Council OKs water rates increase

Sean C. Morgan

The Sweet Home City Council last week approved an across-the-board increase in water rates that will help fund the installation of new pumps dedicated to reducing the impact of Water Treatment Plant operations on distribution pipes.

The council approved the increase during its regular meeting, held Tuesday, April 14. Some councilors attended physically, while others attended using Microsoft Teams. Public attendance was limited to six persons, while the public also was able to watch a live stream of the meeting and comment via Teams.

City staff did not propose increasing wastewater or storm drainage rates.

City Manager Ray Towry told The New Era that the increase is not set in stone and the council is likely to revisit the rates prior to the beginning of the fiscal year. Approving the increase now allows the city to budget for projects, but the council may choose to hold off on some of the projects allowing it to reduce the rate increase before it takes effect on July 1.

The approved increase will increase bills for 44 percent of residential customers, those using 300 cubic feet or less, by $1.71 per month to $21.70, which is less than two years ago.

For those using 400 cubic feet per month,14.6 percent of customers, bills will increase by $3.77 to $31.98 per month. For users of 600 cubic feet, which are about 9 percent of customers, water bills will increase by $4.80 to $52.54 per month.

The increase has two components:

The base charge increases from $19.99 to $21.70 for three-quarter-inch connections. Residential customers receive their first 300 cubic feet of water, 2,244 gallons, for the base charge. Commercial, industrial and bulk customers do not.

The second component, the commodity charge increases from $9.22 per 100 cubic feet to $10.28 per 100 cubic feet after the first 300 cubic feet. A bill can be calculated by multiplying the additional number of 100 cubic feet by $10.28 and adding the base charge, $21.70. (For example, for 500 cubic feet of usage, multiply 2 by $10.29 and add $21.70, a total of $42.28.)

Commercial customers will see an increase in the commodity charge from $9.22 per 100 cubic feet to $10.22 per 100 cubic feet. Bulk customers will see an increase from $9.14 per 100 cubic feet to $10.07 per 100 cubic feet. Customers in both categories pay the commodity charge for all water used.

Total residential bills, including sewer and storm drainage bills, will increase from $61.86 for those using 300 cubic feet or less. At 400 cubic feet, total bills will increase from $80.89 to $83.63. The majority, some 59 percent, of customers use 400 cubic feet or less.

At 600 cubic feet, the average, total bills increase from $118.95 per month to $123.75 per month. About 81 percent of customers use 600 cubic feet or less.

Among commercial customers, 46.5 percent use 100 cubic feet or less and will see their total bills increase from $80.86 per month to $83.57 per month.

At the high end of commercial usage, the 24 customers that use 2,300 cubic feet monthly will see their bills increase from $469.52 to $494.23.

For bulk users, bills will increase about 10 percent across the board. The monthly bill for the connection that uses the most water, a Sweet Home School District athletic field, for instance, will increase from $56,687.99 to $62,455.70.

Finance Director Brandon Neish is projecting $2.4 million in expenses for the next fiscal year, 2020-21, which begins July 1. He estimated that current utility rates would raise $2.3 million.

The city must adjust its rate schedule to generate additional revenue or reduce projected expenses, Neish said. “Complicating matters is a decrease in year-over-year overall consumption, which requires additional rate increases to make up the difference or additional expenditure reductions.”

This is the second year that consumption has decreased, Neish said, and it’s likely the result of increased utility rates, specifically wastewater.

The city will use the proceeds from the sale of its 9th Avenue property, the former site of Public Works headquarters and the Water Treatment Plant, which totaled about $207,000, to pay down a debt owed by the General Fund to the water capital fund, Towry told the council. That would free up money in the water fund to help pay for proposed projects and limit the increase needed.

Voting for the increase were Cortney Nash, Mayor Greg Mahler, Diane Gerson and Dave Trask. Voting no on the increase were Susan Coleman, Lisa Gourley and James Goble.

Possible reduction

Although the council approved the increase, Towry expects councilors to revisit and consider reducing the increase.

“I think this council has demonstrated their desire to be responsive to the needs of the community,” he said. “That being said, councilors have been regularly engaging me in the past weeks about what’s going on.”

Approving the rate increase will help city staff finalize a budget this month for the budget committee’s and council’s review, Towry said. The council can revisit the resolution and take action based on how the economy recovers in the coming months from the economic impact of COVID-19, allowing the city to move forward with projects or to hold off on projects.

