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ORD 97-26 UTILITY RATES FEES & CHARGESRevised November 4, 1997 ORDINANCE No. 97 - 26 AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON RELATING TO UTILITY RATES, FEES AND CHARGES; AND AMENDING SECTION E.1 OF ORDINANCE 82-20, AS SUBSEQUENTLY AMENDED. WHEREAS, a structure for establishing water and sewer rates, charges and fees was put into place by Ordinance 82-20; and WHEREAS, Section E of Ordinance 82-20, which specifies those rates, charges and fees has been subsequently amended on various occasions by other ordinances; and WHEREAS, in response to citizen requests, the City Council has engaged to consulting firms of Financial Consulting Solutions Group, Inc. and RH2 Engineering to study the City's water and sewer rate structure and recommend improvements; and WHEREAS, as a result of that study, the City has restructured its water and and sewer rates through Ordinance 97-09 and now wishes to restructure its water and sewer participation fees to be based on the size of the water meter installed and to reflect the new rate structure; now therefore, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Those sections of all prior ordinances which amend Section E.1 of Ordinance 82-20 are repealed. SECTION 2. Section E.1 of Ordinance 82-20 is amended to read as follows: SECTION E. Water and Sewer Rates, Charges and Fees. 1. SYSTEM PARTICIPATION FEES a. WATER (1). RESIDENTIAL- SINGLE Meter Size of 5/8" or FAMILY 3/4" 1/2" 2" 3" 4" 6" $2,754.00 6,885.00 13,770.0O 22,033.00 44,066.00 68,854.00 137,708.00 (2). RESIDENTIAL- MULTI-FAMILY Meter Size of 5/8" or 3/4" 1 1/2" 2" 3" 4" 6" $4 515.00 11 287.00 22 575.00 36 120.00 72 241.00 112 876.00 225,753.00 (3). COMMERCIAL OR OTHER Meter Size of 5/8" or 3/4" 1 1/2" 2" 3" 4" 6" $5 14 28 45 91 142 284 692.00 231.00 462.OO 539.00 ,O79.OO 311.00 623.00 (4). IRRIGATION Meter Size of 5/8" or 3/4" 1 1/2" 2" 3" 4" 6" $4,498.OO 11,245.00 22,490.0O 35,984.OO 71,968.OO 112,450.00 224,901.00 b. SEWER (1). (2). (3). RESIDENTIAL - SINGLE FAMILY RESIDENTIAL- MULTI-FAMILY COMMERCIAL OR OTHER $3,168.00 (aflat fee) 2,091.00 Per living unit 3,168.00 Per ERU Where "ERU" is defined as each set of 20 fixture units as shown on the schedule of fixture units affixed to the copy of this ordinance on file with the City Clerk. SECTION 3. Customers presently served by City water or sewer who wish to change from one class of service to another or who wish to increase the size of water meter or to add a meter shall pay the fees specified by this ordiance, against which fees they shall receive a credit in the amount of participation fees previously paid to the City for the same service on the property in question. SECTION 4. These fees do not apply to customers applying to connect to the Rockaway Beach water system. Persons applying to connect to the Rockaway Beach water system shall pay a charge as specified in Section 5 of Ordinance 96-10 in lieu of both assessment and system participation fee. SECTION 5. This Ordinance shall take effect and be in force on and after January 1, 1998. PASSED by the City Council this 6th day of November, 1997. APPROVED by the Mayor this 7th day of November, 1997. ANDREW W. MARON, Mayor Pro-Tem ATT EST/AUT H E NTICATE: SPER, City Clerk APPROVED AS TO FORM: ROD P. KASEGUMA, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: November 12, 1997 POSTED: November 12, 1997 EFFECTIVE DATE: ORDINANCE No. 97 - 26 July 29,. 1997 November 6, 1997 CITY OF BAINBRIDGE ISLAND MEMORANDUM DATE: November 4, 1997 TO: FROM: SUBJECT: Mayor Andrew W. Maron,~nd City Council Ralph W. Eells':\~ Water & Sewer Participation Fees On October 15, I sent you a memo with a proposed revision to our water and sewer participation fees. That revision included a hefty increase in participation fees for both water and sewer. In both cases, part of the increase was determined by the capacity of our existing system to serve new customers without adding capital improvements first. In the case of the sewer system, the determining factor was the infill and infiltra- tion into the system. That infill and infiltration keep us from providing the capacity that our sewage treatment plant was designed for. That problem will not disappear until we can locate and correct the infill and infiltration. In the meanwhile, we do not have excess capacity. A somewhat different problem exists with the water system. There, the determining factor in defining our capacity is fire flow. Complicating that determination are both the fact that we have wide fluctuations in fire flow in