Resolution No. 2012-241RESOLUTION NO. 2012-241
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON INITIATING PROCEEDINGS WITH RESPECT TO A
REVISED SCHEDULE OF WATERRATES
WHEREAS, Pursuant to Article 1 of Chapter 25 of the
Municipal Code, the City charges rates to its water customers to fund
the City's water enterprise; and
WHEREAS, the City's existing water rates are insufficient to
fully fund anticipated enterprise costs; and
WHEREAS, the City Council desires to initiate proceedings
pursuant to Article XIII D, Section 6 of the California Constitution
with respect to a revised schedule of water rates.
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 above recitals are true and correct.
SECTION 2: The City Council proposes the Schedule of Water
Rates set forth in Attachment "A" to this Resolution. As authorized
by Government Code Section 53756, the Council proposes that the
Schedule of Water Rates be subject to automatic pass through and
.inflation adjustments as set forth in Attachment "B" to this
Resolution As used in this Resolution, "Proposed Rates" refers to
the Schedule of Water Rates and the automatic pass through and
inflation adjustments.
SECTION 3: On February 19, 2013, at 9:00 a.m., in the City
Council Chambers located at 4305 Santa Fe Avenue, Vernon, CA 90058,
the City Council will hold a public hearing on the Proposed Rates.
At the public hearing, the City Council will consider all protests
against the Proposed Rates. The acceptance and tabulation of formal
written protests will be governed by the policy attached hereto as
Attachment "C". If, as calculated pursuant to this policy, there is a
majority protest with respect to the Proposed Rates, the Proposed
Rates will not be adopted and existing water rates will remain in
effect.
SECTION 4: The Interim City Clerk is directed to mail a
notice of the public hearing to all water customers in the manner set
forth in Government Code Section 53755(a)(1).
SECTION 5: The Interim City Clerk of the City of Vernon
shall certify to the passage, approval and adoption of this
resolution, and the Interim City Clerk of the City of Vernon shall
cause this resolution and the Interim City Clerk's certification to be
entered in the File of Resolutions of the Council.of this City.
APPROVED AND ADOPTED this 18th day of December, 2012.
C „
Name: Wil iam J. Davis
Title: Mayor / Mzry-o-r—P-ro=Tei�3
ATTEtSTI: I,1 I A l
Dana Deed, Interim City Clerk
_2_
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Dana Reed, Interim City Clerk of the City of Vernon, do hereby
Certify that the foregoing Resolution, being Resolution No. 2012-241,
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, December 18, 2012, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this day of Decembe 012, at Vernon, California.
J /
a Reed, Interim City Clerk
(SEAL)
r
3-
Attachment A
Schedule of Water Rates
Basic Rates
A. Monthly meter rates (VMC Sec. 25.2)
Meter Size Rate
5/8" $7.30
314 $10.95
l" $18.26
1.5 $36.52
2.0" $58.43
3.0" $109.55
4.0" $182.59
6.0" $365.18
8,0" $584.28
B. Monthly user's rates (VMC Sec. 25.3)
$1.723 per hundred cubic feet
C. Monthly square foot rates (VMC Sec. 25.5)
$0.00351 per square foot
Special Rates
D. Add'l Monthly Rate for Fire Sprinkler Connection (VMC Sec. 25.4)
$2.00 per month, if metered
$0.25 per sprinkler -head, if unmetered
E. Minimum Charges for Temporary Service (VMC Sec. 25.6)
$200 per initial installation
$50 per relocation
F. Deposit for Temporary Service (VMC Sec. 25.7)
$1,000
G. Standby Service-- Minimum Monthly Consumption (VMC Sec. 25.2)
2" Meter: 60 hcf/month
3" Meter 150 hcf/month
4" Meter: 300 hcf/month
6" Meter: 750 hcf/month
-4-
8" Meter: 1,500 hcf/month
If consumption is at or below minimum, customer pays volumetric
charge (Basic Rate B) based on minimum consumption, rather than
actual consumption. Additionally customer must pay meter charge
(Basic Rate A) based on meter size
H. Recycled Water Rates (VMC Sec. 25.3)
Malburg Generating Station: $0.434 per hcf
All Others: $1.381 per hcf
_5_
Attachment B
Automatic Adjustments
Pass Through Adjustment
The $1.723/ hcf volumetric charge includes the following water supply
charges:
Provider Charge Portion of $1.723
Water Replenishment District Replenishment 53.9 cents
Of Southern California Assessment
Central Basin MWD Water Charges 31.4 cents
Through January 1, 2018, if either of these providers change their
rates as applicable to the City, the respective portion of the
volumetric charge will automatically adjust by the percentage change
in the entity's applicable rate, causing an adjustment to the $1.723
rate.
