Resolution No. 2012-005RESOLUTION NO. 2012-.05
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 memo dated October 27, 2011, the Director of
Community Services and water, has recommended that the rates
established for water services be adjusted effective January 1, 2012,
to reflect the City's increased cost in providing water service; 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, on December 20, 2011, the City Council of the City
of Vernon called its regularly scheduled council meeting to order and
adjourned the same to a Special Council Meeting on December 22, 2011,
due to lack of quorum; and
WHEREAS, on December 22, 2011, the City Council of the City
of Vernon called its Special Council meeting to order and adjourned
the same to January 3, 2012, due to lack of quorum; and
WHEREAS, by email dated December 22, 2011, the Director of
Community Services and Water, has recommended that the rates
established for water services be adjusted effective February 1, 2012,
to reflect the City's increased cost in providing water service; and
WHEREAS, on January 3, 2012, the City Council of the City of
Vernon held a public meeting to consider water rate increases during
which time 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.
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
establishes 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 February 1, 2012.
- 2 -
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 3rd day of January, 2012.
Name: William J. Davis
Title: -Ma / Mayor Pro-Tem
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2012-05, was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Tuesday, January 3, 2012, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this 5 day of January, 2012, at Vernon, California.
(SEAL)
4
EXHIBIT A
Exhibit "A"
Water Rates For The City of
Vernon Water System
Effective February 1, 2012
1.
Monthly Charge For Meters (V.C.C. Sec. 25.2):
Meter Size Monthly Minimum Charge
5/8"
$ 6.485
%ri
9.727
1"
16.212
1 Y2
32.425
2"
51.879
P
97.274
4"
162.123
6"
324.247
8"
518.795
2.
Water Consumption Rates Per 100
Cubic Feet (V.C.C. Sec. 25.3):
For water used:
$1.496/100 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
$ 89.76
3"
15,000 cubic feet per month
224.40
4"
30,000 cubic feet per month
448.80
6"
75,000 cubic feet per month
1,122.00
8"
150,000 cubic feet per month
2,244.00
The charge for water in excess
of the monthly consumption
allowance shall be the rate per
cubic foot.
0
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Minimum Rates for Meters for Fire -Related Services (V.C.C.
Sec. 25.4):
inkler Connection Size .
4"
6"
81,
10'.
Monthly Charge
$ 2.00
2.00
2.00
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.
Minimum Rates for Unmetered Service for Fire Protection
Purposes (V.C.C. Sec. 25.4):
Monthly charge per sprinkler head: $0.25/head
Square Footage Charge (V.C.C. Sec. 25.5):
Monthly charge for fire -related services based on the square
footage of buildings: $0.00274 per square foot.
Minimum Charge for Temporary Installation and Relocation
W.C.C. Sec. 25.6) (each person, firm or corporation):
Initial temporary installation: $ 200.00
Relocation of said service: $ 50.00
The water furnished through said temporary
connection shall be charged at the rate of one and
one-half times the consumption rate set forth in
Section 2 of Exhibit A.
Bond or Deposit for Temporary Connection to Fire Hydrant
(V.C.C. Sec. 25.7) (each person, firm or corporation):
Amount of each bond or deposit: $500.00
9. Rates for Retail Water Business (V.C.C. Sec. 25.8) (each
person, firm or corporation):
The rate shall be one and one-half times the meter charge and
the water consumption rate set forth in Sections 1 and 2 of
Exhibit A.
10. Water Rates per 100 Cubic Feet of Reclaimed Water (V.C.C.
Sec. 25.9) (each person, firm or corporation):
Malburg Generating Station $0.434/100 cubic feet
until January 1, 2019
Reclaimed water: $1.381/100 cubic feet
A - 3
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: January 5, 2012
TO: Rory Burnett, Finance Director/City Treasurer
Masami Higa, Assistant Finance Director
Alex Kung, Senior Accounting Manager
Joaquin Leon, Deputy City Treasurer
Anthony Serrano, Customer Service Supervisor
Martha Valenzuela, Director of Personnel/Business Services
S. Kevin Wilson, Director of Community Services & Water
FROM: Willard Yamaguchi, City Clerk A
RE: Resolution No. 2012-05 — 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
Transmitted herewith is a copy of Resolution No. 2012-05 referenced above, which was approved by City
Council on January 3, 2012.
Thank you.
WY:dj
Attachment
c: Resolution No. 2012-05
O 'L
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µ�y�'ftt ,MOV•
COMMUNITY SERVICES & WATER DEPARTMENT
OFFICE MEMORANDUM
TO: Mark Whitworth, City Administrator
h A
FROM: Samuel Kevin Wilson, Director of Community Services & Water
DATE: October 27, 2011
SUBJECT: Water Rate Adjustment Recommendation
Background
The City of Vernon (City) last increased its water rates on January 1, 2011. Since that time, the cost to
provide water has increased significantly. Recent environmental rulings and persistent drought conditions have
curtailed Water Replenishments District's (WRD) ability to purchase replenishment water at a reasonable cost.
As a result, WRD has increased the replenishment assessment (RA) this year by 19.0 percent. These same
conditions have limited Metropolitan Water District's (MWD) ability to deliver State Water Project supplies to
the southern region of the state. This has resulted in a price escalation of 44.09 percent in just two years.
Moreover, there has been a significant reduction in water sales due to conservation measures enacted
by the City in 2009, and a continued decline in economic activity. For example, in fiscal year 2007-2008 the
City distributed 10,912 acre-feet of water by way of a combination of pumped and purchased water. It is
estimated that in fiscal year 2011-2012 that the City will distribute 7,900 acre-feet of water. This equates to a
28.0 percent reduction in water use over a four year period.
The Water Department is estimating that water rates will need to be adjusted based on the 2011-2012
budget. The majority of the proposed water rate adjustment is driven by the increase in WRD and MWD water
costs. The remaining components of the water rate adjustment are related to the decrease in water sales. The
reduction in the square footage rate, as reflected in the Table No. 1 below, is a result of the City's continued
effort to reduce fixed costs.
Table No. 1- ProDosed Potable Water Rates
Current Rate
Proposed Rate
Percent Difference
Commodity Rate
$1.280
$1.496
16.8 Percent Increase
Square Footage Rate
$0.0031
$0.00274
11.6 Percent Decrease
Table No. 2 — Proposed Meter Charve
Meter Size
5/8"
Current Rate
$6.610
Proosed Rate
$6.485
Percent Difference
1 -1.91
3/4"
$9.910 1
$9.727
1 -1.91
Meter Size
Current Rate
Proposed Rate
Percent Difference
F,
$16,520
$16.212
-1.91
1.5"
$33.050
$32.425
-1.91
2.0"
$52.880
$51.879
-1.91
3.0"
$99.150
$97.274
-1.91
4.0"
$165.250
$162.123
-1.91
6.0"
$330.500
$324.247
-1.91
8.0"
$528.800
$518.795
-1.91
Recycled Water Rates
The recycled rates were developed based on a composite of the cost of water, estimated water sales,
administrative costs, the capital credit, and supplies. The proposed recycled water rates are reflected in Table
No. 3.
