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HomeMy WebLinkAboutTB Study Session 2015-03-10 Town of Estes Park, Larimer County, Colorado March 10, 2015 Minutes of a Study Session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in Rooms 202/203 in said Town of Estes Park on the 10th day of March, 2015. Board: Mayor Pinkham, Mayor Pro Tem Koenig, Trustees Ericson, Holcomb, Nelson, Norris and Phipps Attending: All Also Attending: Town Attorney White, Finance Officer McFarland and Town Clerk Williamson Absent: Town Administrator Lancaster Mayor Pinkham called the meeting to order at 4:00 p.m. TRUSTEE COMMENTS & QUESTIONS. Trustee Norris congratulated the Police department on their annual awards recognition banquet. Friends of the Estes Valley Community Center held a meeting where Executive Director Rorabaugh provided the same presentation given to the Town Board on February 24, 2015. Dr. Marie Richardson/School Board President stated concern on the scaled down center and limited size of facilities for the youth. The School Board would request EVRPD be aggressive with the fundraising and add an additional gym. Mayor Pinkham suggested the Board forward questions related to packet material to Town Administrator Lancaster to discuss with the staff and bring forward additional information to the full Board at the study session. This would ensure all Board members would receive the same information. Mayor Pinkham reminded the Board to utilize the Town email when conducting Town business. Use of a personal email account does not protect a Board member from turning over emails in an open records request. FUTURE STUDY SESSION AGENDA ITEMS. The Executive Session discussion scheduled on March 24th would be moved to the April 14th study session. REVIEW DRAFT POLICY ON PUBLIC FORUMS. The draft policy would provide staff with direction for holding public outreach through public meetings and/or forums on public issues. It would ensure staff and the Board are in agreement on the need for a forum; avoid staff holding policy discussions with the public without Board awareness; and would clarify what constitutes a public forum necessitating Board approval. Trustee Norris requested the policy allow the Town Administrator to poll the Board and receive approval to hold a public forum. Trustee Nelson supports the policy as long as it does not limit staff on getting public input on a topic. The policy would be amended and considered at the next Town Board meeting on March 24, 2015. PROPOSED WATER RATES. Utilities Director Bergsten and Cil Pierce/HDR Senior Project Manager & Financial Analyst provided a review of the water rate study. An increase in rates is due to a .5% growth in sales, an increase in O&M expenditures of 3%, and a need to add staffing to Town Board Study Session – March 10, 2015 – Page 2 complete pipe replacement projects, maintenance and regulatory compliance. The rate study focused on water line replacement program and did not address the deferred cost for treatment projects of approximately $11 million. The rate adjustments would build capacity to fund projects, finance larger projects in the next four to five years, and ensure the fund grows at an efficient rate to address maintenance and provide high quality and reliable services. With current water rates the department would not have adequate funds to fully fund operating and capital expenses as projected, and could not meet debit service ratios for a future loan. The Water financial plan estimates the rate adjustments needed to meet the funding outlined in the study would be 9.9% for each year 2015-2017 and 8% for 2018. Three rate options were reviewed including: Option 1 – Implementing AWWA meter equivalencies over a three year period; Option 2 – Maintain existing rate structure and apply the necessary rate adjustments; and Option 3 – Option 1 but levelized across the years. Option 3 would provide a transition toward cost of service results over the three year rate setting period through meter equivalency levelizing revenue adjustments each year; increases meter (fixed) charge revenue from large commercial meter customers; adding rate schedule for future meters 6” and larger; and increase revenue stability. A customer’s individual bill would increase based on their customer class, size of the service meter and the amount of water used. The fixed charges would be covered by the fixed cost and those that do not use water would see a higher percentage cost as they do not have a volumetric cost to dilute the fixed cost increases. Those with larger meters/larger service lines would see a larger increase such as the Park R-3 School District with an approximate increase of 34% in 2015, 28% in 2016 and 22% in 2017. The schools do not operate year around which means there fixed costs are not diluted by the volumetric usage during the summer months. The average residential customer bill would increase $3.75/month each year, commercial bill would increase by $6.40/month per year, pump flow customer class would increase $4.05, bulk water increase by $83.90 per year, and low-income residential monthly increase of $3.10 per year. Staff would present the water rate study as a report at the March 24, 2015 Town Board meeting, possible adoption of the rates at the April 28, 2015 Town Board meeting, and implementation of the new rates on June 1, 2015. There being no further business, Mayor Pinkham adjourned the meeting at 6:40 p.m. Jackie Williamson, Town Clerk