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HomeMy WebLinkAbout9442-03 Amend Chapter 17 - Establish new Sewer RatesORDINANCE No. 9442-03 Passed by the Common Council of the City of Sotrtlt Bend, Indiana July 28, 20 03 Attest: Attest: Presented by me to the Mayor of the Ciry of Sotttlr Bend, Indiana July 29, 03 20 Ciry Clerk President of Common Cottncit City Clerk Approved and signed by me Jules 30 _ 2p 03 Mrt}~or ORDINANCE NO. °I `~ `12- 03 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 17, ARTICLE 2, SECTION 17-21, AND SECTION 17-25 OF THE SOUTH BEND MUNICIPAL CODE TO ESTABLISH NEW SEWER RATES STATEMENT OF PURPOSE AND INTENT The City of South Bend (City) adopted Ordinance 9387-02 (Bi1188-02) January 13, 2003 revising the rates imposed on all users of the municipally owned sewage works. That ordinance was the subject of challenge by some of the utility users and the St. Joseph Superior Court in Case 71D04-0301-MI-00002 declared Ordinance No. 9387-02 to be void on procedural grounds. Because the sewer rates established in January 2003 are no longer valid, it is critical to the City's physical and financial operation of its sewer utility that revenues be increased over the level that existed prior to Ordinance 9387-02. This necessitates an increase in rates paid by all municipal sewer utility users. In order to raise revenue in a manner which will assure short term, uninterrupted operations of the City's sewer utility, this ordinance amending the City's sewer utility rates is being enacted for calendar years 2003 through 2005, and it provides fora 24% across the board increase in 2003/2004 over the rates established in 1988 with an additional across the board increase of 5% in 2005 over the new 2003/2004 rates. Nothing contained in this Ordinance should be interpreted to be an endorsement of any particular rate making methodology, nor should this Ordinance preclude the City of South Bend from using any other sewer rate making method in the future. This ordinance further clarifies and expands upon the advisory committee which was created initially in Ordinance 9387-02 to "offer advice on future rates to address CSO, storm water and other challenges for 2005 and beyond." (Section II(b) of Ordinance 9387-02, Chapter 17, Article 2, Section 17-25 of the South Bend Municipal Code.) The composition of that advisory committee is more specifically designated in this ordinance to include one representative from each of the three largest customers with at least one to be a customer located within the City of South Bend. This ordinance is in the best interests of the City of South Bend and the users of the South Bend sewage works. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND as follows: Section I. Chapter 17, Article 2, Section 17-21 of the South Bend Municipal Code be and hereby is amended to read as follows: -1- Sec 17-21. Sewage rates determination. (a) Generally, For the use of the service rendered by sewage works, rates and charges shall be collected from the owners of each and every lot, parcel or real estate or building that is connected with the City sanitary system or otherwise discharges sanitary sewage, industrial wastes, water or other liquids, either directly or indirectly, into the sanitary sewage system of the City of South Bend. Such rates and charges include user charges, debt service costs, excessive strength surcharges and other service charges, which rates and charges shall be payable as hereinafter provided. (b) All class I users: (1) The sewage rates and charges shall be based on the quantity of water used on or in the property or premises subject to such rates and charges as the same is measured by the water meter there in use, plus a base charge based on the size of water meter installed, except as herein otherwise provided. For the purpose of billing and collecting the charges for sewage service, the water meters shall be read monthly and the users shall be billed each month (or period equaling a month). The water usage schedule on which the amount of said rates and charges shall be determined is as follows: Schedule of Rates and Charles Metered Rates (per 100 cubic feet) Base Charge per Month 5/8 Inch Meter 3/4 Inch Meter 1 Inch Meter 1 '/2 Inch Meter 2 Inch Meter 3 Inch Meter 4 Inch Meter 6 Inch Meter 8 Inch Meter 10 Inch Meter 12 Inch Meter Rates (Ord. 9387-OZ 01/13/03) 6~-2 X5:-92 3f83 669 2~~ 5~3~ ~;A~9:9$ ~;5-92:3~ Unmetered Monthly User Rate Any Unmetered Residential User $ ~2 (Based on 800 Cubic Feet Per Month) Previous 2003/2004 2005 Rates* 0.92 0.97 X99 ~6:6f -I$.2@ 4$$~ 69:Fr.