Inflation Adjustment
Each January 1, beginning January 1, 2014 and ending January 1, 2018,
the remaining 83.5 cents of the volumetric charge, as well as each of
the other "Basic Rates", will be adjusted for inflation by multiplying
the rate set forth in the council -adopted resolution by the percentage
change since December 2012 in the Consumer Price Index for All Urban
'Consumers for Los Angeles.
- 6 -
Attachment C
Policy Governing for the Acceptance and Tabulation of Protests
Submission of Protests
1. Any property owner or water customer may submit a written protest to the City Clerk, either by mail
or delivery to the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California, 90058
by 9:00 AM on the date of the public hearing or by submitting the protest at. the public hearing.
Protests must be received by the end of the public hearing. No postmarks will be accepted.
2. Each protest must be in writing and must state that it is a protest (or indicate opposition to the
proposed rates) and include the following information: (i) the name of the owner or customer
submitting the record, (ii) the street address or assessors parcel number of the parcel (or service
location) for which the protest is submitted, and (iii) the signature of the person submitting the
protest.
3. Email or facsimile protests cannot be accepted. Although the City Council welcomes input from the
community during the public hearing on the proposed fees, oral comments at the public hearing will
not qualify as a formal protest unless accompanied by a written protest.
4. If a parcel receiving water service is owned by more than one record owner; if more than one name
appears on the City's records as the customer for the parcel; or if the customer is not the record
owner, any owner or customer may submit a protest, but only one protest will be counted per parcel
and any one protest submitted in accordance with these rules will be sufficient to count as a protest
for that parcel.
5. A protest by a property owner that is a trust must be signed by the Trustee and identified as such
with the signature (i.e., John Smith, Trustee for Smith Family Trust). Protests by property owners
that are corporations, partnerships, or similar entities must be signed by a person authorized to
execute documents on behalf of the property owner. A property owner that is not shown on the last
equalized assessment roll for a parcel must accompany the protest with evidence of ownership.
6. Any person who submits a protest may withdraw it by submitting to the City Clerk a dated written
request that the protest be withdrawn. The withdrawal of a protest must contain sufficient
information to identify the affected parcel and the name of the record owner or record customer who
submitted both the protest and the request that it be withdrawn.
7. A fee protest proceeding is not an election.
8. To ensure transparency and accountability in the fee protest tabulation, protests shall constitute
disclosable public records from and after the time when they are received and opened by the City.
Protests will be retained by the City for three years and then may be destroyed.
Tabulation of Protests
The City Clerk, or designee, shall determine the validity of all protests. The City Clerk shall not
accept as valid any protest if s/he determines that any of the following conditions exist:
a. The protest does not identify a parcel that will be subject to the proposed fees.
b. The protest does not bear an original signature of a record owner or customer associated
with the parcel.
c. The protest does not state its opposition to the proposed fees or is illegible.
d. The protest has been altered in any way by someone other than the person who signed it.
- 7 -
e. The protest was not received by the City Clerk before the close of the public hearing on the
proposed fees.
f. A request to withdraw the protest was received by the City Clerk prior to the close of the
public hearing on the proposed fees.
g. The protest or request for withdrawal is dated prior to the date of mailing of the notices of
hearing on the proposed fees.
2. The City Clerk's decision that a protest is not valid shall constitute a final action of the City and shall
not be subject to any internal appeal.
3. A majority protest exists if written protests are timely submitted and not withdrawn by owners or
customers with respect to a majority (50.0% plus one) of the parcels subject to the proposed fee.
4. A majority protest also exists is written protests are timely submitted and not withdrawn by
customers with respect to a majority (50.0% plus one) of the service locations (customer accounts)
subject to the proposed fee.
5. At the conclusion of the public hearing, the City Clerk shall count all protests received, including
those received during the public hearing, and shall report the results to the City Council upon
completion. If review of the protests received demonstrates that the number received is manifestly
less than one-half of the parcels served. by the City with respect to the fee which is the subject of the
protest, then the City Clerk may advise the Council of the absence of a majority protest without
determining the validity of all protests.
6. If, at the conclusion of the public hearing, the Clerk determines that s/he will require additional time
to count the protests, s/he shall so advise the Council, which may adjourn the meeting to allow the
count to be completed on another day or days. If so, the Council shall declare the time and place of
the count, which shall be conducted in a place where interested members of the public may observe
the counting, and the Council shall declare the time at which its meeting shall be resumed to receive
and. act on the report of the Clerk.
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: December 19, 2012
TO: Kevin Wilson, Director of Community Services & Wa er
FROM: Deborah Juarez, Records Management Assistant
RE: Resolution No. 2012-241— A Resolution of the City Council of the City of Vernon Initiating
Proceedings with Respect to a Revised Schedule of Water Rates
Transmitted herewith is a copy of Resolution No. 2012-241 referenced above, which was approved by City
Council on December 18, 2012.
