the initial 60-day billing cycling to reflect the current rates and the proposed rates after the rate City of Orange Printed on 3/9/2023Page 5 of 6
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Item #: 10.2. 3/14/2023 File #: 23-0070
during the initial 60-day billing cycling to reflect the current rates and the proposed rates after the rate adjustment.

7. ATTACHMENTS
· Resolution No. 11436
· Resolution No. 11437
· Prop. 218 Notice
· Draft Water and Sewer Rate Study
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Agenda Item
City Council
Item #: 10.2. 3/14/2023 File #: 23-0070
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider amending and revising the Master Schedule of Fees and Charges to adopt new Water and Sewer Rates. Resolution Nos. 11436 and 11437.

3. 3. RECOMMENDED ACTION

1. Adopt Resolution No. 11436. A Resolution of the City Council of the City of Orange amending and revising the Master Schedule of Fees and Charges for sewer rates.

2. Adopt Resolution No. 11437. A Resolution of the City Council of the City of Orange amending and revising the Master Schedule of Fees and Charges for water rates.

3. Receive and file the Water and Sewer Rate Study conducted by Raftelis Financial Consultants, Inc.

4. FISCAL IMPACT
Implementation of the recommended water and sewer rates will result in additional revenues as follows:

FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Fund 600 (Water) $711,621 $4,151,802 $6,379,542 $8,261,287 $9,968,877 Fund 220 (Sewer) $60,646 $369,940 $577,531 $712,860 $824,151 Fund 520 $27,462 $167,518 $261,521 $322,801 $373,197
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Item #: 10.2. 3/14/2023 File #: 23-0070
(Sewer Construction)

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

Revenue adjustments for the sewer enterprise are being proposed as follows:
· 5% effective April 1, 2023
· 5% effective January 1, 2024
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Item #: 10.2. 3/14/2023 File #: 23-0070
· 3% effective January 1, 2025
· 2% effective January 1, 2026
· 2% effective January 1, 2027.

PROPOSED WATER RATES
The City currently has a fixed charge and a variable charge structure for each customer class that together comprise the water rate for consumers.

As customers are billed bi-monthly, the tables below reflect the proposed bi-monthly rates.

Bi-monthly Fixed Charge
Meter Size Current Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 5/8" or 3/4" $32.05 $34.00 $36.04 $37.48 $38.98 $40.15
1" $48.96 $52.75 $55.92 $58.16 $60.49 $62.30
1 1/2" $91.24 $99.63 $105.61 $109.83 $114.22 $117.65
2" $141.98 $155.88 $165.23 $171.84 $178.71 $184.07
3" $260.38 $287.13 $304.36 $316.53 $329.19 $339.07
4" $429.51 $474.63 $503.11 $523.23 $544.16 $560.48
6" $852.35 $943.39 $999.99 $1,039.99 $1,081.59 $1,114.04 8" $2,036.29 $2,255.89 $2,391.24 $2,486.89 $2,586.37 $2,663.96 10" $3,220.23 $3,568.40 $3,782.50 $3,933.80 $4,091.15 $4,213.88 Bi-monthly Private Fire Service Charge
Fire Service SizeCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 5/8" or 3/4" $0.00 $0.23 $0.24 $0.25 $0.26 $0.27
1" $0.00 $0.48 $0.51 $0.53 $0.55 $0.57
1 1/2" $0.00 $1.41 $1.49 $1.55 $1.61 $1.66
2" $0.00 $2.97 $3.15 $3.28 $3.41 $3.51
3" $0.00 $8.62 $9.14 $9.51 $9.89 $10.19
4" $40.97 $18.38 $19.48 $20.26 $21.07 $21.70
6" $119.01 $53.38 $56.58 $58.84 $61.19 $63.03
8" $253.61 $113.75 $120.58 $125.40 $130.42 $134.33
10" $456.08 $204.56 $216.83 $225.50 $234.52 $241.56
12" $0.00 $330.42 $350.25 $364.26 $378.83 $390.19
16" $0.00 $704.13 $746.38 $776.24 $807.29 $831.51
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Fire Service SizeCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 5/8" or 3/4" $0.00 $0.23 $0.24 $0.25 $0.26 $0.27
1" $0.00 $0.48 $0.51 $0.53 $0.55 $0.57
1 1/2" $0.00 $1.41 $1.49 $1.55 $1.61 $1.66
2" $0.00 $2.97 $3.15 $3.28 $3.41 $3.51
3" $0.00 $8.62 $9.14 $9.51 $9.89 $10.19
4" $40.97 $18.38 $19.48 $20.26 $21.07 $21.70
6" $119.01 $53.38 $56.58 $58.84 $61.19 $63.03
8" $253.61 $113.75 $120.58 $125.40 $130.42 $134.33
10" $456.08 $204.56 $216.83 $225.50 $234.52 $241.56
12" $0.00 $330.42 $350.25 $364.26 $378.83 $390.19
16" $0.00 $704.13 $746.38 $776.24 $807.29 $831.51
Bi-monthly Variable Charge ($/hcf)
Volumetric RateCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Single Family & Condo
Tier 1 (0-23 hcf) $2.87 $3.08 $3.26 $3.39 $3.53 $3.64
Tier 2 (24-42 hcf) $2.95 $3.20 $3.39 $3.53 $3.67 $3.78
Tier 3 (43+ hcf) $3.05 $3.37 $3.57 $3.71 $3.86 $3.98
Multi-Family
Tier 1 (0-15 hcf) $2.87 $3.07 $3.25 $3.38 $3.52 $3.63
Tier 2 (16-19 hcf) $2.91 $3.14 $3.33 $3.46 $3.60 $3.71
Tier 3 (20+ hcf) $2.96 $3.20 $3.39 $3.53 $3.67 $3.78
Commercial $2.94 $3.20 $3.39 $3.53 $3.67 $3.78
Agriculture $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Construction $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Elevation Pumping Charge ($/hcf)
Pumping ZoneCurrent RateApr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Zone 4 $0.26 $0.22 $0.23 $0.24 $0.25 $0.26
Zone 5 $0.68 $0.56 $0.59 $0.61 $0.63 $0.65
Pass-through charge:

Government Code Section 53756 authorizes agencies to adopt a schedule of fees or charges authorizing automatic adjustments that pass-through increases in wholesale charges for water and adjustments for inflation, for a period of five (5) years. The number of automatic adjustments (Pass- Through Charges) to account for changes in wholesale water costs will be based directly on the City of Orange Printed on 3/9/2023Page 4 of 6
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Item #: 10.2. 3/14/2023 File #: 23-0070
Through Charges) to account for changes in wholesale water costs will be based directly on the incremental difference in costs that the City will incur from these other agencies as a result of increases or decreases in the amount such agencies charge the City. Any such adjustments will only be made to the extent such increases or decreases are not already reflected in the schedule of charges then in effect. Data documenting the amount of the increase or decrease in water commodity costs and the basis for all adjustment calculations will be made available to the public upon request at the time of any automatic adjustment. The pass-through cost applies only to the volumetric usage charge component of the water used. A notice of at least 30 days will be provided to customers before any such adjustments will take effect. The formula for which the automatic Pass-Through Charge is calculated is as follows:

With the proposed rate adjustments, the City of Orange will continue to have one of the lowest rates in the County while addressing the ongoing maintenance and replacement of critical infrastructure throughout the City. If approved by City Council, the rates will be effective on April 1, 2023. The Finance Department’sUtility Billing Division will implement these rates and utility bills will be prorated during the initial 60-day billing cycling to reflect the current rates and the proposed rates after the rate City of Orange Printed on 3/9/2023Page 5 of 6
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during the initial 60-day billing cycling to reflect the current rates and the proposed rates after the rate adjustment.

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE AMENDING AND

REVISING THE MASTER SCHEDULE OF FEES
AND CHARGES FOR SEWER RATES.

WHEREAS, on March 14, 2023, a hearing was held before the City Council to consider the rates and charges assessed by the City in connection with provision of sewer service; and

WHEREAS, by January 27, 2023, the notice required by the majority protest procedure set forth in Article 13D, Section 6 of the California Constitution was mailed to all owners of record to announce the hearing date and proposed sewer rate adjustments; and

WHEREAS, the notice of the time and the place of the hearing was published in a newspaper of general circulation on February 23, 2023; and

WHEREAS, a sanitation rate study was prepared by Raftelis Financial Consultants Corporation, Inc., a consultant selected by the City because of its expertise in preparing sanitation rate studies on behalf of municipalities; and

WHEREAS, the written protests received do not constitute a majority of the property owners of the identified parcels upon which the sanitation rate will be charged; and

WHEREAS, the City Council has determined pursuant to Article 13D, Section 6 that the proposed sewer service rates do not exceed the estimated reasonable cost of providing sewer service and that such rates should be amended and included in the City's Master Schedule of Fees and Charges.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

Section 1. The Master Schedule of Fees and Charges is hereby amended to include Attachment "A" (Sewer Rates).

Section 2. The City Council finds that the rates and fees set forth in Attachment "A" do not exceed the City's estimated reasonable costs of providing the respective goods, facilities, and services for which the rates and fees are charged.

Section 3. Pursuant to Go vernment Code section 53756, t he sewer rates and fees include multi-year rate adjustments effective April 1st, 2023, January 1st, 2024, January 1st, 2025, January 1st, 2026, and January 1st, 2027.

Section 4. If any rates, fee, or charges set forth in this Resolution or the application thereof to any person or circumstance is held to be unconstitutional or otherwise invalid by any 380
2 court of competent jurisdiction, such invalidity shall not affect any other rate, fee, or charge, or application thereof, and to this end the rates, fees, and charges of this Resolution are declared to be severable.

ADOPTED this day of , 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

381
April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 5% 5% 3% 2% 2%
Bi-monthly Fixed Rate for Residential Customers Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 SFR 15.85$ 17.41$ 18.28$ 18.83$ 19.21$ 19.59$ MFR 9.69$ 9.42$ 9.89$ 10.19$ 10.39$ 10.60$ Condo 9.69$ 9.42$ 9.89$ 10.19$ 10.39$ 10.60$ Commercial Volumetric Rate ($/hcf)
Commercial 0.59$ 0.61$ 0.64$ 0.66$ 0.68$ 0.69$ Bi-monthly Fixed Rate for Residential Customers Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 SFR 7.15$ 7.88$ 8.28$ 8.53$ 8.70$ 8.87$ MFR 4.37$ 4.27$ 4.48$ 4.61$ 4.71$ 4.80$ Condo 4.37$ 4.27$ 4.48$ 4.61$ 4.71$ 4.80$ Commercial Volumetric Rate ($/hcf)
Commercial 0.27$ 0.28$ 0.29$ 0.30$ 0.31$ 0.31$ ATTACHMENT "A"
Proposed Sewer Service Rates
Sewer Rate
Capital Rate
Revenue Adjustment
382
RESOLUTION NO. 11437

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE AMENDING AND

REVISING THE MASTER SCHEDULE OF FEES
AND CHARGES FOR WATER RATES.

WHEREAS, on March 14, 2023, a hearing was held before the City Council to consider the rates and charges assessed by the City in connection with provision of water service; and

WHEREAS, the notice of the time and the place of the hearing was published in a newspaper of general circulation on February 23, 2023; and

WHEREAS, a water rate st udy was prepared by Raftelis Financial Consultants Corporation, Inc., a consultant selected by the City because of its expertise in preparing water rate studies on behalf of municipalities; and

WHEREAS, Government Code section 53756 authorizes the City to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water and adjustments for inflation; and

WHEREAS, the written protests received do not constitute a majority of the property owners of the identified parcels upon which the water rate will be charged; and

WHEREAS, the City Council has determined pursuant to Article 13D, Section 6 that the proposed water rates do not exceed the estimated reasonable cost of providing water service and that such water rates should be amended and included in the City's Master Schedule of Fees and Charges.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:

Section 1. The Master Schedule of Fees and Charges is hereby am ended to include Attachment "A" (Water Rates).

Section 3. Pursuant to Go vernment Code section 53756, t he water rates and fees include multi-year rate adjustments effective April 1st, 2023, January 1st, 2024, January 1st, 2025, January 1st, 2026, and January 1st, 2027.
383
2 Section 4. The City Council finds that the formula set for th in Attachment "B" is in accordance with Government Code Section 53756 and will calculate costs of providing the respective goods, facilities, and services for which the rates and fees are charged.

Section 5. If any rates, fee, or charges set forth in t his Resolution or the application thereof to any person or circumstance is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect any other rate, fee, or charge, or application thereof, and to this end the rates, fees, and charges of this Resolution are declared to be severable.

Section 6. Prior to the implementation of any pass-through adjustments in water rates and fees authorized by this Resolution, such pass-through adjustments shall be placed on the City Council agenda as a report and file item under the Consent Calendar.

ADOPTED this ____ day of ____________________, 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
384
April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 7% 6% 4% 4% 3%
Service Size (inch) Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 3/4 32.05$ 34.00$ 36.04$ 37.48$ 38.98$ 40.15$ 1 48.96$ 52.75$ 55.92$ 58.16$ 60.49$ 62.30$ 1 1/2 91.24$ 99.63$ 105.61$ 109.83$ 114.22$ 117.65$ 2 141.98$ 155.88$ 165.23$ 171.84$ 178.71$ 184.07$ 3 260.38$ 287.13$ 304.36$ 316.53$ 329.19$ 339.07$ 4 429.51$ 474.63$ 503.11$ 523.23$ 544.16$ 560.48$ 6 852.35$ 943.39$ 999.99$ 1,039.99$ 1,081.59$ 1,114.04$ 8 2,036.29$ 2,255.89$ 2,391.24$ 2,486.89$ 2,586.37$ 2,663.96$ 10 3,220.23$ 3,568.40$ 3,782.50$ 3,933.80$ 4,091.15$ 4,213.88$ Service Size (inch) Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 2 2.97$ 3.15$ 3.28$ 3.41$ 3.51$ 3 8.62$ 9.14$ 9.51$ 9.89$ 10.19$ 4 39.02$ 18.38$ 19.48$ 20.26$ 21.07$ 21.70$ 6 113.34$ 53.38$ 56.58$ 58.84$ 61.19$ 63.03$ 8 241.53$ 113.75$ 120.58$ 125.40$ 130.42$ 134.33$ 10 434.36$ 204.56$ 216.83$ 225.50$ 234.52$ 241.56$ 12 330.42$ 350.25$ 364.26$ 378.83$ 390.19$ 16 704.13$ 746.38$ 776.24$ 807.29$ 831.51$ Single Family & Condo Current
Tiers (hcf) Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Tier 1 0-23 2.87$ 3.08$ 3.26$ 3.39$ 3.53$ 3.64$ Tier 2 24-42 2.95$ 3.20$ 3.39$ 3.53$ 3.67$ 3.78$ Tier 3 >42 3.05$ 3.37$ 3.57$ 3.71$ 3.86$ 3.98$ Multi-Family Current
Tiers (hcf) Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Tier 1 0-15 2.87$ 3.07$ 3.25$ 3.38$ 3.52$ 3.63$ Tier 2 16-19 2.91$ 3.14$ 3.33$ 3.46$ 3.60$ 3.71$ Tier 3 >19 2.96$ 3.20$ 3.39$ 3.53$ 3.67$ 3.78$ Current
Tiers (hcf) Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Commercial N/A $ 2.94 3.20$ 3.39$ 3.53$ 3.67$ 3.78$ Agriculture N/A 2.93$ 3.30$ 3.50$ 3.64$ 3.79$ 3.90$ Construction Service N/A 2.93$ 3.30$ 3.50$ 3.64$ 3.79$ 3.90$ Current Rate April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 Zone 4 0.26$ 0.22$ 0.23$ 0.24$ 0.25$ 0.26$ Zone 5 0.68$ 0.56$ 0.59$ 0.61$ 0.63$ 0.65$ Elevation Pumping Charge
ATTACHMENT "A"
Proposed Water Service Rates
Sevice Capacity Charges
Fire Service Charges
Revenue Adjustment
Volumertric Rates
385

Attachment “B”
Proposed Pass-Through Formula

Because a significant portion of the City’s water rates are heavily influenced by costs assessed against the City by outside agencies, it is recommended that a pass through charge be included to account for these agency’s unanticipated future increases or decreases. Otherwise, the City may not be able to generate the funds required to maintain and operate the City’s water system and to comply with regulations imposed by State and Federal agencies Government Code Section 53756 authorizes agencies to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water and adjustments for inflation, for a period of five (5) years. The amount of automatic adjustments (Pass-Through Charges) to account for changes in wholesale water costs will be based directly on the incremental difference in costs that the City will incur from these other agencies as a result of increases or decreases in the a mount such agencies charge the City. Any such adjustments will only be made to the extent such increases or decreases are not already reflected in the schedule of charges then in effect. The specific outside agencies are:

• Orange County Water District (OCWD)
• Metropolitan Water District of Southern California (MWD) through its regional water wholesaler, the Municipal Water District of Orange County (MWDOC).

Data documenting the amount of the increase or decrease in water commodity costs and the basis for all adjustment calculations will be made available to the public upon request at the time of any automatic adjustment. The pass though cost applies only to the volumetric component of the water rate and will be assessed on all hcf’s used by a costumer. A n otice of at least 30 days will be provided to customers before any such adjustments will take effect. The formula for which the automatic Pass-Through Charge is calculated is as follows:

𝑃𝑎𝑠𝑠 𝑡ℎ𝑟𝑜𝑢𝑔ℎ 𝑟𝑎𝑡𝑒 ( $
ℎ𝑐𝑓) = (𝑃𝑟𝑜𝑝𝑜𝑠𝑒𝑑 𝐹𝑌 𝑊𝑎𝑡𝑒𝑟 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝐶𝑜𝑠𝑡𝑠 − 𝐵𝑎𝑠𝑒𝑙𝑖𝑛𝑒 𝐹𝑌 𝑊𝑎𝑡𝑒𝑟 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝐶𝑜𝑠𝑡𝑠) (𝐶𝑎𝑙𝑒𝑛𝑑𝑎𝑟 𝑌𝑒𝑎𝑟 𝑊𝑎𝑡𝑒𝑟 𝑈𝑠𝑒)
386
300 E. Chapman Ave.

Orange, CA 92866

PUBLIC HEARING AND PROTEST PROCEEDINGS
Both in person and mailed written protests must be received prior to the close of the public hearing on Tuesday, March 14, 2023. Each written protest must clearly identify the property or account, reference the proposed rate increases and must include the signature of the property owner or tenant, as applicable. Due to the inability to verify the authenticity of each individual protest, protests received by telephone, electronic mail (e-mail), or via social media sites, including, but not limited to, Facebook or Twitter shall NOT be accepted. All interested parties are invited to attend the public hearing and present written protests and/or oral comments on the proposed rate increases referenced herein. Oral comments made at the public hearing will qualify as formal protests of the proposed rate increases if accompanied by a written protest setting forth the required information (as set forth above). If written protests are submitted by a majority of the affected property owners or customers, the proposed increase(s) will not be imposed.

WHY IS THE CITY PROPOSING RATE INCREASES?
The City of Orange (City) is subject to Proposition 218 and therefore is required by law to charge its customers only what is necessary to provide water and sewer services. The City is proud to have some of the lowest water and wastewater rates in Orange County.

The City is dedicated to keeping rates low by maintaining efficient staffing levels and using reserves when necessary.

The recent drought has decreased City reserves while the costs associated with providing water and wastewater collection service as well as maintaining both systems continue to rise. The City proposes rate adjustments in order to sufficiently fund the increasing costs of operating, maintaining, and replacing the water and sewer systems. The City’s cost to provide water and sewer service includes the cost of: (1) operations and maintenance; and (2) repair and rehabilitation of each system.

WATER
Many outside factors influence the cost of providing safe and reliable water to our customers. In general, the water the City provides to customers comes from a combination of water pumped from the groundwater basin managed by the Orange County Water District (OCWD) and water purchased on a wholesale basis from the Metropolitan Water District of Southern California (MET) through its regional water wholesaler, the Municipal Water District of Orange County (MWDOC). All water produced is pressurized through use of electric pumps and motors and subject to Southern California Edison (SCE) power rates. These three outside agencies (OCWD, MET/MWDOC, and SCE) and the charges they impose on the City have a significant impact on the City’s water rates. The City has no control over the rates it must pay OCWD, MET/MWDOC, and SCE to acquire and produce water.

The City’s water rates can only reflect those direct costs to provide water service to customers, and do not include a profit margin. The costs include: the repair, rehabilitation, and replacement of critical water system infrastructure; water supply and power costs based on charges for imported water; groundwater costs; energy costs for the City’s wells and pump stations; and system operations and maintenance costs to ensure water supply reliability and quality 24/7/365. The proposed increase will enable the City to balance its water service revenues and expenditures, and maintain sufficient funds to repair and/or replace aging water infrastructure. If the increase is approved, Orange water rates will still be among the lowest in Orange County.

PROPOSED WATER RATES
The City currently has a fixed charge and a variable charge structure for each customer class that together comprise the water rate for consumers. As customers are billed bi-monthly, the charts below reflect the proposed bi-monthly rates.

Fixed Charges: The fixed charge is a bi-monthly service charge based on the potential capacity demand that every individual service can place on the City’s water system. The potential capacity demand is reflected by the size of the line serving the customer’s property. The larger the line, the greater the water capacity demand. The charge remains the same (fixed) for each two-month billing period of service. The City also charges a fixed private fire service charge to customers with private fire service connections.

Variable Charges: The variable charges are based on the number of units of water delivered to a property during a billing period (every two months). A unit of water is 100 cubic feet (hcf) which is equal to 748 gallons. Variable charges include a tiered rate for both single family and condo customer classes (a single line serving a single dwelling unit) and a different tiered rate for multi-family customer classes (a single line serving multiple dwelling units), and an elevation charge for Zone 4 and 5 customers, to cover costs associated with pumping water to higher elevations.

Lastly, the City passes through its wholesale water purchase costs through a volumetric pass-through rate.

The City proposes to maintain this rate structure and incorporate a new item: a capital charge recovered through and fixed charge and volumetric rate to fund necessary capital repair and rehabilitation. The proposed rates and charges are shown in the tables inside.

NOTICE OF PUBLIC HEARING
Proposed Adjustment in Water and Sewer Rates
NOTICE IS HEREBY GIVEN that on Tuesday, March 14, 2023, at 6:00 p.m., or as soon thereafter as the matter may be heard, a public hearing will be held at the City of Orange City Council Chambers located at 300 East Chapman Avenue, Orange, CA 92866 to consider proposed increases to the City’s water and sewer rates and charges. If approved by City Council, the proposed rate increases will be effective for services provided on or after April 1, 2023.

Pursuant to State law, protests may be provided by any City customer, or owner of property subject to the proposed rate changes, against any or all of the proposed rate changes described in this Notice. Written protests may be submitted in person to the City Council at the Public Hearing. They may also be submitted by mail addressed to:

City Clerk
City of Orange
300 East Chapman Avenue
Orange, CA 92866.

ADDITIONAL INFORMATION
A report explaining the methodology for determining
the rates and the cost-of-service analysis will be
available in the City Clerk’s Office at the address
listed above on or about February 6, 2023, and will
also be posted on the City’s website. As required
by Government Code Section 66016, the report will
also provide data indicating the amount of cost or
estimated cost to provide water and sewer service,
and the revenue sources anticipated to provide the
service.

The proposed water and sanitation rate adjustments
are applicable to properties served by City’s water
and sewer enterprises. These rates do not impact
customers being served by other agencies.

Frequently asked questions (FAQ’s) about the
proposed rate increase and the answers to those
questions are available on the City’s website by
visiting www.cityoforange.org. If you have additional
questions or want more information about the
proposed rate increase, please contact 714-744-
2233 during regular business hours, or email us at
[email protected]
Presort Std.

U.S. Postage
PAID
Santa Ana, CA
Permit No. 647
387

WATER PASS-THROUGH CHARGE
A significant portion of the City’s water rates are influenced by wholesale water agencies. Since the City has no control over these charges, it is recommended to continue with a pass-through charge.

Government Code Section 53756 authorizes agencies to adopt a schedule of fees or charges authorizing automatic adjustments that pass-through increases in wholesale charges for water and adjustments for inflation, for a period of five (5) years. The amount of automatic adjustments (Pass-Through Charges) to account for changes in wholesale water costs will be based directly on the incremental difference in costs that the City will incur from these other agencies as a result of increases or decreases in the amount such agencies charge the City. Any such adjustments will only be made to the extent such increases or decreases are not already reflected in the schedule of charges then in effect. Data documenting the amount of the increase or decrease in water commodity costs and the basis for all adjustment calculations will be made available to the public upon request at the time of any automatic adjustment. The pass-through cost applies only to the volumetric usage charge component of the water used and will be assessed on all hcf’s used by a customer. A notice of at least 30 days will be provided to customers before any such adjustments will take effect. The formula for which the automatic Pass-Through Charge is calculated is as follows:

SEWER
The City’s sewer rates also only cover costs to fund sewer expenses and repair and replace the sewer system.

Rates do not include a profit margin. The City currently maintains 312 miles of sewer collection pipelines and has approximately 33,010 sewer connections. The sewer pipe age varies from more than 110-years old to less than 5, and on average it costs around $2 million per mile to replace 8-inch sewer main pipe. In order to adequately maintain the sewer system to ensure the system functions properly and prevent sewerage spills, the City needs to develop and regularly update a financial plan for the sanitation enterprise to meet operation and maintenance costs, and fund necessary capital improvements.

The City is dedicated to keeping rates low by maintaining efficient operations and maintenance. The cost associated with providing wastewater collection service as well as maintaining sewer facilities continue to rise, so the City is proposing rate adjustments in order to sufficiently fund the increasing costs of operating, maintaining, and replacing the sewer system. The City’s cost to provide sewer and environmental compliance services includes the cost of: (1) operations and maintenance; and (2) repair, rehabilitation, and replacement of the system; and (3) storm water management and environmental compliances.

PROPOSED SEWER and CAPITAL RATES
The City’s sewer service currently utilizes a set of bi-monthly fixed rates for its Residential customers (Single Family, Multi-Family, and Condos), and volumetric, per hcf rate based on bi-monthly water use for its Commercial customers. The City plans to maintain this rate structure in future years with necessary revenue adjustments applied to its current set of rates. The following table shows the proposed sewer service rates for the next

five years.

Bi-monthly Fixed Charge
Current
Meter Size Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 (A) (B) (C) (D) (E) (F) (G)
5/8” or 3/4” $32.05 $34.00 $36.04 $37.48 $38.98 $40.15 1” $48.96 $52.75 $55.92 $58.16 $60.49 $62.30
1 1/2” $91.24 $99.63 $105.61 $109.83 $114.22 $117.65 2” $141.98 $155.88 $165.23 $171.84 $178.71 $184.07 3” $260.38 $287.13 $304.36 $316.53 $329.19 $339.07 4” $429.51 $474.63 $503.11 $523.23 $544.16 $560.48 6” $852.35 $943.39 $999.99 $1,039.99 $1,081.59 $1,114.04 8” $2,036.29 $2,255.89 $2,391.24 $2,486.89 $2,586.37 $2,663.96 10” $3,220.23 $3,568.40 $3,782.50 $3,933.80 $4,091.15 $4,213.88 Bi-monthly Variable Charge ($/hcf)
Current
Volumetric Rate Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 (A) (B) (C) (D) (E) (F) (G)
Single Family & Condo
Tier 1 (0-23 hcf) $2.87 $3.08 $3.26 $3.39 $3.53 $3.64 Tier 2 (24-42 hcf) $2.95 $3.20 $3.39 $3.53 $3.67 $3.78 Tier 3 (43+ hcf) $3.05 $3.37 $3.57 $3.71 $3.86 $3.98 Multi-Family
Tier 1(0-15 hcf) $2.87 $3.07 $3.25 $3.38 $3.52 $3.63 Tier 2 (16-19 hcf) $2.91 $3.14 $3.33 $3.46 $3.60 $3.71 Tier 3 (20+ hcf) $2.96 $3.20 $3.39 $3.53 $3.67 $3.78 Commercial $2.94 $3.20 $3.39 $3.53 $3.67 $3.78
Agriculture $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Construction $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Bi-monthly Private Fire Service Charge
Fire Service Current
Size Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 (A) (B) (C) (D) (E) (F) (G)
2” $2.97 $3.15 $3.28 $3.41 $3.51
3” $8.62 $9.14 $9.51 $9.89 $10.19
4” $39.02 $18.38 $19.48 $20.26 $21.07 $21.70
6” $113.34 $53.38 $56.58 $58.84 $61.19 $63.03
8” $241.53 $113.75 $120.58 $125.40 $130.42 $134.33 10” $434.36 $204.56 $216.83 $225.50 $234.52 $241.56 12” $330.42 $350.25 $364.26 $378.83 $390.19
16” $704.13 $746.38 $776.24 $807.29 $831.51
Elevation Pumping Charge ($/hcf)
Pumping Current
Zone Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 (A) (B) (C) (D) (E) (F) (G)
4 $0.26 $0.22 $0.23 $0.24 $0.25 $0.26
5 $0.68 $0.56 $0.59 $0.61 $0.63 $0.65

PROPOSED SEWER SERVICE RATES
Sewer Rate Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1 2026 Jan1, 2027 Bi-monthly Fixed Rate for Residential Customers
SFR $15.85 $17.41 $18.28 $18.83 $19.21 $19.59
MFR $9.69 $9.42 $9.89 $10.19 $10.39 $10.60
Condo $9.69 $9.42 $9.89 $10.19 $10.39 $10.60
Commerical Volumetric Rate ($/hcf)
Commercial $0.59 $0.61 $0.64 $0.66 $0.68 $0.69
Capital Rate Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1 2026 Jan1, 2027 Bi-monthly Fixed Rate for Residential Customers
SFR $7.15 $7.88 $8.28 $8.53 $8.70 $8.87
MFR $4.37 $4.27 $4.48 $4.61 $4.71 $4.80
Condo $4.37 $4.27 $4.48 $4.61 $4.71 $4.80
Commerical Volumetric Rate ($/hcf)
Commercial $0.27 $0.28 $0.29 $0.30 $0.31 $0.31
PROPOSED WATER SERVICE RATES and CHARGES
388
Water and Sewer Rate Study
Draft Report / January 31, 2023

CITY OF
ORANGE
389
390
445 South Figueroa Street, Suite 1925
Los Angeles, CA 90071
www.raftelis.com
January 31, 2023
Mr. Chris Cash
Director of Public Works
City of Orange
300 East Chapman Avenue
Orange, CA 92866
Subject: Water and Sewer Rate Study Report
Dear Mr. Cash,
Raftelis Financial Consultants, Inc. (Raftelis) is pleased to provide this Water and Sewer Rate Study Report which establishes equitable water and sewer rates based on cost of service principles.

The study’s major objectives include the following:
» Develop financial plans for the water and sewer enterprises that ensure financial sufficiency, meet operations and maintenance (O&M) costs, and ensure sufficient funding for capital improvement plan needs,
» Maintain operating reserve funds, and
» Develop rates that are equitable and fair to customer classes.

This report contains an executive summary, and the body of the report derives the rates for each utility and for each class.

It has been a pleasure working with City staff on this study. Please do not hesitate to contact us if you have questions.

Sincerely,
RAFTELIS FINANCIAL CONSULTANTS, INC.

Steve Gagnon Cleo Koenig Sarah Wingfield
Project Manager (PM) Associate Consultant Associate Consultant 391
4 CITY OF ORANGE
Table of Contents

1. EXECUTIVE SUMMARY................................................................................................................... 1

1.1. Study Background ............................................................................................................................. 1

1.2. Current Rates .................................................................................................................................... 1

1.3. Proposed Water and Sewer Rates .................................................................................................... 2

1.3.1. Proposed Bi-monthly Water Rates .................................................................................................... 2

1.3.2. Proposed Bi-monthly Sewer Rates ................................................................................................... 3

2. INTRODUCTION ............................................................................................................................... 5

2.1. Study Background ............................................................................................................................. 5

2.2. Overview of Proposition 218 ............................................................................................................. 5

2.3. Rate-Setting Methodology ................................................................................................................. 6

3. WATER FINANCIAL PLAN .............................................................................................................. 7

3.1. Inflationary Assumptions ................................................................................................................... 7

3.2. Projected Annual Water Use ............................................................................................................. 7

3.3. Projected Water Accounts ................................................................................................................. 8

3.4. Projected Water O&M Expenses....................................................................................................... 9

3.4.1. Water Supply ..................................................................................................................................... 9

3.5. Water Capital Improvement Plan .................................................................................................... 11

3.6. Water Financial Policies .................................................................................................................. 13

3.7. Proposed Water Financial Plan ....................................................................................................... 13

4. WATER COST OF SERVICE ANALYSIS ...................................................................................... 17

4.1. Water Revenue Requirement .......................................................................................................... 17

4.2. Functionalization .............................................................................................................................. 18

4.3. Allocation of Functionalized Expenses to Cost Components ......................................................... 19

4.4. Water Peaking Factors and Meter Equivalencies ........................................................................... 21

4.5. Allocation of Expenses to Cost Components .................................................................................. 22

4.6. Unit Rate Derivation ........................................................................................................................ 24

5. WATER RATE DERIVATION ......................................................................................................... 25

5.1. Fixed Charges ................................................................................................................................. 25

5.2. Volumetric Rates ............................................................................................................................. 27

5.2.1. Cost Component Definitions ............................................................................................................ 27

5.2.2. Supply Component .......................................................................................................................... 28

5.2.3. Delivery (Base) Component ............................................................................................................ 28

5.2.4. Peaking Component ........................................................................................................................ 28 392

CITY OF ORANGE WATER AND WASTEWATER RATE STUDY REPORT

5.2.5. Total Volumetric Rate ...................................................................................................................... 29

5.2.6. Pass-Through of Wholesale Water Purchase Costs ....................................................................... 29

5.2.7. Pumping Zones 4 & 5 Elevation Rates ........................................................................................... 30

5.3. Rate Summary ................................................................................................................................. 30

6. WATER BILL IMPACTS ................................................................................................................. 32

7. SEWER FINANCIAL PLAN ............................................................................................................ 34

7.1. Inflationary and Other Assumptions ................................................................................................ 34

7.2. Projected Annual Sewer Flow ......................................................................................................... 34

7.3. Projected Sewer Billing Units .......................................................................................................... 34

7.4. Projected Sewer O&M Expenses .................................................................................................... 34

7.5. Sewer Capital Improvement Plan .................................................................................................... 36

7.6. Sewer Financial Policies.................................................................................................................. 37

7.7. Proposed Sewer Financial Plan ...................................................................................................... 37

8. SEWER COST OF SERVICE ANALYSIS ...................................................................................... 42

8.1. Sewer Flow Estimate ....................................................................................................................... 42

8.2. Sewer Operations (220) Revenue Requirement ............................................................................. 42

8.3. Sewer Infrasturcture (520) Revenue Requirement ......................................................................... 43

8.4. Unit Rate Derivation ........................................................................................................................ 43

9. SEWER RATE DERIVATION ......................................................................................................... 45

9.1. Rate Structure.................................................................................................................................. 45

9.2. Rate Derivation ................................................................................................................................ 45

9.2.1. Operations & Maintenance (220) Rates and Charges .................................................................... 45

9.2.2. Sewer Infrastructure (520) Rates and Charges .............................................................................. 45

9.3. Rate Summary ................................................................................................................................. 46

10. SEWER BILL IMPACTS ................................................................................................................. 47 393
6 CITY OF ORANGE
List of Tables
Table 1-1: Current Volumetric Water Rates (Bi-monthly) .................................................................................... 1 Table 1-2: Current Pumping Zone Charges ......................................................................................................... 1 Table 1-3: Current Fixed Charges (Bi-monthly) ................................................................................................... 2 Table 1-4: Current Sewer Rates (Bi-monthly) ...................................................................................................... 2 Table 1-5: Proposed Variable Water Rates (per hcf) ........................................................................................... 3 Table 1-6: Proposed Elevation Pumping Zone Rates (per hcf) ........................................................................... 3 Table 1-7: Proposed Fixed Water Rates .............................................................................................................. 3 Table 1-8: Proposed 220 Sewer Maintenance Rates .......................................................................................... 4 Table 1-9: Proposed 520 Sewer Capital Rates .................................................................................................... 4 Table 3-1: Cost Escalation Factors ...................................................................................................................... 7 Table 3-2: Water Supply Cost Inflationary Factors .............................................................................................. 7 Table 3-3: Projected Annual Water Use (hcf) ...................................................................................................... 8 Table 3-4: Projected Water Account Growth........................................................................................................ 8 Table 3-5: Projected Fire Account Growth ........................................................................................................... 9 Table 3-6: Projected Water O&M Expenses by Expense Category .................................................................... 9 Table 3-7: Water Purchases (Acre-feet) ............................................................................................................ 10 Table 3-8: Wholesale Water Purchase Costs Volumetric Rates ....................................................................... 10 Table 3-9: Wholesale Water Purchase Expenses ............................................................................................ 10 Table 3-10: MWDOC Fixed Charges ................................................................................................................. 11 Table 3-11: Total Water Purchase Costs ........................................................................................................... 11 Table 3-12: Water Capital Improvement Plan .................................................................................................... 12 Table 3-13: Projected Water Operating and Capital Reserves.......................................................................... 13 Table 3-14: Proposed Water Revenue Adjustments.......................................................................................... 14 Table 3-15: Proposed Water Financial Plan ...................................................................................................... 15 Table 4-1: Water Enterprise Revenue Requirement .......................................................................................... 18 Table 4-2: Functionalization of O&M Expenses ................................................................................................. 18 Table 4-3: System Wide Peaking Factors .......................................................................................................... 19 Table 4-4: Allocation of Functionalized O&M to Cost Causation Components ................................................. 20 Table 4-5: Asset Allocation ................................................................................................................................. 20 Table 4-6: Peaking Factors by Customer Class ................................................................................................ 21 Table 4-7: Potable Meter Equivalents ................................................................................................................ 21 Table 4-8: Fire Line Equivalent Meters .............................................................................................................. 22 Table 4-9: Revenue Requirement Allocation to Cost Components ................................................................... 23 Table 4-10: Unit Cost per Cost Component ....................................................................................................... 24 Table 4-11: Cost to Serve Each Class ............................................................................................................... 24 Table 5-1: Meter and Customer Charge Derivation (Bi-monthly) ...................................................................... 25 Table 5-2: Proposed Fixed Meter Charges ........................................................................................................ 26 Table 5-3: Fire Line Charge Derivation .............................................................................................................. 26 Table 5-4: Proposed Fixed Fireline Charges (Bi-monthly) ................................................................................. 27 Table 5-5: Proposed Volumetric Rates .............................................................................................................. 28 Table 5-6: Peaking Factor Derivation ................................................................................................................. 29 Table 5-7: Proposed Volumetric Rates .............................................................................................................. 29 Table 5-8: Zone 4 and 5 Flows ........................................................................................................................... 30 Table 5-9: Allocation of Zone Expenses ............................................................................................................ 30 Table 5-10: Pumping Zone Elevation Rates ...................................................................................................... 30 Table 5-11: Five-Year Fixed Rate Schedule (Bi-monthly) ................................................................................. 31 394

CITY OF ORANGE WATER AND WASTEWATER RATE STUDY REPORT
Table 5-12: Five-Year Volumetric Rate Schedule .............................................................................................. 31 Table 6-1: Water Bill Impacts ............................................................................................................................. 32 Table 7-1: Cost Escalation Factors .................................................................................................................... 34 Table 7-2: Projected Sewer O&M Expenses...................................................................................................... 35 Table 7-3: Sewer Capital Improvement Plan ..................................................................................................... 36 Table 7-4: Sewer Reserve Policies .................................................................................................................... 37 Table 7-5: Proposed Sewer Revenue Adjustments ........................................................................................... 38 Table 7-6: Proposed Sewer Operating Reserve Balances ................................................................................ 39 Table 7-7: Proposed Sewer Capital Reserve Balances ..................................................................................... 39 Table 8-1: Single Family Residential Class Sewer Flow Calculation (hcf) ........................................................ 42 Table 8-2: Sewer Operations (220) Operating Revenue Requirement ............................................................. 43 Table 8-3: Sewer Infrastructure (520) Revenue Requirement .......................................................................... 43 Table 8-4: Sewer Flow Calculation by Customer Class (hcf) ............................................................................ 43 Table 8-5: Operations and Maintenance (220) Cost to Serve Each Class ........................................................ 44 Table 8-6: Sewer Infrastructure (520) Cost to Serve Each Class ..................................................................... 44 Table 9-1: Proposed Rate Structure .................................................................................................................. 45 Table 9-2: Proposed O&M Rates (Fund 220) .................................................................................................... 45 Table 9-3: Proposed Capital Rates .................................................................................................................... 46 Table 9-4: Five-Year O&M Rate Schedule......................................................................................................... 46 Table 9-5: Five-Year Capital Rate Schedule...................................................................................................... 46 Table 10-1: Sewer Bill Impacts ........................................................................................................................... 47 List of Figures
Figure 3-1: Water Enterprise Capital Improvement Plan ................................................................................... 13 Figure 3-2: Projected Reserve Balances ........................................................................................................... 16 Figure 3-3: Proposed vs. Status Quo Water Financial Plan .............................................................................. 16 Figure 6-1: Water Bill Impacts for Single Family and Condo Residential .......................................................... 32 Figure 6-2: Water Bill Impacts for Multi-Family Residential ............................................................................... 33 Figure 6-3: Water Bill Impacts for Commercial .................................................................................................. 33 Figure 6-4: Water Bill Impacts for Agricultural.................................................................................................... 33 Figure 7-1: Sewer Enterprise Capital Improvement Plan................................................................................... 37 Figure 7-2: Sewer Financial Plan ....................................................................................................................... 38 Figure 7-3: Sewer Combined Projected Reserve Balances .............................................................................. 40 Figure 7-4: Sewer Fund 220 Projected Reserves Balances .............................................................................. 40 Figure 7-5: Sewer Fund 520 Projected Reserves Balances .............................................................................. 41 395
8 CITY OF ORANGE
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WATER AND WASTEWATER RATE STUDY REPORT 1

1. Executive Summary

1.1. Study Background
In 2021, the City contracted with Raftelis Financial Consultants (Raftelis) to conduct a Water and Sewer Rate Study (Study). The Study includes a five-year financial plan and cost of service analysis for both water and sewer, as well as the development of water and sewer rates.

The City wishes to establish fair and equitable rates that:
» Meet the City’s fiscal needs in terms of operational expenses and capital investment to maintain the system » Develop fair and equitable rates for all customer classes » Proportionately allocate the costs of providing service in accordance with California Constitution article XIII D, section 6 (commonly referred to as Proposition 218)

1.2. Current Rates
Table 1-1 through 1-3 show the City’s current water rates. Certain customers, at higher elevations, pay an additional pumping charge depending on their pumping zone to cover the extra costs associated with delivering water to higher elevations. Both volumetric and pumping zone rates are charged based on one hundred cubic feet (hcf)1 of use, which is equivalent to 748 gallons. The fixed charges are bi-monthly fixed charges based on meter size. Private Fire Lines are charged a fixed bi-monthly charge based on service size. Currently, only 4” to 10” service lines are charged. Note that these rates are billed to customers on a bi-monthly basis.

Table 1-1: Current Volumetric Water Rates (Bi-monthly)
Line Customer Class Rates
1 Single Family and Condo
2 Tier 1 (0-23 hcf) $2.87
3 Tier 2 (24-42 hcf) $2.95
4 Tier 3 (43+ hcf) $3.05
5 Multi Family
6 Tier 1 (0-15 hcf) $2.87
7 Tier 2 (16-19 hcf) $2.91
8 Tier 3 (20+ hcf) $2.96
9 Commercial $2.93
10 Agriculture $2.94
11 Construction $2.93
Table 1-2: Current Pumping Zone Charges
Line Pumping Zone Rates
1 Zone 4 $0.26
2 Zone 5 $0.68
1 One hcf is approximately 748 gallons
397
2 CITY OF ORANGE
Table 1-3: Current Fixed Charges (Bi-monthly)
Line Meter Size Fixed Charge
1 Service Size (Inches)
2 5/8" or 3/4" $32.05
3 1" $48.96
4 1 1/2" $91.24
5 2" $141.98
6 3" $260.38
7 4" $429.51
8 6" $852.35
9 8" $2,036.29
10 10" $3,220.23
11 12 Private Fire Service Connection Size
13 6" $40.97
14 8” $119.01
15 10” $253.61
16 12” $456.08
Sewer charges consist of: 1) a Sewer Maintenance (220) fee and 2) a Sewer Capital charge (520). Single Family, Multi-Family, and Condo classes pay a fixed charge determined on a per EDU basis; Commercial customers pay a volumetric rate dependent on bi-monthly usage in hundred cubic feet (hcf). This study focuses solely on Sewer Maintenance and Sewer Construction charges. The current rates, effective since July 2021, are shown in Table 1-4 below. Note that these rates are charged on a bi-monthly basis.

Table 1-4: Current Sewer Rates (Bi-monthly)
Line Customer Class Type 220 - Sanitation &
Sewer
520 - Sewer
Construction
1 Single Family Fixed ($/EDU) $15.85 $7.15
2 Multi-Family/Condo Fixed ($/EDU) $9.69 $4.37
3 Commercial Volumetric ($/hcf) $0.59 $0.27

1.3. Proposed Water and Sewer Rates

1.3.1.Proposed Bi-monthly Water Rates
Table 1-5, Table 1-6, and Table 1-7 show the recommended rates for FY 2023-2027 for all customer classes. Private Fire Lines are charged a fixed bi-monthly charge based on service size for connections from 2-inch to 12-inch.

Previously the City only charged 4-inch to 10-inch connections. 398
WATER AND WASTEWATER RATE STUDY REPORT 3
Table 1-5: Proposed Variable Water Rates (per hcf)
Line
Variable Rate
(A)
Current Rate
(B)
Apr 1, 2023
(C)
Jan 1, 2024
(D)
Jan 1, 2025
(E)
Jan 1, 2026
(F)
Jan 1, 2027
(G)
1 Single Family and
Condo
2 Tier 1 (0-23 hcf) $2.87 $3.08 $3.26 $3.39 $3.53 $3.64 3 Tier 2 (24-42 hcf) $2.95 $3.20 $3.39 $3.53 $3.67 $3.78 4 Tier 3 (43+ hcf) $3.05 $3.37 $3.57 $3.71 $3.86 $3.98
5 6 Multi Family
7 Tier 1 (0-15 hcf) $2.87 $3.07 $3.25 $3.38 $3.52 $3.63 8 Tier 2 (16-19 hcf) $2.91 $3.14 $3.33 $3.46 $3.60 $3.71 9 Tier 3 (20+ hcf) $2.96 $3.20 $3.39 $3.53 $3.67 $3.78
10 11 Commercial $2.94 $3.20 $3.39 $3.53 $3.67 $3.78
12 Agriculture $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
13 Construction $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
Table 1-6: Proposed Elevation Pumping Zone Rates (per hcf) Line Pumping Zone Current Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 Zone 4 $0.26 $0.22 $0.23 $0.24 $0.25 $0.26
2 Zone 5 $0.68 $0.56 $0.59 $0.61 $0.63 $0.65
Table 1-7: Proposed Fixed Water Rates
Line Meter Size Current
Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 5/8" or 3/4" $32.05 $34.00 $36.04 $37.48 $38.98 $40.15 2 1" $48.96 $52.75 $55.92 $58.16 $60.49 $62.30
3 1 1/2" $91.24 $99.63 $105.61 $109.83 $114.22 $117.65
4 2" $141.98 $155.88 $165.23 $171.84 $178.71 $184.07
5 3" $260.38 $287.13 $304.36 $316.53 $329.19 $339.07
6 4" $429.51 $474.63 $503.11 $523.23 $544.16 $560.48
7 6" $852.35 $943.39 $999.99 $1,039.99 $1,081.59 $1,114.04 8 8" $2,036.29 $2,255.89 $2,391.24 $2,486.89 $2,586.37 $2,663.96 9 10" $3,220.23 $3,568.40 $3,782.50 $3,933.80 $4,091.15 $4,213.88 10 11 Fire Service Size
12 2" NA $2.50 $2.65 $2.76 $2.87 $2.96
13 3" NA $7.26 $7.70 $8.01 $8.33 $8.58
14 4" $40.97 $15.46 $16.39 $17.05 $17.73 $18.26
15 6" $119.01 $44.91 $47.60 $49.50 $51.48 $53.02
16 8" $253.61 $95.71 $101.45 $105.51 $109.73 $113.02
17 10" $456.08 $172.12 $182.45 $189.75 $197.34 $203.26
18 12" NA $278.02 $294.70 $306.49 $318.75 $328.31
19 16” NA $704.13 $746.38 $776.24 $807.29 $831.51

1.3.2.Proposed Bi-monthly Sewer Rates
Table 1-8 and Table 1-9 show the recommended rates and charges for FY 2023-2027 for all customer classes. 399
4 CITY OF ORANGE
Table 1-8: Proposed 220 Sewer Maintenance Rates
Line Customer Class Type Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 Single Family Fixed $15.85 $17.41 $18.28 $18.83 $19.21 $19.59 2 Multi-
Family/Condo Fixed $9.69 $9.42 $9.89 $10.19 $10.39 $10.60 3 Commercial Volumetric $0.59 $0.61 $0.64 $0.66 $0.68 $0.69 Table 1-9: Proposed 520 Sewer Capital Rates
Line Customer Class Type Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 Single Family Fixed $7.15 $7.88 $8.28 $8.53 $8.70 $8.87 2 Multi-
Family/Condo Fixed $4.37 $4.27 $4.48 $4.61 $4.71 $4.80
3 Commercial Volumetric $0.27 $0.28 $0.29 $0.30 $0.31 $0.31 400
WATER AND WASTEWATER RATE STUDY REPORT 5

2. Introduction

2.1. Study Background
The City of Orange (City) was incorporated in 1888 and hosts a population of approximately 139,900 residents. The City is located within Orange County and covers approximately 38 square miles. It provides water services to approximately 34,800 customers and sewer services to approximately 32,800 customers. The City’s water infrastructure covers the 24.3 square mile water service area, comprised of 12 groundwater wells, seven imported water connections, 14 pump stations, and 14 water reservoirs with 40 million gallons of storage capacity. The City additionally maintains approximately 312 miles of sewer pipeline to collect and transport sewage to two external reclamation plants for treatment. The Orange County Sanitation District owns and manages these plants. In addition, the City shares responsibility with the County for managing its storm drain and flood control facilities.

The City’s last rate adjustment was effective January 1, 2022. In 2021, the City contracted with Raftelis Financial Consultants (Raftelis) to conduct a Water and Sewer Rate Study (Study). The study included five-year financial plans and cost of service analyses as well as development of water and sewer rates.

The City wishes to establish fair and equitable rates that:
» Meet the City’s fiscal needs in terms of operational expenses and capital investment to maintain the system;
» Develop fair and equitable rates for all customer classes; » Proportionately allocate the costs of providing service in accordance with California Constitution article XIII D, section 6 (commonly referred to as Proposition 218).

2.2. Overview of Proposition 218
Article XIII D placed substantive limitations on the use of the revenue collected from property-related fees and on the amount of the fee that may be imposed on each parcel. Additionally, it established procedural requirements for imposing new, or increasing existing, property-related fees. The California Supreme Court has determined that water and sewer service fees are property-related fees. These provisions, as it relates to public water and sewer service, require that a property-related fee must meet the following requirements:

1. A property-related charge (such as water or sewer rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of property.

5. A written notice of the proposed charge shall be mailed to both the customer of record and owner of record of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.

The five substantive requirements in Article XIII D are structured to place limitations on (1) the use of the revenue collected from property-related fees and (2) the allocation of costs recovered by such fees to ensure that they are proportionate to the cost of providing the service attributable to each parcel. 401
6 CITY OF ORANGE
As stated in the American Water Works publication, Manual of Water Supply Practice M1, Principles of Water Rates, Fees, and Charges, 7th Edition (AWWA Manual M1), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Similarly, the Water Environment Federation (WEF) publication, Financing and Charges for Sewer Systems, WEF Manual of Practice No. 27, 4th Edition (WEF Manual 27), states, "the process of identifying the service characteristics of the utility's customers and distributing costs in proportion to their service demands are critical steps in the development of equitable rates and charges." Proposition 218 requires that water rates cannot be “arbitrary and capricious,” meaning that the rate-setting methodology must be sound and that there must be a nexus between the costs and the rates charged in addition to meeting the substantive requirements set forth therein. California Courts have also made clear that, while agencies are authorized to use industry-standard rate-setting methodologies as set forth in AWWA Manual M1 and WEF Manual 27, rates for water and sewer service must meet the substantive requirements of Proposition 218. The rates and charges in this report are designed to comply with Proposition 218.

2.3. Rate-Setting Methodology
Compliance with both industry-standard principles of COS equity and Proposition 218 can be enhanced through a thoughtful and comprehensive rate-setting process that includes the following key steps:

1. Revenue Requirement Determination: The rate-setting process starts by determining the "test-year" (rate- setting year) revenue requirement from rates. The revenue requirement should sufficiently fund the utility’s O&M, debt service, capital expenses, and other identified costs with funding to reserves (positive cash) or using reserves (negative cash), all based on a long-term financial plan.

2. COS Analysis: The annual cost of providing water and sewer service is distributed among customer classes in proportion to their service requirements. A COS analysis involves the following key steps:
» Assignment of Costs to Functions: Examples of water system functions include storage, treatment, and distribution. Examples of sewer system functions include collection, conveyance, and treatment. » Allocation of Costs to Cost Causation Components: Examples of water cost components include base demand, maximum day demand, and maximum hour demand. Examples of sewer cost causation components include flow, biochemical oxygen demand, and suspended solids. » Distribution of Costs to Customer Classes: Costs are distributed to customer classes in proportion to the demands they place on the water and sewer systems.

