HomeMy Public PortalAbout2024.001 (01-16-24)RESOLUTION NO 2024.001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
ESTABLISHING WATER AND SEWER RATES AND RELATED FEES FOR THE
CITY OF LYNWOOD FOR FISCAL YEAR 2023-2024 THROUGH FISCAL YEAR
2027-2028 AS ORDERED BY THE CITY COUNCIL ON JANUARY 16, 2024
WHEREAS, On August 15, 2023, the City Council of Lynwood approved a
continuation of Public Hearing to November 07, 2023; and
WHEREAS, the November 7, 2023 Public Hearing was continued to afford
the City and Robert D. Niehaus, Inc. the necessary time to thoroughly assess all
available options. This comprehensive review aimed to furnish the City Council with
a strategic and well-informed approach to effectively tackle the financial challenges
confronting the City's Water and Sewer Utility; and
WHEREAS, City staff analyzed the operations of the City's water and sewer
facilities, and considered the information available from City records as well as the
studies of Robert D. Niehaus, Inc., and based on said information prepared a
comprehensive "City of Lynwood 2023 Water and Sewer Rate Study" that analyzed
the City water and sewer systems operations and costs associated therewith, and
recommended water and sewer rates, and related fees, for Fiscal Year 2023-2024
through Fiscal Year 2026-2027; and
WHEREAS, the recommendations were developed utilizing the City's
customer usage data, billing records, accounting, operating and management
records, capital improvement plan, debt ratios, and reserve policies; and
WHEREAS, the study considers the legal framework in developing the rates
to ensure that the calculated cost of service rates provide a fair and equitable
allocation of costs to the different customer classes per Article XIII C (Proposition
26), Article XIII D, Section 6 (Proposition 218), and Article X, Section 2 of the
California Constitution govern the principles applicable to the rate study; and
WHEREAS, the resulting rates form an equitable rate structure which is
based on the actual cost to provide service for each customer will accomplish the
City's goals of capital and reserve funding as well as maintaining debt service
coverage ratios; and
WHEREAS, the City Council is vested with the authority to impose
reasonable rates for municipal services in accordance with provisions of California
law.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD
DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and
declares that the foregoing recitals are true and correct and incorporates them
herein as findings and as substantive part of this resolution.
Section 2. The City Council receive and file all findings, recitals and
determinations identified above in the City of Lynwood 2023 Water and Sewer Rate
Study.
Section 3. The City Council approves of an emergency utility relief program
for residents' utility infrastructure repairs or replacement with a City grant of up to
$5,000 or 50%, whichever is greater; with an annual budgeted amount of $50,000
to come from retail cannabis revenues.
Section 4. The City Council approves of a water conservation incentive
program with an annual budgeted amount of $25,000 to come from retail cannabis
revenues.
Section 5. The City Council hereby overrules all oral and written protests,
and approves revenue increases of those published in the notice of public hearing,
as reflected in the following schedules:
Water Revenue Adjustments FY 2023-24 to FY 2027-28
FY 2024 FY 2025 FY 2026 FY 2027
Recommended Rate
Adjustment
14.5% 6.0% 6.0% 6.0%
Variable Charges
FY 2028
5.0%
Current
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
All Use,
per hcf
$4.23
$4.76
$5.04
$5.35
$5.67
$5.95
Fixed Charges
Meter
Size
Current
FY 2024
FY 2025
FY 2026
Domestic Water Service
FY 2027
FY 2028
3/4 -in
1 -in
$37.68
$50.68
$40.84
$62.51
$43.29
$45.89
$48.64
$51.07
$66.26
$70.24 $74.45
2
$78.18
1 1/2 -in
$83.00
$116.21
$123.18
$130.57
$138.41
$145.33
2 -in
$121.90
$180.90
$191.76
$203.26
$215.46
$226.23
3 -in
$225.78
$331.96
$351.88
$373.00
$395.38
$415.14
4 -in
$342.50
$547.72
$580.58
$615.42
$652.34
$684.96
6 -in
$666.60
$1,086.62
$1,151.82
$1,220.93
$1,294.19
$1,358.90
8 -in
$1,185.38
$1,733.57
$1,837.58
$1,947.84
$2,064.71
$2,167.94
10 -in
N/A
$2,488.55
$2,637.86
$2,796.14
$2,963.90
$3,112.10
Fire Service Line
3/4 -in
N/A
$23.89
$25.33
$26.85
$28.46
$29.88
1 -in
$25.94
$34.21
$36.27
$38.44
$40.75
$42.79
1 1/2 -in
$33.66
$59.78
$63.37
$67.17
$71.20
$74.76
2 -in
$42.94
$90.59
$96.02
$101.78
$107.89
$113.28
3 -in
$67.76
$162.51
$172.26
$182.60
$193.56
$203.23
4 -in
$95.58
$265.25
$281.16
$298.03
$315.91
$331.71
6 -in
$172.94
$521.85
$553.16
$586.35
$621.53
$652.60
8 -in
$296.74
$829.89
$879.68
$932.46
$988.41
$1,037.83
10 -in
$466.96
$1,189.37
$1,260.74
$1,336.38
$1,416.56
$1,487.39
Sewer Revenue Adjustments FY 2023-24 to FY 2027-28
Current
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Recommended
Rate Adjustment
40/
40/
400
4%
40/
Residential
$34.54
$36.38
$37.84
$39.35
$40.93
$42.56
Commercial
$184.70
$189.88
$197.47
$205.37
$213.59
$222.13
Section 6. Authorize the Mayor to execute to Resolution for and on behalf
of the City of Lynwood.
Section 7. This Resolution shall take effect immediately upon its adoption
by the City Council.
Section 8. The City Clerk shall certify to the adoption of this Resolution and
hereafter the same shall be in full force and effect.
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PASSED, APPROVED and ADOPTED this le day of JANUARY 2024.
Rita Soto,
Mayor Pro Tem
ATTEST:
Maria Quinonez
City Clerk
APPROVED AS TO FORM:
Noel Tapia
City Attorney
APPROVED AS TO CONTENT:
Julian Le
Director of Public Works
Er rnardez
City 'tan er
4
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do
hereby certify that the foregoing Resolution was passed and adopted by the City
Council of the City of Lynwood at a meeting held on the 16th day of January
2024.
AYES: COUNCIL MEMBERS CAMACHO, FLORES, MUNOZ-GUEVARA,
MAYOR PRO-TEM SOTO AND MAYOR SOLACHE
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Date: 3145--/q
Maria Quinonez,
City Clerk
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and
the Clerk of the City Council of said City, do hereby certify that the above foregoing
is a full, true and correct copy of Resolution No. 2024.001 on file in my office and
that said Resolution was adopted on the date and by the vote therein stated dated
this 16th day of January 2024.
L6/1(
aria Quinonez,
City Clerk
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