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Code of Ordinances Amendment - Title 13 Establishing Sewer RatesCopyrighted A pril 23, 2020 City of Dubuque Action Items # 2. IT E M T I T L E:Code of Ordinances A mendment - Title 13 E stablishing Sewer Rates S UM M ARY: O RD I NANC E City of Dubuque Code of Ordinances Title 13 P ublic Utilities, Chapter 2 S ewers and S ewage Disposal, Article C Rates, Section 13-2C-32 Rates Established for Fiscal Year 2021 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 Ordinance Ordinance Suggested Motion Wording Supporting Documentation Service People Integrity Responsibility Innovation Teamwork TO: Michael C. Van Milligen, City Manager FROM: William J. O’Brien, W&RRC Manager RE: Establishing Sewer Rates under City of Dubuque Code of Ordinances Title 13 Public Utilities, Chapter 2, Article C, Sections 13-2C-3(B) and 13- 2C-3(C)(7). DATE: April 22, 2020 INTRODUCTION: The purpose of this memorandum is to provide an ordinance for review and approval. This ordinance establishes the FY2021 City of Dubuque Code or Ordinances Title 13 Public Utilities Chapter 2 Article C, Sections 13-2C-3(B) and 13-2C-3(C)(7) fixing Sewer Rates for all contributors whose property lies within the corporate limits of the City, except as otherwise provided in this article. DISCUSSION: I recommend the Water & Resource Recovery Center FY2021 budget request include a 0% (zero percent) sewer rate increase due to the potential economic hardship placed on our community and customers as a result of COVID-19. The following graph and table compare the proposed and approved FY2021 (FY20 rate used for Sioux City) sewer rates of the 11 cities in Iowa with a population over 50,000. The calculation is based on the average residential water usage of 6,000 gallons per month. Service People Integrity Responsibility Innovation Teamwork Ranked Highest to Lowest City Sewer Cost for 6,000 Gallons Notes 11 Ankeny $61.66 No Proposed Increase for FY21 10 Davenport $60.33 Proposed 7% Increase, Effective 7/1/2020 9 Des Moines $50.66 Proposed 3% Increase, Effective 7/1/2020 8 Dubuque $42.24 Proposed 0% Increase, Effective 7/1/2020 7 West Des Moines $40.88 Base rate/1000 gal. Increasing $0.15, Availability Charge increasing 2.5%, Effective 7/1/2020 6 Sioux City (FY20) $36.74 Will Propose increase for FY21, % of increase has not been determined 5 Iowa City $36.65 No Proposed Increase for FY21 4 Ames $36.17 Proposed 5% Increase, Effective 7/1/2020 3 Cedar Rapids $30.96 Proposed 6.5% Increase, Effective 7/1/2020 2 Waterloo $29.82 Proposed 5% Increase, Effective 7/1/2020 1 Council Bluffs $22.94 No Proposed Increase for FY21 Average Cost/6,000 Gallons $40.82 3.36% lower than Dubuque Average Cost/6,000 Gallons w/o Dubuque $40.68 3.69% lower than Dubuque The highest sewer rate (Ankeny) is 45.98% higher than Dubuque’s rate, and the average is 3.36% lower than Dubuque. The City of Cedar Rapids’ 5-year capital improvement plan, for water pollution control and sanitary sewer projects, is estimated at $111.9 million. An additional $133 million in water pollution control improvement projects is not included in the 5-year plan, as funding these costs would require alternative funding sources or large annual rate increases. Staff will be reviewing options to fund these additional expenses. The City of Waterloo will likely make $80 million in sanitary sewer collection system and wastewater treatment facility improvements over the next few years. Significant rate increases will be required to fund these improvements. The City of Council Bluffs is currently performing a rate study to ensure rates are sufficient to cover costs. The current 5-year capital improvement plan for sanitary sewer collection system and wastewater treatment facility improvements estimates over $17 million in improvements. Service People Integrity Responsibility Innovation Teamwork RECOMMENDATION: I recommend that you approve the proposed ordinance changes and submit them to the City Council for approval at their April 23, 2020 budget hearing. Cc: Crenna Brumwell, City Attorney Jennifer Larson, Director of Finance & Budget Kevin Firnstahl, City Clerk Randy Gehl, Public Information Officer Rachel Kilburg, Budget Analyst Attachments: Sewer Rates Ordinance ORDINANCE NO. 16-20 CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13- 2C-3 RATES ESTABLISHED FOR FISCAL YEAR 2021 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-2C-3 of the City of Dubuque Code of Ordinances reads as follows: 13-2C-3: RATES ESTABLISHED: Contributors whose property lies within the corporate limits of the city, except as otherwise provided in this article, shall pay to the city at the same time payment for water services is made, a sewer service charge computed on water consumption on the following rates: B. Schedule Of Rates: Rate per each 100 cubic feet $5.27 Rate per each gallon 0.00704 C. Service Charge: 7. Where the quantity of water consumed is such that the minimum of service is charged, the minimum sewer service charge, according to the size of the meter, shall be as follows: Meter Size (Inches) Minimum Charge Allowance (Cubic Feet) Allowance (Gallons) 5/8 $10.53 200 1,496 /4 $26.33 500 3,740 1 or larger $42.24 800 5,984 Section 2. This Ordinance shall take effect on the 1st day of July 2020. Passed, approved, and adopted this 23rd day of April 2020. 9 Roy D. Buol, Mayor Attest: Kevi 8. Firnstahl C. Clerk 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 18.64 Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 29th day of April, 2020 K I ublic in and for Dubuqu County, Iowa. JANET K. PAPE Commission Number 199859 fly Comm. Exp, DEC 11, 2022 Ad text : OFFICIAL PUBLICATION ORDINANCE NO. 16-20 CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13-2C-3 RATES ESTABLISHED FOR FISCAL YEAR 2021 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-2C-3 of the City of Dubuque Code of Ordinances reads as follows: 13-2C-3: RATES ESTABLISHED: Contributors whose property lies within the corporate limits of the city, except as otherwise provided in this article, shall pay to the city at the same time payment for water services is made, a sewer service charge computed on water consumption on the following rates: B. Schedule Of Rates: Rate per each 100 cubic feet, $5.27 Rate per each gallon, 0.00704 C. Service Charge: 7. Where the quantity of water consumed is such that the minimum of service is charged, the minimum sewer service charge, according to the size of the meter, shall be as follows: Meter Size (Inches), Minimum Charge, Allowance (Cubic Feet), Allowance (Gallons) 5/8, $10.53, $200, 1,496 *, $26.33, 500, $3,740 1 or larger, $42.24, 800, 5,984 Section 2. This Ordinance shall take effect on the 1st day of July 2020. Passed, approved, and adopted this 23rd day of April 2020. /s/Roy D. Buol, Mayor Attest: /s/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