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Home My WebLink About9387-03 Amend Chapter 17, Article 2, Section17-21, and Section 17-25 , to Establish New Sewer RatesORDINANCE No. Passed by the Common Co[tncil of the City of Soutlt Bend, Indiana January 13, 03 20 Attest: Attest: City Clerk President of Common Cottncit Presented by me to the Mayor of the City of Sot~tlt Bend, Indiana January 16 20 03 Ciry Clerk Approved and signed by me January 16 20 ~_ ,~ ~~l.C.e ~~~p Ma}br BILL NO. 88-02 ORDINANCE NO. 1 3~ 1~ O 3 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 last adjusted the rates imposed on users of municipal sewer service in 1988 (Ordinance No. 7942-88). Since that date the costs of operation, maintenance, taxes, replacement, debt service and capital expenses have increased significantly. Under IC 36-9-23-25, the municipal legislative body is required to establish just and equitable fees for services rendered by the sewage works. The statute further provides that just and equitable fees are fees that maintain the sewage works in the sound physical and financial condition necessary to render adequate and efficient service. The municipal legislative body may exercise reasonable discretion in adopting different schedules of fees, or making classifications inschedules of fees, based on variations in the costs of furnishing services to various classifications of users or to various locations, or the number of users in various locations. Experienced experts at Crowe, Chizek and Company, LLP, conducted a rate study and cost- of-service analysis for the City of South Bend on December 20, 2002 which supports the rates which are set forth herein. This Ordinance also eliminates former subsection 17-21(d) which provided separate rates for the "Clay Service Area" which no longer exists. During 2003 and 2004 and until amended, the rates adopted in this Ordinance constitute just and equitable fees within the meaning of IC 36-9-23-25(b). These rates are intended to be revised with new rates effective in 2005 to assure that the municipal sewer system has sufficient revenue to render adequate and efficient service to all of its users. Because it is the intent of the Common Council to review and also revise these sewer rates for 2005, it is also necessary to amend Chapter 17, Article 2, Section 17-25 to effectuate this intent. This Ordinance is in the best interests of the City of South Bend and the users of the South Bend sewer system. 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 -1- hereby is amended to read as follows: 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 of 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 ofwater 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 ofwater 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: ~3ser C~rnrge $ebt 3=otal ~scrniee ~~ ~~ ~~ plus base rate per month: 5f~` ~ r66 ~2-~ X99 3f~` ~ ~ ~~ ~ ~@ l` i? $5 ~ 5x66 ~6 $5 ~-3~@ X6 : z ~ ~~ : ~2:-~-1- 69:fi5 3-u ~@ 5~-~9 X59:69 ~ -1-99:6 9~ ~$~-:56 6u ~6:6~ 266:-~~ 63:56 ~ ~5$~ 3613~t~ X66 -}6u ~1~6 5~-2# X7-5$:68 -2- Schedule of Rates and Charges (2003 & 2004) Rates Metered Rates (per 100 cubic feet) $ 1.35 Base Charge ner Month Sib Inch Meter ~ 6.22 3/4 Inch Meter 6.22 1 Inch Meter 15.92 1 % Inch Meter 35.83 2 Inch Meter 63.69 3 Inch Meter 143.31 4 Inch Meter 254.77 6 Inch Meter 573.24 8 Inch Meter 1,019.08 10 Inch Meter 1,592.32 Unmetered Monthly User Rate AnyUnmetered Residential User ~ 17.02 (Based on 800 Cubic Feet Per Month) - ~}ser l~ebt- C-Irnr~gc $er~itc dotal ~-9:=~9 ~9 X13:69 (3j ~ 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 $100.00 per sampling event plus the actual cost for collecting and analyzing the sample(s) as determined by the City or by an independent laboratory. This charge will be reviewed on the same basis as all other rates and charges in this ordinance. (c) All class II users (wholesale users) (1) Billing for sewage services shall be in accordance with the executed -3- intermunicipal contract for wastewater treatment services. {$~ (This section is deleted in its entirety and is not being replaced.) 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 = r--. __ -'_-_- _ _, 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 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. ' .f ~2=$8~-§-~}- b. The sewage rates and charges set forth in th~recedin~ section 17-21 shall be revised and adjusted for calendar year 2005 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 2005 and thereafter shall -4- commence by June 2004. Furthermore, the Mayor and the Common Council will establish within sixty (60~ day of the passage of this Ordinance an advisory committee with both the Mavor and the Common Council having an ,equal right of appointment The committee will be broadly representative of the community. The roup will act as a sounding board to the management of the municipal wastewater utility and will offer advice on future rates to address CSO, storm water and other challenges for 2005 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. ~~ ~~t Member, South Bend Co on Council 9s1 RgADiNG l ~~~~~~ 1 PUBLIC HEARWG ~ ~1 3 -03 GC 5 S kbS-~~~'~~ Ord READING _13_03 aS Su~S1'~}~'`~~ ~'~IOT APPROVED REFERRED 5 g ~~. -S- PASSED (,^~3'0 3 ~ S S ~~S~'`'`~ LOI;E~Tfd9J. DL's3ii City ~4,EI~':~,~ J. E?i^Llla, tai, COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 88-02 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 17, ARTICLE 2, SECTION 17-21 OF THE SOUTH BEND MUNICIPAL CODE TO ESTABLISH NEW SEWER RATES BOTH INSIDE AND OUTSIDE THE CITY LIMITS 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 as substituted. Karl King Chairman 14UU COUNTY-CITY BUILDInG SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9241 FAx 574/235-9892 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR DEPARTMENT OF LAW CHARLES $. LEONE January 8, 2003 A.LnnEAN M. DEROSE CITYATTORNEY CHIEF ASSISTANT CTTYATTORNEY Ms. Karen White President, South Bend Common Council 4"'Floor, County-City Building South Bend, IN 46601 Dear Ms. White: Attached is a second Substitute Bi1188-02 which deletes much of the language of the Statement of Purpose and Intent contained in the original Substitute Bill and which adds a provision under Section II requiring that discussions between the City Administration and the Common Council concerning sewer rates for 2005 and thereafter shall commence by June, 2004. The changes to the Statement of Purpose and Intent were made at the suggestion of certain large utility users. Because the Administration believes that the history of this Ordinance is well documented, it is probably not necessary to include the history as part of the Statement of Purpose and Intent. The Common Council has freedom to impose any rates now or in the future that will assure the utility's "sound physical and financial condition." Thank you for your favorable consideration of this substitute bill. Sincerely, Aladean M. DeRose Chief Assistant City Attorney AMD/cw cc: Gary Gilot Jack Dillon John Nielsen Paul Kempf Dick Nussbaum Robert Miller Sr. THOMAS L. BODNAR CHERYLA. GREENS JOHN E. BRODEN JEFFREY M. JANKOWSKI ROBERT C. ROSENFELD ANN-CAROL NASH