HomeMy WebLinkAboutAgenda Report - December 17, 2014 G-02 PHAGENDA ITEM G.'Z
CITY OF LODI
• COUNCIL COMMUNICATION
TM
AGENDA TITLE: Public Hearing 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: December 17, 2014
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Public hearing 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 pre -approved.
On July 16, 2014, City Council approved a restructured water rate schedule to be implemented
over the three-year period from 2014 through 2016. Three principal elements of the restructuring
were a decrease in residential (3/4 -inch meter size) monthly base charge, a decrease in the three -
tiered residential commodity charge, and an increase in the single -tiered non-residential and multi-
family commodity charge. In addition, the Council approved increases to the monthly base charge
for meters two inches and larger that serve the larger industrial, commercial, multi -family, and
school customers. A summary of these approved water rates is provided in Attachment B. This
rate schedule is revenue neutral relative to the proposed newly indexed July 2014 water rates, but
includes the beginning of the proposed three-year phased changes to the rate structure. These
rate schedules reflect the second and third year of the three-year rate structure phasing, as well as
the maximum potential rate adjustment due to ENR indexing of three percent.
On May 7, 2014, City Council approved a five-year (2015 through 2019) 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 three
percent. The previous year (2014) ENR index change was two percent and staff is recommending
a water rate increase of two percent. A summary of current and proposed rates for flat rate and
usage -based rate customers is provided in Attachment C. For a residential customer 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 residential customer using 1,800 cubic feet of water per month will
see a decrease from $43.46 to $42.74 or $0.72 per month, as a result of the restructuring
mentioned in the previous paragraph.
APPROVED:`
Ste rt a er, ty Manager
KAWP\UTILITY RATES\W WW\2015 WWW Rate Increase\CCPH WaterRates2015.doc 12/8/2014
Public Hearing 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
December 17, 2014
Page 2
Public Works uses a Water Utility Financial Plan (Plan) to evaluate financial operations of the
utility. A copy of the Plan is provided as Attachment D. The Plan includes the past year's actual
revenues and expenditures and a five-year forecast of the same. Line 4 presents the revenue
increases required to support expected operations, capital maintenance, debt service and reserves
expenditures. For Fiscal Year 2015 and 2016, staff recommends two percent each year although
the Proposition 218 approval programmed three percent in each of those years. For Fiscal Years
2017 through 2018, the required revenue increases are expected to be two and one-half percent
compared to the programmed three percent. Line 31 lists the 25 percent operating reserve based
upon expenditures for cost of services, personnel, operations and maintenance. Line 33 presents
the debt service coverage ratio that is consistently above 3.0 compared to the required 1.25.
Line 38 is the portion of revenues that are assigned to future capital maintenance. These
expenditures are primarily for the Water Meter Program that is installing meters throughout the
service area and, at the same time, is replacing old and small diameter distribution piping. More
than 16,000 water meters will be installed and more than 26 miles of piping will be constructed
over the eight-year project from 2011 through 2018 at a projected total cost of more than $42
million. The Water Meter Program is a State -mandated program. Details of this and other capital
maintenance projects and costs are provided in Lines 47 through 98 of the Plan.
The Plan includes forecasts of future development that will pay impact mitigation fees to the utility.
For bond rating purposes, the assumed number of dwelling unit equivalents (DUE — one is equal to
the demand of a single family detached unit) added each year is 50 and this number is relatively
conservative. In Fiscal Year 2015, we expect to collect water impact mitigation fees for
approximately 50 DUE's from the Lodi Shopping Center, Reynolds Ranch Shopping Center, and
Rose Gate Subdivision. Future years should experience an increased level of development
activity above 50 DUE's per year.
Line 199 provides information regarding excess funds available for capital projects. These funds
are earmarked for completion of the Water Meter Program and other capital maintenance projects.
