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, 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 water 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 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 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 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.
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 )
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
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
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)