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Resolution No. 90391 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING THE RATES FOR THE SALE OF WATER IN THE CITY OF VERNON IN ACCORDANCE WITH THE VERNON CITY CODE AND ORDINANCE NO. 1029 WHEREAS, on May 16, 1995, the City Council of the City of Vernon adopted Ordinance No. 1029 which, among other things, established the water rates for the City of Vernon beginning July 1, 1995, with such rates being established by resolution thereafter; and WHEREAS, Vernon City Code Section 25.1 provides that, except as otherwise provided in Chapter 25 of the Vernon City Code, the rates for the sale of water in the City are to be set by resolution; and WHEREAS, by letter dated March 30, 2006, Samuel Kevin Wilson, Director of Community Services and Water, has recommended that the rates established for water services be raised effective June 1, 2006, to reflect the City's increased cost and materials to provide the water services; and WHEREAS, no interested party has filed a written request for Imailed notice of a meeting on new or increased fees or service charges; and WHEREAS, the City Council of the City of Vernon held on May 17, 2006, a public meeting on the consideration of the water rate increases during which any and all oral or written presentations could be made in accordance with Government Code Section 66016; and WHEREAS, the City Council of the City of Vernon wishes to establish new rates for the sale of water in the City of Vernon in accordance with the Vernon City Code. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby establish the rates for the sale of water in the City of Vernon pursuant to Vernon City Code Sections 25.1 through 25.9, as set forth in Exhibit "A" which is attached hereto and made a part hereof as though fully set forth at length. SECTION 3: The City Council of the City of Vernon hereby declares that the applicable rates contained in this resolution shall be effective for the first regular water reading for monthly billing purposes in the month of June 1, 2006. SECTION 4: The Acting City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 24th day of May 2006. ATTEST: BRU V. LKENHORST, JR., Actin ty Clerk CLEONIS C. t �LBUR�GM�ayor� - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9039, was duly adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Wednesday, May 24, 2006, and thereafter was duly signed by the Mayor of the City of Vernon. _ (SEAL) BRU V. LKENHORST, JR., Acti ty Clerk - 3 - EXHIBIT A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "All Water Rates For The City of Vernon Water System Effective June 1, 2006 1. Monthly Charge For Meters (V.C.C. Sec. 25.2): Meter Size Monthly Minimum Charge 5/8" $ 5.13 %" 7.77 1" 12.99 1 %" 25.91 2" 41.46 3" 77.73 4" 129.55 6" 259.10 8" 414.56 2. Water Consumption Rates Per 100 Cubic Feet W.C.C.Sec 25 3): For water used: $1.093/100 cubic feet 3. Standby Service Meter Charge W.C.C. Sec. 25.3): Meter Minimum Monthly Consumption Size Allowance For Standby Service Monthly Charge 2" 6,000 cubic feet per month $ 107.04 3" 15,000 cubic feet per month 241.68 4" 30,000 cubic feet per month 457.45 6" 75,000 cubic feet per month 1,078.85 8" 150,000 cubic feet per month 2,054.06 The charge for water in excess of the monthly consumption allowance shall be the rate per cubic foot. A - 1 EXHIBIT "A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. Minimum Rates for Meters for Fire -Related Services (V.C.C. Sec. 25.4): Sprinkler Connection Size Monthly Charge 4" - $ 2.00 6" 2.00 8" 2.00 loll 2.00 The charge for all water used shall be at the rate shown in Section 2 of Exhibit A, and shall be payable semiannually. 5. Minimum Rates for Unmetered Service for Fire Protection Purposes (V.C.C. Sec. 25.4): Monthly charge per sprinkler head: $0.25/head 6. Square Footage Charge (V.C.C. Sec. 25.5): Monthly charge for fire -related services based on the square footage of buildings: $0.00291 per square foot. 7. Minimum Charge for Temporary Installation and Relocation W.C.C. Sec. 25.6) (each person, firm or corporation): Initial temporary installation: $ 200.00 Relocation of said service: $ 50.00 The water furnished through said temporary connection shall be charged at the rate of one and one-half times the consumption rate set forth in Section 2 of Exhibit A. 8. Bond or Deposit for Temporary Connection to Fire Hydrant W.C.C. Sec. 25.7) (each person, firm or corporation): Amount of each bond or deposit: $500.00 A - 2 EXHIBIT "A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9. Rates for Retail Water Business (V.C.C. Sec. 25.8) (each person, firm or corporation): The rate shall be one and one-half times the meter charge and the water consumption rate set forth in Sections 1 and 2 of Exhibit A. 10. Water Rates per 100 Cubic Feet of Reclaimed Water (V.C.C. Sec. 25.9) (each person, firm or corporation): Malburg Generating Station $0.480/100 cubic feet until January 1, 2019 Reclaimed water: 0 A - 3 $0.846/100 cubic feet EXHIBIT "A" SUPPORTING DOCUMENTS ENGINEERS REPORT WATER RATE INCREASE March 2006 The City of Vernon last increased its water rates in 2001. Since that time the rates for MWD water, power costs, and the WRD assessment fee have risen significantly. In addition, the Water Department will be embarking on needed capital improvements over the next several years to upgrade the water system. Due to these factors a water rate increase is necessary. In 1995 the City of Vernon retained Donald R. Howard Consulting Engineers, Inc. to prepare a cost of service and rate design study for the City of Vernon Water Department. The rate design principles established in the Howard study have been utilized to develop the proposed rate increase. The City of Vernon is an Industrial Community located 4-miles southeast of Downtown Los Angeles. The City Water Department purveys water to the majority of the City. California Water Service and Maywood Mutual No. 3 purvey water to