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File #: 20-0482    Version: 2 Name: 5/4/20 Sewer Rates - Ordinance Amendment Chp 29
Type: Ordinance Status: Passed
File created: 5/4/2020 In control: City Council
On agenda: 5/18/2020 Final action: 5/18/2020
Enactment date: 5/4/2020 Enactment #: ORD-20-14
Title: An Ordinance to Amend Section 2:64 of Chapter 29 (Sewer Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-20-14)
Attachments: 1. ORD-20-14 Sewer Rates Ordinance Briefed and Approved.pdf, 2. ORD-20-14 Sewer_Ordinance_FY21 Briefed.pdf, 3. Sewer Ordinance FY 21.pdf, 4. ORD-20-14 Sewer Rates Ordinance Briefed and Approved.docx

Title

An Ordinance to Amend Section 2:64 of Chapter 29 (Sewer Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-20-14)

Memorandum

Your approval is requested to amend Section 2:64 of Chapter 29 of Title II of the Code of the City of Ann Arbor to increase sewer rates due to the continuing need to recover revenues required for the purposes of debt coverage and increasing operational costs of the sewage disposal system, such as televising of 20% of the collection system. In addition, revenue from this rate increase will be utilized for capital expenditures required to maintain and rehabilitate the sewer collection system, including significant efforts to line sewer collection pipes as well as the Meter/MTU replacement project.

 

The revenue requirement increase of 6.5% is projected to increase revenues to the Sewage Disposal System by $1,964,736.00.

 

City Customers are billed in conjunction with the water and stormwater utility.  The increase for the sewer portion of a customer’s bill is an estimated $8.00 per quarter, or $32.00 annually.  For the purposes of this comparison, the bill is calculated as a residential customer, with a 5/8” meter, using 18 CCF per quarter.  The early payment discount (10%) is not included in this calculation.

Staff

Prepared by:                       Marti Praschan, Chief of Staff, Public Services

Reviewed by:  Craig Hupy, Public Services Area Administrator

Approved by:                       Tom Crawford, Interim City Administrator.

Body

ORDINANCE NO. ORD-20-14

 

First Reading:                     May 4, 2020                                                                                    Approved:                     May 18, 2020

Public Hearing:                     May 18, 2020                                                               Published:                     May 21, 2020

                                                                                                                                                                        Effective:                     July 1, 2020

 

WATER, SEWER AND STORMWATER RATES

 

AN ORDINANCE TO AMEND SECTION 2:64 OF CHAPTER 29 (Water, Sewer and Stormwater Rates) OF TITLE II OF THE CODE OF THE CITY OF ANN ARBOR

The City of Ann Arbor ordains:

Section 1. That Section 2:64 of Chapter 29 of Title II of the Code of the City of Ann Arbor be amended to read as follows:

 

2:64. - Sewer rates.

 

(1)                     The commodity charge for customers in Ann Arbor is $6.33 per 100 cubic feet (CCF) of water flow, of which $1.34 is a user charge for wastewater plant operation, maintenance and replacement, 43 cents is a user charge for field operation and maintenance of the sewer system, 58 cents is a user charge for system planning and administration, and $3.98 is applied toward a portion of capital expenditures and debt on prior capital expenditures. Charges for sewer service provided to Ann Arbor Township, Pittsfield Township and Scio Township shall be as provided per the provisions of their respective wastewater treatment or sewer agreements with the City of Ann Arbor.

(2)                     Customer charges per quarter are as follows.

” meter

$15.96

meter

16.42

1" meter

17.05

1" meter

19.52

2" meter

21.76

3" meter

55.91

4" meter

63.38

6" meter

67.34

8" meter

80.56

10" meter

86.25

 

Section 2. That this ordinance shall take effect on July 1, 2020 or ten days after the passing of this ordinance.

 

CERTIFICATION

 

I hereby certify that the foregoing ordinance was adopted by the Council of the City of Ann Arbor, Michigan at its regular session of May 18, 2020.

 

                                                               

                     (Date)

                                                                                                                                                                                                                                                                                 

                                                                                                                              Jacqueline Beaudry, Ann Arbor City Clerk

                                                                                    

Christopher Taylor, Mayor

 

I hereby certify that the foregoing ordinance received legal publication on the City Clerk’s Webpage on May 21, 2020.

 

 

                                                                                                                                                                                                                                                                                 

                                                                                                                              Jacqueline Beaudry, Ann Arbor City Clerk