Agenda packet — Loma Linda City Council, January 9, 2024 (part 2 of 2)

DISTRIBUTION SUPERINTENDENT
Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class.

Specifications are not intended to reflect all duties performed within the job.

DEFINITION
Under limited direction of the Public Works Director, directs, manages, supervises, and coordinates the activities and operations of the Water Distribution division within the Public Works Department including installation, maintenance, operation, inspection, and repair of City of Loma Linda’s water distribution maintenance, sewer collections, customer service & meter reading program, and storm drain operations.

DISTINGUISHING CHARACTERISTICS
The Distribution Superintendent is distinguished by its broader scope of responsibility for all divisional maintenance operations, knowledge of maintenance construction and repair standards and practices, and accountability for coordinating maintenance projects, assignments, budget preparation, staff report preparation, employee development, and project prioritization and recommendations.

SUPERVISION RECEIVED AND EXERCISED
An employee in this class reports to the Public Works Director and provides direct supervision to Water and Wastewater supervisors, administrative, technical and support staff.

ESSENTIAL FUNCTIONS - Essential responsibilities and duties may include, but are not limited to, the following:

1. Assume management responsibility for assigned services and activities of the Water Distribution division including planning, coordinating, organizing, directing, and evaluating the work of maintenance personnel engaged in the installation, maintenance, operation, inspection, and repair of the City’s water distribution system, sewer collections, customer service & meter reading program, and storm drain operations.

2. Working knowledge of the City’s Emergency Response Plans.

3. Prepares and submits regulatory reports, ensuring reporting deadlines are adhered to, and division activities comply with established local, state, and federal rules and regulations. Maintain compliance with all regulatory agencies.

4. Observes and enforces all safety requirements involved in construction, maintenance and repair of the City’s water and wastewater system, including, but not limited to, confined spaces, trenches, vehicle, equipment and machinery operations, compressors and use of power tools.

5. Develops, gathers data, recommends, and implements utility policies and procedures in accordance with legal requirements and established standards

6. Assists in budget implementation, participates in the forecast of additional funds needed for staffing, materials and supplies, administer the approved budget, and prepare staff reports.

7. Inspects work in progress and upon completion to ensure conformance to established work standards; ensures that work is performed in accordance with safe work practices.

CITY OF LOMA LINDA
DISTRIBUTION SUPERINTENDENT (Continued)

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8. Completes paperwork relating to the completion of projects and daily operations. Processes purchase requisitions, orders, warrants and other documents relating to the administration of assigned work crews.

9. Recommends the appointment of personnel, provides and/or coordinates staff training, conducts performance evaluations, implements discipline procedures as required, maintains high standards necessary for the efficient and professional operation of the department.

10. Perform related duties and responsibilities as required.

KNOWLEDGE, SKILLS, AND ABILITIES
Knowledge of:
 Operations, services, and activities of water distribution systems.  Advanced methods and practices involved in the maintenance, repair and improvements of a water distribution system.
 Modern principles, practices and techniques of equipment and tools used for the improvement and maintenance of water distribution systems.
 Principles and practices of leadership, motivation, team building and conflict resolution.  Procedures, methods, materials, and techniques used in construction of water system projects.  Occupational hazards and standard safety practices.
 Pertinent local, state, and federal rules, regulations, and laws.  Principles and practices of budget and development preparation, implementation, monitoring, and administration.
 Considerable knowledge of the tools, equipment, and materials used in public utilities construction and maintenance.

Skill to:
 Successfully operate various software programs as required using computers and other hand held devices.
 Analyze problems, identify alternative solutions, project consequences of proposed actions and implement recommendations in support of goals.
 Establish and maintain cooperative working relationships with those contacted in the course of work, including the ability to interact effectively and courteously with the public, coworkers and vendors.
 Interpret and apply City and department policies, procedures, rules, and regulations.  Making sound, independent decisions within established policy and procedural guidelines.

Ability to:
 Oversee and participate in the management of a comprehensive water distribution program.  Work flexible hours and respond to emergency calls.
 Supervise, direct, and coordinate the work of subordinate staff.  Select, train, and evaluate staff.
 Participate in the development and administration of division goals, objectives, and procedures.  Prepare and administer large program budgets.
 Minimize public and employee safety hazards by conforming to required codes.  Work under pressure, handling significant problems and tasks that arise simultaneously and/or unexpectedly.
 Supervise subordinates in a manner conducive to full performance and high morale.

CITY OF LOMA LINDA
DISTRIBUTION SUPERINTENDENT (Continued)

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 Establishing and maintaining effective working relationships with staff, other City employees, and the public.

QUALIFICATIONS GUIDELINES
Experience, Education, and Training Guidelines
Experience:

Five (5) years of increasingly responsible experience in water distribution or wastewater, repair, and maintenance.

One (1) year of experience in water in a supervisory capacity.

Education:

High school graduation or evidence of equivalent educational proficiency.

Licenses and Certifications:

Required:

A valid California Class C driver’s license, acceptable driving record, and the ability to maintain insurability under the City’s vehicle insurance program.

Possession of a State Water Resources Control Board Grade II Water Distribution (D2) Operator certificate is required at time of application.

Ability to obtain State Water Resources Control Board Grade I Water Treatment (T1) Operator certificate within eighteen (18) months of hire.

Ability to obtain California Water Environmental Association Collection System Maintenance Grade II certificate within twenty-four (24) months of hire.

Highly Desirable:

State Water Resources Control Board Grade III Water Distribution (D3) Operator certificate is highly desirable.

State Water Resources Control Board Grade II Water Treatment (T2) Operator certificate is highly desirable.

California Water Environmental Association Collection System Maintenance Grade III certificate is highly desirable.

Special Requirements:

Provide coverage after normal workday hours and emergency calls on short notice during nights, weekends, and holidays.

CITY OF LOMA LINDA
DISTRIBUTION SUPERINTENDENT (Continued)

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WORKING CONDITIONS
Essential functions and duties require the following physical abilities and work environment Physical Characteristics
The physical and mental demands described here are representative of those that must be met by employees to successfully perform the essential functions of this class. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Physical Demands
This classification will generally work thirty percent (30%) indoors and seventy percent (70%) outdoors.

Outdoors:

Incumbents require sufficient mobility to work in a field environment; walk, stand, and sit for prolonged periods of time. Frequently stoop, bend, kneel, crouch, crawl, climb, reach, twist, push, pull, lift; sometimes in confined spaces or trench excavations, wear protective apparel and able to carry up to fifty (50) pounds. Operate assigned equipment, tools, and vehicles. Ability to verbally communicate to exchange information. See in the normal visual range with or without correction; vision sufficient to read printed documents and to operate assigned equipment. Operating a motor vehicle to travel to various City sites; including traversing uneven terrain, climbing ladders, stairs, and working alongside field crews.

Perform repetitive movements of hands and or wrists.

Indoors:

While indoors, must possess mobility to work in a standard office setting and use standard office equipment. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator, operate standard office equipment, and handle and feel objects, tools, or controls. Bends, stoops, kneels, reaches, pushes, and pulls drawers, open and closed, to retrieve and file information.

Visual capability to read printed materials, a computer screen, and the ability to adjust focus. Hearing and speech abilities to communicate in person, before groups, and over the telephone.

Mental Demands
While performing the duties of this class, an employee uses written and oral communication skills; reads and interprets data, information and documents; analyzes and solves problems; uses math and mathematical reasoning; observes and interprets people and situations; learns and applies new information and skills; performs highly detailed work; deals with emergency situations; and interacts with others encountered in the course of work, including frequent contact with the public and dissatisfied individuals.

Work Environment
Work includes inside and outside environments; in varying noise levels, temperatures, and weather conditions with potential exposure to hazards. May be exposed to situations involving hazardous traffic conditions, dust, grease, gases, noxious odors, vibrations, bacteria, chemicals, biohazardous materials, irate customers, or other unforeseen circumstances. Work and walk on various types of surfaces including slippery or uneven surfaces and rough terrain.

Incumbents will be required to travel from site to site within City of Loma Linda limits. The work schedule will include the need for irregular after hours work as part of the normal job duties, including availability to respond to emergencies.

CITY OF LOMA LINDA
Approved: 11/14/2023 Group: Unrepresented
FLSA Exemption Status: Exempt DOT Participant: No

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TREATMENT SUPERINTENDENT
Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class.

Specifications are not intended to reflect all duties performed within the job.

DEFINITION
Under limited direction of the Public Works Director, directs, manages, supervises, and coordinates the activities and operations of the Water Treatment division within the Public Works Department including the City’s backflow/cross connection, water conservation, blend reduction operation, water quality sampling and monitoring, and groundwater treatment systems.

DISTINGUISHING CHARACTERISTICS
The Treatment Superintendent is distinguished by its broader scope of responsibility for all divisional maintenance operations, knowledge of maintenance construction and repair standards and practices, and accountability for coordinating maintenance projects, assignments, budget preparation, staff report preparation, employee development, and project prioritization and recommendations.

SUPERVISION RECEIVED AND EXERCISED
An employee in this class reports to the Public Works Director and provides direct supervision to Water and Production supervisors, administrative, technical and support staff.

ESSENTIAL FUNCTIONS - Essential responsibilities and duties may include, but are not limited to, the following:

1. Assume management responsibility for assigned services and activities of the Water Treatment division including planning, coordinating, organizing, directing, and evaluating the work of personnel engaged in the City’s backflow/cross connection, water conservation, blend reduction operation, water quality sampling and monitoring, and groundwater treatment systems.

2. Working knowledge of the City’s Emergency Response Plans.

3. Performs Chief Operator duties for treatment and distribution; serves as back up shift operators as needed.

4. Prepares and submits regulatory reports, ensuring reporting deadlines are adhered to, and division activities comply with established local, state, and federal rules and regulations. Maintain compliance with all regulatory agencies.

5. Observes and enforces all safety requirements involved in construction, maintenance and repair of the City’s water system, including, but not limited to, confined spaces, trenches, vehicle, equipment and machinery operations, compressors and use of power tools.

6. Develops, gathers data, recommends, and implements utility policies and procedures in accordance with legal requirements and established standards

7. Assists in budget implementation, participates in the forecast of additional funds needed for staffing, materials and supplies, administer the approved budget, and prepare staff reports.

8. Inspects work in progress and upon completion to ensure conformance to established work standards; ensures that work is performed in accordance with safe work practices.

CITY OF LOMA LINDA
TREATMENT SUPERINTENDENT (Continued)

Page 2 of 4 ends

9. Completes paperwork relating to the completion of projects and daily operations. Processes purchase requisitions, orders, warrants and other documents relating to the administration of assigned work crews.

10. Recommends the appointment of personnel, provides and/or coordinates staff training, conducts performance evaluations, implements discipline procedures as required, maintains high standards necessary for the efficient and professional operation of the department.

11. Oversee, direct, and participate in operation of wells, boosters, reservoirs, hydraulic valves, chlorinators, analyzers, SCADA, and other equipment as required.

12. Maintain treatment and production facilities and equipment.

13. Perform related duties and responsibilities as required.

KNOWLEDGE, SKILLS, AND ABILITIES
Knowledge of:
 Operations, services, and activities of water treatment systems.  Advanced methods and practices involved in the maintenance, repair and improvements of a water treatment system.
 Modern principles, practices and techniques of equipment and tools used for the improvement and maintenance of water treatment systems.
 Principles and practices of leadership, motivation, team building and conflict resolution.  Procedures, methods, materials, and techniques used in construction of water system projects.  Occupational hazards and standard safety practices.
 Pertinent local, state, and federal rules, regulations, and laws.  Principles and practices of budget and development preparation, implementation, monitoring, and administration.
 Considerable knowledge of the tools, equipment, and materials used in public utilities construction and maintenance.

Ability to:
 Oversee and participate in the management of a comprehensive water treatment program.  Work flexible hours and respond to emergency calls.
 Supervise, direct, and coordinate the work of subordinate staff.  Select, train, and evaluate staff.
 Participate in the development and administration of division goals, objectives, and procedures.  Prepare and administer large program budgets.

CITY OF LOMA LINDA
TREATMENT SUPERINTENDENT (Continued)

Page 3 of 4 ends

 Minimize public and employee safety hazards by conforming to required codes.  Work under pressure, handling significant problems and tasks that arise simultaneously and/or unexpectedly.
 Supervise subordinates in a manner conducive to full performance and high morale.  Establishing and maintaining effective working relationships with staff, other City employees, and the public.

QUALIFICATIONS GUIDELINES
Experience, Education, and Training Guidelines
Experience:

Five (5) years of journey level experience in water utility operation.

Two (2) years of experience in water in a supervisory capacity.

Education:

High school graduation or evidence of equivalent educational proficiency.

Licenses and Certifications:

Required:

A valid California Class C driver’s license, acceptable driving record, and the ability to maintain insurability under the City’s vehicle insurance program.

Possession of a State Water Resources Control Board Grade II Water Treatment (T2) Operator certificate is required at time of application.

Possession of a State Water Resources Control Board Grade II Water Distribution (D2) Operator certificate is required at time of application.

Ability to obtain a State Water Resources Control Board Grade III Water Treatment (T3) Operator certificate within eighteen (18) months of hire.

Ability to obtain a State Water Resources Control Board Grade III Water Distribution (D3) Operator certificate within eighteen (18) months of hire.

Special Requirements:

Provide coverage after normal workday hours and emergency calls on short notice during nights, weekends, and holidays.

WORKING CONDITIONS
Essential functions and duties require the following physical abilities and work environment Physical Characteristics

CITY OF LOMA LINDA
TREATMENT SUPERINTENDENT (Continued)

Page 4 of 4 ends

The physical and mental demands described here are representative of those that must be met by employees to successfully perform the essential functions of this class. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Physical Demands
This classification will generally work thirty percent (40%) indoors and seventy percent (60%) outdoors.

Outdoors:

Perform repetitive movements of hands and or wrists.

Indoors:

Visual capability to read printed materials, a computer screen, and the ability to adjust focus. Hearing and speech abilities to communicate in person, before groups, and over the telephone.

RESOLUTION NO. R-2024-XX

A RESOLUTION OF THE LOMA LINDA CITY COUNCIL, ESTABLISHING THE NEW SALARY TABLE FOR EMPLOYEES EFFECTIVE JANUARY 1, 2024.

