HomeMy WebLinkAboutAgenda Report - April 27, 2004 C-04 SMAGENDA ITEM C .0 it
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Urgency Ordinance Repealing and Reenacting LMC §13.04.130 and
Establishing Low Income Discounts for Water, Sewer and Refuse Services
and Adopt Resolution Establishing Discounts
MEETING DATE: April 27, 2004
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council adopt an urgency ordinance repealing and
reenacting LMC §13.04.130 establishing low income discounts for
water, sewer and refuse services and adopt a resolution
establishing discounts.
BACKGROUND INFORMATION: In discussion on water and wastewater rates, the subject of
providing a meaningful discount for low income residents was
brought up. Staff is recommending a change in the City's current
discount program as described below.
Currently, the Lodi Municipal Code contains the following section:
13.04.130 Low income adjustments.
The rates for residential water, sewer and refuse collection service as they now exist or may hereafter
be modified under this chapter, shall be reduced by ten percent (exclusive of surcharges, if any) for
those residential accounts in the names of person otherwise eligible for Supplemental Security
Income (SSI), or State Supplement Payments (SSP), as determined by the Social Security
Administration, which shall have sole discretion in determining such eligibility. Proof of eligibility may
be required by the city to qualify for the rate adjustments provided herein. (Ord. 1445 § 1, 1989)
In addition, the City has various electric and refuse programs, as summarized on Exhibit A. The refuse
discounts actually are greater than 10% due to the way past rate increases were handled.
There are about 1,300 customers receiving electric discounts, almost 900 receiving refuse discounts and
about 300 receiving water/wastewater discounts. The actual number of customers on these discount
programs varies due to both different eligibility criteria and the fact that not all customers pay each of
these bills. For example, a landlord might pay water and sewer and the tenant pays refuse and electric.
This recommendation is based on the fundamental concept that the City should have one set of eligibility
criteria for its discount programs, although the amount of the discount may vary among the utilities; and,
they would be set by resolution. This will allow one administrative process for approval rather than two or
three.
APPROVED:
CRateDiswunts_SpecialMeeting.dDo
H. Dixon Flynn, City Manager
4/22/2004
Introduce Urgency Ordinance Repealing and Reenacting LMC §13.04.130 and Establishing Low Income
Discounts for Water, Sewer and Refuse Services and Adopt Resolution Establishing Discounts
April 27, 2004
Page 2
The text of the proposed ordinance is as follows:
13,04.130 Low income adjustments.
The rates for residential water, sewer and refuse collection service as they now exist or may
hereafter be modified under this chapter, shall be reduced as established by resolution for those
residential accounts in the names of persons eligible for applicable electric service discounts as
provided in this Title. Proof of eligibility may be required by the city to qualify for the rate
adjustments provided herein.
Staff suggests that the Council consider adopting ordinance as an urgency measure so that the discounts
can be effective simultaneously with the rate increases. This will be much better for the public and
certainly save staff time and expense in either responding to questions or processing refunds.
A draft of the implementing resolution is also attached, with the actual discounts left blank pending
Council action.
FUNDING: Not applicable.
oa
Richard C. Prima, J .
Public Works Director
RCPlpmf
Attachments
cc: Alan Vallow, Electric Utility Director
Vicky McAthie, Finance Director
CRaleDiscounts_S peda)Meettng.doc 4121/2D04
Exhibit A
Refuse Rate Reduction Program
Residential customers may apply for a reduction in their rate due to personal economic
hardship. The rate reduction is actually a set rate depending on the size of the cart.
20 -gallon carts are currently at a rate of $8.24 and the 38 -gallon cart at $10.30. The
criteria for this program is proof of income that meets the following guidelines:
One person in household $12,000/year
Each additional person add $2,000/year
Once application is approved there is no follow-up procedure to verify continued
eligibility.
SHARE Program
This program allows residential customers to apply for a discount of 20% on their
monthly utility bill. The criteria for this program is proof of income that meets the
following guidelines:
Number of Persons in Household Maximum Annual Household Income
1-2 $22,000
3 $25,900
4 $31,100
Each additional member $5,200
Once the application is approved, it is up to the applicant to notify the
Finance Department within 30 days of becoming ineligible for the program.
