Utility Rate Study
In March the City Council authorized Bowen, Collins & Associates to perform a utility rate analysis study to determine if we needed to change rates to handle changes in demand patterns and cover future maintenance costs. The analysis reviewed culinary water, pressurized irrigation, sewer, and storm drain rates. BCA determined that the estimated replacement value of the water system is $34.5 million, $21 million for the PI system, $49 million for the sewer system, and $15 million for the storm drain system.
BCA looked at the current revenue received on each utility, determined what that would amount to over the next 10 years, and also proposed a rate structure based upon the needs of the system to accommodate for growth and maintenance and/or replacement.
BCA suggests a rate increase each year for the next 10 years for culinary water, sewer, and storm drain. They do not recommend a rate increase for PI. The overall utility increase ranges from 3.7% to 4.3%.
These rate increases would cover almost the entire costs that are assumed will be needed for these utilities. BCA mentioned that the increases assume 3% rate of inflation and the overall increase suggestions are not much higher than that, which shows the City has planned well for future needs and will not need to implement a large rate increase all at once like many other cities have done.
Cedar Hills currently uses a block method to determine utility rates and BCA recommends we stay with this structure but change the first tier for water to a high of 8,000 gallons instead of the current 10,000 gallons to come closer to the average residential use of 6,000 per month. BCA also recommended that block rates for water be determined by meter size as larger meters have a higher cost of service. Implementing this will not affect most residents as most are on the smaller meters. The same applies to other utilities where the block rate for PI would be based on connection size, meter size for sewer, and lot size for storm drain.
The entire analysis can be viewed online at http://www.cedarhills.org/sites/default/files/agendas/city-council-ws-agenda-2012-05-01.pdf.
Pleasant Grove Sewer Proposal
This item will be moved to another meeting as there was not enough time to discuss.
Council Meeting
Public Comment
Virginia Rosenthal - Ms. Rosenthal lives right next to Mesquite park and is concerned about placement of future bathrooms. She has had problems with the portable units including trash, smell, people throwing rocks in her yard, loud conversations late at night, etc. She would like the Council to identify other areas for restrooms. Council member Martinez will work on this with her.
Marisa Wright - Mrs. Wright wants to thank the Council for making hard decisions and working hard. She knows it is a stressful job and appreciates the service of each council member.
Paul Sorensen - Mr. Sorensen provided the Council with a financial summary he has completed on golf course financials. He brought up his frustration with the September 2011 newsletter entry on the golf course and wants a correction in a future newsletter. He feels residents need to know about the golf course financials and that additional expenses should be included, such as water usage and rent for the clubhouse. He feels revenue and expenses for the golf course need to be separate from the CoRec. Council member Gygi will provide Mr. Sorensen's analysis to the Golf Course Finance Advisory Committee.
**On a side note, additional expenses for water and rent aren't associated to parks or other city facilities so the golf course (which is city-owned) hasn't been treated any differently.
Consent Agenda
The minutes from the April 3, 2012 City Council meeting and ordinance changing the location of Council meetings to the CoRec were both approved.
City Reports
Council member Augustus - Planning Commission has worked through Harts approval.
Council member Martinez - Grand opening for the CoRec is on May 5th 10am-2pm. Recreation classes start on May 15th.
Council member Jackman - LPPSD met on the budget process. Chief Freeman discussed ways to cut costs with better ways of using equipment. The Finance Committee discussed the study on utility rates.
Council member Gygi - The Finance Committee also discussed a possible refinance of city bonds and is still researching options.
Review/Action on City Manager Performance and Contract
This item was tabled as the City Manager resigned earlier in the day.
Review/Action on Preliminary Plan for Bridgestone Development
Perry Homes submitted a preliminary plan for their 8-plex units. There are two units with homes being either 1400 sq ft or 1584 sq ft. One resident asked about the apple trees currently in that area and Perry is willing to remove the apple trees if the community wants this done. The preliminary approval was granted with the following requirements:
- A final plat shall be prepared and submitted for approval
- Proposed sidewalk on 4500 West shall be a minimum of 6-feet wide
- Proposed parking stalls along 4500 West shall be a minimum of 20-feet in dept so as not to impede with walk
- Material types and landscaping shall be reviewed and approved by the City Council
- Drainage calculations, street design, and utility design shall meet City standards and shall be approved by the City Engineer
Harts provided examples of signage that will be on the building and the canopy as well as outside placement of ice freezers and propane tanks. Harts will be having a ground breaking ceremony as soon as permits are approved. The final plans were approved with the following requirements:
- Final plat shall be prepared with right of way dedication identified
- An executed development agreement with water rights required and right of way maintenance
- Final signage plan to be submitted
Rebecca Tehero presented additional items suggested for the 2013 budget, which includes money for communications, utility revenue based on suggested rates from the utility rate analysis, and to lease instead of purchasing new golf carts. The Council has requested that the revenue projections for the golf course be recalculated to be more realistic as the current numbers are lofty and we will not meet our projections for 2012. The tentative budget was approved; however, this is not the final budget. The State requires each city to approve a preliminary budget by May 1st of every year but a final budget is still forthcoming.
Discussion of Future Civic Center
This item was postponed for a future meeting.
Review/Action on Completion of CoRec Basement
The Council has determined that the basement of the CoRec should be completed, but there was some discussion on where the money will come from. In our original talks the assumption was that the $350,000 set aside for a splash pad would be used for this; however, the CoRec went over budget so the remaining balance of the recreation impact fees is approximately $150,000. There are some other areas where we can pull this money from, including CARE tax and the unrestricted funds set aside for a possible Civic Center. The Council requested that staff move forward with obtaining bids on completion of the basement and the Finance Committee will make suggestions as to where the money should come from.
Review/Action of Assignments
The Council accepted the resignations of Brad Kearl, Kim Holindrake, and Konrad Hildebrandt. More information can be found in the press releases on our website and on this blog.
The Council did go into Exective Session.
