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Home My WebLink AboutAgenda Report - March 21, 2012 C-11 PHAGENDA ITEM '0'' A% CITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Set Public Hearing for April 18, 2012, to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Wastewater Rates for Residential, Commercial and Industrial Customers MEETING DATE: March 21, 2012 PREPARED BY: Public Works Director RECOMMENDED ACTION: Set public hearingfor April 18, 2012, to consider adopting resolution setting pre -approved Engineering News Record Adjustment Index for wastewater rates for residential, commercial and industrial customers. BACKGROUND INFORMATION: 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. Staff has regularly updated the Wastewater Utility Financial Plan with the assistance of The Reed Consulting Group, Inc., of Sacramento. A copy of the current Financial Plan is attached as ExhibitA. The recommended rate adjustments in the Financial Plan are 5 percent beginning July 1, 2012, and an estimated ENR -based indexing of 3 percent beginning July 1, 2013. The rates for this next year, attached as Exhibit B, reflect an increase of 3 percent, which is lower than the 5 percent previously approved by Council. The rate increase for this past year was 5 percent, lowerthan the 10 -percent increase anticipated in 2009. FISCAL IMPACT: Increased revenues to the wastewater utility are required to keep up with cost of service increases and new mandated costs. FUNDING AVAILABLE: Not applicable. F. Wally San in Public Works Director FWS/pmf Attachments cc: Information Systems Manager Deputy PublicWorks Director— Utilities APPROVED: Konradt Bartlam, City Manager K:\WP\UTILITY RATES\W WW\2012 WWW Ratelncrease\CCSetPH_WWRates.doc 3/7/2012 City of Lodi -- Wastewater Utility Financial Plan Summary Beginning Balance Revenues Wastewater Sales Infrastructure Replacement Interest Earnings Other Revenues Transfer Infor Debt Service (172) Transfer Infor Debt Service (173) Transfer From/(To) Rate Stabilization Fund (174) Total Revenues Expenditures Transfer Out to Gen'I Fund (Cost of Services) Transfer Out to WW Capital Outlay (171) Transfer Out To WW Cap. Rsrv. (172) Administration & Other Plant Maintenance Sanitary System Maintenance Storm Drainage Maintenance Industrial System Maintenance 2003 Wastewater COP Debt Service 2004 Wastewater COP Debt Service 2007 Wastewater COP Debt Service Total Expenditures Ending Balance Operating Reserve (25%) Available Balance Debt Service Coverage (min. = 1.20) without COST Beginning Balance Exhibit A FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 3% 3% 3,407,000 4,065,272 5,695,794 5,672,916 5,231,638 4,005,960 3,927,882 3,536,304 3,472,226 13,308,990 13,735,000 14,175,000 14,629,000 15,097,000 15,580,000 16,078,000 16,592,000 17,123,000 20,540 91,000 155,000 185,000 201,000 158,000 155,000 141,000 139,000 165,000 170,500 176,000 181,500 187,000 192,500 198,000 203,500 210,100 4,349,290 54,000 67,000 81,000 94,000 94,000 94,000 94,000 94,000 1,865,000 1,495,000 14,000 83,000 98,000 113,000 129,000 297,000 415,000 15,359,530 15,545,500 14,587,000 15,159,500 15,677,000 16,137,500 16,654,000 17,327,500 17,981,100 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,451,478 1,000,000 1,000,000 1,500,000 2,200,000 3,200,000 2,200,000 2,700,000 2,700,000 3,700,000 750,000 2,466,794 2,395,916 1,881,638 579,960 423,882 (49,696) (200,774) (1,053,252) 1,619,450 1,356,500 1,313,400 1,361,300 1,411,200 1,463,100 1,517,100 1,573,100 1,632,100 4,349,290 4,522,000 4,701,000 4,887,000 5,080,000 5,282,000 5,492,000 5,712,000 5,941,000 678,880 703,000 