HomeMy WebLinkAboutAgenda Report - July 21, 2010 H-03 PHAGENDA ITEM
&% CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Public Hearing to Consider Adopting Resolution Setting Usage -Based an( Flat
Water and Wastewater Rates for Residential, Commercial and Industrial
Customers and Tabulate Proposition 218 Protests
MEETING DATE: July 21,2010
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Public hearing to consider adopting a resolution setting
usage -based and flat water and wastewater rates for residential,
commercial and industrial customers and tabulate Proposition 218
protests.
BACKGROUND INFORMATION: The City Council has made numerous water and wastewater rate
decisions over the past year, as summarized below. The
recommended action following the public hearing 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 procedurewas 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.
Staff recommends the following actions be taken following the public hearing.
Water Rates
1. Change the date for implementing the annual rate adjustmentto 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.
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
APPROVED:
Ko_nFa_cR Bartlam, Interim City Manager
K UMUTILITY RATES\W WW\2010 W'—WW Rate Increase\CPH WWWRates.doc 7/15/2010
Public Hearing to Consider Adopting Resolution Setting Usage -Based and Flat Water and Wastewater
Rates for Residential, Commercial and Industrial Customers and Tabulate Proposition 218 Protests
July 21, 2010
Page 2
July 15,20 10. The CPI adjustmentfor the period December2007through December 2008 was
waived by City Council on May 20, 2009. The CPI -based projected adjustment for 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 Exhibit A 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
smaller to establish parity with the residential customers, as presented in Exhibit A. 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 1 inch. There is a single usage tier for
multi -family and nonresidential customers and it is recommended to increase by $0.091 per
hundred cubic feet (748 gallons) from $0.789 to $0.88 per hundred cubicfeet, the same as for
residential customers.
5. Eliminate the "Infrastructure" and "PCE/TCE" line item on the water utility bills, as was done for
the wastewater utility bills on July 15, 2009.
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
1. Adopt usage -based and flat monthly wastewater rates for residential and nonresidential
customers as presented in Exhibit C effective immediately. These rates reflect a 12% increase
that is substantially lower than the 20% increase approved by Council and it includes an
ENR index adjustment of 1.05%. 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 beginningwith 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 have been sent. 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 and adopting the usage -based rate structure.
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 that are recommended to become effective
immediatelyfor wastewater and on January 1, 2011 for water reflect revenue neutrality.
Water Utility Model: City Council approved a professional services agreement with The Reed Group on
August 6, 2008, for the preparation of a water utility financial model. Although new to Lodi, this is a
K:\WP\UTILITY RATES\W WW\2010 W WW Rate lncrease\CPH WWWRates.doc 7/15/2010
Public Hearing to Consider Adopting Resolution Setting Usage -Based and Flat Water and Wastewater
Rates for Residential, Commercial and Industrial Customers and Tabulate Proposition 218 Protests
July 21, 2010
Page 3
common tool used to track revenues and expendituresfor 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 Exhibit Awere developed using
this tool. A summary of the Water Financial Plan derived from the rate model is provided as Exhibit C. It
should be noted that the model presents accrual of substantial reserves in the later years. As part of the
Water Treatment Plant Financing Plan, a recommendationwill be presented regarding the early
retirement of debt to save rate payers interest costs.
Wastewater Utilitv Model: The Reed Group has recently completed development of anew 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 B were developed using this tool. The Financial Plan Summary
from the model is provided in Exhibit D.
Water and Wastewater Capacity Charae: 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.
4 'ave�
F. Wally S delin
Public Works Director
FWS/pmf
Attachments
cc: Steve Mann, Information Systems Manager
Charlie Swimley, Deputy Public Works, Director- Utilities
