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CITY OF SNOHOMISH

Snohomish, Washington

RESOLUTION 1185

A RESOLUTION OF THE CITY OF SNOHOMISH ESTABLISHING RATES TO BE CHARGED FOR WATER, WASTEWATER AND STORMWATER SERVICES AND REPEALING SECTIONS OF RESOLUTION 1153.

WHEREAS, the City of Snohomish provides water, wastewater and storm water services; and

WHEREAS the City of Snohomish has adopted Financial Management Policy B-1, which requires City water, wastewater and stormwater utilities to be self-supporting; and

WHEREAS, the City of Snohomish prepared a Utility Revenue Requirement Study, which details the expected service revenues, operating expenditures, reserve requirements, capital requirements, system replacement requirements and debt coverage requirements for the next six years; and

WHEREAS, the  wastewater utility is mandated by a Federal Consent Decree to perform remodeling of the Wastewater Treatment Plant and certain projects to reduce combined sewer overflows; and

WHEREAS the wastewater utility mandated projects will cost, in excess of $25,000,000; and

WHEREAS the water utility has capital funding obligations of $3,300,000, the stormwater utility has capital funding obligations of $5,000,000; and

WHEREAS the wastewater utility has operations and maintenance reserve requirements of 60 days of expenses, the water utility has operations and maintenance reserve requirements of 90 days of expenses, the stormwater utility has operations and maintenance reserve requirements of 90 days of expenses; and

WHEREAS the wastewater utility has emergency repair reserve requirements of $1,000,000, the water utility has  emergency repair reserve requirements of $500,000, the stormwater utility has emergency repair  reserve requirements of $300,000: and

WHEREAS the wastewater utility has system replacement reserve requirements of $330,000, the water utility has  system replacement  reserve requirements of $170,000, the stormwater utility has system replacement reserve requirements of $205,000: and

WHEREAS the debt coverage target is a ratio of 1.5; and

WHEREAS, the City Council discussed the utility rate study on October 16, 2007, November 6 and 20, 2007 and December 4 and 18, 2007, that addressed the financial need for rate changes to water, wastewater and stormwater; and

WHEREAS, the City Council held a public hearing  on January 2 and 15,2008  to review the rates and revenue needs of the City’s utilities; and

WHEREAS, the City Council last adopted Resolution 1153 on November 21, 2006;

            NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SNOHOMISH, WASHINGTON:

The rates set forth below for water, wastewater and stormwater services for all City of Snohomish utility customers shall be in effect in accordance with Section 2 below, until modified or amended by action of the City Council.

Section 1.        Definitions.  For the purpose of this resolution, the following definitions shall apply:

a.   "Quantity Allowed" means the number of hundreds of cubic feet of water that may be consumed for the monthly minimum charge.

b.     "Overage" means the water that is consumed over the quantity allowed for each meter size in a month.

c.      "Low Income Household" means a household in which the total annual income is below the very low income level for the Seattle/Everett area as established and amended by survey from time to time by the United States Department of Housing and Urban Development.

d.     "Senior Citizen" means a person 62 years of age or older.

e.      "Disabled Person" means a person with a physical or mental impairment that substantially limits one or more major life activities, such as walking, seeing, hearing, speaking, learning, performing manual tasks, caring for oneself, et cetera.

f.       “Abandoned Occupant” means an account where no usage of water (zero consumption) is anticipated for a continuous period of one-hundred and eighty (180) days or more, and where no human habitation or active business operations, other than site construction or demolition is occurring.

g.      “Winter Average” means the average measured water consumption for the four-month period of November through February for accounts in routes 01 through 08 and the December through March time periods for accounts in routes 09-17.

h.     “Leak Adjustment Credit” means a credit applied to a customer’s account when private water line, valve, fixture or other appurtenance is verified to be leaking as a result of accidental damage or natural deterioration.  A Leak Adjustment Credit does not mean when a private water line, valve, fixture, or other appurtenance discharges water due to its being left on by the property owner, tenant or other person(s). 

i.       “Final Utility Billing” means a billing requested by a customer prior to the sale of real estate between billing cycles to which the utility provides service.

j.       “Unbilled Services” means an account for which the billing for services was incorrect for which the error was not immediately known and corrected. 

k.      “Equivalent Residential Unit (ERU)” means the average square footage of impervious surface of a detached single family residential property, which shall be 2,500 square feet for the calculation of storm water rates.

