HomeMy WebLinkAboutAgenda Report - January 4, 2006 I-01 PHAGENDA ITEM 14001
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Public Hearing to Adopt Ordinance and Resolution for Updated Wastewater
Capacity Impact Fee and Service Charges for High Strength Users
MEETING DATE: January 4,2006
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council conduct a public hearing to adopt an
ordinance and resolution for the updated Wastewater Capacity
Impact Fee and service charges for high strength users.
BACKGROUND INFORMATION: The proposed amendments to the Municipal Code implement changes
to the method used to charge wastewater capacity impact fees to new
growth for capacity at the White Slough Water Pollution Control Facility
(WSWPCF) and facilities at the Municipal Service Center (MSC). The
ordinance was considered and introduced at the December 21, 2005 City Council meeting. This is a one-
time fee on new development or improvements that increase loading on WSWPCF. The actual fee is set by
Resolution. Also being proposed are changes to service charges to high strength users.
Capacity Impact Fee
The existing wastewater capacity fee was approved by Council following the expansion of WSWPCF in
1991, as the final step in a series of rate and capacity (connection) fee increases initiated in 1986. The
present capacity fee is $2,099 per sewage service unit (SSU), which is the same as was adopted in
1991. A SSU represents the equivalent demand of a two-bedroom home.
Recently, the plant has undergone two additional capital construction projects, and a third is planned, that
increased and/or will increase the rated capacity to 8.5 million gallons per day while upgrading the level
of treatment to tertiary as required by the plant's Discharge Requirements issued by the Central Valley
Regional Water Quality Control Board.
A report, City of Lodi Wastewater Capacity Fees: Revised Analysis, prepared for the City by Hilton,
Farnkopf & Hobson, LLC, is attached for reference as Exhibit 1. The report presents the results of
analysis that assigns the value of past and future capital construction costs to existing and future
development in the City. The recommendation is to raise the capacity fee to $5,115 per SSU. The
recommendedfee does not include 2% for Art in Public Places.
Capital construction and debt service costs have, in each case, been allocated to new growth and
existing customers. In the case of the 1991 improvements (the 1989 i m provements were refinanced as
part of the 1991 improvementsfinancing), 74% is allocated to serve new growth. Forthe 2003 (Phase 1)
and 2004 (Phase 11) WSWPCF expansions, 26% and 24.2%, respectively, are allocated to new growth.
The 2006 (Phase 111) expansion is currently in design, and 58.4% is allocated to new growth. The costs
attributed to existing Lodi customers are the share attributed to restoring the plant's rated flow capacity
using updated State parameters and upgrading the level of treatment provided in response to more
stringent State discharge requirements. The share attributed to new growth is basically the difference
between existing flow (just over 6 million gallons/day) and the design capacity of 8.5 million gallons per
day, including part of the new tertiary improvements. The capital and debt service costs of facilities
serving existing customers are provided by user rates, although the rate payers are obligated to pay the
APPROVED: /,—z—.-C-1�
Blair KinCity Manager
.I UWeeslWastewater Fees1CPHAdoptFee doc 1212912005
Public Hearing to Adopt Ordinance and Resolution for Updated Wastewater Capacity Impact Fee and.
Service Charges for High Strength Users
January4,2006
Page 2
entire debt service amount as required in the financing documents if there are insufficient funds provided
by new growth. (which is not expected to occur).
As part of this analysis, the City's existing separate wastewater impact fee, which primarily covers costs
for expansion of the MSC. has been rolled into the capacity impactfee. This was done to simplify the fee
structure to only have one wastewater impact fee. The proposed ordinance changes implement this
change. The actual fee, as per the existing City Code, will be set by Resolution.
Another change in the Fee Resolution is that the fee would be adjusted annually on July 1, based on the
Engineering News Record 20 Cities Average, as is now done for the other impact fees in January.
As shown in Table 4 of the report, the recommended capacity impact fee also includes a separate fee,
"high-strength connections", which is broken down into flow, BOD, and TSS components. BOD (Biochemical
Oxygen Demand) and TSS (Total Suspended Solids) are measures of the 'strength' of the wastewater. With
the addition of tertiary treatment this year, the relative weight among these components has shifted with a
higher cost increase for flow than for the other constituents.
Finally, the staff recommendation on the capacity impact fee does not include a component for the Public
Art Program. This recommendation is based on the fact that a significant portion of the proposed fee is
for past improvements made at WSWPCF. These improvement projectswere not designated to include
Public Art nor did they contribute to the Public Art Fund. Should the Council wish to include the full
Public Art component, the fee should be increased by 2%. from $5.115 to $5,217. Another option would
be to only include the art component in future projects. Based on the projects/financings shown in Table
1 of the report, and considering the future 2006 project, Master Plan and MSC projects, these represent
half of the costs, therefore, a 1 % Public Art fee would be appropriate ($5,115 to $5,166). The appropriate
amount will be included in the Fee Resolution as directed by the Council as shown below.
In summary, the recommended changes in the sewer development fees are:
Current Proposed wlo Art w11 % Art w12% Art
Moderate Strength Users
$2,052.00
$572.79
$338.64
$468.23
Per SSU - current
$2,099.00
nla
nla
nla
Per RAE (residential acre equivalent)
$583.00 (approximately $116.60 per dwelling unit)
Per SSU — revised (approximately) $2.215.60
$5,115
$5,166
$5,217
High Strength Users
Flow (per MG, annual basis)
$11,192.96
$38,986
$39,376
$39,766
BOD (per 1,000 lbs., annual basis)
$4,610.56
$10,097
$10,198
$10,299
TSS (per 1,000 lbs., annual basis)
$2,076.43
$5,400
$5,454
$5,508
High Strength Users Service Fees
"High Strength Users" are defined in the Municipal Code as users who discharge over 2 million gallons per
year or the waste strength exceeds certain parameters. Presently there are only eight customers in this
category. Similar to the capacity fee, the relative weight of flow and strength is also reflected in treatment
costs, and adjustments for the high-strength users service charges are also being recommended:
Flow (per MG, annual basis)
BOD (per 1,000 lbs., annual basis)
TSS (per 1,000 lbs., annual basis)
Current Proposed
$1,170.45
$2,052.00
$572.79
$338.64
$468.23
$211.73
J 11 MFeesSWastewater Fees1CPHAdoptFee doc 1213012005
Public Hearing to Adopt Ordinance and Resolution for Updated Wastewater Capacity Impact Fee and
Service Charges for High Strength Users
January 4, 2006
Page 3
The effect of these changes on any individual user will depend on their individual flow and strength
characteristics, however, in looking at past data, charges for nearly all will go down.
At the conclusion of the public hearing, Council is requested to adopt the ordinance revising the
Municipal Code and adopt the resolution setting the wastewater capacity impact fee. The updated fee
will become effective 60 days following adoption of the resolution per State law, which translates to
Monday, March 6, 2006.
FISCAL IMPACT: The additional utility revenue from the capacity fee will be significant, but
the actual amount will obviously depend on development levels. Revenue
in FY 04105 was $1.44 million. The change in the service charges for
high-strength users, based on current usage, will reduce annual revenue by
approximately $200,000.
FUNDING AVAILABLE: Not applicable.
11Q�"
qo( Richard C. Prima, Jr.
