ITEM 3.4 Base Rate/Water and Sewer0tsTe� o
MINNESOTA CDP
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Adam Flaherty, Finance Director
May 9, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Johnson
3.4
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council authorize the Utility Billing staff to charge all residential
customers the same base rate for Water and Sewer, no matter the size of meter, unless the meter size is
specifically requested by the account holder.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
During 2015, there were some modifications to the building code in regards to fire suppression systems.
With those modifications, some multiple -family dwelling units now require sprinkler systems to be
installed when constructed. In order to meet the water flow requirements of these sprinkler systems,
many builders now have to install 1" water meters in these homes, instead of the standard 5/8" water
meter.
In the City's current rate structure, the difference for the monthly base rate between the two meter
sizes is $26.51 combined for both Water and Sewer. The demand on the utility system from these
accounts is no different than a routine residential account, and review of their water usage has verified
this.
Utility Billing staff has already received calls of complaint regarding the monthly charges incurred with
larger meters. There are currently six utility customers in this situation, however given the newer code
requirement; it will be present going forward with the construction of certain multiple family dwellings.
Staff's recommendation is to charge all residential customers the same base rate, regardless of meter
size. This would be $8.62 for Water and $8.85 for Sewer. This change would be made prospectively, and
no change to the existing ordinance and resolution would be necessary.
This exception is only to accommodate the situation created by building code requirements. If an
account holder specifically requests a larger meter, they will be responsible for the higher monthly
charges, of which there are a number of accounts.
SUPPORTING DOCUMENTS: ATTACHED NONE
• Resolution 2016-17: Establishing Water & Sanitary Sewer utility rates for 2016.
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
-Motion to authorize the Utility Billing staff to charge all residential customers the same base rate for
Water and Sewer, no matter the size of meter, unless the meter size is specifically requested by the
account holder.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF AIMNESOTA
RESOLUTION NO: 2016-17
ESTABLISHING WATER & SANITARY SEWER
UTILITY RATES FOR 2016
WHEREAS, Otsego City Code Chapter 7, Section 2 outlines that in order to pay for the costs associated
with Water and Sanitary Sewer utility systems, that a just and equitable charge will be imposed upon users of
those systems; and
WHEREAS, the Otsego City Council has identified and reviewed the operating and capital requirements of
the Water and Sanitary Sewer utility systems.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSE GO,
AI NNESOTA:
1. That the following rates, fees and charged be imposed on users of the Water utility system:
a. Base Charge (All Users)
j 2016 Base
Meter Size Charge
5/8"
$
_..8.62
3/4"
$
8.62
1.00"
$
26.27
1.50"
$
52.53
2.00"
$
78.80
3.00"
$
157.59
4.00" 1
$
393.98
b. Usage Rates (Per 1,000 Gallons of Consumption)
Customer
Consumption
; Rate j
Residential & City Owned
0-10,000 Gallons
$ 1.62
Residential & City Owned
10,000-+- Gallons
$ 1.72
Commercial, Industrial & Institutional
0 - 50,000 Gallons
$ 1.62
Commercial, Industrial & Institutional
50,000+ Gallons
Inigation & Bulk Water
All 1
$ 1.72
r
c. Bulls Water
In order to access bulls water from the system, a meter rental from the City is required.
There is a $200.00 deposit required for that meter. The rental fee for that meter is a
minimum of $50.00, which includes the first month, with each additional month being
charged at $50.00,
The consumption tracked by the meter will be billed at the rates identified in paragraph
1(b) of this resolution. The local sales tax rate of 6.875% will also apply to the entire
bulls water rental and consumption charge incurred,
2. That the following rates, fees and charged be imposed on users of the Sanitary Sewer utility system:
a. Base Charge (All Users)
'2016Base i
MP+Pr.qi'Le Charge
5/8"
$
8.85
3/4"
$
8.85
1.00"
$
17.71
1.50"
$
44.28
2.00"
$
88.56
3.00"
$
177.11
4.00"
$
442.79
b. Usage Rates (Per 1,000 Gallons of Average December -February Water Usage)
2016
Customer Type Consumption Rate
All Us ers All $ 5.49
c. Minimum Charges
These charges come into effect for new accounts where there is less than three months
of usage history to base the average off of. This minimum monthly charge is $35.99.
3. That the rates, fees and charges outlined in this resolution shall be effective for all billings issued on
or after March 1, 2016.
ADOPTED by the Otsego City Council this 8th day of Febraury, 2016.
2
ATTEST:
CITY OF OTSEGO
a MM
Jessica Stockam Mayor
Tami LoTf, City Clerk
MOTION made by Council Member Heidner and SECONDED by Council Member
Schroeder .
INFAVOR: Stockamp, Heidner, Schroeder, Warehime
OPPOSED: None
C