[00:00:05]
>> [BACKGROUND] GOOD EVENING, EVERYONE. I'M SORRY.
[1) CALL TO ORDER]
I'M RUNNING NOT LATE BUT BARELY.I'M TRYING. I'M CALLING THIS MEETING TO ORDER.
[NOISE] MADAM CLERK, WILL YOU CALL THE ROLL?
>> MEMBER MARTINEZ, IS NOT IN PERSON.
>> WITH COUNCIL MEMBER MARTINEZ ABSENT.
>> THANK YOU, MADAM CLERK. PLEASE STAND FOR A FLAG SALUTE AND REMAIN STANDING FOR AN INVOCATION.
THERE'S SOMEONE HERE TO GIVE IT.
OTHERWISE, YOU'LL OBSERVE A MOMENT OF SILENCE.
>> WE'LL JUST OBSERVE A MOMENT OF SILENCE.
THANK YOU. YOU MAY ALL BE SEATED.
MR. CITY MANAGER, WELL, THE ITEM WILL BE ADDRESSED IS AGENDIZED.
>> ONE CORRECTION HONORABLE MAYOR, ITEM F WILL BE REMOVED AND ADDRESSED AT A LATER DATE.
>> WE ARE ALL REMOVING ITEM F. THANK YOU.
[4) a. Adopt a Resolution Authorizing the Deferral of Development Impact Fees forPopular Place Family Apartment Project for the construction of a new multi-familydevelopment consisting of 36 units as Approved in Site Plan Review (SPR) 21-000424,Assessor’s Parcel Number 487-040-59 as Provided for Under Title 13 of the WascoMunicipal Code and Government Code Section 66007. (Lara)]
WE MOVE ON TO ITEM 4 NEW BUSINESS.ADOPT THE RESOLUTION AUTHORIZING THE DEFERRAL OF DEVELOPMENT IMPACT FEES FOR POPULAR.
IS IT POPULAR PLACE OR POPLAR?
>> FAMILY APARTMENT PROJECT FOR THE CONSTRUCTION OF A NEW MULTI-FAMILY DEVELOPMENT CONSISTING OF 36 UNITS AS APPROVED IN SITE PLAN REVIEW (SPR)21-0004244.
ASSESSORS PARCEL NUMBER 4A7-040-59 IS PROVIDED FOR UNDER THE TITLE 13 OF THE WASCO MUNICIPAL CODE AND GOVERNMENT CODE SECTION 66007. MS. LARA.
>> HONORABLE MAYOR AND COUNCIL.
I WAS JUST INFORMED BY ISRAEL IF WE CAN ALL SPEAK LOUDER INTO THE MICS WHERE APPARENTLY WE'RE GETTING COMMENTS THAT LINE PEOPLE CAN'T HEAR US.
LET'S TRY TO SPEAK LOUDER AND THAT'S WHAT I'M GOING TO DO.
THE BACKGROUND OF THIS PROJECT, THE POPULAR PLACE FAMILY APARTMENT PROJECT, ALSO KNOWN AS THE SMOKETREE APARTMENTS, WILL BE LOCATED BEHIND BEST WESTERN END ON POPLAR AVENUE.
IT WAS APPROVED BACK IN NOVEMBER 16 OF 2021 WITH CONDITIONS OF APPROVAL.
ONE OF THE CONDITIONS WAS THAT THE APPLICANT HAD TO OBTAIN A WELL-SERVED LETTER FOR WATER, AND THAT IS STILL SOMETHING THAT WE'RE WORKING ON.
IT IS CONTINGENT UPON THE COMPLETION OF WATER WELL NUMBER 13.
THE APPLICANT HAS BEEN MADE AWARE OF THIS, THE WATER DEPARTMENTS WORKING WITH THEM.
BUT TODAY WE'RE HERE BECAUSE THEY'RE ASKING US TO DEFER THEIR DEVELOPMENT IMPACT FEES.
THE PROJECT CONSISTS OF 36 UNITS AND IT'S APPROXIMATELY ON 2.42 ACRES OF LAND.
THIS PROJECT WOULD HELP US MEET OUR HOUSING GOALS.
BRING MORE AFFORDABLE HOUSING TO WASCO IN AN AREA WHERE IT'S RIGHT NEXT TO COMMERCIAL, INDUSTRIAL WHERE A LOT OF THE DEVELOPMENT IS HAPPENING IN WASCO.
WHEN IT GETS DEVELOPED, FAMILIES WILL HOPEFULLY HAVE WALKING ACCESS TO A LOT OF THESE AMENITIES.
TODAY WE'RE ASKING COUNCIL TO CONSIDER THAT DEFERRING THESE IMPACT FEES, THE TOTAL FEES APPROXIMATELY, WE CALCULATED WHAT THOSE FEES WOULD BE THAT WE WOULD BE DEFERRING.
IT'S APPROXIMATELY 463,000 WITH $62 THAT WE WOULD BE DEFERRING UNTIL THE FINAL INSPECTION AND BEFORE
[00:05:03]
GIVING THE CERTIFICATE OF OCCUPANCY FOR RESIDENTS TO MOVE IN.WE'RE NOT WAIVING ANY FEES, WE'RE JUST DEFERRING THEM UNTIL THE END OF CONSTRUCTION.
>> THANK YOU, MS. LARA. ARE THERE ANY PUBLIC COMMENTS AT THIS TIME?
>> I'M SORRY. I SEE NO PUBLIC COMMENTS.
ARE THERE ANY EMAIL COMMENTS AT THIS TIME, MADAM CLERK?
>> NO EMAIL COMMENTS AT THIS TIME.
>> THANK YOU. JUST A QUICK QUESTION, MS. LARA, YOU SAID THAT, WHAT'S THE WORD YOU USED, RECOMMEND.
>> THAT'S THE WORD, YES. TO DEFER.
I'D READ YOUR REPORT AND I UNDERSTAND THIS, IT'S NOT GOING TO HAVE A NEGATIVE IMPACT IN THE CITY. IS THAT CORRECT?
>> NOT GOING TO HAVE A NEGATIVE IMPACT IN THE CITY.
>> OH, NO. THERE'S A NEGLIGIBLE, I'M TALKING VERY NEGLIGIBLE AMOUNT OF LOST INTEREST FOR THAT PERIOD OF TIME WHEN WE WOULD HAVE HAD THOSE FEES IN A BANK ACCOUNT, BUT I'M GOING TO GUESS IT'S 100 BUCKS OR LESS.
THIS IS A SUBSIDIZED PROJECT, SO THEY'RE RECEIVING SOME SPECIALIZED FUNDING FOR THIS, GREATLY HELPS THEM MOVE THAT FORWARD IN THAT MODEL.
>> THANK YOU. ANY COMMENTS FROM THE MEMBERS MAYOR PRO TEM PALLARES.
>> JUST A QUESTION. YOU SAID SUBSIDIZE THIS IS HIS HOOD OR USDA HOUSING OR SOMETHING.
>> I BELIEVE THAT THEY'RE APPLYING FOR TAX CREDITS AND THAT'S ONE OF THE FUNDS THEY ARE GOING AFTER AND PROBABLY BE A CALIFORNIA'S AFFORDABLE HOUSING GRANT.
THERE IS A LOT OF MONEY RIGHT NOW THROUGH THE STATE OF CALIFORNIA TO BUILD HOUSING.
THERE'S MULTIPLE GRANTS OUT THERE THAT I'M SURE THEY'RE PURSUING TO GET THIS PROJECT UP CONSTRUCTED.
BUT I KNOW TAX CREDIT IS ONE OF THE THINGS THAT ARE GOING TO GO AFTER.
>> WHAT IS THE ESTIMATED TIME OF COMPLETION?
>> WE'RE PROBABLY GOING TO SEE THIS.
I ANTICIPATE THAT THEY'LL PROBABLY BREAK GROUND IN THE NEXT 12 MONTHS.
BY THE TIME THEY GET DONE WITH CONSTRUCTION, I WOULD GIVE THEM AT LEAST TWO YEARS.
WE'LL PROBABLY BE SEEING SOMETHING IN THE NEXT 12 MONTHS.
THEY'LL BREAK GROUND AND THEN BY THE TIME THEY OPEN, GIVE THEM AT LEAST A YEAR OR TWO TO FINALIZE EVERYTHING AND START TAKING APPLICATIONS AND FAMILIES START MOVING IN.
>> THANK YOU. THAT'S ALL I HAVE, SIR.
>> I'M SORRY IF THIS IS A DUMB QUESTION, WHO IS BUILDING THIS? IS THIS PKJ, OR WASCO AJ.
>> THE GROUP THAT IS BUILDING IT IT'S AMJ & ASSOCIATES.
>> IT'S GOING TO BE WHA MANAGED OR AKJ. DO WE KNOW?
COUNCIL MEMBER GARCIA, BUT I CAN COME BACK AND LET THE COUNCIL KNOW.
>> MY SUSPICION IS IT WILL NOT BE AS IN AUTHORITY MANAGED.
THESE ARE PRIVATE DEVELOPERS ARE TAKING ADVANTAGE OF PUBLIC FUNDING [OVERLAPPING] TAX CREDITS AND WHATNOT, BUT I DON'T BELIEVE IT'S CONSIDERED A FULLY PUBLIC PROJECT.
>> I JUST WANTED TO CLARIFY SOMETHING FOR THE PUBLIC, THIS DEFERRAL IS BECAUSE WE NEED TO BUILD WELL 13 BEFORE WE CAN PROVIDE A WELL SERVED LETTER, IS THAT CORRECT?
>> NO. THE DEFERRAL IS BASED ON A REQUEST FROM THE DEVELOPER TO TIME THEIR FUNDING REQUIREMENTS AND PAY THE FEES THAT THEY ACKNOWLEDGED OR DO, BUT CLOSER TO WHEN THEY'VE COMPLETED CONSTRUCTION AND BEGIN THE CASHFLOW FROM OCCUPANCY.
>> THANK YOU FOR THE CLARIFICATION.
I'D LIKE TO ENTERTAIN A MOTION FOR APPROVAL.
>> IT'S BEEN MOVED AND SECONDED, WOULD YOU CALL THE VOTE BY ROLL CALL?
[00:10:02]
SECONDED BY COUNCIL MEMBER GARCIA TO ADOPT THE RESOLUTION.MOTION IS APPROVED BY FOUR AYE'S.
>> MADAM CLERK JUST THE MOTION WAS MADE, I BELIEVE, BY MEMBER GARCIA AND SECONDED BY MAYOR PRO TEM PALLARES.
>> WE MOVE ON TO ITEM C. ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE.
TO FULLY EXECUTE A COMMUNICATION.
[4) b. Adopt a Resolution Authorizing the City Manager to Sign a Letter Authorizing the County of Kern as the Lead Agency to Submit to the California Department of Resources Recycling and Recovery (CalRecycle) a Regional Application for the Household Hazardous Waste (HHW) Grant Program on its behalf. (Villa)]
>> I'M SORRY MAYOR REYNA, I BELIEVE IT'S B. 4B.
>> MY APOLOGIES. ITEM B, ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN A LETTER AUTHORIZING THE COUNTY OF KERN AS A LEAD AGENCY TO SUBMIT THE CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY, CALRECYCLE ORIGINAL APPLICATION FOR THE HOUSEHOLD HAZARDOUS WASTE, HHW GRANT PROGRAM ON HIS BEHALF.
>> GOOD EVENING, HONORABLE MAYOR, COUNCIL.
THIS ITEM ON THE AGENDA TONIGHT IS FOR HOUSEHOLD HAZARDOUS WASTE GRANT PROGRAM THAT WILL BE SUBMITTED TO THE CARRY CYCLE ON BEHALF OF THE CITY BY THE COUNTY OF KERN AS THE LEAD AGENCY.
PREVIOUSLY, ON JUNE 21ST, THE CITY AUTHORIZED THE COUNTY OF KERN FOR ITS USED OIL WASTES PROGRAM.
THE COUNTY PROVIDES ADVERTISEMENT OF THE PROGRAM AND SUBMITS ALL REQUIRED REPORTING TO THE STATE WHILE COVERING OTHER ADMINISTRATIVE RESPONSIBILITIES.
WITH THE COUNTY HAVING LARGER STAFFING RESOURCES AVAILABLE, STAFF RECOMMENDS THE ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN A LETTER AUTHORIZING THE COUNTY OF KERN AS THE LEAD AGENCY SUBMIT TO CALORIE CYCLE THEIR ORIGINAL APPLICATION FOR THE HOUSEHOLD WASTE GRANT PROGRAM ON ITS BEHALF.
WITH THAT, I'LL ANSWER ANY QUESTIONS COUNCIL MIGHT HAVE.
>> THANK YOU, MR. VEGA. ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? SEEING NONE. ARE THERE ANY EMAIL COMMENTS, MADAM CLERK?
>> MAYOR ARENA, THERE ARE NO EMAIL COMMENTS FOR THIS ITEM OR ANY OTHER AGENDA ITEMS FOR THIS MEETING.
>> THANK YOU. ANY COMMENTS FROM THE MEMBERS, MAYOR POINTE POLARIS?
>> OTHERS VARIOUS LOCATIONS THROUGHOUT KERN COUNTY.
ONE OF THEM BEING THE LOGO FACILITY, LANDFILL FACILITY, AND THERE'S DIFFERENT LOCATIONS IN BAKERSFIELD.
>> OKAY. [NOISE] THAT'S WHAT I WAS WONDERING.
IF IT WAS GOING TO BE HERE, WHERE'S IT GOING TO BE?
>> NO, THERE'S NOT, BUT GOOD QUESTION.
THAT WAS GOING TO BE A QUESTION I'LL HAVE FOR THEM IF THEY CAN HOLD AN EVENT THROUGHOUT THE YEAR OR A COUPLE OF EVENTS HERE SPECIFICALLY HERE IN MOSCOW.
THAT IS NOT A VERY GOOD QUESTION BECAUSE WE FREQUENTLY HAVE EVENTS NORTH OF US AND SOUTH OF US, BUT NOT HERE, SO.
>> THAT WOULD BE GOOD IF WE CAN GET HIM TO DO THAT.
AT THIS TIME I WOULD LIKE TO ENTERTAIN A MOTION.
>> IS THERE A SECOND? IT'S BEEN MOVED AND SECOND, MADAM CLERK, WOULD YOU CALL THE VOTE BY ROLL CALL?
>> QUOTED BY COUNCIL MEMBER LYNCH, SECONDED BY MAYOR POINTE POLARIS TO ADOPT THE RESOLUTION.
MOTION IS APPROVED BY FOUR AYES WITH COUNCIL MEMBER MARTINEZ ABSENT.
[4) c. Adopt a Resolution Authorizing the City Manager or his designee to fully Execute a Communications Site Lease Agreement with UnWired Broadband, LLC. (Hurlbert)]
ITEM C, ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO FULLY EXECUTE A COMMUNICATIONS SITE LEASE AGREEMENT WITH UNWIRED BROADBAND, LLC, MR. HUBBARD?>> YES. HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.
THERE'S AN EXISTING ANTENNAS SITE OF FOLKS HAVE BEEN USING OUR WATER TOWER AS A LOCATION FOR SOME TIME.
THERE WAS AN ORIGINAL AGREEMENT SIGNED IN 2009.
THAT WAS A FIVE-YEAR AGREEMENT.
DURING THAT PERIOD OF TIME, THAT FIVE-YEAR AGREEMENT EXPIRED, BUT ITS PROVISIONS ALLOWED FOR CONTINUATION ON A MONTH-TO-MONTH BASIS.
ALSO, AROUND THAT TIME, UNWIRED BROADBAND ACQUIRED THE COMPANY THAT ORIGINALLY WAS OPERATING THAT SITE.
[00:15:05]
THEY'VE CONTINUED SINCE THEN AND NOW ARE LOOKING TO CLEAN UP THE LEASE, PUT A NEW AGREEMENT IN PLACE, AND CONTINUE ON.THERE WAS A LONGSTANDING STEAK AND BELIEF THAT THERE WERE 15 ANTENNAS UP THERE.
THE DRAFT AGREEMENT BEFORE YOU TONIGHT ALLOWS UP TO 15 ANTENNAS UNDER THIS BASE PRICE, AS A PROVISION FOR ADDITIONAL MONTHLY FEES.
IF ADDITIONAL ANTENNA ARE ADDED, AN ANNUAL WASCO INFLATION FACTOR IS ADDED EACH YEAR TO THE BASE PRICE OF THE RENT.
WE HAVE JUST CONCERNS ABOUT THE CONGESTION ON THE TOWER AND ULTIMATELY HANGING ALL KINDS OF THINGS OFF OF THERE.
THERE'S ALSO A REQUIREMENT IF THE COMPANY WANTS TO GO ABOVE 15 ANTENNA, THAT THEY WOULD CONCLUDE A STRUCTURAL AND WIND LOADING REPORT ON THE TOWER ITSELF AND BE SURE THAT THERE AREN'T ANY STRUCTURAL STRESSES THAT CAN'T BE HANDLED EASILY.
I DON'T ANTICIPATE THAT THE STRUCTURE WAS DESIGNED TO BE FULL OF WATER.
HANGING A FEW $10.10 HONOR I DON T THINK IS GOING TO BE A PROBLEM.
THE RECOMMENDATION TONIGHT, YOU WILL NOTICE IS THAT THE APPROVAL IS SUBJECT TO A FINAL CORRECTIONS AND APPROVAL BY BOTH THE UNWIRED AND THE CITY ATTORNEY.
THE UNWIRED FOLKS HAVE A FINAL DRAFT IN HAND.
WE'RE WAITING FOR ANY CORRECTIONS OR MINOR CHANGES.
IF THERE ARE CHANGES TO CERTAINLY TO THE DOLLAR TERMS OR THE LENGTH OF THE TERM OR WHATNOT., WE'LL BRING THIS BACK TO YOU.
OTHERWISE, IF THEY'RE PURELY LEGALESE OR CORRECTIONS, AND I WOULD ASK FOR AUTHORITY TO MOVE FORWARD WITH EXECUTION.
ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? NONE. I KNOW THERE ARE NO EMAIL COMMENTS FOR ANY ITEMS ON THIS AGENDA.
MR. HUBBARD, I DO HAVE A QUESTION FOR YOU REGARDING THIS ANTENNAS ON THE WATER TOWER, I DID READ YOUR REPORT.
IT STATES THAT WE ARE PERMITTED TO PUT SOMETHING OUT THERE AS LONG AS IT DOES NOT INTERFERE WITH THEIR ANTENNAS.
MY QUESTION TO YOU IS, WE ARE LOOKING TO IMPLEMENT OUR OWN POLICE DEPARTMENT, WHICH WILL REQUIRE US TO INSTALL EQUIPMENT ON THAT WATER TOWER.
DO YOU ANTICIPATE ANY ISSUES WITH THAT AT ALL?
>> NO. IN FACT, I HAD A MEETING YESTERDAY WITH SOMEONE FROM THE RADIO INDUSTRIES AND ASKED THAT SPECIFIC QUESTION.
WE LOOKED AT THE TOWER, LOOKED AT THE PLANS FOR WHAT UNWIRED HAS ON THE TOWER.
THERE ARE A COUPLE OF THINGS THAT HELP US OUT IN THIS REGARD.
ONE IS THE WEIGHT LOADING OR THE WIND LOADING IS NOT A CONCERN.
POLICE REPEAT A TYPE OF ANTENNA.
WE WOULD WANT TO HAVE AT THE HIGHEST SPOT WHERE THERE ARE NO LEAST ANTENNA LOCATIONS.
WE WOULD WANT TO PUT SOMETHING ON THE VERY TOP.
THE FINAL THING IS THEY OPERATE IN COMPLETELY DIFFERENT FREQUENCIES.
IT'S UNLIKELY WE WOULD HAVE A SIGNAL INTERFERENCE FROM ONE SET OF ANTENNA TO SOMETHING YOU WOULD WANT TO PUT UP THERE.