Thank you.
Attachment
c: Dana Reed
Scott Rigg
Resolution No. 2012-241
CITY CLERK'S OFFMNIMUNITY SERVICES& WATER DEPARTMENTV
DATE: December 11, 2012
TO: Honorable City Council
FROM: Samuel Kevin Wilson; Director of Community Services & Water
RE: Water Rate Adjustment
Recommendation
It is recommended that the City Council adopt a resolution which proposes to increase water
rates, sets a public hearing date, and adopts procedures in accordance with Proposition 218 for accepting
and tabulating protests. If the City Council adopts this resolution, staff will mail the public hearing notice
to all water ratepayers and property owners.
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.
Background
The City last adjusted its water rates on February 1, 2012 to cover increased expenses associated
with rising replenishment and surface water costs. Since then, the City has performed a detailed
evaluation of its water distribution and production facilities and found that capital improvement projects
are needed in order to ensure the water system is functioning at optimum efficiency. These projects
include the construction of a pump station at Well No. 21, repair to the Elevated Tank standpipe, and
rehabilitation of Well No. 16. In addition, electrical rates to operate the City's production and booster
plant facilities have increased significantly over the past year. Metropolitan Water District (MWD)
surface water costs also continue to increase.The cost MWD-charges for an acre-foot of water has
increased by nearly 52.3-percent in a three and a half year period. Table No. l illustrates the cost
increases:
Table No.I
Date of b!n ,rcpse-Surface Water
Cost Per Acre -Foot
Prior ti6 July l; 2009
$635.00
July 1,2009
$653.00
September 1, 2009
$781.00
January 1,2010
$791.00
July 1, 2010
$805.00
January 1, 2011
$855.00
July 1, 2011
$859.00
January 1, 2012
$915.00
January 1, 2013
$967.00
Total Increase: 52.3 Percent
It is estimated that the City will use approximately 8,032 acre-feet of water for the 2012-2013
fiscal year. Of this, approximately 7,032 acre-feet will be extracted utilizing the City's adjudicated water
rights. The remaining 1000 acre feet will be purchased from CBMWD. Moreover, water sales have begun
to stabilize over the past year with a leveling off of economic activity in the City. Still, 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 35.85 percent reduction in water use over a four year period. This
reduction in water sales has resulted in an increase in water rates to cover fixed costs.
The City's water rates are split into three components, a meter charge, commodity charge, and
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 projected 2013 costs, the water rates should be adjusted. The projected costs include a
projected need of $1,200,000 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. 2 and 3. The
majority of the water rate increase is driven by the increase in water ;costs, and the need for capital
improvements to the water distribution system. The increase in the square foot rate is a result of the City's
proposed capital improvements to; the water distribution system. Appendix "1" attached hereto provides
the budget breakdown and Appendix "T' attached hereto contains the rate calculations.
Table No. 2
Current Rate
Proposed Rate
Percent Difference
Commodity Rate
$1.496
$1.723
15.17-Percent Increase
SquareFootageRate
$0.00274
$0.00351
28.10-Percent Increase
2
Table No. 3 - Meter Cbarge
Meter Size
Current Rate
Proposed Rate
Percent Difference +
5/8"
$6.48
$7.30
12.62
3/4"
$9.73
$10.95
12.62
P,
$16.21
$18.26 '
12.62
1.5"
$32.42
$36.52
12.62
2.0"
$51.88
$58.43
12.62
3.0"
$97.27
$109.55
12.62
4.0"
$16212
$182.59
12.62
6.0"
$324.25
$365.18
12.62
8.0"
$518.79
$584.28
12.62
Rate Comparison
The City of Vernon performed a cost comparison study to ascertain how the City's current and
proposed potable rate structure compares with that of neighboring cities. A 50,000 square foot
manufacturing operation using a 4-inch meter, with a monthly consumption of 5,500 Hundred Cubic Feet
(HCF), (Business "A"); and a 50,000 square foot warehouse using a 2-inch meter, with a monthly
consumption of 200 HCF (Business `B" ), were used in the study. The results of the study, illustrated in
Table No. 4, demonstrate that Vernon's proposed rate structure remains low when compared to
neighboring cities:
3
Table No. 4
Monthly
Monthly
Monthly
Meter
Monthly
Square
Fire
Agency/Company
Service
Cost
Water
Foot
Service
Average
50,000 Square
Charge
Per
Consumption
Charge
Charge
Monthly
Average
Feet
Business
4"
HCF
in HCF/Units
8 Inch
Cost
Annual Cost
City of Vernon
(Current)
Business "A"
$162.12
$1.496
5,500
0.00274
$2.00
$8,529.12
$102,349.44
City of Vernon
(Proposed)
Business "A"
$182.59
$1.723
5,500
0.00351
$2.00
$9,836.59
$118,039.08
City of Industry -La
Puente
Business "A"
$114.26
$1.950
5,500
0
$92.75
$10,932.01
$131,184.12
City of Industry -
Rowland
Business "A"
$159.19
$2.385
1 5,500
0
$76.45
$13,353.14
$160,237.68
Carson -Cal Water
Service
Business "A"
$197.44
$2.965
5,500
0
$82.96
$16,587.90
$199,054.80
Carson -Golden
State
Business "A"
$542.05
$3.004 .
