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HomeMy WebLinkAbout2003-029 General 308 Irrigation System Termination ORDINANCE NO 2003- 29 AN ORDINANCE relating to public services and utilities, terminating irrigation system service to the General 308 area, establishing new irrigation system customer classifications, amending charges for use of the irrigation system, and amending provisions regarding termination of service from the irrigation system under Chapter 7 24 of the City of Yakima Municipal Code, amending provisions for adjustment of wastewater charges to reflect use of domestic system water for irrigation purposes under Chapter 7 60 of the City of Yakima Municipal Code, imposing a surcharge for use of the domestic water system under Chapter 7 68 of the City of Yakima Municipal Code, amending Sections 7 24 010, 7 24 100, 7 24 110, 7 24 150, 7 24 160, 7 60 070, and 7 68 250 of the City of Yakima Municipal Code, establishing a new section 7 24 045 of the City of Yakima Municipal Code, and establishing an effective date WHEREAS, the City of Yakima (City) owns and operates both irrigation and domestic utility systems for purposes of providing a supply of water to the public, WHEREAS, a portion of the City irrigation water utility system known as the General 308 System, that is, the portion of the irrigation system located within the General 308 area designated on the map attached as Exhibit B to City Ordinance 97 -63, comprises an entire service area subdistrict or group of subdistricts, WHEREAS, certain betterments and improvements to either the General 308 System or to the City domestic water system have been proposed in order to improve the provision of water for irrigation purposes to customers within the area presently served by the General 308 System, WHEREAS, the City provided notice of conducted public hearings on February 4, 2003 and February 18, 2003 to receive public testimony regarding the proposed improvements to the domestic water system and termination of irrigation system service to the area served by the General 308 System, WHEREAS, pursuant to Section 7 24 150 of the City of Yakima Municipal Code, the manager of the water /irrigation division made a recommendation to the council regarding termination of irrigation utility service to the General 308 System area, and conversion of the irrigation demand in that area to the domestic water system, WHEREAS, in Tight of the resolution of the City's water right claims in the Acquavella litigation, the City's domestic water system has water rights available to meet the irrigation demands of customers presently served by the General 308 System, WHEREAS, the domestic water system, including planned improvements, will have adequate capacity to meet the irrigation demands of customers presently served by the General 308 System at such time as those demands are converted to the domestic system, WHEREAS, user rate, capital cost, financial and tax considerations, taken together, favor use of the domestic water system to meet the irrigation demands of customers currently Page 1 of 10 served by the General 308 System and conversion will result in an overall improvement to both the remaining irrigation system and the domestic water system, WHEREAS, the City Council hereby finds and determines that the interests of the all citizens of the City of Yakima would best be served by termination of irrigation utility service to the General 308 System area, and conversion of the irrigation demand in that area to the domestic water system, WHEREAS, the City Council further finds and determines it is advisable that the City make additions and betterments to the domestic water utility system as set forth in the plan described in the April 11, 2003 transmittal memorandum and attachments thereto from the Water /Irrigation Division Manager to the City Council, which plan contains estimated costs, in order to meet the irrigation water needs of customers located within the General 308 System area, thereto or extensions thereof, WHEREAS, customers within the area served by the General 308 System and customers served by other portions of the irrigation system are not similarly situated because irrigation system service will be terminated only to those customers in the area served by the General 308 System, while the City will continue to provide for capital improvements to other portions of the irrigation system, WHEREAS, a temporary surcharge on domestic water use is a fair and equitable means to raise a portion of the revenues needed for capital improvements to the domestic water system, and WHEREAS, the City Council finds and determines that the rates and charges for utility service set forth in this ordinance are fair, just and reasonable, NOW THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA. Section 1 Water for irrigation purposes shall be supplied to customers within the area presently served by the General 308 System through the domestic water utility system Irrigation system service shall be terminated to the General 308 System The Manager of the Water /Irrigation Division shall recommend, and the City Manager shall adopt and publish, a schedule for the termination of irrigation system service to various portions of the General 308 System In any event, such termination of irrigation system service and conversion of irrigation demand to domestic water service shall commence no earlier than January 1, 2004 and be completed no later than December 31, 2012 