HomeMy WebLinkAboutAgenda Report - July 15, 2009 I-01 PHAGENDA ITEM �.v
CITY OF LODI
COUNCIL COMMUNICATION
M
AGENDA TITLE: Public Hearing and Adopt Resolution Adjusting Wastewater Rates
MEETING DATE: July 15,2009
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Conduct a public hearing and adopt resolution adjusting wastewater
rates.
BACKGROUND INFORMATION: The Wastewater enterprise fund is operating at a deficit. The
existing rate structure no longer covers the cost of operating the
utility and servicing the debt incurred to expand and upgrade the
White Slough Water Pollution Control Facility (WSWPCF).
Therefore, it is recommended that wastewater rates be increased to provide a positive cash balance, that
revenue earmarks be eliminated to make revenue correspond with need, and that the Engineering News
Record (ENR) Index replace the Consumer Price Index (CPI) when determining annual cost adjustments.
Otherwise, all sub -funds within the enterprise will be exhausted by mid -2011.
Increased regulations and stricter enforcement have required that the City invest $60 million in
improvements to the White Slough Pollution Control Facility. The annual debt service for these plant
improvements amount to $4.1 million a year. In addition to plant improvements, regulations have
increased annual operational costs. These factors have produced the following results that have lead to
a deficit.
1) Annual operating costs have increased faster than the indexed rate of inflation.
2) The revenue needed to pay for the principle and interest of Wastewater Improvement bonds is not
available. Those bonds were used to expand/upgrade the WSWPCF and to cover a $7.5 million
emergency repair of the wastewater transmission main in 2008.
3) Annual revenue has been overestimated by approximately $1.5 million since 2004.
4) One of the accounts from which debt service is paid was not backfilled with any revenue from 1991
to 2004. It needs to be replenished.
To reverse the ongoing operational deficit, the following course of action is proposed:
I) Adjust base rates pursuantto the following schedule: 25 -percent increase effective July 16, 2009
for FY 2009/10; 20 -percent increase for FY 2010/11; 10 -percent increase for FY 2011/12; and
5 -percent increase for FY 2012/13.
2) Adjust rates for inflation using the ENR Index instead of the CPI beginning in FY 2013/14.
3) Budget and execute a $2 million infrastructure project biannually but eliminate the infrastructure
line item on utility bills.
4) Annually update the utility financial model to confirm the need and amount of future rate adjustments.
The proposed rates are listed in Exhibit A, and the adjusted rates apply to both residential and non-residential
customers.
In addition, it is proposed that the City Council at the public hearing:
1) Backfill the $3,955,688 in the Wastewater Capital Reserve Fund to account for the 13 years that
expenditures were made without being restored with revenue from any source.
APPROVED:
Blair King,nager
KAWP\UTILITY RATES\W WW\2009 W WW R2k1ncrease\CCPR WWRates.doc FV6 07/10/2009
Public Hearing to ConsiderAdopt Resolution Adjusting Wastewater Rates
July 15, 2009
Page 2
2) Acknowledge the future plant operations plan requires several new positions to deal with the
increasingly complex nature of operating a modern, 8.5 -million -gallon -per -day treatment plant.
These may include a Compliance Engineer, Plant Equipment Mechanic, Environmental
Compliance Inspector, and additional Plant Operatorsfor the City to comply with the requirements
of its State -issued discharge permit. Changes to the staffing at WSWPCF will be brought before
the Council for action at a future meeting.
This is not a recommendation the Public Works Department takes lightly. Therefore, the department held
an outreach campaign to help residents understand the regulatory environment and other issues that
result in the recommendation for a rate increase. Not only was additional information placed on the City's
website, the Public Works Department held a public workshop on June 16 so the community had the
opportunity to discuss this issue one-on-one with staff. Seven guests from the community attended the
workshop.
Lodi's wastewater system consists of 186.5 miles of wastewater mains, seven pump stations and the
White Slough Water Pollution Control Facility. Many wastewater plants constructed in the 1960s and
1970s, such as the White Slough facility, were built with federal funds through programs designed to
reduce water pollution. The State Legislature in 2000 forced the State Water Board to pass regulations
to prevent the discharge of pollutants into ground and surface water, but unlike previous decades, federal
funding has not been forthcoming to accomplish this goal.
