Agenda Packets - 1992/05/26 - Laserfiche WebLink

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+ Agenda Section: 9 . 8 - -- O�G�Ds REQUEST FOR COUNCIL CONSIDERATION Report Number: 9 2-2 8 4C STAFF REPORT CounciReportl Action: 5/20/99 ��`�rvn Council Action: ❑ Special Order of Business CITY COUNCIL MEETING DATE MAY 2 6, 1992 ❑ Public Hearings ❑ Consent Agenda LSF Council Business Item Description: CONSIDERATION OF WATER CONNECTION SURCHARGE Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summary (attach supplement eets as necessary.) SUMMARY: Recently passed legislation authorizes the Department of Health to assess an annual fee of $5.21 for every service connection to a public water supply that is owned or operated by a city, town, or water district. This fee is estimated to generate $4.8 million for State water supply testing. The operator is required to collect the fees and to pay the State on a quarterly basis. The first payment is due September 30, 1992. In order to collect the fees and send them to the State by September 30, 1992 we need to bill them to utility customers with the second quarter bills(April,May,June) which are to be paid no later than August 31, 1992 . To ease the burden of this fee on customers I recommend that it be billed on a quarterly basis. I further recommend Council consider adding a 10% administrative fee to defray the expense of adding this charge to the computer system and the ongoing costs of billing for it. The annual fee with a 10% administrative charge would be $5.72 ($5.21 x 1 1. 10%) . Based upon approximately 3, 020 water connections that administrative fee would generate $1,540. on a quarterly basis the o-un- -o u1d be $1.43 . I)H-6'r------ Donald Brager, Fce Director jtECOMMENDATION; Adopt Resolution No. 4236 A Resolution Authorizing The Billing of City Utility Customers For the State Mandated Water Connection Surcharge. I