18. Resolution 4793 - Call for Public Hearing - Water Rate IncreaseCity of Kalispell Public Works Department
Posh Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)75 -7831
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E., Director of Public Works / City Engineer
SUBJECT: Call for Public Hearing — Water and Sewer Rate Increase
MEETING DATE: May 19, 2002
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*/o, 51/6, 5% and 5% are recommended for sewer. The City Attorney has
prepared Resolution 4794 and Resolution 4795 calling for a public hearing to increase fees, schedules,
rates charges and classifications for City water and sewer customers.
RECOMMENDATION: Staff recommends approval of Resolution 4 and Resolution 411gcalling
for a public hearing to increase water and sewer rates for the City of Kalispell.
ACTION REQUESTED: AT CITY COUNCIL MEETING OF MAY 19 - MOTION TO
APPROVE RESOLUTION 471,AND RESOLUTION 47
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 sub
kz
, P.E. Chris A. Kukulski
Director of Public Works/Ci E - eer City Manager
Report compiled 13 May 2003
RESOLUTION NO.4793
A RESOLUTION SETTING A DATE FOR PUBLIC HEARING ON A PROPOSAL TO ADOPT
INCREASES IN THE FEES, SCHEDULES, RATES, CHARGES AND CLASSIFICATIONS
IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL WATER UTILITY.
WHEREAS, a City of Kalispell Utility Rate Study has determined that current water rates are not adequate
to fund facility replacement and capacity increases, and
WHEREAS, the City Council has determined that implementing the five-year Capital Improvement
Program is essential to maintain water services, and
WHEREAS, the City, in order to fund the additional cost of infrastructure improvement and capacity
replacement through an increase in fees and rates, requires the following increases:
10% Fiscal Year 2003/2004
10% Fiscal Year 2004/2005
10% Fiscal Year 2005/2006
10% Fiscal Year 2006/2007
10% Fiscal Year 2007/2008
WHEREAS, prior to initiating any increase in the fees, schedules, rates, charges, and classifications, the
City is required, pursuant to Section 69-7-111, Montana Code Annotated, to hold a public
hearing on the matter after giving due and proper notice of said hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS
FOLLOWS:
SECTION I. That there is hereby set a Public Hearing on the 16th day of June, 2003, at
7:00 o'clock P.M. M.S.T. in the Council Chambers, City Hall, Kalispell,
Montana, to discuss a proposal to increase water rates by 10% for the next
five years.
SECTION II. The City Clerk and City Attorney are hereby authorized and directed to
make, publish and distribute notices of said Public Hearing in conformity
with Section 69-7-111, MCA.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY
OF KALISPELL, ON THE 19TH DAY OF MAY, 2003.
Pamela B. Kennedy
Mayor
Attest:
Theresa White
City Clerk
CITY OF KALISPELL
KALISPELL, MONTANA
UTILITY SCHEDULE FOR WATER
1 1 ,
i
EFFECTIVE July 1, 2003
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:
$2.90
$3.20
$3.50
$3.85
Meter Size
Fee per Billing
Cycle
5/8" and 3/4"
$ 1.10
$1.20
$1.30
$1.45
ill
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
$4.25
$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
RESIDENTIAL SPRINKLING SERVICE
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
EXHIBIT "A"
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.
FY03/04 FY04/05
RATE:
Per 1,000 gallons $1.05 $1.16
Special Terms and Conditions
FY05/06
$1.28
FY06/07 FY07/08
$1.41 $1.55
Separate Sprinkling Services will not be permitted OUTSIDE THE CITY LIMITS.
CITY OF KALISPELL
KALISPELL, MONTANA
UTILITY SCHEDULE FOR WATER
EXHIBIT "A"
EFFECTIVE July 1, 2003
PAGE NO. 5
• 1 )
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
RATE:
Per 1,000 gallons $2.84
Minimum 10,000 gallons
FY04/05 FY05/06 FY06/07
$3.12 $3.43 $3.77
FY07/08
$4.14
CITY OF KALISPELL EXHIBIT "A"
KALISPELL, MONTANA
UTILITY SCHEDULE FOR WATER
EFFECTIVE July 1, 2003
PAGE NO. 6
SCHEDULE E
Available for: COMMERCIAL FIRE PROTECTION — NOT METERED
[910-4824�6 Q1 I so I
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
EXHIBIT "A"
UTILITY SCHEDULE FOR WATER
EFFECTIVE July 1, 2003
WMARM
SCHEDULE H
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 %.