City Council Minutes 2014 03 18 - Laserfiche WebLink

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City Council Meeting Minutes March 18, 2014 Page 11 of 20 and stormwater utility bill will increase from $31.62 per month to $37.24 per month. Under the five-year plan the monthly rate would increase to $55.15 in 2018. The proposed rate increases reflect the capital improvements listed in the 10-year Capital Improvements Program for projects, which include a new Wastewater Facility, upgraded Water infrastructure, and an upgraded or new Stormwater drainage system. The CIP Budget looks at infrastructure and determines whether it represents the quality and the level of service; whether it has it reached the end of its lifespan and needs to be upgraded or replaced. It also looks at equipment to ensure it is within the regulatory requirements. Some of the projects include the Wastewater Facility and the City Services Facility. The City Services Facility (CSF) allocates costs for the facility equally between the Water, Wastewater, Capital Projects, and Open Space and Parks Funds (25% to each fund). Another goal of the study was to propose an active rate increase for a first step in a five- year plan, which will ultimately become a five to ten year plan. The CIP projects list will be refined or reallocated. Staff recommended approving Resolution No. 18, Series 2013 and associated rate tables to increase utility rates for the 2014 calendar year in the amount of 2% for water, 27.0% for wastewater, and 30.0% for stormwater. COUNCIL COMMENTS Council member Loo requested the PowerPoint slides be made part of the public records and accessible by the Council and the public. Council member Stolzmann stated her understanding the rate increase is being requested to cover the City's cost for this year. The Council will look at capital projects and cost allocations in the upcoming months. Public Works Director Kowar confirmed this is the annual rate increase and there are not any new rate structures or reallocations of equity and no changes to the current CIP Budget. Council member Stolzmann inquired about the charge for the first gallon of water. Public Works Director Kowar explained the charge for the first gallon of water is for construction water meters. Finance Director Watson explained the charge for the first gallon is the bulk water rate. This is a correction as previously there was a higher fee, but it was charged after the first 10,000 gallons. This charge is for construction sites only. The increases proposed for residential user rates are 2% for water, 27.0% for wastewater, and 30.0% for stormwater. Council member Stolzmann asked if the rate increase is needed if the classes are not reallocated. Public Work Director Kowar stated the rate increase is needed to equal the financial plan. City Manager Fleming explained the rate increase will generate enough 36