K:\WP\UTILITY RATES\W WW\2010 WWW Rate lncrease\CPH WWWRates.doc 711512010
Exhibit A
City of Lodi -- Water Utility
Current and Proposed Water Rates
Notes:
(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 -- 7/6/2010
Current (1)
Jan. 2011
Jan. 2012
Jan. 2013
Jan. 2014
Jan. 2015
Jan. 2016
Percent Increase -->
2.0%
3.5$
3.5$
3.5$
3.5%
3.5$
Flat Rates ($/month)
Single Family Residential Unit ($/month)
1 Bedroom
$
27.98
$ 28.54
$
29.54
$
30.57
$
31.64
$
32.75
$
33.90
2 Bedroom
$
33.61
$ 34.28
$
35.48
$
36.72
$
38.01
$
39.34
$
40.72
3 Bedroom
$
40.28
$ 41.09
$
42.53
$
44.02
$
45.56
$
47.15
$
48.80
4 Bedroom
$
48.40
$ 49.37
$
51.10
$
52.89
$
54.74
$
56.66
$
58.64
5 Bedroom
$
58.06
$ 59.22
$
61.29
$
63.44
$
65.66
$
67.96
$
70.34
6 Bedroom
$
69.67
$ 71.06
$
73.55
$
76.12
$
78.78
$
81.54
$
84.39
7 Bedroom
$
83.58
$ 85.25
$
88.23
$
91.32
$
94.52
$
97.83
$
101.25
Multi -Family Residential Unit
($/month
1 Bedroom
$
24.02
$ 24.50
$
25.36
$
26.25
$
27.17
$
28.12
$
29.10
2 Bedroom
$
28.81
$ 29.39
$
30.42
$
31.48
$
32.58
$
33.72
$
34.90
3 Bedroom
$
34.57
$ 35.26
$
36.49
$
37.77
$
39.09
$
40.46
$
41.88
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter
$
22.25
$ 22.70
$
23.50
$
24.30
$
25.15
$
26.05
$
26.95
1" Meter
$
36.15
$ 36.85
$
38.15
$
39.50
$
40.90
$
42.35
$
43.85
11/2" Meter
$
70.60
$ 72.00
$
74.50
$
77.10
$
79.80
$
82.60
$
85.50
2" Meter
$
112.10
$ 114.35
$
118.35
$
122.50
$
126.80
$
131.25
$
135.85
Multi -Family and Non -Residential
(3)
5/8" Meter
$
25.64
$ 22.70
$
23.50
$
24.30
$
25.15
$
26.05
$
26.95
3/4" Meter
$
28.17
$ 22.70
$
23.50
$
24.30
$
25.15
$
26.05
$
26.95
1" Meter
$
42.27
$ 36.85
$
38.15
$
39.50
$
40.90
$
42.35
$
43.85
11/2" Meter
$
56.35
$ 57.50
$
59.50
$
61.60
$
63.75
$
66.00
$
68.30
2" Meter
$
70.45
$ 71.85
$
74.35
$
76.95
$
79.65
$
82.45
$
85.35
3" Meter
$
98.63
$ 100.60
$
104.10
$
107.75
$
111.50
$
115.40
$
119.45
4" Meter
$
126.80
$ 129.35
$
133.90
$
138.60
$
143.45
$
148.45
$
153.65
6" Meter
$
183.16
$ 186.80
$
193.35
$
200.10
$
207.10
$
214.35
$
221.85
8" Meter
$
239.48
$ 244.30
$
252.85
$
261.70
$
270.85
$
280.35
$
290.15
10" Meter
$
295.83
$ 301.75
$
312.30
$
323.25
$
334.55
$
346.25
$
358.35
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1 - 0 to 10 CCF/month
$
0.86
$ 0.88
$
0.91
$
0.94
$
0.97
$
1.00
$
1.04
Tier 2 - 11 to 50 CCF/mont
$
1.29
$ 1.32
$
1.37
$
1.42
$
1.47
$
1.52
$
1.57
Tier 3 - Over 50 CCF/montf
$
1.71
$ 1.74
$
1.80
$
1.86
$
1.93
$
2.00
$
2.07
Multi -Family and Non -Residential (3)
All Water Usage
$
0.789
$ 0.88
$
0.91
$
0.94
$
0.97
$
1.00
$
1.04
Notes:
(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 -- 7/6/2010
Exhibit
City of Lodi -- Wastewater Utility
current ana Nro osea wastewater Kates
Current 1
July 2010
Residential
Percentlncrease
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 MG)
$
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 -- 07/06/2010
City of Lodi -- Wastewater Utility
current ana vro osea water usa e-tsasea Kesiaenvai 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.
The Reed Group, Inc. DRAFT -- 07/06/2010
Exhibit C
The Reed Group, Inc. DRAFT-- 7/15/2010
IBI
C I
D I
E I
F I
Q I
H I
1 1
,
1
Exhibit
2
City of Lodi -- Water Utility
3
Financial Plan Summary
FY 09-10
4
1F1
Budget I
FY 10-11 1
FY 11-12 1
FY 12-13 1
FY 13-14 1
FY 14-15 1
FY 15-16 1
FY 16-17 1
FY 17-18 1
FY 18-19 1
FY 19-20
5
Overall Water Rate Increases-->
2.0%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
3.5%
6
OPERATING FUND :0
Jan. 2011
Jan, 2012
Jan. 2013
Jan, 2014
Jan. 2015
Jan. 2016
Jan. 2017
Jan. 2018
Jan. 2019
Jan. 2020
gWATER
9
BeginningBalance
2,071,982
2,858,000
6,762,000
7,549,940
4,797,005
4,109,570
3,544,335
3,345,175
4,036,965
4,109,530
5,837,670
10
Revenues
11
Water Sales
6,793,974
12,137,000
12,527,000
12,915,000
13,344,000
13,644,000
14,184,000
14,784,000
15,478,000
16,198,000
16,949,000
12
Infrastructure Replacement
2,384,556
13
Interest Earnings
79,200
29,000
101,000
151,000
120,000
123,000
124,000
117,000
141,000
144,000
204,000
14
Other Revenues
115,000
381,000
393,000
404,000
416,000
428,000
440,000
453,000
467,000
481,000
496,000
35
Transfer from Fund 182 for DS
2,214,000
2 292 000
2,373,000
2 457 000
2,544,000
2 634 000
2,696 000
16
Total Revenues
9,372,730
12,547,000
13,021,000
13,470,000
16,094,000
16,487,000
17,121,000
17,811,000
18,630,000
19,457,000
20,345,000
17
Expenditures
18
Transfer Out to Gen'] Fund (COS)
1,060,122
1,060,000
1,060,000
1,060,000
1,060,000
1,060,000
1,060,000
1,060,000
1,060,000
1,060,000
1,060,000
19
Transfer Out to Wtr Cap Outlay
2,384,556
2,500,000
2,500,000
4,000,000
4,000,000
4,000,000
4,000,000
3,500,000
3,500,000
3,500,000
