No preview available
HomeMy WebLinkAboutOrdinance 4536 ORDINANCE NO, 4536 AN ORDINANCE AMENDING § 51 .137 OF THE CODE OF FAYETTEVILLE, TO ADJUST SEWER RATES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That § 51 .137 of the Code of Fayetteville is hereby repealed, and Exhibit " A" attached hereto and made a part hereof, is inserted in its stead. ,tYr F p yEr�: PASSED and APPROVED this 30th day of December, 2003. . ;� '•• r� APPROVED: r . . . � 1r � • 4 _ By: —A& oo DAN GOODY, Mayor �6/OM COQ ATTEST: { By: QI.RI� l� IWtA.tN ' SONDRA SMITH, City Clerk • EXHIBIT A 51 .137 Monthly Sewer Rates (A)Monthly sewer rates. All monthly sewer charges shall be calculated from the customer's monthly water usage. The following monthly rates are hereby fixed as rates to be charged for sewer services: ( 1 ) Monthly sewer quantity charge: Table E-1 Monthly Sewer Quantity Charge - Usage Rates Per 1 ,000 Gallons Beginning February 9, 2004 (*Across-the-Board Percentage; **Cost of Service Methodology) Residential* $ 2.61 Commercial/Industrial2.04 Outside city limits** 6.03 Elkins** 5.24 Table E-2 Monthly Sewer Quantity Charge - Usage Rates Per 1 ,000 Gallons After December 31, 2004 Residential* $ 2.84 CommerciaVIndustrial* 2.22 Outside city limits** 6.57 Elkins** 5.71 Table E-3 Monthly Sewer Quantity Charge - Usage Rates Per 1 ,000 Gallons After December 31, 2005 Residential* $ 3. 10 Commercial/Industrial* 2.42 Outside city limits** 7. 16 Elkins** 6.22 1 0 0 EXHIBIT A ( 1 ) Monthly service charge: Table F-1 Monthly Sewer Service Charge Table F-2 Monthly Sewer Service Charge Beginning February 9, 2004 After December 31, 2004 Meter Size Inside City Outside Cityt Meter Size Inside City Outside Cityt 5/8 inch $ 8.72 $ 8.72 5/8 inch $ 9.50 $ 9.50 3/4 inch 10.08 11 .87 3/4 inch 10.99 12.94 1 inch 11 .34 16.28 1 inch 12.36 17.75 1 '/: inch 15.85 28.90 1 %: inch 17.27 31 .50 2inch 21 . 10 41 .51 2 inch 23.00 45.25 3 inch 46.31 97.02 3 inch 50.77 105.75 4 inch 77.51 160.09 4 inch 84.49 174.50 6 inch 149.26 317.78 1 6 inch 163.64 346.38 8 inch 232.26 475.47 1 8 inch 253. 16 518.26 Table F-3 Monthly Sewer Service Charge After December 31, 2005 Meter Size Inside City Outside Cityt 5/8 inch $ 10.36 $ 10.35 3/4 inch 11 .98 14. 10 1 inch 13.47 19.35 1 '/a inch 21 .99 34.33 2 inch 31 .44 49.32 3 inch 73.01 115.27 4 inch 120.26 190.21 6 inch 238.37 377.56 8 inch 356.48 564.90 tCost of Service Methodology required by contract. (B) Determination of charge for domestic customers. In the case of domestic customers, the average monthly water consumption for the preceding months of December, January, and February shall be computed separately for each customer, and a uniform monthly charge for each customer shall be determined by applying the schedule of rates set out in subsection (A) of this section to such average monthly water 2 • EXHIBIT A • consumption. In the case of a domestic user for whom a uniform monthly charge has been established and who moves to a new location the same uniform monthly charge shall apply at the new location. In the case of new domestic users, the schedule of rates shall be applied to monthly water usage until an average monthly water consumption has been established. This methodology shall not apply to multi-family structures containing five (5) or more units in a contiguous building. (C) Determination of charge for commercial and industrial customers. In the case of commercial and industrial customers the monthly sewer charge shall be determined by applying the schedule of rates prescribed in subsection (A) of this section to the monthly water usage of such customers. In the event that a commercial or industrial customer discharging waste into the city's sanitary sewer system produces evidence to the water and sewer superintendent demonstrating that a substantial portion of the total amount of water from all sources used for all purposes does not reach the sanitary sewer which is in excess of the factors used in establishing the rates in subsection (A) of this section, an estimated percentage of total water consumption to be used in computing charges may be established by the water and sewer superintendent. The factors used in establishing said rates are on file in the office of the water and sewer superintendent and are incorporated herein by reference thereto. Any rate so adjusted by the water and sewer superintendent shall be effective for a 12-month period beginning with the billing for the month when rates adjudged hereby go into effect. (D) Extra Strength Surcharge. For all commercial and industrial customers whose wastewater discharge is greater than 300 mg/1 of BODS and/or TSS, the City shall levy an Extra Strength Surcharge for each parameter in accordance with the following unit charges: Beginning After After February 9, 2004 December 31, 2004 December 31, 2005 ( 1 ) Extra Strength BODS --- $0.2246/lb. 0.2449/lb. 0.2669/lb. (2) Extra Strength TSS ----- $0. 1123/lb. 0. 1224/lb. 0. 