customers located in the eastern portion of the City. Vernon serves approximately 1200 customers with varying consumption requirements. All City customers receive a high degree of fire protection. Vernon's water system is currently rated as a Class I System by the insurance services office (ISO), receiving a score of 37.21 out of a maximum 40.0 points. Vernon's water system consists of nine wells, seven reservoirs and one elevated tank. The total storage capacity is approximately 16.75 million gallons. In addition, the City has three pumping stations and approximately 260,000 linear feet of pipe. The City of Vernon Water Department produces a vast majority of its water by pumping from the central basin. Vernon owns rights to 8039 acre-feet/year and typically supplements its demand requirements with leased water rights and MWD water supplies. The City entered into a 5-year agreement with the Central Basin Municipal Water District (CBMWD) to purchase MWD surface water supplies year round. The terms of the current agreement allow the City to purchase up to 10,050 acre-feet of Tier 1 water over the 5-year term. The City's water usage has been steadily decreasing since 2001 with water production down by 10.4 percent; however, it now appears to be stabilizing at approximately 11,000 acre- feet. MWD supplies are needed to supplement the nearly 3,000 acre -feet -year shortfall in water supplies. The cost to purchase MWD Tier 1 water and the WRD assessment fees and lease rates have fluctuated in recent years, however, they are now higher than in 2001. See Table 1. TABLE 1 WATER COSTS PER ACRE-FOOT 2001 2002 2003 2004 2005 12006 MWD Non Interruptible $478 $478 $457 $467 $489 $498 WRD Pump Assessment Fee $112 $112 $117.60 $115 $128.25 1$134.66 The estimated budget for fiscal year 2005-2006 is $7,922,000.00 up 13.4 percent over 2001. In 2001 labor expenses accounted for 17.4% of the expenditures. This has increased slightly to 18.9% in the 2005-2006 fiscal year budget. While water production expenditures have gone from 53.1 % of the budget to 40.6% of the budget. Table 2 reflects significant changes from the 2001 budget to the 2006-projected budget. Table 3 compares the operating budget for Fiscal Year 2001-2002 and Fiscal Year 2005-2006 for the Vernon Water Department. TABLE 2 SIGNIFICANT COST CHANGES BETWEEN 2001 TO 2006 SECTION PERECENT/% INCREASE/DECREASE DOLLARS/$ INCREASE/DECREASE MWD Interruptible Rate + 4.18% WRD Pump Assessment + 20.23% Electrical Rates + 60% Salary & Benefits + 23% + 279,952.00 Water Production Costs - 13% - 491,200.00 Department Supplies + 39% + 70,000.00 Contract Services & Maintenance - 28% - 145,800.00 Administrative Transfer + 800% + 480,000.00 Equipment Non Auto + 51.22% + 67,742.00 Capital Improvements + 76.99% + 435,000.00 Budgeted Expenditures + 13.4% Water Sales + 10.40, 4o Meter Capacity - 12.2% In most cities the primary function of the water purveyor is to provide potable water supply to its residents for consumption. In those cities the consumption rate governs pipe and reservoir sizes and operational costs. Fire service is a secondary consideration. The City of Vernon is unique in that most customers are industrial customers. The water system is designed to suppress fires and to provide industrial water service. The Donald Howard Study was designed to provide a fair share of costs for all customers to insure adequate fire protection and consumable water. The City of Vernon's water systems ISO Class 1 Rating is the highest achievable, and results in lower insurance rates for its customers. The water system was designed to provide proper water flows and pressures to fire hydrants and automatic sprinkler systems during times of emergency. Ea TABLE 3 PROJECTED OPERATING BUDGET FOR THE W A TFR T)FP A R TMRMT EXPENDITURE COMPONENT 2001 - 2002 Percent Increase Projected - 2005 - 2006 SALARIES 1101 REGULAR $1 017,321 17.96% $1,200,000 1102 OVERTIME $10,000 50% $15,000 1103 CASUAL 0 0 0 SUB TOT $1027 21 18.3% $1 215 000 BENEFITS 2120 RETIREMENT $70,000 57.14% $110,000 2130 GROUP INSURANCE $73,050 84.81% $135,000 2140 UNEMPLOYMENT $5,922 1.320/o $6,000 2150 WORKER'S COMPENSATION $31,320 -52.11.% $15,000 2160 AUTO INSURANCE $4,935 11.45% $5,500 2170 MEDICARE $3,500 171.43% $9,500 SUB TOT $18&727 4&89% $281 000 SUPPLIES AND OTHER SERVICES 524 DEPRECIATION $180,000 94.44% $350,000 5100 OFFICE EXPENSES $3,000 -50.00% $1,500 5110 PUMPED WATER $2 087,200 -44.43% $1,160,000 5115 RECLAIMED WATER $0 0 5120 PURCHASED WATER $950,000 47.47% $1,401,000 5200 DEPARTMENT SUPPLIES/SERVICES $180,000 38.89% $250,000 5210 WATER TREATMENT $35,000 -157.14% $15,000 5220 UNCOLLECTABLES $10,000 20.00% $12,000 5230 IN -LIEU TAX $160,000 15.63% $185,000 5300 COMPUTER SERVICES $68 474 0 0 5400 UNIFORMS $2 500 200.00% $7,500 5500 ADVERTISING $700 42.86% $1,000 5600 UTILITIES & COMMUNICATIONS $675,000 -2.22% $660,000 5700 VEHICLE LEASE $53,000 107.55% $110,000 5900 AUTOMOBILE ALLOWANCE 0 0 0 5900 BLDG & EQUIPMENT 0 0 0 5910 EQUIPMENT MAINTENANCE $160 000 -37.50% $100,000 5932 LEGAL EXPENSE $0 0 5962 CONTRACT SERVICES $360,800 -23.78% $275,000 5965 TRAVEL MEETINGS & MEMBERSHIPS $7 793 182.30% $22,000 5966 PUBLICATIONS & TRAINING $2,000 0 $2,000 5998 ADMIN EXPENSE TRANSFER $60,000 800.00% 1$540,000 SUB TOT 995 467 4.09% 1 $4 791 000 UIPMENT OUTLAY 8400 AUTOMOBILE M 000 11.84% $85,000 8500 NON -AUTO $132 58 51.22% $200,000 SUB TOT $20&M 3645`/i $285000 CAPITAL OUTLAY 9000 CAPITAL PROJECTS $515 500 93.99% $1,000,000 400 ALLOWANCE FOR BAD DEBT $50 000 $0 SUB TOTAJJ S56 76.990/- $1 000 000 EPARTMENT TOTAL S69R5.273 t A At eI ev al-) A. In developing the new proposed rate schedule, city staff has utilized the model developed in the Donald Howard Rare Design. The projected operating budget was subdivided into Fire Related and Commodity Related Expenses as shown in Table 4. Table 4 City of Vernon Water Department Projected Fire and Commodity Related Costs Fiscal Year 2005-2006 Acct No. Section