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Home My WebLink AboutReg 2012-11-19 Item 4D - Resolution - 2013 Public Works Fee ScheduleCOUNCIL AGENDA SYNOPSIS nazals Meetin Date Pre ared b Ma or's review Council mview 11/13/12 BG Resolution Mtg Date 11/19/12 ttc 11/19/12 BG ❑Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&'R Police P1V SPONSOR'S The City's water, sewer, and surface water rates need to be increased to meet operational SUMMARY and capital expenditures. The single and multi family minimum water meter charge will increase from $12.00 to $14.00 and multi family consumption charges will increase to $2.92/$4.08. The sewer fund's monthly residential flat rate will increase from $19.26 to $23.10 and King County will increase their sewer fees in 2013 from $36.10 to $39.79. The surface water fees will increase from $102.00 to $107.00 for residential parcels. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/23/12 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Majority Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: 401 WATER, 402 SEWER, AND 412 SURFACE WATER Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEM NO. 4.D. 25 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE Resolution updating the Public Works Fee Schedule for the 2013 Water, Sewer, and Surface Water Rates CATEGORY Discussion Mt g Date 11/13/12 Motion Mtg Date Resolution Mtg Date 11/19/12 Ordinance Mtg Date BidAward Mt Date Public Hearing Mtg Date ❑Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&'R Police P1V SPONSOR'S The City's water, sewer, and surface water rates need to be increased to meet operational SUMMARY and capital expenditures. The single and multi family minimum water meter charge will increase from $12.00 to $14.00 and multi family consumption charges will increase to $2.92/$4.08. The sewer fund's monthly residential flat rate will increase from $19.26 to $23.10 and King County will increase their sewer fees in 2013 from $36.10 to $39.79. The surface water fees will increase from $102.00 to $107.00 for residential parcels. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/23/12 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Majority Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: 401 WATER, 402 SEWER, AND 412 SURFACE WATER Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/19/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 10/19/12 Exhibits A, B and C Draft Resolution Public Works Fee Schedule Attachments D, E and F Seattle Times Water Rate article dated 10/12/12 Minutes from the Utilities Committee meeting of 10/23/12 11/19/12 Informational Memo dated 11/16/12 with 2 attachments, based on 11/13/12 Council request Resolution in final form 25 26 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM To: Mayor Haggerton City Council From: Bob Giberson, Public Works Director By: Gail Labanara, Public Works Analyst Date: November 16, 2012 Subject: Water, Sewer, and Surface Water Rates for 2013 Sewer Fund Options ISSUE Analysis of the Interfund Utility Tax on the Sewer Fund's Attachment E. BACKGROUND Council was presented the 2013 rate increases for the City's Water, Sewer, and Surface Water utilities on November 13, 2012. Council specifically discussed the Sewer Fund and Attachment E. The Sewer fund is currently not reaching the 20% Reserve policy until 2016. One option discussed was reducing the interfund utility tax from its current rate of 10% to 6 but Council requested more information on how long that would be necessary and what the financial impact