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HomeMy WebLinkAbout1997-23 Water Fees , "'.1 .... .' RESOLUTION NO. 97-.&3..3 A RESOLUTION ADOPTING WATER CONNECTION FEES AND WATER USE FEES PURSUANT TO SECTION 14.04.030 OF THE ASHLAND MUNICIPAL CODE AND REPEALING RESOLUTIONS 94-60. THE MAYOR AND CITY COUNCIL OF THE CITY OF ASHLAND DO RESOLVE AS FOLLOWS: SECTION I. The "Water Rate Schedule" marked Exhibit "A" and attached to this Resolution is adopted as the water rates for use and sale of water inside and outside the City limits from the municipal water system. SECTION 2. The "Water Connection Fee Schedule" marked Exhibit "B" and attached to this Resolution is adopted as the rates for water service and connection fees from the municipal water system. SECTION 3. The Water Rate Schedule adopted on Exhibit "A" shall be increased to account for inflation annually on January 1st, based on the Consumers Price Index - All Urban Consumer Portland Index (CPI-V) July to July, provided that no other increases were implemented within the last twelve months. The City Administrator will provide the City Council with a review of the rate structure biannually. SECTION 4. The Water Connection Fee Schedule adopted on Exhibit "B" shall be increased to account for inflation annually on July I st, based on the Engineering News Record Construction Cost Index (ENR Index) for Seattle, Washington. The current index is established at 5837 (May 97), provided that no other increases were implemented within the last twelve months. SECTION 5 . Fifty percent of the water connections fees established herein for the development of qualified affordable housing under the City's affordable housing laws, shall be deferred until the transfer of ownership to an ineligible buyer occurs. The deferred fees shall be secured by a second mortgage acceptable to the City bearing interest at not less than five percent per annum. Accrued interest and principal shall be due on the sale to an ineligible buyer. SECTION 6. Three copies of this Resolution and Exhibit "A" and "B" shall be maintained in the office of the City Recorder and shall be available for public inspection during regular business hours. SECTION 7. This resolution is effective July 1,1997. SECTION 8. Resolution 94-60 is repealed on the effective date of this Resolution. .. " . R.esolution 97- Page 2 SECTION 9. The fees and charges listed on the attached exhibits are classified as not subject to the limits of Section 11b of Article XI of the Oregon Constitution (Ballot Measure No.5) . This resolution was read by title only in accordance with Municipal Code ~2.04.090 duly PASSED and ADOPTED this ~ of L_ Ashland day , 1997. ;5~ Barbara Christensen, City R~~er SIGNED and APPROVED this day of ~ , 1997. R~ewed as to form: ~ ~ Olzj Paul Nolte, City Attorney ~ ~QkP'1~ Catherine M. Golden, Mayor' . . EXHIBIT "A" CITY OF ASHLAND, OREGON WATER RATE SCHEDULE RESOLUTION NO. 97-~ ADOPTED JUNE 3, 1997 EFFECTIVE DATE JULY 1, 1997 Exhibit A-1 CITY OF ASHLAND, OREGON METERED SERVICE ANNOTATED TO SHOW CHANGES. tl.LETIQN. ^~. L1N.D T~~O"\i~ AND ADDITIONS ARE $fmR~i:l. All water service provided by the City of Ashland will be in accordance,with Chapter 14.04 of the Ashland Municipal Code. 1. WATER RATES WITHIN THE CITY LIMITS A. MONTHLY SERVICE CHARGE: The basic service charge applies to all metered water services and does not include any water consumption. 0.75 Inch Meter $ 8.30/month 1 Inch Meter $ 16.60/month 1.5 Inch Meter $ 23. 65/month 2 Inch Meter $ 31. 15/month 3 Inch Meter $ 62.25/month 4 Inch Meter $ 99.60/month 6 Inch Meter $ 186.75/month 8 Inch Meter $ 311.25/month B. WATER QUANTITY CHARGE: All customers will be charged the following rates per cubic feet of water used. Sinqle Familv Residential Consumption o to 300 to 1000 to Over 300 cf per month 1000 cf per month 2500 cf per month 2500 cf per month $1.1C ;;1.30 $1.71 C2.1C $)96' /ccf mlli:i~ll / cc f $'1153 /ccf ~~!8~~ /ccf Multi-Familv Residential Consumption 0 to 300 cf per month 300 to 1000 cf per month 1000 to 2500 cf per month Over 2500 cf per month Non-Residential Consumption 0 to 50,000 cf per month Over 50,000 cf per month 0.1C ;;1.30 0.71 ;;2.1C ~!j:I~~ / cc f lilm.:m7 /ccf ,$""."""""'" / i~!