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Resolution No. 93291 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. 9329 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, Samuel Kevin Wilson, Director of Community Services and Water, has recommended that the rates established for water services be raised effective August 1, 2007, 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 mailed notice of a meeting on new or increased fees or service lcharges; and WHEREAS, the City Council of the City of Vernon held on July 16, 2007, 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 laccordance with the Vernon City Code. 1 2 3 4 51 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 August 1, 2007. SECTION 4: The 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. City Clerk APPROVED AND ADOPTED this 16th day of July 2007. L ONLS C. MALtVRG, Ddayor - 2 1 STATE OF CALIFORNIA ) 2 ss COUNTY OF LOS ANGELES ) 3 4 I, Manuela Giron, City Clerk of the City of Vernon, do hereby 5 certify that the foregoing Resolution, being Resolution No. 9329, was 6 duly adopted by the City Council of the City of Vernon at a regular 7 meeting of the City Council duly held on Monday, July 16, 2007 and 8 thereafter was duly signed by the Mayor of the City of Vernon. 9 10 anuela Gir 11 City Clerk 12 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 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 "A" Water Rates For The City of Vernon Water System Effective August 1, 2007 1. Monthly Charge For Meters (V.C.C. Sec. 25.2): Meter Size Monthly.Minimum Charge 5/8" $ 6.61 %" 9.91 1" 16.52 1 33.05 2" 52.88 3" 99.15 4" 165.25 6" 330.50 8" 528.80 2. Water Consumption Rates Per 100 Cubic Feet (V.C.C. Sec. 25.3): For water used: $1.159/100 cubic feet 3. Standby Service Meter Charge (V.C.C. Sec. 25.3): Meter Minimum Monthly Consumption Size Allowance For Standby Service Monthly Charge 2" 6,000 cubic feet per month $ 122.42 3" 15,000 cubic feet per month 273.00 4" 30,000 cubic feet per month 512.95 6" 75,000 cubic feet per month 1,199.75 8" 150,000 cubic feet per month 2,267.30 The charge for water in excess of the monthly consumption allowance shall be the rate per cubic foot. r�� 1 9. s Rates for Retail Water Business (V.C.C. Sec. 25.8) R (each 2 person, firm or corporation): 3 The rate shall be one and one-half times the meter charge and 4 the water consumption rate set forth in Sections 1 and 2 of 5 Exhibit A. 6 10. Water Rates per 100 Cubic Feet of Reclaimed Water (V.C.C. 7 Sec. 25.9) (each person, firm or corporation): 8 Malburg Generating Station $0.480/100 cubic feet 9 until January 1, 2019 10 Reclaimed water: $0.846/100 cubic feet 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A - 3 SUPPORTING DOCUMENTS it -, A COMMUNITY SERVICES & WATER DEPARTMENT Samuel Kevin Wilson, Director of Community Services & Water 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 Fax (323) 826-1435 May 24, 2007 Honorable City Council City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Dear Honorable Mayor and City Councilmen: W-12 The Community Services and Water Department has prepared an Engineer's Report on the potable water rate increase and Recycled Water Study, copies of which are enclosed herewith. Due to the increasing cost of purchasing and delivering water and the need to expend capital on essential maintenance and improvements to the water system an increase was recommended. In order to reduce the initial impact of the rate increase for City customers, the increase was implemented in two Phases. The first phase of the increase was implemented on June 1, 2006. It is recommended that the Phase 11 rate increase contained in the Engineer's Report be approved and the rate increase take effect August 1, 2007, a public hearing on the rate increase is scheduled for the July 16, 2007 City Council meeting. Resolution No. 9329 pertaining to the rate increase should be considered at the same meeting. Thank you. SKW/sr/ca Enclosures c: 0 :emu, Jeff Harrison Nelly Giron Respec bmitted, f muel Kevin Wilson, P.E. Director of Community Services & Water EXcfusivefy In"stfiaf 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 & Monday, July 16; 2007 at 10:00 a.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 August 1, 2007 is being proposed to cover increasing costs of purchasing and delivering water to the community and to cover the cost of essential maintenance and capital improvements to the Vernon water system (see reverse side for proposed water rates). The City last raised its water rates in 2006. 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. 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 10:00 a.m. on July 16, 2007. Comments received after that date may not receive full consideration. If you challenge the adoption of the new water rates, you may be 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: 1 �q7 anuela Giron City Clerk r � i 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 RESOLUTION NO. 9329 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, Samuel Kevin Wilson, Director of Community Services and Water, has recommended that the rates established for water services be raised effective August 1, 2007, 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 mailed notice of a meeting on new or increased fees or service charges; and WHEREAS, the City Council of the City of Vernon held on July 16, 2007, 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. ri 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 August 1, 2007. SECTION 4: The 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 16th day of July 2007. ATTEST: Manuela Giron City Clerk LEONIS C. MALBURG, Mayor - 2 - 9 r t 1 STATE OF CALIFORNIA ) ss 2 COUNTY OF LOS ANGELES ) 3 4 I, Manuela Giron, City Clerk of the City of Vernon, do hereby 5 certify that the foregoing Resolution, being Resolution No. 9329, was 6 duly adopted by the City Council of the City of Vernon at a regular 7 meeting of the City Council duly held on Monday, July 16, 2007 and 8 thereafter was duly signed by the Mayor of the City of Vernon. 9 10 Manuela Giron 11 City Clerk 12 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 - 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 "A" Water Rates For The City of Vernon Water System Effective Auqust 1, 2007 1. Monthly Charge For Meters (V.C.C. Sec. 25.2): Meter Size Monthly Minimum Charge 5/8" $ 6.61 %" 9.91 1" 16.52 1" 33.05 2" 52.88 3" 99.15 4" 165.25 6" 330.50 8" 528.80 2. Water Consumption Rates Per 100 Cubic Feet (V.C.C. Sec. 25.3): For water used: $1.159/100 cubic feet 3. Standby Service Meter Charge (V.C.C. Sec. 25.3): Meter Minimum Monthly Consumption Size Allowance For Standby Service Monthly Charge 2" 6,000 cubic feet per month $ 122.42 3" 15,000 cubic feet per month 273.00 4" 30,000 cubic feet per month 512.95 '... 6" 75,000 cubic feet per month 1,199.75 8" 150,000 cubic feet per month 2,267.30 The charge for water in excess of the monthly consumption allowance shall be the rate per cubic foot. A - 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2.4 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 10" 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. S. Minimum Rates for Unmetered Service for Fire Protection Purposes W.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: $0.00337 per square foot. 7. Minimum Charge for Temporary Installation and Relocation (V.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 1 9. Rates for Retail Water Business (V.C.C. Sec. 25.8) (each 2 person, firm or corporation): 3 The rate shall be one and one-half times the meter charge and 4 the water consumption rate set forth in Sections l and 2 of 5 Exhibit A. 6 10. Water Rates per 100 Cubic Feet of Reclaimed Water (V.C.C. 7 Sec. 25.9) (each person, firm or corporation): 8 Malburg Generating Station $0.480/100 cubic feet 9 until January 1, 2019 10 Reclaimed water: $0.846/100 cubic feet 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A 3 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-feetlyear 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 l 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. i N T TABLE 1 WATER COSTS PER ACRE-FOOT 2001 12002 12003 1200412005 2006 MWD Non Interruptible $478 1$478 $457 $467 $489 $498 WRD Pump Assessment Fee $112 1 $112 $117.60 $115 1 $128.25 $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 + 10.4% 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. 2 i A TABLE 3 PROJECTED OPERATING BUDGET FOR THE WATER DEPARTMENT XPENDITURE COMPONENT 2001- 2002 Percent Increase Projected - 2005 - 2006 SALARIES 1101 REGULAR $1017,321 17.96% $100 000 1102 OVERTIME $10,000 50% $15,000 1103 CASUAL 0 0 0 SUB TOTAL ENEFITS $1027 21 1&3% $1215 000 120 RETIREMENT $70,000 57.14% $110,000 130 GROUP INSURANCE $73 050 84.81% $135,000 140 UNEMPLOYMENT $5 922 1.320/9 $6,000 150 WORKER'S COMPENSATION $31,320 -52.11% $15,000 160 AUTO INSURANCE $4,935 11.45% $5,500 170 MEDICARE $3,500 171.43% $9,500 SUB TOT SUPPLIES AND OTHER SERVICES $188 727 4&89% $281000 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 $I0,000 20.00% $12,000 5230IN-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% $1,000 600 UTILITIES & COMMUNICATIONS $675,000 -2.22% $660 000 5700 VEHICLE LEASE $53,000 107.55% $110,000 5800 AUTOMOBILE ALLOWANCE 0 0 0 5900 BLDG & E UIPMENT 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 ADMW EXPENSE TRANSFER $60,000 800.00% $540,000 SUB TOTAL 4 995 467 -4.09% $4 791000 3 I ♦ t EQUIPMENT OUTLAY 400 AUTOMOBILE $76,000 11.84% $85,000 8500 NON -AUTO $132,258 51.22% $200,000 SUB TOT APITAL OUTLAY $208 8 36.85% $285 000 9000CAPUALPROJECTS $515,500 93.99% $1000,000 000 ALLOWANCE FOR BAD DEBT $50 000 $0 SUB TOT EPARTMENT TOTAL $56 500 $6985,273 1 76."% 13.41 % 1 $1,000,000 $7,922,000 55120 Purchased Water $1,450,000.00 v 0 0 $1 450,000.00 55200 Department Su lies $250 000.00 $92 000.00 $158,000.00 0 55210 Water Treatment $15,000.00 $5,520.00 0 $9,480.00 Acct 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 Uniforms $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 EquipmentMaintenance $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 88400 Sub Total Automobile $4 791000.00 $85,000.00 $551 632.00 $42,500.00 $500,228.00 $0.00 $3 739,140.00 $42,500.00 88500 Non -Automobile $200,000.00 $100,000.00 0 $100,000.00 Aect No. Sub Total I Section $285 000.00 R nested Bud et $142 500.00 Fire Related Costs 0 Commodi .: Labor $142,500.00 Commodity -'Non Labor 99000 Capital Projects $1,000,000.00 $500,000.00 0 $500,000.00 Sub Total $1,000,000.00 Total $500,000.00 Total % of Budget in $ $0.00 Total % of Budget in $ $500 000.00 Total % of Budget in $ $7 922 000.00 1 $1,919,660.00 $1445 700.00 1$4 S56 640.00 3 . } 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 f A f 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 H. 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. N. 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 II 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 Y' 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 2L31. Phase I - For water used 1.093/100 Cubic Feet Phase R - For water used 1.159/100 Cubic Feet 3. MINIMUM RATES FOR METERS FOR FIRE RELATED SERVICES (V C 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. 9 4. MINIMUM RATES FOR UNMETERED SERVICE FOR FIRE PROTECTION PURPOSES (V.C.C. SECTION 25.4): For Phase I and II Monthly charge for sprinkler head: $0.25/head. 5. MONTHLY. SQUARE FOOT CHARGE (V 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 H - 0.00337 per square foot 6. STAND-BY METER CHARGE (V 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" 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 Charge 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 1.6" 330.50 75,000 cubic feet per month 1,199.75 8" 528.80 150,000 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 (V.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 11 The rate shall be one and one half times the meter charge and the consumption rate set forth in Subsections 1 and 2. APPENDIX H Costs calculated to meet 2005-2006 budget costs, which will ultimately be recovered in Phase II rates SERVICE CHARGE CALCULATION PHASE II Tahlo C Meter Size Number of Meters Capacity Factor Number of Meters Capacity Factor 5/8" 25 1 25 3/a" 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 S = Standby Revenues R = Hydrant Meter Revenues X—(S+R)=B B = Adjusted Commodity Related Labor Expense = $1,445,700.00 = $12,266.38 = $7,045.19 = $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 Tahlp 6 Meter Size (Z)(X) Factor Proposed Monthly Meter Charge Present Meter Charge 6.61 x 1 6.61 3.65 3/4' 6.61 x 1.5 9.91 5.63 12, 6.61 x 2.5 16.52 938 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 = (.5B - .632 C + M _ A _ (.5)1,426,388.43 - .632 (178,000) + 4,556,640.00 4447911.6 Proposed Commodity Charge $1.159/100 C.F. Current Commodity Charge = $1.027/100 C.F. (12.9 percent Increase) 12 SQUARE FOOTAGE CHARGE CALCULATIONS — PHASE H 36.8% of Construction Related Revenues Assigned As Credit to Fire Related Cost U = Fire Related Costs = 1,919,660.00 V = Metered Fire Service Revenues = 22,313.85 U—V=T T = Adjusted Fire Related Costs 1,897,346.20 S = Projected Construction Related Revenues=178,000 R = Total Square Feet in Service Area = 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 Tahla 7 Meter Size (Z)(X) Factor Proposed Charges Phase I Present Meter Charge Proposed Charges Phase H 5/8" 6.90 x 1 5.13 3.65 6.61 3/a" 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" 6.9.0 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 H = $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 1I PROJECTED REVENUES 2006 Projected Revenues: Meter Revenues: $713,194.22 Standby Meter Revenues: $12,266.38 TempoTMp2Lag 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: $71,9229000.00 15 0 o w bo ���,1, w cC► cCo � ,� C' 0o ro d► :9 !2 14 !2 0 0 0 o c o c o 0 o io io c+ o 0 o c o 0 0 0 C2J rb A O� r O� N 00 00 A A N N A DD 00 O% C� _ s p z s O b W O O 'o b W W O b lot d .