HomeMy WebLinkAboutAgenda Report - May 7, 2014 G-01 PHAGENDA ITEM
JQ CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Public Hearing to Consider Adopting Resolution Setting Future Water, Wastewater
and Solid Waste Rate Schedules Pursuant to Proposition 218 for Residential,
Commercial and Industrial Customers
MEETING DATE: May 7, 2014
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Public hearing to consider adopting resolution setting future water,
wastewater and solid waste rate schedules pursuant to
Proposition 218 for residential, commercial, and industrial customers.
BACKGROUND INFORMATION: Rate schedules and rates analysis information were supplied to the
City Council at the October 15, 2013 Shirtsleeve meeting prior to
mailing Proposition 218 protest hearing notices and preliminary to a
public hearing to consider adopting the various rate schedules for the period from May 8, 2014 through
December 31, 2018. A second set of Proposition 218 protest notices (English and Spanish translations)
were mailed to approximately 50,000 addresses pursuant to City Council direction on February 19, 2014.
The various rate schedules set maximum limits on the various rates for the next five years, and each year
the City Council will be requested to approve the actual rates to be implemented. At the public hearing,
the City Council will be asked to receive public comment and adopt a resolution setting future
adjustments to water, wastewater and solid waste rates with limits for the period May 8, 2014 through
December 31, 2018; approving property owner meter charge schedule; and approving vacant residential
water and wastewater rates.
1. Property Owner Meter Charge Schedule At the March 26, 2012 City Council meeting, various
alternative property owner meter charge schedules were presented to the City Council. Prior
policy direction from the City Council set the charge for a single-family residential %-inch water
meter at $300. As the Water Meter Program moves into the multi -family and non-residential
properties, larger meters will be required and a meter charge schedule based upon meter size
needs to be established. Presented in Exhibit A is the recommended meter charge schedule,
along with previously -presented alternatives. The recommended charge schedule is based upon
the actual purchase price for the meter assembly (meter, register, and radio transmitter) plus
55 percent, which is identical to the 3/ -inch residential meter charge basis. The 55 percent covers
a portion of the cost of the meter box, miscellaneous piping, and installation. The capacity -based
charge schedule sets the meter cost according to the hydraulic capacity of the meter. The
installed cost is based upon contractor bid prices from construction for phases 1 through 3. The
Lodi charge schedule is taken from the City's published Fee and Service Charge Schedule.
Comparative charges from the City of Santa Clara are listed, and they are fairly consistent with
the recommended schedule, particularly considering most of the meters remaining to be installed
are 3/ to 1 inch in size. An additional column showing "no charge" is provided upon the request of
the mobile home park owners. All options presented in Exhibit A have been included in the
Proposition 218 notice and the City Council will be asked to select and approve a single option at
the public hearing.
K UMUTILITY RATES\W WW\2014 W -WW Rate
16.00C
Public Hearing to Consider Adopting Resolution Setting Future Water, Wastewater and Solid Waste Rate
Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers
May 7, 2014
Page 2
2. Vacant Residential Unit Water and Wastewater Rate Staff recommends the vacant residential
unit water and wastewater utility charge for customers without a metered service be equal to the
monthly base charge for metered customers having the same size of meter in their future service.
There would not be a specific vacant unit charge for the following customer classes as explained.
• Vacant single family detached with meter — customers would pay the monthly base rate
and presumably there would be no usage and, therefore, no usage charge.
• Vacant single family attached (duplex, triplex, fourplex — master meter) — property owners
would pay the monthly base rate and usage charges for the occupied units.
• Vacant single family attached (duplex, triplex, fourplex — individual meter) — customers
would pay the monthly base rate and presumably there would be no usage and, therefore,
no usage charge.
• Vacant apartment/condominium (master meter) — property owners would pay the monthly
base rate and usage charges for the occupied units.
• Vacant apartment/condominium (individual meter) — property owners would pay the
monthly base rate and presumably there would be no usage and, therefore, no usage
charge.
• Vacant mobile home (master meter) — property owners would pay the monthly base rate
and usage charges for the occupied units.
3. Water and Wastewater Rate Update In 2009, the City Council approved a five-year rate program
for the wastewater utility and in 2010 for the water utility. Each separate action by the Council
complied with the Proposition 218 requirements pertaining to such actions. The last pre -approved
rate adjustment under that program was for the water utility, and a 2.5 percent increase effective
February 15, 2014, below the 3.3 percent ENR index increase, was approved at a public hearing
held on December 18, 2013. A summary of the programmed rate adjustments and the
implemented rate adjustments for the past five years is provided in the table in Exhibit B. The
purpose of this table is to demonstrate past rate increases have frequently been below the
approved adjustments.
In preparation of the new five-year program, staff engaged the services of The Reed Group to
analyze the financial models and current rate structure within both utilities. The final report, Water
and Wastewater Rate Update Study, is provided in Exhibit C.
Staff is recommending a new five-year rate adjustment program for water, wastewater and solid
waste that will be subject to the Proposition 218 process. As in the past, rate adjustment
forecasts are based upon the financial models for each utility. The water and wastewater
financial models are provided in Exhibits D and E, respectively. For both the water and
wastewater utilities, the programmed adjustments are capped at three percent per year.
Important elements of the financial models are presented below.
Water Financial Model
1. Financial assumptions presented on the final page were checked and reconfirmed against
actual numbers.
2. Annual adjustments are capped at three percent and are indexed by the Engineering
News Record 20 -Cities Average Index.
3. Capital expenditures continue for the next four years of the Water Meter Program and
include installation of meters at multi -family and non-residential customer locations.
4. Debt service payments for the water treatment facilities are approximately $2.3 million per
year.
5. New development revenue toward payment of the water plant debt service is assumed
minimal to retain the utility's high bond rating.
K:\WP\UTILITY RATES\W_WW\2014 W -WW Rate Increase\CCPH_WaterWastewaterSolidWasteRates218.doc 4/23/2014
Public Hearing to Consider Adopting Resolution Setting Future Water, Wastewater and Solid Waste Rate
Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers
May 7, 2014
Page 3
6. Maintenance is scheduled for all wells in the system, amounting to approximately
$1.2 million.
7. Residual bond proceeds from the water treatment facilities financing, amounting to
approximately $2.3 million, are now shown in the financial model and will be used to pay
debt service in a future year.
8. Net available capital at the end of Fiscal Year 2018/19 could be used to pay off a portion
of the water treatment facilities debt at a considerable interest savings to our customers.
Wastewater Financial Model
1. Financial assumptions presented on the final page were checked and reconfirmed against
actual numbers.
2. Annual adjustments are capped at three percent and are indexed by the Engineering
News Record 20 -Cities Average Index.
3. Wastewater main rehabilitation continues at an investment rate of approximately
$2.2 million every other year.
4. The 2003 Certificates of Participation debt service is paid off in the first year, amounting to
approximately $3.2 million.
5. Debt service payments for the improvements at White Slough are approximately
$3.5 million per year.
6. New development revenue toward payment of the wastewater plant debt service is
assumed minimal to retain the utility's high bond rating.
7. Capital expenditures are planned, amounting to approximately $11.4 million, to improve
the irrigation conveyance and pumping facilities and to expand the secondary/industrial
storage at White Slough in the latter two years of the model.
8. Net available capital at the end of Fiscal Year 2018/19 could be used to pay off a portion
of the wastewater treatment facilities debt at a considerable interest savings to our
customers.
At the January 6, 2010 City Council meeting to consider setting usage -based rates for water and
wastewater, the following information was provided. "The City has an existing usage -based rate
structure for non-residential customers, and it is recommended that rate structure be maintained
for those non-residential accounts for the time being. This structure includes a monthly base
charge referenced to the meter size and a commodity charge of $0.537 per CCF as presented in
Exhibit C. It needs to be noted that the non-residential commodity charge is approximately
one-half of the weighted average residential commodity charge ($.537 versus $1.11 per CCF) and
that future work will need to be done to amend the non-residential rate structure to make it more
comparable to the residential commodity charge rate. Both the base charge and commodity
charge are likely to be increased."
The recommendations within the rate study provided in Exhibit C present a transition plan to
implement the abovementioned structural changes to the rates. In addition, the rate study
addresses the following issues concerning the City's water and wastewater utilities and user
rates.
A. Estimated annual water and wastewater rate revenue requirements for the next five years
B. Current flat and usage -based water and wastewater rate structures
C. Water and wastewater customer account, water usage, and wastewater flow
characteristics and influence on rate setting
D. Cost of service and rate design issues related to development of new usage -based water
and wastewater rate structures
E. Recommendations for new water and wastewater rate schedules over the next five years
K:\WP\UTILITY RATES\W WW\2014 W -WW Rate Increase\CCPH_WaterWastewaterSolidWasteRates218.doc 4/23/2014
Public Hearing to Consider Adopting Resolution Setting Future Water, Wastewater and Solid Waste Rate
Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers
May 7, 2014
Page 4
F. Affects of the proposed new water and wastewater rates on various residential and
non-residential customers
G. Transition plans to usage -based water and wastewater rates for each customer
classification
A summary of each of the above issues is provided in Section I of the rate study. More detailed
information and analysis is provided in Sections II and III. A summary of the programmed rates
for water and wastewater with the three percent adjustment and the structural changes are
presented in Exhibit F and will be included in the Proposition 218 notice.
4. Solid Waste Rates The existing agreement with Waste Management for Solid Waste Collection,
Recycling and Green Waste Collection and Processing Services in the City of Lodi (Agreement)
was adopted in 2008 and extends until December 31, 2023. An amendment to the Agreement
was approved in 2010 that gives the Contractor the unilateral option to extend the Agreement until
December 31, 2030. Section 7 Rates, paragraphs b. and c. of the Agreement establish
provisions for annual adjustment to the rates that are repeated below.
b. On April 1, 2009, and on each anniversary thereof during the term of this Agreement, the rates
shall be adjusted in a percentage amount equal to eighty percent (80%) of the annual change in
the Consumer Price Index for all Urban Consumers for San Francisco -Oakland -San Jose,
California area (CPI), All Items (1982 — 84 = 100) published by the Bureau of Labor Statistics (the
Index) for the twelve (12) month period ending December 31 of the preceding calendar year.
c. In January of each year, Contractor shall send to City a revised rate schedule reflecting the
new rates, as adjusted by the Index as provided in Section 7.b. City Council will act on rate
adjustments to be effective on April 1 of that year.
Staff recommends Council approve an annual rate adjustment that, at Waste Management's option,
would be either (a) 80 percent of the annual change in the CPI, plus an adjustment for extraordinary
increases in landfill fees, fuel and energy costs and changes in law up to 100 percent of the annual
change in the CPI, or (b) 100 percent of the annual change in the CPI without those other
adjustments but with a certification that Waste Management's costs had increased by more than
100 percent of the change in the CPI. Any increase greater than 100 percent of the CPI would
require a separate Proposition 218 procedure and is subject to City Council approval. This change
would simplify the rate adjustment process by generally making any changes in fuel, landfill and
energy costs inclusive in the rate adjustment.
In addition, a new category of solid waste rates is added titled, "Commercial Compactor Rates" that
apply to the smaller commercial waste compactors like those existing at Lodi Cinema 12 and in the
City parking lot adjacent to the Woolworth Building. This rate schedule is provided in Exhibit G.
FISCAL IMPACT: Increased revenues are required to keep up with cost of service increases
and new mandated costs.
FUNDING AVAILABLE: Not applicable.
r��
,p� F. Wally Sandelin
Public Works Director
FWS/pmf
Attachments
KAWP\UTILITY RATES\W WW\2014 W -WW Rate Increase\CCPH WaterWastewaterSolidWasteRates218.doc 4/23/2014
Exhibit A
Meter Charge Alternatives
Meter
Size
Purchase
Price
Recommended
Price
Based
Cost x 1.55
Capacity
Factor
Capacity
Based
Installed
Cost
(Contract
Prices
Lodi Fee
Schedule
Santa Clara
Fee
Schedule
No
Charge
3/4
$194
$300
1
$300
$940
$400
$370
$0
1
$226
$350
1.67
$500
$1,420
$480
$365
$0
1 'h
$506
$780
3.33
$1,000
$3,810
$745
$1,565
$0
2
$624
$970
5.33
$1,600
$5,720
$930
$1,730
$0
3
$1,279
$1,980
10
$3,000
$5,950
N/A
$2,065
$0
4
$2,304
$3,570
16.67
$5,000
N/A
N/A
$4,130
$0
6
$4,362
$6,760
33.33
$10,000
N/A
N/A
$6,750
$0
8
$7,432
$11,520
53.33
$16,000
N/A
N/A
$10,670
$0
KAWRUTILITY RATES\W WW\CShirtsleeve101513 ExA.doc
Exhibit B
Programmed and Implemented Rate Adjustments
Water
Year
Programmed
Implemented
2009
3.10M
0
2010
0.73M
0
2011
5.98 (2)
2
2012
2.53 (3)
2.2
2013
2.50 (3)
2.5
2014
3.30 (3)
2.5
(1) Consumer Price Index change
(2) Consumer Price Index change (December 2008 through December 2010)
(3) Engineering News Record Index change
K:\WP\UTILITY RATES\W_WW\2014 W -WW Rate Increase\Exhibit B.xlsx
CITY OF LODI
Water and Wastewater Rate Update Study
Final Report
October 21, 2013
THE REED GROUP, INC.
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Table of Contents
SECTIONI. SUMMARY.............................................................................................1
Introduction.........................................................................
Revenue Needs of the Water and Wastewater Utilities
Proposed Water Rates.........................................................
Proposed Wastewater Rates ..............................................
Annual Adjustments to Water and Wastewater Rates..
Affect of Proposed Rates on Customer Bills ...................
....................................................1
....................................................1
....................................................2
....................................................4
....................................................5
....................................................8
SECTION II. WATER RATES....................................................................................11
CurrentWater Rates................................................................................................................11
Customer Base and Water Usage Data.................................................................................12
Annual Water Rate Revenue Requirement..........................................................................13
Cost of Service Analysis and Rate Design............................................................................14
Proposed Water Rate Schedules............................................................................................18
Meter Installation and Transition to Usage -Based Billing.................................................19
SECTION III: WASTEWATER RATES.....................................................................21
Current Wastewater Rates................................................................
Customer Base and Wastewater Flow Estimates ..........................
Annual Wastewater Rate Revenue Requirement ..........................
Cost of Service Analysis and Rate Design ......................................
Proposed Wastewater Rate Schedules ............................................
Meter Installation and Transition to Usage -Based Billing ...........
THE REED GROUP, INC.
...................................21
...................................22
...................................23
...................................24
...................................28
...................................29
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
SECTION I. SUMMARY
INTRODUCTION
The City of Lodi continues to install water meters on unmetered service connections of
single family, multi -family, and non-residential customers. The City expects to complete
the meter retrofit program in 2018. At the beginning of each year, the City transitions
batches of customers to usage -based water rates using data collected from water meters,
and the City is also beginning to transition customers to usage -based wastewater rates as
well.
In 2008, the City retained The Reed Group, Inc. to assist in developing financial plans
and utility rates for the City's water and wastewater utilities. Various analyses have been
performed since that time to help guide the City in dealing with a variety of water and
wastewater rate and financial issues, including the transition to usage -based billing. The
purpose of this report is to recommend water and wastewater rates that will meet each
utility's financial needs and continue the transition towards usage -based billing for all
customers.
This report addresses the following issues concerning the City's water and wastewater
utilities and user rates:
❖ Estimated annual water and wastewater rate revenue requirements for the next five
years
❖ Current flat and usage -based water and wastewater rate structures, and the need to
continue to develop new usage -based rate structures
❖ Water and wastewater customer account, water usage, and wastewater flow
characteristics and influence on rate setting
❖ Cost of service and rate design issues related to development of new usage -based
water and wastewater rate structures
❖ Recommendations for new water and wastewater rate schedules, as well as
adjustments in the level of the rates during the next five years
❖ Affect of the proposed new water and wastewater rates on various residential and
non-residential customers
❖ Summary of plans to continue the transition to usage -based water and wastewater
rates for each customer classification
❖ Plans and requirements for adopting new water and wastewater rates.
REVENUE NEEDS OF THE WATER AND WASTEWATER UTILITIES
Several years ago, The Reed Group, Inc. assisted the City by developing multi-year
financial plan models for the water and wastewater utilities. These models enabled the
City to evaluate the financial implications of the meter retrofit program, the construction
and financing of the new surface water treatment plant, and other capital improvements of
both utilities, as well as ongoing operation and maintenance costs, debt service obligations,
THE REED GROUP, INC. PAGE 1
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
and other factors affecting the financial condition and needs of the utilities. Since that
time, City staff has annually updated the financial plan models. The financial plan models
have enabled the City to make near-term financial and rate decisions with a long-term
planning horizon in mind, and this has led to the moderation and stabilization of annual
rate increases for both utilities.
In recent years, annual water rate increases have been less than 3 percent, and
wastewater rate increases have declined from double-digit levels down to 2.5 percent.
Current financial plan models estimate annual water and wastewater rate increases can be
limited to 3 percent per year through FY 19-20.
Proposed water and wastewater rate schedules presented in this report reflect an
overall 2.5 percent increase in the level of water rate revenue in the upcoming year
(effective in January 2014) and no more than 3 percent in the level of the wastewater rate
revenue (effective in July 2014). Beyond that, it is recommended that the City re -adopt
provisions to annually adjust water and wastewater rate increases by changes in the
Engineering News Record's 20 -Cities Construction Cost Index (ENR) for up to five years,
subject to a 3 percent cap. These annual rate adjustments would also be subject to annual
review by staff to confirm need and concurrence by the City Council.
PROPOSED WATER RATES
Proposed flat (unmetered) water rates are presented in Exhibit I-1, and proposed
usage -based (metered) water rates are presented in Exhibit I-2. Both of these rate
schedules reflect a 2.5 percent overall rate increase in January 2014 (based on previously
approved indexing using the ENR), and 3.0 percent increases each January from 2015
through 2019 (reflecting the maximum allowed under the proposed indexing criteria). As
the City will be phasing out the flat water rates as the meter retrofit program winds down,
no changes to the structure of the flat rates are proposed.
Proposed usage -based water rates include a gradual, three-year transition in the
structure. At present, the volumetric water rate for multi -family and non-residential
accounts is equal to the first tier rate for single family customers. Under the proposed rates
the uniform multi -family and non-residential rate will equal the weighted average across
the single family tier structure, thereby bringing better balance across the various customer
classes. In addition, monthly service charges should be adjusted to better reflect the
capacity relationship across meter sizes, and thereby improve equity between large and
small customers. Both of these changes are intended to better align the water rates with
cost of service principles, as required by Proposition 218.
Exhibit I-2 includes the three years of phased rate structure changes in the rate
schedules for 2014, 2015, and 2016. The 2014 schedule reflects the 2.5 percent overall
annual rate revenue increase relative to current rates (with some rate components
increasing and others decreasing each year), and the 2015 and 2016 schedules reflect the
maximum indexing of 3.0 percent in each of those years. These transitional rate structures
would be subject to downward adjustments in both 2015 and 2016 if the City Council
determines that smaller increases are needed in those years.
Details of water rate recommendations are presented in Section II of this report.
THE REED GROUP, INC. PAGE 2
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
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CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
PROPOSED WASTEWATER RATES
Proposed flat (unmetered) wastewater rates are presented in Exhibit I-3, and proposed
usage -based (metered) wastewater rates are presented in Exhibit I-4. Both of these rate
schedules reflect 3.0 percent increases each July from 2014 through 2018 (reflecting the
maximum allowed under the proposed indexing criteria). Similar to flat water rates, no
changes to the structure of flat wastewater rates are proposed, as they will be phased out in
upcoming years.
In 2010, the City developed usage -based wastewater rates for single family customers.
In July 2012, the City transitioned about 2,940 single family customers to the usage -based
wastewater rates, expects to transition an additional 3,700 in July 2014, and will continue
each year with more. However, usage -based wastewater rates for other customer classes
are not currently available. The usage -based wastewater rates proposed herein include
fixed monthly service charges and volumetric rates for all customer classes. While the rate
schedule includes usage -based rates for non-residential uses, the City plans to focus on
transitioning single family and multi -family residential customer to usage -based rates, and
then transition non-residential customers. Rate structure transition issues are discussed in
greater in Section III of this report. Additional refinements to the rate structure will be
required as the City gains data and experience with the usage -based rates, as well as
categorizes non-residential customers into appropriate strength classifications.
Details of wastewater rate recommendations are presented in Section III of this report.
ANNUAL ADJUSTMENTS TO WATER AND WASTEWATER RATES
Government Code Section 53756 authorizes the City to adopt a mechanism for
adjusting water and wastewater rates to offset the affects of inflation for up to five years.
Consistent with past practices, it is recommended that, in approving the proposed rates,
the City also approve annual adjustments to water rates beginning in January 2015 and to
wastewater rates beginning in July 2014 by the annual change in the Engineering News
Record's 20 -Cities Construction Cost Index (ENR), subject to a 3 percent annual cap. These
annual rate adjustments would also be subject to annual review by staff to confirm need
and concurrence by the City Council. In accordance with Section 53756, customers should
be informed of the changes in the rate schedules at least 30 days prior to their
implementation. This can be achieved through a bill insert, or other means.
Water and wastewater rate schedules presented in Exhibits 1-1 through I-4 reflect the
maximum 3.0 percent potential adjustment to the rates each year (January 2015 through
January 2019 for water rates and July 2014 through July 2018 for wastewater). These
schedules, therefore, reflect the "ceiling' for the rates at any time during this five-year
period. Actual annual rate adjustments would be based on the actual change in the ENR
index (subject to a 3.0 percent cap), financial need, and concurrence by the City Council.
As the City continues to transition customers from flat water and wastewater rates to
usage -based rates there is some uncertainty as to the affect it may have on revenues.
Therefore, it is important for the City to continue to monitor water usage characteristics
and rate revenues for both utilities on an annual basis.
THE REED GROUP, INC. PAGE 5
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
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CITY OF LODI
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THE REED GROUP, INC. PAGE 7
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
AFFECT OF PROPOSED RATES ON CUSTOMER BILLS
Flat water rates are proposed to increase by 2.5 percent in January 2014 and flat
wastewater rates are proposed be adjusted by no more than 3 percent in July 2014 to meet
anticipated revenue needs of the utilities. No structural changes are proposed for flat rates.
Customers subject to flat rates will therefore see a 2.5 percent change in their monthly
water bills, and no more than a 3 percent change in their monthly wastewater bills.
Rate structure changes are proposed for usage -based water rates, which will result in
smaller or larger changes in bill amounts for affected customers. In general, single family
residential customers will benefit from the change, and non-residential customers will, in
most but not all cases, see bill increases in excess of 2.5 percent. The proposed rate
structure changes, as described in Section II of this report, are intended to improve the
equity between the customer classes in the charges for water service.
Multi -family customers, including mobile homes parks, will soon begin to be
transitioned to usage -based rates. While usage -based billing may result in the City shifting
billing from tenants to property owners, the total charges for water service within most
apartment complexes and mobile home parks, as well as duplexes, triplexes, and
fourplexes, are likely to be significantly lower if billed to property owners with usage -
based rates compared with cumulative flat rate billing to the tenants.
With the exception of the transitioning single family residential customers from flat
wastewater rates to usage -based wastewater rates, other wastewater customers will
continue to be billed on flat rates until at least July 2015. Usage -based wastewater rates are
based on winter water usage for each account, and non-residential customers will be
assigned to low, medium, or high strength categories, depending on the type of business.
When the transition does occur, multi -family residential customers will likely benefit from
usage -based rates. Additional analysis is required to assess the potential implications of
usage -based rates for non-residential customers, and further refinements to wastewater
rates will be required in the years ahead as more data and analyses become available.
Exhibit I-5 summarizes the affect of proposed water rates (effective January 2014) and
proposed wastewater rates (effective July 2014) on monthly bills for a sampling of
residential customers. Both flat rates and usage -based rate examples are presented, as well
as changes in combined water and wastewater bills.
Exhibit I-6 summarizes the affect of proposed water rates (effective January 2014) and
proposed wastewater rates (effective July 2014) on average monthly bills for a sampling of
non-residential customers. In all cases, non-residential customers shown are subject to
usage -based water rates and flat wastewater rates during this period.
Bill water amounts under proposed rates in Exhibits I-5 and I-6 reflect both the 2.5
percent overall rate increase, as well as the first step in the rate restructuring for usage
based water rates. Additional details on the water and wastewater rates and related
analyses are presented in Sections II and III, respectively, of this report.
THE REED GROUP, INC. PAGE 8
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit I-5
City of Lodi
Water Bills for Sample of Residential Customers
Wastewater Bills for Sample of Residential Customers
Monthly Wastewater Bill
Monthly
Water Bill
Change
Winter
Current
Water
Proposed
Current
Proposed
Wtr. Use
Use
Rates
Rates
(CCF)
(Jul. 2013)
(CCF)
(Jan.2013)
$s
(Jan. 2014)
Single Family Residential
$s
%
Single Family Residential
$
1.93
2.7%
Flat Rate - 3 Bdrm Home
$
Flat Rate - 2 Bdrm Home
n/a
$
Flat Rate - 2 Bdrm Home
n/a
$
35.91
$
36.81
$
0.90
2.5%
Flat Rate - 3 Bdrm Home
n/a
$
43.04
$
44.12
$
1.08
2.5%
Mtr'd Rate - Low Usage
9
$
32.06
$
31.72
$
(0.34)
-1.1%
Mtr'd Rate - Median Usage
16
$
41.26
$
40.76
$
(0.50)
-1.2%
Mtr'd Rate - High Usage
32
$
63.34
$
62.36
$
(0.98)
-1.5%
Muti-Family Residential (1)
$
127.65
$
(2.81)
-2.2%
Flat Rate - 2 Bdrm Apartment
n/a
$
Flat Rate - 2 Bdrm Apartment
n/a
$
30.79
$
31.56
$
0.77
2.5%
Duplex w/ 3/4" Mtr.
36
$
61.58
$
59.26
$
(2.32)
-3.8%
Fourplex w/ 1" Wtr. Mtr.
60
$
123.16
$
97.38
$
(25.78)
-20.9%
12 Unit Apartment w/ 1 1/2" Mtr.
150
$
369.48
$
212.08
$
(157.40)
-42.6%
80 Unit Apartment w/ 4" Mtr.
720
$
2,463.20
$
913.14
$ (1,550.06)
-62.9%
40 Unit MH Park w/ 2" Mtr.
250
$
1,026.80
$
334.29
$
(692.51)
-67.4%
Wastewater Bills for Sample of Residential Customers
Combined Water and Wastewater Bills for Sample of Residential Customers
Monthly Wastewater Bill
Change
Winter
Current
Current
Proposed
Proposed
Wtr. Use
Rates
Rates
Single Family Residential
(CCF)
(Jul. 2013)
(Jul. 2014)
$s
Flat Rate - 2 Bdrm Home
Single Family Residential
70.35
$
72.28
$
1.93
2.7%
Flat Rate - 3 Bdrm Home
$
Flat Rate - 2 Bdrm Home
n/a
$
34.44
$
35.47
$
1.03
3.0%
Flat Rate - 3 Bdrm Home
n/a
$
43.05
$
44.34
$
1.29
3.0%
Mtr'd Rate - Low Usage
6
$
39.60
$
40.79
$
1.19
3.0%
Mtr'd Rate - Median Usage
9
$
47.64
$
49.07
$
1.43
3.0%
Mtr'd Rate - High Usage
12
$
55.68
$
57.35
$
1.67
3.0%
Muti-Family Residential (1)
Duplex w/ 3/4" Mtr.
