HomeMy WebLinkAboutAgenda Report - October 1, 1986 (97)RES. NO. 86-152
Council was reminded that at the Shirtsleeve Session of
August 26, 1986, Dave Requa from the firm of Black and
CC-6
Veatch reviewed with the Council the final report and study
CC-44
entitled "Facility, Operations and Financial Analysis -
= CC-51(a)
White Slough Water Pollution Control Facility." The City
Staff also reviewed with the City Council the recommnded '
increases for monthly service charges and connection fees.
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A proposed resolution for the adoption of the ceded
fees was presented for Council's review. This proposed =
resolution was written so that sewer fees related to the
domestic sewer system will automatically be adjusted upward
15% each year. Once the revised construction time is
calculated and the actual plant expansion costs (both
phases) are known, there may be a need to modify this
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resolution.
Following 'a lengthy discussion with questions being
directed to Staff, Council, on motion of Council Member
Hinchman, Reid second, adopted Resolution No. 86-152
implementing increased sewer rate fees effective October 1,
1986.
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The motion carried by the following vote:
-;
Ayes: Council Members Hinchman, olson, and Reid
(Mayor)
Noes: Council Members - Pinkerton and Snider
Absent: Council Members -`None
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CITY Of L O D i COUNCIL COMMUNICATION
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TO: City Council
FROM: City Manager
MEETING DATE: October 1, 1986
SUBJECT: Adjustments to Sanitary Sewer Fee Schedule
RECOMMENDED ACTION: That the City Council review the recommended sanitary
sewer rate increases and implement the increases effective October 1, 1986.
BACKGROUND INFORMATION: At the Shirtsleeve Session of August 26, 1986,
ave Requa from t e irm of Black & Veatch reviewed with the Council the
final report and study entitled "Facility, Operations and Financial Analysis
White Slough Water Pollution Control Facility." The City staff also reviewed
with the City Council the recommended increases for monthly service charges
and connection fees outlined in the attached memo dated August 15, 1986.
Previously distributed to the City Council was a memo dated September 8, 1986
which covered other possible development fee increases which may be brought
to the City Council within the next year. This information was requested by
the City Council during the sewer fee discussion which took place at the
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Shirtsleeve Session of August 26, 1986.
Attached is a proposed resolution for the adoption of the recommended fees.
This proposed resolution has been written so that sewer fees related to the
domestic sewer system will automatically be adjusted upward 15% each year.
Once the revised construction time is calculated and the actual plant
t
-expansion costs (both phases) are known, there may be need to modify this
resolution. For purposes of comparison, the existing fees have also been
shown on the proposed resolution.
It is recommended that the proposed sewer fee increases be approved and made
effe ve October 1, 1986.
Jack L. Ronsko
Public Works Director
Attachments
cc: Finance Director
Water/Wastewater Superintendent
Black & Veatch
APPROVED: _.__
t� �—
FILE NO.
MEMORANDUM, City of Lodi, Public Works Department
'
TO: City Manager
q'
City Council -
FROM: Public Works Director
DATE: August 15, 1986
(Revised September 24, 1986) -
SUBJECT: Acceptance of Operations and Financial Analysis Report for
White Slough Treatment Facility and Determination of Rate
Increases for Future Plant Expansion
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-
Attached is a copy of the final report prepared by Black &Veatch entitled
"Facility, Operations and Financial Analysis - White Slough Water
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Pollution Control Facility" dated July 1986. The major contents of this
,.
plan were reviewed with the City Council and public at a hearing at
Hutchins Square on May 28, 1986.
At that hearing, there were two major questions discussed. One, whether
or not to phase the plant expansion and,' two, what was the appropriate
method for increasing sewer rates to finance new plant construction.
PHASING
Based on the following cost breakdown and the fact that there was some
uncertainty as it related to City growth due to the Growth Initiative, it
was concluded that the City of Lodi should have a two-phase expansion
program to carry it through the year 2006.
F;
Capacity Plant Life Cost
Without Phasing 8.4 MGD* 1991-2006 $8,043,000
?
With Phasing
(4111 -
Phase I 6.8 MGD 1991-1998 $6,045,000
'
Phase II 8.4 MGD 1998-2006 $2,449,000
$8,494,000
*Existing capacity is 5.8 million gallons per day (MGD)
+
SEWER RATE INCREASES
The question that still must be answered is: "How to increase monthly
sewer service charges and new connection fees in order to obtain the
required revenue to finance revenue bonds for the plant expansion?"
The financial plan and alternatives are covered in Chapter 5 of the
attached report.
Listed below is a short discussion with a recommendation on monthly sewer
service charges and new connection fees.
