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HomeMy WebLinkAboutAgenda Report - September 5, 2001 E-18 PHAGENDA TITLE: Set Public Hearing for October 3, 2001, to Consider Adopting Resolution Adjusting Water and Wastewater Rates MEETING DATE: September 5, 2001 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council set a public hearing for October 3, 2001, to consider adopting a resolution approving adjustments to water and wastewater rates as described in Tables A and B. BACKGROUND INFORMATION: Following various budget and other discussions about the need to significantly increase our replacement rate of old water and wastewater lines, plus two shirtsleeve sessions on the replacement program and its effect on rates, City staff is recommending that water and wastewater rates be adjusted. Staff has developed new rates to accomplish the following: v Maintain a minimum fund balance of 15% of operating expenses (including capital maintenance), plus an additional reserve amount for unforeseen capital expenses of $300,000 in water and $600,000 in wastewater. y Fund replacement of old pipes at an average rate of 1 % of the system per year. y Increase rates in increments rather than in one large jump. y Encourage conservation. r Reduce the in -lieu transfer to the General Fund to put all the utilities on the same percentage basis. The proposed rates are shown in the following tables. The flat rate increases are 25% and 35% in water and wastewater respectively. The first increase was originally slated for October 1, 2001; however, based on comments from the August 29, 2001 Town Hall Meeting, increases will become effective January 1, 2002 and July 1, 2002. Other miscellaneous charges are also increased by these percentages since they relate to the issue of pipe replacement. Base rates for metered water accounts remain unchanged and the water commodity rate is recommended to increase 34% in October and 32% in July. The higher percentage is in order to maintain the appropriate revenue split between metered and flat -rate accounts. This also puts Lodi's metered rates more in alignment with other agencies and will help encourage conservation. The reduction in the in -lieu rate to 12% would go into effect next fiscal year and the amount already transferred for the current year, based on the old rates and estimated revenue without the increase, is to remain the same. These rate increases are the first since 1995 for water and 1991 for wastewater. Lodi's rate histories are shown in Exhibits A and B. Exhibits C and D are recent surveys of rates in other areas. In 2002/03, staff expects to have a major wastewater rate analysis done as part of the financing for the treatment facility upgrade; thus, we are not predicting rates beyond 2002. We will review water rates at that same time. APPROVED: D xon Flynn -- City Manager water&ww rates 08/29/01 Set Public Hearing for October 3, 2001, to Consider Adopting Resolution Adjusting Water and Wastewater Rates September 5, 2001 Page 2 Table A: Water Utilit Residential Flat Rate (per month): Single Family Unit (one bedroom) (two bedrooms) (three bedrooms) (four bedrooms) (five bedrooms) (six bedrooms) (seven bedrooms) Multiple Family Unit (one bedroom) (two bedrooms) (three bedrooms) Commercial/Industrial Flat Rate Existing accounts only. New accounts are metered. Metered Rate