5. Resolution 5483 - Calling for Public Hearing - Utility RatesT
City of Kalispell
Post Office Box 1997 -Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
TO: Mayor Tammie Fisher and City Council
FROM: Jane Howington, City Manager
SUBJECT: Resolution Calling for Public Hearing — Utility Rates
MEETING DATE: February 22, 2011
BACKGROUND: The purpose of this legislation is to authorize a public hearing on a proposal
to modify utility rates over a 5 -year period beginning with the present year (2010/11). The
proposed request for a public hearing is a result of recommended rate adjustments presented at a
work session held on Monday, February 14, 2011. During this work session, staff provided an
analysis of our current waste water rate structure; how the current methodology is not adequate
for revenues to meet expenditure, debt, and capital needs; and what staff recommends as a means
to resolve these issues.
In addition to adjustments to the waste water rates, staff also presented proposed rate adjustments
to the water base rate and to the solid waste rate. Council requested a comprehensive 5-year
utility rate plan and these recommendations, in addition to the waste water recommendations,
respond to this request.
PUBLIC HEARING PROCESS: The law requires adoption of rate changes to follow a
process whereby the local legislative body passes legislation calling for a public hearing. Public
notification is then provided via 3 published notices of the public hearing and a notice sent to all
utility customers. These notifications will be provided during the weeks of February 28, March
7, and March 14, 2011. The public hearing is planned for March 21, 2011 with the utility rate
recommendation presented for council action on April 4, 2011.
ALTERNATIVES: At the work session on February 14, council requested alternative scenarios
be provided. Several alternatives were provided in the report provided to council on the 14th,
however, staff will be bringing several additional alternatives to council (as requested) prior to
council consideration of this matter.
RECOMMENDED ACTION: Authorization to proceed with the public hearing on the
proposed rate adjustments.
Respectively Submitted,
Jane Howington
City Manager
A RESOLUTION SETTING A DATE FORON A PROPOSAL/
CLASSIFICATIONSADOPT INCREASES IN THE FEES, SCHEDULES, RATES, CHARGES, AND
# 1 ON UTILITY CUSTOMERSOF THE CITY /
WHEREAS, a study of existing fees, schedules, rates, charges and classifications of the City of
Kalispell utilities has provided substantial and persuasive evidence that the current
structure of utility rates is not adequate to fund the utility enterprise operations; and
WHEREAS, the City Council has determined that implementing the terms of the proposed five--
year Utility Rate flan is essential to maintain the necessary utility services to the City
of Kalispell customers; and
WHEREAS, the City Council, in order to adequately fund the City's utility enterprise operations
proposes the following.
5-Yeas
Current FY
FY FY FY
FY Total
Rate 10/11
11112 12113 13/14
14115 Increase
SEWER
Bi-Monthly Administrative Charge
(base rate) $3.75 $ T 5.00
$16.88
$13.13
Volume Charge (per Thousand
Gallons) $4.19
$4.53
$4.78 $0.59
Ar-,r,E
Bi-Monthly Administrative Charge
(base rate) $3.75
$15.00
$13.13
Volume Charge (per Thousand Gallons)
SOLID WASTE
$3.00
$3.00
Charges for all garbage service to increase $.25 per month,
a $3.00 annual increase.
S ecial Terms and Conditions
1. Out -of -City Water and Sewer Rate 1.25 times the in --City rate.
2. Current Sewer Flat Rate Customers (28 customers) FY 10I11 Bi-Monthly Flat Rate Charge = $72.03
WHEREAS, prior to initiating any increase in the fees, schedules, rates, charges, and
classifications, the City shall, as required 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 fF RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS .-
SECTION L The City Council of the City of Kalispell shall hold a public hearing
on the proposed utility increases on the 2 1 st day of March, 2011, at
7:00 p.m., in the Council Chambers, 201 First Avenue East, Kalispell,
Montana.
SECTION 11. 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.
[�ASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, ON THE DAY OF 72011.
Tam Fisher
Mayor
Theresa White
City Clerk