HomeMy WebLinkAboutAgenda Report - November 1, 2017 G-02 PHTM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE:
MEETING DATE:
PREPARED BY:
AGENDA ITEM
G-2
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
November 1, 2017
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 several years. On May 7, 2014, City Council approved a
five-year program of rate adjustments for water, wastewater, and
solid waste services in accordance with the Proposition 218 rate setting process. 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 3.98 percent. In response to the anticipated downward trend
in Water Fund balance, staff is recommending a water rate increase of three percent followed by three -
percent increases annually through completion of the Water Meter Program (WMP). Cash flow
requirements to fund WMP construction costs, 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 since Lodi buys only a small fraction of its water supply. The bulk of the fixed
costs is related to the debt service associated with constructing the water treatment plant and fixed costs
to maintain the well production and delivery system. As such, conservation does not reduce fixed
operation costs. While a three -percent increase (if approved) will allow for the planned construction of
WMP Phase 8 in Fiscal Year 2017/18, it is expected the utility will dip into reserves by $759,000 this fiscal
year and by $1.65 million in Fiscal Year 2018/19. This short-term financial condition is tolerable because
of the overall good condition of the water system, and a minimum of $405,000 in Fiscal Year 2018/19 is
available to account for unforeseen conditions that may be experienced by the utility. All debt service
coverage requirements are being met during this period.
A summary of current and proposed rates for flat rate and usage -based rate customers is provided in
Attachment B. The attachment includes the rate sunset scheduled in January of 2021 that will role
water rates back to January 1, 2017 levels. This action was directed by Council at the February 15,
2017 meeting. For a resident still on the flat rate, the monthly charge for a three-bedroom home will
increase from $47.27 to $48.69, or $1.42 per month. A metered resident using an average of 1,800
cubic feet of water per month will see an increase from $41.89 to $43.17, or $1.28 per month.
As reflected in the City's Financial Plan (Attachment C), fund balances rebound substantially starting
in Fiscal Year 2020/21 due to WMP expenditures no longer being required. This year corresponds
APPROVED:
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K:\WP\UTILITY RATES \W W1M2018 W_ WW Rate Increase\CCPH_WaterRates2018.doc
uer, City Manager
10/23/2017
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
November 1, 2017
Page 2
with the rate sunset, as reflected in Resolution No. 2017-23 (Attachment D), and completion of the
City's multi-year WMP.
FISCAL IMPACT:
The Water Utility is requiring increased revenue to fund the remaining
phases of the WMP and to minimize declining fund balances until the
WMP is complete.
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\2018 WWW Rate Increase\CCPR WaterRates2018.doc 10/23/2017
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)
2018
3.98 (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
Attachment B
City of Lodi
Current and Proposed Flat Water Rates
Future Rate Ceiling (2)
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
Current
(Jan. 2017)
Proposed
(Jan. 2018)
Potential
(Jan. 2019)
Potential*
(Jan. 2020)
Sunset Rates
(Jan. 2021) (3)
Rate Increase -->
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 32.84
$ 33.83
$ 34.84
$ 35.89
$ 32.84
2 Bedroom
$ 39.44
$ 40.62
$ 41.84
$ 43.10
$ 39.44
3 Bedroom
