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'
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending Section
3.18.020, entitled `Certain utilities subject to tax,"
to reallocate the internal utility taxes; amending
rates in Section 7.02.180 entitled "Temporary
water meters"; combining Sections 7.02.300 and
7.02.310 entitled "Water rates," to increase rates
and charges for all water service, whether within or
outside the city; and amending Section 7.04.220
entitled "Schedule of charges for service,"
increasing the sewer rates.
RECITAL
A. The city last established its water and sewer rate structure in
2008. Since that time, other municipal water and sewer providers have
restructured their rates by more proportionately distributing overall system
usage by balancing potable water consumption, water meter size, and
non -potable fire protection standby reserves for sprinkler systems and
other fire protection systems. Sewer rates were also adjusted accordingly.
B. After conducting a system review and rate analysis, the city
similarly has determined to adjust its water and sewer rate structure,
including combing the rate structure to create single, uniform rates for all
city water service. A new rate is also included for dedicated firelines,
which will pay for the water capacity and pressure needed to operate these
systems when fire protection is needed.
1 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
C. Increased operational costs have occurred since the city's
water and sewer rates were last amended, and in order to maintain and
operate the city's water and sewer systems at existing levels of service,
rates for city water and sewer services are increased.
D. To accommodate ongoing cost increases after implementation
of these rate changes, an annual cost of living increase has been added
based on the regional consumer price index (CPI), with increases capped
until January 1, 2023, at 2.4% or the CPI, whichever is less, with increases
after that date to conform to the CPI without any cap.
E. Disposition and allocation of the city's water, sewer, and
storm utility tax revenue, which is imposed on each utility's gross receipts,
has been amended and clarified to conform to existing practice.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Amendment. Section 3.18.020 of the Kent City
Code, entitled "Certain utilities subject to tax," is hereby amended as
follows:
A. In addition to the other business and license fees required by the
ordinances of the city, the city levies upon all persons, firms, or
corporations (including the city) engaged in certain business activities a
utilities tax to be collected as follows:
1. Upon every person, firm, or corporation engaging in or
carrying on any telephone business within the city, an annual tax equal to
six (6) percent of the total gross income, including revenues from
intrastate toll, derived from the operation of such business within the city.
2 ,4mend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
This six (6) percent tax will be allocated as follows: four and seven -tenths
(4.7) percent to the general fund, three -tenths (0.3) percent to
youth/teen programs, and one (1) percent to street improvement
programs.
2. Upon every person, firm, or corporation engaging in or
carrying on a business of selling, wheeling, furnishing, distributing, or
producing gas, whether manufactured or natural, for commercial or
domestic use or purposes, a fee or tax equal to six (6) percent of the total
gross income from such business in the city during the tax year for which
the license is required. This six (6) percent tax will be allocated as follows.
four and seven -tenths (4.7) percent to the general fund, three -tenths
(0.3) percent to youth/teen programs, and one (1) percent to street
improvement programs.
3. Upon every person, firm, or corporation engaged in or
carrying on the business of selling, wheeling, furnishing, or distributing
electricity for light and power, a fee or tax equal to six (6) percent of the
total gross income from such business in the city during the tax year for
which a license is required. This six (6) percent tax will be allocated as
follows: four and seven -tenths (4.7) percent to the general fund, three -
tenths (0.3) percent to youth/teen programs, and one (1) percent to
street improvement programs.
4. Upon every person, firm, or corporation engaged in or
carrying on the business providing cable television services, a tax equal to
six (6) percent of the total gross income from that business in the city
during the tax year for which the license is required. All revenue received
from this tax must be applied only to funding the city's information
technology department operations and capital projects budgets in the
proportion determined by the city council in its biennial budget, including
all amendments.
