HomeMy WebLinkAboutResolutions - No. 2014-75RESOLUTION NO. 2014-75
A RESOLUTION OF THE LODI CITY COUNCIL SETTING FUTURE
WATER, WASTEWATER, AND SOLID WASTE RATES FOR
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
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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
and provides solid waste disposal service through a Franchise Agreement with USA
Waste of California, Inc. (Waste Management);
2. The City charges customers of the water and wastewater utilities a charge to fund the on-
going operation and maintenance of the water supply and wastewater disposal service;
3. Pursuant to Lodi Municipal Code Section 13.16.110 (Ordinance No. 1709), the schedule
of rates for solid waste collection shall be established and adopted by the City Council
from time to time by Resolution;
4. Waste Management has requested increases to the current solid waste disposal rates for
inflation and increased disposal fees as permitted under its Franchise Agreement;
5. On October 15, 2013, November 6, 2013, December 18, 2013, and March 5, 2014,
Council received advisory water, wastewater, and solid waste rates for residential,
commercial, and industrial customers, as the City transitions to a metered water system
to comply with State law;
6. Staff recommends adopting future adjustments with limits to usage -based and flat water
and wastewater rates for residential, multi -family, and non-residential customers as
presented in Exhibit A to become effective upon City Council approval of rate increase
resolutions at a future date;
Staff recommends approval of the Property Owner Meter Charge Schedule for water
meters, as presented in Exhibit B;
8. Staff recommends approval of the Waste Management Commercial Compactor Rate
schedule, as presented in Exhibit C;
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;
10. 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;
11. 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;
12. 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;
13, On May 7, 2014, 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;
14. Written protests against the proposed usage -based and flat water and wastewater rates
and solid waste rates for residential, commercial, and industrial customers were not
presented by a majority of the property owners and water, wastewater, and solid waste
utility customers; and
15. The proposed usage -based and flat water and wastewater rates and solid waste 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 follows:
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Levy of Charges. Pursuant to Sections 13.08.010, 13.12.240, and 13.16.110 of
the Lodi Municipal Code, the usage -based and flat water and wastewater and solid waste rates for
residential, commercial, and industrial customers; the property owner meter charge schedule for water
meters; and the Waste Management Commercial Compactor rate schedule, as attached hereto as
Exhibits A, B, and C are hereby approved.
Section 3. Future Adjustments. As provided by Government Code Section 53756, the
future adjustments shown in Exhibit A may be adopted annually for a period of five years by resolution
beginning May 8, 2014 through December 31, 2018 for water, wastewater, and solid waste rates, with
Council approval following a public hearing, in an amount not to exceed the smaller of the limits stated in
Exhibit A or the percentage change in the Engineering News Record (ENR) Twenty Cities Annual
Average Index for water and wastewater or other index as approved by the City Council by resolution.
For solid waste rates, the annual adjustment will not exceed either (a) 80 percent of the annual change in
the Consumer Price Index for all Urban Consumers for San Francisco -Oakland -San Jose, California area
(CPI), All Items (1982 — 84 = 100) published by the Bureau of Labor Statistics, plus an adjustment for
extraordinary increases in landfill fees, fuel and energy costs, and changes in law up to 100 percent of the
annual change in the CPI, or (b) 100 percent of the annual change in the CPI without those other
adjustments but with a certification that Waste Management's costs had increased by more than 100
percent of the change in the CPI. 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: May 7, 2014
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I hereby certify that Resolution No. 2014-75 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held May 7, 2014, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and Mayor Katzakian
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
NDI JO -OLSON
City erk
2014-75
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Jan.2013)
(Jan.2014)
(Jan. 2015)
(Jan.2016)
(Jan.2017)
(Jan. 2018
Jan.2019
Rate Increase -->
2.5%
3.0%
3.0%
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
29.90
$
30.65
$
31.57
$
32.52
$
33.50
$
34.51
$
35.55
2 Bedroom
$
35.91
$
36.81
$
37.91
$
39.05
$
40.22
$
41.43
$
42.67
3 Bedroom
$
43.04
$
44.12
$
45.44
$
46.80
$
48.20
$
49.65
$
51.14
4 Bedroom
$
51.72
$
53.01
$
54.60
$
56.24
$
57.93
$
59.67
$
61.46
5 Bedroom
$
62.03
$
63.58
$
65.49
$
67.45
$
69.47
$
71.55
$
73.70
6 Bedroom
$
74.44
$
76.30
$
78.59
$
80.95
$
83.38
$
85.88
$
88.46
Multi -Family (1)
1 Bedroom
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
2 Bedroom
$
30.79
$
31.56
$
32.51
$
33.49
$
34.49
$
35.52
$
36.59
3 Bedroom
$
36.94
$
37.86
$
39.00
$
40.17
$
41.38
$
42.62
$
43.90
4 Bedroom
$
44.32
$
45.43
$
46.79
$
48.19
$
49.64
$
51.13
$
52.66
Mobile Homes
Any Size
$
25.67
$
26.31
$
27.10
$
27.91
$
28.75
$
29.61
$
30.50
Non -Residential
Existing unmetered
Varies
+2.5%
+3.0%
+3.0%
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
Future Rate Ceilin
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Jan.
