HomeMy WebLinkAbout23 - Conduct a Proposition 218 Public Hearing and Consider a Water Rate IncreaseQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
November 19, 2019
Agenda Item No. 23
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst, Utilities
Department, jrosenbaum@newportbeachca.gov
PHONE: 949-644-3057
TITLE: Conduct a Proposition 218 Public Hearing and Consider a Water
Rate Increase
ABSTRACT:
Following the support of the Finance Committee, City Council conducted a study session
on August 13, 2019 and approved the 2019 Water Rate Study on September 24, 2019.
The completed Study analyzes the cost of services, the reserve policy, and recommends
increases to the water rates. Water rates have not increased since 2014 and increases
are needed to fund the increased costs to purchase and pump water, to operate the
system and the increases to the Capital Improvement Program. Staff has noticed all
affected property owners and customers per the State Law. City Council is asked to
conduct a Public Hearing, tabulate the results of protest received and if a majority protest
is not received, approve a five-year water rate increase effective January 1, 2020.
RECOMMENDATION:
a) Conduct a public hearing to accept comments on the proposed water rates and at the
conclusion of the hearing close the 45 -day notice period;
b) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
c) Direct the City Clerk to tabulate the results of the protests received from property
owners and customers and announce the findings;
d) Waive full reading, direct the City Clerk to read by title only, and adopt Ordinance
No. 2019-16, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Chapter 14.12 (Water Rates and Charges) of the Newport
Beach Municipal Code Setting Water Rates by Resolution and Other Related
Changes; and
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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e) Adopt Resolution No. 2019-103, A Resolution of the City Council of the City of Newport
Beach, California, Establishing Water Charges Effective January 1, 2020 and Four
Years of Phased in Increases Thereto.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for the Water Rate Study and the
public noticing. The cost of the Study is approximately $150,000 and the cost of the public
noticing (Proposition 218 mailed notice) is approximately $15,000. As currently budgeted,
the Water Enterprise Fund is now operating at a structural deficit, drawing down on net
working capital reserves. Increases to customer water rates are necessary to sustain
funding for the water system including infrastructure replacements, costs to
purchase/pump water and operational expenses. If City Council adopts the new water
rates, rates would be adjusted and generally increase 7.4% each year for 5 years,
beginning January 1, 2020. The rate increases will fund the necessary Capital
Improvement Program, the increased cost of purchasing and pumping water and stabilize
the Water Enterprise Fund. The Enterprise Fund budget for revenues will be adjusted in
the upcoming fiscal year.
DISCUSSION:
On March 12, 2019, the City entered into an agreement with Raftelis Financial
Consultants, Inc., to conduct a comprehensive Water Rate Study, which included a cost
of service analysis, development of a 10 -year financial plan, and thorough review of the
City's Reserve Policy for the Water Enterprise Fund. The Study's findings and
recommendations include water rate adjustments to cover operations and capital
improvements, as well as provide funding to meet City Council Reserve Policy F-2, with
modifications to the policy. The study addressed water operations, capital expenditures
and revenue shortfalls, predicting the Water Fund reserve balances would dip below the
minimum target over the next few years without the rate increases. A copy of the full 2019
Water Rate Study is available on the City's website at:
https://www.newportbeachca.gov/qovernment/departments/utilities/water-services/new-
IAMtPr-ratPS
On May 16, 2019, and June 27, 2019, the Finance Committee delved into the water rate
study financial analysis of the Water Enterprise Fund, including the reserve policy and
preparing for future drought concerns. Also discussed were typical steps and decision
points for evaluating water rates, the different types of water rate structures, and rate
options concerning fixed and variable revenues. At the conclusion of the June
presentation, following in-depth discussion, the Finance Committee unanimously
recommended that the Water Rate Study be moved to City Council for further discussion
and action.
On August 13, 2019, City Council held a study session to review the water rate study.
Then, on September 24, 2019, the Utilities Department and Raftelis presented the
findings and recommendations of the Final Water Rate Study for proposed water rate
increases.
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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The City Council approved the 2019 Water Rate Study, set a public hearing for today,
November 19, 2019, and authorized the mailing of notices to Newport Beach property
owners and water customers to inform them of the proposed water rates in compliance
with State law. According to the proof of mailing, on October 1, 2019, the City mailed
27,324 notices to Newport Beach property owners and water customers.
In accordance with Proposition 218, local agencies are required to provide a 45 -day
notice period whereby property owners may submit in writing a protest objecting to the
proposed water rates. At the conclusion of the notice period, the City is required to
conduct a public hearing and tabulate the protests received. In the absence of a majority
of property owners objecting to the rate, City Council may adjust the rate and/ or structure.
The 45 -day period will conclude at the end of the public hearing on tonight's agenda,
November 19, 2019.
Components of the 2019 Water Rate Study:
Executive Summary:
• The Water Enterprise Fund is now operating at a structural deficit, drawing down
on net working capital reserves in order to fund the current Water System Capital
Improvement Program.
• Water Rates have not increased since 2014.
• Increased replacement and rehabilitation of the water system pipes, wells and
components (the Capital Improvement Program) are needed as recommended by
the Water Master Plan (a 40% increase, averaging $7.2 -million per year).
• The cost of pumping groundwater has increased by 73% and the cost of
purchasing imported water has increased by 18% since 2014. Operational costs
for materials, supplies, labor, and electricity since 2014 have also increased.
• A comprehensive Water Rate Study has been completed and the Finance
Committee has reviewed the information.
• Water rate increases are recommended to properly sustain the water system; 7.4%
increases each year for 5 years.
• The average rate increase for the first year is approximately $3.38/month or
$40.56/year per household
Water System Background:
The Utilities Department provides safe and reliable water for drinking, irrigation, and fire
protection to Newport Beach residents, businesses and visitors. These essential services
are accomplished through a strategic combination of dedicated in-house licensed staff
operators (on-call 24 hours a day) and highly qualified contractors. Behind the scenes,
the Department is responsible for all water purchases/production, treatment, disinfection,
water quality testing, regulatory compliance, field customer service, and emergency
response. The water system is supported by the Public Works Department for the Capital
Improvement Program and the Finance Department for utility billing and customer
service.
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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The system includes approximately 300 miles of water pipelines, 200 million gallons of
water storage, 26,000 service connections (water meters), 17 water booster pumps,
42 pressure reducing stations, 2,700 fire hydrants, 8,100 water valves, 12 interconnects
and 4 groundwater wells.
