HomeMy WebLinkAboutCOW 2006-10-23 Item 4B - Ordinance - King County Metro Sewer Rate Pass Through for 2007 Sewer Disposal Fees COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
CAS NUMBER: 06-123 ORIGINAL AGENDA DATE: OCTOBER 23, 2006
AGENDA ITEM TITLE Metropolitan King County Sewer Rate Pass through for 2007 Sewage Disposal Fees
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 10/23/06 Mtg Date Mtg Date Mtg Date 11/06/06 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal Pd7R Police PTV
SPONSOR'S Metropolitan King County has adopted Ordinance No. 15522 increasing the 2007 monthly
SUMMARY sewer fee from $25.60 per month to $27.95 per residence or per residential equivalent for
King County component agencies. As a component agency, Tukwila passes these costs on
to their sewer customers. The King County Metro sewage capacity charge will also
increase from $34.05 per month to $42.00 in 2007.
REVIEWED BY COW Mtg. CA &P Cmte F&S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 10/17/06
RECOMMENDATIONS:
SPONSOR /ADMIN. Approve ordinance increasing the King County Metro sewer fees
COMMfl rEE Unanimous approval; forward to COW
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source: 402 Sewer Fund
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
10/23/06
11/06/06
MTG. DATE ATTACHMENTS
10/23/06 Information Memo dated October 11, 2006
Utility Rate Matrix
Exhibit B Metropolitan King County Adopted Ordinance No. 15522
Exhibit C City of Tukwila Ordinance
Tukwila Ordinance No. 2059
Utilities Committee Meeting Minutes from October 17, 2006
INFORMATION MEMO
To: Mayor Mullet
From: Public Works Director
Date: October 11, 2006
Subject: Metropolitan King County Sewer Rate Pass through for 2007 Sewage
Disposal Fees
ISSUE
Adopt King County Metro pass through for sewer treatment costs effective January 1, 2007.
BACKGROUND
Metropolitan King County has adopted Ordinance No. 15522 showing the monetary
requirements for sewage disposal. The King County monthly fee for the disposal of sewage is
increasing from $25.60 per month to $27.95 per residence or per residential equivalent. As a
component agency, Tukwila passes these costs on to their sewer customers.
Also of note the King County sewage capacity charge will increase from the current $34.05 per
month for fifteen years to $42.00 per month for fifteen years for any sewer connection
occurring between January 1, 2007, and December 31, 2007. For any new sewer connections
occurring between January 1, 2008, and December 31, 2008, the amount will be $50.00 per
month for fifteen years.
In addition to the King County sewage disposal fee, the Tukwila base rate is scheduled for an
increase in accordance with the rate model that analyzes the City's operational and capital
needs. The City sewer rate will increase from $8.00 to $8.80 per residential connection, and
from $14.00 to $15.40 for up to 7 cubic feet or fraction thereof for the commercial/
industrial customers.
Public Works has analyzed the needs of the water enterprise fund as well. The last rate
increase for monthly water charges was in 2000. Wholesale price increases will start next year
and into 2008. A rate increase is being proposed to maintain rate stabilization and diffuse
larger rate increases that could happen later (see following table). A portion of this increase
will provide the funds necessary for continuing operational and capital needs.
Mayor Mullet
Page 2
October 11, 2006
Fire protection charges are the rate for private fire protection lines and have not been increased
since 1996. These charges defray expenses related to building sprinkler systems and hydrants.
An increase from $5.00 to $6.00 in the base computation rate is proposed.
No increase in Storm and Surface Water fees is proposed for 2007.
RECOMMENDATION
Approve the pass through rate increases for sewer treatment costs effective January 1, 2007.
Attachments: Utility Rate Matrix
Exhibit B Metropolitan King County Adopted Ordinance No. 15522
Exhibit C City of Tukwila Ordinance
Tukwila Ordinance No. 2059
Utilities Committee Meeting Minutes from October 17, 2006
EXHIBIT A
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Metropolitan King County Council
Anne Noris, Clerk of the Council
If King County Courthouse
516 Third Avenue, Room W1039
Seattle, WA 98104 -3272
206 296 -1020
206 205 -8165 FAX
anne.noris @metrokc.gov RECEIVED
TTY/TDD 206 296 -1024
JUL 0 3 2006
TUKWILA
PUBLIC WORKS
June 30, 2006
Mr. Jim Morrow, Public Works Director
City of Tukwila
6300 Southcenter Blvd. Suite 100
Tukwila, WA 98188
Dear Mr. Morrow,
Monetary Requirements for 2007
The Metropolitan King County Council approved the sewer rate for 2007 and the sewage
treatment capacity charge for 2007 with the adoption of Ordinance 15522 on June 19, 2006.