l.       “Single Family Residence” means a structure where a unique family unit resides for the calculation of storm water, solid waste, and recycling rates.

m.    “Multi-Family Residence” means a property where a structure provides living space for five or more unique family units reside for the calculation of solid waste and recycling rates.
 

n.      “Mixed Use Commercial Residential” means a property in a commercial business land use designation that includes both commercial business and residential use within the same structure.

o.     “Other Developed Property” means all other developed property (i.e., non-single-family detached residential property) in the City shall be the base rate multiplied by the numerical factor obtained by dividing the total impervious area (square feet) of the property by one ERU.  The impervious surface area for other developed property is the square footage for the buildings and other improvements on the property.  One ERU shall be 2,500 square feet of impervious surface.  The minimum storm water management fee for other developed property shall equal the base rate for single family residential property.

Section 2.        Effective Dates.  a. All 2008 rates in this resolution shall be effective February 1,2008  for accounts in routes 09 through 17 (cycle 2); and March 1, 2008 for all accounts in routes 01 through 08 (cycle 1) All other provisions of this resolution shall be effective February 1, 2008.

                       b. All 2009 rates in this resolution shall be effective January 1, 2009, for all accounts in routes 01 through 08 (cycle 1); and February 1, 2009, for accounts in routes 09 through 17 (cycle 2). All other provisions of this resolution shall be effective January 1, 2009.

                        c.   All 2010 rates in this resolution shall be effective January 1, 2010, for all accounts in routes 01 through 08 (cycle 1); and February 1, 2010, for accounts in routes 09 through 17 (cycle 2). All other provisions of this resolution shall be effective January 1, 2010.

Section 3.        Water Service Rates.  The following rates will be applied for monthly water service:

a.         Metered Water.

1.     Monthly Minimum Charges by Meter Size.

            2.   Charges for Overage by Hundreds of Cubic Feet.

      All amounts in excess of quantity allowed:  per 100 cubic feet.

b.         Not Metered Water.

c.         Water Service Outside the City Limits.  Rates for services outside of the City of Snohomish shall be City rates as adopted, plus 50 percent, rounded to the nearest $.05.

Section 4.        Wastewater Service Rates.  The following rates will be applied for monthly sewer service:

a.         Metered Sewer.

1.   Monthly Minimum Charges by Meter Size.

2.  Charges for Overage by Hundreds of Cubic Feet.

     All amounts in excess of quantity allowed:  per 100 cubic feet.

b.         Not Metered Wastewater. Per month.

c.         Wastewater Service Outside the City Limits.  Rates for services outside the City of Snohomish shall be City rates as adopted, plus 50 percent.

Section 5.        Storm Water.  The following rates will be applied for monthly sewer service:

a.         Residential Equivalent Unit. per month

b.         Impervious Surface Unit. per month per Equivalent Residential Unit on other developed property.

Section 6.        Low-Income Water and Sanitary Sewer Senior Citizen and Disabled Rates.  Low-income senior citizens or low-income disabled persons who are customers of the utility shall be eligible to apply for water and wastewater services at one-quarter of the monthly minimum charges, and full charges for all overage consumption.

Low-income households in which the principal financial resources are provided by a person meeting the definition of “senior citizen” or “disabled person” may apply for the reduced rates.  The application shall be made upon forms furnished by the City and approved or denied by the City Manager or his designee.  Appeals of the determination of the City Manager, or his designee, shall be to the Utility Hearing Examiner.  The decision of the Utility Hearing Examiner shall be final.

The City may require a customer who is receiving service at a reduced rate to provide information annually to confirm their continued eligibility for the special rate.

The reduced rate provided by this resolution shall apply only to 5/8-inch single-family residential services.

Section 7.        Wastewater Winter Average Charges.  All metered wastewater accounts will have wastewater overage charges for the two summer billing cycles based on either their winter average consumption or current period consumption.

                        Winter average billing will be applied to wastewater overage charges for accounts in routes 01-08 for the summer billing periods of July/August, and September/October as computed from the winter period billing of November/December and January/February.        

Winter average billing will be applied to wastewater overage charges for accounts in routes 09-17 for the summer billing periods of June/July, and August/September as computed from the winter billing period of December/January and February/March.

Section 8.        Abandoned Occupant Rates.  An Abandoned Occupant rate is available to customers where no usage of water (zero consumption) is anticipated for a continuous period of one-hundred and eighty (180) days or more, and where no human habitation or active business operations, other than site construction or demolition is occurring.  The Abandoned Occupant rate will only be available upon prior written notice to the City.  The Abandoned Occupant rate for all meter sizes shall be $5.00 per month within City limits, and $7.50 per month outside of City limits.

