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HomeMy WebLinkAboutAgenda Report - July 17, 2019 PHAGENDA ITEM G-l Ctry op Lopr CouwcrL ConnuunrcATror TM AGENDA TITLE: MEETING DATE: PREPARED BY: Public Hearing to Consider Adopting Resolution Setting Pre-Approved Engineering News Record Adjustment lndex for Wastewater Rates for Residential, Commercial, and lndustrial Customers July 17,2019 Public Works Director RECOIIIIMENDED ACTION Public hearing to consider adopting resolution setting pre-approved Engineering News Record adjustment index for wastewater rates for residential, commercial, and industrial customers. BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the past several years. On March 20,2019, Council voted to approve a five-year program of rate adjustments for water, wastewater, and solid waste services, in accordance with the Proposition 218 rate setting process. The proposed rate adjustments are needed to generate sufficient revenue to meet ongoing operation and maintenance costs and debt service obligations, as well as, necessary capital maintenance improvements. For the water and wastewater utilities, the annual rate adjustment, if approved, is the lesser of the Engineering News Record (ENR) index change or three percent. A summary of the past years' wastewater rate adjustments relative to the ENR index change is provided in the table below. The purpose of this table is to demonstrate that, due to sound financial management, past actual rate increases have frequently been below the approved maximum or deferred to coordinate with the programming of capital improvement projects. ln fact, staff has not recommended a wastewater rate increase since July 1, 2016. July 2O14 July 2015 July 2016 July 2OL7 July 2018 July 2019 cap ENR lndex Approved/ Recommended 3.O% 3.0/o 3.0% 3.O% 3.O% 3.O% 2.60/o 2.8o/o 2.7% 4.2% 2.7% 2.9% 2.5% 2.8% 2.5% o% o% 2.9% ln preparation of the new five-year rate program, staff engaged the services of The Reed Group, lnc. to analyze and update the financial models and current rate structure within both utilities. At present, the wastewater operating fund balance exceeds target operating reserves. This surplus will be needed to fund wastewater expenditures amounting to over $30 million over the next five years without borrowing. A copy of the current wastewater Financial Plan is attached as Exhibit A. The recommended rate adjustments in the Financial Plan are 2.9 percent, beginning July 1 ,2019. The rates for this next year APPROVED KIWP\UTILITY RATES\W_\ ^M2019 W_VVW Rate lncrease\Co_PH_Wl / Rates 201g.doc er, City Manager 6t25t2019 Public Hearing to Consider Commercial, and lndustrial July 17,2019 Page2 Adopting Resolution Selting Pre-Approved Engineering News Record Adjustment lndex for Wastewater Rates for Res¡dential, Customers (Exhibit B) reflect a recommended increase of 2.9 percent which is lower than the three percent capped maximum. FISCAL IMPACT lncreased revenues are required to properly fund capital maintenance, to keep up with cost of service increases, and State mandated costs. FUNDING AVAILABLE: Not applicable. Charles E.ley, Jr Public Works Director CES/RAY/tdb Attachments KIWP\UTILITY RATES\W_\MM2019 W_VVW Rate lncrease\Cc_PH_l/Vì , Rates 2019.doc 6125t2019 FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21 FY 21‐22 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27 FY 27‐28 FY 28‐29 FY 29‐30Rate Adjustments ‐‐> 2.9% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%July July July July July July July July July July JulyWASTEWATER OPERATING FUND (FUND 530)Beginning Balance12,967,860$      15,365,382$   $11,780,300 $11,403,800 $13,990,100 $13,322,200 $9,695,600 $4,200,200 $6,743,500 $7,990,200 $3,278,100 $5,865,300 $7,507,900Operating RevenuesFlat Rate Revenue 4,071,900$        3,297,900$     3,393,600$     3,015,600$     2,619,600$     2,698,200$     2,335,400$     2,405,400$     1,239,000$     ‐$                 ‐$                 ‐$                 ‐$                Service Charge Revenue 5,576,600$        6,113,300$     6,343,600$     6,889,000$     7,458,500$     7,740,700$     8,313,500$     8,626,300$     9,245,700$     9,896,600$     10,264,900$   10,647,100$   11,044,000$  Usage Charge Revenue 5,215,043$        5,796,900$     6,032,500$     6,637,100$     7,267,400$     7,554,900$     8,186,000$     8,507,000$     8,958,200$     9,430,200$     9,798,400$     10,180,700$   10,270,000$  Miscellaneous Revenue 204,007$           180,000$        211,900$        211,900$        211,900$        211,900$        211,900$        211,900$        211,900$        211,900$        211,900$        211,900$        211,900$       Grant Revenue 400,282$           3,150,000$     ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Interest Earnings 205,140$           220,000$        353,400$        342,100$        419,700$        399,700$        290,900$        126,000$        202,300$        239,700$        98,300$           176,000$        225,200$       Trans. From/(To) WW Rate Stab. ‐$                    ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Trans. From WW IMF Fund for DS ‐$                    ‐$                 400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$       Total Operating Revenues15,672,971$      18,758,100$   16,735,000$   17,495,700$   18,377,100$   19,005,400$   19,737,700$   20,276,600$   20,257,100$   20,178,400$   20,773,500$   21,615,700$   22,151,100$  Operating Expenses and TransfersWastewater Administration 1,324,120$        1,397,140$     1,439,000$     1,481,700$     1,526,100$     1,571,700$     1,618,500$     1,666,600$     1,716,400$     1,767,600$     1,820,200$     1,874,500$     1,930,300$    Operating Transfer Out 1,108,270$        1,083,710$     1,116,200$     1,149,700$     1,184,200$     1,219,700$     1,256,300$     1,294,000$     1,332,800$     1,372,800$     1,414,000$     1,456,400$     1,500,100$    Damage to Property 2,861$                5,800$             5,900$             6,000$             6,100$             6,200$             6,300$             6,400$             6,500$             6,600$             6,700$             6,800$             7,000$            White Slough WPCF 3,828,052$        4,434,580$     4,567,800$     4,704,900$     4,845,800$     4,990,800$     5,140,200$     5,294,400$     5,453,100$     5,616,400$     5,784,900$     5,958,400$     6,137,000$    Electricity 629,470$           603,060$        621,200$        639,800$        659,000$        678,800$        699,200$        720,200$        741,800$        764,100$        787,000$        810,600$        834,900$       Sanitary System Maintenance 889,128$           791,730$        815,700$        840,100$        865,200$        891,100$        917,700$        945,200$        973,500$        1,002,600$     1,032,500$     1,063,400$     1,095,000$    Storm Drainage Maintenance 565,918$           725,890$        748,000$        770,500$        793,600$        817,400$        841,900$        867,200$        893,100$        919,900$        947,400$        975,700$        1,004,600$    Industrial System Maintenance 5,590$                12,200$           12,500$           12,800$           13,100$           13,400$           13,700$           14,000$           14,300$           14,600$           14,900$           15,200$           15,500$          Water/Wastewater Personnel 139,712$           ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Watershed Education 42,290$              74,310$           76,500$           78,700$           81,000$           83,400$           85,800$           88,300$           90,800$           93,300$           95,900$           98,500$           101,300$       Debt Service 2,896,776$        3,006,576$     3,006,700$     3,003,200$     3,005,900$     3,006,500$     3,002,500$     3,374,000$     2,868,100$     2,869,600$     1,650,800$     1,652,600$     1,656,600$    Transfer to Capital