Pro ecte Bud et Fire Related Costa Commodity: Labor Commodi : Non Labor Salaries 51101 Regular $1 ,000.00 $441,600.00 $758,400.00 0 51102 Overtime $15,000.00 $5,520.06 $9.480.00 0 51103 Casual $0.00 $0.00 S0.00 0 Sub Total $1 1S 000.00 $447120.00 $767 .00 0 52120 Retirement $110,000.00 $40,480.00 $69,520.00 0 52130 Group Insurance $135,000.00 $49,680.00 $85 320.00 0 52140 Unemployment $6,000.00 $2,208.00 $3,792.00 0 52150 Worker's Co $15,000.00 $5,520.00 $9,480.00 0 52160 Auto Insurance $5,500.00 $2,024.00 $3,476.00 0 52170 Medicare $9,500.00 $3,496.00 $6,004.00 0 52180 Benefit Allowance $0 $0.00 $0.00 $0 54524 Sub Total Depreciation $281 .00 $350,000.00 $103 409.00 $175,000.00 $177 92.00 $0.00 $0 $175000.00 6 55100 Sub Total Office Expense $350 000.00 $1,500.00 $175 000.00 $552.00 $0.00 $948.00 $175 000.00 0 55110 Puniped Water $1,160,000.00 0 0 $1,160,000.00 0 55120 Purchased Water $1,450,000.00 0 0 $1,450,000.00 55200 Deparbnent Supplies $250 000.00 $92 000.00 $158,000.00 0 55210 Water Treatment $15,000.00 $5,520.00 0 $9,480.00 5 Acd No. Section Projected Budget Fire Related Costs Commodity: Labor Commodity: Non Labor 55220 Uncollectibles $12,000.00 $6,000.00 0 $6,000.00 55230 In -Lieu -Tax $185,000.00 $39,590.00 0 $145,410.00 55400 UnifonTis $7 500.00 $3 750.00 0 $3,750.00 55500 Advertising $1,000.00 $500.00 0 $500.00 55600 U&C Power for Pumping $660 000.00 0 0 $660,000.00 Communications 55700 Vehicle Lease $110 000.00 $55,000.00 0 $55, 000.00 55910 Equipment Maintenance $100 000.00 $36,800.00 0 $63,200.00 55962 Contract Services $275,000.00 $101,200.00 0 $173,800.00 55965 Travel, Meetings & Training $22 000.00 $11,000.00 0 $11,000.00 55966 Publications & Training $2,000.00 $1,000.00 0 $1,000.00 55998 Admin Expense Transfer $540,000.00 $198,720.00 $341,280.00 0 .6Sub Total $4 791000.00 $551 632.00 5500 28.00 S3 739140.00 88400 Automobile $85,000.00 $42,500.00 $0.00 $42,500.00 88500 Non -Automobile $200,000.00 $100,000.00 0 $100,000.00 Sub Total 1 $285 000.00 1 $142,M.00 1 0 1 $142 00.00 "No.SectionRequested Budget Fire Related Costs Commodity: Labor Commodity. Non Labor 99000 Capital Pro'eots $1 000 000.00 $500,000.00 0 $500,000.00 Sub Total $1000 000.00 $500 000.00 $0.00 5500,000.00 Total Total % of Budget in $ Total % of Budget in S Total % of Budget in $ $7 000.00 $1919 660.00 $1 5 700.00 $4 640.00 Labor costs are segregated between the personnel needed if the sole purpose of the water system is to provide Fire Protection versus the personnel needed for water production for retail sales. The salaries needed for water production were assigned to the commodity related costs, the balance was assigned to the fire related costs. All accounts related directly to the production and purchasing of water was allocated to the commodity costs and the remainder of the expenses (other than labor expenses) associated with operating the system were allocated to the fire related costs. It was determined that 36.8 percent of the expenses in accounts 1101 through 1103 salaries, and accounts 2120 through 2180 benefits were found to be fire related while 63.2 percent were found to be commodity related. Accounts 5100, 5200, 5210, 5910, 5962 and 5998 (office expense, department supplies, water treatment, equipment maintenance, contract services and administrative expense transfer respectively) were all apportioned by the labor percentage account. Account 5110 and 5120 (pumped water and purchased water) were all apportioned to commodity costs. The franchise expense account 5230 and administrative transfer fee 21.4 percent fire related and 78.6 percent commodity non -labor. Account 5600 was segregated between power for pumping and other expenses. The power for pumping expense was apportioned to the commodity related expense. The balance of the account was apportioned to the fire related expense. The remainder of the expense accounts 4524, 5220, 5300, 5400, 5500, 5700, 5965, 5966, 8400, 8500, 9000, and 9400, along with depreciation were all split equally between fire related and commodity related expenses. The rates are designed such that fire related costs are assigned to customers based on the size of the building and the outside storage (on the basis of square footage). Commodity related expenses were assigned to the regular metered rates. Fifty percent of the commodity related labor was assigned to the meter service charge of regular customers and the other fifty percent was allocated to the commodity charge. The meter service charges were based on meter capacity. The balance of the commodity related costs are assigned to the commodity rate. Earnings from construction charges were subtracted from commodity and fire related expenses at the same percentage rate as were estimated for labor costs. Water loss was assumed to be five percent. The square footage of building within the Vernon water service area was assumed to be 45,277,963 square feet and was obtained from City G.I.S. information. The rate design utilized was in accordance with Rate Study 3B of the Donald Howard Consulting Engineers, cost of service and rate design study revised June 28, 1995. During the last four years numerous large industrial complexes have been demolished. Many of these buildings were served by multiple large water services. When the buildings were removed the associated water service was also removed and typically replaced with a smaller water service. This has contributed to a dramatic decline in both the number of water services that the City maintains and the meter capacity resulting in a 12.2 percent decrease in meter capacity serving industrial uses. 7 In conclusion, the City has not increased its water rates since 2001. Due to rising costs and needed capital improvements a rate increase is necessary. The meter costs will increase by approximately 81-percent; the commodity rate will increase by 12.8-percent and the square foot charge will increase by 38-percent. Due to the significance of the increase it is recommended that the increase be implemented in two phases over the next two years. The proposed rates are reflected in Appendix 1. Appendix 2 is the proposed service charge calculation for Phase II. Appendix 3 is the projected revenue from the rate increase. Appendix 4 compares the current costs for the City's top 25 customers. Appendix 5 compares the rates of local water purveyors. Appendix 6 provides a summary of local water purveyor costs. 