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Code of Ordinances Amendment - Title 13 Public Utilities - Fixing Water Rates; Residential, Commercial, Industrial and Other Uses; Fire Sprinkler ServiceCopyrighted A pril 23, 2020 City of Dubuque Action Items # 1. IT E M T I T L E:Code of Ordinance A mendment - Title 13 P ublic Utilities - F ixing Water Rates; Residential, Commercial, I ndustrial and Other Uses; F ire S prinkler S ervice S UM M ARY: O RD I NANC E E stablishing City of Dubuque Code of Ordinances Title 13 P ublic Utilities, Chapter 1, Water Use and Service, Article C Rates, Section 13-1C-1(A ) F ixing Water Rates for Residential, Commercial, I ndustrial, and All Other Uses O RD I NANC E E stablishing the City of Dubuque Code of Ordinances Title 13 P ublic Utilities Chapter 1 Water Use and Service, Article C Rates S ection 13-1C-2 Fixing Water Rates for F ire S prinkler S ervice S UG G E S T E D D I S P O S I T I O N:Suggested Disposition: Receive and F ile; Motion B; Motion A AT TAC H ME N TS: Description Type Staff Memo Staff Memo F Y21 Ordinance W ater Use and Service Rates Ordinance F Y21 Sprinkler Service Ordinance Ordinance F Y20 to F Y21 W ater Rate Comparison Supporting Documentation Suggested Motion Wording Supporting Documentation TO: Michael C. Van Milligen, City Manager FROM: Denise Blakeley Ihrig, Water Department Manager SUBJECT: Establishing Water Rates under City of Dubuque Code of Ordinances Section Title 13 Public Utilities Chapter 1 Article C – Rates, Section 13-1C-1(a) Residential, Commercial, Industrial and other uses; and Section 13-1C-2 Fire Sprinkler Service DATE: April 21, 2020 INRODUCTION The purpose of this memorandum is to provide two ordinances for review and approval. These ordinances establish the FY21 City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Article C, Section 13-1C-1(a) Fixing Water Rates for Residential and Industrial Use and all other uses; and Section 13-1C Fixing Water Rates for Fire Sprinkler Service. DISCUSSION It is recommended, the Water Department’s budget request for FY21, include a 0% (zero percent) rate increase, due to the potential economic hardship placed on the community, and our customers resulting from the novel coronavirus, COVID-19. At such time, as appropriate, the Water Department will revisit the rate structure, along with the City Manager and the Finance Department. Proposed and approved rate structures of comparable Iowa communities with lime softening treatment similar to Dubuque, are compared in the following table. The calculation is based on the average residential usage of 6,000 gallons per month. $29.67 $30.72 $31.87 $32.59 $33.59 $35.01 $35.44 $36.98 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 Council Bluffs Dubuque Ames Cedar Rapids Average w/o Dubuque Iowa City Des Moines West Des Moines Proposed FY21 Water Rates Comparison (6,000 Gallons) 2 Ranked Highest to Lowest City Water Cost for 6,000 Gallons Notes 7 West Des Moines $36.98 Per website, Effective 1/1/2020 6 Des Moines $35.44 5% increase, Effective 4/1/2020 5 Iowa City $35.01 Proposed 5% increase, Effective 7/1/2020 4 Cedar Rapids $32.59 Proposed 6.5% service fee & 6% Step 1 Increase, Eff. 7/1/2020 3 Ames $31.87 Proposed 2% increase, Effective 7/1/2020 2 Dubuque $30.72 Proposed 0% increase, Effective 7/1/2020 1 Council Bluffs $29.67 No Proposed Rate Increase Average $33.18 8.02% Higher than Dubuque Average w/o Dubuque $33.59 9.35% Higher than Dubuque Among comparable cities, Dubuque is proposed to have the second lowest water rates. The highest rate (West Des Moines) is 20.38% higher than Dubuque’s rate, and the average is 8.02% higher than Dubuque RECOMMENDATION It is recommended the attached proposed ordinances