$
130.46
$
127.65
$
(2.81)
-2.2%
Flat Rate - 2 Bdrm Apartment
n/a
$
34.44
$
35.47
$
1.03
3.0%
Duplex w/ 3/4" Mtr.
16
$
68.88
$
68.39
$
(0.49)
-0.7%
Fourplex w/ 1" Wtr. Mtr.
28
$
137.76
$
116.11
$
(21.65)
-15.7%
12 Unit Apartment w/ 1 1/2" Mtr.
72
$
413.28
$
273.75
$
(139.53)
-33.8%
80 Unit Apartment w/ 4" Mtr.
480
$
2,755.20
$
1,690.68
$ (1,064.52)
-38.6%
40 Unit MH Park w/ 2" Mtr.
180
$
1,033.20
$
615.43
$
(417.77)
-40.4%
Combined Water and Wastewater Bills for Sample of Residential Customers
Notes:
(1) Current bill amounts for multi -family examples are all based on flat rates, and assume
two bedroom dwelling units. Proposed bill amounts are based on metered rates, except
where noted.
THE REED GROUP, INC. PAGE 9
Monthly Wtr/WW Bill
Change
Current
Proposed
Rates
Rates
$s
Single Family Residential
Flat Rate - 2 Bdrm Home
$
70.35
$
72.28
$
1.93
2.7%
Flat Rate - 3 Bdrm Home
$
86.09
$
88.46
$
2.37
2.8%
Mtr'd Rate - Low Usage
$
71.66
$
72.51
$
0.85
1.2%
Mtr'd Rate - Median Usage
$
88.90
$
89.83
$
0.93
1.0%
Mtr'd Rate - High Usage
$
119.02
$
119.71
$
0.69
0.6%
Muti-Family Residential (1)
Flat Rate - 2 Bdrm Apartment
$
65.23
$
67.03
$
1.80
2.8%
Duplex w/ 3/4" Mtr.
$
130.46
$
127.65
$
(2.81)
-2.2%
Fourplex w/ 1" Wtr. Mtr.
$
260.92
$
213.49
$
(47.43)
-18.2%
12 Unit Apartment w/ 1 1/2" Mtr.
$
782.76
$
485.83
$
(296.93)
-37.9%
80 Unit Apartment w/ 4" Mtr.
$
5,218.40
$
2,603.82
$ (2,614.58)
-50.1%
40 Unit MH Park w/ 2" Mtr.
$
2,060.00
$
949.72
$ (1,110.28)
-53.9%
Notes:
(1) Current bill amounts for multi -family examples are all based on flat rates, and assume
two bedroom dwelling units. Proposed bill amounts are based on metered rates, except
where noted.
THE REED GROUP, INC. PAGE 9
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit I-6
City of Lodi
Water Bills for Sample of Non -Residential Customers
Wastewater Bills for Sample of Non -Residential Customers
Monthly Wtr/WW Bill
Monthly Water Bill
Change
Change
Water
Current
Proposed
Rates
Use
Rates
Rates
$s
Rates
Retail Store
$
190.21
$
(CCF)
(Jan. 2013)
(Jan. 2014)
(Jul. 2014)
$s
$s
Retail Store (w/ 1" mtr.)
48
$
82.76
$
85.38
$
2.62
3.2%
Small Motel (w/ 1" mtr.)
120
$
149.00
$
157.38
$
8.38
5.6%
Restaurant (w/ 1 1/2" mtr.)
160
$
207.59
$
222.25
$
14.65
7.1%
Small Manufacturer (w/ 2" mtr.)
169
$
230.75
$
253.29
$
22.54
9.8%
Grocery Store (w/ 2 mtrs.)
518
$
611.76
$
664.04
$
52.27
8.5%
Big Box Retail (w/ 2 mtrs.)
541
$
633.48
$
687.64
$
54.16
8.5%
Large Retail Store (w/ 2" mtr.)
739
$
815.16
$
931.89
$
116.73
14.3%
Large Office Bldg. (w/ 4" mtr)
704
$
783.11
$
897.06
$
113.94
14.6%
High School (w/ 3 mtrs.)
2,268
$
2,441.57
$
2,818.13
$
376.56
15.4%
Hospital (w/ 6 mtrs.)
2,963
$
3,505.27
$
4,067.37
$
562.10
16.0%
Indus. Food Processor (w/ 4 mtrs.)
6,025
$
5,973.20
$
6,659.34
$
686.14
11.5%
Indus. Food Processor (w/ 6 mtrs.)
8,565
$
8,376.22
$
9,156.93
$
780.71
9.3%
Wastewater Bills for Sample of Non -Residential Customers
Combined Water and Wastewater Bills for Sample of Non -Residential Customers
Monthly Wtr/WW Bill
Monthly Wastewater Bill
Change
Change
WW
Current
Proposed
Rates
Use
Rates
Rates
$s
Rates
Retail Store
$
190.21
$
(SSUs)
(Jul.
2013)
(Jul. 2014)
Small Motel
$s
%
Retail Store
3.12
$
107.45
$
110.67
$
3.21
3.0%
Small Motel
4.00
$
137.76
$
141.88
$
4.12
3.0%
Restaurant
14.00
$
482.16
$
496.58
$
14.42
3.0%
Small Manufacturer
22.85
$
786.95
$
810.49
$
23.54
3.0%
Grocery Store
25.00
$
861.00
$
886.75
$
25.75
3.0%
Big Box Retail
36.08
$
1,242.60
$
1,279.76
$
37.16
3.0%
Large Retail Store
13.98
$
481.47
$
495.87
$
14.40
3.0%
Large Office Building
92.63
$
3,190.18
$
3,285.59
$
95.41
3.0%
High School
133.93
$
4,612.55
$
4,750.50
$
137.95
3.0%
Hospital
48.56
$
1,672.41
$
1,722.42
$
50.02
3.0%
Industrial Food Processor
639.67
$
22,030.23
$
22,689.09
$
658.86
3.0%
Industrial Food Processor
1,258.06
$
43,327.59
$
44,623.39
$
1,295.80
3.0%
Combined Water and Wastewater Bills for Sample of Non -Residential Customers
THE REED GROUP, INC. PAGE 10
Monthly Wtr/WW Bill
Change
Current
Proposed
Rates
Rates
$s
%
Retail Store
$
190.21
$
196.05
$
5.83
3.1%
Small Motel
$
286.76
$
299.26
$
12.50
4.4%
Restaurant
$
689.75
$
718.83
$
29.07
4.2%
Small Manufacturer
$
1,017.70
$
1,063.78
$
46.08
4.5%
Grocery Store
$
1,472.76
$
1,550.79
$
78.02
5.3%
Big Box Retail
$
1,876.07
$
1,967.39
$
91.32
4.9%
Large Retail Store
$
1,296.63
$
1,427.76
$
131.13
10.1%
Large Office Building
$
3,973.29
$
4,182.64
$
209.35
5.3%
High School
$
7,054.12
$
7,568.63
$
514.51
7.3%
Hospital
$
5,177.68
$
5,789.79
$
612.11
11.8%
Industrial Food Processor
$
28,003.44
$
29,348.44
$
1,345.00
4.8%
Industrial Food Processor
$
51,703.80
$
53,780.32
$
2,076.52
4.0%
THE REED GROUP, INC. PAGE 10
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
SECTION II. WATER RATES
This section of the report describes water rate recommendations for the City's water
utility. The City's multi-year financial plan was used to determine annual water rate
revenue requirements, and to develop the strategy for meeting current and future financial
obligations. The annual rate revenue requirement is the amount of revenue needed from
water rates to cover estimated operating, maintenance, debt service, and capital program
costs with consideration of other revenues and financial reserves.
Water rate recommendations are also intended to assist the City in the transition to a
fully metered water system and universal usage -based water rates. Rate structure changes
are intended to improve equity across customer classes by better reflecting the cost of
providing service.
CURRENT WATER RATES
The City's current water rates are summarized in Exhibit II -1. Water rates were last
adjusted in January 2013 with a 2.5 percent across-the-board increase based on changes in
the Engineering New Record's 20 -Cities Construction Cost Index (ENR). This index is used
by the City to annually adjust the level of water and wastewater rates.
Exhibit 1-1
City of Lodi
Current Monthly Water Rates
FLAT RATES
USAGE -BASED RATES
Single Family Residential
Single Family Residential
1 Bedroom
$
29.90
Monthly Service Charges
Usage Rates ($/CCF)
2 Bedroom
$
35.91
3/4" meter $ 23.78
Tier 1 (0-10 CCF)
$ 0.92
3 Bedroom
$
43.04
1" meter $ 38.60
Tier 2 (11-50 CCF)
$ 1.38
4 Bedroom
$
51.72
1 1/2" meter $ 75.42
Tier 3 (>50 CCF)
$ 1.82
5 Bedroom
$
62.03
2" meter $ 119.79
6 Bedroom
$
74.44
7 Bedroom
$
89.31
Multi -Family and Non -Residential
(1)
Multi -Family (1)
Monthly Service Charges
Usage Rates ($/CCF)
1 Bedroom
$
25.67
3/4" meter $ 23.78
All water usage
$ 0.92
2 Bedroom
$
30.79
1" meter $ 38.60
3 Bedroom
$
36.94
1 1/2" meter $ 60.24
4 Bedroom
$
44.32
2" meter $ 75.27
Mobile Homes
3" meter $ 105.38
Any Size
$
25.67
4" meter $ 135.51
Non -Residential
6" meter $ 195.68
Exist. unmetered
Varies
8" meter $ 255.91
10" meter $ 316.01
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
THE REED GROUP, INC. PAGE 11
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Residential flat rates are based on the number of bedrooms in each dwelling, and are
based on water usage estimates made prior to the availability of water usage data. All flat
rates will be phased out as the installation of water meters is completed. Water usage rates
include a fixed monthly service charge, based on size of the water meter, and volumetric
charges based on a customer's actual water usage. Single family customers are subject to a
three-tier rate structure, which includes a lower initial rate intended for non -discretionary
uses of water and higher rates for discretionary uses intended to provide an incentive to
conserve water. Multi -family and non-residential customers are subject to a uniform water
usage rate.
At present, tenants of multi -family apartments and mobile home parks are billed for
water and wastewater services. As water meters are installed for apartment complexes
and mobile home parks the billing for these services may be transferred from tenants to
property owners.
CUSTOMER BASE AND WATER USAGE DATA
The water utility's customer base is predominately comprised of single family and
multi -family residential customers, along with commercial, industrial, and municipal
customers. Some non-residential customers, including food-processing facilities, use very
large quantities of water. Because the City is not entirely metered total water usage must
be estimated. Exhibit II -2 summarizes customer account and water usage estimates
derived from the City's utility billing system for 2012. With residential accounts
expressed as the number of dwelling units, the water utility customer base is nearly 23,600
accounts and estimated annual water usage is about 16,233 acre-feet (AF). Single family
accounts represent 70 percent of the customers and 58 percent of the water usage. Multi-
family accounts represent 24 percent of the customers and 14 percent of the water usage.
Non-residential accounts comprise about 6 percent of the customer base, and also
represent about 27 percent of annual water usage. The City's largest water users include
several industrial customers (primarily food-processing), as well as the City of Lodi, and
the Lodi Unified School District.
By January 2014, more than one-half of the City's single family residential customers
will be on usage -based water rates, with two- to three -thousand single family customers
transitioning to usage -based rates each year. All single family customers are expected to
be transitioned to usage -based water rates by 2019. The installation of water meters for all
customers is expected to be completed by 2018. About 75 percent of non-residential
customers are metered and have been on usage -based water rates. The City plans to
transition mobile home parks to usage -based rate in 2014, the remaining non-residential
accounts by 2017, and multi -family accounts by 2020.
THE REED GROUP, INC. PAGE 12
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit II -2
City of Lodi
Summary of Water Utility Customer Accounts and Annual Water Usage (1)
Customer Accounts (2)
■ Single Family
■ Multi -Family
1,434 . Non -Residential
Est. Annual Water Usage (AF) (3)
■ Single Family
4,455 • Multi -Family
m Non -Residential
Notes:
(1) Derived from the City's utility billing system from data for 2012.
(2) Total customer accounts equals 23,596. Residential accounts expressed in dwelling units.
(3) Total estimated annual water usage equals 16,233 acre-feet (AF).
ANNUAL WATER REVENUE RATE REQUIREMENT
The City has updated its multi-year financial model with actual revenues and expenses
(pre -audit) for FY 12-13 and the approved budget for FY 13-14. Based on that model, the
City estimates an annual water rate increase of 2.5 percent in January 2014 followed by
annual water rate increases of no more than 3 percent per year thereafter. These rate
increases are believed to be sufficient to meet the utility's operating and maintenance costs,
debt service obligations, and capital program needs through FY 19-20.
The City adjusts its water rates in January of each year based on the annual change in
the ENR, subject to a 3.0 percent cap and concurrence by the City Council. Based on the
current ENR and staff's analysis of financial need, the rate analyses presented herein are
based on a 2.5 percent increase effective in January 2014. This is consistent with the City's
updated financial plan model.
The City anticipates approximately 2,350 additional single family residential customers
will be converted to usage -based rates in January 2014. With that shift, and an overall 2.5
percent rate increase, water rate revenues from flat and usage based customers is estimated
to be $12,931,000, as summarized below
Flat rate revenue $5,781,000
Usage -based rate revenue $7,150,000
Total 2014 water rate revenue $12,931,000
No changes are proposed to the City's flat water rate structure. Therefore, a 2.5 percent
rate increase will mean a 2.5 percent increase to all flat water rates. With a transition of
approximately 2,350 additional single family customers to water meters in January 2014
THE REED GROUP, INC. PAGE 13
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
the water utility will be billing nearly 8,400 customer accounts through usage -based water
rates. The annual water rate revenue requirement for the City's usage -based water rates
will be $7,150,000 for 2014, with this increased portion of the customer base on usage -based
rates. This is the revenue requirement used for the calculation of usage -based water rates.
COST OF SERVICE ANALYSIS AND RATE DESIGN
The annual water rate revenue requirement of $12,931,000 for 2014 has been split
between flat and usage -based rates based on the number of accounts and water use
characteristics of the customer base within each group. The cost of service analysis for
each group is separately presented below.
Flat Rate Cost of Service Analysis
As the City will be phasing out the system of flat water rates in the next few years, no
changes to the rate structure are proposed. The City's flat rates are based on the number of
bedrooms in each single family and multi -family dwelling unit. Non-residential flat rate
accounts have each been assigned a unique single family equivalency factor, based on
estimated usage characteristics, relative to single family homes.
Exhibit II -3 summarizes the distribution of the 2014 revenue requirement for flat rate
accounts of various customer types, and shows the calculation of the monthly flat water
rates. Monthly flat water rates are proposed to increase by 2.5 percent in January 2014.
Usage -Based Rate Cost of Service Analysis
A more detailed cost of service analysis was prepared for the City's usage -based water
rates. The analysis was based on the number and type of customers that will be subject to
these rates in 2014.
Once the 2014 usage -based revenue requirement of $7,150,000 was determined, the
next step in the rate setting process is to evaluate the cost of providing service. Water rate
calculations contained herein are intended to generate the level of revenue commensurate
with the revenue requirement for usage -based customers. The manner in which each
customer is responsible for the water utility's costs is the subject of the cost of service
analysis.
The water utility incurs certain types of costs associated with making water service
available to customers. Other costs are incurred as a direct result of customer water usage.
The cost of service analysis is intended to allocate the costs of providing water service to
customers in proportion to customers' water demands and service requirements. There are
many approaches to cost of service analysis; some are more complex than others. The
approach used herein is commensurate with the data available, the distinctions currently
made between various types of customers, and the requirement to fairly and to reasonably
reflect the differences in service provisions to different customers.
THE REED GROUP, INC. PAGE 14
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit II -3
City of Loda
2014 Flat Water Rate Cost of Service Analvsis and Rate Calculation
No. of Accts.
Customer Group or DUs (1)
Equivalency
Factor (2)
Single Family
Equivalents
(3)
% of
Total
Alloc. of
Revenue
R mt.
Monthly Flat
Water Rate
Single Family Residential
1 Bedroom
549
0.83
458
3.5%
$
201,900
$
30.65
2 Bedroom
3,908
1.00
3,908
29.9%
$
1,726,500
$
36.81
3 Bedroom
2,787
1.20
3,344
25.5%
$
1,476,000
$
44.12
4 Bedroom
288
1.44
415
3.2%
$
183,200
$
53.01
5 Bedroom
23
1.73
40
0.3%
$
17,500
$
63.58
6 Bedroom
1
2.07
2
0.0%
$
900
$
76.30
Multi -Family Residential
1 Bedroom
2,177
0.71
1,556
11.9%
$
687,300
$
26.31
2 Bedroom
3,311
0.86
2,839
21.7%
$
1,253,900
$
31.56
3 Bedroom
129
1.03
133
1.0%
$
58,600
$
37.86
4 Bedroom
2
1.23
2
0.0%
$
1,100
$
45.43
Non -Residential
Various
271
Varies
394
3.0%
$
174,100
Varies (4)
Totals
13,446
13,091
$
5,781,000
Notes:
(1) Estimate based on transition of about 2,350 additional single family accounts to usage -based billing.
(2) From existing flat water rate structure.
(3) Based on one single family equivalent equal to a 2 -bedroom home.
(4) All non-residential flat rates increase by 2.5 percent.
The cost allocation methodology used herein begins by assigning all costs to one of
three categories. The cost allocation process considers the level of detail available in the
City's financial structure, as well as professional judgment and experience. The three
categories include:
• Customer costs, such as meter reading, billing, and customer service, are fixed
costs that tend to vary as a function of the number of customer being served.
Customer costs are allocated to customers based on the number of accounts.
That is, every customer will pay an equal share of customer -related costs.
• Capacity costs are also fixed costs, however, these tend to vary in relation to the
capacity of the water system. Customers that place (or can place) a greater or
lesser burden on the capacity of the water system should bear greater or lesser
shares of these costs. The sizing of the water system is based on the potential
demand that each customer could place on the water system. Capacity costs are
allocated to customers based on the size (hydraulic capacity) of the water meter.
The hydraulic capacity reflects the potential demand that a customer could
place on the water system at any given time. A customer with a large meter
will be assigned a larger share of fixed capacity -related costs than one with a
small meter. Capacity costs include costs associated with the water system's
capacity including contributions to the capital program, debt service,
maintenance costs, etc.
THE REED GROUP, INC. PAGE 15
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
• Commodity costs are variable costs that vary with the amount of actual water
use. Water purchases, energy costs, and chemical costs are primary examples.
However, because certain fixed costs are reasonably assigned to customers on
the basis of usage (e.g., water treatment staff -related costs), some fixed costs are
frequently included in the commodity component. Recovering a portion of
fixed costs on the basis of actual water usage has the added benefit for
increasing the water conservation incentive reflected in the water rates.
The water conservation best management practice for water rates (BMP 1.4), as
promulgated by the California Urban Water Conservation Council (CUWCC) specifies that
at least 70 percent of water rate revenue be generated through water usage charges. While
the City is not subject to the CUWCC's requirements, such an approach also provides
customers with added ability to affect the amount of their water bill by managing water
usage. The allocation of costs, as well as the resulting rate calculations, reflects a balanced
approach to considering different rate -setting objectives. Based on a review of water
system financial information, the cost allocation resulted in a distribution of the costs to
customer, capacity, and commodity components of 5 percent, 40 percent, and 55 percent,
respectively.
Exhibit II -4 shows how the usage -based revenue requirement is allocated to cost
components, as well as the resulting determination of water rates. Usage -based water rates
include a fixed monthly service charge, to recover customer and capacity costs, and water
usage rates, to recover commodity costs.
The monthly service charges are calculated by allocating customer costs equally across
all customer accounts and by allocating capacity related costs in proportion to meter
capacity. As a result, monthly service charges increase with increasing meter sizes. While
the current monthly service charges also vary with meter size the variation across meter
sizes does not fully reflect the capacity relationship across meter sizes. With the correct
capacity factors applied monthly service charges for the smaller meter sizes decrease while
the charges for larger meters increase. The increase is greatest for the largest meter sizes
but is, nevertheless, consistent with cost of service principles and the capacity relationship.
The City's water rate structure includes a uniform water usage rate for multi -family
and non-residential customers. The uniform water rate is calculated simply by dividing
the commodity costs by the total water sales volume.
In 2009, the City implemented a three-tier water rate structure for single family
customers. The tier structure provides a lower cost for initial water usage, estimated to
reflect indoor water needs that tend to be non -discretionary, and higher costs for more
discretionary uses of water. It also serves as a water conservation incentive. The City
obtains its water supply from both groundwater and surface water purchased from the
Woodbridge Irrigation District. The first tier rate generally reflects the cost of groundwater
production (as well as other commodity costs recovered through the usage rates), and the
third tier rate generally reflects the cost of purchasing and treating surface water (as well as
other commodity costs recovered through the usage rates).
THE REED GROUP, INC. PAGE 16
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
THE REED GROUP, INC. PAGE 17
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THE REED GROUP, INC. PAGE 17
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
At present, the uniform rate for multi -family and non-residential accounts is equal to
the first tier rate for single family customers. Equity is improved between the single
family, multi -family, and non-residential usage rates with the proposed rates because the
weighted average rate across the three single family tiers equals the uniform rate
applicable to multi -family and non-residential accounts.
PROPOSED WATER RATE SCHEDULES
Current and proposed water rate schedules for both flat rates and usage -based rates are
presented in Exhibits II -5 and II -6, respectively. All rates reflect an overall 2.5 percent
revenue increase relative to the current water rates. However, due to the changes in the
usage -based rate structure the change in customer water bills will vary, and will be a
function of customer class, meter size, and monthly water usage, as previously presented
in the section Usage -Based Rate Cost of Service Analysis (above). Illustrative examples of
customer bill impacts are included in Exhibits I-5 and I-6, earlier in the report.
Exhibit II -5
City of Lodi
Current and Proaosed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments,
and condominiums.
THE REED GROUP, INC. PAGE 18
Current
Jan.2013
Proposed
Jan.2014
Rate Increase -->
2.5%
FLAT RATES
Single Family Residential
1 Bedroom
$
29.90
$
30.65
2 Bedroom
$
35.91
$
36.81
3 Bedroom
$
43.04
$
44.12
4 Bedroom
$
51.72
$
53.01
5 Bedroom
$
62.03
$
63.58
6 Bedroom
$
74.44
$
76.30
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
2 Bedroom
$
30.79
$
31.56
3 Bedroom
$
36.94
$
37.86
4 Bedroom
$
44.32
$
45.43
Mobile Homes
Any size
$
25.67
$
26.31
Non -Residential
Existing unmetered
Varies
+2.5%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments,
and condominiums.
THE REED GROUP, INC. PAGE 18
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit II -6
City of Lodi
Current and Pronosed Usaae-Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) This rate schedule is revenue neutral relative to the newly indexed January 2014 water rates.
(3) These rate schedules are revenue neutral relative to 2014, and would be subject to annual inflationary
adjustments based on changes in the ENR.
Three -Year Transition for Usage -Based Rates
The proposed modifications to the usage -based water rate structure include changes
that may impact some non-residential customers (those with large meters and/or high
water usage) more dramatically than other customers. This is due to both the increased
monthly service charges for larger meter sizes, as well as the necessary increase in the
uniform water rate to bring it up from the single family first tier rate to the weighted
average across all tiers. (At present, nearly all multi -family accounts still pay for water
service under flat rates; therefore they will not directly be affected by the changes in the
usage -based rate structure.)
To ease the potential affects of the proposed new water rate structure, it is
recommended that the usage -based rate structure be phased in over a three-year period.
The rate schedule presented in Exhibit II -6 illustrates the transition. The rate schedules for
THE REED GROUP, INC. PAGE 19
Revenue Neutral 3 -Year Restructuring
Current
New Indexing
Proposed
Proposed
Proposed
Jan.2013
Jan. 2014)
(Jan.2014)
(Jan.
2015
Jan.
2016
Rate Increase -->
2.5%
2
3
3
USAGE -BASED RATES
Monthly Service Charge
Single Family
3/4" meter
$
23.78
$
24.37
$
23.26
$
22.14
$
21.02
1" meter
$
38.60
$
39.57
$
37.38
$
35.20
$
33.02
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
67.60
$
62.74
2" meter
$
119.79
$
122.78
$
114.71
$
106.64
$
98.56
Multi -Family and Non -Residential (1)
3/4" meter
$
23.78
$
24.37
$
23.26
$
22.14
$
21.02
1" meter
$
38.60
$
39.57
$
37.38
$
35.20
$
33.02
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
62.41
$
62.74
2" meter
$
75.27
$
77.15
$
84.29
$
91.43
$
98.56
3" meter
$
105.38
$
108.01
$
132.74
$
157.46
$
182.18
4" meter
$
135.51
$
138.90
$
193.14
$
247.38
$
301.62
6" meter
$
195.68
$
200.57
$
333.69
$
466.82
$
599.94
8" meter
$
255.91
$
262.31
$
494.23
$
726.16
$
958.08
10" meter
$
316.01
$
323.91
$
674.61
$
1,025.32
$
1,376.02
Mobile Homes
Any Size
$
23.78
$
24.37
$
23.26
$
22.14
$
21.02
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.94
$
0.93
Tier 2 (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.29
$
1.23
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.65
$
1.54
Multi -Family and Non -Residential (1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.06
$
1.11
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) This rate schedule is revenue neutral relative to the newly indexed January 2014 water rates.
(3) These rate schedules are revenue neutral relative to 2014, and would be subject to annual inflationary
adjustments based on changes in the ENR.
Three -Year Transition for Usage -Based Rates
The proposed modifications to the usage -based water rate structure include changes
that may impact some non-residential customers (those with large meters and/or high
water usage) more dramatically than other customers. This is due to both the increased
monthly service charges for larger meter sizes, as well as the necessary increase in the
uniform water rate to bring it up from the single family first tier rate to the weighted
average across all tiers. (At present, nearly all multi -family accounts still pay for water
service under flat rates; therefore they will not directly be affected by the changes in the
usage -based rate structure.)
To ease the potential affects of the proposed new water rate structure, it is
recommended that the usage -based rate structure be phased in over a three-year period.
The rate schedule presented in Exhibit II -6 illustrates the transition. The rate schedules for
THE REED GROUP, INC. PAGE 19
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
all three years are revenue neutral to each other (and reflect an overall 2.5 percent revenue
increase over the current rates). Therefore, in both 2015 and 2016 the rate schedules will
need to be adjusted to incorporate the inflationary adjustments to the rates, based on
changes in the ENR.
