HomeMy WebLinkAboutA001 - Council Action Form dated April 9, 2013 ITEM # 32
DATE: 04-09-13
COUNCIL ACTION FORM
SUBJECT: WATER AND SEWER RATE ADJUSTMENTS
BACKGROUND:
On March 26, 2013, staff presented Council with an overview of the Water and Sewer
Funds. At the conclusion of the presentation, Council directed staff to prepare a
rate increase ordinance to increase water rates by 6% and sewer rates by 9%.
Both rate increases are to be "across-the-board" and will be effective for utility
bills mailed on and after July 1, 2013.
The attached ordinance accomplished the Council's direction and is ready for Council
approval.
ALTERNATIVES:
1. Approve the attached rate ordinance, thereby increasing water rates by 6% and
sewer rates by 9% effective July 1, 2013.
2. Direct staff to make modifications to the rate ordinance.
3. Do not take any action to adjust water and sewer rates at this time.
MANAGER'S RECOMMENDED ACTION:
The proposed rate increases are necessary to fund the on-going operations and
maintenance budget, plus the anticipated capital improvements projects for the two
utilities. While Council is taking no action at this time on future-year rate increases, it is
important to note that additional increases in future years will also be necessary to fully
fund the Capital Improvements Plan for these utilities.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby approving the attached rate ordinance increasing water rates
by 6% and sewer rates by 9% effective July 1, 2013.
ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY
OF AMES, IOWA, BY AMENDING SECTION 28.201(1)(b)(ii)(a)(b),
(2)(b)(ii)(a)(b), (3)(b)(ii)(a)(b), (4)(b)(ii)(a)(b), (5)(b)(ii)(a)(b), (7), (8),
SECTION 28.304(3), THEREOF, FOR THE PURPOSE OF WATER
AND SEWER RATE REVISIONS; REPEALING ANY AND ALL
ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE
EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN
EFFECTIVE DATE.
BE IT ENACTED,by the City Council for the City of Ames, Iowa,that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by
amending Section 28.201(1)(b)(ii)(a)(b), (2)(b)(ii)(a)(b), (3)(b)(ii)(a)(b), (4)(b)(ii)(a)(b), (5)(b)(ii)(a)(b), (7), (8),
Section 28.304(3)as follows:
"Sec.28.201.WATER RATES AND CHARGES
The rates and charges for water supplied to consumers by the water utility of the city,to be billed on or after July 1,
2013 are as follows:
(1) Residential Rates.
(a) Availability. The residential rate shall apply to all customer accounts within the Ames
corporate limits serving properties that are intended for occupancy by a single family as defined
by the Ames Zoning Ordinance,provided that such accounts consist of no more than two dwelling
units served by a single water meter or to multiple unit residential structures (such as apartment
buildings) where every dwelling unit is separately metered. The rate does not apply to domestic
uses that consist of more than two dwelling units served by a single meter or to water accounts
that provide service for common areas such as shared laundry facilities or for general property
maintenance.
(b) Rate per billing period. For each monthly billing period a residential rate customer:
(i) shall be charged a minimum charge based on meter size,and in addition
(ii) shall be charged for water usage during the billing periods as follows:
(a)for bills mailed on or between July 1 and October 31 (summer period):
$0.0207 per cubic foot for the first 1000 cubic feet of usage
$0.0365 per cubic foot for the next 1500 cubic feet of usage
$0.0548 per cubic foot for all usage over 2500 cubic feet
(b)for bills mailed on or between November 1 and June 30(winter period):
$0.0207 per cubic foot
(2) Non-residential(Commercial)Rates
(a) Availability. The non-residential rate shall apply to all accounts that do not meet the
criteria for residential,irrigation and yard water,rural water,or preferred industrial rates.
(b) Rate per billing period: For each monthly billing period a non-residential customer:
(i)shall be charged a minimum charge based on meter size,and in addition
(ii)shall be charged for water usage during the billing periods as follows:
(a)for bills mailed on or between July 1 and October 31 (summer period):
$0.0270 per cubic foot
(b)for bills mailed on or between November 1 and June 30(winter period):
$0.0207 per cubic foot
(3) Non-Peaking Industrial Rate.
(a) Availability. The non-peaking industrial rate shall be available to all non-residential rate
customers who meet the following criteria:
(i)Average winter usage greater than 100,000 cubic feet per billing period.
Average winter usage per billing period will be calculated by taking the sum of the usage
during the most previous December, January, and February billing periods and dividing
by three.
(ii)A summer peaking factor equal to or less than 120%. The summer peaking factor
shall be computed by taking the largest consumption billed during the most recent
summer billing periods (bills mailed July, August, September, and October) and dividing
it by the average winter usage, with the result expressed as a percentage.
(b) Rate per Billing Period. For each monthly billing period a non-peaking industrial rate
customer:
(i)shall be charged a minimum charge based on meter size,and in addition
(ii)shall be charged for water usage during the billing periods as follows:
(a)for bills mailed on or between July 1 and October 31 (summer period):
$0.0207 per cubic foot
(b)for bills mailed on or between November 1 and June 30(winter period):
$0.0207 per cubic foot
(4) Irrigation and Yard Water Service Rate.
(a) Availability. The irrigation and yard water rate shall apply to all separately metered
water uses that meet one of the following criteria:
(i) Serves primarily outdoor water uses, such as irrigation systems and outside hose bibs.
(ii) Serves cooling towers, spray ponds, evaporative condensers, chillers, or such similar
uses where water is used as a medium for cooling.
