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VII.3. First Reading: Recommend Amending Section 715 of the Hopkins City Code Regarding Calculation of Winter Sewer Average; Harkess (CR2016-106) October 18, 2016 Council Report 2016-106 RECOMMEND AMENDING SECTION 715 OF THE HOPKINS CITY CODE REGARDING CALCULATION OF WINTER SEWER AVERAGE Proposed Action Staff recommends that the Council approve the following motion: Move that the Hopkins City Council approve Ordinance 2010-1117 for first reading. Adoption of this motion will begin the process of amending Sections 715.07 of the Hopkins City Code to amend how the winter sewer average is calculated, set a minimum winter sewer average and set a minimum sewer average for vacant or new properties that become active. Overview Section 715.07 specifies how the winter sewer average is calculated. With the implementation of our new software the system needs to calculate an average rather than taking one specific month as we’ve done in the past. Therefore we are specifying that the winter average be calculated on the months of January – March, a customer’s lowest consumption period. This average will become the maximum that they will pay on sewer during all other months thus protecting the customer from high water usage due to sprinkling or lawn maintenance. In addition vacant or new properties that become active don’t have a history to calculate an average so the amendment is specifying if there is no history that the winter sewer average be set at 4,000 gallons. Further, staff would like to set a minimum winter average for those customers whose water usage is extremely low. We’re recommending a minimum of 2,000 which equates to 66 gallons a day. The customer will then pay sewer on actual consumption up to the cap of 2,000. Supporting Information  Ordinance number 2016-1117 Christine M. Harkess. CPA, CGFM Finance Director Financial Impact: $ minimal Budgeted: Y/N N Source: Related Documents (CIP, ERP, etc.): _ __________Notes: ______ ____________ Section 715 1 Section 715 - Sewer and water rates 715.01. Subdivision 1. Definitions. For the purpose of this section the terms defined in this subsection have the meanings given them. Subd. 2. "Residential" means single family dwellings, duplexes, double bungalows, apartment buildings or complexes, or condominium. Subd. 3. "Commercial" means every structure, building, occupancy, use or endeavor except residential. 715.03 Water Rates. Subd. 1. Metered Usage. The water rates per 1,000 gallons of metered water usage shall be established by City Council resolution. The number of gallons of city water furnished from time to time shall be determined by water meter readings, and if any such water is used on premises without a proper water meter or if the meter is out of order, the amount of water used at such interval shall be determined by averaging previous water bills for that location with the same or similar use, or by the average amount of water consumed at other premises during a similar interval with a similar use or business. Meters may be read by officials of the water department every month. (Amended Ord 2004-929 Subd. 2. Non-metered usage. The water superintendent or his designee may allow water to be withdrawn from a hydrant for construction and related purposes. Applications for this use are available from the water superintendent and must be filled out and approved prior to obtaining water. Applicants must pay for the water and provide the necessary deposits as required in the Fire Hydrant Operation Agreement. The water superintendent will periodically establish the flat rate and deposit amount. Flat rate amounts are subject to increase depending on the amount of water to be withdrawn from a hydrant. (Added Ord. #92-712) 715.05. Sanitary sewer; connections. Water meters shall be deemed, for the purpose of this section, to be a sanitary sewer service connection unless such meter is located in premises not connected to the sanitary sewer system. Wherever premises are connected to the sanitary sewer system but are served entirely from a private water source, such premises shall be liable for and subject to the same charges for sanitary sewer service as though the premises were served with metered city water, and the city may require the installation of water meters on any private well and pump, which meter shall be subject to and governed by the same rules, regulations of this code as meters for city water. Hopkins City Code (Rev. 9/2004) 715.01 Section 715 2 Hopkins City Code (Rev. 9/2004), 715.07 715.07. Sanitary sewer charges and rates. Subd. 1. Residential. The sanitary sewer rates, for residential customers shall be established by council resolution for each 1,000 gallons of metered water usage; provided that a daily water usage be established based on the average consumption in the month ending in January for the months of January through March (billed February through April). A minimum average of 2,000 gallons will be set for all account whose average consumption is under 2,000 gallons for the averaging period. In cases of new accounts, new construction, additions, or vacated properties, the average water consumption is to be determined by the first 30 day period following its completion or occupancy until the next ensuing month ending in-January set at a minimum of 4,000 gallons. This minimum will be reset the following year based on the actual consumption for the averaging period. Whenever such average water consumption of any such single family dwellings account during the month ending in January the averaging period, is shown to be unfairly disproportionate because of the customer’s methods or lack of operation or any other reason, then and in that event the water superintendent shall establish an average daily water consumption for the use of fair and suitable methods. The determination of the superintendent is final. Properties that have separate water meters for domestic and sprinkling purposes shall not have a daily average of usage set. (Amended Ord 2004-929 2016-1117) Subd. 2. Commercial. The sanitary sewer rates for commercial customers shall be established by council resolution for each 1,000 gallons of metered water usage. (Amended Ord. #92-712) 715.09. Due dates. Water and sanitary sewer charges are due and payable on the due date stated on the periodic city utility bill. Each billing for water and sanitary sewer charges, which is not paid when due, shall incur a 10% penalty charge on the current billed amount. (Amended Ord. #92-712) 715.11. Special circumstances. In cases of condominium ownership and in any other situations where it is deemed necessary or convenient for the efficient and economical operation of the water or sewer system, the council may, on recommendation of the manager, require a customer or premises owner to provide additional sewer or water connections and/or water meters. (Amended Ord. #92-712) 715.13. Deposits. The manager may require any customer (i) whose credit rating is not established, or (ii) whose service has been discontinued for nonpayment of any charge, or (iii) whose account with the city is delinquent for three or more months, to deposit with the clerk either the sum of (a) $100 or (b) the sum derived by taking the customers city utility bill for summer quarter, whichever amount is greater. The city may draw from the deposit amounts from time to time when the account becomes delinquent. (Amended Ord. #92-712) 715.15. Account guarantees. The manager may require the owner or landlord of premises served by the water and sewer departments, to file with the clerk a written contract or undertaking guaranteeing the payment of any water and sewer service account for the premises. Section 715 3 715.17. Service disconnections. Failure to pay any account on or before the due date, or the failure to maintain any deposit as hereinabove required or the failure to secure and file a written guarantee as provided in 715.15 is sufficient cause or reason to disconnect city water service to any such customer or premises. 715.19. Unpaid charges. Unpaid city utility bills shall be certified to the county director of property taxation for collection as other charges pursuant to Minnesota Statutes, and City Legislative Policy. The owner of the property shall be liable to the city for all bills accruing through the use of water and sewer facilities upon said premises whether the same be personally used by said owner, lessees or other occupant of the premises. (Amended Ord. #98-814) 715.21. Deleted by Ord. 97-808 715.23. Inspections. The manager or designee shall have the right of access at all reasonable hours of the day to enter any and all parts of any home, dwelling or other premises for the purpose of examining sewer and water connections, including meter reading, repairs, disconnections and any other related purpose. (Amended Ord. #92-712) Hopkins City Code (Rev. 8/92) 715.17