plus monthly base charge Construction Water Charges: Table B: Wastewater Utility Disposal to Domestic System: Residential (per month) 1 Bedroom 2 Bedrooms (basis for 1 Sewage Service Unit) (SSU) 3 Bedrooms 4 Bedrooms 5 Bedrooms 6 Bedrooms 7 Bedrooms Moderate Strength (annual per SSU) (Most commercial & industrial unless "high strength High strength user: Flow (per MG, annual basis) BOD (per 1,000 lbs., annual basis) SS (per 1,000 lbs., annual basis) Grease Interceptor and Septic Holding Tank Waste within City Limits (per 1,000 gal.) Septic (only) Holding Tank Waste Outside City Limits (per 1,000 gal.) Disposal to Storm Drain System (per MG) FUNDING: None needed. attachments Present Rate October 2001 July 2002 $ 8.65 $ 10.81 $ 13.51 $ 10.38 $ 12.98 $ 16.22 $ 12.45 $ 15.56 $ 19.45 $ 14.95 $ 18.69 $ 23.36 $ 17.94 $ 22.43 $ 28.04 $ 21.53 $ 26.91 $ 33.64 $ 25.82 $ 32.28 $ 40.35 $ 7.42 $ 9.28 $ 11.60 $ 8.90 $ 11.13 $ 13.91 $ 10.68 $ 13.35 $ 16.69 $ 14.42 $ 19.47 + 20% for ea. addl. bedroom varies add 25% add 25% cc: Randy Hays, City Attorney Vicky McAthie, Finance Director Fran Forkas, Water/Wastewater Superintendent Roy Todd, Data Processing Manager water&ww rates $ 0.296 per 100 cu. ft. (approx. 40¢ per 1,000 gal.) $ 66.13 $ 89.28 $120.53 Richard C. Prima, Jr. Public Works Director $ 0.397 $ 0.524 $ 11.43 3/." meter No change $ 17.14 1" meter No change $ 22.85 1'/2" meter No change $ 28.58 2" meter No change $ 40.00 3" meter No change $ 51.43 4" meter No change $ 74.29 6" meter No change $ 97.16 8" meter No change $ 0.296 per 100 cu. ft. (appr. 400 per 1,000 gal.) $ 0.397 $ 0.524 $ 5.34 $ 7.21 $ 9.73 $ 7.12 $ 9.61 $ 12.97 $ 8.90 $ 12.02 $ 16.23 $ 10.68 $ 14.42 $ 19.47 $ 12.46 $ 16.82 $ 22.71 $ 14.24 $ 19.22 $ 25.95 $ 16.02 $ 21.63 $ 29.20 $ 85.42 $115.32 $155.68 $411.02 $554.88 $749.09 $201.14 $271.54 $366.58 $164.42 $221.97 $299.66 $ 62.96 $ 85.00 $114.75 $133.67 $180.45 $243.61 $ 66.13 $ 89.28 $120.53 Richard C. Prima, Jr. Public Works Director tOF� 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: SET PUBLIC HEARING FOR OCTOBER 3, 2001 TO CONSIDER ADOPTING RESOLUTION ADJUSTING WATER AND WASTEWATER RATES PUBLISH DATE(s): SATURDAY, SEPTEMBER 8, 2001 SATURDAY, SEPTEMBER 22, 2001 TEAR SHEETS WANTED: Three (3) please SEND AFFIDAVIT AND BILL TO: SUSAN BLACKSTON, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: SEPTEMBER 6, 2001 ORDERED BY: JENNIFER M. PERRIN DEPUTY CITY CLERK Faxed to the Sentinel at 369-1084 at (time) on (date) (pages) Sharon Phoned to confirm receipt of all pages at (time) Jac Jen (initials) farms\advins.doc • CITY OF LODI NOTICE OF PUBLIC HEARING Date: October 3, 2001 Carnegie Forum 305 West Pine Street, Lodi Time: 7:00 p.m. For information regarding this notice please contact: Susan J. Blackston City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, October 3, 2001 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) Adopting Resolution Adjusting Water and Wastewater Rates Information regarding this item may be obtained in the office of the Public Works Department Director, 221 West Pine Street, Lodi, California. