HomeMy WebLinkAboutAgenda Report - December 18, 2013 G-03 PHAGENDA ITEM Gf 5
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Public Hearing to Consider Adopting Resolutions Setting Future Water,
Wastewater and Solid Waste Rate Schedules Pursuant to Proposition 218 for
Residential, Commercial and Industrial Customers
MEETING DATE: December 18, 2013
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Public hearing to consider adopting resolutions setting future water,
wastewater and solid waste rate schedules pursuant to
Proposition 218 for residential, commercial, and industrial customers.
BACKGROUND INFORMATION: Rate schedules and rates analysis information were supplied to the
City Council at the October 15, 2013 Shirtsleeve meeting prior to
mailing Proposition 218 protest hearing notices and preliminary to
this public hearing to consider adopting the various rate adjustments with limits (water and wastewater)
for the period from January 1, 2014 through December 31, 2018. The various rate schedules set
maximum limits on the various rates for the next five years, and each year the City Council will be
requested to approve the actual rates to be implemented. At the public hearing, the City Council will be
asked to receive public comment; adopt a resolution approving the staff -recommended property owner
meter charge schedule; adopt a resolution approving vacant residential water and wastewater rates;
adopt a resolution setting future adjustments to water and wastewater rates with limits; and adopt a
resolution setting the annual solid waste rate adjustment at 80 to 100 percent of the annual change in the
Consumer Price Index for all Urban Consumers for San Francisco -Oakland -San Jose, California area
(CPI) with all rates effective January 1, 2014 through December 31, 2018.
Property Owner Meter Charge Schedule At the March 26, 2012 City Council meeting, various
alternative property owner meter charge schedules were presented to the City Council. Prior
policy direction from the City Council set the charge for a single-family residential 3/ -inch water
meter at $300. --As the Water Meter Program moves into the multi -family and non-residential
parcels, larger meters will be required and a meter charge schedule based upon meter size needs
to be established. Presented in Exhibit A is the recommended meter charge schedule, along with
previously -presented alternatives. The recommended charge schedule is based upon the actual
purchase price for the meter assembly (meter, register, and radio transmitter) plus 55 percent, .
which is identical to the %-inch residential meter charge basis. The 55 percent covers a portion of
the cost of the meter box, miscellaneous piping, and installation. The capacity -based charge
schedule sets the meter cost according to the hydraulic capacity of the meter. The installed cost
is based upon contractor bid prices for phases 1 through 3. The Lodi charge schedule is taken
from the City's published Fee and Service Charge Schedule. Comparative charges from the City
of Santa Clara are listed, and they are fairly consistent with the recommended schedule,
particularly considering most of the meters remaining to be installed are % to 1 inch in size. An
additional column showing "no charge" is provided upon the request of the mobile home park
APPROVED:
Konradt Bartlam, City Manager
KAMUTILITY RATES\W_WW\2014 W -WW Rate Increase\CCPH_WaterWastewaterSolidWasteRates.doc 12/9/2013
Public Hearing to Consider Adopting Resolutions Setting Future Water, Wastewater and Solid Waste
Rate Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers
December 18, 2013
Page 2
owners. All options presented in Exhibit A were included in the Proposition 218 notice and the
City Council will be asked to select and approve a single option at the public hearing.
2. Vacant Residential Unit Water and Wastewater Rate Staff recommends the vacant residential
unit water and wastewater utility charge for customers without a metered service be equal to the
monthly base charge for metered customers having the same size of meter in their future service.
There would not be a specific vacant unit charge for the following customer classes as explained.
• Vacant single family detached with meter — customers would pay the monthly base rate
and presumably there would be no usage and, therefore, no usage charge.
• Vacant single family attached (duplex, triplex, fourplex — master meter) — property owners
would pay the monthly base rate and usage charges for the occupied units.
• Vacant single family attached (duplex, triplex, fourplex — individual meter) — customers
would pay the monthly base rate and presumably there would be no usage and, therefore,
no usage charge.
• Vacant apartment/condominium (master meter) — property owners would pay the monthly
base rate and usage charges for the occupied units.
• Vacant apartment/condominium (individual meter) — property owners would pay the
monthly base rate and presumably there would be no usage and, therefore, no usage
charge.
• Vacant mobile home (master meter) — property owners would pay the monthly base rate
and usage charges for the occupied units.
3. Water and Wastewater Rate Update In 2009, the City Council approved a five-year rate program
for the wastewater utility and in 2010 for the water utility. Each separate action by the Council
complied with the Proposition 218 requirements. 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 pre -approved adjustments.
In preparation of the new five-year rate adjustment program, staff engaged the services of The
Reed Group to analyze the financial models and current rate structure for both utilities. The final
report, Water and Wastewater Rate Update Study, is provided in Exhibit C.
Staff is recommending a new five-year rate adjustment program for water, wastewater and solid
waste that will be subject to the Proposition 218 process. As in the past, rate adjustment
forecasts are based upon the financial models for the water and wastewater utilities. The water
and wastewater: financial models are provided in Exhibits D and E. For both the water and
wastewater utilities, the rate adjustments are capped at three percent per year. Solid waste rate
changes are indexed to the Consumer Price Index with no limit. Important elements of the water
and wastewater financial models are presented below.
Water Financial Model
1. Financial assumptions were checked and reconfirmed against actual numbers.
2. Annual adjustments are capped at three percent and are indexed by the Engineering
News Record 20 -Cities Average Index.
3. Capital expenditures continue for the next four years of the Water Meter Program and
include the installation of approximately 7,000 meters at residential, multi -family and non-
residential parcels.
K:\WP\UTILITY RATES\W WW\2014 W -WW Rate Increase\CCPR WaterWastewaterSolidWasteRates.doc 12/4/2013
Public Hearing to Consider Adopting Resolutions Setting Future Water, Wastewater and Solid Waste
Rate Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers
December 18, 2013
Page 3
4. Debt service payments for the water treatment facilities are approximately $2.3 million per
year.
5. New development revenue toward payment of the water plant debt service is assumed
minimal to retain the utility's high bond rating.
6. Maintenance is scheduled for all wells in the system, amounting to approximately
$1.2 million.
7. Residual bond proceeds from the water treatment facilities financing, amounting to
approximately $2.6 million, are not shown in the financial model and will most likely be
used to pay debt service in a future year.
8. Net available capital at the end of Fiscal Year 2018/19 could be used to pay off a portion
of the water treatment facilities debt at a considerable interest savings to our customers.
Wastewater Financial Model
1. Financial assumptions were checked and reconfirmed against actual numbers.
2. Annual adjustments are capped at three percent and are indexed by the Engineering
News Record 20 -Cities Average Index.
3. Wastewater main rehabilitation work continues at approximately $2.2 million every other
year.
4. The 2003 Certificates of Participation debt service was paid off this year in the amount of
$3.2 million.
5. Debt service payments for improvements at White Slough are approximately $3.5 million
per year.
6. New development revenue toward payment of the wastewater plant debt service is
assumed minimal to retain the utility's high bond rating.
7. Planned capital expenditures in the latter two years of the model of approximately $11.4
million will improve the irrigation conveyance and pumping facilities and expand the
secondary/industrial storage at White Slough.
8. Net available capital at the end of Fiscal Year 2018/19 is relatively low.
At the January 6, 2010 City Council meeting to consider setting usage -based rates for water and
wastewater, the following information was provided. "The City has an existing usage -based rate
structure for non-residential customers, and it is recommended that rate structure be maintained
for those non-residential accounts for the time being. This structure includes a monthly base
charge referenced to the meter size and a commodity charge of $0.537 per CCF as presented in
Exhibit C. It needs to be noted that the non-residential commodity charge is approximately one-
half of the weighted average residential commodity charge ($.537 versus $1.11 per CCF) and that
future work will need to be done to amend the non-residential rate structure to make it more
comparable to the residential commodity charge rate. Both the base charge and commodity
charge are likely to be increased."
The recommendations within the rate study provided in Exhibit C present a transition plan to
implement the abovementioned structural changes to the rates. In addition, the rate study
addresses the following issues regarding the City's water and wastewater utilities.
A. Estimated annual water and wastewater rate revenue requirements for the next five years
B. Current flat and usage -based water and wastewater rate structures
C. Water and wastewater customer account, water usage, and wastewater flow
characteristics and influence on rate setting
D. Cost of service and rate design issues related to development of new usage -based water
and wastewater rate structures
KAMUTILITY RATES\W WW\2014 W -WW Rate Increase\CCPR WaterWastewaterSolidWasteRates.doc 12/4/2013
Public Hearing to Consider Adopting Resolutions Setting Future Water, Wastewater and Solid Waste
Rate Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers
December 18, 2013
Page 4
E. Recommendations for new water and wastewater rate schedules over the next five years
F. Affects of the proposed new water and wastewater rates on various residential and
non-residential customers
G. Transition plans to usage -based water and wastewater rates for each customer
classification
A summary of each of the above issues is provided in Section I of the rate study. More detailed
information and analysis is provided in Sections II and III. A summary of the rate adjustments for
water and wastewater with a three percent increase and structural changes noted above are
presented in Exhibit F and were included in the Proposition 218 notice.
4. Solid Waste Rates The existing agreement with Waste Management for Solid Waste Collection,
Recycling and Green Waste Collection and Processing Services in the City of Lodi (Agreement)
was adopted in 2008 and extends until December 31, 2023. An amendment to the Agreement
was approved in 2010 that gives the Contractor the unilateral option to extend the Agreement until
December 31, 2030. Section 7 Rates, paragraphs b. and c. of the Agreement establish
provisions for annual adjustment to the rates that are repeated below.
b. On April 1, 2009, and on each anniversary thereof during the term of this Agreement, the rates
shall be adjusted in a percentage amount equal to eighty percent (809/6) of the annual change in
the Consumer Price Index for all Urban Consumers for San Francisco -Oakland -San Jose,
California area (CPI), All Items (1982 — 84 = 100) published by the Bureau of Labor Statistics (the
Index) for the twelve (12) month period ending December 31 of the preceding calendar year.
c. In January of each year, Contractor shall send to City a revised rate schedule reflecting the
new rates, as adjusted by the Index as provided in Section 7.b. City Council will act on rate
adjustments to be effective on April 1 of that year.
Staff recommends Council approve an annual rate adjustment in the percentage amount equal to
100 percent of the annual change in the CPI. Each year in March, staff will recommend to the
City Council whether an adjustment of 80 percent or 100 percent of the CPI increase is
warranted, depending upon changes in fuel, landfill and energy cost during the previous year.
This change makes any changes in fuel, landfill and energy costs inclusive in the rate adjustment,
whereas, the current Agreement has them separately considered.
FISCAL IMPACT: Increased revenues are required to keep up with cost of service increases
and new mandated costs.
FUNDING AVAILABLE: Not applicable.
jL
F. Wally ndelin
Public Works Director
FWS/pmf
Attachments
K:\WP\UTILITY RATES\W_WW\2014 W -WW Rate Increase\CCPH_WaterWastewaterSolidWasteRates.doc 12/4/2013
Exhibit A
Meter Charge Alternatives
Meter
Size
Purchase
Price
Recommended
Price
Based
Cost x 1.55
Capacity
Factor
Capacity
Based
Installed
Cost
(Contract
Prices
Lodi Fee
Schedule
Santa Clara
Fee
Schedule
No
Charge
3/4
$194
$300
1
$300
$940
$400
$370
$0
1
$226
$350
1.67
$500
$1,420
$480
$365
$0
1 'h
$506
$780
3.33
$1,000
$3,810
$745
$1,565
$0
2
$624
$970
5.33
$1,600
$5,720
$930
$1,730
$0
3
$1,279
$1,980
10
$3,000
$5,950
N/A
$2,065
$0
4
$2,304
$3,570
16.67
$5,000
N/A
N/A
$4,130
$0
6
$4,362
$6,760
33.33
$10,000
N/A
N/A
$6,750
$0
8
$7,432
$11,520
53.33
$16,000
N/A
N/A
$10,670
$0
KAWRUTILITY RATES\W WW\CShirtsleeve101513 ExA.doc
Exhibit B
Programmed and Implemented Rate Adjustments
Water
Year
Programmed
Implemented
2009
3.10M
0
2010
0.73M
0
2011
5.98 (2)
2
2012
2.53 (3)
2.2
2013
2.50 (3)
2.5
2014
3.30 (3)
2.5
(1) Consumer Price Index change
(2) Consumer Price Index change (December 2008 through December 2010)
(3) Engineering News Record Index change
K:\WP\UTILITY RATES\W_WW\2014 W -WW Rate Increase\Exhibit B.xlsx
CITY OF LODI
Water and Wastewater Rate Update Study
Final Report
October 21, 2013
THE REED GROUP, INC.
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Table of Contents
SECTIONI. SUMMARY.............................................................................................1
Introduction.........................................................................
Revenue Needs of the Water and Wastewater Utilities
Proposed Water Rates.........................................................
Proposed Wastewater Rates ..............................................
Annual Adjustments to Water and Wastewater Rates..
Affect of Proposed Rates on Customer Bills ...................
....................................................1
....................................................1
....................................................2
....................................................4
....................................................5
....................................................8
SECTION II. WATER RATES....................................................................................11
CurrentWater Rates................................................................................................................11
Customer Base and Water Usage Data.................................................................................12
Annual Water Rate Revenue Requirement..........................................................................13
Cost of Service Analysis and Rate Design............................................................................14
Proposed Water Rate Schedules............................................................................................18
Meter Installation and Transition to Usage -Based Billing.................................................19
SECTION III: WASTEWATER RATES.....................................................................21
Current Wastewater Rates................................................................
Customer Base and Wastewater Flow Estimates ..........................
Annual Wastewater Rate Revenue Requirement ..........................
Cost of Service Analysis and Rate Design ......................................
Proposed Wastewater Rate Schedules ............................................
Meter Installation and Transition to Usage -Based Billing ...........
THE REED GROUP, INC.
...................................21
...................................22
...................................23
...................................24
...................................28
...................................29
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
SECTION I. SUMMARY
INTRODUCTION
The City of Lodi continues to install water meters on unmetered service connections of
single family, multi -family, and non-residential customers. The City expects to complete
the meter retrofit program in 2018. At the beginning of each year, the City transitions
batches of customers to usage -based water rates using data collected from water meters,
and the City is also beginning to transition customers to usage -based wastewater rates as
well.
In 2008, the City retained The Reed Group, Inc. to assist in developing financial plans
and utility rates for the City's water and wastewater utilities. Various analyses have been
performed since that time to help guide the City in dealing with a variety of water and
wastewater rate and financial issues, including the transition to usage -based billing. The
purpose of this report is to recommend water and wastewater rates that will meet each
utility's financial needs and continue the transition towards usage -based billing for all
customers.
This report addresses the following issues concerning the City's water and wastewater
utilities and user rates:
❖ Estimated annual water and wastewater rate revenue requirements for the next five
years
❖ Current flat and usage -based water and wastewater rate structures, and the need to
continue to develop new usage -based rate structures
❖ Water and wastewater customer account, water usage, and wastewater flow
characteristics and influence on rate setting
❖ Cost of service and rate design issues related to development of new usage -based
water and wastewater rate structures
❖ Recommendations for new water and wastewater rate schedules, as well as
adjustments in the level of the rates during the next five years
❖ Affect of the proposed new water and wastewater rates on various residential and
non-residential customers
❖ Summary of plans to continue the transition to usage -based water and wastewater
rates for each customer classification
❖ Plans and requirements for adopting new water and wastewater rates.
REVENUE NEEDS OF THE WATER AND WASTEWATER UTILITIES
Several years ago, The Reed Group, Inc. assisted the City by developing multi-year
financial plan models for the water and wastewater utilities. These models enabled the
City to evaluate the financial implications of the meter retrofit program, the construction
and financing of the new surface water treatment plant, and other capital improvements of
both utilities, as well as ongoing operation and maintenance costs, debt service obligations,
THE REED GROUP, INC. PAGE 1
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
and other factors affecting the financial condition and needs of the utilities. Since that
time, City staff has annually updated the financial plan models. The financial plan models
have enabled the City to make near-term financial and rate decisions with a long-term
planning horizon in mind, and this has led to the moderation and stabilization of annual
rate increases for both utilities.
In recent years, annual water rate increases have been less than 3 percent, and
wastewater rate increases have declined from double-digit levels down to 2.5 percent.
Current financial plan models estimate annual water and wastewater rate increases can be
limited to 3 percent per year through FY 19-20.
Proposed water and wastewater rate schedules presented in this report reflect an
overall 2.5 percent increase in the level of water rate revenue in the upcoming year
(effective in January 2014) and no more than 3 percent in the level of the wastewater rate
revenue (effective in July 2014). Beyond that, it is recommended that the City re -adopt
provisions to annually adjust water and wastewater rate increases by changes in the
Engineering News Record's 20 -Cities Construction Cost Index (ENR) for up to five years,
subject to a 3 percent cap. These annual rate adjustments would also be subject to annual
review by staff to confirm need and concurrence by the City Council.
PROPOSED WATER RATES
Proposed flat (unmetered) water rates are presented in Exhibit I-1, and proposed
usage -based (metered) water rates are presented in Exhibit I-2. Both of these rate
schedules reflect a 2.5 percent overall rate increase in January 2014 (based on previously
approved indexing using the ENR), and 3.0 percent increases each January from 2015
through 2019 (reflecting the maximum allowed under the proposed indexing criteria). As
the City will be phasing out the flat water rates as the meter retrofit program winds down,
no changes to the structure of the flat rates are proposed.
Proposed usage -based water rates include a gradual, three-year transition in the
structure. At present, the volumetric water rate for multi -family and non-residential
accounts is equal to the first tier rate for single family customers. Under the proposed rates
the uniform multi -family and non-residential rate will equal the weighted average across
the single family tier structure, thereby bringing better balance across the various customer
classes. In addition, monthly service charges should be adjusted to better reflect the
capacity relationship across meter sizes, and thereby improve equity between large and
small customers. Both of these changes are intended to better align the water rates with
cost of service principles, as required by Proposition 218.
Exhibit I-2 includes the three years of phased rate structure changes in the rate
schedules for 2014, 2015, and 2016. The 2014 schedule reflects the 2.5 percent overall
annual rate revenue increase relative to current rates (with some rate components
increasing and others decreasing each year), and the 2015 and 2016 schedules reflect the
maximum indexing of 3.0 percent in each of those years. These transitional rate structures
would be subject to downward adjustments in both 2015 and 2016 if the City Council
determines that smaller increases are needed in those years.
Details of water rate recommendations are presented in Section II of this report.
THE REED GROUP, INC. PAGE 2
Exhibit 1-1
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
0
r
0
d
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Jan.2013)
(Jan.2014)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019
Rate Increase -->
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
29.90
$
30.65
$
31.57
$
32.52
$
33.50
$
34.51
$
35.55
2 Bedroom
$
35.91
$
36.81
$
37.91
$
39.05
$
40.22
$
41.43
$
42.67
3 Bedroom
$
43.04
$
44.12
$
45.44
$
46.80
$
48.20
$
49.65
$
51.14
4 Bedroom
$
51.72
$
53.01
$
54.60
$
56.24
$
57.93
$
59.67
$
61.46
5 Bedroom
$
62.03
$
63.58
$
65.49
$
67.45
$
69.47
$
71.55
$
73.70
6 Bedroom
$
74.44
$
76.30
$
78.59
$
80.95
$
83.38
$
85.88
$
88.46
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
2 Bedroom
$
30.79
$
31.56
$
32.51
$
33.49
$
34.49
$
35.52
$
36.59
3 Bedroom
$
36.94
$
37.86
$
39.00
$
40.17
$
41.38
$
42.62
$
43.90
4 Bedroom
$
44.32
$
45.43
$
46.79
$
48.19
$
49.64
$
51.13
$
52.66
Mobile Homes
Any Size
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
Non -Residential
Existing unmetered
Varies
+2.5%
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
0
r
0
d
Exhibit 1-2
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Jan. 2013
Jan. 2014
Jan. 2014)
(Jan.2015)
(Jan. 2016
Jan. 2017
Jan. 2018
Jan. 2019
Rate Increase -->
2.5%(2)
3
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
69.63
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
119.79
$
122.78
$
114.71
$
109.84
$
101.52
$
104.57
$
107.71
$
110.94
Multi -Family and Non -Residential
(1)
3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
64.28
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
75.27
$
77.15
$
84.29
$
94.17
$
101.52
$
104.57
$
107.71
$
110.94
3" meter
$
105.38
$
108.01
$
132.74
$
162.18
$
187.65
$
193.28
$
199.08
$
205.05
4" meter
$
135.51
$
138.90
$
193.14
$
254.80
$
310.67
$
319.99
$
329.59
$
339.48
6" meter
$
195.68
$
200.57
$
333.69
$
480.82
$
617.94
$
636.48
$
655.57
$
675.24
8" meter
$
255.91
$
262.31
$
494.23
$
747.94
$
986.82
$
1,016.42
$
1,046.91
$
1,078.32
10" meter
$
316.01
$
323.91
$
674.61
$
1,056.08
$
1,417.30
$
1,459.82
$
1,503.61
$
1,548.72
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.97
$
0.96
$
0.99
$
1.02
$
1.05
Tier (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.33
$
1.27
$
1.31
$
1.35
$
1.39
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.70
$
1.59
$
1.64
$
1.69
$
1.74
Multi -Family and Non -Residential
(1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.09
$
1.14
$
1.17
$
1.21
$
1.25
Notes
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
PROPOSED WASTEWATER RATES
Proposed flat (unmetered) wastewater rates are presented in Exhibit I-3, and proposed
usage -based (metered) wastewater rates are presented in Exhibit I-4. Both of these rate
schedules reflect 3.0 percent increases each July from 2014 through 2018 (reflecting the
maximum allowed under the proposed indexing criteria). Similar to flat water rates, no
changes to the structure of flat wastewater rates are proposed, as they will be phased out in
upcoming years.
