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Home My WebLink About#16 - Irrigation Meter Policy1 STAFF REPORT DATE: 6/6/23 REGULAR TO: City Council Workshop FROM: Marty Powers, Director of Public Works REVIEWED BY: Kristina Handt, City Administrator Clarissa Hadler, Finance Director AGENDA ITEM: Irrigation Billing Policy BACKGROUND: In finding inconsistencies with the way irrigation systems have been categorized and billed in the past, Council directed staff in the May 9th workshop to create a policy that will bill all irrigation meters at an irrigation rate. The separate irrigation meters often serve systems designated for multiple properties, multiple homes, out lots, boulevards, medians, HOA properties and/or commercial properties. In an attempt to eliminate billing inconsistencies, all irrigation meters will be billed at a separate irrigation rate. ISSUE BEFORE COUNCIL: At what rate does the council wish to charge water meters that serve only irrigation or landscaping systems? PROPOSAL DETAILS/ANALYSIS: Staff gathered information from other cities as to how they classify and bill water usage going through a meter that only serves an irrigation or landscaping systems. It was found the majority of Cities or water systems, charge a tiered commercial or irrigation rate that is higher than their residential rate. Below is Lake Elmo’s current 2023 rate structure and below that are 3 options Council can consider: Lake Elmo’s current 2023 Resident, Commercial & Hotel water rates are below. Three optional irrigation rate structures for consideration: Residential - Quarterly Base Rate $21.86 Base Residential - Plus Rate per 1,000 Gallons Plus Rate for 0-15,000 Gallons $2.18 Plus Rate for 15,001-30,000 Gallons $2.63 Plus Rate for 30,001-50,000 Gallons $3.15 Plus Rate for 50,001-80,000 Gallons $3.79 Plus Rate for 80,001 + Gallons $4.52 Commercial - Quarterly Rate $27.33 Base Commercial - Plus Rate Per 1,000 Gallons Plus Rate for 0 - 15,000 Gallons $3.39 Plus Rate for 15,001 - 30,000 Gallons $3.56 Plus Rate for 30,001 - 50,000 Gallon $4.12 Plus Rate for 50,001 - 80,000 Gallons $5.46 Plus Rate for 80,001 + Gallons $7.25 Hotel / Motel - Quarterly Rate $27.33 Base Hotel / Motel - Plus Rate Per 1,000 Gallons Plus Rate for 0 -30,000 Gallons $3.39 Plus Rate for 30,001 - 50,000 Gallons $3.56 Plus Rate for 50,001 + Gallons $4.36 2 Option #1 Irrigation Meter Rate Irr w/Tier 2 start Example: cost for 1,166 units, per 1000 gallons used Irrigation – Quarterly Base Rate $27.33 Irrigation – Plus Rate per 1,000 Gallons Plus Rate for 0 – 30,000 $2.63 Plus Rate for 30,001 -50,000 $3.15 Plus Rate for 50,001 – 80,000 $3.79 Plus Rate for 80,001 + Gallons $4.52 $5,099.24 Option #2 Irrigation Meter Rate Irr @$4.52/1000gal Example: cost for 1,166 units, per 1000 gallons used Irrigation – Quarterly Base Rate $27.33 $5,270.32 Option #3 Irrigation Meter Rate Irr + $1 Res Rate Example: cost for 1,166 units, per 1000 gallons used Irrigation – Quarterly Base Rate $27.33 Irrigation – Plus Rate per 1,000 Gallons Plus Rate for 0 – 30,000 $3.63 Plus Rate for 30,001 -50,000 $4.15 Plus Rate for 50,001 – 80,000 $4.79 Plus Rate for 80,001 + Gallons $5.52 $6,252.04 For reference, below are the examples of cost at a residential or commercial rate: Residential Irrigation Meter Rate Irr@Residential rate Example: cost for 1,166 units, per 1000 gallons used Irrigation – Quarterly Base Rate $21.86 Irrigation – Plus Rate per 1,000 Gallons Plus Rate for 0 – 30,000 $2.63 Plus Rate for 30,001 -50,000 $3.15 Plus Rate for 50,001 – 80,000 $3.79 Plus Rate for 80,001 + Gallons $4.52 $5,086.04 Commercial Irrigation Meter Rate Irr@Commercial rate Example: cost for 1,166 units, per 1000 gallons used Irrigation – Quarterly Base Rate $27.33 Irrigation – Plus Rate per 1,000 Gallons Plus Rate for 0 – 30,000 $2.63 Plus Rate for 30,001 -50,000 $3.15 Plus Rate for 50,001 – 80,000 $3.79 Plus Rate for 80,001 + Gallons $4.52 $8,025.52 3 FISCAL IMPACT: Staff expects to see a slight increase in fees from those meters previously charged under the residential rate and a significant decrease in those charged at the commercial rate. The city will continue to review and adjust rates annually in order to cover expenses. OPTIONS: 1) Approve the Lake Elmo Irrigation Meter Billing Policy and Adopt