~ ~5~9:96 2-~2-59 G32- r6 X66 i~5-&@6 ~5~33-89 9.80 13.21 22.57 50.65 86.37 197.16 350.30 784.30 1,397.48 2,179.92 3,140.92 10.29 13.87 23.70 53.18 90.69 207.02 367.82 823.52 1,467.35 2,288.92 3.297.97 16.23 17.04 * These rates were in effect from 1988 until January 2003 when they were modified. The new rates for 2003-2004 area 24% increase over these "previous rates". -2- (~j ~ For the service rendered to the City of South Bend said City shall be subject to the same rates and charges established in harmony therewith. {~j ~ In order to recover the cost of monitoring industrial wastes, the City shall charge the user not less than $100.00 per sampling event plus the actual cost for collecting and analyzing the sample(s) as determined by the City or by an independent laboratory. This charge will be reviewed on the same basis as all other rates and charges in this ordinance. (c) All class II users (wholesale users) (1) Billing for sewage services shall be in accordance with the executed intermunicipal contract for wastewater treatment services, but in no event shall those rates through 2005 be more than the rates for Class I users. Section II. Chapter 17, Article 2, Section 17-25 of the South Bend Municipal Code be and hereby is amended to read as follows: a. In order that the rates and charges for sewage services may remain in proportion to the cost of providing services to the various users ,the City shall cause a cost of service study to be made on a reasonably regular basis as determined by the Board of Works which cost of service study shall include, but not be limited to, an analysis of the cost associated with the treatment of excessive strength effluents form from industrial users, volume and delivery flow rate characteristics attributed to the various users or user classes, the financial position of the sewage works and the adequacy of its revenue to provide reasonable funds for the operation of maintenance, replacements, debt service requirements, taxes and capital improvements to the waste water treatment systems. A similar study shall be made on a reasonably regular basis as determined by the Board of Works for the purpose of reviewing the fairness, equity and proportionality of the rates and charges for sewage services on a continuing basis. Said studies shall be conducted by officers or employees of the City or by a firm of certified public accountants, or a firm of consulting engineers which firms shall have experience in such studies, or by such combination of officers, employees, certified public accountants or engineers as the City shall determine to be best under the circumstances. Such cost of service study shall be a prerequisite to any revision or adjustment of the rates and charges, as necessary. b. The sewage rates and charges set forth in the preceding section 17-21 shall be revised and adjusted for calendar year 2995 2006 to assure adequacy in the cost of maintaining the City sewer works in sound physical and financial condition necessary to render adequate and effective service. However, until such adjustment, the sewage rates and charges in the preceding Section 17-21 shall remain in full force and effect. Discussions between the City Administration and the Common Council concerning sewer rates for 2995 2006 and thereafter shall commence by June 299# 2005. Furthermore, the Mayor and the Common Council will establish within sixty (60)days of the passage of this Ordinance an advisory committee, with both the Mayor and the Common Council President having an equal right of appointment. The committee will be broadly representative of the community., and will include one representative from each of the three (3 largest customers with at least one of the three to be a customer located within the City of South Bend. The group will act as a sounding board to the management of the municipal wastewater utility and will offer advice on cost of service principles for future rates and future revenue -3- requirements for the City's Wastewater Treatment Plant. The Committee will also consider capital investments needed to maintain the CitXs NPDES permit, long term control for CSO, s Storm w Water, Phase II requirements and other challenges for X665 2006 and beyond. The Mayor and Common Council retain ultimate authority and responsibility for the operations and finances of the Municipal Utilities. Section III. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. ~ i(,!/J4 Member, South Bend Comm n Council 1st READING 1 ' ~ ~~~ PUBLIC HEARtNG"]_Za-0_j 3 rd READING _ ~& _ 03 NOT APPRC)y~Ep ~ REfERRE~ PASSED l _ Z $ - (~3 -4- Filed [r~ C1erk'~ ~ffiC~ J U L 0 ~ 2003 LORBTTA J. DtlDl. G17Y CIERSC, °0.6~tdD.lA1. