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Home My WebLink AboutAgenda Report - July 5, 2006 I-01 PH/ERAGENDA ITEM 14 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Public hearing to consider adopting a resolution establishing low-income discounts for water and sewer services and adopting a resolution to place the measure on the baflot for the November 7, 2006, General Municipal Election MEETING DATE: July 5, 2006 PREPARED BY: City Attorney RECOMMENDED ACTION: That the City Council hold public hearing to consider adopting a Resolution establishing low-income discounts for water and sewer services, and further adopting a Resolution to place the measure on the ballot for the November 7, 2006 General Municipal Election. BACKGROUND INFORMATION: A question has arisen about whether the City of Lodi's low income discount program (known as SHARE - Ordinance 1750 introduced August 4, 2004), Senior Fixed Income Discount Program (also Ordinance 1750), the establishment of low-income water, sewer and refuse services (Resolution 2004- 158 adopted August 4, 2004, and the Lodi Customer Assistance & Relief Energy (CARE) package program (Resolution 2004-159 adopted August 4, 2004), which is designed to assist low-income families with their city utility bill, can be funded by the rate structure under proposition 218. This question only applies to the water and wastewater programs because the electric utility is specifically exempted from Proposition 218, and the refuse utility is privately owned and exempt from Proposition 218. Proposition 218 provides that: "The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel." However, I do not believe this language prevents low-income discounts from being funded through the rate structure. First, low-income discounts are ubiquitous in the utility industry: Publicly regulated but privately owned utilities such as electric, gas and phone provide them across the country. Moreover, they provide a bad debt management tool that allows the collection of a portion of a bill that may otherwise never be collected in exchange for a reduced rate, a direct benefit to ratepayers at large. These programs also reduce the cost of bill collection and demands on staff time for collection issues. Unfortunately, to date, no court has squarely addressed the issue and I must admit that some City Attorneys do not share my confidence in the above analysis. Accordingly, Council directed staff to prepare the discount programs for citizen approval. Since the programs, if subject to Proposition 218, would be special taxes, they require a 213 majority vote. APPROVED: Blair Ki6g, City Manager City/CouncomlOrd ina nce-!Hearing-Uti ktyDiscounts.doc The funding budgeted in FY 2006/2007 for the programs is as follows: The discount percentages will be set as follows: SHARE Sr./Fixed Income Water 20% 10% Wastewater 20% 10% Staff recommends that Council set a cap of 2% of revenue on each discount program and that staff monitor the discount programs annually to ensure the limit is not exceeded, with any overages in any one year beteg recovered from the following years 2% cap. At present revenue levels, this would equal $164,630 in Wastewater and $164,734 in Water. The ongoing verification of eligibility will be handled by the Finance Department, generally on an annual basis, depending on the circumstances under which a customer qualifies. FUNDING: Administration costs would be borne by Water and Wastewater funds and revenue loss would occur in each of the revenue funds. rSl—tephe Schwabauer City nay L DSSlpn SHARE/Sr./Fixed Income % of Rate Revenue Water $ 128,300 1.6% Wastewater $ 134,500 1.7% The discount percentages will be set as follows: SHARE Sr./Fixed Income Water 20% 10% Wastewater 20% 10% Staff recommends that Council set a cap of 2% of revenue on each discount program and that staff monitor the discount programs annually to ensure the limit is not exceeded, with any overages in any one year beteg recovered from the following years 2% cap. At present revenue levels, this would equal $164,630 in Wastewater and $164,734 in Water. The ongoing verification of eligibility will be handled by the Finance Department, generally on an annual basis, depending on the circumstances under which a customer qualifies. FUNDING: Administration costs would be borne by Water and Wastewater funds and revenue loss would occur in each of the revenue