All revenue and expenditures related to water service provided by the City of Newport
Beach is contained in the Water Enterprise Fund. The Enterprise Funds are separate
from the General Fund or any other fund the City uses to operate the City. Funding for
maintenance and replacement activities is collected from ratepayers through the
Municipal Services bill.
Four main expenditure categories of the water enterprise are important to providing water
service. Each of the four components also lists the percentage of the total annual water
system expenditures (up to 98%):
• The Cost to Purchase and Pump Water (35%) includes the direct cost for the
rights to pump groundwater and to buy imported surface water. Approximately 75%
of Newport's water is pumped from groundwater and 25% is purchased from
Metropolitan Water District primarily coming from the Colorado River and Lake
Oroville.
• Operations (30%) includes day-to-day operations and maintenance and is
comprised of salaries, contract maintenance, repairs, materials, permits, outside
agency fees, electricity, and professional services.
• Replacement (21 %) includes the annual capital replacement or rehabilitation of
aging infrastructure and recommended improvements per the recently completed
2019 Water Master Plan. The Master Plan estimates approximately $7.2 million in
total annual capital improvements, a 40% increase from the previous 2009 Water
Master Plan.
• Customer Service, Billing, and Administration (12%) includes the meter
reading, invoicing, customer service, administration, and internal service charges.
In addition, a major component of the fund are the reserves:
• Reserves are established by City Council Policy F-2 where the minimum level is
set annually at a dollar amount equal to fifty percent of the operations budget. The
reserves provide rate stabilization, funding for needed capital improvements, and
funding for a catastrophic failure of the infrastructure. Changes are recommended
to the Reserve Policy and are discussed in the recommendation of the Study.
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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Results and Recommendations of the Study:
Reserve Policy for the Water Enterprise Fund:
The previous 2009 Water Rate Study and City Council Policy F-2 established a dollar
amount equal to fifty percent of the operations budget plus a capital contingency as the
minimum reserve level for the fund. The Study and the Finance Committee reviewed this
and recommended the following:
• O&M Reserve — for Operating Cash Flow
> 33% of operating expenses (or 4 months of expenses)
• Capital Reserve — for Capital Working Capital
> 75% of 5 -year average CIP
• Rate Stabilization Reserve — for unexpected water demand reduction or
unexpected water supply cost increases, emergencies, and non -budgeted CIP
capital projects, causing net revenue loss for the Water Fund
> Recommended Rate Stabilization Reserve Target Balance: $2.7M
The Water Rate Study was constructed with this proposed reserve policy. The Policy
takes into account the different types of risk the water utility faces, including future cyclical
drought conditions. The new Reserve Policy total amount is similar to the existing policy.
However, it better articulates the types of reserve uses. As currently planned, the budget
anticipates drawing down on net working capital reserves over the next three years along
with the proposed rate increases to stay above the minimum reserve level.
Financials, Rate Structure and Rate Increase:
Water users are billed for two components; the size of their meter, known as the fixed
charge (or standby/ready to serve charge) and the commodity or water usage charge.
In order to fairly and equitably recover the cost of providing water to our customers, the
rate study looked at each of these charges, their proportionality and recommended
structured rate levels consistent with industry standard. The Finance Committee
recommended that most of the rate increase in the first year be adjusted in the fixed
meter charges as opposed to the commodity charge. This better matches actual fixed
expenditures, better stabilizes the Water Enterprise Fund and still maintains affordability
and water conservation goals.
Water rates, as shown in Table 1 on the next page and in the report, are proposed to
be adjusted proportionally and increased 7.4% each year for the next 5 years. The
average residential customer, who uses approximately 10 billing units, is expected to
see a $3.38 per month increase during the first year on their water bill. Then, a 7.4%
increase each year for the next four years. If rates had been adjusted over the last five
years to match inflationary water costs, the annual percentage increase would have
been much lower. (A billing unit is 1-HCF or 100 -cubic feet or 748 gallons).
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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Table 1: Proposed 5-vear (Potable) Water Rates:
Rate Change
FY 019
RatesCurrent
FY2020
r%
Proposed
FY 2021
7.40%
Proposed
7.40%
Proposed
7.40%
Proposed
7.40%
Proposed
Water Meter Size
(inches)
5/8
$17.27
$20.35
$21.86
$23.48
$25.22
$27.09
3/4
$17.27
$20.35
$21.86
$23.48
$25.22
$27.09
1
$28.79
$31.54
$33.88
$36.39
$39.09
$41.99
11/2
$57.58
$59.47
$63.88
$68.61
$73.69
$79.15
2
$92.12
$93.00
$99.89
$107.29
$115.23
$123.76
3
$172.73
$246.68
$264.94
$284.55
$305.61
$328.23
4
$287.88
$422.71
$454.00
$487.60
$523.69
$562.45
6
$575.76
$897.73
$964.17
$1,035.52
$1,112.15
$1,194.45
8
$921.22
$1,568.33
$1,684.39
$1,809.04
$1,942.91
$2,086.69
10
$1,655.90
$2,350.70
$2,524.66
$2,711.49
$2,912.15
$3,127.65
12
$2,663.48
$2,965.44
$3,184.89
$3,420.58
$3,673.71
$3,945.57
Per Dwelling
Unit Charge
$1.00
N/A
N/A
N/A
N/A
N/A
Usage Charges
Potable Water
$3.08
$3.11
$3.35
$3.60
$3.87
$4.16
Sample Customer Bills impacts
Monthly WaterBilts. 5/6 -inch meter
$200
$180
$160
$140
$120
$100
$80
$ o ■■
So
10 HCF 20 HCF 30 HCF 40 HCF 50 HCF
■ Current Bills $48.07 $78.87 $109.67 $140.47 $171.27
■ Proposed Bills $51.45 $82.55 $113.65 $144.75 $175.85
Impact $ $3.38 $3.68 $3.98 $4.28 $4.58
Impact % 7.0% 4.7% 3.6% 3.0% 2.7%
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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Fire Service Water Rates:
The City's water system also has approximately 460 Fire Service customer connections.
