HomeMy WebLinkAboutCOW 2003-08-25 Item 3C.2 - Ordinance - Amend Permit & Inspection Fees and Rates for Sewer Service & Penalty ChargesCAS Number: 03-112
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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.
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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
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON; AMENDING TMC CHAPTER 14.12, RELATING TO
PERMIT AND INSPECTION FEES; AMENDING TMC CHAPTER 14.16,
RELATING TO THE RATES FOR SEWER SERVICE AND PENALTY
CHARGES; REPEALING ORDINANCE NOS. 936 AND 1776; PROVIDING
FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council desires to have in place an equitable and adequate rate
structure to finance the operation and maintenance of the sewer utility; and
WHEREAS, the City Council also desires to establish the appropriate fees for work
requiring a permit and inspection; and
WHEREAS, the City needs additional revenues to adequately fund the sewer utility
and capital improvements;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Ordinance 342, as codified at TMC 14.12.110, "New Permit Fee is
hereby amended to read as follows:
In case work shall not be done or completed within the time specified in any permit
and no extension thereof has been granted, a new permit shall be
in.^ptction fcc of $2.00 ;hall be charged. applied for and all applicable fees will be charged.
Section 2. Ordinance 342, as codified at TMC 14.12.200, "Inspection Fee is hereby
amended to read as follows:
The charge for the first two inspections per connection to the City sewage-eeileetien
cyctcm shall be $20.00 sewer system is included in the initial permit fee. h inspeetien
For each
additional inspection after the second, a fee will be charged in accordance with the fee schedule to
be adopted by motion or resolution of the Tukwila City Council.
Section 3. Ordinance 1714, as codified at TMC 14.16.030, is hereby amended to read
as follows:
14.16.030 Schedule of Charges
Rates and charges for sewer service furnished and available for use shall be paid by
the owner of the property and shall be as follows:
1. Residential Sewage Service (single dwelling unit) A flat monthly rate ef$5.00 per
menth for each single- family residence shall be charged in accordance with the fee schedule
to be adopted by motion or resolution of the Tukwila City Council. 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
Sewer Rates 8/21103
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 $26 $32,000 per year, shall pay a rate
equal to 50% of sewer service charges. 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.
2. Residential Sewage Service (multiple dwelling unit, permanent type) A flat
monthly rate of $5.00 per month for each dwelling unit shall be charged in accordance
with the fee schedule to be adopted by motion or resolution of the Tukwila City Council.
3. School Sewage Service The rate shall be the commercial /industrial sewage
rate.
4. Commercial and Industrial Sewage Service Each account will be charged a flat
monthly rate of $10.00 in accordance with the fee schedule to be adopted by motion or resolution
of the Tukwila City Council. In addition, the charge for sewage service on premises using
more than 750 cubic feet of water per month shall be at the rate per 750 cubic feet, in
accordance with the fee schedule to be adopted by motion or resolution of the Tukwila City
Council of $10.00.
5. Penalty charge There shall be a penalty charge ef$2.00 each month on sewer
accounts more than 30 days in arrears in accordance with the fee schedule to be adopted by
motion or resolution of the Tukwila City Council.
Section 4. Ordinance 1714, as codified at TMC 14.16.065, 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 $23.40 (effective 1/1/02) 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
$26 $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
indude 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 Nos. 936 and 1776 are hereby repealed
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
Sewer Rates 8/21/03
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
2003.
ATTEST /AUTHENTICATED:
Jane E. Cantu, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Sewer Rates 8/21/03
Steven M. Mullet, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published.
Effective Date:
Ordinance Number:
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