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Code of Ordinance Amendment - Title 13 Public Utilities - Sewer Rates Copyrig hted March 24, 2021 City of Dubuque Special Meeting Action Items # 2. ITEM TITLE: Code of Ordinance Amendment- Title 13 Public Utilities - Establishing Sewer Rates SUMMARY: ORDINANCE Cityof 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 2022 SUGGESTED Suggested Disposition: Receive and File; Motion B; MotionA DISPOSITION: ATTACHMENTS: Description Type Staff Memo Staff Memo Ordinance Staff Memo Suggested Motion Wording Supporting Documentation Dubuque THE CITY OF �+ All•pmerisa 6i$ DuB � ���A�����,��F ' � � I ��' M�ste iece on the Mississi 1 zao��zoiztzois � pp zoi�*zoi� 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: March 18, 2021 INTRODUCTION: The purpose of this memorandum is to provide an ordinance for review and approval. This ordinance establishes the FY2022 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 FY2022 budget request include a 3% (three percent) sewer rate increase. The following graph and table compare the proposed and approved FY2022 (FY21 rate used for Cedar Rapids and Ankeny) sewer rates of the 11 cities in lowa with a population over 50,000. The calculation is based on the average residential water usage of 6,000 gallons per month. FY2022 Sanitary Sewer Rate Comparison $�o $61.66 $60 $52.04 $52.48 $50 $43.50 $40.02 $41.08 $41.87 $40 $35.26 $36.08 $28$� $30.95 $31.64 $30 $20 � - - � . . � $10 $0 Council Cedar Waterloo Ames lowa City Sioux City Average West Des Dubuque Des Moines Davenport Ankeny Bluffs Rapids w/o Moines (FY21) (FY21) Dubuque Service People Integrity Responsibility Innovation Teamwork Ranked Sewer Cost for Highest to City 6,000 Gallons Notes Lowest 11 Anken FY21 $61.66 No Pro osed Increase for FY22 10 Davenport $52.48 Proposed 7% Increase, Effective 7/1/2021 9 Des Moines $52.04 Proposed 3% Increase, Effective 7/1/2021 8 Dubuque $43.50 Proposed 3°/a Increase, Effective 7/1/2021 7 West Des Moines $41.87 Base rate/1000 gal. Increasing $0.15, Availability Charge increasing 2.5%, Effective 7/1/2021 6 Sioux City $40.02 Proposed 4.5% Increase for FY22, Effective 7/1/2021 5 lowa Cit $36.65 No Pro osed Increase for FY22 4 Ames $36.17 No Pro osed Increase for FY22 3 Waterloo $30.96 Proposed 5% Increase, Effective 7/1/2021 2 Cedar Rapids $29.82 Increase unknown until June 2021 FY21 1 Council Bluffs $28.80 Rate Structure Change Effective April 2021 from tiered to flat Average Cost/6,000 Gallons $41.29 5.56% lower than Dubuque Average Cost/6,000 Gallons w/o Dubuque $41.08 5.06% lower than Dubuque The highest sewer rate (Ankeny) is 41.75% higher than Dubuque's rate, and the average is 5.06% lower than Dubuque. The City of Cedar Rapids completed a Nutrient Reduction and Solids Facility Plan in June 2019. Proposed improvements are estimated at $427.6 million dollars (2018 dollars). The City of Waterloo will make significant 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 has completed a rate study and will increase industrial rates this coming April. Planned capital improvement projects include the construction of a ring levee surrounding the treatment facility, and the construction of a new administration building. The City of Council Bluffs is required to submit an updated nutrient reduction study by December of 2023. Nutrient reduction improvements will require capacity expansion at the treatment facility, resulting in millions of dollars in capital improvement expenses. RECOMMENDATION: Service People Integrity Responsibility Innovation Teamwork I recommend that you approve the proposed ordinance changes and submit them to the City Council for approval at their March 24, 2021 budget hearing. Cc: Crenna Brumwell, City Attorney Jennifer Larson, Director of Finance & Budget Adrienne Breitfelder, City Clerk Randy Gehl, Public Information Officer Attachments: Sewer Rates Ordinance Service People Integrity Responsibility Innovation Teamwork Prepared by William O'Brien, Plant Manager, 795 Julien Dubuque Dr., Dubuque, IA 52003, (563)-589-4176 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 8-21 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 2022 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 $5.42 Rate per each gallon 0.00725 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 '1 Allowance '.. Allowance (Inches) ;Minimum Charge (Cubic Feet) (Gallons) 5/8 1$10.85 1200 11,496 3/4 $27.12 500 3,740 1 or larger $43.38 1800 15,984 i .F . Section 2. This Ordinance shall take effect on the 1st day of July, 2021. Passed, approved, and adopted this 24t" day of March 2021. r Roy D. Buol, ayor Attest: Adrienne N. Breitfelder, City 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: 03/31/2021 and for which the charge is 21.00 Subscribed to before me, a Notary Publ 'n and for Dubuque County, Iowa, this 31st day of March, 2021 Notary Public in and for Dubuque County, Iowa. Commmftsic a N,mba 8:27408 WI Ccam Ezp, NOV 10, 2023 Ad text : OFFICIAL PUBLICATION ORDINANCE NO. 8-21 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 2022 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" $5.42 Rate per each gallon"0.00725 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, $10.85, 200, 1,496 *, $27.12, 500, 3,740 1 or larger, $43.38, 800, 5,984 Section 2. This Ordinance shall take effect on the 1st day of July, 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 E