HomeMy WebLinkAboutAgenda Report - February 16, 2022 G-01 PHAGENDA ITEM G4=(
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AGENDA TITLE: Public Hearing to Consider Adopting Resolution Setting Pre -Approved 2021
Engineering News Record Adjustment Index for Usage -Based and Flat Water Rates
for Residential, Commercial, and Industrial Customers
MEETING DATE: February 16, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Conduct 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 March 20, 2019, City Council approved a
five-year rate plan in accordance with the Proposition
218 rate setting process. The proposed rate adjustments are needed to generate sufficient revenue
to meet projected operation and maintenance costs and debt service obligations, as well as,
necessary capital maintenance improvements. The rate plan also included a rate "sunset" that rolled
back rates on January 1, 2021 to January 1, 2016 levels. Prior to this rate rollback, there had not
been an increase to rates since fiscal year 2018/19.
While the approved five-year rate plan allows for a maximum increase of 3 percent, staff has analyzed the
water financial plan and recommends a 2 percent increase. A 2 percent increase will support a healthy
reserve balance that is between the recommended level of 50% and the minimum level of 25%. A
summary of current and proposed rates for flat -rate and usage -based rate customers is provided in
Exhibit A, which reflects a 2 percent increase. For a resident still 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 1,500 cubic feet of water per month will see an increase from $36.88 to $37.65, or $0.77
per month. The water utility, due to the foregoing of the January 1, 2020 pre -approved rate increase and
implementation of the January 1, 2021 rate rollback, projects fund balances to dip below the 50 percent
reserve target starting in Fiscal Years 2024/25.
Staff recommends adopting resolution setting pre -approved Engineering News Record adjustment index
for usage -based and flat water rates for residential, commercial, and industrial customers.
FISCAL IMPACT: Increased revenues are required to properly fund capital maintenance, and
to keep up with cost of service increases.
FUNDING AVAILABLE: Not applicable.
Ci_C3P_P_C)
Charles FF Swlmley, Jr.
Public Works Director
Prepared by Rebecca Areida-Yadav, Public Works Management Analyst
CES/RAY/cd
Attachment
APPROVED: SteveSchwabauer
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\UTILITY RATES\W WW\2022 W WW Rate Increase\CC PH_WaterRates2022 doc
1/5/2022
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
Current
(Jan. 2021)
Proposed Rates
(Feb. 2022)
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
3.000%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
Current
(Jan. 2021)
Proposed Rates
(Feb. 2022)
Rate Increase -->
2.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 21.23
$
21.65
1" meter
$ 33.34
$
34.01
1 1/2" meter
$ 63.35
$
64.62
2" meter
$ 99.53
$
101.52
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 21.23
$
21.65
1" meter
$ 33.34
$
34.01
1 1/2" meter
$ 63.35
$
64.62
2" meter
$ 99.53
$
101.52
3" meter
$ 183.98
$
187.66
4" meter
$ 304.59
$
310.68
6" meter
$ 605.85
$
617.97
8" meter
$ 967.52
$
986.87
10" meter
$ 1,389.57
$
1,417.36
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.94
$
0.96
Tier 2 (11-50 CCF)
$ 1.25
$
1.28
Tier 3 (>50 CCF)
$ 1.55
$
1.58
Multi -Family and Non -Residential (1)
All water usage
$ 1.12
$
1.14
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
RESOLUTION NO. 2022-45
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, on March 20, 2019, City Council approved a five-year rate plan in
accordance with the Proposition 218 rate setting process; and
WHEREAS, the approved five-year rate plan allows for a maximum increase of
3 percent. Staff has analyzed the water financial plan and recommends a 2 percent
increase; and
WHEREAS, the current water rate adjustment reflects a 2 percent increase.
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, 2022.
Dated: February 16, 2022
I hereby certify that Resolution No. 2022-45 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 16, 2022, by the following
vote:
AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
R
W -2,O
PAMELA M. FARRIS
Assistant City Clerk
2022-45
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
Current
(Jan.2021)
Proposed Rates
(Feb.2022)
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
3.000%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
City of Lodi
Current and Proposed Usage -Based Water Rates
Current Proposed Rates
(Jan. 2021) (Feb.2022)
Rate Increase --> 2.0%
USAGE -BASED RATES
$
Monthly Service Charge
1" meter
Single Family
33.34
Up to 3/4" meter
$
1" meter
$
1 1/2" meter
$
2" meter
$
Multi -Family and Non -Residential (1)
21.23 $ 21.65
33.34 $ 34.01
63.35 $ 64.62
99.53 $ 101.52
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
1.25
Tier 1 (0-10 CCF)
$
Tier 2 (11-50 CCF)
$
Tier 3 (>50 CCF)
$
Multi -Family and Non -Residential (1)
All water usage
$
Notes:
$ 21.65
$ 34.01
$ 64.62
$ 101.52
$ 187.66
$ 310.68
$ 617.97
$ 986.87
$ 1,417.36
0.94
$
0.96
1.25
$
1.28
1.55
$
1.58
1.12
$
1.14
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
