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HomeMy WebLinkAboutAgenda Report - March 16, 2005 E-15 PHAGENDA ITEM 660`5 CITY OF LODI COUNCIL COMMUNICATION TM AGENDATITLE: Set Public HearingforApril 20,2005, to Consider Resolution Adopting Water Rate Increase MEETING DATE: March 16,2005 PREPARED BY. Public Works Director RECOMMENDED ACTION: That the City Council set a public hearing for April 20, 2005, to consider resolution adopting a water rate increase. BACKGROUND INFORMATION: In the spring of 2004, the City Council approved a rate increasefor water service (as well as increases in wastewater and refuse services). The City-wide public notification done then included provisions for future rate adjustments based on the Consumer Price Index (CPI). At that time, the rate increase for wastewater was adopted to take place in two steps, with the second one to occur in July 2005. Refuse rates, per our agreement with Central Valley Waste Services are adjusted annually and were the subject of a separate public hearing in March 2005. Water rates were increased significantly in 2004, mainly to account for the Woodbridge Irrigation District water purchase contract and, in part, to help fund PCEITCE contamination remediation and legal costs. At this point, while significant progress has been made on the contamination issue, the City's actual costs are still uncertain. While it seems dear that higherwater rates will be necessary, the amount and timing of increaseswould, at this point, have to be set with a "best -guess" process. Given these uncertainties, staff is recommending that the City proceed with a CPI -based increase at this time and defer consideration of a more significant increase until both costs and cash-flow requirements are better known, Staff feels that increasing utility rates on a more frequent basis will maintain better cash flow and reserves within the utility and ultimately be more palatable with customers than waiting longer periods and adopting large increases. The San Francisco-Oakland-SanJose Consumer price index for all items (unadjusted) for December2003 was 195.3 and 199.5 for December 2004, which translates to 2.2%. This increase on all water service charges results in total water rates as shown on ExhibitA. The increase amount for a 3 -bedroom home is $0.58 per month. The effective date of the increase is May 1, 2005, which is one year from the previous increase. FISCAL IMPACT: Increased annual water fund revenuewill be approximately $170,000. FUNDING AVAILABLE: Not applicable. I Richard C. Prima, Jr. PublicWorks Director RCPlpmf Attachment APPROVED:""? Blair King, City MaWager JAUTILITY RATES1CSetPH Ratelncrease.doc 31712005 Exhibit A: Water Utility (3/8/05 DRAFT) Proposed 2.2% Water Utility Rate Increase Residential Flat Rate (per month): Present Rate Proposed New Rate Single Family Unit (one bedroom) $ 18.24 $ 18.64 (two bedrooms) $ 21.90 $ 22.38 (three bedrooms) $ 26.26 $ 26.83 (four bedrooms) $ 31.54 $ 32.24 (five bedrooms) $ 37.85 $ 38.68 (six bedrooms) $ 45.41 $ 46.41 (seven bedrooms) $ 54.47 $ 55.67 Multiple Family Unit (one bedroom) $ 15.66 $ 16.00 (two bedrooms) $ 18.78 $ 19.19 (three bedrooms) $ 22.53 $ 23.02 + 20% for ea. add'I. bedroom Commercial Flat Rate varies add: 2.2% (Examples below) (Existing accounts only. New accounts are metered.) Present Rate Proposed New Rate V service $ 26.26 $ 26.83 1" service $ 39.41 $ 40.28 1'/2' service $ 52.54 $ 53.70 2" service $ 65.69 $ 67.14 3" service $ 91.97 $ 93.99 4" service $ 118.23 $ 120.83 Metered Rate $0.707 per 100 cu. ft. $0.723 plus monthly base charge: Present Rate Proposed New Rate %" meter $ 15.43 $ 15.77 1" meter $ 23.14 $ 23.65 1'/i' meter $ 30.85 $ 31.53 2" meter $ 38.58 $ 39.43 3" meter $ 54.00 $ 55.19 4" meter $ 69.43 $ 70.96 6" meter $ 100.29 $ 102.50 8" meter $ 131.17 $ 134.06 10" meter $ 162.04 $ 165.60 Construction Water Charges: Present Rate Proposed New Rate per 100 cu. ft. $ 0.707 $ 0.723 Note: Charges are total, includes 2.2% increases for infrastructure replacement charges. The above are the most common examples of existing water rates, all other rates, including Discount, Outside City, City and Miscellaneous water rates will also be raised 2.2%. CITY OF LODI Carnegie Forum • 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: Apri120,2005 Time: 7:00 p.m. For information regarding this notice please contact: Susan J. Blackston City Clerk Telephone: (209) 3336702 NOTICEOF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, April 20, 2005, at the hour of 7;00 p.m., or as soon thereafter as the matter maybe heard, the City Council