HomeMy WebLinkAboutAgenda Report - November 19, 2014 C-19 PHAGENDA ITEM C0,19
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Set Public Hearing for December 17, 2014, to Consider Adopting Resolution Setting Pre -
Approved Engineering News Record (ENR) Adjustment Index for Usage -Based and Flat
Water Rates for Residential, Commercial and Industrial Customers
MEETING DATE: November 19, 2014
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Set public hearing for December 17, 2014, to consider adopting resolution
setting pre -approved Engineering News Record (ENR) adjustment index
for usage -based and flat water rates for residential, commercial and
industrial customers.
BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the past
few years. Last year on December 18, 2013 the City Council approved a
rate increase of 2.5 percent although the ENR index change was 3.3
percent. A summary of the past years water rate changes to the ENR index change is provided in
Attachment A. The purpose of this table is to demonstrate past rate increases have frequently been below
those approved.
At the July 16, 2014 Public Hearing, City Council approved a restructured water rate schedule to be
implemented over the three year period from 2014 through 2016. Two principal elements of the restructuring
were a decrease in residential (3/4 inch meter size) monthly base charge and a decrease in the three -tiered
residential commodity charge and an increase in the single -tiered non-residential and multi -family commodity
charge. A summary of the restructured water rates is provided in Attachment B.
On May 7, 2014, City Council approved a five-year program of rate adjustments for water, wastewater and
solid waste services. For the water and wastewater utilities, the approved annual rate adjustment is the lesser
of the ENR index change or 3 percent. The previous year ENR index change was 2 percent and staff is
recommending a water rate increase of 2 percent. A summary of current and proposed rates for flat rate and
usage -based rate customers is provided in Attachment C. For a resident still on the flat rate, the monthly
charge for a three-bedroom home will increase from $44.12 to $45.00 or $0.88 per month. A metered resident
using 1,800 cubic feet of water per month will see a decrease from $43.46 to $43.05 or $0.41 per month.
FISCAL IMPACT: Increased revenues to the water utility are required to keep up with cost of
service increases and new mandated costs.
FUNDING AVAILABLE: Not applicable.
J�dw_4_� iL"� —
F. Wally S14ndelin
Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
FWS/RAY/smh
Attachments
cc: Matthew Casson, Information Systems
Lance Roberts, Utility Superintendent – Public Works
APPROVED:
City Manager
K:\WP\UTILITY RATES\W–WW\2015 WWW Rate Increase\CCSetPH–WaterRates2015.doc — 11/3/2014
Attachment A
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
2015
2.00 (3)
2.0 (4)
(1) Consumer Price Index change
(2) Consumer Price Index change (December 2008 through December 2010)
(3) Engineering News Record Index change
(4) Recommended by Staff
K:\WP\UTILITY RATES\W_WW\2015 W—WW Rate Increase\Attachement A Programmed Implemented.xlsx
Attachment B
City of Lodi
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This rate schedule is revenue neutral relative to the proposed newly indexed July 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(3) 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.
Summary of Restructured
Water Rates
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
(Jan. 2014)
(July 2014)
(Jan. 2015)
(Jan. 2016)
(Jan. 2017)
(Jan. 2018)
(Jan.
