Utility Committee Agenda and Packet 2019 10 30

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City Council Utility Committee Meeting Minutes Friday, September 13, 2019 Page 5 of 6 Councilmember Stolzmann moved to the 2020 Rate Comparison Table. Mr. Peterson said the rates associated with Option B are essentially the same as Option A. Current rate projections for Option B is a .3% increase for water in 2020 where the 2019 Rates suggested an increase of 1.2%. Wastewater rates had a similar trend with 2019 rates calling for a 4% increase and Option B suggest a 3%. Storm didn't change as there are no projects so that drops out as we go through. Councilmember Stolzmann asked how changing the reserve policy could impact 2020 rates. Mr. Peterson stated that the 2020 rates are not dependent on the reserve policy are being driven by the rate minimum policy that require rate adjustments to recover the annual cost difference in O&M expenses. Councilmember Stolzmann asked if the rates will be reviewed prior to the typical May Council approval. Mr. Kowar said we are going to go into more detail if you're comfortable with that. Then Mr. Peterson said he'd like to start preparing our typical presentation packet around Option B. Mrs. Balser asked is should be added to the November meeting. The Committee decided that this should be added in 2020 and include the Financial Policy so we have as a reference. Committee proceeded to the 2020 Tap Fees. Mr. Peterson explained this is a result of a recent shock in CBT prices and stated our tap fees are made up of two components; Plant Investment/Infrastructure Fee and Water Resource Fee that was set in 2016 off a value of $24,000. As of 3 weeks ago there was a recent sale of CBT of $60,000. So if we matched our CBT value off of that our tap rate for a 3/4" would be $56,400 and this listed on the right side of the table. So what we did was back off of that and did a proposed $50,000 and $40,000 cost for CBT and you can see the incremental changes of the different tap fees. Mr. Peterson went on to say we aren't aggressively pursuing CBT water so acquisitions that this price point may or may not be conducted. Committee discussed options. Councilmember Stolzmann stated all these options look like there would be a fee change. Mr. Peterson said the big component is because the CBT value has changed so drastically in a short time. One of the options that some of our surrounding communities offer is to bring your own water. We currently don't do that so if we want to start doing that then it will require some changes. Committee briefly talked about pursuing how we can let people bring their own water or not. X. Solid Waste General Update — Mr. Kowar summarized with saying we hit 5,300 accounts with 3 bins and out of that 15,900 opportunities to do well or mess up. Outreach went well and most people thought it was organized and liked what they got. Cart distribution went well. They had some issues with the GPS. Republic was able to get carts changed/exchanged within the first week. There were some things they had to work out. Drivers are getting familiar with routes and if any are missed they are going back. This has gone well as Republic has a Rep taking the calls and responding as needed. He then asked Councilmembers what kind of response they are getting and/or hearing from citizens. Mayor Muckle said he hasn't received any complaints from his neighbors. Councilmember Stolzmann