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Code of Ordinance Amendments - Title 13 Public Utilities - Water Rates Copyrig hted March 24, 2021 City of Dubuque Special Meeting Action Items # 1. ITEM TITLE: Code of Ordinance Amendments - Title 13 Public Utilities - Fixing Water Rates: Residential, Commercial, I ndustrial and other uses; Fire Sprinkler Service SUMMARY: ORDINANCE Establishing Cityof Dubuque Code of Ordinances Title 13 Public Utilities, Chapter 1 Water Use and Service,Article C Rates, Section 13-1 C-1(A) Fixing Water Rates for Residential, Commercial, I ndustrial, and all other uses ORDINANCE 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 SUGGESTED Suggested Disposition: Receive and File; Motion B; Motion A DISPOSITION: ATTACHMENTS: Description Type Water Rate Comparison Memo Staff Memo Fi�ang Water Rates for Residential, Commercial Ordinance Industrial, and All Other Uses Ordinance Fi�ang Water Rates for Fire Sprinkler Ordinance Ordinance Water Utility Rate Comparison FY21 To FY22 Supporting Documentation Fire Sprinkler Rate Comparison FY21 to FY22 Supporting Documentation Suggested Motion Wording Supporting Documentation Dubuque THE CITY OF � D V L � All-America Ci1Y � ► Masterpiece on the Mississippi � zoo�•zaiz•xozs•zoi� 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 13-1 C-1(a) Residential, Commercial, Industrial and other uses; and Section 13-1 C-2 Fire Sprinkler Service DATE: March 24, 2021 INRODUCTION The purpose of this memorandum is to provide two ordinances for review and approval. These ordinances establish the FY22 City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Article C, Section 13-1 C-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 in the Water Department's budget request for FY22, that a 3% rate increase be implemented. It is also recommended that the Minimum Monthly Water Charge be increased to $7.21, which also reflects a 3% rate increase. Proposed and approved rate structures of comparable lowa 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. Proposed FY22 Water Rates Comparison (6,000 Gallons) $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $- Council Dubuque Ames Cedar Average lowa City Des West Des Bluffs Rapids w/o Moines Moines Dubuque Rank, Highest to Comparable Lime Proposed FY22 Lowest Softened Water Water Cost for Communities, Cit 6,000 Gallons 7 West Des Moines $ 40.23 6 Des Moines $ 36.86 5 lowa City $ 35.01 4 Cedar Rapids $ 35.03 3 Ames $ 33.82 2 Dubuque $ 31.62 1 Council Bluffs $ 29.67 Average $ 34.61 Average w/o Dubuque $ 35.10 The proposed rate increase of 3%, would place Dubuque as having the second lowest water rate. The highest rate (West Des Moines) is 27.23% higher than Dubuque's rate, and the average rate of comparable lime softened communities is 9.44% higher than Dubuque. The average without Dubuque is 11.02% higher than Dubuque's proposed rate. RECOMMENDATION It is recommended the attached proposed ordinances be submitted to the City Council for adoption during the FY22 Budget Hearings with an effective date of July 1, 2021. cc: Crenna Brumwell, City Attorney Jenny Larson, Director of Finance and Budget Adrienne Breitfelder, City Clerk Randy Gehl, Public Information Officer Jenna Hirtz, Budget Analyst File 2 Prepared by Denise Blakeley-Ihrig. Water Department Manager, 901 Hawthorn St., Dubuque, IA 52001 (563) 589-4290 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 6-21 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 Charge per Hundred Cubic Feet $3.97 $3.23 $3.00 $2.65 $2.35 Monthly Consumption Charge per (in Gallons) Gallon First 22,440 $0.00527 Next 89,760 $0.00432 Next 261,800 $0.00403 Next 374,000 $0.00355 Over 748,000 $0.00311 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 5/8 2 3/4 5 1 8 1 1 /2 26 2 46 3 106 4 168 Monthly Consumption (In Gallons) 1,496 3,740 5,984 19,448 34,408 79,288 125,664 Minimum Charae $7.88 $19.71 $31.54 $102.49 $169.96 $363.84 $560.28 6 368 275,264 $1,163.17 8 625 467,500 $1,893.00 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 $7.21 minimum monthly charge shall be assessed for meters not in service. Section 2.'This Ordinance shall take effect July 1, 2021. Passed, approved and adopted this 24t" day of March, 2021. Roy D. ol, Mayor Attest: Adrienne N. Breitfelder, Uty Clerk Prepared by Denise Blakeley-Ihrig. Water Department Manager, 901 Hawthorn St., Dubuque, IA 52001 (563) 589-4290 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 7-21 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 13-1 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) ..................... $24.17 200-299.................................... $29.02 300-399.................................... $33.79 400-599.................................... $38.68 600-799.................................... $43.47 800 -999.................................... $48.33 1,000 - 1,199.................................. $53.18 1,200 - 1,399.................................. $57.96 1,400 - 1,599.................................. $62.80 1,600 - 1,799.................................. $67.65 1,800 - 1,999.................................. $72.44 2,000 - 2,199.................................. $77.29 2,200 - 2,399.................................. $82.12 2,400 - 2,599.................................. $86.96 2,600 - 2,799.................................. $91.79 2,800 - 2,900.................................. $96.74 3,000 - 3,499.................................. $101.44 Over 3,500*.................................... $4.82 *(for each additional 500 heads or fraction thereof) Section 2. This Ordinance shall take effect July 1, 2021. Passed, approved and adopted this 24th day of March, 2 1 1. -"'� 0, ze'�- Roy D. B o , Mayor Attest: .