HomeMy WebLinkAbout11/05/2013 17 Domestic Water Service Rates, Charges, Terms, Conditions of Service; YMC Amendment 7.68.250BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 11/5/2013
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
An ordinance establishing rates, charges, terms and
conditions for domestic water system service; amending
section 7.68.250 of chapter 7.68 of the City of Yakima
Municipal Code; and providing for an effective date.
Debbie Cook, Utilities and Engineering Director
David Brown, Water/Irrigation Manager
The City adopted the process of conducting five-year rate studies in 1996 to help stabilize rates
and ensure rates are adequate to fund water system operations and capital improvements. The
capital improvement program is adopted by Council through the six-year Water System Plan
and is incorporated within this study. A rate study was completed fall of 2012 that proposed
three 9% and two 3 %2% increases over the next five years.
The study was tabled to further review capital improvement needs and costs. No rate increase
was implemented in 2013. A new study reflecting the true costs for the capital program was
conducted in the spring 2013. This updated study proposed a 4% revenue increase in each
year starting in 2014 and ending in 2018. Closer analysis of the 2013 study shows that the utility
can forgo the proposed 4% water rate increase and still maintain at least a 60 -day operating
reserve as well as proceed with the planned capital improvement program until 2016. In 2017
and beyond, it is estimated that the operating reserve will drop below 60 days. However, it is
anticipated that increased revenue as a result of the more accurate automated meter reading
program and efficiencies in capital projects along with other cost saving efforts will result in
higher operating reserves in 2017 and 2018 than originally forecast. If anticipated revenues do
not materialize and/or capital improvement costs are higher than current estimates, there are a
number of solutions, including reducing transfers from the operating to capital fund, delaying
certain capital projects and/or increasing the 2015-2019 rates.
Water sales are down and have been for several years due to the economic downturn, and
people using less water through conservation. The study points out that Yakima is lower in the
fixed charges (Ready -to -Serve) than the national average of 30%, currently we are at 22% fixed
charge. Because of the lower volume of water sales we should raise our fixed charge to be
closer to the national average of 30%. This ordinance does raise the fixed charge from 22% to
27% of the revenue but also lowers the volume rate from $1.51 to $1.46 per 100 cubic feet of
water. No additional revenue will be generated. However, some users will see a slight increase
in their utility bill and some will have a slight decrease.
Resolution:
Other (Specify):
Contract:
Start Date:
Item Budgeted: Yes
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Adopt the ordinance
ATTACHMENTS:
Description
❑ Ordinance
❑ Ordinance clean
Ordinance: X
Contract Term:
End Date:
Amount:
No gain in revenue, increases the base charge and
lowers the volume charge
Public Trust and Accountability
City Manager
Upload Date
10/22/2013
10/30/2013
Type
Ordinance
Cover Memo
AN ORDINANCE
ORDINANCE NO. 2013 -
establishing rates, charges, terms and conditions for domestic water
system service; amending section 7.68.250 of chapter 7.68 of the City
of 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 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 of Chapter 7.68 of the City of Yakima Municipal
Code is hereby amended to read as follows:
"7.68.250 Water services charges.
A. From February 1, 2008 through December 31, 2008, 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
Charges:
Meter size
Charge per Two -
Month Period
3/" and smaller
$9.18
1"
12.67
1-1/2"
22.26
2"
33.30
Page 1 of 4 pages
3"
59.06
4"
95.83
6"
187.74
8"
371.62
10"
555.46
12"
812.88
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
0-250
Over 250
Rate Per UOC
1.26
1.18
B. For calendar years 2009 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:
Ready -to -Serve Charges per Two -Month Period
Meter size
2009
Jan 1
2010
Jan 1
2011
Jan 1
2012
Feb 1
and beyend
2014
Jan 1
and beyond
3/" and smaller
9.79
10.42
11.04
15.91
17.54
1"
13.57
14.47
15.33
20.09
22.14
1-1/2"
22.94
24.52
25.95
31.24
34.43
2"
34.24
36.62
38.74
44.67
49.23
3"
60.60
64.89
68.62
76.03
83.80
4"
98.25
105.26
111.30
120.82
133.17
6"
192.31
206.09
217.90
232.70
256.48
8"
380.52
407.89
431.22
453.59
499.94
10"
568.68
609.62
644.47
680.41
749.93
12"
832.15
892.09
943.08
993.82
1095.37
Page 2 of 4 pages
Charge for Water Consumed per UOC
UOC
2009
2010
2011
2012
2014
Jan 1
Jan 1
Jan 1
Jan 1
ate -beyond
Jan 1
and beyond
0 250
1.29
1.36
1.44
1.51
1.46
Over 250
1.36
4-:44
1.51
C.
month period is defined as water service for thirty two days to two months.The Ready -to -
Serve charge shall be computed on a daily basis.