WHEREAS, the City of Loma Linda (“City”) contracts with the California Public Employees’ Retirement System (“CalPERS”) to provide retirement benefits for its employees; and
WHEREAS, California Code of Regulations, Title 2, Section 570.5 requires governing bodies of local agencies contracting with CalPERS to approve and adopt a publicly available pay schedule in accordance with public meeting laws; and WHEREAS, the pay schedule must identify each position by title, the individual pay rate amount or ranges for that position, and the time base upon which the amounts are based; and
WHEREAS, two new classifications and related salary ranges have been proposed, attached hereto as Exhibit B and Exhibit C; and
WHEREAS, the City of Loma Linda desires to establish a new salary table for employees, due to the State of California mandated minimum wage increase, effective January 1, 2024; and

NOW THEREFORE, BE THE LOMA LINDA CITY COUNCIL DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:

Section 1: This Resolution shall take the place of all existing Resolutions or orders of the City Council as they relate to the subject matter contained herein. However, in no event shall this Resolution rescind, supersede, alter or in any way, regarding subject matter that is not contained in this Resolution. In the event that any provision of this Resolution is in conflict with an employment contract of an unrepresented and/or unaffiliated City employee, the applicable employment contract shall supersede and govern the City’s policies and practices with regard to that particular employee.

Section 2: The pay schedule for all employees of the City, which shall be effective January 1, 2024, is hereby updated in the Salary Table, attached hereto as Exhibit A.

Section 3: The pay schedule contained in the Salary Table in Exhibit A is hereby adopted and will be made available for public viewing via the City website for no less than five (5) years.

PASSED AND ADOPTED by the City Council of Loma Linda, California this 9th day of January, 2024, by the following vote:

AYES:

ABSENT:

NOES:

Phillip Dupper, Mayor
ATTEST:

Lynette Arreola, City Clerk
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Amendment to the City Attorney Agreement [City Manager] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3G
To
City Council
From
T Jarb Thaipejr, City Manager
Attachments
2005 Agreement for Legal Services.pdf
2022 Agreement for Legal Service.pdf
Amendment to Agreement for Legal Services 2024.pdf
Approved/Continued/Denied by City Council
Date:

RECOMMENDATION:

It is recommended that the City Council approve an amendment to the City Attorney Agreement effective March 1, 2024, through March 1, 2025, adjusting the fee schedule and authorizing the City Manager to execute the amendment.

BACKGROUND:

The City entered into an agreement for City Attorney services with Robbins & Holdaway attorneys at law in 1996. In 2005 City Council approved an amendment to the agreement adjusting the fee schedule (2005 Agreement Attached). The City of Loma Linda and Diane Robbins entered into a new agreement in 2022 with the retirement of Mr. Holdaway. This agreement maintained the same rates that were set in 2005 (2022 Agreement Attached). The term of the agreement is continuous, without any specified period. The Amended Agreement is attached.

ANALYSIS:

The proposed adjustments are as follows:
$200 per hour effective March 1, 2024
$225 per hour effective September 1, 2024
$250 per hour effective March 1, 2025
ENVIRONMENTAL IMPACT:

N/A
FINANCIAL IMPACT:

Funding for this service is provided in Expense Account No. 0011940-51840.

1 AGREEMENT FOR LEGAL SERVICES
THIS AGREEMENT is made and entered into this first day of January 2022 by and between the CITY OF LOMA LINDA, (a public entity) and the CITY OF LOMA LINDA HOUSING AUTHORITY (hereinafter collectively “CITY”), and DIANE EVANS ROBBINS, of the firm ROBBINS AND HOLDAWAY, A PROFESSIONAL CORPORATION, attorneys at law (hereinafter "ATTORNEY").

WITNESSETH:

WHEREAS, CITY desires the services of an attorney to act as City Attorney for CITY and as Counsel for its affiliated Housing Authority and Successor Agency; and WHEREAS, ATTORNEY is a member of the State Bar of the State of California permitted to practice in all courts of said State, has been serving as Deputy City Attorney for CITY, and is willing to act as City Attorney for CITY.

NOW THEREFORE, BE IT MUTUALLY AGREED as follows:

1. TERM: The Term of this Agreement shall be continuous, without any specified period.

ATTORNEY may terminate this Agreement upon the giving of thirty (30) days' written notice to CITY. CITY may terminate this Agreement at any time by a majority vote of the members of the CITY's City Council.

2. COMPENSATION: For compensation at an hourly rate as set forth below, plus all actual costs incurred, ATTORNEY agrees to those duties set forth in Exhibit A attached hereto and made a part hereof by this reference. The ATTORNEY shall represent CITY in all litigation except that for which CITY retains special litigation counsel.

3. ASSOCIATE: ATTORNEY agrees that an associate of the firm ROBBINS AND HOLDAWAY, A Professional Corporation, will be available to provide the legal services at the compensation set forth herein if, or whenever, ATTORNEY is not available, and shall serve as Deputy City Attorney.

4. HOURLY RATE: The hourly rate of ATTORNEY for legal services set forth herein is hereby established to be the sum of $175.00 per hour for such ATTORNEY, or her associate, rendering the legal services. There shall be no charge for travel time to and from CITY's offices. Any change in the Fee Schedule of the law firm shall be submitted to and approved by CITY's City Council/ Boards. The proposed Fee Schedule for CITY as submitted herewith as Exhibit B and incorporated herein by this reference, dated January 1, 2022, is hereby approved.

5. BENEFITS: City shall provide to Attorney insurance benefits or equivalent cafeteria plan credits to the same extent provided to City employees generally.

6. PERFORMANCE REVIEW: The City Counsel of CITY and the Board of AGENCY may formally review the performance of ATTORNEY on an annual basis, if so desired. The form and content of said evaluation shall be as determined by the CITY. 2 7. PROFESSIONAL LIABILITY INSURANCE: The ATTORNEY will maintain lawyer’s professional liability insurance with limits of at least $500,000/ $1,000,000 and will make available upon request a copy of the certificate of insurance showing that said insurance is in full force and effect with an insurance company admitted by the State of California.

IN WITNESS WHEREOF, this Agreement has been executed on this first day of January, 2022 at Loma Linda, California.

CITY OF LOMA LINDA
______________________________
Mayor

CITY OF LOMA LINDA SUCCESSOR AGENCY
Chairman

CITY OF LOMA LINDA HOUSING AUTHORITY
Chairman
ATTORNEY:

Diane Evans Robbins
ROBBINS AND HOLDAWAY, A Professional Corporation
Attest:
_____________________________
City Clerk
3 EXHIBIT "A"

ATTORNEY SERVICES
Except as provided elsewhere in this Agreement, ATTORNEY shall provide, in a professional manner, all of the usual, customary and necessary services normally provided by a City Attorney to CITY and Agency Counsel to the Housing Authority and Successor Agency, as those services are required. The scope of services to be provided shall include the following:

1. Attendance at City Council meetings;

2. Attendance at Housing Authority and Successor Agency board meetings;

3. Attendance at Planning Commission, departmental meetings, staff meetings or Committee meetings deemed necessary and appropriate, or as requested by the City Manager or the City Council;

4. Research, preparation or review of all written opinions, Ordinances, Resolutions, Agreements, Leases, public works Contracts, and other documents of a legal nature necessary or requested by the City Manager or the City Council;

5. Provision of all legal advice on behalf of CITY to City Council members, City Manager, Board members, Planning Commissioners, department heads and other designated personnel as appropriate;

6. Commencement and prosecution of all code enforcement actions necessary and appropriate to enforce municipal Ordinances, including, but not limited to, enforcement through administrative proceedings;

7. Monitoring and advising the city council, Agency Boards, Planning Commission and staff of legislation and case law affecting CITY;

8. Representing the City Council, Agency Boards and Planning Commission in the administration of all claims and litigation filed by or against the City; provided, however, that Special Counsel may be retained to defend or prosecute actions requiring special expertise; further provided that outside counsel shall be retained in the event of a conflict of interest which disqualified ATTORNEY from such representation;

9. Rendering advice and assistance to CITY's representatives on labor relations matters, reviewing Memoranda of Understanding or other labor agreements, drafting implementing legislation or other pertinent documents and representation of CITY before mediators or arbitrators on matters arising from Memoranda of Understanding or the CITY's Personnel Rules;

10. Rendering advice and assistance in the administration of CITY's general liability risk management and insurance programs;

11. Monitoring activities of any Special Counsel retained by CITY; and

12. Providing conflict of interest assistance to City Council, Planning Commission and Redevelopment Agency members and assisting members and staff in seeking advice, if warranted, from the Fair Political Practices Commission. 4 EXHIBIT "B"

FEE SCHEDULE
January 1, 2022

ATTORNEY ' S CURRENT STANDARD HOURLY RATE FOR LOMA LINDA MATTERS IS $175.00 PER HOUR.
(ATTORNEY’S CURRENT STANDARD HOURLY RATE FOR ALL OTHER CIVIL MATTERS IS $400.00 PER HOUR.)
1 AMENDMENT TO AGREEMENT FOR LEGAL SERVICES
THIS AGREEMENT is made effective as of January 9, 2024 by and between the CITY OF LOMA LINDA, a public entity, the CITY OF LOMA LINDA HOUSING AUTHORITY, and the CITY OF LOMA LINDA SUCCESSOR AGENCY (hereinafter collectively “CITY”), and DIANE EVANS ROBBINS, of the firm ROBBINS AND HOLDAWAY, A PROFESSIONAL CORPORATION, attorneys at law (hereinafter "ATTORNEY").

WITNESSETH:

WHEREAS, CITY and ATTORNEY entered into an Agreement effective as of January 1, 2022 (“the Agreement”);
WHEREAS, CITY and ATTORNEY entered into an Addendum to the Agreement as of February 1, 2022, recognizing that attorney Mark J. Huebsch had joined ATTORNEY’S firm as of February 1, 2022;
WHEREAS, the hourly rate of ATTORNEY for legal services has been at $175.00 per hour since July 1, 2005; and
WHEREAS, ATTORNEY desires to increase the hourly rate for legal services; NOW, THEREFORE, BE IT MUTUALLY AGREED as follows:

1. That the hourly rate of ATTORNEY be increased as follows:
a. To $200.00 per hour effective March 1, 2024;
b. To $225.00 per hour effective September 1, 2024; and c. To $250.00 per hour effective March 1, 2025.

2. All other provisions of the Agreement dated January 1, 2022, and of the Addendum to the Agreement dated February 1, 2022, shall remain in full force and effect.

IN WITNESS WHEREOF, this Agreement has been executed on this _______ day of ________________, 2024 at Loma Linda, California.

CITY OF LOMA LINDA
Mayor
2 Attest:
______________________________
City Clerk

CITY OF LOMA LINDA SUCCESSOR AGENCY
Chairman

CITY OF LOMA LINDA HOUSING AUTHORITY
Chairman
ATTORNEY:

Diane Evans Robbins
ROBBINS AND HOLDAWAY, A Professional Corporation
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Fiscal Year 2023/2024 Supplemental Appropriations for Public Works Department [Public Works] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3H
To
City Council
From
T Jarb Thaipejr, City Manager
Approved/Continued/Denied by City Council
Date:

RECOMMENDATION:

It is recommended that the City Council approve an increase to appropriations for $464,800, as presented and summarized by funds in Attachment I.

BACKGROUND:

N/A
ANALYSIS:

The Public Works Department has analyzed its year-to-date expenditures and determined that supplemental appropriations are needed to cover expenses for the remainder of the year. The changes proposed are detailed in the attached summary for the general fund, sewer, and water enterprise funds. The majority of the requests in the general fund are due to increases in contract pricing for janitorial and landscape maintenance contracts, as well as the increased pricing for utilities and several street light knockdowns due to traffic collisions. The Traffic Safety Department will also need to replace two Clary Battery Back-Up Systems, as well as purchase and install seven new street light poles. The greater part of the requests for the sewer and water enterprise funds are due the the increased costs of utilities, overtime costs for water production and distribution, and the need to replace eight gate valves before June 30, 2024.

ENVIRONMENTAL IMPACT:

N/A
FINANCIAL IMPACT:

Supplemental appropriations from the general fund balance of $188,900; $18,700 from the sewer enterprise fund balance; and $257,200 from the water enterprise fund balance, per the attached account summary.

