HomeMy WebLinkAboutAgenda Report - November 16, 2011 C-15 PHAGENDA ITEM (:40145
&% CITY OF LODI
,. COUNCIL COMMUNICATION
AGENDA TITLE: Set Public Hearing for December21, 2011 , to Consider Adopting Resolution
Setting Pre -Approved Engineering News Record Adjustment Index for
Usage -Based and Flat Water Rates
MEETING DATE: November 16,2011
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Set public hearing for December21, 2011 to consider adopting
resolution setting pre -approved Engineering News Record
adjustment index for usage -based and flat water rates.
BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the
past few years, as summarized below. The recommended action at
the December 21, 2011, City Council meeting will be to implement a
rate increase of 2.2 percent effective January 1, 2012, as presented in Exhibit A.
On May 20, 2009, Council waived the Consumer Price Index (CPI) adjustment of water rates based upon
a lack of new information supporting neither an increase nor a decrease. On January 6, 2010, Council
received advisory usage -based water rates for the purpose of research and customer billing comparisons.
On July 21, 2010, Council approved a change to the date for implementing the annual rate adjustment to
January Ifor each of the five years (maximum timeframe allowed by Proposition 218) following
January 1, 2011. This change was recommended so that rate changes occur at the lowest usage time of
the year. Council also changed the water rate adjustment index from the CPI to the Engineering News
Record (ENR), effective January 1, 2012, because this index better reflects the combined inflationary
effects of personnel, materials and energy costs on the total operations of the utility, as was done for the
Wastewater Rates on July 15, 2010.
Council approved a professional services agreement with The Reed Group on August 6, 2008, for the
preparation of a water utility financial model. The model has been used to forecast the performance of
the utility through FY 2019/20 while incorporating substantial capital investments, including the surface
water treatment facilities, water meter program, infrastructure replacement program, property owner
meter payments and PCE/TCE remediation costs. The recommended rates presented in ExhibitA were
developed using this tool.
While the ENR -based adjustmentfor the period October 2010 through October 2011 is 2.53 percent, the
model forecast works with an increase of just 2.2 percent, as was presented in the current copy recently
sent to Council. It is staffs recommendation that the water rate increase be 2.2 percent rather than the
actual ENR -based increase of 2.53 percent. For a resident still on the flat rate, the monthly charge for a
three-bedroom home will increase from $41.09 to $41.99. A metered resident using 1,500 cubic feet of
water per month will see an increase from $38.10 to $38.95.
FISCAL IMPACT: Increased revenues to the water utility are required to keep up with cost of
service increases and new mandated costs.
FUNDING AVAILABLE: Not applicable.
9;r F. Wally Sandell'ir
Public Works Director
Prepared by RebeccaAreida-Yadav, ManagementAnalyst
Attachment
cc: Steve Mann, Information Systems Manager A CharlieSwimley, Deputy PublicWorks Director— Utilities
APPROVED:
Kon%cft Bartlam, City Manager
K:\WP\UTILITY RATES\W WW\2012 W Rate lncreasMCCSetPH WaterRates.doc 11/7/2011
Exhibit A
City of Lodi -- Water Utility
current ana Proposea water Kates
Metered Water Rates
Current (1)
Jan. 2012
Flat Rates ($/month)
Service Charge ($/month)
Percent Increase
Single Family Residential (2)
2.2%
Single Family Residential Unit ($/month)
Up to 3/4" Meter
$
22.70
1 Bedroom
$
28.54
$
29.17
2 Bedroom
$
34.28
$
35.03
3 Bedroom
$
41.09
$
41.99
4 Bedroom
$
49.37
$
50.46
5 Bedroom
$
59.22
$
60.52
6 Bedroom
$
71.06
$
72.62
7 Bedroom
$
85.25
$
87.13
Multi -Family Residential Unit ($/month)
11/2" Meter
$
