G-985 - 11/13/2012 - WATER - Ordinances Supporting DocumentsAGENDA ITEM
Regular Board of Trustees Meeting
of
November 13, 2012
SUBJECT: Water Rate Adjustment
FROM: Michael Hullihan, Public Works Director
ITEM I ox. o
BUDGET SOURCE/BUDGET IMPACT: Impacts Water Fund Revenue
RECOMMENDED MOTION: I move that the Village Board approve ORDINANCE2012-
WA -G -985 ,AN ORDINANCE AMENDING CHAPTER 5 OF TITLE 8 OF THE
VILLAGE CODE OF THE VILLAGE OF OAK BROOK, ILLINOIS RELATING TO
WATER CHARGES
Background/History.
In November 2010 a water rate study was presented to the Board setting forth the strategy for
future rate structures. The. conclusions of the study were:
• The priorities of the water CIP (Distribution and pumping facilities) are sound
• Rate increases are required to fund the CIP and maintain a reasonable cash reserve in
the water fund
• Replacement of the distribution system in out of Village service areas is imminent and
is a significant future liability
Subsequently, the Du Page Water Commission (DWC) raised our bulk water purchase rate by
10% (May 2011). In October 2011 the DWC announced rate increases of:
2012 30%
201320%
2014 18%
2015 17%
��I
In order to keep the Water Fund solvent, staff has formulated a new proposed rate structure.
The new proposed rates are:
2013 2014 2015
Resident Rate $6.28 $6.97 $7.73
Non - Resident
Rate $7.68 $8.37 $9.13
This rate structure will allow us to attain the following goals:
• Supply sufficient funds to operate and maintain the water system
• Provide enough funding to pursue capital improvements at a reasonable pace
• Allow funds to accrue for out of Village areas to allow main replacement in the
2020 -2030 time period
• Maintain a minimum of six month operational reserve
Out of Village Service Area Surcharge
The out of Village service areas which Oak Brook services include Westdale Gardens
(unincorporated Cook County), Brandywine (unincorporated Du page County), parts of Oak
Brook Terrace, and Chateau Loire /Chambord/Oak Brook Colony (unincorporated Du Page
County).
1.60
1.40
1.20
1.00
o.so
0.60
0.40
0.20
0.00
Out of Village Service Area Surcharge
2010 2011 2012 2013 2014 2015
As a result of the Water Rate Study (April 2010) a $1.00 surcharge was imposed on these areas
in 2010. The surcharge has risen to $1.40 per thousand gallons. The proposed rate structure
does not increase this surcharge above $1.40. The out of Village rate is also charged for bulk
customers who draw water from the metered hydrant at the Public Works yard.
Effective for water usage on January 1, 2013 through December 31, 2013, the Village will offer
a credit of $1.00 per month for new customers who sign up for the direct debit program. The
direct debit program automatically deducts the amount due from the customer's checking or
savings account on the due date. This program is a continuation of the direct debit program
initiated for 2012. The direct debit program is only good for a one year period after the customer
signs up. The direct debit program ensures that the Village will receive payments timely and
reduces costs associated with the payment lockbox service, reminder notices, staff follow -up
calls, etc. $600 is budgeted for 2013 for this program.
Recommendation:
I recommend approval of the attached water rate increase ordinance.
ORDINANCE 2012 -WA -G -985
AN ORDINANCE AMENDING CHAPTER 5 OF TITLE 8 OF THE
VILLAGE CODE OF THE VILLAGE OF OAK BROOK, ILLINOIS
RELATING TO WATER CHARGES
WHEREAS, the President and Board of Trustees of the Village of Oak Brook, Illinois have
heretofore, by ordinance established rates, fees, and service charges for water usage; and
WHEREAS, the President and Board of Trustees deem a revision of the water rates, fees, and
charges, and the passage of this Ordinance to be in the best interest and in pursuance of the general
welfare of the Village;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: That Section 8 -5 -2 -G of the Village Code of the Village of Oak Brook, Illinois be and is
hereby deleted in its entirety and replaced as follows:
G. Water Consumption Charges
1. A monthly service charge of seven dollars and thirty -three cents ($7.33) per customer
account is hereby imposed, effective for any billing periods after January 1, 291-2 2013.
2. Effective January 1, 2912 21173 water shall be charged at the rate of five six dollars and
siI five twenty eight cents ($5.95 8.2$) per thousand gallons for customers in the
corporate limits of the Village of Oak Brook and at the rate of seven dollars and five
sixty -eight cents ($7.95 fib) for customers outside the corporate limits of the Village of
Oak Brook.
3. Effective January 1, 2942 2013 water drawn from the hydrant at 3003 Jorie Boulevard
shall be charged at a rate of seven dollars and five cents ($7.05) per thousand gallons.
_ INFIRM - _ . .. - . -. .. 111 ..I - 1 _
! n 1 l M 111F
• 1 • 1
•11 ! .1 "• • 11'1 1 1 1 1• �•.
Section 2: That all ordinances in conflict with the provisions of this Ordinance are hereby
repealed to the extent of such conflict.
Section 3: That this Ordinance shall be in full force and effect from and after passage, approval
and publication, as provided by law.
Section 4: The Village Clerk is hereby authorized and directed to publish this Ordinance in
pamphlet form as required by law.
APPROVED THIS 13th day of November, 2012.
PASSED THIS 13'" day of November, 2012.
Gopal G. Lalmalani
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk
Ordinance 2012 -WA -G -985
Water Rates 2013
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