~~ /~~~ lit"""",,,,,,,,,,,,,,,,, $1. 32 /ccf $1.37 /ccf Effective on or after Julv 1. 1997 EXHIBIT A-2 CITY OF ASHLAND, OREGON METERED SERVICE C. TID IRRIGATION WATER RATES: Unmetered Service $53.50/acre or portion of an acre Metered Service Base Service Charge Water Consumption Same as A, above $ .21/ccf D. BULK WATER RATE: For water provided on a temporary basis through a bulk meter on a fire hydrant the following charges apply: Deposit* Basic Fee Cost of Water $715.00 $90.00/installation Same as Commercial * Deposit is refundable less basic fee, cost of water, and any damage to the City meter, valve, wrench and/or hydrant. E. FIRE PROTECTION SERVICE WATER RATE: This rate shall apply to all Fire Protection services or Fire Guards. The basic service charge will be equal to the minimum basic service charge. Water will be billed at commercial rates. 2. RATES OUTSIDE THE CITY LIMITS All rates and charges for water service provided outside the City limits will be 1.5 times the rates for water service provided within the City limits. Effective on or after July 1. 1997 EXHIBIT "B" CITY OF ASHLAND, OREGON WATER CONNECTION FEE SCHEDULE RESOLUTION NO. 97-~~ EFFECTIVE DATE JULY 1, 1997 '.- ..- EXHIBIT B CITY OF ASHLAND, OREGON INSTALLATION, CONNECTION AND OTHER FEES Effective July 1, 1997 ANNOTATED TO SHOW CHANGES. D.lHlg~l. ^~.lIN.g TM~Q""M AND ADDITIONS ARE$HAlllii'l. A. 3/4 inch service connection from main line including meter 1. If owner/builder/contractor provides trench and backfill $ ~~;..~g ~1i~I.II. B. 1 inch service connection from main line including meter 1. If owner/builder/contractor provides trench and backfill 1,1:J4.00 :J12.00 C. 1 1/2 inch service connection from main line including meter 1. If owner/builder/contractor provides trench and backfill 1,880.00 aae.gg D. 2 inch service connection from main line including meter 1. If owner/builder/contractor provide trench and backfill 1,708.00 B8d.00 E. 3 inch or larger service connection from main line F. S inch and one Fire Hydrant per 335 feet <17.00,'ft G. First utility locate at an address Additional locates at same address 1i~~ii~ l~i.I~I~1 .'Ilil~!. Cost 4~;Pgl# No Charge ~'44RRt H. Other water related fees Water meter re-read Once in 12 months Each additional re-read in 12 months Water Meter Field Test Water Meter Sench Test: 3/4" or 1 " Water Meter 1.5" or 2" Water Meter Larger meters billed Water line pressure check once in 12 months Each additional pressure check in 12 months Install Customer 3/4" hand valve Install Customer 1" hand valve ~ ~ $ BB.GO $ 21.00 ~ e2,.GG 114.00 2. RATES OUTSIDE THE CITY LIMITS No Charge $22:00 ..,................, siMon !Il~;)!q ,tgp:pO Actual Cost No t~iQP ~lllll~~ All rates and charges for water service provided outside the City limits will be 1.5 times the rates for water service provided within the City limits. G:\jill\wp\council\water\9707rate.fin Effective on or after Julv 1. 1997 .. ,- ., MEMORANDUM To: From: Subject: Date: Mayor and City Council Jill Turner, Director of Finance fj- Water Use Rates r May 29,1997 Recommendation: Approve the attached resolution adopting the new water rates effective July I, 1997. The proposed rate schedule reduces an average residential customer bill by 7.7 percent. This is the first change in water rates since October of 1994. Background: In the fall of 1993 the City commisioned a water and sewer rate study. This comprehensive water study prepared, by Hilton, Famkopf and Hobson, looked at operating and capital costs through 1998, and included developing a water and sewer rate model for the City. Cost-of-service analysis was performed to allocate revenue requirements to the residential and non-residential customer classes. Costs were also allocated among water customers on the basis of their average and peak demands and on the basis of their meter sizes. This study recommended a new rate design, which was