HomeMy WebLinkAboutA002 - Old Council Action Form dated April 11, 2000 IIIJJJ
Item # eA
Date: April 11, 2000
COUNCIL ACTION FORM
SUBJECT: CHANGING THE STORM WATER DRAINAGE SYSTEM RATE
ORDINANCE 28.802 TO REFLECT AN INCREASE IN THE STORM SEWER UTILITY
FEE AS APPROVED IN THE 2000101 BUDGET.
BACKGROUND:
The current storm sewer utility fee is $1.25/month/utility account. This fee has been in
effect since July 1, 1997. Revenue collected from the storm sewer utility fee is used for
storm sewer maintenance activities, mainly the Storm Sewer Intake Repair program
found in the Capital Improvements Program ($150,000) and the storm sewer
maintenance activities found in the Public Works operations budget ($156,000).
Currently, the city has approximately 2,500 storm sewer intakes, and it is estimated that
50% of these storm sewer intakes are in need of repair. Each year repair of 75 storm
sewer intakes are budgeted and completed, resulting in a 17-year replacement cycle for
those intakes in need of repair. These repairs are done by using both contractors and
city crews. The cost of repair of these storm sewer intakes (labor as well as materials)
has been increasing over the last couple of years. In order to remain at the 17-year
replacement cycle for those intakes in need of repair, a $ .25/month/utility account
increase in the storm sewer utility fee is included in the 2000/01 budget to cover the
cost of this additional expense.
City of Ames Municipal Code Section 28.802—Storm Water Drainage System Rate
Ordinance—currently reads as follows: "With respect to each city water utility service,
and alternatively, for each city electric utility service where there is no city water service,
a monthly rate of one dollar and twenty-five cents shall be,charged, paid and collected
as a rate for a storm water drainage system." The words "With respect to each city
water utility service, and alternatively, for each city electric utility service where there is
no city water service, ..." have created confusion for utility customers. Therefore, for
clarity, when the ordinance is revised with the new $1.50 fee, the wording should also
be changed to read: "With respect to each utility account which is billed for one or
more City utility services, a monthly rate of..."
Because of the new requirements established by EPA for stormwater quality
management, it is likely that further rate increases will be needed. The City will be
required to have a program in place to meet these standards by February 2002. Rate
increases that may be required by the federal legislation will be included in the 2001/02
budget discussions when more details about the requirements are ascertained.
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CAF — Change Storm Water Drain Rate
April 11, 2000
Page 2
ALTERNATIVES:
1 Direct the City Attorney to prepare an ordinance to revise the Storm Water
Drainage System Rate Ordinance 28.802 to read: "With respect to each utility account
which is billed for one or more City utility services, a monthly rate of one dollar and fifty
cents shall be charged, paid and collected as a rate for a storm water drainage system."
This will bring the ordinance into compliance with the approved 2000/01 budget.
2. Do not revise the Storm Water Drainage System Rate Ordinance 28.802,
thereby, allowing the rate to remain at $1.25/month/utility account and increasing the
number of years it will take to repair the existing storm sewer intakes that are in poor
condition.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt alternative
number 1, and direct the City Attorney to prepare an ordinance revision whereby the
Storm Water Drainage System Rate Ordinance 28.802 will be changed to read: "With
respect to each utility account which is billed for one or more City utility services, a
monthly rate of one dollar and fifty cents shall be charged, paid and collected as a rate
for a storm water drainage system."
COUNCIL ACTION: