HomeMy WebLinkAboutPacket, Notice of Intention to Increase Water Rates
TOWN COUNCIL
MEETING
INFORMATION
TOWN OF MARANA
MEETING DATE: July 5, 2005
AGENDA ITEM:
IX.B.2
TO: MAYOR AND COUNCIL
FROM: C. Brad DeSpain, Utilities Director
SUBJECT: Resolution No. 2005-80: Relating to Water Service; adopting a
Notice ofIntention to increase rates and charges of the potable
water system.
DISCUSSION
On June 21,2005, the Mayor and Council heard a presentation from Westland Resources, Inc.
regarding proposed water rate increases. Per the presentation, the need for the increase is to
promote water use conversation and maintain the overall integrity of the water system. The
Mayor and Council instructed staff to proceed with the rate increase process. The Notice of
Intention is required by A.R.S. S 9-511-01.
The Notice of Intention indicates that September 6, 2005 will be the public hearing date and that
the hearing will occur at or about 7:00 p.m. in the Town Council Chambers. Upon conclusion of
the public hearing, the Council may adopt the proposed rate increase.
In addition, Marana Town Code (Article 14-11-1 and 2) requires that a written notice be
provided to all Town of Marana municipal water system customers be sent out at least 15 days
prior to the hearing. Staff will proceed with this requirement if Resolution No. 2005-80 is
approved by the Council.
ATTACHMENTS
I. Exhibit A - Town of Marana, Arizona potable water system rates and charges; and
2. Proposal for Town of Marana Municipal Water Department 2006 Rate Increase
RECOMMENDATION
The Water Utility Advisory Committee and Staff recommend approval of the Notice ofIntention
regarding rate increases for the water system.
SUGGESTED MOTION
I move to adopt Resolution No. 2005-80.
BLU Notice of Intention
06/29/20056:50 PM APM
MARANA RESOLUTION NO. 2005-80
RELATING TO WATER SERVICE; ADOPTING A NOTICE OF INTENTION TO
INCREASE RATES AND CHARGES OF THE POTABLE WATER SYSTEM.
WHEREAS, the Town of Marana, Arizona (the "Town") has the requisite statutory
authority to acquire, own and maintain a water utility system (the "Water System") for the
benefit ofthe property and users within and without the Town's corporate boundaries pursuant to
the provisions of Arizona Revised Statutes 9-511 et. seq; and
WHEREAS, the Town has caused to be prepared a presentation by Westland Resources,
Inc., which presentation concludes that certain increases in rates and charges for use of the Water
System are necessary to support the maintenance and development of the Water System and
encourage water conservation; and
WHEREAS, the Mayor and Council are required to adopt a Notice of Intention to
increase rates and charges for use of the Water System and to set a date for a public hearing on
the proposed increases in accordance with Arizona Revised Statutes 9-511.01; and
WHEREAS, this resolution shall constitute a Notice ofIntention by the Town to increase
rates and charges for use ofthe Water System, as shown in attached Exhibit A; and
WHEREAS, a public hearing on the proposed increase in rates and charges is hereby set
for or about 7:00 P.M. on September 6, 2005, in the Town Council Chambers, 1 ]555 West Civic
Center Drive, Marana, Arizona, at which oral and written comments will be received on the
proposed increases. Following such hearing, the Mayor and Council will consider appropriate
further action regarding the proposed rates and charges increase; and
WHEREAS, a copy ofthe Water Presentation will be made available to the public by
filing a copy in the office of the Town Clerk at least 30 days prior to said hearing. The Town
Manager or the Town Clerk or the designees of either are hereby authorized and directed to
cause a copy of this Notice ofIntention to be published at least four times in a newspaper of
general circulation not less than 20 days prior to said hearing. Above this Notice of Intention, as
so published, shall appear a caption in substantially the following form:
NOTICE OF PUBLIC HEARING
SEPTEMBER 6, 2005, 7:00 P.M., TOWN COUNCIL CHAMBERS
11555 WEST CIVIC CENTER DRIVE
TOWN OF MARANA, ARIZONA
ON
PROPOSED INCREASE IN WATER SYSTEM RATES AND CHARGES
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
Adopt a Notice of Intention to increase water rates and set a public hearing for
such on September 6,2005.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana this 5th day
of July, 2005.
