HomeMy WebLinkAboutAgenda Report - February 15, 2017 G-03 PHCITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
TM
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: February 15, 2017
PREPARED BY: 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. 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 Engineering News
Record (ENR) index change or three percent. A summary of the past years' water rate adjustments relative to
the 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 the approved maximum.
The previous year's ENR index change was 3.36 percent and at the public hearing on December 21, 2016,
staff recommended a water rate increase of three percent followed by three -percent increases annually
through completion of the water meter program (WMP) in response to a declining balance in the water fund.
Construction costs associated with the WMP, and to a lesser extent water conservation, is driving the
recommendation for the maximum three -percent increase. A substantial portion of the costs to operate the
water utility are fixed. Lodi buys a small fraction of its water supply. The bulk of the cost is associated with
fixed cost for debt service on the treatment plant and fixed costs to maintain the delivery system. As such,
conservation does not reduce fixed operation costs. A three -percent increase will allow for the planned
construction of WMP Phase 7 in Fiscal Year 2016/17, however, it is expected to result in the utility dipping into
reserves by $783,000 in Fiscal Year 2017/18 and by $1.4 million in Fiscal Year 2018/19. This temporary
condition is acceptable because it is short term and provides a minimum of $600,000 in Fiscal Year 2018/19 to
account for unforeseen conditions that may be experienced by the utility.
As mentioned above, the proposed three -percent increase is pre -approved as a result of the City's Proposition
218 rate setting process conducted in May 2014. At the public hearing held on December 21, 2016, however,
Council requested staff evaluate options that would result in a rate increase of less than three percent.
Option 1 includes a one-year, two -percent rate increase, followed by annual three percent increases through
Fiscal Year 2019/20. Option 1 will result in the water utility dipping into reserves by almost $1 million dollars in
Fiscal Year 2017/18 and $1.7 million in Fiscal Year 2018/19, if construction of WMP Phase 7 is implemented
as planned in Fiscal Year 2016/17. This option would provide only $260,000 to account for unforeseen
conditions that may be experienced by the utility. Staff does not recommend Option 1 which would further
stress the financial condition of the utility when a pre -approved rate increase of three percent is available for
implementation.
APPROVED: _. 4.3-0(
Stephen Schwabauer, City Manager
K:\WP\UTILITY RATES\W WW\2017 WWW Rate Increase\CCPH_WaterRates2017 Feb doc
2/8/17
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
February 15, 2017
Page 2
Option 2 includes postponing WMP Phase 7 until Fiscal Year 2017/18 and implementing a two percent
increase in both Fiscal Year 2016/17 and Fiscal Year 2017/18, followed by annual three percent increases
through Fiscal Year 2019/20. This option preserves the utility's minimum reserve balance, however, it would
extend the schedule for completing the WMP until Fiscal Year 2019/20 and would add approximately $120,000
(equivalent to roughly one percent of annual revenues) to the overall WMP cost due to inflation if construction
costs continue to increase at the present rate of approximately three percent per year. Option 2 imposes the
least financial stress on the utility while softening annual rate increases over two years, however, it does
counter original Council goals of accelerating the WMP to minimize the time of converting customers from flat -
rate to metered rates. Council would consider Option 2 if the primary goal is to maintain reserves while
softening proposed rate increases, in exchange for adding approximately $120,000 to the overall cost of WMP
and postponing its completion by one year.
Option 3 includes freezing rates at current levels and securing a loan to supplement the annual revenue
shortfall until the final phase of the WMP is completed in Fiscal Year 2018/19. There are a variety of loan
options available as reflected in the "Overview of New Money Financing Options" compiled from staff contacts
with prospective issuers (Attachment Al). If Council desires to pursue this option, staff prefers a short-term
(10 -year) bank direct purchase loan. Based on staff research, the bank direct purchase loan would be the
overall least expensive option for borrowing when compared to the State Revolving Fund and Capital Market
Financing (Municipal bond) options. If Option 3 is exercised, it is expected that rates could be frozen at current
levels until 2020, however, the utility would pay approximately $1.5 million dollars in interest over the life of the
loan. Council would consider Option 3 if the primary goal is to hold current rates steady while not impacting
the WMP schedule, in exchange for adding an estimated $1.5 million dollars in finance charges to the overall
cost of the WMP.
Option 4 acknowledges the concern with increasing rates in order to generate revenues that will no longer be
needed upon completion of the WMP. To address this issue, Council could consider establishing a "rate
sunset" that would reset water rates to January 1, 2017 levels effective January 1, 2021 unless extraordinary
circumstances required other Council action. Under this option, Council could stay with the staff
recommendation of a three percent increase and remain on the current construction timeline, or combine with
Option 2 to extend the construction timeline with a two percent increase. Staff does not recommend combining
this approach with Option 1 because of the financial stress imposed on the utility. Council would consider
Option 4 in conjunction with either the recommended action or Option 2 if the primary goal is to avoid a water
rate that will not be excessive at the end of the WMP and to minimize increased costs to the WMP, and
ultimately the rate payer.
A summary of current and proposed rates (for the recommended three -percent increase) for flat -rate and
usage -based rate customers is provided in Attachment B1. For a resident billed on the flat -rate, the monthly
charge for a three-bedroom home will increase from $45.89 to $47.27, or $1.38 per month. A metered resident
using an average of 1,800 cubic feet of water per month will see an increase from $40.63 to $41.89, or $1.26
per month.
A summary of current and proposed rates (for the two -percent increase) for flat -rate and usage -based rate
customers is provided in Attachment B2. For a resident billed on the flat -rate, the monthly charge for a three-
bedroom home will increase from $45.89 to $46.81, or $0.92 per month. A metered resident using an average
of 1,800 cubic feet of water per month will see an increase from $40.63 to $41.57, or $0.94 per month.
As reflected in the City's Financial Plan for the three -percent increase (Attachment C1), the two -percent
increase (Attachment C2), and the optional two -percent increase for Fiscal Year 2016/17 and Fiscal Year
2017/18, while postponing WMP Phase 7 construction (Attachment C3), fund balances rebound upon
completion of the City's multi-year Water Meter Program.
K:\WP\UTILITY RATES\W WW\2017 WWW Rate Increase\CCPR WaterRates2017 Feb doc 2/8/17
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
February 15, 2017
Page 3
FISCAL IMPACT:
The Water Utility is requiring increased revenue to accommodate the impacts of
conservation coupled with inflationary pressures in the construction industry
resulting from an improving economy.
FUNDING AVAILABLE: Not applicable.
Charles E. Swimley, Jr.
Public Works Director
Prepared by Rebecca Areida-Yadav, Public Works Management Analyst
CES/RAY/tdb
Attachments
K:\WP\UTILITY RATES\W WW\2017 WWW Rate Increase\CCPH WaterRates2017 Feb.doc 2/8/17
Attachment A
Programmed and Implemented Rate Adjustments
Water
Year
Programmed
Implemented
2009
3.10 (1)
0
2010
0.73 (1)
0
2011
5.98 (2)
2.0
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)
2017
3.36 (3)
3.0 (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
Overview
of New Money Financing
Options (Attachment
Al)
Financing Summary
Capital Markets Financing
State Revolving Fund Loan
Bank Direct Purchase
Project Fund
$
8,000,000
$
8,000,000
$
8,000,000
Cost of Issuance
$
173,250
$
-
$
100,000
Underwritier's Discount
$
50,000
$
-
$
-
Closing Fee
$
-
$
80,850
$
-
Term (Years)
20
20
10
True Interest Cost (%)
3.45
2.90
2.95
Par Amount
$
7,150,000
$
8,085,000
$
8,100,000
Premium
$
1,073,390
$
-
$
-
Total Interest
$
4,440,675
$
2,825,762
$
1,510,695
Total Debt Service
$
11,590,675
$
10,910,762
$
9,610,695
Average Annual Debt Service
$
563,110
$
530,078
$
908,097
Attachment B1
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
(Jan. 2016)
Proposed
(Jan. 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 31.88
$ 32.84
$ 33.83
$ 34.84
2 Bedroom
$ 38.29
$ 39.44
$ 40.62
$ 41.84
3 Bedroom
$ 45.89
$ 47.27
$ 48.69
$ 50.15
4 Bedroom
$ 55.14
$ 56.79
$ 58.49
$ 60.24
5 Bedroom
$ 66.13
$ 68.11
$ 70.15
$ 72.25
6 Bedroom
$ 79.37
$ 81.75
$ 84.20
$ 86.73
7 Bedroom
$ 95.17
$ 98.03
$ 100.97
$ 104.00
Multi -Family (1)
1 Bedroom
$ 27.37
$ 28.19
$ 29.04
$ 29.91
2 Bedroom
$ 32.83
$ 33.81
$ 34.82
$ 35.86
3 Bedroom
$ 39.40
$ 40.58
$ 41.80
$ 43.05
Mobile Homes
Any Size
$ 27.37
$ 28.19
$ 29.04
$ 29.91
Non -Residential
Existing unmetered
Varies
+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
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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)
(Jan.
Current
2016)
Proposed
(Jan. 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 21.23
$ 21.87
$ 22.53
$ 23.21
1" meter
$ 33.34
$ 34.34
$ 35.37
$ 36.43
1 1/2" meter
$ 63.35
$ 65.25
$ 67.21
$ 69.23
2" meter
$ 99.53
$ 102.52
$ 105.60
$ 108.77
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 21.23
$ 21.87
$ 22.53
$ 23.21
1" meter
$ 33.34
$ 34.34
$ 35.37
$ 36.43
1 1/2" meter
$ 63.35
$ 65.25
$ 67.21
$ 69.23
2" meter
$ 99.53
$ 102.52
$ 105.60
$ 108.77
3" meter
$ 183.98
$ 189.50
$ 195.19
$ 201.05
4" meter
$ 304.59
$ 313.73
$ 323.14
$ 332.83
6" meter
$ 605.85
$ 624.03
$ 642.75
$ 662.03
8" meter
$ 967.52
$ 996.55
$ 1,026.45
$ 1,057.24
10" meter
$ 1,389.57
$ 1,431.26
$ 1,474.20
$ 1,518.43
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.94
$ 0.97
$ 1.00
$ 1.03
Tier 2 (11-50 CCF)
$ 1.25
$ 1.29
$ 1.33
$ 1.37
Tier 3 (>50 CCF)
$ 1.55
$ 1.60
$ 1.65
$ 1.70
Multi -Family and Non -Residential (1)
All water usage $ 1.12
$ 1.15
$ 1.18
$ 1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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
Attachment B2
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
(Jan. 2016)
Proposed
(March 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
2.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 31.88
$ 32.52
$ 33.50
$ 34.51
2 Bedroom
$ 38.29
$ 39.06
$ 40.23
$ 41.44
3 Bedroom
$ 45.89
$ 46.81
$ 48.21
$ 49.66
4 Bedroom
$ 55.14
$ 56.24
$ 57.93
$ 59.67
5 Bedroom
$ 66.13
$ 67.45
$ 69.47
$ 71.55
6 Bedroom
$ 79.37
$ 80.96
$ 83.39
$ 85.89
7 Bedroom
$ 95.17
$ 97.07
$ 99.98
$ 102.98
Multi -Family (1)
1 Bedroom
$ 27.37
$ 27.92
$ 28.76
$ 29.62
2 Bedroom
$ 32.83
$ 33.49
$ 34.49
$ 35.52
3 Bedroom
$ 39.40
$ 40.19
$ 41.40
$ 42.64
Mobile Homes
Any Size
$ 27.37
$ 27.92
$ 28.76
$ 29.62
Non -Residential
Existing unmetered
Varies
+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
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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
(Jan. 2016)
Proposed
(March 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
2.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 21.23
$ 21.65
$ 22.30
$ 22.97
1" meter
$ 33.34
$ 34.01
$ 35.03
$ 36.08
1 1/2" meter
$ 63.35
$ 64.62
$ 66.56
$ 68.56
2" meter
$ 99.53
$ 101.52
$ 104.57
$ 107.71
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 21.23
$ 21.65
$ 22.30
$ 22.97
1" meter
$ 33.34
$ 34.01
$ 35.03
$ 36.08
1 1/2" meter
$ 63.35
$ 64.62
$ 66.56
$ 68.56
2" meter
$ 99.53
$ 101.52
$ 104.57
$ 107.71
3" meter
$ 183.98
$ 187.66
$ 193.29
$ 199.09
4" meter
$ 304.59
$ 310.68
$ 320.00
$ 329.60
6" meter
$ 605.85
$ 617.97
$ 636.51
$ 655.61
8" meter
$ 967.52
$ 986.87
$ 1,016.48
$ 1,046.97
10" meter
$ 1,389.57
$ 1,417.36
$ 1,459.88
$ 1,503.68
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.94
$ 0.96
$ 0.99
$ 1.02
Tier 2 (11-50 CCF)
$ 1.25
$ 1.28
$ 1.32
$ 1.36
Tier 3 (>50 CCF)
$ 1.55
$ 1.58
$ 1.63
$ 1.68
Multi -Family and Non -Residential (1)
All water usage $ 1.12
$ 1.14
$ 1.17
$ 1.21
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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 -- Water Utility
Financial Plan Summary
FY 16-17 FY 17-18
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer From/(To) RSF (18x)
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'Is., Services & Other
Debt Service
1991 CSDW Loan Payments
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
3.0%
Jan. 2017
4,551,353
12,867,000
82,000
39,000
109,000
3.0%
Jan. 2018
FY 18-19
FY 19-20 FY 20-21
3,742,272
13,493,000
49,000
40,000
109,000
3.0%
Jan. 2019
1,198, 661
14, 246, 000
22,000
41,000
109,000
3.0%
Jan. 2020
3.0%
Jan. 2021
595,550 2,618,839
14, 869,000
40,000
42,000
286,000
15,199,000
117,000
43,000
286,000
13,097,000
780,000
3,850,000
2,761,000
762,000
3,400,000
2,353,080
13,691,000
780,000
6,000,000
2,854,000
794,000
3,501,000
2,305,611
14,418,000
780,000
4,550,000
2,951,000
828,000
3,605,000
2,307,111
15, 237, 000 15, 645, 000
780,000
2,500,000
3,051,000
863,000
3,712,000
780,000
500,000
3,123,000
892,000
3,800,000
2,307,711 2,305,911
13,906,080
16,234,611
15,021,111
13,213,711 11,400,911
3,742,272
1,198,661
595,550 2,618,839 6,862,928
1,926,000
1,816,272
2.41
1,982,000 2,041,000
(783,339) (1,445,450)
2.86 2.82
2,102,000
516,839
3.07
2,149,000
4,713,928
3.10
TE-CAPIXAL OUTLAY (561)
.h.
