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Q SEW Pp�T <br />CITY OF <br />z NEWPORT BEACH <br />c�<,FORN'P City Council Staff Report <br />November 19, 2019 <br />Agenda Item No. 23 <br />TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br />FROM: Mark Vukojevic, Utilities Director - 949-644-3011, <br />mvukojevic@newportbeachca.gov <br />PREPARED BY: Joshua Rosenbaum, Senior Management Analyst, Utilities <br />Department, jrosenbaum@newportbeachca.gov <br />PHONE: 949-644-3057 <br />TITLE: Conduct a Proposition 218 Public Hearing and Consider a Water <br />Rate Increase <br />ABSTRACT: <br />Following the support of the Finance Committee, City Council conducted a study session <br />on August 13, 2019 and approved the 2019 Water Rate Study on September 24, 2019. <br />The completed Study analyzes the cost of services, the reserve policy, and recommends <br />increases to the water rates. Water rates have not increased since 2014 and increases <br />are needed to fund the increased costs to purchase and pump water, to operate the <br />system and the increases to the Capital Improvement Program. Staff has noticed all <br />affected property owners and customers per the State Law. City Council is asked to <br />conduct a Public Hearing, tabulate the results of protest received and if a majority protest <br />is not received, approve a five-year water rate increase effective January 1, 2020. <br />RECOMMENDATION: <br />a) Conduct a public hearing to accept comments on the proposed water rates and at the <br />conclusion of the hearing close the 45 -day notice period; <br />b) Determine this action is exempt from the California Environmental Quality Act (CEQA) <br />pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because <br />this action will not result in a physical change to the environment, directly or indirectly; <br />c) Direct the City Clerk to tabulate the results of the protests received from property <br />owners and customers and announce the findings; <br />d) Waive full reading, direct the City Clerk to read by title only, and adopt Ordinance <br />No. 2019-16, An Ordinance of the City Council of the City of Newport Beach, <br />California, Amending Chapter 14.12 (Water Rates and Charges) of the Newport <br />Beach Municipal Code Setting Water Rates by Resolution and Other Related <br />Changes; and <br />23-1 <br />