HomeMy WebLinkAboutAgenda Report - June 5, 1996 (90)AGENDA TITLE: Authorize Water Utility Analysis
MEETING DATE: June 5, 1996
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council direct staff to prepare a comprehensive report on the water utility and
authorize the City Manager to execute a contract amendment with Bartle Wells Associates
(the firm performing the wastewater utility rate analysis) to perform a rate analysis.
BACKGROUND INFORMATION: The condition and needs of the City's water system have been reported to the
City Council and the public in a series of Council meetings, written reports and public
notifications over the past three years. However, based on recent events and
discussion with the Industrial Group of the Chamber of Commerce, staff is
recommending another course of action, as described below.
A major reason for this recommendation is that the reports mentioned above are out of date in terms of both fiscal issue
and capital and operating requirements. Much of this has to do with State water -quality requirements, in particular DBCP
and PCE/TCE. Both involve legal issues which have been discussed with the City Council in closed sessions. The fiscal
impact of these issues is not well defined, which is necessary for proper fiscal planning. How these issues are resolved,
along with the impact of the new water storage tank and the ongoing efforts of San Joaquin County in the area of water
supply, all need to be considered together.
Maintaining a water system that provides residents and businesses with adequate supplies of safe water at the least
possible cost is vital to Lodi. Accordingly, the City needs to prepare a comprehensive report on the water system
addressing the following issues:
• Current and projected water requirements to meet the needs of the community
• Water -quality standards with strategies and policies to be used to meet these standards
• Current and projected state of water system infrastructure
• Methodology to be used by the City to allocate capital and operating costs to customers
• Policies needed to direct the long-term operation and financing of the water system
Staff proposes to prepare this report in-house with some assistance from the private sector. The report will be managed
and coordinated by City staff. Much of the previous work will be updated by staff. Assistance from the private engineer
who performed most of the water system work for the 1991 General Plan Update, Harold Welborn, will be utilized to update
that work and coordinate long-range planning with the PCE/TCE consultants and with San Joaquin County on water supply
issues.
The fiscal work will be guided by City staff, both in Public Works and the Electric Utility Rates and Resources Section with
the assistance of the Finance Department. The "number crunching" and development of a computer-based rate model
will be handled by specialists from the private sector. The City Council recently authorized the City Manager to execute a
professional services contract (up to $18,000) for a wastewater rate analysis. The firm selected for the wastewater work,
Bartle Wells Associates, is fully qualified to do both studies. /?
FUNDING: $25,000, Water Fund /
JJa k L. Ronsko
L____
lic Works Director
Pu
Prepared by Richard C. Prima, Jr., City Engineer
cc: Water/Wastewater Superintendent
Electric Utility Director
APPROVED:
H. Dixon Flynn -- City nager
WTRRTANL.DOC 05/28W