HomeMy WebLinkAboutResolutions - No. 2010-123RESOLUTION NO. 2010-123
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING USAGE -BASED AND FLAT WATER AND
WASTEWATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
WHEREAS, the Council of the City of Lodi finds as follows:
The City of Lodi provides water supply and wastewater disposal service
to its citizens;
2. The City charges customers of these utilities a charge to fund the on-
going operation and maintenance of the water supply and wastewater
disposal service;
3. On July 15, 2009, Council approved wastewater rate increases of
25 percent effective July 16, 2009; 20 percent effective July 1, 2010;
10 percent effective July 1, 2011; and 5 percent effective July 1, 2012.
Council also approved an Engineering News Record — 20 Cities Average
(ENR) based indexing of wastewater rates beginning with FY 2012/13. A
proposition 218 procedurewas conducted that validated these actions;
4. On January 6, 2010, Council received advisory usage -based water and
wastewater residential rates for the purpose of research and customer
billing comparisons, as the City transitions to a metered water system to
comply with State law;
5. Staff recommends changing the date for implementing the annual water
rate adjustment to January 1 for each of the five years following
January 1, 2011. This change is recommended so that rate changes
occur at the lowest usage time of the year;
6. Staff recommends changing the water rate adjustment index from the
Consumer Price Index to the ENR, effective January 1, 2012, because
this index better reflects the combined inflationary effects of personnel,
materials and energy costs on the total operations of the water utility;
7. Staff recommends adopting usage -based and flat water rates for
residential customers as presented in Exhibit A to become effective
January 1,2011;
8. Staff recommends changing the multi -family and nonresidential usage -
based rate structure for meter sizes 1 inch and smaller to establish parity
with the residential customers, as presented in Exhibit A;
9. Staff recommends eliminating the "Infrastructure" and "PCE/TCE" line
item on the water utility bills, as was done for the wastewater utility bills
on July 15, 2009;
follows:
10. Staff recommends adopting usage -based and flat monthly wastewater
rates for residential and nonresidential customers as presented in
Exhibit B effective immediately. For customers paying a usage -based
water bill, the wastewater monthly rate will be determined based upon
their average monthlywater usage from the previous December, January,
and February. Wastewater monthly rates will be recalculated each year
and put into effect beginning with July billings each subsequent year;
11. The Council directed that notice of a hearing thereon be given to the
property owners and water service and wastewater disposal utility
customers in the City, with such notice to include, among other matters,
the information required to be included pursuant to California law;
12. Pursuant to California Constitution, Article XIIIC and Government Code
53755, such notice has been mailed to those property owners and
account holders, at least 45 days before the hearing, as evidenced by a
Certificate of Mailing on file with the City Clerk;
13. The Council also directed that notice of a hearing thereon be given with
such notice to include the information required to be included pursuant to
Government Code section 54354.5;
14. Such notice has been published once each week for two weeks, in
accordance with Government Code section 54354.5, in the Lodi News -
Sentinel as evidenced by Proofs of Publication on file with the City Clerk;
15. On July 21, 2010, the City Council conducted said public hearing, at
which time the City Council heard all objections and protests to the
proposed usage -based and flat water and wastewater rates for
residential, commercial and industrial customers;
16. Written protests against the proposed usage -based and flat water and
wastewater rates for residential, commercial and industrial customers
were not presented by a majority of the property owners and water and
wastewater utility customers; and
17. The proposed usage -based and flat water and wastewater rates for
residential, commercial and industrial customers are not discriminatory or
excessive, are sufficient under Government Code section 54515, comply
with the provisions or covenants of any outstanding revenue bonds of the
City payable from the revenues of the enterprise, comply with the
provisions of Title 5, Division 2, Chapter 6 of the Government Code, and
are in compliance with all other applicable law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Levy of Charges. Pursuantto Sections 13.08.010, 13.12.240, and
13.16.110 of the Lodi Municipal Code, the usage -based and flat water and wastewater
rates for residential, commercial, and industrial customers as attached hereto as
Exhibits and B are hereby approved.