Meanwhile, Lodi has faced increasingly strict standards in the past decade. Now, not only is wastewater
clarified (primary treatment) and aerated and further clarified (secondary treatment), it is filtered and
disinfected using ultraviolet light (tertiary treatment). In January 2005, Lodi's plant became the first city in
San Joaquin County to reach tertiary stage treatment. The City's most recent discharge permit, issued in
2007, imposed stricter requirements on the plant. Even then, that has not stopped a local environmental
group from trying to force the State to require Lodi to make even more costly upgrades.
Proposition 218 requires that the City provide a notice of the proposed rate schedule to all wastewater
utility customers and property owners 45 days prior to the public hearing. This was accomplished on
May 30, 2009, in addition to a notice of public hearing which was published in the Lodi News Sentinel on
May 16 and June 20 (certification of these notices is attached to the staff report). In order for the
increases to "not take effect" a majority of the property owners/utility customers are required to file
opposition to the increase. Property owners/utility customers mayfile a written and signed protest
against the proposed increases with the City Clerk at or before the close of the public hearing. At the
public hearing, Council shall hear all protest. The City Clerk shall tabulate the protest and will certify the
results to Council following the close of the public hearing. At this time, 123 valid protests have been
received. Approximately 35,000 notices were sent to property owners/utility customers within the City.
The need to raise wastewater rates is not unique to Lodi. Neither are the proposed rates. Some cities
charge less, others more. Staff will provide additional information to the public at the public hearing.
FISCAL IMPACT: Increased revenues to the wastewater utility which is required to keep up
with cost of service increases and mandated costs. Without a rate
increase, the General Fund will be required to support the Wastewater fund
in order to avoid crippling financial fines and penalties.
FUNDING AVAILABLE: Not applicable.
F. Wally ndelin
PublicWorks Director
FWS/pmf
Attachments
cc: Steve Mann, Information Services Manager
Charlie Swimley, Water Services Manager
K:\WP\UTILITY RATES\W WW\2009 W WW Rate lncrease\CCPR WWRates.doc 0711012009
City of Lodi Wastewater Utility
Proposed Wastewater Rates
Moderate Strength (annual per SSU)
Current Rates
Rates Effective
Rates Effective
Rates Effective
Rates Effective
High Strength User:
07/16/2009
07/16/2010
07/16/2011
07/16/2012
Flow (per MG, annual basis)
Monthly
Monthly
Monthly
Monthly
Monthly
Residential
Base Infr. Total
Total
Total
Total
Total
1 BR
$11.84 $4.81 $16.65
$20.81
$24.97
$27.47
$28.84
2 BR
15.78 6.41 22.19
27.74
33.29
36.62
38.45
3 BR
19.73 8.01 27.74
34.68
41.61
45.78
48.06
4 BR
23.67 9.62 33.29
41.61
49.94
54.93
57.68
5 BR
27.62 11.22 38.84
48.55
58.26
64.09
67.29
6 BR
31.56 12.82 44.38
55.48
66.58
73.24
76.90
7 BR
35.51 14.42 49.93
62.42
74.90
82.40
86.51
Moderate Strength (annual per SSU)
$266.28
$332.88
399.48
439.44
461.40
High Strength User:
Flow (per MG, annual basis)
2,247.10
2,808.88
3,370.66
3,707.73
3,893.12
BOD (per 1,000 Ibs.,annual basis)
370.83
463.54
556.25
611.88
642.47
SS (per 1,000 Ib., annual basis)
231.86
289.83
347.80
382.58
401.71
Grease Incepter & Septic Holding
196.35
245.44
294.53
323.98
340.18
Tank Waste within City Limits (per
1,000 gal.)
Septic (only) Holding Tank Waste
416.82
521.03
625.24
687.76
722.15
Outside City limits (per 1,000 gal.)
Disposal to Storm Drain System (per MG)
206.24
257.80
309.36
340.30
357.32
Disposal to Industrial System:
n/a rates adjusted
n/a rates adjusted
n/a rates adjusted
n/a rates adjusted
Flow (per MG, annual basis)
2,218.78
annually per
annually per
annually per
annually per
BOD (per 1,000 lbs., annual basis)
20.34
LMC § 13.12.210
LMC § 13.12.210
LMC § 13.12.210
LMC § 13.12.210
Winery Waste(per 1,000 al.