729,000 755,000 782,000 810,000 840,000 870,000 901,000 698,120 726,000 755,000 785,000 817,000 850,000 885,000 921,000 958,000 37,040 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 379,000 381,000 377,000 378,000 378,000 377,000 376,000 378,000 379,000 2,139,000 2,138,000 2,140,000 2,140,000 2,135,000 2,134,000 2,127,000 2,125,000 2,129,000 1,599,000 1,599,000 1,604,000 1,603,000 1,607,000 1,606,000 1,614,000 1,617,000 1,609,000 14,701,258 13,914,978 14,609,878 15,600,778 16,902,678 16,215,578 17,045,578 17,391,578 18,745,578 4,065,272 5,695,794 5,672,916 5,231,638 4,005,960 3,927,882 3,536,304 3,472,226 2,707,748 3,238,000 3,229,000 3,277,000 3,350,000 3,426,000 3,504,000 3,586,000 3,673,000 3,761,000 25% 827,272 2,466,794 2,395,916 1,881,638 579,960 423,882 (49,696) (200,774) (1,053,252) 1.26 1.47 1.44 1.49 1.54 1.58 1.63 1.67 1.72 1.61 1.82 1.79 1.84 1.90 1.93 1.98 2.02 2.07 5,353,090 3,999,662 3,979,662 627,662 665,662 328,662 1,964,662 1,291,662 3,357,662 Revenues Transfer In (from 170) Transfer In (from 170-Deprec.) Other Revenue Investment Earnings Total Revenues Expenditures Capital Projects Financial Planning Vacumm Truck Engine Repl Replacement Vehicle 04-003 Replacement Vehicle 04-137 Replacement Vehicle 04-083 & 04-041 Install CARB particulate filters Storm Impry Misc. System Relocations Misc. Wastewater Taps Collect. System Capac. Enhanc. Projects Wastewater Main Replac./Lining Proj. Storm Drain Trash Handling System Lift Sta. Remote Term. Unit Replac. Fats, Oils, and Grease Program Replace 04-95 Vacuum Truck Decommission Fleet Service Shop Munic. Service Center PBX Replac. Munic. Service Center Parking Reconstr. Lift Station Generator Replacements Vehicles and Other Equipment White Slough Compliance Studies & Rpts Plant Maint. & LandApplic. Area Improv. Irrigation Improvements- WSWPCF Primary Chain & Flights Boiler Retube FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 1,000,000 1,000,000 500,000 1,000,000 1,500,000 700,000 2,500,000 700,000 1,500,000 700,000 2,000,000 700,000 2,000,000 700,000 3,000,000 700,000 1,000,000 1,000,000 1,500,000 2,200,000 3,200,000 2,200,000 2,700,000 2,700,000 3,700,000 27,179 - - - - - - - - 62,500 15,000 102,000 38,000 39,000 41,000 43,000 44,000 46,000 48,000 50,000 65,000 43,000 45,000 47,000 49,000 51,000 53,000 55,000 57,000 22,000 225,000 23,000 243,000 25,000 263,000 27,000 285,000 1,500,000 108,000 2,250,000 117,000 2,433,000 127,000 2,632,000 137,000 2,847,000 54,000 562,000 35,000 365,000 22,000 - - 1,000 - - - - - - 73,000 - - - - 74,000 108,000 58,000 150,000 162,000 169,000 175,000 182,000 190,000 197,000 205,000 213,000 164,000 100,000 - - 75,000 75,000 75,000 75,000 - - 19,749 20,000 - - Headworks Ventilation Upgrade Equalization Pond Check Valve Maintenance Shop Rollup Doors Boiler System Inline Water Conditioner Roadway Improvements Fence Repairs/Upgrades Anaerobic Digester Painting Pond Lining Project Plant Security Enhancements Miscellaneous Future Projects Total Expenditures Ending Balance Beginning Balance Revenues Transfer In from 173 Transfer Infrom 170 Interest Earnings Total Revenues Expenditures Capital Projects White Slough Solids Handling Facility White Slough Sludge Thickening Transfer Out to 170 (for Debt Service) Total Expenditures Ending Balance FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 30,000 15,000 15,000 15,000 50,000 50,000 50,000 25,000 25,000 25,000 25,000 130,000 1,350,000 1,404,000 108,000 112,000 117,000 122,000 127,000 132,000 137,000 142,000 2,353,428 1,020,000 4,852,000 2,162,000 3,537,000 564,000 3,373,000 634,000 3,594,000 3,999,662 3,979,662 627,662 