$ 47.27
$ 48.69
$ 50.15
$ 51.65
$ 47.27
4 Bedroom
$ 56.79
$ 58.49
$ 60.24
$ 62.05
$ 56.79
5 Bedroom
$ 68.11
$ 70.15
$ 72.25
$ 74.42
$ 68.11
6 Bedroom
$ 81.75
$ 84.20
$ 86.73
$ 89.33
$ 81.75
7 Bedroom
$ 98.03
$ 100.97
$ 104.00
$ 107.12
$ 98.03
Multi -Family (1)
1 Bedroom
$ 28.19
$ 29.04
$ 29.91
$ 30.81
$ 28.19
2 Bedroom
$ 33.81
$ 34.82
$ 35.86
$ 36.94
$ 33.81
3 Bedroom
$ 40.58
$ 41.80
$ 43.05
$ 44.34
$ 40.58
Mobile Homes
Any Size
$ 28.19
$ 29.04
$ 29.91
$ 30.81
$ 28.19
Non -Residential
Existing unmetered
Varies
+3.0%
+3.0%
+3.0%
Varies
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
City of Lodi
Current and Proposed Usage -Based Water Rates
Future Rate Ceiling (2)
Current
(Jan. 2017)
Proposed
(Jan. 2018)
Potential
(Jan. 2019)
Potential*
(Jan. 2020)
Sunset Rates
(Jan. 2021) (3)
Rate Increase -->
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 21.87
$ 22.53
$ 23.21
$ 23.91
$ 21.87
1" meter
$ 34.34
$ 35.37
$ 36.43
$ 37.52
$ 34.34
1 1/2" meter
$ 65.25
$ 67.21
$ 69.23
$ 71.31
$ 65.25
2" meter
$ 102.52
$ 105.60
$ 108.77
$ 112.03
$ 102.52
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 21.87
$ 22.53
$ 23.21
$ 23.91
$ 21.87
1" meter
$ 34.34
$ 35.37
$ 36.43
$ 37.52
$ 34.34
1 1/2" meter
$ 65.25
$ 67.21
$ 69.23
$ 71.31
$ 65.25
2" meter
$ 102.52
$ 105.60
$ 108.77
$ 112.03
$ 102.52
3" meter
$ 189.50
$ 195.19
$ 201.05
$ 207.08
$ 189.50
4" meter
$ 313.73
$ 323.14
$ 332.83
$ 342.81
$ 313.73
6" meter
$ 624.03
$ 642.75
$ 662.03
$ 681.89
$ 624.03
8" meter
$ 996.55
$ 1,026.45
$ 1,057.24
$ 1,088.96
$ 996.55
10" meter
$ 1,431.26
$ 1,474.20
$ 1,518.43
$ 1,563.98
$ 1,431.26
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.97
$ 1.00
$ 1.03
$ 1.06
$ 0.97
Tier 2 (11-50 CCF)
$ 1.29
$ 1.33
$ 1.37
$ 1.41
$ 1.29
Tier 3 (>50 CCF)
$ 1.60
$ 1.65
$ 1.70
$ 1.75
$ 1.60
Multi -Family and Non -Residential (1)
All water usage $ 1.15
$ 1.18
$ 1.22
$ 1.26
$ 1.15
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
City of Lodi -- Water Utility
Financial Plan Summary
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
3.0%
Jan. 2017
WATER OPERATING FUND (560)
3.0%
Jan. 2018
3.0%
Jan. 2019
3.0%
Jan. 2020
0.0%
Jan. 2021
Beginning Balance 5,706,099 3,604,106 1,239,545 405,434 2,143,723
Revenues
Water Sales 12,473,679 13,493,000 14,246,000 14,869,000 14,993,000
Interest Earnings 48,276 59,540 20,000 31,000 98,000
Other Revenues 93,133 76,000 78,000 80,000 82,000
Transfer from Fund 562 for Debt Service - 109,000 109,000 155,000 155,000
Total Revenues 12,615,087 13,737,540 14,453,000 15,135,000 15,328,000
Expenditures
Transfer Out to General Fund (Cost of Services) 813,000 814,490 814,000 814,000 814,000
Transfer Out to Capital Fund 181 for projects 5,235,000 5,800,000 4,750,000 2,620,000 700,000
Personnel Services 2,763,000 2,851,000 2,949,000 3,048,000 3,120,000
Utilities 453,000 563,000 587,000 611,000 630,000
Supplies, Mat'Is., Services & Other 3,100,000 3,768,000 3,880,000 3,996,000 4,093,000
Debt Service
Net 2010 Rev. Bond Payments 2,353,080 2,305,611 2,307,111 2,307,711 2,305,911
Total Expenditures 14,717,080 16,102,101 15,287,111 13,396,711 11,662,911
Ending Balance 3,604,106 1,239,545 405,434 2,143,723 5,808,812
Operating Reserve (25%) 1,782,000 1,999,000 2,058,000 2,117,000 2,164,000
Available Balance 1,822,106 (759,455) (1,652,566) 26,723 3,644,812
Debt Service Coverage (min. 1.25) 2.81 2.60 2.81 3.00 2.93
WATER CAPITAL OUTLAY (561)
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Total Revenues
Expenditures
Water Meter/Main Install. Project
Water Taps
Miscellaneous Water Mains
Public Improvement Reimbursements
GAC & Meter Repl (DBCP)
Meter Shop Design/Construction
Southwest Gateway Water Tank
Surface Water Treatment Plant PS Generator
MSC Security Improvements
Well 10C
Well 3 & 1OR Abandonment
