Memorandum
City of Lawrence
Utilities Department
TO: |
David L. Corliss – City Manager |
FROM: |
Jeanette Klamm – Management Analyst |
CC: |
Dave Wagner – Director of Utilities Mike Lawless – Deputy Director of Utilities Ed Mullins – Finance Director Casey Toomay – Assistant City Manager |
DATE: |
July 25, 2014 |
RE: |
2015 Water and Wastewater Rate Ordinance |
During the May 20th City Commission Study Session and regular meeting, Utilities Department staff requested Commission direction for the 2015 water and wastewater rates. Staff prepared two scenarios and provided the impact to a typical customer for a third scenario as requested by the Commission. The Commission directed staff to prepare a rate ordinance for Scenario 1.
Scenario 1 includes Phase I improvements as recommended by the Taste and Odor Study and all 2015 planned projects, outlined in the 5-year Capital Improvement Plan as follows:
· Clinton Intake Improvements and Back-up Generator
· Water Plant Maintenance
· Watermain Relocation, Rehabilitation, and Replacement
· Rapid I/I Reduction Program
· Sewer Rehabilitation, Assessment, CIPP, Manholes
· Wakarusa Plant/Influent Pumps Station/Force Main
· Sanitary Sewer Relocations, Pump Station and General Plant Improvement
The funding provided by the 2015 Water and Wastewater Rate Ordinance is necessary for the continued progress of UT1304 Wakarusa WWTP. Therefore, contract 3 for UT1304 Wakarusa WWTP follows on tonight’s agenda.
The adoption of Scenario 1 results in a revenue increase of 6% for water and 4% for wastewater. Attached is the cost to a typical customer , which compares each of the three scenarios to the 2013-2017 Scenario 5 over the 5 year period. Scenario 1 Table provides a comparison of the existing and proposed rates for typical monthly bills. Additional information is provided in the May 20th City Commission staff memo.
In preparation of the rate scenarios, department staff surveyed water and wastewater providers in the region. Most of the utilities surveyed experienced rate increases for 2014 and expect increases for 2015. Comparison graphs for 8,000 gallon and 3,000 gallon usage are provided.
Action
Consider adopting on first reading, Ordinance No. 9008, establishing 2015 water and wastewater service rates, effective November 15, 2014.