Public Works Director
Prepared by F. Wally Sandelin. City Engineer
RCPIFWS/pmf
Attachment
cc: Interested Parties
J MIMFeesMastewater Fees\CPHAdoplFee.doC 12!29/2005
AGENDA ITEM 1-1
AOL CITY OF LODI
kv COUNCIL COMMUNICATION
TM
AGENDA TITLE: Ordinance No. 1768 Entitled, "An Ordinance of the City Council of the City of Lodi
amending Lodi Municipal Code relating to the establishment of wastewater
development impact fees by amending Lodi Municipal Code Title 13 — Public
Services — Chapter 13.12, "Sewer Service," by repealing and reenacting Sections
13.12.020 (5) and (45), 13.12.180 (A), and 13.12.190; and further amending Title
15 — Buildings and Construction — Chapter 15.64, "Development Impact Mitigation
Fees," by amending Section 15.64.10 — adding new paragraph "F" and relettering
paragraphs (G) and (H) — repealing and reenacting Sections 15.64.030 (A) and
15.64.040, amending Section 15.64.060 — adding paragraph "C" — and repealing
and reenacting Section 15.64.070(B)"
MEETING DATE: January 4,2006
PREPARED BY: City Clerk
RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title)
adopting the attached Ordinance No. 1768.
BACKGROUND INFORMATION: Ordinance No. 1768 entitled, "An Ordinance of the City Council of
the City of Lodi amending Lodi Municipal Code relating to the
establishment of wastewater development impactfees by amending
Lodi Municipal Code Title 13 — Public Services — Chapter 13.12,
"Sewer Service," by repealing and reenacting Sections 13.12.020 (5) and (45), 13.12.180 (A), and
13.12.190; and further amending Title 15 — Buildings and Construction — Chapter 15.64, "Development
Impact Mitigation Fees," by amending Section 15.64.10 — adding new paragraph "F' and relettering
paragraphs (G) and (H) — repealing and reenacting Sections 15.64.030 (A) and 15.64.040, amending
Section 15.64.060 — adding paragraph "C" — and repealing and reenacting Section 15.64.070 (B)" was
introduced at the regular City Council meeting of December21, 2005.
ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of
its introduction. Two readings are therefore required — one to introduce and a second to adopt the
ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting;
except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances
must be read in full either at the time of introduction or at the time of passage, unless a regular motion
waiving further reading is adopted by a majority of all council persons present. Cal. Gov't Code§ 36934.
Ordinances take effect 30 days after their final passage. Cal. Gov't Code§ 36937.
This ordinance has been approved as to form by the City Attorney.
FISCAL IMPACT: None.
FUNDING AVAILABLE: None required.
Susan J. Blacksto
City Clerk
sJB
Attachment
APPROVED:
Blair King, City Manager
councii/counoom/OrdinanceMoc
ORDINANCE NO. 1768
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING
LODI MUNICIPALCODE TITLE 13- PUBLIC SERVICES -CHAPTER 13.12,
"SEWER SERVICE," BY REPEALING AND REENACTING SECTIONS
13.12.020 (5) AND (45), 13.12.180 (A), AND 13.12.190; AND FURTHER
AMENDING TITLE 15 - BUILDINGS AND CONSTRUCTION -CHAPTER 15.64,
"DEVELOPMENT IMPACT MITIGATION FEES," BY AMENDING SECTION
15.64.010 -ADDING NEW PARAGRAPH" F AND RELETTERING
PARAGRAPHS (G) and (H) - REPEALING AND REENACTING SECTIONS
15.64.030 (A) AND 15.64.040, AMENDING SECTION 15.64.060 -ADDING
PARAGRAPH "C" -AND REPEALING AND REENACTING SECTION
15,64.070 (B) RELATINGTO THE ESTABLISHMENTOF WASTEWATER
DEVELOPMENT IMPACT FEES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS:
Section 1. Lodi Municipal Code Title 13, "Public Services," Chapter 13.12, "Sewer Service," is
herebyamended by repealingand reenacting Sections 13.12.020 (5) and (45), 13.12.180 (A), and
13.12.190 and shall read as follows:
13.12.020 Definitions.
5. "Capacity" or "Impact fee" means a charge as described in this chapter, levied on construction
or on new, expanded, or ongoing activity, which uses publicly-ownedtreatment works (POTW )
capacityand other wastewater facilities associated with growth. The fee is normally paid at the
time of issuance of a building permit.
45. "Sewage service unit or S S U is defined as each increment of flow equal to the flow from an
average two-bedroom residence (one -hundred and ninety-four gallons per day) and having a
strength less than three hundred milligrams per liter biochemical oxygen demand (BOD) and
suspended solids (SS).
13.12.180 Domestic system service charges.
A. Basis. Charges for use of the domestic system shall be determined by the volume, BOD, and
SS of wastes discharged. In addition, charges for preparation and maintaining the Sewer
Master Plan, expansion of the Public Works Administration Building, and expansion of the
Public Works Storage Facilities are allocated based upon volume, BOD, and SS.
13.12.190 Domestic system capacity or impact fees.
The capacityfee shall cover the capital cost associated with the POTW capacityand the planning,
financing, acquisition, and development of other services and facilities directly related to the
utilization of capacity bythe discharger. Any actual costs incurred bythe city in makingthe physical
connection (tap) shall be separate and in addition to the capacity fee described in this section.
A. Moderate -strength user capacity fees shall be based on a rate per sewage service unit as
assigned under Section 13.12.180. The capacity fee for a new commercial or industrial user
shall be a minimum of one sewage service unit, and additions or modificationsshall be prorated
to fractions of sewage service units.
B. High-strength user capacity fees shall be based on a unit rate for flow, BOD, and SS. The
estimated annual quantities of each characteristic shall be justified to, and approved by, the
Public Works Directorfor the purpose of determining the capacity fee.
C. City projects and projects funded by the City are exemptfrom capacityfees as described in this
section.
Section 2. Lodi Municipal Code Title 15, "Buildings and Construction," Chapter 15.64,
"Development Impact Mitigation Fees," is herebyamended by amending §15.64.10 —adding new
paragraph F and relettering paragraphs G and H — repealing and reenacting §§15.64.030 (A) and
15.64.040, amending §15.64.060 — adding paragraph (C) — and repealing and reenacting
§15.64.070 (B) and shall read as follows:
15.64.010 Findings and purpose.
F. The specific improvementsand costs for wastewater capacity impactfees are described inthe
City of Lodi Wastewater Capacity Fees Analysis prepared for the City by Hilton, Famkopf &
Hobson, LLC, dated August 15, 2005, and the Development Impact Fee Update Study
preparedfor the City by Harris& Associates, dated October2001, copies of which are on file
with the City Clerk. The calculation of the fee is presented in Title 13, Chapter 13.12 of the Lodi
Municipal Code.
G. New development will generate new demand for facilities which must be accommodated by
construction of new or expanded facilities. The amount of demand generated and, therefore,
the benefit gained, varies according to kind of use. Therefore, a "residential acre equivalent"
(RAE) factor was developed to convert the service demand for general plan based land use
categories into a ratio of the particular use's rate to the rate associated with a low-density,
single-family dwelling gross acre. The council finds that the fee per unit of development is
directly proportional to the RAE associated with each particular use.
H. The city has previously approved various development projects which have made significant
financial expenditures towards completion, including the payment of the then current
development impact mitigation fees: but have not obtained a building permit. The city council
finds and declares that such projects should be allowed to proceed without the imposition of
new development impact mitigation fees imposed under this chapter.
15.64.030 Development impact funds.
A. The city finance director shall create in the city treasury the following special interest-bearing
trust funds into which all amounts collected under this chapter shall be deposited:
1. Water facilities:
2. Sewer facilities:
3. Storm drainage facilities;
4. Street improvements;
5. Police facilities:
6. Fire facilities;
7. Parks and recreation facilities;
8. General city facilities and program administration.
15.64.040 Payment of Fees.
A. The property owner of any development project causing impacts to publicfaciIitiesshalI
paythe appropriate development mitigationfee as provided in this chapter. The amount shall
be calculated in accordance with this chapter and the program fee as established by council
resolution.
B. When such payment is required by this chapter, no building permit or site development
permit shall be approvedfor propertywithin the city unless the development impact mitigation
fees for that propertyare paid or guaranteed as provided in this chapter.