Attachments
Attachment I.pdf
General Fund

INCREASE
0011200-51120 Utilities $ 1,500.00 Utility expenses for remainder of year 0011200-51410 Repairs & Maint. Vehicles $ 400.00 Cover expenses for remainder of year 0011200-51830 Contractual Agreements $ 1,100.00 Additional Personnel Insurance Program City Manager $ 3,000.00
0011940-51520 Membership, Dues & Subscript. $ 4,100.00 Cover increase in SBCTA & SCAG membership fees General Government
0013030-51120 Utilities $ 700.00 Utility expenses for remainder of year 0013030-51300 Repairs & Maint - Cap Facilities $ 22,000.00 Cover expenses for traffic signal repairs 0013030-51670 Small tools $ 1,200.00 Cover expenses for remainder of year 0013030-51830 Contractual Agreements $ 200.00 Janitorial contract increase 0013030-58220 Machinery & Equipment $ 20,000.00 Two new Clary Battery Backup Systems & (12 Batteries) 0013030-58220 Machinery & Equipment $ 30,000.00 7 poles for Anderson x Academy & Mtn. View Traffic Safety $ 74,100.00
0013100-51120 Utilities $ 400.00 Utility expenses for remainder of year Engineering
0013200-51300 Repairs & Maint - Cap Facilities $ 20,000.00 Cover expenses for remainder of year 0013200-51410 Repairs & Maint. Vehicles $ 4,000.00 Cover expenses for remainder of year 0013200-51620 Uniforms - Safety Equipment $ 1,000.00 Cover expenses for remainder of year 0013200-51670 Small Tools $ 2,000.00 Cover expenses for remainder of year 0013200-51630 Motor fuels & lubricants $ 2,200.00 Fuel costs for remainder of year 0013200-51830 Contractual Agreements $ 5,500.00 Landscape maintenance contract increases 0013200-51870 Materials & other svcs $ 200.00 Misc. services for remainder of year Streets $ 34,900.00
0013400-51120 Utilities $ 26,400.00 Utility expenses for remainder of year 0013400-51830 Contractual Agreements $ 6,500.00
Facilities $ 32,900.00
0014200-51110 Utilities Phone $ 900.00 Increase in cellular service due to new park security cameras 0014200-51120 Utilities $ 10,700.00 Utility expenses for remainder of year 0014200-51300 Repairs & Maint. Cap. Facilities $ 17,000.00 Cover expenses for remainder of year 0014200-51420 Repairs & Maint - General $ 4,000.00 Cover repairs to misc. equipment for remainder of year 0014200-51620 Uniforms - Safety Equipment $ 1,000.00 Cover expenses for remainder of year 0014200-51670 Small Tools $ 2,800.00 Cover expenses for remainder of year 0014200-51830 Contractual Agreements $ 700.00 Janitorial contract increase Parks $ 37,100.00
0014400-51830 Contractual Agreements $ 100.00 Janitorial contract increase Fleet Maintenance
0015500-51830 Contractual Agreements $ 2,300.00 Janitorial & pest control contract increase Senior Center
Total General Fund $ 188,900.00
Sewer
4053500-51120 Utilities $ 4,200.00 Utility costs for remainder of year 4053500-51410 Repair/Main. Vehicles $ 4,000.00 Cover expenses for remainder of year 4053500-51520 Membership/Dues/Subscrip. $ 800.00 San Bern. Co. Western Region Item Bank 4053500-51550 Software Licenses $ 5,100.00 WIN 911-CCS & AVEVA License for SCADA 4053500-51620 Uniforms & Safety Equip. $ 800.00 Sanitizer, safety vests, gloves & goggles 4053500-51630 Fuel $ 700.00 Cover expenses for remainder of year 4053500-51810 Travel, meetings & training $ 1,000.00 Training & seminars for certifications 4053500-51830 Contractual Services $ 2,100.00 Increase janitorial svcs contract Total Sewer Fund $ 18,700.00
Public Works Supplemental Appropriations
Janitorial & Pest Control contract increases
Attachment I
Water
4657000-51520 Membership/Dues/Subscrip. $ 800.00 San Bern. Co. Western Region Item Bank 4657000-51630 Fuel $ 2,800.00 Fuel costs for on-call vehicle 4657000-51830 Contractual Agreements $ 2,500.00 Janitorial contract increase Water Administration $ 6,100.00
4657010-50110 Salaries/Overtime $ 20,900.00 Cover OT costs for remainder of year 4657010-51120 Utilities $ 171,900.00 Utilities for the remainder of year 4657010-51550 Software Licenses $ 1,500.00 WIN 911-CCS & AVEVA License for SCADA 4657010-51610 Uniforms $ 1,200.00 Uniform allowance for two employees 4657010-51670 Small Tools $ 3,000.00 Small refrigerator for water samples 4657010-51830 Contractual Agreements $ 500.00 Vegetation control at well sites Water Production $ 199,000.00
4657020-50110 Salaries - OT $ 16,000.00 Cover OT costs for remainder of year 4657020-51110 Utilities Phone $ 300.00 Cover expenses for remainder of year 4657020-51300 Repairs & Maint. Facilities $ 23,400.00 Replacement of 8 gate valves 4657020-51310 Repairs & Maint. Buildings $ 1,000.00 Office upgrades - Paint, flooring, etc. 4657020-51410 Repair/Main. Vehicles $ 6,500.00 Cover expenses for remainder of year 4657020-51420 Repair/Main. General $ 2,000.00 Cover expenses for remainder of year 4657020-51670 Small Tools $ 1,700.00 Geophone leak detector, angle grinder & welding system Water Distribution $ 50,900.00
4657030-51830 Contractual Agreements $ 1,200.00 Master Meter contract increase Water Meters
Total Water Fund $ 257,200.00
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Authorize Purchase of Two Traffic Signal Backup Battery Systems [Public Works] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3I
To
City Council
From
T Jarb Thaipejr, City Manager
Via
Jeff Peterson, Associate Engineer
Attachments
BBS 2024.pdf
Approved/Continued/Denied by City Council
Date:

RECOMMENDATION:

It is recommended that City Council authorize the purchase of two (2) Clary SP1250 traffic signal battery backup systems, including installation, for a total of $18,820.91.

BACKGROUND:

The annual traffic signal inspection program revealed the need for backup battery system (BBS) replacements at two locations. Unfortunately, these non-working systems have become obsolete and unrepairable. The existing traffic signal cabinets will be re-used.

ANALYSIS:

The BBS at both Anderson Street and Stewart Street and at Barton Road and Mountain View Avenue have failed. A quote to supply and install new systems was requested from our traffic signal maintenance vendor St. Francis Electric. The vendor has provided a quote of $18,820.91 for the work which is inline with past and similar work.

ENVIRONMENTAL IMPACT:

N/A
FINANCIAL IMPACT:

Approval of the previous mid-year adjustment appropriation item will allow for funding to be available in account no. 0013030-58220.

Attachment

City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Notice of Completion - Pavement Rehabilitation by Overlay Method (CIP 23-115) [Public Works] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3J
To
City Council
From
T Jarb Thaipejr, City Manager
Via
Julia Loeffert, Executive Assistant
Approved/Continued/Denied by City Council
Date:

RECOMMENDATION:

It is recommended that the City Council accept this project as substantially complete and authorize the City Clerk to file the Notice of Completion.

BACKGROUND:

On August 8, 2023, the City Council awarded the contract to All American Asphalt of Corona, CA for an amount of $1,473,363.00 with an approved contingency of $147,000. The final project cost was $1,501,202.94. The supplemental contract cost was within the approved contingency allocation and was due to additional materials required due to unanticipated field conditions and extra requirements by Cal Trans. The contractor performed professionally and completed the work satisfactorily.

Attached is the Notice of Completion for the subject project. Upon City Council authorization, the City Clerk will submit the Notice of Completion for recordation. The one (1) year warranty provided by the contractor will commence from the date of recordation.

ANALYSIS:

N/A
ENVIRONMENTAL IMPACT:

N/A
FINANCIAL IMPACT:

Funding for this project was budgeted in 1265340-58500 and 1077300-58500.

Attachments
NOC Pav rehab by overlay CIP 23-115.pdf

LYNETTE ARREOLA
RECORDING REQUESTED BY:

AND
WHEN RECORDED MAIL TO:

LYNETTE ARREOLA

CITY CLERK

CITY OF LOMA LINDA
25541 BARTON ROAD
LOMA LINDA CA 92354
APN# n/a SPACE ABOVE THIS LINE FOR RECORDER’S USE
EXEMPT FROM FILING FEES, GOVERNMENT CODE SECTION 6103

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is OWNER or agent of the OWNER of the interest or estate stated below in the property hereinafter described:

2. The FULL NAME of the OWNER is City of Loma Linda

3. The FULL ADDRESS of the OWNER is 25541 Barton Road, Loma Linda, CA 92354

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In fee. (If other than fee, strike “in fee” and insert, for example “purchaser under contract of purchase” or “lessee.”)

5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, WHO HOLD SUCH INTEREST or ESTATE with the undersigned as JOINT TENANTS or as TENANTS IN COMMON are:

Names Addresses

6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

7. A work of improvement on the property hereinafter described was COMPLETED November 12, 2023

8. The work of improvement completed is described as follows: Pavement Rehabilitation at various locations by overlay method (CIP 23-115)

9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is All American Asphalt of Corona, CA

10. The street address of said property is: Various streets within City of Loma Linda limits

11. The property on which said work of improvement was completed is in the City of Loma Linda County of San Bernardino , State of California, and is described as follows:

Pavement Rehabilitation at various locations by overlay method (CIP 23-115) Signature of Owner or Agent Owner Date: January 11, 2023 Lynette Arreola, City Clerk
Verification of INDIVIDUAL owner : I, the
undersigned, declare under penalty of perjury under the laws of the State of California that I am the owner of the aforesaid interest or estate in the property described in the above notice; that I have read said notice, that I know and understand the contends thereof, and that the facts stated therein are true and correct.

Date and Place (Signature of owner named in paragraph 2) Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Clerk of the aforesaid interest or “PRESIDENT, PARTNER, MANAGER, AGENT, ETC.”
in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place (Signature of person signing on behalf of owner) Lynette Arreola, City Clerk
I:\Public Works Admin\Staff Reports\Notice of Completion\NOC Pav rehab by overlay CIP 23-115.doc

City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Water and Wastewater Rate Study Draft Report [Public Works/Finance] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3K
To
City Council
From
T Jarb Thaipejr, City Manager
Approved/Continued/Denied by City Council
Date:

RECOMMENDATION:

It is recommended that the City Council accept the Water and Wastewater Rate Study and its findings and authorize staff to proceed with the notification and hearing process.

BACKGROUND:

Approximately every five (5) years the City causes an updated water and sewer rate study to be prepared for consideration.

The purpose is to provide the nexus for rate adjustments as needed over the following period.

ANALYSIS:

At the December 12, 2023, City Council Meeting, Tuckfield and Associates of Newport Beach, CA, presented the study and their findings of the Water and Wastewater Rate Study. The final draft has been submitted tonight for Council's review. The next step will be a citywide notification per Prop. 218 to property owners and to hold the public hearings.

ENVIRONMENTAL IMPACT:

N/A
FINANCIAL IMPACT:

None at this time.

Attachments
Water and Wastewater Rate Study Final Report 1-4-2024.pdf Submitted By:

Tuckfield & Associates
Contact: Mr. G. Clayton Tuckfield
2549 Eastbluff Dr, #450B
Newport Beach, CA 92660
(949) 760-9454
www.tuckfieldassociates.com
January 2024
Report For:

City of Loma Linda
25541 Barton Road
Loma Linda, CA 92354
(909) 799-2811
Report on
Water and Wastewater
Rate Study
[This Page Intentionally Left Blank for Two-sided Printing] Tuckfield & Associates
2549 Eastbluff Drive, Suite 450B, Newport Beach, CA 92660 Phone (949) 760-9454 Fax (949) 760-2725
Email [email protected]
January 4, 2024
Mr. Jarb Thaipejr
City Manager
City of Loma Linda
25541 Barton Road
Loma Linda, CA 92354
Dear Mr. Thaipejr:

I am pleased to present this Water and Wastewater Rate Study (Study) report for the City of Loma Linda (City).

The water and wastewater rates presented in this report have been developed based on cost of service principles following industry methods. The rates are fair and equitable for the users of the water and wastewater systems and have been established in accordance with Proposition 218.

This study included a review and analysis of the water and wastewater enterprise revenue and revenue requirements, number of customers, volumes, and current rate structure. The major objectives of the Study include the following.
 Generate positive levels of income in the Study period  Maintain operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement spending from enterprise rate revenue This report documents the findings and recommendations for the financial plans and rates for the City’s water and wastewater enterprises. Tables and figures are provided throughout the report to demonstrate the calculations.

It has been a pleasure to work with City staff during the performance of this study. If there are any questions, please contact me at (949) 760-9454.

Very Truly Yours,

TUCKFIELD & ASSOCIATES

G. Clayton Tuckfield
Principal Consultant
[This Page Intentionally Left Blank for Two-sided Printing] Water and Wastewater Rate Study
City of Loma Linda
Table of Contents
Page
Executive Summary ............................................................................................... 1 Water Financial Plan ....................................................................................................................................... 1 Current Water Rates ....................................................................................................................................... 1 Proposed Water Rate Structure and Rates..................................................................................................... 2 Water Bill Impacts ........................................................................................................................................... 2 Wastewater Financial Plan .............................................................................................................................. 4 Current Wastewater Rates .............................................................................................................................. 4 Proposed Wastewater Rate Structure and Rates ........................................................................................... 4 Wastewater Bill Impacts .................................................................................................................................. 5 Introduction ............................................................................................................. 7 Background ..................................................................................................................................................... 7 Objectives ........................................................................................................................................................ 7 Scope of Study ................................................................................................................................................ 8 Assumptions ........................................................................................................... 8 City Reserve Policy ......................................................................................................................................... 9 City Beginning Balances and Reserve Targets .............................................................................................. 9 Water Financial Planning ..................................................................................... 10 Current Water Fixed and Variable Charges .................................................................................................. 10 Water User Classifications ............................................................................................................................ 11 Number of Customers............................................................................................................................ 11 Number of Water Meters ....................................................................................................................... 11 Water Financial Plan ..................................................................................................................................... 12 Revenues ............................................................................................................................................... 12 Revenue Requirements ......................................................................................................................... 13 Operation and Maintenance Expense ............................................................................................ 13 Annual Replacement Transfer ....................................................................................................... 14 Annual Debt Service....................................................................................................................... 14 Water Capital Improvement Program .................................................................................................... 14 Water Financial Plan .............................................................................................................................. 15 Proposed Revenue Adjustments.................................................................................................... 15 Cost of Service ..................................................................................................... 17 Industry Methodology .................................................................................................................................... 17 Costs of Service to be Allocated ................................................................................................................... 17 Water and Wastewater Rate Study
City of Loma Linda
Table of Contents (continued)
Page
Water Rate Design ................................................................................................ 18 Proposed Rate Structure ............................................................................................................................... 18 Proposed Fixed Charges ..................................................................................................................... 18 Private Fire Protection Charges ..................................................................................................... 20 Proposed Variable Charges ................................................................................................................. 21 Tier Definitions................................................................................................................................ 21 Delivery Costs ................................................................................................................................ 21 Peaking Costs ................................................................................................................................ 22 Water Supply .................................................................................................................................. 22 Proposed Water Rates .................................................................................................................................. 24 Water Bill Impact Analysis ................................................................................... 25 Water Rate Survey ................................................................................................ 25 Wastewater Financial Planning ........................................................................... 27 Current Wastewater Rates ............................................................................................................................ 27 Wastewater User Classifications ................................................................................................................... 28 Number of Customers............................................................................................................................ 28 Wastewater Financial Plan ............................................................................................................................ 28 Revenues ............................................................................................................................................... 29 Revenue Requirements ......................................................................................................................... 30 Operation and Maintenance Expense ............................................................................................ 30 Capital Improvement Funding ........................................................................................................ 30 Advances Repayment .................................................................................................................... 30 Wastewater Capital Improvement Program........................................................................................... 31 Wastewater Financial Plan .................................................................................................................... 31 Proposed Revenue Adjustments.................................................................................................... 31 Wastewater Rate Survey ...................................................................................... 33 List of Tables
Table ES-1 Proposed Water Fixed and Variable Charges ................................................................................ 2 Table ES-2 Comparison of Current Single-family Residential Bi-monthly Water Bill with ¾-inch Meter Size With Proposed Bill Using May 2024 Water Rates ......................................................................... 3 Table ES-3 Proposed Wastewater Monthly Fixed and Variable Charges ........................................................ 5 Water and Wastewater Rate Study
City of Loma Linda
Table of Contents (continued)
Page
Table 1 Assumptions and Planning Factors ................................................................................................ 8 Table 2 June 30, 2018 Estimated Beginning Cash Balances and Reserve Targets .................................. 9 Table 3 Current Water Rates .................................................................................................................... 10 Table 4 Historical and Projected Water Customers by Classification ....................................................... 11 Table 5 Projected Number of Water Meters by Size ................................................................................. 12 Table 6 Projected Rate-based Water Revenue Using Existing Rates ...................................................... 13 Table 7 Projected Water Miscellaneous Revenue .................................................................................... 13 Table 8 Budget and Projected Water Operation and Maintenance Expense ........................................... 14 Table 9 Water Capital Improvement Program ........................................................................................... 15 Table 10 Water Financial Plan .................................................................................................................... 16 Table 11 Allocation of Water Revenue Requirements to Cost Component ................................................ 18 Table 12 Design of Water Fixed Charges ................................................................................................... 19 Table 13 Design of Water Fixed Charges by Meter Size ............................................................................ 19 Table 14 Proposed Water Fixed Charges by Meter Size ............................................................................ 20 Table 15 Design of Private Fire Protection Charges ................................................................................... 20 Table 16 Proposed Bi-monthly Private Fire Protection Charges ................................................................. 21 Table 17 Design of Uniform Volume Rate for Delivery Costs ..................................................................... 22 Table 18 Design of Single-family Residential Peaking Rate ....................................................................... 22 Table 19 Design of Water Supply Costs by Tier ......................................................................................... 23 Table 20 Design of Water Rate Structure ................................................................................................... 23 Table 21 Proposed Water Fixed and Variable Charges .............................................................................. 24 Table 22 Comparison of Current Single-family Residential Bi-monthly Water Bill with 3/4 -inch Meter Size With Proposed Bill Using May 2024 Water Rates ........................................................................ 25 Table 23 Current Wastewater Fixed and Variable Charges........................................................................ 27 Table 24 Historical and Projected Wastewater Customers by Classification .............................................. 28 Table 25 Projected Rate-based Wastewater Revenue Using Current Rates ............................................. 29 Table 26 Projected Wastewater Miscellaneous Revenue ........................................................................... 29 Table 27 Projected Wastewater Operation and Maintenance Expense ..................................................... 30 Table 28 Wastewater Capital Improvement Program ................................................................................. 31 Table 29 Wastewater Financial Plan ........................................................................................................... 32 List of Charts
Chart ES-1 Single-family Residential Bi-monthly Water Bills with ¾-inch Meter Using 37 HCF ....................... 3 Chart ES-2 Single-family Residential Bi-monthly Wastewater Bills .................................................................. 6 Water and Wastewater Rate Study
City of Loma Linda
Table of Contents (continued)
Page
Chart 1 Single-family Residential Bi-monthly Water Bills Using 35 HCF .................................................. 26 Chart 2 Single-family Residential Bi-monthly Wastewater Bills ................................................................ 33 Appendix
Appendix A Allocation of Water Revenue Requirements to Cost Component ................................................ 35 Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 1
Executive Summary
The City of Loma Linda (City) engaged Tuckfield & Associates to conduct a comprehensive Water and Wastewater Rate Study (Study) for its water and wastewater enterprise systems. The major objectives of the Study were to develop forward-looking financial plans of revenues and revenue requirements for each system, perform analyses to determine the costs of providing service, and design new water and wastewater rates and charges for implementation.