Mayor ED HONEA
ATTEST:
Jocelyn C. Bronson, Town Clerk
APPROVED AS TO FORM:
Frank Cassidy, Town Attorney
EXHIBIT A
TOWN OF MARANA, ARIZONA
POT ABLE WATER SYSTEM
RATES AND CHARGES
Section 1. A vailabilitv chan~es based on size of water service:
Current Rates
Effective 1/2/06
Meter Size Minimum Chan~e
5/8" x 3/4" Meter $ 14.00 Per month No change
1" Meter 34.00 Per month No change
11/2" Meter 37.00 Per month No change
2" Meter 43.00 Per month No change
3" Meter 58.00 Per month No change
4" Meter 102.00 Per month No change
5" Meter 152.00 Per month No change
6" Meter 202.00 Per month No change
Section 2. Usal!e charl!es, water:
First 1,000 gallons included in minimum
Per thousand gallons, 1001 - 10,000 $2.55 $2.15
Per thousand gallons, 10,001 - 20,000 $2.55 $3.00
Per thousand gallons, 20,001 - 30,000 $2.55 $3.90
Per thousand gallons, 30,001 - 40,000 $2.55 $4.80
Per thousand gallons, 40,001 and over $2.55 $6.90
RESOLUTION NO. 2005-
RSO 050705 water rate increase
APM 6/2912005
PROPOSAL FOR TOWN OF MARANA
MUNICIPAL WATER DEPARTMENT
2006 RATE INCREASE
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PROPOSAL FOR TOWN OF MARANA MUNIOPAL WATER DEPARTMENT 2006 RATE INCREASE
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TABLE OF CONTENTS
1.0 INTRODUCTION .................................................................................................................................. 1
2.0 EXISTING RATE SUMMARY ............................................................................................................2
3.0 PROPOSED RATE STRUCTURE........................................................................................................3
LIST OF TABLES
Table 1. Existing Monthly Minimum Charge by Meter Size .......................................................................2
LIST OF FIGURES
Figure 1. Comparison of Water Rates.......................................................................................................... 2
Figure 2. Comparison of Existing and Proposed Rate Structures .................................................................3
LIST OF EXHIBITS
Exhibit A. Potable Water System Rates and Charges
Q:\JObs\500'S\527.01\Impacl: Fees\Proposal for Town of Marana Municipal Water Department 2006 Rate Increase.doc
TOC
PROPOSAL FOR TOWN OF MARANA MUNICIPAL WATER DEPARTMENT 2006 RATE INCREASE
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1.0 INTRODUCTION
The Town of Marana Municipal Water Department (TMWD) in its budgeting process for the 2005-2006
fiscal year has identified a budget deficiency of approximately $300,000. The TMWD is an enterprise
fund of the Town of Marana (TOM) with an obligation to balance its annual budget. In an effort to
balance its budget, the TMWD proposes to modify its existing rate structure to promote conservation and
to increase its overall revenue by 3.0%.
Q:\Jobs\SOO's\527.01\lmpact Fees\Proposal for Town of Mar ana Municipal Water Department 2006 Rate Increase_doc
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PROPOSAL FOR TOWN OF MARANA MUNICIPAL WATER DEPARTMENT 2006 RATE INCREASE
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2.0 EXISTING RATE SUMMARY
The existing TMWD rate structure is a flat rate structure. Each customer pays a minimum monthly charge
based on meter size (Table I), and a commodity charge of $2.55 per 1,000 gallons of water usage, with
the first 1,000 gallons of usage included within the monthly minimum charge.
T bilE . f M hi M' .
Ch
b M t S'
- - - - -- - - - -- - - -
\1111111111111 ( h.lI gl'
\Il'll'! Sill' (pl~1 111(11111)
- - - - -
5/8"x%" $14
I" $34
1 1,12" $37
2" $43
3" $58
4" $102
5" $152
6" $202
Standoioe No Minimum
The TMWD has compared its rate structure with that of neighboring water providers. Figure 1 compares
the TMWD's existing rates with that of its neighboring water providers. As depicted in the figure, the
TMWD is the only water provider that does not have a tiered rate structure.
$200
$180
$160
$140
$120
Ii;
E $100
~
~ $80
{)
.9 $60
1l $40
{)
>- $20
~ $0
o
:> 0
! /
-Marana V
-Tucson Water /'
-Metro
OVWU V ..,.iiii'
./ -' '""=--
/
T
- '/""
I T
5
10
15
20
25
30
35
40
Monthly Water Usage (1000 gallons)
Figure 1. Comparison of Water Rates
Page-2
Q:lJobs\500's\S27.01\Impact Fees\Proposal for Town of Maran a Municipal Water Department 2006 Rate Increase.doc
PROPOSAL FOR TOWN OF MARANA MUNIOPAL WATER DEPARTMENT 2006 RATE INCREASE
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3.0 PROPOSED RATE STRUCTURE
The TMWD proposes to modify its rate structure as proposed in Exhibit A. The new structure will
accomplish a variety of objectives for the TMWD. There are no proposed changes to the monthly
minimum charge by meter size. Changes are, however, proposed to the monthly usage charges. These
changes will actually lower the charge for the first 10,000 gallons of water usage. This first tier of usage
will be reduced from the existing rate by 40 cents per 1,000 gallons. This change will reward low water
users by promoting conservation. New and higher tiered rates are proposed for all other categories of
usage. Figure 2 compares the TMWD's proposed rate structure with the existing rate structures of its
neighboring water providers.
