HomeMy WebLinkAboutAgenda Report - May 19, 2010 D-14 PHAGENDA ITEM lDqo* 114
CITY OF LODI
COUNCIL COMMUNICATION
,m
AGENDA TITLE: Set Public Hearing for July 21, 2010 to Consider Adopting Resolution Setting
Usage -Based and Flat Water and Wastewater Rates for Residential, Commercial
and Industrial Customers and Meter Installation Charges
MEETING DATE: May 19, 2010
PREPARED BY: Public Works Director
RECOMMENDEDACTION: Set public hearing for July 21, 2010 to consider adopting a
resolution setting usage -based and flat water and wastewater rates
for residential, commercial and industrial customers and meter
installation charges.
BACKGROUND INFORMATION: The City Council has made numerous water and wastewater rate
decisions over the past year, as summarized below. The
recommended action at the July 21, 2010 City Council meeting will
be to implement and/or modify these previous actions.
May 20, 2009 City Council waived Consumer Price Index (CPI) adjustment of water rates based upon a
lack of new information supporting neither an increase nor a decrease.
July 15, 2009 City Council approved wastewater rate increases of 25 percent effective July 16, 2009;
20 percent effective July 1, 2010; 10 percent effective July 1, 2011; and 5 percent effective July 1, 2012.
Also, the City Council approved an Engineering News Record — 20 Cities Average (ENR) based indexing
of wastewater rates beginning with FY 2012/13. A Proposition 218 procedure was conducted that
validated these actions.
January 6, 2010 City Council received advisory usage -based water and wastewater residential rates for
the purpose of research and customer billing comparisons, as the City transitions to a metered water
system to comply with State law.
March 17, 2010 City Council approved property owner charges for five classes of meter installation types
ranging from $300 to $1,200 and two optional payment plans, one-time or seven-year low-interest
installments.
Staff recommendsthe following actions betaken following the Public Hearing on July 21, 2010.
Water Rates
1. Change the date for implementing the annual rate adjustment to January 1 for each of the five
years (maximum timeframe allowed by Proposition 218) following January 1, 2011. This change
is recommended so that rate changes occur at the lowest usage time of the year.
APPROVED:
loorf fft Bartlam, Interim City Manager
KAWP\UTILITY RATES\W WW\2010 W WW Rate Increase\CCSetPH_WWRates.doc 5/1312010
Set Public Hearing for July 21, 2010 to ConsiderAdopting Resolution Setting Usage -Based and Flat
Water and Wastewater Rates for Residential, Commercial and Industrial Customers and Meter
Installation Charges
May 19,2010
Page 2
2. Change the water rate adjustment index from the CPI to the ENR, effective January 1, 2012,
because this index better reflects the combined inflationary effects of personnel, materials and
energy costs on the total operations of the utility as was done for the Wastewater Rates on
July 15,2010. The CPI adjustment for the period December2007 through December 2008 was
waived by City Council on May 20, 2009. The CPI -based projected adjustmentfor the period
December2008 through December2010 is 5.98 percent. The ENR -based projected adjustment
for the period December2008 through December2010 is 2.10 percent.
3. Adopt usage -based and flat water rates for residential customers as presented in ExhibitA to
become effective January 1, 2011. These are the same residential rates received at the
January 6, 2010 City Council meeting but with a 2.00 percent inflationary increase added to the
flat rates, base rates and each tier. An additional two years deferral of rate adjustment is not
recommended but smaller annual adjustments are recommendedto avoid larger catch-up
adjustments in the future, as was the case with the Wastewater Rates.
4. Change the multi -family and nonresidential usage -based rate structure for meter sizes 1 inch and
smallerto establish paritywith the residential customers, as presented in ExhibitA. Forthese
multi -family and nonresidential customers, the monthly base rate would decrease by $3.39 to
$5.42 per month for meter sizes 5/8 -inch through I -inch. There is a single usage tier for
multi -family and nonresidential customers and it is recommended to increase by $0.081 per
hundred cubicfeet (748 gallons) from $0.789 to $0.86 per hundred cubic feet.