Water Financial Plan
The revenue and revenue requirements of the water system were identified and projected to create a forward looking financial plan for the water enterprise. Annual costs of the water system include operation and maintenance expense (O&M), capital improvement funding, and debt service. Projected O&M expenses of the financial plan include the City’s FY 2023-24 budget expenses for the first year of the financial plan, with future O&M expenses being projected through application of inflation factors to budget year expenses.

The City has prepared a five-year Capital Improvement Program (CIP) that includes replacements and other capital improvements. The majority of the CIP includes spending on various structures, improvements, and equipment including the South Hills 1.6 MG Reservoir, waterline replacements, and meter replacements. The construction costs of the CIP total about $6.3M over the period FY 2023-24 to FY 2027-28. The CIP is expected to be financed through water revenues, development impact fees, and capital reserves.

An analysis was performed that compared the projected revenue using the City’s current water rates with the projected revenue requirements (costs) of the water system. The analysis indicated that the current level of revenue being received is not sufficient to meet future obligations and needs to be increased by approximately

4.0 percent on May 1, 2024 and on each January 1 for the remaining years of the Study period. Revenue increases are recommended to adequately meet future obligations, debt coverage requirements, and other financial planning criteria. The water financial plan is presented in Table 10.

Current Water Rates
The current water rates consist of fixed charges by meter size and variable charges for water consumption. Singlefamily Residential (SFR) customers have a tiered variable rate structure for blocks of water consumption while all other customers have a uniform variable charge. Table ES-1 provides the current water rates charged to water customers of the City.

Proposed Water Rate Structure and Rates
The proposed rate structure for the City maintains the current rate structure in place. The proposed water rate structure keeps the fixed charge structure by meter size and maintains the consumption tiered structure for SFR Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 2
customers and uniform volume rates for all other customers. A discussion of the proposed rate structure is provided on page 18. Table ES-1 presents the water rates for May 1, 2024 and for future years.

Water Bill Impacts
Table ES-2 presents the impacts to SFR bills from the implementation of the proposed May 1, 2024 water rates.

For a SFR customer with a 3/4-inch meter using the average consumption of 35 hundred cubic feet (HCF) bimonthly, the bill will increase from $120.11 to $129.90, an increase of $9.79, or 8.2 percent. The 8.2 percent increase is higher than the overall 4.0 percent revenue increase required due to cost of service rate changes in this first year.

Table ES-1
Proposed Water Fixed and Variable Charges
Current May 1, January 1, January 1, January 1, January 1, Rate FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Meter Size Fixed Charge ($ per bi-month)
3/4" $39.15 $41.82 $43.49 $45.23 $47.04 $48.92
1" $54.47 $57.54 $59.84 $62.23 $64.72 $67.31

1.5" $2.96 $3.08 $3.21 $3.21 $3.21 $3.21
2" $6.31 $6.57 $6.83 $6.83 $6.83 $6.83

2.5" $25.55 $11.81 $12.29 $12.29 $12.29 $12.29
3" $39.06 $19.08 $19.85 $19.85 $19.85 $19.85
4" $113.47 $40.66 $42.29 $42.29 $42.29 $42.29
6" $241.78 $118.12 $122.85 $122.85 $122.85 $122.85
8" $434.82 $251.72 $261.79 $261.79 $261.79 $261.79
10" $702.35 $452.68 $470.79 $470.79 $470.79 $470.79
Variable Charge ($ per HCF)
Single-family Residential
Tier 1 - 0 to 18 HCF $1.91 $2.23 $2.32 $2.41 $2.51 $2.61 Tier 2 - 18 to 50 HCF $2.74 $2.82 $2.93 $3.05 $3.17 $3.30 Tier 3 - Over 50 HCF $3.87 $3.95 $4.11 $4.27 $4.44 $4.62 Multiunit Residential $2.11 $2.23 $2.32 $2.41 $2.51 $2.61 Commercial $2.75 $2.79 $2.90 $3.02 $3.14 $3.27
Irrigation $3.02 $3.13 $3.25 $3.38 $3.52 $3.66
Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 3
Chart ES-1 has been prepared to compare the City’s average SFR water bill with those of other communities at the same consumption. The chart indicates that with the proposed May 2024 rates, a SFR customer with a monthly consumption of 35 HCF will experience a bill that is in the mid to upper range of the communities listed.

Table ES-2
Comparison of Current Single-family Residential Bi-monthly Water Bill with 3/4 -inch Meter Size with Proposed Bill Using May 2024 Water Rates
Current Bill Proposed FY 23-24 Bill
Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $39.15 $0.00 $39.15 $41.82 $0.00 $41.82 $2.67 6.8%
Very Low 5 $39.15 $9.55 $48.70 $41.82 $11.15 $52.97 $4.27 8.8% Low 10 $39.15 $19.10 $58.25 $41.82 $22.30 $64.12 $5.87 10.1% Median 24 $39.15 $50.82 $89.97 $41.82 $57.06 $98.88 $8.91 9.9% Average 35 $39.15 $80.96 $120.11 $41.82 $88.08 $129.90 $9.79 8.2% 50 $39.15 $122.06 $161.21 $41.82 $130.38 $172.20 $10.99 6.8% High 60 $39.15 $160.76 $199.91 $41.82 $169.88 $211.70 $11.79 5.9% 75 $39.15 $218.81 $257.96 $41.82 $229.13 $270.95 $12.99 5.0% Very High 100 $39.15 $315.56 $354.71 $41.82 $327.88 $369.70 $14.99 4.2% Chart ES-1
Single-family Residential Bi-monthly Water Bills with 3/4-inch Meter Using 37 HCF For Rates in Effect November 2023
Note: Above table uses water rates in effect November 2023. City’s May 2024 bill is based on the rate structure and rates in Table ES-1.
$0 $20 $40 $60 $80 $100 $120 $140 $160
East Valley Water District
Loma Linda May 1, 2024 Bill
West Valley Water District
Current Loma Linda Bill
City of SB Muni Water Dept.

City of Colton
City of Redlands
Yucaipa Valley Water District
Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 4
Wastewater Financial Plan
The revenue and revenue requirements of the wastewater system were identified and projected to create a forward-looking financial plan of the wastewater enterprise. Annual costs include operation and maintenance expense (O&M), San Bernardino wastewater treatment expense, capital improvement funding, and repayment of advances from the Water Fund to the Sewer Fund. Projected O&M expenses include the City’s FY 2023-24 Budget expenses for the first year of the financial plan, with future expenses projected through application of inflation factors to budget year expenses. San Bernardino wastewater treatment expenses are offset by charges from the City of San Bernardino to Loma Linda customers. Revenues collected from these charges are remitted to the City of San Bernardino.

The City has prepared a five-year capital improvement program (CIP) spending plan for the wastewater system.

Major projects of the CIP include Juanita Street Sewer Pump Station, sewer line casing, and sewer line replacements. The CIP expenditures total about $713,000 for the period FY 2023-24 to FY 2027-28. The CIP is planned to be funded through the sewer revenues and capital reserves.

The wastewater system currently does not have any outstanding debt. However, in the recent past the Sewer Fund borrowed funds from the Water Fund, and the wastewater financial plan includes repayment of those funds over a five-year period. Payments to the Water Fund are included at $500,000 in FY 23-24 with $165,600 paid annually for four years.

An analysis was performed that compared the projected revenue using the City’s current wastewater rates with the projected revenue requirements (costs) of the wastewater system. The analysis indicated that the current level of revenue being received is sufficient to meet revenue requirements for the Study period. No changes to wastewater rates are proposed in this Study. The wastewater financial plan is presented in Table 29.

Current Wastewater Rates
The current wastewater rates consist of fixed charges for all customers and a variable charge based on water consumption for Non-residential customers. Residential customers are charged a bi-monthly flat charge per billing cycle. Non-residential customers are charged a bi-monthly fixed charge and a variable charge based on water consumption depending on the rate classification. Table ES-3 provides the current wastewater charges by customer classification.

Proposed Wastewater Rate Structure and Rates
The proposed wastewater rates are the same as the current rates. Residential customers are charged a fixed charge per bi-month. Non-residential customer charges include a bi-monthly fixed charge and a variable rate for water consumption. Charges related to treatment of the City’s wastewater is recovered in the San Bernardino charges to City’s customers and are not included in the City’s wastewater rates in this Study. Table ES-3 presents the proposed wastewater rates for the next five years.

Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 5
Wastewater Bill Impacts
There is no impact to wastewater bills from the City’s proposed rates. For a SFR customer, the wastewater bill remains at $38.47 bi-monthly for the Study period. Chart ES-2 has been prepared to compare the City’s SFR wastewater bill with those of other communities. The City’s bill includes the City of San Bernardino treatment charge. The chart indicates that the City’s SFR wastewater bill is in the mid-range of the communities listed.

Table ES-3
Proposed Wastewater Fixed and Variable Charges
Classification Jan 1, 2023
$/bi-month
Residential $38.47
Commercial $8.57
Classification Jan 1, 2023
$/HCF
Class I: MHP (>=4 units) $1.58
Class II: Catergory a 1.98
Class II: Catergory b 1.84
Class III: Auto Service 2.00
Class IV: Laundry, Mortuary 2.11
Class V: Restaurant 2.11
Class VI $1.89
Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 6
Chart ES-2
Single-family Residential Bi-monthly Wastewater Bills
For Rates in Effect November 2023
Note: Above table uses wastewater rates in effect November 2023. City’s May 2024 bill is based on the rate structure and rates in Table ES-3 and includes the San Bernardino Treatment charge. $0 $20 $40 $60 $80 $100 $120 $140
West Valley Sanitation District
Yucaipa Valley Water District
City of SB
Loma Linda Current Bill
East Valley Water District
City of Colton
City of Redlands
Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 7
Introduction
The City of Loma Linda (City) engaged Tuckfield & Associates to conduct a comprehensive Water and Wastewater Rate Study (Study) for its water and wastewater enterprise systems. The major objectives of the Study are to develop forward-looking financial plans for each enterprise, perform analyses to determine the cost of providing service, and design new water and wastewater rates and charges for implementation.

Background
The City of Loma Linda is an incorporated City located in San Bernardino County in the San Bernardino-Ontario Metropolitan area. The City was formed in 1970 and provides water and wastewater service to a population of over 25,200 in a service area of approximately 7.5 square miles. The City’s customer base consists primarily of residential customers with additional commercial, retail, and public facility customers. Loma Linda University and the Loma Linda University Medical Center are within the City’s service area; however, water service is provided by their own water production and distribution system while wastewater collection is provided to these facilities by the City. The City’s water and wastewater service is identified in separate enterprise funds of the City.

The City obtains its water supply from groundwater, replenishment water, and imported water. Groundwater is pumped from the San Bernardino Basin Area (SBBA) from six wells. The City purchases replenishment water that is injected into the basin to maintain safe yield and the health of the basin. A small amount of water is imported from the San Bernardino Valley Municipal Water District (SBVMWD). Water is delivered through a distribution system consisting of pump stations, storage tanks, pressure reducing valves, and water pipelines.

The City’s wastewater is collected through a system of sewer gravity mains and several lift stations. Wastewater treatment service is provided by the City of San Bernardino at the San Bernardino Water Reclamation Plant treatment plant that provides secondary treatment.

Objectives
The objectives of this Study are to (1) review the current and future financial status of each of the water and wastewater enterprises, (2) make any adjustments to the revenue being received to ensure that the financial obligations are being met now and in the future, including adequate reserves and debt service coverage, and (3) design water and wastewater rates that generate the required revenue while being fair and equitable for its customers. Additionally, the Study also sought to provide the following.  Revenue sufficiency to fund operating and capital needs  Appropriate levels of operating and capital reserves
 Cost of service allocations following appropriate standards, regulations, and guidelines  Rates that are consistent with industry practice
 Rates that are easy to understand and administrate
Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 8
Scope of the Study
This Study includes the findings and recommendations of analyzing each of the water and wastewater enterprise’s financial status. Historical trends were analyzed from data supplied by the City showing the number of customers, volumes, revenue, and revenue requirements.