Monthly Service Charges
o The monthly service charge has not been increased since 1975 (11
years).
o - The present three-bedroom rate ($4.24 per month) is 74% below the
average of other valley cities. (See attached Exhibit A.)
o The average rate for other valley cities is $7.38 per month.
Listed below are some of the possible ways that this rate can be
increased. The first three methods are shown on Figures 5-1 through 5-5
in the attached report.
1. A 10% increase per year until construction of Phase 1 (approximately
$0.50 per year increase).
2. Total increase at time of Phase 1 construction (approximately $2.50
per month increase.
3. A 10% increase now with remaining increase at time of Phase 1
construction (approximately $0.50 per month and $2.00 per month
increase).
4. Any combination of the above.
Recommended Increase in Monthly Service Charge
It is recommended that in September 1986 the City Council implement a 20%
increase with a 15% annual increase thereafter starting July 1987 until
the first phase construction. Listed below would be the actual monthly
service charges based on a three-bedroom home.
1985-86 (Existing) $4.24
1986-87 (Starting September) 5.09 Note: Current average
1987-88 5.85 for valley cities is now
1988-89 6.73 $7.38/month
1989-90 7.74
For Council's information, a straight 15% annual increase would provide
the following increases based on a three-bedroom home:
1985-86 $4.24
1986-87 4.87 Note: Current average
1987-88 5.60 for valley cities is now
1988-89 6.45 $7.38/month
1989-90 7.41
Connection Fee for New Services
o The connection fee has not been increased since 1975 (11 years).
o The present connection fee for a three-bedroom home ($360) is 215%
below the average of other valley cities.
o The average fee for other valley cities is $1134 for a three-bedroom
home. However, a number of valley cities are now studying connection
fee increases. Manteca just increased their fee from $1220 to $2222.
Listed below are some of the possible ways that this rate can be increased.
1. Immediate increase to $560, $750, $1500, or $2250 per connection.
These increases are shown in Figures 5-1 through 5-5 in the attached -
report.
2. Other flat or incremental increases.
Recommended Increase in Connection Fee
Itis recommended that in September 1986 the City Council implement an
increase in the connection fee to $1500 ($1200 per Sewage Service Unit)
for a three-bedroom home, with a 15% annual increase thereafter starting
July 1.987 until the first phase construction. Listed below would be the
actual connection fee based on a three-bedroom home.
1.985-86 (Existing) $ 360
1.986-87 (Starting September) 1500 Note: Current average
1.987-88 1725 for valley cities is now
1.988-89 1984 $1134/connection
1989-90 2281
For Ccuncil's information, implementation of a $1200 connection fee ($960
per Sewage Service Unit) with a 10% annual increase thereafter would be as
follows:
1985-86 $ 360
1986-87 1200 Note: Current average
1987-88 1320 for valley cities is now
1988-89 1452 $1134/connection
.1989-90 1197
At the Shirtsleeve Session of August 26, 1986, Dave Requa from the firm of
Black & Veatch reviewed with the City Council the final financial chapter
in the attached report.
It is critical that the City Council immediately implement some types
of sewer rate increases in order that t e qty of Lodi will be in a
position to finance the next required expansion of our White Slough Water
Pollution Control Facility.
"�"0rLblic
. Ronsko
Works Director
Attachments
cc: Black & Veatch
Finance Director
Water/Wastewater, Superintendent
Water. Treatment Supervisor
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Exhibit A
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SE:'ER-CONNECTION AND SP�VICE CFARGE SURVEY
Sewer
Monthly Se.:er
Connection Fee
Cityrge
Service Cha
s
Fairfield
$3350
$8.80
Roseville
2400
9.50:;`
Chico
1950
3.40
Vacaville
1780
7.70.
Modesto
1400
4.75
1370
7.00
Woodland
Manteca
1220 n0 vi
5.75.°
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Stockton
780
7.80 =
Clovis.
740 '
4.00:
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Yuba City
600
9.95
550
8.00
Redding
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Sacramento
510
8.26
Turlock
450
4.00
a
Merced
430
7.67
u .
LODI
360
4.24
Tracy
3301 (to increase)
9.00
(10 times ±)
.
Davis
290
5.50
is
Average
$1134
$7.38
(excluding Lodi)
Median
S 760 ($),000 with)
$7.68
a
(Tracy increase)
9:F
% LODI is BELOW average
215e
74$
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Assumptions:
° 3 bedroom house
° Lot size: 60x100
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° Gross Acres of Lot: 0.18 Ac
° Fees do not include cost of
providing sewer lateral
1'Rates now under revision.
*--includes known. 1986 ?unt.'luly
increase.
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RESOLUTION NO.