The usage -based water rate schedule presented in Exhibit I-2 reflect the proposed rate
structure phased implementation, as well as reflecting the maximum potential rate
adjustment of 3.0 percent per year, based on ENR indexing criteria.
METER INSTALLATION AND TRANSITION TO USAGE -BASED BILLING
The City continues to install water meters on all unmetered water service connections.
Below is a summary of the status of the metering program and plans to transition
customers from flat water rates to usage -based water rates. Each January an additional
batch of customers is transitioned to usage -based rates.
• Single Family - More than 50 percent of single family homes now have water
meters with two- to three -thousand additional meters installed each year. The
transition to usage -based rates is expected to be completed by January 2019.
Mobile Home Parks - All mobile home parks have now been provided with
master water meters on the connections serving each park. The City plans to
convert all mobile home parks to usage -based water rates in the near future.
Multi -Family - The City is currently installing water meters for apartment and
condominium complexes, and plans to complete these installations by 2018. All
multi -family accounts (including duplexes, triplexes, and fourplexes) are
expected to transition to usage -based water rates in January 2020. Similar to
mobile home parks, at that time, billing may also shift from tenant to property
owner.
• Non -Residential - At present, about 75 percent of non-residential accounts have
water meters and are subject to usage -based water rates. Remaining unmetered
accounts will be metered in the next few years, and the City expects to
implement usage -based rates on these accounts by January 2017. Non-
residential accounts include commercial, industrial, institutional, and dedicated
irrigation account types.
The transition from flat rates to usage -based rates may affect the total amount of
customers' water bills. Monthly bills may be higher in the summer during the irrigation
season, and lower in winter months when water demand is lower. For single family
customers many will have a decrease in their annual water cost with the transition to
usage -based rates, while others will have an overall increase. Multi -family customers will
generally benefit from the transition to usage -based water rates. As noted previously non-
residential customers may have larger water bills with the proposed rates.
THE REED GROUP, INC. PAGE 20
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
SECTION III: WASTEWATER RATES
This section of the report describes wastewater rate recommendations for the City's
wastewater utility. The City's multi-year financial plan was used to determine annual
wastewater rate revenue requirements, and to develop the strategy for meeting current
and future financial obligations. The annual rate revenue requirement is the amount of
revenue needed from wastewater rates to cover estimated operating, maintenance, debt
service, and capital program costs with consideration of other revenues and financial
reserves.
Wastewater rate recommendations are also intended to assist the City in the transition
to a fully metered water system and usage -based wastewater rates. Rate structure changes
are intended to improve equity across customer classes by better reflecting the cost of
providing service.
CURRENT WASTEWATER RATES
The City's current wastewater rates are summarized in Exhibit III -1. Wastewater rates
were last adjusted in July 2013 with a 2.5 percent across-the-board increase based on
changes in he Engineering New Record's 20 -Cities Construction Cost Index (ENR). This
index is used by the City to annually adjust the level of water and wastewater rates.
Residential flat rates are based on the number of bedrooms in each dwelling, and were
based on estimated sewer flows made prior to the availability of water usage data. Non-
residential wastewater rates are based on the number of sanitary sewer units (SSUs) for
each account, as determined by City staff. One SSU is equivalent to a two-bedroom single
family home. All flat wastewater rates will be phased out as the installation of water
meters is completed. Wastewater usage -based rates are currently available for single
family customers. They include a fixed monthly service charge for each dwelling unit, and
a usage charge based on a customer's winter water usage. Winter water usage is used for
sewer flow estimation since irrigation usage is minimized during this time period. The
City uses the average monthly water usage from December through February for
determining the average winter water use, and hence estimated monthly sewer flow.
The City has a small number of large industrial customers (primarily food processing).
Each of these customers pays for wastewater service based on actual wastewater flows and
loading characteristics. Industrial rates for users discharging into the City's domestic
sewer collection system are included in Exhibit III -1. Separate (lower) rates apply to the
few industrial users that discharge into the industrial line, which requires less treatment.
Those rates are outside of the scope of this study.
At present, tenants of multi -family apartments and mobile home parks are individually
billed for water and wastewater services. As water meters are installed for apartment
complexes and mobile home parks the billing for these services may be transferred from
tenants to property owners.
THE REED GROUP, INC. PAGE 21
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -1
City of Lodi
Current Monthly Wastewater Rates
FLAT RATES
USAGE -BASED RATES
Single Family Residential
Single Family Residential
1 Bedroom
$ 25.83
Monthly Service Charge
$ 23.52
2 Bedroom
$ 34.44
Usage Rate ($/CCF) (3)
$ 2.68
3 Bedroom
$ 43.05
4 Bedroom
$ 51.66
Multi -Family Residential
5 Bedroom
$ 60.27
Not Available
6 Bedroom
$ 68.88
7 Bedroom
$ 77.49
Non -Residential
Multi -Family Residential (1)
Not Available
1 Bedroom
$ 25.83
2 Bedroom
$ 34.44
Industrial (4)
3 Bedroom
$ 43.05
Flow (per MG)
$ 3,487.41
4 Bedroom
$ 51.66
BOD (per 1,000 lbs)
$ 575.51
Mobile Homes
SS (per 1,000 lbs)
$ 359.85
Any Size
$ 25.83
Non -Residential
Per SSU (2)
$ 34.44
Notes:
(1) Includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) The number of sanitary sewer units (SSUs) is determined for each customer
based on usage characterstics and factors adopted by the City.
(3) Usage charge based on winter water use determined as the average from
the prior December -February period. Adjusted each July for each account.
(4) Annual charges apply to industrial users discharging into the domestic sanitary
sewer system. Separate charges apply to discharges to the industrial line.
CUSTOMER BASE AND WASTEWATER FLOW ESTIMATES
Like the water utility, the wastewater utility's customer base is predominately
comprised of single family and multi -family residential customers, along with commercial,
industrial, and municipal customers. Some non-residential customers, including food-
processing facilities, generate very large quantities of wastewater. Because the City is not
entirely metered water usage and sewer flows must be estimated. It is fairly common to
use winter water usage data to estimate wastewater flows. During the winter irrigation
water use (which does not enter the wastewater system) is minimized.
Exhibit III -2 summarizes customer account and wastewater flow estimates derived
from the City's utility billing system for 2012. With residential accounts expressed as the
number of dwelling units, the wastewater utility customer base is about 23,600 accounts
and estimated annual wastewater flow is about 1,184 million gallons (MG). Single family
accounts represent 70 percent of the customers and 62 percent of the wastewater flow.
Multi -family accounts represent 22 percent of the customers and 12 percent of the
wastewater flow. Non-residential accounts, including commercial, industrial, and
THE REED GROUP, INC. PAGE 22
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
institutional, comprise about 8 percent of the customer base, and also represent about 23
percent of annual wastewater. There are eight large industrial customers (discharging to
the domestic system), and they generate about 3 percent of the annual wastewater flow.
The City's largest wastewater users include several of the industrial customers (primarily
food-processing), as well as the City of Lodi, and the Lodi Unified School District.
Exhibit III -2
City of Lodi
Summary of Wastewater Utility Customer Accounts and Annual Wastewater Flow (1)
Customer Accounts
■ Single Family
■ Multi -Family
Non -Residential
Est. Annual Wastewater Flow (MG)
■ Single Family
■ Multi -Family
w Non -Residential
58 ■ Industrial
Notes:
(1) Derived from the City's utility billing system from data for 2012.
(2) Total customer accounts equals 23,614. Residential accounts expressed in dwelling units.
(3) Total estimated annual wastewater flow equals 1,908 million gallons (MG).
In July 2012 the City moved an initial batch of single family residential customers
(about 2,940) to usage -based wastewater rates, as a pilot test of those wastewater rates.
Additional single family customers will be transitioned beginning in July 2014, with an
additional batch each July until all have been transitioned. By July 2020, all of the City's
single family residential customers will be on usage -based wastewater rates. The
transition of multi -family and non-residential wastewater customers to usage -based
wastewater rates will lag the transition to usage -based water rates. In the near term, the
focus will be on mobile home parks and school accounts. Non-residential customers will
need to be categorized into strength classifications (as described later in this section) before
the transition can be made.
ANNUAL WASTEWATER REVENUE RATE REQUIREMENT
The City updated its multi-year financial model with actual revenues and expenses
(pre -audit) for FY 12-13 and the approved budget for FY 13-14. Based on that model, the
City estimates annual wastewater rate increases of up to 3 percent per year may be
required. These increases are believed to be sufficient to meet the utility's operating and
maintenance costs, debt service obligations, and capital program needs through FY 19-20.
THE REED GROUP, INC. PAGE 23
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
The City adjusts its wastewater rates in July of each year, and the rate analyses
presented herein are based on a 3 percent increase effective in July 2014. This is consistent
with the City's financial plan model. The actual rate increase will be based on the change
in the ENR, but will be no more than 3 percent.
The City anticipates an additional 3,700 single family residential customers will be
converted to usage -based rates in July 2014. With that shift, and an overall 3 percent rate
increase, water rate revenues from flat and usage based customers is estimated to be
$14,570,000, as summarized below
Flat rate revenue $9,751,000
Usage -based rate revenue $4,461,000
Industrial line rate revenue $358,000
Total 2014 water rate revenue $14,570,000
No changes are proposed to the City's flat wastewater rate structure. Therefore, a 3
percent rate increase will mean a 3 percent increase to all flat wastewater rates. With a
transition of approximately 3,700 additional single family customers to usage -based rates
in July 2014 the wastewater utility will be billing nearly 6,650 customer accounts through
usage -based rates. The annual wastewater rate revenue requirement for the City's usage -
based wastewater rates will be $4,461,000 for FY 14-15, with this growing portion of the
single family residential customer base on usage -based rates. This $4,461,000 includes
$937,000 related to industrial users that discharge into the domestic collection system.
Industrial users on the industrial line are subject to a separate treatment process, and
different rates (outside of the scope of this study), and represent about $358,000 of the total
FY 14-15 wastewater rate revenue requirement.
COST OF SERVICE ANALYSIS AND RATE DESIGN
The annual wastewater rate revenue requirement of $14,570,000 for FY 14-15 has been
split between flat rates, usage -based rates, and industrial charges based on the number of
accounts and wastewater use characteristics of the customer base within each group. The
cost of service analysis for each group is separately presented below.
Flat Rate Cost of Service Analysis
As the City will be phasing out the system of flat wastewater rates in the next several
years, no changes to the rate structure are proposed. The City's flat rates are based on the
number of bedrooms in each single family and multi -family dwelling unit. Non-
residential flat rate accounts have each been assigned a unique sanitary sewer unit (SSU)
factor, based on estimated usage characteristics, relative to a 2 -bedroom single family
home.
Exhibit III -3 summarizes the distribution of the FY 14-15 revenue requirement for flat
rate accounts of various customer types, and shows the calculation of the monthly flat
wastewater rates with a 3 percent increase. Monthly flat water rates are proposed to
increase by no more than 3 percent in July 2014, with the actual adjustment dependent on
the annual change in the ENR, with a 3 percent cap.
THE REED GROUP, INC. PAGE 24
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -3
City of Loda
FY 14-15 Flat Wastewater Rate Cost of Service Analvsis and Rate Calculation
Customer Group
No. of
Accts. or
DUs (1)
SSU
Equivalency
Factor (2)
Sanitary
Sewer Units
(SSUs) (3)
% of
Total
Alloc. of
Revenue
R mt.
Monthly
Flat WW
Rate
Single Family Residential
1 Bedroom
378
0.75
284
1.2%
$
120,700
$
26.60
2 Bedroom
3,073
1.00
3,073
13.4%
$
1,308,000
$
35.47
3 Bedroom
5,531
1.25
6,914
30.2%
$
2,943,000
$
44.34
4 Bedroom
738
1.50
1,107
4.8%
$
471,200
$
53.21
5 Bedroom
89
1.75
156
0.7%
$
66,300
$
62.08
6 Bedroom
2
2.00
4
0.0%
$
1,700
$
70.95
7 Bedroom
1
2.25
2
0.0%
$
1,000
$
79.81
Duplexes, Triplexes, Fourplexes,
Apartments, and Condominiums
1 Bedroom
1,359
0.75
1,019
4.4%
$
433,800
$
26.60
2 Bedroom
3,517
1.00
3,517
15.4%
$
1,496,800
$
35.47
3 Bedroom
164
1.25
205
0.9%
$
87,300
$
44.34
4 Bedroom
3
1.50
5
0.0%
$
1,900
$
53.21
Mobile Homes
Any Size
492
0.75
369
1.6%
$
157,000
$
26.60
Non -Residential
Per SSU
1,853
Varies
6,255
27.3%
$
2,662,300
$
35.47
Totals
17,200
22,908
$
9,751,000
Notes:
(1) Estimate based on transition of about 3,700 additional single family accounts to usage -based billing.
(2) From existing flat wastewater rate structure.
(3) Based on one sanitary sewer unit (SSU) equivalent to a 2 -bedroom home.
Usage -Based Rate Cost of Service Analysis
A more detailed cost of service analysis is warranted for the City's usage -based
wastewater rates. However, the City does not yet have sufficient information for the
complete development of wastewater rates that consider wastewater flow as well as
different strength categories for various types of non-residential customers. The following
steps will need to be taken in order for fully develop these wastewater rates:
• All non-residential customers should be assigned to a low, medium, or high
strength category based on type of business. City staff and consultant plan to
work on this jointly in 2014 using industry guidelines for assigning different
types of businesses. It is estimated that about 80 percent of non-residential
users will fall into a low strength category, 15 percent into medium strength,
and 5 percent into high strength.
• The size of water meters should be identified (or estimated) for all multi -family
and non-residential accounts. At present, about 75 percent of non-residential
accounts are metered. The City will begin metering multi -family accounts and
the remaining non-residential accounts in a few years. Estimates of future
meter sizes would be adequate to move forward with rate analyses.
THE REED GROUP, INC. PAGE 25
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
• Estimate wastewater flow from each customer class based on winter water
usage data. Data is now becoming available for single family customers, and is
available for most non-residential accounts (those with water meters), but not
for multi -family customers or about one-quarter of non-residential customers.
Once a significant portion of multi -family customers have been metered it may
be possible to develop reasonable estimates for this customer class. It may also
be possible to extrapolate water usage data from existing metered non-
residential accounts to those that are unmetered, though some uncertainty
would remain because of the non-homogenous nature of non-residential water
use.
• Assign standard biochemical oxygen demand (BOD) and suspended solids (SS)
loading factors to residential and low, medium, and high strength non-
residential customer categories. This would be accomplished using available
industry guidelines, as well as through calculations that seek to balance
calculated wastewater flow and loading data from wastewater customers with
the actual inflow data at the City's White Slough wastewater treatment plant.
Under current usage -based wastewater rates, all single family customers are subject to
the same fixed monthly service charge, even if meters vary in size. This is due to the fact
that variation in meter sizes for single family homes is due to either landscape irrigation
requirements or fire flow capacity requirements within the home. It is not related to
wastewater capacity needs. The independence from meter size does not extend to other
customer classes, however, because demand characteristics (for both water and
wastewater) are much more varied for each customer connection.
The proposed usage -based wastewater rates for FY 14-15 extend the current usage -
based rates applicable for single family customers to include fixed monthly service charges
based on meter size that should be applied to multi -family and non-residential accounts.
The wastewater usage rate for multi -family customers would be the same as that for single
family customers. Placeholder estimates are also provided for non-residential low,
medium, and high strength categories. Proposed industrial rates reflect a 3.0 percent
overall increase in each rate component.
The development of fixed monthly wastewater service charges for multi -family and
non-residential accounts follows the same basic cost allocation methodology as for water
rates. In this case, a review of wastewater costs resulted in a recommended allocation of
the wastewater rate revenue requirement to customer, capacity, and commodity
components. The allocation of costs, as well as the resulting rate calculations, reflects a
balanced approach to considering different rate -setting objectives. Based on a review of
wastewater system financial information, the cost allocation resulted in a distribution of
the costs to customer, capacity, and commodity components of 5 percent, 45 percent, and
50 percent, respectively. Like the water rates, the monthly service charge will recover
customer and capacity costs, and usage rates will recover commodity costs.
Exhibit III -4 summarizes the calculation of fixed monthly wastewater service charges
based on size of the water meter. The monthly service charges are calculated by allocating
customer costs equally across all customer accounts and by allocating capacity related costs
in proportion to meter capacity.
THE REED GROUP, INC. PAGE 26
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -4
City of Loda
FY 14-15 Monthly Wastewater Service Charae Calculation
Customer Group
Customer
Costs (1)
Capacity
Costs (2)
Hydraulic
Capacity
Factor (3)
Monthly
Service
Char a (4)
Single Family Residential
All Connections
$
2.42
$
21.80
1.00
$
24.23
Multi -Family and Non -Residential
3/4" meter
$
2.42
$
21.80
1.00
$
24.23
1" meter
$
2.42
$
36.41
1.67
$
38.83
1 1/2" meter
$
2.42
$
72.60
3.33
$
75.03
2" meter
$
2.42
$
116.21
5.33
$
118.63
3" meter
$
2.42
$
218.03
10.00
$
220.45
4" meter
$
2.42
$
363.46
16.67
$
365.88
6" meter
$
2.42
$
726.70
33.33
$
729.12
8" meter
$
2.42
$
1,162.76
53.33
$
1,165.18
Notes:
(1) Based on 5 percent of revenue requirement allocated equally to each customer.
(2) Based on 45 percent of revenue requirement allocated to each customer in
in proportion to meter capacity.
(3) Meter capacity in relation to capacity of a 3/4" water meter.
(4) Sum of customer and capacity costs for each meter size.
The City's wastewater rate structure currently includes a uniform wastewater usage
rate for single family customers. For FY 14-15, that rate will be increased by up to 3.0
percent. The same rate would also apply to multi -family customers, as the strength
characteristics (BOD and SS) for single family and multi -family customers are the same.
Wastewater flows for single family customers are estimated based on the average
monthly water use from December through February of each year. This average winter
water use is a reasonable estimate of wastewater flow throughout the year, because it
generally reflect water usage in the absence of irrigation demands. Each July, the City
determines a wastewater usage charge based on the winter water use and the applicable
wastewater usage rate. The monthly service charge is then added to the usage charge to
arrive at the total wastewater bill. This bill amount then remains fixed until the following
July, when the process is repeated with the then most recent winter water use data and
current wastewater rates.
Winter water use can be used to determine wastewater usage charges for multi -family
and non-residential customers as well. One potential problem, however, could occur with
businesses that have a seasonal component where winter water usage did not necessarily
provide a reasonable estimate for wastewater flow throughout the year. It is
recommended that the Director of Public Works be extended authority to adjust the
wastewater flow volume (usage) for individual customers where this is a concern.
THE REED GROUP, INC. PAGE 27
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Wastewater utilities generally identify different strength -based usage charges for non-
residential customers due to the variation in waste discharges. A fairly simple approach to
strength -based rates, and one recommended for the City, is to establish low, medium, and
high strength categories. All non-residential customers (with the exception of industrial
customers) would be assigned to one of these categories, based on the type of business. A
higher usage rate would be established for the higher strength categories, commensurate
with the costs of removing BOD and SS for wastewater.
Until non-residential customers can be assigned to a strength category, and additional
meter size and water use data obtained, it is recommended that the City use "placeholder "
estimates for strength -based wastewater rates for non-residential customers. These would
give City staff, as well as customers, a sense for what future rates may be like under this
rate approach.
PROPOSED WASTEWATER RATE SCHEDULES
Current and proposed wastewater rate schedules for both flat rates and usage -based
rates are presented in Exhibits III -5 and III -6, respectively. All rates reflect an overall 3.0
percent revenue increase relative to the current wastewater rates.
Exhibit III -5
City of Lodi
Current and Pr000sed Flat Wastewater Rates
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Proposed flat wastewater rates for schools are to be determined on the
basis of 18 student per SSU.
THE REED GROUP, INC. PAGE 28
Current
Proposed
Jul. 2013
Jul. 2014
Rate Increase 1 -->
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
2 Bedroom
$
34.44
$
35.47
3 Bedroom
$
43.05
$
44.34
4 Bedroom
$
51.66
$
53.21
5 Bedroom
$
60.27
$
62.08
6 Bedroom
$
68.88
$
70.95
7 Bedroom
$
77.49
$
79.81
Duplexes, Triplexes, Fourplexes, Apartments, and Condominiums
1 Bedroom
$
25.83
$
26.60
2 Bedroom
$
34.44
$
35.47
3 Bedroom
$
43.05
$
44.34
4 Bedroom
$
51.66
$
53.21
Mobile Homes
Any Size
$
25.83
$
26.60
Non -Residential
Per SSU (2)
$
34.44
$
35.47
Notes:
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Proposed flat wastewater rates for schools are to be determined on the
basis of 18 student per SSU.
THE REED GROUP, INC. PAGE 28
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
Exhibit III -6
City of Lodi
Current and Pr000sed Usaae-Based Wastewater Rates
Notes:
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Usage charge based on winter water use determined as the average from
the prior December -February period. Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
Wastewater Rates for Schools
During this study, a separate analysis was performed to examine the water use
characteristics and estimate wastewater flows for schools in the Lodi Unified School
District (LUSD). At present, schools are charged for wastewater service based on student
population. High schools are assessed based on 15 students per SSU, and elementary and
middle schools are assessed based on 20 students per SSU. An examination of winter
water use data (excluding December due to the winter break), as well as consideration of
THE REED GROUP, INC. PAGE 29
Current
Jul. 2013
Proposed
Jul. 2014
Rate Increase (l)-->
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$
23.52
$
24.23
Multi -Family and Non -Residential
3/4" meter
$
24.23
1" meter
$
38.83
1 1/2" meter
$
75.03
2" meter
$
118.63
3" meter
$
220.45
4" meter
$
365.88
6" meter
$
729.12
8" meter
$
1,165.18
Usage Rates ($/CCF)
Single Family (2)
$
2.68
$
2.76
Multi -Family (2)
$
2.76
Non -Residential (2) (3)
Low Strength
$
2.76
Medium Strength
$
3.45
High Strength
$
4.49
Industrial (4)
Flow (per MG annually)
$
3,487.41
$
3,592.03
BOD (per 1,000 lbs annually)
$
575.51
$
592.78
SS (per 1,000 lbs annually)
$
359.85
$
370.65
Notes:
(1) Actual rate adjustment will depend on the annual change in the ENR, and
will be no more than 3 percent.
(2) Usage charge based on winter water use determined as the average from
the prior December -February period. Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
Wastewater Rates for Schools
During this study, a separate analysis was performed to examine the water use
characteristics and estimate wastewater flows for schools in the Lodi Unified School
District (LUSD). At present, schools are charged for wastewater service based on student
population. High schools are assessed based on 15 students per SSU, and elementary and
middle schools are assessed based on 20 students per SSU. An examination of winter
water use data (excluding December due to the winter break), as well as consideration of
THE REED GROUP, INC. PAGE 29
CITY OF LODI WATER AND WASTEWATER RATE UPDATE STUDY
the overall level of activity at schools throughout the year (including reduced activity in
summer months) resulted in a determination that all schools of the LUSD should be
charged for wastewater service based on 18 students per SSU. While this change will affect
the wastewater bills of all schools, it will have only a minor affect on the aggregate for all
schools.
METER INSTALLATION AND TRANSITION TO USAGE -BASED BILLING
The City continues to install water meters on all unmetered water service connections.
Below is a summary of the status of the metering program and plans to transition
customers from flat wastewater rates to usage -based wastewater rates. Each July an
additional batch of customers is transitioned to usage -based wastewater rates.
• Single Family - More than 50 percent of single family homes now have water
meters with two- to three -thousand additional meters installed each year. The
transition to usage -based wastewater rates is lagging the transition to usage -
based water rates by about 18 months. In July 2014, a second batch of single
family customers will transition to usage -based water rates (about 3,700
accounts). The transition to usage -based wastewater rates for single family
customers is expected to be completed by about July 2020.
• Mobile Home Parks - All mobile home parks have now been provided with
master water meters on the connections serving each park. The City plans to
convert all mobile home parks to usage -based wastewater rates in the near
future.
• Multi -Family - The City will begin installing water meters for apartment and
condominium complexes, and plans to complete these installations by 2018. All
multi -family accounts (including duplexes, triplexes, and fourplexes) are
expected to transition to usage -based wastewater rates in July 2020. Similar to
mobile home parks, at that time billing may shift from tenant to property
owner.
• Non -Residential - At present, about 75 percent of non-residential accounts have
water meters and are subject to usage -based water rates. With the exception of
industrial users, all non-residential customers currently pay flat wastewater
rates. Further analysis will be needed to fully develop a strength and usage -
based wastewater rate structure for non-residential accounts. It may be several
years before these customers are fully transitioned to usage -based rates.
The transition from flat rates to usage -based rates may affect the total amount of
customers' wastewater bills. For single family customers many will have a decrease in
their monthly wastewater bill with that transition, while others may have an increase.
Multi -family customers will generally benefit from the transition to usage -based
wastewater rates. It is too early to tell how individual non-residential customers may be
affected by the transition.
THE REED GROUP, INC. PAGE 30
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Exhibit D
2
1
1
3
City of Lodi -- Water Utility_
_
4
Financial Plan
Summary
5
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
6
2.5%
2.5%
2.5%
3.0%
3.0%
3.0%
7
]an. 2014
Jan. 2015
Jan. 2016
Jan. 2017
Jan. 2018
Jan. 2019
10
WATER OPERATING FUND (180)
Be�iaRRi Balance
7,038455
7 239 640
8,310. 229
7,741.,668
4,590,607
4,239,996
11
Revenues_
12
Water Sales
12,716 000
13 059 000
13,412,000
13;f807,000
14 286,000
14 7"W 000
13
Interest Earnings
141,000
154 000
159,000
122f.000
87,000
162,000
14
Other Revenues
791,070
21580,400
269,000
272 000
275,000
278,000
15
1 Transfer from Fund 182 for Debt Service
109,000
109 000
109,000
109 000
109,000
16
Total Revenues
13,64 070
15,902,400
13,949,000
14,310,000
14,757,000
15,293.,000
17
Expenditures
18
Transfer Out to General Fund Cost of Services
780,000
780,000
780,000
780,000
780,000
780,000_
19
20
Transfer Out to Capital Fund 181 for rojects
To Capital Fund 181 (Depreciation)_
4500000
-6000 000
5s500 000
8250,000
5 700,000
1 000,000
22
Personnel Services
20930-00 _
2,028,000
_2,098,000
2,170,000
2 244,Q.0Q
2,320 000
23
Utilities
755,000
664,000
693,000
723,000
754 000
787,000
24
Sups, Mat'Is. Services & Other
2,963,000
3 052 000
3,140_,000
3,230,000
3,324 0Q0
3,419000
26
Debt Service
27
1991 CSDW Loan Payments
-
-
-
-
-
_ -
28
Net 2010 Rev. Bond Payments
2355 886
2,307 811
2,306,561.