665,662 328,662 1,964,662 1,291,662 3,357,662 3,463,662 6,010,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 750,000 90,000 54,000 67,000 81,000 94,000 94,000 94,000 94,000 94,000 840,000 54,000 67,000 81,000 94,000 94,000 94,000 94,000 94,000 4,156,000 54,000 67,000 81,000 94,000 94,000 94,000 94,000 94,000 4,156,000 54,000 67,000 81,000 94,000 94,000 94,000 94,000 94,000 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 2,694,159 PV 11-12 Pd 12-13 Pd 13-14 Ped 14-15 PV 15-16 Ped 16-17 PV 17-18 PV 18-19 PV 19-ZO Restricted Debt Service Reserve 7,332,103 2,395,156 2,395,156 2,395,156 7395,156 2,395,156 2,395,156 2,395,156 2,395,156 2007 COP Proceeds (w/ fiscal agent) 299,003 299,003 999.003 999,003 999.003 299,003 299,003 799.003 999.003 Cash Deficit (amt. owed for past DS) 63,053 Beginning Balance 2,172,523 124,5Z3 13,523 82,523 97,523 112,523 128,5Z3 297,140 415,140 Revenues Wastewater IMF 397,000 770,000 333,000 346,000 360,000 375,000 390,000 405,000 421,000 Wastewater IMF from PCE/TCE & WTP Interest Earnings 33,000 14,000 2,000 3,000 d,000 d,000 10,000 15,000 Total Revenues 430,000 784,000 333,000 348,000 363,000 379,000 394,000 dISA000 436,000 Expenditures Transfer Out (to 170 for Debt Service) 1,865,000 1,495,000 14,000 83,000 98,000 113,000 199.000 297,000 dIS,000 Transfer Out (to 172 for past Debt Service) Transfer Out (refund PCE/TCE IMF) ZS01000 2501000 ZS01000 ZS01000 96,383 Capital Projects Decommission Old Fleet Services Shop City-Wide IMF Program Update 13,000 Total Expenditures 1,878,000 1,495,000 264,000 333,000 348,000 363,000 225,383 297,000 dIS,000 Ending Balance 724,5Z3 13,523 82,523 97,523 112,523 128,523 297,140 415,140 436.1dO Owed to Fund 170 for Debt Service 370,000 2,223,000 4,007,000 5,775,000 7,527,000 9,263,000 10,832,000 12,282,000 4" Beginning Balance 5001000 5001000 5001000 5001000 5001000 5001000 5001000 5001000 5001000 Revenues Transfer In from 170 Total Revenues - - - - - - - - - Expenditures Transfer Out to 170 - - - - - - - - Total Expenditures - - - - - - - - - FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Ending Balance Aggregate End -of -Year Balance 11,984,000 12,883,000 9,577,000 9,189,000 7,641,000 9,215,000 8,319,000 10,439,000 9,802,000 Operating Reserve (25%) 3,238,000 3,229,000 3,277,000 3,350,000 3,426,000 3,504,000 3,586,000 3,673,000 3,761,000 Restricted DS Reserve 2,332,103 2,395,156 2,395,156 2,395,156 2,395,156 2,395,156 2,395,156 2,395,156 2,395,156 2007 COP Proceeds 299,003 299,003 299,003 299,003 299,003 299,003 299,003 299,003 299,003 Rate Stabilization Fund 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Net Available for Capital Projects 5,614,894 6,459,841 3,105,841 2,644,841 1,020,841 2,516,841 1,538,841 3,571,841 2,846,841 City of Lodi-- Wastewater Utility Financial Plan Assumptions FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Financial Assumptions General Inflation 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Labor Inflation 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% Material/Energy Inflation 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Construction Inflation 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Interest Earnings 1.5% 2.0% 2.5% 3.0% 3.5% 3.5% 3.5% 3.5% 3.5% Cust. Growth (SSUs) 50 51 52 53 54 55 56 Wastewater Mitigation Impact Fee $ 6,140 $ 6,390 $ 6,650 $ 6,920 $ 7,200 $ 7,490 $ 7,790 $ 8,100 $ 8,420 Exhibit B City of Lodi -- Wastewater Utility current ana Proposed wastewater Rates Notes: (1) Winter water usage determined as average monthly usage from December through February. Current July 2012 Residential Percent Increase 3 