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Home My WebLink AboutResolution No. 4184, Water Rates for Fiscal Years 2010 and 2011 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Resolution No. 4184 – Water Rates MEETING DATE: August 17, 2009 RECOMMENDATION: Adopt Resolution No. 4184 which includes water rates effective on September 1, 2009 and September 1, 2010. Consider amending proposed bulk water rate to $4.05/1,000 gallons in FY10 and $5.05/1,000 gallons in FY11 (Section 2, page 2 of Resolution No. 4184.) BACKGROUND: Attached is Resolution 4184 that adopts water rates for the next two years. These rates are based on an update to the City’s Comprehensive Water Rate study. We continue to operate with a tiered block of rates for residences, to encourage water conservation. A copy of the original rate study, and the updated study, can be found online at http://www.bozeman.net/bozeman/finance/Accounting/budgetDocuments.aspx All rate tiers increase by 3.2% in FY10 and an additional 3.2% in FY11. Bulk Water Rate: After publication of this resolution, staff confirmed the costs for the water fill station equipment and reviewed information from other cities on bulk water prices. We 131 recommend that the Commission consider adopting an increase above what was originally suggested, bringing the bulk water rate to $4.05/1,000 gallons in FY10 and $5.05/1,000 gallons in FY11. These charges are listed in Section 2, on page 2 of the Resolution. City/County Current Price/1,000 gallons bulk water Great Falls $1.47, via fire hydrants Cascade County $2.50 Helena $2.96 Bozeman $3.05, with minimum charge of $5.00 Miles City $3.93, with minimum charge of $18.87 Kalispell $4.14, with minimum charge of $41.40 The City sells approximately 1.5M gallons of water through its water fill station each year. The largest users of bulk water are city departments, contractors, and homeowners outside the city limits. We are making significant upgrades to the station, with an automated system to replace the current “honor system” for water purchases, which was recommended in the Water Facility plan. We anticipate that this amendment would bring approximately $1,000 in additional dollars in FY10, and an additional $1,000 in FY11. This additional money would recover the cost of the new automated fill station (equipment/housing) over an approximate 15-20 year period. FISCAL EFFECTS: This resolution is estimated to increase Water Fund revenue by approximately $192,000 in FY10 and an additional $198,000 in FY11. Water charges are based on consumption of water. Average residential customers ($35.30/month) will see a monthly increase of $1.13 in FY10, and an additional $1.17 in FY11. ALTERNATIVES: As suggested by the City Commission. Report compiled on August 12, 2009 Attachments: Resolution No. 4184 132 Page 1 of 3 COMMISSION RESOLUTION NO. 4184 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RATES FOR WATER SERVICE FOR THE CITY OF BOZEMAN. WHEREAS, the City Commission of the City of Bozeman, following notice and public hearing established a new Rate Schedule for the City of Bozeman’s Water Fund. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the new rates for water services, based on a 30-day month, shall become effective beginning with the bills due in September 2009 and September 2010 as follows, to wit: Section 1 – Metered Water Rates Current Effective Effective Water Sept. 1 Sept. 1 Rates 2009 2010 5/8"$12.60 13.00$ 13.42$ 1"$16.69 17.22$ 17.78$ 1 1/4"$20.92 21.59$ 22.28$ 1 1/2"$26.25 27.09$ 27.96$ 2"$38.18 39.40$ 40.66$ 3"$65.99 68.10$ 70.28$ 4"$105.84 109.23$ 112.72$ 6"$197.26 203.57$ 210.09$ 8"$311.89 321.87$ 332.17$ Residential & Low Income*$4.10 4.23$ 4.37$ Multi-Family $3.14 3.24$ 3.34$ Commercial & Com Spec $2.76 2.85$ 2.94$ Government & Govt Spec $2.86 2.95$ 3.05$ Montana State University $3.56 3.67$ 3.79$ First 0 - 7 HCF $2.05 2.12$ 2.18$ 8 - 15 HCF $2.20 2.27$ 2.34$ Over 15 HCF $2.60 2.68$ 2.77$ Multi-Family $1.57 1.62$ 1.67$ Commercial & Com Spec $1.38 1.42$ 1.47$ Government & Govt Spec $1.43 1.48$ 1.52$ Montana State University $1.78 1.84$ 1.90$ Residential & Low Income* * Metered, Single Family Only City of Bozeman Water Rates A. Meter Charge B. Minimum Charges - up to 200 Cubic Feet C. Consumption Charge - $/HCF 133 Page 2 of 3 Explanatory note: Each customer shall pay a minimum monthly bill which includes applicable amount according to meter size (A) plus the minimum water charge (B). For water consumed in excess of 200 cubic feet, a customer shall pay the additional commodity charge (C). Section 2 – Flat Rate Customers Current Effective Effective Water Sept. 1 Sept. 1 Rates 2009 2010 Single Family, Unmetered $55.05/month $56.81/month $58.63/month City Park Irrigation $1,541/acre/year $1,590/acre/year $1,641/acre/year Fire Protection $132,035 Annually $136,260 Annually $140,620 Annually Bulk, non-potable for construction use $3.05/1,000 gallons $3.15/1,000 gallons $3.25/1,000 gallons Bulk, non-potable water is only available at the City Shops complex and is subject to a $5.00 minimum purchase. City of Bozeman Unmetered Water Rates Section 3 – Low Income Rate Assistance Effective on the September 2007 billing Customers who apply for and qualify under the State’s Low Income Property Tax Assistance Program, as set forth in Section 15-6-134 MCA, will receive a credit equal to their monthly water service charge listed above. Section 4 – Billing Procedures Charges for water services under this schedule shall be made a part of the current monthly water bill, to be shown by separate item on such bill. Separate payment of either the charge for the water or the charge for the wastewater will not be accepted with prior approval of the Director of Finance. Both charges must be paid at the same time; partial payments will be applied to the wastewater charge first, with any remainder being applied to the water charge. Charges for water used and wastewater service charges become due and payable upon receipt of the bill. If any bill is not paid on or before the fifteenth day of that month, it will then become delinquent; and if not paid in full by the fifteenth day of the following month, water service to the premises involved may be discontinued (shut-off), after a ten- day written notice. A charge of twenty five dollars ($25.00) shall be made for any account requiring written shut-off notice. An additional charge of twenty-five dollars ($25.00) during regular business hours or seventy-five dollars ($75.00) during non- business hours shall be made for reinstating a water service which has been discontinued for non-payment of water and/or wastewater service charges. Section 5 – ACH Incentive 134 Page 3 of 3 For those customers who choose the automatic clearing house (ACH) payment option, a one dollar ($1.00) discount will be taken from the total utility bill (total of water, sewer, garbage). Bills will be mailed by the first working day of the month; with the automatic payment being deducted on the 15th of the following month. Section 6 – Late Fee For those accounts that become delinquent, a 1.5 percent (1.5%) late fee will be assessed on the next bill. The minimum late fee shall be $1.00. Section 7 – Protests In cases where water service charges under this schedule are claimed to be unfair, unreasonable, or not in proportion to charges made to other water customers, the person or persons against whom such charges are made may apply to the City Manager for an adjustment, stating the circumstances. The City Manager, or his designated representative, may make such adjustment of the water charges as is deemed necessary, fair and equitable. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 17th day of August, 2009; and effective beginning with that billing period which will first appear on the September 2009 water billing. __________________________________ KAAREN JACOBSON Mayor ATTEST: _______________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 135