198.82
248.53
298.24
328.06
344.46
RESOLUTION NO. 2009-100
A RESOLUTION OF THE LODI CITY COUNCIL ADJUSTING
WASTEWATER DISPOSAL SERVICE RATES
WHEREAS, the Council of the City of Lodi finds as follows:
1. The City of Lodi provides wastewater disposal service to its citizens;
2. The City charges customers of this utility a charge to fund the on-going
operation and maintenance of the wastewater disposal service;
3. The City Public Works Director and staff have prepared a plan outlining
the cost of operating the wastewater disposal service;
4. The Wastewater Enterprise Fund is operating at a deficit and the existing
rate structure no longer covers the cost of operating the utility;
5. The City Public Works Director has recommended increases to the
current wastewater disposal rates;
6. The City Public Works Director also recommends that the revenue
earmarks be eliminated to make revenue correspond with need and that
the Engineering News Record (ENR) Index replace the Consumer Price
Index (CPI) when determining annual cost adjustments;
7. The Council directed that notice of a hearing thereon be given to the
property owners and wastewater disposal utility customers in the City,
with such noticeto include, among other matters, the information required
to be included pursuant to California law;
8. Pursuant to California Constitution, Article XIIIC and Government Code
53755, such notice has been mailed to those property owners and
account holders, at least 45 days before the hearing, as evidenced by a
Certificate of Mailing on file with the City Clerk;
9. The Council also directed that notice of a hearing thereon be given with
such notice to include the information required to be included pursuant to
Government Code Section 54354.5;
10. Such notice has been published once each week for two weeks, in
accordance with Government Code Section 54354.5, in the Lodi News -
Sentinel as evidenced by Proofs of Publication on file with the City Clerk;
11. On July 15, 2009, the City Council conducted said public hearing, at
which time the City Council heard all objections and protests to the
proposed increased rates;
12. Written protests against the proposed increased rates were not presented
by a majority of the property owners and wastewater disposal utility
customers; and
follows:
13. The proposed wastewater disposal service rates are not discriminatory or
excessive, are sufficient under Government Code Section 54515, comply
with the provisions or covenants of any outstanding revenue bonds of the
City payable from the revenues of the enterprise, comply with the
provisions of Title 5, Division 2, Chapter 6 of the Government Code, and
are in compliance with all other applicable law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Levy of Charges. Pursuant to Sections 13.08.010, 13.12.240, and
13.16.110 of the Lodi Municipal Code, the increased wastewater disposal service rates
as attached hereto as Exhibit A are hereby approved.
Section 3. Subsequent Adjustments. As provided by Government Code
Section 53756, the rates shown in Exhibit may be adjusted annuallyfor a period of five
years by resolution beginning July of 2010 through July of 2015, with Council approval
following a public hearing, in an amount not to exceed the percentage change in the
ENR Twenty Cities Annual Average Index or other index as approved by the City
Council by resolution. The adjustment shall not be made if it causes rates to exceed the
cost of service and Notice of the Adjustment shall be mailed to each account not less
than 30 days before the effective date of the adjustment.
Section 4. Effective Date. This resolution shall take effect from and after the
date of its passage.