Section 2 Section 7 24 010 of the City of Yakima Municipal Code is hereby amended to read as follows 7.24 010 Definitions. Page 2 of 10 Unless the context specifically indicates otherwise, the meaning of terms in this chapter shall be as follows "City" means the city of Yakima "City manager" means the city manager of the city of Yakima or his or her designee "Customer service division" means the division of customer service within the department of finance and budget. "Customer service manager" means the manager of the customer service division. "Distribution main system" means a series of distribution mains extending from transmission mains "Distribution mains" mean those irrigation system pipes used to convey irrigation system water from transmission mains to service lines "Division" means the water /irrigation division of the city of Yakima "Division manager" means the manager of the division, or his or her authorized agent. "General 308 System" means the portion of the irrigation system located within the General 308 area designated on the map attached as Exhibit B to City Ordinance 97 -63 "Irrigation improvement fund" means the irrigation improvement fund described in YMC Chapter 3 73 "Irrigation local improvement districts" or "ILIDs" means those districts, listed on Exhibit A, attached to Ordinance 97 -63 - - - - - - _ _ _ _ _ _ _ - and incorporated herein by reference, created and operated pursuant to RCW 35 92.260_ "Irrigation operating fund" means the irrigation operating fund described in YMC Chapter 3 112 "Irrigation system," or "system" in a context so indicating, means the waterworks and all other city -owned property used for the purposes described in YMC Section 7 24 030 "Irrigation system water" means water conveyed through irrigation system waterworks and used for the purpose of irrigation "Person" means any individual, partnership, copartnership, firm, company, corporation, association, joint stock company, trust, estate, governmental entity, or any other legal entity, or their legal representatives, agents, or assigns This definition includes all federal, state, or local governmental entities "Service area" means that area served by the irrigation system, and consisting of the various service area subdistricts. "Service area subdistricts" or "subdistricts" means those areas designated on the map attached - _ _ _ _ _ _ _ - _ _ _ _ - as Exhibit B to Ordinance 97 -63, as such map may be amended from time to time, which map is incorporated herein by reference The area of each subdistrict shall correspond to a unique irrigation local improvement district, or existing subdivision thereof, created and operated by the city pursuant to RCW 35 92.260, or to such distinct area as the city may add to the irrigation system pursuant to YMC Section 7 24 140 Page 3 of 10 "Service lines" means the pipes that extend from the distribution mains to the individual properties to be served by the irrigation system. "System" shall have the same meaning as "irrigation system " "Transmission mains" mean those irrigation system pipes twenty -four inches or greater in diameter, and related conduits, used to transmit irrigation system water to a distribution main system. "Utility Billing division" means the division of customer service within the department of finance and budget. " Utility Billing manager" means the manager of the customer service division "Waterworks" means that system of conduits and conveyances belonging to the city and used for the purpose of diverting, storing, conveying, moving, and otherwise controlling the flow of water in the irrigation system. "Waterworks" includes, but is not limited to, dams, ditches, laterals, canals, pipes, and headgates, and all appurtenances thereto Section 3 Section 7 24 045 is hereby added as a new section to the Yakima Municipal Code to read as follows 7.24 045 Customer Classifications The irrigation system shall have two classes of customers for purposes of rates and charges They are as follows A. The "General 308 System Customers" are those customers served by the General 308 system B The "Non -308 System Customers" are those customers of the city irrigation system served by portions of the system other than the General 308 System Section 4 Section 7 24 100 of the City of Yakima Municipal Code is hereby amended to read as follows 7.24 100 Annual rates and charges A. Annual charges for each customer class shall be calculated as a function of the total square footage ( "TSF ") of each lot, tract, or parcel served This annual charge is based on comprised of the following elementssempes Operation and Maintenance ( "O &M ") charge = $0 0137 x TSF, and Capital Improvement Program ( "CIP ") charge = $0.0050 $0 0110 x TSF B Annual charges for General 308 System Customers shall be the product of the Operation and Maintenance charge times the total square footage of the customer's lot, tract, or parcel served (O &M * TSF). Page 4 of 10 C. Annual charges for Non -308 System Customers shall be the sum of the Operation and Maintenance and Capital Improvement Program charges, multiplied by the total square footage of the customer's lot, tract, or parcel served ([O &M + CIP1 * TSF) D All moneys billed and collected pursuant to this section shall be deposited in the irrigation operating fund pursuant to YMC Section 3 112.020 Section 5 Section 7 24 110 of the City of Yakima Municipal Code is hereby amended to read as follows 7.24 110 Effective date for rates. The rates set forth in