1 | Reclaimed Water Rate Options for Consideration. (MOVED FROM ITEM 10) | ||||||||
Utilities Director Brad Hill provided a PowerPoint presentation that covered the following: RECLAIMED WATER RATE DISCUSSION GOAL POLICY GUIDANCE – ALTERNATIVE BROUGHT FORWARD TO THE WATER COMMISSION OFF PEAK RECLAIMED RATES ALTERNATIVES SUMMARIZED FOR CITY COUNCIL Utilities Engineering Manager Ryan Roberts continued the presentation. WHY CONSIDER RAISING RATES? EXISTING CAPITAL IMPROVEMENTS – 10 YEAR UNFUNDED CAPITAL IMPROVEMENTS RECENT EVENTS IMPACTING REVENUES PRIOR COUNCIL DIRECTION Revenue Director Sandy Corder continued the presentation. ALTERNATIVES SUMMARIZED FOR CITY COUNCIL RECLAIMED WATER REVENUE & EXPENDITURE PROJECTIONS EXISTING RATES-REVENUE RECLAIMED WATER REVENUE PROJECTIONS ALL RECLAIMED CUSTOMER CLASS (EXCEPT OFF PEAK) OFF PEAK RECLAIMED WATER REVENUE PROJECTIONS PHASE OUT TIER 2 THROUGH JANUARY 2020 AND INCREASE RATE TIER 1 BY 6.2% ALTERNATIVE STAFF RECOMMENDATION RECLAIMED WATER REVENUE PROJECTIONS SUMMARY OF WATER COMMISSION RECOMMENDATION DEBT OPTION – BONDING FOR PROJECTS PROPOSED NEXT STEPS Councilmember Putzova asked the reasoning behind extending to 2020. Mr. Hill explained that 2020 was chosen to align with the action already in place for water, wastewater and stormwater. Staff felt it was appropriate that all the funds have reviews and adjustments at the same time. The following individuals addressed Council regarding reclaimed water rates:
Councilmember McCarthy offered that he is in support of phasing out Tier 2. Capital improvements are needed and he is supportive of adding debt service if it is for something to keep the system working. Vice Mayor Whelan stated that customers are taking action not to waste reclaimed water and she would like to incentivize that behavior. There needs to be discussion about the long term policy for reclaimed water. A majority of Council was in favor of the staff recommendation to adjust the rates and phase out Tier 2. Additionally a majority of Council was in favor of pursuing the debt option for capital improvements. Councilmember Barotz stated that she did not support anything because she is not comfortable with the approach. She is concerned with the lack of clarity and does not understand the philosophy of the reclaimed system and what it is trying to accomplish. She would prefer to step back and review the bigger questions and then talk about what the system should look like. Mayor Evans agreed stating that the long term policy for setting the rates needs to be determined. The City has changed and the understanding of reclaimed water has changed; it is time for Council to define the policy and how they want to move forward in the future. Councilmember Putzova requested a discussion item before the setting of rates for the reclaimed water policy. Council can define what they want the system to achieve and then staff and the consultants can translate it to technical material. |
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Moved by Vice Mayor Jamie Whelan, seconded by Councilmember Charlie Odegaard to continue the agenda. | |||||||||
Vote: 6 - 1 | |||||||||
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