HomeMy WebLinkAboutAgenda Report - November 21, 2012 C-17 PHAGENDA ITEM '
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&% CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Set Public Hearing for December 19, 2012, to Consider Adopting Resolution
Setting Pre -Approved Engineering News Record Adjustment Indexfor
Usage -Based and Flat Water Rates
MEETING DATE: November21,2012
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Set public hearing for December 19, 2012, to consider adopting
resolution setting pre -approved Engineering News Record
adjustment index for usage -based and flat water rates.
BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the
past few years, as summarized below. The recommended action at
the December 19, 2012, City Council meeting will be to implement a
rate increase of 2.5 percent effective January 1, 2013, as presented in Exhibit A.
On May 20, 2009, Council waived the Consumer Price Index (CPI) adjustment of water rates based upon
a lack of new information supporting neither an increase nor a decrease. On January 6, 2010, Council
received advisory usage -based water rates for the purpose of research and customer billing comparisons.
On July 21, 2010, Council approved a change to 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 was recommended so that rate changes occur at the lowest usage time of
the year. Council also changed the water rate adjustment index from the CPI to the Engineering News
Record (ENR), effective January I , 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.
Council approved a professional services agreement with The Reed Group on August 6,2008, for the
preparation of a water utility financial model. Staff continues to update and use this model to forecast the
performanceof the utility through FY 2019/20 while incorporating substantial capital investments,
including the surface water treatment facilities, water meter program, infrastructure replacement program,
property owner meter payments and PCE/TCE remediation costs. The recommended rates presented in
Exhibit A were developed using this tool.
The ENR -based adjustment for the period October 2011 through October 2012 is 2.5 percent. It is staffs
recommendation that the water rate increase be 2.5 percent. For a resident still on the flat rate, the
monthly charge for a three-bedroom home will increase from $41.99 to $43.04. A metered resident using
1,500 cubic feet of water per month will see an increase from $38.95 to $39.88.
FISCAL IMPACT: Increased revenues to the water utility are required to keep up with cost of
service increases and new mandated costs.
FUNDING AVAILABLE: Not applicable. A'a, J.'e',�'
F. Wally giandelin
Public Works Director
Prepared by RebeccaAreida-Yadav, ManagementAnalyst
Attachment
cc: Steve Mann, Information Systems Manager
Larry Parlin, Deputy PublicWorks Director— Utilities
APPROVED:
Wonradt Bartlam, City Manager
K\WPWILITY RATESWW WW12013 WWW Rage Increase\CCSetPH WaterRates.doc
10/31/2012
Exhibit A
City of Lodi -- Water Utility
Current and Proaosed Water Rates
Current
Jan. 2013
Flat Rates ($/month)
Percent increase
2.5%
Single Family Residential Unit ($/month)
1 Bedroom
$
29.17
$
29.90
2 Bedroom
$
35.03
$
35.91
3 Bedroom
$
41.99
$
43.04
4 Bedroom
$
50.46
$
51.72
5 Bedroom
$
60.52
$
62.03
6 Bedroom
$
72.62
$
74.44
7 Bedroom
$
87.13
$
89.31
Multi -Family Residential Unit ($/month)
1 Bedroom
$
25.04
$
25.67
2 Bedroom
$
30.04
$
30.79
3 Bedroom
$
36.04
$
36.94
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
$
23.20
$
23.78
1" Meter
$
37.66
$
38.60
11/2" Meter
$
73.58
$
75.42
2" Meter
$
116.87
$
119.79
Multi -Family and Non -Residential
5/8" Meter
$
23.20
$
23.78
3/4" Meter
$
23.20
$
23.78
1" Meter
$
37.66
$
38.60
11/2" Meter
$
58.77
$
60.24
2" Meter
$
73.43
$
75.27
3" Meter
$
102.81
$
105.38
4" Meter
$
132.20
$
135.51
6" Meter
$
190.91
$
195.68
8" Meter
$
249.67
$
255.91
10" Meter
$
308.39
$
316.10
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1- 0 to 10 CCF/month
$
0.90
$
0.92
Tier 2 - 11 to 50 CCF/month
$
1.35
$
1.38
Tier 3 - Over 50 CCF/month
$
1.78
$
1.82
Multi -Family and Non -Residential
All Water Usage
$
0.90
$
0.92
�yOF�
Please immediately confirm receipt
df thisfax by calling 333-6702
CITY OF LODI
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT
INDEX FOR USAGE-BASEDAND FLATWATER RATES
PUBLISH DATE: WEDNESDAY, NOVEMBER 28,2012
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK
LNS ACCT. 00510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: MONDAY, NOVEMBER 26,2012
ORDERED B Y RANDI JOHL
CITY CLERK
AtANIFER W ROBISON. CMC
, SSISTAN71CITY CLERK
fonns\advins.doc
MARIA BECERRA
ADMINISTRATIVE CLERK
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR
USAGE-BASEDAND FLATWATER RATES
On Monday, November 26, 2012, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water rates (attached and marked as
Exhibit A) was posted at the following locations:
Lodi Public Library
Lodi City Clerks Office
Lodi City Hall Lobby
Lodi Carnegie Forum
declare under penalty of perjury that the foregoing is true and correct.
Executed on November 26, 2012, at Lodi, California.
rNNIFER VA. ROBISON,
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: December 19, 2012
Time: 7:00 p.m.
For information regarding this notice please contact:
Rand! Johl
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
X.F11 Y B"'
NOTICE IS HEREBY GIVEN that on Wednesday, December 19, 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 usage -based and flat water rates (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 arty 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:
Ran ohI
City Clerk
Dated: November 21, 2012
Amroved as to form:
D. Stephen Schwabauer
City Attorney
JACITYCLRKIFORMSIPH NOTICE publicationWaterRates.doc 11120/12
Exhibit A
City of Lodi-- Water Utility
current ana rroaosea water Kates
Current
Jan. 2013
Flat Rates ($/month)
Percent Increase
2.5%
Single Family Residential Unit ($/month)
1 Bedroom
$
29.17
$
29.90
2 Bedroom
$
35.03
$
35.91
3 Bedroom
$
41.99
$
43.04
4 Bedroom
$
50.46
$
51.72
5 Bedroom
$
60.52
$
62.03
6 Bedroom
$
72.62
$
74.44
7 Bedroom
$
87.13
$
89.31
Multi -Family Residential Unit ($/month)
1 Bedroom
$
25.04
$
25.67
2 Bedroom
$
30.04
$
30.79
3 Bedroom
$
36.04
$
36.94
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
$
23.20
$
23.78
1" Meter
$
37.66
$
38.60
11/2" Meter
$
73.58
$
75.42
2" Meter
$
116.87
$
119.79
Multi -Family and Non -Residential
5/8" Meter
$
23.20
$
23.78
3/4" Meter
$
23.20
$
23.78
1" Meter
$
37.66
$
38.60
11/2" Meter
$
58.77
$
60.24
2" Meter
$
73.43
$
75.27
3" Meter
$
102.81
$
105.38
4" Meter
$
132.20
$
135.51
6" Meter
$
190.91
$
195.68
8" Meter
$
249.67
$
255.91
10" Meter
$
308.39
$
316.10
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1- 0 to 10 CCF/month
$
0.90
$
0.92
Tier 2 - 11 to 50 CCF/month
$
1.35
$
1.38
Tier 3 - Over 50 CCF/month
$
1.78
$
1.82
Multi -Family and Non -Residential
All Water Usage
$
0.90
$
0.92