be submitted to the City Council for adoption during the FY21 Budget Hearings with an effective date of July 1, 2020. cc: Crenna Brumwell, City Attorney Jenny Larson, Director of Finance and Budget Kevin Firnstahl, City Clerk Randy Gehl, Public Information Officer Rachel Kilburg, Budget Analyst File ORDINANCE NO. 14-20 ESTABLISHING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES, SECTION 13-1C-1(A) FIXING 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 unchanged, and shall 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: Monthly Consumption (in Hundreds of Cubic Feet) First 30 Next 120 Next 350 Next 500 Over 1,000 Monthly Consumption (in Gallons) First 22,440 Next 89,760 Next 261,800 Next 374,000 Over 748,000 Charge per Hundred Cubic Feet $3.85 $3.14 $2.91 $2.57 $2.28 Charge per Gallon $0.00512 $0.00419 $0.00391 $0.00345 $0.00302 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Meter Size Inches 5/8 3/4 1 1 1/2 2 3 4 6 8 Monthly Consumption (In Hundreds of Cubic Feet) 2 5 8 26 46 106 168 368 625 Monthly Consumption (In Gallons) 1,496 3,740 5,984 19,448 34,408 79,288 125,664 275,264 467,500 Minimum Charge $7.66 $19.15 $30.64 $99.57 $165.04 $353.09 $543.63 $1,128.57 $1,837.20 A property owner shall pay a $50.00 disconnect fee for water service that is disconnected by the city for a meter not in service. When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $50.00 disconnect fee. A $50.00 service call fee shall be changed to property owners or tenant account for those service calls that are determined to be related to customer negligence. A $7.00 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2020. Passed, approved and adopted this 23rd day of April, 2020. Roy D'. Buol, Mayor Attest: �:va Kevin,S. Firnstah�f; City Clerk ORDINANCE NO. 15-20 ESTABLISHING THE CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES SECTION 13-1 C-2 FIXING WATER RATES FOR FIRE SPRINKLER SERVICE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-1 C-2 of the City of Dubuque Code of Ordinances is hereby unchanged, and shall read as follows: Section 13-1 C-2: Fire Sprinkler Service. Customers who have fire sprinkler service shall be billed for this service on a monthly basis. The monthly charge shall be as follows: CURRENT MONTHLY NUMBER OF HEADS CHARGES Up to 200 (minimum) $23.47 200-299 $28.17 300-399 $32.81 400-599 . $37.55 600-799 $42.20 800 -999 $46.92 1,000 - 1,199 $51.63 1,200 - 1,399 $56.27 1,400 - 1,599 $60.97 1,600 - 1,799 $65.68 1,800 - 1,999 $70.33 2,000 - 2,199 $75.04 2,200 - 2,399 $79.73 2,400 - 2,599 $84.43 2,600 - 2,799 $89.12 2,800 - 2,900 $93.92 3,000 - 3,499 $98.49 Over 3,500* $4.68 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1 2020. Passed, approved, and adopted this 23rd day of April 20 Attest: 7- Kevir2l=irnstahl, City CI rk Roy D. ® ol, Mayor City of Dubuque Water Utility Rate Comparison FY 2020 to FY2021 Rates based on units of one-hundred cubic feet (748 gallons) FY 20 FY 21 5.00% 0.00% First 30 3.85$ 3.85$ Next 120 3.14$ 3.14$ Next 350 2.91$ 2.91$ Next 500 2.57$ 2.57$ Over 1,000 2.28$ 2.28$ FY 20 FY 21 5.00% 0.00% First 22,440 0.00512$ 0.00512$ Next 89,760 0.00419$ 0.00419$ Next 261,800 0.00391$ 0.00391$ Next 374,000 0.00345$ 0.00345$ Over 748,000 0.00302$ 0.00302$ Rates shall be subject to the following minimum monthly charge according to the size of the meter: Meter Cubic FY 20 FY 21 Size Feet Gallons 5.00% 0.00% 5/8 2 1,496 7.66$ 7.66$ 3/4 5 3,740 19.15$ 19.15$ 1 8 5,984 30.64$ 30.64$ 1 1/2 26 19,448 99.57$ 99.57$ 2 46 34,408 165.04$ 165.04$ 3 106 79,288 353.09$ 353.09$ 4 168 125,664 543.63$ 543.63$ 6 368 275,264 1,128.57$ 1,128.57$ 8 625 467,500 1,837.20$ 1,837.20$ a. For users outside the city limits, an additional charge equal to 