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk 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, 221 West Pine Street, at or prior to the Public Hearing. By Order of the Lodi City Council: Susan J. Blackston City Clerk Dated: September 6, 2001 Approved as to form: �� Randall A. Hays City Attorney J1Cr YCLRK%FORMSWotfeespw.doc 9!5!01 (1) On Thursday, September 6, 2001 in the City of Lodi, San Joaquin County, California, a copy of Notice of Public Hearing of the City Council of the City of Lodi to consider Adopting Resolution Adjusting Water and Wastewater Rates (attached hereto, marked Exhibit "A") was posted at the following four locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum I declare under penalty of perjury that the foregoing is true and correct. Executed on September 6, 2001, at Lodi, California. ORDERED BY: SUSAN J. BLACKSTON CITY CLERK Jennifer M. Perrin Deputy City Clerk famis\aecpost.doc CITY OF LODI NOTICE OF PUBLIC HEARING Date: October 3, 2001 Carnegie Forum 305 West Pine Street, Lodi Time: 7:00 p.m. For information regarding this notice please contact: Susan J. Blackston City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING MON NOTICE IS HEREBY GIVEN that on Wednesday, October 3, 2001 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) Adopting Resolution Adjusting Water and Wastewater Rates Information regarding this item may be obtained in the office of the Public Works Department Director, 221 West Pine Street, Lodi, California. All interested persons are invited to present their views and comments on this matter, Written statements may be filed with the City Clerk 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, 221 West Pine Street, at or prior to the Public Hearing. By Order of the Lodi City Council: Susan J. Blackston City Clerk Dated: September 6, 2001 Approved as to form: Randall A. Hays City Attorney JACITYCLRMFORMS1Notfeespw.doc 9/5/01 Attached are the exhibits for Item E-18. These are the handouts that were distributed at the recent Town Hall Meeting. bCi ti y ba City of Lodi Crater Rate Survey „tiy 2001; Total for City Base Charge Water Charge typical Comments residence Davis Metered $8.71 Imo. $0.491100 cu. ft. $18.54 /m0. Water charge increases to So,681100 cu ft. for amount over winter use "base line". Escalon Units (agency affected) Water Use: 15,000 gallons/month ( 2,005 cu. ft.) Parcel Area: Metered $11.291m0. $0,8185 11 000 gal. $23.621mo. $0.900411,000 gals. for 50,000-80,000 gal., greater than 80,000 gal. Lathrop $17.781mo. $0.61221100 cu. ft. $17,781mo. $0.990411000 gal. Metered $10.24 /mo. $1.130011000 gal. $27,191mo. (3,500 cu. Ft. for IN"). Madera $0.84521100 cu. ft. _ Flat Rate $9.72 Imo. nla $9.72 Imo. For 1st 5,000 sq. ft, lot. Increases $0.13 per additional 100 sq. ft. Metered $12.98 lmo. $0.3711000 gal. $5.55 Imo. No base charge. Manteca Metered $9.201mo. $0.431100 cu. ft, $20,17' Imo. Water charge is $0.571100 cu. ft. for amount over 2,000 cu. ft. User tax of Metered $9.801rno. $0.401100 cu. ft. $14.51' Imo. $2,35 added to all accounts. Merced Units (agency affected) Water Use: 15,000 gallons/month ( 2,005 cu. ft.) Parcel Area: Flat Rate $7.17 Imo. nla $7.17 Imo. $7.17 for first 10.000 SF, per table up to $39.90 for 46,Oo0 SF Metered $17.781mo. $0.5041100 cu. ft. $17,781mo. Base charge includes water allowance up to amount under quantity rate (3,500 cu. Ft. for IN"). Ripon _ Flat Rate $17.861mo. nla $17.86 Imo. Lot size up to 10,000 SF. Metered $12.98 lmo. $0.9001100 cu. ft. $18.431mo. Base charge includes first 1400 cu. Ft. Roseville Flat Rate $12.80 Imo. nla $13.44' Imo. For single family lot