adopted March of 1994. In that year, the City faced many uncertainties as discussed below: March '94 April '94 June '94 The new water rate design and schedule were implemented. This design was to encourage the wise use of water through increasing block rates, but was a totally new design for the City water rates. The City Council authorized the staff to proceed with the issuance of bonds for the $2 million upgrade to the Water Treatment Plant. A state-wide ballot measure was certified which, upon voter approval, would have precluded any further utility rate increases without a vote of the people. This ballot measure failed in November '94. A resolution was passed increasing water rates effective October I. This was prepared without the knowledge gained by using the rate model through a peak water use period. This was necessary because of the water revenue bond covenant, which required that the City ensure that water revenues would be adequate to provide for the ongoing operations and maintenance of the water system as well as all debt service. Since revenues received by the City are very dependent on weather and fluctuate widely from year to year, it was necessary to be conservative in our estimates to satisfY this covenant. '. ., Water Use Rates Page 2 July '94 The City Council approved increasing the bond issue from $2 million to $3.8 million based upon the more complete engineers' estimates of the cost to epgrade the Water Treatment Plant. Aug-Sept '94 Water curtailment was instituted for approximately one month. October '94 The City issued water revenue bonds for the construction of the Water Treatment Plant. Summer '96 Ample water supply and hot dry weather contributed to increased water revenues for the City. Sept '96 Water Treatment Plant was completed for a cost of$3.8 million. The City was able to reduce staffing at Water Treatment Plant from a total of six employees to two employees, resulting in personnel savings. January' 97 The flood caused approximately $985,000 damage to the water system. May '97 The citizens approved a bond issue paying for the flood damage capital costs not reimbursed by FEMA. May '97 The water rate model was updated based on the 1997-98, 1998-99, and 1999-2000 budgets. This included more recent operational data, and separate multi-family water-use statistics based on actual data. In the previous model, this information was estimated because this customer group was included with commercial customers. Some of the most common asked questions may be as follows: Since water rates are going down do I get a refund? No. The City needs to replace the roofto Crowson Water Reservoir during 1997-98. This larger-than-expected cost will require excess fund balance or carryover to be used. Why doesn't a commercial customer receive a rate reduction? The recent rate study shows that the current rate charged to this customer class is adequate to cover the costs of this customer group. What is my savings? The average residential customer will see their annual water bill drop from $293.24 annually to $270.60. This is equal to an average $22.94 (7.72 percent) annually or $1.89 per month. Will my sewer rate go down also? No, this does not directly effect your sewer bill. Your sewer bill is calculated on the average water metered in January through March. If you change your water use pattern during this winter period, then your sewer bill will be effected. " ..- c ~..' " Water Use Rates Page 3 How long should these rates be goodfor? The proposed rates should be adequate for the next couple of years, based on the current operational standards and capital improvement plan. There is discussion within the community about a water exchange with TID and a Medford intertie project with Talent. Since these projects are in the conceptual stages and no decisions on water supply have been made by the City council these costs have not been included. . The eleven-page water rate model is available from the Finance Department upon request. Attachment: Resolution 97-~ adopting new fees effective July 1, 1997.