A copy of Ordinance 15522 is enclosed for your information.
If you have any questions, please call the Clerk of the Council's Office at 206 296 -1020.
Sincerely,
Anne Noris
Clerk of the Council
Enclosure
KING COUNTY 1200 King County Courthouse
516 Third Avenue
Seattle. WA 98104
Signature Report
June 19, 2006
Ordinance 15522
Proposed No. 2006 Sponsors Constantine
1 AN ORDINANCE the monetary requirements
2 for the disposal of sewage for the fiscal year beginning
3 January 1, 2007, and ending December 31, 2007, setting
4 the sewer rate for the fiscal year beginning January 1, 2007,
5 and ending December 31, 2007, and approving the amount
6 of the sewage treatment capacity charge for 2007, in
7 accordance with RCW 35.58.570; and amending Ordinance
8 12353, Section 2, as amended, and K.C.C. 4.90.010,
9 Ordinance 15194, Section 2, and Ordinance 11398, Section
10 1, as amended, and K.C.C. 28.84.055_
11
12
13 BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
14 SECTION 1. Ordinance 12353, Section 2, as amended, and K.C.C. 4.90.010 are
15 each hereby amended to read as follows:
16 A. Having determined the monetary requirements for the disposal of sewage, the
17 council hereby adopts a ((2006)) 2007 sewer rate of
1
Ordinance 15522
18 twenty -seven dollars and ninety -five cents per residential customer equivalent per month.
19 Once a sewer rate ordinance becomes effective, the clerk of the council is directed to
20 deliver a copy of that ordinance to each agency having an agreement for sewage disposal
21 with King County.
22 B. The King County council approves the application of Statement of Financial
23 Accounting Standards No 71 (FAS 71) to treat pollution remediation obligations as
24 regulatory assets and establish a rate stabilization reserve for the purpose of leveling rates
25 between years.
26 C. As required for FAS 71 application amounts are to be placed in the rate
27 stabilization reserve from ((2005)) operating revenues and removed from the calculation
28 of debt service coverage ((for 2005)). The reserve balance shall be an amount at least
29 sufficient to maintain a level sewer rate between (0005)) 2007 and ((2-006)) 2008, and
30 shall be used solely for the purposes of: maintaining the level sewer rate in ((2006))
31 2008; and if additional reserve balance is available, moderating future rate increases
32 beyond the ((2005 2006)) 2007 -2008 period. If the estimated amount of the reserve, as
33 shown in the financial forecast, Attachment A to ((Ordinance 11942)) this ordinance.
34 needs to be adjusted to meet debt service coverage requirements for ((2005)) 2007, the
35 county executive shall notify the council of the change by providing an updated financial
36 forecast.
37 D. The executive shall provide monthly cost reports to the council on Brightwater
38 as outlined in K.C.C. 28.86.165.
39 SECTION 2. Ordinance 15194, Section 2, is hereby amended to read as follows:
2
Ordinance 15522
40 Monetary requirements for the disposal of sewage for the fiscal year beginning
41 January 1, ((2006))2007, and ending December 31, ((2086))2007. The council hereby
42 determines the monetary requirements for the disposal of sewage as follows:
43 Administration, operating, maintenance repair and replace (net of other income):
44 (($62,681,812)) $66,229,533.
45 Establishment and maintenance of necessary working capital reserves:
46 (($6,168,334)) $3,478,065
47 Requirements of revenue bond resolutions (not included in above items and net of
48 interest income): (($113,209,093)) $161,689,558.
49 TOTAL: 0212,059,238)) $231,397,156.
50 SECTION 3. Ordinance 11398, Section 1, as amended, and K.C.C. 28.84.055 are
51 each hereby amended as follows:
52 A. The amount of the 1994 metropolitan sewage facility capacity charge adopted
53 by K.C.C. 28.84.050.0_ shall be seven dollars per month per residential customer or
54 residential customer equivalent for 'fifteen years.
55 B. The amount of the 1995 metropolitan sewage facility capacity charge adopted
56 by K.C.C. 28.84.050.0. shall be seven dollars per month per residential customer or
57 residential customer equivalent for fifteen years.
