By Myrna Trauntvein
Times-News Correspondent
In the work session on April 9, the city council examined the options for changes in some utility rates and documentation was provided at Tuesday’s council meeting to make the necessary changes. However, it was decided by the council not to just double the cost for using the stock pipe from $150 per season to $300 per season. It was decided that the city should put in a card reader and a meter so that users paid for the water they actually used. Seth Atkinson, city administrator, said that the stock water fee could be doubled, as had been suggested, or it could be metered. “I think the card reader is the best way because it is more equitable,” said Skip Worwood, council member. Larry Ostler, council member, said that a $300 flat rate was still a bargain. He knew of one person who filled his tanker in Nephi and then took the water out of the county to use at his business. However, he said, the city did not know what the card reader would cost. “I think that $300 is a drop in the bucket for someone who uses the water and makes millions,” Kent Jones, council member said. Rust Finlinson, power superintendent, said that using the meter would also promote conservation. “I support the meter,” said Justin Seely, council member. Atkinson said that the meter would be paid for over time by the users actually paying for the water they took from the pipe. That initial expense would be recovered by the city. The change in the stock pipe water usage will mean that the master fee agreement adoption will be addressed at the first council meeting of May. The first rate that was examined was from the Electric Fund. “Due to fluctuations in wholesale pricing, the costs of providing electric service have sometimes exceeded collected revenues,” said Atkinson. “Many cities, including those in the UMPA group, have instituted something called a ‘power cost adjustment’ or PCA.” This is basically a premium charge instituted on the wholesale charge for power. This PCA would contain an operating and capital component, said Atkinson. The operating component would be enough to fund personnel, materials, debt service, and smaller capital projects. “The capital component would consist of enough funding for larger capital projects such as line extensions, new or replacement substation equipment, and vehicles,” said Atkinson. He said that the staff was proposing instituting a PCA on the electrical rates. In addition, since rates have not been updated since 2014, staff is also recommending an update to the customer and energy charges as well as a structural change to the tiered system on the commercial combination rate. These changes will help the electric fund weather the fluctuating wholesale market rates as well as provide customers with an opportunity to feel the impact of decreasing wholesale rates, similar to the Natural Gas fund. “Another rate that was discussed at the April 9 work session was the city’s sewer rate,” said Atkinson. “This rate has not seen changes in decades.” There are several upcoming capital needs that will need to be addressed, he said, and a change in the sewer rate will assist the city in meeting those needs. Some of those capital needs are: 1) Pipe replacement or new pipe lining on aging or damaged sewer lines, 2) Planning for a fourth sewer pond, and 3) Savings for a vac truck replacement. “The vac truck is a valuable piece of equipment and is used, to a lesser degree, by other departments,” Atkinson said. The update in the sewer rate will help to correct some of these capital needs. “With regard to the water fund,” said Atkinson, “the volume charges for industrial users was not included as part of the increase that was instituted last year.” He said that the staff was proposing a modest increase in the industrial rates along with an increase in the stock watering rate. These increases will continue to assist the water fund with the infrastructure upgrade project that is occurring at this time. “A final fee that is proposed to change is the non-subdivision and subdivision natural gas connections,” said Atkinson. “Current costs exceed the current charges. The proposed change updates the fee to cover all costs for the natural gas connections.” “I don’t want to ding the developers so much that they go somewhere else,” said Jones. The following master fee resolution proposal incorporates each of the proposed rate changes. Water rates for the four-inch line has a customer service charge of $226.48 for tier seven. The bottom of the tier is 1,000,001 and the top of the tier is 5,000,000 with a usage rate per 1,000 gallons of $0.5000. Water rate charge for the six-inch line has a customer service charge of $452.96 for tier eight. The bottom of the tier is 5,000,001 and the top of the tier is 99,999,999 with a usage rate per 1,000 gallons of $0.6000, Sewer Rates for residential use has a Customer Service Charge of $8.50 and a Commercial / Industrial Customer Service Charge of $9.50. Non-Subdivision Connection for Natural Gas is $1,700 if the city digs and provides sand. Non-Subdivision Connection Natural Gas, is $1,550 if the customer digs and provides sand. Subdivision Connection Natural Gas is $1,500 if the city digs and customer provides sand. Subdivision Connection Natural Gas is $1,350 if the customer digs and provides sand. Category Residential Electric Rate No. 1, is subject to monthly charges and to PCA monthly charges. Customer Service Charge, fee $7. Residential Electric Rate No. 1 Energy Charge $0.00885/KWH. All the following are subject to monthly charges and to a PCA monthly charge: Commercial Electric Rate No. 6 Customer Service Charge is $10. Commercial Electric Rate No. 6 Power Charge is $9.71 per KW. Commercial Electric Rate No. 6 Energy Charge for first 500 KWH of $0.1309/KWH. Commercial Electric Rate No. 6 Energy Charge next 9500 KWH of $0.0647/KWH. Commercial Electric Rate No. 6 Energy Charge Remaining KWH - $0.0490/KWH. Large Customer Electric Rate No. 7 Customer Service Charge $50. Large Customer Electric Rate No. 7 Power Charge $13.69 per KW. Large Customer Electric Rate No. 7 Energy Charge $0.0428 per KWH. High Voltage Electric Rate No. 8 Customer Service Charge $50. High Voltage Electric Rate No. 8 Power Charge $13.69 per KW. High Voltage Electric Rate No. 8 Energy Charge $0.0365 per KWH. Irrigation Electric Rate No. 14 Customer Service Charge $15. Irrigation Electric Rate No. 14 Power Charge $13.69 per KW. Irrigation Electric Rate No. 14 Monthly Charges Energy Charge $0.0476 per KWH. Commercial Combination Electric Rate No. 21 Customer Service Charge $10. Commercial Combination Electric Rate No. 21 Energy Charge $0.1076 per KWH.
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