will conduct a PublicHearing at the Carnegie Forum, 305 West Pine Street, Lodi, to considerthe following matter: a) a resolution adoptingwater rate increases. Information regardingthis item may be obtained in the office of the Public Works Department, 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 challengethe subject matter in couri, you may be limitedto raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondencedelivered 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: March 16,2005 D. Stephen Schwabauer CityAttomey N:VWmnisWionVCLFfl"USHEARrNQTICMNotpw-doc 3114105 DECLARATION OF POSTING SET PUBLIC HEARING FOR APRIL 20,2005, TO CONSIDER A RESOLUTION ADOPTING WATER RATE INCREASES On Friday, March 18, 2005, copy of a Notice of Public increases, (attached hereto, locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum in the City of Lodi, San Joaquin County, California, a Hearing to consider a resolution adopting water rate marked Exhibit "A), was posted at the following four declare under penalty of perjury that the foregoing is true and correct. Executed on March 18,2005, at Lodi, California Cl Kari J. 06dwick Administrative Clerk N:\Administration\CLERKWCOECPOS72.DOC ORDERED BY; SUSAN J. BLACKSTON CITY CLERK Jacqueline L. Taylor, CMC Deputy City Clerk Jennifer M. Perrin, CMC Deputy City Clerk •e c c+l n M Please ,� eel N of this fax h� tial hg 3 i67 CITY OF LODI P.0.BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT SET PUBLIC HEARING FOR APRIL 20,2005, TO CONSIDER A RESOLUTION ADOPTING WATER RATE INCREASES PUBLISH DATE: SATURDAY APRIL 2,2005 TEAR SHEETS WANTED: Three (3) please SEND AFFIDAVIT AND BILL T O SUSAN BLACKSTON, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, MARCH 17,2005 ORDERED BY: JACQUELINE L. TAYLOR, CMC DEPUTY CITY CLERK KARI J. : ADWICK ADMINI TRATIVE CLERK JENNIFER M. PERRIN, CMC DEPUTY CITY CLERK Verify Appearance of this Legal in the Newspaper — Copy to File SEND PROOF OFADVERTZSEMENT. THANK YOU!! Faxed to the Sentinel at 369-1084 at '3c<)L -, (time) on aE£ o ..,i (nate) _ I (pages) LNS — Pnoned 10 confirm rete pt of all pages at _{time, ,Jac _ KJC Jon (nitials) N:1Administration\CLERKWJMdvins2.dor- PROOF OF PUBLICATION (2015.5 C.C.C.P.) STATE OF CALIFORNIA County of SanJoaquin I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above entitled matter. I am the principal clerk of the printer of the Lodi News -Sentinel, a newspaper of general circulation,printed and published daily except Sundays and holidays, in the City of Lodi, California, County of San Joaquin and which newspaperhad been adjudicated a newspaper of general circulationby the Superior Om t,Department 3, of the County of San Joaquin, State of California, under the date of May 26th, 1953. Case Number 65990 ;that the notice of which the annexed is a printed copy (setin type not smallerthan non-parell) has been published in each regular and entire issue of said newspaper and not in any supplement thereto on the following dates to -wit: ADrll 2nd all in the year 2005. I certify (or declare)under the penalty of perjury that the foregoing is true and correct. Dated at Lodi California, this 2nd day of April, 2005 ------- - -- ••-- • ......�� ...... .............. 'his space is for the County Clack's Filing Stamp EC'E,i ._._ �. .�,Pp. 2005 'roof of Publication cf otice of Public Hearing ity of IzA April 2 oth, 2005 Signature 1 8501595 PROOF OF PUBLICATION (2015.5 C.C.C.P.) STATE OF CALIFORNIA County of SanJoaquin I am a citizen of the United States and a resident of the County aforesaid I am over the age of eighteen years and not a party to or interested in the above entitled matter. I am the principal clerk of the printer of the Lodi News -Sentinel, a newspaper of general circulation,printed and published daily except Sundays and holidays, in the City of Lodi, California, County of San Joaquin and which newspaper had been adjudicated a newspaper of general circulation by the Superior Court, Department 3, of the County of San Joaquin, State of California, under the date of May 26th, 1953• Case Number 65990; that the notice of which the annexed is a printed copy (set in type not smallerthan non-pareil) has been published in each regular and entire issue of said newspaper and not in any supplementthereto on the following dates to -wit: April 2nd all in the year 2005. Icertify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated at Lodi, California, this 2nd day of April, 20 5 ............ ................. This space is for the County Clerk's Filing Stamp Proof'of Publication of lot! ce of Public Hearing Signature 1 8501595