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HomeMy WebLinkAboutA001 - Council Action Form dated March 10, 2020 ITEM # 30 DATE 03-10-20 COUNCIL ACTION FORM SUBJECT: WATER AND SEWER RATE ADJUSTMENTS FOR FY 2020/21 BACKGROUND: Each year as a part of the annual budget process, staff updates a spreadsheet model for the Water and Sewer Funds that reflects current and projected operating and capital expenses for the utilities over the next ten years, and the resulting annual ending fund balance in each of the funds. This model is used to establish a long-range pattern of rate increases that will fully fund these self-funded enterprise utilities, including a 25% operating reserve. During the development of the FY 2020/21 budget, staff determined that a two percent (2%) increase to water rates and a five percent (5%) increase to the sewer rates would be needed, effective July 1, 2020. While the revenue estimated to be generated from the rate increases was appropriated in the FY 2020/21 budget, no formal action has yet been taken to adjust the rates. Attached to this Council Action Form is a draft ordinance that will increase the water rates by 2% and the sewer rates by 5%, effective for all bills mailed on or after July 1, 2020. The slides attached to this Council Action Form provide a summary of the fund balance analysis in a format that is very similar to what has been used in prior years. Highlights from these slides will be shared at the Council meeting in a brief presentation. ALTERNATIVES: 1. Approve on first reading, an ordinance that adjusts water rates by two percent (2%) and sewer rates by five percent (5%), effective for bills mailed on or after July 1, 2020. 2. Direct staff to make modifications to the rate ordinance. 3. Do not take any action to adjust water or sewer rates, and give staff direction on expenditure reductions in order to maintain positive fund balances. MANAGER'S RECOMMENDED ACTION: The proposed rate increase is necessary to fund the on-going operations and maintenance budget plus the anticipated capital improvements projects. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, thereby approving on first reading an ordinance that adjusts water rates by two percent (2%) and sewer rates by five percent (5%) effective for bills mailed on or after July 1, 2020. ORDINANCE NO. AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY REPEALING CHAPTER 28, SECTION 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 304 (3) AND ENACTING A NEW CHAPTER 28, SECTION 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 304 (3). THEREOF, FOR THE PURPOSE OF INCREASE OF WATER RATES AND CHARGES; 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 repealing Chapter 28, Section 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 304 (3) and enacting a new Chapter 28, Section 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 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, 2020 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): $0.0243 per cubic foot for the first 1000 cubic feet of usage $0.0428 per cubic foot for the next 1500 cubic feet of usage $0.0644 per cubic foot for all usage over 2500 cubic feet (b) for bills mailed on or between November 1 and June 30(winter period): $0.0243 per cubic foot (Ord. No. 4351, 5-8-18; Ord. No. 4382, 4-9-19) (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 non-peaking 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): $0.0318 per cubic foot (b) for bills mailed on or between November 1 and June 30(winter period): $0.0243 per cubic foot (Ord. No. 4351, 5-8-18; Ord. No. 4382, 