3 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
5. Upon every person, firm, or corporation engaging in or
carrying on a business providing solid waste collection services, a tax
equal to eighteen and four -tenths (18.4) percent of the total gross income
from such business in the city during the tax year for which the license is
required. This eighteen and four -tenths (18.4) percent tax will be allocated
as follows: six and one-half (6.5) percent to the general fund, three -tenths
(0.3) percent to youth/teen programs, one (1) percent to street
improvement programs, and ten and six -tenths (10.6) percent to maintain
and repair residential streets, including related impacts to curb, gutters,
sidewalks, and other road amenities, but this ten and six -tenths (10.6)
percent portion of the solid waste utility tax shall not be used to expand,
extend, or widen existing residential streets or to build new residefitial
streets.
6. Upon every person (including the city) engaging in or
carrying on the business of selling, furnishing; or distributing water
services, seweF, eF drainage s iees, a tax equal to thirteen (13) percent
of the total gross income from that business in the city during the tax
year; upon every person (including the city) engaging in or carrying on the
business of selling, furnishing, or distributing sewer services, a tax equal
to nine and one-half (9.5) percent of the total gross income from that
business in the city during the tax year; and upon every person (including
the city) engaging in or carrying on the business of selling, furnishing, or
distributing drainage services, a tax equal to nineteen and one-half (19.5)
ep rcent of the total gross income from such business in the city during the
tax year. Unless otherwise directed by the city
council in its budget process, Tthe total of these taxe-s revenues will be
allocated as follows: forty three and eight
five one -hundredths f4aja5 percent (43.85%) to the general fund for the
use as allocated in the city's budget; four J4 thirty and seventy-seven
one -hundredths f39,7:7j percent (30.77%) to the general ,.tre t capital
resources fund enly fer the installation, eperatien, maintenanee, and
4 Amend OCCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and VI/ater Rates
subject to the limitations provided in subsection
(A)(6)(a) of this section; fifteen and thirty-eight one -hundredths
we(2)percent (15.38%) dedicated solely to the repayment and
elimination of debt in the city's "other capital projects" fund subject to the
limitations provided in subsection (A)(6)(b) of this sections one (}seven
and sixty-nine one -hundredths—(- percent (7.69%) to street
improvement programs; and two and thirty-one one -hundredths
hree tenths (0.3) percent 2.31% to youth/teen programs.
Unless otherwise allocated by council, these
emaining funds must be applied equally to (i) information technology
capital programs directed at funding long- and short-term hardware and
software replacement and (ii) street capital programs, but further
restricted to funding street maintenance, repair, and signage only.
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b. The �ave--(}fifteen and thirty-eight one -hundredths
percent .(15.38%
internal tax allocation will be dedicated to the
city's capital t►9revengetsresources fund for the sole purpose of retiring
all debt in the city's other capital projects fund; however, in any event
this tare {)peFeentportion of the tax shall be eliminated on January 1,
2023, or on the first day of the year following the date the debt in this
fund is fully retired, whichever occurs first.
B. In computing the tax provided in subsection (A) of this section, the
taxpayer may deduct from total gross income the following items:
5 Amend KCC 3.18.020, 7.0-,4.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
1I The actual amount of credit losses and uncollectible
receivables sustained by the taxpayer.
2. Amounts derived from transactions in interstate and foreign
commerce which the city is prohibited from taxing under the laws and
Constitution of the United States.
SECTION 2. -Amendment. Section 7.02.180 of the Kent City
Code, entitled "Temporary water meters," is hereby amended as follows:
Sec. 7.02.180. Temporary water meters.
A. When water service is required for a specific short-term duration,
upon approval of the director of public works, a temporary water meter
may be obtained from the water utility.
B. such meters shall only be used for a designated project and shall be
promptly returned to the water utility upon completion of the project or at
the end of sixty (60) days, whichever comes first. The meters are to be
returned in the same condition as when rented, and the user shall be held
responsible for any damage thereto including paying all repair or
replacement costs. While in the user's possession, the user shall be solely
responsible for the meter and as such, should it be lost or stolen, the user
shall pay the water utility the cost of its replacement.