5,500
0
$40.00
$17,104.05
$205,248.60
City of Santa Fe
Springs -Golden
State
Business `A"
$542.05
$3.004
5,500
0
$40.00
$17,104.05
$205,248.60
City of Commerce -
Cal Water Service
Business "A"
$277.83
$3.146
5,500
0
$57.67
$17,639.50
$211,662.00
City of Santa Fe
Springs
Business "A"
$199.00
$3.820
5,500
0
$125.00
$21,334.00
$256,008.00
Monthly
Monthly
Meter
Monthly
Monthly
Fire
Agency/Company
Service
Cost
Water
Square -'
Service
Average
50,000 Square
Charge
Per
Consumption
Foot
Charge
Monthly
Average
Feet
Business
2"
HCF
in HCF/Units
Charge
8 Inch
Cost
Annual Cost
City of Vernon
(Current) ,
Business "B"
$51.88
$1.496
200
0.00274
$2.00
$490.08
$5,880.96
City of Industry -La
Puente
Business `B"
$48.57
$1.950
200
0
$92.75
$531.32
$6,375.84
City of Vernon
(Proposed)
Business "B"
$58.43
$1:723
200
0.00351
$2.00
$580.53
$6,966.36
City of Industry -
Rowland
Business "B"
$51.01
$2.385
200
0
$76.45
$604.46
$7,253.52
Carson -Cal Water
Service
Business "B"
$63.18
$2.965
200
0
$82.96
$739.14
$8,869.68
City of Santa Fe
Springs
Business "B"
$75.00 -
$2.860
200
0
$125.00
$772.00
$9,264.00
City of Commerce -
Cal Water Service
Business "B"
$100.75
$3.146
200
0
$57.67
$787.62
$9,451.44
Carson -Golden
State
Business "B"
$173.45
$3.004
200
0
$40.00
$814.25
$9,771.00
City of Santa Fe
Springs -Golden
State
Business "B
$173.45
$3.004
200
0
$40.00
$814.25
$9,771.00
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 $0.530/HCF. Adding that to the proposed commodity
4
rate of $1.723 equates to a net equivalent rate of $2.253/HCF. Table No. 5 illustrates a comparison of this
equivalent rate with water purveyors in close proximity to the City of Vernon:
Table No. 5
Agency Name
Cost Per HCF
City of Industry - La Puente Valley County Water
District
$1.950
City of Vernon (Proposed with SF)
$2.253
Maywood Mutual No. 3
$2.350
City of Industry -'Rowland Water District
$2.385
City of Long Beach Tier II Rate
$2.439
City of Pasadena Block 2 Rate
$2.71$
City of Glendale
$2.750
City of Carson — Golden State Water Company
$3.004
City of Commerce - California Water Service
$3.146
City of Santa Fe Springs
$3.820
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.
The City has entered into an agreement with CBM. WD 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 is responsible for all electrical costs for the
booster plants serving the Vernon area. As part of the Malburg Generating Station Project, the City agreed
to pay for, the construction of the recycled water pipeline extension and booster station. 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. There were no
adjustments,to CBMWD's recycled water rates for fiscal year2012-2013; therefore, the City's recycled
water rate structure was not adjusted. The recycled water rates are reflected Appendix "3.
Table No. 7
Current Rate
Proposed Rate
Percent Difference
Recycled-CBMWD
Service Area
$1.381
$1.381
0-Percent
Recycled-Malburg
Generating Station
$0.434
$0.434
O-Percent
Proposition 218 Process
California Proposition 218 requires a majority protest hearing before increasing its property
related fees, such as fees for basic water, sewer and trash service. Water rate increases do not require an
affirmative vote of the ratepayers for approval. However, the Council cannot approve a rate increase if a
majority of affected parcels submit written protests against the increase. The steps the City must take
under Proposition 218 to increase its water rates are:
5
1. Mail notice to ratepayers informing them of the proposed increase and the date, time, and location of
the public hearing:
2. Accept written protests during the period between the mailing of notice and the close of the public
hearing. This period must be 45 days long.