Table No. 3 —Proposed Reevcled Water Rates
Current Rate
Proposed Rate
Percent Difference
Recycled-CBMWD
Service Area
$1.433
$1.381
3.6Decrease
Recycled-Malburg
Generating Station
$0.488
$0.434
11.1 Decrease
Recommendation
Attached herewith is a Staff Report recommending that the City Council adopt the water rate
adjustments at the December 20, 2011 City Council meeting and that they be made effective January 1, 2012.
Thank you.
SKW/sr
Enclosures
RECEIVEDQL
5
OCT 3 1 2011
CITY CLERK'S OFFICE STAFF REPORT
RECEIVED
OCT 2 7 2011
CITY ADMINISTRATION
COMMUNITY SERVICES & WATER DEPARTMENT
DATE: October 27, 2011
G
TO: Honorable Mayor and City Council
FROM: Samuel Kevin Wilson, Director of Community Services & Water
RE: Water Rate Adjustment Recommendation
Potable Water Rates
In 1995 the City of Vernon (City) retained Donald R. Howard Consulting Engineers, Inc.
(Howard Study) 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.
Backeround
The City last increased its water rates on January 1, 2011. Since that time, the cost to produce
water has increased significantly. A vast majority of the water the City distributes is extracted from
groundwater supplies using production wells to facilitate this process. The City is required to pay the
Water Replenishment District (WRD) a Replenishment Assessment (RA) of $244.00 for every acre-foot
of groundwater produced. The WRD uses the revenues derived from the RA to purchase water that is
used to replenish groundwater supplies in the Central Water Basin. However, recent environmental court
rulings along with persistent drought conditions have greatly curtailed WRD's ability to secure
replenishment water. As a result, WRD has been unable to purchase replenishment water from
Metropolitan Water District (MWD) since May of 2007. This has forced WRD to secure replenishment
water at exceedingly high costs. These costs have been passed on to local purveyors by way of rate
increases of 59.47-percent in just three years. This year's rate increase is 19.0 percent. Table No. 1
illustrates the cost escalation:
Table No.1
Prior to Jul 1, 2009
Date of IncreaseHE:Ej
WRD Re lenishment Fee Per Acre -Foot
$153.00
Jul 1, 2009
$181.85
Jul 1, 2010
$205.00
Jul 1, 2011
$244.00
Total Increase: 59.47 Percent
Environmental court rulings coupled with drought conditions have greatly reduced the surface
water supplies available from the State Water Project. This has limited MWD's ability to deliver water to
its member agencies and has resulted in an escalation of surface water costs. The cost MWD charges for
an acre-foot of water have increased by nearly 44.09-percent in a two and a half year period. Table: No; 2
illustrates the cost increases:
Table No. 2
Date of Increase -Potable Water
Cost Per Acre -Foot
Prior to July 1, 2009
$635.00
July 1, 2009
$653.00
September 1, 2009
$781.00
January 1, 2010
$791.00
July 1, 2010
$805.00
Janmy 1, 2011
$855.00
July 1, 2011
$859.00
January 1, 2012
$915.00
Total Increase: 44.09 Percent
It is estimated that the City will use approximately 7,900 acre-feet of water for the 2011-2012
fiscal year. Of this, approximately 6,900 acre-feet will be extracted utilizing the City's adjudicated water
rights. The remaining 1,000 acre feet will be purchased from CBMWD. There has been a significant
reduction in water sales due to conservation measures enacted by the City in 2009, and a continued
decline in economic activity in the City. In fiscal year 2007-2008, the City distributed 10,912 acre-feet of
water by way of a combination of pumped and purchased water. This equates to a 28.0 percent reduction
in water use over a four year period.
The City's water rates are split into three components: a meter charge; a commodity charge, and;
a square footage charge. The Howard Study determined how the Water Department's costs should be split
among the three charges to accurately capture costs. Each expense account is split into a fire related cost,
a commodity labor cost, and a commodity non -labor cost. The commodity rate is based on providing
revenue to cover 100-percent of the commodity non -labor costs and 50-percent of the commodity labor
costs. The meter charges are set so that revenues collected will equal the remaining 50-percent of the _.
commodity related labor expenses. Finally, the square footage revenues should cover 100-percent of the
fire related expenses.
Based on the proposed 2011-2012 fiscal year budget, the'water rates should be adjusted. This
budget includes a projected heed of $660,000 in capital improvements during the course of the year. The
Water Department prefers to fund its small capital projects on a pay as you go formula, as opposed to
bonding for the funds and incurring additional interest and administrative costs.
Proposed Rates
The Water Department is estimating that water rates will need to be adjusted based on the
proposed budget. The current and proposed rate for potable water is illustrated in Table Nos. 3 and 4. The
majority of the water rate increase is driven by the increase in water costs to the City. The reduction in the
square foot rate is a result of the City's continued effort to reduce its fixed costs. Appendix "I" attached
hereto provides the budget breakdown and Appendix " 2" attached hereto contains the rate calculations.
