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Home My WebLink AboutCOW 2003-08-25 Item 3C.1 - Resolution - Amend Public Works Fee ScheduleCAS Number: 03-112 Agenda Item Title: Original Sponsor: Timeline: Sponsor's Summary: Recommendations: Sponsor: Committee: Administration: Cost Impact (if known): I Fund Source (if known): 1 Meeting Date 1 8/25/03 1 Meeting Date 1 8/25/03 COUNCIL AGENDA SYNOPSIS Initials Meeting Date 1 Prepared by 1 Mayor's review 1 Council review 8/25/03 1 PB (rq 1 SovwA I _l!C. "I Amend Resolution for Public Works Fee Schedule, Adopt Ordinance for Sewer Rate Increase, and Repeal Ordinance Nos. 936 and 1776. Council Admin. Public Works This City's sewer rate was last increased in 1996 under Ordinance No. 1776 and is no longer sufficient to operate the sewer enterprise fund. The customer's monthly bill includes the KC Metro sewer treatment rate of $23.40 and the City's portion of $5.00, which pays for the system operations, maintenance and improvements. Last year the fund dipped into reserves by $194,000. A $2.00 increase is needed to stop the use of the ending fund balance and will cover replacement costs and any contingencies. Ordinance No. 936 set the inspection fees in 1975 and needs to be updated to our current practices and fees. Adopt Ordinance for Sewer Rate Increase, Amend Resolution and Repeal Ordinance Nos. 936 and 1776. Forward to Committee of the Whole for discussion and approval. 1 1 ITEM INFORMATION Original Agenda Date: August 25, 2003 OI NCIL,ACTION Action APPENDICES Attachments Information Memo dated August 13, 2003 Resolution of Public Works Fee Schedule Ordinance Utilities Committee Meeting Minutes from August 19, 2003 ITEMNO. 3 c INFORMATION MEMO To: Mayor Mullet From: Public Works Director Date: August 13, 2003 Subject: Sewer Utility Rates ISSUE Proposed sewer utility rate increase for the City. BACKGROUND Tukwila last adjusted the sewer rates in December of 1996 under Ordinance No. 1776, increasing the City portion from $4.00 to $5.00. The customer's monthly bill includes Metro's sewer treatment rate of $23.40 and the City portion of $5.00, which pays for the system operations, maintenance, and improvements. Tukwila sewer rates are no longer sufficient to operate the enterprise fund and stay out of the red. In 2002, the fund dipped into the reserves by $194,000. Moreover the cost to operate has increased each year due to electrical costs, the growth of infrastructure, the aging pipe and pump facilities, and the additional requirements of maintenance of system grease in the CBD. Currently, Tukwila has the lowest residential rate in the immediate area and remains one of the lowest in comparison to all regional agencies in Washington. The following table is a comparison of rates with local agencies: Sewer Jurisdiction Single Family (monthly bill) Tukwila 28.40 Val Vue Sewer District 29.40 Auburn 29.75 Kent 31.27 Renton 36.06 Tukwila ($1.50 increase) 29.90 Tukwila ($2.00 increase) 30.40 RECOMMENDATION Raise the City's sewer rates by $2.00. Note: The fees will now be included in the Public Works Fee Schedule by Resolution, which will allow for them to be more easily updated in the future. attachments SEWER REVENUE - City Portion Only Total Monthly Revenue Forecast Single Family & Multi-Family Total Residential Units = 2,841 Accounts (773 Single Family and 2,068 Multi-Family) INCREASE MONTHLY ADD'L REV/YR @ Existing $5.00 x 2,841 = $14,205.00 @ $1.00 more $6.00 x 2,841 = 917,046.00 9 34,092 @ 91.50 more 96.50 x 2,841 = 918,467.00 $ 51,144 @ 92.50 mere 97.50 x 2,841 = 921,307.50 9 85,230 @ .~3.00 more 98.00 x 2,841 = 922,728.00 9102,276 Commercial/Industrial Annual Sewer Usage 575,000 ccf/yr Monthly Forecast Based on Average 6,400 residential equivalents per month .INCREASE MONTHLY ADD'L REV/YR @ Existing $ I0.00 x 6,400 = $64,000.00 @ 91.00 more 911.00 x 6,400 = 970,400.00 $ 76,800 @ 91.50 more 911.50 x 6,400 = 973,600.00 9115,200 @ 92.50 more 912.50 x 6,400 = 980,000.00 ~192,000 @ 93.00 more 913.00 x 6,400 = 983,200.00 $230,400 NOTE: The sewer fund operated at a $194,000 deficit in 2002. To gain this amount of additional revenue and build up the reserve/replacement balance, a minimtlm of a $2.00 increase is needed in residential and commercial rates (as shown in the shaded portion). The reserve fund is actually the fund balance, which for the beginning of 2003 was $1.67 million. SEWER REVENUE - City Portion Only Total Monthly Revenue Forecast Single Family & Multi-Family Total Residential Units = 2,841 Accounts (775 Single Family and 2,068 Multi-Family) INCREASE MONTHLY ADD'L REV/YR @ Existing $5.00x 2,841 = ~14,205.00 @ $1.00 more $6.00 x 2,841 = ,~17,046.00 $ 34,092 @ .