3. Hold a public hearing. If protests have been received with respect to 50-percent or less of affected
parcels, the City Council can then adopt the new rates. If the received protests exceed 50-percent of the
ratepayers, the local government cannot vote to pass the new rates. Only one written protest per identified
parcel or property will be counted for purposes of determining whether there is a majority protest.
Staff's proposed form of hearing notice is attached as Appendix "4."
Automatic Pass Through and Inflation Adjustments
The proposed commodity rate (volumetric charge) of $1.723 includes the following water supply
charges:
Provider Pu ose Portion of $1.723
Water Replenishment District Replenishment Assessments to 53.9 cents
Of Southern California Supply Water to City Wells
Central Basin MWD Purchased Water Charges 31.4 cents
Through January 1, 2018, if either of these providers change their rates applicable to the City, the
respective portion of the volumetric charge will automatically adjust by the percentage change in the
entity's applicable rate, causing an adjustment to the $1.723 rate. Additionally, each January 1, beginning
January 1, 2014 and ending January 1, 2018, the remaining 83.5 cents of the volumetric charge, as well as
the meter and square footage charges, will be adjusted for inflation by multiplying the rates shown in this
report by the percentage change since December2012 in the Consumer Price Index for All Urban
Consumers for Los Angeles.
' SKW/sr
Enclosures
6
of VER RECEIVED
DEC 11 2012
CITY ADMINISTRATION
GsVfLY tNOJ
5
COMMUNITY SERVICES & WATER DEPARTMENT
OFFICE MEMORANDUM
TO: Mark Whitworth, City Administrator
FROM: Samuel Kevin Wilson, Director of Community Se ater
DATE: December 11, 2012
SUBJECT: Water Rate Adjustment
It is recommended that the City Council adopt a resolution which establishes the City's intent to
increase water rates, sets a public hearing date, and adopts procedures in accordance with Proposition 218 for
accepting and tabulating protests. If the City Council adopts this resolution, staff will mail the public hearing
nnticP to all rntannAn rc and nrn-nPrty numars
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APPENDIX 112"
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" 19
1
19
3/411 29
1.5_
43.5
1 222
2.5
555
1.5" 157
5
785
2.0" 496
8
3968
3.0" 38
15
570
4.0" 57
25
1425
6.0" 23
50
1150
8.0" 1
80
80
Total 1042
8595.5
X ='Commodity Related Labor Expense =
$1,508,657.95
S = Standby Revenues =
$1,000.00
R = Hydrant Meter Revenues =
$1,000.00
B = Adjusted Commodity Related Labor Expense
X-(S+R) = B =
$1,506,657.95
-Y = 50% of the Adjusted Commodity Related Labor Expense
$753,328.98
Monthly Meter Charge Factor ,= Z
Z - Y/(8595.5)(12)
7.30352098
(X) x (Z) = proposed meter charge
APPENDIX 112"
Proposed Meter Charge
Meter Size and (Z) Factor
Proposed Monthly
Present Monthly
X Factor
Meter Charge
Meter Charge
5/8" 1 x 7.30352098
$7.304
$6.485
3/4" 1.5 x 7.30352098
$10.955
$9.727
1" 2.5 x 7.30352098
' $18.259
$16.212
1.5" 5 x 7.30352098
$36.518
$32.425
8 x 7.30352098
$58.428
$51.879
3:0" 15 x 7.3035209.8
$109.553
$97.274
4.0" 25 x 7.30352098
$182.588
$162.123
6.011 50 x 7.30352098
$365.176
$324.247
8.0" 80 x 7.30352098
$584.282
$518.795
12.62%
percent increase
Commodity Calculation
Charge
B = Adjusted Commodity Related Costs
$1,506,657.95
50% of Adjusted Commodity Labor Costs =
$753,328.98
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 =
_ _
$4,713,962.90
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
$1.723
Current commodity Charge =
$1.496
15.17% o
percent increase
APPENDIX 112"
Square Footage Charge
36.8 % of Construction Related Revenues Assisgned Credit to Fire Related Cost
U = Fire Related Costs =
i
- $1,688,393.150
V = Metered Fire Service Revenues =
$3,250.000
T = Adjusted Fire Related Costs
T = U - V =
$1 685,143.150
C = Projected Construction Related Revenues =
$20,000.000
Note: 368% of Construction Related Revenues assigned
as credittowards Square Footage Charge
R = Total Square Feet in Service Area =