58 C. The sewage treatment capacity charge shall be seven dollars per month per
59 residential customer or equivalent for fifteen years for sewer connections occurring
60 between and including January 1, 1996, and December 31, 1996.
61 D. The amount of the sewage treatment capacity charge adopted by K.C.C.
62 28.84.050.0. shall be seven dollars per month per residential customer or equivalent for
3
Ordinance 15522
63 fifteen years for sewer connections occurring between and including January 1, 1997, and
64 December 31, 1997.
65 E. The amount of the sewage treatment capacity charge adopted by K.C.C.
66 28.84.050.0. shall be ten dollars fifty cents per month per residential customer or
67 equivalent for fifteen years for sewer connections occurring between and including
68 January 1, 1998, and December 31, 1998.
69 F. The amount of the sewage treatment capacity charge adopted by K.C.C.
70 28.84.050.0. shall be ten dollars fifty cents per month per residential customer or
71 equivalent for fifteen years for sewer connections occurring between and including
72 January 1, 1999, and December 31, 1999.
73 G. The amount of the sewage treatment capacity charge adopted by K.C.C.
74 28.84.050.0. shall be ten dollars fifty cents per month per residential customer or
75 equivalent for fifteen years for sewer connections occurring between and including
76 January 1, 2000, and December 31, 2000.
77 H. The amount of the sewage treatment capacity charge adopted by K.C.C.
78 28.84.050.0. shall be ten dollars fifty cents per month per residential customer or
79 equivalent for fifteen years for sewer connections occurring between and including
80 January 1, 2001, and December 31, 2001.
81 I. The amount of the sewage treatment capacity charge adopted by K.C.C.
82 28.84.050.0. shall be seventeen dollars and twenty cents per month per residential
83 customer or equivalent for fifteen years for sewer connections occurring between and
84 including January 1, 2002, and December 31, 2002.
4
Ordinance 15522
85 J. The amount of the sewage treatment capacity charge adopted by K.C.C.
86 28.84.050.0. shall be seventeen dollars and sixty cents per month per residential
87 customer or equivalent for fifteen years for sewer connections occurring between and
88 including January 1, 2003, and December 31, 2003.
89 K. The amount of the sewage treatment capacity charge adopted by K.C.C.
90 28.84.050.0. shall be eighteen dollars per month per residential customer or equivalent
91 for fifteen years for sewer connections occurring between and including January 1, 2004,
92 and December 31, 2004.
93 L. The amount of the sewage treatment capacity charge adopted by K.C.C.
94 28.84.050.0. shall be thirty -four dollars and five cents per month per residential customer
95 or equivalent for fifteen years for sewer connections occurring between and including
96 January 1, 2005, and December 31, 2005. ((For connections occurring between and
97 ember 31, 2006, said amount shall be t' r
98 dollars and five cents per month per residential customer or equivalent for fifteen years,
99
100
101
102 approved or changed during 2006)).
103 M. The amount of the sewage treatment capacity charge adopted by K.C.C.
104 28.84.050.0. shall be thirty -four dollars and five cents per month per residential customer
105 or equivalent for fifteen years for sewer connections occurring between and including
106 January 1, 2006, and December 31, 2006.
5
Ordinance 15522
107 N. The amount of the sewage treatment capacity charge adopted by K.C.C.
108 28.84.050.0. shall be forty -two dollars per month per residential customer or equivalent
109 for fifteen years for sewer connections occurring between and including January 1, 2007.
110 and December 31, 2007. For connections occurring between January 1, 2008. and
111 December 31, 2008, said amount shall be fifty dollars per month per residential customer
112 or eauivalent for fifteen years, to be reviewed, approved or changed during 2007.
113 In accordance with adopted policy FP- 123.d. in the Regional Wastewater
114 Services Plan, K.C.C. 28.86.160.C., it is the council's intent to base the capacity charge
115 upon the costs, customer growth and related financial assumptions used in the Regional
116 Wastewater Services Plan.
117 In accordance with adopted policy FP -3 in the Regional Wastewater Services
118 Plan, K.C.C. 28.86.160.C, the council hereby approves the cash balance and reserves as
119 contained in the attached financial plan for 2007.
120 In accordance with adopted policy FP- 12.3.c., King County shall pursue changes
121 in state legislation to enable the county to require payment of the capacity charge in a
6
Ordinance 15522
122 single payment, while preserving the option for new ratepayers to finance the capacity
123 charge.