Dated: July 15, 2009
-------------------------------------------------------------------
-------------------------------------------------------------------
I hereby certify that Resolution No. 2009-100 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 15, 2009, by the following
vote:
AYES: COUNCIL MEMBERS—Johnson, Katzakian, and Mayor Hansen
NOES: COUNCIL MEMBERS— Hitchcock and Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
RANDIJOHL
City Clerk
2009-100
Clty of Lodi Wastewater Utility
Proposed Wastewater Rates
Exhibit A
Current Rates
N@l@§ IRIPLAV@
Rates Effective
Rates Effective
Rates Effective
OTA
07/16/2010
07/16/2011
07/16/2012
Month)
Month)
""-�-1"6
Month)
Residential
Base Infr. Total
Total
Total
Total
$28.84
1 BR
$11.84 $4.81 $16.65@:��
$24.97��:
2 BR
15.78 6.41 22.19
0:74
33.29
36.62
38.45
3 BR
19.73 8.01 27.74
MAS
41.61
45.78
48.06
4 BR
23.67 9.62 33.29
MAI
49.94
54.93
57.68
5 BR
27.62 11.22 38.84
49:99
58.26
64.09
67.29
6 BR
31.56 12.82 44.38
NAA
66.58
73.24
76.90
7 BR
35.51 14.42 49.93:4
74.90
82.40
86.51
Moderate Strength (annual per SSU)
$266.28
$332.88
399.48
439.44
461.40
High Strength User:
Flow (per MG, annual basis)
2,247.10
2,808.88
3,370.66
3,707.73
3,893.12
BOD (per 1,000lbs„annual basis)
370.83
463.54
556.25
611.88
642.47
SS (per 1,000 Ib., annual basis)
231.86
289.83
347.80
382.58
401.71
Grease Incepter& Septic Holding
196.35
245.44
294.53
323.98
340.18
Tank Waste within City Limits (per
1,000 gal.)
Septic (only) Holding Tank Waste
416.82
521.03
625.24
687.76
722.15
Outside City limits (per 1,000 gal.)
Disposal to Storm Drain System (per MG)
206.24
257.80
309.36
340.30
357.32
Disposalto Industrial System:
n/a rates adjusted
n/a rates adjusted
n/a rates adjusted
n/a rates adjusted
Flow (per MG, annual basis)
2,218.78
annually per
annually per
annually per
annually per
BOD (per 1,000 lbs., annual basis)
20.34
LMC § 13.12.210
LMC § 13.12.210
LMC § 13.12.210
LMC § 13.12.210
Winery Waste(per 1,000 al.
198.82
248.53
298.24
328.06
344.46
Exhibit A
CITY CLERK'S CERTIFICATE
RE: WRITTEN PROTESTS
PROPOSED WASTEWATER RATE INCREASE
I, RANDI JOHL, City Clerk of the City of Lodi hereby certify that City Clerk
staff have personally received and assembled all written protests returned by
mail or delivered in person.
At the conclusion of the public hearing on July 15, 2009, 1 tabulated the
written protests and certify the result of that tabulation to be as follows:
TOTAL NUMBER OF PROPERTIES: 34,565
on which the rates are imposed as shown
on the last equalized assessment roll of
San Joaquin County and City utility billing
records pursuantto Proposition 218
requirements
TOTAL NUMBER OF WRITTEN PROTESTS RECEIVED: 254
to the proposed increaseto monthly
wastewater rates
I make this certification on July 16, 2009
If
RAN
CITY CLERK
N:1Administradon\CLERK\Election\Prop_2181Certification_Results.doc
The City of Lodi
Public Works
Water Services
Public Hearing
Wastewater Rate Adjustments
July 15, 2009
Background
➢ $60 million in improvements completed to comply with
the 2000 Discharge Permit requirements
➢ Upgrade costs for plant were not incorporated into past
rates
➢ $5.8 million one-time money from San Joaquin County
used to delay rate increases
➢ $13 million diverted from Infrastructure Replacement
➢ Wastewater Enterprise should be a stand alone utility
supported by rates not taxes
Background
Annual operating costs exceed revenues by $1.5
million/year
Annual debt service for the plant improvements amounts
to $4.1 million/year
Regulatory environment continually adds new
regulations & stricter enforcement
Delta discharges are highly scrutinized
No other next best available option
f
�� Actions Since April 15
➢Issued Public Notification Pursuant to
Proposition 218 on May 30
➢Conducted Public Workshop on June 16
➢Open House at White Slough on July 11
t
10
9
Cn
C 5
0
4
3
2
1
0
� Operating Costs Increasing Faster
than Indexina Factors
FY '03/'04 FY '04/'05 FY '05/'06 FY '06/'07 FY '07/'08
0 Wastewater Operating Expense Wastewater Operating Revenue
�� Regulatory Environment
Tertiary Treatment Required
Groundwater Protection
Surface Water Quality
Protection
Salinity
Odor and Nuisance Control
Third Party Litigation
f
Rate Adjustments
25% FY 08/09
20% FY 09/10
10% FY 10/11
5% FY 11/12
0% FY 12/13
Adjustments inclusive of 21% for inflation over 5 years
$5,000,000
$41000)000
$3,000,000
$2,000,000
$1,000,000
$0
20035 20045 2007 COP Debt Service
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Monthly Rate Effective July 16
3 Bedroom Home
Current 2009 2010 2011
Base $19.73 $34.68 $41.61 $45.77
Infrastruct. $8.01
n/a
n/a
n/a
Replace.
