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Home My WebLink About[08a] Ordinance Amendment - Ord 43CITY OF HT. J[MPFi Council Agenda Item 8 a MEETING DATE: June 2, 2011 AGENDA ITEM: Ordinance Amendment — Request Action: Authorize the Mayor and Administrator to execute the Ordinance Amendment to the Sewer Rate Ordinance (43) and adopt resolution 2011 -011 authorizing Summary Publication. SUBMITTED BY: Administration BOARD /COMMISSION /COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: During the process of reviewing the Sewer Use Agreement with St. Benedict it became apparent that the Sewer Rate Ordinance was in need of updating. The purpose of the Ordinance is to reflect the rate structure, not the rates themselves as they change from year to year and the terms for service. Therefore, the Ordinance has been updated to reflect the current billing practices. Once the Ordinance is adopted the terms on the fee schedule will be modified to meet the Ordinance. BUDGET /FISCAL IMPACT: ATTACHMENTS: Request for Council Action 8(a):1 -2 Ordinance 43 8(a):3 -6 Amendment to Ordinance 43 8(a):7 Resolution 2011 -013 Summary Publication 8(a):8 REQUESTED COUNCIL ACTION: Two actions are required on this matter. First, if the Amendment is to move forward, a motion to authorize execution of the Ordinance Amendment, causing the same to be published. Second, if the Ordinance Amendment is approved, a motion would be required authorizing execution of Resolution 2011 -013, Summary Publication. 8(a):1 THIS PAGE INTENTIONALLY LEFT BLANK 8(a):2 CHAPTER IV — WATER & SEWER ORDINANCE 43 SEWER RATE ORDINANCE ....................................... ............................... 4 Section 43.01: PURPOSE AND POLICY .................................... ............................... 43 -1 Section43.02: USERS ........................................................................... ...........................43 -1 Section43.03: RATES ........................................................................... ...........................43 -1 Section 43.04: ADMINISTRATION ................................................. ............................... 43 -2 Section43.05: PENALTIES .............................................................. ............................... 43 -3 Section 43.06: SEVERABILITY AND VALIDITY ............................. ...........................43 -3 8(a):3 CHAPTER IV — WATER & SEWER ORDINANCE 43 SEWER RATE ORDINANCE Section 43.01. Purpose and Policy. The purpose of this Ordinance is to set and recover fees from users of the St. Joseph Sanitary Sewer System on an equitable basis to provide funds for the operation and maintenance, debt service, replacement and improvements to the St. Joseph Sanitary Sewer System, including all cost associated with being part of the St. Cloud Wastewater System. Section 43.02. Users. Users of the St. Joseph Sanitary Sewer System shall be identified as belonging to one of the following User Classes: a. General User b. Contract User Users shall be considered General Users unless the City Council has determined that a particular User should be subject to a separate agreement with the City in accordance with the following criteria: a. Users who discharge a flow volume greater than 50,000 gallons per day on an annual basis. b. Users who discharge Extra Strength Waste c. Users who are otherwise required to obtain a Wastewater Discharge Permit in accordance with Section 4.20.8 of the Sewer Use Ordinance. Section 43.03. Rates. All Users of the system, regardless of User Classification, will be billed for discharging normal domestic strength wastewater. To determine billable wastewater, all users of the wastewater system must have water meters installed on the water source. The charges for service will be divided into two rates: a. Sewer Line Charge: All users of the St. Joseph Wastewater System will be billed a proportionate share of the fixed costs of the wastewater facilities. Annually the City Council will review the fixed cost and establish the Sewer Line Charge. The fixed costs used to determine the sewer line charge will be equated to a charge per unit and the unit charges shall be applied as follows: Residential Uses — including single family, two family, three family and Manufactured Home Community Park shall be billed one unit for each residential use. For the purposes of determining a residential unit, each 8(a):4 CHAPTER IV — WATER & SEWER apartment or individual living unit shall be charged one unit per month. The number of units will be multiplied by the monthly rate. ii. Commercial/Industrial Uses — each use shall be charged one unit. For the purposes of determining a commercial/industrial unit, each business in a multi -tenant building will be charged one unit per month. The number of units will be multiplied by the monthly rate. iii. Mixed Use Facilities — each use in a multi use building shall be charged one unit. If the facility includes living units, each living unit shall be charged one unit per month and each individual business shall be charged on unit per month. The number of units will be multiplied by the monthly rate. iv. Other Uses — Properties utilizing wastewater services that are not listed above shall be charged one unit cost per residential equivalent. Residential equivalent shall consist of dividing the monthly water /sewer use by the average residential water use of 274 gallons per day. This number and any portion thereof shall represent the number of units to be charged on a monthly basis. Example: 5.25 units