9/3/2019 Meeting Minutes - Laserfiche WebLink

Home Browse Search

vii.... • 1. Background North Olmsted's current user charge systern is intended to distribute the cost of sanitary sev-vcr service according to the demand on the system. SeWer use charges for in -city users are currently based on water consumption, with an industrial waste surcharge and pretreatment fees for certain users that trll into this catcgory. The user charges set fbrth in Section 915.01 of the City's Codified Ordinances were last updated in 2011. At that time, rate increases were planned yearly through 2019. Customers in North Olmsted are billed based on their water usage by the (,ity, of (1eveland Water Department (CWD) as agent for the City. In 2016. the CWD implemented changes to its billing procedures to allow fbr customers to be billed monthly rather than quarterly. CWD worked with North Olmsted to modify the billing formula so bills would be calculated similarly to the rates customers were previously paying. However, due to the structure of the City's original quarterly rate. the resulting calculation was difficult to elplain to customers, This memo summarizes suggested changes to the rate structure that will allow the City to continue collecting similar revenue, minimize the impact to individual customers. and simplify the overall rate structure. 2. Present Rate Structure 2.1 Quarterly Rate Structure The present Codified Ordinance provides quarterly rates to be charged are shown in Table 1. Table 1: Usage Tiers of Existing Rate Structure __., __ _._ __. __. __.. �...._ For customers uslinia Charges Less than 1 mcf per quarter • Fixed Debt Service and Capital Improvement and Replacement ($30.38/quarter for 2019) • Operation, Maintenance and Repairs fee based on the volume of water metered ($55.68/mcf for 2019) .__......_. ......... __....._.._..._._...._...._.__........._......___........_............_.._......__......._._..........................._._...__.._..............................._..__..__......__.._........_._.._._......_.._.__.._..___....._............ ......._.._.......__._..................-- ............ - .............. ... 1 mcf or more • Debt Service and Capital Improvement and Replacement fee based on the volume of water metered ($30.38/mcf for 2017) • Operation, Maintenance and Repairs fee based on the volume of water metered ($55.68/mcf for 2019) 'The result is essentially a tiered rate structure, in which customers using less than 1 mcf per quarter are charged a different usage rate from those using 1 rncf or more. This is reflected in the way CWD prepares the bills sent to customers, kkhich are calculated as follows. but results in the same over all charges outlined in Table 1. �IIC(7'tE')'�' �,j7CXYQe'S' « Fixed ,,S30.38 • ffosteivater charge fcr the first 1.0 11CF: 5`55.68 • I'Vastelvater Churgeffor every' nncf (urlwrtial) after the first 1.0: 5'86.06 (S30 3X + 5'55.68)