HomeMy WebLinkAbout10 - Correcting Recently Approved Fire Protection Service Water Rates and Charges in Resolution No. 2019-103Q SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
February 11, 2020
Agenda Item No. 10
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst,
jrosenbaum@newportbeachca.gov
PHONE: 949-644-3057
TITLE: Resolution No. 2020-17: Correcting Recently Approved Fire
Protection Service Water Rates and Charges in Resolution No. 2019-
103
ABSTRACT -
On November 19, 2019, the Utilities Department brought forward Resolution No. 2019-
103, which included Exhibit "A" with three tables for water charges and rates. They
included tables for: 1) Water Services (potable drinking water), 2) Fire Protection Services
water and 3) Recycled Water for the next five years. Unfortunately, there was a
scrivener's error in Table 2: Fire Protection Services that needs to be corrected, which
affects about 30 accounts. The correct information was in the public hearing notice, the
Water Rate Study, and in City Council reports and presentations.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Adopt Resolution No. 2020-17, A Resolution of the City Council of the City of Newport
Beach, California, Establishing and Correcting Fire Protection Service Water Rates
and Charges for the 1 -inch, 1 %-inch, and 2 -inch Meter, Adopting the Water Rates and
Charges for the 2% -inch Meter with Phased in Increases and Removing the Water
Rates and Charges for the Y -inch Meter.
FUNDING REQUIREMENTS:
No fiscal impact. The new Resolution corrects the errors found in Resolution No. 2019-
103, Exhibit "A" Table 2: Fire Protection Services.
10-1
Resolution No. 2020-17: Correcting Recently Approved Fire Protection Service
Water Rates and Charges in Resolution No. 2019-103
February 11, 2020
Page 2
DISCUSSION:
On November 19, 2019, the City Council held a noticed Proposition 218 public hearing
on water rate adjustments. The City Council approved the proposed water rate
adjustments, including the Fire Protection Service water rates. During the process of
implementing the new water rates into the billing system, an error was discovered within
the Fire Protection Service rate table affecting five classes of fire service water meters
affecting approximately 30 accounts. The error was a Utilities Department scrivener's
error during the transposing of the spreadsheet into Exhibit "A" of the Resolution. The
correct table was included in the notice sent to all City property owners and water
customers, in the Water Rate Study, and in City Council reports and presentations.
Fire Protection Service Water Rates:
The City's water system has approximately 460 Fire Protection Service customer
connections. These are typically the large red above ground pipes and valves seen in
front of businesses or in parking lots. This pressurized water is supplied on a standby
basis to provide additional fire -fighting water if needed by the property. The Fire Service
Water rates recovers the proportional cost to provide fire protection capacity, metering
and billing. They have also been adjusted to be compliant with industry standards. Most
fire services do not use water regularly. However, if water is used through the fire service,
the standard commodity potable water rate is used. The approved five-year rates for Fire
Protection Services, with adjustments effective January 1St of each year, are shown in
below.
Table 2: Fire Protection Service Water Rates as noticed:
Adjustments
i
Current
020
Approved
JAN 2021
Approved
JAN 2022
Approved
JAN 2023
Approved
JAN 2024
Approved
Fire Service
Connection (inches)
5/8
$3.13
$10.41
$11.19
$12.02
$12.91
$13.87
1
$5.00
$10.59
$11.38
$12.23
$13.14
$14.12
11/2
$7.50
$11.07
$11.89
$12.77
$13.72
$14.74
2
$10.00
$11.87
$12.75
$13.70
$14.72
$15.81
21/2
$12.50
$13.09
$14.06
$15.11
$16.23
$17.44
3
$15.00
$14.76
$15.86
$17.04
$18.31
$19.67
4
$20.00
$19.78
$21.25
$22.83
$24.52
$26.34
6
$30.00
$37.72
$40.52
$43.52
$46.75
$50.21
8
$40.00
$68.70
$73.79
$79.26
$85.13
$91.43
10
$50.00
$115.28
$123.82
$132.99
$142.84
$153.42
12
$60.00
$179.85
$193.16
$207.46
$222.82
$239.31
10-2
Resolution No. 2020-17: Correcting Recently Approved Fire Protection Service
Water Rates and Charges in Resolution No. 2019-103
February 11, 2020
Page 3
Subset of Table 2 errors approved in Resolution 2019-103
Table 2: Fire Protection Services
Effective
Effective
Effective
Effective
Effective
Meter Size (Inch)
Current
Rates
JAN 1,
2020
JAN 1,
2021
JAN 1,
2022
JAN 1,
2023
JAN 1,
2024
3/4t1h4
4
4-U2
$6.4)0
$ 768
$10.00
W.59
$44-38
$42.23
$43.44
$4442
$11.07
$a i.89
$12.77
$43.72
$14.74
$14.87
$42.7-6
$43.7-0
$14-2
$45-."
