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HomeMy WebLinkAbout17 - Adoption of Sewer Rate Adjustment - MemoSEW PORT CITY OF NEWPORT BEACH qF', CITY ATTORNEY'S OFFICE O DATE: March 22, 2016 TO: Honorable Mayor & Members of City Council FROM: Leonie Mulvihill, Assistant City Attorney MATTER: Waste Water Rates A15-00947 SUBJECT: Regular Meeting March 22, 2016, Agenda Item 17 — Adoption of Sewer Rate Adjustment Since the posting of the agenda, the City Attorney's Office prepared a revised Ordinance No. 2016-6 to clarify that the adjusted rates will go into effect on the effective date of Ordinance No. 2016-6 and adjusted every January 1St through, and including, January 1, 2020. A redline draft of the resolution is attached hereto as Attachment 1. We recommend that you approve this item as amended, and have provided a final draft of Ordinance No. 2016-6 in Attachment 2. Submitted by: Leonie Mulvihill Assistant City Attorney Late Communication to M&cc a22.16Mtg ATTACHMENT 1 ORDINANCE NO. 2016-6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 14.24.065 OF TITLE 14 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINTING TO SEWER USE CHARGE WHEREAS, The City of Newport Beach charges users of the City's sewer service to cover the annual operation and maintenance of the sewer system, as wells as the repair and replacement of pipes, pump station, facilities and equipment to improve the sewer system safety, efficiency and reliability; and WHEREAS, on February 26, 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 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. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 14.24.065 is hereby amended to the Newport Beach Municipal Code to read as follows: A. A monthly fixed sewer service charge shall be assessed against each individually metered dwelling unit or business structure connected to the public sewer system and for each sewer connection to the public sewer system for customers who purchase water from the City of Newport Beach. The sewer service charge is based on the water customer's water meter size. Fixed sewer service charges shall be elleGtive jaRuary ist of eaGh year and charged pursuant to a resolution adopted by the City Council. B. A monthly fixed sewer service charge for customers who do not purchase water from the City of Newport Beach shall be assessed for each service connection to the public sewer system. Fixed sewer service charges shall be effGGtiVo 'an, pan, 1" of each yeaF and charged pursuant to a resolution adopted by the City Council. C. In addition to the sewer service charge specified above, a sewer use charge shall be assessed for each hundred (100) cubic feet of water delivered to each water customer connected to the public sewer system. The sewer use charges shall be e#cc ive-dams ry 46t of eaGh year and be charged pursuant to a resolution adopted by the City Council. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: 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. Section 4: The City Council finds the approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 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 to have a significant effect on the environment. Section 5: 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 be in full force and effect. Section 6: 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, and it shall be effective thirty (30) days after its adoption. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of March, 2016, and adopted on the 12th day of April, 2016, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS Page 12 DIANE B. DIXON ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY Page 13 ATTACHMENT 2 ORDINANCE NO. 2016-6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 14.24.065 OF TITLE 14 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINTING TO SEWER USE CHARGE WHEREAS, The City of Newport Beach charges users of the City's sewer service to cover the annual operation and maintenance of the sewer system, as wells as the repair and replacement of pipes, pump station, facilities and equipment to improve the sewer system safety, efficiency and reliability; and WHEREAS, on February 26, 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 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. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 14.24.065 is hereby amended to the Newport Beach Municipal Code to read as follows: A. A monthly fixed sewer service charge shall be assessed against each individually metered dwelling unit or business structure connected to the public sewer system and for each sewer connection to the public sewer system for customers who purchase water from the City of Newport Beach. The sewer service charge is based on the water customer's water meter size. Fixed sewer service charges shall be charged pursuant to a resolution adopted by the City Council. B. A monthly fixed sewer service charge for customers who do not purchase water from the City of Newport Beach shall be assessed for each service connection to the public sewer system. Fixed sewer service charges shall be charged pursuant to a resolution adopted by the City Council. C. In addition to the sewer service charge specified above, a sewer use charge shall be assessed for each hundred (100) cubic feet of water delivered to each water customer connected to the public sewer system. The sewer use charges shall be charged pursuant to a resolution adopted by the City Council. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: 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. Section 4: The City Council finds the approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 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 to have a significant effect on the environment. Section 5: 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 be in full force and effect. Section 6: 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, and it shall be effective thirty (30) days after its adoption. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of March, 2016, and adopted on the 12th day of April, 2016, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR DIANE B. DIXON ATTEST: LEILANI I. BROWN, CITY CLERK APPROVE® AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY Page 13