Fund (Fund 531) 1,345,754$        $10,208,149 4,702,000$     2,222,000$     6,065,000$     9,353,000$     11,651,000$   3,463,000$     4,920,000$     10,463,000$   4,632,000$     6,061,000$     6,298,000$    Total Oper. Expenses and Transfers12,777,941$      22,343,145$   17,111,500$   14,909,400$   19,045,000$   22,632,000$   25,233,100$   17,733,300$   19,010,400$   24,890,500$   18,186,300$   19,973,100$   20,580,300$  Ending Balance 15,862,890$     11,780,337$   11,403,800$   13,990,100$   13,322,200$   9,695,600$     4,200,200$     6,743,500$     7,990,200$     3,278,100$     5,865,300$     7,507,900$     9,078,700$    Operating Reserve (50%) 5,716,000$        6,067,000$     6,205,000$     6,344,000$     6,490,000$     6,640,000$     6,791,000$     7,135,000$     7,045,000$     7,214,000$     6,777,000$     6,956,000$     7,141,000$     50%Available Funds 10,146,890$      5,713,337$     5,198,800$     7,646,100$     6,832,200$     3,055,600$     (2,590,800)$    (391,500)$       945,200$        (3,935,900)$    (911,700)$       551,900$        1,937,700$    Debt Service Coverage (min. 1.25) 2.64                    3.51                 2.45                 2.62                 2.82                 2.94                 3.09                 2.80                 3.18                 3.04                 5.45                 5.75                 5.86                WASTEWATER CAPITAL FUND (FUND 531)Beginning Balance1,067,097$        246,851$        ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Revenues and Transfers InTransfer from Operating Fund 1,345,754$        10,208,149$   4,702,000$     2,222,000$     6,065,000$     9,353,000$     11,651,000$   3,463,000$     4,920,000$     10,463,000$   4,632,000$     6,061,000$     6,298,000$    Transfer from WW IMF Fund ‐$                    1,000,000$     ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Total Revenues and Transfers In1,345,754$        11,208,149$   4,702,000$     2,222,000$     6,065,000$     9,353,000$     11,651,000$   3,463,000$     4,920,000$     10,463,000$   4,632,000$     6,061,000$     6,298,000$    Capital Program ExpendituresWastewater Capital Outlay 820,000$           3,955,000$     3,193,000$     1,034,000$     3,661,000$     394,000$        3,594,000$     1,761,000$     3,813,000$     2,660,000$     2,740,000$     4,166,000$     4,291,000$    Wastewater Plant 1,346,000$        7,500,000$     1,509,000$     1,188,000$     2,404,000$     8,959,000$     8,057,000$     1,702,000$     1,107,000$     7,803,000$     1,892,000$     1,895,000$     2,007,000$    Total Capital Prog. Expend.2,166,000$        11,455,000$   4,702,000$     2,222,000$     6,065,000$     9,353,000$     11,651,000$   3,463,000$     4,920,000$     10,463,000$   4,632,000$     6,061,000$     6,298,000$    Ending Balance 246,851$           ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                City of LodiWastewater System Financial PlanThe Reed Group, Inc.DRAFT — 5/2/2019 FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21 FY 21‐22 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27 FY 27‐28 FY 28‐29 FY 29‐30WASTEWATER IMF FUND (FUND 533)Beginning Balance759,967$           809,400$        712,500$        621,700$        539,900$        467,600$        405,700$        355,000$        316,400$        290,700$        279,000$        282,200$        301,400$       Revenues and Transfers InInterest Earnings ‐$                    ‐$                 21,400$           18,700$           16,200$           14,000$           12,200$           10,700$           9,500$             8,700$             8,400$             8,500$             9,000$            Wastewater IMF Revenue 503,776$           903,130$        287,800$        299,500$        311,500$        324,100$        337,100$        350,700$        364,800$        379,600$        394,800$        410,700$        427,200$       Total Revenues and Transfers In503,776$           903,130$        309,200$        318,200$        327,700$        338,100$        349,300$        361,400$        374,300$        388,300$        403,200$        419,200$        436,200$       Wastewater IMF Expend. & TransfersWastewater IMF Projects ‐$                    ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Transfer to Oper. for Debt Service ‐$                    ‐$                 400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$       Transfer to Cap. for Projects ‐$                    1,000,000$     ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Total Wastewater IMF Expend.