2 308 061
2,305,611
2,307,111
29
Total Expenditures
13,46,;;6
14,831,811
14,517,561
17 461,061
15,107611_
10,613,111
30
31
EndinBalance
7239,640
8 310 229
7,741,668
4 59A 607
4 239 996
$ 91985
32
ODeratina Reserve .25%
1,648,000
1,631,000
1,678,000
1 726000
1,776000-
1.827,000
33
Available Balance
5,591,640
6,679,229
6,063,668
2,864,607
21463,996
71092,885
34
Debt Service Coverage (min. 1.25)
3.46
4.09
3.15
3.21
3.32
3.46
35
36
•
37
Beginning Balance
3,809,103
3,268,379
2,124 379
323,379
196 379
177 379
38
Revenues
39
Operating Transfers In
4,549,755
6 000 000
5,500,000
8,250,000
5,700,000
1,000,000
40
Interest Earnings
70,000
53,000
24,000
5,000
4,000
5,000
41
Retrofit Meter Install. Charge
926,000
-
-
-
-
-
42
Debt Proceeds
-
-
-
_
_
-
43
Total Revenues
5,545,755
6,053,000
5,524,000
8,255,000
5 704 000
1,005,000
44
E�enditureS
�_
47
Water Meter_]Main Install. Project
4 780 000
5,487,000
6 177 000
7 264 000
2 848 000
-
48
Water Taps
75,000
75,000
77,000
79,000
82,000
84,000
49
Miscellaneous Water Mains
50,000
-
51,000 1
53,000
54,000
56,000
50
Commercial Meter Replacements
5,000
5,000
5,000
5,000
5,000
6,000
57
Financial S stem Replacement
250,000
250,000
-
-
-
-
58
GAC & Meter Re I DBCP
324,000
300,000
300,000
300,000
3001000
300,000
5.9
UWMP Update
-
-
51,000
-
-
-
61
Fire Station 2 Water Main
25,000
-
-
-
-
-
6itl
Meter Fixed Network
-
-
-
-
-
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64
MSC�KQfu Parkin Lot
Debenedetti Enclosure
F_Y_13-14
75 000
30 000
F_Y 14-15
-
FY 15-16
� -
-
FY 16-17
-
-
FY 17-18
- -
- �[
FY 18-19
~ -
-
65
Sacramento Street
127,479
-
-
-
-
-
66
Southwest Gateway Water Tank
-
-
-
200,000
2,000,000-
67
Surface Water Treatment Plant PS Generator
-
-
300,000
-
-
-
68
1
-
-
166 000-
69
_Well
Well 2 -Replace Motor
-
-
103,000
-
-
-
70
Well 6R -Pump Rehab�Repl
116,000
-
-
-
-
-
72
73
Well 5 -Pump Rehab & Electrical Upgrade
^Well 7 -Pump RehaWRepl-
-
1455000
-
-
-
-
74
Well 8�Pump Rehab,, Electrical Upgrade & Chlorination
-
245;000
-
-
-
-
75
Well 1.0 - PumpRehab
-
120 000
-
-
-
-
76
Well 11
-
-
-
175,000
-
77
Well 12 -Pump Rehab/Rep]
- _
-
-
2_64 U00
-
-
78
Well 13 -Pump Rehab & Electrical Upgrade
-
135,000
-
-
-
-
79
Well 14 -Pump Rehab/Re I
I -
-
-
-
181,000
-
80
Well 15 -Pump RehabJRe I
-
-
-
-
190,000
-
81
Well 16 -Pump Reh#§LEiqctrical U rade
-
-
-
-
-
224,000
82
Well 17 -Pump Rehab/Electrical Upgrade
-
-
-
-
-
207,000
83
Well 18 -Pumpb Rehab/Electrical Upgrade
-
40,0_00
-
-
-
-
84
Well 19 -Pump Replacement
4,000
-
-
-
-
-
85
Well 20 -Pump Rehab/Electrical Upgrade
-
145,000
-
-
-
-
86
Well 21
-
-
-
-
-
-
87
Well 22
-
-
-
-
-
88
Well 23
-
-
-
-
-
-
89
Well 24 - Pump Rehab & Electrical Upgrade
135,000
90
Well 25
-
-
-
-
-
-
93
Well Site Improvements
-
100 00.0
-
-
-
-
97
Vehicles/Equipment
90,000
150;000
95,000
442,000.
63.000
45,000
100
Total Expenditures
6,086 479
7,197,000
7,325,000
8 382000
5,723,000
922,000
101
102
Ending Balance
3,768,,379
2,124,379
323,379
196 379
177f379
260 Sig
103
MI
105
IMF WATER FACILITIES (182)
lnnf Balance
6,846).
52,399
53,399
54,399
55 399
56,399
106
Revenues
107
108
Water Impact Mitigation_ Fees
Transfer in from Capital Fund 181 lant design
109,000
-
109 000
-
109,000
-
109,000
109,000
-
109,000
-
109
Transfer In From Capital Fund 181 Well _#27)-
_
-
-
-
-
-
110
Interest Earnings
---l-LO-00
1,000
1,000
1 000
1,000
111
Total Revenues
I 109,000
110,000
110'.000
110,000
110,000
110,000
112
Expenditures
113
Previous projects
-
-
-
-
-
114
Surface Water -Design
-
-
-
-
-
-
115
GPS Control Grid
-
-
-
-
-
-
116
Well #27 - Pum Motor & Site Im r.
-
-
-
-
-
-
117
Well #28
-
-
-
-
-
118
IMF
-
-
-
-
-
-
119
_Update
Transfer out to 1218 for General Plan
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FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
120
Transfer to Fund 181 forast proiects
-
-
-
-
-
-
121
Transfer to Fund 181 for Well 27
49,755-
122
Transfer to_Operations Fund 180 for Debt Service
-
109,000
10000
109 000
10000
109,000
124
Total Expenditures
49,755
109 000
109,0001
109,000
109,000
109,000
125
126
Ending Balance
Owed Fund 180 for Debt Service
52,399
5,345,000
53,399
6 775 000
54,399
8j204,000
S5,399
1 56,399
97,399
127
j 9,634,000 11 062000
12,491,000
175
176
177
178
Aggregate End -of -Year Balance *
Oper-toric Reserve t25.%)
Restricted DS Reserve
2010 COP Proceeds
12,916,000
1,648 000
2,356,00_0
-
_
12,844,000
1,631 000
2,356,000
-
10,475,000_
1,67.8,000
2 356. 000
-
711981000_
1,726,000
6;830,DO0
1,776,000
_11,594_,000
1,827,000
179
180
2,356,000 2,35 000
- -
2,356,000
-
181
182
Rate Stabilization Fund
-
-
-
-
-
-
183
Net Available for Capital PCO acts.
8,912,000
8 857 000
6441 000
3 116,000
2,698,000
7,411 000
186
187
_
Cit
y of Lodi -- Water Utility
188
Financial Plan
Assumptions
189-
195"
Financial Assumptions
191
General Inflation
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
192
Labor Inflation
3.4%
3.4%
3.4%
3.4%
3.4%I
3.4%
193
Material/En rInflation
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
194
Construction Inflation
2.5%
2.5%
2.5%
3.0%
3.0%
3.0%
195
Interest Earnings
2.0%
2.0%
2.0%
2.0%
2.0%
2.5%
196
Customer Account Assurit�iiDns.
197
No. of DUS/Accounts
23,506
23,556
23,606
23,656
_Z3(706
23,756
198
199
No. of 3/4" Eq. Mtrs.
No. of New Connections
25 554
50
25,604
50 j
25,654
50
25,70L
50
25,754 25,804
50 50
200
Customer Growth Rate
0.20%1
0.20%
0.19%1
0.19%
0.19%
0.19%
Water Miti ation Impact Fee
I
S203
Residential
1,263
1,263
$ 1,263 $
1,263
1,263
$ 1.263
Non -Residential
3,103 1
3103
3,103
3%103
3103 1
3,103
The Reed Group, Inc. DRAFT --4/23/2014
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Exhibit E
2
3
City of Lodi
-- Wastewater Utility
4
Financial Plan Summar
13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
t5FY
6
OPERATING FUND i
84Wnidng Balance
2.5%
3,240,603
2.5%
3,811,123
2.5%
2,639,962
3.0%
4,538,962
3.0%
61020:062
3.0%
5,98,262
7WASTEWATER
8
9
Revenues
10
12
Wastewater Sales_ _
Interest Earnings
1 Other Revenues
Transfer In for Debt Service 172
Transfer In for Debt Service (M),
Transfer From/(o)_ Rate Stabilization Fund 174
14,118
37,000
234,400
Ll LOTO CL.
16,000
-
_14,499,000
43,000
241 200
31,000
149,000_
-
14 $ Q,_000
110,000
248,000
110,_000
150_,000
-
15�3�000
176,000
255,900
1101000
154,000
-
15 858.000
228,000
263,800
110.000
154,.000
-
_
16365,0QC
220 OQU
271.,800
110 .pf}0_
154,000
-
13
14
15
16
18
Total Revenues
14,436,4Q.0
14,963,200
15 508,000
16 061,900
164613 800
17 120,800
19
20
�MgMMitr�res
_P ererdtin Transfers Out (to GF)
-
-
-
-
-
-
21
Transfer Out to Gen'I Fund Cost of Services
1,068,000
1 068,000
1,068,000
1,068,000
1, 68,000
1,451,478
22
Transfer Out to WW Capital Outlay 171
-
5,500,000
2 750 000
3,500,000
5 500000
500,000
23
Transfer Out To WW Cap. Rsrv. 172
-
-
-
-
-
-
24
Administration &Other
1,124,330
1,160,173
1 204,000
1248 800
1 294 600
1,342,400
25
Plant Maintenance
3,948,650
34989,577
4146 000
4,308,000
4 476 000
4,652 000
26
Sanitary System Maintenance
611,260
406 782
422 000
438,000
454,000
471,000
27
Storm Drainage Maintenance
415,710
313,813
327,000
340,000
354,000
368000
28
Industrial System Maintenance
23,930
25 016
26,000
27,000
28,000
29,000
29
2003 Wastewater COP Debt Service
3,050,000
-
-
-
-
-
30
2004 Wastewater COP Debt Service
98,000
98,000
98,000
98 000
98 000 1
98,000
31
2007 Wastewater COP Debt Service
14604,000
1 603,000
1,607,000
1606 000
1,614,000
1
,617,000
32
2012 Wastewater Refinancing
1,922,000
1 970 000
11961, 000
1,947,000
1 949,000 !
1.949.000
33
Total Ex enditures
13,865,880
16134,361
13,609,000
14,580,800
16,835 600
12,477,878
35
Ending Balance
3,811,123
2 639 962
4,538,962
6020 062
5 798 262 j
10,441,184
36Operating.
Reserve 25%
Available Balance
D.e!A Service Coverace (mli1. = 1.20.
2,9.86,000
8259123=,_
1.11
2,166,000
473,962
2.18
2 225,000
2{313,962
2.27
2,283,000
3,737,062
2.36
347,000
3,451,262
2.44
2,5 7,000 _
7Lt�934 ,184
2.40
37
38
39
without COST
2.33
2.47
2.56
2.66
2.73
2.80
40
MYLU 947
41
1 Beginning Balance
9,242,732
7 767 857 1
295,160
1,606,589
245 018
417 446
The Reed Group, Inc. DRAFT --4/23/2014
The Reed Group, Inc. DRAFT -- 4/23/2014
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FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
42
Revenues
43
44
45
46
47
48
49
Transfer In from 170
Transfer In (from 17_0-Deprec.)
Other_Revenue
Investment Earnings
Total Revenues
FXpendinres
-
-
96,_429
-
96429
5,500,000
-
96,429
-
5,596,429
2,750,000
96,429
2,846,429
3,500 000
-
_96,429_
-
3,596,429
5 500'000
-
96,429
-
5,596,429
500,000
-.
96_,429
-
596,429
52
61
62
63
Financial ! jy5tem Replacement
Elm to Pine Alley S.ewu/Laurel Storm Project
Misc. System Relocations
Misc. Wastewater Taps
250.000
33,000
i5,060
40,000
250, 000
-
351000
40,000
-
-
36,000
42,000
-
-
38,000
43,000
-
-
39 000
45,000
-
-
41,000
47,000_
64
65
66
Collect. System Capac. Enhanc. Projects
Wastewater Main Replac./Lining Proms
Storm Drain Trash Handling System
-
100,000
-
-
2 000,000
700,000
208,000
104,000
-
22,000
2,163,000
-
225,000
-
-
23,000_
-
-
67
Sacramento Street
56304
-
-
-
-
-
68
Lodi Lake Pump Station
-
-
100,000
1,000,000
-
69
Lodi Lake Outfall Line
-
-
100,000
-
-
-
70
74
Realignment of Domestic & Industrial pipe
Domestic Trunk Assessment and Rehab
-
1,082,125
-
-
-
-
200,000
-
2,000,000
-
-
75
MSC/Kqf4 Parking Lot
75,000
-
-
-
-
-
81
Vehicles /Equipment
75,000
545,000
104,000
162 000
169,000
175,000
82
White Slough Compliance Studies & R is
-
-
-
-
-
-
83
Plant Maint. & Land Applic. Area Improv.
-
270,000
-
-
-
-
85
Influent Screening Replacement
-
2,000,000
-
-
-
-
86
UV Disinfection Upgrade
-
300,000
-
-
-
-
87
Aeration Diffuser Replacement
-
-
-
500,000
-
-
88
Cloth Filter Media Replacement
30,000
-
31,;000
-
34,000
-
89
Digested Sludge Line to Presses
30,000
-
-
-
-
-
90
Electrical Upgrades
-
600,000
-
-
-
-
91
Admin/Ops Buildinq Im rovements
-
750 000
-
-
-
-
92
Rotary Press Maintenance Crane & air compressor
30,000
-
-
-
-
-
93
Pond Gates
35,000
-
-
-
-
-
94
Shop Rollup Door
8,000-
95
Emergency Generator Maintenance
20,000
-
-
-
-
96
Road to Outfall Repair
10,000
-
-
-
-
97
Secondary Scum Trough Drives
12,000
--
98
Misc Paving
10,000
1,000,000
-
-
-
-
99
SCADA Upgrades/PLC Replacement
-
130,000
-
-
-
-
100
Primary Chain & Flights
80,000
45.000
-
-
-
-
104
Effluent Irri ation Improvements
-
-
780,000
1,622,000
-
-
11051
Dewatering screwpress
-
1,200,000
-
-
-
The Reed Group, Inc. DRAFT -- 4/23/2014
The Reed Group, Inc. DRAFT --4/23/2014
A
G
H
I
I
K
L
5
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY -18-19
106
_Irtigat#an_Conveyance & Pumping Construction
Micro Turbine
-
-
-
-
1,800,000
-
108
- 11.2001000
- - -
-
112
Fence R�airs/Upgrades
-
-
26,000
-
-
291000
113
Anaerobic Digester Painting
90,000
-
-
-
-
-
116
WSWPCF Building/Restroom Expansion
300,000
-
-
-
-
-
117
_Plant Security Enhancements
Miscellaneous Future Projects -
-- -
130,000
-
-
104,000 -
-
108,000
- -
-
112,000
-
117,000
-
118
100,000 100 000
-
120
Total Expenditures
1,571,304
13,069,125
1,535,000
4,958,000
5,424,000
432,000
122
123
Ending Balance
7,767,857
295 160
1,606,589
245 018
417,446
581,875
124
125
126
Beglnnfng Bafarnae _
Revenues
In from 170-
_-
�3�35,539
^�
-1
1135,539
3,135
_
3,135539
x135 539 335,539
127
129
_
130
131
_Transfer
Interest Earnings - _
Total Revenues _ _
31,000
31,000
110,000 !
110,000 1
110,000 !
110,000
31,000 31,000
110,000 1 110,000 1 110,000
110,000
132
Expenditures
134
White Slou h Solids Handling Facility
-
135
White Slough Sludge Thickening-
-
-
-
-
-
136
Transfer Out to 170 for Debt Service
31,000
31,000
110,000
110,000
110,000
110,000
138
Total Expenditures
31,000
31,000
110,000
110,000
110,000
110,000
140
Ending Balance
3,135,539
3 135 539
3.135,539
3,135,539
3 135 539
3,135,539
141
142
143
_Restricted Debt Service Reserve -
2007.cOP Proceeds (w/ fiscal agent) _
Cash Deficit (amt. owed for past DS)
2 379,5362,379,536
2,3791-536
756,003
-
2 379,536
756,003
-
2,379,536
756,003
-
2,379,536
755,0.03_
-
756,003
i
_756,003
--
144
145
146
IMF WASTEWATER FACILITIES (173)
147
Beginning Balance
Revenues
_15,775
148,775
153,775
153,775
153,775
148
T_149.4.775
149
_Wastewater IMF_
Interest Earnings
149,000
149,000
149,000
149 000
149,000
151
_ _ _149,000
1,000
5,000 5 000 5,000
5,000
otal Revenues
l� 1494000 150,000
154,000
154,000
154,000
154,000
K56Ti
ransfer Out (to170 for Debt Service]
Out refund PC cE
16,000
14_9,000
Y -
150,000
-
154,000
-
154000
-
154ansfer -
The Reed Group, Inc. DRAFT --4/23/2014
The Reed Group, Inc. DRAFT -- 4/23/2014
A
G
H I I
K L
5
FY 13-14
-
FY 14-15 FY 15-16 FY 16-17
- - -
FY 17-18 FY 18-19
! - -
159
City -Wide IMF Program date
161
Total Expenditures
16,000
149,000 150,000 154.,000
j 154,000 154,000
Ending Balance
_Owed to Fund 170 for Debt Service
-
163
148,775
I[
149,775 153 775 E 153,775
! 153,775 153,775
164
165
2,199,000
3,010,000 3,823,000 4,631,000
5,444,000 6,259,000
166
167
168
Beginn1n_g Balance
Revenues
_
_500,000 500,000 500_,000
500,000_
500,000 500_,000
169
Transfer In from 170
Total Revenues
-
- - -
-
171
-
172
173
Expenditures
Transfer Out to
o170175
_
-170-
775
177
178
Total Expenditures
i F'00,000 500,000 500 000
Ending Balance
500,000
500,000 500,_000
I
179
180
_
Ag_gnx to^End-0f: Ysar Balance
Reserve (25%) _
Restricted_ DS_ Reserve
_2007 COP Proceeds _ _
Rate Stabilization Fund
Net Available for Capital Projects
15,353,000
?,986,000
2,379,536
756,003
6,720,000_I. 9,935,000_ 10,054,000_110,005000
2,_166,_000 2 225,000 Y Z�Z83;000
2.,379,536_ 2 379,536 23795536
756,003 756,003_ 756,003_
14,812,000
2 347,0002,507,000
2 379,536 2 379,536
756,003 756,003
181Operating
182
183
184
185
186
500,000
500,000 500.1000 1 500,000
500,000 500,000
8,741,461
91_8,46_1 _4,074,461 4,135,461
4,022,461 8,669,461
_
187
-
-
188
199
_ _ My of Lodi -- Wastewater_Utilityl
Financial Plan Assam ons
200
201
202
Financial Assumptions _
General Inflation3.09/b
Labor Inflation _ _ _
Materia!/Ener Inflation _
Y
Construction Inflation -
Interest Earnings
Cust. Growth (SSUS) -
Wastewater Mittgation Impact Fee _ _ _
Residential 3/4"
Non -Residential 3/40
j 3.4%
4.5%_
- 4.0%
j 1.0%
3.0%
3.4%
4.5%
w 4.0%
1.0%
_ _ 50
_ 1,720
4,225
3.0%
~ _ 3.4%
4.5%
_ . _ _ - 4.0%
3.5%
3.0%
_ _ _ _ 3.4%
_ _4.5%
4.0%
3.0%
3.4%
4.5%
4.0%
3.0%
3.4%
4.5%
4.0%
203
204
205
206
207
208
3.5%
3.5%
3.5%
�50
1 _ 5_0
$ 1,720
50
_$ 1,720
4,225
_ 50
_�_ _
$ . T_ - 1,720
4 225
L22
209
210
211
$ 1,720
4,225
4,225
The Reed Group, Inc. DRAFT -- 4/23/2014
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.2014)
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
29.90
$
30.65
$
31.57
$
32.52
$
33.50
$
34.51
$
35.55
2 Bedroom
$
35.91
$
36.81
$
37.91
$
39.05
$
40.22
$
41.43
$
42.67
3 Bedroom
$
43.04
$
44.12
$
45.44
$
46.80
$
48.20
$
49.65
$
51.14
4 Bedroom
$
51.72
$
53.01
$
54.60
$
56.24
$
57.93
$
59.67
$
61.46
5 Bedroom
$
62.03
$
63.58
$
65.49
$
67.45
$
69.47
$
71.55
$
73.70
6 Bedroom
$
74.44
$
76.30
$
78.59
$
80.95
$
83.38
$
85.88
$
88.46
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
2 Bedroom
$
30.79
$
31.56
$
32.51
$
33.49
$
34.49
$
35.52
$
36.59
3 Bedroom
$
36.94
$
37.86
$
39.00
$
40.17
$
41.38
$
42.62
$
43.90
4 Bedroom
$
44.32
$
45.43
$
46.79
$
48.19
$
49.64
$
51.13
$
52.66
Mobile Homes
Any Size
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
Non -Residential
Existing unmetered
Varies
+2.5%
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.2014)
(Jan.2014)
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
2.5%(2)
(3)
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
69.63
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
119.79
$
122.78
$
114.71
$
109.84
$
101.52
$
104.57
$
107.71
$
110.94
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
64.28
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
75.27
$
77.15
$
84.29
$
94.17
$
101.52
$
104.57
$
107.71
$
110.94
3" meter
$
105.38
$
108.01
$
132.74
$
162.18
$
187.65
$
193.28
$
199.08
$
205.05
4" meter
$
135.51
$
138.90
$
193.14
$
254.80
$
310.67
$
319.99
$
329.59
$
339.48
6" meter
$
195.68
$
200.57
$
333.69
$
480.82
$
617.94
$
636.48
$
655.57
$
675.24
8" meter
$
255.91
$
262.31
$
494.23
$
747.94
$
986.82
$
1,016.42
$
1,046.91
$
1,078.32
10" meter
$
316.01
$
323.91
$
674.61
$
1,056.08
$
1,417.30
$
1,459.82
$
1,503.61
$
1,548.72
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.97
$
0.96
$
0.99
$
1.02
$
1.05
Tier 2 (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.33
$
1.27
$
1.31
$
1.35
$
1.39
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.70
$
1.59
$
1.64
$
1.69
$
1.74
Multi -Family and Non -Residential
(1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.09
$
1.14
$
1.17
$
1.21
$
1.25
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
City of Lodi
Current and Pro osed Flat Wastewater Rates
Future Rate Ceiling
Current Proposed Proposed Proposed Proposed Proposed
Jul. 2013 Jul. 2014 Jul. 2015 Jul. 2016 Jul. 2017 Jul. 2018
Rate Increase --> 3.0% 3.0% 3.0% 3.0% 3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
5 Bedroom
$
60.27
$
62.08
$
63.94
$
65.86
$
67.84
$
69.88
6 Bedroom
$
68.88
$
70.95
$
73.08
$
75.27
$
77.53
$
79.86
7 Bedroom
$
77.49
$
79.81
$
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments, and
Condominiums
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
Mobile Homes
Any Size
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
Non -Residential (1)
Per SSU
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
Notes:
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Wastewater Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Jul. 2013
Jul. 2014
Jul. 2015
Jul. 2016
Jul. 2017
Jul. 2018
Rate Increase -->
3.0%
3.0%
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$ 23.52
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
1" meter
$
38.83
$
39.99
$
41.19
$
42.43
$
43.70
1 1/2" meter
$
75.03
$
77.28
$
79.60
$
81.99
$
84.45
2" meter
$
118.63
$
122.19
$
125.86
$
129.64
$
133.53
3" meter
$
220.45
$
227.06
$
233.87
$
240.89
$
248.12
4" meter
$
365.88
$
376.86
$
388.17
$
399.82
$
411.81
6" meter
$
729.12
$
750.99
$
773.52
$
796.73
$
820.63
8" meter
$
1,165.18
$
1,200.14
$
1,236.14
$
1,273.22
$
1,311.42
Usage Rates ($/CCF)
Single Family (2)
$ 2.68
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Multi -Family (2)
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Non -Residential (2) (3)
Low Strength
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Medium Strength
$
3.45
$
3.55
$
3.66
$
3.77
$
3.88
High Strength
$
4.49
$
4.62
$
4.76
$
4.90
$
5.05
Industrial (4)
Flow (per MG annually)
$ 3,487.41
$
3,592.03
$
3,699.79
$
3,810.78
$
3,925.10
$
4,042.85
BOD (per 1,000 lbs annually)
$ 575.51
$
592.78
$
610.56
$
628.88
$
647.75
$
667.18
SS (per 1,000 lbs annually)
$ 359.85
$
370.65
$
381.77
$
393.22
$
405.02
$
417.17
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
%RMWIL 2/18/2014
UNW14nm Em"
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE April 1, 2014 TO March 31, 2015
Commercial Compactor Rates
Service
1X Week
2X Week
3X Week
4X Week
SX Week
2 Cubic Yard Compactor
$290.35
$580.70
$871.05
$1,161.40
$1,451.75
3 Cubic Yard Compactor
$358.76
$717.53
$1,076.29
$1,435.05
$1,793.81
4 Cubic Yard Compactor
$427.73
$855.45
$1,283.18
$1,710.90
$2,138.63
RESOLUTION NO. 2014-75
A RESOLUTION OF THE LODI CITY COUNCIL SETTING FUTURE
WATER, WASTEWATER, AND SOLID WASTE 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
and provides solid waste disposal service through a Franchise Agreement with USA
Waste of California, Inc. (Waste Management);
2. The City charges customers of the water and wastewater utilities a charge to fund the on-
going operation and maintenance of the water supply and wastewater disposal service;
Pursuant to Lodi Municipal Code Section 13.16.110 (Ordinance No. 1709), the schedule
of rates for solid waste collection shall be established and adopted by the City Council
from time to time by Resolution;
4. Waste Management has requested increases to the current solid waste disposal rates for
inflation and increased disposal fees as permitted under its Franchise Agreement;
5. On October 15, 2013, November 6, 2013, December 18, 2013, and March 5, 2014,
Council received advisory water, wastewater, and solid waste rates for residential,
commercial, and industrial customers, as the City transitions to a metered water system
to comply with State law;
6. Staff recommends adopting future adjustments with limits to usage -based and flat water
and wastewater rates for residential, multi -family, and non-residential customers as
presented in Exhibit A to become effective upon City Council approval of rate increase
resolutions at a future date;
7. Staff recommends approval of the Property Owner Meter Charge Schedule for water
meters, as presented in Exhibit B;
8. Staff recommends approval of the Waste Management Commercial Compactor Rate
schedule, as presented in Exhibit C;
9. 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;
10. 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;
11. 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;
12. 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;
13. On May 7, 2014, 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;
14. Written protests against the proposed usage -based and flat water and wastewater rates
and solid waste rates for residential, commercial, and industrial customers were not
presented by a majority of the property owners and water, wastewater, and solid waste
utility customers; and
15. The proposed usage -based and flat water and wastewater rates and solid waste 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 of Lodi as follows:
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Levy of Charges. Pursuant to Sections 13.08.010, 13.12.240, and 13.16.110 of
the Lodi Municipal Code, the usage -based and flat water and wastewater and solid waste rates for
residential, commercial, and industrial customers; the property owner meter charge schedule for water
meters; and the Waste Management Commercial Compactor rate schedule, as attached hereto as
Exhibits A, B, and C are hereby approved.
