HomeMy WebLinkAboutResolutions - No. 2019-42RESOLUTION NO. 2019-42
A RESOLUTION OF THE LODI CITY COUNCIL
SETTING FUTURE WATER, WASTEWATER AND
SOLID WASTE RATE SCHEDULES PURSUANT TO
PROPOSITION 218 FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
WHEREAS, the Council of the City of Lodi finds as follows:
1. The City of Lodi provides water supply and wastewater disposal service
to its citizens and provides solid waste disposal service through a
Franchise Agreement with USA Waste of California, Inc. dba Central
Valley Waste Services (Central Valley); and
2. The City charges customers of the water and wastewater utilities a
charge to fund the on-going operation and maintenance of the water
supply and wastewater disposal service; and
3. Pursuant to Lodi Municipal Code Section 13.16.110 (Ordinance
No. 1709), the schedule of rates for solid waste collection shall be
established and adopted by the City Council from time to time by
Resolution; and
Central Valley has requested increases to the current solid waste
disposal rates for inflation and increased disposal fees as permitted under
their Franchise Agreement; and
5. The City engaged the services of The Reed Group, Inc., to analyze the
financial models and current rate structure within the City's water and
wastewater utilities. The final report, Water and Water Rate Update
Study is on file with the City's Public Works Department; and
6. Staff recommends adopting future adjustments with limits to usage -based
and flat water and wastewater rates for residential, multi -family, and non-
residential customers as presented in Exhibit A to become effective upon
City Council approval of rate increase resolutions at a future date; and
7. Water, wastewater and solid waste rate schedules and an analysis of
rates were provided to the City Council at a publicly noticed Council
Meeting held on January 16, 2019; and
8. Staff recommends approval of the Central Valley Commercial Organics
Rate schedule, as presented in Exhibit B; and
9. The Council directed that notice of a hearing on the water, wastewater
and solid waste rate schedules be given to the property owners and
water, wastewater, and solid waste utility customers in the City, with such
notice in both English and Spanish to include, among other matters, the
information required to be included pursuant to California law; and
follows:
10. Pursuant to California Constitution, Section 6 of Article XIIID and
Government Code 53755, such notice has been mailed to those property
owners and account holders at least 45 days before the hearing, as
evidenced by a Certificate of Mailing on file with the City Clerk; and
11 The Council also directed that notice of a hearing be given with such
notice to include the information required to be included pursuant to
Government Code section 54354.5; and
12. Such notice has been published once each week for two weeks, in
accordance with Government Code section 54354.5, in the Lodi News -
Sentinel, as evidenced by Proofs of Publication on file with the City Clerk;
and
13. On March 20, 2019, the City Council conducted said public hearing, at
which time the City Council heard all objections and protests to the
proposed usage -based and flat water and wastewater rates and solid
waste rates for residential, commercial and industrial customers; and
14. Written protests against the proposed usage -based and flat water and
wastewater rates and solid waste rates for residential, commercial and
industrial customers were not presented by a majority of the property
owners and water, wastewater and solid waste utility customers; and
15. The proposed usage -based and flat water and wastewater rates and solid
waste rates for residential, commercial and industrial customers are not
discriminatory or excessive, are sufficient under Government Code
section 54515, comply with the provisions or covenants of any
outstanding revenue bonds of the City payable from the revenues of the
enterprise, comply with the provisions of Title 5, Division 2, Chapter 6 of
the Government Code, and are in compliance with all other applicable
law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as
Section 1. Recitals. The foregoing recitals are true and correct.
Section 2. Levy of Charges. Pursuant to Sections 13.08.010, 13.12.240, and
13.16.110 of the Lodi Municipal Code, the usage -based and flat water and wastewater
rates for residential, commercial, and industrial customers and the Waste Management
Commercial Organics rate schedule, as attached hereto as Exhibits A and B are hereby
approved.
Section 3. Future Adjustments. As provided by Government Code Section
53756, the future adjustments shown in Exhibit A may be adopted annually for a period
of five years by resolution beginning March 20, 2019 through December 31, 2023 for
water, wastewater rates, with Council approval following a public hearing, in an amount
not to exceed the smaller of the limits stated in Exhibit A or the percentage change in the
Engineering News Record (ENR) Twenty Cities Annual Average Index for water and
wastewater or other index as approved by the City Council by resolution. For solid
waste rates, the annual adjustment will not exceed 80 percent of the annual change in
the Consumer Price Index for all Urban Consumers for San Francisco-Oakland-
San Jose, California area (CPI), All Items (1982 — 84 = 100) published by the Bureau of
Labor Statistics, plus an adjustment for extraordinary increases in landfill fees, fuel and
energy costs and changes in law up to 100 percent of the annual change in the CPI. The
adjustment shall not be made if it causes rates to exceed the cost of service and Notice
of the Adjustment shall be mailed to each account not less than 30 days before the
effective date of the adjustment.
Section 4. Effective Date. This Resolution shall take effect from and after the
date of its passage.
Dated: March 20, 2019
I hereby certify that Resolution No. 2019-42 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 20, 2019, by the following
vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
nnifer M G-rraiolo
City Clerk
2019-42
Exhibit A
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
*Pending a Prop 218 approval
(3) Per Resolution No. 2017-23 adopted February 15, 2017.