3. Rate Design/Rate Calculations: Rates do more than simply recover costs. Properly designed rates should support and optimize a blend of various utility objectives, such as promoting cost-based water use efficiency, affordability for essential needs, and revenue stability, among other objectives. 402
WATER AND WASTEWATER RATE STUDY REPORT 7

3. Water Financial Plan

3.1. Inflationary Assumptions
The Study uses Fiscal Year (FY) 2023 as both the budget year and the test year. The test year is a term used to describe the year of revenues and expenses used to establish rates. The study period is from FY 2023 to FY 2027. To ensure that the study reasonably projects future costs, Raftelis makes informed assumptions about inflationary factors for the cost to serve water. Table 3-1 shows the cost escalation factors utilized to project expenses from FY 2023 into future years. Table 3-2 shows the wholesale water purchase cost inflationary factors, as well as the Basin Pumping Percentage (BPP) which is used to determine how much water is pumped from the City’s wells. To calculate water purchase costs, we also used forecasted rates from the Orange County Water District from FY 2023 to FY 2026. Any water that isn’t pumped from the City’s wells is supplied by the Municipal Water District of Orange County (MWDOC), Serrano Water District (SWD), and East Orange County Water District (EOCWD).

Table 3-1: Cost Escalation Factors
Line Inflation Category FY 2024 FY 2025 FY 2026 FY 2027 1 General 5% 4% 3% 3%
2 Personnel 3% 3% 3% 3%
3 Construction 5% 4% 3% 3%
4 Electricity Inflation 5% 5% 5% 5%
5 Fleet Services 5% 5% 5% 5%
6 Non-Escalation 0% 0% 0% 0%
7 Interest Earnings 1% 1% 1% 1%
8 Miscellaneous Revenue 1% 1% 1% 1%
Table 3-2: Water Supply Cost Inflationary Factors
Line Inflation Category FY 2024 FY 2025 FY 2026 FY 2027 1 MWD/MWDOC Retail Meter Charge 5% 7% 6% 6%
2 MWD/MWDOC Tier 1 Volumetric Rates 5% 7% 6% 6%
3 MWD/MWDOC Choice Program Charges 5% 7% 6% 6%
4 MWD/MWDOC Capacity Charge 6% 7% 6% 6%
5 MWD/MWDOC RTS Charge 8% 7% 6% 6%
6 7 OCWD Basin Pumping Percentage (BPP) 77% 77% 77% 77%

3.2. Projected Annual Water Use
City staff provided total annual water use data for each customer class for FY 2020 through FY 2022. Raftelis worked closely with City staff to project water use over the study period. Water use projections depend on two key assumptions: new connection growth and water demand per connection. Since the City is mostly built-out, this study assumes no growth in accounts or water use. Table 3-3 shows projected billed consumption by customer class over the study period. Total water use is shown in hundred cubic feet (hcf). 403
8 CITY OF ORANGE
Table 3-3: Projected Annual Water Use (hcf)
Line Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Residential - Single Family and Condo
2 Tier 1 (0-23 hcf) 3,064,475 3,064,475 3,064,475 3,064,475 3,064,475 3 Tier 2 (24-42 hcf) 1,264,262 1,264,262 1,264,262 1,264,262 1,264,262 4 Tier 3 (43+ hcf) 1,026,987 1,026,987 1,026,987 1,026,987 1,026,987 5 Subtotal Residential - Single Family and Condo 5,355,724 5,355,724 5,355,724 5,355,724 5,355,724 6 7 Residential - Multi Family
8 Tier 1 (0-15 hcf) 1,201,137 1,201,137 1,201,137 1,201,137 1,201,137 9 Tier 2 (16-19 hcf) 135,540 135,540 135,540 135,540 135,540 10 Tier 3 (20+ hcf) 326,907 326,907 326,907 326,907 326,907 11 Subtotal Residential - Multi Family 1,663,584 1,663,584 1,663,584 1,663,584 1,663,584 12 13 Commercial 3,126,390 3,126,390 3,126,390 3,126,390 3,126,390 14 Agricultural 52,250 52,250 52,250 52,250 52,250 15 Municipal 222,679 222,679 222,679 222,679 222,679 16 Bike Trails 3,557 3,557 3,557 3,557 3,557 17 Subtotal - Nonresidential 3,404,876 3,404,876 3,404,876 3,404,876 3,404,876 18 19 Total 10,424,184 10,424,184 10,424,184 10,424,184 10,424,184

3.3. Projected Water Accounts
City staff provided the number of accounts by meter size for FY 2021 through FY 2022. Table 3-4 shows that this study assumes no growth in the number of accounts over the study period.

Table 3-4: Projected Water Account Growth
Line Meter Size FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 5/8" or 3/4" 26,614 26,614 26,614 26,614 26,614
2 1" 5,952 5,952 5,952 5,952 5,952
3 1 1/2" 750 750 750 750 750
4 2" 1,218 1,218 1,218 1,218 1,218
5 3" 168 168 168 168 168
6 4" 89 89 89 89 89
7 6" 32 32 32 32 32
8 8" 9 9 9 9 9
9 10" 6 6 6 6 6
10 Total Accounts 34,837 34,837 34,837 34,837 34,837
This process was repeated for private fire line accounts, as shown in Table 3-5. There was no account growth predicted for private fire lines for the study period.
404
WATER AND WASTEWATER RATE STUDY REPORT 9
Table 3-5: Projected Fire Account Growth
Line Service Size FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 5/8" or 3/4" 3 3 3 3 3
2 1" 22 22 22 22 22
3 1 1/2" 10 10 10 10 10
4 2" 170 170 170 170 170
5 3" 1 1 1 1 1
6 4" 164 164 164 164 164
7 6" 456 456 456 456 456
8 8" 193 193 193 193 193
9 10" 14 14 14 14 14
10 Total Fire Accounts 1,033 1,033 1,033 1,033 1,033

3.4. Projected Water O&M Expenses
Table 3-6 shows a summary of water O&M expenses. O&M expenditures include the cost of water supply, treatment, and distribution. The projected increases in O&M expenses are shown in Table 3-6 below. FY 2023 O&M expenses were provided by City staff and future years were projected based on inflationary assumptions shown in Table 3-1. Water supply costs were inflated based on assumptions in Table 3-2.

Table 3-6: Projected Water O&M Expenses by Expense Category Line Expense Category FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Non-Departmental $860,000 $885,971 $907,787 $924,804 $942,331 2 Utility Billing $1,194,832 $1,238,494 $1,279,753 $1,318,146 $1,357,690 3 Fleet Services $280,000 $294,000 $308,700 $324,135 $340,342 4 Subtotal $2,334,832 $2,418,465 $2,496,240 $2,567,084 $2,640,362 5 6 Water Supply (Water Production) $21,953,639 $19,741,272 $20,976,585 $22,435,599 $23,768,666 7 Water Production Miscellaneous
Costs $9,998,727 $11,231,978 $11,628,950 $11,985,988 $12,355,513 8 Pumping Electricity (Zones 4 & 5) $167,721 $176,107 $184,912 $194,158 $203,866 9 Conservation $35,000 $36,750 $38,220 $39,367 $40,548
10 Subtotal Water Production $32,155,087 $31,186,107 $32,828,667 $34,655,111 $36,368,592 11 12 Water Distribution $5,210,605 $5,417,426 $5,606,462 $5,774,656 $5,947,896 13 Total Expenses $39,700,524 $39,021,998 $40,931,370 $42,996,852 $44,956,850

3.4.1.Water Supply
The City primarily sources its water from the Orange County Water District (OCWD). The propostion of water that is supplied by OCWD is also known as the Basin Pumping Percentage (BPP). The BPP is 77%. However, the City was not able to pump 77% due to PFAS contamination. The City purchases its remaining water from the Municipal Water District of Orange County (MWDOC), the Serrano Water District (SWD), and the East Orange County Water District (EOCWD). The projected water purchases by source are shown below in Table 3-7 in acre-feet. 405
10 CITY OF ORANGE
Table 3-7: Water Purchases (Acre-feet)
Line Supply Source FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 OCWD 15,169 AF 20,138 AF 20,138 AF 20,138 AF 20,138 AF 2 MWDOC 9,856 AF 4,887 AF 4,887 AF 4,887 AF 4,887 AF
3 EOCWD 605 AF 605 AF 605 AF 605 AF 605 AF
4 SWD 523 AF 523 AF 523 AF 523 AF 523 AF
5 Total 26,154 AF 26,154 AF 26,154 AF 26,154 AF 26,154 AF Table 3-8 provides the projected wholesale volumetric rates (at the time the study was finalized) for the three wholesale water sources and shows if the charges are on a calendar year or fiscal year basis. Fiscal Year (FY) rates are effective from July-June of each year. Calendar Year (CY) rates are effective from January-December.

Table 3-8: Wholesale Water Purchase Costs Volumetric Rates Line Effective
Period
FY/CY
2023
FY/CY
2024
FY/CY
2025
FY/CY
2026
FY/CY
2027
1 OCWD FY $540 $566 $605 $649 $687
2 MWDOC CY $1,209 $1,256 $1,344 $1,425 $1,510
3 EOCWD CY $1,088 $1,256 $1,344 $1,425 $1,510
4 SWD CY $1,088 $1,130 $1,210 $1,282 $1,359
Multiplying the quantities in Table 3-7 by the rates in Table 3-8 results in the water purchase costs listed below in Table 3-9. For OCWD, this is a direct multiplication of all use in the fiscal year with the matching fiscal year price.

However, calculations involving calendar year rates must account for the mid-fiscal year rate change. Raftelis determined that 60% of water purchases occur from July to December and 40% occur in January to June of the fiscal year. Therefore, 60% of water use is multiplied by the previous calendar year’s rates, and 40% is multiplied by the calendar year matching the fiscal year (current fiscal year).

For example, the below equation provides the calculation for FY 2023 MWDOC water purchases:
60% × 𝐹𝑌 2023 𝐴𝑐𝑟𝑒 𝐹𝑒𝑒𝑡 × 𝐶𝑌 2022 𝑀𝑊𝐷𝑂𝐶 𝑅𝑎𝑡𝑒 + 40% × 𝐹𝑌 2023 𝐴𝑐𝑟𝑒 𝐹𝑒𝑒𝑡 × 𝐶𝑌 2023 𝑀𝑊𝐷𝑂𝐶 𝑅𝑎𝑡𝑒 = 𝑇𝑜𝑡𝑎𝑙 𝐹𝑌 2023 𝑀𝑊𝐷𝑂𝐶 𝑉𝑜𝑙𝑢𝑚𝑒𝑡𝑟𝑖𝑐 𝑊𝑎𝑡𝑒𝑟 𝑆𝑢𝑝𝑝𝑙𝑦 𝐶𝑜𝑠𝑡
60% × 9,856 × $1,143 + 40% × 9,856 × $1,209 = $13,013,317 The totals derived from these calculations are shown below.

Table 3-9: Wholesale Water Purchase Expenses
Line FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
1 OCWD $8,191,338 $11,398,304 $12,183,700 $13,069,787 $13,840,905 2 MWDOC $11,525,749 $6,000,160 $6,309,834 $6,725,252 $7,128,767 3 EOCWD $637,114 $743,257 $781,617 $833,076 $883,061
4 SWD $550,514 $578,007 $607,839 $647,857 $686,728
5 Total $20,904,715 $18,719,728 $19,882,990 $21,275,972 $22,539,461 406
WATER AND WASTEWATER RATE STUDY REPORT 11
MWDOC assesses the fixed charges shown in Table 3-10. These charges are on a fiscal year schedule, with the exception of the Capacity Charge, which is on a calendar year. The City of Orange pays a MWDOC retail meter charge (Line 2) on all of its customers’ meters (Line 1), resulting in a total retail meter charge shown in Line 3.

Table 3-10: MWDOC Fixed Charges
Line CY 2022 FY/CY
2023
FY/CY
2024
FY/CY
2025
FY/CY
2026
FY/CY
2027
1 Number of Meters 34,837 34,837 34,837 34,837 34,837 2 Retail Meter Charge $13.65 $14.33 $15.34 $16.26 $17.23 3 Total Retail Meter Charge FY $475,532 $499,308 $534,260 $566,315 $600,294 4 5 MWDOC Choice Program
Charge FY $39,669 $41,652 $44,568 $47,242 $50,077
6 MWDOC RTS Charge FY $356,815 $385,360 $412,335 $437,075 $463,300 7 MWDOC Capacity Charge CY $189,207 $164,610 $174,487 $186,701 $197,903 $209,777 8 Total MWDOC Fixed
Charges $1,048,924 $1,095,869 $1,171,757 $1,242,935 $1,317,511 The City pays the MWDOC retail meter charge, and the Readiness-to-Serve (RTS) Charge per fiscal year. The fiscal year Capacity charge incorporated into the rates is calculated by assessing the CY 2022 charge on the first six months of the fiscal year, and the CY 2023 charge on the final six months. This calculation is shown below.

𝐶𝑌 2022 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝐶ℎ𝑎𝑟𝑔𝑒 × ൬ 6 𝑚𝑜𝑛𝑡ℎ𝑠
12 𝑚𝑜𝑛𝑡ℎ𝑠 𝑝𝑒𝑟 𝐹𝑌൰ + 𝐶𝑌 2023 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝐶ℎ𝑎𝑟𝑔𝑒 × ൬ 6 𝑚𝑜𝑛𝑡ℎ𝑠 12 𝑚𝑜𝑛𝑡ℎ𝑠 𝑝𝑒𝑟 𝐹𝑌൰
= 𝐹𝑌 2023 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝐶ℎ𝑎𝑟𝑔𝑒
The resulting total water supply purchase costs are shown below in Table 3-11.

Table 3-11: Total Water Purchase Costs
Line FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
1 OCWD $8,191,338 $11,398,304 $12,183,700 $13,069,787 $13,840,905 2 MWDOC $11,525,749 $6,000,160 $6,309,834 $6,725,252 $7,128,767 3 MWDOC
Fixed Charges $1,048,924 $1,095,869 $1,171,757 $1,242,935 $1,317,511 4 EOCWD $637,114 $743,257 $781,617 $833,076 $883,061
5 SWD $550,514 $578,007 $607,839 $647,857 $686,728
6 Total $21,953,639 $19,815,598 $21,054,747 $22,518,907 $23,856,972

3.5. Water Capital Improvement Plan
Table 3-12 (next page) shows the City’s planned capital improvement plan (CIP) for the Water Enterprise. The City plans to fund all of its CIP projects with cash reserves generated from rates (i.e. pay-as-you-go). Figure 3-1 shows a summary of total Water Enterprise CIP expenditures by funding source over the study period. 407
12 CITY OF ORANGE
Table 3-12: Water Capital Improvement Plan
Line Expense FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Security Improvements $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 2 Meter Replacement Program $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 3 Well 28 Construction $1,200,000
4 Well Rehabilitation $125,000 $100,000 $150,000 $150,000 $150,000 $150,000 5 Lower Serrano Pump Station $500,000 $1,600,000
6 Exterior Cathodic Protection Systems $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 7 Reservoir Recoating $50,000 $850,000
8 Reservoir 3A Construction $300,000 $2,000,000
9 Reservoir 2A Site Remediation $1,000,000
10 Pipeline Renewal Projects $1,500,000 $1,500,000 $1,500,000 $1,500,000 $2,000,000 $2,000,000 11 Water Plant Telemetry - SCADA $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 12 Emergency Generators $100,000 $250,000 $250,000
13 Well 29 $400,000 $2,500,000 $3,000,000
14 Well 30
15 South yard NPDES Improvement $1,044,700
16 Water Rate Study $100,000
17 Reservoir 8A Pump Station $150,000
18 Reservoir 4A Construction $150,000
19 Reservoir 5 Pump Station Replacement $150,000
20 Cambridge St. Improvements $200,000
21 Walnut St. Improvements $500,000
22 Work Order Management System $151,600
23 FY 2021 Capital Carryover $7,419,246
24 Subtotal $13,015,546 $1,875,000 $4,675,000 $5,275,000 $5,775,000 $5,725,000 25 Inflation 0% 7% 5% 4% 3% 3%
26 Grand Total $13,015,546 $2,006,250 $5,252,363 $6,163,521 $6,950,173 $7,096,699 408
WATER AND WASTEWATER RATE STUDY REPORT 13
Figure 3-1: Water Enterprise Capital Improvement Plan

3.6. Water Financial Policies
The City has an operating reserve, which provides funds to meet ongoing cash flow requirements related to operating expenses. The current operating reserve target is equal to 25% of budgeted operating expenses. The City does not officially have a capital reserve target, however as a best practice Raftelis modeled a typical year’s capital expenditures equal to 100% of the average CIP across 5 years. These two reserves are added together to get the total target reserves on line 4. Table 3-13 below shows the projected reserve targets based on the established reserve policies. Increases in these values are based on the escalation of operating costs, which were inflated based on the escalation factors shown in Table 3-1 and Table 3-2. The difference between projected target reserves and projected ending reserves are shown in line 5.

Table 3-13: Projected Water Operating and Capital Reserves Line Item FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Ending
Reserves $7,017,780 $2,932,180 $4,558,101 $6,828,569 $9,594,931 $13,309,687 2 Capital
Reserves Target $5,510,884 $5,493,801 $6,602,944 $7,108,176 $7,238,570 $7,266,609 3 O&M Reserves
Target $9,579,294 $9,925,131 $9,755,500 $10,232,842 $10,749,213 $11,239,212 4 Total Target $15,090,178 $15,418,932 $16,358,444 $17,341,019 $17,987,783 $18,505,821 5 Difference ($) ($8,072,398) ($12,486,752) ($11,800,342) ($10,512,450) ($8,392,851) ($5,196,134)

3.7. Proposed Water Financial Plan
To adequately fund operating and capital expenditures while maintaining sufficient reserve funding, the City must increase its revenues from water rates. Raftelis worked closely with City staff to identify revenue adjustments and the resulting financial plan. The selected proposed annual revenue adjustments are shown in Table 3-14. Revenue adjustments represent annual percent increases in total rate revenue (if the rates are applied for a full fiscal year) relative to rate revenue generated by the prior year’s water rates. $-
$2
$4
$6
$8
$10
$12
$14
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Capital Financing Plan
Rate Funded CIP
409
14 CITY OF ORANGE
Table 3-14: Proposed Water Revenue Adjustments
Line Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Effective Date April 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 2 Rate Revenue
Increases 7.0% 6.0% 4.0% 4.0% 3.0%
Table 3-15 shows projected net cashflow and reserves under the proposed financial plan. Beginning balances are shown on line 4. Sources of funds include rate and non-rate revenues, revenue adjustments (resulting from the revenue increases described in Table 3-14), and interest. Use of funds include O&M expenses (from Table 3-6) and CIP expenditures (from Table 3-12). All ending balances are projected values. 410
WATER AND WASTEWATER RATE STUDY REPORT 15
Table 3-15: Proposed Water Financial Plan
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Financing Strategy
2 Rate Revenue Increases 7.0% 6.0% 4.0% 4.0% 3.0%
3 4 Beginning Balance $2,863,132 $2,932,180 $4,558,101 $6,828,569 $9,594,931 5 6 Summary of Cash Flows
7 Revenues
8 Revenue from Existing Rates $40,664,070 $40,664,070 $40,664,070 $40,664,070 $40,664,070 9 Revenue from Rate Increases $711,621 $4,151,802 $6,379,542 $8,261,287 $9,968,877 10 Total Rate Revenue $41,375,692 $44,815,872 $47,043,612 $48,925,357 $50,632,948 11 12 Other Revenue
13 "New" Pass Through Revenue $0 $693,808 $1,929,121 $3,388,135 $4,721,201 14 Other Rate Revenue $172,809 $174,537 $176,283 $178,045 $179,826 15 Non-Rate Revenue $213,529 $213,541 $213,554 $213,566 $213,579 16 Interest Revenue $13,792 $2,524 $2,789 $8,284 $20,750 17 Total Other Revenue $400,131 $1,084,410 $2,321,746 $3,788,030 $5,135,356 18 19 Expenditures
20 O&M Costs $39,700,524 $39,021,998 $40,931,370 $42,996,852 $44,956,850 21 22 Rate Funded Capital Improvements $2,006,250 $5,252,363 $6,163,521 $6,950,173 $7,096,699 23 Total Expenditures $41,706,774 $44,274,361 $47,094,891 $49,947,025 $52,053,548 24 25 Net Operating Cash Flow $69,048 $1,625,921 $2,270,468 $2,766,362 $3,714,756 26 Ending Cash Reserves $2,932,180 $4,558,101 $6,828,569 $9,594,931 $13,309,687 411
16 CITY OF ORANGE
Figure 3-2 shows the projected reserve balances under the proposed financial plan. The bars indicate the projected ending balance. The operating reserve target is shown as the green line and the total reserve target is represented by the blue line. Under the proposed financial plan, reserve balances are expected to be below the operating reserve target until FY 2027. The City accepts this projection to minimize customer water bill impacts.

Figure 3-2: Projected Reserve Balances
Figure 3-3 compares expenses (shown by the stacked bars) with proposed revenues and current revenue (shown by the dash lines). Net cashflow – or total revenues less total expenses – is shown as a light gray portion of the stacked bar. Revenue adjustments are required to generate sufficient revenue to recover O&M and CIP-related expenditures over the study period.

Figure 3-3: Proposed vs. Status Quo Water Financial Plan $-
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Fund Reserve Balances
Ending Balance Operating Reserve Target Total Reserve Target $(20)
$(10)
$-
$10
$20
$30
$40
$50
$60
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Financial Plan
O&M Expenses Rate Funded CIP Net Cash Flow
Current Revenue Proposed Revenue
412
WATER AND WASTEWATER RATE STUDY REPORT 17

4. Water Cost of Service
Analysis
A cost of service analysis distributes a utility’s revenue requirements (costs) to each customer class. The first step in a cost of service analysis is to determine the revenue requirement (costs) that need to be recovered. The next step is to functionalize O&M costs into the following functions:

1. Water Purchases

2. Production

3. Pumping Electricity

4. Pumping Zone 4

5. Pumping Zone 5

6. Customer Service

7. Distribution

8. General Administration

9. Conservation
The functionalization of costs allows us to better allocate them to the cost causation components. The cost causation components include:

1. Supply

2. Base (average)

3. Peaking (maximum day and maximum hour)

4. Fire

5. Meter Service

6. Customer Service

7. General and Administrative

8. Pumping Zone 4

9. Pumping Zone 5
Peaking costs consist of maximum day and maximum hour demand components. The maximum day demand is the maximum amount of water used in a single day in a year. The maximum hour demand is the maximum use in an hour on the maximum use day. Different facilities, such as distribution and storage facilities, as well as the O&M costs associated with those facilities, are designed to meet the peaking demands of customers. Therefore, peaking costs include the O&M and capital costs associated with meeting peak customer demand. This method is consistent with the AWWA M1 Manual, and widely used in the water industry to perform cost of service analyses.

4.1. Water Revenue Requirement
Table 4-1 shows the total revenue required from rates, shown in line 18. This is the amount that the rates, derived in Section 5, are designed to collect.

Line 7 through 11 subtract revenue from other sources such as interest revenue and other non-rate revenues. Line 14 is an adjustment for the FY 2023 cash balance and Line 18 is an adjustment to annualize the rates since the rates are 413
18 CITY OF ORANGE
being implemented in April (3 months left in the fiscal year), it is necessary to annualize this additional revenue so that rates reflect an annual revenue requirement. The final rate revenue requirement is shown on Line 18.

Table 4-1: Water Enterprise Revenue Requirement
Line
[A]
FY 2023 Categories
[B]
Operating
[C]
Capital
[D]
Total
[E]
1 Revenue Requirements
2 Water Supply Expenses $21,953,639 $21,953,639
3 All Other O&M Expenses $17,746,885 $17,746,885
4 Rate Funded Capital Projects $2,006,250 $2,006,250
5 Total Revenue Requirements $39,700,524 $2,006,250 $41,706,774 6 7 Less: Revenue Offsets
8 Other Rate Revenue $172,809 $172,809
9 Non-Rate Revenue $213,529 $213,529
10 Interest Revenue $13,792 $13,792
11 Total Revenue Offsets $400,131 $400,131
12 13 Less: Adjustments
14 Adjustment for Cash Balance -$69,048 -$69,048
15 Adjustment for Mid-Year Rate Adjustment -$2,134,864 -$2,134,864 16 Total Adjustments -$2,203,912 -$2,203,912
17 18 Revenue Requirement from Rates (Line 7-Line 14-Line 19) $39,300,394 $4,210,162 $43,510,555

4.2. Functionalization
Table 4-2 shows the functionalization of the water enterprise’s O&M expenses during the Test Year. The Test Year is used to perform a cost of service study and develop rates, then future year rates are adjusted according to the revenue adjustments shown in Table 3-14. Functionalizing O&M expenses allows Raftelis to follow the principles of rate setting theory in which the end goal is to allocate the enterprise’s O&M expenses to cost causation components which in turn form the basis for the water rates. This is further explained in Section 5.

Table 4-2: Functionalization of O&M Expenses
Line O&M Allocation ($) Allocation ($) Allocation (%)
1 Water Purchases $21,953,639 55.3%
2 Water Production $9,998,727 25.2%
3 Pumping Zone Electricity $167,721 0.4%
4 Distribution $5,210,605 13.1%
5 Customer Service $1,194,832 3.0%
6 General & Admin $1,140,000 2.9%
7 Total O&M Expenses $39,700,524 100%
414
WATER AND WASTEWATER RATE STUDY REPORT 19

4.3. Allocation of Functionalized Expenses to Cost
Components
After functionalizing expenses, the next step is to allocate expenses to cost causation components. We do so using the system-wide peaking factors shown in Table 4-3 which derive the cost component allocation bases (i.e., percentages) shown in Columns D-F. Functionalized expenses are then allocated to the cost components using these allocation bases. As shown in Line 1 of Table 4-3, base use is assigned 100% to Base – meaning costs allocated using “base” are entirely associated with meeting average day demand. Collectively the Maximum Day and Hour cost components are known as Peaking Costs. These allocation bases are used to assign the functionalized costs in Table 4-2 to the cost components. The Max Day percentages for base is equal to 1/1.93 (52%) and for max day is equal to (1.93-1)/1.93 (48%).