‐$                    1,000,000$     400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$        400,000$       Ending Balance 1,263,743$        712,530$        621,700$        539,900$        467,600$        405,700$        355,000$        316,400$        290,700$        279,000$        282,200$        301,400$        337,600$       Owed Fund 530 for Debt Service4,243,000$          3,243,000$       2,843,000$       2,443,000$       2,043,000$       1,643,000$       1,243,000$       843,000$           443,000$           43,000$             (357,000)$         (757,000)$         (1,157,000)$     STORMWATER IMF FUND (FUND 535)Beginning Balance925,574$           930,384$        945,700$        1,069,000$     1,199,800$     1,338,600$     1,485,700$     (1,140,400)$    (1,058,900)$    (970,300)$       (874,200)$       (770,100)$       (657,600)$      Revenues and Transfers InInterest Earnings ‐$                    ‐$                 28,400$           32,100$           36,000$           40,200$           44,600$           (34,200)$         (31,800)$         (29,100)$         (26,200)$         (23,100)$         (19,700)$        Stormwater IMF Revenue 7,759$                15,330$           94,900$           98,700$           102,800$        106,900$        111,300$        115,700$        120,400$        125,200$        130,300$        135,600$        141,000$       Total Revenues and Transfers In7,759$                15,330$           123,300$        130,800$        138,800$        147,100$        155,900$        81,500$           88,600$           96,100$           104,100$        112,500$        121,300$       Stormwater IMF Expend. & TransfersStormwater IMF Projects ‐$                    ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 2,782,000$     ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Transfer to Cap. for Projects ‐$                    ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Total Stormwater IMF Expend.‐$                    ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 2,782,000$     ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Ending Balance 933,333$           945,714$        1,069,000$     1,199,800$     1,338,600$     1,485,700$     (1,140,400)$   (1,058,900)$   (970,300)$       (874,200)$       (770,100)$       (657,600)$       (536,300)$      WASTEWATER RATE STABILIZATION FUND (FUND 534)Beginning Balance500,000$           500,000$        500,000$        515,000$        530,500$        546,400$        562,800$        579,700$        597,100$        615,000$        633,500$        652,500$        672,100$       Revenues and Transfers InInterest Earnings ‐$                    ‐$                 15,000$           15,500$           15,900$           16,400$           16,900$           17,400$           17,900$           18,500$           19,000$           19,600$           20,200$          Transfers From/(To) Oper. Fund ‐$                    ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                Total Revs. and Transfers In/(Out)‐$                    ‐$                 15,000$           15,500$           15,900$           16,400$           16,900$           17,400$           17,900$           18,500$           19,000$           19,600$           20,200$          Ending Balance 500,000$           500,000$        515,000$        530,500$        546,400$        