2
C. The fees shall be paid with the approval of a final subdivision map, building perp tors*,T
development permit, whichever occurs first except as provided in subsection (E) or (F') of ttW
section.
D. If a final subdivision map has been issued before the effective date of the ordtn4n[ ;
codified in this chapter, then the fees shall be paid before the issuanceof a buildingpermit _ ,
grading permit, whichever comes first except as exempted under Section 15.64.110 ofi< ;
chapter.
E. Where the development project includes the installation of public improvements, tto .
payment of fees established by this chapter may be deferred and shall be collected prior to
acceptance of the public improvements by the city council. Paymentof all deferredfeesst ,
be guaranteed by the owner prior to deferral. Such guarantee shall consist of a sufity bond,
instrument of credit, cash, or other guarantee approved by the city attorney.
F. The fees may not be prepaid unless specified otherwise in a fee paymentagreement car
development agreement approved by the City Council.
G. Notwithstanding the above, City may collect subsequent increases in impactfeemor ne.w
impactfees, unlessthe development project is exemptfromfee increases under the termsdf
a fee payment agreement approved by Council, a Development Agreement approved by
Council or California law.
15.64.060 Calculation of fees.
C. Sewer fees shall be calculated and collected per LMC 13.12.
15.64.070 Residential acre equivalent factor.
B. The residential acre equivalent (RAE) factors are as set out in the following tablle.
3
Storm
Parks &
General
Land Use
Water
Drainage
Streets
Police
Fire
Recreation
Facilifles
Categories
RAE
RAE
RAE
RAE
RAE
RAE
RAE
RESIDENTIAL
Low Density
1.O0
1.00
1.00
1.00
1.00
1.00
1.00
Medium Density
1.96
1.00
1.96
1.77
1.96
1.43
1.48
High Density
3.49
1.00
3.05
4.72
4.32
2.80
2.80
East Side
Residential
1.00
1.00
1.00
1.09
1.10
1.10
1.10
PLANNED
RESIDENTIAL
Low Density
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Medium Density
1.96
1.00
1.96
1.77
1.96
1.43
1.43
High Density
3.49
1.00
3.05
4.72
4.32
2.80
2.80
COMMERCIAL
Retail
Commercial
0.64
1.33
2.08
4.12
2.69
0.32
0.89
Office
Commercial
0.64
1.33
3.27
3.72
2.46
0.54
1.53
INDUSTRIAL
Light Industrial
0.26
1.33
2.00
0.30
0.64
0.23
0.64
Heavy Industrial
0.26
1.33
1.27
0.19
0.61
0.33
0.93
3
Section 3 - No Mandatory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a manner which imposes upon the City, or any officer or employee
thereof, a mandatoryduty of care towards persons or propertywithin the City or outside of the City
so as to provide a basis of civil liabilityfor damages, except as otherwise imposed by law.
Section 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as
such conflict may exist.
Section 5. This ordinance shall be published one time in the "Lodi News Sentinel," a daily
newspaperof general circulation printed and published inthe Cityof Lodi, and shall be in force and
take effect 30 days from and after its passage and approval.
Attest:
Approved this Ott' day of January, 2006.
SUSAN SLACKST SU.KAN HITCHCOCK
City Clerk Mayor
State of California
County of San Joaquin, ss.
I, Susan J. Blackston, City Clerk of the City of Lodi, do hereby certify that Ordinance
No. 1768 was introduced at a regular meeting of the City Council of the City of Lodi held December
21, 2005, and was thereafter passed, adopted, and ordered to print at a regular meeting of said
Council held January 4, 2006, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, and Mounce
NOES: COUNCIL MEMBERS—Johnson and Mayor Hitchcock
`ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
I further certify that Ordinance No. 1768 was approved and signed by the Mayor of the date of its
passage and the same has been published pursuantto law.
Approved as to Form:
0. SPF E7M SCHWAB
City Attorney
4
�Nt .,:::
SUSAN J. BLACKSTON
City Clerk
RESOLUTION NO. 2006-06
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING UPDATED WASTEWATER CAPACITY
IMPACT FEES
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi
does hereby approve Wastewater Capacity Impact Fees as follows:
WASTEWATER CAPACITY IMPACT FEES
$10,198.00
Fees
NOTE. Includes I% Public Art flee
Moderate Strength Users
Per SSU —current
n/a
Per RAE (residential acre equivalent)
$ 583.00
(approximately $116.60 per dwelling unit)
Per SSU —revised
$ 5,166.00
rHlah Strength Users
Flow (Der MG. annual basis)
$39.376.00
BOD (per 1,000 lbs., annual basis)
$10,198.00
SS (per 1.000 lbs.. annual basis)
$ 5,454.00
BE IT FURTHER RESOLVED that the Wastewater Capacity Impact Fees shall
be adjusted annually on July 1, based on the past annual change in the Engineering
News Record 20 Cities Construction Cost Index; and
BE IT FURTHER RESOLVED that this Resolution shall take effect March 6,
2006 (60 days following the final adoption of Ordinance No. 1768).
Dated: January 4,2006
I hereby certify that Resolution No, 2006-06 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 4, 2006, by the following
vote:
AYES: COUNCIL MEMBERS —Beckman, Hansen, and Mounce
NOES: COUNCIL MEMBERS—Johnson and Mayor Hitchcock
ABSTAIN: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— None
SUSAM J. STON
City Clerk
2006-06
RESOLUTION NO. 2006-07
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING HIGH STRENGTH USERS SERVICE FEES
WHEREAS, "High Strength Users" are defined in the Lodi Municipal Code as
users who discharge over 2 million gallons per year or the waste strength exceeds
certain parameters. Similar to the Wastewater Capacity Impact Fee, the relative weight
of flow and strength is reflected in treatment costs, and adjustments for the high-
strength users' service charges are being recommended.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi
does hereby approve High Strength Users Service Fees as follows:
HIGH STRENGTH USERS
SERVICE FEES
Fees
Flow (per MG, annual basis)
$2,052.00
BOD (per 1,000 lbs.. annual basis)
$ 338.64
SS (per 1,000 lbs., annual basis)
$ 211.73
BE IT FURTHER RESOLVEDthat this Resolution shall take effect immediately.
Dated: January 4,2006
hereby certify that Resolution No. 2006-07 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 4, 2006, by the following
vote:
AYES: COUNCIL MEMBERS—Beckman, Hansen, and Mounce
NOES: COUNCIL MEMBERS — Johnson and Mayor Hitchcock
ABSTAIN: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
SUSAN J. BLA STON
City Clerk
2006-07
PROOF OF PUBLICATION
(2015.5 C.C.C.P.)
STATE OF CALIFORNIA
County of San Joaquin
I am a citizen of the United States and a resident
of the County aforesaid I am over the age of
eighteen years and not a party to or interested
in the above entitled matter. I an the principal
clerk of the printer of the Lodi News -Sentinel, a
newspaper cf general circulation, printed and
published daily except Sundays and holidays, in
the City of Lodi, California, County of San Joaquin
and which newspaper had been adjudicated a
newspaper of general circulationby the Superior
Court, Department 3, of the County of San Joaquin,
State of California, under the date of May 26th,
1953. Case Number 65990; that the notice of which
the annexed is a printed copy (set in type not
smallerthan non-pareil) bas been published in
each regular and entire issue of said newspaper
and not in any supplement thereto on the following
dates to -wit:
December3rd,
.................................................................................
all in the year 2005.
I certify (or declare) under the penalty of perjury
that the foregoing is true and correct.
