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F/1. Resolution 4798 - Resolution Increasing Fees to Water Utility UsersCity of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)75897720, Fax (406)758-7831 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works / City Engineer SUBJECT: Public Hearing — Water and Sewer Rate Increase Resolution # 4798 & # 4799 MEETING DATE: June 16, 2003 BACKGROUND: The City's Utilities Facility Plan identified many current and future water and sewer infrastructure and capacity replacement needs. The City Council determined that implementing the recommended five-year Capital Improvement Program is essential to maintain these critical City services. A comprehensive cost of service rate study has determined that current water and sewer rates are not adequate to fund these facility replacements and capacity increases. The rate study recommends an increase in water rates of 10% across the board and 3% across the board for sewer rates for the 2003/2004 budget year. Additional water rate increases of 10% each year for four years are recommended for water. Additional rate changes of 4%, 51/o, 5% and 5% are recommended for sewer. The City Attorney has prepared Resolution 4798 and Resolution 4799 to increase fees, schedules, rates charges and classifications for City water and sewer customers. RECOMMENDATION: Staff recommends approval of Resolution 4798 and Resolution 4799 calling to increase water and sewer rates for the City of Kalispell. ACTION REQUESTED: AT CITY COUNCIL MEETING OF JUNE 16 - MOTION TO APPROVE RESOLUTION 4798 AND RESOLUTION 4799. FISCAL EFFECTS: Revenue increases in the water and sewer utility to fund replacements and increases in capacity. ALTERNATIVES: As recommended by the City Council. Respectively submitted. lamcsT. Hansz, P.E. Director of Public Works/City Chris A. Kukulski City Manager Report compiled 11 June 2003 RESOLUTION NO.4798 A RESOLUTION TO ADOPT THE FEES, 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 May 19, 2003 set a public hearing to be held on June 16, 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 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 June 16, 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 Water 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 water utility services to the inhabitants of the City of Kalispell and those other persons served by its water utility service. SECTION II. 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 16TH DAY OF JUNE, 2003. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk CITY OF KALISPELL KALISPELL, MONTANA EXHIBIT "A„ UTILITY SCHEDULE FOR WATER EFFECTIVE July 1, 2003 SCHEDULE A RESIDENTIAL AND COMMERCIAL SERVICE Available for: User premises located within the City Limits administrative cost per meter FY03/04 FY04/05 FY05/06 FY06/07 Charge: $2.85 $3.00 $3.25 $3.55 Meter Size Fee per Billing Cycle 5/8" and 3/4" $ 1.10 $1.20 $1.30 $1.45 1" 1.85 2.05 2.25 2.50 1 1/2" 3.65 4.00 4.40 4.85 2" 5.15 5.65 6.20 6.80 3" 19.25 21.50 23.30 25.65 4" 27.15 29.85 32.85 36.15 > 4" determined at time of connection based upon 15 year replacement life Rate: per thousand gallons/no minimum All consumption $ 1.66 $ 1.83 $ 2.01 $2.21 MULTIPLE USERS Number of units will not be a factor in the rate formula. Special Terms and Conditions 1. See Sheet 2 Schedule B for Sprinkling Terms, etc. 2. Out of City rate 1.25 times the in -City rate. PAGE NO. 1 FY07/08 $3.75 $1.60 2.75 5.35 7.50 28.20 39.75 $2.43 CITY OF KALISPELL KALISPELL, MONTANA UTILITY SCHEDULE FOR WATER EFFECTIVE July 1, 2003 PAGE NO. 2 SCHEDULE B Available for: Residential Users only Rate: Special summer rate -- Water used for sprinkling purposes. All residential users who do not have separately metered sprinkling services will be charged during the months of May, June, July, August, September and October (see rate) per thousand gallons on the amount of water used in excess of the average consumption for the preceding four months. Usage below the minimum in that base period will be computed at minimum to obtain the average. Rate: FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 Per 1,000 gallons $1.05 $1.16 $1.28 $1.41 $1.55 In as much as water bills are rendered bimonthly with the service area divided into two sections billed in alternate periods, this special sprinkling rate will be applied as follows: Section A (West Side) meters read in odd numbered months: Excess usage, defined above in the period after the March reading to the November reading, will be accorded Sprinkling Rate consideration. Section B (East