3,500,000
20
Transfer Out to PCE-TCE Fund
600,000
1,200,000
1,500,000
1,500,000
1,500,000
1,500,000
2,500,000
1,500,000
1,500,000
21
Administration & Other
1,132,313
1,197,000
1,240,000
1,284,000
1,330,000
1,377,000
1,426,000
1,476,000
1,529,000
1,584,000
1,641,000
22
Water Production
696,160
657,000
680,000
704,000
729,000
754,000
780,000
808,000
836,000
866,000
896,000
23
Electricity
780,000
690,000
721,000
753,000
787,000
822,000
859,000
898,000
938,000
980,000
1,024,000
24
DBCP Monitoring
294,780
263,000
272,000
280,000
289,000
298,000
307,000
316,000
326,000
336,000
347,000
25
SWTF Oper.& Maint.(net)
1,716,000
1,788,000
1,870,000
1,942,000
2,030,000
2,491,000
2,214,000
2,313,000
26
Water Distribution
798,742
812,000
841,000
871,000
902,000
934,000
968,000
1,002,000
1,038,000
1,076,000
1,115,000
27
WID Water Purchases
1,212,000
1,236,000
1,273,000
1,311,000
1,350,000
1,391,000
1,433,000
1,476,000
1,520,000
1,566,000
1,613,000
28
1991 CSDW Loan Payments
228,024
228,000
228,000
228,000
228,000
228,000
228,000
238,000
29
Estimated 2010 COP Payments
2,818,060
2 815 935
2,818,435
2 818 235
2,817,160
2 815 210
2,819,435
3 046 860
3,044,546
30
Total Expenditures
8,586,697
6,643,000
12,233,060
16,222,935
16,781,435
17,052,235
17,320,160
17,119,210
18,557,435
17,728,860
18,053,546
32
Ending Balance
2,858,000
6 762 000
7 549 940
4 797 005
4109 570
3 544,335
3,345,175
4,036,965
4,109,530
5,837,670
8,129,124
33
Operating Reserve (25%)
1,551,000
1,536,000
2,283,000
2,756,000
2,820,000
2,888,000
2,955,000
3,030,000
3,139,000
3,182,000
3,263,000
34
Available Balance
1,307,000
5,226,000
5,266,940
2,041,005
1,289,570
656,335
390,175
1,006,965
970,530
2,655,670
4,866,124
35
IDS Coverage (min. = 1.20)
16.23
31.68
3.74
2.79
3.21
3.24
3.32
3.43
3.83
3.33
3.56
36
WATER CAPITAL OUTLAY
37
38
BeginningBalance
11,839,529
9,962,000
44,183,000
10,885,000
7,510,000
5,311,000
1,121,000
3,000
4,981,000
10,123,000
13,718,000
39
Revenues
40
Operating Transfers In
2,384,556
2,500,000
2,500,000
4,000,000
4,000,000
4,000,000
4,000,000
3,500,000
3,500,000
3,500,000
3,500,000
41
Interest Earnings
88,200
100,000
663,000
218,000
188,000
159,000
39,000
174,000
354,000
480,000
42
Retrofit Meter Install. Charge
3,297,000
1,719,000
1,719,000
1,719,000
1,719,000
1,719,000
1,719,000
43
DBCP Reimb. &Other
200.000
44
Debt Proceeds
-
43,021,000
45
Total Revenues
2,672,756
45,621,000
6,460,000
5,937,000
5,907,000
5,878,000
5,758,000
5,219,000
5,393,000
3,854,000
3,980,000
46
Expenditures
47
WaterMeter/Main Install. Project
582,000
2,852,000
7,436,000
6,890,000
7,888,000
9,842,000
6,582,000
48
Water Main Replacement Projects
49
Water Taps
75,000
78,000
80,000
83,000
86,000
89,000
92,000
95,000
99,000
102,000
106,000
50
Miscellaneous Water Mains
50,000
52,000
54,000
55,000
57,000
59,000
61,000
64,000
66,000
68,000
71,000
51
Commercial Meter Replacements
15,000
10,000
11,000
6,000
6,000
6,000
6,000
6,000
7,000
7,000
7,000
52
Valve Exercising Program
20,000
21,000
21,000
22,000
23,000
24,000
25,000
25,000
26,000
27,000
28,000
53
Surface WTP Design
2,946,000
54
Raw Water Transmission Main
787,000
55
Calif./St. Claire Water Main
56
Surface WTP Construction
8,280,000
32,137,000
2,217,000
57
UWMP Update
52,000
61,000
58
Vehicles/Equipment
75,000
55,000
19,000
39,000
46,000
48,000
49,000
51,000
53,000
55,000
56,000
60
Total Expenditures
4,550,000
11,400,000
39,758,000
9,312,000
8,106,000
10,068,000
6,876,000
241,000
251,000
259,000
268,000
62
Ending Balance
9,962,000
44183 000
10,885,000
7,510,000
5 311 000
1,121,000
3 000
4,981,000
10 123 000
13,718,000
17,430,000
The Reed Group, Inc. DRAFT-- 7/15/2010
The Reed Group, Inc. DRAFT -- 7/15/2010
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Exhibit
2
City of Lodi -- Water Utility
3
Financial Plan Summary
FY 09-10
4
F Bud et I
FY 10-11 1
FY 11-12 1
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
5
Overall Water Rate Increases -->
2.0%
3.5%
3.5%
3.5%
3.5%
3.5%
3.S%
3.S%
3.5%
3.S%
6
IMF WATER FACILITIES (182)
Jan. 2011
Jan. 2012
Jan. 2013
Jan. 2014
Jan. 2015
Jan. 2016
Jan. 2017
Jan. 2018
Jan. 2019
Jan.2020
64
65
Beginning Balance
(442,341)
(854,000)
(713,000)
(957,000)
94,000
96,000
99,000
102,000
106,000
110,000
114,000
66
Revenues
67
Water Impact Mitigation Fees
13,768
500,000
517,000
1,070,000
2,214,000
2,292,000
2,373,000
2,457,000
2,544,000
2,634,000
2,727,000
68
Interest Earnings
-
(9,000)
(11,000)
(19,000)
2,000
3,000
3,000
4,000
4,000
4,000
4,000
69
Total Revenues
13,768
491,000
506,000
1,051,000
2,216,000
2,295,000
2,376,000
2,461,000
2,548,000
2,638,000
2,731,000
70
Expenditures
77
Well #27 - Pump, Motor & Site Impr.
