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HomeMy WebLinkAbout2016-21 - Adopting New Sewer Service and Use and Consumption Rates Pursuant to Newport Municipal Code Section 14.24.065RESOLUTION NO. 2016-21 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING NEW SEWER SERVICE AND USE AND CONSUMPTION RATES PURSUANT TO NEWPORT MUNICIPAL CODE SECTION 14.24.065 WHEREAS, the City of Newport Beach charges users of the City's sewer system to cover the operation and maintenance and capital improvement of the sewer system; and WHEREAS, in 2013, the City's Municipal Operations Department retained the consulting services of HF&H Consultants, LLC (HF&H) to prepare a sewer rate study in order to analyze the current cost to the City to provide sewer services and to provide recommendations regarding an appropriate rate structure; and WHEREAS, the HF&H study recommended a revised rate structure that includes a fixed fee component for sewer customers, a fixed fee component for non -water customers, and a variable commodity charge; and WHEREAS, the City Council has reviewed the conclusions of the HF&H study and agrees that the recommended rate structure should be implemented, which will allow the City to charge the users of the sewer services a rate that reflects the City's current cost of maintaining the sewer system; and WHEREAS, in November 1996, California voters approved Proposition 218 and as a result thereof, California public entities must comply with the requirements set forth in Proposition 218when setting rates for sewer service; and WHEREAS, one requirement of Proposition 218 requires that a noticed public hearing on sewer rates be held and that rates not be increased if a majority of affected property owners protest the increased rates in writing; and WHEREAS, on January 12, 2016, a public hearing was conducted in the City Council Chambers at 100 Civic Center Drive, Newport Beach, CA 92660 to allow public testimony and discussion of the proposed sewer rate adjustments; and WHEREAS, at this time, the City Council took in written and oral comments that evening, considered all written protests against the proposed charges to determine if a majority protest exists; and WHEREAS, subsequent to the public hearing and at its regular meeting on January 26, 2016, the City Council determined that a majority protest did not exist and thereafter introduced of Ordinance No. 2016-1; and Resolution No. 2016-21 Page 2 of 3 WHEREAS, if approved following a second reading at a regular meeting of City Council, and upon its effective date, Ordinance No. 2016-1 will amend Section 14.24.065 of the Newport Beach Municipal Code to establish sewer service and use charges as follows: NOW THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The City Council does hereby approve and adopt the sewer use and consumption charges set forth in the recitals. Section 2: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. 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 11/2" $6.65 $7.38 $8.19 $9.09 $10.09 2" $9.06 $10.06 $11.17 $12.40 $13.76 21/2" $9.67 $10.73 $11.91 $13.22 $14.68 3" $10.27 $11.40 $12.66 $14.05 $15.59 4" $12.08 $13.41 $14.89 $16.53 $18.34 6" $13.59 $15.09 $16.75 $18.59 $20.64 8" $15.11 $16.77 $18.61 $20.66 $22.93 10" $19.33 $21.46 $23.82 $26.44 $29.35 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 $0.39 $0.43 $0.48 $0.53 $0.59 NOW THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The City Council does hereby approve and adopt the sewer use and consumption charges set forth in the recitals. Section 2: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Resolution No. 2016-21 Page 3 of 3 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 exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Section (15060(c)(2) (the activity (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 to have a significant effect on the environment. Section 5: This resolution shall only take effect immediately upon effective date of Ordinance No. 2016-1. ADOPTED this 26t" day of January, 2016. ATTEST: Leilani I. Brown City Clerk Diane B. Dixon Mayor 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 resolution, being Resolution No. 2016-21 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 26th day of January, 2016, and that the same was so passed and adopted by the following vote, to wit: NAYS: Council Member Selich, Council Member Curry, Council Member Petros, Mayor Dixon AYES: Council Member Peotter, Council Member Duffield, Mayor Pro Tem Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 27th day of January, 2016. - i2i �v City Clerk Newport Beach, California