57.50
1 Bedroom
$
24.50
$
25.04
2 Bedroom
$
29.39
$
30.04
3 Bedroom
$
35.26
$
36.04
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter
$
22.70
$
23.20
1" Meter
$
36.85
$
37.66
11/2" Meter
$
72.00
$
73.58
2" Meter
$
114.35
$
116.87
Multi -Family and Non -Residential (3)
5/8" Meter
$
22.70
$
23.20
3/4" Meter
$
22.70
$
23.20
1" Meter
$
36.85
$
37.66
11/2" Meter
$
57.50
$
58.77
2" Meter
$
71.85
$
73.43
3" Meter
$
100.60
$
102.81
4" Meter
$
129.35
$
132.20
6" Meter
$
186.80
$
190.91
8" Meter
$
244.30
$
249.67
10" Meter
$
301.75
$
308.39
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1 - 0 to 10 CCF/month
$
0.88
$
0.90
Tier 2 - 11 to 50 CCF/month
$
1.32
$
1.35
Tier 3 - Over 50 CCF/month
$
1.74
$
1.78
Multi -Family and Non -Residential
All Water Usage
$
0.88
$
0.90
Please immediately confirm receipt
of thisfax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER RESOLUTION SETTING PRE -
APPROVED ENGINEERING NEWS RECORD ADJUSTMENT
INDEX FOR USAGE-BASEDAND FLAT WATER RATES
PUBLISH DATE: SATURDAY, NOVEMBER 19,2011
TEAR SHEETS WANTED: One (11 alease
SEND AFFIDAVIT AND BILLTO: RANDI JOHL, CITY CLERK
LNS ACCT. #0510052 City cf Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, NOVEMBER 17,2011
ORDERED B Y RANDI JOHL
CITY CLERK
NIFEk MJROBISON, CMC
SISTANT CITY CLERK
MARIA BECERRA
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
forms\advins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER RESOLUTION SETTING PRE -APPROVED
ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR USAGE -BASED
AND FLAT WATER RATES
On Thursday, November 17, 2011, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water rates (attached and marked as
Exhibit A) 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 perjury that the foregoing is true and correct.
Executed on November 17, 2011, at Lodi, California.
NIFER ROBISON, CMC
ASSISTANT CITY CLERK
N:\Administration\CLERK\Fonns\DECPOSTPW.DOC
ORDERED BY:
RANDI JOHL
CITY CLERK
MARIA BECERRA
ADMINISTRATIVE CLERK
• CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: December 21, 2011
Time: 7:00 p.m.
For information regarding this notice please contact:
Rand! Johl
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, December 21, 2011, 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 setting pre -approved Engineering News Record
adjustment index for usage -based and flat water 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.
"er of.the Lodi City Council:
4�� rl
City Clerk
Dated: November 16,2011
A roved as to form:
D. Stephen Schwabauer
City Attorney
JACITYCLRKtFORMSIPH NOTICE publicationWaterRates.doc 11/15/11
Exhibit A
City cf Lodi-- Water Utility
tourrent ana vroposea water nates
Metered Water Rates
Current (1)
Jan. 2012
Flat Rates ($/month)
Service Charge ($/month)
Percent Increase
Single Family Residential (2)
2.2%
Single Family Residential Unit ($/month)
Up to 3/4" Meter
$
22.70
1 Bedroom
$
28.54
$
29.17
2 Bedroom
$
34.28
$
35.03
3 Bedroom
$
41.09
$
41.99
4 Bedroom
$
49.37
$
50.46
5 Bedroom
$
59.22
$
60.52
6 Bedroom
$
71.06
$
72.62
7 Bedroom
$
85.25
$
87.13
Multi -Family Residential Unit ($/month)
37.66
11/2" Meter
$
1 Bedroom
$
24.50
$
25.04
2 Bedroom
$
29.39
$
30.04
3 Bedroom
$
35.26
$
36.04
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter
$
22.70
$
23.20
1" Meter
$
36.85
$
37.66
11/2" Meter
$
72.00
$
73.58
2" Meter
$
114.35
$
116.87
Multi -Family and Non -Residential
(3)
5/8" Meter
$
22.70
$
23.20
3/4" Meter
$
22.70
$
23.20
1" Meter
$
36.85
$
37.66
11/2" Meter
$
57.50
$
58.77
2" Meter
$
71.85
$
73.43
3" Meter
$
100.60
$
102.81
4" Meter
$
129.35
$
132.20
6" Meter
$
186.80
$
190.91
8" Meter
$
244.30
$
249.67
10" Meter
$
301.75
$
308.39
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1- 0 to 10 CCF/month
$
0.88
$
0.90
Tier 2 - 11 to SO CCF/month
$
1.32
$
1.35
Tier 3 - Over 50 CCF/month
$
1.74
$
1.78
Multi -Family and Non -Residential
All Water Usage
$
0.88
$
0.90