Table No. 3
Current Rate
Proposed Rate
Percent Difference
Commodity Rate
$1.280
$1.496
16.8-Percent Increase
Square Foota a Rate
$0.0031
$0.00274
11.6-Percent Decrease
Table No. 4 - Meter Charue
rent Rate
10
Proposed Rate
$6.485
Percent Difference
-1.9
M
10
$9.727
-1.9
520
$16.2121.9
050
$32.425
1.9
880
$51.879..150
$97.274
1.9
4.0"
$165.250
$162. 223
-1.9
6.0"
$330.500
$324.247
-1.9
8.0"
$528.800 1
$518.795 1
-1.9
Rate Comparison
The City bf Vernon performed a cost comparison study to ascertain how Vernon's current and
proposed potable rate structure compares with that of neighboring cities. Two manufacturing operations
in the City were used in the study. The results of the study, illustrated in Table No. 5, demonstrate that
Vernon's proposed rate structure remains exceedingly low when compared to neighboring cities:
Table No. 5
Agency/Company
Business
Cost Per
HCF
Monthly Water
Consumption in
HCF/Units
Average Monthly
Cost
Average
Annual Cost
Ci of Vernon Current
Business "A"
$1.280
37,000
$47,360.00
$568 320.00
City of Vernon (Proposed)
Business "A"
$1.496
37,000
$55,352.00
$664,224.00
CijK ofIndustry-La Puente
Business"A"
$1.62
37,000
$59,940.00
$719 80.00
City of Vernon (Proposed with SQ
Business "A"
$1.91
37,000
$70,670.00 $848,040.00
Ci of Industry -Rowland
Business"A"
$2.26
37000
$83,620.00 $1,003,440.00
Carson -Cal Water Serviee
Business "A"
$2.86
37,000
$105,820.00 $1,269,840.00
Carson -Golden State
Business "A"
$2.96
37,000
$109,520.00 $1,314 240.00
Ci of Santa Fe Srin .Golden State
Business "A"
$2.96
37,000
$1097520.00 $1,314,240.00
City of Commerce -Cal Water Service
Business"A"
I $2.99
1 37,000
$110,630.00 $1,327,560.00
Springs
Business "A"
$3.50
37,000
$129,500.00 $1,554,000.00
"LADWP
Business"A"
$3.78
37,000
$139860.00 $L678,320.00
CiLy of Vernon (Curent)Business"B"
$1.280
9,500
$12,160.00 $145,920.00
Cify of Vernon (Proposed)
Business'B"
$1.496
91500
$14,212.00 $170,544.00
Ci of Industry -La Puente
Business"B"
$1.62
9,500
$15,390.00 $184,680.00
Ci of Vernon (Proposed with SF
Business"B"
$1.91
9,500
$18,145.00 $217,740.00
City of Industry -Rowland
Business "B"
$2.26
9 500 1
$21 470.00 1 $257,640.00
Carson -Cal Water Service
Business"B"
$2.86
9,500
$27,170.00 $326,040.00
City of Santa Fe Srin -Golden State
Business "B"
$2.96
9,500 -
$28,120.00 $337,4 -- --
Agency/Company
Business
Cost Per
HCF
Monthly Water
Consumption in
HCF/Units
Average Monthly
Cost
Average
Annual Cost
Carson -Golden State
Business'B"
$2.96
9,500
$28,120.00
$337,440.00
City of Commerce -Cal Water Service
Business"B"
$2.99
9,500
$28,405.00
$340,860.00
City of Santa FeSprings
Business"B"
$3.50
9,500
$33,250.00
$399,000.00
LADWP
Business "B"
$3.78
9,500
$35,910.00
$430,920.00
A vast majority of water agencies do not have a square footage charge. For comparison purposes
the square footage rate could be converted into a commodity rate by dividing the cost assigned to the
square footage charge and dividing it by the units of water sold. By making this calculation the square
footage rate would equate to a commodity rate of $0.4146/HCF. Adding that to the proposed commodity
rate of $1.496 equates to a net equivalent rate of $1.91/HCF. Table No. 6 illustrates a comparison of this
equivalent rate with water purveyors in close proximity to the City of Vernon:
Table No. 6
Agency Name
Cost Per HCF
City of Industry - La Puente Valley County Water
District
$1.62
City of Vernon (Proposed with SF
$1.91
Maywood Mutual No. 3
$2.10
City of Indust — Rowland Water District
$2.26
City of Long Beach Tier II Rate
$2.43
City of Pasadena Block 2 Rate
$2.64
City of Carson — Golden State Water Company
$2.96
California Water Service -Commerce
$2.99
City of Glendale
$3.04
City of Santa FeSprings
$3.50
El
Recycled Water Rates
The Central Basin Municipal Water District (CBMWD) has constructed a backbone recycled
water distribution system in the southeast area of Los Angeles County. This system provides recycled
water to the City of Vernon. CBMWD has established certain water rates for its retail customers; one for
the Malburg Generating Station, and another for all other customers. Similarly, the City's retail rate is
also made up of two rates.
Table No. 6 illustrates CBMWD's water rate increases commencing on July 1, 2011.
Table No. 6 — CBMWD Reeveled Water u.to.
Malburg
Malburg
CBMWD
CBMWD
Generating
Generafing
Service
Service
Station
Station
Area Rate
Area Rate
Rate Prior
Rate
Volume in
Prior to
Effective
Percent
to
Effective
Percent
Acre Feet
Jul 1, 2011
Jul 1, 2011
Increase
Jul 1, 2011
Jul 1, 2011
Increase
0-25
506
536
6.0
357
368-
3.0
25-50
506
536
6.0
332
342
3.0
50-100 1
460
488
6.0
308
317
3.0
1 00 FI
460
488 1
6.0 1
283
291
3.0
The City has entered into an agreement with CBMWD for the purchase of recycled water for the
Malburg Generating Station. This agreement sets forth the cost of recycled water to the City for this
project and limits annual rate increases to 3%. The City however, is responsible for all electrical costs for
the booster plant serving the Vernon area. The City paid for the construction of the pipeline extension.
The parties agreed that the City will get a capital credit over time to repay the City for its initial
expenditure on the pipeline. The capital credit of $200.00 per acre-foot was subtracted from the water cost
in order to determine the Malburg Generating Station rate.
The recycled rates were developed based on a composite of the cost of water, estimated water
sales, administrative costs, the capital credit, and supplies. The proposed recycled water rates are reflected
in Table No. 7. The calculation of the recycled water rate is contained in Appendix "3."
Table No. 7
Current Rate
Pro osed Rate
Percent Difference
Recycled-CBMWD
Service Area
$1.433
$1.381
3.6-Percent Decrease
Recycled-Malburg
Generating Station
$0.488
$0.434
11.1-Percent Decrease
Recommendation
A Public Hearing will be held on December 20, 2011 at 9:00 a.m. to solicit comments in
accordance with the provisions of Proposition 218. At the conclusion of the Public Hearing, it is my
recommendation that the water rate adjustments be adopted at the December 20, 2011 City Council
meeting and that they be made effective January 1, 2012.