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
1,447,432 303,597
3,850,000 6,000,000
15,000 (4,000)
585,024
251,000 252,000
146,621
4,550,000
254,000
81,621
2,500,000
(1,000)
256,000
126,621
500,000
1,000
78,000
4,116, 000
6,833,024
4,804,000
2,755,000 579,000
25%
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Expenditures
Loan to EUD (City Hall Annex) -
Water Meter/Main Install. Project 4,296,000 5,634,000 3,967,000
Water Taps 77,000 80,000 82,000 84,000 87,000
Miscellaneous Water Mains 52,000 53,000 55,000 56,000 58,000
GAC & Meter Repl (DBCP) 300,000 300,000 300,000 300,000
Meter Shop Design 50,000 200,000 - -
Southwest Gateway Water Tank - - 2,000,000 -
Surface Water Treatment Plant PS Generator 300,000
Finance Security Cameras 30,000 - -
Info Systems Data Center
Lodi Lake Boat Launch - - - -
Well 10C 110,488 - - - -
Well 1
Well 2 -Replace Motor - - - -
Well 3 & 1OR Abandonment 55,348 - - - -
Well 6R -Pump Rehab/Repl - - - -
Well 5 -Pump Rehab & Electrical Upgrade
Well 8 -Pump Rehab, Electrical Upgrade & Chlorination - - - -
Well 10 - Pump Rehab - Well 11 - - - -
Well 12 -Pump Rehab/Repl - - - -
Well 13 -Pump Rehab & Electrical Upgrade - - - -
Well 14 -Pump Rehab/Repl - 176,000
Well 15 -Pump Rehab/Repl 186,000 - -
Well 16 -Pump Rehab/Electrical Upgrade - - 219,000 -
Well 17 -Pump Rehab/Electrical Upgrade - - 202,000 -
Well 18 -Pumpb Rehab/Electrical Upgrade
Well 19 -Pump Replacement
Well 20 -Pump Rehab/Electrical Upgrade - - - -
Well 21 - - 225,000
Well 22 155,000 - -
Well 23 - 214,000
Well 24 - Pump Rehab & Electrical Upgrade - - - -- Well 25 - - - 232,000
Vehicles/Equipment 134,000 61,000 44,000 45,000 46,000
Total Expenditures 5,259,835 6,990,000 4,869,000 2,710,000 637,000
Ending Balance 303,597 146,621 81,621 126,621 68,621
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
t
Beginning Balance
Revenues
Water Impact Mitigation Fees
Interest Earnings
Total Revenues
Expenditures
Transfer to Fund 181 for Well 27
Transfer to Operations Fund 180 for Debt Service
Total Expenditures
Ending Balance
Owed Fund 180 for Debt Service
330,561 337,561
109,000
7,000
109,000
7,000
344,561
109,000
9,000
353,561 362,561
286,000
9,000
286,000
9,000
116,000
109,000
116,000
109,000
118,000
109,000
295,000
286,000
295,000
286,000
109,000
109,000
109,000
286,000
286,000
337,561
344,561
353,561
362,561
371,561
6,587,000
7,382,000 8,158,000
8,737,000 9,295,000
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
5,913,000
1,926,000
1,530,000
2,457,000
3,220,000
1,982,000
1,530,000
2,561,000
2,041,000
1,530,000
(292,000) (1,010,000)
4,638,000
2,102,000
1,530,000
1,006,000
8,833,000
2,149,000
1,530,000
5,154,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Customer Account Assumptions
No. of DUs/Accounts
No. of 3/4" Eq. Mtrs.
No. of New Connections
Customer Growth Rate
Water Mitigation Impact Fee
Residential $
Non -Residential
3.0% 3.0% 3.0% 3.0% 3.0%
3.4% 3.4% 3.4% 3.4% 3.4%
4.5% 4.5% 4.5% 4.5% 4.5%
3.0% 3.0% 3.0% 3.0% 3.0%
2.0% 2.0% 2.5% 2.5% 2.5%
23,656 23,706 23,756 23,806 23,856
25,704 25,754 25,804 25,854 25,904
50 50 50 50 50
0.19% 0.19% 0.19% 0.19% 0.19%
$ 5,710 $ 5,710
1,263 $ 1,263 $ 1,263
3,103 3,103 3,103
City of Lodi -- Water Utility
Financial Plan Summary
FY 16-17 FY 17-18
FY 18-19 FY 19-20
FY 20-21
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'Is., Services & Other
Debt Service
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
2.0%
Jan. 2017
3.0%
Jan. 2018
4,551,353 3,750,803
12,809,000
98,530
39,000
109,000
13,055,530
780,000
3,800,000
2,761,000
762,000
3,400,000
13,362,000
46,000
40,000
109,000
13,557,000
780,000
6,150, 000
2,854,000
794,000
3,501,000
2,353,080 2,305,611
13,856,080 16,384,611
3.0%
Jan. 2019
923,192
14,108, 000
13,000
41,000
109,000
14,271,000
780,000
4,600,000
2,951,000
828,000
3,605,000
3.0%
Jan. 2020
123,081
14,724,000
26,000
42,000
286,000
15,078,000
780,000
2,500,000
3,051,000
863,000
3,712,000
2,307,111 2,307,711
15,071,111 13,213,711
3.0%
Jan. 2021
1,987,370
15,051,000
99,000
43,000
286,000
15,479,000
780,000
500,000
3,123,000
892,000
3,800,000
2,305,911
11,400,911
3,750,803 923,192
123,081 1,987,370
6,065,459
1,926,000
1,824,803
2.39
1,982,000 2,041,000
(1,058,808) (1,917,919)
2.80 2.76
2,102,000
(114,630)
3.01
2,149,000
3,916,459
3.02
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
1,447,432 252,597 246,620
3,800,000
14,000
6,150,000 4,600,000
(3,000) 3,000
585,024 -
251,000 252,000 254,000
234,620
2,500,000
3,000
256,000
283,620
500,000
5,000
78,000
4,065,000 6,984,024
4,857,000
2,759,000 583,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Expenditures
Water Meter/Main Install. Project 4,296,000 5,634,000 3,967,000
Water Taps 77,000 80,000 82,000 84,000 87,000
Miscellaneous Water Mains 52,000 53,000 55,000 56,000 58,000
GAC & Meter Repl (DBCP) 300,000 300,000 300,000 300,000 -
Meter Shop Design 50,000 200,000
Southwest Gateway Water Tank - - 2,000,000
Surface Water Treatment Plant PS Generator 300,000
Finance Security Cameras 30,000
Well 10C 110,488
Well 3 & 10R Abandonment 55,348
Well 14 -Pump Rehab/Rept 176,000
Well 15 -Pump Rehab/Rept 186,000
Well 16 -Pump Rehab/Electrical Upgrade - 219,000
Well 17 -Pump Rehab/Electrical Upgrade 202,000
Well 21 - - 225,000
Well 22 155,000 - -
Well 23 - - 214,000
Well 25 - - 232,000
Vehicles/Equipment 134,000 61,000 44,000 45,000 46,000
Total Expenditures 5,259,835 6,990,000 4,869,000 2,710,000 637,000
Ending Balance
252,597 246,620
234,620 283,620 229,620
MFWATERFACT '' ,IES (562
Beginning Balance 214,179 218,179 222,179 228,179 234,179
Revenues
Water Impact Mitigation Fees 109,000 109,000 109,000 286,000 286,000
Interest Earnings 4,000 4,000 6,000 6,000 6,000
Total Revenues 113,000 113,000 115,000 292,000 292,000
Expenditures
Transfer to Fund 181 for Well 27 -
Transfer to Operations Fund 180 for Debt Service 109,000 109,000 109,000 286,000 286,000
Total Expenditures 109,000 109,000 109,000 286,000 286,000
Ending Balance 218,179 222,179 228,179 234,179 240,179
Owed Fund 180 for Debt Service 6,587,000 7,382,000 8,158,000 8,737,000 9,295,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
5,752,000 2,922,000 2,116,000 4,035,000 8,065,000
1,926,000 1,982,000 2,041,000 2,102,000 2,149,000
1,530,000 1,530,000 1,530,000 1,530,000 1,530,000
2,296,000 (590,000) (1,455,000) 403,000 4,386,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Customer Account Assumptions
3.0% 3.0% 3.0% 3.0% 3.0%
3.4% 3.4% 3.4% 3.4% 3.4%
4.5% 4.5% 4.5% 4.5% 4.5%
2.0% 3.0% 3.0% 3.0% 3.0%
2.0% 2.0% 2.5% 2.5% 2.5%
No. of DUs/Accounts 23,656 23,706 23,756 23,806 23,856
No. of 3/4" Eq. Mtrs. 25,704 25,754 25,804 25,854 25,904
No. of New Connections 50 50 50 50 50
Customer Growth Rate 0.19% 0.19% 0.19% 0.19% 0.19%
Water Mitigation Impact Fee $ 5,710 $ 5,710
Residential $ 1,263 $ 1,263 $ 1,263
Non -Residential 3,103 3,103 3,103
City of Lodi -- Water Utility
Financial Plan Summary
FY 16-17
FY 17-18
FY 18-19
FY 19-20 FY 20-21
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'ls., Services & Other
Debt Service
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
2.0%
Jan. 2017
4,551,353
12,809,000
98,530
39,000
109,000
13,055,530
780,000
2,800,000
2.0%
Jan. 2018
2,761,000
762,000
3,400,000
2,353,080
12,856,080
4,750,803
13,301,000
94,000
40,000
109,000
13, 544, 000
780,000
3,300,000
3.0%
Jan. 2019
2,854,000
794,000
3,501,000
2,305,611
13,534,611
4,760,192
13,969,000
96,000
41,000
109,000
14, 215, 000
3.0%
Jan. 2020
780,000
5,500,000
2,951,000
828,000
3,605,000
2,307,111
15,971,111
3.0%
Jan. 2021
3,004,081 2,871,370
14,580,000
73,000
42,000
286,000
14,981,000
780,000
4,400,000
3,051,000
863,000
3,712,000
14,904,000
118,000
43,000
286,000
15,351,000
780,000
600,000
3,123, 000
892,000
3,800,000
2,307,711 2,305,911
15,113,711 11,500,911
4,750,803
4,760,192
3,004,081 2,871,370 6,721,459
1,926,000
2,824,803
2.39
1,982,000
2,778,192
2.80
2,041,000
963,081
2.74
2,102,000
769,370
2.96
2,149,000
4,572,459
2.97
• L OU
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
1,447,432
2,800,000
14,000
251,000
252,597
3,300,000
(3,000)
585,024
252,000
246,620
5,500,000
3,000
254,000
271,620
4,400,000
3,000
256,000
199,620
600,000
5,000
78,000
3,065,000
4,134,024 5,757,000
4,659,000 683,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Expenditures
Water Meter/Main Install. Project 3,296,000 2,790,000 4,838,000 2,023,000
Water Taps 77,000 79,000 81,000 84,000 86,000
Miscellaneous Water Mains 52,000 53,000 54,000 56,000 57,000
GAC & Meter Repl (DBCP) 300,000 300,000 300,000 300,000
Meter Shop Design 50,000 200,000 - - -
Southwest Gateway Water Tank - - - 2,000,000 -
Surface Water Treatment Plant PS Generator - 300,000 - - -
Finance Security Cameras 30,000 - -
Well 10C 110,488 - -
Well 3 & 10R Abandonment 55,348
Well 14 -Pump Rehab/Rept - 174,000
Well 15 -Pump Rehab/Rept - 184,000 -
Well 16 -Pump Rehab/Electrical Upgrade - - 216,000
Well 17 -Pump Rehab/Electrical Upgrade - - 200,000 -
Well 21 - - 223,000
Well 22 155,000
Well 23 - - - - 212,000
Well 25 - - - - 230,000
Vehicles/Equipment 134,000 60,000 43,000 45,000 46,000
Total Expenditures 4,259,835 4,140,000 5,732,000 4,731,000 631,000
Ending Balance
252,597 246,620 271,620 199,620 251,620
C L S 62
Beginning Balance 214,179 218,179 222,179 228,179 234,179
Revenues
Water Impact Mitigation Fees 109,000 109,000 109,000 286,000 286,000
Interest Earnings 4,000 4,000 6,000 6,000 6,000
Total Revenues 113,000 113,000 115,000 292,000 292,000
Expenditures
Transfer to Fund 181 for Well 27 - - - -
Transfer to Operations Fund 180 for Debt Service 109,000 109,000 109,000 286,000 286,000
Total Expenditures 109,000 109,000 109,000 286,000 286,000
Ending Balance
218,179 222,179 228,179 234,179 240,179
Owed Fund 180 for Debt Service 6,587,000
7,382,000 8,158,000
8,737,000 9,295,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
6,752,000 6,759,000 5,034,000 4,835,000 8,743,000
1,926,000 1,982,000 2,041,000 2,102,000 2,149,000
1,530,000 1,530,000 1,530,000 1,530,000 1,530,000
3,296,000 3,247,000 1,463,000 1,203,000 5,064,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation 3.0% 3.0% 3.0% 3.0% 3.0%
Labor Inflation 3.4% 3.4% 3.4% 3.4% 3.4%
Material/Energy Inflation 4.5% 4.5% 4.5% 4.5% 4.5%
Construction Inflation 2.0% 2.0% 3.0% 3.0% 3.0%
Interest Earnings 2.0% 2.0% 2.5% 2.5% 2.5%
Customer Account Assumptions
No. of DUs/Accounts 23,656 23,706 23,756 23,806 23,856
No. of 3/4" Eq. Mtrs. 25,704 25,754 25,804 25,854 25,904
No. of New Connections 50 50 50 50 50
Customer Growth Rate 0.19% 0.19% 0.19% 0.19% 0.19%
Water Mitigation Impact Fee $ 5,710 $ 5,710
Residential $ 1,263 $ 1,263 $ 1,263
Non -Residential 3,103 3,103 3,103
RESOLUTION NO. 2017-23
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 (ENR) 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 three -percent increase; and
WHEREAS, the adjustment includes a "rate sunset" at the end of the Water Meter
Program, which will eliminate this rate increase going forward from January 1, 2021.
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 March 1, 2017; and
BE IT FURTHER RESOLVED that the adjustment includes a "rate sunset" at the end of
the Water Meter Program whereby water rates will be reset going forward from January 1, 2021,
to the applicable rate as if this resolution had never passed.
