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04. Resolution 5637 - Solid Waste Commercial UsersCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 MEMORANDUM To: Mayor Fisher and Kalispell City uncil From: Doug Russell, City Manager✓% 1 Re: Solid Waste Rate Adjustment Meeting Date: August 19, 2013 BACKGROUND: During the budget process, several municipal funds were identified as needing review based upon the revenue trends and respective fund balances. At the work session on July 8, 2013, staff presented information related to current rate structures, forecasted revenues and expenditures, and policy components for respective funds. Additionally, staff presented recommendations for adjusting the rate structures to provide sustainability in these respective programs through a rate increase program. Attached is the resolution for the recommended adjustment to the Solid Waste Assessment. This resolution proposes removing discounts for multiple pickups for commercial accounts: Solid Waste: amending policy to remove discount for multiple pickups in commercial accounts The information presented at the work session is attached to this document following the resolution. It identifies the current commercial container accounts and respective billing information, both current and proposed. RECOMMENDATION: It is recommended Council approve Resolution #5637 adopting the proposed rate adjustments to the Solid Waste Commercial Maintenance Assessment. RESOLUTION NO.5637 A .RESOLUTION TO ADOPT THE FEES, SCHEDULES, RATES, CHARGES AND CLASSIFICATIONS IMPOSED ON THE COMMERCIAL CUSTOMERS OF THE CITY OF KALISPELL SOLID WASTE UTILITY. WHEREAS, a study of the City of Kalispell Solid Waste Division has identified an unbalanced fee structure applied to commercial customers of the utility due to a discount being provided to those customers receiving service more than once a week; and WHEREAS, this study of solid waste services indicates the cost to the City of each solid waste pick up remains the same regardless of the number of times it is provided to a customer throughout the week; and WHEREAS, pursuant to authority granted to municipalities operating utility services by Section 69-7-101 et seq., MCA, the City of Kalispell considers 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 Solid Waste Utility; and WHEREAS, said proposed amended fees, schedules, rates, charges and classifications are reasonable and just; and WHEREAS, the City Council did, on July 15, 2013 by Resolution No. 5630 set a public hearing to be held on August 5, 2013 on said proposed amendments to the fees, schedules, rates, charges and classifications of the Solid Waste Utility service 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 August 5, 2013, 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 1. That the fees, schedules, rates, charges and classifications applicable to the use of the City of Kalispell Solid Waste 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 solid waste utility services to the inhabitants of the City of Kalispell and those other persons served by these utility services and applicable for each utility as set forth in Exhibit «A„ SECTION 2. This decision is final ten (10) days after filing of this Resolution with the City Clerk. The City Clerk shall file a copy hereof with the Montana Consumer Council at that time. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 19TH DAY OF AUGUST, 2013. ATTEST: Theresa White City Clerk Tammi Fisher Mayor EXHIBIT "A" 300 Gallon Container $338.00 annually for each weekly pick up 350 Gallon Container $375.00 annually for each weekly pick up 400 Gallon Container $411.00 annually for each weekly pick up ?f3/2013 __ I w Current Rate Structure tur Recommended Alternative 18 7/3J2013 Proposed Rate Adjustment Nun•I{e,sidcn#ial Services 31MF L:allom 350GRI1on 40CA100 CUMDr F'-PD-d CurrrlYt PropiKed Currcrp Prop4wd DUMIk.STER Picky, RaLV% Ry[ FL31M P6 rn Ratr Raga Once per Week 53-MAN 53118.(l 537S.00 5375M $41 Lafl 3411.00 Z K prr WHk sssxon W&W $631.00 5756M $704.O0 SSUOD 3Xper Weck W$ffl0 Si,pj .M $maa $1,t7 W st,OsUlb 51133.0D OUTCOME EFFECTS 00 Gallon Customers ,:1 2 x per week = 27 n 3 x per week = 2 400 Gallon Customers .: 2 x per week = 56 7. 3 x per week = 47 Budget Revenue Estimated Increase $19,000 per Year Standardized Rate Structure for ColleCtion of Commercial Solid Waste Service 19