These are typically the large red above ground pipes and valves seen in front of
businesses or in parking lots. This pressurized water is supplied on a standby basis to
provide additional fire -fighting water if needed by the property. The Fire Service Water
rates recovers the proportional cost to provide fire protection capacity, metering and
billing. They have also been adjusted to be compliant with industry standards. Most fire
services do not use water regularly. However, if water is used through the fire service,
the standard commodity potable water rate is used. Fire Service Water Rates are shown
in Table 2 below:
Table 2: Proposed 5-vear Fire Protection Service Water Rates:
2019FY
Current
ENNIL Rates
Fire Service Connection
(inches)
5/8 $3.13
2020
Proposed
$10.41
FY 2021
Proposed
$11.19
FY 2022
Proposed
$12.02
FY 2023
Proposed
$12.91
FY 2024
Proposed
$13.87
1
$5.00
$10.59
$11.38
$12.23
$13.14
$14.12
11/2
$7.50
$11.07
$11.89
$12.77
$13.72
$14.74
2
$10.00
$11.87
$12.75
$13.70
$14.72
$15.81
21/2
$12.50
$13.09
$14.06
$15.11
$16.23
$17.44
3
$15.00
$14.76
$15.86
$17.04
$18.31
$19.67
4
$20.00
$19.78
$21.25
$22.83
$24.52
$26.34
6
$30.00
$37.72
$40.52
$43.52
$46.75
$50.21
8
$40.00
$68.70
$73.79
$79.26
$85.13
$91.43
10
$50.00
$115.28
$123.82
$132.99
$142.84
$153.42
12
$60.00
$179.85
$193.16
$207.46
$222.82
$239.31
Recycled Water System Rates:
The City provides recycled (non -potable) water to irrigate parks, certain landscaping,
center medians, and golf courses encompassing 2-3% of the City's total water use. The
City purchases recycled water from the Orange County Water District (OCWD) through
the project known as Green Acres Project. The recycled water rates recover the direct
costs to purchase the recycled water, and the proportional costs regarding capacity,
metering, and billing. Certain users also have exclusive pump stations to increase the
flow and pressure of the water to meet watering needs. Those users are charged the
direct charges associated with the pump stations. In general, recycled water remains
less expensive than potable water. Recycled Water Rates are shown in Table 3 on the
next page -
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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Table 3: Proposed 5 -year Recycled
Water Rates:
FY 019
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
Recycled
Current
Water Se
Water Meter
Proposed
Rates
Proposed
Proposed
Proposed
Proposed
Size (inches)
5/8
$20.47
$10.34
$11.11
$11.94
$12.83
$13.78
3/4
$20.47
$10.34
$11.11
$11.94
$12.83
$13.78
1
$34.13
$14.85
$15.95
$17.14
$18.41
$19.78
1 1/2
$68.25
$26.10
$28.04
$30.12
$32.35
$34.75
2
$109.19
$39.61
$42.55
$45.70
$49.09
$52.73
3
$204.75
$101.54
$109.06
$117.14
$125.81
$135.12
4
$341.24
$172.47
$185.24
$198.95
$213.68
$229.50
6
$682.48
$363.88
$390.81
$419.73
$450.80
$484.16
8
$1,091.97
$634.09
$681.02
$731.42
$785.55
$843.69
RW Usage
$1.92
$2.05
$2.12
$2.13
$2.21
$2.29
Charge
Pump Station
$0.39
$0.53
$0.57
$0.62
$0.67
$0.72
Irl ILII Y C
Proposition 218 Procedures
Under the Proposition 218 requirements, the rates cannot be increased if a majority of
the property owners submit valid written protests to the City Clerk by the close of the 45
day notice and protest period. At the conclusion of the public hearing, the City Clerk shall
complete the tabulation of all written protests received, including those received during
the public hearing and shall report the results to the City Council. The Clerk may advise
the City Council of the absence of a majority protest without determining the validity of all
protests. Notices were also sent to all water customers who may not be property -owning
customers and City Council may consider their protests; however, they will not be counted
as part of the requirement. Only one protest is allowed per property parcel. At this point,
if a majority of property owners does not submit a valid written protest, City Council could
vote to adopt the new rates and structure.
Implementation of Ordinance Changes
The existing rates are identified in the NBMC (Chapter 14.12). Notwithstanding a majority
protest, City Council can consider verbal testimony from anyone and written protests from
non -property owners and decide to approve the proposed rates. Should the proposed
rates be approved, staff recommends Council conduct the second reading of Ordinance
No. 2019-16, amending the municipal code to remove the existing rates from NBMC
Chapter 14.12 and include them in the City's Master Fee Schedule or successor named
document (currently, the Schedule of Rents, Fines and Fees).
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Conduct a Proposition 218 Public Hearing and Consider a Water Rate Increase
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A redlined version of the NBMC amendment showing the existing Chapter 14.12.
(Attachment A) and a final, clean version of Chapter 14.12 (Attachment B) are attached
for Council's review. In addition to the second reading of the ordinance, staff is presenting
to Council Resolution No. 2019-103, adopting the water rates consistent with the Raftelis
study. If the new water rates are approved, and the Ordinance and Resolution updating
the City's water rates and charges amounts are adopted, the new water rates would
become effective on January 1, 2020 and for every year thereafter with the final
adjustment occurring on January 1, 2024
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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.
z[9)t1INIkiLes
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Notice of this hearing was published in the Daily Pilot at least 10 days before the
scheduled meeting, consistent with the provisions of the Municipal Code. The City mailed
27,324 (detailed and color copied) public hearing notices to all affected Newport Beach
property owners and water customers. Utilities Department staff presented information
regarding water rates at recent town hall, community association, and community group
meetings. In addition to the Finance Committee and City Council meetings, staff also
made formal presentations to the Chamber of Commerce and to the City's Water
Quality/Coastal Tidelands Committee. The Water Rate Study has been posted on the
City's webpage since August 29, 2019. A detailed webpage with chronology of the report
and presentations is posted on the City's water rates webpage.
ATTACHMENTS:
Attachment A — NBMC Chapter 14.12 (redline)
Attachment B — Ordinance No. 2019-16
Attachment C — Resolution No. 2019-103
Attachment D — Presentation
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ATTACHMENT A
Chapter 14.12
WATER RATES AND CHARGES*
Sections:
14.12.010
Service Fees.
14.12.020
Water Rates Established.
14.12.050
Meter Installation.
14.12.060
Building Construction Purposes.
14.12.070
Nonspecified Uses.
14.12.080
Private Fire Lines.
14.12.085
Establishing Service.
14.12.090
Delinquent Water Service Discontinuance and Fees.
14.12.095
Customer Requests.
14.12.100
Due Date.
14.12.105
Change of Address.
14.12.110
Delinquent Notice.
14.12.120
Discontinuance Notice.
14.12.125
Delinquent Water Service Restoration.
14.12.130
Deposit Requirements.
14.12.135
Service Interference.
14.12.140
Customer Request for Service Discontinuance.
14.12.150
Third -Party Notification.
14.12.160
Multi -Unit Residential Structures and Mobile Home Parks.