funds. rSl—tephe Schwabauer City nay L DSSlpn RESOLUTION NO. 2006-130 A RESOLUTION OF THE LODI CITY COUNCIL ESTABLISHING LOW-INCOME DISCOUNTS FOR WATER AND SEWER SERVICES WHEREAS, with the implementation of new water, sewer, and refuse rates and charges &doptod April 27, 2004, the Lodi City Council adopted Ordinance No. 1750 amending Lodi Municipal Code Chapter 13,04, §13.04.130, "Low Income Adjustments," at its September 15, 2004, City Council meeting; and WHEREAS, the City Council now desires to adopt a resolution establishing Water and Sewer Services discounts for eligible low-income residents, and further desires to place the Measure on the November 2006 ballot for citizen approval. NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the Lodi City Council does hereby approve and establish low-income discounts for water and sewer services as shown below, which shall become effective the first billing period following the effective date of this Resolution: For ResidentiaLcustomers 4o gualifyor the Electric SHAREPr2gramdiscount: Water 20% Discount on the Residential Flat Rate Wastewater 20% Discount on the Residential Flat Rate for Disposal to the Domestic System OR, For Besidential Customers LAM gualftr the Electticnio /Fixed -Income isc unt: Water 10% Discount on the Residential Flat Rate Wastewater 10% Discount on the Residential Flat Rate for Disposal to the Domestic System BE IT FURTHER RESOLVED that the water and wastewater discounts shall be funded by the ratepayers, collected with utility bills; and BE IT FURTHER RESOLVED that the programs will be limited to two percent (2%).of the revenue of each utility. At current revenue levels, this equals $164,234.00 in the water utility and $164,630.00 per year in wastewater; and BE IT FURTHER RESOLVED that the City Council does hereby direct staff to institute a verification program whereby every three years, 10% of one third (1/3) of the applicants' eliglibility is re -confirmed; and BE IT FURTHER RESOLVED that this Measure shall be placed on the November 7, 2006, Ballot for citizen approval. Dated: July 5, 2006 I hereby certify that Resolution No. 2006-130 was passed and adopted by the City Council of the City of Lodi at its regular meeting held July 5, 2006, by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hansen, and Mayor Hitchcock NOES: COUNCIL MEMBERS — Johnson and Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None NIFER PERRIN 1 ity Clerk 2006-130 RESOLUTION NO. 2006-131 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALIFORNIA, ORDERING THAT A MEASURE BE SUBMITTED TO THE VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE CONSOLID&NED WITH THE STATEWIDE GENERAL ELECTiON ON NOVEMBER 7, 2006, RELATING TO LOW-INCOME DISCOUNTS FOR WATER AND SEWER SERVICES --------------------___� WHEREAS, a General Municipal Eiection on Tuesday, November 7, 2006, has been called by Resolution No. 2006-96, adopted on May 17, 2006; and WHEREAS, the City Council requested the Board of Supervisors of the County of San Joaquin to render specified services to the City relating to the conduct of a General Municipal Ele(*on to be held on Tuesday, November 7, 2006, by Resolution No. 2005-97, adopted on May 17, 2006; and WHEREAS, the City Council also desires to submit to the voters of the City of Lodi at the General Municipal Election to be consolidated with the Statewide General Election on November 7, 2006, a question relating to low-income discounts for water and sewer services. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: gECTION 1. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question: Shad the Resolution establishing low-income discounts for water and sewer Yes ser*es be passed? 0 SECIION 2. That the proposed complete text of the measure to be submitted to the voters is attached as Exhibit A. SECTION 31 That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 4. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of San Joaquin. SEgTIOU. That the City shall reimburse the County for services performed and upon presentation to the City of a properly approved bill. Resolution Ab. 2006-131 July 5, 2006 Page Two SECTION 6. That the City Attorney prepare a ballot summary for inclusion in election materials not to exceed 510 words. SECTION 7. That the City Clerk shall certify to the passage and adoption:'of tNs resolution and enter it into the book of original resolutions. Dated: July 5, 2006 I hereby certify that Resolution No. 2006-131 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 5, 2006, by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hansen, and Mayor Hitchcock NOES: COUNCIL MEMBERS — Johnson and Mounce IL��•Z•m�Idli�i��1:I�I.