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HomeMy WebLinkAboutApprove Resolution No. 4347, Amendment to Resolution 4327, amending the Bulk Water Rate Page 1 of 2 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Stacy Ulmen, City Clerk Anna Rosenberry, Finance Director SUBJECT: Resolution No. 4347, Amendment to Resolution No. 4327, amending the Bulk Water Rate amount within Section 2-Flat Rate Customers due to an administrative error in the 2009 Water Rate Resolution No. 4184. MEETING DATE: Monday, October 3, 2011 AGENDA ITEM TYPE: Consent Item RECOMMENDATION: Approve Resolution No. 4347, Amendment to Resolution No. 4327, amending the Bulk Water Rate, non-potable for construction use amount within Section 2-Flat Rate Customers to Current Water Rates at $5.05, Effective September 1, 2011 to $5.28 and Effective September 1, 2012 to $5.52. BACKGROUND: It was discovered by staff that on August 17, 2009 the City Commission approved amending the proposed bulk water rate to $4.05/1,000 gallons in FY10 and $5.05 in FY11. Unfortunately, the version of the Resolution that was signed included the wrong figures. Due to these figures not being correct, this affected the rate that was included in the 2011 Water Rate Resolution No. 4327 for bulk water sales. The 2009 figure amounts should have increased by 4.5% on September 1, 2011 with a final total of: $5.28 and 4.5% on September 1, 2012 with a final total of: $5.52. Therefore Section 2-Flate Rate Customers is proposed to be corrected as follows: Because this item does not pertain to utility-system customers (it is for water sold to fill water tanks most often) and because the notices for Resolution No. 4327 were stated in the form of “an 30 Page 2 of 2 increase over current rates”, staff believes that additional noticing, other than the published agenda to make this correction is not needed. This is strictly an administrative change as the correct figures have all been properly passed and approved by the City Commission in previous action as listed in the attached set of minutes. UNRESOLVED ISSUES: None FISCAL EFFECTS: The amounts charged to customers at the City’s water fill station have been in accordance with the Commission’s intent – and not the amounts included in the erroneous Resolutions. When the error was discovered a few days prior to August 8, 2011, we held off implementing the Sept 1, 2011 rate. With the adoption of this correcting resolution, we will increase the fill station rate to $5.28/1,000 gallons. The City sells approximately 1.5M gallons of water through its water fill station each year, generating over $7,500/year. The largest users of bulk water are city departments, contractors, and homeowners outside the city limits. The increase in revenue from $5.05/1,000 gallons to $5.28/1,000 gallons is approximately $345 per year. ALTERNATIVES: none. Attachments: Proposed Resolution No. 4347 Minutes from August 8, 2011 Resolution No. 4327 Staff Report from August 17, 2009 Minutes from August 17, 2009 Resolution No. 4184 Report compiled on: September 21, 2011 31 COMMISSION RESOLUTION NO. 4347 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING RESOLUTON NO. 4327, AMENDING THE BULK WATER RATE, NON-POTABLE FOR CONSTRUCTION USE AMOUNT WITHIN SECTION 2-FLAT RATE CUSTOMERS TO CURRENT WATER RATES TO REFLECT PRIOR ACTION BY THE CITY COMMISSION WHEREAS, the City Commission of the City of Bozeman, on August 17, 2009 took action to approve Resolution No. 4184; and WHEREAS, the City Commission of the City of Bozeman approved amending the bulk water rate to $4.05/1,000 gallons in FY10 and $5.05/1,000 gallons in FY11 in conjunction with the approval of Resolution No. 4184; and WHEREAS, the change to the bulk water rates was not reflected in the version of Resolution No. 4184 that was signed by the Mayor, City Clerk and City Attorney; and WHEREAS, the error has not since been corrected and therefore affected the rate that was included in Resolution No. 4327 that was approved by the City Commission on August 8, 2011; and WHEREAS, staff has recognized this error and has corrected the rates that were previously approved by the Commission on August 17, 2009 within Resolution No. 4184 and August 8, 2011 within Resolution No. 4327 as follows: ; and WHEREAS: Because this correction is administrative and does not pertain to utility-system customers and because the notices for Resolutions No. 4184 and 4327 were stated in the form of “an increase over current rates,” notice provided in the published agenda is sufficient to make this correction. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that this Resolution serves as an administrative process of correcting the error to the bulk water rates as provided in Resolution No. 4184 and 4327. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 3rd day of October, 2011. ________________________________________ JEFFREY K. KRAUSS Mayor ATTEST: ____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ____________________________________ GREG SULLIVAN City Attorney 34 35 36 37 38 39 40 41 42 43 44 45