Total $27.74
$34.68
$41.61
$45.77
Increase
$6.94
$6.94
$4.16
Percent
25%
20%
10%
2012
n/a
$2.29
5%
Rate Comparisons
W,
+ Galt
0
*Turlock
Da\AsMerced
• ** Livermore
♦Lathrop Manteca
+ Lodi * Vacaville
Pleasanton . * Tracy
* Lodi (current)
♦ Ceres Fairfield ♦Modesto♦ ♦Stockton
♦ Ripon
♦ Escalon
t., uesuons
CERTIFICATE OF MAILING
NOTICE OF PROPOSED SEWER RATE INCREASE
I, Pamela Farris, Administrative Secretary of the Public Works Department
of the City of Lodi, under penalty of perjury, certify as follows:
That for and on behalf of the City Clerk of the City of Lodi, and on
May 28, 2009, 1 caused to be mailed a Notice of Proposed Sewer Rate Increase
to all sewer service customers of the City of Lodi and all persons owning real
property on which these rates and charges are imposed and as are shown on
the last equalized assessment roll of San Joaquin County (mailing list on file in
the office of the Public Works Department), a copy of which Notice is hereto
attached and marked "Exhibit A .
Executed on June 2,2009.
W7, .
PAMELA FARRIS
DEGMAIL.DOC oervzrraas
ips -sort Center
RECEIVED
JUN o 2 2009
CITY OF LODI
PUBLIC WORKS DEPARTMENT
June 1,2009
CERTIFICATE OF MAILING
I, Daniel A. Williams, of Pre -Sort Center of Stockton, Inc., hereby declare that on the
following date(s), we processed and mailed for the CITY OF LODI the following:
Date: May 28,2009
Item Description: Proposed Rate Increase - 218 Notices (Dept. of Public Works)
Number of Pieces: 37,439
Daniel A. Williams
General Manager
Preort Center
(0/. (/0 ?
3806 Coronado Avenue • Stockton, CA 952042314 . (209) 941-2467 . Fax (209) 941-0380
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N.cA - to
v�
o� �NOT I C E
a
<»ro�
Aletter. to LoaiFr�si�izts
nndroperiy aumers ham
ll/a!!y Sandeli�, Lodi` Public: `
Works director.
Dear fellow ratepayer,
The ( 41• of Lodi regularly
evaluates its wastewater ser-
vice needs, the cost of provithi)g
those services, and then deter-
mine.," if rates are sufficient to
continue providing the seri ice.
Chu goal is to provide quality
Service that protects public health
and the enviroiuntnt. How we
meet that goal is largely deter-
mined by State regulations, but
we are committed to efficiently
managing our system.
Lodi faces iiicteasingft strict
State regulations that determine
hocv we teat and dispose of
wastewater. The regulatory
changes have forced us to spend
millions ofratepayer dollars to
upgrade our 43 -year-old facility.
This is not simply a Lodi prob-
lem, but one facing all out
neighboring communities.
Unfortunately, as a result of
these changes, we are collecting
far less in rates than it takes to
operate our wastewater plant.
This annual shortfall of more
than $2 million requires us to
adjust rates greater than the nor-
mal inflation mdcx.
In this notice, you'll learn
snore about the proposed rate
increase, which will be phased in
or -el- four l cars beginning July
1(, 2009.
Fhese are not rate increases
ticc rake lightly, We understand
these are difficult economic
times for many of our residents
and businesses. %Vc wish the
State would give us other op-
tions;,hut please be assured we
arc coirunitted to providing the
best ser ice at the lowest possi-
ble cost.
