Resolution No. 2013-029RESOLUTION NO. 2013-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ADOPTING A REVISED SCHEDULE OF WATER RATES
WHEREAS, Pursuant to Article 1 of Chapter 25 of the Vernon
City 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, Section 25.1 of the Vernon City Code authorizes the
City Council to set water rates by resolution; and
WHEREAS, by its Resolution No. 2012-241 (the "Resolution of
Intention"), adopted on December 18, 2012, the City Council initiated
proceedings pursuant to Article XIII D, Section 6 of the California
Constitution with respect to a revised schedule of water rates; and
WHEREAS, the proposed water rates include automatic pass
through and inflation adjustments as set forth in the Resolution of
Intention; and
WHEREAS, on February 19, 2013, at the time and place
indicated in the Resolution of Intention, the City Council held a full
and fair public hearing regarding the proposed water rates (the "Public
Hearing"); and
WHEREAS, as required by law, notice of the Public Hearing was
mailed to all affected water customers not less than 45 days prior to
the hearing; and
WHEREAS, pursuant to the City's adopted "Policy Governing
for the Acceptance and Tabulation of Protests" (the "Protest Policy")
the Interim City Clerk has accepted written protests against the
proposed water rates; and
WHEREAS, the Interim City Clerk has determined and the City
Council hereby confirms that a majority protest against the proposed
water rates does not exist; and
WHEREAS, the City Council of the City of Vernon desires to
revise the City's 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 of the City of Vernon hereby
adopts the Schedule of Water Rates set forth in Attachment "A" to this
Resolution subject to the automatic pass through and inflation
adjustments set forth in Attachment "B" to this Resolution. Staff is
authorized to implement the automatic adjustments and cause such
adjustments to take effect without further action by the City Council.
Such automatic adjustments shall not constitute "increases" in the
water rates for purposes of Article XIII D, Section 6 of the
California Constitution.
SECTION 3: The rates approved by this Resolution shall be
effective as of March 1, 2013.
SECTION 4: The City Council of the City of Vernon finds and
determines that:
(a) Revenues derived from the rates imposed by this
Resolution will not exceed the funds required to provide water
service.
(b) Water rates are used solely to fund costs associated
with providing water service, and, therefore, revenues derived from
the rates imposed by this Resolution will not be used for any purpose
- 2 -
other than providing water service.
(3) The amount of water rates imposed upon any parcel or
person as an incident of property ownership will not exceed the
proportional cost of the service attributable to.the parcel.
(4) Water rates are imposed only for services actually used
by, or immediately available to, the water customer.
(5) The water rates are not imposed for general governmental
services where the service is available to the public at large in
substantially the same manner as it is to property owners.
SECTION 5: The City Council of the City of Vernon finds
that the actions taken by this Resolution are exempt from the
requirements of the California Environmental Quality Act because the
sole function of .this Resolution is to adopt revised rates for water
service within existing service areas to fund costs set forth in
Section 15273(a) of the CEQA implementation guidelines.
- 3 -
SECTION 6: The Interim City Clerk, or Deputy City Clerk of
the City of Vernon shall certify to the passage, approval and adoption
of this resolution, and the Interim City Clerk, or Deputy City Clerk,
of.the City of Vernon shall cause this resolution and the Interim City
Clerk's, or Deputy City Clerk's, certification to be entered in the
File of Resolutions of the Council of this City.
APPROVED AND ADOPTED this 19th day ofFebruary,
(2013.
V Dana Reed
Interim City Clerk /
Name: William J. DaViS
Title: Mayor / or -
- 4 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I . Dana Reed Interim City Clerk / Deputy City C"_�� of
the City of Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. 2013-29, 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, February 19, 2013, and thereafter was
duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of F ruary, 2013, at Vernon, California.
(SEAL)
V Dana Reed
Interim City Clerk / DQputy Sits Cl
- 5 -
ATTACHMENTS
Attachment A
Schedule of Water Rates
Basic Rates
A. Monthly meter rates (VMC Sec. 25.2)
Meter Size
Rate
5/8"
$7.30
9"
$10.95
1"
$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
fG�
8" Meter: 1,500 hcf/month
If consumption is at or below minimum, customer pays
charge (Basic Rate B) based on minimum consumption,
actual consumption. Additionally customer must pay
(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
volumetric
rather than
meter charge
A - 2
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
the remaining 83.5 cents of the volumetric
the other "Basic Rates", will be adjusted
the rate set forth in the council -adopted
change since December 2012 in the Consumer
Consumers for Los Angeles.
and ending January 1, 2018,
charge, as well as each of
for inflation by multiplying
resolution by the percentage
Price Index for All Urban
A - 3
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: February 25, 2013
TO: S. Kevin Wilson, Director of Community Services & Water
FROM: Deborah Juarez, Records Management Assistant
RE: Resolution No. 2013-29 — A Resolution of the City Council of the City of Vernon Adopting
a Revised Schedule of Water Rates
Transmitted herewith is a copy of Resolution No. 2013-29 referenced above, which was approved by City
Council on February 19, 2013.
