Utility Board - Minutes Wednesday, September 20, 2017
Call To Order:
Chairman Kwan Wong called the regular meeting of the Utility Board to order at 7:01 p.m. in the Calkins Room at Mercer Island Community and Events Center, 8236 SE 24thSt, Mercer Island, WA.
Chairman Kwan Wong, Will Pokorny, Stephen Milton, Brian Thomas, Mary Grady were present. Tim O’Connell, Tom DeBoer and David Wisenteiner were absent.
City Staff: Francie Lake, Deputy Finance Director, Jason Kintner, Public Works Director, Patrick Yamashita City Engineer, and Asea Sandine, Recording Secretary were present.
Motion: Board Member Milton moved to approve the minutes from the May 9, 2017 meeting. Board Member Pokorny seconded the motion. The Board unanimously approved the minutes.
Motion: Board Member Milton moved to approve the minutes from the July 11, 2017 meeting. Board Member Thomas seconded the motion. The Board unanimously approved the minutes.
EMERGENCY MEDICAL SERVICES (EMS) RATE UPDATE
Lake presented the 2017 EMS Rate update and shared that the model is intended to adjust the rates charged to the various customer classes primarily based on the most recent two year call history and current customer account data. Lake noted that there will likely be a rate study completed in 2018. She advised staff proposes a rate increase of 2.93%.
Motion: Moved by Board Member Grady, seconded by Milton to recommend rate a 2.93% rate increase. The motion carried unanimously.
STORMWATER RATE UPDATE
Lake presented a high level overview of the existing stormwater system, including how rates are applied. Lake informed the board that the rate review is performed annually by staff. She shared that the 2017 beginning Stormwater Fund balance is $1.1 million better than forecasted, excluding budget carryovers from 2016 to 2017 of $400,854. Most of the $1.1 million was due to capital projects savings of $489,625 and two projects which were double budgeted for $421,624. Lake concluded that the rate review also reflects updates in the 2017-2018 planned Capital Improvement Projects. The Board discussed whether using ERU’s continues to be a reasonable application for rates. The Board inquired if more projects could be completed with the savings. Kintner shared that due to staffing capacity and unplanned projects such as: the landslide restoration project near 8410 WMW, Freeman Avenue, 81st Avenue Backyard Sewer project, Glenhome Water Main construction delays, Sound Transit project implementation, and the change in the SE 22nd Pl. Water main project schedule; it is not feasible to fit in additional projects. Lake presented one rate scenario that proposes a rate increase of 1.5% for 2018.
Motion: Moved by Board Member Thomas, seconded by Milton to recommend rate a 1.5% rate increase. The motion carried unanimously.
Kintner shared that an intern is reviewing the solid waste contract and comparing other jurisdictions. He added there needs to be emphasis on commercial as well as and multi–family recycling.