Sincerely,
Wally Sandelin
Public Works Director
Exhibit A
of PrelDosed Rate Increase & Public Hearing Date
Summary of proposed rate increases
July 16'.,...Ju9y 1;, July,1,,- Ju1,y 11'
7tll]9 20 1 b 2.0)11 2E `12
Costs to operate forced higher
Lodi has spent millions of
dollars on its Sewage treat-
ment plant in recent years to
meet increasingly strict State
rules on holt the City treats and
disposes ofwastewater.
In late 2007, Lodi issued
snore than $30 million of bonds
to fund the most recent man-
dated plant upgrades and pay for
an emergency repair of a five-
railc stretch of the City's main
sewage transmission line. Those
costs are not in the current rates.
Even after the tates go into
effect, sewer service in l.ocli will
stall be less expensive than in
many neighboring communities.
Proposition
and hearing
218 notification
process
The Lodi City Council will consider
the proposed sewer rate increases at
a public hearing at 7 p.m. Wednesday,
July 15, 2009, at the C.amegie Forum, 305
VX'. Pine St., I.otli.
Proposition 218 requires that the City'
provide a notice of the proposed rate
schedule to all property owners forty-five
(45) days prior to holding a public heating.
If a majority of the property owners file
oppositions to the increase, the increase
will not take effect. Property owners and
renters who pay their sewer bill may file a
written and signed protest against the pro-
posed increases faith the City Clerk at or
before the close of the public hearing. A
protest most contain a description of the
property owned sufficient to identify the
property (Iht address or assessor's parcel
number is shown on this mailingl.
If you own (or rent and pay a sewer bill)
on more than one parcel, you may file a
sutgi,e protest but it must identify each
parcel you own or rent, If the name on
the written protest is not shown on the
last equalized assessment roll of San Joa-
quin County as the owner of the property
or on the utility account, the signer of the
protest must also submit written evidence
of ownership.
T'Ite City of Lodi proposes to increase its
monthly snvet rates and charges for resi-
dential, commercial and industrial users. it
is currently proposed that the increases
take effect begfnning]uly 16,20T. in ad,
dition, all sewer rates may be increased by
an amount up to the percentage increase in
the annual average of the Lagineetiug
News Record (a) cities average) iudea on
July 1 of each year from 2010 through
201.4 as needed to pay for increased costs
of providing sewer services.
At the public hearing, Council shall hear
all protests and tabulate flu ballots. One
written protest perparcel, filed by the
owner or tenant (paying the utviity bill) of
the parcel shall be counted in calculating a
majority, protest to a proposed new fee or
charge subject to the requirements of
Section 6 of Article'0II D of the Califor-
nia Constitution. if the votes conflict, the
City will count the no wrote.
VI'ritteii protests may be mailed to:
City oEI0&
Attn: City Clerk
P O. $ox 3006
Lodi, CA 95241-1910
Wtitten protests may also be delivered
in person to the City Clerk, 221 West
pine Strcct, Lodi, or at the public hearing.
'11u rate increases are being proposed in
order to provide suffscienr revenue to pay
costs of the City -'s sewet system.
Specifically, the rates will provide fund-
ing for improvements to the wastewater
treatment facility to meet State discharge
requirements, system replacement and
improvements, operations and mainte-
nance, and administrative expenses re-
Iated to the wastewater system and to
protide fanding to meet inflationary costs
of operating the utility for the next five
years. The new fee was calculated by
taking the increased operating costs and
assigning each customer the same per-
certrage of tint increase as they are cur-
rently paying. The proposed flat rates for
each classification ofproperty are deter-
mined by the estimated cost of providing
wastewater collection and treatment scr-
vice to customers in that classification
based upon the wastewater generation
characteristics of such property.
If you have any questions about this
notice, please call the Public Works De-
parunent at 333-6706 between 9 a.m. and
5 p.m, Mooday through Friday.
