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HomeMy WebLinkAbout09/07/2004 Adjourned Meeting 332. ADJOURNED MEETING SEPTEMBER 7, 2004 - 7:00 P.M. COUNCIL CHAMBERS - CITY HALL 1. Roll Call Present: Council: Mayor Paul George, presiding, Council Members Ron Bonlender, Dave Edler, Neil McClure, Mary Place, Bernard Sims, and Susan Whitman Staff: City Manager Zais, City Attorney Paolella and City Clerk Roberts 2. Public Hearing on Wastewater Facility Plan and Connection Charge City Manager Zais explained this hearing is to discuss: 1) Plans to update the facility plan, a requirement of multiple authorities. Black and Veatch was the consultant. The plan addresses future investments for decades to come, and is updated every five years. 2) Wastewater connection charges that exist for new customers. The costs are driven by capital improvements, renewal, and safety regulations to deal with growth. It has been the philosophy that growth pays for growth, a policy developed to lessen the burden on existing ratepayers. He emphasized that the subject is the connection charges, not the general utility rates paid every two months under existing utility bills. • Facility Plan Max Linden, Utility Engineer, gave a brief overview of the Facility Plan and pointed out that it will be included in the 2005 Comprehensive Plan amendment so there will be further review opportunities. He spoke about the increasing compliance requirements and how the plan looks forward twenty years giving direction for needed upgrades, what's necessary for regulation issues, for renewal and growth, and safety. Kenyon Hunt from Black and Veatch explained a graph showing the fundamental facility planning process using the past to predict the future and assess the current facility to see how it responds to current and coming conditions. He described their analysis methods noting that the growth shown on the graph is residential growth. Council Member Sims questioned the lack of industry growth. Mr. Hunt explained that the improvements are not liquid treatment capacity driven, but more by solids processing and creating redundancy within the plant to make sure the plant wouldn't go out of compliance with any equipment failure ADJOURNED MEETING — WASTEWATER 333 ''' SEPTEMBER 7, 2004 • Mr. Linden explained that upgrade priorities were in three groups: 1 -6 years, 7 -12 years, and 13 -20 years. The first six years are very ambitious with most projects falling into regulatory, renewal, and safety categories. Costs and funding were discussed. They will be using an existing revenue bond and will try to keep within the revenue stream. Also discussed were expiring bonds and the potential of rolling that revenue toward another loan. Another possibility is getting a Public Works Trust Fund or other loan source. In answer to a question about Moxee's request for sewer treatment, Mr. Linden . claimed there is flexibility on growth. They work on the basis of so much population; where that wastewater comes from doesn't matter. The spread of people has impacts on collections, but not on the treatment plant itself. , Ct The projected cost between collection and treatment plant upgrades over the next twenty years is $86 million. , D Mayor George opened the public hearing • Clarence Barnett, Central Washington Home Builders at 3301 West Nob Hill Boulevard, asked if the project for the ultraviolet disinfection was a mandatory or desirable requirement. Doug Mayo, Wastewater Treatment Manager, clarified that the termination of using chlorine for disinfection is not required at this time, however, under Homeland Security it is becoming more and more onerous to continue with that type of an operation. Due to public safety, the safety of the work staff, and the political climate, we think it is time for the change. • Connection Rates . Doug Mayo reiterated that it's been a long standing Council policy to attempt to get ' • growth to pay for growth so the existing rate base isn't burdened with paying for ,,) growth. He explained a change made in the report since the June 22 meeting - that had to do with LIDs. They proposed the rates be fixed for the people looking at the LIDs for a year from when legislation is enacted. He described the various zones: Zone 1 is within the city limits. As those limits change, the zone line will change Zone 2 is the area within the 1976 urban area boundary. This is the boundary , used in the grant applications in the late 70's and early 80's that received over $33 . million to help finance the treatment facility. The philosophy is that the people within that area should get the benefit of being a player in the grant (buys down their connection charges). Zone 3 is outside 1976 boundary but within the growth management area. Further discussion was held on balancing the costs over a period of time and over the new users versus existing users. Mr. Mayo said that during the first six years we may be front ending some project costs but, hopefully, in later years the revenue would come in and balance it out. They went on to discuss the , philosophy of growth paying for growth. 2 • 3.34' ADJOURNED MEETING — WASTEWATER • SEPTEMBER 7, 2004 John Hodkinson, Prudential Almon Commercial, spoke against the current method of establishing nconnection charges and recommended fees be set based on meter size. He spoke of the difficulties in competing with other states for commercial business. Members of Council commented on the need to review the growth pays for growth philosophy to determine if the method is still valid. Mr. Mayo explained that the treatment part of the rate is based on flow and strength of flow. Residential rates are figured on an average while industrial and commercial buildings look at how much water and the strength of the water being put back into the sewer rather than meter size. The intent is to make it equitable so the people using the treatment system pay for the treatment system. He said it is the trunkage part that Mr. Hodkinson was speaking of and right now the cost is based on the size of the lot that connects to the sewer. He understands the validity of the point about spreading the cost over the number of houses per acre. We could include both components and have the trunkage based part on land size and part on effluent, although this makes it more difficult to compute and administer. David Dunn of the Department of Ecology, said they have read the document and provided comments to the Wastewater staff. On the whole it seems to be a reasonable approach to addressing the wastewater situation. He commented that he had some questions on growth and thought some recommendations needed more support. ➢ Mayor George closed the public hearing City Manager Zais explained the need to move forward on the Facilities Plan. to position properly for federal and state funding. If necessary, it can be amended over the course of five years. PLACE MOVED AND McCLURE SECONDED TO BRING BACK LEGISLATION FOR THE FACILITIES PLAN AFTER REVIEWING COMMENTS FROM D.O.E. The motion carried by unanimous voice vote. I With regard to the connection charge analysis, it has been provided based on current Council policy developed in response to public outcry. Due to the discussion at this meeting, it was suggested that the Wastewater staff look into alternatives on the methodology for the calculation of the lot size for residential connection charge. There will be no change in the broader philosophy of growth pays for growth; that will still be the mission. 3. Adjournment McCLURE MOVED AND PLACE SECONDED TO ADJOURN TO SEPTEMBER 11, 2004 AT 8:30 A.M. AT THE HARMAN CENTER, THEN TO SEPTEMBER 14, 2004 AT 5:30 P.M. IN COUNCIL CHAMBERS FOR A STUDY SESSION ON DOMESTIC WATER RATE UTILITY. The motion carried by unanimous voice vote. The meeting adjourned at 8:47 p.m. 3