�.. O O W r1 00 O O oo w w 6 O p w ao 00 O 00 J C O 'J O G0. 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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. M SCENARIO 1 - New Water Customers Requiring 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: $0.865 per 100 cubic feet* which does not include a credit for capital improvements, or $0.423 per 100 cubic feet* which includes a credit of $214.75 per acre foot for the capital improvement investment. $0.9156 - $0.493 = $0.423 * 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 $0.865 MGS Recycled Water Rate $0.423* NOTE: Since the recycled water is a relatively new system the City continues to collect data and experience on the cost to produce water and maintain the system and the water volumes sold. Therefore it is recommended that the current rate of $0.480 per hundred cubic feet be kept until such time as sufficient data is collected to determine the actual cost to operate the system is determined. 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 ($376.76 per acre-foot see Attachment 5). 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 No. 3 for blended water cost for potable water. The cost of potable water will be reduced from $288.38 per acre-foot to $249.38 per acre-foot. This will result in a savings of $354,900.00 to potable customers. However, it is assumed that all other fixed costs going to the potable rate including overhead, supplies, capital costs, depreciation, etc. will remain. While the cost of water will be reduced, there will be no reduction in the fixed costs. The volume of water sales will be reduced by the amount of recycle water sold thereby possibly offsetting the savings in water costs. The current proposed potable water rate is $1.159 per 100 cubic feet. The City's formula for calculating potable commodity charge is: Potable Commodity Charge = LO.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 2006 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 - $22,987.00 = $1,422,713.00 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 - 100 cubic feet Commodity Charge = _.5(1422713) - .632(178000) + 3809640 3794511.6 Potable Water Rate = $1.162 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 - $1.162)(3794511.6) _-$10,661.50 The recycled water rate would be $0.8649 per 100 cubic feet. See Attachment No. 5 for calculation. The recycled water rate could be reduced by $0.046 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 $0.819. Under this scenario the commodity rates would be: Potable Commodity Rate $1.162 Recycled Commodity Rate $0.865 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 $311.42 per acre foot instead of MWD water at a rate of $525 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 $320,370 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-$10,661. 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 coverall costs (see Scenario 2 and Attachment No. 5). Potable Potable Recycled water water acre rate acre-feet feet Total Costs = [(9100 x 1.162) + (1500 x 0.865)](435.6) = 5,171,312.50 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) = 5,171,312.50 Recycled Rate = z = 0.883 Check of Savings (1 .159-1.162)(9100)(43 5.6) - (0.865-0.883)(1500)(435.6) -11,891 --11,761 Recycled water rate may be further reduced by $0.046 if City is no longer responsible for Hollydale Pump Station operation costs. Under this scenario the proposed rates would be: Potable Commodity Rate $1.159 Recycled Commodity Rate $0.883 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 line 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 water rates: Proposed Potable Rate Non-MGS Customer Recycled Water Rate MGS Recycled Water Rate $1.159 per 100 cubic feet $0.846 per 100 cubic feet $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 $317 $10.00 $327 25-50 $295 $9.00 $304 50-100 $274 $8.00 $282 100+ $251 $8.00 $259 * 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 $327 $8175 25-50 25 $304 $7600 50-100 50 $282 $14100 100+ 0 $259 $0 $29875 Average Cost per Acre -Foot $298.75 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 $327 $8175 25-50 25 $304 $7600 50-100 50 $282 $14100 100+ 125 $259 $32375 $62250 Average Cost per Acre -Foot $276.67 ATTACHMENT NO.2 Cost of Water Comparison Well Water Pump Assessment $138 Pumping O & M $75 $213 per acre foot Leased Well Water Lease Cost $250 Pump Assessment $138 Pumping O & M $75 $463 per acre foot MWD Water CBMWD Tier l Rate $525.00 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 $298.75 Central Basin Rebate ($200..00) $333.50 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 $276.67 Central Basin Rebate ($200.00) $311.42 per acre foot M ATTACHMENT NO.3 Blended City Water Costs Type Cost Amount Cost of Water MWD $525 2561 $1,344,525 City Pumped $213 8039 $1,712,307 10600 $3,056,832 Blended Cost of Water Per Acre Foot = $288.38 Cost of Water Per 100 Cubic Feet = $0.662 Blended cost of potable water if 1500 acre feet of recycle water sold thereby reducing potable sales by 1500 acre feet. Type Cost Amount Cost of Water MWD $525 1061 $557,025 City Pumped $213 8039 $1,712,307 9100 $2,269,332 Blended Cost of Water Per Acre Foot = $249.38 Cost of Water Per 100 Cubic Feet = $0.5725 Water cost savings to potable customers (288.38 — 249.38)9100 = 354,900 1 ♦ � 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 = $333.50 Cost of Water Per 100 Cubic Feet = $0.7656 2700 acre-feet Recycled Distributed Recycled Water Cost Per Acre Foot = $311.42 Cost of Water Per 100 Cubic Feet = $0.7149 Type Cost Amount Cost of Water MWD $525 1061 $557,025 Recycled $311.42 1500 $467,130 City Pumped $213 8039 $1,712,307 10600 $2,736,462 Total Cost Per Acre Foot Cost Per 100 Cubic Foot Total Savings to City = 258.16 per acre foot = 0.5926 $3,056,832 $2,736,462 $320,370 Difference in Blended Cost with and without Recycled Water $288.38 - $258.16 = $30.22 per acre foot y t • 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 Pump Station Operation Cost Vernon Pipeline Extension $2,004,000 USBR Capital Grant (25%) ($856,000) Central Basin Commodity Charge Central Basin Capital Rebate6 Depreciation Department Overhead Costs City Overhead Allocation Total Assumptions $142,6393 $118.86 $84,000 $20.00 $200,8773 $167.39 ($85,803)5 ($71.50) $358,5004 $298.75 ($240,000)4 ($200.00) $24,048 $20.04 $22,987 $19.16 $31,363 $26.14 $398.84 = $0.9156 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 approximately 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 Acre -Feet of Water Purchased The reduction is due to a Central Basin sliding scale on commodity charge Cost per acre-feet = 398.84 — 298.75 + 276.67 Cost per acre-feet = 376.76 = 0.865 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 & Monday, July 16, 2007 at 10:00 a.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 August 1, 2007 is being proposed to cover increasing costs of purchasing and delivering water to the community and to cover the cost of essential maintenance and capital improvements to the Vernon water system (see reverse side for proposed water rates). The City last raised its water rates in 2006. 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. 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 10:00 a.m. on July 16, 2007. Comments received after that date may not receive full consideration. If you challenge the adoption of the new water rates, you may be 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: anuela Giron City Clerk The City of Vernon is proposing to increase water rates due to the increasing costs of purchasing and delivering water and the need to expend capital on essential maintenance and improvements to the Vernon water system. The City conducted a rate study in 1995 to formulate a rate structure for Vernon customers. This study continues to be valid and is the basis utilized in computing the proposed water rates. The following is a comparison of existing and proposed rates. If approved, the rate increase is proposed to take effect August 1, 2007. 1) Monthly charges for meters Meter Size Existing Rate Proposed Rate 5/8" $5.13 $6.61 3�4" $7.77 $9.91 1" $12.99 $16.52 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 consumption rates per 100 cubic feet Existing rate - $1.093 Proposed rate - $1.159 3) Minimum rates for meters for fire related services for 4", 6", 8" and 10" meter sizes Existing rate - $2.00 Proposed rate - $2.00 The charge for all water used shall be at the consumption rate shown in Section 2 and shall be payable semi-annually. 4) Minimum rates for unmetered services for fire protection purposes Monthly charge for sprinkler head Existing rate - $0.25/head Proposed rate - $0.25/head 5) Monthly square footage charge per square foot of building or outside storage Existing rate - $0.00291/square foot Proposed rate - $0.00337/square foot 6) Standby meter charge Meter Size Existing and Proposed Existing Minimum Proposed Minimum Minimum Monthly Allowance Monthly Charge Monthly Charge 2" 6000 cf/month $107.04 $122.42 3" 15000 cf/month $241.68 $273.00 4" 30000 cf/month $457.45 $512.95 6" 75000 cf/month $1,078.85 $1,199.75 8" 150000 cf/month $2,054.06 $2,267.30 The charge for water rates in excess of the monthly consumption allowance shall be at the water consumption rate as shown in Section 2. 7) Minimum charge for temporary meter installation and relocation Existing Rate Proposed Rate Initial Temporary Installation $200.00 $200.00 Relocation of Said Service $50.00 $50.00 Water fin-nished through said temporary connection shall be at a rate of one and one half times the consumption rate shown in Section 2. 8) Bond deposit for temporary meter Existing rate - $500.00 Proposed rate - $500.00 9) Rates for retail water businesses Existing and Proposed rates is one and one half times the meter charge and the consumption rate set forth in Sections 1 and 2 10) Water rates per 100 cubic feet of recycled water Existing Rate Proposed Rate Malburg Generating Station $0.480/100 cf No Change until January 1, 2019 All other customers $0.846/100 cf No Change `� pF VERJ- '1 a Ioti 'rO 4Z " sa `VFL7 INOJ COMMUNITY SERVICES & WATER DEPARTMENT OFFICE MEMORANDUM W-12 TO: Manuela Giron, City Clerk FROM: Samuel Kevin Wilson" ;director of Community Services & Water DATE: May 23, 2007 SUBJECT: PUBLIC HEARING — WATER RATE INCREASE The Community Services and Wat epartment-is proposing an increase in water rates. It is recommended that a public hearing be se or July 16, 2007 tareceive public comments on the proposed rate increase. I obtained approval from the Ci�iistrateH proceed with said matter. Please sign the enclosed Public Hearing Notice so we may post and mail. Thank you. SKW/ca Enclosure AFFIDAVIT OF POSTING I, William Wilson, Code Inspector of the City of Vernon, do hereby certify that I did, on the 24th day of May 2007, post three (3) copies of: NOTICE OF PUBLIC HEARING, to be held on July 16, 2007 (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 corner 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. J�L- Sign: JU" William Wilson, Code Inspector STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) ss. CITY OF VERNON ) Date: On June 4, 2007, before me, Manuela Giron, Notary Public, personally appeared William Wilson, personally known to me (or- ka^.,,,, to .ao r the basis of sa sfaetefy e ,iden e) 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 the person acted, executed the instrument. WITNESS my hand and official seal. • Wnkqon # ) 611388 N `tOr Public . Col Angeles County Co+nm. Expires Nov 4, 20[ ,S4 of V'P o�G gRs` '�t'Eir /HDJ 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 May 24, 2007 I mailed, or caused to be mailed, a copy of a Notice of Public Hearing, to consider the adoption of a resolution increasing water rates for City of Vernon customers, to the interested parties 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:/ , 67 On June 4, 2007, 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. S my hand and official seal ' MAN .— 6IRON Commission # 1611388 • `"�Notary Public - California Los Angeles County ��. �A My Comm. Expires Nov A, 201 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 & Monday, July 16, 2007 at 10:00 a.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 August 1, 2007 is being proposed to cover increasing costs of purchasing and delivering water to the community and to cover the cost of essential maintenance and capital improvements to the Vernon water system (see reverse side for proposed water rates). The City last raised its water rates in 2006. 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. 