SSI & SSP Recipient Discount Program
If a resident receives SSI or SSP, they may be eligible for a 10% discount on Water,
Sewer and Refuse rates. Once the application is filled out, the Finance Department will
send the form to the Social Security Administration to verify eligibility. Once approved,
there is no follow-up procedure to verify continued eligibility.
Senior Fixed Income Program
This program allows for residential customers over the age of 62 with a maximum
household income of $45,000 to apply for a 5% discount on their monthly electric bill.
ORDINANCE NO.
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LODI AMENDING CHAPTER 13.04 OF THE LODI MUNICIPAL CODE BY
REPEALING AND REENACTING SECTION 13.04.130, RELATING TO LOW
INCOME ADJUSTMENTS
----------------------------------------------------------------
----------------------------------------------------------------
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS:
SECTION 1. Chapter 13.04 — "Service Generally" - is hereby amended by repealing and
reenacting §13.04.130, relating to Low Income Adjustments to read as follows:
13.04.130 Low Income Adjustments.
The rates for residential water, sewer and refuse collection service as
they now exist or may hereafter be modified under this chapter, shall be
reduced as established by resolution for those residential accounts in the
names of persons eligible for applicable electric service discounts as
provided in this Title. Proof of eligibility may be required by the city to
qualify for the rate adjustments provided herein.
SECTION 2. This ordinance is adopted as an urgency ordinance under Government
Code §36934, based on health, safety and welfare considerations arising from: (1) the
City of Lodi's consideration of increased utility rates if adopted take effect prior to the
City's ability to institute the low income discounts considered herein; (2) If the increases
are adopted prior to institution of the discounts, Lodi's low income community may suffer
financial hardship or inability to afford critical health and sanitary services.
SECTION 3. All ordinances and parts of ordinances in conflict herewith are repealed
insofar as such conflict may exist.
SECTION 4. This ordinance shall be published one time in the "Lodi News Sentinel", a
daily newspaper of general circulation printed and published in the City of Lodi and shall
be in force and take effect immediately after its passage and approval.
Approved this day of April, 2004
LARRY D. HANSEN
Mayor
Attest:
SUSAN J. BLACKSTON
City Clerk
State of California
County of San Joaquin, ss.
I, Susan J. Blackston, City Clerk of the City of Lodi, do hereby certify that Ordinance No.
was adopted as an urgency ordinance at a special meeting of the City Council of
the City of Lodi held April 27, 2004 and was thereafter passed, adopted and ordered to
print by the following vote:
Ayes: Council Members -
Noes; Council Members -
Absent: Council Members -
Abstain: Council Members -
I further certify that Ordinance No. was approved and signed by the Mayor on the
date of its passage and the same has been published pursuant to law.
SUSAN J. BLACKSTON
City Clerk
Approved as to Form:
D. STEPHEN SCHWABAUER
Interim City Attorney
FILE COPY
.01 MEMORANDUM, City of Lodi, Public Works Department
To: City Council RECEIVED
H. Dixon Flynn, City Manager
From: Richard Prima, Public Works Directo APP 1 9 2004
rK
Date: AprilCity of Lodi
19, 2004 city C.i odi
Subject: Low Income Discounts on Utility Rates
The planned April 27, 2004 Special City Council meeting is mainly being held to
consider the proposed increases in water, wastewater and solid waste rates. In
addition, there will be a number of items related to the White Slough Wastewater
Treatment Facility financing and project.
The agenda will also include the low-income discount program. At a previous meeting
when this item was discussed, Council directed that it be brought back in conjunction
with the rate increase.
The previously scheduled shirtsleeve session for April 20, 2004 was to include the
attached rate sheets showing discounted rates at various discount percentages, which
was also requested by the Council. Since that meeting was rescheduled, we are
providing the information as part of this memo.