D.
3 inch shall be one half the two month Ready to Serve charge above plus the charge for
3
domestic water for a one month period shall be thc 3 inch two month Rudy to Scrvc chargc
charge for domestic water for a two month period for all meter sizes shall be the two month
Ready to Serve chargc abovc plus thc chargc for six (6) UOC at thc 0 250 UOC ratc
above.The minimum use charge is computed the cost for six (6) units of consumption divided
by 60 days.
E. The minimum charge is the daily Ready -to -Serve charge plus the daily minimum use
charge.
EF. All charges for water supplied outside the city shall be computed by multiplying the
applicable rates set forth in paragraphs A through D of this section by one and one-half.
G. 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. 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 3. 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.
Page 3 of 4 pages
PASSED BY THE CITY COUNCIL at a regular meeting and signed and approved this 5th
day of November, 2013.
ATTEST:
Sonya Claar Tee, City Clerk
Publication Date: 11/ /13 (ordinance certification)
Effective Date:
Micah Cawley, Mayor
Page 4 of 4 pages
AN ORDINANCE
ORDINANCE NO. 2013 -
establishing rates, charges, terms and conditions for domestic water
system service; amending section 7.68.250 of chapter 7.68 of the City
of 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 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 of Chapter 7.68 of the City of Yakima Municipal
Code is hereby amended to read as follows:
"7.68.250 Water services charges.
A. From February 1, 2008 through December 31, 2008, 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
Charges:
Meter size
Charge per Two -
Month Period
3/" and smaller
$9.18
1"
12.67
1-1/2"
22.26
2"
33.30
3"
59.06
Page 1 of 3 pages
4"
95.83
6"
2009
Jan 1
187.74
8"
2012
Feb 1
371.62
10"
9.79
555.46
12"
15.91
812.88
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
0-250
Over 250
Rate Per UOC
1.26
1.18
B. For calendar years 2009 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:
Ready -to -Serve Charges per Two -Month Period
Meter size
2009
Jan 1
2010
Jan 1
2011
Jan 1
2012
Feb 1
2014
Jan 1
and beyond
3/" and smaller
9.79
10.42
11.04
15.91
17.54
1"
13.57
14.47
15.33
20.09
22.14
1-1/2"
22.94
24.52
25.95
31.24
34.43
2"
34.24
36.62
38.74
44.67
49.23
3"
60.60
64.89
68.62
76.03
83.80
4"
98.25
105.26
111.30
120.82
133.17
6"
192.31
206.09
217.90
232.70
256.48
8"
380.52
407.89
431.22
453.59
499.94
10"
568.68
609.62
644.47
680.41
749.93
12"
832.15
892.09
943.08
993.82
1095.37
Charge for Water Consumed per UOC
Page 2 of 3 pages
UOC
2009
2010
2011
2012
2014
Jan 1
Jan 1
Jan 1
Jan 1
Jan 1
and beyond
1.29
1.36
1.44
1.51
1.46
C. The Ready -to -Serve charge shall be computed on a daily basis.
D. The minimum use charge is computed the cost for six (6) units of consumption divided by
60 days.
E. The minimum charge is the daily Ready -to -Serve charge plus the daily minimum use
charge.
F. All charges for water supplied outside the city shall be computed by multiplying the
applicable rates set forth in paragraphs A through D of this section by one and one-half.
G. 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. 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 3. 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 5th
day of November, 2013.
ATTEST:
Sonya Claar Tee, City Clerk
Publication Date: 11/ /13 (ordinance certification)
Effective Date:
Micah Cawley, Mayor
Page 3 of 3 pages