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Water Rate Setting
• March 20, 2019 - Council adopted five-year
schedule of rate adjustments
• ENR Index or maximum 3%
• Proposition 218 Procedure affirmed schedule
• Updated financial model used to analyze proposed
rate changes
Recommendation
immendation
increase effective March 1St
• Proposition 218 — 3% maximum annual increase
• 2021 ENR Index Change — 8.4%
• Pre -approved increase by March 20, 2019 Council Action
0
Water Meter Program Status
vvaVer Meter Program status (Phases 1-8)
• 100% of single family meters installed (16,175)
94% billed a metered rate (157300)
874 remain on flat rates (Phase 8)
• 100% single family meters billed metered rates on
January 1, 2023
Multi -family residential customers
• Approximately 240 properties to be metered
• Further discussion /policy needed
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
0
2019
3.0
2.9
2.5
2020
3.0
1.3
0
2021
3.0
8.0
-5.3
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
Water Operating Balances
FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27
Ending Balance with 2022
Rate Increase
Operating Reserve (25%)
A Operating Reserve (50%)
Ending Balance without
2022 Rate Increase
R
1 Bedroom $31.88
2 Bedroom $38.29
3 Bedroom $45.89
4 Bedroom $55.14
5 Bedroom $66.13
6 Bedroom $79.37
7 Bedroom $95.17
$32.52
$39.06
$46.81
$56.24
$67.45
$80.96
$97.07
R
Fixed Service Charge (3/4 inch) $21.23
Metered Charges:
Tier 1 (Up to 7,480 gals/month) $0.00126/gal
Tier 2 (7,480-37,400 gals/month) $0.00167/gal
Tier 3 (>34,000 gals/month) $0.00207/gal
$21.65
$0.00128/gal
$0.00171 /gal
$0.00211 /gal
2% Increase Amounts
ate - 3 Bedroom Home
— �u1eptly
—March 1st
— Difference
$45.89 /Month
$46.81 /Month
$ 0.92 /Month
• Metered Rate — (1,500 CF / Month)
— Currently
— January 1st
— Difference
$36.88 /Month
$37.65 /Month
$ 0.77 /Month
R
City of Manteca
City of Galt
City of Lodi
City of Tracy
Citv of Stockton
$32.60
$35.84
$37.65
$41.00
$70.95
$81.32
Recommendation
Adopt Resolution Setting Pre -Approved Engineering
News Record Adjustment Index (2%) for Usage -
Based and Flat Water Rates for Residential,
Commercial, and Industrial Customers
tL
Dilpast-le
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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: NOTICE OF PUBLIC HEARING TO CONSIDER ADOPTION OF
RESOLUTION SETTING PRE -APPROVED ENGINEERING NEWS
RECORD ADJUSTMENT INDEX FOR USEAGE-BASED AND FLAT
WATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
CUSTOMERS
PUBLISH DATE: SATURDAY, JANUARY22, 2022
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: PAMELA M. FARRIS, ASSISTANT CITY CLERK
LNS ACCT. #5100152 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, JANUARY 20, 2022
ORDERED BY: JENNIFER CUSMIR
CITY CLERK
PAMELA M. FARRIS
ASSISTANT CITY CLERK
KAYLEE CLAYTON
ADMINISTRATIVE CLERK
Emailed to the Sentinel at legals@lodinews.corn at a'a!&!me) on } (pages)
forms\advins.doc
DECLARATION OF POSTING
NOTICE OF 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
On Thursday, January 20, 2022, in the City of Lodi, San Joaquin County, California, a
Notice of 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 attached Exhibit A
(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 January 20, 2022, at Lodi, California.
PAMELA M. FARRIS
ASSISTANT CITY CLERK
ORDERED BY:
PAMELA M. FARRIS
ASSISTANT CITY CLERK
` 4
KAYLE , LAYTON
ADMINISTRATIVE CLERK
\\cvcfilv0l\administration$\Administration\CLERK\Public Hearings\AFFADAVITS\DECPOSTPW 1. DOC
•. CITY OF LODI
Carnegie Forum
y , • 305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: February 16, 2022
Time: 7:00 p.m.
For information regarding this notice please contact:
Pamela M. Parris
Assistant City Clerk
Telephone: (209) 333-6702
NOTICE OF PusbC HEARING
EE
r
NOTICE IS HEREBY GIVEN that on Wednesday, February 16, 2022, 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, 211d
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:
Pamela M. Farris
Assistant City Clerk
Dated: January 19, 2022
Approved as to form:
Janice D. Magdich
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 1/13/22
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
Current
(Jan. 2021)
Proposed Rates
(Feb.2022)
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
3.000%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
City of Lodi
Current and Proposed Usage -Based Water Rates
Current
Proposed Rates
(Jan. 2021)
(Feb.2022)
Rate Increase -->
2.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$
21.23
$
21.65
1" meter
$
33.34
$
34.01
1 1/2" meter
$
63.35
$
64.62
2" meter
$
99.53
$
101,52
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$
21.23
$
21.65
1" meter
$
33.34
$
34.01
1 1/2" meter
$
63.35
$
64,62
2" meter
$
99.53
$
101.52
3" meter
$
183.98
$
187.66
4" meter
$
304.59
$
310.68
6" meter
$
605.85
$
617.97
8" meter
$
967.52
$
986.87
10" meter
$ 1,389.57
$
1,417.36
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$
0.94
$
0.96
Tier 2 (11-50 CCF)
$
1.25
$
1.28
Tier 3 (>50 CCF)
$
1,55
$
1.58
Multi -Family and Non -Residential (1)
All water usage
$
1.12
$
1.14
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
Signature:
Jan dich (Jan 0, 202210:06 PST)
Email: jmagdich@lodi.gov