Available funds diminish over the next four years of the Plan as these projects are completed. In
light of the diminishing fund balance in the out years, the Water Meter Program was extended by
one year to keep water rate increases to a minimum. After Fiscal Year 2019 when the Water
Meter Program is completed, the Council will be asked to consider if rate levels should be
maintained in order to pay off Water Treatment Plant bonded debt.
FISCAL IMPACT: Increased revenues to the water utility are required to keep up with
cost of service increases and new State -mandated programs.
FUNDING AVAILABLE: Not applicable.
F. Wally 34ndelin
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
K:\WP\UTILITY RATES\W WW\2015 WWW Rate Increase\CCPH WaterRates20l5.doc 12/2/2014
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
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
22.58
Jan. 2015
Flat Rates ($/month)
$ 37.38
$
35.91
$
Percent Increase
$ 72.45
$
68.95
2.0%
Single Family Residential Unit ($/month)
$ 114.71
$
108.77
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
K:\WP\UTILITY RATES\W_WW\2015 W_WW Rate Increase\Attachment C Water Rates.xls
A
G I
H I
I I
J I
K
L
1
City of Lodi -- Water Utility
Financial Plan Summar
2
3
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
4
WATER •P :0
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer From/(To) RSF (18x)
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'ls., Services & Other
Debt Service
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
2.5%
Jan. 2014
7,042,985
12,755,908
86,686
456,932
-
-
13,299,526
780,000
5,000,000
1,658,124
2,356,000
635,000
3,051,000
2,355,229
15,835,352
4,507,158
1,706,000
2,801,158
3.12
2.0%
Jan. 2015
4,507,158
13,028,000
97,000
2,353,000
-
109,000
15,587,000
780,000
6,000,000
-
2,028,000
664,000
3,052,000
2,307,811
14,831,811
5,262,347
1,631,000
3,631,347
4.06
2.0%
Jan. 2016
5,262,347
13,314,000
100,000
55,000
-
109,000
13,578,000
780,000
7,000,000
-
2,098,000
693,000
3,140,000
2,306,561
16,017,561
2,822,786
1,678,000
1,144,786
3.10
2.5%
Jan. 2017
2,822,786
13,640,000
55,000
57,000
-
109,000
13,861,000
780,000
4,700,000
-
2,170,000
723,000
3,230,000
2,308,061
13,911,061
2,772,725
1,726,000
1,046,725
3.14
2.5%
Jan. 2018
2,772,725
14,046,000
44,000
59,000
-
109,000
14,258,000
780,000
6,000,000
-
2,244,000
754,000
3,324,000
2,305,611
15,407,611
1,623,114
1,776,000
(152,886)
3.22
2.5%
Jan. 2019
1,623,114
14,425,000
65,000
61,000
-
109,000
14,660,000
780,000
3,000,000
-
2,320,000
787,000
3,419,000
2,307,111
12,613,111
3,670,003
1,827,000
1,843,003
3.30
5
7
8
9
10
11
12
13
14
15
16
17
18
19
21
22
23
25
27
28
29
30
31
32
33
R345
•
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
Expenditures
Water Meter/Main Install. Project
Water Taps
Miscellaneous Water Mains
Commercial Meter Replacements
Financial System Replacement
City Hall Annex
3,817,688
6,707,879
31,605
768,120
-
8,637
7,516,241
6,836,000
32,000
-
-
250,000
-
3,365,416
6,000,000
49,000
256,400
-
-
6,305,400
5,487,000
75,000
-
5,000
250,000
625,000
1,848,816
7,000,000
44,000
244,000
-
-
7,288,000
6,026,000
75,000
501000
5,000
-
-
1,971,816
4,700,000
33,000
246,000
-
-
4,979,000
4,206,000
77,000
51,000
5,000
-
-
1,639,816
6,000,000
14,000
248,000
-
-
6,262,000
4,981,000
79,000
53,000
5,000
-
-
65,816
3,000,000
2,000
250,000
-
-
3,252,000
2,076,000
81,000
54,000
5,000
-
-
36
37
38
39
40
41
42
43
44
47
48
49
t58
A
G I
H I
I I
J I
K
L
1
City of Lodi -- Water Utility