Side) meters read in even numbered months: Excess usage, defined above in the period after the April reading to the December reading, will be accorded Sprinkling Rate consideration. CITY OF KALISPELL KALISPELL, MONTANA I W4 11 "; IM& ii UTILITY SCHEDULE FOR WATER EFFECTIVE July 1, 2003 SCHEDULE B-1 SEPARATELY METERED SPRINKLING SERVICE Available for: All users within the City limits FY03/04 FY04/05 FY05/06 FY06/07 RATE: Per 1,000 gallons $1.05 $1.16 $1.28 $1.41 PAGE NO. 3 FY07/08 $1.55 All water users supplied through a separately metered sprinkling service as provided in the Rules and Regulations, will be billed during the Sprinkling Season as defined herein for all water used during the Sprinkling Season. No fee will be assessed against these separate sprinkling services except during the Sprinkling Season. No Sewer fees will be assessed against these separate sprinkling services unless water is used for other purposes (which is prohibited in the Rules and Regulations.) Where usage other than during the Sprinkling Season is indicated, this separate service may be cut off and charged per Schedule A rendered for that usage. Separately metered Sprinkling Services are permitted only in conjunction with usage through a service to a dwelling or commercial account and will not be provided for irrigation purposes. Special Terms and Conditions Separate Sprinkling Services will not be granted OUTSIDE THE CITY LIMITS. CITY OF KALISPELL EXHIBIT "A" KALISPELL, MONTANA UTILITY SCHEDULE FOR WATER SCHEDULE C SPECIAL SUMMER SPRINKLING Available for: COMMERCIAL USERS AND SCHOOLS Rate: EFFECTIVE July 1, 2003 PAGE NO. 4 Commercial users, including schools, will be granted Sprinkling Rates ONLY if Separately Metered Services are installed for that purpose. Such services may be entirely separate from the main to the property or separated ahead of the principal meter serving the property. Users served in this manner for this purpose will be billed per thousand gallons on all water used for this purpose during the Sprinkling Season outlined under Residential Meters. No Sewer Fees will be assessed against these Separate Sprinkling Services unless water is used for other purposes, which is prohibited in the Rules and Regulations. The Utility will provide 5/8" meters for these Separately Metered Services. If larger meters are needed, the cost of said larger meter will be paid by the user. RATE: Per 1,000 gallons FY03/04 M Special Terms and Conditions FY04/05 FY05/06 FY06/07 $1.16 $1.28 $1.41 FY07/08 $1.55 Separate Sprinkling Services will not be permitted OUTSIDE THE CITY LIMITS. CITY OF KALISPELL KALISPELL, MONTANA 1 UTILITY SCHEDULE FOR WATER EFFECTIVE July 1, 2003 PAGE NO. 5 Z i •1� 1 INDI C WATER ASSOCIATIONS SERVICE Available for: SERVICE TO WATER ASSOCIATIONS, OTHER WATER UTILITIES FOR RESALE Rate: Service supplied for Water Associations or their Water Utilities will not be provided under Schedule A rates, but will be based on the service to be supplied and Rates Negotiated at the time agreement is made to provide the services. MISCELLANEOUS SALES OF WATER Water sold from Hydrants to trucks by the load: FY03/04 FY04/05 FY05/06 RATE: Per 1,000 gallons $2.84 $3.12 $3.43 Minimum 10,000 gallons FY06/07 FY07/08 $3.77 $4.14 CITY OF KALISPELL EXHIBIT "A" KALISPELL, MONTANA UTILITY SCHEDULE FOR WATER EFFECTIVE July 1, 2003 PAGE NO. 6 Available for: COMMERCIAL FIRE PROTECTION - NOT METERED Rate: PER MONTH SIZE OF FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 SERVICE 2 Inches $16.95 $18.65 $20.50 $22.55 $24.80 3 Inches 20.00 22.00 24.20 26.60 29.25 4 Inches 22.20 24.40 26.85 29.55 32.50 6 Inches 27.40 30.15 33.15 36.45 40.10 8 Inches 34.80 38.30 42.15 46.15 51.00 10 Inches 43.68 52.85 58.15 63.95 70.35 CITY OF KALISPELL KALISPELL, MONTANA UTILITY SCHEDULE FOR WATER SCHEDULE F FEES FOR SPECIAL SERVICES Turn On EFFECTIVE July 1, 2003 PAGE NO. 7 Rate: When applicable as provided in Rules and Regulations each occurrence when made during regular working hours shall be billed at 1.5 times the current hourly rate. When required other than regular working hours will be billed at overtime rate for hours involved with a minimum of two hours. 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 CITY OF KALISPELL KALISPELL, MONTANA UTILITY SCHEDULE FOR WATER EFFECTIVE July 1, 2003 PAGE NO. 8 SCHEDULE G OUT OF CITY SERVICES Available for: Residential and Commercial services located outside the City limits, available only by contract approved by the City Council. Rate: Rates per all Schedules where service is allocated, PLUS SURCHARGE OF 25 %.