HomeMy WebLinkAboutAgenda Report - June 15, 2022 G-01 PHCITY OF
�■Z010zt�
ti
CALIFORNIA
AGENDA ITEM Gr -1
COUNCIL COMMUNICATION
AGENDA TITLE: Public Hearing to Consider Adopting Resolution Setting Pre -Approved Engineering News
Record Adjustment Index for Wastewater Rates for Residential, Commercial, and
Industrial Customers
MEETING DATE: June 15, 2022
PREPARED BY: Public Works Director
RECOMMENDED 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 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 $32 million over the next five years without
borrowing.
APPROVED: Steve SChwabauer
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\UTILITY RATES\W_WW\2022 W—WW Rate Increase\CC PH—WW Rates docx 5/25/2022
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%
0%
July 2022
3.0%
8.9%
3%
At present, the wastewater operating fund balance exceeds target operating reserves. This surplus will be
needed to fund wastewater expenditures amounting to over $32 million over the next five years without
borrowing.
APPROVED: Steve SChwabauer
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\UTILITY RATES\W_WW\2022 W—WW Rate Increase\CC PH—WW Rates docx 5/25/2022
Public Hearing to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Wastewater Rates for
Residential, Commercial, and Industrial Customers
June 15, 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
ct_��
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
$
29.57
2 Bedroom
$
38.27
$
39.42
3 Bedroom
$
47.84
$
49.28
4 Bedroom
$
57.41
$
59.13
5 Bedroom
$
66.98
$
68.99
6 Bedroom
$
76.55
$
78.84
7 Bedroom
$
86.12
$
88.70
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.
RESOLUTION NO. 2022-161
A RESOLUTION OF THE LODI CITY COUNCIL SETTING
PRE -APPROVED ENGINEERING NEWS RECORD
ADJUSTMENT INDEX FOR 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 Index, 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, Inc., of Sacramento; and
WHEREAS, the current water rate adjustment reflects a 3 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 wastewater
rates for residential, commercial and industrial customers as outlined on Exhibit A with the
effective date of the increase to be July 1, 2022.
Dated: June 15, 2022
I hereby certify that Resolution No. 2022-161 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 15, 2022, by the following vote:
AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, and Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
Qty- 4102Ld
OLIVIA NASHED
City Clerk
2022-161
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
$
29.57
2 Bedroom
$
38.27
$
39.42
3 Bedroom
$
47.84
$
49.28
4 Bedroom
$
57.41
$
59.13
5 Bedroom
$
66.98
$
68.99
6 Bedroom
$
76.55
$
78.84
7 Bedroom
$
86.12
$
88.70
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.
LSO
+aarrraarar!_aa+.a art r fry
•arra.. raa ._ar+ +. r+ •� /
19
Background
• Last rate increase i n July 1, 2019
• 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
Recommendation
j,j/o increase in i -Y 2022/23 followed by annual ENR
Index change increases (or maximum 3% through
December 31, 2023)
Proposition 218 — 3% maximum annual increase
2022 ENR Index Change — 8.9%
Pre -approved increase by March 20, 2019 Council Action
r
,3--. -- r:'.. I
2017
3.0%
4.1%
0%
2018
3.0%
2.7%
0%
2019
3.0%
2.9%
2.9%
2020
3.0%
1.5%
0%
2021
3.0%
3.1%
0%
r r+tri;
l'
n ..Wastewater Comparative Rates
Current
July 2022
Increase
Flat Rates
2 Bedroom
$38.27
$39.42
$1.15
3 Bedroom
$47.84
$49.28
$1.44
4 Bedroom
$57.41
$59.13
$1.72
Usage -Based Rates
Monthly Usage Charge ($/CCF)
$2.97
$3.06
$0.09
3/4" Meter Monthly Charge
$26.14
$26.92
$0.78
Typical bill @ 9 CCF
$52.87
$54.46
$1.59
R
,f
w
CIaION1964410
City of Tracy*
$35.20
City of Manteca*
$43.30
City of Stockton*
$52.53
City of Lodi**
$54.46
City of Lathrop*
$75.00
City of Galt*
$78.28
ff
FY 21-22
FY 22-23
FY 23-24
FY 24-25
FY 25-26
Project Planning
$25,000
$25,000
$25,000
$25,000
$25,000
MUS PW Building Roof
$80,000
MUS PW Building Remodel
$150,000
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
Sewer Lift Station Wet Well Rehab
$250,000
Storm Drain Trash Handling
$350,000
$350,000
$350,000
$350,000
Laurel Storm Relocation
$100,000
Kofu Storm Water Pump Rehab
$200,000
Salas Storm Water Pump Rehab
$200,000
Henery Glaves Storm Water Pump Rehab
$200,000
Peterson Storm Water Pump Rehab
$200,000
Cluff Storm Water Pump Rehab
$200,000
Vehicles /Equipment
$75,000
$650,000
$7500
$75,000
$7500
Misc Projects
$100,000
$100,000
$100,000
trl
r a r'r l
Planned
Capital
Projects
FY 21-22
FY 22-23
FY 23-24
FY 24-25
FY 25-26
Irrigation Improvements
$750,000
Digester #3 Mixing Impry
$500,000
$1,000,000
Digester #4 Lid Rehab
$100,000
Pump & Equipment Upgrades
$320,000
Electrical Upgrades/SCADA Construction
$1,000,000
$7,000,000
$5,500,000
Mosquito Pond (2020 Well Rehab project)
$112,000
Dredge Pond 1 and EQ Pond 1
$200,000
Cloth Filter Media Replacement
$30,000
$30,000
$30,000
$30,000
$30,000
Primary Chain Flights
$40,000
$40,000
$4000
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
$45000
Primary WW Treatment Rehab
$500,000
Aeration Difusser Replacement
$3,000,000
Pond Gates
$15,000
Primary Skimmers
$20,000
DWP-H2 Replacement
$15,000
$15,000
Fan Press Replacement (Solids Handling)
$1,000,000
$2,500,000
4
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 July 1, 2022
tL
Dilpast-le
AM
EOFF
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
Zn-� -�
PAMELA M. FARRIS
ASSISTANT CITY CLERK
Emailed to the Sentinel at legals@lodinews.com at $
forms\advins.doc
KAYLEE CLAYTON
ADMINISTRATIVE CLERK
on :,( ['--r/oj,q,*) (pages)
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
KAYLr=EOCLAYTON
ADMINISTRATIVE CLERK
\\cvcfi1v01\administration$\Administration\CLERK\Agenda\City Council\Public
Hearings\AFFADAV ITS\DECPOST 1.DOC
•. CITY OF LODI
�'.�:` Carnegie Forum
..45.ry
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:
httpsJlus06web.7_001n. us/1/82522868353?owd=cFh 1 S2VWU mZH R,Q12CbnnZyTitHZ05kQ'1'09
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: 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.
CLERMPUBHEAR\NOTICESWoWD Wastewater 5/12/22