UTILITY
FEES REVIEW COMMITTEE
CITY HALL, 100 LOCKVILLE ROAD
MONDAY, NOVEMBER 21, 2005
6:30 P.M.
1. ROLL CALL. Mr. Walburn called the meeting to order at 6:30 P.M., with roll call as follows: Mr. Hackworth, Mr. Walburn, Mr. Sauer, and Mr. Snyder were present. Mr. Wright arrived at 6:35 P.M.. Others present were: Judy Gilleland, Lynda Yartin, Ed Drobina, Bob Cramer, and others.
2. APPROVAL OF MINUTES of October 17, 2005, Regular Meeting. Mr. Hackworth moved to approve; Mr. Sauer seconded the motion. Mr. Snyder, Mr. Sauer, Mr. Walburn, and Mr. Hackworth voted “Aye.” Motion carried, 4-0.
3. SCHEDULED MATTERS:
A. Review and Discussion regarding water and sewer capacity fees. Mr. Walburn stated he has been reviewing the fees that go into effect on January 1st, and he would like to see an additional five percent increase on those fees. Mr. Walburn stated that increase would still put our fees between Fairfield County, Canal Winchester, and Pataskala. Mr. Hackworth clarified that Mr. Walburn was referring to water capacity fees. Mr. Hackworth clarified for example our current capacity fee for a ¾ inch water line is $3,025.14, and in January, with the three percent increase, it will be $3,115.89. Ms Gilleland stated Mr. Drobina had prepared a chart for the Committee showing all of the fees at the current rate and at the January 2006 rate, which includes the three percent increase. She stated the chart also includes the amount that the Circuit Rider study indicated we should have. Mr. Walburn stated his recommendation was to add a five percent increase after the three percent increase in January. He stated further, as he understood it, the three percent increase is an automatic increase, whereas, Council would have to pass legislation for the additional five percent. Ms Gilleland stated that was correct. Mr. Hackworth stated a recommendation from this Committee would be forwarded to Service Committee of Council, and that Committee would forward it to Council. Mr. Hackworth further stated if this is the recommendation from this Committee this evening, it could be on the Service Committee meeting agenda in December. Mr. Hackworth inquired if the water and sewer capacity fees would be considered on the same piece of legislation, and Ms Gilleland clarified Mr. Walburn’s recommendation was for the additional five percent to apply to both water and sewer capacity fees, and could be on one ordinance. Mr. Hackworth stated as he understood it, the additional five percent increase was a one time increase, whereas, the three percent is an automatic annual increase each January. Ms Gilleland stated that Council passed legislation many years ago. Mr. Walburn stated he felt this Committee should review the rates each year and determine if any other increases would be necessary. Mr. Sauer questioned how this would deter economic growth in terms of residential. Ms Gilleland stated she did not feel this would deter commercial growth as we do have the ability to negotiate all kinds of things that would be approved by Council. Mr. Hackworth stated he still felt we would be competitive with Fairfield County, Pataskala, etc., and he did not feel we were so far out of line that it would deter any economic development. Mr. Walburn inquired how many acres are in the City that could be developed as industrial, and Mr. Hackworth stated there were not very many. Mr. Sauer stated his concern is that we need to stay attractive for commercial development.
Mr. Hackworth stated with regard to sewer capacity fees, if we put the additional five percent on that we would still be competitive and yet not as high as recommended by the Circuit Rider report. He stated we would be slightly higher than Fairfield County, but not out of line. Mr. Walburn stated he would still like to add the five percent on the sewer capacity fee as well.
Mr. Hackworth stated he would like to know Mr. Cramer’s opinion on this increase as he is our financial advisor. Mr. Cramer stated he did not feel the additional five percent adjustment would put the City at a competitive disadvantage. He stated even with that increase, you would still be competitive within the region. Mr. Hackworth stated if we put this additional five percent on, then this Committee should begin to review approximately half way through the year to see if any additional increase would be necessary for the next year. Mr. Wright clarified this would not affect current individual homeowners, but would only apply to a new home being built.
Mr. Walburn stated in the future he would like this Committee to look into some type of relief or discount on user fees for senior citizens who are on fixed incomes.
Mr. Sauer moved to recommend a five percent increase on water and sewer capacity fees in addition to the automatic three percent increase that will be effective on January 1, 2006; Mr. Snyder seconded the motion. Roll call was taken with Mr. Walburn, Mr. Snyder, Mr. Hackworth, Mr. Wright, and Mr. Sauer voting “Yea.” Motion passed, 5-0.
Mr. Walburn stated the draft legislation for this increase would be provided to Service Committee for their action at their next meeting.
4. OTHER BUSINESS: Ms Gilleland stated we would be putting together a five-year rate structure for the user fees for this Committee to review. Mr. Sauer clarified that we have approximately 4,600 users for water, and sewer is less than that number. Ms Gilleland stated we could have that information for the Committee at their next meeting.
Mr. Hackworth stated as we are not ready to begin reviewing the user fees, and with the holidays coming up, he wondered if there would be an agenda for a December meeting. The Committee members determined that a meeting would not be necessary in December, and the regular January meeting would be on January 16th, which is a holiday, so the next regular meeting for this Committee would be scheduled for January 23, 2006, at 6:30 P.M.
Mr. Wright inquired if we charge a connect and disconnect fee when service is stopped or started, and Ms Gilleland stated she felt that was a great idea to look into. Mr. Walburn stated he agreed that would be something that we should look into as many other communities do it.
Ms Gilleland stated she hoped we would have the five-year rate structure for the Committee to review at their January meeting. Mr. Walburn stated he would like to see something regarding our expenses as well, such as it costs us $.10 per gallon to produce, $.15 per gallon in Columbus, etc. Mr. Drobina stated he did not have anything like that, and Ms Gilleland stated that would be something to look into. Mr. Cramer stated the rate per thousand gallons implies we are at least breaking even. Mr. Hackworth stated this Committee could start with the Circuit Rider Report and establish some rates. Mr. Hackworth stated he would like to have something showing the trend of our water and sewer departments over the past five years showing the operating expenses and revenues. He stated this would be useful when considering an annual increase like we have with the capacity fees.
4. ADJOURNMENT: There being nothing further, Mr. Hackworth moved to adjourn; Mr. Sauer seconded the motion. Mr. Hackworth, Mr. Wright, Mr. Walburn, Mr. Snyder, and Mr. Sauer voted “Aye.” Motion carried, 5-0. The meeting adjourned at 7:32 P.M., November 21, 2005.
RESPECTFULLY SUBMITTED:
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Lynda D. Yartin, Municipal Clerk