I1. ROI 5962, Water-Wastewater Rates and Regulation Public HearingCITY OF
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
Cc: Charles Harball, City Attorney
From: Susie Turner, Public Works Director
Subject: Resolution No. 5962 - Resolution of Intent and Call for Public Hearing on
Amendments to the Water and Sewer Rate Schedules and Regulations
Meeting Date: February 3, 2020
The Resolution of Intent to adjust the Water and Sewer Rate Schedules and Regulations have
been placed on the City Council Agenda for the February 3, 2020 regular meeting. This matter
came before the City Council for three work sessions following a water and sewer rate study
performed by HDR Engineering. The rate study incorporates a revenue requirement analysis,
cost of service analysis, and development of corresponding rate structures to generate adequate
funds in order to:
• Maintain the same quality of service
• Fund capital projects —rehabilitation, replacement, regulatory, and new growth projects
• Fund an equipment replacement plan
• Maintain financial policy targets, i.e. reserve and operating balances, debt service
coverage
The proposed regulation amendments reflect the proposed rate schedule adjustments and updates
the payment requirements for the monthly fixed and meter charge.
Pursuant to the statutory requirements, the Council must make all evidence to be relied upon in
its determination available to the public and set the matter for a public hearing. The hearing,
pursuant to MCA 69-7-111 must be set no earlier than 28 days after the first publication.
Therefore, the date of the hearing set by this resolution of intent is March 2, 2020.
This resolution is limited to advising the public regarding Council's intent to act upon the
proposed water and sewer rate schedules and regulation amendments, making the material
available to the public, and seeking public comment at the hearing. Action by the Council shall
take place thereafter at a subsequent council meeting.
RECOMMENDATION: It is recommended that Council approve Resolution 5962, a resolution
of intent setting a date for a public hearing on a proposal to adopt increases in the fees,
schedules, rates, charges, and classifications imposed on the customers of the City of Kalispell
water and sewer utility and to adopt certain amendments to the regulations of the city water and
sanitary sewer utilities.
201 1' Avenue E IPhone (406)758-7720
PO Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 www.kalispell.com
ALTERNATIVES: Council can elect to amend or reject the resolution.
ATTACHMENTS: Resolution No. 5962 - Resolution of Intent
Water and Sewer Rate Adjustment Legal Notice
RESOLUTION NO.5962
A RESOLUTION SETTING A DATE FOR PUBLIC HEARING ON A PROPOSAL TO ADOPT
INCREASES IN THE FEES, SCHEDULES, RATES, CHARGES, AND CLASSIFICATIONS
IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL WATER AND SEWER
UTILITY AND TO ADOPT CERTAIN AMENDMENTS TO THE REGULATIONS OF THE
CITY WATER AND SANITARY SEWER UTILITIES.
WHEREAS, the City of Kalispell conducted a utility rate study to determine whether or not the
current structure of water and sewer/wastewater utility rates is adequate to fund
necessary operations of the water and sewer/wastewater enterprises as well as to meet
the financial obligations incurred for previous necessary infrastructure replacements
and capacity increases to the system; and
WHEREAS, based upon this utility rate study, the City Council has determined that it must consider
implementing the terms of the proposed seven-year Utility Rate Plan recommended by
the study and to therefore amend the existing water and sewer regulations to reflect the
changes in the fees, schedules, rates, and charges necessary to collect sufficient revenue
to cover the planned operating needs of the City's Water and Sewer/Wastewater
System, to fund rehabilitation and replacement, thereby sustaining the existing quality
of service, and to fund projects to meet new growth demands, and to maintain the target
reserve balances of the City's Water and Sewer/Wastewater System; and
WHEREAS, the City Council is therefore considering the adoption of the fees, schedules, rates,
charges and classifications of the city's water and sewer utility, as set forth in Exhibit
"A"; and
WHEREAS, prior to initiating any increase in the fees, schedules, rates, charges, and classifications,
and prior to any changes in water and sewer regulations, the City shall, pursuant to
Section 69-7-111, Montana Code Annotated, hold a public hearing on the matter after
giving due and proper notice of said hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL,
AS FOLLOWS:
SECTION 1. The City Council of the City of Kalispell shall hold a public hearing on the
proposed water and sewer utility increases and the proposed changes to the water
and sewer regulations, on the 2nd day of March, 2020, at 7:00 p.m., in the Council
Chambers, 201 First Avenue East, Kalispell, Montana.