Financial Plan Summar
2
3
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
59
GAC & Meter Repl (DBCP)
UWMP Update
Fire Station 2 Water Main
Meter Fixed Network
MSC/Kofu Parking Lot
Debenedetti Enclosure
Sacramento Street
Southwest Gateway Water Tank
Surface Water Treatment Plant PS Generator
Well
Well 2 -Replace Motor
Well 6R -Pump Rehab/Rept
Well 5 -Pump Rehab & Electrical Upgrade
Well 8 -Pump Rehab, Electrical Upgrade & Chlorination
Well 10 - Pump Rehab
Well 11
Well 12 -Pump Rehab/Rept
Well 13 -Pump Rehab & Electrical Upgrade
Well 14 -Pump Rehab/Rept
Well 15 -Pump Rehab/Rept
Well 16 -Pump Rehab/Electrical Upgrade
Well 17 -Pump Rehab/Electrical Upgrade
Well 18 -Pumpb Rehab/Electrical Upgrade
Well 19 -Pump Replacement
Well 20 -Pump Rehab/Electrical Upgrade
Well 24 - Pump Rehab & Electrical Upgrade
Well Site Improvements
Vehicles/Equipment
Total Expenditures
Ending Balance
324,000
-
25,000
1,000
64,635
21,182
119,695
-
-
-
-
116,000
-
-
-
-
-
-
-
-
-
-
-
4,000
-
135,000
-
31,000
7,968,513
3,365,416
300,000
-
-
-
-
-
-
-
-
-
-
-
145,000
245,000
120,000
-
-
135,000
-
-
-
-
40,000
-
145,000
-
100,000
150,000
7,822,000
1,848,816
300,000
50,000
-
-
-
-
-
-
300,000
166,000
100,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
93,000
7,165,000
1,971,816
300,000
-
-
-
-
-
-
200,000
-
-
-
-
-
-
-
175,000
256,000
-
-
-
-
-
-
-
-
-
-
41,000
5,311,000
1,639,816
300,000
-
-
-
-
-
-
2,000,000
-
-
-
-
-
-
-
-
-
-
174,000
184,000
-
-
-
-
-
-
-
60,000
7,836,000
65,816
300,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
215,000
199,000
-
-
-
-
-
43,000
2,973,000
344,816
60
62
63
64
65
66
67
68
69
70
71
73
75
76
77
78
79
80
81
82
83
84
85
86
90
94
98
101
102
103
104
IMF WATER FACILITIES (182)
Beginning Balance
Revenues
Water Impact Mitigation Fees
Interest Earnings
Total Revenues
Expenditures
Transfer to Fund 181 for Well 27
Transfer to Operations Fund 180 for Debt Service
Total Expenditures
(6,846)
60,001
407
60,408
49,755
-
49,755
3,807
109,000
-
109,000
-
109,000
109,000
3,807
109,000
-
109,000
-
109,000
109,000
3,807
109,000
-
109,000
-
109,000
109,000
3,807
109,000
-
109,000
-
109,000
109,000
3,807
109,000
-
109,000
-
109,000
109,000
105
106
107
108
111
112
113
122
123
125
126
A
G
I H
I I
I J
I K
L
1
2
City of Lodi -- Water Utility
Financial Plan Summar
3
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
127
128
176
Ending Balance
Owed Fund 180 for Debt Service
3,807
5,344,000
3,807
6,774,000
3,807
8,203,000
3,807
9,633,000
3,807
11,061,000
3,807
12,490,000
177
178
179
180
181
Beginning Balance
-
-
-
-
-
-
182
Revenues
183
Transfer In from 180
-
-
-
-
-
-
184
185
Total Revenues
-
-
-
-
-
-
186
Expenditures
187
Transfer Out to 180
-
-
-
-
-
-
188
189
Total Expenditures
-
-
-
-
-
-
190
191
Ending Balance
-
-
-
-
-
-
192
193
194
Aggregate End-of-Year Balance *
10,231,000
9,470,000
7,153,000
6,771,000
4,048,000
6,374,000
195
Operating Reserve (25%)
1,706,000
1,631,000
1,678,000
1,726,000
1,776,000
1,827,000
196
Restricted DS Reserve
2,355,000
2,355,000
2,355,000
2,355,000
2,355,000
2,355,000
197
2010 COP Proceeds
-
-
-
-
-
-
198
Rate Stabilization Fund
-
-
-
-
-
-
199
Net Available for Capital Projects
6,170,000
5,484,000
3,120,000
2,690,000
(83,000)
2,192,000
202
204
205
City of Lodi -- Water Utility
Financial Plan Assumptions
206
207
208
209
210
211
212
213
214
215
216
217
218
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Customer Account Assumptions
No. of DUs/Accounts
No. of 3/4" Eq. Mtrs.