SKW/sr
Enclosures
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Appendix 112"
Potable Water Rate Calculation
Calculation of City of Vernon Water Rates
Service Charge Calculation
Meter Size
Number of Meters Capacity Factor
Number of Meters X
(X)
Capacity Factor
5/8"
27
1
27
3/4"
37
1.5
55.5
1"
254
2.5
635
1.5"
174
5
870
2.0"
531
8
.4248
3.0"
52
15
780
4.0"
58
25
1450
6.0"
24
50
1200
8.0"
1
80
80
Total
1158
9345.5
X = Commodity Related Labor Expense = $1,458,518.22
S = Standby Revenues = $2,000.00
R = Hydrant Meter Revenues = $2,000.00
B = Adjusted Commodity Related Labor Expense
X-(S+R) = B = $1,454,518.22
Y = 50% of the Adjusted Commodity Related Labor Expense $727,259.11
Monthly Meter Charge Factor = Z
Z = Y/(9345.5)(12) 6.48493134
(X) x (Z) = Proposed Meter Charge
I
Appendix 112"
Potable Water Rate Calculation
Proposed Meter Charge
Meter Size and
(Z) Factor
Proposed Monthly
Present Monthly
X Factor
Meter Charge
Meter Charge
5/8"
1
x
6.48493134
$6.485
$6.610
3/4"
1.5
x
6.48493134
$9.727
$9.910
1"
2.5
x
6.48493134
$16.212
$16.520
1.5"
5
x
6.48493134
$32.425
$33.050
2.0"
8
x
6.48493134
$51.879
$52.880
3.0"
15
x
6.48493134
$97.274
$99.150
4.0"
25
x
6,48493134
$162.123
$165.250
6.0"
50
x
6.48493134
$324.247
$330.500
8.0"
80
x
6.48493134
$518.795
$528.800
-1.89% percent increase
Commodity Calculation Charge
B = Adjusted Commodity Related Costs = $1,454,518.22
50% of Adjusted Commodity Labor Costs = $727,259.11
C = Construction Related Projected Revenues $20 000.00
Note: 63.2% of Construction Related Revenues Assigned
As a Credit Against Commodity Charge
N = Commodity Non Labor Costs = $4,020,251.20
Projected Water Sales in Acre Feet = 7,268.00
A = Projected Water Sales in 100 CF 3,165,940.80
Proposed Commodity Charge = (.5 B - .632 C+N) / A $1.496
Current Commodity Charge = $1.280
16.84% percent increase
2
Appendix " 2"
Potable Water Rate Calculation
Square Footage Charge
36.8 % of Construction Related Revenues Assigned Credit to Fire Related Cost
U = Fire Related Costs = $1,385,012.580
V = Metered Fire Service Revenues = $65,000.000
T = Adjusted Fire Related Costs
T=U-V = $1,320,012.580
C = Projected Construction Related Revenues = $20,000.000
Note: 36.8% of Construction Related Revenues assigned
as credit towards Square Footage Charge
R = Total Square Feet in Service Area = 39,866,402.00
Proposed Square Footage Charge Per Year = (T - .368C) / R = 0.032926287
Proposed Square Footage Charge Per Month = 0.0027439
Current Square Foot Charge Per Month = 0.0031
-11.49% Percent increase
3
Appendix " 2"
Potable Water Rate Calculation
Total revenue under current rates
Meter
Number of 5/8" meter
27
$6.610
$2,141.64
Number of 3/4" meter
37
$9.910
$4,400.04
Number of 1" meters
254
$16.520
$50,352.96
Number of 1.5" meter
174
$33.050
$69,008.40
Number of 2" meters
531
$52.880
$336,951.36
Number of 3" meters
52
$99.150
$61,869.60
Number of 4" meters
58
$165.250
$115,014.00
Number of 6" meters
24
$330.500
$95,184.00
Number of 8" meters
1
$528.800
$6,345.60
$741,267.60
Consumption
$1.280 3,165,940.80 $4,052,404.224
Square Foot
0.0031 39,866,402.00 $1,483,030.154
Standby Revenues = $2,000.000
Hydrant Meter Revenues = $2,000.000
Construction Related Projected Revenues = $20,000.000
Metered Fire Service Revenues $65,000.000
Total revenues $6,365,701.98
4
Appendix 112"
Potable Water Rate Calculation
Total revenue under proposed rates
Meter
Number of 5/8" meters
27
$6.485
$2,101.12
Number of 3/4" meters
37
$9.727
$4,318.96
Number of 1" meters
254
$16.212
$49,415.18
Number of 1.5" meters
174
$32.425
$67,702.68
Number of2" meters
531
$51.879
$330,575.86
Number of 3" meters
52
$97.274
$60,698.96
Number of4" meters
58
$162.123
$112,837.81
Number of 6" meters
24
$324.247
$93,383.01
Number of 8" meters
1
$518.795
$6,225.53
$727,259.11
Consumption
Square Foot
Standby Revenues =
Hydrant Meter Revenues =
Construction Related Projected Revenues =
Metered Fire Service Revenues
$1.496 3,165,940.80 $4,734,870.310
0.002743857 39,866,402.00 $1,312,652.580
Total revenues
$2,000.000
$2,000.000
$20,000.000
$65,000.000
$6,863,782.00
5
Appendix "2',
Potable Water Rate Calculation
Variables
Commodity Related Labor Expense =
Standby Revenues =
Hydrant Meter Revenues =
Construction Related Projected Revenues =
Commodity Non Labor Costs =
Projected AF of Water Sales =
Fire Related Costs =
Metered Fire Service Revenues
$1,458,518.22
$2,000.00
$2,000.00
$20,000.00
$4,020,251.20
7,268.00
$1,385,012.58 $6,863,782.00
$65,000.00
Total Square Feet of Building Area in Service Area 39866402.00
Number of 5/8" meters
27
Number of 3/4" meters
37
Number of 1" meters
254
Number of 1.5" meters
174
Number of 2" meters
531
Number of 3" meters
52
Number of 4" meters
S8
Number of 6" meters
24
Number of 8" meters
1
Current Commodity Rate 1.28
Current Square Footage Rate Per Month 0.0031
0
Appendix "3"
MALBURG GENERATING STATION RECYCLED WATER RATE
Month
Consumption
Cost
Credit
Power
Acre -Feet
11-May
16.58
$
5,919.00
$
3,316.00
$
722.00
11-Apr
22.47
$
8,022.00
$
4,494.00
$
861.00
11-Mar
66.01
$
22,156.00
$
13,202.00
$
633.00
11-Feb
66.97
$
22,451.00
$
13,394.00
$
816.00
11-Jan
45.19
$
15,628.00
$
9,038.00
$
604.00
11-Dec
62.8
$
21,167.00
$
12,560.00
$
591.00
11-Nov
80.5
$
26,619.00
$
16,100.00
$
757.00
11-Oct
76.06
$
25,252.00
$
15,212.00
$
948.00
11-Sep
92.68
$
30,370.00
$
18,536.00
$
1,387.00
11-Aug
62.78
$
22,547.00
$
13,456.00
$
1,674.00
11-Jul
51.89
$
17,807.00
$
10,378.00
$
1,593.00
11-Jun
5.91
$
2,074.00
$
1,082.00
$
958.00
Total
649.84
$ 220,012.00
$
130,768.00
$
11,544.00
Total cost of water = Cost + Power - Credit = $ 100,788.00
City supplies services and overhead 15% $ 15,118.20
Total Cost to supply recycle water to MGS 2010 -2011 $ 115,906.20
Water cost to increase by 3% in 2011-2012
Total cost to supply recycled water to MGS 2011-2012 $ 122,860.57
Recycle Water Rate 2012 = cost/consumption $ 0.434
Recycled Water Rates All other coustomers
Assumes that that City will sell 50 acre feet a month of recycle water
Central Basin Water rate for 50 acre feet per month = (50Af x $536) = $26,150/mon.