>> IN ESSENCE, THERE IS NO RISK TO OUR ABILITY TO PUT A REPEAT OUT THERE FOR US TO BE ABLE TO COMMUNICATE VIA RADIOS.
>> THAT IS MY STRONG BELIEF AT THIS POINT IN TIME.
WE HAVE THE OPPORTUNITY TO SAY NO, AT SOME POINT WITH UNWIRED, NOT AN UNLIMITED LICENSE TO PUT 100 ANTENNA, AND THEY'RE LIMITED TO THAT RAIL AROUND THE PERIPHERY NOT THE LEGS OR AT THE TOP OF THE TOWER, OR ANYTHING ELSE, SO IT'S SPECIFICALLY UNREAL.
>> VERY GOOD. I DID READ THAT THEY ARE LOOKING TO HAVE A 30-YEAR IN THE FUTURE.
>> YES. THEY WANT TO LOCK THAT UP.
THIS ACQUISITION HAPPENED SOMETIME AFTER 2009, IS NOT UNUSUAL IN THIS INDUSTRY.
IT'S A CONSTANT LEAPFROGGING OF ASSETS.
I WOULD NOT BE SHOCKED IF THERE WAS SOME CHANGE IN OWNERSHIP DURING THAT 30 YEARS, MULTIPLE TIMES.
ANY COMMENTS FROM THE MEMBERS, MEMBER PER ATTEMPT MAYOR POINTE POLARIS?
>> YOU TOOK THE QUESTION OUT OF MY MOUTH.
I WAS CONCERNED ABOUT THAT AND OUR ABILITY TO USE THE LIGHTING THAT WE'VE INSTALLED IN THE PAST, AND HOPEFULLY, WE'LL BE ABLE TO PREPARE IN THE FUTURE.
THERE'S A CHANCE THAT SOME OF THE FOLKS THAT WE WILL BE
[00:20:02]
HIRING IN OVER THE NEXT PERIOD OF TIME TO WORK ON ANTENNAS UP THERE, THE CITY'S ANTENNAS AND CAMERA.CAN LOOK AT THAT AND GIVE US SOME HELP WITH THE LIGHTING SYSTEM.
>> I BELIEVE THAT THE LIGHTING IS MENTIONED IN THE AGREEMENT OR THE LIGHTING OF THE TOWER, I READ THAT. MEMBER LYNCH.
>> AT THIS TIME I WOULD LIKE TO ENTERTAIN A MOTION FOR APPROVAL.
>> MADAM CLERK HAS BEEN MOVED AND SECOND, WOULD YOU CALL THE VOTE BY ROLL CALL?
>> MOTION BY COUNCIL MEMBER GARCIA SECONDED BY COUNCIL MEMBER LYNCH TO ADOPT THE RESOLUTION.
MOTION IS UNANIMOUSLY APPROVED.
MOTION IS APPROVAL OR FOUR I'S WITH COUNCIL MEMBER MARTINEZ ABSENT.
>> THANK YOU, MADAM CLERK. ITEM D, APPROVE,
[4) d. Approve the Extention of the Complimentary Dial-a-Ride Services from September1, 2022, to December 31, 2022, and Adopt a Resolution Authorizing the City Manager or his designee to Appropriate Corona Virus State and Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA) of 2021. (Martinez)]
THE EXTENSION OF THE COMPLIMENTARY DIALORIZED SERVICES FROM SEPTEMBER 1ST, 2022 TO DECEMBER 31ST, 2022 AND ADOPT THE RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO APPROPRIATE CORONAVIRUS STATE [NOISE] AND RECOVERY FUNDS UNDER THE AMERICAN RECSCUE PLAN ACT, ARPA OF 2021.MR. HAROLD, I DON'T SEE MS. MARTINEZ HERE, SO I IMAGINE YOU'RE GOING TO BE SPEAKING ON HER BEHALF.
>> [OVERLAPPING] MS. MARTINEZ IS A ZOOM ATTENDEE.
>> SHE IS ATTENDING VIRTUALLY.
I WANT TO CHECK WITH HER HOW HER AUDIO CONNECTION IS WORKING.
MARIA, ARE YOU HEARING EVERYTHING OKAY? YOU'RE MUTED AT THE MOMENT.
MAYBE SHE ISN'T. [OVERLAPPING]
>> HE IS MUTED [OVERLAPPING] WE CAN'T SEE HER.
>> WE ARE PREPARED TO TAG TEAM THIS.
A COUPLE OF THINGS HERE, ONE IS THE COUNCIL HAD PREVIOUSLY APPROVED THIS FREE SUMMER RIDES PROGRAM AND THAT'S BEEN VERY SUCCESSFUL.
WE'VE SEEN AN UPTAKE IN RIDERSHIP, WHICH THAT'S THE GOOD NEWS.
THE OTHER NEWS IS THAT WE EXCEEDED OUR PROJECTION ON WHAT THAT LAST REVENUE WOULD BE BY A FEW $100.
TONIGHT WE'RE ASKING FOR A COUPLE OF THINGS, ONE IS AN EXTENSION OF THE FREE RIDERSHIP PROGRAM FOR A FEW REASONS.
ONE IS WE WOULD LIKE TO CONTINUE THIS MOMENTUM AND INTRODUCING MEMBERS OF THE COMMUNITY THAT HAVEN'T USED THE SERVICE IN THE PAST.
WE THINK IT'S A GOOD PART FOR THE COMMUNITY AS WELL.
WE ALSO WOULD NEED TO TAKE SOME TIME TO CORRECT OUR RATE STRUCTURE FOR THE DUAL-RIDE SYSTEM.
THERE IS A RULE WE'RE STILL RESEARCHING EXACTLY WHEN IT CAME INTO FORCE ABOUT THE RATIO OF REGULAR RIDERSHIP COST VERSUS THE ADA OR SENIOR COSTS WHICH WE OFFER.
THE RATIO IS SUPPOSED TO BE 50 PERCENT REGULAR TO THE DISCOUNTED PRICE.
RIGHT NOW, OUR GENERAL PRICE IS 175.
THE DISCOUNT IS $1, NOT 50 PERCENT RATIO.
WE CAN'T FIX THAT WITHOUT A 218 PROCESS, 218 PROCESS TAKES A COUPLE OF MONTHS, OPTIMISTICALLY.
GIVEN THE INCREASED RIDERSHIP, WE ANTICIPATE THAT THE REVENUE THAT WILL FORFEIT DURING AN EXTENDED FREE RIDE PERIOD THROUGH THE END OF THIS YEAR THROUGH DECEMBER 31ST, IS APPROXIMATELY $7,200.
IF REQUIRED, THAT CAN BE BACK FUNDED THROUGH RPA FUNDS.
IF WE USE LESS THAN THAT, WE CAN REFUND THE UNUSED PORTION BACK INTO OUR RPA BALANCE.
THAT GIVES US A CHANCE TO GET OUR RATES BACK IN LINE, GET OUR POLICIES, WE HAVE SOME OTHER RIDERSHIP POLICIES AND THINGS THAT WE'D LIKE TO CLEAN UP IN THE MEANTIME ALSO.
THE ASK IS TO EXTEND THE FREE RIDERSHIP THROUGH DECEMBER 31ST AND AUTHORIZE THE APPROPRIATION OF THE NECESSARY RPA FUNDS TO DO THAT, AND ALSO TO DIRECT STAFF TO MOVE FORWARD WITH A RATE ADJUSTMENT PROCESS THROUGH THE 218 PROCESS WITH THE ANTICIPATION LIVE DATE OF THAT OF BEING JANUARY 1ST.
ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? SEEING NONE, NONE ARE IN THE MAIL EITHER. DO YOU HAVE A COMMENT?
[00:25:08]
[INAUDIBLE], AND MY MIC WASN'T WORKING BETTER.
I THINK I'M GOOD TO GO. MY APOLOGY [INAUDIBLE]
>> DID I DO OKAY OR DID I MISS SOMETHING IMPORTANT?
>> NO, YOU DID GOOD. I'M SORRY, I JUST WANTED TO MAKE SURE MY MIC IS WORKING INCASE ANY QUESTIONS CAME ALONG.
I DID READ YOUR REPORT AND I'M REALLY EXCITED ABOUT THE FACT THAT WE'RE GOING TO EXTEND THIS PERIOD OF FREE RIDING TO THE END OF THE YEAR.
I THINK THAT I SEE THE BUS EVERYWHERE NOW.
SEVERAL TIMES A DAY I SEE THE BUS RIDING AROUND, OR WAITING FOR SOMEBODY.
THAT IS LETTING PEOPLE KNOW THAT WE HAVE THE SERVICE AND THEY'RE TAKING ADVANTAGE OF IT BECAUSE IT'S FREE.
BUT MY SUSPICION IS THAT WHEN THIS FREE PERIOD ENDS, THOSE RIDERS WILL WANT TO CONTINUE TO RIDE AND THEY WILL PAY FOR THE SERVICE.
>> I THINK THAT'S PROBABLY TRUE.
MAYBE NOT 100 PERCENT, BUT MOST OF THEM. [OVERLAPPING].
>> I THINK A LARGE PERCENTAGE OF THEM.
>> I'D LIKE TO FOLLOW UP WITH YOUR RECOGNITION THAT YOU SEE THEM OUT IN ABOUT MORE.
OUR DRIVERS ARE DOING A GREAT JOB, OUR NEW DRIVER EVA IS FIT RIGHT IN WITH THE TEAM AND DOING A GREAT JOB.
I'M NOT AWARE OF ANY COMPLAINTS OR ISSUES WITH OUR DRIVERS AT ALL OVER THE LAST COUPLE OF MONTHS.
>> I THINK I SEE EVA FOREVER ON THE ROAD.
[LAUGHTER] ANYWAY, I ALSO READ YOUR REPORT REGARDING THE INCREASE.
WHERE YOU ARE PROPOSING POSSIBLY INCREASING THE REGULAR RATE TO OFFSET THAT 50 PERCENT DIFFERENCE THAT IS SUPPOSED TO EXIST WITHIN REGULAR RATE AND THE ID ARRAY.
>> I DON T THINK YOU SHOULD INCREASE THE RATE.
I THINK YOU SHOULD LOWER THE RATE OF THE ADA.
ONE CONCERN MIGHT BE THAT WE ARE GOING TO HAVE A LOWER BARE BOX RATIO.
BUT MY IDEA IS THAT YOU'RE GOING TO INCREASE YOUR RIDERSHIP.
IN DOING SO, YOU WILL GAIN ADDITIONAL REVENUE AND BE ABLE TO MEET THAT.
I WOULD PROPOSE TO YOU THAT YOU TRY IT FOR ABOUT 6 MONTHS AND YOU CAN ALWAYS REDIRECT RATHER THAN INCREASING BECAUSE EVERYTHING IS INCREASING.
EVERYBODY IS PAYING A LOT FOR GAS, A LOT FOR FOOD.
WE HAD A PROBLEM WITH OUR BARE BOX RATIO BEFORE.
IT'S NOT GOING TO GET BETTER IF YOU INCREASE THE RATE.
IT'S ACTUALLY POSSIBLY GOING TO GO THE OTHER WAY BECAUSE YOU'RE GOING TO POSSIBLY LOSE SOME RIDERS.
>> I COME FROM THE RETAIL INDUSTRY AND I COME FROM DISCOUNTERS.
I WORK IN THE RETAIL INDUSTRY, DISCOUNT INDUSTRY ALL THE TIME.
THEY ALWAYS SOLD FOR LESS, BUT WE SOLD MORE.
MY IDEA IS THAT YOU WILL GAIN RIDERSHIP AND THAT WILL OFFSET THAT DECREASE.
JUST A THOUGHT OUT THERE, SOMETHING TO CONSIDER.
>> YES. YOU MIGHT HAVE SEEN IN THE REPORT THAT THE DOOR WAS LEFT OPEN.
THERE WAS A PROPOSAL TO EITHER ADJUST THE GENERAL RATE BY 25 PERCENT OR SOME OTHER ADJUSTMENT TO BOTH RATES TO ACHIEVE THIS 50 PERCENT DISCOUNT.
ABSOLUTELY, WE'LL LOOK AT THAT OPTION.
>> WITH THE UNDERSTANDING THAT YOU CAN ALWAYS MAKE A CORRECTION.
LET'S SEE. ARE THERE ANY QUESTIONS FROM THE MEMBERS? MAYOR JOHN PALLARES?
>> NO QUESTIONS. I JUST WANT TO ALSO ASK OF THE CITY CLERK'S OFFICE, ALL THE STAFF, I KNOW THEY'VE ALSO EXPERIENCED THIS INCREASE IN THAT.
I KNOW THAT'S BEEN A LOT ON THEM AS WELL.
>> THANK YOU. I WILL MOVE THIS FORWARD.
>> MADAM CLERK, WOULD YOU CALL THE VOTE BY ROLL CALL.
[00:30:01]
SECONDED BY MAYOR PALLARES, TO APPROVE THE AMENDED AMOUNT AND THE EXTENSION OF THE COMPLIMENTARY RIGHTS.MOTION IS APPROVED BY FOUR AYES WITH COUNCIL MAYOR MARTINEZ ABSENT.
[4) e. Review and direction regarding the Water and Sewer Utility Rate Study Update.(Villa)]
ITEM E, REVIEW DIRECTION REGARDING THE WATER AND SEWER UTILITY RATES STUDY UPDATE, MR. BEAGLE.>> GOOD EVENING, MAYOR AND COUNCIL.
THE WATER AND SEWER UTILITY RATE STUDY WAS FIRST PRESENTED TO COUNCIL ON JUNE 21ST.
FROM THE MEETING, STAFF RECEIVED DIRECTION TO REVISE RATE OPTIONS PRESENTED AT THE TIME.
L&T CONSULTANTS HAVE DONE, AND WILL BE PRESENTING TONIGHT.
WITH THAT, I'LL HAND IT OVER TO ALISON, WHICH IS ONLINE.
[OVERLAPPING] SHE'LL DO A POWERPOINT PRESENTATION FOR YOU.
>> GOOD EVENING HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL.
FIRST, I WANTED TO MAKE SURE THAT YOU CAN HEAR ME [NOISE] AND SEE ME ADEQUATELY.
>> I RECEIVED SOME FEEDBACK THAT, BE LOUD ENOUGH, SO I WANTED TO MAKE SURE THAT YOU CAN HEAR EVERYTHING. I'M GLAD TO BE BACK.
I WAS LAST HERE ON JUNE 21ST, TO GIVE SOME VERY INITIAL PRELIMINARY RATE OPTIONS TO THE CITY COUNCIL.
YOU GAVE US A LOT OF VERY GOOD FEEDBACK.
I LOOKED AT ALL THE NUMBERS AGAIN, I LOOKED AT A LOT OF THE CUSTOMER DATA IN MORE DETAIL, AND I HAVE REVISED WATER AND SEWER RATES TONIGHT.
MY ROLE IS TO BE THE CALCULATOR, SO I CAN RUN THE NUMBERS A LOT OF DIFFERENT WAYS.
WE CAN LOOK AT DIFFERENT ASSUMPTIONS.
THIS IS REALLY A REVIVAL OF GREAT PROPOSAL, BUT WE'RE VERY OPEN TO DIFFERENT SCENARIOS, AND OPTIONS, AND RUNNING THE NUMBERS HOWEVER WE NEED, TO BEST MEET THE NEEDS OF YOUR COMMUNITY.
TONIGHT, SOME OF THE SLIDES WILL BE THE SAME AS THE PRIOR PRESENTATIONS, BUT A LOT OF THE SLIDES HAVE MORE INFORMATION OR PRESENTS MAYBE SOME TOPICS WE TALKED ABOUT LAST TIME, BUT IN MORE DETAIL.
I WILL TRY TO EXPLAIN WHAT SLIDES ARE NEW, AND WHICH ARE MORE OF A REMINDER OF WHAT WE DISCUSSED LAST TIME.
>> ALISON, I'M SORRY TO INTERRUPT YOU.
LET THE RECORD REFLECT THAT MR. MARTINEZ IS NOW PRESENT.
THANK YOU. SORRY FOR THE INTERRUPTION.
>> THIS SLIDE IS JUST A REMINDER, SAME AS LAST TIME.
SEWER RATES LAST INCREASED IN 2007.
YOUR RATE PAYERS HAVE GOTTEN AN INCREDIBLE BENEFIT ALL THESE YEARS, WITH NO SEWER RATE INCREASE.
WATER RATES WERE LAST INGESTED IN 2017.
AGAIN, QUITE A GOOD NUMBER OF YEARS, FIVE YEARS WITH NO WATER RATE INCREASES.
ALTHOUGH, WE ARE LOOKING AT RATE INCREASES AS I MENTIONED, MANY OTHER SECTORS OF OUR ECONOMY ARE INCREASING IN PRICE.
THE UTILITY RATES, IN PARTICULAR, HAVE REMAINED THE SAME FOR QUITE SOMETIME.
WATER AND SEWER RATES ARE ENTERPRISE FUNDS.
THEY FLOW THROUGH ENTERPRISES, WHICH MEANS, THEY DO NEED RATE ADJUSTMENTS FOR POSSIBLE SERVICE.
THE RATE STUDY IS A FIVE-YEAR PERIOD, CONSISTENT WITH AN OPPOSITION TO 18, THAT'S THE LEGAL STATUTE GOVERNING HOW WATER AND SEWER RATES CAN BE ADOPTED.
WE'RE PROPOSING A FIRST RATE CHANGE THIS JANUARY 1ST, FOLLOWED BY JULY 1ST, WHICH MEANS IT'S AFTER THAT.
THE JULY 1ST BENEFIT IS THAT, IT COINCIDES WITH THESE FOUR YEARS.
THIS PROCESS IS THE SAME AS THE SOLID WASTE RATE SETTING PROCESS CONDUCTED RECENTLY, WHERE RATES MUST BE REASONABLE, MUST BE BASED ON ACTUAL COSTS, AND THEY MUST BE VERY PROPORTIONAL TO YOUR CUSTOMERS.
THERE'S ALSO A PROCEDURAL HURDLES YOU HAVE TO GO THROUGH WITH PUBLIC PROTESTS, VALIDATING IN A PUBLIC HEARING.
THIS SLIDE IS MOSTLY THE SAME AS LAST TIME AS WELL.
AT THE HEART OF RATE STUDY IS THE COST OF SERVICE.
HOW ARE YOUR UTILITIES FUNCTIONING? IS THEIR FINANCIAL HEALTH STRONG, AND THE GOOD ANSWERS IS YES.
YOUR WATER FUND HAS VERY HIGH CASH RESERVES.
YOU'RE COVERING COSTS CURRENTLY.
THERE IS NO DEBT EXISTING OR PLANNED, AND THE REASON FOR THAT IS, WE'VE BEEN VERY FORTUNATE TO HAVE A GRANT FUNDING OR MANY UPCOMING CAPITAL IMPROVEMENTS TO THE WATER FUND.
[00:35:05]
I DO RECOMMEND A SLIGHT REVENUE INCREASE TO KEEP UP WITH INFLATION AND AN INITIAL DRAW ON YOUR RESERVES.YOU HAVE 11 MILLION IN CASH, AND ONLY 2-3 MILLION, AND THAT WILL PROVIDE BREAKING RATE INFLATION AT DIFFERENT RATES STRUCTURAL CHANGES, WHICH WILL IMPACT HIGH WATER USERS, DIFFERENT FROM WHAT WATER USERS, IT'S A BIG CHANGE.
THE IDEA IS, SOME OF THIS FUNDING IS BREAKING INFLATION, OR HOPES TO FACE SOME OF THOSE INFLATION RATES.
ALTHOUGH, WE ARE SPENDING DOWN SOME FUNDS, WE WILL LEAVE ADEQUATE FUNDING IN THE WATER RESERVE FOR ANY FUTURE CAPITALS.
LAST TIME, WE TALKED A LOT ABOUT WHY ARE THE RATING FACTORING THE UNITS.
I JUST TOLD YOU THAT I RECOMMEND MINOR INFLATIONARY ADJUSTMENT TO THE POOL AND TO THE WATER FUND AS A WHOLE.
