Council approves water rate reduction

By Ralph Pokorny

Nevada Daily Mail

Nevada residents will be getting a long awaited present from the city of Nevada when they open their monthly water bills -- a rate reduction.

This reduction is the result of two ordinances the city council passed on first reading Tuesday night to set new water and sewer rates.

The reduction will not amount to a lot of money on a monthly basis; however, over the course of a year, the reduction will be roughly equivalent to one month's bill.

City Manager Craig Hubler told the city council during Tuesday nights meeting that this rate reduction is the first change in water rates since June 21, 1983.

"The change is essentially close to one month's service for free," he said.

This will lower the water rates to close to the amount the surrounding water districts charge, he said.

The cost for the first 1,000 gallons or less of water will remain unchanged at $10 while the rate for the next 49,000 gallons will drop from the current $6 to $5.65 per 1,000 gallons.

Hubler told the council that there are quite a few customers who use less than 1,000 gallons per month.

The rate for customers who use large quantities of water will keep their current rate of $3.50 per 1,000 gallons of water usage over 50,000.

"Large residential users use about 5,000 gallons per month," Hubler said.

At the same time the water goes downm the sewer rates for some customers will go up to cover part of the costs of sewer line construction.

Sewer rates will continue to be calculated from a customer's water usage during December, January and February to avoid charging for water that is not discharged into the sewers, such as water used on lawns.

For residential customers who pay the minimum combined water-sewer bill, the monthly bill will drop from the current $12.54 to $11.69 for an annual savings of $10.20.

A residential customer using 5,000 gallons of water monthly and paying a combined bill of $41.82 will see his monthly bill drop to $38.97 for an annual savings of $34.20.

"Our sewer rates remain one of the lowest in the state," Hubler told the council.

A petition audit released in February was critical of the city's water and sewer rate structure, asserting that the city's water and sewer rates had not been reviewed and this has allowed the city to collect money above the actual cost of operation.

Donna Christian of the State Auditor's Office said that the rates should be set to cover the cost operation as well as repairing and replacing infrastructure.

In a related move, the city council also passed on first reading a general ordinance amending Chapter 16 of the city code to add Division 3, Water and Sewer. This division details the payment in lieu of taxes that the city's water department has made to the city's general fund since the city acquired the water system. The payment of 6 percent of the gross receipts plus a monthly payment in lieu of property taxes is equivalent to the payment that Missouri Public Service made in annual franchise fees plus property taxes. This answers the long held belief by private utility companies that public utilities had an advantage because they were subsidized by taxes. The February audit report also alluded to these issues.

In other business, the council:

* Approved the appointment of Gary Ashby to a three-year term on the plumbing board to replace Brian Bell who resigned. Ashby's term will expire March 2008.

* Approved the appointment of John Flynn to a four-year term on the planning commission to replace Corey Johnson who resigned. Flynn's term will expire March 2009.

* Postponed consideration of Joe Willis for the planning commission at his request.

* Approved the appointment of Steve Gray to a four-year term on the planning commission replacing Van Celaya whose term has expired. Gray's term will end March 2009.

* Approved the appointment of Dean Stutesman to a four-year term on the plumbing board replacing Gary Ashby, who resigned. Stutesman's term will end March 2009.

* Accepted the low bid of $13,923 from Scurlock Industries, Springfield, for 21, 4-foot diameter manholes for the construction of a new sewer line for Bill Erwin's Addition, located south of the Nevada Country Club on Spring Street.

* Accepted the low bid of $17,161 from Heartland Waterworks, Grandview, for pipe for the construction of the sewer line for Bill Erwin's Addition. The purchase will include 4,600 feet of 8-inch SDR 35 and 1,960 feet of SDR 21 pipe.

* Accepted the low bid of $3,957.76 from Orr Safety Corporation for eight Scott C420 powered air purifier respirators for the Fire Department. These units are similar to respirators used by workers doing asbestos removal and will be used in situations involving hazardous materials. The eight units will be paid for with a Homeland Security Grant.

* Approved spending of a total of $21,641.11 for chemicals for the golf course.

* Approved the purchase of 27,000 pounds of Chemical EL 4010 from Missouri Valley Environmental for a cost of $24,732 annually.

* Passed on first reading a special ordinance to approve an agreement with the Nevada Housing Authority to provide additional police services at Nevada Housing Authority properties.

* Passed on first reading a special ordinance approving the purchase and installation of equipment from Commenco/CML, Kansas City, to upgrade the city's E-911 system. The initial cost of the upgrade will be $89,974.64. A Homeland Security Grant will cover $45,010 of the cost. The city will pay the remaining $44,487.64. The first year's installation and operating cost is estimated to be an additional $12,373.60. The total cost of phone service and equipment maintenance during years two through five will be: year 2, $22,259.72; year three, $22,552.60; year four, $22,857.20 and year five, $23,273.98.

* Passed on first reading a general ordinance prohibiting parking on the north side of Wight Street bordering the Methodist Church to alleviate the congestion when cars are parked on both sides of the street.

* Passed on first reading a special ordinance approving the lease-purchase of a 2004 Jeep Grand Cherokee from Nevada Auto Mall for $19,950 for the police department. The vehicle will be equipped and used to transport the Police Department's new canine. The Nevada Police Department has recently received a $10,000 grant from the Finis M. Moss Charitable Trust to cover the cost of the canine and the lodging for an eight-week training session.

* Passed on second reading a special ordinance to expand the number of members on City Airport Board from five to six with at least four members living in the city limits.

* Passed on second reading a special ordinance accepting the dedication of streets in Villa Nevada Trailer Park to the city of Nevada.

* Passed on second reading a special ordinance approving an electrical services contract with Cash's Quality Electric.

* Gave final approval to a special ordinance approving a sewer extension agreement with Dean Stutesman to extend the city sewer lines to Ashland Estates Plat No. 2. Under the terms of the agreement Stutesman will put the estimated $7,840 to extend a sewer line across Ashland Estates Plat No. 2 in an escrow account and the city will refund any money in excess of the actual cost of constructing the sewer line. If the cost of the projects exceeds $7,840, Stutesman will pay the city any additional costs.

* Adopted Resolution No. 1111 approving the placing of a stop sign on Commerce Drive at the intersection of Austin Boulevard. The new Social Security office is currently under construction at the location and officials say the stop sign is needed to control the construction as well as future traffic to this office.

* Adopted Resolution No. 1112 approving membership in the Southwest Missouri Major Case Squad Drug Task Force. This organization was formed about two months ago and encompasses Vernon, Barton, Cedar, St. Clair and Bates counties.

* Adopted Resolution No. 1113 approving $750 in travel expenses for Julie Stumpff, city clerk, to attend the annual Spring Institute, which will be held March 14-17 in Columbia, hosted by the Missouri City Clerks and Finance Officers Association.