SPECIAL CITY
COUNCIL MEETING MINUTES
APRIL 17, 2007
The
meeting was called to order by President Pleasant at 7:00 p.m.
MEMBERS
PRESENT: Mr. Marshall, Ms. Sellers, Mr. Fogt, Mr. Pleasant, Mr. Burke, Mr. Reams, Mr. Pleasant
OTHERS
PRESENT: Mayor Kruse, Director of
Administration House, Finance Director Morehart, Law
Director Aslaner, Clerk Patterson
REPORTERS
PRESENT: Ryan Horns, Journal Tribune
ORDINANCES
The
ordinance “TO AMEND SECTION 931 – WATER RATES- OF THE CODIFIED ORDINANCES OF
THE CITY OF MARYSVILLE” was presented for third reading, title only. Mr. Burke explained that this is Council’s
amendment, not an amendment of individuals.
Every Council member has worked diligently on finding a way to relieve
the burden from the residents and fund the pieces of infrastructure that need
to be funded. Marysville has always had
a water rate structure that has moved forward in unison across all tiers. A rate increase of 6% at the bottom was a
rate increase of 6% at the top through and through. This amendment is a little different in that
those tiers are separated out in terms of the percentage that is charged per
tier, based on usage. An additional tier
has been added that captures some additional revenue from some higher-end users,
potentially of much larger homes such as some of the potential new development
in the southern part of the County. The first two years, the base rate or minimum billing increased by
2%. The balance moves at 5%, 6%
and 6% up to 9% at the high end. This
occurs because after doing comparison studies with other cities, the high-end
usage was potentially slightly deficient from what it should be. When it comes to funding the entire project,
we needed to look at who uses the water, how is that going to affect the City’s
future and how do we fund future projects.
It was found that the majority of the revenue is generated by the
residents and the vast amount of water that is produced is used by
industry. He added that is a positive
thing. Industry brings a lot of beneficial things to this City besides water,
such as taxes, jobs and value of life.
This scale has tiered this out over ten years and allows as minimal as
possible impact on the residents, as minimal as possible but fair to our larger
end consumers, while allowing the reservoir and the treatment plant to get
their due justice so that our system can continue to function and grow; we can
continue to be service providers in the southern part of this county and seek
additional sources of funding, either through grants or otherwise or through
users and tap fees as our system continues to grow.
Mr.
Burke explained one of the issues they had to deal with is the truck line sewer
and the fact that the contract wouldn’t be awarded. It was a $56M estimate that came in at $53M. If that project is not let,
it has to be rebid and it is feared that the cost
would not go down if rebid. The proposed amendment will allow that
project to continue, will put the City’s water and sewer system in tandem in
terms of the capacity of water we can produce and the volume of sewage we can
handle, and Marysville will remain a major player in economic development in
this county. We can use that to our
advantage on OUR schedule, instead of an EPA mandate, when we decide to move
forward on these projects.
Mr.
Reams said he and Mr. Burke met with the Chamber this afternoon to explain the
need for the water utility improvements, as well as an explanation of the rate
structure. A lot of good questions and
discussion took place at the meeting.
Mr.
Dave Thorbahn addressed Council. He is the General Manager at Select Sires and
President of the Union County Chamber of Commerce. He had the opportunity to hear the proposal
at the Chamber this afternoon and examine the rate increases. The Chamber feels it’s very important that
the reservoir and the new treatment plant move forward as scheduled to ensure
the growth and development of Marysville and
Mr.
Dick Noland addressed Council. He
supports the current rate ordinance. He
appreciates the work that Mr. Reams and Mr. Burke have done because they are
bordering on a cost of service study. He
also supports continuation of examining it and continuation of some of the work
over the next year and a half.
Mr.
Baker addressed Council. He commended
Council for the interaction they have shown over the last six months,
especially the recent thinking outside the box.
It’s a real tribute to the community.
One of the most important aspects of the activities of the last couple of
weeks has been the resolution activity that sets the basis for a more
traditional business plan on the water operations. Along with that, reduced cost of operation
for the Water Division should be a primary goal of future activities in the
water enterprise. Those proceeds from
that operating reduction should be used to pay down the debt.
Ms.
Esther Carmany addressed Council. 1) She
wants everyone responsible to let the water utility suggest their own budget to
satisfy the plan that the banks require to negotiate loans. 2) Would like someone to monitor the water
utility so that they cut their operational expenses today and in the
future. Paying down the debt is very
important to her. 10%
good, 20% red flag, 30% not so good.
