HomeMy WebLinkAboutA3. Res 4590, Stormwater Service
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
SUBJECT: COMMISSION RESOLUTION NO. 4590 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RATES FOR STORMWATER SERVICE FOR THE CITY OF BOZEMAN.
MEETING DATE: April 13, 2015
AGENDA ITEM TYPE: Action
RECOMMENDATION: After holding the public hearing and considering public comment, adopt Resolution No. 4590 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RATES FOR STORMWATER SERVICE
FOR THE CITY OF BOZEMAN.
BACKGROUND: Commission heard presentations and took public comment regarding the revision of stormwater rates and charges to include a flat rate, a variable rate, and a rate credit on April 21, 2014 and February 23, 2015. The Commission voted to direct staff to proceed with the
hearings for the proposed rate model described on February 23rd. Tonight is the time and place
for public comments and adoption of the new rate model.
The materials from the February 23rd meeting can be found at:
http://weblink.bozeman.net/WebLink8/0/doc/78945/Electronic.aspx
Currently, we have one charge for stormwater services for each property in town that has a water
meter; the charge is based on meter-size. Most customers pay $1.75/month. This Resolution will increase that charge to:
1. Effective May 2015 (due in June 2015): Flat Charge to all properties of $3.23 per
month.
2. Plus, Effective December 2015 (due in January 2016):
A. Variable Charge of $2.68 per month for each Equivalent Residential Unit.
This Charge will apply to ALL properties, including commercial, industrial,
government, etc; and,
B. Credit for Properties with Existing Stormwater Infrastructure – select properties shall receive a monthly credit (deduction) equal to $1.20 per ERU if determined to have or directly contribute to stormwater infrastructure
meeting current engineering design standards.
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As described in detail in the February 23rd materials, these increased charges are necessary in
order to progress our Stormwater Utility out of its initial “start-up” phase and in to regular
operations under the Bronze plan.
Unlike previous rate resolutions that incorporate multi-year increases, there is no future-year
increase included in this resolution. We will be implementing this resolution over the next 8
months (spanning 2 fiscal years.) After that time, we expect to know more about the system’s
charges and credit scenario and can come back with any changes that might be necessary, including inflationary adjustments.
UNRESOLVED ISSUES: None.
ALTERNATIVES: Do not adopt the increased Stormwater rates, or make changes to those that are proposed.
FISCAL EFFECTS: Below is a table of the changes in Stormwater charges for a number of
properties, including a Single-Family household, which is the most prevalent property type.
Under the examples, the Single-Family household is analyzed with and without a HOA constructed stormwater system (allowing for the credit.)
The Flat Rate portion will be effective on May 2015 stormwater bills. The Variable Rate and
“Credit Value” will become effective on December 2015 stormwater bills.
Stormwater Fund: Our current Stormwater charges add approximately $22,000 in revenue to
the Fund each month. Under the new model, approximately $100,000 will be added each month, once fully implemented. We will be working to develop a budget that can address this phased
implementation of charges in FY16.
Rate Model Cash Flows – Based on Adoption
Resolution No. 4590 Monthly Revenue Annual Revenue FY15 Revenue FY16 Revenue
Base Rate $ 37,500 $ 450,000 $ 75,000 $ 450,000
Variable Rate $ 79,167 $ 950,000 $ - $ 475,000
Credit $ (16,667) $ (200,000) $ - $ (100,000)
$ 100,000 $ 1,200,000 $ 75,000 $ 825,000
Attachments: Resolution No 4590
Report compiled on: April 1, 2015
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Resolution 4590 Stormwater Rates Page 1 of 4
COMMISSION RESOLUTION NO. 4590
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RATES FOR STORMWATER SERVICE FOR THE CITY OF BOZEMAN.
WHEREAS, the City Commission of the City of Bozeman, has created a
Stormwater Utility by the adoption of Ordinance No. 1831; and
WHEREAS, the Commission heard presentations and took public comment
regarding the revision of stormwater rates and charges to include a flat rate, a variable
rate, and a rate credit on April 21, 2014 and February 23, 2015; and
WHEREAS, The City’s average single-family residential property has 2,700
square feet of impervious area with limited variation between individual residential
properties and the average. The establishment of an Equivalent Residential Unit square
footage of 2,700 square feet for stormwater charges is appropriate; and
WHEREAS, certain properties that are connected to stormwater infrastructure
have mitigated some of the costs of stormwater service and should receive a monthly
credit; and
WHEREAS, the City Commission of the City of Bozeman, following notice and
public hearing established a new Rate Schedule for the Stormwater Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the new rates for stormwater services shall be as follows:
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Resolution 4590 Stormwater Rates Page 2 of 4
Section 1 – Flat Rate Charge
All properties located within the city limits with a city water meter installed shall be billed a flat rate charge of $3.23 per month for each water meter service.
