HomeMy WebLinkAbout12-06-2001CITY OF AUBURN PUBLIC WORKS COMMITTEE MINUTES DECEMBER 6, 2001
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 Pete Lewis,
and Council/Committee member Sue Singer. Staff in attendance were Public
Works Director Christine Engler, City Engineer Dennis Dowdy, Assistant City
Engineer- Utilities Duane Huskey, Storm Drainage Utility Engineer Tim Carlaw,
Water Utility Engineer Tim Osborne and Public Works Secretary Loma Dahlke.
Guests in attendance were Tracey Dunlap, Nihat Dogan, Financial Consulting
Solutions Group, Inc; Council member Fred Poe; Brian Winslow, Boeing; Larry
Bradbury, Water District No. 111; Les Hoffer, Muckleshoot Indian Tribe.
II. CONSENT
None
III. ISSUES
None
IV. INFORMATION OR DISCUSSION
A. WATER RATE STRUCTURE/RATES
In response to a previous Committee meeting discussion regarding the need to
increase water utility revenues, Director Engler distributed a handout depicting the
ratio of the operating costs to total assets of the City's water utility. The total water
utility assets have grown from $35.7 million pre-1995 to an estimated $72 million in
2002. Despite the growth in assets, the operating costs per dollar of asset per year
has gone from $0.095 to $0.091. These figures include both depreciation and debt
service, which are growing with time. Thus, these figures provide an indication of
efficiency in maintaining services.
Engineer Osborne presented a handout comparing wholesale revenues predicted by
the 1999 Cost of Service Study to actual revenues, and showing that actual
revenues lagged predicted revenue.
Engineer Osborne also presented working capital budgets that demonstrated the
effects on water utility operations without the recommended rate revenues. Tracey
Dunlap, FCS Group, handed out a presentation of the results of the completed rate
study, covering 2002 Rate Revenue Requirements. After lengthy discussion, the
Committee focused on what could be done to educate the public on alternatives for
implementing conservation. The irrigation category is likely to be targeted for
conservation education. The Committee requested a list of which customers are
included in the irrigation classification to be presented at the next meeting. In that
way, the customers can be informed and worked with regarding conservation steps.
Ms. Dunlap handed out an updated 'q'ake or Pay" concept as presented by the IA2
partners. With a number of details needing to be resolved, action was postponed to
a later meeting.
PUBLIC WORKS COMMITTEE MINUTES DECEMBER 6, 2001
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B. WATER CAPITAL FACILITIES PLAN
The Committee discussed the individual specific projects contained in the plan and
approved them in principle.
C. STORM COST OF SERVICE, CLASS/RATE ADJUSTMENTS REQUIRED FOR 2002
Ms. Dunlap handed out a packet as presentation of the Draft Revenue Requirement
and Cost of Service Results, which indicated the tremendous growth since the most
recent storm manual had been implemented. The Committee recommended leaving
rates as they are currently set.
D. STORM CAPITAL FACILITIES PLAN
The Committee briefly discussed the projects in the Storm Capital Facilities Plan and
noted that the plan will likely require significant update after the Storm
Comprehensive Plan has been completed.
E. CAPITAL PROJECT STATUS REPORT
No discussion was held on this item.
The Committee requested that the regular meeting scheduled for December 24,
2001 be rescheduled to December 21,2001 and to start at 4:00 p.m.
V. ADJOURNMENT
There being no further business to come before the Public Works Committee, the
meeting was adjoumed at 6.35 p.m.
Submitted by Lorna Dahlke, Public Works Secretary.
Approved by the Public Works Committee on ~!z3~.
LD/bd
File: 17 (17.2)
REF. H:\ENGINEER\EOI\E01-1722 (E:\MINUTES\01PW12-1 )