RES-11437 REVISED MASTER SCHEDULE OF FEES AND CHARGES FOR WATER RATES - MARCH 14, 2023RESOLUTION NO. 11437
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE AMENDING AND
AREN THE HEE
AND CHARGESSING FORMASTERWATER
SC
RATES
OF FEES
WHEREAS, on March 14, 2023, a hearing was held before the City Council to consider
the rates and charges assessed by the City in connection with provision of water service; and
WHEREAS, by January 27, 2023, the notice required by the majority protest procedure
set forth in Article 13D, Section 6 of the California Constitution was mailed to all owners of record
to announce the hearing date and proposed water rate adjustments; and
WHEREAS, the notice of the time and the place of the hearing was published in a
newspaper of general circulation on February 23, 2023; and
WHEREAS, a water rate study was prepared by Raftelis Financial Consultants
Corporation,Inc., a consultant selected by the City because of its expertise in preparing water rate
studies on behalf of municipalities; and
WHEREAS, Government Code section 53756 authorizes the City to adopt a schedule of
fees or charges authorizing automatic adjustments that pass through increases in wholesale charges
for water and adjustments for inflation; and
WHEREAS, the written protests received do not constitute a majority of the property
owners of the identified parcels upon which the water rate will be charged; and
WHEREAS, the City Council has determined pursuant to Article 13D, Section 6 that the
proposed water rates do not exceed the estimated reasonable cost of providing water service and
that such water rates should be amended and included in the City's Master Schedule of Fees and
Charges.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Orange as
follows:
Section 1. The Master Schedule of Fees and Charges is hereby amended to include
Attachment "A" (Water Rates).
Section 2. The City Council finds that the rates and fees set forth in Attachment "A"
do not exceed the City's estimated reasonable costs of providing the respective goods, facilities,
and services for which the rates and fees are charged.
Section 3. Pursuant to Government Code section 53756, the water rates and fees
include multi-year rate adjustments effective April 1st, 2023, January 1st, 2024, January 1st, 2025,
January 1st, 2026, and January 1st, 2027.
Section 4. The City Council finds that the formula set forth in Attachment "B" is in
accordance with Government Code Section 53756 and will calculate costs of providing the
respective goods, facilities, and services for which the rates and fees are charged.
Section 5. If any rates, fee, or charges set forth in this Resolution or the application
thereof to any person or circumstance is held to be unconstitutional or otherwise invalid by any
court of competent jurisdiction, such invalidity shall not affect any other rate, fee, or charge, or
application thereof, and to this end the rates, fees, and charges of this Resolution are declared to
be severable.
Section 6. Prior to the implementation of any pass-through adjustments in water rates
and fees authorized by this Resolution, such pass-through adjustments shall be placed on the City
Council agenda as a report and file item under the Consent Calendar.
ADOPTED this 14th day of March 2023.
D 1 R. Slater, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orang
Attachments: Attachment A—Proposed Water Service Rates
Attachment B—Proposed Pass-Through Formula
Resolution No. 11437 2
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify
that the foregoing Resolution was duly and regularly adopted by the City Council of the City of
Orange at a regular meeting thereof held on the 14th day of March 2023, by the following vote:
AYES: COUNCILMEMBERS: Barrios, Dumitru, Tavoularis, Bilodeau,
Gutierrez, Gyllenhammer, and Slater
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBER/S: None
Pamela Coleman, City Clerk, City of Orange
Resolution No. 11437 3
ATTACHMENT"A"
Proposed Water Service Rates
Revenue Adjustment
April 1,2023 January 1,2024 January 1,2025 January 1,2026 January 1,2027
i 7% 6% 4% 4% 3%
Sevice Capacity Charges
Service Size(inch)Current Rate April 1,2023 January 1,2024 January 1,2025 January 1,2026 January 1,2027
