HomeMy WebLinkAboutAgenda Report - December 16, 2015 G-01 PHAGENDA ITEM Goo
&IM CITY OF LODI
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AGENDA TITLE: 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
MEETING DATE: December 16, 2015
PREPARED BY: Interim Public Works Director
RECOMMENDED ACTION: 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.
BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the past
few years. A summary of the past years water rate adjustments relative
to the Engineering News Record (ENR) index change is provided in
Attachment A. The purpose of this table is to demonstrate that past actual 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 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's 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 an average of 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.
Charles E. Swimley, Jr.
Interim Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
CES/RAY/tdb
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
RESOLUTION NO. 2015-229
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 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 1.975 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, 2016.
Dated: December 16, 2015
hereby certify that Resolution No. 2015-229 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 16, 2015, by the
following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS — None
NNIFE FERRAIOLO
ity Clerk
2015-229
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
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
EXHIBIT A
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
EXHIBIT A
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
Engineering
10
Public Hearing
Water Rates
Agenda Item G- 1
December 16, 2015
LM
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 2016 — 1.975% Increase
• 3,dYear of Structural Changes
• Proposition 218 - 3.0% Maximum
• 2015 ENR Index Change — 1.975%
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
2016
3.00
1.975
i TzTffisi Ure RTITF. I ME 2 R I I 'w
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
5 Bedroom
6 Bedroom
7 Bedroom
$31.26
$37.55
$45.00
$54.07
$64.85
$77.83
$93.33
$31.88
$38.29
$45.89
$55.14
$66.13
$79.37
$95.17
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)
$21.23
$0.00125/gal
$0.00167/gal
$0.00207/gal
Metered Residential Rate Change
Metered Residential Customers
Metered Other Customers
Flat Rate Residential Customers
10,896
1,950
4,495
Metered
Rate Reduction (4.94%)
$2.11
Monthly
Charge Reduced
$42.74
to $40.63
Based on 1,800 cubic feet per month
Rate Comparisons - Lo
City of Galt $24.93
City of Tracy $29.70
City of Lodi $40.63
City of Manteca $44.64
City of Stockton $52.31
City of Lathrop $65.56
Rate Comparisons - Regic
Agency Average Bi
City of Modesto $40.23
City of Lodi $40.63
City of Sacramento $42.33
City of Brentwood $67.03
City of Oakland $111.08
City of San Mateo $123.58
City of Burlingame $135.59
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Please immediately confirm receipt
o, f this, fax by calling 333-6702
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
f 6
PAMELA M. FARRIS ELENA STODDARD
DEPUTY CITY CLERK ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Emailed to the Sentinel at dianer@lodinews.com at Oirriey on I! Gate) (pages)
INS Phoned to confirm receipt of all.pages at (tlrne) . E PMF .{iWals)
forms\advins.doc
DECLARATION OF POSTING
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.
PAMELA M. FARRIS
DEPUTY CITY CLERK
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
ELENA STODDARD
ADMINISTRATIVE CLERK
WAdministration\CLERK\Public Hearings\AFFADAVITS\DECPOSTPW.DOC
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: December 16, 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
EXII J B i T A
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:
'e
nifer M, erraiolo
Clerk
Dated: November 4, 2015
Approv d as to form:
f
a ice D. Mag ich
C I:t
J:CLERK\PUBLICHEARING\NOTICES\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
Future
Bale
Calling
(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
(3)
-Ir-FaWrWftW-eWHng
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