WHEN WE STARTED LOOKING INTO RATE AND TAX IN JUNE, SOME CUSTOMERS WERE GETTING POTENTIALLY VERY SIGNIFICANT RATE ADJUSTMENTS, AND WHY IS THAT? WE'RE ONLY LOOKING AT INFLATION INFORMATION THAT DEPENDS ON THAT.
I WANT TO SPEND SOME TIME TONIGHT IN THIS PRESENTATION EXPLAINING WHY THERE ARE THESE MISTAKES AND POTENTIAL IMPACTS.
THE FIRST IMPACT IS DUE TO WATER USAGE.
THIS CHART SHOWS ALL THE DIFFERENT TYPES OF WATER CUSTOMERS, RESIDENTIAL TO COMMERCIAL, AND NON-RESIDENTIAL.
SINGLE-FAMILY CUSTOMER CLASS USES ABOUT 68 PERCENT OF THE WATER, ALL THE WATER THAT YOU'RE SELLING FOR YOUR SYSTEM.
THEN I COMPARE THAT TO THE TOTAL AMOUNT OF REVENUE COLLECTING FROM ALL THE DIFFERENT CUSTOMERS.
EVEN THOUGH THE RESIDENTIAL CUSTOMER CLASS IS USING ABOUT 68 PERCENT OF THE WATER, THEY'RE ONLY PAYING 60 PERCENT OF THE RATES.
WE HAVE THIS DISPROPORTIONATE LEVEL OF USE OF THIS SYSTEM COMPARED RATES PAID AND REVENUE COLLECTION.
THE PROPOSED RATE STRUCTURE REALIGNS THE RATES TO BE PROPORTIONAL WITH WATER USE AND HOW THOSE ARE TAKING SERVICES.
THAT'S ONE OF SEVERAL FACTORS THAT ARE ALL FACTORED INTO THIS.
YOU'RE CURRENTLY COLLECTING ABOUT 3.2 MILLION IN RATE REVENUE, WHERE RESIDENTIAL CUSTOMERS ARE PAYING ABOUT 60 PERCENT OF THAT.
WE STILL COLLECTED AT 3.2 MILLION IN REVENUE THAT YOU'RE CURRENTLY COLLECTING.
BUT WHAT IF WE RECONFIGURED THE RATES SO THAT ALL THE CUSTOMERS ARE EXACTLY PROPORTIONAL TO THEIR WATER RATES? JUST AT ADJUSTMENT, JUST BASED ON WATER USAGE, THE RESIDENTIAL CUSTOMER CLASS WOULD GO UP ABOUT 12 PERCENT.
WE'RE GOING TO TALK ABOUT A LOT OF DIFFERENT FACTORS THAT ARE CONTRIBUTING TO, ESPECIALLY SINGLE-FAMILY RESIDENTIAL CUSTOMER POTENTIAL RATE INCREASES, AND THIS ONE RIGHT HERE IS 12 PERCENT OF THAT TOTAL POTENTIAL RATE ADJUSTMENT.
WHAT WE CAN SEE ON THE RIGHT HAND OF THE CHART ARE ALL THE POTENTIAL RATE ADJUSTMENTS DUE TO RECONFIGURING TO MATCH WATER USAGE, AND YOU SEE THAT THERE IS THIS GREAT SHIFTING FROM THE NON-RESIDENTIAL CUSTOMERS GETTING A DECREASE.
THEN RESIDENTIAL WITH MULTIFAMILY AND SINGLE-FAMILY RECEIVING INCREASES.
THIS WOULD BE A POTENTIAL FIVE-YEAR PLAN.
THE FIRST ILLUSTRATION HERE IS THE SINGLE-FAMILY CUSTOMERS GOING FROM THEIR CURRENT RATE REVENUE OF 1.9 MILLION TO ABOUT 2.16 MILLION, AND THAT'S ADJUNCT YOU GET PROPORTIONAL TO WATER USE.
THEN EACH OF THE FIVE YEARS, THEY'RE POTENTIALLY UP TO 18 FIVE-YEAR RATE PLAN.
IT WOULD BE THAT SMALL INFLATIONARY INCREASE.
SO THIS TYPE OF RATE PLAN WOULD BE ABOUT A 25 PERCENT INCREASE OVER FIVE YEARS.
BUT WHAT WE'RE PROPOSING TO DO IS, INSTEAD OF GOING 12 PERCENT IN YEAR 1 TO ALIGN WITH WATER USE, WE'RE GOING TO MORE SLOWLY PHASE THAT IN.
WE'RE ALSO GOING TO HAVE A SMALL AMOUNT OF SYSTEM GROWTH.
WE JUST HEARD PRESENTATIONS ABOUT THE NEW APARTMENT COMPLEX THAT WAS HAPPENING A MINOR AMOUNT,
[00:40:04]
BUT HAVE A PERCENT GROWTH IN YOUR SYSTEM FOR THAT AS WELL.BUT INSTEAD OF THAT IN ONE OR TWO-YEAR VERY STEEP JUMP IN REVENUE COLLECTION, WE ARE PROPOSING A MORE GRADUAL FIVE-YEAR PHASE-IN.
THAT PHASE-IN ALSO USES ABOUT TWO MILLION OF EXISTING REVENUE THAT WE TALKED ABOUT TO HELP MITIGATE SOME REVENUE MESS.
LAST TIME I THINK I JUGGLED OUR TERMS A BIT WHEN WE'RE TALKING ABOUT GALLONS VERSUS 100 CUBIC FEET AND THE AMOUNT OF WATER THAT CUSTOMERS USE OVER THERE, THREE DIFFERENT BILLING PERIODS THROUGHOUT THE YEAR.
I WANTED TO TAKE A MINUTE AND WALK THROUGH SOME OF THE TERMS AND PHRASES I'LL USE THROUGHOUT THE PRESENTATION.
YOUR WATER BILLING IS ON A CUBIC FEET OR 100 FEET CUBIC BASIS.
ONE CUBIC FOOT EQUALS ABOUT 7.48 GALLONS AND SO MULTIPLY BY 100.
A HUNDRED CUBIC FEET IS 748 GALLONS.
THAT'S HOW MOST PEOPLE READ THEIR BILL, THEY SEE THE NUMBER OF WATER UNITS THAT HAVE BEEN USED, AND WHAT UNITS ARE, AND INCREMENTS OF 748 GALLONS.
THAT PRESENTATION I TRIED TO BE VERY CAREFUL ABOUT REALLY EMPHASIZING 100 CUBIC.
MAYBE COULD BE MORE CLEAR ABOUT WHAT TERMS WE'RE USING.
>> ALISON, I'M SORRY TO INTERRUPT YOU.
WOULD YOU GO BACK TO THAT SLIDE? I WANT TO TAKE A PICTURE OF IT.
NO. DOES OUR STAFF HAS THIS PRESENTATIONS WHERE I CAN GET IT PRINTED?
>> IF YOU COULD JUST GO ONE BACK?
>> YEAH. RIGHT THERE. PERFECT. THANK YOU. PLEASE PROCEED.
>> WE'RE GOING TO TALK A LOT ABOUT HOW SCHOOL SIZE AND GALLONS PER PERSON PER DAY AND HOW MANY 100 CUBIC FEET THAT IS IN A TYPICAL BILLING CYCLE.
I DID THE RESEARCH TRYING TO DETERMINE THE WHOLE HOUSEHOLD SIZE IN THE CITY.
THIS WAS THE CENSUS DATA THAT I WAS ABLE TO FIND. HE DID IN 2021.
I WAS SEEING AN ESTIMATED OCCUPANCY OF ABOUT 3.4 PEOPLE PER HOME IN THE CITY OF WASCO.
THAT IS THE ESTIMATED HOUSEHOLD SIZE THAT I USE FOR THE POPULATION.
CURRENTLY TYPICAL AVERAGE RESIDENTIAL MONTHLY USE IS 15 AND THAT'S AVERAGING ALL MONTHS OF THE YEAR.
WINTER'S, LAST SUMMER'S MORE [INAUDIBLE].
THAT EQUATES TO ABOUT 110 GALLONS PER PERSON PER DAY.
WE'RE ASSUMING A HOUSEHOLD SIZE ABOUT 3.4 PEOPLE.
BUT THE CURRENT RATE STRUCTURE INCLUDES BASE ALLOTMENT OF WATER 25 UNITS, WELL ABOVE THE AVERAGES OF 15, THE 25 UNITS EQUATES TO ABOUT 183 GALLONS PER PERSON PER DAY.
WE ARE RECOMMENDING A PHASE DOWN FROM THE 25 UNITS IN THE BASE ALLOTMENT CURRENTLY TO SEVEN UNITS.
THAT EQUATES TO ABOUT 51 GALLONS PER PERSON PER DAY.
THAT'S AN EFFICIENT INDOOR WINTER PERIOD USAGE.
THIS CHART IS THE SAME AS THE PRIOR PRESENTATION.
IT EXPLAINS YOUR CURRENT WATER RATE STRUCTURE.
ALL THE DIFFERENT TYPES OF CUSTOMERS, EACH HAVE A MINIMUM SERVICE FEE.
THE SERVICE FEE INCLUDES A BASE VOLUME OF WATER AND I PUT THE UNITS AS 100 CUBIC FEET TO CCF.
THEN ANY WATER USE ABOVE THAT BASE ALLOTMENT IS BUILT ON A PER UNIT BASIS $4.03.
AT BASE ALLOTMENT WAS ORIGINALLY DESIGNED TO THAT ABOUT 75 PERCENT OF USE, BUT IT CURRENTLY ONLY INCLUDES ABOUT 90 PERCENT.
VERY FEW CUSTOMERS ARE GETTING OVER THAT BASE ALLOTMENT.
THAT'S WHAT WAS CREATING THE ACTUAL WATER USE OVER THE PRIOR CALENDAR YEAR.
BLUE BARS IS THE TOTAL OF THE WATER USE WITHIN THE BASE ALLOTMENT,
[00:45:04]
ALL THE DIFFERENT CUSTOMERS.THEN THE ORANGE PIECE, THE AMOUNT USED ABOVE 25 BASE ALLOTMENT.
YOU CAN SEE THERE'S VERY LITTLE OF ORANGE BOXES.
VERY LITTLE USE ABOVE BASE ALLOTMENTS AND MOST TYPICALLY ARE PERSON IN THE SUMMER DURING THE HIGH SEASON PERIODS.
THIS WAS A CHART I SHOWED LAST TIME.
IT'S THE AVERAGE SINGLE-FAMILY WATER USE FOR EACH MONTH OF THE YEAR.
BUT I ADDED THE CHART HERE, THIS IS A NEW ONE.
THE BLUE LINE IS THE THREE-YEAR AVERAGE OF MONTHLY WATER USE PER SINGLE-FAMILY CUSTOMERS.
THE ORANGE LINE IS THE BASE ALLOTMENT OF 25 CCF.
EVEN DURING HIGH WATER USAGE PERIOD IN AUGUST, SEPTEMBER, JULY, OCTOBER, THE TYPICAL CUSTOMER IS NOT GETTING ABOVE THE BASE ALLOTMENT.
BUT I'VE ADDED THE ACTUAL DATA POINTS FOR EACH OF THE THREE YEARS.
THE REASON I DID THIS WAS BECAUSE I WANTED TO ILLUSTRATE TO YOU THAT THERE ARE SOME PERIODS IN THE RECENT PAST OR THE AVERAGE SINGLE-FAMILY CUSTOMER USAGE DURING THE WINTER WAS CLOSER TO SEVEN OR EIGHT UNITS PER HOUSEHOLD.
LAST TIME WE TALKED A LOT ABOUT, IS SEVEN UNITS OF THE BASE ALLOTMENT REASONABLE? CAN A TYPICAL FAMILY ACTUALLY RUN THEIR HOUSEHOLD ON THAT USAGE OR ROUGHLY THAT USAGE? THEN WE SEE THAT THE DATA DOES SOMEWHAT SUPPORT THAT MAYBE RAN UP TO EIGHT BUT 7-8 UNITS OF WATER HAS BEEN ACHIEVED IN THE RECENT PAST FOR THE CITY OF WASCO.
RECOMMENDATIONS ON THIS CHART ARE THE SAME AS LAST TIME.
WE ARE PROPOSING TO REDUCE THE BASE LEVEL WATER FOR SINGLE-FAMILY CUSTOMERS FROM 25 UNITS TO SEVEN.
THAT IS CONSISTENT WITH EFFICIENT INDOOR WATER USE.
THE STATEWIDE TARGET IS 52.5 GALLONS PER PERSON PER DAY AND THEN WILL EVENTUALLY BE REDUCED TO 50.
FIFTY-ONE GALLONS PER DAY IS ASSOCIATED WITH SEVEN UNITS OF WATER BASE ALLOTMENT WOULD BE CONSISTENT WITH THAT TARGET.
VARIOUS CIVIL ENFORCEMENT POTENTIALLY COMING DOWN A LOT.
I ALSO WANTED TO POINT OUT THAT THERE IS SOME DISCUSSION ABOUT WATER PROVIDERS THAT HAVE THREE BASE ALLOTMENT LIKE YOUR RATES OF [INAUDIBLE] AND IF THAT THREE BASE ALLOTMENT HAS NON-REVENUE WATER THAT HAS TO BE UNDER SB 555.
>> ALISON, I'M HAVING TROUBLE HEARING YOU THIS LAST FEW SENTENCES THAT YOU EXPRESS, I CAN'T HEAR YOU.
>> CAN YOU GET CLOSER TO THE MICROPHONE?
>> SURE. WHAT WE'RE PROPOSING IS THE ALLOTMENT TO BE REDUCED FOR SINGLE-FAMILY CUSTOMERS FROM THE 25 UNITS TO SEVEN UNIT OF WATER CCF PER MONTH.
THAT ROUGHLY EQUALS THE STATEWIDE TARGET, WHICH IS BEING REDUCED FROM ABOUT 52.5 GALLONS PER CAPITA PER DAY DOWN TO 50.
THE SEVEN UNITS OF WATER IS ROUGHLY 51 GALLONS PER CAPITA PER DAY, SO IT HITS THAT TARGET.
IF THERE'S SOME DISCUSSION THAT I'VE BEEN HEARING FROM WATER PROVIDERS THAT SB 555 COULD COUNT, NON-BILL FREE WATER ALLOTMENT TYPE OF WATER IS NON-REVENUE WATER THAT WOULD HAVE AUDITED.
THIS REDUCTION OF THE ALLOTMENT HELPS WITH THAT POTENTIAL ISSUE, THAT COMPLIANCE ISSUE.
ALL OF OUR CUSTOMERS ARE PROPOSED TO ALSO GET REDUCTIONS IN THEIR BASE ALLOTMENT TO REFLECT THEIR INDOOR OR LOW USE EFFICIENT WATER USAGE PERIOD.
THE BENEFIT OF THIS TYPE OF RATIO FACTOR IS, IT'S MORE OF A CONSERVATION HIGH SIGNAL.
BUT IT ALSO GIVES CUSTOMERS MORE CONTROL OVER THEIR BILLS.
AS I'VE SHOWN, VERY FEW CUSTOMERS ACTUALLY USE THAT WHOLE 25 UNITS OF WATER.
YOU MIGHT HAVE SMALLER FAMILY SIZES, MAYBE PEOPLE WITHOUT YARDS THAT DON'T WANT 25 UNITS, THEY DON'T USE THEIR 25 UNITS AND THEY WOULD WELCOME A REDUCTION IN THEIR BILL, REFLECTING THEIR LOWER LEVELS OF USE IS REALLY GIVING CUSTOMERS MORE CONTROL OVER.
[00:50:06]
THEY GET TO DECIDE HOW MUCH THEY WANT TO USE.THEY CAN MAKE ADJUSTMENTS IF THEY'RE WILLING TO PAY MORE OR THEY CAN TAKE ADVANTAGE OF A LOWER BILL IF THEY ARE A WATER CONSCIOUS CONSERVING CUSTOMER.
THIS IS A NEW CHART, AGAIN GOES TO WHY THERE ARE MORE SIGNIFICANT GREAT IMPACTS FOR SOME CUSTOMERS THAN OTHERS.
I WANTED TO TALK ABOUT CHANGES FROM A PRIOR STUDY AND CHANGES FROM A CURRENT RATE STRUCTURE.
THE PRIOR STUDY INTENDED TO RECOVER VOLUME RATES FROM 25 PERCENT USAGE THE REST OF THIS IN THE BASE ALLOTMENT.
IT HAS A COLLECTION OF ABOUT 60 PERCENT OF REVENUES FROM A MINIMUM FEES AND 40 PERCENT OF REVENUES FROM VOLUME RATES.
WE HAVE VERY HIGH FIXED REVENUE SOURCES.
IT IS GREAT, BECAUSE OF IT'S ABILITY, THERE'S LESS RISK OF THE CONSERVATION AND REVENUES DECREASING.
THE WAY THAT RATES WERE DESIGNED WAS THE MINIMUM RESIDENTIAL FEE IS 2,860 FOR 25 UNITS OF WATER, AND THAT COMES OUT TO ABOUT $1.14 PER UNIT OF WATER.
THAT AMOUNT WAS CALCULATED TO ONLY RECOVER OPERATIONS COST, AND THEN MUCH HIGHER FEE, THE AVERAGE, EXCESS WHICH IS TO BE $4.03 WAS INTENDED TO RECOVER BALANCE.
THE REASON I BRING THIS UP IS THERE IS A HUGE PRICE DIFFERENCE IN THE UNDERLYING COST STRUCTURE, WHICH BRINGS WHAT'S INCLUDED IN A MINIMUM FEE VERSUS EXCESS USAGE VERSUS ONE DOLLAR.
I WOULDN'T EVEN QUESTION, IS THE FOUR DOLLARS THERE, SHOULD ALL TYPES OF CUSTOMERS PAY SOMETHING TOWARDS CAPITAL COST? EVERYBODY USES THE WATER BASE USING THE PIPES AND THE PUMPS.
SHOULD EVERYBODY BE PAYING A PORTION OF THE CAPITAL COST, NOT JUST THE ACCESS AND USAGE COSTS.
HOWEVER, WE SHOULD ALSO POINT OUT THAT YOUR CITY HAS BEEN VERY LUCKY OR NOT, BUT FORTUNATE IN GETTING THE STATE REMOVING HOME GRANTS SO YOU DON'T HAVE THIS HUGE COST BURDEN LONGER MOVING CAPITAL PROJECTS.
I JUST QUESTION IS THIS RATE STRUCTURE FROM THE PRIOR STUDY REALLY APPLICABLE ANYMORE? OR HAS YOUR WATER USAGE CHANGED? EVEN YOUR COST STRUCTURE WITH A CAPITAL PROJECTS BECAUSE OPERATIONS, HAS THAT CHANGED OVER TIME SO THAT MAYBE DOES IT MEET THE NEEDS OF YOUR COMMUNITY, AND WHY IS THAT ANYMORE? WHAT WE'RE PROPOSING IS TO, WELL, THE RATE STRUCTURE, LOOK AT YOUR ACTUAL BUDGETED COST AND IT JUST SO HAPPENS IS INSTEAD OF 60 PERCENT MINIMUM FEES REFLECTING 60 PERCENT ON VOLUME RATES AND 40 PERCENT FOR MINIMUM.
IT'S A FLIPPING HALF REVENUES WE DID.
THERE IS ALWAYS FINANCIAL RISKS, IN EVERY YOU MAKE ADJUSTMENTS TO THE RATE STRUCTURE THAT EVERYBODY, EVEN IF HE SERVED TO A GREATER EXTENT THAN WHAT WE PROJECTED, AND SO YOU MAY LOSE SOME VOLUME REVENUES.
WE'VE DONE OUR BEST TO LOOK AT HOW FOLKS USE WATER AND PROMOTE REVENUES STABILITY AS MUCH AS POSSIBLE.