In 2010, the City developed usage -based wastewater rates for single family customers.
In July 2012, the City transitioned about 2,940 single family customers to the usage -based
wastewater rates, expects to transition an additional 3,700 in July 2014, and will continue
each year with more. However, usage -based wastewater rates for other customer classes
are not currently available. The usage -based wastewater rates proposed herein include
fixed monthly service charges and volumetric rates for all customer classes. While the rate
schedule includes usage -based rates for non-residential uses, the City plans to focus on
transitioning single family and multi -family residential customer to usage -based rates, and
then transition non-residential customers. Rate structure transition issues are discussed in
greater in Section III of this report. Additional refinements to the rate structure will be
required as the City gains data and experience with the usage -based rates, as well as
categorizes non-residential customers into appropriate strength classifications.
Details of wastewater rate recommendations are presented in Section III of this report.
ANNUAL ADJUSTMENTS TO WATER AND WASTEWATER RATES
Government Code Section 53756 authorizes the City to adopt a mechanism for
adjusting water and wastewater rates to offset the affects of inflation for up to five years.
Consistent with past practices, it is recommended that, in approving the proposed rates,
the City also approve annual adjustments to water rates beginning in January 2015 and to
wastewater rates beginning in July 2014 by the annual change in the Engineering News
Record's 20 -Cities Construction Cost Index (ENR), subject to a 3 percent annual cap. These
annual rate adjustments would also be subject to annual review by staff to confirm need
and concurrence by the City Council. In accordance with Section 53756, customers should
be informed of the changes in the rate schedules at least 30 days prior to their
implementation. This can be achieved through a bill insert, or other means.
Water and wastewater rate schedules presented in Exhibits 1-1 through I-4 reflect the
maximum 3.0 percent potential adjustment to the rates each year (January 2015 through
January 2019 for water rates and July 2014 through July 2018 for wastewater). These
schedules, therefore, reflect the "ceiling' for the rates at any time during this five-year
period. Actual annual rate adjustments would be based on the actual change in the ENR
index (subject to a 3.0 percent cap), financial need, and concurrence by the City Council.
As the City continues to transition customers from flat water and wastewater rates to
usage -based rates there is some uncertainty as to the affect it may have on revenues.
Therefore, it is important for the City to continue to monitor water usage characteristics
and rate revenues for both utilities on an annual basis.
THE REED GROUP, INC. PAGE 5
Exhibit 1-3
City of Lodi
Current and Proposed Flat Wastewater Rates
Notes:
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU.
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Jul. 2013
Jul.
2014
Jul.
2015
Jul.
2016
Jul.
2017
Jul.
2018
Rate Increase -->
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
5 Bedroom
$
60.27
$
62.08
$
63.94
$
65.86
$
67.84
$
69.88
6 Bedroom
$
68.88
$
70.95
$
73.08
$
75.27
$
77.53
$
79.86
7 Bedroom
$
77.49
$
79.81
$
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments,
and Condominiums
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
Mobile Homes
Any Size
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
Non -Residential (1)
Per SSU
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
Notes:
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU.
Exhibit 1-4
City of Lodi
Current and Proposed Usa a -Based Wastewater Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Jul. 2013
Jul. 2014
Jul.
2015
Jul.
2016
Jul.
2017
Jul.
2018
Rate Increase -->
3.0%
3.0%
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$ 23.52
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
Multi -Family and Non -Residential
(1)
3/4" meter
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
1" meter
$
38.83
$
39.99
$
41.19
$
42.43
$
43.70
1 1/2" meter
$
75.03
$
77.28
$
79.60
$
81.99
$
84.45
2" meter
$
118.63
$
122.19
$
125.86
$
129.64
$
133.53
3" meter
$
220.45
$
227.06
$
233.87
$
240.89
$
248.12
4" meter
$
365.88
$
376.86
$
388.17
$
399.82
$
411.81
6" meter
$
729.12
$
750.99
$
773.52
$
796.73
$
820.63
8" meter
$
1,165.18
$
1,200.14
$
1,236.14
$
1,273.22
$
1,311.42
Usage Rates ($ICCF)
Single Family (2)
$ 2.68
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Multi -Family (2)
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Non -Residential (2) (3)
Low Strength
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Medium Strength
$
3.45
$
3.55
$
3.66
$
3.77
$
3.88
High Strength
$
4.49
$
4.62
$
4.76
$
4.90
$
5.05
Industrial (4)
Flow (per MG annually)
$ 3,487.41
$
3,592.03
$
3,699.79
$
3,810.78
$
3,925.10
$
4,042.85
BOD (per 1,000 lbs annually)
$ 575.51
$
592.78
$
610.56
$
628.88
$
647.75
$
667.18
SS (per 1,000 lbs annually)
$ 359.85
$
370.65
$
381.77
$
393.22
$
405.02
$
417.17
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
AFFECT OF PROPOSED RATES ON CUSTOMER BILLS
Flat water rates are proposed to increase by 2.5 percent in January 2014 and flat
wastewater rates are proposed be adjusted by no more than 3 percent in July 2014 to meet
anticipated revenue needs of the utilities. No structural changes are proposed for flat rates.
Customers subject to flat rates will therefore see a 2.5 percent change in their monthly
water bills, and no more than a 3 percent change in their monthly wastewater bills.
Rate structure changes are proposed for usage -based water rates, which will result in
smaller or larger changes in bill amounts for affected customers. In general, single family
residential customers will benefit from the change, and non-residential customers will, in
most but not all cases, see bill increases in excess of 2.5 percent. The proposed rate
structure changes, as described in Section II of this report, are intended to improve the
equity between the customer classes in the charges for water service.
Multi -family customers, including mobile homes parks, will soon begin to be
transitioned to usage -based rates. While usage -based billing may result in the City shifting
billing from tenants to property owners, the total charges for water service within most
apartment complexes and mobile home parks, as well as duplexes, triplexes, and
fourplexes, are likely to be significantly lower if billed to property owners with usage -
based rates compared with cumulative flat rate billing to the tenants.
With the exception of the transitioning single family residential customers from flat
wastewater rates to usage -based wastewater rates, other wastewater customers will
continue to be billed on flat rates until at least July 2015. Usage -based wastewater rates are
based on winter water usage for each account, and non-residential customers will be
assigned to low, medium, or high strength categories, depending on the type of business.
When the transition does occur, multi -family residential customers will likely benefit from
usage -based rates. Additional analysis is required to assess the potential implications of
usage -based rates for non-residential customers, and further refinements to wastewater
rates will be required in the years ahead as more data and analyses become available.
Exhibit I-5 summarizes the affect of proposed water rates (effective January 2014) and
proposed wastewater rates (effective July 2014) on monthly bills for a sampling of
residential customers. Both flat rates and usage -based rate examples are presented, as well
as changes in combined water and wastewater bills.
Exhibit I-6 summarizes the affect of proposed water rates (effective January 2014) and
proposed wastewater rates (effective July 2014) on average monthly bills for a sampling of
non-residential customers. In all cases, non-residential customers shown are subject to
usage -based water rates and flat wastewater rates during this period.
Bill water amounts under proposed rates in Exhibits I-5 and I-6 reflect both the 2.5
percent overall rate increase, as well as the first step in the rate restructuring for usage
based water rates. Additional details on the water and wastewater rates and related
analyses are presented in Sections II and III, respectively, of this report.
THE REED GROUP, INC. PAGE 8
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit I-5
City of Lodi
Water Bills for Sample of Residential Customers
Wastewater Bills for Sample of Residential Customers
Monthly Wastewater Bill
Monthly Water Bill
Change
Change
Winter
Water
Current
Current
Proposed
Proposed
Wtr. Use
Use
Rates
Rates
Rates
Rates
Single Family Residential
(CCF)
CCF)
(Jan.2013)
2014)
(Jan. 2014
$s
$s
%
Single Family Residential
72.28
$
1.93
2.7%
Flat Rate - 3 Bdrm Home
$
86.09
Flat Rate - 2 Bdrm Home
Flat Rate - 2 Bdrm Home
n/a
$
35.91
$
36.81
$
0.90
2.5%
Flat Rate - 3 Bdrm Home
n/a
$
43.04
$
44.12
$
1.08
2.5%
Mtr'd Rate - Low Usage
9
$
32.06
$
31.72
$
(0.34)
-1.1%
Mtr'd Rate - Median Usage
16
$
41.26
$
40.76
$
(0.50)
-1.2%
Mtr'd Rate - High Usage
32
$
63.34
$
62.36
$
(0.98)
-1.5%
Muti-Family Residential (1)
130.46
$
127.65
$
(2.81)
-2.2%
Fourplex w/ 1" Wtr. Mtr.
Flat Rate - 2 Bdrm Apartment
Flat Rate - 2 Bdrm Apartment
n/a
$
30.79
$
31.56
$
0.77
2.5%
Duplex w/ 3/4" Mtr.
36
$
61.58
$
59.26
$
(2.32)
-3.8%
Fourplex w/ 1" Wtr. Mtr.
60
$
123.16
$
97.38
$
(25.78)
-20.9%
12 Unit Apartment w/ 1 1/2" Mtr.
150
$
369.48
$
212.08
$
(157.40)
-42.6%
80 Unit Apartment w/ 4" Mtr.
720
$
2,463.20
$
913.14
$ (1,550.06)
-38.6%
-62.9%
40 Unit MH Park w/ 2" Mtr.
250
$
1,026.80
$
334.29
$
(692.51)
-67.4%
Wastewater Bills for Sample of Residential Customers
Combined Water and Wastewater Bills for Sample of Residential Customers
Monthly Wastewater Bill
Change
Winter
Current
Current
Proposed
Proposed
Wtr. Use
Rates
Rates
o/a
Single Family Residential
(CCF)
(Jul. 2013)
(Jul.
2014)
$s
$
Single Family Residential
$
72.28
$
1.93
2.7%
Flat Rate - 3 Bdrm Home
$
86.09
Flat Rate - 2 Bdrm Home
n/a
$
34.44
$
35.47
$
1.03
3.0%
Flat Rate - 3 Bdrm Home
n/a
$
43.05
$
44.34
$
1.29
3.0%
Mtr'd Rate - Low Usage
6
$
39.60
$
40.79
$
1.19
3.0%
Mtr'd Rate - Median Usage
9
$
47.64
$
49.07
$
1.43
3.0%
Mtr'd Rate - High Usage
12
$
55.68
$
57.35
$
1.67
3.0%
Muff -Family Residential (1)
$
130.46
$
127.65
$
(2.81)
-2.2%
Fourplex w/ 1" Wtr. Mtr.
Flat Rate - 2 Bdrm Apartment
n/a
$
34.44
$
35.47
$
1.03
3.0%
Duplex w/ 3/4" Mtr.
16
$
68.88
$
68.39
$
(0.49)
-0.7%
Fourplex w/ 1" Wtr. Mtr.
28
$
137.76
$
116.11
$
(21.65)
-15.7%
12 Unit Apartment w/ 1 1/2" Mtr.
72
$
413.28
$
273.75
$
(139.53)
-33.8%
80 Unit Apartment w/ 4" Mtr.
480
$
2,755.20
$
1,690.68
$ (1,064.52)
-38.6%
40 Unit MH Park w/ 2" Mtr.
180
$
1,033.20
$
615.43
$
(417.77)
-40.4%
Combined Water and Wastewater Bills for Sample of Residential Customers
Notes:
(1) Current bill amounts for multi -family examples are all based on flat rates, and assume
two bedroom dwelling units. Proposed bill amounts are based on metered rates, except
where noted.
THE REED GROUP, INC. PAGE 9
Monthly Wtr/WW Bill
Change
Current
Proposed
Rates
Rates
$s
o/a
Single Family Residential
Flat Rate - 2 Bdrm Home
$
70.35
$
72.28
$
1.93
2.7%
Flat Rate - 3 Bdrm Home
$
86.09
$
88.46
$
2.37
2.8%
Mtr'd Rate - Low Usage
$
71.66
$
72.51
$
0.85
1.2%
Mtr'd Rate - Median Usage
$
88.90
$
89.83
$
0.93
1.0%
Mtr'd Rate - High Usage
$
119.02
$
119.71
$
0.69
0.6%
Muti-Family Residential (1)
Flat Rate - 2 Bdrm Apartment
$
65.23
$
67.03
$
1.80
2.8%
Duplex w/ 3/4" Mtr.
$
130.46
$
127.65
$
(2.81)
-2.2%
Fourplex w/ 1" Wtr. Mtr.
$
260.92
$
213.49
$
(47.43)
-18.2%
12 Unit Apartment w/ 1 1/2" Mtr.
$
782.76
$
485.83
$
(296.93)
-37.9%
80 Unit Apartment w/ 4" Mtr.
$
5,218.40
$
2,603.82
$ (2,614.58)
-50.1%
40 Unit MH Park w/ 2" Mtr.
$
2,060.00
$
949.72
$ (1,110.28)
-53.9%
Notes:
(1) Current bill amounts for multi -family examples are all based on flat rates, and assume
two bedroom dwelling units. Proposed bill amounts are based on metered rates, except
where noted.
THE REED GROUP, INC. PAGE 9
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit I-6
City of Lodi
Water Bills for Sample of Non -Residential Customers
Wastewater Bills for Sample of Non -Residential Customers
Monthly Wtr/WW Bill
Monthly Water Bill
Change
Change
Water
Current
Proposed
Rates
Use
Rates
Rates
$s
Rates
Retail Store
$
190.21
$
(CCF)
(Jan. 2013)
(Jan. 2014)
(Jul. 2014)
$s
$s
Retail Store (w/ 1" mtr.)
48
$
82.76
$
85.38
$
2.62
3.2%
Small Motel (w/ 1" mtr.)
120
$
149.00
$
157.38
$
8.38
5.6%
Restaurant (w/ 1 1/2" mtr.)
160
$
207.59
$
222.25
$
14.65
7.1%
Small Manufacturer (w/ 2" mtr.)
169
$
230.75
$
253.29
$
22.54
9.8%
Grocery Store (w/ 2 mtrs.)
518
$
611.76
$
664.04
$
52.27
8.5%
Big Box Retail (w/ 2 mtrs.)
541
$
633.48
$
687.64
$
54.16
8.5%
Large Retail Store (w/ 2" mtr.)
739
$
815.16
$
931.89
$
116.73
14.3%
Large Office Bldg. (w/ 4" mtr.)
704
$
783.11
$
897.06
$
113.94
14.6%
High School (w/ 3 mtrs.)
2,268
$
2,441.57
$
2,818.13
$
376.56
15.4%
Hospital (w/ 6 mtrs.)
2,963
$
3,505.27
$
4,067.37
$
562.10
16.0%
Indus. Food Processor (w/ 4 mtrs.)
6,025
$
5,973.20
$
6,659.34
$
686.14
11.5%
Indus. Food Processor (w/ 6 mtrs.)
8,565
$
8,376.22
$
9,156.93
$
780.71
9.3%
Wastewater Bills for Sample of Non -Residential Customers
Combined Water and Wastewater Bills for Sample of Non -Residential Customers
Monthly Wtr/WW Bill
Monthly Wastewater Bill
Change
Change
WW
Current
Proposed
Rates
Use
Rates
Rates
$s
Rates
Retail Store
$
190.21
$
(SSUs(Jul.
$
2013)
(Jul. 2014)
Small Motel
$s
%
Retail Store
3.12
$
107.45
$
110.67
$
3.21
3.0%
Small Motel
4.00
$
137.76
$
141.88
$
4.12
3.0%
Restaurant
14.00
$
482.16
$
496.58
$
14.42
3.0%
Small Manufacturer
22.85
$
786.95
$
810.49
$
23.54
3.0%
Grocery Store
25.00
$
861.00
$
886.75
$
25.75
3.0%
Big Box Retail
36.08
$
1,242.60
$
1,279.76
$
37.16
3.0%
Large Retail Store
13.98
$
481.47
$
495.87
$
14.40
3.0%
Large Office Building
92.63
$
3,190.18
$
3,285.59
$
95.41
3.0%
High School
133.93
$
4,612.55
$
4,750.50
$
137.95
3.0%
Hospital
48.56
$
1,672.41
$
1,722.42
$
50.02
3.0%
Industrial Food Processor
639.67
$
22,030.23
$
22,689.09
$
658.86
3.0%
Industrial Food Processor
1,258.06
$
43,327.59
$
44,623.39
$
1,295.80
3.0%
Combined Water and Wastewater Bills for Sample of Non -Residential Customers
THE REED GROUP, INC. PAGE 10
Monthly Wtr/WW Bill
Change
Current
Proposed
Rates
Rates
$s
Retail Store
$
190.21
$
196.05
$
5.83
3.1%
Small Motel
$
286.76
$
299.26
$
12.50
4.4%
Restaurant
$
689.75
$
718.83
$
29.07
4.2%
Small Manufacturer
$
1,017.70
$
1,063.78
$
46.08
4.5%
Grocery Store
$
1,472.76
$
1,550.79
$
78.02
5.3%
Big Box Retail
$
1,876.07
$
1,967.39
$
91.32
4.9%
Large Retail Store
$
1,296.63
$
1,427.76
$
131.13
10.1%
Large Office Building
$
3,973.29
$
4,182.64
$
209.35
5.3%
High School
$
7,054.12
$
7,568.63
$
514.51
7.3%
Hospital
$
5,177.68
$
5,789.79
$
612.11
11.8%
Industrial Food Processor
$
28,003.44
$
29,348.44
$
1,345.00
4.8%
Industrial Food Processor
$
51,703.80
$
53,780.32
$
2,076.52
4.0%
THE REED GROUP, INC. PAGE 10
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
SECTION II. WATER RATES
This section of the report describes water rate recommendations for the City's water
utility. The City's multi-year financial plan was used to determine annual water rate
revenue requirements, and to develop the strategy for meeting current and future financial
obligations. The annual rate revenue requirement is the amount of revenue needed from
water rates to cover estimated operating, maintenance, debt service, and capital program
costs with consideration of other revenues and financial reserves.
Water rate recommendations are also intended to assist the City in the transition to a
fully metered water system and universal usage -based water rates. Rate structure changes
are intended to improve equity across customer classes by better reflecting the cost of
providing service.
CURRENT WATER RATES
The City's current water rates are summarized in Exhibit II -1. Water rates were last
adjusted in January 2013 with a 2.5 percent across-the-board increase based on changes in
the Engineering New Record's 20 -Cities Construction Cost Index (ENR). This index is used
by the City to annually adjust the level of water and wastewater rates.
Exhibit 1-1
City of Lodi
Current Monthly Water Rates
FLAT RATES
USAGE -BASED RATES
Single Family Residential
Single Family Residential
1 Bedroom
$
29.90
Monthly Service Charges
Usage Rates ($/CCF)
2 Bedroom
$
35.91
3/4" meter $ 23.78
Tier 1 (0-10 CCF)
$ 0.92
3 Bedroom
$
43.04
1" meter $ 38.60
Tier 2 (11-50 CCF)
$ 1.38
4 Bedroom
$
51.72
1 1/2" meter $ 75.42
Tier 3 (>50 CCF)
$ 1.82
5 Bedroom
$
62.03
2" meter $ 119.79
6 Bedroom
$
74.44
7 Bedroom
$
89.31
Multi -Family and Non -Residential
(1)
Multi -Family (1)
Monthly Service Charges
Usage Rates ($/CCF)
1 Bedroom
$
25.67
3/4" meter $ 23.78
All water usage
$ 0.92
2 Bedroom
$
30.79
1" meter $ 38.60
3 Bedroom
$
36.94
1 1/2" meter $ 60.24
4 Bedroom
$
44.32
2" meter $ 75.27
Mobile Homes
3" meter $ 105.38
Any Size
$
25.67
4" meter $ 135.51
Non -Residential
6" meter $ 195.68
Exist. unmetered
Varies
8" meter $ 255.91
10" meter $ 316.01
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
THE REED GROUP, INC. PAGE 11
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Residential flat rates are based on the number of bedrooms in each dwelling, and are
based on water usage estimates made prior to the availability of water usage data. All flat
rates will be phased out as the installation of water meters is completed. Water usage rates
include a fixed monthly service charge, based on size of the water meter, and volumetric
charges based on a customer's actual water usage. Single family customers are subject to a
three-tier rate structure, which includes a lower initial rate intended for non -discretionary
uses of water and higher rates for discretionary uses intended to provide an incentive to
conserve water. Multi -family and non-residential customers are subject to a uniform water
usage rate.
At present, tenants of multi -family apartments and mobile home parks are billed for
water and wastewater services. As water meters are installed for apartment complexes
and mobile home parks the billing for these services may be transferred from tenants to
property owners.
CUSTOMER BASE AND WATER USAGE DATA
The water utility's customer base is predominately comprised of single family and
multi -family residential customers, along with commercial, industrial, and municipal
customers. Some non-residential customers, including food-processing facilities, use very
large quantities of water. Because the City is not entirely metered total water usage must
be estimated. Exhibit II -2 summarizes customer account and water usage estimates
derived from the City's utility billing system for 2012. With residential accounts
expressed as the number of dwelling units, the water utility customer base is nearly 23,600
accounts and estimated annual water usage is about 16,233 acre-feet (AF). Single family
accounts represent 70 percent of the customers and 58 percent of the water usage. Multi-
family accounts represent 24 percent of the customers and 14 percent of the water usage.
