Sean C. Morgan
Of The New Era
Sweet Home city councilors last week approved adjustments to the city’s water rates, which will provide a decrease in water bills for approximately 71 percent of the city’s residents and most businesses.
Residents who use 600 cubic feet or more of water each month will see an increase. At 600 cubic feet, residents will pay an additional $1.25 per month, with a total utility bill of $118.95. Commercial customers who use 100 or 200 cubic feet and industrial-bulk users using 100 cubic feet will see lower bills.
Nearly three-fourths of Sweet Home residents use 500 cubic feet of water or less, while the average amount consumed is about 600 cubic feet per month. Working the math out on that suggests one-quarter of the users are significantly bigger consumers than the rest of the city.
Among businesses, including commercial and industrial – based on April data, prior to summer irrigation – most accounts use 200 cubic feet of water or less. Average consumption among commercial accounts is 1,400 cubic feet per month based on the April data. At the average, bills increase by about $17 per month.
Under the new rate structure, the base charge for water service decreases from $22.91 to $19.99. The residential commodity charge, which is imposed after the first 300 cubic feet for each additional 100 cubic feet of water usage, increases from $7.86 to $9.25.
For three-quarter-inch commercial, industrial and bulk services, which is the same as most residential customers, the base charge decreases from $22.91 to $19.91. For commercial customers, the commodity charge increases from $7.78 to $9.22 per 100 cubic feet. For industrial and bulk customers, the commodity charge increases from $7.54 to $9.14 per 100 cubic feet.
For residents using 500 cubic feet, total utility bills decerease from $100.06 to $99.92. At 400 cubic feet, bills decline from $82.42 to $80.89, and for 300 cubic feet or less, bills fall from $64.78 to $60.86.
Commercial customers using 200 cubic feet will see their bills decline from $82.34 to $80.86. For 100 cubic feet, bills decline from $99.90 to $99.80. At the average, 1,400 cubic feet, bills increase by about $17 per month to $327,86.
Industrial and bulk customers using 100 cubic feet or less will see a decrease in total utility bills of $170.12 to $168.80. The water portion of the utility bill decreases from $30.45 to $29.13.
The city projects $2.3 million in revenue from the new rates. It projects $2.5 million in water expenses in 2019-20. Neish said that existing reserves will cover the difference.
City Manager Ray Towry said the city is in talks with the School District to split the cost on drilling a well to water the south fields at the high school and Sankey Park.
School District officials earlier this year had protested a 45-percent increase in the commodity charge for bulk users last year.
Towry said that drilling a well for irrigation would be a win for the School District, the city and the citizens.
Present at the meeting were councilors Susan Coleman, Lisa Gourley, Mayor Greg Mahler, Diane Gerson, James Goble and Dave Trask. They voted unanimously. Several had raised concerns about rate increases, particularly for the School District, during a work session two weeks ago.
In other business, the council:
n Declined a proposal to increase storm water drainage fees from $1 to $3 per equivalent dwelling unit monthly. Most city utility customers have one equivalent dwelling unit and pay $1 per month to the storm drainage utility.
City staff had proposed the increase in order to start completing projects and to prepare a storm water master plan during fiscal 2020-21. The top project is to replace inconsistently sized culverts and grading in the drainage system in the area of 38th and Long streets, at a cost of $65,000.
The revenue generated by the fee would benefit existing infrastructure as opposed to new construction.
The city has charged $1 per month since it created the utility in 2006, said City Manager Ray Towry. At the time, a consultant had recommended a charge of $4 per month.
Under that rate structure, revenue is less than the staffing expenses required to operate a storm water system, said Neish and Public Works Director Greg Springman in a memo. In 2018-19, the city received about $63,000 in revenue.
With no resources to replenish total current storm water fund balances of about $225,000, Neish and Springman said, “this leaves the storm water system in a danagerous position moving forward and continues the application of Band-Aids that address short-term needs.”
A master plan is required as part of the Total Maximum Daily Load Implementation Plan the council approved in March, they said. Without it, the city would be out of compliance with Department of Environmental Quality regulations, which require a TMDL plan update every four years, including a master plan.
The city is currently designated a small city, which provides some relief from regulations affecting larger cities, Neish and Springman said. Once the city reaches a population of 10,000, “additional regulations related to storm water will be applied to Sweet Home, and compliance is not optional.”
“I understand what we’re trying to do,” Mahler said. “I’m struggling with the aggressive increase.”
“I’m not against a raise,” Trask said. “I just don’t know if I’m into a $2 raise. I’d be happier with a $1 raise.”
“I’m not for it,” Goble said noting that the council just approved a decrease in water rates for 71 percent of residents, and saying he cannot do something “super cool” like that and then erase it with a storm water increase.
It’s like giving with one hand and taking with another, Gerson said.
Gourley noted that not everyone is getting a decrease in water rates.
Coleman said she wasn’t in favor of the increase.
“We’ll internally make some adjustments to our operations and our budget,” Towry said.
n Heard an update from Springman about alternatives to the city’s current contract with Jacobs engineering to operate the water and wastewater treatment plants.
Springman requested additional time before presenting a more formal report back to the council.
On June 25, the council directed staff to explore and present options for management of the treatment plants.
Staff is seeking quotes from another facility management firm, Springman told the council. It is investigating options to bring operational functions in house, and it has requested that Jacobs renegotiate their base bid in the contract.
City staff met with Murraysmith, the city’s engineering firm, twice and requested Murraysmith to develop a budget for operation of both facilities if they were brought back under city control, Springman said. Murraysmith will provide estimates for all aspects of operations, personnel and maintenance.
Murraysmith is the city’s engineer of record and it is designing the $28.2 million Wastewater Treatment Plant upgrade project.
The city also met with Veolia, a Jacobs competitor, Springman said. Veolia toured the treatment plants and will provide a quote to operate both facilities.
Staff also have met with Jacobs management to discuss treatment plant conditions, Jacobs staffing and outstanding operations and maintenance, Springman said.
Springman said he will be able to bring more accurate information to the council by Aug. 13.
n Approved a change of ownership on a liquor license for 2405 Main St., formerly Circle K, which was purchased by 7-Elevent.
n Approved a road closure on Mimosa Circle for Neighborhood Watch National Night Out Against Crime for Aug. 6 to allow a street gathering of residents.
n Hired Murraysmith as the city’s engineer of record.
Five firms offered proposals, including Civil West Engineering Services of Albany; Westech Engineering, Inc., of Salem; Keller Associates of Salem; The Dyer Partnership Engineers and Planners, Inc., of Lebanon; and Murraysmith of Portland.
Murraysmith is creating final design plans for the city’s $28.2 million Wastewater Treatment Plant upgrade project. It was ranked first by a four-member committee of city staffers.
Murraysmith will function as the city’s engineer on a one-year contract, with an option to extend it another three years.
n Approved a public address permit for Thursday through Sunday this week for Downtown Lounge, which will play amplified music outside during Jamboree weekend.
Councilors expressed concerns about the effects of the noise on Nandina Street residents, who have complained about the music in the past. The council approved the permit until midnight Thursday and Sunday and 1:30 a.m. Friday and Saturday (Saturday and Sunday morning).
Trask voted no, stating he thought the music should be shut off by midnight every night.