Utility Committee Agenda and Packet 2021 05 11

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VI. Dashboards Councilmember Lipton called on Mr. Kowar and Mr. Peterson to provide a tour of the Dashboards. Mr. Kowar stated the submitted dashboards are an example of the challenges we faced and due to technical issues the dashboards did not update accordingly. As a verbal update, expenses were down slightly for 2021 and up about $1.2M on the revenue side over targets, due to the dry weather. The first quarter of this year is typical for the winter and is basically the same every year without much variation. Councilmember Lipton asked if we had another month to generate accurate information can we do that. Mr. Kowar said yes. Councilmember Lipton stated he wanted to delay the discussion given the technical problem. Mayor Pro Tern Maloney and Councilmember Fahey both concurred to postpone. Mr. Kowar clarified that while the dashboards did not display correctly, the most updated information is included in the utility rate increase that scheduled for Council next Tuesday. The impacts that would have been shown in this dashboard have been included in the rates. Most notably, the increase in revenue did lessen the recommended increases for 2021. Councilmember Lipton clarified then the amount of money being carried forward will be correct for Council presentation but not reflected in this graph. Mr. Kowar said that is correct. VII. 2021 Utility Rates Mr. Kowar started by giving an overview with the two sources of income for the utility which is tap fees and monthly rates. The monthly rates are the focus of today's discussion. Mr. Kowar explained the current methodology utilizing AWWA Standard and how the City's Cost of Service is calculated. He then explained the rate design of using a block rate structure and a service charge or base fee. Mr. Kowar continued describing how this as evolved over the last 5 years. In 2013 a Rate Task Force was developed. In 2014 the rate study was completed, including a determination of Cost of Service for equitable rates to defined customers classes. The 2013 Rate Task Force had three key findings in making sure: tap fees pay for themselves, maintain Cost of Service equity and emphasizing water conservation. Mr. Kowar provided context for this background in producing a response to questions from Council in regards to how the City charges for utility rates and to recognize the new Committee members by giving them the knowledge for the future. Mayor Pro Tern Maloney recalled the Committee's agreeing to review these policies every 5 years and suggested that any policy issues be identified before getting to far into the analysis. Councilmember Lipton agreed. Councilmember Fahey asked for some additional background on the Cost of Service. M