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 53-03 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 17, ARTICLE 2, SECTION 17-21, AND SECTION 17-25 OF THE SOUTH BEND MUNICIPAL CODE TO ESTABLISH NEW SEWER RATES Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Karl King Chairman CITY OF SOUTH SEND STEPHEN ~. LUECKE, MAYOR OFFICE OF THE MAYOR July 9, 2003 Mrs. Karen White, President Common Council County-City Building South Bend, Indiana 46601 RE: Introduction of Proposed Wastewater Utility Rate Ordinance Dear Council esident White~(~/~~ As you know, we need to generate adequate revenue through rates to support the needs of the South Bend Municipal Wastewater Utility. We determined last year that additional revenues were required in order for the Wastewater Utility to continue to serve as a community asset for environmental stewardship and economic development. It was determined that overall revenues need to be increased by 24 percent in order to meet short term needs after 14 years with no rate adjustments. When we approved a rate ordinance in January 2003 based on the Cost of Service Study, there was a court challenge and a determination that technical corrections were necessary. While we are preserving our right to appeal, it is not our intention to resolve matters with our ratepayers through the courts. We have engaged in dialogue with major users in order to craft a pragmatic short term solution to our undisputed need for more revenue to properly operate and maintain the wastewater utilit~~. We believe the attached ordinance with a 24 percent across the board increase for the remainder of 2003 and 2004 and a 5 percent across the board increase in 2005 will allow us to move forward without putting us right back in court. We believe this ordinance will set the stage for fruitful discussions through the Advisory Committee that you and I will appoint without the issue of litigation overshadowing debate. Vde must build a consensus as a community over how to provide stability and predictability of rates, while addressing major issues for permit compliance, such as CSO Long Term Controls and Phase II Stormwater Management. COUNTY-CITY BUILDING • SOUTH ~END~ INDIANA 46601 PHONE 219/235-9261 • FAX 219/235-9892 • TDD 219/235-5567 Aladean DeRose, Jack Dillon, Gary Gilot, John Skomp of Crowe Chizek and I will be available to answer any questions you have at your work session or formal public hearing on this ordinance. If you have any questions or need more information, please contact me. Sincerely, Mayor Stephen Luecke c: Gary Gilot, Public Works Jack Dillon, Environmental Services Aladean DeRose, Legal John Skomp, Crowe Chizek Fj(~d !~ Cl~rl~'s ~ffiC~ J U L ~1 ~ 2003 LOFa~TTA J. DJE9Pa CITY CLER:a, °,~. B~Kti, Itl. NOTICE OF HEARING -SEWER RATE CHANGE To: South Bend Sewage Works Users Located Outside City Limits YOU ARE HEREBY NOTIFIED that the South Bend Common Council will hold a public hearing to consider enactment of Bill No. 53-03, which proposes to increase sewer service rates for users of the City of South Bend sewage works. The date, time, and place of the public hearing are as follows: DATE: Monday, July 28, 2003 PLACE: South Bend Common Council Chambers 4`~ Floor County-City Building 227 West Jefferson Blvd. . South Bend, IN 46601 TIlVIE: 7:00 p.m. The new sewer rates amending the South Bend Municipal Code proposed in Bi1153-03 appear below and are underlined. The new rates area 24% increase over "Previous Rates" that were adopted in 1988, and these new rates will be in effect through 2005 with revision intended in 2006: FORMER PROPOSED NEW RATES RATES Rates Previous 2003/2004 2005 1/13/03 Rates Metered Rates (per 100 cubic feet) $ ~ 9~ 0.92 0.97 Base Charge per Month 5/8 Inch Meter fr.22 X99 9.80 10.29 3/4 Inch Meter 6~ X9:65 13.21 13.87 1 Inch Meter I-5-:9-2 ~~ 22.57 23.70 1 %i Inch Meter 36:$3 4$$5 50.65 53.18 2 Inch Meter 63-:69 69:65 86.37 90.69 3 Inch Meter ~:3~ -i-59:69 197.16 207.02 4 Inch Meter z54-~ z-g2:5$ 350.30 367.82 6 Inch Meter 5~4 63:58 784.30 823.52 8 Inch Meter };8I-9:$$ i~:89 1.397.48 1,467.35 10 Inch Meter 2 -1;75-&86 2.179.92 2.288.92 12 Inch Meter - z^~33-69 3.140.92 3.297.97 Unmetered Monthly User Rate Any Unmetered Residenti al User (Based on 800 Cubic Feet Per Month) $ ~$i X3:89 16.23 17.04 * * * * ~x A full copy of Bi1153-03 is available for public inspection in the South Bend City Clerk's office located in Room 455 of the County-City Building. If you have any objection to this proposed rate change you must attend Common Council's meeting on July 28, 2003 to be heard. Fi(~d in Cl~r. ~ ®fifidce J U L 1 ~ 2003 LOR~TTA J. DLO& ClIY CLER~~ ~0. E3&PlS1~ IRB.