Revenue requirements of each enterprise include operation and maintenance expenses, routine capital outlays, replacement transfers, debt service, and additions to reserves. Changing conditions such as additional facilities, system growth, employee staffing levels, and non-recurring maintenance expenditures are recognized. Inflation for ongoing expenditures is included to reflect cost escalation.

The financial plan and rates developed herein are based on funding of the capital improvement plan as stated as well as estimates of operation and maintenance expenses developed from information provided by the City.

Deviation from the financial plans, construction cost estimates and funding requirements, major operational changes, or other financial policy changes that were not foreseen, may result in the need for lower or higher revenue than anticipated. It is suggested that the City conduct an update to the rate study at least every five years for prudent rate planning.

Assumptions
Several assumptions were used to conduct the Study for the period FY 2023-24 to FY 2027-28. The assumptions included growth rates in customer accounts and annual consumption, interest earnings on reserve balances, and expense inflation factors used for making projections. The financial planning assumptions are provided below in Table 1.

Table 1
Assumptions and Planning Factors
Description Value
Annual Account & Demand growth [1]
Residential 0.5%
All Other 0.0%
Interest earnings on fund reserves (annual) 2.5%
Cost Escalation
Personnel Services [2] 4.0%
Benefits 8.0%
Electrical Power 3.0%
Chemicals 3.0%
Purchased Water 5.0%
All Other Operations & Maintenance 3.0%
Capital 3.0%
[1] Annualized growth in water accounts is based on future growth information provided by staff.
[2] Personnel Services growth in staffing, promotions, and inflation Water and Wastewater Rate Study  City of Loma Linda
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City Reserve Policy
A reserve policy sets forth goals for maintaining various reserves for water and wastewater operations and capital spending. The reserve policy provides guidelines to maintain the financial health and stability of the enterprise funds, allowing the enterprises to meet unanticipated reductions in revenues, changes in the costs of providing services, fixed asset repair and replacement needs, natural disasters, and other issues.

The City has established various reserve types for the water and wastewater enterprises. The City’s goals for the amount of the reserves to be held are discussed below.

Operating Reserve – The purpose of the Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance and administration of the utility. This reserve ensures that operations can continue should there be significant events that impact cash flow. The target balance to be maintained is 180 days of annual operation and maintenance expenses.

Capital Replacement Reserve – The Capital Replacement Reserve is used to fund future replacement of assets and capital projects. The target balance is equal to 50 percent of annual depreciation expense for both enterprises.

Expansion Reserve – The Expansion Reserve is funds held in an account separate from all other funds. The reserve is accumulated from the collection of capacity charges and may only be spent on capital projects that increase capacity. There is no specific target balance to be maintained for this reserve.

Emergency Reserve – The Emergency Reserve is intended to provide recovery from natural disasters and allow timely repair of capital infrastructure. The target balance to be maintained is equal to 3 percent of fixed asset value.

City Beginning Reserve Balances and Reserve Targets
The reserve balances discussed above are used in developing the financial plans for the water and wastewater utilities. The City’s beginning reserve balances are listed in Table 2 below as of June 30, 2023.

Table 2
June 30, 2023 Estimated Beginning Reserve Balances and Reserve Targets Water Wastewater
Reserve Reserve Reserve Reserve
Reserve Type Balance Target Balance Target
Operating Fund Reserve $2,259,300 $3,775,000 $1,618,807 $1,073,000 Capital Replacement Reserve $708,000 $708,000 $163,000 $163,000 Construction/Expansion Fund Reserve $2,916,700 n/a $450,450 n/a Emergency Reserve $998,000 $998,000 $100,000 $100,000
Total $6,882,000 $5,481,000 $2,332,257 $1,336,000
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Target Reserves discussed above are also stated in the table. The financial plans developed in this Study increase and/or maintain the various reserve types such that the goals are achieved over a ten-year planning period.

Water Financial Planning
Financial planning for the water system includes identifying and projecting revenues and revenue requirements for a five-year planning period. Estimates of revenue from various sources are compared with the projected revenue requirements of the water system. This comparison allows the review of the sufficiency of existing revenue to meet annual revenue requirements and provides the basis for any rate adjustments. New water rates and charges are created to recover the City’s annual operating and capital costs associated with the water system.

This financial planning section of the report discusses current water rates, current user classifications, projected revenues and revenue requirements, capital improvement expenditures and financing sources, and proposed revenue adjustments.

Current Water Fixed and Variable Charges
The current water rates consist of fixed and variable charges to residential and non-residential customers. All customers are charged a bi-monthly fixed charge by meter size and are charged for water consumption. SFR customers are charged a three-tier rate structure while all other customers are charged a uniform variable rate structure. Table 3 provides the current water rates of the water enterprise.

Table 3
Current Water Rates
Meter Size
Water
Service
Private Fire
Protection Customer Class/Tier Variable Rate
($/Bi-mo) ($/Bi-mo) ($/HCF)
5/8" $39.15 $0.00 Single-Family
3/4" $39.15 $0.00 Tier 1 - 0 to 18 HCF $1.91
1" $54.47 $0.00 Tier 2 - 19 to 50 HCF $2.74

1.5" $86.44 $0.00 Tier 3 - Over 50 HCF $3.87
2" $136.00 $21.78 Multifamily/Apartments $2.11
3" $361.38 $25.55 Commercial $2.75
4" $504.65 $31.24 Irrigation $3.02
6" $977.44 $41.29
8" $1,517.81 $61.93
10" $2,175.22 $85.55
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Water User Classifications
Number of Customers
The City currently classifies water customers as Single-family, Multifamily/Apartments, Commercial, and Irrigation.

Residential customers account for more than 84 percent of the total customers served by the water system.

Growth in Residential accounts (including single-family and multifamily dwelling units) is projected to occur at a rate of 0.50 percent annually, following the assumptions listed in Table 1. Table 4 provides the historical and projected number of customers by classification.

Number of Water Meters
Table 5 provides a summary of the number of projected meters by size. The majority of customers have 3/4-inch and 1-inch meters installed at the service location. The growth in residential accounts is assumed to occur with 1- inch meters. All new single-family residential construction will have 1-inch meters due to fire code and this is the minimum size for installation for residential customers in the City’s customer base.

Table 4
Historical and Projected Water Customers by Classification Historical Projected
Customer Class FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Number of Accounts
Single Family [1] 4,784 4,808 4,832 4,856 4,880 4,904
Multifamily/Apartments [1] 398 400 402 404 406 408
Commercial 268 268 268 268 268 268
Irrigation 170 170 170 170 170 170
Total Accounts 5,620 5,646 5,672 5,698 5,724 5,750
Fire Protection
Public Fire Protection 873 873 873 873 873 873
Private Fire Protection 90 90 90 90 90 90
Total Fire Protection Accounts 963 963 963 963 963 963
[1] Residential accounts are forecast to increase based on the assumed growth rate of 0.5% annually.

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Water Financial Plan
The financial plan provides the means of analyzing the revenue and revenue requirements of the water system and its impact on reserves as well as the ability to fund on-going operation and maintenance expense and capital infrastructure requirements. Below is a discussion of the projection of revenue, operation and maintenance expenses, capital improvement needs of the water system and its financing, debt service requirements, and revenue adjustments needed to maintain a sustainable water enterprise.

Revenues
The City receives revenue from operating and miscellaneous sources. Operating revenue is received from rates and charges for water service. Revenue from water rates is projected by applying the current water rates to the projected number of accounts and consumption volume. Projected revenues from water service rates are presented in Table 6.

Table 5
Projected Number of Water Meters by Size
Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Active Water Meters/Accounts [1]
3/4" 3,200 3,200 3,200 3,200 3,200
1" 1,936 1,960 1,986 2,010 2,036

1.5" 159 160 160 161 161
2" 303 304 304 305 305
3" 21 21 21 21 21
4" 14 14 14 14 14
6" 8 8 8 8 8
8" 3 3 3 3 3
10" 2 2 2 2 2
Total Accounts 5,646 5,672 5,698 5,724 5,750
[1] Historical water accounts for FY 22-23 were provided through City billing records.

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Miscellaneous revenue is a source of revenue that includes lease income, repayment advances, meter installations, set-up fees, hydrant rental, reimbursements, and other sources. Table 7 presents the projected miscellaneous revenue.

Revenue Requirements
Revenue requirements of the water system include operation and maintenance expense, capital improvement funding, and debt service payments. Each of these items are discussed below.

Operation and Maintenance Expense
Operation and maintenance expenses (O&M) are an on-going obligation of the water system and such costs are normally met from water service revenue. O&M includes the cost to operate and maintain the water supply, Table 6
Projected Rate-based Water Revenue
[1] FY 23-24 and forecast revenue calculated by multiplying current water rates by the number of projected customers. [2] FY 23-24 and forecast revenue calculated by multiplying projected water sales by the current variable rates.

Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Water Service Revenues
Fixed Charges [1] $1,902,380 $1,911,558 $1,920,056 $1,929,234 $1,937,731 Variable Charges [2] 5,399,990 5,417,287 5,434,589 5,451,889 5,469,188 Subtotal Revenues From Current Rates $7,302,370 $7,328,845 $7,354,645 $7,381,123 $7,406,919 Fire Protection Revenues 130,561 130,561 130,561 130,561 130,561 Total Revenues From Current Rates $7,432,931 $7,459,406 $7,485,206 $7,511,684 $7,537,480 Table 7
Projected Water Miscellaneous Revenue
Budget Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Lease Income $70,600 $72,000 $73,400 $74,900 $76,400
Advances Repayment from Sewer Fund 500,000 165,600 165,600 165,600 165,600 Installation - Connection Fees 10,000 26,600 26,600 26,600 26,600 Utility Account Set Up Fee 25,000 25,500 26,000 26,500 27,000 Miscellaneous Services 84,200 85,900 87,600 89,400 91,200 Hydrant Meter Rental 10,000 10,200 10,400 10,600 10,800 Refunds and Reimbursements 440,000 440,000 440,000 440,000 440,000 Miscellaneous Revenue 50,000 5,000 5,000 5,000 5,000
Damage Claim Recoveries 2,000 - - - -
Total Miscellaneous Revenues $1,191,800 $830,800 $834,600 $838,600 $842,600 Water and Wastewater Rate Study  City of Loma Linda
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reservoirs, and distribution system facilities. Costs also include technical services and other general and administrative expenses.

O&M has been projected recognizing the major expense categories of personnel services, electric power expense, chemicals, purchased water, capital outlay, all other expenses following the inflation factors presented in Table 1.

Table 8 provides a summary of the O&M expenses for the Study period.

Capital Improvement Funding
The City pays for water system replacements and capital improvements from the water and water acquisition funds. The City plans for these expenses through its capital improvement planning during the fiscal year. The annual amount necessary to fund the improvements is included in the water financial plan such that revenue from water rates, as well as from reserves, are providing funding to aid in the cost of these replacements and improvements. Any money not spent accumulates into reserves to be used for future capital improvement spending. Project management overhead expenses are also incurred with each project of the CIP.

Annual Debt Service
The City has one outstanding loan on the water system. The 2016 Water Revenue Refunding Bonds issue has annual debt service payments of about $374,000 and will be retired in FY 2036. A new $4.35M loan from the Special Projects Construction Fund is providing funding to construct the 1.6 MG South Hills reservoir. The loan has a variable interest rate and will be repaid when the City receives Development Impact Fees (DIF) into the Water Acquisitions Fund. An estimated loan payment is used in the Study at 4 percent for 30 years and assumes projections of DIF revenue from the projected customer growth are similar in amount to the estimated payments.

Water Capital Improvement Program
The City has developed a water Capital Improvement Program (CIP) provided in Table 9 that lists capital expenditures for FY 2023-24 through FY 2027-28. Over this period the City projects that it will spend approximately $6,300,000. The major improvements include the South Hill Reservoir, waterline replacements, and other replacements and rehabilitations. The CIP is funded through water revenue, capital reserves, and DIFs.

Table 8
Budget and Projected Water Operation and Maintenance Expense Budget Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Operation and Maintenance Expense
Water Administration 1,530,700 1,595,496 1,663,532 1,735,002 1,810,113 Water Production 4,224,200 4,382,807 4,548,052 4,720,249 4,899,741 Water Transmission and Distribution 1,389,500 1,448,923 1,511,359 1,576,993 1,646,013 Water Meters 404,700 396,228 412,463 429,493 447,366
Total Operation and Maintenance Exp 7,549,100 7,823,454 8,135,406 8,461,737 8,803,233 Water and Wastewater Rate Study  City of Loma Linda
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Water Financial Plan
A financial plan has been prepared that includes the revenues and revenue requirements that were identified for the water system and is presented in Table 10. The plan incorporates specific financial planning goals to provide guidance to maintain the health of the water utility on an on-going basis. The goals included the following.
 Generate positive levels of income in each year of the Study period  Maintain the operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement and improvement spending requirements Proposed Revenue Adjustments
Table 10 provides the annual revenue increases recommended to meet the financial planning criteria for the five-year Study period. The financial plan indicates that a 4.0 percent increase is recommended on May 1, 2024 and then for each January for the remainder of the Study period. The increases are necessary to meet the planning criteria discussed above.

