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Home My WebLink AboutA5. Res 4627 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director Chris Kukulski, City Manager SUBJECT: Resolution No. 4627 – Wastewater Rates MEETING DATE: August 17, 2015 RECOMMENDATION: Adopt Resolution No. 4627 which includes a 3% increase to Wastewater Rates effective on September 1, 2015 and a 3% increase on September 1, 2016. BACKGROUND: During the budget development process, the Commission considered increases to wastewater rates. The Approved Budget for Fiscal Year (FY) 2016 included proceeding with Wastewater Rate increases of 3% in FY16 and 3% in FY17. These amounts were the result of an update to our 5-Year Comprehensive Wastewater Rate study and information presented to the Commission during budget discussions and hearings in June. The Rate study was updated to include a number of the new Wastewater Master Plan capital projects that were a part of the Master Plan adopted this spring. A copy of the updated rate study can be found under Water & 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. 224 The 5-year rate model shows these increases to bring in approximately $221,000 in FY16 and $455,760 in FY17, 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, 2015 bills; and, by an additional 3% on the September 1, 2016 bills. To summarize their effect on Average Residential Customers: Report compiled on Aug 10, 2015 Attachments: Resolution No. 4627 Wastewater Rates FY16 FY17 Average Residential Customer – Consumption of 10 HCF/month Monthly Increase Annual Increase Monthly Increase Annual Increase Wastewater (Sewer) Services $1.40 $16.80 $1.44 $17.28 225 Page 1 of 4 COMMISSION RESOLUTION NO. 4627 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; and 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: Section 1 – Metered Customers City of Bozeman Wastewater Rates Current Effective Effective Wastewater 1-Sep 1-Sep Rate 2015 2016 A. Service Charge Residential $17.56 $18.09 $18.63 Multi-Family $18.00 $18.54 $19.10 Commercial $18.00 $18.54 $19.10 Government $18.00 $18.54 $19.10 Montana State University $18.00 $18.54 $19.10 Industrial $46.96 $48.37 $49.82 B. Volume Charge- $/HCF Residential $2.90 $2.99 $3.08 Low-Income $2.90 $2.99 $3.08 Multi-Family $2.98 $3.07 $3.16 Commercial $2.98 $3.07 $3.16 Government $2.98 $3.07 $3.16 Montana State University $2.98 $3.07 $3.16 Industrial $7.15 $7.36 $7.59 226 Resolution 4627, Establishing Rates for Wastewater (Sewer) Service Page 2 of 4 C. Charges for Extra Strength Waste 1. Pounds of BOD up to 830 lbs per day. $0.283/lb $0.291/lb $0.299/lb 2. Pounds of BOD in excess of 830 lbs per day. $0.406/lb $0.418/lb $0.430/lb 3. Peak BOD Demand Charge for Pounds of BOD in excess $0.358/lb $0.368/lb $0.379/lb of 830 lbs per day, highest monthly peak day. 4. Pounds of SS in excess of 350 mg/l per day. $0.279/lb $0.287/lb $0.295/lb 5. Pounds of Phosphorus in excess of 5.0 mg/l per day. $4.670/lb $4.810/lb $4.954/lb 6. Pounds of Nitrogen in excess of 20 mg/l per day. $0.424/lb $0.436/lb $0.449/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 2015 billing Monthly Billing and Customer Charges Current Wastewater Rate Effective Sept. 1, 2015 Effective Sept. 1, 2016 All Unmetered Customers $36.91/month $38.02/month $39.16/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 227 Resolution 4627, Establishing Rates for Wastewater (Sewer) Service Page 3 of 4 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 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 – 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. 228 Resolution 4627, Establishing Rates for Wastewater (Sewer) Service Page 4 of 4 Section 7 – 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. 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, 2015; and effective beginning with that billing period which will first appear on the September 2015 wastewater billing. ____________________________________ JEFFREY K. KRAUSS Mayor ATTEST: ________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 229