Section 3. Future Adjustments. As provided by Government Code Section 53756, the
future adjustments shown in Exhibit A may be adopted annually for a period of five years by resolution
beginning May 8, 2014 through December 31, 2018 for water, wastewater, and solid waste rates, with
Council approval following a public hearing, in an amount not to exceed the smaller of the limits stated in
Exhibit A or the percentage change in the Engineering News Record (ENR) Twenty Cities Annual
Average Index for water and wastewater or other index as approved by the City Council by resolution.
For solid waste rates, the annual adjustment will not exceed either (a) 80 percent of the annual change in
the Consumer Price Index for all Urban Consumers for San Francisco -Oakland -San Jose, California area
(CPI), All Items (1982 — 84 = 100) published by the Bureau of Labor Statistics, plus an adjustment for
extraordinary increases in landfill fees, fuel and energy costs, and changes in law up to 100 percent of the
annual change in the CPI, or (b) 100 percent of the annual change in the CPI without those other
adjustments but with a certification that Waste Management's costs had increased by more than 100
percent of the change in the CPI. 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: May 7, 2014
I hereby certify that Resolution No. 2014-75 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held May 7, 2014, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and Mayor Katzakian
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
NDI JO -OLSON
City erk
2014-75
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Exhibit B
Meter Charge Schedule
Meter
Size
Price
Based
Cost x 1.55
3/
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1
$350
1 'h
$780
2
$970
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$1,980
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$3,570
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1 $11,520
KAWP\UTILITY RATES\W WM2014 W -WW Rate Increase\Prop218\ResolutionExB.doc
Exhibit C
2/18/2014
wain MMUWAOMMEWr
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE April 1, 2014 TO March 31, 2015
Commercial Com
actor Rates
Service
1X Week
2X Week
3X Week
4X Week
5X Week
2 Cubic Yard Compactor
$290.35
$580.70
$871.05
$1,161.40
$1,451.75
3 Cubic Yard Compactor
$358.76
$717.53
$1,076.29
$1,435.05
$1,793.81
4 Cubic Yard Compactor
$427.73
$855.45
$1,283.18
$1,710.90
$2,138.63
The City of Lodi
Public Works
Engineering
t°or
Mr a. •
■ ■ /+
ry 4L" t�
..R1�
T�1
1
Proposition 218 Protest-Flearing
Water, Wastewater, Solid Waste
Agenda Item G-1
May 7, 2014
4
Topics
1. Property owner meter charge schedule
2. Vacant residential water and wastewater rate
3. Water rate structural changes
4. Five year financial plan
5. Water and wastewater capital programs
6. Solid waste compactor rate and annual CPI
adjustment
N
1. Proposition 218 protest hearing -
not arate increase
2. Water and wastewater future rate
increases capped at 3% ENR
3. Solid waste future rate increases
capped at 100% CPI
4. All future rate increases subject
to Council approval
4
i4m Vacant Residential Rate
Water and wastewater customers
without a metered service
Monthly base charge for meter size
Over time the monthly base charge
will reduce to approximately 30% of
total revenue (currently 45%)
4
ift Water Rate Structural Changes
• Revenue neutral and 3 -year transition
• Residential - monthly service charge and
3 -tier usage rates reduce
• Non-residential and multi -family - monthly
service charge and single -tier usage rate
increase
2. City of Lodi
3. Cottage Bakery
4. General Mills
5. Lodi Unified
6. Lodi Memorial
7. Lustre Cal
8. Pacific Coast Producers
9. Scientific Specialties
10. Target
11. Holiday Retirement
12. Walmart
13. Safeway
14. Miller Packing
15. Lodi Card Room
16. Archer Daniels Midland
17. Armorstruxx
18. Costco
19. Cepheid
4
�2 Five Year Financial Plan
1. Assumptions checked and reconfirmed
2. Annual adjustments capped at 3%
3. First year rate adjustment 2.5%
compared to 2.6% ENR increase
4. Cash reserves as a percent of r
are lowest in FY 17/18 (15% in
and 24°/a in Wastewater)
evenues
Water
5. Financial plan strategies presentation
July 16, 2014
Water Capital Program
Water Meters and Replacements
Well Capital Maintenance
Financial System Replacement
$ 23.5 million/4.5 years
$2.0 million/4.5 years
$0.53 million/2 years
Wastewater Capital Program
Wastewater System Rehabilitation
White Slough Capital Maintenance
White Slough Irrigation Improvements
Storm NPDES Permit Improvements
Financial System Replacement
$4.5 million/4.5 years
$8.6 million/4.5 years
$ 4.2 million (2015-18)
$2.5 million/2.5 years
$0.53 million/2 years
Service
Solid Waste Compactor Rates
1 X Week 2X Week 3X Week 4X Week 5X Week
2 Cubic Yard Compactor $290.35 $580.70 $871.05 $1,161.40$1,451.75
3 Cubic Yard Compactor $358.76 $717.53 $17076.29$1,435.05$17793.81
4 Cubic Yard Compactor $427.73 $855.45 $17283.18$1,710.90$27138.63
Option A — 80 % of CPI plus extraordinary increases in
landfill fees, fuel and energy
Option 6 — 100 % of CPI with certification that
operations costs increased by more than 100 % of CPI
Questions
CITY CLERK'S CERTIFICATE
RE: WRITTEN PROTESTS
PROPOSED FUTURE WATER, WASTEWATER, AND SOLID WASTE RATES
FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
I, RANDI 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 May 7, 2014, 1 tabulated the
written protests and certify the result of that tabulation to be as follows:
TOTAL NUMBER OF PROPERTIES: 47,216
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: 1,345
to the proposed increase (2.85%)
make this certification on May 14, 2014
y
RAMN40HL
CITY CLERK
N:\Administration\CLERK\Election\i'rop_218\Certification_Results_FutureRates_2014.doc
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 ADOPTING RESOLUTION
SETTING FUTURE WATER, WASTEWATER, AND SOLID WASTE
RATE SCHEDULES PURSUANT TO PROPOSITION 218 FOR
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
PUBLISH DATE: SATURDAY, MARCH 15, 2014
SATURDAY, MARCH 22, 2014
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO:
LNS ACCT. #0510052
DATED: THURSDAY, MARCH 6, 2014
ORDERED BY: RANDI JOHL-OLSON
CITY CLERK
NIFER L' ROBISON- CMC
SISTANT'CITY CLERK
RANDI JOHL-OLSON, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
MARIA DITMORE
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Faxed to the Sentinel at 369-1084 at; (time). on (date) (pages)
LNS. Phoned to confirm receipt of all pages at (time) M[2 JMR (initials)
fonnAadvins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING
FUTURE WATER, WASTEWATER, AND SOLID WASTE RATE SCHEDULES
PURSUANT TO PROPOSITION 218 FOR RESIDENTIAL, COMMERCIAL, AND
INDUSTRIAL CUSTOMERS
On Thursday, March 6, 2014, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider adopting resolution setting future water,
wastewater, and solid waste rate schedules pursuant to Proposition 218 for residential,
commercial, and industrial customers (attached and marked as Exhibit A) was posted at
the following locations:
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
I declare under penalty of perjury that the foregoing is true and correct.
Executed on March 6, 2014, at Lodi, California.
1=121111
1"
N:\Administration\CLERK\Forms\DECPOSTPW.DOC
RANDI JOHL-OLSON
CITY CLERK
MARIA DITMORE
ADMINISTRATIVE CLERK
Proposition 218 Notification and Protest Hearing Process
Summary:
The Lodi City Council will consider proposed future water, wastewater and contracted solid
waste rate increases at a public hearing at 7:00 p.m., Wednesday, May 7, 2014, at the Carnegie
Forum, 305 West Pine Street, Lodi. A majority protest would stop the proposed future increases.
If you wish to protest the proposed increases written protests may be made in person at the
hearing or delivered to:
City of Lodi
Attention: City Clerk
221 West Pine Street
Post Office Box 3006
Lodi, California 95241-1910
If you already filed a protest prior to the continuance of the December 18, 2013 hearing on
this Notice, your prior protest will be counted.
Explanation of Protest Process
Proposition 218 requires that the City provide a notice of the proposed future rate schedule to all
property owners forty-five (45) days prior to holding a public hearing. If a majority of the
property owners or renters who pay the utility bill file oppositions to the increase, the increase
will not take effect. A protest must contain a description of the property owned sufficient to
identify the property. The address or assessor's parcel number is shown on this mailing.
If the name on the written protest is not shown on the last equalized assessment roll of San
Joaquin County as the owner of the property or on the utility account, the signer of the protest
must also submit written evidence of ownership or rentership and utility bill responsibility.
At the public hearing, Council shall hear all protests and tabulate the ballots. One written protest
per parcel, filed by the owner or tenant (paying the utility bill) of the parcel shall be counted in
calculating a majority protest to a proposed new fee or charge subject to the requirements of
Section 6 of Article XIII D of the California Constitution. If the votes conflict, the City will
count the no vote.
Explanation of Proposed Future Increases:
City Staff is requesting that the City Council pre -authorize inflationary based adjustments in an
amount up to the lesser of three percent (3%) or the actual amount of inflation for the next five
years to pay for anticipated inflationary based cost increases. Water rates will be increased by up
to their applicable index each January 1, from 2015 through 2019 and wastewater rates each July
1, from 2014 through 2019.
In addition staff is requesting that Council make a small adjustment to rates to more equitably
distribute costs among its various classes of rate payers. Currently, metered single family
residential customers pay for water on a tiered system. The more a customer uses, the more they
pay per gallon. However, multi -family (condominiums/duplexes), commercial and industrial
customers pay for all their water at the first tier rate. This rate restructuring would effectively
lower costs for single family metered customers and increase rates for multi -family, commercial
and industrial customers to achieve better equity between these customer classes. Net rate
revenues will remain unchanged.
The City of Lodi proposes to increase all water and wastewater rates by an amount up to the
percentage increase in the annual average of the Engineering News Record (20 cities average)
Index ("ENR"), as of September 30 (water) and March 31 (wastewater) of each year from 2014
through 2018. The City of Lodi also proposes to increase contracted solid waste charges by the
annual change in the Consumer Price Index for All Urban Consumers for San Francisco -San Jose
California Area All Items (1982-84=100) published by the Bureau of Labor Statistics ("CPI") as of
December 31 of each year from December 31, 2014 through December 31, 2018. The water and
wastewater increases shall not exceed three percent (3%) per year. The ENR and CPI based
increases will be implemented as needed to pay for inflation -based increased costs of providing
water, wastewater and contracted solid waste services.
The City also proposes to institute new rates for installation of meters over % of an inch as set
forth in the attached rate table entitled Exhibit A Meter Charge Schedule; establish a new vacant
unit rate as set forth in the attached rate table entitled Exhibit B Vacant Unit Rate; approve new
flat rate water and wastewater rates as set forth in the attached rate tables entitled Exhibit C
Current and Proposed Flat Water Rates and Flat Wastewater Rates; and restructure rates for
single-family residential, multi -family and non residential as further described in the attached
rate table entitled Exhibit D Current and Proposed Usage Based Water Rates and Usage Based
Wastewater Rates. The current commercial compactor rates for solid waste are shown in Exhibit
E and will be adjusted for CPI changes as provided in the next paragraph. The rate restructuring,
vacant unit rate and meter installation rate for meters exceeding 3/4 inch will take place on
May 8, 2014.
Basis of Proposed Rate Calculation
The new ENR and CPI based rates will be calculated by increasing the then existing rate in each
of five years starting in 2014 by the prior year's increase in the ENR or CPI but not to exceed 3
percent for water and wastewater. Staff's recommended rate for the meter installation over 3/4 of
an inch is calculated as the City's actual contracted cost to purchase the meter plus 55 percent to
cover a portion of the installation cost and is presented in column 2 of the Exhibit A Meter
Charge Schedule. The vacant rate is calculated as the monthly base charge for water or
wastewater. The rate restructuring is calculated by increasing the single tier for multi -family and
non-residential by the weighted average of the multiple tier rate and decreasing all of the single-
family rates by the exact amount of the revenue that the increase to multi -family and non-
residential is projected to generate.
Conclusion:
If you have any questions about this notice, please call the Public Works Department at (209)
333-6706 between 7:30 a.m. and 5:30 p.m., Monday through Thursday, and between 8:00 a.m.
and 5:00 p.m. on Friday. City Hall is closed every other Friday.
RANDI JOHL-OLSON, City Clerk
City of Lodi
Notificaci6n de Proposici6n 218 y proceso de audiencia de protesta
Resumen:
El Consejo de la ciudad de Lodi considerara los incrementos propuestos en las tarifas de agua,
aguas residuales y desechos s6lidos contratados en una audiencia publica a las 7 PM, el miercoles
7 de mayo de 2014, en el Carnegie Forum, en el 305 West Pine Street, Lodi. Una protesta
mayoritaria detendran los incrementos futuros propuestos. Si desea protestar por los incrementos
se pueden hacer protestas por escrito en persona en la audiencia o las puede entregar en:
Ciudad de Lodi
Atenci6n: City Clerk
221 West Pine Street
Post Office Box 3006
Lodi, California 95241-1910
Si ya present6 una protesta antes del aplazamiento de la audiencia del 18 de diciembre de
2013 por esta Notificaci6n, su protesta anterior sera contada.
Explicaci6n del proceso de protesta
La Proposici6n 218 requiere que la Ciudad proporcione una notificaci6n del programa de tarifas
futuras propuestas a todos los duenos de propiedad cuarenta y cinco (45) dias antes de Ilevar a
cabo la audiencia publica. Si la mayoria de los duenos de propiedad o renteros que pagan el
recibo de servicios presentan oposiciones por el incremento, este no entrara en vigor. Una
protesta debe contener una descripci6n de la propiedad suficiente para identificar la misma. La
direcci6n o numero de parcela del valuador se muestra en este correo.
Si no se muestra el nombre en la protesta por escrito en la Ultima lista de tasaci6n.ajustada del
Condado de San Joaquin como dueno de la propiedad o en la cuenta de servicios, el firmante de
la propuesta tambidn debe presentar evidencia por escrito de dicha propiedad o arrendamiento y
su responsabilidad por el recibo de servicios.
En la audiencia publica, el Consejo debera escuchar todas las propuestas y tabular los votos. Se
debera contar una protesta por escrito por parcela, presentada por el propietario o inquilino
(pagando el recibo de servicios) de la parcela para el calculo de una protesta mayoritaria por un
cargo o tarifa nueva propuesta sujeto a los requerimientos de la Secci6n 6 del Articulo XIII D de
la Constituci6n de California. Si hay conflicto en los votos, la Ciudad to contara sin voto.
Explicaci6n de los incrementos futuros propuestos:
El personal de la Ciudad esta solicitando que el Consejo de la ciudad pre-autorice los ajustes
basados en la inflaci6n por una cantidad que sea la menor de tres por Ciento (3%) o la cantidad
real de la inflaci6n por los siguientes cinco anos para pagar los incrementos de costos anticipados
basados en la inflaci6n. Las tarifas de agua se incrementaran hasta su indice aplicable cada 1 de
enero, de 2015 a 2019 y las tarifas por aguas residuales cada 1 de julio, de 2014 al 2019.
Ademas, el personal solicita que el Consejo haga pequenos ajustes a las tarifas para distribuir los
costos mas equitativamente entre sus diversas clases de pagadores de tarifa. Actualmente, los
clientes residenciales unifamiliares con medidor pagan por agua con un sistema de niveles. Entre
mas usa un cliente, mas paga por gal6n. Sin embargo, los clientes de multifamiliares
(condominios/duplex), comerciales e industriales pagan por toda su agua con tarifa de primer
nivel. Esta reestructuraci6n de tarifas disminuira efectivamente los costos para los clientes
unifamiliares con medidor e incrementara las tarifas para clientes multifamiliares, comerciales e
industriales para lograr una mayor equidad entre las clases de clientes. Los ingresos netos por
tarifas permaneceran sin cambio.
La Ciudad de Lodi propone incrementar todas las tarifas de agua y aguas residuales por una
cantidad de hasta el porcentaje de incremento en el promedio anual del Indice del Engineering New
Record ("ENR") (promedio de 20 ciudades), al 30 de septiembre (agua) y 31 de marzo (aguas
residuales) para cada ano del 2014 a12018. La Ciudad de Lodi tambidn propone incrementar los
cargos por desechos s6lidos contratados por el cambio anual en el Indice de precios al consumidor
para todos los consumidores urbanos del area de San Francisco -San Josd California, todos los
conceptos (1982-84=100) publicados por la Oficina de Estadisticas Laborales ("IPC") al 31 de
diciembre de cada ano del 31 de diciembre de 2014 al 31 de diciembre de 2018. Los incrementos en
agua y aguas residuales no excedera del tres por ciento (3%) por ano. Los incrementos basados en
ENR e IPC seran implementados segun sea necesario para pagar los costos incrementados basados
en la inflaci6n para proporcionar servicios de agua, aguas residuales y desechos s6lidos contraidos.
La Ciudad tambidn propone instituir nuevas tarifas para la instalaci6n de medidores de mas de 3/4
de pulgada como se establece en la tabla de tarifas adjunta titulada como Anexo A Programa de
cargos por medidor; establecer una nueva tarifa de unidad vacante como se establece en la tabla
de tarifas adjunta titulada como Anexo B Tarifa de unidad vacante; aprobar una nueva tarifa fija
para agua y aguas residuales como se establece en las tablas de tarifas adjuntas tituladas Anexo C
Tarifas de agua fijas y tarifas de aguas residuales fijas actuales y propuestas; y tarifas de
reestructuraci6n para unifamiliares residenciales, multifamiliares y no residenciales como se
describe en la tabla de tarifas adjunta titulada Anexo D Tarifas de agua y tarifas de aguas
residuales basadas en use actuales y propuestas. Las tarifas de compactador comercial actuales se
muestran en el Anexo E y se ajustaran segun los campos en el IPC come, se indica en el siguiente
parrafo. La tarifa de reestructuraci6n, la tarifa de unidad vacante y la tarifa de instalaci6n de
medidor para medidores que exceden 3/4 de pulgada se aplicaran el 8 de mayo de 2014.
Bases para el calculo de la tarifa propuesta
Las nuevas tarifas basadas en el ENR y el IPC seran calculadas al incrementar la tarifa entonces
existente en cada uno de los cinco anos a partir de 2014 por el incremento del ano anterior en el
ENR o el IPC sin exceder el 3 por ciento para agua y aguas residuales. La tarifa recomendada
por el personal para la instalaci6n de medidor de mds de 3/4 de pulgada se calcula segun el costo
contratado actual de la Ciudad para comprar el medidor mas 55 por ciento para cubrir una
porci6n de la instalaci6n y se presenta en la columna 2 del Anexo A Programa de cargos por
medidor. La tarifa de vacantes se calcula en un cargo mensual por agua y aguas residuales. La
tarifa de reestructuraci6n se calcula al incrementar el nivel unico para multifamiliar y no
residencial segun el promedio ponderado de tarifas de multiple nivel y disminuyendo todas las
tarifas de unifamiliares por la cantidad exacta de ingresos que el incremento en multifamiliares y
no residenciales se proyecta que genre.
Conclusion:
Si tiene alguna pregunta sobre esta notificaci6n, llamar al Departamento de Obras Publicas al
(209) 333-6706 entre 7:30 AM y 5:30 PM, de lunes a jueves y entre las 8:00 AM y las 5:00 PM
los viernes. El Ayuntamiento cierra cada dos viernes.
RANDI JOHL-OLSON, Secretario del ayuntamiento
Ciudad de Lodi
CITY COUNCIL CITY OF L O D I
PHIL KATZAKIAN, Mayor
LARRY D.HANSEN,
PUBLIC WORKS DEPARTMENT
Mayor Pro Tempore
CITY HALL, 221 WEST PINE STREET / P.O. BOX 3006
BOB JOHNSON
LODI, CALIFORNIA 95241-1910
JOANNE L. MOLINCE
TELEPHONE (209) 333-6706 / FAX (209) 333-6710
ALAN NAKANISHI
EMAIL pwdept@lodi.gov
http://www.lodi.gov
February 1, 2014
SUBJECT: Proposed Schedule of Utility Rate Increases
KONRADT BARTLAM,
City Manager
RANDI JOHL-OLSON,
City Clerk
D. STEPHEN SCHWABAUER,
City Attorney
F. WALLY SANDELIN,
Public Works Director
This letter to our utility customers addresses some commonly questioned aspects of the
Proposition 218 process relative to forecasted utility rate increases. One, the City's
Proposition 218 notices will not result in any increase in utility rates. The Proposition 218
notice is a notice of proposed rate schedules and does not constitute a utility rate
increase. It the case of water and wastewater rates, it sets a maximum limit of 3% for
future rate increases, even if the inflationary index exceeds 3%. In the case of refuse
rates, it sets a maximum limit equal to the change in the Consumer Price Index (CPI).
Two, the City has acted transparently by regularly presenting at numerous public
meetings the financial models for the water and wastewater utilities that contain specific
information on the forecasted increases in costs for personnel, utilities, materials,
supplies, and debt service and lists specific system improvement projects. As recently as
October 15, 2013, this information was presented at the Shirtsleeve meeting and is
available online at the City Council Agendas and Minutes site.
Three, the financial models present the best information available that support the notion
of continued modest increases in rates. Again, the Council will not be voting on April 16
to increase rates by 3% for each of the next five years. Each year, actual numbers from
the prior year and budget numbers for the next year provide the facts to Council so a
decision can be made as to whether there should be no rate increase or a modest
increase.
Four, the objective of the proposed rate schedules is to make it possible to offset
inflationary increases in water and wastewater operating costs should that become
necessary. The rate changes are not intended to fund capital projects. In the past,
maximum permitted rate increases have not been implemented and, in fact, the average
annual water rate increase has been 1.2% over the past six years.
Five, the proposed rate schedules will not be used to pay for infrastructure required to
serve the demands presented by new development. The development impact fee
program requires new development to reimburse the City for past and future investments
in water, wastewater, streets, police, fire and other infrastructure. In fact, if new
development exceeds that forecasted in the financial models, this could partially offset
recommended inflationary increases.
Lastly, significant system improvements are planned that will, in the long term,
significantly reduce expensive maintenance costs and evenly spread utility costs (rates)
amongst our customers. These system improvements include the water and wastewater
replacement program, water meter installation program, old water meter retrofit program,
and system -wide well maintenance. And there are administration costs to run the utilities
with much of those costs related to meeting State requirements for the operation of the
wastewater treatment plant and the recently -completed water treatment plant.
Sincerely,
F. Wally Sandelin
Public Works Director
FWS/pmf
CITY COUNCIL
PHIL KATZAKIAN, Mayor
LARRY D. HANSEN,
Mayor Pro Tempore
BOBJOHNSON
JOANNE L. MOLINCE
ALAN NAKANISHI
CITY OF LODI
PUBLIC WORKS DEPARTMENT
CITY HALL, 221 WEST PINE STREET / P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
TELEPHONE (209) 333-6706 / FAX (209) 333-6710
EMAIL pwdept@lodi.gov
http://www.lodi.gov
1 de febrero de 2014
TEMA: Programa propuesto para incrementos en tarifas de servicios
KONRADT BARTLAM,
City Manager
RANDI JOHL-OLSON,
City Clerk
D. STEPHEN SCHWABAUER,
City Attorney
F. WALLY SANDELIN,
Public Works Director
Esta carta para nuestros clientes de servicios trata algunos de los aspectos comunmente
cuestionados sobre el proceso de la Proposici6n 218 relativo a la predicci6n de
incrementos en las tarifas de servicios. Uno, las notificaciones de la Proposici6n 218 de
la ciudad no resultaran en ningun incremento de las tarifas de servicios. La notificaci6n
de la Proposici6n 218 es una notificaci6n sobre el programa de tarifas propuesta y no
constituye un incremento en las tarifas de servicios. En el caso de las tarifas por agua y
aguas residuales, se tiene establecido un limite maximo de 3% para futuros incrementos
en tarifas, incluso si el indice inflacionario excede el 3%. En el caso de tarifas de
rechazo, se establece un limite maximo igual al cambio en el indice de precios al
consumidor (IPC).
Dos, la Ciudad ha actuado de manera transparente al presentar regularmente en
numerosas reuniones p6blicas los modelos financieros de los servicios de agua y aguas
residuales los cuales contienen informaci6n especifica sobe los incrementos
pronosticados en cuanto a los costos de personal, servicios, materiales, suministros y
servicios de deuda y enumera proyectos especificos de mejora en el sistema. Tan
reciente como el 15 de octubre de 2013, esta informaci6n fue presentada en la reuni6n
de Shirtsleeve y tambien esta disponible en linea en el sitio de Agenda y minutas del
Consejo municipal.
Tres, los modelos financieros presentan la mejor informaci6n disponible que apoya la
noci6n de incrementos modestos continuos en las tarifas. De nuevo, el Consejo no
votary el 16 de abril para el incremento de las tarifas en un 3% para cada uno de los
siguientes cinco anos. Cada ano, los numeros reales del ano anterior y los numeros del
presupuesto para el siguiente ano proporcionan los hechos para el Consejo de manera
que se pueda tomar una decision respecto a si no debe haber incremento en las tarifas o
si debe haber un incremento modesto.
EI objetivo del programa de tarifas propuesto es el de poder compensar los incrementos
inflacionarios en los costos de operaci6n del agua y aguas residuales de ser estos
necesarios. Los cambios en las tarifas no tienen el prop6sito de generar fondos para
proyectos de inversi6n. En el pasado, los incrementos maximos permitidos a las tarifas
no fueron implementado y, de hecho, la tarifa promedio anual por agua ha incrementado
1.2$ durante los ultimos seis anos.
Cinco, el programa de tarifas propuesto no sera usado para pagar por la infraestructura
requerida para dar servicio a la demanda requerida por el nuevo desarrollo. EI programa
de cuota de impacto del desarrollo requiere que el nuevo desarrollo reembolse a la
Ciudad las inversion es pasadas y futuras en agua, aguas residuales, calles, policfa,
incendio y demas infraestructuras. De hecho, si el nuevo desarrollo excede dicho
pronostico en los modelos financieros, esto podrfa compensar parcialmente los
incrementos inflacionarios recomendados.
