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Home My WebLink AboutITEM VIII-A-7* P A CID R AGENDA BILL APPROVAL FORM WASHINGTON Agenda Subject: Date: Ordinance No. 6204 September 30, 2008 Department: Attachments: Budget Impact: Public Works and Finance Ordinance No. 6204 N/A Administrative Recommendation: City Council introduce and adopt Ordinance No. 6204. Background Summary: During review the proposed utility budgets staff noted that net revenue in the utilities was not sufficient to meet the bonding requirements in relation to the debt service coverage ratio of 1.25. There are several factors that have affected the net revenue line of the utilities. The largest one is the loss of revenue from the annexation. There are approximately 4100 households in the annexation areas that no longer pay the outside City surcharge of 50% for water and sewer services. The estimated impact on revenue is $600,000.00 and $250,000.00, respectively, for a total of $850,000. Other factors include costs associated with labor contracts in place, increases in employer medical and pension contributions, and increasing commodity prices (inflation). Therefore, staff is proposing water and storm utility rate increases consistent with those currently in place for the sanitary sewer utility. The increases to the water and storm rates become effective November 1, 2008 and increase again in 2009 and 2010 according to the rate schedule show below. The rate increases are necessary to meet debt service requirements and capital schedules. Proposed Water and Storm Utility Rate Schedule 2008 Jan 2009 2010 Sanitary Sewer - Ordinance No. 6034 9.73% 6.06% 5.99% (July 10, 2006) Proposed Rate Increases: Nov. 1, 2008 Water 9.73% 6.06% 5.99% Storm Drainage 9.73% 6.06% 5.99% W1 006-7 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ? Arts Commission COUNCIL COMMITTEES: ? Building ? M&O ? Airport ® Finance ? Cemetery ? Mayor ? Hearing Examiner ? Municipal Serv. ? Finance ? Parks ? Human Services ? Planning & CD ? Fire ? Planning ? Park Board ®Public Works ? Legal ? Police ? Planning Comm. ? Other ® Public Works ? Human Resources ? Information Services Action: Committee Approval: ?Yes ?No Council Approval: ?Yes ?No Call for Public Hearing Referred to Until _/_/_ Tabled Until _/_/_ Councilmember: Wagner Staff: Dowd Meeting Date: October 6, 2008 Item Number: VIII.A.7 AUBURN *MORE THAN YOU IMAGINED ORDINANCE NO. 6 2 0 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING SECTIONS 13.06.360 AND 13.48.100 OF THE AUBURN CITY CODE RELATING TO UTILITY RATES WHEREAS, in a review of the City of Auburn utility rates, it was determined that the rates should be adjusted to address current pricing needs for the utilities for water and storm drainage among the City's utility customers. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. AMENDMENT TO CITY CODE. That Section 13.06.360 of the Auburn City Code - regarding rates for the Water Utility - be, and the same is hereby amended, effective November 1, 2008, to read as follows: 13.06.360 Rates - Generally. Efferative as of the first full billiRg GyGle after jaRuaFy 1, 2005, the Monthly Fates fbF water supplied by meter shall be as fellewsL eF 100 rubiG feet ( B Rate Char e C Cl GGf) p ase g ustomer ass 70 7 011 _ 16 nnf $1 . Q` 1 0C? `+ 1 ?nf Multifamily Fesidential $21.50 $1.50 eFGi I $21.50 $1.70 MaRufaGtWingl ind0stFial $21.50 $1.40 SGI19016- $21.50 $i.6^v-- City aGGOURtS $21.50 $2.15 lFrigation only $7.25 V.95 Wholesale Algona $34.00 . "take 5 m d 85 1 00 $0 $175 t i VD #111 d G u . g . . en ov ng an V 10 s ummeF ever 1 $i 5 mgd . g70.95 Winter ever 1.5 . mnrl- v Provided, however, that 50 peFGent sshall -he added to all rates foF watef--?? outside the Gity limits. Gity of Auburn utility t . -,Iuded *F; the menthly Fate fGF all Ordinance No. 6204 September 10, 2008 Page 1 F=#eGtive as ef the first full billing GyGie after january 1, 2006, the menthly F for wateF supplied by meter shall be as fGilews-.? Customer Class Base Rate Charge peF 100 rubi(; feet (r.Gf) Single family residential $7,50 $1.50 0 - 7 Grf $1.80 7.01 