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Home My WebLink AboutR-1997-024 Cost of Service & Rate Study / WastewaterRESOLUTION NO. Jt97- 2 4 A RESOLUTION Adopting the 1996 Wastewater Cost of Service and Rate Study for the City of Yakima, Washington. WHEREAS, the City of Yakima is required to biannually review wastewater rates and charges to comply with federally mandated Environmental Protection Agency and State financing provisions, to satisfy bond covenants, and in accord with Yakima Municipal Code, hereafter known as the "Study"; and WHEREAS, a financing study is one element necessary to provide for the wastewater needs of the area for the health, safety and well being of the people, as well as complying with State and Federal environmental laws and regulations; and WHEREAS, the City Council has complied with statutory requirements for Public Hearing on the findings of the Study; and WHEREAS, the City Council, through deliberation, has made changes in and additions to such Study, all of which are incorporated into such Study and Appendices as are adopted by this Resolution, now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The document entitled 1996 Wastewater Cost of Service and Rate Study, dated February 1997, a true copy of which Study and Appendices are on file in the City Clerk's Office and are incorporated by reference herein, are hereby adopted by the City of Yakima. ADOPTED BY THE CITY COUNCIL this 15th day of E 1997. or a LY� Buchannan Y ATTEST: COS Resolution -96 2/12/97 cw /tit L'`��. J c-► CITY CLERK ITEM TITLE: SUBMI'! thD BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7/4 For Meeting Of 2/18/97 Request for Council Action on the 1996 Wastewater Cost of Service and Rate Study Legislation(And Policy Issues deferred from 1997 Budget Deliberations) Chris Waarvick, Wastewater Superintendent Doug Mayo, Project Engineer Glenn Rice, Assistant City Manager John Hanson, Finance Director CONTACT PERSON/TET F,PHONE: Chris Waarvick/575-6078 SUMMARY EXPLANATION: JNTRODUCTION Action on the recommendations of the 1996 Wastewater Cost of Service and Rate Study was deferred from December, 1996 budget discussions until such time in early 1997 a Study Session could be held. Special interest from Council was shown in the Strongwaste recommendations found in the Study. Also deferred were two (...continued...) 1 esolutionX,,OrdinanceContract Other (Specify) Attachments and referenced materials Funding Source All wastewater customer classes APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff respectfully requests City Council to: 1) adopt, by resolution, the 1996 Wastewater Cost of Service and Rate Study; 2) enact, by ordinance, 1996 Wastewater Cost of Service Recommendations as amended by deliberation; and 3) approve 1997 Budget Policy Issues A (East Mead Sewer Issue) and B (Stormwater System Minor Repair). 1997 Budget Policy Issue C (1996 Wastewater Cost of Service and Rate Study) is addressed above in the first two recommendations. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: cos 2/18/97 agenda cover February 13, 1997 cw other 1997 Budget Policy Issues concerning East Mead Sewer Planning and Minor Stormwater System Repair. Please refer to attached 1997 Policy Issues. The Study Session was held on 2/4/97. Additional materials were prepared for Study Session and are included as attachments. Staff respectfully requests City Council adopt, by resolution. the 1996 Wastewater Cost of Service Study. and enact by ordinance the recommendations presented i n the Study. summarized in the November 20. 1996 transmittal and shown as follows with the amendment arrived at by Council deliberation. This will hold City Strongwaste rates at current levels. After further t stills of domestic wastewater, staff will return to City Council by mid year with a report on the findings. City Council direction will then be requested on whether to adjust the city Strongwaste rates or adjust the City Retail rates inresonse to the report's findings. The following recommendations are provided to adjust current rate and fee schedules to generate a target revenue increase of approximately $800,000 over the next two years. Actual revenue levels will vary due to implementation timing and amendments to sewer rate recommendations. •Pretreatment -- Section 6 Current Rate: $38.33/Bi-Monthly Program Charge Proposed Rate: $50.00/Bi-Monthly Program Charge Proposed adjustment of Testing Fees as Outlined in Section 6 •Non -Owner Domestic Existing Phase 1(1997) Phase I1(1998) These adjustments are equivalent to two annual 6% rate increases. Retail (County) - Ready to Serve $13.62 $14.44 $15.31 - Section 7 Volume/OUC $2.43 $2.58 $2.73 Increase( 10 UOC $0/Mn; (0%) $2.32/Mn; (6%) $2.37/Mn; (6%) •Non -Owner Retail. Strongwaste and Septage BOD/lb (increase) Existing $0.406 (0%) Phase I(1997) $0.444 (9%) Phase II(1998) $0.481 (8%) cos 2/18/97 agenda cover February 13, 1997 cw Waste -- Section 8 SS/lb (increase) $0.267 (0%) $0.372 (39%) $0.476 (28%) •Non -Owner Retail Strongwaste and Septage Waste Section 8 (continued) Increase/1,000 gallons $0; (0%) $35; (18%) $35; (15%) cost" rate with no direct subsidy by $/Gallon Septage Existing $0.195 Phase I(1997) $0.230 Phase II(1998) $0.265 These adjustments, by 1998, create a "full City Retail rate payers. .Municipal Wholesale Customers -- Section 9 No Council action required in this section. Rates are governed by 4 -Party Agreement and possible subsequent written clarifications. •Industrial Waste Customers -- Section 10 No action required. Adopted 1994 COS recommendations are implemented. being .City Strongwaste Retail Customers -- Section 11 BOD/lb (increase) SS/lb (increase) Existing $0.214 (0%) $0.140 (0%) The existing rates identified above will be continued until further review and deliberation by City Council at mid -year. The rates identified below are those recommended in the Study but are not adjusted in the sewer rate legislation attached. Phase I(1997) $0.250 (17%) $0.212 (51%) Phase II(1998) $0.286 (14%) $0.283 (33%) The rates at Phase II moves towards a "full cost" level with a direct subsidy by City Retail rate customers being reduced from 20% to 10%. •City Retail Customers -- Section 12 Working on the hypothesis that the above outlined approved by City Council, the following adjustments recommended. Ready to Serve Existing $7.33 Phase I(1997) $7.55 Phase II(1998) $7.78 Volume/OUC $1.31 $1.35 $1.39 adjustments are substantially to City Retail Customers are Increase010 UOC $0/Mn; (0%) $0.62/Mn; (3%) $0.63/Mn; (3%) These adjustments equate to an increase of 3% per year for the years 1997 and 1998. Projections indicate that continuing annual increases of around 3% are required; consistent with the observation in the 1994 COS. For a single family account using 10 units of consumption (UOC) per month, or 7,500 gallons, the rate increases are $0.62 and $0.63 per month for 1997 and 1998, respectively. Without the reduction in subsidies of other user classes by the City Retail cos 2/18/97 agenda cover February 13, 1997 cw customer (begun in earnest in the 1994 COS) the City Retail customer rate and rate increases would be substantially higher. DESCRIPTION OF ATTACHMENTS • Resolution Adopting 1996 Wastewater Cost of Service and Rate Study • Ordinance Implementing 1996 Wastewater Cost of Service and Rate Study Recommendations with City Council amendment Please Note: During the development of this ordinance and the draft Wastewater Connection Charge ordinance (which will be presented to you at a future date), "housekeeping" adustments in these sections were found to be necessary. These included some vocabulary and fund verbage adjustments. Old language is "struck -out" and new language is underlined. •1997 Wastewater Budget Policy Issues (.A,B,and C) •January 29, 1997 Study Session Memorandum •November 20, 1996 Transmittal of Cost of Service Study cos 2/18/97 agenda cover February 14, 1997 cw