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Home My WebLink AboutAgenda Report - March 20, 2013 C-19 PHAGENDA ITEM -019 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Set Public Hearing for May 15, 2013, to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Wastewater Rates for Residential, Commercial and Industrial Customers MEETING DATE: March 20, 2013 PREPARED BY: Public Works Director RECOMMENDED ACTION: Set public hearing for May 15, 2013, to consider adopting resolution setting pre -approved Engineering News Record Adjustment Index for wastewater rates for residential, commercial and industrial customers. BACKGROUND INFORMATION: City Council approved wastewater rate increases of 25 percent effective July 16, 2009; 20 percent effective July 1, 2010; 10 percent effective July 1, 2011; and 5 percent effective July 1, 2012. Also, the City Council approved an Engineering News Record — 20 Cities Average (ENR) based indexing of wastewater rates beginning with FY 2012/13. A Proposition 218 procedure was conducted that validated these actions. Staff has regularly updated the Wastewater Utility Financial Plan and a copy of the current Financial Plan is attached as Exhibit A. The recommended rate adjustments in the Financial Plan are 2.5 percent beginning July 1, 2013. The rates for this next year, attached as Exhibit B, reflect an increase of 2.5 percent, which is lower than the ENR -based index of 2.8. The rate increase for this past year was 3 percent, lower than the 5 -percent increase anticipated in 2009. FISCAL IMPACT: Increased revenues to the wastewater utility are required to keep up with cost of service increases and new mandated costs. FUNDING AVAILABLE: Not applicable. Aa�_ - F. Wally sgnaeTin Public Works Director FWS/pmf Attachments cc: Information Systems Manager Deputy Public Works Director — Utilities APPROVED: 2j "'- --' e Konradt Bartlam, City Manager K:\WP\UTILITY RATES\W WW\2013 W WW Rate Increase\CCSetPH—WWRates.doc 3/4/2013 City of Lodi -- Wastewater Utility Financial Plan Summary Beginning Balance Revenues Wastewater Sales Interest Earnings Other Revenues Transfer In for Debt Service (172) Transfer In for Debt Service (173) Transfer From/(To) Rate Stabilization Fund (174) Total Revenues Expenditures Transfer Out to Gen'I Fund (Cost of Services) Transfer Out to WW Capital Outlay (171) Transfer Out To WW Cap. Rsrv. (172) Administration & Other Plant Maintenance Sanitary System Maintenance Storm Drainage Maintenance Industrial System Maintenance 2003 Wastewater COP Debt Service 2004 Wastewater COP Debt Service 2007 Wastewater COP Debt Service 2012 Wastewater Refinancing Total Expenditures Ending Balance Operating Reserve (25%) Available Balance Debt Service Coverage (min. = 1.20) without COST Beginning Balance Revenues Transfer In (from 170) Transfer In (from 170-Deprec.) Other Revenue Investment Earnings Total Revenues Expenditures Financial System Replacement FY 12-13 1 FY 13-14 1 FY 14-15 FY 15-16 1 FY 16-17 1 FY 17-18 1 FY 18-19 1 FY 19-20 3% 2.5% 3% 3% 3% 3% 3% 3% 2,892,538 5,461,860 4,362,182 4,244,104 4,293,626 5,833,748 7,069,470 8,805,792 13,705,000 14,075,000 14, 525,000 14, 990,000 15,470,000 15,965,000 16,476,000 17,003,000 34,000 60,000 49,000 166,000 168,000 222,000 265,000 326,000 196,000 202,300 208,600 214,900 221,200 227,500 233,800 241,200 31,000 31,000 31,000 110,000 110,000 110,000 110,000 110,000 1,433,000 7,000 83,000 97,000 