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Home My WebLink AboutAgenda Report - May 18, 2022 C-21 PHCITY OF ,aZ �. W!0 t r CALIFORNIA AGENDA ITEM C.,21 COUNCIL COMMUNICATION AGENDA TITLE: Set Public Hearing for June 15, 2022, to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Wastewater Rates for Residential, Commercial, and Industrial Customers MEETING DATE: May 18, 2022 PREPARED BY: Public Works Director RECOMMENDED ACTION Set public hearing for June 15, 2022, 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 wastewater 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 wastewater utility, 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. In fact, staff has not recommended a wastewater rate increase since July 1, 2019. At present, the wastewater operating fund balance exceeds target operating reserves. This surplus will be needed to fund wastewater expenditures amounting to over $32 million over the next five years without borrowing. APPROVED: Steve SCI wabauer Stephen Schwabauer, City Manager \\cvcfilv02\pubwks$\WP\UTILITY RATES\W .WW\2022 W WW Rate Increase\CCSetPH_WW Rates docx 5/4/2022 Cap ENR Index Approved/ Recommended July 2017 3.0% 4.2% 0% July 2018 3.0% 2.7% 0% July 2019 3.0% 2.9% 2.9% July 2020 3.0% 1.5% 0% July 2021 3.0% 3.1% j 0% July 2022 3.0% 8.9% 13% At present, the wastewater operating fund balance exceeds target operating reserves. This surplus will be needed to fund wastewater expenditures amounting to over $32 million over the next five years without borrowing. APPROVED: Steve SCI wabauer Stephen Schwabauer, City Manager \\cvcfilv02\pubwks$\WP\UTILITY RATES\W .WW\2022 W WW Rate Increase\CCSetPH_WW Rates docx 5/4/2022 Set Public Hearing for June 15, 2022, to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Wastewater Rates for Residential, Commercial, and Industrial Customers May 18, 2022 Page 2 The recommended rate adjustment for this next year (Exhibit A) reflect a recommended increase of 3 percent. FISCAL IMPACT: Increased revenues are required to properly fund capital maintenance, to keep up with cost of service increases, and State mandated costs. FUNDING AVAILABLE: Not applicable a� Charles E. Swimley, Jr. Public Works Director CES/RAY/cd Attachment Exhibit A City of Lodi -- Wastewater Utility Current and Proposed Wastewater Rates Current July 2022 1 Percent Increase 3.0 Flat Rates ($/month) 1 Bedroom $ 28.71 $ 29.56 2 Bedroom $ 38.27 $ 39.42 3 Bedroom $ 47.84 $ 49.27 4 Bedroom $ 57.41 $ 59.13 5 Bedroom $ 66.98 $ 68.98 6 Bedroom $ 76.55 $ 78.84 7 Bedroom $ 86.12 $ 88.69 Mobile Homes Any Size $ 28.71 $ 29.57 Schools Students per SSU $ 37.23 $ 38.35 Usage -Based Rates (1) Monthly Usage Charge ($/CCF) (1) $ 2.97 $ 3.06 3/4" Meter Charge per month $ 26.14 $ 26.92 1" Meter Charge per month $ 42.11 $ 43.37 1 1/2" Meter Charge per month $ 81.35 $ 83.79 2" Meter Charge per month $ 127.94 $ 131.78 3" Meter Charge per month $ 239.03 $ 246.20 4" Meter Charge per month $ 396.70 $ 408.60 6" Meter Charge per month $ 790.56 $ 814.28 8" Meter Charge per month $ 1,263.37 $ 1,301.27 Notes: (1) Winter water usage determined as average monthly usage from December through February. 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 ADOPTING A RESOLUTION SETTING PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS PUBLISH DATE: SATURDAY, MAY 21, 2022 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: OLIVIA NASHED, CITY CLERK LNS ACCT. #5100152 City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, MAY 19, 2022 ORDERED BY: OLIVIA NASHED CITY CLERK PAMELA M. FARRIS ASSISTANT CITY CLERK KAYLEE CLAYTON ADMINISTRATIVE CLERK Emailed to the Sentinel at legals@lodinews.com at ' [ 1me) on ) (pages) forms\advins.doc DECLARATION OF POSTING NOTICE OF PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION SETTING PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR WASTEWATER RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS On Thursday, May 19, 2022, in the City of Lodi, San Joaquin County, California, a copy of a Notice of Public Hearing to consider adopting a resolution setting pre -approved Engineering News Record adjustment index for wastewater rates for residential, commercial, and industrial customers (attached hereto, marked 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 May 19, 2022, at Lodi, California. PAMELA M. FARRIS ASSISTANT CITY CLERK ORDERED BY: OLIVIA NASHED CITY CLERK AAkl�-_ � ..�__Cik— K LAYTON ADMINISTRATIVE CLERK \\cvcftiv0l\administration$\Administration\CLERK\Agenda\City Council\Public Hearings\AFFADAVITS\DECPO ST 1.DOC CITY OF LODI " Carnegie Forum - 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: June 15, 2022 Time: 7:00 p.m. For information regarding this notice please contact: Olivia Nashed City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, June 15, 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 item: a) adopting a resolution setting pre -approved Engineering News Record adjustment index for wastewater rates for residential, commercial, and industrial customers. 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 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. Comments may be made in person or via the following link: https_l/us06web.zoom . us/,0182522868353?pwd=cFh1 S2VWUmZHROpCbmZyTitHZ05kQT09 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, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: Olivia Nashed City Clerk Dated: May 18, 2022 Approv. ,as to form: ��.--� Ja ice D,_I Iagdich 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. CLERMPUBHEARINOTICESWoWD Wastewater 5/12/22