39,866,402.00
Proposed Square Footage Charge per year = (T - .368C) / R =
0.042085141
Proposed Square footage charge per month =
000351
Current Square foot charge per month =
0.00274
28,10% Percent increase
APPENDIX 112"
Total revenue under proposed rates
Meter
Number of 5/8" meters
19
$7.304
$1,665.20
Number of 3/4" meters
29
$10.955
$3,812.44
Number of 1" meters
222
$18.259
$48,641.45
Number of 1.5" meters
157
$36.518 -`
$68,799.17
Number of 2" meters
496
$58.428
$347,764.45
Number of 3" meters
38
$109.553
$49,956.08
Number of 4" meters
57
$182.588
$124,890.21
Number of'6" meters
23
$365.176
$100,788.59
Number of 8" meters
1-
$584.282
$7,011.38
$753,328.98
Consumption
$1.723
3,165,940.80
$5,454,915.998
Square foot
0`.00351
39,866,402.00
$1,679,172.852
Standby Revenues =
$1,000000
Hydrant Meter Revenues =
$1,000.000
Construction` Related projected revenues =
$20,000.000
Metered Fire Service Revenues
$3,250000
Total revenues
$7,912,667.83
APPENDIX °2"
Total revenue finder current rates
Meter
Number of 5/8" meter
19
$6.485
$1,478.58
Number of 3/4" meter
29
$9.727
$3,385.00
Number of 1" meters
222
$16.212
$43,188.77
Number of 1.5" meter
157
$32.425
$61088.70
Number of 2" meters
496
$51.879
$308,783.81
Number of 3" meters
38
_ $97.274
$44,356.94
Number of 4" meters
57
$162.123
$110,892.13
Number of 6" meters
23
$324.247
$89,492.17
Number of 8" meters
1
$518.795
$6,225.54
$668,891.64
Consumption
$1.49600
3,165,940.80
$4,736,247.437
Square foot
0.00274
39,866,402.00
$1,310,807.298
Standby Revenues =
$1,000.000
Hydrant Meter Revenues =
$1,000.000
Construction Related projected revenues
=
$20,000.000
Metered Fire Service Revenues
$3,250.000
Total revenues
$6,741,196.37
APPENDIX 112"
Variables
Commodity Related Labor Expense =
$1,508,657.95
Standby Revenues =
$1,000.00
Hydrant Meter Revenues =
$1,000.00
Construction Related projected revenues =
$20,000.00
Commodity Non Labor Costs =
$4,713,962.90
Projected AF.of Water Sales —
7,268.00
Fire Related Costs =
$1,688,393.15 $7,911,014.00
Metered Fire Service Revenues
$3,250.00
Total square feet of building area in service are
39866402.00
Number of 5/8" meters
19
Number of 3/4" meters
29
Number of l" meters
222
Number of 1.5" meters
157
Number of 2" meters
496
Number of 3" meters
38
Number of 4" meters
57
Number of 6" meters
23
Number of 8" meters
1
1042
Current commodity rate
1.28
Current square footage rate per month `
0.0031
APPENDIX "T'
MALBURG GENERATING STATION RECYCLED WATER RATE
Billing Consumption Cost
Credit
Power
Month Acre -Feet
12-Jun 40.62 $ 14,524.04
$ 8,124.00
$
604.28
12-May 32.08 $ 11,621.36
$6,416.00
$
576.94
12-Apr 50.33 $ 17,854.61
$ 10,066.00
$
937.24
12-Mar 63.64 $ 22,073.88
$ 12,727.00
$
646.19
12-Feb 61.56 $ 21,414.52
$ 12,312.00
$
663.63
12-Jan 68.13 $ 23,497.21
$ 13,626.00
$
727.51
11-Dec 63.43 _ $ 22,007.31
$ 12,686.00
$
869.78
11-Nov 83.98 $ 28,521.66
$ 16,796.00
$
1,300.95
11-Oct 80.3 $ 27,355.10
$ 16,060.00
$
1,489.56
11-Sep 76.3 $ 26,087.10
$ 15,260.00
$
1,296.09
11-Aug 20.19 $ 7,207.83
$" 4,038.00
$
1,235.00
11-Jul 16.58 $ 5,919.06
$ 3,316.00
' $
721.76
Total 657.14 $ 228,083.68
$ 131,427.00
$
11,068.93
Total cost of water = Cost + Power - Credit =
$
107,725.61
City supplies services and overhead 15%
$
16,158.84
Total Cost to supply recycle water to MGS 2010 -2011
$
123,884.45
Water cost to increase by 0% in 2011-2012
Total cost to supply recycled water to MGS 2011-2012
$
123,884.45
Recycle Water Rate 2012 = cost/consumption
$
0.433
Recycled Water Rates All other customers
Assumes that that City will sell' 50 acre feet
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 / consumptis $
1.381
APPENDIX "41'
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811
NOTICE OF PUBLIC HEARING
WATER RATE INCREASE
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
Tuesday, February 19, 2013 at 9:00 a.m.
The City of Vernon is currently in the process of revising its water rates. The City charges these
rates to its water customers in order to fund the costs of providing safe and reliable water service.