Table 9
Water Capital Improvement Program
Budget Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Current Capital Improvement Program (CIP) Projects [1]
Replace water meters $10,000 $5,200 $5,300 $0 $0
Campus St. - Replace water line 150,000 - - - -
South Hill - Install 1.6 MG reservoir 4,500,000 - - - - Mt. View well No. 3 - Rehabilitation 180,000 - - - -
Mt. View Ave. - Install new PRV 100,000 - - - -
Install new 12" waterline, Beaumont Ave 200,000 - - - - Poplar St - Replace 6" with 8" waterline, Shepardson Dr. - 618,000 - - - Prospect Ave.- Replace 6" with 8" waterline , Poplar St. - - 530,500 - - Total Water CIP $5,140,000 $623,200 $535,800 $0 $0
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Table 10
Water Financial Plan
Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Proposed Revenue Increase (May 1) 4.0%
Proposed Revenue Increase (January 1) 4.0% 4.0% 4.0% 4.0% Revenue
Revenues from Existing Water Rates [1] $7,432,931 $7,459,406 $7,485,206 $7,511,684 $7,537,480 Total Additional Water Sales Revenue [2] 24,776 427,672 745,726 1,078,765 1,427,269 Miscellaneous Income 1,191,800 830,800 834,600 838,600 842,600 Interest Income [3] 171,628 168,389 163,774 169,262 183,718 Total Revenues $8,821,135 $8,886,267 $9,229,306 $9,598,311 $9,991,067 Operations
Operation and Maintenance Expense $7,549,100 $7,823,454 $8,135,406 $8,461,737 $8,803,233 Capital Outlay - - - - -
2016 Water Bonds Debt Service 371,756 372,381 367,725 367,788 368,875 New Debt Service [4] - 251,600 251,600 251,600 251,600
Net Funds Available Before Capital $7,920,856 $8,447,435 $8,754,731 $9,081,125 $9,423,708 Capital
Sources of Funds
Development Impact Fees $979,600 $209,736 $209,736 $209,736 $209,736 Interest from Other Agencies 25,000 - - - -
New Debt Proceeds 4,350,000 - - - -
Total Capital Sources of Funds $5,354,600 $209,736 $209,736 $209,736 $209,736 Uses of Funds
Capital Improvement Projects (CIP) $5,140,000 $623,200 $535,800 $0 $0 Repairs and Maintenance 122,400 - - - -
Project Management Overhead 1,026,200 121,524 104,481 - - Total Capital Uses of Funds 6,288,600 744,724 640,281 - - Net Funds Available After Capital ($33,721) ($96,156) $44,030 $726,923 $777,095 Available Reserves
Beginning available reserves [5] $6,882,000 $6,848,279 $6,752,123 $6,796,153 $7,523,075 Additions (reductions) (33,721) (96,156) 44,030 726,923 777,095 Rate Stabilization Set Aside - - - - -
Ending available reserves $6,848,279 $6,752,123 $6,796,153 $7,523,075 $8,300,170 Target Reserves [6] $5,481,000 $5,769,000 $5,919,000 $6,074,000 $6,222,000 Above (below) Target $1,367,279 $983,123 $877,153 $1,449,075 $2,078,170 Debt Service Coverage
Net Revenues [7] $1,128,035 $1,151,025 $1,199,155 $1,346,310 $1,397,570 Annual Debt Service 371,756 623,981 619,325 619,388 620,475 Coverage [8] 303% 184% 194% 217% 225%
[1] Projected using the existing rates.
[2] Additional revenue from proposed rate adjustments.
[3] Interest earnings on the average fund balance calculated at 2.50%. [4] Loan from Special Projects Construction Fund at 4.0% for 30 years. [5] The available beginning FY 23-24 cash balance provided by District. [6] Target reserve includes Operating, Capital, and Emergency Capital reserves. [7] Includes capacity charge revenue, property tax revenue, and miscellaneous and interest income. [8] Minimum coverage is 125 percent.

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Cost of Service
This section of the report discusses how the water system’s operating and capital costs are allocated for use in designing rates. Establishing rates in California requires that the agency responsible for imposing property-related fees create a nexus between the cost of providing service and the rates to be imposed.

Industry Methodology
This Study uses methodologies from the American Water Works Association (AWWA) to allocate costs in an appropriate manner. AWWA is an industry trade organization that provides guidance on operations and management of water utilities. General principles are provided to assist agencies with the design of water rates such that the rates may be consistent with local requirements while also recognizing state laws and legal framework. The AWWA guidelines have been used to conduct this Study and have been used in the design of the City’s water rates while also following Proposition 218 and the recent San Juan Capistrano court decision.

The annual costs of providing water service from the financial plan are allocated to cost components according to industry standards provided in the AWWA Manual M1. The methodology provides the basis to design rates to generate adequate revenue to meet estimated annual revenue requirements from the financial plan. Costs are then recovered through the design of fixed and variable charges.

Costs of Service to be Allocated
The annual cost of providing service consists of O&M expenses and capital costs of the water system. O&M expenses include costs related to water supply, water distribution, maintenance of the facilities, and general and administrative costs. Capital costs include annual capital improvement funding and debt service discussed in the financial plan.

Water rates are designed from cost allocations to water system cost components, based on the operating characteristics and design of the water system facilities. Cost allocations consider the average rate of water consumed as well as the peak rate at which water is consumed based on the design of the water system. Costs are recovered through fixed and variable charges that are related to average and peak demands as well as customer related costs.

The cost allocation components for water service are Water Supply (groundwater, replenishment, and import), Delivery, Peaking, Meters and Services, Customer, and Direct Fire Protection. FY 2023-24 operating and capital costs of the water system are assigned to each of these components. The total cost to be recovered from the users of the water system by cost component for FY 2023-24 is presented in Table 11. Appendix A provides a detailed allocation of revenue requirements to cost component.

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Water Rate Design
The cost of service analyses described in the previous section provides the basis for water rate design. The goal of the design of rates is to achieve fairness while ensuring that each customer class pays its fair share of costs.

Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section describes how water rates and charges are designed and includes the proposed schedule of water rates for implementation.

Proposed Rate Structure
The proposed water rate structure maintains the current rate structure. The current rate structure includes fixed charges by meter size, and a three-tier variable charge for SFR customers and a uniform volume charge for all other customers. The design of the fixed charges and variable charges are discussed below.

Proposed Fixed Charges
The proposed fixed charges recover the Meters and Services and Customer costs of service identified in Table 11, and additionally recover capacity costs related to public fire protection. Meters and Services costs are recovered on meter and service ratios provided by AWWA. Customer costs are recovered on the number of bills issued.

Public fire protection costs are recovered based on meter capacity ratios provided by AWWA. Public fire protection costs are developed through the allocations presented in Appendix A-2.

Table 12 below presents the design of the proposed monthly fixed charges for water customers. The current fixed charges generate about 25 percent of revenue from water rates. The proposed fixed charges also generate approximately 25 percent of the revenue from water rates.

Table 11
Allocation of Water Revenue Requirements to Cost Component Total
Revenue Water Supply Peaking Customer Direct Fire
Year Requirement Imported Replenish Groundwater Delivery Max Day Max Hour Meters/Serv Customer Protection FY 23-24 $7,730,248 $78,540 $270,000 $1,290,060 $2,375,753 $1,660,845 $743,127 $879,512 $222,200 $210,211 Water and Wastewater Rate Study  City of Loma Linda
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Fixed charges for meter sizes greater than 3/4 inch are increased through application of cost ratios as shown below in Table 13. The Meter and Service charge is increased through meter and service ratios while the public fire protection charge is increased through meter capacity ratios. The Customer charge is a charge per bill and does not increase with meter size. The charges are summed to provide the total bi-monthly charge by meter size as shown in the last column of Table 13.

Table 12
Design of Water Fixed Charges
Customer Service Cost FY 23-24
Customer Cost $222,200
Number of Bills 33,876
Customer Cost per Unit $6.56
Meters and Services Cost FY 23-24
Meters and Services Cost $879,512
Number of Equivalent Meters & Services 44,473
Meters and Services Cost per Unit $19.78
Public Fire Capacity Costs FY 23-24
Public Fire Protection $905,836
Number of Equivalent Meters 58,500
Public Fire Capacity Costs per Unit $15.48
Base Fixed Charge - 3/4" meter $41.82
Table 13
Design of Water Fixed Charges by Meter Size
Meter & Meter & Meter Public Total
Meter Service Services Capacity Fire Customer Bi-monthly Size Ratio Charge Ratio Protection Charge Charge
inches
3/4" 1.00 $19.78 1.00 $15.48 $6.56 $41.82
1" 1.27 $25.17 1.67 $25.81 $6.56 $57.54

1.5" 1.64 $32.36 3.33 $51.61 $6.56 $90.53
2" 2.64 $52.14 5.33 $82.58 $6.56 $141.28
3" 10.00 $197.77 10.67 $165.17 $6.56 $369.50
4" 12.73 $251.70 16.67 $258.07 $6.56 $516.33
6" 19.09 $377.55 40.00 $619.37 $6.56 $1,003.48
8" 26.36 $521.38 66.67 $1,032.29 $6.56 $1,560.23
10" 34.55 $683.19 100.00 $1,548.44 $6.56 $2,238.19
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The fixed charges for years beyond FY 2023-24 are increased at the percentages identified in the financial plan in Table 10 and are presented in Table 14.

Private Fire Protection Fixed Charges. Annual costs allocated to the Fire Protection cost component are separated into Public and Private Fire Protection costs. Public Fire Protection costs are included in the service charges as shown in Table 12 and Table 13. Private Fire Protection costs are recovered from those customers that receive the direct fire protection benefit. The cost by equivalent (6”) private fireline size is provided in Table 15.

The 6” Private Fire Protection charge is increased or decreased based on fire hydrant ratios provided by the AWWA as provided in Table 16. The private fire protection charges for years beyond FY 2023-24 are increased with the percentages identified in Table 10 and are shown in Table 16.

Table 14
Proposed Water Fixed Charges by Meter Size
Current May 1, January 1, January 1, January 1, January 1, Rate FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Meter Size Fixed Charge ($ per bi-month)
3/4" $39.15 $41.82 $43.49 $45.23 $47.04 $48.92
1" $54.47 $57.54 $59.84 $62.23 $64.72 $67.31

1.5" $86.44 $90.53 $94.15 $97.92 $101.84 $105.91
2" $136.00 $141.28 $146.93 $152.81 $158.92 $165.28
3" $361.38 $369.50 $384.28 $399.65 $415.64 $432.27
4" $504.65 $516.33 $536.98 $558.46 $580.80 $604.03
6" $977.44 $1,003.48 $1,043.62 $1,085.36 $1,128.77 $1,173.92 8" $1,517.81 $1,560.23 $1,622.64 $1,687.55 $1,755.05 $1,825.25 10" $2,175.22 $2,238.19 $2,327.72 $2,420.83 $2,517.66 $2,618.37 Table 15
Design of Private Fire Protection Charge
Fire Protection Cost FY 23-24
Private Fire Protection $63,786
Private Fire Protection Eq. Hydrants 540
Private Fire Protection 6" Charge $118.12
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Proposed Variable Charges
Variable charges are designed to recover the Water Supply, Delivery, and Peaking costs from Table 11.

Consumption and peaking characteristics of water system customers were analyzed to allocate costs to customer classification as well as between each tier. Water Supply costs, consisting of groundwater, replenishment, and imported water, were allocated to each tier based on water availability and the demand of each tier.

Tier Definitions. For Single-family Residential (SFR) customers, Tier 1 is defined as consumption to provide basic indoor water use and is based on an assumed 4 persons per household (pph) using 55 gallons per capita per day (gcpd) resulting in a Tier 1 breakpoint of 18 HCF (4 pph x 55 gpcd ÷ 748 gal/HCF x 365 days ÷ 6 bi-monthly billing periods). Tier 2 is defined as consumption related to outdoor water use and is all water consumed beyond Tier 1 and below Tier 3. Tier 3 is defined as excessive use beyond Tier 2 to encourage water conservation. The Tier 3 breakpoint is defined as the SFR summer peak demand, determined from billing information to be 50 HCF.

For the other customer classes of Multifamily/Apartments, Commercial, and Irrigation, these classes will have an individual uniform volume rate structure, however each also recognizes the peaking characteristics of each class in their variable rate. A uniform variable rate structure is recommended for these classes as most of the Multifamily and Commercial customers have separate Irrigation meters.

Delivery Costs. Delivery costs are those operating and capital costs that tend to vary with the total quantity of water consumed associated with service to customers under average-load conditions, without the cost elements of water supply or costs to meet peak system demands. These costs include a portion of O&M expense and capital costs related to treatment, pumping, and distribution and are shared uniformly by all customers of the system.

Table 17 provides the per unit Delivery cost.

Table 16
Proposed Bi-monthly Private Fire Protection Charges
Fireline Hydrant Current May 1, January 1, January 1, January 1, January 1, Size Ratio Charge FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 inches
1" 0.01 $1.01 $1.06 $1.10 $1.14 $1.19 $1.24

1.5" 0.03 $2.96 $3.08 $3.21 $3.34 $3.47 $3.61
2" 0.06 $6.31 $6.57 $6.83 $7.10 $7.38 $7.68

2.5" 0.10 $25.55 $11.81 $12.29 $12.78 $13.29 $13.82
3" 0.16 $39.06 $19.08 $19.85 $20.64 $21.47 $22.33
4" 0.34 $113.47 $40.66 $42.29 $43.98 $45.74 $47.57
6" 1.00 $241.78 $118.12 $122.85 $127.76 $132.87 $138.18 8" 2.13 $434.82 $251.72 $261.79 $272.26 $283.15 $294.48 10" 3.83 $702.35 $452.68 $470.79 $489.62 $509.20 $529.57 Water and Wastewater Rate Study  City of Loma Linda
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Peaking Costs. Peaking costs are costs associated with meeting peak demand rates of use requirements of the water system and include operating and capital costs beyond that required for average rates of use. Water system facilities are designed to meet peak characteristics and are apportioned to customer classes based on their system use characteristics. Peaking costs may be assigned to tiers in a tiered-rate structure based on the customers within the tier that are causing the peak demand.

Peaking costs are first allocated to each customer class based on their total demand. Then for SFR, peaking costs are allocated to the defined tiers based on the peaking factors that occur from customer use within the tiers based on the tier break points discussed above. Tier 1 is considered to have a peaking factor of 1.0, Tier 2 and Tier 3 have peaking factors that reflect the average use per customer within these tiers as a ratio to Tier 1.

Table 18 presents the SFR consumption, peaking factor, peaking cost allocation, and the resulting rate by tier for SFR customers.

Water Supply Costs. The City’s water supply consists of three sources including groundwater, replenishment water, and imported water. Groundwater accounts for about 77 percent of the total water supply. Recently, the City has implemented a Groundwater Replenishment Program to ensure the reliability of the groundwater source.

The Replenishment water is the least expensive source and accounts for nearly 22 percent of the total water Table 17
Design of Uniform Volume Rate for Delivery Costs
Delivery Uniform
Customer Class Costs Volume Rate
Single Family $1,150,017 1,012,290 $1.14
Multifamily/Apartments 465,360 409,628 $1.14
Commercial 340,543 299,759 $1.14
Irrigation 419,834 369,554 $1.14
Total Cost of Service $2,375,753 2,091,231 $1.14
Table 18
Design of Single-family Residential Peaking Rate
Percent Peaking
Consumption Peaking Weighted Cost Rate in
Tier in Tier Consumption Factor Consumption Allocation Tier Tier 1 - 0 to 18 HCF 47.3% 478,657 1.00 478,657 205,632 $0.43 Tier 2 - 18 to 50 HCF 36.7% 371,241 2.06 766,130 329,132 $0.89 Tier 3 - Over 50 HCF 16.0% 162,392 4.46 724,948 311,440 $1.92 100.0% 1,012,290 1,969,735 $846,204
Water and Wastewater Rate Study  City of Loma Linda
Tuckfield & Associates 23
supply. The most expensive water is imported water purchased from SBVMWD consisting of less than 500 acrefeet (AF) annually, and accounts for less than 1 percent of the total water supply.