50% of the above rates will be made b. A $7.00 minimum monthly charge shall be assessed for meters not in service. Monthly Consumption Monthly Consumption STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 04/29/2020 and for which the charge is 28.19 6 r Subscribed to before me, a Notary Pub 'c in and for Dubuque County, Iowa, this 29th day of April, 2020 Nota ; ' ublic in and for Dubuque CIowa. JANET K, PAPE Commission Number 199969 My Comm. Exp. DEC 11, 2022 Ad text : OFFICIAL PUBLICATION ORDINANCE NO. 14-20 ESTABLISHING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES, SECTION 13-1C-1(A) FIXING 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 13-1C-1(A) of the City of Dubuque Code of Ordinances, is hereby unchanged, and shall 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: Monthly Consumption (in Hundreds of Cubic Feet), Charge per Hundred Cubic Feet First 30, $3.85 Next 120, $3.14 Next 350, $2.91 Next 500, $2.57 Over 1,000, $2.28 Monthly Consumption (in Gallons), Charge per Gallon" First 22,440, $0.00512 Next 89,760, $0.00419 Next 261,800, $0.00391 Next 374,000, $0.00345 Over 748,000, $0.00302 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Meter Size Inches, Monthly Consumption(In Hundreds of Cubic Feet), Monthly Consumption (In Gallons),Minimum Charge 5/8, 2, 1,496, $7.66 3/4, 5, 3,740, $19.15 1, 8, 5,984, $30.64 1 1/2, 26, 19,448, $99.57 2, 46, 34,408, $165.04 3, 106, 79,288, $353.09 4, 168, 125,664, $543.63 6, 368, 275,264, $1,128.57 8, 625, 467,500, $1,837.20 A property owner shall pay a $50.00 disconnect fee for water service that is disconnected by the city for a meter not in service. When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $50.00 disconnect fee. A $50.00 service call fee shall be changed to property owners or tenant account for those service calls that are determined to be related to customer negligence. A $7.00 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2020. Passed, approved and adopted this 23rd day of April, 2020. /s/Roy D. Buol, Mayor Attest: Kevin S. Firnstahl, City Clerk Published officially in the Telegraph Herald newspaper on the 29th day of April 2020. /s/Kevin S. Firnstahl, City Clerk It 4/29 STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 04/29/2020 and for which the charge is 17.48 Subscribed to before me, a Notary Pul9lhc in and for Dubuque County, Iowa, this 29th day of April, 2020 Notary lic in and for Dubuque Conty, Iowa. JANET K. PAPE Commission Number 19S$59 My Comm. Exp. DEC 11, 2022 Ad text : OFFICIAL PUBLICATION ORDINANCE NO. 15-20 ESTABLISHING THE CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES SECTION 13-1C-2 FIXING WATER RATES FOR FIRE SPRINKLER SERVICE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-1C-2 of the City of Dubuque Code of Ordinances is hereby unchanged, and shall read as follows: Section 13-1C-2: Fire Sprinkler Service. Customers who have fire sprinkler service shall be billed for this service on a monthly basis. The monthly charge shall be as follows: CURRENT NUMBER OF HEADS, MONTHLY CHARGES Up to 200 (minimum),$23.47 200-299, $28.17 300-399, $32.81 400-599, $37.55 600-799, $42.20 800 -999, $46.92 1,000 - 1,199, $51.63 1,200 - 1,399, $56.27 1,400 - 1,599, $60.97 1,600 - 1,799, $65.68 1,800 - 1,999, $70.33 2,000 - 2,199, $75.04 2,200 - 2,399, $79.73 2,400 - 2,599, $84.43 2,600 - 2,799, $89.12 2,800 - 2,900, $93.92 3,000 - 3,499, $98.49 Over 3,500*, $4.68 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2020. Passed, approved and adopted this 23rd day of April 2020. /s/Roy D. Buol, Mayor Attest: /s/Kevin Firnstahl, City Clerk Published officially in the Telegraph Herald newspaper on the 29th day of April 2020. /s/Kevin S. Firnstahl, City Clerk It 4/29