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HomeMy WebLinkAbout2004-081 Domestic Water Rates & Fees ORDINANCE NO. 2004- 8 1 AN ORDINANCE establishing rates, charges, terms and conditions for domestic water system service; amending portions of chapter 7.68 of the Yakima Municipal Code; deleting section 7.68.255 and chapter 7.75 of the Yakima Municipal Code; and providing for an effective date. WHEREAS, RCW 35.92.010 authorizes cities to own and operate water utilities, and to regulate and control the use, distribution, and price for water utility service; and WHEREAS, Article IX, Section 1 of the City Charter of the City of Yakima authorizes the City Council to provide by ordinance rules and regulations for the control, management and operation of all public utilities owned and operated by the City; and WHEREAS, the City Council has established rates and charges for domestic water service through the enactment of Yakima Municipal Code (YMC) chapters 7.68 and 7.75; and WHEREAS, the consulting firm of Financial Consulting Solutions Group, Inc. has completed a "2004 Domestic Water Utility Rate Study Report" for the City of Yakima; and WHEREAS, the City Council finds and determines that the rates, charges, terms and conditions for domestic water utility service set forth in this ordinance are fair, just and reasonable; and WHEREAS, the City Council finds and determines that adoption of this ordinance is in the public interest; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.68.250 YMC is amended to read as follows: 7.68.250 Water services charges. A. Commencing -From February 1, 2005 through December 31, 20054640- 7 -200-1-, the charge for domestic water supplied within the City of Yakima shall consist of a ready -to -serve charge and a charge for water consumed_ Ready to serve charges are as follows: Ready -to -Serve One- Month Two -Month Charges: Charges -Meter size Period Charge per Two - Month Period 3/4" and smaller $3.65 $6.00$3.65_ 1" 4:24 10.676 1-1/2" 7,66 18.2312.80 Page 1 of 6 pages 2" 14.17 27.3026.08 3" 4134.64 4148.4667:00 4" 54.57 78.691-07.00_ 6" 85-95 154.271-99M 8" 1-56.55 305.4231410 10" 238.93 456.5747 00 12" 351.40 668.18700.00 - - •. - - - - - - •- - - - - •- - - =Charges for water consumed are as follows, expressed in rates per UOC, where "UOC" means Unit of Consumption and equals 100 cubic feet of water: UOC Rate Per UOC 0-1-2 1.13 13-20 1.13 21-0--250 1.141 -00 254-500 0,75 Over 500250 0450.85 B. For calendar years 2006 and beyond, the charge for domestic water supplied within the City of Yakima shall consist of a ready -to -serve charge and a charge for water consumed, as follows: Readv -to -Serve Charges per Two -Month Period Meter size 2006 2007 2008 2009 Jan 1 Jan 1 Jan 1 Jan 1 and beyond 3/4" and smaller 8.25 9.00 9.35 9.70 1" 12.04 12.60 13.08 13.49 1-1/2" 20.57 21.58 22.35 22.96 2" 30.81 32.35 33.48 34.33 3" ( 54.69 57.49 59.46 60.86 4" 88.81 93.40 96.56 98.75 6" 174.10 183.17 189.32 193.48 8" 344.70 362.71 374.84 j 382.94 10" 515.29 542.25 560.36 572.41 12" 754.12 4 793.61 4 820.08 837.66 Page 2 of 6 pages Charge for Water Consumed per UOC UOC 2006 2007 2008 2009 Jan 1 Jan 1 Jan 1 Jan 1 _ and beyond 0 -250 120 121 I 1.23 125 Over 250 1.00 1.07 i15 1 125 C. A one -month period is defined as water service from one day up to thirty one days. A two - month period is defined as water service for thirty two days to two months. The"one -month D. The minimum charge for domestic water for a one month period for all meter sizes except 3 /4 inch shall be one half the two -month Ready -to -Serve charge above plus the charge for three (3) UOC at the 0 —250 UOC rate above. The 3 /4 inch meter size minimum charge for domestic water for a one month • eriod shall be the 3 /4 inch two month Read -to -Serve char e above plus the charge for three (3) UOC at the 0 —250 UOC rate above. The minimum charge for domestic water for is two month period for all meter sizes shall be the two -month Ready -to -Serve charge above plus the charge for six (6) UOC at the 0 —250 UOC rate above. E. All •• - •• - • = - • . - - • - " •• - - • harges for water supplied outside the city shall be computed by multiplying the applicable rates set forth in paragraphs A through D of • this section above -by one and one -half. - • e _ - , • - _ , • - • ' •_ - _ - _ - - ' - ' FO. 