Dated: February 15, 2017
I hereby certify that Resolution No. 2017-23 was passed and adopted by the City
Council of the City of Lodi in a special meeting held February 15, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, and Mayor Kuehne
NOES: COUNCIL MEMBERS — Nakanishi
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS — None
2017-23
NNIFE RAMOLO
ity Clerk
Exhibit A
City of Lodi
Flat Water Rates
Notes:
(1) Mufti -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 Celling.(2)
Current
(Jan. 2016)
Proposed
(Jan. 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 31.88
$ 32.84
$ 33.83
$ 34.84
2 Bedroom
$ 38.29
$ 39.44
$ 40.62
$ 41.84
3 Bedroom
$ 45.89
$ 47.27
$ 48.69
$ 50.15
4 Bedroom
$ 55.14
$ 56.79
$ 58.49
$ 60.24
5 Bedroom
$ 66.13
$ 68.11
$ 70.15
$ 7225
6 Bedroom
$ 79,37
$ 81.75
$ 84.20
$ 86.73
7 Bedroom
$ 95.17
$ 98.03
$ 100.97
$ 104.00
Multi -Family (1)
1 Bedroom
$ 27.37
$ 28.19
$ 29.04
$ 29.91
2 Bedroom
$ 32.83
$ 33,81
$ 34.82
$ 35.86
3 Bedroom
$ 39.40
$ 40.58
$ 41.80
$ 43.05
Mobile Homes
Any Size
$ 27.37
$ 28.19
$ 29.04
$ 29,91
Non -Residential
Existing unmetered
Varies
+3.0%
+3.0%
+3,0%
Notes:
(1) Mufti -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
Potential Potential
(Jan. 2018) (Jan. 2019)
City of Lodi
Current and Proposed Usage -Based Water Rates
Current Proposed
(Jan. 2016) (Jan. 2017)
Rate Increase --> 3.0%
Future Rate Ceiling (2)
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter $ 21.23 $ 21.87
1" meter $ 33.34 $ 34.34
1 1/2" meter $ 63.35 $ 65,25
2" meter $ 99.53 $ 102.52
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.23 $ 21.87
1" meter $ 33.34 $ 34.34
1 1/2" meter $ 63.35 $ 65.25
2" meter $ 99.53 $ 102.52
3" meter $ -183.98 $ 189.50
4" meter $ 304.59 $ 313.73
6" meter $ 605.85 $ 624.03
8" meter $ 967.52 $ 996.55
10" meter $ 1,389.57 $ 1,431.26
Usage Rates ($/CCJ
Single Family
Tier 1 (0-10 CCF) $ 0.94 $ 0.97
Tier 2 (11-50 CCF) $ 1.25 $ 1.29
Tier 3 (>50 CCF) $ 1.55 $ 1.60
Multi -Family and Non -Residential (1)
All water usage $ 1.12 $ 1.15
3.0% 3.0%
$ 22.53 $ 23.21
$ 35.37 $ 36.43
$ 67.21 $ 69.23
$ 105.60 $ 108.77
$ 22.53 $ 23.21
$ 35.37 $ 36.43
$ 67.21 $ 69.23
$ 105.60 $ 108.77
$ 195.19 $ 201.05
$ 323.14 $ 332.83
$ 642.75 $ 662.03
$ 1,026.45 $ 1,057.24
$ 1,474.20 $ 1,518.43
$ 1.00 $ 1.03
$ 1.33 $ 1.37
$ 1.65 $ 1.70
$ 1.18 $ 1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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
W.-- .................. !I I
4
Water Rate Setting
• May 2014 - Council Adopted Five -Year Schedule
of Rate Adjustments
• ENR Index or Maximum Three Percent
• Proposition 218 Procedure Affirmed Schedule
• Financial Model Used to Analyze Rate Changes
Background
• November 15, 2016 - Set Public Hearing
• December 21, 2016 - Public Hearing
— Council requested rate options for consideration
• February 1, 2017 - Item to Set Public Hearing
— Staff provided two options for consideration
— Council requested expanding options for consideration
at Public Hearing
Recommendation
• Recommendation Action
— Three percent increase in FY 2016/17 followed by
annual three percent increases through FY 2019/20
• Proposition 218 — Three percent maximum
• 2016 ENR Index Change - 3.36 percent
• Pre -approved increase by 2014 Council Action
— Implement WMP Phase 7 per schedule
— Places some financial stress on utility in FY 2017/18
and FY 2018/19
Options
• Option 1 (Not recommended)
— One-year two percent increase followed by annual
three percent increases through FY 2019/20
— Implement Phase 7 per schedule
— Places substantial financial stress on utility in FY
2017/18 and FY 2018/19
Options
• Option 2 (For consideration)
— Two percent increase in FY 2016/17 and FY 2017/18
followed by annual three percent increases through FY
2019/20
— Postpone WMP Phase 7 until FY 2017/18
— Softens rate increases —maintains reserves
— Adds approximately $120,000 to program —postpones
completion by one year
Options
• Option 3 (For consideration)
— Includes securing a loan to supplement annual revenue
shortfalls until WMP is completed
— No increases through FY 2019/20
— Implement WMP Phase 7 per schedule
— Adds approximately $1,500,000 to overall WMP due to
finance charges associated with loan
Options
• Option 4 (For consideration)
— Includes a "rate sunset" at end of WMP
— Rolls back water rates to January 1, 2017 levels as of
January 1, 2021
— Adds no cost to WMP — avoids excessive water rates at
end of water meter program
— Compliments recommended action of three percent
increase
— Avoids $1,500,000 in financing costs
Water Operating Balances
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
FY 16/17
FY 17/18
FY 18/19
FY 19/20
FY 20/21
—■—Ending Balance with 3%
Rate Increase
❑ Ending Balance with 2%
Rate Increase
--Ending Balance with 2%
Skip a Year
--Ending Balance with
Financing
--Operating Reserve (25%)
Water Meter Program Status
• Metered residential customers
• 80 percent single-family residential as of January 1,
2017
• 13,500 meters
• Residential meters installed (incl. Phase 6)
• 87 percent single-family residential
• 14,400 meters
• Flat -rate, single-family residential customers
• 3,000 as of January 1, 2017
7 -Year Summary
Year
Prop 218
Approved
ENR
Implemented
2011
2012
5.98
5.98*
2.53 2.53
2013 2.5 2.5
2.0
2.2
2.5
2014 3.3 3.3 2.5
2015 3.0 2.0 2.0
2016 3.0 1.975 1.975
2017 3.0 3.36 3.0
*Consumer price index (use of ENR index became effective January 2012
Recommended Water Flat Rates
Residential
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
5 Bedroom
6 Bedroom
7 Bedroom
$31.88
$38.29
$45.89
$55.14
$66.13
$79.37
$95.17
January 2017
$32.84
$39.44
$47.27
$56.79
$68.11
$81.75
$98.03
Recommended Metered Rates
Residential
Current
January 2017
Fixed Service Charge (3/4 inch)
$21.23
$21.87
Metered Charges:
Tier 1 (Up to 7,480 gals/month) $0.00126/gal $0.00130/gal
Tier 2 (7,480-37,400 gals/month) $0.00167/gal $0.00172/gal
Tier 3 (>34,000 gals/month) $0.00207/gal $0.00214/gal
Three Percent Increase Amounts
(Recommended)
• Flat -Rate - 3 Bedroom Home
— Currently $45.89 / Month
— January 1St $47.27 / Month
— Difference $ 1.38 / Month
• Metered Rate — (1,800 CF / Month)
— Currently $40.63 / Month
— January 1St $41.89 /Month
— Difference $ 1.26 / Month
Two Percent Increase Amounts
• Flat -Rate - 3 Bedroom Home
— Currently $45.89 / Month
— January 1St $46.81 / Month
— Difference $ 0.92 / Month
• Metered Rate — (1,800 CF / Month)
— Currently $40.63 / Month
— January 1St $41.57 /Month
— Difference $ 0.94 / Month
Average Bill
Rate Comparisons - Local
City of Tracy
City of Galt
City of Lodi
City of Manteca
City of Stockton
City of Lathrop
$29.70
$34.64
$41.89 / $41.57
$44.64
$69.31
$80.71
Based on 1,800 cubic feet per month
Rate Comparisons - Regional
Average Bill
City of Lodi
City of Modesto
City of Sacramento
City of Brentwood
City of Oakland
City of Burlingame
City of San Mateo
$41.89 / $41.57
$45.99
$46.57
$63.60
$102.83
$123.16
$132.25
Based on 1,800 cubic feet per month
Recommendation
• Adopt a resolution setting pre -approved
Engineering News Record Adjustment Index for
usage -based and flat water rates for residential,
commercial, and industrial customers
Questions?
b
m, 1,4,1/4,0-
G -3
Response to Agenda Item G-03 February 15, 2017 Public Hearing to
Consider Record Adjustment Index on Water Rates
I know the Lodi City Council, Manager and Department Heads have a
vision for the City of Lodi and its Citizens. They all work hard to
accomplish this vision and should not be disparaged for their efforts to
accomplish this vision.
Having been a regular participant at these Council Meetings and I
understand the Cities need for more money to accomplish this vision
and sometimes the creative moves by the City to acquire these monies.
Unfortunately some of these moves are creating an unfair burden on
the Citizen Utility rate payers of this City. As I have stated here before,
41 % percent of the Citizens are low income households. The City is
making it a hardship on low income and retired fixed income individuals
to afford to live in the City of Lodi with numerous annual rate increases.
In 2001 Water, Sewer and Garbage cost $39.95 a month. Now it is
about $110.00 an overall increase of close to 300 percent. At the
current rate of increase it will cost around $160.00 a month in about 4
years.
Now after studying City operations, where you have subsidized the
Developers with about $11,000,000 million dollars in reduced building
impact fees, skirted the regulations of Prop 13, 218 and created more
rate payer debt with Certificates of Participation loans and therefore
put Utility Rate Payers on the hook for more rate increases. Giving
Developers about a 59 % percent decrease in impact fees when those
monies would give the rate payers some relief, I don't have much
sympathy left for the City and its desire to continually add costs to the
Utility budgets.
As I stated last month I was disappointed the City did not come back
with proposals that would hold the budget to the same as last years,
without increases. You did not reduce this year's meter program to
match the same as last years. You could have postponed some water
well programs, especially since this is a wet year and more WID water is
available through the treatment plant. Looking at the following years
budgets the meter programs could be balanced to match previous
years. The 2 million dollar South Water Tank could be pushed out,
especially if Developer Impact Fees are not available to pay for it.
Again, going back to the fact that the City reduced these fees and will
push the cost into the budget, thereby raising the rates to pay for it.
The City still has not paid back the monies borrowed from the Water
Impact Mitigation Fund it borrowed 16 years ago for Fire House 4 which
is still over a million dollars.
am not in favor of issuance of Certificates of Participation (COP's)
borrowing. Using these to pay for Capital increases in the budgets only
increases the debt load and increases rates to the Utility rate payers.
The City uses COP's like leasing a car and turning in the previous COP
with a balance left with a balloon payment. Then add it to a new car
lease or in this case a new COP extending the amount monies paid
because of the longer duration of the debt. I believe this to be true
even when the City might use the reasoning the new loan is at a lower
interest rate. The longer time line still costs more money.
Therefore I am against any increase in the Water Utility rate or any
of the other Utilities just because the ENR factor has increased. I am
only concerned with what does it cost to operate and how much of that
operational cost justifies a rate increase.
So on behalf of the Citizen Rate Payers of the City of Lodi I am
submitting this claim for reimbursement on monies raised by the City of
Lodi for the Recycled Water at the White Slough Treatment Plant and
placed into the General Fund and not to the Water Utility and thereby
not reducing budget costs and causing rate increases.
Respectfully
Mike Lusk, Lodi
Page 3 of 3 February 15, 2017
Jr U
LODI CITY COUNCIL
LODI CITY MANAGER
RECYCLED WATER CLAIM Feb 15, 2017
THIS IS A CLAIM ON BEHALF OF THE CITIZEN RATE PAYERS OF THE LODI WATER
UTILITY ENTERPRISE
Claim to have the City of Lodi reimburse the Lodi Water Utility Enterprise the
value of Recycled Water used in past years through the current year and future
revenue years the dollar value of Recycled Water provided to the Land Lease
Customers located at the White Slough Water Pollution control Facility
(WSWPCF) including the LEC, NCPA, San Joaquin Mosquito and surrounding
agricultural leases. The value of which has been placed in the City of Lodi
General Fund.
The City has taken this Recycled Water resource and used it for the General
Fund Benefit without properly compensating the Citizens of Lodi and the Water
Utility Enterprise. The City has placed a value on this resource in the past and
then used this value as a bargaining advantage for projects that benefit the
General Fund to the disadvantage of the Water Utility and by doing so has
inflated the Water Utility budget causing unfair rate increases on the Citizens of
Lodi. This action as well as the Cities borrowing from the Water Impact
Mitigation Fee Fund and not paying those monies back in a timely manner effect
the total gross revenues and net revenues of the Water Utility budget. The loss
of revenue to the Water Impact Fee Fund as a result of the City's action to
reduce these impact fees to the Developers also impacts Capital funding and
increases the burden on the Rate Payers. This in turn affects how the 2010
Water Revenue Bonds are not covered by Impact Fees and increase the size of
the Water Utility Budget requiring rate increases to cover the shortfall in the
budget revenues. In this instance as well as the purpose of this claim the City is
failing to provide the monies guarantee specified for the lien on revenues in the
bonds. (Refer to October 6, 2010 Agenda Item J-1).
Page 1 of 38
The documented value of the Recycled Water at White Slough established by
the City of Lodi as noted in document references included in this claim is $600
and acre foot (AF) to as high as $750+ AF to $900 AF. (Refer to Lodi City Council
Meeting of September 2, 2009 Agenda Item K-1).
The monetary amount of total claim to be determined by an audit to be paid
for by the City of Lodi not the rate payers of any City Enterprise.
Examples of revenues not placed into the Water Utility Enterprise are:
Start with the $960,000 annual payment for recycled water starting when the
NCPA plant opened in 2013 but was buried in the Lease and paid to the General
Fund. 2013 to 2017 abt 5 years equals for the minimum usage of 1600 AFY
amounts to at least $4,800,000. Plus the Annual 2.5% increases.
NCPA STIG Plant in operation about 1995 to 2013 uses 127 AFY plus annual
increases.
San Joaquin Mosquito fish -rearing ponds 50 AFY 1994 to present plus any
annual increases.
Mike Lusk Note: Refer to supporting documents included below.
EXAMPLE: The land leases for NCPA were $40,000 and $20,310 STIG to go to the
General Fund. In documents listed below the Recycled Water Usage $960,000
annually was to be billed separately and would go to the Water Utility
Enterprise revenues. The final agreement was for a flat $1,000,000 all going to
the general fund with the water wrapped into the land lease.
Page 2 of 38
The State of California has been promoting recycled water use even before
1991. The following was taken from the California Health Laws Related to
Recycled Water, "The Purple Book", Excerpts from the Health and Safety Code,
Water Code, and Titles 22 and 17 of the California Code of Regulations. Last
Update: June 2001. Last updated January 1, 2009 and reading the same as the
2001 update.
WATER CODE
Division 7. Water Quality
Chapter 2. Definitions
13050. Terms used in this division
As used in this division:
(n)"Recycled water" means water which, as a result of treatment of waste, is
suitable for a direct beneficial use or a controlled use that would not otherwise
occur and is therefor considered a valuable source"
Chapter 7.5 Water Recycling Act of 1991
13575. Recycling Act title
(a) This chapter shall be known and may be cited as the Water Recycling Act of
1991.