0 APPENDIX I PROPOSED RATE SCHEDULE Proposed Rate Increases 1. MONTHLY CHARGES FOR METERS (V.C.C. SECTION 25.2): Meter Size Monthly Minimum Charge Phase I Monthly Minimum Charge Phase H 5/8" 5.13 6.61 3/a" 7.77 9.91 1" 12.99 16.52 1 1/2" 25.91 33.05 2" 41.46 52.88 3" 77.73 99.15 4" 129.55 165.25 6" 259.10 330.50 8" 414.56 528.80 2. WATER CONSUMPSION RATES PER 100 CUBIC FEET (V C C SECTION 25 3): Phase I - For water used 1.093/100 Cubic Feet Phase II - For water used 1.159/100 Cubic Feet 3. MINIMUM RATES FOR METERS FOR FIRE RELATED SERVICES (V.0 C Section 25.4): For Phase I and II Sprinkler Connection Size Monthly Charge 4" $2.00 6" $2.00 8" $2.00 10" $2.00 The charge for all water used shall be at the rate shown in subsection 2, and shall be payable semi annually. 2 4. MINIMUM RATES FOR UNMETERED SERVICE FOR FIRE PROTECTION PURPOSES (V.C.C. SECTION 25.4): For Phase I and H Monthly charge for sprinkler head: $0.25/head 5. MONTHLY SQUARE FOOT CHARGE W.C.C. SECTION 25.5): Monthly charge for fire related services based on the square footage of building: Phase I - 0.00291 per square foot Phase II - 0.00337 per square foot 6. STAND-BY METER CHARGE N.C.C. SECTION 25.6): Minimum charge and monthly consumption allowance for stand-by meters Phase 1 Meter Size Meter Charge Minimum Monthly consumption Allowance for Stand-by Service Minimum Monthly Charge 2" 41.46 6,000 cubic feet per month 107.04 3" 77.73 15,000 cubic feet per month 241.68 4" 1 129.55 30,000 cubic feet per month 457.45 6" 259.10 75,000 cubic feet per month 1,078.85 8" 414.56 150,000 cubic feet per month 2,054.06 Phase 2 Meter Size Meter Charge Minimum Monthly consumption Allowance for Stand-by Service Minimum Monthly Char e 2" 52.88 6,000 cubic feet per month 122.42 3" 99.15 15,000 cubic feet per month 273.00 4" 165.25 30,000 cubic feet per month 512.95 6" 1 330.50 175,000 cubic feet per month 1,199.75 8" 1 528.80 1150,000 cubic feet per month 2,267.30 The charge for water in excess of the monthly consumption allowance shall be the monthly consumption allowance plus the rate shown in Subsection 2. 7. MINIMUM CHARGE FOR TEMPORARY METER INSTALLATION AND RELOCATION: For Phase I and II Initial temporary installation $200.00 Relocation of said service $50.00 10 The water furnished through said temporary connection shall be charged at the rate of one and one-half the consumption rate set forth in Subsection 2. 8. BOND OR DEPOSIT FOR TEMPORARY CONNECTION TO FIRE HYDRANT W.C.C. SECTION 25.8) EACH PERSON FIRM OR CORPORATION: For Phase I and II Amount of each bond or deposit: $500.00 9. RATES FOR RETAIL WATER BUSINESS (V C C SECTION 25.8) EACH PERSON FIRM OR CORPORATION: For Phase I and II The rate shall be one and one half times the meter charge and the consumption rate set forth in Subsections 1 and 2. APPENDIX II Costs calculated to meet 2005-2006 budget costs, which will ultimately be recovered in Phase II rates SERVICE CHARGE CALCULATION PHASE II Table 5 Meter Size Number of Meters Capacity Factor Number of Meters Capacity Factor 5/8" 25 1 25 3/4" 31 1.5 46.5 1" 243 2.5 607.5 1.5" 170 5 850 2.0" 504 8 4032 3.0" 45 15 675 4.0" 51 25 1275 6.0" 28 50 1400 8.0" 1 80 80 Total 1098 8991 X = Commodity Related Labor Expense = $1,445,700.00 S = Standby Revenues = $12,266.38 R = Hydrant Meter Revenues = $7,045.19 X—(S+R)=B B = Adjusted Commodity Related Labor Expense = $1,426,388.43 11 Y = 50% of the Adjusted Commodity Related Labor = $713,194.22 Y=713,194.22=Z(8991) Z=6.61 12 12 SERVICE CHARGE - PHASE II 'rahla A Meter Size (Z)(X) Factor Proposed Monthly Meter Charge Present Meter Charge 5/8" 6.61 x 1 6.61 3.65 3/4" 6.61x1.5 9.91 5.63 1" 6.61 x 2.5 16.52 9.38 1.5" 6.61 x 5.0 33.05 18.77 2.0" 6.61 x 8.0 52.88 30.03 3.0" 6.61 x 15.0 99.15 56.31 4.0" 6.61 x 25.0 165.25 93.85 6.0" 6.61 x 50.0 330.50 187.70 8.0" 6.61 x 80.0 528.80 300.32 COMMODITY CALCULATION CHARGE - PHASE II B = Adjusted Commodity Related Costs = $1,426,388.43 50% of Adjusted Commodity Labor Costs = $713,194.22 C = Construction Related Projected Revenues = $178,000.00 63.2% of Construction Related Revenue assigned against Commodity Labor Costs N = Commodity Non Labor Costs = $4,556,640.00 Acre -Feet Projected Water to be Sold = 10,211 A.F. A = Projected Water Sales in 100 Cubic Feet=10,211 x 435.6 = 4447911.6 HCF Commodity Charge = (.513 - .632 C + N) _ A _ (.5) 1,426,388.43 - .632 (178,000) + 4,556,640.00 4447911.6 Proposed Commodity Charge Current Commodity Charge 12 _ $1.159/100 C.F. _ $1.027/100 C.F. (12.9 percent Increase) SQUARE FOOTAGE CHARGE CALCULATIONS — PHASE II 36.8% of Construction Related Revenues Assigned As Credit to Fire Related Cost U = Fire Related Costs V = Metered Fire Service Revenues U—V=T T = Adjusted Fire Related Costs S = Projected Construction Related Revenues R = Total Square Feet in Service Area = 1,919,660.00 = 22,313.85 =1,897,346.20 = 178,000 = 45,277,963 Square Footage Charge = T-.3685 = (1,897,346.20)-.368 (178,000) R 45,277,963 Proposed Square Foot Charge Per Month = 0.00337 Current Square Foot Charge Per Month = 0.00244 (38.1 Percent Increase) 13 SERVICE CHARGE PHASE I RATE INCREASE - IS ONE HALF OF PHASE II Meter Size (Z)(X-) Factor Proposed Charges Phase I Present Meter Charge Proposed Charges Phase II 5/8" 6.90 x 1 5.13 3.65 6.61 3/4" 6.90 x 1.5 7.77 5.63 9.91 1" 6.90 x 2.5 12.95 9.38 16.52 1.5" 6.90 x 5.0 25.91 18.77 33.05 2.0" 6.90 x 8.0 41.46 30.03 52.88 3.0" 6.90 x 15.0 77.73 56.31 99.15 4.0" 6.90 x 25.0 129.55 93.85 165.25 6.0" 6.90 x 50.0 259.10 187.70 330.50 8.0" 6.90 x 80.0 414.56 