different parts of the Winslow water system and also that the method used by R.W. Beck to test fire flow did not measure the duration of the flow. This later is particularly important because the fire flow required by the Uniform Fire Code has a minimum duration component (one to four hours, as well as a volume component) and the City has comparatively little storage capacity. At the request of the Finance Committee, I have reviewed the differential fire flow' question and found that in many areas of Winslow we probably do have adequate fire flow to support single family residences (but not multi-family or commercial). As a result, I took another look at our estimated capacity (population of 7,200 divided by 2.1 persons per average household equals 3,429 residential equivalent units). Excluding the area within our "service area" for which no water mains yet exist and those areas, such as the Wing Point Golf Course, where residential construction is extremely unlikely, it appears that single family residential con- struction could meet fire flow requirements (the 1,000 gallons per minute level) in perhaps 70 % of our service area. Erring on the liberal side (that is, one which 625 Winslow Way East · Bainbridge Island, WA 98110 Phone 206-842-7633 · Fax 206-842-5741 To: From: Date: Mayor Andrew W. Maron and City Council Ralph W. EelIs November 4, 1997 Page 2 produces lower rates), I "adjusted" that figure to 80 % (which is clearly higher than the true number). Based on our nominal capacity of 3,429 ERU and backing out the figures for multi-family, commercial & other, and irrigation leaves a potential of 1,934 single family residential units. Our present (May, 1997) single family count is 1,341.5 ERU/meter equivalents or about 69.4 % of the potential. Adjusting the unused residential capacity for 80 % of the difference between actual and potential leaves an adjusted single family residential capacity of 1,816 ERU. I have adjusted the proposed single family water participation fees accordingly (the change results in a decrease for a typical single family home from the originally proposed water participation fee of $3,727.00 to one of $2,754.00). I believe that this correction is both fair and also is supported by actual conditions. Please consider the revised structure for approval. CC: City Administrator Lynn Nordby City Attorney Rod P. Kaseguma WATER PARTICIPATION FEES - - FCSG MODEL CUSTOMER TOTALS BY TYPE TYPE OF UNIT Single Family Residential Multi- Family Residential Commercial & Other Irrigation TOTAL Multi- Family Units EXISTING (5/97) SYSTEM METER EQUIV. CAPACITY 1,341.5 1,816 443.5 444 496.5 497 108.0 108 2,389.5 2,863.5 1,017 1,441 (see notes explaining capacity) ALLOCATION OF CHARGE TO CATEGORIES Original Cost of Plant Plus: Applicable Interest Less: Credit for O/S Debt (Net) Plus: Cost of Future Facilities Total Charge Basis $6,806,815 3,097,777 (746,997) 1,157,150 $10,314,745 Cost Allocation to Functional Categories: Customer Commodity Base Peak Fire Total Charge Basis Functional Cost Allocation: SFR Multi Customer 82.50% 4.60% Commodity 51.48% 21.51% Base 50.31% 24.31% Peak 57.34% 7.26% Fire 39.89% 25.27% (As of December 31, 1996) (As of December 31, 1996) (1996- 97 Projects only) $0 0 3,164,908 3,185,537 3,964,300 $10,314,745 Comm'l / Other 10.90% 23.44% 23.80% 21.72% 34.84% 0.00% 0.00% 30.68% 30.88% 38.43% 100.00% Irrigation 2.OO% 3.57% 1.58% 13.68% O.OO% 04-Nov-97 WATER PARTICIPATION FEES - - FCSG MODEL MAXIMUM WATER PARTICIPATION FEE BASED ON CAPACITY ANALYSIS (as of MAY, 1997) ParticipationFee Basis by Functional Category& Customer Class: SFR Multi Comm'l / Other Irrigation Customer $0 $0 $0 $0 Commodity 0 0 0 0 Base 1,592,265 769,389 753,248 50,006 Peak 1,826,587 231,270 691,899 435,781 Fire 1,581,359 1,001,779 1,381,162 0 TOTAL: $5,000,211 $2,002,438 $2,826,309 $485,787 Calculation of ParticipationFee per Meter Equivalent: SFR Multi Comm'l / Other Irrigation Customer $0.00 $0.00 $0.00 $0.00 Commodity 0.00 0.00 0.00 0.00 Base 877.04 1,734.81 1,517.12 463.01 Peak 1,006.11 521.47 1,393.55 4,035.01 Fir e 871.03 2,258.80 2, 781.80 0.00 Total per ME: $2,754.18 $4,515.08 $5,692.47 $4,498.03 Calculation of ParticipationFee per Meter Equivalent: Meter Size: SFR Multi 5/8" to 3/4" $2,754.18 $4,515.08 1" 6,885.45 11,287.70 1 1/2" 13,770.89 22,575.40 2" 22,033.43 36,120.64 3" 44,066.86 72,241.27 4" 68,854.47 112,876.99 6" 137,708.93 225,753.97 Comm'l / Other $5,692.47 14,231.16 28,462.33 45,539.72 91,079.44 142,311.63 284,623.25 Irrigation $4,498.03 11,245.07 22,490.14 35,984.22 71,968.45 112,450.70 224,901.39 04-Nov-97