124
Ordinance 15522 was introduced on 4/24/2006 and passed as amended by the
Metropolitan King County Council on 6/19/2006, by the following vote:
Yes: 9 Mr. Phillips, Mr. von Reichbauer, Ms. Lambert, Mr. Dunn, Mr.
Ferguson, Mr. Gossett, Ms_ Hague, Ms. Patterson and Mr. Constantine
No: 0
Excused: 0
KING COUN a COUNCIL
KIN CO ,WASH ON
Larry Philli,s C air
ATTEST:
N3LINA'l
Anne Noris, Clerk of the Council
APPROVED this
Z 0 day of et 2006. CC
Ro my Executive"
T ;z,
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Attachments A. Wastewater Treatment Enterprise 2007 Rate Financial Plan (6/19/06) 4-
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EXHIBIT C
EXHIBIT C
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON; AMENDING TUKWILA MUNICIPAL
CODE 14.16.065, TO RAISE THE CITY/METRO RATE FOR SANITARY
SEWER SERVICE DUE TO AN INCREASE BY THE METROPOLITAN
KING COUNTY COUNCIL; REPEALING ORDINANCE NO. 2059;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, the Metropolitan King County Council has notified the City of its intent to
increase its monthly charges to the City for sanitary sewage disposal from the present $25.60 per
month per residential equivalent to $27.95 per month per residential equivalent, said increase to
be effective January 1, 2007; and
WHEREAS, it is necessary for the City to pass this increase onto customers of the City
sewer system;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. City/Metro Rate. Ordinance No. 2059, as codified at Section 14.16.065 of the
Tukwila Municipal Code, is hereby amended to read as follows:
14.16.065 City /METRO Rate.
A. Regular Rate: The City/METRO charges as provided in Section 14.16.060 and as
required by the Agreement for Sewage Disposal between METRO and the City of Tukwila is set
at the sum of $27.95 (effective 1/1/07) per month per residential customer and per residential
customer equivalent as now defined or hereafter amended in the agreement for sewage disposal
between METRO and the City of Tukwila.
B. Reduced Rate Every person 62 years of age or older (if married, then either spouse) and
every person totally and permanently disabled residing in a separately metered dwelling and who
is paying directly for such separately billed service either as owner, purchaser or renter and
whose individual disposable income, if a single person, or whose combined disposable income, if
a married couple, from all sources is less than $32,000 per year, shall pay a rate equal to 50% of
the City/METRO charge. Every such person shall file with the Finance Department their affidavit
that he or she is qualified to be charged the special rate. Such affidavits are to contain
information as required by the Finance Director in order to establish eligibility. Each affidavit
will also include an unqualified promise to inform the City of any changes in financial condition
that would disqualify the person for special rates. The Finance Director may require affidavits on
an annual basis if deemed necessary.
Section 5. Repealer. Ordinance No. 2059 is hereby repealed.
H:\PUBWORKS \GA1L\King County Sewer Rate Ord 10- 11- 06.doc
Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of
this ordinance or its application to any person or situation should be held to be invalid or
unconstitutional for any reason by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of the remaining portions of
this ordinance or its application to any other person or situation.
Section 7. Effective Date. This ordinance or a summary thereof shall be published in the
official newspaper of the City, and shall take effect and be in full force and effect on
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of 2006.
Steven M. Mullet, Mayor
ATTEST /AUTHENTICATED:
Jane E. Cantu, CMC, City Clerk
APPROVED AS TO FORM:
By
Office of the City Attorney
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
H:\PUBWORKS \GAIL\King County Sewer Rate Ord 10- 11- 06.doc
Page 1 of 1
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City of Tukwila
Washington
Ordinance No. 21). 9
AN ORDINANCE OF THE CITY Y COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING TUKW LA MUNICIPAL CODE 14.16.065,
TO RAISE THE CITY/METRO RATE FOR SANITARY SEWER SERVICE
DUE TO AN INCREASE BY THE METROPOLITAN KING COUNTY
COUNCIL,; REPEALING ORDINANCE NO. 1979 AND NO. 2026 §4;
PROVIDING FOR SEVERABIL ITY; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, the Metropolitan King County Council has notified the City of its
intent to increase its monthly charges to the City for sanitary sewage disposal from the
present $23A0 per month per residential equivalent to $25.60 per month per residential
equivalent, said increase to be effective January 1, 2005; and
WHEREAS, it is necessary for the City to pass this increase on to customers of the
City sewer system;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON,. DO ORDAIN AS FOLLOWS;
Section 1. City/Metro Rate. Ordinance No. 2026, as codified at Section 14.16.065 of
the Tukwila Municipal Code, is hereby amended to read as follows;
1+f 16.065 City/Metro Rate,
A. Regular Rate. The City/METRO charges as provided in Section 14.16.060 and
as required by the Agreement for Sewage Disposal between METRO and the City of
Tukwila are set at the sun of $25.60 (effective 1 /1 /05y per month per residential
customer and per residential customer equivalent as now defined or hereafter amended
in the agreement for sewage disposal between METRO and the City of Tukwila.
