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HomeMy WebLinkAboutWater and Wastewater Rate Advisory Committee Minutes - August 22 2017 City of Colleyville Page 1 Water and Wastewater Rate Advisory Committee MINUTES City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com August 22, 2017 6:00 p.m. Executive Conference Room Third Floor – City Hall Chair Susan Mathisen called the Water and Wastewater Rate Advisory Committee meeting to order on August 22, 2017, at 6:00 p.m. ROLL CALL: Chair Susan Mathisen, Vice Chair Gerald Gibson, and Committee members Raymond Allee, Thomas Bauch, Claudia Bevill, James Dove, Jeff Gilstrap, Anthony Seris, Tim Raine, and Samuel van Bever were present. City Manager Jerry Ducay, Strategic Services Manager Adrienne Lothery, Public Works Director Jeremy Hutt, and Chief Financial Officer Shereen Gendy were also present, as were Mayor Pro Tem Bobby Lindamood and Councilmember George Dodson. 2. REGULAR AGENDA ITEMS 2a Introductions, overview of Committee charge, and discussion of water and wastewater rates Chair Mathisen welcomed the Committee and all Committee members, staff, and Councilmembers present were introduced. Manager Lothery presented the presentation included with the agenda packet reviewing Committee accomplishments to-date and providing an overview of the Committee’s new charge. The Fiscal Year (FY) 2018 Utility Fund budget and associated water and wastewater base rates were also presented, as well as the anticipated volumetric charges based on preliminary information from the Trinity River Authority (TRA). The FY 2018-2022 Capital Improvement Plan utility projects were also presented. As a part of this presentation, Manager Lothery explained that based on the FY 2018 proposed Utility Fund expenditures, water and wastewater base rates could be lowered in FY 2018. Staff’s recommendation is to take the incremental difference from lowering the base rate and use it to establish a capital projects base rate, which would maintain the current base rate in total. Establishing a capital projects base rate would provide the ability to begin saving cash for future utility capital projects, once current available cash is spent, ultimately avoiding or limiting the future need for debt. Chair Mathisen explained that the main priority to accomplish at this Committee meeting was to determine whether the Committee supports this recommendation, Water and Wastewater Rate Advisory Committee Minutes August 22, 2017 City of Colleyville Page 2 in order to advise the City Council as they consider FY 2018 base rates at the September 5 and 19, 2017 City Council meetings. The Committee discussed the recommendation and asked several questions. Director Hutt provided a recap of the 2014 Water and Wastewater Master Plan and time horizon of projects identified in that plan. Manager Lothery explained that the typical annual operating surplus in the Utility Fund of about $700,000- $800,000 is largely due to the way TRA invoices the City for volumetric charges, invoicing 1.2 times the actual published volumetric rate in order to provide for TRA’s cash flow needs. At the end of the year, TRA does a “true up” and either sends a refund or an invoice for additional costs, based on Colleyville’s contractual obligations for the City’s fair share of TRA’s costs. Manager Lothery explained that if a capital projects base rate were established using the incremental difference from lowering the water and wastewater base rates, it would generate an estimated $170,000 annually for future utility capital projects. The Committee discussed the reasons why building up this funding now would be a good idea, as well as why not. City Manager Ducay explained that building up cash now avoids or limits the amount of debt needed for utility capital projects beyond the current 5-Year Capital Improvement Plan, which is fully funded. The Committee agreed that lowering the water and wastewater base rates for FY 2018, to only collect the revenue needed for operations, was preferred. There was also consensus on using the incremental reduction amount ($1.57 for the typical residential customer) to create an initial capital projects base rate, which will maintain current base rates (2017) in total. Further, the Committee supported proposed changes to the utility bill format that clarify what each individual charge is for, and listing the capital projects base rate as a new separate charge. Chair Mathisen commented that reflecting the users’ share of utility operating costs in the base rate and distinguishing that from those of utility capital improvements is consistent with committee’s desire to maintain equity and transparency in Colleyville’s Utility Billing practices. Vice Chair Gibson made a motion to recommend that the City Council lower the water and wastewater base rates for FY 2018 and add a capital projects base rate in the amount of the reduction. Tom Bauch seconded the motion. The motion carried by the following vote: Aye: 10 – Chair Susan Mathisen, Vice Chair Gerald Gibson, and Committee members Raymond Allee, Thomas Bauch, Claudia Bevill, James Dove, Jeff Gilstrap, Anthony Seris, Tim Raine, and Samuel van Bever Water and Wastewater Rate Advisory Committee Minutes August 22, 2017 City of Colleyville Page 3 2b Discussion of future Committee meeting dates Chair Mathisen provided information on planned dates for future Committee meetings- October 2, 2017, October 16, 2017, and potentially October 30, 2017. The meetings are planned for 6:00 p.m. in the Executive Conference Room at City Hall. 3. ADJOURNMENT There being no further business before the Committee, Chair Mathisen adjourned the meeting at 7:26 p.m. Minutes taken and prepared by: Adrienne Lothery Strategic Services Manager