Non-residential accounts comprise about 6 percent of the customer base, and also
represent about 27 percent of annual water usage. The City's largest water users include
several industrial customers (primarily food-processing), as well as the City of Lodi, and
the Lodi Unified School District.
By January 2014, more than one-half of the City's single family residential customers
will be on usage -based water rates, with two- to three -thousand single family customers
transitioning to usage -based rates each year. All single family customers are expected to
be transitioned to usage -based water rates by 2019. The installation of water meters for all
customers is expected to be completed by 2018. About 75 percent of non-residential
customers are metered and have been on usage -based water rates. The City plans to
transition mobile home parks to usage -based rate in 2014, the remaining non-residential
accounts by 2017, and multi -family accounts by 2020.
THE REED GROUP, INC. PAGE 12
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit II -2
City of Lodi
Summary of Water Utility Customer Accounts and Annual Water Usage (1)
Customer Accounts (2)
■ Single Family
■ Multi -Family
1,434 . Non -Residential
Est. Annual Water Usage (AF) (3)
■ Single Family
4,455 • Multi -Family
m Non -Residential
Notes:
(1) Derived from the City's utility billing system from data for 2012.
(2) Total customer accounts equals 23,596. Residential accounts expressed in dwelling units.
(3) Total estimated annual water usage equals 16,233 acre-feet (AF).
ANNUAL WATER REVENUE RATE REQUIREMENT
The City has updated its multi-year financial model with actual revenues and expenses
(pre -audit) for FY 12-13 and the approved budget for FY 13-14. Based on that model, the
City estimates an annual water rate increase of 2.5 percent in January 2014 followed by
annual water rate increases of no more than 3 percent per year thereafter. These rate
increases are believed to be sufficient to meet the utility's operating and maintenance costs,
debt service obligations, and capital program needs through FY 19-20.
The City adjusts its water rates in January of each year based on the annual change in
the ENR, subject to a 3.0 percent cap and concurrence by the City Council. Based on the
current ENR and staff's analysis of financial need, the rate analyses presented herein are
based on a 2.5 percent increase effective in January 2014. This is consistent with the City's
updated financial plan model.
The City anticipates approximately 2,350 additional single family residential customers
will be converted to usage -based rates in January 2014. With that shift, and an overall 2.5
percent rate increase, water rate revenues from flat and usage based customers is estimated
to be $12,931,000, as summarized below
Flat rate revenue $5,781,000
Usage -based rate revenue $7,150,000
Total 2014 water rate revenue $12,931,000
No changes are proposed to the City's flat water rate structure. Therefore, a 2.5 percent
rate increase will mean a 2.5 percent increase to all flat water rates. With a transition of
approximately 2,350 additional single family customers to water meters in January 2014
THE REED GROUP, INC. PAGE 13
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
the water utility will be billing nearly 8,400 customer accounts through usage -based water
rates. The annual water rate revenue requirement for the City's usage -based water rates
will be $7,150,000 for 2014, with this increased portion of the customer base on usage -based
rates. This is the revenue requirement used for the calculation of usage -based water rates.
COST OF SERVICE ANALYSIS AND RATE DESIGN
The annual water rate revenue requirement of $12,931,000 for 2014 has been split
between flat and usage -based rates based on the number of accounts and water use
characteristics of the customer base within each group. The cost of service analysis for
each group is separately presented below.
Flat Rate Cost of Service Analysis
As the City will be phasing out the system of flat water rates in the next few years, no
changes to the rate structure are proposed. The City's flat rates are based on the number of
bedrooms in each single family and multi -family dwelling unit. Non-residential flat rate
accounts have each been assigned a unique single family equivalency factor, based on
estimated usage characteristics, relative to single family homes.
Exhibit II -3 summarizes the distribution of the 2014 revenue requirement for flat rate
accounts of various customer types, and shows the calculation of the monthly flat water
rates. Monthly flat water rates are proposed to increase by 2.5 percent in January 2014.
Usage -Based Rate Cost of Service Analysis
A more detailed cost of service analysis was prepared for the City's usage -based water
rates. The analysis was based on the number and type of customers that will be subject to
these rates in 2014.
Once the 2014 usage -based revenue requirement of $7,150,000 was determined, the
next step in the rate setting process is to evaluate the cost of providing service. Water rate
calculations contained herein are intended to generate the level of revenue commensurate
with the revenue requirement for usage -based customers. The manner in which each
customer is responsible for the water utility's costs is the subject of the cost of service
analysis.
The water utility incurs certain types of costs associated with making water service
available to customers. Other costs are incurred as a direct result of customer water usage.
The cost of service analysis is intended to allocate the costs of providing water service to
customers in proportion to customers' water demands and service requirements. There are
many approaches to cost of service analysis; some are more complex than others. The
approach used herein is commensurate with the data available, the distinctions currently
made between various types of customers, and the requirement to fairly and to reasonably
reflect the differences in service provisions to different customers.
THE REED GROUP, INC. PAGE 14
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit II -3
City of Loda
2014 Flat Water Rate Cost of Service Analvsis and Rate Calculation
No. of Accts.
Customer Group or DUs (1)
Equivalency
Factor (2)
Single Family
Equivalents
(3)
% of
Total
Alloc. of
Revenue
R mt.
Monthly Flat
Water Rate
Single Family Residential
1 Bedroom
549
0.83
458
3.5%
$
201,900
$
30.65
2 Bedroom
3,908
1.00
3,908
29.9%
$
1,726,500
$
36.81
3 Bedroom
2,787
1.20
3,344
25.5%
$
1,476,000
$
44.12
4 Bedroom
288
1.44
415
3.2%
$
183,200
$
53.01
5 Bedroom
23
1.73
40
0.3%
$
17,500
$
63.58
6 Bedroom
1
2.07
2
0.0%
$
900
$
76.30
Multi -Family Residential
1 Bedroom
2,177
0.71
1,556
11.9%
$
687,300
$
26.31
2 Bedroom
3,311
0.86
2,839
21.7%
$
1,253,900
$
31.56
3 Bedroom
129
1.03
133
1.0%
$
58,600
$
37.86
4 Bedroom
2
1.23
2
0.0%
$
1,100
$
45.43
Non -Residential
Various
271
Varies
394
3.0%
$
174,100
Varies (4)
Totals
13,446
13,091
$
5,781,000
Notes:
(1) Estimate based on transition of about 2,350 additional single family accounts to usage -based billing.
(2) From existing flat water rate structure.
(3) Based on one single family equivalent equal to a 2 -bedroom home.
(4) All non-residential flat rates increase by 2.5 percent.
The cost allocation methodology used herein begins by assigning all costs to one of
three categories. The cost allocation process considers the level of detail available in the
City's financial structure, as well as professional judgment and experience. The three
categories include:
• Customer costs, such as meter reading, billing, and customer service, are fixed
costs that tend to vary as a function of the number of customer being served.
Customer costs are allocated to customers based on the number of accounts.
That is, every customer will pay an equal share of customer -related costs.
• Capacity costs are also fixed costs, however, these tend to vary in relation to the
capacity of the water system. Customers that place (or can place) a greater or
lesser burden on the capacity of the water system should bear greater or lesser
shares of these costs. The sizing of the water system is based on the potential
demand that each customer could place on the water system. Capacity costs are
allocated to customers based on the size (hydraulic capacity) of the water meter.
The hydraulic capacity reflects the potential demand that a customer could
place on the water system at any given time. A customer with a large meter
will be assigned a larger share of fixed capacity -related costs than one with a
small meter. Capacity costs include costs associated with the water system's
capacity including contributions to the capital program, debt service,
maintenance costs, etc.
THE REED GROUP, INC. PAGE 15
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
• Commodity costs are variable costs that vary with the amount of actual water
use. Water purchases, energy costs, and chemical costs are primary examples.
However, because certain fixed costs are reasonably assigned to customers on
the basis of usage (e.g., water treatment staff -related costs), some fixed costs are
frequently included in the commodity component. Recovering a portion of
fixed costs on the basis of actual water usage has the added benefit for
increasing the water conservation incentive reflected in the water rates.
The water conservation best management practice for water rates (BMP 1.4), as
promulgated by the California Urban Water Conservation Council (CUWCC) specifies that
at least 70 percent of water rate revenue be generated through water usage charges. While
the City is not subject to the CUWCC's requirements, such an approach also provides
customers with added ability to affect the amount of their water bill by managing water
usage. The allocation of costs, as well as the resulting rate calculations, reflects a balanced
approach to considering different rate -setting objectives. Based on a review of water
system financial information, the cost allocation resulted in a distribution of the costs to
customer, capacity, and commodity components of 5 percent, 40 percent, and 55 percent,
respectively.
Exhibit II4 shows how the usage -based revenue requirement is allocated to cost
components, as well as the resulting determination of water rates. Usage -based water rates
include a fixed monthly service charge, to recover customer and capacity costs, and water
usage rates, to recover commodity costs.
The monthly service charges are calculated by allocating customer costs equally across
all customer accounts and by allocating capacity related costs in proportion to meter
capacity. As a result, monthly service charges increase with increasing meter sizes. While
the current monthly service charges also vary with meter size the variation across meter
sizes does not fully reflect the capacity relationship across meter sizes. With the correct
capacity factors applied monthly service charges for the smaller meter sizes decrease while
the charges for larger meters increase. The increase is greatest for the largest meter sizes
but is, nevertheless, consistent with cost of service principles and the capacity relationship.
The City's water rate structure includes a uniform water usage rate for multi -family
and non-residential customers. The uniform water rate is calculated simply by dividing
the commodity costs by the total water sales volume.
In 2009, the City implemented a three-tier water rate structure for single family
customers. The tier structure provides a lower cost for initial water usage, estimated to
reflect indoor water needs that tend to be non -discretionary, and higher costs for more
discretionary uses of water. It also serves as a water conservation incentive. The City
obtains its water supply from both groundwater and surface water purchased from the
Woodbridge Irrigation District. The first tier rate generally reflects the cost of groundwater
production (as well as other commodity costs recovered through the usage rates), and the
third tier rate generally reflects the cost of purchasing and treating surface water (as well as
other commodity costs recovered through the usage rates).
THE REED GROUP, INC. PAGE 16
Exhibit II -4
City of Lode
2014 Usaae-Based Water Rate Cost of Service Analvsis and Rate Calculation
a
L7
tTjN
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O
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Meter Size
3/4"
V
1 1/2"
2"
3"
4"
6"
8"
10"
Total
No. of Accounts
Single Family
8,392
1
2
8,395
Multi -Family
14
14
Comm./Industrial
450
133
143
274
51
43
14
1
1,109
Municipal
2
7
7
17
6
10
1
50
Outside City
1
1
2
4
Total
8,858
141
152
292
57
54
15
2
1
9,572
Hydr. Cap. Factor
1.00
1.67
3.33
5.33
10.00
16.67
33.33
53.33
76.67
No. of 3/4" Equiv. Meters
8,858
235
506
1,556
570
900
500
107
77
13,310
Monthly Service Charges
Customer Cost
$ 3.11
$ 3.11
$
3.11
$ 3.11 $
3.11
$
3.11
$ 3.11
$ 3.11
$
3.11
Capacity Cost
$ 17.91
$ 29.90
$
59.63
$ 95.44 $
179.07
$
298.51
$ 596.83
$ 954.97
$
1,372.91
Monthly Service Chrg.
$ 21.02
$ 33.02
$
62.74
$ 98.56 $
182.18
$
301.62
$ 599.94
$ 958.08
$
1,376.02
Ann. Rev. ($1,OOOs)
$ 2,234,301
$ 55,864
$
114,441
$ 345,338 $
124,611
$
195,449
$ 107,990
$ 22,994
$
16,512
$
3,217,500
Water Usage Rates
Usage CF
Rate
Ann. Rev.
2014 Revenue Requirement
Single Family
$/CF
Customer Cost
$ 357,500
5.0%
Tier 1
0-1000 CF
45.4%
89,474,939
$
0.0093
$
828,551
Capacity Cost
$ 2,860,000
40.0%
Tier 2
1001-5000
CF
50.0%
98,680,437
$
0.0123
$
1,215,348
Commodity Cost
$ 3,932,500
55.0%
Tier 3
> 5000 CF
4.6%
9,062,070
$
0.0154
$
139,510
Total Rev. Reqmt.
$ 7,150,000
Multi -Family
615,451
$
0.0111
$
6,814
Comm./Ind.
139,380,294
$
0.0111
$
1,543,090
2.5%
Municipal
16,268,150
$
0.0111
$
180,106
Outside City
1,723,570
$
0.0111
$
19,082
355,204,911
$
3,932,500
a
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CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
At present, the uniform rate for multi -family and non-residential accounts is equal to
the first tier rate for single family customers. Equity is improved between the single
family, multi -family, and non-residential usage rates with the proposed rates because the
weighted average rate across the three single family tiers equals the uniform rate
applicable to multi -family and non-residential accounts.
PROPOSED WATER RATE SCHEDULES
Current and proposed water rate schedules for both flat rates and usage -based rates are
presented in Exhibits II -5 and II -6, respectively. All rates reflect an overall 2.5 percent
revenue increase relative to the current water rates. However, due to the changes in the
usage -based rate structure the change in customer water bills will vary, and will be a
function of customer class, meter size, and monthly water usage, as previously presented
in the section Usage -Based Rate Cost of Service Analysis (above). Illustrative examples of
customer bill impacts are included in Exhibits I-5 and I-6, earlier in the report.
Exhibit II -5
City of Lodi
Current and Proaosed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments,
and condominiums.
THE REED GROUP, INC. PAGE 18
Current
Jan.2013
Proposed
Jan.2014
Rate Increase -->
2.5%
FLAT RATES
Single Family Residential
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
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
2 Bedroom
$
30.79
$
31.56
3 Bedroom
$
36.94
$
37.86
4 Bedroom
$
44.32
$
45.43
Mobile Homes
Any size
$
25.67
$
26.31
Non -Residential
Existing unmetered
Varies
+2.5%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments,
and condominiums.
THE REED GROUP, INC. PAGE 18
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit II -6
City of Lodi
Current and Pronosed Usaae-Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) This rate schedule is revenue neutral relative to the newly indexed January 2014 water rates.
(3) These rate schedules are revenue neutral relative to 2014, and would be subject to annual inflationary
adjustments based on changes in the ENR.
Three -Year Transition for Usage -Based Rates
The proposed modifications to the usage -based water rate structure include changes
that may impact some non-residential customers (those with large meters and/or high
water usage) more dramatically than other customers. This is due to both the increased
monthly service charges for larger meter sizes, as well as the necessary increase in the
uniform water rate to bring it up from the single family first tier rate to the weighted
average across all tiers. (At present, nearly all multi -family accounts still pay for water
service under flat rates; therefore they will not directly be affected by the changes in the
usage -based rate structure.)
To ease the potential affects of the proposed new water rate structure, it is
recommended that the usage -based rate structure be phased in over a three-year period.
The rate schedule presented in Exhibit II -6 illustrates the transition. The rate schedules for
THE REED GROUP, INC. PAGE 19
Revenue Neutral 3 -Year Restructuring
Current
New Indexing
Proposed
Proposed
Proposed
Jan.2013
Jan. 2014)
(Jan.2014)
(Jan.
2015
Jan.
2016
Rate Increase -->
2.5%
2
3
3
USAGE -BASED RATES
Monthly Service Charge
Single Family
3/4" meter
$
23.78
$
24.37
$
23.26
$
22.14
$
21.02
1" meter
$
38.60
$
39.57
$
37.38
$
35.20
$
33.02
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
67.60
$
62.74
2" meter
$
119.79
$
122.78
$
114.71
$
106.64
$
98.56
Multi -Family and Non -Residential (1)
3/4" meter
$
23.78
$
24.37
$
23.26
$
22.14
$
21.02
1" meter
$
38.60
$
39.57
$
37.38
$
35.20
$
33.02
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
62.41
$
62.74
2" meter
$
75.27
$
77.15
$
84.29
$
91.43
$
98.56
3" meter
$
105.38
$
108.01
$
132.74
$
157.46
$
182.18
4" meter
$
135.51
$
138.90
$
193.14
$
247.38
$
301.62
6" meter
$
195.68
$
200.57
$
333.69
$
466.82
$
599.94
8" meter
$
255.91
$
262.31
$
494.23
$
726.16
$
958.08
10" meter
$
316.01
$
323.91
$
674.61
$
1,025.32
$
1,376.02
Mobile Homes
Any Size
$
23.78
$
24.37
$
23.26
$
22.14
$
21.02
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.94
$
0.93
Tier 2 (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.29
$
1.23
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.65
$
1.54
Multi -Family and Non -Residential (1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.06
$
1.11
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) This rate schedule is revenue neutral relative to the newly indexed January 2014 water rates.
(3) These rate schedules are revenue neutral relative to 2014, and would be subject to annual inflationary
adjustments based on changes in the ENR.
Three -Year Transition for Usage -Based Rates
The proposed modifications to the usage -based water rate structure include changes
that may impact some non-residential customers (those with large meters and/or high
water usage) more dramatically than other customers. This is due to both the increased
monthly service charges for larger meter sizes, as well as the necessary increase in the
uniform water rate to bring it up from the single family first tier rate to the weighted
average across all tiers. (At present, nearly all multi -family accounts still pay for water
service under flat rates; therefore they will not directly be affected by the changes in the
usage -based rate structure.)
To ease the potential affects of the proposed new water rate structure, it is
recommended that the usage -based rate structure be phased in over a three-year period.
The rate schedule presented in Exhibit II -6 illustrates the transition. The rate schedules for
THE REED GROUP, INC. PAGE 19
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
all three years are revenue neutral to each other (and reflect an overall 2.5 percent revenue
increase over the current rates). Therefore, in both 2015 and 2016 the rate schedules will
need to be adjusted to incorporate the inflationary adjustments to the rates, based on
changes in the ENR.
The usage -based water rate schedule presented in Exhibit I-2 reflect the proposed rate
structure phased implementation, as well as reflecting the maximum potential rate
adjustment of 3.0 percent per year, based on ENR indexing criteria.
METER INSTALLATION AND TRANSITION TO USAGE -BASED BILLING
The City continues to install water meters on all unmetered water service connections.
Below is a summary of the status of the metering program and plans to transition
customers from flat water rates to usage -based water rates. Each January an additional
batch of customers is transitioned to usage -based rates.
• Single Family - More than 50 percent of single family homes now have water
meters with two- to three -thousand additional meters installed each year. The
transition to usage -based rates is expected to be completed by January 2019.
• Mobile Home Parks - All mobile home parks have now been provided with
master water meters on the connections serving each park. The City plans to
convert all mobile home parks to usage -based water rates in the near future.
• Multi -Family - The City is currently installing water meters for apartment and
condominium complexes, and plans to complete these installations by 2018. All
multi -family accounts (including duplexes, triplexes, and fourplexes) are
expected to transition to usage -based water rates in January 2020. Similar to
mobile home parks, at that time, billing may also shift from tenant to property
owner.
• Non -Residential - At present, about 75 percent of non-residential accounts have
water meters and are subject to usage -based water rates. Remaining unmetered
accounts will be metered in the next few years, and the City expects to
implement usage -based rates on these accounts by January 2017. Non-
residential accounts include commercial, industrial, institutional, and dedicated
irrigation account types.
The transition from flat rates to usage -based rates may affect the total amount of
customers' water bills. Monthly bills may be higher in the summer during the irrigation
season, and lower in winter months when water demand is lower. For single family
customers many will have a decrease in their annual water cost with the transition to
usage -based rates, while others will have an overall increase. Multi -family customers will
generally benefit from the transition to usage -based water rates. As noted previously non-
residential customers may have larger water bills with the proposed rates.
THE REED GROUP, INC. PAGE 20
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
SECTION III: WASTEWATER RATES
This section of the report describes wastewater rate recommendations for the City's
wastewater utility. The City's multi-year financial plan was used to determine annual
wastewater rate revenue requirements, and to develop the strategy for meeting current
and future financial obligations. The annual rate revenue requirement is the amount of
revenue needed from wastewater rates to cover estimated operating, maintenance, debt
service, and capital program costs with consideration of other revenues and financial
reserves.
Wastewater rate recommendations are also intended to assist the City in the transition
to a fully metered water system and usage -based wastewater rates. Rate structure changes
are intended to improve equity across customer classes by better reflecting the cost of
providing service.
CURRENT WASTEWATER RATES
The City's current wastewater rates are summarized in Exhibit III -1. Wastewater rates
were last adjusted in July 2013 with a 2.5 percent across-the-board increase based on
changes in he Engineering New Record's 20 -Cities Construction Cost Index (ENR). This
index is used by the City to annually adjust the level of water and wastewater rates.
Residential flat rates are based on the number of bedrooms in each dwelling, and were
based on estimated sewer flows made prior to the availability of water usage data. Non-
residential wastewater rates are based on the number of sanitary sewer units (SSUs) for
each account, as determined by City staff. One SSU is equivalent to a two-bedroom single
family home. All flat wastewater rates will be phased out as the installation of water
meters is completed. Wastewater usage -based rates are currently available for single
family customers. They include a fixed monthly service charge for each dwelling unit, and
a usage charge based on a customer's winter water usage. Winter water usage is used for
sewer flow estimation since irrigation usage is minimized during this time period. The
City uses the average monthly water usage from December through February for
determining the average winter water use, and hence estimated monthly sewer flow.
The City has a small number of large industrial customers (primarily food processing).
Each of these customers pays for wastewater service based on actual wastewater flows and
loading characteristics. Industrial rates for users discharging into the City's domestic
sewer collection system are included in Exhibit III -1. Separate (lower) rates apply to the
few industrial users that discharge into the industrial line, which requires less treatment.