~1.50 more t~6.50 x 2,841 = t~18,467.00 $ 51,144 @ t~2.60 more t~7.50 x 2,841 = ~;21,307.50 8 85,230 @ ~3.00 more $8.00 x 2,841 = $22,728.00 (~102,276 Commercial/Industrial .Annual Sewer Usage 575,000 ccf/yr Monthly Forecast Based on Average 6,400 residential equivalents per month INCREASE MONTHLY ADD'L REV/YR @ Existing ~ 10.00 x 6,400 = $64,000. O0 @ t~1.00 more ~11.00 x 6,400 = $70,400.00 t~ 76,800 @ ,~1.50 more ~11.50 x 6,400 = ,~73,600.00 ,~115,200 @4~2,:O0,more .... ~:t~ 2;00 ~ ~00. ,.~6,800.00 .... ~153,6~00 @ $2.50 more $12.50 x 6,400 = $80,000.00 $192,000 @ $3.00 more $13.00 x 6,400 = t~83,200.00 ~230,400 NOTE: The sewer fund operated at a $194,000 deficit in 2002. To gain this amount of additional revenUe and build up the reserve/replacement balance, a minimum of a $2.00 increase is needed in residential and commercial rates (as shown in the shaded portion). The reserve fund is actually the fund balance, which for the beginning of 2003 was $1.67 million. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON ADOPTING A r~IC~?~.,(j~,~EE SCHEDULE WHEREAS, Tukwila's Public Works Department's use fees have remained largely unchanged over the last tire y¢~; t~:~~!!~9~d WHEREAS, Tukwila's fees are sigalfioantly lower than the average of neighboring jasisdictions; and WHEREAS, the City needs to recoup a greater percentage of the cost of ~.;mj~g~ WHEREAS, adopting the fees in a separate document will allow them to be mom easily updated in the future; NOW, THEREFORE, ~,~r~. ~ fees will be charged according to the following schedule: ~a~0~i~ Vee S~Uea~le Permit Description Cost Type A (Short-Term Nonprofit) $50 Type B (Short-Term Profit) $100 $250 Application Base Fee, plus four components based on construction value Type C l) Plan Review (Disturbance o f City Right-of-Way) 2) Construction Inspection 3) Pavement Mitigation 4) A Grading Plan Review Type D (Long-Term) $100 Type E (Potential Disturbance of City Right-of- ;100 Way) $250 Processing Fee, plus $5,000 cash deposit, Type F (Blanket Permits) withdraw $100/instunee for inspection Fm.ahl~e- Telecnmmunleations $5,000 Adminisirative Fee ~ranehi~e -- Cable $5,000 plus 5% of total revenue Street Vaea*i,~n $1,200 $500 Processing Fee, plus 17% administrative fee, Lateanmer's Agreements plus $500 segregation fee Flood Zone Control $50 Water Meter Installation .75" $ 600 I" 1,100 1.5" 2,400 2" 2,800 3" 4,400 4" 7,800 6" 12,500 Water Meter Deduct $25 Copy of City of Tukwila's Infrastructure Design and Construction Standards $50 Residential Sewer~Ser~ice: Flafrate 0~$7 00 permonth:: ' (SinOa dw;i'i~ ~Ci~ :ig 030'~:~!~:: ,:~: i ~ Residential Sewer ~e~ ~, i .Flat rate $7i00 per m0fith:for eaChdwellingunit : Commercial and Iridustrial.i :~: :~ l~lat rata of $12~0Oper mOnth andin additi0nany: b~a~ t~e rat~ 0f.$i2 00 rets750 Cubic fe~t~ (TMC: 44Ati030N014): '~: ~ : :. i~:: :: ~$~00 ~er mob, th:on ~$wer acanunts more than 30 Utilities Committee August 19, 2003 Present: Pam Linder, Chair; Dave Fenton, Joan Hernandez Jim Morrow, Brian Shelton, Frank Iriart¢, Pat Brodin, Gail Labanara 1. Sewer Utility Rates The rate increase was first brouglft to Co~m'litte~ on August 5 and is now ready to go forwa~t to Council with the ordinance and fee resolution. Jim informed us that thc sewer enterprise fund was in the red last year, and this rate increase will stop the use of the ending fund'~oalance and will cover replacement costs and any contingencies. All agreed that the rate increase is necessary and Para wanted to be assured that we would look at sewer rates on a year!y basis and at the minimum, every two years. Forward to COW. Committee Chair'Approval