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ORD 97-09 RESTRUCTURING UTILITY RATESRevised March 6, 1997 ORDINANCE No. 97 - 09 AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON RESTRUCTURING UTILITY RATES, FEES AND CHARGES; AMENDING SECTIONS 1 3.16.01 5(a), 13.1 6.070 AND 1 3.16.090(c) BOTH THE BAINBRIDGE ISLAND MUNICIPAL CODE AND SECTION E.5 OF ORD- INANCE 82-20, AS SUBSEQUENTLY AMENDED; ADDING A NEW SECTION TO CHAPTER 13.16 OF THE BAINBRIDGE ISLAND MUNICIPAL CODE; AND REPEALING THOSE SECTIONS OF ALL PRIOR ORDINANCES THAT AMEND SECTION E.5 OF ORDINANCE 82-20. 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 including amendment by Ordinances 83-09, 84-25, 86-08, 86-19, 91-13, and 93-39; and WHEREAS, there have been major changes to the City's water and sewer utility since 1982, which changes require structural as well as amount changes to the City's utility rates, charges and fees; and WHEREAS, the City has caused a professional study of water and sewer rates to be jointly conducted by two consulting engineering firms with considerable expertise in water and sewer rate structures in order to determine both an appropriate rate structure and rate levels for the City's water and sewer utilities; and WHEREAS, in addition to timely legal notice, the City has caused to be mailed to each of the City's water and sewer customers notice of a Public Hearing on water and sewer rates to be conducted on January 20, 1997; and WHEREAS, that Public Hearing was conducted and all those who chose to comment were allowed to speak without limitation and all written comments received thereafter have been considered by the Finance Committee of the City Council; 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 Those sections of all prior ordinances which amend Section E.5 of Ordinance 82-20 are repealed. SECTION 2. Section E.5 of Ordinance 82-20 is amended to read as follows: SECTION E. Water and Sewer Rates, Charges and Fees. 5. SERVICE RATES. a. CATEGORIES OF USERS. Category 1 - Single Family Residences. Category 2 - Multiple Dwellings Residences including but not limited to apartment houses, condominiums, multiple residences served by a single meter, and mobile home courts: Each single dwelling unit shall constitute one residential unit for purposes of this rate schedule. Housing units for which each residential unit is served by a separate meter shall be billed as category 1 Category 3 - Commercial. Commercial users including but not limited to retail sales. Each set of 10 (ten) fixtures or portion thereof shall constitute one unit for purposes of this rate schedule. Category 4 - Other. Any users other than those in Categories 1, 2, 3 and 5, and including but not limited to irrigation systems and construction projects. Category 5 - Industrial. Do WATER RATES The monthly rate for all categories of users shall be as follows except as authorized in paragraph 5.f, 5.g or 5.h below: Users in Category 1 (SFR) shall pay a monthly fixed base rate based on size of water meter as follows: Up to 3/4" $11.67 1" 23.11 1 1/2" 42.16 2" 65.03 3" 126.00 4" 194.60 6" 385.15 Plus a charge for consumption on an incremental basis as follows: For the first 500 cubic feet $1.1 6 For the next 700 cubic feet 1.66 For the next 1,800 cubic feet 2.16 For amounts over 3,000 cubit feet 3.16 per 100 cubic feet per 100 cubic feet per 100 cubic feet per 100 cubic feet Users in Category 2 (Multiple Dwellings) shall pay a monthly fixed base rate for each residential unit of: $5.85 Plus a charge for consumption on an incremental basis as follows: For the first 500 cubic feet $1.1 6 For the next 700 cubic feet 1.66 For the next 1,800 cubic feet 2.16 For amounts over 3,000 cubit feet 3.16 per 100 cubic feet per 100 cubic feet per 100 cubic feet per 100 cubic feet Users in Category 3 (Commercial) shall pay a monthly fixed base rate based on size of water meter as follows: Up to 3/4" $19.37 1" 42.34 1 1/2" 8O.63 2" 126.57 3" 249.09 4" 386.93 6" 769.80 Plus a charge for consumption as follows: For water billed in November through June $1.58 For water billed in July through October 1.82 per 100 cubic feet per 100 cubic feet Users in Category 4 (Other), other then irrigation systems or construc- tion projects, shall pay a monthly fixed base rate based on size of water meter as follows: Up to 3/4" $28.20 1" 64.43 11/2" 124.81 2" 197.27 3" 390.49 4" 607.86 6" 1,211.67 Plus a charge for consumption as follows: For water billed in November through June $1.58 For water billed in July through October 1.82 per 100 cubic feet per 100 cubic feet Users in Category 5 (Industrial), shall pay rates as set by individual contract, which contract shall not provide rates less than any of the categories 1 through 4. All users of separate Irrigation systems (defined as water systems primarily designed for the watering of plants and which do not connect directly or indirectly to the City's sewer system) shall pay a monthly base rate based on size of water meter as follows: Plus a Up to 3/4" $5.14 1" 6.76 1 1/2" 9.47 2" 12.72 3" 21.39 4" 31.14 6" 58.23 charge for consumption of: $3.63 per 100 cubic feet Water for construction projects shall be made available to contractors at the option of the city at a location or locations to be specified by the city at a price of $3.63 per 100 cubic feet of water plus 125 % of the direct costs to the city of connection set up and water delivery. Water for single family residential construction at the construction site prior to the final inspection of the property shall be available through the residential meter and piping at a fixed charge of $100.00 per 90 days or portion thereof. c. SEWER RATES Effective April 1, 1997, sewer rates for customers who also contract with the City for provision of water shall be as follows 5.e, 5.f, 5.g, or 5.h: Users in Category 1 (SFR) shall pay a monthly fixed base rate of $15.73 plus $2.60 per 100 cubic feet of water used. Users in Category 2 (Multiple Dwellings) shall pay a monthly fixed base rate of $14.23 plus $2.60 per 100 cubic feet of water used. Users in Category 3 (Commercial) shall pay a monthly fixed base rate of $45.55 plus $2.60 per 100 cubic feet of water used. Users in Category 4 (Other), shall pay a monthly fixed base rate of $45.55 plus $2.60 per 100 cubic feet of water used. Users in Category 5 (Industrial), shall pay