Those rates are outside of the scope of this study.
At present, tenants of multi -family apartments and mobile home parks are individually
billed for water and wastewater services. As water meters are installed for apartment
complexes and mobile home parks the billing for these services may be transferred from
tenants to property owners.
THE REED GROUP, INC. PAGE 21
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -1
City of Lodi
Current Monthly Wastewater Rates
FLAT RATES
USAGE -BASED RATES
Single Family Residential
Single Family Residential
1 Bedroom
$ 25.83
Monthly Service Charge
$ 23.52
2 Bedroom
$ 34.44
Usage Rate ($/CCF) (3)
$ 2.68
3 Bedroom
$ 43.05
4 Bedroom
$ 51.66
Multi -Family Residential
5 Bedroom
$ 60.27
Not Available
6 Bedroom
$ 68.88
7 Bedroom
$ 77.49
Non -Residential
Multi -Family Residential (1)
Not Available
1 Bedroom
$ 25.83
2 Bedroom
$ 34.44
Industrial (4)
3 Bedroom
$ 43.05
Flow (per MG)
$ 3,487.41
4 Bedroom
$ 51.66
BOD (per 1,000 lbs)
$ 575.51
Mobile Homes
SS (per 1,000 lbs)
$ 359.85
Any Size
$ 25.83
Non -Residential
Per SSU (2)
$ 34.44
Notes:
(1) Includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) The number of sanitary sewer units (SSUs) is determined for each customer
based on usage characterstics and factors adopted by the City.
(3) Usage charge based on winter water use determined as the average from
the prior December -February period. Adjusted each July for each account.
(4) Annual charges apply to industrial users discharging into the domestic sanitary
sewer system. Separate charges apply to discharges to the industrial line.
CUSTOMER BASE AND WASTEWATER FLOW ESTIMATES
Like the water utility, the wastewater utility's customer base is predominately
comprised of single family and multi -family residential customers, along with commercial,
industrial, and municipal customers. Some non-residential customers, including food-
processing facilities, generate very large quantities of wastewater. Because the City is not
entirely metered water usage and sewer flows must be estimated. It is fairly common to
use winter water usage data to estimate wastewater flows. During the winter irrigation
water use (which does not enter the wastewater system) is minimized.
Exhibit III -2 summarizes customer account and wastewater flow estimates derived
from the City's utility billing system for 2012. With residential accounts expressed as the
number of dwelling units, the wastewater utility customer base is about 23,600 accounts
and estimated annual wastewater flow is about 1,184 million gallons (MG). Single family
accounts represent 70 percent of the customers and 62 percent of the wastewater flow.
Multi -family accounts represent 22 percent of the customers and 12 percent of the
wastewater flow. Non-residential accounts, including commercial, industrial, and
THE REED GROUP, INC. PAGE 22
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
institutional, comprise about 8 percent of the customer base, and also represent about 23
percent of annual wastewater. There are eight large industrial customers (discharging to
the domestic system), and they generate about 3 percent of the annual wastewater flow.
The City's largest wastewater users include several of the industrial customers (primarily
food-processing), as well as the City of Lodi, and the Lodi Unified School District.
Exhibit III -2
City of Lodi
Summary of Wastewater Utility Customer Accounts and Annual Wastewater Flow (1)
Customer Accounts
■ Single Family
■ Multi -Family
Non -Residential
Est. Annual Wastewater Flow (MG)
■ Single Family
■ Multi -Family
w Non -Residential
58 ■ Industrial
Notes:
(1) Derived from the City's utility billing system from data for 2012.
(2) Total customer accounts equals 23,614. Residential accounts expressed in dwelling units.
(3) Total estimated annual wastewater flow equals 1,908 million gallons (MG).
In July 2012 the City moved an initial batch of single family residential customers
(about 2,940) to usage -based wastewater rates, as a pilot test of those wastewater rates.
Additional single family customers will be transitioned beginning in July 2014, with an
additional batch each July until all have been transitioned. By July 2020, all of the City's
single family residential customers will be on usage -based wastewater rates. The
transition of multi -family and non-residential wastewater customers to usage -based
wastewater rates will lag the transition to usage -based water rates. In the near term, the
focus will be on mobile home parks and school accounts. Non-residential customers will
need to be categorized into strength classifications (as described later in this section) before
the transition can be made.
ANNUAL WASTEWATER REVENUE RATE REQUIREMENT
The City updated its multi-year financial model with actual revenues and expenses
(pre -audit) for FY 12-13 and the approved budget for FY 13-14. Based on that model, the
City estimates annual wastewater rate increases of up to 3 percent per year may be
required. These increases are believed to be sufficient to meet the utility's operating and
maintenance costs, debt service obligations, and capital program needs through FY 19-20.
THE REED GROUP, INC. PAGE 23
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
The City adjusts its wastewater rates in July of each year, and the rate analyses
presented herein are based on a 3 percent increase effective in July 2014. This is consistent
with the City's financial plan model. The actual rate increase will be based on the change
in the ENR, but will be no more than 3 percent.
The City anticipates an additional 3,700 single family residential customers will be
converted to usage -based rates in July 2014. With that shift, and an overall 3 percent rate
increase, water rate revenues from flat and usage based customers is estimated to be
$14,570,000, as summarized below
Flat rate revenue $9,751,000
Usage -based rate revenue $4,461,000
Industrial line rate revenue $358,000
Total 2014 water rate revenue $14,570,000
No changes are proposed to the City's flat wastewater rate structure. Therefore, a 3
percent rate increase will mean a 3 percent increase to all flat wastewater rates. With a
transition of approximately 3,700 additional single family customers to usage -based rates
in July 2014 the wastewater utility will be billing nearly 6,650 customer accounts through
usage -based rates. The annual wastewater rate revenue requirement for the City's usage -
based wastewater rates will be $4,461,000 for FY 14-15, with this growing portion of the
single family residential customer base on usage -based rates. This $4,461,000 includes
$937,000 related to industrial users that discharge into the domestic collection system.
Industrial users on the industrial line are subject to a separate treatment process, and
different rates (outside of the scope of this study), and represent about $358,000 of the total
FY 14-15 wastewater rate revenue requirement.
COST OF SERVICE ANALYSIS AND RATE DESIGN
The annual wastewater rate revenue requirement of $14,570,000 for FY 14-15 has been
split between flat rates, usage -based rates, and industrial charges based on the number of
accounts and wastewater use characteristics of the customer base within each group. The
cost of service analysis for each group is separately presented below.
Flat Rate Cost of Service Analysis
As the City will be phasing out the system of flat wastewater rates in the next several
years, no changes to the rate structure are proposed. The City's flat rates are based on the
number of bedrooms in each single family and multi -family dwelling unit. Non-
residential flat rate accounts have each been assigned a unique sanitary sewer unit (SSU)
factor, based on estimated usage characteristics, relative to a 2 -bedroom single family
home.
Exhibit III -3 summarizes the distribution of the FY 14-15 revenue requirement for flat
rate accounts of various customer types, and shows the calculation of the monthly flat
wastewater rates with a 3 percent increase. Monthly flat water rates are proposed to
increase by no more than 3 percent in July 2014, with the actual adjustment dependent on
the annual change in the ENR, with a 3 percent cap.
THE REED GROUP, INC. PAGE 24
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -3
City of Loda
FY 14-15 Flat Wastewater Rate Cost of Service Analvsis and Rate Calculation
Customer Group
No. of
Accts. or
DUs (1)
SSU
Equivalency
Factor (2)
Sanitary
Sewer Units
(SSUs) (3)
% of
Total
Alloc. of
Revenue
R mt.
Monthly
Flat WW
Rate
Single Family Residential
1 Bedroom
378
0.75
284
1.2%
$
120,700
$
26.60
2 Bedroom
3,073
1.00
3,073
13.4%
$
1,308,000
$
35.47
3 Bedroom
5,531
1.25
6,914
30.2%
$
2,943,000
$
44.34
4 Bedroom
738
1.50
1,107
4.8%
$
471,200
$
53.21
5 Bedroom
89
1.75
156
0.7%
$
66,300
$
62.08
6 Bedroom
2
2.00
4
0.0%
$
1,700
$
70.95
7 Bedroom
1
2.25
2
0.0%
$
1,000
$
79.81
Duplexes, Triplexes, Fourplexes,
Apartments, and Condominiums
1 Bedroom
1,359
0.75
1,019
4.4%
$
433,800
$
26.60
2 Bedroom
3,517
1.00
3,517
15.4%
$
1,496,800
$
35.47
3 Bedroom
164
1.25
205
0.9%
$
87,300
$
44.34
4 Bedroom
3
1.50
5
0.0%
$
1,900
$
53.21
Mobile Homes
Any Size
492
0.75
369
1.6%
$
157,000
$
26.60
Non -Residential
Per SSU
1,853
Varies
6,255
27.3%
$
2,662,300
$
35.47
Totals
17,200
22,908
$
9,751,000
Notes:
(1) Estimate based on transition of about 3,700 additional single family accounts to usage -based billing.
(2) From existing flat wastewater rate structure.
(3) Based on one sanitary sewer unit (SSU) equivalent to a 2 -bedroom home.
Usage -Based Rate Cost of Service Analysis
A more detailed cost of service analysis is warranted for the City's usage -based
wastewater rates. However, the City does not yet have sufficient information for the
complete development of wastewater rates that consider wastewater flow as well as
different strength categories for various types of non-residential customers. The following
steps will need to be taken in order for fully develop these wastewater rates:
• All non-residential customers should be assigned to a low, medium, or high
strength category based on type of business. City staff and consultant plan to
work on this jointly in 2014 using industry guidelines for assigning different
types of businesses. It is estimated that about 80 percent of non-residential
users will fall into a low strength category, 15 percent into medium strength,
and 5 percent into high strength.
• The size of water meters should be identified (or estimated) for all multi -family
and non-residential accounts. At present, about 75 percent of non-residential
accounts are metered. The City will begin metering multi -family accounts and
the remaining non-residential accounts in a few years. Estimates of future
meter sizes would be adequate to move forward with rate analyses.
THE REED GROUP, INC. PAGE 25
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
• Estimate wastewater flow from each customer class based on winter water
usage data. Data is now becoming available for single family customers, and is
available for most non-residential accounts (those with water meters), but not
for multi -family customers or about one-quarter of non-residential customers.
Once a significant portion of multi -family customers have been metered it may
be possible to develop reasonable estimates for this customer class. It may also
be possible to extrapolate water usage data from existing metered non-
residential accounts to those that are unmetered, though some uncertainty
would remain because of the non-homogenous nature of non-residential water
use.
• Assign standard biochemical oxygen demand (BOD) and suspended solids (SS)
loading factors to residential and low, medium, and high strength non-
residential customer categories. This would be accomplished using available
industry guidelines, as well as through calculations that seek to balance
calculated wastewater flow and loading data from wastewater customers with
the actual inflow data at the City's White Slough wastewater treatment plant.
Under current usage -based wastewater rates, all single family customers are subject to
the same fixed monthly service charge, even if meters vary in size. This is due to the fact
that variation in meter sizes for single family homes is due to either landscape irrigation
requirements or fire flow capacity requirements within the home. It is not related to
wastewater capacity needs. The independence from meter size does not extend to other
customer classes, however, because demand characteristics (for both water and
wastewater) are much more varied for each customer connection.
The proposed usage -based wastewater rates for FY 14-15 extend the current usage -
based rates applicable for single family customers to include fixed monthly service charges
based on meter size that should be applied to multi -family and non-residential accounts.
The wastewater usage rate for multi -family customers would be the same as that for single
family customers. Placeholder estimates are also provided for non-residential low,
medium, and high strength categories. Proposed industrial rates reflect a 3.0 percent
overall increase in each rate component.
The development of fixed monthly wastewater service charges for multi -family and
non-residential accounts follows the same basic cost allocation methodology as for water
rates. In this case, a review of wastewater costs resulted in a recommended allocation of
the wastewater rate revenue requirement to customer, capacity, and commodity
components. The allocation of costs, as well as the resulting rate calculations, reflects a
balanced approach to considering different rate -setting objectives. Based on a review of
wastewater system financial information, the cost allocation resulted in a distribution of
the costs to customer, capacity, and commodity components of 5 percent, 45 percent, and
50 percent, respectively. Like the water rates, the monthly service charge will recover
customer and capacity costs, and usage rates will recover commodity costs.
Exhibit III4 summarizes the calculation of fixed monthly wastewater service charges
based on size of the water meter. The monthly service charges are calculated by allocating
customer costs equally across all customer accounts and by allocating capacity related costs
in proportion to meter capacity.
THE REED GROUP, INC. PAGE 26
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -4
City of Loda
FY 14-15 Monthly Wastewater Service Charae Calculation
Customer Group
Customer
Costs (1)
Capacity
Costs (2)
Hydraulic
Capacity
Factor (3)
Monthly
Service
Char a (4)
Single Family Residential
All Connections
$
2.42
$
21.80
1.00
$
24.23
Multi -Family and Non -Residential
3/4" meter
$
2.42
$
21.80
1.00
$
24.23
1" meter
$
2.42
$
36.41
1.67
$
38.83
1 1/2" meter
$
2.42
$
72.60
3.33
$
75.03
2" meter
$
2.42
$
116.21
5.33
$
118.63
3" meter
$
2.42
$
218.03
10.00
$
220.45
4" meter
$
2.42
$
363.46
16.67
$
365.88
6" meter
$
2.42
$
726.70
33.33
$
729.12
8" meter
$
2.42
$
1,162.76
53.33
$
1,165.18
Notes:
(1) Based on 5 percent of revenue requirement allocated equally to each customer.
(2) Based on 45 percent of revenue requirement allocated to each customer in
in proportion to meter capacity.
(3) Meter capacity in relation to capacity of a 3/4" water meter.
(4) Sum of customer and capacity costs for each meter size.
The City's wastewater rate structure currently includes a uniform wastewater usage
rate for single family customers. For FY 14-15, that rate will be increased by up to 3.0
percent. The same rate would also apply to multi -family customers, as the strength
characteristics (BOD and SS) for single family and multi -family customers are the same.
Wastewater flows for single family customers are estimated based on the average
monthly water use from December through February of each year. This average winter
water use is a reasonable estimate of wastewater flow throughout the year, because it
generally reflect water usage in the absence of irrigation demands. Each July, the City
determines a wastewater usage charge based on the winter water use and the applicable
wastewater usage rate. The monthly service charge is then added to the usage charge to
arrive at the total wastewater bill. This bill amount then remains fixed until the following
July, when the process is repeated with the then most recent winter water use data and
current wastewater rates.
Winter water use can be used to determine wastewater usage charges for multi -family
and non-residential customers as well. One potential problem, however, could occur with
businesses that have a seasonal component where winter water usage did not necessarily
provide a reasonable estimate for wastewater flow throughout the year. It is
recommended that the Director of Public Works be extended authority to adjust the
wastewater flow volume (usage) for individual customers where this is a concern.
THE REED GROUP, INC. PAGE 27
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Wastewater utilities generally identify different strength -based usage charges for non-
residential customers due to the variation in waste discharges. A fairly simple approach to
strength -based rates, and one recommended for the City, is to establish low, medium, and
high strength categories. All non-residential customers (with the exception of industrial
customers) would be assigned to one of these categories, based on the type of business. A
higher usage rate would be established for the higher strength categories, commensurate
with the costs of removing BOD and SS for wastewater.
Until non-residential customers can be assigned to a strength category, and additional
meter size and water use data obtained, it is recommended that the City use "placeholder "
estimates for strength -based wastewater rates for non-residential customers. These would
give City staff, as well as customers, a sense for what future rates may be like under this
rate approach.
PROPOSED WASTEWATER RATE SCHEDULES
Current and proposed wastewater rate schedules for both flat rates and usage -based
rates are presented in Exhibits III -5 and III -6, respectively. All rates reflect an overall 3.0
percent revenue increase relative to the current wastewater rates.
Exhibit III -5
City of Lodi
Current and Pr000sed Flat Wastewater Rates
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Proposed flat wastewater rates for schools are to be determined on the
basis of 18 student per SSU.
THE REED GROUP, INC. PAGE 28
Current
Proposed
Jul. 2013
Jul. 2014
Rate Increase 1 -->
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
2 Bedroom
$
34.44
$
35.47
3 Bedroom
$
43.05
$
44.34
4 Bedroom
$
51.66
$
53.21
5 Bedroom
$
60.27
$
62.08
6 Bedroom
$
68.88
$
70.95
7 Bedroom
$
77.49
$
79.81
Duplexes, Triplexes, Fourplexes, Apartments, and Condominiums
1 Bedroom
$
25.83
$
26.60
2 Bedroom
$
34.44
$
35.47
3 Bedroom
$
43.05
$
44.34
4 Bedroom
$
51.66
$
53.21
Mobile Homes
Any Size
$
25.83
$
26.60
Non -Residential
Per SSU (2)
$
34.44
$
35.47
Notes:
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Proposed flat wastewater rates for schools are to be determined on the
basis of 18 student per SSU.
THE REED GROUP, INC. PAGE 28
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -6
City of Lodi
Current and Pr000sed Usaae-Based Wastewater Rates
Notes:
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Usage charge based on winter water use determined as the average from
the prior December -February period. Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
Wastewater Rates for Schools
During this study, a separate analysis was performed to examine the water use
characteristics and estimate wastewater flows for schools in the Lodi Unified School
District (LUSD). At present, schools are charged for wastewater service based on student
population. High schools are assessed based on 15 students per SSU, and elementary and
middle schools are assessed based on 20 students per SSU. An examination of winter
water use data (excluding December due to the winter break), as well as consideration of
THE REED GROUP, INC. PAGE 29
Current
Jul. 2013
Proposed
Jul. 2014
Rate Increase (l)-->
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$
23.52
$
24.23
Multi -Family and Non -Residential
3/4" meter
$
24.23
1" meter
$
38.83
1 1/2" meter
$
75.03
2" meter
$
118.63
3" meter
$
220.45
4" meter
$
365.88
6" meter
$
729.12
8" meter
$
1,165.18
Usage Rates ($/CCF)
Single Family (2)
$
2.68
$
2.76
Multi -Family (2)
$
2.76
Non -Residential (2) (3)
Low Strength
$
2.76
Medium Strength
$
3.45
High Strength
$
4.49
Industrial (4)
Flow (per MG annually)
$
3,487.41
$
3,592.03
BOD (per 1,000 lbs annually)
$
575.51
$
592.78
SS (per 1,000 lbs annually)
$
359.85
$
370.65
Notes:
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Usage charge based on winter water use determined as the average from
the prior December -February period. Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
Wastewater Rates for Schools
During this study, a separate analysis was performed to examine the water use
characteristics and estimate wastewater flows for schools in the Lodi Unified School
District (LUSD). At present, schools are charged for wastewater service based on student
population. High schools are assessed based on 15 students per SSU, and elementary and
middle schools are assessed based on 20 students per SSU. An examination of winter
water use data (excluding December due to the winter break), as well as consideration of
THE REED GROUP, INC. PAGE 29
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
the overall level of activity at schools throughout the year (including reduced activity in
summer months) resulted in a determination that all schools of the LUSD should be
charged for wastewater service based on 18 students per SSU. While this change will affect
the wastewater bills of all schools, it will have only a minor affect on the aggregate for all
schools.
METER INSTALLATION AND TRANSITION TO USAGE -BASED BILLING
The City continues to install water meters on all unmetered water service connections.
Below is a summary of the status of the metering program and plans to transition
customers from flat wastewater rates to usage -based wastewater rates. Each July an
additional batch of customers is transitioned to usage -based wastewater rates.
• Single Family - More than 50 percent of single family homes now have water
meters with two- to three -thousand additional meters installed each year. The
transition to usage -based wastewater rates is lagging the transition to usage -
based water rates by about 18 months. In July 2014, a second batch of single
family customers will transition to usage -based water rates (about 3,700
accounts). The transition to usage -based wastewater rates for single family
customers is expected to be completed by about July 2020.
• Mobile Home Parks - All mobile home parks have now been provided with
master water meters on the connections serving each park. The City plans to
convert all mobile home parks to usage -based wastewater rates in the near
future.
• Multi -Family - The City will begin installing water meters for apartment and
condominium complexes, and plans to complete these installations by 2018. All
multi -family accounts (including duplexes, triplexes, and fourplexes) are
expected to transition to usage -based wastewater rates in July 2020. Similar to
mobile home parks, at that time billing may shift from tenant to property
owner.
• Non -Residential - At present, about 75 percent of non-residential accounts have
water meters and are subject to usage -based water rates. With the exception of
industrial users, all non-residential customers currently pay flat wastewater
rates. Further analysis will be needed to fully develop a strength and usage -
based wastewater rate structure for non-residential accounts. It may be several
years before these customers are fully transitioned to usage -based rates.
The transition from flat rates to usage -based rates may affect the total amount of
customers' wastewater bills. For single family customers many will have a decrease in
their monthly wastewater bill with that transition, while others may have an increase.
Multi -family customers will generally benefit from the transition to usage -based
wastewater rates. It is too early to tell how individual non-residential customers may be
affected by the transition.