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 to the director of finance and budget or their designee written documentation annually from a recognized kidney dialysis center certifying that the person requires dialysis and the quantity of water needed for that person's dialysis. Section 2. Section 7.68.251 YMC is amended to read as follows: 7.68.251 Bulk rate. A. Commencing February 1, 2005JuIy BAT, the charge for water supplied through fire hydrants, when the water is used by either the city or a private person for any use authorized Page 3 of 6 pages by the water /irrigation division„ shall be the same as the highest UOC charge set forth in YMC 7.68.25' - - - - _ •_ -- - _ •_ •- - =- --e = =. charge shall be made for water supplied through fire hydrants when the water is used for fire suppression or for maintenance and operation purposes by the city. B. All water served through a fire hydrant shall comply with YMC 7.68.300. Daily meter assembly use charge for temporary water service shall be four dollars ($4.00) for each day or portion of. The minimum meter assembly use charge shall be four dollars ($4.00). Section 3. Section 7.68.255 YMC, pertaining to certain minimum service charges, is deleted in its entirety. Section 4. Section 7.68.282 YMC is amended to read as follows: 7.68.282 Fire service charges. The bi monthly charge for each active fire service shall be as follows: A. Charges within the City of Yakima Gcommencing dull 004February 1, 2005: Size of Feb. 1 — Dec. Outside 2007, 2008 2009 Service 31, 2005 City2006 Jan 11 Jan 1 Jan 1 Inside -City , Jan 1 and beyond 1 1/2" 65700 j 5750 2" 5.255,00 5.507 -50 5.75 6.00 6.00 3" 11 7.357.00 7.704.0:50 8.05 8.40 8.75 4" 11.5544:00 12.101 -6.50 12.6Ei 13.20 13.75 6" including 27.3026.00 28.6039.00 29.9Q 31.20 32.50 hydrant only _ 8" 36.7535.00 j 38.505 2,50 40.2Ei 42.00 43.75 10" 63.0060 700 66.0090.00 69.0Q 72.00 75.00 12" 157.504-50,001 165.00225:90 172.50 180.00 187.50 B. Charges for fire services outside the city limits shall be computed by multiplying the applicable rate above by one and one -half. CB. The inside diameter of the pipe leading to a fire hydrant shall determine the service charge. Any fire hydrant installed and maintained by the city outside of city limits will be billed as a fire service, which charge shall be terminated at such time as the responsible consumer's property is annexed to the city. Page 4 of 6 pages Section 5. Section 7.68.300 YMC is amended to read as follows: 7.68.300 Temporary domestic water service. A. Conditions of Use. Temporary domestic water service through an existing fire hydrant or by means of other existing water lines will be furnished to a customer on the following conditions: 1. Application for such service shall be made in person to the water/irrigation division. 2. Water furnished through the temporary service shall be measured by a meter assembly, to be furnished by the city a ucE • _ .... .. • _ _ - - _ - - - _ - _ - • - be- one - dollar. 3. When the meter assembly is installed by city employees, the customer shall pay to the city the actual labor cost incurred by the city, based in the then applicable payroll charges, including overhead, for actual hours of labor involved, all as determined by the water /irrigation division of the city, with a minimum one -hour charge. 4. The customer shall pay the city the actual cost for equipment used in making such installation, based on the then current city rental rates for the actual hours of equipment usage, all a s determined by the water /irrigation division of the city, with a minimum one -hour charge. 5. The customer shall pay for water furnished through a temporary service pursuant to YMC Section 7.68.251. 6. The customer shall return the water meter assembly in the same state of repair as when furnished to the customer by the city, or shall be responsible to the city for the actual cost of any meter assembly repair, or the actual total cost of the meter assembly in the event of its destruction or Toss. 7. The customer shall give notice to the Yakima fire department of the location of hydrants to be used for temporary service, and the duration of such use. B. Billing. Bimonthly billings will be rendered by the city to temporary water use customers, for the applicable charges as specified in subsection A of this section and YMC Section 7.68.251, with payment due within the same time as other billings for city utility services; provided, if the temporary service is furnished for a period of time less than the two -month billing period, payment shall be due at the time such temporary service is discontinued and the meter assembly returned to the city. C. Customer to Sign Agreement. Prior to the installation of the meter assembly by which a temporary water service will be furnished, the applicant for such service shall sign an agreement to comply with the; provisions, terms and conditions of this section. Page 5 of 6 pages D. The provisions of this section do not require or authorize temporary domestic water service by or through any other than the water lines or fire hydrants existing at the time application for such service is made; and neither this section nor any agreement signed pursuant to it for temporary w service shall be construed to require the installation or extension by the city of any water line or facility to furnish temporary water service, either within or outside the corporate boundary of the city. Section 6. Chapter 7.75 YMC, pertaining to connections to the domestic water system in a certain geographic area, is hereby deleted in its entirety and is of no further force or effect. Section 7. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance. Section 8. 