14.12.170
Unsafe Equipment.
14.12.010 Service Fees.
A. The fees for the installation of water services, water meters or water services
including meters, or changing the size of those services already in place, shall be paid
in advance.
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B. The installation fee for a water service shall be the City's costs including all labor
and materials. The installation fee shall be as established by the Utilities pal
Qperatien-s Department, and the cost shall be paid to the Finance Department by the
person applying for such installation before the work of connecting the main with the
property is begun.
C. The installation fee for a new meter or change in meter size to an existing water
service is identified by City Council resolution.
14.12.020 Water Rates Established.
A. There shall be charged and collected a monthly fixed water service charge,
established by resolution of the City Council, from each customer for each meter. The
fixed water service charge recaptures the City's costs to operate and maintain the water
system, innlurdinn required nonital infrastrU Gt ire imnrevementc. Foxed water corvine
following cr•hed ale•
Water Meter S07e CV2n10 FY2011 CV2n12 FY2013 FY2014
5!8 or 3/4" $8-27 $13.09 $1511 $16-63 $17.27
V $13.78 $21.82
$151.14 $166.30 $172.73
4
6" $275.50 $436.37 $503.91 $554.32 $575.76
$921.22
4W! $ 7� $4 ')�� p � Q N 4-5 $4 Fez $1 Fro
4Z $� ,-2?4.4? $Z,44$Z,,33� $w2564:27 $2;663:43
For each I'ving .,'f .,eXGess of one per voter meter, per month $_1_88
23-11
B. There shall be charged and collected a T#e-commodity charge., established by
resolution of the City Council, for water supplied to consumers through a meter., other
than pursuant to a Written r--.n-ni.raGt approved by the City GounGil, shall be effeGtive
janin a stoTeaGh year. Gem h�ovGO
y Gharge nrimariI��eGers-the
purGhased water by the City for its Gusterners. and shall be Gharged aGGording to the
follo\A mRg cashed ale. l�(A1 .
- rv� rv� rv� rv� €Y2014
Commodity Charge $N �
14.12.050 Meter Installation.
The City, as a condition of water service, shall have the right to install water meters on
any and all water services, and the charges for water used through the meter shall be in
accordance with the applicable meter rates established by resolution of the City
Councll.SeGtien 14.12.020.
14.12.060 Building Construction Purposes.
Service may be made to a lot or parcel of land on which a building is being constructed
for construction purposes only from the time the building permit is issued until the
building is completed or until the time a water meter is installed to serve such lot or
parcel, whichever first occurs at the rate established by resolution of the City Council.;
for a flat rate of twenty five dollars ($25.00) ner month for eanh gale thou sand (2,000)
square feet of floor sparse or frantion thereof of G inh building.
14.12.070 Nonspecified Uses.
Water used for all other purposes not hereinbefore enumerated shall be furnished and
charged at either existing meter rates or at a special rate to be fixed by the City Council
under separate agreement with the consumer.
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14.12.080 Private Fire Lines.
Fees for private fire line service shall be charged at a rate established by resolution of
the City Council. of fide dollars ($5.00) per inch diameter per month per coriir+o
If such line is found tapped for domestic use, a meter shall be installed on such service
at the expense of such consumer and the regular meter rates shall be charged
thereafter. The right shall be reserved to disconnect such fire service from the City's
main by the direction of the City Council on recommendation of the City Manager.
14.12.085 Establishing Service.
A. When establishing an account the customer shall pay a fee as set forth by
resolution of the City Council to establish water service in the customer's name at the
property. The fee shall be payable upon application for water service.
B. An application for water service, as provided by the Revenue Division of the
Finance Department, shall be used for the purpose of establishing water service into a
new customer's name. Property owners may enter into a continuous service agreement
which will authorize the transfer of water service into the name of the property owner
upon a tenant's notice to discontinue service. Property owners shall be responsible for
all water service charges at their premises. Water service will not be established in the
name of a customer other than the property owner without the written authorization of
the owner, or the owner's authorized representative.
C. Upon application and payment of an establishment fee, the water will be turned on.
D. A customer's newly established service may be discontinued for nonpayment of a
bill for services previously rendered to the customer at any location served by the City
provided such bill is not paid within fifteen (15) days after mailing of a notice of
discontinuance of water service stating that present service will be discontinued for
nonpayment of such bill for prior service.
14.12.090 Delinquent Water Service Discontinuance and Fees.
A. Water service to any premises may be discontinued because of nonpayment of a
bill or violation of any of the provisions of this chapter, or ordered turned off by the
owner or tenant, or for failure to establish a water service agreement with the City.
B. The City is not responsible or liable for damage done to the customer's premises
that may result from the discontinuance or restoration of water service pursuant to this
chapter.
23-13
C. Service may not be discontinued for nonpayment on any Saturday, Sunday, legal
holiday or at any time during which the business offices of the City are not open to the
public or in any of the following situations:
1. During the pendency of an investigation by the City of a customer dispute or
complaint.
2. When a customer has been granted an extension of the period for payment of
a bill.
3. When such discontinuance would be especially dangerous to the health of the
customer or a full-time resident of the customer's household. Certification from a
licensed physician, public health nurse or social worker may be required by the
City.
4. When the customer or full-time resident of the customer's household is
temporarily unable to pay for such service and is willing to arrange installment
payments satisfactory to the City, including arrangements for prompt payment of
subsequent bills.
D. The fee for discontinuance shall be the City's costs including all labor and materials
and is identified by Council resolution.
14.12.095 Customer Requests.
Any residential customer who has initiated a complaint or requested an investigation
within ten (10) days of receiving the disputed bill, or who has, before discontinuance of
service, made a request for extension of the payment period of a bill asserted to be
beyond the means of the customer to pay in full within the normal period for payment,
shall be given an opportunity for review of the complaint, investigation, or request by the
City. The review shall include consideration of whether the customer shall be permitted
to amortize any unpaid balance of the delinquent account over a reasonable period of
time, not to exceed twelve (12) months.
Any customer whose complaint or request for an investigation has resulted in an
adverse determination by the City's Revenue Division may appeal the determination to
the Finance Director or his or her designee.
No discontinuance of service shall be affected for any customer complying with an
amortization agreement, provided the customer also keeps the account current as
charges accrue in each subsequent billing period. If a residential customer fails to
comply with an amortization agreement, the City shall not discontinue service without
giving notice to the customer at least forty-eight (48) hours prior to discontinuance of the
conditions the customer is required to meet to avoid discontinuance, but this notice
does not entitle the customer to further investigation by the City.