5. Eliminatethe "Infrastructure" and "PCE/TCE" line item on the water utility bills, as was done for
the wastewater utility bills on July 15, 2009.
6. Adopt the meter installation charge schedule presented in Exhibit B. The field work to identifythe
specific installation class for every parcel has begun. The property owners will be advised of their
installation class by spring 2011 at which time lump sum payments will be accepted through
June 30, 2011. The seven-year installment billings will be sent to property owners beginning
July 2011.
As previously presented to the City Council, analysis of the water rates has been focused upon
setting usage -based residential rates in support of the Water Meter Program. Analysis of the
commercial/industrial rate structure confirms these rates are too low but no corrective action is
recommended at this time. Further analysis is required.
Wastewater Rates
Adopt usage -based and flat monthly wastewater rates for residential and nonresidential
customers as presented in Exhibit C effective immediately. For customers paying a usage -
based water bill, the wastewater monthly rate will be determined based upon their average
monthly water usage from the previous December, January, and February. Wastewater
monthly rates will be recalculated each year and put into effect beginning with July billings
each subsequentyear.
Proposition 218 requires that notifications be sent to the property owners and utility customers 45 days
prior to the public hearing. These notices will be sent once the public hearing date has been set.
Opposition to the rate changes is limited to the following actions:
1. For the water rates, establishing the ENR index as the basis of future annual rate
adjustments, implementing the 2.00 percent increase, adopting the usage -based rate
structure and adopting the meter installation charge schedule.
K:\WP\UTILITY RATES\W—WW\2010 W WW Ratelncrease\CCSetPH_WWRates.doc 5/14/2010
Set Public Hearing for July 21, 2010 to ConsiderAdopting Resolution Setting Usage -Based and Flat
Water and Wastewater Rates for Residential, Commercial and Industrial Customers and Meter
Installation Charges
May 19,2010
Page 3
2. For the wastewater rates, adopting the usage -based rate structure.
Revenue Neutrality: Both the water and wastewater usage -based rates are calculated to generate the
same revenue as the flat rates from the prior year, but they include updated projections of revenues and
expenditures for the next one to five years. The rates recommended to become effective immediatelyfor
wastewater and on January 1, 2011 for water reflect this.
Water Utility Model: City Council approved a professional services agreementwith The Reed Group on
August 6, 2008, for the preparation of a water utility financial model. Although new to Lodi, this is a
common tool used to track revenues and expenditures for a utility. The model has been used to forecast
the performance of the utility through FY 2019/20 while incorporating substantial capital investments
including the water meter program, infrastructure replacement program, property owner meter payments,
and PCE/TCE remediation costs. The recommended rates presented in ExhibitA were developed using
this tool.
Wastewater Utility Model: The Reed Group has recently completed development of a new Wastewater
Utility Financial Model. The new model is essentially the same as before but assumptions have been
renewed and revenue and expense information has been updated based upon actual. The
recommended rates presented in Exhibit C were developed using this tool.
Water and Wastewater Capacity Charge: The capacity charge (development impact fee) for Water and
Wastewater are not part of the rate structure for the utility. These charges will be updated along with the
Lodi Development Impact Fee Program that is expected to be completed within 18 months. Final costs
for the White Slough expansion, future White Slough expansion costs, and the Water Treatment Plant
costs will be incorporated into the capacity charges.
FISCAL IMPACT: Increased revenues to the water and wastewater utility required to keep up
with cost of service increases and new mandated costs.
FUNDING AVAILABLE: Not applicable.