Dated at Lodi, California, this 3rd day of
Dece r, 005
M_
This space is for the County Clerk's Filing Stamp
Proof of Publication of
pecial Notice of Public HwedxgforJanuary 4,2006,
eview the P=posed Wastewater Capacity Fbe,
rovide Direction to ConsiderAdoption of the Fee
-01
on Wednesday. January 4, 1111111■
at the hour of 700 p.m., or as
soon thereafter as the matter may
be heard, the City Council will
conduct a public hearing at the
Camegie Forum, 305 West Pine
Ifyou challenge the subact mat-
ter In court, you may be Mited to
raising only those issues you or
someone else raised at the
notiublic hearing described in this
ce . in wniten correspcn-
P-, dence delivered to the !! C
221 West Pirie street, armor
M to the close of the public hearing.
Signature 1 8502466
Pe immediately
of this fax by caffiWg 33Xp
6IM1
CITY OF LODI
P.O. BOX 3006
LODI. CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT SPECIAL NOTICE OF PUBLIC HEARING FOR JANUARY 4,2006, REVIEW
THE PROPOSED WASTEWATER CAPACITY FEE, PROVIDE DIRECTION TO CONSIDER
ADOPTION OF THE FEE.
PUBLISH DATE: DECEMBER 3,2005
TEAR SHEETS WANTED: Three (3) please
SEND AFFIDAVIT AND BILL TO: SUSAN BLACKSTON, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: TUESDAY NOVEMBER 29,2005
ORDERED BY:
JENNIFER M. PERRIN, CMC
DF/PUTY CITY CLERK
TAAkl 1"1• P.1 Iallk■Ail
ADMINISTRATIVE CLERK
Faxed to the Sentine!I
US M P- Phon
forms+advins.doc
SUSAN J. BLACKSTON
CITY CLERK
JACQUELINE L. TAYLOR, CMC
DEPUTY CITY CLERK
• CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
IF
NOTICE OF PUBLIC HEARING
Date: January 4,2006
Time: 7:00 p.m.
For information regarding this notice please contact:
Susan J. Blackston
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, January 4, 2006 at the hour of 7:00 p.m., or as soon
thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum,
305 West Pine Street, Lodi, to consider the following matter:
a) Adoption of Wastewater Capacity Fees
Information regarding this item may be obtained in the Public Works Department, 221 West Pine Street, Lodi,
California. Ali interested persons are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk at any time prior to the close of the hearing scheduled herein, and
oral statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only those issues you or someone
else raised at the public hearing described in this notice or in written correspondence delivered to the City
Clerk, 221 West Pine Street, at or prior to the close of the public hearing
By Order of the Lodi City Council:
--
e�'
Susan J. Blackston U
City Clerk
Dated: November 22.2005
Approved as to form:
D. Stephen Schwabauer
City Attorney
J:%CITYCLRKSFORMSTH NOTICE puNicalion MASTER forLNS.doc 11128105
DECLARATION OF POSTING
PUBLIC HEARING FOR JANUARY 4,2006, REVIEW THE PROPOSED
WASTEWATER CAPACITY FEE, PROVIDE DIRECTION TO CONSIDER ADOPTION
OF THE FEE
On Friday, December2, 2005, in the City of Lodi, San Joaquin County, California, a notice of
public hearing to review the proposed wastewater capacity fee, provide direction to consider
adoption of the fee was posted at;
Lodi Public Library
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
I declare under penalty of perjury that the foregoing is true and correct.
Executed on December 2, 2005, at Lodi, California.
JENNIFER M. PERRIN, CMC
DEPUTY CITY CLERK
io Z�,
NA R. CH PMAN
ADMINISTRATIVE CLERK
N:IAdministration\CLERK\FormsIDECPiIST.DOC
SUSAN J. BLACKSTON
CITY CLERK
JACQUELINE L. TAYLOR, CMC
DEPUTY CITY CLERK
DECLARATION OF MAILING
PUBLIC HEARING FOR JANUARY 4,2006, REVIEW THE PROPOSED WASTEWATER
CAPACITY FEE, PROVIDE DIRECTION TO CONSIDER ADOPTION OF THE FEE
On November 29,2005, in the City of Lodi, San Joaquin County, California, I deposited in the
United States mail, envelopes with first-class postage prepaid thereon, to review the proposed
wastewater capacity fee, provide direction to consider adoption of the fee.
There is a regular daily communication by mail between the City of Lodi, California, and the
places to which said envelopes were addressed.
I declare under penalty of perjurythat the foregoing is true and correct.
Executed on November 29, 2005, at Lodi, California
ORDERED BY:
JENNIFER M. PERRIN, CMC
DEPUTY CITY CLERK
kf"Noy-) y)cLf
DANA R. CHAPMAN
ADMINISTRATIVE CLERK
Forms/decmaildoc
ORDERED BY:
SUSAN BLACKSTON
CITY CLERK, CITY OF LODI
JACQUELINE L. TAYLOR, CMC
DEPUTY CITY CLERK
M'AW,
LODI CA 95241-1510
11,I,,,I,f,,,Itill ,1I,,,II,,,il,l,l,,,,l11111111J llII,,,
DENNISBENNETT& STEVE MOORE
MPA-WELOPMENT
LODI CA 95242
FI)WARD BARKETT
ATLAS PROPERTIES INC DELMAR BATCH
2800 W MARCH LN STE 250 11174 N DAVIS RD
STOCKTON CA 95219=&J,6 LODI CA 95242
VIC DEMAYO STEVE SINNOCK
BROWMAN DEVELOPMENT KJELDSEN SINNOCK & NEUDECK
100 SWAN WY STE 206 PO BOX 844
OAKLAND CA 94621 STOCKTON CA 95201-0844
CECIL DILLON JOHN FARROS
DFLLON & MURPHY ENGINEERING GEWEKE PROPERTIES
PO BOX 2180 PO BOX 1210
LODI CA 95241-2180 LODI CA 95241
WAYNE CRAIG
SANDHILL DEVELOPMENT
2424 COCHRAN RD STE 1
LODI CA 95242
JEFFREY KIRST
FOKAY DEVELOPMENT INC
'O BOX 1259
NOODBRIDGE CA 95258
MARK CHANDLER EXEC DIR
LODI WOODBRIDGE GRAPE COMM
2575 W TURNER RD
LODI CA 95242
MAMIE STARR
LUSD
1305 E VINE ST
LODI CA 95240
LOWELL FLEMMER
KATZAKIAN WILLIAMS SHERMAN
777 S HAM LN STE A
LODI CA 95242
STEVE ROBERTS
HARRIS & ASSOCIATES
35 E 10TH ST STE A
TRACY CA 95376
STEVE PECHIN
BAUMBACH & PIAZZA INC
323 W ELM ST
LODI CA 95240
)ARRELL SASAKI
RON THOMAS
LEX CORALES
]RS REAL ESTATE APPRAISALS
R THOMAS DEVELOPMENT INC
SIEGFRIED &ASSOCIATES
1806W KETTLEMAN LN STE 1
PO BOX 1598
4045 CORONADO AVE
.ODI CA 95242
LODI CA 95241-1598
STOCKTON CA 95204
YENTLAND SNIDER MCINTOSH
LWM SOUTHWEST INC
TOM DOUCETTEIJIM JIMISON
101 S HAM LN STE A
PO BOX 414
FRIORT!ERS
ODI CA 95242
PACIFIC PALISADES CA 90272
3247 W MARCH LN STE 222
I,l,1,l,l,t,l,l,l,1l1,l,fl„1,1
II�I�,II�,�,�I�II,�,I,�I�III�„I
STOCKTON CA 95219
ZUSS MUNSON
TOM DAVIS
VINE & ROSES
LEE &ASSOCIATES
VIN SHARRAR
IN
KEVIN
1505W TURNER RD
241 FRANKWEST CIR STE 300
THE DELTA
.ODI CA 95242
STOCKTON CA 95206
