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HomeMy WebLinkAbout19 - Sewer Rate Adjustment - Resolution 1RESOLUTION NO. 2016- __ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA AUTHORIZING A ONE-TIME REBATE TO RESIDENTIAL CUSTOMERS FOR A PORTION OF THE MONTHLY SEWER SERVICE AND USE CHARGES AUTHORIZED BY NEWPORT BEACH MUNICIPAL CODE SECTION 14.24.065 UPON THE EFFECTIVE DATE OF ORDINANCE NO. 2016-1 WHEREAS, in 2010, the City completed a Sewer Capital Improvement Master Plan that identifies the sewer operations, maintenance and capital improvement programs that are supported by the Sewer Enterprise Fund; and WHEREAS, in 2013, the City retained HF&H Consultants, LLC to prepare a sewer rate study in order to analyze the current cost to the City to provide sewer services and provide recommendations regarding an appropriate rate structure to ensure funding of the operations, maintenance and improvement programs identified in the Master Plan; and WHEREAS, on January 26, 2016, the City Council introduced Ordinance No. 2016-1 amending Chapter 14.24.65 and adopting rate methodology for monthly sewer service use charges; and WHEREAS if Ordinance No. 2016-1 is approved by a second reading and becomes effective, the sewer service and use charges for residential sewer customers will increase in March 2016 and each subsequent January 1 through and included 2020 as follows: and; WHEREAS, the City Council hereby finds that as a result of a favorable economic climate, a balanced budget and strong revenues, if Ordinance No. 2016-1 becomes effective, it is in the best interest of the City to have the City’s General Fund assist residential sewer rate payers transition from the current rate structure to the rates proposed by Ordinance No. 2016-1. FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Effective Increase Date 3/01/2016 01/01/2017 01/01/2018 01/01/2019 01/01/2020 Monthly Sewer Use Charge 5/8" or 3/4" $6.04 $6.71 $7.44 $8.26 $9.17 1" $6.04 $6.71 $7.44 $8.26 $9.17 1 1/2" $6.65 $7.38 $8.19 $9.09 $10.09 Monthly Sewer Use Charge (Sewer Only Customers) Rate per Account $10.51 $11.66 $12.94 $14.37 $15.95 Sewer Consumption Charge Rate per HCF $0.35 $0.39 $0.43 $0.48 $0.53 $0.59 January 26, 2016 Item No. 19 NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: 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. Section 2: Upon the effective date of Ordinance No. 2016-1, the City Council hereby agrees to provide a one-time rebate to current residential wastewater customers who have meter sizes of 5/8”, 3/4” 1” or 1 ½” in the amount equal to each customer’s share of the incremental increase proposed by Ordinance No. 2016-000 and effective March 1, 2016 through and including the proposed rate effective January 1, 2018 (FY 2017-18). Section 3: Except as expressly set forth herein, nothing contained in this resolution shall be deemed to waive any charges otherwise required by any other provision of law (including but not limited to fees for City zoning entitlements, environmental clearance, and/or fees collected by the City on behalf of any other public agency or entity), nor otherwise waive compliance with any other applicable provisions of the Newport Beach Municipal Code or any other City ordinance, policy or regulation. Section 4: The recitals provided in this resolution are true and correct and are hereby incorporated into the substantive portion of this resolution. Section 5: This resolution shall take effect immediately upon the effective date of Ordinance No. 2016-1. ADOPTED this 26th day of January, 2016. ________________________________ Diane B. Dixon Mayor ATTEST: __________________________ Leilani I. Brown City Clerk