2019)
Rate Increase -->
(2)
3.0%(3)
3.0%(3)
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$ 22.97
$
23.66
1" meter
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$ 36.08
$
37.16
1 1/2" meter
$
77.31
$
72.45
$
69.63
$
64.62
$
66.56
$ 68.56
$
70.62
2" meter
$
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
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$ 22.97
$
23.66
1" meter
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$ 36.08
$
37.16
1 1/2" meter
$
61.75
$
62.08
$
64.28
$
64.62
$
66.56
$ 68.56
$
70.62
2" meter
$
77.15
$
84.29
$
94.17
$
101.52
$
104.57
$ 107.71
$
110.94
3" meter
$
108.01
$
132.74
$
162.18
$
187.65
$
193.28
$ 199.08
$
205.05
4" meter
$
138.90
$
193.14
$
254.80
$
310.67
$
319.99
$ 329.59
$
339.48
6" meter
$
200.57
$
333.69
$
480.82
$
617.94
$
636.48
$ 655.57
$
675.24
8" meter
$
262.31
$
494.23
$
747.94
$
986.82
$
1,016.42
$ 1,046.91
$
1,078.32
10" meter
$
324.00
$
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)
$
0.94
$
0.94
$
0.97
$
0.96
$
0.99
$ 1.02
$
1.05
Tier 2 (11-50 CCF)
$
1.41
$
1.35
$
1.33
$
1.27
$
1.31
$ 1.35
$
1.39
Tier 3 (>50 CCF)
$
1.87
$
1.76
$
1.70
$
1.59
$
1.64
$ 1.69
$
1.74
Multi -Family and Non -Residential (1)
All water usage
$
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 rate schedule is revenue neutral relative to the proposed newly indexed July 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(3) 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.
Attachment C
City of Lodi -- Water Utility
Current and Proposed Water Rates
I Current Jan. 2015 1
Flat Rates ($/month)
$
Percent Increase
36.81
Single Family Residential Unit ($/month)
1 Bedroom
$
2 Bedroom
$
3 Bedroom
$
4 Bedroom
$
5 Bedroom
$
6 Bedroom
$
7 Bedroom
$
Multi -Family Residential Unit ($/month)
1 Bedroom
$
2 Bedroom
$
3 Bedroom
$
2.0%
30.65
$
31.26
36.81
$
37.55
44.12
$
45.00
53.01
$
54.07
63.58
$
64.85
76.30
$
77.83
91.50
$
93.33
26.31
$
26.84
31.56
$
32.19
37.88
$
38.64
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
$
23.26
$
23.03
1" Meter
$
37.38
$
37.02
1 1/2" Meter
$
72.45
$
71.75
2" Meter
$
114.71
$
113.60
Multi -Family and Non -Residential
5/8" Meter
$
23.26
$
23.03
3/4" Meter
$
23.26
$
23.03
1" Meter
$
37.38
$
37.02
1 1/2" Meter
$
62.08
$
61.48
2" Meter
$
84.29
$
83.47
3" Meter
$
132.74
$
131.45
4" Meter
$
193.14
$
191.26
6" Meter
$
333.69
$
330.45
8" Meter
$
494.23
$
489.43
10" Meter
$
674.61
$
668.06
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1 - 0 to 10 CCF/month
$
0.94
$
0.93
Tier 2 - 11 to 50 CCF/month
$
1.35
$
1.34
Tier 3 - Over 50 CCF/month
$
1.76
$
1.74
Multi -Family and Non -Residential
All Water Usage
$
1.00
$
0.99
K:\WP\UTILITY RATES\W_WW\2015 W_WW Rate Increase\Attachment C Water Rates.xls
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 PRE -APPROVED ENGINEERING NEWS RECORD
ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT WATER
RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
CUSTOMERS
PUBLISH DATE: SATURDAY, DECEMBER 6, 2014
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: JENNIFER M. ROBISON, CITY CLERK
LNS ACCT. #0510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: WEDNESDAY, DECEMBER 3, 2014
ORDERED BY: JENNIFER M. ROBISON
CITY CLERK
PAMELA M. FARRIS
DEPUTY CITY CLERK
ELENA STODDARD
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Faxed to the Sentinel at 369-1084 at (timeyon (da4ej (pages)
LNS Phoned to confirm receipt of all pages at (time) _ES _)MR _PMF (initials)
forms\advinsPW.doc
O9��FORa
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER A RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR
USAGE -BASED AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, November 20, 2014, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider a resolution setting pre -approved Engineering
News Record adjustment index for usage -based and flat water rates 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 December 3, 2014, at Lodi, California.