23-14
14.12.100 Due Date.
All customers whose premises are connected to the municipal water system shall be
billed on a regularly scheduled basis and all charges shall be received within nineteen
(19) days after the date of the mailing of the municipal services statement.
14.12.105 Change of Address.
Failure to receive mail will not be recognized as a valid excuse for failure to pay charges
when due. It is the customer's responsibility to notify the Revenue Division of any
changes in mailing address or customer information.
Change in the ownership of a property supplied with City water and changes in
customer status must be filed in writing at the Revenue Division on forms provided for
that purpose.
14.12.110 Delinquent Notice.
When a municipal services statement has become past due, a delinquent notice will be
mailed with a fifteen (15) day discontinuance of water service advisement. In addition to
the past due charges, a penalty fee equal to ten percent of the delinquent amount past
due will be added.
14.12.120 Discontinuance Notice.
At least forty-eight (48) hours prior to the discontinuance of water service, the City shall
serve an additional notice of intent to discontinue water service on the premises where
service is supplied, either by mail or in person. Every notice of intent to discontinue
water service shall include the following information:
1. The name and address of the customer whose account is delinquent.
2. The amount of the delinquency.
3. The date by which payment or arrangements for payment is required in order
to avoid service discontinuance.
4. The procedure by which the customer may initiate a complaint or request an
investigation concerning services or charges.
5. The procedure by which the customer may request amortization of the unpaid
charges.
23-15
6. The procedure for the customer to obtain information on the availability of
financial assistance, including private, local, State, or Federal sources, if
applicable.
7. The telephone number of the representative of the City's Revenue Division
who can provide additional information or institute arrangements for payment.
14.12.125 Delinquent Water Service Restoration.
A. Service that has been discontinued may not be restored until payment of all
delinquent water service charges, including the restoration charge and one hundred
dollar ($100.00) fine, have been received by the Finance Department.
1. Upon payment, service shall be restored during regular or non -regular working
hours.
2. The restoration charge for meter turn on during regular and non -regular work
hours is identified by Council resolution.
3. Regular work hours are Monday through Thursday, 7:00 a.m. to 4:30 p.m.,
and Friday, 7:00 a.m. to 3:30 p.m.
B. Any service wrongfully discontinued shall be restored without charge for the
restoration of service, and a notation thereof shall be mailed to the customer at the
customer's billing address. A credit shall be applied to the customer's next municipal
services bill. The credit shall be set by Council ordinance.
14.12.130 Deposit Requirements.
A. In the event that the applicant for water service is not the owner of the property to
be supplied with water or does not own the improvements thereon, and the property is
located in a nonresidential zone, a deposit shall be required equivalent to one and one-
half (1 1/2) times the average billing for the facility or for the user classification
applicable to the property, as determined by the Revenue Division Manager.
B. In the event that the water service customer has had his/her water service
discontinued twice for nonpayment, a deposit shall be required equivalent to two times
the average regularly scheduled billing for the customer before water will be restored.
Water service will not be discontinued for nonpayment until the amount of any deposit
made to establish credit for that service has been fully absorbed.
14.12.135 Service Interference.
23-16
It is unlawful for any person to receive water after service discontinuance by the City,
without full compliance with the provisions of this chapter.
14.12.140 Customer Request for Service Discontinuance.
A. Whenever a customer desires to discontinue service, the customer shall give not
less than two working days' (forty-eight (48) hours) written notice thereof to the
Revenue Division of the Finance Department.
B. In accordance with such notice, the City shall read the water meter, prepare a
closing statement of all unpaid bills for water furnished by the City to the customer up to
that time and, unless a current continuous service agreement with the property owner is
in place, shut off the water to the premises. If the customer has a deposit with the City,
the Finance Department will return the balance, after deducting any unpaid charges.
14.12.150 Third -Party Notification.
The City shall make available to its residential customers who are dependent adults as
defined in paragraph (1) of subdivision (b) of Section 15610 of the Welfare and
Institutions Code, a third -party notification service, whereby the City will attempt to notify
a person designated by the customer to receive notification when the customer's
account is past due and subject to discontinuation. The notification shall include
information on what is required to prevent discontinuance of service. The residential
customer shall make a request for third -party notification on a form provided by the City,
and shall include the written consent of the designated third party. The third -party
notification does not obligate the third party to pay the overdue charges, nor shall it
prevent or delay discontinuance of service.
14.12.160 Multi -Unit Residential Structures and Mobile Home Parks.
Whenever the City furnishes either individual metered or master metered water service
to residential occupants in a multi -unit residential structure or mobile home park, where
the owner, manager or operator is listed as the customer of record, the City shall make
a good faith effort to inform the residential occupants, by means of a written notice,
when the account is in arrears, that service will be terminated at least fifteen (15) days
prior to such discontinuance. Such notice shall further inform the residential occupants
that they have the right to become customers to whom service will then be billed,
without being required to pay any amount which may be due on the delinquent account.
The City shall not be required to make water service available to the residential
occupants unless each residential occupant agrees to the terms and conditions of
service. However, if one or more of the residential occupants are willing and able to
23-17
assume responsibility for the entire account to the satisfaction of the City, or if there is a
physical means legally available to the City of selectively discontinuing service to those
residential occupants who have not met the requirements of the City, the City shall
make water service available to those residential occupants who have met those
requirements.
14.12.170 Unsafe Equipment.
The City may refuse to establish or may discontinue service to any customer if any part
of the plumbing or other equipment, or use thereof, is determined by the City to be
unsafe or in violation of applicable laws, ordinances, rules or regulations of public
authorities, or of any condition existing upon the customer's premises shall be
determined to endanger the City's service facilities, until it shall have been put in a safe
condition or the violation remedied. The City does not assume any responsibility of
inspecting or repairing the customer's plumbing or other equipment or any part thereof
and assumes no liability therefor.
