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File #: 17-0463    Version: 1 Name: 4/17/17 - Chapter 29 Ordinance Change FY18
Type: Ordinance Status: Passed
File created: 4/17/2017 In control: City Council
On agenda: 5/1/2017 Final action: 5/1/2017
Enactment date: 4/17/2017 Enactment #: ORD-17-04
Title: An Ordinance to Amend Sections 2:63, 2:64, and 2:69 of Chapter 29 (Increase Water, Sewer, and Stormwater Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-17-04)
Attachments: 1. 17-04 Briefed and Approved.pdf, 2. 17-04 Water Sewer Stormwater Rates Increase Ordinance Briefed.pdf, 3. Chapter 29 Ordinance Changes FY18.pdf

Title

An Ordinance to Amend Sections 2:63, 2:64, and 2:69 of Chapter 29 (Increase Water, Sewer, and Stormwater Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-17-04)

Memorandum

An Ordinance to Amend Sections 2:63, 2:64, and 2:69 of Chapter 29 (Increase Water, Sewer, and Stormwater Rates) of Title II of the Code of the City of Ann Arbor

 

Your approval is requested to amend Sections 2:63, 2:64, and 2:69 of Chapter 29 of Title II of the Code of the City of Ann Arbor to adjust water, sewer, and stormwater rates due to, debt service coverage, operating and maintenance costs, and capital improvement requirements in all three systems. The amendments will provide revenue increases of 6.75% in water, 6.0% in sewer and 28.0% in stormwater.

 

The recommended rate changes in water, sewer, and stormwater are projected to increase revenues in water, sewer, and stormwater by $1,482,576.00, $1,434,488.00, and $1,970,718.00 respectively. This rate increase is needed to maintain, debt service coverage, operating and maintenance costs, and to maintain funding for capital improvement requirements.

 

The impact of these increases on an average single family customer is $10.72 per quarter or $42.88 per year, a net increase of 6.79%, if consumption is unchanged from last year. For the purpose of this comparison, the single family bill is calculated with 17 units per quarter, is in the second tier for stormwater, and receives the 10% discount for payment on or before the due date.

 

This ordinance is recommended to take effect ten (10) days after legal publication or on July 1, 2017, whichever is later.

Staff

Prepared by: Marti Praschan, Financial Manager

Reviewed by: Craig Hupy, Public Services Area Administrator

Approved by: Howard S. Lazarus, City Administrator

Body

ORDINANCE NO. ORD-17-04

 

First Reading:                     April 17, 2017                                                               Approved:  May 1, 2017

Public Hearing:                     May 1, 2017                                                                                    Published:  May 4, 2017

                                                                                                                                                                        Effective:   July 1, 2017

 

WATER, SEWER AND STORMWATER RATES

 

AN ORDINANCE TO AMEND SECTIONS 2:63, 2:64, AND 2:69 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 Sections 2:63, 2:64, and 2:69 of Chapter 29 of Title II of the Code of the City of Ann Arbor be amended to read as follows:

 

2:63. Water rates.

 

                     (1)                      The commodity charges for water service shall be as follows. A unit shall constitute 100 cubic feet. The rates shown are per unit.

 

 

Residential 1

Residential 2

Water Only

1--7 units

$1.55

$1.55

 $5.89

8--28 units

3.37

3.37

5.89

29--45 units

5.89

5.89

5.89

Over 45 units

5.89

5.89

5.89

 

 

Commercial 1 (including multi-family residential)

Commercial 2 (including multi-family residential)

Commercial 3

All Units

$3.81

$7.26

$12.44

 

Commercial Customer Charge per Quarter:

 

5/8" meter

 $12.90

3/4" meter

 19.00 

1" meter

 30.30

1 1/2" meter

62.00

2" meter

 97.00

3" meter

 195.00

4" meter

 308.00

6" meter

 613.00

8" meter

 1225.00

10" meter

 1960.00

 

Residential Customer Charge per Quarter:

 

5/8" meter $11.25

 

3/4" meter

 16.55 

1" meter

 30.30

1 1/2" meter

 62.00

2" meter

 97.00

3" meter

 195.00

4" meter

 308.00

6" meter

 613.00

8" meter

 1225.00

 

Fire Service Charge per Quarter:

 

1" service75.00

 

1 1/2" service

75.00

2" service

75.00

3" service

75.00

4" service

150.00

6" service

150.00

8” service

150.00

 

 

2:64. Sewer rates.

