Title
AN ORDINANCE AMENDING SECTION 1040.14 OF THE CODIFIED ORDINANCES, REVISING WATER RATES FOR WATER SERVICE PROVIDED TO CUSTOMERS OUTSIDE OF CITY LIMITS
Brief Description: This Ordinance will amend the City’s water rates to charge an additional 50% to the water rates for customers outside of City limits unless an agreement setting other rates exists. The additional 50% to be charged will be the City of Hudson or the City of Cleveland rate, whichever is greater.
Body
Legislative History
Ordinance 22-147 amended the City’s water rate to blend two rates into a single rate as well as approve multi-year rate increases.
Purpose & Explanation
As part of the water rate study, CT Consultants was asked to determine an additional rate to charge for customers outside of Hudson City limits. As presented to City Council at the April 25, 2023 workshop, an additional 50% was the recommended increase. Further, it was recommended the increase be the greater of the City of Hudson’s water rate or the City of Cleveland water rate charged to Hudson. The surcharge will apply to all rates, fees, and charges applicable for the supply of water to customers located outside of the corporate limits of the City. These are set forth in 1040.01(a)(1) (rates), 1040.01(a)(2)(volume fees), 1040.01(a)(3)(capital maintenance fee), 1040.05 (connection charges), 1040.053 (street opening fee), 1043.03 (water and sewer investment fees). Cleveland’s applicable water rate and fees are set forth in Cleveland Codified Ordinance sections 535.04(a)(4), (c).
There is to be no “grandfathering” of outside customers unless an agreement is in place. There are currently nine City of Hudson water accounts outside of City limits. One account (Boy Scouts of America) has a written agreement with the City that it will be charged “normal tap in fees, connection fees and water rates as shall be applicable to similarly situated applicants in Hudson”. Therefore, all current outside customers will be charged an additional 50% except the Boy Scouts of America account.
Staff will formally notify the impacted customers and the date of the public hearing via direct mail.
The recommended timeline is as follows:
May 23 - workshop, include draft legislation
June 6 - first reading, set public hearing
June 7 - mail letters to impacted customers
June 20 - public hearing, second reading
July 4 - no meeting (holiday)
July 11 - third hearing, passage (assumed) - the current plan is both a regular and workshop meeting on July 11 (subject to change by Council)
Aug 10 - 30 days after passage
Sep 10 - first due date with new rates
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
X No
Recommendation
Suggested Action
Staff recommends City Council approve the revised water rate for customers outside of Hudson City limits. Council should set a public hearing date as part of the first reading.
Submitted by,
Thom Sheridan, City Manager
Jeff Knoblauch, Asst City Manager/Finance Director
Brian Griffith, Director of Budget & Management