4-9-19) (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): $0.0243 per cubic foot (b)for bills mailed on or between November 1 and June 30(winter period): $0.0243 per cubic foot (Ord. No. 4351, 5-8-18; Ord.No. 4382, 4-9-19) (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): $0.0350 per cubic foot for the first 2000 cubic feet of usage $0.0644 per cubic foot for the next 3000 cubic feet of usage $0.1072 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): $0.0243 per cubic foot (Ord. No. 4351, 5-8-18; Ord.No. 4382, 4-9-19) (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): $0.0402 per cubic foot for the first 2000 cubic feet of usage $0.0740 per cubic foot for the next 3000 cubic feet of usage $0.1233 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): $0.0274 per cubic foot for all consumption (Ord. No. 4351, 5-8-18; Ord.No. 4382, 4-9-19) (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 ninety-six cents($5.96). 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" 12.40 4.70 14.27 3/4 inch 24.81 7.29 28.53 1 inch 49.62 10.16 57.07 1-1/2 inch 99.25 14.01 114.14 2 inch 198.49 18.64 228.27 2 inch,battery of 2 384.46 -- 442.13 2 inch,battery of 3 570.51 -- 656.08 3 inch 396.89 24.24 456.43 4 inch 669.72 30.13 770.18 6 inch 1,116.20 36.09 1,283.63 8 inch 2,232.39 42.04 2,567.25 10 inch 3,348.59 47.55 3,850.88 (Ord. No. 4351, 5-8-18; Ord. No. 4382, 4-9-19) (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 calculated as follows: For a 5/8 inch meter serving 2 or more dwelling units............. 3.57/month/unit For a 3/a inch meter serving 4 or more dwelling units............... 3.57/month/unit For a 1 inch meter serving 8 or more dwelling units................ 3.57/month/unit For a 1-1/2 inch meter serving 16 or more dwelling units........ 3.57/month/unit For a 2 inch meter serving 30 or more dwelling units................. 106.86/month for the first 30 units plus$5.55/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.......... 4.91/month/unit Sec. 28.304. SEWER RATES ESTABLISHED. (1) Each user shall pay for the services provided by the City based on its use of the treatment works as determined by water meter readings or other appropriate methods acceptable to the City. (Ord. 4199, 11-25-14) (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, 2020, each customer shall be charged a minimum monthly charge. The minimum charge for each location shall be eleven dollars and fifty-eight cents ($11.58). 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 four dollars and forty-five cents ($4.45). In addition, for all water metered beginning with the first cubic foot each month, each user shall pay two dollars and ninety-six cents ($2.96)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;Ord. No. 4037, 5-11-10; Ord. No. 4144, 5-14-13; Ord. No. 4814, 5-27-14; Ord. No. 4215, 5-12-15; Ord. No. 4351, 5-8-18) 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 Diane R.Voss,City Clerk John A.Haila,Mayor t'W/A1�A j� •�� qMrs , '�* *gyp i __ iid us- 1. i w FY 2020-2021 Water & Sewer Rates Entry signage at the Ames Water Treatment Plant March 10, 2020 and Ames Water Pollution Control Facility POLLUTIONCITY OF Aio7u, Ames, CONTROL Outline • National & State-Wide Trends in Rates s �I�II�YI' • Projected Need for Revenue Increase • Translating Revenue Needs to Rates • Customer Perspective Water meters lined up on a test bench • Council Direction • 1 t 1 Mom � pFer National & State-Wide Trends Visitors at the inaugural open house tours of the new Ames Water Plant National and State Trends Data sources include:_ �— i • 2018 Cost of Clean Water Index National Association of Clean