No. of New Connections
Customer Growth Rate
Water Mitigation Impact Fee
3.0%
3.4%
4.5%
2.5%
2.0%
23,506
25,554
50
0.20%
3.0%
3.4%
4.5%
2.0%
2.0%
23,556
25,604
50
0.20%
3.0%
3.4%
4.5%
2.0%
2.5%
23,606
25,654
50
0.19%
3.0%
3.4%
4.5%
2.5%
2.0%
23,656
25,704
50
0.19%
3.0%
3.4%
4.5%
2.5%
2.0%
23,706
25,754
50
0.19%
3.0%
3.4%
4.5%
2.5%
2.5%
23,756
25,804
50
0.19%
A G I H I I I J I K L
1
City of Lodi -- Water Utility
Financial Plan Summar
2
3
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
219
Residential $ 1,263 $ 1,263 $ 1,263 $ 1,263 $ 1,263 $ 1,263
Non -Residential 3,103 3,103 3,103 3,103 3,103 3,103
220
Cell: Al2
Comment: Tap fees, DBCP reimbursements, sale of City property.
Cell: A14
Comment: Future growth share of debt service.
Cell: A45
Comment: Transfer to IMF Fund 182 for water plant design expense.
Cell: A46
Comment: Loan to IMF Fund 182 for Well 27 project.
Cell: A109
Comment: Transfer in from Capital fund 180 for past water plant design expense.
Cell: A110
Comment: Loan from Capital Fund 180 for Well 27 project.
Cell: A120
Comment: Transfer out to General City Facilities IMF for past General Plan expense.
Cell: A121
Comment: Transfer to Capital Fund 180 for water facilities constructed before 1991 with capacity to serve new development.
Cell: A122
Comment: Transfer to Capital Fund 180 for Well 27 project.
RESOLUTION NO. 2014-240
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING PRE -APPROVED ENGINEERING NEWS
RECORD ADJUSTMENT INDEX FOR USAGE -BASED
AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL AND INDUSTRIAL CUSTOMERS
WHEREAS, Resolution No. 2014-75 approved annual water rate increases in an
amount not to exceed the percentage change in the Engineering News Record (ENR)
Twenty Cities Annual Average Index, or three percent, beginning 2015 through January
2019. A Proposition 218 procedure was conducted that validated this action; and
WHEREAS, staff has regularly updated the Water Utility Financial Plan with the
assistance of the The Reed Consulting Group, Inc., of Sacramento; and
WHEREAS, the current water rate adjustment reflects a 2.0 percent increase.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
set pre -approved Engineering News Record adjustment index for usage -based and flat
water rates for residential, commercial and industrial customers, as outlined on
Exhibit A, with the effective date of the increase to be January 1, 2015.