2013
Jan.
2014)
Jan.
2014
Jan. 2015
(Jan. 2016)
(Jan. 2017
Jan. 2018
Jan. 2019
Rate Increase -->
2.5%(2)
3
3.0%(4)
3.0%(4)
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
75.42
$
77.31
$
72.45
$
69.63
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
119.79
$
122.78
$
114.71
$
109.84
$
101.52
$
104.57
$
107.71
$
110.94
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$
23.78
$
24.37
$
23.26
$
22.80
$
21.65
$
22.30
$
22.97
$
23.66
1" meter
$
38.60
$
39.57
$
37.38
$
36.26
$
34.01
$
35.03
$
36.08
$
37.16
1 1/2" meter
$
60.24
$
61.75
$
62.08
$
64.28
$
64.62
$
66.56
$
68.56
$
70.62
2" meter
$
75.27
$
77.15
$
84.29
$
94.17
$
101.52
$
104.57
$
107.71
$
110.94
3" meter
$
105.38
$
108.01
$
132.74
$
162.18
$
187.65
$
193.28
$
199.08
$
205.05
4" meter
$
135.51
$
138.90
$
193.14
$
254.80
$
310.67
$
319.99
$
329.59
$
339.48
6" meter
$
195.68
$
200.57
$
333.69
$
480.82
$
617.94
$
636.48
$
655.57
$
675.24
8" meter
$
255.91
$
262.31
$
494.23
$
747.94
$
986.82
$
1,016.42
$
1,046.91
$
1,078.32
10" meter
$
316.01
$
323.91
$
674.61
$
1,056.08
$
1,417.30
$
1,459.82
$
1,503.61
$
1,548.72
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.92
$
0.94
$
0.94
$
0.97
$
0.96
$
0.99
$
1.02
$
1.05
Tier 2 (11-50 CCF)
$
1.38
$
1.41
$
1.35
$
1.33
$
1.27
$
1.31
$
1.35
$
1.39
Tier 3 (>50 CCF)
$
1.82
$
1.87
$
1.76
$
1.70
$
1.59
$
1.64
$
1.69
$
1.74
Multi -Family and Non -Residential
(1)
All water usage
$
0.92
$
0.94
$
1.00
$
1.09
$
1.14
$
1.17
$
1.21
$
1.25
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) This schedule includes the proposed indexing of 2.5 percent, with no rate structure changes.
(3) This rate schedule is revenue neutral relative to the proposed newly indexed January 2014 water rates, but includes the beginning of the
proposed 3 -year phased changes to the rate structure.
(4) These rate schedules reflect the second and third year of the 3 -year rate structure phasing, as well as the maximum potential rate
adjustment due to ENR indexing.
