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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. " a b CA All rq Irn � u t� P p .�'+ '� U O iH qO Fi C} U � CC a m Z , Ge u9 ri O N G P o Gii jj O C C) 0 O � � u u O u A q O U itr u ti U CtU W oa t`k ."7. 4, 605 o + y 3 w a w e a_ a+ oo O IV 78 N v 'C7 V3 rq N9 _ y L 7J u 4m U .� N Ln ,-ems V9 .� ce