Section 9.        Rates for Unauthorized Use.  Water withdrawn without authorized service, and wastewater discharged through unauthorized connections shall be charged at double the rates set forth above, from the date of the commencement of such unauthorized use, and appropriate measures shall be immediately taken to prevent further unauthorized use.  Imposition of such charges shall not act as a waiver of the City’s right to take such other actions as are authorized by law.

Section 10.      Rates for Service Levels Not Defined.  The City Manager shall have the authority to charge rates for service levels not otherwise defined in this resolution under the following methodologies:

Water and Sanitary Sewer Rate Methodology – For any new account requiring a service level, defined by the meter size, not provided in this resolution, the method for determining the customer’s service rate shall be the sectional area of the undefined meter size in ratio to the sectional area of a 5/8” meter.  The ratio shall be applied to the determination of both the base rate and number of included units for the purposes of calculating overage charges.

Solid Waste and Recycling Charges – For any new account requiring a service level, defined by container size, collection frequency, or waste products, not provided in this resolution, the method for determining the customer’s service rate shall be the amount charged by the contract service provider to the City times 1.065.

Section 11.      Unbilled Services.  The City Treasurer shall be authorized to make retroactive adjustments, either billings for services or refunds for charges, for accounts in which the billing for services did not match the services provided for a period not to exceed three years.  Customers of the utility have a duty to provide the City with written requests for changes in service and to review their bi-monthly billing and notify the utility of any errors or corrections.

Section 12.      Final Utility Billings.  Customers who sell real property, to which the City provides utility service, may request in writing, prior to the property’s sale closing date, a Final Utility Bill.  The City shall read the property’s meter on the next proceeding Friday before the closing date and provide the customer by mail with a Final Utility Bill of all charges known to the account.  Solid Waste and Recycling services shall be prorated by the number of days during the Final Bill period.  Solid Waste extras shall be billed when the City receives notice from the contract service provider.

Nothing within Section 12 shall prohibit the City from collecting any outstanding balances from the property to which services have been provided as authorized by Snohomish Municipal Code 15.02.020 and RCW 60.80.020.  A Final Utility Bill request shall not be considered the request for final or estimated utility bill as provided by RCW 60.80.020.

                        Requests for a Final Utility Bill shall be made in writing, on a form provided by the City, prior to the sale date of the property.  The new property owner shall be billed on a prorated basis, based on the property’s next utility meter read and the number of days for water and sanitary sewer and the number of days and extra collections for solid waste and recycling services. 

The City Treasurer shall bill the property owner requesting the Final Utility Bill $25.00 at the time a request is received and the meter is read.

Section 13.      Leak Adjustments. If a private water line, valve, fixture or other appurtenance is verified to be leaking as a result of accidental damage or natural deterioration, the customer may apply for a leak adjustment credit on their current water and sanitary sewer bill.  Applications must be submitted in writing on a form authorized by the City Manager or designee.  The customer must include on the application, receipts which document the repair of the leak which shall include all billings for goods, services, labor and materials.

The leak adjustment credit shall be determined based on the consumption billed during the same bill period in the previous year; or, if the history is not available, in a method determined by the City Manager or designee which best estimates actual water use.  In determining the credit, the City may also consider water consumption from the last meter reading date.  The leak adjustment credit shall be applied to overage charges for water and sewer and shall be credited $1.34 per overage unit for water and $1.55 per overage unit for sewer.  In no case may an account receive a leak adjustment credit for a private water line break or leak more than once in a two-year period regardless of property ownership.

Section 14.      Repeal of Sections of Previous Resolution.  Sections 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, of Resolution 1153 are hereby repealed, consistent with the effective dates of this Resolution as set forth in Section 2 above. Sections 6 and 15 of Resolution 1153 remain in effect.

Section 15.      Publication.  This Resolution shall be published in the official newspaper designated by the City following adoption of this resolution.

PASSED by the City Council and APPROVED by the Mayor this 2nd day of January, 2008.

                                                                        CITY OF SNOHOMISH

                                                                        By________________________________

                                                                                    Randy Hamlin, Mayor

Attest:

By_______________________________

Torchie Corey, City Clerk

Approved as to form:

By_______________________________

Grant K. Weed, City Attorney