HomeMy WebLinkAboutHearing for Resolution 4454, Wastewater (sewer) Rates
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4454 – Wastewater Rates
MEETING DATE: July 22, 2013
RECOMMENDATION: Adopt Resolution No. 4454 which includes a 3% increase to
Wastewater Rates effective on September 1, 2013 and a 3% increase on September 1, 2014.
Special Information: The City advertised for rate increases to both the Water Rates and
Wastewater Rates for Fiscal Years 2014 & 2015, as required by law. After those notices were
published, during the Final Budget adoption, the Commission decided to not increase Water
Rates in Fiscal Year 2014. There will be no hearing on Water Rate increases tonight – there
will be no increases to Water Rates this year. The Commission did decide to proceed with
Wastewater Rate increases, as discussed below.
BACKGROUND: During the budget development process, the Commission considered
increases to wastewater rates. The Approved Budget for Fiscal Year (FY) 2014 included
proceeding with Wastewater Rate increases of 3% in FY14 and 3% in FY15. These amounts
were the result of an update to our 5-Year Comprehensive Wastewater Rate study, presented to
the Commission on June 24, 2013. A copy of the updated rate study can be found under Water
190
& Wastewater Rate Studies online at http://www.bozeman.net/Departments-
(1)/Finance/Budgets-and-Financials.
The rate increases are needed to support the operating, capital, and debt service budgets for the
Wastewater Fund, as well as provide adequate cash flow and reserves for our wastewater utility.
The 5-year rate model shows these increases to bring in approximately $201,000 in FY14 and
$413,000 in FY15, beyond our current rate levels.
ALTERNATIVES: As suggested by the Commission.
FISCAL EFFECTS Summary: All of the Metered and Unmetered Wastewater fees would be
increased by 3%, effective on the September 1, 2013 bills; and, by an additional 3% on the
September 1, 2014 bills. To summarize their effect on Average Residential Customers:
Report compiled on July 15, 2013
Attachments: Resolution No. 4454
Wastewater Rates FY14 FY15
Average Residential Customer –
Consumption of 10 HCF/month
Monthly
Increase
Annual
Increase
Monthly
Increase
Annual
Increase
Wastewater (Sewer) Services $1.32 $15.84 $1.36 $16.32
191
COMMISSION RESOLUTION NO. 4454
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ESTABLISHING RATES FOR WASTEWATER (SEWER) 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 Wastewater (Sewer)
Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the new rates for wastewater services, based on a 30-day month,
shall become effective beginning with the bills due in September 2013 and September
2014 as follows, to wit:
Section 1 – Metered Customers
City of Bozeman
Wastewater Rates Current Effective Effective
Wastewater Sept 1 Sept 1
Rate 2013 2014
A. Service Charge
Residential $16.55 $17.05 $17.56
Multi-Family $16.97 $17.48 $18.00
Commercial $16.97 $17.48 $18.00
Government $16.97 $17.48 $18.00
Montana State University $16.97 $17.48 $18.00
Industrial $44.26 $45.59 $46.96
B. Volume Charge- $/HCF
Residential $2.74 $2.82 $2.90
Low-Income $2.74 $2.82 $2.90
Multi-Family $2.81 $2.89 $2.98
Commercial $2.81 $2.89 $2.98
Government $2.81 $2.89 $2.98
Montana State University $2.81 $2.89 $2.98
Industrial $6.74 $6.94 $7.15
C. Charges for Extra Strength Waste
1. Pounds of BOD up to 830 lbs per day. $0.267/lb $0.275/lb $0.283/lb
2. Pounds of BOD in excess of 830 lbs per day. $0.383/lb $0.395/lb $0.406/lb
3. Peak BOD Demand Charge for Pounds of BOD in excess $0.337/lb $0.347/lb $0.358/lb
of 830 lbs per day, highest monthly peak day.
4. Pounds of SS in excess of 350 mg/l per day. $0.263/lb $0.271/lb $0.279/lb
5. Pounds of Phosphorus in excess of 5.0 mg/l per day. $4.402/lb $4.534/lb $4.670/lb
192
6. Pounds of Nitrogen in excess of 20 mg/l per day. $0.400/lb $0.412/lb $0.424/lb
* For service dates of May through November, based on average of December through
April metered usage.
Explanatory note: Each customer shall pay a minimum monthly bill which includes the
monthly charge (A) plus an additional charge (B). For extra strength waste, a customer shall additionally pay the extra strength charges (C).
Section 2 – Unmetered Customers
Effective on the September 2013 billing
Monthly Billing and
Customer Charges
Current
Wastewater
Rate
Effective
Sept. 1, 2013
Effective
Sept. 1, 2014
All Unmetered
Customers
$34.79/month $35.83/month $36.91/month
Section 3 – Special Charges
In certain cases, subdivisions and/or annexations have been approved on the condition that the associated properties fund the operation of specific capital within the wastewater
system, usually lift stations. These charges are made on an annual cost-recovery basis,
and are charged in addition to all other account charges.
1. Users of the Baxter
Meadows Lift Station
All Customers, based on
meter size
5/8” meter – $3.65/month
1” – $5.47/month
1 ½” – $18.23/month 2” - $29.17/month
3” – $58.34/month
2. Users of the Laurel Glen Lift Station All Customers, based on meter size 5/8” meter – $0.87/month 1” – $1.30/month
1 ½” – $4.33/month
2” - $6.93/month
3” – $13.86/month
3. Users of Cattail Creek
Lift Station
All Customers, based on
meter size
5/8” meter – $1.08/month
1” – $1.63/month
1 ½” – $5.42/month 2” - $8.67/month 3” – $17.33/month
4. Users of Loyal Gardens Lift Station All Customers, based on meter size 5/8” meter – $1.54/month 1” – $2.32/month
1 ½” – $7.72/month
2” - $12.36/month
3” – $24.71/month
193
5. 5. Users of Norton
Ranch Lift Station
All Customers, based on meter size 5/8” meter – $1.02/month 1” – $1.53/month 1 ½” – $5.10/month
2” - $8.16/month
3” – $16.33/month
Section 4 – Low Income Rate Assistance
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 wastewater service charge listed above.
Section 5 – Billing Procedures
Charges for wastewater 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 6 – ACH Incentive
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 7 – 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 8 – Protests
194
In cases where wastewater service charges under this schedule are claimed to be unfair,
unreasonable, or not in proportion to charges made to other wastewater 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 wastewater 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 22nd day of July, 2013; and effective beginning with that billing period which will first appear on the September 2013 wastewater billing.
________________________________________ Sean A. Becker, Mayor
ATTEST:
____________________________
Stacy Ulmen, CMC, City Clerk
APPROVED AS TO FORM:
__________________________________________
Greg Sullivan, City Attorney
195