HomeMy WebLinkAbout08-13-07_Resolution No_ 4043, Wastewater Rates_11
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4043 – Wastewater Rates
MEETING DATE: August 13, 2007
BACKGROUND: Attached is Resolution 4043 that adopts wastewater rates for the next two
years. These rates are based on the City’s recently adopted Comprehensive Wastewater Rate
study. A copy of the study can be found online at http://www.bozeman.net/finance/budget.aspx.
For residential customers, wastewater rates would increase a maximum of 2.4% effective
September 1, 2007 and an additional 9% effective September 1, 2008;
For our one industrial customer, who is pursuing a plan to treat their waste outside of the City’s
system, the volume charge and surcharges listed in the resolution would apply. Their rates
would increase approximately 174% effective September 1, 2007 and an additional 9% effective
September 1, 2008.
For commercial & all other customers, rates would increase 5% effective September 1, 2007 and
an additional 9% effective September 1, 2008.
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RECOMMENDATION: Adopt Resolution No. 4043 which outlines wastewater rates
effective on September 1, 2007 and September 1, 20008.
FISCAL EFFECTS: This increase is estimated to generate approximately $223,000 in
FY2008, and $655,000 in FY2009 for the Wastewater fund.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director
Chris A. Kukulski, City Manager
Report compiled on August 6, 2007
Attachments: none
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COMMISSION RESOLUTION NO. 4043
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 2007 as follows, to wit:
Section 1 – Metered Customers
City of Bozeman
Wastewater Rates Effective Effective
Sept. 1 Sept. 1
2007 2008
A. Service Charge
Residential $11.17 $12.13
Multi-Family $11.41 $12.44
Commercial $11.41 $12.44
Government $11.41 $12.44
Montana State University $11.41 $12.44
Industrial $27.36 $32.44
B. Volume Charge - $/HCF
Residential $1.85 $2.01
Low Income $1.85 $2.01
Multi-Family $1.89 $2.06
Commercial $1.89 $2.06
Government $1.89 $2.06
Montana State University $1.89 $2.06
Industrial $4.53 $4.94
C. Charges for Extra Strength Waste
1. Pounds of BOD up to
830 lbs per day. $0.180/lb $0.196/lb
2. Pounds of BOD in
excess of 830 lbs per day. $0.258/lb $0.281/lb
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3. Peak BOD Demand
Charge for Pounds of BOD
in excess of 830 lbs per
day, highest monthly
peak day. $0.223/lb $0.243/lb
4. Pounds of SS in excess
of 250 mg/l per day. $0.177/lb $0.193/lb
5. Pounds of Phosphorus
in excess of 5.0 mg/l per
day. $2.960/lb $3.226/lb
6. Pounds of Nitrogen in
excess of 20 mg/l per day. $0.269/lb $0.293/lb
* For service dates of April through October, based on average of November through
March 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 2007 billing
Monthly Billing and
Customer Charges
All Unmetered Customers $25.50/month
Section 3 – Special Charges
Effective on the September 2007 billing
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 – $4.20/month
1” – $5.46/month
1 ½” – $7.98/month
2” - $11.34/month
2. Users of the Laurel
Glen Lift Station
All Customers, based on
meter size
5/8” meter – $2.27/month
1” – $2.96/month
1 ½” – $4.32/month
2” - $6.14/month
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Section 4 – 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 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
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.
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PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at
a regular session thereof held on the 13th day of August 2007, and effective beginning
with that billing period which will first appear on the September 2007 wastewater billing.
__________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
__________________________________
CYNTHIA JORDAN DELANEY
Acting City Clerk
APPROVED AS TO FORM:
__________________________________
PAUL J. LUWE
City Attorney
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