The sources of water supply are allocated to each tier assuming the least expensive source of water is used first, followed by remaining sources in order of cost to meet the demand. Table 19 provides the City’s demand by tier, the water supply source used to meet the demand in the tier, the costs associated with the water supply, and the resulting water supply rate in the tier.

Table 20 provides a summary of the variable rate components from Tables 17 through 19 applicable to each customer classification. Each class pays for the same Delivery costs; however, each class pays for their individual peaking requirements and differentiated water supply costs. SFR pays for a more expensive water supply in Tier 3 due to the customers in that tier causing the City to obtain more expensive water to meet that demand. Other customers pay for a blend of water supply based on their consumption within the defined tiers.

Table 19
Design of Water Supply Costs by Tier
Projected Consumption Met By Water Water
Tier Consumption Groundwater Replenish Imported Supply Costs Supply Rates HCF HCF HCF HCF $ $/HCF
Tier 1 - 0 to 18 HCF 783,561 310,417 473,144 $517,552 $0.66 Tier 2 - 18 to 50 HCF 491,466 491,466 391,936 $0.80
Tier 3 - Over 50 HCF 816,203 815,781 423 729,112 $0.89
Total 2,091,230 1,617,665 473,144 423 $1,638,600
Table 20
Design of Water Rate Structure
[1] Peaking Differentiated Supply costs represent a blended rate.

Differentiated Proposed
Delivery Peaking Supply Volume
Customer Class Costs Costs Costs Rate
Single Family
Tier 1 - 0 to 18 HCF $1.14 $0.43 $0.66 $2.23
Tier 2 - 18 to 50 HCF $1.14 $0.89 $0.80 $2.82
Tier 3 - Over 50 HCF $1.14 $1.92 $0.89 $3.95
Multifamily/Apartments [1] $1.14 $0.37 $0.73 $2.23
Commercial [1] $1.14 $0.78 $0.87 $2.79
Irrigation [1] $1.14 $1.12 $0.87 $3.13
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Proposed Water Rates
Table 21 presents the proposed fixed and variable charges for the water system for the next five years. Current fixed charges are provided as well as the proposed fixed charges for May 1, 2024 developed in the tables above, and the proposed fixed charges for each January 1 through January 1, 2028. The table also includes the current and proposed uniform volume rates for SFR customers all other customers developed in this Study. SFR customers have a tiered rate structure while all other customers have a uniform volume rate structure. The variable charges are proposed for implementation beginning on May 1, 2024 and each January 1 through January 1, 2028.

Table 21
Proposed Water Fixed and Variable Charges
Current May 1, January 1, January 1, January 1, January 1, Rate FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Meter Size Fixed Charge ($ per bi-month)
3/4" $39.15 $41.82 $43.49 $45.23 $47.04 $48.92
1" $54.47 $57.54 $59.84 $62.23 $64.72 $67.31

1.5" $2.96 $3.08 $3.21 $3.21 $3.21 $3.21
2" $6.31 $6.57 $6.83 $6.83 $6.83 $6.83

2.5" $25.55 $11.81 $12.29 $12.29 $12.29 $12.29
3" $39.06 $19.08 $19.85 $19.85 $19.85 $19.85
4" $113.47 $40.66 $42.29 $42.29 $42.29 $42.29
6" $241.78 $118.12 $122.85 $122.85 $122.85 $122.85
8" $434.82 $251.72 $261.79 $261.79 $261.79 $261.79
10" $702.35 $452.68 $470.79 $470.79 $470.79 $470.79
Variable Charge ($ per HCF)
Single-family Residential
Tier 1 - 0 to 18 HCF $1.91 $2.23 $2.32 $2.41 $2.51 $2.61 Tier 2 - 18 to 50 HCF $2.74 $2.82 $2.93 $3.05 $3.17 $3.30 Tier 3 - Over 50 HCF $3.87 $3.95 $4.11 $4.27 $4.44 $4.62 Multiunit Residential $2.11 $2.23 $2.32 $2.41 $2.51 $2.61 Commercial $2.75 $2.79 $2.90 $3.02 $3.14 $3.27
Irrigation $3.02 $3.13 $3.25 $3.38 $3.52 $3.66
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Water Bill Impact Analysis
An impact analysis was performed to evaluate the change in SFR customer bills that would occur from the implementation of the proposed water rates for the May 2024 rate implementation. The impacts are provided in Table 22 below. For a SFR customer with a 3/4-inch meter size using the average consumption of 35 hundred cubic feet (HCF) bi-monthly, the bill will increase from $120.11 to $129.90, an increase of $9.79 or 8.2 percent.

The 8.2 percent increase is higher than the overall 4.0 percent revenue increase required in the water financial plan due to cost of service adjustments the first year of the rate plan. Subsequent year rates increase at the percentages from the water financial plan in Table 10. Current and the proposed water bills for a SFR customer with a ¾-inch meter using various levels of consumption are shown in Table 22.

Water Rate Survey
A water rate survey was conducted for neighboring communities to the City of Loma Linda. Chart 1 compares the City’s SFR bi-monthly water bill with those of neighboring communities at the same consumption of 35 HCF bimonthly (the City’s SFR average consumption). The rate survey includes rate schedules in effect November 2023.

Water bills for the City are shown using the current rates and the proposed rates for implementation May 1, 2024.

The chart indicates that with the proposed May 2024 water rates, a SFR customer using the average monthly consumption of 35 HCF will experience a bill that is in the mid to upper range of the communities listed.

Table 22
Comparison of Current Single-family Residential Bi-monthly Water Bill with 3/4-inch Meter Size with Proposed Bill Using May 2023 Water Rates
Current Bill Proposed FY 23-24 Bill
Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $39.15 $0.00 $39.15 $41.82 $0.00 $41.82 $2.67 6.8%
Very Low 5 $39.15 $9.55 $48.70 $41.82 $11.15 $52.97 $4.27 8.8% Low 10 $39.15 $19.10 $58.25 $41.82 $22.30 $64.12 $5.87 10.1% Median 24 $39.15 $50.82 $89.97 $41.82 $57.06 $98.88 $8.91 9.9% Average 35 $39.15 $80.96 $120.11 $41.82 $88.08 $129.90 $9.79 8.2% 50 $39.15 $122.06 $161.21 $41.82 $130.38 $172.20 $10.99 6.8% High 60 $39.15 $160.76 $199.91 $41.82 $169.88 $211.70 $11.79 5.9% 75 $39.15 $218.81 $257.96 $41.82 $229.13 $270.95 $12.99 5.0% Very High 100 $39.15 $315.56 $354.71 $41.82 $327.88 $369.70 $14.99 4.2% Water and Wastewater Rate Study  City of Loma Linda
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Chart 1
Single-family Residential Bi-monthly Water Bills with 3/4-inch Meter Using 37 HCF For Rates in Effect November 2023
Note: Above table uses water rates in effect November 2023. City’s May 2024 bill is based on the rate structure and rates in Table 21.
$0 $20 $40 $60 $80 $100 $120 $140 $160
East Valley Water District
Loma Linda May 1, 2024 Bill
West Valley Water District
Current Loma Linda Bill
City of SB Muni Water Dept.

City of Colton
City of Redlands
Yucaipa Valley Water District
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Wastewater Financial Planning
Financial planning for the wastewater enterprise includes identifying and projecting revenues and revenue requirements of the wastewater system for a five-year planning period. Estimates of revenue from various sources are compared with the projected revenue requirements. This comparison allows the review of the adequacy of existing revenue to meet annual obligations and provide the basis for revenue adjustments. New wastewater rates and charges may be created to recover the City’s annual operating and capital costs associated with the wastewater system.

This section discusses the current wastewater rates, user classifications, revenues and revenue requirements, planned capital improvement expenditures and financing sources, and proposed revenue adjustments.

Current Wastewater Rates
The current wastewater rates consist of fixed charges and variable charges. Residential (including single-family dwellings and multifamily with 1 to 3 dwellings) customers are charged a fixed charge per month. Non-Residential customer rates include a fixed charge and variable charge based on water consumption depending on a classification into one of seven classifications. The current rates are presented in Table 23.

Table 23
Current Wastewater Fixed and Variable Charges
Classification Jan 1, 2023
$/bi-month
Residential $38.47
Commercial $8.57
Classification Jan 1, 2023
$/HCF
Class I: MFR (>=4 units) $1.58
Class II: Catergory a 1.98
Class II: Catergory b 1.84
Class III: Auto Service 2.00
Class IV: Laundry, Mortuary 2.11
Class V: Restaurant 2.11
Class VI $1.89
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Wastewater User Classifications
Number of Customers
The City currently classifies wastewater customers as Single-family Residential, Multifamily Residential, and Commercial, with Commercial being further classified into one of seven classifications. Residential customers account for about 87 percent of the total customers served by the wastewater system. Residential accounts and dwelling units are projected to grow at a rate of 0.50 percent annually following the assumptions listed in Table 1.

Table 24 provides the historical and projected number of customers by classification.

Wastewater Financial Plan
The financial plan provides the means of analyzing the revenue and revenue requirements of the wastewater system and its impact on reserves as well as the ability to fund on-going operation and maintenance expense and capital infrastructure requirements. Below is a discussion of the projection of revenue, operation and maintenance expenses, capital improvement needs of the wastewater system and its financing, debt service, and revenue adjustments needed to maintain a sustainable wastewater enterprise.

Table 24
Historical and Projected Wastewater Customers by Classification [1] Accounts are forecast to increase based on the assumed growth rate of 0.5% annually from Table 1.

Historical Projected
Customer Class FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Number of Accounts
Single-family [1] 4,542 4,565 4,588 4,611 4,634 4,657
Multi Family (4+ units, Mobile Home Parks) 359 361 363 365 367 369 Commercial Class IIA- Non Offices (Retail, 80 80 80 80 80 80 Commercial Class IIB 60 60 60 60 60 60
Commercial Class III (Auto Repair, Car Wash) 11 11 11 11 11 11 Commercial Class IV (Laundromat) 2 2 2 2 2 2
Commercial Class V (Restaurants, Hotels) 28 28 28 28 28 28 Class VI (Institutional, LLU) 1 1 1 1 1 1
Class VI (Hospital, Convalescent Homes) 0 0 0 0 0 0
Class VI (Churches) 6 6 6 6 6 6
VA 3 3 3 3 3 3
Class VI (Hospitals) 24 24 24 24 24 24
Class VI (Schools) 6 6 6 6 6 6
Sewer Flat Rate 565 565 565 565 565 565
Total Accounts 5,687 5,712 5,737 5,762 5,787 5,812
Number of Dwelling Units
Single-family [1] 4,542 4,565 4,588 4,611 4,634 4,657
Multi Family (4+ units, Mobile Home Parks) [1] 4,515 4,538 4,561 4,584 4,607 4,630 Total Dwelling Units 9,057 9,103 9,149 9,195 9,241 9,287 Water and Wastewater Rate Study  City of Loma Linda
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Revenues
The City receives wastewater revenue from operating and miscellaneous sources. Operating revenue is received from rates and charges for wastewater service. The revenue is projected by applying the current wastewater rates from Table 23 to the projected number of accounts and non-residential water consumption. Table 25 presents the projected fixed and variable charge revenue from current wastewater rates of the wastewater system.

Miscellaneous revenue includes City of San Bernardino pass-through revenue and miscellaneous income. The City collects revenue for wastewater treatment to its customers from charges and remits this to the City of San Bernardino. Projected revenue collected from City of San Bernardino wastewater treatment charges and other miscellaneous revenue is presented in Table 26.

Table 25
Projected Rate-based Wastewater Revenue Using Current Rates [1] FY 23-24 and forecast revenue calculated by multiplying current wastewater service charges by the number of projected customers and units. [2] FY 23-24 and forecast revenue calculated by multiplying projected water sales volume of wastewater customers by the current variable rates.

Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Wastewater Service Revenues
Fixed Charges [1] $1,112,672 $1,118,084 $1,123,495 $1,128,907 $1,134,319 Variable Charges [2] 1,416,335 1,419,486 1,422,636 1,425,788 1,428,939 Total Revenues From Current Rates $2,529,007 $2,537,570 $2,546,131 $2,554,695 $2,563,258 Table 26
Projected Wastewater Miscellaneous Revenue
Budget Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Miscellaneous Income $60,000 $0 $0 $0 $0
Refund and Reimbursements 600 500 500 500 500
San Bernardino Pass-Through Revenue $3,502,200 $3,642,288 $3,787,980 $3,939,499 $4,097,079 Total Miscellaneous Revenues $3,562,800 $3,642,788 $3,788,480 $3,939,999 $4,097,579 Water and Wastewater Rate Study  City of Loma Linda
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Revenue Requirements
Revenue requirements of the wastewater system include operation and maintenance expense, capital improvement funding, City of San Bernardino treatment expense, and advances repayment. Each of these items are discussed below.

Operation and Maintenance Expense
Operation and maintenance expenses (O&M) are an on-going obligation of the wastewater system and such costs are normally met from wastewater service revenue. O&M includes the cost to operate and maintain the wastewater collection system. Costs also include technical services and other general and administrative expenses.

Table 27 provides a summary of the wastewater O&M expenses for the Study period.

Capital Improvement Funding
The City pays for wastewater system replacements and capital improvements from the sewer and sewer capital funds. The City plans for these expenses through its capital improvement planning during the fiscal year. The annual amount necessary to fund the improvements is included in the wastewater financial plan such that revenue from wastewater rates, as well as from reserves, are providing funding to aid in the cost of these replacements and improvements. Any money not spent accumulates into reserves to be used for future capital improvement spending. Project management overhead expenses are also incurred with each project of the CIP.

Advances Repayment
In the past, the City borrowed funds from the water enterprise to meet annual wastewater revenue requirements.

The wastewater financial plan proposes to repay the borrowed funds to the Water Fund in an amount of $500,000 in FY 2023-24, then about $165,600 annually for four years.