C. The director of public works shall require that a cash bond be
deposited with the city prior to receipt of a temporary meter. The amount
of the bond shall equal the replacement cost of the respective meter. Upon
return of the meter, the payment of all outstanding charges including any
meter repair or replacement costs, the cash bond shall be released back to
the user.
6 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Rer Sewer and Water Rates
D. Temporary meters may be moved from one (1) hydrant to another
within the same project, provided, the water utility is notified in advance
of the proposed relocation and that hydrant wrenches are used to make all
connections and disconnections.
E. For each 100 cubic feet of water used with a temporary water
213111 999 $2-40
X993 $�?4
8V91/2894 $2 -*54
9a /8U2095 $2-167
All rates are also subject to a one-time temporary meter charge as follows:
1. Up to one and one-half (1-1/2) inch meter, fifty dollars ($50);
2. Two (2) inch and larger meter, one hundred dollars ($100).
Payment shall be made in full upon return of the meter. If a meter is lost
or stolen, payment for water used shall be based on an estimate made by
the director of public works.
SECTION 3. -Amendment. Section 7.02.300 of the Kent City
Code, entitled "Water rates within the city," is hereby amended as follows:
Sec. 7.02.300. Water rates • �OLFIIII X11
A. Water rates. The following staggered monthly rates apply during the
to all water customers within served by the city Within eaeh tinge peri d.
�i-mss—of Kent. The lower rate applies per 100
7 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and (Nater Rates
cubic feet of water used €e-�up to or equal to x$00 cubic feetper month,
end the higher rate applies per 100 cubic feet of awater used in excess
of X800 cubic feet:
WATER USE/CONSUMPTION
Winter/Summer
<=800cf: $2.40
>800cf: $4.73
All customers are also subject to a monthly demand charge for
potable water service., dedicated fireline service, and water meters. For
purposes of this chapter, a "dedicated fireline" constitutes the pipe(s) and
appurtenances on private property that only supply water to the system
riser for water-based fire protection systems, private hydrants, monitor
nozzles, fire pump suctions, and tanks. The dedicated fireline begins after
the property isolation device, and it contains water that will be used only
when needed for fire protection purposes and so will become stagnant and
non -potable. The fees for these monthly demand services ares-i�--is as
follows:
8 Amend LCCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
,.
.�
.�MRIM,,
All customers are also subject to a monthly demand charge for
potable water service., dedicated fireline service, and water meters. For
purposes of this chapter, a "dedicated fireline" constitutes the pipe(s) and
appurtenances on private property that only supply water to the system
riser for water-based fire protection systems, private hydrants, monitor
nozzles, fire pump suctions, and tanks. The dedicated fireline begins after
the property isolation device, and it contains water that will be used only
when needed for fire protection purposes and so will become stagnant and
non -potable. The fees for these monthly demand services ares-i�--is as
follows:
8 Amend LCCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
Meter size
Dedicated
or, for
Residential
Commercial
Fireline Charge
Dedicated
Charge Effective
Charge Effective
Effective
Fireline,
January 1,
A�r�Iuary 1,
ua
jun Jan 1,
Pipe size
201788
201788
201709
'inches)
—
5/6 x 314
$5 2-6
$�8a
$6-95
53/4
$23,15
29.10
$2,75
1
$8:9436.25
$10,2842.20
$15:243.21
1-1/4
4.81
1-1/2
$44,6469.00
$1506974095
$230226042
2
$16089108.30
$20489114.25
$39 810.27
3
$38,35173.80
$44819179.75
$65 725.67
4
$46-047-Z65450
$53644271.45
$951.33
6
$69,03
$79t38402445
$447:46102.67
8
$66050
$661533.45
$1-58:83173.25
10
$113:03
$196664.45
$17256.67
Meter -size
Ch arge Cff.'tiCharge
-€#ee
Charge Cfe '
Charge
sf-{Gf
,
(inGhe)January
1, 2