Water Agencies • 2019 Water and Wastewater Rate Survey f _ " � r American Water Works Association • 2019 Iowa Water and Wastewater Rate Survey City of Ames Water and Pollution Control Solids Contact Unit in service Ames Water Plant National Trends 2018 Cost of Clean Water Index, NACWA Projected National Annual Change in Cost, Based on Approved and Anticipated Rate Increases- NACWA • Average annual wastewater bill has doubled 8% nationally in last 15 years 6% • Wastewater utilities expect charges to increase from 3.4% to 3.7% per year for the next 5 years 4" 3.6, 3.5/0 3.7% 3.4/0 3.6, • Nationally, the average increase in 2018 was 1.6x the 2% rate of inflation 117t" consecutive ear that sewer rates national) 0% ` y y 2019 2020 2021 2022 2023 have outpaced inflation) National Trends 2019 Water & Wastewater Rate Survey, American Water Works Association • 79% of Drinking Water Utilities nationally have ' increased rates in the past two years • 77% of Wastewater Utilities nationally have increased rates in the past two years. • Lowest costs for both water and sewer were in the Midwest Water main break repair in Ames circa 1953 National Trends 2014 to 2019 ' M p Average Annual Increase in Water Rates: 4.8% - I J Average Annual Increase in Sewer Rates: 4.1% 0000 a I Average Annual Increase in CPI . 2.0/ Sources: 2014 Water and Wastewater Rate Survey,AWWA/Raftelis Financial Consultants Cogeneration switchgear 2019 Water and Wastewater Rate Survey,AWWA/Raftelis Financial Consultants Ames Water Pollution Control Facility Recent Rate Adjustments in Ames Water Sewer FY 15/16 4% 5% y �r FY 16/17 -- -- FY 17/18 -- -- FY 18/19 3.5% 3% FY 19/20 7% -- Annual Average 2.9% 1.6% pH meter and buffers Ames Water Plant Ames Trends vs . National Trends rWater National Average Annual Increase: 4.8% _ Ames Average Annual Increase: 2.9% w;A: ` Treatment \ Plant ''Q'r' Sewer National Average Annual Increase: 4.1% �1 Ames Average Annual Increase: -L.0% �� = " "0 www.cltyaramea.or � g/water ,`! Average Annual Increase in CPI : 2.0% P rottiry ec nrotr National and CPI Data:2014—2019 Ames Data:2015—2019 Smart Water Conservation Promotion Water& Pollution Control Dept. Iowa Trends 2019 Iowa Water & Wastewater Rate 5 u rvey, City of Ames, Iowa Percent of Utilities with a rate increase in past two years: AMEv • Drinking Water: 76% (22 of 29) • More than 5%: 59% (17 of 29) - • More than 10%: 28% (8 of 29) 7 • Wastewater: 72% (31 of 43) _ • More than 5%: 53% (23 of 43) • More than 10%: 23% (10 of 43) Bloomington Road Elevated Tank atsunset Ames Trends vs . Iowa Trends 2015-2019 Trends Water Iowa Average Annual Increase: 5.9% times Average Hnnuai increase: Sewer Iowa Average Annual Increase: 5.1% ' Ames Average Annual Increase: 1.6 % Average Annual Increase in CPI : 2.0% Iowa,Ames, and CPI Data:2015—2019 1 million gallon elevated tank Mortensen Road and County Line Road Iowa Trends in Water Rates 1999-2019, Cities with population >10,000 with lime softening, 600 cf per month $50 ■ ■ ■ 1 $40 ■ $30Iowa do JL ■ ■ ■ i �* ■ $20 ■ _s 'olopop—Air $10 ■ $0 1998 2003 2008 2013 2018 — — — — — — — — —0 Statewide Median Ames Rates Ames is at the 361" percentile, based on 2019 rates 12 ComparingAcross Water Demand Thresholds Cities with population >10,000 with lime softening, 2019 $50.00 $900.00 $9,000.00 ■ $80.00 $800.00 ■ $8,000.00 ■ ■ $40.00 ■ $700.00 $7,000.00 ■ ■ $600.00 $60.00 $6,000.00 ■ ■ $30.00 $500.00 $5,000.00 ■ n $400.00 $4,000.00 ' $40.00 ■ $20.00 . $300.00 $3,000.00 ■ ■ ■ $200.00 $2,000.00 ■ ■ $10.00 $20.00 $100.00 $1,000.00 600 cf 1,000 cf 10,000 cf 100,000 cf • Statewide Median Ames Rates 13 Iowa Trends in Sewer Rates 1999-2019, Cities with population >10,000, 600 cf per month $70 $60 ■ $50 $40 $30 ■ ■ dw $20 i ■ ■ $10 $0 1998 2003 2008 2013 2018 — — — — — — — — —0 Statewide Median Ames Rates Ames is at the 241" percentile, based on 2019 rates 14 ComparingAcross Sewer Demand Thresholds Cities with population >10,000, 2019 $60.00 $100.00 • $1,000.00 $10,000 ■ $50.00 � $80.00 $800.00 $8,000 ■ ■ $40.00 • ■ ■ $60.00 ■ ■ $600.00 $6,000 $30.00 1 '■ $40.00 . $400.00 $4,000 -� $20.00 ■ ' ■ . 