Total water Sales for the year $ 313,800.00
City supplies services and overhead 15% $47,070.00
Total cost $360,870.00
Recycle water rate for all other customers = cost / consumption $ 1.381
1
Barcia, Ana
From:
Yamaguchi, Willard
Sent:
Tuesday, December 27, 2011 8:11 AM
To:
Muro, Evangelina
Cc:
Barcia, Ana
Subject:
FW: Water rates
Please make the changes referred to below. Thanks
-----Original Message -----
From: Wilson, Kevin
Sent: Thursday, December 22, 2011 5:28 PM
To: Serrano, Anthony; Rigg, Scott; Yamaguchi, Willard
Subject: Water rates
The City council meeting was adjourned today, so the water rate adjustment resolution was
not voted on and will:not be heard until January 3, 2012. Therefore the new rates will
not go into effect until February 1, 2012 if approved.
Willard we will need to change the resolution to reflect the new date that the water rates
will take effect on. Anthony please make sure the water rates are not changed until
approved by council.
1
12/6/2011
City of Vernon
Proposed Water Rate Adjustments
Water Departments Mission
To provide high quality water at the lowest cost possible
while maintaining the City's infrastructure to
acceptable standards.
The City's Water System consists of seven above ground
reservoirs and one below ground reservoir for a total
storage capacity of 16.75 million gallons. The City has
approximately 257,000 linear feet of pipe in the ground
and distributed over a.6 billion gallons of water in
2010.
12/6/2011
Vernon Water Service Area
Water Sources
City obtains water from three sources:
Groundwater wells in which the City is required to pay
a fee to the Water Replenishment District to extract
water from the basin.
• Purchase of Surface Water from Central Basin
Municipal Water District (e.g. Colorado River and
State Water project)
• Recycle Water from the Central Basin Municipal Water
District
E
12/6/2011
WRD Replenishment Fees
Date of Increase
WRD Replenishment Fee Per
Acre -Foot
Prior to July 1, 2009
$153.00
July 1, 2009
$181.85
July 1, 2010
$205.00
July 1, 2011
$244.00
Total increase: 59.47-Percent
CBMWD Fees
te of Increase -Potable
ter
Cost Per Acre -Foot
or to July 1, 2009
$635.00
y 1, 2009
[September
$653.00
1, 2009
$781.00
uary 1, 2010
$791.00
y 1, 2010
$805.00
January 1, 2011
$855.00
July 1, 2011
$859.00
January 1, 2012
$915.00
Total Increase: 44.09-Percent
3
12/6/2011
Rate Design
In 1995 the City of Vernon Retained Donald Howard
Consulting Engineers Inc. to perform a rate design
study for the City of Vernon Water Department, the
concepts developed in the Study continue to be valid.
Water Costs are broken into three components to
ensure every customer is paying for its fair share of
costs to operate the water system. The City wanted to
ensure that those users that consumed very little water
were paying their fair share to operate and maintain
the piping, pumping and reservoir systems to provide
adequate fire flow to a facility or building.
Rate Design
The rate design developed by Howard breaks all Water
Costs into three components based on a formula
contained in the Study.
• Fire Related Costs
• Commodity Labor Costs
• Commodity Non Labor Costs
12
12/6/2011
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5
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11
12/6/2011
k
Rate Design
The City Water Rate consists of three components:
• Commodity Charge
• Meter Charge
• Square Footage Charge
The Commodity Charge captures i00% of the commodity
non labor and 50% of the commodity labor expenses.
The Meter Charge captures the remaining 50% of the
commodity labor related expenses.
The Square Footage Charge captures i00% of the fire related
expenses.
Rate Calculations
Other Sources of Water Revenues
• Standby Revenues = $a,0oo.00
• Hydrant Meter Revenues = $2,000.00
• Construction Related projected revenues = $ao,000.00
Projected AF of Water Sales = 7,268.00
7
12/6/2011
Rate
Calculations
- Meter Charges
Service Charge Calculation
Number of
Meter Size
Number of Meters Capacity Factor Meters X
(X) Capacity Factor
5/8"
27
1 27
3/4"
37
1.5 55.5
1"
254
2.5 635
1.5"
174
5 870
2.0"
531
8 4248
3.0"
52
15 780
4.0"
58
25 1450
6.0"
24
50 1200
8.0"
1
s0 80
Total
1158
9345.5
Rate Calculations - Meter Charges
X = Commodity Related Labor Expense = $1,458,518.22
S = Standby Revenues = $2,000.00
R = Hydrant Meter Revenues = $2,000.00
B = Adjusted Commodity Related Labor Expense
X-(S+R) = B = $1,454,518.22
Y= 50% of the Adjusted Commodity Related Labor Expense $727,259.11
Monthly Meter Charge Factor = Z
Z = Y/(9345.5)(12) 6.48493134
(X) x (Z) = proposed meter charge
12/6/2011
Rate
Calculations
- Meter
Charges
Proposed Meter Charge -
Meter Size and
(Z)Factor
Proposed Monthly
Present Monthly
X Factor
Meter Charge
Meter Charge
5/8"
1 x
6.48493134
$6.485
$6.610
3/4"
1.5 x
6.48493134
$9.727
$9.910
1"
2.5 x
6.48493134
$16.212
$16.520
1.5"
5 x
6.49493134
$32.425
$33.050
2.0"
8 x
_ 6.48493134
$51.879
$52.880
3.0"
15 x
6.48493134
$97.274
$99.150
4.0"
25 x
6.48493134
$162.123
$165.250
6.0"
50 x
6.48493134
$324.247
$330.500
8.0"
80 x
6.48493134
$518.795
$528.800
-1.89% percent increase
ate Ca cu a 6ons
Commodity Charge
B=Adjusted Commodity Related Costs= -
S1,454,518.22
50% of Adjusted Commodity Labor Cosh =
$727,259.11
C = Construction Related Projected Revenues
$20,000.00
Note: 63.2% of Construction Related Revenues assigned
as a credit against Commodity Charge
N = Commodity Non Labor Cosh =
$4.020,251.20
Projected Water Sales in acre feet= 7,268.00
A= projected water sales to 100 CF 3,165,940.80
Proposed Commodity Charge= (,5 B-.632 C+N) /A $1.496
Current commodity Charge = $1.280
16.84% percent increase
f
12/6/2011
Rate CaIcul-a-ti`on`s".-
Square Footage Charges
36.8 % of Construction Related Revenues Assigned Credit to Fire Related Cost
U = Fire Related Costs =
$1,385,012.580
V - Metered Fire Service Revenues =
us,000.000
T- Adjusted Fire Related Cons
T=U-V
S1,320,012.580
C= Projected Contruction Related Revenues -
no,000.000
Note: 36.8 %of Construction Related Revenues assigned
so credit towards Square Footage Charge
R=Tom1 Square Feet in Service Arc. =
39,966,402.00 Square R.