1334/lb. Extra Strength Surcharges shall be billed monthly and shall be computed on the basis of water meter reading (wastewater discharge volume). (E) Definitions. For the purpose of this division the following definitions shall apply unless the context clearly indicates or requires a different meaning: ( 1 ) Commercial, industrial customer or user. All retail stores, restaurants, office buildings, laundries, and other private business and service establishments which contributes wastewater to the city's wastewater treatment plant. It shall include any nongovernmental, nonresidential user of publicly owned treatment works which is identified in the Standard Industrial Classification 3 • EXHIBIT A • Manual, 1972, Office of Management and Budget, as amended and supplemented, under the following divisions; Division A-Agriculture, Forestry, and Fishing; Division B-Mining; Division D-Manufacturing; Division E-Transportation, Communications, Electric, Gas and Sanitary; and Division I-Services. It also includes social, charitable, religious, and educational activities such as schools, churches, hospitals, nursing homes, penal institutions and similar institutional users; legislative, judicial, administrative, and regulatory activities of federal, state and local governments. (2) Domestic customer or user. Any contributor of wastewater to the city's treatment works whose lot, parcel, or real estate, or building is used for domestic dwelling purposes only. (3) Infiltration/inflow. The total quantity of water other than wastewater from both infiltration and inflow without distinguishing the source from defective pipes, pipe joints, connections, manholes, roofleaders, cellar drains, yard drains, area drains, foundation drains, drains from springs and swampy area, cross connections, catch basins, cooling towers, storm waters, surface runoffs, street wash water, or drainage. (4) Municipality. A city, town, county, parish, district, association, or other public body (including an inter-municipal agency of two or more of the foregoing entities) created under state law having jurisdiction over disposal of sewage, industrial waste or other waste. The definition includes special districts such as water, sewer, sanitary, utility, drainage, transport, or disposal of liquid waste of the general public in a particular geographic area. (5) Operation and maintenance. Those functions that result in expenditures during the useful life of the treatment works for materials, labor, utilities, and other items which are necessary for managing and which such works were designed and constructed. The term "operation and maintenance" includes replacement. (6) Replacement. Expenditures for obtaining and installing equipment, accessories, or appurtenances which are necessary during the useful life of the treatment works to maintain the capacity and performance for which such works were designed and constructed. (7) Treatment works. Any devices and systems for the storage, treatment, recycling, and reclamation of municipal sewage, domestic sewage, or liquid industrial wastes. These include intercepting sewers, outfall sewers, sewage collection systems, pumping, power, and other equipment and their appurtenances; extensions improvement; remodeling, additions, and alterations thereof; elements essential to provide a reliable recycled supply such as standby treatment units and clear well facilities; and any works, 4 • EXHIBIT A • including site acquisition of the land that will be an integral part of the treatment process or is used for ultimate disposal of residues resulting from such treatment (including land for composting sludge, temporary storage of such compost, and land used for the storage of treated wastewater in land treatment systems before land application); or any other method or system for preventing, abating, reducing, storing, treating, separating, or disposing of municipal waste or industrial waste, including waste in combined storm water and sanitary sewer systems. (8) Useful life. The estimated period during which a treatment works will be operated. (9) User charge. That portion of the total wastewater service charge which is levied in a proportional and adequate manner for the cost of operation, maintenance and replacement of the wastewater treatment works. ( 10) Water meter. A water volume measuring and recording device, furnished and installed by the water department of the city. (F) Deposit of revenues; fund. ( 1 ) The revenues from charges collected by the city shall be deposited in a separate non-lapsing fund known as the operation, maintenance, and replacement fund. (2) Fiscal year-end balances in the operation, maintenance and replacement fund shall be used for no other purpose than those designated. Moneys which may be transferred from other sources to meet temporary shortages in the operations, maintenance, and replacement fund shall be returned to their respective accounts upon appropriate adjustment of the user charge rates. The user charge rates shall be adjusted so that the transferred moneys will be returned to their respective accounts within six months of the fiscal year in which moneys were borrowed. (3) Application for review; adjustments to user. (a) Any user who feels that the volume used to determine his bill is incorrect may make written application to the Director of Water and Wastewater requesting a review of his bill. The written request shall, where necessary, show actual or estimated flows and/or strength of his wastewater, including how the measurements were made. (b) A review of the request shall be made by the Water and Wastewater Director and if substantiated, the charges for that user shall be recomputed based on the revised flow and/or strength characteristics. In no case, however, shall allowances or adjustments be made for claims of sewage strengths less than 5 • EXHIBIT A • 300 mg/l suspended solids and 300 mg/l of BODS. (c) Any adjustments will be applicable to the next billing period. (4) Annual review by city; revision of rates; notification of user. (a) The city shall review the charges at least annually and revise the rates as necessary to ensure that adequate revenues are generated to pay the cost of operation, maintenance, and replacement, and that the system continues to provide for the proportional distribution of operation, maintenance, and replacement costs among users and user classes. (b) The city shall notify each user at least annually, in conjunction with a regular bill, of the rates being charged for operation, maintenance and replacement of the treatment works. 