SEWER CHARGES AND FEES
WHEREAS, the City Council has adopted Chapter 13.12 of the Lodi 'City Code,
entitled "SewerService," which provides the method of establishing, charges and
fees for sewer service, sewer connections, holding tank wastes,, and use of the
storm drain system; and
WHEREAS, the City Council desires to provide current and equable sewer
charges and fees;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi:
1. That the following sewer charges and fees be established and implemented
October 1, 1986:
DOMESTIC SYSTEM
EXISTING RATES
A. Residential
a. Sewer Service Charge
Number of Bedrooms Monthly Rate
1
2
3
4
5
6
7
$3.05
4.07
5.09
6.11
7.12
8.14
9.14
b. Connection Fee
$1,200.00
per
unit*
$290.00/unit
($1,500.00/3•BR home)
($360.00/3 -BR
home):
B. Commercial
a. Annual Sewage Service
$48.84.per
unit per year
$40.64/unit/year L
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b. Connection Feer
$1,200.00
per
unit
$290.00/unit
C. Industrial
a. Annual Sewage Service
Unit Item
Unit Charge
Flow - MG
$235.00
per
MG
$195.80/MG
BOD - 1,000 lbs.
115.00
per
1,000 lbs.
96.22/1,000
lbs,
SS - 1,000 lbs.
94.00
per
1,000 lbs.
78.27/1,000
lbs
b. Connection Fee
Moderate Strength User
$1,200.00
per
unit
$290.00/unit
*"Unit" - Sewage Service Unit, defined as
each
increment of flow equal to; the'.fl.ow
of ,a typical two-bedroom residence.
EXISTING RATES
High Strength User
Unit Item Unit Charge
Flow - MG $388.00 per MG $93.67/MG
BOD - 1,000 lbs. 160.00 per 1,000 lbs. 38.70/1,000 lbs
SS - 1,000 lbs. 72.00 per 1,000 lbs. 17.28/1,000 lbs.
INDUSTRIAL SYSTEM
9
A. Annual Sewage Service
Unit Item Unit Charge
Flow - MG To be determined annually by the Same
BOD - 1,000 lbs. Public Works Director as outlined =
in Section 13.12.200 of the Lodi
City Code
B. Connection Fee
To be determined annually by the j Same
Public Works Director as outlined
in Section 13.12.210 of the Lodi
City Code
HOLDING TANK WASTES
A. Dumping Charge
STORM DRAIN SYSTEM
A. Storm Drain Disposal Charge
$36.00 per 1,000 gal. $30.00/1,000 lbs.
$50.00 per MG
Same
2. That the above fees for the Domestic System and Holding Tank Wastes be
increased 15% annually on October I of each year until the treatment plant
expansion is completed or this resolution is superseded.
Dated:
I hereby certify that Resolution No.
was passed and adopted by the City Council
of the City of Lodi in a meeting
held by the following vote:
Ayes Councilmembers -
Noes: Councilmembers -
Absent: Councilmembers -
ALICE M. REIMCHE
City Clark
RESOLUTION NO. 86-152
SEWER CHARGES AND FEES
WHEREAS, the City Council has adopted Chapter 13.12 ofthe.Lodi City Code,
entitled "Sewe.: Service,° which provides the method of establishing charges and
fees for sewer service, sewer connections, holding tank wastes, and use of the
storm drain system; and
TAM REAS, the City Council desires to provide current and equable sewer
- charges and fees;
- NOW TMEMRE, BE IT RESOLVED by the City Council of the City of Lodi:
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x 1. That the following sewer charges and fees be established and implemented
:-
October. 1, 1986:
DOMESTIC SYSTEM
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A. Residential
{
Y a. Sewer Service Charge
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E Number of Bedrocros Monthly Rate
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1 $3.05
2 4.07
3 5.09
4 6.11
f 5 7.12
6 .8.14
r =
7 9.14
b. Connection Fee $1,200.00 per unit*
B. Commercial
,
a. Annual Sewage Service $48.84 per; unit per year
b. Connection Fee $1,200.00 per unit
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C. Industrial
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a. Annual Sewage Service
Unit Item Unit Charge
Flow - MG $235.00 per MG
BOB - 1,000 lbs. 115.00 per 1,000 lbs.
SS -- 1,000 lbs. 94.00 per 1,000 lbs.
High Strength User
Unit Item
Flow MG
BCD - 1,00 lbs.
SS - 1,000 lbs.
INDUSTRIAL SYSTEM
A. Annual Sewage Service
Unit Item
Unit {farce
$388.00 per MG
160.00 per 1,000 lbs.
72.00 per 1,000 lbs.
Unit Charge