BUT THERE'S ALWAYS A POTENTIAL LEFTOVER DEGREE FOR WATER USAGE TO A BRIGHTER THAN WHAT WE WOULD'VE EXPECTED, SO THERE'S ALWAYS THAT POTENTIAL CHANGE IN REVENUE STABILITY.
WE'RE PROPOSING THE FEES AND THE RESIDENTIAL SERVICE FEE OVER FIVE YEARS, AND EVENTUALLY IF IT WILL BE CALCULATED BASED ON $2.35 MINIMUM FEE TO RECOVER BASE COST ASSOCIATED WITH EFFICIENT USE.
INSTEAD OF THE CURRENT DEAL, $1.14, WE'RE INCREASING THAT TO $2.35.
THE MINIMUM FEE IN YEAR 5, AND I'LL SHOW HOW THE BASE WOULD EVENTUALLY GET THERE OVER FIVE YEARS.
WE'RE TAKING THAT $2.35 TIMES AS A NEW PROPOSAL OF SEVEN YEARS OF WATER, THAT'S $50.45.
I'M PROPOSING THAT ALL CUSTOMERS PAY A CUSTOMER SERVICE FEE OF $3 AND THAT'S CONSISTENT WITH AMERICAN WATER WORKS ASSOCIATION, WAS METHODOLOGY.
[00:55:01]
THEY WROTE UP A MANUAL I PREFER GLASS ON HOW IT SHOULD BE DESIGNED AS WE ALWAYS RECOMMEND THE SERVICE FEE AND YEAR 5, WE'RE PROPOSING A MINIMUM RESIDENTIAL FEE OF $19.25 AND THEN ALL USAGE OVER SEVEN UNITS WITHIN PAY $2.70 FOR THAT OVERAGE OR USAGE.HERE ARE THE RATE IMPACT, I WANT TO SPEND A LITTLE TIME TO GO THROUGH THIS.
THE PROPOSED RATE ADJUSTMENT FOR JANUARY 1ST AND WHAT AM PROPOSING AS A MINIMUM E, STAYS THE SAME.
THE BASE FEE IS 28.60, NOW, 28.60 JANUARY 1ST.
THE IDEA IS THAT THE AMOUNT OF WATER NOW INCLUDED IN THE BASE FEES FACING DOWN.
IT'S REALLY JUST TO GIVE PEOPLE WHO ARE AT THE HIGHER AREAS.
THEY STARTED TO SEE THAT, OH, I USED TO GET 22, 23, 24, 25 AND THAT HAPPENED IN 25 MINUTES.
THEN EVENTUALLY THERE'S A PHASE DOWN IN THE AMOUNT OF WATER IN THE BASE SO 25 MINUTES IN 21,17, 13, 10, AND 7 AND THE MINIMUM FEE IS ALSO DECREASING YOUR FIRST YEAR TO REFLECT LOWER WATER INCLUDED IN THAT.
THEN I KNOW THERE'S A LOT OF NUMBERS ON THE CHART AND EVERY RATES ALSO INCLUDED IN YOUR BUDGET.
THE SAME IDEA INCLUDED FOR ALL THE OTHER TYPES OF CUSTOMERS AS WELL.
WE WOULD HAVE VENTRAL FACE DOWN OF AIRBASE, ALLOTMENT OF WATER EVENTUALLY GET TO THEIR EFFICIENT DOOR USE.
SOME CUSTOMERS HAVE MORE OF DECREASE THEM IN PHASE A LOT ON OTHERS, BUT ALL CUSTOMERS THEN WILL ALSO HAVE THEIR BASE BE REFLECTING IN THE WATER THEY HAVE.
THEN THE VOLUME RATE WE'RE GIVING PEOPLE A GOOD DISCOUNT THAT FIRST YEAR, GOING $4.03-$2.50 AND THEN EVENTUALLY PHASING INTO $2.07.
STRESS AGAIN THAT ESPECIALLY THE FIRST FEW YEARS, THERE IS A DRAW ON YOUR EXISTING RESERVES TO HELP MITIGATE THESE BREAK AND THUS POTENTIALLY THE VOLUME RATE, IF IT WAS FULL COST WOULD BE HIGHER BUT WE WANT TO GIVE THOSE THE OPPORTUNITY TO GET SOME ADJUSTS ON THE NEW RATES.
IT'S THE SAME STORY FOR NON-RESIDENTIAL CUSTOMERS.
THE FIRST YEAR, THE BASE BE IS THE SAME OF THE AMOUNT OF WATER THEY'RE GETTING IN THAT BASE BE IS LESS VOLUME RATE IS THE SAME RESIDENTIAL VERSUS COMMERCIAL CUSTOMERS, IT'S THE SAME VOLUME RATE AND EVENTUALLY EIGHT PERCENT OPEN THE PRIOR [INAUDIBLE].
NOW I'M GOING TO TALK ABOUT THE RATING ACTS EACH YEAR IN THE FIVE YEARS.
THESE ARE NEW CHARTS AND I WANT TO BETTER EXPLAIN HOW THE RATE IMPACTS THAT OCCUR BASED ON DIFFERENT LEVELS OF WATER USE.
SO THIS IS THE NEW CHARTS AND INFORMATION.
AS WE EXPLAINED THE FIRST-RATE IMPACT WOULD OCCUR FOR JANUARY 1ST.
A TYPICAL SINGLE-FAMILY RESIDENTIAL CUSTOMER WOULD NOW ONLY GET 21 UNITS; DOWN FROM 25-21 UNITS IN THEIR FIXED CHARGE.
THAT'S NO BILL CHANGER [LAUGHTER].
SO YOU HAVE TO REMEMBER THAT MOST CUSTOMERS DON'T GET ABOVE 25 UNITS OF WATER AND DURING JANUARY TO JUNE, THEY ALSO DON'T GET AN APPOINTMENT UNITS OF WATER.
PRETTY HIGH-LEVEL USE, THAT'S REALLY ONLY LATE SUMMER, AND JULY, AUGUST, SEPTEMBER, LEVEL USE.
THE SO-CALLED CUSTOMER WOULD PAY EXACTLY THE SAME.
SO THE STATE RATE IMPACT REALLY IS ONLY FOR THOSE HIGH WATER USERS OF 21 MINUTES OR SO.
I'VE SHOWN THE DIFFERENT MONTHS THAT THIS RATING WE CAN EFFECT, AND THE BILL IS THE SAME.
ONLY ABOUT 10 PERCENT OF CUSTOMERS USE OVER THE 21 UNITS, AND SO THEY WOULDN'T GET A RATE OF CHANGE.
AND THEN CUSTOMERS THAT USE ABOVE 27 UNITS WOULD PAY LESS.
AND YOU MIGHT SAY, WAIT, HOW? THEN YOU HAVE TO REMEMBER THAT WE'RE CHANGING THE VOLUME RATE ON THE $4.03 AND TO $1.50.
SO THOSE HIGHER LEVEL OF WATER USERS ARE DROPPING THEIR HOME RATES IN $4 AT $2.
[01:00:08]
THAT'S WHY HIGHER LEVELS OF USE WOULD BE A DECREASE FOR THOSE FOLKS.BUT AGAIN, THAT'S ONLY IMPACTING ABOUT FOUR PERCENT OF CUSTOMERS.
THIS RATE IMPACT IS POTENTIALLY GOING INTO EFFECT FROM JULY 1ST 2023.
BUT THIS GROUND, THE BASE ALLOTMENT, HAS BEEN REDUCED FROM 21-17 AND THE OVERAGE ONLY IS $1.81.
THE AVERAGE CUSTOMER NOW IS PAYING MORE IN SUMMER BUT LESS IN OTHERS.
THOSE ARE BILLS A CUSTOMER'S GET A DECREASE AND THEN 24 PERCENT INCREASE COMPARED TO THE CURRENT.
SO LET'S TAKE A MINUTE TO LOOK AT THIS CHART.
FOR EACH MONTH OF THE YEAR AND THE AVERAGE USE FOR THAT MONTH WE'RE COMPARING IT TO THE YEAR 1 PROPOSED BILL.
IN YEAR 1, YOU USE ABOVE 21 UNITS THEN YOU HAVE A RAISE IN YOUR BILLS.
YOU CAN SEE SEPTEMBER THERE WAS A SLIGHT INCREASE BUT OTHERWISE THAT CUSTOMER IS STILL PAYING THE 28.60.
THIS CUSTOMER IS ONLY PAYING MORE IN THE GRAY SHADED CELLS.
JULY, AUGUST, SEPTEMBER, AND OCTOBER, THAT PERSON IS PAYING MORE BUT DURING THE OTHER MONTHS OF THE YEAR THEY'RE PAYING LESS.
THAT'S THE PHASE AND CONCEPT THAT WE TALKED ABOUT EARLIER.
HOW WE'RE DOING THE FIVE-YEAR GRADUAL PHASING.
SO AT THE END OF THE YEAR, THIS CUSTOMER ONLY PAID LESS THAN $2 MORE THAN THE CURRENT RATE STRUCTURE.
I ALSO WANTED TO POINT OUT THE BOLDED TEXTS THERE ARE COMPARED TO THE CURRENT RATE STRUCTURE.
SO THIS PERSON IS BETTER OFF NOT JUST COMPARED TO THE YEAR 1 RATE BUT TO THE CURRENT RATE.
INSTEAD OF PAYING $28.60 UNDER THE CURRENT RATES, THAT PERSON IS ONLY PAYING $26.77 UNDER THOSE DIFFERENT TIMES OF THE YEAR.
>> AND ALISON, IF I COULD INTERRUPT REAL QUICK, JUST TO REINFORCE ONE THOUGHT HERE.
THESE NUMBERS ARE ALL BASED ON NO CHANGE IN THE CUSTOMER BEHAVIOR.
THESE NUMBERS ARE ASSUMING NO ONE WENT OUT AND ADJUSTED THEIR SPRINKLERS IN RECOGNITION THAT THEIR USAGE RATES ARE GOING UP.
AGAIN, THE CUSTOMER HAS CONTROL OVER THIS.
IT PROBABLY COULD GET SIGNIFICANT SAVINGS BY MAKING THOSE CHANGES, AND ALL THE REST OF THESE SLIDES THAT ALISON IS GOING TO SHOW YOU ARE BASED ON NO CHANGE IN USAGE PATTERNS WHATSOEVER.
STILL COMPARING BACK TO THOSE AVERAGE USES.
>> TO BE CLEAR IN MY MIND, THIS IS IN THE FIVE-YEARS OF SUBSIDY.
>> THE ENTIRE FIVE YEARS IT'S A SMOOTHING SUBSIDY.
THE BASE VOLUME GOES DOWN, THE PRICE PER GOES UP BUT START HAVING CONTROL OVER THAT AMOUNT THAT'S OVER THE BASE AMOUNT.
WE CAN'T DO ANYTHING ABOUT THAT.
THE CUSTOMERS CAN'T DO ANYTHING ABOUT THAT.
WHAT THEY CAN DO IS ADJUST THE AMOUNT THAT THEY USE ABOVE THAT MANDATED BASE AMOUNT. THAT'S WHAT WE'RE SEEING HERE.
>> I KNOW A LOT OF NUMBERS IS CONFUSING, BUT I WANTED TO POINT OUT THIS IS ASSUMING NO CHANGE IN BEHAVIOR ON THAT TESTAMENT.
>> THAT'S WHAT I WANTED TO TIE UP YOUR STATEMENT TO THE SUBSIDY BECAUSE THESE NUMBERS INCLUDE A SUBSIDY, THE FIVE YEARS.
SO ONCE A SUBSIDY ENDS, THIS NUMBERS CHANGE.
>> NOT THESE NUMBERS, THOSE FIVE-YEARS WILL BE HISTORY.
THERE'LL BE ANOTHER RATE STUDY, AND NEW NUMBERS BUT HOPEFULLY, WE'RE ON A STRUCTURE AT THAT POINT WHERE IT'S JUST INFLATIONARY.
WE DON'T KNOW WHAT'S GOING TO BE IN PLACE IN FIVE YEARS.
IT'LL BE A NEW RATE STUDY, NEW RATES.
I DIDN'T WANT TO LOSE THE MOMENTUM THAT ALISON HAS BEEN ON.
[OVERLAPPING] I THINK IT'S IMPORTANT YOU KEEP THAT IN MIND.
>> MAY I ASK A QUESTION MR. MAYOR?
>> I'M CONFUSED BECAUSE ON THIS CHART IT SAYS THAT THE BASE RATE IS LIKE EIGHT OR SOMETHING, BUT THIS IS SAYING 17. WHAT IS THE BASE RATE? BECAUSE THIS IS SHOWING THE PEOPLE ARE OVERLAP AT ABOUT EIGHT.
SO THEY OVERLAP MINUTE IS 17 OR AT 8 CUBIC FEET?
>> IN YEAR 5, SEVEN IS THE BASE.
IN YEAR 4, IT'S A LITTLE HIGHER [OVERLAPPING] IT STEPS DOWN EACH YEAR.
>> BASICALLY WHAT YOU'RE SAYING IS ANYBODY WHO HAS
[01:05:01]
MORE THAN ONE PERSON IN THE HOUSEHOLD IS GOING TO BE OVER THE BASE ALLOTMENT IN OUR CITY?>> NO, IT'S BASED ON THE 3.4 PEOPLE FOR A HOUSEHOLD.
>> LET'S BE REALISTIC. I SUPERVISED FOR THE CENSUS, THAT IS NOT AN ACCURATE NUMBER.
I'VE HAD CONVERSATIONS WITH OUR CONGRESSMEN.
I THINK EVERYBODY UP HERE ON THIS COUNCIL KNOWS THAT THAT IS NOT WHAT HAPPENS IN WASCO.
I DON'T KNOW THAT THERE'S A SOLUTION TO IT, BUT THAT'S JUST NOT THE REALITY OF OUR COMMUNITY MAKEUP.
I HAVE FOUR-AND-A-HALF PEOPLE WHO LIVE IN MY HOUSE AND TWO OF MY KIDS ARE GROWN AND OUT OF THE HOUSE.
>> I THINK THAT'S THE STANDARD.
>> AND I'M GLAD THAT YOU INTERRUPTED.
THERE IS A LOT OF DATA HERE THAT I'M TRYING TO DIGEST IT.
I'M FINDING IT DIFFICULT BECAUSE I KNOW THERE'S A SUBSIDY FOR FIVE YEARS.
WHAT YOU'RE SAYING TO ME IS, "DON'T WORRY ABOUT THE NEXT FIVE YEARS WHEN THE SUBSIDY ENDS BECAUSE WE WILL BE DOING ANOTHER STUDY AT THE TIME?"
>> WE'LL BE DOING THIS IN YEAR 4 BEFORE WE RUN OUT OF ROAD ON THIS PLAN.
>> BUT REALISTICALLY, BARRING SIGNIFICANT LIFESTYLE CHANGES TO 99 PERCENT OF OUR RESIDENTS.
THIS IS NOT AN ACCURATE FIGURE OF WHAT THEIR BILLS ARE GOING TO BE IN FIVE YEARS.
>> YES, BECAUSE IT ASSUMES THE SAME WATER USAGE.
AS WE GO ON INTO YEAR 3,4 AND 5, YOU'LL SEE THAT.
>>THIS ONE RIGHT HERE, IT'S 17 CUBIC FEET?
>> THERE'S MORE SLIDES THAT ARE GOING TO SHOW THIS?
>> SO SHE'S GOING TO STEP THROUGH EACH YEAR, AND YOU'LL SEE THE PENALTY OF NOT CHANGING THAT BEHAVIOR IN THE LATER YEARS.
>> JUST TO CLARIFY, IS THIS WHAT I HAVE IN MY HAND, THE SAME AS WHAT KHALIF IS PRESENTING?
>> I'D LIKE TO FOLLOW ALONG BUT I NEED TO FIND MY PLACE.
>> PAGE 17. ALISON, I'M SORRY FOR THE INTERRUPTION BUT WE HAD QUESTIONS AND I'M GLAD THAT MR. ALBERT INTERRUPTED SO THAT HE COULD CLARIFY THAT FOR US.
>> CAN I ASK A QUESTION BEFORE WE GO ON?
>> ON PAGE 16 GOING BACK ONE PAGE, IT TALKS ABOUT 10 PERCENT OF THE CUSTOMERS USE OVER 21 IN JANUARY TO JUNE PERIOD.
IT SAYS CUSTOMERS USING 22-27 PAY MORE, AND THOSE THAT ARE USING MORE PAY LESS.
>> IT IS COMPLICATED. BUT REMEMBER THERE WAS A REDUCTION FROM $4 PER UNIT FOR USAGE ABOVE THE BASE UNDER THE OLD PLAN.
NOW THAT DOLLAR AMOUNT IS DOWN TO 270 SOMETHING PER UNIT.
SO THE PENALTY FOR GOING ABOVE ACTUALLY WILL RESULT IN A REDUCTION.
IT'S A TEMPORARY ANOMALY BECAUSE OF THE CHANGE IN THE AMOUNT THAT'S IN THE BASE AND THE AMOUNTS THAT'S IN THE OVER USAGE AND THE RATE FOR THE OVER USAGE.
>> IT MAKES SENSE TO ME WHAT HE'S SAYING BECAUSE THE RATE IS GOING TO GO DOWN TO, WHAT'S THE AMOUNT?
>> EVEN WITH YOUR OVER USAGE, IT'LL TAKE LONGER TO CATCH UP TO THAT BREAK.
>> BUT THE WAY IT'S WORDED, IT SOUNDS LIKE SOMEBODY THAT'S USING MORE IS GOING TO BE BENEFITING THEM.
>> YES, BECAUSE BEFORE THEY PAID OVER $4.
>> THE WORDS THAT ARE MISSING, THEY'RE GOING TO PAY LESS THAN THEY WOULD FOR THAT SAME USE UNDER THE OLD PLAN.
>> YES. THAT'S THE MISSING CONCEPT THERE.
THEY'RE NOT GOING TO PAY LESS THAN THE ONES THAT USE 22-27.
THEY'RE GOING TO PAY LESS THAN WHAT THEY WOULD HAVE UNDER THE OLD STRUCTURE.
>> OVER THE YEAR'S 2 ADJUSTMENTS.
SO THIS IS GOING INTO EFFECT JULY 1ST, 2024 AND THE BASE ALLOTMENT NOW HAS BEEN REDUCED FROM 25 UNITS, THEN IT WENT TO 21, THEN IT WENT TO 17 AND NOW IT'S AT 13 ABOUT HALF.
THESE ALLOTMENTS HAVE BEEN REDUCED BY ABOUT HALF THE AMOUNT OF WATER.
AT THIS RATE CHANGE THE VOLUME RATE FOR OVERAGE, ANY USAGE ABOVE 13 UNITS, IT WILL PAY A RATE OF $2.12 PER 100 CUBIC FOOT OF USAGE.
THE AVERAGE CUSTOMER PAYS NINE PERCENT MORE THAN THE PRIOR YEAR; THE YEAR 2, AND ABOUT 58 PERCENT OF BILLS WILL RECEIVE A DECREASE, OF 42 PERCENT INCREASE COMPARED TO THE CURRENT.
[01:10:05]
HERE ARE THE BILL IMPACTS FOR EACH MONTH OF THE YEAR.UNDER THIS SCENARIO, THIS CUSTOMER, IT'S REALLY THE AVERAGE CUSTOMER WITH AVERAGE WATER USE, IS PAYING LESS IN THE MONTHS OF JUNE THROUGH MAY, SORRY JANUARY THROUGH MAY, AND THEN PAYS MORE IN JUNE THROUGH DECEMBER.
WATER USE IS ABOUT 13 UNITS, THAT CUSTOMER IS PAYING MORE.
AND THEN OVERALL THAT CUSTOMER IS PAYING ABOUT $31 MORE OVER THE COURSE OF THE YEAR, WHICH IS ABOUT NINE PERCENT MORE THAN COMPARED TO THE PRIOR PERIOD, THE YEAR 2 PROPOSED RATE CHANGE.
THIS ONE, WE GO INTO THE NEXT JULY 1ST OF 2025.
