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HomeMy WebLinkAbout09571 City Clerk’s Office Item # R-10 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: September 23, 2019 TO: President Dennis E. Flores and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Brenda Armijo, City Clerk FROM: Nancy Keller, Wastewater Director SUBJECT: AN ORDINANCE AMENDING CHAPTERS 6 AND 7 OF TITLE XVI OF THE PUEBLO MUNICIPAL CODE RELATING TO AND INCREASING SEWER USER CHARGES SUMMARY: Attached is an Ordinance amending Chapters 6 and 7 of Title XVI of the Pueblo Municipal Code relating to and increasing sewer user charges. PREVIOUS COUNCIL ACTION : Ordinance No. 9459 awarded an agreement between the City of Pueblo and Raftelis Financial Consultants, Inc., for professional services associated with providing sanitary sewer rate consulting as well as a Sanitary Sewer Connection Fee and Plant Investment Fee Study, on May 28, 2019. BACKGROUND : Pueblo’s Municipal Code presently requires that a review of wastewater rates be performed at least every two years to ensure that the rates generate sufficient revenue to fund total operation and maintenance costs of the wastewater system, and to ensure that the rates maintain the proportionate distribution of costs among user classes (Section 16-7-9). In accordance with this requirement, Raftelis Financial Consultants, Inc., the Wastewater Rate Consultant of Record, reviewed the 20-year Capital Improvement Plan, the Wastewater Department’s debt service requirements, and the fund balances. During the October 7, 2019 Work Session, a detailed presentation was given regarding the findings and proposed increase in rates. The study indicated that due to increased regulatory requirements, of which some have already been put into effect and others are still awaiting final ruling, increased rates will be required. The Wastewater Department is currently working on capital projects to maintain compliance with water quality regulations for nutrients as well as the Selenium Discharger Specific Variance. Further improvements to the collection system and pilot projects for treatment will be needed to maintain compliance with the Discharger Specific Variance. The ordinance has therefore been prepared to provide for annual increases in wastewater rates for Pueblo residences and industries, and for the Blende Sanitation District, beginning in 2020. FINANCIAL IMPLICATIONS : The proposed ordinance anticipates that the City Council will periodically adjust sanitary sewer rates. BOARD/COMMISSION RECOMMENDATION : None STAKEHOLDER PROCESS : Residents within the City of Pueblo and the Blend Sanitation District are the primary stakeholders affected by this rate increase. There was one stakeholder meeting held during a presentation given at a City Council work session on October 7, 2019. ALTERNATIVES : The no action alternative would continue wastewater service fee increases previously adopted and effective January 1, 2020 but would not address future increases necessary at a level sufficient to fund capital improvements to the Water Reclamation Facility and collection system to attain compliance with water quality regulations and maintain the aging infrastructure. Failure to maintain compliance will create the potential for enforcement actions by state and federal authorities that carry maximum fines of $36,000 a day per day of violation, and waiting to increase revenues until the compliance deadline arrives will result in much higher rate increases that will place additional burdens on rate payers. The proposed alternative will implement an increase in the wastewater rate structure beginning January 1, 2020. RECOMMENDATION : Approval of the Ordinance. Attachments : The Final Rate Report as prepared by Raftelis Financial Consultants, Inc. ORDINANCE NO. 9571 AN ORDINANCE AMENDING CHAPTERS 6 AND 7 OF TITLE XVI OF THE PUEBLO MUNICIPAL CODE RELATING TO AND INCREASING SEWER USER CHARGES BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Section 16-6-2 of Chapter 6, Title XVI of the Pueblo Municipal Code, is amended to read as follows: Sec. 16-6-2. Rates and charges. (a) Nonindustrial users. The wastewater charge for nonindustrial users shall be the sum of the monthly service charge and monthly sewer volume charge, computed as follows: \[\]January 1, 2020 (1) Commencing on January 1, 2016 , and for each month in each \[\]2024 year thereafter through December 31, 2020 , for and in accordance with the calendar months and years indicated in the following table, the monthly service charge portion of the wastewater charge shall be assessed and charged based upon the water meter size of the water line or lines servicing the property in accordance with the following \[\]2025 table. Commencing January 1, 2021 , the monthly service charge portion of the wastewater charge shall be as established from time to time by the City Council by ordinance; provided, however, that if City Council fails at any time to do so, the monthly service charge shall remain at the then last established amount. _____________________________________________ \[ Table 16-6-2(a)(1) YearJan. 