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 10:00 a.m. on July 16, 2007. Comments received after that date may not receive full consideration. If you challenge the adoption of the new water rates, you may be 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:( 2' t ( 0 7 anuela Giron City Clerk The City of Vernon is proposing to increase water rates due to the increasing costs of purchasing and delivering water and the need to expend capital on essential maintenance and improvements to the Vernon water system. The City conducted a rate study in 1995 to formulate a rate structure for Vernon customers. This study continues to be valid and is the basis utilized in computing the proposed water rates. The following is a comparison of existing and proposed rates. If approved, the rate increase is proposed to take effect August 1, 2007. 1) Monthly charges for meters Meter Size Existing Rate Proposed Rate 5/8" $5.13 $6.61 3/q" $7.77 $9.91 1" $12.99 $16.52 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 consumption rates per 100 cubic feet Existing rate - $1.093 Proposed rate - $1.159 3) Minimum rates for meters for fire related services for 4", 6", 8" and 10" meter sizes Existing rate - $2.00 Proposed rate - $2.00 The charge for all water used shall be at the consumption rate shown in Section 2 and shall be payable semi-annually. 4) Minimum rates for unmetered services for fire protection purposes Monthly charge for sprinkler head Existing rate - $0.25/head Proposed rate - $0.25/head 5) Monthly square footage charge per square foot of building or outside storage Existing rate - $0.00291/square foot Proposed rate - $0.00337/square foot 6) Standby meter charge Meter Size Existing and Proposed Minimum Monthly Allowance Existing Minimum Monthly Charge Proposed Minimum Monthly Charge 2" 6000 cf/month $107.04 $122.42 3" 15000 cf/month $241.68 $273.00 4" 30000 cf/month $457.45 $512.95 6" 75000 cf/month $1,078.85 $1,199.75 8" 150000 cf/month $2,054.06 $2,267.30 The charge for water rates in excess of the monthly consumption allowance shall be at the water consumption rate as shown in Section 2. 7) Minimum charge for temporary meter installation and relocation Existing Rate Proposed Rate Initial Temporary Installation $200.00 $200.00 Relocation of Said Service $50.00 $50.00 Water furnished through said temporary connection shall be at a rate of one and one half times the consumption rate shown in Section 2. 8) Bond deposit for temporary meter Existing rate - $500.00 Proposed rate - $500.00 9) Rates for retail water businesses Existing and Proposed rates is one and one half tunes the meter charge and the consumption rate set forth in Sections 1 and 2 10) Water rates per 100 cubic feet of recycled water Existing Rate Proposed Rate Malburg Generating Station $0.480/100 cf No Change until January 1, 2019 All other customers $0.846/100 cf No Change Jam bnd Smudge Free Printing Use Avery@ TEMPLATE 51600 26 CALIFORNIA BAZAR INC 2640 E 45TH ST VERNON, CA 90058 3G INC 2025 E 48TH ST VERNON, CA 90058 7 DAY WHOLESALE 3109 BANDINI BLVD VERNON, CA 90058 7-UP BOTTLING CO 3220 E 26TH ST VERNON, CA 90058 7-UP BOTTLING CO 3220 E 26TH ST VERNON, CA 90058 A & R MANAGEMENT C/O ANTHONY BRENT CORP PO BOX 10235 BEVERLY HILLS, CA 90213 A P S FINISHING INC 3165 SLAUSON AVE VERNON, CA 90058 Al EXPRESS DELIVERY SERVICE 4520 MAYWOOD AVE VERNON, CA 90058 A-AMERICAN SELF STORAGE ALAMEDA STORAGE PRTNERS LLC 11560 TENNESSEE AVE LOS ANGELES, CA 90064 ACE PLEATING & STITCHING 2351 E 49TH ST VERNON, CA 90058 @091S OA U3A%f www.averyxom ® AVER 0 5160® ® 1-800-GO-AVERY 26TH ST INDUSTRIAL PARK 29 INC C/O MERIDIAN GROUP C/O ALEX GAROTIC. t. 11400 W OLYMPIC BLVD STE 860 2920 ROSS ST LOS ANGELES, CA 90064 VERNON, CA 90058 4 YOU APPAREL INC 5353 DOWNEY ASSOCIATES 2944 E 44TH ST C/O MICHAEL L SCHWAB' VERNON, CA 90058 9595 WILSHIRE BLVD #401 BEVERLY HILLS, CA 90212 7 DAY WHOLESALE 7-UP BOTTLING CO 3109 BANDINI BLVD 3220 E 26TH ST VERNON, CA 90058 VERNON, CA 90058 7-UP BOTTLING CO 7-UP BOTTLING CO 3220 E 26TH ST 3220 E 26TH ST VERNON, CA 90058 VERNON, CA 90058 7-UP BOTTLING CO 7-UP BOTTLING CO 3220 E 26TH ST 3220 E 26TH ST VERNON, CA 90058 VERNON, CA 90058 A & R MANAGEMENT A AMERICAN STORAGE MGMNT CC C/O ANTHONY BRENT CORP 11560 TENNESSEE AVE PO BOX 10235 LOS ANGELES, CA 90064 BEVERLY HILLS, CA 90213 A RUDIN INC A S A PRODUCE INC 6062 ALCOA AVE 2680 BONNIE BEACH PL VERNON, CA 90058 VERNON, CA 90058 A-4 MOSHAY INC 6199 MALBURG WAY VERNON, CA 90058 ACADEMIA FURNITURE INDUSTRIES 166 S MANSFIELD AVE LOS ANGELES, CA 90036 ACME DIE CUTTING SERVICE DBA ACME GRAPHIC ARTS FINISHING 6133 MALBURG WY VERNON, CA 90058 AH3"-09-008-1. worAaane-MMM AAARDVARKS ODD ARK INC 2849 LEONIS BLVD VERNON, CA 90058 ACCU GRAPHICS 3846 SANTA FE AVE VERNON, CA 90058 ," ACME DIE CUTTING SEFtICE' DBA ACME GRAPHIC ARC FINISHING 6133 MALBURG WY VERNON, CA 90058 Q0915 Itlaege6 al zaslllin apldea a6e439s a W a6eaanogllue uolssaidwl Jam and Smudge Free Printing t>I� www.avery.com Use Avery® TEMPLATE 51604D ® 1-800-GO-AVERY ACME DIE CUTTING SERVICE ACTA - ALAMEDA CORRIDOR DBA ACME GRAPHIC ARTS FINISHING ONE CIVIC PLAZA - SUITE 350 6133 MALBURG WY VERNON, CA 90058 CARSON, CA 90745 ADART COMPANY ADART COMPANY ATTN: DAVID NELSON ATTN: DAVID NELSON 3260 E 26TH ST 3260 E 26TH ST VERNON, CA 90023 VERNON, CA 90023 ADHESIVE PRODUCTS ADORN APPAREL INC 520 CLEVELAND AVE 2611 SANTA FE AVE ALBANY, CA 94710 VERNON, CA 90058 ADTEC BUSINESS MACHINES ADVANCED MIRROR AND DESIGN INC 5700 SANTA FE AVE PO BOX 50 VERNON, CA 90058 MAYWOOD, CA 90270 AFC HYDRAULIC SEALS AIR PRODUCTS AND CHEMICALS INC 4926 BOYLE AVE PO BOX 25708 VERNON, CA 90058 LEHIGH VALLEY, PA 18002-5708 AIR PRODUCTS AND CHEMICALS INC AIRE-PAK MATLS, DBA PO BOX 25708 NELSON JOEL MARTIN LEHIGH VALLEY, PA 18002-5708 3463 E 26TH ST VERNON, CA 90023 AIRESEARCH L A DIVISION AIRESEARCH L A DIVISION MARCUS ELLINGSON/MS 42-1-80 MARCUS ELLINGSON/MS 42-1-80 2525 190TH ST 2525 190TH ST TORRANCE, CA 90504 TORRANCE, CA 90504 AJ OHANA ENTERPRISE I LLC AJAX FORGE COMPANY 3616 SOTO ST 1956 E 48TH ST VERNON, CA 90058 VERNON, CA 90058 AMERICAN MADE HARDWOOD AKZO NOBEL 4425E 49TH ST PO BOX 91629 VERNON, CA 90058 CLEVELAND, OH 44101 ALAVERN CO, THE 1925E VERNON AVE VERNON, CA 90058 ALBERT'S ORGANICS PO BOX 624 BRIDGEPORT, NJ 8014 'U& AERY® 5160@ ADART COMPANY ATTN: DAVID NELSON 3260 E 26TH ST VERNON, CA 90023. ADAYA ASSET 26TH ST LP C/O MERIDIAN GROUP (HOUSE MTR) 11400 W OLYMPIC BLVD STE 860 LOS ANGELES, CA 90064 ADORO COSMETICS CO 1137 S MAIN ST - LOS ANGELES, CA 90015 ADVENTURES IN SPORTS 2202 ANDERSON ST VERNON, CA 90058 AIR PRODUCTS AND CHEMICALS INC PO BOX 25708 LEHIGH VALLEY, PA 18002-5708 AIRE-PAK MATLS, DBA NELSON JOEL MARTIN 3463 E 26TH ST VERNON, CA 90023 AIRTOUCH CELLULAR PO BOX 182727 COLUMBUIS, OH 43218 AJAX FORGE COMPANY 1956 E 48TH ST VERNON, CA 90058 ALAMEDA CORRIDOR TRANS ONE CIVIC PLAZA DR SUITE 350 CARSON, CA 90745 AL-DAN TRADING LOS ANGELES INC 4401 SOTO ST VERNON, CA 90058 A8]IAV-09-008-1, @091S lljege6 al aasilim @091S @AU3 Nf w03-AJOne- MAAA apldea a6e438s a 1a a6eaanogllue uolssaidwl Jam and Smudge Free Printing Use Avery® TEMPLATE 51600 www.averycom /EVERY® 51600 1-800-GO-AVERY V AL-DAN TRADING LOS ANGELES INC 4401 SOTO ST VERNON, CA 90058 ALJAC ENTERPRISES 4270 MAYWOOD AVE VERNON, CA 90058 K-WORLD ALL 4 FANCY, DBA K-WORLD 4515 E 48TH ST VERNON, CA 90058 ALL SIZE FOAM 4702 E 50TH ST VERNON, CA 90058 ALLIED FEATHER & DOWN CORP 2661 E 46TH ST VERNON, CA 90058 ALLIED VENEER CO INC 4901 FRUITLAND AVE VERNON, CA 90058 ALS PLASTICS ALEX MENDRIN 2677 E 26TH ST VERNON, CA 90058 ALS PLASTICS ALEX MENDRIN 2677 E 26TH ST VERNON, CA 90058 ALTO PRODUCTS CORP ONE ALTO WAY ATMORE, AL 36502 AMERICAN ACTIVEWEAR INC 2807 SANTA FE AVE VERNON, CA 90058 GABRIEL ALDRETE 3378 E 50TH ST VERNON, CA 90058 ALKAM HOME FASHION 5107 DISTRICT BLVD VERNON, CA 90040 ALL AMERICAN MFG CO 2201 E 51 ST ST VERNON, CA 90058 ALL WEST IRON INC 2881 SACO ST VERNON, CA 90058 ALLIED SALES & DISTRIBUTION 2021 E 52ND ST VERNON, CA 90058 ALONA APPAREL INC 4950 E 49TH ST VERNON, CA 90058 ALS PLASTICS ALEX MENDRIN 2677 E 26TH ST VERNON, CA 90058 ALSA CORP, THE 2640 E 37TH ST VERNON, CA 90058 ALUMINUM CO OF AMERICA CIO ALCAN SERVICE CHICAGO 8770 W BRYN MAWR AVE SUITE 09L CHICAGO, IL 60631 AMERICAN COVER DESIGN 26 INC 3130 LEONIS BLVD VERNON, CA 90058 CARLALGEE 3386 E 50TH ST VERNON, CA 90058 ALL 4 FANCY INC 3300 LEONIS BLVD VERNON, CA 90058 ALL BROS WHOLESALE INC 4281 BANDINI BLVD VERNON, CA 90023 ALLIED FEATHER & DOWN CORP 2661 E 46TH ST VERNON, CA 90058 ALLIED SALES & DISTRIBUTION 2021 E 52ND ST VERNON, CA 90058 ALPERT & ALPERT PO BOX 23961 LOS ANGELES, CA 90023 ALS PLASTICS ALEX MENDRIN 2677 E 26TH ST VERNON, CA 90058 WILLIAM KALTHOUSE 3349 FRUITLAND AVE VERNON, CA 90058 AMCOR INDUSTRIES 2141 E 51 ST ST VERNON, CA 90058 AMERICAN D J SUPPLY INC 4295 CHARTER ST VERNON, CA 90058 A13AV-09-008-1, ........ 009LS jjAege6 al zasloin ®09Ls )AU3A%f v ua03Aa8ne-MMM apldea 96eg3gs a;a a6eimocigue uolssaiduil Jam and Smudge Free Pdr>jting www.avery.com Use ►very@ TEMPLATE 51600 1-800-GO-AVERY AMERICAN HI FI IND 26 INC AMERICAN USED CLOTHING 4480 PACIFIC BLVD 2034 E 48TH ST VERNON, CA 90058 VERNON, CA 90058 AMERICOLD LOGISTICS AMERIPRIDE UNIFORM SERVICES PO BOX 30102 ATTENTION: C & I BUILDING COLLEGE STATION, TX 77842 PO BOX 668 MANDAN, ND 58554 AMERIPRIDE UNIFORM SERVICES ATTENTION: C & I BUILDING PO BOX 668 MANDAN, ND 58554 AMRO INDUSTRIES 5527 DISTRICT BLVD VERNON, CA 90040-2817 ANCON MARINE 2250 E DOMINGUEZ ST CARSON, CA 90810 ANDRE COLLECTION 4955 EVERETT CT VERNON, CA 90058 ANGELUS CAN EMPLOYEES FCU PO BOX 58367 VERNON, CA 90058 ANGELUS SANITARY CAN CO VERNON DIVISION 4900 PACIFIC BLVD VERNON, CA 90058 ANGELUS SANITARY CAN CO VERNON DIVISION 4900 PACIFIC BLVD VERNON, CA 90058 ANNS, TRADING CO INC 4461 SANTA FE AVE VERNON, CA 90058 AMIGO PARTNERSHIP C/O CHARLES CAMPBELL 500 CITADEL DR STE 140 COMMERCE, CA 90040 AMTACS IMPORT & EXPORT INC 2211 E 37TH ST VERNON, CA 90058 ANCON MARINE 2250 E DOMINGUEZ ST CARSON, CA 90810 ANGEL BODY IMPORT INC 3690 SANTA FE AVE VERNON, CA 90058 ANGELUS CAN EMPLOYEES FCU PO BOX 58367 VERNON, CA 90058 ANGELUS SANITARY CAN CO VERNON DIVISION 4900 PACIFIC BLVD VERNON, CA 90058 ANGUS CAMPBELL INC 4417 SOTO ST VERNON, CA 90058 ANNS TRADING CO INC 4461 SANTA FE AVE VERNON, CA 90058 V AVERY@ 5160@ AMERICAN WASTE UNLIMITED INC JERRY KOHEN 2550 SOTO ST VERNON, CA 90058 AMERIPRIDE UNIFORM SERVICES ATTENTION: C & I BUILDING PO BOX 668 MANDAN, ND 58554 AMPLE FABRICS INC C/O KERRY TEXTILE INC 3288 VERNON AVE VERNON, CA 90058 AMTACS IMPORT &EXPORT INC 2211 E 37TH ST VERNON, CA 90058 ANDRE COLLECTION 4955 EVERETT CT VERNON, CA 90058 ANGEL PLUS INC 3320 LEONIS BLVD VERNON, CA 90058 ANGELUS SANITARY CAN CO VERNON DIVISION 4900 PACIFIC BLVD VERNON, CA 90058 ANGELUS SANITARY CAN CO VERNON DIVISION 4900 PACIFIC BLVD VERNON, CA 90058 ANNS TRADING CO INC 4461 SANTA FE AVE VERNON, CA 90058 ANNS TRADING CO INC 4461 SANTA FE AVE VERNON, CA 90058 Aa9AV-09-008-L ........ ®091S i!Aege6 al aas!Ilin @09LS ®AU3AV woa-AAane'NVV n apldw a6e439S a }a a6emnoggue uolssaidwi Jam and Smudge Free Printing vw w avery e®m (—j � AVERYO 5160® Use Avery@ TEMPLATE 5160QD 1-800-GO-AVERY V ANNS TRADING CO INC 4461 SANTA FE AVE VERNON, CA 90058 ROBERT C ARGETSINGER PO BOX 803 SUNSET BEACH, CA 90742 ARTDECOR TRADING INC 4432 PACIFIC BLVD VERNON, CA 90058 ASIA PACIFIC TRADING CO INC 5132 ALAMEDA ST VERNON, CA 90058 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 ATLANTIC RESEARCH CORPORATION ATTN: THOMAS DEPICTRO 5731 WELLINGTON RD GAINSVILLE, VA 20155 ARCADIA INC 3225 WASHINGTON BLVD VERNON, CA 90023 AROMA COSMETICS INC 3366 FRUITLAND AVE VERNON, CA 90058 A'S MATCH DYEING CO INC 2522 E 37TH ST VERNON, CA 90058 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&T WIRELESS SERVICES INC REFERENCE: 4415 PACIFIC BLVD PO BOX 182576 COLUMBUS, OH 43218 ATLANTIC RESEARCH CORPORATION ATTN: THOMAS DEPICTRO 5731 WELLINGTON RD GAINSVILLE, VA 20155 ARCADIA INC 3225 WASHINGTON BLVD VERNON, CA 90023 ARSLAN SEWING MACHINE 3520 S MAIN ST LOS ANGELES, CA 90007 A'S MATCH DYEING CO INC 2522 E 37TH ST VERNON, CA 90058 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 AT&SF RY CO PO BOX 30054 COLLEGE STATION, TX 77842 ATLANTIC RESEARCH CORPORATION ATTN: THOMAS DEPICTRO 5731 WELLINGTON RD GAINSVILLE, VA 20155 ATLAS GALVANIZING CO 2639 LEONIS BLVD VERNON, CA 90058 009LS;!jege6 al zaslign 009Ls ®AUSAt Inv WOYAJane-mmm apldea a6ey��s p to a6eaanogflue uassaadwl Jam and Smudge Free Printing www.averycom (�%/�� AAMRY® 51600 Use Avery® TEMPLATE 51600 1-800-GO-AVERY AUL PIPE & TUBING 2701 S BONNIE BEACH PL LOS ANGELES, CA 90023 AWAD MANUFACTURING 2139 E 52ND ST VERNON, CA 90058 BCBG MAX AZRIA GROUP INC ATTN:A/P DESK- UTILITIES BOX 58326-0326 VERNON, CA 90058 BAIFU INTL TRADING CO 3019 BANDINI BLVD VERNON, CA 90058 BAKER COMMODITIES ACCOUNTS PAYABLE 4020 BANDINI BLVD LOS ANGELES, CA 90023 BAKER COMMODITIES ONE MORE TIME DIVISION PO BOX 1240 TEMPLETON, CA 93465 BANDINI SALES INC 3155 BANDINI BLVD VERNON, CA 90058 BANDINI TRUCK TERMINAL 3152 BANDINI BLVD LOS ANGELES, CA 90023 BARGAIN FOOD/KOSHAN INC #79016 ATTN: ACCTS PAYABLE 13658 HAWTHORNE BLVD #400 HAWTHORNE, CA 90250 BARKSDALEINC 3211 FRUITLAND AVE VERNON, CA 90058 AUSTIN TRUCKING INC 4528 BANDINI BLVD VERNON, CA 90058 AWAD MFG INC 5201 SANTA FE AVE VERNON, CA 90058 B & A FURNITURE 5208 SANTA FE AVE VERNON, CA 90058 BAKER COMMODITIES ACCOUNTS PAYABLE 4020 BANDINI BLVD LOS ANGELES, CA 90023 BAKER COMMODITIES ACCOUNTS PAYABLE 4020 BANDINI BLVD LOS ANGELES, CA 90023 BAKER COMMODITIES ACCOUNTS PAYABLE 4020 BANDINI BLVD LOS ANGELES, CA 90023 BANDINI TRUCK TERMINAL 3152 BANDINI BLVD LOS ANGELES, CA 90023 BANGKIT USA INC 2939 BANDINI BLVD VERNON, CA 90023 BARKSDALEINC 3211 FRUITLAND AVE VERNON, CA 90058 BARKSDALEINC 3211 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AVE VERNON, CA 90058 BERDAN HOLDINGS LLC C/O MAGNUM