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Home My WebLink AboutAgenda Report - May 6, 2015 C-17 PHCAGENDA ITEM v,17 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Set Public Hearing for June 17, 2015, to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Wastewater Rates for Residential, Commercial and Industrial Customers MEETING DATE: May 6, 2015 PREPARED BY: Public Works Director RECOMMENDED ACTION: Set public hearing for June 17, 2015, to consider adopting resolution setting pre -approved Engineering News Record adjustment index for wastewater rates for residential, commercial and industrial customers. BACKGROUND INFORMATION: City Council, on May 7, 2014, approved a program of future wastewater and water rate increases using an Engineering News Record — 20 Cities Average (ENR) based indexing, capped at 3 percent maximum. A Proposition 218 procedure was conducted that validated these actions. Staff has regularly updated the Wastewater Utility Financial Plan, and a copy of the current Financial Plan is attached as Exhibit A. The recommended rate adjustments in the Financial Plan are 2.8 percent beginning July 1, 2015. The rates for this next year, attached as Exhibit B, reflect an increase of 2.8 percent, which is lower than the 3 percent capped maximum. The table below reflects the history and future cap on wastewater rate adjustments. July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 July 2018 Cap ENR Index Approved/ Recommended 5.0% 2.9% 3.0% 2.8% 2.8% 2.5% 3.0% 2.6% 2.5% 3.0% 2.8% 2.8% 3.0% 3.0% 3.0% FISCAL IMPACT: Increased revenues to the wastewater utility are required to keep up with cost of service increases and new mandated costs. FUNDING AVAILABLE: Not applicable. k' J" 6 -11 S�_A_ F. Wally Sbndelin Public Works Director FWS/RAY/eb Attachments cc: Information Systems Manager APPROVED: _ -Stephen Schwab�fuer, City Manager KAWP\UTILITY RATES\W WW\2015 W WW Rate Increase\CCSetPH WW Rates 2015.doc 4/24/2015 City of Lodi -- Wastewater Utility Financial Plan Summary Beginning Balance Revenues Wastewater Sales Infrastructure Replacement Interest Earnings Other Revenues Transfer In for Debt Service (172) Transfer In for Debt Service (173) Transfer From/(To) Rate Stabilization Fund (174) Total Revenues Expenditures Operating Transfers Out (to GF) Transfer Out to Gen'I Fund (Cost of Services) Transfer Out to WW Capital Outlay (171) Transfer Out To WW Cap. Rsrv. (172) Administration & Other Plant Maintenance Sanitary System Maintenance Storm Drainage Maintenance Industrial System Maintenance 2003 Wastewater COP Debt Service 2004 Wastewater COP Debt Service 2007 Wastewater COP Debt Service 2012 Wastewater Refinancing Total Expenditures Exhibit A FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 2.5% 2.8% 3% 3% 2% 1,029,408 5,252,978 4,656,953 5,588,953 4,076,853 14,691,000 15,132,000 15,616,000 16,116,000 16,470,000 15,000 58,000 103,000 122,000 92,000 209,000 215,000 221,000 228,100 235,300 31,000 31,000 63,000 63,000 63,000 65,000 150,000 150,000 152,000 152,000 15,011,000 15,586,000 16,153,000 16,681,100 17,012,300 1,068,000 1,068,000 1,068,000 1,068,000 1,068,000 - 5,000,000 3,800,000 6,500,000 2,500,000 1,229, 370 1,261,685 1,309,000 1,358,200 1,409,400 3,989,580 4,116,440 4,281,000 4,452,000 4,630,000 381,780 542,540 563,000 583,000 605,000 422,680 511,600 533,000 555,000 577,000 25,020 15,760 16,000 16,000 16,000 98,000 98,000 98,000 98,000 98,000 1,603,000 1,607,000 1,606,000 1,614,000 1,617,000 1,970,000 1,961,000 1,947,000 1,949,000 1,949,000 10,787,430 16,182,025 15,221,000 18,193,200 14,469,400 Ending Balance 5,252,978 4,656,953 5,588,953 4,076,853 6,619,753 Operating Reserve (25%) 2,204,000 2,305,000 2,369,000 2,436,000 2,505,000 25% Available Balance 3,048,978 2,351,953 3,219,953 1,640,853 4,114,753 Debt Service Coverage (min. = 1.20) 2.17 2.20 2.30 2.36 2.38 without COST 2.46 2.49 2.59 2.65 2.67 Beginning Balance 11,628,493 3,404,921 1,511,350 1,848,778 1,183,207 Revenues Transfer In (from 170) Transfer In (from 170-Deprec.) Other Revenue Investment Earnings Total Revenues Expenditures Financial System Replacement Storm Impry Elm to Pine Alley Sewer/Laurel Storm Project Misc. System Relocations Misc. Wastewater Taps Collect. System Capac. Enhanc. Projects Wastewater Main Replac./Lining Proj. City Hall Annex Storm Drain Trash Handling System Shady Acres/Vinewood Storm Water Pump Rehab Lodi Lake Outfall Line Realignment of Domestic & Industrial pipe Domestic Trunk Assessment and Rehab Vehicles /Equipment White Slough Compliance Studies & Rpts Plant Maintenance Structural Corrosion Repair/UV Upgrade Feasibility Studies/ Pre-desig Influent Screening Replacement Aeration Diffuser Replacement Cloth Filter Media Replacement Electrical Upgrades/SCADA Upgrades Admin/Ops Building Improvements Primary Chain & Flights Dewatering screwpress Irrigation Conveyance & Pumping Construction Fence Repairs/Upgrades Digester #1 & #2 Roof Repairs Miscellaneous Future Projects Total Expenditures Ending Balance Exhibit A FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 - 5,000,000 3,800,000 6,500,000 2,500,000 96,429 96,429 96,429 96,429 96,429 96,429 5,096,429 3,896,429 6,596,429 2,596,429 250,000 - - - - 72,000 - - - - 33,000 - - - - 35,000 35,000 36,000 38,000 39,000 40,000 40,000 42,000 43,000 45,000 - 200,000 21,000 216,000 22,000 2,000,000 - - - - 580,000 - - - - - 700,000 - - - - 400,000 - - - - 100,000 - - - - 1,100,000 - - - - - 200,000 2,000,000 - 545,000 660,000 156,000 162,000 169,000 270,000 300,000 - - - - 1,500,000 - - - 800,000 2,500,000 2,500,000 - - - 500,000 - - - 30,000 - 32,000 - 50,000 - - 2,163,000 2,250,000 750,000 - - - - 45,000 - - - - - 1,000,000 - - - 450,000 - - - - - 25,000 - - 28,000 3,100,000 - - - - 100,000 100,000 104,000 108,000 112,000 8,320,000 6,990,000 3,559,000 7,262,000 2,665,000 3,404,921 1,511, 350 1,848,778 1,183, 207 1,114,636 Exhibit A Beginning Balance FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 WASTEWATER CAPITAL RESERVE (172) Beginning Balance 3,134,509 3,134,509 3,134,509 3,134,509 3,134,509 Revenues 149,000 149,000 149,000 149,000 149,000 Interest Earnings 31,000 31,000 63,000 63,000 63,000 Total Revenues 31,000 31,000 63,000 63,000 63,000 Expenditures 150,000 150,000 152,000 152,000 152,000 Capital Projects - - - - - Transfer Out to 170 (for Debt Service) 31,000 31,000 63,000 63,000 63,000 Total Expenditures 31,000 31,000 63,000 63,000 63,000 Ending Balance 3,134,509 3,134,509 3,134,509 3,134,509 3,134,509 Restricted Debt Service Reserve 2,378,506 2,378,506 2,378,506 2,378,506 2,378,506 2007 COP Proceeds (w/ fiscal agent) 756,003 756,003 756,003 756,003 756,003 Cash Deficit (amt. owed for past DS) - - - - - Beginning Balance 64,653 149,653 149,653 151,653 151,653 Revenues Wastewater IMF 149,000 149,000 149,000 149,000 149,000 Wastewater IMF from PCE/TCE & WTP Interest Earnings 1,000 1,000 3,000 3,000 3,000 Total Revenues 150,000 150,000 152,000 152,000 152,000 Expenditures Transfer Out (to 170 for Debt Service) 65,000 150,000 150,000 152,000 152,000 Capital Projects - - - - - Total Expenditures 65,000 150,000 150,000 152,000 152,000 Ending Balance 149,653 149,653 151,653 151,653 151,653 Owed to Fund 170 for Debt Service 3,173,000 3,986,000 4,798,000 5,613,000 6,430,000 WW Rate Stabilization Fund (174) Beginning Balance 500,000 500,000 500,000 500,000 500,000 Transfer In from 170 - - - - - Total Revenues - - - - - Expenditures Transfer Out to 170 - - - - - Total Expenditures - - - - - Ending Balance 500,000 500,000 500,000 500,000 500,000 Exhibit A FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 Aggregate End -of -Year Balance 