HomeMy WebLinkAboutAgenda Report - November 6, 2013 C-22 PHAGENDA ITEM C*
CITY OF LODIOQ<lFOR�`PCOUNCIL COMMUNICATIONTM
AGENDA TITLE: Set Public Hearing for December 18, 2013, to Consider Adopting Resolution
Setting Pre -Approved Engineering News Record Adjustment Index for
Usage -Based and Flat Water Rates for Residential, Commercial and Industrial
Customers
MEETING DATE: November 6, 2013
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Set public hearing for December 18, 2013, to consider adopting
resolution setting pre -approved Engineering News Record
adjustment index for usage -based and flat water rates for
residential, commercial and industrial customers.
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 18, 2013, City Council meeting will be to conduct a
public hearing and to approve a rate increase of 2.5 percent effective February 15, 2014, as presented in
Exhibit A. The ENR -based adjustment for the period October 2012 through October 2013 is 3.3 percent.
A summary of the programmed rate adjustments and the implemented rate adjustments for the past five
years is provided in the table in Exhibit B. The purpose of this table is to demonstrate past rate increases
have frequently been below the approved adjustments.
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 1 for 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. Staff continues to update and use this model to forecast the
performance of the utility through FY 2018/19 while incorporating substantial capital investments, including
the water meter program, infrastructure replacement program, property owner meter payments and
PCE/TCE remediation costs. The recommended rates presented in Exhibit A were developed using this tool.
It is staff's recommendation that the water rate increase be 2.5 percent. For a resident still on the flat
rate, the monthly charge for a three-bedroom home will increase from $43.04 to $44.12. A metered
resident using 1,500 cubic feet of water per month will see an increase from $39.88 to $40.82.
APPROVED:
onradt Bartlam,
KAWP\UTILITY RATES\W WW\2014 W -WW Rate Increase\CCSetPH WaterRates.doc
Manager
10/22/2013
Set Public Hearing for December 18, 2013, to Consider Adopting Resolution Setting Pre -Approved
Engineering News Record Adjustment Index for Usage -Based and Flat Water Rates for Residential,
Commercial and Industrial Customers
November 6, 2013
Page 2
FISCAL IMPACT: Increased revenues to the water utility are required to keep up with cost of
service increases and new mandated costs.
FUNDING AVAILABLE: Not applicable.
F. Wally ndelin
Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
Attachments
cc: Steve Mann, Information Systems Manager
Larry Parlin, Deputy Public Works Director — Utilities
K:\WP\UTILITY RATES\W WW\2014 W -WW Rate Increase\CCSetPH_WaterRates.doc 10/22/2013
Exhibit A
City of Lodi -- Water Utility
current ana Proposed water Rates
Current
Jan. 2014
Flat Rates ($/month)
Percent Increase
2.5%
Single Family Residential Unit ($/month)
1 Bedroom
$
29.90
$
30.65
2 Bedroom
$
35.91
$
36.81
3 Bedroom
$
43.04
$
44.12
4 Bedroom
$
51.72
$
53.01
5 Bedroom
$
62.03
$
63.58
6 Bedroom
$
74.44
$
76.30
7 Bedroom
$
89.31
$
91.54
Multi -Family Residential Unit ($/month)
1 Bedroom
$
25.67
$
26.31
2 Bedroom
$
30.79
$
31.56
3 Bedroom
$
36.94
$
37.86
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
$
23.78
$
24.37
1" Meter
$
38.60
$
39.57
1 1/2" Meter
$
75.42
$
77.31
2" Meter
$
119.79
$
122.78
Multi -Family and Non -Residential
5/8" Meter
$
23.78
$
24.37
3/4" Meter
$
23.78
$
24.37
1" Meter
$
38.60
$
39.57
1 1/2" Meter
$
60.24
$
61.75
2" Meter
$
75.27
$
77.15
3" Meter
$
105.38
$
108.01
4" Meter
$
135.51
$
138.90
6" Meter
$
195.68
$
200.57
8" Meter
$
255.91
$
262.31
10" Meter
$
316.10
$
324.00
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1 - 0 to 10 CCF/month
$
0.92
$
0.94
Tier 2 - 11 to 50 CCF/month
$
1.38
$
1.41
Tier 3 - Over 50 CCF/month
$
1.82
$
1.87
Multi -Family and Non -Residential
All Water Usage
$
0.92
$
0.94
Exhibit B
Programmed and Implemented Rate Adjustments
Water
Year
Programmed
Implemented
2009
0
0
2010
0
0
2011
2
2
2012
2.53
2.2
2013
2.5
2.5
2014
3.3
2.5
Water rate adjustments were not capped, therefore, programmed
adjustments equal the approved adjustments.