You are receiving this notice because our records indicate that you are a water customer. New
rates, if approved by the City Council, are proposed to take effect March 1, 2013,
Proposed Rate Schedule
Each customer's potable water bill is composed of three separate rate components: (i) a monthly
charge based on the customer's meter size; (ii) a volumetric charge based on the volume of water
actually consumed by the customer; and (iii) a charge based on the number of square feet in the
customer's premises. This rate structure was designed to ensure that each customer is charged
for only the cost of providing service to that customer. In our industrial city, many customers
normally consume relatively little water on site, but rely on the constant availability of
pressurized water from their potable connection for on -site fire safety purposes. The square
footage charge reflects the cost of operating and maintaining infrastructure that allows this
constant water availability to all customers.
These tables show the existing and proposed potable water rates:
Meter Charge
(per month
Meter Size
Current
Proposed
% Change
5/8"
$6.48
$7.30
12.62%
3/4"
$9.73
$10.95
12.62%
1"
$16.21
$18.26
12.62%
1.5"
$32.42
$36.52
12.62%
2.011
$51.88
$58.43
12.62%
3.0"
$97.27
$109.55
12.62%
4.0"
$162.12
$182.59
12.62%
6.011
$324.25
$365.18
12.62%
8.0"
$518.79
$584.28
12.62%
Volumetric Charge
(per hundred cubic feet of water
Current
Proposed
% Change
$1.496
$1.723
15.17%
Square Foot Charge
(per improved square foot)
Current Proposed % Change
$0.00274 $0.00351 28.10%
You can find your meter size and our measurement of your premises on any past bill. If you need.
assistance, please contact Scott B. Rigg by calling 323-583-8811, extension 279, or bymail or in
person at 4305 Santa Fe Avenue, Vernon, CA 90058.
Automatic Pass -Through and Inflation Adjustments
The proposed $1.723/ hcf volumetric charge includes the following water supply charges:
Provider Purpose Portion of $1.723
Water Replenishment District Replenishment Assessments to 53.9 cents
Of Southern California Supply Water to City Wells
Central Basin MWD Purchased Water Charges 31.4 cents
Through January 1, 2018, if either of these providers change their rates as applicable to the City,
the respective portion of the volumetric charge will automatically adjust by the percentage
change in the entity's applicable rate, causing an adjustment to the $1.723 rate.
Additionally, each January 1, beginning January 1, 2014 and ending January 1,2018, the
remaining 83.5 cents of the volumetric charge, as well as each of the other charges shown on the
face of this notice, will be adjusted for inflation by multiplying the rate shown on the notice by
the percentage change since December 2012 in the Consumer Price Index for All Urban
Consumers for Los Angeles.
These "pass through" and inflation adjustments will without an additional hearing by the City
Council. You will be mailed notice of any pass through adjustment before it goes into effect.
Your Opportunity to Be Involved
On Tuesday, February 19, 2013 at 9:00 a.m. in the City Council Chambers located at 4305
Santa Fe Avenue, Vernon, CA 90058, the City Council will hold a public hearing on the
proposed water rates. At the hearing, the Council will consider all oral and written testimony
regarding the proposal._ You may also submit a formal written protest against the rate increase
proposal (which includes the automatic adjustments). Written protests must be signed by a
customer or property owner, and must include the assessor's parcel number or street address of
the property for which the protest is submitted. 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, Vernon, California, 90058. Protests which are mailed or delivered to the City
Clerk's Office must arrive at Vernon City Hall -by 9:00 a.m. on February 19, 2013 to be counted.
If at the conclusion of the public hearing, written protests against the rate increase proposal have
been filed (and not withdrawn) with respect to a majority of the parcels subject to the proposed
increase, the City Council will not adopt the increase. Protests will be accepted and tabulated
according to the City's adopted Policy Governing the Acceptance and Tabulation of Utility Rate
Protest, which are available online at: Rise t�we�i e]
Miscellaneous Rates
In addition to the general rates shown above, the City has special additional service charges for
(i) recycled water, (ii) fire suppression -only service connections; (iii) standby connections for
2
customers primarily serviced by private well; and (iv) temporary connections. You can view
these rates, at [insert website].
Questions
For more information about the proposed water charges you may contact Scott B. Rigg at 323-
583-8811 at extension279, The documentation supporting the proposed water charges is
available in the office of Community Services and Water, Vernon City Hall, 4305 Santa Fe
Avenue, between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday.
3
cl�10/62
City of Vernon
NOTICE OF PUBLIC HEARING
WATER RATE INCREASE
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
Tuesday, February 19, 2013 at 9:00 a.m.
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811
The City of Vernon is currently in the process of revising its water rates. The City charges these
rates to its water customers in order to fund the costs of providing safe and reliable water service.
