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HomeMy WebLinkAbout12/04/2018 06N Base Rate Update for Storm Drainage and Surface Water Management Utility Charges; YMC Amendment 7.80.110BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 1 Item No. 6.N. For Meeting of: December 4, 2018 ITEM TITLE: Ordinance amending Chapter 7.80 of the Yakima Municipal Code regarding Storm Drainage and Surface Water rates and charges SUBMITTED BY: Scott Schafer, Director of Public Works Mike Price, Wastewater/Stormwater Manager, 249-6815 SUMMARY EXPLANATION: To keep up with the cost of inflation, to maintain appropriate reserve fund levels, as well as to properly plan for significant projects such as the Stormwater System Improvements for all three phases of the N. 1st Street Revitalization Project and the ongoing Urban Stream Flood Mitigation project for both Cowiche and Wide Hollow Creeks, Stormwater rates must periodically be adjusted to cover the cost of service. The City contracted with FCS Group to conduct a rate study of the Stormwater Division. This effort corresponded with the City's 2014 Stormwater Collection System Master Plan. FCS Group recommended a rate increase of 2.5% per year for four years (2019-2022). Attached for review is the revised Yakima Municipal Code Chapter 7.80 based on the recommendations from FCS Group and as directed by the City Council at the October 18, 2018 Budget Session. This rate increase provides the Stormwater Division with proper funding levels for the next four years. Future fee increases will be presented to Council in an annual fee schedule rather than individually throughout the year on a case-by-case basis. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Approve Ordinance BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date 0 2019-2022 Storrnwater Rate Ordinance redline 10/31/2018 0 2019-2022 Stormwater Rate Ordinance clean 10;31;2018 Type Ordinance Odinance 2 AN ORDINANCE ORDINANCE NO. 2018- 3 relating to utility charges, amending Chapter 7.80.110 YMC to update the base rate fee for the Storm Drainage and Surface Water Management Utility. WHEREAS, the City of Yakima (City) is authorized by Title 35 RCW to acquire, construct, own operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, it is necessary to revise the rate fees for storm drainage and surface water management services provided by the City of Yakima; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the residents and the City to revise the rates and amend the Yakima Municipal Code to reflect rate revisions effective January 1, 2019; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.80.110 of Chapter 7.80 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.80.110 Base rate. The base rate shall be calculated to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility. The city council adopts the annual base rate as shown below: seventy dollars and eight cents ($70.08) effective January 8, 2017; and seventy-one dollars and seventy-six cents ($71.76) effective January 1, 2018. Annual Base Rate effective January 11, 2019 Annual Base Rate effective January 1, 2020 Annual Base Rate effective January 1, 2021 Annual Base Rate effective January 1, 2022 $73.56 $75.36 $77.28 $79.20 In years thereafter, the ongoing revenue requirements for the stormwater utility shall be reviewed and the annual base rates shall be adjusted or maintained as needed. The frequency of adjustments to base rates thereafter shall be as required to ensure fair and full funding of the program. Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional, unlawful or invalid by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 3. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. 2018. 4 PASSED BY THE CITY COUNCIL, signed and approved this 4th day of December, ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: AN ORDINANCE 5 ORDINANCE NO. 2018 - relating to utility charges, amending Chapter 7.80.110 YMC to update the base rate fee for the Storm Drainage and Surface Water Management Utility. WHEREAS, the City of Yakima (City) is authorized by Title 35 RCW to acquire, construct, own operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, it is necessary to revise the rate fees for storm drainage and surface water management services provided by the City of Yakima; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the residents and the City to revise the rates and amend the Yakima Municipal Code to reflect rate revisions effective January 1, 2019; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.80.110 of Chapter 7.80 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.80.110 Base rate. The base rate shall be calculated to provide adequate revenues to cover all costs allowable under applicable law that are incurred by the utility. The city council adopts the annual base rate as shown below: Annual Base Rate effective January 11, 2019 Annual Base Rate effective January 1, 2020 Annual Base Rate effective January 1, 2021 Annual Base Rate effective January 1, 2022 $73.56 $75.36 $77.28 $79.20 In years thereafter, the ongoing revenue requirements for the stormwater utility shall be reviewed and the annual base rates shall be adjusted or maintained as needed. The frequency of adjustments to base rates thereafter shall be as required to ensure fair and full funding of the program. Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional, unlawful or invalid by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 3. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. 2018. 6 PASSED BY THE CITY COUNCIL, signed and approved this 411' day of December, ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: