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HomeMy WebLinkAbout2019-16 - Amending Chapter 14.12 (Water Rates and Charges) of the Newport Beach Municipal Code Setting Water Rates by Resolution and Other Related ChangesORDINANCE 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(B) (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: Ordinance No. 2019-16 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 ollows: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. Ordinance No. 2019-16 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 5t" day of November, 2019, and adopted on the 19th day of November, 2019, by the following vote, to -wit: AYES: Mayor Dixon, Mayor Pro Tem O'Neill, Council Member Avery, Council Member Brenner, Council Member Duffield, Council Member Herdman NAYS: Council Member Muldoon ABSENT: DIANE B. DIXON, MAYOR ATTEST: ;A,r LEILANI I. BROWN, CITY CLERK U APPROVED AS TO FORM: < CITY TORNEY'S OFFI �r,aRN�P AARON C. HARP, CITY ATTORNEY 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; that the foregoing ordinance, being Ordinance No. 2019-16 was duly introduced on the 51h day of November, 2019, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 191h day of November, 2019, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman NAYS: Council Member Kevin Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 201h day of November, 2019. EIW// .0 N I rII Leilani I. Brown, MMC' City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION 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 Ordinance No. 2019-16 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation on the following dates: 2019. Introduced Ordinance: November 9, 2019 Adopted Ordinance: November 23, 2019 � In witness whereof, I have hereunto subscribed my name this � I"l'r�, 1 day of Leilani I. Brown, C City Clerk City of Newport Beach, California