Proposed Square Footage Charge per year = (T-.368Q I =
0,032926287
Proposed Square footage charge per month=
0,00274
Current Square foal charge per month =
0.0031
-11.49% Pereenl increase
t.. 4�,(YF 3$ tR.Il' ,�df'f J�lj''F V"i },+„` t .; ! RW ti':.6 "- F ..
"$IY�
�)�LL I,i ('ql
WkK � ��JJ �i raszi'
d
��mparison o urren
�
�e to
Proposed Rate
Meter Rate
Current Rate Proposed Rate
Percent Change
Meter Size
518"meters
$6.610 $6.485
-1.89%
3/4"meters
$9.910 $9.727
-1.89%
1" meters
S16.520 - $16.212
-1.89%
1.5"meters
$33,050 $32.425
-1,89%
2" meters
$52.880 $51.879
-1.89%
3" meters
$99.150 $97.274
-1.89%
4"meters
$165.250 $162.123
-1.89%
6" meters
$330,500 $324.247
-1.89%
8"meters
$528.800 $518.795
-1.89%
Consumption Charge
$1.280 $1.496
16.84%
Square Footage Charge
0.0031 0.00274
-11,49%
Under Under
Current Rate Proposed Rate
Total Estimated Revenues Collected $6,365,701.98 $6,863,782.00
7.82%
10
12/6/2011
Rate Comparison
The majority of water agencies do not have a square
footage charge. For comparison purposes the square
footage charge can be converted into a commodity rate
by dividing the cost assigned to the square footage
charge ($1,312652.00) by the total amount of water
estimated to be sold. This calculation yield a cost of
$O.4146/HCF. When added to the proposed
commodity charge of $1.496 it would equate to an
equivalent rate of $i.9i/HCF.
Rate Comparison
Agency Name
Cost Per HCF
City of Industry - La Puente Valley
County Water District
$1.62
City of Vernon (Proposed with SF)
$1.91
Maywood Mutual No. 3
$2.10
City of Industry — Rowland Water
District
$2.26
City of Long Beach Tier 11 Rate
$2.43
City of Pasadena Block 2 Rate
$2.64
City of Carson — Golden State Water
Company
$2.96
California Water Service -Commerce
$2.99
City of Glendale
$3.04
City of Santa FeSprings
$3.50
11
12/6/2011
Recycle Water Rates
Recycle Water CBMWD Costs
Malburg
Malburg
Volume in
CBMWD
CBMWD
Percent
Generating
Generating
Percent
Acre Feet
Service
Service
Increase
Station
Station
Increase
Area Rate
Area Rate
Rate Prior
Rate
Prior to
Effective
to
Effective
July 1,
July 1,
July 1,
July 1,
2011
2011
2011
2011
0.26
606
536
6.0
367
368
3.0
26.50
606
536
6.0
332
342
3.0
50-100
460
488
6.0
308
317
3.0
100+
460
488
6.0
283
291
3.0
12
12/6/2011
recycle Water Rage -Cacu a ion
Malburg Generating Station
Month
Qa,.nlpllaa
Cost
tradh
Ponrel
Acre -Feet
11-May
16.58$ 5,919.w
$
3,316.00
$
721w
11.A,
z147 $ 8,032.00
$
4,494.00
$
861.00
11-Mar
66.01$ 21156.00
$
13,202.00
$
633.01)
ll-reb
66.97$ 2t,451.w
$
131394,00
$
816.p0
IYlsn
A5.19$ 15,628.0Q
$
9,038.00
$
Meet
II.D.
62.8 $ 21,167.00
$
22,560.00
$
591a0
11-Nov
Ones $ 26,619.00
$
16,100.00
$
757A0
11-Dn
76.06$ 75,252.W
$
15,212.00
$
saw
11-Sep
91" $ 30,370.00
$
18,536.00
$
I,387.01)
11.Au6
62.78$ 2;547.00
$
131456An
$
1,674.00
II -Jul
51.89$ 17,807.00
$
10,378.00
$
4593.00
U.N.
5.91$ 2 7400
$
108200
$
95Bw
Total
am.oa $ 220,ou.00
$
130.768.00
$
24544.00
Total all atwat.r= Co. +Paw¢,. r ft z
$
100,788.0o)
ntywPplles services and overhead 1 %
3
I511azo
Total Cost M supylyregole--terto M652010.t011
$
115190fi.20
Water[ortto Intrease by rA M 201Y2011
TctaloaNtOsuPPM,ety[lad terto MGSMI3 012 $ I21860.57
ReCyde Water Rate 2012= wst/con9umpti0n $ 0.434
cycle Water Ra e.,� aF cu a iion
All other Customers
Assumes that that City will sell 50 acre feet a month of recycle water
Central Basin Water rate for 50 acre feet per month = (SOAfx $536) = $26,150/mon.
Total water Sales for the year $ 313,800.00
City supplies services and overhead 15% $47,070.00
Total cost
$360,870.00
Recycle water rate for all other coustomers= cost /consumption $ 1.381
13
12/6/2011
F,-�ie-��-yy-c`le
Water R-aTee Comparison
Current to Proposed
Current Rate
Proposed Rate
Percent
Difference
Recycled-
CBMWDService
$1.433
$1.381
3.63 Decrease
Area
Recycled-
Malburg
$0.488
$0.434
11.1 Decrease
Generating
Station
Questions and Discussion
14
City of Vernon
NOTICE OF PUBLIC HEARING
4305 Santa Fe Avenue
Vernon, CA 90058
(323)583-8811
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 &
Time: Tuesday, December 20, 2011 at 9:00 a.m.
The City Council of the City of Vernon will be conducting a Public Hearing regarding Vernon's proposed
water rate adjustment. The purpose of the hearing is to obtain testimony from affected and/or interested persons
regarding this subject. The public is also invited to submit written protests regarding the proposed adjustments.