rates as set by individual contract, which contract shall not provide rates less than any of the categories 1 through 4. d. SEWER RATES FOR USERS WITHOUT WATER SERVICE Users in Category 1 (SFFI) shall pay a fixed monthly rate of $44.11. Users in Category 3 (Commercial) shall pay a fixed monthly rate of $47.65. e. SUMMER SEWER AVERAGING The sewer billings for the three summer billing months of mid-June through mid-September for all customers in Categories 1 and 2 shall be set at the average of each property's billing for the prior months of mid-December through mid-May. For properties with no billings during the prior months of mid- December through mid-May, the charge shall be based on the current water consumption. REDUCED WATER CHARGES IN SPECIAL CASES Upon application by a utility customer, the City's Finance Director acting together with the City Administrator shall have the discretion to make reasonable and equitable reductions in water accounts on a case-by-case basis in situations where a leak in or other accident to the water service line between the water meter and the structure causes the customer's water consumption to be more than double the average for that customer in the same months in the prior five years. in such cases, a rate adjustment shall be applied to reduce the customer's bill to the average of the consumption for that account for the same month in the past five years plus the City's rate for users of under 500 cubic feet per month applied to the consumption in excess of the five year average. No more than two such adjustments shall be made during any single ownership of the property. g. GEOGRAPHIC AREA COVERED BY WATER RATES The water rates shown in paragraph 5.b above shall apply only to those customers taking service within or connected to the Winslow water system (defined as that water system which provides city water to the area known as "historic Winslow"). Customers of other water systems shall pay rates sufficient to cover the full cost of providing the service, using the same rate structure as that shown in paragraph 5.b, and specified by resolution of the city council as a percentage of the rates in effect within the Winslow water system. RATES FOR MIXED USE CUSTOMERS Customers which combine both commercial and multi-family resi- dential uses and which are not metered separately shall be charged a fixedcharge equal to the sum of the fixed charges for the number of multi-family residential units served plus the commercial fixed for the meter size actually used. The volume charge for mixed use customers is the same as that for commercial customers. The rate for all other Mixed Use customers shall be calculated by adding the appropriate charges for each use and allowing a reduction to the total for any overlap. SECTION 3. The Bainbridge Island Municipal Code 13.16.015(A) shall be amended to read as follows: A. The city shall charge an appropriate fee in an amount established by the city by resolution for the following utility-related services: 1. Notice of turn-off, 2. Seasonal turn-off 3. Restoration of service, 4. Notice of delinquency, 5. Additional notice or collection letter, 6. Bill to person other than property owner, 7. Duplicate bill or delinquency notice, 8. Transfer of ownership or billed person, and 9. New Account service. SECTION 4. A new section shall be added to Chapter 13.16 of the Bainbridge Island Municipal Code entitled "Closing Bills" to read as follows: Once the city has received notice of the pending sale of a property served by the city's water and/or sewer utility, instead of the rates and charges set forth under Section E of Ordinance No. 82-28 as amended, monthly rates and charges for the specified property shall be set on a per diem basis equivalent to the highest monthly charges levied on that property during the immediately preceding twelve months divided by 30. These per diem rates shall either continue until the sale is closed or for sixty days, whichever occurs first. SECTION 5. The Bainbridge Island Municipal Code 13.16.070 shall be amended to read as follows: A. Water and/or sewer service accounts shall be billed monthly on or before the tenth day of the month succeeding the month in which such service is furnished. Water meters shall be read monthly and the billings shall be based upon that reading. All bills are the responsibility of the owner of the property served. Bills may be sent to a person other than the owner at the owner's written request, which request must contain a commitment to pay on demand all amounts not paid by the person billed. B. All charges for water and/or sewer service shall be due and payable on the last day of the month in which the bill was sent, provided that the bill shall not be due less than 20 days from the date of billing. If the whole or any portion of the water and/or sewer charge remains un- paid after the due date, the account shall be delinquent. All delinquent water and/or sewer accounts shall be subject to a monthly penalty charge of 10 percent of the amount of the delinquent service charges. In addition, accounts which are delinquent more than 120 days shall be subject to interest at the rate of 8.0 % per annum on the entire amount of the service charges owing and unpaid. SECTION 6. The Bainbridge Island Municipal Code 13.16.090(C) shall be amended to read as follows: C. All charges for water service shall be a lien upon the premises and shall be enforceable by shutting off water service until the delinquent bill is paid, subject to the conditions set forth in state law. When water service is shut off pursuant to this section, the water shall not be turned on again until the entire amount owed on the account is paid in full together with a turnon charge as established by resolution of the city council. SECTION 7. This Ordinance shall take effect and be in force for utility bills generated on and after May 1, 1997, which date is more than five days after its passage, approval, and publication. PASSED by the City Council this 20th day of March, 1997. APPROVED by the Mayor this 21st day of March, i997. JANET K. WEST, Mayor ATTEST/AUTHENTICATE: SUSAN P. KASPER, APPROVED AS TO FORM: ROD P. KASEGUMA, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: April 1, 1997 ORDINANCE 97 - 09 February 14, 1997 March 20, 1997 March 26, 1997 Revised March 6, 1997