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HomeMy WebLinkAbout09-27-1999CiTY Of AUBURN PUBLIC WORKS COMMITTEE MINUTES SEPTEMBER 27, 1999 I, CALL TO ORDER The meeting was called to order at 4:30 p.m. Those in attendance were Mayor Booth, Committee Chairman Rich Wagner, Council/Committee member Gene Cerino, and Council/Committee member Fred Poe. Staff in attendance were Finance Director Diane Supler, Public Works Director Christine Engler, City Engineer Dennis Dowdy, Senior Engineer Dennis Selle, Traffic Engineer Steve Mullen, Transportation Planner Joe Welsh, Storm Drainage Engineer Tim Carlaw, Water Utility Engineer Lara McKinnon, Sewer Engineer Jeff Roscoe, Utilities Technician Darcie Hanson, and Engineering Aide Pam Miller. ' There were no guests in attendance. II. CONSENT NONE III. ISSUES A. RESOLUTION NO. 3118 AUTHORIZING THE MAYOR TO TERMINATE A STREET DELAY AGREEMENT Resolution No. 3118 authorizes the Mayor to terminate a Street Delay Agreement between the City and R.C. and Janet L. Miller. Street improvements as required per the street delay agreement have been completed. There were no questions. It was moved by Poe, seconded by Cerino, that the Committee recommend Council adopt Resolution No. 3118. Motion carded. IV. INFORMATION O1~ DISCUSSION A. SEWER COST OF SERVICE STUDY For the purpose of these minutes, this item was discussed after Information/Discussion Item B. Sewer Utility Engineer Jeff Roscoe reported that Cathy Carr, the consultant hired to perform the utility cost of service studies, had not had sufficient time to produce the full Cost of Service Study. 'He said he anticipates that there will be a need to raise rates, and is estimating approximately a $3.00 increase to the Aubum base rate. The increase to Auburn's base rate, coupled with Metro's plans to increase their rates by $0.40, will result in approximately a 12% increase in sewer rates. Metro rates will increase from $19.10 to $19.50, while Aubum's base rate is estimated to increase from $7.90 to $10.60. The $3.00 increase to Aubum's base rate was calculated as a one-time initial increase that would remain in effect for the next three, and possibly four, years. Roscoe will distribute information on the Cost of Service Study to Committee members by the end of the week and will present different rate increase scenarios and a capital expenditures update at the next Public Works Committee meeting. Committee members were encouraged to call Sewer Utility Engineer Roscoe if they had any questions. PUBLIC WORKS COMMITTEE MINUTES SEPTEMBER 27, 1999 Page 2 of 4 B. DRAFT ORDINANCE - WATER RATES For the purpose of these minutes, this item was discussed prior to Information/DiscussiOn Item A. Water Utility Engineer Lara McKinnon presented rate increase scenarios that had been revised based on direction received from the Public Works Committee at their September 15t~ meeting. It was noted that single-family rates being presented were less than previously presented. McKinnon said that in reviewing rates following the last presentation, it was discovered that in some cases, 1996 percentages had been applied to some customer classes, rather than 1998 percentages. In addition, net Cost of Service (COS) was applied to each customer class rather than the total across all classes. She reported that staff looked at capital projects and made some minor changes to the CFP totals and shifted some projects between 2000 and 2002. Lengthy discussion was held regarding projected revenue, planned capital projects, bond sales and debt service. It was confirmed that a water conservation program, anticipated to be implemented in 2001, may affect rates. At their last meeting, the consensus of the Committee was that rate increases should be adopted for the next two years, rather than three. Public Works Director Engler asked Finance Director Supler if a rate increase for two years would support planned bond sales in 2001. Supler responded that it would be more helpful to adopt an increase for the next three years, and pointed out that she believes the City has the ability to create a rate stabilization fund. Supler said she would research the process by which the rate stabilization fund will work. If revenue comes in higher than projected, the excess funds could be moved into the rate stabilization fund. Once money goes into the fund, it can only be moved out through Council direction. The Working Capital Budget for scenado B2 (Phasing in Net Cost of Service Rates for each Customer Class) was reviewed in detail, with both Engler and Supler explaining the various components that have combined to create the need for increased revenue. These components include capital projects such as the corrosion control facility, booster pump stations rehabilitations, development of Well 5B in Lakeland, rezones, and the need to bring the utility out of a net operating loss. In response to a suggestion to bond more, Supler stated that in order to get a lower interest rate, the City went into '99 declaring itself