You are receiving this notice because our records indicate that you are a water customer. New
rates, if approved by the City Council, are proposed to take effect March 1, 2013,
Proposed Rate Schedule
Each customer's potable water bill is composed of three separate rate components: (i) a monthly
charge based on the customer's meter size; (ii) a volumetric charge based on the volume of water
actually consumed by the customer; and (Ili) a charge based on the number of square feet in the
customer's premises. This rate structure was designed to ensure that each customer is charged
for only the cost of providing service to that customer. In our industrial city, many customers
normally consume relatively little water on site, but rely on the constant availability of
pressurized water from their potable connection for on -site fire safety purposes. The square
footage charge reflects the cost of operating and maintaining infrastructure that allows this
constant water availability to all customers.
These tables show the existing and proposed potable water rates:
Meter Charge
(per month)
Meter Size
Current
Proposed
% Change
5/8"
$6.48
$7.30
12.62%
3/4"
$9.73
$10.95
12.62%
1"
$16.21
$18.26
12.62%
1.51'
$32.42
$36.52
12.62%
2.011
$51.88
$58.43
12.62%
3.0"
$97.27
$109.55
12.62%
4.0"
$162.12
$182.59
12.62%
6.0"
$324.25
$365.18
12.62%
8.0"
$518.79
$584.28
12.62%
Volumetric Charge
(per hundred cubic feet of water
Current Proposed % Change
$1.496 $1.723 15.17%
Square Foot Charge
(per improved square foot)
Current Proposed % Change
$0.00274 $0.00351 28.10%
You can find your meter size and our measurement of your premises on any past bill. If you need
assistance, please contact Scott B. Rigg by calling 323-583-8811, extension 279, or by mail or in
person at 4305 Santa Fe Avenue, Vernon, CA 90058.
Automatic Pass -Through and Inflation Adjustments
The proposed $1.723/hef volumetric charge includes the following water supply charges:
Provider Purpose Portion of $1.723
Water Replenishment District Replenishment Assessments to 53.9 cents
Of Southern California Supply Water to City Wells
Central Basin MWD Purchased Water Charges 31.4 cents
Through January 1, 2018, if either of these providers change their rates as applicable to the City,
the respective portion of the volumetric charge will automatically adjust by the percentage
change in the entity's applicable rate, causing an adjustment to the $1.723 rate.
Additionally, each January 1, beginning January 1, 2014 and ending January 1, 2018, the .
remaining 83.5 cents of the volumetric charge, as well as each of the other charges shown on the
face of this notice, will be adjusted for inflation by multiplying the rate shown on the notice by
the percentage change since December 2012 in the Consumer Price Index for All Urban
Consumers for Los Angeles.
These "pass through" and "inflation adjustments" will take effect without an additional hearing
by the City Council. You will be mailed a notice of any pass through adjustment before it goes
into effect.
Your Opportunity to Be Involved
On Tuesday, February 19, 2013 at 9:00 a.m. in the City Council Chambers located at 4305
Santa Fe Avenue, Vernon, CA 90058, the City Council will hold a public hearing on the
proposed water rates. At the hearing, the Council will consider all oral and written testimony
regarding the proposal. You may also submit a formal written protest against the rate increase
proposal (which includes the automatic adjustments). Written protests must be signed by a
customer or property owner, and must include the assessor's parcel number or street address of
the property for which the protest is submitted. 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, Vernon, California, 90058. Protests which are mailed or delivered to the City
Clerk's Office must arrive at Vernon City Hall by 9:00 a.m. on February 19, 2013 to be counted.
If at the conclusion of the public hearing, written protests against the rate increase proposal have
been filed (and not withdrawn) with respect to a majority of the parcels subject to the proposed
increase, the City Council will not adopt the increase. Protests will be accepted and tabulated
according to the City's adopted Policy Governing the Acceptance and Tabulation of Utility Rate
Protest, which are available online at:
littp:HwNvw.cityofvemon.org/assets/does/conimunity services/Policy Governing Acceptance an
d Tabulation of Protests.pdf
2
Miscellaneous Rates
In addition to the general rates shown above, the City has special additional service charges for
(1) recycled water, (ii) fire suppression -only service connections; (iii) standby connections for
customers primarily serviced by private wells; and (iv) temporary connections. You can view
these rates, at:
http:HwNvw.cityofveition.org/assets/does/community services/Proposed-Schedule Water Rates
Effective March. l.pdf
Questions
For more information about the proposed water charges you may contact Scott B. Rigg at 323-
583-8811 at extension 279. The documentation supporting the proposed water charges is
available in the office of Community Services and Water, Vernon City Hall, 4305 Santa Fe
Avenue, between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday.
3