THE REED GROUP, INC. PAGE 30
A
F
G
H
I
J
K
L
1
Exhibit D
City of Lodi -- Water Utility
Financial Plan Summary
2
3
4
5
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
6
OPERATING FUND :0
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'ls., Services & Other
Debt Service
1991 CSDW Loan Payments
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
2.5%
Jan. 2013
10,289,917
12,441,040
51,400
855,303
-
13,347,743
1,060,000
6,300,000
-
2,172,000
670,000
2,592,000
-
2,306561
15,100,561
8,537,099
1,624,000
6,913,099
2.98
2.5%
]an. 2014
8,537,099
12,745,000
77,000
77,000
-
12,899,000
780,000
5,500,000
-
2,093,000
755,000
2,963,000
-
2355 886
14,446,886
6 989 213
1,648,000
5,341,213
3.13
3.0%
Jan. 2015
6,989,213
13,080,000
61,000
80,000
109,000
13,330,000
780,000
6,000,000
-
2,165,000
788,000
3,054,000
-
2,307,811
15,094,811
5,224,402
1,697,000
3,527,402
2.85
3.0%
]an. 2016
5,224,402
13,492,000
110,000
83,000
109,000
13,794,000
780,000
6,000,000
-
2,239,000
822,000
3,149,000
-
2306 561
15,296,561
3 721 841
1,748,000
1,973,841
2.98
3.0%
Jan. 2017
3,721,841
13,921,000
123,000
86,000
109,000
14,239,000
780,000
5,000,000
-
2,315,000
857,000
3,247,000
-
2,308,061
14,507,061
3,453,780
1,800,000
1,653,780
3.08
3.0%
Jan. 2018
3,453,780
14,425,000
119,000
89,000
109,000
14,742,000
780,000
5,000,000
-
2,395,000
895,000
3,347,000
-
2305 611
14,722,611
3 473 169
1,854,000
1,619,169
3.22
3.0%
]an. 2019
3,473,169
14,887,000
194,000
92,000
109,000
15,282,000
780,000
1,000,000
-
2,475,000
934,000
3,449,000
-
2,307,111
10,945,111
7,810058
1,910,000
5,900,058
3.38
7
9WATER
10
11
12
13
14
15
16
17
18
19
20
22
23
24
26
27
28
29
30
31
32
33
34
35
36
mwov i =mwii•
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
Expenditures
Water Meter/Main Install. Project
Water Taps
Miscellaneous Water Mains
Commercial Meter Replacements
Valve Exercising Program
Utility Frame & Cover Replacement
Surface WTP Design
Surface WTP Construction
Financial System Replacement
UWMP Update
Meter Fixed Network
MSC/Kofu Parking Lot
Well 2 -Replace Motor
Well 6R -Pump Rehab/Re I
3,509,150
6,300,000
16,222
-
5,340,088
11,656,310
6,511,000
66,000
-
-
-
110,000
-
5,340,000
-
-
-
75,000
-
543,000
2,390,460
5,549,755
22,000
926,000
-
6,497,755
5,831,000
77,000
52,000
5,000
21,000
-
-
-
258,000
-
-
-
21,000
93,000
2,140,215
6,000,000
22,000
-
-
6,022,000
5,027,000
80,000
53,000
5,000
21,000
-
-
-
265,000
-
-
-
-
-
2,194,215
6,000,000
58,000
-
-
6,058,000
5,177,000
82,000
55,000
5,000
22,000
-
-
-
-
55,000
-
-
-
-
2,511,215
5,000,000
74,000
-
-
5,074,000
5,333,000
84,000
56,000
6,000
23,000
-
-
-
-
-
-
-
-
51,000
1,813,215
5,000,000
108,000
-
-
5,108,000
2,197,000
87,000
58,000
6,000
23,000
-
-
-
-
-
-
-
-
-
4,454,215
1,000,000
151,000
-
-
1,151,000
1,067,000
90,000
60,000
6,000
24,000
-
-
-
-
-
-
-
-
-
37
38
39
40
41
42
43
44
47
48
49
50
51
52
53
56
57
58
60
61
62
63
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Exhibit D
City of Lodi -- Water Utility
Financial Plan Summary
2
3
4
5
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
65
Well 5 -Pump Rehab/Rept
Well 7 -Pump Rehab/Rept
Well 8 -Repairs/Pump Repl
Well 12 -Pump Rehab/Rept
Well 13 -Pump Rehab/Rept & Replace Emerg Gen
Well 14 -Pump Rehab/Rept
Well 15 -Pump Rehab/Rept
Well 16 -Pump Rehab/Electrical Upgrade
Well 17 -Pump Rehab/Electrical Upgrade
Well 18 -Pumpb Rehab/Electrical Upgrade
Well 19 -Pump Replacement
Well 20 -Pump Rehab/Electrical Upgrade
Well 21 -Pump Rehab/Electrical Upgrade
Well 22 -Replace Motor
Well 23 -Replace Motor
Well 25 -Add Emergency Generator
Well 28 -Add Emergency Generator
Well Electrical Panel Upgrades/Rept
Well Site Improvements
MSC Paving
MSC Shop Decommission
Vehicles/Equipment
Total Expenditures
Ending Balance
-
-
-
-
-
-
-
-
-
-
94,000
-
-
-
-
-
-
-
-
-
-
36,000
12,775,000
2,390,460
46,000
-
62,000
-
98,000
-
-
-
-
-
4,000
-
-
15,000
15,000
-
-
31,000
26,000
-
-
93,000
6,748,000
2 140 215
-
-
-
48,000
-
48,000
48,000
-
-
-
-
-
-
-
-
133,000
133,000
-
27,000
-
-
80,000
5,968,000
2,194,215
-
49,000
-
-
-
-
-
55,000
55,000
55,000
-
-
-
-
-
-
-
-
27,000
-
-
104,000
5,741,000
2 511 215
-
-
-
-
-
-
-
-
-
-
-
56,000
56,000
-
-
-
-
-
28,000
-
-
79,000
5,772,000
1,813,215
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29,000
-
-
67,000
2,467,000
4 454 215
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48,000
1,295,000
4L310 215
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
87
90
91
92
93
IMF WATER FACILITIES (182)
Beginning Balance
Revenues
Water Impact Mitigation Fees
Transfer in from Capital Fund 181 (plant design)
Transfer in from Capital Fund 181 (Well #27)
Interest Earnings
Total Revenues
Expenditures
Previous projects
Surface Water -Design
GPS Control Grid
Well #27 - Pump, Motor & Site Impr.
Well #28
IMF Update
Transfer out to 1218 for General Plan
Transfer to Fund 181 for past projects
Transfer to Fund 181 for Well 27
Transfer to Operations Fund 180 for Debt Service
Total Expenditures
Ending Balance
Owed Fund 180 for Debt Service
(9,454)
2,529
-
-
323
2,853
-
-
-
245
-
-
-
-
-
-
245
(6,846)
3,774,000
(6,846)
109,000
-
-
-
109,000
-
-
-
-
-
-
-
-
49,755
-
49,755
52,399
5,345,000
52,399
109,000
-
-
1,000
110,000
-
-
-
-
-
-
-
-
-
109,000
109,000
53,399
6,775,000
53,399
109,000
-
-
1,000
110,000
-
-
-
-
-
-
-
-
-
109,000
109,000
54,399
8,204,000
54,399
109,000
-
-
2,000
111,000
-
-
-
-
-
-
-
-
-
109,000
109,000
56,399
9,634,000
56,399
109,000
-
-
2,000
111,000
-
-
-
-
-
-
-
-
-
109,000
109,000
58,399
11,062,000
58,399
109,000
-
-
2,000
111,000
-
-
-
-
-
-
-
-
-
109,000
109,000
60,399
12,491,000
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
114
115
116
117
165
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Exhibit D
City of Lodi -- Water Utility
Financial Plan Summary
2
3
4
5
FY 12-13 FY 13-14 FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
166
167
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
13,277,000 11,538,000 9,828,000
1,624,000 1,648,000 1,697,000
2,356,000 2,356,000 2,356,000
- - -
- - -
9,297,000 7,534,000 5,775,000
8,643,000
1,748,000
2,356,000
-
-
4,539,000
7,679,000
1,800,000
2,356,000
-
-
3,523,000
10,342,000
1,854,000
2,356,000
-
-
6,132,000
14,537,000
1,910,000
2,356,000
-
-
10,271,000
168
169
170
171
172
173
City of Lodi -- Water Utility
Financial Plan Assumptions
178
179
180
181
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Customer Account Assumptions
No. of DUs/Accounts
No. of 3/4" Eq. Mtrs.
No. of New Connections
Customer Growth Rate
Water Mitigation Impact Fee
3.0% 3.0%
3.4% 3.4%
4.5% 4.5%
2.5% 3.0%
1.0% 1.0%
23,456 23,506
25,504 25,554
50 50
0.20% 0.20%
$ 1,290 $ 1,330 $
3.0%
3.4%
4.5%
3.0%
1.0%
23,556
25,604
50
0.20%
1,370
3.0%
3.4%
4.5%
3.0%
2.5%
23,606
25,654
50
0.19%
$ 1,410 $
3.0%
3.4%
4.5%
3.0%
3.5%
23,656
25,704
50
0.19%
1,450
3.0%
3.4%
4.5%
3.0%
3.5%
23,706
25,754
50
0.19%
$ 1,490
3.0%
3.4%
4.5%
3.0%
3.5%
23,756
25,804
50
0.19%
$ 1,530
182
183
184
185
186
187
188
189
190
191
192
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WASTEWATER OPERATING
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
Operating Transfers Out (to GF)
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
WASTEWATER CAPITAL OUTLAY
Beginning Balance
Revenues
Transfer In (from 170)
Transfer In (from 170-Deprec.)
Other Revenue
Investment Earnings
Total Revenues
Exhibit E
City of Lodi -- Wastewater Utility
Financial Plan Summar
FY 12-13 FY 13-14 FY 14-15
3% 3% 3%
2,892,538 6,302,078 6,256,598
13,747,216 14,187,000 14,641,000
20,625 68,000 68,000
227,531 234,400 241,200
31,000 31,000 31,000
700,000 16,000 149,000
- - -
14,726,372 14,536,400 15,130,200
67,500 - -
1,451,478 1,068,000 1,068,000
- 500,000 3,200,000
- - -
1,103,921 1,124,330 1,166,800
3,377,841 3,948,650 4,104,000
492,917 611,260 633,000
393,225 415,710 433,000
4,450 23,930 25,000
381,000 3,266,000 -
2,138,000 98,000 98,000
1,599,000 1,604,000 1,603,000
375,000 1,922,000 1 970 000
11,316,832 14,581,880 14,300,800
6,302,078 6 256 598 7,085,998
2,735,000 3,040,000 2,283,000
3,567,078 3,216,598 4,802,998
1.61 1.09 2.10
1.93 2.36 2.39
7,394,480 5,925,257 4,706,686
- - 2,700,000
- 500,000 500,000
96,429 96,429 96,429
1,772 - -
98,200 596,429 3,296,429
FY 15-16
3%
7,085,998
15,110,000
266,000
248,000
110,000
150,000
-
15,884,000
-
1,068,000
3,250,000
-
1,209,400
4,265,000
656,000
451,000
26,000
-
98,000
1,607,000
1,961,000
14,591,400
8 378 598
2,345,000
6,033,598
2.24
2.53
421,115
2,750,000
500,000
96,429
-
3 346 429
FY 16-17
3%
8,378,598
15,594,000
311,000
255,900
110,000
154,000
-
16,424,900
-
1,068,000
2,975,000
-
1,254,000
4,432,000
679,000
470,000
27,000
-
98,000
1,606,000
1 947 000
14,556,000
10,247,498
2,409,000
7,838,498
2.33
2.62
692,543
2,475,000
500,000
96,429
-
3,071,429
FY 17-18
3%
10,247,498
16,093,000
376,000
263,800
110,000
154,000
-
16,996,800
-
1,451,478
7,900,000
-
1,300,700
4,606,000
703,000
489,000
28,000
-
98,000
1,614,000
1,949,000
20,139,178
7,105,120
2,573,000
4,532,120
2.30
2.70
716,972
7,400,000
500,000
96,429
-
7 996 429
FY 18-19
3%
7,105,120
16,608,000
266,000
271,800
110,000
154,000
-
17,409,800
-
1,451,478
7,870,000
-
1,349,400
4,787,000
729,000
509,000
29,000
-
98,000
1,617,000
1 949 000
20,388,878
4 126 042
2,642,000
1,484,042
2.33
2.73
694,400
7,370,000
500,000
96,429
-
7,966,42c)
2
3
4
5
6
7
8
9
10
12
13
14
15
16
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
35
36
37
38
39
40
41
42
43
44
45
46
47
48
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Expenditures
Interfund Loan to Parks (Grape Bowl)
Financial System Replacement
Financial Planning
Elm to Pine Alley Sewer/Laurel Storm Project
Misc. System Relocations
Misc. Wastewater Taps
Collect. System Capac. Enhanc. Projects
Wastewater Main Replac./Lining Proj.
Storm Drain Trash Handling System
Lift Sta. Remote Term. Unit Replac.
Utility Frame & Cover Replacement
Hutchins Street Reconstruction
MSC/Kofu Parking Lot
Replace 04-95 Vacuum Truck
Decommission Fleet Service Shop
Munic. Service Center PBX Replac.
Munic. Service Center Parking Reconstr.
Lift Station Generator Replacements
Vehicles /Equipment
White Slough Compliance Studies & Rpts
Plant Maint. & Land Applic. Area Improv.
Influent Screening Replacement
UV Disinfection Upgrade
Aeration Diffuser Replacement
Cloth Filter Media Replacement
Digested Sludge Line to Presses
Electrical Upgrades
Admin/Ops Building Improvements
Rotary Press Maintenance Crane & air compressor
Pond Gates
Shop Rollup Door
Emergency Generator Maintenance
Road to Outfall Repair
Secondary Scum Trough Drives
Misc Paving
SCADA Upgrades/PLC Replacement
Primary Chain & Flights
Boiler Retube
Chain Hoist
Gas compressor (WSWPCF)
Design Effluent Irrigation Improvements
Irrigation Conveyance & Pumping Construction
Effluent Storage Reservoir Construction
Effluent Storage Reservoir Construction
Micro Turbine
Exhibit E
City of Lodi -- Wastewater Utility
Financial Plan Summar
FY 12-13 FY 13-14 FY 14-15
675,000
- 250,000 260,000
- - -
55,000 -
- 35,000 36,000
8,000 40,000 42,000
- - 21,000
589,000 - 2,080,000
10,000 400,000 312,000
- - -
116,225 - -
81,198
- 75,000
- -
- - -
- - -
- - -
- - 260,000
36,000 75,000 62,000
20,000 - -
32,000 - -
- 2,080,000
- 312,000
- -
30,000
30,000 -
- 52,000
- 780,000
30,000 -
35,000 -
8,000 -
20,000 -
10,000 -
12,000 -
10,000 -
- 78,000
- 80,000 42,000
- - 21,000
- - -
- - -
- - -
- - -
- - -
- - -
- - 1,040,000
FY 15-16
-
-
-
38,000
43,000
216,000
108,000
1,622,000
-
-
-
-
-
-
-
-
70,000
-
-
-
-
-
32,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
811,000
-
-
-
-
FY 16-17
-
39,000
45,000
22,000
2,250,000
-
-
79,000
-
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
FY 17-18
-
41,000
47,000
234,000
117,000
-
-
877,000
-
-
35,000
-
-
-
-
-
-
-
-
-
-
-
-
-
1,872,000
4,679,000
-
FY 18-19
-
43,000
49,000
24,000
2,433,000
-
-
182,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,867,000
-
2
3
4
5
49
51
52
53
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
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Dissolved Air Floatation Tank Rebuild
Tailwater Pump (WSWPCF)
UV Bypass System Improvements
Fence Repairs/Upgrades
Anaerobic Digester Painting
Digester Cleaning & Gas Scrubber Relining
Pond Lining Project
WSWPCF Building/Restroom Expansion
Plant Security Enhancements
Miscellaneous Future Projects
Total Expenditures
Ending Balance
WASTEWATER CAPITAL RESERVE (172)
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)
IMF WASTEWATER FACILITIES (173)
Beginning Balance
Revenues
Wastewater IMF
Interest Earnings
Total Revenues
Expenditures
Transfer Out (to 170 for Debt Service)
Transfer Out refund PCE TCE
Exhibit E
City of Lodi -- Wastewater Utility
Financial Plan Summar
FY 12-13 FY 13-14 1 FY 14-15
- - -
- - -
- - -
- - -
- 90,000 -
- - -
- - -
- 300,000 -
- 130,000 -
- 100,000 104,000
1,567,423 1,815,000 7,582,000
5,925,257 4 706 686 421,115
3,135,539 3,135,539 3,135,539
- - -
31,000 31,000 31,000
31,000 31,000 31,000
- - -
- - -
31,000 31,000 31,000
31,000 31,000 31,000
3,135,539 3 135 539 3,135,539
2,379,536 2,379,536 2,379,536
756,003 756,003 756,003
- - -
678,302 15,775 148,775
25,681 149,000 149,000
11,792 - 1,000
37,473 149,000 150,000
700,000 16,000 149,000
- - -
FY 15-16
-
-
-
27,000
-
-
-
-
-
108,000
3,075,000
692,543
3,135,539
-
110,000
110,000
-
-
110,000
110,000
3 135 539
2,379,536
756,003
-
149,775
149,000
5,000
154,000
150,000
-
FY 16-17
-
-
-
112,000
3,047,000
716,972
3,135,539
-
110,000
110,000
-
-
110,000
110,000
3,135,539
2,379,536
756,003
-
153,775
149,000
5,000
154,000
154,000
-
FY 17-18
-
-
-
117,000
8,019,000
694,400
3,135,539
-
110,000
110,000
-
-
110,000
110,000
3 135 539
2,379,536
756,003
-
153,775
149,000
5,000
154,000
154,000
-
FY 18-19
-
-
30,000
-
-
122,000
7,750,000
910,829
3,135,539
-
110,000
110,000
-
-
110,000
110,000
3,135,539
2,379,536
756,003
-
153,775
149,000
5 000
154,000
154,000
-
2
3
4
5
104
105
106
107
108
109
110
111
112
113
115
117
118
119
120
121
122
124
125
126
127
129
130
131
133
135
136
137
138
H
141
142
143
144
146
147
148
M149
151
The Reed Group, Inc. DRAFT -- 10/22/2013
The Reed Group, Inc. DRAFT -- 10/22/2013
A
F
G
H
I
J
K
L
1
City -Wide IMF Program Update
Total Expenditures
Ending Balance
Owed to Fund 170 for Debt Service
WW Rate Stabilization Fund (174)
Beginning Balance
Revenues
Transfer In from 170
Total Revenues
Expenditures
Transfer Out to 170
Total Expenditures
Ending Balance
Exhibit E
City of Lodi -- Wastewater Utility
Financial Plan Summar
FY 12-13 FY 13-14 FY 14-15
- - -
700,000 16,000 149,000
15,775 148f775 149,775
849,000 2,643,000 3,454,000
500,000 500,000 500,000
- - -
- - -
- - -
- - -
500,000 500,000 500,000
FY 15-16
-
150,000
153f775
4,267,000
500,000
-
-
-
-
500,000
FY 16-17
-
154,000
153,775
5,075,000
500,000
-
-
-
-
500,000
FY 17-18
-
154,000
153,775
5,888,000
500,000
-
-
-
-
500,000
FY 18-19
-
154,000
153,775
6,703,000
500,000
-
-
-
-
500,000
2
3
4
5
154
156
158
159
160
161
162
163
164
166
167
168
170
172
173
174
Aggregate End -of -Year Balance
Operating Reserve (25%)
Restricted DS Reserve
2007 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
15,879,000
2,735,000
2,379,536
756,003
500,000
9,508,461
14,748,000
3,040,000
2,379,536
756,003
500,000
8,072,461
11,292,000
2,283,000
2,379,536
756,003
500,000
5,373,461
12,860,000
2,345,000
2,379,536
756,003
500,000
6,879,461
14,754,000
2,409,000
2,379,536
756,003
500,000
8,709,461
11,589,000
2,573,000
2,379,536
756,003
500,000
5,380,461
8,826,000
2,642,000
2,379,536
756,003
500,000
2,548,461
175
176
177
178
179
180
181
182
183
194
City of Lodi -- Wastewater Utility
Financial Plan Assumptions
195
196
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
197
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Cust. Growth (SSUs)
Wastewater Mitigation Impact Fee
3.0%
3.4%
4.5%
4.0%
2.0%
-
$ 6,390
3.0%
3.4%
4.5%
4.0%
2.5%
50
$ 6,650
3.0%
3.4%
4.5%
4.0%
3.0%
51
$ 6,920 $
3.0%
3.4%
4.5%
4.0%
3.5%
52
7,200
3.0%
3.4%
4.5%
4.0%
3.5%
53
$ 7,490
3.0%
3.4%
4.5%
4.0%
3.5%
54
$ 7,790
3.0%
3.4%
4.5%
4.0%
3.5%
55
$ 8,100
198
199
200
201
202
203
204
205
206
The Reed Group, Inc. DRAFT -- 10/22/2013
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.2014)
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
29.90
$
30.65
$
31.57
$
32.52
$
33.50
$
34.51
$
35.55
2 Bedroom
$
35.91
$
36.81
$
37.91
$
39.05
$
40.22
$
41.43
$
42.67
3 Bedroom
$
43.04
$
44.12
$
45.44
$
46.80
$
48.20
$
49.65
$
51.14
4 Bedroom
$
51.72
$
53.01
$
54.60
$
56.24
$
57.93
$
59.67
$
61.46
5 Bedroom
$
62.03
$
63.58
$
65.49
$
67.45
$
69.47
$
71.55
$
73.70
6 Bedroom
$
74.44
$
76.30
$
78.59
$
80.95
$
83.38
$
85.88
$
88.46
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
2 Bedroom
$
30.79
$
31.56
$
32.51
$
33.49
$
34.49
$
35.52
$
36.59
3 Bedroom
$
36.94
$
37.86
$
39.00
$
40.17
$
41.38
$
42.62
$
43.90
4 Bedroom
$
44.32
$
45.43
$
46.79
$
48.19
$
49.64
$
51.13
$
52.66
Mobile Homes
Any Size
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
Non -Residential
Existing unmetered
Varies
+2.5%
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.2014)
(Jan.2014)
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
2.5%(2)
(3)
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1 " meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
69.63
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
119.79
$
122.78
$
114.71
$
109.84
$
101.52
$
104.57
$
107.71
$
110.94
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1 " meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
64.28
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
75.27
$
77.15
$
84.29
$
94.17
$
101.52
$
104.57
$
107.71
$
110.94
3" meter
$
105.38
$
108.01
$
132.74
$
162.18
$
187.65
$
193.28
$
199.08
$
205.05
4" meter
$
135.51
$
138.90
$
193.14
$
254.80
$
310.67
$
319.99
$
329.59
$
339.48
6" meter
$
195.68
$
200.57
$
333.69
$
480.82
$
617.94
$
636.48
$
655.57
$
675.24
8" meter
$
255.91
$
262.31
$
494.23
$
747.94
$
986.82
$
1,016.42
$
1,046.91
$
1,078.32
10" meter
$
316.01
$
323.91
$
674.61
$
1,056.08
$
1,417.30
$
1,459.82
$
1,503.61
$
1,548.72
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.97
$
0.96
$
0.99
$
1.02
$
1.05
Tier 2 (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.33
$
1.27
$
1.31
$
1.35
$
1.39
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.70
$
1.59
$
1.64
$
1.69
$
1.74
Multi -Family and Non -Residential
(1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.09
$
1.14
$
1.17
$
1.21
$
1.25
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
City of Lodi
Current and Pro osed Flat Wastewater Rates
Future Rate Ceiling
Current Proposed Proposed Proposed Proposed Proposed
Jul. 2013 Jul. 2014 Jul. 2015 Jul. 2016 Jul. 2017 Jul. 2018
Rate Increase --> 3.0% 3.0% 3.0% 3.0% 3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
5 Bedroom
$
60.27
$
62.08
$
63.94
$
65.86
$
67.84
$
69.88
6 Bedroom
$
68.88
$
70.95
$
73.08
$
75.27
$
77.53
$
79.86
7 Bedroom
$
77.49
$
79.81
$
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Condominiums
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
Mobile Homes
Any Size
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
Non -Residential (1)
Per SSU
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
Notes:
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Wastewater Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Jul. 2013
Jul. 2014
Jul. 2015
Jul. 2016
Jul. 2017
Jul. 2018
Rate Increase -->
3.0%
3.0%
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$ 23.52
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
1" meter
$
38.83
$
39.99
$
41.19
$
42.43
$
43.70
1 1/2" meter
$
75.03
$
77.28
$
79.60
$
81.99
$
84.45
2" meter
$
118.63
$
122.19
$
125.86
$
129.64
$
133.53
3" meter
$
220.45
$
227.06
$
233.87
$
240.89
$
248.12
4" meter
$
365.88
$
376.86
$
388.17
$
399.82
$
411.81
6" meter
$
729.12
$
750.99
$
773.52
$
796.73
$
820.63
8" meter
$
1,165.18
$
1,200.14
$
1,236.14
$
1,273.22
$
1,311.42
Usage Rates ($/CCF)
Single Family (2)
$ 2.68
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Multi -Family (2)
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Non -Residential (2) (3)
Low Strength
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Medium Strength
$
3.45
$
3.55
$
3.66
$
3.77
$
3.88
High Strength
$
4.49
$
4.62
$
4.76
$
4.90
$
5.05
Industrial (4)
Flow (per MG annually)
$ 3,487.41
$
3,592.03
$
3,699.79
$
3,810.78
$
3,925.10
$
4,042.85
BOD (per 1,000 lbs annually)
$ 575.51
$
592.78
$
610.56
$
628.88
$
647.75
$
667.18
SS (per 1,000 lbs annually)
$ 359.85
$
370.65
$
381.77
$
393.22
$
405.02
$
417.17
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
RESOLUTION NO. 2013-
A RESOLUTION OF THE LODI CITY
COUNCIL SETTING PROPERTY OWNER
METER CHARGE SCHEDULE
WHEREAS, the Council of the City of Lodi finds as follows:
The City of Lodi provides water service to its citizens;
2. The State has mandated that all water supply services be metered by
January 1, 2025;
3. Staff recommends establishment of a fee schedule to fund the installation
of water meters;
4. Staff recommends adopting the property owner meter schedule as
presented in Exhibit A;
5. The Council directed that notice of a hearing thereon be given to the
property owners and water service utility customers in the City, with such
notice to include, among other matters, the information required to be
included pursuant to California law;
6. 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;
7. 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;
8. 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;
9. On December 18, 2013, the City Council conducted said public hearing,
at which time the City Council heard all objections and protests to the
proposed property owner meter charge schedule;