The Reed Group, Inc. 10/23/13
City of Lodi
Current and Pro osed Flat Wastewater Rates
Future Rate Ceiling
Current Proposed Proposed Proposed Proposed Proposed
Jul. 2013 Jul. 2014 Jul. 2015 Jul. 2016 Jul. 2017 Jul. 2018
Rate Increase --> 3.0% 3.0% 3.0% 3.0% 3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
5 Bedroom
$
60.27
$
62.08
$
63.94
$
65.86
$
67.84
$
69.88
6 Bedroom
$
68.88
$
70.95
$
73.08
$
75.27
$
77.53
$
79.86
7 Bedroom
$
77.49
$
79.81
$
82.20
$
84.67
$
87.21
$
89.83
Duplexes, Triplexes, Fourplexes, Apartments, and Condominiums
1 Bedroom
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
2 Bedroom
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
3 Bedroom
$
43.05
$
44.34
$
45.67
$
47.04
$
48.45
$
49.90
4 Bedroom
$
51.66
$
53.21
$
54.81
$
56.45
$
58.14
$
59.88
Mobile Homes
Any Size
$
25.83
$
26.60
$
27.40
$
28.22
$
29.07
$
29.94
Non -Residential (1)
Per SSU
$
34.44
$
35.47
$
36.53
$
37.63
$
38.76
$
39.92
Notes:
(1) Proposed flat wastewater rates for schools are to be determined on the basis of 18 student per SSU.
The Reed Group, Inc. 10/14/13
City of Lodi
Current and Proposed Usage -Based Wastewater Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
Future Rate Ceiling
Current
Proposed
Proposed
Proposed
Proposed-
Proposed
Jul. 2013
Jul. 2014
Jul. 2015
Jul. 2016
Jul. 2017
Jul. 2018
Rate Increase -->
3.0%
3.0%
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family (per DU)
$ 23.52
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
Multi -Family and Non -Residential
(1)
Up to 3/4" meter
$
24.23
$
24.96
$
25.71
$
26.48
$
27.27
1" meter
$
38.83
$
39.99
$
41.19
$
42.43
$
43.70
1 1/2" meter
$
75.03
$
77.28
$
79.60
$
81.99
$
84.45
2" meter
$
118.63
$
122.19
$
125.86
$
129.64
$
133.53
3" meter
$
220.45
$
227.06
$
233.87
$
240.89
$
248.12
4" meter
$
365.88
$
376.86
$
388.17
$
399.82
$
411.81
6" meter
$
729.12
$
750.99
$
773.52
$
796.73
$
820.63
8" meter
$
1,165.18
$
1,200.14
$
1,236.14
$
1,273.22
$
1,311.42
Usage Rates ($/CCF)
Single Family (2)
$ 2.68
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Multi -Family (2)
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Non -Residential (2) (3)
Low Strength
$
2.76
$
2.84
$
2.93
$
3.02
$
3.11
Medium Strength
$
3.45
$
3.55
$
3.66
$
3.77
$
3.88
High Strength
$
4.49
$
4.62
$
4.76
$
4.90
$
5.05
Industrial (4)
Flow (per MG annually)
$ 3,487.41
$
3,592.03
$
3,699.79
$
3,810.78
$
3,925.10
$
4,042.85
BOD (per 1,000 lbs annually)
$ 575.51
$
592.78
$
610.56
$
628.88
$
647.75
$
667.18
SS (per 1,000 lbs annually)
$ 359.85
$
370.65
$
381.77
$
393.22
$
405.02
$
417.17
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) Usage charge based on winter water use determined as the average from the prior December -February period.
Adjusted each July for each account.
(3) Placeholder. These rates not yet in use.
(4) Applies to industrial users discharging into the domestic sewer system.
The Reed Group, Inc. 10/23/13
Exhibit B
Meter Charge Schedule
Meter
Size
Price
Based
Cost x 1.55
%
$300
1
$350
1 'h
$780
2
$970
3
$1,980
4
$3,570
6
$6,760
8
$11,520
KAWP\UTILITY RATES\W WM2014 W -WW Rate Increase\Prop218\ResolutionExB.doc
Exhibit C
IAM
WAUWM u M19r"
CITY OF LODI
COMMERCIAL COMPACTOR RATES
EFFECTIVE April 1, 2014 TO March 31, 2015
Commercial Com
actor Rates
Service
1X Week
2X Week
3X Week
4X Week
5X Week
2 Cubic Yard Compactor
$290.35
$580.70
$871.05
$1,161.40
$1,451.75
3 Cubic Yard Compactor
$358.76
$717.53
$1,076.29
$1,435.05
$1,793.81
4 Cubic Yard Compactor
$427.73
$855.45
$1,283.18
$1,710.90
$2,138.63