Thank you.
Attachment
c: William Fox
Scott Rigg
Anthony Serrano
Resolution No. 2013-29
FS�y: RECEIVED
FEB 13 2013
CItYAD ISTRA N
FEB 13.`?013
my CLERKS GfME STAFF REPORT
COMMUNITY SERVICES & WATER DEPARTME T
DATE: February 19, 2013
TO: Honorable Mayor and City Council
•W
FROM: Samuel Kevin Wilson, Director of Community Services & Water
RE: Water Rate Adjustment — A revised water rate adjustment is required to fully
fund the City's water enterprise
Recommendation
It is recommended that the City Council find the proposed water rate adjustment is statutorily
exempt from the provisions of the California Environmental Quality Act (CEQA) under Section No.
15273 of the CEQA Guidelines.
It is recommend that the City Council approve the revised water rate schedule at the February 19,
2013 City Council meeting in order to fully fund the City's enterprise costs. The revised rate schedule
should be made effective March 1, 2013.
Potable Water Rates
In 1995 the City of Vernon (City) retained Donald R. Howard Consulting Engineers, hic.
(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. 1 illustrates the cost
increases:
Table No. 1
Date of Increase -Surface Water
Cost Per Acre -Foot
Prior to July,!, 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
-Tanuary 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 26.39 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 afire 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 die 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 "l" 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 $1.496
$1.723
15.17-Percent Increase
Square Footage Rate
1 $0.00274
$0.00351
28.10-Percent Increase
T.M. Nn Z —MP*oY Chnran
Meter Size
Current Rate
Proposed Rate
Percent Difference + .
5/8"
$6.48
$7.30
12.62
$9.73
$10.95
12.62
V,
$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
46
$162.12
$182.59
12.62
..0"
0"
$324.25
$365.18
12.62
8.0',
1 $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 sate structure remains low when compared to
neighboring cities:
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"
IICF
in HCF/Units
8Inch
Cost
Annual Cost
City of Vernon
(Current)
Business"A"
$162.12
$1.496
5,500
0.00274
1 $2.00
1 $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 -lam
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
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
1 $3.004
5,500 -
0
1 $40.00
1 $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
$17,638.50
$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
8Inch
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
$1.950
200
1 0
$92.75
1 $531.32
$6,375.84
CityofVemon
-
(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 ofSanlaFe
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 Pe
Springs -Golden
State
Business "B
$173.45
$3.004
200
0 1
$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
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
AlZency 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
$2.718
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 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 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 year 2012-2013; therefore, the City's recycled
water rate structure was not adjusted. The recycled water rates are reflected Appendix "3."
Table No. 6
Current Rate
Proposed Rate
Percent Difference
Recycled-CBMWD
Service Area
$f.381
$1.381
O-Percent
Recycled-Malburg
Generating Station
$0.434
$0.434
0-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, pursuant to Proposition 218 and adopted City
Council policy, the City Council cannot approve a rate increase if a majority of affected parcels (or a
majority of customer accounts) submit written protests against the increase. Staff has mailed to affected
5
customers a notice of the proposed rates and of the February 19, 2013 hearing on those rates. As required
by Proposition 218, this notice was mailed no less than 45 days before the public hearing.
The notice advised customers of their right to file a written protest, and the City Clerk has been accepting
protests according to the policy adopted by the City Council on December 18, 2012. As of the date that
this staff report was drafted, the City had received zero protests. The Water Department has
approximately 1,130 customers and serves approximately 870 parcels. Therefore, even if every
protest is valid, there are not yet sufficient protests to constitute a majority protest. After the close
of the public hearing, the Interim City Clerk will tabulate any additional protests received during or prior
to the hearing and will determine whether a majority protest exists. So long as no majority protest exists,
the City Council may move forward with adoption of the rate increase. The steps the City must take under
Proposition 218 to increase its water rates are:
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 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 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 December 2012 in the Consumer Price Index for All Urban
Consumers for Los Angeles.
Fiscal Impact
The total projected revenues are approximately $7,912,667.83, The total projected department
expenditures, including capital improvements are anticipated to be $7,911,014.00.
SKW/sr
Enclosures -
a
.o
a
o
o
o
a
o
�
E
w
E
U
qq
ce
9
�.
•o
�.
'�.
N
p
,�
g
aOa
N
E
ti
c
IR
m
V..
O
0
d
16
O
a
a
O'
4
ao
w
m
0
.
o
.. o
H
n
o.