113,000 129,000 299,000 415,000 15,399,000 14, 375,300 14,896,600 15, 577,900 16,082, 200 16,653, 500 17, 383,800 18,095, 200 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 500,000 500,000 3,000,000 3,250,000 2,000,000 2,575,000 2,500,000 3,500,000 1,075,980 1,116,500 1,159,200 1,202,900 1,247,600 1,294,300 1,343,000 1,392,700 4,016,000 4,174,000 4,339,000 4,510,000 4,689,000 4,876,000 5,069,000 5,271,000 702,090 728,000 755,000 783,000 812,000 842,000 873,000 906,000 556,560 579,000 602,000 627,000 652,000 678,000 706,000 735,000 34,570 36,000 37,000 38,000 39,000 40,000 41,000 42,000 381,000 3,266,000 - - - - - - 2,138,000 98,000 98,000 98,000 98,000 98,000 98,000 98,000 1,599,000 1,604,000 1,603,000 1,607,000 1,606,000 1,614,000 1,617,000 1,609,000 375,000 1,922,000 1,970,000 1,961,000 1,947,000 1,949,000 1,949,000 1,951,000 12,829,678 15,474,978 15,014,678 15,528,378 14,542,078 15,417,778 15,647,478 16,956,178 5,461,860 4,362,182 4,244,104 4,293,626 5,833,748 7,069,470 8,805,792 9,944,814 2,989,000 3,263,000 2,511,000 2,579,000 2,649,000 2,723,000 2,800,000 2,876,000 25% 2,472,860 1,099,182 1,733,104 1,714,626 3,184,748 4,346,470 6,005,792 7,068,814 1.54 0.96 1.86 1.97 2.04 2.11 2.19 2.27 1.86 2.23 2.25 2.37 2.44 2.51 2.58 2.67 7,394,480 5,483,810 2,839,810 1,413,810 348,810 1,439,810 328,810 2,261,810 - - 2,500,000 2,750,000 1,500,000 2,075,000 2,000,000 3,000,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 3,000,000 3,250,000 2,000,000 2,575,000 2,500,000 3,500,000 - 250,000 250,000 - - - - City of Lodi -- Wastewater Utility Financial Plan Summary FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Financial Planning 22,670 - - - - - - - Misc. System Relocations 35,000 35,000 36,000 38,000 39,000 41,000 43,000 44,000 Misc. Wastewater Taps 40,000 40,000 42,000 43,000 45,000 47,000 49,000 51,000 Collect. System Capac. Enhanc. Projects 20,000 200,000 21,000 216,000 22,000 234,000 24,000 253,000 Wastewater Main Replac./Lining Proj. 609,000 2,000,000 104,000 2,163,000 112,000 2,340,000 122,000 2,531,000 Storm Drain Trash Handling System 400,000 30,000 312,000 1,622,000 - - - - Lift Sta. Remote Term. Unit Replac. 20,000 - - - Utility Frame & Cover Replacement 110,000 - Lift Station Generator Replacements 100,000 - 260,000 - - - - - Vehicles /Equipment 150,000 75,000 62,000 70,000 79,000 877,000 182,000 190,000 White Slough Compliance Studies & Rpts - - - - - - - - Plant Maint. & Land Applic. Area Improv. 75,000 - Influent Screening Replacement 2,000,000 UV Disinfection Upgrade 300,000 - Aeration Diffuser Replacement - - - 500,000 - Cloth Filter Media Replacement 30,000 30,000 - 30,000 Digested Sludge Line to Presses 30,000 - - - Electrical Upgrades - 50,000 Admin/Ops Building Improvements - 750,000 Rotary Press Maintenance Crane 25,000 - Pond Gates 35,000 Shop Rollup Door 7,500 Emergency Generator Maintenance 20,000 Road to Outfall Repair 10,000 Secondary Scum Trough Drives 11,500 Misc Paving 10,000 - SCADA Upgrades/PLC Replacement - 75,000 Primary Chain & Flights 75,000 80,000 40,000 Boiler Retube - - 20,000 Chain Hoist 35,000 - Gas compressor (WSWPCF) 14,000 Dissolved Air Floatation Tank Rebuild 225,000 Tailwater Pump (WSWPCF) 25,000 UV Bypass System Improvements 100,000 - - - Fence Repairs/Upgrades - 25,000 25,000 25,000 Anaerobic Digester Painting 130,000 - - - Digester Cleaning & Gas Scrubber Relining 125,000 - Plant Security Enhancements - 130,000 - - - - - - Miscellaneous Future Projects 100,000 100,000 104,000 108,000 112,000 117,000 122,000 127,000 Total Expenditures 2,410,670 3,144,000 4,426,000 4,315,000 909,000 3,686,000 567,000 3,196,000 Ending Balance 5,483,810 2,839,810 1,413,810 348,810 1,439,810 328,810 2,261,810 2,565,810 City of Lodi -- Wastewater Utility Financial Plan Summary Beginning Balance Revenues Transfer In from 170 Interest Earnings Total Revenues Expenditures White Slough Solids Handling Facility White Slough Sludge Thickening Transfer Out to 170 (for Debt Service) Total Expenditures Ending Balance Restricted Debt Service Reserve 2007 COP Proceeds (w/ fiscal agent) Cash Deficit (amt. owed for past DS) Beginning Balance Revenues Wastewater IMF Wastewater IMF from PCE/TCE & WTP Interest Earnings Total Revenues Expenditures Transfer Out (to 170 for Debt Service) Transfer Out (refund PCE/TCE) City -Wide IMF Program Update Total Expenditures Ending Balance Owed to Fund 170 for Debt Service FY 12-13 1 FY 13-14 1 FY 14-15 1 FY 15-16 1 FY 16-17 1 FY 17-18 1 FY 18-19 1 FY 19-20 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 31,000 31,000 31,000 110,000 110,000 110,000 110,000 110,000 31,000 31,000 31,000 110,000 110,000 110,000 110,000 110,000 31,000 31,000 31,000 110,000 110,000 110,000 110,000 110,000 31,000 31,000 31,000 110,000 110,000 110,000 110,000 110,000 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 3,135,539 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 756,003 756,003 756,003 756,003 756,003 756,003 756,003 756,003 662,952 6,952 82,952 96,952 112,952 128,952 298,569 414,569 770,000 333,000 346,000 360,000 375,000 390,000 405,000 421,000 7,000 - 1,000 3,000 4,000 5,000 10,000 15,000 777,000 333,000 347,000 363,000 379,000 395,000 415,000 436,000 1,433,000 7,000 83,000 97,000 113,000 129,000 299,000 415,000 - 250,000 250,000 250,000 250,000 96,383 - - 1,433,000 257,000 333,000 347,000 363,000 225,383 299,000 415,000 6,952 82,952 96,952 112,952 128,952 298,569 414,569 435,569 116,000 1,919,000 2,796,000 3,662,000 4,511,000 5,349,000 6,019,000 6,568,000 City of Lodi -- Wastewater Utility Financial Plan Summary Beginning Balance Revenues Transfer In from 170 Total Revenues Expenditures Transfer Out to 170 Total Expenditures Ending Balance FY 12-13 I FY 13-14 I FY 14-15 I FY 15-16 I FY 16-17 I FY 17-18 I FY 18-19 I FY 19-20 16,582,000 Operating Reserve (25%) 2,989,000 3,263,000 2,511,000 2,579,000 2,649,000 2,723,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Aggregate End -of -Year Balance 14,588,000 10,920,000 9,390,000 8,391,000 11,038,000 11,332,000 15,118,000 16,582,000 Operating Reserve (25%) 2,989,000 3,263,000 2,511,000 2,579,000 2,649,000 2,723,000 2,800,000 2,876,000 Restricted DS Reserve 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2,379,536 2007 COP Proceeds 756,003 756,003 756,003 756,003 756,003 756,003 756,003 756,003 Rate Stabilization Fund 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Net Available for Capital Projects 7,963,461 4,021,461 3,243,461 2,176,461 4,753,461 4,973,461 8,682,461 10,070,461 Exhibit B City of Lodi -- Wastewater Utility current ana Proposes wastewater nates Notes: (1) Winter water usage determined as average monthly usage from December through February. Current July 2013 Residential Percent Increase 2.5 Flat Rates ($/month) 1 Bedroom $ 25.20 $ 25.83 2 Bedroom $ 33.60 $ 34.44 3 Bedroom $ 42.00 $ 43.05 4 Bedroom $ 50.40 $ 51.66 