HomeMy WebLinkAboutMinutes - July 14, 2009 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JULY 14, 2009
The July 14, 2009, Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council
was canceled due to the lack of a quorum.
Informal Council Sub -Committee Meeting
Upon cancellation of the July 14, 2009, Informal Informational Meeting ("Shirtsleeve" Session), an
informal sub -committee of the City Council, consisting of Mayor Hansen and Council Member
Johnson, met at approximately 7:15 a.m. to receive general information regarding the water
meter program. The minutes are as follows:
Public Works Director Wally Sandelin provided a PowerPoint presentation regarding the water
meter program. Specific topics of discussion included policy review, estimated costs in May 2007,
estimated costs today, who will pay what and when, payment options, policy direction versus
proposed, proposed meter installation program, budget, funding, and implementation.
In response to Council Member Johnson, Mr. Sandelin stated the City Council previously decided
that the purple area indicated on the map was going to pay $200 because they already had the
box.
In response to Mayor Hansen, Mr. Sandelin stated the proposal to charge everyone a flat rate of
$300 was rejected previously by the City Council.
City Manager King and Mr. Sandelin briefly reviewed the financing discussion the City Council
had in March 2009 that excluded using the infrastructure replacement funds for water meter
installation, which would have allowed for the flat rate.
In response to Council Member Johnson, Mr. Sandelin stated there will still be services in the
back because there are a number of pipes that will not be moved.
In response to Council Member Johnson, Mr. Sandelin stated there will be two notices sent to
property owners, one will detail the self -install option and the other will outline the City installation
options.
In response to Mayor Hansen, Mr. Sandelin stated there is some borrowing within the water fund
but not outside of that fund.
In response to Mayor Hansen, Mr. Sandelin stated part of the program includes providing rate
payers as much data as possible on their water usage prior to the meter installation so that they
will have an understanding of their current usage.
In response to Mayor Hansen, Mr. Sandelin stated there is a huge difference between the
currently monitored properties and the difference is primarily based on larger versus smaller
landscaping areas.
In response to Mayor Hansen, Mr. Sandelin stated all meters should be installed in the entire City
by the end of 2013.
In response to Mayor Hansen, Mr. Sandelin stated if everyone utilizes the three-year payment
Continued July 14, 2009
option the City should break even in the middle of 2015.
In response to Mayor Hansen, Mr. Sandelin stated there will be very little, if any, disruption to
landscaping for property owners. He stated the only exception is for the few thousand property
owners who have six inch or less mains in their backyard.
The informal discussion of the subcommittee ended at approximately 7:50 a.m.
ATTEST:
Randi Johl
City Clerk
N
AGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Report on Water Meter Installation Program
MEETING DATE: July 14, 2009 (Shirtsleeve Session)
PREPARED BY: Public Works Director
B- 1
RECOMMENDED ACTION: Receive information on the Water Meter Installation Program,
BACKGROUND INFORMATION: At the May 2,2007 meeting of the City Council, a policy was
adopted regarding the installation of water meters within the City.
Staff will present the recommended Program to implement that
policy direction. Topics to be covered will include a review of the
policy, estimated costs, assignment of costs, budget, and implementation schedule.
FISCAL IMPACT: Not applicable.
FUNDING AVAILABLE: Not applicable.
FWSlpmf
F. Wally Sc1melin
Public Works Director
APPROVED:
Blair King, y Manager
K:1WP1PROJECTSIWATER1M6t8rslCPmposedWtrMtrinstallProgram.doc 711012009
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411
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Topics of Presentation
➢Policy Review
Estimated Meter Costs
Water Meter Program
Budget and Implementation
Policy Review
Council Direction Given on May 2, 2007
Install Prepaid Meters in 4 Years
Self -Installed Meters for 1 Year
All Meters Installed by end of 4th Year
Property Owners Pay for Meters
Payment Terms — lump sum or extended terms
Estimated Costs In May 2007
Meter Costs
Service
Number
Unit
Cost
Cost
(Mil.)
Pre -1979 needing
11X0
17200
$13.2
service upgrade
a meter
s 2-2 mt
$1, -DDD serwke
$II_.D mil -
1979 -1992 meter
2x500
$450
$1.2
ready services
1992+ `meter
3200
$350
$1.1
paid" services
fino less4DO
pilaff metars)
City -upgraded
500
$3500-
Service..
Totals:
171200
$15.7
Estimated Costs Today
Service
Number
Unit
Cost
Cost
($ million)
Pre -1979 needing
107058
$1,200
$12.1
service upgrade
1979 — 1992 meter
27669
$450
$1.2
ready services
1992 + "meter paid"
624
$200
$0.1
services
City -upgraded
936
$200
$0.2
services
Estimated Total
147287
$13.6
Who Will Pay What and When
r Paid by property owner ($200 - $1,200)
r Separate billing from the Utility Bill for non -owner
occupied properties
Billing for meters begin January 1 of the
construction year
"City -upgraded Services" properties pay $200
Upgrades to repair leaking services
Incidental to other City work at a parcel
Infrastructure Replacement Projects 1 & 2
)�. Actual costs to be based upon contractor bids
Payment Options
1. One time payment, or
2. 36 -month payment plan with interest —
payment ranges from $5.60 to $33.58/month
0 No low income, senior, or disabled discounts
0 Hardship cases may require special funding
Policy Direction vs. Proposed
Approved
Proposed
May 2007
Today
Self Installation
2008
2010
Period
Install Pre -Paid
2011
2009
Meters
Install All Meters
2011
2013
Usage Based Billing
2010-25900
2011 —25900
Implementation
2012 — 135000+
2012-45900
2013-75700
2014 — 135000+
Proposed Meter Installation Program
4 years instead of 3
Install 14,287 new services by 2013
Accelerate replacement of water mains to 7
miles/year (backyard to front yard < 6 inches diameter)
• Avoids duplicate meter installation ($3.5 million savings)
• Lowers risk (cost) of adding meters to old services
• Unknown condition of 30 — 90 yeas old service
• Damage/Restoration of landscape and hardscape
• Limits disruption of service
). Water Main Replacement Cost = $20.7 million
Budget
Program Years
2010-2013
Water Main Replacement
$20.7
million
Meter Installations
$13. 6
million
Total Estimated Construction Cost
$34.3
million
Funding
FY 2009 Infrastructure
$14.4 million
Replacement Fund Balance
Revenue from Infrastructure
$8.8 million
Replacement (FY 2010 — 2014)
Property Owner Meter
$13.5 million
Payments
Total Funding Available
$36.7 million
Deficit balance in subfund may exist through 2015
1
Implementation
Self -Installation Period
2010
Adopt Usage Based W & WW Rates
Nov 2009
Approve Contract for Design of
Infrastructure Replacement Projects 4-6
Jan 2010
Construct Infrastructure Replacement
Projects 4 - 6
2011 -2013
Issuance of Usage Based Utility Bills
(and each successive January thereafter)
Jan 2011
D 11P.Stlc