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Tuesday, October 21, 2003

Call To Order:

Chairman Ron Kaufman called the meeting to order at 7:02 PM in the Farside Room of City Hall, 9611 SE 36th St., Mercer Island, WA.



In Attendance:

Ron Kaufman, Chairman, John Ewald, Vice Chairman, Benjamin Levie, Bob Burd, Robert Sexton, David Landes



Council Liaison:

El Jahncke



Staff Present:

Joanne Sylvis, Francie Lake, Suzanne Riddell, Doug Sternback, Patrick Yamashita, Anne Tonella-Howe




The Minutes of the June 24, 2003 were approved with the following changes.

1.       Page 1: Extending the agreement term. Mr. Hirsch stated King County needs to extend the contracts to 50 years by 20 years to a termination date of 2056 in order to maintain favorable long-term bond financing arrangements.

2.       Page 2: Amending the rate provision. The proposed amendment would give the County Executive authority to declare an “emergency” pending approval of by the County Council. 



Regular Business:


Item 1   Sewer Rate Analysis

Financial Operations Manager Francie Lake presented the Sewer Rate Analysis.  Ms. Lake explained the need to increase the Sewer rate in order to finance the Sewer Lake Line project.  Ms. Lake started out with a general overview on how the sewer rate is implemented (Exhibit A) and went on to introduce four rate increases or special assessment scenarios (Exhibit B) for the Utility Board’s consideration. The Utility Board directed staff to make changes to each scenario by increasing total Lake Line construction costs from $ 10 million to $ 13 million and maintain original assumptions used for Maintenance and Operations and Capital Reinvestment.  These revisions will be sent out to the Utility Board for further discussion at the November 4TH Utility Board Meeting. 


Item 2   Water Rates

Finance Director Joanne Sylvis reviewed revenues and expenses for the Water Utility from the years 2000 through 2003 and forecasts for 2004 (Exhibit 1) and asked for direction for a water rate increase for 2004.  The Utility Board directed staff to prepare an analysis for water rate increases starting with a 3% increase and increasing from there to identify a rate increase which will generate the $500,000 target for Capital Reinvestment financing.  Ms .Sylvis reminded Utility Board members that the rate increase will be applied to the fixed meter charges, as well as to the water consumption rates.  


Item 3   Off Agenda Items

The Utility Board received a copy of the second mailer that was sent to customers directly affected by the Lake Line Sewer Replacement Program keeping them informed of the City’s progress on the project.  Chairman Kaufman requested that a copy of the first mailer to residents be sent to members of the Utility Board. Copies of all future mailings will be provided to Board Members.



The next regular meeting of the Utility Board will be held on Tuesday, November 4th at 7:00 p.m.


The Board Adjourned at 9:20 p.m.


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