Well 14 -Pump Rehab/Repl
Well 15 -Pump Rehab/Repl
Well 16 -Pump Rehab/Electrical Upgrade
Well 17 -Pump Rehab/Electrical Upgrade
Well 21
Well 23
Well 24 - Pump Rehab & Electrical Upgrade
Well 25
Vehicles/Equipment
Total Expenditures
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
(1,371,678)
5,235,000
24,745
576,378
275,942
93,851 113,551
5,800,000
2,700
248,000
4,750,000
(1,000)
249,000
55,551 49,551
2,620,000
(2,000)
251,000
700,000
73,000
6,112,065 6,050,700
4,193,000
31,000
18,634
93,893
123,895
63,114
123,000
5,311,000
75,000
50,000
300,000
50,000
25,000
200,000
20,000
4,998,000 2,869,000
3,739,000
75,000
50,000
300,000
200,000
300,000
171,000
180,000
41,000
75,000
50,000
300,000
2,000,000
212,000
196,000
42,000
773,000
75,000
50,000
212,000
196,000
212,000
42,000
4,646,537 6,031,000
5,056,000 2,875,000
787,000
Ending Balance 93,851 113,551 55,55
1 49,551 35,551
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
IMF WATER FACILITIES (562)
Beginning Balance 366,687 626,388 632,673 648,673 664,673
Revenues
Water Impact Mitigation Fees 206,847 109,000 109,000 155,000 155,000
Fire Station #4 Loan Payback 50,000
Interest Earnings 2,854 13,000 16,000 16,000 17,000
Total Revenues
Expenditures
IMF Update
Transfer to Operations Fund 180 for Debt Service
Total Expenditures
Ending Balance
Owed Fund 180 for Debt Service
259,701
122,000 125,000
171,000 172,000
6,715 - - -
109,000 109,000 155,000 155,000
115,715 109,000
155,000 155,000
626,388 632,673 648,673 664,673 681,673
6,696,000
7,491,000 8,267,000
8,977,000 9,666,000
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
Net Available for Capital Projects
5,854,000 3,516,000 2,640,000 4,388,000 8,056,000
1,782,000 1,999,000 2,058,000 2,117,000 2,164,000
1,530,000 1,530,000 1,530,000 1,530,000 1,530,000
2,542,000 (13,000) (948,000) 741,000 4,362,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation
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 3.0% 3.0% 3.0% 3.0% 0.0%
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 $ 1,263 $ 3,103 $ 3,103 $ 3,103 $ 3,103
Residential $ 1,263 $ 1,263 $ 1,263
Non -Residential 3,103 3,103 3,103
3.0% 3.0% 3.0% 3.0% 3.0%
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
ity Clerk
Tril eUtC/A-te
RRAIOLO
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 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) 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
City of Lodi
-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
(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
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
Recommendation
• Recommendation Action
— Three -percent increase in FY 2017/18 followed by
annual three -percent increases through FY 2019/20
• Proposition 218 — Three -percent maximum
• 2017 ENR Index Change — 3.98 percent
• Pre -approved increase by 2014 Council Action
— Implement WMP Phase 8 per schedule
— Places some financial stress on utility in FY 2017/18
and FY 2018/19
— Rate sunset -January 1, 2021 (Resolution No. 2017-23)
Water Operating Balances
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
(1,000,000)
FY 17/18 FY 18/19 FY 19/20 FY 20/21
(Ending Balance with 3%
Rate Increase
♦Ending Balance w/out Rate
Increase
--Operating Reserve (25%)
Water Meter Program Status
• Metered residential customers
• 87 -percent single-family residential as of January 1,
2018
• 14,400 meters
• Residential meters installed (incl. Phase 7)
• 92 -percent single-family residential
• 15,300 meters
• Flat -rate, single-family residential customers
• 2,060 as of January 1, 2018
7 -Year Summary
Year
Prop 218
Approved
ENR
Implemented
2012
2013
2.53
2.53
2.5 2.5
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
2018 3.0 3.98 3.0