YMC Section 7 24 100 shall become effective on July 1, 2003 and shall remain in effect until amended by action of the city council Section 6 Section 7 24 150 of the City of Yakima Municipal Code is hereby amended to read as follows 7.24 150 City termination of subdistrict irrigation system service -- Conversion to domestic water system. A. After all avenues for maintaining or reestablishing If the city council determines that it is not feasible to maintain or reestablish irrigation infrastructure serving a service area subdistrict, have been duly pursued, the city council may consider acting to- permanently terminate irrigation system service to a service area that subdistrict and convert that subdistrict's irrigation demand to the domestic water system. B The division-manager-city council shall provide notice of and conduct a public hearing to receive public testimony regarding any proposed termination of irrigation system service to a service area subdistrict or group of subdistricts After conducting -the public hearing has been conducted, the division manager shall submit a report to the city council regarding termination and conversion C The division manager's report shall address all the factors set forth in YMC 7.24.160.B. The city council may, in its discretion, deny termination and conversion based on factors other than those set forth in YMC 7.24.160.B. D The division manager's recommendation report and the city council's decision must be made as to an entire service area subdistrict or group of subdistricts, and shall not be made as to individual customers Section 7 Section 7 24 160 of the City of Yakima Municipal Code is hereby amended to read as follows 7.24 160 Customer termination of irrigation service -- Conversion to domestic water system. Page 5 of 10 A. An irrigation water service customer may request termination of irrigation water service on the grounds that the customer lacks and cannot reasonably obtain access to the irrigation system Such request shall be made to the division manager B The Division Manager shall render to the customer a written response regarding the request. In reviewing the request, the division manager shall consider factors including, but not limited to (i) The existence of reasonably available customer access to the irrigation system, (ii) The capacity of the domestic water system to accommodate the customer's irrigation demand, (iii) The availability of domestic system water rights to meet the customer's irrigation demand, (ivii) Compliance with statutory site design requirements and standards for lot coverage (Yakima urban area zoning ordinance, Section 15 05 020), (iv) Necessary or required design standards, (vi) The effect of such conversion on the adequacy of flow to other irrigation system customers, (vii) The penetration rate within the territory served by the irrigation system, (viii) Implications for the existing rate structure, (ixvUi) Capital costs imposed by the proposed conversion, (ix) Tax and related financial considerations, (xi) Security for potential liabilities, (xii) Consistency with applicable plans adopted under the Growth Management Act; (xii!) The timing of the proposed conversion relative to the irrigation season, construction schedules, or other irrigation system activities, (xivi1) Implications of applicable governmental permits and authority; and (xiv) Costs associated with evaluating the proposed conversion No conversion shall be granted where the customer has reasonably available access to the irrigation system, or where division manager determines either that sufficient capacity or water rights for conversion do not exist within the domestic system, or that _ where conversion will cause a lack of compliance with statutory site design requirements Page 6 of 10 and standards for lot coverage (Yakima urban area zoning ordinance, Section 15 05 020) C If the division manager grants the request, the customer may convert to the domestic water system upon payment of the applicable domestic water system connection and related fees set forth in YMC Chapters 7 50, 7 56 and 7 68 Section 8 Exhibit B to Ordinance 97 -63, which is incorporated by reference in Section 7 24 010 of the City of Yakima Municipal Code is hereby amended to read as set forth in Exhibit A to this Ordinance Section 9 Section 7 60 070 of the City of Yakima Municipal Code is hereby amended to read as follows 7 60 070 Water used for irrigation not to be charged as wastewater It is the intent of this chapter that the portion of water used exclusively for irrigation be not charged correspondingly not form the basis for wastewater charges Upon application, where it can be shown to the satisfaction of the city wastewater superintendent manager that the higher charges for wastewater during the summer months are due to water used for irrigation, the wastewater charge for the summer period may be adjusted to based upon the winter months' water usage charges The city water /irrigation manager shall file such an application on behalf of customers located within the General 308 System when the customer's irrigation demand is converted from the irrigation water system to the domestic water system, and such application shall be granted to the extent of the customer's irrigation demand. Section 10 Section 7 68 250 of the City of Yakima Municipal Code is hereby amended to read as follows 7 68.250 Water services charges A. Commencing July 1, 2001 July 1, 2003, the charge for domestic water