Por ultimo, se planean significativas mejoras en el sistema que, a largo plazo, reduciran
significativamente los caros costos de mantenimiento y distribuiran de manera equitativa
los costos (tarifas) por servicios entre nuestros clientes. Estas mejoras en el sistema
incluyen programa de reemplazo de agua y aguas residuales, programa de instalacion
de medidores de agua, programa de reacondicionamiento de medidores antiguos de
agua y mantenimiento de todo el sistema. Y hay costos administrativos para hacer
funcionar los servicios con muchos de esos costos relacionados a cumplir con los
requerimientos estatales por operacibn de la planta de tratamiento de aguas residuales y
la planta de tratamiento de agua recientemente terminada.
Cordialmente,
F. Wally Sandelin
Director de obras publicas
FWS/pmf
Exhibit A
Meter Charge Schedule
Meter
Recommended
Capacity
Installed
Lodi Fee
Santa
No
Size
Price
Based
Cost
Schedule
Clara
Charge
Based
(Contractor
Fee
Cost x 1.55
Prices)
Schedule
%
$300
$300
$940
$400
$370
$0
1
$350
$500
$1,420
$480
$365
$0
1 �/
$780
$1,000
$3,810
$745
$1,565
$0
2
$970
$1,600
$5,720
$930
$1,730
$0
3
$1,980
$3,000
$5,950
N/A
$2,065
$0
4
$3,570
$5,000
N/A
N/A
$4,130
$0
6
$6,760 1
$10,000
N/A
N/A
$6,750
$0
8
$11,520
$16,000
N/A
N/A
$10,670
$0
Exhibit B
Vacant Unit Rate
• Flat rate residential customers — monthly service charge for a % inch meter
• Metered residential customers — no vacant utility rate
• Master metered multi -family — no vacant utility rate
• Metered multi -family unit — no vacant utility rate
• Monthly service charge will reduce with conservation pricing
Anexo A
Programa de cobro de medidor
Tamano
Precio base
Capacidad
Costo
Programa
Programa
Sin cargo
de
recomendado
basada
instalado
de tarifas
de tarifas
medidor
(Costo x 1.55)
(Precios de
de Lodi
de Santa
contratista)
Clara
%
$300
$300
$940
$400
$370
$0
1
$350
$500
$1,420
$480
$365
$0
1 Y2
$780
$1,000
$3,810
$745
$1,565
$0
2
$970
$1,600
$5,720
$930
$1,730
$0
3
$1,980
$3,000
$5,950
N/A
$2,065
$0
4
$3,570
$5,000
N/A
N/A
$4,130
$0
6
$6,760
$10,000
N/A
N/A
$6,750
$0
8
$11,520
$16,000
N/A
N/A
$10,670
$0
G - •
Tarifa de unidad vacante
• Tarifa fija clientes residenciales — cargo mensual por servicio por un
medidor de 3/ de pulgada
• Clientes residenciales con medidor — sin tarifa de servicio vacante
• Multifamiliar con medidor principal — sin tarifa de servicio vacante
• Unidad multifamiliar con medidor — sin tarifa de servicio vacante
• EI cargo mensual de servicio se reducira con precios de conservacion
10
Exhibit C
City of Lodi
_a Iwr_s..- 0-4-
NOteS:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
Anexo C
Ciudad de Lodi
at- Cw{.MAC'..♦ wrAMIIA£*SIC
%,UFFUTIL CITU V
V ViW ' '•^
'-
Tarifa futura maxlma
Future Rate Collin
Actual
Propuesta
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Eno. 2014)
(Jan.2013)
(Jan. 2014).
,(Jan. 2015) (Jan..2016) (Jan. 2017)
Jan. 2018).,
(Jan. 2019)
Rate Increase -a
2.5%
3.0%
3.0"%
3.0%
3.0%
3.0%
3.0%
TARIFAS WAS
FLAT RATES
Residential unifamiliar
Single Family Residential
$ 30.65
$
31.57
$ 32.52
$ 33.50
$ 34.51
$
35.55
1 Bedroom
$
$
29.90
35.91
$ 36.81
$
37.91
$ 39.05
$ 40.22
$ 41.43
$
42.67
2 Bedroom
$
43.04
$ 44.12
$
45.44
$ 46.80
$ 48.20
$ 49.65
$
51.14
3 Bedroom
4 Bedroom
$
51.72
$ 53.01
$
54.60
$ 56.24
$ 57.93
$ 59.67
$
61.46
5 Bedroom
$
62.03
$ 63.58
$
65.49
$ 67.45
$ 69.47
$ 71.55
$
73.70
6 Bedroom
$
74.44
$ 76.30
$
78.59
$ 80.95
$ 83.38
$ 85.88
$
88.46
Multi -Family (1)
$
25.67
$ 26.31
$
27.10
$ 27.91
$ 28.75
$ 29.61
$
30.50
1 Bedroom
2 Bedroom
$
30.79
$ 31.56
$
32.51
$ 33.49
$ 34.49
$ 35.52
$
36.59
3 Bedroom
$
36.94
$ 37.86
$
39.00
$ 40.17
$ 41.38
$ 42.62
$
43.90
4 Bedroom
$
44.32
$ 45.43
$
46.79
$ 48.19
$ 49.64
$ 51.13
$
52.66
Mobile Homes
$ 27.10
$ 27.91
26.31
$
27.10
$ 27.91
$ 28.75
$ 29.61
$
30.50
Any Size
$
25.67
$
+3.0%
+3.0%
Nan -Residential
Existing unmetered
Varies
+25%
+3.0%
+3 p%
+3.0%
+3.0%
+3.0%
NOteS:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
Anexo C
Ciudad de Lodi
at- Cw{.MAC'..♦ wrAMIIA£*SIC
NOWS:
(1) Multifamiliar incluye duplex, tres y catro juntas, departamentos y condominios.
11
Tarifa futura maxlma
Actual
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
(Eno. 2013)
(Eno. 2014)
,(Eno. 2015) (Eno. 2016
Eno, 2017)
Ene. 2018)
Ene. 2019).
Incremento de tarifa -->
2.5%
3.0%
3.0%
3.0%
3.0%6
3.0%
TARIFAS WAS
Residential unifamiliar
1 rec6mara
$ 29.90
$
30.65
:$ 31.57
$ 32.52
$ 33.50
$
34.51
$ 35.55
2 rec6maras
$ 35.91
$
36.81
$ 37.91
$ 39.05
$ 40.22
$
41.43
$ 42.67
3 recamaras
$ 43.04
$
44.12
$ 45.44
$ 46.80
$ 48.20
$
49.65
$ 51.14
4 recamaras
$ 51.72
$
53.01
$ 54.60
$ 56.24
$ 57.93
$
59.67
$ 61.46
5 recamaras
$ 62.03
$
63.58
.$ 65.49
$ 67.45
$ 69.47
$
71.55
$ 73.70
6 recamaras
$ 74.44
$
76.30
.$ 78.59
$ 80.95
$ 83.38
$
85.88
$ 88.46
Mu►tifamiliar (1)
1 recamara
$ 25.67
$
26.31
$ 27.10
$ 27,91
$ 28.75
$
29.61
$ 30.50
2 recdmaras
$ 30.79
$
31.56
$ 32.51
$ 33.49
$ 34.49
$
35.52
$ 36.59
3 recamaras
$ 36.94
$
37.86
$ 39.00
$ 40.17
$ 41.38
$
42.62
$ 43.90
4 recamaras
$ 44.32
$
45.43
$ 46.79
$ 48.19
$ 49.64
$
51.13
$ 52.66
Cases mbviles
Cualquier tamanno
$ 25.67
$
26.31
$ 27.10
$ 27.91
$ 28.75
$
29.61
$ 30.50
No residential
Existentes sin medido
Varia
+2.5%
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
NOWS:
(1) Multifamiliar incluye duplex, tres y catro juntas, departamentos y condominios.
11
Exhlblt C
City of Lodi
Current and Proposed Flat VI
Future
(Jul. 2013) (Jul. 2014) taw- 4u•
Increase --> 3.0% 3.0%
FLAT RATES
$
29.07
$
29.94
37.63
$
Single Family Residential
$
39.92
47.04
$
48.45
$
1 Bedroom
$
25.83
$
26.60
$
27.40 $
2 Bedroom
$
34.44
$
35.47
$
36.53 $
3 Bedroom
$
43.05
$
44.34
$
45.67 $
4 Bedroom
$;
51.66
$
53.21
$
54.81 $
5 Bedroom
$
60.27
$
62.08
$
63.94 $
6 Bedroom
$
68.88
$
70.95
$
73.08 $
7 Bedroom
$
77.49
$
79.81
$
82.20 $
Duplexes, Triplexes, Fourplexes,
Aparlmerits,
and Condominiums
1 Bedroom
$
25.83
$
26.60
$
27.40 $
2 Bedroom
$
34.44
$
35A7
$
36.53 $
3 Bedroom
$
43.05
$
44.34
$
45.67 $
4 Bedroom
$
51.66
$
53.21
$
54.81 $
Mobile Homes
$
25.83
$
26.60
$
27.40 $
Any Size
67.84
$
69.88
5 recamaras
$68.88
Non -Residential (f)
70.95
$
73.08
$
75.27
$
Per SSU
$
34.44
$
35.47
$
36.53 $
2016) (Jul. 2017.) (Jul. 201
nai- 3.0% 3.0%
28.22
$
29.07
$
29.94
37.63
$
38.76
$
39.92
47.04
$
48.45
$
49.90
56.45
$
58.14
$
59.88
65.86
$
67.84
$
69.88
75.27
$
77.53
$
79.86
84.67
$
87.21
$
89.83
28.22
$
29.07
$
29.94
37.63
$
38.76
$
39.92
47.04
$
48.45
$
49.90
56.45
$
58.14
$
59.88
28.22
$
29,07
$
29.94
37.63
$
38.76
$
39.92
wastewater rates for schools are to be determined on the basis of 18 student per SSU.
Anexo C
Ciudad de Lodi
Tarifas de ague residuales fl as. actuales ro uestas
Tarifa futura maxima
Notas;
(1) Las tadfas fijas por aguas residuales propuestas para escuelas seran determinadas basandose en 18 estudiantes por S
12
(Ene.2013),
18)
(.Eno. 2014) (Ene.2015) (Eno. 2016) (En®.2017) (Ene.20
Incremento de tarifa -->
10%
3.0%
3.0%
3.0%
3.0%
TARIFAS FIJAS
Residencial unfamiliar
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
1 recamara
$
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
2 recamaras
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
3 recamaras
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59:88
4 recamaras
$
6027'
$
62.08
$
63.94
$
65.86
$
67.84
$
69.88
5 recamaras
$68.88
$
70.95
$
73.08
$
75.27
$
77.53
$
79.86
6 recamaras
79.81
$
82.20
$
84.67
$
87.21
$
89.83
7 recamaras
$
77.49
duplex, fres y catro juntas,
departamentos
condominios
$
29.07
$
29.94
1 recamara
$
25.83
$
26.60
$
$
27.40
36.53
$
$
28.22
37.63
$
38.76
$
39.92
2 recamaras
$
34.44
$
$
35.47
44.34
$
45.67
$
47.04
$
48.45
$
49.90
3 recamaras
$
$
43.05
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
4 recamaras
Cases mdviles
25.83
$
26.60
$
27.40
$
28.22
$
29'07
$
29'94
Cualquier tamafio
$
No residencial (1)
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
Por SSU
$
34.44
Notas;
(1) Las tadfas fijas por aguas residuales propuestas para escuelas seran determinadas basandose en 18 estudiantes por S
12
Exhibit D
City of Lodi
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
Anexo D
Ciudad de Lodi
rarnas Oe agua nasauaa nn uuuaaow..
t.urrenc anu rrupuaou vna o- _Fo .......--
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan.2013)
(Jan.
2014)
(Jan.
2014). (Jan. 2015) (Jan.2016) (Jan. 2017) (Jan.2018) (Jan.2019).
Rate Increase a
2.6%(2)
Actual
31
3.0%(4)
3.0%(4)
Propuesta
3.0%
Propuesta
3.0%
3.0%
(Eno. 2014)
Ene.2014
Eno. 2015) (Eno. 2016)...(E
no. 2017) (Eno. 2018) (Eno. 2019)
Incremento de tarifa -a
2.5% (2)
3
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
USAGE -BASED RATES
TARIFAS BASADAS EN UTILIZACI(5N
Cargo mensual por servicio
Monthly Service Charge
Unifamiliar
Medidor hasta 3/4"
$ 23.78
$
24.37
Single Family
Up to 314" meter
$ 23.78
$
24.37
$
23.26
$ 22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$ 38.60
$
39.57
$
37.38
$ 36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$ 75.42
$
77.31
$
72.45
$ 69.63
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$ 119.79
$
122.78
$
114.71
$ 109.84
$
101.52
$
104.57
$
107.71
$
110.94
Multi -Family and Non -Residential
(1)
$ 22.80
$
23.26
$ 22.80
$
21.65
$
22.30
$
22.97
$
23.66
Up to 3/4" meter
$ 23.78
$
24.37
$
$
37.38
$ 36.26
$
34.01
$
35.03
$
36.08
$
37.16
1" meter
$ 38.60
$ 60.24
$
$
39.57
61.75
$
62.08
$ 64.28
$
64.62
$
66.56
$
68.56
$
70.62
1 1/2" meter
2" meter
$ 75.27
$
77.15
$
64.29
$ 94.17
$
101.52
$
104.57
$
107.71
$
110.94
3" meter
$ 105.38
$
108.01
$
132,74
$ 162.18
$
187.65
$
193.28
$
199.08
$
205.05
4" meter
$ 135.51
$
138.90
$
193.14
$ 254.80
$
310.67
$
319.99
$
329.59
$
339.48
6" meter
$ 195.68
$
200.57
$
333,69
$ 480.82
$
617.94
$
636.48
$
655.57
$
675.24
8" meter
$ 255.91
$
262.31
$
494.23
$ 747.94
$
986.82
$
1,016.42
$
1,046.91
$
1,078.32
10" meter
$ 316.01
$
323.91
$
674.61
$ 1,056.08
$ 1,417.30
$:1,603.61
$
1,459.82
$
1,503.61
$
1,548.72
Usage Rates (VC09
Unifamiilar
Nivel 1 (0-10 CCF)
$ 0.92
$
0.94
Single Family
Tier 1 (0-10 CCF)
$ 0.92
$
0.94
$
0;94
$ 0,97
$
0.96
$
0.99
$
1;02
$
1.05
Tier 2 (11-50 CCF)
$ 1.38
$
1.41
$
1.35
$ 1,33
$
1.27
$
1.31
$
1.35
1.69
$
1.39
1.74
Tier 3 (>50 CCF)
$ 1.82
$
1.87
$
1.76
$ 1,70
$
1.59
$
1.64
$
$
Multi -Family and Non -Residential
(1)
$
1.14
$
1.17
$
1.21
1.14
$
1.17
$
1.21
$
1.25
All water usage
$ 0.92
$
0.94
$
1.00
$ 1.09
$
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
Anexo D
Ciudad de Lodi
Notas:
(1) Muitifamiliar incluye duplex, tres y catro juntas, departamentos, condominios y parques para casas m6viles.
(2) Este programa inciuye la indexaci6n propuesta dei 2.5 por clento, sin cambios on la estructura de tarifas.
(3) Este programa de tarifas es neutral en cuanto a ingresos eriativo a las tarifas por agua de enero de 2014 recien indexadas propuestas,
pero incluyen el inicio de los cambios a 3 anos propuestT para la estructura de tarifas.
(4) Estos programas de tarifas reflejan el segundo y tercer ano de una adopcion de estructura de tarifas a 3 anos, asi como el ajuste
maximo a la tarifa potencial debido al indexado ENR.
rarnas Oe agua nasauaa nn uuuaaow..
auwn,-
Tarifa futura m5xima
Actual
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
Eno. 2013)
(Eno. 2014)
Ene.2014
Eno. 2015) (Eno. 2016)...(E
no. 2017) (Eno. 2018) (Eno. 2019)
Incremento de tarifa -a
2.5% (2)
3
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
TARIFAS BASADAS EN UTILIZACI(5N
Cargo mensual por servicio
Unifamiliar
Medidor hasta 3/4"
$ 23.78
$
24.37
$
23.26
$ 22.80
$
21.65
$
22.30
$
22.97
$
23.66
Medidor de 1"
$ 38.60
$
39.57
$
37.38
$ 36.26
$
34,01
$
35.03
$
36.08
$
37.16
Medidor de 1 112"
$ 75.42
$
77.31
$
72.45
$ 69.63
$
64.62
$
66.56
$
68.56
$
70.62
Medidor de 2"
$ 119.79
$
122.78
$
114.71
$ 109.84
$
101.52
$
104.57
$
107.71
$
110.94
Muitifamiliar y no residenclal
(1)
24.37
$
23.26
$ 22.80
$
21.65
$
22.30
$
22.97
$
23.66
Medidor hasta 3/4"
$ 23.78
$
$
37.38
$ 36.26
$
34.01
$
35.03
$
36.08
$
37.16
Medidor de 1"
$ 38.60
$
$
39,57
61.75
$
62.08
$ 64.28
$
64.62
$
66.56
$
68.56
$
70.62
Medidor de 1 112"
Medidor de 2"
$ 60.24
$ 75.27
$
77.15
$
84.29
$ 94.17
$
101.52
$
104.57
$
107.71
$
110.94
Medidor de 3"
$ 105.38
$
108.01
$
132.74
$ 162.18
$
187.65
$
193.28
$
199.08
$
205.05
Medidor de 4"
$ 135.51
$
138.90
$
193.14
$ 254.80
$
310.67
$
319.99
$
329.59
$
339.48
Medidor de 6"
$ 195.68
$
200.57
$
333.69
$ 480.82
$
617.94
$
636.48
$,
655.57
$
675.24
Medidor de 8"
$ 255.91
$
262.31
$
494.23
$ 747.94
$
986.82
$
1,016.42
$:1,046.91
$
1,078.32
Medidor de 10"
$ 316.01
$
323.91
$
674.61
$ 1,056.08
$ 1,417.30
$
1,459.82
$:1,603.61
$
1,548.72
Tarifas de utilizaci6n ($/CCF)
Unifamiilar
Nivel 1 (0-10 CCF)
$ 0.92
$
0.94
$
0.94
$ 0.97
$
0.96
$
0.99
$
1.02
$
1.05
Nivel 2 (11-50 CCF
$ 1.38
$
1.41
$
1.35
$ 1.33
$
1.27
$
1.31
$
1.35
$
1.39
Nivel 3 (>50 CCF)
$ 1.82
$
1.87
$
1.76
$ 1.70
$
1.59
$
1.64
$
1.69
$
1.74
Multifamiliary no residencial (1)
1.09
$
1.14
$
1.17
$
1.21
$
1.25
Todo use de agua
$ 0.92
$
0.94
$
1.00
$
Notas:
(1) Muitifamiliar incluye duplex, tres y catro juntas, departamentos, condominios y parques para casas m6viles.
(2) Este programa inciuye la indexaci6n propuesta dei 2.5 por clento, sin cambios on la estructura de tarifas.
(3) Este programa de tarifas es neutral en cuanto a ingresos eriativo a las tarifas por agua de enero de 2014 recien indexadas propuestas,
pero incluyen el inicio de los cambios a 3 anos propuestT para la estructura de tarifas.
(4) Estos programas de tarifas reflejan el segundo y tercer ano de una adopcion de estructura de tarifas a 3 anos, asi como el ajuste
maximo a la tarifa potencial debido al indexado ENR.
Exhibit D
City of Lodi
Current and Proposed Usage -Based Wastewater Rates
I Future Rate Gi
(JuL.2013) (Ju1.2014) (Jul.2015) (Jul. 2016) (Jul.2017) (Jul.2018)
Rate Increase --> 3.0% 3.0% 3.0% 3.0% 3.0%
USAGE -BASED RATES
Carpo mensual poraervicto
Monthly Service Charge
Single Family (per DU) $ 23.52
$
24.23
$ 24.96
$
25.71
$
26.48
$
27.27
23.52
Multi -Family and Non -Residential (1)
$
24.23
$ 24.96
$
25.71
$
26.48
$
27.27
$
Up to 3/4" meter
$
38.83
$ 39.99
$
41.19
$
42.43
$
43.70
38.83
1" meter
$
75.03
$ 77.28
$
79.60
$
81.99
$
84.45
$ 77.28
1 1/2" meter
$
118.63
$ 122.19
$
125.86
$
129.64
$
133.53
$ 125.86
2" meter
$
220.45
$ 227.06
$
233.87
$
240.89
$
248.12
$
3" meter
$
365.88
$ 376.86
$
388.17
$
399.82
$
411.81
399.82
4" meter
$
729.12
$ 750.99
$
773.52
$
796.73
$
820.63
6" meter
8" meter
$ 1,165.18
$ 1,200.14
$ 1,236.14
$ 1,273.22
$ 1,311.42
Usage Rates ($/CCF)
$ 2.68
$
2.76
$ 2.84
$
2.93
$
3.02
$
3.11
Unifamilier (2)
Single Family (2)
$
2.76
$ 2.84
$
2.93
$
3.02
$
3.11
Multi -Family (2)
No residential (2) (3)
$
Non -Residential (2) (3)
$
2.76
$ 2.84
$
2.93
$
3.02
$
3.11
3.45
Low Strength
$
3.45
$ 3.55
$
3.66
$
3.77
$
3.88
$ 4.62
Medium Strength
$
4.49
$ 4.62
$
4.76
$
4.90
$
5.05
$ 3,925.10
High Strength
BOD (por 1,000 lbs enual) $
575.51
$
592.78
$ 810.58
$ 628.88
$
647.75
$
$
867.18
417,17
Industrial (4)
Flow (per MG annually) $ 3,487.41
$ 3,592.03
$ 3,699.79
$
3,810.78
$ 3,925.10
$ 4,042.85
405.02
BOD (per 1,000 lbs annualt $ 575.51
$
592.78
$ 610.56
$
628.88
$
647.75
$
$
667.18
417.17
SS (per 1,000 lbs annually) $ 359.85
$
370.65
$ 381.77
$
393.22
$
405.02
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes,
apartments, condominiums, and
mobile home
parks.
(2) Usage charge based on winter water use
determined as
the average from the prior December -February
period,
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to Industrial users discharging into the
domestic sewer system.
Anexo D
Ciudad de Lodi
Tarifas de aquas reslduales basadas on la utiilzaci6n actubie$ , Prpues1
TARIFAS BASADAS EN U77LIZACi(5N
Carpo mensual poraervicto
24.23
$ 24.96
$ 26.71
$
26.48
$
27.27
Unifamillar (por DU) $
23.52
$
Multffamlilar y no residenclal (1)
$
24.23
$ 24.98
$ 25.71
$
26.48
$
27.27
Medidor haste 3/4"
$
38.83
$ 39.99
$ 41.19
$
42.43
$
43.70
Medidor de V
Medidordo 1 1l2"
$
75.03
$ 77.28
$ 79.80
$
81.99
$
84.45
Medidor de 2"
$
118.63
$ 122.19
$ 125.86
$
129.64
$
133.53
Medidor de 3"
$
220.45
$ 227.06
$ 233.87
$
240.89
$
248.12
Medidor de 4"
$
365.88
$ 376.86
$ 388.17
$
399.82
$
411.81
Medidor de 6"
$ 729.12
1,185.18
$ 750.99
$ 1,200.14
$ 773.52
$ 1,236.14
$ 796.73
$ 1,273.22
$ 820.63
$ 1,311.42
Medidor do81
$
Tarffas de utUizacl6n ($/CCF
$
2.68
$
2.78
$ 2.84
$ 2.93
$
3.02
$
3.11
Unifamilier (2)
$
2.76
$ 2.84
$ 2.93
$
3.02
$
3.11
Muitffamlliar (2)
No residential (2) (3)
$
2.76
$ 2.84
$ 2.93
$
3.02
$
3.11
Alto
Medio
$
3.45
$ 3.55
$ 3.66
$
3.77
$
3.88
Bajo
$
4.49
$ 4.62
$ 4.76
$
4.90
$
5.06
Industrial(4)
Flujo (por MG anual) $ 3,487.41
$
3,592.03
$ 3,699.79
$ 3,810.78
$ 3,925.10
$ 4,042.85
BOD (por 1,000 lbs enual) $
575.51
$
592.78
$ 810.58
$ 628.88
$
647.75
$
$
867.18
417,17
SS (por 1,000 The arual) $
359.85
$
370.85
$ 381.77
$ 393.22
$
405.02
wwa:
(1) Mullifamlllar incluye duplex, tree y catro Juntas, departamentoa, condominios y parquea para cases mdviles.
(2) EI cargo de utllizocidn se base an al use de ague en invierno determinedo tomo un promedlo dei pertodo de diciembre a febrero Ontario
AJustado coda Julio para code cuents.
(3) Seperador. Entas tarffes adn no estan an uso. 14
(4) Aplic e a usuarlos Industrialee descorgando en elstemes de drenaje dom8stit0.
Exhibit E
' 2/18/2014
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE April 1, 2014 TO March 31, 2015
ANEXO E
CIUDAD DE LODI
TARIFAS DE COMPACTADOR COMERCIAL
EN VIGOR DEL 1 DE ABRIL DE 2014 AL 31 DE MARZO DE 2015
Servicio
Commercial Compactor Rates
2X por
3X por
semana
Service
1X Week
2X Week
3X Week
4X Week
5X Week
2 Cubic Yard Compactor
$290.35
$580.70
$871.05
$1,161.40$1,451.75
$1,076.29
3 Cubic Yard Compactor
$358.76
$717.53
_$1,076.29
$1,435.05
$1,793.81
4 Cubic Yard Compactor
$427.73
$855.45
$1,283.18
$1,710.90
$2,138.63
ANEXO E
CIUDAD DE LODI
TARIFAS DE COMPACTADOR COMERCIAL
EN VIGOR DEL 1 DE ABRIL DE 2014 AL 31 DE MARZO DE 2015
Servicio
1X por
semanasemana
2X por
3X por
semana
4X por
semana
5X por
semana
Compactador de 2 yardas
$290.35
$580.70
$871.05
$1,161.40
$1,451.75
cubicas
Compactador de 3 yardas
$358.76
$717.53
$1,076.29
$1,435.05
$1,793.81
cubicas
Compactador de, 4 yardas
$427.73
$855.45
$1,283.18
$1,710.90
$2,138.63
cubicas
15
CERTIFICATE OF MAILING
NOTICE OF RATE SETTING, PROPOSED RATE INCREASE & PUBLIC HEARING DATE
I, Pamela Farris, Administrative Secretary of the Public Works Department of the City of Lodi,
under penalty of perjury, certify as follows:
That for and on behalf of the City Clerk of the City of Lodi, and on March 7, 2014, 1 caused to be
mailed a Notice of Rate Setting, Proposed Rate Increase & Public Hearing Date to all water, wastewater
and solid waste customers of the City of Lodi and all persons owning real property on which these rates
and charges are imposed and as are shown on the last equalized assessment roll of San Joaquin County
(mailing list on file in the office of the Public Works Department), a copy of which Notice is hereto
attached and marked "Exhibit A".
