LODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, SEPTEMBER 26, 2023
A.
Call to Order / Roll Call
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, September 26, 2023, commencing at 7:15 a.m.
Present: Council Member Bregman, Council Member Nakanishi, Council Member Yepez, Mayor Pro Tempore Craig, and Mayor Hothi
Absent: None
Also Present: City Manager Schwabauer, Interim City Attorney Lucchesi, and City Clerk Nashed B.
Topics
B-1
Receive Rate Information Regarding Proposed Future Water and Wastewater Rate Schedules Subject to Proposition 218 Public Hearing to be Held January 17, 2024 (PW) Public Works Director Charlie Swimley provided a brief overview of the topic and introduced Mark Hildebrand, of Hildebrand and Associates, who is the City's Rate Analysis Engineer.
Mr. Hildebrand provided a PowerPoint presentation regarding the 2023 Water/Wastewater rate study. Specific topics of discussion included overview, rate setting process, legal requirements, schematic of Water Utility fund/reserve structure, Water Enterprise cash balances, reserve policies, Water revenue, Water operating expenses, projected Water Capital spending, Water financial forecast and proposed rate revenue increases, historical water rate increases, water rate design, residential meter conversion program update, single family tiered rate design, single family tiered rates allocation, current and proposed metered rates (Year 1), current and proposed non-metered rates (Year 1), water bill impact analysis (Year 1), proposed five-year water rate schedule, water bill survey, drought surcharge policy, schematic of Wastewater Utility fund/reserve structure, Wastewater Enterprise cash balances, Wastewater revenue, Wastewater operating expenses, projected Wastewater Capital spending, highlighted large Capital projects, Wastewater financial forecast and proposed rate revenue increases, historical wastewater rate increases, wastewater rate design, current and proposed wastewater rates (Year 1), wastewater bill impact analysis (Year 1), proposed five-year wastewater rate schedule, wastewater bill survey, combined utility bill survey, and next steps.
Discussion ensued with Council Member Nakanishi, Mayor Pro Tempore Craig, Mr. Hildebrand, and Public Works Director Swimley regarding the TCP settlement funds.
Discussion ensued with Mayor Pro Tempore Craig, City Manager Schwabauer, and Public Works Director Swimley regarding the metered-rate transition process for water customers.
Discussion ensued with Mayor Pro Tempore Craig, Mr. Hildebrand, and Public Works Director Swimley regarding the types of customers utilizing 3-inch water meters.
Discussion ensued with Council Member Nakanishi and Mr. Hildebrand regarding the charges for the three different rate tiers.
Discussion ensued with Mayor Pro Tempore Craig, Public Works Director Swimley, Assistant City Manager Andrew Keys, and City Manager Schwabauer regarding the rate caps in other communities and CPI-based increases.
Discussion ensued with Council Member Nakanishi, City Manager Schwabauer, Interim City Attorney Lucchesi, Assistant City Manager Keys, and Mr. Hildebrand regarding the Proposition 218 process.
Public Works Director Swimley provided a recap of upcoming Capital Improvement projects.
In response to Mayor Hothi, Public Works Director Swimley confirmed that the hydrogen hub project is not included in the Capital Improvement projects.
Discussion ensued with Mayor Pro Tempore Craig and City Manager Schwabauer regarding the use of Impact Mitigation Fee funds.
In response to Council Member Nakanishi, Mr. Hildebrand explained the basis for usage rates for wastewater.
Mayor Pro Tempore Craig spoke regarding the impact of the rate increase on seniors.
Mayor Pro Tempore Craig indicated support for moving forward with the Prop 218 process.
Discussion ensued with Mayor Pro Tempore Craig, City Manager Schwabauer, and Mayor Hothi regarding the lack of programs to help low-income and seniors with water and wastewater bills.
Council Member Bregman indicated support for moving forward with the Prop 218 process and provided comments regarding low-income discount programs for water and wastewater bills.
Council Member Nakanishi indicated support for moving forward with the Prop 218 process.
Public Works Director Swimley commended his staff, particularly Water/Wastewater Superintendent Lance Roberts and Public Works Management Analyst Rebecca Areida, for their work.
Council Member Yepez indicated his support for moving forward with the Prop 218 process.
C.
Comments by Public on Non-Agenda Items
None.
D.
Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:07 a.m.
ATTEST:
Olivia Nashed
City Clerk