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Home My WebLink About2016-07-21 - Resolution No. 16-10 RESOLUTION NO. 16-10 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT SETTING WATER RATES EFFECTIVE AUGUST 1, 2016 AND RESCINDING RESOLUTION NO. 15-22 WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the Yorba Linda Water District (YLWD) is required to set water rates at a level which will yield an amount of revenue sufficient to pay for operating expenses, provide for repairs and depreciation of works, and pay the principal and interest on any bonded debt; and WHEREAS, pursuant to Government Code Section 53756, YLWD may adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water or for inflation; and WHEREAS, on July 16, 2015 the Board of Directors considered the 2015 Water and Sewer Rate Study, and on August 31, 2015, considered the 2015 Water and Sewer Rate Study Report; and WHEREAS, the Board of Directors determined that the water rate restructure described in the 2015 Water and Sewer Rate Study Report are necessary and sufficient to cover, without exceeding, the cost to provide water service to each customer connection; and WHEREAS, pursuant to, and in compliance with, Proposition 218 (California Constitution Art. XIII D) and Section 53755 of the Government Code, the District on July 31, 2015 mailed a notice of water rate restructure to all property owners within the District's service area, which included the proposed rates for FY 2015/16, FY 2016/17, FY 2017/18, FY 2018/19, and FY 2019/20, and the Board of Directors received a proof of mailing; and WHEREAS, pursuant to Proposition 218, on September 17, 2015, the Board of Directors held a public hearing regarding water rates and pass-through charges for FY 2015/16, FY 2016/17, FY 2017/18, FY 2018/19, and FY 2019/20 as provided in the notice and heard and considered protests; and WHEREAS, the Board of Directors adopted Resolution No. 15-22, which established water rates, effective October 1, 2015, in accordance with the Proposition 218 notice mailed on July 31, 2015; and Resolution No. 16-10 Setting Water Rates Effective August 1,2016 and Rescinding Resolution No. 15-22 1 WHEREAS, moving into fiscal year 2016/17 (Year 2 in the Rate Study), the Board anticipates an overall increase in annual volumetric water sales as a result of projected increases in water consumption due to the State Water Resources Control Board's suspension of the 36% conservation mandate imposed on the District and the Board action to suspend its administrative penalties and enter Stage 1 of its Conservation Ordinance; and WHEREAS, in response to the anticipated increase in annual volumetric water sales, the Board of Directors desires to adjust its water rates, within the confines of the District's Proposition 218 notice dated July 31, 2015, for the remainder of FY 2016/17 in order to remain revenue neutral; and WHEREAS, following extensive review and examination, including several Board workshops, the Board of Directors has decided to lower certain basic service charges in accordance with in-house calculations as prepared by District staff under direction of the Board. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Yorba Linda Water District does hereby find, determine, and resolve the following: Section 1. The matters set forth in the foregoing recitals are true and correct; and Section 2. Resolution No. 15-22 is hereby rescinded. Section 3. Written protests against the proposed rates and charges in the Proposition 218 notice dated July 31, 2015 were not presented by a majority of owners as set forth in California Constitution Art. XIII D Section 6(a)(2). Section 4. Prior to adopting Resolution No. 15-22, the Board of Directors reviewed the entire record for this matter, which includes the 2015 Water and Sewer Rate Study Report and the analysis of expenses and revenues set forth therein. Based upon the Board of Directors' review, it found and determined that the record supports the Board of Directors' findings that: A. As set forth in the 2015 Water and Sewer Rate Study Report, revenues derived from the rates and charges will not exceed the revenues required to provide the property related service; and Resolution No. 16-10 Setting Water Rates Effective August 1,2016 and Rescinding Resolution No. 15-22 2 B. As set forth in the 2015 Water and Sewer Rate Study Report, revenues derived from the rates and charges will not be used for any purpose other than that for which the rates or charges are imposed; and C. As set forth in the 2015 Water and Sewer Rate Study Report, the amount of a rate 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. Section 5. The Board of Directors hereby determines that no rate or charge will be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Section 6. The Board of Directors hereby determines that no rate or charge will be imposed for general governmental services, including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to all property owners. Section 7. Water rates and customer connection charges for service defined in Section 3.4 of the Rules and Regulations With Regard to the Rendition of Water Service of the Yorba Linda Water District are hereby set forth as follows and will take effect on customer billings with the "Bill Date" on or after August 1, 2016: For All Potable Water Service: All Water Usage shall be charged at $2.70 / 100 Cu. Ft. (Does Not Include Pass-through Charge) Monthly Service Charge for: 5/8" and 3/4" Meters $ 19.45 1" Meters $ 32.49 1 1/2" Meters $ 64.78 2" Meters $ 103.69 3" Meters $ 227.04 4" Meters $ 408.55 6" Meters $ 907.95 Resolution No. 16-10 Setting Water Rates Effective August 1 2016 and Rescinding Resolution No. 15-22 3 Section 8. Additional rates and fees for service are as follows: A. The charge for Permanent Untreated Water Service as defined in Section 3.4.3 of the Rules and Regulations for Water Service shall be as follows: The current Metropolitan Water District of Southern California (MWD) Untreated Full rate, plus charges by the Municipal Water District of Orange County (MWDOC), plus any other fees, charges or penalties as may be imposed by MWD and/or MWDOC, plus $13 per acre foot. B. The charge for Temporary Service as defined in Section 3.5.1 of the Rules and Regulations for Water Service shall be as follows: The rate per hundred cubic feet shall be two times the rate specified for all water service plus $2.50 per day for each day that the meter is available for use by the customer. A security deposit of $1,000 is required at the time of rental and the deposit will be returned within 15 days of the return of the meter. C. The charge for Private Fire Service as defined in Section 3.6 of the Rules and Regulations for Water Service shall be as follows: Meter Size Monthly Charge 4" $16.00 6" $35.00 8" $59.00 10" $94.00 Section 9. All rates and fees contained within this Resolution are subject to change following analysis by Raftelis Financial Consultants, Inc. to be completed by October 31, 2016. This analysis will substantiate either retaining or revising the above listed rates and fees. No rates and fees adopted by the Board of Directors will exceed those listed in the 2015 Water and Sewer Rate Study Final Report and if adjusted upward, will be done so in accordance with Proposition 218. Resolution No. 16-10 Setting Water Rates Effective August 1,2016 and Rescinding Resolution No. 15-22 4 PASSED AND ADOPTED this 21St day of July 2016, by the following called vote.- AYES: ote:AYES: Directors Beverage, Collett, Hawkins, Kiley and Melton NOES: None ABSTAIN: None ABSENT: None Ric Collett, President Yorba Linda Water District ATTEST: Marc Marcantonio, Board Secretary �. Yorba Linda Water District Reviewed as to form by General Counsel: Arthur G. Kidma , Esq. Kidman Law LLr Resolution No. 1 6-1 0 Setting Water Rates Effective August 1.2016 and Rescinding Resolution No. 15-22 5