2
$12.50
$9:90
$113.09
$44:-96
$15.11
$46.23
$47-44
21/2
$9-98
$9-99
$G -BG
$G -GG
$9-99
Corrected Subset of Table 2
Table 2: Fire Protection Services
Effective
Effective
Effective
Effective
Effective
Meter Size (Inch)
Current
Rates
JAN 1,
2020
JAN 1,
2021
JAN 1,
2022
JAN 1,
2023
JAN 1,
2024
1
11/2
$5.00
$7.50
$10.59
$11.07
$11.38
$11.89
$12.23
$12.77
$13.14
$13.72
$14.12
$14.74
2
$10.00
$11.87
$12.75
$13.70
$14.72
$15.81
21/2
$12.50
$13.09
$14.06
$15.11
$16.23
$17.44
Staff is recommending adoption of Resolution 2020-17. This corrects the Fire Protection
Water Rates and also contains all of the adopted water rates and charges for future ease
of access of the public record. The new rates are in the process of being implemented
into the City's billing system and will also be found in the Schedule of Rents, Fines, and
Fees.
ENVIRONMENTAL REVIEW:
Staff recommends 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
F-ITFI IO RMii%a:ZMS][t[ O"MrOMiYUNIN
10-3
ATTACHMENT A
RESOLUTION NO. 2020-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ESTABLISHING
AND CORRECTING FIRE PROTECTION SERVICE
WATER RATES AND CHARGES FOR THE 1 -INCH, 1 1/2 -
INCH AND 2 -INCH METER, ADOPTING THE WATER
RATES AND CHARGES FOR THE 2 112 -INCH METER
WITH PHASED IN INCREASES AND REMOVING THE
WATER RATES AND CHARGES FOR THE 314 -INCH
METER
WHEREAS, on March 12, 2019, the City of Newport Beach ("City") retained
Raftelis Financial Consultants, Inc., ("Raftelis") to conduct a Water Rate Study ("Study")
to analyze the current cost of providing water services to property owners and customers,
develop a ten-year financial plan and recommend an appropriate rate structure and water
charges,
WHEREAS, on August 13, 2019, the City's Utilities Department ("Utilities") and
Raftelis presented a draft of the Study's findings and recommendations during a City
Council study session;
WHEREAS, on September 24, 2019, Utilities and Raftelis presented the final
Study for City Council approval and requested City Council set a public hearing and
authorize mailing of 27,000 notices to property owners and water customers, respectively,
to inform them of the proposed water rates and to open the 45 -day notice period in
accordance with Proposition 218 ("Proposition 218 Notice") which was mailed on October
1, 2019;
WHEREAS, on November 19, 2019, following a public hearing held in conformity
with Proposition 218, the City Council determined that no majority protest against the
proposed new water rates and charges existed and adopted Resolution No. 2019-103
approving the updated water rates and charges, however, the Fire Protection Service
water rates and charges for the 1 -inch, 1 '/2 -inch and 2 -inch meters were incorrect, the
Fire Protection Service water rate and charge for the 2 '/z -inch meter was inadvertently
omitted and the 3/4 -inch meter was inadvertently included;
WHEREAS, additionally on November 19, 2019, the City Council conducted a
second reading and adopted Ordinance No. 2019-16 amending Chapter 14.12 (Water
Rates and Charges) of the Newport Beach Municipal Code to set water rates and charges
by resolution of the City Council; and
10-4
Resolution No. 2020 -
Page 2 of 3
WHEREAS, the Fire Protection Service water rates and charges for the 3/ -inch, 1 -
inch, 1 %-inch, and 2 -inch meters must be corrected and the 2 Y2 -inch meter must be
added to the water rates and charges adopted via Resolution No. 2019-103.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby adopt the Fire Protection Service water
rates and charges for the 1 -inch, 1 Y2 -inch, 2 -inch and 2 Y2 -inch meters and removes the
water rates and charges for the 3/ -inch meter with all correct water rates and charges,
including those correctly adopted via Resolution No. 2019-103, set forth in Exhibit "A."