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 at a regular meeting and signed and approved this 14th day of December, 2004. 4 Paul George, M.. or ATTEST: City Clerk Publication Date: 12/17/04 (ordinance certification) Effective Date: 1 -i6 -2005 Page 6 of 6 pages BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. " j b For Meeting Of 12/14/2004 ITEM TITLE: 2005 Water Rate Adjustment SUBMITTED BY: Dave Brown, Water /Irrigation Manager i Rita Anson, Finance Director CONTACT PERSON/TELEPHONE: Dave Brown / 575 -6204 SUMMARY EXPLANATION: The 2004 Domestic Water Utility Rate Study was completed in August 2004. Council held a study session on September 14, 2004 where they discussed these issues and accepted comments from the public. Council requested that a public hearing be held to accept additional public comments about the Domestic Water Utility Rate Study and proposed new rates before legislation is prepared that would implement any adjustment in rates. On November 9, 2004 Council held a Public Hearing to accept comments from the public about the Domestic Water Utility Rate Study and proposed new rates. Council also discussed the Water Rate Adjustment Policy Issue at the November 30, 2004 budget review session. The proposed adjustments are: 2005 2006 2007 2008 2009 12% 12% 3.5% 3.5% 3.5% This proposal is estimated to increase revenues by approximately $530,000 in 2005, by $699,600 in 2006, by $229,000 in 2007, by $236,000 in 2008 and by $245,000 in 2009. (continued on next page) Resolution _ Ordinance X Contract Other (Specify) Funding Source All Water Customers _ APPROVED FOR SUBMITTAL: Cat Mana • er STAFF RECOMMENDATION: Staff respectfully requests City Council to enact the accompanying ordinance. BOARD /COMMISSION RECOMMENDATION: See attached from City's Capital Facilities Committee COUNCIL ACTION • The principal consideration in establishing the water rates was to establish rates for customers that generate sufficient revenues for the Utility and are reasonably commensurate with the cost of providing water service. Other considerations in designing rates included ease of implementation, impact on customer bills, and incentives for water conservation. This rate also focused on developing a phase -in strategy to more closely align the fixed and variables components of the rate structure with cost of service, and to continue the City's policy to transition from a declining block rate structure to single uniform volume rate. Rate Adiustment Summary: Readiness -To- Service Charge - $!Bi- Monthly Billing Period [a] Meter Size Existing I Proposed 2004 2005 1 2006 1 2007 1 2008 1 2009 3/4" $3.65 $6.00 $ 8.25 $ 9.00 $ 9.35 $ 9.70 1" $5.65 $1 0.67 $ 12.04 $ 12.60 $ 13.08 $ 13.49 1 -1/2" $12.80 $18.23 $ 20.57 $ 21.58 $ 22.35 $ 22.96 2" $26.00 $27.30 $ 30.81 $ 32.35 $ 33.48 $ 34.33 3" $67.00 $48.46 $ 54.69 $ 57.49 $ 59.46 $ 60.86 4" $107.00 $78.69 $ 88.81 $ 93.40 $ 96.56 $ 98.75 6" $190.00 $154.27 $ 174.10 $ 183.17 $ 189.32 $ 193.48 8" $310.00 $305.42 $ 344.70 $ 362.71 $ 374.84 $ 382.94 10" $475.00 $456.57 $ 515.29 $ 542.25 $ 560.36 $ 572.41 12" $700.00 $668.18 $ 754.12 $ 793.61 $ 820.08 $ 837.66 Volume Charge - $ /ccf [a] Rate Block Existing I Proposed (per ccf) 2004 2005 1 2006 1 2007 1 2008 1 2009 0 - 20 $1.13 $1.14 $ 1.20 $ 1.21 $ 1.23 $ 1.25 21 - 250 $1.00 $1.14 $ 1.20 $ 1.21 $ 1.23 $ 1.25 Over 250 $0.75 $0.85 $ 1.00 $ 1.07 $ 1.15 $ 1.25 Private Fire Services - $ /Bi- Monthly Period [a] Line Size Existing 1 1 Proposed 2004 1 2005 1 2006 1 2007 1 2008 1 2009 2 $5.00 $5.25 $5.50 $5.75 $6.00 $6.00 3 $7.00 $7.35 $7.70 $8.05 $8.40 $8.75 4 $11.00 $11.55 $12.10 $12.65 $13.20 $13.75 6 $26.00 $27.30 $28.60 $29.90 $31.20 $32.50 8 $35.00 $36.75 $38.50 $40.25 $42.00 $43.75 10 $60.00 $63.00 $66.00 $69.00 $72.00 $75.00 12 $150.00 $157.50 $165.00 $172.50 $180.00 $187.50 Bulk Water Rate - $!ccf Existing I Proposed 2004 2005 1 2006 1 2007 1 2008 1 2009 1 $1.00 1 $1.14 1 $ 1.20 1 $ 1.21 1 $ 1.23 1 $ 1.25 Daily water meter rental will be $4.00 per day (existing rate is $1.00 per daY)_ [a) Outside City rates are 1.50 times inside City rates Capital Facilities Cornmittee Domestic Water Rate Adjustment Recommendation September 14, 2004 The City of Yakima Capital Facilities Committee has reviewed the Water Rate Study and associated capital improvements for the domestic water system on August 13, 2004 and on September 10, 2004. We agree that the water infrastructure must be maintained to provide adequate domestic water for public health, fire flows, economic development and future demands. We have not reviewed the actual rate design in detail, as this will be a Council decision based on staff and consultant analysis. However, we agree that rates need to be adjusted to provide for adequate service, maintenance and operations and to fund all anticipated and necessary capital improvements. We would also note that having a smaller yearly adjustment to the rates to account for inflation and provide adequate reserves and capital funds is a positive step that will avoid large "catch -up" future rate increases by keeping pace with costs. •