400,000
-
-
-
-
-
_
_
_
_
-
78
MSC Rehab/Expansion
25,000
350,000
750,000
79
MWWI003-Well #28
-
_
_
_
_
80
Transfer to Fund 180 for Debt Service
-
-
-
-
2,214,000
2,292,000
2,373,000
2,457,000
2,544,000
2,634,000
2,696,000
82
Total Expenditures
425,000
350,000
750,000
-
2,214,000
2,292,000
2,373,000
2,457,000
2,544,000
2,634,000
2,696,000
84
Ending Balance
(854,000)
(713,000)
(957,000)
94,000
96,000
99,000
102,000
106,000
110,000
114,000
149 000
85
Owed Fund 180 for DS
-
-
1,879,000
3,756,000
3,421,000
3,008,000
2,513,000
1,933,000
1,269,000
666,000
-
86
•
Consolidate PCE-TCE funds (Fund 183, 184, and 185) for this study
87
88
Beginning Balance
15,522
-
-
-
_
_
-
_
_
_
_
89
Revenues
90
Transfers from 180, 184, 185
91
Interest Earnings
78
92
Total Revenues
78
93
Expenditures
94
Water PCE-TCE
95
Transfer to Consolidate w/ Fund 184
15,600
97
Total Expenditures
15,600
99
Ending Balance
-
-
-
-
-
-
-
-
-
-
-
100
Funding of PCE-TCE Expenses Assumed to Come From 19x Funds (excluded from model)
101
102
Beginning Balance
(241,630)
3,090,000
761,000
722,000
1,286,000
791,000
240,000
1,048,000
1,885,000
409,000
1,173,000
103
Revenues
104
PCE-TCE Settlements
-
-
-
-
_
_
_
105
Transfer In from Fund 180
-
-
600,000
1,200,000
1,500,000
1,500,000
1,500,000
1,500,000
2,500,000
1,500,000
1,500,000
106
Transfer In from Fund 183
15,600
107
Transfer In from Fund 185
3,666,381
108
Interest Earnings
-
31,000
11,000
14,000
32,000
24,000
8,000
37,000
66,000
14,000
41,000
109
Total Revenues
3,681,981
31,000
611,000
1,214,000
1,532,000
1,524,000
1,508,000
1,537,000
2,566,000
1,514,000
1,541,000
110
Expenditures
111
PCE-TCE Remediation - Capital
-
1,760,000
-
-
1,377,000
1,425,000
-
-
3,292,000
-
-
112
PCE-TCE Remediation - O&M
250,000
600,000
650,000
650,000
650,000
650,000
700,000
700,000
750,000
750,000
750,000
113
Water PCE-TCE Legal
100,000
114
Transfer to Fund 183
-
115
Past Expenditures
117
Total Expenditures
350,000
2,360,000
650,000
650,000
2,027,000
2,075,000
700,000
700,000
4,042,000
750,000
750,000
119
Ending Balance
3,090,000
761 000
722 000
1 286 000
791 000
240 000
1 048 000
1 885 000
409 000
1 173 000
1,964,000.
120
121
Consolidate PCE-TCE funds (Fund 183, 184, and
185) for this
study
122
Beginning Balance
781,681
-
-
-
123
Revenues
124
PCE-TCE Rate Revenue
2,884,700
125
Investment Earnings
126
Total Revenues
2,884,700
127
Expenditures
128
Transferto Fund 183
-
129
Transfer to Consolidate w/ Fund 184
3,666,381
131
Total Expenditures
3,666,381
The Reed Group, Inc. DRAFT -- 7/15/2010
The Reed Group, Inc. DRAFT -- 7/16/2010
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Exhibit
City of Lodi -- Wastewater Utility
Financial Plan Summary
Beginning Balance
Revenues
Wastewater Sales
Infrastructure Replacement
Interest Earnings
Other Revenues
Transfer In for Debt Service (172)
Transfer In for Debt Service (173)
Transfer From/(To) RSF (174)
Total Revenues
Expenditures
Transfer Out to Gen'I Fund (COS)
Transfer Out to WW Cap 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
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
DS Coverage (min. = 1.20)
without COS
WASTEWATER CAPITAL OUTLAY
Beginning Balance
Revenues
Transfer In (from 170-IRC)
Transfer In (from 170-Deprec.)
Investment Earnings
Total Revenues
FY 09-10
25%
2,864,000
11,595,000
-
14,000
180,000
1,792,000
(250,000)
13,331,000
1,451,478
196,202
750,000
703,149
4,791,556
709,501
536,143
34,373
382,733
2,148,800
1,588,050
13,291,985
2,903,015
3,086,000
(182,985)
0.87
1.23
5,035,749
196,202
-
25,000
221,202
FY 10-11
12%
2,903,015
13,025,000
-
32,000
185,300
-
410,000
(250,000)
13,402,300
1,495,000
-
750,000
1,010,352
4,446,170
585,597
591,829
33,499
381,000
2,148,000
1589 000
13,030,447
3 275 000
3,070,000
205,000
1.31
1.67
4,542,000
-
45,000
45,000
FY 11-12
5%
3,275,000
13,716,000
-
57,000
190,600
-
241,000
-
14,204,600
1,540,000
500,000
750,000
1,047,900
4,626,000
606,000
615,000
35,000
379,000
2,139,000
1,S99,000
13,836,900
3,642,700
3,147,000
495,700
1.82
2.20
2,836,000
500,000
-
43,000
543,000
FY 12-13
5%
3,642,700
14,486,000
-
83,000
195,900
-
785,000
-
15,549,900
1,586,000
750,000
1,197,000
1,086,400
4,812,000
628,000
639,000
36,000
381,000
2,138,000
1 599 000
14,852,400
4 340 200
3,226,000
1,114,200
1.71
2.10
358,000
750,000
-
7,000
757,000
FY 13-14
0%
4,340,200
14,655,000
-
121,000
202,200
54,000
982,000
-
16,014,200
1,634,000
2,000,000
-
1,125,900
5,006,000
651,000
665,000
37,000
377,000
2,140,000
1,604,000
15,239,900
5,114,500
3,310,000
1,804,500
1.94
2.33
537,000
2,000,000
-
13,000
2,013,000
FY 14-15
0%
5,114,500
14,824,000
-
168,000
208,500
65,000
2,056,000
-
17,321,500
1,683,000
3,056,000
-
1,167,500
5,207,000
674,000
692,000
38,000
378,000
2,140,000
1 603 000
16,638,500
5 797 500
3,396,000
2,401,500
1.94
2.35
723,000
3,056,000
-
22,000
3 078 000
FY 15-16
0%
5,797,500
14,993,000
-
220,000
214,800
76,000
2,174,000
-
17,677,800
1,733,000
3,174,000
-
1,211,100
5,417,000
698,000
719,000
39,000
378,000
2,135,000