*Consumer price index (use of ENR index became effective January 2012)
Recommended Water Flat Rates
Residential
January 2018
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
5 Bedroom
6 Bedroom
7 Bedroom
$32.84
$39.44
$47.27
$56.79
$68.11
$81.75
$98.03
$33.83
$40.62
$48.69
$58.49
$70.15
$84.20
$100.97
Recommended Metered Rates
Residential
Current
January 2018
Fixed Service Charge (3/4 inch)
$21.87
$22.53
Metered Charges:
Tier 1 (Up to 7,480 gals/month) $0.00130/gal $0.00134/gal
Tier 2 (7,480-37,400 gals/month) $0.00172/gal $0.00179/gal
Tier 3 (>34,000 gals/month) $0.00214/gal $0.00221 /gal
Three -Percent Increase Amounts
• Flat -Rate - 3 Bedroom Home
— Currently $47.27 / Month
— January 1St $48.69 / Month
— Difference $ 1.42 / Month
• Metered Rate — (1,800 CF / Month)
— Currently $41.89 / Month
— January 1St $43.17 / Month
— Difference $ 1.28 / 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
$35.47
$43.17
$44.64
$77.29
$90.28
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?
Rate Comparisons - Regional
Average Bill
City of Lodi
City of Sacramento
City of Modesto
City of Brentwood
City of Burlingame
City of Oakland
City of San Mateo
$43.17
$51.21
$55.20
$82.96
$101.10
$102.49
$149.80
Based on 1,800 cubic feet per month
17,000
16,000
15,000
a)
a)
U_ 14,000
a)
0
< 11000
m
u_
2
1 000
11,000
10,000
Water Production
2010 2011 2012 2013 2014 2015 2016 2017 2018
4.5
3.5
3 CD
a
2.5 =
6
2 CDS
1.5
0.5
Water
Production
O ENR
SUBJECT:
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
CONTINUED 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, NOVEMBER 4, 2017
LEGAL AD
TEAR SHEETS WANTED: One (11 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, NOVEMBER 2, 2017
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
PAMELA MTARRIS
DEPUTY CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Emailed to the Sentinel at classified1@lodinews.com at (time) on (date) (pages)
LNS Phoned to confirm receipt of all pages at (time) EB PMF (Initials)
forms\advins.doc
DECLARATION OF POSTING
NOTICE OF CONTINUED PUBLIC HEARING TO CONSIDER ADOPTING
RESOLUTION ADOPTING PRE -APPROVED ENGINEERING NEWS RECORD
ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT WATER RATES FOR
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, November 2, 2017, in the City of Lodi, San Joaquin County, California, a
Notice of Continued Public Hearing to consider adopting resolution adopting pre -
approved Engineering News Record adjustment index for usage -based and flat water
rates for residential, commercial, and industrial customers (attached and marked as
Exhibit A) was posted at the following locations:
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
WorkNet Office
I declare under penalty of perjury that the foregoing is true and correct.
Executed on November 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\DECPOSTPW 1.DOC
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF CONTINUED
PUBLIC HEARING
Date: January 17, 2018
Time: 7:00 p.m.
1
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
NOTICE OF CONTINUED PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, January 17, 2018, at the hour
of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council
will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi,
to consider the following matter:
a) Adoption of resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water rates for
residential, commercial, and industrial customers (as identified on
the attached Exhibit A).
Information regarding this item may be obtained in the Public Works
Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons
are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 W. Pine Street, 2nd
Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk at, or prior to, the
public hearing.