would be on the City. ANALYSIS Attached is the original Attachment E from the Preliminary CIP presented on 10/22/12. The 20% Reserve policy as outlined in Resolution 1774, states that the minimum reserves should be attained no later than the end of 2014. With the 10/22/12 Preliminary Attachment E model for the Sewer Fund, the reserve policy was implemented in 2013 and is deficient in 2013, 2014, and 2015. The second Attachment E has the reserve policy set to begin in 2014 rather than 2013. The yellow highlighted changes show the interfund utility tax reduced from the current 10% level to 6% for two years in 2014 and 2015. With this two year reduction, the fund meets the reserve policy in year 2015. The financial impact of the two year reduction is $512,000.00. This item is information only at this time as further analysis will be needed along with a presentation of all of the options available for the Sewer Fund. Options may require that the Interfund Utility Tax Ordinance No. 2298 be amended. Attachment A and the General Fund will also be impacted by any change to the interfund utility tax. We propose that these issues be presented to the Utilities Committee and Council in 2013. RECOMMENDATION Information only. Attachments: Sewer Attachment E -Original from 10/22/12 CIP Sewer Attachment E 6% Utility Tax in 2014 2014 WAPW Eng \OTHER \Gail Labanara \Water Sewer Documents \Info Memo Sewer Fund 11- 16- 12.docx 27 m ATTACHMENT E City of Tukwila SEWER ENTERPRISE FUND 2013 2018 Analysis in 000's Preliminary CIP 10/2 REVENUES Actu al ctu 2011 Actual Bud z ma Estima te 2013 2014 2015 2016 2017 2018 Totals Monthly Sewer Charges +15% +20% +20% +20% +20% +10% +15% +10% +15% King County Metro Sewer (1) 3,572 3,385 3,749 3,400 3,749 3,749 4,161 4,161 4,577 4,577 24,974 Regular City Sewer (2) 1,522 2,128 1,572 2,000 1,886 2,169 2,342 2,647 2,859 3,230 15,133 40,107 Subtotal Sewer Revenue 5,094 5,513 5,321 5,400 5,635 5,918 6,503 6,808 7,436 7,807 Other Misc. Revenue 290 184 81 125 150 150 160 180 200 210 1,050 Grant /Bonds /PWTF 886 1,228 640 400 750 458 1,756 1,757 0 750 5,471 Sewer Connection Fees (3) 107 115 120 52 120 120 125 125 100 100 690 47,318 Total Revenues 6,377 7,040 6,162 5,977 6,655 6,646 8,544 8,870 7,736 8,867 EXPENDITURES Sewer Operations Maintenance King County Metro Sewer (a) 3,088 3,385 3,749 3,400 3,749 3,749 4,161 4,161 4,577 4,577 24,974 Regular City Sewer (5) 997 913 867 950 987 1,012 1,036 1,067 1,099 1,132 6,333 Debt Service (6) 358 357 356 356 355 354 392 391 709 710 2,911 Interfund Utility Tax (7) 10% 618 562 547 500 579 609 666 699 764 802 4,118 Engineering Labor (9) 82 137 73 100 74 77 78 80 83 85 477 38,813 Subtotal 5,143 5,354 5,592 5,306 5,744 5,801 6,333 6,398 7,232 7,306 Sewer Capital CIP Program 970 2,327 805 400 1,420 883 1,831 1,832 500 1,075 7,541 46,354 Total Expenditures 6,113 7,681 6,397 5,706 7,164 6,684 8,164 8,230 7,732 8,381 FUND BALANCE Change in Working Capital (a) 264 (641) (235) 271 (509) (38) 380 640 4 487 964 Beginning Balance 2,348 1,685 854 854 1,100 592 553 933 1,574 1,578 1,100 2,064 Ending Balance 2,612 1,044 619 1,125 592 553 933 1,574 1,578 2,064 Working Capital Components: Reserved 20% of prior year's revenue 1,115 1,181 1,238 1,358 1,423 1,547 1,547 Unreserved (524) (628) (304) 216 155 517 517 I F Ending Balance 2,612 1,044 619 1,125 592 553 933 1,574 1,578 2,064 1 2,06j If the Ending Fund Balance (Accumulated Totals listed above) goes negative, an interfund loan would be requested and an emergency rate increase may be considered. (a) Revenues in excess