Utility Committee Agenda and Packet 2019 01 18

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City Council Utility Committee Meeting Minutes Friday, September 28, 2018 Page 2 of 3 Discussion of items not on agenda. Mayor Muckle asked about the possible ordinance changes related solid waste handling. Mr. Kowar stated that the City is modeling language similar to how Boulder County governs waste. The current plan is to advertise the contract hauling services RFP in November with a presentation to City Council around April 2019. Councilmember Stolzmann suggested a Utility Committee member should serve on the RFP selection committee. This opportunity will be provided to Councilmember Keany, with Mayor Muckle volunteering if Councilmember Keany was not available. VII. 2019 Utility Rate Workshop Mr. Kowar started the discussion by outlining the various rate projection iterations that have been completed and the desire to finalize this process in preparation for a recommendation. Councilmember Stolzmann asked for a walk through of the scenarios. Mr. Peterson explained the baseline is the rate model from last year that we used to adopt 2018 rates. Councilmember Stolzmann expressed a desire to have future baseline scenarios to represent the amended budget. Mr. Kowar commented that the scenarios are very dynamic and there is some difficultly in matching the other financial projections perfectly. Discussion continued about projections, percentages and expenditures. Mr. Kowar went on to say the rate model matches the CIP that have been previously reviewed by Council and represents the Operational Budget that Council is currently reviewing. The major difference between the financial projections and the rate model are tied to more up to date revenues and expenditures as well as the delay in tap fees. Councilmember Stolzmann sought clarification on why the budget plans for approximately 3-5% growth in operations increases and a rate increase is recommended at 0% for the water fund. This would indicate the reserve funds could be used for operations. Councilmember Stolzmann recommended that a rate minimum should be developed that would cover at least the increases in operational expenditures. Mayor Muckle was in favor of this recommendation. Mr. Peterson completed a quick calculation showing that the changes in operational costs in the water fund represent about at a 0.1 % change in the overall rate. Mr. Kowar stated that additional detail will be added to the rate model, showing the portions related to operational and capital expenses. The Committee agreed to this approach. Councilmember Stolzmann inquired to a large increase shown in the wastewater O&M budget for Wastewater Engineering. The total for this program is $71,000 in 2018 and $146,000 for 2019 and back to $71,000 in 2020. Mr. Kowar explained this increase is tied to $75,000 for additional sewer video inspection. The discussion moved on to stormwater, where Mr. Kowar provide a summary of the various stormwater CIPs. The first project discussed, was the BNSF underpass. Mr. Kowar highlighted the percentage spilt between the stormwater 4