SR - - WATER BILL PASS THROUGH CHARGE FOR 2019 I
� *���°�°��* AGENDA ITEM
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��,.A�Q��� November 13, 2018
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TO: Honorable Mayor and ReviewedNeri�ied B
Members of the City Council City Manager
. Finance Director
THRU• R1Ck OttO To Be Presented B : Christo her Cash
� X Cons Calendar City Mgr Rpts
City Manager Council Rpts Legal Affairs
Boards/Cmtes Public Hrgs
FROM: Christopher Cash Admin Rpts Plan/Environ
Public Works Director
1. SUBJECT
Notice to the City Council that a pass through charge will be added to the water utility bill for
Calendar Year 2019 to take effect on January 1, 2019.
2. SUMMARY
City staff calculated the pass through charge for Calendar Year 2019 using the formula approved
by Council in December 2017. The calculation concluded that an additional $0.04 per billing
unit adjustment is needed to offset increased costs in water purchases necessary to supply water
to the City.
3. RECOMMENDED ACTION
Receive and File.
4. FISCAL IMPACT
Pass Through charges collected will be deposited to Water Utility Operations (600) and will
generate approximately$477,000 in additional revenue.
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community:
b. Provide and maintain the infrastructure necessary to ensure the safety of the public.
2. . Be a fiscally healthy community:
d. Effectively manage and develop City assets.
4. Provide outstanding public service:
b. Provide facilities and services to meet customer expectations.
ITEM �, a g 1 11/13/18
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goa16.0: Ensure water, sewer, and storm drain systems that meet the
needs of residents and businesses.
Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the
community.
Economic Development Element Goa16.0: Provide sufficient infrastructure to support
anticipated economic development and growth.
Policy 6.1: Provide public improvements to support commercial, industrial and institutional uses.
7. DISCUSSION and BACKGROUND
On December 12, 2017, Council approved Resolution No. 11046 amending and revising the
Master Schedule of Fees and Charges for water rates. This Resolution approved a five-year rate
structure and a pass through formula. The pass through charge is calculated every year and takes
into account only increases in water purchases required to supply water to the City.
Based on the results generated by the approved pass through formula, staff is recommending a
pass through charge of$0.04 per unit to the City of Orange water customers for Calendar Year
2019. The pass through calculation takes into account two major elements contributing to the
Water Supply cost, which are: import water costs from the Metropolitan Water District of
Southern California via the Municipal Water District of Orange County and ground water costs ,
from Orange County Water District. The rate adjustment approved by Council on December 12,
2017 of 7%, will take effect on January 1, 2019 in addition to the pass through charge of$0.04
per unit(one unit=748 gallons).
For the average water customer, they use 39 units of water every two months (29,172 gallons).
Based on the current water rates the average customer has a bill of$110.92 bi-monthly. With the
7% rate increase that was approved for January 1, 2019, the average bill will increase to $118.73.
With the addition of the $0.04 per unit pass through charge, the average bill will increase to
$120.29 bi-monthly. For the average Orange household, this is a total bi-monthly increase of
$9.37.
The $0.04 per unit pass through charge will generate approximately $477,000 in additional
revenue to the Water Fund which will offset the increase in costs for both imported water and the
Replenishment Assessment.
Ratepayers will receive postcards with the pass through information at least 30 days prior to the
pass through implementation date of January 1, 2019.
8. ATTACHMENT
• Postcard containing pass through information
ITEM 2 11/13/18
�- r ' ` Notice of
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��` �� Pass Through Increase
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• - , On December 12,2017,the Orange City Council adopted Resolution No.
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*,�,,���,. ,, F 11046,which authorized annual adjustments to the water service rates. In
� �""� . ' addition,cost increases incurred by the City from the providers of wholesale
�� � ��:,,:p�>E��� water are to be passed through as modifications to the water rates. The
• �*T�.- amount of pass-through adjustment accounts for the difference in actual
„ -
� - !k � wholesale water purchase costs and projected wholesale water purchase
• w �' -`-- � costs. The pass-through adjustment applies only to the consumption
�' � ''?�a„' �. � charge on a customer's bill.