NOW THE BASE ALLOTMENT HAS BEEN REDUCED FROM 13 UNITS BACK TO 10 UNITS AND THE PAYMENT HAS INCREASED TO $2.43 PER 100 CUBIC FEET.
NOW THE AVERAGE CUSTOMER IS PAYING 12 PERCENT MORE THAN THE PRIOR YEAR AND 250, HALF OF THE BILLS RECEIVED A DECREASE AND HALF OF THE BILLS RECEIVED AN INCREASE.
IT'S REALLY THE WINTER AND SPRING PERIOD THAT WOULD BE RECEIVING A BILL DECREASE.
JANUARY, FEBRUARY, MARCH, AND APRIL WOULD RECEIVE A DECREASE.
HOWEVER, THE MAY BILL IS MORE THAN THE YEAR 3 BILL, BUT THAT MAY BILL OF $27.97 IS STILL LESS THAN THE CURRENT BILL OF $20.60.
THEN THAT CUSTOMER PAYS MORE OVER THE REST OF THE MONTHS [NOISE] JUNE TO DECEMBER AND IS PAYING ABOUT $45 MORE THAN THE PRIOR YEAR, WHICH IS ABOUT 12 PERCENT INCREASE.
THIS IS THE FIFTH YEAR, YEAR 5 OF THE RATE ADJUSTMENT, AND AT THIS YEAR, THE RATES ARE NOW ALIGNED WITH THE COST OF SERVICE.
THE RATE MITIGATION PLAN IS NOW UP AND THE RATES ARE FULLY COMPLIANT WITH OPPOSITION TO EACH COST OF SERVICE FEES FOR ALL CUSTOMERS.
THIS RATE IS PROPOSED TO GO INTO EFFECT JULY 1ST OF 2026, A BASE ALLOTMENT OF WATER IS NOW SEVEN UNITS WHICH I KNOW IT DEPENDS ON FAMILY SIZE.
BUT BASED ON ABOUT 3.4 PEOPLE PER HOME IS EFFICIENT INDOOR WATER USE AND THE VOLUME RATE IS $2.72.
WE DIDN'T TALK A LOT ABOUT COMPARING THE RATE, CURRENT TO THE PROPOSED FOR COST OF SERVICE RATES THAT WE'RE CHOOSING IN YEAR 5.
REMEMBER THAT IT IS GOING DOWN FROM THE $4.3 FOR OVER USAGE TO $2.72.
BUT I DO BELIEVE THAT THE $2.72 BETTER REFLECTS YOUR COST STRUCTURE CURRENTLY, THE EXPENSES THAT THE WATER FINANCE TO RECOVER.
AT THIS STAGE, THE AVERAGE CUSTOMER IS PAYING MORE DURING ALL 12 MONTHS, INCLUDING THE WINTER WATER USES PERIOD.
YOU DO STILL HAVE A SMALL NUMBER OF BILLS THAT WILL RECEIVE A DECREASE AND THAT WILL BE BETTER OFF.
THE MAJORITY OF BILLS ARE PAYING MORE RELATIVE TO THE CURRENT AND I'LL SHOW YOU HOW THAT WORKS.
UNDER THIS SCENARIO, THE PROPOSED YEAR 5 BILLS COMPARED TO YEAR 4 ARE ALL INCREASES.
HOWEVER, I WILL DRAW YOUR ATTENTION TO THE BOLDED TERM.
JANUARY, FEBRUARY, MARCH, AND APRIL, ALL OF THOSE MONTHS ARE BELOW YOUR CURRENT FEE OF $20.6.
THAT CUSTOMER, AT LEAST DURING THOSE FEW MONTHS, STILL BETTER OFF THAN THE PRESENT.
THAT ILLUSTRATES THAT THE SMALLER CUSTOMERS, SMALLER FAMILY SIZES, OR MORE EFFICIENT USERS ARE BETTER OFF UNDER THIS PROPOSED SCENARIO.
HOWEVER, A MORE TYPICAL FAMILY SIZE OR HIGHER WATER USERS WOULD HAVE A DIFFERENT FEELING AT THIS.
BY YEAR 5, COMPARED TO YEAR 4, THIS PERSON IS PAYING ABOUT $66 MORE WHICH IS ABOUT
[01:15:03]
15.6 PERCENT RATE INCREASE OVER THE WHOLE YEAR.THIS WAS THE CHART I SHOWED LAST TIME, BUT IT'S UPDATED [NOISE] BILLS OVER THE FIRST YEAR.
REMEMBER, THE FIRST YEAR WAS REALLY ONLY SIX MONTHS ACTIVE, AND THEN YEAR 2, 3, 4, AND 5 HOLD 12 MONTHS OF THE RATE BEING EFFECTIVE.
AS MENTIONED, THE YEAR 1 RATE FOR MOST CUSTOMERS WILL BE THE EXACT SAME BILL.
YOU CAN SEE THE CUSTOMER PAYS THE SAME, ABOUT 0.9 IS THE TYPICAL BILL UNDER THE CURRENT REPLAN AND THEN BLUE BOX ARE THE PROPOSED RATES.
THE FIRST WILL WORK ON YEAR 1 WOULD BE THE SAME, AND THEN YEAR 2 IS THE MORE THE RATE MITIGATION PLAN AND AS I ILLUSTRATED, IS VERY MINOR, LESS THAN TWO DOLLARS PER YEAR CHANGE SO THOSE WALKING THE LINE ARE ABOUT THE SAME.
THEN YEAR 3, 4, AND 5, THEY SPREAD WHERE THE PROPOSED RATE PLAN STARTS TO EXCEED THE CURRENT RATE OF THE $20.60 PER MONTH TYPICAL BILL.
I WILL POINT OUT THAT THIS IS LESS THAN, IT'S STILL A HIGH PERCENT INCREASE, A DOLLAR INCREASE, BUT IT'S STILL LESS THAN THE PRIOR PRESENTATION FROM JUNE.
THAT PRESENTATION I HAVE $530 TYPICAL BILL BY YEAR 5.
WE DID LOOK AT DIFFERENT COST STRUCTURES TO TRY AND MITIGATE RATE INCREASES.
FOR THIS AVERAGE CUSTOMER, IT'S A BILL INCREASE OVER THE FIVE-YEAR PERIOD OF ABOUT 42.5 PERCENT RATE.
>> ALICE, I MAY INTERRUPT YOU.
I DID WORK YOUR CHARTS FROM THE LAST PRESENTATION AND IT WAS 533.98 AND THE INCREASE WAS 55.59 PERCENT.
THE TOTAL INCREASE FOR THE YEAR OF $307.29 FROM THE CUSTOMERS.
>> THANK YOU [INAUDIBLE] THANK YOU FOR THAT CLARIFICATION [OVERLAPPING].
>> I JUST WANTED TO CLARIFY THAT. PLEASE PROCEED.
>> THE PROPOSED INCREASE HERE TO A TYPICAL BILL OF $459.08 IS ABOUT A 42 AND A HALF PERCENT INCREASE.
THIS IS WHERE YOU'RE SAYING, "HEY, ALISON, IN MY CHART NUMBER 3 HERE, YOU SHOWED US THAT THE RATE PLAN HAD A 28 PERCENT INCREASE FOR RESIDENTIAL CUSTOMERS.
WHY ARE YOU NOW TELLING US THERE'S A 42 PERCENT RATE INCREASE FOR THIS TYPICAL CUSTOMER?" I WANT TO TALK ABOUT WHY THERE IS THAT DIFFERENCE IN THE MATH.
THIS GOES BACK TO THE DIFFERENT LEVELS OF THE USE AND COMPARING TYPICAL BILLS TO THE CURRENT RATES.
IN YEAR 5, A CUSTOMER THAT'S USING UP TO SEVEN UNITS OF WATER, IT'S A BILL DECREASE AND SO THOSE CUSTOMERS ARE REDUCING THE REVENUE.
YOU'RE ACTUALLY LOSING. YOU'LL BE LOSING MONEY ON THOSE TYPICAL CUSTOMERS UNDER YEAR 5 RATES.
>> CAN WE TAKE A TWO-MINUTE RECESS TO USE THE RESTROOM?
>> YES, SURE. WHAT IS THAT? UNFROZEN?
>> WE'LL BE BACK IN SESSION AT 7:25.
>> I THINK WE WERE BACK HERE [LAUGHTER] BEFORE MY SCREEN FROZE.
I WANTED TO TALK THROUGH WHY THE TYPICAL BILL IS SHOWING A 42 PERCENT INCREASE WHILE I SAID PREVIOUSLY THAT THE RESIDENTIAL CUSTOMER CLASS IS ONLY EXPECTING ABOUT A 28 PERCENT INCREASE FROM THE CLASSES OF RESIDENTS.
WHY ARE SOME RESIDENTIAL CUSTOMERS GETTING LARGER BILL IMPACT THAN AVERAGE 28 PERCENT?
[01:20:07]
THIS IS THE RATE IMPACTS FOR YEAR 5.WE ARE MEETING THE COST OF SERVICE.
THERE ARE NO MORE FREE MITIGATION FUNDS TO BE SPENT TO FULLY LOADED COST OF SERVICE.
AT YEAR 5, BILLS THAT ARE SEVEN UNITS OR LESS WOULD GET A DECREASE, SO ALTHOUGH WE TALKED ABOUT 28 PERCENT CHANGE FOR THE RESIDENTIAL CUSTOMER CLASS AS A WHOLE, THAT DOES INCLUDE SOME CUSTOMERS, IT'S 23 PERCENT THAT ARE GETTING A DECREASE AT LOWER LEVELS OF USAGE.
THOSE CUSTOMERS ARE ACTUALLY COSTING THE CITY ABOUT $140,000 COMPARED TO THE CURRENT RATE STRUCTURE.
THEN THE MEDIUM LEVELS OF THESE CUSTOMERS USING EIGHT UNITS PER MONTH UP TO 55 UNITS PER MONTH ARE CONTRIBUTING TO AN INCREASE IN REVENUE COLLECTED FOR THE RESIDENTIAL CUSTOMER CLASS, ABOUT 700,000 SO THEY'RE MAKING THE CITY MONEY.
USE 56 AND ABOVE ARE ALSO GETTING A DECREASE AND THIS IS [LAUGHTER] WHY WE STARTED TO TALK ABOUT, HOW ARE SOME CUSTOMERS GETTING A DECREASE? THAT DOESN'T SEEM ANY RIGHT.
THE REASON IS BECAUSE AS WE STARTED TO DISCUSS, THE AVERAGE IS DECREASING FROM $4.3 DOWN TO $2.72.
THAT'S THE HIGHER LEVEL OF USE.
THEIR CUSTOMER USED TO PAY $4, AND NOW THEY'RE PAYING LESS THAN $3.
>> ALISON, CAN I SAY SOMETHING HERE? THAT DECREASE IS ONLY IN THE EXCESS ABOVE THE 55 CUBIC FEET, RIGHT? IT'S NOT OVERALL.
OR IS IT OVERALL? IT MAKES NO SENSE IF IT'S OVERALL.
>> IT'S ALL USAGE ABOVE THE SEVEN UNIT BASAL ALLOTMENT IS NOW PAYING $2.72 FOR 100 CUBIC FEET.
WHAT I'M TALKING ABOUT HERE IS THE TOTAL BILL IMPACT.
I HAVE AN ILLUSTRATION THAT I CAN WALK THROUGH.
>> I DON'T WANT TO MODEL THIS, BUT YOU MENTIONED THAT FROM EIGHT, WHAT IS THAT? CCF. HOW DO YOU READ THAT?
>> HUNDRED CUBIC FEET. [OVERLAPPING]
>> HUNDRED CUBIC FEET TO 55, THEY'RE SEEING AN INCREASE OF 76 PERCENT AND USE ABOVE THE 55, WHICH IS 56, 100 CUBIC FEET, WILL SEE A DECREASE ONLY ON THE OVERAGE NOT ON THE BASE OF THAT 8-55, 100 CUBIC FEET.
>> NO. THIS IS THE EFFECT OF REVENUE FOR THAT ONE PERCENT EXTREMELY HIGH WATER USERS COMPARED TO THE OLD RATE STRUCTURE, THE NET REVENUE TO THE CITY WILL ACTUALLY DECREASE BECAUSE OUR COST PER UNIT IS DROPPING.
THEY'RE STILL PAYING FOR IT, BUT THEY'RE PAYING 2.72 PER CUBIC FOOT, NOT $4 PER 100 CUBIC FOOT [OVERLAPPING].
>> THANK YOU. IT'S CLEAR TO ME NOW.
THANK YOU. PLEASE PROCEED ALISON. [OVERLAPPING]
>> THANK YOU. I HAVE AN ILLUSTRATION.
I'VE ADDED AN ILLUSTRATION TO SHOW YOU WHY THAT IS.
UNDER A NEW RATE STRUCTURE YEAR 5, A PERSON USING 25 UNITS WOULD BE PAYING $68.41, SO THAT WOULD BE THEIR TOTAL BILL.
THAT INCLUDES THEIR BASIC NEED PLUS ALL THE WATER THEY'RE USING, SO THEY GET THE FIRST SEVEN FOR FREE THEN UNITS 8-25 THEY HAVE TO PAY $2.72 OF COURSE.
BUT IF WE COMPARE THE CURRENT BILL [INAUDIBLE] TO THE PROPOSED BILL SO THAT'S A BIG DIFFERENCE OF $40 IS DIFFERENT.
CURRENT YEAR 5 A PERSON IS PAYING ABOUT $40 MORE, SO THEN WHAT HAPPENS AT THIS EXTREME HIGHER LEVELS OF USE? THE RATE IS THE $2.72.
THE DIFFERENCE IN PRICE IS $1.31.
HIGHER LEVELS WILL USED TO BE CHARGED $4, NOW THEY'RE BEING CHARGED $2.72, THE DIFFERENCE IS ABOUT $1.30.
AT SOME POINT, THE TWO BILLS CONVERGE UNDER THE CURRENT, YOU'RE PAYING $68.
[01:25:06]
AT THE PROPOSAL, YEAR 5 RATE YOU'RE PAYING ABOUT $68 COMPARED TO THE CURRENT $28.60 THERE'S A BIG PRICE DIFFERENCE, SO THE CURRENT BILL IS MUCH, MUCH LOWER.BUT AT SOME POINT, THAT CURRENT BILL IS PAYING $4 FOR EVERY UNIT OF WATER AND EVENTUALLY WILL CATCH UP TO THAT $68.41 AT THE NEW RATE STRUCTURE AND EVENTUALLY UNDER THE CURRENT RATES, A HIGHER AND HIGHER AND HIGHER LEVELS OF USAGE BECAUSE THEY'RE PAYING A $1.31 MORE EVERY SINGLE UNIT OF USAGE.
EVENTUALLY, AT HIGHER LEVELS OF USAGE, THE WHOLE BILL WOULD HAVE BEEN MORE AND THE NEW BILL WOULD'VE BEEN LESS.
NOW WE'LL GET TO OVER 56 UNITS AND ABOVE, A NEW RATE STRUCTURE IS A LOWER TOTAL BILL THAN THE CURRENT BILL.
IT'S BECAUSE THAT DIFFERENCE IN PRICE, IN THE DIFFERENCE OF PRICE IN THE VOLUME RATE AND IT'S DIFFERENCE IN THE AMOUNT OF UNITS WE'RE CHARGING IN THE BASE.
I KNOW IT'S VERY CONFUSING [OVERLAPPING] BUT THAT IS THE GIVEN ILLUSTRATION HERE.
>> ALISON, BEFORE YOU CONTINUE, MEMBER MARTINEZ WOULD LIKE TO ASK A QUESTION.
>> I APOLOGIZE. I DIDN'T HAVE AN OPPORTUNITY TO REVIEW THE DOCUMENTS FOR TODAY'S MEETING AND I CAME IN A LITTLE BIT LATE.
BUT THIS CHART RIGHT HERE, THIS IS OUR CURRENT AVERAGE USAGE, CORRECT?
>> OKAY. THE HIGHEST MONTH THAT WE HAVE IS 22.3CCF, RIGHT?
>> PER AVERAGE, THAT'S THE HIGHEST.
BUT ON THIS, WE'RE SAYING YEAR 5 AT 25CCF, SO THAT ESTIMATE IS HIGHER THAN EVEN OUR AVERAGE CUSTOMER USES, EVEN IN A PEAK MONTH, IT'S WHAT WE'RE BASING ON? OKAY. [OVERLAPPING] THAT'S ALL, YOU KNOW. THANK YOU.
>> JUST FOR SEPARATE ILLUSTRATION, NOT BASED ON ANY PARTICULAR MONTH OR ACTUAL SCENARIO.
>> RIGHT. WE'RE BASICALLY THESE NUMBERS ON WHAT MORE THAN WHAT THE AVERAGE CUSTOMER WOULD USE EVEN TODAY WITHOUT THE REDUCTION.
>> YEAH. THIS IS INTENDED TO BE AN EXAMPLE TO SHOW WHY ABOVE THAT IT'S VERY EXTREMELY HIGH LEVEL BILL ABOVE THE ONE PERCENT LEVEL USAGE.
WHY THAT BILL WILL POTENTIALLY BE LESS THAN A LOWER LEVEL USAGE.
IT COMPARES THE WASCO CURRENT BILL 28.60 AND REMEMBER THAT THAT IS THE PROPOSED RATE ALSO, FOR JANUARY 1ST, 2023 IT'S ALSO $20.50 CENTS FOR THE MINIMUM FEE.
IT'S BASED ON THE ANNUAL AVERAGE USAGE OF 15 UNITS, BUT 15 UNITS THAT CUSTOMER IS NOT HAVING ANY WATER USING THE OVERAGE RATES AND IT COMPARES WASCO'S BILL OF THE 28.60 TO THE TYPICAL BILL OF OTHER LOCAL AGENCIES OR A CUSTOMER THAT'S USING 15 UNITS OF WATER FOR MONTHLY PERIOD.
WASCO'S BILL IS ON THE EXTREME LOW-END AND THESE OTHER SERVICE AREAS ARE MORE THAN DOUBLE IN SOME CASES.
NOBODY LIKES A RATE INCREASE BUT I JUST WANTED TO ILLUSTRATE BECAUSE WE WANT THEM TO HAVE VERY LOW COST STRUCTURE COMPARED TO OTHER LOCAL WATER UTILITIES.
ONE OTHER THING I JUST WANTED TO POINT OUT THAT THEY UPDATED THE SURVEY IN JULY, THAT'S WHEN MANY PUBLIC AGENCIES THAT BEING ERASED CONSISTENT WITH THE FISCAL YEAR.
AS WE PROCEED WITH THE RATE PROCESS AND TO WARN THOSE PUBLICLY NAMES, I WILL CONTINUALLY UPDATE THIS CHART JUST TO INCORPORATE ANY OTHER AGENCIES THAT MAY HAVE HAD BILL INCREASES IN THE MEANTIME.
THAT CONCLUDES THE PREPARED SLIDES I HAVE FOR THE WATER UTILITY.
I WANT TO SEE IF WE WANT TO STOP THERE AND DIGEST AND ASK QUESTIONS ABOUT WATER OR IF YOU WANTED TO MOVE ON TO SEWER.
SEWER IS MUCH MORE SIMPLE THAN WATER.
>> THANK YOU, ALISON, ARE THERE ANY QUESTIONS FROM THE MEMBERS NOW, PRO TEM PALLARES.
>> I WAS TAKING NOTES, THAT LAST SLIDE 1,500 CUBIC FEET AVERAGE USE.
[01:30:05]
THAT'S GOING TO BE PER MONTH OR THAT'S GOING TO BE FOR THE YEARLY AVERAGE.>> BE PER MONTH. BUT IT WOULD ONLY BE APPLIED FIVE YEARS FROM NOW.
THE SURVEY IS CURRENT INFORMATION AND IT WILL GO JANUARY 1ST [INAUDIBLE].
>> RIGHT. BUT BY THE YEAR FIVE, WE'RE GOING TO BASICALLY HAVE TO REDUCE OUR WATER USAGE IN HALF FOR OUR HOUSEHOLD, CORRECT? [NOISE]
>> WELL, THAT OF WATER IN THE BASE.
