HomeMy WebLinkAboutAgenda Report - December 19, 2012 G-01 PHAGENDA ITEM i 1
A% CITY OF LODI
COUNCIL COMMUNICATION
Im
AGENDA TITLE: Public Hearing to Consider Adopting Resolution Setting Pre -Approved Engineering
News Record Adjustment Index for Usage -Based and Flat Water Rates
MEETING DATE: December 19,2012
PREPARED BY: PublicWorks Director
RECOMMENDED ACTION: Public hearing to consider adopting resolution setting pre -approved
Engineering News Record adjustment indexfor 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 is to
implement 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 indexfrom the CPI to the Engineering News
Record (ENR), effective January 1, 2012, because this index better reflectsthe 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
performance of 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 $39.88.
FISCAL IMPACT: Increased revenuesto the water utility are requiredto keep up with cost of
service increases and new mandated costs.
FUNDING AVAILABLE: Not applicable.
F. Wally Sfindelin
PublicWorks Director
Prepared by Rebecca Areida-Yadav, ManagementAnalyst
Attachment
cc: Steve Mann, Information Systems Manager
Lary Parlin, Deputy PublicWorks Director— Utilities
APPROVED:
yKonradt Bartlam, City Manager
KAMUTILITY RATES\W WW\2013 W WW Rate lncrease\CCPR WaterRates.dpc 12/4/2012
Exhibit A
City of Lodi -- Water Utility
current and Proposed Water Rates
Current
Jan. 2013
Flat Rates ($/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
1 1/2" 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
1 1/2" 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
RESOLUTION NO. 2012-211
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING PRE -APPROVED ENGINEERING NEWS
RECORD ADJUSTMENT INDEX FOR USAGE -BASED
AND FLAT RATE MONTHLY WATER RATES
WHEREAS, Resolution No. 2010-123 approved annual water rate increases in
an amount notto exceed the percentage change in the Engineering News Record (ENR)
Twenty Cities Annual Average Index beginning January 2012 through January 2016. A
Proposition 218 procedure was conducted that validated this action; and
WHEREAS, staff has regularly updated the Water Utility Financial Plan with the
assistance of the The Reed Consulting Group, Inc., of Sacramento; and
WHEREAS, the current water rate adjustment reflects a 2.5 percent increase.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
set pre -approved Engineering News Record adjustment index for usage -based and flat
rate monthly water rates as outlined on Exhibit A attached with the effective date of the
increase to be January 1 2013.
Dated: December 19, 2012
I hereby certify that Resolution No. 2012-211 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 19, 2012, by the
following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
1 JOHIL
City Clerk
2012-211
Exhibit A
City of Lodi -- Water Utility
current ana vr000sea water nates
Metered Water Rates
Current
Jan. 2013
Flat Rates ($/month)
Service Charge ($/month)
Percent Increase
Single Family Residential
2.5%
Single Family Residential Unit ($/month)
Up to 3/4" Meter
$
23.20
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)
11/2" Meter
$
58.77
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
Ail Water Usage
$
0.90
$
0.92
r
The City of Lodi ,t
Public Workshy -
Engineering
4
Public Hearing
Water Rates
Agenda Item G - 1
December 19, 2012
JO Water Rate Setting
• July 2010 Council Adopted 5 -Year Schedule of
Rate Adjustments
• ENR Index Established (No More CPI)
• Proposition 218 Procedure Affirmed Schedule
• Financial Model Used to Analyze Rate Changes
Recommendation
• January 2013 Increase — 2.5%
• Proposition 218 Anticipated Increase - 3.5%
• ENR 2012 Index Change — 2.62%
1 1111
- -,hot
Metered Water Rates
T
• Fixed Monthly Service Charge (3/4 inch) $23.78
• Metered charges:
— Tier 1 (Up to 7,480 gals/month) $0.0012/gal
—Tier 2 (7,480-37,400 gals/month) $0.0018/gal
— Tier 3 (>37,400 gals/month) $0.0024/gal
Questions
Public
Hearing
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
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT
INDEX FOR USAGE-BASEDAND FLAT WATER RATES
PUBLISH DATE: WEDNESDAY, NOVEMBER 28,2012
TEAR SHEETS WANTED: One (1) please
SENDAFFIDAVITAND BILLTO: RANDI JOHL, CITY CLERK
LNS ACCT. #0510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: MONDAY, NOVEMBER 26,2012
ORDERED BY: RANDI JOHL
CITY CLERK
NIFER . R BIS N. CMC
SSISTAN CITY CLERK
formAadvins.doc
MARIA BECERRA
ADMINISTRATIVE CLERK
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR
USAGE -BASED AND FLAT WATER 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 Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
declare under penalty of perjury that the foregoing is true and correct.
Executed on November26, 2012, at Lodi, California.
i
SET we] jTJ
MARIA BECERRA
W-29MWE Z I 100A I FOR 4:4 0,50 =
N:\Administration\CLERK\Fonns\DECPOSTPW.DOC
ORDERED BY:
RANDIJOHL
CITY CLERK
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! JohlEXHIHBil City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
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 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.
Byr of the Lodi City Council:
Ra�'b
City Clerk
Dated: November 21, 2012
Approved as to form:
D. Stephen Schwabauer
City Attorney
JACITYCLRMFORNIMPH NOTICE publication WaterRates.doc 11/20/12
Exhibit A
City of Lodi --Water Utility
Lourrent ana vroposea 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