01. Resolution 4855 - Resolution Amending the Water Utility Connection Feestr of Kalispell Public Works Department
Past Office Box 1997,.Kalispell,Montana 59903-199, Telephone (406)75$-7720, Fax (406)758-7831.
REPORT TO: Mayor and City Council
FROM: dames C. Hansz, P.E., Director of Public Works / City Engineer
SUBJECT: Water System Development Charges (Connection Fees) - Resolution 4855
MEETING DATE: 15 December 2003
BACKGROUND: The Kalispell Water, Sewer and Storm Drainage Facility Plan, June 2002,
identified a host of much needed improvements to these critical utility systems. These
improvements are necessary to sustain the current high quality of utility service and also to
ensure the community's ability to meet the future demands for service. A large number of water
system improvements totaling $11.2 million, were identified and most are critical to ensure the
long term viability of the system. Funding these improvements presents a challenge that will be
.met by two basic revenue sources, monthly rates for water service paid by current water utility
customers and system development charges (connection fees) paid by new customers at the time
they attach to the water system. The City engaged the consulting firm of Economic &
Engineering Service, Inc who recently completed a comprehensive cost -based analysis of the
monthly water rate structure and of the City's water system development charge (connection fee)
structure. Based on the results of the water rate analysis, City Council recently tools action to set
new cost -based monthly rates for water service. The EES cost -based analysis of water SDCs
recommended an upward revision to the fee schedule. These revisions have been reviewed and
accepted by the City Council and proposed for adoption. Resolution 4855 establishes the new
water SDC fee schedule which becomes effective 1 January 2004.
The resolution also includes a "tag fee" which is a new charge to pass the costs of tagging
a delinquent account on to the property owner. This fee will be assessed after written notice of
delinquent charges is sent. The notice will provide a date and time by which arrangements for
payment must be made. Failure to respond will result in the department sending an employee to
the house to deliver a "tag" notice of impending water shut-off. The $20 cost of this effort will
be charged to the delinquent account. Additionally, if the water is shut-off a reconnect fee of
$30 will be assessed to reimburse the City for the costs.
RECOMMENDATION: Approve Resolution 4855.
ACTION REQUESTED: MOTION TO APPROVE RESOLUTION 4855 SETTING NEW
WATER SYSTEM DEVELOPMENT CHARGES AND TAG FEES.
FISCAL IMPACTS: Revenue increase from charges paid by new water customers.
ALTERNATIVES: As suggested by City Council
Respectfully submitted,
Tames C. Hansz, P.E.
Director of Public Works / City Engineer
Attachments: Revised Water SDC Schedule
December 15, 2003 Water SDC Increases. doe
Chris A. Kukulski
City Manager
Date prepared: December 10, 2003
RESOLUTION NO. 4855
A RESOLUTION TO ADOPT THE PEES, SCHEDULES, RATES, CHARGES AND
CLASSIFICATIONS IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL WATER
UTILITY.
WHEREAS, pursuant to authority granted to municipalities operating utility services by Section 69-7-101,
MCA, the City of Kalispell did consider it proper to amend the fees, schedules, rates, charges
and classifications imposed for utility services to its inhabitants and other persons served by
the City of Kalispell Water Utility; and
WHEREAS, said proposed amended fees, schedules, rates, charges and classifications are reasonable and
just; and
WHEREAS, the City Council did, on November 17, 2003 set a public hearing to behold on December 15,
2003 on said proposed amendments to the fees, schedules, rates, charges and classifications of
the Water Utility services of the City of Kalispell and gave the necessary Notice thereof as
required by Section. 69-7-111, MCA; and
WHEREAS, due and proper Notice of said Public Hearing has been given by the City Cleric by publication
and mailing as required by law; and
WHEREAS, said public hearing was duly held by the City Council at a public meeting thereof in the
Kalispell City Hall beginning at 7:00 o'clock P.M, on December 15, 2003, and all persons
appearing at said hearing and expressing a desire to be heard were heard, and all written
comments thereon furnished to the City Clerk at said meeting prior thereto were given
consideration by the Council,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL:
SECTION I. That the fees, schedules, rates, charges and classifications applicable to the use ofthe
City of Kalispell Water Utility and other services performed by said futility as set
forth in Exhibit "A", attached hereto and by this reference made a part hereof, are
found to be just and are hereby established and adopted to be imposed for water
utility services to the inhabitants of the City of Kalispell and those other persons
served by its water utility service and applicable January 1 st, 2004,
SECTION H. This decision is final ten (10) days after fling of this Resolution. with the City
Finance Director. The Finance Director shall file a copy hereof with the Public
Service Commission. of Montana at that time.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY
OF KALISPELL.,, THIS 15TH DAY OF DECEMBER, 2003.
Pamela B. Kennedy
Mayor
Attest:
Theresa White
City Clerk
CITY OF KALISPELL
KALISPELL, MONTANA
UTILITY SCHEDULE FOR WATER
Tag Fee
EXHIBIT "A"
EFFECTIVE January 1 2004
SCHEDULE F
(replaces previous Schedule F dated July 1, 2003)
FEES FOR SPECIAL SERVICES
Rate. A $20.00 fee will be added to delinquent accounts when City staff is required to notify
residents of potential water turn-off by leaving a written notice at their premises. This fee
reimburses the City for the costs associated with notification and delivery.
Turn On Fee
Rate: When applicable as provided in Rules and Regulations each occurrence when made during
regular working fours shall be billed $30.00. When required other than regular working
hours will be billed $95.00.
Meter Testing at Customer Request
Deposits required as outlined in Rules and Regulations and refundable under conditions
outlined herein.
Meters up to 2" $ 40.00 Deposit
Larger than 2" 100.00 Deposit
Determination of Fees for Water Connections
Section 1:
CONNECTION SIZES UP TO 3 INCHES: System development charges for water
connections in sizes up to 3 inches in diameter shall be based on the attached schedule of
fees. Note: The standard residential water connection size in Kalispell is 3/" diameter.
The amounts shown for connection size 5/8" X 3/4" are credit amounts applied toward the
fee to be charged when upgrading and increasing the size of older existing water service
connections made prior to the date of this revision.
Section 2:
CONNECTION SIZES OVER 3INCHES: For water connections beginning with size 4"
and larger, the System Development Charge (SDC) shall be determined on the basis of
the customer's anticipated water usage. Anticipated peak day water usage will be divided
by equivalent residential units (ERU) of usage for peak use (947gpd per ERU) to
determine the peak day ERU. Anticipated average daily water use will be multiplied by
1.1 (110%) and then divided by the equivalent residential units (ERU) for storage
requirements (385gpd per ERU) to determine the storage ERU.
For calendar year 2003, peak use SDC shall be determined multiplying the peak
day ERU by the peak day 2003 SDC cost of $1,239/ERU. Storage SDC shall be
determined by multiplying the storage ERU by the storage 2003 SDC cost of $436/ERU.
The total 2003 SDC shall be the sum of these two SDC calculations.
Calculations for future years shall be determined in the same manner using the
peak SDC cost and storage SDC cost then in effect for the year. SDC costs shall increase
3% each year thereafter from the base year of 2003.
Section 3:
ADJUSTMENT OF SDC CHARGES: The SDC charge paid for water connections larger
than 3 inches as of the effective date of this ordinance may be adjusted based on actual
usage. If usage is greater than 110% of anticipated usage during a 12 month period of
time, an additional SDC may be charged. This additional charge shall be determined
using the same method for calculating peak and storage SDCs and multiplying by the
peak and storage SDC costs per ERU effect.
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