23-18
ATTACHMENT B
ORDINANCE NO. 2019-16
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AMENDING CHAPTER
14.12 (WATER RATES AND CHARGES) OF THE
NEWPORT BEACH MUNICIPAL CODE SETTING WATER
RATES BY RESOLUTION AND OTHER RELATED
CHANGES
WHEREAS, the City of Newport Beach ("City") charges users of the City's water
system both a fixed meter charge and a variable commodity -use charge to pay for the
operation and maintenance of the City's water system, including required capital
infrastructure improvements;
WHEREAS, the City's current water rates are codified in Chapter 14.12 (Water
Rates and Charges) of the Newport Beach Municipal Code;
WHEREAS, on March 12, 2018, the City's Utilities Department retained Raftelis
Financial Consultants, Inc. to prepare a water rate study in order to analyze the current
cost to the City of providing water services and recommend an adjustment to the current
water rates;
WHEREAS, on November 19, 2019, the City Council will hold a public hearing on
the proposed water rates in accordance with California Constitution Article XIIID, Section
6, more commonly referred to as Proposition 218; and
WHEREAS, by this ordinance, the City Council intends to amend applicable
provisions of Chapter 14.12 setting water rates via resolution adopted by the City Council
instead of by ordinance and making other related changes.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Section 14.12.010(6) (Service Fees) of the Newport Beach
Municipal Code is hereby amended to read as follows:
B. The installation fee for a water service shall be the City's costs including all labor and
materials. The installation fee shall be as established by the Utilities Department, and the
cost shall be paid to the Finance Department by the person applying for such installation
before the work of connecting the main with the property is begun.
Section 2: Section 14.12.020 (Water Rates Established) of the Newport Beach
Municipal Code is hereby amended to read as follows:
23-19
Ordinance No. 2019 -
Page 2 of 3
A. There shall be charged and collected a monthly fixed water service charge,
established by resolution of the City Council, from each customer for each meter. The
fixed water service charge recaptures the City's costs to operate and maintain the water
system.
B. There shall be charged and collected a commodity charge, established by resolution
of the City Council, for water supplied to consumers through a meter.
Section 3: Section 14.12.050 (Meter Installation) of the Newport Beach
Municipal Code is hereby amended to read as follows:
The City, as a condition of water service, shall have the right to install water meters on
any and all water services, and the charges for water used through the meter shall be in
accordance with the applicable meter rates established by resolution of the City Council.
Section 4: Section 14.12.060 (Building Construction Purposes) of the Newport
Beach Municipal Code is hereby amended to read as follows:
Service may be made to a lot or parcel of land on which a building is being constructed
for construction purposes only from the time the building permit is issued until the building
is completed or until the time a water meter is installed to serve such lot or parcel,
whichever first occurs at the rate established by resolution of the City Council.
Section 5: Section 14.12.080 (Private Fire Lines) of the Newport Beach
Municipal Code is hereby amended to read as follows:
Fees for private fire line service shall be charged at a rate established by resolution of the
City Council.
If such line is found tapped for domestic use, a meter shall be installed on such service
at the expense of such consumer and the regular meter rates shall be charged thereafter.
The right shall be reserved to disconnect such fire service from the City's main by the
direction of the City Council on recommendation of the City Manager.
Section 6: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 7: If any section, subsection, sentence, clause or phrase of this
ordinance 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 ordinance. The City
Council hereby declares that it would have passed this ordinance and each section,
subsection, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses and phrases be declared invalid or unconstitutional.
23-20
Ordinance No. 2019 -
Page 3 of 3
Section 8: The City Council finds the approval of this ordinance is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(1),
15060(c)(2) and 15060(c)(3) of the California Code of Regulations, Title 14, Division 6,
Chapter 3 ("CEQA Guidelines"), in that the ordinance setting water rates via resolution
does not involve the exercise of discretionary powers by the City and will not result in a
direct or reasonably foreseeable indirect physical change in the environment. Additionally,
the ordinance is not a "project" as defined by Section 15378 of the CEQA Guidelines for
the reasons set forth above.
Section 9: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall remain in full force and effect.
Section 10: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published once in the official newspaper of the City. Although authorized to go into effect
thirty (30) days after its adoption, this ordinance shall go into effect on January 1, 2020.
This Ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 5th day of November, 2019, and adopted on the 19th day
of November, 2019, by the following vote, to -wit:
AYES:
10E-AT&I
ABSENT:
DIANE B. DIXON, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
'AARON C. RP, CITY ATTORNEY
23-21
ATTACHMENT C
RESOLUTION NO. 2019-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ESTABLISHING
WATER RATES AND CHARGES EFFECTIVE JANUARY
1, 2020 AND FOUR YEARS OF PHASED IN INCREASES
THERETO
WHEREAS, on March 12, 2019, the City of Newport Beach ("City") retained
Raftelis Financial Consultants, Inc., ("Raftelis") to conduct a Water Rate Study ("Study")
to analyze the current cost of providing water services to property owners and customers,
develop a ten-year financial plan and recommend an appropriate rate structure and water
charges;
WHEREAS, on May 16, 2019 and June 27 2019, the City's Utilities Department
("Utilities") and Raftelis presented the findings and recommendations of the Study to the
City's Finance Committee, and after thorough discussion and review, the Finance
Committee unanimously voted to forward the Study to the City Council of the City of
Newport Beach ("City Council") for final review and approval;
WHEREAS, on August 13, 2019, Utilities and Raftelis presented a draft of the
Study's findings and recommendations during a City Council study session,
WHEREAS, on September 24, 2019, Utilities and Raftelis presented the final
Study for City Council approval and requested City Council set a public hearing and
authorized mailing of 27,000 notices to property owners and water customers,
respectively, to inform them of the proposed water rates and to open the 45 -day notice
period in accordance with Proposition 218;
WHEREAS, on November 19, 2019, following a public hearing held in conformity
with Proposition 218, the City Council determined that no majority protest against the
proposed new water rates and charges existed;
WHEREAS, additionally on November 19, 2019, the City Council conducted a
second reading and adopted Ordinance No. 2019-16 amending Chapter 14.12 (Water
Rates and Charges) of the Newport Beach Municipal Code to set water rates and charges
by resolution of the City Council; and
WHEREAS, by adopting this resolution, the City Council intends to establish water
rates and charges effective January 1, 2020 and phased in increases over a four (4) year
period through January 1, 2024, pursuant to the schedule attached hereto as Exhibit "A"
and incorporated herein by this reference.
23-22
Resolution No. 2019 -
Page 2 of 3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby establish the water rates and charges
effective January 1, 2020 and phased in increases thereto through January 1, 2024, as
identified in Exhibit "A." The water rates and charges shall become effective according to
the schedule in Exhibit "A" which is incorporated herein by this reference. The City Council
directs staff to include the newly established water rates and charges and phased -in
increases thereto, as adopted by this resolution, in the City's Schedule of Rents, Fines
and Fees, or other successor document thereto as amended from time to time.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 3: 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 4: 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 as set forth in California Code of Regulations, Title 14, Division
6, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
23-23
Resolution No. 2019 -
Page 3 of 3
Section 5: This resolution shall take effect on January 1, 2020, and the City Clerk
shall certify the vote adopting this resolution.