supplied shall consist of a ready -to -serve charge and-a charge for water consumed, and a surcharge as follows Ready -to- One -Month Two -Month Serve Period Period Charges Meter size 3/4" and $3 65 $3 65 smaller 1" 4.24 565 1 -1/2" 7 68 12 80 2" 14 17 26 00 3" 34 64 67 00 4" 54 57 107 00 Page 7of10 6" 95 95 190 00 8" 15655 31000 10" 238 93 475 00 12" 351 40 700 00 Following is a tabulation of applicable rates per UOC UOC Rate Per UOC 0 - -220 1 13 13 -20 1.13 21- -250 1 00 251---- 598and above 0 75 Ova -508 05 The surcharge shall be $9 63 per connection for each two -month period, or $4 82 for any one -month period, for all customers of domestic water service from July 1, 2003 through July 1, 2023. B The "one -month period" is defined as nay any period of time from one day up to and including one month and fourteen days, and the "two -month period" is defined as any period of time from one month and fifteen days to two months and fourteen days Minimum ready -to -serve and consumption charges for water supplied outside the city shall be computed by multiplying the applicable rate above by one and one -half Provided, however, that within the -area described on the map found in Section 7.68.035 of this code, the ready -to -serve charge and charge for water consumed shall not be subject to any surcharge set out in this subsection. C Home Kidney Dialysis A residential customer who undergoes kidney dialysis at his or her home, or whose home is also the home of a different person who undergoes home kidney dialysis, shall not be required to pay utility charges for domestic water service or sewer service for the quantity of water that is necessary for the home dialysis In order to be excused from utility charges under this subsection, the residential customer must present annually to the director of finance and budget or their designee written documentation from a recognized kidney dialysis center certifying that the person requires dialysis and the quantity of water needed for that person's dialysis Page 8 of 10 Section 11 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 PASSED BY THE CITY COUNCIL, signed and approved this 20tlolay of May 2003 ATTEST Place, Mayor City Clerk Publication Date 5 -23 -03 Effective Date 6 -22 -03 Page 9 of 10 Ordinance 2003 - Exhibit - A 1 — ---,�.,. 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Page 10 of 10 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No /a For Meeting of 5/20/2003 ITEM TITLE Consideration of an Ordinance related to Public Services and Utilities Providing for the Conversion of the General -308 Irrigation System to Domestic Irrigation Service SUBMITTED BY Dave Brown, Water /Irrigation Engineer Glenn Rice, Assistant City Manager Dick Zais, City Manager CONTACT PERSON /TELEPHONE Dave Brown / 575 -6204 SUMMARY EXPLANATION At the meeting on May 6 the Council voted to "convert the General -308 Irrigation System to domestic water and to rebuild the Non -308 Systems" The attached Ordinance and supporting documentation provides the legislation to implement that vote Resolution Ordinance _X_ Contract Other Specify)_ Mail to Funding Source APPROVED FOR SUBMITTAL � �-, J- City Mana er STAFF RECOMMENDATION Pass the attached Ordinance BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION Ordinance passed. ORDINANCE NO.. 2003 -29 TRANSMI TTAL Water /Irrigation Division 2301 Fruitvale Blvd Friday, May 16, 2003 To The Honorable Mayor and Members of the City Council From Dueane Calvin, Water /Irrigation Manager Dave Brown, Water /Irrigation Engineer Glenn Rice, Assistant City Manager Dick Zais, City Manager Subject. Irrigation and Domestic Service Legislation SUMMARY EXPLANATION OF PROVISIONS OF ORDINANCE The ordinance is designed to implement the policy decision made by the City Council at its meeting of May 6, 2003 The ordinance contains recitals and operative provisions relating to converting the irrigation water demand of customers presently served by the City's General 308 irrigation system to the City's domestic water system It confirms that capital improvements will be made to the domestic system and to non - General 308 portions of the irrigation system It creates irrigation customer classifications It adjusts rates for the irrigation and domestic water systems It modifies the processes to be used in the future (except for the General 308 system) for proposed conversion of an area's or a particular customer's irrigation demand from the irrigation system to the domestic water system Following is a section -by- section description of the provisions of the ordinance Section 1 reflects the Council's policy decision and directs Staff to develop a schedule for conversion of the General 308 system Conversion will occur over time from 2004 through 2012 Section 2 adds and revises certain definitions These definitions apply only to the irrigation system portions of the municipal code They include a new definition for the General 308 system, revisions to reflect a change in terminology from "customer service" to "utility billing ", and a reference to the updated map of the irrigation system, which eliminates the General 308 system Section 3 creates two customer classifications within the irrigation system Until now, there has been only one customer classification, and all customers have paid the same rates, including operations and maintenance (O &M) and capital improvement program (CIP) charges, on a square -foot basis Section 3 classifies the General 308 customers