HomeMy WebLinkAbout7663RESOLUTION NO. 7663
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, SETTING CITY WATER RATESAND FINDING THE RATES WILL
NOT EXCEED THE ESTIMATED AMOUNT NECESSARY TO FUND THE
OPERATION OF THE CITY WATER SYSTEM FOR CALENDAR YEARS 2026
THROUGH 2O30
WHEREAS, pursuant to the Arcadia Municipal Code Section 7531.1, water rates
may be set and modified by resolution of the City Council; and
WHEREAS, it is the desire of the City Council to maintain flexibility so as to best
meet the needs of the City and water consumers; and
WHEREAS, proposed water rate changes for the period of Calendar Years 2026
through 2030, inclusive, were presented to the City Council at its October 7, 2025,
regularly scheduled City Council meeting; and
WHEREAS, the proposed water rate structure includes a fixed charge and a
volumetric rate, with the Volumetric Charge including four customer classes - (1)
Single Family Residential; (2) Multi -Family Residential; (3) Commercial; and (4)
Governmental, Institutional, and. Irrigation (collectively "Institutional"); and
WHEREAS, the Monthly Service Charge is a fixed charge established on the
basis of the size of the water meter (in inches) serving a property and is calculated to
recover a percentage of the water utility's annual fixed costs of providing water
service, such as utilities, equipment, materials, billing, collections, customer service,
meter reading, and, meter maintenance; and
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WHEREAS, the proposed water rates include revenue adjustments over the
five-year rate -setting period to make sure the Water Operating Fund has sufficient
funds to cover annual expenses and to build reserves to target levels by the end of
the rate -setting period, in the Year 2030; and
WHEREAS, the proposed water rates enable the City to increase water
revenues by 12%for Calendar Years 2026 and 2027; 10%for Calendar Year 2028; and
6% for Calendar Years 2029 and 2030, to fund expected operations, maintenance,
and CIP expenditures, and maintain a sufficient Reserve Fund balance; and
WHEREAS, a public notice concerning said rate changes was duly mailed to
residents in accordance with Proposition 218 noticing requirements on October 10,
2025, and a duly noticed public hearing concerning said rate adjustments was
conducted by the City Council on December 2, 2025; and
WHEREAS, the City duly gave notice of the period and means for submitting
written objections, and the City did not receive any written objections related to the
City's compliance with the substantive limitations on fees and assessments imposed
by Section 4 or Section 6 of Article XIII D of the California Constitution; and
WHEREAS, the City Council finds that the proposed water and sewer rates do
not exceed the reasonable and proportional costs of providing services to the
ratepayers and the various categories of ratepayers; and
WHEREAS, the City Council has determined that, pursuant to Proposition 218,
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a majority protest does not exist and the City Council may therefore proceed to set
the water service rates.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA,
DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. RECITALS. The above -stated recitals and true and correct and
represent the findings of the City Council.
SECTION 2. RATES. The City Council hereby adopts the following rates for
water service:
(a) Monthly Meter Charge ($/Meter Size)
Meter
1 /1 /2026
1 /1 /2027
1 /1 /2028
1 /1 /2029
1 /1 /2030
Size
5/8"
$21.31
$23.87
$26.26
$27.84
$29.52
3/4"
$21.31
$23.87
$26.26
$27.84
$29.52
1"
$26.54
$29.73
$32.71
$34.68
$36.77
1 1 /2"
$39.61
$44.37
$48.81
$51.74
$54.85
2"
$55.30
$61.94
$68.14
$72.23
$76.57
3"
$91.91
$102.94
$113.24
$120.04
$127.25
4"
$144.21
$161.52
$177.68
$188.35
$199.66
6"
$274.96
$307.96
$338.76
$359.09
$380.64
8"
$431.86
$483.69
$532.06
$563.99
$597.83
10"
$641.06
$717.99
$789.79
$837.18
$887.42
(b) Single- Family Residential and Multi -Family Residential
Single -Family Residential and Multi -Family Residential rates consist of tiers which
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impose higher rates per unit of water as the level of consumption increases, with
one unit equal to one hundred cubic feet of water.
Single -Family Residential Proposed Five -Year Water Volumetric Schedule
2026
2027
2028
2029
2030
Tier 1: 0-8 $2.61
$2.93
$3.23
$3.43
$3.64
Tier 2: 9-26 $3.03
$3.40
$3.74
$3.97
$4.21
Tier 3: > 26 $3.53
$3.96
$4.36
$4.63
$4.91
The amount of water allotted for Multi -Family Residential customers is based on
allotments per dwelling unit. The multifamily customer class will have two allotment
rates, as follows:
Multi -Family Residential Monthly Allotments (Per Dwelling Unit)
HCF x
Per Dwelling Unit
Allotment 1
6 hcf/du/mo
Allotment 2
>6 hcf/du/mo
Multi -Family Residential Monthly Water Rates
1 /1 /2026 1 /1 /2027 1 /1 /2028 1 /1 /2029
Allotment 1 $2.59 $2.91 $3.21 $3.41
Allotment 2 $2.93 $3.29 $3.62 $3.84
(c) Commercial and Institutional
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1 /1 /2030
$3.62
$4.08
Commercial and Institutional rates for the Volumetric Charge are uniform, but
the amount of the charge imposed varies based on the number of units of water
delivered to a property (institutional rates shall include Government and Irrigation
customers), with one unit equal to one hundred cubic feet of water.