12,442,000 9,952,000 11,224,000 9,046,000 11,521,000 Operating Reserve (25%) 2,204,000 2,305,000 2,369,000 2,436,000 2,505,000 Restricted DS Reserve 2,378,506 2,378,506 2,378,506 2,378,506 2,378,506 2007 COP Proceeds 756,003 756,003 756,003 756,003 756,003 Rate Stabilization Fund 500,000 500,000 500,000 500,000 500,000 Net Available for Capital Projects 6,603,491 4,012,491 5,220,491 2,975,491 5,381,491 City of Lodi -- Wastewater Utility Financial Plan Assumptions FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 Financia/ Assumptions General Inflation 3.0% 3.0% 3.0% 3.0% 3.0% Labor Inflation 3.4% 3.4% 3.4% 3.4% 3.4% Material/Energy Inflation 4.5% 4.5% 4.5% 4.5% 4.5% Construction Inflation 4.0% 4.0% 4.0% 4.0% 4.0% Interest Earnings 1.0% 1.0% 2.0% 2.0% 2.0% Cust, Growth (SSUs) 50 50 50 50 50 Wastewater Mitigation Impact Fee Residential 3/4" $ 1,720 $ 1,720 $ 1,720 $ 1,720 $ 1,720 Non -Residential 3/4" 4,225 4,225 4,225 4,225 4,225 Exhibit B City of Lodi -- Wastewater Utility current ana Proposea wastewater Rates Notes: (1) Winter water usage determined as average monthly usage from December through February. (2) Flat wastewater rates for schools are to be determined on the basis of 18 students per SSU. Current July 2015 Residential Percent Increase 2.8 Flat Rates ($/month) 1 Bedroom $ 26.48 $ 27.22 2 Bedroom $ 35.30 $ 36.29 3 Bedroom $ 44.13 $ 45.36 4 Bedroom $ 52.95 $ 54.43 5 Bedroom $ 61.78 $ 63.51 6 Bedroom $ 70.60 $ 72.58 7 Bedroom $ 79.43 $ 81.65 Mobile Homes Any Size $ 26.48 $ 27.22 Usage -Based Rates (1) Service Charge ($/month for 3/4" water meter) $ 24.11 $ 24.78 Usage Charge ($/CCF) (1) $ 2.75 $ 2.82 Non -Residential ($/month) (2) Moderate Strength (per SSU) $ 35.30 $ 36.29 High Strength Flow (per MG, annual basis) $ 3,574.60 $ 3,674.68 BOD (per 1,000 lbs, annual basis) $ 589.90 $ 606.41 SS (per 1,000 lbs, annual basis) $ 368.85 $ 379.17 Grease Interceptor & Septic Holding Tank Waste within City Limits (per 1,000 gal.) $ 312.34 $ 321.08 Septic (only) Holding Tank Waste Outside City Limits (per 1,000 gal.) $ 663.06 $ 681.63 Disposal to Storm Drain System (per MG) $ 328.09 $ 337.28 Notes: (1) Winter water usage determined as average monthly usage from December through February. (2) Flat wastewater rates for schools are to be determined on the basis of 18 students per SSU. FI:00)-"Vj </pp 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: PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS PUBLISH DATE: SATURDAY, MAY 16, 2015 . 0 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO LNS ACCT. #0510052 DATED: THURSDAY, MAY 7, 2015 JENNIFER M. FERRAIOLO, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK PAMELA M. FARRIS DEPUTY CITY CLERK ELENA STODDARD ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File Emailed'to the Sentinel at dorar@Iodinew&com at (time) on (date) pages LNS Rhoned to confirm receipt of all pages at (time) _ES ' _PMF (initials) forms\advins.doc CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi 44 NOTICE OF PUBLIC HEARING Date: June 17, 2015 Time: 7:00 p.m. For information regarding this notice please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, June 17, 2015, 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) Pre -Approved Engineering News Record Adjustment Index for Wastewater 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 West 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, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: nniftFee ityCl Dated: May 7, 2015 Approve as rm: Janice D. Magdich City Attorney N: Wdministration\CLERMPublic Hearings\NOTICES\NotPW.doc CLERMPUBHEAR\NOTICES\NotPW.doc 5/7/15 EXHIBIT A City of Lodi -- Wastewater Utility Current and Proposed wastewater Kates Notes: (1) Winter water usage determined as average monthly usage from December through February. (2) Flat