By Order of the Lodi City Council:
(\.r
Ferraiolo
ity Clerk
Dated: November 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 continue WaterRates.doc 11/1/17
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Future Rate Ceiling (2
Current
(Jan. 2017)
Proposed
(Jan. 2018)
Potential
(Jan. 2019)
Potential*
(Jan. 2020)
Sunset Rates
(Jan. 2021) (3)
Rate Increase -->
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 32.84
$ 33.83
$ 34.84
$ 35.89
$ 32.84
2 Bedroom
$ 39.44
$ 40.62
$ 41.84
$ 43.10
$ 39.44
3 Bedroom
$ 47.27
$ 48.69
$ 50.15
$ 51.65
$ 47.27
4 Bedroom
$ 56.79
$ 58.49
$ 60.24
$ 62.05
$ 56.79
5 Bedroom
$ 68.11
$ 70.15
$ 72.25
$ 74.42
$ 68.11
6 Bedroom
$ 81.75
$ 84.20
$ 86.73
$ 89.33
$ 81.75
7 Bedroom
$ 98.03
$ 100.97
$ 104.00
$ 107.12
$ 98.03
Multi -Family (1)
1 Bedroom
$ 28.19
$ 29.04
$ 29.91
$ 30.81
$ 28.19
2 Bedroom
$ 33.81
$ 34.82
$ 35.86
$ 36.94
$ 33.81
3 Bedroom
$ 40.58
$ 41.80
$ 43.05
$ 44.34
$ 40.58
Mobile Homes
Any Size
$ 28.19
$ 29.04
$ 29.91
$ 30.81
$ 28.19
Non -Residential
Existing unmetered
Varies
+3.0%
+3.0%
+3.0%
Varies
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
City of Lodi
Current and Proposed Usage -Based Water Rates
Future Rate Ceiling (2)
Current Proposed
(Jan. 2017) (Jan. 2018 )
Rate Increase -->
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
1" meter
1 1/2" meter
2" meter
$ 21.87
$ 34.34
$ 65.25
$ 102.52
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.87
1" meter $ 34.34
1 1/2" meter $ 65.25
2" meter $ 102.52
3" meter $ 189.50
4" meter $ 313.73
6" meter $ 624.03
8" meter $ 996.55
10" meter $1,431.26
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.97
Tier 2 (11-50 CCF $ 1.29
Tier 3 (>50 CCF) $ 1.60
Multi -Family and Non -Residential (1)
All water usage $ 1.15
3.0%
$ 22.53
$ 35.37
$ 67.21
$ 105.60
$ 22.53
$ 35.37
$ 67.21
$ 105.60
$ 195.19
$ 323.14
$ 642.75
$1,026.45
$1,474.20
$ 1.00
$ 1.33
$ 1.65
$ 1.18
Potential Potential*
(Jan. 2019) (Jan. 2020)
3.0% 3.0%
$ 23.21
$ 36.43
$ 69.23
$ 108.77
23.21
36.43
69.23
$ 108.77
$ 201.05
$ 332.83
$ 662.03
$1,057.24
$1,518.43
$ 23.91
$ 37.52
$ 71.31
$ 112.03
23.91
37.52
71.31
$ 112.03
$ 207.08
$ 342.81
$ 681.89
$1,088.96
$1,563.98
$ 1.03 $ 1.06
$ 1.37 $ 1.41
$ 1.70 $ 1.75
$ 1.22 $ 1.26
Sunset Rates
(Jan. 2021) (3)
21.87
34.34
65.25
102.52
21.87
34.34
65.25
102.52
189.50
313.73
624.03
996.55
1,431.26
0.97
1.29
1.60
$ 1.15
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
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 ADOPTION OF RESOLUTION
SETTING PRE -APPROVED ENGINEERING NEWS RECORD
ADJUSTMENT INDEX FOR USAGE -BASED AND FLAT WATER RATES
FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS
(AS IDENTIFIED ON THE ATTACHED EXHIBIT A)
PUBLISH DATE: SATURDAY, OCTOBER 7, 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, OCTOBER 5, 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 classified)@lodinews.com at (time) on (date) (pages)
LNS Phoned to confirm receipt of all pages at (time) EB PMF (initials)
forms\advins.doc
DECLARATION OF POSTING
NOTICE OF PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION
ADOPTING PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX
FOR USAGE -BASED AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, October 5, 2017, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider adopting resolution adopting 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 October 5, 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\DECPOSTPW 1.DOC
1
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: November 1, 2017
Time: 7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
A
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, November 1, 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 (as identified on
the attached Exhibit A).
