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03. Resolution 4705 - Calling for Public Hearing on Proposal to Increase Sewer Fees4DCity of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: Call for Public Hearing - Sewer Rate Increase MEETING DATE: June 3, 2002 BACKGROUND: The recently completed Facility Plan identified many sewer infrastructure replacement needs. Current rates are adequate for only a small portion of these projects that are included in the proposed FY 2002/2003 budget. These replacements total $255,000.00. Rates are not adequate for future replacements. The budget for FY 2002/2003 includes a proposed rate change $.10/1,000 gallons for the funding of future replacements. The City Attorney has prepared Resolution 4705 calling for a public hearing to increase fees, schedules, rates charges and classifications for City sewer customers. RECOMMENDATION: Staff recommends approval of Resolution 4705 calling for a public hearing to increase sewer rates for the City of Kalispell. ACTION REQUESTED: AT CITY COUNCIL MEETING OF JUNE 3 - MOTION APPROVING RESOLUTION 4705. FISCAL EFFECTS: Revenue increases in the sewer utility of approximately $75,000.00 per year to fund replacements. ALTERNATIVES: As recommended by the City Council. Respectively A. qL" an P.E. Chris A. Kukulski of Public ;WE ity Engineer City Manager Report compiled May 30, 2002 RESOLUTION NO. 4705 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 SEWER UTILITY. WHEREAS, the sewer utility has many infrastructure needs and ageing facilities, hence the need to designate $.10 per thousand gallons to a replacement reserve, and WHEREAS, an increase of ten cents ($.10) in the sewer rate will generate approximately $75,000 per year, and 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 1st day of July, 2002, at 7:00 o'clock P.M. M.S.T. in the Council Chambers, City Hall, Kalispell, Montana, to discuss a proposal to yield a $.10 per thousand gallon increase in the total revenues to finance the replacement account of the City sewer utility. 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 3RD DAY OF JUNE, 2002. Pamela B. Kennedy Mayor Attest: Theresa White City Clerk CITY OF KALISPELL KALISPELL, MONTANA UTILITY SCHEDULE FOR SEWER EXHIBIT "A" EFFECTIVE July 1, 2002 PAGE NO. 1 SCHEDULE A RESIDENTIAL AND COMMERCIAL SERVICE Available for: User premises located within the City Limits Charge: $2.65 administrative cost per meter Rate: $3.38 per thousand gallons/no minimum * *Water billed per Sprinkling rate or separately metered for Sprinkling not subject to Sewer fee. (Note: $ .10 of this rate is designated for the replacement account) MULTIPLE USERS Number of units will not be a factor in the rate formula. Special Terms and Conditions 1. Out of City rate 1.25 times the in -City rate. CITY OF KALISPELL KALISPELL, MONTANA EXHIBIT "A" UTILITY SCHEDULE FOR SEWER EFFECTIVE July 1, 2002 PAGE NO. 2 SCHEDULE B RESIDENTIAL AND COMMERCIAL Available for: Users of the system NOT SERVED by the City Water Utility but within the City limits of Kalispell Rate: Premises discharging sewage into the system from water service originating from other than metered City Water must install a meter, at user's expense, so as to provide a measure of usage. This provision covers all outside sources of water including wells and outside water systems. The charge for sewer services: $2.65 Administrative cost per meter AND $3.38 per thousand gallons/no minimum In the case of temporary absence of metering, usage will be estimated. At the date of the adopting of this Schedule there are wells supplying commercial and industrial premises, these are required to be metered. Until this metering is accomplished, the sewer discharge from those premises will be determined from the capacity of the pump delivering the water and hours of operation of the pump. In the case of restaurants and bars, etc., served in the same manner, sewer volume may be determined by comparison with a like situation now metered. MULTIPLE USERS Number of units will not be a factor in the rate formula. Special Terms and Conditions CITY OF KALISPELL KALISPELL, MONTANA UTILITY SCHEDULE FOR SEWER EXHIBIT "A" EFFECTIVE July 1, 2002 PAGE NO. 3 1. Out of City Rate 1.25 times the in -City rate. SCHEDULE C Where it has been determined that concentration of BOD (Biological Oxygen Demand) and SS (Suspended Solids) are present in sewage discharged by a Commercial or Industrial user, a surcharge will be made as determined herein: The Utility will consider the average Residential component of sewage to be 200 PPM BOD and 250 PPM SS. Surcharges will be assessed to all users discharging wastes which exceed the component of residential waste as indicated above: For each 25 PPM BOD above 200 PPM — $.20 Per Thousand Gallons For each 25 PPM SS above 250 PPM — $.17 Per Thousand Gallons SEPTIC WASTES Septic sewage introduced into the sewage system shall be charged at the rate of $2.50 per hundred (100) gallons with a minimum charge of $15.00 per load for bulk loads. The volume charge will be based on the capacity of the hauling tank, not on the volume of the contents. Special Terms and Conditions 1. Out of City rate 1.25 times the in -City rate.