wastewater rates for schools are to be determined on the basis of 18 students per SSU. Current July 2015 Residential Percent Increase 2.8 Flat Rates ($/month) 1 Bedroom $ 26.48 $ 27.22 2 Bedroom $ 35.30 $ 36.29 3 Bedroom $ 44.13 $ 45.36 4 Bedroom $ 52.95 $ 54.43 5 Bedroom $ 61.78 $ 63.51 6 Bedroom $ 70.60 $ 72.58 7 Bedroom $ 79.43 $ 81.65 Mobile Homes Any Size $ 26.48 $ 27.22 Usage -Based Rates (1) Service Charge ($/month for 3/4" water meter) $ 24.11 $ 24.78 Usage Charge ($/CCF) (1) $ 2.75 $ 2.82 Non -Residential ($/month) (2) Moderate Strength (per SSU) $ 35.30 $ 36.29 High Strength Flow (per MG, annual basis) $ 3,574.60 $ 3,674.68 BOD (per 1,000 lbs, annual basis) $ 589.90 $ 606.41 SS (per 1,000 lbs, annual basis) $ 368.85 $ 379.17 Grease Interceptor & Septic Holding Tank Waste within City Limits (per 1,000 gal.) $ 312.34 $ 321.08 Septic (only) Holding Tank Waste Outside City Limits (per 1,000 gal.) $ 663.06 $ 681.63 Disposal to Storm Drain System (per MG) $ 328.09 $ 337.28 Notes: (1) Winter water usage determined as average monthly usage from December through February. (2) Flat wastewater rates for schools are to be determined on the basis of 18 students per SSU. DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS On Thursday, May 7, 2015, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider adopting a resolution setting pre -approved Engineering News Record adjustment index for wastewater 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 WorkNet Office I declare under penalty of perjury that the foregoing is true and correct. Executed on May 7, 2015, at Lodi, California. ur, IN",_I - - JENNIFER M. FERRAIOLO CITY CLERK ELENA STODDARD ADMINISTRATIVE CLERK NA\Administration\CLERK\Public Hearings\AFFADAVITS\DECPOSTPW I .DOC •. CITY OF LODI r Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: June 17, 2015 e R Time: 7:00 p.m. i For information regarding this notice please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, June 17, 2015, 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) Pre -Approved Engineering News Record Adjustment Index for Wastewater 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 West 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, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: nnifer . Ferraiolo ity Clerk Dated: May 7, 2015 Approve as rm: Janice D. Magdich City Attorney RkAdministration\CLERMPublic HearingsWOTICE&NotPW.doc CLEMPUBHEAR\NOTICEMNotPW.doc 5/7/15 EXHIBIT A City of Lodi -- Wastewater Utility Current and Pr000sed Wastewater Rates Notes: (1) Winter water usage determined as average monthly usage from December through February. (2) Flat wastewater rates for schools are to be determined on the basis of 18 students per SSU. Current July 2015 Residential Percent Increase 2.8 Flat Rates ($/month) 1 Bedroom $ 26.48 $ 27.22 2 Bedroom $ 35.30 $ 36.29 3 Bedroom $ 44.13 $ 45.36 4 Bedroom $ 52.95 $ 54.43 5 Bedroom $ 61.78 $ 63.51 6 Bedroom $ 70.60 $ 72.58 7 Bedroom $ 79.43 $ 81.65 Mobile Homes Any Size $ 26.48 $ 27.22 Usage -Based Rates (1) Service Charge ($/month for 3/4" water meter) $ 24.11 $ 24.78 Usage Charge ($/CCF) (1) $ 2.75 $ 2.82 Non -Residential ($/month) (2) Moderate Strength (per SSU) $ 35.30 $ 36.29 High Strength Flow (per MG, annual basis) $ 3,574.60 $ 3,674.68 BOD (per 1,000 lbs, annual basis) $ 589.90 $ 606.41 SS (per 1,000 lbs, annual basis) $ 368.85 $ 379.17 Grease Interceptor & Septic Holding Tank Waste within City Limits (per 1,000 gal.) $ 312.34 $ 321.08 Septic (only) Holding Tank Waste Outside City Limits (per 1,000 gal.) $ 663.06 $ 681.63 Disposal to Storm Drain System (per MG) $ 328.09 $ 337.28 Notes: (1) Winter water usage determined as average monthly usage from December through February. (2) Flat wastewater rates for schools are to be determined on the basis of 18 students per SSU.