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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