1,607,000
17,111,100
69364,200
3,484,000
2,880,200
1.95
2.37
1,783,000
3,174,000
-
62,000
3,236,000
FY 16-17
0%
6,364,200
15,162,000
-
240,000
221,200
76,000
2,272,000
-
17,971,200
1,785,000
3,272,000
-
1,256,700
5,635,000
723,000
748,000
40,000
377,000
2,134,000
1606 000
17,576,700
6 758 700
3,576,000
3,182,700
1.93
2.36
2,068,000
3,272,000
-
72,000
3 344 000
FY 17-18
0%
6,758,700
15,331,000
-
254,000
227,600
76,000
2,363,000
-
18,251,600
1,839,000
3,363,000
-
1,304,300
5,863,000
749,000
778,000
41,000
376,000
2,127,000
1,614,000
18,054,300
6 956 000
3,673,000
3,283,000
1.93
2.37
4,746,000
3,363,000
-
166,000
3,529,000
FY 18-19
0%
6,956,000
15,500,000
-
261,000
234,000
76,000
2,456,000
-
18,527,000
1,894,000
3,456,000
-
1,353,900
6,100,000
776,000
809,000
42,000
378,000
2,125,000
1 617 000
18,550,900
6 932 100
3,774,000
3,158,100
1.90
2.36
5,083,000
3,456,000
-
178,000
3 634 000
FY 19-20
0%
6,932,100
15,669,000
-
260,000
241,400
76,000
2,555,000
-
18,801,400
1,951,000
3,555,000
-
1,404,500
6,348,000
804,000
842,000
43,000
379,000
2,129,000
1,609,000
19,064,500
6 669 000
3,877,000
2,792,000
1.89
2.37
7,998,000
3,555,000
-
280,000
-3,835,000
2
3
4
5
7
8
9
16
11
12
13
14
15
17
18
19
20
21
22
23
24
25
26
27
28
29
30
32
33
34
35
36
37
38
39
40
41
42
44
The Reed Group, Inc. DRAFT -- 7/16/2010
The Reed Group, Inc. DRAFT -- 7/16/2010
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Exhibit
City of Lodi -- Wastewater Utility
Financial Plan Summary
1
•
Beginning Balance
Revenues
Transfer In (from 170 -IRC)
Transfer In (from 170-Deprec.)
Investment Earnings
Total Revenues
Expenditures
Capital Projects
Replacement Vehicle 04-003
Replacement Vehicle 04-137
Charleston Storm Drain Improvements
Shady Acres Storm Drain PS Improv.
Elm Street Storm Drain Improvements
Misc. System Relocations
Misc. Wastewater Taps
Collect. System Capac. Enhanc. Projects
Wastewater Main Replac./Lining Proj.
Lift Sta. Remote Term. Unit Replac.
Vehicle Replac. (04-116) Boom Truck
Fats, Oils, and Grease Program
Compl. Studies - Cap Impr. & Rollover
Plant Maint. & Land Applic. Area Improv.
Replace 04-95 Vacuum Truck
Decommission Fleet Service Shop
Munic. Service Center PBX Replac.
Munic. Service Center Security Improv.
Munic. Service Center Parking Reconstr.
Munic. Service Center Modular Bldgs.
Lift Station Generator Replacements
Vehicles and Other Equipment
FOG Program and Reporting
Capacity Assurance Plan
White Slough Compliance Studies & Rpts
Plant Maint. & Land Applic. Area Improv.
Pond Lining Project
Laser Alignment Tool
Shop Lathe
White Slough Roadway Improvements
Effluent Receiving Water Char. Study
Report of Waste Discharge
Fence Improvements/Repairs
Plant Security Enhancements
Miscellaneous Reports
Future Projects
Total Expenditures
Ending Balance
FY 09-10
25%
5,035,749
196,202
-
25,000
221,202
-
25,000
25,000
-
-
-
35,000
40,000
100,000
-
20,000
-
-
-
-
-
-
-
-
-
-
100,000
-
25,000
100,000
125,000
70,000
-
-
-
-
-
-
-
50,000
-
-
715,000
4,S42,000
FY 10-11
12%
4,542,000
-
-
45,000
45,000
-
-
100,000
100,000
250,000
35,000
40,000
150,000
100,000
20,000
50,000
25,000
60,000
325,000
340,000
15,000
38,000
10,000
50,000
-
-
-
-
-
-
-
-
25,000
18,000
-
-
-
-
-
-
-
1,751,000
2 836 000
FY 11-12
5%
2,836,000
500,000
-
43,000
543,000
-
-
-
36,000
42,000
104,000
2,080,000
-
-
-
-
-
-
-
-
-
-
260,000
-
156,000
-
-
-
-
-
-
-
31,000
16,000
104,000
26,000
52,000
10,000
104,000
3,021,000
358,000
FY 12-13
5%
358,000
750,000
-
7,000
757,000
-
-
-
-
38,000
43,000
108,000
-
-
-
-
-
-
-
-
-
-
-
-
108,000
162,000
-
-
-
-
-
-
-
-
-
-
-
-
11,000
108,000
578,000
537,000
FY 13-14
0%
537,000
2,000,000
-
13,000
2,013,000
-
-
-
39,000
45,000
112,000
-
-
-
-
-
-
-
-
-
-
-
-
-
169,000
-
-
-
-
1,350,000
-
-
-
-
-
-
-
-
112,000
1,827,000
723,000
FY 14-15
Oa/o
723,000
3,056,000
-
22,000
3,078,000
_
-
-
-
41,000
47,000
117,000
117,000
-
-
-
-
-
-
-
-
-
-
-
-
175,000
-
-
-
-
1,404,000
-
-
-
-
-
-
-
-
117,000
2,018,000
1,783,000
FY 15-16
0%
1,783,000
3,174,000
_
62,000
3,236,000
_
-
-
-
43,000
49,000
122,000
2,433,000
-
-
-
-
-
-
-
-
-
-
-
-
182,000
-
-
-
-
-
-
-
-
-
-
-
-
-
122,000
2,951,000
2 068 000
FY 16-17
0%
2,068,000
3,272,000
_
72,000
3,344,000
_
-
-
-
44,000
51,000
127,000
127,000
-
-
-
-
-
-
-
-
-
-
-
-
190,000
-
-
-
-
-
-
-
-
-
-
-
-
-
127,000
666,000
4,746,000
FY 17-18
0%
4,746,000
3,363,000
_
166,000
3,529,000
_
-
-
-
46,000
53,000
132,000
2,632,000
-
-
-
-
-
-
-
-
-
-
-
-
197,000
-
-
-
-
-
-
132,000
3,192,000
5 083 000
FY 18-19
0%
5,083,000
3,456,000
_
178,000
3,634,000
_
-
-
48,000
55,000
137,000
137,000
-
-
-
-
-
-
-
-
-
205,000
-
-
-
-
-
-
-
-
-
-
-
137,000
719,000
7,998,000
FY 19-20
0%
7,998,000
3,555,000
_
280,000
3,835,000
_
-
-
_
50,000
57,000
142,000
2,847,000
-
-
-
-
-
-
-
-
-
-
-
213,000
-
-
-
-
-
-
-
-
-
-
-
-
-
142,000
3,451,000
8 382 000
3
4
5
37
38
39
40
41
42
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
84
86
The Reed Group, Inc. DRAFT -- 7/16/2010
The Reed Group, Inc. DRAFT -- 7/16/2010