Executed on March 10, 2014.
&A
PAMELA FARRIS
United States Postal Service
PnatanP Statement -- Standard Mail
Pro1 cessed By: RPT on 03107!1407:13:24 PM
Transaction Number:
CAPS Transaction Number:
Postage Statement Number:
201406621132436 M1
2014030721132500M1
182267983
:
Mailing Group ID
Mailing Job Number
Open Date
0
131768900
03-07-2014
c
Preparer
PRESORT CENTER
Origin
PSW -USPS Entered
Close Date
03-07-2014
Job Description
Permit Holder's Name and Address and Email Address, if Any
Name and Address of Mailing Agent
Name and Address of Individual or
(if other than permit holder)
Organization for Which Mailing is Prepared
PRESORT CENTER
(if other than permit holder)
3806 CORONADO AVE # A
PRESORT CENTER
STOCKTON, CA 95204-2314
3806 CORONADO AVE A
CITY OF LODI
�-
Contact Name: ANGELA
STOCKTON, CA 95204-2314
125 S HUTCHINS ST
(D
:�
(209)941-2467
LODI, CA 95240-3469
customercare@pre-sort.com
CRID:5172578
cc
CRID:3780040
CRID: 5172578
Post Office of Mailing
Processing Category
Mailer's Mailing Date
Federal Agency Cost Code
Statement Seq. No.
No. & Type of Containers
STOCKTON CA 95213-9998
Flats
03/07/14
15084A
Sacks: t
35
1 ft. Letter Trays: 0
Type of Postage
SSF Transaction #
Total # of Pieces in
Permit Imprint
0
Mailing
47,108
2 ft. Letter Trays: 0
EMM Letter Trays: 0
t)
Weight of a Single
Combined Mailing
Total Weight
Flat Trays: 221
—
Piece
47.1080 lbs.
Pallets: 0
ccs
0.0959 IDS.
Other: 0
�
Permit #
For Mail Enclosed Within Another Class
For Mail Enclosed Within Another Class
269
[ ]Mailpiece is a product sample.
[ ]Mailpiece is a product sample.
% Samples
% Samples
For Automation Rate Pieces, Enter Date
For Carrier Route Pieces, Enter Date
For Carrier Route Pieces, Enter Date of
For Pieces Bearing a Simplified Address Enter
of Address Matching and Coding
of Address Matching and Coding
Carrier Route Sequencing
Date
03/03/14
03/03/14
03/03/14
of Delivery Statistics File or Alternative Method
Move Update Method:
NCOALink
This is a Political Mailing
This is Official Election Mail
[ ]Letter -size or flat Mailpiece contains
No
No
DVD/CD or other disc.
Parts Completed D E F
Subtotal Posta-e Add parts totals
$9,136.44
Complete if the mailing Includes pieces bearing metered/PC Postage or
PCS. X $ = Postage Affixed
$0•00
N
0
precanceled stamps.
Rate at Which Postage Affixed (Check one)
Lowest Neither
NCorrect
Incentive/Discount
$0.00
o
0
Fee
$0.00
Net Postage Due
$9,136.44
For tlSPS Use;Only: Addtonal Postage Paymgnt (State sason)
TotalUS.PS,Ad usted.Posta a $9,136.44
O
Incentive/Discount Claimed: N/A Type of Fee: N/A
CU
U
`r--
The mailer certifies acceptance of liability for and agreement to pay any revenue deficiencies assessed on this mailing, subject to appeal. If an
0)
agent certifies that he or she is authorized on behalf of the mailer then that mailer is bound by the certification and agrees to pay any
U
deficiencies. In addition, agents may be liable for any deficiencies resulting from matters within their responsibility, knowledge, or control. The
mailer hereby certifies that all information furnished on this form is accurate, truthful, and complete; that the mail and the supporting
documentation comply with all postal standards and that the mailing qualifies for the prices and fees claimed; and that the mailing does not
contain any matter prohibited by law or postal regulation. I understand that anyone who furnishes false or misleading information on this form or
Th
tit®t�tlta�s pecjfi®Act#ti��pnd�n fret!1�1Q9t�tn�l>dlaltit{ritttaiadfAftadd imprisonment.
PS Form 3602-R (Page f of 4)
Privacy Notice: For information regarding our Privacy Policy visit www.usps.com
This oostaae statement was verified and accepted under the PostalOne! program. No postal signature or round stamp is required.
PS Form 3602-R (Page 2 of 4)
Part D
Automation Flats
Flats 3.3 oz (0.2063 lbs) or less
Entry Price Price
No. of Pieces Subtotal Postage Discount Total* Fee Total Total Postage
D1
None
5 -Digit
$0.386
409
$157.8740
$0.0000
$0.0000
$157.8740
D2
None
3 -Digit
$0.472
1,109
$523.4480
$0.0000
$0.0000
$523.4480
D3
None
ADC
$0.524
234
$122.6160
$0.0000
$0.0000
$122.6160
D4
None
Mixed ADC
$0.553
207
$114.4710
$0.0000
$0.0000
$114.4710
D13
DSCF
5 -Digit
$0.342
782
$267.4440
$0.0000
$0.0000
$267.4440
D14
DSCF
3 -Digit
1 $0.428
536
$229.4080
$0.0000
$0.0000
$229.4080
D31 I Part D Total(Add lines D1 -D30) $1,415.26
* May contain both Full Service Intelligent Mail and other discounts.
Part E
Nonautomation Flats
Flats 3.3 oz (0.2063 lbs) or less
Entry Price Price No. of Pieces Subtotal Postage Discount Total Fee Total Total Postage
E1
None
5 -Digit
$0.429
8
$3.4320
$0.0000
$0.0000
$3.4320
E2
None
3 -Digit
$0.497
11
$5.4670
$0.0000
$0.0000
$5.4670
E4
None
Mixed ADC
$0.602
43
$25.8860
$0.0000
$0.0000
$25.8860
E13
DSCF
5 -Digit
$0.384
401
$153.9840
$0.0000
$0.0000
$153.9840
E14
DSCF
3 -Digit
$0.452
39
$17.62801
$0.0000
$0.0000
$17.6280
E15
DSCF
ADC
$0.506
2
$1.01201
$0.0000
$0.0000
$1.0120
Part E Total (Add lines E1 - E22) F $207.41
Part F
Carrier Route Flats
Flats 3.3 oz (0.2063 lbs) or less
Entry Price Price No. of Pieces Subtotal Postage Discount Total** Fee Total Total Postage
F1
I None
I Saturation
$0.211
172
$36.2920
$0.0000
$0.0000
$36.2920
F3
None
High Density
$0.243
131
$31.8330
$0.0000
$0.0000
$31.8330
F4
None
Basic
$0.295
463
$136.5850
$0.0000
$0.0000
$136.5850
F15
DSCF
Saturation
$0.166
38,842
$6,447.7720
$0.0000
$0.0000
$6,447.7720
F16
DSCF
High Density
Plus
$0.194
594
$115.2360
$0.0000
$0.0000
$115.2360
F17
DSCF
High Density
$0.199
737
$146.6630
$0.0000
$0.0000
$146.6630
F18
DSCF
Basic
$0.251
2,388
$599.3880
$0.0000
$0.0000
$599.3880
F81 I Part F Total(Add lines FI -F80)1 $7,513.77
May contain both Full Service Intelligent Mail and other discounts.
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PS Form 3602-R (Page 4 of 4)
Proposition 218 Notification and Protest Hearing Process
Summary:
The Lodi City Council will consider proposed future water, wastewater and contracted solid
waste rate increases at a public hearing at 7:00 p.m., Wednesday, May 7, 2014, at the Carnegie
Forum, 305 West Pine Street, Lodi. A majority protest would stop the proposed future increases.
If you wish to protest the proposed increases written protests may be made in person at the
hearing or delivered to:
City of Lodi
Attention: City Clerk
221 West Pine Street
Post Office Box 3006
Lodi, California 95 241-19 10
If you already filed a protest prior to the continuance of the December 18, 2013 hearing on
this Notice, your prior protest will be counted.
Explanation of Protest Process
Proposition 218 requires that the City provide a notice of the proposed future rate schedule to all
property owners forty-five (45) days prior to holding a public hearing. If a majority of the
property owners or renters who pay the utility bill file oppositions to the increase, the increase
will not take effect. A protest must contain a description of the property owned sufficient to
identify the property. The address or assessor's parcel number is shown on this mailing.
If the name on the written protest is not shown on the last equalized assessment roll of San
Joaquin County as the owner of the property or on the utility account, the signer of the protest
must also submit written evidence of ownership or rentership and utility bill responsibility.
At the public hearing, Council shall hear all protests and tabulate the ballots. One written protest
per parcel, filed by the owner or tenant (paying the utility bill) of the parcel shall be counted in
calculating a majority protest to a proposed new fee or charge subject to the requirements of
Section 6 of Article XIII D of the California Constitution. If the votes conflict, the City will
count the no vote.
Explanation of Proposed Future Increases:
City Staff is requesting that the City Council pre -authorize inflationary based adjustments in an
amount up to the lesser of three percent (3%) or the actual amount of inflation for the next five
years to pay for anticipated inflationary based cost increases. Water rates will be increased by up
to their applicable index each January 1, from 2015 through 2019 and wastewater rates each July
1, from 2014 through 2019.
In addition staff is requesting that Council make a small adjustment to rates to more equitably
distribute costs among its various classes of rate payers. Currently, metered single family
residential customers pay for water on a tiered system. The more a customer uses, the more they
pay per gallon. However, multi -family (condominiums/duplexes), commercial and industrial
customers pay for all their water at the first tier rate. This rate restructuring would effectively
lower costs for single family metered customers and increase rates for multi -family, commercial
and industrial customers to achieve better equity between these customer classes. Net rate
revenues will remain unchanged.
The City of Lodi proposes to increase all water and wastewater rates by an amount up to the
percentage increase in the annual average of the Engineering News Record (20 cities average)
Index ("ENR"), as of September 30 (water) and March 31 (wastewater) of each year from 2014
through 2018. The City of Lodi also proposes to increase contracted solid waste charges by the
annual change in the Consumer Price Index for All Urban Consumers for San Francisco -San Jose
California Area All Items (1982-84=100) published by the Bureau of Labor Statistics ("CPI") as of
December 31 of each year from December 31, 2014 through December 31, 2018. The water and
wastewater increases shall not exceed three percent (3%) per year. The ENR and CPI based
increases will be implemented as needed to pay for inflation -based increased costs of providing
water, wastewater and contracted solid waste services.
The City also proposes to institute new rates for installation of meters over 3/4 of an inch as set
forth in the attached rate table entitled Exhibit A Meter Charge Schedule; establish a new vacant
unit rate as set forth in the attached rate table entitled Exhibit B Vacant Unit Rate; approve new
flat rate water and wastewater rates as set forth in the attached rate tables entitled Exhibit C
Current and Proposed Flat Water Rates and Flat Wastewater Rates; and restructure rates for
single-family residential, multi -family and non residential as further described in the attached
rate table entitled Exhibit D Current and Proposed Usage Based Water Rates and Usage Based
Wastewater Rates. The current commercial compactor rates for solid waste are shown in Exhibit
E and will be adjusted for CPI changes as provided in the next paragraph. The rate restructuring,
vacant unit rate and meter installation rate for meters exceeding 3/4 inch will take place on
May 8, 2014.
Basis of Proposed Rate Calculation
The new ENR and CPI based rates will be calculated by increasing the then existing rate in each
of five years starting in 2014 by the prior year's increase in the ENR or CPI but not to exceed 3
percent for water and wastewater. Staff's recommended rate for the meter installation over 3/4 of
an inch is calculated as the City's actual contracted cost to purchase the meter plus 55 percent to
cover a portion of the installation cost and is presented in column 2 of the Exhibit A Meter
Charge Schedule. The vacant rate is calculated as the monthly base charge for water or
wastewater. The rate restructuring is calculated by increasing the single tier for multi -family and
non-residential by the weighted average of the multiple tier rate and decreasing all of the single-
family rates by the exact amount of the revenue that the increase to multi -family and non-
residential is projected to generate.
Conclusion:
If you have any questions about this notice, please call the Public Works Department at (209)
333-6706 between 7:30 a.m. and 5:30 p.m., Monday through Thursday, and between 8:00 a.m.
and 5:00 p.m. on Friday. City Hall is closed every other Friday.
RANDI JOHL-OLSON, City Clerk
City of Lodi
Notificaci6n de Proposici6n 218 y proceso de audiencia de protesta
Resumen:
El Consejo de la ciudad de Lodi considerard los incrementos propuestos en las tarifas de agua,
aguas residuales y desechos s6lidos contratados en una audiencia publica a las 7 PM, el miercoles
7 de mayo de 2014, en el Carnegie Forum, en el 305 West Pine Street, Lodi. Una protesta
mayoritaria detendrdn los incrementos futuros propuestos. Si desea protestar por los incrementos
se pueden hacer protestas por escrito en persona en la audiencia o las puede entregar en:
Ciudad de Lodi
Atenci6n: City Clerk
221 West Pine Street
Post Office Box 3006
Lodi, California 95241-1910
Si ya present6 una protesta antes del aplazamiento de la audiencia del 18 de diciembre de
2013 por esta Notificaci6n, su protesta anterior sera contada.
Explicaci6n del proceso de protesta
La Proposici6n 218 requiere que la Ciudad proporcione una notificaci6n del programa de tarifas
futuras propuestas a todos los duenos de propiedad cuarenta y cinco (45) dias antes de llevar a
cabo la audiencia publica. Si la mayoria de los duenos de propiedad o renteros que pagan el
recibo de servicios presentan oposiciones por el incremento, este no entrard en vigor. Una
protesta debe contener una descripci6n de la propiedad suficiente para identificar la misma. La
direccidn o numero de parcela del valuador se muestra en este correo.
Si no se muestra el nombre en la protesta por escrito en la ultima lista de tasaci6n ajustada del
Condado de San Joaquin como dueflo de la propiedad o en la cuenta de servicios, el firmante de
la propuesta tambien debe presentar evidencia por escrito de dicha propiedad o arrendamiento y
su responsabilidad por el recibo de servicios.
En la audiencia publica, el Consejo deberd escuchar todas las propuestas y tabular los votos. Se
deberd contar una protesta por escrito por parcela, presentada por el propietario o inquilino
(pagando el recibo de servicios) de la parcela para el cdlculo de una protesta mayoritaria por un
cargo o tarifa nueva propuesta sujeto a los requerimientos de la Secci6n 6 del Articulo XIII D de
la Constituci6n de California. Si hay conflicto en los votos, la Ciudad to contard sin voto.
Explicaci6n de los incrementos futuros propuestos:
El personal de la Ciudad estd solicitando que el Consejo de la ciudad pre-autorice los ajustes
basados en la inflaci6n por una cantidad que sea la menor de tres por Ciento (3%) o la cantidad
real de la inflaci6n por los siguientes cinco anos para pagar los incrementos de costos anticipados
basados en la inflaci6n. Las tarifas de agua se incrementardn hasta su indice aplicable cada 1 de
enero, de 2015 a 2019 y las tarifas por aguas residuales cada 1 de julio, de 2014 al 2019.
Ademds, el personal solicita que el Consejo haga pequenos ajustes a las tarifas para distribuir los
costos mds equitativamente entre sus diversas clases de pagadores de tarifa. Actualmente, los
clientes residenciales unifamiliares con medidor pagan por agua con un sistema de niveles. Entre
mds usa un cliente, mds paga por gal6n. Sin embargo, los clientes de multifamiliares
(condominios/duplex), comerciales e industriales pagan por toda su agua con tarifa de primer
nivel. Esta reestructuracion de tarifas disminuird efectivamente los costos para los clientes
unifamiliares con medidor e incrementard las tarifas para clientes multifamiliares, comerciales e
industriales para lograr una mayor equidad entre las clases de clientes. Los ingresos netos por
tarifas permaneceran sin cambio.
La Ciudad de Lodi propone incrementar todas las tarifas de agua y aguas residuales por una
cantidad de hasta el porcentaje de incremento en el promedio anual del Indice del Engineering New
Record ("ENR") (promedio de 20 ciudades), al 30 de septiembre (agua) y 31 de marzo (aguas
residuales) para cada ano del 2014 al 2018. La Ciudad de Lodi tambien propone incrementar los
cargos por desechos s6lidos contratados por el cambio anual en el indice de precios al consumidor
para todos los consumidores urbanos del area de San Francisco -San Jose California, todos los
conceptos (1982-84=100) publicados por la Oficina de Estadisticas Laborales ("IPC") al 31 de
diciembre de cada ano del 31 de diciembre de 2014 al 31 de diciembre de 2018. Los incrementos en
agua y aguas residuales no excedera del tres por ciento (3%) por ano. Los incrementos basados en
ENR e IPC seran implementados segnn sea necesario para pagar los costos incrementados basados
en la inflaci6n para proporcionar servicios de agua, aguas residuales y desechos s6lidos contraidos.
La Ciudad tambien propone instituir nuevas tarifas para la instalaci6n de medidores de mas de/4
de pulgada como se establece en la tabla de tarifas adjunta titulada como Anexo A Programa de
cargos por medidor; establecer una. nueva tarifa de unidad vacante como se establece en la tabla
de tarifas adjunta titulada como Anexo B Tarifa de unidad vacante; aprobar una. nueva tarifa fija
para agua y aguas residuales como se establece en las tablas de tarifas adjuntas tituladas Anexo C
Tarifas de agua fijas y tarifas de aguas residuales fijas actuales y propuestas; y tarifas de
reestructuraci6n para unifamiliares residenciales, multifamiliares y no residenciales como se
describe en la tabla de tarifas adjunta titulada Anexo D Tarifas de agua y tarifas de aguas
residuales basadas en use actuales y propuestas. Las tarifas de compactador comercial actuales se
muestran en el Anexo E y se ajustaran segun los campos en el IPC como se indica en el siguiente
parrafo. La tarifa de reestructuraci6n, la tarifa de unidad vacante y la tarifa de instalaci6n de
medidor para medidores que exceden 3/4 de pulgada se aplicaran el 8 de mayo de 2014.
Bases para el calculo de la tarifa propuesta
Las nuevas tarifas basadas en el ENR y el IPC seran calculadas al incrementar la tarifa entonces
existente en cada uno de los cinco anos a partir de 2014 por el incremento del ano anterior en el
ENR o el IPC sin exceder el 3 por ciento para agua y aguas residuales. La tarifa recomendada
por el personal para la instalaci6n de medidor de mas de 3/4 de pulgada se calcula segun el costo
contratado actual de la Ciudad para comprar el medidor mas 55 por ciento para cubrir una
porci6n de la instalaci6n y se presenta en la columna 2 del Anexo A Programa de cargos por
medidor. La tarifa de vacantes se calcula en un cargo mensual por agua y aguas residuales. La
tarifa de reestructuraci6n se calcula al incrementar el nivel unico para multifamiliar y no
residencial segun el promedio ponderado de tarifas de multiple nivel y disminuyendo todas las
tarifas de unifamiliares por la cantidad exacta de ingresos que el incremento en multifamiliares y
no residenciales se proyecta que genre.
Conclusi6n:
Si tiene alguna pregunta sobre esta notificaci6n, llamar al Departamento de Obras Pfiblicas al
(209) 333-6706 entre 7:30 AM y 5:30 PM, de Tunes a jueves y entre las 8:00 AM y las 5:00 PM
los viernes. El Ayuntamiento cierra cada dos viernes.
RANDI JOHL-OLSON, Secretario del ayuntamiento
Ciudad de Lodi
CITY COUNCIL CITY OF L O D I
PHIL KATZAKIAN, Mayor
LARRY D.HANSEN,
PUBLIC WORKS DEPARTMENT
Mayor Pro Tempore
CITY HALL, 221 WEST PINE STREET / P.O. BOX 3006
BOB JOHNSON
LODI, CALIFORNIA 95241-1910
JOANNE L. MOUNCE
TELEPHONE (209) 333-6706 / FAX (209) 333-6710
ALAN NAKANISHI
EMAIL pwdept@lodi.gov
http://www.lodi.gov
February 1, 2014
SUBJECT: Proposed Schedule of Utility Rate Increases
KONRADT BARTLAM,
City Manager
RANDI JOHL-OLSON,
City Clerk
D. STEPHEN SCHWABAUER,
City Attorney
F. WALLY SANDELIN,
Public Works Director
This letter to our utility customers addresses some commonly questioned aspects of the
Proposition 218 process relative to forecasted utility rate increases. One, the City's
Proposition 218 notices will not result in any increase in utility rates. The Proposition 218
notice is a notice of proposed rate schedules and does not constitute a utility rate
increase. It the case of water and wastewater rates, it sets a maximum limit of 3% for
future rate increases, even if the inflationary index exceeds 3%. In the case of refuse
rates, it sets a maximum limit equal to the change in the Consumer Price Index (CPI).
Two, the City has acted transparently by regularly presenting at numerous public
meetings the financial models for the water and wastewater utilities that contain specific
information on the forecasted increases in costs for personnel, utilities, materials,
supplies, and debt service and lists specific system improvement projects. As recently as
October 15, 2013, this information was presented at the Shirtsleeve meeting and is
available online at the City Council Agendas and Minutes site.
Three, the financial models present the best information available that support the notion
of continued modest increases in rates. Again, the Council will not be voting on April 16
to increase rates by 3% for each of the next five years. Each year, actual numbers from
the prior year and budget numbers for the next year provide the facts to Council so a
decision can be made as to whether there should be no rate increase or a modest
increase.
Four, the objective of the proposed rate schedules is to make it possible to offset
inflationary increases in water and wastewater operating costs should that become
necessary. The rate changes are not intended to fund capital projects. In the past,
maximum permitted rate increases have not been implemented and, in fact, the average
annual water rate increase has been 1.2% over the past six years.
Five, the proposed rate schedules will not be used to pay for infrastructure required to
serve the demands presented by new development. The development impact fee
program requires new development to reimburse the City for past and future investments
in water, wastewater, streets, police, fire and other infrastructure. In fact, if new
development exceeds that forecasted in the financial models, this could partially offset
recommended inflationary increases.
K:\WP\UTILITY RATES\W W1M2014 W -WW Rate Increase\Prop218\2nd Notice\ExplanationLetter.doc
5
Lastly, significant system improvements are planned that will, in the long term,
significantly reduce expensive maintenance costs and evenly spread utility costs (rates)
amongst our customers. These system improvements include the water and wastewater
replacement program, water meter installation program, old water meter retrofit program,
and system -wide well maintenance. And there are administration costs to run the utilities
with much of those costs related to meeting State requirements for the operation of the
wastewater treatment plant and the recently -completed water treatment plant.
Sincerely,
F. Wally Sandelin
Public Works Director
FWS/pmf
K:\WP\UTILITY RATES\W_WIM2014 W -WW Rate Increase\Prop218\2nd Notice\ExplanationLetter.doc
6
CITY COUNCIL CITY OF L O D I
PHIL KATZAKIAN, Mayor
LARRY D.HANSEN,
PUBLIC WORKS DEPARTMENT
Mayor Pro Tempore
CITY HALL, 221 WEST PINE STREET / P.O. BOX 3006
BOB JOHNSON
LODI, CALIFORNIA 95241-1910
JOANNE L. MOUNCE
TELEPHONE (209) 333-6706 / FAX (209) 333-6710
ALAN NAKANISHI
EMAIL pwdept@lodi.gov
http://www.lodi.gov
1 de febrero de 2014
TEMA: Programa propuesto para incrementos en tarifas de servicios
KONRADT BARTLAM,
City Manager
RANDI JOHL-OLSON,
City Clerk
D. STEPHEN SCHWABAUER,
City Attorney
F. WALLY SANDELIN,
Public Works Director
Esta carta para nuestros clientes de servicios trata algunos de los aspectos comOnmente
cuestionados sobre el proceso de la Proposici6n 218 relativo a la predicci6n de
incrementos en las tarifas de servicios. Uno, las notificaciones de la Proposicion 218 de
la ciudad no resultaran en ningtin incremento de las tarifas de servicios. La notificaci6n
de la Proposicion 218 es una notificacion sobre el programa de tarifas propuesta y no
constituye un incremento en las tarifas de servicios. En el caso de las tarifas por agua y
aguas residuales, se tiene establecido un limite maximo de 3% para futuros incrementos
en tarifas, incluso si el indice inflacionario excede el 3%. En el caso de tarifas de
rechazo, se establece un Ifmite maximo igual al cambio en el indice de precios al
consumidor (IPC).
Dos, la Ciudad ha actuado de manera transparente al presentar regularmente en
numerosas reuniones publicas los modelos financieros de los servicios de agua y aguas
residuales los cuales contienen informaci6n especffica sobe los incrementos
pronosticados en cuanto a los costos de personal, servicios, materiales, suministros y
servicios de deuda y enumera proyectos especfficos de mejora en el sistema. Tan
reciente como el 15 de octubre de 2013, esta informaci6n fue presentada en la reunion
de Shirtsleeve y tambien esta disponible en linea en el sitio de Agenda y minutas del
consejo municipal.
Tres, los modelos financieros presentan la mejor informaci6n disponible que apoya la
noci6n de incrementos modestos continuos en las tarifas. De nuevo, el Consejo no
votara el 16 de abril para el incremento de las tarifas en un 3% para cada uno de los
siguientes cinco anos. Cada ano, los numeros reales del ano anterior y los nOmeros del
presupuesto para el siguiente ano proporcionan los hechos para el Consejo de manera
que se pueda tomar una decisi6n respecto a si no debe haber incremento en las tarifas o
si debe haber un incremento modesto.
EI objetivo del programa de tarifas propuesto es el de poder compensar, los incrementos
inflacionarios en los costos de operaci6n del agua y aguas residuales de ser estos
necesarios. Los cambios en las tarifas no tienen el prop6sito de generar fondos para
proyectos de inversi6n. En el pasado, los incrementos maximos permitidos a las tarifas
no fueron implementado y, de hecho, la tarifa promedio anual por agua ha incrementado
1.2$ durante los altimos seis anos.
K:\WP\UTILITY RATES\W_W1M2014 W -WW Rate Increase\Prop218\2nd Notice\7159 ExplanationLetter ES.doc
7
Cinco, el programa de tarifas propuesto no sera usado para pagar por la infraestructura
requerida para dar servicio a la demanda requerida por el nuevo desarrollo. EI programa
de cuota de impacto del desarrollo requiere que el nuevo desarrollo reembolse a la
Ciudad las inversion es pasadas y futuras en agua, aguas residuales, calles, policia,
incendio y demas infraestructuras. De hecho, si el nuevo desarrollo excede dicho
pron6stico en los modelos financieros, esto podria compensar parcialmente los
incrementos inflacionarios recomendados.