PROPERTIES 2222 E WASHINGTON BLVD LOS ANGELES, CA 90021 V AVERYO s16o® BARRY PERLMAN E 49TH ST LLC 5233 ALCOA AVE VERNON, CA 90058 BASKETS UMLIMITED 11950 SAN VICENTE BLVD LOS ANGELES, CA 90049 BASKETS UNLIMITED 11950 SAN VICENTE BLVD STE 200 LOS ANGELES, CA 90049 BCBG MAX AZRIA GROUP INC ATTN: A/P DESK- UTILITIES BOX 58326-0326 VERNON, CA 90058 BCBG MAX AZRIA GROUP INC ATTN: A/P DESK- UTILITIES BOX 58326-0326 VERNON, CA 90058 BCBG MAX AZRIA GROUP INC ATTN: A/P DESK- UTILITIES BOX 58326-0326 VERNON, CA 90058 BE COOL DBA ATREVETE INC 2055 E 51 ST ST VERNON, CA 90058 BEAUTY SPORTSWEAR INC 3031 BANDINI BLVD VERNON, CA 90058 PATRICK O BENT 2301 LOUELLA AVE VENICE, CA 90291 BERDAN HOLDINGS LLC C/O MAGNUM PROPERTIES 2222 E WASHINGTON BLVD LOS ANGELES, CA 90021 AA3AV-09-009-1 @091S IIjpge6 al zaslllln g091s ®AU3A Vf nqw wo:)-AaaAe-mmm aptdea 86e9as a;a a6eaanogl;ue uolssaidwl Jam and Smudge Free Printing ® www.avery.com ((/�� AVERYO 51600 Use Avery® TEMPLATE 51600 �1-800-GO-AVERY V BERDAN HOLDINGS LLC BERDAN HOLDINGS LLC BERDAN HOLDINGS LLC C/O MAGNUM PROPERTIES C/O MAGNUM PROPERTIES C/O MAGNUM PROPERTIES 2222 E WASHINGTON BLVD 2222 E WASHINGTON BLVD 2222 E WASHINGTON BLVD LOS ANGELES, CA 90021 LOS ANGELES, CA 90021 LOS ANGELES, CA 90021 BERNEY-KARP INC BERNEY-KARP INC BERRY PERLMAN E 49TH ST LLC 3350 E 26TH ST 3350 E 26TH ST 5233 ALCOA AVE LOS ANGELES, CA 90023 LOS ANGELES, CA 90023 VERNON, CA 90058 BEST DEAL IMPORT CORP CALASIA IMPORTS INC BEST MEXICAN FOODS 424 W LEROY AVE 3003 BANDINI BLVD 5401 BOYLE AVE ARCADIA, CA 91007 VERNON, CA 90058 VERNON, CA 90058 BEST ORIENTAL PRODUCE INC BEST PRICE BALLOON INC, DBA BEST WHOLESALE INC 2929 LEONIS BLVD CALIFORNIA BALLOON HOUSE 3051 E 46TH ST VERNON, CA 90058 447 S WALL ST VERNON, CA 90058 LOS ANGELES, CA 90013 BETO'S CUTTING BHART & HARISH INTERNATIONAL BHE INTERNATIONAL INC 2033 VERNON AVE 2856 E 54TH ST 3189 BANDINI BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 BLACK BROS & SON DISTR INC BLACKSTEN INDUSTRIAL BLATT 2454 LLC PO BOX 3307 ELECTRIC CORP 9777 WILSHIRE BLVD STE #520 GLENDALE, CA 91221 5005 SLAUSON AVE BEVERLY HILLS, CA 90212 LOS ANGELES, CA 90040 BLATT REALTY LP BLOOM FAMILY PARTNERSHIP BLUE CULT INC 9777 WILSHIRE BLVD STE #1005 3338 MALT AVE 2305 E 52ND ST BEVERLY HILLS, CA 90210 COMMERCE, CA 90040 VERNON, CA 90058 BLUE CULT INC BLUE GALAXY INC BLUE GALAXY INC 2305 E 52ND ST 2325/2369 E 51ST ST 2325/2369 E 51ST ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 BLUEPRINT CLOTHING CORP BNSF RAILWAY BNSF RAILWAY 2281 E 49TH ST PO BOX 30054 PO BOX 30054 VERNON, CA 90058 COLLEGE STATION, TX 77842 COLLEGE STATION, TX 77842 BNSF RAILWAY BNSF RAILWAY BNSF RAILWAY PO BOX 30054 PO BOX 30054 PO BOX 30054 COLLEGE STATION, TX 77842 COLLEGE STATION, TX 77842 COLLEGE STATION, TX 77842 (� A)13AV-O'9-008-L �� ®09LS 1pecie6 al zasimn o09L5 pAU3AAf v worAaane-mmAn ® apldea 86e4:)8s a;a 96eunogl;ue uolssaidwi Jam and Smudge Free Printing www.averycom AVERYO 5160@ Use Avery® TEMPLATE 51600 �" 1-800-GO-AVERY BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY- IBU PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY - IBU PO BOX 30054 COLLEGE STATION, TX 77842 BODYCOTE-LINDBERG CORPORATION BOHNHOFF LUMBER INC 5001 LBJ FWY - STE 800 3411 E 26TH ST DALLAS, TX 75244 VERNON, CA 90023 BON APPETIT DANISH INC BON APPETIT DANISH INC 4525 DISTRICT BLVD 4525 DISTRICT BLVD VERNON, CA 90058 VERNON, CA 90058 BON APPETIT DANISH INC BON APPETIT DANISH INC 4525 DISTRICT BLVD 4525 DISTRICT BLVD VERNON, CA 90058 VERNON, CA 90058 BORN AGAIN CLOTHING INC BOVANO USA CORP 4949 DISTRICT BLVD 2080 E 25TH ST VERNON, CA 90058 VERNON, CA 90058 INTERNATIONAL PAPER BP WEST COAST PRODUCTS #05573 ATTEN: LUCIA MONTIEL C/O FACILITY IQ -MS 1239 3030 ATLANTIC BLVD PO BOX 2440 VERNON, CA 90058 SPOKANE, WA 99210 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY PO BOX 30054 COLLEGE STATION, TX 77842 BNSF RAILWAY- IBU PO BOX 30054 COLLEGE STATION, TX 77842 BON APPETIT DANISH INC 4525 DISTRICT BLVD VERNON, CA 90058 BON APPETIT DANISH INC 4525 DISTRICT BLVD VERNON, CA 90058 BONANZA MEAT COMPANY INC 2716 VERNON AVE VERNON, CA 90058 INTERNATIONAL PAPER ATTEN: LUCIA MONTIEL 3030 ATLANTIC BLVD VERNON, CA 90058 BRAKE -CO 3840 FRUITLAND AVE VERNON, CA 90058 A83AV-09-008-t ®09tS pAU3ANf n uaoaAaane•MAAM ,g09tS t!ae9e6 al aaslian ap!de.i a6e4:)9s a to 96eaanocigue uoissaAdwi Jam and Smudge Free Printing Use Avery® TEMPLATE 51600 BRAKE -CO 3840 FRUITLAND AVE VERNON, CA 90058 BRISTAR INC 4420 DISTRICT BLVD VERNON, CA 90058 BRUNNER & LAY INC ATTN:JEFF PO BOX 1190 SPRINGDALE, AR 72765 C&HMEAT CO YOUNG YOO 3017 BANDINI BLVD VERNON, CA 90058 C & P PACIFIC 6063 MALBURG WY VERNON, CA 90058 C H TRADING INC 2828 LEONIS`BLVD VERNON, CA 90058 C R LAURENCE CO INC PO BOX 58923 VERNON, CA 90058 C R LAURENCE CO INC PO BOX 58923 VERNON, CA 90058 C W S INDUSTRIES 3346 LEONIS BLVD VERNON, CA 90058 CALIF COMBINING CORP 5607 SANTA FE AVE VERNON, CA 90058 wvm.avery/,Com 1-800-GO-AVERY BRAND LAB INC 4355 FRUITLAND AVE VERNON, CA 90058 BRISTAR INC 4420 DISTRICT BLVD VERNON, CA 90058 VICTOR BRUNO ET AL 2639 LEONIS BLVD VERNON, CA 90058 C & H SENDOUTS INC 2350 E 38TH ST VERNON, CA 90058 CCI 3540 E 26TH ST VERNON, CA 90058 C JAM INDUSTRIES 2266 E 38TH ST VERNON, CA 90058 C R LAURENCE CO INC PO BOX 58923 VERNON, CA 90058 C S AMERICA 4309 EXCHANGE AVE VERNON, CA 90058 CALFLEX C/O WATTS WATER TECHNOLOGIES 815 CHESTNUT ST N ANDOVER, ME 01845-6098 CALIF COMBINING CORP 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BLVD VERNON, CA 90058 VERNON, CA 90058 CALTEX PLASTICS CALTEX PLASTICS PO BOX 58546 PO BOX 58546 VERNON, CA 90058 VERNON, CA 90058 CALTRANS - D07 CALTRANS - D07 ACCOUNTING ACCOUNTING PO BOX 168020 PO BOX 168020 SACRAMENTO, CA 95816 SACRAMENTO, CA 95816 CALTRANS - D07 CAL -WESTERN SALES CORP ACCOUNTING 3344 LEONIS BLVD PO BOX 168020 VERNON, CA 90058 SACRAMENTO, CA 95816 CAL-YORK LLC CAMINO REAL FOODS INC 3355 SLAUSON AVE 2638 E VERNON AVE VERNON, CA 90058 VERNON, CA 90058 SERGIO CANALES CAPRI CUCINA 4325 FURLONG PL 3608 SOTO ST VERNON, CA 90058 VERNON, CA 90058 CARDLOCK FUELS CARGILL-CONTINENTL COMMODITIES PO BOX 4159 2750 JEWEL AVE ORANGE, CA 92613 VERNON, CA 90058 CARIMEX INT'L TRADING INC CARIMEX INT'L TRADING INC 4601 S SOTO ST 4601 S SOTO ST VERNON, CA 90058 VERNON, CA 90058 CARRILLO CUTTING SERVICE INC CASTROL INDUSTRIAL WEST INC 232 N MAPLE AVE 150 W WARRENVILLE RD MONTEBELLO, CA 90640 NAPERVILLE, IL 60563 CALIFORNIA GIFT CENTER INC 4334 SANTA FE AVE VERNON, CA 90058 CALPLUSH MFG CORP 3575 SANTA FE AVE VERNON, CA 90058 CALTEX PLASTICS PO BOX 58546 VERNON, CA 90058 CALTRANS - D07 ACCOUNTING PO BOX 168020 SACRAMENTO, CA 95816 CAL-YORK LLC 3355 SLAUSON AVE VERNON, CA 90058 CAMINO REAL FOODS INC 2638 E VERNON AVE VERNON, CA 90058 CAR TEX 2035 VERNON AVE VERNON, CA 90058 CARGILL-CONTINENTL COMMODITIES 2750 JEWEL AVE VERNON, CA 90058 CARIMEX INT'L TRADING INC 4601 S SOTO ST VERNON, CA 90058 CATALINA PACIFIC CONCRETE CAL PORTLAND CEMENT 2025 E FINANCIAL WAY GLENDORA, CA 91740 AHMV-09-009-1, V096S tpege6 al aastpn o09LS (,AU3AI nv W0:)•fU8ne-nr mAA apldea a6ey3as a;a a6ejanogl;ue uolsso dwl Jam and Smudge Free Printing wwwavery--com w q® 5160O Use Avery® TEMPLATE 51600 ow'1-800-GO-AVERY CATALINA PACIFIC CONCRETE CATELLUS COMMERCIAL CATELLUS DEVELOPMENT CORP CAL PORTLAND CEMENT LAX05601 T LAX05601 2025 E FINANCIAL WAY 841 APOLLO ST 841 APOLLO ST GLENDORA, CA 91740 EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP LAX05603-LAX05604 LAX05603-LAX05604 LAX05602 841 APOLLO ST 841 APOLLO ST 841 APOLLO ST EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP LAX05602 LAX05603-LAX05604 LAX05603-LAX05604 841 APOLLO ST 841 APOLLO ST 841 APOLLO ST EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP LAX05603-LAX05604 LAX05606-LAX05607 LAX05602 841 APOLLO ST 841 APOLLO ST 841 APOLLO ST EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP LAX05613 LAX05613-LAX5614 LAX05613-LAX5614 841 APOLLO ST 841 APOLLO ST 841 APOLLO ST EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 EL SEGUNDO, CA 90245 CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP CAV INDUSTRY INC LAX05614 LAX05615 DBA BORRONI MFG 841 APOLLO ST 841 APOLLO ST PO BOX 58641 EL 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PROJECT 2715 E 50TH ST VERNON, CA 90058 CITY OF VERNON TRAFFIC CONTROL 4305 SANTA FE AVE VERNON, CA 90058 CHOICE FOODS INC 5798 ANDERSON ST VERNON, CA 90058 CHRISTENSEN PLATING WORK 2455 E 52ND ST VERNON, CA 90058 CHUA & SONS CO INC PO BOX 58261 VERNON, CA 90058 CINGULAR WIRELESS ATTN: CASS INFORMATION SYSTEMS PO BOX 182542 COLOMBUS, OH 43218 CITY OF MAYWOOD 4319 E SLAUSON AVE MAYWOOD, CA 90270 CITY OF VERNON PUMP HOUSE 4305 SANTA FE AVE VERNON, CA 90058 CITY OF VERNON HEALTH DEPT 4305 SANTA FE AVE VERNON, CA 90058 CITY OF VERNON PUBLIC WORKS 4305 SANTA FE AVE VERNON, CA 90058 CITY OF VERNON FIRE STATION #3 4305 SANTA FE AVE VERNON, CA 90058 CITY OF VERNON WELL #19 4305 SANTA FE AVE VERNON, CA 90058 AH3AV-09-009-6 0094S;uege6 al aaslllin o09Ls ®AU3A%f w®�-Aaane-mmm apldW a6e4:)8 a �a a6ea�nogl;ue uotssaidwl Jam and Smudge Free printing ® www.avery.com Use Avery@ TEMPLATE 51600 ® 1-800-GO-AVERY CITY OF VERNON CITY OF VERNON CITY APARTMENTS APTS LAUNDRY ROOM 4305 SANTA FE AVE 4305 SANTA 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LIGHT & POWER (SOFFIT LIGHTING) 4305 SANT AFE AVE VERNON, CA 90058 A)13AV-09-008-6 �.® @096S 3Ejege6 al zasloin @0915 ®A�13A� � uao,-tiane-mmm ® apldea a6eypas p;a a6eunogljue uolssaidwi Jam and Smudge Free Printing ® www.averycom AVERYO 51600 Use Avery® TEMPLATE 51600 1-800-GO-AVERY v CITY OF VERNON CITY OF VERNON COMMUNITY SERVICES (CITY HALL) BUSINESS AND DEVELOPMENT 4305 SANTA FE AVE 4305 SANTA FE AVE VERNON, CA 90058 VERNON, CA 90058 CITY OF VERNON LIGHT AND POWER (ELECTRIC CAR 4305 SANTA FE AVE VERNON, CA 90058 CITY OF VERNON CITY OF VERNON CITY OF VERNON LIGHT & POWER (LEONIS SUB) LIGHT & POWER DEPT MGS-RECYCLED WATER 4305 SANTA FE AVE 4305 SANTA FE AVE 4305 SANTA FE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 CITY OF VERNON CITY OF VERNON CITY OF VERNON WATER DEPT WELL #14 MGS PROJECT 4305 SANTA FE AVE 4305 SANTA FE AVE 2715 E 50TH VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 CLASSIC SLIPCOVERS INC CLASSIC SLIPCOVERS INC 4300 DISTRICT BLVD 4300 DISTRICT BLVD 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5657 WASHINGTON BLVD VERNON, CA 90058 COMMERCE, CA 90040 www.averycom 1-800-GO-AVERY HERCULES FORWARDING HERITAGE PRINTING 7701 W 95TH ST 3317 E 50TH ST HICKORY HILLS, IL 60457 VERNON, CA 90058 HIBALY INC HIGH ROCKIES DISTRIBUTION 4651 PACIFIC BLVD 6300 E 49TH DR VERNON, CA 90058 COMMERCE CITY, CO 80022 HOLLANDER HOME FASHIONS CORP ATTN: LATONDA GRAHAM 6560 W ROGER CR - BOCA RATON, FL 33487 HOLLYWOOD LAMP & SHADE CO 2928 LEONIS BLVD VERNON, CA 90058 HOME MART, DBA KIMSCO CO 3009 BANDINI BLVD VERNON, CA 90058 HUDSON CLOTHING INC 4800 E 26TH ST VERNON, CA 90058 HUXTABLE'S KITCHEN INC PO BOX 58467 VERNON, CA 90058 HOLLANDER HOME FASHIONS CORP ATTN: LATONDA GRAHAM 6560 W ROGER CR - BOCA RATON, FL 33487 HOLY ANGELS CHURCH OF THE DEAF 4433 SANTA FE AVE VERNON, CA 90058 HOOVER TRADING INC 2930 E 44TH ST VERNON, CA 90058 HUNG WEI COMPANY 1234 N ALTA AVE UPLAND, CA 91786 HUXTABLE'S KITCHEN INC PO BOX 58467 VERNON, CA 90058 AV°ERVO 5160® HARKHAM INDUSTRIES INC 4890 ALAMEDA ST VERNON, CA 90058 HARVARD LABEL INC 4731 FRUITLAND AVE VERNON, CA 90058 HEITZ TRUCKING INC PO BOX 6607 OAKLAND, CA 94603 HERNANDEZ CUTTING SERVICE X 2856 LEONIS BLVD VERNON, CA 90058 HIGH STAR TOYS INC 2150 E 25TH ST VERNON, CA 90058 HOLLANDER HOME FASHIONS CORP ATTN: LATONDA GRAHAM 6560 W ROGER CR - BOCA RATON, FL 33487 HOLY ANGELS CHURCH OF THE DEAF 4433 SANTA FE AVE VERNON, CA 90058 RALPH HOROW ITZ 11911 SAN VICENTE BLVD #310 BRENTWOOD, CA 90049 HUXTABLE'S KITCHEN INC PO BOX 58467 VERNON, CA 90058 INGINC 2910 SANTA FE AVE VERNON, CA 90058 AH3AV-09-008-f 909t5 i!aege6 ei zosloin 00915 )Au3A%f n W0:)-Aa8ne-Nvk& n apldea a6eypas a;a e6eaanogl;ue uolssajdwl Jam acid Smudge Free Printing Use Avery@ TEMPLATE 51600 ICE GRAPHICS INC ICE GRAPHICS INC 4770 E 49TH ST 4770 E 49TH ST VERNON, CA 90058 VERNON, CA 90058 IDEA LABEL CO IDENTITY CRAFT INC C/O CHANG M CHUN 6929 HAVENHURST AVE 2301 E 38TH ST ' VAN NUYS, CA 91406 VERNON, CA 90058 vuww.avery.com 1-800-GO-AVERY I N AVERYO 51600 ICE TEA INC 2801 SANTA FE AVE 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37TH ST VERNON, CA 90058 J TOP GROUP LLC 2401 E 27TH ST VERNON, CA 90058 A213AV-09-008-t ,.,..