11 ■$10.00 $20.00 - $200.00 ■ $2,000 ■ $0.00 • $0.00 $0.00 $0 600 cf 1,000 cf 10,000 cf 100,000 cf Statewide Median Ames Rates 15 Iowa section Iowa section \ American Water American Water - Works Association Works Association \ 2017 2018 ater Taste Water Taste Testing Testing Competition Competition Ames Ames me Water Plant Water Plant Voted Best Tasting Water In Iowa at the Voted Best Tasting Water IA-AWWA Annual Conference in Iowa at the IA-AWWAAnnual Conference Revenue Need and Rate Adjustments in Ames Best Tasting Water in Iowa 2017& 2018 Water Revenue Sources FY 19/20 Amended Budget All Other Revenues, Rate-Derived Revenue, $431,145 $10,365,400 Grants & Donations, $42,290 ISU Contract Sales, $949,000 Total Revenue Estimate: $11.79M Water Rate- Derived Revenue FY 19/20 Amended Budget Consumption, Yard Meter Minimum $5,721,000 Charge, $73,400 Multi-unit Charge, $355,000 Minimum Charge, $4,216,000 Rate-Derived Revenue Estimate: $10.37M 18 Sewer Revenue Sources FY 19/20 Amended Budget ISU Contract, $1,365,000 NADC Contract, $414,000 Rate Derived Revenue, NVSL Contract, $,7,111,0 0 $46,000 Pretreatment / FOG $230,500 All Other Revenues, $229,500 Total Revenue Estimate: $9.40M Sewer Rate- Derived Revenue FY 19/20 Amended Budget Minimum Charge, $2,3 78,000 r Consumption, $4,733,000 Rate-Derived Revenue Estimate: $7.11M 20 Current Water Rates ( $/cf) I Winter All customers; all consumption $0.0238 Summer I Residential Block 1 (First 1,000 cf) Block 2 (Next 1,500 cf) $0.0238 Block 3 (Over 2,500 cf) $0.0420 Irrigation &Yard Water $0.0631 Block 1 (First 2,000 cf) �/y 0 Block 2 (Next 3,000 cf) $0.0343 I�l Block 3 (Over 5,000 cf) $0.0631 $0.1051 Non-Residential All consumption $0.0311 Non-Peaking Industrial Piping in High Service Pump Room All consumption $0.0238 Ames Water Plant Current Sewer Rates ( $/cf Minimum Charge $11.03 All customers, per month Prorated Minimum $4.24 Consumption, per 100 cubic feet $2.82 All customers, all consumption j Primary Digester Ames Water Pollution Control Facility Water Fund Rate Model — No Adjustments 25,000 20,000 15,000 10,000 5,000 _ ,^n 3.5% 7.0% 0 0 o C 18-19 19-20 20-21 21-22 3-2 IK 2 - � -5,0002171 -10,000 c -15,000 m -20,000 c -25,000 W -30,000 -35,000 -40,000 -45,000 -50,000 Ending Fund Balance OOperating Reserve Percentage Rate Increase 23 Sewer Fund Rate Model — No Adjustments 20,000 T 15,000 10,000 N O c 5,000 m 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 2 8 m c -5,000 C c w -10,000 -15,000 -20,000 AW Ending Fund Balance OOperating Reserve s Percentage Rate Increase 24 r r "OKI 1, Developing Rate Recommendations old Water Pollution Control Facility Circa 1955 GuidingPhilosophy on Rates • Rate increases should be done with smaller percentage increases on a more frequent basis, as opposed to larger increases on a less frequent basis. • Slowly grow the operating reserve in each _ Fund over time until it reaches 25% of the Fund's annual operating expenses Limestone sign salvaged from the 1924 water plant, relocated to the new facility Water and Sewer Rate Projections Last Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year Year 