�(av'4'
F. Wally SanOelin
Public Works Director
FWS/pmf
Attachments
cc: Steve Mann, Information Systems Manager
Charlie Swimley, Deputy PublicWorks Director — Utilities
K:\WP\UTILITY RATES\W WW\2010 W WW Rate lncrease\CCSetPH WWRates.doc 5/13/2010
Exhibit
City of Lodi -- Water Utility
current ana vr000sea water nates
Notes:
Exhibit A J
(1) Revised July 1, 2008.
(2) Current residential metered rates are revenue neutral and were approved for comparative
billing purposes only.
(3) Proposed multi -family and non-residential rates improve equity with single family water rates
The Reed Group, Inc. DRAFT -- 05/14/2010
Current (1)
Jan. 2011
Flat Rates ($/month)
Percent Increase
2
Single Family Residential Unit ($/month)
1 Bedroom
$
27.98
$
28.54
2 Bedroom
$
33.61
$
34.28
3 Bedroom
$
40.28
$
41.09
4 Bedroom
$
48.40
$
49.37
5 Bedroom
$
58.06
$
59.22
6 Bedroom
$
69.67
$
71.06
7 Bedroom
$
83.58
$
85.25
Multi -Family Residential Unit
($/month)
1 Bedroom
$
24.02
$
24.50
2 Bedroom
$
28.81
$
29.39
3 Bedroom
$
34.57
$
35.26
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter
$
22.25
$
22.70
1" Meter
$
36.15
$
36.85
11/2" Meter
$
70.60
$
72.00
2" Meter
$
112.10
$
114.35
Multi -Family and Non -Residential 3)
5/8" Meter
$
25.64
$
22.70
3/4" Meter
$
28.17
$
22.70
1" Meter
$
42.27
$
36.85
11/2" Meter
$
56.35
$
57.50
2" Meter
$
70.45
$
71.85
3" Meter
$
98.63
$
100.60
4" Meter
$
126.80
$
129.35
6" Meter
$
183.16
$
186.80
8" Meter
$
239.48
$
244.30
10" Meter
$
295.83
$
301.75
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1 - 0 to 10 CCF/month
$
0.86
$
0.88
Tier 2 - 11 to 50 CCF/month
$
1.29
$
1.32
Tier 3 - Over 50 CCF/month
$
1.71
$
1.74
Multi -Family and Non -Residential (3)
All Water Usage
$
0.789
$
0.88
Notes:
Exhibit A J
(1) Revised July 1, 2008.
(2) Current residential metered rates are revenue neutral and were approved for comparative
billing purposes only.
(3) Proposed multi -family and non-residential rates improve equity with single family water rates
The Reed Group, Inc. DRAFT -- 05/14/2010
Exhibit B
WATER METER INSTALLATION CHARGES
Class
Description
Charge
Monthly
Total of
Payment
Pa ments
1
Meter and ERT
$300
$3.76
$315.84
2
Noxstandard Meter
$450
$5.65
$474.60
3
Rich Box in Front Yard
$1,100
$13.80
$1,159.20
4
Rich Box in Rear Yard
$1,200
$15.06
$1,265.04
5
New Meter Service on
$1,200
$15.06
$1,265.04
New Main
K:\WP\UTILITY RATES\W WW\2010 W WW Rate Increase\CCSetPH WWRates ExB.doc
Exhibit
City of Lodi -- Wastewater Utility
iLurreni ano rro osea wastewater nates
Current 1
July 2010
Residential
Percent increase
12
Flat Rates ($/month)
1 Bedroom
$ 20.81
$
23.31
2 Bedroom
$ 27.74
$
31.07
3 Bedroom
$ 34.68
$
38.84
4 Bedroom
$ 41.61
$
46.60
5 Bedroom
$ 48.55
$
54.38
6 Bedroom
$ 55.48
$
62.14
7 Bedroom
$ 62.42
$
69.91
Usage -Based Rates (2)
Service Charge ($/month)
$ 18.95
$
21.22
Usage Charge ($/CCF) (3)
$ 2.15
$
2.41
Non -Residential ($/month)
Moderate Strength (per SSU)
$ 27.74
$
31.07
High Strength
Flow (per MG, annual basis)
$ 2,808.88
$
3,145.95
BOD (per 1,000 lbs, annual basis)
$ 463.54
$
519.16
SS (per 1,000 lbs, annual basis)
$ 289.83
$
324.61
Grease Interceptor & Septic Holding Tank
Waste within City Limits (per 1,000 gal.