(b) As use in this chapter, the following terms have the following meanings:
(1) "Customer" means a person or entity that purchases water from a retail
water supplier.
(2) "Entity responsible for groundwater replenishment" means any person or
entity authorized by statute or court order to manage a groundwater basin and
acquire water for groundwater replenishment.
Page 3 of 38
(3) "Recycled water producer" has the same meaning as defined in subdivision
(n) of Section 13050.
(4) "Recycled water producer" means any local public entity that produces
recycled water.
(5) "Recycled water wholesaler" means any local public entity that distributes
recycled water to retail water suppliers and which has constructed, or is
constructing, a recycled water distribution system.
(6) "Retail water supplier" means any local entity, including a public agency,
city, county, or private water company, that provides retail water service.
(7) "Retailer" means the retail water supplier in whose service area is located
the property to which a customer requests the delivery of recycled water service.
Mike Lusk Note: The City of Lodi has long since established that the recycled
water has value. The only preclusion for its use in the past was the cost of
infrastructure to carry that water from White Slough to the Lodi City Limits. This
decision does not cancel out the monetary value of recycled water. Therefore its
use at the White Slough location still carries a monetary value and its delivery to
customers such as NCPA and San Joaquin County holds such value and should be
reallocated to the City of Lodi Water Utility budget.
Noting the Agenda Item C-16 of Regular City Council Meeting of March 6, 2013
the wording of the item expressly shows the Cities intention to divert revenue
from the Water Utility Enterprise by burying the cost of Recycled Water into a
lease agreement that originally was for only $60,231 and transferring the entire
amount into the General Fund as a land lease payment.
Page 4 of 38
Source: City of Lodi, June 6, 2012, City Managers Message in the 2012-2013 City
Of Lodi Financial Plan and Budget: Page 5 item General Fund—"General Fund
revenues are projected to be $654,600 higher than the prior year. Total FY
2012/13 General Fund revenue is budgeted at $41,909,940. The key new
revenue source to the General Fund is $960,000 coming from the sale of treated
wastewater to the Norther California Power Agency for use in its Lodi Energy
Center power plant. The addition of Costco and Home Depot, along with other
businesses to the tax base help to replace revenues lost during the
recession.":(end of quote).
Page 5 of 38
CITY OF LODI Agenda Item C-16
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Approve Second Amended and Restated Ground Lease with Northern
California Power Agency (NCPA) for Lodi Energy Center and Terminating the Agreement to
Supply Recycled Water
MEETING DATE: March 6, 2013
PREPARED BY: City Attorney's Office
RECOMMENDED ACTION: Approve Second Amended and Restated Ground Lease with
Northern California Power Agency (NCPA) for Lodi Energy Center and Terminating the
Agreement to Supply Recycled Water
BACKGROUND INFORMATION: Attached is a draft Seconded Amended Ground Lease for the
Lodi Energy Center's location at White Slough. The revised lease rolls the Water Supply
agreement into the Lease. As re -constituted,
NCPA will be paying 1,000,000 per year in rent and the water will be supplied at no cost,
sharing the same structure as the agricultural leases at White Slough. The City has also agreed
to grant, NCPA a five year exclusive right to locate a new plant on the site, and agreed to a rent
reduction in the event of water supply interruptions. The remainder of the business terms are
unchanged.
FISCAL IMPACT: Loss of unknown potential revenue for water use over the base allocation.
FUNDING AVAILABLE: None Required.
Stephen Schwabauer
City Attorney
LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MARCH 6, 2013
C-16 Approve Second Amended and Restated Ground Lease with Northern California Power
Agency for Lodi Energy Center and Terminating the Agreement to Supply Recycled Water (CA).
Mike Lusk Note: end of minute except.
Page 6 of 38
Minutes and agenda item k-1 of Sept. 2, 2009
LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, SEPTEMBER 2, 2009
K-1 Consider Authorizing the City Manager to Enter into Memorandum of Understanding
between Northern California Power Agency and the City of Lodi Regarding the Lease, Development, and
Cleanup of the Lodi Energy Center Site (CA).
City Manager King briefly introduced the subject matter of the Memorandum of Understanding
(MOU) between the Northern California Power Agency (NCPA) and the City of Lodi for the clean
up of the Lodi Energy Center. Mr. King and Mr. Schwabauer provided a PowerPoint presentation
regarding the proposed agreement and specifically discussed the history associated with the
ground lease, land lease terms, water supply, environmental mitigation and clean up, additional terms,
and financial benefits.
In response to Mayor Hansen, Mr. Schwabauer stated the San Joaquin Council of Governments
(SJCOG) has advocated for land in lieu of a fee because SJCOG understands that money would
not necessarily buy a habitat. Mr. Schwabauer stated in addition the SJCOG program is not
available here and the process would go through the Fish and Wildlife organization instead.
In response to Council Member Hitchcock, Mr. Schwabauer stated SJCOG has indicated that
there is no other garter snake habitat available in Northern California. Mr. Schwabauer stated the
comparable must be with garter snake habitats and there are no other improvements required for
the site as may be needed if the City goes through another regulatory process.
In response to Council Member Hitchcock, Mr. King stated with respect to an appraisal some
language is taken from the State agreement. Mr. King also reviewed the terms of the former
steam injected gas turbine lease and the history associated with the same. Mr. Schwabauer
stated the terms specifically require that the appraisal will be completed by a mutually acceptable
party.
In response to Council Member Hitchcock, Mr. King stated lease payments for City -owned
facilities generally go into the general fund although some go into park related funds based on
parks and recreation functions.
In response to Mayor Hansen, Mr. King confirmed the lease itself will go up to $60,000, totaling
$1.2 million per year to start out.
Council Member Hitchcock made a motion, second by Mayor Hansen, to authorize the City
Manager to enter into an MOU between NCPA and the City of Lodi regarding the lease,
development, and cleanup of the Lodi Energy Center site.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Hitchcock, Mayor Pro Tempore Katzakian, and Mayor Hansen
Noes: None
Absent: Council Member Johnson, and Council Member Mounce
Page 7 of 38
Minutes and agenda item k-1 of Sept. 2, 2009
AGENDA ITEM K-1
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Consider Authorizing City Manager to Enter into Memorandum of
Understanding between NCPA and the City of Lodi Regarding the Lease, Development and
Cleanup of the Lodi Energy Center Site.
MEETING DATE: September 2, 2009
PREPARED BY: City Attorney's Office
RECOMMENDED ACTION: Authorize City Manager to Enter into Memorandum of
Understanding between NCPA and the City of Lodi Regarding the Lease, Development
and Cleanup of the Lodi Energy Center Site.
BACKGROUND INFORMATION: Staff has reached tentative agreements with NCPA staff
regarding the lease for the Lodi Energy Center (LEC), purchase of recycled water, giant
garter snake mitigation and the cleanup of residue from sludge deposited on the Lodi
Energy Center site. As referenced, the negotiations are tentative and must be approved by
the City Council and the LEC membership. The major terms of various tentative agreements
are summarized below:
A) Lease:
Rent: $40,000 per year on top of existing STIG lease of $20,310 annually.
2.5% annual escalator.
Market Rate Adjustment every 10 years not to exceed +/- 25%.
Term: To 2043 with 50 -year option.
City to relocate existing monitoring well at its expense.
B) Water Supply:
LEC to purchase 1,600 acre feet per year (AFN), "take or pay" at $600/AF ($960,000/year).
LEC option to purchase additional 200 AFN at $750 AF (up to $150,000/year).
LEC option to buy water above 1,800 AFN at $900/AF (unlikely to occur).
One time connection charge of $300,000.
2.5% annual escalator
Market adjustment every 10 years maximum +/- 25%.
C. Giant Garter Snake Mitigation:
City to dedicate 21 acres on northwest side of treatment plant and along Peripheral Canal
alignment for Giant Garter Snake Habitat Remediation.
Price: $24,000 per acre (Total $504,000).
D. Environmental Cleanup.
The LEC site was historically used to store sewer sludge, primarily during periods that the
Page 8 of 38
sludge ponds needed maintenance. It is possible that this storage caused several
contaminants that have been found on site including metals, pesticides and combustion
byproducts.
NCPA and City staff have tentatively agreed to the following remediation program.
a) City to enter Voluntary Cleanup Agreement with Department of Toxic
Substances Control (DTSC) and perform cleanup. City to pay consultant and
DTSC costs currently estimated at $100,000 to $300,000.
b) LEC to excavate and load soil at its expense.
c) City to pay trucking and disposal costs currently estimated at $320,000 to
$1.3 million.
d) LEC to front all cleanup costs as a credit against LEC's payment obligations
to City.
FISCAL IMPACT: Up to $1.6 million in costs in Year One offset by minimum revenue of
$1.8 million in Year One and minimum revenue of $1 million in Year Two and following.
FUNDING AVAILABLE: Costs to be advanced by LEC as a credit against Year One and
Two revenues.
111
Stephen Schwabauer
City Attorney
Mike Lusk Note: end of notes and and agenda item k-1 of Sept. 2, 2009_
Page 9 of 38
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MAY 5, 2010
J. Regular Calendar
J-1 Adopt Resolution Certifying Concurrence with California Energy Commission
Environmental Findings and Approving Agreements with the Northern California Power
Agency for Power Sales, Project Management and Operation, Ground Lease, and
Recycled Water Supply (EUD)
City Manager King provided a brief introduction to the subject matter of the Lodi Energy Center
(LEC).
Interim Electric Utility Director Ken Weisel provided a PowerPoint presentation regarding the
LEC. Specific topics of discussion included an overview, LEC statistics, ownership, cost
summary, participants, approval schedule, California Environmental Quality Act compliance,
power sales agreement, project management and operations agreement, September
Memorandum of Understanding, and recommended approvals.
In response to Council Member Mounce, Mr. King stated the City is selling treated water that has
little value on the market to Northern California Power Agency (NCPA) at $600 per acre foot, with
a guarantee of 1,600 acre feet, for an approximate value of $1 million. Mr. King stated NCPA can
purchase another 200 acre feet for $750 per acre foot, and anything above that amount will be
$900 per acre foot. Mr. King stated he believes this is a good deal for NCPA and a good value to
the City for a commodity that would otherwise go to the Delta.
In response to Mayor Katzakian, Mr. Sandelin stated the City will generate less than 15,000 acre
feet per year at the plant.
Ann Cerney questioned the Garter snake easement and the adequacy of the land mitigation. City
Attorney Schwabauer provided a review of the Garter snake mitigation, which was needed based
on the location of the plant. Mr. King stated the agreement between the City and NCPA was the
result of aggressive negotiations and both sides will benefit as a result.
Council Member Hansen made a motion, second by Mayor Pro Tempore Hitchcock, to adopt
Resolution No. 2010-58 certifying concurrence with California Energy Commission environmental
findings and approving agreements with the Northern California Power Agency for power sales,
project management and operation, ground lease, and recycled water supply.
VOTE:
Page 7
Continued May 5, 2010
The above motion carried by the following vote:
Ayes: Council Member Hansen, Council Member Johnson, Council Member Mounce, Mayor
Pro Tempore Hitchcock, and Mayor Katzakian
Noes: None
Absent: None
Page 10 of 38
Page 8 (end of quote).
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
RESOLUTION NO. 2010-58
A RESOLUTION OF THE CITY OF LODI MAKING FINDINGS AS A
RESPONSIBLE AGENCY UNDER CEQA; APPROVING THE LODI ENERGY
CENTER POWER SALES AGREEMENT AND THE PROJECT MANAGEMENT
AND OPERATION AGREEMENT; AND APPROVING THE LODI ENERGY
CENTER AMENDED AND RESTATED GROUND LEASE AGREEMENT AND
AGREEMENT TO SUPPLY RECYCLED WATER
WHEREAS, Lodi has elected to participate in the 280 MW (nominal) Lodi Energy Center
(LEC) being developed by the Northern California Power Agency (NCPA); and
WHEREAS, Lodi's Generation Entitlement Share in the LEC is 9.3561 % or a nominal
26.20 MW; and
WHEREAS, the California Energy Commission (CEC) has approved the LEC Application
for Certification (AFC) on April 21, 2010, and such approval by the CEC includes various
environmental analysis, findings and mitigation measures under the terms of the Warren-
Alquist Act (Public Resources Code Section 25500 et seq.). The CEC's analysis, findings,
and mitigation measures constitute the equivalent of an environmental impact report for
purposes of the California Environmental Quality Act (CEQA, Public Resources Code
Section 21000 et seq.) as a "certified regulatory program" pursuant to CEQA Guidelines
Section 152510). The CEC has acted as the "lead agency" for this Project for purposes of
environmental analysis. As a consequence, rather than conducting its own independent
environmental analysis under CEQA, Lodi is acting as a "responsible agency" under CEQA
and is thus responsible for considering the analysis, findings, and mitigation measures of
the CEC and reaching Lodi's independent conclusions on whether and how to approve the
LEC (CEQA Guidelines Section 15096); and
WHEREAS, Lodi, acting as a responsible agency, has independently considered the
analysis, findings, and mitigation measures prepared by CEC as reflected in Exhibit A
attached to this Resolution; and
WHEREAS, NCPA and Participants have prepared a Power Sales Agreement (PSA),
which upon execution by all the LEC Participants and NCPA will permit financing,
construction, and operation of the Project; and
WHEREAS, the Lodi City Council understands that, if one or more other Project
Participants reduce or increase their Generation Entitlement Share (GES), Lodi may revise
its GES to a GES between a minimum of 8.57% and a maximum of 10% to effectuate
Project financing and construction; and
Page 11 of 38
WHEREAS, the City of Lodi is desirous of NCPA managing and operating the LEC on its
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
behalf, and on behalf of other Project participants, and NCPA and Participants have
prepared a Project Management and Operation Agreement (PMOA), which upon execution
by LEC Participants and NCPA provides for LEC management and operation by NCPA; and
WHEREAS, the City of Lodi acknowledges that the PSA forms a Project Participant
Committee (PPC), which will provide Project governance and to establish, and from time to
time revise, directives related to LEC capital expenditures, budgets, operations, and
maintenance, among other items, and that Lodi is to designate a Lodi official responsible for
serving as Lodi's representative and alternate representative on the PPC; and
WHEREAS, NCPA and the City of Lodi have prepared an Amended and Restated
Ground Lease Agreement, which upon execution by the City of Lodi and NCPA will provide
payment to the City of Lodi for the LEC's location and use of land owned by the City of Lodi
for the life of the LEC; and
WHEREAS, NCPA and the City of Lodi have prepared an Agreement to Supply
Recycled Water, which upon execution by the City of Lodi and NCPA will provide recycled
water to LEC from the City of Lodi's White Slough Water Pollution Control Facility for the life
of the LEC.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby acting in its
capacity as a responsible agency for purposes of CEQA makes the findings as provided in
Exhibit A of this resolution and hereby directs the City Manager or his designee to record a
Notice of Determination in the County of San Joaquin reflecting these findings; and
BE IT FURTHER RESOLVED that the City Council hereby approves the Power Sales
Agreement and the Project Management and Operation Agreement, authorizes the City
Manager or his designee to execute these two agreements with such non -substantive
changes as the City Manager finds beneficial on behalf of Lodi and to adjust Lodi's
Generation Entitlement Share as reflected in the PSA and PMOA to between a minimum of
8.57% and a maximum of 10% to effectuate Project financing and construction, and
authorizes the Electric Utility Director to administer these agreements; and
BE IT FURTHER RESOLVED that the City Council hereby designates the Electric Utility
Director or his designee as the Lodi's representative on the PPC and authorizing the
Electric Utility Director to designate alternate representatives and notify NCPA of such
designations; and
BE IT FURTHER RESOLVED that the City Council hereby approves the Amended and
Restated Ground Lease Agreement and the Agreement to Supply Recycled Water between
NCPA and the City of Lodi, authorizes the City Manager or his designee to execute these
Page 12 of 38
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
agreements with such non -substantive changes as the City Manager finds beneficial on
behalf of the City of Lodi, and authorizes the City Manager or his designee to administer
these agreements.
