This report proposes minor changes to the wastewater monthly service fee, eliminating the
special rate for Country West Mobile Home Park and providing for an alternate initial rate for Multi-Family Housing where water is provided by the Town of Chino Valley based upon historical water use.
The Town of Chino Valley last reviewed and increased water and wastewater rates on February 12, 2013. Resolution 13-1005 adopted a 5 year rate increase schedule for both water and wastewater rates. On December 8, 2015 the Town Council approved Resolution No. 15-1071 deferring the effective date of the sewer rate increase scheduled to become effective on January 1, 2016 to July 1, 2016, keeping the rate at $64.14 until July 1, 2016.
At the time of adoption of the last sewer rates, the Town had few multi-family housing developments. The Town recently began to see interest in multi-family housing projects. The last adopted rate schedule did not adequately document the method used to calculate the user fees and connection fees for multifamily housing, resulting in inconsistent practices when setting rates for such developments.
On January 10, 2017 Council modified the rate schedule to provide additional clarification on how rates are applied to multi-family developments. The rates are based on equivalent dwelling unit/fixture unit calculations, either by estimating the fixture units or by actual count. These are the methods historically used by the Town to determine the rates for all multi-family housing, except Country West. At the time Country West connected to the sewer in 2008, it was the only multi-family sewer user connected to the sewer and provided a rate based on commercial uses. Staff believes this was an error and can provide no justification for the Town to treat Country West differently from all other multi-family users now that the Town has established rates for multi-family residential uses.
Pursuant to Resolution No. 13-1005, the Town Council set Country West’s Wastewater Base Charge at $400 per month. The Utilities department is currently charging Country West $341.89 per month and has been doing so for some time without explanation.
In order to change the Country West Mobile Home Park wastewater rate, the Town is required to meet the requirements of A.R.S. § 9-511.01 and issue this report.