10. Written protests against the proposed property owner meter charge
schedule were not presented by a majority of the property owners and
water and wastewater utility customers; and
11. The proposed property owner meter charge schedule is 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.
follows:
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 property owner meter charge schedule as
attached hereto as Exhibit A is hereby approved.
Section 3. Effective Date. This resolution shall take effect from and after the
date of its passage.
Dated: December 18, 2013
-------------------------------------------------------------------
-------------------------------------------------------------------
I hereby certify that Resolution No. 2013- was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 18, 2013, by the
following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
RANDI JOHL-OLSON
City Clerk
2013-
Exhibit A
Property Owner Meter Charge Schedule
Meter Size
Charge
%11
$300
1 "
$350
1 '/2"
$780
2"
$970
3"
$1,980
4"
$3,570
6"
$6,760
8"
$11,520
RESOLUTION NO. 2013-
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING VACANT RESIDENTIAL UNIT WATER AND
WASTEWATER RATES
WHEREAS, the Council of the City of Lodi finds as follows:
The City of Lodi provides water supply and wastewater disposal service
to its citizens;
2. The City charges customers of these utilities a charge to fund the on-
going operation and maintenance of the water supply and wastewater
disposal service;
3. Staff recommends the vacant residential unit water and wastewater utility
charge for customers without a metered service be equal to the monthly
base charge for metered customers having the same size of meter in their
future service. There would not be a specific vacant unit charge for the
following customer classes.
• Vacant single family detached with meter — customers would pay the
monthly base rate and presumably there would be no usage and,
therefore, no usage charge.
• Vacant single family attached (duplex, triplex, fourplex — master
meter) — property owners would pay the monthly base rate and usage
charges for the occupied units.
• Vacant single family attached (duplex, triplex, fourplex — individual
meter) — customers would pay the monthly base rate and presumably
there would be no usage and, therefore, no usage charge.
• Vacant apartment/condominium (master meter) — property owners
would pay the monthly base rate and usage charges for the occupied
units.
• Vacant apartment/condominium (individual meter) — property owners
would pay the monthly base rate and presumably there would be no
usage and, therefore, no usage charge.
• Vacant mobile home (master meter) — property owners would pay the
monthly base rate and usage charges for the occupied units.
4. Staff recommends adopting vacant residential unit water and wastewater
rates for residential customers effective immediately;
5. The Council directed that notice of a hearing thereon be given to the
property owners and water service 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;
6. 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;
7. 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;
follows:
8. 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;
9. On December 18, 2013, the City Council conducted said public hearing,
at which time the City Council heard all objections and protests to the
proposed vacant residential unit water and wastewater rates;
10. Written protests against the proposed vacant residential unit water and
wastewater rates were not presented by a majority of the property owners
and water and wastewater utility customers; and
11. The proposed vacant residential unit water and wastewater 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 vacant residential unit water and wastewater
rates are hereby approved.
Section 3. Effective Date. This resolution shall take effect from and after the
date of its passage.
Dated: December 18, 2013
-------------------------------------------------------------------
-------------------------------------------------------------------
I hereby certify that Resolution No. 2013- was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 18, 2013, by the
following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
RANDI JOHL-OLSON
City Clerk
2013-
RESOLUTION NO. 2013-
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING USAGE -BASED AND FLAT WATER AND
WASTEWATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
WHEREAS, the Council of the City of Lodi finds as follows:
The City of Lodi provides water supply and wastewater disposal service
to its citizens;
2. The City charges customers of these utilities a charge to fund the on-
going operation and maintenance of the water supply and wastewater
disposal service;
3. Staff recommends adopting usage -based and flat water rates for
residential customers as presented in Exhibit A to become effective
January 1, 2014;
4. Staff recommends adopting usage -based and flat monthly wastewater
rates for residential and nonresidential customers as presented in
Exhibit B effective January 1, 2014;
5. The Council directed that notice of a hearing thereon be given to the
property owners and water service 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;
6. 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;
7. 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;
8. 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;
9. On December 18, 2013, the City Council conducted said public hearing,
at which time the City Council heard all objections and protests to the
proposed usage -based and flat water and wastewater rates for
residential, commercial and industrial customers;
10. Written protests against the proposed usage -based and flat water and
wastewater rates for residential, commercial and industrial customers
were not presented by a majority of the property owners and water and
wastewater utility customers; and
11. The proposed usage -based and flat water and wastewater rates for
residential, commercial and industrial customers 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
follows:
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 usage -based and flat water and wastewater
rates for residential, commercial, and industrial customers as attached hereto as
Exhibits A and B are hereby approved.
Section 3. Subsequent Adjustments. As provided by Government Code
Section 53756, the rates shown in Exhibits A and B may be adjusted annually for a
period of five years by resolution beginning January 2015 through January 2019 for
water rates and July 2014 through July 2018 for wastewater rates, 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: December 18, 2013
I hereby certify that Resolution No. 2013- was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 18, 2013, by the
following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
RANDI JOHL-OLSON
City Clerk
2013-
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.2014)
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
29.90
$
30.65
$
31.57
$
32.52
$
33.50
$
34.51
$
35.55
2 Bedroom
$
35.91
$
36.81
$
37.91
$
39.05
$
40.22
$
41.43
$
42.67
3 Bedroom
$
43.04
$
44.12
$
45.44
$
46.80
$
48.20
$
49.65
$
51.14
4 Bedroom
$
51.72
$
53.01
$
54.60
$
56.24
$
57.93
$
59.67
$
61.46
5 Bedroom
$
62.03
$
63.58
$
65.49
$
67.45
$
69.47
$
71.55
$
73.70
6 Bedroom
$
74.44
$
76.30
$
78.59
$
80.95
$
83.38
$
85.88
$
88.46
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
2 Bedroom
$
30.79
$
31.56
$
32.51
$
33.49
$
34.49
$
35.52
$
36.59
3 Bedroom
$
36.94
$
37.86
$
39.00
$
40.17
$
41.38
$
42.62
$
43.90
4 Bedroom
$
44.32
$
45.43
$
46.79
$
48.19
$
49.64
$
51.13
$
52.66
Mobile Homes
Any Size
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
Non -Residential
Existing unmetered
Varies
+2.5%
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.2014)
(Jan.2014)
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
2.5%(2)
(3)
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
69.63
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
119.79
$
122.78
$
114.71
$
109.84
$
101.52
$
104.57
$
107.71
$
110.94
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
64.28
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
75.27
$
77.15
$
84.29
$
94.17
$
101.52
$
104.57
$
107.71
$
110.94
3" meter
$
105.38
$
108.01
$
132.74
$
162.18
$
187.65
$
193.28
$
199.08
$
205.05
4" meter
$
135.51
$
138.90
$
193.14
$
254.80
$
310.67
$
319.99
$
329.59
$
339.48
6" meter
$
195.68
$
200.57
$
333.69
$
480.82
$
617.94
$
636.48
$
655.57
$
675.24
8" meter
$
255.91
$
262.31
$
494.23
$
747.94
$
986.82
$
1,016.42
$
1,046.91
$
1,078.32
10" meter
$
316.01
$
323.91
$
674.61
$
1,056.08
$
1,417.30
$
1,459.82
$
1,503.61
$
1,548.72
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.97
$
0.96
$
0.99
$
1.02
$
1.05
Tier 2 (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.33
$
1.27
$
1.31
$
1.35
$
1.39
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.70
$
1.59
$
1.64
$
1.69
$
1.74
Multi -Family and Non -Residential
(1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.09
$
1.14
$
1.17
$
1.21
$
1.25
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
City of Lodi
Current and Pro osed Flat Wastewater Rates
Future Rate Ceiling
Current Proposed Proposed Proposed Proposed Proposed
Jul. 2013 Jul. 2014 Jul. 2015 Jul. 2016 Jul. 2017 Jul. 2018
Rate Increase --> 3.0% 3.0% 3.0% 3.0% 3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
5 Bedroom
$
60.27
$
62.08
$
63.94
$
65.86
$
67.84
$
69.88
6 Bedroom
$
68.88
$
70.95
$
73.08
$
75.27
$
77.53
$
79.86
7 Bedroom
$
77.49
$
79.81
$
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Condominiums
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
Mobile Homes
Any Size
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
Non -Residential (1)
Per SSU
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
Notes:
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Wastewater Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Jul. 2013
Jul. 2014
Jul. 2015
Jul. 2016
Jul. 2017
Jul. 2018
Rate Increase -->
3.0%
3.0%
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$ 23.52
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
1" meter
$
38.83
$
39.99
$
41.19
$
42.43
$
43.70
1 1/2" meter
$
75.03
$
77.28
$
79.60
$
81.99
$
84.45
2" meter
$
118.63
$
122.19
$
125.86
$
129.64
$
133.53
3" meter
$
220.45
$
227.06
$
233.87
$
240.89
$
248.12
4" meter
$
365.88
$
376.86
$
388.17
$
399.82
$
411.81
6" meter
$
729.12
$
750.99
$
773.52
$
796.73
$
820.63
8" meter
$
1,165.18
$
1,200.14
$
1,236.14
$
1,273.22
$
1,311.42
Usage Rates ($/CCF)
Single Family (2)
$ 2.68
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Multi -Family (2)
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Non -Residential (2) (3)
Low Strength
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Medium Strength
$
3.45
$
3.55
$
3.66
$
3.77
$
3.88
High Strength
$
4.49
$
4.62
$
4.76
$
4.90
$
5.05
Industrial (4)
Flow (per MG annually)
$ 3,487.41
$
3,592.03
$
3,699.79
$
3,810.78
$
3,925.10
$
4,042.85
BOD (per 1,000 lbs annually)
$ 575.51
$
592.78
$
610.56
$
628.88
$
647.75
$
667.18
SS (per 1,000 lbs annually)
$ 359.85
$
370.65
$
381.77
$
393.22
$
405.02
$
417.17
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
RESOLUTION NO. 2013-
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING NEW RATES FOR SOLID WASTE
COLLECTION
WHEREAS, the Council of the City of Lodi finds as follows:
The City of Lodi provides solid waste disposal service to its citizens
through a Franchise Agreement with USA Waste of California, Inc.,
(Waste Management);
2. Pursuant to Lodi Municipal Code Section 13.16.110 (Ordinance
No. 1709), the schedule of rates for solid waste collection shall be
established and adopted by the City Council from time to time by
Resolution;
3. Waste Management has requested increases to the current solid waste
disposal rates for inflation and increased disposal fees as permitted under
their Franchise Agreement;
4. Staff recommends City Council approve an annual rate adjustment in the
percentage amount equal to 100 percent of the annual change in the CPI.
Each year in March, staff will recommend to the City Council whether an
adjustment of 80 percent or 100 percent of the CPI increase is warranted,
depending upon changes in fuel, landfill and energy cost during the
previous year. This change makes any changes in fuel, landfill and
energy costs inclusive in the rate adjustment, whereas, the current
Agreement has them separately considered;
5. The Council directed that notice of a hearing thereon be given to the
property owners and solid waste disposal customers in the City, with such
notice to include, among other matters, the information required to be
included pursuant to California law;
6. 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;
7. 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;
8. 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;
9. On December 18, 2013, the City Council conducted said public hearing,
at which time the City Council heard all objections and protests to the
proposed increased rates;
10. Written protests against the proposed increased rates were not presented
by a majority of the property owners and wastewater disposal utility
customers.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as
follows:
Pursuant to Lodi Municipal Code Chapter 13.16 — Solid Waste — as it relates to
solid waste collection, new monthly rates are hereby established, as more fully shown on
Exhibit A, attached hereto, which is incorporated by reference as if fully set forth herein.
BE IT FURTHER RESOLVED that the rate schedules attached marked Exhibit A
shall be effective on all bills which are prepared on or after January 1, 2014; and
BE IT FURTHER RESOLVED that an annual rate adjustment in the percentage
amount equal to 80 or 100 percent of the annual change in the Consumer Price Index,
depending upon changes in fuel, landfill and energy cost during the previous year; and
BE IT FURTHER RESOLVED that, following adoption, this Resolution shall be
published one time in the "Lodi News Sentinel," a daily newspaper of general circulation
printed and published in the City of Lodi.
Dated: December 18, 2013
-------------------------------------------------------------------
-------------------------------------------------------------------
I hereby certify that Resolution No. 2013- was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 18, 2013, by the
following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
RANDI JOHL-OLSON
City Clerk
2013-
wum
tir�r� rueu�wwaq
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE JANUARY 1, 2014 TO APRIL 1, 2014
Service
1X Week
2X Week
3X Week
4X Week
SX Week
2 Cubic Yard Compactor
$
284.78
$
569.56
$
854.34
$
1,139.12
$
1,423.90
3 Cubic Yard Compactor
$
351.88
$
703.76
$
1,055.64
$
1,407.52
$
1,759.40
4 Cubic Yard Compactor
I $
419.52
1 $
839.04
$
1,258.56
$
1,678.08
$
2,097.60
Please immediately confirm receipt
o,thisfax by w 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTION
SETTING FUTURE WATER, WASTEWATER, AND SOLID WASTE
RATE SCHEDULES PURSUANT TO PROPOSITION 218 FOR
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
SEND AFFIDAVIT AND BILL TO: RANDI JOHL-OLSON, CITY CLERK
ILNS 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
JEjNNIFER ROBISON, CMC
ASSISTANT CITY CLERK
MARIA DITMORE
ADMINISTRATIVE CLERK
Faxed to the Sentinel at 369-1084 at (time) on (date) (pages)
LNS Phoned to confirm receipt of all pages at (time) MD JMR (initials)
ffxmsladvills. doe
PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTION SETTING FUTURE
WATER, WASTEWATER, AND SOLID WASTE RATE SCHEDULES PURSUANT TO
PROPOSITION 218 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 future water,
wastewater, and solid waste rate schedules pursuant to Proposition 218 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.
JPNNIFER P0. ROBISON, CMC
ASSISTANT CITY CLERK
WAdmin) DOC
RANDI JOHL-OLSON
CITY CLERK
MARIA DITMORE
ADMINISTRATIVE CLERK
Proposition 218 Notification and Hearing Process
The Lodi City Council will consider proposed water, wastewater and contracted solid
waste rate increases at a public hearing at 7:00 p.m., Wednesday, December 18, 2013, at
the Carnegie forum, 305 West Pine Street, Lodi.
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 hearing. 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 water, wastewater or contracted solid waste
bill may file a written and signed protest against the proposed increases with the
City Clerk at or before the close of the public hearing. A protest must contain a
description of the property owned sufficient to identify the property. The address or
assessor's parcel nurnber is shown on this mailing.
If you own (or rent and pay a city utility bill) on more than one parcel, you may file a
single 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 Joaquin County as the
owner ofthe property or on the utility account, the signer of the protest must also submit
written evidence of ownership or rentership and utility bill responsibility.
The City of Lodi proposes to increase all water and wastewater rates by an amount up to the
percentage increase in the annual average of the Engineering News Record (20 cities
average) Index ("ENR"), as of September 30 (water) and March 31 (wastewater) of each
year from 2014 through 2018. The City of Lodi also proposes to increase contracted solid
waste charges by the annual change in the Consumer Price Index for All Urban Consumers
for San Francisco -San Jose: California Area All Items (1982-84=100) published by the
Bureau of l.,abor Statistics ("CPI") as of December 31 of each year from December 31, 2013
through December 31, 2017. The water and wastewater increases shall not exceed three
percent (3%) per year. The IBNR and CPI based increases will be implemented as needed to
pay for inflation -based increased costs of providing water, wastewater and contracted solid
waste serviees. The new ENR/CPI based rates are not reflected in an exhibit at this time
because they are dependent upon performance of thy; ENR/CPI.
']"he City also proposes to institute new rates for installation of meters over'/, of an inch
as set forth in the attached rate table entitled Exhibit A Meter Charge Schedule. establish
a new vacant unit rate as set forth in the attached rate table entitled Exhibit 13 Vacant Unit
Rate; approve new flat rate water and wastewater rates as set forth in the attached rate
tables entitled Exhibit C Current and Proposed Flat Water Rates and Flat Wastewater
Rates; and restructure rates for single-family residential, multi -family and non residential
as further described in the attached rate table entitled Exhibit D Current and Proposed
Usage Based Water Rates and Usage Based Wastewater Rates. Single-family residential
rates are based on three increasing tiers as the ratepayer's water usage increases.