Someone has to monitor that. 3)
Feels it’s wise to insist that any annexation agreement includes
connection fees to pay for the costs that are incurred. 4)
Use all caution to monitor the debt and to pay it down as soon as
possible.
Ms.
Sellers reported that today the Mayor vetoed her Resolution, which was passed
unanimously at the last meeting, where we would, as a City, move forward on
1)
developing a business plan for the water utility, something that even Malcolm
Pirnie has said is not included in the rate study, which is formally called the
Water Master Plan. That would require
Council to focus on rate reduction, paying down the debt and cost savings within
the water utility. The other piece of
the Resolution is a Land Use Plan, which plans for smart and intelligent
growth. Land Use Planning is the most
critical element of all of that. We, as
a City, need to move forward on that, while encouraging cooperation regionally
with the other entities within the jurisdiction. After speaking with fellow Council Members,
she stated that she was confident that they will override the veto on Thursday,
April 26th. She made it clear
that her YES vote is based on her confidence that there will be an override of
the veto.
Mr.
Burke stated this does not end this issue.
There is still work to be done.
When we look at the growth, how we’re going to manage it, current debt
load, all these issues need to be addressed. There is a learning curve; you just can’t jump
in here and start talking utilities.
That painful experience should not have to be repeated with every new
council member that sits here. This
information, collectively, needs to be passed on in some form. He agreed with Ms. Sellers; we need shorten this
so that decisions are intelligently made and, there is some kind of legacy here
that ultimately ends this insanity.
Mr.
Gore stated the proposed Section II amendment doesn’t quite say what he wanted
it to, but he can live with it. He wants
it opened-ended so that whenever we can address any type of additional funding,
the rates will be reviewed. The
amendment says two years, but he believes it can probably be dealt with at that
time. Secondly, he thanked all Council
Members for all their work and efforts in this project. This is truly a project whether you agreed
with the position a council member took or not, that all seven members had time
invested in research, negotiations and discussions. Even though all this may not have been in
their job description, and it was unfortunate it had to come to that, he feels
the citizens of this community have been better served because of that.
Thirdly,
Mr. Gore talked to someone at EPA today.
Within the next two to four weeks, they will be releasing their
list. The individual from EPA explained
to him there is above the line and below the line. Above the line will be anyone that has
submitted a qualifying request, will be able to draw on their funds. If anyone above the line does not draw or
borrow the money, then the folks below the line that have qualifying
applications will then be given an opportunity.
He feels our proposal to them is pretty good. It is another option to look at, even though
there’s only $12M available and it’s only for 20 years at 3.25%. We need to look at this for possibly part of
a project instead of doing everything on bonds at 4.5%. Mr. Gore made it clear that the frustration
and disappointment he had over the last few months is, you elect seven people
in the City to represent you, three At-Large and four
for the Wards. “You elect them to voice
what they think is your opinion and represent you, and it’s very saddening to
me that that took place, and we were criticized for doing that by some folks in
some circles and that’s too bad. I think hopefully you see the democracy is working
in this City and that we’re working together, and the
government is working for you.” His yes
vote tonight will be because he has the confidence that it will be monitored
and that we will not complete this four-year rate increase.
Mr.
Fogt echoed Ms. Carmany’s
sentiments about reducing expenses at the Water Plant. That needs to be looked at. We need high efficiency at the Water
Plant. He asked Council to take a serious look at the sewer
and water items in the budget and cut out things that don’t have to be
spent. That savings should be used to
pay down the debt.
Mr.
Marshall stated he was gratified to see this come to a conclusion. Feels this is a pretty successful
effort. The most important thing is that
no one here likes to increase costs to the citizens, but on the other hand, by
passing this ordinance tonight, we secure the future of Marysville and its
prosperity, not only for us, but for generations to come. We will continue to experience growth whether
we like it or not.
Mr.
Gore moved to pass the legislation and the question put, stood:
Mr.
Marshall YES Ms. Sellers
YES Mr. Fogt YES
Mr. Pleasant YES Mr. Burke
YES Mr. Reams YES
Mr. Gore YES
Ordinance
22-07 passed.
Mr.
Pleasant thanked Mr. Noland, Ms. Carmany and Mr.
Baker for their time and effort.
ADJOURNMENT: There being no further business to come
before Council, the meeting adjourned at 7:22 p.m.