�. u OXfJane•nnmm IVY HILL CORP - A/P 2255 MARKHAM RD TORONTO ONTARIO, M1 B 2W3 J & A IMPORTERS 4398 AYERS AVE VERNON, CA 90058 J & J SNACK FOODS CORP 5353 DOWNEY RD VERNON, CA 90058 J & M SEWING SUPPLIES INC 3701 SANTA FE AVE VERNON, CA 90058 J C SALES 2720 SOTO ST LOS ANGELES, CA 90023 J J PARAMOUNT INTL INC DBA PARAMOUNT IMPORT &WHLESALE 2936 E 46TH ST VERNON, CA 90058 J M CUTTING & FUSING 2333 E 49TH ST VERNON, CA 90058 J T RYERSON/SON INC 4310, BANDINI BLVD VERNON, CA 90023 J TOP GROUP LLC 2401 E 27TH ST VERNON, CA 90058 009tS 3!aege6 al zasilgri apIdea 96e4:)8s a;a a6eajnogjjue uo!ssaidml Jam and Smudge Free Printing I www.avery-com (�j/ � AVERYO 5160 Use Avery® TEMPLATE 5160 1-800-GO-AVERY J TOP GROUP LLC E & T ASSOCIATES JAC INSTRUMENT COMPANY 2401 E 27TH ST C/O CHARLES DUNN COMPANY INC 4550 MAYWOOD AVE VERNON, CA 90058 3780 KILROY AIRPORT WAY STE 880 VERNON, CA 90058 LONG BEACH, CA 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CA 90023 VERNON, CA 90058 JDS FINISHING INC JDS FINISHING INC JEJOMI DESIGNS INC, DBA 5389 ALCOA AVE 5389 ALCOA AVE LONE PINE LEATHERS VERNON, CA 90058 VERNON, CA 90058 2626 FRUITLAND AVE VERNON, CA 90058 JENSEN INDUSTRIES JENSEN INDUSTRIES JET ABRASIVE CO 1946 E 46TH ST 1946 E 46TH ST 4383 FRUITLAND AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 JETRO'LOV INC JETRO LOV INC JFC INTERNATIONAL INC 15-24 132ND ST 15-24 132ND ST PO BOX 875349 COLLEGE POINT, NY 11356 COLLEGE POINT, NY 11356 LOS ANGELES, CA 90087 AB3AV-00-009-L 009LS jpege6 al aasll!ln ,.09,s ®JIUSAV [ �+ 1 Wo:)-Aj8Ae`MMM apldea 96e4:)8s a 49 a6ej inogiwe uolssaadwl Jam and Smudge Free Printing f� www.avery.com j�//j�� AVERY@ 51600 Use Avery® TEMPLATE 51600 �� 1-800-GO-AVERY 1� JFC INTERNATIONAL INC PO BOX 875349 LOS ANGELES, CA 90087 JJL TORQUE CONVERTER 5710 SANTA FE AVE VERNON, CA 90058 JONS MARKETPLACE, DBA BERBERIAN ENTERPRISES 5315 SANTA MONICA BLVD LOS ANGELES, CA 90029 JOYMAX TRADING INC 1120 1/2 S MAIN ST 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VERNON, CA 90058 KAL KAN FOODS INC ATTN:CAROL COXHEAD PO BOX 58853 VERNON, CA 90058 KAL KAN FOODS INC ATTN:CAROL COXHEAD PO BOX 58853 VERNON, CA 90058 KAL KAN FOODS INC ATTN:CAROL COXHEAD PO BOX 58853 VERNON, CA 90058 KALAYJIAN ENT 2835 E 26TH ST VERNON, CA 90023 KAREN KANE COMPANY 2275 E 37TH ST VERNON, CA 90058 KBBINVESTMENTS PO BOX 10235 BEVERLY HILLS, CA 90213 KELLYTOY USA INC 5602 BICKETT ST VERNON, CA 90058 KENNEDY NAME PLATE CO 4509 PACIFIC BLVD VERNON, CA 90058 CURTIS KIRKLAND PO BOX 5386 HUNTINGTON PARK, CA 90255 � Md3A`d-OD-008-1, 009LS 1i.iege6 a1 zasipfl ,.09LS @)AH3AV t®Y/ 1 wOyiGane-A&mAA apldea a6e4:)as a is a6eaanogljue uoissaadwi Jam and Smudge Free Printing ® www.averycom �it�i AVERYO 5160® Use Avery® TEMPLATE 51600 1-800-GO-AVERY KITTAMOR INTERNATIONAL INC KOCAL TRADING CO JERRY KOHEN 2501 E 27TH ST 2375 E 27TH ST AMERICAN WASTE UNLIMITED INC VERNON, CA 90058 VERNON, CA 90058 2550 SOTO ST LOS ANGELES, CA 90023 KOOLER AIR CONDITIONING & HEAT KOP-COAT INC KROGER CO 4724 E 26TH ST PO BOX 182598 #7 ATTN: SMR INC (760DCO02) VERNON, CA 90058 PO BOX 19010 COLUMBUS, OH 43218 OLYMPIA, WA 98507 KROGER CO KYUNG MIN TRADING CORP L & T INVESTMENT CORP ATTN: SMR INC (760DCO02) 2201 E 38TH ST 4833 FRUITLAND AVE PO BOX 19010 VERNON; CA 90058 VERNON, CA 90058 OLYMPIA, WA 98507 L A AIRLINE INC L A AIRLINE INC L A APPAREL SUPPLY INC 3844 SANTA FE AVE 3844 SANTA FE AVE 2850 SANTA FE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 L A CLOSEOUT INC L A CLOSEOUT INC L A COUNTY INT SERV DEPT 5526 SOTO ST 5526 SOTO ST ATTN UTILITY CLAIMS VERNON, CA 90058 VERNON, CA 90058 1100 N EASTERN AVE LOS ANGELES, CA 90063 L A COUNTY METROPOLITAN L A CREATIVE EMBELLISHMENT INC L A DESIGN INC TRANSPORTATION AUTHORITY 4560 E 50TH ST 3874 SANTA FE AVE PO BOX 512296 VERNON, CA 90058 VERNON, CA 90058 LOS ANGELES, CA 90051 L A JUNCTION RAILWY L A JUNCTION RAILWY L A JUNCTION RAILWY 4433 EXCHANGE AVE 4433 EXCHANGE AVE 4433 EXCHANGE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 L A JUNCTION RAILWY L A JUNCTION RAILWY L A JUNCTION RAILWY 4433 EXCHANGE AVE 4433 EXCHANGE AVE 4433 EXCHANGE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 L A JUNCTION RAILWY L A JUNCTION RAILWY L A JUNCTION RAILWY 4433 EXCHANGE AVE 4433 EXCHANGE AVE 4433 EXCHANGE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 L A JUNCTION RAILWY L A JUNCTION RAILWY L A JUNCTION RAILWY 4433 EXCHANGE AVE 4433 EXCHANGE AVE 4433 EXCHANGE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 1183AV-O9-008-L @09LS #laege6 al aasillin ®09LS ®AIMM wo,%GaAi?-AAmm ® apldea a6e438s a;a a6eaanogliue uolssaidwi Jam and Smudge Free Printing www.averycom AVEj YO 5160® Use Avery® TEMPLATE 5160(b 1-800-GO-AVERY �J L A JUNCTION RAILWY L A JUNCTION RAILWY L A JUNCTION RAILWY 4433 EXCHANGE AVE 4433 EXCHANGE AVE 4433 EXCHANGE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 L A JUNCTION RAILWY L A JUNCTION RAILWY L A JUNCTION RAILWY 4433 EXCHANGE AVE 4433 EXCHANGE AVE 4433 EXCHANGE AVE 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LIFE LIKE PRODUCTS INC 1600 UNION AVE BALTIMORE, MD 21211 LIFT -IT MFG CO INC 4780 CORONA AVE VERNON, CA 90058 DOUG LINKON C/O M5 STEEL MFG INC 1450 MIRASOL ST LOS ANGELES, CA 90023 LITTLEJOHN REULAND 4575 PACIFIC BLVD VERNON, CA 90058 UKORAL INC 5175 SOTO ST VERNON, CA 90058 LASKEY WEIL II C/O IDS 515 S FIGUEROA ST STE 1600 LOS ANGELES, CA 90071 LBA REALTY FUND HOLDING CO III C/O LBA REALTY FUND LP 1149 S HILL ST SUITE H300 LOS ANGELES, CA 90015 LEONARD MEAT CO INC PO BOX 5216 GARDEN GROVE, CA 92845 LEVEL ENTERPRISES INC 3119 BANDINI BLVD VERNON, CA 90023 LIBERTY SUPPLIES 4341 DISTRICT BLVD VERNON, CA 90058 LIFE LIKE PRODUCTS INC 1600 UNION AVE BALTIMORE, MD 21211 LIGATURE, THE 4909 ALCOA AVE VERNON, CA 90058 LIPOPSM INT'L CORP 4641 DISTRICT BLVD VERNON, CA 90058 LIZ CLAIBORNE HOLDINGS LUCKY BRAND - #360 PO BOX 191 N BERGEN, NJ 7047 UKORAL INC 5175 SOTO ST VERNON, CA 90058 LASKEY WEIL II C/O IDS 515 S FIGUEROA ST STE 1600 LOS ANGELES, CA 90071 LEE MART INC 1945 VERNON AVE VERNON, CA 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NACORI CUTTING INC 5015 HAMPTON ST VERNON, CA 90058 [� AB3AV-09-009-L ,,,�,,,... @09LS 1!aege6 ai zaswin 009LS ®AU3AW ( l W0rAJane-A&m n apldea a6e439s a }a a6eimocigue uolssaiduii Jam and Smudge Free Printing www.averycom AVERY® 51600 Use Avery@ TEMPLATE 51600 1-800-GO-AVERY S NADELL & CO NAFTA WHOLESALE INC ANITA NANDWANI 3015 LEONIS BLVD 3003 LEONIS BLVD 4632 PACIFIC BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 NANKA SEIMEN CO NAPPCO INC NATIONAL CORSET SUPPLY HOUSE 3030 LEONIS BLVD BAKER DIVISION 3240 E 26TH ST VERNON, CA 90058 2929 S SANTA FE'AVE VERNON, CA 90023 VERNON, CA 90058 NATIONAL CORSET SUPPLY HOUSE NATIONAL FOODSERVICE LLC NATIONAL SALES CORP 3240 E 26TH ST 4820 ALCOA AVE 6250 BOYLE AVE VERNON, CA 90023 VERNON, CA 90058 VERNON, CA 90058 NATIONAL TRANSMISSION PRODUCTS NATIONWIDE TRADING NATURE'S FINEST PRODUCE CO 5151 HELIOTROPE AVE 3100 E 44TH ST PO BOX 58366 VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 NAXA ELECTRONICS INC NBS CORPORATION NBS 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ALEX NEVAREZ NEW CROWN WHOLESALE NEW PARADIGM MARKETING INC 4326 FURLONG PL 2455 VERNON AVE 53 E GRANDVIEW AVE VERNON, CA 90058 VERNON, CA 90058 ARCADIA, CA 91006 NEW STAR TOYS & GIFTS INC NEW STAR TOYS & GIFTS INC NEW STAR TOYS & GIFTS INC 2211 E 27TH ST 2211 E 27TH ST 2211 E 27TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 NEW STAR TOYS & GIFTS INC NEW STAR TOYS & GIFTS INC NEW STAR TOYS & GIFTS INC 2211 E 27TH ST 2211 E 27TH ST 2211 E 27TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 NEW ZEALAND SEAFOODS NEW ZEALAND SEAFOODS NEWCHEF FASHION INC 4321 BOYLE AVE 4321 BOYLE AVE 3223 E 46TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 NEXTEL COMMUNICATIONS NEXTEL COMMUNICATIONS NEXTEL COMMUNICATIONS SPRINT NEXTEL CORPORATION SPRINT NEXTEL CORPORATION SPRINT NEXTEL CORPORATION PO BOX 182095 PO BOX 182095 PO BOX 182095 COLUMBUS, OH 43218-2095 COLUMBUS, OH 43218-2095 COLUMBUS, OH 43218-2095 A113AV-09-008-6 .—® a046S;uege6 al zesiom ..0965 ...... 1v worAaane AAMAn apldea a6elpas a 49 96eaano91lue uoissaadwl Jam and Smudge Free Printing ® www.averycom Use Avery® TEMPLATE 51600 ��' 1-800-GO-AVERY NEXTEL COMMUNICATIONS NEXTEL COMMUNICATIONS SPRINT NEXTEL CORPORATION SPRINT NEXTEL CORPORATION PO BOX 182095 PO BOX 182095 COLUMBUS, OH 43218-2095 COLUMBUS, OH 43218-2095 NI INDUSTRIES INC NI INDUSTRIES INC PO BOX 58507 PO BOX 58507 VERNON, CA 90058 VERNON, CA 90058 OZOO, INC. 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INC 2345 E 52ND ST VERNON, CA 90058 VERSACOLD ATTN: ACCOUNTS PAYABLE 1415 N RAYMOND AVE ANAHEIM, CA 92801 P C REPAIR PROFESSIONAL INC 5139 PACIFIC BLVD VERNON, CA 90058 www.avery.com 1-800-GO-AVERY 0 E CLARK PAPER BOX CO 2716 LEONIS BLVD VERNON, CA 90058 ON SANTA FE PARTNERS LLC C/O IDS 515 S FIGUEROA ST LOS ANGELES, CA 90071 ONLINE RECORDS STORAGE C/O DATA SAFE SERVICES CORP 180 TECHNOLOGY PARKWAY RM 310 NORCROSS, GA 30092 OVERHILL FARMS INC PO BOX 58806 VERNON, CA 90058 OWENS ILLINOIS INC ATTN: A/P DEPT., PLAZA ONE PERRYSBURG, OH 43551-2999 OWENS ILLINOIS INC ATTN: A/P DEPT., PLAZA ONE PERRYSBURG, OH 43551-2999 OWENS ILLINOIS INC ATTN: A/P DEPT., PLAZA ONE PERRYSBURG, OH 43551-2999 VERSACOLD ATTN: ACCOUNTS PAYABLE 1415 N RAYMOND AVE ANAHEIM, CA 92801 VERSACOLD ATTN: ACCOUNTS PAYABLE 1415 N RAYMOND AVE ANAHEIM, CA 92801 P J GROUP 7442 ORANGEWOOD AVE GARDEN GROVE, CA 92841 AV ERY@ 51600 OAK MANUFACTURING CO INC 2120 E 25TH ST VERNON, CA 90058 ON TARGET LAUNDRY LLC 2713 BONNIE BEACH PL VERNON, CA 90058 OSTERBAUER COMPRESSOR SERVICE 5041 S SANTA FE AVE VERNON, CA90058 OVERHILL FARMS INC PO BOX 58806 VERNON, CA 90058 OWENS ILLINOIS INC ATTN: A/P DEPT., PLAZA ONE PERRYSBURG, OH 43551-2999 OWENS ILLINOIS INC ATTN: A/P DEPT., PLAZA ONE PERRYSBURG, OH 43551-2999 P & L CUTTING INC 4717 DISTRICT BLVD VERNON, CA 90058 VERSACOLD ATTN: ACCOUNTS PAYABLE 1415 N RAYMOND AVE ANAHEIM, CA 92801 VERSACOLD ATTN: ACCOUNTS PAYABLE 1415 N RAYMOND AVE ANAHEIM, CA 92801 P J GROUP 7442 ORANGEWOOD AVE GARDEN GROVE, CA 92841 � A83"-09-008-1. ,.,..s 009LS1raege6 a1 zasipfj 1°Y%J o09LS ®AU3A%f W0:)-fa8ne-AftMM apldea o6e4:)8s a;a o6eunoggue uolssaidwl Jam and Smudge Few Printing 11 www.avery.com avery.com w AV'ERYO 51600 Use Avery® TEMPLATE 51600 ® 1-800-GO-AVERY P KAY METAL INC P W P INDUSTRIES P W P INDUSTRIES 2448 E 25TH ST 3751 SEVILLE AVE 3751 SEVILLE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 P Y T-SHIRT PABCO PAPER PRODUCTS CO PABCO PAPER PRODUCTS CO 2126 E 52ND ST 4460 PACIFIC BLVD 4460 PACIFIC BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PABCO PAPER PRODUCTS CO PABCO PAPER PRODUCTS CO PACER FURNITURE MFG INC 4460 PACIFIC BLVD 4460 PACIFIC BLVD PO BOX 58087 VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PACER FURNITURE MFG INC PACIFIC AMERICAN FISH CO INC PACIFIC AMERICAN FISH CO INC PO BOX 58087 5525 SANTA FE AVE 5525 SANTA FE AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PACIFIC ARROW EXPRESS INC AT & T SERVICES INC AT & T SERVICES INC 2860 ALAMEDA ST VERNCAM0047 E212B VERNCA00004 E20CV VERNON, CA 90058 PO BOX 182552 PO BOX 182552 COLUMBUS, OH 43218-2552 COLUMBUS, OH 43218-2552 AT & T SERVICES INC AT & T SERVICES INC AT & T SERVICES INC ALHBCAM0066 E10CT VERNCAM0033 E20CB VERNCAM0033 E20CB PO BOX 182552 PO BOX 182552 PO BOX 182552 COLUMBUS, OH 43218-2552 COLUMBUS, OH 43218-2552 COLUMBUS, OH 43218-2552 PACIFIC COAST CHEMICAL PACIFIC COAST TIRES PACIFIC COAST TRANSPORT 2424 4TH ST 3056 BANDINI BLVD 11850 INDUSTRY AVE BERKLEY, 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INDUSTRIAL C/O ADVANTAGE IQ -MS 1136 3660 WILSHIRE BLVD #530 3660 WILSHIRE BLVD #530 PO BOX 2440 LOS ANGELES, CA 90010 LOS ANGELES, CA 90010 SPOKANE, WA 99210-2440 PACIFIC SOUTHWEST SALES PACIFIC WEST PAPER CO PACIFICA FOODS CO 4600 DISTRICT BLVD 4803 EVERETT AVENUE 4608 E 50TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PACKAGING ADVANTAGE CORP PACKAGING ADVANTAGE CORP PACKAGING ADVANTAGE CORP 4633 DOWNEY RD 4633 DOWNEY RD 4633 DOWNEY RD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PACKAGING ADVANTAGE CORP PACKAGING ADVANTAGE CORP PACKAGING CORP OF AMERICA 4633 DOWNEY RD 4633 DOWNEY RD 4240 BANDINI BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90023 PACKAGING CORP OF AMERICA PACKERS INVESTMENTS PACKERS INVESTMENTS 4240 BANDINI BLVD KING MEAT INC KING MEAT INC VERNON, CA 90023 PO BOX 58834 PO BOX 58834 VERNON, CA 90058 VERNON, CA 90058 PACKERS INVESTMENTS PADDED WAGON OF CALIFORNIA PALACE TEXTILES KING MEAT INC 4329 BANDINI BLVD 4625 E 50TH ST PO BOX 58834 VERNON, CA 90023 VERNON, CA 90058 VERNON, CA 90058 PALACE TEXTILES PALEA CORPORATION PALEA CORPORATION 4625 E 50TH ST 4201 DISTRICT BLVD 4215 DISTRICT BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PAN AMERICAN BANANA PAPA CANTELLA'S INC GEORGE PAPAC UNIFIED LTD 3341 E 50TH ST 4327 FURLONG PL PO BOX 21366 VERNON, CA 90058 VERNON, CA 90058 LOS ANGELES, CA 90021 PARAISO PUBLISHERS INC PAT'S DECORATOR SVC INC PAT'S DECORATOR SVC INC 2198 ANDERSON ST GIL LOPEZ GIL LOPEZ VERNON, CA 90058 2808 SANTA FE AVE 2808 SANTA FE AVE VERNON, CA 90058 VERNON, CA 90058 ��'� MOA`d-OJ-008-1, ee 009LS luege6 al zaslnin ®09LS ®AU3A%f `� ] IUO:)YG8Ae'MMM a®e apldea afiey:)as a;a a6eain®gl�i ue uolssa�wl Jam and Smudge Free Printing www.avery.com W AVERY0 51600 Use Avery® TEMPLATE 51600 � 1-800-GO-AVERY PA.UL DAVRIL INC PEER PROPERTIES 5401 SOTO ST C/O RDS INVESTMENTS VERNON, CA 90058 10900 WILSHIRE BLVE SUITE 1500 LOS ANGELES, CA 90024 PEPPER BERRY CO LLC PEREIDA DISTRIBUTORS 4561 E 48TH ST 2832 ALAMEDA ST VERNON, CA 90058 VERNON, CA 90058 PHYSICAL DISTRIBUTION SERVICE PHYSICAL DISTRIBUTION SERVICE PO BOX 60622 PO BOX 60622 LOS ANGELES, CA 90060 LOS ANGELES, CA 90060 PICONE OF CALIFORNIA PILOT BRANDS 5810 E 2ND ST PO BOX 10107 VERNON, CA 90058 ZEPHGR COVE, NV 89448 PILOT BRANDS PILOT DISTRIBUTION CENTER PO BOX 10107 C/O MARK MITCHELL - ZEPHGR COVE, NV 89448 5600 ALAMEDA ST VERNON, CA 90058 PENNZOIL PRODUCTS CO C/O FACILITY IQ MS1052 PO BOX 2440 SPOKANE, WA 99210 PHYSICAL DISTRIBUTION SERVICE PO BOX 60622 LOS ANGELES, CA 90060 PHYSICAL DISTRIBUTION SERVICE 2615 BONNIE BEACH PL VERNON, CA 90058 PILOT BRANDS PO BOX 10107 ZEPHGR COVE, NV 89448 PILOT DISTRIBUTION CENTER C/O MARK MITCHELL 5600 ALAMEDA ST VERNON, CA 90058 PIONEER STATIONERS INC PIONEER STATIONERS INC PISTON ENGINE PARTS INC 4404 BANDINI BLVD 4404 BANDINI BLVD 1951 E 48TH ST VERNON, CA 90023 VERNON, CA 90023 VERNON, CA 90058 PK & J CO INC PLAZA MARKET, THE PLUMBING & INDUSTRIAL 4900 SANTA FE AVE 928 S WESTERN AVE - STE #100 12224 PHILADELPHIA ST VERNON, CA 90058 LOS ANGELES, CA 90006 WHITTIER, CA 90601 PLUMBING & INDUSTRIAL POLY PAK AMERICA INC POLY PAK AMERICA INC 12224 PHILADELPHIA ST 2939 E WASHINGTON BLVD 2939 E WASHINGTON BLVD WHITTIER, CA 90601 LOS ANGELES, CA 90023 LOS ANGELES, CA 90023 PONTRELLI & LARICCHIA PORTOFINO INT'L TRADING 6080 MALBURG WY 2465 VERNON AVE VERNON, CA 90058 VERNON, CA 90058 POUR HOUSE -ART CASTING, THE PPP LLC 2065 E 37TH ST PO BOX 2047 VERNON, CA 90058 MONTEBELLO, CA 90640 PORTOFINO INTL TRADING 2465 VERNON AVE VERNON, CA 90058 PPP LLC PO BOX 2047 MONTEBELLO, CA 90640 @09t5 ®AtJBA f nv AN3AV-09-008-1 � uao,•ftJane'AAMAn 009LS jpege6 aI zaslll;D aplde.i 06eWas a 1a a6e unogque uolssaidwl Jam and Smudge Free Printing ® www.averycom Q AVERYO 51600 Use Avery® TEMPLATE 51600 �� 1-800-GO-AVERY PRAXAIR DISTRIBUTION INC PREFERRED FREEZER SERVICES INC PREFERRED FREEZER SERVICES INC ATTN: 4744-109 2050 E 55TH ST 2050 E 55TH ST PO BOX 9224 VERNON, CA 90058 VERNON, CA 90058 DES MOINES, IA 50306 PREFERRED FREEZER SERVICES INC PREFERRED FREEZER SERVICES INC PREFERRED FREEZER SERVICES INC 2100 E 55TH ST 2100 E 55TH ST PO BOX 911230 VERNON, CA 90058 VERNON, CA 90058 LOS ANGELES, CA 90091 PREMIER ENTERPRISES INC PREMIER MEAT COMPANY PRESTIGE TRADING CORP 4820 EVERETT CT PO BOX 58183 4601 S BOYLE ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PRICE DEPOT PRICE POWER INTL INC PRIDE JEANS INC 3259 E 46TH ST 5501 DOWNEY RD 2898 E 54TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PRIDE JEANS INC PRIDE JEANS INC PRIDE JEANS INC 2898 E 54TH ST 2898 E 54TH ST 2898 E 54TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PRIDE JEANS INC PRIME WIRE & CABLE PRIMO CORPORATION 2898 E 54TH ST 7400 E SLAUSON AVE 4921 GIFFORD AVE VERNON, CA 90058 COMMERCE, CA 90040 VERNON, CA 90058 PRIMO CORPORATION PRIMO CORPORATION PRINCESS PAPER INC 4921 GIFFORD AVE 4921 GIFFORD AVE 4455 FRUITLAND AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PRO CASES INC PROFESSIONAL PRODUCE PRUDENTIAL INSURANCE CO 4626 E 48TH ST 2570 E 25TH ST C/O UNIRE REAL ESTATE GROUP VERNON, CA 90058 VERNON, CA 90058 10 POINTE DR STE 150 BREA, CA 92821 PRUDENTIAL INSURANCE CO PRUDENTIAL INSURANCE CO PRUDENTIAL INSURANCE CO C/O UNIRE REAL ESTATE GROUP C/O UNIRE REAL ESTATE GROUP C/O UNIRE REAL ESTATE GROUP 10 POINTE DR STE 150 10 POINTE DR STE 150 10 POINTE DR STE 150 BREA, CA 92821 BREA, CA 92821 BREA, CA 92821 PRUDENTIAL INSURANCE CO PRUDENTIAL INSURANCE CO PUNCH PRESS PRODUCTS INC C/O UNIRE REAL ESTATE GROUP C/O UNIRE REAL ESTATE GROUP 1911 E 51ST ST 10 POINTE DR STE 150 10 POINTE DR STE 150 VERNON, CA 90058 BREA, CA 92821 BREA, CA 92821 A213AV-09-008-1 ,. @09LS;!aege6 al zaslign cam096S ca)AM9AW 1�T! 1 wor�taane AAmm ®� apldea a6ay�qs a ja a6eaanogllue uolssaadwl Jam and Smudge Free Printing ® www.avery-com AVERY@ 51600 Use Avee TEMPLATE 51600 �� 1-800-GO-AVERY PUNCH PRESS PRODUCTS INC PUNCH PRESS PRODUCTS INC PUNCH PRESS PRODUCTS INC 1911 E 51 ST ST 1911 E 51 ST ST 1911 E 51 ST ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 PUNCH PRESS PRODUCTS INC PUNCH PRESS PRODUCTS INC PUTNAM SOURCING GROUP INC 1911 E 51 ST ST 1911 E 51 ST ST 2133 E 38TH ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 QST INDUSTRIES INC QST INDUSTRIES INC QUANTOM CONCEPTS INC 4625 DISTRICT BLVD 4625 DISTRICT BLVD 3351 SLAUSON AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 QUIZNOS 2898 QWIKWAY TRUCKING CO QWIKWAY TRUCKING CO 1018 BASSETT CT 2929 E 50TH ST 2929 E 50TH ST SAN DIMAS, CA 91773 VERNON, CA 90058 VERNON, CA 90058 R& M TRADING R& S SPORTSWEAR R A REED ELECTRIC CO 3710 S ALAMEDA ST 2640 E 26TH ST VENDOR#V12500 VERNON, CA 90058 VERNON, CA 90058 5503 BOYLE AVE VERNON, CA 90058 R C C I R J TRADING CORP R J TRADING CORP 1912 VERNON AVE 4225 CHARTER ST 4225 CHARTER ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 RALPH APPAREL CUTTING RAMCORP PROFESSIONAL SERVICES RAMCORP PROFESSIONAL SERVICES 4901 SANTA FE AVE 5065 PACIFIC BLVD 5065 PACIFIC BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 RAMCORP PROFESSIONAL SERVICES RAN ASSOCIATES LLC RANCHO EL NOPAL 5065 PACIFIC BLVD 10573 W PICO BLVD #602 ATTN: V TORRES VERNON, CA 90058 LOS ANGELES, CA 90064 BELL GARDENS, CA 90202 RANCHO FOODS INC RANDALL FOODS INC RANDALL FOODS INC 2528 E 37TH ST RANDALL CONSOLIDATED RANDALL CONSOLIDATED VERNON, CA 90058 PO BOX 2669 PO BOX 2669 HUNTINGTON PARK, CA 90255 HUNTINGTON PARK, CA 90255 RANDALL FOODS INC RANDALL FOODS INC RANDALL FOODS INC RANDALL CONSOLIDATED RANDALL CONSOLIDATED RANDALL CONSOLIDATED PO BOX 2669 PO BOX 2669 PO BOX 2669 HUNTINGTON PARK, CA 90255 HUNTINGTON PARK, CA 90255 HUNTINGTON PARK, CA 90255 AH3AV-09-008-L ®09L5 llaege6 ai aaslll;D o09LS (@A2: 3A%f 19 1 WO:)-Aaane-mAAm ® apldea a6eq:)as q;a a6emnocipue uolssaidwi lam and Smudge Free Printing Use Avery® TEMPLATE 51600 www.avery.com V AVERY@ 51600 1-800-GO-AVERY RANDALL FOODS INC RANDALL CONSOLIDATED PO BOX 2669 HUNTINGTON PARK, CA 90255 RAP -CO INC RAYEM INVESTMENTS 4924 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PACIFIC CO PO BOX 23908 PO BOX 23908 VERNON, CA 90023 VERNON, CA 90023 REHRIG PACIFIC CO REHRIG PACIFIC CO PO BOX 23908 PO BOX 23908 VERNON, CA 90023 VERNON, CA 90023 RELIANCE STEEL CO RELIANCE STEEL CO 2537 E 27TH ST 2537 E 27TH ST VERNON, CA 90058 VERNON, CA 90058 REX DIST INC REYNOLDS PROPERTIES 2850 E 46TH ST C/O EDWARD R REYNOLDS VERNON, CA 90058 9934 KENDALL CIRCLE FOUNTAIN VALLEY, CA 92708 RGGD INC, DBA RGGD INC, DBA CRYSTAL ART GALLERY CRYSTAL ART GALLERY 3359 E 50TH ST 3359 E 50TH ST VERNON, CA 90058 VERNON, CA 90058 6b091S ®AIJ3A%f 1�1✓11 Aa3AV-09-008-L 909LS;!jege6 al zaslom worAjane auu►nn apldej a6ep9s a;a e6ejjnogllue uolssajduil Jam and Smudge Free Printing www.avery.com ['�� AWERY@ 51600 Use Avery@ TEMPLATE 51600 ® 1-800-GO-AVERY EJ RICHARD FRIEDMAN PO BOX 3220 MANHATTAN BEACH, CA 90266 RIF 151 ST STREET LLC 11601 WILSHIRE BLVD STE 650 LOS ANGELES, CA 90025 RIVIERA CONVERTIBLES INC 3876 SANTA FE AVE VERNON, CA 90058 ROSY LOVES 2327 E 51 ST ST VERNON, CA 90058 ROYAL CROWN IMPORTS INC 3049 BANDINI BLVD VERNON, CA 90058 ROYAL MANUFACTURES 1900 E 25TH ST VERNON, CA 90058 RRIVRE WORKS INC 858 S STANLEY AVE LOS ANGELES, CA 90036 RUDY'S GRAIDING & MARKING 2600 LEONIS BLVD VERNON, CA 90058 S & S AUTO SUPPLY 4515 SOTO ST VERNON, CA 90058 S K TEXTILE INC 2938 E 54TH ST VERNON, CA 90058 RICHARD I KORAL INC 5500 SOTO ST VERNON, CA 90058 RIPLEY GROUP INC, THE 5993 MALBURG WY VERNON, CA 90058 ROBERTSON READY MIX PO BOX 3600 CORONA, CA 92878 ROTAX INC 2940 LEONIS BLVD VERNON, CA 90058 ROYAL MANUFACTURERS 1900 E 25TH ST VERNON, CA 90058 ROYAL NOVELTY & TRIM INC 2529 CHAMBERS ST VERNON, CA 90058 RRR GLASSWERKS TEMP WORKS 2901 SACO ST VERNON, CA 90058 S & H PACKING & SALES CO INC DBA SEASON PRODUCE 2590 HARRIET ST VERNON, CA 90058 S K TEXTILE INC 2938 E 54TH ST VERNON, CA 90058 S L HOLDING LLC 2856 E 54TH ST VERNON, CA 90058 RICHLINE KNIT INC 1945 E 55TH ST VERNON, CA 90058 RITTENHOUSE PAPER CO 2440 E 38TH ST VERNON, CA 90058 ROCKY FOODS INC 1521 BEACH ST MONTEBELLO, CA 90670 ROYAL CROWN IMPORTS INC 3049 BANDINI BLVD VERNON, CA 90058 ROYAL MANUFACTURERS 1900 E 25TH ST VERNON, CA 90058 ROYAL WHOLESALE ELECTRIC 4309 DISTRICT BLVD VERNON, CA 90058 RRR TEMPWERKS 2901 SACO ST VERNON, CA 90058 S & L INTERNATIONAL INC 2856 E 54TH ST VERNON, CA 90058 S K TEXTILE INC 2938 E 54TH ST VERNON, CA 90058 S L HOME FASHIONS 2848 E 54TH ST VERNON, CA 90058 o09LS )AI13AA%f nv )013AV-09-008-L w03-AJOAe°mmm 009LS I!jege6 al zasipin apldej 96e4:)as p ja abeaanogl;ue uolssaadwl Jam and Smudge Free Printing ® www.avery.com com AVERYO 51600 Use Avery@ TEMPLATE 51600 ® 1-800-GO-AVERY S U WHOLESALE CORP 4425 SOTO ST VERNON, CA 90058 WANG GLOBALNET, DBA HANMI INC 3345 SLAUSON AVE VERNON, CA 90058 SANCHEZ UPHOLSTERY SUPPLY 4731 E 52ND ST VERNON, CA 90058 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANTAFE 26 LLC 2900 SANTA FE AVE VERNON, CA 90058 SAP TRADING INC 3201 BANDINI BLVD VERNON, CA 90058 SAS TEXTILES 4567 LOMA VISTA AVE VERNON, CA 90058 SAVOY TEXTILES INC 4800 DISTRICT BLVD VERNON, CA 90058 SC VERNON BUSINESS PARK INC C/O CBRE 4551 GLENCOE AVE STE 100 MARINIA DEL REY, CA 90292 SAIA MOTOR FREIGHT LINE INC 2550 E 28TH ST VERNON, CA 90058 SAN ANTONIO ROSE BAR & REST C/O ENRIQUE ARRES 15320 E CULLEN ST WHITTIER, CA 90603 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANTANA SEWING CONTACTOR 5704 SANTA FE AVE VERNON, CA 90058 SAROJ INTL IND 2615 SANTA FE AVE VERNON, CA 90058 SAVON IMPORTS INC 2675 SANTA FE AVE VERNON, CA 90058 SAVOY TEXTILES INC 4800 DISTRICT BLVD VERNON, CA 90058 SC VERNON BUSINESS PARK INC C/O CBRE 4551 GLENCOE AVE STE 100 MARINIA DEL REY, CA 90292 SALAD FARM 3600 SOTO ST VERNON, CA 90058 SAN ANTONIO ROSE BAR & REST C/O ENRIQUE ARRES 15320 E CULLEN ST WHITTIER, CA 90603 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANDBERG FURNITURE PO BOX 58291 VERNON, CA 90058 SANSCO,DBA JIN CHING IND INC 4201 CHARTER ST VERNON, CA 90058 FAUSTO ROSALES SANTOS 5200 SANTA FE AVE VERNON, CA 90058 SAS TEXTILES 4567 LOMA VISTA AVE VERNON, CA 90058 SAVON IMPORTS INC 2312 E 38TH ST VERNON, CA 90058 SC VERNON BUSINESS PARK INC C/O CBRE 4551 GLENCOE AVE STE 100 MARINA DEL REY, CA 90292 SC VERNON BUSINESS PARK INC C/O CBRE 4551 GLENCOE AVE STE 100 MARINIA DEL REY, CA 90292 kk!3AV-09-008-1, 009LS iuege6 al zasil!in o09LS ®All3ANf nv wo:)-AjaAe-MMM apldea 86e4:)as a }a a6eaanoglxue uolssaidwl Jam and Smudge Free Printing ® www.avery.com AVER(® 51600 Use A+very@ TEMPLATE 51600 1-800-GO-AVERY SC,VERNON BUSINESS PARK INC SC VERNON BUSINESS PARK INC SC VERNON BUSINESS PARK INC C/O CBRE C/O CBRE C/O CBRE 4551 GLENCOE AVE STE 100 4551 GLENCOE AVE STE 100 4551 GLENCOE AVE STE 100 MARINIA DEL REY, CA 90292 MARINIA DEL REY, CA 90292 MARINIA DEL REY, CA 90292 SC VERNON BUSINESS PARK INC SC VERNON BUSINESS PARK INC SC VERNON BUSINESS PARK INC C/O CBRE C/O CBRE C/O CBRE 4551 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wegefi al zaslllift m096s (@AU3A%f wo3Aj8Ae-mmm ® apldea 86e4:)as a 1a a6ejanogilue uolssaidwl Jam and Smudge Free Printing Use Avery® TEMPLATE 51600 SEARS C/O ADVANTAGE IQ MS1624 PO BOX 2440 SPOKANE, WA 99210 SELECTRA INDUSTRIES CORP 5024 HAMPTON ST VERNON, CA 90058 SERVICE PACKING, DBA UNITED FOOD GROUP LLC PO BOX 58506 VERNON, CA 90058 SEWING COLLECTION INC 3113 E 26TH ST VERNON, CA 90023 SHARA TEX INC 3338 SLAUSON AVE VERNON, CA 90058 SHIMS WHOLESALE INC DBA KENSCO GENERAL MERCHANDISE 2608 E 37TH ST VERNON, CA 90058 SILK & DOLLAR C/O BOB HUN 3300 BANDINI BLVD VERNON, CA 90023 SLAUSON DISTRIBUTION CTR LTD C/O MERIDIAN GROUP LTD 11400 W OLYMPIC BLVD LOS ANGELES, CA 90064 SLAUSON DISTRIBUTION CTR LTD C/O MERIDIAN GROUP LTD 11400 W OLYMPIC BLVD LOS ANGELES, CA 90064 SLAUSON DISTRIBUTION CTR LTD C/O MERIDIAN GROUP LTD 11400 W OLYMPIC BLVD LOS ANGELES, CA 90064 www.averycom 1-800-GO-AVERY SECOND GENERATION INC 124 E OLYMPIC BLVD #200 LOS ANGELES, CA 90015 SERVICE OIL CO PO BOX 308 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FRUITLAND AVE VERNON, CA 90058 UNIVERSAL RAZOR INDUSTRIES 6031 MALBURG WY VERNON, CA 90058 A83AV-OD-009-6 ..,...,.. 009LS I!jegeB al aasipif1 o09 LS uao3-da8ne-MMM ® apldeA a6eg3as p ;a a6eaanogl;ue uolssaaduil Jam and Smudge Free Printing Use Avery® TEMPLATE 51600 UNIVERSAL STAR IMPORT 3310 LEONIS BLVD VERNON, CA 90058 UNIVERSAL WAREHOUSES PO BOX 90215 INDUSTRY, CA 91715 UTOPIA DEVELOPMENT IN 2650 LEONIS BLVD VERNON, CA 90058 VGI 5508 SANTA FE AVE VERNON, CA 90058 VAN'S EQUIPMENT & REPAIR INC 6140 ALCOA AVE VERNON, CA 90058 VCT WHEELS 6065 MALBURG WY VERNON, CA 90058 VERNON CHAMBER OF COMMERCE 3801 SANTA FE AVE VERNON, CA 90058 VERNON INDUSTRIAL UNIFORM SUPPLY CO PO BOX 58244 VERNON, CA 90058 VERNON PALLETS INC 1875 E 27TH ST VERNON, CA 90058 VERNON SALES INC 2788 VERNON AVE VERNON, CA 90058 ww+w.averycom 1-800-GO-AVERY UNIVERSAL STAR TRADING INC C/O L & H PROPERTIES INC PO BOX 86266 LOS ANGELES, CA 90086 UPDATE INTERNATIONAL 5801 BOYLE AVE VERNON, CA 90058 UTOPIA DEVELOPMENT INC 2650 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FLORANCE DIST CO INC 3700 SANTA FE AVE 4555 PACIFIC BLVD VERNON, CA 90058 VERNON, CA 90058 CLOUGHERTY PACKAGING 2740 E 37TH ST VERNON, CA 90058 AMERICAN INTEGRATED SERVICES 1502 E OPP ST WILMINGTON, CA 90744 OVERHILL FARMS INC PO 58806 VERNON, CA 90058 MEGAWAVES PRODUCTIONS 2612 LEONIS BLVD VERNON, CA 90058 @09 LS )AIJ3A%f 1 `�'/J A113AV-09-008-1, wog -Aaane-mmm 1111111111101 009LS lljege6 al zas on apldea o6egi9s q ;a a6eaanocIgue uolssaidwl Jam and Smudge Free Printing www.averycom A1ER'05160® Use Avery® TEMPLATE 51600 1-800-GO-AVERY MOSHAY INC LIZ CLARBORNE LEON MALOSKI 6199 MALBURG WAY ATTEN: ACCOUNT PAYABLE 2908 W SHORB ST VERNON, CA 90058 1 CLAIBORNE AVE ALHAMBRA, CA 91803-1811 NORTH BERGEN, NJ 07047 SICORP INTL INC K-MAX TRADING CO INC WALTORO FOOD SERVICE CORP 5051 SANTA FIE AVE 200 W ARTESIA BLVD 385 S LEMON AVE STE E158 VERNON, CA 90058 COMPTON, CA 90220 WALNUT, CA 91789 WALTORO FOOD SERVICE CORP WALTORO FOOD SERVICE CORP RUIDA ENTERPRISES INC 385 S LEMON AVE STE E158 385 S LEMON AVE STE E158 2646 DOWNEY RD WALNUT, CA 91789 WALNUT, CA 91789 VERNON, CA 90058 ARCADIA INC CITY OF VERNON CITY OF VERNON 2301 VERNON AVE 3353 FRUITLAND AVE 3200 FRUITLAND AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 T L C APPAREL INC CUSTOMIZE YOURSELF EZ STITUH 2191 ANDERSON ST 5001 SANTA FE AVE 5001 PACIFIC BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 SEVEN ELEPHANTS ROYAL STREET COMMUNICATIONS LLC MARIANNA MULTICOLOR 2965 VERNON AVE ATTN: LOS ANGELES A/P 5210 SANTA FIE AVE VERNON, CA 90058 PO BOX 