Ja.,,. pl 201-2January
1, 2013Jan
uati-
2-a4
5/8 x 3/4
$11:99
$1135
$12-72
$1-3:18
4
$20,37
$20,98
$21964
$2126
1-1/2
$31-09
$32003
$32,99
$33-1-98
2
$41R22
$42R46
$43,73
$45084
3
$87,39
$90,82
$92072
$95:50
4
$405-90
$io908
$112035
$115,72
6
$157:31
$462-03
$-186.89
$471690
9 Amend ICCC 3.18.020, 7.04.220, and
Ch. 7,02 KCC Re: Sewer and Water Rates
Meter size
2018-2022
1/01/2005
Dedicated
$0.51
or for
Residential
Commercial
the
adjustment
$0.54
1/01/2011
Fireline Charge
1/01/2012
Dedicated
Charge Effective
Charge Effective
2.4%
of
Fireline,January
1,
AprilJanuary 1,
Effective
water
JuneJanuary 1,
Pipe size
201798
201708
rate,
201799
after
(inches)
—
1, 2023, any
$291 070
$28775
8
$228:40
a-9
$267-53
$265031
$'�7
$281A7
Beginning January 1, 2018, and on the first day of each calendar
year thereafter, the total water rate for consumption, meters, and
dedicated fireline usage will adjust by the Consumer Price Index (CPI),
specifically the CPI -W Seattle-Tacoma-Bremerfion, measured from June 1
through June i of the previous calendar year, if the CPI -W reflects an
upward adjustment from the previous annual June to June period. For the
years
2018-2022
1/01/2005
$0.51
6/01/2009
$0.53
the
adjustment
$0.54
1/01/2011
will
1/01/2012
not
exceed
2.4%
of
the
total
water
rate,
but
after
that, beginning
January
1, 2023, any
increase in
the CPI will
not be subject to this 2.4% limit. In order to simplify the rate -making
structure, the finance director is authorized to amend the rate each year to
reflect the CPI adjustment.
B. Lifeline customers. The city council will establish eligibility criteria for
lifeline customers. For lifeline -qualified water service customers within the
city limits, the following rates apply for water use per 100 cubic feet:
Effective Date
January 1 -December 31
1/01/2005
$0.51
6/01/2009
$0.53
1/01/2010
$0.54
1/01/2011
$0.56
1/01/2012
$0.57
10 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re; Sewer and Water Rates
Effective Date
January 1- December 31
1/01/2013
$0.59
1/01/2014
$0.61
All lifeline rates are also subject to the monthly demand charge for
service and meter as set forth in subsection (A) of this section.
SEC7'lOIN 4. -Repealer. Section 7.02.310 of the Kent City Code,
entitled "Water rates outside city," is hereby repealed in its entirety.
SECT-%OIV S. -Amendment. Section 7.04.220 of the Kent City
Code, entitled "Schedule of charges for service," (which was codified as
section 7.04.280 until recodified into a new section number by a separate
ordinance enacted as of the same date this ordinance) is hereby amended
aC:
follows:
Sec. 7.04.220. Schedule of charges for service.
12&?Wslpw��W� k � WG! 1 A
sewer service charge for regional sewage treatment. These charges are
passed through, without increase, directly to the city sanitary sewer utility
customers. The King County pass-through charge for 20173 is known and
established. It is expected, however, that King County will increase its
pass-through charge over time. Accordingly, except for the 2017
3 charge,
all other King County charges are estimates only. In order to simplify the
rate -making structure, the finance director is authorized to amend King
County's pass-through charges at the time King County imposes new
charges.
i l Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and V4�ater Rates
Beginning January 1, 2018, and on the first day of each calendar
year thereafter, the total sewer rate will adjust by the Consumer Price
Index (CPI), specifically the CPI -W Seattle -Tacoma -Bremerton, measured
from June 1 through June 1 of the previous calendar year, if the CPI -W
reflects an upward adjustment from the previous annual June to June
period. For the years 2018-2022 the adjustment will not exceed 2.4% of
the total sewer rate, but after that, beginning January 1, 2023, any
increase in the CPI will not be subject to this 2.4% limit. In order to
simlify the rate -making structure, the finance director is authorized to
amend the rate each_year to reflect the CPi adjustment.