300.32 528.80 COMMODITY CHARGE PHASE I Proposed Commodity Charge Phase II = $1.159/100 C.F. Current Commodity Charge = $1.027/100 C.F. Difference = $0.132/100 C.F. SQUARE FOOTAGE CHARGE CALCULATIONS PHASE I Proposed Square Foot Charge Per Month - Phase II = $0.00337 Current Square Foot Charge Per Month = $0.00244 Difference = $.00093 Phase I Square Footage Charge Increase:.00244 + 0.00093 / 2 = 0.00291 Phase I Commodity Charge Increase =1.027 + .132 / 2=1.093/100 C.F. 14 APPENDIX III PHASE II PROJECTED REVENUES 2006 Proiected Revenues: Meter Revenues: $713,194.22 standby Meter Revenues: $12,266.38 Temporary Hydrant Meter Revenues: $7,045.19 Fire Meter Revenues: $22,313.85 Commodity Revenues: $5,157,338.22 Construction Revenue: $178,000.00 Square Foot Revenues: 1,831,842.20 Total Revenues: $7,922 000.00 15 C-i o A 7 9 7 (IQ DQ O w O w O W C C w w O C W w O C W W C C W W O w O w O W O W O w O W O W O W O W C W U] H M 7d O� z O� N OD T DO A A N N O A Oi 00 O= Oi Og N y s a �, +� Ir► o S ss O H 00 H c� `HW° o w o ds �' $' w n 0 S OWO w C O S J C S VHi tHl� w w C 8 tOOA 8 8 •oJo OHp J J S S O .`2,' O O O C21 �g y yy� �yy �yg ��qq y yy N yy O W �9 S$ S S S 8 8 8 $ 8 8 S 8 8 S S S 8 8 S$ A C21 C=f t" �G w c C tNp in A w 00 C O C ON tNj p�� w y i e a O� w w oho O O� J W w 00 lh �O W W U W W Uft O OppJp�� W �aQ v W W �Ci• p�p�� (Wy.�� O� O� y iy� N W OHO N y N iJ y N ►�i H H fA tJ H N N N N N N H ►7� �l la w S C S c' �i,, }v W t00A Q Q Q � A. `�+ � 00 W FV�1 V.A. 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A 64 _ (per �1 CH •La 'ti ApA O J J 91 b - In 0�0 �G W r-+ 00 S �W�pp pOppp O 00 [J N U J Q q rb �pp N C J w ,p OD O A S O ►+ 00 00 C0 0o v�i Ay� O� A 0O tA 00 AA O w 000 o 00 Ch 00 b 00 O� o N p, 00 S 0 0 o A 1 7 bo " e a o C— RECYCLED WATER RATE STUDY MARCH 2O06 The Community Services & Water Department has reviewed water costs to determine a rate for recycled water. This report contains three scenarios in determining a rate for recycled water. SCENARIO 1 Scenario 1 is an increase in water consumption beyond the City's current deliveries. For example, the Malburg Generating Station will become operational and will require an additional 1200 acre feet of water to be delivered to the site. The Energy Commission has required the Malburg Generating Station to utilize recycled water. In this case, existing consumers should not be required to absorb any additional cost to provide additional water for this facility. Therefore the Malburg Generating Station should be required to pay all costs for delivering recycled water to the site. SCENARIO 2 Under this scenario the City will sell recycled water to a customer in lieu of potable water. In this case the recycled water rate will be established per Scenario 1, however the potable rate may have to be adjusted to accommodate the increase burden of overhead caused by the reduction of potable water sales. SCENARIO 3 Under this scenario the potable rate would be maintained as if recycled water is unavailable. Any difference in cost realized by purchasing the lower cost recycled water versus the higher cost MWD water would adjust the recycled rates. While the water cost may be lower, the overhead burden on potable water customers would be increased. In this scenario any savings or losses realized by selling recycled water would be absorbed into the recycled water rates. SCENARIO 1- New Water Customers Reguirinp Recycled Water A new large volume customer could substantially impact water rates. The cost for the City to produce water from its wells utilizing City owned rights is substantially less costly than purchasing MWD water, leasing water rights and pumping well water or purchasing recycled water. The cost of each water supply is shown in Attachment No. 2 and only reflects the cost of the water and does not take into account overhead, depreciation, etc. needed to collectively cover all costs encumbered by the Water Department. Attachment No. 1 reflects the recycled water costs from Central Basin based on the amount of water purchased. It is anticipated that the Malburg Generating station will utilize 1200 acre-feet annually. Under this scenario a new customer should be responsible for the increased cost of supplying it with water, rather than requiring all customers to pay increased rates in order to provide water to a single consumer. The Malburg Generating Station will be a substantial new customer to the City water system. If they were to utilize potable water, the City would either be required to purchase MWD water or increase well production. In either case the additional water cost would be considerably higher than that currently being produced. See Attachment No. 3 for the City's current blended water cost. Therefore, it would be desirable to set a rate such that the Malburg Generating Station would be responsible for all costs associated with providing water to the facility. In this case, recycled water will be provided to the plant. The cost for the City to provide water to the plant is shown in Attachment No. 5. Given the fact that the Malburg Generating Station funded all capital improvements to provide the plant with recycled water, the City could reduce the rates such that they do not reflect the capital cost. Therefore, the rate should either be set at: $0.840 per 100 cubic feet* which does not include a credit for capital improvements, or $0.407 per 100 cubic feet* which includes a credit of $214.34 per acre foot for the capital improvement investment. $0.899 - $0.492 = $0.407 * If Central Basin extends their system such that the Hollydale Pump Station is no longer necessary, a reduction of $20 per acre foot or $0.046 per 100 cubic feet could be provided on the rate. Additionally rates are based on current costs and assumes 1200 acre feet of water to be consumed by Malburg Generating Station annually. Under this scenario the commodity rates would be: Potable Commodity Rate $1.159 Recycled Commodity Rate $0.840 MGS