Minutes

             
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:
  • Jack Rathjen
  • Ward Davis
  • Robert Vane
The following comments were received:
  • In the reclaimed water industry there needs to be a balance so there is a commodity that can be sold and used by the community.
  • Raising the rates does not benefit the community.
  • The community likes to have a municipal golf course and the Country Club does a good job at providing community activities.
  • The 35% appears arbitrary and it will not cover all the capital improvement projects.
  • Urge the Council to go with the 7.2% increase for everyone.
  • There has been no discussion on setting principles on reclaimed water.
  • The Council needs to define the long term policy for setting reclaimed water rates.
  • If the off-peak class is retained, there is an obligation to the public to explain the rationale.
  • Establish the principles and design the rate study after the principles.
  • The worth of reclaimed water needs to be determined.
Councilmember Putzova stated that she is comfortable with phasing out Tier 2. The policy behind the off-peak rates is flawed and it sends the message that reclaimed water is not a resource to conserve. The capital projects should be expanded so there is more access to reclaimed water. She also believes that there should not be any new development that comes in that does not have access to reclaimed water.
 
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.
 
  Moved by Vice Mayor Jamie Whelan, seconded by Councilmember Charlie Odegaard to continue the agenda.
  Vote: 6 - 1
 
NAY: Councilmember Celia Barotz


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getMinutes (Datasource=frsRO, Time=0ms, Records=1) in D:\inetpub\PublicPages\public\publish\print_minutes_popup.cfm @ 10:00:07.007
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