Non-residential and multi -family residential only have one tier because they do not
typically have discretionary water uses. Under the current structure, that single tier
equals the rate paid by residential in the lowest first tier. The rate restructure will
increase the single tier for multi -family and non-residential rates to the weighted average
of the multiple tier rates and reduce the multiple tier rates for single -family residential by
the Sarno amount to achieve better equity between the rate classes. 17he current
commercial contractor stews for- solid waste are shown in Fxhlbrt F and will be adjusted
for CTI changes as provided in the next paragraph,
R is currently proposed that the INM and CPI based ad.justmcnts will take place for five
one-year periods beginning in the first year on February 15, 2014 (wal.wj July 1, 2014
(wastewater), and April 1, 2014 (solid waste) and on January 1 (water), July I
(wastewater) and PWA I 1 (solid waste) every year thereafter through 2018. It is also
currently proposed that the rate reStructUring, vacant unit rate and meter- installation rate
Or motors exceedinu„ I/� inch will take place on February 15, 2014. At the public hearing,
Council shall hear all protests and tabulate the ballots. One written protest per parcel,
filed by the owner- or tenant (paying the utility bill) of the parcel shall be counted in
calculating a nla)orlty protest to a proposed new fCC Or charge Snbl{;Ct to the requirements
of Section 6 of Ardele XHI 1) of the California C.OnStltUd011. If the votes conliiCt, the
City will court the no vote.
Written pretests may be mailed to:
City OC Lodi
titin: City Clerk
P O. Box 3006
Lodi, CA 95241-1910
Written protests may also be delivered in person to the City Clerk, 221 West Pine street,
Lodh or at the public hearing.
The rate increases are being proposed in order to provide funding for system
improvements, operations and maintenance, and administrative expenses related to the
water, wastewater and contracted solid waste systems, and provide funding to inoct
inflationary costs o#'operating the utilities for the next five years.
The new and C111 based rates will be calculated by increasing the then existing rate
in each of live years starting in 2014 by the prior year's increase in the or CPI but
not to exceed i% far water and wastewater. Staff's recommended rate for the meter
installadoli over'/ ofan inch is calculated as the City's actual contracted cost to purchase
the nieter plus 55 percent to cover a portion ofthe installation cost and is presented in
column 2 of the [exhibit A Meter Charge Schedule. The vacant rate is calculated as the
monthly base chane for water or wastewater. 'rho rate restructuring is calculated by
increasing the single tier far multifamily and non-residential by the weighted average of-
the multiple ficr rate and decreasing all oCke single -family rates by the exact amOunt 01'
the revenue that the increase to multi-tarnily and non-residential is projected to oenerate.
I f you have any questions about this notice, please call to Public Works Departnxnt
at {209) 333-0706 between 7:30 a.m. and 500 p.m., Monday through Tu rsday, and
hotween 8:00 a.m. and 500 pm, on Friday, November- 8 or December t.
RANDI J01JL,-OLSON, City Clerk
City of Lodi
Exhibit A
Meter Charge Schedule
Meter
Recommended
Capacity
Installed
Lodi Fee
Santa
No
- Price
Size
Based
Cost
Schedule
Clara
Charge
Based
(Contractor
f=ee
(Cost x 1.55-
�—
Prices)
Schedule
3/
$300
$300
$940
$400
$370
$0--
1
-_. $350
$500
$1,420
$480
$365
$0
T'/-2$780
$1,000_
$3,810
$1,565
$0
2
$970_
-$1,600--
$5,720
__$745
$930
$1,730
$0
--_.._... 3-----
---1,980__—.__-.
$3,000
-_...._ $5,950
-
NIA ....
$2,065.._.__...._.._._$0
4
$3,570
$5,000---
NIA
NIA
$4,130
$0
--__
-...._...._....
$6,760
---- _------- ...
$10,000 _._.-
----..... - ..._..-_
-NIA _
__- NIA --
-_------_.---
-.- $6,750 --
_._....__....-._--_._-
— $0 --
...._.. _ -
8
$11,520
$16,000
N/A
NIA
$10,670
$0
Exhibit B
Vacant Unit Rate
® f=lat rate residential customers — monthly service charge for a 3/ inch meter
® Metered residential customers — no vacant utility rate
0 Master metered multi -family — no vacant utility rate
0 Metered multi -family unit — no vacant utility rate
a Monthly service charge will reduce with conservation pricing
K,1WMUTlI.IiY RA'11::SWV V�W2014 W -WW Rate Incicase12014-18 ENR W-MV-so€id Waste 218 notice FxA f3 cioc
Exhibit G
City of Lodi
('Parent and Prnnnsed Flat Water Rates
Notes:
(1) fulul(i-family includes duptexes, triplexes, Fourplexes, apartn ents, and corndominn}ms.
City of Lodi
Future Rate Ceiling
W
Current
and Propose
I Flat
Wastewater
Rates
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan. 2013)
(Jan. 2014)
(Jio.2015)
(Jon. 2016)
(Jan. 2017)
(Jan.
201a)
(Jan. 20191
Rate Increase
>
2.5%
3.0%
Pate Ceiling
3.01/0
3.0%
3.0%
3.0%
FLAT RATES
Current
Proposed
Proposed
Proposed
Proposed
Single Ramily Residential
____
(Jul. 20131
, 2014)�
dui.
2015}
(Jtrl. 2011G)
� il_2017)
(Juf.
2013
1 Bedroom
S 29.90
$ 30.65
S 31.57
$
32.52
$ 33.50
W
34.51
$ 35.55
2 Bedroom
$ 35.91
S 36.81
S 37.91
$
39.05
$ 40.22
5
41.43
S 42.67
3 Bedroom
S 43.04
$ 44.12
4-5.44-
$
46.80
$ 48.2.0
S
49.65
S 51.14
4 Bedroom
S 51.72
$ 53.01
S 54.60
$
56.24
S 57.93
S
59.67
S 61.46
5 Bedroon-i
S 62.03
S 63.58
S 65.49
S
67.45
$ 69.47
S
71.55
$ 73.70
6 Bedroom
S 74.44
$ 76.30
S 78.59
$
80.95
$ 83.38
S
85.88
$ 88.46
Multi -Ramify (1)
43.05
$ 44.34
$
45.67
$
47.04
$
48.45
$
1 Bedroom
$ 25.67
S 2631
$ 27.10
$
27.91
S 28.75
$
29.61
$ 30.50
2 Bedroom
% 30.79
$ 31.56
S 32.51
S
33.40
$ 34.49
$
35.52
S 36.59
3 bedroom
$ 36.94
S 37.86
$ 39.00
$
40.17
$ 41.38
$
42.62
$ 43.90
4 Bedsoorrr
S 44.32
$ 45.43
$ 46.79
$
18.19
$ 49.64
S
51.13
S 52.66
Mobile Homes
S
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Any Size
S 25.67
$ 26.31
S 27.10
$
27,91
$ 28.75
S
29.61
$ 30.50
Non -Residential
25.83
S 2.6.60
S
27,40
5
2.8.22
$
29.07
$
i,xisting unmetereri
Varies
+2.5%
+3.0%
$ 35.47
1-3.0%
4.3.0%
$
+3A%
F'3.0%
Notes:
(1) fulul(i-family includes duptexes, triplexes, Fourplexes, apartn ents, and corndominn}ms.
Notes:
0) Proposed flat uastew8ter rr les ?or scfiogfs are to be determined an the basis of 18 student per SSU
City of Lodi
Current
and Propose
I Flat
Wastewater
Rates
LFuture
Pate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
____
(Jul. 20131
, 2014)�
dui.
2015}
(Jtrl. 2011G)
� il_2017)
(Juf.
2013
Rate Increase
3.0%
3.0%
3,0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
5
25.83
$ 26.60
$
27.40
5
28.22
$
23.07
S
29.94
2 Bedroom
$
34.44
$ 35.47
$
36.53
S
37.63
S
38.76
S
39.92
3 Bedroom
$
43.05
$ 44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 BedrooiTr
S
51.66
$ 53.2.1
$
54.81
S
56.45
S
58.14
S
59.88
5 Bcdroorn
S
60.27
S 62.08
S
63.94
$
65.86
$
67.84
$
69.88
6 Bedroom
$
68.88
$ 70.95
$
73.08
$
75.27
$
77.53
$
79.86
7 Bedroom
S
77.49
$ 79.81
S
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Condominiums
1 Bedroom
S
25.83
S 2.6.60
S
27,40
5
2.8.22
$
29.07
$
29.94
2 Bedroom
$
34.4-4
$ 35.47
$
36.63
$
37.63
S
38.76
S
39.92
3 Bedroom
S
43.05
S 44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 BQdroorn
S
51.66
S 53.21
$
54.81
$
56.45
S
58.14
$
59.88
Mobile Hordes
Any Size
$
25.83
$ 26.60
$
27.40
$
28.22
S
29.07
S
29.94
Non-Residentiai (f)
Per SSU
$
34.44
$ 35.47
S
36.53
$
37.63
S
38.76
$
39.92
Notes:
0) Proposed flat uastew8ter rr les ?or scfiogfs are to be determined an the basis of 18 student per SSU
City of Lodi
Currant and Proposed Usnoc-13asnd Witer Rates
-__ _._
Futnre Rate Ceiling
W - Current --Proposed r1o,Osed Proposed Proposer! Proposed Proposed Proposed
_flan. 2013} fan. 2014 Jan. 201QI flan. 2015 Jatl, 1.016 Jan, 2047 Jan, 2918 Ja .7.019
RateIncreasa -> 2.51/k19) 135 1.01/6(4) 3.0% t4) 3.0% 3.0% 3,0
USAGE -BASED RATES
t✓lorrthl y Service Charge
Monthly Service Charge
lin 3!e 1= lmily (per OU) S 23L24.98$
24.23
S 24.98
S
25,71
26.48
5 27.27
MuiG-f iamlly ar:d Non RosiduiiIial (i }
Single Family
Up to 314" Tooter
$ 24.23
S 24,96
S
25.71
S
26.48
$ 27.27
1" rncttclr
5 38.83
S 39.99
$
41.19
Up to 314" miler
5 23.78
$
2-1.;§7
S
23,26
S
22.80
S 21.65
5
22.30
S
22.97
5
23.66
1" me ler
5 38.60
S
39 57
S
37.;16
5
38.28
S 34.01
S
35.03
5
36.06
S
37.16
1 iU" rneler
S 7 5.4 2
S
77.31
S
'72A5
S
6q.(13
S O4 -,2
S
66.5(1
S
(38.56
S
70.62
2"meter
$ 119-7<j
S
122.78
s
'114.71
S
108-64
$ 1015Y
$
3(1:51
5
W7.71
S
110.94
multi -Family and NcneRrsi(frniiai (1)
$ 2.84
S
2.93
S
3.02
$ 3.11
Mtilti Farnily (2)
2.16
$ 2,84
$
2.93
$
3.02
Up tc 3I4" rneler
S 23.78
$
24.37
S
23.26
S
22,80
5 21.65
$
22.30
5
22.97
S
23.66
1"meter
S 38.1'10
5
39,57
5
373e
S
36.26
5 34.01
S
35.03
$
36.08
S
3 7. 16
1 112" meter
S 1;(1.'24
S
61,75
;
52.08
S
64.26
5 64.(2.
S
$fist;
Plow (per MG annually) $ 3,487.41
68.58
S
70,67
2" meter
S 75,27
S
77.15
$
84.29
I
94 17
5 101,52
S
10,1-57
S
107.71
$
11034
3" meter
c 105.38
S
loir.01
S
1 7
S
162.16
S 187.65
S
193,26
S
199.08
S
205.05
•4" rneler
13:5.;11
S
138.90
193.14
S
254.136
S 310.67
S
;319.99
t
329.59
S
;39.48
G' meter
> 195 Fig
S
200 57
333,69
S
480.62
5 617.94
S
fi)M 48
S
655.57
S
675.2.4
8"rneler
'2..5591
5
2 62. 31
S
494.23
3
747,94
S 986.82
$
1,01(142
$
1,016.91
{
1,073.32
10"nlnter
5 3160'!
5
323.91
5
fii4-Cit
$
1,056,08
S 1,417.30
S
1,45:1.$2
$
1,50'3.61
S
Usage Rates (SICCF)
Single Family
'flee l (0-10 cc1)
5 0,92
S
0,94
5
0.94
S
037
S 0-96
;
0,99
5
1.02.
5
1.05
I ier 2 (1150 CCF-)
S 1.38
S
1.41$
M1.35
a
1.27
S
1.31
S
1.35
1.39
Tier 3 (>50 CCF)
S 1.62
5
1 57
S
1.76
S
7.70
S 1.5y
$
1 134
S
1-69
S
'l 74
tlMulli-f=amily and Noli-Presidential
(1)
All w-itor usage
5 032
S
0.94
S
1.00
S
I.OE3
S 1.14
$
1.17
$
1.21
5
1.'211
_.___�_-......-._-------I
Notes:
�-.._-._......._...-__..._.___.__._
-_........__-.._-__.._--_.._..-
(1) Multi -family includes ru;
Errs, Eriplexc
i, icurplexes,
apartments,
condominiums,
and
rnobile home.
parks.
(2) 1 h3S u'diL(Il1if2 jocill{ieS the pi opOsed lndexlnq
of 2.5
percont, with no ratc, strllclure
chanrges.
(3) chis rifle sc: is idle is revenw1
ncL jlral relative to the proposed
newly
Ir Joxnd
Jarlliary
2014 W8 Wr fates,
bbl iflCkldf.n
thtf beginning of the
Proposed .3-yaflr ohiscd
Olanges t0 Oin
rale
slfu Gturg,
(41 1I1L'se fele schedules relloct
the sec=ond
and Ihjf(I y0or 6f
Olu 3 -Yom
rate
SWClule,
phssioty, its Well
as
the r: ax1imin)
pownlial
mit
adjustrOEM1 uuc to 'ENR
indcxinn.
the IientI C, mur., Ir: c.
101?3113
City of Lodl
Current and Proposed �3ac.3C-E3aseti INa SteY
-u2-01-4--,(---I
-.___.___. -- Future Rate Ceiling ------
Current Proposed Proposed Proposed Proposed Proposed
(Jul. 2013) _-rJul, 2014 fJ(1.20151 iSiil. 29161 Jul. 2017) fJuE. 20181
fZate Increase --> 3.0% 3.0% 3.01/ 3.0% 3.0 % 1
USAGE -BASED RATES
t✓lorrthl y Service Charge
lin 3!e 1= lmily (per OU) S 23L24.98$
24.23
S 24.98
S
25,71
26.48
5 27.27
MuiG-f iamlly ar:d Non RosiduiiIial (i }
Up to 314" Tooter
$ 24.23
S 24,96
S
25.71
S
26.48
$ 27.27
1" rncttclr
5 38.83
S 39.99
$
41.19
S
42.43
$ 43.70
1 112" me=ter
$ 75.03
$ 77.28
S
79.60
S,
81.99
$ 84 45
2" rneEcr
5 118.63
g, 122 19
$
125.86
S
129.64
$ 133.53
3" meter
$ 220.45
227,06
$
233,87
S;
240.69
5 248.12
4" meter
S 365.86
5 376,86
$
388.17
34313.82
5 411 81
o" rlleter
$ 729) 12
750,99
S
773.52
$
796.73
$ $2.0.63
B" fneter
5 1,165 18
S 1,200.14
$
1,236.14
,5
1.2.73.22
S 1,311 42.
Usage Rates ($A;CF)
Single Famti y {2; 5 2.68
$ 2.76
$ 2.84
S
2.93
S
3.02
$ 3.11
Mtilti Farnily (2)
2.16
$ 2,84
$
2.93
$
3.02
$ 3.11
Non-Resufentlai (2) (3)
Law Strength
$ 2.76
$ 2.84
$
293
$
3.02
S 3.11
kludiurn Stwon lth
$ 3.45
$ J-55
$
3.66
3.77
$ 3.88
high .Strength
$ 4.49
$ 4.62
$
4.76
S
4,90
S 5.05
lndustriai { 4 )
Plow (per MG annually) $ 3,487.41
$ 3,592.03
$ 3,693.79
$
3,810,78
$
3,925.10
$ 4,042.83;
6013 (per 1,000 Nos annually) $ 575.51
S 592..75
S 610.56
5
1328.138
a
647.75
$ 667 18
SS (per 1.000 !hs annually) $ 359.135
S 370 G5
$ 381-77
$
393 22_
$
405.02
$ 411.17
Notes_---._--___...._.��_
f 1 } PAuiti family irtclutfes duplexes, triplexes, rouri}fexes,
apaftnoeots.
condorrlinium8.
and mob'lic
I)OMO
flark5.
(2) uw)ge 0l-3rgc Jnsc r, orl WIntur Water EISo delermined
as the 3Vefauo
frUm ir)e
prior
Decomb£?f-f-Y.OiUary
p¢IrPd
Adjusted aich ,tally for aaCll aCCOunI
(:3J Placeholderhese,, rates not yet in use.
{4) Appllp_s to irldllSFl iBi users dischargrnq 'into the lorlcStic
Sewol
Sy5lilcm-
rhe, Reed Group, it.,: ;0323113
Exhibit E
CITY OF LODE
COMMERCIAL COMPACTOR RATES
EFFECTIVE JANUARY 1, 2014 TO APRIL 1, 2014
Service
1X Week
2X Week
3X Week
4X Week
5X Week
2 Cubic Yard Compactor
$
284.18
$
569.56
$
854.34
5
1,139 12
$
1,423.90
3 Cubic Yard Compactor
$
351.88
$
703.76
$
1,055.64
$
1,407.52
$
1,759.40
4 Cubic Yard Compactor
$
41.9.52
$
839.04
$
1,258.56
$
1,678.08
$
2,097.60
CERTIFICATE OF MAILING
NOVICE OF RATE SETTING, PROPOSED RAVE INCREASE & PUBLIC HEARING DATE
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 October 31, 2013, 1 caused to
be mailed a Notice of Rate Setting, Proposed Rate Increase & Public Hearing Date to all water,
wastewater and solid waste 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 November 4, 2013.
PAMELA FARRIS
Exhibit AI
Proposition 21.8 Notification and )nearing Process
The Lodi City Council will consider proposed water, wastewater and contracted solid
waste rate increases at a public hearing at 7:00 p.m., Wednesday, December 18, 2013, at
the Carnegie Forum, 305 West fine Street, Lodi.
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 hearing. If a maiority of
the property owners file oppositions to the increase, the increase will not take effect.
Property owners and renters who pay their water, wastewater or contracted solid waste
bill may file a written and signed protest against the proposed increases with the
City Cleric at or before the close of the public hearing. A protest must contain a
description of the property owned sufficient to identify the property, The address or
assessor's parcel number is shown on this mailing,
If you own (or rent and pay a city utility bill) on more than one parcel, you may file a
single 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 .Joaquin County as the
owner of the property or on the utility account, the signer of the protest must also submit
written evidence of ownership or rentership and utility bill responsibility.
The City of Dodi proposes to increase all water and wastewater rates by an amormt up to the
percentage increase in the annual average of the Engineering News Record (20 cities
average) Index ("ENR"), as of•September 30 (water) and March 31. (wastewater) ofeach
year from 2011 through 2018. The City of Lodi also proposes to increase contracted solid
Waste charges by the annual change in the Consumer price Index for All Urban Consumers
for San Francisco -San .lose California Area All Items (1982-84-100) published by the
Bureau of Labor Statistics ("CPI") as of December 31 of each year from December 31, 2013
through December 31, 2017. The water and wastewater increases shall not exceed three
percent (3%) per year. The ENR and CPI based increases will be implemented as needed to
pay for inflation -based increased costs of providing; water, wastewater and contracted solid
waste services. The new ]SNR/CPI based rates are not reflected in an exhibit at this time
because they are dependent upon performance of the IBNR/CPI.
The City also proposes to institute new rates for installation of ineters over 3/4 of an inch
as set forth in the attached rate table entitled Exhibit A Meter Charge Schedule; establish
a new vacant unit rate as set forth in the attached rate table entitled lsxhibit 13 Vacant Unit
Rate; approve new flat rate water and wastewater rates as set fbrth in the attached rate
tables entitled Exhibit C Current and Proposed Flat Water Rates and Flat Wastewater
Rates; and restructure rates for single-family residential, multi -family and non residential
as further described in the attached rate table entitled Exhibit D Current and Proposed
Usage Based Water Rates and Usage Based Wastewater Rates. Single-family residential
rates are based on three increasing tiers as the ratepayer's water usage increases.
Non-residential and multi -family residential only have one tier beCalise they do not
typically have discretionary water uses. Utrder the current structure, that single tier
equals the rate paid by residential in the lo%A'est first tier. The rate restructure will
increase the single tier for multi -family and non-residential rates to the weighted average
of the multiple tier rates and reduce the multiple tier rates for single -family residential by
the sane amount to achieve better equity between the rate classes. "The current
commercial contractor rates for solid waste are shown in Exhibit E and will be adjusted
for CI11 changes as provided in the next paragraph.
It is currently proposed that the ENR and CPI based adjustrnents will take place for five
one-year periods beginning in the first year on February 15, 2014 (water), July 1, 2014
(wastewater), and April 1, 2014 (solid waste) and on January I (water), July 1
(wastewater) and April 1 (solid waste) every year thereafter through 2018. It is also
currently proposed that the rate restructuring, vacant unit rate and meter installation rate
for meters exceeding 1/4 inch will take place on February 15, 2014. At the public hearing,
Council shall hear all protests and tabulate the ballots. One written protest per parcel,
filed by the owner or tenant (paying the utility 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 XIII D of the California Constitution. I#.the votes conflict, the
City will count the no vote.
Written protests may be mailed to:
City of Lodi
Attn: City Clerk
13 0. Box 3006
Lodi, CA 95241-1910
Written protests may also be delivered in person to the City Clerk, 221 West Pine Street,
Lodi, or at the public hearing,
`rhe rate increases are being proposed in order to provide fending for system
improvements, operations and maintenance, and administrative expenses related to the
water, wastewater and contracted solid waste systems, and provide funding to meet
inflationary costs of operating the utilities for the next five years.