Properties within the city limits that do not have water meters may be assigned the flat
rate charge, if it is determined that their property contains impervious area.
Based on a 30-day month, this charge shall become effective beginning with the bills
mailed in May 2015 and due in June 2015.
Section 2 – Establishment of the Impervious Area Equivalent Residential Unit (ERU) An Equivalent Residential Unit (ERU) size of 2,700 square feet of impervious area is
hereby adopted.
A. Regardless of actual size, each single-family residential lot is assigned an ERU = 1.0.
B. Each multi family, commercial, business, government or other property will be
assigned a number of ERUs by dividing the amount of impervious area by 2,700
square feet. C. At no point will any property be assigned an ERU of less than 1.0.
The records of impervious area will be made and kept by the City’s Stormwater
Department.
Section 3 – Variable Rate Charge All properties located within the city limits shall be billed a variable rate charge of $2.68
per month for each Equivalent Residential Unit, as determined under Section 2.
Based on a 30-day month, this charge shall become effective beginning with the bills
mailed in December 2015 and due in January 2016.
Section 4 – Credit for Properties with Existing Stormwater Infrastructure Select properties located within the city limits shall receive a monthly credit (deduction)
equal to $1.20 per ERU if determined to have or directly contribute to stormwater
infrastructure meeting current engineering design standards.
Based on a 30-day month, this charge shall become effective beginning with the bills mailed in December 2015 and due in January 2016.
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Resolution 4590 Stormwater Rates Page 3 of 4
The records of stormwater infrastructure and determination of any associated credit will
be made and kept by the City’s Stormwater Department.
Section 5 - Low Income Charge 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 stormwater flat rate charge listed above.
Section 6 – Billing Procedures
Explanatory note: Except as noted in Section 5, each customer shall pay a minimum monthly bill which includes the flat rate charge (Section 1) plus a variable rate charge (Section 3). For properties that have or directly contribute to stormwater infrastructure
meeting current engineering design standards, a Credit will be granted.
Charges for stormwater services under this schedule shall be made a part of the current monthly water bill, to be shown by separate items on such bill. Separate payment of either the charge for the water, wastewater, or stormwater service will not be accepted
without prior approval of the Director of Administrative Services.
Charges for stormwater service 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, wastewater and/or stormwater service charges.
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 stormwater service charges under this schedule are claimed to be unfair,
unreasonable, or not in proportion to charges made to other stormwater 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 stormwater charges as is deemed
necessary, fair and equitable.
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Resolution 4590 Stormwater Rates Page 4 of 4
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana,
at a regular session thereof held on the 13th day of April, 2015; and effective beginning
with that billing period which will first appear on the May 2015 stormwater billing.
___________________________________
JEFFREY K. KRAUSS Mayor
ATTEST:
____________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
___________________________________ GREG SULLIVAN City Attorney
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NOTICE
HEARING ON THE ADOPTION OF COMMISSION RESOLUTION NO. 4590
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RATES FOR STORMWATER SERVICE FOR THE CITY OF BOZEMAN.
NOTICE IS HEREBY GIVEN, That said Commission Resolution No. 4590 is now on
file in the office of the Clerk of the Commission of the City of Bozeman, subject to
inspection of all persons interested, for a period of fifteen (15) days from the date of first
publication; that Monday, April 13, 2015, at 6:00 p.m. at a regular session of the
Commission of the City of Bozeman, at City Hall in the Commission Room, 121 N
Rouse, Bozeman, has been designated as the time and place when and where the
Commission will hear and pass upon any and all objections that may be made to the final
passage and adoption of Commission Resolution No. 4590; and that said Resolution will
be finally passed and adopted at said regular session of said Commission, subject to such
corrections and amendments that may be made upon objections made and filed with the
City Clerk as provided by law.
Under Commission Resolution No. 4590, an increase in Stormwater Rates for all
customer classes is proposed. Changes include:
1. On June 1, 2015, all customers will see the monthly base-rate increase from
$1.75 to $3.23 per month.
2. And, in addition to the base-rate, on January 1, 2016, all customers will be
charged $2.68 per Equivalent Residential Unit (ERU) per month.
Commercial, Governmental, and other customer classes will be charged for
their property’s proportional number of ERU, based on impervious area of
their lot.
3. Some customers will receive a credit to the monthly charges, based on the
level of service provided by their existing Stormwater infrastructure.
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Some customers will see a significant increase in monthly Stormwater charges from this
proposed rate change. Specific questions about your property can be directed to the
Stormwater Program Coordinator, Kyle Mehrens, (406)582-2270,
kmehrens@bozeman.net
Dated this 26th day of March, 2015.
___________________________
Stacy Ulmen
City Clerk
Legal Ad
Publish: Sunday, March 29, 2015
Sunday, April 5, 2015 **DISPLAY AD**
Sunday, April 12, 2015
Notice: Water Bills, March 26, 2015
Montana Consumer Council
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