Commercial Monthly Water Rates
11112026 1 /1 /2027 11112028 1 /1 /2029 1 /1 /2030
$2.75 $3.08 $3.39 $3.60 $3.82
Governmental Institutional and Irrigation Water Rates
1 /1 /2026 1 /1 /2027 1 /1 /2028 1 /1 /2029 1 /1 /2030
$3.18 $3.57 $3.93 $4.17 $4.43
SECTION 3. FIRE HYDRANT SERVICE FOR CONSTRUCTION, OUTSIDE
CITY, AND PRIVATE USE. Fire hydrant meters, eddy valves, and water sold for
construction, to outside City agencies, and for private use, shall be subject to the
following charges:
Meter Installation $159.29
Meter Relocation $79.65
Meter Reread $142.41
Meter Rental $91.91/month
Eddy Valve Rental $25.00/month
Hydrant Rental $32.45/month
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Hydrant Permit
Water Usage
Deposit (Refundable)
$46.06
$3.18/100 cubic feet
$1,681.26
All water consumption is to be charged at the rate of three dollars and
eighteen cents ($3.18) per full one hundred (100) cubic feet registered on the
consumer's meter.
Unmetered water use will be charged at a flat rate determined by the Water Section
of the Public Works Services Department based upon type of use.
SECTION 4. FIRE LINE SERVICE (NO CHARGE FOR WATER USED FOR FIRE
SERVICE). The current water rates also include a private fire service bi-monthly
charge for those customers with a dedicated fire service line. The table below shows
the proposed five-year water rate schedule for the private fire line charge through
the year 2030. The following rates are established for monthly charges for fire
protection service:
Monthly Private Fire Line Charge
Line Size
1 /1 /2026
1 /1 /2027
1 /1 /2028
1 /1 /2029
1 /1 /2030
5/8"
$7.50
$8.40
$9.24
$9.80
$10.39
3/4"
$7.50
$8.40
$9.24
$9.80
$10.39
1"
$7.50
$8.40
$9.24
$9.80
$10.39
11/2"
$7.50
$8.40
$9.24
$9.80
$10.39
R
2"
$7.50
$8.40
$9.24
$9.80
$10.39
3"
$16.66
$18.66
$20.53
$21.77
$23.08
4"
$32.45
$36.35
$39.99
$42.39
$44.94
6"
$89.13
$99.83
$109.82
$116.41
$123.40
8"
$186.89
$209.32
$230.26
$244.08
$258.73
101,
$333.93
$374.01
$411.42
$436.11
$462.28
SECTION 5. DROUGHT SURCHARGE. The Drought Surcharge, as shown in the
table below, may be imposed during times of declared drought, when certain levels
of reduction from the base usage have been mandated. A drought surcharge is
charged on each unit of water used and is calculated to recover costs resulting from
a loss of volumetric revenue, due to reduced water use. The amount of the drought
surcharge at different levels of usage reduction is based upon the City's projected
revenue shortfall, adjusted for changes in costs.
Drought Reduction in Use Up to 10% Up to 20% Up to 30% Up to 40% Up to 50%
% Incr. on Monthly Volumetric Rates 0% 4% 10% 11% 18%
The City Council shall maintain discretion to implement drought rates.
SECTION 6. Should the cost of over entitlement water increase at any time
during 2026-2030, the water rate will be adjusted to reflect a direct pass -through of
the increase over and above the increase projected in the rate model.
SECTION 7. All rates set forth in this Resolution shall be effective and
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operative for water use and hills sent after January 1, 2026.
SECTION 8. Annually adjusted rates shall take effect for all water use and
service appearing on water bills issued on or after January 1, 2027, and each January
1 thereafter, including January 1, 2030. Prior to implementing the rates, however,
the City Council will review its projected costs for each year to determine the
maximum amount of any rate increases that are necessary.
SECTION 9. The City Council hereby finds that the rates specified in this
Resolution will not produce an amount in excess of that necessary to fund the
operation of the City of Arcadia Water System.
SECTION 10. The City Council hereby finds that the City duly provided a
written objection period from October 10, 2025, through November 24, 2025,
inclusive, pursuant to Assembly Bill 2257. The City did not receive any objections
concerning the City's compliance with substantive limitations on fees and
assessments imposed by Section 4 or 6 of Article XIII D of the California Constitution.
SECTION 11. The City Council finds that this Resolution is exempt from the
requirements of the California Environmental Quality Act as specified in Public
Resources Code Section 21080(b)(8) and Title 14 Section 15273 of the California
Administrative Code.
SECTION 12. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 2nd day of December, 2025.
Mayor of the City of Arcadia
ATTEST:
fi
� �-' " --/, -, / P-., �' �
City Clerk
APPROVED AS TO FORM:
Michael J. Maurer
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) SS:
CITY OF ARCADIA )
I, LINDA RODRIGUEZ, City Clerk of the City of Arcadia, hereby certifies that the
foregoing Resolution No. 7663 was passed and adopted by the City Council of the City
of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting
of said Council held on the 2nd day of December, 2025 and that said Resolution was
adopted by the following vote, to wit:
AYES: Cao, Cheng, Fu, Wang, and Kwan
NOES: None
ABSENT: None
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City Clerk of the City of Arcadia