.mi
r
Z .N
IwL
L
�d
�
m
N
C.
o.
d
'Y
r
Q'
.�
..
'_•
W
m
OH
�
.�
N
H
H.
a
N
�^
�
o�
tYY0
dryy
w��
0
N
h
XM
G m
ul
W .p
a
a
!q
APPENDIX n211
Calculation of City of. Vernon Water Rates
Service. Charge Calculation
Meter Size Number of Meters Capacity -Factor
Number of Meters X
(X)
Capacity Factor
5/$" 1.9
1,
19
3/411 29
1.5
43.5
1 222
2.5.
555
1.5" 157:
5
. 785 .
2 0 ; 496
8
3968
38
15.
570
4.0" 57
25,
1425
23
50,
1150
8.0.1 1.
80
80
Total 1642
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,M8.98
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
518" l . x 7.30352098 $7.304
$6,485
3/41' 1.5' x7.36352098 $10:955'
$9:927
x 7.30352098 $18.:259
$16i212
x : - . 7.30352098 $36.518
$32.425 .
8.,x 7.30352008. '.$58.428
$51.879
10!, 15 X. 7.3035209.8 $1091.5.53
197.274
4:0" 25- x 7.30352698 $.182.588
$162,123
6.09 50. x 7.30352098 '$365.176
$324:247
80 is 7,30352098 $584.282
$518.795
12.62% percentincrease
Commodity Calculation Charge .
B =Adjusted Commodity Related Costs =
$1;506,657.95
50% of Adjusted Commodity Labor Costs =
$751,328.98.
C = Construction Pelated. Projected Revenues
$20;00.0.00
NoW .63.2"/u'o'f Construction Related Revenues assigned
168,a 'cre'dit against Commodity Charge
N = Commodity Non.Labor.Cost§ _
$4,.713;962:90
Projected Water Sales in acre feet=
7,26.9.00.
A =.projected water sales in 100 CF
3,165,940.80
Proposed Commodity Charge = (5 B - .632 C+N) J A
$1:723
Current commodity Charge =
$1.496
15.17% percent increase
APPENDIX " 2 "
....Meter.
Numbet of 5/8"'rnet6rs
19
$7.304
$1,665,20
Number of314".meters
29
$10.955
$3,81.2.4..4
Number:of 1" meters ..
22Z .:..
`$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 of4..!meters
57 :
$L82.588
$124%,890l21.
'"6Yof'6'meters
,
2.9
$365:176
$i00';788.59:
Number of 8'.' meters .
1
$584.282
$7,01138.
$753,328:98.
Consumption
$1.723.. 3,165,940,80 . $5,454,915.998
Square foot .
q.0.0351 39,866;402.00 $1,679,172.852
APPENDIX 11211
Total .revenue under current rates
Meter
Number of5/8" meter,_
19,
$6.485'
$1;478.58
Number of.3/4" Trteter
29
K727:.
$.3,385.00
Number of lP meter ;
222.
V6.212
$43;188.77 .
plumber. of 1.S' irieter
157,
$32.425
$6.1,088.70
Number. of2":meters
496
$51.879
$308;783.81
Number of3'!:rneteis _
38
$97.274:..
$44;356.94,
—Nu nber.44" meters
57
$162.123
$110;892.13
Njimberof, 6".meters:.
23
$324.247.
$89,492'17
Numbs of8"meters
l
$518':795.
$6;225:54
$66.8,891.64
Consurnption
$1.49600
3,165,940.80
$4;736;247.437
Square,foot.
0.00274
39,866,402.00
$11310;807.298
Standby Revenues.= :.
$1,000:000
gydrant Meter Revenues =
$1 600; 000
C6nstruoti6xi:Related frojedied,revenues
$201000,000
Metered Fire Service Revenues
$3;256.000
Total revenues
$6.;741,196.37.
APPENDIX "2"
i
Variables .
I
Comm odityRelatedLab orExpense-
$1;508,657.95.
Standby Revenues =
$1,000:00
Hydrant,Metei 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
Are Related Costs =
$1,688,393.15 $7,91,1,014:OQ
Metered Fire:Semce Revenues
$3,250.00
Total square feet of building area in service are
39866402.00
Number of 5/8". meters
19
Ntuiitter of 3/4"'meters
29
Number of4." meters.
222
Number of L5" meters
137
Number of 2" meters
496 .
Number of3".meters
.
38
Number of 4"meters .
57
Number :of 6" meters. _
23
Number. of 8" meters
1
Current commodity rate
1042
.
Current square footage rate•per month
1,28.