600083 VERNON, CA 90058 DALLAS, TX 75360-0083 RDM INTERNATIONAL 2380 E 57ST ST VERNON, CA 90058 THE TIMING INC 1100 S SAN PEDRO ST #A-8 LOS ANGELES, CA 90015 MERIKO INC 4871 SANTA FIE AVE VERNON, CA 90058 BRAD GULLA 4321 FURLONG PL VERNON, CA 90058 ONFO VERNON AVENUE LLC 3120 S MAIN ST LOS ANGELES, CA 90007 THE TIMING INC 1100 S SAN PEDRO ST #A-8 LOS ANGELES, CA 90015 PRINCESS PAPER INC 4455 FRUITLAND AVE VERNON, CA 90058 CITY OF VERNON 5015 DISTRICT BLVD VERNON, CA 90058 ONFO VERNON AVENUE LLC 3120 S MAIN ST LOS ANGELES, CA 90007 MERIKO INC 2305 E 49TH ST VERNON, CA 90058 TAGTIME USA INC 4601 DISTRICT BLVD VERNON, CA 90058 ARCADIS 1400 N HARBOR BLVD SUITE 700 FULLERTON, CA 92835 ®09L5 ®J1213Ad AH3AV-09-008-1 ,,,,.....,— @09t5 jpege6 al zoslign wori(aane•nnm m apldea a6ey3as a 1a a6ej mogljue uolssaidwi Jam and smudge Free Printing www avery com A MYO 5160® Use Avery® TEMPLATE 51600 wwlw� 1-800-GO-AVERY GLOBAL JANTORIAL 5111 HAMPTON ST A VERNON, CA 90058 KB WESTCHESTER BUILDING C/O ANTHONY BRENT CORPORATION P O BOX 10235 BEVERLY HILLS, CA 90213 KB WESTCHESTER BUILDING C/O ANTHONY BRENT CORPORATION P O BOX 10235 BEVERLY HILLS, CA 90213 SOCO WEST, INC. 120 WHITE PLAINS RD TARRYTOWN, NY 10591-5526 LUMUX LIGHTING INC 3742 E 26TH ST VERNON, CA 90058 PURE DESIGN IN 320 E 18TH ST LOS ANGELES, CA 90015 SAN SIMEON INC 3110 E 26TH ST VERNON, CA 90058 GOLDEN OVAL EGGS PO BOX 910 NORCO, CA 92860 AMERICAN HANDLE 4340 E 49TH ST VERNON, CA 90058 KATIE K INC 5601 BICKETT ST VERNON, CA 90058 HENRY STEELE CREATIONS DESIGNS FURNITURE 463 SHORT TRAIL 5335 DISTRICT BLVD TOPANGA, CA 90290 VERNON, CA 90058 KB WESTCHESTER BUILDING KB WESTCHESTER BUILDING C/O ANTHONY BRENT CORPORATION C/O ANTHONY BRENT CORPORATION P O BOX 10235 P O BOX 10235 BEVERLY HILLS, CA 90213 BEVERLY HILLS, CA 90213 AGS, USA LLC CALIFORNIA CONTAINER CORP 2417 E 54TH ST DBA SUPERIOR LITHOGRAPHIC HUNTINGTON PARK, CA 90058 3055 BANDINI BLVD VERNON, CA 90023 EDGE CLOTHING INC EDGE CLOTHING INC 3257 E 26 ST 3257 E 26TH ST VERNON, CA 90023 VERNON, CA 90058 CITY OF VERNON TEAM WORK TRADING LIGHT AND POWER 3748 E 26TH ST 5201 DISTRICT BLVD VERNON, CA 90058 VERNON, CA 90058 SEVEN FOR ALL MANKIND LLC SELECTIVE IMPORTS CORP ATTN: ACCOUNTS PAYABLE 3018 E 46TH ST 4440 E 26TH ST VERNON, CA 90058 VERNON, CA 90023 BEHRUZ GABBAI GOLDEN OVAL EGGS C/O 45TH ST LLC PO BOX 910 PO BOX 2591 NORCO, CA 92860 HUNTINGTON PARK, CA 90255 GOLDEN OVAL EGGS A4 MOSHAY INC. PO BOX 910 6199 MALBURG WAY NORCO, CA 92860 VERNON, CA 90058 IMAGENATION APPAREL INC LOVE CULTURE LLC 2360 E 51 ST ST 5411 S SOTO ST VERNON, CA 90058 VERNON, CA 90058 CATELLUS FINANCE 1 LLC CALIFORNIA SPECIALTY CO C/O PROLOGIS 4621 PACIFIC BLVD 841 APOLLO ST 350 VERNON, CA 90058 EL SEGUNDO, CA 90245 o09L5 ®AU3A%f l�i%i A83AV-09-008-L 009L5 #!jegeB al zasipf) uaorAJane-A&AW ® apldeJ 96eW9S a ja a6eaanogl;ue uoissaidwl Jam and Smudge Free Printing fib www.averycom (i/�� /EVERY® 51609 Use Avery® TEMPLATE 5160® ��' 1-800-GO-AVERY SIMPLE DESIGN PASHA MERCHANTS LLC GRAPHIX 67 5721 ANDERSON ST DBA MOKA HANDBAGS & ACCESSORIES 2385 E 27TH ST VERNON, CA 90058 4340 DISTRICT BLVD VERNON, CA 90058 VERNON, CA 90058 GOLDEN TOUCH IMPORT EXPORT INC AIMEES INTERNATIONAL INC LOURDES CHAVEZ INC 3043 BANDINI BLVD DBA INTERNATIONAL FURNITURE MFG 2170 ANDERSON ST VERNON, CA 90058 4825 DISTRICT BLVD VERNON, CA 90058 VERNON, CA 90058 CONTINENTAL VITAMIN CO AUTOMN CUTTING SERVICE CALI WHOLESALE 4510 S BOYLE ST 4621 E 50TH ST 4159 BANDINI BLVD VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90023 HO SHIN LEE SEW GOOD JEANS INC CATELLUS DEVELOPMENT CORP 3047 BANDINI BLVD 5320 SANTA FE AVE CIO PROLOGIS VERNON, CA 90058 VERNON, CA 90058 841 APOLLO ST STE 350 EL SEGUNDO, CA 90245 HATIYA CORP E & C FASHION INC E & C FASHION INC 3626 LOS AMIGOS ST 2425 E 30TH ST 2425 E 30TH ST LA CRESCENT& CA 91214 VERNON, CA 90058 VERNON, CA 90058 E & C FASHION INC BIJAN PARTOVI PRINTING UNLIMITED 2425 E 30TH ST PO BOX 1158 2111-13 ANDERSON ST VERNON, CA 90058 S PASADENA, CA 91031 VERNON, CA 90058 PRINTING UNLIMITED RED POINT MFG INC FAR REACH INT'L INC 2111 A&B ANDERSON ST 2003 VERNON AVE 3055 FRUITLAND AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 33 TRIM INC FRANK & ME INC NISSY USA INC 2021 E 48TH ST PO BOX 1399 3121 BANDINI BLVD VERNON, CA 90058 DOWNEY, CA 90240 VERNON, CA 90058 BLING BLING INC SIGMA FOODS INC ARAMBURO PRODUCE 2101 E 37TH ST 4919 ALCOA AVE 1961 VERNON AVE VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 BON APPETIT ROYAL DENIM 10 LLC 4525 DISTRICT BLVD 4720 DISTRICT BLVD 5881 2ND ST VERNON, CA 90058 VERNON, CA 90058 VERNON, CA 90058 � Ab3AV-09-008-L .._..� 009L5 jpege6 al zasipin @09L5 ®AU3A%( F% wo:)-Aj8ne-mmm apldej a6e4:�as a;a a6eianogl;ue uolssaidLul Jam and Smudge Ffee Printing Use Avery@ TEMPLATE 51600 CONCEPTUAL TEXTILE PRINITING 5700 1 ST ST VERNON, CA 90058 PACIFIC COMMERCIAL TRUCK BODY 5802 FERGUSON DR COMMERCE, CA 90022 PRICE ZONE TRADING INC 2838 LEONIS BLVD VERNON, CA 90058 TRENT ANDERSON 3710 RIVER FARM DR WESTLAKE VILLAGE, CA 91361 KBG HOLDINGS PO BOX 2591 , CA 90255 PARCO IMEX INC 3680 SANTA FIE AVE VERNON, CA 90058 INTERNATIONAL TRC CO 3187 BANDINI BLVD VERNON, CA 90058 www.avery.com ® 1-800-GO-AVERY GRP PRIVATE LABEL DBA GRP 2190E 57TH ST VERNON, CA 90058 SALT & PEPPER CLOTHING INC 4770 E 50TH ST VERNON, CA 90058 BEST ALTERNATIVE 5333 DOWNEY RD VERNON, CA 90058 FANTASTIC CLOTHING LLC 3620 SANTA FIE AVE VERNON, CA 90058 NIMA DIST 2850 E 44TH ST VERNON, CA 90058 VAHID ESKANDARIAN 2721 E 46TH ST VERNON, CA 90058 ITC TEXTILE LTD 33815 CLAY RD LEWES, DE 19958 ALVARO SANCHEZ 3824 SANTA FIE AVE # 7 VERNON, CA 90058 BEST ALTERNATIVE 5333 DOWNEY RD VERNON, CA 90058 ROBERTS BROVEST PARTNERS 1038 S ROBERTSON BLVD STE #5 LOS ANGELES, CA 90035 CHALMERS CORPORATION 7901 CROSSWAY DR PICO RIVERA, CA 90660 ANDY'S SUPER BURGER 5831 SANTA FIE AVE VERNON, CA 90058 @09LS )AU3A f nv .A83AV-00-009- 6 UloxAjOAe-mmm 0091S 31jege6 al zasil►lD apldea a6e439s g;a a6winoggue uolssaidLul An a tc TY-BtERiE-DISTRIB UTION S 22S CL.A 0 i14A°_1-_CL.A 0 i/�. COMMUNITY SERVICES & WATER DEPARTMENT OFFICE MEMORANDUM W-n TO: Eric Fresch, City Administrator FROM: Samuel Kevin WiL4on!D)irector of Community Services &Water DATE: May 15, 2007 SUBJECT: WATER RATE INCREASE — Phase H The Community Services and Water Department has prepared an Engineer's Report on the potable water rate increase and Recycled Water Study, copies of which are enclosed herewith. Due to the increasing cost of purchasing and delivering water and the need to expend capital on essential maintenance and improvements to the water system an increase was recommended and made effective on June 1, 2006. In order to reduce the initial impact of the rate increase for City customers, the increase was implemented in two Phases. Phase I included one-half of the increase for fiscal year 2006 /2007 and Phase 11, with City Council approval, will include the full increase. The above rate increase was based on a rate study that was originally conducted in 1995 to formulate a rate structure for Vernon customers. This study continues to be valid and was the basis of computing the proposed water rates. Enclosed herewith is a synopsis of the proposed increase. It is recommended that the Phase 11 rate increase contained in the Engineer's Report be approved and the rate increase take effect August 1, 2007. If you are in agreement I will have the City Clerk sign the attached Notice of Public Hearing and a copy will be mailed to each customer and interested party. SKW/ca Enclosures c: Jeff Harrison 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 & Monday, July 23, 2007 at 10:00 a.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 August 1, 2007 is being proposed to cover increasing costs of purchasing and delivering water to the community and to cover the cost of essential maintenance and capital improvements to the Vernon water system (see reverse side for proposed water rates). The City last raised its water rates in 2006. 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 June 4, 2007 to July 23, 2007. 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 10:00 a.m. on July 23, 2007. Comments received after that date may not receive full consideration. If you challenge the adoption of the new water rates, you may be 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: Manuela Giron City Clerk The City of Vernon is proposing to increase water rates due to the increasing costs of purchasing and delivering water and the need to expend capital on essential maintenance and improvements to the Vernon water system, The City conducted a rate study in 1995 to formulate a rate structure for Vernon customers. This study continues to be valid and is the basis utilized in computing the proposed water rates. The following is a comparison of existing and proposed rates. If approved, the rate increase is proposed to take effect July 1, 2007. 1) Monthly charges for meters Meter Size Existing Rate Prouosed Rate 5/8" $5.13 $6.61 V $7.77 $9.91 1" $12.99 $16.52 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 consumption rates per 100 cubic feet Existing rate - $1.093 Proposed rate - $1.159 3) Minimum rates for metiers for fire related services for 4", 6", 8" and 10" meter sizes Existing rate - $2.00 . Proposed rate - $2.00 The charge for all water used shall be at the consumption rate shown in Section 2 and shall be payable semi-annually. 4) Minimum rates for unmetered services for fire protection purposes Monthly charge for sprinkler head Existing rate - $0.25/head Proposed rate - $0.25/head 5) Monthly square footage charge per square foot of building or outside storage Existing rate - $0.00291/square foot Proposed rate - $0.00337/square foot 6) Standby meter charge Meter. Size Existing and Proposed Existing Minimum Proposed Minimum Minimum Monthly Allowance Monthly Charge Monthly Charge 2" 6000 cf/month $107.04 $122.42 3" 15000 cf/month $241.68 $273.00 4" 30000 cf/month $457.45 $51295 6" 75000 cf/month $1,078.85 $1,199.75 8" 150000 cf/month $2,054.06 $2,267.30 The charge for water rates in excess of the monthly consumption allowance shall be at the water consumption rate as shown in Section 2. 7) Minimum charge for temporary meter installation and relocation Existing Rate Proposed Rate Initial Temporary Installation $200.00 $200.00 Relocation of Said Service $50.00 $50.00 Water furnished through said temporary connection shall be at a rate of one and one half times the consumption rate shown in Section 2. 8) Bond deposit for temporary meter Existing rate - $500.00 Proposed rate - $500.00 9) Rates for retail water businesses Existing and Proposed rates is one and one half times the meter charge and the consumption rate set forth in Sections 1 and 2 10) 1 Water rates per 100 cubic feet of recycled water Existing_Rate Proposed Rate Malburg Generating Station $0.480/100 cf No Change until January 1, 2019 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 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 May 15, 2007 Samuel Kevin Wilson, Director of Community Services and Water, has recommended that the rates established for water services be raised effective August 1, 2007, 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 mailed notice of a meeting on new or increased fees or service charges; and WHEREAS, the City Council of the City of Vernon held on July 23, 2007, 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 land 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 August 1, 2007. SECTION 4: The City Administrator 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 23th day of July 2007. (ATTEST: -.L 1 l: r L C 5 Cull City Administrator LEONIS C. MALBURG, Mayor 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, Nelly Giron., 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, June 13,2007 and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) Nelly Giron City Clerk - 3 - 1 2 3 Exhibit "A" Water Rates For The City of Vernon Water System Effective July 1, 2007 4 1. Monthly Charge For Meters (V.C.C. Sec. 25.2): 5 Meter Size Monthly Minimum Charge 6 5/8" $ 6.61 7 9.91 8 1" 16.52 9 33.05 10 11 2' 52.88 12 3" 99.15 13 4" 165.25 14 611 330.50 15 8" 528.80 16 2. Water Consumption Rates Per 100 Cubic Feet (V.C.C. Sec. 25.3): 17 For water used: $1.159/100 cubic feet 18 3. Standb Service Meter Charge (V.C.C. Sec. 25.3): 19 Meter Minimum Monthly Consumption 20 Size Allowance For Standby Service Monthly Charge 21 2" 6,000 cubic feet per month $ 122.42 22 23 3" 15,000 cubic feet per month 273.00 24 4" 30,000 cubic feet per month 512.95 25 6" 75,000 cubic feet per month 1,199.75 26 811 150,000 cubic feet per month 2,267.30 27 The charge for water in excess of the monthly consumption 28 allowance shall be the rate per cubic foot. A - 1 EXHIBIT "Are 0 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 W.C.C. Sec. 25.4): 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 Section 2 of Exhibit A, and shall be payable semiannually. 5. Minimum Rates for Unmetered Service for Fire Protection Purposes W.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: $0.00337 per square foot. 7. Minimum Charge for Temporary Installation and Relocation (V.C.C. Sec. 25.6) (each person, firm or corporation): Initial temporary installation: $ 200.00 MR 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. Bond or Deposit for Temporary Connection to Fire Hvdrant W.C.C. Sec. 25.7) (each person, firm or corporation): Amount of each bond or deposit: $500.00 A - 2 EXHIBIT "A" f 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 l and 2 of Exhibit A. 10. Water Rates per 100 Cubic Feet of Reclaimed Water W.C.C. Sec. 25.9) (each person, firm or corporation): Malburg Generating Station $0.480/100 cubic feet until January 1, 2019 Reclaimed water A - 3 $0.846/100 cubic feet EXHIBIT "A" at. .