Option # ____ (see above) to set the new irrigation meter fee 2) Amend and then approve the Lake Elmo Irrigation Meter Billing Policy and Adopt Option # ____ (see above) to set the new irrigation meter fee 3) Amend and Approve the Lake Elmo Irrigation Meter Billing Policy and charge all meters the residential rate 4) Amend and Approve the Lake Elmo Irrigation Meter Billing Policy and charge all meters the commercial rate RECOMMENDATION: Based upon a review of other city fee schedule and practices, staff recommends categorizing all meters serving only irrigation or landscaping systems as an irrigation meter and charging a specific irrigation rate. “Motion to approve Lake Elmo Irrigation Meter Billing Policy and Approve Ordinance No 2023-13 to Update the Fee Schedule to Include Option ______” “Motion to Approve Resolution 2023-061 A Resolution to Approving Summary Publication of Ordinance No 2023-13” ATTACHMENTS: Proposed Lake Elmo Irrigation Policy Neighboring City Rates Updated Fee Schedule Summary Publication of Fee Schedule PROPOSED LAKE ELMO IRRIGATION METER BILLING POLICY Determining Water Rates for Meters Serving Only Irrigation/Landscape Systems Irrigation: The process of watering of land by artificial means to foster lawn, tree and plant growth. The waste water from these systems does not go down the city sanitary sewer Purpose: It is the purpose of the policy to provide a uniform and systematic method for staff in classifying and billing water use though meters that only serve irrigation or outdoor landscaping systems. It is the intent to classify and bill the water use and water meters at a specific irrigation rate. An Irrigation Rate will be applied to all water meters that serve only irrigation or landscaping system. A metered irrigation system can (but is not limited too) serve one or more properties that could include HOA systems, common areas, medians, boulevards, green spaces, commercial properties, multiple residential yards or a combination. Landscaping systems can include (but is not limited to) decorative water fountains and gardens. The wastewater from these systems does not drain into the city sanitary sewer system nor are sewer related fees charged on the water use. Public Works staff will determine how each water meter should be classified and relay that information to Utility Billing for proper processing. Irrigation meter rates include base charges, fees and tiers which are set at the beginning of each year and approved by council in the fee schedule 5/22/2023 IRRIGATION METER WATER RATES WATER SYSTEM BILLED AT RESIDENTIAL, COMMERCIAL OR A SPECIFIC IRRIGATION RATE IRRIGATION STARTING RATE TEIRD Y/N DOMESTIC RESIDENTIAL STARTING RATE FOR COMPARISON BASE CHARGES R (residential) C (commercial) I (Irrigation only) Oak Park Heights $1 more than Residential Rate $4.60 YES $3.60 $44.33/ Quarter Mahtomedi SPECIFIC IRR Rate $5.86 NO $3.31 $21.64 White Bear TWP SPECIFIC IRR Rate $6.75 YES $2.55 R- 43.50 C- $43.50 – $107.6 (Based on size of MTR) Shoreview Commercial Rate $3.02 YES $1.87 $33.00 /Account Woodbury Commercial Rate $4.00 NO $1.90 R- $8.00/Quarter C- $8.00/ Month I-$8.00/Quarter Mounds View Commercial Rate includes a more aggressive tier system $2.70 YES $2.70 $21.00/Quarter Brooklyn Park SPECIFIC IRR Rate $4.48 NO $2.50 Charged based on size of MTR/ Quarter Brooklyn Center SPECIFIC IRR Rate $3.42 YES $3.42 $20.53/Quarter St. Louis Park SPECIFIC IRR RATE $4.42 NO $2.23 Wyoming Commercial Rate $3.44 YES $3.44 ¾” $41.72/Quarter 1.5”$75.08/quarter 2”$120/quarter Stillwater IRR box – Commercial HOA’s serving homes - Res, water rates are increased during the irrigation quarters $2.94 YES $2.94 TBD Oakdale COMMERCIAL TEIRS ARE MORE AGREESSIVE THAN RESIDENTIAL $2.23 YES $2.23 R – Quarterly 13.57 C – Monthly -10k Maple Grove SPECIFIC IRR RATE $2.49 NO $1.59 Per Quarter ¾” & 1” $15.90 1 ½” & 2” $31.80 3” & 4” $38.16 Larger than 4”$54.06 IRRIGATION METER WATER RATES Plymouth Separate residential irrigation meter Commercial separate irrigation meter $2.25 $2.67 YES NO R $1.79 C $2.14 R $4.96/month C $4.96/month CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 2023-_____ AN ORDINANCE REVISING THE 2023 FEE SCHEDULE FOR THE CITY OF LAKE ELMO The City Council of the City of Lake Elmo ordains: SECTION