�.�R-7T ABSTAIN: COUNCIL MEMBERS— None 1ti... NIFERVP RRIN terim City Clerk 2006-131 RESOLUTION NO. 2006-130 A RESOLUTION OF THE LODI CITY COUNCIL 1EXHIBIT ESTABLISHING LOW-INCOME DISCOUNTS FOR WATER AND SEWER SERVICES ---------_==¢=----------------------_—__ WHEREAS, with the implementation of new water, sewer, and refuse rates and charges adopted Aprii:27, 2004, the Lodi City Council adopted Ordinance No. 1750 amending Lodi Municipal Code Chapter 13.04, §13.04,130. "Low Income Adjustments," at its September 15, 2004, City Council meeting; and WHEREAS, the City Council now desires to adopt a resolution establishing Water and Sewer Ser*es discounts for eligible low-income residents, and further desires to place the Measure on the Novornber 2066 ballot for cilken approval. NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the Lodi City Council does hereby approve and establish low-income discounts for water and sewer services as shown below, which shall become effective the first billing period following the effective date of this Resolution: For fesidantW Customers loo aualifv for the Electric SHARE Program discount: Wa* 20% dilscount on the Residential Flat Rate Wastewater 20% Discount on the Residential Flat Rate for Disposal to the Domestic System KI For Absiden1W Customers 4 gualify for the Electric ni - I) a discount: Wat* 10% 131scount on the Residential Flat Rate Wasbwater 10% Discount on the Residential Flat Rate for Disposal to the Domestic System BE IT FURTHER RESOLVED that the water and wastewater discounts shall be funded by the rateMyers, collected with utibty bills; and BE IT FURTHER RESOLVED that the programs will be limited to two percent (2%) of the revenue of each utility. At current revenue levels, this equals $164,234.00 in the water utility and $164,630.00 per year In wastewater; and BE IT FURTHER fRESOLVED that the City Council does hereby direct staff to institute a verifiaation program whereby every three years, 10% of one third (113) of the applicants' eligibility is re -affirmed; and BE IT FURTHER RESOLVED that this Measure shall be placed on the November 7, 2006, Ballot for c*en approval. Dateol: July 5, 2006 I hereby certify that Resolution No. 2006-130 was passed and adopted by the City Council of the City of Lodi at its regular meeting held July 5, 2006, by the following vote: AYES: COUNCIL MEMBERS - Beckman, Hansen, and Mayor Hitchcock NOES: COUNCIL MEMBERS - Johnson and Mounce ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None \ n NIFER PERRIN 4ky Clerk SUBJECT: PUBLISH DATE: Please immediately conffim receipt of this fax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS NOTICE OF PUBLIC HEARING FOR JULY 5, 2006, FOR THE ADOPTION OF ORDINANCE ESTABLISHING LOW INCOME DISCOUNTS FOR WASTER AND WASTEWATER RATEPAYERS SATURDAY, JUNE 24, 2006 & JULY 1, 2006 TEAR SHEETS WANTED: Three (3) please SEND AFFIDAVIT AND BILL TO: JENNIFER M. PERRIN, INTERIM CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1 91 0 DATED: THURSDAY, JUNE 22, 2006 ORDERED BY: JENNIFER M. PERRIN, CMC INT RIM CITY CLERK DANA R. CHAPMAN ADMINISTRATIVE CLERK LNS formsladvin s. doc at.,__[time) on, 31pt of all'Waw at 1. 1 JENNIFER M. PERRIN INTERIM CITY CLERK JACQUELINE L. TAYLOR, CMC DEPUTY CITY CLERK r.. DECLAMATION OF POSTING PUBLIC HEARWG FOR JULY 5, 2006, FOR THE ADOPTION OF ORDINANCE ESTABLISHING LOW INCOME DISCOUNTS FOR WATER AND WASTEWATER RATEPAYERS On Friday, June 23, 2006, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing for July 5, 2006, for the Adoption of Ordinance Establishing Low Income Discounts for Water and Wastewater Ratepayers. 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 June 23, 2006, at Lodi, California. JENNIFER M. PERRIN, CMC INTERIM CITY CLERK k & i i DANA R. CHAPMAN ADMINISTRATIVE CLERK N:1Administration\CLERK\Fornn1DECPOST.DOC ORDERED BY: JENNIFER M. PERRIIN INTERIM CITY CLERK JACQUELINE L. TAYLOR, CMC DEPUTY CITY CLERK CITY OF LODI Carnegie Forum . 