Table 4-3: System Wide Peaking Factors
Line
[A]
Allocation Basis
[B]
Peaking Factors
[C]
Base
[D]
Max Day
[E]
Max Hour
[F]
Total
[G]
1 Base 1.00 100% 100%
2 Max Day 1.93 52% 48% 100%
3 Max Hour 2.72 37% 34% 29% 100%
Table 4-4 allocates the functionalized O&M expenses identified in Table 4-2 to the cost components. The functionalized expenses are allocated to the cost components according to industry standards based on the nature of the water treatment function. The top portion of Table 4-3 shows the basis (%) used to allocate the functionalized expenses to the cost causation components. The bottom half of the table then applies these percentages to the total O&M from the expenses shown in Table 4-2 to calculate each cost component. The result of allocating the functionalized costs to each cost component are shown in Line 19 and converted to percentages in Line 20. This resulting percent spread across the cost causation components will be used to allocate the operating revenue requirement for the enterprise.
415
20 CITY OF ORANGE
Table 4-4: Allocation of Functionalized O&M to Cost Causation Components Line O&M Function Allocation
Basis Supply Base Max Day Max
Hour Zone 4 Zone 5 Meter Customer Gen &
Admin TOTAL
1 O&M Allocation (%)
2 Water Purchases Base 100% 100.000%
3 Water Production Max Day 52% 48% 0% 100.000%
4 Pumping Electricity Max Day 52% 48% 0% 0% 100.000%
5 Pumping Zone Electricity Pumping Zone 52% 48% 100.000% 6 Distribution Max Hour 35% 33% 28% 1.5% 1.5% 1.6% 100.000% 7 Customer Service Customer
Service 100% 100.000%
8 General & Admin 100% General 100% 100.000%
9 Conservation 100% General 100% 100.000%
10 11 O&M Allocation ($)
12 Water Purchases Base $21,953,639 $0 $0 $0 $0 $0 $0 $0 $0 $21,953,639 13 Water Production Max Day $0 $5,180,688 $4,818,039 $0 $0 $0 $0 $0 $0 $9,998,727 14 Pumping Zone Electricity Pumping Zone $0 $0 $0 $0 $87,941 $79,779 $0 $0 $0 $167,721 15 Distribution Max Hour $0 $1,827,926 $1,699,971 $1,444,062 $78,159 $78,159 $82,328 $0 $0 $5,210,605 16 Customer Service Customer
Service $0 $0 $0 $0 $0 $0 $0 $1,194,832 $0 $1,194,832
17 General & Admin 100% General $0 $0 $0 $0 $0 $0 $0 $0 $1,140,000 $1,140,000 18 Conservation 100% General $0 $0 $0 $0 $0 $0 $0 $0 $35,000 $35,000 19 Total O&M Expenses $21,953,639 $7,008,614 $6,518,011 $1,444,062 $166,101 $157,938 $82,328 $1,194,832 $1,175,000 $39,700,524 20 Percent Allocation 55.3% 17.7% 16.4% 3.6% 0.4% 0.4% 0.2% 3.0% 3.0% 100.000% Raftelis similarly allocated the asset valuation to cost components to derive their percentage allocation. This distribution is shown in Table 4-5. Raftelis used the asset allocation to assign interest revenue offsets to the cost components.

Table 4-5: Asset Allocation
Capital Supply Base Max Day Max
Hour Zone 4 Zone 5 Meter Customer Gen. &
Admin
Asset
Summary
Functionalized Asset
Percentages 11.1% 38.6% 35.9% 2.9% 0.2% 0.2% 0.0% 0.0% 11.2% 100.0% 416
WATER AND WASTEWATER RATE STUDY REPORT 21

4.4. Water Peaking Factors and Meter Equivalencies
To properly allocate costs to each customer class, Raftelis calculated peaking factors. Table 4-6 shows the peaking factors for each customer class. Peaking factors were calculated as the average yearly bi-monthly use divided by the maximum bi-monthly use in a given bi-monthly period.

Table 4-6: Peaking Factors by Customer Class
Line Customer Class
Bi-Monthly
Peaking Factor
1 Single Family Residential
2 Tier 1 1.08
3 Tier 2 1.34
4 Tier 3 1.72
5 6 Multi-Family Residential
7 Tier 1 1.05
8 Tier 2 1.22
9 Tier 3 1.35
10 11 Commercial 1.34
12 Agriculture 1.57
13 Municipal (& Bike Trails) 1.34
Raftelis also calculated the number of 5/8” or ¾” equivalent meter units (EMU), shown below in Table 4-7.

Equivalent meter units account for the potential flow through larger meters and equate this flow to the total flow through the smallest meter, in this case the 5/8 or ¾”-inch meter on line 1. Equivalent meter units are calculated by multiplying the number of meters (column E) by the American Water Works Association (AWWA) capacity ratios in Column D to yield equivalent meters in column F.

Table 4-7: Potable Meter Equivalents
Line
[A]
Meter Size
(inches)
[B]
AWWA Operating
Capacity
(gpm)
[C]
Ratio
[D]
Number of
Meters
[E]
Total Equivalent Meter
Units
[F=D*E]
1 5/8" or 3/4" 30 1.00 26,614 26,614
2 1" 50 1.67 5,952 9,921
3 1 1/2" 100 3.33 750 2,499
4 2" 160 5.33 1,218 6,498
5 3" 300 10.00 168 1,684
6 4" 500 16.67 89 1,478
7 6" 1,000 33.33 32 1,051
8 8" 2,400 80.00 9 709
9 10" 3,800 126.67 6 749
10 Total 34,837 51,202
To allocate fire protection costs between public and private fire connections, the potential flow through all public and private fire connections is calculated. The potential flow through private fire connections is derived in Table 4-8. 417
22 CITY OF ORANGE
Fire Demand ratios, shown in Column C were calculated using the Hazen-Williams equation for flow, where potential flow is equal to the diameter of the connection raised to the power of 2.63.

Table 4-8: Fire Line Equivalent Meters
Line
[A]
Private Fire
Connection Size
[B]
Fire
Demand
Ratio
[C=B2.63]
Number
of Lines
[D]
Private Fire Potential
Demand
[E=C*D]
1 3/4" 0.47 3 1.4
2 1" 1.00 22 22.0
3 1.5" 2.90 10 29.0
4 2" 6.19 170 1,052.3
5 3" 17.98 1 18.0
6 4" 38.32 164 6,284.4
7 6" 111.31 456 50,757.8
8 8" 237.21 193 45,780.9
9 10" 426.58 14 5,972.1
10 12” 689.04 0 0.0
11 16” 1,468.37 0 0.0
12 Total 1,030 109,916

4.5. Allocation of Expenses to Cost Components
The O&M revenue requirement calculated in Table 4-1 is then distributed to the cost components based on the allocations determined in Table 4-4, Line 20. Table 4-9, Line 1 distributes the total O&M requirement before adjustments and line 2 distributes the capital revenue requirement.

Line 5 reallocates the general expenses to the other cost components based on the proportion of each to the their total value. Lines 7, 8 and 9 reallocate public fire, private fire, and peaking costs to other cost components in columns I and J. A portion of the Peaking costs (Columns E and F in Line 5) as well as Base costs (Column D) are allocated to the Meter Maintenance & Capacity component. Peaking costs are shown as max day and max hour costs in Table 4-9. A portion of capacity (peaking) related costs were allocated to the meter service component so that it can be collected through the fixed bi-monthly charge and allow the City to reach its fixed revenue goals. Allocating extra capacity costs by meter size is a common way to provide greater revenue stability, especially in light of decreasing revenues during a drought or other reasons for sales declines. Stated in another way – it is quite common to reallocate peaking costs (max day and max hour) to be collected through the service charge.

Line 10 shows the final revenue requirement distribution to the cost components. The Fire, Meter Service, and Customer cost components (Column I, J, and K) will be recovered through fixed charges by meter size. The Pumping Zone 4 and 5 costs, shown in Column G and H, are the basis for the volumetric-based elevation rates.

The remaining cost components are recovered through the water volumetric rate. These rates are derived in Section

5. 418
WATER AND WASTEWATER RATE STUDY REPORT 23
Table 4-9: Revenue Requirement Allocation to Cost Components Line
[A]
Allocation to Cost
Components
[B]
Supply
[C]
Base
[D]
Max Day
[E]
Max Hour
[F]
Pumping
Zone 4
[G]
Pumping
Zone 5
[H]
Meter
Maintenance
& Capacity
[I]
Customer
Service
[J]
Private Fire
Protection
[K]
Gen. &
Admin
[L]
Total
[M]
1 Operating Expenses $21,732,375 $6,937,976 $6,452,318 $1,429,507 $164,426 $156,347 $81,498 $1,182,790 $1,163,158 $39,300,394 2 Capital Expenses $467,623 $1,624,022 $1,510,341 $122,255 $6,509 $6,509 $0 $0 $472,903 $4,210,162 3 Total Cost of
Service $22,199,998 $8,561,998 $7,962,658 $1,551,762 $170,936 $162,856 $81,498 $1,182,790 $1,636,060 $43,510,555 4 5 Allocation of
General Cost $867,367 $334,522 $311,106 $60,628 $6,679 $6,363 $3,184 $46,212 -$1,636,060 6 Subtotal $23,067,365 $8,896,520 $8,273,764 $1,612,390 $177,614 $169,219 $84,682 $1,229,002 $0 $43,510,555 7 Allocation of Public
Fire to Meter -$300,133 -$271,149 $571,281
8 Allocation to
Private Fire -$166,072 -$150,034 $316,106
9 Allocation Peak or
Base Cost to Meter
Capacity
-$2,135,165 -$5,074,914 -$774,285 $7,984,363
10 Adjusted Cost of
Service $23,067,365 $6,761,355 $2,732,646 $416,923 $177,614 $169,219 $8,640,327 $1,229,002 $316,106 $0 $43,510,555 419
24 CITY OF ORANGE

4.6. Unit Rate Derivation
The cost-by-cost component is used to develop unit rates, shown in Table 4-10, by dividing the revenue requirement for each cost component by the units of service.

Table 4-10: Unit Cost per Cost Component
Line
[A]
Cost Component
[B]
Revenue Requirement
[C]
Units of
Service
[D]
Unit
[E]
Unit Cost
[F=C/D]
1 Supply $23,067,365 10,424,184 hcf $2.21
2 Base (Delivery) $6,761,355 10,424,184 hcf $0.65
3 Max Day $2,732,646 26,865 hcf/day $101.72
4 Max Hour $416,923 22,687 hcf/hour $18.38
5 Pumping Zone 4-Power &
Maintenance $177,614 794,032 hcf
(Zone 4 & 5) $0.22
6 Pumping Zone 5-Power &
Maintenance $169,219 302,106 hcf
(Zone 5) $0.56
7 Conservation $0 10,424,184 hcf $0.00
8 Meter Maintenance & Capacity $8,640,327 51,202 Equivalent Meters $168.75 9 Customer Service $1,229,002 34,837 No. of Customers $35.28 10 Private Fire Protection $316,106 827 Private Fire Potential Demand $382.23
11 Total $43,510,555
The unit costs in Table 4-10 for each are multiplied by the units of service for each class. These costs are then added together for each class to develop the final total cost to serve each class, as shown in Table 4-11. Note that the total cost to serve each class is the same as the revenue requirement in Table 4-1.

Table 4-11: Cost to Serve Each Class
Line
[A]
Customer Class
[B]
Variable Cost
Components
[C]
Fixed Cost
Components
[D]
Total Cost to Serve
[E=C+D]
1 Single Family Residential $6,189,471 $6,189,471
2 Tier 1 $9,576,358 $9,576,358
3 Tier 2 $4,106,139 $4,106,139
4 Tier 3 $3,518,879 $3,518,879
5 6 Multi-Family Residential $1,201,698 $1,201,698
7 Tier 1 $3,683,119 $3,683,119
8 Tier 2 $425,845 $425,845
9 Tier 3 $1,046,741 $1,046,741
10 11 Commercial $10,069,163 $2,304,573 $12,373,736
12 Agriculture $175,925 $12,606 $188,532
13 Municipal (& Bike Trails) $722,952 $160,980 $883,932 14 Private Fire $316,106 $316,106
15 Total $33,325,121 $10,185,434 $43,510,555
420
WATER AND WASTEWATER RATE STUDY REPORT 25

5. Water Rate Derivation

5.1. Fixed Charges
There are two cost components that comprise the bi-monthly service charge: meter service and customer service.

This charge recognizes the fact that the City incurs fixed costs related to maintaining meters and billing customers.

It also collects a portion of capacity and base costs through the service charge to attain revenue stability. The derivation of these components for 5/8” or ¾” meters is shown below in Table 5-1.

Table 5-1: Meter and Customer Charge Derivation (Bi-monthly) Line
1 Meter Service Charge Component
2 Meter Cost $8,640,327
3 Total EMUs 51,202
4 Yearly Meter Charge $168.75
5 Bi-Monthly Meter Service Charge $28.13
6 7 Customer Service Component
8 Customer Service Cost $1,229,002
9 Total Accounts 34,837
10 Bills per year $209,024.88
11 Bi-Monthly Customer Service
Charge $5.88
The meter service charge component recovers two types of costs: 1) costs associated with maintaining and servicing meters (meter service component) and 2) capacity (also known as peaking) costs. Both costs increase as the meter size increases and are proportional to the AWWA hydraulic capacity shown in column C of Table 4-7. This assumes that the potential capacity (peaking) demand is proportional to the potential flow through each meter size as established by the AWWA hydraulic capacity. The ratios shown in column D (of Table 4-7) are the ratio of potential flow through each meter size compared to the flow through a 5/8” or ¾” meter. The 5/8” or ¾” meter is used as the base since it is the smallest and most numerous meter size. Larger meters have the potential to demand more peak capacity.

The customer component derivation, shown in the bottom portion of Table 5-1, recovers costs associated with meter reading, customer billing and collection, as well as answering customer calls. These costs are the same for all meter sizes as it costs the same to bill a small meter as it does a larger meter. These two components are added together for each meter size, resulting in the rates in Table 5-2.
421
26 CITY OF ORANGE
Table 5-2: Proposed Fixed Meter Charges
Line
[A]
Meter Size
[B]
Equivalent
Meter
Ratio
[C]
Number of
Meters
[D]
Equivalent
Meter
[E=C*D]
Meter Service
[F=C*$28.13]
Customer
Service
[G]
Proposed
Bi-Monthly
Fixed
Charge
[H=F+G]
1 Unit Cost $28.13 $5.88 $34.00
2 5/8" or 3/4" 1.00 26,614 26,614 $28.13 $5.88 $34.00
3 1" 1.67 5,952 9,921 $46.88 $5.88 $52.75
4 1 1/2" 3.33 750 2,499 $93.75 $5.88 $99.63
5 2" 5.33 1,218 6,498 $150.00 $5.88 $155.88
6 3" 10.00 168 1,684 $281.25 $5.88 $287.13
7 4" 16.67 89 1,478 $468.75 $5.88 $474.63
8 6" 33.33 32 1,051 $937.51 $5.88 $943.39
9 8" 80.00 9 709 $2,250.01 $5.88 $2,255.89
10 10" 126.67 6 749 $3,562.52 $5.88 $3,568.40
11 Total 34,837 51,202
Fireline Charges (per equivalent demand unit) are calculated in Table 5-3. The total private fire costs are shown in column K in Table 4-9. The equivalent fire demands are calculated in Table 4-8. However, this results in a yearly rate. To develop a bi-monthly rate, the charge for each service size is divided by the number of bills per year, resulting in the proposed Fireline rates in Table 5-4.

Table 5-3: Fire Line Charge Derivation
Line Fire Charge Component
1 Fire Service Line Cost $316,106
2 Yearly Equivalent Demand 109,865
3 Yearly Fire Service Charge $2.88
422
WATER AND WASTEWATER RATE STUDY REPORT 27
Table 5-4: Proposed Fixed Fireline Charges (Bi-monthly) Line
[A]
Meter Size
[B]
Number of
Meters
[C]
Potential
Demand
Ratio
[D]
Equivalent
Demand
[E]
Yearly Rate
[F=$2.88*D]
Proposed
Rate
[G=F/6]
1 Unit Rate $2.88
2 3 5/8" or 3/4" 3 0.5 1.4 $1.36 $0.23
4 1" 22 1.0 22.0 $2.91 $0.48
5 1 1/2" 10 2.9 29.0 $8.44 $1.41
6 2" 170 6.2 1,052.3 $17.81 $2.97
7 3" 1 18.0 18.0 $51.74 $8.62
8 4" 164 38.3 6,284.4 $110.25 $18.38
9 6" 456 111.3 50,757.8 $320.26 $53.38
10 8" 193 237.2 45,780.9 $682.49 $113.75
11 10" 14 426.6 5,972.1 $1,227.36 $204.56
12 12" 0 689.0 - $1,982.52 $330.42
13 16" 0 1468.4 - $4,224.81 $704.13
14 Total 1,033 109,865

5.2. Volumetric Rates
The total volumetric rate is the summation of unit rates for each cost component: Supply, Delivery, Peaking (Max day and hour), and Pumping. There are separate unit rates for pumping to zones 4 and zone 5 to account for the extra costs associated with pumping to higher elevation. Each unit rate will be derived and added together to get the total volumetric rate for each tier and customer class. Each cost component is defined below.

5.2.1.Cost Component Definitions
The volumetric rates for each class and tier are derived by summing the unit rates ($ / hcf) for:

1. Water Supply

2. Delivery

3. Peaking

4. Conservation

5. Pumping (for zones 4 and 5)
Water Supply costs are costs associated with obtaining and treating water to make it ready for delivery from each City source.

Delivery costs are the operating and capital costs associated with delivering water to all customers through the distribution system (pipelines and storage reservoirs) at a constant average rate of use – also known as serving customers under average daily demand conditions. Therefore, delivery costs are spread over all units of water which results in an equal delivery unit cost for all classes and tiers. 423
28 CITY OF ORANGE
Peaking costs, or extra-capacity costs, represent costs incurred to meet customer peak demands in excess of base use (or in excess of average daily demand). Peaking costs are the sum of max day and max hour demands in Table 4-9.

Some of the peaking costs are collected through the service charge and the remainder through the volumetric rate.

Table 4-9, in line 9, shows the max day and max hour amounts that are reallocated to the meter component – so that they can be collected through the service charge. For the portion of peaking costs collected through the volumetric rate, peaking costs are distributed to each tier and class using peaking factors derived from customer use data shown in Table 4-6. For the portion of peaking costs collected through the fixed charge, AWWA hydraulic capacity factors are used to distribute peaking costs to the various meter sizes – as derived in Table 5-1.

5.2.2.Supply Component
The supply component is the same for all customers. The supply component recovers costs associated with obtaining and treating water to ready it for transmission and distribution. Total water purchased is shown below, which includes water lost in the system before being delivered. We calculate the supply rate by dividing the supply costs by the total water sold in hcf, as shown in Table 4-10 and Table 5-5 below.

Table 5-5: Proposed Volumetric Rates
Line Source FY 2023
1 Total Purchased Water 11,392,551 hcf
2 Total Supply Costs $23,067,365
3 Total Sold Water 10,424,184 hcf
4 Supply Unit Rate $2.21

5.2.3.Delivery (Base) Component
The Delivery component represents costs associated with delivering water to customers at a constant average rate of use, i.e. servicing customers under average daily demand conditions. Therefore, delivery costs- shown in Table 4-9, column D, line 10 are spread over all units of water irrespective of customer class or tier as calculated in Table 4-10, line 2.

5.2.4.Peaking Component
The Peaking rate component recovers costs associated with Max Day and Max Hour (Peaking) cost components in Table 4-9. Peaking costs are distributed to each tier and class using peaking factors derived from customer data.

Raftelis calculated the peaking factors by dividing the maximum bimonthly use of a class or tier by the average bimonthly use for that class or tier. These peaking factors are shown in Table 4-6. The derivation of the peaking rate by class and tier are shown below in Table 5-6.
424
WATER AND WASTEWATER RATE STUDY REPORT 29
Table 5-6: Peaking Factor Derivation
Line
[A]
Customer Class
[B]
Use (hcf)
[C]
Peaking
Factor
[D]
Use
Weighted by
Peaking
Factor
[E=C*D]
Percentage
of
Weighted
Use
[F]
Peaking Costs
($)
[G=F*$3,149,568]
Peaking
Unit
Cost
($ / hcf)
1 Single Family &
Condo
2 Tier 1 3,064,475 1.08 3,309,633 25% $663,237 $0.22 3 Tier 2 1,264,262 1.34 1,694,111 13% $424,311 $0.34 4 Tier 3 1,026,987 1.72 1,766,418 13% $523,582 $0.51 5 Multi-Family
6 Tier 1 1,201,137 1.05 1,266,939 10% $246,074 $0.20 7 Tier 2 135,540 1.22 165,284 1% $37,999 $0.28
8 Tier 3 326,907 1.35 441,507 3% $111,299 $0.34
9 Commercial 3,352,626 1.34 4,481,207 34% $1,120,021 $0.33 10 Agriculture 52,250 1.57 82,032 1% $23,045 $0.44
11 Total 10,424,184 13,207,131 100% $3,149,568 $0.24

5.2.5.Total Volumetric Rate
The total water volumetric rate, excluding the elevation pumping zone charges, combines each of the components derived above and is shown in column G.

Table 5-7: Proposed Volumetric Rates
Line
[A]
Customer Classes
[B]
Tier
Breakpoints
[C]
Supply
Component
($ / hcf)
[D]
Delivery
Component
($/ hcf)
[E]
Peaking
Component
[F]
Proposed
Total Rate
($/ hcf)
[G=D+E+F]
1 Single Family & Condo
2 Tier 1 (0-23 hcf) 0-23 $2.21 $0.65 $0.22 $3.08
3 Tier 2 (24-42 hcf) 24-42 $2.21 $0.65 $0.34 $3.20
4 Tier 3 (43+ hcf) 43+ $2.21 $0.65 $0.51 $3.37
5 Multi-Family
6 Tier 1 (0-15 hcf) 0-15 $2.21 $0.65 $0.20 $3.07
7 Tier 2 (16-19 hcf) 16-19 $2.21 $0.65 $0.28 $3.14
8 Tier 3 (20+ hcf) 20+ $2.21 $0.65 $0.34 $3.20
9 10 Commercial $2.21 $0.65 $0.33 $3.20
11 Agriculture $2.21 $0.65 $0.44 $3.30
12 Construction $2.21 $0.65 $0.44 $3.30

5.2.6.Pass-Through of Wholesale Water Purchase Costs
The City will continue to pass through wholesale charges levied on the City by its wholesale water agencies. This is allowed under Section 53756 of the California Government Code. As discussed in Section 3.4.1, the City has four 425
30 CITY OF ORANGE
water sources, including the pumped water from Orange County Water District (OCWD). The Municipal Water District of Orange County (MWDOC) sells water from the Metropolitan Water District to its wholesale customers which includes the City of Orange. The City also purchases water from the Serrano Water District and East Orange County Water District. Most charges are assessed on a calendar year (CY), while other charges assessed on a fiscal year (FY). The City will assess a pass-through rate which will be based on its estimated wholesaler water purchase costs at the start of the fiscal year.

5.2.7.Pumping Zones 4 & 5 Elevation Rates
Customers in Zones 4 and 5 reside at higher elevations and will pay an elevation rate. This rate recovers the costs of pumping water to these higher elevation zones as well as the maintenance costs of the associated pumping facilities. Since Zone 5 flows through Zone 4, the Zone 5 flow is added to the Zone 4 flows as shown in Table 5-8.

Table 5-8: Zone 4 and 5 Flows
Line Zone 4
Flow (hcf)
Zone 5 Flow
(hcf)
Total Flow Through
Zone
(hcf)
Total Flow Through
Zone
(%)
1 Zone 4 491,926 302,106 794,032 72% 2 Zone 5 302,106 302,106 28%
3 Total 1,096,137 100%
The maintenance expense is allocated between the two zones based on the percent of total flow through each zone as identified above in Table 5-8. The total pumping expenses are taken from Table 4-9.

Table 5-9: Allocation of Zone Expenses
Line
Total Flow
Through Zone
(%)
Expense Allocation
1 Zone 4 72% $177,614
2 Zone 5 28% $169,219
3 Total 100% $346,833
Table 5-10 shows the derivation of the pumping zone elevation rates, where the total expense allocated to each zone is divided by the water flowing through each respective zone to yield the final proposed rate.

Table 5-10: Pumping Zone Elevation Rates
Line
[A]
Zone
[B]
Total Expense
[C]
Flow (hcf)
[D]
Elevation
Rate
[E=C/D]
1 Zone 4 $177,614 794,032 $0.22
2 Zone 5 $169,219 302,106 $0.56

5.3. Rate Summary
Table 5-11 and Table 5-12 show the recommended five-year rate schedules for fixed and volumetric rates for each customer class. The rates shown for April 1, 2023 are based on the cost of service described above. The rates from Jan 1, 2024 to Jan 1, 2027 increase based on proposed revenue increases in Table 3-14. 426
WATER AND WASTEWATER RATE STUDY REPORT 31
Table 5-11: Five-Year Fixed Rate Schedule (Bi-monthly)
Line Meter Size Current
Rate Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 5/8" or 3/4" $32.05 $34.00 $36.04 $37.48 $38.98 $40.15 2 1" $48.96 $52.75 $55.92 $58.16 $60.49 $62.30
3 1 1/2" $91.24 $99.63 $105.61 $109.83 $114.22 $117.65
4 2" $141.98 $155.88 $165.23 $171.84 $178.71 $184.07
5 3" $260.38 $287.13 $304.36 $316.53 $329.19 $339.07
6 4" $429.51 $474.63 $503.11 $523.23 $544.16 $560.48
7 6" $852.35 $943.39 $999.99 $1,039.99 $1,081.59 $1,114.04 8 8" $2,036.29 $2,255.89 $2,391.24 $2,486.89 $2,586.37 $2,663.96 9 10" $3,220.23 $3,568.40 $3,782.50 $3,933.80 $4,091.15 $4,213.88 10 11 Fire Service Size
12 2" $0.00 $2.97 $3.15 $3.28 $3.41 $3.51
13 3" $0.00 $8.62 $9.14 $9.51 $9.89 $10.19
14 4" $40.97 $18.38 $19.48 $20.26 $21.07 $21.70
15 6" $119.01 $53.38 $56.58 $58.84 $61.19 $63.03
16 8" $253.61 $113.75 $120.58 $125.40 $130.42 $134.33
17 10" $456.08 $204.56 $216.83 $225.50 $234.52 $241.56
18 12" $0.00 $330.42 $350.25 $364.26 $378.83 $390.19
19 16” $0.00 $704.13 $746.38 $776.24 $807.29 $831.51
Table 5-12: Five-Year Volumetric Rate Schedule
Line Customer Class Current Rate FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Single Family & Condo
2 Tier 1 $2.87 $3.08 $3.26 $3.39 $3.53 $3.64
3 Tier 2 $2.95 $3.20 $3.39 $3.53 $3.67 $3.78
4 Tier 3 $3.05 $3.37 $3.57 $3.71 $3.86 $3.98
5 Multi-Family
6 Tier 1 $2.87 $3.07 $3.25 $3.38 $3.52 $3.63
7 Tier 2 $2.91 $3.14 $3.33 $3.46 $3.60 $3.71
8 Tier 3 $2.96 $3.20 $3.39 $3.53 $3.67 $3.78
9 Commercial $2.94 $3.20 $3.39 $3.53 $3.67 $3.78
10 Agriculture $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
11 Construction $2.93 $3.30 $3.50 $3.64 $3.79 $3.90
427
32 CITY OF ORANGE

6. Water Bill Impacts
This section compares current customer bills to proposed customer bills under the new rates. Current water rates for a typical single-family home include a:

1. Fixed meter charge, and

2. A volumetric charge based on a customer’s water use.

The current and proposed bills are based on both of these charges. The bill impacts assumes the most common meter size for each class and the average demand for an account. Table 6-1 shows the bill impact by class. The difference between the current and proposed rates, for different use points, are also shown in Figure 6-1 through Figure 6-4.