Flat Rates ($/month) 1 Bedroom $ 24.47 $ 25.20 2 Bedroom $ 32.62 $ 33.60 3 Bedroom $ 40.78 $ 42.00 4 Bedroom $ 48.93 $ 50.40 5 Bedroom $ 57.09 $ 58.80 6 Bedroom $ 65.24 $ 67.20 7 Bedroom $ 73.40 $ 75.60 Usage -Based Rates Service Charge ($/month) $ 22.28 $ 22.95 Usage Charge($/CCF) (1) $ 2.53 $ 2.61 Non -Residential ($/month) Moderate Strength (per SSU) $ 32.62 $ 33.60 High Strength Flow (per MG, annual basis) $ 3,303.25 $ 3,402.35 BOD (per 1,000 lbs, annual basis) $ 545.12 $ 561.47 SS (per 1,000 lbs, annual basis) $ 340.84 $ 351.07 Srease Interceptor& Septic Holding Tank Waste within City Limits (per 1,000 gal.) $ 288.63 $ 297.29 Septic (only) Holding Tank Waste Dutside City Limits (per 1,OOOgal.) $ 612.73 $ 631.11 Disposal to Storm Drain System (per MG) $ 303.18 8 312.28 Notes: (1) Winter water usage determined as average monthly usage from December through February. yOF� 0 Please immediately confirm receipt of thisfax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS PUBLISH DATE: SATURDAY, MARCH 24,2012 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO LNS ACCT. #0510052 DATED: THURSDAY, MARCH 22,2012 ORDERED BY: RANDI JOHL CITY CLERK ,IfhNIFER . ROBISON, CMC ASSISTAN CITY CLERK fonns\advins.doc RANDI JOHL, CITY CLERK City of Lodi P.O. Box 3006 Lodi. CA 95241-1910 MARIA BECERRA ADMINISTRATIVE CLERK DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS On Thursday, March 22, 2012, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider adopting resolution setting pre -approved Engineering News Record adjustment index for 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 March 22, 2012, at Lodi, California. r (�%NNIFENJM. ROBISON, CMC ASSISTANT CITY CLERK N:\Administration\CLERK\Fonns\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: April 18,2012 Time: 7:00 p.m. For information regarding this notice please contact: Randi Johl City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING E }'hSiT A NOTICE IS HEREBY GIVEN that on Wednesday, April 18,2012, 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 pre -approved Engineering News Record adjustment index for wastewater rates for residential, commercial, and industrial customers (as identified on the attached Exhibit A). Information regarding this item may be obtained in the Public Works Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 W. Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk at, or prior to, the public hearing. By Order of the Lodi City Council: ndi Johl ity Clerk Dated: March 21, 2012 D. Stephen Schwabauer City Attorney JACITYURKIFORMSIPH NOTICE publicationWWRates.doc 3/19/12 EXHiibiT Al City of Lodi -- Wastewater Utility current ana rro osea wastewater nates Current July 2012 Residential Percent Increase 3 Flat Rates ($/month) 1 Bedroom $ 24.47 $ 25.20 2 Bedroom $ 32.62 $ 33.60 3 Bedroom $ 40.78 $ 42.00 4 Bedroom $ 48.93 $ 50.40 5 Bedroom $ 57.09 $ 58.80 6 Bedroom $ 65.24 $ 67.20 7 Bedroom $ 73.40 $ 75.60 Usage -Based Rates Service Charge ($/month) $ 22.28 $ 22.95 Usage Charge ($/CCF) (1) $ 2.53 $ 2.61 Non -Residential ($/month) Moderate Strength (per SSU) $ 32.62 $ 33.60 High Strength Flow (per MG, annual basis) $ 3,303.25 $ 3,402.35 BOD (per 1,000 lbs, annual basis) $ 545.12 $ 561.47 SS (per 1,000 lbs, annual basis) $ 340.84 $ 351.07 3rease Interceptor& Septic HoldingTank Naste within City Limits (per 1,000 gal.) $ 288.63 $ 297.29 >eptic (only) Holding Tank Waste Dutside City Limits (per 1,000 gal.) $ 612.73 $ 631.11 )isposal to Storm Drain System (per MG) $ 303.18 $ 312.28 Notes: (i) Winter water usage determined as average monthly usage from December through February.