SECTION 2._ The City Clerk and City Attorney are hereby authorized and directed to make,
publish, and distribute notices of said Public Hearing in conformity with Section
69-7-111, MCA.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 3RD DAY OF FEBRUARY, 2020.
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Mark Johnson
Mayor
EXHIBIT "A"
Present and Proposed Monthly Sewer Rates
Proposed
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Present
49.4%
6.5%
6.5%
6.5%
6.5%
3.0%
3.0%
Fixed Charge (per meter/month)
$8.44
$12.61
$13.43
$14.30
$15.23
$16.22
$16.71
$17.21
Volume Charge ($/1,000 Gal.)
$4.78
$7.14
$7.60
$8.09
$8.62
$9.18
$9.46
$9.74
Evergreen (Treatment Only)
18.5%
6.5%
6.5%
6.5%
6.5%
3.0%
3.0%
Fixed Charge (per service
$6.22
$7.37
$7.85
$8.36
$8.90
$9.48
$9.76
$10.05
connection/month)
Volume Charge ($/1,000 Gal.)
$2.50
$2.96
$3.15
$3.35
$3.57
$3.80
$3.91
$4.03
Strength Surcharge - Over Limit > than (mg/L) of:
Bio-chemical Oxygen Demand ($/Lbs) >250
$0.24
$0.16
$0.17
$0.18
$0.19
$0.20
$0.21
$0.22
Suspended Solids ($/Lbs) >250
0.22
0.71
0.75
0.80
0.85
0.91
0.94
0.97
Phosphorus ($/Lbs) > 7
New
6.10
6.49
6.91
7.36
7.84
8.08
8.32
Nitrogen ($/Lbs) > 40
New
1.25
1.33
1.42
1.51
1.61
1.66
1.71
Present and Proposed Monthly Sewer
Rate Bill Comparisons
Proposed
Present
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
0 gals
$8.44
$12.61
$13.43
$14.30
$15.23
$16.22
$16.71
$17.21
2,000 gals
18.00
26.89
28.63
30.48
32.47
34.58
35.63
36.69
4,000 gals
27.56
41.17
43.83
46.66
49.71
52.94
54.55
56.17
6,000 gals
37.12
55.45
59.03
62.84
66.95
71.30
73.47
75.65
10,000gaIs
56.24
84.01
89.43
95.20
101.43
108.02
111.31
114.61
Present and Proposed Monthly Water Rates
Proposed
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Present
16.5%
10.0%
9.5%
9.5%
3.0%
3.0%
3.0%
Residential & Commercial
Fixed Charge (per meter/month)
$7.50
$8.74
$9.61
$10.52
$11.52
$11.87
$12.23
$12.60
Meter Size (per meter/month)
3/4"
$0.80
$1.10
$1.21
$1.32
$1.45
$1.49
$1.53
$1.58
1"
1.38
1.69
1.86
2.04
2.23
2.30
2.37
2.44
1 1/2"
2.68
3.09
3.40
3.72
4.07
4.19
4.32
4.45
2"
3.75
4.45
4.90
5.37
5.88
6.06
6.24
6.43
3"
14.10
10.29
11.32
12.40
13.58
13.99
14.41
14.84
4"
19.88
14.24
15.66
17.15
18.78
19.34
19.92
20.52
6"
22.64
22.64
24.90
27.27
29.86
30.76
31.68
32.63
Hosting Fee (per metering system)Ill
0.89
0.89
0.89
0.89
0.89
0.89
0.89
Consumption Charge ($/1,000 Gal.)
$2.43
$2.48
$2.73
$2.99
$3.27
$3.37
$3.47
$3.57
Sprinkling
Consumption Charge ($/1,000 Gal.)
$1.55
$2.48
$2.73
$2.99
$3.27
$3.37
$3.47
$3.57
Private Fire Protection
Monthly Service Connection
2"
$24.80
$24.80
$27.28
$29.87
$32.71
$33.69
$34.70
$35.74
3"
29.25
29.25
32.18
35.24
38.59
39.75
40.94
42.17
4"
32.50
32.50
35.75
39.15
42.87
44.16
45.48
46.84
6"
40.10
40.10
44.11
48.30
52.89
54.48
56.11
57.79
8"
51.00
51.00
56.10
61.43
67.27
69.29
71.37
73.51
101,
70.35
70.35
77.39
84.74
92.79
95.57
98.44
101.39
Water Sold from Hydrants to Trucks
Consumption Charge ($/1,000 Gal.)