$ 245.44
$
274.89
Septic (only) Holding Tank Waste
Outside City Limits (per 1,000 gal.)
$ 521.03
$
583.55
Disposal to Storm Drain System (per M(
$ 257.80
$
288.74
Disposal to Industrial System (4)
Flow (per MG, annual basis)
$ 2,218.78
$
2,485.03
BOD (per 1,000 lbs, annual basis)
$ 20.34
$
22.78
Winery Wastewater (per 1,000 gal.)
$ 248.53
$
278.35
Notes:
(1) Revised July 16, 2009.
(2) Current revenue neutral rates were approved for comparative billing purposes only.
(3) Winter water usage determined as average monthly usage from December through February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT -- 05/13/2010
City of Lodi -- Wastewater Utility
current ana vro osea water usa a-basea Kesiaentiai wase
Current 1 July 2010
Monthly Fixed Service Charge $ 18.95 $ 21.22
Wastewater Flow Charge $ 2.15 $ 2.41
Based on Winter Water Usage (2)
Monthly Wastewater Bills (for various usages)
Winter Water Use (CCF)
0
$
18.95
$ 21.22
1
$
21.10
$ 23.63
2
$
23.25
$ 26.04
3
$
25.40
$ 28.45
4
$
27.55
$ 30.86
5
$
29.70
$ 33.27
6
$
31.85
$ 35.68
7
$
34.00
$ 38.09
8
$
36.15
$ 40.50
9
$
38.30
$ 42.91
10
$
40.45
$ 45.32
11
$
42.60
$ 47.73
12
$
44.75
$ 50.14
13
$
46.90
$ 52.55
14
$
49.05
$ 54.96
15
$
51.20
$ 57.37
16
$
53.35
$ 59.78
17
$
55.50
$ 62.19
18
$
57.65
$ 64.60
19
$
59.80
$ 67.01
20
$
61.95
$ 69.42
Notes:
ewater Rates
(1) Estimated to be revenue neutral relative to the wastewater rates implemented in July 2009.
(2) Winter water usage determined as average monthly usage from December through February.
Special Notes:
- Sample is only about 5% of residential accounts
- Sample is skewed to larger homes (more bedrooms)
- To compensate, calculation is based on minimum winter usage rather than average winter usage
The Reed Group, Inc. DRAFT -- 05/13/2010
MEDIA ADVISORY FOR APTA MEMBERS
To Be Issued Before June 17,2010 — 5th Annual National Dump the Pump Day
FIFTH ANNUAL NATIONAL DUMP THE PUMP DAY TO BE HELD ON JUNE 17
Dump the Pump. Save Money. Ride Transit.
LODI, CA - With the economic recession still in effect and with the return of high gas prices,
City of Lodi's GrapeLine announced today that it will j oin with other public transportation
systems nationwide to participate in the Fifth Annual National Dump the Pump Day on
Thursday, June 17. The slogan of this year's National Dump the Pump Day is "Dump the Pump.
Save Money. Ride Transit."
Sponsored by the American Public Transportation Association (APTA) the 2010 National Dump
the Pump Day is a day that encourages people to ride public transportation and save money,
instead of driving a car. Started in June 2006 when gas prices were $3 per gallon, this national
day emphasizes that public transportation is a great travel option that also helps people save
money.
In this economic climate, saving money is on everyone's minds and public transportation is the
quickest way to beat high gas prices. According to the latest APTA Transit Savings Report (put
in link), individuals in a two person household can save an average of more than $9,000 annually
by downsizing to one car.
