75A - PH - WATER AND SEWER RATES

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jmf 11/5/19 RESOLUTION NO. 2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADJUSTING RATES FOR WATER AND SEWER SERVICES PROVIDED BY THE CITY OF SANTA ANA WHEREAS, Chapter 39 of the Santa Ana Municipal Code, Article ll, Sections 39- 19 and 39-36, authorize the City to set and charge fees for the provision of water and recycled water to customers within the City of Santa Ana and to establish those fees by resolution; and WHEREAS, Chapter 39 of the Santa Ana Municipal Code, Article III, Sections 39-55.1, 39-55.2, and 39-55.4, authorize the City to set and charge fees for the provision of sewer services to customers; and WHEREAS, this Resolution adjusting water, recycled water, and sewer service rates shall apply only to Chapter 39 of the Santa Ana Municipal Code, Water and Sewers; and WHEREAS, the City previously retained Stantec and Hildebrand Consulting, independent financial consultants, to review the City's water, recycled water, and sewer utilities to determine whether rates for service charges are sufficient to meet increased costs of service, and to prepare a cost of service analysis and rate study (the "Study'); and WHEREAS, based on the results of the Study (a copy of which is available for inspection at the City and was also posted on the City's website), increases to the rates for water, recycled water, and sewer service fees and charges are necessary; and WHEREAS, the proposed water rate structure includes a variable water usage charge and a fixed monthly water utility charge, both billed on a bimonthly basis. The proposed water usage charge is based on the amount of water consumed, measured in dollars per hundred cubic feet ("CCF") of water delivered to the property. The fixed monthly water utility charge is independent of the amount of water used and is determined based on the size of the meter serving the property, as measured in inches; and WHEREAS, the proposed water rate structure also includes a pass -through adjustment mechanism providing for increases to the water usage charge based on increases in the cost of purchasing potable and/or recycled wholesale water needed to supply the City's water system that may be imposed on the City by the Orange County Water District or the Metropolitan Water District; and WHEREAS, the proposed sewer utility charge is a fixed, monthly charge billed on a bimonthly basis, based on the size of the meter serving the property, as measured in inches; and Resolution No. 2019-XXX Page 1 of 5 EXHIBIT 1