RiND1 {OHI., City Clerk
City of I'odi
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i iF �.i`r' �'Of this jkc by: CA *9
CITY OF LODI
P.O_BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER RESOLUTION ADJUSTING
WASTEWATER RATES
PUBLISH DATE: SATURDAY, MAY 16,2009
SATURDAY, JUNE 20,2009
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO:
DATED: MAY 11, 2009
ORDERED BY: RANDI JOHL
CITY CLERK
IFER t4jPERRIN, CMC
A SISTANT CITY CLERK
RANDI JOHL. CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
MARIA BECERRA
ADMINISTRATIVE CLERK
Rxxxd to th@ Sli 111101 et 369-1084 at (time) on (dale) (Pages)
015 Phoned to confirm receiptof all pages at (time)—JLT ".:.'sNil JMP (initials)
forms\advins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER RESOLUTION ADJUSTING
WASTEWATER RATES
On Friday, May 15 2009, in the City of Lodi, San Joaquin County, California, a Notice of
Public Hearing to consider resolution adjusting wastewater rates (attached and marked
as ExhibitA) was posted at the following locations:
Lodi Public Library
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
declare under penalty of perjurythat the foregoing is true and correct.
Executed on May 15,2009, at Lodi, California.
ANNIFEROA, PERRIN. CMC
ASSISTANT CITY CLERK
N:1Administration\CLERKTorms\DECPOSTPW.DOC
ORDERED BY:
RANDIJOHL
CITY CLERK
MARIA BECERRA
ADMINISTRATIVE CLERK
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: July 15,2009
Time: 7:00 p.m.
For information regarding this notice please contact:
Randi Johl
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
EXHIBIT A
NOTICE IS HEREBY GIVEN that on Wednesday, July 15,2009, 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
considerthe following matter:
a) Resolution adjusting wastewater rates (as identified on the attached
Exhibit A).
Information regarding this item may be obtained in the Public Works
Department, 221 West Pine Street, Lodi, (209) 333-6706. 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, 2nd
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 at, or prior to, the
public hearing.
At said hearing, any person interested, including any person owning property in
the City, may be heard as to whether said charges are discriminatory or
excessive, or will not be sufficient under Government Code Section 54515, or will
not comply with the provisions or covenants of any outstanding revenue bonds of
the City payable from the revenues of the respective enterprise, or will not
comply with the provisions of Title 5, Division 2, Part 1, Chapter 6 "The Revenue
Bond Law" of the Government Code, or an any other matter related to the
proposed charges or their method of adoption.
BypDrjer of the Lodi City Council:
City Clerk
Dated: April 15,2009
J:\CI7YCLRK\FORM51PH NOTICE publication WWRates.doc 4117109
1EXHIBIT Al
RESOLUTION NO. 2009-
A RESOLUTION OF THE LODI CITY COUNCIL ADJUSTING
WASTEWATER DISPOSAL SERVICE RATES
WHEREAS, the Council of the City of Lodi finds as follows:
1. The City of Lodi provides wastewater disposal service to its citizens;
2. The City charges customers of this utility a charge to fund the on-going
operation and maintenance of the wastewater disposal service;
3. The City Public Works Director and staff have prepared a plan outlining
the cost of operating the wastewater disposal service;
4. The Wastewater Enterprise Fund is operating at a deficit and the existing
rate structure no longer covers the cost of operating the utility;
5. The City Public Works Director has recommended increases to the
current wastewater disposal rates;
6. The City Public Works Director also recommends that the revenue
earmarks be eliminated to make revenue correspond with need and that
the Engineering News Record (ENR) Index replace the Consumer Price
Index (CPI) when determining annual cost adjustments;
7. The Council directed that notice of a hearing thereon be given to the
property owners and wastewater disposal utility customers in the City,
with such notice to include, among other matters, the information required
to be included pursuant to California law;
8. Pursuant to California Constitution, Article XIIIC and Government Code
53755, such notice has been mailed to those property owners and
account holders, at least 45 days before the hearing, as evidenced by a
Certificate of Mailing on tile with the City Clerk;
9. The Council also directed that notice of a hearing thereon be given with
such notice to include the information required to be included pursuant to
Government Code section 54354.5;
10. Such notice has been published once each week for two weeks, in
accordance with Government Code section 54354.5, in the Lodi News -
Sentinel as evidenced by Proofs of Publication on file with the City Clerk;
11. On July 15, 2009, the City Council conducted said public hearing, at
which time the City Council heard all objections and protests to the
proposed increased rates;
12. Written protests against the proposed increased rates were not presented
by a majority of the property owners and wastewater disposal utility
customers; and
follows:
13. The proposed wastewater disposal service rates are not discriminatory or
excessive, are sufficient under Government Code section 54515, comply
with the provisions or covenants of any outstanding revenue bonds of the
City payable from the revenues of the enterprise, comply with the
provisions of Title 5, Division 2, Chapter 6 of the Government Code, and
are in compliance with all other applicable law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Levvof Charaes. Pursuantto Sections 13.08.010, 13.12.240, and
13.16.110 of the Lodi Municipal Code, the increased wastewater disposal service rates
as attached hereto as ExhibitA are hereby approved.
