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G-1012 - 11/12/2013 - WATER CHARGES - Ordinances Supporting Documents ITEM IO.B.4) OF OAA- 0 0 Go e e ©UNI AGENDA ITEM Regular Board of Trustees Meeting of November 12, 2013 SUBJECT: Water Rate Adjustment FROM: Michael Hullihan, Public Works Director BUDGET SOURCE/BUDGET IMPACT: Impacts Water Fund Revenue RECOMMENDED MOTION: I move that the Village Board approve Ordinance G-1012, 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% 201418% 2015 17% 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). Out of Village Service Area Surcharge 1.60 1.40 1.20 1.00 0.80 0.60 , 0.40 0.20 i 0.00 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. For water usage on January 1, 2014 through December 31, 2014, the Village will continue to offer a credit of$1.00 per month for customers who are currently in the direct debit program or 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. 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. Recommendation: I recommend approval of the attached water rate increase ordinance. ORDINANCE 2013-WA-G-1012 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 ($743) per customer account is hereby imposed, effective for any billing periods after January 1, 2014. 2. Effective January 1, 2014 water shall be charged at the rate of six dollars and ninety- seven cents ($6.97) per thousand gallons for customers in the corporate limits of the Village of Oak Brook and at the rate of eight dollars and thirty-seven cents ($8.37) for customers outside the corporate limits of the Village of Oak Brook. 3. Effective January 1, 2014 water drawn from the hydrant at 3003 Jorie Boulevard shall be charged at a rate of eight dollars and thirty-seven cents ($8.37) per thousand gallons. 4. Any customer who, between January 1, 2014 and December 31, 2014, agrees to pay the Village of Oak Brook by direct debit payment for any fees charged pursuant to this Section 8-5-2-G shall receive a one dollar ($1.00) discount off of each invoice issued during the one year period from the date on which the customer first signed up for direct debit payment. This discount shall not apply to any customer who has made payments to the Village of Oak Brook prior to January 1, 2014 by direct debit for fees charged pursuant to this Section 8-5-2-G. 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. Ordinance 2013-WA-G-1012 Water Rates 2013 Page 2 of 2 APPROVED THIS 12th day of November, 2013. Gopal G. Lalmalani Village President PASSED THIS 12th day of November, 2013. Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk