02. Resolution 4856 - Resolution Amending the Sewer Utility Connection Fees� wl
City of Kalispell Public Works Department
z Post Office Box 1.997, Kalispell, Montmia. 59903-1997 - Telephone (406)758-7 /20, Fax (406) f58-7831
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E., .Director of Public Warp / City Engineer
SUBJECT: Sewer System Development Charges (Connection Fees) - Resolution 4856
MEETING DATE: 15 December 2003
BACKGROUND: The Kalispell Water, Sewer and Storm Drainage Facility flan, 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 sewer and wastewater treatment system improvements
totaling V 9.7 million, were identified and most are critical to ensure the long term viability of the
systems. Funding these improvements presents a challenge that will be met by two basic revenue sources,
monthly rates for sewer service paid by current utility customers and sewer system development charges
(connection fees) paid by new customers at the time they attach to the public sewer. The City engaged the
consulting firm of Economic & Engineering Service, Inc who recently completed a comprehensive cost -
based analysis of the monthly sewer service rate structure and of the City's sewer system development
charge (connection fee) structure. Based on the results of the rate analysis, City Council recently took
action to set new cost -based monthly rates for sewer service. The EES cost -based analysis of the SDCs
recommended an upward revision to the sewer fee schedule. These revisions have been reviewed and
accepted by the City Council and proposed for adoption. Resolution 4856 establishes the new sewer SDC
fee schedule which becomes effective I January 2004.
RECOMMENDATION: Approve Resolution 4856.
ACTION REQUESTED: MOTION TO APPROVE RESOLUTION 4856 SETTING NEW SEWER
SYSTEM DEVELOPMENT CHARGES.
FISCAL IMPACTS: Revenue increase from charges paid by new sewer customers.
ALTERNA
C. Harisz, P,
)r of Public I
by City Council
Engineer
Chas A. Kukulskl
City Manager
Date prepared: December 10, 2003
Attachments: Revised Sewer SDC Schedule
RESOLUI ION NO.4856
A RESOLUTION TO ADOPT THE FEES, SCHEDULES, RATES, CHARGES AND
CLASSIFICATIONS IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL SEWER
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 Sewer 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 be held on December 15,
2003 on said proposed amendments to the fees, schedules, rates, charges and classifications of
the Sewer Utility services of (lie 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 Clerk 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 1.5, 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 of the
City of Kalispell Sewer Utility and other services performed by said utility 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 sewer
utility services to the inhabitants of the City of Kalispell and those other persons
served by its sewer utility service and applicable January 1 st, 2004.
SECTION .H. This decision is final ten (10) days after filing 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 DECE:MBER, 2003.
Pamela B. Kennedy
Mayor
Attest:
Theresa White
City Clerk
Determination of System Development Fees
For Sewer Connections
Section 1:
BASIC SEWER SYSTEM DEVELOPMENT CHARGE: The basic sewer system
development charge shall be shall be the fee for the single family Equivalent Residential
Unit (ERU) as shown in the attached schedule of ERU costs. The total fee is comprised
of a fee for treatment and a fee for collection.
Section 2:
SEWER CONNECTIONS OTHER THAN SINGLE FAMILY RESIDENTIAL: For all
other sewer service connections the system development charge shall be assessed on the
basis of Equivalent Residential Units (ERUs), as determined by the City Engineer or his
designated representative, from the most current Wastewater ERU Determination
Schedule in use at the time of the request for sewer service. The system development
charge shall be calculated by multiplying the calculated ERUs of the requested service by
the ERU cost as shown in the attached schedule of ERU costs_
Section 3:
ADJUSTMENT OF SDC CHARGES: An additional system development charge may be
collected due a change in use that results in increased sewage flow or increased strength
of sewage. No credit shall he given for reductions of flow or sewage strength. This
additional charge shall be determined using the same method for calculating costs as
described in Section 2 and is more completely described in the current Wastewater ERU
Determination Schedule.
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