$4.14
$4.82
$5.30
$5.80
$6.35
$6.54
$6.74
$6.94
*Meter Hosting fee would be added after installation of a metering system and meter.
*Out of City rate 1.25 times the in -City rate.
Present and Proposed Monthly Water Rate Bill Comparisons
Proposed
Present
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Residential & Commercial
0 gals
$8.30
$9.84
$10.82
$11.84
$12.97
$13.36
$13.76
$14.18
2,000 gals
13.16
14.80
16.28
17.82
19.51
20.10
20.70
21.32
4,000 gals
18.02
19.76
21.74
23.80
26.05
26.84
27.64
28.46
6,000 gals
22.88
24.72
27.20
29.78
32.59
33.58
34.58
35.60
10,000gaIs
32.60
34.64
38.12
41.74
45.67
47.06
48.46
49.88
Sprinkling
0 gals
$8.30
$9.84
$10.82
$11.84
$12.97
$13.36
$13.76
$14.18
2,000 gals
11.40
14.80
16.28
17.82
19.51
20.10
20.70
21.32
4,000 gals
14.50
19.76
21.74
23.80
26.05
26.84
27.64
28.46
6,000 gals
17.60
24.72
27.20
29.78
32.59
33.58
34.58
35.60
10,000gaIs
23.80
34.64
38.12
41.74
45.67
47.06
48.46
49.88
CITY OF KALISPELL
NOTICE OF PROPOSED WATER AND SEWER RATE INCREASE
A proposal to increase rates of the water and sewer utilities and amend the water and sewer
regulations to reflect the changes has been presented to Kalispell City Council. It is the intent of the
City Council to consider the adjustment of the water and sewer utility rates, as presented in the water
and sewer rate study performed by its consultant HDR Engineering.
A Public Hearing on the proposed rate increase and regulation amendments will be held
Monday, March 2, 2020, in the Council Chambers of City Hall, 201 1st Avenue East, Kalispell,
Montana, at 7:00 P.M. The increase in water and sewer rates and the amended water and sewer
regulations will be effective June 1, 2020 (with the July 2020 billing cycle).
Any person concerned with the proposed water and sewer rate increases and the amended
water and sewer regulations may appear at this hearing and make oral statements or present same in
writing. Written comments may also be submitted for Council consideration by delivering the same
to the City Clerk at 201 First Ave. E., Kalispell, MT 59901 or at citycouncil(c�r�,kalispell. com prior to
the hearing.
The City will also be hosting an Open House to answer any questions on the proposed rate
increases on Tuesday, February 18, 2020 from 11:00 a.m. - 1:30 p.m. and 5:00 p.m. - 6:30 p.m. in
the Council Chambers at City Hall, or you may call (406) 758-7720.
The following tables provide the proposed increases to the water and sewer rates, and
example bill comparisons.
Present and Proposed Monthly Sewer Rates
Proposed
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Present
49.4%
6.5%
6.5%
6.5%
6.5%
3.0%
3.0%
Fixed Charge (per meter/month)
$8.44
$12.61
$13.43
$14.30
$15.23
$16.22
$16.71
$17.21
Volume Charge ($/1,000 Gal.)
$4.78
$7.14
$7.60
$8.09
$8.62
$9.18
$9.46
$9.74
Evergreen (Treatment Only)
18.5%
6.5%
6.5%
6.5%
6.5%
3.0%
3.0%
Fixed Charge (per service
$6.22
$7.37
$7.85
$8.36
$8.90
$9.48
$9.76
$10.05
connection/month)
Volume Charge ($/1,000 Gal.)