Future Rate Ceiling (2)
Current Proposed*
(Jan. 2017) (April 2019)
Potential
(Jan. 2020)
Sunset Rates
(Jan. 2021) (3)
Rate Increase --> 2.5%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom $ 32.84 $ 33.66
$ 34.67
$ 31.88
2 Bedroom $ 39.44 $ 40.43
$ 41.64
$ 38.29
3 Bedroom $ 47.27 $ 48.45
$ 49.90
$ 45.89
4 Bedroom $ 56.79 $ 58.21
$ 59.96
$ 55.14
5 Bedroom $ 68.11 $ 69.81
$ 71.90
$ 68.11
6 Bedroom $ 81.75 $ 83.79
$ 86.30
$ 81.75
7 Bedroom $ 98.03 $ 100.48
$ 103.49
$ 98.03
Multi -Family (1)
1 Bedroom $ 28.19 $ 28.89
$ 29.76
$ 27.37
2 Bedroom $ 33.81 $ 34.66
$ 35.70
$ 32.82
3 Bedroom $ 40.58 $ 41.59
$ 42.84
$ 39.40
Mobile Homes
Any Size $ 28.19 $ 28.89
$ 29.76
$ 27.37
Non -Residential
Existing unmetered Varies +2.5%
+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
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.
Future Rate Ceiling (2)
Current Proposed*
(Jan. 2017) (April 2019)
Potential
(Jan. 2020)
Sunset Rates
(Jan. 2021) (3)
Rate Increase --> 2.5%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter $ 21.87 $ 22.42
$ 23.09
$ 21.23
1" meter $ 34.34 $ 35.20
$ 36.26
$ 33.34
1 1/2" meter $ 65.25 $ 66.88
$ 68.89
$ 63.34
2" meter $ 102.52 $ 105.08
$ 108.23
$ 99.53
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.87 $ 22.42
$ 23.09
$ 21.23
1" meter $ 34.34 $ 35.20
$ 36.26
$ 33.34
1 1/2" meter $ 65.25 $ 66.88
$ 68.89
$ 63.34
2" meter $ 102.52 $ 105.08
$ 108.23
$ 99.53
3" meter $ 189.50 $ 194.24
$ 200.07
$ 183.98
4" meter $ 313.73 $ 321.57
$ 331.22
$ 304.59
6" meter $ 624.03 $ 639.63
$ 658.82
$ 605.85
8" meter $ 996.55 $ 1,021.46
$ 1,052.10
$ 967.52
10" meter $ 1,431.26 $ 1,467.04
$ 1,511.05
$ 1,389.57
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.97 $ 0.99
$ 1.02
$ 0.94
Tier 2 (11-50 CCF) $ 1.29 $ 1.32
$ 1.36
$ 1.25
Tier 3 (>50 CCF) $ 1.60 $ 1.64
$ 1.69
$ 1.56
Multi -Family and Non -Residential (1)
All water usage $ 1.15 $ 1.18
$ 1.22
$ 1.12
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
Temporary Water Shortage Rate Surcharges
Normal Potential Minor Moderate Severe Critical
Supply Shortage Shortage Shortage Shortage Shortage
Conditions (Voluntary) (Mandatory) (Mandatory) (Mandatory) (Mandatory)
Use Reduction Goal --> None 5% to 10% 10% to 20% 20% to 30% 30% to 50% > 50%
Temp. Water Shortage Surcharge (2) None None 5% 10% 15% 20%
Monthly Service Charges
Up to 3/4" meter $ 22.50
1" meter $ 35.34
1 1/2" meter $ 67.14
2" meter $ 105.49
3" meter $ 195.00 No Changes to Service Charges
4" meter $ 322.83
6" meter $ 642.13
8" meter $ 1,025.45
10" meter $ 1,472.77
Water Usage Rates ($/CCF) (3)
Single Family Residential
Tier 1 (0-10 CCF) $ 1.00 $ 1.00 $ 1.05 $ 1.10 $ 1.15 $ 1.20
Tier 2 (11-50 CCF) $ 1.33 $ 1.33 $ 1.40 $ 1.46 $ 1.53 $ 1.60
Tier 3 (> 50 CCF) $ 1.65 $ 1.65 $ 1.73 $ 1.82 $ 1.90 $ 1.98
Multi -Family $ 1.18 $ 1.18 $ 1.24 $ 1.30 $ 1.36 $ 1.42
Non -Residential $ 1.18 $ 1.18 $ 1.24 $ 1.30 $ 1.36 $ 1.42
Notes:
(1) The temporary water shoratge rate surcharge percentages are shown applied to the proposed water usage rates for April 2019
for illustrative purposes. The percentages would be applied to any then -current water usage rates when implemented by
declaration of a water shortage by the City Council.
(2) The termporarywater shortage rate surcharge woud be an incremental (percentage) increase in the water usage rates, but wou
not be applied to monthly service charges or to any flat water rates for unmetered customers.
(3) The water usage rates shown for Minor through Critical shortage conditions incorporate the temporary water shortage rate
surcharges.
Exhibit B
Can
Size
35g
35g
64g
64e
ix per week per cart
2x per week per cart
ix per week per cart
2x ner week per cart
Rates - Commercial Organics Collection and Processing Services
Frequency
available for customers with 4+ carts
available for customers with 4+ carts
Monthly Rate
$46.60
$93.19
$70.11
$140.22
Contamination
$100 per occurrence
$100 per occurrence
$100 per occurrence
$100 per occurrence