Section 3. Subseauent Adjustments. As provided by Government Code
Section 53756, the rates shown in Exhibit may be adjusted annuallyfor a period of five
years by resolution beginning July of 2010 through July of 2015, with Council approval
following a public hearing, in an amount not to exceed the percentage change in the
Engineering News Record (ENR) Twenty Cities Annual Average Index or other index as
approved by the City Council by resolution. The adjustment shall not be made if it
causes rates to exceed the cost of service and Notice of the Adjustment shall be mailed
to each account not less than 30 days before the effective date of the adjustment.
Section 4. Effective Date. This resolution shall take effect from and after the
date of its passage.
Dated: July 15, 2009
hereby certify that Resolution No. 2009- was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 15, 2009, by the following
vote:
AYES; COUNCIL MEMBERS—
NOES: COUNCIL MEMBERS -
ABSENT: COUNCIL MEMBERS -
ABSTAIN: COUNCILMEMBERS-
RANDIJOHL
City Clerk
2009-
City of Lodi Wastewater Utility
$266.28
5332.88
399.48
439.44
461.40
High Strength User:
Proposed Wastewater Rates
Flow (per MG. annual basis)
2,247.10
2,808.88
3,370.66
3,707.73
I
I Current Rates
BOD (per 1,000lbs.,annuai basis)
Rates Effective I
Rates Effective
Rates Effective
Rates Effective
642.47
SS (per 1,000 Ib., annual basis)
231.86
289.83
0711612009
0711612010
07/16/2011
0711612012
196.35
245.44
294.53
Month!,
Month!
Monthly
Month!
Monthly
Residential
Base
Infr.
Totall
Toial
Total
Total
Total
1 BR
$11.84
$4.81
$16.65
$20.81
$24.97
$27.47
528.84
2 BR
15.78
6.41
22.19
27.74
33.29
36.621
38.45
3 BR
19.73
8.01
2.7.74
34.68
41.61
45.78
48.06
4 BR
23.67
9.62
33.29
41.61
49.94
54.93
57.68
5 BR
27.62
11.22
36.84
48.55
58.2
64.09
67.29
6 BR
31.56
12.82
44.38
55.48
66.58
73.24
76.90
7 BR
35.51
14.42
49.93
62.42
74.90
82.40
86.51
Moderate Strength (annual per SSU)
$266.28
5332.88
399.48
439.44
461.40
High Strength User:
Flow (per MG. annual basis)
2,247.10
2,808.88
3,370.66
3,707.73
31893.12
BOD (per 1,000lbs.,annuai basis)
370.83
463.54
556.25
611.88
642.47
SS (per 1,000 Ib., annual basis)
231.86
289.83
347.80
382.58
401.71
Grease Incepter & Septic Holding
196.35
245.44
294.53
323.98
340.18
Tank Waste within City Limits (per
1,000 gal.)
Seplic (only) Holding Tank Waste
416.82
521.03
625.24
687.76
722.15
Outside City limits (per 1, 000 gal.)
Disposalto Storm Drain System (perMG)
206.24
257.80
309.36
340.30
357.32
Disposalto Industrial System:
nla rates adjusted
nla rates adjusted
nla rates adjusted
nla rates adjusted
Flow (per MG. annual basis)
2,218.78
annually per
annually per
annuallyper
annuallyper
BOD (per 1,000 lbs., annual basis)
20.34
LMC § 13.12.210
LMC § 13.12.210
LMC § 13.12.210
LMC § 13.12.210
Winery Waste (ner 1.000 aal.)
198.82
248.53
298.24
328.06
344.46
AHi217 A