Dated: May 5, 2010
I hereby certify that Resolution No. 2010-58 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held May 5, 201 0, by the following vote:
AYES: COUNCIL MEMBERS - Hansen, Hitchcock, Johnson, Mounce, and
Mayor Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
Jo
RAND1 JOHL
City Clerk
2010-58
Page 13 of 38
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
EXHIBIT A
EXHIBIT A
ENVIRONMENTAL FINDINGS
The City of Lodi (Participant), as a Participant in the Lodi Energy Center (Project), makes
the following findings pursuant to the California Environmental Quality Act ("CEQA"),
Public Resources Code section 21000 et seq., and the Guidelines implementing CEQA
("CEQA Guidelines") Code of Regulations, title 14, section 15000 et seq.
1. The California Energy Commission ("CEC`) is the lead agency for this Project under
CEQA.
2. The CEC is a certified regulatory agency pursuant to CEQA section 21080.5 and CEQA
Guidelines sections 15250 -15253.
3. As a certified regulatory agency, rather than an Environmental Impact Report ("ER"),
the CEC prepares an "EIR substitute" as the CEQA documentation for the Project.
4. The CEC's EIR substitute for this Project is the Presiding Member's Proposed
Decision ("PMPD") released on March 10, 2010, as supplemented by the "Errata to the
Presiding Member's Proposed Decision" dated April 20, 2010, and approved by the CEC on
April 21, 2010 without further substantive change
5. Participant is a responsible agency for the Project under CEQA.
6. Participant finds that the CEC's process meet all of the conditions of CEQA Guidelines
section 15253 that would allow Participant to use and rely upon the CEC findings.
Specifically, Participant finds that:
a. The CEC is the first to grant a discretionary approval for the Project.
b. The CEC provided Participant the opportunity to consult with the CEC and to
comment on the PMPD.
c. The PMPD considers both the significant environmental impacts of the Project
that are within the jurisdiction of the Participant, if any, and considers alternatives
to the Project.
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
Page 14 of 38
d. The CEC exercised its powers as lead agency by considering all of the
environmental impacts of the Project and made the appropriate findings pursuant
to CEQA Guidelines section 15091 for each significant impact of the Project.
7. Participant has considered the PMPD and the environmental impacts of the Project
described in the PMPD, pursuant to CEQA Guidelines 15096 subdivision (f).
8. The PMPD concludes that, as conditioned, the Project will not have any significant
adverse effects on the environment. Thus, pursuant to CEQA Guidelines 15096
subdivision (g), Participant finds that there are no alternatives or mitigation measures
within the powers of Participant to adopt that would substantially reduce or avoid any
significant environmental impact of the Project.
9. Pursuant to CEQA Guidelines 15096 subdivision (h), Participant is required to make
findings pursuant to CEQA Guidelines section 15091 for each significant impact of the
Project. Participant has ,considered the PMPD, the description of the Project's
environmental impacts contained therein, the findings of fact and conclusions of law
contained therein, and the conditions of certification contained therein, and, exercising
its independent judgment, Participant finds the following:
a. For all environmental impacts of the Project, changes or alterations have been
required in, or incorporated into, the Project which will avoid or substantially
lessen the significant environmental effects as identified in the PMPD.
b. These findings are supported by substantial evidence in the record.
c. The conditions of certification imposed on the Project by the CEC are within the
authority of the CEC and will be monitored and enforced by the CEC.
10. That approval of both the Power Sales Agreement and Project Management and
Operation Agreement, providing for the financing, construction and operation of the
Project has no impacts on the environment not addressed within the prior CEC analysis.
(Mike Lusk Note: End of resolution 2010-58 and exhibit A of May 5, 2010.)
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
Page 15 of 38
AGREEMENT TO SUPPLY RECYCLED WATER
This Agreement To Supply Recycled Water ("Agreement"Js made on
(the "Effective Date")between Northern California Power Agency ("NCPA), a joint
powers agency, and the City of Lodi ("Lodi")g municipal corporation, (Lodi and NCPA
are herein referred to singularly as "Party" and collectively as "Parties") in order to
provide recycled water from the Lodi Waste Water Treatment Plant to NCPA for use in
conjunction with its power generating facilities, including without limitation, NCPAs Lodi
Energy Center, a combustion turbine power plant (" LEC or "Project").
RECITALS
E. The Parties are authorized to enter into this Agreement pursuant to the following
laws, regulations and orders:
(i) NCPAs enabling legislation, Amended and Restated Joint Powers
Agreement dated January 1, 2008, which permits NCPA to construct, operate, and
maintain facilities for the generation and transmission of electric power;
(ii) California Code of Regulations, Title 22, Division 4, Chapter 3, which
provides standards for Recycled Water quality; and
(iji) The State Water Resources Control Board ("SWRGB") Recycled Water
Policy and the associated implementing resolution (State Water Board Resolution No.
2009-0011), and additional pertinent orders as the SWRCB or the Regional Water
Quality Control Board ("RWQCB")nay from time to time propound.
2. DEFINITIONS
When used in this Agreement, the terms described below will have the meanings
as set forth in this section:
2.2 "Existing Recycled Water Facilities" means those Lodi Recycled Water
production and delivery facilities on the Lodi WSWPCF site or within Lodi easements
outside the WSWPCF site as of the Effective Date of this Agreement including without
limitation, the filter plant, the filter plant pumps and appurtenances, conveyance facilities
to and from the clearwell, the clearwell, the meter, the clearwell pumping station
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and attached
documents.
Page 16 of 38
including effluent and backwash pumps, the 8 -inch industrial Recycled Water pipeline
from the clearwell to the terminating point at the NCPA CT2 facility, and those Lodi
Recycled Water production, delivery and distribution facilities as of the Effective Date of
the Agreement including, without limitation, Recycled Water storage tanks; generally
shown on Exhibit B (Map).
2.6 "Recycled Water" or "Reclaimed Water" means water that results from
the treatment of wastewater, meets all applicable requirements established from time to
time by pertinent federal or state agencies having jurisdiction and regulating the use of
Recycled Water (including the RWQCB) and that is suitable for appropriate and
approved non -potable uses, including without limitation the requirements of California
Code of Regulations, Title 22, Division4, Chapter 3 specifically for use in a cooling
tower. For the purpose of this Agreement, Recycled Water and Reclaimed Water are
considered synonymous.
7. AGREEMENT TO USE RECYCLED WATER
NCPA hereby agrees to use Recycled Water for the LEC and CT2 Projects.
NCPA agrees to use the Recycled Water for the purposes of generating electricity or for
the use of irrigating landscaping that is associated with its generating facilities. Lodi will
supply Recycle Water to the standards contained in California Code of Regulations,
Title 22, for the specific use in power plants cooling towers.
9. PRICE AND QUANTITY OF RECYCLED WATER FOR THE LEC
Commencing upon the operation of the LEC, or on another mutually agreed upon
date, Lodi agrees to provide Reclaimed Water to the LEC in accordance with California
Code of Regulations Title 22, Division4, Chapter 3 and the following terms:
9.1 Lodi will supply NCPA 1600 acre feet per year ("afy") of Recycled Water,
which will be considered the "Basewater Allocation."
9.2 NCPA will pay for the Base Water Allocation regardless of whether it uses the full
Allotment.
9.3 The initial price for the Base Water Allocation will be $600 per afy ("Price
for Water").
9.4 NCPA may increase its Recycled Water usage from 1600 afy to 1800. In
the event NCPA increases its Recycled Water usage above 1600 afy, it will
pay one hundred twenty-five percent (125%) the Price for Water for any Recycled
Water above1600 afy.
9.5 NCPA will pay for Recycled Water usage above 1800 afy at one hundred fifty
percent (1 50%) the Price for Water.
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and
attached documents.
Page 17 of 38
9 . 6 The Price for Water will increase at a rate of two and one-half percent
(2.5%) per year on the anniversary of the date that water is first supplied to the LEC
under this Agreement.
9.7 On the ten (1 0) year anniversary date of the Effective Date of this
Agreement, either Lodi or NCPA may initiate a review of the then existing Price for
Water based on then existing market circumstances for Reclaimed Water used in an
industrial capacity such as a power plant. Such review will be conducted by a mutually
acceptable objective third party. Any supported adjustment to the then existing Price for
Water shall not exceed more than or less than twenty-five percent (+/- 25%) of the then
existing Price for Water.
10. OBLIGATION TO SUPPLY WATER
Lodi will deliver Recycled Water twenty-four (24) hours per day. Lodi will supply
the Recycled Water year round and will not ration Recycled Water to NCPA in the event
of a drought. The amount of Recycled Water received by NCPA shall be confirmed by
monthly meter readings performed by NCPA. If Lodi fails to supply the minimum
amount in a calendar year then NCPA may take reasonable steps to procure Water
from other vendors or suppliers without affecting its rights under this Agreement.
13. RESPONSIBILITY FOR COMPLIANCE WITH LAW
A. Lodi represents and warrants that is has complied with all laws related to
its ability to sell recycled water and has enacted any and all appropriate resolutions or
ordinances required to sell or provide recycled water to NCPA.
AMENDED AND RESTATED GROUND LEASE
THIS AMENDED AND RESTATED GROUND LEASE (this "Lease" or this
"Agreement"), dated this day of ,201 0 ("Effective Date"),is entered
into by and between the CITY OF LODI, a California municipality ("Landlord"),and
NORTHERN CALIFORNIA POWER AGENCY, a California joint powers agency
("Tenant"). Landlord and Tenant, and their successors and assigns, are singularly
referred to as a "Party" and jointly referred to as the "Parties."
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and
attached documents.
RECITALS
Page 18 of 38
A. WHEREAS, the Parties entered into that certain Ground Lease dated February 17,
1993 ("Original Lease"); and
B. WHEREAS, THE Parties desire to amend and restate the Original Lease in its
entirety as set forth below.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree that the Original Lease is fully
amended and restated as follows:
1. Definitions. When used in this Agreement, the terms described below will have
the meanings as set forth in this Section.
1.1 "Base Rent" is the rent for the CT2 site under the Lease and is defined further in
Section 7.1.1.
1.2 "Commencement Date" means January 1, 1993, the date that the Lease
commenced.
1.3 "CT2 Project" refers to the Combustion Turbine 2 Project, which is a
LM5000 simple cycle electrical generating facility rated at a nominal generating capacity
of 49.9 megawatts. The CT2 is located in Lodi, California on property near the City of
Lodi White Slough Water Pollution Control Facility.
1.4 "Easement Area" refers to the easement on the east side of the Leased
Premises for the construction of a road and is more fully defined in Section 3.
1.5 "Effective Date" means the date first written above upon which the Parties
entered into the Amended and Restated Lease.
Page 4 of 25
1.6 "Landlord" refers to the City of Lodi, a California municipality.
1.7 "Leased Premises" or Premises" refers to the real property in the City of
Lodi that is the subject of this Lease, as more fully described in Section 2.
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and
attached documents.
1.8 the "Lodi Energy Center" ("LEC") will be a natural gas fired, combined -cycle
electrical generating facility rated at a nominal generating capacity of 255 megawatts
(MW). The LEC is proposed to be constructed on a parcel of approximately 4.4 acres
located adjacent to the Lodi WSWPCF to the east, treatment and holding pons
Page 19 of 38
associated with the WSWPCF to the north, the existing CT2 (STIG plant) to the west,
and the San Joaquin County Mosquito and Vector Control facility to the south.
1.9 The "LEC RENT" means the rent to be paid for the portion of the Leased
Premises to be used for the LEC and is more fully defined on Section 7.2.1.
1.10 The "Original Lease" refers to that certain Ground Lease dated February
17, 1993.
1.11 "Offer" refers to a bonafide offer from a third party to purchase all or a
portion of the Leased Premises.
1.12 "Party" singularly refers to either the Landlord or the Tenant and "Parties"
refers to the Landlord and Tenant collectively.
1.13 "Project" refers to the construction, operation and maintenance of gas
turbine power generation plant and incidental ancillary uses including without limitation,
the transmission of energy.
1.14 "Tenant" refers to the Northern California Power Agency, a California joint
powers agency.
1.15 "Term" refers to the term of the Lease as defined in Section 6.
1.16 "Utilities" refers to various utility lines, pipelines and a test well located on
or below the Leased Premises.
Page 5 of 25
Skip to section 7.
Minutes and excerpts of Resolution No. 2010-58 of May 5, 2010 Agenda Item J-1 and
attached documents.
7. Rent
7.1 Rent for CT2 Site.
7.1.1 Annual Rent. On or before July 1, of each year during the term of this
Lease, Tenant agrees to pay to Landlord in advance annual rent ("Base Rent") in the
amount of Twenty Thousand Three Hundred Ten Dollars ($20,310) for the following
Lease Year (i.e., each twelve (12) month period during the term of this Lease,
commencing on July 1 and ending on June 30).
Page 20 of 38
7.2 Rent for LEC
7.2.1 Annual Rent. In addition to the Base Rent, commencing upon the
earliest of the date upon whch: (i) the California Energy Commission issues the AFC
License for the Lodi Energy Center Unit Project ("LEC"), (ii) the Project Participants
execute the Phase 3 agreements supporting construction of the LEC, or (iii) the Project
Participants execute Power Purchase Agreements supporting construction of the LEC,
Tenant agrees to pay to Landlord advance annual rent in the amount of Forty Thousand
Dollars ($40,000) (the "LEC Rent") on or before July 1 of each year for the following
Lease Year. For the initial Lease Year for which LEC Rent is payable pursuant to this
Section 7.2.1, the LEC Rent shall be prorated on the basis of 365 day year and shall be
payable for the number of days remaining in such initial Lease Year.