WHAT: 5th Annual National Dump the Pump Day
WHERE: at City of Lodi's GrapeLine and transit agencies nationwide
WHEN: Thursday, June 17, 2010
To find out more about the GrapeLine's Dump the Pump activities go to www.lodi.gov/transit or
call the City of Lodi's Transit Department at 209.333.6706.
Item No. D-14
Exhibit C
Exhibit
City of Lodi -- Wastewater Utility
Grease Interceptor & Septic Holding Tank
Waste within City Limits (per 1,000 gal. $
Septic (only) Holding Tank Waste
Outside City Limits (per 1,000 gal.) $
Disposal to Storm Drain System (per M( $
Disposal to Industrial System (4)
245.44 $ 274.89
521.03 $ 583.55
257.80 $ 288.74
Flow (per MG, annual basis) $ 2,218.78
BOD (per 1,000 lbs, annual basis) $ 20.34
Winery Wastewater (per 1,000 gal.) $ 248.53
$ 2,485.03
$ 22.78
$ 278.35
Notes:
(1) Revised July 16, 2009.
(2) Current revenue neutral rates were approved for comparative billing purposes only.
(3) Winter water usage determined as average monthly usage from December through February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT-- 05/18/2010
Current (1)
July 2010
Residential
Percent Increase
12
Flat Rates ($/month)
1 Bedroom
$
20.81
$
23.31 $ 23.38
2 Bedroom
$
27.74
$
31.07
3 Bedroom
$
34.68
$
38.84
4 Bedroom
$
41.61
$
46.61 $-46:68
5 Bedroom
$
48.55
$
54.37 $-54.38
6 Bedroom
$
55.48
$
62.14
7 Bedroom
$
62.42
$
69.91
Usage -Based Rates (2)
Service Charge ($/month)
$
18.95
$
21.22
Usage Charge ($/CCF) (3)
$
2.15
$
2.41
Non -Residential ($/month)
Moderate Strength (per SSU)
$
27.74
$
31.07
High Strength
Flow (per MG, annual basis)
$
2,808.88
$
3,145.95
BOD (per 1,000 lbs, annual basis)
$
463.54
$
519.16
SS (per 1,000 lbs, annual basis)
$
289.83
$
324.61
Grease Interceptor & Septic Holding Tank
Waste within City Limits (per 1,000 gal. $
Septic (only) Holding Tank Waste
Outside City Limits (per 1,000 gal.) $
Disposal to Storm Drain System (per M( $
Disposal to Industrial System (4)
245.44 $ 274.89
521.03 $ 583.55
257.80 $ 288.74
Flow (per MG, annual basis) $ 2,218.78
BOD (per 1,000 lbs, annual basis) $ 20.34
Winery Wastewater (per 1,000 gal.) $ 248.53
$ 2,485.03
$ 22.78
$ 278.35
Notes:
(1) Revised July 16, 2009.
(2) Current revenue neutral rates were approved for comparative billing purposes only.
(3) Winter water usage determined as average monthly usage from December through February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT-- 05/18/2010
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P.O. BOX 3006
LODI, CALIFORNIA 9524 1-1 91 0
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER RESOLUTION SETTING
USAGE -BASED AND FLAT WATER AND WASTEWATER RATES
FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
CUSTOMERS
PUBLISH DATE: SATURDAY, JUNE 26,2010
SATURDAY, JULY 10,2010
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILLTO:
LNS ACCT. #0510052
BATED: FRIDAY, JUNE 11, 2010
ORDERED BY: RANDI JOHL
CITY CLERK
_
PER ROBISONMC
. C
ASSISTANT CITY CLERK
RANDI JOHL, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
MARIA BECERRA
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Faxed to the Sentinel at 369-1084 at (time) a (date) (pages)
LNS Phoned to confirmreceipt of all pages at Mime) CF MB J M R (initials)
formAadvins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER RESOLUTION SETTING USAGE -BASED AND
FLAT WATER AND WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL,
AND INDUSTRIAL CUSTOMERS
On Friday, June 11, 2010, in the City of Lodi, San Joaquin County, California, a Notice
of Public Hearing to consider resolution setting usage -based and flat water and
wastewater rates for residential, commercial, and industrial customers (attached and
marked as Exhibit A) was posted at the following locations:
Lodi Public Library
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
declare under penalty of perjurythat the foregoing is true and correct.
