HomeMy WebLinkAboutCC Res 7114 2021-02-22RESOLUTION 7114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA ADJUSTING WATER RATES
WHEREAS, the City of Seal Beach (City) maintains a municipal Water
Utility to convey water to water customers in the City and has previously adopted
water rate adjustments per Resolution Number 5967 dated April 12, 2010 for the
sale and distribution of water; and
WHEREAS, it has always s been the policy of the City Council that the
City's Water Utility be self-supporting from charges made by the City for water
furnished to customers and all services rendered in connection therewith; and
WHEREAS, Seal Beach Municipal Code 9.35.020 provides for the
establishment of water rates by City Council Resolution; and
WHEREAS, in order to adjust water rates, the City must comply with
Article XIIID of the Constitution, more commonly known as Proposition 218; and
WHEREAS, the City's Water Utility's operational costs, which represent
the expenses associated with the daily operation of the water system, have
increased substantially since the City's last rate adjustment in January of 2014,
and are estimated to continue increasing significantly; and
WHEREAS, the schedule of water rates currently established for the
customers of water through the water system of the City of Seal Beach is not
adequate to meet the increased operating costs associated with the delivery of
water to its customers without incurring operating deficits; and
WHEREAS, Raftelis Financial Consultants (Raftelis) was awarded a
professional service agreement to prepare a comprehensive Water and Sewer
Utility Rate Study at the November 12, 2019 City Council meeting; and
WHEREAS, the scope of the Water and Sewer Rate Study included
development of five year financial plans, Cost of Service Analyses, new rate
designs, Customer Impact and Sensitivity Analyses, and a final Rate Study
Report for both the water and sewer utility enterprise funds; and
WHEREAS, the current City water rate structure is proposed to be
changed to be more consistent with current industry practices; and
WHEREAS, Raftelis has prepared a study and analysis dated December
18, 2020 and entitled "Water and Wastewater Study — Final Report / December
18, 2020"; (hereinafter, Rate Study); and
WHEREAS, the Rate Study demonstrates that the fees are in compliance
with the substantive provisions of Proposition 218, to wit:
(1) Revenues derived from the fees or charges do not exceed the
funds required to provide water services;
(2) Revenues derived from the fees or charges are not to be used for
any purpose other than that for which the fee or charge was
imposed;
(3) The amount of a fee or charge imposed upon any parcel or person
as an incident of property ownership does not exceed the
proportional cost of the service attributable to the parcel; and
(4) No fee or charge may be imposed for a service unless that service
is actually used by, or immediately available to, the owner of the
property in question. Fees or charges based on potential or future
use of a service are not permitted.
WHEREAS, On December 30, 2020, the City mailed the Public Hearing
Notice on the Proposed Water and Wastewater Rate Adjustments (Notice) for a
hearing to be held on February 22, 2021 relating to the proposed increase in
water charges in accordance with California Constitution Article MID Section 6;
and
WHEREAS, upon the close of February 22, 2021 majority protest hearing
the City Clerk tabulated all written protests submitted by the owners of each
identified parcel upon which the water rate increase is proposed in the days
leading up to the majority protest hearing and prior to the close of the majority
protest hearing and determined that the total number of protests submitted in
opposition of the recommended water rate adjustments did not exceed 50% of
the total number of affected parcels.
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY
RESOLVE:
Section 1. Resolution 5967 is hereby repealed and the following water rates and
charges are adopted:
Five -Year Water Bi -Monthly Fixed Charges
May January January January January
Meter Size 2021 2022 2023 2024 2025
5/8"
$36.79
$41.20
$44.91
$48.50
$52.38
3/4"
$36.79
$41.20
$44.91
$48.50
$52.38
V.
$54.72
$61.28
$66.80
$72.14
$77.92
1.5"
$106.00
$118.72
$129.40
$139.75
$150.93
2"
$160.35
$179.59
$195.75
$211.41
$228.33
3"
$285.30
$319.53
$348.29
$376.16
$406.25
4"
$474.70
$531.66
$579.51
$625.87
$675.94
6"
$934.74
$1,046.91
$1,141.13
$1,232.42
$1,331.01
8"
$1,495.09
$1,674.50
$1,825.20
$1,971.22
$2,128.92
10"
$2,140.04
$2,396.84
$2,612.56
$2,821.56
$3,047.29
6" Leisure World*
$467.37
$1,046.91
$1,141.13
$1,232.42
$1,331.01
2" Aquatic Park
$241.99
$271.03
$295.42
$319.05
$344.58
*Leisure World billed monthly but shown bi-monthly
Five -Year Bi -Monthly Fire Service Charges
May January
January
January
January
Meter Size
2021 2022
2023
2024
2025
4"
$38.22 $42.80
$46.65
$50.39
$54.42
6"
$111.01 $124.33
$135.52
$146.36
$158.07
8"
$236.57 $264.95
$288.80
$311.90
$336.86
10"
$425.43 $476.48
$519.36
$560.91
$605.79
Five -Year Bi -Monthly
Water Volumetric
Charges ($/hcf)
Customer Class
Tier May
January
January
January
January
Breakpoint 2021
2022
2023
2024
2025
Single Family Residential
Tier 1
Oto 17 hcf $2.65
$2.97
$3.24
$3.49
$3.77
Tier 2
>17 hcf $2.80
$3.14
$3.42
$3.69
$3.99
Multi -Family Residential*
Tier 1
0 to 17 hcf $2.65
$2.97
$3.24
$3.49
$3.77
Tier 2
>17 hcf $2.77
$3.10
$3.38
$3.65
$3.94
Leisure World*
Tier 1
Oto 17 hcf $2.65
$2.97
$3.24
$3.49
$3.77
Tier 2
>17 hcf $2.77
$3.10
$3.38
$3.6S
$3.94
Commercial
$2.65
$2.97
$3.24
$3.49
$3.77
Irrigation
$2.71
$3.04
$3.31
$3.S7
$3.86
City
$2.68
$3.00
$3.27
$3.53
$3.82
Aquatic Park
$3.00
$3.36
$3.66
$3.95
$4.27
*Tier 1 width increases in proportion to dwelling units served
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 22nd day of February, 2021 by the following vote:
AYES: Council Members: Kalmick, Massa-Lavitt, Sustarsic, Varipapa
NOES: Council Members: Moore
ABSENT: Council Members: None
ABSTAIN: Council Members: None
If, 94
Joe Kalmick, Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7114 on file in the office of
the/Oity Clerk, passed, approved, and adopted by the City Council at a regular
etipg held or the 22nd day of February, 2021.
D. Harper,