B. Reduced Rate. Every person 62 years of age or older (if married, then either
spouse) and every person totally and permanently disabled residing in a separately
metered dwelling and who is paying directly for such separately billed service either as
i owner, purchaser or renter and whose individual disposable income, if a single person,
or whose combined disposable income, if a married couple, from all sources is less than
$12,040 per year, shall pay a rate equal to 50% of the City /METRO charge. Every such
person shall file with the Pittance Deparlment their affidavit that s /he is qualified to
receive the special rate. Such affidavits are to contain information as required by the
Finance Director in order to establish eligibility. Each affidavit will also include an
unqualified promise to inform the City of any changes in financial condition that would
disqualify the person for special rates. The Finance Director may require affidavits on
an annual basis if deemed necessary.
Section 2. Repealer. Ordinance No. 1979 and No. 2026 §4 are hereby repealed.
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Utilities Committee
October 17, 2006 5:00 p.m.
Present: Jim Haggerton, Chair; Pam Linder and Verna Griffin, Council members.
Jim Morrow, Director of Public Works; Frank Iriarte, Deputy Director; Bob Giberson,
Acting City Engineer; Pat Brodin, Operations Manager; Mike Cusick, S enior Engineer;
Ryan Larson, Senior Engineer; Gail Labanara, Public Works Analyst; Diane Jenkins,
Administrative Assistant to the Council, and Chuck Parrish, community member.
Business Agenda
A. Allentown/Foster Point Sewer Revenue Bonds
Mr. Morrow explained that the City is planning on issuing $3.3 million in bonds as a funding
source for the Allentown/Foster'Point Sewer Project. This information was also shared with
members of the Finance Safety Committee. Mr. Fuhrer noted that representatives from Foster
Pepper (bond counsel) and Lehman Brothers (bond underwriters) will be present at the
October 23 Committee of the Whole and November 6 Regular Council meeting to make
presentations and respond to questions. Mr. Fuhrer reviewed the process for the pricing and
selling of bonds. He noted that sewer will be paying the largest portion, however, water and
surface management will also pay a share. Also, the 1993 bond was retired this fall and he will
include information on this bond in the budget. Mr. Morrow conveyed that the project is going
well. More connections are being requested for water and sewer than originally planned and
those connections are only being provided to legal lots. Unanimous approval. Forward to
10/23 Committee of the Whole meeting.
B. Water and Sewer Rates for 2007
Mr. Morrow distributed a copy of "Single Family Sewer Waste Water Rates, October 2006."
Ms. Linder noted that, in the past, the city subsidized these rates. The Council realized it needed
to seek increases in incremental steps rather than one huge increase. Ms. Labanara noted that
there is a proposed 3% rate increase for water. There has not been a water increase since 2000.
Mr. Morrow noted that the water department and Enterprise Fund had a goal to reduce the loss of
water. Due to the efforts of the crews, a 15% water loss rate in 2005 dropped to 4.6% because of
the replacement of worn out pipes and having the necessary equipment to identify potential
problems. Ms. Griffin asked about the differences between water and fire lines. Mr. Cusick
replied fire lines are not metered. Ms. Labanara noted that fire line charges have not been
increased since 1996. Ms. Labanara then noted that King County sewer treatment is proposing a
9.17% increase and that fee will be passed through to the residents. The City of Tukwila's flat
monthly sewer fee factored in a 10% increase. This will put the City of Tukwila in the middle in
comparison with other cities. Mr. Haggerton requested that both the old and new City
ordinances be included in the packet for review by the Council. There are no increases planned
for surface water. Unanimous approval. Forward to Regular Council for approval.