Resolution Resolution to Adopt Rates and Fees for Village of Paw Paw Wastewater (Sanitary Sewer) System Beginning January 1, 2014
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- Alan Stephen Eaton
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1 Village of Paw Paw, Van Buren County Resolution Resolution to Adopt Rates and Fees for Village of Paw Paw Wastewater (Sanitary Sewer) System Beginning January 1, 2014 WHEREAS, the Village of Paw Paw is required to operate a municipal wastewater (sanitary sewer collection and treatment) system; and WHEREAS, the Village Code of Ordinances, 38-81, empowers the Village Council to establish appropriate rates and fees that provide for stable operation of the municipal wastewater system; and WHEREAS, the Village Council is authorized under the Village Code of Ordinances, 2-231, to establish rates and fees by resolution of the Village Council; and WHEREAS, the Village Council has reviewed the Wastewater Fund and the needs of the Wastewater system to determine its financial status and to plan for the long term stability of the Fund and system; and WHEREAS, the Village maintains a variety of rates and fees in an attempt to cover costs and secure adequate funds for long term stable operation of the wastewater collection and treatment system; and WHEREAS, current rates and fees include: Ready-to-Serve (RTS) fee; a per account fee based on incoming water meter size, covering Debt Service and Operation and Maintenance of the system - Commodity Charge; a per gallon charge based on per- 1,000-gallons of wastewater customers put into the collection system - Demand Charge and Solid Surcharges; a fee based on the BOD demand of the waste and the pounds of solids customers put into the collection system which requires greater effort to treatment than typical household waste - Report, Inspection, Permit, and Delinquent Payment fees; based on costs for special services requested by customers - WHEREAS, the customers have enjoyed 16 years of service without an increase in the Readyto-Serve fee which was last established in 1997; and Page 1 of 5
2 WHEREAS, the customers have enjoyed 17 years of service without an increase in the commodity fee as it was last established in 1996; and WHEREAS, the customers have enjoyed 15 years of service without an increase in BOD demand and the pounds of solids Surcharge fees for extra strength discharges as both were last established in 1998; and WHEREAS, the customers have enjoyed ten (10) years of service without an increase in the Report, Inspection, Permit, and Delinquent Payment fees as these were last established in 2003; and WHEREAS, current wastewater rates and fees have not kept pace with usual and typical increases for goods, services, and labor required for the stable operation of the Wastewater system; and WHEREAS, the Village Council has determined the Wastewater Fund shall maintain a Fund Balance (on hand unrestricted cash reserves) to meet three criterion that provide for stable operation of the municipal wastewater system; and WHEREAS, the three criterion are defined as: 1) A cash amount to cover 75% of the lost revenues should the Wastewater fund lose it top five customers. 2) An amount equal to 80% of the annual system emergency repairs over the last several years. 3) An amount equal to what may be a 10% match for grant or bond funding for capital improvement projects. WHEREAS, the Village Council has determined the Wastewater Fund does not currently meet all three criterion and doing so will reasonably require additional revenue collected through rate and fee increases; and WHEREAS, to lessen the impact on volume customers, the Village Council desires to spread the increases over a five (5) year time period; and WHEREAS, the Village Council desires to allow time for customers to prepare for the rate increases by establishing new rates and fees shall take effect January 1, NOW, THEREFORE, BE IT RESOLVED that the Village Council of the Village of Paw Paw hereby adopts a rate and fee schedule designed to be begin with the January 1, 2014 billing cycle and with scheduled changes each January billing cycle for the following calendar years of 2015, 2016, 2017, and Beginning with the January billing cycle the schedule of rates and fees, implemented the first of each calendar year is established as follows: Page 2 of 5
3 YEAR 1 January 1, 2014: with current rate in ( ) s for all customers; rates and fees in $-Dollars; Non-residents 150% Less than (2.14) 7.16 (7.06) 9.40 (9.20) (3.21) (10.97) (14.18) 1-1/ (5.35) (20.70) (26.05) (10.70) (37.17) (47.87) (17.12) (88.06) (105.18) (58.85) (128.19) (187.04) (126.26) (286.02) (412.88) Residents - $2.12 per 1,000 gallons; Non-residents 150% or $3.18 per 1,000 gallons The BOD Demand Charge and Surcharges based on oxygen demand and pounds of solids customers put into the collection system which requires greater treatment; applicable customers: BOD Service Demand Charge 0.70 per pound per month (0.60 per pound per month) Surcharge BOD 0.15 per pound (0.10 per pound) Surcharge Suspended Solids 0.18 per pound (0.13 per pound) Bulk Fee (manhole or at plant) Negotiated The Report fee, Inspection fee, Permit fee, and the Delinquent Payment for Services (Lien) per Report, Inspection, Permit, or DPS, Lien; applicable customers: Reports (35.00) Inspections (25.00) Permits (15.00) DPS, Lien; Residential (50.00) DPS, Lien; Commercial Less than 2 meter (200.00) DPS, Lien; Commercial 2 & greater meter (200.00) YEAR 2 January 1, 2015: Only changes from prior year are indicated for all customers; rates and fees in $-Dollars; Non-residents 150% Less than / Page 3 of 5
4 Residents - $2.17 per 1,000 gallons; Non-residents - 150% or $3.255 per 1,000 customer The BOD Demand Charge and Surcharges based on oxygen demand and pounds of solids customers put into the collection system which requires greater treatment; applicable customers: BOD Service Demand Charge Surcharge BOD Surcharge Suspended Solids 0.75 per pound per month 0.20 per pound 0.25 per pound YEAR 3 January 1, 2016: Less than / Residents - $2.22 per 1,000 gallons; Non-residents 150% or $3.33 per 1,000 gallons YEAR 4 January 1, 2017: Less than / Residents - $2.27 per 1,000 gallons; Non-residents 150% or $3.405 per 1,000 gallons Page 4 of 5
5 YEAR 5 January 1, 2018: Less than / Residents - $2.32 per 1,000 gallons; Non-residents 150% or $3.48 per 1,000 gallons RECORD OF ADOPTION Motion by Michael Pioch with support from Mary McIntosh to adopt / reject (strike one) the resolution. ROLL CALL: AYES: Roman Plaszczak, Wayne Wilhelmi, Mary McIntosh, Donne Rohr, Marcos Flores, Eric Larcinese and Michael Pioch NAYS: None ABSENT: None Resolution declared adopted/rejected (strike one) this 10 th day of June CERTIFICATION I, Christopher Tapper, the duly appointed Clerk of the Village of Paw, do hereby certify that the above is a true and exact copy of a Resolution, passed by the Paw Paw Village Council, on the 10 th day of June 2013, the original of which is on file at the Paw Paw Village Hall. Christopher Tapper Christopher Tapper, Clerk Page 5 of 5
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