The new ENR and CPI based rates will be calculated by increasing the then existing rate
in each of five }rears starting in 2014 by the prior ),car's increase in the ENR or CPI but
not to exceed 3% for water and wastewater. Staff-s recommended rate for the meter
installation over -/4 of an inch is calculated as the City's acts€al contracted cost to purchase
the teeter plus 55 percent to cover a portion of the installation cost and is presented in
column 2 of the Exhibit A Meter Charge Schedule. The vacant rate is calculated as the
monthly base charge for water or wastewater. "1The rate restl'uctrn-ing is calculated by
increasing the single tier for multi-family and non-residential by the weighted average of
the multiple tier rate and decreasing all of the single -family rates by the exact amount of
the revenue that the increase to multi-family and nonresidential is projected to generate.
If you have any questions about this notice, please call the Public Works Department
at (209) 333-6706 between 7:30 a.m. and 5:30 p.m., Monday through "Thursday, and
between 8:00 a.m. and 5:00 p.m. on Friday, November 8 or December 6,
RANDI 301 IL-OI_SON, City Clerk
City of Lodi
Exhibit A
Meter Charge Schedule
Meter
Size
Recommended
Capacity
Based
Installed
Cost
(Contractor
Prices
Lodi Fee
Schedule
Santa
Clara
Fee
Schedule
No
Charge
Price
Based
Cost x 1.55
3/
$300
$300
$940
$400
$370
_
$0
1
W� $350
$500
$1,420
$480
-T $365
$0
1 '/
$780
$1,000
$3,810
$745
$1,565
$0
2
$970
$1,600
$5,720
$930
$1,730
$0
3
$1,980
mm$3,000
95
$5,0_
NIA
$2,065
$0 ..__
4
$3,570
$5,000
NIA
NIA
_ $4,130
6
$_6,760
$10,000
NIA
NIA
$6,750 m
$0
8
$11,520
--$16,000
NIANIA
--
$10,670
$0.._-._..__
Exhibit B
Vacant Unit Rate
a Flat rate residential customers -- monthly service charge for a 3/ inch meter
e Metered residential customers — no vacant utility rate
® Master metered multi -family — no vacant utility rate
s Metered multi -family unit -- no vacant utility rate
® Monthly service charge will reduce with conservation pricing
KAWP1UTILITY RATESIW V1 M2014 VV -WW Rate Inciease12014-18 ENR W -WW -solid Waste 218 notice CxA B.doc
Exhibit C
City of Lodi
c' --f -1 iJrn nnCAr'I F3af Wafer Pnf}
Notes.,
(1) Mufti -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
City of Lodi
Current and
(Juf.
Current
2013
Proposed Proposed
(Jul- 2014) (Jul. 2015)
Future Rate Ceiling
Proposed
(Jul. 2017)
Proposed
(Jul. 2018)
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
FLAT RATES
Jan.2013)
Jan.2014
Jan, 2015
Jan. 2016
(Jan. 2017)
((Jar). 201t
Jan.2019
Rate Increase -->
2.50%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
1 Bedroom
$
25.83
$ 26.60
$
Single Family Residential
$ 28.22
$ 29.07
$ 29.94
2 Bedroom
$
34.4-4
$ 35.47
1 Bedroom
$ 29.90
$ 30.65
$ 31.57
$ 32.52
$ 33.50
$ 34.51
$ 35.55
2 E3edroom
$ 35.91
$ 36.81
$ 37.91
$ 39.05
$ 40.22
$ 41.43
$ 42.67
3 Bedroom
$ 43.04
$ 44.12
$ 45.44
$ 46.80
$ 48.20
$ 49.65
$ 51.14
4 Bedroom
$ 51.72
$ 53.01
$ 54.60
$ 56.24
$ 57.93
$ 59.67
$ 61.46
5 Bedroom
$ 62.03
$ 63.58
u 65.49
$ 67.45
$ 69.47
$ 71.55
$ 73.70
6 Bedroom
$ 74.44
$ 76.30
$ 78.59
$ 80.95
$ 83.38
$ 85.88
$ 88.46
Multi-Famiiy (1)
$ 89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Condominiums
1 Bedroom
$ 25.67
$ 26.31
$ 27.10
$ 27.91
$ 2B.75
$ 29.61
$ 30.50
2 Bedroom
$ 30.79
$ 31.56
$ 32.51
$ 33.49
$ 34.49
$ 35.52
$ 36.59
3 Bedroom
$ 36.94
$ 37.86
$ 39.00
$ 40.17
$ 41.38
$ 42.62
$ 43.90
4 Bedroom
$ 44,32
$ 45.43
$ 46.79
$ 48.19
$ 49.64
$ 51.13
$ 52.66
Mobile Homes
$ 55.45
$ 58.14
$ 59.88
Mobile Homes
Any Sire
$ 25.67
$ 26.31
$ 27.10
$ 27.91
$ 28.75
$ 29.61
$ 30.50
Non-Residentiat
$
27.40
$ 28.22
$ 29.07
$ 29.94
Non -Residential (1)
Existing unmetered
Varies
+2.5%
+3.0%
+3.0%a
+3.0%
+3.0%
+3.0%
Notes.,
(1) Mufti -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
City of Lodi
Current and
Notes: _
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU
(Juf.
Current
2013
Proposed Proposed
(Jul- 2014) (Jul. 2015)
Proposed
(Jul. 2010)
Proposed
(Jul. 2017)
Proposed
(Jul. 2018)
Elate Increase -
3.0%
3.0%
3.0%
310%
3.0%
FLAT RATES
_
Single Family Residential
1 Bedroom
$
25.83
$ 26.60
$
27.40
$ 28.22
$ 29.07
$ 29.94
2 Bedroom
$
34.4-4
$ 35.47
$
36.53
$ 37.63
$ 38.76
$ 39.92
3 Bedroom
$
43.05
$ 44.34
$
45.67
$ 47.04
$ 48.45
$ 49.90
4 Bedroom
$
51.66
$ 53.21
$
54.81
$ 56.45
$ 58.14
$ 59.88
5 Bedroom
$
60.27
$ 62.08
$
63.94
$ 65.86
$ 67.84
$ 69.88
6 Bedroom
$
68.88
$ 70.95
$
73.08
$ 75.27
$ 77.53
$ 79.86
7 Bedroom
$
77.49
$ 79.81
$
$2.20
$ 84.67
$ 87.21
$ 89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Condominiums
1 Bedroom
$
25.B3
$ 26.60
$
27.40
$ 28.22
$ 29.07
$ 29.94
2 Bedroom
$
34.44
$ 35.47
$
36.53
$ 37.63
$ 38.76
$ 39.92
3 Bedroom
$
43.05
$ 44.34
$
45.67
$ 47.04
$ 48.45
$ 49.90
4 Bedroom
$
51.66
$ 53.21
$
54.81
$ 55.45
$ 58.14
$ 59.88
Mobile Homes
Any Size
$
25.83
$ 26.60
$
27.40
$ 28.22
$ 29.07
$ 29.94
Non -Residential (1)
Per SSU
$
34.44
$ 35.47
$
36.53
$ 37.63
$ 38.76
$ 39.92
Notes: _
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU
lrxr�lalT n
City of Lodi
Current and Proposed Usana•Based WaterRatos
Notas-
(1) MUN-fancily includes duplexes, Triplexes, fourplexes, apadmenis, condominiums, and mobile home parks.
(2) This schodrrle includes the proposed indexing of 2.5 percent, with Ro rale stnrcturn changes.
(3) 'rhis rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, brrl includes the beginning of lire
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rale structure phasing, as well as the maximum polenrial rale
adjusunent due to ENR indexing.
'The, Reed Croup, Inc.
City of Lodl
Current and Proposed Usadc-Based Wastewater Rates
10/2312
Future Efate Ceiling
Futuro state Ceiling___
Current
Proposed
Proposed
Proposed
Proposed
Proposed
_
2013)Jtr1.2014_J{
u1.201on_(Ju1,2016)
(Ju1,2017j_Ju1.2018)
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Jan. 2013
Jan. 20#A
(Jan. 0161
2015
(Jan. 2016)
(Jan. 201 J7
Jan, 2018)
149n_2019J
_ Rate Increase -->
2.5%(2).01/614J
Single Family (per DU)
$ 23.92
3,0%
3.0%
3.0%
USAGE -BASED RATES
$ 27.27
Multi -Family and Non -Residential (1)
Up to 314" meter
Monthly Service Charge
$ 24.96
$ 25.71
$ 26.48
$ 27.27
1" meter
$ 38.83
S 39.99
$ 41.19
Single Family
$ 43.70
1 112." meter
$ 75.03
$ 77.28
S 79.60
$ 81.99
$ 84.45
2" meter
Up to 314" mater
S
23.78
$ 24.37
S 23.26
$ 22.80
S 21.65
$ 22.30
$ 2297
$ 23.66
1"meter
$
38.60
$' 39.57
$ 37.38
$ 36.26
S 34.01
$ 35.03
$ 36.08
$ 37,16
1 1/2" meter
$
75.42.
S 77.31
$ 72.45
$ 69.63
S 64.82
$ (36.56
S 68.56
$ 70.62
2" meter
$
119.79
S 122.78
$ 114.71
$ 109.84
S 101.52
$ 104.57
$ 107.71
$ 110.94
Mult€-Family and Non -Residential (1)
Single Family (2)
$ 268
$ 2.76
$ 2.84
$ 2.93
$ 3.02
$ 3,11
Up to 314" meter
$
23.70
$ 24.37
5 23.26
$ 22.80
S 21.65
$ 22.30
$ 22.97
$ 23.66
1" meter
$
38.60
5 39.57
S 37.38
S 36.26
$ 34.01
$ 35.03
$ 36.06
$ 37.16
1 112" melor
S
60.24
$ 61.75
$ 6208
$ 64,28
$ 64.62
$ 66.66
$ 68,56
$ 70.62
2" meter
S
75.27
S 77.15
$ 84.29
$ 94.17
S 101.52
$ 104.57
$ 107.71
$ 110.94
3" meter
$
105.313
S 108.03
S 132.74
S 162.18
$ 167.65
$ 193.28
$ 199.06
$ 205.05
4" meter
$
135,51
S 138.90
$ 193,14
$ 254.80
$ 310.67
S 319.99
$ 329.59
$ 339.46
0" meter
S
195.68
S 200.57
R 333.69
$ 480.82
S 617.94
$ 636.48
$ 655.57
$ 675.24
6" meter
S
255.91
S 262.31
$ 494.23
$ 747.94
$ 988.82
$ 1,016.42
$ 1.0413.91
$ 1,078.32
10" meter
S
3't 6.01
$ 323.91
5 674.61
S 1,056.08
S 1,417.30
S 1,459.82
$ 1,503.61
$ 1,548 72
Usage Rates (S/CCF)
Single Family
'tier 1 (0-10 CCF)
$
0.92
$ 0.94
5 0.94
$ 0.97
S 0.96
$ 0.99
$ 1.02.
$ 1.05
Tier 2 (11.50 CCF)
$
1.38
$ 1,41
$ 1.35
$ 1.33
5 1.2.7
$ 1.31
$ 1.35
$ 1.39
Tier 3 (>50 CCF)
S
1.82
$ 1.67
$ 1.76
S 1 70
$ 1.59
S 1,64
$ 1.69
$ 1.74
Multi -Family and Non -Residential
(1)
All water usage
$
0.92
S 0.94
S 1.00
S 1.09
S 1.14
$ 1.17
$ 1.21
$ 1 2
Notas-
(1) MUN-fancily includes duplexes, Triplexes, fourplexes, apadmenis, condominiums, and mobile home parks.
(2) This schodrrle includes the proposed indexing of 2.5 percent, with Ro rale stnrcturn changes.
(3) 'rhis rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, brrl includes the beginning of lire
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rale structure phasing, as well as the maximum polenrial rale
adjusunent due to ENR indexing.
'The, Reed Croup, Inc.
City of Lodl
Current and Proposed Usadc-Based Wastewater Rates
10/2312
Notes: _
(1) Multi family inctudos duplexes, triplexes, fourplexes, apartments, condorrrhiiumS, and mobile home parks.
(2} Usage charge based on winter water use delermined as the average from the prior Deco mber-February period.
Adjusted oach July for each account.
(3) Plaecholder. These rates not yet in use.
(4) Applies to industrial user$ discharginq into the domestic sewer system.
I he Reed Group, Inc. 10/23/13
Future Efate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
2013)Jtr1.2014_J{
u1.201on_(Ju1,2016)
(Ju1,2017j_Ju1.2018)
Rate Increase -___3,0%
3.0%
3.0%
3.0%
3,0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$ 23.92
$ 24.23
$ 24.96
$ 25,71
$ 26.48
$ 27.27
Multi -Family and Non -Residential (1)
Up to 314" meter
$ 24.23
$ 24.96
$ 25.71
$ 26.48
$ 27.27
1" meter
$ 38.83
S 39.99
$ 41.19
$ 42.43
$ 43.70
1 112." meter
$ 75.03
$ 77.28
S 79.60
$ 81.99
$ 84.45
2" meter
$ 118.63
$ 122.19
$ 125.86
$ 129.64
$ 133.53
3" meter
$ 2.20.45
$ 227.06
$ 233.87
$ 244.89
$ 248.12
4" meter
$ 365.88
$ 376.86
$ 388.17
$ 399.82.
$ 411.81
6" meter
$ 729.12
$ 750.99
$ 773.52
$ 796.73
$ 820.63
8" meter
$ 1,165.16
$ 1,200.14
$ 1,236.14
$ 1,273.2.2
$ 1,311.42
Usage Rates ($/CCF)
Single Family (2)
$ 268
$ 2.76
$ 2.84
$ 2.93
$ 3.02
$ 3,11
Multi family (2)
$ 2.76
$ 2.84
$ 2.93
$ 3.02
$ 3.11
Non -Residential (2) (3)
Low Strength
$ Z. 6
T 2.84
$ 2,93
$ 3.02
$ 3.11
Medium Strength
$ 3.45
$ 3.55
$ 3.616
$ 3.77
.$ 3.738
High Strength
$ 4.49
$ 4.62
$ 4,76
$ 4,90
$ 5.05
Industria! (4)
Flow (per MG annually)
$ 3,487.41
$ 3,592.03
$ 3,699.79
$ 3,810.78
$ 3,925.10
$ 4,042.85
BOD (per 1,000 lbs annually)
$ 575.51
$ 592.78
$ 610.56
$ 628.88
$ 647.75
$ 667.18
SS (per 1,0001hs annually)
$ 359.85
$ 37065
$ 381.77
$ 393.22
$ 405.02
$ 417.17
Notes: _
(1) Multi family inctudos duplexes, triplexes, fourplexes, apartments, condorrrhiiumS, and mobile home parks.
(2} Usage charge based on winter water use delermined as the average from the prior Deco mber-February period.
Adjusted oach July for each account.
(3) Plaecholder. These rates not yet in use.
(4) Applies to industrial user$ discharginq into the domestic sewer system.
I he Reed Group, Inc. 10/23/13
Exhibit E
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE JANUARY 1, 2014 TO APRIL 1, 2014
Service
1X Week
2X Week
3X Week
4X Week
5X Week
2 Cubic Yard Compactor
$ 284.78
$ 569.56
$ 854.34
$ 1,139.12
$ 1,423.90
3 Cubic Yard Compactor
$ 351.88
$ 703.76
$ 1,055.64
$ 1,407.52
$ 1,759.40
4 Cubic Yard Compactor
$ 419,52
$ 839.04
$ 1,258.56
$ 1,678.08
$ 2,097.60
United States Postal Service Processed By: PSI on 10/31/13 06:51:53 PM
Postage Statement Standard Mail
Transaction Number:
CAPS Transaction Number:
Postage Statement Number:
201330420515304 M1
2013103120515300M1
173976664
CL
Mailing Group ID
Mailing Job Number
Open Date
0
126927120
10-31 2013
Preparer
Origin
Close Date
a'
PRESORT CENTERPSW
- USPS Entered
10-31-2013
�
Job Description
Permit Holder's Name and Address and Email Address, if Any Name and Address of Mailing Agenl Name and Address of Individual or
(if other than permil holder) organization for Which Mailing ks Prepared
PRESORT CENTER (If other than pear if holder)
3806 CORONADO AVE # A PRESORT CENTER
STOCKTON, CA 95204-2314 3806 CORONADO AVE A CITY OF LODI
Contact Name: ANGELA STOCKTON, CA 95204-2314 125 S HUTCHINS ST
(209)941-2467 LODI, CA 95240-3469
75-
customeroaro a@pre-sort.com CRID: 5172678
CR0: 3780040
CRID: 5172578
Post office of Mailing Processing Category Mailer's Mailing Dale Federal Agency Cost Code Statement Seq. No. No. & Type of Containers
STOCKTON CA 95213-9998 Letters 10/31/13 14817C
Type of Postage Weight of a Single Combined Mailing Total it of Pieces in Sacks: 0
Permit Imprint niece Mailing 1 ft. Letter Trays: 53
0.0425 lbs. 31,778 2 ft. tetter Trays: 78
0)
EMM Letter Trays: 0
�
—
�'olal Weight
1350.5650 lbs. Flat 'frays:0
---..._Pallets:0
�
Permit It
For Mail Enclosed Within Another Class
For Mail Enclosed Wilkin Another Class
Other: 0
269
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[ ]Mailpiece is a product sample.
% Sarn I-
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For Automation Rate Pieces, linter Dale
For Carrier Route Pieces. Enler Date
For Carrier Route Pieces, Enter nate of
For Pieces Bearing a Simplified Address Fn [or
of Address Matching and Coding
of Address Matching and Coding
Carrier Route Sequencing
Date
10/29/13
10/29/13
10/29/13
of Delivery Statistics File or Alternative Method
1 1
Move Update Melhod',
NCOALink
Par's CoLttmpileted A B� _—__
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Add_�s totars)
$5,144.81
NO
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procanceled stamps, PCs. X $ = Postage AIlAffixed
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$0.00
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Correct Lowest Neither
Incentive/Discount
$0,00
Fee _..__._.
$0.00
Net Postage Due
$5,144.81
For USPS Use Only: Additonal Postage Payment (State reason)
Total USPS Ad'usted Posta a $5,144.81
Incentive/Discount CEaimed: NIA Type of Fee: N/A
O
U
The mailer certifies acceptance of liability for and agreement to pay any revenue deficiencies assessed on this mailing, subject to appeal. if an
1-
agent certifies that he or she is authorized on behalf of the mailer then that mailer fs hound by the certification and agrees to pay any
deficiencies. In addition, agents may be liable for any deficiencies resulting from matters within their responsibility, knowledge, or control. The
U
mailer hereby Certifies that all information furnished on this form is accurate, truthful, and complete; that the mail and the supporting
documentation comply with all postal standards and the mailing qualifies for the prices and fees claimed; and that the mailing does not contain
any matter prohibited by law or postal regulation. I understand that anyone who furnishes false or misleading information on this form or who
omits information requested on (his form may be subject to criminal andlor civil penalties, including fines and imprisonment.
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This postage statement was verified and accepted under the PostalOne! program. No postal signature or round stamp is required.
PS Form 3602-R (Page t of 2.)
Fart A
Automation Letters
Letters 3.3 oz (0.2063 lbs) or less
Entry Price Price
Category
No. of Pieces Subtotal Postage Discount Total` Pee Total Total Postage
A2
None
3 -Digit
-
$0.266
734
$1'95.2440
$0.0000 $0.0000 $195.2440
A3
None
AADC
$0.266
..__..� 283
$75.2780
_.. $0.0000 $0,0000 $75.2780
A4
None
Mixed AADC
l
$0282
880
mm- $248,1600
$0.0000 $0.0000 $248.1600
A9
DSCF-
5 -Digit
$0.204
2,107
W
$429.8280
$0.0000 $0.0000 $429.8280
-
A10
DSCF
3 -Digit
$0.223
1,051
$234,3730
-- $0.0000 $0.0000 $234.3730
Part A Total (Add lines A 1 - A22) $1,18288
May contain both Full Service Intelligent Mail and other discounts,
Part B
Nonautomation Letters
Machinable Letters 3.3 oz (0.2063 lbs) or less
Entry Price Price No. of Pieces Subtotal Postage Discount Total Fee Total Tota! Postage
Category
131
None AADC $0.274
8
$2,1920
$0,0000
$0.0000 $2.1920
B2
None Mixed AADC $0.290
26
$7,5400
$0.0000
$0.0000 $7.5400
B5
DSCF AADC $0.231
270
$62,3700
$0.0000
$0.0000 $62.3700
Part B Total (Add lines B1 - £327) $72A
Part C
Carrier Route Letters
(Automation) Letters 3.3 oz. (0.2063 lbs.) or less
Entry Price Price No. of Pieces Subtotal Postage Discount Total` Fee Total Total Postage
Category
C1
None
Saturation
$0.189
131 $24.7590 $0.0000
$0.0000
$24.7590
C4
None
Basic
$0.279
139 $38.7810 $0.0000
$0,0000
$38.7810
C9
DSCF
Saturation
$0.146
25,296 $3,693.2160 $0.0000
$0.0000
$3,693.2160
C10
DSCF
High Density
$0.156
853 $133.0680 $0.0000
_ $0.0000
_T $133.0680
....... .. - --
Part C Total (Add lines C1 - G60) E$3,889.82
May contain both Full Seivice Inlelligent Mail and other discounts,
This postage statement was verified and accented under the PostalOne! program. No postal signature or round stamp is required.
PS Form 3602-R (Page 2 of 2)