 

                     (1)                      Commodity charge for customers in Ann Arbor shall be $4.58

 per 100 cubic feet of water flow of which $2.04 is a user charge for wastewater plant operation, maintenance and replacement, 52 cents is a user charge for field operation and maintenance of the sewer system, 53 cents is a user charge for system planning and administration and $1.49 is applied toward a portion of 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 Charge per Quarter:

 

5/8" meter $11.25

 

3/4" meter

 16.55

1" meter

 30.30

1 1/2" meter

 62.00

2" meter

 97.00

3" meter

 195.00

4" meter

 308.00

6" meter

 613.00

8" meter

 1225.00

10" meter

 1225.00

 

 

2:69 Stormwater Rates.

 

(1)                     Except as provided in this section and Chapter 33, all property shall be subject to the stormwater utility charge.

(2)                     Stormwater Discharge Rate.  Each property shall be billed at a quarterly stormwater discharge rate of $595.45 per acre multiplied by the representative impervious area of the property.  The representative impervious area of the property shall be the measured impervious area, rounded to the nearest 0.0001 acre, of the portion of the property discharging to the City’s stormwater system, except for single-family and two-family residential properties and properties considered residential for storm and sewer. These properties have been grouped into the following categories based upon their measured impervious area:

 

Single-Family and Two-Family Residential

Measured impervious area

Representative Impervious Area

Quarterly charge

Less than or equal to 2,187 square feet

0.0370 acres

$22.07

Greater than 2,187 square feet to less than or equal to 4,175 square feet

0.0648 acres

$38.62

Greater than 4,175 square feet to less than or equal to 7,110 square feet

0.111 acres

$66.20

Greater than 7,110 square feet

0.195 acres

$115.85

 

(3)                     Customer Charge.  Each property shall be billed a customer charge of $3.91 per quarter.

 

(4)                     Credits to Stormwater Discharge and Customer Charges.  The City shall offer the following credits per quarter to property owners fully satisfying pertinent criteria established in Chapter 33 and in regulations promulgated by the Administrator:

 

Single-Family and Two-Family Residential

Reduce Total Charge by

Rain Barrels (One or more )

$2.38

Rain Gardens / Cisterns / Dry Wells

$4.93

RiverSafe Homes

$1.01

Chapter 63-Compliant Stormwater Control

$13.13

Other Properties

Reduce Stormwater Discharge Rate by

Reduce Customer  Charge by

Community Partners for Clean Streams

0.0%

25.83%

Chapter 63-Compliant Stormwater Control

28.87%

0.0%

Other Approved Stormwater Controls

8.17%

25.83%

(5)                     Charges for permitted non-stormwater discharges. The charges for non-stormwater discharges to the stormwater system that are permitted by the public services area administrator according to Chapter 33, Section 2:217, shall be $1.23 per 1,000 gallons. If non-stormwater discharges to the stormwater system are controlled such that the discharges cease during periods of precipitation, then the above rate shall be multiplied by a factor of 0.3. For any month in which the user discharges into the stormwater system, there shall be a minimum bill for 100,000 gallons. Stormwater discharges exempt from discharge prohibitions under Section 2:216 (3) are not subject to this charge.

Section 2.                     This ordinance shall take effect on the tenth day following legal publication or on July 1, 2017, whichever is later.

 

C E R T I F I C A T I O N

 

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 1, 2017.

 

                                                                                                                                                                                                                                                            

                                                                                                                                                   Jacqueline Beaudry, City Clerk

                                                                                    

Date

 

                                                                                                         

Christopher Taylor, Mayor

 

I hereby certify that the foregoing ordinance received legal publication on the City Clerk’s Webpage on, May 4, 2017.

 

                                                                                                                                                                                                                                                            

                                                                                                                                                   Jacqueline Beaudry, City Clerk