15-G4- $2.05 > 15 GGDf Multifamily Fesidential $22.35 $1.55 -- G emsal $222.35 V.80 ManufaGtUFiRg/ industrial $22,.35 $1.45, Sc- isols $22.35 $.65 City aGGGunts $22.35 $2.15 IFFigation only $750 $2.05 Wholesale . Algona WD #111 and Gevingten $175.00 $0.85 1.5 mgd "take 9F pay" r! $1'10 summer eyeF 1 5 mgc+ V.10 rrrm'i-v r?i-t--rt-r $0 85 WiRter ever 1.5 mgd- 1 haweveF, that 60 perGent shall be added to all Fates for wateF s outside the Gity IiMitS. Gity ef AubuFR utility taxes aFe inGluded in the monthly Fate for all Effective as of the first full billing cycle after danuary-1, 2007November 1, 2008, the monthly rates for water supplied by meter shall be as follows: Customer Class Base Rate Charge per 100 cubic feet (ccf) Single-family residential $7-89 8.56 $1.55 1.70 0 - 7 ccf $1.98 2.08 7.01 - 15 ccf $2.15 2.36 > 15 ccf Multifamily residential $23.25 25.51 $1.62$1.78 Commercial $23. ?4V5.51 $1.85$2.08 Manufacturing/ industrial $23.25125.51 $1.50$1.65 Schools $23.25 25.51 $1.75$1.92 City accounts $23:2-5 25.51 $2.15$2.36 Irrigation only $7.80$8.56 $2.15$2.36 Wholesale Algona $3625 40.33 $1.20$1.32 WD #111 and Covington $175.00 $0.95$0.88 1.5 mgd "take or pay" Ordinance No. 6204 September 10, 2008 Page 2 $1.10$1.14 summer over 1.5 mgd $8-8i 0.88 winter over 1.5 mgd Effective as of the first full billing cycle after January 1 2009, the monthly rates for water supplied by meter shall be as follows: Customer Class Base Rate Charge per 100 cubic feet cc Single Family residential 9.08 $1.80 0-7 ccf $2.21 7.01-15 ccf $2.50 >15 ccf Multi-Family residential 27.06 1.89 Commercial 27.06 2.15 Manufacturing/Industrial 27.06 1.75 Schools 27.06 2.04 City Accounts 27.06 2.50 Irrigation Only 9.08 2.50 Wholesale Algona WD #111 and Covington 42.77 175.00 1.40 12008 Rate X CPI 1.5 mgd "take or pay" 2008 Rate X CPI + $0.25 summer over 1.5 mqd 2008 Rate X CPI winter over 1.5 mqd Effective as of the first full billing cycle after January 1 2010, the monthly rates for water supplied by meter shall be as follows: Customer Class Base Rate Charge per 100 cubic feet cc Single Family residential 9.62 $1.91 0-7 ccf 2.34 7.01-15ccf $2.65 >15 ccf Multi-Family residential 28.68 2.00 Commercial 28.68 2.28 Manufacturing/Industrial 28.68 1.85 Schools 28.68 2.16 City Accounts 28.68 2.65 Irrigation Only 9.68 2.65 Ordinance No. 6204 September 10, 2008 Page Wholesale Algona 45.33 1.48 WD #111 and Covington 175.00 2009 Rate X CPI 1.5 mqd "take or pay" 2009 Rate X CPI + $025 summer over 1.5 mqd 2009 Rate X CPI winter over 1.5 mqd Provided, however, that 50 percent shall be added to all rates for water service outside the city limits. City of Auburn utility taxes are included in the monthly rate for all customers except wholesale accounts. Wholesale rates exclude the 50 percent out of city service charge and state excise taxes. (Ord. 5898 § 2, 2005; Ord. 5876 § 2, 2004; Ord. 5849 § 1, 2004; Ord. 5789 § 2, 2003; Ord. 5712 § 2, 2002; Ord. 5669 § 2, 2002; Ord. 5664 § 2, 2002; Ord. 5618 § 2, 2002; Ord. 5291 § 2, 1999; Ord. 5216 § 1, 1999; Ord. 4878 § 3, 1996.) Section 2. AMENDMENT TO CITY CODE. That Section 13.48.100 of the Auburn City Code - regarding rates for the Storm Drainage Utility - be, and the same is hereby amended, effective November 1, 2008, to read as follows: 13.48.100 Rates. The customer classes and rates below are based upon the cost of services provided by the storm utility. , the MORthly A. Ftffentffvp 6 of the fiFst full billing Fates for ste-Fm dFainaqe-sefyioe??. The siRgle family and two family residential menthly Gharge shall be $9.90 peF month. 2. Non Single Family PaFGe!S (NSF=). Ordinance No. 6204 September 10, 2008 Page 4 rates feF steFm drainage se. A- shall be-. The siRgle family and two family residential menthly Gharge shall be $10.90 peF rnoRth. Re. n D? *e Per Month E-,S ;ZaU Per, IA e1Mth Customer Classes Non Single-Fan* NSF= w/Detentk?n 7-0 NSF_w/Rettenfi A.m. $6-70 $4 45tESU $6-79 $4.701ESU WAA1 mw.ateF Quality Treatment NSF= w/RetentiGR and WateF i G -Effective as of the first full billing cycle after january 1, 2087November 1, 2008, the monthly rates for storm drainage service shall be: 1. Single-Family Residential Parcels and Two-Family Residential Parcels. The single-family and two-family residential monthly charge shall be $11.50 per month. 