between 4,901 and 8,900 Sir; per table for other sizes Metered $9.801rno. $0.401100 cu. ft. $14.51' Imo. First 1,000 cu. ft. in base charge; water charge increases to $0.431100 cu. ft. for 5,000-15,000; $0.461100 cu. ft. for 15,000-25,000; $0.491100 cu. ft. for .25,000 cu, ft. plus 5% user tax. Stockton (City) Metered $13.79 Imo. $0.6651100 cu. ft. $29.30' Imo. $0.5661100 cu. ft. for amount over 30,000 cu. ft. plus 8% user tax. Tracy Metered $9.85 Imo. $0.851100 cu. ft. $27.61 Imo. Water charge increases to $1.20 over 1,200 winter/1,800 summer cu. ft., $1.40 over 1,900w12,900s cu. ft., $1.50 over 19,000wl28,700s cu. ft. Turlock Flat Rate $13.45 Imo. nla $13.45 Imo. $7.05 for 0 to 5 rooms, $7.90 for 6-8, $8.70 over 8 plus charge based on parcel area ($5.55 up to 5,500 SF, $0.85 for each addl 2000 SF) Metered $9.45 Imo. $0.4711000 gal. $16.50 Imo. Water charge decreases to $0.40 over 50,000 gallons, $0.17 over 150,000 gallons Vacaville Metered $16.49 Imo. $0.69 1100 cu. ft. $32.66 Imo. Water charge increases to $0.98 over 1,200 cu. ft. 15% discount for senior citizens on base and consumption charge. Woodland Fiat Rate $7.45 Imo. nla $8.79' Imo. For single family lot 5,000 to 10,000 SF; $6.10 under 5,000 SF, $9.10 over 10,000 SF (18% user tax reviewed every other year.) Metered $3.90 Imo. $0.301100 cu. ft. $11.70" Imo. Yuba City Flat mate $22.45 Imo. n1a $22.45 Imo. Metered $12,35 Imo. $0.7751100 cu, ft. $15.49 /mo. Includes 1,600 cu. ft. minimum quantity Average Flat Rate $11,36 Imo. nla $11.61 Imo. Metered $11,071mo. $0.553 /100 cu. ft. $20.051mo. rates per 1000 gal. adjusted to 100 cu. ft. Lodi Flat Rate $12.451mo. n1a $12.45 /mo. ranges from $8.65 for 1 bedroom to $25.84 for 7 br's. Metered $11.43 Imo. $0.296 /100 cu. ft. $17.371mo. Base charge does not include any water allowance. Typical Residence Criteria: Units (agency affected) Water Use: 15,000 gallons/month ( 2,005 cu. ft.) Parcel Area: 5,000 square feet (Madera, Merced, Ripon, Roseville, Woodland) Meter Size: %" size of service pipe is typically v minimum, meter is usually smaller Rooms: 6 number (Turlock) Bedrooms: 3 number (Lodi) user tax added RATECOM P -9•o 1.xlsRa les City of Lodi Water Rate Survey Survey Cities - 2000 System Demographics EX IBIT D July 2001 City Population Served # of customers: Flat Rat % Metered % Production Million Gals. Source Gallons/ capita/dal. Davis 61,500 - 0% 15,300 100% 4,500 Wells 200 Escalon 6,000 - 0% 1,940 100% 448 Wells 205 Lathrop 11,000 - 0% 2,894 100% 820 Wells 204 Madera 43,207 9,404 97% 303 3% 3,856 Wells 245 Manteca 51,000 - 0% 13,001 100% 4,108 Wells 221 Merced 63,000 11,500 77% 3,500 23% 5,430 Wells 236 Ripon 10,100 2,897 91% 276 9% 1,260 Wells 342 Roseville 86,000 27,000 66% 14,000* 44% 8,356 Surface 266 Stockton 110,000 - 0% 34,602 100% 8,823 Welfs(39%) Surface(61%) 220 Tracy 58,900 - 0% 17,184 100% 4,680 Wells(45%) Surface(55%) 218 Turlock 57,000 13,364 92% 1,116 8% 7,148 Wells 344 Vacaville 96,840 - 0% 24,448 100% 6,500 Wells(37%) Surface(63%) 184 Woodland 50,300 11,000 87% 1,700 13% 5,600 Wells 305 Yuba City 35,553 457 5% 8,406 95% 3,567 Surface 275 Average 52,886 4,650 247 Avg. GPCD (metered): 216 Avg. GPCD (fiat): 290 Lodi 57,935 15,980 1,051 5,449 1 Wells 258 Lodi without 3 large industrial customers: 4,995 236 . Residential meters are installed but are not being read. RATECOMP-9-01.xlsDemographics