Dated: December 17, 2014
I hereby certify that Resolution No. 2014-240 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 17, 2014, by the
following vote:
AYES: COUNCIL MEMBERS — Chandler, Kuehne, Nakanishi, and
Mayor Johnson
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NIFER ROBISON
ity Clerk
2014-240
Exhibit A
City of Lodi -- Water Utility
current and Proposed water Rates
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
]an. 2015
$ 23.26
Current
22.58
Jan. 2015
Flat Rates ($/month)
$ 37.38
$
35.91
$
Percent Increase
$ 72.45
$
68.95
2.0%
Single Family Residential Unit ($/month)
$ 114.71
$
108.77
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
]an. 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
W:\clerk\aaPDFimages\121714\Copy of Attachment C Water Rates.xls
r
Water Rate Setting
• May 2014 - Council Adopted 5 -Year Schedule of
Rate Adjustments
• ENR Index or Maximum 3%
• Proposition 218 Procedure Affirmed Schedule
• Financial Model Used to Analyze Rate Changes
Recommendation
• January 2015 — 2.0% Increase
2ndYear of Structural Changes
• Proposition 218 - 3.0% Maximum
• 2014 ENR Index Change — 2.0%
2009 3.10 0
2010 0.73 0
2011 5.98 2.0
2012 2.53 2.2
2013 2.50 2.5
2014 3.30 2.5
2015 3.00 2.0
Recommended Water Flat Rates
40
Residential Metered Water Rates
Fixed Monthly Service Charge (3/4 inch)
• Metered charges:
— Tier 1 (Up to 7,480 gals/month)
— Tier 2 (7,480-37,400 gals/month)
— Tier 3 (>37,400 gals/month)
$22.58
$0.00128/gal
$0.00180/gal
$0.00220/gal
Metered Residential Rate Change
Metered Residential Customers
Metered Other Customers
Flat Rate Residential Customers
9.991
1,680
5.400
Metered
Rate Reduction (1.7%)
$0.72
Monthly
Charge Reduced
$43.46
to $42.74
Rate Comparisons - Lo
City of Galt $24.51
City of Lodi $43.05
City of Stockton $51.42
City of Manteca $44.64
City of Lathrop $65.56
City of Tracy $29.70
Nri Rate Comparisons - Regic
Agency Average Bi
City of Sacramento $42.33
City of Lodi $42.74
City of Modesto $43.05
City of Brentwood $65.04
City of Oakland $69.81
City of San Mateo $96.93
City of Burlingame $127.84
Duestic
:r4o l 91 a t•
Please immediately confirm receipt
of this fax
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
421717'�� yn'_�
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 0he). a (date) ).
LNS Phoned to confirm redeipt of all paged at ) E5 JW (initials)
3'
tormsNaavmsr w. aoc
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.
44?m� XLZA li;�
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
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 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:
4yJfiferobiClerk
Dated: December 3, 2014
rJaqpnice
d. as to form:
f
t
D..agdich
City Attorney
J:CLERK\PUBLICHEARING\NOTICES\PH NOTICE publication WaterRales.doc 12/3/14
Exhibit A
City of Lodi -- Water Utility
%-urrent ana rrvjjub=u YYdLCI RQLCJ
Current Jan. 2015
Flat Rates ($/month)
$
Percent Increase
$
Single Family Residential Unit ($/month)
$ 37.38
1 Bedroom $
30.65 $
2 Bedroom $
36.81 $
3 Bedroom $
44.12 $
4 Bedroom $
53.01 $
5 Bedroom $
63.58 $
6 Bedroom $
76.30 $
7 Bedroom $
91.50 $
Multi -Family Residential Unit ($/month)
$
1 Bedroom $
26.31 $
2 Bedroom $
31.56 $
3 Bedroom $
37.88 $
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
2.0%
31.26
37.55
45.00
54.07
64.85
77.83
93.33
26.84
32.19
38.64
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.x1s