7.2.2 Annual Rent Adjustments. During the ten (10) year period commencing
on July 1 of the first full Lease Year after the obligation to pay LEC Rent commences,
the LEC Rent will increase by two and one half percent (2.5%) annually starting after
the first full year. The rental increase will go into effect on July 1st of each year.
Page 8 of 25
Mike Lusk Note: End of excerpts of May 5, 2010.
Page 21 of 38
CITY 0FLonl.
r
COUN CIL COMMUNICATION
1GENDA TITLE: Public Hearing 10 Consider Adopting the Update of Lodi's Urban Water Management Plan
/IEETING DATE:' July 18, 2001
'REPARED BY: Public Works Director
2ECOMMENDED ACTION: That the City Council conduct a public hearing to consider the adoption of Lodi's updated
Urban Water Management Plan.
3ACKGROUND INFORMATION: During the 1983/84 Regular Session, the California Legislature enacted Assembly
Bit 797, and as amended subsequently, created Water Code Section 10610, et seq.,
known as the Urban Water Management Planning Act. This Act requires the City of Lodi
to review and update the Urban Water Management Plan every five years. This is the
hird update of Lodi's Urban Water Management Plan. The adoption process requires a public hearing and adoption by the
;ity Council.
he updated Urban Water Management Plan was prepared by staff with the assistance of Brown 8 Caldwell, an engineering
:onsulting firm. The plan updates Lodi's historical and projected population and water use, and analyzes Lodi's sustainable
groundwater supply quantity. The plan also reviewed fourteen water conservation best -management practices of which six
vere analyzed in more detail for economic feasibility.
\ copy of the draft Urban Water Management Plan was included with the Council Communication for setting the public
searing. Two published notices of public hearing announced the availability of the draft plan and the date of this public
learing•
-
rhe "Conclusions and Recommendations" (Chapter 7) from the Plan are attached. As part of adopting the'Plan, staff is
>eeking specific policy direction in several relatively new areas. They are:
1) Continue our participation in County -wide efforts to provide supplemental water to the area, but also work to
identify conjunctive use or other projects that will reduce Lodi's groundwater consumption to sustainable levels.
2) Direct staff to work with the Planning Commission on development of mitigation measures to reduce the impact to
the groundwater caused by new development
3) Begin installing and reading water meters on all new development.
4) Begin installing and reading water meters on developments that have paid for meters, but have not yet been
installed.
The costs to the City of the last three policy directions are essentially zero, as they are paid by new development. The
potential for future cost savings in reduced need for additional supplies is significant. The cost to read the meters, at least
'or the next few years, is minor and can be handled with existing staff. (The meters use "touch -read" technology—the meter
'ceder touches a hand-held wand to a button on top of the meter lid and the reading is recorded electronically, then
Downloaded to the computer.)
FUNDING: None required.
Richard C. Prima, Jr,
Public Works Director
Prepared by Frank Beeler, Assistant Water/Wastewater Superintendent
RCP/F B/tri• V/f
attachment
Cc: Fran E. Forkas, Water/Wastewater Superintendent John Beckman
Del Kerlin. Assistant Wastewater Treatment Superintendent
tr 1
— C.,,,
APPROVED:
H. Dixon Flynn -- City Manager
C:lwindow \TEMPIUWMPCC 7.01a doc
Page 1
Page 22 of 38
07110101
July 18, 2001 Council Communication agenda Public hearing to consider adopting the
Update of Lodi's Urban Water Management Plan. Page 2
CHAPTER?
CONCLUS] ONS AND RECOMMENDAT] ONS
Based on the results of the evaluation conducted in this report, the following recommendations are
made.
1. While the water supply is adequate to address average years, dry years, and multiple dry
years, the groundwater basin is in a general over draft condition. The City should take steps
Co develop s conjunctive use program to reduce the overall pumping of groundwater.
2. At this tune, h does not appear feasible to partially meet water demands in the City's ■vatcr
service area through use of recycled water. The estimated S7:8 million cost of installing
pumping facilities and n pipeline to convey recycled writer to the service arca from the
wastewater treatment plant is considered to be expensive at this time compared to the cost
of available groundwater. The City should reassess this issue in 5 years and continue to
provide recycled water for reuse on lands surrounding the White Slough Water Pollution
Control Facility to minimize the amount of groundwater pumping in the region.
3. Continue with current water conservation efforts. Consider implementing the cost effective
BMP 5 (Large Landscapes Conservation Programs and Incentives), BMP 9 (C]1
Conservation), BMP 1.4 (Residential ULFI), and BMP 4 (Metering of Residential
Customers). The City should explore partnering with other utilities and funding
opportunities to help implement water conservation BMPs.
4. Track the development of upcoming drinking water standards that may impact the
groundwater supply. These standards include arsenic, radon, and the groundwater rule.
5. To maintain groundwater supply capacity, the City should rehabilitate or replace any older
water mains and wells as they reach the end of their useful lives.
6. Establish a process to measure water savings resulting from BMP irnplementation.
7. Establish a process to keep a record of BMP implementation.
7.6501-..1 CA'pll'\\CAII'\5 .1 0,311 Rcpmi\Chapm 7\Ch2rm, 7.d..
Page 23 of 38
COUNCIL COMMUNICATION
AGENDA TITLE: Whit" Slough Water Polubon Control Fa1:iily (WSWPCF) Leese Agreement with San Joaquin
County Mosquito and Vector Control Disbict
MEETING DATE: Jararaty 19.1994
PREPARED BY: Public Works Director
RECOMMENDED ACTION:
That the Cay Council approve s long-term (20 year) lease agreement between the
City of Lodi and the San Joaquin County Mosquito and Vector Control Matt
(SJCMVCD) and direct the City Manner and the City Cloth to exeat the lease on
behalf of the City.
BACKGROUND INFORMATION: Ina setter dated August 20. 1963 (attached), the SJCHDVC requested an opportunity
to lease City land: City and District stag have met and agreed on an unused
-±12-ase parcel (formerly corral area) viable for the proposed use as a fish rearing
and distribution site for mosquito fish that will be used throughout the north county to
combat mosquitos. The attached Exhibit A shows the 12 -acre parcel and other adjacent uses.
SJCMVCD has agreed to a rental fee of 8225 per acre per year ($2,700 annually). This fee slightly exceeds an adjacent
218 -acre agricultural lease the City has with an area fanner. Additionally, SJCMVCD has agreed to provide vegetation
management (weed control) services to the WSWPCF ponds and irrigation ditches, and provide biological and rodent control
services in the form of technical advice and consultation. The District has offered a wilfngnese for cost sharing of projects
that mutually benefit the City and SJCMVCD (i.e. roadway and fence maintenance).
Tnere win be an annual need of 40 to 60 million ,gallons of water after the Distract constructs the rearing ponds. The City is
exploring several options for supplying this water. Two of those are unchlorinated secondary effluent and/or a high quality
waste stream from Northern California Power Agency's Gas Turbine Electrical Generator. Considerable work would have to
be done to prepare this area for agricultural use, and would only allow us to dispose of 10 to 20 million gallons of effluent
per year.
It is believed the City's best interest will be served by Council approving this lease.
FUNDING: Revenues to be placed in Wastewater Enterprise Fund.
JLR/FEFns
L. Ronsko
Wake Director
Prepared by Fran E. Farkas. Water.:.astawater. Superintendent
cc. San Joaquin County Mosquito and Vector Control District
City Attorney
Assistant Wastewater Treatment Superintendent
Electric Utility Director
APPROVED ._
AWN
THOMAS A PETERSON
Crry Manager
0
uavn 01
Page 24 of 38
001
ewer „ ,ON
2003 VINTNER'S SQUARE SHOPPING CENTER EIR:
Section -Water Recycling and Reuse
"The City of Lodi recycles and reuses treated wastewater from the WSWPCF.
Local farmers that cultivate feed and fodder crops not intended for human
consumption use the recycled water for irrigation. In recent years, the City has
also supplied treated wastewater to the NCPA for the operation of their 49 -
megawatt steam -injected gas turbine plant located near Lodi. Treated
wastewater has also been used to replenish mosquito fish -rearing ponds. Treated
wastewater that cannot be reused or recycled is stored in holding ponds and
further treated before it is discharged into the Delta."
The City of Lodi has recognized the value of recycled water in numerous past
statements, management plans and reports.
CITY OF LODI 2005 URBAN WATER MANAGEMENT PLAN, FINAL REPORT MARCH
2006 ----
Chapter 1 Introduction
This 2005 City of Lodi Urban Water Management Plan (UWMP) was prepared in compliance
with the Urban Water Management Planning Act, as amended. It includes all information
necessary to meet the requirements of California Water Code, Division 6, Part 2.6.
1.1 Background
1.1.1 Urban Water Management Act
The Urban Water Management Act (Act) was created by Assembly Bill 797 (AB 797) which was
signed into law by Governor Deukmejian on September 21, 1983. The Act requires that urban
water suppliers (i.e. municipal water suppliers providing water for municipal purposes to more
than 3,000 customers or supplying more than 3,000 AF annually) prepare and adopt Urban Water
Management Plans containing certain specified elements.
The Act was amended by Assembly Bill 2661 (AB 2661), which was signed into law by
Governor Deukmejian on July 18, 1990. AB 2661 deleted the January 1, 1991 termination date
specified in AB 797. AB 2661 also expanded the elements which are to be addressed in Urban
Water Management Plans.
The Act was also amended by Assembly Bill 1869 (AB 1869), which was signed by
Governor Wilson on October 13, 1991. AB 1869 requires that urban water suppliers
update (not just review) Urban Water Management Plans every five years to include
projections of both potable and recycled water use, identify current reclamation
Page 25 of 38
practices, address additional alternative conservation measures, and describe findings,
actions, and planning related to a number of water conservation and reclamation
measures.
1.3 Plan Updates
This 2005 UWMP serves as an update to the City's 2000 UWMP. The City's UWMP
was first developed in 1990, and addressed water supply and demand for the City. The
1990 Plan and 1995 Plan update were prepared by the City. The 1995 Plan update
included a description of the water system, historical and projected water use, water
supply alternatives, recycled water use, water conservation programs, and a water
shortage contingency plan. The 2000 Plan update (prepared by Brown and Caldwell)
added discussions of water supply constraints, detailed economic analyses of the
City's best management practices for water conservation, and descriptions of the
City's wastewater system.
3.1.5 Current Recycled Water Supply
The City's wastewater discharge permit requires an agronomic application rate.
According to discussions with City staff, approximately 2,500 AFY of secondary treated
recycled water is currently used, primarily for irrigation in the area surrounding
WSWPCF. This represents approximately 35 percent of the total treated wastewater
produced at WSWPCF. The City discharges the non -irrigation water, treated to Title
22 tertiary standards, to the Delta. The Utility currently lacks the necessary infrastructure
to distribute additional recycled water to more of its customers.
For a more detailed discussion of the City's recycled water supply, as well as the
processes by which it is treated, refer to Chapter 8.
3.2.4 Future Recycled Water Supply
As discussed in Section 3.1.5, the City currently treats approximately 7,200 AFY of
wastewater at WSWPCF, of which 2,500 AFY is recycled in the vicinity of WSWPCF.
WSWPCF has adequate capacity to treat all wastewater flows to Title 22 standards. The
City is in the process of developing a Recycled Water Master Plan (RWMP) that will
outline additional distribution of this supply to the Utility's customers. For the purposes
of this UWMP, all treated wastewater produced at WSWPCF has been treated as recycled
water supply and is included in Table 3-5 below. The amount of recycled water available
increases with time, because as the City's population increases, the amount of wastewater
available for reclamation will also increase. For a more detailed discussion of recycled
water supply projections, refer to Section 8.6
8.5 Wastewater Disposal
Most of the treated effluent from WSWPCF is recycled during the summer months.
Currently, an average annual volume of 2,500 AF is recycled. During the winter
months, all treated effluent is discharged to White Slough, which is part of the San
Joaquin Delta. Adjacent to WSWPCF, the City owns in excess of 1,000 acres of land
and leases approximately 650 acres to local farmers for the cultivation and harvesting
of feed and fodder crops not intended for human consumption.
Page 26 of 38
WSWPCF has the flexibility to irrigate with domestic flow and/or cannery process
water. All of the industrial process water influent is recycled for irrigation and
ponding. If a process upset should occur, the domestic flow can be stored in holding
ponds and further treated before discharging water to the Delta. In recent years, the
City has also supplied recycled water from the domestic treatment process to produce
steam for a 49 -megawatt natural gas -powered generator, and to replenish mosquito
fish -rearing ponds. In addition, the City has provided a "will serve" letter to the
Northern California Power Agency (NCPA) for a potential power plant that will
utilize an average of 1 mgd of treated wastewater. The remaining effluent is disposed
of in the Delta. With the upcoming development of a RWMP, as well as additional
recycled water infrastructure, the amount of treated wastewater discharged to the
Delta will likely decrease as demand for recycled water increases.
City of Lodi Recycled Water Master Plan November 2008 final part of the General
Pian.
RMC Water and Environment, 2008,
Chapter 3: Growth Management and Infrastructure 1 3-15
Recycled Water
The City manages about 7,800 acre-feet per year of
influent flows to the WSWPCF, and about 3,500
acre-feet per year is treated to secondary level and
used for agricultural irrigation near the WSWPCF for
growing animal feed and fodder crops that are not for
human consumption. The City uses this industrial and/
or domestic recycled water to irrigate about 790 acres of
agricultural land owned by the City. In recent years, the
City has also supplied recycled water from the domestic
treatment process to produce steam for a 49 -megawatt
natural gas -powered generator, and to replenish
mosquito fish -rearing ponds. Additionally, the City has
provided a "will -serve" letter to the Northern California
Power Agency (NCPA) for a potential power plant that
will utilize an average of 1.43 mgd (1,602 acre-feet per
year) of treated wastewater. As of 2009, this project is
still in planning stages. Although this recycled water is
put to beneficial use, there is currently no cost effective
way to return recycled water to the City to satisfy nonpotable
urban water demands.
Page 27 of 38
In 2008, the City prepared the City of Lodi Recycled
Water Master Plan.? The plan concluded that the quality
of Lodi's recycled water is suitable for most recycled
water uses and that quality will improve when the
WID surface water supply is added to the potable water
supply. The plan noted several potential recycled water
uses, totaling about 12,696 acre-feet per year. These uses
include:
Urban uses: irrigation of parks, • constructed lakes,
cemeteries, schools, and median strips. For these
uses the total potential use is about 1,731 acre-feet per
year, not including all of the new growth areas identified
in this plan.
• Commercial and industrial uses of up to 1,831 acrefeet
per year.
• Agricultural uses of up to 9,134 acre-feet per year.
The Recycled Water Master Plan found that it would
not be cost effective to deliver recycled water to all of
the potential demand locations. However, the plan
did identify preferred potential uses of recycled water,
including providing about 3,720 acre-feet per year of
recycled water for agricultural uses, and establishing a
non -potable water system serving urban customers. The
latter alterative requires further evaluation.