1, 2016 Jan. 1, 2017, Jan. 1, 2018, Jan. 1, 2019 Jan. 1, 2020, to Dec. 2016to Dec. 2017to Dec. 2018to Dec. 2019to Dec. 2020 Meter Line Size in Monthly Service Charge (in U.S. Dollars) Inches ⅝ and ¾ 14.83 16.75 18.93 20.63 22.49 1 17.63 19.92 22.51 24.54 26.74 1½ 26.54 29.99 33.89 36.94 40.27 2 39.64 44.79 50.62 55.17 60.14 3 70.58 79.76 90.12 98.23 107.08 4 103.52 116.98 132.18 144.08 157.05 6 169.50 191.54 216.43 235.91 257.15 8 224.72 253.94 286.95 312.77 340.92 \] Table 16-6-2(a)(1) Year Jan. 1 2020 to Jan. 1, 2021, Jan. 1, 2022, to Jan. 1, 2023 Jan. 1, 2024, to Dec. Dec. 2020 to Dec. 2021 Dec. 2022 to Dec. 2023 2024 Meter Line Size in Monthly Service Charge (in U.S. Dollars) Inches ⅝ and ¾ 21.87 23.18 24.34 25.56 26.32 1 26.01 27.57 28.95 30.40 31.31 1½ 39.16 41.51 43.58 45.76 47.13 2 58.48 61.99 65.09 68.34 70.39 3 104.12 110.37 115.89 121.68 125.33 4 152.72 161.89 169.98 178.48 183.84 6 250.06 265.07 278.32 292.24 301.01 8 331.54 351.43 369.00 387.45 399.07 ______________________ \[\]January 1, 2020 (2) Commencing on January 1, 2016 , and for each month in each \[\]2024 year thereafter, through December 31, 2020 for and in accordance with the calendar months and years indicated in the following table, the monthly sewer volume charge portion of the wastewater charge for each property with metered water service furnished and provided by the Board of Water Works shall be the amount shown in the following table for each one thousand (1,000) gallons of water furnished and supplied to \[\]2025 the property. Commencing January 1, 2021 , the monthly sewer volume charge portion of the wastewater charge for each one thousand (1,000) gallons of water shall be as established from time to time by the City Council by ordinance; provided, however, that if City Council fails at any time to do so, the monthly sewer volume charge shall remain at the then last established rate. _______________________________________________________ \[ Table 16-6-2(a)(2) Year Jan.1, 2016 to Jan. 1, 2017, to Jan. 1, 2018 to Jan. 1, 2019 to Jan. 1, 2020, to Dec. 2016Dec. 2017Dec. 2018Dec. 2019Dec. 2020 Monthly Sewer Volume Charge (in U.S. Dollars per 1,000 gallons) Nonindustrial 3.46 3.91 4.42 4.81 5.25 Use \] Table 16-6-2(a)(2) Jan.1, 2020 to Jan. 1, 2021, to Jan. 1, 2022 to Jan. 1, 2023 to Jan. 1, 2024, to Year Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Dec. 2024 Monthly Sewer Volume Charge (in U.S. Dollars per 1,000 gallons) Nonindustrial 5.10 5.40 5.67 5.96 6.14 Use ____________________________________________ (3) The monthly sewer volume charge shall be based upon the monthly water meter measurements and readings (or estimates thereof) of the Board of Water Works and shall be computed and billed as follows: a. The monthly sewer volume charge shall be the amount specified in Table 16-6- 2(a)(2) for the applicable month and year for each one thousand (1,000) gallons of water charged and billed to the property by the Board of Water Works during its January and February monthly billing periods for said year. The term monthly billing period, as used herein, commences when a water meter is read in the prior month and ends when the water meter is read in the subsequent month of billing. \[ b. The monthly sewer volume charge for each month from and including January \]January 1, 202031\[\]2024 2016 , through and including December , 2020 and for the months of January through December each year thereafter, shall be calculated as the amount specified in Table 16-6-2(a)(2) for the applicable month and year in dollars per one thousand (1,000) gallons multiplied by the average of the thousands of gallons of water charged and billed to the property by the Board of Water Works during the immediately preceding January and February. c. If for any reason water meter readings are not made or are delayed, the sewer volume charge shall be computed upon an estimate of water services and the actual charge therefor shall be made and apportioned upon the actual meter measurement and readings made thereafter. d. In the event a property is connected to the Board of Water Works system after February of any year or if for some other reason there is not available an average monthly sewer volume charge based upon the January-to-February billing periods or such periods in prior years, the monthly sewer volume charge shall be an amount equal to the applicable calendar year monthly rate specified in Table 16-6-2(a)(2) per one thousand (1,000) gallons of water used multiplied by five (5) per month for each residential unit served at each property. e. The sewer volume charge for each property using water not metered by the Board of Water Works shall be an amount equal to the applicable calendar year monthly rate specified in Table 16-6-2(a)(2) per one thousand (1,000) gallons of water used multiplied by five (5) per month for each residential unit served at each property or the applicable calendar year monthly rate specified in Table 16-6-2(a)(2) per one thousand (1,000) gallons of water used per month based upon the January or February monthly estimated water used or actual monthly water used, whichever would be most proportionate to all classes of users, as determined by the Director of Wastewater . (b) Industrial users. (1) The wastewater charge for industrial users shall be the sum of the monthly service charge based upon the meter size and determined in accordance with Paragraph (a)(1) of \[\] this Section, and a monthly sewer volume charge. Commencing on January 1, 2016 January 1, 2020 , and for each month in each year thereafter, for and in accordance with the calendar months and years indicated in the following table, the monthly sewer volume charge for industrial users shall be the amount shown in the following table for each one thousand (1,000) gallons of discharge per month based upon either actual measured discharge or upon water used after adjustment for any permitted use allowance, as determined by the Director of Wastewater plus one hundred percent (100%) of any costs incurred by the City in determining the amount of such discharge. Commencing on \[\]2025 January 1, 2021 , the monthly sewer volume charge for industrial users shall be as established by the City Council from time to time by ordinance; provided, however, that if City Council fails at any time to do so, the monthly sewer volume charge for industrial users shall remain at the then last established rate. ___________________________________________________ \[ Table 16-6-2(b)(1) Year Jan.1, 2016 to Jan. 1, 2017, to Jan. 1, 2018 to Jan. 1, 2019, to Jan. 1, 2020, Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 to Dec. 2020 Monthly Sewer Volume Charge (in U.S. Dollars per 1,000 gallons) Industrial Use 3.46 3.91 4.42 4.81 5.25 \] Table 16-6-2(b)(1) Jan. 1, 2024, Jan.1, 2020 to Jan. 1, 2021, to Jan. 1, 2022 to Jan. 1, 2023, to Year to Dec. 2024 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Monthly Sewer Volume Charge (in U.S. Dollars per 1,000 gallons) Industrial Use 5.10 5.40 5.67 5.96 6.14 ___________________________________________________ (2) Industrial users are also subject to excessive strength surcharges as provided in Chapter 7 of this Title and all other fees and charges required of industrial users by this Title. (c) Blende Sanitation District. \[\]January 1, 2020 (1) Commencing on January 1, 2016 , and as adjusted for each month and year thereafter as indicated in the following table, through December 31, \[\]2024 2020 , for wastewater delivered to the City's treatment plant from Blende Sanitation District and derived exclusively from nonindustrial customers, the monthly sewer volume charge shall be the specified monthly nonindustrial use rate for the applicable calendar month and year as set forth in Table 16-6-2(c) below, per one thousand (1,000) gallons, together with such monthly service charges as may be \[\] provided by agreement or resolution of the City Council. Commencing January 1, 2021 2025 , the monthly sewer volume charge shall be as established by the City Council from time to time by ordinance; provided, however, that if City Council fails at any time to do so, the monthly sewer volume charge shall remain at the then last established amount. \[\]January 1, 2020 (2) Commencing on January 1, 2016 , and as adjusted for each month and year thereafter as indicated in the following table, through December 31, \[\]2024 2020 , for wastewater delivered to the City's treatment plant from Blende Sanitation District and derived from industrial customers, the volume charge shall be the specified monthly industrial use rate for the applicable calendar month and year as set forth in Table 16-6-2(c) below, per one thousand (1,000) gallons, together with such monthly service charges as may be provided by agreement or resolution of the City Council, and together with excessive strength surcharges as provided by Chapter 7 of \[\]2025 this Title. Commencing on January 1, 2021 , the monthly sewer volume charge for wastewater delivered by the Blende District derived from industrial customers shall be as established by the City Council from time to time by ordinance; provided, however, that if the City Council fails at any time to do so, the monthly sewer volume charge shall remain at the then last established rate. _____________________________________________ \[ Table 16-6-2(c) YearJan. 