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14. Evergreen Sewer Rate ApprovalCity of Kalispell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 FAX (406) 758-7758 REPORT TO: FROM: SUBJECT: MEETING DATE: Mayor Boharski and City Council Members Amy Robertson, Finance Director Chris Kukulski, City Manager Evergreen Sewer Rate August 7, 2000 BACKGROUND: Included in the packet are documents compiled by the Finance Office analyzing the charges to be levied by the City on the Flathead County Water & Sewer District #1 - Evergreen for treatment of sewage by the City's wastewater treatment plant. The charge is made pursuant to an Interlocal Agreement between the City and the District dated July 25, 1990 and a subsequent Addendum, dated June 24, 1996. Sewer rate adjustments for flows contributed by the District are adjusted yearly retroactive to July 1 st of the calendar year. Documentation for the rate is attached. The rate for M&O and replacement is $1.61 per thousand gallons the same as last year. The debt service amount is $10,077.16 per month a decrease of $48.01 per month based on actual debt service schedules. RECOMMENDATION: A motion to approve the rate by the Council. FISCAL EFFECTS: Evergreen Sewer District is our largest customer generating $260,058.13 toward maintenance and replacement and $120,926 toward debt service. ALTERNATIVES: As suggested by Council. Amy H. Robertson Finance Director Report compiled: August 2, 2000 Chris A. Kukulski City Manager Attachments: 5 pages- including the rate calculation, flows spreadsheet, 2 pages for the equipment replacement schedule and schedule of Evergreens cash equity in replacement fund. 2000 WWTP... FISCAL YEAR 2000 Wages/fica/medt/wc/unemp. $ 212,515.00 Overtime $ 13,243.00 Health Ins. $ 28,252.00 PERD $ 13,773.00 Office Supplies $ 496.00 Computer supplies $ 733.00 Computer Equip $ 380.00 Safety equip $ 1,073.00 Lab supplies $ 3,703.00 Janitorial Supplies $ 58.00 Alum $ 2,044.00 Chemicals $ 10,888.00 Other supplies $ 3,048.00 GAS & OIL $ 5,988.00 Consumable tools $ 1,519.00 Postage & freight $ 513.00 Memberships & dues $ 600.00 Licenses & fees $ 3,605.00 Electricity $ 147,702.00 Water $ 2,476.00 Natural Gas $ 30,655.00 phone lease/charges/pagers/alarms $ 3,033.00 Lab Services $ 3,849.00 Auditing $ 1,800.00 Contract Serv-Glacier Gold $ 94,295.00 Maint. & Repair $ 80,736.00 Consultants -NW automation $ 1,047.00 Grounds maint. $ 4,662.00 Building maint. $ 6,628.00 School & Training $ 3,992.00 Medical services/drug testing $ 367.00 Property & Liability Ins. $ 27,524.00 Central Garage $ 4,000.00 Admin. Transfer $ 87,450.00 Data Processing $ 4,425.00 Total Operating Expenses $ 807,072.00 Replacement $ 308,400.73 Debt service / Evergreen 22% x x Annual cost to Evergreen $ 120,925.86 annual Prepared: 8/2/00 City Finance Office 0.233137 $ 188,158.47 $ 1.16 per thousand gallons 0.233137 $ 71,899.67 $ 0.44 per thousand gallons Evergreen Flows 161.776.200 23.3137% Total Kalispell Flows 693,910,000 $ 260,058.13 $ 1.61 per thousand gallons $ 10,077.16 per month O O O N O 0 s s. .L CL 3 O 0 00 0 0 0 O OO O 0 O_ 0 0 0 O O O o O 0 0 0 0 :a O O o 0 0 o O O o O O o LO CD(D m co r U') m o m L(� CD O 0) V) o O r 0) LO �- N r a ' d � N ' M (fl Cfl Lo r' rl- M ' (D — .- M 0'C r "'CO N N �- N o d coLfl LO LO U') Lf) LO LC) co CO LO LO i ® a O '.. 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O T 71- O v� m � m m m m w v O" • v � N � O c�a at p o L° E o o c U U a o a, a a a J Do V) W N CD U d CJ ° 0 (D G U Cu o y O U WWTP EQUIPMENT REPLACEMENT ACCOUNT -CITY & EVERGREEN FUNKS Cash YEAR END % FLOWS EVERGREEN's DATE ADDITIONS (SPENT) BALANCE EQUITY 12/31 /94 $150,000.00 $150,000.00 8.86766% $25,270.86 12/31/95 $300,000.00 $450,000.00 16.84724% $52,170.00 6/30/96 $150,000.00 ($91,113.77) $508,886.23 17.39000% $12,631.10 6/30/97 $333,387.13 ($5,190.98) $837,082.38 21.45% $70,398.07 6/30/98 $354,574.38 $ (66,485.84) $1,125,170.92 23.95% $68,997.21 6/30/99 $370,106.34 $ (19,802.49) $1,475,474.77 24.66% $86,384.93 6/30/00 $377,442.66 $ (19,802.49) $1,833,114.94 23.31% $83,365.92 subtotal $399,218.09 Evergreen's Total Equity as of 6/30/00 5399,218.09 Additions include: $ 302,727.00 from operating revenue $ 74,715.66 interest earnings Funds Spent: Headworks/Grit system $ 9,466.63 Digester Rehab (balance) $ 10,335.86 Total $ 19,802.49