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 ADOPTION OF RESOLUTION
SETTING PRE -APPROVED ENGINEERING NEWS RECORD
ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT WATER
RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
CUSTOMERS
PUBLISH DATE: SATURDAY, NOVEMBER 9, 2013
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: RANDI JOHL-OLSON, CITY CLERK
LNS ACCT. #0510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, NOVEMBER 7, 2013
ORDERED BY: RANDI JOHL-OLSON
CITY CLERK
JgWIFER M-UR0818ON, CMC
A8tISTANT CITY CLERK
forms\advins.doc
MARIA DITMORE
ADMINISTRATIVE CLERK
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR
USAGE -BASED AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, November 7, 2013, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider adoption of resolution setting pre -approved
Engineering News Record adjustment index for usage -based and flat water rates for
residential, commercial, and industrial customers (attached and marked as Exhibit A)
was posted at the following locations:
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 November 7, 2013, at Lodi, California.
IN •
N:\Administration\CLERK\Forms\DECPOSTPW.DOC
RANDI JOHL-OLSON
CITY CLERK
MARIA DITMORE
ADMINISTRATIVE CLERK
CITY OF LODI
Carnegie Forum
• 305 West Pine Street, Lodi
44
NOTICE OF PUBLIC HEARING
Date: December 18, 2013
Time: 7:00 p.m.
For information regarding this notice please contact:
Randi Johl-Olson
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
E__
ayp
Ns L)
NOTICE IS HEREBY GIVEN that on Wednesday, December 18, 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) Adoption of resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water 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 r of the Lodi City Council:
R i Jo Ison
City Clerk
Dated: November 6, 2013
oved as to form:
D. Stephen Schwabauer
City Attorney
J:\CITYCLRK\FORMS\PH NOTICE publication WaterRates.doc 11/6/13
Exhibit A
City of Lodi -- Water Utility
current ano Proposea water Rates
Current
Jan. 2014
Flat Rates ($/month)
Percent Increase
2.5%
Single Family Residential Unit ($/month)
1 Bedroom
$
29.90
$
30.65
2 Bedroom
$
35.91
$
36.81
3 Bedroom
$
43.04
$
44.12
4 Bedroom
$
51.72
$
53.01
5 Bedroom
$
62.03
$
63.58
6 Bedroom
$
74.44
$
76.30
7 Bedroom
$
89.31
$
91.54
Multi -Family Residential Unit ($/month)
1 Bedroom
$
25.67
$
26.31
2 Bedroom
$
30.79
$
31.56
3 Bedroom
$
36.94
$
37.86
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
$
23.78
$
24.37
1" Meter
$
38.60
$
39.57
1 1/2" Meter
$
75.42
$
77.31
2" Meter
$
119.79
$
122.78
Multi -Family and Non -Residential
5/8" Meter
$
23.78
$
24.37
3/4" Meter
$
23.78
$
24.37
1" Meter
$
38.60
$
39.57
1 1/2" Meter
$
60.24
$
61.75
2" Meter
$
75.27
$
77.15
3" Meter
$
105.38
$
108.01
4" Meter
$
135.51
$
138.90
6" Meter
$
195.68
$
200.57
8" Meter
$
255.91
$
262.31
10" Meter
$
316.10
$
324.00
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1 - 0 to 10 CCF/month
$
0.92
$
0.94
Tier 2 - 11 to 50 CCF/month
$
1.38
$
1.41
Tier 3 - Over 50 CCF/month
$
1.82
$
1.87
Multi -Family and Non -Residential
All Water Usage
$
0.92
$
0.94