(iii) Serves as a temporary water service, whether for irrigation purposes or for other
outdoor uses.
(b) Rate per Billing Period.For each monthly billing period an irrigation and yard water rate
customer:
(i)shall be charged a minimum charge as described below, and in addition
(ii)shall be charged for water usage during billing periods as follows:
(a)for bills mailed on or between July 1 and October 31 (summer period):
$0.0298 per cubic foot for the first 2000 cubic feet of usage
$0.0548 per cubic foot for the next 3000 cubic feet of usage
$0.0913 per cubic foot for all usage greater than 5000 cubic feet.
(b)for bills mailed on or between November 1 and June 30(winter period):
$0.0207 per cubic foot
(5) Rural Water Rate.
(a) Availability. The rural water rate shall apply to all customer accounts outside the Ames
corporate limits,except those covered by a separate wholesale contract or agreement for service.
(b) Rate per billing period.For each monthly billing period, a rural water rate customer:
(i) shall be charged a Rural water minimum charge based on meter size.
(ii) shall be charged for water usage during billing periods as follows:
(a)for bills mailed on or between July 1 and October 31 (summer period):
$0.0342 per cubic foot for the first 2000 cubic feet of usage
$0.0630 per cubic foot for the next 3000 cubic feet of usage
$0.1048 per cubic foot for all usage greater than 5000 cubic feet.
(b)for bills mailed on or between November 1 and June 30(winter period):
$0.0238 per cubic foot for all consumption.
(6) Water Rate and Charge Adjustments. It shall be the duty of the director of water and pollution
control to review and recommend to the city council revisions of the rates and charges established and set out in this
division at intervals appropriate to provide for the funding needs of the utility.
(7) Minimum charges. For each monthly billing,each customer shall be charged a minimum monthly
charge based on the size of the water meter (s) and/or irrigation meter (s) at each location. The minimum monthly
charge may be prorated,based on a 30-day billing period, for the customer's initial and/or final bills,provided that in
no case shall the minimum monthly charge be less than five dollars and seven cents ($5.07). The minimum monthly
charge for each water meter location shall be as follows:
Residential,
Non-residential,
Size of Non-peaking Industrial, Yard Water Rural Water
Meter and Irrigation Accounts Accounts Accounts
5/8"or 5/8"x3/4" 10.56 4.00 12.14
3/4 inch 21.12 6.21 24.29
1 inch 42.24 8.65 48.58
1-1/2 inch 84.48 11.93 97.15
2 inch 168.96 15.86 194.30
2 inch,battery of 2 327.26 -- 376.35
2 inch,battery of 3 485.63 -- 558.47
3 inch 337.84 20.63 388.52
4 inch 570.08 25.65 655.59
6 inch 950.13 30.72 1,092.65
8 inch 1,900.26 35.79 2,185.30
10 inch 2,850.39 40.48 3,277.95
(8) Multiple dwellings-Mobile home parks. Multiple dwellings, including mobile home parks,
may be serviced from a single water meter. However,there shall be a surcharge added to the water rates set forth
above,to be calculates as follows:
For a 5/8 inch meter serving 2 or more dwelling units.............................. 3.04/month/unit
For a 3/a inch meter serving 4 or more dwelling units................................ 3.04/month/unit
For a I inch meter serving 8 or more dwelling units................................. 3.04/month/unit
For a 1-1/2 inch meter serving 16 or more dwelling units......................... 3.04/month/unit
For a 2 inch meter serving 30 or more dwelling units.................................... 90.96/month
for the first 30 units plus $4.72/month per unit for each
additional unit in excess of 30 units
For a 3 inch or larger meter serving any number of dwelling units...........4.18/month/unit
For the purposes of this section, a dwelling unit is defined as a self-contained living facility(i.e., including
kitchen and bath)such as an apartment or a licensed independent mobile home space.
(a) For rural customer accounts outside the Ames corporate limits, the multiple unit
charges shown above shall be multiplied by a factor of 1.15.
Sec.28.304. SEWER RATES ESTABLISHED.
(1) Each user shall pay for the services provided by the City based on his use of the treatment works
as determined by water meter readings or other appropriate methods acceptable to the City.
(2) For all users, monthly user charges shall be based on actual water usage, except where a practical
method of wastewater measurement is available. If a user has a consumptive use of water, or in some other manner
uses water which is not discharged into the wastewater collection system,the user charge for that contributor may be
based on readings of a wastewater meter(s) or separate water meter(s) installed and maintained at the user's expense
and in a manner acceptable to the City.
(3) For each monthly billing on or after July 1, 2013, each customer shall be charged a minimum
monthly charge. The minimum charge for each location shall be nine dollars and forty-four cents ($9.44). The
minimum monthly charge may be prorated, based on a 30-day billing period, for the customer's initial and/or final
bills, provided that in no case shall the prorated minimum monthly charge be less than three dollars and sixty-three
cents ($3.63). In addition, for all water metered beginning with the first cubic foot each month, each user shall pay
two dollars and forty-one cents($2.41)per 100 cubic feet.
(Ord. No. 3168, Sec. 1, 4-28-92; Ord. No. 3326, Sec. 2, 5-9-95; Ord. No. 3834, 5-24-05; Ord.No. 3956, 06-10-08)
Section Two. All ordinances, or parts of ordinances,in conflict herewith are hereby repealed to the extent
of such conflict,if any.
Section Three. This ordinance shall be in full force and effect from and after its passage and publication as
required by law.
Passed this day of ,20_.
Diane R.Voss,City Clerk Ann H. Campbell,Mayor