>> THE AMOUNT IN THE BASE FEED, YOU'RE RIGHT, WOULD BE DROPPING UP AND THEN YOU WOULD PAY MORE OF YOUR BILL AS THE VOLUME OVERAGE RATE.
>> THE SAVINGS SAID, I WOULD HAVE IN THE WINTER MONTHS, JANUARY, FEBRUARY, MARCH WOULD QUICKLY BE OVERCOME BY A WARMER MONTH VERY QUICKLY.
MY WATER MANAGEMENT IS GOING TO BE [LAUGHTER] THE FOREFRONT ON MY MIND.
>> THAT IS TRUE BUT YOU WILL HAVE CONTROL OVER THAT.
THE RATES ARE SET SO THAT THE CLOSER YOU GET TO MAINTAINING THAT BASE RATE NOT DECIDED IN SACRAMENTO, NOT HERE IN WASCO.
THE MORE YOU HAVE CONTROL OF EVERYTHING ABOVE THAT.
IF YOU LIVE ON A THIRD ACRE AND THAT'S ALL TURF.
YOU'RE GOING TO BE PAYING MORE OF THAT USAGE FEE AND IT COSTS MORE TO LIVE ON THAT PROPERTY.
IF YOU LIVE IN A ONE-BEDROOM APARTMENT AND IT'S JUST YOU, YOU'LL PROBABLY NEVER EVEN HIT THE SEVEN, RIGHT? IT PUTS THE ACTUAL COST WHERE THE USAGE ACTUALLY OCCURS.
THE ILLUSTRATION THAT ALISON USED WITH THE 56, THAT'S DOUBLE THE BASE RATE.
THERE ARE ONE PERCENT OF OUR USERS THAT ARE USING DOUBLE THE BASE RATE BECAUSE OF THEY LIKE TO LET THE SHOWER RUN OR THEY HAVE A THREE ACRE AND IT'S ALL TURF.
I DON'T KNOW. BUT THEY'LL GET TO PAY FOR THAT PRIVILEGE IN THE FUTURE AND YOU'LL GET TO BENEFIT FROM SWAPPING OUT SOME OF YOUR FIXTURES FOR LOWER FLOW.
JUST IN YOUR SPRINKLERS TO BETTER SWEET SPOT INSTEAD OF OVERWATERING.
REPLACING TURF WITH SOMETHING THAT USES LESS WATER THAN TURF, SO THERE WILL BE OPPORTUNITIES.
BUT YOU ARE CORRECT, IT'S GOING TO REQUIRE SOME WORK ON EACH HOUSEHOLDS PART.
BUT THE BASE IS DESIGNED TO COVER THAT INDOOR EFFICIENT USE OF WATER PER PERSON BASED ON A BAD ASSUMPTION PERHAPS IN MANY HOUSEHOLDS BUT AGAIN, BASED ON THOSE ASSUMPTIONS.
THE VARIABLE FOR GALLONS PER PERSON WAS 51 GALLONS PER DAY OR SOMETHING LIKE THAT.
WHAT WAS THAT BASED ON? WHAT AGENCY GAVE US THAT NUMBER?
>> STATE OF CALIFORNIA SAYS THAT WE'RE SUPPOSED TO BE AT 52 AND A HALF GALLONS PER PERSON PER DAY AND GO DOWN TO 50.
THE 700 CUBIC FEET PER MONTH HAPPENS TO COINCIDE ALMOST WITH THAT APARTMENT.
>> HEY, THANK YOU, MR. MARTIN.
>> YOU'RE WELCOME, MAYOR PERTIM. MEMBER GARCIA?
I'LL DRINK LESS TAP WATER AND MORE BEER SO, [LAUGHTER] NO QUESTION SIR.
>> WELL, AS YOU KNOW, ALISON, LAST TIME YOU DID YOUR PRESENTATION.
I WAS NOT VERY HAPPY ABOUT WHAT I WAS HEARING.
YOU HAVE CERTAINLY CHANGED THIS TO A MORE POSITIVE FOR OUR RESIDENTS.
I THINK IT'S A LOT BETTER THAN IT WAS BEFORE.
[01:35:03]
I DID WORK THE CHARTS THAT YOU GAVE US PREVIOUSLY, I DON'T KNOW IF SHE CAN SEE THEM, AND IT'S JUST WAY TOO HIGH FOR THE MAJORITY OF OUR RESIDENTS.I CAN SEE HOW WE CAN ALL DO SOMETHING TO IMPROVE OUR WATER USAGE.
THIS IS OF COURSE RELATED TO WHAT WE'RE TALKING ABOUT.
US AS A CITY, WE'RE GOING TO HAVE TO FIND WAYS TO HELP OUR RESIDENTS SAVE WATER.
BE IT THROUGH SUBSIDIZING WATER-WISE LANDSCAPING.
WHATEVER WE NEED TO DO, WE'RE GOING TO HAVE TO DO BECAUSE BELIEVE ME, A LOT OF PEOPLE ARE NOT GOING TO BE ABLE TO STAY WITHIN THAT 700, 100 CUBIC FEET, AND WHEN THEY SEE THEIR FIRST BILL THAT EXCEEDS THAT, THEY'RE NOT GOING TO BE HAPPY.
I BELIEVE THAT. THAT'S SOMETHING WE'LL NEED TO TALK ABOUT AND I WOULD LIKE TO SEE STAFF BRING FORWARD SOME PROPOSALS REGARDING HOW WE CAN HELP OUR RESIDENTS BE WATER-WISE.
THERE'S A LOT OF THINGS OUT THERE.
YOU MENTIONED ADJUSTING YOUR SPRINKLER SYSTEM USING NO VOLUME [OVERLAPPING] OVERHEADS AND AERATORS FOR YOUR FAUCETS, MAYBE DRIP SYSTEMS FOR THE FLOWER BEDS AND SUCH.
I THINK THAT WOULD BE A STEP IN THE RIGHT DIRECTION BECAUSE IT SEEMS TO ME THAT WE'RE NOT GETTING AWAY FROM DOING THIS.
IT'S JUST SOMETHING THAT THE STATE EXPECTS US TO GET TO, AND ONE WOULD SAY, WELL, THEY'RE NOT VERY WISE BUT WHEN YOU LOOK AT THE DROUGHTS THAT WE'VE BEEN HAVING, AND THE CURRENT DROUGHT, SO THERE IS SOME MERIT IN THAT.
ANYWAY, I DON'T HAVE FURTHER QUESTIONS.
I THINK ALISON, YOU'VE DONE A GREAT JOB EXPLAINING THIS, AND I THINK WE CAN PROCEED WITH THE SEWER UNLESS ANYBODY HAS ANY FURTHER QUESTIONS.
>> I'D LIKE TO MAKE ONE QUICK COMMENT.
>> JUST POINTING OUT THAT LAST GRAPH SHOWING OUR RATES VERSUS OUR PEERS HERE IN THE REGION.
HATS OFF TO OUR PUBLIC WORKS DEPARTMENT FOR RUNNING THE LOWEST COST WATER SYSTEM IN THE REGION.
NOW, THE GRANT FUNDING WE'RE GETTING FOR EXPANDING OUR INFRASTRUCTURE CERTAINLY IS A BIG HELP IN THAT DIRECTION BUT THESE ARE TODAY'S DOLLARS AND I THINK THAT'S WORTH RECOGNIZING.
I THINK YOUR SUGGESTION ABOUT INCENTIVES FOR LOCAL RESIDENTS TO HELP THEM GET TO THAT LOWER WATER USAGE, THAT WAS A MAIN DRIVER IN ASKING ALISON TO IMPLEMENT THIS SMOOTHING USE PART OF THOSE RESERVES TO GIVE FOLKS THE FULL FIVE YEARS TO CATCH UP.
THIS ISN'T SOMETHING THAT'S GOING TO SHOCK THEM ON THE NEXT JULY.
NOW, THEY HAVE THREE, FOUR YEARS WHERE MOST PEOPLE ARE GOING TO BE DOING ABOUT THE SAME BEFORE THEY HAVE TO MAKE THESE CHANGES IN THEIR HOMES AND YARDS.
WE HAVE SOME TIME TO DEVELOP THOSE PROGRAMS.
>> YEAH, AND I THINK THAT YOU'RE RIGHT.
MOST PEOPLE WILL NOT CHANGE OVERNIGHT, AND SO WE GOT TO START EARLY TO MAKE SURE THAT WHEN WE GET TO THAT YEAR 5, EVERYBODY HAS DONE OR THE MAJORITY PEOPLE HAVE DONE WHAT THEY NEED TO DO TO MITIGATE THEIR WATER USAGE, SO THAT THEY DON'T END UP WITH THIS HUGE SURPRISE WHICH FOR MANY OF THEM I WOULD SAY, IS GOING TO BE A BURDEN WHEN THEY REALIZE THAT, HEY, I CAN'T BE DOING WHAT I'VE BEEN DOING ALL ALONG MYSELF.
I THINK WE NEED TO GET AHEAD OF THAT. LET'S START IT RIGHT AWAY.
THANK YOU FOR TAKING THAT SUGGESTION.
WE'RE READY FOR THE SEWER PRESENTATION THAT YOU'RE GOING TO DO.
>> YEAH, LET'S GIVE HER A CHANCE TO UNFREEZE.
>> I DIDN'T MIND. [LAUGHTER] I THOUGHT SHE'S STILL FROZEN.
>> SHE JUST BLIPPED IN AND BLIPPED OUT AGAIN.
ALL I KNOW IS I'M NOT GIVING UP MY SLIP AND SLIDE THOUGH.
>> SCOTT. NEVER MIND [INAUDIBLE]
>> WE CAN HEAR YOU. [OVERLAPPING]
>> WE CAN HEAR YOU BUT YOU'RE STILL FROZEN ON THE MONITOR, WHICH MEANS WE CANNOT SEE YOUR SLIDES.
[01:40:03]
>> I THINK YOU'LL FIND THIS NEXT SECTION SUBSTANTIALLY LESS COMPLICATED.
>> NOW IS THE FINANCE DEPARTMENT PREPARED FOR THE AMOUNT OF THINGS THAT ARE GOING TO COME IN?
>> THEN WHY IS MY WATER BILL SO HIGH.
>> I'M GOING TO BE THE FIRST ONE TO CALL.
>> WELL, IT'S NOT HAPPENING IMMEDIATELY.
>> IT'S ALREADY HAPPENING. [LAUGHTER]
>> [INAUDIBLE] SEWER IS MUCH MORE SIMPLE TYPE OF UTILITY.
SO THE CHANGES FROM LAST [NOISE] TIME, WE REALLY SPENT A HUGE AMOUNT OF TIME LOOKING AT THE DATA, LOOKING AT ALL THE DIFFERENT TYPES OF CUSTOMERS, WHAT THEIR WATER USAGE PATTERNS HAVE BEEN OVER THE PAST FEW YEARS AND HOW THAT AFFECTS TO POTENTIAL SEWER FLOW.
USUALLY, I DO THAT FOR DIFFERENT OF CITIES IN UTILITIES ON A CLASS-BY-CLASS BASIS.
LOOK AT ALL THE BAKERIES USES ONE MONTH TOGETHER CATEGORY FOR YOU BASED ON DIRECTION.
LAST TIME, I LOOKED AT EVERY SINGLE ACCOUNT TO PULL OUT ANY OUTLIERS.
IF IT LOOKED LIKE SOMEONE HAD A LEAK, IF IT LOOKED LIKE A BUSINESS WAS NOT IN BUSINESS DURING OR A PORTION OF THE YEAR OR THERE WAS SOME OUTLIER, UNIQUE SITUATION.
AND SO WHAT THAT RESULTED IN IS VERY MUCH MORE MODERATE, MINIMAL RATE ADJUSTMENTS FOR THE CUSTOMERS.
AND I DID SPEND A LOT OF TIME ON SCHOOLS AS WELL SO I'LL TALK ABOUT THAT IN A MINUTE.
SO THE SEWER FUND HEALTH IS ALSO VERY STRONG.
I COMMEND YOU FOR NOT RAISING RATES SINCE 2007 AND OPERATING A VERY HEALTHY UTILITY.
WE HAVE APPROPRIATE CASH RESERVES.
WE APPROPRIATED [NOISE] IT TO ONE AND HALF TIMES YOUR ANNUAL OPERATIONS AND MAINTENANCE, IS GREAT.
AND WE HAVE NO PLAN FOR EXISTING DEBT WHICH IS FANTASTIC.
WE DO PLAN ON SPENDING SOME AMOUNT OF MONEY JUST TO KEEP UP THE SEWER LINE REPLACEMENTS THAT KEEPS YOUR BLOCKING SYSTEM OPERATING EFFICIENTLY, AVOID THE SEWER LEAKS, AND THINGS LIKE THAT.
AND THERE IS A MINIMAL INFLATIONARY ADJUSTMENT FOR THE UTILITY AS FOR RECOMMENDED IN SIMILAR TO WATER.
SO THIS IS ABOUT HALF OF YEAR CURRENT SEWER RATES SCHEDULE.
EVERYONE IS CHARGED A FIXED FEE AMOUNT BASED ON THE TYPE OF ESTABLISHMENT.
SO AT THE TOP, SINGLE-FAMILY AND MULTI-FAMILY CUSTOMERS PAY THE SAME MONTHLY BILL.
THERE'S NO DISCOUNT FOR MULTI-FAMILY COMPARED TO SINGLE-FAMILY.
IT'S $23.78 PER MONTH, AND THEN THE VARIOUS TYPES OF NON-RESIDENTIAL CUSTOMERS.
I'VE GOT ESTABLISHMENT AND I WANTED TO POINT OUT THAT FOR MOST OF THE COMMERCIAL CATEGORIES, WE TALKED ABOUT THIS LAST TIME, BUT HEARD EACH ACCOUNT.
SO I LIKED THE EXAMPLE, WE'LL USE THE SHOP.
IF YOU HAVE THREE HAIRCUTTING STATIONS VERSUS 10 HAIRCUTTING STATIONS, YOU PAY THE SAME BILL AS IT'S INTENDED OF THE WEEK AN AVERAGE.
SO AT SOME FUTURE TIME, THE CITY COULD LOOK AT OTHER TYPES OF RATE STRUCTURES, POTENTIALLY.
MAYBE CHARGE IT PER SALON STATION OR PER 1,000 SQUARE FEET.
THAT'S HOW YOU DO IT, WE GET A QUICK MARKET SECTION THERE.
THE GENERAL DIRECTION LAST TIME WAS TO MOSTLY KEEP THE SAME RATE STRUCTURE AND JUST UPDATE THE UNDERLYING ASSUMPTION.
IS ABOUT HOW DIFFERENT CUSTOMERS USE THE SEWER SYSTEM AND USE THAT AS THE BASIS FOR THE FEES THAT THEY PAY BUT KEEP THE OVERALL STRUCTURE [INAUDIBLE].
HERE'S THE SECOND HALF OF THE DIFFERENT RATES.
ONLY THING I DO WANT TO CALL OUT HERE IS THAT SCHOOLS ARE BILLED ANNUALLY INSTEAD OF MONTHLY AND THEIR BILL WERE AVERAGE DAILY ATTENDANCE.
SO LET'S TALK ABOUT DAILY THERE, [INAUDIBLE] VERSUS CHARGE ON A MONTHLY.
AS I MENTIONED, WE DIDN'T SPEND A LOT OF TIME LOOKING AT ESTIMATED SEWER FLOW PATTERNS THAT WE ARE USING WATER
[01:45:04]
OR WATER USE AS THE EFFICIENT WATER USAGE PERIODS.DURING WINTER, MAJORITY OF USAGE FLOWS INTO THE SEWER AND THAT'S NOT THE CASE DURING THE SUMMER.
IN SUMMER WE GROW WATERING OUR LAWNS, WATERING OUR GARDENS.
WATER WE USE DOESN'T FLOW INTO THE SEWERS SO YOU SHOULDN'T HAVE TO PAY FOR ANY WATER WHICH DOESN'T ACTUALLY GO DOWN THE SEWER DRAIN.
SO WE SPENT A LOT OF TIME UPDATING THE ESTIMATED FLOW AND THE LOOP FLOATING PATTERNS FOR THOSE CUSTOMERS' FLOW.
[INAUDIBLE] IS THE ACTUAL CHEMICALS AND THINGS WITH THE WASTEWATER TREATMENT- PLANT HAS TO GO FOR DISPOSING OF THE TREATMENT.
SO THERE IS A RANGE OF OUTCOMES FOR COMMERCIAL CUSTOMERS.
THE RANGE IS MODERATE HOWEVER, MOST CUSTOMERS ARE GETTING THAT MINIMAL INFLATIONARY INCREASE.
SOME CUSTOMERS ARE ACTUALLY DECREASING.
THE CUSTOMERS THAT ARE DECREASING TYPICALLY HAD A VERY SMALL NUMBER OF CUSTOMERS IN THAT CATEGORY.
AND I LOOKED AT THEIR WATER USAGE, IS IT A FLU? WAS THEIR USAGE REALLY LOW BECAUSE OF COVID? AND SOME OTHER REASON AND I JUST COULDN'T JUSTIFY THE RATE INCREASE BASED ON ACTUAL BILLING RECORDS OF THE WATER THEY WERE USING FOR A FEW CATEGORIES.
THERE'S NOT A HUGE REVENUE IMPACT ON THE CITY, BUT IT IS A WAY TO MAKE THINGS MORE FAIR BASED ON HOW THEY'RE ACTUALLY USING THIS.
SO CHECK, WE'VE GOT TWO OPTIONS.
WE TALKED ABOUT THESE OPTIONS PRIOR DOING BRIEF PRESENTATION.
THE MAIN OPTION WE'RE LOOKING AT IS THE MULTI-FAMILY RESIDENTS.
SHOULDN'T THEY CONTINUE TO BE CHARGED THE SAME RATE AS SINGLE-FAMILY OR DOES IT MAKE SENSE TO BREAK THEM OUT INTO WHAT I'M CALLING THE LONE PLEXUS, TRI-PLEXUS, AND QUADRUPLES OR UNITS? OR DOES IT MAKE SENSE TO KEEP ALL RESIDENTS OF MULTI-FAMILY AND SINGLE-FAMILY AS THE SAME RATE? SO WE LOOKED AT ESTIMATED OF FLOW.
SO WATER USAGE DISCHARGED INTO THE SEWER.
AND OVERALL, RESIDENTIAL CUSTOMERS ARE USING ABOUT SEVEN UNITS OF WATER.
ESTIMATED INDOOR EFFICIENT WATER USE AS WE TALK ABOUT WATER UTILITY.
SOME EVIDENCE [NOISE] THAT DIFFERENT TYPES OF MULTI-FAMILY CUSTOMERS HAVE LOWER FLOWS AND THAT COULD BE USED AS THE BASIS FOR A LOW RATE.
SO INSTEAD OF SEVEN UNITS OF FLOW, THEY'RE USING FIVE OR FOUR UNITS FLOW.
SO THIS IS THE TYPICAL BILL IMPACT FOR OPTION 1 TREATING EVERYBODY THE SAME.
AND SO YOU CAN SEE IT'S LESS THAN A DOLLAR INCREASE [INAUDIBLE] VERY MODERATE RATE IMPACT HERE.
AND THEN DIFFERENT THAN THE PRIOR RATE ADJUSTMENT THAT I SHOWED IN JUNE, WAS THE JUNE RATE BIGGER LIKE FIRST AND SECOND YEAR JUMP? THIS VERSION HAS A MORE GRADUAL PHASING.
AND HERE ARE THE PROPOSED RATES, IF WE DO SEPARATE THEM OUT INTO MULTIFAMILY RATES.
NOW THE REASON THE SINGLE-FAMILY RATE IS HIGHER UNDER OPTION 2 IS THAT SINGLE-FAMILY CUSTOMERS ARE NO LONGER GETTING THE BENEFIT OF AT AVERAGING.