Recycled Water Rate $0.407* * However, it is recommended to keep the recycled water rate at $0.480 for the MGS Power Plant until such time as the City has a history of true water cost including but not limited to energy costs. SCENARIO 2 Under Scenario 2 the City will supply recycled water to its existing customer base. In this case potable customers would be responsible to pay for the cost to supply potable water, while recycled customers would be required to cover all costs to supply recycled water. All customers would continue to be required to pay the square footage charge for fire related services. Under this scenario the use of recycled water will offset the need to purchase imported MWD water, thereby decreasing the cost of providing potable water to its customers. See Attachment Nos. 3 and 5 for blended water cost for potable water. The cost of the water itself will be reduced from $307.64 per acre-foot to $280.12 per acre-foot. This will result in a savings of $291,732.00 to potable customers. It is assumed that all other costs going to the potable rate including overhead, supplies, capital costs, depreciation, etc. will remain. The current proposed potable water rate is $1.159 per 100 cubic feet. The savings or additional costs would be applied against the potable commodity charge. The City's formula for calculating potable commodity charge is: Potable Commodity Charge = (0.5x — 0.632y + z) A x = Commodity Labor Costs y = Projected Construction Related Revenues z = Commodity Non -Labor Costs A = Projected Water Sales in 100 cubic feet Utilizing the costs from the City's last rate study and reducing the amount of MWD water purchased and water sales by 1500 acre feet: x = $1,445,700 x� = Commodity Labor Cost — Commodity Labor Cost assigned to recycled water x� _ $1,445,700 - $36,039.08 = $1,409,660.92 y = $178,000 z = $4,556,640 z. = Commodity Non -Labor Cost less Reduction in MWD Water Purchases z, _ $4,556,640 - $498 (1500) _ $3,809,640 A = 10,211 of —1500 of = 8711 of x 435.6 = 3,794,511.60 per 100 cubic feet Commodity Charge = .50409660.92) - .632(178000) + 3809640 3794511.6 Potable Water Rate = $1.160 per 100 cubic feet Given the proposed potable rate is $1.159 per 100 cubic feet the total loss to potable customers would be: ($1.159 - $1.160)(3794511.6) _ -$3794 The recycled water rate would be $0.840 per 100 cubic feet. See Attachment No. 5 for calculation. The recycled water rate could be reduced by $0.161 if the City were no longer required to pay for the operation cost of the Hollydale Pump Station when Central Basin extends the recycled water line, resulting in a recycled water rate of $0.679 or approximately 58.5% of the potable rate of $1.160, under this scenario the commodity rates would be: Potable Commodity Rate $1.160 Recycled Commodity Rate $0.840 SCENARIO 3 Under this scenario the rate for potable water would be set as if no recycled water were available. In this case it is assumed that 1500 acre feet of recycled water will be served to Vernon's existing customer base in lieu of potable water and 1200 acre-feet delivered to the Malburg Generating Station. The cost of water to the City will be reduced because it can purchase recycled water at a cost of $300.63 per acre foot instead of MWD water at a rate of $498 per acre feet. See Attachment No. 2. All savings realized would go into the recycled water rate. The potable rate would remain unaffected and be maintained at its current rate of $1.159 per 100 cubic feet. As can be seen in Attachment No. 4 the City will save approximately $296,055 by purchasing recycled water in lieu of MWD water. However, the cost of water is only a component in the commodity rate structure. Personnel will continue to be needed to maintain the Water Departments' assets including system maintenance, meter reading, providing operational control of the system, water sampling, etc. Fixed costs and overhead will all remain, yet the amount of customers paying for these fixed costs will be reduced by 1500 acre feet. Therefore as established in Scenario 2 the difference in utilizing recycled water in lieu of MWD water is $3,794. Rather than these losses raising the potable rate, this scenario would contemplate holding the potable commodity rate firm at $1.159 per 100 cubic feet and redirect the losses to adjust the cost of recycled water. Sufficient funds must be collected to cover all costs. Therefore, the potable and water rates should be established to cover all costs (see Scenario 2 and Attachment No. 5). Potable Potable Recycled water water acre rate acre-feet feet Total Costs = [(9100 x 1.160) + (1500 x 0.840)](435.6) = 5,147,049.60 To calculate recycled rate holding potable rate at $1.159 Potable Potable Recycled water water acre rate acre-feet feet Total Costs = [(9100 x 1.159) + (1500 x z)](435.6) = 5,147,049.60 Recycled Rate = z = 0.846 Check of Savings (1.159-1.160)(9100)(435.6) x (0.840-0.846)(1500)(435.6) -3,963 x -3,920 Recycled water rate may be further reduced by 0.161if City is no longer responsible for Hollydale operation costs. Potable Commodity Rate $1.159 Recycled Commodity Rate $0.846 CLOSING DISCUSSION These proposed recycled water rates are calculated using the City's best estimate. Under Scenarios 2 and 3 a distribution system would have to be constructed throughout the City to deliver water to recycled water customers. The cost of this distribution could be significantly different than the cost to deliver water to the Malburg Generating Station. A pump station may or may not be needed to deliver water to the customer base. Additionally if Central Basin extends their backbone system through Commerce and Montebello to a new sanitation district connection, the City in accordance with the City's contract with Central Basin the City would not be required to pay the operating cost for the Hollydale Pump Station which would yield significant savings to Vernon recycled water customers. With this stated, until a distribution