562,800$        579,700$        597,100$        615,000$        633,500$        652,500$        672,100$        692,300$       FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21 FY 21‐22 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27 FY 27‐28 FY 28‐29 FY 29‐30Oper. & Maint. Costs 8,535,411$        9,128,420$     9,402,800$     9,684,200$     9,974,100$     10,272,500$   10,579,600$   10,896,300$   11,222,300$   11,557,900$   11,903,500$   12,259,500$   12,625,700$  Debt Service Costs 2,896,776$        3,006,576$     3,006,700$     3,003,200$     3,005,900$     3,006,500$     3,002,500$     3,374,000$     2,868,100$     2,869,600$     1,650,800$     1,652,600$     1,656,600$    Capital Prog. Transfer 1,345,754$        10,208,149$   4,702,000$     2,222,000$     6,065,000$     9,353,000$     11,651,000$   3,463,000$     4,920,000$     10,463,000$   4,632,000$     6,061,000$     6,298,000$    Proposed Revenues 15,672,971$      18,758,100$   16,735,000$   17,495,700$   18,377,100$   19,005,400$   19,737,700$   20,276,600$   20,257,100$   20,178,400$   20,773,500$   21,615,700$   22,151,100$  Ending Balance 15,862,890$      11,780,337$   11,403,800$   13,990,100$   13,322,200$   9,695,600$     4,200,200$     6,743,500$     7,990,200$     3,278,100$     5,865,300$     7,507,900$     9,078,700$    Target Oper. Reserve 5,716,000$        6,067,000$     6,205,000$     6,344,000$     6,490,000$     6,640,000$     6,791,000$     7,135,000$     7,045,000$     7,214,000$     6,777,000$     6,956,000$     7,141,000$    Min. Oper. Reserve3,320,000$     3,395,500$     3,567,500$     3,522,500$     3,607,000$     3,388,500$    Current Revenues 15,468,922$      18,578,100$   15,672,200$   15,943,200$   16,301,900$   16,395,900$   16,546,500$   16,498,400$   16,019,400$   15,503,300$   15,482,800$   15,682,100$   15,854,200$  City of LodiWastewater System Financial PlanThe Reed Group, Inc.DRAFT — 5/2/2019 Exhibit B City of Lodi -- Wastewater Utility Current and Proposed Wastewater Rates Current July 2019 Percent Increase 2.9 Flat Rates ($/month) 1 Bedroom 27.90$               28.71$          2 Bedroom 37.20$               38.28$          3 Bedroom 46.49$               47.84$          4 Bedroom 55.79$               57.41$          5 Bedroom 65.09$               66.98$          6 Bedroom 74.39$               76.25$          7 Bedroom 83.69$               86.12$          Mobile Homes  Any Size 27.90$               28.71$          Schools 18 Students per SSU 36.18$               37.23$          Usage-Based Rates (1) Monthly Usage Charge ($/CCF) (1) 2.89$                 2.97$            3/4" Meter Charge per month 25.40$               26.14$          1" Meter Charge per month 40.92$               42.11$          1 1/2" Meter Charge per month 79.06$               81.35$          2" Meter Charge per month 124.33$             127.94$        3" Meter Charge per month 232.29$             239.03$        4" Meter Charge per month 385.52$             396.70$        6" Meter Charge per month 768.28$             790.56$        8" Meter Charge per month 1,227.76$         1,263.37$    Notes: (1) Winter water usage determined as average monthly usage from December through February. RESOLUTTON NO. 2019-143 A RESoLUTIoN oF THE,LoDI cITY couNcIL SETTING PRE-APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR USAGE-BASED AND FLAT WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS WHEREAS, Resolution No. 2019-42 approved annual wastewater rate increases in an amount not to exceed the percentage change in the Engineering News Record (ENR) Twenty Cities Annual Average lndex, or three percênt, beginning 2019 through January 2023. A Proposition 218 procedure was conducted that validated this action; and WHEREAS, staff has regularly updated the Wastewater Utility Financial Plan with the assistance of the The Reed Consulting Group, lnc., of Sacramento; and WHEREAS, the current water rate adjustment reflects a 2.9 percent