ADOPTED this 19th day of November 2019.
Diane B. Dixon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
9t,-.-- C . 9
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A — Current and Newly Adopted Water Rates and Charges
23-24
EXHIBIT A
Table 1: Water Services
Effective
Effective
Effective
Effective
Effective
Meter Size Inch
Current
Rates
JAN 1, 2020
JAN 1,
2021
JAN 1,
2022
JAN 1,
2023
JAN 1,
2024
5/8th
$17.27
$20.35
$21.86
$21.86
$23.48
$25.22
$27.09
3/4th
$17.27
$20.35
$23.48
$25.22
$27.09
1
1 1/2
$28.79
$31.54
$59.47
$33.88
$63.88
$99.89
$36.39
$68.61
$39.09
$73.69
$41.99
$79.15
$57.58
2
$92.12
$93.00
$107.29
$115.23
$123.76
-------3---
4
6
$172.73
$287.88
_
$246.68
$422.71
$897.73
$264.94
$454.00
$964.17
$284.55
$487.60
$1,035.52
$305.61
$523.69
$1,112.15
$328.23
$562.45
$1,194.45
$575.76
8
$921.22
$1,568.33
$1,684.39_
$1,809.04
$2,086.69
10
12
$1,655.90
$2,663.48
$2,350.70
$2,965.44
$2,524.66
$3,184.89
$2,711.49
$3,420.58
_$1,942.91
$2,912.15
$3,673.71
$3,127.65
$3,945.57
Per Dwelling Unit
Charge
$1.00
N/A
N/A
N/A
N/A
N/A
Usage Charges
Potable Water (per
he
$3.081
$3.11
$3.35
1 $3.60
$3.87
$4.16
23-25
Table 2: Fire Protection
Services
Effective
Effective
Effective
Effective
Effective
Meter Size (Inch)
Current
Rates
JAN 1,
2020
JAN 1,
2021
JAN 1,
2022
JAN 1,
2023
JAN 1,
2024
5/8th
3/4th
$3.13
$5.00
$10..41_
$10.59
$11.19
$11.38
- $12.02
$12.23
$12.91
$13.14
$13.87
$14.12
1
11/2
2
3
$7.50
$10.00
$12.50
$11.07
$11.87
$13.09
$14.76
$19.78
$37.72
$68.70
$11.89
$12.75
$14.06
$15.86
$21.25
$40.52
$73.79
$123.82
$193.16
$12.77
$13.70
$15.11
$13.72
$14.72
$16.23
$18.31
$14.74
$15.81
$17.44
$15.00
$20.00
$30.00
$17.04
$22.83
$43.52
$19.67
4
6
8 _
10
12
$24.52
$46.75
$85.13
$26.34
$50.21
$40.00
$79.26
$91.43
$153.42
$50.00
$60.00
$115.28
$179.85
-
$132.99
$207.46
$142.84
$222.82 1
$239.31
Table 3: Recycled Water (RW)
Rates
Effective
Effective
Effective
Effective
Effective
Meter Size (Inch)
Current
Rates
JAN 1,
2020
JAN 1,
2021
JAN 1,
2022
JAN 1,
2023
JAN 1,
2024
_5/8th
$20.47
$10.34
$10.34
$11.11
$11.11
$11.94
$12.83
$12.83
$13.78
3/4th
$20.47
$11.94
$13.78
$34.13
$14.85
$17.14
$18.41
$19.78
1
$15.95
1 1/2
$68.25
$26.10
$28.04
$30.12
$32.35
$34.75
$52.73
$135.12
2
$109.19
$39.61
$42.55
$109.06
$45.70
$117.14
$49.09
$125.81
3
$204.75
------- - ------------
$101.54
4
$341.24
$172.47
$185.24
$198.95
$213.68
$229.50
6
$682.48
$363.88
$390.81
$419.73
$450.80
$484.16
$1,091.97
$731.42
$843.69
8
$634.09
$681.02
$785.55
RW Usage Charge
(per hcfl
$1.92
$2.05
$2.12
$2.13
$2.21
$2.29
Pump Station Charge
$0.39
$0.53
$0.57
$0.62
$0.67
$0.72
23-26
ATTACHMENT D
Water Rate Ivtcrease
Public Hearivig
City Council Meeting
November 19, 2019
Executive Summary:
• Water is a 24/7 community service, asset, and commodity
• Water is critical to public health and the environment
• The water system operates as an enterprise fund
• Current and future capital improvement projects are necessary
• Water operational costs (especially buying water) have gone up
• Water inflation is higher than standard inflation.;
• No rate increases over the last 5 years
• Expenses are now exceeding revenues
• Rate increases are needed ($3.38/month avg.)
UtilitiesDenartment Water Rate Increase Public HeariKg
23-27
Recent Water Rate Discussions:
• Mar. 12, 2019, City Council - Selection of Water Rate Study Consultant
• May 14, 2019, City Council - Water Master Plan
• May 16, 2019, Finance Committee — Water Enterprise Fund Analysis
• Jun. 27, 2019, Finance Committee — Draft Water Rate Study Results
• Aug. 13, 2019, City Council — Study Session on Water Rates
• September 24, 2019, City Council — Approval of the 2019 Water Rate
Study, authorized Public Hearing and mailing of notices.
Water Rate Increase Public Hearing
Public Notices mailed
J
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uti(it artment Water Rate Increase Public Hearing
23-28
Public Notices mailed
NOTICE OP PUBLIC HEARING
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Water Rate Increase Public Hearing
Water Rate Outreach:
• Additional staff presentations and outreach events:
• District 1 and 6 Townhall meetings
• West Newport and Corona del Mar Association meetings
• Green on the Green Expo; General Plan Community Fair
• Chamber of Commerce; Newport Beach Foundation
• Water Quality/Coastal Tidelands Committee
�o� r
Water Rate Increase Public Hearing
23-29
NEWPORT BEACH
2018 Water Delivery
AML
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groundwater wells
Water Utility Customer Service:
• On-call and 24-hour emergency service
• Water quality testing
• Public health and environment protections
• Water conservation and use efficiency
• Leak detection notifications
FAIRM along
• Consolidating municipal billing I�
• Fire fighting support
I+
Water Rate Increase Public Hearivtg
23-30
What Do Your Water Rates Fund Today?