network is laid out in Vernon, the true capital costs cannot be calculated and therefore the rates presented in this report could significantly change. Until such time that the recycled water is extended the rate structure for recycled water customers should be based on Scenario 3 with the exception of recycled water sold to the Malburg Generating Station which is based on Scenario 1, less the capital cost investment made by the Power Plant to extend the recycle line to the Plant. Proposed Potable Rate $1.159 per 100 cubic feet Non-MGS Customer Recycled Water Rate $0.846 per 100 cubic feet MGS Recycled Water Rate $0.480 per 100 cubic feet ATTACHMENT NO.1 Recycled Water Cost Central Basin Municipal Water District Recycled Water Rates Volume Current *Proposed Proposed Acre -Feet Rate Per Increase Per Rate Per Per Month Acre -Foot Acre -Foot Acre Foot 0-25 $308 $6.16 $314.6 25-50 $286 $5.72 $291.72 50-100 $266 $5.32 $271.32 100+ $244 $4.88 $248.88 * Central Basin has verbally advised that they anticipate a 4% increase in recycled water rates beginning January 1, 2007. Therefore Fiscal Year 2006-2007 will have an average 2% increase. Based on 1200 acre-feet a year to supply Malburg Generating Station. Volume Quantity Rate Total Acre -Feet in Acre -Feet per Acre - Per Month Foot 0-25 25 $314.16 $7854 25-50 25 $291.72 $7293 50-100 50 $271.32 $13566 100+ 0. $248.88 $0 $28713 Average Cost per Acre -Foot $287.13 Based on Malburg Generating Station consuming 1200 acre-feet per year and other City customers consuming 1500 acre-feet per year. Volume Quantity Rate Total Acre -Feet in Acre -Feet per Acre - Per Month Foot 0-25 25 $314.16 $7854 25-50 25 $291.72 $7293 50-100 50 $271.32 $13566 100+ 125 $248.88 $31110 $59823 Average Cost per Acre -Foot $265.88 ATTACHMENT NO.2 Cost of Water Comparison Well Water Pump Assessment $145 Pumping O & M $102 $247 per acre foot Leased Well Water Lease Cost $245 Pump Assessment $145 Pumping O & M $102 $492 per acre foot MWD Water CBMWD Tier 1 Rate $498.00 per acre foot Recycled Water (1200 acre feet purchased) Pump Station Annual Cost $118.86 Pump Station Operation Cost $ 20.00 Pipeline Annual Cost $167.39 USBR Grant ($71.50) Recycled Commodity Charge $287.13 Central Basin Rebate ($200.00) $321.88 per acre foot Recycled Water (2700 acre feet purchased Pump Station Annual Cost $118.86 Pump Station Operation Cost $ 20.00 Pipeline Annual Cost $167.39 USBR Grant ($71.50) Recycled Commodity Charge $265.88 Central Basin Rebate ($200.00) $300.63 per acre foot ATTACHMENT NO, 3 Blended City Water Costs Tvne Cost Amount Cost of Water MWD $498 2561 $1,275,378 City Pumped $247 8039 $1,985,633 10600 $3,261,011 Blended Cost of Water Per Acre Foot = $307.64 Cost of Water Per 100 Cubic Feet = $0.7062 ATTACHMENT NO.4 Blended Water Costs Utilizing 1500 Acre Feet of Recycled Water In Lieu of MWD Water Assumes 1200 acre-feet will be distributed to Malburg Generating Station annually (see Attachment Nos. 1 and 2). 1200 acre-feet Recycled Distributed Recycled Water Cost Per Acre Foot = $321.88 Cost of Water Per 100 Cubic Feet = $0.7389 2700 acre-feet Recycled Distributed Recycled Water Cost Per Acre Foot = $300.63 Cost of Water Per 100 Cubic Feet = $0.6900 Tyne Cost Amount Cost of Water MWD $498 1061 $528,378 Recycled $300.63 1500 $450,945 City Pumped $247 8039 $1,985,633 Total Cost Per Acre Foot Cost Per 100 Cubic Foot Total Savings to City 10600 = 279.71 per acre foot = 0.642 $3,261,011 $2,964,965 $296,055 Difference in Blended Cost with and without Recycled Water $307.64 - $279.71 = $27.93 per acre foot $2,964,965 ATTACHMENT NO.5 Cost for Recycled Water (based on 1200 acre feet of water purchased) Description Capital Costs Annual Cost Unit Cost Per Acre Foot Hollydale Pump Station' $1,423,000 for 1200 acre-feet $142,639' for 1200 acre-feet $118.86 Pump Station Operation Cost $84,000 $20.00 Vernon Pipeline Extension $2,004,000 $200,877' $167.39 USBR Capital Grant (25%) ($856,000) ($85,803)5 ($71.50) Central Basin Commodity Charge $334,8004 $287.13 Central Basin Capital Rebate ($240,000)4 ($200.00) Depreciation $24,048 $20.04 Department Overhead Costs $22,987 $19.16 City Overhead Allocation $31,363 $26.14 Total Assumptions $387.22 = $0.889 per 100 cubic feet 1) Hollydale Pump costs are $975,650 construction, $100,000 construction management and $323,352 design. 2) Vernon Pipeline Extension costs are $1,494,543 construction, $257,097 construction management and $251,935 design. 3) Pump Station and Pipeline annual costs based on total cost of facility amortized over 14 years at an interest rate of 5.125% compounded monthly. 4) Annual cost of commodity charge and capital rebate is based upon 1200 acre-feet of recycled water user per year. 5) U.S. Bureau of Reclamation will provide a grant for 25% of capital cost of constructing Vernon Pipeline Extension and Hollydale Pump Plant including design and construction management costs. 6) Central Basin will provide a rebate up to a maximum of $200 per acre-foot for all capital costs. 7) Capital credit for 100 acre-feet per month is $211 by formula; capital credit is capped at $200 per acre-feet, so $200 per acre-feet was utilized. 8) Depreciation is based on a straight line depreciation for a 50 year life, City assets only (pipeline within Vernon assumed to be 60% of Vernon pipeline extension cost). 9) Overhead consists of administrative costs, meter reads and maintenance assumes 2% of potable commodity labor and supply costs to maintain recycled water system. 10) Overhead allocation is equal to 6% of income. 