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 Water Fund 3.5% 7% 2% 8% 2% 9% 2% 9% 9% 9% Sewer Fund 3% 5% 5% 8% 8% 8% J I � 04 �r �- --� J&Al �� ZEN Water Fund Rate Model 25,000 20,000 N O O O 15,000 m U C R R m 10,000 C W 5,000 3.5% 11 r.0% 2.0% 8.0% 2.0% 9.0% 2.0% 9.0% 0 R 1 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 Ending Fund Balance _Operating Reserve Percentage Rate Increase 28 Sewer Fund Rate Model 20,000 15,000 N O O O N 12 10,000 m m C C W 5,000 3% - 5% ■ 5% ■ 8% � 8% , - - 0 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 Ending Fund Balance L Operating Reserve s Percentage Rate Increase 29 Rate Projections vs . Statewide Trends Projected Ames Monthly Water and Sewer Bill vs 6-year Statewide Trends 600 cubic feet per month $225.00 $200.00 $175.00 $150.00 $125.00 $100.00 $75.00 $50.00 $25.00 $- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Statewide Range ---Ames Residential —a—Statewide Median 30 Revised Water Rates 2% Existing Increase New Winter All customers; all consumption $0.0238 $0.0005 $0.0243 Summer Residential Block 1 (First 1,000 cf) Block 2 (Next 1,500 cf) $0.0238 $0.0005 $0.0243 Block 3 (Over 2,500 cf) $0.0420 $0.0008 $0.0428 Irrigation &Yard Water $0.0631 $0.0013 $0.0644 Block 1 (First 2,000 cf) w Block 2 (Next 3,000 cf) $0.0343 $0.0007 $0.0350 } Block 3 (Over 5,000 cf) $0.0631 $0.0013 $0.0644 ■••� $0.1051 $0.0021 $0.1072 Non-Residential All consumption $0.0311 $0.0006 $0.0318 Bloomington Road Elevated Tank (BRET) as seen from above Non-Peaking Industrial All consumption $0.0238 $0.0005 $0.0243 Revised Sewer Rates 5% Existing Increase New / Minimum Charge $11.03 $0.55 $11.58 9 f 1 All customers, per month Prorated Minimum $4.24 $0.21 $4.45 Consumption, per 100 cubic feet $2.82 $0.14 $2.96 All customers, all consumption G Entry sign into the Trickling Filter Pump Station Ames Water Pollution Control Facility Associated Rates and Fees • Water minimum bills, multiple dwelling unit fees would also adjust bye% • Sewer high-strength surcharge, FOG, hauled waste, other sewer-associated fees would adjust by 5% • Meter setting fees would be adjusted based on actual cost recovery • Add and adjust fees for selected laboratory analytes 460 ow IF Mason Mingo -m- 71 NO Ames Water Plant - GL `•4 4. Ilk IL Customer Perspective Visitors waiting to tour new Water Plant 2017 Ribbon-cutting Ceremony ACITY OF A mes.. VVATER&POLLUTION CONTROL 34 Sample Customer Bill — Median Use Residential Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 600 kWh and 600 cf $81 .10 $4.95 $26.44 $27.95 $140.44 Electric ECA -$3.96 -$3.96 Totals $77.14 $4.95 $26.44 $27.95 $136.48 Increase Due to Rate Change $0.00 $0.00 $0.53 $1 .40 $1 .93 Totals $77.14 $4.95 $26.97 $29.35 $138.41 % Impact on Total Bill 1 .41% 35 A-, � Council Direction City Council Members serving during design and construction of the new Ames Water Treatment Plant Recommended Direction & Timeline • Adopt on first reading an ordinance to • Adjust Water Rates by 2% • Adjust Sewer Rates by 5% `d RIVER VALLEY LOW HEAD DAM '• • New rates effective July 1, 2020 � 1984 DEDICATED AS A MEMORIAL TU • Timeline • First DR. MERWIN D. DOUGAL 1928 1982 � � � PROFESSOR, IOWA STATE UNIVERSITY, ' reading on • (tonight) 1962 1982 t A NATIONALLY KNOWN AND RESPECTED EDUCATOR, ' • • read• • on March , ENGINEER. AND EXPERT IN WATER RE50URCES UNSELFISHLY CONTRIBUTED HIS TIME AND EXPERTISE AS A �°• CONCERNED CITIZEN TO ENHANCE THE WATER SUPPLY OF +�:• . Third• reading . • adoption on March 4 � THE CITY OF AMES - Memorial plaque at the Low head Dom Located in North River ValleyPark t'W/A1�A j� •�� qMrs , '�* *gyp i __ iid us- 1. i w FY 2020-2021 