509 W WEBER AVE STE 410
I,I,t,l,l,t,l,l,l,1ltt1,J1„1,1
II,I,,,I,I,,,I,III,,,,II„1.11,1
STOCKTON CA 95203-3167
AICHAEL E LOCKE CEO
;AN JOAQUIN PARTNERSHIP
1800 W MARCH LN STE 470
STOCKTON CA 95219
RICK CHURCHILL
PROFESSIONAL CONSTRUCTORS
5635 STRATFORD CIR STE C45
STOCKTON CA 95207
ED CORNEJO
KB HOME NORTH BAY INC
2420 DEL PASO RD
SACRAMENTO CA 95834
'AT PATRICK
_ODI CHAMBER OF COMMERCE DR CHRIS KESZLER THOMAS SMITH
15 S SCHOOL ST 816 W LODI AVE FOX CREEK DEVELOPMENT INC
CA 95240 LODI CA 95240 1171 QUARTZ DR
.ODI
.ODD AUBURN CA 95602
j�f���'1�1U I fI'r�J1f
CLUFF LLC JOHN COSTAMAGNA KRISTMONT WEST INC
908 W TURNER RD PO BOX 131 7700 COLLEGE TOWN DR STE 111
LODI CA 95242 WOODBRIDGE CA 95258 SACRAMENTO CA 95826
ANTONIO CONTI
CONTI &ASSOCIATES INC
PO BOX, 1396
WOODBRIDGE CA 95258
MADE BROUGHTON
3ENERAL MILLS OPERATIONS
2000 W TURNER RD
_ODI CA 95242
DAVID DUGGINS
CERTAINTEED CORP
300 S BECKMAN RD
LODI CA 95240
MARCIANO DEL CASTILLO
LA COMPANA
2346 MAGGIO CIR
LODI CA 95240
TERRY KNUTSON
COTTAGE BAKERY
40 NEUHARTH DR
LODI CA 95240
REGGIE MASON
LODI CHROME
316 N MAIN ST
LODI CA 95240
:.HRIS COLBERT VICTOR LEWKOWITZ DENNYGOMES
_USTRE CAL NAMEPLATE CORP MILLER PACKING RE SERVICE CO
715 S GUILD AVE 1122 INDUSTRIALWY 500 S BECKMAN RD
_ODI CA 95240 LODI CA 95240 LODI CA 95240
CITY COUNCIL
SUSAN HITCHCOCK. Mayor
BOBJOHNSON
Mayor Pro Ternpore
JOHNBECKMAN
LARRY D.HANSEN
JOANNE L. MOUNCE
CITY OF LODI
PUBLIC WORKS DEPARTMENT
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
EMAIL pwdept@lodi.gov
http:\\www.lodi.gov
December 30, 2005
BLAIR KING
City Manager
SUSAN J. BLACKSTON
City Clerk
0. STEVEN SCHWABAUER
City Attorney
RICHARD C. PRIMA, JR.
Public Works Director
SUBJECT: Public Hearing to Adopt Ordinance and Resolution for Updated
Wastewater Capacity Impact Fee and Service Charges for High Strength
Users
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, January 4, 2006. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
The Council will conduct a public hearing on this item. You are welcome to attend and
speak at the appropriate time.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P.O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Susan Blackston, City Clerk, at (209) 333-6702.
If you have any questions about the item itself, please call Wally Sandelin at
(209) 333-6706.
Richard C: Prima, Jr.
Public Works Director
RCPldrr
Enclosure
cc: Citv Clerk
NCCMTG.DOC
EDWARD BARKETT
A FRED BAKER DELMAR BATCH
PO BOX 1510 ATLAS PROPERTIES INC 11 174 N DAVIS RD
2800 W MARCH LN STE 250
LORI CA 95241-1510 1 STOCKTON CA 952J19-8218 LODI CA 95242
IIiIIIl IlI1111111I11i 1F111111I 11111{{ IIII 11 11 li 11 it 11 11 11 ii FIt1111Illt IIIt11III1i1111111111111111IIIIIIIIIIIII1111 IIIIE111111I11111111IIIIIIil1111
ppNNIS BENNETT DARYL BROWMAN STEVE SINNOCK
�Djj NNETT DEVELOPMENT BROWMAN DEVELOPMENT KJELDSEN SINNOCK & NEUDECK
p0 BOX 1597 100 SWAN WY STE 206 PO BOX 844
LODI CA 95241 OAKLAND CA 94621 STOCKTON CA 95201-0844
lilllElltIIIIIIIIIIIIIFIkIII,iII illl{1lIIIIIIIIIIIIIIIIIiIiEIIII IIIIIIIIIIIIIIIIIIIIIFIIIiII11tI11If1I11lllltlll111
CECIL DILLON DALEGILLESPIE
DILLON & MURPHY ENGINEERING GEWEKE PROPERTIES
PO BOX 2180 PO BOX 1210
LODI CA 95241-2180 LODI CA 95241
1111,1,11111,iJF11111Ftll,ILIFIIIIIIFIFII,IIIIJ11111,1 IIIi1,tI1111JJ1111111F11111,11
JOHN GIANNONI
GIANNONI DEVELOPMENT
2960 APPLEWOOD DR
LODI CA 95242
JEFFREY KIRST
TOKAY DEVELOPMENT INC
PO BOX 1259
WOODBRIDGE CA {95258
IIIi1ltlli[IIIEI IIIIIIIIIIII IiiI
DARRELL SASAKI
DRS REAL ESTATE APPRAISALS
1806 W KETTLEMAN LN STE 1
LODI CA 95242
II II tI EI II 11111i1111i11i11I1111I
WENTLAND SNIDER MCINTOSH
301 SHAM LN STE A
LODI CA 95242
111{,1111 IFiIIII III II1tiIII11I1I
RUSS MUNSON
WINE & ROSES
.7505 W TURNER RD
LODI CA 95242
Illilllillllllllllltl1111ii1111I
MICHAEL E LOCKE CEO
SAN JOAQUIN PARTNERSHIP
2800 W MARCH LN STE 470
STOCKTON CA 95219
lilllllllllllili111iiiliI111111I
MARK CHANDLER EXEC DIR
LODI WOODBRIDGE GRAPE COMM
2575 W TURNER RD
LODI CA 95242
it11llllll[fiiiilillillillltll[I
MAMIE STARR
LUSD
1305 E VINE ST
LODI CA 95240 t
IIII IIIlliliti ll lltlllllllllllli
RON THOMAS
R THOMAS DEVELOPMENT INC
PO BOX 1598
LODI CA 95241-1598
iI111F 11111 I,I,I,I,IIIIJiIE1111LLLltfllllllllllll111i
LWM SOUTHWEST INC
C/O WENTLAND HAMMOND
301 S HAM LN STE A
LODI CA 95242
ED CORNEJO
KB HOME NORTH BAY INC
2420 DEL PASO RD
SACRAMENTO CA 95834
THOMAS SMITH
FOX CREEK DEVELOPMENT INC
1171 QUARTZ DR
AUBURN CA 95602
LOWELL FLEMMER
KATZAKIAN WILLIAMS SHERMAN
777 S HAM LN STE A
LODI CA 95242
IIII[111 [IEIIIIIIIIIi111 Eii11111
RICK CHURCHILL
PROFESSIONAL CONSTRUCTORS
5635 STRATFORD CIR STE C45
STOCKTON CA 95207
STEVE PECHIN
BAUMBACH & PIAZZA
323 W ELM ST
LODI tCA 95240
IIIIIIIili111I1I1111111111i I1Ili
LEX CORALES
SIEGFRIED & ASSOCIATES
4045 CORONADO AVE
STOCKTON CA 95204
IllllIIIIIIilIIi1111I11111111
TOM DOUCETTE/JIM JIMISON
FRONTIERS
10100 TRINITY PKWY STE 420
STOCKTON CA 95219
KEVIN SHARRAR
BIA OF THE DELTA
509 W WEBER AVE STE 410
STOCKTON CA 95203-3167
CHUCK EASTERLI NG
HESSELTINE REALTY
222 W LOCKEFORD ST STE 3
LODI CA 95240
Iillll[III,t,I,I1LIllllllll,tti
PAT PATRICK DR CHRIS KF.SZLER RIC[ IARU HANSON
LODI CHAMBER OF COMMERCE 816 W LODI AVE CLUFF LLC
35 S SCHOOL ST LODI CA 95240 908W TURNER RD
LODI CA 95240 iilll,lllltllllill[Iliinliiil,l LODI CA 95242
IIII I1111IIIIi111I1tIIIl11Ii 1111
JOHN COSTAMAGNA KRISTMONT WEST INC CONTTN ASSSOCIATES INC
PO BOX 131 7700 COLLEGE TOWN DR STE 11 1 PO BOX 1396
WOODBRIDGE CA 95258 SACRAMENTO CA 95826 WOODBRIDGE CA 95258
WAYNE CRAIG
SANDHILL DEVELOPMENT
2424 COCHRAN RD STE 1
LODI CA 95242
r -
HILTON FARMCOPF & HOBSON, LLC
Advisory Services to
Municipal Mana�ernent
2175 North California Boulevard, Suite 940
Walnut Creek, California 915%
Tel (925) 977.6954
Fax (925) 977-6955
hflr-consultants com
August 15,2005
Mr. Richard C. Prima
Director of Public Works
City of Lodi
221 West Pine Street
Lodi, CA 96241-1910
Subject: Wastewater Capacity fees: Revised Analysis
Dear Mr. Prima:
The purpose of this letter is to present the nesults of our analysis of the City's
wastewater capacity fees.