5 Bedroom $ 58.80 $ 60.27 6 Bedroom $ 67.20 $ 68.88 7 Bedroom $ 75.60 $ 77.49 Usage -Based Rates Service Charge ($/month) $ 22.95 $ 23.52 Usage Charge ($/CCF) (1) $ 2.61 $ 2.68 Non -Residential ($/month) Moderate Strength (per SSU) $ 33.60 $ 34.44 High Strength Flow (per MG, annual basis) $ 3,402.35 $ 3,487.41 BOD (per 1,000 lbs, annual basis) $ 561.47 $ 575.51 SS (per 1,000 lbs, annual basis) $ 351.07 $ 359.85 Grease Interceptor & Septic Holding Tank Waste within City Limits (per 1,000 gal.) $ 297.29 $ 304.72 Septic (only) Holding Tank Waste Outside City Limits (per 1,000 gal.) $ 631.11 $ 646.89 Disposal to Storm Drain System (per MG) $ 312.28 $ 320.09 Notes: (1) Winter water usage determined as average monthly usage from December through February. Please immediately confirm receipt of this fax 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 WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS PUBLISH DATE: SATURDAY, MARCH 23, 2013 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO LNS ACCT. #0510052 DATED: THURSDAY, MARCH 21, 2013 ORDERED BY: RANDI JOHL CITY CLERK J NIFER ROBISON, CMC ASSISTANT CITY CLERK RANDI JOHL, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 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 WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS On Thursday, March 21, 2013, 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 wastewater rates for residential, commercial, and industrial customers (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 I declare under penalty of perjury that the foregoing is true and correct. Executed on March 21, 2013, at Lodi, California. Q"A Ag o'10—D A (INN-11FE101M. ROBISON, CMC ASSISTANT CITY CLERK N:\Administration\CLERK\Forms\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: May 15, 2013 Time: 7:00 p.m. For information regarding this notice please contact: Randi Johl City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, May 15, 2013, 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) Resolution setting pre -approved Engineering News Record adjustment index for wastewater rates for residential, commercial, and industrial customers (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. B rder of the Lodi City Council: a I City Clerk Dated: March 20, 2013 Approved as to form: __:E� D. StephenSchwabau r City Attorney J:\CITYCLRK\FORMS\PH NOTICE publication WWRates.doc 3/20/13 - .� 1 sEXHijI City of Lodi -- Wastewater Utility Current and Proposea wastewater Kates Current July 2013 Residential Percent Increase 2.5 Flat Rates ($/month) 1 Bedroom $ 25.20 $ 25.83 2 Bedroom $ 33.60 $ 34.44 3 Bedroom $ 42.00 $ 43.05 4 Bedroom $ 50.40 $ 51.66 5 Bedroom $ 58.80 $ 60.27 6 Bedroom $ 67.20 $ 68.88 7 Bedroom $ 75.60 $ 77.49 Usage -Based Rates Service Charge ($/month) $ 22.95 $ 23.52 Usage Charge ($/CCF) (1) $ 2.61 $ 2.68 Non -Residential ($/month) Moderate Strength (per SSU) $ 33.60 $ 34.44 High Strength Flow (per MG, annual basis) $ 3,402.35 $ 3,487.41 BOD (per 1,000 lbs, annual basis) $ 561.47 $ 575.51 SS (per 1,000 lbs, annual basis) $ 351.07 $ 359.85 Grease Interceptor & Septic Holding Tank Waste within City Limits (per 1,000 gal.) $ 297.29 $ 304.72 Septic (only) Holding Tank Waste Outside City Limits (per 1,000 gal.) $ 631.11 $ 646.89 Disposal to Storm Drain System (per MG) $ 312.28 $ 320.09 Notes: (1) Winter water usage determined as average monthly usage from December through February.