O.O.Q31
APPENDIX "3"
MALBURG GENERATING STATION RECYCLED WATER RATE
Billing Consumption Cost
Credit
Power
Month - gcre=Feet
-
12-Jun 40.62- $ 14,524.04
$
8,124.00
$
604.28
12-May AM $ 11,621.36
$
6,416.00
.$
576.94
12-Apr. 50,33 $ 17,854.61
. $
10,066.00
:$
937.24
12=Mar 63.64 $ 22,073.8.8.$
12 727.0.0.$
646.19
12-Feb 61.56 $ 21,414.52
$
'.12,312,00
$-
663:63
12=lan 68.13. $ 23,497.21
.$
131,626.00
$
7V.51
11-Dec 63.43 . $ 22,007. 1
'$
'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 $ 26,08.7:10 ,
$
15;260.00
$
..
1,296.09
11-Aug 20.19 $ 7,107.83
$
4,038:00
$
1,235.00
11-Jul _ 16.58 $ 5,919.06
$ ,
3;316.00
$
72135
Total 657.14 $ 228,083.68 .
$
131,427..00
$
11,06B.93
Total cost of water = Cost + power - Credit =
$
107,725.61
Citysupplies 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 So acre feet a month of recycle
water
Central Basin Water rate for 50 acre feet per month.= (SOAf x'$536) _ $26;150/mon.
Total water Sales for the year
$
313,8000
City supplies services and overhead 15%
$41,070.00
Total cost
$360;870:00
Recyclewater rate for all othercustomers='cost/.consumptic $ 1,391
City of Vernon
APPENDIX "4"
NOTICE OF PUBLIC HEARING
WATER RATE INCREASE
City Council Chatnb'ers
4305 Santa Fe Avenue
Vernon, CA 90058
Tuesday, February 19, 2013 at 9:00 a,m.
005 Santa Fe Avenue .
Vernon, CA 90058
(323)593-8811
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 (iii) a charge based'on the number of square feet itrthe
customer's premises. This rate stricture 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 cOnstaat.availability of
pressurized water frorn their potable connection for on -site fire safety purposes. The square
footage charge'refleots 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
or month
Meter Siie
Current
Proposed.
% Change
5/8"
$6.48
$7.30
12.62%
3/4"
$0.73
$,10.95
12.62%
1".
$16.21
$10.26
12.62%
7.5"
$32.42.
$36.52
12:62%
2:0"
$51.88
$58.43
12.6204
10"
$97.27
$109.55
12.62%
4:0"
$162.12..
$182.591
12.62%
6..0"
$324,25.
$365.18
12.62%
8.0"
$518.791
$584.281
12.62%
Volumetric Charge
(per hundred Cubic feet of water
Current
Proposed.
% Change
$1.496
$17723
15.17%
Square Foot Charge
(per improved square foot)
Current Proposed % Change
$0.00274 $0.00351 28:1004
You can find your meter size and our measurement of your premises on any past bill. If you need
assistanee, 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/ hef volumetric charge includes the following water supply charges:
Provider
Pumbse 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 3I A cents
Through January' l , 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 _iii tlie.entity's applicable rate, causing an adjustment to the $1:723. rate.
Additionally, each January I,. beginning. January 1, 2014 and ending January 1,.20I8, 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 shownon 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 sighed by a.
customer or property owner, and must include the assessor's parcel number or street address of
the proI5erty'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 tothe 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:. .
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
3
customers primarily serviced by private well; and (iv) temporary connections. You can view
these rates, at ....
Questions
For more information about the proposed water charges you may contact Scott B: PU at 3237
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
Allied Sales & Distribution, Inc.
Eggs - Butter - Cream Cheese - Cheese
Fruit - Shortening - Margarine
February 12, 2013
Attn: City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Sir or Madam,
jfWew-C-Q
Ffg� f &,A13
CR9,Rk K'S OEUIPE
I hereby protest the proposed increase in potable water rates, which will be discussed
by the City Council Chambers of the City of Vernon at the public hearing scheduled to be
held on February 19, 2013.
Thank you,
1 W /
Gregg Aens
President
Allied Sales & Distribution, Inc.
202152nd Street
Vernon, CA 90058
2021 East 52nd Street, Vernon, California 90058 Phone: (323) 589-9380 FAX: (323) 589-1996
r-?D13 -a9
City of Vernon
NOTICE OF PUBLIC BEARING
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 (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%
2.0"
$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
1 $584.28
12.62%
Volumetric Charge
(per hundred cubic feet of water
Current
Proposed
% Change
$1.496
$1.723
1.5.17%
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/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, 2.014 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:
http://www.cityofvernon.org/assets/docs/community services/Policy GoverningAccentance an
d Tabulation of Protests.ndf
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
customers primarily serviced by private wells; and (iv) temporary connections. You can view
these rates, at:
hU://www.citvofvernon.org/assets/does/community services/Proposed Schedule Water Rates
Effective March l.ndf
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.