HomeMy Public PortalAbout2018.07.19 Special Meeting MINUTES
McCall City Council
Special Meeting
McCall Donnelly High School Commons
July 19,2018
Call to Order and Roll Call
Work Session
Public Comment
Adjournment
I CALL TO ORDER AND ROLL CALL
Mayor Aymon called the special meeting of the McCall City Council to order at 6:07 p.m.
Mayor Aymon, Council Member Giles, Council Member Nielsen, and Council Member
Sowers all answered roll call. Council Member Holmes was absent.
City staff members present were Anette Spickard, City Manager; Shay Tyler, Deputy Clerk; Erin
Greaves, Communications Manager;Nathan Stewart, Public Works Director
Also present were Greg Loscher of Bowen Collins&Associates and Eric Landsberg of SPF Water
Engineering
WORK SESSION
City of McCall Recommended Water Rate Changes Presentation and Public Discussion
Greg Loscher of Bowen Collins&Associates presented the Water Rate Changes presentation. The
presentation covered why the water rates changes are needed, how the rate changes will affect
customers, benefits the customers will see, and changes to the capitalization fee. He began by
explaining that during the last 20 years there has not been any rate increases and in fact, between
1997 and 2003, the rates were decreased because of an increase in sewer rates. This did not allow
for inflation and capital improvements,and to add to the mix,a loss of revenue of$406,000 brought
about by the sewer annexation last year to Payette Lakes Recreational Water and Sewer District.
Between the inflation of the last 20 years, needed improvement to aging infrastructure and
improvements outlined by the Water System Master Plan adopted in 2017, and the loss of sewer
revenue, a rate increase is necessary to meet the $1,038,000 short fall. The current volume charge
is significantly lower than the actual cost of providing water, and because the city charges the same
volume rate regardless of volume used,customers with lower water use subsidize those with higher
use.
To achieve an equitable and fair rate structure, the Council at the April 27, 2018 Council meeting
opted to switch to the use of a block rate structure. The current rate structure is a base rate with a
same volume rate ($0.71 per 1000 gallons) regardless of volume used. In changing to the block
rate structure, there is still a base rate with the amount of water used separated in blocks of usage
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July 19, 2018 Special Meeting
(0-5000 gallons, 5000-20,000 gallons, and over 20,000 gallons) each with its own fee structure.
Instead of the current $.71 per 1000/gal for everyone, the rate would go up each time the water
usage went up a level. So as to not subject citizens to a large rate adjustment all at once,the Council
chose at the April 27 meeting to spread the rate increase out over 3 years and to implement an
inflation increase yearly. Mr. Loscher showed where the City water rates are in comparison to
other towns with similar lake drawn water and to cities with wells systems. McCall rates fall in the
middle of the spectrum.
Next, Mr. Loscher presented capitalization charges. The State of Idaho views property owners as
shareholders in the water system and thus must pay for their part to be connected to the system.
He explained how the charges are calculated, taking into account depreciation and potential new
connections. The City's capitalization charges have not seen an increase in 20 years thus the fee is
approximately$1955 below what is recommended by the State. Since those fees also fall short, an
increase is advised. Lastly, he showed comparisons with other like cities and cities in the region.
Again, McCall fell in the middle range.
Customer benefits will include system reliability (stable funding allowing the water system to be
maintained), lower long-term costs, improved service (as old mains and services are replaced will
improve water pressure, and reduction in rust and breaks), improved emergency fire flows, and
greater customer control over costs based on need and preference. System improvements over next
10 years will include 47,500 linear feet of new water main replacing old pipe, 145 fire hydrants, a
new 1-million-gallon water storage tank, 1610 new water meters, and pump station upgrades. Eric
Landsberg of SPF Water Engineering addressed questions about the age of pipes, and power
pressure problem asked by Paul Beckner of 404 Allen Ave.
Council Member Giles spoke to the reasons why the Council had lowered the water rates 15 years
ago, and how that has affected the current dilemma with the shortfall and the need for an increase.
Mayor Aymon added that the necessity to raise the water rates is there, however unpleasant, and
by making these changes,will hopefully protect the future from any more large rate increases. Mr.
Loscher stated this is not an uncommon issue for many cities to have to make these adjustments
from time to time.
ADJOURNMENT
Without further business or questions, the presentation adjourned at 6:52 p.m.
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July 19, 2018 Special Meeting