JENNIFER M. ROBISON
CITY CLERK
42",&Z, G , �
PAMELA M. FARRIS ELENA STODDARD
DEPUTY CITY CLERK ADMINISTRATIVE CLERK
NAAdministration\CLERK\Public Hearings\AFFADAVITS\DECPOSTPW.DOC
0CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: December 17, 2014
Time: 7:00 p.m.
IL I
For information regarding this notice please contact:
Jennifer M. Robison
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, December 17, 2014, at the
hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City
Council will conduct a public hearing at the Carnegie Forum, 305 West Pine
Street, Lodi, to consider the following matter:
a) Adoption of resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water rates for
residential, commercial, and industrial customers (as identified on
the attached revised Exhibit A).
Information regarding this item may be obtained in the Public Works
Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons
are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 W. Pine Street, 2nd
Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk at, or prior to, the
public hearing.
By Order of the Lodi City Council:
JyJn"RVr
eM. obiClerk
Dated: December 3, 2014
app d as to form:
\\,J-anice D,I`i agdich
City Attorney
J:CLERK\PUBLICHEARING\NOTICES\PH NOTICE publication WaterRates.doc 12/3/14
Exhibit A
City of Lodi -- Water Utility
current ana Nroposea water nates
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
1" Meter
1 1/2" Meter
2" Meter
Multi -Family and Non -Residential
5/8" Meter
3/4" Meter
1" Meter
1 1/2" Meter
2" Meter
3" Meter
4" Meter
6" Meter
8" Meter
10" Meter
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1 - 0 to 10 CCF/month
Tier 2 - 11 to 50 CCF/month
Tier 3 - Over 50 CCF/month
Multi -Family and Non -Residential
All Water Usage
Rate Ceiling
Jan. 2015
$ 23.26
Current
Jan. 2015
Flat Rates ($/month)
22.80
$ 37.38
$
35.91
Percent Increase
36.26
$ 72.45
$
2.0%
Single Family Residential Unit ($/month)
69.63
$ 114.71
$
1 Bedroom
$
30.65
$
31.26
2 Bedroom
$
36.81
$
37.55
3 Bedroom
$
44.12
$
45.00
4 Bedroom
$
53.01
$
54.07
5 Bedroom
$
63.58
$
64.85
6 Bedroom
$
76.30
$
77.83
7 Bedroom
$
91.50
$
93.33
Multi -Family Residential Unit ($/month)
1 Bedroom
$
26.31
$
26.84
2 Bedroom
$
31.56
$
32.19
3 Bedroom
$
37.88
$
38.64
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
1" Meter
1 1/2" Meter
2" Meter
Multi -Family and Non -Residential
5/8" Meter
3/4" Meter
1" Meter
1 1/2" Meter
2" Meter
3" Meter
4" Meter
6" Meter
8" Meter
10" Meter
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1 - 0 to 10 CCF/month
Tier 2 - 11 to 50 CCF/month
Tier 3 - Over 50 CCF/month
Multi -Family and Non -Residential
All Water Usage
Rate Ceiling
Jan. 2015
$ 23.26
$
22.58
$
22.80
$ 37.38
$
35.91
$
36.26
$ 72.45
$
68.95
$
69.63
$ 114.71
$
108.77
$
109.84
$ 23.26
$
22.58
$
22.80
$ 23.26
$
22.58
$
22.80
$ 37.38
$
35.91
$
36.26
$ 62.08
$
63.66
$
64.28
$ 84.29
$
93.26
$
94.17
$ 132.74
$
160.61
$
162.18
$ 193.14
$
252.33
$
254.80
$ 333.69
$
476.15
$
480.82
$ 494.23
$
740.68
$
747.94
$ 674.61
$
1,045.83
$
1,056.08
$ 0.94
$
0.96
$
0.97
$ 1.35
$
1.32
$
1.33
$ 1.76
$
1.68
$
1.70
$ 1.00
$
1.08
$
1.09
N:\Administration\CLERK\Public Hearings\NOTICES\Water Rates2014_ExA.xls
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 PRE -APPROVED ENGINEERING NEWS RECORD
ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT WATER
RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
CUSTOMERS
PUBLISH DATE: SATURDAY, NOVEMBER 22, 2014
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: JENNIFER M. ROBISON, CITY CLERK
LNS ACCT, #0510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, NOVEMBER 20, 2014
ORDERED BY: JENNIFER M. ROBISON
CITY CLERK
JENNIFER M. ROBISON, CMC
CITY CLERK
ELENA STODDARD
ADMINISTRATIVE CLERK
42 M_' 0� W 2�.-. "
PAMELA M. FARRIS
DEPUTY CITY CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
fonns\advins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER A RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR
USAGE -BASED AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, November 20, 2014, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider a resolution setting pre -approved Engineering
News Record adjustment index for usage -based and flat water rates 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 December 3, 2014, at Lodi, California.
