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| DATE:
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4/19/2016 7:00:00 PM |
| SUBJECT: |
| An Ordinance Amending Sections 7-17 and 17-19 of the Gillette City Code to Revise Rates for Plant Investment Fees and System Development Charges. |
| BACKGROUND: |
Ordinance first reading 6/0 (Councilman Kuntz absent)
Ordinance second reading 7/0
This ordinance has been written to formally approve the System Development Charges (SDCs), that have been reviewed and supported by the Regional Water Panel, for all the customers of the Gillette Regional Water Supply System, and to adjust the Plant Investment Fees ordinance, which currently establishes similar fees for connections to the water system. This ordinance, like the new water rates ordinance, recognizes that the water system is now composed on two parts for rate and bookkeeping purposes, the Distribution system and the Transmission system. This ordinance divides the water system connection fees between the Distribution and Transmissions systems by subtracting the new SDC amounts for each standard meter size from the corresponding Plant Investment Fees -Water. The difference is the new Plant Investment Fee-Water. All new connections to the over-all Gillette Regional Water Supply System and grandfathered Regional Customers identified in the Gillette Regional Water Supply System Joint Powers Agreement (JPA), dated December 21, 2010, will pay a SDC. New connections to the Gillette Distribution system will be charged a Plant Investment Fee-Water and a SDC.
In preparing the ordinance we discovered that only the Plant Investment Fee for the 1 1/2 " meter was lower than the corresponding System Development Charge and so that fee was recalculated using the methodology approved for the System Development Charge resulting in an increase for this one connection of $899.88 in total between the SDC and the new Plant Investment Fee- Water. In all other cases there is no increase in the amount a connection will cost since, as in the case of a 1" connection, the sum of the new Plant Investment Fee-W and the new System Development Charge is the same as the current Plant Investment Fee. Just as is the case with the new combined water rates, the outside the city rate has been discontinued since the new rates are cost of service based. |
| SUGGESTED MOTION: |
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I move for the Approval of an Ordinance Amending Sections 7-17 and 17-19 of the Gillette City Code to Revise Rates for Plant Investment Fees and System Development Charges on Third and Final Reading.
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| STAFF REFERENCE: |
| Charlie Anderson, City Attorney |
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