SINCE THE MULTIFAMILY CUSTOMERS HAVE LOWER FLOW, SINGLE-FAMILY CUSTOMERS HAVE LOWER FLOW-HIGHER FLOW, UNDER THE AVERAGING IT MEET IN THE MIDDLE, BUT NOW THEY'RE SEPARATED BACK OUT.
SO SINGLE-FAMILY IS PAYING MORE OF ITS FAIR SHARE AND NOT GETTING THE BENEFIT OF THAT LOWER RATE AVERAGE THEN.
BUT YOU CAN SEE THE RATE IMPACT IS STILL VERY VERY MODERATE, LESS THAN A $2 RATE CHANGE FOR EACH BILL CHARGED EACH YEAR AT THE.
[NOISE] VERY MODERATE RATE CHANGE.
SO HERE ARE THE IMPACTS OF THE TYPICAL SINGLE-FAMILY CUSTOMER COMPARED TO OTHER LOCAL SEWER UTILITIES.
EITHER OPTION; OPTION 1 OR OPTION 2 DOESN'T EVEN CHANGE YOUR RANKING.
YOU'VE HIRED A NUMBER OF AGENCIES.
[01:50:01]
YOU ARE IN THE MIDDLE RANGE, LOWER, FULL RANGE.NOT THE CHEAPEST, BUT CERTAINLY NOT THE MOST EXPENSIVE.
AND I MET THIS WATER UTILITY WHERE THIS WAS A SURVEY CONDUCTED IN JULY AND I WILL CONTINUE TO UPDATE THE SURVEY AS WE PROCEED WITH THE RATE PROCESS.
SO I WANTED TO SPEND A LITTLE MORE TIME ON TYPICAL RESIDENTIAL BILL IMPACT AND THEN I'LL TALK ABOUT NON-RESIDENTIAL, COMMERCIAL, AND SUPPORT CUSTOMERS.
SO HERE IS A MARKUP OF AN ACTUAL BILL.
[BACKGROUND] SO THIS CUSTOMER, THIS WOULD BE THE JULY PERIODS AND FROM THE MIDDLE OF JUNE, THE MIDDLE OF JULY THIS PERSON WAS USING 19 UNITS OF WATER AND THAT'S THE TYPICAL JULY USAGE UNDER THE CURRENT BILL.
THAT PERSON IS NOT USING OVER THE 25 UNITS.
SO THEY'RE PAYING THE BASE MINIMUM FEE OF $28.60, THAT PERSON IS PAYING A CURRENT SEWER BILL OF $23.78 AND THE CURRENT REFUSE RATE.
NOTE IN SOME OF THESE BUILD MOCK-UPS I'LL SHOW HOW THE REFUSE RATE IS INCREASING AS WELL.
THAT IS IN FRONT OF MY STUDY THAT I KNOW THAT THEY DID INCREASES THE REFUSE RATE PLAN RECENTLY.
SO THIS PERSON IS PAYING $86.12 CURRENTLY.
SO THIS IS A TYPICAL BILL THAT THE PERSON'S BILL WOULD LOOK LIKE ON JANUARY 1ST, 2023.
THE TYPICAL JANUARY BILL WOULD BE ABOUT 10 UNITS OF WATER USAGE.
AND REMEMBER THE PROPOSED WATER RATE PLAN THAT HAS THE BILL STAYING THE SAME, THE $28.60, ALTHOUGH THE MINIMUM AMOUNT OF WATER IS DECREASING 0.5 UNITS FROM 21 UNITS.
BUT THIS PERSON IS ONLY USING 10 UNITS.
SO THIS PERSON DOESN'T HAVE ANY OVERAGE VOLUME BILL ON THE WATER SIDE.
AND JUST AS AN EXAMPLE, YOU PUT IT OPTIONS 2.
AND SO THIS PERSON IS PAYING $1.28 MORE OR ABOUT 1.5 PERCENT.
AND THEN SIX MONTHS LATER IN JULY, THIS PERSON IS USING 19 UNITS AGAIN BECAUSE IT IS THE SUMMER MONTH PLUS SOME RE-ADJUSTMENTS.
NOW THIS PERSON'S WATER BILL IS $30.39, BUT YOU'RE GETTING A LOT OF WATER FOR THAT BILL.
THEY'RE GETTING MORE WATER THIS TIME COMPARED TO THEIR JANUARY BILL AND THIS PERSON'S SEWER RATE HAS GONE UP AND THE CITY HAD IMPROVED REFUSE RATE THAT [NOISE] IS GOING UP AS WELL THAT'S WHY THAT ONE IS HIGH.
FROM JANUARY 1ST TO JULY 1ST, THAT PERSON IS PAYING ABOUT $9 MORE, WHICH IS ABOUT 10 PERCENT OVERALL.
AGAIN, I WOULD SAY THEY'RE GETTING A LOT MORE WATER ON THIS BILL.
WE SHOW THE MARK-UP THERE OF POTENTIAL BILLS, WHAT THE CUSTOMER WOULD ACTUALLY SEE IN THEIR MAILBOX THERE [INAUDIBLE] WITH THE DIFFERENT METRICS FROM THE FIRST [INAUDIBLE].
LET'S SWITCH OVER TO COMMERCIAL RATES.
I KNOW THERE'S A LOT OF MEMBERS ON THIS CHART, MAYBE HELPFUL TO LOOK AT YOUR COUNCIL PACKETS.
THESE ARE THE DIFFERENT COMMERCIAL CATEGORIES.
WE DON'T NEED TO WALK THROUGH EVERY SINGLE ONE.
MOST OF THE FOLKS [NOISE] THAT ARE GETTING INCREASES ARE VERY MODERATE PERCENT INCREASES, TWO OR THREE PERCENT OR LESS.
THERE ARE SOME AS I MENTIONED EARLIER, THAT ARE GETTING DECREASES [OVERLAPPING] IN BARBER, BEAUTY SHOPS.
VERY QUICKLY, I WANTED TO EMPHASIZE THAT THE CURRENT BARBERSHOP RATE, IS ALMOST $35 AND THE CURRENT SINGLE-FAMILY RESIDENTIAL RATE IS ABOUT $24.
I JUST WONDER ABOUT THE PROPORTIONALITY THERE.
WHY IS IT A BARBERSHOP OR BEAUTY SHOP PAYING $10 MORE THAN A TYPICAL SINGLE-FAMILY RESIDENTIAL HOME? BARBERSHOPS, BEAUTY SHOPS DO PUT A LOT OF POLLUTANTS HIGHER PERCENT CONCENTRATED RELEASE INTO THE DRAIN, BUT ARE THEY REALLY USING WATER 24 HOURS A DAY LIKE A SINGLE-FAMILY HOME? I ALWAYS WONDERED, CURRENTLY, BARBERSHOP IN PARTICULAR, IS MAYBE TOO HIGH AND SAME WITH THE BARS WITHOUT DINING.
I THINK THERE WAS ONE CUSTOMER IN THAT CATEGORY.
[01:55:04]
IS THAT ESTABLISHMENT THAT DO NOT SERVE FOOD, SO THEY'RE NOT WASHING DISHES QUITE AS MUCH, THEY'RE NOT RELEASING FATS, OILS, AND GREASE.IT'S VERY COSTLY TO TREAT ANY OF THOSE.
I REALLY DID NOT SEE THE BIG REASON TO INCREASE THEIR BILL.
FOR THESE FOLKS THAT DO HAVE DECREASES, THEY GET THE JANUARY 1ST BENEFIT OF A DECREASE AND THEN THEY HAVE THE TWO PERCENT INFLATIONARY INCREASE TO YOUR AVERAGE [NOISE] THEY DO GET THE BENEFIT OF FIRST PLACING EVERYTHING IN SOME CASES RATE DECREASE.
JUST MENTIONED ONE MORE TIME, THAT THE NUMBER OF CUSTOMERS GETTING DECREASES, VERY SMALL NUMBER OF CUSTOMERS.
A DOZEN OR SO CATEGORY [NOISE] THAT DOESN'T INTERCEPT CUSTOMERS IN THESE CATEGORIES WE'RE GETTING DECREASES.
THEN MOST OTHER FOLKS THAT WOULD BE GETTING INCREASES WERE PRETTY MODERATE.
HERE'S THE PERCENT CHANGES, IT VARIES AND THEN THE NUMBER OF CUSTOMERS.
[NOISE] SOME OF THESE, LIKE COMMERCIAL PLANNERS, THEY HAD A DECREASE BUT THERE'S ONLY ONE CUSTOMER IN THAT CATEGORY, FOR EXAMPLE.
A LOT OF THEIR ABILITY IN THE COMMERCIAL CUSTOMER CLASS BUT, IT'S AN UPDATE FROM THE FIRST PRESENTATION AND IT REFLECTS A HEAVY DEEP DIVE INTO EVERY SINGLE CUSTOMER WHO USE DIFFERENT CATEGORIES IN TRYING TO IDENTIFY ANY OUTLIERS AND ANY ODDBALLS THAT MAYBE DON'T REFLECT [INAUDIBLE] TYPICALLY RAW [INAUDIBLE]
>> I WOULD SAY, VERY NICE DECREASE FOR THE COMMERCIAL CLEANERS.
UNFORTUNATELY, THEY WON'T TAKE ADVANTAGE OF IT, THEY'RE NO LONGER IN BUSINESS.
>> ALL RIGHT. I'M SORRY TO HEAR THAT.
BUT IF YOU GET ANOTHER ONE, MAYBE SOMEDAY IN THE FUTURE THAT WOULD APPLY.
[BACKGROUND] ON THE SECOND CHART, WE HAD A FEW CATEGORIES WHERE THERE ARE NO CUSTOMERS AND WE DON'T EXPECT ANY CUSTOMERS TO COME ON IN THE NEAR FUTURE, SO THOSE ARE CROSSED OUT.
LAST TIME THE COUNCIL DID DIRECT ME TO LOOK INTO THE MORTUARY [NOISE] AND THERE IS A MORTUARY AND IT'S REALLY THE OFFICE, THE OFFICE IS THE ONE THAT PAYS THE BILL FOR THE MORTUARY.
THEY'RE PAYING THE MORTUARY WITHOUT THEM ALL IN THE OFFICE RATE IS THE SAME WHICH MAKES SENSE, SO WE'RE PROPOSING TO CONTINUE FOR THE STRUCTURE.
PRETTY MINIMAL RATE CHANGES FOR RESTAURANTS AND DECREASE FOR POOL HALLS, EXCEPT THE POOL HALL RATE IS THE SAME AS THE BARS WITHOUT DINING RATE, THAT'S WHY THAT ONE IS GETTING A DECREASE [NOISE] THE EPISODE OF THE MORTUARY FROM TIME TO TIME THERE IS THAT ONE CUSTOMER.
[BACKGROUND] I DID HAVE A NOTE HERE.
INDUSTRIAL RATES, WE HAVE TWO MAJOR INDUSTRIAL CUSTOMERS AND WE LOOKED INTO THEIR USAGE PATTERNS IN THEIR BILLS.
SAME AS ALL THE OTHER CUSTOMERS AND THEY HAVE A SPECIAL SERVICE AGREEMENT.
MOST OTHER, WELL, TO ALL OTHER CUSTOMERS, THEIR RATES HAVE NOT BEEN ADJUSTED SINCE 2007.
BUT IN LOOKING THROUGH THE RECORDS FOR THE INDUSTRIAL CUSTOMERS, THEIR RATES HAVE INCREASED OVER TIME AND THEY PAY SPECIAL OVERAGE FEES FOR BOTH VOLUME AND CONCENTRATION OF POLLUTANTS [NOISE] DISCHARGED INTO THE CITY SYSTEM, WHICH ACCOUNTS HIGHER COSTS OF TREATMENT FOR THOSE CUSTOMERS.
WITHOUT THAT BECAUSE OF THE SERVICE CHARGES THAT THOSE SERVICE AGREEMENT IN PLACE OVERCHARGES ALREADY.
WE WERE NOT PROPOSING TO ADJUST THOSE.
THEN I'LL WRAP UP WITH THE SCHOOLS.
AS I MENTIONED, THOSE ARE BUILT ON AVERAGE DAILY ATTENDANCE, AVERAGE DAILY ATTENDANCE THE PREFERRED ONES THAT TOOK ANNUALLY.
WHEN WE FIRST STARTED THE SCHOOL DISCUSSION, THERE WAS CONFUSION ABOUT THE NUMBER OF ACCOUNTS DOES A SCHOOL HAS, THE VARIOUS SCHOOLS WITHIN THE CITY AND HOW THEY USE WATER AND HOW THEY USE SEWER.
INITIALLY, WE THOUGHT BASED ON THE DESIGNATION OF ACCOUNTS THAT WE CAN
[02:00:05]
IDENTIFY WATER METERS AND WATER SERVICE LINES THAT SERVE INDOOR AREAS OF THE SCHOOL BUILDING.THE SCHOOLS HAVE A VERY LARGE OUTDOOR IRRIGATION WATER DEMAND, RIGHT? THEY HAVE HUGE BATTLE FIELDS FOR SPORTS AND GRASSY AREAS FOR THE KIDS AND STUDENTS, SO IT'S IMPORTANT THAT WE IDENTIFY ONLY WATER USE THAT GOES INTO THE SEWER TO BE AS FAIR AS POSSIBLE FOR THOSE SCHOOLS.
WE SPENT A LOT OF TIME AND AT LEAST CITY STAFF WHO WENT AND MET WITH THE SCHOOLS AND LOOKED AT SOME OF THE METER BOXES AND THINGS ON THE SCHOOL GROUNDS TO IDENTIFY WHICH ONES ARE GOING TO THE BUILDINGS VERSUS WHICH LINES ARE OUTDOORS TO BE AS FAIR AS POSSIBLE.
THE PROBLEM [LAUGHTER] WAS THAT THERE AREN'T ACCOUNTS THAT ARE INVOLVED IN THIS.
THEY DON'T KNOW IF THIS IS ALL INTERMINGLE, WE WEREN'T ABLE TO PARSE THAT.
WHAT WE'RE GOING TO DO IS INDUSTRY AVERAGE ESTIMATES EIGHT GALLONS PER DAY FOR ELEMENTARY SCHOOL STUDENTS AND 10 GALLONS PER DAY FOR HIGH SCHOOL STUDENTS.
THERE IS A RANGE OF ESTIMATES.
I'VE SEEN OTHER LOCAL AGENCIES ANYWHERE, I FOUND EACH ONE FOR HIGH SCHOOL STUDENTS REALLY FIVE IS MORE ELEMENTARY THEN 20S FOR HIGH SCHOOL STUDENTS.
WE ARE GIVING THE SCHOOLS THE BENEFIT OF THE MID TO LOWER-RANGE WATER USAGE FOR THE RATE ADJUSTMENT, WHICH, AGAIN ENDED UP BEING JUST A VERY MINOR INFLATIONARY RATE INCREASE EACH YEAR, SO THAT'S MUCH MORE MODERATE THAN THE FIRST ADJUSTMENT.
I'LL [NOISE] RETURN VIRTUALLY OR IN PERSON IN SEPTEMBER.
THEY DO WANT TO INCREASE RATES IN THAT JANUARY 1ST DEADLINE, WORKING BACK THROUGH THE PROPOSITION TO WAITING PROCESS.
WHAT YOU NEED TO DO UP TO 18 HEARING IN DECEMBER, WHICH MEANS THAT THE NOTICES WE NEED TO BE MAILED IN NOVEMBER OR LATE OCTOBER BECAUSE THERE IS A 45 DAY WAITING PERIOD REQUIREMENT.
WE CAN'T GET AROUND THAT IT'S THE LEGAL STATUTE, SO THAT PROVIDES US TIME IN OCTOBER AND SEPTEMBER TO FINALIZE ANY RATE ADJUSTMENTS AND DRAFT AND SUBMIT A REPORT TO CITY COUNCIL AND CONDUCT GREAT COVERAGE HERE.
THAT'S THE GENERAL PLAN TO GET TO JANUARY 1ST IMPLEMENTATION DATE.
WE'RE PROPOSING TO DO WATER AND SEWER [INAUDIBLE].
THAT'S WHAT I'VE GOT AND I'M HAPPY TO ANSWER QUESTIONS.
THE OVERALL GOAL FOR TONIGHT IS TO SEE IF WE'RE COMFORTABLE WITH THE RATE OPTIONS OR WE NEED TO REVISE EVERYTHING INSTEAD OF CREATE A PATH FORWARD.
>> THANK YOU, ALISON. ARE THERE ANY QUESTIONS FROM THE MEMBERS REGARDING THE SEWER RATES, AND IN PARTICULAR, WHETHER WE WANT TO MAINTAIN THE CURRENT STRUCTURE OF FEES, WHICH IS, I BELIEVE, THE SAME FOR EVERYONE.
WHETHER WE WANT TO CHANGE THEM PER CLASS? WHAT DO YOU THINK ABOUT THAT?
>> OPTION 1, YOU'RE TALKING ABOUT THE OPTIONS, CORRECT?
>> THE OPTION 1 BETWEEN YEAR 1 AND YEAR 5, I'M COMING UP WITH A DEBT OF $3.27 INCREASE.
OPTION 2, SINGLE FAMILY RESIDENCE, I'M SEEING THEM PAYING, AGAIN, THIS IS OVER THE FIVE-YEAR PERIOD, $6.39.
LOW DENSITY IS DECREASING $2.96, AND APARTMENT, MOBILE HOMES DECREASING BY $6.41.
ON PAGE 27 OF YOUR PRESENTATION, THE APARTMENTS, MOBILE HOME PARK, FOR EXAMPLE, HOW WAS THE 4.24 ESTIMATED FLOW DETERMINED?
>> WE LOOKED AT BILLING RECORDS OVER THE PAST THREE YEARS. SO I WENT THERE.
EVERY MONTH, WE HAVE WATER USAGE REPORTED FOR THE VARIOUS ACCOUNTS, AND THE ACCOUNTS SAY HOW MANY DWELLING UNITS ARE ASSOCIATED WITH EACH APARTMENT COMPLEX.
[02:05:08]
I PICKED THE THREE LOWEST WATER USAGE PERIODS, AND COINCIDED WINTER WATER USE, AND THEN DIVIDE BY THE NUMBER OF MONTHS.>> AGAIN, THIS IS ESTIMATED, OR IS THERE SOME WAY TO TELL HOW MUCH?
>> THE WATER USAGE IS THE STRONGEST CORRELATION TO SEWER FLOW VOLUME.
THAT'S WHY ALISON AND SOPHIA CHOSE THOSE MONTHS THAT HAVE A DE MINIMIS OUTDOOR USE, NON-EFFICIENT INDOOR USE TO TRY TO DETERMINE, WELL, HOW MUCH HAS ACTUALLY GONE DOWN THE DRAIN? WITHOUT HAVING METERS ON RESIDENTIAL SEWER LINE, WHICH WE DON'T HAVE THAT, THIS IS THE BEST METHOD OF ESTIMATING THAT.
I WON'T SPEAK FOR ALISON, BUT I IMAGINE THERE ARE INDUSTRY ASSUMPTIONS ABOUT THESE VOLUMES.
ALISON, WERE THESE COMPARED TO SOME OF THOSE ASSUMPTIONS, AND WERE WITHIN A BELIEVABLE RANGE?
>> YES. THE ADDED NEGATIVE INFORMATION I'LL GIVE IS THAT, I USED THIS PROCESS TO ANALYZE ALL THE DIFFERENT CUSTOMER CLASSES, AND THEN YOU ADD IT UP AND MULTIPLY IT BY 12 MONTHS A YEAR.
THEN IT DOESN'T EQUAL WHAT YOU'RE GETTING AT YOUR SEWER PLANT BECAUSE YOUR SEWER PLANT ISN'T HERE.
INDIVIDUAL CUSTOMERS ARE NOT NEEDED BY YOUR SEWER PLANTS ISN'T HERE, AND DOES IT MATCH? IT ROUGHLY MATCHES.