This notice is intended to provide you with information on the water services provided by the City of Vernon,
the reasons for the increase in monthly service rates, and the methods by which you can protest this rate
increase. The new rate schedule is proposed to take effect on January 1, 2012.
The City of Vernon continues its quest to offer among the lowest water rates in the Los Angeles
region. However, the City is facing rising operating costs due to increased water supply costs and needed
capital improvements to its water facilities. The proposed rate increase is needed to keep pace with these
increases in costs while maintaining a safe and efficient water distribution system.
Proposed Changes to Potable Water Charge and Recycled Water Charge
The City is proposing to increase the potable water rate per hundred cubic feet (HCF) by 16.8 percent.
For a water customer with a 6" meter using 4500/HCF at the current rate your monthly water charge would be
$6,090.50 and will increase to $7,056.24 under the proposed water rate increase. For a water customer with a
2" meter using 50/HCF at the current rate your monthly charge would be $116.88 and will increase to $126.68
under the proposed water rate increase.
The City is proposing to decrease its monthly square -footage charge assessed on the square -footage of
your building or outside storage by 11.6 percent. For a customer who occupies a building with approximately
200,000 square -feet at the current rate your monthly square -footage charge would be $620.00 and would
decrease to $548.00 under the proposed rate. For a customer who occupies a building with approximately
50,000 square -feet at the current rate your monthly charge would be $155.00 and would decrease to $137.00
under the proposed rate. The proposed meter charge will decrease by 1.9 percent. There are no other
adjustments in costs to the potable water rate structure.
The City'is proposing to decrease the recycled water rate per hundred cubic feet (HCF) by 11.1 percent
for the Malburg Generating Station (MGS) and 3.6 percent for all other customers. There are currently no
recycled water customers other than MGS.
19ji
Current Minimum Rates for Meters for Fire
Related Services for 4", 6", 8" and 10" Meter
Current Minimum Rates for Unmetemd
Services for Fire Protection Purposes:
Current Standby Meter Charge/Minimum
Change
Proposed Minimum Rates for Meters for Fire
Related Services for 4", 6", 8" and 10" Meter
Proposed Minimum Rates for Unmetered
Services for Fire Protection Purposes:
Proposed Standby Meter Charge/Minimum I Percent
for
Current Recycled Water Rates Per HCF
-
Pro Proposed Rtt cled Water Rates Per HCF
Percent
Decrease
Malburg
Generatng Station
$0.488 -
$0.434
All Other
11.1
Customers
$1.433
$1.381
3.6
Information About Potable Water Charges
A. Basis upon which the charges were calculated — The monthlypotable water charge is the sum of
three components: a commodity charge, a meter charge, and square footage charge. The commodity charge is
based on providing revenue to cover all of the non -labor costs of water service and half of the labor costs of
water service. The meter charge is based on providing revenue to cover the other half of the labor costs of
providing water service. The square footage charge is based on providing revenue to cover all of the fixed
costs for providing ample water and pressure to the fire hydrants and automatic fire protection systems that
serve customers' properties.
B. Reason for charges —The proposed increase in the commodity charge will be used to cover the
increased costs of providing water service, including the increased Replenishment Assessment imposed by the
Water Replenishment District for accessing groundwater supplies and the cost of acquiring water from the
Central Basin Municipal Water District for surface water supplies, and to cover the. increased fixed costs per
hundred cubic feet of water consumed due to a reduction in water consumption by the City's water customers.
C. Charge per parcel — The table below provides the proposed potable water charge increase and
proposed square -footage decrease. If you need assistance determining the amount of your potable water
charge, you may contact Scott B. Rigg by calling 323-583-8811 or by mail or in person at 4305 Santa Fe
Avenue, Vemon, CA 90058.
Current Commodity Cha e C
Pro osod Commodity Charge IC
Change Percent
$1.280
$1.496
16.8% Increase
Current Monthly S uare-Foote eChar a
$0.0031
Pro osed Monthly S uaro-Foota eChar a
Change Fe .ent+/-
11.6% Decrease
$OA0274
Current Monthly Meter Charge
Proposed Monthly Meter Charge
Change Percent +I-
-Varies with Meter Size
Varies with Meter Size
1.9% Decrease
Information About Recycled Water Charges
A. Basis upon which the charges were calculated — The recycled water charge is the sum of six
components: water, power, supply, administrative costs, and capital credits.
B. Reason for charges — The proposed increase in the recycled charge Will be used to cover the
change in costs associated with recycled water service, power, supplies, depreciation, and administrative costs.
C. Charge per parcel — The table below provides the proposed recycled water charge increase. If
you need assistance determining the amount of your recycled water charge, you may contact Scott B. Rigg by
calling 323-583-8811 or by mail or in person at 4305 Santa Fe. Avenue, Vernon, CA 90058.
Current Reeled Water Rates Per HCF
WaterPer HCF
Percent
Decrease
Malburg
Generating Station
$0.488
$0.434
1
All Other
Customers
$1 A33
$1.381
3.6
Public Hearing
At the public hearing, the City will hear and consider all objections or protests to the proposed charges.
Written protests regarding the proposed potable water charge increase must be filed with the City Clerk prior
to the conclusion of the public hearing. Written protests may be delivered to the City Clerk at the public
hearing or mailed or delivered to the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue, City of Vernon,
California 90058. Protests which are mailed or delivered to Vernon City Hall must arrive at Vernon City Hall
by 9:00 a.m. on December 20, 2011 to be counted. If at the conclusion of the public hearing, written protests
against the proposed potable water charge adjustments have been filed (and not withdrawn) by the owners of a
majority of the parcels subject to the respective proposed increase; the City Council will not adopt the
respective increase.
Questions
For more information about the proposed water charges you may contact Scott B. Rigg at 323-583-
8811. The documentation supporting the proposed water charges is available in the office of Community
Services, Vernon City Hall, 4305 Santa Fe Avenue, between the hours of 7:15 a.m. and 5:15 p.m. Monday
through Thursday.