3/4 32.05 $ 34.00 $ 36.04 $ 37.48 $ 38.98 $ 40.15
1 48.96 $ 52.75 $ 55.92 $ 58.16 $ 60.49 $ 62.30
1 1/2 91.24 $ 99.63 $ 105.61 $ 109.83 $ 114.22 $ 117.65
2 141.98 $ 155.88 $ 165.23 $ 171.84 $ 178.71 $ 184.07
3 260.38 $ 287.13 $ 304.36 $316.53 $ 329.19 $ 339.07
4 429.51 $474.63 $ 503.11 $ 523.23 $ 544.16 $ 560.48
6 852.35 $ 943.39 $ 999.99 $ 1,039.99 $ 1,081.59 $ 1,114.04
8 2,036.29 $ 2,255.89 $ 2,391.24 $ 2,486.89 $ 2,586.37 $ 2,663.96
10 3,220.23 $ 3,568.40 $ 3,782.50 $ 3,933.80 $ 4,091.15 $ 4,213.88
Fire Service Charges
Service Size(inch)Current Rate April 1,2023 January 1,2024 January 1,2025 January 1,2026 January 1,2027
2 2.97 $ 3.15 $ 3.28 $ 3.41 $ 3.51
3 8.62 $ 9.14 $ 9.51 $ 9.89 $ 10.19
4 39.02 $ 18.38 $ 19.48 $ 20.26 $ 21.07 $ 21.70
6 113.34 $ 53.38 $ 56.58 $ 58.84 $ 61.19 $ 63.03
8 241.53 $ 113.75 $ 120.58 $ 125.40 $ 130.42 $ 134.33
10 434.36 $ 204.56 $ 216.83 $225.50 $ 234.52 $ 241.56
12 330.42 $ 350.25 $364.26 $ 378.83 $ 390.19
16 704.13 $ 746.38 $776.24 $ 807.29 $ 831.51
Volumertric Rates
Single Family&Condo
current
Tiers(hcf)
Current Rate April 1,2023 January 1,2024 January 1,2025 January 1,2026 January1,2027
Tier 1 0-23 $ 2.87 $ 3.08 $ 3.26 $ 3.39 $ 3.53 $ 3.64
Tier 2 24-42 $ 2.95 $ 3.20 $ 3.39 $ 3.53 $ 3.67 $ 3.78
Tier 3 42 $ 3.05 $ 3.37 $ 3.57 $ 3.71 $ 3.86 $ 3.98
Multi-Family
current
Current Rate April 1,2023 January 1,2024 January 1,2025 January 1,2026 January 1,2027Tiers(hcf)
Tier 1 0-15 $ 2.87 $ 3.07 $ 3.25 $ 3.38 $ 3.52 $ 3.63
Tier 2 16-19 $ 2.91 $ 3.14 $ 3.33 $ 3.46 $ 3.60 $ 3.71
Tier 3 19 $ 2.96 $ 3.20 $ 3.39 $ 3.53 $ 3.67 $ 3.78
Current
Current Rate April 1,2023 January1,2024 January 1,2025 January 1,2026 January 1,2027Tiers(hcf)
Commercial N/A $ 2.94 $ 3.20 $ 3.39 $ 3.53 $ 3.67 $ 3.78
Agriculture N/A $ 2.93 $ 3.30 $ 3.50 $ 3.64 $ 3.79 $ 3.90
Construction Service N/A $ 2.93 $ 3.30 $ 3.50 $ 3.64 $ 3.79 $ 3.90
Elevation Pumping Charge
Current Rate April 1,2023 January 1,2024 January 1,2025 January 1,2026 January 1,2027
Zone 4 0.26 $ 0.22 $ 0.23 $ 0.24 $ 0.25 $ 0.26
Zone 5 0.68 $ 0.56 $ 0.59 $ 0.61 $ 0.63 $ 0.65
Attachment "B"
Proposed Pass-Through Formula
Because a significant portion of the City's water rates are heavily influenced by costs assessed
against the City by outside agencies, it is recommended that a pass through charge be included to
account for these agency's unanticipated future increases or decreases. Otherwise, the City may
not be able to generate the funds required to maintain and operate the City's water system and to
comply with regulations imposed by State and Federal agencies
Government Code Section 53756 authorizes agencies to adopt a schedule of fees or charges
authorizing automatic adjustments that pass through increases in wholesale charges for water and
adjustments for inflation, for a period of five (5) years. The amount of automatic adjustments
Pass-Through Charges)to account for changes in wholesale water costs will be based directly on
the incremental difference in costs that the City will incur from these other agencies as a result of
increases or decreases in the amount such agencies charge the City. Any such adjustments will
only be made to the extent such increases or decreases are not already reflected in the,schedule of
charges then in effect. The specific outside agencies are:
Orange County Water District(OCWD)
Metropolitan Water District of Southern California (MWD) through its regional water
wholesaler,the Municipal Water District of Orange County (MWDOC).
Data documenting the amount of the increase or decrease in water commodity costs and the basis
for all adjustment calculations will be made available to the public upon request at the time of any
automatic adjustment. The pass though cost applies only to the volumetric component of the water
rate and will be assessed on all hcf's used by a costumer. A notice of at least 30 days will be
provided to customers before any such adjustments will take effect. The formula for which the
automatic Pass-Through Charge is calculated is as follows:
Pass through rate $ = (
Proposed FY Water Purchase Costs—Baseline FY Water Purchase Costs)
hef) Calendar Year Water Use)