THERE'S A FEW PERCENT NEW MARGIN ERROR, BUT IT DID ROUGHLY MATCH.
>> ALTHOUGH IT'S ESTIMATED, IT'S NOT A GUESS.
IT'S BASED ON ACTUAL FLOWS AND MEASUREMENT OF THE WATER THAT'S GOING IN AND WHAT'S ENDING UP AT THE PLANT. THANK YOU, MR. MAYOR.
>> MEMBER GARCIA, CAN YOU STATE YOUR PREFERENCE AS TO OPTION 1 OR 2, OR BOTH?
>> IS THAT WHAT WE'RE DOING? I'M STATING THE PREFERENCE FOR OPTION 1? [OVERLAPPING]
>> IF YOU HAVE ANY COMMENTS OR QUESTIONS.
I WAS SAYING WHETHER WE WANT TO ALSO MAINTAIN THE CURRENT RATE STRUCTURE, WHICH IS THE SAME FOR EVERYONE IN EVERY CATEGORY, OR DO WE WANT TO CHANGE IT?
>> A PREFERENCE BETWEEN OPTION 1 AND 2?
>> [NOISE] TO BE HONEST, I'M STILL INDIFFERENT ON THE OPTIONS, BUT I WAS CURIOUS, HOW COME THERE WASN'T AN ITEM FOR PUBLIC POOLS ON COMMERCIAL SEWERS.
IS IT BECAUSE IT'S NOT COMMERCIAL, OR BECAUSE IT SAYS ZERO?
>> YEAH. WE DIDN'T SEE ANY CUSTOMERS IN THAT CATEGORY.
>> WE DO HAVE A PUBLIC SWIMMING POOL.
THE BILLING IS PROBABLY GOING TO REC BUILDING.
IT ISN'T BROKEN OUT SEPARATELY FROM THE RECREATION DEPARTMENTS MULTI-USE BUILDING.
>> EVEN THOUGH, THEY HAVE SEPARATE RESTROOMS AND EVERYTHING.
>> YEAH. THAT'S THE ONLY THING I WANTED TO KNOW. [NOISE] [OVERLAPPING]
>> WE'VE ESTABLISHED A RATE IF WE DECIDE THAT IT MAKE SENSE TO SPLIT THAT OUT [OVERLAPPING].
>> JUST LET THEM BE, TERRIBLY MUCH.
I JUST WAS WONDERING WHY THAT WAS, BUT THAT MAKES SENSE.
>> I GUESS, THE QUESTION WOULD BE, WHAT BENEFIT WITH THAT BRING TO THE CITY AND TO OUR RESIDENTS TO DO THAT?
>> TO SEPARATE OUR POOL OR OPTION 1, 2?
>> WE GOT A LOOK AT IT. IT MIGHT ACTUALLY RESULT IN A REDUCTION TO REC DEPARTMENT'S OVERALL BILL.
>> IT MIGHT, AND THAT'S SOMETHING WE'VE TALKED ABOUT IN THE PAST.
BUT JUST FOR FACE VALUE, THE WAY I'M LOOKING AT IT, IT WOULD SEEM EASIER AND SIMPLER TO JUST KEEP IT STRAIGHT AND SAME ACROSS.
BUT IT SEEMS FAIR THAT ME, AS A SINGLE-FAMILY RESIDENCE OR OWNER, DOES PUT OUT MORE FLOW THAN AN AVERAGE APARTMENT, WHICH IS A MUCH SMALLER.
AGAIN, I DON'T FEEL LIKE I'M COMFORTABLE MAKING A PREFERENCE STATEMENT RIGHT NOW, BUT THOSE ARE MY INITIAL COMMENTS.
>> THANK YOU, MEMBER GARCIA. MEMBER LYNCH?
>> I LIKE TO PAIR IT TO WHAT HE SAID.
I DON'T KNOW THAT I HAVE A PREFERENCE IN MAKING CHANGES.
I THINK PROBABLY THE SEWER FLOW, JUST MY PERSPECTIVE WOULD BE THE FACTOR THAT,
[02:10:01]
IN MY SINGLE-FAMILY RESIDENCE, I HAVE WASHING MACHINE, AND DISHWASHER WHERE YOU WOULDN'T NECESSARILY HAVE THAT IN AN APARTMENT.>> YES. THAT'S A GOOD POINT. THANK YOU. GOOD POINT.
>> IS THERE A RECOMMENDATION OR PREFERENCE FROM STAFF AS TO WHICH STRUCTURE?
>> I DON'T KNOW THAT WE'VE ACTUALLY DISCUSSED THAT FINE POINT.
IF YOU'RE LOOKING FOR AN OPINION, I THINK, YOUR POINT COUNCIL MEMBER GARCIA IS A GOOD ONE ABOUT JUST THE EQUITABLE SHOULDERING OF THE COST.
[OVERLAPPING] THOSE THAT ARE USING AND DISPOSING OFF MORE WATER, IT'S FAIR TO PAY A LITTLE BIT MORE THAN THOSE THAT ARE USING LESS.
FROM THAT STANDPOINT, IT PROBABLY IS SLIGHTLY MORE COMPLICATED.
FROM A BILLING STANDPOINT, WE HAVE THREE CATEGORIES, INSTEAD OF ONE.
BUT WE KNOW WHAT TYPE OF RESIDENCE IS AT EACH BILLING ADDRESS FOR EACH ACCOUNT.
I DON'T THINK ONCE IT'S SET UP, IT'S BURDENSOME TO MAINTAIN.
>> WELL, IF THAT'S THE CASE, I'M FOR THE STANDARD RATE STRUCTURE THAT'S FLAT, BECAUSE WE'RE GOING TO HAVE SOME APARTMENTS AND SOME MOBILE HOMES THAT ARE GOING TO BE ABOVE THE USAGE AND SOME BELOW.
IF WE'RE TALKING ABOUT FAIRNESS, IF YOU'RE USING ABOVE THE USAGE, BUT YOU'RE PAYING LESS JUST BECAUSE YOU'RE IN AN APARTMENT, THAT'S NOT FAIR TO EVERYBODY ELSE EITHER.
I THINK JUST KEEP IT AS A FLAT RATE.
>> I'D LIKE TO POINT OUT ALSO, THAT SINGLE RESIDENCE OWNERS ARE BEING HIT WITH INCREASE ON THE WATER RATE, AND SO KEEPING THE SEWER AT THE CURRENT RATE, WHICH IS EQUAL FOR EVERYBODY, WOULD ALLEVIATE AN ADDITIONAL COST [OVERLAPPING] TO HOME OWNERS.
>> ANYWAY, THAT'S MY TAKE ON THAT.
IF IT AIN'T BROKEN, DON'T FIX IT. [LAUGHTER]
>> BOTH CONTRIBUTE TO A HEALTHY OUTCOME IN THE END WITH THE HOBBIES?
>> YES. PROVIDING THE FUNDS NEEDED TO RUN THE ENTERPRISE, THE ANSWER IS YES.
IT SOUNDS LIKE THE GENERAL CONSENSUS IS TO STAY WITH THE SINGLE RATE STRUCTURE, RATHER THAN BREAKING IT INTO OPTIONS.
>> IT APPEARS THAT WAY TO ME. [NOISE]
>> WHAT ELSE DO YOU NEED FROM US AT THIS TIME?
>> IF THERE ARE ANY SIGNIFICANT CHANGES THAT WE NEED TO GO BACK AND REHASH AGAIN ON THE WATER RATE STRUCTURE.
I KNOW IT'S VERY COMPLEX WHAT WAS PRESENTED TONIGHT.
BUT AS WE HAD IN A SIDE CONVERSATION HERE, WE'RE CORRECTING TWO OR THREE ISSUES AT ONE TIME, OR WE'RE DIVING DOWN TOWARD A STATE-MANDATED TARGET FOR BASE USE PER HOUSEHOLD OR PER ACCOUNT.
WE'RE GETTING OUR ADJUSTMENT TO A MORE REASONABLE USE COST ABOVE THE BASE.
SOMETHING THAT'S A LITTLE MORE MANAGEABLE AND WE'RE ALSO ADJUSTING WITHIN CATEGORIES TO MAKE SURE IT'S A LITTLE MORE FAIR THAN WE'VE DONE BEFORE.
A LOT OF MOVING PARTS, BUT IT DOES BALANCE, IT DOES PROVIDE THE FUNDING WE NEED.
IT LEAVES US WITH RESERVES THAT WE CAN CHOOSE TO USE INFRASTRUCTURE IF WE SO CHOOSE.
I WOULD REMIND THE COUNCIL WE DO NOT HAVE THAT REVOLVING FUN CHECK IN OUR HAND YET.
I WOULDN'T WANT TO SPEND DOWN BEYOND WHAT WE'RE PROPOSING HERE UNTIL WE ACTUALLY HAVE THAT IN HAND AND COSTS ARE RISING.
I THINK WHAT WE'RE LOOKING FOR TONIGHT ON THE WATERSIDE IS THAT OUR RATE STRUCTURE THAT WE'VE PRESENTED TONIGHT IS A GOOD ONE AND IS ONE THAT YOU BELIEVE WILL REPRESENT THE COMMUNITY WELL.
IT'S FAIR ACROSS DIFFERENT CATEGORIES OF CUSTOMERS AND IT BETTER ALSO ADDRESSES THE REALITIES THAT WE NEED TO FACE OF INCENTIVIZING LOWER USE AND WELL KEEPING UP WITH OUR ENTERPRISE COSTS.
>> INFRASTRUCTURE THAT WAS LIKE ONE LINE IN HERE.
BUT I REALLY THINK THEY NEED TO BE PART OF THE OUTREACH THAT WE DO, JUST LIKE WE DID WITH THE OTHER RATES WHICH IS WE JUST RECENTLY CHANGED.
INFRASTRUCTURE WE DON'T TALK ABOUT IT ENOUGH AND BEING ABLE TO HAVE THE RESERVE TO DO A MILE, I THINK JUST HAD A MILE PER YEAR OR EVERY THREE? THAT'S KEY.
[02:15:02]
>> YOU'RE TALKING ABOUT SOAR BECAUSE ONE OF THE REASONS WHY THE INFRASTRUCTURE IS NOT A MAJOR COMPONENT OF THE WATER IS BECAUSE WE'RE GETTING THAT 25 MILLION DOLLARS TO UPDATE OUR INFRASTRUCTURE.
BUT FOR MY PART, A LOT OF INFORMATION TO DIGEST I THINK WE'RE ON THE RIGHT TRACK.
I FEEL A LOT MORE COMFORTABLE TODAY THAN I DID THE LAST TIME.
ALISON, YOU'VE DONE A VERY GOOD JOB AT PRESENTING A MORE PALATABLE OPTION, AT LEAST FOR ME.
BUT I'D LIKE TO STUDY THIS AND I THINK WE STILL HAVE TIME.
>> OUR NEXT REGULAR SCHEDULED MEETING IS UNTIL SEPTEMBER 20TH.
THERE'S SOME WORK THAT WE WOULD DO BETWEEN NOW AND THEN IF WE'RE GOING TO BE MAKING CHANGES AND IF WE DON'T EVEN START TILL AFTER THE 20TH, WE'RE GOING TO RUN INTO THAT CALENDAR.
>> I DON'T FORESEE ANY CHANGES, BUT I DO WANT TO MAKE SURE THAT I UNDERSTAND THIS VERY WELL.
I MAY COME TO YOU IF I HAVE ADDITIONAL QUESTIONS.
>> ANY OF YOU COUNCIL MEMBERS ARE WELCOME.
>> DEFINITELY I WOULD ENCOURAGE EVERYBODY TO DO THAT.
IF YOU HAVE FURTHER QUESTIONS, GET AN ANSWER FOR THEM SO THAT NEXT TIME WHEN WE MEET, WHENEVER THAT MIGHT BE.
I THINK THE LAST MEETING IN SEPTEMBER, THE SECOND MEETING.
>> WE SHOULD BE ABLE TO GIVE YOU SPECIFIC DURATION, WHICH I THINK WORKS WELL FOR THE CALENDAR BECAUSE ALISON WAS TALKING ABOUT EITHER IN NOVEMBER MOVING FORWARD WITH THE CALENDAR TO BE ABLE TO BRING IT TO THE PEOPLE AND HAVE THE HEARINGS AND STUFF.
>> IF YOU'RE COMFORTABLE WITH THAT, I WOULD PROBABLY BE OKAY.
>> I THINK SO. YOU'D HAVE THE CALENDAR IN MY PACKET THERE IT'S ONE OF THE SLIDES.
>> SURE. I THINK THIS WAS NOT AN EASY THING.
I THINK FOR THIS VERY WELL PREPARED.
THANK YOU, ALISON. THANK YOU FOR ALL THE WORK THEY'VE DONE.
THE NUMBER OF MY 4TH MAIL-OUT DATE, IS THAT BASED ON A HARD AND FAST 45 DATE, OR IS THAT THEY'RE A LITTLE BIT OF ROOM THERE?
>> THE ONLY REASON I SAY THAT IS BECAUSE IF POSSIBLE TO MOVE IT AFTER THE ELECTION.
BECAUSE DOING THAT BEFORE THE ELECTION JUST MIGHT POTENTIALLY GET LOST IN THE MAIL AND LET'S BE VERY REAL WE ALL DO WITH OUR ELECTION MAIL.
I'M JUST GOING TO PUT THAT OUT THERE, DO WHAT YOU WANT WITH THAT INFORMATION.
BUT THAT'S THE ONLY CONCERN THAT I HAVE ON THIS TIMELINE.
>> PROBABLY A VALID ONE BECAUSE PEOPLE GET A TON OF MAIL.
>> I'M JUST TALKING ABOUT PARTICIPATION.
>> THAT IS 19 LOOKS LIKE 46 DAYS BETWEEN THE 4TH AND DECEMBER 20TH, MAYBE 47.
>> THERE IS NO WIGGLE ROOM. GOOD LUCK.
>> I DO HAVE ONE MORE QUESTION AND ALISON ALLUDED TO IT.
LAST TIME WE MET, I HAD REQUESTED THAT WE REACH OUT TO THE SCHOOLS TO GET THEIR INPUT ON THIS BECAUSE I HAD RECEIVED AN EARFUL THE LAST TIME WE DID OUR WATER RATES FROM THE SUPERINTENDENT OF SCHOOLS.
I DID TELL HIM THAT I HAD ASKED STAFF TO REACH OUT TO HIM AND I ASKED HIM WHAT THEIR STAFF HAD, ANOTHER TIME STAFF HAD NOT.
IF WE HAVEN'T DONE THAT, ALTHOUGH I DO THAT YOU MIGHT HAVE.
THIS MAKES SURE THAT WE DO SO THAT I THINK THEIR INPUT IS IMPORTANT TO MAKE SURE THAT, EVERYBODY UNDERSTANDS WHAT WE'RE DOING.
I SEE SMILES AND I'M NOT SURE WHAT TO MAKE OF THEM.
IF THERE'S NOTHING ELSE, CAN WE MOVE FORWARD AND ADJOURN AT THIS TIME?
>> NO WE'VE REMOVED THAT ITEM.
>> OH, THAT'S RIGHT. I REMEMBER.
IT'S BEEN A LONG [OVERLAPPING] [NOISE]
>> I DO HAVE ONE QUICK ITEM TO SHARE.
I RECEIVED URGENT EMAIL FROM GEORGIANA ARMSTRONG AT THE COUNTY FIRE.
THEY'VE GOT AN EXTRAORDINARY ANNOUNCEMENT FROM NOAA THIS
[02:20:05]
TODAY ABOUT THIS DANGEROUS HEAT PATTERN THAT'S DEVELOPING.SHE SENT ME A 30-SLIDE PRESENTATION, WE WON'T DO THAT.
BUT I WILL SHOW YOU THE FIRST FIVE PAGES AND I THINK IT'S WORTH JUST TAKING NOTE.
THEY'RE TAKING THIS VERY SERIOUSLY.
I JUST WANTED TO SHARE THE OPENING SLIDES JUST TO SHOW WE'RE GOING TO BE HITTING NEAR-RECORD TEMPERATURES, BUT FOR MANY DAYS IN A ROW.
IF YOU GO TO THE NEXT SLIDE, JUST SOME BULLET POINTS ABOUT THAT, JUST WARNINGS ABOUT IT AND IT'S GOING TO GO THROUGH NEXT WEDNESDAY. NEXT SLIDE.
THIS SHOWS THE AREA AFFECTED, SO THE ENTIRE THAT.
MORE THAN HALF OF THE CENTRAL VALLEY IS AFFECTED BY THIS WEATHER PATTERN AND THE HIGH DESERT.
THE NEXT SLIDE IS REALLY THE 108, 112 UP IN THE HIGH DESERT.
SERIOUS AMOUNT OF TEMPERATURE CHANGE THERE.
THEN THE LAST SLIDE SHOWS THE HEAT MAP.
THIS IS CLEAR UP INTO THE FOOTHILLS, CLEAR UP INTO THE ISABELLA VALLEY.
FOR CONSTITUENTS, THOSE OF YOU THAT ARE INVOLVED WITH COOLING CENTERS OR THAT TYPE OF ACTIVITY THAT'S CERTAINLY THESE ARE GOING TO BE ACTIVATED OVER THE NEXT 7, 8, 9 DAYS.
>> YEAH. I WAS GOING TO ASK THEM AND WE DON'T HAVE A COOLING CENTER HERE. [OVERLAPPING] WE DON'T HAVE.
>> SHOULD WE REOPEN ONE SINCE THE COUNTY DID IT?
>> I'M NOT SURE WHETHER THE COURTHOUSE COULD ACT AS A COOLING CENTER [OVERLAPPING] OR NOT A LARGE CAPACITY THERE, BUT THAT'S SOMETHING WE CAN LOOK AT.
>> THESE AREN'T USUALLY OVERRUN, THEY GET 20, 30 PEOPLE.
>> MAYBE WE NEED TO REACH OUT TO THE RECREATION AND PARKS DISTRICT AS WELL.
[OVERLAPPING] MAYBE THEY CAN OPEN THAT AS WELL BECAUSE THIS IS DIRE SITUATION [OVERLAPPING]
>> YES, OF COURSE. PLEASE COME TO THE MICROPHONE.
MISS LARA, PLEASE COME TO THE MICROPHONE.
[NOISE] CERTAINLY MAY ANYTIME. [LAUGHTER]
>> HONORABLE MAYOR AND COUNCIL MEMBERS, I WOULD RECOMMEND WORKING WITH THE REC AND PARK OR THE SCHOOL DISTRICT.
TYPICALLY THESE FACILITIES YOU WANT THEM TO BE BACKED UP BY A COMMERCIAL GENERATOR BECAUSE WHEN THIS IS GOING ON, IT'S VERY LIKELY THAT YOU'LL HAVE A POWER OUTAGE.
MY RECOMMENDATION WOULD BE, LET'S TRY TO FIND A FACILITY THAT HAS A BACKUP GENERATOR SO IF POWER DOES GO OUT, THE AC CONTINUES. [LAUGHTER]
>> VERY GOOD POINT. DOES NOT HAVE THAT?
[OVERLAPPING] STAFF REACH OUT TO THOSE THAT WE KNOW THAT THEIR LOCAL SCHOOLS, THE RECREATIONS, AND PARKS DISTRICT, AND SEE IF THEY ARE ABLE TO PROVIDE SO [INAUDIBLE] THANK YOU.
>> I CAN'T DO IT, BUT IT'S DISREGARDING THE-
>> LAST TIME. A COUPLE OF MINUTES.
>> WE WILL ADJOURN THIS MEETING IN MEMORY OF WASCOW RESIDENTS, SALVADOR COVARRUBIAS, WHO SUFFER AN ACCIDENT [OVERLAPPING] AND PERISHED.
YOU SENT AS A LETTER REGARDING-
>> IS THERE UPDATES ON THAT AT ALL.
>> THANK YOU ALL. THIS MEETING IS ADJOURNED.
>> SHE DID. [LAUGHTER]
* This transcript was compiled from uncorrected Closed Captioning.