Table 6-1: Water Bill Impacts
Line
[A]
Customer Class
[B]
Meter Size
[C]
Average
Water Use
(hcf)
[D]
Proposed
Bill
[E]
Current Bill
[F]
Difference
($)
[G]
Difference
(%)
[H]
1 Single Family &
Condo 3/4” 32 $133.57 $124.61 $8.96 7.2%
2 Multi-Family
(assuming 4 units) 1” 95 $348.08 $324.16 $23.92 7.4%
3 Commercial 2” 198 $788.60 $724.10 $64.50 8.9%
4 Agricultural (billed
monthly) 2" 143 $626.96 $559.92 $67.04 12.0%
Figure 6-1: Water Bill Impacts for Single Family and Condo Residential $95.19
$121.66 $124.61
$151.16
$101.72
$130.37 $133.57
$162.35
$-
$50
$100
$150
$200
Winter Low 22 HCF Median 31 HCF Annual Average 32 HCF Summer High 41 HCF Bi-Monthly Bill ($)
Bi-Monthly Use
Single Family and Condo Residential
Current Bi-Monthly Bill Proposed Bi-Monthly Bill
428
WATER AND WASTEWATER RATE STUDY REPORT 33
Figure 6-2: Water Bill Impacts for Multi-Family Residential Figure 6-3: Water Bill Impacts for Commercial
Figure 6-4: Water Bill Impacts for Agricultural
$259.04
$327.12 $324.16 $353.76
$277.64
$351.29 $348.08
$380.10
$-
$100
$200
$300
$400
Winter Low 73 HCF Median 96 HCF Annual Average 95 HCF Summer High 105 HCF Bi-Monthly Bill ($)
Bi-Monthly Use
Multi-Family Residential
Current Bi-Monthly Bill Proposed Bi-Monthly Bill
$400.70
$644.72 $724.10
$1,132.76
$437.09
$702.32 $788.60
$1,232.79
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Winter Low 88 HCF Median 171 HCF Annual Average 198
HCF
Summer High 337 HCF
Bi-Monthly Bill ($)
Bi-Monthly Use
Commercial
Current Bi-Monthly Bill Proposed Bi-Monthly Bill
$440.46
$582.53 $559.92
$755.38
$492.31
$652.45 $626.96
$847.27
$-
$200
$400
$600
$800
$1,000
Winter Low 101.87 HCF Median 150.36 HCF Annual Average 142.64 HCF
Summer High 209.35
HCF
Monthly Bill ($)
Monthly Use
Agriculture
Current Monthly Bill Proposed Monthly Bill
429
34 CITY OF ORANGE

7. Sewer Financial Plan

7.1. Inflationary and Other Assumptions
As with the water study, The Sewer study uses Fiscal Year (FY) 2023 as both the budget year and the test year. The test year is a term used to describe the year’s expenses with which we set rates. The Study period is FY 2023-FY 2027. To ensure that the study reasonably projects future costs, Raftelis makes informed assumptions about inflationary factors to apply to the sewer budget. Table 7-1 shows the cost escalation factors used to project expenses with FY 2023 as the base year.

Table 7-1: Cost Escalation Factors
Line Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 General Budget 5.0% 4.0% 3.0% 3.0%
2 Personnel Budget 3.0% 3.0% 3.0% 3.0%
3 Construction Budget 5.0% 4.0% 3.0% 3.0%
4 Electricity Budget 5.0% 5.0% 5.0% 5.0%
5 No Escalation Budget 0.0% 0.0% 0.0% 0.0%
6 Interest Earnings Budget 1.0% 1.0% 1.0% 1.0%
7 Miscellaneous Revenue Budget 1.0% 1.0% 1.0% 1.0%

7.2. Projected Annual Sewer Flow
City staff provided total annual sewer flow data for each customer class for FY 2018-19 through FY 2020-21. Raftelis worked closely with City staff to develop sewer billed consumption projections over the study period. Sewer demand projections depend on two key assumptions: new connection growth and sewer discharge per connection. Since the City is mostly built-out, and due to water saving devices/appliances, we assumed no changes to flow during the study period.

7.3. Projected Sewer Billing Units
Sewer connection growth projections are necessary to estimate sewer rate revenues over the study period. City staff provided the number of billing units by customer class for FY 2018-19 through FY 2020-21. Since the City is mostly built-out, we assumed no growth in connections over the study period.

7.4. Projected Sewer O&M Expenses
Table 7-2 shows a summary of Sewer Enterprise O&M expenses over the study period. O&M expenditures include the cost of operating and maintaining the sewer collection system. The projected increases in O&M expenses are shown in Table 7-2 below. FY 2023 expenses were provided by City staff and Raftelis projected future expenses by inflating the FY 2023 budget with the inflationary assumptions shown in Table 7-1. 430
WATER AND WASTEWATER RATE STUDY REPORT 35
Table 7-2: Projected Sewer O&M Expenses
Line O&M Expenses FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 220.5001 General
Administration and
Support $324,162 $340,370 $353,985 $364,604 $375,543
2 220.5022 Refuse &
Sanitation Services $2,702,586 $2,800,326 $2,893,099 $2,979,925 $3,069,357 3 220.5024 Surface Water
Quality $913,075 $947,807 $980,095 $1,009,498 $1,039,783 4 220.6000 Community
Development $117,944 $121,482 $125,127 $128,881 $132,747 5 Total $4,057,767 $4,209,985 $4,352,306 $4,482,908 $4,617,430 6 7 Annual % Change 3.8% 3.4% 3.0% 3.0%
431
36 CITY OF ORANGE

7.5. Sewer Capital Improvement Plan
Table 7-3 shows the City’s planned capital improvement plan (CIP) for the Sewer Enterprise. The City plans to fund all of its CIP projects with cash reserves generated from rates (i.e. pay-as-you-go). Figure 7-1 shows a summary of total Sewer Enterprise CIP expenditures by funding source over the study period.

Table 7-3: Sewer Capital Improvement Plan
Line CIP Expenses FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Fund 220 - Sanitation Maintenance
Projects
2 3 12982--Corp Yard Reno. $650,000 $650,000
4 15509--Sewer Cleaning and Video $450,000 $500,000 $500,000 $500,000 $500,000 5 20430--Storm Drain Imp. $500,000 $500,000 $500,000 $500,000 $500,000 6 Subtotal $1,600,000 $1,650,000 $1,000,000 $1,000,000 $1,000,000 7 8 Fund 520 - Sewer Infrastructure Projects
9 CIP Carryover
10 15508--Sewer Line Repl./Maint. $2,255,000 $2,367,750 $2,438,783 $2,511,946 $2,587,304 11 30168--Walnut Ave Infra. Imp. $428,982 $- $- $- $- 12 Subtotal $2,683,982 $2,367,750 $2,438,783 $2,511,946 $2,587,304 13 2140 Grand Total $4,283,982 $4,017,750 $3,438,783 $3,511,946 $3,587,304 15 Annual % Change -6.2% -14.4% 2.1% 2.1%
432
WATER AND WASTEWATER RATE STUDY REPORT 37
Figure 7-1: Sewer Enterprise Capital Improvement Plan

7.6. Sewer Financial Policies
The City currently maintains two funds in its Sewer Enterprise: a 220 Fund for Sewer Maintenance and Operation and a 520 Fund for Sewer Infrastructure.

The 220 Fund has an operating target and a capital target. Operating reserves provide funding to meet ongoing cash flow requirements related to operating expenses. The current operating reserve target for the City’s 220 Sewer Maintenance Fund is equal to 25 percent of annual O&M expenses (for the Sewer Maintenance Fund). Capital reserves for this fund are to finance maintenance related projects. This study models the capital reserve target as 100% of typical 1-year maintenance related capital expenditures. The overall target for the 220 Sewer Maintenance Fund is a combination of these two values.

The Sewer Infrastructure reserve target for this study is 100% of typical 1-year capital expenditures relevant to capital improvements.

Table 7-4 summarizes the operating and capital reserve targets described above.

Table 7-4: Sewer Reserve Policies
Line Reserve Target Policy
1 Fund 220 Operating 25% of typical O&M expenditures
2 Capital 100% of typical 1-yr capital expenditures
3 Fund 520 Capital 100% of typical 1-yr capital expenditures

7.7. Proposed Sewer Financial Plan
The Sewer Enterprise must increase its revenues from sewer rates over the study period to adequately fund its operating and capital expenditures while also maintaining sufficient reserve funding. Raftelis worked closely with City staff to identify financial plan options for the City Council’s consideration. The selected proposed annual revenue adjustments are shown in Table 7-5. Revenue adjustments represent annual percent increases in total rate revenue, if applied for the full fiscal year, relative to rate revenue generated by the prior year’s sewer rates. $3.0
$3.2
$3.4
$3.6
$3.8
$4.0
$4.2
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Capital Financing Plan
Rate Funded
433
38 CITY OF ORANGE
Table 7-5: Proposed Sewer Revenue Adjustments
Line Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Effective Date January 1, 2023 January 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 2 Rate Revenue
Increases 5.0% 5.0% 3.0% 2.0% 2.0%
Figure 7-2 shows the financial plan for the Sewer Enterprise. Revenues under the current rates and status quo rates are represented by the red and gray dashed lines, respectively. Expenses including O&M expenses, and CIP are represented by the various stacked bars. Net cashflow – or total revenues less total expenses – is also shown by the light gray. Revenue adjustments are required to generate sufficient revenue to recover O&M and CIP-related expenditures over the study period.

Figure 7-2: Sewer Financial Plan
Table 7-6 and Table 7-7 show projected expenses and cash balances for each of its operating and capital reserves under the proposed financial plan. Sources of funds include rate and non-rate revenues, revenue adjustments (resulting from the revenue increases described in Table 7-5), and interest. Use of funds include O&M expenses (from Table 7-2) and CIP expenditures (from Table 7-3). The FY 2022-23 beginning balance reflects actual Sewer Enterprise reserve balances for each reserve as of July 1, 2022. All ending balances are projected values. $(2.0)
$-
$2.0
$4.0
$6.0
$8.0
$10.0
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Financial Plan
O&M Expenses Rate Funded CIP Net Cash Flow
Current Revenue Proposed Revenue
434
WATER AND WASTEWATER RATE STUDY REPORT 39
Table 7-6: Proposed Sewer Operating Reserve Balances
Line Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Operating Reserve Beginning
Balance
$5,636,886 $2,700,000 $2,141,792 $1,687,253 $1,948,672 $2,219,127 2 4 O&M Expenses
5 220.5001 General Admin & Support $225,305 $324,162 $340,370 $353,985 $364,604 $375,543 6 220.5022 Refuse & Sanitation
Services
$3,016,164 $2,702,586 $2,800,326 $2,893,099 $2,979,925 $3,069,357 7 220.5024 Surface Water Quality $897,834 $913,075 $947,807 $980,095 $1,009,498 $1,039,783 8 220.6032 Code Enforcement $113,138 $117,944 $121,482 $125,127 $128,881 $132,747 9 Total O&M Expenses $4,252,441 $4,057,767 $4,209,985 $4,352,306 $4,482,908 $4,617,430 10 11 Less: Non-Rate Revenues $ 201,856 $ 187,240 $ 183,833 $ 184,520 $ 188,830 $ 193,108 12 Revenue Required from Rates $4,050,585 $3,870,527 $4,026,153 $4,167,786 $4,294,078 $4,424,322 13 14 Ending Balance $ 1,674,535 $ 2,141,792 $ 1,687,253 $ 1,948,672 $ 2,219,127 $ 2,470,630 15 Total Fund Target $ 1,063,110 $ 1,014,442 $ 1,052,496 $ 1,088,076 $ 1,120,727 $ 1,154,357 Table 7-7: Proposed Sewer Capital Reserve Balances
Line Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Total Capital Reserve Beginning
Balance $3,818,439 $1,848,600 $1,729,431 $1,749,540 $1,792,996 $1,825,006 2 4 520 Rate-Funded Capital Projects
5 CIP Carryover $1,647,974
6 15508--Sewer Line Repl/Maint $2,200,000 $2,255,000 $2,367,750 $2,438,783 $2,511,946 $2,587,304 7 30166--Cambridge St Infrstrct Imp $236,000 $0 $0 $0 $0 $0 8 30168--Walnut Ave Infrstrct Imp $127,000 $428,982 $0 $0 $0 $0 9 Total Rate-Funded Expenses $4,210,974 $2,683,982 $2,367,750 $2,438,783 $2,511,946 $2,587,304 10 11 Less: Non-Rate Revenues $44,172 $25,378 $23,378 $23,755 $24,192 $24,449 12 Revenue Required from Rates $4,166,802 $2,658,604 $2,344,372 $2,415,028 $2,487,754 $2,562,855 13 14 Ending Balance $1,848,600 $1,729,431 $1,749,540 $1,792,996 $1,825,006 $1,832,311 15 Total Fund Target $2,513,092 $2,517,953 $2,484,747 $2,514,788 $2,530,622 $2,531,823 435
40 CITY OF ORANGE
Figure 7-3 shows the combined projected reserve balances for the entire Sewer Enterprise under the proposed financial plan. The bars indicate the projected ending balance. The total reserve target is represented by the blue line.

By the end of the study period, the Sewer Enterprise’s reserves are projected to begin approaching the overall reserve target under the proposed rate increases.

Figure 7-3: Sewer Combined Projected Reserve Balances
Figure 7-4 and Figure 7-5 show the individual projected reserve balances (gray bars) for the 220 Sewer Maintenance and 520 Sewer Infrastructure Funds, respectively. In addition, target reserve balances for each fund are shown as blue and orange lines in the graph, respectively. The combined operating and capital target is shown as a dotted blue line. The 220 fund reaches its reserve targets by the end of the study and the 520 fund is at approximately 70 to 75% of its target.

Figure 7-4: Sewer Fund 220 Projected Reserves Balances
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Total Reserves Balances
Total Reserves Total Reserve Target
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Fund 220 Reserves Balances
Fund 220 Sewer Maintenance Fund 220 Operating Reserve Target Fund 220 Op & Cap Target
436
WATER AND WASTEWATER RATE STUDY REPORT 41
Figure 7-5: Sewer Fund 520 Projected Reserves Balances
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Millions
Fund 520 Reserves Balances
Fund 520 Sewer Infrastructure Fund 520 Capital Reserve Target 437
42 CITY OF ORANGE

8.Sewer Cost of Service
Analysis

8.1. Sewer Flow Estimate
To properly allocate costs to each customer class, Raftelis estimated the sewer flow for each class. For Single Family residential customers, Raftelis assumed that January/February winter water use approximates indoor water use, which returns to the sewer system, since outdoor irrigation is at its lowest during the winter. Table 8-1 shows the calculation of the return to sewer (RTS) percentage for the Single Family residential class.

Table 8-1: Single Family Residential Class Sewer Flow Calculation (hcf) Line Customer Class
Lowest Month
Water Use
Annualized
Lowest Month
Water Use
Total Actual Flow Selected Return to
Sewer %
1 Single Family 688,380 4,130,280 5,241,277 79%
Raftelis assumed that 100% of water use returns to the sewer as wastewater flow for the Multi-Family Residential, Condominium, and Commercial classes. In the previous 2015 rate study conducted by Raftelis, water use data suggested that outdoor water use for these classes is minimal since annualized winter use for these classes nearly equaled their actual yearly use - thus their return to sewer factor was nearly 100%. Staff and Raftelis decided to maintain the return to sewer calculations from the prior study since the pandemic severely affected commercial water use and temporarily altered commercial sewer flow. It is common practice to assume 90-100% return to sewer for commercial users.

8.2. Sewer Operations (220) Revenue Requirement
Table 8-2 shows the sewer enterprise revenue requirement to fund sewer operations – shown in line 16. Line 4 shows the total revenue requirement. Line 9 shows the total revenue from other sources which is subtracted. Line 12 is an adjustment for the yearly cash balance and line 13 is an adjustment to annualize the revenue since the rates will be implement in April with two months left in the fiscal year. We must annualize this revenue to calculate rates that will recover a full year’s revenue. This is added to the revenue requirement since we subtract these adjusmtents. The total revenue required from rates is shown in line 16. This is the amount the sewer maintenance (220) rates are designed to collect.
438
WATER AND WASTEWATER RATE STUDY REPORT 43
Table 8-2: Sewer Operations (220) Operating Revenue Requirement Line Fund 220 Sewer Maintenance Fund Operating Capital Total 1 Revenue Requirement
2 220 O&M Expenses $4,057,767 $4,057,767
3 Rate Funded Capital Projects $1,600,000 $1,600,000
4 Total Revenue Requirement $4,057,767 $1,600,000 $5,657,767 5 6 Revenue Offsets
7 Miscellaneous/Non-Rate Revenues $163,151 $163,151
8 Interest Income $24,089 $24,089
9 Total Revenue Offsets $187,240 $187,240
10 11 Adjustments
12 Adjustment for Cash Balance $558,208 $558,208
13 Adjustment for Mid-year Increase ($181,938) ($181,938) 14 Total Adjustments $376,270 $376,270
15 16 Revenue Required from Rates $3,870,527 $1,223,730 $5,094,257

8.3. Sewer Infrasturcture (520) Revenue Requirement
Table 8-3 shows the Sewer Infrastructure fund revenue requirement, which is calculated analogously to the 220 fund.

Table 8-3: Sewer Infrastructure (520) Revenue Requirement Line Fund 520 Sewer Infrastructure Fund Operating Capital Total 1 Revenue Requirement
2 Rate Funded Capital Projects $2,683,982 $2,683,982
3 Total Revenue Requirement $0 $2,683,982 $2,683,982
4 5 Revenue Offsets
6 Miscellaneous/Non-Rate Revenues $6,010 $6,010
7 Interest Income $19,368 $19,368
8 Total Revenue Offsets $25,378 $0 $25,378
9 10 Adjustments
11 Adjustment for Cash Balance $434,179 $434,179
12 Adjustment for Mid-year Increase ($82,386) ($82,386) 13 Total Adjustments $0 $351,793 $351,793
14 15 Revenue Required from Rates ($25,378) $2,332,189 $2,306,811

8.4. Unit Rate Derivation
Next, Raftelis calculated the unit rate for operations and maintenance (O&M) and capital, shown in Table 8-4.

Raftelis derived the rates by dividing the revenue requirement, which was derived in Table 8-2 and Table 8-3, by the estimated sewer flow as shown in Table 8-4, column E.

Table 8-4: Sewer Flow Calculation by Customer Class (hcf) Line Cost Type
Revenue Requirement
[C]
FY 2023 Estimated
Sewer Flow
Unit Cost
($/hcf)
439
44 CITY OF ORANGE
[A] [B] [D] [E=C/D]
1 O&M $5,094,257 8,317,666 $0.61
2 Capital (Infrastructure) $2,306,811 8,317,666 $0.28
The Operations & Maintenance (O&M) rate is the per hcf unit cost to collect sewage. We apply these unit rates to the flow for each class to derive the cost to serve each class as shown in Table 8-5. Note that the total cost to serve each class in column E equals the revenue required from rates for O&M shown in Table 8-4 for FY 2023.

Table 8-5: Operations and Maintenance (220) Cost to Serve Each Class Line
[A]
Customer Class
[B]
FY 2023 Estimated
WW Flow (hcf)
[C]
O&M Rate
Component ($/hcf)
[D]
Cost to Serve
Each Class
[E=C*D]
1 Single Family 4,140,609 $0.61 $2,535,967
2 Multi-Family 1,760,684 $0.61 $1,078,353
3 Condo 206,062 $0.61 $126,205
4 Commercial 2,210,311 $0.61 $1,353,732
5 Total 8,317,666 $0.61 $5,094,257
The capital rate in Table 8-6 is the per hcf cost to fund the capital rehabilitation projects in FY 2023. As performed for O&M, we apply these unit rates to the flow for each class to derive the cost to serve each class in Table 8-6. Note that the total cost to serve each class in column E equals the revenue required from rates for capital shown in Table 8-4 for FY 2023.

Table 8-6: Sewer Infrastructure (520) Cost to Serve Each Class Line
[A]
Customer Class
[B]
FY 2023 Estimated
WW Flow (hcf)
[C]
Capital Rate
Component ($/hcf)
[D]
Cost to Serve
Each Class
[E=C*D]
1 Single Family 4,140,609 $0.28 $1,148,351
2 Multi-Family 1,760,684 $0.28 $488,306
3 Condo 206,062 $0.28 $57,149
4 Commercial 2,210,311 $0.28 $613,005
5 Total 8,317,666 $0.28 $2,306,811
440
WATER AND WASTEWATER RATE STUDY REPORT 45

9. Sewer Rate Derivation

9.1. Rate Structure
The City proposes the following rate structure for the 220 - Operations & Maintenance fund (O&M) and 520 - Infrastructure capital charges:

Table 9-1: Proposed Rate Structure
Line Customer Class O&M Charge/Rate Capital Charge/Rate 1 Single Family Residential Flat Charge Flat Charge
2 Multi-Family/Condo Flat Charge Flat Charge
3 Commercial Volumetric Rate Volumetric Rate

9.2. Rate Derivation

9.2.1. Operations & Maintenance (220) Rates and Charges Raftelis calculated the residential O&M rates (applicable to Single Family and Multi-Family/Condo customer classes) by dividing the cost to serve each class (derived in Table 8-5 and Table 8-6) by the total number of dwelling units and the total number of billing periods per year. In doing so, we arrive at the proposed bimonthly flat rate for the residential customer classes. For commercial customer classes, the O&M charge is based on a volumetric, dollar per hcf charge. Raftelis calculated the volumetric O&M rate by dividing the total cost to serve the commercial customer class (derived in Table 8-5) by the total sewer flow discharged by commercial customers.

This is also the volumetric rate derived in Table 8-5. The resulting rates for O&M charges are shown below in Table 9-2.

Table 9-2: Proposed O&M Rates (Fund 220)
Line
[A]
Customer Class
[B]
Cost to Serve
Class
[C]
Total Dwelling
Units
[D]
Billing Periods
[E]
Proposed
Bimonthly Flat
Rate
[F=C/D/E]
1 Single Family Residential $2,535,967 24,277 6 $17.41
2 Multi-Family/Condo $1,204,558 21,308 6 $9.42
Sewer Flow (hcf)
Proposed
Volumetric Rate
($/hcf)
[F=C/D]
3 Commercial $1,353,732 2,210,311 N/A $0.61

9.2.2. Sewer Infrastructure (520) Rates and Charges
Raftelis divided the total capital cost to each residential class (calculated in Table 8-6) by the total number of dwelling units in each category. The resulting values were then divided by the total number of billing periods to yield a bi- monthly flat rate for the City’s residential customer classes (Single Family and Multi-Family/Condo). To derive the commercial volumetric rate, Raftelis divided the total capital cost to serve the commercial class by total billed sewer flow. The resulting volumetric and fixed rates are shown in Table 9-3 below. 441
46 CITY OF ORANGE
Table 9-3: Proposed Capital Rates
Line
[A]
Customer Class
[B]
Cost to Serve
Class
[C]
Total Dwelling
Units
[D]
Billing Periods
[E]
Proposed
Bimonthly Flat
Rate
[F=C/D/E]
1 Single Family Residential $1,148,351 24,277 6 $7.88
2 Multi-Family/Condo $545,455 21,308 6 $4.27
Sewer Flow (hcf)
Proposed
Volumetric Rate
($/hcf)
[F=C/D]
3 Commercial $613,005 2,210,311 N/A $0.28

9.3. Rate Summary
Table 9-4 and Table 9-5 show the recommended five-year rate schedules for O&M (fund 220) and Sewer Infrastructure fund (fund 520) for each customer class.

Table 9-4: Five-Year O&M Rate Schedule
Line Customer Class Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 Bimonthly Fixed Rates
2 Single Family Residential $15.85 $17.41 $18.28 $18.83 $19.21 $19.59 3 Multi-Family/Condo $9.69 $9.42 $9.89 $10.19 $10.39 $10.60 4 Variable Rate ($/hcf)
5 Commercial $0.59 $0.61 $0.64 $0.66 $0.68 $0.69
Table 9-5: Five-Year Capital Rate Schedule
Line Customer Class Current Apr 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 1 Bimonthly Fixed Rates
2 Single Family Residential $7.15 $7.88 $8.28 $8.53 $8.70 $8.87 3 Multi-Family/Condo $4.37 $4.27 $4.48 $4.61 $4.71 $4.80 4 Variable Rate ($/hcf)
5 Commercial $0.27 $0.28 $0.29 $0.30 $0.31 $0.31
442
WATER AND WASTEWATER RATE STUDY REPORT 47

10. Sewer Bill Impacts
Section 10 describes the estimated bill impact for each customer class due to the new rates. We compare current customer bills to proposed customer bills under the new rates. The proposed sewer rates do not include the Street Tree Maintenance or Street Sweeping charges.

The current and proposed bills for the residential customer classes (Single Family, Multi-Family, and Condo) are based on a fixed charge applied on a per EDU-basis. The results of this comparison are shown as a dollar ($) and percentage (%) difference is shown in Columns G and H of Table 10-1 below, respectively.

For commercial customers, bills are based on a volumetric rate derived in Section 9. The bill impacts developed below for commercial customers apply a 3-year average water use for each of the two most common meter sizes: 1" and 2" meters. The resulting bill impacts are shown in Table 10-1 below. The multi-family customer bill impacts decrease because the data provided by the City indicated that there are more multi-family accounts than the prior study and the water use for these multi-family accounts has increased marginally compared to the prior study. This makes sense due to low-flow appliances and showerheads.

Table 10-1: Sewer Bill Impacts
Line
[A]
Customer Class
[B]
Meter Size
[C]
3-Year Avg.

Water Use
(hcf)
[D]
Proposed
Bill
(per unit)
[E]
Current Bill
[F]
Difference
($)
[G]
Difference
(%)
[H]
1 Single Family - - $25.29 $23.00 $2.29 9.97%
2 Multi-Family - - $13.69 $14.06 ($0.37) -2.64%
3 Condo - - $13.69 $14.06 ($0.37) -2.64%
4 Commercial 1" 44 $39.15 $37.84 $1.31 3.47%
5 Commercial 2" 182 $161.94 $156.52 $5.42 3.47%
443
Agenda Item
City Council
Item #: 10.3. 3/14/2023 File #: 23-0114
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Jeff Adams, Interim Community Development Director

1. SUBJECT
Public Hearing to consider the approval of the draft HOME Investment Partnership-American Rescue Plan Allocation Plan prior to submittal to the Department of Housing and Urban Development.

