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IV.3. Second Reading: Recommend Amending Section 715 of the Hopkins City Code Regarding Calculation of Winter Sewer Average; Harkess (Memo) November 1, 2016 Council Report 2016-112 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 2016-1117 for second reading. Adoption of this motion will approve 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. The first reading was held on October 18, 2016, following the second reading the ordinance change will be published and become effective. There have been no changes to the ordinance since the first reading. 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: ______ ____________ 1 CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE 2016-1117 ORDINANCE AMENDING SECTION 715 OF THE HOPKINS CITY CODE PERTAINING TO THE CALCULATION OF SANITARY SEWER CHARGES AND RATES THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: Section 1. That the Hopkins City Code Section 715.07 be amended to add the underlined material and strike the stricken material as follows: 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 accounts whose average consumption is under 2,000 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 dwelling account during the month ending in January 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. Section 2. The effective date of this ordinance shall be the date of publication. First Reading: October 18, 2016 Second Reading: November 1, 2016 Date of Publication: November 10, 2016 Date Ordinance Takes Effect: November 10, 2016 B y : Molly Cummings, Mayor ATTEST: Amy Domeier, City Clerk