2. Non-Single-Family Parcels (NSF). Customer Classes Base Rate Per Month ESU Rate Per Month Non-Single-Family $7.4 i 7.85 10.04/ESU NSF w/Detention "7. 8 5 $7.3 5 8.07/ESU NSF w/Retention $7.1 i 7.85 $4.5 4.99/ESU NSF w/Water Quality Treatment $7.1 i$7.85 $5:60 6.04/ESU NSF w/Detention and Water Quality Treatment "$Z.85 $4.16 4.55/ESU NSF w/Retention and Water Quality Treatment "7.85 $2.69 2.85/ESU B Effective as of the first full billing cycle after January 1 2009, the monthly rates for storm drainage service shall be: 1 Single-Family Residential Parcels and Two-Family Residential Parcels. The single- f_amily and two-family residential monthly charge shall be $13.38 per month. 2. Non-Single-Family Parcels (NSF). Customer Classes Non-Single-Family NSF w/ Detention NSF w/ Retention Base Rate Per Month 8.32 8.32 8.32 ESU Rate Per Month $10.65/ESU 8.55/ESU 5.30/ESU Ordinance No. 6204 September 10, 2008 Page 5 NSF w/ Water Quality 8.32 6.40/ESU NSF w/ Detention and Water 8.32 4.83/ESU Quality Treatment NSF w/ Retention and Water 8.32 3.03/ESU Quality Treatment C Effective as of the first full billing cycle after January 1 2010, the monthly rates for storm drainage service shall be: 1 Single-Family Residential Parcels and Two-Family Residential Parcels. The single- family and two-family residential monthly charge shall be $14.18 per month. 2 Non-Single-Family Parcels (NSF). Customer Classes Non-Single-Family NSF w/ Detention NSF w/ Retention NSF w/ Water Qualit Base Rate Per Month 8.82 8.82 $8.82 8.82 8.82 ESU Rate Per Month $11.29/ESU $9.07/ESU $5.61 /ESU $6.78/ESU $5.12/ESU NSF w/ Detention and Water Quality Treatment NSF w/ Retention and Water Quality Treatment 8.82 3.21 /ESU The customer classes set forth in this subsection shall be applicable only if the qualifying on-site facilities have met applicable city standards upon installation, have received city approval of construction, and are soe#g-in conformity with the applicable operations and maintenance standards. In the event that the city determines that the operation and maintenance standards are not being complied with, the customer class shall be determined to be that of non-single-family only, until operation and maintenance of said facilities meet city standards; whereupon, the customer being billed may reapply for system inspection, in writing, for reclassification to the previous class. The monthly charge for non-single-family parcels shall be based upon the following formula: BASE CHARGE + (TNESU * RATE) = Storm Drainage Charge, where TNESU Total number of equivalent service units contained on the parcel. An equivalent service unit has been determined to be 2,600 square feet of impervious surface, or any fraction thereof as defined in ACC 13.48.110. OD. Developed Parcels. Only developed parcels containing impervious surfaces as defined in ACC 13.48.010 shall be charged. 9E. Multiple Class Accounts. When a developed non-single-family parcel contains more than one customer class, the appropriate rate for each customer class will be calculated, and the aggregate total summed for billing. (Ord. 5876 § 3, 2004; Ordinance No. 6204 September 10, 2008 Page 6 Ord. 5853 § 1, 2004; Ord. 5530 § 1, 2001; Ord. 5504 § 1, 2001; Ord. 5360 § 1, 2000; Ord. 5293 § 2, 1999; Ord. 5212 § 1 (Exh. J), 1999; Ord. 4492 § 4, 1991.) Section 3. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this ordinance. Section 4. Severability. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application of the provision to other persons or circumstances shall not be affected. Section 5. Effective date. This Ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication, as provided by law. INTRODUCED: PASSED: APPROVED: PETER B. LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk ARPROVE,E? TO FOPr,,M: lYaniel B. Rd, City Attorney PUBLISHED: ---------------------- Ordinance No. 6204 September 10, 2008 Page 7