� /-7, A " Adrienne N. Breitfelder, C y Clerk City of Dubuque Water Utility Rate Comparison FY2021 to FY2022 Rates based on units of one-hundred cubic feet (748 gallons) Monthly FY 21 FY 22 Consumption 0.00% 3.00% First 30 $ 3.85 $ 3.97 Next 120 $ 3.14 $ 3.23 Next 350 $ 2.91 $ 3.00 Next S00 $ 2.57 $ 2.65 Over 1,000 $ 2.28 $ 2.35 ACTUAL PROPOSED Monthly FY 21 FY 22 Consumption 0.00% 3.00% First 22,440 $ 0.00512 $ 0.00527 Next 89,760 $ 0.00419 $ 0.00432 Next 261,800 $ 0.00391 $ 0.00403 Next 374,000 $ 0.00345 $ 0.00355 Over 748,000 $ 0.00302 $ 0.00311 Rates shall be subject to the following minimum monthly charges according to the size of the meter: ACTUAL PROPOSED Meter Cubic FY 21 FY 22 Size Feet Gallons 0.00% 3.00% 5/8 2 1,496 $ 7.66 $ 7.88 3/4 5 3,740 $ 19.15 $ 19.71 1 8 5,984 $ 30.64 $ 31.54 11/2 26 19,448 $ 99.57 $ 102.49 2 46 34,408 $ 165.04 $ 169.96 3 106 79,288 $ 353.09 $ 363.84 4 168 125,664 $ 543.63 $ 560.28 6 368 275,264 $ 1,128.57 $ 1,163.17 8 625 467,500 $ 1,837.20 $ 1,893.00 For users outside of city limits, an additional charge equal to 50%of the above rates will be made. A$7.21 minimum monthly charge shall be assessed for meters not in service, this reflects the 3% rate increase. City of Dubuque Fire Sprinkler Rate Comparison FY2021 to FY2022 Actual Proposed FY21 FY22 0.00% 3.00% Up to 200 (minimum) $ 23.47 $ 24.17 200-299 $ 28.17 $ 29.02 300-399 $ 32.81 $ 33.79 400-599 $ 37.55 $ 38.68 600-799 $ 42.20 $ 43.47 800 -999 $ 46.92 $ 48.33 1,000 - 1,199 $ 51.63 $ 53.18 1,200 - 1,399 $ 56.27 $ 57.96 1,400 - 1,599 $ 60.97 $ 62.80 1,600 - 1,799 $ 65.68 $ 67.65 1,800 - 1,999 $ 70.33 $ 72.44 2,000 - 2,199 $ 75.04 $ 77.29 2,200 -2,399 $ 79.73 $ 82.12 2,400 -2,599 $ 84.43 $ 86.96 2,600 -2,799 $ 89.12 $ 91.79 2,800 -2,900 $ 93.92 $ 96.74 3,000 - 3,499 $ 98.49 $ 101.44 Ov�r 3,500* $ 4.68 $ 4.82 *(for each additional 500 heads or fraction thereofl 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: 03/31/2021 and for which the charge is 33.60 Subscribed to be re me, a Notary Public 'n and for Dubuque County, Iowa, this 31st day of March, 2021 Notary Public in and for Dubuque County, Iowa. Ar ^e r' V j 0=2- EXP- Wy 10, 2'p'7.:3 Ad text : OFFICIAL PUBLICATION ORDINANCE NO. 6-21 ESTABLISHING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 1 WATER USE AND SERVICE, ARTICLE C RATES, SECTION 13-lC-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, $3.97 Next 120, $3.23 Next 350, $3.00 Next 500, $2.65 Over 1,000, $2.35 Monthly Consumption (in Gallons)"Charge per"Gallon" First 22,440, $0.00527 Next 89,760, $0.00432 Next 261,800, $0.00403 Next 374,000, $0.00355 Over 748,000, $0.00311 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, $7.88" *, 5, 3,740, $19.71" 1, 8, 5,984, $31.54" 1 *. 26, 19,448, $102.49" 2, 46, 34,408, $169.96" 3, 106, 79,288, $363.84" 4, 168, 125,664, $560.28" 6, 368, 275,264, $1,163.17" 8, 625, 467,500, $1,893.00" 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 $7.21 minimum monthly charge shall be assessed for meters not in service. Section 2. This Ordinance shall take effect July 1, 2021. Passed, approved and adopted this 24th day of March, 2021. /s/Roy D. Buol, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 31 st day of March 2021. /s/Adrienne N. Breitfelder, City Clerk It 3/31 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: 03/31/2021 and for which the charge is 21.70 Subscribed to before me, a Notary Public in d for Dubuque County, Iowa, this 31st day of March, 2021 Notary Public in and for Dubuque County, Iowa. SHARON WELBORN C-01M 11*1100 8l 1m b w 8274.04 �;. WY C0a IML EX;, ►f0V 10, 2023 Ad text : OFFICIAL PUBLICATION ORDINANCE NO. 7-21 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), $24.17 200-299,$29.02 300-399,$33.79 400-599,$38.68 600-799, $43.47 800 -999, $48.33 1,000 - 1,199", $53.18 1,200-1,399 $57.96 1,400 - 1,599$62.80 1,600 - 1,799", $67.65 1,800-1,999 $72.44 2,000-2,199% $77.29 2,200 - 2,399", $82.12 2,400 - 2,599% $86.96 2,600-2,799 $91.79 2,800 - 2,900", $96.74 3,000-3,499% $101.44 Over 3,500*,^$4.82 *(for each additional 500 heads or fraction thereof)"" Section 2. This Ordinance shall take effect July 1, 2021. Passed, approved and adopted this 24th day of March, 2021. /s/Roy D. Buol, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 31 st day of March 2021. /s/Adrienne N. Breitfelder, City Clerk It 3/31