of (less than) expenditures 2013 2018 Financial Planning Model XXV11 1111512012 29 30 ATTACHMENT E City of Tukwila SEWER ENTERPRISE FUND 2013 2018 Analysis in 000's 6 /o utility tax in With 0 d 20 15• 2014 ar of 51,7 000 pt REVENUES 2010 Actual 2011 Actual 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 2018 Totals Monthly Sewer Charges +15% +20% +20% +20% +20% +10% +15% +10% +15% King County Metro Sewer (1) 3,572 3,385 3,749 3,400 3,749 3,749 4,161 4,161 4,577 4,577 24,974 Regular City Sewer (2) 1,522 2,128 1,572 2,000 1,886 2,169 2,342 2,647 2,859 3,230 15,133 40,107 Subtotal Sewer Revenue 5,094 5,513 5,321 5,400 5,635 5,918 6,503 6,808 7,436 7,807 Other Misc. Revenue 290 184 81 125 150 150 160 180 200 210 1,050 Grant /Bonds /PWTF 886 1,228 640 400 750 458 1,756 1,757 0 750 5,471 Sewer Connection Fees (3) 107 115 120 52 120 120 125 125 100 100 690 47,318 Total Revenues 6,377 7,040 6,162 5,977 6,655 6,646 8,544 8,870 7,736 8,867 EXPENDITURES Sewer Operations Maintenance King County Metro Sewer (4) 3,088 3,385 3,749 3,400 3,749 3,749 4,161 4,161 4,577 4,577 24,974 Regular City Sewer t5' 997 913 867 950 987 1,012 1,036 1,067 1,099 1,132 6,333 Debt Service (6) 358 357 356 356 355 354 3 391 709 710 2,911 Interfund Utility Tax (1) 10% 618 562 547 500 r 579 364 I L 400 699 764 802 3,606 Engineering Labor (9) 82 137 73 100 74 77 78 80 83 85 477 38,301 Subtotal 5,143 5,354 5,592 5,306 5,744 5,556 6,067 6,398 7,232 7,306 Sewer Capital CIP Program 970 2,327 805 400 1,420 883 1,831 1,832 500 1,075 7,541 45,842 Total Expenditures 6,113 7,681 6,397 5,706 7,164 6,439 7,898 8,230 7,732 8,381 FUND BALANCE Change in Working Capital tai 264 (641) (235) 271 (509) 207 647 640 4 487 1,476 Beginning Balance 2,348 1,685 854 854 1,100 592 798 1,445 2,085 2,089 1 1,100 2,576 Ending Balance 2,612 1,044 619 1,125 592 798 1,445 2,085 2,089 2,576 W orking Capital Components: Reserved (b) 20% of revenue 1,181 1,238 1,358 1,423 1,547 1,547 Unreserved (383) 207 727 667 1,029 1,029 Ending Balance 2,612 1,044 619 1,125 798 1,445 2,085 2,089 2,576 2,576 If the Ending Fund Balance (Accumulated Totals listed above) goes negative, an interfund loan would be requested and an emergency rate increase may be considered. (a) Revenues in excess of (less than) expenditures (b) Annual reserve balance requirement equals 20% of the prior year operating revenues. 2013 2018 Financial Planning Model XXV 11 1111512012 31 32 Ci TuiKwi W ashingto n r WHEREAS, each year the City analyzes the rate model for the three utility enterprise funds, which are water, sewer and surface water, to ensure revenues keep pace with expenses, to update the traffic model, and to analyze the transportation network to ensure continued compliance with the Growth Management Act and the City's adopted Comprehensive Plan; and WHEREAS, the City is authorized to impose fees to recoup the costs of services rendered; NOW, THEREFORE, THE CITY COUNCIL OF WASHINGT RESOLVES AS FOLLOWS: Section 1. Public Works fees will be charged according to the following schedule, which shall supersede any previously adopted Public Works Fee Schedule: PERMIT DESCRIPTION FEE Type A Short -Term Non-profit) 50.00 Type B Short -Term Profit $100.00 Type C (Infrastructure and Grading on Private Property and City Right -of -Way and Disturbance of City Right -of -Way) $250.00 application base fee, plus four components based on construction value: 1) Plan Review 2) Construction Inspection 3) Pavement Mitigation 4 Grading Plan Review Type D (Long-Term) $100.00 Type E (Potential Disturbance of City