Please note that the solid waste rates have in the past, included a special rate category
for low income. Apparently in previous years, this rate was not increased along with
other rate increases and the resulting reduction is significantly higher than 10%. Staff is
proposing to eliminate this separate rate category and rely on whatever discount the
Council deems appropriate. Note that we could have different low income discount
rates for each of these three services.
RCP/rcp
Attachment
Cc: Vicky McAthie, Finance Director
Alan Vallow, Electric Utility Director
Rebecca Arieda, PW Management Analyist
Luana Pinasco, Central Valley Waste Systems
Utility Disc. DOC
Table A. Water Utility
$11.43
3/4" meter
$17.14
present Rate
May -O
Residential Flat Rate (per month):
$28.58
2" meter
Single Family knit (one bedroom)
$13.51
$18.24
(two bedrooms)
$16.22
$21.90
(three bedrooms)
$19.45
$26.26
(four bedrooms)
$23.36
$31.54
(five bedrooms)
$28.04
$37.85
(six bedrooms)
$33.64
$45.41
(seven bedrooms)
$40.35
$54.47
Multiple Family Unit (one bedroom)
$11.60
$15.66
(two bedrooms)
$13.91
$18.78
(three bedrooms)
$16.69
$22.53
$ 34.06
$
+ 20% for ea. addI bedroom
Commercial/Industrial Flat Rate vanes add:
(Existing accounts only. New aecounts are metered.)
Metered Rate $0.524 per 100 cu. ft.
plus monthly base charge:
Construction Water Charges:
approx. $0.70 per 1,000 gallons
$11.43
3/4" meter
$17.14
1" meter
$22.85
1%" meter
$28.58
2" meter
$40.00
3" meter
$51.43
4" meter
$74.29
6" meter
$97.16
8" meter
n/a
10" meter
$0.524 per 100 cu. ft.
35%
$0.707
approx. $0.91 per 1,000 gattons
$15.43
$23.14
$30.85
$38.58
$54.00
$69.43
$100.29
$131.17
$162.04
$0.707
Discount Rates 911 % Reduction Shown
10%
20%
15 IX,
30%
$ 16.42
$
14.59
$ 13.68
$
12.77
$ 19.71
$
17.52
$ 16.43
$
15.33
$ 23.63
$
21.01
$ 19.70
$
18.38
$ 28.39
$
25.23
$ 23.66
$
22.08
$ 34.07
$
30.28
$ 28.39
$
26.50
$ 40,87
$
36.33
$ 34.06
$
31.79
$ 49.02
$
43.58
$ 40.85
$
38.13
$ 14.09
$
12.53
$ 11.75
$
10.96
$ 16.90
$
15.02
$ 14,09
$
13.15
$ 20.28
$
18.02
$ 16.90
$
15.77
Note: Charges are total, including infrastructure repla cement charge, which will remain the same and increase will be shown in the service charge.
4/19/2004 2004Rates4-19-04.xis
Table B: Wastewater Utility
Disposal to Industrial System) Rates adjusted annually per LMC §13,12,20
Note: Charges are total, including infrastructure replacement charge, which will remain the same and increase will be shown in the service charge.
4/19/2004 2004Rates4-19-04.xis
Present Rate
May -04
Jul -05
July
2005 Discount Ratel
0 % Reduction Shawn
Disposal to Domestic System.,
10%
2
2S°1a%
30%
Residential (per month) 1 Bedroom
$
9.73
$
12.16
$ 15.20
$
13.68
$
12.16
$
11.40
$
10.64
2 Bedrooms (basis for 1 Sewage Service Unit) (SSU)
$
12.97
$
16.21
$ 20.26
$
16.23
$
16.21
$
15.20
$
14.18
3 Bedrooms
$
16.21
$
20.27
$ 25.34
$
22.81
$
20.27
$
19.01
$
17.74
4 Bedrooms
$
19.46
$
24.33
$ 30.41
$
27.37
$
24.33
$
22.81
$
21.29
5 Bedrooms
$
22.70
$
28.38
$ 35.48
$
31.93
$
28.38
$
26.61
$
24.84
6 Bedrooms
$
25.94
$
32.43
$ 40.54
$
36.49
$
32.43
$
30.41
$
28.38
7 Bedrooms
$
29.18
$
36.48
$ 45.60
$
41.04
$
36.48
$
34.20
$
31.92
Moderate Strength (annual per SSU)
$
155.68
$
194.60
$ 243.25
(Most commercial 8, industrial unless "high strength"
High strength user:
Flow (per MG, annual basis)
$
749.09
$
936.36
$ 1,170.45
BOD (per 1,000 lbs., annual basis)
$
366.58
$
458.23
$ 572.79
SS (per 1,000 lbs., annual basis)
$
299.66
$
374.58
$ 468.23
Grease Interceptor and Septic Holding Tank Waste within City Limits
S
114.75
$
143.44
$ 179.30
(per 1,000 gal.)
