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Water and Sewer Billing Units_Water Meter Change Out ProjectMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Water and Sewer Billing Units DATE: January 25, 2010 Dubuque bilid rancaI 2007 As part of the Water Meter Change Out Project, the City will begin monthly billing of the water and sewer consumption in gallons versus the current 100 cubic feet. Switching billing units provides more information to our customers about their usage patterns. Finance Director Ken TeKippe recommends City Council approval of revised ordinances relative to billing for water and sewer. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Ken TeKippe, Finance Director chael C. Van Milligen Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Ken TeKippe, Finance Director SUBJECT: Water and Sewer Billing Units DATE: January 21, 2010 KT /jg Enclosures Dubuque bletri A1- America CM" I 2007 As part of the Water Meter Change Out Project, the City will begin monthly billing of water and sewer consumption in gallons versus the current 100 cubic feet. Switching billing units from 100 cubic feet to gallons provides more information to our customers about their usage patterns. Example: the monthly billing statement will replace 3 units with 2,244 gallons. During discussions with the vendor for our project, Northern Water Works Supply, it was noted that billing in gallons is the most prevalent method used by utilities with many utilities switching to gallons, particularly at the time of a change out project. During the entire RFP process, it has been anticipated that a switch in billing units would be forthcoming. The billing effect of changing from 100 cubic feet to gallons would have an insignificant net change in revenue. Preliminary analysis anticipates a total annual revenue reduction of $1,200 for water and sewer combined. It is recommended that the change be effective immediately to avoid customers receiving bills in 100 cubic feet and gallons when their new meters are installed. Our Information Services staff will work with Utility Billing to convert the billing to gallons. City Council approval of the revised ordinances relative to billing for water and sewer is required. ORDINANCE NO. 5-10 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES, SECTION 13- 1C -1(A) ESTABLISHING WATER RATES FOR RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND ALL OTHER USES NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13 -1 C -1(A) of the City of Dubuque Code of Ordinances is hereby amended to read as follows: Section 13- 1C -1A: Residential, Commercial, Industrial and All Other Uses. A. Rates Established: The rates to be charged for water for residential, commercial, industrial and all other uses and purposes by any person, firm or corporation within the city shall be based on units of one hundred cubic feet (748 gallons) or per gallon as follows: Meter Size Inches 5/8 3/4 1 1 1/2 2 3 4 6 8 Monthly Consumption (in Hundreds of Cubic Feet) First 30 Next 120 Next 350 Next 500 Next 1,000 Monthly Consumption (in Gallons) First 22,440 Next 89,760 Next 261,800 Next 374,000 Next 748,000 ORDINANCE NO. 5 -10 Monthly Consumption (In Hundreds of Cubic Feet) 2 5 8 26 46 106 168 368 625 Charge per Hundred Cubic Feet $2.12 $1.73 $1.61 $1.42 $1.25 Charge per Gallon 0.00283 0.00231 0.00215 0.00190 0.00167 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Monthly Consumption (In Gallons) 1,496 3,740 5,984 19,448 34,408 79,288 125,664 275,264 467,500 Minimum Charge $ 4.24 $ 10.61 $ 16.97 $ 55.17 $ 91.34 $ 195.16 $ 300.22 $ 621.58 $1,011.36 Attest: A property owner shall pay a $30.00 disconnect fee for water service that is disconnected by city staff (meter not in service). When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $30.00 disconnect fee. A minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect upon publication. Passed, approved and adopted this 1 day of February 2010. Jeanne Schneider, City Clerk Roy Buol, Mayor Meter Size Inches 5/8 3/4 1 1 1/2 2 3 4 6 8 EFFECT OF AMENDMENT Section 13-1C-1A: Residential, Commercial, Industrial and All Other Uses. A. Rates Established: The rates to be charged for water for residential, commercial, industrial and all other uses and purposes by any person, firm or corporation within the city shall be based on units of one hundred cubic feet (748 gallons) or per gallon as follows: Monthly Consumption (in Hundreds of Cubic Feet) First 30 Next 120 Next 350 Next 500 Next 1,000 Monthly Consumption (in Gallons) First 22,440 Next 89,760 Next 261,800 Next 374,000 Next 748,000 Monthly Consumption (In Hundreds of Cubic Feet) 2 5 8 26 46 106 168 368 625 Charge per Hundred Cubic Feet $2.12 $1.73 $1.61 $1.42 $1.25 Charge per Gallon 0.00283 0.00231 0.00215 0.00190 0.00167 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Monthly Consumption (In Gallons) 1,496 3,740 5,984 19,448 34,408 79,288 125,664 275,264 467,500 Minimum Charge $ 4.24 $ 10.61 $ 16.97 $ 55.17 $ 91.34 $ 195.16 $ 300.22 $ 621.58 $1,011.36 A property owner shall pay a $30.00 disconnect fee for water service that is disconnected by city staff (meter not in service). When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $30.00 disconnect fee. A $5.00 minimum monthly charge shall be assessed for meters not in service. ORDINANCE NO. 6-10 Section 13 -2C -3: Rates Established: C. Service Charge: AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 13- 2C -3(B) ESTABLISHING THE SCHEDULE OF RATES FOR RESIDENTIAL AND COMMERCIAL SEWER USERS BY INCREASING THE RATES; AND AMENDING SECTION 13- 2C- 3(C)(7) ESTABLISHING THE MINIMUM SERVICE CHARGE BY INCREASING THE MINIMUM SERVICE CHARGE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13- 2C -3(B) of the City of Dubuque Code of Ordinances is amended to read as follows: B. Schedule Of Rates: Rates per each one hundred (100) cubic feet Rate per each gallon $2.37 $0.00317 Section 2. Section 13- 2C- 3(C)(7) of the City of Dubuque Code of Ordinances is amended to read as follows: 7. Where the quantity of water consumed is such that the minimum service is charged, the minimum sewer service charge, according to the size of the meter, shall be as follows: Meter Size Minimum Allowance Allowance (inches) Charge (cubic feet) (gallons) 5/8 $ 4.75 200 1,496 3/4 $ 11.84 500 3,740 1 or larger $ 18.96 800 5,984 Section 3. This Ordinance shall take effect upon publication. Passed, approved and adopted this 1 day of February 2010. Attest: L Roy,;+ Buol, Mayor Jeanne Schneider, City Clerk Section 13 -2C -3: Rates Established: C. Service Charge: EFFECT OF AMENDMENT B. Schedule Of Rates: Rates per each one hundred (100) cubic feet Rate per each gallon $2.37 $0.00317 7. Where the quantity of water consumed is such that the minimum service is charged, the minimum sewer service charge, according to the size of the meter, shall be as follows: Meter Size Minimum Allowance Allowance (inches) Charge (cubic feet) (gallons) 5/8 $ 4.75 200 1,496 3/4 $ 11.84 500 3,740 1 or larger $ 18.96 800 5,984