Council Minutes 10/21/1974
I
o
';x)
~
CO
U;.J
C.tJ
I
I
85
so there was no official recommendation on this. After considerable discussion
by the Council and advice from the city's legal counsel, it was decided that the
policy recommended in the proposed resolution. was sound and could be used as
a ba&is for reviewing the outside-the-city water rates from time to time, and that
the resulting rate should become effective immediately. Consequently, the follow-
ing resolution was adopted by the motion of Councilman Hirschi which was seconded
by Councilman Cheney, with the voting unanimous in favor:
RESOLUTION RELA TING TO THE CHARGES FOR WATER USERS
OUTSIDE THE CI TY OF AMM ON
WHEREAS,. it is the intention of this resolution to provide an equit-
able formula to establish a rate schedule for outside -t he -city-water-
users based on actual average monthly cost;
AND WHEREAS,. it is intended that in addition to the average. monthly
cost, that outside-the -city-water-users shall pay a prorated share
for the Water System Improvement Project (WSIP) constructed in
1973-1975;
AND WHEREAS, in addition to the above two categories of costs, the
outside -the -city-water -users shall pay an incremental fraction above
the basic monthly operations costs to .cover repair, replacement,
maintenance costs, and operating expenses on the water system connecting
such users to the city water system;
AND WHEREAS, the City of Ammon owning and maintaining the water
system incurs costs which are separable into categories such as operat-
ing expenses and capital improvement, and the operating cost for cal-
endar year 1973 was $4.64 per connection (maintenance and repair costs
are included in these operating expenses, and are generally covered by
the monthly charges to each water user--city residents $5.00, outside-
the-city water users $5.50 at the pres~nt time);
AND WHEREAS, in the event that expenses in anyone year exceed the
revenues from that year, the deficit al'ld general overhead is made up
from the general fund of the City, established through the property
tax on city residents, and since water users' outside the City of Ammon
do not contribute to the general fund, a charge in excess of the annual
per user operating cost is reasonable and equitable and this incremental
cost is to be set at thirty per cent (30%) of the average monthly operat-
ing cost for each :user, for the previous calendar year, as derived from
the water water system cost reported in the annual audit;
AND WHEREAS, based on estimates of the completed costs made by
the City Engineer, and ammortizing the project costs over forty years,
the per month/per user cost for the Water System Improvement Project
is $4.08;
NOW THEREFORE BE IT RESOLVED that, based on the above consid-
erations, the monthly charge for water users outside of the City of
Ammon shall be determined on the basis of the following formula:
Monthly Charge:: $4. 08 + (Monthly Operating Cost x L 3)
rounded to the nearest 1/4 dollar
The monthly operating cost shall be determined by the annual audit
cost of the system divided by the average montily connections and
divided by twelve (12). This annual cost shall exclude costs of
ammortization of the WSIP of 1973-1975 even if reported as part of
the totaL
FUR THER RESOLVED that such charges shall commence with the
November 1, 1974, billing, which is for the month of October, 1974.
Mayor Turnbow reported on the progress of situations regarding funds for the sewer
and water project. Engineer Benton explained that there has been a stop put on
is suing permits for making connections to the sewer system until a final inspection
has been completed. There was a discussion by the Council pertaining to the 70-day
policy for starting to charge the residents for sewer service. It was felt that this
policy should be flexible at this time due to being held up on is suing permits.
Councilman Swensen suggested that a grace period should be granted by cutting off
the counting on the 70 days when weather prohibits any hookups then starting
to count again when the weather breaks.
At the request of Mayor Turnbow, the Council considered granting an easement to
allow a sewer line to be installed on city property at Lions Park for the adjoining
property. Councilman Swensen moved that an easement be granted for the owner