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HomeMy WebLinkAbout2023-75 - Establishing Sewer Rates and Charges Effective January 1, 2024, and Four Years of Phased In Increases TheretoRESOLUTION NO. 2023-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ESTABLISHING SEWER RATES AND CHARGES EFFECTIVE JANUARY 1, 2024, AND FOUR YEARS OF PHASED IN INCREASES THERETO WHEREAS, on December 1, 2022, the City of Newport Beach ("City") retained Black & Veatch Management Consulting, LLC ("Black & Veatch") to conduct a Sewer Rate Study ("Study") to analyze the current cost of providing sewer services to property owners and sewer customers, develop a 10-year financial plan, and recommend an appropriate rate structure and sewer charges, WHEREAS, on May 11, 2023, and July 25, 2023, the City's Utilities Department ("Utilities") and Black & Veatch presented the findings and recommendations of the Study to the City's Finance Committee, and after thorough discussion and review, the Finance Committee unanimously voted to forward the Study to the City Council of the City of Newport Beach ("City Council") for final review and approval; WHEREAS, on August 22, 2023, Utilities and Black & Veatch presented a draft of the Study's findings and recommendations during a City Council study session, WHEREAS, on September 26, 2023, Utilities presented the final draft Study for City Council approval and requested City Council set a public hearing, authorize the mailing of over 27,000 notices to property owners and sewer customers informing them of the proposed increase in sewer rates and charges, and commence the 45-day notice period in accordance with Proposition 218; and WHEREAS, following a properly noticed public hearing held on November 14, 2023, in conformity with Proposition 218, the City Council determined that no majority protest against the proposed sewer rates and charges existed; NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Resolution No. 2023-75 Page 2 of 3 Section 1: The City Council does hereby adopt the sewer rates and charges set forth in Exhibit 'A," which is attached hereto and incorporated herein by reference effective January 1, 2024 with phased in increases thereto through January 1, 2028 as identified in Exhibit "A." The City Council directs staff to include the newly established sewer rates and charges and phased in increases thereto, as adopted by this resolution, in 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 ("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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Resolution No. 2023-75 Page 3 of 3 Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 14t" day of November, 2023. ATTEST: APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AdroA C. Harp City Attorney Attachment: Exhibit A - Sewer Rates and Charges EXHIBIT A Sewer Rates and Charges Table 1: Sewer Services Effective Effective Effective Effective Effective JAN 1, JAN 1, JAN 1, JAN 1, JAN 1, Meter Size (Inch) 2024 2025 2026 2027 2028 5/8th , 3/4th & 1 $10.55 $12.85 $15.65 $18.95 $22.25 1 Y2 $15.83 $19.28 $23.47 $28.43 $33.38 2 $21.11 $25.71 $31.30 $37.90 $44.51 3 $26.38 $32.14 $39.12 $47.38 $55.63 4 $31.66 $38.56 $46.95 $56.85 $66.76 6 $36.94 $44.99 $54.77 $66.33 $77.89 8 $42.22 $51.42 $62.60 $75.81 $89.01 JAN 1, JAN 1, JAN 1, JAN 1, JAN 1, Effective Dates 2024 2025 2026 2027 2028 Cost per Sewer Use HCF $0.53 $0.55 $0.57 $0.59 $0.61 Table 2: Sewer Only Customers Effective Effective Effective Effective Effective Meter Size (Inch) JAN 1, 2024 JAN 1, 2025 JAN 1, 2026 JAN 1, 2027 JAN 1, 2028 5/8th , 3/4th $15.86 $18.36 $21.35 $24.85 $28.36 1 $18.51 $21.11 $24.20 $27.80 $31.41 1 '/2 $53.99 $58.88 $64.52 $70.91 $77.30 2 $59.27 $65.31 $72.34 $80.39 $88.43 3 $137.68 $147.63 $158.83 $171.29 $183.74 4 $238.35 $253.06 $269.27 $286.97 $304.67 6 $413.21 $435.48 $459.51 $485.26 $511.00 8 $418.49 $441.91 $467.33 $494.74 $522.12 10 $423.77 $448.33 $475.15 $504.21 $533.25 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; the foregoing resolution, being Resolution No. 2023-75 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 141h day of November, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Councilmember Brad Avery Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Joe Stapleton, Councilmember Erik Weigand NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 15'h day of November, 2023. m1ft, 0 C. Leilani I. Brown City Clerk Newport Beach, California