“This rate is a budget tool to get us through the budget process,” Towry said. “What we’re trying to do is take the path that leaves us the most options, to be agile and nimble.”

The approval of the increase allows the city to take advantage of dips in the market, he said, noting that it’s easier to budget now rather than use the supplemental budgeting process later, which requires public hearings.

“One thing we’re watching very closely is the payment rate,” Towry said, the rate of those who are not making payments on their utility bills.

Right now, the city is working with customers who cannot pay their bills, he said.

While large parts of the economy are shut down and with unemployment spiking, the city is not imposing late fees and interest, but Towry said customers need to call and work with the city to get that help.

Based on this information, the councilors may feel that an increase isn’t right at this time, he said. As a result, the city may cut planned capital projects.

“This is just the council wanting to do the right things for the community, and nobody knows what that is right now,” Towry said. Their 4-3 vote demonstrates they’re cognizant of the impact of the rates on the community.

“They’re taking a long-term approach in everything they do right now,” he said, and he strongly suspects that he will be told to scale back the rate increase to allow the top capital priority to move forward.

Capital projects

The city is planning to add a pump to mitigate the effects of the backwash process. Public Works Director Greg Springman told the council that this is the top priority for the water system.

The backwash process runs the Water Treatment Plant in reverse to clean the filters.

Also on tap for 2020-21 are new variable-drive pumps and replacement of a leaky waterline on the south end of 9th Avenue.

The backwash pump and VRD pumps are specifically meant to reduce a “hammer” effect on the city’s waterlines.

When the plant is in the backwash process, it cannot continue producing water, Springman told The New Era. When water production is restored after the backwash process, it sends a pressure shock, the “hammer” effect, back through the system.

The new pump will allow the city to clean one out of its three treatment tanks while continuing production through the other tanks.

The VRD pumps will help prevent shocks in the system when the plant goes online to replace water in the reservoirs.

Springman said that as the plant produces water, customers use it while the excess fills the reservoirs. When the reservoirs are full, the plant shuts down production and customers use the stored water, which is pressurized by gravity.

As the reservoirs are depleted, the plant begins producing water again, Springman said. The pumps pressurize the system at their maximum rate. The VRD pumps will allow the plant to gradually increase the pressure, rather than sending a large pressure shock through the system.

Every gallon of water weighs 8.34 pounds, Springman said. “Then you put velocity on it and move it. Think about that.”

The backwash pump is projected to cost about $375,000. The VFD pumps will cost about $195,000, and the replacement of 9th Avenue’s 2-inch waterlines will cost about $250,000.

In other business, the council:

– Appointed Nanci Curtis to the Park and Tree Commission.

– Appointed Candi Unger to the Planning Commission.

– Adopted new temporary personnel policies designed to discourage the spread of COVID-19 among city staff and the public while continuing city operations. The policies address the use of sick leave, alternate work schedules, social distancing and identifying essential staff.

– Continued a public hearing until its April 28 meeting on zoning ordinance amendments covering flood hazard area regulations.

– Received a draft proposal for adjusting the city’s fee schedule. Among the changes, if approved, the city will begin charging those who wish to regularly receive hard-copy City Council meeting packets by mail. An annual subscription is $240 for the packet and $24 for the agenda. All public meeting agendas will cost $36 annually. Both are available electronically at the city’s website.

The reinstallation of water meters at the request of the user increases from $125 to $200.

– Approved a grant application to the U.S. Department of Agriculture for $21,000 to help pay for a new canine patrol vehicle, seven ballistic vest carriers and seven ballistic shields. The city would be required to provide a $39,000 match.

The department’s canine patrol vehicle was donated by Deschutes County, said Police Chief Jeff Lynn. The 2013 Chevrolet Tahoe had 90,000 miles at the time. It is now at 126,000 miles and has had an increase in maintenance expenses.

The new ballistic carriers and shields will be placed in patrol vehicles, Lynn said, providing officers with an additional level of protection from large-caliber firearms.

– Held the third reading and approved an ordinance revision that rezones the area between Tamarack Street and Yucca Street and between 22nd Avenue and 18th Avenue from low-density residential to medium-density residential. Nash voted no.

– Held the third reading and approved an ordinance resvision that rezones a 3.65-acre property and a .75-acre property located along Wiley Creek north of Highway 20 and owned by Salmon River Parters LLC from planned recreation commercial to low-density residential. The property had been rezoned to planned recreation commercial from low-density residential in 1999.

– Held the second reading of an ordinance that will regulate large events taking place in public rights-of-way.

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