Right-of-Wa $100.00 Type F (Blanket Permits) $250.00 processing fee, plus $5,000.00 cash deposit, withdraw $100.00 per insta for inspection Additional Inspections $60.00 per inspection Franchise Telecommunications $5,000.00 admini strative fee Franchise Cable $5,000.00 plus 5% of total revenue Street Vacation 1,200.00 W:\Word Process inb City\Resohrtions \PW Fee Schedule -2012 rev 11- 13- 12.doc Page 1 of 5 33 PERMIT DESCRIPTION FEE Latecomer's Agreements $500.00 processing fee, plus 17% administrative fee, p lus $500.00 segregation fee Flood Zone Control $50.00 Copy of City of Tukwila's Infrastructure Design and Construction Standards $50.00 WATER RATES FEE Water Meter Installation .75 inch 600.00 1 inch 1,100.00 1.5 inch 2,400.00 2 inch 2,800.00 3 inch 4,400.00 4 inch 7,800.00 6 inch $12,500.00 Water Meter Deduct $25.00 Water Base Charge (Monthly) In addition to the monthly water base charge, each 100 cubic feet of water used will be charged as shown in "Water Rates (Monthly)." Single Family (one dwelling unit) 14.00 Multi Family (more than one dwelling unit) 14.00* Commercial /Industrial Customers: *each dwelling unit 3/4 inch Service 40.00 1 inch Service 50.00 1 -1/2 inch Service 75.00 2 inch Service $100.00 3 inch Service $145.00 4 inch Service $195.00 6 inch Service $290.00 8 inch Service $385.00 10 inch Service $480.00 12 inch Service $575.00 Water Rates (Monthly) In addition to the monthly water base charge listed above, each 100 cubic feet of water will be charged at the following rates: Single Family Residence (Oct -May) $2.80 Single Family Residence (Jun -Sept) $3.90 Multi Family (Oct -May) $2.92 Multi Family (Jun -Sept) $4.08 Commercial /Industrial (Oct -May) $3.98 Commercial /Industrial (Jun -Sept) $5.46 Fire Protection Service Charges (Monthly) Per month based on size of service. 2 inch Service 9.00 3 inch Service 20.00 4 inch Service 35.00 6 inch Service 80.00 8 inch Service $120.00 10 inch Service $200.00 12 inch Service $260.00 34 W \Word Process inb City\Resolutions \PW Fee Schedule -2012 rev 11- 13- 12.doc Page 2 of 5 WATER SERVICES FEE Water Turn On 50.00 After -Hour Water Turn On additional fee for [TMC 14.16.030 (1)] customer requested after -hours water turn on $100.00 Unauthorized Water Usage after shut -off for $100.00 non payment Flat rate of $40.48 per month and, in addition, any Special Meter Read customer requested 30.00 meter read outside normal read schedule be at the rate of $40.48 per 750 cubic feet Shut -off notice 30.00 Change in owner, tenant, and /or third party 20.00 paying agent On all sewer accounts 30 days in arrears from Fire Hydrant per month 20.00 Emergency Conservation Sanction $100.00 Temporary Water Meter Deposit 71 85% Developed Surface .75" and 1" water meter 300.00 2.5" water meter $1,500.00 Temporary Water Meter Rental per minimum 60 days expiration Single Family Residential Parcels .75" and 1" water meter 75.00 2.5" water meter 150.00 WATER INTEREST CHARGE RATE On all water accounts 30 days in arrears from the date of delinquency until paid 8% per annum computed on a monthly basis SEWER RATES FEES Residential Sewer Service Flat rate of $23.10 per month (single dwelling unit) [TMC 14.16.030 (1)] Residential Sewer Service (multiple dwelling Flat rate of $23.10 per month for each dwelling unit unit, permanent type) [TMC 14.16.030 (2)] Commercial and Industrial Sewage Service Flat rate of $40.48 per month and, in addition, any usage over 750 cubic feet of water per month shall 2. be at the rate of $40.48 per 750 cubic feet [TMC 14.16.030 (4)] 3. SEWER INTEREST CHARGE RATE On all sewer accounts 30 days in arrears from 4. the date of delinquency until paid 8% per annum computed on a monthly basis W: \Word Process inb City \Resolutions \PW Fee Schedule -2012 rev 11- 13- 12.doc Page 3 of 5 35 SURFACE WATER RATES FEE PER YEAR Surface Water Utility Rates Per Year Service Charge Per Acre Category 1. Natural 129.32 2. 