I. Schedule Adopted. The 2023 Fee Schedule is amended with the Irrigation Water Usage rates as shown below; Irrigation Meter Rate Irrigation – Quarterly Base Rate $27.33 Irrigation – Plus Rate per 1,000 Gallons Plus Rate for 0 – 30,000 $2.63 Plus Rate for 30,001 -50,000 $3.15 Plus Rate for 50,001 – 80,000 $3.79 Plus Rate for 80,001 + Gallons $4.52 SECTION II. Not Codified. This ordinance is transitory in nature and shall not be codified in the City Code. This ordinance and the fee schedule established hereby shall be placed on file and available for public inspection at City Hall. SECTION IV. Effective Date. This ordinance shall become effective for all billings rendered after adoption and publication in the official newspaper of the City of Lake Elmo. SECTION V. Adoption Date. Adopted on this 6th day of June, 2023, by a vote of Ayes and Nays. LAKE ELMO CITY COUNCIL Charles Cadenhead, Mayor ATTEST: Julie Johnson, City Clerk This Ordinance was published on the day of , 2023. Option 1 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 2023-_____ AN ORDINANCE REVISING THE 2023 FEE SCHEDULE FOR THE CITY OF LAKE ELMO The City Council of the City of Lake Elmo ordains: SECTION I. Schedule Adopted. The 2023 Fee Schedule is amended with the Irrigation Water Usage rates as shown below; Irrigation Meter Rate Irrigation – Quarterly Base Rate $ 27.33 Irrigation – Plus Rate per 1,000 Gallons $ 4.52 SECTION II. Not Codified. This ordinance is transitory in nature and shall not be codified in the City Code. This ordinance and the fee schedule established hereby shall be placed on file and available for public inspection at City Hall. SECTION IV. Effective Date. This ordinance shall become effective for all billings rendered after adoption and publication in the official newspaper of the City of Lake Elmo. SECTION V. Adoption Date. Adopted on this 6th day of June, 2023, by a vote of Ayes and Nays. LAKE ELMO CITY COUNCIL Charles Cadenhead, Mayor ATTEST: Julie Johnson, City Clerk This Ordinance was published on the day of , 2023. Option 2 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 2023-_____ AN ORDINANCE REVISING THE 2023 FEE SCHEDULE FOR THE CITY OF LAKE ELMO The City Council of the City of Lake Elmo ordains: SECTION I. Schedule Adopted. The 2023 Fee Schedule is amended with the Irrigation Water Usage rates as shown below; Irrigation Meter Rate Irrigation – Quarterly Base Rate $27.33 Irrigation – Plus Rate per 1,000 Gallons Plus Rate for 0 – 30,000 $3.63 Plus Rate for 30,001 -50,000 $4.15 Plus Rate for 50,001 – 80,000 $4.79 Plus Rate for 80,001 + Gallons $5.52 SECTION II. Not Codified. This ordinance is transitory in nature and shall not be codified in the City Code. This ordinance and the fee schedule established hereby shall be placed on file and available for public inspection at City Hall. SECTION IV. Effective Date. This ordinance shall become effective for all billings rendered after adoption and publication in the official newspaper of the City of Lake Elmo. SECTION V. Adoption Date. Adopted on this 6th day of June, 2023, by a vote of Ayes and Nays. LAKE ELMO CITY COUNCIL Charles Cadenhead, Mayor ATTEST: Julie Johnson, City Clerk This Ordinance was published on the day of , 2023. Option 3 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2023-061 RESOLUTION AUTHORIZING PUBLICATION OF A SUMMARY OF ORDINANCE 2023-13 WHEREAS, the Lake Elmo City Council has adopted Ordinance No. 2023-13, an ordinance that amends the City’s Fee Schedule related to irrigation water usage rates. WHEREAS, the ordinance is lengthy; and WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo that the City Clerk shall cause the following summary of Ordinance No. 2023-13 to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Lake Elmo has adopted Ordinance No. 2023-13, an ordinance that amends the Irrigation Water Usage Rates in the City’s Fee Schedule. . The full text of Ordinance No. 2023-13 is available for inspection at Lake Elmo City Hall during regular business hours BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of the ordinance be placed in a public location within the City. Dated: June 6, 2023 ___________________________________ Charles Cadenhead, Mayor ATTEST: ____________________________________ Julie Johnson, City Clerk (SEAL)