6 NAME OF FILE: Ordinance No. 4536 CROSS REFERENCE: Item # Date Document 1 12/30/03 copy of special agenda copy of tentative agenda for sp. mtg. copy of Itr to Steve Tennant copy of Cost of Service Methodology draft ordinance 2 01/07/04 Affidavit of Publication 3 01/09/04 memo to Steve Davis NOTES: Final Agenda 14M4?0Id Jr� �37 Special City Council Meeting Public Hearing S' .a ea-`e5 December 30, 2003 A special meeting of the Fayetteville City Council will be held on December 30, 2003 at 4:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. A. CONSENT: B. OLD BUSINESS: A Public Hearing concerning the adjustment of Sewer Rates 1 . Amend § 51.137 Monthly Sewer Rates: An ordinance amending § 51 . 137 of the Code of Fayetteville, to adjust sewer rates. This Ordinance was left on the first reading at the December 16, 2003 City Council meeting. C. NEW BUSINESS: 0 • Tentative Agenda Special City Council Meeting Public Hearing December 30, 2003 A special meeting of the Fayetteville City Council will be held on December 30, 2003 at 4:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. A. CONSENT: B. OLD BUSINESS : A Public Hearing concerning the adjustment of Sewer Rates } 1 . Amend § 51 . 137 Monthly Sewer Rates : An ordinance amending § 51 . 137 of the Code of Fayetteville, to adjust sewer rates. This Ordinance was left on the first reading at the December 16, 2003 City Council meeting. C. NEW BUSINESS: FAYETT?MLLE wE 2� . �oNQ2A THE CITY OF FAYETTEVILLE, ARKANSAS November 19, 2003 Mr. Steve Tennant, City Attorney City of Farmington P.O. Box 150 Farmington, AR 72730 Dear Steve, As agreed, enclosed is the Cost of Service Methodology followed by Black and Veatch for the City of Fayetteville Water and Sewer rate study. Please let me know if you have any questions. Sincerely, Stephen Davis Finance and Internal Services Director cc: Don Marr, Fayetteville City Council Shirley Lucas, Fayetteville City Council Lioneld Jordan, Fayetteville City Council Kyle Cook, Fayetteville City Council Bob Davis, Fayetteville City Council Robert Reynolds, Fayetteville City Council Robert Rhoads, Fayetteville City Council Brenda Thiel, Fayetteville City Council 113WESTMOUNTAIN 72701 479521-7700 FAX 479-575-9257 J Fayetteville, Arkansas Cost of Service Methodology • Forecast number of accounts by class of customer based on historical growth trends and planned changes. • Determine usage per account by class of customer based on historical information, recognizing climatological patterns. • Forecast sales volumes by class of customer by application of usage per account to forecast number of accounts. • Distribute number of accounts by meter size and distribute sales volumes by volume blocks based on analysis of bills rendered during a 12 month period. • Forecast revenues under existing rates by application of existing rate schedule to customer and sales volumes. • Forecast revenues from miscellaneous sources such as interest, service initiation fees, late payment penalties, etc. • Forecast operation and maintenance expenses based on historical trends, budgets, and known or anticipated changes in operations, recognizing inflationary allowances. • Forecast routine annual capital additions and replacements based on historical trends and budgets. • Incorporate forecast revenues under existing rates and forecast revenue requirements into a pro forma financing plan to determine the timing and magnitude of future revenue increases and the timing and magnitude of future debt issues required to fund major capital improvements. • Verify that bond indenture requirements are met. • Determine the cost of service to be met through sales revenues, recognizing miscellaneous revenue sources and changes in funds on hand. Designate cost of service elements as operating expense or capital cost, as applicable. • Allocate cost of service to functional cost components. Water utility cost components include base cost (meeting average load conditions), extra capacity cost (meeting demands in excess of average) which are subdivided into maximum day and maximum hour demand, meter and billing related cost, and fire protection cost. Maximum day and maximum hour demands are based on historical system pumpage records. Sewer system cost components include sanitary volume, infiltration/inflow, strength (biological oxygen demand and suspended solids), and meter and billing related cost. • Allocate net plant investment to functional cost components based on the function of the facilities. • Allocate depreciation expense to functional cost components based on allocation of net plant investment. • Allocate operation and maintenance expense to functional cost components based upon the type of operating expense. • Determine units of service for each customer class based upon their respective requirements for each type of service. • Determine unit cost of service for each functional cost component by dividing the total cost of service for each cost component by the total units of service for each respective cost component.