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HomeMy Public PortalAboutRES-CC-2017-44CITY OF MOAB RESOLUTION NO.44-2017 A RESOLUTION REVISING CULINARY WATER USE FEES AND CONNECTION FEES The following describes the intent and purpose of this resolution: a. The City of Moab last revised its culinary water use rates in 2012; these rates are among the lowest in Utah. For example, the Utah Division of Drinking Water Survey of Community Drinking Water Systems, published June, 2015, found the average Utah consumer's monthly water bill to be $47.03. The City of Moab's average consumer water bill (excluding other services) is currently $16.09. b. Revenues from the current culinary water user fees have typically been insufficient to cover the City's ongoing operations and maintenance needs for the water system. Historically this has required that the City subsidize the culinary water system, principally from wastewater treatment revenues or other City revenues. c. The City anticipates higher operations and maintenance costs as demands on the system increase and infrastructure ages. d. The City finds that it is necessary and appropriate that culinary water user fees pay for all of the ongoing operations and maintenance needs of the system. e. The City finds that it is necessary and appropriate that culinary water user fees be structured so as to encourage conservation and the efficient use of water. Higher fees for higher rates of consumption will encourage conservation. f. There is a need to adjust culinary water connection fees so that new customers are apprized in advance of the cost of installing connections. The current practice of charging for construction overages in addition to the connection fee has resulted in customer dissatisfaction and a lack of transparency as to actual costs. g. The City currently has sufficient capacity and serves a number of culinary water customers located outside of the municipal limits, though it is not obligated to do so. It is appropriate that culinary water customers located outside of the City limits, who do not otherwise contribute taxes or other revenue for City services, continue to pay a higher service rate so that the ongoing costs of operations and maintenance outside of the City limits can be fully recouped, and the goals of conservation served. h. The City has water rate setting authority pursuant to U.C.A. § 10-3-717. i. The City finds that the following rate structure is reasonable and consistent with the objectives and policies described above. Therefore, the City hereby enacts the following culinary water rates: 1 Use Description Rate Use fee: Residential, in City: First 2000 gallons (base charge): $10.00 2001-10,000 gallons (per 1000): $0.75 10,001 gallons + (per 1000): [Proposed tier] 10,001-60,000 (per 1000): $1.00 [Proposed tier:] 60,001+ (per 1000): $1.25 Use fee: Commercial, in City First 2000 gallons (base charge): $25.00 2001-5,000 gallons (per 1000): $1.00 5,001-10,000 gallons (per 1000): $1.50 10,001-50,000 gallons (per 1000): $2.00 50,000 gallons + (per 1000): $2.50 Use fee: Residential, out of City First 2000 gallons (base charge): $14.50 2001-10,000 gallons (per 1000): $1.00 10,001 gallons + (per 1000): [Proposed tier] 10,001-60,000 (per 1000): $1.50 [Proposed tier:] 60,001+ (per 1000): $1.75 Use fee: Commercial, out of City First 2000 gallons (base charge): $29.50 2001-5,000 gallons (per 1000): $2.00 5,001-10,000 gallons (per 1000): 2.25 10,001-50,000 gallons (per 1000): $2.50 50,000 gallons + (per 1000): $2.75 Connection fee: In City 5/8"x3/4" meter: $1840 1" meter: $2305 1 %:" meter: $2485 2"meter: $2785 4"meter: $4555 Connection fee: Out of City 5/8"x3/4" meter: $1925 1" meter: $2045 1 %" meter: $2325 2" meter: $2965 4" meter: $4915 Industrial Water Use Fees (per 1000 g) Shop Water Retail Fee $7.75 Shop Water Government Fee $5.50 Construction Hydrant Fee $7.75 2 The foregoing resolution is approved and adopted by action of the Moab City Council, as set f h below. This resolution shall take effect on July 1, 2017. --�E—ci Mayor David Sakrison Attest: L_„Lc.J&, -OntntQ' mrrt„b --UtipLA 114,J Date Date -End of Document- 3