Table 27
Projected Wastewater Operation and Maintenance Expense
Budget Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Maintenance Personnel Services $807,700 $851,164 $897,258 $946,161 $998,061 Maintenance and Operations 4,839,800 5,020,016 5,207,040 5,401,129 5,602,557 Total $5,647,500 $5,871,180 $6,104,298 $6,347,290 $6,600,618 Water and Wastewater Rate Study  City of Loma Linda
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Wastewater Capital Improvement Program
The City has developed a wastewater CIP that lists capital expenditures for FY 2023-24 through FY 2027-28, presented in Table 28. Major projects include only collection system improvements including pump station installation and repairs and sewer line replacements since the City does not own treatment facilities. The CIP is funded through wastewater revenues, capital reserves, and DIFs.

Wastewater Financial Plan
A financial plan has been prepared for the wastewater utility that includes the revenues and revenue requirements that were identified for the wastewater system and is presented in Table 29. The plan incorporates specific financial planning goals to provide guidance to maintain the health of the wastewater utility on an on-going basis. The goals included the following.  Generate positive levels of income in each year of the Study period  Maintain the operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement and improvement spending requirements Proposed Revenue Adjustments
Analysis of the revenues and revenue requirements of the wastewater financial plan indicates that no revenue increases are necessary. Revenue currently being received is sufficient to meet the financial planning criteria discussed above. Table 29 provides the wastewater financial plan.

Table 28
Wastewater Capital Improvement Program
Budget Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Current Capital Improvement Projects (CIP) [1]
Install sewer pump station at the end of Juanita St. $250,000 $0 $0 $0 $0 Campus St. - Jack and bore steel pipe casing at UPRR - 206,000 - - - Lilac St. - Pipe bursting from 8" to 12" sewerline - 257,500 - - - Total Wastewater CIP $250,000 $463,500 $0 $0 $0
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Table 29
Wastewater Financial Plan
Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Proposed Revenue Increase (April 1) 0.0%
Proposed Revenue Increase (January 1) 0.0% 0.0% 0.0% 0.0% Sources of Funds
Rate-based Revenues, Existing Rates [1] $2,529,007 $2,537,570 $2,546,131 $2,554,695 $2,563,258 Total Additional Water Sales Revenue [2] 0 0 0 0 0
Miscellaneous Income 60,600 500 500 500 500
Invoiced San Bernardino Charges 3,502,200 3,642,288 3,787,980 3,939,499 4,097,079 Interest Income [3] 78,284 76,400 69,839 73,943 75,997
Total Sources of Funds $6,170,091 $6,256,758 $6,404,450 $6,568,637 $6,736,834 Operations
O&M and Capital Outlay $2,145,300 $2,228,892 $2,316,318 $2,407,791 $2,503,539 San Bernardino Treatment Service 3,502,200 3,642,288 3,787,980 3,939,499 4,097,079 Advances Repayment 500,000 165,600 165,600 165,600 165,600 Net Funds Before Capital $6,147,500 $6,036,780 $6,269,898 $6,512,890 $6,766,218 Capital
Sources of Funds
Development Imnpact Fees $176,900 $69,000 $69,000 $69,000 $69,000 Total Sources of Capital Funds $176,900 $69,000 $69,000 $69,000 $69,000 Uses of Funds
Capital Improvements $250,000 $463,500 $0 $0 $0
Project Management Overhead 48,800 90,383 0 0 0
Total Uses of Capital Funds $298,800 $553,883 $0 $0 $0
Net Funds Available After Capital ($99,309) ($264,905) $203,552 $124,747 $39,616 Available Reserves
Beginning available reserves [4] $3,056,000 $2,956,691 $2,691,786 $2,895,338 $3,020,085 Additions (reductions) (99,309) (264,905) 203,552 124,747 39,616 Ending available reserves $2,956,691 $2,691,786 $2,895,338 $3,020,085 $3,059,701 Target Reserves [5] $1,261,000 $1,305,000 $1,351,000 $1,400,000 $1,450,000 Above (below) Target $1,695,691 $1,386,786 $1,544,338 $1,620,085 $1,609,701 Debt Service Coverage
Net Revenues $650,691 $364,195 $369,152 $290,347 $205,216 Annual Debt Service $0 $0 $0 $0 $0
Coverage 0% 0% 0% 0% 0%
[1] Projected using the existing rates.
[2] Additional revenue from revenue adjustments.
[3] Interest earnings on the average fund balance calculated at 2.50%. [4] The available FY 23-24 reserve balance provided by the City. [5] Target reserve includes Operating, Capital, and Emergency Capital reserves.

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Wastewater Rate Survey
A wastewater rate survey was conducted for neighboring communities to the City of Loma Linda. Chart 2 compares the City’s current and proposed SFR bi-monthly wastewater bill with those of neighboring communities.

The chart indicates that a City SFR customer will experience a bill that is in the mid-range of the communities surveyed.

Chart 2
Single-family Residential Bi-monthly Wastewater Bills
For Rates in Effect November 2023
Note: Above table uses wastewater rates in effect November 2023. City’s May 2024 bill is based on the rate structure and rates in Table 23 and includes the San Bernardino Treatment charge.
$0 $20 $40 $60 $80 $100 $120 $140
West Valley Sanitation District
Yucaipa Valley Water District
City of SB
Loma Linda Current Bill
East Valley Water District
City of Colton
City of Redlands
Tuckfield & Associates 34
Appendix A
Water Cost of Service Allocation is provided in Appendix A.

Tuckfield & Associates 35

Appendix A-1
Allocation of Water Revenue Requirements to Cost Component [1] Adjustment accounts for a partial year rate increase.

Line Total Water Supply Peaking Customer Direct Fire
No. Description FY 23-24 Imported Replenish Groundwater Delivery Max Day Max Hour Meters/Serv Customer Protection Water Production
1 Salaries and Benefits $840,400 $0 $0 $0 $494,353 $346,047 $0 $0 $0 $0 2 Utilities 1,292,500 2,440 - 1,290,060 - - - - - -
3 Replenishment Water Purchases 270,000 - 270,000 - - - - - - - 4 Imported San Bernardino Water Purchases 76,100 76,100 - - - - - - - - 5 Repairs and Maintenance 14,900 - - - 8,765 6,135 - - - - 6 Materials & Other Services 3,000 - - - 1,765 1,235 - - - - 7 All Other 1,727,300 - - - 1,016,059 711,241 - - - -
8 Total Water Production $4,224,200 $78,540 $270,000 $1,290,060 $1,520,941 $1,064,659 $0 $0 $0 $0 Water Transmission and Distribution
9 Salaries and Benefits $730,600 $0 $0 $0 $129,691 $90,784 $269,758 $153,426 $0 $86,941 10 Repairs and Maintenance 105,900 - - - 18,799 13,159 39,101 22,239 - 12,602 11 Capital Asset Aquisition 53,700 - - - 9,532 6,673 19,828 11,277 - 6,390 12 All Other 497,000 - - - 88,224 61,757 183,506 104,370 - 59,143 13 Total Water Transmission and Distribution $1,389,500 $0 $0 $0 $246,655 $172,658 $513,042 $291,795 $0 $165,351 Water Meters
14 Salaries and Benefits $158,600 $0 $0 $0 $0 $0 $0 $158,600 $0 $0 15 Repairs and Maintenance 78,600 - - - - - - 78,600 - - 16 Cap Cont -Transf Of Cap Assets 64,100 - - - - - - 64,100 - - 17 All Other 103,400 - - - - - - 103,400 - -
18 Total Water Meters $404,700 $0 $0 $0 $0 $0 $0 $404,700 $0 $0 19 Water Administration 1,530,700 0 0 0 525,095 367,566 152,408 206,906 229,605 49,120 20 Total Operation and Maintenance Expense $7,549,100 $78,540 $270,000 $1,290,060 $2,292,691 $1,604,883 $665,449 $903,401 $229,605 $214,471 Capital Costs
21 2016 Water Bonds Debt Service 371,756 - - - 156,999 107,718 99,138 5,245 - 2,657 22 Total Capital Costs $371,756 $0 $0 $0 $156,999 $107,718 $99,138 $5,245 $0 $2,657 Adjustments
23 Revenue Offsets ($1,363,428) $0 $0 $0 ($528,875) ($370,213) ($153,505) ($208,396) ($52,965) ($49,474) 24 Adjustments for Annual Cash Balance (33,721) - - - (13,080) (9,156) (3,797) (5,154) (1,310) (1,224) 25 Adjustments to Annualize Rate Increase (1) 1,206,541 - - - 468,019 327,613 135,842 184,416 46,870 43,781 26 Total Adjustments ($190,608) $0 $0 $0 ($73,936) ($51,756) ($21,460) ($29,134) ($7,405) ($6,917) 27 Total Cost of Service $7,730,248 $78,540 $270,000 $1,290,060 $2,375,753 $1,660,845 $743,127 $879,512 $222,200 $210,211 Tuckfield & Associates 36
Appendix A-2
Allocation of Costs to Public and Private Fire Protection Allocated Peaking Direct Fire
Description Total Cost Max Day Max Hour Protection
Unit Costs of Service $651.24 $36.01 $35.70
Units of Measure Ccf/day Ccf/day Eq. Hyd
Public Fire Protection
Units of Service 770 5,390 5,889
Allocated Cost of Service $905,836 $501,493 $194,132 $210,211 Private Fire Protection
Units of Service 71 494 0
Allocated Cost of Service $63,786 $45,985 $17,801 $0
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Approve an Agreement with CGI Digital in their Street Banner Program [Community Development] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
New Business Item: 5A
To
City Council
From
Lorena Matarrita, Community Development Director
Via
T Jarb Thaipejr, City Manager
Approved/Continued/Denied by City Council
Date:

RECOMMENDATION:

It is recommended that the City Council approve and authorize the City Manager to execute a three-year agreement with Community Showcase Banners, LLC (DBA CGI Digital) for participation in their no-cost decorative street banner program.

BACKGROUND:

City staff, in collaboration with CGI Digital in 2023, successfully produced five videos showcasing the City of Loma Linda.

Following the conclusion of this video program, CGI Digital has expressed interest in initiating a new project with the city, once again at no cost. The proposed project involves the introduction of fresh street banners annually, aiming to enhance the cityscape and overall aesthetic appeal.

ANALYSIS:

Under the terms of the agreement, CGI Digital/Community Showcase Banner, LLC, will provide the design, installation, and maintenance of custom graphic vinyl banners celebrating the City at no cost. These high-quality, double-sided vinyl banners can accommodate various pole sizes. City staff will conceptualize new designs and themes, offering flexibility based on preferences. CGI's graphic arts department is available to collaborate on design concepts, ranging from patriotic and historical themes to city logos. Local artists or school contests can also be integrated into the design process. In addition, this program allows for annual redesigns of the banners.

While CGI offers the program at no cost to the city, local companies have the option to sponsor banners, promoting their business. This provides valuable exposure to smaller businesses, enabling them to compete effectively. However, the program is not contingent on sponsorship, and CGI commits to providing 25 banners free of charge if no local businesses choose to sponsor.

The City of Loma Linda retains control over the final decision on participants, content, design, and banner locations. A letter of introduction from the city is part of the agreement, and there is no required number of partner participants. At the end of each year in the program, CGI will give each sponsor the option to proudly keep their designated banner.

Council’s approval not only endorses this innovative proposal but also contributes to the ongoing beautification and revitalization of our city streets. The agreement between Community Showcase Banners, LLC (DBA CGI Digital) and the City of Loma Linda will remain in effect from the date it is signed by both parties until the completion of the three (3) years of banner display. (See Attachments A and B for details.) ENVIRONMENTAL IMPACT:

Attachments
ATTACHMENT A - Agreement.pdf
ATTACHMENT B - City Letter Invitation Template.pdf
Installation of signs is ministerial and therefore exempt from the California Environmental Quality Act.

FINANCIAL IMPACT:

There is no cost to the City of Loma Linda. CGI Digital will be responsible for all costs associated with the development and production of all street banners.

Name: Lorena Matarrita
Title: Community Dev. Director
Address: 25541 Barton Road
City, State, Zip: Loma Linda, CA 92354
Phone: 909-799-2839
Email: [email protected]
Website: www.lomalinda-ca.gov
This agreement is between Community Showcase Banners, LLC an affiliate company of CGI Communications, Inc. D/B/A CGI Digital and the city of Loma Linda, CA, and shall remain in effect from the date it is signed by both parties until the completion of the three (3) years of banner display, as described herein.

Community Showcase Banners shall provide the following:
● A minimum of 25 full-color, custom graphic vinyl banners for all permissible poles ● Business sponsors featured on the bottom 30% of the banner ● Artwork, design and size customized to meet your community’s specifications (standard size 30” x 72”)
● All brackets, hardware, installation, maintenance, and removal ● Quantity of banners determined by number of sponsor participants ● Duration of sponsor participation will be one (1) year with the option to renew each following year of the agreement
● Sponsorship fulfillment including all related aspects of marketing, production, and printing ● The city of Loma Linda, CA will assume no cost or liability for the sales and production of the banners for this project
● Will remove all banners, brackets, and hardware after the completion of the three year program The city of Loma Linda, CA shall provide the following:
● Letter of introduction supporting the program on your organization’s letterhead ● The right for Community Showcase Banners to use organization’s name in connection with the preparation, production and marketing of the program set forth herein only ● Identification of, access to, and permission to utilize the preferred pole sites for proper banner placement
● Identification of and access to a minimum of 25 poles for banner placement We, the undersigned, understand the above information and have full authority to sign this agreement.

Loma Linda, CA Community Showcase Banners / CGI
Communications, Inc.

Signature:

Name (printed): Name (printed): Nicole Rongo
Title: Title: Vice President, Government Relations &
Strategic Partnerships, CGI Communications, Inc.

Date: Date: 12/21/2023
Attachment B – City Letter Invitation Template
DATE HERE, 2024
Dear Valued Business Owners:

As you know the city of Loma Linda, CA is dedicated to making our community a great place to live, work, shop, and conduct business. Because of that, we have agreed to participate in a promotional streetscape banner campaign conducted by Community Showcase Banners.

This program will reinforce our Loma Linda, CA brand, brighten and invigorate our downtown. These banners, designed exclusively for the city of Loma Linda, CA will showcase our community's economic vitality and the support of our local businesses.

A representative from Community Showcase Banners will be contacting you to discuss the street-scape banner campaign. We encourage you to consider participating in this program as it provides an exciting new opportunity to showcase community pride and gives business owners the opportunity to market themselves unlike ever before.

To learn more about sponsorship opportunities visit the website below or reach out to the community’s program manager directly:

WEBSITE AND CONTACT INFORMATION FOR SPONSORSHIP REP WILL BE ADDED HERE! Best Regards,
(SIGNATURE)
Signatory
Title

Loma Linda City CouncilJanuary 9, 2024

Loma Linda City Council
January 9, 2024