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Exhibit
City of Lodi -- Wastewater Utility
Financial Plan Summary
1
Beginning Balance
Revenues
Transfer In from 173
Transfer In from 170
Interest Earnings
Total Revenues
Expenditures
Capital Projects
White Slough Solids Handling Facility
White Slough Sludge Thickening
Transfer Out to 170 (for DS)
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 DS)
Transfer Out (to 172 for past DS)
Capital Projects
Decommission Old Fleet Services Shop
Lift Station Generator Repl. (Peterson Park;
City-Wide IMF Program Update
MSC Space Planning & Facil. Eval. Study
WW Collect. Mstr. Plan (GP Expan. Areas)
MSC Facility Rehab/Expansion
Total Expenditures
Ending Balance
Owed Fund 170 for DS
Beginning Balance
Revenues
Transfer In from 170
Total Revenues
Expenditures
Transfer Out to 170
Total Expenditures
Ending Balance
FY 09-10
25%
5,393,000
-
750,000
27,000
777,000
-
-
-
-
-
6,170,000
2,170,000
5,634,000
(1,634,000)
2,011,000
226,270
10,000
236,270
1,792,000
-
-
45,000
-
-
-
-
-
1,837,000
410,000
-
-
250,000
250,000
-
-
250,000
FY 30-11
12%
6,170,000
-
750,000
62,000
812,000
-
5,100,000
-
-
5,100,000
1 882 000
2,170,000
534,000
(822,000)
410,000
452,000
4,000
456,000
410,000
-
-
-
100,000
15,000
25,000
75,000
-
625,000
241,000
1,382,000
250,000
250,000
250,000
-
-
500,000
FY 11-12
50/0
1,882,000
-
750,000
28,000
778,000
-
-
-
2r660,000
2,170,000
534,000
(44,000)
241,000
1,930,000
4,000
1,934,000
241,000
-
-
-
364,000
605,000
1 570 000
2,938,000
500,000
-
-
-
500,000
FY 12-13
50/0
2,660,000
-
1,197,000
53 000
1,250,000
-
-
1,731,000
-
1,731,000
2 179 000
2,179,000
-
-
1,570,000
977,000
31,000
1,008,000
785,000
-
-
811,000
1,596,000
982 000
3,950,000
500,000
-
-
-
500,000
FY 13-14
00/0
2,179,000
-
-
54,000
54,000
-
-
-
54,000
54,000
2,179,000
2,179,000
-
-
982,000
2,031,000
25,000
2,056,000
982,000
-
-
-
-
-
-
-
-
982,000
2,056,000
4,768,000
500,000
-
-
-
-
500,000
FY 14-15
0%
2,179,000
-
-
65,000
65,000
-
-
-
65,000
65,000
2 179 000
2,179,000
-
-
2,056,000
2,112,000
62,000
2,174,000
2,056,000
-
-
-
-
-
-
2,056,000
2 174 000
4,512,000
500,000
-
-
-
500,000
FY 15-16
0%
2,179,000
-
-
76,000
76,000
-
-
-
76,000
76,000
2,179,000
2,179,000
-
-
2,174,000
2,196,000
76,000
2,272,000
2,174,000
-
-
2,174,000
2,272,000
4,140,000
500,000
-
-
-
500,000
FY 16-17
0%
2,179,000
-
-
76,000
76,000
-
-
-
76,000
76,000
2 179 000
2,179,000
-
-
2,272,000
2,283,000
80,000
2,363,000
2,272,000
-
-
-
-
-
-
-
-
2,272,000
2 363 000
3,668,000
500,000
-
-
-
-
500,000
FY 17-18
0%
2,179,000
-
-
76,000
76,000
-
-
76,000
76,000
2,179,000
2,179,000
-
-
2,363,000
2,373,000
83,000
2,456,000
2,363,000
-
-
-
-
2,363,000
2456,000
3,110,000
500,000
-
-
-
500,000
FY 18-19
0%
2,179,000
-
-
76,000
76,000
-
-
76,000
76,000
2 179 000
2,179,000
-
-
2,456,000
2,469,000
86,000
2,555,000
2,456,000
-
-
-
-
-
-
-
-
2,456,000
2 555 000
2,461,000
500,000
-
-
-
-
500,000
FY 19-20
0%
2,179,000
-
-
76,000
76,000
-
-
-
76,000
76,000
2r179,000
2,179,000
-
-
2,555,000
2,568,000
89,000
2,657,000
2,555,000
-
-
-
-
-
-
-
2,555,000
2 657 000
1,708,000
500,000
-
-
-
-
500,000
2
3
4
5
88
89
90
91
92
93
94
95
96
97
98
99
101
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
125
127
128
129
130
131
132
-i 3-3
rzl-
135
136
137
139
141
The Reed Group, Inc. DRAFT -- 7/16/2010
The City of Lodi
Public Works
Engineering
firr
■ ■ firs •
f ; _
F
Public hearing on Water/Wastewater rates
July 21, 2010
14A Recommended Action
• Authorize 2% increase of Water flat and metered rates
• Combine Infrastructure Replacement and PCE/TCE
revenues into Operations
• Defer implementation of Water rate increase subject to
review of Alternative Model
• Adopt ENR 20 -Cities Construction Cost Index as basis for
future rate adjustments
• Adopt 12% Wastewater flat and metered rate increase
• Implement Wastewater flat rate immediately
0 Implement Wastewater metered rate program July 2012
Water Rates
• 2% increase effective January 2011
• Projected ENR Increase is 2.10% for two-year
period ending December 2010
• Flat -rate increase subject to Prop 218
• Metered -rate increase subject to Prop 218
N
14A Metered Water Rates
•Revenue neutral
• Half of revenue from fixed charge, half from
metered charge
• State requiring 70 percent of revenue from
metered charge by 2020
• State requires billing beginning January 2011 for
metered homes
N
14A Metered Water Rates
Fixed Monthly Service Charge:
Metered charges:
— Tier 1 (Up to 7,480 gals/month)
—Tier 2 (7,480-37,400 gals/month)
— Tier 3 (>37,400 gals/month)
$21.22
$0.0012/gal
$0.0018/gal
$0.0023/gal
Recommended Wastewater Rates
• Increase of 12% instead of 20% authorized in 2009
— Inclusive of 1.05% ENR Increase
• Effective immediately on flat rates
• Effective July 2012 on metered rates
— One-year delay in metered -rate implementation
• Flat rate increase not subject to Prop 218
• Metered rate -setting and increase subject to Prop
218
INAU? Wastewater Metered Rates
• Revenue neutral