separately from other customers of he City's irrigation utility Section 4 revises rates and charges for irrigation system customers It increases the level of CIP charges, while retaining the current O &M charges It makes General 308 system customers subject only to O &M charges, since there will be no further capital improvements to that Irrigation system Other customers remain subject to both O &M and CIP charges Section 5 sets July 1, 2003 as the effective date for the new irrigation system rates Page 2 Section 6 makes minor revisions to the City process for future consideration of whether or not to convert the irrigation demand of an entire subdistrict to the domestic water system This new process will apply to conversion proposals made on or after the effective date of the ordinance Section 7 revises the process for City consideration of whether to grant a particular customer's request to convert his or her irrigation demand from an irrigation water system to the domestic water system Under the revised process, the customer will have to show that he or she lacks and cannot reasonably obtain access to an irrigation system, in addition to addressing the current criteria for conversion This revision is designed to ensure that customers within an area receiving the benefits of capital improvements will continue to share in the costs of the system Section 8 incorporates by reference the map attached to the ordinance This map reflects the elimination of the General 308 system from the City's irrigation utility system Section 9 revises a portion of the municipal code governing wastewater It is designed to ensure that customers within the General 308 system will not have their wastewater bills increase as a result of the conversion Section 10 imposes a surcharge on domestic water service that results in a rate of $9 63 every two months This represents a base surcharge of $8 45 plus an additional $1 18 to cover the utility tax payable upon that $8 45 Section 10 also clarifies that the information required of dialysis customers must be provided annually Section 11 provides a 30 -day effective date HISTORY OF ACTIONS RELATING TO ORDINANCE How best to meet the irrigation water needs of customers located within the General 308 system has been an issue before the Council for a number of years The current proposed ordinance relates most directly to actions taken from October 2002 to the present. These actions include • At the Council meeting of October 29, 2002, as Council considered the Water /Irrigation Division's strategic business plan, there was discussion regarding work on the irrigation system • At its meeting of November 5, 2002, the Council conducted a public hearing on the 2003 Community Development Block Grant Annual Action Plan There was discussion among Council members and Staff, and comment from nine members of the public, regarding funding needs for the irrigation system and sources of funds This public hearing was continued on November 26, 2002, and additional members of the public commented • At its meeting of January 7, 2003, the Council considered an ordinance amending Page 3 domestic water system Base Irrigation Connection charges There was discussion regarding potential impacts on customers within the General 308 system if that area were to have its irrigation demand converted to the domestic system A January 21, 2003 study session and subsequent public hearing were announced • The Council conducted special study sessions on January 21 and 28, 2003 concerning funding options related to the complete rebuild of the irrigation system, or the conversion of the General -308 system and the rebuild of the Non -308 systems The Council considered detailed information on relative costs and other factors bearing on whether the General 308 system should be rebuilt, or whether instead the irrigation demand from that area should be converted to the domestic system • Public hearings on funding options for the irrigation system were conducted on February 4 and 18, 2003 At these hearings, Staff made a presentation on the history and options, then members of the public asked questions and testified • At its meeting of March 4, 2003, the Council discussed irrigation system alternatives and requested additional information on two new financing options Two members of the public commented on irrigation system issues • At its meeting of April 15, 2003, the Council received and considered the additional information it had requested It received a recommendation from the Water /Irrigation Manager, a transmittal memorandum summarizing information developed to date, a summary of the future of the domestic water supply, a legal memorandum regarding related water right issues, excerpts from the 2003 draft Water System Plan Update, and a memorandum outlining changes to irrigation system ordinances The Council took public comment and Staff responded to questions • At its meeting of May 6, 2003, the Council received and considered further information from the Water /Irrigation Division regarding the availability of funding from various potential sources for the rebuilding and /or conversion of the General 308 system • In 2003, 2004 and part of 2005, the revenue from the new surcharge on the domestic water bill will be used to finance the design of the components necessary for the conversion of the General -308 System Revenue in subsequent years will be used for debt service on anticipated Public Works Trust Fund loans for construction