CITY COMMISSION AGENDA ITEM

Department:	Municipal Services		Commission Meeting Date: August 7, 2018
Staff Contact:	Beth Krishtalka
Recommendations/Options/Action Requested:
Adopt on first reading, Ordinance No. 9521, amending identified City Code Sections to establishing 2019 water and sewer rates, and reflect the applicable low-income guidelines for low-income, elderly person eligibility for reduced water and sewer charges.
Executive Summary:		Ordinance No. 9521 amends identified City Code Sections to establish 2019 water and sewer rates. Code Section 19-318 is concurrently amended to reflect the applicable low-income guidelines (110% of the Federal poverty level) for low-income, elderly person eligibility for reduced water and sewer charges. A 2017 – 2023 forecast of revenues and expenditures for the Water and Wastewater Fund is included in the 2019 Budget, page 65.  The proposed 2019 rates provide a 7.8% overall increase in water and sewer revenues, covering operational costs, debt payments, and other cost of service needs. Rates support the 2019 – 2023 Capital Improvement Program, including: · Infrastructure projects to sustain system integrity and address deferred maintenance. · Relocations of utility infrastructure as needed for various road projects. · Regulatory mandates and commitments, including inflow and infiltration removal and bio-nutrient removal. · System and technology enhancements for the MSO to improve efficiency, conservation, and customer service, including Advanced Metering Infrastructure (AMI), work order management, and citizen engagement. · AMI deliverables include tools for consumers to manage personal consumption, increased accuracy and details regarding metered water use, and systemwide data regarding water quantity and quality as it moves throughout the citywide distribution system (see AMI Assessment Benefits). Project benefits are expected to yield a payback timeline of 12 years or less. · Enterprise funding for the MSO combined field operations campus . Background Following detailed presentations on November 8, 2016 and June 13, 2017, City Commission directed staff to implement a new inclining block rate structure for residential customers and a new irrigation class. The individual inclining block structure is scheduled for implementation as part of the 2020 rates, subject to completion of the new billing system on or about October 2019. The new irrigation class was incorporated into the approved 2018 water rates.
Strategic Plan Critical Success Factor:		Safe, Health and Welcoming Neighborhoods Innovative Infrastructure and Asset Management Sound Fiscal Stewardship Core Services
Fiscal Impact (Amount/Source):		The fiscal impact to the City will be increases in revenue commensurate with appropriate costs of service based on customer usage and applicable rate model factors.
Attachments:		Ordinance No. 9521

Reviewed By: (for CMO use only)

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