HomeMy WebLinkAbout03 - Resolution to Amend Recycled Water Commodity Charge - Amended ResolutionAMENDED ATTACHMENT A November 14, 2017
Agenda Item No. 3
RESOLUTION NO. 2017-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING THE
RECYCLED WATER COMMODITY CHARGE EFFECTIVE
JANUARY 1, 2018
WHEREAS, Newport Beach Municipal Code ("NBMC") Section 3.36.030(A)
provides that the cost recovery percentage for most user fee services shall be one
hundred percent (100%), with the exception of the user services listed therein and those
services for which the fee is limited by statute. NBMC Section 3.36.030(C) provides that
the City Council may amend the amount of any fee or charge for, and the actual cost of
providing, any user service upon a determination that there has been an increase or
decrease in one or more of the cost factors relevant to the calculation of the actual cost
of providing the service;
WHEREAS, on September 9, 2014, City Council adopted Ordinance No. 2014-13
adding Chapter 14.13 to the NBMC and establishing recycled water rates. NBMC Section
14.13.010 provides that the City of Newport Beach ("City") will charge and collect a
monthly fixed recycled water service charge, a monthly per-unit commodity charge for
each meter, and a monthly pump station charge from each customer who receives
recycled water by means of a pump station and allows for any or all of such charges to
be effective January 1St of each year and be charged according to the fee schedule
adopted by resolution of the City Council;
WHEREAS, pursuant to NBMC Section 14.13.010(8), the monthly commodity
charge recovers the City's cost to purchase recycled water from the Orange County Water
District ("OCWD") and, if the City's cost of recycled water increases by more than the
projected rate to purchase recycled water from OCWD, the commodity charge will be
adjusted annually to reflect the City's cost to purchase recycled water from OCWD;
WHEREAS, pursuant to Resolution No. 2014-78, the City Council adopted a fee
schedule for the City's recycled water rates, incorporated the recycled water rate
schedule into the City's master fee schedule, now referred to as the Schedule of Rates,
Fines, and Fees, and resolved that the recycled water rates shall be updated in January
of each year pursuant to the annual fee schedule attached to Resolution No. 2014-78;
WHEREAS, on June 27, 2017, the City Council approved an agreement between
the City and OCWD which established the distribution, purchase price, water quality,
operating obligations, and rules related to the purchase and distribution of reclaimed
(recycled) water from OCWD as part of OCWD's Green Acres Project ("GAP
Agreement");
WHEREAS, the GAP Agreement allows OCWD to sell the City recycled water for
an amount equal to OCWD's cost of producing and distributing Green Acres Project
water;
Resolution No. 2017 -
Page 2 of 4
WHEREAS, in a letter to the City from OCWD dated May 31, 2017, OCWD
informed that City that, for the period commencing July 1, 2017, OCWD's cost of
producing and distributing Green Acres Project water to the City is $738 per acre-foot;
WHEREAS, the significant increase (from $478.40 per acre-foot to $738 per acre-
foot as of July 1, 2017) in City's cost to purchase recycled water from OCWD requires a
comparable increase in City's recycled water commodity charge to offset OCWD's
increased cost of providing recycled water to the City;
WHEREAS, pursuant to NBMC Section 14.13.010(8), the City is authorized to
pass-through the effects of this increase charged by OCWD through an adjustment to the
commodity charge rate to be charged to its recycled water customers;
WHEREAS, in 2014, the City conducted the majority protest hearing on its
recycled water fees as required by California Constitution, article XIII D, section 6
(Proposition 218), no majority protest was lodged, the rates the City Council then adopted
included the requirement of NBMC section 14.13.010(8) to pass-through to customers
increases in the City's cost of water from OCWD as authorized by Government Code
section 53756 and, accordingly, no further protest proceeding is required at this time; and
WHEREAS, by adopting this resolution, the City Council intends to amend the
recycled water commodity charge effective January 1, 2018, by adopting the fee schedule
attached hereto as Exhibit A and incorporated herein by this reference. The City's other
recycled water rates (fixed charge and pump station charge) are restated in Exhibit A, but
remain unchanged.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows..
Section 1: The City Council hereby adopts the fee schedule attached hereto as
Exhibit A and incorporated herein by this reference and amends the recycled water
commodity charge effective January 1, 2018. The recycled water rates shall be updated
in January of each year pursuant to the schedule set forth in Exhibit A. The City Council
directs staff to include the recycled water rates in Exhibit A within the City's Schedule of
Rates, Fees, and Fines or other successor document and adjust the recycled water rates
each January consistent with Exhibit A.
Section 2: Resolution No. 2014-78 is hereby rescinded.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
Resolution No. 2017 -
Page 3 of 4
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 5: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because ii
has no potential for resulting in physical change to the environment, directly or indirectly.
Section 6: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 14th day of November 2017.
Kevin Muldoon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
i
Aaron
AttorneyCity
Attachment: Exhibit A — Recycled Water Commodity Charge Rate Tables
Resolution No. 2017 -
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Exhibit A
Current Monthly Recycled Water Charges
Fixed Charae
Meter
Size
2014
2015
2016
2017
2018
2019
5/8" or
3/4"
$13.82
$18.91
$19.29
$19.68
$20.07
$20.47
ill
$23.03
$31.53
$32.16
$32.80
$33.46
$34.13
1 '/2"
$46.06
$63.05
$64.32
$65.60
$66.91
$68.25
2"
$73.70
$100.88
$102.90
$104.95
$107.05
$109.19
3"
$138.18
$189.15
$192.94
$196.80
$200.73
$204.75
4"
$230.30
$315.25
$321.56
$327.99
$334.55
$341.24
6"
$460.61
$630.50
$643.11
$655.98
$669.10
$682.48
8"
$736.98
$1,008.81
$1,028.99
$1,049.57
$1,070.56
$1,091.97
Commodity Charge
Per HCF $2.46 $0.86 $0.87 $0.89 $0.91 $0.93
Pump Station Charge
Per HCF none $0.36 $0.37 $0.38 $0.38 $0.39
Proposed Monthly Recycled Water Charges
Fixed Charge
Meter
Size
2014
2015
2016
2017
2018
2019
5/8" or
3/4"
$13.82
$18.91
$19.29
$19.68
$20.07
$20.47
1"
$23.03
$31.53
$32.16
$32.80
$33.46
$34.13
1 '/2"
$46.06
$63.05
$64.32
$65.60
$66.91
$68.25
2"
$73.70
$100.88
$102.90
$104.95
$107.05
$109.19
3"
$138.18
$189.15
$192.94
$196.80
$200.73
$204.75
4"
$230.30
$315.25
$321.56
$327.99
$334.55
$341.24
6"
$460.61
$630.50
$643.11
$655.98
$669.10
$682.48
8"
$736.98
$1,008.81
$1,028.99
$1,049.57
$1,070.56
$1,091.97
Commodity Charge
Per HCF $2.46 $0.86 $0.87 $0.89 $1.69 $1.69
Pump Station Charge
Per HCF none $0.36 $0.37 $0.38 $0.38 $0.39