HomeMy WebLinkAboutAgenda Report - November 4, 2015 C-18 PHAGENDA ITEM '
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Set Public Hearing for December 16, 2015, 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
MEETING DATE: November 4, 2015
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Set public hearing for December 16, 2015, 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.
BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the past
few years. A summary of the past years water rate changes to the
Engineering News Record (ENR) index change is provided in
Attachment A. The purpose of this table is to demonstrate that 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.
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 three percent. The previous year ENR index change was 1.975 percent and staff
is recommending a water rate increase of 1.975 percent. A summary of current and proposed rates for flat rate
and usage -based rate customers is provided in Attachment B. For a resident still on the flat rate, the monthly
charge for a three-bedroom home will increase from $45 to $45.89 or $0.89 per month. A metered resident
using 1,800 cubic feet of water per month will see a decrease from $43.05 to $40.63 or $2.42 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.
F. Wally Sa6ffefin
Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
FWS/RAY/tb
Attachments
Attachment A
Programmed and Implemented Rate Adjustments
Water
Year
Programmed
Implemented
2009
3.10(1)
0
2010
0.73M
0
2011
5.98 (Z)
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)
2016
1.975 (3)
1.975 (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
Attachment B
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Future Rate Ceiling (2)
Current
Proposed
Potential
Potential
Potential
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan.2018)
(Jan.2019)
Rate Increase -->
1.975%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
31.26
$
31.88
$
32.84
$
33.83
$
34.84
2 Bedroom
$
37.55
$
38.29
$
39.44
$
40.62
$
41.84
3 Bedroom
$
45.00
$
45.89
$
47.27
$
48.69
$
50.15
4 Bedroom
$
54.07
$
55.14
$
56.79
$
58.49
$
60.24
5 Bedroom
$
64.85
$
66.13
$
68.11
$
70.15
$
72.25
6 Bedroom
$
77.83
$
79.37
$
81.75
$
84.20
$
86.73
7 Bedroom
$
99.33
$
101.29
$
104.33
$
107.46
$
110.68
Multi -Family (1)
1 Bedroom
$
26.84
$
27.37
$
28.19
$
29.04
$
29.91
2 Bedroom
$
32.19
$
32.83
$
33.81
$
34.82
$
35.86
3 Bedroom
$
38.64
$
39.40
$
40.58
$
41.80
$
43.05
Mobile Homes
Any Size
$
26.84
$
27.37
$
28.19
$
29.04
$
29.91
Non -Residential
Existing unmetered
Varies
+1.975%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi
Current and Proposed Usage -Based Water Rates
Future Rate Ceiling (3)
Current
(Jan. 2016)
Potential
Potential
Potential
(Jan. 2015)
(2)
(Jan. 2017)
(Jan. 2018)
(Jan. 2019)
Rate Increase -->
1.975%
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
22.58
$
21.23
$
21.87
$
22.53
$
23.21
1" meter
$
35.91
$
33.34
$
34.34
$
35.37
$
36.43
1 1/2" meter
$
68.95
$
63.35
$
65.25
$
67.21
$
69.23
2" meter
$
108.77
$
99.53
$
102.52
$
105.60
$
108.77
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
22.58
$
21.23
$
21.87
$
22.53
$
23.21
1" meter
$
35.91
$
33.34
$
34.34
$
35.37
$
36.43
1 1/2" meter
$
68.95
$
63.35
$
65.25
$
67.21
$
69.23
2" meter
$
93.26
$
99.53
$
102.52
$
105.60
$
108.77
3" meter
$
160.61
$
183.98
$
189.50
$
195.19
$
201.05
4" meter
$
252.33
$
304.59
$
313.73
$
323.14
$
332.83
6" meter
$
476.15
$
605.85
$
624.03
$
642.75
$
662.03
8" meter
$
740.68
$
967.52
$
996.55
$
1,026.45
$
1,057.24
10" meter
$ 1,045.83
$
1,389.57
$
1,431.26
$
1,474.20
$
1,518.43
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.96
$
0.94
$
0.97
$
1.00
$
1.03
Tier 2 (11-50 CCF)
$
1.32
$
1.25
$
1.29
$
1.33
$
1.37
Tier 3 (>50 CCF)
$
1.68
$
1.55
$
1.60
$
1.65
$
1.70
Multi -Family and Non -Residential
(1)
All water usage
$
1.08
$
1.12
$
1.15
$
1.18
$
1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This rate schedule reflects the third year of the 3 -year rate structure phasing, as well as the adjustment
due to ENR indexing.
