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.