In addition, the year 2017 City rate for all types of service is subject
to any CPI or Kina County rate increases; for the year 2018 the City rate
will increase one -dollar and twenty-five cents (1.25) in addition to any CPI
or King County rate increases; and for the year 2019 the City rate will
increase fifty cents (.50)
in addition to any CPI or King County rate
increases.
The following. sanitary sewer service charges for city sanitary sewer
service inside the city limits are in effect on the dates and in the amounts
listed below. Sewer service charges for customers residing outside the city
shall be the charges as on file in the cit clerk's office.
12 Amend OCCC 3.18.020, 7.04.220, and
Ch. 7.02 /CCC Re: Sewer and Water Rates
400
EMAE7�
LEI
1. .-
residential
dwelling, as
.- •�
effi-. hrftag
12 Amend OCCC 3.18.020, 7.04.220, and
Ch. 7.02 /CCC Re: Sewer and Water Rates
Type of Service
ChotWe:qm�
a bL tL6....a:...
Gtde..b:.... a
Kino
ort
County Sewer
Sewer Rate
Sewer Rate
Ratet
rate
2. Two-family or
multiple -family
residential
dwelling, as
defined in Chapter
$22.16
44.22
$64,90
15.02 KCC, each
unit separately
metered and
charged.
® Glt- ;T
M -n j_j- 1
n*1'1 nG
M..
*1 o GO
$ 22
MM^^44^^
i nty gGeu
a King
9eweF rate "`I
rF7n i,
39,794 *
r '1
$39,7944:22*
�h']n AA 21a&
r
M Tetal' sewer
$ fi %QF);1 11G�
OT7PJT�tl"`
i� C 7 5
8647
$ ff
Mao^
3. Single-family
residential/lifeline;
eligibility criteria
for the lifeline
$12,70
44.22
$56,92
utility rate set
forth in KCC
7.01.0800
rate
oKing unty
sewer rate
$39V79
391 n o2*
r d ;79
�o��
$39 7911 *
ON T—Tetal seweF
$'5, '9'
'$'5'2,64
$5208v
rate
4. All other than
$8.65*q-.61: per
$8.820*} per
$8.88 88*} per
service types 1, 2
100 cubic feet
100 cubic feet
100 cubic feet
and 3 shall be
per month
per month
per month
billed in
accordance with
the consumption
of water and at
the following
rate,* except that
no monthly bill
shall be less than
the single-family
residential rate
set forth in
service type No,
1.
1" Estimated, based on adjustments issued by King Count
* Beginning January 1, 2018, this rate will adjust annually based on the basic rate shown for
service types 1 and 2 above, calculated on this formula: Total Sewer Rate/7.5 = price per 100 cubic ft.
per month.
13 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and vV/ater Rates
SECTION of - Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
SECTION 7. -Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTI®N 8. - Effective Date. Although the fees, rates, and
charges established by this ordinance do not take effect until January 1,
2017, this ordinance shall take effect and be in force 30 days from and
after its passage, as provided by law�,,�-� "-
COOKE, MAYOR
ATTEST:
SUE HANSON, INTERIM CITY CLERK
APPROVED AS TO FORM
T01 BRUBAKER, CITY ATTORNEY
PASSED: I. day of _ t�� _, 2016.
APPROVED: day of r, t , 2016.
PUBLISHED: day of _" W _ , 2016.
14 Amend KCC 3.18.020, 7.04.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
P:\clvll\Ordlnanre\7 04 and 3 IB Sewer Nate inaease.do«
15 Amend KCC 3.18.020, 7.D4.220, and
Ch. 7.02 KCC Re: Sewer and Water Rates