increase. NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby set pre-approved Engineering News Record adjustment index for usage-based and flat wastewater rates for residential, commercial and industrial customers, as outlined on Exhibit A, with the effective date of the increase to be August 1, 2019. Dated: July 17,2019 I hereby certify that Resolution No. 2019-143 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 17 ,2019, by the following vote: AYES:COUNCIL MEMBERS - Johnson, Nakanishi, and Mayor Chandler COUNCIL MEMBERS - Kuehne and Mounce COUNCIL MEMBERS - None COUNCIL MEMBERS - None NOES: ABSENT ABSTAIN IFER o Clerk 2019-143 Exhibit A City of Lodi -- Wastewater Utility Current and Wastewater Rates Notes: (1) Winter water usage determined as average monthly usage from December through February Current July 2019 Percent Increase Flat Rates ($/month) 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom 6 Bedroom 7 Bedroom Mobile Homes Any Size Schools 1"8 Students per SSU Usage-Based Rates (1) Monthly Usage Charge ($/CCr¡ 1r¡ 3/4" Meter Charge per month 1" Meter Charge per month 1 1/2" Meter Charge per month 2" Meter Charge per month 3" Meter Charge per month 4" Meter Charge per month 6" Meter Charge per month 8" Meter Charge per month 5 s $ s s s 5 ) s $ $ s s s s 5 s s 2.9 27.90 5 28.71 36.18 5 Zt.ZS 27.90 s 37.20 s 46.49 $ ss.79 s 6s.09 s 74.39 $ 83.69 s 28.71, 38.28 47.84 57.4L 66.98 76.25 86.12 2.89 25.40 40.92 79.06 L24.33 232.29 385.52 768.28 r,227.76 S z.gt s 26.74 s 42.t1 $ 81.3s $ L27.94 s 239.03 s 3s6.70 $ zgo.so S i.,263.37 Public Hearing Setting Pre-Approved Wastewater Rates Agenda Item G-1 July 17, 2019 Background •Last rate increase in July 1, 2016 •March 20, 2019 – Council adopted five-year schedule of rate adjustments –ENR based indexing or maximum 3% –Proposition 218 Procedure affirmed schedule –Updated financial model used to analyze proposed rate changes •June 25, 2019 – WSWPCF Shirtsleeve Update Recommendation 2.9% increase in FY 2018/19 followed by annual ENR Index change increases (or maximum 3% through December 31, 2023) •Proposition 218 – 3% maximum annual increase •2018 ENR Index Change – 2.9% •Pre-approved increase by March 20, 2019 Council Action 5-Year Summary Year Prop 218 Approved ENR Implemented 2014 3.0% 2.6% 2.5% 2015 3.0% 2.8% 2.8% 2016 3.0% 2.7% 2.5% 2017 3.0% 4.1% 0% 2018 3.0% 2.7% 0% Wastewater Comparative Rates Current July 2019 Increase Flat Rates 2 Bedroom $37.20 $38.28 $1.08 3 Bedroom $46.49 $47.84 $1.35 4 Bedroom $55.79 $57.41 $1.62 Usage-Based Rates Monthly Usage Charge ($/CCF) $2.89 $2.97 $0.08 ¾” Meter Monthly Charge $25.40 $26.14 $0.74 Typical bill @ 9 CCF $51.41 $52.87 $1.46 Wastewater Rate Comparisons Agency Average Bill City of Tracy* $35.20 City of Manteca* $43.30 City of Stockton* $44.10 City of Lodi** $52.87 City of Galt* $69.06 City of Lathrop* $75.00 * Flat Rate **Based on 900 cubic feet per month Note: Lodi currently on upper end of compliance Planned Capital Projects FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Misc. System Relocations $35,000 $35,000 $35,000 $35,000 $35,000 Misc. Wastewater Taps $40,000 $40,000 $40,000 $40,000 $40,000 Collect. System Capac. Enhanc. Projects $200,000 Wastewater Main Replac./Lining Proj. $2,600,000 $2,000,000 $2,000,000 Sewer Lift Station Wet Well Rehab $250,000 Storm Drain Trash Handling $750,000 $750,000 $750,000 Lincoln Storm Water Pump Rehab $75,000 Kofu Storm Water Pump Rehab $200,000 Salas Storm Water Pump Rehab $200,000 Henry Glaves Storm Water Pump Rehab $200,000 Vehicles /Equipment $150,000 $150,000 $75,000 $75,000 $75,000 Irrigation Improvements $750,000 Electrical/Screen/SCADA Design $900,000 $600,000 Electrical Upgrades/SCADA Construction $1,000,000 $7,000,000 $5,500,000 Miscellaneous Future Projects $100,000 Cloth Filter Media Replacement $30,000 $30,000 $30,000 $30,000 $30,000 Primary Chain Flights $40,000 $40,000 $40,000 NCPA Maintenance Generator $150,000 $150,000 $150,000 $150,000 $150,000 Emergency Generator Maintenance $30,000 $30,000 $30,000 $30,000 $30,000 Compliance Studies and Reports $200,000 $200,000 $200,000 $200,000 $200,000 Aeration Diffuser Replacement $500,000 Pond Gates $15,000 $15,000 Band Screen Rebuild $75,000 Primary Skimmers $20,000 Secondary Scum Trough Drives $20,000 DWP-H2 Replacement $15,000 $15,000 Fan Press Replacement $1,000,000 $4,565,000 $2,095,000 $5,550,000 $8,310,000 $10,050,000 Planned Capital Projects FY 24 -25 FY 25 -26 FY 26 -27 FY 27 -28 FY 28 -29 Misc. System Relocations $35,000 $35,000 $35,000 $35,000 $35,000 Misc. Wastewater Taps $40,000 $40,000 $40,000 $40,000 $40,000 Wastewater Main Replac./Lining Proj. $2,000,000 $1,000,000 $1,000,000 $2,000,000 Storm Drain Trash Handling $750,000 $750,000 $750,000 $750,000 $750,000 Peterson Storm Water Pump Rehab $200,000 Cluff Storm Water Pump Rehab $200,000 Beckman Storm Water Pump Rehab $200,000 Vehicles /Equipment $450,000 $75,000 $75,000 $75,000 $75,000 Storm Water Pump Rehab $200,000 $200,000 Irrigation Improvements $1,000,000 $1,750,000 Cloth Filter Media Replacement $30,000 $30,000 $30,000 $30,000 $30,000 Primary Chain Flights $40,000 $40,000 NCPA Maintenance Generator $150,000 $150,000 $150,000 $150,000 $150,000 Emergency Generator Maintenance $30,000 $30,000 $30,000 $30,000 $30,000 Compliance Studies and Reports $200,000 $200,000 $200,000 $200,000 $200,000 UV Design/Replacement $450,000 $4,000,000 DWP-H2 Replacement $15,000 Unspecified Treatment Plant Rehab $1,000,000 $1,000,000 $2,900,000 $4,000,000 $8,260,000 $3,550,000 $4,510,000 •South Electric Building Replacement Project –Relocate existing electric building –Upgrade obsolete electric infrastructure –Building components reaching useful life –Coarse screen and septage receiving improvements –Aeration diffuser improvements •Schedule: Design FY19/20 > 20/21 = $1.5M • Construction FY21/22 > 23/24 = $13.5M •Cost: $15,000,000 Planned Capital Projects - WSWPCF •Fan Press Installation Project –Install additional fan press •Schedule: Construction FY 23/24 •Cost: $1,000,000 Planned Capital Projects - WSWPCF •Wastewater Main Replacement / Lining Projects –$2.6M programmed in FY 19/20 –$2.0M programmed in FY 21/22 –$2.0M programmed in FY 23/24 –$6.6M Total •Storm Drain Trash Handling –$2.25M through FY 23/24 Planned Capital Projects – In Town Wastewater Operating Balances Recommended Action •Adopt Resolution Setting Pre-Approved Engineering News Record Adjustment Index for Usage-Based and Flat Wastewater Rates for Residential, Commercial, and Industrial Customers •Rate adjustment effective August 1, 2019 Questions? G-l RESOLUTION NO. 2019. A RESOLUTION OF THE LODI CITY COUNCIL SETTING PRE-APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR USAGE-BASED AND FLAT WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS WHEREAS, Resolution No. 2019-42 approved annual wastewater rate increases in an amount not to exceed the percentage change in the Engineering News Record (ENR) Twenty Cities Annual Average lndex, or three percent, beginning 2019 through January 2023. A Proposition 218 procedure was conducted that validated this action; and WHEREAS, staff has regularly updated the Wastewater Utility Financial Plan with the assistance of the The Reed Consulting Group, lnc., of Sacramento; and WHEREAS, the current water rate adjustment reflects a 2.9 percent increase. NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby set pre-approved Engineering News Record adjustment index for usage-based and flat wastewater rates for residential, commercial and industrial customers, as outlined on Exhibit A, with the effective date of the increase to be July August 1,2019. Dated: July 17,2019 I hereby certify that Resolution No. 2019--was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 17 , 2019, by the following vote: AYES: COUNCIL MEMBERS - NOES: COUNCIL MEMBERS - ABSENT: COUNCIL MEMBERS - ABSTAIN: COUNCIL MEMBERS - JENNIFER M. FERRAIOLO City Clerk 2019-