The General Plan includes areas totaling about 1,600
acres that could be irrigated with nonpotable water.
These areas include the commercial, industrial, business
park/office, industrial reserve, mixed use centers, public/
quasi public, parks, open space, and about 20% of the
urban reserve area. This does not include landscaping
in residential areas. Parks and basins represent about
136 acres of this land and the parks could be irrigated
with about 3.4 acre-feet of water per year. Assuming
that about 10% of the remaining nonresidential area is
landscaping that could be irrigated with non -potable
water, the total potential demand from the new General
Plan growth areas would be about 1,000 acre feet per
year. However, use of recycled water in the city would
decrease the available recycled water for use for agriculture
around the WSWPCF and, therefore, may not
be cost effective. Ongoing consideration of the topic is
warranted.
Page 28 of 38
In addition to recycled water from the WSWPCF, gray
water and rainwater may also be used on-site for specific
purposes. Gray water is untreated household wastewater
that comes from bathtubs, showers, bathroom wash
basins, and clothes washing machines, and which may
be reused to flush toilets and for subsurface irrigation
of non -edible landscape plants. Harvested rainwater
may also be applied directly to non -potable water uses
such as toilet flushing, laundry, and irrigation. Use of
gray water or rainwater for non -potable uses may require
installation of dual plumbing systems.
RMC Water and Environment, 2008.
Chapter 3: Growth Management and infrastructure 13-15
City of Lodi2010 Urban Water Management Plan August 2011
4.6.3 Recycled Water Existing and Potential Uses
The City currently uses 1,465 AFY of its recycled water supply for agricultural
irrigation around the plant. This water is mixed with industrial process wastewater
(primarily from a large cannery) to irrigate approximately 790 acres of City -owned
land. Current recycled water uses also include 50 AFY to replenish mosquito -fish
rearing ponds, and 127 AFY to provide steam for a 49 -megawatt natural
gaspowered generator. The City has agreed to provide up to 1,800 AFY (with an
anticipated demand of 1,200 AFY) to NCPA for use at its future power plant
currently under construction (anticipated completion in 2012). The power plant is
currently under construction and is expected to be completed in 2012.
Page 23
Encouraging Recycled Water Use
The City does not have any current plans to utilize financial incentives for recycled
water use. As recycled water projects are identified, financial incentives may be
one action considered to promote the implementation of the recycled water project,
if the project is feasible and cost-effective.
The City completed a Recycled Water Master Plan (RWMP) which evaluated the
City's alternatives for encouraging the use of recycled water. Through the
evaluation, it was determined that there were no economically feasible projects at
this time without additional outside funding. The City will continue to evaluate the
Page 29 of 38
potential for grant funding of recycled water projects, and/or seek opportunities to
implement portions of larger projects as they becomes economically feasible.
Recycled Water Use Optimization Plan.
The City's RWMP describes the City's approach to optimizing the use of recycled
water in the service area. The Recycled Water Master Plan has been included as
Appendix I. The RWMP evaluated existing and potential customers for recycled
water as well as available supplies. Additional uses could be constrained without
the availability of seasonal storage. All alternatives developed as part of the
RWMP therefore included a seasonal storage component.
Based on the economic and technical analysis, the RWMP identified two projects
that could benefit the City's efforts to develop sustainable long term water supplies
for the community. The two projects include an agricultural reuse project using
recycled water supply from the WSWPCF, and a non -potable water system serving
urban customers. The two projects could potentially be moved forward in parallel.
The agricultural reuse project was identified as the preferred recycled water
project, although it not cost effective at this time. It was determined to be the most
cost-effective of the options considered, however, and would provide water to
users who are currently using groundwater. The project would provide
approximately 3,700 AFY to agricultural customers and industrial customers
adjacent to WSWPCF. The project would include construction of seasonal storage
ponds, approximately 7 miles of new piping, and a pump station. The annualized
cost was estimated to be approximately $1,800 per acre-foot. The City will
continue to evaluate options for outside funding of recycled water projects, and
implement projects if they become economically feasible.
The City is currently evaluating the potential for implementing the urban non -
potable water system project. Such a system would utilize the City's existing WID
supplies to serve potential urban customers.
The non -potable water system could then be integrated with a recycled water
system when a larger recycled water project becomes feasible. The size and scope
of the non -potable water system, as well as a future recycled water project, will be
determined through separate studies.
Page 24 and 25 of 2010 Urban Water Management Plan City of Lodi
City of Lodi 2015 Urban Water Management Plan Final
Prepared by: RMC June 2016
6.5.3 Recycled Water System
The City owns 1,040 acres of land, including and surrounding the WWTP, as
shown in Figure 6-4. On this land, a portion of the wastewater is currently used as
Page 30 of 38
recycled water for agricultural land irrigation, fish pond replenishment, and two
power -generating facilities. Though recycled water is provided to different
agencies that rent city -owned land, the City is the only agency involved in the
collection, treatment, and distribution of the recycled water.
Excluding the power facilities, WWTP, and fish -rearing ponds, there are 790 acres
of City -owned land surrounding the WWTP that are irrigated with a mixture of
disinfected tertiary treated wastewater, undisinfected secondary treatment
wastewater, and the City's industrial process wastewater. The City has
been irrigating at least some of this land with recycled water since the 1940s. The
land is used to grow crops for dairy cattle, such as corn, wheat, and alfalfa. As
these crops are for fodder and not human consumption, the use undisinfected
secondary treatment recycled water for irrigation is allowed. In 2015, the City used
a total of 3,421 AF for agricultural irrigation, composed of 2,062 AF of
undisinfected wastewater effluent, 856 AF of disinfected wastewater effluent, and
503 AF of industrial influent wastewater. The portion of the recycled water from
treated municipal wastewater is 2,918 AF. Recycled water is provided throughout
the year, though the total supply was significantly reduced during winter months
(November through February) to an average volume of 48.5 AF in 2015. The
average recycled water flow during the remaining months (March through
October) was 403 AF in 2015.
Page 35 2015 Urban Water Management Plan City of Lodi
The power plant, the Lodi Energy Center (LEC), is operated by the Northern
California Power Agency (NCPA) and is adjacent to the WWTP to the west on
City -owned land. It was completed in August 2012 and utilizes up to 1,800 AFY of
recycled water in its cooling towers per the agreement letter included in Appendix
N. The NCPA also operates the STIG (steam injected gas turbine) plant to the west
of the LEC that has been in operation since 1996. Recycled water is used to
provide steam for the 49 -megawatt natural gas -powered generator at the plant. In
2015, a total of 1,345 AF of UV disinfected, tertiary treated effluent was delivered
for use at both the LEC and STIG plant. With approximately 130 AF provided to
the STIG plant, the bulk of the recycled water (1,215 AF) is used at the LEC.
The San Joaquin County Mosquito and Vector Control District has mosquito -fish
rearing ponds to the south of the WWTP at the White Slough Mosquitofish
Rearing Facility, which was constructed in 1995. Current recycled water use
includes 135 AF of tertiary treated, UV disinfected wastewater effluent to
replenish the mosquito -fish rearing ponds.
The City's Recycled Water Master Plan (RWMP), updated in November 2008 and
included in Appendix 0, describes the City's approach to optimizing the use of
recycled water in the service area. The RWMP evaluated existing and potential
Page 31 of 38
customers for recycled water, as well as available supplies. Additional uses could
be constrained without the availability of additional seasonal storage. All
alternatives developed as part of the RWMP therefore include a seasonal storage
component. The City is considering future opportunities to expand its recycled
water use.
6.5.4 Recycled Water Beneficial Uses
As described in the section above, recycled water is currently used to irrigate 790
acres of City -owned land, for cooling towers at the LEC, to provide steam to the
STIG plant, and to replenish mosquito -fish rearing ponds. All current recycled
water flows are in accordance with Title 22 of the California Code of Regulations.
As described above, since the irrigated crops are not for human consumption and
are instead for dairy cattle fodder, it is appropriate to use some undisinfected
secondary treatment recycled water (mixed with the industrial wastewater) for land
irrigation. Disinfected tertiary treated wastewater is utilized for the other recycled
water users described above. The recycled water provided to the NCPA (for the
LEC and STIG plant) has an industrial beneficial use, and the water used to
replenish the mosquito -fish rearing ponds has a recreational impoundment
beneficial use.
In the future, the City currently anticipates that recycled water use will remain the
same as in 2015, though these estimates are likely conservative. Table 6-5
summarizes all the recycled water currently used within the UWMP area (i.e., the
City boundaries) and anticipated in the future.
Page 36
Table 6-6 compares the amount of recycled water projected to be used in 2015
according to the 2010 UWMP with the actual amount of recycled water used in
2015. It is difficult to directly compare the 2010 UWMP to this UWMP due to the
aforementioned switch from reporting by calendar year to fiscal year. In the 2010
UWMP, it was estimated that the amount of recycled water used in the calendar
year 2015 would be 2,842 AF. In FY 2015, 4,398 AF of recycled water was used.
The projection for recycled water use by NCPA (industrial use) was almost exactly
what occurred in 2015, but the projected recycled water use by both agricultural
irrigation and fish pond replenishment were lower than the actual recycled water
delivered, potentially due to more land being irrigated. The increase in recycled
water use over what was anticipated is considered to be positive for the City in
achieving its sustainability goals.
Page 32 of 38
6.5.5 Actions to Encourage and Optimize Future Recycled Water Use
The City completed a RWMP in November 2008 which evaluated the City's
alternatives for encouraging the use of recycled water. Through the evaluation, it
was determined that there were no economically feasible projects at this time
without additional outside funding. The City will continue to evaluate the potential
for grant funding of recycled water projects, and/or seek opportunities to
implement portions of larger projects as they becomes economically feasible. The
City does not have any current plans to utilize financial incentives for recycled
water use. Therefore, DWR Table 6-6 is not applicable and has not been included.
As recycled water projects are identified, financial incentives may be one action
considered to promote the implementation of the recycled water project, if the
project is feasible and cost-effective.
Page 38.
2015 Urban Water Management Plan City of Lodi
Locations that have a Recycled Water Enterprise:
El Dorado Irrigation District; Long Beach Water Department; Eastern Municipal
Water District, San Jose; City of Sunnyvale; City of Redwood City; City of Santa
Clara; City of Mountain View; City of Milpitas; East Bay Municipal Utility District;
City of Santa Rosa; South Bay Water Recycling, San Diego County Water Authority
To name a few.
AGENDA ITEM J-1
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDATITLE: Adopt Resolutions of the City Council and the Lodi Public Financing
Authority to Approve the Issuance of Water Revenue Bonds and Related Documents in
an Amount Not to Exceed $45 Million in Order to Construct the Surface Water
Treatment Facility
MEETING DATE: October 6,2010
PREPARED BY: Interim City Manager
RECOMMENDED ACTION: Adopt Resolutions of the City Council and the Lodi Public
Financing Authority to approve the issuance of water revenue bonds and related
documents in an amount not to exceed $45 million in order to construct the Surface
Water Treatment Facility.
Page 33 of 38
BACKGROUND INFORMATION: The 2010 Water Revenue Bonds are being sold to
finance construction of the Surface Water Treatment Facility. The Treatment
Facility is designed to pump water from the Mokelumne River, treat and deliver it to the
City's existing water distribution system. The Treatment Facility is expected to provide 8
mgd of firm capacity (1 0 mgd peak capacity) of treated water that would meet or
exceed State and federal drinking water standards. Major components of the Treatment
Facility include a raw water pump station and pipeline; operations building; chemical
building; treatment works (sedimentation basin, strainers, feed pumps, and
membranes); control systems and related facilities and equipment.
Four major buildings will be constructed to house the treatment plant facilities. These
include the operations building, chemical storage building, raw water pump station, and
high service pump station. The initial plant construction is designed to treat 8 mgd. All
facilities are designed to accommodate for a
future expansion of the treatment plant to 20 mgd.
A 3 -million -gallon storage tank and booster pumping facility will discharge the treated
water on demand into the large diameter transmission mains constructed along with the
treatment plant.
The estimates for the capital cost of the Treatment Facility will be approximately $36.5
million, consisting of approximately $27.5 million on site acquisition, construction costs,
fees and testing costs, approximately $4.4 million in equipment, $900,000 in engineering
costs, and a contingency of approximately $3.7 million.
SUMMARY OF DOCUMENTS: In order to complete this financing, the City and the Lodi
Public Financing Authority ("PFA) are required to approve and execute several key legal
documents. The key documents are summarized below.
(Mike Lusk Note: The following are excerpts from this document).
Section Official Statement—Page 1 and 2
OFFICIAL STATEMENT
Lodi Public Financing Authority
2010 Water Revenue Bonds,
Series A
Lodi Public Financing Authority
2010 Water Revenue Bonds, Series B
(Federally Taxable " Build America Bonds -
Direct Payment)
INTRODUCTION
This introduction contains only a brief summary of certain of the terms of the Series 2010
Bonds being offered and a brief description of the Official Statement (which includes the cover
page and Appendices hereto). All statements contained in this introduction are qualified in their
entirety by reference to the entire Official Statement. References to, and summaries of,
provisions of the Constitution and laws of the State of California and any documents referred to
herein do not purport to be complete and such references are qualified in their entirety by
reference to the complete provisions. Capitalized terms used in this Official Statement and not
defined elsewhere herein have the meanings given such terms under the Indenture or the 2010
Page 34 of 38
Installment Sale Agreement. See APPENDIX F - "SUMMARY OF PRINCIPAL LEGAL
DOCUMENTS - Definitions" hereto.
Purpose of this Official Statement
The purpose of this Official Statement is to set forth certain information concerning the issuance
and sale of the Lodi Public Financing Authority's (the "Authority") $ * 2010
Water Revenue Bonds, Series A (the "Series 2010A Bonds") and $ * 2010 Water
Revenue Bonds, Series B (Federally Taxable - Build America Bonds - Direct Payment) (the
"Series 2010B Bonds" and, together with the Series 2010A Bonds, the "Series 2010 Bonds")
pursuant to an Indenture of Trust, dated as of October 1,2010, between the Authority and The
Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee") (the "Indenture"),
for the purpose of providing funds to (i) pay the cost of a new water treatment facility (the
"Treatment Facility") to treat water to be provided within the service area of the City (the "Water
System"); (ii) fund a deposit in the Reserve Account in an amount equal to the Reserve
Requirement; (iii) pay costs of issuance. The Series 2010 Bonds will be issued in full conformity
with the Constitution and the laws of the State of California (the "State"), including the Marks -
Roos Local Bond Pooling Act of 1985, being Article 4 of Chapter 5 of Division 7 of Title 1 of
the Government Code of the State (the "Act"). See "THE TREATMENT FACILITY," "PLAN
OF FINANCING" and "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES
2010 BONDS" herein.
The City and the Water System
The City of Lodi (the "City") is located in the County of San Joaquin between Stockton and
Sacramento, and adjacent to U.S. Highway 99, approximately 90 miles east of San Francisco.
