HomeMy WebLinkAbout2018-82 - Amending the Recycled Water Commodity Charge Effective February 1, 2019RESOLUTION NO. 2018-82
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AMENDING THE
RECYCLED WATER COMMODITY CHARGE EFFECTIVE
FEBRUARY 1, 2019
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 theservice;
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
i 4. i 3.010 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(B), 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 waterfor
an amount equal to OCWD's cost of producing and distributing Green Acres Project
water;
Resolution No. 2018-82
Page 2 of 3
WHEREAS, after the City received a notification letter from OCWD on May 31,
2017, about the increase in recycled water rates from $478.40 per acre foot to $738.00
per acre foot of recycled water, the City Council adopted Resolution No. 2017-69 which
adjusted the City's recycled water commodity rate from $0.89 per hundred cubic feet
("HCF") to $1.69 per HCF, effective January 1, 2018;
WHEREAS, in a letter to the City from OCWD dated March 20, 2018, OCWD
informed that City that, for the period commencing July 1, 2018, OCWD's cost of
producing and distributing Green Acres Project water to the City is $838.00 per acre foot;
WHEREAS, the increase (from $738.00 per acre foot to $838.00 per acre foot as
of July 1, 2018) 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(B), 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(B) 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 February 1, 2019, by adopting thefee 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 does hereby adopt the proposed monthly -recycled
water charges fee schedule attached hereto as Exhibit A, and incorporated herein by this
reference and amends the monthly -recycled water commodity charge for 2019, which
shall become effective February 1, 2019. The recycled water commodity charge through
January 31, 2019, shall be the proposed recycled monthly -water commodity charge set
forth in Exhibit A for 2018 and the recycled water commodity charge effective February
1, 2019, shall be the proposed monthly -recycled water charge for 2019 set forth in Exhibit
A. The recycled water rates shall be updated as early as January of each year pursuant
to the schedule set forth in Exhibit A. The City Council directs staff to include the
proposed monthly -recycled water rates in Exhibit A within the City's Schedule of Rates,
Resolution No. 2018-82
Page 3 of 3
Fees, and Fines or other successor document and adjust the recycled water rates
consistent with ExhibitA.
Section 2: Resolution No. 2017-69 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
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 it
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 11th day of December 2018.
ATTE T.
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CIT ATTORNEY'S :OFF CE
-- C.
Aaron C. Harp
City Attorney
Marshall 'Duff " uffield
yor
Attachment: Exhibit A — Recycled Water Commodity Charge Rate Tables
EXHIBIT A
Current (2018) 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
1 $189.15
1 $192.94
$196.80
$200.73$204.75
$204.75
4"
$230.30
$315.25
$321.56
$327.99
$334.55 1
$341.24
6"
$460.61
$630.50
1 $643.11
1 $655.98
$669.10 1
$682.48
8"
$736.98
$1,008.81
1 $1,028.99
1 $1,049.57
$1,070.56 1
$1,091.97
.r a: ge
Per HCF $2.46$0.86 $0.87 $0.89 $1.69 $1.69
Pump Station Charqe
Per HCF I none I $0.36 I $0.37 I $0.38 $0.38 $0.39
Proposed Monthly Recycled Water Charges
(2018 charges effective through January 31, 2019 - 2019 charges effective February 1, 2019)
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
T/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"
c....,.,,..a•.., rte.,.....
$736.98
$1,008.81
$1,028.99
$1,049.57
$1,070.56
$1,091.97
..Y =1 yv
Per HCF 1 $2.46 1$0.86 $0.87 1 $0.89 $1.69
Pump Station Charge
Per HCF none $0.36 $0.37 $0.38 $0.38 $0.39
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2018-82 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 11th day of December, 2018; and the same was so passed and adopted by the
following vote, to wit:
AYES: Council Member Brad Avery, Council Member Diane Dixon, Council Member
Jeff Herdman, Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor
Pro Tem Will O'Neill, Mayor Duffy Duffield
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 11th day of December, 2018.
Leilani I. Brown
City Clerk
Newport Beach, California