HomeMy WebLinkAbout11-04-13 UtilitiesUTILITIES NOVEMBER 4, 2013 5:00 P.M.
Committee Members Present: Valerie Schey, Oliver Davis, Henry Davis, Karen White
Other Council Present: Tim Scott, Dr. Fred Ferlic (AB), Dr. David Varner, Gavin Ferlic,
Derek Dieter
Citizen Members Present: Carol Davis
Others Present: John Stomp, Kathy Ciesanski - Farrand, John Murphy, Jack Dillon,
Mark Neal, Cecil Eastman, Eric Horvath, Becky Schafer, Erin
Blasko
Agenda: Discussion of Proposed Utility Rates
This meeting of the Utilities Committee chaired by Valerie Schey was called to give the City
Administration an opportunity to discuss proposed sewer rate increases. It will undoubtedly be only the
first of a series of discussions regarding the most appropriate way to fund the EPA /IDEM mandated
storm /sanitary sewer separation project.
Valerie distributed several handouts (attached) prior to the presentation which was made by Eric
Horvath, Director of Public Works. Referring to the handouts and aided by a slide presentation (to be
provided in paper form at a later date) Eric recounted the EPA mandate, the work done by the City so far
to meet the requirements and the work yet to be done. He covered overall project costs detailing costs
for specific benchmarks in phase I and phase II. The how best to pay for the project was covered in yet
another handout (attached) prepared by Crowe Horwath an accounting consultant represented at this
meeting by John Stomp. Also present was Becky Schafer representing the engineering consulting firm of
Greeley Hansen. In short, the construction would be funded by a balance of cash and bond financing
made possible by suggested sewer rate increase of 9% each year for the next three (3) years.
Most of the following discussion by Councilmembers present revolved around the City's pace in trying to
achieve EPA compliance. Forestalling compliance efforts to meet minimum standards was urged, not to
take issue with the mandate itself; but to lessen increases in rates in the near term.
The counter argument to the approach was basically the "pay me now or pay me more later" rationale.
Greeley and Hansen's long term control plan has a price estimated to be over $600 million. Crowe's
analysis and funding plan based upon this plan is the one now being proposed by the Administration for
Council consideration.
Councilmembers feel alternative funding proposals should be developed and more discussion be
necessary before rate increase approvals.
R spec ully Submitted,
alerie Schey, Chairperson
Utilities
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* *An AV recording of this meeting is available upon request.