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HomeMy WebLinkAbout02/04/1997 Adjourned Meeting / Study Session R 285. CITY OF., YAKIMA, WASHINGTON FEBRUARY 4, 1997 ADJOURNED MEETING /STUDY SESSION The City Council met in session on this date at 8:00 a.m., in the First Floor Training Room at the Police Station /Legal Center, 200 South Third Street, Yakima, Washington. Mayor Lynn Buchanan, presiding. Council Members Clarence Barnett, Ernie Berger, John Klingele, John Puccinelli, and Bernard Sims present. Council Member Henry Beauchamp absent and excused. Assistant City Manager Rice, Director of Finance and Budget Hanson, Chris Waarvick, Wastewater Superintendent, . Doug Mayo, Project Engineer, Bruce Bates, Assistant Wastewater Superintendent, Pete Hobbs, Environmental Analyst, and Deputy City Clerk Skovald also present. Wastewater Cost Of Service Study Mayor Buchanan welcomed the group and called the meeting to order. Glenn Rice directed attention to the 1996 Wastewater. Cost of Service Study and noted this study session was scheduled after Council deferred action at the Budget Wrap -Up discussions last December. He then introduced Wastewater staff members and invited questions from the Council. Council Member Barnett questioned the accuracy of the preliminary results of wastewater strength samples taken from residential areas that are not known to contain commercial strong waste sources. He feels the samples are inadequate to consider increasing the strong waste rates for residential users. Chris Waarvick described the limited series of tests taken for Biochemical .Oxygen Demand (BOD) and Total.. Suspended Solids (TSS), also known as Suspended Solids or (SS). He further explained domestic strong waste sampling will continue and additional data will be forthcoming since the test results may be highly variable from area to area and may be seasonal. Mr. Waarvick didn't feel the sample is really valid enough to consider making changes in the residential rates and pointed out that the limited amount of information prevents a definitive answer to the domestic strength of wastewater in Yakima. There was a considerable amount of discussion among the Council members concerning whether or not the restaurant industry was carrying the entire burden of charges for BOD and Suspended Solids. A suggestion was made to educate the public to not pour grease or other inappropriate wastes down the drain. There was also discussion about the method of sampling, when the samples were taken, and how strong waste is determined. I/ Council Member Puccinelli adamantly expressed concern and reiterated that concern several times during the meeting about raising the surcharge for only one industry for wastewater strong waste discharge. The Council also briefly talked about water saving devices. r Council Member Barnett directed attention to another area of the 1996 Cost of Service Study where emphasis is placed on charges to City retail customers with a 3/4 pipe water meter size. He pointed out that there is a different ready -to -serve charge for 286. ADJOURNED MEETING -- FEBRUARY 4, 1997 the various sized pipes and a different formula for multi -unit residential charges. Furthermore,. the 1996 Cost of Service Study is silent on this issue, and he questioned whether those rates will increase. Council Member Barnett assumed that the rates would not be increased for the other water meter sizes or the multi -unit residential customers. This information is needed to compare rates. Doug Mayo explained the rates will be included in the proposed ordinance with all factors multiplied out. He directed Council's attention to Page 5 of Section 5 of the 1996 Cost of Service Study, specifically to Table 5 -9 which indicates the Number of Meter Equivalents and provided a detailed explanation of how rates vary among the meter sizes. He also indicated both figures and ratios are the same as the last draft of the report. After Doug Mayo explained how the overall percentage of increase was figured, the Council discussed the ready -to -serve charges, unit of consumption, how the rates are computed, as well as the proposed three percent increase in the ready -to -serve charge. There was also °ari extensive discussion about the accelerating costs and inflationary increases in all rates for utilities, not just sewer bills, as well as higher costs for property taxes and other living expenses. The Council also elaborated on the substantial increase and shift in population within Yakima and the increased wastewater costs that come with that increased density, particularly more people in households. Also affecting sewer rates are compliance with environmental safety mandates as well as higher costs associated with maintenance and operation of the Wastewater Treatment Facility. Major factors identified during the discussion include major price increases for commercial supplies and commodities along with other necessary expenses to treat wastewater, of which only a small part consists of increased labor costs for the overall operation of the Wastewater Division. Chris Waarvick asked for Council direction on the policy issues deferred last December, along with the rate increases requested in the 1996 Cost of Service Study. Those include the East Mead Sewer Planning Study and initiating a low -level construction rehabilitation on storm drain systems. Glenn Rice commended the Wastewater Division for their overall good job in keeping up with these costs and keeping in mind the concerns expressed by the Council and appreciating the support expressed by the }Council. It is critical in any community to keep in mind the costs associated with a rising population as it relates to wastewater treatment. Council Member Klingele directed attention to the Alternative Disinfection (UV light) capital cost expected in 2006 which will be replacing the current chlorination and dechlorination equipment. Council Member Puccinelli feels Wastewater Treatment Plant maintenance should not be allowed to fall behind and rate increases need to be implemented instead of issuing bonds to catch up later because that would hurt the rate payer down the road. John Hanson explained that when bonds are issued interest and debt service have to be paid, and it would be cost effective to implement a rate increase now. 2 287 ADJOURNED MEETING -- FEBRUARY 4, 1997 f End: Council Member Klingele also brought up the clean air mandate and asked what is anticipated Cliris Waarvick spoke about the volatile organic compounds threshold which the City must register with the Clean Air Authority. Because of the nature of the pre- treatment program and the nature of the industry in the area, and the City's continuing education efforts, he doesn't foresee the type of compounds which would exceed the threshold with the Clean Air Authority in the near future. In response to a question from Council Member Puccinelli, Mr. Waarvick also pointed out that industries in the area are paying less subsidies in the user classes by the City Retail Ratepayer paying more with less subsidies for industries than before. Doug Mayo explained the necessity of planning for future services, which is triggered by reaching 85% of treatment facility capacity for three months. That process is in progress. Chris Waarvick reminded the Council that the City is working under an extended Wastewater Discharge Permit and there are some areas concerning" nutrient control, ammonia, phosphorous, and other things that are uncertain. Water quality and allocation are also factors when determining discharging into the river. There was discussion about regulatory orders, water quality and controls, and outflow purity comparisons. There was a suggestion to perhaps schedule individual Council member tours of the Wastewater Treatment Facility. There was a brief discussion about the costs for piping outside the city limits as well as depreciation costs for the projects. There was discussion of pretreatment program costs as it relates to the billing disagreement with City of Union Gap and the Terrace Heights Sewer District as far as their ' unfulfilled Pretreatment Program obligations. It appeared to be the general consensus of the Council that staff bring back the recommended alternatives in the Cost of Service Study, the East Mead Sewer Study, and the Stormwater minor repair issue as well as the appropriate legislation and policy issue for formal action request at the next regular business meeting. Glenn Rice explained increased rates are needed to provide adequate funding to do the work so bonds won't have to be issued to raise the money. It was MOVED BY SIMS, SECONDED BY BERGER, TO ADJOURN THE MEETING AT 9:00 A.M. READ AND CERTIFIED ACCURATE BY: , '_. 7 ,,,r CIL MEMBER D'. TE 1*(Af "AritO COUNCIL :ER DATE ATTEST: CITY CLERK ' BUC `4 AN, MAYOR � Minutes prepared by Deputy City Clerk Skovald. An audio tape of this meeting is available in the City Clerk's Office 3