The Fire Protection Service water rates and charges, provided herein, were included in
the Proposition 218 Notice and no majority protest against these proposed new water
rates and charges existed. The City Council directs staff to include these water rates and
charges and phased -in increases thereto adopted by the City Council into the City's
Schedule of Rents, Fines and Fees, or other successor document thereto as amended
from time to time.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
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 not subject to
the California Environmental Quality Act ("CEQK) 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 as set forth in California Code of Regulations, Title 14, Division
6, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
10-5
Resolution No. 2020 -
Page 3 of 3
Section 5: This resolution shall take effect immediately and the City Clerk shall
certify the vote adopting this resolution.
ADOPTED this 11th day of February 2020.
Will O'Neill
Mayor
ATTEST:
Leilani 1. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
.Aaron Harp
City t rney
Attachment(s): Exhibit A Water Rates and Charges
10-6
EXHIBIT A
Table 1: Water Services
Services
Effective
Effective
Effective
Effective
Effective
Meter Size (Inch)
Current Rates
JAN 1, 2020
JAN 1, 2021
JAN 1, 2022
JAN 1, 2023
JAN 1, 2024
5/8th
$3.13
$17.27
$20.35
$21.86
$23.48
$25.22
$27.09
3/4th
$10.59
$17.27
$20.35
$21.86
$23.48
$25.22
$27.09
1
$11.89
$28.79
$31.54
$33.88
$36.39
$39.09
$41.99
1 1/2
$13.70
$57.58
$59.47
$63.88
$68.61
$73.69
$79.15
2
$16.23
$92.12
$93.00
$99.89
$107.29
$115.23
$123.76
3
$19.67
$172.73
$246.68
$264.94
$284.55
$305.61
$328.23
4
6
$287.88
$422.71
_
$454.00
$487.60
$523.69
$562.45
6
$40.00
$575.76
$897.73
$964.17
$1,035.52
$1,112.15
$1,194.45
8
$115.28
$921.22
$1,568.33
$1,684.39
$1,809.04
$1,942.91
$2,086.69
10
1 $193.16 1
$1,655.90
$2,350.70
$2,524.66
$2,711.49
$2,912.15
$3,127.65
12
$2,663.48
$2,965.44
$3,184.89
$3,420.58
$3,673.71
$3,945.57
Per Dwelling Unit
Charge
$1.00
N/A
N/A
N/A
N/A
N/A
Usage Charges
Potable Water
$3.08
$3.11
$3.35
$3.60
$3.87
$4.16
Table 2: Fire Protection
Services
Effective
Effective
Effective
Effective
Effective
Meter Size (Inch)
Current Rates
JAN 1 ,2020
Jan 1 ,2021
Jan 1 ,2022
Jan 1 ,2023
Jan 1 ,2024
5/8th
$3.13
$10.41
$11.19
$12.02
$12.91
$13.87
1
$5.00
$10.59
$11.38
$12.23
$13.14
$14.12
11/2
$7.50
$11.07
$11.89
$12.77
$13.72
$14.74
2
$10.00
$11.87
$12.75
$13.70
$14.72
$15.81
21/2
$12.50
$13.09
_
$14.06
$15.11
$16.23
$17.44
3
$15.00
$14.76
$15.86
$17.04
$18.31
$19.67
4
$20.00
$19.78
$21.25
$22.83
$24.52
$26.34
6
$30.00
$37.72
$40.52
$43.52
$46.75
$50.21
8
$40.00
$68.70
$73.79
$79.26
$85.13
$91.43
10
$50.00
$115.28
$123.82
$132.99
$142.84
$153.42
12
$60.00
$179.85
1 $193.16 1
$207.46 1
$222.82 1
$239.31
Table 3: Recycled Water (RW) Rates
Effective
Effective
Effective
Effective Effective
Meter Size (Inch) Current Rates
JAN 1 ,2020
JAN 1, 2021
JAN 1, 2022
JAN 1, 2023 JAN 1, 2024
5/8th $20.47
$10.34
$11.11
$11.94
$12.83 $13.78
3/4th $20.47
$10.34_
$11.11
$11.94
$12.83 $13.78
1 $34.13
$14.85
$15.95
$17.14
$18.41 $19.78
1 1/2 $68.25
$26.10
$28.04
$30.12
$32.35 $34.75
2 $109.19
$39.61
$42.55
$45.70
$49.09 $52.73
3 $204.75
$101.54
$109.06
$117.14
$125.81 $135.12
4 $341.24
$172.47
$185.24
$198.95
$213.68 $229.50
6 $682.48
$363.88
$390.81
$419.73
$450.80 $484.16
8 $1,091.97
$634.09
$681.02
$731.42
$785.55 1 $843.69
RW Usage Charge
Pump Station Charge
$1.92
$0.39
$2.05
$0.53
$2.12
$0.57
$2.13
$0.62
$2.21
$0.67
1 $2.29
$0.72
10-7