Utilities Rate Advisory Commission Meeting - January 27, 2016: Public Hearing on Proposed Four-Year Water and Wastewater Rate Increases
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Utilities Rate Advisory Commission Meeting - January 27, 2016
The Utilities Rate Advisory Commission (URAC) held a public hearing on January 27, 2016, to consider the Department of Utilities' proposed four-year water and wastewater utility service rate increases. The meeting began at 5:33 p.m. and included staff presentations, extensive public testimony, and commissioner discussion. The commission deferred a final decision by voting to continue the public hearing to February 10, 2016.
Consent Calendar
- Approval of Minutes for December 9, 2015: Approved unanimously (6-0).
Public Comments & Testimony
- Opposition: Numerous residents and business owners spoke against the proposed rate increases, citing financial hardship, perceived mismanagement, lack of transparency, and the burden on low-income and fixed-income households. Specific concerns included the accelerated water meter program (from 2025 to 2020), inadequate outreach, past illegal transfers of utility funds, and high costs of contracts. Speakers urged the commission to reject or delay the rate hikes and to explore cost-saving efficiencies.
- Support: A few speakers supported the increases, emphasizing the need to invest in aging infrastructure, maintain reliable service, and avoid future crises. Supporters noted the city's good credit rating and the importance of funding capital improvements.
Discussion Items
- Staff Presentation: Bill Busath (Director of Utilities), Dan Sherry (Engineering Manager), Susan Goodison (Business Services Manager), and Lucy Crocker (Community Engagement) presented the four-year rate proposal. Key points: the water system requires $265.5 million in capital improvements (including $230 million for accelerated meter installation), and the wastewater system needs $53.5 million. Proposed annual increases: water 10% (raising average monthly bill from $45.73 to $66.95 by 2019), wastewater 9% (from $22.42 to $31.65). The storm drainage rate adjustment was withdrawn. Staff noted 381 written protests received as of the meeting. The utility rate assistance program (currently serving 1,600 customers) would be continued with general fund support.
- Commissioner Questions: Commissioners asked about the 100-year replacement cycle, debt financing, the impact of the meter acceleration program, the utility rate assistance program, comparisons with other cities, and the potential for consolidating wastewater services with the county. Staff acknowledged that the proposed rate increases would not achieve the 100-year replacement cycle within four years (water: ~200-230 years; wastewater: ~300-350 years) but would move toward that goal.
- Public Hearing: Commissioners heard over 30 public speakers, the majority opposing the rate increases. Concerns included the steep 40% cumulative increase, lack of economic impact analysis, and the timing of the meter acceleration.
Key Outcomes
- Substitute Motion: Commissioner Brian Biering moved to adjourn the public hearing and continue it to February 10, 2016. The motion was seconded by Ryan McManus and passed 5-1 (April Butcher opposed). This action deferred a decision on the rate proposal.
- Next Steps: The commission will reconvene on February 10, 2016, to continue the public hearing and potentially vote on a recommendation to the City Council. Staff was asked to provide additional analysis, including the impact of extending the meter installation timeline to 2025.
Meeting Transcript
Brian Biering. Here. Brian McCannis. Timothy Horner. Here. April Butcher? Here. Andrew Day? Here. Carolynville Hunter. Here. You have a quorum. And if my, if I may please read a quick meeting announcement. This meeting is being video streamed and can be viewed on the city's website, or it can be viewed at a later date from the archive files. Please silence all cell phones and mobile devices. If you wish to speak tonight, please compete, complete a speaker slip located at the back of the room, and you can return it to me at any time. And should you need assisted listening devices, they are available upon me from me upon request. Thank you. The first order of business. First, I would just like to just reiterate since we have some folks, people in the audience today. Um, thus the the purpose of the utility rate advisory commission. And our purpose is to review and comment on proposals made by the department for changes to utility service rates. It says it's all. Is that better? Okay. Okay, again. If I I'm gonna continue it and we'll move on to the meeting, and appropriate documents will be handed out as needed. The utilities rate advisory commission. Our purpose is to review and comment on proposals made by the department for changes to utility service rates, develop and provide recommendations to the city council on issues relevant to the setting of rates, not including the level of service. We hold rate hearings on proposals to increase utility service rates or establish new rates. And the conclusion of the hearing, provide recommendations to the city council and act as a liaison to encourage community understanding of and participation in the utility service rate setting process. So I'd like to thank each of you all who've taken the time to be here this evening. And the first order of business that we're going to do is to review the minutes of the December 9, 2015 meeting. I move approval of the minutes. Second. That's been moved by Commissioner Horner and second seconded by Commissioner Baring. All those in favor. I'm sorry. Uh Brian B. Ering. Aye. Brian McCannis. Yes. Timothy Horner. Aye. April Butcher. Yes. Andrew Day. Yes. Carolyn Bill Hunter.
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