Executed on June 11, 2010, at Lodi, California.
J NIFER V. ROBISON, CMC
ASSISTANT CITY CLERK
N:\Administration\CLERK\Forms\DECPOSTPW.DOC
ORDERED BY:
RANDIJOHL
CITY CLERK
MARIA BECERRA
ADMINISTRATIVE CLERK
• CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
Date: July 21, 2010
Time: 7:00 p.m.
For information regarding this notice please contact:
Randi Johl
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
- f
E.Xlh
I i
NOTICE S HEREBY GIVEN, pursuant to Government Code §54354.5, that on
Wednesday, July 21, 2010, at the hour of 7:00 p.m., or as soon thereafter as the
matter may be heard, the City Council will conduct a public hearing at the Carnegie
Forum, 305 West Pine Street, Lodi, to consider the following matter:
a) Resolution setting usage -based and flat water and wastewater rates for
residential, commercial, and industrial customers (as identified on the
attached ExhibitA and B).
Information regarding this item may be obtained in the Public Works Department,
221 West Pine Street, Lodi, (209) 333-6706. All interested persons are invited to
present their views and comments on this matter. Written protests may be filed with the
City Clerk, City Hall, 221 W. Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the
hearing scheduled herein, and oral statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only those
issues you or someone else raised at the public hearing described in this notice or in
written correspondence delivered to the City Clerk at, or prior to, the public hearing.
At said hearing, any person interested, including any person owning property in the City,
may be heard as to whether said charges are discriminatory or excessive, or will not be
sufficient under Government Code Section 54515, or will not comply with the provisions
or covenants of any outstanding revenue bonds of the City payable from the revenues of
the respective enterprise, or will not comply with the provisions of Title 5, Division 2,
Part 1, Chapter 6 "The Revenue Bond Law" cf the Government Code, or an any other
matter related to the proposed charges or their method of adoption.
By 0559r of the Lodi City Council:
R I
City Clerk
Dated: May 19,2010
JACITYCLRIUORMStPH NOTICE publicationSolidWsteRates_Prop218.doc 6/8/70
RESOLUTION NO. 2010-
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING USAGE-BASEDAND FLATWATERAND
WASTEWATER RATES FOR RESIDENTIAL,
COMMERCIAL,AND INDUSTRIAL CUSTOMERS
WHEREAS, the Council of the City of Lodi finds as follows:
1. 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. On July 15, 2009, Council approved wastewater rate increases of
25 percent effective July 16, 2009; 20 percent effective July 1, 2010;
10 percent effective July 1, 2011; and 5 percent effective July 1, 2012.