345 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: July 5, 2006 Time: 7:00 p.m. For information regarding this notice please contact: Jennifer M. Perrin Interim City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY QlVEN that on Wednesday, July 5, 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 resolution establishing low-income discounts for water and wastewater ratepayers (see Exhibit A attached) Information regarding this item may be obtained in the City Attorney's Office, 221 West Pine Street, Lodi, (209) 333-6701. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 W, Pine Street, 2^d Floor, Lodi, 95240 at any time prior to 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: nnifer Merrin nterim City Clerk Dated: June 21, 2006 Approved as to form: D. Stephen Schwabauer City Attorney CLERMPUBHEMMOTICEWH NOTICE CAdoc M2M6 RESOLUTION NO. 2006- EXHIBIT A A RESOLUTION OF THE LODI CITY COUNCIL ESTABLISHING LOW-INCOME DISCOUNTS FOR WATER AND SEWER SERVICES WHEREAS, with the implementation of new water, sewer, and refuse rates and charges adopted April 27, 2004, the Lodi City Council adopted Ordinance No. 1750 amending Lodi Municipal Code Chapter 13.04, §13.04.130, "Low Income Adjustments," at its September 15, 2004, City Council meeting; and WHEREAS, the City Council now desires to adopt a resolution establishing Water and Sewer Services discounts for eligible low-income residents, and further desires to place the Resolution on the November 2006 ballot for citizen approval. NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the Lodi City Council does hereby approve and establish low-income discounts for water and sewer services as shown below, which shall become effective the first bitting period following the effective date of this Resolution: For Residential Customers who qualifv for the Electric SHARE__Program discount: Water 20% Discount on the Residential Flat Rate Wastewater 20% Discount on the Residential Flat Rate for Disposal to the Domestic System , OR, For ,flesidential Customers Who qualify for the Electric Senior/Fixed-Income_discount: Water 10% Discount on the Residential Flat Rate Wastewater 10% Discount on the Residential Flat Rate for Disposal to the Domestic System BE IT FURTHER RESOLVED that the water and wastewater discounts shall be funded by the ratepayers, collected with utility bills; and BE IT FURTHER RESOLVED that the programs will be limited to two percent (2%) of the revenue of each utility. At current revenue levels this equals $164,630 per year in wastewater and $164,234 in the water utility; and BE IT FURTHER RESOLVED that the City Council does hereby direct staff to institute a verification program whereby every three years 10% of 113 of the applicants' eligibility is re -confirmed; and BE IT FURTHER RESOLVED that this Resolution shall be placed on the November 7, 2006 Ballot for citizen approval. Dated: July 5, 2006 I hereby certify that Resolution No. 2006- was passed and adopted by the City Council of the City of Lodi at its regular meeting held July 5, 2006, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS -- ABSENT: COUNCIL MEMBERS -- ABSTAIN: COUNCIL MEMBERS — JENNIFER M. PERRIN City Clerk r1O. CITY COUNCIL. CITY O F L O D I SUSAN HITCHCOCK, Mayor Gray A M BO$ ,JOHNSON, Mayor Pro Tempere JOHN BECKMAN LARRY D. HANOIEN tSea JOANNE MOUIE CITY HALL, 221 WEST PINE STREET I P.O. BOX 3006 LODI. CALIFORNIA 95241-1810 (20S) 333-6702 / FAX (209) 333-6807 / www.€odi_gov July 6, 2006 Daborlah French nIs#rR ar Of. Voters P. i S't 0 Sockton, CA 96201 BLAIR KING, City Manager JENNIFER M, PERRIN, Interim City Clerk 0. STEPHEIN.SCHWAIAVER, City Attorney . Erclosed please fired a certified copy of the following resolution pertaining to the November 7, 2006, Coneraf Municipal Election, which was adopted by the Lodi City Council at is July 5, 206, regular meeting: • Resolution giving mAice of the holding of a general municipal election on Tuesday, November 7, 20d6, for the submission of a proposed ordinance (relating to low-inoome discoulitts for water and sewer services). Should you have any *estions regarding this matter, please feel free to give mea call. Sincerely, nlfer . Perrin Interim City Clerk AW Enclosures cc: Son Joaquin Cognty Boand of Supervisors (+ encl.) *ctiwh oiu ounmecbo®Re*Wini&tive2.doc RESOLUTION NO. 2006-131 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI, CALIFORNIA, ORDERING THAT A MEASURE BE SUBMITTED TO THE VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION ON NOVEMBER 7, 2006, RELATING TO LOW-INCOME DISCOUNTS FOR WATER AND SEWER SERVICES WHEREAS, a General Municipal Election on Tuesday, November 7, 2006, has been called by Resolution No. 2006-96, adopted on May 17, 2006; and WHEREAS, the City Council requested the Board of Supervisors of the County of San Joaquin to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 7, 2006, by Resolution No. 2006-97, adopted on May 17, 2006; and WHEREAS, the City Council also desires to submit to the voters of the City of Lodi at the General Municipal Election to be consolidated with the Statewide General Election on November 7, 2006, a question relating to low-income discounts for water and sewer services. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question; Shall the Re -solution establishing low-income discounts for water and sewer Yes services be passed? No SECTION 2. That the proposed complete text of the measure to be submitted to the voters is attached as Exhibit A. SgCTION 3. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 4. That the City Clerk is hereby directed to file a certified copy of this resokition with the Board of Supervisors and the county election department of the County of San Joaquin. $gCTION 55. That the City shall reimburse the County for services performed and upon presentation to the City of a properly approved bill. Resokftn No. 2006-131 July 5, W06 Page Two SECTION 6. That the City Attorney prepare a ballot summary for inclusion in election materials not to exceed 500 words. SECTION 7. That the City Clerk shall certify to the passage and -adoption of this resolution and enter it into the book of original resolutions. Dated: July 5, 2006 I hereby certify that Resolution No. 2006-131 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 5, 2006, by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hansen, and Mayor Hitchcock NOES: COUNCIL MEMBERS — Johnson and Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None NIFER . PERRIN terim City Clerk 2006-131 RESOLUTION NO. 2006-130 EXHIBIT A A RESOLUTION OF THE LODI CITY COUNCIL ESTABLISHING LOW-INCOME DISCOUNTS FOR WATER AND SEWER SERVICES –_-___–_–___�— =_======_–____ WHEREAS, with the implementation of new water, sewer, and refuse rates and charges adopted April 27, 2004, the Lodi City Council adopted Ordinance No. 1750 amending Lodi Municipal Code Chapter 13.04, §13.04.130, "Low Income Adjustments," at its September 15, 2004, City Council meeting; and WHEREAS, the City Council now desires to adopt a resolution establishing Water and Sewer Services discounts for eligible low-income residents, and further desires to place the Measure on the November 2006 ballot for citizen approval. NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the Lodi City Council does hereby approve and establish low-income discounts for water and sewer services as shown below, which shall become effective the first billing period following the effective date of this Resolution: For R25idential Customers LAU Qualify for the Electric SHARE~ Program discount: Water 20% Discount on the Residential Flat Rate Wastewater 20% Discount on the Residential Flat Rate for Disposal to the Domestic System OR, For R2aidential Customers VAQ aualify for the Electric Soni r ixed-Income discount: Water 10% Discount on the Residential Flat Rate Wastewater 10% Discount on the Residential Flat Rate for Disposal to the Domestic System BE IT FURTHER RESOLVED that the water and wastewater discounts shall be funded by the ratepayers, collected with utility bills; and BE IT FURTHER RESOLVED that the programs will be limited to two percent (2%) of the revenue of each utility. At current revenue levels, this equals $164,234.00 in the water utility and $164,630.00 per year in wastewater; and BE IT FURTHER RESOLVED that the City Council does hereby direct staff to institute a verification program whereby every three years, 10% of one third (1/3) of the applicants' eligibility is re -confirmed; and BE IT FURTHER RESOLVED that this Measure shall be placed on the November 7, 2006, Ballot for citizen approval. Dated: July 5, 2006 I hereby certify that Resolution No. 2006-130 was passed and adopted by the City Council of the City of Lodi at its regular meelng held July 5, 2006, by the following vote: AYES: COUNCIL MEMBERS – Beckman, Hansen, and Mayor Hitchcock NOES: COUNCIL MEMBERS – Johnson and Mounce ABSENT: COUNCIL MEMBERS -- None ABSTAIN: COUNCIL MEMBERS – None 1 I1� NIFER . PERRIN ity Clerk 2006-130