1, 2016 to Jan. 1, 2017, to Jan. 1, 2018, to Jan. 1, 2019, to Jan. 1, 2020, to Dec. 2016Dec. 2017Dec. 2018Dec. 2019Dec. 2020 Monthly Sewer Volume Charge (U.S. Dollars per 1,000 gallons) Blende Sanitation 2.75 3.10 3.51 3.82 4.17 District Nonindustrial Use Blende Sanitation 2.75 3.10 3.51 3.82 4.17 District Industrial Use \] Table 16-6-2(c) Year Jan. 1, 2020 to Jan. 1, 2021, to Jan. 1, 2022, Jan. 1, 2023, to Jan. 1, 2024, to Dec. 2020 Dec. 2021 to Dec. 2022 Dec. 2023 Dec. 2024 Monthly Sewer Volume Charge (U.S. Dollars per 1,000 gallons) Blende Sanitation 4.05 4.29 4.51 4.73 4.87 District Nonindustrial Use Blende Sanitation 4.05 4.29 4.51 4.73 4.87 District Industrial Use _______________________________________________ (d) Sewer users and septic haulers depositing or discharging liquid waste into the system shall be assessed wastewater charges consisting of the sum of the following components: \[\]2020 (1) Commencing on January 1, 2016 , and as adjusted for each month and year thereafter as indicated in the following table, the amount of the monitoring charge shall be the amount shown in the row for "MC," in Table 16-7-2(b) of Chapter 7 of this Title for the applicable calendar month and year; and (2) A combined monthly sewer volume charge and excessive strength surcharge at the specified monthly rate for the applicable calendar year as set forth in Table 16-6- 2(d)(2) below, per one thousand (1,000) gallons of liquid waste deposited or discharged into the system. \[2021\] 2025, (3) Commencing January 1, the monitoring charge and the monthly sewer volume charge and excessive strength surcharge charge shall be as established from time to time by the City Council by ordinance; provided, however, that if City Council fails at any time to do so, the monthly service charge shall remain at the then last established amount. \[ Table 16-6-2(d)(2) Jan. 1, Jan. 1, Jan.1, Jan. 1, 2016 to 2017 to 2018 to Jan. 1, 2020 to Dec. Dec. Dec. 2019 to Dec. Year: 2016 2017 2018 Dec. 2019 2020 Septic Haulers’ Combined Monthly Sewer Volume Charge and Excessive Strength Surcharge (in U.S. Dollars per 1,000 gallons) 47.38 53.54 60.50 65.95 71.88 \] Table 16-6-2(d)(2) Jan. 1, Jan. 1, Jan.1, Jan. 1, 2020 to 2021 to 2022 to Jan. 1, 2024 to Dec. Dec. Dec. 2023 to Dec. Year: 2020 2021 2022 Dec. 2023 2024 Septic Haulers’ Combined Monthly Sewer Volume Charge and Excessive Strength Surcharge (in U.S. Dollars per 1,000 gallons) 69.91 74.10 77.81 81.70 84.15 ___________________________________________ ( e) Airport Collection System. (1) The wastewater charges for all users connected to the Airport Collection System shall be as provided in Subsections (a) and (b) of this Section, subject to the provisions of this Subsection (e). (2) (Reserved) (3) (Reserved) (4) The wastewater charges set forth herein for users connected to the Airport Collection System shall be in addition to, and not in lieu of, any and all other charges or fees associated with or assessed to property owners or occupants of facilities located at the Pueblo Memorial Airport or the Airport Industrial Park. SECTION 2. Subsection B of Section 16-7-2 of Chapter 7 of Title XVI of the Pueblo Municipal Code, as amended, is amended to read as follows: \[ Table 16-7-2 (b) Jan. 1, Jan. Jan. 1, Jan. 1, Jan. 1, 2016 2017 2018 to 2019 2020 to Dec. to Dec. Dec. to Dec. to Dec. Year: 2016 2017 2018 2019 2020 $BOD (Dollars 0.380 0.380 0.380 0.380 0.380 per pound for excess BOD) $SS (Dollars per pound 0.190 0.190 0.190 0.190 0.190 for excess SS) MC (Dollars 237.48 268.35 303.24 330.53 360.28 per Month) \] Table 16-7-2 (b) Jan. 1, Jan. 2020 2021 Jan. 1, Jan. 1, Jan. 1, to to 2022 to 2023 2024 to Dec. Dec. Dec. to Dec. Dec. Year: 2020 2021 2022 2023 2024 $BOD (Dollars per 0.380 0.380 0.380 0.380 0.380 pound for excess BOD) $SS (Dollars per pound 0.190 0.190 0.190 0.190 0.190 for excess SS) MC (Dollars 350.36 371.38 389.95 409.45 421.73 per Month) SECTION 3. This Ordinance may be enforced as provided in Sections 16-7-19, 16-7-20, 16-7-21, 16- 7-26, 16-9-13, 16-9-14 and 16-9-15 of Title XVI of the Pueblo Municipal Code, as amended, the remedies therein stated being cumulative, with the exercise of any one or more not constituting any bar or limitation to the exercise of the other. Any person found guilty of a violation of this Ordinance shall be punished as provided in Section 1-2-1 of the Pueblo Municipal Code, as amended. SECTION 4. The Mayor is hereby authorized to execute said contract on behalf of Pueblo, A Municipal Corporation, and the Acting City Clerk shall affix the seal of the City thereto and attest the same. SECTION 5. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance and the attached agreement to effectuate the transactions described therein. SECTION 6. This Ordinance shall become effective on December 31, 2019 at 11:59 p.m. and upon final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City council on September 23, 2019. Final adoption of Ordinance by City Council on October 15, 2019 . President of City Council Action by the Mayor: ☒ Approved on October 17, 2019 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor : □ Council did not act to override the Mayor’s veto. □ Ordinance re-adopted on a vote of , on □ Council action on failed to override the Mayor’s veto. President of City Council ATTEST City Clerk