(3) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Please immediately confirm receipt
333-670 ----
CITY OF LODI
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER PRE -APPROVED ENGINEERING
NEWS RECORD ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT
WATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
CUSTOMERS
PUBLISH DATE: SATURDAY, NOVEMBER 7, 2015
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: JENNIFER M. FERRAIOLO, CITY CLERK
LNS ACCT. #0510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, NOVEMBER 5, 2015
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 dianer@lodinews.com at T% ._ (firne) on II , date] (pages)'
LNS Phoned to confirm re001 of all pag8s at €Floe] E.. _PMF :(hitters)
fortnAadvins.doc
PUBLIC HEARING TO CONSIDER PRE -APPROVED ENGINEERING NEWS
RECORD ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT WATER
RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, November 5, 2015, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider 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
Worknet Office
I declare under penalty of perjury that the foregoing is true and correct.
Executed on November 5, 2015, at Lodi, California.
-2
-/ ��
PAMELA M. FARRIS
DEPUTY CITY CLERK
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
ELENA STODDARD
ADMINISTRATIVE CLERK
NAAdministration\CLERK\Public Hearings\AFFADAVITS\DECPOSTPW.DOC
CITY OF LDDI
Carnegie Forum
305 West Pine Street, Lodi
LDate:
ICE OF PUBLIC HEARING
December 16,2015
7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
EX [-9` 1 B i T
NOTICE IS HEREBY GIVEN that on Wednesday, December 16, 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) 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:
nifer M, erraiolo
Clerk
Dated: November 4, 2015
Approv dwas to form:
4ice D. Mag ich
C
1CLERMPUBLICHEARINGWOTICE&PH NOTICE publication WaterRates.doc 10/29/15
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
ELdU
Current
Proposed
Potential
Potential
Potential
(Jan.2015)
(Jan.2016)
(Jan.2017)
(Jan. 2018)
(Jan.2019)
Rate Increase -->
1.975%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
31.26
$
31.88
$
32.84
$
33.83
$
34.84
2 Bedroom
$
37.55
$
38.29
$
39.44
$
40.62
$
41.84
3 Bedroom
$
45.00
$
45.89
$
47.27
$
48.69
$
50.15
4 Bedroom
$
54.07
$
55.14
$
56.79
$
58.49
$
60.24
5 Bedroom
$
64.85
$
66.13
$
68.11
$
70.15
$
72.25
6 Bedroom
$
77.83
$
79.37
$
81.75
$
84.20
$
86.73
7 Bedroom
$
99.33
$
101.29
$
104.33
$
107.46
$
110.68
Multi -Family (1)
1 Bedroom
$
26.84
$
27.37
$
28.19
$
29.04
$
29.91
2 Bedroom
$
32.19
$
32.83
$
33.81
$
34.82
$
35.86
3 Bedroom
$
38.64
$
39.40
$
40.58
$
41.80
$
43.05
Mobile Homes
Any Size
$
26.84
$
27.37
$
28.19
$
29.04
$
29.91
Non -Residential
Existing unmetered
Varies
+1.975%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi
Current and Proposed Usage -Based
Water Rates
Current (Jan. 2016)
Potential Potential Potential
Jan. 2015)
(2)
(Jan. 2017)
Jan. 2018)
(Jan. 2019
Rate Increase --> 1.975%
3.0% 3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 22.58
$
21.23
$
21.87
$
22.53
$
23.21
1" meter
$ 35.91
$
33.34
$
34.34
$
35.37
$
36.43
1 1/2" meter
$ 68.95
$
63.35
$
65.25
$
67.21
$
69.23
2" meter
$ 108.77
$
99.53
$
102.52
$
105.60
$
108.77
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 22.58
$
21.23
$
21.87
$
22.53
$
23.21
1" meter
$ 35.91
$
33.34
$
34.34
$
35.37
$
36.43
1 1/2" meter
$ 68.95
$
63.35
$
65.25
$
67.21
$
69.23
2" meter
$ 93.26
$
99.53
$
102.52
$
105.60
$
108.77
3" meter
$ 160.61
$
183.98
$
189.50
$
195.19
$
201.05
4" meter
$ 252.33
$
304.59
$
313.73
$
323.14
$
332.83
6" meter
$ 476.15
$
605.85
$
624.03
$
642.75
$
662.03
8" meter
$ 740.68
$
967.52
$
996.55
$
1,026.45
$
1,057.24
10" meter
$ 1,045.83
$
1,389.57
$
1,431.26
$
1,474.20
$
1,518.43
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.96
$
0.94
$
0.97
$
1.00
$
1.03
Tier 2 (11-50 CCF)
$ 1.32
$
1.25
$
1.29
$
1.33
$
1.37
Tier 3 (>50 CCF)
$ 1.68
$
1.55
$
1.60
$
1.65
$
1.70
Multi -Family and Non -Residential (1)
All water usage
$ 1.08
$
1.12
$
1.15
$
1.18
$
1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This rate schedule reflects the third year of the 3 -year rate structure phasing, as well as the adjustment
due to ENR indexing.
(3) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
. adjustments may be lower and would be tied to annual changes in the ENR index