2. SUMMARY
Public Hearing to consider the approval of the draft HOME Investment Partnerships-American Rescue Plan (HOME-ARP) Allocation Plan to access the funds to continue services and resources to meet the needs of the qualifying populations including those experiencing homelessness.

3. RECOMMENDED ACTION

1. Authorize staff to incorporate public comments received at the Public Hearing into the HOME- ARP Allocation Plan.

2. Approve the HOME-ARP Allocation Plan prior to submission to the Department of Housing and Urban Development (HUD).

3. Authorize the City Manager or their designee to make any necessary changes to the Allocation Plan and submit the Allocation Plan to HUD.

4. Upon approval of the HOME-ARP Plan from the Department of Housing and Urban Development (HUD), accept into the City’srevenue budget $1,572,426.70 in HOME Investment Partnerships Program American Rescue funds into revenue account number 317.0000.45120.30206, Federal HUD Grants - HOME-ARP Grant.

5. Upon approval of the HOME-ARP Plan from the Department of Housing and Urban Development (HUD), authorize the appropriation of $1,572,426.70 from the HOME Fund (317) unreserved fund balance to expenditure account 317.9640.51670.30206 - HOME-ARP Other Professional Services.

6. Authorize the City Manager or their designee to execute documents related to the HOME-ARP Allocation Plan on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this Allocation Plan is $1,655,186 and will be funded through HOME (317).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly
Goal 4: Provide outstanding public service
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b: Provide facilities and services to meet customer expectation

6. DISCUSSION AND BACKGROUND
On January 10, 2023, Council held a Public Hearing and approved the draft HOME-ARP Allocation Plan. In order to comply with additional noticing language required by the HOME-ARP guidelines related to accessibility, this Public Hearing is being held a second time to allow members of the public who require special accommodation or translation services an opportunity to participate in the review and comment of the plan.

Additionally, the HOME-ARP Allocation Plan has been updated to reflect comments received at the January 10, 2023 Public Hearing and additional feedback and information received from continuum of care agencies and the community members through additional outreach efforts.

Furthermore, on July 12, 2022, Council approved the HUD pre-authorized appropriation of $82,759.30 of the $1,655,186 in HOME-ARP funds for the administration and planning of the allocation plan. However, in order to access the pre-authorized funds and the balance of the grant ($1,572,426.70), approval of the HOME-ARP Allocation Plan is required.

Background
On March 11, 2021, the American Rescue Plan (ARP) was passed in response to the COVID-19 pandemic. Congress appropriated $5 billion in ARP funds to be administered through the HOME Investment Partnerships Program (HOME) and authorized the Department of Housing and Urban Development (HUD) to distribute the funds to participating jurisdictions (PJ) that qualified for an allocation of HOME Funds in Fiscal Year (FY) 2021, of which the City of Orange was a recipient.

The intent of HOME-ARP is to address the need for homelessness assistance and supportive services to benefit qualifying individuals and families, including veterans who are experiencing homelessness, at-risk of homelessness, or are part of a vulnerable population such as those fleeing domestic violence. Eligible activities for the use of the HOME-ARP funds include:

1. Development and support of affordable housing;

2. Tenant-based rental assistance (TBRA);

3. Provision of supportive services;

4. Acquisition and development of non-congregate shelter units.

The City received an allocation of $1,655,186 in HOME-ARP funds. To access the funds, the City must develop a HOME-ARP Allocation Plan (Plan). The Plan describes the consultation and public participation process that the City engaged in as part of the process and requirement of developing the Plan. Additionally, the Plan outlines how the City will use HOME-ARP funds.

Discussion
For nearly 20 years, Mary’sKitchen, a non-profit, had a license agreement with the City to provide homeless individuals with a hot meal, shower facilities, mail services, and laundry services on City Property. While limited social services were also available to the clientele, Mary’sKitchen did not provide services through the Continuum of Care agencies. The City terminated the license agreement as safety concerns regarding how the organization was operating the facility continued to increase.

In the Spring of 2022, pursuant to an agreement reached in federal court, the City agreed to provide the services that were being offered at Mary’sKitchen to its clientele without interruption. The City partnered with The Hub OC, a local non-profit, to establish the Homeless Hub Resource Center City of Orange Printed on 3/9/2023Page 2 of 4
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partnered with The Hub OC, a local non-profit, to establish the Homeless Hub Resource Center (HRC) to administer the services in a temporary location on City property. To date, expenses for the services have been paid using Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, as well as the City’sGeneral Fund. It is important to note that the CARES funding is nearly depleted and the City utilized General Fund dollars to supplement the cost of operations and resources. The General Fund, however, is not a sustainable funding source due to the high costs associated with the operation of the HRC. The General Fund was used as a temporary solution to bridge the gap in funding to avoid interruption in services until another funding source could be identified.

The City’splan is focused on using HOME-ARP funds to reimburse the General Fund for qualifying expenses related to the HRC’s services and resources provided to the qualifying population.

Furthermore, the plan is to continue to fund the HRC’squalifying expenses until the HOME-ARP funds have been depleted. Costs related to the HRC’s operations include staff salaries, facility cleaning, showers, restroom/sink rentals, laundry rental, hygiene products, facility supplies, utilities, and most importantly, food and water. The Hub OC has an arrangement with Abound Food to prepare meals off-site and deliver them in temperature-controlled containers to the HRC to be distributed at the site. The Hub OC also works strategically with partner agencies and organizations to provide on- site appointments or referrals to a variety of services that include, but are not limited to medical, dental, mental health care, social services, veterinary services, housing and shelter. The Hub OC also utilizes its subsidiary non-profit Full Circle to provide clothing, and the Youth Center of Orange to provide childcare so parents can focus on getting the assistance they need to help them into stable employment or housing. The HUB OC also partners with Food Harvest and over 100 other partners to continue to provide resources to the HRC clientele.

To meet the housing requirement of the HOME-ARP grant and address some of the housing assistance needs within the city, the plan proposes to establish a Tenant Based Rental Assistance (TBRA) Program that will partner with affordable housing developments in Orange, such as Valencia Gardens, given its proximity to the HRC. The TBRA Program guidelines and requirements are under development and will return to the City Council at a future date for consideration. The TBRA Program will be funded through the City’sannual HOME Program entitlement to preserve the HOME-ARP funds for the operation of the HRC. Historically, the City has had difficulty finding qualifying projects for its HOME funding therefore, by establishing a TBRA program, the City will be able to more timely expend its HOME funding, while addressing a need in the community.

As required by the City’sapproved Citizen Participation Plan, a Public Notice was published in the Orange City News on February 9, 2023, to inform residents of the Public Hearing on March 14, 2023, and availability of the draft HOME-ARP for review and comment. The notice advised residents that copies of the draft plan were also available on the City’swebsite from February 9, 2023, through March 11, 2023. Additionally, the notice stated that hard copies of the document would also be available at the counters of the Community Development Department, Orange Main Public Library, and City Clerk’s Office.

If approved, staff will return to Council with a Substantial Amendment to the 2021 Action Plan to include the HOME-ARP funding required by HUD. The Action Plan is an annual document required by HUD that outlines the City’sintention for the use of a specific year’sfunding in accordance with the City’sapproved Consolidated Plan and provides a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan.

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Staff recommends the approval of the updated HOME-ARP Allocation Plan and requests authorization to incorporate any comments received by the community at the Public Hearing into the Plan for submittal to HUD.

7. ATTACHMENTS
· Draft HOME-ARP Allocation Plan
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Agenda Item
City Council
Item #: 10.3. 3/14/2023 File #: 23-0114
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Jeff Adams, Interim Community Development Director

1. SUBJECT
Public Hearing to consider the approval of the draft HOME Investment Partnership-American Rescue Plan Allocation Plan prior to submittal to the Department of Housing and Urban Development.

3. RECOMMENDED ACTION

1. Authorize staff to incorporate public comments received at the Public Hearing into the HOME- ARP Allocation Plan.

2. Approve the HOME-ARP Allocation Plan prior to submission to the Department of Housing and Urban Development (HUD).

3. Authorize the City Manager or their designee to make any necessary changes to the Allocation Plan and submit the Allocation Plan to HUD.

6. Authorize the City Manager or their designee to execute documents related to the HOME-ARP Allocation Plan on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this Allocation Plan is $1,655,186 and will be funded through HOME (317).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly
Goal 4: Provide outstanding public service
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b: Provide facilities and services to meet customer expectation

1. Development and support of affordable housing;

2. Tenant-based rental assistance (TBRA);

3. Provision of supportive services;

4. Acquisition and development of non-congregate shelter units.

In the Spring of 2022, pursuant to an agreement reached in federal court, the City agreed to provide the services that were being offered at Mary’sKitchen to its clientele without interruption. The City partnered with The Hub OC, a local non-profit, to establish the Homeless Hub Resource Center City of Orange Printed on 3/9/2023Page 2 of 4
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partnered with The Hub OC, a local non-profit, to establish the Homeless Hub Resource Center (HRC) to administer the services in a temporary location on City property. To date, expenses for the services have been paid using Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, as well as the City’sGeneral Fund. It is important to note that the CARES funding is nearly depleted and the City utilized General Fund dollars to supplement the cost of operations and resources. The General Fund, however, is not a sustainable funding source due to the high costs associated with the operation of the HRC. The General Fund was used as a temporary solution to bridge the gap in funding to avoid interruption in services until another funding source could be identified.

The City’splan is focused on using HOME-ARP funds to reimburse the General Fund for qualifying expenses related to the HRC’s services and resources provided to the qualifying population.

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Staff recommends the approval of the updated HOME-ARP Allocation Plan and requests authorization to incorporate any comments received by the community at the Public Hearing into the Plan for submittal to HUD.

7. ATTACHMENTS
· Draft HOME-ARP Allocation Plan
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HOME Investment
Partnerships
Program
American Rescue
Plan

HOME-ARP ALLOCATION
PLAN
March 2023
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HOME-ARP ALLOCATION PLAN
HOME Investment Partnerships (HOME) Program
American Rescue Plan
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TABLE OF CONTENTS
INTRODUCTION .......................................................................................... 4 CONSULTATION ......................................................................................... 5 PUBLIC PARTICIPATION .......................................................................... 17 NEEDS ASSESSMENT AND GAP ANALYSIS ......................................... 20 HOME-ARP ACTIVITIES ........................................................................... 35 HOME ARP PRODUCTION HOUSING GOALS ....................................... 38 PREFERENCES ........................................................................................ 38 HOME- ARP REFINANCING GUIDELINES .............................................. 38 REFERRAL METHODS ............................................................................. 39 APPENDIX A: Public Participation Comments .......................................... 40 APPENDIX B: HOME-ARP Certifications & SF 424 Form ........................ 51 454
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INTRODUCTION
On March 11, 2021, the American Rescue Plan (ARP) was signed into law to provide relief and to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses. To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARP funds to be administered through HOME to perform four activities that must primarily benefit qualifying individuals who are homeless, at risk of homelessness, or in other vulnerable populations. In order to receive the HOME-ARP allocation, the City must develop a HOME-ARP Allocation Plan that will become part of the City’s PY2021 HUD Annual Action Plan by substantial amendment.

The City of Orange’s HOME-American Rescue (ARP) Allocation Plan describes how the City of Orange engaged in the consultation and public participation process as part of the Plan’s development and requirements. It outlines how the City will use HOME-ARP funds to address the needs of qualifying populations who are defined as persons who are: (1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C.11302(a)) (“McKinney-Vento”); (2) at risk of homelessness, as defined in section 401 of McKinney-Vento; (3) fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; (4) part of other populations where providing supportive services or assistance would prevent a family’s homelessness or would serve those with the greatest risk of housing instability; or (5) veterans and families that include a veteran family member that meet the criteria in one of (1)-(4) above.

The City will receive $1,655,186 in HOME-ARP funding to be used in accordance with the HOME-ARP Guidelines and as described in this Allocation Plan.

The eligible activities for HOME-ARP activities are as follows:

1. Administration and Planning Costs;

2. Development of Rental Housing (Acquisition, Rehabilitation, Construction);

3. Development of Non-Congregate Shelter (Acquisition, Rehabilitation, Construction);

4. Tenant-Based Rental Assistance (TBRA);

5. Supportive Services; and

6. Nonprofit Operating and Capacity Building Assistance.

The contents of this plan will address how the City of Orange proposes to use its HOME-ARP Funds in accordance with the eligible activity proposed in this HOME- ARP Allocation Plan.
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The following are the major components addressed in the plan:

1. Consultation;

2. Public Participation;

3. Needs Assessment and Gaps Analysis;

4. Identification of HOME-ARP Activities;

5. HOME-ARP Housing Production Goals.

CONSULTATION
The City of Orange undertook an extensive consultation process to encourage public participation in the development of its HOME ARP-Allocation Plan. The consultation meetings helped inform this HOME ARP-Allocation Plan by providing additional information and data on the qualifying populations. The consultations also included one-on-one interviews with homeless individuals to assess the gaps in their services and needs. Through the consultations, the City was able to identify gaps in shelter, housing, other service delivery systems, and the eligible activities currently occurring within the City. Most importantly, the City identified potential collaborations for administering HOME-ARP eligible activities.

In accordance with the HOME-ARP Guidelines, the City consulted with the following agencies before developing its HOME-ARP allocation plan:
 Continuum of Care (CoC) agencies serving the jurisdiction’s geographic area;
 Homeless service providers;
 Domestic violence service providers;
 Veterans’ groups;
 Public housing agencies (PHAs);
 Public agencies that address the needs of the qualifying populations; and  Public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities.

Stakeholder Consultation
The consultation meetings were held as follows:
 Consultation Meeting #1 – Virtual meeting
October 13, 2022, 7:00 p.m.
 Consultation Meeting #2 – Virtual meeting
October 18, 2022, 6:00 p.m.
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 Consultation Meeting #3 – Weimer Room, 300 E. Chapman Avenue October 25, 2022, 6:00 p.m.
 Consultation Meeting #4 – Virtual Meeting
October 27, 2022, 7:00 p.m.
 Consultation Meeting #5 – Virtual Meeting
November 1, 2022, 4:00 p.m.
 Consultation Meeting #6 – Handy Park, 2143 E. Oakmont Avenue November 3, 2022, 6:00 p.m.
 Consultation Meeting #7 – El Camino Park, 400 N. Main Street November 10, 2022, 7 p.m.

The consultation meetings were coordinated to include public noticing and email invitations to all required participants under the HOME-ARP guidelines.

The meetings included:

1. Overview of the funding available to the City under the HOME-ARP program;

2. PowerPoint Presentation by City staff describing the funding source, HOME-ARP Allocation Plan Process, and the eligible activities the City considered for inclusion in the HOME-ARP Allocation plan;

3. Video presentation on the homeless services currently provided at the Homeless Resource Center (HRC) in Orange;

4. Solicitation of feedback for the needs of the Orange qualifying population.

The HOME-ARP Allocation Plan was developed following an extensive consultation and outreach effort. The City of Orange conducted extensive outreach activities beginning October 13, 2022. The City held over seven (7) consultation meetings to engage stakeholder groups in the process of its engagement efforts. In addition, fourteen (14) one-on-one interviews were held with homeless advocates, service providers, and homeless individuals beginning November 2022. The consultation meetings included external and internal participants. The consultation meetings with stakeholders were held virtually and in person. Community Development staff also offered one-on-one consultations to accommodate individuals unable to attend the consultation meetings. The consultation meetings with the stakeholders were advertised consistent with the City of Orange’s Citizen Participation Plan. Email communication was also sent to stakeholders. The outreach effort included advertisement via the City’s website and social media, flyers at City Hall Department counters and the Main Library, and on City monitors in at the City Clerk’s Office and Community Services Department. Meetings were also advertised on the City’s channel 3 station. 457
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Additionally, the City’s partner, The HUB OC, a local non-profit, distributed flyers at a local church, youth center location, and included the information in their monthly newsletter. The HUB OC also assisted with outreach by including information for the stakeholder meetings on their social media platforms.

The series of meetings and one-on-one interviews were conducted with internal/external stakeholders including homeless service providers, City staff, continuum of care partners, fair housing agencies, homeless individuals, among many others involved in addressing the homeless needs in the City of Orange.

For a complete list, please refer to table below. The consultation process provided helpful insight and clarification on current issues, needs, gaps and feedback for addressing the needs of the unsheltered populations throughout the City and region.

The interviews were conducted by staff from the City’s Community Development Department and Community Services Department.

The consultations provided attendees with the HOME-ARP Program background, funding availability, eligible uses of funds, and the range of activities the City of Orange proposes to undertake to address the needs of the qualifying populations.

The consultations were an essential part of assessing the needs of all the qualifying populations because it provided an opportunity to gather data maintained by other organizations.

Through the consultations, the City of Orange:
 Gathered data to understand the needs of the four qualifying populations;  Identified gaps in shelter, housing, or service delivery systems;  Determined eligible activities currently occurring within the City of Orange; and
 Identified potential collaborations for administering HOME-ARP eligible activities.

Additionally, a Public Hearing was held before the City Council on January 10, 2023, after proper noticing to solicit additional feedback on the use of HOME-ARP funds. A second public hearing was held on March 14, 2023, to include accessibility language in the noticing and give additional opportunity for stakeholder comment on the draft HOME-ARP Plan and receive City Council approval of the Plan. Initially, the Public Hearing for the Substantial Amendment to the 2021-2022 Action Plan to integrate the HOME-ARP Allocation Plan was noticed for February 14, 2023, but was re-noticed and held on March 28, 2023, to include additional accessibility language in the noticing. The following table includes a list of outreach methods, the date of the meeting and the targeted audience.
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Method of Outreach
Method of Outreach Date Target of Outreach
Flyers at:
 Community
Development
Department
 City Clerk Office
 Orange Main Library
 Friends Church
 Youth Centers of
Orange
October 13,
2022 –
November 10,
2022
 City Residents
 Community
Stakeholders
 Elected Officials
City of Orange Official
Website
October 11,
2022 - January
10, 2023
 City Residents
 Community
Stakeholders
 Elected Officials
Social media platforms:
 City of Orange
 The HUB OC
October 13,
2022-November
10, 2022
 City residents
 Community
Stakeholders
 Elected officials
Advertisement Monitors:
 Community Services
 City Clerk
October 13,
2022- November
10, 2022
 City Residents
 Community
Stakeholders
 Elected Officials
Direct email meeting
invitation
Starting October
1, 2022
 Continuum of Care
Service Providers
 Homeless Services
Providers
 Local Hospitals
 Fair Housing Agencies
 Food Service
Providers
 Local Partners (ie.

Starbucks, Full Circle,
City of Orange
Community Services
Department).
 CDBG Committee P
 Planning Commission
Members
 Elected Officials
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City’s Channel 3 Station Starting October
13, 2022 –
November 10,
2022
 City Residents
 Community
Stakeholders
 Elected Officials
One-on-One Interviews Starting October
1, 2022
 Targeted recipients
 Providers
Public Notice Starting
December 1,
2022
Community at Large
Push Notifications of
Meetings
Starting October
1, 2022
Subscribers
The HUB OC newsletter October,
November
Subscribers
Organizations Consulted by Type and Method
Agency/Org Consulted Type of Agency/Org Method of
Consultation
Coalition of OC
Community Health
Supports needs of
vulnerable populations
through service, education,
advocacy, and resources
Virtual stakeholder
meetings on 10/13/22,
10/18/22
Did not participate.

Orange County Health
Care Agency - County
of Orange Social
Services
Planning, implementing,
operating social services
One-on-one in-person
consultation on
11/9/22
Orange County Health
OC Outreach and
Engagement (OC O&E)
Care coordinator, case
management, and
assistance to physical
health, behavioral health,
housing, and other
supportive services
Virtual stakeholder
meetings on 10/13/22,
10/18/22
One-on-one in-person
consultation on
11/9/22
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The HUB – Homeless
Resource Center (HRC)
Administrator
Local non-profit; homeless
services provider, clothing
provider through their thrift
store, and youth services
through the Youth Centers
of Orange
Virtual stakeholder
meetings 10/13/22,
10/18/22, 10/27/22,
11/1/22
In-person stakeholder
meeting 10/25/22,
11/10/22
Abound Food Prepare and deliver meals
to the HRC
Virtual stakeholder
meeting 10/13/22,
10/18/22
Did not participate.

HomeAid Family care and emergency
shelter
Virtual stakeholder
meetings 10/13/22,
10/18/22
Feeding Freedom Homeless food service
provider
Virtual stakeholder
meeting 10/13/22,
10/18/22
Did not participate.

Helping Hands Homeless service provider Virtual stakeholder meeting 10/13/22,
10/18/22
Did not participate.

Helping Homeless
Companions
Homeless pet service
provider
Invited to virtual
stakeholder meetings
10/13/22, 10/18/22
One-on-one in-person
interview on 11/9/22
Hospital Association of
S. California
Homeless service provider Invited to virtual
stakeholder meeting
10/13/22, 10/18/22
Did not participate.
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Hurtt Family Clinic Homeless health service
provider
Invited to virtual
stakeholder meeting
10/13/22, 10/18/22
Did not participate.

Lestonacc Medical care and vision
services
Invited to virtual
stakeholder meeting
10/13/22, 10/18/22
Phone consultation on
11/17/22
Love Orange Community Service
Provider
Invited to virtual
stakeholder meeting
10/13/22, 10/18/22
Trellis Homeless Service Provider Virtual stakeholder
meeting 10/13/22,
10/18/22
Did not participate.

Clothing the Homeless Clothing provider for the
homeless
Virtual stakeholder
meeting 10/13/22,
10/18/22
Did not participate
Sisters of St. Josephs Homeless Service Provider Virtual meeting on 10/27/22
Assurance and
American Assistance
Provide free mobile devices
to homeless individuals
One-on-one in-person
interview on 11/15/22
Stay Connect.us Provide free mobile devices
to homeless individuals
One-on-one in-person
interview on 11/9/22
Full Circle Provides clothing assistance
to the homeless through the
HRC
Virtual stakeholder
meeting 10/18/22
Youth Centers of
Orange
Provide child-care
assistance for homeless
families through HRC
Virtual stakeholder
meeting on 10/18/22
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HomeAid Family care and emergency
shelter
Virtual stakeholder
meeting 10/18/22
Coalition of OC
Community Health
County of Orange
Continuum of Care
Virtual stakeholder
meeting 10/13/22,
10/18/22
Did not participate.

Volunteers of America Offers programs for
vulnerable populations
including domestic violence
victims and veterans and
their families
Virtual stakeholder
meetings on 10/13/22,
10/18/22
One-on-one in-person
consultation on
11/15/22
Veterans of OC Veteran’s Advocacy Group Invited to virtual stakeholder meetings
on 10/13/22, 10/18/22
Did not participate.

Volunteers of America Offers programs for
vulnerable populations
including domestic violence
victims and veterans and
their families
Virtual Stakeholder
Meeting 10/13/22,
10/18/22
One-on-one in-person
consultation on
11/15/22
Fair Housing
Foundation
Housing Advocacy Virtual stakeholder
meetings on
10/13/22, 10/18/22
Phone consultation on
11/17/22
CDBG Program
Committee
City of Orange Federal
Funding Board of Review
Virtual stakeholder
meetings on 10/13/22,
10/18/22
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Orange Police
Department (HEART
Team, Bike Team,
Homeless Outreach
Specialists)
Referrals and assistance to
homeless individuals in the
City of Orange
Virtual Stakeholder
Meeting 10/13/22,
10/18/22, 11/1/22
City of Orange
Community Services
Department
Oversee operations and
services to homeless
community in the city
Virtual stakeholder
Meeting 10/13/22,
10/18/22, 11/1/22
In-person stakeholder
meetings on 11/3/22
and 11/10/22
OC Housing and
Community
Development
Oversee grants for housing
and homeless services
Virtual stakeholder
meetings on 10/13/22,
10/18/22, 12/9/22
Orange County Health
Care Agency - County
of Orange Social
Services
Planning, implementing,
operating social services
Virtual stakeholder
meetings on 10/13/22,
10/18/22
One-on-one in-person
consultation on
11/9/22
Orange County Health
OC Outreach and
Engagement (OC O&E)
Care coordinator, case
management, and
assistance to physical
health, behavioral health,
housing, and other
supportive services
Virtual stakeholder
meetings on 10/13/22,
10/18/22
One-on-one in-person
consultation on
11/9/22
Orange Housing
Development
Corporation (OHDC)
CHDO Virtual stakeholder
meetings on 10/13/22,
10/18/22
Did not participate.

C&C Development Affordable housing
developer
Virtual stakeholder
meetings on 10/13/22,
10/18/22
Did not participate.
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Acacia Housing
Advisors
Affordable housing
developer
Virtual stakeholder
meeting on 10/18/22
Mercy Housing Affordable housing
developer
Virtual stakeholder
meetings on 10/13/22,
10/18/22
Did not participate.

OC Housing Authority Housing choice voucher
administrator
Virtual stakeholder
meetings on 10/13/22,
10/18/22
Virtual consultation on
12/9/22
Summary of Feedback Received from Consulted Organizations Through its consultation process with agencies that serve the qualifying populations in the City of Orange and region, an overwhelming support was voiced for supportive services, specifically at the HUB Resource Center (HRC) in the City of Orange.

HRC Background
For nearly 20 years, the only supportive service in the City of Orange for the qualifying populations were located at Mary’s Kitchen on city-leased property located at 517 W. Struck Ave. Mary’s Kitchen had a license agreement with the City to use City property located at 517 W. Struck Avenue to operate a soup kitchen that provided homeless individuals with a hot meal, shower facilities, mail services, and laundry services, and limited social services. The city terminated the agreement with Mary’s Kitchen as safety concerns were raised regarding the operations of the organization and the increase of occurrences of crime at the site.

In the Spring of 2022, after the termination of the agreement with Mary’s Kitchen and pursuant to an agreement reached in federal court, and most importantly, the emergency nature of the situation, the City of Orange mobilized expeditiously and entered into an agreement with a local non-profit, the HUB OC to create the Homeless Resource Center (HRC) to provide the same services that were being offered at Mary’s Kitchen without interruption. Through the HRC, proper guidelines, policies, and procedures were developed and put in place to properly administer homeless services in a temporary location on City-owned property 465
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along the parkway on Struck Avenue in front of the City of Orange’s Public Works Department only yards from the former Mary’s Kitchen site.

In its temporary location on City property, the HRC currently provides its clientele with a meal ticket, a shower ticket, and a laundry ticket as needed. The use of tickets for services is to track statistics and adjust resources and operations accordingly for future budgeting purposes. Additional services include mail, restroom facilities, haircuts offered through partners on site, as well as free childcare through The Hub OC’s subsidiary non-profit, the Youth Centers of Orange, to allow for parents the opportunity to seek employment.