Council also approved an Engineering News Record — 20 Cities Average
(ENR) based indexing of wastewater rates beginning with FY 2012/13. A
proposition 218 procedure was conducted that validated these actions;
4. On January 6, 2010, Council received advisory usage -based water and
wastewater residential rates for the purpose of research and customer
billing comparisons, as the City transitions to a metered water system to
comply with State law;
5. Staff recommends changing the date for implementing the annual water
rate adjustment to January 1 for each of the five years following
January 1, 2011. This change is recommended so that rate changes
occur at the lowest usage time of the year;
6. Staff recommends changing the water rate adjustment index from the
Consumer Price Index to the ENR, effective January 1, 2012, because
this index better reflects the combined inflationary effects of personnel,
materials and energy costs on the total operations of the water utility;
7. Staff recommends adopting usage -based and flat water rates for
residential customers as presented in Exhibit A to become effective
January 1,2011;
8. Staff recommends changing the multi -family and nonresidential usage -
based rate structure for meter sizes 1 inch and smaller to establish parity
with the residential customers, as presented in ExhibitA;
9. Staff recommends eliminating the "Infrastructure" and "PCE/TCE" line
item on the water utility bills, as was done for the wastewater utility bills
on July 15, 2009;
follows:
10. Staff recommends adopting usage -based and flat monthly wastewater
rates for residential and nonresidential customers as presented in
Exhibit B effective immediately. For customers paying a usage -based
water bill, the wastewater monthly rate will be determined based upon
their average monthly water usage from the previous December, January,
and February. Wastewater monthly rates will be recalculated each year
and put into effect beginning with July billings each subsequent year;
11. 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 pursuantto California law;
12. 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;
13. 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;
14. 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;
15. Ch July 21, 2010, 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;
16. 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
17. 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, compiy
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. Pursuantto 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 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 2012 through January 2016 for
water rates and July 2011 through July 2016 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: July 21, 2010
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I hereby certify that Resolution No. 2010- was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 21, 2010, by the following
vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS—
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
RANDIJOHL
City Clerk
2010-
Exhibit A
Exhibit
City of Lodi-- Water Utility
Flat Rates ($/month)
Percent Increase
2
4
4
4
Single Family Residential Unit ($/month)
1 Bedroom $
27.98
$
28.54
$
29.68
$
30.87
$
32.10
2 Bedroom $
33.61
$
34.28
$
35.65
$
37.08
$
38.56
3 Bedroom $
40.28
$
41.09
$
42.73
$
44.44
$
46.22
4 Bedroom $
48.40
$
49.37
$
51.34
$
53.39
$
55.53
5 Bedroom $
58.06
$
59.22
$
61.59
$
64.05
$
66.61
6 Bedroom $
69.67
$
71.06
$
73.90
$
76.86
$
79.93
7 Bedroom $
83.58
$
85.25
$
88.66
$
92.21
$
95.90
Multi -Family Residential Unit ($/month)
1 Bedroom $
24.02
$
24.50
$
25.48
$
26.50
$
27,56
2 Bedroom $
28.81
$
29.39
$
30.57
$
31.79
$
33.06
3 Bedroom $
34.57
$
35.26
$
36.67
$
38.14
$
39.67
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter $
22.25
$
22.70
$
23.60
$
24.55
$
25.55
1" Meter $
36.15
$
36.85
$
38.30
$
39.85
$
41.45
11/2" Meter $
70.60
$
72.00
$
74.90
$
77.90
$
81.00
2" Meter $
112.10
$
114.35
$
118.90
$
123.65
$
128.60
Multi -Family and Non -Residential (3)
5/8" Meter $
25.64
$
22.70
$
23.60
$
24.55
$
25.55
3/4" Meter $
28.17
$
22.70
$
23.60
$
24.55
$
25.55
1" Meter $
42.27
$
36.85
$
38.30
$
39.85
$
41.45
11/2" Meter $
56.35
$
57.50
$
59.80
$
62.20
$
64.70
2" Meter $
70.45
$
71.85
$
74.70
$
77.70
$
80.80
3" Meter $
98.63
$
100.60
$
104.60
$
108.80
$
113.15
4" Meter $
126.80
$
129.35
$
134.50
$
139.90
$
145.50
6" Meter $
183.16
$
186.80
$
194.25
$
202.00
$
210.10
8" Meter $
239.48
$
244.30
$
254.05
$
264.20
$
274.75'
10" Meter $
295.83
$
301.75
$
313.80
$
326.35
$
339.40
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1- 0 to 10 CCF/month $
0.86
$
0.88
$
0.92
$
0,96
$
1.00
Tier 2 - 11 to 50 CCF/mons $
1.29
$
1.32
$
1.37
$
1.42
$
1.48
Tier 3 - Over 50 CCF/mont $
1.71
$
1.74
$
1.81
$
1.88
$
1.96
Multi -Family and Non -Residential (3)
All Water Usage $
0.789
$
0.88
$
0.92
$
0.96
$
1.00
Dotes:
(1) Revised July 1, 2008.
