3. Lift StationsCity of Kalispell Public WorksDepartment
Post Office Box 1997, Kalispell. Mott.tana 59903-1997 - Telepbone (406)758-7720, Fax (406)758-7831
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E., Director of Public Works
SUBJECT: Lift Station Cost Differentials
MEETING DATE: December 13, 2004
In a recent work session concerns were raised about the high cost of pumping sewage over long
distances and the added costs of pumping through multiple lift stations. In response, staff suggested that a
system could possibly be developed to assign these higher costs to those needing the more costly
pumping services. Whitefish uses such a system and we have researched this with them to gain a better
understanding of its operation, advantages and short comings.
Whitefish has subdivided its service area into several zones depending on the number of lift
stations needed to collect and deliver sewage to the treatment plant. Theirs is a very complex system that
tracks literally every expense of each individual lift station. Customers are identified by the zone in which
they receive service and are billed accordingly. An outline of the Whitefish system is attached along with
their rate structure.
The Whitefish system was established more than ten years ago and their cost of service rate
analysis was based on it. The Kalispell system was not created to track individual lift station costs with
the intent of setting billing rates based on that data, The Kalispell system is viewed as a homogenous
system with costs distributed more or less uniformly over the system and its customers. We would need to
perform a complete analysis of the actual Kalispell sewerage system to accurately identify the correct
service class for every customer, based on the number of lift stations used to deliver service. All costs for
each lift station (approaching 30) would need to be collected and tallied. This would be similar to what is
done for determining the Evergreen contract rate. This system -wide evaluation and restructuring would
need to be done for the entire community in order to ensure the Kalispell rate system remains fair and
equitable.
We, do no believe the Whitefish system., or a similar system of zoned costs is one that we can
recommend at this time. The complexity is greater than the present problem appears to warrant.
Moreover, the City has just completed a comprehensive cost of service rate study the goal of which was
to ensure equitable cost allocation to all its customers. This goal was achieved. Therefore, after reviewing
December 13, 2004 Lift station Cost Differentials_doc
the issue more fully, staff believes that changing to a zoned system, while feasible, is a solution that
should be reserved for a future date when the magnitude of the problem warrants its consideration.
December 13, 2004 Lift station Cost Differentials -doe
To: Jim Hansz, Public Works Director
From: Terri Loudermilk, Administrative Coordinator
Date: 12/8/2004
Re: City of Whitefish - Monthly Sewer User Fee
Structure
Whitefish has a unique system in place for determining monthly sewer user fees. A
service class has been assigned to each resident to determine what their monthly rate will
be.
The service class is based on how many lift stations your sewage gasses through. For
example,
SCIIN = sewage passes through one lift station - in City limits
SC 1 OUT = sewage passes through one lift station - out of City limits
In order to determine the fees for the different service classes a Cost of Service Analysis
was completed. Some of the costs that the cost of service analysis used to determine the
fee structure included:
0&Mcosts
Replacement costs (no capital costs)
Cost of collection, distribution, treatment and pumping
The Cost of Service Analysis further determined how much each lift station costs to
maintain. This was done by analyzing timesheets, electrical bills, repair parts, etc.
Whitefish has had this system in place for over 10 years and has had it challenged and
brought before the Public Service Commission. The rate structure was accepted and was
determined to be fair and equitable.
A copy of Whitefish's current rate structure is attached.
7 2- 8-V4; .i: �D / FIY3
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j ?S z
P_02
Class _
Rase Rate
Per Thousand Gallons
SC- I IN
$10.75 '
$2.65
SC-21N
$12.85
$3.77
SC-31N
$14,95
$4.90
Grinders
$19.10
$7.74
Step Sys Pack Rat
$19.10
$9.38
SC -lour
$1173
$4.08
SC-2O13T
$15.83
$5.20
SC-3OU1'
$17.93
$6.33
Step Sys Rest Haven
$22.08
$10,81
SC-2 = Two Lillstations
SC-3 � Three Liflstations
Step = Septic tank effluent pumps
Grinder = All grinders systems are located in service class 3- SC-3