$200
$180
$160
Q; $140
E
.9 $120
'"
8 $100
.9 $80
-;;;
8 $60
:E $40
'E
o $20
::;
$0
o
-Existing Rates
- Proposed Rates
-Tucson Water
10
20
30
40
50
Monthly Water Usage (1000 gallons)
Figure 2. Comparison of Existing aud Proposed Rate Structnres
Based on a rate model prepared by TOM Staff and its consultants, the new rate structure is expected to
increase overall revenue by approximately 3%.
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EXHIBIT A
POTABLE WATER SYSTEM
RATES AND CHARGES
--.
EXHIBIT A
TOWN OF MARANA, ARIZONA
POT ABLE WATER SYSTEM
RATES AND CHARGES
Section 1. A vailabilitv Chafl!eS based on size of water service:
Current Rates
Effective 1/2/06
Meter Size Minimum Chafl!e
5/8" x 3/4" Meter $ 14.00 Per month No change
1" Meter 34.00 Per month No change
1 112" Meter 37.00 Per month No change
2" Meter 43.00 Per month No change
.- 3" Meter 58.00 Per month No change
4" Meter 102.00 Per month No change
5" Meter 152.00 Per month No change
6" Meter 202.00 Per month No change
Section 2. Usaee charees. water:
First 1,000 gallons included in minimum
Per thousand gallons, 1001 - 10,000 $2.55 $2.15
Per thousand gallons, 10,001 - 20,000 $2.55 $3.00
Per thousand gallons, 20,001 - 30,000 $2.55 $3.90
Per thousand gallons, 30,001 - 40,000 $2.55 $4.80
Per thousand gallons, 40,001 and over $2.55 $6.90
RESOLUTION NO. 2005-
.-
RSO 050705 water rate increase
APM 6/28/2005
AFFIDAVIT OF PUBLICATION
STATE OF ARIZONA
COUNTY OF PIMA
55.
Audrey Smith, being first duly sworn, deposes and says that (s)he is the Legal
Advertising Manager of THE DAILY TERRITORIAL, a daily newspaper printed and
published in the County of Pima, State of Arizona, and of general circulation in the City of
Tucson, County of Pima, State of Arizona and elsewhere, and the hereto attached:
NOTICE OF PUBLIC HEARING
ON PROPOSED INCREASED IN TOWN OF MARANA
WATER SYSTEM RATES AND CHARGES SEPT. 6, 05 ET
AL
was printed and published correctly in the regular and entire issue of said THE DAILY
TERRITORIAL for 4 issues; that was first made on the 8th day of July 2005
and the last publication thereof was made on the 13th day of July 2005;
that said publication was made on each of the following dates, to-wit:
07/08/05
07/11/05
07/12/05
07/13/05
at the Request of:
Town of Marana
JAMIE C. MACIAS
Notary Public - Arizona
Pima County
Expires 02/04/08
, Legal Advertising Manager
e this 13th day of July 2005.
by
Subscribed and sworn to e
\-'''''-
......",....,
, '- Y)
ry Public in and for the County of Pima, State of Arizona
My commission expires: 'd-/ L1 ~ ~
NOTICE OF PUBLIC HEARING
ON PROP:;lSED INCREASE IN
""'OWN OF~I,RANA WATER SYSTEM
RATES AND CHARGES
SEPTEMBER 6, 2005, 7 PM, TOWN
COUNCil CHAMBERS
11555 W. CIVIC CENTER DRIVE,
MARANA AZ
The Town Of Marana hereby gives no-
tice pursuant to A.R.S. 99-511.01 ot its
intention to increase water system rates
and charges. Among other things, the
new water rates and charges propose
to include usage charges of $2.15 to
$6.90 per thousand gallons, depending
on total monthly usage. The Marana
Town Council will conduct a public
hearing on these water rates and
charges on September 6, 2005, at or af-
ter 7 PM at the Marana Town Councii
Chambers, 11555 W. Civic Center
Drive, Marana AZ. For information, call
the Town of Marana Water Department
at 520 382 2570
PUBLISH: The Dally Territorial
July 8,11,12,13,2005
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