0 20% Developed Surface 281.15 3. 21 50% Developed Surface 515.30 4. 51 70% Developed Surface 768.90 5. 71 85% Developed Surface 926.32 6. 86 100% Developed Surface $1,080.55 7. Single Family Residential Parcels 107.00 per parcel W: \Word Process inb City \Resolutions \PW Fee Schedule -2012 rev 11- 13- 12.doc Page 3 of 5 35 SURFACE WATER INTEREST CHARGE RATE On all surface water accounts 30 days in arrears from the date of delinquency until paid 8% per annum computed on a monthly basis TRANSPORTATION CONCURRENCY TEST FEE SCHEDULE Fees for Residential Use UNIT ALL TYPES OF RESIDENTIAL Between 1 and 3 300.00 Between 4 and 5 600.00 Between 6 and 10 1,200.00 Between 11 and 15 2,000.00 Between 16 and 20 3,500.00 Between 21 and 25 5,000.00 Between 26 and 30 6,500.00 Between 31 and 40 8,000.00 Between 41 and 60 $10,000.00 Greater than 60 $12,000.00 All residential uses defined by the ITE Trip Generation Manual Land Use Codes 200 -299, including single family, multi-family, mobile home parks, and shared housin Fees for Non Residential Use GROSS FLOOR AREA INDUSTRIAL OFFICE RETAIL EATERY INSTITU- TIONAL PORT ALL OTHER USES Less than 5,000 $1,000 $1,800 $2,700 $5,400 $500 $1,500 Between 5,001 and 10,000 $1,500 $2,700 $4,050 $8,100 $1,000 $2,000 Between 10,001 and 20,000 $2,000 $3,600 $5,400 $10,800 $1,500 $2,500 Between 20,001 and 30,000 $3,000 $5,400 $8,100 $10,800 $2,000 $2,500 Between 30,001 and 40,000 $4,000 $7,200 $10,800 $10,800 $2,500 $2,500 Between 40,001 and 50,000 $5,000 $9,000 $13,500 $10,800 $3,000 $2,500 Between 50,001 and 70,000 $6,000 $10,800 $16,200 $10,800 $4,000 $2,500 Between 70,001 and 90,000 $7,000 $12,600 $18,900 $10,800 $5,000 $2,500 Between 90,001 and 150,000 $8,000 $14,400 $21,600 $10,800 $6,000 $2,500 Between 150,001 and 200,000 $9,000 $16,200 $24,300 $10,800 $7,000 $2,500 Greater than 200,000 $10,000 $18,000 $24,300 $10,800 $8,000 $2,500 2 All industrial /agricultural uses defined by the ITE Trip Generation Manual Land Use Codes 100 -199, including light and heavy industrial, manufacturing, and warehousin 3 All office, medical, and service related uses defined by the ITE Trip Generation Manual Land Use Codes 600 -699, 700 -799, and 900 -999, including general office, medical facilities, and banks 4 All retail and recreation uses defined by the ITE Trip Generation Manual Land Use Codes 400 -499, 800 -830 and 837 -899, including retail sales, rental sales, athletic clubs, and theaters 5 All food service uses defined by.the ITE Trip Generation Manual Land Use Codes 831 -836, excluding accessory (stand alone) drive through espresso stands (or similar) under 250 sq. ft., which are assessed $300 6 All institutional and transportation uses defined by the ITE Trip Generation Manual Land Use Codes 000 -099 and 500 -599, including schools, places of worship, day care, terminals, and transit 36 W' \Word Process ing City \Resolutions\PW Fee Schedule -2012 rev 11- 13- 12.doc Page 4 of 5 Section 2. Repealer. Resolution No. 1755 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Verna Seal, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney WAWord Processing- City\Resolutions\PW Fee Schedule -2012 rev 11- 13- 12.doc Page 5 of 5 1 37