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HomeMy WebLinkAboutA041 - First reading of Ordinance regarding Establishment of Nonresident Sanitary Sewer Rate and certain Water & Pollution Control feesITEM #:45 DATE:09-23-25 DEPT:PW SUBJECT:ESTABLISHMENT OF NONRESIDENT SANITARY SEWER RATE COUNCIL ACTION FORM BACKGROUND: On July 8, 2025, the City Council received a staff memo regarding a request from Maple Grove Mobile Home Park at 6100 W. Lincoln Way to connect to the City’s sanitary sewer system. At its August 12, 2025, meeting, Council selected an option that would allow for properties outside of the corporate limits to connect to the City’s sanitary sewer system through individual agreements, without requiring annexation. To support this option, a new "Nonresident Customer" sewer rate must be added to the Municipal Code to ensure an equitable fee structure for properties located outside the corporate limits. This new rate will mirror the City’s existing Nonresident Customer water rate framework. The proposed amendments to Chapter 28 of the Ames Municipal Code will: Define “Nonresident Customer” within Section 28.302 Establish a separate minimum monthly charge and usage rate for Nonresident sewer users under Section 28.304 Clarify that these customers are subject to the same service standards as resident users, unless otherwise specified by agreement The draft ordinance sets the monthly minimum charge for Nonresident Customers at $15.79, and a usage rate of $4.04 per 100 cubic feet as shown on the attached document. In comparison, the existing resident monthly minimum charge is $13.73, and the existing resident usage rate is $3.51 per 100 cubic feet. ALTERNATIVES: 1. Approve first reading of an ordinance amending Chapter 28 of the Municipal Code to establish a Nonresident Sanitary Sewer Rate. 2. Do not approve the proposed changes and continue requiring annexation for all sewer connections. 3. Refer the item back to staff for further development or modification. 1 CITY MANAGER'S RECOMMENDED ACTION: Providing sanitary sewer service to properties with failing septic systems outside the City limits helps reduce environmental risks, particularly in sensitive areas like the College Creek watershed. Creating a dedicated Non-resident Customer rate will allow these properties to connect under a clearly defined and equitable billing structure, while preserving the City’s policy discretion through individual agreements. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative 1, as described above. ATTACHMENT(S): Ordinance (Sewer Rates Resident-Nonresident).pdf 2 ORDINANCE NO. ___________ AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING SECTIONS 28.302, 28.304(3) and APPENDIX Q THEREOF, FOR THE PURPOSE OF ESTABLISHING SEWER RATES FOR RESIDENT AND NON-RESIDENT CUSTOMERS, 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 Sections 28.302, 28.304(3) and Appendix Q as follows: “Sec. 28.302. DEFINITIONS. * * * (23) ‘User’ shall mean any customer who discharges, either directly or indirectly, into the Ames sanitary sewer collection system. The term shall include both Resident Customers and Nonresident Customers. * * * Sec. 28.304. SEWER RATES ESTABLISHED. * * * (3) For each monthly billing on or after July 1, 2025, each customer shall be charged a minimum monthly charge. The minimum charge for each location shall be thirteen dollars and seventy-three cents ($13.73). 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 five dollars and twenty-seven cents ($5.27). In addition, for all water metered beginning with the first cubic foot each month, each user shall pay three dollars and fifty-one cents ($3.51) per 100 cubic feet. (3) The rates and charges for sewer service provided by the sewer utility of the City, to be billed on or after July 1, 2025, for each monthly billing period are as follows: (a) Resident Customers. The Resident Rate shall apply to all customer accounts within the Ames corporate limits. (i) a monthly minimum charge of thirteen dollars and seventy-three cents ($13.73). 3 (ii) a charge for sewer usage during the billing period of three dollars and fifty-one cents ($3.51) per 100 cubic feet. (b) Nonresident Customers. The Nonresident Rate shall apply to all customers accounts outside the Ames corporate limits, except for those covered by a separate wholesale contract or agreement for service. (i) a monthly minimum charge of fifteen dollars and seventy-nine cents ($15.79). (ii) a charge for sewer usage during the billing period of four dollars and four cents ($4.04) per 100 cubic feet. (c) 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 five dollars and twenty-seven cents ($5.27). * * * APPENDIX Q WATER AND POLLUTION CONTROL FEES & CHARGES * * * WPC Division Waste Hauler Fee - Ames locations* Domestic/Residential Waste ............................................ $10.25/load + $4.95/100 gallons Restaurant Grease Traps ................................................. $67.94/load + $3.98/100 gallons Non-Domestic Waste .......................................... $10.25/load + unit rate to be determined * Non-Ames location Nonresident surcharge .................................................................................... 15% Unauthorized Sewer Use ........................................................................................... $263.00/occurrence Unmetered Sewer Use .................................................................................... $3.34/day + $23.03/month High-Strength Surcharge Rates* Parameter Surcharge Rate Oxygen Demand CBODR5 $0.54/lb. COD $0.20/lb. Nitrogen NHR3N $1.94/lb. TKN $1.25/lb. Solids TSS $0.80/lb. Fats, Oils, and Grease Oil and Grease $1.08/lb. * Nonresident surcharge .................................................................................................................... 25% *Monthly High-Strength Surcharge Fees of less than $5/month will be waived * * * ” 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. 4 Passed this day of , 2025. ________________________________ ____________________________________ John A. Haila, Mayor First Reading: Second Reading: Third Reading: Passed on: I, Renee Hall, City Clerk of the City of Ames, Iowa, hereby certify that the above and foregoing is a true copy of Ordinance No. ______________, passed by the City Council of said City at the meeting held on ______________________and signed by the Mayor on ___________________________, and published in the Ames Tribune on ___________________________. ____________________________________ Renee Hall, City Clerk 5