$2.50
$2.96
$3.15
$3.35
$3.57
$3.80
$3.91
$4.03
Strength Surcharge - Over Limit > than (mg/L) of:
Bio-chemical Oxygen Demand ($/Lbs)>250
$0.24
$0.16
$0.17
$0.18
$0.19
$0.20
$0.21
$0.22
Suspended Solids ($/Lbs) >250
0.22
0.71
0.75
0.80
0.85
0.91
0.94
0.97
Phosphorus ($/Lbs) > 7
New
6.10
6.49
6.91
7.36
7.84
8.08
8.32
Nitrogen ($/Lbs) > 40
New
1.25
1.33
1.42
1.51
1.61
1.66
1.71
Present and Proposed Monthly Sewer
Rate Bill Comparisons
Proposed
Present
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
0 gals
$8.44
$12.61
$13.43
$14.30
$15.23
$16.22
$16.71
$17.21
2,000 gals
18.00
26.89
28.63
30.48
32.47
34.58
35.63
36.69
4,000 gals
27.56
41.17
43.83
46.66
49.71
52.94
54.55
56.17
6,000 gals
37.12
55.45
59.03
62.84
66.95
71.30
73.47
75.65
10,000 gals
56.24
84.01
89.43
95.20
101.43
108.02
111.31
114.61
Present and Proposed Monthly Water Rates
Proposed
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
Present
16.5%
10.0%
9.5%
9.5%
3.0%
3.0%
3.0%
Residential & Commercial
Fixed Charge (per meter/month)
$7.50
$8.74
$9.61
$10.52
$11.52
$11.87
$12.23
$12.60
Meter Size (per meter/month)
3/4"
$0.80
$1.10
$1.21
$1.32
$1.45
$1.49
$1.53
$1.58
1"
1.38
1.69
1.86
2.04
2.23
2.30
2.37
2.44
1 1/2"
2.68
3.09
3.40
3.72
4.07
4.19
4.32
4.45
2"
3.75
4.45
4.90
5.37
5.88
6.06
6.24
6.43
3"
14.10
10.29
11.32
12.40
13.58
13.99
14.41
14.84
4"
19.88
14.24
15.66
17.15
18.78
19.34
19.92
20.52
6"
22.64
22.64
24.90
27.27
29.86
30.76
31.68
32.63
Hosting Fee (per metering system)Ill
0.89
0.89
0.89
0.89
0.89
0.89
0.89
Consumption Charge ($/1,000 Gal.)
$2.43
$2.48
$2.73
$2.99
$3.27
$3.37
$3.47
$3.57
Sprinkling
Consumption Charge ($/1,000 Gal.)
$1.55
$2.48
$2.73
$2.99
$3.27
$3.37
$3.47
$3.57
Private Fire Protection
Monthly Service Connection
2"
$24.80
$24.80
$27.28
$29.87
$32.71
$33.69
$34.70
$35.74
3"
29.25
29.25
32.18
35.24
38.59
39.75
40.94
42.17
4"
32.50
32.50
35.75
39.15
42.87
44.16
45.48
46.84
6"
40.10
40.10
44.11
48.30
52.89
54.48
56.11
57.79
8"
51.00
51.00
56.10
61.43
67.27
69.29
71.37
73.51
101,
70.35
70.35
77.39
84.74
92.79
95.57
98.44
101.39
Water Sold from Hydrants to Trucks
Consumption Charge ($/1,000 Gal.)
$4.14
$4.82
$5.30
$5.80
$6.35
$6.54
$6.74
$6.94
Present and Proposed Monthly Water Rate Bill Comparisons
Proposed
Present
FY 2021
FY 2022
FY 2023
FY 2024 FY 2025
FY 2026
FY 2027
Residential & Commercial
0 gals $8.30
$9.84
$10.82
$11.84
$12.97 $13.36
$13.76
$14.18
2,000 gals 13.16
14.80
16.28
17.82
19.51 20.10
20.70
21.32
4,000 gals 18.02
19.76
21.74
23.80
26.05 26.84
27.64
28.46
6,000 gals 22.88
24.72
27.20
29.78
32.59 33.58
34.58
35.60
10,000gaIs 32.60
34.64
38.12
41.74
45.67 47.06
48.46
49.88
Sprinkling
0 gals $8.30
$9.84
$10.82
$11.84
$12.97 $13.36
$13.76
$14.18
2,000 gals 11.40
14.80
16.28
17.82
19.51 20.10
20.70
21.32
4,000 gals 14.50
19.76
21.74
23.80
26.05 26.84
27.64
28.46
6,000 gals 17.60
24.72
27.20
29.78
32.59 33.58
34.58
35.60
10,000gaIs 23.80
34.64
38.12
41.74
45.67 47.06
48.46
49.88
*Meter Hosting fee would be added after installation of a metering system and meter.
*Out of City rate 1.25 times the in -City rate.
Dated this 3rd day of February, 2020.
Aimee Brunckhorst, CMC
City Clerk
Publish: February 9, 2020
February 16, 2020
March 1, 2020