Current Capacity Fees
The City has two sewer development fees that are charged to new connections. The
fees are based on either sanitary sewer units (SSUs)l or acreage. The fee based on
sanitary sewer units is called the "capacity fee" and is intended to recover the cost Cf
treatment and disposal facilities. The current capacity fee is $2,099 per SSU.
The feebased on acreage is called the "development impact mitigation fee" (DIMF) and
is intended to recover the cost cf other facilities that are not directly related to heahnent
or disposal but are still integral with the sewer system, such as the SewerFund"5 511are
of the corporation yard. The DIMF varies depending on land use, ranging from $583
per acre for low-density residenhal development to $2,035 per acre for high-density
l Sanitary sewer units are based on a system of equivalencies specified in Article 111., sermon 13.12180of
the Lodi Municipal Code. For residential connections, one SSU equals a two—bedroom residence. A one -
bedroom residence equals 0.75SSUs and each additional bedroom equals 0.25 SSUs. For non-residential
SSUs, 30 different parameters are used to establish the number of SSW, such as the number of seats for
restaurants, the number of machines for laundries, the number of students forschools,the number of
employees forgrocery stores, etc,. For high-strengthconnectiom, estimates offlow, BOD,and SS are
ttsed,
Richard C. Prima
August 15,2005
Page 2
residential development with other intervening rates fo -non-residential development,
For a typical home with a density of five units per acre, the DIMF is $116.60.
Capacity Fee Methodology
Capacity fees represent the unit cost of capacity paid by new connections to ensure that
they contribute their fair share of capital costs. In calculating capacity fees, it is
important to correlate the facilities with the corresponding connections to establish the
"nexus" or relationship required by the Mitigation Fee Ac (,2 The unit cost is the ratio of
the value of the facilities divided by the corresponding connections. Of the commonly
recognized methods for calculatingcapacity fees, we used the incremental approach,
which calculates the unit cost of the growth -related portion of system expansion.
Lin)i ce the City's current capacity fee and DIW, we do not distinguish between
wastewater treatment/ disposal facilities and other support facilities like corporation
yards, which do not provide capacity per se, The City is not unique in differentiating
between connection-basedand acreage -based components of capacity fees. We are
aware o f other water and sewer agencies with a similar bifurcation. Although i t is
possible to distinguish between the two types of facilities, we see no cornpelii.ng logic to
denominate certain facilities by capacity and others by acreage. Hence, we combined all
facilities into a single capacity fee that is denominated by connections. This approach is
simpler, which may explain why it is more prevalent.
INCREMENTAL COST CALCULATION
Under the incremental cost approach, the cost of expansion attributable to growth is
divided by the growth -related capacity to determine the unit cost of growth. Table I
shows the costs associatedwith upgrades for existing users and with expansion for new
users. The majority of these costs are the debt service on the three outstanding bonds
that have been issued and one bond planned for 2006.
The debt service cost includes principal and interest as part of the value cf the facilities.
Interest is often mistakenly excluded in capacity fee calculations under the
misapprehension that double counting will not occur. In other words, it is thought that
new connections will pay the interest in both the capacity fee and later through sewer
2 Government Code 66000el seq..
The incremental costs of debt servzce are allocated to growth based on the portion of
capacity that is related to expansion. In the case of the 1991 improvements (which
refinanced the 1989 improvements), 74% (2.7 mgd added to 5.8 mgd for a total of 8.5
mgd) was related to growth. The 2003 (Phase 12003/2004 improvements), 2004 (Phase
11 2004/2005 improvements), and 2006 (Phase 111 2006/2007 improvements) bonds were
allocated based on the expansion related capacity (2.2mgd added to 6.3 mgd of current
flow for a total of 8.5 mgd3) of each of the urmt processes included in each of the three
phases of unprovernents. Attachment lis included to show the detailed allocations that
were performed to derive the growth alloca Hans in Table 1 for the 2003,2004, and 2006
improvements. The result is an incremental cost of capacity of $5,115 per connection or
SSU.
Table 1. Incremental Cost Calculation
Faclutles
Cost
Growth
Allocation
Growth
Related
Cost
Growth
Related
Capacity
[gall
Growth
Related
Connections
(SSus)
Cost Per
Connection
1991 COP debt sarme
$28.065,964
740%
$20.768,813
2700.000
13.916
11,492
2003 COP debt service
$7,666,354
260%
11,989,711
2,200,000
11,340
1175
2004 COP debt serma
537.376.493
24 2%
19 046,845
21200,000
11,340
1798
2006 COP debt service
$50,261973
584%
529,364137
2,200,000
11,340
52,588
Subtotal
$123 37Q794
161,189,508
15.055
Sanitary sewerWlasler Plan
$115,970
100%
$115.570
2200,000
11,340
$10
Public Works Admin Building
5373.420
100%
5373.420
2,200.000
11,340
S33
Public WOrkS • Storage Facilities
1187.870
100%
1187,870
2,200,000
11,340
$17
TOlal
1124,048,044
961.846.768
Table 2 shows the derivation of the unit cost of capacity for each loading category (i.e.,
flow, BOD and SS). The total cost allocated to growth ($61,846,768) is allocated to each
3a The 2003 and 2004 bonds pay for facilities that do not add capacity beyond the current 6.8 mgd
capacity. These facilities provide tertiary filtration and disinfection. With the 2006 bonds, the capacity
will be expanded to 8.5 rngd.
Richard C. Prima
August 15,2005
Page 4
loading category based on the functions associated with each improvement'. Each of
these three cost categories is then divided by the respective units of capacity to derive
the unit cost for each loading category.
Table 2. Functionalczed
Al10ca1
1991 COP debt sarvics
5211.76a,er3
2003 COP debtarnica
$1,965,7! 1
20COP debt service
04
59,046,645
2006 COP debt aenke
529.364.!37
Subtotal
$61,169,506
Sarowy Sewer Master Plan
St 15,970
Pudk: Works Admin. t5u O -v
5373,420
bk Works - Fac=ex
PuStorage
5'67,670
Total
361.646.766
Units fes each loading COI69M
.