bank qualified, which means the City cannot issue more than $10 million in bonds. Councilmember Cedno stated his preference for a continuing source of money rather than long-term borrowing. Supler stated that since the utility assets have 50- to 60-year lives, the City could go to a 20-year bond and reduce principal interest payments; however, the Committee voiced a preference to keep the bonds at 10-year terms. Following additional discussion, the Committee instructed staff to prepare an ordinance for their consideration during the next City Council meeting adopting rate increases over the next three years using Scenario C2 (Phasing in Net Cost of Service for Each Customer Class with a Percentage Increase to Wholesale Base Rate) and to investigate requirements to set up a rate stabilization fund. PUBLIC WORKS COMMITTEE MINUTES SEPTEMBER 27, 1999 Page 3 of 4 C. DRAFT ORDINANCE - STORM RATES Storm Drainage Engineer Tim Carlaw presented a draft ordinance to establish increased storm utility rates using Scenario 2, which implements a single-family fiat rate and incentives for on-site storm water facilities. As directed by the Committee at their last meeting, the increase is a one-time increase rather than an incremental increase over three years. An adjustment was noted in the incentive rates, and Cadaw stated he would correct and fax the rates to Committee members by Wednesday. Following discussion, the Committee concurred with the recommended rate increase, provided the incentive rates are corrected, and directed staff to bring the ordinance for,~vard to Council. D. TRAFFIC IMPACT FEES Transportation Planner Joe Welsh gave a presentation on Traffic Impact Fees. He reviewed fee development criteria, the goals of an impact fee system, the methodology used to calculate the fees, and the pro's and con's of three fee options. He reported that $8.5 million of the costs of projects included in the City's Transportation Improvement Program (TIP) are associated with the impacts of local growth. The three options presented were as follows: Option A: Fee based on specific type of land use. Option B: Fee based on land use subcategories. Option C: Fee based on land use general categories. Staff recommended Option A because they felt it was the most equitable Examples of residential fees by jurisdiction were reviewed wherein Auburn's single-family residence fee was compared to those of five other jurisdictions. Although a total of 27 jurisdictions responded to Aubum's survey, staff focused on rate structures that could be compared equitably to Auburn's proposed rate structure. Aubum's singly-family residence fee, under all options as proposed, would be $1,355, Comparable rates in other jurisdictions for single-family residential ranged from a high of $1,671 in Redmond to a low of $643 in Bellevue. Cost comparisons for a drive-through bank, warehouse, and commercial development were also presented and discussed. It was reported that Federal Way and Sumner are in the process of developing transportation impact fees, and Covington is considering them. Traffic Engineer Mullen stated that the impact fee system attempts to capture the cost of providing new capacity on the roadway system to accommodate new local development. The proposed fee system would recover the full cost of that construction that is not covered by grants or other sources of funds. The Committee voiced concern that the proposed fee system would generate more funds than necessary. Mullen responded that it is estimated the fee would generate approximately $0.5 million per year; however, he conceded it could generate more than that in the first couple of years. Lengthy discussion ensued on the effect the impact fees would have on development in Auburn; the feasibility of lowering impact fees for certain types of businesses or in certain PUBLIC WORKS COMMITTEE MINUTES SEPTEMBER 27, 1999 P~ige 4 of 4 categories as an incentive; and the possibility of implementing the impact fee system, but allowing the developer the alternative to do a traffic impact study to verify a specific uses transportation impact. Muilen reminded the Committee that should the Comp Plan be amended to adopt corridor level of service (LOS) rather than intersection LOS, it will be difficult, and in some cases impossible, to assess SEPA mitigation fees for some developments. Following further discussion, the Committee instructed staff to draft an ordinance for imposition of traffic impact fees based on 50% of the proposed fee schedule, with provisions for developers to have the option to perform a traffic impact study, for review at their October 11 th meeting. The Committee recommended staff continue to update the transportation model and recommend refinements to the impact fees as appropriate. E. CAPITAL PROJECT STATUS REPORT There were no questions. V. ADJOURNMENT There being no further business to come before the Public Works Committee, the meeting was adjourned at 7:43 p.m. PM/bd REF. H:\ENGINEER\E99~E99-1025 (E:\MINUTES\99PW9-2)