Septic (only) Bolding Tank Waste Outside City Limits (per 1,000 gal.)
$
243.61
$
304.51
$ 380.64
Disposal to Storm Drain System (per MG)
$
120.53
$
150.66
$ 188.33
Disposal to Industrial System) Rates adjusted annually per LMC §13,12,20
Note: Charges are total, including infrastructure replacement charge, which will remain the same and increase will be shown in the service charge.
4/19/2004 2004Rates4-19-04.xis
Table C_1, _Solid Waste (Refuse)
Present Rate Discount „Rates ®, % Reduction Sh2wh
Per Month May -04 10% 20% 25% 30%
1. 38 GALLON REFUSE CART 1X PER WEEK"
1 Refuse Cart
$19.12
$
19.64
$
17.68
$
15.71
$
14.73
$
13.75
2 Refuse Carts
$47.79
$
49.08
$
44.17
$
39.26
$
36.81
$
34.36
3 Refuse Carts
$76.46
$
78.52
$
70.67
$
62.82
$
58.89
$
54.96
4 Refuse Carts
$105.13
$
107.96
$
97.16
$
86.37
$
80.97
$
75.57
2. 64 GALLON REFUSE CART 1X PER WEEK**
1 Refuse Cart
$28.75
$
29.52
$
26.57
$
23.62
$
22.14
$
20.66
2 Refuse Carts
$71.88
$
73.82
$
66.44
$
59.06
$
55.37
$
51.67
3 Refuse Carts
$114.99
$
118.09
$
106.28
$
94.47
$
88.57
$
82.66
3. 95 GALLON WASTE CART 1X PER WEEK**
I Refuse Cart $62.71 $ 64.40
2 Refuse Carts $125.43 $ 128.81
3 Refuse Carts $188.14 $ 193.21
4. DUPLEX AND MULTI -FAMILY, AND MOBILE HOMES
Monthly rate is reduced from above base rates ($1.00) ($1.00)
5. LOW VOLUME USER 1X PER WEEK
One (1) - 20 Gallon Low Volume Refuse Cart
6. LOW INCOME USER JX PER WEEK
20 Gallon Refuse Cart
38 Gallon Refuse Cart
$13.01 $ 13.36
$ 57.96 $ 51.52 $ 48.30 $ 45.08
$ 115.93 $ 103.05 $ 96.61 $ 90.17
$ 173.89 $ 154.57 $ 144.91 $ 135.25
($1.00) ($1.00) ($1.00) ($1.00)
$ 12.02 $ 10.69 $ 10.02 $ 9.35
Delete Rate Category
$8.24 nla 37% existing rate discount
$10.30 nla 46% existing rate discount
7. ADDITIONAL 64 GALLON RECYCLING CARTS
Second and Third Recycling Cart No Additional Charge
Fourth and Each Additional Cart $10.30 $ 10.58
8. ADDITIONAL 96 GALLON YARD AND GARDEN CARTS
Second and Third Yard and Garden Cart No Additional Charge
Fourth and Each Additional Yard and Garden Car $10.30 $ 10.58
9. BACK YARD SERVICE****
Monthly service charge $10.77 $ 11.06
Qualified Disabled No Additional Charge
*} Eligible for City Utility Discount Program
(Current 10% discount may be changed)