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� F �1 R � ' � � �tf. • The Pass-Through adjustment incorporates cost increases from the
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� � � 1 , � 3 following agencies:
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� � �� � ' • The Municipal Water District of Orange County(MWDOC), our
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y�y�, ` �s ' � � ,� -,�i� regional water wholesaler for imported water.
� " ;� � f, � �
� ' , � "� ��! .� � � � •Orange County Water District(OCWD),our basin storage management
. _ ;� � and pumping of ground water.
h � � As calculated, a pass-through adjustment of $0.04 per billing unit
; � ,�, 1� � (1 unit=100 cubic feet=748 gallons)will be added to the water consumption
w_�,�r. �� � � c� charge efFedive January 1,2019. The new rate schedule is presented in the
�' � 'rf � �''�+� table on the reverse side of this notice. Please note that the new rate
� �� � .`t� , ` " ' `�`_+ schedu�e includes a 7%increase that was adopted as part of the resolution.
} '� � � f �'� If you have any question regarding this notice, please contad the City of
,
_ " Orange Water Billing Office at(714)744-2233.
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Water Consumption Charge (bi-monthly)
This cl�arge is based on water usage. The metered water usage is billed in units of • • � � � � �
100 cubic feet(1 unit= 100 cubic feet=748 gallons) as applied to a tiered rate
•
structure.For more information on water rates please visit our website at
www.cityoforange.org.
Single Family Residential City of Oratige Water Division PRESORTED
189 Soi�th Water Street STANDARD
� 1 1 � � I `
Orange,California 92866 U.S. POSTAGE
0-23 $2.35 PAID
24-42 �2.41 ANAHEIM,CA
PERMIT NO. 134
>42 $2.50
Multi-Family Residential
0-15 $2.35
i6-i9 $2.3s
>19 $2.42
Commercial
.� i • • I ! I � � i !
Flat Rate ! $2.41
Construction and Agriculture
,� � i
Flat Rate $2.40
CITY COUNCIL MINUTES NOVEMBER 13, 2018
3. CONSENT CALENDAR(Continued)
3.28 Water bill pass through charge for calendar year 2019 to take effect on January 1,
2019. (C2500.J.6)
ACTION: Received and filed.
3.29 Authorize the disposal of surplus City property known as Park Lane dead end,
located adjacent and east of 1736 E.Meats Avenue.Resolution No. 11115. (P2500.0.1)
A Resolution of the City Council of the City of Orange finding that certain City-owned
real property known as Park Lane dead end, located adjacent and east of 1736 E. Meats
Avenue in the City of Orange is surplus to the City's needs and authorizing the disposal
of said property.
ACTION: Approved Resolution No. 11115.
3.30 Exchange of City-owned real property known as Park Lane dead end for privately
owned property at 1736 E. Meats Avenue as part of the Meats/Tustin critical
intersection improvement project. (D4000.0)
ACTION: 1) Approved the exchange of City-owned real property known as Park Lane
dead end for privately owned property at 1736 E.Meats Avenue as part of the Meats/Tustin
critical intersection improvement project; 2) Authorized the Mayor and City Clerk to
execute the grant deed for the City owned property; 3) Executed the acceptance of the
privately owned property; and 4) Authorized the Mayor to execute the necessary escrow
and related documents. This exchange is conditional pending the expiration of the 60 days
surplus notification and no agency is interested in purchasing the City property.
3.31 Purchase of three Dell R740 Servers from Sidepath,Inc. (C2500.�
NOTE: Mayor pro tem Murphy recorded an abstention due to a potential conflict with
employment.
ACTION: Approved the purchase of three Dell R740 servers from Sidepath, Inc. in the
amount of$79,723.20. �
3.32 Old Towne West/Metrolink Parking Structure Parking Management and
Maintenance Plans. (P2500.0.9)
ACTION: Approved and adopted the Parking Structure Management and Maintenance
Plans.
3.33 Vacating a portion of road easement at 5242 E. Lomita Avenue as excess street right
of way that is no longer needed for street purposes.Resolution No. 11117. (54000.5.4)
A Resolution of the City Council of the City of Orange summarily vacating a portion of
road easement at 5242 E. Lomita Avenue as excess street right of way that is no longer
needed for street purposes.
ACTION: Approved Resolution No. 11117.
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