(2) Current residential metered rates are revenue neutral and were approved for comparative billing purposes only.
(3) Proposed multi -family and non-residential rates improve equity with single family water rates.
The Reed Group, Inc. DRAFT -- 05/07/2010
Exhibit B I
Exhibit
City of Lodi -- Wastewater Utility
current ana rro osea wastewater Kates
Current(l)
Jul 2010
Residential
Percent Increase
12
Flat Rates ($/month)
1 Bedroom
$
20.81
$
23.31
2 Bedroom
$
27.74
$
31.07
3 Bedroom
$
34.68
$
38.84
4 Bedroom
$
41.61
$
46.61
5 Bedroom
$
48.55
$
54.37
6 Bedroom
$
55.48
$
62.14
7 Bedroom
$
62.42
$
69.91
Usage-Basec Rates (2
Service Charge ($/month)
$
18.95
$
21.22
Usage Charge ($/CCF) (3)
$
2.15
$
2.41
Non -Residential ($/month)
Moderate Strength (per SSU)
$
27.74
$
31.07
High Strength
Flow (per MG, annual basis)
$
2,808.88
$
3,145.95
BOD (per 1,000 lbs, annual basis)
$
463.54
$
519.16
SS (per 1,000 lbs, annual basis)
$
289.83
$
324.61
Grease Interceptor & Septic Holding Tank
Waste within City Limits (per 1,000 gal.
$
245.44
$
274.89
Septic (only) Holding Tank Waste
Outside City Limits (per 1,000 gal.)
$
521.03
$
583.55
Disposal to Storm Drain System (per M(
$
257.80
$
288.74
Disposal to Industrial System (4)
Flow (per MG, annual basis)
$
2,218.78
$
2,485.03
BOD (per 1,000 lbs, annual basis)
$
20.34
$
22.78
Winery Wastewater (per 1,000 gal.)
$
248.53
$
278.35
Notes:
(1) Revised July 16, 2009.
(2) Current revenue neutral rates were approved for comparative billing purposes only.
(3) Winter water usage determined as average monthly usage from December through February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT 06/07/2010
I l=xhihitPt I
City cf Lodi --Wastewater Utility
current ana Nroaosea water usaae-basea Kesiaentiai was
Current 1 July 2010
Monthly Fixed Service Charge $ 18.95 $ 21.22
WastewaterFlow Charge $ 2.15 $ 2.41
Based on Winter Water Usage (2)
Monthly WastewaterBills (for various usages)
Winter Water Use (CCF)
0
$
18.95
$ 21.22
1
$
21.10
$ 23.63
2
$
23.25
$ 26.04
3
$
25.40
$ 28.45
4
$
27.55
$ 30.86
5
$
29.70
$ 33.27
6
$
31.85
$ 35.68
7
$
34.00
$ 38.09
8
$
36.15
$ 40.50
9
$
38.30
$ 42.91
10
$
40.45
$ 45.32
11
$
42.60
$ 47.73
12
$
44.75
$ 50.14
13
$
46.90
$ 52.55
14
$
49.05
$ 54.96
15
$
51.20
$ 57.37
16
$
53.35
$ 59.78
17
$
55.50
$ 62.19
18
$
57.65
$ 64.60
19
$
59.80
$ 67.01
20
$
61.95
$ 69.42
Notes:
ewater Rates
(1) Estimated to be revenue neutral relative to the wastewater rates implemented in July 2009.
(2) Winter water usage determined as average monthly usage from December through February.
The Reed Group, Inc. DRAFT -- 06/07/2010