• Half of revenue from fixed charge, half from
metered charge
• Metered billing to begin July 2012
• $21.22 fixed monthly charge (after 12% increase)
• $2.41 per 100 cubic feet (748 gallons)
• Rates subject to additional increases of 5-10% in
July 2011
Rate Comparison 3 BR/4 BR
Wastewater
Avg
CCF
Base
Usage
Future
Existing
Difference
Hazelwood Dr. Res. 1
5.89
$21.22
$14.19
$35.41
$38.84
($3.43)
Hazelwood Dr. Res. 2
10.01
$21.22
$24.12
$45.34
$38.84
$6.50
Pearwood Circle Res.
133.341
$18.95
1 $71.68
1 $90.63
1 $34.68
1 +$55.95
Wastewater
Avg
CCF
Base
Usage
Future
Existing
Difference
il
Live Oak Court Res.
12.33
$21.22
$27.92
$49.14
$46.61
+$2.53
Live Oak Way Res.
19.96
$21.22
$48.10
$69.32
$46.61
+$22.71
Vienna Drive Res.
28.54
1 $21.22
1 $68.78
1 $90.00
$46.61
+$43.99
z '"� Other Agencies j
Y � �
Best management practices guideline
Statewide last 10 years: 8% up to 17%
• Windsor 7% metered
• Rohnert Park 98%
• Petaluma 75%
• Dixon 50%
• Santa Monica 100%
• Del Mar 50%
14A Recommended Action
•Adopt 12% increase to Wastewater flat and metered
rates
• Immediate increase in Wastewater flat rate
• Implement Wastewater metered rate program in July
2012
• Adopt 2% increase in Water rates
• Eliminate Infrastructure Replacement and PCE/TCE
line items
• Defer Water rate increases until after review of
Alternative Model
• Adopt ENR 20 Cities Construction Cost Index as
basis for future rate adjustments
Questions?
I
Item No. H-3
Exhibit B
Exhibit
City of Lodi -- Wastewater Utility
current ana Proposea wastewater nates
Residential
Percentlncrease
12
Flat Rates ($/month)
1 Bedroom
$
20.81
$ 23.30 $ 231
2 Bedroom
$
27.74
$
31.07
3 Bedroom
$
34.68
$
38.84
4 Bedroom
$
41.61
$
46.61 $46.69
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.)
$
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 MG)
$
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 -- 07/19/2010
RESOLUTION NO. 2010-123
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING USAGE-BASEDAND FLATWATER 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. 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 X01 1;
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. On 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, 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 cf 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. Levv of Charqes. Pursuant to Sections 13.08.010,13.12.240,and
13.16.310 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 Adiustments. 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
-------------------------------------------------------------------
-------------------------------------------------------------------
hereby certify that Resolution No. 2010-123 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 — Hansen, Johnson, and Mayor Katzakian
NOES: COUNCIL MEMBERS — Hitchcock and Mounce
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
2010-123
EXH'iI'
^A.,nc�a _� I
City of Lodi -- Water Utility
Metered Water Rates
Current(l)
Jan.2011
Jan. 2012
Jan. 2013
Jan. 2014
Jan. 2015
.Ian. 2016
Percent Increase -->
2.0%
3.5%
Service Charge ($/month)
3.5%
3.5%
3.58
3.5%
Flat Rates ($/month)
Single Family Residential (2)
Single Family Residential Unit
($/month)
Up to 3/4" Meter
$
22.25
$
22.70
$ 23.50
$
1 Bedroom
$
27.98
$ 28.54
$
29.54
$
30.57
$
31.64
$
32.75
$
33.90
2 Bedroom
$
33.61
$ 34.28
$
35.48
$
36.72
$
38.01
$
39.34
$
40.72
3 Bedroom
$
40.28
$ 41.09
$
42.53
$
44.02
$
45.56
$
47.15
$
48.80
4 Bedroom
$
48.40
$ 49.37
$
51.10
$
52.89
$
54.74
$
56.66
$
58.64
5 Bedroom
$
58.06
$ 59.22
$
61.29
$
63.44
$
65.66
$
67.96
$
70.34
6 Bedroom
$
69.67
$ 71.06
$
73.55
$
76.12
$
78.78
$
81.54
$
84.39
7 Bedroom
$
83.58
$ 85.25
$
88.23
$
91.32
$
94.52
$
97.83
$
101.25
Multi -Family Residential Unit ($/month)
$
42.35
$
43.85
11/2" Meter
$
56.35
$
57.50
$ 59.50
$
1 Bedroom
$
24.02
$ 24.S0
$
25.36
$
26.25
$
27.17
$
28.12
$
29.10
2 Bedroom
$
28.81
$ 29.39
$
30.42
$
31.48
$
32.58
$
33.72
$
34.90
3 Bedroom
$
34.57
$ 35.26
$
36.49
$
37.77
$
39.09
$
40.46
$
41.88
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter
$
22.25
$
22.70
$ 23.50
$
24.30
$
25.15
$
26.05
$
26.95
1" Meter
$
36.15
$
36.85
$ 38.15
$
39.50
$
40.90
$
42.35
$
43.85
11/2" Meter
$
70.60
$
72.00
$ 74.50
$
77.10
$
79.80
$
82.60
$
85.50
2" Meter
$
112.10
$
114.35
$ 118.35
$
122.50
$
126.80
$
131.25
$
135.85
Multi -Family and Non-Residential(3)
5/8" Meter
$
25.64
$
22.70
$ 23.50
$
24.30
$
25.15
$
26.05
$
26.95
3/4" Meter
$
28.17
$
22.70
$ 23.50
$
24.30
$
25.15
$
26.05
$
26.95
1" Meter
$
42.27
$
36.85
$ 38.15
$
39.50
$
40.90
$
42.35
$
43.85
11/2" Meter
$
56.35
$
57.50
$ 59.50
$
61.60
$
63.75
$
66.00
$
68.30
2" Meter
$
70.45
$
71.85
$ 74.35
$
76.95
$
79.65
$
82.45
$
85.35
3" Meter
$
98.63
$
100.60
$ 104.10
$
107.75
$
111.50
$
115.40
$
119.45
4" Meter
$
126.80
$
129.35
$ 133.90
$
138.60
$
143.45
$
148.45
$
153.65
6" Meter
$
183.16
$
186.80
$ 193.35
$
200.10
$
207.10
$
214.35
$
221.85
8" Meter
$
239.48
$
244.30
$ 252.85
$
261.70
$
270.85
$
280.35