Section 3. Subsequent Adiustments. As provided by Government Code
Section 53756, the rates shown in Exhibits A and B may be adjusted annually for a
period of five years by resolution beginning January 2012 through January 2016 for
water rates and July 2011 through July 2016 for wastewater rates, with Council approval
following, a public hearing, in an amount not to exceed the percentage change in the
Engineering News Record (ENR) Twenty Cities Annual Average Index or other index as
approved by the City Council by resolution. The adjustment shall not be made if it
causes rates to exceed the cost of service and Notice of the Adjustment shall be mailed
to each account not less than 30 days before the effective date of the adjustment.
Section 4. Effective Date. This resolution shall take effect from and after the
date of its passage.
Dated: July 21, 2010
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hereby certify that Resolution No. 2010-123 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 21, 2010, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and Mayor Katzakian
NOES: COUNCIL MEMBERS— Hitchcock and Mounce
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
2010-123
BI A
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City of Lodi -- Water Utility
Percent Increase -->
2.0%
3.5%
3.5%
3.-%
3.5%
3.-%
Flat Rates ($/month)
Single Family Residential Unit
($/month)
1 Bedroom
$ 27.98
$ 28.54
$
29.54
$
30.57
$
31.64
$
32.75
$
33.90
2 Bedroom
$ 33.61
$ 34.28
$
35.48
$
36.72
$
38.01
$
39.34
$
40.72
3 Bedroom
$ 40.28
$ 41.09
$
42.53
$
44.02
$
45.56
$
47.15
$
48.80
4 Bedroom
$ 48.40
$ 49.37
$
51.10
$
52.89
$
54.74
$
56.66
$
58.64
5 Bedroom
$ 58.06
$ 59.22
$
61.29
$
63.44
$
65.66
$
67.96
$
70.34
6 Bedroom
$ 69.67
$ 71.06
$
73.55
$
76.12
$
78.78
$
81.54
$
84.39
7 Bedroom
$ 83.58
$ 85.25
$
88.23
$
91.32
$
94.52
$
97.83
$
101.25
Multi -Family Residential Unit ($/month)
1 Bedroom
$ 24.02
$ 24.50
$
25.36
$
26.25
$
27.17
$
28.12
$
29.10
2 Bedroom
$ 28.81
$ 29.39
$
30.42
$
31.48
$
32.58
$
33.72
$
34.90
3 Bedroom
$ 34.57
$ 35.26
$
36.49
$
37.77
$
39.09
$
40.46
$
41.88
Metered Water Rates
Service Charge ($/month)
Single Family Residential (2)
Up to 3/4" Meter
$ 22.25
$ 22.70
$
23.50
$
24.30
$
25.15
$
26.05
$
26.95
1" Meter
$ 36.15
$ 36.85
$
38.15
$
39.50
$
40.90
$
42.35
$
43.85
11/2" Meter
$ 70.60
$ 72.00
$
74.50
$
77.10
$
79.80
$
82.60
$
85.50
2" Meter
$ 112.10
$ 114.35
$
118.35
$
122.50
$
126.80
$
131.25
$
135.85
Multi -Family andNon-Residential
(3)
5/8" Meter
$ 25.64
$ 22.70
$
23.50
$
24.30
$
25.15
$
26.05
$
26.95
3/4" Meter
$ 28.17
$ 22.70
$
23.50
$
24.30
$
25.15
$
26.05
$
26.95
1" Meter
$ 42.27
$ 36.85
$
38.15
$
39.50
$
40.90
$
42.35
$
43.85
11/2" Meter
$ 56.35
$ 57.50
$
59.50
$
61.60
$
63.75
$
66.00
$
68.30
2" Meter
$ 70.45
$ 71.85
$
74.35
$
76.95
$
79.65
$
82.45
$
85.35
3" Meter
$ 98.63
$ 100.60
$
104.10
$
107.75
$
111.50
$
115.40
$
119.45
4" Meter
$ 126.80
$ 129.35
$
133.90
$
138.60
$
143.45
$
148.45
$
153.65
6" Meter
$ 183.16
$ 186.80
$
193.35
$
200.10
$
207.10
$
214.35
$
221.85
8" Meter
$ 239.48
$ 244.30
$
252.85
$
261.70
$
270.85
$
280.35
$
290.15
10" Meter
$ 295.83
$ 301.75
$
312.30
$
323.25
$
334.55
$
346.25
$
358.35
Water Usage Rates ($/CCF)
Single Family Residential (2)
Tier 1- 0 to 10 CCF/month
$ 0.86
$ 0.88
$
0.91
$
0.94
$
0.97
$
1.00
$
1.04
Tier2 - 11to50 CCF/mont
$ 1.29
$ 1.32
$
1.37
$
1.42
$
1.47
$
1.52
$
1.57
Tier3 - Over 50 CCF/mono
$ 1.71
$ 1.74
$
1.80
$
1.86
$
1.93
$
2.00
$
2.07
Multi-FamilyandNon-Residential
(3)
All Water Usage
$ 0.789
$ 0.88
$
0.91
$
0.94
$
0.97
$
1.00
$
1.04
(1) RevisedJuly 1, 2008.