The City owns and operates the Water System, which includes over 237 miles of pipe, 27
groundwater wells, two storage tanks and various pumping stations and related facilities and
equipment. The
* Preliminary; subject to change.
DOCSOC/1418056 V 16/022245-0221
1
service area of the Water System covers approximately 11.5 square miles and serves about
23,000 accounts and a population of approximately 63,000. See "THE WATER SYSTEM -
General" herein.
The Authority
The Authority was created by a Joint Exercise of Powers Agreement between the City and
the Industrial Development Authority of the City of Lodi pursuant to the provisions of the Act.
The Authority was created for the purpose of facilitating the financing of the acquisition andor
construction of real and personal property in and for the City. See "THE AUTHORITY" herein.
Security and Sources of Payment for the Series 2010 Bonds
The Series 2010 Bonds are special, limited obligations of the Authority payable solely from
Authority Revenues and all amounts (including proceeds of the sale of the Series 2010 Bonds)
held in any fund or account established under this Indenture (subject only to the provisions of the
Indenture permitting the application thereof for the purposes and on the terms and conditions set
forth therein). "Authority Revenues" consist primarily of installment payments (the "20 10
Installment Payments") received by the Trustee from the City pursuant to an Installment Sale
Agreement, dated as of October 1, 2010 (the "2010 Installment Sale Agreement") between the
City and the Authority.
Page 35 of 38
The 2010 Installment Sale Agreement is a special obligation of the City, payable solely from
the Net Revenues of the Water System. 'Wet Revenues" means, for any period, an amount equal
to all of the Gross Revenues received during such period minus the amount required to pay all
Operation and Maintenance Costs becoming payable during such period. "Gross Revenues"
generally means all gross charges received for, and all other gross income and receipts derived
by the City from, the ownership and operation of the Water System or otherwise arising from the
Water System. The Authority is not obligated to pay interest on or principal of or redemption
premiums, if any, on the Series 2010 Bonds except from Authority Revenues.
THE SERIES 2010 BONDS ARE NOT A DEBT OF THE CITY, THE COUNTY OF SAN
JOAQUIN, THE STATE OF CALIFORNIA, OR ANY OF ITS POLITICAL SUBDIVISIONS,
AND NEITHER THE CITY, THE COUNTY, THE STATE, NOR ANY OF ITS POLITICAL
SUBDIVISIONS, IS LIABLE HEREON NOR IN ANY EVENT SHALL THE SERIES 2010
BONDS BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OF THE AUTHORITY
OTHER THAN THE AUTHORITY REVENUES.
(Mike Lusk Note: end of excerpt from page 2).
Rate Covenant
The City covenants in the Installment Purchase Agreement to fix, prescribe, revise and
collect rates, fees and charges for the services and facilities furnished by the Water System
during each Bond Year, which are at least sufficient, after making allowances for contingencies
and error in the estimates, to yield Gross Revenues sufficient to pay the following amounts in the
following order of priority: (i) all Operation and Maintenance Costs estimated by the City to
become due and payable in such Bond Year; (ii) all 2010 Installment Payments and all payments
of principal of and interest on any Parity Debt as they become due and payable during such Bond
Year, without preference or priority, except to the extent any of such payments are payable fiom
bond proceeds or fiom any other source of legally available funds of the City which have been
deposited with the Trustee for such purpose prior to the commencement of the related Bond
Year; (iii) all amounts, if any, required to restore the balance in the Reserve Account to the full
amount of the Reserve Requirement, and to restore the balance in the reserve account established
for any Parity Debt to their required balances; and (iv) all Additional Payments and other
payments required to meet any other obligations of the City which are charges, liens,
encumbrances upon, or which are otherwise payable fiom, the Gross Revenues or the Net
Revenues during such Bond Year.
In addition, the City covenants to prescribe, revise and collect rates, fees and charges for the
services and facilities furnished by the Water System during each Bond Year which are sufficient
to yield both of the following:
(a) Net Revenues equal to at least 125% of the amount described in the preceding clause
(ii) that is due in such Fiscal Year. For purposes of this paragraph, the amount of Net Revenues
for a Fiscal Year will be computed on the basis that any transfers into the Water System Fund in
that Fiscal Year fiom the Rate Stabilization Fund are included in the calculation of Net
Revenues, as provided in the Installment Sale Agreement, but only to the extent that the moneys
transferred fiom the Rate Stabilization Fund would not otherwise constitute Gross Revenues for
the Fiscal Year.
Page 36 of 38
(b) Net Revenues equal to at least 100% of the amounts described in the preceding clauses (ii)
and (iii) that are due in such Fiscal Year. For purposes of this paragraph, the amount of
Net Revenues for a Fiscal Year will be computed on the basis that (A) any connection charges
(including the City's impact mitigation fees) deposited into the Water System Fund in that Fiscal
Year shall not be included, (€3) any transfers into the Water System Fund in that Fiscal Year
fiom the Rate Stabilization Fund shall not be included in the calculation of Net Revenues, and
(C) any deposits into the Rate Stabilization Fund in that Fiscal Year shall be included in the
amount of Net Revenues, but only to the extent such deposits are made from Gross Revenues
received by the City during that Fiscal Year.
See "SECURITY AND SOURCES OF PAYMENT FOR THE Series 2010 Bonds -Rate
Covenant".
(Mike Lusk Note: end of excerpt from page 3).
SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2010 BONDS
Pledge Under the Indenture
Subject only to the provisions of the Indenture permitting the application thereof for the
purposes and on the terms and conditions set forth therein, all of the Authority Revenues and all
amounts (including proceeds of the sale of the Series 2010 Bonds) held in any fund or account
established under the Indenture are pledged to secure the payment of the principal of and interest
and premium (if any) on the Series 2010 Bonds in accordance with their terms and the provisions
of the Indenture. "Authority Revenues" means: (a) all of the 2010 Installment Payments, and (b)
all interest, profits or other income derived from the investment of amounts in any fund or
account established under the Indenture.
As and to the extent set forth in the Indenture, all of the Revenues are exclusively and
irrevocably pledged in accordance with the terms of the Indenture to the payment of the principal
of and interest and premium (if any) on the Series 20 10 Bonds.
Pursuant to the Indenture, the Authority irrevocably transfers, assigns and sets over to the
Trustee, without recourse to the Authority, all of its rights in the 2010 Installment Sale
Agreement (excepting only certain reserved rights), including but not limited to all of the
Authority's rights to receive and collect all of the 2010 Installment Payments. The Trustee is
entitled to collect and receive all of the 2010 Installment Payments, and any Installment
Payments collected or received by the Authority shall be deemed to be held, and to have been
collected or received, by the Authority as the agent of the Trustee and shall forthwith be paid by
the Authority to the Trustee.
THE SERIES 2010 BONDS ARE NOT A DEBT OF THE CITY, THE COUNTY OF SAN
JOAQUIN, THE STATE OF CALIFORNIA, OR ANY OF ITS POLITICAL SUBDIVISIONS,
AND NEITHER THE CITY, THE COUNTY, THE STATE, NOR ANY OF ITS POLITICAL
SUBDIVISIONS, IS LIABLE HEREON NOR IN ANY EVENT SHALL THE SERIES 2010
BONDS BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OF THE AUTHORITY
OTHER THAN THE AUTHORITY REVENUES.
(Mike Lusk Note: end of excerpt from page 11).
Page 37 of 38
Mike Lusk disclaimer: All the information contained in this Claim is meant
to support the argument of the Claim and not in any way meant to miss -lead
the intention of this Claim.
The representation of sources and excerpts were taken from official
documents in part or in whole but may not contain all of the information of
the source document. Persons reviewing this Claim are urged to review all
source documents in their entirety if further understanding is required.
This Claim is directed at the City of Lodi and not to anyone individual or
individuals within the City Government.
Respectfully
Mike Lusk
2518 Colony Dr.
Lodi, Calif.
Page 38 of 38
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: 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
PUBLISH DATE: SATURDAY, FEBRUARY 4, 2017
LEGAL AD
TEAR SHEETS WANTED: One (1} please
SEND AFFIDAVIT AND BILL TO:
LNS ACCT. #0510052
JENNIFER M. FERRAIOLO, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, FEBRUARY 2, 2017
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
PAMELA M. FARRIS
DEPUTY CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Emailed to the Sentinel at dianer@lodinews.com at 10 l ime) on A (date) (pages)
LNS Phoned to confirm receipt of all pages at (time) ES PMF (initials)
forms\advins.doc
DECLARATION OF POSTING
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
On Thursday, February 2, 2017, in the City of Lodi, San Joaquin County, California, a
Notice of 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 (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 February 2, 2017, at Lodi, California.
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
PAMELA M. FARRIS ELIZABETH BURGOS
DEPUTY CITY CLERK ADMINISTRATIVE CLERK
N:\Administration\CLERK\Public Hearings \AFFADAVITS\DECPOSTPW2.doc
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: February 15, 2017
Time: 7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
A
L
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, February 15, 2017, 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 (alternatives are
identified on the attached Exhibits A and B).
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:
Thir
nifer M l erraiolo
ty Clerk
Dated: February 1, 2017
Approved as to form:
Janice D. Magdich
City Attorney
AVISO: Para obtener ayuda interpretativa con esta noticia, por favor Ilame a la oficina de la
Secretaria Municipal, a las (209) 333-6702.
J:CLERK\PUBLICHEARING\NOTICES\PH NOTICE publication WaterRates.doc 212/17
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Current Proposed
(Jan. 2016) (Jan. 2017)
Rate Increase --> 3.0%
FLAT RATES
Single Family Residential
1 Bedroom $ 31.88 $ 32.84
2 Bedroom $ 38.29 $ 39.44
3 Bedroom $ 45.89 $ 47.27
4 Bedroom $ 55.14 $ 56.79
5 Bedroom $ 66.13 $ 68.11
6 Bedroom $ 79.37 $ 81.75
7 Bedroom $ 95.17 $ 98.03
Multi -Family (1)
1 Bedroom $ 27.37 $ 28.19
2 Bedroom $ 32.83 $ 33.81
3 Bedroom $ 39.40 $ 40.58
Mobile Homes
Any Size $ 27.37 $ 28.19
Non -Residential
Existing unmetered Varies +3.0%
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan. 2019)
3.0% 3.0%
33.83 $ 34.84
40.62 $ 41.84
48.69 $ 50.15
58.49 $ 60.24
70.15 $ 72.25
84.20 $ 86.73
100.97 $ 104.00
29.04 $ 29.91
34.82 $ 35.86
41.80 $ 43.05
$ 29.04 $ 29.91
+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 Proposed
(Jan. 2016) (Jan. 2017)
Rate Increase --> 3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter $ 21.23 $ 21.87
1" meter $ 33.34 $ 34.34
1 1/2" meter $ 63.35 $ 65.25
2" meter $ 99.53 $ 102.52
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.23 $ 21.87
1" meter $ 33.34 $ 34.34
1 1/2" meter $ 63.35 $ 65.25
2" meter $ 99.53 $ 102.52
3" meter $ 183.98 $ 189.50
4" meter $ 304.59 $ 313.73
6" meter $ 605.85 $ 624.03
8" meter $ 967.52 $ 996.55
10" meter $ 1,389.57 $ 1,431.26
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.94 $ 0.97
Tier 2 (11-50 CCF; $ 1.25 $ 1.29
Tier 3 (>50 CCF) $ 1.55 $ 1.60
Multi -Family and Non -Residential (1)
All water usage $ 1.12 $ 1.15
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan. 2019)
3.0% 3.0%
$ 22.53 $ 23.21
$ 35.37 $ 36.43
$ 67.21 $ 69.23
$ 105.60 $ 108.77
$ 22.53 $ 23.21
$ 35.37 $ 36.43
$ 67.21 $ 69.23
$ 105.60 $ 108.77
$ 195.19 $ 201.05
$ 323.14 $ 332.83
$ 642.75 $ 662.03
$ 1,026.45 $ 1, 057.24
$ 1,474.20 $ 1,518.43
$ 1.00 $ 1.03
$ 1.33 $ 1.37
$ 1.65 $ 1.70
$ 1.18 $ 1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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 B
City of Lodi
Current and Proposed Flat Water Rates
Current Proposed
(Jan. 2016) (March 2017)
Rate Increase --> 2.0%
FLAT RATES
Single Family Residential
1 Bedroom $ 31.88 $ 32.52
2 Bedroom $ 38.29 $ 39.06
3 Bedroom $ 45.89 $ 46.81
4 Bedroom $ 55.14 $ 56.24
5 Bedroom $ 66.13 $ 67.45
6 Bedroom $ 79.37 $ 80.96
7 Bedroom $ 95.17 $ 97.07
Multi -Family (1)
1 Bedroom $ 27.37 $ 27.92
2 Bedroom $ 32.83 $ 33.49
3 Bedroom $ 39.40 $ 40.19
Mobile Homes
Any Size $ 27.37 $ 27.92
Non -Residential
Existing unmetered Varies +3.0%
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan. 2019)
3.0% 3.0%
33.50 $ 34.51
40.23 $ 41.44
48.21 $ 49.66
57.93 $ 59.67
69.47 $ 71.55
83.39 $ 85.89
99.98 $ 102.98
28.76 $ 29.62
34.49 $ 35.52
41.40 $ 42.64
$ 28.76 $ 29.62
+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 Proposed
(Jan. 2016) (March 2017)
Rate Increase --> 2.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
1" meter
1 1/2" meter
2" meter
$ 21.23
$ 33.34
$ 63.35
$ 99.53
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.23
1" meter $ 33.34
1 1/2" meter $ 63.35
2" meter $ 99.53
3" meter $ 183.98
4" meter $ 304.59
6" meter $ 605.85
8" meter $ 967.52
10" meter $1,389.57
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.94
Tier 2 (11-50 CCF $ 1.25
Tier 3 (>50 CCF) $ 1.55
Multi -Family and Non -Residential (1)
All water usage $ 1.12
$ 21.65
$ 34.01
$ 64.62
$ 101.52
$ 21.65
$ 34.01
$ 64.62
$ 101.52
$ 187.66
$ 310.68
$ 617.97
$ 986.87
$ 1,417.36
$ 0.96
$ 1.28
$ 1.58
$ 1.14
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan. 2019)
3.0% 3.0%
$ 22.30
$ 35.03
$ 66.56
$ 104.57
$ 22.30
$ 35.03
$ 66.56
$ 104.57
$ 193.29
$ 320.00
$ 636.51
$ 1,016.48
$ 1,459.88
$ 22.97
$ 36.08
$ 68.56
$ 107.71
22.97
36.08
68.56
107.71
199.09
329.60
655.61
$1,046.97
$ 1,503.68
$ 0.99 $ 1.02
$ 1.32 $ 1.36
$ 1.63 $ 1.68
$ 1.17 $ 1.21
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(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