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City of Puyallup

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AI- 3502   11.    
City Council Agenda
Meeting Date: 02/05/2013  
Subject:    Elimination of Usage Rate Surcharge for Water & Wastewater Customers who are Located Outside City Limits
Presenter: Kevin Yamamoto
Department: City Attorney's Office  

Information
Recommended Action
Conduct first reading of an ordinance that amends to Appendix A to Title 14 of the Puyallup Municipal Code (PMC), PMC 14.01.030 and PMC 14.22.060 to eliminate the usage rate surcharge for water and wastewater customers who are located outside city limits.
Background
In 2004, the City, under Ordinance No. 2806, imposed a usage rate surcharge for water and wastewater customers who are located outside city limits.

After significant inquiry, discussion and debate spanning a number of years, and most recently occuring at its January 15, 2013 study session, the City Council called for elimination of the usage rate surcharge for water and wastewater customers who are located outside city limits.  The City Council determined that use of a cost allocation model, rather than a usage rate surcharge, would sufficiently satisfy the requirements of RCW 35.92.010.
Previous Actions (Discussions/Presentations)
As noted above, councilmembers have engaged in significant inquiry, discussion and debate over a number of years after the passage of Ordinance No. 2806 in 2004.  Most recently, the Council held a study session on January 15, 2013 to address system development charges and usage rates.
Summary of Proposal
The proposed ordinance that accompanies this agenda bill eliminates the surcharge for water and wastewater customers who are located outside city limits.  Specifically, the proposed ordinance amends Appendix A to Title 14 of the Puyallup Municipal Code, PMC 14.01.030 and PMC 14.22.060.
Alternatives/Options
The City could, as it has done, use surcharges to satisfy the requirements of RCW 35.92.010.  Nonetheless, the City Council has chosen to use a cost allocation model rather than usage rate surcharges.

Fiscal Impact
Attachments
Ordinance
Appendix A

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