Beyond the basic needs, Continuum of Care services appointments are made and facilitated by the HRC staff. Continuum of Care services include medical services, dental services, social services, shelter referrals, mental health services, rehabilitation services, veterinarian services, vision services, recovery groups, work programs, COVID-19 vaccinations, housing case worker, Domestic Violence Support Groups, addiction treatment, and job seeking assistance.

Currently, the City through its operator, the HUB, is serving over 100 meals per day at the HRC. In addition to meals, on average the same individuals seek showers, access to laundry facilities, and health care. These services are in dire need to those who do not have shelter to facilitate their daily needs.

Access to clothing for job interviews is available through The Hub OC’s other subsidiary non-profit, Full Circle Thrift Shop. Device charging stations are also maintained at the site, as well as availability of resources, free of charge, are provided to those who need them. Available resources include free cell phone and iPad devices that are distributed under a government program, in addition to hygiene kits, access to clothing, and socks. Bus tickets are also available for those needing transportation to appointments including job interviews. Motel vouchers are available for family crisis situations.

On average, over 100 individuals receive two hot meals for breakfast and lunch and a non-perishable meal for dinner on a given day. Tables are set up under easy up canopies for the clientele to eat and/or wait for their laundry or a free shower, charge their device, and/or schedule continuum of care services. The HRC operates Monday through Saturday, 9 am – 3 pm and is closed on Sundays.

The HRC operates during holidays as well. Thanksgiving Meal were even served on Thanksgiving Day.

The HRC staff has become very familiar with its clientele and not only know them on a first name basis, but are familiar with their cases and their housing or other status based on their needs. The HRC creates a welcoming environment for 466
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patrons and a place where they feel supported in a safe environment. Security is provided during the hours of operation.

The cost of operating the HRC includes facility cleaning, shower facility rental, laundry facility rental, distribution of hygiene products, facility supplies, staff salaries, utilities, security, restrooms/sink rentals, and most importantly, food and water. The HUB OC has an arrangement for food preparation and delivery services with Abound Food to provide hot meals. Abound Food prepares the food off-site and delivers the food to the HRC in temperature-controlled containers where the food is distributed to the qualifying population at the site.

To date, the expenses for the services at the HRC have been paid for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act fund, as well as the City’s General Fund. It is important to note that the CARES funding is almost completely depleted, and the City is utilizing General Fund to supplement the cost of operations and resources at the HRC. However, the General Fund is not a sustainable funding source because of the high costs associated with the operations and administration of the HRC. The General Fund is only being used as an emergency measure to avoid an interruption in services until other sources of funding could be identified.

To provide services more efficiently and effectively, the HRC will move from its temporary location on the sidewalk of Struck Avenue to the former Mary’s Kitchen site. The city will be relocating a mobile office unit that was donated by the Fire Department to the newly renovated site that will provide continuum of care providers additional space to meet with clients and allow for more privacy and offer classes and workshops on site that compliments all the needs of the qualifying population.

The Orange County Health Department of Social Services who conducts outreach efforts stated they’ve had many successes since the HRC opened last spring because it provides a “hub” for individuals to receive a coordinated effort of services and assistance and the effort is making a visible difference.

The HRC also serves many other qualifying and vulnerable populations such as victims of domestic violence, families, and runaway youth that have a great need for non-congregate shelters to house these vulnerable populations immediately.

Currently, motel vouchers are provided in emergency situations for these vulnerable populations.

Homeless individuals interviewed at the HRC during on-on-one interviews voiced their support for continuing the operations at the HRC since it is the only resource available to them for meals, laundry, showers, and other supportive services to meet their needs. Through these interviews it was revealed that the regular 467
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clientele at the HRC fall withing the definition of chronically homeless (being homeless for ten (10) or more consecutive years as defined by HUD). Those interviewed indicated they do not care for emergency sheltering even in the winter months due to the rules and restrictions.

Development of affordable housing was also referenced as the most significant issue facing the unsheltered population. There is lack of affordable housing in the County of Orange, as well with a trend of rising rents over the past few years. The lack of affordable housing options creates an obstacle to move those experiencing homelessness from shelter to permanent housing. Long waiting periods for shelters and affordable housing compound the situation. The issues are further compounded by a homeless individual’s credit worthiness and stability.

Another recurring theme is that most landlords are not accepting Section 8 vouchers as they do not reflect current ‘market’ value of their units and landlords also do not want to deal with the red tape of the program when there are tenants willing to pay the higher rents. Historically, the Section 8 program has assisted in securing long-term affordable housing and is not keeping pace with rising rents or inventory. Tenant-based rental assistance (TBRA) was also discussed as a program that could compliment the development of affordable rental housing next to the HRC as an additional resource.

Additional feedback received is found in Attachment #A.

PUBLIC PARTICIPATION
In accordance with the HOME-ARP Allocation Plan Guidelines, the City of Orange provided for and encouraged citizen participation in the development of the HOME-ARP allocation plan. Before submission of the plan, the City provided residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days from December 1, 2022 to December 15, 2022 . The City extended this review period through December 19, 2022 to allow for additional comment and feedback. The City followed its adopted requirements for “reasonable notice and an opportunity to comment” for plan adoption and subsequent amendment in its current Citizen Participation Plan. In order to include accessibility accommodation language in the noticing, the City re-noticed the HOME-ARP Public Review Period, for 30- days from February 9, 2023 – March 11, 2023 to allow more opportunity for public review and comment.

The City held a Public hearing on January 10, 2023 during the development of the HOME-ARP allocation plan. The City held a second Public Hearing during the development of the HOME-ARP allocation plan and prior to submission onMarch 14, 2023 after proper notice re-noticing.
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Furthermore, the City held a Public Hearing on February 14, 2023, but continued the hearing to March 28, 2023 for the Substantial Amendment to the 2021-2022 Action Plan in order to add accessibility language to the notice. The first review period of the Substantial Amendment to integrate the HOME-ARP Allocation Plan was held from January 12, 2023 – February 11, 2023. The second review period for the Substantial Amendment to the 2021 Annual Action Plan was held from February 23, 2023 – March 27, 2023 and the public hearing was held on March 28, 2023.

In compliance with HOME-ARP guidelines, the City made the following information available to the public:
 The amount of HOME-ARP the City will receive, and
 The range of eligible activities the City will undertake.

Throughout the HOME-ARP allocation plan public participation process, the City followed its applicable fair housing and civil rights requirements and procedures for effective communication, accessibility, and reasonable accommodation for persons with disabilities and providing meaningful access to participation by limited English proficient (LEP) residents that are in its current citizen participation plan as required by 24 CFR 91.105 and 91.115.

Additional comments and recommendations received through the public participation process either in writing, or orally at a public hearing or otherwise are summarized and included in Attachment #A.

Efforts to Broaden Public Participation
To broaden the public participation process, the City developed an extensive mailing list of the appropriate agencies required for consultation and the consultation meetings were coordinated to include public noticing, email invitations, and telephone calls to all required participants under the HOME-ARP guidelines. For those unable to attend a meeting, telephone conferences and one- on-one opportunities were made available. Special accommodations and translation services were offered.

The City also provided opportunities for an extended review and comment period of the HOME-ARP Allocation Plan to allow for additional public participation.

In compliance with the HOME-ARP guidelines, all notices were published in the Orange City News which is a newspaper of general circulation. The public participation process included noticing via direct email to continuum of care partners, advertisement on all City Hall tv monitors (City Clerk, Community Services), flyers at public counters (City Clerk, Community Services, Community 469
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Development, Youth Centers of Orange, Friends Church); advertisement on the City of Orange Official Website, and City of Orange social media platforms including Facebook, City push notifications to subscribers of news items, and Channel 3. Notification of the Public Hearing was also communicated via email to the mailing list of stakeholders and to attendees at all the consultation meetings.

A hard copy of the Plan was made available at the Community Development Department Counter, City Clerk’s Office, Orange Main Library, and a digital copy was made available on the City’s website.

City staff also placed individual and personal calls to groups that were unable to attend the consultation meetings. Special accommodations were made available for anyone needing them to ensure every opportunity was used to pursue additional feedback to inform the Allocation Plan.

All comments or views were considered orally and in writing and incorporated herein in the process of preparing the HOME-ARP allocation plan.

Summary of Public Comments
December 1, 2022 to December 19, 2022 – First Allocation Plan Public Review and Comment Period:
 There were no public comments during the public comment period or at the public hearing.

January 10, 2023 – Public Hearing on HOME ARP Plan
 Twelve member of the public spoke in support of the proposed Allocation Plan.

February 9, 2023 to March 11, 2023 – Second HOME ARP Plan Public Review and Comment Period:
 Pending completion of review period
March 14, 2023 – Public Hearing to consider HOME-ARP Plan  Pending completion of review period
March 28, 2023 – Public Hearing on Substantial Amendment to the Fiscal Year 2021 Annual Action Plan to integrate the HOME-ARP Plan
 Pending public hearing
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Public Comments and Recommendations Not Accepted and Reasons Pending completion of public comment period and public hearing

NEEDS ASSESSMENT AND GAP ANALYSIS
The City of Orange evaluated the size and demographic composition of the qualifying populations within its boundaries and assessed the unmet needs of each of these populations to identify gaps and needs within its current shelter and housing inventory, as well as the service delivery system. The City used current data, including point in time count, housing inventories, and other data available through CoCs, and consultations with service providers to quantify the qualifying populations.

HOME- ARP Eligible Qualifying Populations
The American Rescue Plan Act (ARP) defines qualifying individuals or families, including Veterans, that are:

Homeless as defined in 24 CFR 91.5 (1)
Chronically homeless means:

1. A “homeless individual with a disability,” as defined in section 401(9) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), who:
 Lives in a place not meant for human habitation, a safe haven, or in an emergency shelter; and
 Has been homeless and living as described in paragraph (1)(i) of this definition continuously for at least 12 months or on at least 4 separate occasions in the last 3 years, as long as the combined occasions equal at least 12 months and each break in homelessness separating the occasions included at least 7 consecutive nights of not living as described in paragraph (1)(i). Stays in institutional care facilities for fewer than 90 days will not constitute as a break in homelessness, but rather such stays are included in the 12-month total, as long as the individual was living or residing in a place not meant for human habitation, a safe haven, or an emergency shelter immediately before entering the institutional care facility;

2. An individual who has been residing in an institutional care facility, including a jail, substance abuse or mental health treatment facility,hospital, or other similar facility, for fewer than 90 days and met all of the criteria in paragraph (1) of this definition, before entering that facility; or 471
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3. A family with an adult head of household (or if there is no adult in the family, a minor head of household) who meets all of the criteria in paragraph (1) or (2) of this definition, including a family whose composition has fluctuated while the head of household has been homeless.

At Risk of Homelessness- as defined in 24 CFR 91.5 (2)
The number of individuals at risk of homelessness is difficult to assess given an individual’s circumstances can change overnight. An individual at risk of homelessness is defined in 24 CFR 91.5 as those that have an annual income below 30 percent of median family income for the area at the greatest risk of homelessness, especially those that do not have family, friends, or other social networks to rely on. An individual at risk of homelessness is best described in meeting one of the following conditions:

1. Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance;

2. Is living in the home of another because of economic hardship;

3. Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;

4. Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal , State, or local government programs for low-income individuals;

5. Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 people per room, as defined by the U.S. Census Bureau;

6. Is exiting a publicly funded institution, or system of care (such as a health- care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or

7. Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved
Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD in the Notice (3) Any individual or family who:

1. Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual's or family's primary 472
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nighttime residence or has made the individual or family afraid to return to their primary nighttime residence;

2. Has no other residence; and

3. Lacks the resources or support networks, e.g., family, friends, faith-based or other social networks, to obtain other permanent housing.

Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability, as defined by HUD in the Notice (4)
A youth (17 years or younger) not accompanied by an adult (18 years or older) or an adult without children, who is homeless (not imprisoned or otherwise detained pursuant to an Act of Congress or a State law), including the following:

1. An individual who lacks a fixed, regular, and adequate nighttime residence; and

2. An individual who has a primary nighttime residence that is:
 A supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill);  An institution that provides a temporary residence for individuals intended to be institutionalized; or
 A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

Size and Demographic Composition of Qualifying Populations within the City’s Boundaries
Homeless Population - as defined in 24 CFR 91.5 (1)
All data charts listed below are based on the Orange County 2022 Point in Time Summary. All reported data are reflective of the County as a whole and demographic data is not broken down to the city level.

Every two years, the Point in Time (PIT) count is conducted by the Orange County CoC to assess the population of individuals experiencing homelessness. The 2022 Orange County Point in Time count indicated that the county has a total of 4,510 homeless individuals with 2,806 unsheltered persons and 1,704 temporarily sheltered persons. There is a total of 1,201 homeless individuals in households with at least one child under the age of 18 and 950 are sheltered and 251 are unsheltered.

Between the count in 2019 to 2022, the county overall saw a decrease in total temporarily sheltered homeless population for both adults and household with at 473
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least one child under the age of 18. In 2019 there were a total of 5,296 homeless individuals and it decreased by 768 individuals in 2022, which is a 14% decrease.

For households with children, there were 1,550 persons in 2019 and it decreased by 349 individuals, which is a 16% decrease.

The Orange County Coc is broken down into various planning areas. The City of Orange is within the North Service Planning area. The detailed breakdown of demographic information of homeless individuals is not available for each individual city. In 2022, the Orange County CoC North Service Planning area had a total of 1,115 unsheltered individuals and 1,306 temporarily sheltered individuals. Out of those individuals, the City of Orange makes up 134 unsheltered individuals and 116 temporarily sheltered individuals bringing the city’s total homeless count to 250.

Due to the COVID-19 pandemic, point in time counts were not conducted in 2020 or 2021. In 2019, the city’s number of homeless individuals was 341 and the 2022 point in time count suggest that the number decreased by 27% to 250. The number of temporarily sheltered individuals decreased by 22% from 148 in 2019 to 116 in 2022. The number of unsheltered individuals decreased by 30% from 193 to 134 in 2022.

Homeless by Household Status
Summary of Persons in Each Household
Type Sheltered Unsheltered Total
Persons in households without children 1704 2806 4510
Persons in households with at least one
adult and one child 950 251 389
Children under age 18 594 121 715
Persons over age 18 356 0 486
Persons in households with only children 0 7 7
Data Source: County of Orange 2022 Point in Time Summary. Data references the County level and includes City of Orange. Demographic data down to the City of Orange level is not available.

Demographic Summary by Race
Race Sheltered Unsheltered Total
American Indian or Alaska Native 93 118 211
Asian 99 96 195
Black or African American 293 190 483
Native Hawaiian or other Pacific Islander 26 31 57
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White 2056 2000 4056
Multiple Races or Other 94 622 716
Data Source: County of Orange 2022 Point in Time Summary. Data references the County level and includes City of Orange. Demographic data down to the City of Orange level is not available.

Summary of other Populations Reported
Homeless Population Sheltered Unsheltered Total
Adults 2,060 2,936 4,996
Veterans 135 145 280
Victims of Domestic Violence 226 289 515
Chronic Homelessness 791 1,617 2,408
Substance Use Issues 416 1217 1,633
Physical Disability 512 945 1,457
Mental Health Issues 578 867 1,445
Developmental Disability 39 419 458
HIV/AIDS 77 52 129
Data Source: County of Orange 2022 Point in Time Summary. Data references the County level and includes City of Orange. Demographic data down to the City of Orange level is not available.

Sheltered Homeless Population (1)
HUD defines a sheltered a homeless person as adults, children, and unaccompanied children, on the night of the count, are living in shelters for the homeless.

The 2022 sheltered point-in time count identified 2,661 people experiencing sheltered homelessness in Orange County. There were 1,306 people experiencing homelessness in the North Service Planning area, 116 of who were in the City of Orange. Among the individuals experiencing sheltered homelessness in Orange County:
 64% (1,704) were in households with adults only; 35.7% (950) were in households with at least one adult and one child, which is further broken down to 13.4% (356) adults in family units and 22.3% (594) children in family units; unaccompanied youth made up 0.003% (7)
 72.7% (1,934) were over the age of 24; 4.7% (126) were between the age 18-24; and 22.6% (601) were under the age of 18
 51.5% (1,370) identified as male; 48.1% (1,280) identified as female; 0.15% (4) identified as transgender; 0.2% (6) identified as gender not singularly male or female; 0.04% (1) person identified as questioning. 475
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 54.7% (1,455) identified as Hispanic or Latino; 45.32% identified as Non- Hispanic or Non-Latino
 3.49% (93) identified as American Indian or Alaska Native; 3.72% (99) identified as Asian; 11.01% (293) identified as Black or African American;

0.98% identified as Native Hawaiian or other Pacific Islander; 77.26% (2,056) identified as White; 3.53% (94) identified as multiple races or other.  0.05% (135) were veterans
 38.40% (791) meet the definition of experiencing chronic homelessness  20.19% (416) were adults with substance use issues
 24.85% (512) were adults with physical disability
 28.06% (578) were adults with mental health issues
 1.89% (39) were adults with developmental disability
 10.97% (226) were adults that survived domestic violence  3.74% (77) were adults with HIV/AIDS
Unsheltered Homeless Population (1)
The 2022 unsheltered point-in-time count identified 3,057 unsheltered homelessness in Orange County. There were 1,113 unsheltered homeless in the North Service Planning area, 134 of who were in the City of Orange. Among the individuals experiencing unsheltered homelessness in Orange County:
 91.7% (2,806) were in households with adults only; 0.08% (251) were in households with at least one adult and one child, which is further broken down to 0.04% (130) adults in family units and 0.04% (121) children in family units.
 92.4% (2,827) were over 24; 3.57% (109) were between the age 18-24;

3.96% (121) were under 18
 73.50% (2,247) identified as male, 25.81% (789) identified as female;

0.43% (13) identified as transgender; 0.13% (4) identified as gender not singularly female or male, and 0.13% (4) identified as questioning  34.22% (1,046) identified as Hispanic or Latino; 65.78% (2,011) identified as Non-Hispanic or Non-Latino
 3.6% (118) identified as American Indian or Alaska Native; 3.14% (96) identified as Asian; 6.22% (190) identified as Black or African American;

1.01% (31) identified as Native Hawaiian or other Pacific Islander; 65.42% (2,000) identified as White; 20.35% identified as multiple races or other  0.05% (145) were veterans
 55.07% (1,617) meet the definition of experiencing chronic homelessness  41.45% (1,217) were adults with substance use issues
 32.19% (945) were adults with physical disability
 29.53% (867) were adults with mental health issues
 14.27% (419) were adults with developmental disability  9.84% (289) were adults that survived domestic violence 476
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 1.77% (52) were adults with HIV/AIDS
At-Risk of Homelessness- as defined in 24 CFR 91.5 (2)
The definition of those who are at risk of homelessness includes individuals and families who have an annual income below the 30% of the median family income for the area as defined as HUD. They do not have sufficient resources or support networks, immediately available to prevent them from moving to an emergency shelter or place not meant for habitation and experience risk factors of homelessness including recent housing instability or exiting a publicly funded institution or system of care.

Other Population: At greatest risk of housing instability – Households with incomes < 30% AMI and experiencing severe housing cost burden (4) Households who are at greatest risk of housing instability are households with incomes below 30% AMI. HUD Comprehensive Housing Affordability Strategy (CHAS) 2014-2018 data Table 10 provides information on households that include more than one family, household income level and overcrowding. This CHAS data indicates there are approximately 6,715 households with incomes less than 30% AMI. There are approximately 4,625 renters who have household income below 30% AMI.

Unmet Housing and Service Needs of Qualifying Populations Unmet Housing Needs of Qualifying Populations
For households with the greatest risk of housing instability, there is a lack of affordable rental housing in the city. The table below highlights, there are only

6.8% (1,196) rental units available to households below 30% AMI and 11.6% (2,054) rental units available to households between 30%-50% AMI. The level of need for rental units for households with less than 50% AMI is more than two times the available units with a total gap of 4,370 units.

Housing Needs Inventory and Gap Analysis
Available
Units
Level of
Need
HH with at
least 1
Housing
Problem
GAP
(Units-
Level of
Need
Total Rental Units 17,679
<=30% AMI 1,196 4,625 3,720 -3,429
>30% to <=50% AMI 2,054 2,995 2,730 -941
Total <=50% AMI 3,250 7,620 6,450 -4,370
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Data Source: ACS 2021 and HUD 2015-2019 CHAS
Based on the collected data in the Orange County PIT and CoC Housing Inventory Count, the number of shelter beds are limited at the County level. There is a gap of 456 beds for the adult homeless population. There are currently 4,996 homeless adults in the county, while the total number of beds available across emergency shelter, transitional housing, permanent supportive housing, and other permanent supportive housing is 4,531.

Unmet Service Needs of Qualifying Populations
Following consultation with the required agencies and data collection, it was determined that the unmet service needs for the qualifying populations in the city are:
 Food/Water
 Shower and Laundry facilities
 Clothing
 Electronic charging stations
 Hygiene supplies
 Mail services
 Centralized location for CoC providers
 Outreach services
 Case management
 Substance Abuse Treatment
 Job training and resources to employment
 Case management services
 Life skill training
Currently, these service needs are being met at the local level at the HRC who serves all the qualifying populations. Since the opening of the HRC, the HUB OC has kept data for all the services it provides including meals, shower facilities, laundry, coordination of CoC services, and child-care. The child-care services allow parents an opportunity to meet with the service providers to assist with their housing or employment assistance needs, or deal with a crisis that put them at risk of homelessness, such as those fleeing domestic violence. Without the HRC, the needs of the City’s homeless community would not be met.

The following data was compiled by the HRC and is a snapshot of the average qualifying population they serve:
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 Individuals: 150 daily
 Families: 2-3 weekly
 Veterans: 30 daily
 Youth: 10 weekly
 At Risk: 115 weekly
 Fleeing Domestic Violence: Approximately 30 daily
 Stalking: 50 daily, based on PTSD, mental health, addiction, and trauma.

Many believe they are being stalked.
 Human Trafficking: 3 women a day
 Populations where supportive services would prevent a family’s homelessness: 25-50 a week
 Those with the greatest risk of housing instability: 150 daily  Victim services hotline call volumes: 50 calls a day on behalf of our patrons. Only: 2-5 individuals will benefit from the hotline calls. It all depends on who answers the phone on the other end.

Staff at the HRC familiar with the Orange clientele provided the following information of the needs for each of the qualifying populations they serve:
 Homeless: Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief  Individuals: Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief  Families: Safe environments/low stress environments, being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief
 Veterans: Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief  Youth: Safe environments/low stress environments. Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief
 At Risk: Safe environments/low stress environments. Low barrier and quick responsive resources. Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs, and financial relief
 Fleeing Domestic Violence: Safe environments/low stress environments.

Low barrier and quick responsive resources. Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief
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 Stalking: Safe environments/low stress environments. Low barrier and quick responsive resources. Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs, and financial relief
 Human Trafficking: Safe environments/ low stress environments. Low barrier and quick responsive resources. Being advocated for, meals, basic hygiene needs, emotional, mental health care, sheltering or housing, jobs and financial relief
All of the feedback was also considered in addition to local data collected at the HRC to determine unmet service needs of the qualifying population. 480
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Current Resources Available to Assist Qualifying Populations Current Homeless Housing Inventory
Family
Beds
Family
Units
Adult
Beds
Adult
Units Vet Beds
Emergency
Shelter 634 176 1,875 N/A 0
Transitional
Housing 711 234 157 N/A 81
Permanent
Supportive
Housing
1,279 391 1,514 N/A 1,178
Other
Permanent
Housing
622 229 985 N/A 0
Data Source: HUD 2022 Continuum of Care Housing Inventory Count. Data references the County level and includes City of Orange. Demographic data down to the City of Orange level is not available.

According to the 2022 Orange County Housing Inventory Count Report, and the data collected at the HRC, there are several resources available at the County level to assist qualifying populations as follows:

1. Emergency shelter allows for short term stays. Currently there are 634 family beds, 176 family units, 1,875 adult beds, and 0 bed available for veterans.

2. Transitional housing generally allows for a stay of up to 24 months. In the county there are 711 beds and 234 family units, 1,514 adult beds, and 81 are reserved specifically for vets. Family beds and units are for household with one adult and at least one child under age 18.

3. Permanent supportive housing is housing assistance (long-term leasing or rental assistance) with supportive services provided with households to achieve housing stability. There are 1,279 beds and 391 units for families, 1,514 beds for adults, and 1,178 for veterans.

4. Other permanent housing includes housing with services that does not require disability required for entry. There are 622 beds and 229 units for families, 985 beds for adults, and 0 for veterans.
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5. Congregate and non-congregate shelter units is (1) Congregate housing is for displaced, elderly, and handicapped persons or families in which some or all of the individual dwelling units do not contain kitchen facilities, and which has a central dining facility to provide nutritious and economical meals for the residents. (2) Non-congregate shelter is the term used for emergency shelters that provide accommodations in a way that provides private space for guests. Non-congregate shelter is generally provided via motel rooms and is a proven way to limit the spread of COVID 19 among people experiencing houselessness.

Both congregate and non-congregate shelter units are available in North Service Planning Area, with shelters in Buena Park and Placentia. The shelters are not administered by the city, however. The cities of Anaheim, Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Placentia, Villa Park, Stanton, and Yorba Linda, through the North SPA Partnership, collaborated with funding to create two full-service Navigation Centers to provide help to the region’s homeless. The HRC provides services to connect individuals to these shelters, provides continuum of care services while individuals are waiting to be placed in the shelter, and provides services for those who declined shelter services. Additionally, the City’s HEART Team and the Orange County Health OC&OE also provide the resources individuals need to seek shelter where beds are available.

6. Tenant Based Rental Assistance (TBRA) There are many different types of TBRA programs, but the most common type provides payments to make up the difference between the amount a household can afford to pay for housing and the local rent standards. Other TBRA programs help tenants pay for costs associated with their housing, such as security and utility deposits. Currently, the City of Orange does not have a TBRA program.

However, the City is launching its TBRA with HOME funding in Fiscal Year 2023-24 to assist those at risk of homelessness.

7. Affordable and Permanent Rental Housing. Over the past 2.5 years, the City has committed HOME funding to four separate affordable housing developments. A total of 352 affordable units will be created in the community. One of the projects, Valencia Gardens, is currently under construction and is adjacent to the HRC site. The city will be using its HOME funds to establish a TBRA program that will provide for additional housing support.

Other resources available to qualifying populations in the city include Local/State and Federal Funds in the form of:
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8. CDBG Funding. The city received an allocation of $1,034,444 that can be used for public service organizations that serve the qualifying populations.

9. HOME Funding. The City received an allocation of $432,231 in HOME funds that is used for affordable housing development programs.

10. PLHA/Successor Agency Funds. Orange has joined with the cities of Anaheim, Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Placentia, Villa Park, Stanton, and Yorba Linda in an unprecedented partnership called the North Service Planning Area (SPA).

The North SPA Partnership is a joint collaboration that includes two full- service Navigation Centers to provide help to the region’s homeless. The HRC provides services to connect individuals to these shelters, provide continuum of care services while individuals are waiting to be placed in the shelter, and provide services to those who declined shelter services.

Gaps within the current shelter and housing inventory as well as the service delivery system
Based on the data gathered, the current shelter and housing inventory is not sufficient to meet the current needs in the City, County. or Region to house the unsheltered population.

Shelter Gap
Shelter Gap - Beds in Emergency Shelters and Transitional Housing Existing Bed Capacity (Emergency Shelter + Transitional Housing) 3,122
Total Homeless 5,711
Total Adult HH Homeless population 4,510
Total Family HH Homeless population 1,201
GAP
(Existing bed capacity -total homeless population) -2,589 The shelter gap methodology used to determine the shelter gap included the January 2022 PIT count of homeless individuals in Orange County and the CoC Housing Inventory Count. The data revealed the existing number of beds is not enough to assist the homeless population. There is a deficit of 2,589 beds in shelters and transitional housing.

The 2022 PIT does not break down the number of homeless populations by household type in the city. The PIT stated that there were 148 unsheltered 483
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homeless population in the City of Orange, but does not define how many were individuals, in family units, or children.

Affordable and Permanent Supportive Rental Housing Gap
There is an estimated gap of 3,200 rental units affordable to renter households with income less than 30% AMI. In addition, there are a total of 1,145 rental units affordable to household with 30%-50% AMI.

Affordable Rental Unit Gap
Renter Households with income at or below 30% AMI paying more than 50% of income for rent 3,200
Renter Households with income 30% to 50% AMI paying more than 50% of income for rent 1,145
Total Affordable Rental Unit Need 4,345
Housing Voucher Gap
Based on the input gathered from the Orange County Authority, there are 363 Section 8 housing vouchers that are held in the City of Orange. Furthermore, there are approximately 2,900 individuals placed on the waiting list for the voucher. One of the challenges with locating units for voucher holders is the limited affordable housing supply in the city. The city has a shortage of 4,370 affordable rental housing units.

Service Delivery System Gap
Data collected at the HRC and through consultation with the stakeholders and those experienced with working with the qualifying population, also helped inform the HOME-ARP Plan to identify the gaps in the service delivery system. The following are the service delivery gaps identified by the HUB OC at the HRC since working with the qualifying population since April 2022:
 Homeless: There are not enough beds available when an individual needs it most.
 Families: There are not enough places where there are beds for couples and often these families get split up.
 Veterans: Mental health services, Post Traumatic Stress Disorder (PTSD), available beds in shelters with wrap around services.
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 Youth: Parents are not always placed in the same housing opportunity with their child and shelter is needed to accommodate them.
 At Risk: The need for PTSD, mental health, addiction, and trauma care in the moment of emergency.
 Fleeing Domestic Violence: Not enough Safe home bed availability.  Stalking: The need for PTSD, mental health, addiction and trauma care in the moment of emergency.
 Human Trafficking: The need for PTSD, mental health, addiction and trauma care in the moment of emergency. The need for PTSD, mental health, addiction, and trauma care in the moment of emergency  Populations where supportive services would prevent a family’s homelessness: Availability and space in all the programs they have access to are limited.
 Populations at greatest risk of housing instability: Not enough beds available when an individual needs it most. Availability and space in all the programs they have access to is limited.

The HRC has created an extended network of agencies and housing providers to assist in cases where shelter is an option for those willing to pursue it. Since it started operating in April 2022, together with all the partners, the HRC has successfully helped house over 100 individuals.

The families that are at risk or experiencing homelessness do not frequent the HRC at the same consistent rate as its regular clientele, but there are cases where families go the HRC out of desperation due to unforeseen circumstances.

Through its partnerships, temporary shelter is facilitated through the HRC along with services to assist the family. For example, if the family has minors, the HRC will work with the Youth Centers of Orange to provide child-care so that the parent(s) are able to seek supportive services which can include crisis intervention or job search assistance.

For the homeless subpopulations served in Orange, many are chronically homeless because they suffer from severe mental illness, chronic substance abuse, HIV/AIDS, disabilities, and are veterans. The greatest challenge is they do not wish to seek shelter based on actual testimony from our interviews.

The greatest service delivery need for the qualifying population is meals, showers, laundry facility, hygiene kits, access to closing/socks, mail services, and a one- stop location connection to the Continuum of Care services offered. These services are not offered in the adjacent communities and the dire need is 485
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evidenced by the homeless clientele that the HRC serves and personal interviews with them in the process of developing this plan.

Priority Needs for Qualifying Populations:

The priority needs for the City of Orange’s qualifying population is supportive services with the greatest emphasis on the provision of meals, showers, laundry, mail service, access to clothing, and the connection to CoC resources.

Prior to the HRC, Mary’s Kitchen did not maintain statistical data. Due to the urgent nature of continuing services previously offered by Mary’s Kitchen and avoid a disruption in services, the City used CARES Act funding to continue supportive services for the qualifying population. Because of the CARES Act funding source, data for the qualifying population has been collected by the HRC since Spring of 2022. The data has made supportive services at the HRC the highest priority need for the qualifying population in the city.

HOME-ARP ACTIVITIES
Administration of Eligible Activities
The City of Orange does not have the capacity to administer eligible activities directly making it necessary to contract with a service provider to administer HOME-ARP activities on the City’s behalf. The City’s does not plan to directly administer HOME-ARP activities aside from program administration and planning.

Use of HOME-ARP Funding
The City of Orange will use its HOME-ARP allocation of $1,655,186 to provide supportive services which is an eligible HOME-ARP activity. The planned funding for supportive services is $1,572,427. The administration and planning costs will be within HOME-ARP limits as reflected in the table below.

Use of HOME-ARP Funding
Funding
Amount
Percent of
the Grant
Statutory
Limit
Supportive Services $ 1,572,427
Acquisition and Development of
Non-Congregate Shelters $ 0
Tenant Based Rental Assistance
(TBRA) $ 0
Development of Affordable Rental
Housing $ 0
Non-Profit Operating $ 0 0 % 5%
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Non-Profit Capacity Building $ 0 0 % 5%
Administration and Planning $ 82,759 5 % 15%
Total HOME ARP Allocation $ 1,655,186
HOME-ARP Funds Distribution Plan
HOME-ARP Funded Plan
The City plans to distribute the HOME-ARP funds in accordance with the priority needs identified in its consultations, need assessment and gap analysis which is to continue to fund supportive services at the HRC.

HOME-ARP administrative funds have not been provided to any subrecipient prior to HUD’s acceptance of the HOME-ARP Allocation Plan.

Long-Term Plan
Once the HOME-ARP funds are depleted, the Hub is planning to modify the current operations of the HRC as part of the long-term plan to avoid interruption in services and reduce operational costs which are not sustainable without grant funding. In addition to the partnerships that have already been developed which includes over 40 partners, the HUB endeavors to work strategically with partners in the local and global communities and organizations to provide services free of charge and has built a collaborative network to acquire donations for resources.

Additionally, partnerships are being developed to offer classes and workshops at the site to help clients work towards long term employment and housing stability.

The goal of the HRC in the long run is to continue to offer the same services it does now, however adjust meals to a more nutritional, medical, and supplemental based service. Current services such as showers and laundry will continue to be offered and clients will be encouraged to attend a class, workshop, or other empowering services offered at the site through one of its partners or volunteers.

In addition to the 40 partners, the HUB is continuously seeking out additional partners to expand services and resources for the homeless community at no additional cost. The HUB OC develops it partnerships by reaching out to schools, non-profits, and local businesses and donors directly and sharing the mission and vision of the HRC with the goal of receiving continuous or one-time financial or in- kind donations. Partnerships are also developed through word of mouth from volunteers and current partner organizations already providing services at the site.

The HRC has partnerships for the classes, workshops, and other empowering services it will offer at the site in the long-term. Examples include:
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 Work Program focused on creating healthy work ethics and facilitating project participation throughout the city to develop workforce skills;  Classes on health care for individuals living on the streets by nurses from local state university.
 Support classes for mothers including lactation and birthing that will also offer essential items that can be purchased using EBT and WIC onsite;  Resume building and application assistance by professionals and volunteers in our community;
 Drug and addiction programs through Celebrate Recovery/AA that offers video and workbook curriculum, sponsors, and success chips;  Men’s and Women's support groups for holistic well-being;  Associate Degree Program through a local college that clients will be able to complete at the HRC through the use of donated computers;  Nutritional courses by a food scientist;
 Outreach courses for volunteers and local businesses wanting to understand the difficulties of the homeless population and discover ways in which they can help.

Additionally, the HUB and the City will work collaboratively to seek grant funding to continue the ongoing operation of the facility to avoid disruption.

The Hub OC proposes to make the adjustments to the operation of the current services in the long-term to run the facility more efficiently and at a sustainable cost while continuing to provide the services that are available as the HRC as it currently operates because of financial constraints and funding availability.

Rationale for Use of HOME-ARP Funds
The rationale for the use of HOME-ARP funds to provide supportive services was through the consultation process with the HRC and its clientele, COC participants, stakeholders, and the one-on-one interviews. The data collected over the last year by the HRC tells the true story and the significant impacts the HRC is making in the community.

The HRC provides uninterrupted services to the most vulnerable rain or shine six days/week. There is also no other service provider that has a similar facility in the County that offers these unique services. Partners and public officials and even a Federal Judge have toured the facility and indicated a desire to replicate what the City of Orange is doing in other Orange County communities.

During the first Public Hearing held by the City, the Police Chief of the City of Orange shared “his department has not see one violent crime since this group took over. As you know we were at Mary’s Kitchen a lot. We had a lot of resouces desginated for fighting crime there. Now the police resources are doing what they 488
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can to help.” The Police Chief also indicated that “structure, leadership, true care is what this group provides. I truly believe in what they are doing and that is why it is successful.”
The characteristics of the service delivery system provided at the HRC are unique in nature. Service delivery system data was not available through regular channels such as the Point in Time Count or other shelter data. The data to statistically track the needs identified for the supportive services offered at the HRC was only initiated as recently at the Spring 2022 when the city contracted with the HUB as service provider under the court order mandate.

HOME ARP PRODUCTION HOUSING GOALS
The city does not plan to produce affordable rental housing units with its HOME- ARP allocation.

The city does support affordable rental housing. Over the past 2.5 years in planning the production of affordable housing, the city has committed HOME entitlement funds to four affordable housing developers to develop affordable housing, including senior housing, a group that is also at risk of homelessness due to the fixed nature of their incomes and the potential for unseen circumstances that make them vulnerable. The total number of units that will be produced by the four developments financed with HOME funds is 352.

The city also uses program income from its HOME entitlement grant and from its successor agency (former Redevelopment Agency) to assist with the development of affordable housing.

The city will also launch a Tenant Based Rental Assistance Program (TBRA) with its regular HOME fund allocation as part of the 2023-24 Annual Action Plan process to compliment the affordable housing developments that are currently under construction and those that are in the pipeline in the near future.

PREFERENCES
The City of Orange does not intend to give preferences to any population or subpopulations.
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HOME-ARP REFINANCING GUIDELINES
The City of Orange does not intend to use HOME-ARP funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME-ARP funds.

Therefore, refinancing guidelines pursuant to 24 CFR 92.l206(b) do not apply.

REFERRAL METHODS
The City does not intend to use a coordinated entry (CE) process for referrals to a HOME-ARP project or activity. Homeless individuals who seek permanent housing solutions will enter the CE process after receiving services through the COC or housing case managers at The HRC. The referrals will be for a non- HOME-ARP project.
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APPENDIX A
Public Participation Comments
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CONTINUUM OF CARE AGENCIES (COC)
Orange County Health OC Outreach and Engagement (OC O&E)  Conduct outreach efforts to provide resources to get individuals off the street.
 Regularly goes to the HRC to provide services.
 Gaps: Need more office working space.
 Comments on HRC: pleased with the HRC as it provides a “hub” for individuals to receive assistance. Coordinated effort is making a visible difference.

OC Health County of Orange Social Services
 Services include speaking to clients on a weekly basis to determine if they need assistance.
 Focus is mental health wellness, appointments, and substance use treatment (behavioral health).
 Provides weekly visits from 9 a.m. - 12:30 p.m. at the HRC by appointment or outreach.
 Have had many successes.
 Work with the county clinic.
 Full-service partnership program contracted by the County to assist with mental health, housing, education opportunities and employment.  Gaps identified: lack of shelter beds.
 Comments on HRC: The HRC provides a structure in its operation. Staff is welcoming and provides tangible solutions. It is important to keep services centralized. The One-Stop shop idea needs to stay in effect. This is a great and effective program.

HOMELESS SERVICE PROVIDERS
The Hub - Homeless Resource Center (HRC) Administrator
 Partners have made a difference. Finding Partners in the community to come in and bring their services to the site such as medical and other services to people is great. Also, seeing the community donations, investment and show up is wonderful.
 HRC Partners with Abound Food, which is a fantastic partner. Mike and his team make sure there are balanced food meals. Protein, fruit, and vegetable in every meal. Served for breakfast and lunch, hot meals brought in twice a day. Temperature is right where it needs to be for health codes.

Found there was a transition from the food they were receiving at Mary’s.

Patrons say how they feel good and give thanks for the meals. They also 492
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know the meals are not expired and are well made and they will be receiving a balanced meal. Each week go over what is being given and approve.

Also, non-perishables available when they leave, which are also balanced meals which contain vegetable, protein and the right items they need. To- go bags are also health conscious.
 Amazing work done. Impressed with all the hard work and teamwork.

HomeAid
 Gaps in service: availability of shelter beds.
 Comments on HRC: Supportive of continuing the work of the HRC.

Helping Homeless Companions
 Many clients own pets who have needs too.
 Provides assistance to healthcare, vaccinations, and spaying and neutering for pet companions of those experiencing homelessness at the HRC.  Food and other needs for pets are also provided
 Comments on HRC: Supportive of work being done at HRC.

Lestonnac
 Provides medical services to clients at the HRC, insurance does not matter.  Comes once a week. Assists 7-8 clients per visit.
 Provides glasses for homeless individuals on-site.
 Gap: Does not see a gap in services.
 Comments on HRC: Effective – interacts with homeless in the correct way.

Clients treated with respect and dignity. Efficient and ticket system is effective. Excited to be at HRC. Loves the HRC set up – just needs to be off the street. Effective because it is centralized and not at a shelter, so it doesn’t exclude those that don’t want to be in shelters – HRC has broad reach.

Love Orange
 Comments on the HRC: Supportive of services being provided.

Sisters of St. Josephs
 Requested to partner with the HRC in some capacity since helping the homeless community is part of their mission.

Assurance and American Assistance
 Provides cell phone and iPads for individuals who receive any type of State government assistance at HRC.
 Helps teach clients how to use communication devices.  Devices free from government for once year. Brand new devices. Different plan options.
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 Comes twice a week to HRC and helps 0-9 people a visit.  Gaps identified: none.
 Comments on HRC: Feels HRC is an improvement and way it is managed is effective. Good Structure.

Stay Connect.us
 Provide activated phones to qualifying populations that are subsidized by government programs.
 T-Mobile contract provides life line services, and they are the master agent  Cell phones are not sold
 Program helps connect homeless individuals to services  Happy to have the HRC to continue service delivery
Full Circle
 Supportive of operations at HRC.
 Comments on HRC: Effective.

Youth Centers of Orange
 Has seen success stories at HRC.
 Comments on HRC: Effective. Great set-up.

DOMESTIC VIOLENCE SERVICE PROVIDERS
HomeAid
 Gaps in service: availability of shelter beds.
 Comments on HRC: Supportive of continuing the work of the HRC.

Volunteers of America
 Connects vets to SSVF to get permanent housing.
 Assists vulnerable populations, including victims of domestic violence.  Operates similar to city.net.
 Services provided include outreach, connection to shelters, appointments, buses, drug and alcohol rehab.
 Ultimate goal is long-term housing and getting resources for security deposits.
 Comes once a week to HRC, started in July. Will see bout 5-10 people a day.
 Gaps identified: Does not see major gaps. Would like to see more outreach organizations, maybe city.net. Would like to see more coordinated efforts with community-based policing where they can come to establish rapport.

Would be good to have medical come more often (ie Lestonnac), maybe twice a week (all medical, dental, vision). Feels very effective and 494
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accomplishes what it is supposed to. Applauds City for doing it.

Centralization is effective.
 Comments on HRC: Has seen some results. HRC set-up effective.

Structure makes it easy to locate individuals, provide basic needs, and assist in finding jobs.

VETERANS’ GROUPS
Volunteers of America
 Connects vets to SSVF to get permanent housing.
 Assists vulnerable populations, including victims of domestic violence.  Operates similar to city.net.
 Services provided include outreach, connection to shelters, appointments, buses, drug and alcohol rehab.
 Ultimate goal is long-term housing and getting resources for security deposits.
 Comes once a week to HRC, started in July. Will see bout 5-10 people a day.
 Gaps identified: Does not see major gaps. Would like to see more outreach organizations, maybe city.net. Would like to see more coordinated efforts with community-based policing where they can come to establish rapport.

Would be good to have medical come more often (ie Lestonnac), maybe twice a week (all medical, dental, vision). Feels very effective and accomplishes what it is supposed to. Applauds City for doing it.

Centralization is effective.
 Comments on HRC: Has seen some results. HRC set-up effective.

Structure makes it easy to locate individuals, provide basic needs, and assist in finding jobs.

FAIR HOUSING
Fair Housing Foundation
 Assists with people looking to rent, at-risk for homelessness.  Biggest issues are initial rental assistance. First month and deposits for housing are needed because most people live paycheck to paycheck and don’t have enough. For some, need up to three months’ rent (security deposit is double months’ rent and then first month).
 Gap identified: When clients have unforeseen circumstances, they have no money to pay. Would be good to provide for one time assistance for unforeseen circumstances. Additionally, would be good to provide 495
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assistance with security deposits and first month’s rent. Feels need for more landlord/tenant info for those at risk, without that tenants make bad decisions.
 Comments on HRC: Asked to reach out to HRC to partner. Stated that the program sounded effective and something they would like to be involved with.

PUBLIC AGENCIES THAT ADDRESS NEEDS OF QUALIFYING POPULATIONS Orange Police Department (HEART Team, Bike Team, Homeless Outreach Specialist)
 The Police Department through its HEART Team has assisted approximately 100 individuals with a shelter placement.  The City of Orange is part of the North Orange County SPA agreement that contributed to funding shelters located in Buena Park, Placentia, and at Bridges in Anaheim. Some individuals are successful once sheltered, while others do come and go.
 Gradual process to get people off the streets.
 Gap identified: There is a demand for more housing and most people do have to wait as they have already surpassed last year’s numbers.  Comments on HRC: What is great about the HRC is that they give the Police Department structure to help those in need and get contacts that may have not been available in the past. They are taking giant steps moving forward with the help of the HRC. While the numbers do fluctuate depending on weather, funding, spaces, they are consistent, and they are on the move in the right direction.
 They’re very pleased with how the HRC is centralizing services for all qualifying populations
City of Orange Community Services Department
 The HRC partners with 50+ local organizations including non-profits, the City, the County, Orange Police Department, churches, heath/dental/vision providers and food services to provide daily hot meals, laundry, shower, clothing, mail, and social services to the unhoused.
 The HRC provides a safe space for the unhoused to come to be connected to housing and jobs and access other services that will assist them in getting out of homelessness.
 The HRC also provides preventative services to those who may be on the verge of becoming homeless, allowing them to focus their resources on maintaining their housing.
 Comments on HRC: Great plan. Supportive of operation. 496
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OC Health County of Orange Social Services
 Services include speaking to clients on a weekly basis to determine if they need assistance.
 Focus is mental health wellness, appointments, and substance use treatment (behavioral health).
 They’re very pleased with how the HRC is centralizing services for all qualifying populations
Orange County Health OC Outreach and Engagement (OC O&E)  Conduct outreach efforts to provide resources to get individuals off the street.
 Regularly goes to the HRC to provide services.
 Gaps: Need more office working space.
 Comments on HRC: pleased with the HRC as it provides a “hub” for individuals to receive assistance. Coordinated effort is making a visible difference.

AFFORDABLE AND SPECIAL NEEDS HOUSING PROVIDERS
Acacia Housing
 Appreciates seeing details of what he heard about in concept for use of HOME Funds.
 Big advocate of providing bricks and mort to permanently house the homeless.
 Advocate of integrating homeless into a larger community of similar demographic for seniors 62+.
 Currently working with the City of Orange to develop 74 affordable senior apartment units – Katella Terrace. Projects require financial support from the City.
 Please see Attachment A for prepared statement.
 Gap identified: We can’t deny the need for affordable housing.  Comments on HRC: Sounds effective.

COMMUNITY STAKEHOLDERS
Day Porter
 Clients at HRC are shown interest.
 Stated that clients speak to her and that they like HRC; clients ask her for prayers.
 Gaps identified: More bus voucher access and food variety. 497
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 Comments on HRC: Effective because noticed people’s demeanor change after going to HRC. At Mary’s Kitchen, they were drunk or high.

Employee from Starbucks
 Local business owners, specifically Starbucks coffee, very supportive of the HRC.
 Noticeable decrease in loitering outside of their business and less disruptive behavior since the establishment of the HRC.
 Due to the cost of coffee and the supplies associated with a cup of coffee, it is not an item that is served at the HRC. During the consultation process, the HRC announced a partnership with Starbucks to offer coffee a couple days per week.
 Comments on HRC: Effective and support operations.

Resident/Community Member
 Great replacement program. This is being implemented by people that know how to handle the situation.
 Very consistent and respectable way people are being treated.  Proud of the City has pulled it together so quickly. A great example of what the city can do.
 As someone who has volunteered, witnessed a lot of food coming in for people to take with them such as frosted cake. The food given at Mary’s made you think about the nutrition that people need and the right food service. Whatever food was coming in was just being put in a bag and distributed out. Nice to know there is now a method to the way the meals are served, and how the food is being organized.

QUALIFYING POPULATION INTERVIEWS
Through the interviews with the qualifying population, staff was made aware of limitations related to those seeking shelter services, including restrictions placed on families and pets. The restrictions prevent families and those with pets from being sheltered in some cases because the shelter places limitations on who they will accept.

While some individuals indicated they have some form of a plan to get into housing, most individuals interviewed stated a preference for independent living arrangements, so their only option is to be homeless or live in a car. Many described bad experiences in the shelter system that has left them with no desire to seek any type of temporary shelter. For those who do seek a temporary shelter, the shelter beds near the City of Orange are at capacity. 498
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The comments from the one-on-one interviews from the HRC clientele and general comments are as follows:

Client A
 Client F travels six days a week to the HRC using several buses and spends up to two hours each way from Los Angeles to reach Orange where he has been receiving meals and services for nearly two decades.  When asked about his housing status, he said it took him a while to become sober, but with his sobriety he is hopeful of finding a job so that he can afford an apartment and live independently.
 Indicated he travels from Los Angeles to Orange to receive two hot meals, get a warm shower, do laundry, charge his phone, receive mail, and talk to his social workers who are helping him navigate through homeless services.

Client B
 He used to own a home and had a family but lost it all to addiction.  Went to Mary’s Kitchen for 10 years, now goes to the HRC.  Uses all the services at HRC.
 The showers are clean.
 The laundry service is great.
 He applied for housing and is on a waiting list.
 Doesn’t like shelters.
 Has a case worker at the HRC that is helping him find permanent housing.  Works as a day laborer at Home Depot.
 Receives social security income.
 Uses the mail services at the HRC for housing communication.  He likes the HRC and depends on it at the moment.
 He’s trying to fight addiction to get back on his feet.  Gap identified: He would like to see more variety with food and no coffee is offered.

Client C
 Employed full-time but uses the HRC as a stepping stone.  Not housed.
 Uses a bike/bus/car for transportation.
 Was affected by COVID and it set him back.
 Likes everything about the HRC.
 Uses the mail service.

Client D
 Started at HRC September 1, 2022
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 Originally was at Riverbed five years ago then moved to Florida. Was staying in Orange in a car with his girlfriend and two dogs until breakup.  Used Mary’s kitchen before, felt that clothes more easily accessible then.  Has own health insurance.
 Trying to get into Bridges Shelter.
 Uses food/shower/laundry services.
 Had all possessions stolen; HRC provided clothing and items for him.  Has not tried to use services for employment.
 Likes that he has somewhere to go where he can get what he needs.  Receives $355 a month GR and asks for donations on street. States he will look for a job once he is in a shelter.
 Gaps identified: feels that there needs to be a better facility and more access to clothing. Stated Orange should have little, tiny homes for the homeless.
 Comments on HRC: Feels HRC has been helpful and effective.

Client E
 Has been coming to HRC since it opened.
 Has been in and out of places but gets robbed and beat up so she prefers to stay close to the Police Department. Likes that HRC is close to PD.  Has been trying to get into a shelter.
 Been dealing with a divorce for 8 years.
 Likes the HEART team.
 No income.
 Has been trying to come daily to use shower, laundry, and breakfast. Does not get lunch because needs to go to court.
 Gaps identified: coffee, but effective in that it gives her what she needs.

Client F
 Homeless since 2016.
 Stays in Anaheim in her car.
 Receives Social Security.
 Has housing vouchers Section 8 from Mercy Housing.
 Uses showers, laundry, and food services. Also uses mail services.  Has own health insurance.
 Gaps identified: More parking. Coffee and snacks such as donuts. More clothing accessibility. Would like it open on Sundays.
 Comments on HRC: Believes it is effective and efficient. Feels comfortable going to HRC and to approach workers. Feels it is great to have everything in once place.
500
50 HOME ARP ALLOCATION PLAN
Client G
 Been using services for a week.
 Feels safe at HRC. Stays in Orange on the street.
 Has been coming every day.
 Receives help from a friend and SSI $1347 a month.
 Dealing with a name change issues after identify theft.  Raised by a single mother.
 History of working as a security guard.
 Permanently disabled.
 Put name down for housing.
 Uses shower/laundry/food services and VOA.
 Gaps identified: Feels some clients should be banned and have Wi-Fi on- site.
 Comments on HRC: States volunteers are great, asked for a rain jacket and was given one along with a blanket.

Client H
 Sleeping in car since September 1. Used to stay on Riverbed.  Has health insurance. Trying to get back into Hurtt.
 Receives $898 a month. Pays for car, insurance, and helps mom. Cannot work because would not qualify for assistance.
 Multiple health issues/mental issues.
 Comes every day. Won’t go to a shelter because had bad experiences.

Stated she was sexually harassed, had stuff stolen.
 Uses mail services/showers/food services.
 Gaps identified: more food variety; coffee; more people to just listen; more clothing sizing options.
501
51 HOME ARP ALLOCATION PLAN

APPENDIX B
HOME-ARP Certifications & SF 424 Form
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To be attached at time of submission to HUD
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Orange City CouncilMarch 14, 2023

Orange City Council
March 14, 2023