Dated; 10-25-11
•T
'' �ttstPrrr �rnix� �ublic�x#inxrs, �x7r_
The OnlyAll Hispanic Owned Chain of Bilingual Newspapers
111 S. Avenue 59, Los Angeles, CA 90042-4211
Ph 323.341-7970 • Fax 323.341-7976 • www.egpnews.com
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES
I am a citizen of the United States and a resident
of the County aforementioned; I am over the age
of eighteen years, and not a party to or interested
in the above -entitled matter. I am the principal
clerk of the printer of
EASTERN CROUP PUBLICATIONS'
EASTSIDE SUN, MEXICAN AMERICAN SUN,
NORTHEAST SUN, BELL GARDENS SUN
VERNON SUN, COMMERCE COMET
.CITY TERRACE COMET, MONTEBELLO COMET
MONTEREY PARK COMET,
E.L.A.BROOKLYN BELVEDERE COMET
AND WYVERNWOOD CHRONICLE
newspapers of general circulation, printed
and published THURSDAYS in the County of
Los Angeles, and which newspaper has been
adjudicated a newspaper of general circulation by
the Superior Court of the County of Los Angeles,
State of California, under the
date of JUNE 21, 1966,
CASE NUMBER 884 1;
that the notice, of which the annexed is a printed
copy (set in type not smaller than nonpareil), has
been published in each regular and entire issue
of said newspaper and not in any supplement
thereof on the following dates, to -wit:
NOVEMBER 03,
all in the year 2011.
1 certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at LOS ANGELES, California,
this 03Edday of NOVEMBER, 2011.
slgnalure
This spac, s for the County Clerk's Filing Stamp
CITY OF VERNON
Proof of Publication of
Notice of Public Hearing' Tuesday
December 20, 2011 . regard I g Vernon's
Proposed Water Rate Adjustmot
131iy is Ve�1fp
iVOfl(i qF A}E�ARtNO
• the C)ly of Vernon.w111 abndadl @:PrJ4 'I�'Ff jlitg,i�rl,)lh yo4 ¢reµ'$)tend,;
'
PI92d :;lrel'4tln �ihy Hdlf4'},�'11fyl064�jrtiy {Im bars y
..4394 Santa,� gs14e V@�n_GA9 '
a
Dale Time: 7u@alday 1)el,artl
doe
.The 6ty wunell .of fe T»ty of V@rrron �yIll be'contlgc(mg a Public
FIeH'117+glop. mg.VenfPRaprP ifi
PFedwetet 44JetlE''TJ10jjuryaep,
of the (re�,npgl�;(wo6ta01. f=aQhlpny ftomrBpC
Pntlror idt@r`@ata6
persona regeC¢P9..upject Tho.'Publ al4 $p 164fletllosubt0ifW'I Ith .
phlests Jegording. proposed e8lu 'fhlsrtANce is Inl$ndad to''
jjmylde you "fi mfornm on Vi thq n�CiltEpp.prAwdetl by
o1,Vyglon pa reeegne Fof the Jn2resa@ Ao inoMhly
S,ahnce retas, end .
Ihe.'mgthoda byWhidx Ydu Ifab,pCdTea['tSlamlq.lrigr3esar The.natY
schedu a (s ed� to [eke aBeEtbn JOPuely 1201
' Th� F,ry o Vern6n banllriugal(i f{deat Ib' Among,
gbgr 169 IdWet .
Wplad re{ee to Iha.4oe AnDelas re�Jpn MaWes@rrgiY CIty Is Yyai ", Sob ".
scats -flue to Inowaseq Water pdpply Ae to Any needed espital
,R¢!atln9
IMp.m em@otspitg'.Welerfilol144a;7he pfovostSdip1@Hncr@ase ls:geaQ
Id'Ke 00 11h Ihese IdQrsases'In cds18 whlle'mainkinin9 a Is;
a '
r] WAtan dta{dbabon sYateSn :; '.
,RRpp00AND Di9AH ES -TQ-FOTASLE VyAiER CHAF{DE.
REC1rS1 DWATER CFIXko -
Th@ Crly ,s proposing to Inummae lha atablewater to per hundred
Subl6Yaet (HCF) ky' 16 8 persenh. For a a'2ter'dust6mOr with a 6-:meter
usldg 460 HCF. at me current, tale your,mongjly water charge. -would-:
be'$Bdg050 and,Wll( Increase to,$7056 24 undef the propgSad,watgr.
rele:lp asb For a',Wawr cusmmbr wllh e 2 meterveing 69IHCF et tFB,
euReecte your rltonthly cbatge Wodld B0 8:e9 en@ wlll 1poFease to -:
$f29 HB edtler'(ha.pmPoaed' srare4tel Indree9e�,,.
Cly I@ to da64(bieSdume
.Thb prdp6ging is monthly f ja'& c.6afge"
aegesbed gn'11m pgbara,fo'o)8 a Af your bullttIAD-arptyida storgDel}Y.
11'B;ppW�RIlt Fore duslomer o40cu�Dt2P§yulldin9 dlately
Itfi appro
2q,¢y00. a u@re4ee) al 18e ddrreilt Ya(P ypar',jno i yssgµeeb+Yfydt@ga :!
bhaiga�q fd 6g 4820,QD and would d greeds Xa SSde 00 ttra.._
u68ar
progopra'fiu@lpl�BrwhpriGdilpJ�§(9'N2g1°apppr¢x§pl6lely ,
,4R0011 eM.. �i,eyy 8r eurren� le r 1 IY GhdrA4 w d'.be -,
$'(S add wopfIt,. to
1 crease @:137 o ynder 1He protiosed ra1e.::TVie -
prtfpog'etl meter thgrgw will dearea$d b t a-parcerjl. There era nd dt6eF
edJD.sJ(name In eosl@ W(p Irya PotebleWe��� aJp Irddllue
The Clt>'( Ioroflbaing todecreasglhe
ad Walefratep@r hundred
c9S!(c feet (HCFj, 11 1 geren�ldlgr tha�4lblag^. Generating-Stpilgq
(OfCiS) sod 8 �perganl fdr all othbt 6 Yq arp Therd are n d
r w ... :.. ..a.6..h-rfy °n •.
dAgCharge.y.:M3ali.Wy R9R a '.
Chargeero@nt! -
1 . 4 1,8.520. - $ i8.ziz..::.. ..: 1,9...
2.0 3
�97M. ::::.:,•:.<;l '; �.1 .. r:' �. ;t
�
G)rRe46 IA! N pa4adCn 1�d Q40 tl t
Cher¢p1'(1ICk) t` PardeRM"M
yymr �
Q f
gpp dq lhga C,(tiigi IBM
-;�. I as. S4Do
LFd-rr@"S lelrpli yiSfar ar
$iht@ra for Flre) 9d Sarvlcae , e.r4": S(I@lad PNf X
4
f"S 'Molar
or agS;?Ib Sl iF®, add lOKjdotar 8l
a b
6z ogS e: A
DHR4IypTf.{a4as for Pro oar jhbum 'tas..
Untfacti rvfe@,(. oS FICA 4nmetere gqrvfdeafor Pire
Prolaotlon Purao,@a8: M6rdhly:Protoglie..Pairposea: Monihry