Water & Sewer Rates Entry signage at the Ames Water Treatment Plant March 10, 2020 and Ames Water Pollution Control Facility POLLUTIONCITY OF Aio7u, Ames, CONTROL � r i. f4 , • a tttttttt�t� t�1NW7w t� ,�r ;,y N i • � �wa-——� � I �I • I I • CITY OF Ames, VVATER&POLLUTION CONTROL 39 Sample Customer Bill — Minimal Use Residential Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 100 kWh and 100 cf $20.45 $4.95 $14.54 $13.85 $53.79 Electric ECA -$0.66 -$0.66 Totals $19.79 $4.95 $14.54 $13.85 $53.13 Increase Due to Rate Change $0.00 $0.00 $0.29 $0.69 $0.98 Totals $19.79 $4.95 $14.83 $14.54 $54.11 % Impact on Total Bill 1 .84% 40 Sample Customer Bill — Median Use Residential Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 600 kWh and 600 cf $81 .10 $4.95 $26.44 $27.95 $140.44 Electric ECA -$3.96 -$3.96 Totals $77.14 $4.95 $26.44 $27.95 $136.48 Increase Due to Rate Change $0.00 $0.00 $0.53 $1 .40 $1 .93 Totals $77.14 $4.95 $26.97 $29.35 $138.41 % Impact on Total Bill 1 .41% 41 Sample Customer BiII — Large Residentia Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 1 ,000 kWh and 11000 cf $129.62 $4.95 $35.96 $39.23 $209.76 Electric ECA -$6.60 -$6.60 Totals $123.02 $4.95 $35.96 $39.23 $203.16 Increase Due to Rate Change $0.00 $0.00 $0.72 $1 .96 $2.68 Totals $123.02 $4.95 $36.68 $41 .19 $205.84 % Impact on Total Bill 1 .32% Sample Customer Bill — Small Commercial ( GP Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 2,000 kWh and 600 cf $254.40 $4.95 $30.82 $27.95 $318.12 Electric ECA -$13.20 -$13.20 Totals $241 .20 $4.95 $30.82 $27.95 $304.92 Increase Due to Rate Change $0.00 $0.00 $0.62 $1 .40 $2.02 Totals $241 .20 $4.95 $31 .44 $29.35 $306.94 % Impact on Total Bill 0.66% 43 Sample Customer Bill — Small Commercial ( GP Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 5,000 kWh and 11000 cf $612.60 $4.95 $43.26 $39.23 $700.04 Electric ECA -$33.00 -$33.00 Totals $579.60 $4.95 $43.26 $39.23 $667.04 Increase Due to Rate Change $0.00 $0.00 $0.87 $1 .96 $2.83 Totals $579.60 $4.95 $44.13 $41 .19 $669.87 % Impact on Total Bill 0.42% 44 Sample Customer Bill — Small Commercial ( GP Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 10,000 kWh and 3,000 cf $1 ,209.60 $9.90 $117.62 $95.63 $1 ,432.75 Electric ECA -$66.00 -$66.00 Totals $1 ,143.60 $9.90 $117.62 $95.63 $1 ,366.75 Increase Due to Rate Change $0.00 $0.00 $2.35 $4.78 $7.13 Totals $1 ,143.60 $9.90 $119.97 $100.41 $1 ,373.88 % Impact on Total Bill 0.52% Sample Customer Bill — Commercial ( LP Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 20,000 kWh and 5,000 cf $2,181 .81 $9.90 $179.82 $152.03 $2,523.56 Electric ECA -$132.00 -$132.00 Totals $2,049.81 $9.90 $179.82 $152.03 $2,391 .56 Increase Due to Rate Change $0.00 $0.00 $3.60 $7.60 $11 .20 Totals $2,049.81 $9.90 $183.42 $159.63 $2,402.76 % Impact on Total Bill 0.47% 46 Sample Customer Bill — Commercial ( LP Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 60,000 kWh and 15,000 cf $6,221 .55 $14.85 $515.15 $434.03 $7,185.58 Electric ECA -$396.00 -$396.00 Totals $5,825.55 $14.85 $515.15 $434.03 $6,789.58 Increase Due to Rate Change $0.00 $0.00 $10.30 $21 .70 $32.00 Totals $5,825.55 $14.85 $525.45 $455.73 $6,821 .58 % Impact on Total Bill 0.47% 47 Sample Customer Bill — Commercial ( LP Electric Storm Water Electric / Water Use Summer Water Summer Sewer Total 1007000 kWh and 20,000 cf $10,284.95 $44.55 $719.30 $575.03 $11 ,623.83 Electric ECA -$660.00 -$660.00 Totals $9,624.95 $44.55 $719.30 $575.03 $10,963.83 Increase Due to Rate Change $0.00 $0.00 $14.39 $28.75 $43.14 Totals $9,624.95 $44.55 $733.69 $603.78 $11 ,006.97 % Impact on Total Bill 0.39% 48