Unit cost per Wading c9tuWY
S19. 409
10.4%
9206.096
44,6%
S491,6ot
.44,6% S
691,806
572%
551171,640
21,4%
$1,937.603
21d%
1,937,603
50A%
517,217179_
54.1%
9 3 S
7.1%
06700.7-
50.6%
530,963.041
312%
S19. 409
182%
511,117,057
50,6%
S56.702
31.2%
536,134
142%
521.133
$0.5%
$189,019
31.2%
5116,352
16,2%
$66.049
50.6%
595.097
31.2% 556.537
16.2%
50,6%
$31,305.659
.3112%
$19,270.432
162%
$11270,476
Unna Of ga act and Cos of
Capacfty Per load. C to
Gauday:
2,200.000
mgA:
265
Osk
306
MwdaY•
2.200
1.000 away:
5.229
1.000 fir•
5.644
1,4glyr:
003.0
1A0061rr
1,506.5
1.0001►+.
2,0676
Per mov:
536,966
Per 1.000 61 .
$10,057
Per 1,000 W-
55.400
To validate the methodology, the unit cost ror each wauuty, rraiCgvey a> = ayyu=u W "L�
loadings specific to a residential connection in Table 3. The resulting capacity fee
($5,118 per residential connection) is virtually identical to the previous capacity fee
($5,115 per SSU).
Table 3. Residential CapacityFee
Flaw C m anent 80G om anartt S Cam anent
rRedings Gatlday. 194 n 4, 243 ng'1; 285
MW. 0.0708 1,000 W. O.i435 1,0001ttfy O,t683
ng category S 2,761 5 1.449S 909
ow oorr Pmanl $ 2.760.61
00 Gonvonent 6 1 A48.97
S Component 5 906.83
S 5.118.41
Fee per SSU $ 5,114.61
Rounding error $ 3.80
Table 4 summarizes the revised capacity fees and compares them with the existing
capacity fees.
4 See Attachment 1
Richard C. Prima
August 15,2005
Page 5
Table 4, Capacity Fee Summary and Comparison
The revised capacity fees are greater than the existing capacity fees because of the
improvements financed by the 2003,2004, and 2006 bonds, which total more that twice
the improvements included in the existing capacity fees. In addition, cost per million
gallons of flow has increased proportionately more than the charges per 2,004 pounds
of BOD and SS because of the flow-related function provided by the improvements.
Despite tHs increase, the revised capacity fees are less than the unit cost cf capacity for
a new planta
CONCLUSION
We recommend that the City adopt the revised capacity fees described in this report. In
addition, we recommend that the City periodically update the capacity fees to reflect
revised cost estimates and actual costs incurred. Betweenperiodic updates, we
s West Yost & Associates estimated the cost of anew 8.5 mgd plant to be about $125 mMon, which with
interest costs of financing could cost about$24S million, yielding a unitcost of$5,610 per SSU.
3
Capacity Fees
Revised
Existing
Residential connections
Bedrooms SSV5
1 0.75
S
3.837
$
1.575
2 1.00
S
5.115
S
2,099
3 1.25
$
6,400
S
2.627
4 1.50
S
7,678
S
3,151
5 1.75
$
8.955
$
3.675
6 2.00
S
10333
S
4.200
7 225
S
11.515
5
4,126
CommerelallModerate Strength ConeCtions
Per SSU
$
5.115
S
2.099
High-Strenath Connections
PerMG peryear
5
38"6
$
11,193
Per 1,000 lbs BOD per year
$
10.097
$
4.611
Per i,= Ips SS per year
$
5,400
$
2.076
The revised capacity fees are greater than the existing capacity fees because of the
improvements financed by the 2003,2004, and 2006 bonds, which total more that twice
the improvements included in the existing capacity fees. In addition, cost per million
gallons of flow has increased proportionately more than the charges per 2,004 pounds
of BOD and SS because of the flow-related function provided by the improvements.
Despite tHs increase, the revised capacity fees are less than the unit cost cf capacity for
a new planta
CONCLUSION
We recommend that the City adopt the revised capacity fees described in this report. In
addition, we recommend that the City periodically update the capacity fees to reflect
revised cost estimates and actual costs incurred. Betweenperiodic updates, we
s West Yost & Associates estimated the cost of anew 8.5 mgd plant to be about $125 mMon, which with
interest costs of financing could cost about$24S million, yielding a unitcost of$5,610 per SSU.
3
Richard C. Prima
August 15,2005
Page 6
recommend that the Q ry annually escalate the capacity fees using the ENR construction
cost index so that the value of the capacity fees does not declinebecause of inflation.
Rate payers are entitled to receive reimbursement based on the current cost cf capacity
and should not see their investment eroded by inflation.
Very truly yours,
HILTON FARNKOPF & HOBSON, LLC
Uhn W. Farnkop , P.E. 10
Senior Vice President
Attachment 1 as noted.
f t -
0% 50% 50% S - S 1,665,000 $ 1.655,000 S 1.370,000
5ngMeenng ano nw.uw,..-.-.. o --
10%
Consitudion Conti000
C051
ssc
5312000
1230.000
552000
- _ S 312,
100% 0% 0% S 312.000 S S
Es4maled Construabn
C)vl! 1m tovemanri Levet Cortrtruttlon
Eatimited
Users Served
Conswaion am
E New
Ftatn
Can faLtDf indieCt t'oflt 121E
530 000
$50
- - -
FJiab xiti5n irld
6 Laa ft (5.000 CY ® S101CY)
525.000
Excaysdon
KI,Ang (5,000 CY0 S31M CY)
S7,50D
Engineered Fig (5,000 Cy 0 SI -5=y)
$20,000
Paving
$so
p
$190000
SubloWf (rdund4d)
$40000
Exurnal Coni' cn 201A
5230
SubtoW
Eny-neaAng and Administration a 25%
EogLoerrtlon Can
S2 000
5302 000
220.000 582.000
33% 33% 33% S 100 567 S 100 067 S 100 667 302
Eitimalst td Constntotion Cost
S y,p6/;D00 S 2,950,000 S 1.0]4,000
S 412.661 S 1.765.667 S [,765.667 $ 3,!84,000
S3 464,000 -
10.4% � 44.1'.i 44.1% To SaMs 11 -
Estlmated To+x12001 Constntctlan Cost
Cost Sendnq song uusserf
S2.95%000
Esamated 2.003 Conlin n0[lan
EsfteW 2003 ConflnlCtloO Coal ServlrW H
Cost Ser*V E>dabnD users
31,03<,000
- T4A% To Tablt 11
-
-
SG gs*nWd 2003 Canstndpn
Cost 5eMtq New Users
2SA% TOT" 12
3r Estinated 2003 ConsYuctlbn
`-;7&;d - -
Contractor
eosas�®aP�9
pWOMon f ,istt^9s ■pP++Ienancer
P.mhase serew Panels
Aeration *N 8 P,,W kmullawn
S.ma wal and maen --L
32t,014.000 0
Estimated Total 4004 Conrt"Moon Cost [Jars S10,534.0W S0
Estimatedr 2004 C-51 110M Cost Serving Ed'Mg 55,200,000
Users
Estinated 2004 Canstrect Cost Sww" �a�8� Users
24.2%To 7atda It
% EsOnlatad 4004 Conrin+edan Coat 02t Naso Users 31.2% Te Tule 11 -
% Esti mated 2004 ConsWuc8on Cost SerMg
0% $0% 50% so ST02.DW 5702,000
3S%. 33% 33% S,3.074.000 .$1,270,000 53.470.o00
100% 56.500000
S 12,470.600 S4.672.Oo0 54 672,000
5T.2Y. 27.1:5 21.4
Phase II[ 20091m rovsments
50% S
925,000 S
0sm
S
460
Sl .000
'0..nt Streenin9
s
11110.060
570.000
H W* -- -ds
�
it"
Modi1T Domestic rumps
$360.OW
5360,0110
S
kldustlistPlMO" ttnprmmsnfs
100%
64;440.010
2 New MOW Ets4fne
514/0.