(2) Current residential metered rates are revenue neutral and were approved for comparative billing purposes only.
(3) Proposed multi -family and non-residential rates improve equity with single family water rates.
The Reed Group, Inc. DRAFT -- 7/6/2010
Exhibit B
Exhibit
City of Lodi --Wastewater Utility
Notes:
(1) Revised July 16,2009.
(2) Current revenue neutral rates were approved for comparative billing purposes only.
(3) Winter water usage determined as average monthly usage from December through February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT -- 07/21/2010
Current 1
July 2010
Residential
Percent Increase
12
Flat Rates ($/month)
1 Bedroom
$
20.81
$
23.30
2 Bedroom
$
27.74
$
31.07
3 Bedroom
$
34.68
$
38.84
4 Bedroom
$
41.61
$
46.61
5 Bedroom
$
48.55
$
54.37
6 Bedroom
$
55.48
$
62.14
7 Bedroom
$
62.42
$
69.91
Usage -Based Rates (2)
Service Charge ($/month)
$
18.95
$
21.22
Usage Charge ($/CCF) (3)
$
2.15
$
2.41
Non -Residential ($/month)
Moderate Strength (per SSU)
$
27.74
$
31.07
High Strength
Flow (per MG, annual basis)
$
2,808.88
$
3,145.95
BOD (per 1,000 lbs, annual basis)
$
463.54
$
519.16
SS (per 1,000 lbs, annual basis)
$
289.83
$
324.61
Grease Interceptor& Septic Holding Tank
Waste within City Limits (per 1,000 gal.)
$
245.44
$
274.89
Septic (only) Holding Tank Waste
Outside City Limits (per 1,000 gal.)
$
521.03
$
583.55
Disposal to Storm Drain System (per MG)
$
257.80
$
288.74
Disposal to Industrial System (4)
Flow (per MG, annual basis)
$
2,218.78
$
2,485.03
BOD (per 1,000 lbs, annual basis)
$
20.34
$
22.78
Winery Wastewater (per 1,000 gal.)
$
248.53
$
278.35
Notes:
(1) Revised July 16,2009.
(2) Current revenue neutral rates were approved for comparative billing purposes only.
(3) Winter water usage determined as average monthly usage from December through February.
(4) 2007 Industrial System rates are shown. Rates are calculated annually per LMC Sec. 13.12.210.
The Reed Group, Inc. DRAFT -- 07/21/2010
City cf Lodi --Wastewater Utility
'urrent and Proposed Water Usage -Based Residential Was rwater Rates
Current (1) Jul 2010
Wonthly Fixed Service Charge $ 18.95 $ 21.22
Wastewater Flow Charge $ 2.15 $ 2.41
Based on Winter Water Usage (2)
Monthly Wastewater Bills (for various usages)
Winter Water Use (CCF)
0
$
18.95
$ 21.22
1
$
21.10
$ 23.63
2
$
23.25
$ 26.04
3
$
25.40
$ 28.45
4
$
27.55
$ 30.86
5
$
29.70
$ 33.27
6
$
31.85
$ 35.68
7
$
34.00
$ 38.09
8
$
36.15
$ 40.50
9
$
38.30
$ 42.91
10
$
40.45
$ 45.32
11
$
42.60
$ 47.73
12
$
44.75
$ 50.14
13
$
46.90
$ 52.55
14
$
49.05
$ 54.96
15
$
51.20
$ 57.37
16
$
53.35
$ 59.78
17
$
55.50
$ 62.19
18
$
57.65
$ 64.60
19
$
59.80
$ 67.01
20
$
61.95
$ 69.42
Notes:
(1) Estimated to be revenue neutral relative to the wastewater rates implemented in July 2009.
(2) Winter water usage determined as average monthly usage from December through February.
The Reed Group, Inc. DRAFT— 07/06/2010