Infrastructure
Purchase and Operations • Improvements and
Pump Water &Maintenance Replacements
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Water Rate Increase Public Healrivtg y=
23-31
Water Enterprise Fund:- -
%,
• Best Practice
• Segregated fund MIN 1b
• Similar intent to a private business enterprise
• Can only be spent for the specific purpose of water
• Separate accounting and financial reporting !Ppl" '
• Not a part of the General Fund _
Water Rate Increase Public Hearing
NEWPORT BEACH
Aging Infrastructure
23-32
NEWPORT BEACH
Conservation
Saves # i
water '
PCF ,a ion in water
las# 30 years use
following
2015
oug
,pot
� draught
-30°/a
a-
23-33
Visualization of Water Use:
aF
Utiliti ` Water Rate Increase Public Hearivtg
23-34
Status Q uo FinanchlPlan - Fund Balance
Static is Tncom e and D w :hd liig Re se rare s
ffwatermtes xem ain unchanged
Projected Ending Balances
$30
c
.0 $25
$20
$15
$10
$5
$0
-$5
-$10
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
=Ending Balances —Min Target Balances
Water Rate Increase Public Hearing
23-35
PrDposed FinanchlP]an
74% slcmase peryearforthe next years $3 38/4n onth avg. foristyeari
Projected Ending Balances
,,$30
c
$25
$20
$15
$10
$5
$0
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
=Ending Balances —Min Target Balances
Water Rate Increase Public Hearing
Custom erTm pactAnalrsis
$3 38/in onth is tyle average, (-$40/yeax)
Sample Customer Bills Impacts
Monthly Water Bills. 5/8 -inch meter
$200
$180
$160
$140
$120
$100
$80
$o ■■ 11
$0
10HCF 20HCF 30HCF 40HCF SOHCF
■Current Bills $48.07 $78.87 $109.67 5140.47 $171.27
■ Proposed Bills $5145 $82.55 $113.65 $144.75 $175.85
Impact $ $3.38 $3.68 $3.98 $4.28 $4.58
Impact % 7.0% 4.7% 3.6% 3.0% 2.7%
Water Rate Increase Public Hearing
23-36
PiDposed M onth
Cha3ges M eteis
5/$ itch 16,545
W aterF:k-ed Chaiqes
2020
$1727 $2035 $3D8
3/4 inch
4
$1727
$2035
$3D8
$2348
1-nch
7,585
$28.79
$3154
$2.75
$1727
1% itch
551
$5758
$59147
$189
2nch
1,430
$9232
$93 DO
$088
$3639
3 inch
32
$17273
$246.68
$7395
$5758
4 inch
51
$28788
$422.71
$134 83
6 inch
15
$575.76
$897.73
$32197
$10729
8 inch
8
$92122
$1,56833
$647
$172.73
10 inch
0
$1,65590
$2,350.70
$69480
12 hch
PerD w e Ihg U n>t
Charge
1
$2,663 48
$1D 0
$2,965 44
E ]nt hate
$30196
1D 0
5-rearProposed W aterRates
W aterSezvd-ce M onth Fixed Charges
FY 2 019 FY 2020 FY 2021 FY 2 0 727 FY 2023
• w.. -.Rate- 7.4096 7.4096 7.4096 7.4096
W aterServxes
FY 2024
7.4096
5/13
$1727
$2035
$2186
$2348
$2522
$27D9
3/4
$1727
$2035
$2186
$2348
$2522
$27,09
1
$28.79
$3154
$3388
$3639
$39D9
$4199
11/2
$5758
$59A7
$6388
$68151
$73159
$7915
2
$9232
$93D0
$9989
$10729
$11523
$22376
3
$172.73
$24668
$26494
$28455
$305151
$32823
4
$28798
$42271
$454.00
$487150
$523159
$562 A5
6
$575.76
$89773
$96417
$1,03552
$1;2225
$1x.9445
8
$92122
$1$6833
$1,68439
$1,809 D4
$1,94291
$2,08669
10
$1,65590
$2,35070
$252466
$2,72149
$2,92225
$3;2765
12
$2,66348
$2,96544
$3;8489
$3/12058
$3,67371
$3,94557
PerDwehag Unk
Charge
$1D0
N/A
N/A
N/A
N/A
N/A
23-37
5-rearPmposed W aterRates
W aterU sage Charges
Water Rate Increase Public Hearing
5-yearProposed Fie Sexvke W aterRates
F1e PmtectsDn M ondi Fled Charges
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Fie Pmtectbn
Sexvhes
5/8
$313
$10.41
$1119
$1202
$1291
$13 B7
1
$5D0
$1059
$1138
$1223
$1314
$1472
11/2
$750
$1107
$11B9
$72.77
$13.72
$14.74
2
$10 D0
$11B7
$12.75
$13.70
$14.72
$15 B1
21/2
$1250
$13 D9
$14 D6
$1571
$1623
$17&4
3
$15 D0
$14.76
$15 B6
$1704
$1831
$1967
4
$20D0
$19.78
$2125
$22 B3
$2452
$2634
6
$30D0
$37.72
$4052
$4352
$46.75
$5021
8
$40D0
$68.70
$73.79
$7926
$8513
$9143
10
$50D0
$U528
$123 B2
$13299
$142 B4
$153&2
12
$60D0
$179 B5
$19336
$20746 $222 B2
$23931
Water Rate Increase Public Hearing
23-38
5-yearPmposed Recychd W atE�rRates
Recycbd W at-erM onjdAV Fled Charges
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY
RW Servkes
2024
5/8
$20 47
$1.034 $1121
$1194
$22.83
$13.78
3/4
$20 47
$1.034 $2111
$1194
$22.83
$13.78
1
$3413
$1425 $1595
$1714
$18.41
$19.78
11/2
$6825
$2620 $28D4
$3022
$3235
$34.75
2
$10919
$3961 $4255
$45.70
$49D9
$52.73
3
$20475
$10154 $1D9 D6
$11714
$12581
$13512
4
$34124
$17247 $28524
$19895
$21358
$22950
6
$682.48
$36388 $39081
$419.73
$45080
$48416
8
$109197
$634D9 $681D2
$73142
$78555
$843159
RW Usage Charge
$192
$2 D5 $222
$213
$221
$229
Pump Statim
Charge
$039
$053 $057
$0152
$0157
$0.72
7
Water Rate Increase Public Hearing
Next Steps and Timeline:
• Tonight (November 19, 2019):
• Conduct a Public Hearing��
• Tabulate protest votes
• Consider adoption of the rates (Ordinance and Resolution)
• January 1, 2020:
• If approved, implement water rate changes
• Customers would see change on February bills
Water Rate Increase Public Hearing
23-39