Information regarding this item may be obtained in the Public Works
Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons
are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 W. Pine Street, 2nd
Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk at, or prior to, the
public hearing.
By Order of the Lodi City Council:
nnifer Ferraiolo
ity Clerk
Dated: October 4, 2017
p roved 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 9/27/17
FLAT RATES
Single Family Residential
1 Bedroom $ 32.84 $ 33.83
2 Bedroom $ 39.44 $ 40.62
3 Bedroom $ 47.27 $ 48.69
4 Bedroom $ 56.79 $ 58.49
5 Bedroom $ 68.11 $ 70.15
6 Bedroom $ 81.75 $ 84.20
7 Bedroom $ 98.03 $ 100.97
Multi -Family (1)
1 Bedroom $ 28.19 $ 29.04
2 Bedroom $ 33.81 $ 34.82
3 Bedroom $ 40.58 $ 41.80
Mobile Homes
Any Size $ 28.19 $ 29.04
Non -Residential
Existing unmetered Varies +3.0%
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Current Proposed
(Jan. 2017) (Jan. 2018)
Rate Increase --> 3.0%
Notes:
Future Rate Ceiling (2)
Potential Potential*
(Jan. 2019) (Jan. 2020)
3.0% 3.0%
$ 34.84 $ 35.89
$ 41.84 $ 43.10
$ 50.15 $ 51.65
$ 60.24 $ 62.05
$ 72.25 $ 74.42
$ 86.73 $ 89.33
$ 104.00 $ 107.12
$ 29.91 $ 30.81
$ 35.86 $ 36.94
$ 43.05 $ 44.34
$ 29.91 $ 30.81
+3.0% +3.0%
Sunset Rates
(Jan. 2021) (3)
$ 32.84
$ 39.44
$ 47.27
$ 56.79
$ 68.11
$ 81.75
$ 98.03
$ 28.19
$ 33.81
$ 40.58
$ 28.19
Varies
(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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
City of Lodi
Current and Proposed Usage -Based Water Rates
Current Proposed
(Jan. 2017) (Jan. 2018)
Rate Increase --> 3.0%
Future Rate Ceiling (2)
Potential Potential*
(Jan. 2019) (Jan. 2020)
3.0% 3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4 meter $ 21.87 $ 22.53
1" meter $ 34.34 $ 35.37
1 1/2" meter $ 65.25 $ 67.21
2" meter $ 102.52 $ 105.60
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.87 $ 22.53
1" meter $ 34.34 $ 35.37
1 1/2" meter $ 65.25 $ 67.21
2" meter $ 102.52 $ 105.60
3" meter $ 189.50 $ 195.19
4" meter $ 313.73 $ 323.14
6" meter $ 624.03 $ 642.75
8" meter $ 996.55 $1,026.45
10" meter $1,431.26 $1,474.20
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.97 $ 1.00
Tier 2 (11-50 CCF $ 1.29 $ 1.33
Tier 3 (>50 CCF) $ 1.60 $ 1.65
Multi -Family and Non -Residential (1)
All water usage $ 1.15 $ 1.18
Sunset Rates
(Jan. 2021) (3)
$ 23.21 $ 23.91
$ 36.43 $ 37.52
$ 69.23 $ 71.31
$ 108.77 $ 112.03
$ 23.21 $ 23.91
$ 36.43 $ 37.52
$ 69.23 $ 71.31
$ 108.77 $ 112.03
$ 201.05 $ 207.08
$ 332.83 $ 342.81
$ 662.03 $ 681.89
$1,057.24 $1,088.96
$1,518.43 $1,563.98
$ 1.03 $ 1.06
$ 1.37 $ 1.41
$ 1.70 $ 1.75
$ 1.22 $ 1.26
$ 21.87
$ 34.34
$ 65.25
$ 102.52
$ 21.87
$ 34.34
$ 65.25
$ 102.52
$ 189.50
$ 313.73
$ 624.03
$ 996.55
$ 1,431.26
$ 0.97
$ 1.29
$ 1.60
$ 1.15
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.