1983 ADJ MTG MIN JUN 20 - Laserfiche WebLink

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339 Mayor Huntoon asked what happens if we do nothing. Discussion followed with Mr. McGee, Mr. Young, and Mr. Elliott saying the City would continue to subsidize an activity that is suppose to be self-sufficient. Mayor Huntoon argued that as he understood it, the Council has before them a balanced budget; this balanced budget includes the Water System, Cemetery, and Refuse, all of which are not self-sufficient. Mayor Huntoon asked why then, does the City feel that it has to con- tinue increasing customer utility fees. Mr. McGee said simply put, the revenues in the Water Department fail to match the revenue; in the past, the water system has been somewhat neglected in the maintenance area and, at the present time, we are trying to play catch up. Not to upgrade the system means the system will continue to go downhill, or we can continue to do the work and not increase fees; this would mean a loss of $350,000. Mr. McGee said our current rates are lower than the surrounding water companies i.e., San Bernardino charges 37 cents per 100 cubic ft., Riverside charges 55 cents and our current is 25 cents. Discussion followed on the cost of the meters. Mr. McGee said the cost of the larger meters is more because they represent a demand on (y) the water system either because of necessary fire flow or storage capacity. Mr. McGee said the demands are such that in order for the City to upgrade the water system to meet those demands and to deliver the water, the user fees must support the upgrading of the system. Mr. McGee said the average water rate increase for a residential customer will go from $6.09 to $8.05. This proposed increase is scheduled for July 1 and has been before the Utilities Commission. Mr. McGee said he has also asked for another increase in January, 1984, which will come in the lower use time of year; however, the Utilities Commission preferred not to initiate this increase at this time. Councilman Rios inquired about the difference between a Water Leadman and a Maintenance Man III. Mr. McGee replied the Water Leadman has the supervisory role for the crew; however, he is a productive worker as well. Councilman Rios asked why the Water Project Inspector/Cross-Connec- tion Serviceman was needed. Mr. McGee said the position has been deleted and they would probably request it again next year; however, it was intended to enforce the installation of cross -connection backflow devices in the City and to inspect water main leak tests, pressure tests, chlorination and flushing procedures for selected test points for the water bacterio- logical samples. Mr. McGee stated the position requires some training and that the City has some equipment on hand for the testing. Sewer Utilit Mr. McGee stated our contract with SOCI is near the end and we expect a new contract to be at a higher rate whether it be with SOCI or a new agent. Mr. McGee stated he has budgeted an additional $60,000 in the Professional Services account and that is basically the difference. Mr. McGee said the In -Lieu Taxes have gone up, but this is an uncontrollable factor. City Manager Elliott reported that staff is looking to enter into contract with Krieger & Stewart for the purposes of having them look at the Sewer Plant to determine what needs to be done prior to a new contract. Mr. McGee said he has an item on the Council Agenda with regards to the Krieger & Stewart proposal and, in essence, they would be report- ing to the City any maintenance defficiences needed to bring the plant up to a first grade operation so that a new contractor can take over or in order for SOCI to continue. JUN 01983