Por ultimo, se planean significativas mejoras en el sistema que, a largo plazo, reduciran
sign ificativamente los caros costos de mantenimiento y distribuiran de manera equitativa
los costos (tarifas) por servicios entre nuestros clientes. Estas mejoras en el sistema
incluyen programa de reemplazo de agua y aguas residuales, programa de instalaci6n
de medidores de agua, programa de reacondicionamiento de medidores antiguos de
agua y mantenimiento de todo el sistema. Y hay costos administrativos para hacer
funcionar los servicios con muchos de esos costos relacionados a cumplir con los
requerimientos estatales por operaci6n de la planta de tratamiento de aguas residuales y
la planta de tratamiento de agua recientemente terminada.
Cordialmente,
F. Wally Sandelin
Director de obras publicas
FWS/pmf
K:\WP\UTILITY RATES\W WW\2014 W -WW Rate Increase\Prop218\2nd Notice\7159 ExplanationLetter ES.doc
8
Exhibit A
Meter Charge Schedule
Meter
Recommended
Capacity
Installed
Lodi Fee
Santa
No
Size
Price
Based
Cost
Schedule
Clara
Charge
Based
(Contractor
Fee
Cost x 1.55
Prices)
Schedule
3/
$300
$300
$940
$400
$370
$0
1
$350
$500
$1,420
$480
$365
$0
1 'h
$780
$1,000
$3,810
$745
$1,565
$0
2
$970
$1,600
$5,720
$930
$1,730
$0
3
$1,980
$3,000
$5,950
N/A
$2,065
$0
4
$3,570
$5,000
N/A
N/A
$4,130
$0
6
$6,760
$10,000
N/A
N/A
$6,750
$0
8
$11,526 ----ii
,666
N/A
N/A
1 10,670
$o
Exhibit B
Vacant Unit Rate
• Flat rate residential customers — monthly service charge for a % inch meter
• Metered residential customers — no vacant utility rate
• Master metered multi -family — no vacant utility rate
• Metered multi -family unit — no vacant utility rate
• Monthly service charge will reduce with conservation pricing
C:\Users\pfarris\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\H9PPDLYX\ExhibitsAB.doc
9
Anexo A
Programa de cobro de medidor
Tamano
Precio base
Capacidad
Costo
Programa
Programa
Sin cargo
de
recomendado
basada
instalado
de tarifas
de tarifas
medidor
(Costo x 1.55)
(Precios de
de Lodi
de Santa
contratista)
Clara
%
$300
$300
$940
$400
$370
$0
1
$350
$500
$1,420
$480
$365
$0
1 '/2
$780
$1,000
$3,810
$745
$1,565
$0
2
$970
$1,600
$5,720
$930
$1,730
$0
3
$1,980
$3,000
$5,950
N/A
$2,065
$0
4
$3,570
$5,000
N/A
N/A
$4,130
$0
6
$6,760
$10,000
N/A
N/A
$6,750
$0
8
$11,520
$16,000
N/A
N/A
$10,670
$0
•
Tarifa de unidad vacante
• Tarifa fija clientes residenciales — cargo mensual por servicio por un
medidor de % de pulgada
• Clientes residenciales con medidor — sin tarifa de servicio vacante
• Multifamiliar con medidor principal — sin tarifa de servicio vacante
• Unidad multifamiliar con medidor — sin tarifa de servicio vacante
• EI cargo mensual de servicio se reducira con precios de conservacion
K:\WP\UTILITY RATES\W_WIM2014 W -WW Rate Increase\Prop218\2nd NoticeV159 ExhibitsA&B ES.doc
10
Exhibit C
City of Lodi
_.J el-
Notes:
(1) Multi -family includes duplexes, triplexes, fourpiexes, apartments, and condominiums.
Anexo C
Ciudad de Lodi
V -19-e a..e ata. v nrnrnlnsetas
VYllv..a
a..v •
-- ---
Future Rate Coiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Actual
(Jan. 2013)
(Jan. 2014)
(Jan. 2015) (Jan. 2016) (Jan. 2017) (Jan. 2018) (Jan. 2019)
Rate Increase -a
Propuesta
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
TARIFAS WAS
Single Family Residential
$
29.90
$
30.65
$
31.57
$ 32.52
$ 33.50
$ 34.51
$ 35.55
1 Bedroom
2 Bedroom
$
35.91
$
36.81
$
37.91
$ 39.05
$ 40.22
$ 41.43
$ 42.67
3 Bedroom
$
43.04
$
44.12
$
45.44
$ 46.80
$ 48.20
$ 49.65
$ 51.14
4 Bedroom
$
51.72
$
53.01
$
54.60
$ 56.24
$ 57.93
$ 59.67
$ 61.46
5 Bedroom
$
62.03
$
63.58
$
65.49
$ 67.45
$ 69.47
$ 71.55
$ 73.70
6 Bedroom
$
74.44
$
76.30
$
78.59
$ 80.95
$ 83.38
$ 85.88
$ 88.46
Mu1if-Family (1)
1 Bedroom
$
25.67
$
26.31
$
27.10
$ 27.91
$ 28.75
$ 29.61
$ 30.50
2 Bedroom
$
30.79
$
31.56
$
32.51
$ 33.49
$ 34.49
$ 35.52
$ 36.59
3 Bedroom
$
36.94
$
37.86
$
39.00
$ 40.17
$ 41.38
$ 42.62
$ 43.90
4 Bedroom
$
44.32
$
45.43
$
46.79
$ 48.19
$ 49.64
$ 51.13
$ 52.66
Mobile Homes
Any Size
$
25.67
$
26.31
$
27.10
$ 27.91
$ 28.75
$ 29.61
$ 30.50
Non -Residential
Ddsting unmetered
$ 40.17
Varies
$
+2.5%
$ 43.90
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourpiexes, apartments, and condominiums.
Anexo C
Ciudad de Lodi
V -19-e a..e ata. v nrnrnlnsetas
Notas:
(1) Mui6familiar induye duplex, tres y catro juntas, departamentos y condominios.
Tarifa futura mAxIma
Actual
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
Propuesta
(Eno. 2013) (Eno. 2014)
(Eno. 2015) (Eno. 2016) (Eno. 2017) (Erie. 2018) (Ene.2019)
Incremento de tarifa -a
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
TARIFAS WAS
Residencfal unfamiliar
1 recbmara
$ 29.90
$
30.65
$
31.57
$ 32.52
$ 33.50
$
34.51
$ 35.55
2 recAmaras
$ 35.91
$
36.81
$
37.91
$ 39.05
$ 40.22
$
41.43
$ 42.67
3 recAmaras
$ 43.04
$
44.12
$
45.44
$ 46.80
$ 48.20
$
49.65
$ 51.14
4 recAmaras
$ 51.72
$
53.01
$
54.60
$ 56.24
$ 57.93
$
59.67
$ 61.46
5 rerAmaras
$ 62.03
$
63.58
$
65.49
$ 67.45
$ 69.47
$
71.55
$ 73.70
6 recAmaras
$ 74.44
$
76.30
$
78.59
$ 80.95
$ 83.38
$
85.88
$ 88.46
Multifamiliar (1)
1 recfimara
$ 25.67
$
26.31
$
27.10
$ 27.91
$ 28.75
$
29.61
$ 30.50
2 rec3maros
$ 30.79
$
31.56
$
32.51
$ 33.49
$ 34.49
$
35.52
$ 36.59
3 recAmaras
$ 36.94
$
37.86
$
39.00
$ 40.17
$ 41.38
$
42.62
$ 43.90
4 rec maras
$ 44.32
$
45.43
$
46.79
$ 48.19
$ 49.64
$
51.13
$ 52.66
Casas m6viles
Cuaiquier tamanno
$ 25.67
$
26.31
$
27.10
$ 27.91
$ 28.75
$
29.61
$ 30.50
No residencial
Fxdstentes sin medido
Varla
+2.5%
+3.0°,6
+3.0%
+3.0%
+3.0%
+3.0°/.
Notas:
(1) Mui6familiar induye duplex, tres y catro juntas, departamentos y condominios.
Exhibit C
City of Lodi
Current and
Notes:
(1) Las tarifas fijas por aquas residuales propuestas para escuelas ser6n determinadas basandose en 18 estudiantes por SSU.
12
(Jul.2013)
(Jul.2014)
(Jul -2015)
(Jur. zu'Iol
tJUL GY11/
�aY, •v.v�
Rate Increase ->
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
$ 26.60
$ 27.40
$ 28.22
$ 29.07
$ 29.94
1 Bedroom
$ 25.83
$ 34.44
$ 35.47
$ 36.53
$ 37.63
$ 38.76
$ 39.92
2 Bedroom
$ 43.05
$ 44.34
$ 45.67
$ 47.04
$ 48.45
$ 49.90
3 Bedroom
4 Bedroom
$ 51.66
$ 53.21
$ 54.81
$ 56.45
$ 58.14
$ 59.88
5 Bedroom
S 60.27
$ 62.08
$ 63.94
$ 65.86
$ 67.84
$ 69.88
6 Bedroom
S 68.88
$ 70.95
$ 73.08
$ 75.27
$ 77.53
$ 79.86
7 Bedroom
$ 77.49
$ 79.81
$ 82.20
$ 84.67
$ 87.21
$ 89.83
Duplexes, Tr►p►exes, Fourplexes, Apa►tments,
and Condominiums
1 Bedroom
$ 25.83
$ 26.60
$ 27.40
$ 28.22
$ 29.07
$ 29.94
2 Bedroom
$ 34.44
$ 35.47
$ 36.53
$ 37.63
$ 38.76
$ 39.92
3 Bedroom
$ 43.05
$ 44.34
$ 45.67
$ 47.04
$ 48.45
$ 49.90
4 Bedroom
$ 51.66
$ 53.21
$ 54.81
$ 56.45
$ 58.14
$ 59.88
Mobile Homes
25.83
$ 26.60
$ 27.40
$ 28.22
$ 29.07
$ 29.94
Any Size
$
Non-Residendal (1)
34.441$
35.47
$ 36.53
$ 37.63
$ 38.76
$ 39.92
Per SSU
$
Notes:
to be determined on the basis of 18 student per SSU.
(1) Proposed flat wastewater
rates for schools
are
Anexo C
Ciudad de Lodi
Tarifas de ague residuales files
actuales
uestas
Tarifa future mbxima
Actual
Propuesia
Prapuesta
Propuesta
Prop
Propuesta
(Ene.2013)
(Ene.2014) (Ene.2015) (Ene.2016) (Ene.2017) (Ene.2018)
incremento de Tarifa ->
3.0%
3.0%
3.0%
3.096
3.0%
TARIFAS FUAS
Residendel unfamiliar
$ 25.83
$ 26.60
$ 27.40
$ 28.22
$ 29.07
$ 29.94
1 recdmara
$ 34.44
$ 35.47
$ 36.53
$ 37.63
$ 38.76
$ 39.92
2 recAmaras
$ 43.05
$ 44.34
$ 45.67
$ 47.04
$ 48.45
$ 49.90
3 recimaras
$ 51.66
$ 53.21
$ 54.81
$ 56.45
$ 58.14
$ 59.88
4 recimaras
$ 60.27
$ 62.08
$ 63.94
$ 65.86
$ 67.84
$ 69.88
5 recOmaras
$ 68.88
$ 70.95
$ 73.08
$ 75.27
$ 77.53
$ 79.86
6 recfimaras
79.81
$ 82.20
$ 84.67
$ 87.21
$ 89.83
7 rec5maras
$ 77.49
$
duplex, fres y catro juntas,
departamentos
Y condominios
$ 29.94
1 recimara
$ 25.83
$ 26.60
$ 27.40
$ 28.22
$ 29.07
2 rec8maras
$ 34.44
$ 35.47
$ 36.53
$ 37.63
$ 38.76
$ 39.92
3 rec5maras
$ 43.05
$ 44.34
$ 45.67
$ 47.04
$ 48.45
$ 49.90
4 recOmaras
$ 51.66
$ 53.21
$ 54.81
$ 56.45
$ 58.14
$ 59.88
Cases m6viles
25.83
$ 26.60
$ 27.40
$ 28.22
$ 29.07
$ 29.94
Cualquier tamatio
$
No residential (1)
35.47
$ 36.53
$ 37.63
$ 38.76
$ 39.92
Por SSU
$ 34.44
$
Notes:
(1) Las tarifas fijas por aquas residuales propuestas para escuelas ser6n determinadas basandose en 18 estudiantes por SSU.
12
Exhibit D
City of Lodi
Current and Proposed UsagtSased Water Rates
Current Proposed Proposed Proposed Proposed Proposed Proposed Proposed
_ -. . _ ___ .. I, .__ 9n6Q1 r rsn mi'n Llan. 20181 (Jan. 20191
Rate Increase ->
USAGE -BASED RATES
23.26
Monthly Service Charge
$
Single Family
$ 22.30
Up to 314' meter
$ 23.78 $
1" meter
$ 38.60 $
1 112" meter
$ 75.42 $
2' meter
$ 119.79 $
Mufti -Family and Non -Residential (1)
Up to 314" meter
$ 23.78 $
1" meter
$ 38.60 $
1 112' meter
$ 60.24 $
2" meter
$ 75.27 $
3" meter
$ 105.38 $
4" meter
$ 135.51 $
6" meter
$ 195.68 $
8" meter
$ 255.91 $
10" meter
$ 316.01 $
Usage Rates WC09
114.71
Single Family
$
Tier 1 (0-10 CCF)
$ 0.92 $
Tier 2 (11-50 CCF)
$ 1.38 $
Tier 3 (>50 CCF)
$ 1.82 $
Multi -Family and Non -Residential (1)
All water usage
$ 0.92 $
24.37
$
23.26
$ 22.80
$
21.65
$ 22.30
$
22.97
$
23.66
39.57
$
37.38
$ 36.26
$
34.01
$ 35.03
$
36.08
$
37.16
77.31
$
72.45
$ 69.63
$
64.62
$ 66.56
$
68.56
$
70.62
122.78
$
114.71
$ 109.84
$
101.52
$ 104.57
$
107.71
$
110.94
24.37
$
23.26
$ 22.80
$
21.65
$ 22.30
$
22.97
$
23.66
39.57
$
37.38
$ 36.26
$
34.01
$ 35.03
$
36.08
S
37.16
61.75
$
62.08
$ 64.28
$
64.62
$ 66.56
$
68.56
$
70.62
77.15
$
84.29
$ 94.17
$
101.52
$ 104.57
$
107.71
$
110.94
108.01
$
132.74
$ 162.18
$
187.65
$ 193.28
$
199.08
$
205.05
138.90
$
193.14
$ 254.80
$
310.67
$ 319.99
$
329.59
$
339.48
200.57
$
333.69
$ 480.82
$
617.94
$ 636.48
$
655.57
$
675.24
262.31
$
494.23
$ 747.94
$
986.82
$ 1,016.42
$ 1,046.91
$ 1,078.32
323.91
$
674.61
$ 1,056.08
$ 1,417.30
$ 1,459.82
$
1,503.61
$ 1,548.72
0.94
$
0.94
$ 0.97
$ 0.96
$ 0.99
$ 1.02
$ 1.05
1.41
$
1.35
$ 1.33
$ 1.27
$ 1.31
$ 1.35
$ 1.39
1.87
$
1.76
$ 1.70
$ 1.59
$ 1.64
$ 1.69
$ 1.74
0.94
$
1.00
$ 1.09
$ 1.14
$ 1.17
$ 1.21
$ 1.25
nva:
(1) Mutti-family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
Anexo D
Ciudad de Lodi
Tartfas de ague basadas on utiilzaCl6n
Actual
Incremento de tarifa -> _
TARIFAS BASADAS EN UTILIZAC16N
Cargo mensual par servicio
$ 21.65
Unfamiliar
$ 22.97
Medidor haste 314" $
23.78
Medidor de 1" $
38.60 ;
Medidor de 1 112" $
75.42
Medidor de 2" $
119.79 ;
Muitifamiliar y no residential (1)
Medidor hasta 314" $
23.78
Medidor de 1" $
38.60
Medidor del 112" $
60.24
Medidor de 2" $
75.27
Medidor de 3" $
105.38
Medidor de 4" $
135.51
Medidor de 6" $
195.68
Medidor de 8" $
255.91
Medidor de 10" $
316.01
Tarffas de utilizacibn ($(CCFJ
Unifamliar
$ 187.65
Nivel 1 (0-10 CCF) $
0.92
Nivel 2 (11-50 CCF $
1.38
Nivel 3 (>50 CCF) $
1.82
Muftifamiliar y no residential (1)
Todo use de agua $
0.92
Tarifa futura mixlma
Propuesta propues'a Propuesta Propuesta Propuesta Propuesia Propuesta
Eno. 2914) (Ene.2014) (Ene.2015) (Ens.2016) (Ene.2017) (Ene.2018) (Ene.2019)
2.6% (2) (3} 3.0% (4) 3.00/6 (4) 3.09/6 3.0% 3.0%
24.37
$23.26
$ 22.80
$ 21.65
$ 22.30
$ 22.97
$ 23.66
39.57
$ 37.38
$ 36.26
$ 34.01
$ 35.03
$ 36.08
$ 37.16
77.31
$ 72.45
$ 69.63
$ 64.62
$ 66.56
$ 68.56
$ 70.62
122.78
$ 114.71
$ 109.84
$ 101.52
$ 104.57
$ 107.71
$ 110.94
24.37
$ 23.26
$ 22.80
$ 21.65
$ 22.30
$ 22.97
$
23.66
39.57
$ 37.38
$ 36.26
$ 34.01
$ 35.03
$ 36.08
$
37.16
61.75
$ 62.08
$ 64.28
$ 64.62
$ 66.56
$ 68.56
$
70.62
77.15
$ 84.29
$ 94.17
$ 101.52
$ 104.57
$ 107.71
$
110.94
108.01
$ 132.74
$ 162.18
$ 187.65
$ 193.28
$ 199.08
$
205.05
138.90
$ 193.14
$ 254.80
$ 310.67
$ 319.99
$ 329.59
$
339.48
200.57
$ 333.69
$ 480.82
$ 617.94
$ 636.48
$ 655.57
$
675.24
262.31
$ 494.23
$ 747.94
$ 986.82
$ 1,016.42
$ 1,046.91
$ 1,078.32
323.91
$ 674.61
$ 1,056.08
$ 1,417.30
$ 1,459.82
$ 1,503.61
$ 1,548.72
0.94
$ 0.94
$ 0.97
$ 0.96
$ 0.99
$ 1.02
$ 1.05
1.41
$ 1.35
$ 1.33
$ 1.27
$ 1.31
$ 1.35
$ 1.39
1.87
$ 1.76
$ 1.70
$ 1.59
$ 1.64
$ 1.69
$ 1.74
0.94
$ 1.00
$ 1.09
$ 1.14
$ 1.17
$ 1.21
$ 1.25
nvra5:
(1) Multifamiliar incluye duplex, tres y catro juntas, departamentos, condominios y parques para casas m6viles.
(2) Este programa induye la indexaci6n propuesta del 2.5 por Ciento, sin cambios en la estructura de tartfas.
(3) Este programa de tarifas es neutral en cuanto a ingresos eriativo a las tarifas por agua de enero de 2014 recien indexadas propuestas,
pero incluyen el initio de los cambios a 3 anos propues 03s para la estructura de tarifas.
(4) Estos programas de tarifas ret)ejan el segundo y tercer alio de una adopti6n de estructura de tarifas a 3 anos, asi Como el ajuste
m6ximo a la tarifa potential debido a1 indexado ENR.
Exhibit D
City of Lodi
Current and Proposed se UBased Wastewater Ramb
F_ Future Rate
Current Proposed Proposed Proposed rrOPosea rrvPw .
(Jul. 2013) (JuL 2014) (JuL 2015) (Jul. 2016) (Jul. 2017) (JuL 2018)
Rate Increase -> 3.0% 3.0% 3.0% 3.0% 3.0%
USAGE -BASED RATES
(Ene. 2014) (Eno. 2015) (Ene. 2016) (Ene.
Prvpuesta Prepaesta Propuesta PnFn�;�7
3.0% 3.0% 3.0% '&0
TARIFAS BASADAS EAI UMIZAC16N
Monthly Service Change
$
24.23
$ 24.96
$
25.71
$
26.48
$
27.27
27.27
Single Family (Per DU) $ 23.52
;
24.23
$
24.96
; 25.71
;
26.48
$
2727
dor haste 3/4"
Medist
Mufti -Family and Non -Residential (1)
$
24.23
$ 24.96
$
25.71
$
26.48
$
2727
$
Up to 3/4" meter
$
38.83
$ 39.99
$
41.19
$
42.43
$
43.70
118.63
1" meter
$
75.03
$ 7728
$
79.60
$
81.99
$
84.45
$
1 1/2" meter
$
118.63
$ 122.19
$
125.86
$
129.64
$
133.53
378.88
2" meter
$
220.45
$ 227.06
$
233.87
$
240.89
$
248.12
$ 773.52
3" meter
$
365.88
$ 376.86
$
388.17
$
399.82
$
411.81
$
4" meter
$
729.12
$ 750.99
$
773.52
$
796.73
$
820.63
3.02
6" meter
8" meter
$ 1,165.18
$ 1,200.14
$ 1,236.14
$ 1,273.22
$ 1,311.42
2.84
Usage Rates (VCCPj
$ 2.68
$
2.76
$ 2.84
$
2.93
$
3.02
$
3.11
Single Family (2)
$
2.76
$ 2.84
$
2.93
$
3.02
$
3.11
$
Multi -Family (2)
S
3.11
Allo
medlo
$
3.45
$
3.55
$ 3.88
$
3.77
Non -Residential (2) (3)
$
2.76
$ 2.84
$
2.93
$
3.02
$
3.11
$
Low Strength
$
3.45
$ 3.55
$
3.66
$
3.77
$
3.88
4.042.85
667.18
Medium Strength
$
4.49
$ 4.62
$
4.76
$
4.90
$
5.05
SS (por 1,000 ba anal) $ 359.85
High Strength
370.65
$
361.77
$
Industrial (4)
Flow (per MG annually) $ 3,487.41
$ 3,592.03
$ 3,699.79
$ 3,810.78
$ 3,925.10
$ 4,042.85
667.18
BOD (per 1,000 lbs annualt $ 575.51
$
592.78
$ 610.56
$
628.88
$
$
647.75
405.02
$
$
417.17
SS (per 1,000 lbs annually) $ 359.85
$
370.65
$ 381.77
$
393.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and
mobile home
parks.
determined
as
the average
from
the prior
December
-February
period.
(2) Usage charge based on winter water use
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to Industrial users discharging Into the domestic sewer system.
Ansxo D
Ciudad de Lodi
Tarifas de &guns residuaiss basadas en M ati8zactdn acbrades Y prepdest� I
Act=[
(Eno. 2013)
Ictcranrerrbo ds tarifa ->
(Ene. 2014) (Eno. 2015) (Ene. 2016) (Ene.
Prvpuesta Prepaesta Propuesta PnFn�;�7
3.0% 3.0% 3.0% '&0
TARIFAS BASADAS EAI UMIZAC16N
Carpo in rmual porservk4O
Uniiarniltar (por DU) ; 23.52
$
24.23
$
24.96
$ 25.71
$
26.48
$
27.27
Muftamosx y no residenclal (1)
;
24.23
$
24.96
; 25.71
;
26.48
$
2727
dor haste 3/4"
Medist
$
38,83
$
39.98
$ 41.19
$
42.43
11143.70
Meddorha
$
75.03
$
77.28
$ 79.60
$
81.99
;
84•45
Medldar de 1112"
$
118.63
$
122.19
$ 125.86
$
129.64
$
133.53
Medidor de 2"
$
220.45
$
227.08
$ 233.87
$
240.89
$
248.12
Medidar 3"
$
365-88
$
378.88
$ 386
$
399.82
;
411.81
�� de 4"
Medidor de 6"
$
729.12
$
750.99
$ 773.52
$
796.73
$
820.63
Madidordo8"
$
1,1e5.18
$
1,200.14
$ 1,238.14
$
1,27322
$
1,311.42
Tar►ks db u0noffin (MM
288
;
2.78
;
2.84
; 2.93
$
3.02
$
3.11
Unil mBar (2) ;
$
2.76
$
2.84
$ 2.93
$
3.02
;
3.11
Muit2amlBar (2)
No residendai (2) (3)
$
2.76
$
284
$ 2.93
$
3.02
S
3.11
Allo
medlo
$
3.45
$
3.55
$ 3.88
$
3.77
$
3.88
Bsio
$
4,49
$
4.62
S 4.78
$
4.90
$
5.05
industrial (4)
FW (por MO arcual) $ 3,487.41
;
3,592.03
$
3,899.79
$ 3,810.78
$
3,925.10
$
$
4.042.85
667.18
BOD (por 1,000 Ibs anuaQ $ 575.51
$
592.78
$
610.56
$ 628.88
393.22
$
$
647.75
405.02
$
417.17
SS (por 1,000 ba anal) $ 359.85
$
370.65
$
361.77
$
NOOM.
(1) MuwamBsr inamp duplex, fres y catro Juntas, depart, uwrxlorn do y pa Vm para cases mdvlfes.
(2) EI OgW ds uWL_"6n se bass an al use de ague on kwienw detemcinedo cera un promsdio del periodo de dk ncere a febrero enterlo
ApAtedo vada juYo para cad& cuenta.
(3) SeWador. E*n tsrifae &Qin no est6n On ueo. 14
(4) Mica a usuelos &cdustrlales desamgando on eisAmes de dmn* dw*Woo.
Exhibit E
2/18/2014
raa�as�.wrwr%pimr
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE April 1, 2014 TO March 31, 2015
ANEXO E
CIUDAD DE LODI
TARIFAS DE COMPACTADOR COMERCIAL
EN VIGOR DEL 'I DE ARRIL DE 2014 AL 31 DE MARZO DE 2015
Servicio
Commercial Com
actor Rates
3X por
4X por
Service
1X Week
2X Week
3X Week
4X Week
5X Week
2 Cubic Yard Compactor
$290.35
$580.70
$871.05
$1,161.40
$1,451.75
3 Cubic Yard Corn pactor
$358.76
$717.53
$11076.29
$1,435.05
$1,793.81
$2,138.63
Cubic Yard Compactor
$427.73
$855.45
$1,283.18
$1,710.90
ANEXO E
CIUDAD DE LODI
TARIFAS DE COMPACTADOR COMERCIAL
EN VIGOR DEL 'I DE ARRIL DE 2014 AL 31 DE MARZO DE 2015
Servicio
1X por
Up r
3X por
4X por
5X por
semana
$290.35
semana
$580.70
semana
$871.05
semana
$1,161.40
semana
$1,451.75
Compactador de 2 yardas
cubicas
$358.76
$717.53
$1,076.29
$1,435.05
$1,793.81
Compactador de 3 yardas
Wbicas
$427.73
$855.45
$1,283.18
$1,710.90
$2,138.63
Compactador de 4 yardas
cubicas
15
• CITY OF LODI
• Public Works Department
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
PRSRT STD
U.S. POSTAGE
PAID
STOCKTON CA
PERMIT NO. 269
PROPOSED UTILITY RATE INCREASE
16