$
290.15
10" Meter
$
295.83
$
301.75
$ 312.30
$
323.25
$
334.55
$
346.25
$
358.35
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1- 0 to 10 CCF/month
$
0.86
$
0.88
$ 0.91
$
0.94
$
0.97
$
1.00
$
1.04
Tier 2 - 11 to 50 CCF/mont
$
1.29
$
1.32
$ 1.37
$
1.42
$
1.47
$
1.52
$
1.57
Tier3 - Over 50 CCF/montf
$
1.71
$
1.74
$ 1.80
$
1.86
$
1.93
$
2.00
$
2.07
Multi -Family and Non-Residential(3)
All Water Usage
$
0.789
$
0.88
$ 0.91
$
0.94
$
0.97
$
1.00
$
1.04
Votes:
(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 -- 7/6/2010
�Fxhihif R�
Exhibit
City of Lodi --Wastewater Utility
Residential
Percent Increase
12
Flat Rates ($/month)
1 Bedroom
$
20.81
$
23.30
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 -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 MG)
$
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 Decemberthrough February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT-- 07/21/2010
City cf Lodi --Wastewater Utility
:water Rates
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
Dotes:
(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, I n c. DRAFT -- 07/06/2010
CITY CLERK'S CERTIFICATE
RE: WRITTEN PROTESTS
PROPOSED WASTEWATER RATE INCREASE
I, RAND[ JOHL, City Clerk of the City of Lodi hereby certify that City Clerk
staff have personally received and assembled all written protests returned by
mail or delivered in person.
At the conclusion of the public hearing on July 21, 2010, 1 tabulated the
written protests and certify the result of that tabulation to be as follows:
TOTAL NUMBER OF PROPERTIES: 33,678
on which the rates are imposed as shown
on the last equalized assessment roll of
San Joaquin County and City utility billing
records pursuant to Proposition 218
requirements
TOTAL NUMBER OF WRITTEN PROTESTS RECEIVED: 52
to the proposed increaseto monthly
wastewater rates
make is c
thertification on July 22, 201 ^
CITY CLERK
N:\Administration\CLERK\Election\Prop_218\Certification_Results_WWrates2.doo
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER 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 BILL TO:
LNS ACCT. #0510052
DATED: FRIDAY, JUNE 11,2010
ORDERED B Y RANDI JOHL
CITY CLERK
J IFER M. OBISON, MC
ASSISTANT CITY CLERK
RANDI JOHL, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
MARIA BECERRA
ADMINISTRATIVE CLERK
Faxed to the Sentinel at 369-1084 at (time) on (date) (pages)
LNS Phoned to confirm receipt of all pages at (time) _CF _MB JMR (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 ExhibitA) 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.
JE&NIFER 9. ROBISON, CMC
ASSISTANT CITY CLERK
N:\Administration\CLERK\Forms\DECPOSTPW.DOC
ORDERED BY:
RANDI JOHL
CITY CLERK
MARIA BECERRA
ADMINISTRATIVE CLERK
• CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
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
NOTICE IS 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 Exhibit 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 cf 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" of the Government Code, or an any other
matter related to the proposed charges or their method of adoption.
Byfdfyigr of the Lodi City Council:
R I
City Clerk
Dated: May 19,2010
-7, '�W�►
ue
J:\CITYCLRK\FORMS\PH NOTICE publication SoffdWsleRetes_PropM.doc 6/8/10
RESOLUTION NO. 2010-
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING USAGE-BASEDAND FLATWATER AND
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 procedurewas 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 Exhibit A;
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;
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 pursuant to 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. On 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, 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 Cf Lodi as
follows:
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Lew 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 Adiustments. 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
-------------------------------------------------------------------
-------------------------------------------------------------------
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 ($/month)
Percentlncrease
2
4
4
4
Single Family Residential Unit ($/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
I" 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
Ter 3 - Over50 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
Notes:
(1) Revised July 1, 2008.
(2) Current residentiai 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
Exhibit
City of Lodi -- Wastewater Utility
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
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
$
46.61
5 Bedroom
$
48.55
$
54.37
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= 06/07/2010
I
and Pr000sed Water
Residential Wastewater Rates
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:
(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