51.010.000
s 3t�,000
New DlMOWS in E1dsft Aeration Basins
12,700060
S
$2,700400
New SOONW&ty CLvMr
$1,3601000
$1,090.000
52T0000
RASMAS MW
SS,7N
50.000 S
61 y"We
New AAWObic D1940"
5090,000
SM.000
5240.000
Sludgete4o ea Improvements
5,250,000
1140.000
510.000
Slarsge PondAMNon
Contra! STSIem 11 MIM*aneevs pperationat Upgraees
50%
WA
SULIV
ApraNanAWIdi" ImProvementa12.4mjm
$150.000
$110,00
Sakm
160 Ac Welends
MMAN
I Mam
S310",
MAW
S 655.000
7
S10, .000tin
50-A
S
465,000 3
465,000
�twuser
n_m,
1
AR
50%
odes 20%
1
9 60 000
i3 152000
Esfmafed TaW 2006 CoaskueYwr Cost 522,512.000
Est200S41 Construt0an Cost Swwisg Exb*9 U— 50.3KOW
ESL 20056 Ccns"cfon Coal S4aMa4 NOW Uses 513,152 A%
% lcsl 200541 con*ucdm CM S,% t4 E>del. User 616%
V. Est.2005-5 Cor1$vL%tdm Cast Ser ho New Usen UA%
Alheaf'ron to Functional Categorises
50•/
50% S
925,000 S
S 325,000
S 650,000
100%
s
260400 S
s
S 260,000
100%
$
240,000 3
S
i 21p,1p0
100%
S
360,000 s
S
s 3t�,000
50%
91%
S
2,210,1100 i
2,220400
S
$ 4.44Q,600
501.4
50%
S
50.000 S
540,060
S -
S 1,8"Aw
50%
50%
$
1,350400 S
1,350,000
$
S 2,700,000
50%
WA
S
660,000 5
860,000
S
S 1.360,000
50%
50% S
5
MAW
S 655.000
S 1.7ISAW
50%
50-A
S
465,000 3
465,000
S
S 430,600
50%
50%
S
125,000 3
MAN
S
S 250,000
33%
33%
31% S
153,333 3
153,333
S 153,333
S 440jM
100%
S
150,000 S
S
S 150,000
100%
0%
0% S
2AWA10 4
S
S 3.006000
f00%
0%
S
t m 600.1
S
s 1
S
11,036,333 3
6,366,333
S 1.333,333
S 16,7 im-
54%
34-A
7%
100%
s_
1 2W.76T $
_ Lft441
5s
5 1,74�5
2.1_f2�600
s IY326 {
If34 T4
1469.126
S 20,452,000'
00%
347f,
INTO
TOM* 11
13.12.020 Definitions.
5. 'Capacity' or'Impact fee" means a charge as described in this chapter, levied on
construction or on new. expanded or ongoing activity. which uses POTW capacity
otner wastewater fac'I ties associated witn growth. The fee is norma,ly paid at the time of
issuance of a ou .lding permit.
45. 'Sewage service unit or SSU" is defined as each incrementof flow equal to the flow
from an average two-bedroom residence ( one -hundred and ninety-
four -gallons perday) and having a strength less than three hundred milligrams per liter
BOD and SS.
13.12.180 Domestic system service charges.
A. Basis. Charges for use of the domestic system shall be determined by the volume,
biochemical oxygen demand (BOD) and suspended solids (SS) of wastes discharged. in
addition, charq..es for preparation and maintainina the Sewer Master Plan, expansion of the
Pub c Works Aam n stration Bu laing aria expansion of the Public Works Storaae Facilities
are a locatea oased upon volume. BOD and SS
13.12.190 Domestic system capacity or impact fees.
The capacity fee shall cover the capital cost associated with the POTW capacity wbieh-will
best' and the planning. financing, acquisition and development of
other services and facilities directly related to the utilization of capacity by the discharger.
Any actual costs incurred by the city in making the physical connection (tap) shall be
separate and in addition to the capacity fee described in this section.
D. The capacitv fee shall be paid at the time a buildina permit is issued and cannot be
prepaid.
in the C tv of _od Wastewater Capacity Fees Analysis prepared for the City by Hilton.
Famkopf 8 Hobson. LLC. dated August 15,2005, and the Development Imoat lee
Update Study_ prepared for the City by Harris & Associates. dated October 2001, copies of
which are on fife with the City Clerk: The calculation of the fee is„presented in Title 13,
Chapter 13.12 of the Lodi Municipal Code.
G. New developmentwill generate new demand for facilities which must be
accommodated by construction or new or expanded facilities. The amount of demand
generated and, therefore, the benefit gained, vanes according to kind of use. Therefore, a
"residential acre equivalent” (RAE)factorwas developed to convert the service demand for
general plan based land use categories into a ratio of the particular use's rate to the rate
associated with a low-density, single-family dwelling gross acre. The council finds that the
fee per unit of development is directly proportionalto the RAE associated with each
particular use.
.H. The city has previously approved various development projects which have made
significantfinancial expenditures towards completion, including the payment of the then
current development impact mitigationfees; but have not obtained a building permit. The
city council finds and declares that such projects should be allowed to proceedwithout the
imposition of new development impact mitigationfees imposed underthis chapter. (Ord.
1547 § 1, 1992; 1526 § 1, 1991; Ord. 1518 § 1 (part), 1991)
15.64.030 Development impactfunds.
A. The city finance director shall create in the city treasury the following special interest-
bearing trust funds intowhich all amounts collected underthis chapter shall be deposited:
1. Water facilities;
2. Sewer facilities:
b. Kettle man Lane lift statiop
e.
G. lda ffley LaRe lift station
d Gl,off Avenue 44 stafinn
3. Storm drainage facilities;
4. Street improvements;
5. Police facilities;
6. Fire facilities;
7. Parks and recreation facilities;
8. General city facilities and program administration,
15.64.060 Calculation of fees.
C. Sewer fees shall be calculated and collected per LMC 13.12.
15.64.070 Residential acre equivalent factor.
B. The residential acre equivalent (RAE) factors are as set out in the following table.
(Ord. 1547§ 3,1992;Ord. 1518§ 1 (part), 1991)
Storm
General
Land Use
Water
SeweV
Drainage
Streets
Police
Fire
Parks &
Facilities
Categories
RAE
RAW
RAE
RAE
RAE
RAE Recreation
RAE
RAE
RESIDENTIAL
Low Density
1.00
4-1-30
1.00
1.00
1.00
1.00
1.00
1.00
Medium
1.96
4A6
1.00
1.96
1.77
1.96
1.43
1.43
Density
High Density
3.49
3-49
1.00
3.05
4.72
4.32
2.84
2.80
East Side
Residential
1.00
4.88
1.00
1.00
1.09
1.10
1.10
1.10
PLANNED
RESIDENTIAL
Low Density
1.00
4-W
1.00
1.00
1.00
1.00
1.00
1.00
Medium
1.96
a -:.N
1.00
1.96
1.77
1.96
1.43
1.43
Density
High Density
3.49
3:4.8
1.00
3.05
4.72
4.32
2.80
2.80
COMMERCIAL
Retail
Commercial
0.64
8:$4
1.33
2.08
4.12
2.69
0.32
0.89
Office
Commercial
0.64
8.94
1.33
3.27
3.72
2.46
0.54
1.53
INDUSTRIAL
Light Industrial
0.26
8:42
1.33
2.00
0.30
0.64
0.23
0.64
Heavy
0.26
6A-2
1.33
1.27
0.19
0.61
0.33
0.93
Industrial
(Ord. 1547§ 3,1992;Ord. 1518§ 1 (part), 1991)