%; ENGINEERS REPORT WATER RATE INCREASE 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. a� M TABLE 1 WATER COSTS PER ACRE-FOOT 2001 12002 12003 2004 2005 2006 MWD Non Interruptible $478 $478 $457 $467 $489 $498 WRD Pump Assessment Fee $112 1 $112 1 $117.60 1 $115 $128.25 $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 D artment'Sup lies + 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 + 10.4% 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. 2 TABLE 3 PROJECTED OPERATING BUDGET FOR THF. W A T RR 1)F.P A R TMFMT XPENDITURE COMPONENT 2001 - 2002 Percent Increase Projected - 2005 - 2006 SALARIES 1101 REGULAR $1,017,321 17.96% $1,200,000 1102 OVERTIME $10,000 5001a $15,000 1103 CASUAL 0 0 0 SUB TOTAL ENEFITS $1027 21 183% $1 215 000 120 RETIREMENT $70,000 57.14% $110,000 2130 GROUP INSURANCE $73,050 84.81% $135,000 2140 UNEMPLOYMENT $5,922 1.32% $6,000 2150 WORKER'S COMPENSATION $31,320 -52.11% $15,000 160 AUTO INSURANCE $4,935 11.45% $5 500 2170 MEDICARE $3,500 171.43% $9,500 SUB TOTAL SUPPLIES AND OTHER SERVICES $188 727 48.89% $281,000 4524 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% $250,0010 5210 WATER TREATMENT $35,000 -157.14% $15,000 5220 UNCOLLECTABLES $10,000 20.00% $12,000 5230IN-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% $1,000 600 UTILITIES & COMMUNICATIONS $675,000 -2.22% $660,000 5700 VEHICLE LEASE $53,000 107.55% $110,000 5800 AUTOMOBILE ALLOWANCE 0 0 0 5900 BLDG & E UIPMENT 0 0 0 5910 EUIPMENT 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% $540,000 SUB TOTAL $4,995 467 4.09% $4 79] 000 EQUIPMENT OUTLAY 8400 AUTOMOBILE $76,000 11.84% $85,000 8500 NON -AUTO $132,259 51.22% $200,000 SUB TOT CAPITAL OUTLAY $208 259 36.85% $285 000 9000 CAPITAL PROJECTS $515 00 93.99% $1,000,000 9400 ALLOWANCE FOR BAD DEBT $50,000 $0 SUB TOTAL �ENTL $565 500 I $6985 273 76.99% 13.41 % $I,OOQ000 $7,922,000 4 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 Projected Budget Fire Related Costs Commodity : Labor Commodity: Non Labor Salaries 51101 Re tar $1200,000.00 $441600.00 $758,400.00 0 51102 Overtime $15,000.00 $5,520.00 $9,480.00 0 51103 Casual $0.00 $0.00 $0.00 0 t52120 Sub Total Retirement $1 215,000.00 $110,000.00 $447120.00 $40,480.00 $767,880.00 $69,520.00 0 0 Grow 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 Comp $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 $281,000.00 $350,000.00 $103,408.00 $175,000.00 $177,592.00 $0.00 $0 $175,000.00 Sub Total $350 000.00 $175,000.00 $0.00 $175 000.00 55100 Office Expense $1,500.00 $552.00 $948.00 0 55110 Pumped 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 Department Sulies 1 $250,000.00 $92,000.00 $158,000.00 0 55210 Water Treatment 1 $15,000.00 $5,520.00 0 $9,480.00 5 Acet No. Section Projected Budget Fire Related Costs Commodity: Labor Commodity: Non Labor 55220 Uncoliectibles $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 Uniforms $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 88400 Sub Total 1 Automobile $4 791,000.00 $85,000.00 $551 632.00 $42,500.00 $500,228.00 $0.00 $3 739,140.00 $42,500.00 88500 Non -Automobile $200,000.00 $100,000.00 0 $100,000.00 Acct No. Sub Total Section $285 000.00 Requested Budget $142,500.00 Fire Related Costs 0 Commodity: Labor $142 00.00 Commodity., Non Labor 99000 Capital Projects $1,000,000.00 $500,000.00 0 $500,000.00 Sub Total $1,000,000.00 Total $500,000.00 Total % of Budget in $ $0.00 Total % of Budget in $ $500,000.00 Total % of Budget in $ $7,922,000.00 $1,919,660.00 $1,445,700.00 $4,556,640.00 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. h h 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. 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 3/4" 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 W.C.C. Section 25.4 : For Phase I and II Sprinkler Connection Size Monthly Charge 4" $2.00 6„ $2.00 8„ $2.00 1V $2.00 The charge for all water used shall be at the rate shown in subsection 2, and shall be payable semi annually. 0 4• MIN VIUM RATES FOR UNMETERED SERVICE FOR FIRE PROTECTION PURPOSES (V.C.C. SECTION 25 4): For Phase I and II Monthly charge for sprinkler head: $0.25/head 5. MONTHLY SQUARE FOOT CHARGE (V 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 11- 0.00337 per square foot 6. STAND-BY METER CHARGE (V 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 Y9 77.73 15,000 cubic feet per month 241.68 4" 129.55 30,000 cubic feet per month 457.45 6" 1 259.10 75,000 cubic feet per month 1,078.85 8" J.414.56 150,000 cubic feet per month 12,054.06 Phase 2 Meter Size Meter Charge Minimum Monthly consumption Allowance for Stand-by Service Minimum Monthly Charge 2" 52488 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" 330.50 75,000 cubic feet per month 1,199.75 8" 528.80 150,000 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 (V.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 H 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 Tnhip S 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 S = Standby Revenues R = Hydrant Meter Revenues X—(S+R)=B B = Adjusted Commodity Related Labor Expense = $1,445,700.00 = $12,266.38 = $7,045.19 = $1,426,388.43 11 Y = 50% of the Adjusted Commodity Related Labor Y = 713,194.22 = Z (8991) 12 12 _ $713,194.22 Z = 6.61 SERVICE CHARGE - PHASE II T%h1P 6 Meter Size (Z)(7) Factor Proposed Monthly Meter Charge Present Meter Charge 5/8" 6.61 x 1 6.61 3.65 3/4" 6.61 x 1.5 9.91 5.63 i" 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" 6.61x15.0 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 = (.5B - .632 C + n _ A _ (.5) 1,426,388.43 - .632 (178,000) + 4,556,640.00 4447911.6 Proposed Commodity Charge = $1.159/100 C.F. Current Commodity Charge = $1.027/100 C.F. (12.9 percent Increase) 12 SQUARE FOOTAGE CHARGE CALCULATIONS — PHASE II 36.8% of Construction Related Revenues Assigned As Credit to Fire Related Cost U = Fire Related Costs = 1,919,660.00 V = Metered Fire Service Revenues = 22,313.85 U—V=T T = Adjusted Fire Related Costs=1,897,346.20 S = Projected Construction Related Revenues=178,000 R = Total Square Feet in Service Area = 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 TahlP 7 Meter Size (Z)(I- Factor Proposed Charges Phase I Present Meter Charge Proposed Charges Phase H 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 r 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 W 2. co 2. 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W 491 00 W 0y, C A 0% P. O� J rN+ po P 91 O� :.l O� � Obi 0000 O� 0000 A. b 0000 A � 000 A 0 rA O .p�Ap, J 0 W '00* b W W N Oo. O Lft O LLA N ib+ WO OD tO �o 00 00 Q� N 00 00 U W 00 O�0 N O' oo b tUi.� 00 A U O� A A b n 000 a N N r7 J - cm In ~ O% O A J O N V �O v [J A A O A -1 IJ O �V - ' �i Os W O to lA 00 O�0 O O� G W 00 �. �O W iT LA '0 \0 W O 00 tr 00 W tJ W 00 E9 Hi fA N N w N W W N W K J W VFW-. C W Tj W .�-. '00 J N U v 1 b . b N O tj - W O O O O 00 00 bo 00U b A U 00 O W 0000 O 00 e QD o o 00 ? oo o 00 W o W o \ O� 00 o o � N rn o Oi 00 o b O kT A m C+ A o @: RECYCLED WATER RATE STUDY MAY 2007 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 Requiring 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: $0.865 per 100 cubic feet* which does not include a credit for capital improvements, or $0.423 per 100 cubic feet* which includes a credit of $214.75 per acre foot for the capital improvement investment. $0.9156 - $0.493 = $0.423 * 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 $0.865 MGS Recycled Water Rate $0.423* NOTE: Since the recycled water is a relatively new system the City continues to collect data and experience on the cost to produce water and maintain the system and the water volumes sold. Therefore it is recommended that the current rate of $0.480 per hundred cubic feet be kept until such time as sufficient data is collected to determine the actual cost to operate the system is determined. 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 ($376.76 per acre-foot see Attachment 5). 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 No. 3 for blended water cost for potable water. The cost of potable water will be reduced from $288.38 per acre-foot to $249.38 per acre-foot. This will result in a savings of $354,900.00 to potable customers. However, it is assumed that all other fixed costs going to the potable rate including overhead, supplies, capital costs, depreciation, etc. will remain. While the cost of water will be reduced, there will be no reduction in the fixed costs. The volume of water sales will be reduced by the amount of recycle water sold thereby possibly offsetting the savings in water costs. The current proposed potable water rate is $1.159 per 100 cubic feet. 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 2006 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 - $22,987.00 = $1,422,713.00 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 - 100 cubic feet Commodity Charge = .5(1422713) -_ 632(178000) + 3809640 3794511.6 Potable Water Rate = $1.162 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 - $1.162)(3794511.6) _-$10,661.50 The recycled water rate would be $0.8649 per 100 cubic feet. See Attachment No. 5 for calculation. The recycled water rate could be reduced by $0.046 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 $0.819. Under this scenario the commodity rates would be: Potable Commodity Rate $1.162 Recycled Commodity Rate $0.865 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 $311.42 per acre foot instead of MWD water at a rate of $525 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 $320,370 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-$10,661. 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 coverall 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 1.162) + (1500 x 0.865)](435.6) = 5,171,312.50 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) = 5,171,312.50 Recycled Rate = z = 0.883 Check of Savings (1.159-1.162)(9100)(435.6) = (0.865-0.883)(1500)(435.6) -11,891 --11,761 Recycled water rate may be further reduced by $0.046 if City is no longer responsible for Hollydale Pump Station operation costs. Under this scenario the proposed rates would be: Potable Commodity Rate $1.159 Recycled Commodity Rate $0.883 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 line 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 water rates: Proposed Potable Rate Non-MGS Customer Recycled Water Rate MGS Recycled Water Rate $1.159 per 100 cubic feet $0.846 per 100 cubic feet $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 $317 $10.00 $327 25-50 $295 $9.00 $304 50-100 $274 $8.00 $282 100+ $251 $8.00 $259 * 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 $327 $8175 25-50 25 $304 $7600 50-100 50 $282 $14100 100+ 0 $259 $0 $29875 Average Cost per Acre -Foot $298.75 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 $327 $8175 25-50 25 $304 $7600 50-100 50 $282 $14100 100+ 125 $259 $32375 $62250 Average Cost per Acre -Foot $276.67 ATTACHMENT NO.2 Cost of Water Comparison Well Water Pump Assessment $138 Pumping O & M $75 $213 per acre foot Leased Well Water Lease Cost $250 Pump Assessment $138 Pumping O & M $75 $463 per acre foot MWD Water CBMWD Tier 1 Rate $525.00 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 $298.75 Central Basin Rebate ($200.00) $333.50 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 $276.67 Central Basin Rebate ($200.00) $311.42 per acre foot ATTACHMENT NO.3 Blended City Water Costs Type Cost Amount Cost of Water MWD $525 2561 $1,344,525 City Pumped $213 8039 $1,712,307 10600 $3,056,832 Blended Cost of Water Per Acre Foot = $288.38 Cost of Water Per 100 Cubic Feet = $0.662 Blended cost of potable water if 1500 acre feet of recycle water sold thereby reducing potable sales by 1500 acre feet. Type Cost Amount Cost of Water MWD $525 1061 $557,025 City Pumped $213 8039 $1,712,307 9100 $2,269,332 Blended Cost of Water Per Acre Foot = $249.38 Cost of Water Per 100 Cubic Feet = $0.5725 Water cost savings to potable customers (288.38 — 249.38)9100 = 354,900 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 = $333.50 Cost of Water Per 100 Cubic Feet = $0.7656 2700 acre-feet Recycled Distributed Recycled Water Cost Per Acre Foot = $311.42 Cost of Water Per 100 Cubic Feet = $0.7149 Type Cost Amount Cost of Water MWD $525 1061 $557,025 Recycled $311.42 1500 $467,130 City Pumped $213 8039 $1,712,307 Total Cost Per Acre Foot Cost Per 100 Cubic Foot Total Savings to City 10600 $2,736,462 = 258.16 per acre foot = 0.5926 $3,056,832 $2,736,462 $320,370 Difference in Blended Cost with and without Recycled Water $288.38 - $258.16 = $30.22 per acre foot 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 for 1200 acre-feet for 1200 acre-feet Hollydale Pump Station' $1,423,000 $142,6393 $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 $358,5004 $298.75 Central Basin Capital Rebate6 ($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 $398.84 = $0.9156 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 approximately 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 Acre -Feet of Water Purchased The reduction is due to a Central Basin sliding scale on commodity charge Cost per acre-feet = 398.84 — 298.75 + 276.67 Cost per acre-feet = 376.76 = 0.865