PAMELA M. FARRIS
DEPUTY CITY CLERK
ORDERED BY:
JENNIFER M. ROBISON
CITY CLERK
ELENA STODDARD
ADMINISTRATIVE CLERK
N:Wdministration\CLERK\Public Hearings\AFFADAVITS\DECPOSTPW.DOC
CITY OF LODI
a •�
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: December 17, 2014
Time: 7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Robison
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, December 17, 2014, at the
hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City
Council will conduct a public hearing at the Carnegie Forum, 305 West Pine
Street, Lodi, to consider the following matter:
a) Adoption of resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water rates for
residential, commercial, and industrial customers (as identified on
the attached Exhibit A).
Information regarding this item may be obtained in the Public Works
Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons
are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 W. Pine Street, 2nd
Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk at, or prior to, the
public hearing.
By Order of the Lodi City Council:
Jennifer M. Robison
City Clerk
Dated: November 20, 2014
Ap ed as to form:
V
Janice D. agdich
orney
JACITYCL11WORMSIPH NOTICE publication Watemates.ccc 1 vi me
Exhibit A
City of Lodi -- Water Utility
Current ana Proposea water Kates
Current
7an.2015
Flat Rates ($/month)
Percent Increase
2.0%
Single Family Residential Unit ($/month)
1 Bedroom
$
30.65
$
31.26
2 Bedroom
$
36.81
$
37.55
3 Bedroom
$
44.12
$
45.00
4 Bedroom
$
53.01
$
54.07
5 Bedroom
$
63.58
$
64.85
6 Bedroom
$
76.30
$
77.83
7 Bedroom
$
91.50
$
93.33
Multi -Family Residential Unit ($/month)
1 Bedroom
$
26.31
$
26.84
2 Bedroom
$
31.56
$
32.19
3 Bedroom
$
37.88
$
38.64
Metered Water Rates
Service Charge ($/month)
Single Family Residential
Up to 3/4" Meter
$
23.26
$
23.03
1" Meter
$
37.38
$
37.02
1 1/2" Meter
$
72.45
$
71.75
2" Meter
$
114.71
$
113.60
Multi -Family and Non -Residential
5/8" Meter
$
23.26
$
23.03
3/4" Meter
$
23.26
$
23.03
1" Meter
$
37.38
$
37.02
1 1/2" Meter
$
62.08
$
61.48
2" Meter
$
84.29
$
83.47
3" Meter
$
132.74
$
131.45
4" Meter
$
193.14
$
191.26
6" Meter
$
333.69
$
330.45
8" Meter
$
494.23
$
489.43
10" Meter
$
674.61
$
668.06
Water Usage Rates ($/CCF)
Single Family Residential
Tier 1 - 0 to 10 CCF/month
$
0.94
$
0.93
Tier 2 - 11 to 50 CCF/month
$
1.35
$
1.34
Tier 3 - Over 50 CCF/month
$
1.76
$
1.74
Multi -Family and Non -Residential
All Water Usage
$
1.00
$
0.99
K:\WP\UTILITY RATES\W_WW\2015 W_WW Rate Increase\Attachment C Water Rates.xis