11) Pump Station operating costs consist of electrical cost to operate pumps. Cost for Recycled Water Based on 2700 Aare -Feet of Water Purchased The reduction is due to a Central Basin sliding scale on commodity charge Cost per acre-feet = 387.22 — 287.13 + 265.88 Cost per acre-feet = 365.97 = 0.840 NOTICE OF PUBLIC HEARING TO CONSIDER AN INCREASE IN WATER RATES FOR CITY OF VERNON CUSTOMERS The City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 DATE & Wednesday, May 17, 2006 at 5:00 p.m. TIME: (or as soon thereafter as the matter can be heard) PURPOSE: To consider the adoption of a resolution increasing water rates for City of Vernon customers. An adjustment to City water rates to take effect June 1, 2006 is being proposed to cover increasing costs of purchasing and delivering water to the community and to cover the cost of essential maintenance and capitalimprovements to the Vernon water system (see reverse side for proposed water rates). The City last raised its water rates in 2001. A copy of the proposed resolution approving the water rates and 'supporting documents will be available for public review during normal business hours in the Vernon Community Services & Water Department, located at 4305 Santa Fe Avenue, Vernon, California, from March 30, 2006 to May 17, 2006. The public is also invited to submit written comments prior to the hearing. You may submit written comments on the proposed water rates increase until 5:00 p.m. on May 17, 2006. Comments received after that date may not receive full consideration. If you challenge the adoption of the new water rates, you maybe limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. The hearing may be continued or adjourned to a stated time and place without further notice of a public hearing. Dated: 3 " 3,0 -(y, BRI MALKENHORST, JR. Acting City Clerk AFFIDAVIT OF POSTING I, William Wilson, Code Inspector of the City of Vernon, do hereby certify that I did, on the 30t' day of March 2006, post three (3) copies of: NOTICE OF PUBLIC HEARING, to be held on May 17, 2006 (see attached copy) to consider the adoption of a resolution increasing water rates for City of Vernon customers. One in each of the following places to wit: At the northwest comer of 38th Street and Santa Fe Avenue; the northeast corner of Leonis Boulevard and Pacific Boulevard; and on the bulletin board located outside on the wall near the second floor entrance to the City Hall of said City, located at 4305 Santa Fe Avenue, all in the City of Vernon, County of Los Angeles, State of California, there being no newspaper of general circulation printed and published in the City of Vernon. Sign: I Y I William Wilson, Code Inspector STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) ss. CITY OF VERNON ) Date: .3i*lofo On March 30, 2006, before me, Manuel Giron, Notary Public, personally appeared William Wilson, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which thUerson acted, executed the instrument. WITNESS my hand and official seal. te�mr 096n- # 1e113" ftY h+bMc - CaM wft C*#" 1J4*"NW4, 20 AFFIDAVIT OF MAILING I, Claudia Arellano, declare as follows: That I am employed in the Community Services & Water Department in the position of Department Secretary. That on March 30, 2006 I mailed a copy of a Notice of Public Hearing to be held on May 17, 2006, to consider an increase in water rates for City of Vernon customers to the interested parties and property owners on the attached list, by United States mail with postage prepaid. Sign: Claudia Arellano STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF VERNON ) Date: 2 eel On March 30, 2006, before me, Manuela Giron, Notary Public, personally appeared Claudia Arellano, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. W rNESS my hand and official seal snrort Co1r "WOn # 161 ) US - CQWornio 1 ITOLos County W CorAm. f trove 4, City of Huntington Park Lucille Roybal-Allard Ray Dippel Planning Department Congresswoman OEHS 6550 Miles Avenue 255 E. Temple St., Ste 1860 L.A. Unified School District Huntington Park, CA 90255 Los Angeles, CA 90012 333 S. Beaudry Avenue, 20`s Floor Los Angeles, CA 90017 L.A. County Board of Supervisors Director of Planning Joseph R. Gan uba Ms. Guiterrez James Herd — Room 1390 California Portland Cement Co. 924 S. Mott Street 320 W. Temple Street Los Angeles, CA 90012 2025 E. Financial Way Glendora, CA 91740 Los Angeles, CA 90023 South Coast Air Quality Mgmt District John Kinas Sidney R. Title 21865 E. Copley Drive Diamond Bar, CA 91765 United States Aluminum 3663 Bandini Boulevard Market Properties, Inc. 5245 Pacific Concourse, Ste 190 Vernon, CA 90023 Los Angeles, CA 90045 Brian Scanlon L.A. County Public Works Gloria Molina H.P. Long Mapping & Property Mgmt. Board of Supervisors Sweetener Products 900 S. Fremont Avenue, 1 Os' Floor 500 W. Temple St., Ste 856 2050 E. 38`h Street Alhambra, CA 91803 Los Angeles, CA 90012 Vernon. CA 90058 City of Commerce Dave Karrker Ellen Orlando Planning Department California Water Service Karen Lehrer 2535 Commerce Way 5243 E. Sheila Street 2300 E. 1 Ph Street Commerce, CA 90040 Commerce, CA 90022 Los Angeles, CA 90021 City of Bell Planning Department J.J. Little J.J. Little Company, Inc. Connie M. Carrasco, President Chem -Tech Systems, Inc. 6330 Pine Street 9945 Malgar Drive g 3650 E. 26 Street Bell, CA 90201 Whittier, CA 90603 Vernon, CA 90023 City of Cudahy L.R. Luppen City of Long Beach Planning Department Metal Products Engineering Office of the City Manager 5220 Santa Ana Street 3050 Leonis Boulevard 333 W. Ocean Blvd., 136'floor Cudahy, CA 90201 Vernon, CA 90058 Long Beach, CA 90802 L.A. County Sanitation District Elkay Plastics Company, Inc. Bernard Huberman or Daniel P.O. Box 4998 Attn: Brent P. Chappell Rosenthal BLT Enterprises Whittier, CA 90607 P.O. B ox 23008 2201 E. Washington Blvd. Vernon, CA 90023 Los Angeles, CA 90021 City of Maywood Planning DepartmentOwens-Brockway Marisa Olguin Chamber of Commerce E•J. Contreras 4319 Slauson Avenue 3801 Santa Fe Avenue Vernon, CA 90058 2901 Fruitland Avenue Maywood, CA 90270 Vernon, CA 90058 Suk Chon Robert J. Niccum County of Los Angeles James H. Hillands L.A. Unified School District Department of Public Works Heger Realty Corp. 1425 S. San Pedro St., Rm 101 Land Development Division 5657 E. Washington Blvd. Los Angeles, CA 90015 P.Q. 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