shall be considered 6 units for purpose of determining number of units. The number of units will be multiplied by the monthly rate. b. Sewer Usage Charge: All Users of the St. Joseph Wastewater System will be billed for wastewater calculated on the basis of metered water usage, or if applicable direct wastewater metering. Annually the City will establish a budget for the sewer fund and the budgeted costs less the fixed costs will be extrapolated into a per gallon sewer use charge. The City Council will annually establish the sewer use charge. The Sewer Use rate will be billed as follows: i. Residential Uses — The sewer use charge shall be calculated on the basis of metered water usage. The billable flows for residential uses shall be obtained by measuring the metered potable water usage and the annual reading for November and December shall be the maximum sewer charge until the next annual reading. If billable flows for any service period is lower than the November and December reading the lower reading shall be used for that period. ii. Commercial/Industrial/Contract Users — The sewer use charge shall be calculated on the basis of metered water usage or when applicable direct wastewater measurement. Users will be billed the established Sewer Usage charge based on the potable water usage or direct wastewater measurement for each billing period. Section 43.04. Administration. The Sewer Service Charge System and Sewer Service Fund shall be administered according to the following provisions: 8(a):5 CHAPTER IV — WATER & SEWER Subd. 1: The City shall maintain the Sewer Fund in accordance with the Minnesota Accounting and Financial Reporting Standards as adopted and amended by the Office of the State Auditor. Subd. 2: The City Council shall annually review user rates and charges to determine whether sufficient revenue is being generated for the effective operation, maintenance, replacement, management of the Wastewater System and debt retirement. Subd. 3: Bills for service shall be mailed bi- monthly following the period for which the service was rendered and shall be due 30 days from the date of mailing. Any bill not paid in full 30 days after the date of mailing will be considered delinquent and will be charged a penalty which will be set by the City Council. Subd. 4: The owner of the premise shall be liable to pay for the service to such premises, and the service is furnished to the premises by the City only upon the condition that the owner of the premises is liable therefore to the City. Section 43.05. Penalties. Subd. 1. Criminal Penalties. Any person violating any of the provisions of this ordinance shall be guilty of a criminal offense, punishable as a misdemeanor as defined by City ordinance or state law. Subd. 2: Twice annually delinquent in excess of three service periods shall be certified to the County Auditor as taxes or assessments on the real estate. Nothing in this ordinance shall be held or construed as in any way stopping or interfering with the right of the City to levy taxes or assessments against any premises affected any delinquent or past due sewer service charges. Subd. 3: As an alternative to levying a lien, the City may, at its discretion, file suit in a civil action to collect such amounts as are delinquent and due against the occupant, owner, or user of the real estate, and shall collect as well all attorney's fees incurred by the City in filing the civil action. Such attorney's fees shall be fixed by order of the court. Section 43.06. Severability and Validity Subd. 1: If any section or subdivision of this ordinance shall be held invalid, the invalidity thereof shall not affect the validity of the other provisions of this ordinance, which shall continue in full force and effect. Subd. 2: This ordinance shall be in full force and take effect from and after its passage and approval and publication as provide by law. 8(a):6 ORDINANCE 43 SEWER RATE ORDINANCE SUMMARY PUBLICATION The Council of the City of St. Joseph hereby ordains: That the text to Ordinance 43 entitled "Sewer Rate Ordinance" has been repealed in its entirety and replaced with the following: "Purpose and Policy: The purpose of this Ordinance is to set and recover fees from users of the St. Joseph Sanitary Sewer System on an equitable basis to provide funds for the operation and maintenance, debt service, replacement and improvements to the St. Joseph Sanitary Sewer System, including all costs associated with being part of the St. Cloud Wastewater System." This Ordinance was adopted on the 2 °a day of June, 2011 and shall be effective upon publication. CITY OF ST. JOSEPH M This amendment was published on Rick Schultz, Mayor Judy Weyrens, Administrator 8(a):7 RESOLUTION 2011 -013 RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF ORDINANCE 43 (Sewer Rate Ordinance) RECITALS: WHEREAS, on June 2, 2011, the City Council for the City of St. Joseph repealed the text to Ordinance 43, entitled "Sewer Rate Ordinance" and replaced it in its entirety. WHEREAS, the City of St. Joseph desires to publish the Ordinance by Summary Publication. THEREFORE, IT IS HEREBY RESOLVED: 1. The City Council has reviewed the proposed Summary Publication and finds that the summary of the Ordinance clearly informs the public of the intent and effect of the Ordinance. 2. The City of St. Joseph directs the City Administrator to publish the Ordinance by Summary Publication. Adopted this 2nd day of June . 2011, by a vote of in favor and opposed. CITY OF ST. JOSEPH By By Rick Schultz, Mayor Judy Weyrens, Administrator 8(a):8